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Identity Fraud Expense Reimbursement
IDENTITY FRAUD EXPENSE REIMBURSEMENT TERMS AND CONDITIONS
PLEASE READ ALL TERMS AND CONDITIONS CAREFULLY
CONSIDERATION CLAUSE
IN CONSIDERATION of the payment of the premium stated in the Declarations, in reliance on the statements in the Application,
subject to the Declarations, and pursuant to all the terms, exclusions, conditions and limitations of this Identity Fraud Expense
Reimbursement Policy, the Company and the Insurance Representative agree as follows:
I.
INSURING AGREEMENT
The Company shall reimburse any Insured Person for Expenses incurred by the Insured Person as a direct result of any Identity
Fraud Discovered during the Policy Period.
Only Insured Persons will be entitled to coverage under this Insuring Agreement.
II.
DEFINITIONS
Wherever appearing in this Identity Fraud Expense Reimbursement Policy, the following words and phrases appearing in bold
type shall have the meanings set forth in this Section II. DEFINITIONS:
A.
“Discovers,” Discovered,” or “Discovery” means the moment when the Insured Person first becomes aware of facts which
would cause a reasonable person to assume that a loss of a type covered by this Identity Fraud Expense Reimbursement Policy has
been or will be incurred, even though the exact details of loss may not then be known.
B.
“Expenses” means:
1.
costs for notarizing fraud affidavits or similar documents for credit agencies, financial institutions, merchants or
other credit grantors that have required that such affidavits be notarized;
2.
costs for certified mail to law enforcement agencies, credit agencies, financial institutions, merchants or other credit
grantors;
3.
costs for long distance telephone calls to law enforcement agencies, credit agencies, financial institutions, merchants
or other credit grantors to report or discuss any actual Identity Fraud;
4.
lost wages, up to a maximum payment of one thousand dollars ($1,000) per week for a maximum period of five (5)
weeks, as a result of absence from employment:
a.
to communicate with law enforcement agencies, legal counsel, credit agencies, financial institutions,
merchants or other credit grantors;
b.
to complete fraud affidavits or similar documents; or
c.
due to wrongful incarceration arising solely from someone having committed a crime in the Insured
Person’s name; provided, that lost wages shall not apply in the case of wrongful incarceration absent all charges being dismissed or an
acquittal;
5.
loan application fees for re-applying for a loan or loans when the original application is rejected solely because the
lender received incorrect credit information;
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6.
reasonable attorney fees incurred, with the Company’s prior written consent, for:
a.
defense of lawsuits brought against the Insured Person by financial institutions, merchants, other credit
grantors or their collection agencies;
7.
Policy Period.
b.
the removal of any criminal or civil judgments wrongly entered against the Insured Person; or
c.
challenging the accuracy or completeness of any information in a consumer credit report; and
costs for daycare and eldercare incurred solely as a direct result of any Identity Fraud Discovered during the
Expenses does not include any expense or loss not listed in paragraphs 1. through 7. of this Definition B.
C.
“Identity Fraud” means the act of knowingly transferring or using, without lawful authority, a means of identification of any
Insured Person with the intent to commit, aid, or abet any unlawful activity that constitutes a violation of federal law or a felony
under any applicable state or local law.
D.
“Identity Fraud Expense Reimbursement Policy” means, collectively, the Declarations, the Application, the Identity Fraud
Expense Reimbursement Terms and Conditions, and any endorsements attached thereto.
E.
“Insurance Representative” means the entity named in ITEM 1 of the Declarations.
F.
“Insured Person” means any natural person:
1.
whose labor and service is engaged by and directed by the Insurance Representative or any Subsidiary and who
is on the payroll of the Insurance Representative or any Subsidiary;
2.
who is a duly elected or appointed member of the board of directors, officer, member of the board of trustees, or
member of the board of managers, or a functional equivalent thereof, of the Insurance Representative or any Subsidiary;
3.
who is specifically scheduled as an Insured Person by endorsement to this Identity Fraud Expense
Reimbursement Policy;
4.
who is the lawful spouse, or person qualifying as a domestic partner under the provisions of any applicable federal,
state or local law, of any person that meets the criteria set forth in paragraphs 1., 2., or 3. of this Definition F;
5.
who is a child of any person that meets the criteria set forth in paragraphs 1., 2., 3., or 4. of this Definition F. and is:
a.
under the age of eighteen (18) years of age; and
b.
a resident of the same household of such Insured Person; or
6.
who is a parent of any person that meets the criteria set forth in paragraphs 1., 2., 3., or 4. of this Definition F. and is
a resident of the same household of such Insured Person.
G.
“Policy Period” means the period from the Inception Date to the Expiration Date set forth in ITEM 2 of the Declarations. In
no event shall the Policy Period continue past the effective date of cancellation or termination of this Identity Fraud Expense
Reimbursement Policy.
H.
“Subsidiary” means:
1.
any corporation, partnership or limited liability company organized under the laws of any state in which, on or prior
to the Inception Date set forth in ITEM 2 of the Declarations, the Insurance Representative owns, directly or through one or more
Subsidiaries, more than fifty percent (50%) of the outstanding securities or voting rights representing the right to vote for the election
of, or to appoint such organization’s board of directors, board of trustees, board of managers, or a functional equivalent thereof, or to
exercise a majority control of the board of directors, board of trustees, board of managers or a functional equivalent thereof;
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2.
subject to the provisions set forth in Section IV. CONDITIONS H. ACQUISITIONS, any organization that the
Insurance Representative acquires or forms during the Policy Period in which the Insurance Representative owns, directly or
through one or more Subsidiaries, more than fifty percent (50%) of the outstanding securities or voting rights representing the right
to vote for the election of, or to appoint such organization’s board of directors, board of trustees, board of managers or a functional
equivalent thereof, or to exercise a majority control of the board of directors, board of trustees, board of managers or a functional
equivalent thereof.
III.
EXCLUSIONS
A.
This Identity Fraud Expense Reimbursement Policy shall not apply to loss other than Expenses.
B.
This Identity Fraud Expense Reimbursement Policy shall not apply to, and the Company shall have no obligation to
reimburse Expenses for:
1.
loss due to any fraudulent, dishonest or criminal act by the Insured Person who is seeking reimbursement of
Expenses under this Identity Fraud Expense Reimbursement Policy or any person acting in collusion with such Insured Person;
2.
an Identity Fraud Discovered during such time that an individual was not an Insured Person;
3.
loss resulting directly or indirectly from war, whether or not declared; civil war; insurrection; rebellion or
revolution; military, naval or usurped power; governmental intervention, expropriation or nationalization; or any act or condition
related to any of the foregoing; or
4.
loss resulting directly or indirectly from nuclear reaction, nuclear radiation, radioactive contamination, biological or
chemical contamination or to any related act or incident.
IV.
CONDITIONS
A.
TERRITORY
This Identity Fraud Expense Reimbursement Policy applies to Identity Fraud occurring anywhere in the world.
B.
PERIOD TO REPORT DISCOVERED LOSS
This Identity Fraud Expense Reimbursement Policy applies only to Identity Fraud that is Discovered during the Policy Period
and reported to the Company during the Policy Period or within thirty (30) days thereafter.
C.
INSURED PERSON’S DUTIES IN THE EVENT OF LOSS
Upon knowledge or Discovery of a loss or an occurrence that may give rise to a claim under the terms of this Identity Fraud
Expense Reimbursement Policy the Insured Person shall:
1.
Policy Period;
give the Company notice thereof as soon as practicable, but in no event later than thirty (30) days after the end of the
2.
of any loss;
keep books, receipts, bills and other records in such manner that the Company can accurately determine the amount
3.
file a detailed proof of loss, duly sworn to, with the Company within four (4) months after the Discovery of such
loss;
notify law enforcement authorities;
at the request of the Company, submit to examination under oath and give the Company a signed statement of the answers;
at the request of the Company, produce for the Company’s examination all pertinent books, receipts, bills, and other records,
at such reasonable times and places as the Company shall designate; and
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cooperate with the Company in all matters pertaining to loss or claims with respect thereto.
Compliance with all terms and conditions of this Identity Fraud Expense Reimbursement Policy is a condition precedent to
recovery under this Identity Fraud Expense Reimbursement Policy.
D.
RETENTION
The Company shall be liable only for the amount by which any loss exceeds the applicable Retention amount set forth in ITEM 5 of
the Declarations. This Retention amount applies to each and every loss and shall have no aggregate limitation.
E.
LIMIT OF INSURANCE
The maximum limit of insurance per Insured Person for each Identity Fraud covered under this Identity Fraud Expense
Reimbursement Policy shall not exceed the applicable Limit of Insurance stated in ITEM 5 of the Declarations. All acts incidental to
an Identity Fraud, any series of related Identity Frauds, and all Identity Frauds arising from the same method of operation or a
common scheme or plan, whether committed by one or more persons, shall be deemed to arise out of one act and shall be treated as
one Identity Fraud. If an act causes a covered loss to more than one Insured Person, the applicable Limit of Insurance under this
Identity Fraud Expense Reimbursement Policy and the applicable Retention amount shall apply to each Insured Person separately.
F.
ACTION AGAINST THE COMPANY
No action shall lie against the Company, unless:
a.
there shall have been full compliance with all the terms of this Identity Fraud Expense Reimbursement
b.
it is brought ninety (90) days after the Insured Person has filed proof of loss with us; and
Policy;
it is brought within two (2) years from the date when the Insured Person first Discovers the loss.
If any limitation in this Condition F. is deemed to be inconsistent with applicable state law, such limitation is amended so as to equal
the minimum period of limitation provided by such law.
G.
RECOVERIES
All recoveries for payments made under this Identity Fraud Expense Reimbursement Policy shall be applied, after first deducting
the costs and expenses incurred in obtaining such recovery, in the following order of priority:
1.
first, to the Insured Person to reimburse such Insured Person for Expenses he or she has paid which
would have been paid under this Identity Fraud Expense Reimbursement Policy but for the fact that it is in excess of the applicable
Limit of Insurance;
2.
any covered claim; and
3.
second, to the Company in satisfaction of amounts paid or to be paid to the Insured Person in settlement of
third, to the Insured Person in satisfaction of any applicable Retention;
provided, recoveries do not include any recovery from insurance, suretyship, reinsurance, security or indemnity taken for the
Company’s benefit.
H.
ACQUISITIONS
If, during the Policy Period, the Insurance Representative acquires or forms a Subsidiary, this Identity Fraud Expense
Reimbursement Policy will provide coverage for the Insured Persons of such Subsidiary, subject to all other terms and conditions
of this Identity Fraud Expense Reimbursement Policy, provided written notice of such acquisition or formation has been given to
the Company, and specific application has been submitted on the Company’s form in use at the time, together with such
documentation and information as the Company may require, all within ninety (90) days after the effective date of such acquisition or
formation. Coverage for the Insured Persons of such acquired or formed Subsidiary shall not be afforded following such 90-day
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period unless the Company has agreed to provide such coverage, subject to any additional terms and conditions as the Company may
require, and the Insurance Representative has paid the Company any additional premium as may be required by the Company.
The 90-day notice requirement shall not apply provided that: (1) the assets of the acquired or formed Subsidiary do not exceed
twenty-five percent (25%) of the total assets of the Insurance Representative as reflected in the Insurance Representative’s most
recent fiscal year-end financial statement; or (2) the acquisition or formation occurs less than ninety (90) days prior to the end of the
Policy Period.
I.
SUBROGATION
In the event of payment under this Identity Fraud Expense Reimbursement Policy, the Company shall be subrogated to all of the
Insured Person's rights of recovery against any person or organization to the extent of such payment and the Insured Person shall
execute and deliver instruments and papers and do whatever else is necessary to secure such rights. The Insured Person shall do
nothing to prejudice such rights.
J.
CANCELLATION
The Company may cancel this Identity Fraud Expense Reimbursement Policy for failure to pay a premium when due, in which
case twenty (20) days written notice shall be given to the Insurance Representative, unless, payment in full is received within
twenty (20) days of the Insurance Representative’s receipt of such notice of cancellation. The Company shall have the right to the
premium amount for the portion of the Policy Period during which this Identity Fraud Expense Reimbursement Policy was in
effect.
The Insurance Representative may cancel this Identity Fraud Expense Reimbursement Policy by mailing the Company written
notice stating when, thereafter, not later than the Expiration Date set forth in ITEM 2 of the Declarations, such cancellation will be
effective. In the event the Insurance Representative cancels, the earned premium will be computed in accordance with the
customary short rate table and procedure. Premium adjustment may be made either at the time cancellation is effective or as soon as
practicable after cancellation becomes effective, but payment or tender of unearned premium is not a condition of cancellation.
The Company will not be required to renew this Identity Fraud Expense Reimbursement Policy upon its expiration. If the
Company elects not to renew, it will provide to the Insurance Representative written notice to that effect at least thirty (30) days
before the Expiration Date set forth in ITEM 2 of the Declarations.
K.
OTHER INSURANCE
This Identity Fraud Expense Reimbursement Policy shall apply only as excess insurance over, and shall not contribute with any
other valid and collectible insurance available to the Insured Person. As excess insurance, this Identity Fraud Expense
Reimbursement Policy will not apply or contribute to the payment of any loss or Expenses until the amount of such other insurance
or indemnity has been exhausted by payment of loss or Expenses covered thereunder. If the limit of the other insurance or indemnity
is insufficient to cover the entire amount of loss or Expenses, this Identity Fraud Expense Reimbursement Policy will apply to that
part of Expenses not recoverable or recovered under the other insurance or indemnity. This Identity Fraud Expense
Reimbursement Policy will not be subject to the terms of any other insurance.
L.
ASSIGNMENT
This Identity Fraud Expense Reimbursement Policy shall not be assigned or transferred, and any such attempted assignment or
transfer shall be void and without effect unless the Company has provided its prior written consent to such assignment or transfer.
M.
INTERESTS COVERED
This Identity Fraud Expense Reimbursement Policy shall be for the sole use and benefit of the Insured Persons and the Insurance
Representative. It provides no rights or benefits to any other person, entity, or organization.
N.
CONCEALMENT OR MISREPRESENTATION
This Identity Fraud Expense Reimbursement Policy is void as to any Insured Person if, at any time, such Insured Person
intentionally conceals or misrepresents a material fact concerning either this insurance or a claim under this Identity Fraud Expense
Reimbursement Policy.
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O.
CHANGES
Only the Insurance Representative is authorized to make changes in the terms of this Identity Fraud Expense Reimbursement
Policy and solely with the Company’s prior written consent. This Identity Fraud Expense Reimbursement Policy’s terms can be
changed, amended or waived only by endorsement issued by the Company and made a part of this Identity Fraud Expense
Reimbursement Policy. Notice to any representative of the Insurance Representative or Insured Person or knowledge possessed
by any agent or by any other person shall not effect a waiver or change to any part of this Identity Fraud Expense Reimbursement
Policy, or estop the Company from asserting any right under the terms, conditions and limitations of this Identity Fraud Expense
Reimbursement Policy, nor may the terms, conditions and limitations hereunder be waived or changed, except by a written
endorsement to this Identity Fraud Expense Reimbursement Policy issued by the Company.
P.
LIBERALIZATION
If, during the Policy Period, the Company is required, by law or by insurance supervisory authorities of the state in which this
Identity Fraud Expense Reimbursement Policy was issued, to make any changes in the form of this Identity Fraud Expense
Reimbursement Policy, by which the insurance afforded by this Identity Fraud Expense Reimbursement Policy could be
extended or broadened without increased premium charge by endorsement or substitution of form, then such extended or broadened
insurance shall inure to the benefit of the Insured Person as of the date the revision or change is approved for general use by the
applicable department of insurance.
Q.
ENTIRE AGREEMENT
The Declarations, the Application, the Identity Fraud Expense Reimbursement Terms and Conditions, and any endorsements attached
thereto, constitute the entire agreement between the Company, the Insurance Representative, and the Insured Person.
R.
HEADINGS
The titles of the various paragraphs of this Identity Fraud Expense Reimbursement Policy and its endorsements are inserted solely
for convenience or reference and are not to be deemed in any way to limit or affect the provision to which they relate.
IN WITNESS WHEREOF, the Company has caused this Identity Fraud Expense Reimbursement Policy to be signed by its
authorized officers at Hartford, CT.
Executive Vice President
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Corporate Secretary
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