Who may terminate a fidelity bond?

The correct answer indicates that both the employer and the surety have the authority to terminate a fidelity bond. A fidelity bond is designed to protect an employer from losses caused by fraudulent or dishonest acts of employees.

The employer has the ability to terminate the bond if they believe that the coverage is no longer necessary, for instance if they no longer employ the individual covered by the bond or if the bond's terms are no longer favorable.

On the other hand, the surety, which is the company that guarantees the bond, also has the right to terminate the bond under certain conditions, such as if there is a breach in the terms of the bond or if the risk associated with the bond has changed.

Therefore, the combination of both the employer and the surety being able to terminate the bond reflects the interests of both parties in maintaining risk management and financial protection.