Chapter 8: Bonding, Burglary

and Holdup Insurance

The USBC maintains a policy of bonding, burglary and holdup insurance for all chartered associations and the

officers of certified leagues. The bonding, burglary and holdup insurance coverage described in this chapter

is available through a policy of insurance issued to the USBC by an independent licensed insurance company.

The policy covers:

1. Misuse of Funds. A shortage attributable to dishonesty by a league or association officer.

2. The taking of funds from an officer, or the centers messenger, by violence or threat of violence.

3. Funds taken through the forcible entry into the premises or locked receptacle, where the funds are kept,

of an officer or the center’s messenger. There must be visible evidence of forcible entry. An on-site police

report is required.

Any officer authorized by the league or association to sign contracts and act as a signatory on any account

must be a minimum of 18 years of age.

No insurance coverage is available except as specifically set forth in the policies of insurance purchased by

the USBC.

The surety company shall not be held liable for any loss which, on investigation in a given case, may have

existed prior to the time the bond or insurance became effective.

The policies of insurance do not cover funds frozen through insolvency or liquidation of any financial institution.

Further, the policies of insurance do not cover loss of funds due to bowling center insolvency or liquidation.

Dishonest Acts of League Officer

Leagues Officers are automatically bonded for up to $10,000. Leagues with prize funds in excess of $10,000

receive full coverage, provided the full amount of the prize fund is indicated on the league certification

application when submitted to the local association.

The following conditions govern the method by which leagues must handle funds to qualify for 100 percent

protection of any loss caused by the dishonest act of a league officer:

of the schedule (30 days for summer leagues), counting the first day of competition.

service in the name of the league. The banking or credit institution must be a member of the Federal

Deposit Insurance Corporation or its equivalent.

all withdrawals. Two members of an immediate family cannot cosign for withdrawals. If the president is

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98 – Chapter 8: USBC Bonding, Burglary and Holdup Insurance

not the cosigner for withdrawals, his/her name must be identified with the account to enable the president

to personally verify the amount on deposit.

immediate family members.

(See Rule 102c)

the arithmetic necessary to determine how much should be on deposit. If the account is

found to be short, the president must report the shortage immediately to USBC Headquarters

for possible action under the bonding insurance policy.

Failure to meet the provisions of the policies of insurance will result in a 50 percent reduction

of any documented loss.

The bond and insurance shall remain in force for continuing leagues not only to the end of the season, but

for the so-called off season until the new season begins.

If the league application is not received by the association within the 42 (winter) or 30 (summer) day grace

period, the bonding and insurance become effective when the application and dues are received by the

association, and only for such funds as on deposit at that time, plus funds deposited thereafter. Failure to

submit the league application within the stated time voids protection for all money collected prior to the date

the league application was received.

In-Center Banking Service

The coverage afforded in the policies of insurance is extended to leagues utilizing in-center deposit services

provided:

The center may maintain a single account for all leagues; however a separate accounting must be

maintained for each league.)

registered with the center in order for the league to withdraw its funds.

account verifying the amount on deposit so the president can personally verify the league balance

monthly as required by Rule 102c.

USBC Playing Rules and Commonly Asked Questions

Chapter 8: USBC Bonding, Burglary and Holdup Insurance – 99

Associations

USBC affiliated associations, with the exception of those located on US Military Bases located in foreign

countries, automatically are covered for $10,000 and can obtain additional coverage without cost upon

written request to USBC Headquarters or through the WinLABS program.

The policies of insurance provide coverage for misuse of funds by an association officer and bonds all officers

and directors of the association for loss of funds due to burglary and/or holdup. Coverage is further extended

to a non-board member appointed by the association manager as the tournament manager of a required

championship tournament.

The following conditions govern the method by which associations must handle its funds to qualify for 100

percent protection of any loss caused by the dishonest act of an association officer:

association.

stamps should not be used nor should checks be pre-signed.

Failure to meet any of the conditions of the policies of insurance will result in a 50 percent

reduction of any documented loss.

Burglary and Holdup Insurance

The funds of each USBC league and affiliated association are insured against loss by burglary and holdup

as follows:

of an officer or the center’s messenger. There must be visible evidence of forcible entry. An on-site police

report is required.

banking service.

(Leagues with large prize funds should only pay out a maximum of $10,000 in cash with the balance

paid in checks.)

In the event the league or association fails to deposit the funds in a recognized banking or credit institution

in the name of the organization as specified, the insurance company will be liable for only one week’s receipts

when a loss occurs due to burglary or holdup.

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100 – Chapter 8: USBC Bonding, Burglary and Holdup Insurance

The policies of insurance DO NOT cover loss by fire, mysterious disappearance or funds left unattended.

Losses and Claims

Any loss should be reported to USBC Headquarters for guidance within 15 days.

Any attempt to regain funds through an agreement between the principal and offended parties without

authorization from USBC Headquarters creates a legal situation which places the league’s right of recovery

under the bond in jeopardy.

Any officer who misuses the funds of a league, local or state association shall be subject to suspension from

USBC membership. Likewise, the surety company will not extend coverage to any individual who misused

funds in the past or has been convicted of a felony.

The president also may be liable for suspension from USBC membership for failing to make the monthly

verification.

USBC Playing Rules and Commonly Asked Questions