continuity of coverage clause

  • A clause contained in a new fidelity bond that takes the place of another bond and agrees to pay losses that would be recoverable under the first bond except that the discovery period has expired.

    Internal Revenue Service 1

1Internal Revenue Service, Internal Revenue Manual 4.42.6 Glossary, http://­www.irs.gov/­irm/­part4/­irm_04-042-006.html (last accessed Dec. 22, 2009).