• Application for Plans containing Qualifying Plan Assets Only
  

• (Our Maximum Bond Limit is $500,000)
  

• One & Five Year Bond Terms available
  

• Extended Coverage Endorsement available for an additional $95
  

• Bond amount should be 10% of total plan assets, with maximum limit of $500,000
  

• Bonds are written in $10,000 increments. 

Qualifying Plan Assets are any assets held by a financial institution, such as a bank, insurance company, broker-dealer or regulated entity; mutual funds; participant loans; qualifying employer securities; self-directed individual account plans. Real estate does not fall into this category unless held in trust by an above institution.

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• Application for Plans containing Non-Qualifying Plan Assets Only
  

• (Our Maximum Bond Limit is $5,000,000)
  

• Bonds are written for a one-year term only
  

• Extended Coverage Endorsement is not available.
  

• Bond amount should be 100% of total value of the non-qualifying plan assets
  

• Bonds are written in $10,000 increments. 

Non-Qualifying Plan Assets consist of assets not held in a bank or financial institution. Such as limited partnerships, art work, collectibles, mortgages, real estate and securities of “closely-held” companies.

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• Application for Plans containing combination of Qualifying and Non Qualifying Plan Assets
  

• (Our Maximum Bond Limit is $5,000,000)
  

• Bonds are written for a one-year term only
  

• Extended Coverage Endorsement is not available.
  

• If non-qualifying plan assets are greater than 5%, the bond amount should be equal to at least 100% of the total value of the non-qualifying plan assets.

Qualifying Plan Assets are any assets held by a financial institution, such as a bank, insurance company, broker-dealer or regulated entity; mutual funds; participant loans; qualifying employer securities; self-directed individual account plans. Real estate does not fall into this category unless held in trust by an above institution.

Non-Qualifying Plan Assets consist of assets not held in a bank or financial institution. Such as limited partnerships, art work, collectibles, mortgages, real estate and securities of “closely-held” companies.

In order to waive the annual CPA audit requirement, you must purchase a sufficient amount fidelity bond to meet the new requirements or be subject to a costly annual audit of the plan. If more than 5% of the plan assets consist of non-qualifying plan assets you need to purchase a fidelity bond for at least 100% of total value of the non-qualifying plan assets to waive the annual CPA audit requirement.