Crime Risk Management

Comprehensive Crime Policy and Crime Pool Deductible

Postal Surety Bonds

Notary Public

Subject: Comprehensive Crime Policy and Crime Pool Deductible

  1. Purpose:

      2. This section has been developed to provide the Client's institution risk manager and related personnel with a description of the Client's crime policy.

  2. Background:

      3. In our large and decentralized system of Client's institutions, acts of embezzlement, theft, and financial dissension can and do occur. The potential financial loss faced by the Client's in light of its fiscal operations is one, which has concerned risk management for many years. For this reason, a comprehensive crime policy is purchased annually by Client's Risk Management, allocated to the institutions, in an attempt to transfer this risk away from the institutions. In addition to transfer, the institutions must take a firm stance against crime by dealing with it on a daily basis through employee training and security measures.

  3. Coverage Description:

      4. Policy Type:

      Commercial Crime

      Insurer:

      ABC Insurance (for example)

      Limit:

      $250,000 credit card forgery

       

      $5,000,000 all else

      Deductible:

      $1,000 for credit card forgery
      $500,000 per occurrence all else

      Policy Dates:

      02/27 - 02/27

      Territory:

      Worldwide

  4. Coverages:

      5. The Crime policy is composed of the following separate insuring agreements:

        1. Employee Dishonesty - Loss of money, securities, and other property up to $5M resulting directly from one or more fraudulent or dishonest acts committed by an employee.

        2. Loss Inside The Premises - Up to $5M for loss of money and securities by the actual destruction, disappearance, or wrongful abstraction thereof within the premises or within the banking premises. Loss of other property or damage to premises by safe burglary or robbery.

        3. Loss Outside the Premises - Up to $5M for loss of money and securities by the actual destruction, disappearance, or wrongful abstraction thereof outside the premises while being conveyed by messenger, armored vehicle, or within the living quarter of messenger.

        4. Money Orders and Counterfeit Paper Currency Coverage - Up to $5M for loss due to acceptance in good faith of counterfeit US or Canadian paper currency in exchange for merchandise, money or services of any post office or express money order, issued or purporting to have been issued by any post office or express company.

        5. Depositors Forgery Coverage - Up to $5M for loss which the insured or any bank which is included in the insured's proof of loss and in which the insured carries a checking or savings account as sustained through forgery or alteration of any check.

        6. Credit Card Forgery - Up to $250,000 for loss which the insured shall sustain through forgery or alteration of any credit card issued to the insured.

        7. Computer Fraud Coverage - Up to $5M for loss resulting from the wrongful abstraction of money, securities or other property related to the use of a computer to fraudulently cause the transfer of such property.

      Exclusion:

      Under the General Terms and Conditions portion of this policy is a section called "Prior Fraud, Dishonesty or Cancellation. This section states that the coverage will not apply to any employee from and after the time that the insured has knowledge or information that such employee has committed any fraudulent or dishonest act in the service of the insured." Therefore coverage ceases when a supervisor becomes aware of the act of the employee and special provisions may need to be taken by the Client's office to insure no further fraud occurs or to procure insurance elsewhere.

      Additional coverage and exclusion details may be obtained from Client's Risk Management.

  5. The Crime Bond Pool:

      6. In the event that a loss does occur, the crime pool deductible will be used to assist the institution in meeting the deductible. Institutions will only be charged to fund the crime pool deductible account if our experience becomes poor or the crime policy's deductible increases.

  6. Claim Procedures:

      7. According to the crime policy, upon knowledge or discovery of loss or of an occurrence which may give rise to a claim for loss, the Client's institution must give notice as soon as practicable to the Client's Risk Manager so that determination can be made as to the area of coverage that applies.

      Client's Risk Management requests that when a loss is discovered, claims must be reported directly to UKGC office. If the loss is a violation of the law the police must be notified also. Often claims may be covered under the UKGC Self-funded Property Program. If that is not the case we will pursue reimbursement for covered losses as follows:

      $5,000 or less

      Client's Institution absorbs the first $5,000.

      $5,000 - $25,000

      Loss amounts greater than $5000 will be paid out of the crime pool deductible fund at Client's Risk Management up to $25,000.

      Over $25,000

      Loss greater than $25,000 will be covered under the crime policy.

      Loss greater than $25,000 will be covered under the crime policy.

      Unit/division

      Date of discovery

      Dates of loss

      Employees involved

      Description of loss occurrence

      Amount of loss

      Description of stolen property

      Steps taken to prevent future losses

      Client's police and security report

      Documentation such as cancelled checks

      Registers, etc.

      Refer to FPPP16 for additional information relating to procedures to be used when fraud, embezzlement, conflict of interest, and theft, which affect fiscal integrity are discovered.

Subject: Postal Surety Bonds

  1. Purpose:

      2. This section is designed to inform the Client's risk managers and business personnel about the availability and purpose of postal bond insurance. This section applies only to those Client's divisions which have US Postal Service (USPS) operations.

  2. Background:

      3. Any Client's division, which has contracted with the USPS to provide postal services to the public is required by the USPS to be bonded for those operations. The bond is simply a guarantee from the insurer to the post office that any failure in the performance of the contract will be paid for by the insurer. This includes things like loss or theft of USPS property, stamps, or money.

  3. Coverage Description:

      4. Policy Type

      Surety Bond

      Policy No.

      1234567890 (for example)

      Insurer

      Fidelity and Deposit Company (for example)

      Agent

      AON Risk Services (for example)

      Principals

      Client

      Limit

      $3,000-$10,000 per location

      Deductible

      None

      Premium Amount

      $250.00

      Policy Dates

      7/18/05 - 7/18/08

  4. Procedures:

      5. To obtain this type of coverage for postal operations as required, the Client simply needs to complete an application, which is available through the Client's Risk Management Office. The Client's divisions are encouraged to purchase this coverage under the Client's blanket policy for a cost savings and to simplify procedures.

      Any claims that arise from the USPS should be directed to the Client's Risk Management Office where investigation and settlement will be determined through the broker and insurer.

Subject: Notary Public

  1. Purpose:

      2. The purpose of this paper is to explain issues surrounding Client's employees who either desire to be or are currently a notary public. This paper will explain how to become a Notary Public as well as the powers that go along with it.

  2. Background:

      3. The acts of a notary at an institution are important. A notary performs an act of "notarization" which is more precisely called a "notarial act." "Notarial act" means any act that a notary public is authorized to perform, and includes taking an acknowledgment, administering an oath of affirmation, taking a verification upon oath or affirmation, witnessing or attesting a signature, certifying or attesting a copy and noting a protest of a negotiable instrument.

  3. Requirements:

      4. A notary public must be a resident, 18 years of age or older, be familiar with the duties and responsibilities of a Notary, and not have an arrest or conviction record which is unacceptable under Law.

      In order to complete a notary application, you must first obtain a notary seal or rubber stamp. The seal or stamp must state "Notary Public", "State of ______", and the name of the notary. You may use initials, or a shortened first name if you wish, but you must use your current last name in full. You must also always sign your name exactly as set forth on your notary seal or stamp.

      A $500 surety bond is required for all applicants applying or reapplying for a notary public commission. This bond is an insurance agreement making the surety legally liable for up to $500 in damages for failure of the notary applicant to discharge his or her duties. Any damages beyond this amount are the responsibility of the notary. This bond cannot be canceled and will expire in four years with the notary commission.

  4. Procedures:

      5. 1. NOTARY PUBLIC APPLICATION: Complete sections 1 through 5. On the left side of the application put a legible impression of your seal or rubber stamp, your name, address, date your present commission expires (if applicable) and sign by the X. Complete sections 6 through 13 and sign again.

      2. OATH OF OFFICE: Take the OATH OF OFFICE and follow instructions on the form for numbers 1 through 6. In Section A sign your name on line number 7. Leave 8, 9 and 10 blank.

      ON THE OTHER SIDE, print or type your name, residence address, telephone number. DO NOT COMPLETE SECTION B OR C.

      3. ENCLOSE TWO CHECKS: $20.00 to Notary Bond Renewal Service for the four year $500 bond premium, and $20.00 to the Secretary of State for the filing fee.

      4. DIRECT ALL INQUIRIES TO THE ADDRESS SHOWN BELOW:

      Notary Bond Renewal Service
      Division of Stilp Agency
      P.O. Box 698
      Neenah, WI 54957-0698
      (920) 722-1331

      5. PLEASE NOTE THAT PROCEDURES ARE THE SAME FOR BOTH FIRST TIME AND RENEWAL NOTARIES.

  5. Maintenance:

      6. The statutes require that a notary give written notice of any change of address to the Secretary of State within 5 days of such change. When writing to the Office of the Secretary of State, be sure to include your expiration date so the information can be applied to the correct file. When changing your name for any reason, it is strongly suggested that you purchase a new seal or rubber stamp stating your new name and request a Change of Name form from the Office of Secretary of State. You are required to complete and submit the form to the Office of the Secretary prior to using your new name and seal for notary purposes.

      If the notary seal is lost or stolen you need to immediately notify the Secretary of State office in writing. Then order a new seal or stamp that is somewhat different than the previous one. When the new seal or stamp is received, send samples to the Secretary of State office before using it.

      You may use both a rubber stamp and an engraved seal provided that samples of each are on file in the Secretary of State office prior to use. If you purchase a second seal or stamp, make sure the name is exactly the same as it appears on the original. Before using the new seal/stamp be sure to send samples of your signature, commission expiration date, and future date of intended use to the Secretary of State office.

  6. Notary Public Information:

      7. Please read and understand the powers that go along with the notary public statute. If you have any questions please contact the Secretary of State or the Stilp Agency.

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