Bankers Blanket Bond

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Bankers Blanket Bond

A bond or insurance policy covering a bank in the event it loses money as the result of employee theft or fraud. Blanket fidelity bonds generally only cover situations in which an employee commits fraud for personal gain; they do not cover situations in which the employee, without support or knowledge of management, falsifies transactions to make the bank appear healthier than it is. Some U.S. states require banks to have blanket bonds. It is a type of blanket fidelity bond.
References in periodicals archive ?
The forum will address issues related to professional indemnity, bankers blanket bonds, political violence and medical malpractice.
The Professional Liability Insurance Forum will address issues related to professional indemnity, bankers blanket bonds, political violence and medical malpractice, said the event organisers FinMark Communications.
26) a purchaser of a failed bank sought recovery under two bankers blanket bonds for losses sustained in connection with 14 separate transactions.
The court held that bonding companies issuing bankers blanket bonds have a right to assume that an insured will follow the procedures of its own operations manual and operate in a commercially reasonable manner.
In the First Dakota case (footnote 26), the plaintiff sought recovery of attorneys' fees after the court had entered judgment in its favor under two bankers blanket bonds.
First Bank(22) the surety sought a declaration that the acts of the insured's former president were not covered under a bankers blanket bond.
of Maryland(28) the insured sought recovery under Insuring Agreements B and D of a bankers blanket bond for losses sustained as a result of the conduct of two bank customers.
of Maryland(29) the FDIC, as receiver for the insured, sought recovery under Insuring Agreement E of a bankers blanket bond of various loan losses.
Lustig(30) the federal district court addressed the standard to be applied in determining when the insured "learned" of an employee's dishonest acts for purposes of termination of coverage under Section 12 of a bankers blanket bond.
of Maryland(34) the insured's successor in interest filed a declaratory judgment action seeking a construction of the termination clauses in a bankers blanket bond and a related excess employee dishonesty bond.
Citing Sections 7(a) and (b) of the bankers blanket bond, it held that the insurer was entitled to the insured's rights of recovery by assignment or subrogation only after the insurer made payment under the bond.
United Mercantile Bank(36) the plaintiff brought an action against a bank and its bankers blanket bond insurers for losses resulting from the dishonesty of a bank employee.