[Code of Federal Regulations]
[Title 29, Volume 9]
[Revised as of July 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 29CFR2580.412-10]

[Page 599-600]
 
                             TITLE 29--LABOR
 
 CHAPTER XXV--EMPLOYEE BENEFITS SECURITY ADMINISTRATION, DEPARTMENT OF 
                                  LABOR
 
PART 2580_TEMPORARY BONDING RULES--Table of Contents
 
                  Subpart B_Scope and Form of the Bond
 
Sec. 2580.412-10  Individual or schedule or blanket form of bonds.

    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

[[Page 600]]

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.