blanket bond

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Blanket Bond

A bond or insurance policy covering a company in the event it loses money as the result of employee theft or fraud. It is important to note that blanket bonds generally only cover situations in which an employee commits fraud for personal gain; it does not cover situations in which the employee (without support or knowledge of management) falsifies trading so that it makes the company appear healthier that it is. The Federal Bonding Program, which is run through the Department of Labor, insures or guarantees the insurance of ex-offenders whose employment adds significant risk of theft or fraud. See also: Bonding, Operational risk.

blanket 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.
Basic types of bonds in general usage are: (1) individual bonds, covering a named individual in a stated penalty; (2) name schedule bonds, covering a number of named individuals in the respective amounts set opposite their names; (3) position schedule bonds, covering each of the occupants of positions listed in the schedule in the respective amounts set opposite such positions; and (4) blanket bonds, covering all of the insured's officers and employees with no schedule or list of those covered being necessary and with all new officers and employees becoming bonded automatically, in a blanket penalty that takes two forms, an aggregate penalty bond and a multiple penalty bond.
For the purpose of ERISA Section 412, blanket bonds (which are either aggregate penalty or multiple penalty in form) are permissible only if they otherwise meet the requirements of ERISA and the regulations.
Oldenburg(21) the FDIC sought recovery under two savings and loan blanket bonds for losses relating to allegedly fraudulent loan transactions.
In Oldenburg, cited at footnote 21, the FDIC sought recovery under two savings and loan blanket bonds for loss resulting from alleged employee dishonesty.
This is available in three formats: individual bonds, schedule bonds and blanket bonds.
It also offers all financial institution forms, including bankers, brokers and insurance company blanket bonds, registered mail and excess securities.
Key to this will be a discussion on Banker's Blanket Bonds (BBB), a bond purchased by financial institutions from insurance brokers to protect a bank against losses from a variety of criminal acts carried out by employees.
The plaintiff sought recovery under 1980 Form 24 banker's blanket bonds issued in 1985 and 1987.
26) a purchaser of a failed bank sought recovery under two bankers blanket bonds for losses sustained in connection with 14 separate transactions.
24) involved claims under 51 bankers and brokers blanket bonds issued by 39 insurers for losses caused by the alleged dishonest conduct of Michael Milken and other Drexel employees.