fidelity and guaranty insurance

A contract of fidelity or guaranty insurance is one whereby the insurer, for a valuable consideration, agrees, subject to certain conditions, to indemnify the insured against loss consequent upon the dishonesty or default of a designated person. Guaranty insurance, used in its broad sense, also includes credit insurance, and title insurance, as well as the numerous forms of surety bonds. The contract partakes of the nature both of insurance and of suretyship. Hence, even in the absence of terms so providing, the contract is avoided by the failure of the insured to disclose to the insurer, at the time of making the contract, any known previous acts of dishonesty on the part of the employee, or any dishonest practices that may occur during the currency of the policy. But the insured is not required to give notice of mere irregularities not involving moral turpitude; nor, in the absence of agreement to that effect, does the insured owe to the insurer any duty of watching the conduct and accounts of the employee concerned

Black's law dictionary. . 1990.

Look at other dictionaries:

  • fidelity guaranty insurance — A contract whereby one, for a consideration, agrees to indemnify another against loss arising from the want of integrity or fidelity of employees or persons holding positions of trust. People ex rel. Kasson v Rose, 174 Ill 310, 51 NE 246. In… …   Ballentine's law dictionary

  • insurance — A contract whereby, for a stipulated consideration, one party undertakes to compensate the other for loss on a specified subject by specified perils. The party agreeing to make the compensation is usually called the insurer or underwriter; the… …   Black's law dictionary

  • insurance — A contract whereby, for a stipulated consideration, one party undertakes to compensate the other for loss on a specified subject by specified perils. The party agreeing to make the compensation is usually called the insurer or underwriter; the… …   Black's law dictionary

  • fidelity bond — Contract of fidelity insurance. Runcie v. Corn Exchange Bank Trust Co., Sup., 6 N.Y.S.2d 616, 620. A guaranty of personal honesty of officer furnishing indemnity against his defalcation or negligence. Phillips v. Board of Education of Pineville,… …   Black's law dictionary

  • guaranty — guar·an·ty / gar ən tē, gär / n pl ties [Old French garantie, from garantir to guarantee, from garant warrant] 1: a pledge to pay another s debt or to perform another s duty in case of the other s default or inadequate performance compare letter… …   Law dictionary

  • insurance — in·sur·ance /in shu̇r əns, in ˌshu̇r / n 1: the action, process, or means of insuring or the state of being insured usu. against loss or damage by a contingent event (as death, fire, accident, or sickness) 2 a: the business of insuring persons or …   Law dictionary

  • fidelity bond — see bond 1a Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. fidelity bond …   Law dictionary

  • fidelity — fi·del·i·ty /fə de lə tē, fī / n: the quality or state of being faithful or loyal; esp: loyalty to one s spouse in refraining from adultery and sometimes in submitting to a spouse s reasonable sexual desires Merriam Webster’s Dictionary of Law.… …   Law dictionary

  • guaranty — 1. v. To undertake collaterally to answer for the payment of another s debt or the performance of another s duty, liability, or obligation; to assume the responsibility of a guarantor; to warrant. See guaranty noun, 2. n A collateral agreement… …   Black's law dictionary

  • guaranty — 1. v. To undertake collaterally to answer for the payment of another s debt or the performance of another s duty, liability, or obligation; to assume the responsibility of a guarantor; to warrant. See guaranty noun, 2. n A collateral agreement… …   Black's law dictionary

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