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In the fidelity bond the company agrees to reimburse the employer for any pecuniary loss, not exceeding a certain specified sum, which may be sustained by reason of the dishonesty of the employee, amounting to embezzlement or larceny. The bond usually provides that the embezzlement must have been committed during the term of the bond, or any renewal thereof; and that it must be discovered during the term "or within three months thereafter, or within three months from the death, or dismissal, or retirement of the employee from service, within the period of this bond, whichever of these events shall happen first." The employer agrees to give immediate notice to the company of the discovery of any dishonesty on the part of the bonded employee, and to furnish full particulars within a given time. He also agrees to furnish the company with every aid and assistance possible, not pecuniary, which will help in bringing the wrongdoer to justice. In case more than one bond covers the individual in question, the company will pay the loss only in the proportion that its bond bears to the total sum of all the bonds, whether these are available or not.

Special mention is usually made in the bond of certain types of losses for which the company assumes no liability. Among these are losses resulting from mere error of judgment, or injudicious exercise of discretion on the part of the bonded employee, or from any act done or left undone by the employee in pursuance of instruction from the employer. Nor is the company liable for any loss by robbery unless the employee directly participated or connived in the same, or for any balance that the employee may owe the employer if the same has accrued prior to the date of the policy, and which may be discovered during its term. If the duties and responsibilities of the bonded employee are in any way increased and enlarged during the continuance of the bond, without the company's consent, liability for loss at once ceases, it being the true meaning of the bond that the

FIG. 14.-Sample Form of Employer's Statement.

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The Company desires to have answers to the following questions, and the answers will be taken as the basis of the bond if issued.

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Very respectfully yours,

ANSWERS.

.190

President.

(OVER)

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It is agreed that the above answers are to be taken as conditions precedent and as the basis of the said bond applied for, or any renewal or continuation of the same, or any other bond substituted in place thereof, except as specifically changed, that may be issued by THE UNITED STATES FIDELITY AND GUARANTY COMPANY to the undersigned, upon the person above named.

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This form must be returned to the Home Office, Baltimore, Md., before bond will be issued.

FIG. 15.-Sample Form of Fidelity Application.

No....

Please anewer fully ALL questions asked below. Confidence must be reposed in the Company. If confidence le expected In return. All information is used solely by the Company in judging the risk, and will be treated as strictly confidential.

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6 Give details and amounts of any debts or liabilities you may have, and encumbrances on property.......

7 Give number and relationship of persons you entirely support...

8 If you are surety or endorser, state amount and particulars

9 If ever bankrupt or insolvent state when with details of settlement made.

10 If ever discharged from any situation or deprived of a commission or other engagement, state particulars with dates

11 If ever in business for yourself, give periods with particulars, also when and why discontinued.

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22 State salary or compensation received in this employment and how paid.

23 Give amount and particulars of any other income you have.

24 Amount of bond herein applied for $. ---....... Premium $ Who pays premium?.. 25 Give date bond is to go in force.

Self or employer.

If you furnish other surety or security of any kind to the above

employer in addition thereto give its amount and nature...............

26 If responsible for bad credit losses in above employment, or share in profits or losses of employer's business give particulars

[OVER]

APPLICANT MUST ACCOUNT, WITH PARTICULARS, FOR ANY LAPSE IN TERMS OF PREVIOUS EMPLOYMENT.

Give names and addresses of previous employers, positions occupied, time engaged with each and reasons for leaving. This data is important and replies must be full and complete. Be sure to give number of street in city addresses. If there are periods when you were unemployed please state disposition of time.]

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GIVE AT LEAST FIVE. WRITE NAMES AND ADDRESSES PLAINLY.

Do not give former employers, relatives, nor officers or fellow-employe of the service in which you are engaged.

NAMES OF REFERENCES

OCCUPATION.

P. O. ADDRESS.

I hereby declare that the above replies and statements are true and correct; and I hereby agree for myself, my heirs and adminstrators, in consideration of THE UNITED STATES FIDELITY AND GUARANTY COMPANY becoming surety for me, and issuing the Bond of Security hereby applied for, or any renewal thereof, or any further or other Bond or Security hereby issued by the said Company on my behalf, in my present or any other position in this service, to protect and indemnify the said Company against any loss, damage or expense that it may sustain or become liable for in consequence of such guarantee on my behalf by said Company, and forthwith after the said Company shall have paid the party or parties entitled to the same, any money under or by reason of such guarantee, to repay the said Company the amount so paid, and all other losses, costs, dainages and expenses, if any. that it shall have incurred or become liable for in consequence of such guarantee. And I do further agree that the vouchers, or other evidence of payment of such loss paid by said Company to the employer under such obligation, together with vouchers or other evidence of payment of all costs and expenses whatever, incurred by said THE UNITED STATES FIDELITY AND GUARANTY COMPANY in adjusting said loss, shall be taken as conclusive evidence against me and my estate of the fact and extent of my liability under said obligations to the said THE UNITED STATES FIDELITY AND GUARANTY COMPANY.

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