Proprietary 8-23 FIDELITY BOND District managers, full-time agents and Reserve agents and all of their respective staff members, full-time, part-time, paid or unpaid, are required to be bonded at all times. In general, the Farmers-sponsored Agents’ Fidelity Bond protects the Companies and approved financial institutions against defalcations, shortages, or losses involving claims, premiums or any other Farmers property up to applicable limits. Coverage is not provided for premiums belonging to non-Farmers insurers (see the named insureds listed in the Fidelity Bond). It is not mandatory for individuals to be bonded to participate in the Farmers Agents’ Fidelity Bond program (underwritten by Truck Insurance Exchange with limits of $100,000). Separate fidelity bond coverage, obtained at the individual’s own expense, can be provided to satisfy the Companies’ bonding requirements. The bond must be acceptable to the Companies and have all of the Farmers Companies listed as “named insureds,” not the agent or the agency. In 2024, the premium for the Fidelity Bond is $60 per year for agents and district managers, and $25 for Reserve agents. The entire annual premium is charged to the January folio. Newly appointed participants are automatically covered at no additional premium until January 1st of the following year. Also, there will be no premium returned for those whose contracts terminate during the course of the year. Shortages or defalcations Shortages, defalcations, or losses can occur in many ways. For example, checks issued on insufficient funds, failure to remit premium collections promptly, customer complaints of unjustified lapses, or improper handling of claims payments are some of the more obvious signs of a shortage or defalcation. When a shortage or loss is suspected, immediately contact Internal Audit Distribution Compliance by telephone. If an agent has knowledge of the dishonest acts of another individual, it is the responsibility of the agent to report it. This is required as part of the terms and conditions of the Agents’ Fidelity Bond. Any prior dishonest acts of an applicant for this bond or a bonded individual will be the basis for exclusion from coverage under this policy. In addition, bonding coverage ceases at the time of proof of loss for the responsible individual in the agency. 31 fidelity bond To report a claim, or when a loss is suspected, please send an email to Distribution Compliance at usw.distribution.compliance@farmersinsurance.com. A copy of the Farmers Agents’ Fidelity Bond is available online at www.farmersagentsbenefits.com. Sign in with your User ID and Password. Click on the “Resources” menu and select your document.
RkJQdWJsaXNoZXIy NzQzMzY=