Section 13 requires that the amount of the bond be fixed at the
beginning of each calendar, policy or other fiscal year, as the case may
be, which constitutes the reporting year of the plan for purposes of the
reporting provisions of the Act. The amount of the bond shall be not
less than 10 per centum of the amount of funds handled, except that any
such bond shall be in at least the amount of $1,000 and no such bond
shall be required in an amount in excess of $500,000: Provided, That the
Secretary, after due notice and opportunity for hearing to all
interested parties, and after consideration of the record, may prescribe
an amount in excess of $500,000, which in no event shall exceed 10 per
centum of the funds handled. For purposes of fixing the amount of such
bond, the amount of funds handled shall be determined by the funds
handled by the person, group, or class to be covered by such bond and by
their predecessor or predecessors, if any, during the preceding
reporting year, or if the plan has no preceding reporting year, the
amount of funds to be handled during the current reporting year by such
person, group, or class, estimated as provided in the regulations in
this part. With respect to persons required to be bonded, section 13
shall be deemed to require the bond to insure from the first dollar of
loss up to the requisite bond amount and not to permit the use of
deductible or similar features whereby a portion of the risk within such
requisite bond amount is assumed by the insured. Any request for
variance from these requirements shall be made pursuant to the
provisions of section 13(e) of the Act.
