BUSINESS SERVICES DISHONESTY POLICY
Policy No.
Travelers Casualty and Surety Company
Hartford, Connecticut 06183
(A Stock Insurance Company, herein called the Company)
IN RETURN FOR THE PAYMENT OF PREMIUM, AND SUBJECT TO ALL THE TERMS OF THIS POLICY,
WE AGREE WITH YOU TO PROVIDE COVERAGE AS STATED IN THIS POLICY.
ITEM 1.
ITEM 2.
ITEM 3.
ITEM 4.
ITEM 5.
ITEM 6.
ITEM 7.
ITEM 8.
Name of Insured:
Address:
Policy Period: From
To 12:01 AM on
Retroactive Date:
Aggregate Limit of Liability:
$
.00
Single Loss Limit of Liability:
$
.00
Single Loss Deductible:
$
.00
Endorsements forming part of this Policy when issued:
Cancellation of prior insurance: By acceptance of this Policy, you give us notice canceling prior insurance or Bond numbers
The cancellation to be effective at the time this Policy becomes effective.
COUNTERSIGNED (if required):
Various provisions in this policy restrict coverage. Read the entire Policy carefully to determine rights, duties and what is or is not covered.
Throughout this Policy the words “you” and “your” refer to the Insured shown in Item 1. The words “we”, “us” and “our” refer to the Company providing
this Policy. Words and phrases in italicized print are defined in this Policy.
A. COVERAGE
We will indemnify you for loss of Covered Property from the premises of
any Subscriber to your services, which the Subscriber shall sustain as
the direct result of any Fraudulent or Dishonest Act committed by any
identified Employee or Employees of yours, acting alone or in collusion
with others.
B. LIMIT OF LIABILITY
1. The most we will indemnify for all Single Loss or losses during the
Policy Period is the Aggregate Limit of Liability shown in Item 4.
2. The most we will indemnify for any Single Loss is the Limit of Liability
shown in Item 5.
C. DEDUCTIBLE
1. We will not indemnify for any Single Loss unless the amount of loss
exceeds the Deductible Amount shown in Item 6. We will then
indemnify you for the amount of loss in excess of the Deductible
Amount, up to the Single Loss Limit of Liability shown in Item 5.
2. You must give us notice as soon as possible but not later than 30
days of any loss of the type insured under this Policy even though it
falls entirely within the Deductible Amount and, upon our request,
give us a written statement describing the loss.
D. RETROACTIVE DATE / DISCOVERY
This Policy applies only to a Single Loss which was sustained by a
Subscriber in its entirety after the Retroactive Date in Item 3. All
Fraudulent or Dishonest Acts causing or contributing to such Single
Loss must take place after the Retroactive Date for coverage to apply
under this Policy. Such Single Loss must be Discovered during the
Policy Period.
E. GENERAL DEFINITIONS
1. Covered Property means money or other tangible property which has
intrinsic value.
2. Discover, Discovered, Discovery means when you first become
aware of facts which would cause a reasonable person to assume
that a loss of the type covered by this Policy has been or will be
incurred, even though the exact amount or details of loss may not
then be known. The terms also mean when you receive notice of an
actual or potential claim in which it is alleged that you are liable to a
third party under circumstances which if true would constitute a loss
under this Policy.
3. Employee means any natural person (except your directors or
trustees, if a corporation, who are not also officers or Employees of
yours in some other capacity) while in your regular service in the
ordinary course of your business during the term of this Policy and
whom you compensate by salary or wages and have the right to
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4.
5.
6.
F.
1.
2.
3.
G.
1.
2.
govern and direct in the performance of such service, and who are
engaged in such service within any of the states of the United States
of America, the District of Columbia, Puerto Rico or the Virgin
Islands, but Employee does not mean brokers, factors, commission
merchants, consignees, contractors, or other agents or
representatives of the same general character.
Fraudulent or Dishonest Act of any Employee shall mean a
fraudulent or dishonest act causing loss to the Subscriber during the
time the Employee is engaged in services on the premises of a
Subscriber, and which is punishable under the Criminal code in the
jurisdiction within which the act occurred, and for which the Employee
is tried and convicted by a court of proper jurisdiction.
Single Loss means all loss caused by, or involving one Employee or
more than one Employee, whether the result of a single act or series
of related acts.
Subscriber means any third party client of yours which has
contracted for the services of your Employees on the premises of the
client.
POLICY EXCLUSIONS
We will not indemnify for loss as specified as follows:
Employee Canceled Under Prior Insurance: Loss caused by any
Employee of yours, or predecessor in interest of yours, for whom
similar prior coverage has been canceled and not reinstated since
the last such cancellation.
Indirect Loss: Loss that is an indirect result of any act or
occurrence including, but not limited to, loss resulting from:
a. Your inability to realize income that you would have realized had
there been no loss of or loss from damage to Covered Property.
b. Payment of costs, fees, or other expenses you incur in
establishing either the existence or the amount of loss under this
Policy.
Legal Expenses: Expenses related to any legal action.
GENERAL CONDITIONS
Your Duties in the Event of Loss: After you Discover a loss or a
situation that may result in loss of Covered Property you must:
a. Notify us as soon as possible but not later than 30 days
thereafter;
b. Give us a detailed, sworn proof of loss within 120 days;
c. Cooperate with us in the investigation and settlement of any
claim; and
d. Permit us access to your premises and your books and records.
Joint Insured
Page 1 of 2
3.
4.
5.
6.
7.
8.
9.
a. If more than one Insured is named in Item 1., the first named
Insured will act for itself and for every other Insured for all
purposes of this insurance. If the first named Insured ceases to
be covered, then the next named Insured will become the first
named Insured.
b. If any Insured or partner or officer of that Insured has knowledge
of any information relevant to this insurance, that knowledge is
considered knowledge of every Insured.
c. An Employee of any Insured is considered to be an Employee of
every Insured.
d. We will not pay more for loss sustained by more than one Insured
than the amount we would pay if all the loss had been sustained
by one Insured
Legal Action Against Us: You may not bring any legal action
against us involving loss:
a. Unless you have complied with all the terms of this Policy; and
b. Until 90 days after you have filed proof of loss with us; and
c. Unless brought within 2 years from the date you Discover the
loss.
Loss Covered Under this Policy and Prior Insurance Issued by
Us or Any Affiliate: If any loss is covered:
a. partly by this Policy ;and
b. partly by any prior canceled or terminated insurance that we or
any affiliate had issued to you or any predecessor in interest;
The most we will pay is the larger of the amount recoverable under
this Policy or the prior insurance.
Non-Cumulation of Limit of Insurance: Regardless of the number
of years this policy remains in force or the number of premiums paid,
no Limit of Liability cumulates from year to year or period to period
even if renewed or replaced in its present form by a new policy.
Other Insurance: This insurance does not apply to loss recoverable
or recovered under other insurance or indemnity. However, if the
limit of the other insurance or indemnity is insufficient to cover the
entire amount of the loss, this insurance will apply to that part of the
loss, other than that falling within any deductible, not recoverable or
recovered under the other insurance or indemnity, but not more than
the Single Loss Limit of Liability.
Ownership of Property - Interests Covered:
The Covered
Property under this Policy is limited to Covered Property that your
Subscriber owns or holds or for which your Subscriber is legally
liable. However, this Policy is for your benefit only. It provides no
rights or benefits to any other person or organization.
Records: You must obtain and keep records of all Covered Property
so we can verify the amount of any loss.
Recoveries:
a. Any recoveries, less the cost of obtaining them, made after
settlement of loss covered by this insurance will be distributed as
follows:
(1) To you, until you are reimbursed for any loss that you sustain
that exceeds the Limit of Insurance and the Deductible
Amount, if any;
(2) Then to us, until we are reimbursed for the settlement made;
(3) Then to you, until you are reimbursed for that part of the loss
equal to the Deductible Amount, if any.
b. Recoveries do not include any recovery:
(1) From insurance, suretyship, reinsurance, security or
indemnity taken for our benefit; or
(2)
10.
11.
12.
13.
14.
15.
Of original “securities” after duplicates of them have been
issued.
Transfer of Your Rights of Recovery Against Others to Us: You
must transfer to us all your rights of recovery against any person or
organization for any loss you sustained and for which we have
indemnified or settled. You must also do everything necessary to
secure those rights and do nothing after loss to impair them.
Valuation: We may, at our option, pay the market value of the
Covered Property, or repair or replace it with property of like kind or
quality. The value of any Covered Property shall be determined by
the value of such Covered Property on the date the loss was
Discovered. If no market price is quoted for such Covered Property,
the value shall be fixed by agreement between the parties or by
arbitration.
Cancellation of the Policy in its Entirety:
a. The first Named Insured shown in the Declarations may cancel
this Policy by mailing or delivering to us advance written notice of
cancellation.
b. We may cancel this Policy by mailing or delivering to the first
Named Insured written notice of cancellation at least:
(1) 10 days before the effective date of cancellation if we cancel
for nonpayment of premium; or
(2) 30 days before the effective date of cancellation if we cancel
for any other reason.
c. We will mail or deliver our notice to the first Named Insured’s last
mailing address known to us.
d. Notice of cancellation will state the effective date of cancellation.
The Policy Period will end on that date.
e. If this Policy is cancelled, we will send the first Named Insured
any premium refund due. If we cancel, the refund will be pro rata.
If the first Named Insured cancels, the refund may be less than
pro rata. The cancellation will be effective even if we have not
made or offered a refund.
f. If notice is mailed, proof of mailing will be sufficient proof of
notice.
Cancellation As to Any Employee: This Policy is canceled as to
any Employee:
a. Immediately upon Discovery by:
(1) You; or
(2) Any of your officers, trustees or directors not in collusion
with the Employee; of any dishonest act committed by that
Employee whether before or after becoming employed by
you; or
b. On the date specified in a notice mailed to you which will be at
least thirty days after the date of mailing. The mailing of notice to
you at the last known address will be sufficient proof of notice.
Delivery of notice is the same as mailing.
Bond Changes: The Insured identified in Item 1. is authorized to
make changes to this Policy with our consent. Such changes shall
only be effective if made in writing and signed by our authorized
representative.
Concealment, Misrepresentation, or Fraud: This insurance is void
in any cause of fraud by you as it relates to this insurance at any
time. It is also void if you or any other insured, at any time,
intentionally conceal or misrepresent a material fact concerning: (a)
this insurance; (b) the Covered Property; (c) your interest in the
Covered Property; or (d) a claim under this insurance.
IN WITNESS WHEREOF the Company, has caused this Policy to be signed by its authorized Company officers at Hartford, Connecticut, and
countersigned (if required) on the Declarations Page by its duly authorized agent.
BSD-1000 (08/01)
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The Travelers Advant
for Financial Institutio
Travelers Casualty and Surety Company of America
Hartford, Connecticut 06183-9062
(A Stock Insurance Company, herein called the Company)
Common Terms and Conditions
THE LIABILITY COVERAGE PARTS OF THIS POLICY ARE WRITTEN ON A CLAIMS-MADE BASIS, W
DEFENSE EXPENSES INCLUDED IN THE LIMIT OF LIABILITY. PLEASE READ THE POLICY CAREFU
IN CONSIDERATION of the payment of the premium stated in the Declarations, in reliance on the statements in
Applications, and subject to the Declarations for this Policy, the applicable Coverage Parts, the Common Term
Conditions, the Liability Coverage Terms and Conditions (if applicable), the Crime Coverage Terms and Conditio
applicable), and all endorsements, the Company and the Insureds agree as follows:
I. TERMS AND CONDITIONS.
The Common Terms and Conditions set forth herein
shall apply to all applicable Coverage Parts of this
Policy. The Liability Coverage Terms and Conditions
shall apply to all applicable Liability Coverage Parts.
The Crime Coverage Terms and Conditions shall apply
to all applicable Crime Coverage Parts. The terms and
conditions of each Coverage Part of this Policy shall
apply only to that Coverage Part and shall not apply to
any other Coverage Part of this Policy. If any
provision in the Common Terms and Conditions, the
Liability Coverage Terms and Conditions, or the Crime
Coverage Terms and Conditions is inconsistent or in
conflict with the terms and conditions of any Coverage
Part, the terms and conditions of such Coverage Part
shall control for purposes of that Coverage Part.
II. DEFINITIONS.
Whenever appearing in this Policy, words and phrases
appearing in bold type shall have the meanings set
forth in this provision:
A.
“Coverage Part(s)” individually or collectively
means the Directors And Officers Liability Including
Entity Securities Claims, Employment Practices
Liability, Fiduciary Liability, Bankers Professional
Liability, Financial Institution Bond, Computer Crime,
and Kidnap and Ransom/Extortion Coverage Parts, if
purchased.
B.
“Crime Coverage Part(s)” individually or
collectively means the Financial Institution Bond,
Computer Crime, and Kidnap and Ransom/Extortion
Coverage Parts, if purchased, as well as the Crime
Coverage Terms and Conditions.
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C.
“Employee” means an individual whos
or service is engaged by and directed by the Ins
Organization and who is paid through the payro
Insured Organization, including part-time, sea
and temporary workers, and guest students purs
studies or duties with the Insured Organization
Leased workers and independent contractors ar
Employees. The status of an individual as an
Employee shall be determined as of the date o
alleged Wrongful Act or loss.
With regard to the Financial Institution B
Coverage Part only, “Employee” also means:
1. an attorney retained by the Insured
employee of such attorney while either is perfor
legal services for the Insured;
2. each individual, partnership or corp
authorized by the Insured to perform services a
processor of checks or other accounting records
Insured (not including preparation or modificati
computer software or programs), herein called
Processor. (Each such Processor, and the part
officers and employees of such Processor shall
collectively, be deemed to be one Employee fo
purposes of the Financial Institution Bond Cove
Part, except the first paragraph of Section IV.B.
Coverage Part. A Federal Reserve Bank or cle
house shall not be construed to be a Processor.
With regard to the Computer Crime
Coverage Part only, “Employee” shall also mea
individual, partnership, or corporation authorize
under written contract to the Insured to perform
services involving the preparation or modificatio
Computer Programs which are part of the Insu
Computer System or the Insured’s Voice Com
System.
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Executive Vice President
Corporate Secretary
INCLUDES COPYRIGHTED MATERIAL OF INSURANCE SERVICES OFFICE AND
THE SURETY ASSOCIATION OF AMERICA
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