Banks Selling Insurance – Helping Customers

For the past 15 years banks have been trying to figure out how to sell insurance. The idea is to increase fee income and leverage the relationships - "synergy" is the word that gets thrown about. Sometimes it works OK - other times, well, not so good. At the same time, insurance agents have done an abysmal job of selling two types of … [Read more...]

Chubb Better With Dishonest Employees

I've complained often about the financial institution bond exclusion for "dishonest employees."Here is the clause on a Chubb policy I am currently reviewing for a bank client:This Bond terminates as to any Employee: F. immediately on the ASSURED, or any of its directors, trustees or officers not acting in collusion with such Employee, learning of … [Read more...]

Fidelity vs Employee Dishonesty

Client Question - What's the difference between fidelity insurance and employee dishonesty insurance?Answer - The terms are synonymous.  The following all mean the same thing:Employee Crime InsuranceEmployee Theft InsuranceFidelity InsuranceFidelity BondEmployee Dishonesty InsuranceEmployee Dishonesty BondCrime Fidelity InsuranceCrime Fidelity Bond … [Read more...]

Dishonest Employees and Crime Insurance

I have posted about this in the past.Most crime policies exclude acts by an employee who is known to have committed a past dishonest act. That exclusion removes coverage when a manager knows that an employee has stolen a pencil, and then six years later is found to have stolen $200,000.Goofy!Here is the wording from a Travelers' crime policy I am … [Read more...]

Crime Insurance – No Coverage For Owners

Here is an exclusion I see quite often in employee dishonesty and crime policies: "This Crime Policy will not apply to loss resulting directly or indirectly from any fraudulent, dishonest, or criminal act committed by the Insured, the Insured's natural person partners, any LLC Member or Officer-Shareholder, whether acting alone or in collusion with … [Read more...]

Bankers Bond – Employee Cancellation

I work with a great many banks, helping them buy and manage insurance.Today I reviewed a new policy for a client.  It's a policy from a new bank insurer, FinSecure.I have long railed about the cancellation provision in all bonds that ends a bank's insurance coverage when a bank officer learns of a past dishonest act of an employee.So, ABC Bank's … [Read more...]

Fiduciary vs ERISA Fidelity

The question came up yesterday when I was discussing the need for fiduciary liability coverage, "Do we need that plus the fidelity bond?" ERISA is the federal law that governs employee benefit and welfare plans.  I makes administrators of plans personally liable for mistakes.  That's what fiduciary covers - think of it as errors and ommissions … [Read more...]