Section 13 provides that ``any bond shall be in a form or of a type
approved by the Secretary, including individual bonds or schedule or
blanket forms of bonds which cover a group or class''. Any form of bond
which may be described as individual, schedule or blanket in form or any
combination of such forms of bonds shall be acceptable to meet the
requirements of section 13, provided that in each case, the form of the
bond, in its particular clauses and application, is not inconsistent
with meeting the substantive requirements of the statute for the persons
and plan involved and with meeting the specific requirements of the
regulations in this part. Basic types of bonds in general usage are:
(a) Individual bond. Covers a named individual in a stated penalty.
(b) Name schedule bond. Covers a number of named individuals in the
respective amounts set opposite their names.
(c) Position schedule bond. Covers each of the occupants of
positions listed in the schedule in the respective amounts set opposite
such positions.
(d) Blanket bonds. Cover all the insured's officers and employees
with no schedule or list of those covered being necessary and with all
new officers and
employees bonded automatically, in a blanket penalty which takes two
forms--an aggregate penalty bond and a multiple penalty bond which are
described below:
(1) The aggregate penalty blanket bond such as the Commercial
Blanket Bond; the amount of the bond is available for dishonesty losses
caused by persons covered thereunder or losses in which such person is
concerned or implicated. Payment of loss on account of any such person
does not reduce the amount of coverage available for losses other than
those caused by such person or in which he was concerned or implicated.
(2) The multiple penalty bond such as the Blanket Position Bond
giving separate coverage on each person for a uniform amount--the net
effect being the same as though a separate bond were issued on each
person covered thereunder and all of such bonds being for a uniform
amount.
Note: For the purpose of section 13, blanket bonds which are either
aggregate penalty or multiple penalty in form shall be permissible if
they otherwise meet the requirements of the Act and the regulations in
this part.
Bonding, to the extent required, of persons indirectly employed, or
otherwise delegated, to perform functions for the plan which are
normally performed by ``administrators, officers, or employees'' as
described in Sec. 2580.412-3(d) may be accomplished either by including
them under individual or schedule bonds or other forms of bonds meeting
the requirements of the Act, or naming them in what is known under
general trade usage as an ``Agents Rider'' attached to a Blanket Bond.
