Fidelity Insuring Agreement
The fidelity insuring agreement is the key coverage of the bond. This insuring agreement covers loss resulting from certain types of dishonest acts of an employee, whether acting alone or in collusion with others. For coverage to apply, the employee must have intended to cause the insured financial institution a loss. For loss resulting from trading, the employee also must have received an improper financial benefit. For loss resulting from loans, the employee also must have been in collusion with a party to the loan transactions and must have received an improper financial benefit with a value of at least $2,500. Salaries, bonuses,commissions, etc., do not qualify as an improper financial benefit.