SURETY AND FIDELITY BONDS a. The PROVIDER shall obtain a fidelity bond covering each person employed by the PROVIDER who handles funds under this Provider Agreement, including persons authorizing payment of such funds. The fidelity bond shall provide for indemnification of losses occasioned by (1) any fraudulent or dishonest act or acts committed by any of the PROVIDER’S employees or agents acting alone or in collusion with others; and (2) the failure of the PROVIDER or its employees to perform faithfully any duty or to properly account for all monies and property received or entrusted by virtue of the employee’s position or employment. The fidelity bond shall be in an amount equal to twenty five percent 25% of the total Provider Agreement amount unless the Provider Agreement amount is less than one hundred thousand dollars $100,000.00 per year. In such cases a minimum bond of ten thousand dollars $10,000.00 will be sufficient. The PROVIDER shall submit a copy of the bond to the DEPARTMENT within thirty (30) days of the effective date of this Provider Agreement. The bond shall include Third Party coverage for property of clients. If the PROVIDER is a sole proprietorship or partnership, the proprietor or the partners must be considered employees under the terms of the bond. Loss payment by the bonding company shall be made to the DEPARTMENT (i.e., State of New Mexico Department of Health shall be named as Loss Payee). The PROVIDER shall provide the DEPARTMENT with a Certificate of Insurance evidencing coverage. The certificate shall allow for thirty (30) days written notice of bond cancellation. The bond shall remain in effect for the term of the Provider Agreement plus thirty (30) days. In lieu of a Third-Party Fidelity bond, the DEPARTMENT reserves the right to require a financial guarantee bond (i.e., surety bond) naming the DEPARTMENT as obligee and, in an amount, to be determined. The DEPARTMENT retains the authority to waive either of these bond requirements.
b. The PROVIDER shall maintain current insurance policies as required by the DEPARTMENT at the PROVIDER agency. All required documentation maintained at the PROVIDER agency is subject to audit by the DEPARTMENT.
SURETY AND FIDELITY BONDS a. The PROVIDER shall obtain a fidelity bond covering each person employed by the PROVIDER who handles funds under this Provider Agreement, including persons authorizing payment of such funds. The fidelity bond shall provide for indemnification of losses occasioned by (1) any fraudulent or dishonest act or acts committed by any of the PROVIDER’S employees or agents acting alone or in collusion with others; and (2) the failure of the PROVIDER or its employees to perform faithfully any duty or to properly account for all monies and property received or entrusted by virtue of the employee’s position or employment. The fidelity bond shall be in an amount equal to twenty five percent 25% of the total Provider Agreement amount, unless the Provider Agreement amount is less than one hundred thousand dollars $100,000.00 per year. In such cases a minimum bond of ten thousand dollars $10,000.00 will be sufficient. The PROVIDER shall submit a copy of the bond to the DEPARTMENT within thirty
