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Bond Terms
If you ordered a bond, it is issued through your association, and the terms of that bond are reproduced below. Wallet Degree is a distributor only! The bond, the terms below, and any questions or terms or filing issues, should be addressed to your professional association. These are reprinted here for your convenience only.
Honor Bond Terms and Conditions
By purchasing an honor bond ("HB" herein) through my association, I agree to these terms and conditions and certify that I am of legal age to agree to them, and that I have done so without duress, and with the full freedom and ability to consult an attorney before accepting these terms. This is an honor/ theft bond ONLY, and ONLY covers convicted felony theft by the bondholder with 12 months of actual prison time not including parole.
This bond is called an honesty or honor bond. This bond is NOT a financial instrument; NOT an insurance product; NOT a surety bond or product; NOT a performance bond; NOT a guarantee, NOT a bail, completion or promissory bond; and not proof or protection against liability, quality problems, performance, lawsuits, financial risks, business risks, or any other causes of actions beyond the specific, narrow honesty/ convicted felony theft purpose of the bond, and you specifically indemnify and hold harmless your association against any claims, suits or actions against you or your association outside these narrow terms, exclusions and limits.
The sole purpose and scope of this bond, which creates limits and exclusions in all other areas, is to support your honesty and protect your customers against specific felonious property theft by you, within the limits stated herein. Your customer can only collect a percent, up to the face value of your bond (see claims below), only if you are convicted of felonious property theft, including a year or more of actual incarceration, in a criminal court, not including parole.
Claims are further limited to felonious conviction for direct theft of property by you, limited by your deductible, void if incorrect, incomplete or misleading information is found on your application, or if your association membership is not in good standing, or if you lied/ distorted the truth to obtain the employment/ assignment in question. Your HB does not include cash theft, investment theft, ponzi schemes, damage to property, life or limb, excluded items (see below and above), misrepresentation, poor or incomplete performance, conveying information to others, theft by other third parties whether related to you or not, or actions by your employees, contractors, independent contractors, assistants, helpers or subcontractors. Claims are completely subordinate to any insurance collectible from other insurers, and are not valid if you have any relationship with your customer including blood, marriage, friendship or business. Bond requests will only be evaluated after ALL other insurance is satisfied.
Your bond is issued by your professional association, who has sole liability for claims. All claims must be made within 5 business days of your conviction, or unsuccessful appeal, or completion of 12 months of incarceration, or failure of insurance collection, or failure to recover the property, whichever comes last. The bond payment amount will be lowered by the value of any recovered property, regardless of disposition or return of such property. Your HB is only in effect as long as you are a current, good standing member of your association, with dues fully paid, current and not late, and meeting the professional standards of that association. If your status is in any way revoked, compromised, expired, rejected or terminated, for any reason, your HB is invalid, null and void, and you are fully responsible for any claims, and agree to indemnify and hold harmless your association from any claims, actions or suits.
Claims by your customers are limited to 10% of the appraised value (current or replacement value, whichever is lower), up to the depreciated value, up to the face value of your bond, by a third party association appraiser, only of any property not recovered, and only for property you are specifically feloniously convicted of stealing, and only after payment by any other insurance, minus a $5,000 deductible payable by you or your estate or defense attorneys, before any court or attorney's costs in defending your case, and excluding the items and categories listed herein. Your HB does not cover damage to property, whether stolen or not. In accepting your bond, you agree to pay all our attorney's fees if we are sued for your felonious actions. Any attempt to collect under this bond for any reason or item(s) excluded in these terms, will immediately end all your rights, and your customer's rights, under this bond. You agree that your attorney will make all information about your defense available to the association issuing this bond, and if you have grounds for appeal, but it is not filed, this bond is null and void.
Exclusions also include any property stolen before or after a two week period in which you actually performed work for your customer, which must be verified by a written work agreement; work performed without proper licenses or permits; work performed with misrepresentation; work performed for cash; customers related to you in any way including friendship or association; uninsured customers; and customers negligent or complicit in the theft. Specifically excluded property items include jewelry or loose gemstones or diamonds; firearms and ammunition; coins and stamps; currency or negotiable securities, including cash and cash equivalents; artwork or sculptures; collectibles and antiques; vehicles; personal memorabilia; pets and animals; business items and property; items covered by a rider; intangibles such as information, data, or passwords/ account information etc.; electronics and appliances except for non business computers, and excluding their data and information value or uses; rare or unique items the value of which is tied to scarcity or rarity, including but not limited to books and other antiques. Appraisal shall be base on the LOWER of current or replacement value.
This is the sole agreement between the parties, and represents your sole rights, and the rights of your customers, under your bond. All other elements of these terms will remain valid even if any others are deemed unenforceable. The venue for any action related to this bond shall be South Dakota. No association employees, distributors, agents, investors, partners, sellers, board members or other parties related or unrelated shall have any personal liability for this bond-- it is strictly and solely the responsibility of your professional association.
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