West Virginia Code 31I-1-12 – Fidelity bonds; insurance
(a) The directors or managers of a licensed private trust company shall procure and maintain fidelity bonds on all active officers, directors, managers, members acting in a managerial capacity, and employees of the company, regardless of whether they receive a salary or other compensation from the company, in order to indemnify the company against loss because of a dishonest, fraudulent, or criminal act or omission on their part, whether acting alone or in combination with other persons.
Terms Used In West Virginia Code 31I-1-12
- Capital account: means the aggregate value of unimpaired capital stock based on the par value of the shares, plus any unimpaired surplus and undivided profits or retained earnings of a private trust company organized as a corporation. See West Virginia Code 31I-1-3
- Designated relative: means a common ancestor of a family, who may be a living or deceased person, who is the individual to or through whom the family members are related, and who is so designated in the application for a license. See West Virginia Code 31I-1-3
- Licensed private trust company: means a private trust company that operates in accordance with this article and has been issued a license that has not been revoked or suspended by the State Auditor. See West Virginia Code 31I-1-3
- Private trust company: means a corporation or limited liability company that:
(A) Is exclusively owned by one or more family members. See West Virginia Code 31I-1-3
(b) Each fidelity bond shall be issued in an amount of at least $1,000,000.
(c) In lieu of the fidelity bonds required under subsection (a) of this section, a licensed private trust company may increase its capital account required under §31I-1-4(b) of this code by $1,000,000 so that if it has:
(1) One designated relative, then it is organized or operated with a capital account of at least $1,250,000;
(2) Two designated relatives, then it is organized or operated with a capital account of at least $1,350,000; or
(3) Three designated relatives, then it is organized or operated with a capital account of at least $1,450,000.
(d) The licensed private trust company shall also procure and maintain an errors and omissions insurance policy of at least $1,000,000 in which it is listed as the insured to cover the acts and omissions of officers, directors, managers, and members acting in a managerial capacity, regardless of whether the person receives a salary or other compensation from the company.
(e) A private trust company or licensed private trust company may also procure and maintain other insurance policies necessary or desirable in connection with the business of the company, including, but not limited to, one or more casualty insurance policies.
(f) A private trust company that is not a licensed private trust company may procure and maintain fidelity bonds as described in this section.
(g) A private trust company that is not a licensed private trust company may procure and maintain errors and omissions insurance coverage as described in this section.