6.6.6601    FIDELITY BOND

(1) The amount of fidelity bond coverage required by 33-3-307, MCA, for officers of a domestic insurer must be calculated as follows:

(a) The sum of the calculations in (i) and (ii) equals the amount of the insurer's exposure index:

(i) 5% of the insurer's admitted assets, as reported in the insurer's most recent annual statement; plus

(ii) 10% of the insurer's gross income. Gross income equals the total of direct and assumed premiums written plus investment income collected, as reported in the insurer's most recent annual statement.

(b) The amount of the exposure index, as calculated in (1) (a) , determines the acceptable range of the amount of the required fidelity bond, according to the following table:

 

Exposure Index			Amount of Bond
$1,000	-	$25,000	$15,000	-	$25,000
25,000	-	125,000	25,000	-	50,000
125,000	-	250,000	50,000	-	75,000
250,000	-	500,000	75,000	-	100,000
500,000	-	750,000	100,000	-	125,000
750,000	-	1,000,000	125,000	-	150,000
1,000,000	-	1,375,000	150,000	-	175,000
1,375,000	-	1,750,000	175,000	-	200,000
1,750,000	-	2,125,000	200,000	-	225,000
2,125,000	-	2,500,000	225,000	-	250,000
2,500,000	-	3,325,000	250,000	-	300,000
3,325,000	-	4,175,000	300,000	-	350,000
4,175,000	-	5,000,000	350,000	-	400,000
5,000,000	-	6,075,000	400,000	-	450,000
6,075,000	-	7,150,000	450,000	-	500,000
7,150,000	-	9,275,000	500,000	-	600,000
9,275,000	-	11,425,000	600,000	-	700,000
11,425,000	-	15,000,000	700,000	-	800,000
15,000,000	-	20,000,000	800,000	-	900,000
20,000,000	-	25,000,000	900,000	-	1,000,000
25,000,000	-	50,000,000	1,000,000	-	1,250,000
50,000,000	-	87,500,000	1,250,000	-	1,500,000
87,500,000	-	125,000,000	1,500,000	-	1,750,000
125,000,000	-	187,500,000	1,750,000	-	2,000,000
187,500,000	-	250,000,000	2,000,000	-	2,250,000
250,000,000	-	333,325,000	2,250,000	-	2,500,000
333,325,000	-	500,000,000	2,500,000	-	3,000,000
500,000,000	-	750,000,000	3,000,000	-	3,500,000
750,000,000	-	1,000,000,000	3,500,000	-	4,000,000
1,000,000,000	-	1,250,000,000	4,000,000	-	4,500,000
1,250,000,000	-	1,500,000,000	4,500,000	-	5,000,000

History: Sec. 33-3-307, MCA; IMP, Sec. 33-3-307, MCA; NEW, 1997 MAR p. 2180, Eff. 12/2/97.