Fidelity and E&O Requirements. The PFI or Servicer is responsible for obtaining and maintaining, at all times, fidelity insurance and errors and omissions (E&O) insurance in accordance with the requirements of this section. PFIs or Servicers may obtain coverage under a mortgage bankers blanket bond policy, a savings and loan blanket bond policy, or a bankers blanket bond policy. Insurer Rating The insurer(s) must be: • Rated B+ or better by the A. M. Best Company; or • Affiliated with Xxxxx'x of London. Parent Institution Coverage When the parent company of a PFI or Servicer has insurance that meets the MPF Bank's requirements, the MPF Bank will accept that insurance for the PFI or Servicer if: • The parent's insurer(s) names the PFI or Servicer as joint insured with the parent; • The parent’s insurer(s) cannot prescribe, proscribe, or defer the PFI’s Origination Obligations and Servicer’s Servicing Responsibilities; and • The parent’s insurance policy cannot exclude from coverage any of the PFI’s Origination Obligations and/or the Servicer’s Servicing Responsibilities. Required Documentation and Provisions (3/28/17)35 Documentation of fidelity and E&O insurance coverage must be on a customary insurance certificate form. If the PFI or Servicer is supervised by a government regulator, an insurance certificate form acceptable by the government regulator is acceptable. If the PFI or Servicer obtains an endorsement to the bond or policy or obtains additional coverage, it must also maintain a copy of the endorsement or a description of the additional coverage, unless the information can be summarized substantively on the insurance certificate. The insurance certificate should indicate at a minimum, the following: • The insurer’s name; • The bond or policy number; • The named insured; • The type and amount of coverage (specifying whether the insurer’s liability limits are on an aggregate loss or per mortgage basis); • The effective date of the coverage; and • The deductible amount. Each fidelity bond or E&O policy must include the following provisions when they can be obtained: • List the applicable MPF Bank as an additional insured or loss payee and provide for the applicable MPF Bank to be named as a loss payee on drafts the insurer issues to pay for covered losses incurred by the applicable MPF Bank; • Provide the applicable MPF Bank with the right to file a claim directly with the insurer if the PFI or Servicer fails to file a claim for a covered loss incurred by the applicable MPF B...
Fidelity and E&O Requirements. The PFI or Servicer is responsible for obtaining and maintaining, at all times, fidelity insurance and errors and omissions (E&O) insurance in accordance with the requirements of this section. PFIs or Servicers may obtain coverage under a mortgage bankers blanket bond policy, a savings and loan blanket bond policy, or a bankers blanket bond policy.
