
ERISA Bond Application Surety Bonds Form
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People also ask
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Is an ERISA bond a surety bond?
While other types of coverage protect the people and businesses in charge of these funds, an ERISA bond covers the plan itself. It is a surety bond put in place to protect plan beneficiaries.
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Are bonds eligible for ERISA?
Under ERISA, each person must be bonded for at least 10% of the $1 million or $100,000. (Note: Bonds covering more than one plan may be required to be over $500,000 to meet the ERISA requirement because persons covered by a bond may handle funds or other property for more than one plan.)
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What is a surety bond application?
A surety bond is a promise to be liable for the debt, default, or failure of another. It is a three-party contract by which one party (the surety) guarantees the performance or obligations of a second party (the principal) to a third party (the obligee).
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What is the section 412 of ERISA bond?
ERISA section 412 generally requires plans with more than one participant to have a fidelity bond in the amount of: 10% of the trust: minimum bonding = $1,000. maximum bonding = $500,000.
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