New Jersey Administrative Code
Title 3 - BANKING
Chapter 12 - REGISTRAR AND TRANSFER AGENTS
Subchapter 4 - REQUIRED INSURANCE
Section 3:12-4.1 - Minimum fidelity insurance coverage

(a) A qualified corporation shall obtain a bankers or stockbrokers blanket bond which covers:

(b) The bond shall contain a provision that it shall not be cancellable for any cause unless notice of intention to cancel is filed in the Department at least five days prior to the day upon which cancellation shall take effect.

(c) The bond shall provide for limits of liability for Clause A, dishonest or fraudulent acts, in accordance with the minimum amounts set forth in the following Schedule A. For the first $ 5 million of prescribed primary Clause A coverage, the limits of liability for Clause E, securities forgery, shall not be less than 25 per cent of the minimum amounts of primary coverage prescribed in Schedule A or $ 250,000 whichever is less. For each additional $ 1 million of prescribed primary coverage required, the limits of liability for Clause E shall be increased $ 150,000 up to a maximum of $ 1 million. However, a stock transfer agent errors and omissions insurance policy of equal dollar value coverage may be substituted for a Clause E insuring agreement:

SCHEDULE "A"

(d) For volume and market values in excess of table add $ 100,000 to insurance amount maintained for each additional 10,000 shareholders and add $ 100,000 to insurance amounts maintained for each $ 10.00 market value increment, up to a maximum of $ 10 million.