Do bonds provide adequate protection from scams to financial institutions? An excellent article in National Underwriter (here) outlines some of the coverage issues, particularly regarding mortgage fraud. The article points out: The two insuring perils common to most crime insurance policies and bonds are: employee dishonesty, covering situations where an insider has something to do with the fraud, and “securities extended forgery,” covering losses sustained in connection with loans. A nearly $500,000 check in New York highlights the situation (see…
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