Summary
Fidelity bonds for employee benefit plans are primarily governed by the Employee Retirement Income Security Act (ERISA), which mandates fiduciaries to be bonded to protect against fraud or dishonesty. The bond must cover at least 10% of plan assets, with specific minimum and maximum limits. Outside of ERISA, no federal laws specifically address fidelity bonds, but regulations like the Federal Deposit Insurance Act and the Securities Exchange Act of 1934 may indirectly impact them, particularly concerning financial institutions and securities. Contractual terms regarding non-refundability of premiums are generally enforceable if agreed upon and compliant with state insurance regulations. For specific guidance, consulting an attorney specializing in ERISA or insurance law is advisable.Full Conversation
A Surety Company issues ERISA Fidelity Bonds. In the Cancellation section, the Bond states: “There are no premium refunds if the Insured or the employer that sponsors the Insured Plan cancels the policy as stated and agreed to by application, receipt of policy and payment of premium.”
Is this provision regarding the non-refundability of the premium when the policy is cancelled by insured enforceable? The Bonds are issued to employee benefit plans in various jurisdictions. There has been a demand for refunds upon cancellation of bonds.
Hey ****! To determine if the non-refundability provision is enforceable in New York, here are a few general points:
- Contractual terms are generally enforceable if agreed upon by both parties.
- The provision must comply with state-specific insurance regulations.
- ERISA preempts state laws in certain cases, which might affect enforceability.
Have you consulted with an attorney specializing in ERISA or insurance law? They could provide more specific guidance based on the jurisdictions involved.
IS there a federal law that addresses Fidelity Bonds?
Hey ****! Yes, there is a federal law that addresses Fidelity Bonds, specifically under the Employee Retirement Income Security Act (ERISA). Here are some key points:
- ERISA requires fiduciaries of employee benefit plans to be bonded to protect the plan from losses due to fraud or dishonesty.
- The bond must be at least *% of the plan assets, with a minimum of $*,* and a maximum of $*,* (or $*,*,* for plans that hold employer securities).
Would you like more detailed information or assistance connecting with a local lawyer specializing in ERISA?
Are there any other federal laws that address Fidelity Bonds?
Case Rating: *
Hey ****! Beyond ERISA, no other federal laws specifically address Fidelity Bonds for employee benefit plans. ERISA is the primary federal statute governing these bonds. However, other general federal regulations on bonds and insurance could indirectly impact Fidelity Bonds. Would you like more detailed assistance on this matter?
Outside of the context of ERISA, are there any federal laws that address fidelity bonds?
Case Rating: *
Hey ****! Outside of ERISA, federal laws generally do not specifically address fidelity bonds for employee benefit plans. However, other federal regulations related to insurance and financial institutions might have provisions that can indirectly affect fidelity bonds.
Is there a specific issue or context you're concerned about regarding fidelity bonds?
No, just generally
Case Rating: *
Hey ****! If you have any more specific questions or need further clarification on federal regulations affecting fidelity bonds outside of ERISA, feel free to ask!
Outside of the context of employee benefit plans, just talking about fidelity bonds generally, what federal laws adress it
Case Rating: *
Hey ****! Generally, outside of ERISA, fidelity bonds are not specifically addressed by federal laws. However, the following federal regulations might indirectly impact fidelity bonds:
- The Federal Deposit Insurance Act (FDIA)
- The Securities Exchange Act of *
These regulations pertain to financial institutions and securities, which can involve fidelity bonds. Do you need more details on these laws?
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