Term
| Staff Adjuster and Independent Adjusters do not need _____. |
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Definition
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Term
| In the state of Texas, ____ Public Adjusters need a bond. |
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Definition
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Term
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Definition
| a penal bond for a specific amount conditioned for the faithful and honest conduct of business by the licensed adjuster. |
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Term
| Bonds involve three parties which include: |
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Definition
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The Principal
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The Surety
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The Obligee
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Term
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Definition
| this is the party who has a duty to perform. The ______ is also known as the obligor. |
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Term
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Definition
| this is the party guaranteeing the performance by the principal. The _____ is also known as the guarantor. |
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Term
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Definition
| this is the party reimbursed by the surety if the principal fails to perform. |
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Term
| If a principal defaults, the ______ must step in to guarantee or complete the work. The _____ has a legal right of actiona against the principal until the amount of the ____ is recovered. Therefore, _______ involves the faithful performance of a principal guaranteed by a surety company that agrees to "stand good" for the completion of an action to the satisfaction of the obligee. |
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Definition
| surety; surety; loss; suretyship |
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Term
| A ________ _____ must repay the suretyship. |
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Definition
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Term
| In addition, ______ are continuous instruments until they terminate in accordance with the conditions of the _____. There is no ______ _______ ______ for a bond. They _____ be cancelled. |
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Definition
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Term
| No _____ is anticipated with a bond. __________ do not fund a reserve like insurance. A ______ _____ is paid instead of a premium. |
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Definition
| loss; Premiums; service fee |
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Term
| There are two types of bonds: |
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Definition
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Fidelity Bonds
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Surety Bonds
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Term
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Definition
| is a form of insurance protection that covers policyholders from losses that they incur as a result of fraudulent acts by specific individuals. |
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Term
| ________ _______ usually insures a business against the dishonest or fraudulent acts of its employees. While called _______, these obligations are really insurance policies. These policies protect _________ from losses of company monies, securities, and other property from employees who have a _______ ______ to cause the company loss. |
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Definition
| Fidelity bond; bonds; businesses; manifest intent |
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Term
| There are also many other forms of ______ -_______ policies (burglary, fire, general theft, computer theft, disapperance, fraud, forgery, etc.) to protect company assets. However, it is important to note that these bonds are generally only paid out when a __________ is handed down. |
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Definition
| crime- insurance; conviction |
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Term
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Definition
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Name Schedule
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Position Schedule
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Commercial Blanket
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Blanket Position
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Term
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Definition
| These bonds cover each employee on the policy scheduled for the amount listed on the schedule. |
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Term
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Definition
| These bonds list positions in the company that are covered, rather than the individuals who fill these positions. |
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Term
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Definition
| These bonds cover losses arising from the dishonesty of one or more employees acting separately or together. Neither the employees nor the positions are specifically named. |
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Term
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Definition
| These bonds are similar to Commercial Blanket bonds in those employees or positions are not specifically listed. However, the bond's limit applies separately to each employee involved in a loss. |
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Term
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Definition
| are issued for persons doing contract construction, those connected with court actions, and those seeking licenses and permits. |
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Term
| The _____ _______ guarantees that the principal is honest and has the necessary ability and financial capacity to carry out the obligation for whihc he or she is bonded. |
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Definition
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Term
| There are several types of Surety Bonds, including: |
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Definition
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Contract Bonds
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Bid Bond
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Performance Bond
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Payment Bond
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Term
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Definition
| are widely used by the construction industry but also well used within many service groups as well as supply, manufacturing and technology industries among others. |
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Term
| _______ ________ guarantee the performance and or payment of obligations under contract. There are generally ____ parts to the contract surety process which are : |
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Definition
Contract Bonds; 3
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Bid Bond
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Performance bond
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Payment (Contract) Bond
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Term
| ____ ______ is issued as part of a bidding process by the surety to the contract "owner" or obligee. This is a ____ _____ _______ that says if the bidder is awarded the contract the bidder will fulfill the contract according to the bid terms including the posting of the performance and payment bonds. |
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Definition
| Bid bond; good faith guarantee |
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Term
| ____ _____ are usually between five and ten percent of the full contract amount. Once the bid bond has been accepted and the contract is awarded most contracts allow for at least ____ days to supply the final payment and performance bonds. These are two separate bonds guaranteeing two separate issues, sometimes written as ___ bond but are still ____ separate obligations. |
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Definition
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Term
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Definition
| is used to gurantee the schedule, workmanship and completion of the contract outside of the penalties and corrective strategy laid out in the contract. |
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Term
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Definition
| is used to protect the obligee from the principal's sub contractors and suppliers. |
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Term
| The _____ _____ protects the obligee for having to pay twice. When payment is not made to a contractor's subs or suppliers, they have a right to file a ______ against the total project. |
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Definition
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Term
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Definition
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Bid Bond
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Payment Bond
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Site Improvement Bond
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Supply Bond
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Maintenance Bond
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Subdivision Bond
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Term
| Bond forms that have a _______ ________ ______ and _______ _____ are often times instantly issued and require very little underwriting. |
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Definition
| standard cancellation clause; aggregate limit |
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Term
| Performance related issues and bond forms that are open ended or financial gurantees will take more underwriting such as ________ and ________ _________. |
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Definition
| financial; experience analysis |
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Term
| A bond that is not a government agency regarding a license or permit but has similar language is referred to as __________. A couple examples of miscellaneous bonds are ______ _______ or ____ _____. |
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Definition
| Miscellaneous; utility guarantees; tax bonds |
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Term
| Some court proceedings _______ a bond in order to protect against financial loss for the party you are engaged against in court. Generally, court bonds refer to ___ ____ ____ _____. There are many types of bonds with _______ underwriting criteria. |
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Definition
| require; any court ordered bond; different |
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Term
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Definition
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Term
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Definition
When a court makes a financial judgment and an appeal has been made, the court will order an ______ ______ be in place to protect the original financial judgment. This is for two reasons:
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To guarantee the awarded party payment if the appeal is lost
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To hopefully stop time wasting appeals.
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Term
| Appeal Bonds generally carry a ____ ________ _______ for non-account principles. |
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Definition
| 100% collateral requirement |
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Term
| Custodial/ Guardianship Bond |
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Definition
| These bonds are required by the appointed guardian of an incapable persons assets. Often times you will see this when a minor's parent has passed and has left assets to the minor. |
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Term
| Custodial/Guardianship bonds guarantees that the responsible party (new guardian or responsible adult/faciliator of the assets) will manage those assets in the ______ ______ _______ until they are an adult. These bonds can also be used for ___ _______ _______. The physically or mentally challenged, elderly or other reason for a court to deem someone _______ __ _______ ________ their own assets are other cases when these bonds might be required. |
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Definition
| minor's best interest; any incapable situation; incapable of correctly managing |
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Term
| Probate bonds/ Executor Bonds |
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Definition
| are required by the person who has been charged with the distribution of assets of ones estate. |
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Term
| There is an ______ ________ _______ by the executor and Probate/Executor bond is to protect the _____ ______ from missue. |
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Definition
| assumed fiduciary responsibility; estates assets |
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Term
| There are several crime definition that are ________ to crime insurance policies and the coverage provided. |
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Definition
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Term
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Definition
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Burglary
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Robbery
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Theft ( Larceny, Embezzlement, Forgery)
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Mysterious disapperance
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Term
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Definition
is the theft of property from within a premise that leaves visible marks or signs of forced entry.
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Most burglaries occur when the premises are unoccupied.
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Safe burglary is the unlawful taking of property from a locked safe or vault, evidence by marks of forcible entry, or by removal of the entire safe or vault.
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Term
| ________ is the dishonest taking or stealing of property from an individual, in possession of that property. ______ involves a face-to-face confrontation between the robber and the victim. |
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Definition
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Term
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Definition
| is any dishonest taking of property without an owner's consent. Burglary and robbery are two forms of theft. ______ also includes the following definitions. |
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Term
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Definition
is a theft that occurs when there is access to the area where the stolen property was located.
Some common examples of larceny include theft by:
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Term
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Definition
| is a fraudulent act that involves the unlawful appropriation of property or money by someone who has been entrusted with the property. |
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Term
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Definition
| Is an illegal that involves the falsification of one person's signature by another to illegally obtain property or money. A common example of ______ is the signing of another individuals's name to a check to obtain funds illegally. |
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Term
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Definition
| This refers to a situation in which an article of property is known to have disappeared but it is impossible to determine how the disapperance occured. In other words, the circumstances under which the disapperance occured cannot be explained. This is not considered theft. |
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Term
| Crime coverage may be written as a ______ policy or added to a package policy. When added to the package policy, the common conditions and declarations ______. In addition, a _____ declarations page and coverage form for will be attached. |
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Definition
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Term
| Some of the more important general conditions are as follows: |
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Definition
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Consolidation/ merger
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Duties in the event of loss
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Legal action against insurer
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Records
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Territory
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Term
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Definition
| If through consolidation or merge any additional persons become employees or the insured acquires control of additional premises, any coverage provided for the orignal employees and premises will apply to the new employees and/or premises for a period of 90 days. The insurer must be provided with written notice ( and any additional premium) within this 90 day period for the additional coverage to continue. |
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Term
| Duties in the event of loss |
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Definition
| The insured must notify the insurer as soon as possible if a loss occurs. A sworn proof of loss must also be provided within 120 days of the loss. The insured may have to submit to an examination under oath and must cooperate with the insurer regarding any claim investigation. The police must be notified, and a police report must be made when a loss occurs. |
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Term
| Legal action against insurer |
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Definition
| No legal action may be taken against the insurer until 90 days after the insured has filed proof of loss. Action may not be taken later later than the discovery of a loss. |
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Term
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Definition
| The insured must keep records of alll covered property so an insurer can verify the amount of any loss. |
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Term
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Definition
| Insurance covers only acts committed or events occuring within the United States or Canada. |
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Term
| For all coverages, the insurer will not pay for: |
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Definition
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dishonest acts commited by an insured or partner
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dishonest acts committed by an employee, except as covered by the employee theft coverage
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seizure or destruction of property by order of governmental authority
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indirect loss
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expenses related to any legal action
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confidential information
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loss due to pollution
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loss due to nuclear reaction
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loss due to war
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Term
| There are teen standard insuring agreements. They are are as follows: |
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Definition
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Employee Theft
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Forgery or alteration
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Inside the premises, theft of money and securities
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Inside the premises, robbery or safe burglary of money and securities
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Inside the premises, robbery or burglary of other property
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Outside the premises
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Premises burglary
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Computer fraud
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Fund transfer fraud
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Money orders and counterfeit paper currency
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Term
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Definition
| Employee theft covers theft of money, secruities, and other property by employees. |
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Term
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Definition
| The ______ ___ ________ form pays for losses caused by outside parties who forge or alter the named insured's checks. ______ ___ _________ of checks performed by the insured, employees, managers, directors, trustees, or representatives are excluded. |
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Term
| Inside the premises, theft of money and securities |
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Definition
| It pays for theft of money and securities from within the insured premises or banking premises. No merchandise or stock is covered. |
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Term
| Inside the premises, robbery or safe burglary of money and securities |
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Definition
| This coverage applies to robbery or attempted robbery of a custodian and to actual or attempted safe burglary and must take place within the premises. |
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Term
| Inside the premises, robbery or burglary of other property |
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Definition
| This coverage applies to actual or attempted robbery of a watchperson or burglary of property other than money, securities, and motor vehicles, trailers or semitrailers, or equipment and accessories attached to them. |
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Term
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Definition
| Theft, disapperance, or destruction of money and securities while outside the premises and in the care and custody of a messenger or armored car company. |
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Term
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Definition
| This covers merchandise, furniture, fixtures, equipment, and all property on the business premises except money and securities. |
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Term
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Definition
| _____ _______ covers money, securities, and other property and involves the use of any computer to fraudulently transfer covered property from the insured premises or a banking premises to somehwere else outside of the insured premises. |
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Term
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Definition
| ______ _______ ________ pays for losses resulting from fraudulent instructions received by a financial institution to pay money from the insured's transfer account to someone else. |
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Term
| Money orders and counterfeit paper currency |
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Definition
| This coverage has been broadened to include any currency, not just that of the United States and Canada. The money must have been accepted in good faith in exchange for goods, money, or services. |
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