6-868. Fidelity bond; requirements

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A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

A. A trust company doing business under this chapter shall obtain and maintain a fidelity bond, naming the trust company as obligee, in the following amounts:

Trust Assets Fidelity

(market value) Bond Amounts

less than $3,000,000 $500,000

$3,000,000 to $4,999,999 $525,000

$5,000,000 to $7,499,999 $550,000

$7,500,000 to $9,999,999 $575,000

$10,000,000 to $14,999,999 $600,000

$15,000,000 to $19,999,999 $650,000

$20,000,000 to $24,999,999 $700,000

$25,000,000 to $34,999,999 $750,000

$35,000,000 to $49,999,999 $850,000

$50,000,000 to $74,999,999 $950,000

$75,000,000 to $99,999,999 $1,000,000

$100,000,000 to $149,999,999 $1,250,000

$150,000,000 to $249,999,999 $1,600,000

$250,000,000 to $499,999,999 $2,100,000

$500,000,000 to $999,999,999 $2,400,000

$1,000,000,000 to $2,000,000,000 $4,400,000

$2,000,000,001 to $3,000,000,000 $6,000,000

for every $1,000,000,000 over $3,000,000,000 $1,000,000

B. The trust company shall file a signed copy of its bond with the deputy director, and the bond remains a part of the department's records. The bond company shall not cancel the bond for failure to pay the premium unless the bond company files a written notice with the department at least thirty days before canceling the bond. The bond company shall not cancel the bond for any other reason unless the bond company files a written notice with the department at least forty-five days before canceling the bond.

C. The bond may contain a deductible clause not to exceed fifteen percent of the face amount of the bond. If the deductible exceeds fifteen percent of the face amount of the bond, the deductible clause must be approved by the deputy director.