Hello
I have a client whom I am filling out form 5500 for. The amount of the fidelity bond is the question.
The agent says the fidelity bond coverage is 10 million dollars. I have never seen coverage for this amount. The plan assets are only 3.5 million. I have seen clients who obtain more than the required bonding coverage...but ten million dollars?
I questioned the amount, including a question about whether perhaps the bond coverage they were giving me represented fiduciary liability insurance instead of a fidelity bond, but the agent said no, that the ten million dollars was the amount of coverage for the fidelity bond.
The answer I got from the agent was that the amount of the coverage represented the client's "crime policy" which includes theft of funds from the plan required by ERISA.
I guess my question is, does this seem odd to anyone else? Does it sound as if the policy includes other things besides the ERISA coverage, and if so, would I put the whole 10 million dollars in coverage on the 5500? or just the part that covers the plan?
I am asking this for my own personal knowledge, as I have gone back and forth with the client, and he to his insurance agent, and I feel I may be becoming a pest!
I am not knowledgeable about insurance so I would appreciate anyone who is answering the question. Thanks a lot!
:confused:
