Financial institution bonds,
Form 24, 25 & 27 — Texas-licensed.

A financial institution bond — historically called a Banker's Blanket Bond — is the comprehensive employee-crime and financial-crime policy written exclusively for banks, credit unions, savings institutions, and other regulated lenders. It is the primary protection against insider fraud and external crimes targeting cash, securities, and customer accounts.

Standard insuring agreements cover: (A) employee dishonesty, (B) on-premises loss of money and securities, (C) in-transit loss, (D) forgery or alteration of checks and drafts, (E) securities fraud, and (F) counterfeit currency. Optional riders extend to computer crime, cyber-extortion, social-engineering fraud, and kidnap/extortion.

Regulators — the FDIC, OCC, Texas Department of Banking, and NCUA — all require adequate fidelity coverage as a condition of charter. Minimum limits vary by institution size and risk profile.

You will see the same product called several things. FI bond is the industry shorthand. Banker's Blanket Bond is the older name, still common in board minutes and exam files. Financial institution bond insurance is how buyers usually search for it, though the coverage is written as a bond rather than a policy — the practical difference is that it pays the institution directly for its own losses, and the regulator, not the buyer, decides which form is acceptable.

1. 01

   Application & exposure review

   Long-form application plus most recent call report, 3-year loss runs, internal controls questionnaire (ICQ), and organizational chart.

2. 02

   Surety review

   Underwriter reviews financials, audit exceptions, and prior fidelity losses. Additional questions common on first submission.

3. 03

   Quote & endorsements

   We present quote plus optional riders (computer crime, cyber, social engineering, kidnap/ransom). Board selects coverage.

4. 04

   Binding & filing

   Bond bound on effective date. Certificate provided for regulator exam file. Renewal application begins 60 days before expiration.

A credit union fidelity bond is governed by 12 CFR Part 713, and the rule is more prescriptive than most institutions expect. It fixes the amount, the form, the deductible, and the board's paperwork.

The amount is set by a table, not by negotiation. §713.5 keys the minimum to total assets: the lesser of assets or $250,000 below $4 million; $100,000 plus $50,000 per million above $1 million in the $4M–$50M band; $2,550,000 plus $10,000 per million above $50 million, capped at $5,000,000, in the $50M–$500M band; and one percent of assets, rounded to the nearest hundred million, capped at $9,000,000 above $500 million. Whatever the figure, the aggregate limit must be at least twice the single loss limit.

The form has its own expiration date. Under §713.4, only forms the NCUA Board has approved may be used, and approval expires ten years after the Board approved or reapproved it. Any form approved before 2019 expires on January 1, 2029. A form that has been amended, or a rider that limits coverage, needs fresh Board approval before you can rely on it.

The board has annual duties. §713.2 requires the board to review coverage at least annually, pass a resolution approving each purchase or renewal, and designate a signer who is not a credit union employee — and no board member may sign consecutive renewals for the same policy.

Texas state charters owe more. A Texas state-chartered credit union must also satisfy 7 Tex. Admin. Code §91.510, which requires the bond to contain a provision obliging the insurer to notify the Commissioner before cancelling coverage, and gives the Commissioner authority to order additional coverage on 30 days' notice.

We walk Texas credit unions through all four before renewal — read the full guide to Texas credit union fidelity bond requirements, or compare this bond against a standard employee dishonesty bond and the wider range of fidelity bonds we write.