New ISO Program Protects Financial Institutions Against Losses From Employee Dishonesty, Forgery and Other Perils

January 1, 2011 / 2 min read

JERSEY CITY, N.J., Feb. 2, 2005 — ISO has introduced a new insurance program to protect financial institutions from employee dishonesty, forgery, computer crime, kidnap and ransom, and safe-deposit liability, enhancing its offering of fidelity and crime products.

The Financial Institutions Program includes policy forms and endorsements, underwriting rules, loss costs (projections of future claims) and an experience and schedule rating plan. It is primarily designed for banks and savings institutions, but some policy forms can be written for any financial institution.

ISO has filed the program, which takes effect June 1, for regulatory approval in all U.S. jurisdictions.

"Our new line of business will help financial institutions protect themselves from exposure to employee crime and related perils," said Kevin B. Thompson, senior vice president of ISO's Insurance Services unit. "We created this program in response to customers' requests for supporting the fidelity line of insurance with a full range of products. Our new program supports five separate policies and allows insurers to customize coverage for financial services customers."

Coverages
The Financial Institutions Program consists of five separate policies:

Crime Policy for Banks and Savings Institutions (aggregate form)
Crime Policy for Banks and Savings Institutions (non-aggregate form)
Available in both non-aggregate and aggregate-limit versions, the policy contains 14 separate insuring agreements that cover a host of perils related to banking. The fidelity insuring agreement is mandatory, covering losses from employee dishonesty (embezzlements) and fraudulent loans and trading.
Computer Crime Policy
Provides three separate insuring agreements — computer fraud, data processing service and electronic data/computer programs agreements. The first coverage is mandatory.
Kidnap/Ransom and Extortion Policy
Of the four separate insuring agreements, kidnap/ransom and extortion–direct loss is mandatory. Other coverages include in-transit delivery of property, kidnap/ransom and extortion–expenses incurred, and detention or hijack.
Combination Safe Depository Policy
Policy provides two optional insuring agreements — liability of depository and loss of customers' property — for any financial institution that provides safe-deposit boxes.

ISO will expand the program in the future to include policies and advisory rating information for other financial institutions, such as brokerage firms, insurance carriers and finance companies.

About ISO
ISO is a leading provider of products and services that help measure, manage and reduce risk. ISO provides data, analytics and decision-support solutions to professionals in many fields, including insurance, finance, real estate, health services, government and human resources. Professionals use ISO's databases and services to classify and evaluate a variety of risks and detect potential fraud. In the U.S. and around the world, ISO's services help customers protect people, property and financial assets.

Release: Immediate

Contacts:
Giuseppe Barone / Erica Helton
MWW Group (for ISO)
201-507-9500
gbarone@mww.com / ehelton@mww.com