ch16 bonds

License and Permit:

individuals need them to make the governments happy in order to get permits and licenses issued.

Limit of Liability:

The face amount of a fidelity bond

Surety Bond:

a guarantee for performance (a promise) made by a Principal (also known as the "obligor" on Obliges which is financial backed by a Surety (an insurance company also called the "Guarantor").

Individual:

each covered employee is individually named.

Scheduled:

multiple name employees or protects against loss when any employee is engaged with a specific job duty (this is known as a position schedule bond.

Fidelity Bonds:

offer protection against the dishonest and fraudulent acts of employees; therefore, they guarantee honesty.

Public Official:

protect the citizens of local governments if elected officials rob the public blind.

Blanket Position Bond:

the bond limit applies against each employee no matter how many employees are involved in a single loss.

Commercial Blanket Bond

the bond limit is the maximum amount that will be paid for a single loss regardless of the number or employees involved.

Bond Penalty:

the face amount, or limit, of a surety bond.

Discovery Period:

the length of a time the employer has to realize that they suffered a loss at the hands of a dishonest employee and to make a claim that will be payable.

Contracts:

they guarantee performance expected under a contract.