Regulatory Alerts2018-04-01
Circular 5: Court Ruling on Fidelity Cover
The Registrar of Mutual Benefit Societies issued this circular to direct member organizations to a recent court ruling concerning the validity of fidelity insurance. The judgment establishes that principals remain liable and contracts voidable for fraudulent non-disclosure by agents, even when the principal lacks direct knowledge of the concealment. Member societies are instructed to obtain the full ruling and consult their insurers to amend policies and prevent fidelity coverage from being invalidated on these grounds.
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