Fidelity Bond Compliance
Fidelity Bonds protect policyholders and businesses from dishonest behavior by employees or officers. The company is responsible for renewing the fidelity bond on the expiration date of the bond. It the bond is continuous, an email or letter must be sent notifying the Department the bond is still in force.
In addition to the bond IDOI needs a Fidelity Bond Cancellation Rider
The amount of the bond is determined by the formula included in the NAIC Examiners Handbook.
The cancellation rider is a form for IDOI that illustrates in writing the bonding company and insured must notify IDOI upon cancellation of the bond.
To complete a Cancellation Rider form you will need to know and provide the information below on the Cancellation Rider form in the following order:
- Company or corporation being insured (shown on the declaration page of the fidelity bond).
- Fidelity bond number
- The carrier's name
- Amount of fidelity bond
- The name of the company being insured - not the corporation name (if the corporation name must be in this blank, the company name must be under it) i.e.: XYZ Corp. is the parent or corporate name (from blank #1) and ABC Ins. Co. is a subsidiary and the company Indiana would be concerned with for coverage. ABC Ins. Co. would go in the seventh blank.
- All signatures must be original, even if the rider itself is a copy.
If you have any questions, please contact:
Return Cancellation Rider to:
Kathleen J. Mathis
Indiana Department of Insurance
311 West Washington Street, Suite 300
Indianapolis, Indiana 46204-2787