Insurance that protects a bank against fraudulent acts perpetrated by employees, as well as theft or burglary perpetrated by non-employees.
Tag: RAW
Bankers’ blanket bond
Broad policy protecting the first-party liability of leading financial institutions. Key areas of cover embrace: fidelity dishonesty of employees; fraud; forgery of cheques or other instruments; theft or robbery of valuables from own premises or in transit; damage to premises and contents during theft; counterfeit securities and counterfeit currency. The policy may be extended to cover computer fraud, safe deposit liability and kidnap and ransom. Cover is available for banks and financial institutions such as central depositories, processing centres and clearing houses. Standard wordings and manuscript wordings are available.
Banking policy
A reinsurance contract under which premiums are ‘banked’ with the reinsurer for later return to the reinsured with interest.
Bankruptcy
Condition under which a person or corporation is declared unable to pay debts.
Bankruptcy Action
Assignments of policies may also be void or against the trustee in bankruptcy by Sec. 42 of the Bankruptcy Act. But once the assignor has made a settlement of the Policy caught by that section, subsequent payments of premium up to the date of his bankruptcy will not constitute fresh settlement within it.
Bankruptcy and liquidation bond
A bond to guarantee the trustee in bankruptcy appointed by the creditors. If the trustee, who controls the assets of the insolvent party, fails to carry out his duties properly, the surety (e.g. an insurer) will make good the loss.
Bankruptcy trustee bonds
Bonds that provide a guarantee to the beneficiaries of the bankruptcy action that the bonded trustees, appointed in a bankruptcy proceeding, will perform their duties and handle the affairs according to the rulings of the court.
Banks /Lessors’ Hull and Liability Insurance
A contingency cover to protect banks and lessors against their inability to secure full or part payment in respect of their interest under the operator’s aviation policy. It also covers aircraft in the custody or control of the bank or lessor.