Pub. 1 2012 Issue 3

18 l e a d i n g a d v o c a t e f o r t h e b a n k i n g i n d u s t r y i n k a n s a s Phone (785) 228-0000 - Fax (785) 228-0079 1220 SW Executive Drive - 66615 P.O. Box 1654, Topeka, KS 66601 Rated A++ (Superior) By A.M. Best For more information, give us a call at (785) 228-0000. A Live, Intelligent Human Being Will Always Answer The Phone! The Kansas Bankers Surety Company A Member Of The Berkshire Hathaway Inc. Group of Insurance Companies For over 100 years, we have been serving Community Banks with: • Superior and Innovative Products • Financial Institution Crime Bond • Directors & Officers Indemnity • Bank Employment Practices Defense Policy • Check Kiting Fraud Indemnification Policy • Internet Banking Theft Catastrophe Bond • Banking Privacy Liability Policy • Cost of Replacing Compromised Bank Cards Policy • Competitive Premiums • Realistic Underwriting • Prompt Claims Service EXPERIENCE...There is no substitute! Are you looking for the calm in the storm?... additional liability above the federal regulation requirements because of the liability it agrees to incur under the SVP Indemnity Agreement. In my opinion, banks should not sign up for the Signature Validation Program. Banks that have already signed up for this program should terminate their participation in the program. Banks should be very wary of allowing the Signature Validation Program to grow because it creates a substantial new risk to banks. If a bank does decide for whatever reason to participate in the Signature Validation Program, it should do so with extreme caution. The bank needs to evaluate each document on which the bank uses the Signature Validation Stamp to determine if the bank can document, and forever prove, that the person signing had actual authority to sign. The bank should also attempt to determine the amount of the bank’s potential risk with regard to that document in order to evaluate if the small fee, or other benefit, that the bank may receive in exchange is worth the potential liability the bank may incur. For more information, please give us a call at (785) 228-0000. continued from previous page