6.6.6601    FIDELITY BOND

(1) The amount of fidelity bond coverage required by 33-3-307, MCA, for officers of a domestic insurer must be calculated as follows:

(a) The sum of the calculations in (i) and (ii) equals the amount of the insurer's exposure index:

(i) 5% of the insurer's admitted assets, as reported in the insurer's most recent annual statement; plus

(ii) 10% of the insurer's gross income. Gross income equals the total of direct and assumed premiums written plus investment income collected, as reported in the insurer's most recent annual statement.

(b) The amount of the exposure index, as calculated in (1) (a) , determines the acceptable range of the amount of the required fidelity bond, according to the following table:

 

Exposure Index Amount of Bond
$1,000-$25,000$15,000-$25,000
25,000-125,00025,000-50,000
125,000-250,00050,000-75,000
250,000-500,00075,000-100,000
500,000-750,000100,000-125,000
750,000-1,000,000125,000-150,000
1,000,000-1,375,000150,000-175,000
1,375,000-1,750,000175,000-200,000
1,750,000-2,125,000200,000-225,000
2,125,000-2,500,000225,000-250,000
2,500,000-3,325,000250,000-300,000
3,325,000-4,175,000300,000-350,000
4,175,000-5,000,000350,000-400,000
5,000,000-6,075,000400,000-450,000
6,075,000-7,150,000450,000-500,000
7,150,000-9,275,000500,000-600,000
9,275,000-11,425,000600,000-700,000
11,425,000-15,000,000700,000-800,000
15,000,000-20,000,000800,000-900,000
20,000,000-25,000,000900,000-1,000,000
25,000,000-50,000,0001,000,000-1,250,000
50,000,000-87,500,0001,250,000-1,500,000
87,500,000-125,000,0001,500,000-1,750,000
125,000,000-187,500,0001,750,000-2,000,000
187,500,000-250,000,0002,000,000-2,250,000
250,000,000-333,325,0002,250,000-2,500,000
333,325,000-500,000,0002,500,000-3,000,000
500,000,000-750,000,0003,000,000-3,500,000
750,000,000-1,000,000,0003,500,000-4,000,000
1,000,000,000-1,250,000,0004,000,000-4,500,000
1,250,000,000-1,500,000,0004,500,000-5,000,000

History: Sec. 33-3-307, MCA; IMP, Sec. 33-3-307, MCA; NEW, 1997 MAR p. 2180, Eff. 12/2/97.