Chubb Group of Insurance Companies | DECLARATIONS | |||||
FINANCIAL INSTITUTION INVESTMENT | ||||||
15 Mountain View Road, Warren, New Jersey 07059 | COMPANY ASSET PROTECTION BOND | |||||
NAME OF ASSURED (including its Subsidiaries): | Bond Number: 81392053 | Dfi | ||||
CENTRAL SECURITIES CORPORATION | ||||||
VIGILANT INSURANCE COMPANY | ||||||
630 FIFTH AVENUE | Incorporated under the laws of New York | |||||
a stock insurance company herein called the COMPANY | ||||||
NEW YORK, NY 10111 | ||||||
55 Water Street, New York NY 10041-2899 | ||||||
ITEM 1. | BOND PERIOD: | from | 12:01 a.m. on | April 1, 2010 | ||
to | 12:01 a.m. on | April 1, 2011 | ||||
ITEM 2. | LIMITS OF LIABILITY--DEDUCTIBLE AMOUNTS: | |||||
If Not Covered is inserted below opposite any specified INSURING CLAUSE, such INSURING CLAUSE | ||||||
and any other reference shall be deemed to be deleted. There shall be no deductible applicable to any | ||||||
loss under INSURING CLAUSE 1. sustained by any Investment Company. | ||||||
INSURING CLAUSE | LIMIT OF LIABILITY | DEDUCTIBLE AMOUNT | |||||||
1 | . | Employee | $ | 900,000 | $ | 10,000 | |||
2 | . | On Premises | $ | 900,000 | $ | 10,000 | |||
3 | . | In Transit | $ | 900,000 | $ | 10,000 | |||
4 | . | Forgery or Alteration | $ | 900,000 | $ | 10,000 | |||
5 | . | Extended Forgery | $ | Not Covered | $ | N/A | |||
6 | . | Counterfeit Money | $ | 900,000 | $ | 10,000 | |||
7 | . | Threats to Person | $ | Not Covered | $ | N/A | |||
8 | . | Computer System | $ | 900,000 | $ | 10,000 | |||
9 | . | Voice Initiated Funds Transfer Instruction | $ | Not Covered | $ | N/A | |||
10 | . | Uncollectible Items of Deposit | $ | Not Covered | $ | N/A | |||
11 | . | Audit Expense | $ | Not Covered | $ | N/A |
ITEM 3. | THE LIABILITY OF THE COMPANY IS ALSO SUBJECT TO THE TERMS OF THE FOLLOWING | |||
ENDORSEMENTS EXECUTED SIMULTANEOUSLY HEREWITH: | ||||
Endorsement Nos. 1 3 | ||||
IN WITNESS WHEREOF, THE COMPANY has caused this Bond to be signed by its authorized officers, but it shall not | ||||
be valid unless also signed by an authorized representative of the Company. |
ICAP Bond (5-98) - Vigilant | |
Form 17-02-1422 (Ed. 5-98) | Page 1 of 1 |
The COMPANY, in consideration of payment of the required premium, and in reliance | ||||
on the APPLICATION and all other statements made and information furnished to the | ||||
COMPANY by the ASSURED, and subject to the DECLARATIONS made a part of this | ||||
Bond and to all other terms and conditions of this Bond, agrees to pay the ASSURED | ||||
for: | ||||
Insuring Clauses | ||||
Employee | 1. | Loss resulting directly from Larceny or Embezzlement committed by any | ||
Employee, alone or in collusion with others. | ||||
On Premises | 2. | Loss of Property resulting directly from robbery, burglary, false pretenses, | ||
common law or statutory larceny, misplacement, mysterious unexplainable | ||||
disappearance, damage, destruction or removal, from the possession, custody or | ||||
control of the ASSURED, while such Property is lodged or deposited at premises | ||||
located anywhere. | ||||
In Transit | 3. | Loss of Property resulting directly from common law or statutory larceny, | ||
misplacement, mysterious unexplainable disappearance, damage or destruction, | ||||
while the Property is in transit anywhere: | ||||
a. | in an armored motor vehicle, including loading and unloading thereof, | |||
b. | in the custody of a natural person acting as a messenger of the ASSURED, | |||
or | ||||
c. | in the custody of a Transportation Company and being transported in a | |||
conveyance other than an armored motor vehicle provided, however, that | ||||
covered Property transported in such manner is limited to the following: | ||||
(1) | written records, | |||
(2) | securities issued in registered form, which are not endorsed or are | |||
restrictively endorsed, or | ||||
(3) | negotiable instruments not payable to bearer, which are not endorsed | |||
or are restrictively endorsed. | ||||
Coverage under this INSURING CLAUSE begins immediately on the receipt of | ||||
such Property by the natural person or Transportation Company and ends | ||||
immediately on delivery to the premises of the addressee or to any representative | ||||
of the addressee located anywhere. |
ICAP Bond (5-98) | |
Form 17-02-1421 (Ed. 5-98) | Page 1 of 19 |
Insuring Clauses | ||||
(continued) | ||||
Forgery Or Alteration | 4. | Loss resulting directly from: | ||
a. | Forgery on, or fraudulent material alteration of, any bills of exchange, | |||
checks, drafts, acceptances, certificates of deposits, promissory notes, due | ||||
bills, money orders, orders upon public treasuries, letters of credit, other | ||||
written promises, orders or directions to pay sums certain in money, or | ||||
receipts for the withdrawal of Property, or | ||||
b. | transferring, paying or delivering any funds or other Property, or establishing | |||
any credit or giving any value in reliance on any written instructions, advices | ||||
or applications directed to the ASSURED authorizing or acknowledging the | ||||
transfer, payment, delivery or receipt of funds or other Property, which | ||||
instructions, advices or applications fraudulently purport to bear the | ||||
handwritten signature of any customer of the ASSURED, or shareholder or | ||||
subscriber to shares of an Investment Company, or of any financial | ||||
institution or Employee but which instructions, advices or applications either | ||||
bear a Forgery or have been fraudulently materially altered without the | ||||
knowledge and consent of such customer, shareholder, subscriber, financial | ||||
institution or Employee; | ||||
excluding, however, under this INSURING CLAUSE any loss covered under | ||||
INSURING CLAUSE 5. of this Bond, whether or not coverage for INSURING | ||||
CLAUSE 5. is provided for in the DECLARATIONS of this Bond. | ||||
For the purpose of this INSURING CLAUSE, a mechanically reproduced facsimile | ||||
signature is treated the same as a handwritten signature. | ||||
Extended Forgery | 5. | Loss resulting directly from the ASSURED having, in good faith, and in the | ||
ordinary course of business, for its own account or the account of others in any | ||||
capacity: | ||||
a. | acquired, accepted or received, accepted or received, sold or delivered, or | |||
given value, extended credit or assumed liability, in reliance on any original | ||||
Securities, documents or other written instruments which prove to: | ||||
(1) | bear a Forgery or a fraudulently material alteration, | |||
(2) | have been lost or stolen, or | |||
(3) | be Counterfeit, or | |||
b. | guaranteed in writing or witnessed any signatures on any transfer, | |||
assignment, bill of sale, power of attorney, guarantee, endorsement or other | ||||
obligation upon or in connection with any Securities, documents or other | ||||
written instruments. | ||||
Actual physical possession, and continued actual physical possession if taken as | ||||
collateral, of such Securities, documents or other written instruments by an | ||||
Employee, Custodian, or a Federal or State chartered deposit institution of the | ||||
ASSURED is a condition precedent to the ASSURED having relied on such items. | ||||
Release or return of such collateral is an acknowledgment by the ASSURED that it | ||||
no longer relies on such collateral. |
ICAP Bond (5-98) | |
Form 17-02-1421 (Ed. 5-98) | Page 2 of 19 |
Insuring Clauses | ||||
Extended Forgery | For the purpose of this INSURING CLAUSE, a mechanically reproduced facsimile | |||
(continued) | signature is treated the same as a handwritten signature. | |||
Counterfeit Money | 6. | Loss resulting directly from the receipt by the ASSURED in good faith of any | ||
Counterfeit money. | ||||
Threats To Person | 7. | Loss resulting directly from surrender of Property away from an office of the | ||
ASSURED as a result of a threat communicated to the ASSURED to do bodily | ||||
harm to an Employee as defined in Section 1.e. (1), (2) and (5), a Relative or | ||||
invitee of such Employee, or a resident of the household of such Employee, who | ||||
is, or allegedly is, being held captive provided, however, that prior to the surrender | ||||
of such Property: | ||||
a. | the Employee who receives the threat has made a reasonable effort to | |||
notify an officer of the ASSURED who is not involved in such threat, and | ||||
b. | the ASSURED has made a reasonable effort to notify the Federal Bureau of | |||
Investigation and local law enforcement authorities concerning such threat. | ||||
It is agreed that for purposes of this INSURING CLAUSE, any Employee of the | ||||
ASSURED, as set forth in the preceding paragraph, shall be deemed to be an | ||||
ASSURED hereunder, but only with respect to the surrender of money, securities | ||||
and other tangible personal property in which such Employee has a legal or | ||||
equitable interest. | ||||
Computer System | 8. | Loss resulting directly from fraudulent: | ||
a. | entries of data into, or | |||
b. | changes of data elements or programs within, | |||
a Computer System, provided the fraudulent entry or change causes: | ||||
(1) | funds or other property to be transferred, paid or delivered, | |||
(2) | an account of the ASSURED or of its customer to be added, deleted, | |||
debited or credited, or | ||||
(3) | an unauthorized account or a fictitious account to be debited or | |||
credited. |
ICAP Bond (5-98) | |
Form 17-02-1421 (Ed. 5-98) | Page 3 of 19 |
Insuring Clauses | |||
(continued) | |||
Voice Initiated Funds | 9. | Loss resulting directly from Voice Initiated Funds Transfer Instruction directed | |
Transfer Instruction | to the ASSURED authorizing the transfer of dividends or redemption proceeds of | ||
Investment Company shares from a Customers account, provided such Voice | |||
Initiated Funds Transfer Instruction was: | |||
a. | received at the ASSUREDS offices by those Employees of the ASSURED | ||
specifically authorized to receive the Voice Initiated Funds Transfer | |||
Instruction, | |||
b. | made by a person purporting to be a Customer, and | ||
c. | made by said person for the purpose of causing the ASSURED or Customer | ||
to sustain a loss or making an improper personal financial gain for such | |||
person or any other person. | |||
In order for coverage to apply under this INSURING CLAUSE, all Voice Initiated | |||
Funds Transfer Instructions must be received and processed in accordance with | |||
the Designated Procedures outlined in the APPLICATION furnished to the | |||
COMPANY. | |||
Uncollectible Items | 10. | Loss resulting directly from the ASSURED having credited an account of a | |
of Deposit | customer, shareholder or subscriber on the faith of any Items of Deposit which | ||
prove to be uncollectible, provided that the crediting of such account causes: | |||
a. | redemptions or withdrawals to be permitted, | ||
b. | shares to be issued, or | ||
c. | dividends to be paid, | ||
from an account of an Investment Company. | |||
In order for coverage to apply under this INSURING CLAUSE, the ASSURED | |||
must hold Items of Deposit for the minimum number of days stated in the | |||
APPLICATION before permitting any redemptions or withdrawals, issuing any | |||
shares or paying any dividends with respect to such Items of Deposit. | |||
Items of Deposit shall not be deemed uncollectible until the ASSUREDS | |||
standard collection procedures have failed. | |||
Audit Expense | 11. | Expense incurred by the ASSURED for that part of the cost of audits or | |
examinations required by any governmental regulatory authority or self-regulatory | |||
organization to be conducted by such authority, organization or their appointee by | |||
reason of the discovery of loss sustained by the ASSURED and covered by this | |||
Bond. |
ICAP Bond (5-98) | |
Form 17-02-1421 (Ed. 5-98) | Page 4 of 19 |
General Agreements | |||
Additional Companies | A. | If more than one corporation, or Investment Company, or any combination of | |
Included As Assured | them is included as the ASSURED herein: | ||
(1) | The total liability of the COMPANY under this Bond for loss or losses | ||
sustained by any one or more or all of them shall not exceed the limit for | |||
which the COMPANY would be liable under this Bond if all such loss were | |||
sustained by any one of them. | |||
(2) | Only the first named ASSURED shall be deemed to be the sole agent of the | ||
others for all purposes under this Bond, including but not limited to the giving | |||
or receiving of any notice or proof required to be given and for the purpose of | |||
effecting or accepting any amendments to or termination of this Bond. The | |||
COMPANY shall furnish each Investment Company with a copy of the | |||
Bond and with any amendment thereto, together with a copy of each formal | |||
filing of claim by any other named ASSURED and notification of the terms of | |||
the settlement of each such claim prior to the execution of such settlement. | |||
(3) | The COMPANY shall not be responsible for the proper application of any | ||
payment made hereunder to the first named ASSURED. | |||
(4) | Knowledge possessed or discovery made by any partner, director, trustee, | ||
officer or supervisory employee of any ASSURED shall constitute knowledge | |||
or discovery by all the ASSUREDS for the purposes of this Bond. | |||
(5) | If the first named ASSURED ceases for any reason to be covered under this | ||
Bond, then the ASSURED next named on the APPLICATION shall thereafter | |||
be considered as the first named ASSURED for the purposes of this Bond. | |||
Representation Made | B. | The ASSURED represents that all information it has furnished in the | |
By Assured | APPLICATION for this Bond or otherwise is complete, true and correct. Such | ||
APPLICATION and other information constitute part of this Bond. | |||
The ASSURED must promptly notify the COMPANY of any change in any fact or | |||
circumstance which materially affects the risk assumed by the COMPANY under | |||
this Bond. | |||
Any intentional misrepresentation, omission, concealment or incorrect statement of | |||
a material fact, in the APPLICATION or otherwise, shall be grounds for recision of | |||
this Bond. |
ICAP Bond (5-98) | |
Form 17-02-1421 (Ed. 5-98) | Page 5 of 19 |
General Agreements | ||||
(continued) | ||||
Additional Offices Or | C. | If the ASSURED, other than an Investment Company, while this Bond is in force, | ||
Employees - Consolidation, | merges or consolidates with, or purchases or acquires assets or liabilities of | |||
Merger Or Purchase Or | another institution, the ASSURED shall not have the coverage afforded under this | |||
Acquisition Of Assets Or | Bond for loss which has: | |||
Liabilities - Notice To | (1) | occurred or will occur on premises, or | ||
Company | (2) | been caused or will be caused by an employee, or | ||
(3) | arisen or will arise out of the assets or liabilities, | |||
of such institution, unless the ASSURED: | ||||
a. | gives the COMPANY written notice of the proposed consolidation, merger or | |||
purchase or acquisition of assets or liabilities prior to the proposed effective | ||||
date of such action, and | ||||
b. | obtains the written consent of the COMPANY to extend some or all of the | |||
coverage provided by this Bond to such additional exposure, and | ||||
c. | on obtaining such consent, pays to the COMPANY an additional premium. | |||
Change Of Control - | D. | When the ASSURED learns of a change in control (other than in an Investment | ||
Notice To Company | Company), as set forth in Section 2(a) (9) of the Investment Company Act of | |||
1940, the ASSURED shall within sixty (60) days give written notice to the | ||||
COMPANY setting forth: | ||||
(1) | the names of the transferors and transferees (or the names of the beneficial | |||
owners if the voting securities are registered in another name), | ||||
(2) | the total number of voting securities owned by the transferors and the | |||
transferees (or the beneficial owners), both immediately before and after the | ||||
transfer, and | ||||
(3) | the total number of outstanding voting securities. | |||
Failure to give the required notice shall result in termination of coverage for any | ||||
loss involving a transferee, to be effective on the date of such change in control. | ||||
Court Costs And | E. | The COMPANY will indemnify the ASSURED for court costs and reasonable | ||
Attorneys Fees | attorneys fees incurred and paid by the ASSURED in defense, whether or not | |||
successful, whether or not fully litigated on the merits and whether or not settled, | ||||
of any claim, suit or legal proceeding with respect to which the ASSURED would | ||||
be entitled to recovery under this Bond. However, with respect to INSURING | ||||
CLAUSE 1., this Section shall only apply in the event that: | ||||
(1) | an Employee admits to being guilty of Larceny or Embezzlement, | |||
(2) | an Employee is adjudicated to be guilty of Larceny or Embezzlement, or |
ICAP Bond (5-98) | |
Form 17-02-1421 (Ed. 5-98) | Page 6 of 19 |
General Agreements | |||
Court Costs And | (3) | in the absence of 1 or 2 above, an arbitration panel agrees, after a review of | |
Attorneys Fees | an agreed statement of facts between the COMPANY and the ASSURED, | ||
(continued) | that an Employee would be found guilty of Larceny or Embezzlement if | ||
such Employee were prosecuted. | |||
The ASSURED shall promptly give notice to the COMPANY of any such suit or | |||
legal proceeding and at the request of the COMPANY shall furnish copies of all | |||
pleadings and pertinent papers to the COMPANY. The COMPANY may, at its | |||
sole option, elect to conduct the defense of all or part of such legal proceeding. | |||
The defense by the COMPANY shall be in the name of the ASSURED through | |||
attorneys selected by the COMPANY. The ASSURED shall provide all reasonable | |||
information and assistance as required by the COMPANY for such defense. | |||
If the COMPANY declines to defend the ASSURED, no settlement without the | |||
prior written consent of the COMPANY nor judgment against the ASSURED shall | |||
determine the existence, extent or amount of coverage under this Bond. | |||
If the amount demanded in any such suit or legal proceeding is within the | |||
DEDUCTIBLE AMOUNT, if any, the COMPANY shall have no liability for court | |||
costs and attorneys fees incurred in defending all or part of such suit or legal | |||
proceeding. | |||
If the amount demanded in any such suit or legal proceeding is in excess of the | |||
LIMIT OF LIABILITY stated in ITEM 2. of the DECLARATIONS for the applicable | |||
INSURING CLAUSE, the COMPANYS liability for court costs and attorneys fees | |||
incurred in defending all or part of such suit or legal proceedings is limited to the | |||
proportion of such court costs and attorneys fees incurred that the LIMIT OF | |||
LIABILITY stated in ITEM 2. of the DECLARATIONS for the applicable INSURING | |||
CLAUSE bears to the total of the amount demanded in such suit or legal | |||
proceeding. | |||
If the amount demanded is any such suit or legal proceeding is in excess of the | |||
DEDUCTIBLE AMOUNT, if any, but within the LIMIT OF LIABILITY stated in ITEM | |||
2. of the DECLARATIONS for the applicable INSURING CLAUSE, the | |||
COMPANYS liability for court costs and attorneys fees incurred in defending all or | |||
part of such suit or legal proceedings shall be limited to the proportion of such | |||
court costs or attorneys fees that the amount demanded that would be payable | |||
under this Bond after application of the DEDUCTIBLE AMOUNT, bears to the total | |||
amount demanded. | |||
Amounts paid by the COMPANY for court costs and attorneys fees shall be in | |||
addition to the LIMIT OF LIABILITY stated in ITEM 2. of the DECLARATIONS. |
ICAP Bond (5-98) | |
Form 17-02-1421 (Ed. 5-98) | Page 7 of 19 |
Conditions And | ||||
Limitations | ||||
Definitions | 1. | As used in this Bond: | ||
a. | Computer System means a computer and all input, output, processing, | |||
storage, off-line media libraries, and communication facilities which are | ||||
connected to the computer and which are under the control and supervision | ||||
of the operating system(s) or application(s) software used by the ASSURED. | ||||
b. | Counterfeit means an imitation of an actual valid original which is intended | |||
to deceive and be taken as the original. | ||||
c. | Custodian means the institution designated by an Investment Company to | |||
maintain possession and control of its assets. | ||||
d. | Customer means an individual, corporate, partnership, trust customer, | |||
shareholder or subscriber of an Investment Company which has a written | ||||
agreement with the ASSURED for Voice Initiated Funds Transfer | ||||
Instruction. | ||||
e. | Employee means: | |||
(1) | an officer of the ASSURED, | |||
(2) | a natural person while in the regular service of the ASSURED at any of | |||
the ASSUREDS premises and compensated directly by the ASSURED | ||||
through its payroll system and subject to the United States Internal | ||||
Revenue Service Form W-2 or equivalent income reporting plans of | ||||
other countries, and whom the ASSURED has the right to control and | ||||
direct both as to the result to be accomplished and details and means | ||||
by which such result is accomplished in the performance of such | ||||
service, | ||||
(3) | a guest student pursuing studies or performing duties in any of the | |||
ASSUREDS premises, | ||||
(4) | an attorney retained by the ASSURED and an employee of such | |||
attorney while either is performing legal services for the ASSURED, | ||||
(5) | a natural person provided by an employment contractor to perform | |||
employee duties for the ASSURED under the ASSUREDS supervision | ||||
at any of the ASSUREDS premises, | ||||
(6) | an employee of an institution merged or consolidated with the | |||
ASSURED prior to the effective date of this Bond, | ||||
(7) | a director or trustee of the ASSURED, but only while performing acts | |||
within the scope of the customary and usual duties of any officer or | ||||
other employee of the ASSURED or while acting as a member of any | ||||
committee duly elected or appointed to examine or audit or have | ||||
custody of or access to Property of the ASSURED, or |
ICAP Bond (5-98) | |
Form 17-02-1421 (Ed. 5-98) | Page 8 of 19 |
Conditions And | |||
Limitations | |||
Definitions | (8) | each natural person, partnership or corporation authorized by written | |
(continued) | agreement with the ASSURED to perform services as electronic data | ||
processor of checks or other accounting records related to such checks but | |||
only while such person, partnership or corporation is actually performing | |||
such services and not: | |||
a. | creating, preparing, modifying or maintaining the ASSUREDS | ||
computer software or programs, or | |||
b. | acting as transfer agent or in any other agency capacity in issuing | ||
checks, drafts or securities for the ASSURED, | |||
(9) | any partner, officer or employee of an investment advisor, an underwriter | ||
(distributor), a transfer agent or shareholder accounting recordkeeper, or an | |||
administrator, for an Investment Company while performing acts coming | |||
within the scope of the customary and usual duties of an officer or employee | |||
of an Investment Company or acting as a member of any committee duly | |||
elected or appointed to examine, audit or have custody of or access to | |||
Property of an Investment Company. | |||
The term Employee shall not include any partner, officer or employee of a | |||
transfer agent, shareholder accounting recordkeeper or administrator: | |||
a. | which is not an affiliated person (as defined in Section 2(a) of the | ||
Investment Company Act of 1940) of an Investment Company or of | |||
the investment advisor or underwriter (distributor) of such Investment | |||
Company, or | |||
b. | which is a bank (as defined in Section 2(a) of the Investment | ||
Company Act of 1940). | |||
This Bond does not afford coverage in favor of the employers of | |||
persons as set forth in e. (4), (5) and (8) above, and upon payment to | |||
the ASSURED by the COMPANY resulting directly from Larceny or | |||
Embezzlement committed by any of the partners, officers or | |||
employees of such employers, whether acting alone or in collusion with | |||
others, an assignment of such of the ASSUREDS rights and causes of | |||
action as it may have against such employers by reason of such acts | |||
so committed shall, to the extent of such payment, be given by the | |||
ASSURED to the COMPANY, and the ASSURED shall execute all | |||
papers necessary to secure to the COMPANY the rights provided for | |||
herein. | |||
Each employer of persons as set forth in e.(4), (5) and (8) above and the | |||
partners, officers and other employees of such employers shall collectively | |||
be deemed to be one person for all the purposes of this Bond; excepting, | |||
however, the fifth paragraph of Section 13. | |||
Independent contractors not specified in e.(4), (5) or (8) above, | |||
intermediaries, agents, brokers or other representatives of the same general | |||
character shall not be considered Employees. |
ICAP Bond (5-98) | |
Form 17-02-1421 (Ed. 5-98) | Page 9 of 19 |
Conditions And | ||
Limitations | ||
Definitions | f. | Forgery means the signing of the name of another natural person with the |
(continued) | intent to deceive but does not mean a signature which consists in whole or in | |
part of ones own name, with or without authority, in any capacity for any | ||
purpose. | ||
g. | Investment Company means any investment company registered under the | |
Investment Company Act of 1940 and listed under the NAME OF ASSURED | ||
on the DECLARATIONS. | ||
h. | Items of Deposit means one or more checks or drafts drawn upon a | |
financial institution in the United States of America. | ||
i. | Larceny or Embezzlement means larceny or embezzlement as defined in | |
Section 37 of the Investment Company Act of 1940. | ||
j. | Property means money, revenue and other stamps; securities; including any | |
note, stock, treasury stock, bond, debenture, evidence of indebtedness, | ||
certificate of deposit, certificate of interest or participation in any profit- | ||
sharing agreement, collateral trust certificate, preorganization certificate or | ||
subscription, transferable share, investment contract, voting trust certificate, | ||
certificate of deposit for a security, fractional undivided interest in oil, gas, or | ||
other mineral rights, any interest or instruments commonly known as a | ||
security under the Investment Company Act of 1940, any other certificate of | ||
interest or participation in, temporary or interim certificate for, receipt for, | ||
guarantee of, or warrant or right to subscribe to or purchase any of the | ||
foregoing; bills of exchange; acceptances; checks; withdrawal orders; money | ||
orders; travelers letters of credit; bills of lading; abstracts of title; insurance | ||
policies, deeds, mortgages on real estate and/or upon chattels and interests | ||
therein; assignments of such policies, deeds or mortgages; other valuable | ||
papers, including books of accounts and other records used by the | ||
ASSURED in the conduct of its business (but excluding all electronic data | ||
processing records); and, all other instruments similar to or in the nature of | ||
the foregoing in which the ASSURED acquired an interest at the time of the | ||
ASSUREDS consolidation or merger with, or purchase of the principal | ||
assets of, a predecessor or which are held by the ASSURED for any | ||
purpose or in any capacity and whether so held gratuitously or not and | ||
whether or not the ASSURED is liable therefor. | ||
k. | Relative means the spouse of an Employee or partner of the ASSURED | |
and any unmarried child supported wholly by, or living in the home of, such | ||
Employee or partner and being related to them by blood, marriage or legal | ||
guardianship. | ||
l. | Securities, documents or other written instruments means original | |
(including original counterparts) negotiable or non-negotiable instruments, or | ||
assignments thereof, which in and of themselves represent an equitable | ||
interest, ownership, or debt and which are in the ordinary course of business | ||
transferable by delivery of such instruments with any necessary | ||
endorsements or assignments. |
ICAP Bond (5-98) | |
Form 17-02-1421 (Ed. 5-98) | Page 10 of 19 |
Conditions And | |||
Limitations | |||
Definitions | m. | Subsidiary means any organization that, at the inception date of this Bond, | |
(continued) | is named in the APPLICATION or is created during the BOND PERIOD and | ||
of which more than fifty percent (50%) of the outstanding securities or voting | |||
rights representing the present right to vote for election of directors is owned | |||
or controlled by the ASSURED either directly or through one or more of its | |||
subsidiaries. | |||
n. | Transportation Company means any organization which provides its own | ||
or its leased vehicles for transportation or which provides freight forwarding | |||
or air express services. | |||
o. | Voice Initiated Election means any election concerning dividend options | ||
available to Investment Company shareholders or subscribers which is | |||
requested by voice over the telephone. | |||
p. | Voice Initiated Redemption means any redemption of shares issued by an | ||
Investment Company which is requested by voice over the telephone. | |||
q. | Voice Initiated Funds Transfer Instruction means any Voice Initiated | ||
Redemption or Voice Initiated Election. | |||
For the purposes of these definitions, the singular includes the plural and the | |||
plural includes the singular, unless otherwise indicated. | |||
General Exclusions - | 2. | This bond does not directly or indirectly cover: | |
Applicable to All Insuring | a. | loss not reported to the COMPANY in writing within sixty (60) days after | |
Clauses | termination of this Bond as an entirety; | ||
b. | loss due to riot or civil commotion outside the United States of America and | ||
Canada, or any loss due to military, naval or usurped power, war or | |||
insurrection. This Section 2.b., however, shall not apply to loss which occurs | |||
in transit in the circumstances recited in INSURING CLAUSE 3., provided | |||
that when such transit was initiated there was no knowledge on the part of | |||
any person acting for the ASSURED of such riot, civil commotion, military, | |||
naval or usurped power, war or insurrection; | |||
c. | loss resulting from the effects of nuclear fission or fusion or radioactivity; | ||
d. | loss of potential income including, but not limited to, interest and dividends | ||
not realized by the ASSURED or by any customer of the ASSURED; | |||
e. | damages of any type for which the ASSURED is legally liable, except | ||
compensatory damages, but not multiples thereof, arising from a loss | |||
covered under this Bond; | |||
f. | costs, fees and expenses incurred by the ASSURED in establishing the | ||
existence of or amount of loss under this Bond, except to the extent covered | |||
under INSURING CLAUSE 11.; | |||
g. | loss resulting from indirect or consequential loss of any nature; |
ICAP Bond (5-98) | |
Form 17-02-1421 (Ed. 5-98) | Page 11 of 19 |
Conditions And | |||||
Limitations | |||||
General Exclusions - | h. | loss resulting from dishonest acts by any member of the Board of Directors | |||
Applicable to All Insuring | or Board of Trustees of the ASSURED who is not an Employee, acting | ||||
Clauses | alone or in collusion with others; | ||||
(continued) | i. | loss, or that part of any loss, resulting solely from any violation by the | |||
ASSURED or by any Employee: | |||||
(1) | of any law regulating: | ||||
a. | the issuance, purchase or sale of securities, | ||||
b. | securities transactions on security or commodity exchanges or | ||||
the over the counter market, | |||||
c. | investment companies, | ||||
d. | investment advisors, or | ||||
(2) | of any rule or regulation made pursuant to any such law; or | ||||
j. | loss of confidential information, material or data; | ||||
k. | loss resulting from voice requests or instructions received over the | ||||
telephone, provided however, this Section 2.k. shall not apply to INSURING | |||||
CLAUSE 7. or 9. | |||||
Specific Exclusions - | 3. | This Bond does not directly or indirectly cover: | |||
Applicable To All Insuring | a. | loss caused by an Employee, provided, however, this Section 3.a. shall not | |||
Clauses Except Insuring | apply to loss covered under INSURING CLAUSE 2. or 3. which results | ||||
Clause 1. | directly from misplacement, mysterious unexplainable disappearance, or | ||||
damage or destruction of Property; | |||||
b. | loss through the surrender of property away from premises of the ASSURED | ||||
as a result of a threat: | |||||
(1) | to do bodily harm to any natural person, except loss of Property in | ||||
transit in the custody of any person acting as messenger of the | |||||
ASSURED, provided that when such transit was initiated there was no | |||||
knowledge by the ASSURED of any such threat, and provided further | |||||
that this Section 3.b. shall not apply to INSURING CLAUSE 7., or | |||||
(2) | to do damage to the premises or Property of the ASSURED; | ||||
c. | loss resulting from payments made or withdrawals from any account | ||||
involving erroneous credits to such account; | |||||
d. | loss involving Items of Deposit which are not finally paid for any reason | ||||
provided however, that this Section 3.d. shall not apply to INSURING | |||||
CLAUSE 10.; | |||||
e. | loss of property while in the mail; |
ICAP Bond (5-98) | |
Form 17-02-1421 (Ed. 5-98) | Page 12 of 19 |
Conditions And | |||
Limitations | |||
Specific Exclusions - | f. | loss resulting from the failure for any reason of a financial or depository | |
Applicable To All Insuring | institution, its receiver or other liquidator to pay or deliver funds or other | ||
Clauses Except Insuring | Property to the ASSURED provided further that this Section 3.f. shall not | ||
Clause 1. | apply to loss of Property resulting directly from robbery, burglary, | ||
(continued) | misplacement, mysterious unexplainable disappearance, damage, | ||
destruction or removal from the possession, custody or control of the | |||
ASSURED. | |||
g. | loss of Property while in the custody of a Transportation Company, | ||
provided however, that this Section 3.g. shall not apply to INSURING | |||
CLAUSE 3.; | |||
h. | loss resulting from entries or changes made by a natural person with | ||
authorized access to a Computer System who acts in good faith on | |||
instructions, unless such instructions are given to that person by a software | |||
contractor or its partner, officer, or employee authorized by the ASSURED to | |||
design, develop, prepare, supply, service, write or implement programs for | |||
the ASSUREDs Computer System; or | |||
i. | loss resulting directly or indirectly from the input of data into a Computer | ||
System terminal, either on the premises of the customer of the ASSURED | |||
or under the control of such a customer, by a customer or other person who | |||
had authorized access to the customers authentication mechanism. | |||
Specific Exclusions - | 4. | This bond does not directly or indirectly cover: | |
Applicable To All Insuring | a. | loss resulting from the complete or partial non-payment of or default on any | |
Clauses Except Insuring | loan whether such loan was procured in good faith or through trick, artifice, | ||
Clauses 1., 4., And 5. | fraud or false pretenses; provided, however, this Section 4.a. shall not apply | ||
to INSURING CLAUSE 8.; | |||
b. | loss resulting from forgery or any alteration; | ||
c. | loss involving a counterfeit provided, however, this Section 4.c. shall not | ||
apply to INSURING CLAUSE 5. or 6. | |||
Limit Of Liability/Non- | 5 | At all times prior to termination of this Bond, this Bond shall continue in force for | |
Reduction And Non- | the limit stated in the applicable sections of ITEM 2. of the DECLARATIONS, | ||
Accumulation Of Liability | notwithstanding any previous loss for which the COMPANY may have paid or be | ||
liable to pay under this Bond provided, however, that the liability of the COMPANY | |||
under this Bond with respect to all loss resulting from: | |||
a. | any one act of burglary, robbery or hold-up, or attempt thereat, in which no | ||
Employee is concerned or implicated, or | |||
b. | any one unintentional or negligent act on the part of any one person | ||
resulting in damage to or destruction or misplacement of Property, or | |||
c. | all acts, other than those specified in a. above, of any one person, or |
ICAP Bond (5-98) | |
Form 17-02-1421 (Ed. 5-98) | Page 13 of 19 |
Conditions And | |||
Limitations | |||
Limit Of Liability/Non- | d. | any one casualty or event other than those specified in a., b., or c. above, | |
Reduction And Non- | shall be deemed to be one loss and shall be limited to the applicable LIMIT OF | ||
Accumulation Of Liability | LIABILITY stated in ITEM 2. of the DECLARATIONS of this Bond irrespective of | ||
(continued) | the total amount of such loss or losses and shall not be cumulative in amounts | ||
from year to year or from period to period. | |||
All acts, as specified in c. above, of any one person which | |||
i. | directly or indirectly aid in any way wrongful acts of any other person or | ||
persons, or | |||
ii. | permit the continuation of wrongful acts of any other person or persons | ||
whether such acts are committed with or without the knowledge of the wrongful | |||
acts of the person so aided, and whether such acts are committed with or without | |||
the intent to aid such other person, shall be deemed to be one loss with the | |||
wrongful acts of all persons so aided. | |||
Discovery | 6. | This Bond applies only to loss first discovered by an officer of the ASSURED | |
during the BOND PERIOD. Discovery occurs at the earlier of an officer of the | |||
ASSURED being aware of: | |||
a. | facts which may subsequently result in a loss of a type covered by this Bond, | ||
or | |||
b. | an actual or potential claim in which it is alleged that the ASSURED is liable | ||
to a third party, | |||
regardless of when the act or acts causing or contributing to such loss occurred, | |||
even though the amount of loss does not exceed the applicable DEDUCTIBLE | |||
AMOUNT, or the exact amount or details of loss may not then be known. | |||
Notice To Company - | 7. | a. | The ASSURED shall give the COMPANY notice thereof at the earliest |
Proof - Legal Proceedings | practicable moment, not to exceed sixty (60) days after discovery of loss, in | ||
Against Company | an amount that is in excess of 50% of the applicable DEDUCTIBLE | ||
AMOUNT, as stated in ITEM 2. of the DECLARATIONS. | |||
b. | The ASSURED shall furnish to the COMPANY proof of loss, duly sworn to, | ||
with full particulars within six (6) months after such discovery. | |||
c. | Securities listed in a proof of loss shall be identified by certificate or bond | ||
numbers, if issued with them. | |||
d. | Legal proceedings for the recovery of any loss under this Bond shall not be | ||
brought prior to the expiration of sixty (60) days after the proof of loss is filed | |||
with the COMPANY or after the expiration of twenty-four (24) months from | |||
the discovery of such loss. | |||
e. | This Bond affords coverage only in favor of the ASSURED. No claim, suit, | ||
action or legal proceedings shall be brought under this Bond by anyone | |||
other than the ASSURED. |
ICAP Bond (5-98) | |
Form 17-02-1421 (Ed. 5-98) | Page 14 of 19 |
Conditions And | |||
Limitations | |||
Notice To Company - | f. | Proof of loss involving Voice Initiated Funds Transfer Instruction shall | |
Proof - Legal Proceedings | include electronic recordings of such instructions. | ||
Against Company | |||
(continued) | |||
Deductible Amount | 8. | The COMPANY shall not be liable under any INSURING CLAUSES of this Bond | |
on account of loss unless the amount of such loss, after deducting the net amount | |||
of all reimbursement and/or recovery obtained or made by the ASSURED, other | |||
than from any Bond or policy of insurance issued by an insurance company and | |||
covering such loss, or by the COMPANY on account thereof prior to payment by | |||
the COMPANY of such loss, shall exceed the DEDUCTIBLE AMOUNT set forth in | |||
ITEM 3. of the DECLARATIONS, and then for such excess only, but in no event | |||
for more than the applicable LIMITS OF LIABILITY stated in ITEM 2. of the | |||
DECLARATIONS. | |||
There shall be no deductible applicable to any loss under INSURING CLAUSE 1. | |||
sustained by any Investment Company. | |||
Valuation | 9. | BOOKS OF ACCOUNT OR OTHER RECORDS | |
The value of any loss of Property consisting of books of account or other records | |||
used by the ASSURED in the conduct of its business shall be the amount paid by | |||
the ASSURED for blank books, blank pages, or other materials which replace the | |||
lost books of account or other records, plus the cost of labor paid by the | |||
ASSURED for the actual transcription or copying of data to reproduce such books | |||
of account or other records. | |||
The value of any loss of Property other than books of account or other records | |||
used by the ASSURED in the conduct of its business, for which a claim is made | |||
shall be determined by the average market value of such Property on the | |||
business day immediately preceding discovery of such loss provided, however, | |||
that the value of any Property replaced by the ASSURED with the consent of the | |||
COMPANY and prior to the settlement of any claim for such Property shall be the | |||
actual market value at the time of replacement. | |||
In the case of a loss of interim certificates, warrants, rights or other securities, the | |||
production of which is necessary to the exercise of subscription, conversion, | |||
redemption or deposit privileges, the value of them shall be the market value of | |||
such privileges immediately preceding their expiration if said loss is not discovered | |||
until after their expiration. If no market price is quoted for such Property or for | |||
such privileges, the value shall be fixed by agreement between the parties. | |||
OTHER PROPERTY | |||
The value of any loss of Property, other than as stated above, shall be the actual | |||
cash value or the cost of repairing or replacing such Property with Property of | |||
like quality and value, whichever is less. |
ICAP Bond (5-98) | |
Form 17-02-1421 (Ed. 5-98) | Page 15 of 19 |
Conditions And | |||
Limitations | |||
(continued) | |||
Securities Settlement | 10. | In the event of a loss of securities covered under this Bond, the COMPANY may, | |
at its sole discretion, purchase replacement securities, tender the value of the | |||
securities in money, or issue its indemnity to effect replacement securities. | |||
The indemnity required from the ASSURED under the terms of this Section | |||
against all loss, cost or expense arising from the replacement of securities by the | |||
COMPANYS indemnity shall be: | |||
a. | for securities having a value less than or equal to the applicable | ||
DEDUCTIBLE AMOUNT - one hundred (100%) percent; | |||
b. | for securities having a value in excess of the DEDUCTIBLE AMOUNT but | ||
within the applicable LIMIT OF LIABILITY - the percentage that the | |||
DEDUCTIBLE AMOUNT bears to the value of the securities; | |||
c. | for securities having a value greater than the applicable LIMIT OF LIABILITY | ||
- the percentage that the DEDUCTIBLE AMOUNT and portion in excess of | |||
the applicable LIMIT OF LIABILITY bears to the value of the securities. | |||
The value referred to in Section 10.a., b., and c. is the value in accordance with | |||
Section 9, VALUATION, regardless of the value of such securities at the time the | |||
loss under the COMPANYS indemnity is sustained. | |||
The COMPANY is not required to issue its indemnity for any portion of a loss of | |||
securities which is not covered by this Bond; however, the COMPANY may do so | |||
as a courtesy to the ASSURED and at its sole discretion. | |||
The ASSURED shall pay the proportion of the Companys premium charge for the | |||
Companys indemnity as set forth in Section 10.a., b., and c. No portion of the | |||
LIMIT OF LIABILITY shall be used as payment of premium for any indemnity | |||
purchased by the ASSURED to obtain replacement securities. | |||
Subrogation - Assignment - | 11. | In the event of a payment under this Bond, the COMPANY shall be subrogated to | |
Recovery | all of the ASSUREDS rights of recovery against any person or entity to the extent | ||
of such payment. On request, the ASSURED shall deliver to the COMPANY an | |||
assignment of the ASSUREDS rights, title and interest and causes of action | |||
against any person or entity to the extent of such payment. | |||
Recoveries, whether effected by the COMPANY or by the ASSURED, shall be | |||
applied net of the expense of such recovery in the following order: | |||
a. | first, to the satisfaction of the ASSUREDS loss which would otherwise have | ||
been paid but for the fact that it is in excess of the applicable LIMIT OF | |||
LIABILITY, | |||
b. | second, to the COMPANY in satisfaction of amounts paid in settlement of | ||
the ASSUREDS claim, | |||
c. | third, to the ASSURED in satisfaction of the applicable DEDUCTIBLE | ||
AMOUNT, and |
ICAP Bond (5-98) | |
Form 17-02-1421 (Ed. 5-98) | Page 16 of 19 |
Conditions And | |||
Limitations | |||
Subrogation - Assignment - | d. | fourth, to the ASSURED in satisfaction of any loss suffered by the | |
Recovery | ASSURED which was not covered under this Bond. | ||
(continued) | Recovery from reinsurance or indemnity of the COMPANY shall not be deemed a | ||
recovery under this section. | |||
Cooperation Of Assured | 12. | At the COMPANYS request and at reasonable times and places designated by | |
the COMPANY, the ASSURED shall: | |||
a. | submit to examination by the COMPANY and subscribe to the same under | ||
oath, | |||
b. | produce for the COMPANYS examination all pertinent records, and | ||
c. | cooperate with the COMPANY in all matters pertaining to the loss. | ||
The ASSURED shall execute all papers and render assistance to secure to the | |||
COMPANY the rights and causes of action provided for under this Bond. The | |||
ASSURED shall do nothing after loss to prejudice such rights or causes of action. | |||
Termination | 13. | If the Bond is for a sole ASSURED, it shall not be terminated unless written notice | |
shall have been given by the acting party to the affected party and to the | |||
Securities and Exchange Commission, Washington, D.C., not less than sixty (60) | |||
days prior to the effective date of such termination. | |||
If the Bond is for a joint ASSURED, it shall not be terminated unless written notice | |||
shall have been given by the acting party to the affected party, and by the | |||
COMPANY to all ASSURED Investment Companies and to the Securities and | |||
Exchange Commission, Washington, D.C., not less than sixty (60) days prior to | |||
the effective date of such termination. | |||
This Bond will terminate as to any one ASSURED, other than an Investment | |||
Company: | |||
a. | immediately on the taking over of such ASSURED by a receiver or other | ||
liquidator or by State or Federal officials, or | |||
b. | immediately on the filing of a petition under any State or Federal statute | ||
relative to bankruptcy or reorganization of the ASSURED, or assignment for | |||
the benefit of creditors of the ASSURED, or | |||
c. | immediately upon such ASSURED ceasing to exist, whether through merger | ||
into another entity, disposition of all of its assets or otherwise. | |||
The COMPANY shall refund the unearned premium computed at short rates in | |||
accordance with the standard short rate cancellation tables if terminated by the | |||
ASSURED or pro rata if terminated for any other reason. |
ICAP Bond (5-98) | |
Form 17-02-1421 (Ed. 5-98) | Page 17 of 19 |
Conditions And | |||
Limitations | |||
Termination | If any partner, director, trustee, or officer or supervisory employee of an | ||
(continued) | ASSURED not acting in collusion with an Employee learns of any dishonest act | ||
committed by such Employee at any time, whether in the employment of the | |||
ASSURED or otherwise, whether or not such act is of the type covered under this | |||
Bond, and whether against the ASSURED or any other person or entity, the | |||
ASSURED: | |||
a. | shall immediately remove such Employee from a position that would enable | ||
such Employee to cause the ASSURED to suffer a loss covered by this | |||
Bond; and | |||
b. | within forty-eight (48) hours of learning that an Employee has committed | ||
any dishonest act, shall notify the COMPANY, of such action and provide full | |||
particulars of such dishonest act. | |||
The COMPANY may terminate coverage as respects any Employee sixty (60) | |||
days after written notice is received by each ASSURED Investment Company | |||
and the Securities and Exchange Commission, Washington, D.C. of its desire to | |||
terminate this Bond as to such Employee. | |||
Other Insurance | 14. | Coverage under this Bond shall apply only as excess over any valid and collectible | |
insurance, indemnity or suretyship obtained by or on behalf of: | |||
a. | the ASSURED, | ||
b. | a Transportation Company, or | ||
c. | another entity on whose premises the loss occurred or which employed the | ||
person causing the loss or engaged the messenger conveying the Property | |||
involved. | |||
Conformity | 15. | If any limitation within this Bond is prohibited by any law controlling this Bonds | |
construction, such limitation shall be deemed to be amended so as to equal the | |||
minimum period of limitation provided by such law. | |||
Change or Modification | 16. | This Bond or any instrument amending or affecting this Bond may not be changed | |
or modified orally. No change in or modification of this Bond shall be effective | |||
except when made by written endorsement to this Bond signed by an authorized | |||
representative of the COMPANY. | |||
If this Bond is for a sole ASSURED, no change or modification which would | |||
adversely affect the rights of the ASSURED shall be effective prior to sixty (60) | |||
days after written notice has been furnished to the Securities and Exchange | |||
Commission, Washington, D.C., by the acting party. |
ICAP Bond (5-98) | |
Form 17-02-1421 (Ed. 5-98) | Page 18 of 19 |
Conditions And | |
Limitations | |
Change or Modification | If this Bond is for a joint ASSURED, no charge or modification which would |
(continued) | adversely affect the rights of the ASSURED shall be effective prior to sixty (60) |
days after written notice has been furnished to all insured Investment Companies | |
and to the Securities and Exchange Commission, Washington, D.C., by the | |
COMPANY. |
ICAP Bond (5-98) | |
Form 17-02-1421 (Ed. 5-98) | Page 19 of 19 |
Effective date of | ||
this endorsement: April 1, 2010 | VIGILANT INSURANCE COMPANY | |
Endorsement No.: 1 DFI | ||
To be attached to and form a part of Bond | ||
Number: | 81392053 | |
Issued to: CENTRAL SECURITIES CORPORATION | ||
COMPLIANCE WITH APPLICABLE TRADE SANCTION LAWS RIDER | ||
It is agreed that this insurance does not apply to the extent that trade or economic sanctions or other laws | ||
or regulations prohibit the coverage provided by this insurance. | ||
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED. |
Date: April 20, 2010
Form 14-02-9228 (Ed. 4/2004)
ENDORSEMENT/RIDER | |||
Effective date of | |||
this endorsement/rider: April 1, 2010 | VIGILANT INSURANCE COMPANY | ||
Endorsement/Rider No. | 2 DFI | ||
To be attached to and | |||
form a part of Bond No. | 81392053 | ||
Issued to: CENTRAL SECURITIES CORPORATION | |||
DELETING VALUATION-OTHER PROPERTY AND AMENDING CHANGE OR MODIFICATION | |||
ENDORSEMENT | |||
In consideration of the premium charged, it is agreed that this Bond is amended as follows: | |||
1. | The paragraph titled Other Property in Section 9, Valuation, is deleted in its entirety. | ||
2. | The third paragraph in Section 16, Change or Modification, is deleted in its entirety and replaced | ||
with the following: | |||
If this Bond is for a joint ASSURED, no change or modification which would adversely affect the | |||
rights of the ASSURED shall be effective prior to sixty (60) days after written notice has been | |||
furnished to all insured Investment Companies and the Securities and Exchange Commission, | |||
Washington, D.C., by the COMPANY. | |||
The title and any headings in this endorsement/rider are solely for convenience and form no part of the | |||
terms and conditions of coverage. | |||
All other terms, conditions and limitations of this Bond shall remain unchanged. |
17-02-2437 (12/2006) rev.
Page 1
VIGILANT INSURANCE COMPANY | ||||
Endorsement No.: 3 DFI | ||||
Bond Number: | 81392053 | |||
NAME OF ASSURED: CENTRAL SECURITIES CORPORATION | ||||
NEW YORK AMENDATORY ENDORSEMENT | ||||
It is agreed that this Bond is amended as follows: | ||||
1. | By adding to Section 13, Termination, the following: | |||
Bonds In Effect Sixty (60) Days Or Less | ||||
If this Bond has been in effect for less than sixty (60) days and if it is not a renewal Bond, the | ||||
COMPANY may terminate it for any reason by mailing or delivering to the ASSURED and to the | ||||
authorized agent or broker, if any, written notice of termination at least sixty (60) days before the | ||||
effective date of termination. | ||||
Bonds In Effect More Than Sixty (60) Days | ||||
If this Bond has been in effect for sixty (60) days or more, or if it is a renewal of a Bond issued by the | ||||
COMPANY, it may be terminated by the COMPANY by mailing or delivering to the ASSURED and to | ||||
the authorized agent or broker, if any, written notice of termination at least sixty (60) days before the | ||||
effective date of termination. Furthermore, when the Bond is a renewal or has been in effect for sixty | ||||
(60) days or more, the COMPANY may terminate only for one or more of the reasons stated in 1-7 | ||||
below. | ||||
1. | Nonpayment of premium; | |||
2. | Conviction of a crime arising out of acts increasing the hazard insured against ; | |||
3. | Discovery of fraud or material misrepresentation in the obtaining of this Bond or in the | |||
presentation of a claim thereunder; | ||||
4. | Violation of any provision of this Bond that substantially and materially increases the hazard | |||
insured against, and which occurred subsequent to inception of the current BOND PERIOD; | ||||
5. | If applicable, material physical change in the property insured, occurring after issuance or last | |||
annual renewal anniversary date of this Bond, which results in the property becoming uninsurable | ||||
in accordance with the COMPANYs objective, uniformly applied underwriting standards in effect | ||||
at the time this Bond was issued or last renewed; or material change in the nature or extent of this | ||||
Bond occurring after issuance or last annual renewal anniversary date of this Bond, which causes | ||||
the risk of loss to be substantially and materially increased beyond that contemplated at the time | ||||
this Bond was issued or last renewed; |
ICAP Bond - New York | |
Form 17-02-2863 (Rev. 7-03) | Page 1 |
6. | A determination by the Superintendent of Insurance that continuation of the present premium | ||
volume of the COMPANY would jeopardize the COMPANYs policyholders, creditors or the public, | |||
or continuing the Bond itself would place the COMPANY in violation of any provision of the New | |||
York Insurance Code; or | |||
7. | Where the COMPANY has reason to believe, in good faith and with sufficient cause, that there is | ||
a probable risk or danger that the Property will be destroyed by the ASSURED for the purpose of | |||
collecting the insurance proceeds. | |||
Notice Of Termination | |||
Notice of termination under this SECTION shall be mailed to the ASSURED and to the authorized agent | |||
or broker, if any, at the address shown on the DECLARATIONS of this Bond. The COMPANY, | |||
however, may deliver any notice instead of mailing it. | |||
Return Premium Calculations | |||
The COMPANY shall refund the unearned premium computed pro rata if this Bond is terminated by the | |||
COMPANY. | |||
2. | By adding a new Section reading as follows: | ||
Section 17. Election To Conditionally Renew / Nonrenew This Bond | |||
Conditional Renewal | |||
If the COMPANY conditionally renews this Bond subject to: | |||
1. | Change of limits of liability ; | ||
2. | Change in type of coverage; | ||
3. | Reduction of coverage; | ||
4. | Increased deductible; | ||
5. | Addition of exclusion; or | ||
6. | Increased premiums in excess of 10%, exclusive of any premium increase due to and | ||
commensurate with insured value added; or as a result of experience rating, retrospective rating | |||
or audit; the COMPANY shall send notice as provided in Notices Of Nonrenewal And Conditional | |||
Renewal immediately below. | |||
Notices Of Nonrenewal And Conditional Renewal | |||
1. | If the COMPANY elects not to renew this Bond, or to conditionally renew this Bond as provided | ||
herein, the COMPANY shall mail or deliver written notice to the ASSURED at least sixty (60) but | |||
not more than one hundred twenty (120) days before: | |||
a. | The expiration date; or | ||
b. | The anniversary date if this Bond has been written for a term of more than one year. |
ICAP Bond - New York | |
Form 17-02-2863 (Rev. 7-03) | Page 2 |
2. | Notice shall be mailed or delivered to the ASSURED at the address shown on the | |
DECLARATIONS of this Bond and the authorized agent or broker, if any. If notice is mailed, proof | ||
of mailing shall be sufficient proof of notice. | ||
3. | Paragraphs 1. and 2. immediately above shall not apply when the ASSURED, authorized agent or | |
broker, or another insurer has mailed or delivered written notice to the COMPANY that the Bond | ||
has been replaced or is no longer desired. | ||
3. | By adding to General Agreement B., Representations Made By Assured, the following: | |
No misrepresentation shall be deemed material unless knowledge by the COMPANY would have lead | ||
to the COMPANYS refusal to write this Bond. | ||
This Endorsement applies to loss discovered after 12:01 a.m. on April 1, 2010. | ||
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED. |
Date: April 20, 2010
ICAP Bond - New York | |
Form 17-02-2863 (Rev. 7-03) | Page 3 |
IMPORTANT NOTICE TO POLICYHOLDERS |
All of the members of the Chubb Group of Insurance companies doing business in the United |
States (hereinafter Chubb) distribute their products through licensed insurance brokers and agents |
(producers). Detailed information regarding the types of compensation paid by Chubb to producers on |
US insurance transactions is available under the Producer Compensation link located at the bottom of the |
page at www.chubb.com, or by calling 1-866-588-9478. Additional information may be available from |
your producer. |
Thank you for choosing Chubb. |
10-02-1295 (ed. 6/2007)
POLICYHOLDER |
DISCLOSURE NOTICE OF |
TERRORISM INSURANCE COVERAGE |
(for policies with no terrorism exclusion or sublimit) |
You are hereby notified that, under the Terrorism Risk Insurance Act (the Act), effective |
December 26, 2007, this policy makes available to you insurance for losses arising out of |
certain acts of terrorism. Terrorism is defined as any act certified by the Secretary of the |
Treasury, in concurrence with the Secretary of State and the Attorney General of the |
United States, to be an act of terrorism; to be a violent act or an act that is dangerous to |
human life, property or infrastructure; to have resulted in damage within the United |
States, or outside the United States in the case of an air carrier or vessel or the premises |
of a United States Mission; and to have been committed by an individual or individuals as |
part of an effort to coerce the civilian population of the United States or to influence the |
policy or affect the conduct of the United States Government by coercion. |
You should know that the insurance provided by your policy for losses caused by acts of |
terrorism is partially reimbursed by the United States under the formula set forth in the |
Act. Under this formula, the United States pays 85% of covered terrorism losses that |
exceed the statutorily established deductible to be paid by the insurance company |
providing the coverage. |
However, if aggregate insured losses attributable to terrorist acts certified under the Act |
exceed $100 billion in a Program Year (January 1 through December 31), the Treasury |
shall not make any payment for any portion of the amount of such losses that exceeds |
$100 billion. |
10-02-1281 (Ed. 1/2003)
If aggregate insured losses attributable to terrorist acts certified under the Act exceed |
$100 billion in a Program Year (January 1 through December 31) and we have met our |
insurer deductible under the Act, we shall not be liable for the payment of any portion of |
the amount of such losses that exceeds $100 billion, and in such case insured losses up |
to that amount are subject to pro rata allocation in accordance with procedures |
established by the Secretary of the Treasury. |
The portion of your policys annual premium that is attributable to insurance for such acts |
of terrorism is: $ -0-. |
If you have any questions about this notice, please contact your agent or broker. |
10-02-1281 (Ed. 1/2003)