ABA INSURANCE PROGRAM OFFERS $5 MILLION STAMP SIGNATURE GUARANTEE BOND FOR COMMUNITY BANKS

WASHINGTON, March 6 – The American Bankers Association today announced that the ABA-sponsored insurance program, underwritten by Progressive Casualty Insurance Co., will now provide limits up to $5 million on STAMP Signature Guaranty Bonds for community banks.

Banks participating in the Securities Transfer Agents Medallion Program (STAMP), the endorsed program of the Securities Transfer Association, are required to maintain Signature Guarantee Bonds as a guaranty of indemnification to transfer agents.  Historically, the maximum limit available in the market has been $2 million. Effective April 2, banks that want to guarantee securities with a value greater than $2 million will have to obtain higher surety bond limits.

"We're pleased to provide higher limits to our community banks to allow them to respond to their customers' needs," said Edward L. Yingling, ABA president and CEO.

The ABA-sponsored insurance program, which celebrates its 20-year anniversary this month, recently introduced a Privacy Liability product to complement its offering of directors and officers' liability, financial institution bond, Internet banking liability, employment practices liability and other related insurance products for community banks.

The program will also deliver checks this month to 900 ABA member banks sharing $4.5 million in profits from the American Bankers Professional and Fidelity Insurance Company, the bank-owned, mutual insurance company that reinsures the program.

The American Bankers Association, on behalf of the more than two million men and women who work in the nation's banks, brings together all categories of banking institutions to best represent the interests of

this rapidly changing industry.  Its membership-which includes community, regional and money center banks and holding companies, as well as savings associations, trust companies and savings banks-makes ABA the largest banking trade association in the country. 

The American Bankers Professional and Fidelity Insurance Company is a bank-owned, mutual insurance company that reinsures coverages underwritten by the Progressive Casualty Insurance Company (Progressive) in Mayfield Village, Ohio.  Progressive has earned an "A+" (Superior) rating from A.M. Best Company and can be accessed by independent insurance agents.  An A+ rating by Best's reflects the strength of a company's balance sheet, operating performance and business profile. For more information call Judi Kovach at (800) 274-5222 or visit the Web site at www.banks.progressive.com.

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