Washington State Department of Financial Institutions

Fidelity Bond FAQs

When does my policy need to be compliant?
You need to submit a compliant policy by the time your fidelity policy renews or by December 31, 2013, whichever date is earlier.

Where can I get a compliant policy?
We will accept policies from insurers that are able to write language that complies with RCW 18.44, and we cannot recommend any insurer over another. With that said, there are a few companies that we have been working with to arrive at mutually acceptable language. Those companies are Lloyds, Travelers, and Markel (for an excess coverage policy). We will also accept a combination of policies that together achieve compliance with the requirements.

What are the compliant policies available?
Fidelity policies vary between insurers. They may have unacceptable language in the body of the policy, the existing endorsements, or both. In addition, the exclusions or other language may impact different business types in different ways. Below are the compliant policy options by insurer that we are currently aware of.

1) Travelers
There are currently two options based on how you compensate the following individuals: owners, controlling persons, officers, designated escrow officer and branch designated escrow officer, or other persons subject to chapter 18.44 RCW.

  1. If all of the individuals listed above are W-2 employees or 1099 Independent Contractors, you must provide:
    1. Your complete policy that includes the new approved endorsements and excludes unacceptable endorsements
    2. Declaration of Employee Status Form (PDF)
      (original signed document required, no copies please)
  2. If ALL of the individuals listed above are NOT W-2 employees or 1099 Independent Contractors, you need to provide:
    1. Your complete policy that includes the new approved endorsements and excludes unacceptable endorsements
    2. Excess coverage policy. Currently, Markel is an insurer that has indicated they will provide an acceptable excess coverage policy to increase coverage for owners to $1 million.

2) Lloyds
There are currently two options for Lloyds policies, regardless of what type of company you have.

  1. Provide the new Washington Endorsement - Lloyds Version (PDF)* OR
  2. Provide a complete policy that includes new approved endorsements and excludes unacceptable endorsements

3) Other
We will accept policies or a combination of policies from other insurers if they are compliant.

Download the Washington Endorsement (PDF)* for an endorsement that when added to a standard policy creates a compliant policy. Please note that it will take additional time to review and address any identified concerns with policies from companies that we have not reviewed before.

How will I know what endorsements need to be added or deleted from my policy?
You will need to work with your insurance agent. If your insurance agent does not already know the requirements, they may contact a DFI representative for assistance.

What about the cost of these policies?
Licensees must have fidelity policies that are compliant with RCW 18.44. We have explored many different options and have addressed many coverage concerns directly with existing insurers in an effort to ensure that affordable policies are available.

Who do I contact with questions?
You may contact Dawn Woolery at Dawn.Woolery@dfi.wa.gov for additional information.

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