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| Name | Symbol | Market | Type |
|---|---|---|---|
| Fidelity Limited Term Bond ETF | AMEX:FLTB | AMEX | Exchange Traded Fund |
| Price Change | % Change | Price | High Price | Low Price | Open Price | Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|
| -0.015 | -0.03% | 49.22 | 49.48 | 49.04 | 49.48 | 6,430 | 21:00:06 |
|
Jason Duffy Vice President |
Insurance & Risk Management FMR LLC 245 Summer St., V7E, Boston, MA, 02210 Phone: 617-563-9480: Fax: 617-385-0811 jason.duffy@fmr.com |
May 19, 2020
U.S. Securities and Exchange Commission
Judiciary Plaza
450 Fifth Street, NW
Washington, DC 20543
|
RE: |
Fidelity Investments Mutual Funds (FMR LLC) Rule 17g Compliance Filing Fidelity Bond Coverage Period: July 1, 2019 – July 1, 2020 |
To Whom It May Concern:
We submit the following excess bond policies on behalf of Fidelity Investments Mutual Funds for $70,000,000 excess of $150,000,000 in coverage:
London: Syndicates ACE AGM 2488
Policy No: B050113017P19 (Equity and High Income Funds)
Policy No: B080113011P19 (Fixed Income & Asset Allocation Funds) Participation: $40M part of $70M x $150M
ICI Mutual Insurance Company
Policy No: 87153219B (Equity and High Income Funds)
Policy No: 87153110B (Fixed Income & Asset Allocation Funds) Participation: $15M part of $70M x $150M
Federal Insurance Company (Chubb)
Policy No: 81906761 (Equity and High Income Funds)
Policy No: 82179281 (Fixed Income & Asset Allocation Funds) Participation: $5M part of $70M x $150M
XL Specialty Insurance Company
Policy No: ELU162150-19 (Equity and High Income Funds)
Policy No: ELU162155-19 (Fixed Income & Asset Allocation Funds) Participation: $10M part of $70M x $150M
The lead bond insurance policy, statement confirming payment of premiums, resolution of a majority of independent trustees approving coverage, joint insured bond statement, and the Fidelity Bond Insurance Recovery Agreement have been submitted. The accession number is 0000880195-20-000002.
| Willis Limited | ||
| 51 Lime Street London | ||
| Telephone: +44 (0)2031246000 | Fax: +44 (0)2031248223 | Website: www.willistowerswatson.com |
CONTRACT
OF
INSURANCE
|
Unique Market Reference (UMR): Insured: |
B080113017P19 Fidelity Equity and High Income Funds as more fully defined in the Contract Wording. |
|
Principal Address: |
FMR LLC 155 Seaport Blvd., ZW9C. Boston, Massachusetts 02210, United States of America Mailing Address: C/O FMR LLC 200 Seaport Blvd., ZW9C. Boston, Massachusetts 02210, United States of America |
|
Type: |
Excess Professional Liability, Management Liability Insurance as further defined in the underlying primary contract issued by National Union Fire Insurance Company of Pittsburgh, PA as more fully defined in the Contract Wording |
|
Period: |
From: 01 July 2019 To: 1 July 2020 Both Days at 00:01/local standard time at the above address of the Insured |
Willis Limited, Lloyd's brokers. A Willis Towers Watson Company. Willis Limited is authorised and regulated by the Financial Conduct Authority. Registered office 51 Lime Street, London EC3M 7DQ. Registered number 181116 England and Wales. Registered VAT number GB 334 1289 70
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LIMIT OF LIABILITY:
RETENTION:
TERRITORIAL LIMIT:
CONDITIONS:
B0801Q13017P19 Willis Limited FINEXSlip1939236142.doc
USD 40,000,000 any one loss/claim and in the aggregate for the period part of USD 70,000,000 any one loss/claim and in the aggregate for the period
in excess of underlying contracts for
USD 150,000,000 any one loss/claim and in the aggregate for the period the details of which are held on file in the offices of Willis Limited
Primary contract Retentions detailed as per National Union Fir Insurance Company of Pittsburgh.
Worldwide
All terms and conditions as set forth in the wording, such wording being Willis Excess Financial Lines Policy Wording as attached amended by and incorporating the following:
| 1. | NMA 2975 (amended) Special Cancellation Clause 30/5/03, as attached. |
| 2. | LMA 5218 U.S. Terrorism Risk Insurance Act of 2002 As Amended New And Renewal Business Endorsement 12/1/2015 amended, as attached. |
| 3. | NMA 2918 (amended) War and Terrorism Exclusion Endorsement 8/10/2001, as attached. |
| 4. | Premium Payment Clause LSW 3001, as attached |
| 5. | NMA 1256 Nuclear Incident Exclusion Clause - Liability - Direct (Broad) 17/3/60, as attached. |
| 6. | NMA 1477 Radioactive Contamination Exclusion Clause - Liability - Direct (13/02/64), as attached. |
| 7. | Service of Suit Claus NMA 1998, as attached. |
| 8. | Sanctions Clause, as attached |
| 9. | NMA Lines Clause NMA 2419 |
| 10. | IUA 09-054 Foreign Account Tax Compliance Act |
| (“FATCA”), as attached. | |
| 11. | INSTITUTE RADIOACTIVE CONTAMINATION, CHEMICAL, BIOLOGICAL, BIO.CHEMICAL AND |
| ELECTROMAGNETIC WEAPONS EXCLUSION CLAUSE, as attached. | |
| 12. | Losses to be notified to Insurers via:- Willis Limited Finex Global - Claims Department 51 Lime Street London EC3M 7DQ |
| United Kingdom |
Nothing in this Contract shall be construed as a condition precedent or a warranty unless it is expressly stated as such in the Contract
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| TAXES PAYABLE BY | ||
| INSURED AND | ||
| ADMINISTERED BY | ||
| INSURERS: | None | |
| Page 3 | ||
| B0801Q13017P19 | ||
| Willis Limited | ||
| FINEXSlip1939236142.doc | ||
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|
TAXES PAYABLE BY INSURERS AND ADMINISTERED BY INSURED OR THEIR AGENT: |
None 30% FATCA Withholding Tax only to apply in accordance with the provisions of IUA 09-054. |
|
RECORDING, TRANSMITTING AND STORING INFORMATION: |
Where Willis Limited maintains risk and claims data/information/ documents Willis Limited may hold data/information/documents electronically. |
|
INSURER CONTRACT DOCUMENTATION: |
This contract document details the current terms entered into by the insurer(s) and constitutes the contract document. Any further documentation changing this contract agreed in accordance with the contract change provisions set out in this contract, shall form the evidence of such change. |
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|
NOTICE OF CANCELLATION PROVISIONS: |
Where (re)insurers have the right to give notice of cancellation, in accordance with the provisions of the contract, then: To the extent provided by the contract, the Slip Leader is authorised to issue such notice on behalf of all participating (re)insurers; and (optionally) any (re)insurer may issue such notice in respect of its own participation. The content and format of any such notice should be in accordance with the ‘Notice of Cancellation’ standard, as published by the London Market Group (LMG), or their successor body, on behalf of London Market Associations and participants. However failure to comply with this standard will not affect the validity of the notice given. The notice shall be provided to the broker by the following means: By an email to FINEXNOC@willis.com Failure to comply with this delivery requirement will make the notice null and void. Satisfactory delivery of the notice will cause it to be effective irrespective of whether the broker has acknowledged receipt. |
WILLIS EXCESS FINANCIAL LINES POLICY
Please read this Policy carefully.
SCHEDULE
Policy Number: B080113017P19
| Item 1: | Insured: | Fidelity Equity and High Income Funds |
| Principal Address: | FMR LLC | |
| 155 Seaport Blvd. | ||
| ZW9C | ||
| Boston | ||
| Massachusetts 02210 | ||
| United States of America | ||
| Page 5 | ||
| B0801Q13017P19 | ||
| Willis Limited | ||
| FINEXSlip1939236142.doc | ||
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| EC3M 7HA | |||
| United Kingdom. | |||
| Telephone: | +44 | (0)207 327 5693 | |
| Facsimile: | +44 | (0)207 327 5225 | |
| Email: | Complaints@Lloyds.com | ||
| (b) | For all other Insurers: | ||
| Willis Limited will provide details on request. | |||
WILLIS EXCESS FINANCIAL LINES POLICY
In consideration of the Insured having paid or agreed to pay the Premium and subject to all of the definitions, terms, conditions and limitations of this Policy, Insurers and the Insured agree as follows:
| 1. | Insuring Agreement | |
| 1.1 | Except insofar as the express terms of this Policy: | |
| (a) | make specific provision in respect of any matter for which specific provision is also made in the Primary Policy, in which case the express terms of this Policy shall prevail; or | |
| (b) | make specific provision in respect of any matter for which no specific provision is made in the Primary Policy, in which case the express terms of this Policy shall apply; | |
| this | Policy shall take effect and operate in accordance with the terms of the Primary Policy. | |
| 1.2 | Subject to the Limit of Liability, the Insurers shall pay to or on behalf of the Insured that | |
| proportion | of Loss which exceeds the Underlying Limit. | |
| 1.3 | Except as provided specifically to the contrary in this Policy, the Insurers shall have no | |
| liability | to make payment for any Loss under this Policy until the Underlying Limit has been | |
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completely eroded by amounts which the Insured or insurers of any Side A/Difference in Conditions Policy or insurers of the Underlying Policy(ies) shall have paid the Underlying Limit.
2. Definitions
Wherever the following words and phrases appear in bold and italics in this Policy they shall have the meanings given to them below:
"Claim" or "Circumstance" shall mean “claim”, “circumstance” or any other term by which the
Primary Policy identifies matters potentially giving rise to payments thereunder in respect of Loss.
"Insured" shall mean those persons and organisations identified at Item 1 of the Schedule and all other persons and organisations as are insured or otherwise entitled to indemnity under the Primary Policy.
"Insurers" shall mean the insurers of this Policy identified at Item 2 of the Schedule.
"Limit of Liability" shall mean the sum(s) shown at Item 4 of the Schedule being the maximum sum(s) the Insurers are liable to pay under this Policy for all Loss, subject to any reinstatement of limit expressly provided for at Item 4 of the Schedule. For the avoidance of doubt, there shall be no reinstatement of the Limit of Liability unless expressly provided for at Item 4, notwithstanding that the Primary Policy may provide for one or more reinstatements.
"Loss" shall mean all and any amounts for which Insurers are liable to the Insured pursuant to the terms and conditions of this Policy and, for the avoidance of doubt and subject only to the operation of any express terms hereof in accordance with clause 1.1 above, this Policy shall be liable to pay as Loss all losses, costs, liabilities or damages and other expenses of the Insured as are covered by the Primary Policy of whatever nature and howsoever described by the Primary Policy. However, and notwithstanding any provision to the contrary in the Primary Policy, the liability of the Insurers of this Policy to the Insured for costs and expenses of any kind whatsoever shall be part of, and not in addition to, the Limit of Liability.
"Period of Insurance" shall mean the period set out at Item 3 of the Schedule.
"Policy" shall mean this insurance contract which includes any endorsements and schedules hereto.
"Premium" shall mean the sum shown at Item 6 of the Schedule.
“Primary Limits” shall mean the limits of liability of the Primary Policy applicable to any loss or liability (as applicable) as set out in Item 5(a) of the Schedule.
"Primary Policy" shall mean the policy identified at Item 5(a) of the Schedule or any policy(ies) issued in substitution thereof.
"Relevant Provision" shall mean any provision of an Underlying Policy which reduces the limit of liability of the Underlying Policy automatically by reference to the amount paid or payable under another policy of insurance, or by reference to the limit of liability under another policy of insurance.
For the avoidance of doubt, a provision which provides that an Underlying Policy shall pay only the amount by which any loss or liability (as applicable) exceeds the amount paid or payable under any
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other policy or policies, or which allows the insurer credit for the value of other insurance or indemnification, or which requires the Insured to pursue such insurance or indemnification prior to claiming under the Underlying Policy (such as an “other insurance” or “non-contribution” or other similar provision), shall not be a Relevant Provision.
"Schedule" shall mean the schedule to this Policy.
"Sublimit(s)" shall mean any limit or limits of insurers' liability in the Primary Policy imposed in respect of a particular category of loss or liability (as applicable) and which specifies that the maximum liability of the insurer shall be less than the otherwise generally applicable limit of liability of the Primary Policy.
"Underlying Limit" shall mean the cumulative total of the limits of liability of the insurer(s) of the Underlying Policy(ies) applicable to any loss or liability (as applicable) as set out in Item 5 of the
Schedule.
"Underlying Policy(ies)" shall mean the policies listed at Item 5 of the Schedule.
3. Maintenance of the Underlying Policy(ies)
The Primary Policy, or any policies issued in substitution thereof, shall be maintained in full force and effect during the Period of Insurance save to the extent that it is eroded. This obligation shall cease to apply in the event that the Primary Policy is completely eroded. Clause 1.3 hereof shall apply for the purposes of determining whether and to what extent erosion has occurred. Where an Underlying Policy other than the Primary Policy does not continue in full force and effect (other than by reason of erosion) such policy shall be deemed for all purposes of this Policy to have been maintained. The Primary Policy shall be deemed maintained if it is replaced by the operation of clause 4 hereof.
4. Step-Down of Cover
Subject always to the Limit of Liability:
| 4.1 | In the event of the reduction of the amount of indemnity available under any Underlying Policy by reason of partial erosion of the Underlying Limit (and in determining the existence and extent of such erosion the provisions of clause 1.3 shall apply) this Policy shall, subject to the Limit of Liability and to the other terms, conditions and limitations of this Policy, continue to be available to pay that proportion of Loss which exceeds the amount of indemnity remaining under the Underlying Policy(ies). |
| 4.2 | In the event of there being no indemnity available under the Underlying Policy(ies) by reason of the complete erosion of the Underlying Limit (and in determining the existence and extent of such erosion the provisions of clause 1.3 shall apply), the remaining limits available under this Policy shall, subject to the Limit of Liability and to the other terms, conditions and limitations of this Policy, continue for subsequent Loss as primary insurance and, in that event, any retention, excess or deductible and the remainder of any Sublimit specified in the Primary Policy shall apply under this Policy in respect of Loss. |
| 5. | Notification |
Any notification to the Primary Policy of a Claim or Circumstance which is required to be given in accordance with the terms and conditions of the Primary Policy shall also be given to the Insurers in writing.
6. Claims Participation
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| 6.1 | The Insurers shall have no liability to pay costs and expenses incurred by or on behalf of the Insured unless their consent to the incurring of such costs and expenses has first been obtained, such consent not to be unreasonably delayed or withheld. |
| 6.2 | No settlement of a claim brought by a third party shall be effected by or on behalf of the Insured for such a sum as will require payment by Insurers under this Policy unless the consent of the Insurers has first been obtained, such consent not to be unreasonably delayed or withheld. |
| 7. | Cancellation and Termination |
This Policy may be terminated or cancelled or shall become automatically terminated or cancelled in the same manner and on the same basis or bases as the Primary Policy. However, breach by the Insured of any obligation to pay premium in respect of the Primary Policy or in respect of any other of the Underlying Policy(ies) shall not entitle the Insurers to terminate or cancel this Policy.
8. Recoveries
Where, following payment of Loss by Insurers, recovery is effected, then such recovery, net of the expenses of its being effected, shall be distributed in the following order to the following parties:
| (i) | to the Insured or, to such extent, if any, as appropriate, to any insurer of a policy applying excess of this Policy, but only to the extent (if any) by which such loss or liability (as |
| applicable) exceeded the sum of the excess, deductible or retention of the Primary Policy, the Underlying Limit and the amount paid hereunder; and, | |
| (ii) | if any balance remains following the application of (i) above, to the Insurers to the extent of the amount(s) paid by them hereunder in respect of Loss; and, |
| (iii) | if any balance remains following the application of (i) and (ii) above, to those, if any, entitled pursuant to the operation of the Underlying Policies to such extent, if any, of the entitlements conferred thereunder; and |
For the avoidance of doubt, nothing in this Policy shall be construed as limiting or delaying the Insured's right to payment of any Loss hereunder until such time as it has effected any recovery.
9. Alteration
No material amendment to the terms of the Primary Policy shall apply in respect of this Policy unless and until agreed in writing by the Insurers.
10. Reporting Period
Where the terms of the Primary Policy provide:
| (i) | the Insured with a period of time immediately following the policy period of the Primary Policy during which notice may be given to the insurers of the Primary Policy of any Claims or Circumstances; and/or, |
| (ii) | the right to purchase such a period, |
then the Insured shall have the same period and/or right under this Policy in the same manner and on
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the same terms as those provided for in the Primary Policy except in relation to the premium payable (if any). The premium (if any) payable in respect of any such period available hereunder is set out in Item 9 of the Schedule.
11. Governing Law and Jurisdiction
This insurance shall be governed by and construed in accordance with the laws of the State of Massachusetts and any dispute arising hereunder shall be subject to the exclusive jurisdiction of the courts of United States of America as per NMA 1998 Service of Suit Clause U.S.A. as attached.
12. Complaints
The Insurers aim to provide a high standard at all times but if the Insured is not satisfied with the service provided it should contact the following:
In respect of Lloyd's underwriters: the person(s) identified in Item 10(a) of the Schedule.
In respect of Insurers other than Lloyd's underwriters, Willis Limited will provide on request details of the relevant persons.
In the event that the Insured remains dissatisfied it may be possible for the Insured's complaint to be referred to the Financial Ombudsman Service who may review the matter. The Financial Ombudsman Service address is:
Financial Ombudsman Service
South Quay Plaza, 183 Marsh Wall, London E14 9SR Telephone: 0845 0801800 Email: enquiries@financial-ombudsman.org.uk Website: www.financial-ombudsman.org.uk
ENDORSEMENT No 1
SPECIAL CANCELLATION CLAUSE
In the event that an Underwriter:
| a) | ceases underwriting; or |
| b) | is the subject of an order or resolution for winding up or formally proposes a scheme of arrangement; or |
| c) | has its authority to carry on insurance business withdrawn, |
| d) | has its financial strength rating reduced by A.M.Best's, Standard & Poor's or equivalent rating agency to less than A-. |
the Insured may terminate that Underwriter's participation on this risk forthwith by giving notice and the premium payable to that Underwriter shall be pro rata to the time on risk. In the event there are any notified, reserved or paid losses or circumstances, premium shall be deemed fully earned. Any return of premium shall also be subject to a written full release of liability from the Insured.
NMA2975 (amended)
30/05/03
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ENDORSEMENT No 2
U.S. TERRORISM RISK INSURANCE ACT OF 2002 AS AMENDED NEW & RENEWAL BUSINESS ENDORSEMENT
This Endorsement is issued in accordance with the terms and conditions of the "U.S. Terrorism Risk Insurance Act of 2002" as amended, as summarized in the disclosure notice.
In consideration of an additional premium of USD 1,572 paid, it is hereby noted and agreed with effect from inception that the Terrorism exclusion to which this Insurance is subject, shall not apply to any “insured loss” directly resulting from any "act of terrorism" as defined in the "U.S. Terrorism Risk
Insurance Act of 2002", as amended ("TRIA").
The coverage afforded by this Endorsement is only in respect of any “insured loss” of the type insured by this Insurance directly resulting from an "act of terrorism" as defined in TRIA. The coverage provided by this Endorsement shall expire at 12:00 midnight December 31, 2020, the date on which the TRIA Program is scheduled to terminate, or the expiry date of the policy whichever occurs first, and shall not cover any losses or events which arise after the earlier of these dates. The Terrorism exclusion, to which this Insurance is subject, applies in full force and effect to any other losses and any act or events that are not included in said definition of "act of terrorism".
This Endorsement only affects the Terrorism exclusion to which this Insurance is subject. All other terms, conditions, insured coverage and exclusions of this Insurance including applicable limits and deductibles remain unchanged and apply in full force and effect to the coverage provided by this Insurance.
Furthermore the Underwriter(s) will not be liable for any amounts for which they are not responsible under the terms of TRIA (including subsequent action of Congress pursuant to the Act) due to the application of any clause which results in a cap on the Underwriter’s liability for payment for terrorism losses.
LMA5218
12 January 2015
Form approved by Lloyd's Market Association
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ENDORSEMENT No 3
WAR AND TERRORISM EXCLUSION ENDORSEMENT
Notwithstanding any provision to the contrary within this insurance or any endorsement thereto it is agreed that this insurance excludes loss, damage, cost or expense of whatsoever nature directly or indirectly caused by, resulting from or in connection with any of the following regardless of any other cause or event contributing concurrently or in any other sequence to the loss;
| (1) | war, invasion, acts of foreign enemies, hostilities or warlike operations (whether war be declared or not), civil war, rebellion, revolution, insurrection, civil commotion assuming the proportions of or amounting to an uprising, military or usurped power; or |
| (2) | any act of terrorism. |
| For the purpose of this endorsement an act of terrorism means an act, including but not limited to the use of force or violence and/or the threat thereof, of any person or group(s) of persons, whether acting alone or on behalf of or in connection with any organisation(s) or government(s), committed for political, religious, ideological or similar purposes including the intention to influence any government and/or to put the public, or any section of the public, in fear. |
This endorsement also excludes loss, damage, cost or expense of whatsoever nature directly or indirectly caused by, resulting from or in connection with any action taken in controlling, preventing, suppressing or in any way relating to (1) and/or (2) above.
In the event any portion of this endorsement is found to be invalid or unenforceable, the remainder shall remain in full force and effect.
NMA2918 (amended)
08/10/2001
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ENDORSEMENT No 4
PREMIUM PAYMENT CLAUSE
Notwithstanding any provision to the contrary within this contract or any endorsement hereto, in respect of non payment of premium only the following clause will apply.
The (Re)Insured undertakes that premium will be paid in full to (Re)Insurers by 30 August 2019.
If the premium due under this contract has not been so paid to (Re)Insurers by 30 August 2019 (Re)Insurers shall have the right to cancel this contract by notifying the (Re)Insured via the broker in writing. In the event of cancellation, premium is due to (Re)Insurers on a pro rata basis for the period that (Re)Insurers are on risk but the full contract premium shall be payable to (Re)Insurers in the event of a loss or occurrence prior to the date of termination which gives rise to a valid claim under this contract.
It is agreed that (Re)Insurers shall give not less than 15 days prior notice of cancellation to the (Re)Insured via the broker. If premium due is paid in full to (Re)Insurers before the notice period expires, notice of cancellation shall automatically be revoked. If not, the contract shall automatically terminate at the end of the notice period.
If any provision of this clause is found by any court or administrative body of competent jurisdiction to be invalid or unenforceable, such invalidity or unenforceability will not affect the other provisions of this clause which will remain in full force and effect.
30/09/08
LSW3001
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ENDORSEMENT No 5
NUCLEAR INCIDENT EXCLUSION CLAUSE-LIABILITY-DIRECT (BROAD)
For attachment to insurances of the following classifications in the U.S.A., its Territories and Possessions, Puerto Rico and the Canal Zone:-Owners, Landlords and Tenants Liability, Contractual Liability, Elevator Liability, Owners or Contractors (including railroad) Protective Liability, Manufacturers and Contractors Liability, Product Liability, Professional and Malpractice Liability, Storekeepers Liability, Garage Liability, Automobile Liability (including Massachusetts Motor Vehicle or Garage Liability), not being insurances of the classifications to which the Nuclear Incident Exclusion Clause-Liability-Direct (Limited) applies.
This policy* does not apply:-
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| (c) | the injury, sickness, disease, death or destruction arises out of the furnishing by an insured of services, materials, parts or equipment in connection with the planning, construction, maintenance, operation or use of any nuclear facility, but if such facility is located within the United States of America, its territories or possessions or Canada, this exclusion (c) applies only to injury to or destruction of property at such nuclear facility. | |
| IV. | As used in this endorsement: | |
| “hazardous | properties” include radioactive, toxic or explosive properties; “nuclear | |
| material” | means source material, special nuclear material or byproduct material; “source | |
| material”, | “special nuclear material”, and "byproduct material" have the meanings given | |
| them | in the Atomic Energy Act 1954 or in any law amendatory thereof; “spent fuel” means | |
| any | fuel element or fuel component, solid or liquid, which has been used or exposed to | |
| radiation | in a nuclear reactor; “waste” means any waste material (1) containing byproduct | |
| material | and (2) resulting from the operation by any person or organization of any nuclear | |
| facility | included within the definition of nuclear facility under paragraph (a) or (b) thereof; | |
| “nuclear | facility” means | |
| (a) | any nuclear reactor, | |
| (b) | any equipment or device designed or used for (1) separating the isotopes of uranium or plutonium, (2) processing or utilizing spent fuel, or (3) handling, processing or packaging waste, | |
| (c) | any equipment or device used for the processing, fabricating or alloying of special nuclear material if at any time the total amount of such material in the custody of the insured at the premises where such equipment or device is located consists of or contains more than 25 grams of plutonium or uranium 233 or any combination thereof, or more than 250 grams of uranium 235, | |
| (d) | any structure, basin, excavation, premises or place prepared or used for the storage or disposal of waste, and includes the site on which any of the foregoing is located, all operations conducted on such site and all premises used for such operations; “nuclear reactor” means any apparatus designed or used to sustain nuclear fission in a self-supporting chain reaction or to contain a critical mass of fissionable material. With respect to injury to or destruction of property, the word “injury” or “destruction” includes all forms of radioactive contamination of property. | |
It is understood and agreed that, except as specifically provided in the foregoing to the contrary, this clause is subject to the terms, exclusions, conditions and limitations of the Policy to which it is attached.
*NOTE:- As respects policies which afford liability coverages and other forms of coverage in addition, the words underlined should be amended to designate the liability coverage to which this clause is to apply.
17/3/60
N.M.A. 1256
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ENDORSEMENT No 6
U.S.A.
RADIOACTIVE CONTAMINATION EXCLUSION CLAUSE
-LIABILITY-DIRECT
(Approved by Lloyd's Underwriters' Non-Marine Association)
For attachment (in addition to the appropriate Nuclear Incident Exclusion Clause - Liability -Direct) to liability insurances affording worldwide coverage.
In relation to liability arising outside the U.S.A., its Territories or Possessions, Puerto Rico or the Canal Zone, this Policy does not cover any liability of whatsoever nature directly or indirectly caused by or contributed to by or arising from ionising radiations or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel.
13/2/64
N.M.A. 1477
All other terms, conditions and limitations of this Policy shall remain unchanged.
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ENDORSEMENT No 7
SERVICE OF SUIT CLAUSE (U.S.A.)
It is agreed that in the event of the failure of the Underwriters hereon to pay any amount claimed to be due hereunder, the Underwriters hereon, at the request of the Assured (or Reinsured), will submit to the jurisdiction of a Court of competent jurisdiction within the United States. Nothing in this Clause constitutes or should be understood to constitute a waiver of Underwriters’ rights to commence an action in any Court of competent jurisdiction in the United States, to remove an action to a United States District Court, or to seek a transfer of a case to another Court as permitted by the laws of the United States or of any State in the United States. It is further agreed that service of process in such suit may be made upon Mendes & Mount LLP, 750 Seventh Avenue, New York New York 10019-6829, United States of America and that in any suit instituted against any one of them upon this contract, Underwriters will abide by the final decision of such Court or of any Appellate Court in the event of an appeal.
The above-named are authorized and directed to accept service of process on behalf of Underwriters in any such suit and/or upon the request of the Assured (or Reinsured) to give a written undertaking to the Assured (or Reinsured) that they will enter a general appearance upon Underwriters’ behalf in the event such a suit shall be instituted.
Further, pursuant to any statute of any state, territory or district of the United States which makes provision therefor, Underwriters hereon hereby designate the Superintendent, Commissioner or Director of Insurance or other officer specified for that purpose in the statute, or his successor or successors in office, as their true and lawful attorney upon whom may be served any lawful process in any action, suit or proceeding instituted by or on behalf of the Assured (or Reinsured) or any beneficiary hereunder arising out of this contract of insurance (or reinsurance), and hereby designate the above-named as the person to whom the said officer is authorized to mail such process or a true copy thereof.
N.M.A. 1998 (24/4/86)
All other terms, conditions and limitations of this Policy shall remain unchanged.
ENDORSEMENT No 8
SANCTIONS CLAUSE
No (re)insurer shall be deemed to provide cover and no (re)insurer shall be liable to pay any claim or provide any benefit hereunder to the extent that the provision of such cover, payment of such claim or provision of such benefit would expose the (re)insurer or its' parent, to any sanction, prohibition or restriction implemented pursuant to resolutions of the United Nations or the trade and economic sanctions, laws or regulations of the European Union, United Kingdom or United States of America.
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NMA LINES CLAUSE
This Insurance, being signed for USD 40,000,000 of USD 70,000,000 insures only that proportion of any loss, whether total or partial, including but not limited to that proportion of associated expenses, if any, to the extent and in the manner provided in this Insurance.
The percentages signed in the Table are percentages of 100% of the amount(s) of Insurance stated herein.
NMA 2419
Foreign Account Tax Compliance Act (“FATCA”)
Each (Re)Insurer hereby acknowledges the requirements of Sections 1471-1474 US Internal Revenue Code of 1986, as amended, and the Treasury regulations and other guidance issued from time to time thereunder (“FATCA”) and the obligation of each of them to provide to the Broker Willis Limited a valid Internal Revenue Service (“IRS”) Form W8-BEN-E, W-9 or other documentation meeting the requirements of the FATCA regulations to establish they are not subject to any withholding requirement pursuant to FATCA (the “Required Documentation”).
Furthermore:
| a) | If a (Re)Insurer becomes non-compliant with FATCA during the contract period or has not provided the Broker with the Required Documentation 14 days prior to any premium due date, the Withholding Agent (as defined in U.S. Treasury Regulation Section 1.1471-1(b)(147)) shall withhold 30% of the premium (to the extent all or a portion of that premium is subject to withholding pursuant to FATCA) due to that (Re)Insurer under this contract on that premium due date and shall promptly notify that (Re)Insurer via the Broker. |
| b) | The withholding of premium by virtue of (a) above shall not be, and shall not be treated by the (Re)Insurer as a breach of any premium payment condition, warranty or other clause whether or not entitling the (Re)Insurer to cancel, terminate or restrict this contract, refuse, restrict or delay payment of any claim or invoke any interest, penalty or other late payment provision. The (Re)Insurer shall be liable under this contract as if no such withholding had been made. |
| c) | The (Re)Insurer shall not recoup sums withheld under (a) above by deducting equivalent sums from any payments due to the (Re)Insured or by set off against any other sums owed by the (Re)Insurer and any general or contractual right of set-off enjoyed by the (Re)Insurer is hereby varied and qualified to that extent. |
| d) | Where premium is withheld in error, has not yet been paid to the IRS and the underwriter has been paid only the net premium following such withholding, the broker will cooperate with the (re)insurer to process the requisite refund. |
IUA 09-054
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ENDORSEMENT No 12
The following endorsement applies solely in respect of Pioneer participation only:
INSTITUTE RADIOACTIVE CONTAMINATION, CHEMICAL, BIOLOGICAL, BIO.CHEMICAL AND ELECTROMAGNETIC WEAPONS EXCLUSION CLAUSE
This clause shall be paramount and shall override anything contained in this insurance inconsistent therewith: 1. ln no case shall this insurance cover loss damage liability or expense directly or indirectly caused by or contributed to by or arising from: 1.1 ionizing radiations from or contamination by radioactivity from any nuclear fuel or from any nuclear waste or from the combustion of nuclear fuel; 1.2 the radioactive, toxic, explosive or other hazardous or contaminating properties of any nuclear installation, reactor or other nuclear assembly or nuclear component thereof; 1.3 any weapon or device employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter; 1.4 the radioactive, toxic, explosive or other hazardous or contaminating properties of any radioactive matter. The exclusion in this sub-clause does not extend to radioactive isotopes, other than nuclear fuel, when such isotopes are being prepared, carried, stored, or used for commercial, agricultural, medical, scientific or other similar peaceful purposes 1.5 any chemical, biological, bio-chemical, or electromagnetic weapon.
10/11/03 c1370
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2. INFORMATION
INFORMATION:
This section details the information that was provided to Insurers to support the assessment of the risk at the time of underwriting.
Where it is required to provide exposure information it is recommended that this should follow the ACORD exposure schedule standard which can be found at www.acord.org
|
Insured: Type of Insurance Policy Period: |
Fidelity Equity and High Income Funds. Excess Financial Institutions Bond Insurance 01 July 2019 to 01 July 2020 |
INFORMATION
(made available to and seen and agreed by Underwriters)
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| 3. SECURITY DETAILS | |
| (RE)INSURER’S | |
| LIABILITY: | (RE)INSURERS LIABILITY CLAUSE |
|
(Re)insurer’s liability several not joint The liability of a (re)insurer under this contract is several and not joint with other (re)insurers party to this contract. A (re)insurer is liable only for the proportion of liability it has underwritten. A (re)insurer is not jointly liable for the proportion of liability underwritten by any other (re)insurer. Nor is a (re)insurer otherwise responsible for any liability of any other (re)insurer that may underwrite this contract. The proportion of liability under this contract underwritten by a (re)insurer (or, in the case of a Lloyd’s syndicate, the total of the proportions underwritten by all the members of the syndicate taken together) is shown next to its stamp. This is subject always to the provision concerning “signing” below. In the case of a Lloyd’s syndicate, each member of the syndicate (rather than the syndicate itself) is a (re)insurer. Each member has underwritten a proportion of the total shown for the syndicate (that total itself being the total of the proportions underwritten by all the members of the syndicate taken together). The liability of each member of the syndicate is several and not joint with other members. A member is liable only for that member’s proportion. A member is not jointly liable for any other member’s proportion. Nor is any member otherwise responsible for any liability of any other (re)insurer that may underwrite this contract. The business address of each member is Lloyd’s, One Lime Street, London EC3M 7HA. The identity of each member of a Lloyd’s syndicate and their respective proportion may be obtained by writing to Market Services, Lloyd’s, at the above address. Proportion of liability Unless there is “signing” (see below), the proportion of liability under this contract underwritten by each (re)insurer (or, in the case of a Lloyd’s syndicate, the total of the proportions underwritten by all the members of the syndicate taken together) is shown next to its stamp and is referred to as its “written line”. Where this contract permits, written lines, or certain written lines, may be adjusted (“signed”). In that case a schedule is to be appended to this contract to show the definitive proportion of liability under this contract underwritten by each (re)insurer (or, in the case of a Lloyd’s syndicate, the total of the proportions underwritten by all the members of the syndicate taken together). |
|
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ORDER HEREON:
BASIS OF WRITTEN
LINES:
BASIS OF SIGNED
LINES:
SIGNING
PROVISIONS:
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A definitive proportion (or, in the case of a Lloyd’s syndicate, the total of the proportions underwritten by all the members of a
Lloyd’s syndicate taken together) is referred to as a “signed line”.
The signed lines shown in the schedule will prevail over the written lines unless a proven error in calculation has occurred.
Although reference is made at various points in this clause to “this contract” in the singular, where the circumstances so require this should be read as a reference to contracts in the plural.
21/6/07
LMA3333
USD 40,000,000 of USD 70,000,000
Percentage of order
NMA 2419 Lines Clause, as attached
Percentage of order
In the event that the written lines hereon exceed 100% of the order, any lines written “to stand” will be allocated in full and all other lines will be signed down in equal proportions so that the aggregate signed lines are equal to 100% of the order without further agreement of any of the (re)insurers.
However:
| a) | in the event that the placement of the order is not completed by the commencement date of the period of (re)insurance then all lines written by that date will be signed in full; |
| b) | the signed lines resulting from the application of the above provisions can be varied, before or after the commencement date of the period of (re)insurance, by the documented agreement of the (re)insured and all (re)insurers whose lines are to be varied. The variation to the contracts will take effect only when all such (re)insurers have agreed, with the resulting variation in signed lines commencing from the date set out in that agreement. |
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WRITTEN LINES
MODE OF EXECUTION CLAUSE
This contract and any changes to it may be executed by:
| (a) | electronic signature technology employing computer software and a digital signature or digitiser pen pad to capture a person’s handwritten signature in such a manner that the signature is unique to the person signing, is under the sole control of the person signing, is capable of verification to authenticate the signature and is linked to the document signed in such a manner that if the data is changed, such signature is invalidated; |
| (b) | a unique authorisation provided via a secure electronic trading platform |
| (c) | a timed and dated authorisation provided via an electronic message/system; |
| (d) | an exchange of facsimile/scanned copies showing the original written ink signature of paper documents; |
| (e) | an original written ink signature of paper documents (or a true representation of a signature, such as a rubber stamp).; |
The use of any one or a combination of these methods of execution shall constitute a legally binding and valid signing of this contract. This contract may be executed in one or more of the above counterparts, each of which, when duly executed, shall be deemed an original.
In a co-insurance placement following (re)insurers may, but are not obliged to, follow the premium charged by the lead (re)insurer.
(Re)insurers may not seek to guarantee for themselves terms as favourable as those which others subsequently achieve during the placement.
It is the responsibility of each (Re)insurer subscribing to this contract to ensure that they are appropriately licenced to underwrite this contract in the territories described herein and can also discharge their relevant Insurance Premium Tax obligations.
| UMR: | B080113017P19 |
| (Original) Insured: | Fidelity Equity and High Income Funds |
| Written % | Signed and Dated Stamp |
| Incorporating Underwriting Reference | |
Details of variation(s) to the contract applying to the above Insurer only:
| Premium: | for 100% for the policy period |
| Brokerage: | % |
| SMB: | % |
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CONTRACT ADMINISTRATION AND ADVISORY SECTIONS
(Applying to the contract but not forming part of the client’s contract documentation)
4. SUBSCRIPTION AGREEMENT
SLIP LEADER:
BUREAU LEADER:
BASIS OF AGREEMENT TO CONTRACT
CHANGES:
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For the purposes of SCAP the Slip Leader must be (a) an authorised person (as defined in Section 31 of the Financial Services and Markets Act 2000) with the permission to effect and carry out the contracts of insurance; or (b) a member of Lloyd’s.
Not applicable unless completed here.
Lloyd's Leader LIRMA Leader ILU Leader
(Where both company and Lloyd’s participate, both Bureau
Leaders should be included. For the purposes of SCAP, the Bureau Leader(s) must be identified).
(For claims falling within the scope of the Single Claims Agreement Party (SCAP) Arrangements, claims at or below the Threshold Amount to be agreed by the SLIP LEADER only according to the terms of the SCAP Arrangements and the Bureau Leaders are to adhere to the applicable claims agreement practices and act in accordance with CLAIMS AGREEMENT PARTIES (as defined in A or B below).
GUA (Version 2.0 February 2014) with Non-Marine Schedule -October 2001
| A. | In respect of each (re)insurer which at any time has the ability | |
| to | send and receive ACORD messages via the Exchange: | |
| i. | Any contract change will be submitted by Willis Limited for agreement via an 'ACORD message'; | |
| ii. | any contract change which requires notification will be notified by Willis Limited via an 'ACORD message'; | |
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| iii. | It is understood and agreed that whilst any contract change may be negotiated and agreed in any legally effective manner (and will be binding at that stage), such agreement of any contract change will be confirmed by each such (re)insurer via an appropriate 'ACORD message'. For the avoidance of any doubt, no further duty of disclosure arises in relation to any such confirmation. | |
| B. | In respect of each (re)insurer who does not have the ability to | |
| send | and receive ACORD messages via the Exchange: | |
| i. | It is understood and agreed that whilst any contract change may be negotiated and agreed in any legally effective manner (and will be binding at that stage), any such contract change will be submitted/notified by Willis Limited electronically via email or other electronic means; | |
| ii. | Such binding agreement of any contract change will be confirmed by each such (re)insurer via email or other electronic means. For the avoidance of any doubt, no further duty of disclosure arises in relation to any such confirmation. | |
Where there is a requirement for any wording to be agreed this is to be agreed by the Slip Leader only.
The Slip Leader is to determine whether amendments to the wording fall into part one, part two or part three of the GUA schedule.
The period of this contract may be extended for up to one calendar month at expiry, at terms to be agreed by the Slip Leader only.
The following clause is applicable to insurance risks which are eligible for TRIA.
TRIA NOTICE CLAUSE
Authority is hereby given to the Slip Leader to issue notice to Insured(s) as required by the U.S. Terrorism Risk Insurance Act of 2002 on behalf of all insurers hereon.
Where differing premium and/or broker remuneration and deductions terms apply to subscribing (re)insurers to this contract and the contract is subsequently subject to any form of additional/return premium, it is hereby agreed that the original premium and/or broker remuneration and deductions proportions
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OTHER AGREEMENT PARTIES FOR
CONTRACT CHANGES, FOR
PART 2 GUA
CHANGES ONLY:
OTHER AGREEMENT
PARTIES FOR CONTRACT CHANGES, FOR
THEIR PROPORTION
ONLY:
BASIS OF CLAIMS
AGREEMENT:
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shall be applied to such additional/return premium unless specifically stipulated to be otherwise in the endorsement.
Where no other agreement parties for contract changes are stated herein, the agreement party will be the Slip Leader only.
Where no other agreement parties for contract changes are stated herein, the agreement party will be the Slip Leader only.
As specified under the CLAIMS AGREEMENT PARTIES section of this Contract and to be managed in accordance with:
| i) | The SINGLE CLAIMS AGREEMENT PARTY ARRANGEMENT – LMA9150 [as below] for claims or circumstances assigned as Single Claims Agreement Party Claims (SCAP Claims) or, where it is not applicable, then the following shall apply as appropriate:- |
| ii) | The Lloyd’s Claims Scheme (combined) or as amended or any successor thereto. |
(N.B. The applicable Lloyd’s Claims Scheme/part will be determined by the rules and scope of the Schemes(s))
| iii) | IUA claims agreement practices. |
| iv) | The practices of any company(ies) electing to agree claims in respect of their own participation. |
The applicable arrangements (scheme, agreement or practices) will be determined by the rules and scope of said arrangements and should be referred to as appropriate.
Single Claims Agreement Party Arrangements
1 Single Claims Agreement Party
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1.1 Scope
All claims having, or circumstances assessed by the SLIP LEADER as having, a Claim Amount at or below GBP250,000 or currency equivalent (the Threshold Amount) will be designated a Single Claims Agreement Party Claim (SCAP Claim) and will be managed within the terms of these Single Claims Agreement Party Arrangements (these Arrangements). For the purposes of these Arrangements the SLIP LEADER must be: (a) an authorised person (as defined in Section 31 of the Financial Services and Markets Act 2000) with permission to effect and/or carry out contracts of insurance; or (b) a Member of Lloyd’s.
1.2 Exceptions
Where:
| 1.2.1 | the Claim Amount is more than, or, in the assessment of the SLIP LEADER, is likely to be more than, the Threshold Amount; and/or |
| 1.2.2 | after making further enquiries, there remains insufficient information to form a view on the likely quantum of any circumstance or claim and in the |
| SLIP LEADER’S assessment, there is a material risk that the quantum will ultimately exceed the | |
| Threshold Amount; and/or | |
| 1.2.3 | issues arise of fraud or avoidance (either under the Insurance Act 2015 or otherwise) or there are allegations against (re)insurers of regulatory breach which may result in regulatory action being taken against (re)insurers, or actionable allegations of improper claims handling have been made in respect of the claim at issue, or, in the assessment of the SLIP |
| LEADER, such issues are likely to arise in connection with a claim; and/or | |
| 1.2.4 | in the assessment of the SLIP LEADER a claim is, or is likely to become, controversial or complex, or is likely to become subject to Dispute Resolution Proceedings, |
such claims or circumstances shall be managed in accordance with the provisions of the applicable BASIS OF CLAIMS AGREEMENT.
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| 2 | Slip Leader Responsibilities |
| 2.1 | Receipt of a Claim |
Upon receiving a notification of a claim or circumstance, the SLIP LEADER shall, as soon as practicable, reasonably assess and decide, based on all the relevant circumstances (including but not limited to the Claims Information), whether such claim or circumstance is a SCAP Claim and notify the Broker accordingly with instructions for it to advise this decision to all claims agreement parties defined in B of the CLAIMS AGREEMENT PARTIES section.
| 2.2 | Role of the Slip Leader |
| A | SCAP Claim shall be Determined by the SLIP LEADER on behalf |
of itself and all (re)insurers which subscribe: (1) to this Contract on the same contractual terms (other than premium and brokerage); and (2) to these Arrangements (Subscribing (Re)Insurers).
When Determining a SCAP Claim, including where the SLIP
LEADER may have delegated the Determination of a SCAP Claim, the SLIP LEADER must always:
| 2.2.1 | act in good faith and exercise the reasonable care of a competent (re)insurer; and |
| 2.2.2 | act in the best interest of all Subscribing (Re)Insurers on whose behalf it acts; and |
| 2.2.3 | comply with all laws, sanctions regimes, regulations and related guidance (including, but not limited to, those issued by Lloyd’s, the Financial Conduct |
| Authority and/or the Prudential Regulation Authority) as may be applicable to the Determination of a SCAP Claim and to which the SLIP LEADER is subject, including, but not limited to conduct of business rules requiring (re)insurers to treat customers fairly (if applicable in that jurisdiction); and | |
| 2.2.4 | notify either directly or via the Broker, all |
| Subscribing (Re)Insurers of any Dispute Resolution Proceedings commenced against them. |
For the avoidance of doubt, the SLIP LEADER shall have no obligations or liability to any (re)insurer, other than a Subscribing (Re)Insurer, arising out of or in any way connected with the
Determination of a SCAP Claim.
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2.3 Reassigning Claims
Where during the life of a SCAP Claim any of the provisions of clause 1.2 apply, the SLIP LEADER shall:
| 2.3.1 | reassign the SCAP Claim to the claims agreement parties defined in B of the CLAIMS AGREEMENT |
| PARTIES section; and | |
| 2.3.2 | notify the Broker accordingly with instructions for it to advise all applicable claims agreement parties defined in B of the CLAIMS AGREEMENT |
| PARTIES section, following which the provisions of the applicable BASIS OF CLAIMS AGREEMENT shall apply to the claim. |
The SLIP LEADER may, at any time, reassign a SCAP Claim outside of these Arrangements if having due regard to the available Claims Information, all relevant circumstances and its ability to act in accordance with clauses 2.2.1 to 2.2.3 inclusive, it considers that this assignment would be appropriate, following which the provisions of the applicable BASIS OF CLAIMS AGREEMENT shall apply to the claim.
The Broker may also, at any time, reassign a SCAP Claim outside of these Arrangements and to the provisions of the applicable BASIS OF CLAIMS AGREEMENT by advising all claims agreement parties defined in B of the CLAIMS AGREEMENT PARTIES section.
Where a SCAP Claim has been reassigned outside of these Arrangements, it may not, without the consent of all claims agreement parties defined in B of the CLAIMS AGREEMENT PARTIES section, be reassigned as a SCAP Claim.
Notwithstanding clauses 1.2.1 and 1.2.2 but without prejudice to any other right or requirement to (re)assign a SCAP Claim outside of these Arrangements, where the exchange rate between Sterling and the currency in which the SCAP Claim has been made fluctuates after the conversion date stated in A of the CLAIMS AGREEMENT PARTIES section such that the Sterling value of the claim exceeds the Threshold Amount, the claim shall not cease to be a SCAP Claim by reason of the currency fluctuation alone.
2.4 Delegation of Determination
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The SLIP LEADER may delegate its Determination of a SCAP Claim to another entity.
Despite its right to delegate the Determination of a SCAP Claim pursuant to these Arrangements the SLIP LEADER shall remain responsible for all acts and omissions of the delegate and the acts and omissions of those employed or engaged by the delegate as if they were its own.
2.5 Processing Claims
The SLIP LEADER shall ensure that all supporting information has been properly documented prior to payment of the claim and that such records are kept for a period of no less than seven years after closure, subject always to the requirements of applicable laws (including but not limited to those applicable to the processing of personal data and privacy).
3 Broker Responsibilities
Notwithstanding the application of these Arrangements, the Broker shall advise all claims agreement parties defined in B of the CLAIMS AGREEMENT PARTIES section of any or all of the following matters or events, where known, as soon as practicable:
| 3.1 | any new claim or circumstance assigned as a SCAP Claim; |
| 3.2 | any recommended reserve or reserves for a SCAP Claim; |
| 3.3 | any revision to the recommended reserve or reserves for a |
| SCAP Claim; | |
| 3.4 | any change in the assignment of a SCAP Claim; |
| 3.5 | the receipt of notice of the commencement of any Dispute Resolution Proceedings relating to a SCAP Claim; |
| 3.6 | the final Determination of a SCAP Claim, including where a SCAP Claim is denied; |
| 3.7 | any receipt of a complaint against (re)insurers; |
| 3.8 | any termination of the SLIP LEADER’s authority to |
| Determine claims under clauses 4.1 to 4.3 inclusive; and/or | |
| 3.9 | where so requested by the SLIP LEADER, the identity and participation of all Subscribing (Re)Insurers. |
| A | Subscribing (Re)Insurer may request the SLIP LEADER and/or |
Broker to provide such further information as it may reasonably require and the SLIP LEADER and Broker shall co-operate fully with any such request.
4 Termination of the SLIP LEADER’s Authority
In the event that the SLIP LEADER:
| 4.1 | becomes the subject of voluntary or involuntary rehabilitation or liquidation, action in bankruptcy or similar or in any way |
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| otherwise acknowledges its insolvency or is unable to pay its debts or losses; or | |
| 4.2 | has its right to transact the main class of business covered by the slip withdrawn, suspended, removed or made conditional or impaired in any way by any regulatory authority; or |
| 4.3 | ceases to be either: (a) an authorised person (as defined in Section 31 of the Financial Services and Markets Act 2000) with permission to effect and/or carry out contracts of insurance; or (b) a member of Lloyd’s, |
the authority of that SLIP LEADER to Determine all SCAP Claims shall automatically terminate from the date of that event, following which the provisions of the applicable BASIS OF CLAIMS AGREEMENT shall apply to the claim.
| 5 | Professional Advisers |
| 5.1 | The SLIP LEADER has the sole authority to appoint and instruct an independent, external, professional adviser (which may include, but is not limited to, a lawyer, loss adjuster, surveyor, actuary or accountant) on behalf of Subscribing (Re)Insurers where, in its sole discretion, it considers the professional adviser necessary for the Determination of a claim. The SLIP LEADER shall supervise the professional adviser throughout the period of their appointment. |
| 5.2 | A professional adviser appointed in connection with a SCAP Claim pursuant to clause 5.1 above may, at the SLIP |
| LEADER’s discretion, be instructed to send all reports and correspondence directly to the SLIP LEADER. The professional adviser’s fees shall be agreed by the SLIP | |
| LEADER. The fees of the professional adviser shall be shared between the Subscribing (Re)Insurers in accordance with their respective shares of the SCAP Claim. | |
| 6 | Claims Concerns |
If a Subscribing (Re)Insurer has a concern regarding the handling of a SCAP Claim by the SLIP LEADER it shall notify the SLIP
LEADER of its concern. The SLIP LEADER and the Subscribing (Re)Insurer which has raised the concern shall promptly confer and use their best endeavours to resolve the concern. If any disagreement remains after a period of 28 days from the date on which the concern was notified to the SLIP LEADER, the authority of the SLIP
LEADER to Determine the SCAP Claim to which the concern relates shall terminate, following which the provisions of the
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applicable BASIS OF CLAIMS AGREEMENT shall apply to the claim.
7 Intra-(Re)Insurer Dispute Resolution Protocols
Before a Subscribing (Re)Insurer (Claimant) can bring a legal claim against the SLIP LEADER in relation to the Determination of a SCAP Claim or for an alleged breach of its obligations under these Arrangements, it must first attempt to resolve the dispute (Dispute) as follows:
| 7.1 | The Claimant shall notify the SLIP LEADER that it is commencing the Dispute Resolution Protocols prescribed in this clause 7. |
| 7.2 | The Dispute shall first be referred to representatives of the SLIP LEADER and of the Claimant who shall meet in a good faith effort to resolve the Dispute. If a resolution is not achieved within 21 days from the date the Dispute was referred to these individuals, the matter shall be escalated to a member of senior management responsible for claims, for each of the Claimant and SLIP LEADER, who shall attempt to resolve the Dispute. |
| 7.3 | If the Dispute has not been resolved within 28 days from the date upon which it is referred to senior management, then the Claimant and SLIP LEADER shall enter into a mediation agreement in the form prescribed by the LMA and IUA. If the resulting mediation fails to resolve the Dispute, then the Dispute shall be settled by arbitration in accordance with clause 7.4, provided always that the decision to commence an arbitration must be taken by the senior management of the Claimant in question. |
| 7.4 | All arbitrations arising out of or in connection with a Dispute shall be referred to arbitration under ARIAS Fast Track Arbitration Rules. The seat of arbitration shall be London. |
| 8 | Limitation of Liability |
| 8.1 | The total liability, whether in contract, in tort (including but not limited to negligence), breach of fiduciary duty, breach of statutory duty or otherwise, of a SLIP LEADER to all |
| Subscribing | (Re)Insurers on whose behalf it has acted, or is |
| acting, | under these Arrangements shall not exceed GBP |
| 500,000 | in respect of any one SCAP Claim (Liability Cap). |
| 8.2 | If the aggregate liability of a SLIP LEADER in respect of any |
| one | SCAP Claim would exceed the Liability Cap, the |
| Subscribing | (Re)Insurers shall each be entitled to be paid |
| only | a share of the Liability Cap calculated in proportion to |
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| the share of the (re)insurance underwritten by each Subscribing (Re)Insurer (excluding for the purposes of this clause any share underwritten by the SLIP LEADER). | |
| 8.3 | A SLIP LEADER shall not be liable for loss of profits, loss of business, loss of use (in each case whether direct or indirect) or any other indirect, special, or consequential damages alleged to have been suffered by a Subscribing (Re)Insurer arising out of its breach of the terms of these Arrangements. |
| 8.4 | Notwithstanding clause 8.3 but subject always to clauses 8.1, 8.2 and 8.5, nothing in this clause 8 is intended to exclude the |
| SLIP LEADER’S liability to the Subscribing (Re)Insurers in respect of damages payable by the Subscribing (Re)Insurers to the (re)insured, in addition to the Claim Amount, arising from the mishandling of a SCAP Claim by the SLIP LEADER, its agents or employees, where such mishandling gives rise to an actionable claim for damages against Subscribing (Re)Insurers. | |
| 8.5 | Nothing in these Arrangements shall exclude, restrict or limit with respect to the handling of a SCAP Claim a SLIP |
| LEADER’s liability for: (1) fraud or fraudulent misrepresentation; (2) death or personal injury caused by its negligence or the negligence of its employees or agents; or (3) any matter in respect of which it would be unlawful to exclude or restrict liability. | |
| 9 | Choice of Law and Jurisdiction |
Notwithstanding any other choice of law, express or implied in the contract of (re)insurance, the provisions of these Arrangements shall be construed and governed in accordance with the Laws of England and Wales and the Subscribing (Re)Insurers submit to the exclusive jurisdiction of the Courts of England and Wales.
| 10 | Exclusions | |
| 10.1 | The following types of business (and applicable risk codes for | |
| Lloyd’s) | are excluded from these Arrangements: | |
| 10.1.1 | Binding Authorities; | |
| 10.1.2 | Proportional & Quota Share Treaties. | |
| 10.2 | The following forms of settlement are excluded from these | |
| Arrangements: | ||
| 10.2.1 | ex gratia payments of any kind; | |
| 10.2.2 | commutation agreements. | |
| Definitions | ||
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CLAIMS AGREEMENT
PARTIES:
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In these Arrangements, unless the context otherwise requires, the following words shall have the following meanings:
Claim Amount means:
Claims Information means the information contained within a notification or provided by the (re)insured or its agent in relation to a SCAP Claim. It also includes all information obtained by the SLIP LEADER or provided by any Professional Adviser employed by (re)insurers.
Contract means, for the purposes of these Arrangements, (re)insurance evidenced by (re)insurers subscribing to a single Market Reform Contract and where all (re)insurers participate on the same contractual terms and conditions (other than premium and brokerage).
Determination/Determine means all claims handling activities necessary (including the appointment and instruction of any
Professional Advisers) in order to: (i) accept or deny a SCAP Claim, in whole or in part; (ii) agree any amount payable and (iii) resolve finally any open matter in respect of the SCAP Claim by agreement or, negotiation.
Dispute Resolution Proceedings means any litigation, arbitration, mediation, regulatory hearing (other than before an ombudsman) or other contested proceeding commenced by or against Subscribing (Re)Insurers in any jurisdiction.
LMA9150
01 February 2018
| A. | Claims falling within the scope of the (LMA9150) to be agreed by Slip Leader only on behalf of all (re)insurers subscribing (1) to this Contract on the same contractual terms (other than premium and brokerage) and (2) to these Arrangements. |
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| For the purposes of calculating the Threshold Amount, the sterling rate on the date that a financial value of the claim is first established by the Slip Leader shall be used and the rate of exchange shall be the Bank of England spot rate for the purchase of sterling at the time of the deemed conversion. | |
| B. | For all other claims: |
| i) | For Lloyd's syndicates: |
| The leading Lloyd's syndicate and, where required by the applicable Lloyd's Claims Scheme, the second Lloyd's syndicate. | |
| The second Lloyd's Syndicate is …………………………. | |
| ii) | Those companies acting in accordance with the IUA claims agreement practices, excepting those that may have opted out via iv) below. |
| iii) | Those companies that have specifically elected to agree claims in respect of their own participation. |
| iv) | All other subscribing insurers that are not party to the |
| Lloyd’s/IUA claims agreement practices, each in respect of their own participation. | |
| v) | Notwithstanding anything contained in the above to the contrary, any ex gratia payments to be agreed by each (re)insurer for their own participation. |
|
CLAIMS ADMINISTRATION: |
Willis Limited and (re)insurers agree that any claims hereunder (including any claims related costs/fees) will be notified and administered via the Electronic Claims File (ECF) with any payment(s) processed via CLASS, unless both parties agree to do otherwise. Where claims or circumstances are not administered via ECF, notification, administration and payment(s) will be electronic. |
Where a Lloyd’s syndicate or IUA company is not an agreement party to the claim or circumstance (per CLAIMS AGREEMENT PARTIES
A. above) they agree to accept correct ECF sequences for administrative purposes to ensure information is circulated to all subscribing parties.
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RULES AND EXTENT OF ANY OTHER
DELEGATED CLAIMS
AUTHORITY:
EXPERT(S) FEES
COLLECTION:
SETTLEMENT
DUE DATE:
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Willis Limited are authorised to obtain translations of claims documents on behalf of insurers, with Insurers’ associated costs being payable by Insurers as provided for under Expert(s) Fees Collection heading.
For Non Bureaux Insurers only
Claims settlement to be remitted to Willis Limited (unless otherwise specified within the contract) within 7 working days after agreement of claim by Slip Leader and submission of collection to market(s).
None
Where the Claims Agreement Parties hereunder have delegated authority to a third party, then all insurers will follow the settlements of the appointed third party.
In respect of Expert(s) Fees payable by (re)insurers for services performed on their behalf, an appointed Service Provider to provide all collection and disbursement services on behalf of (re)insurers in conjunction with, whenever appropriate, Xchanging in respect of any bureau markets. In respect of Expert(s) Fees payable by (re)insurers for services performed on behalf of the (re)insured Willis Limited to collect fees.
30 August 2019
In the absence of a Settlement Due Date, a Premium Payment Warranty or a Premium Payment Clause which automatically cancels the contract if premium payment is not paid by a specified date, the Settlement Due Date will be calculated by granting 60 days (or 90 days in respect of reinsurance) from whichever is the later of either:
| 1) | the inception date of the risk or |
| 2) | the date on which the final Insurer agreement is obtained |
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INSTALMENT PREMIUM
PERIOD OF CREDIT:
ADJUSTMENT PREMIUM
PERIOD OF CREDIT:
BUREAUX
ARRANGEMENTS:
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Not applicable unless detailed here.
Not applicable unless detailed here.
Premium Processing Clause
Where the premium is to be paid through Xchanging Ins-sure Services (XIS), payment to Insurers will be deemed to occur on the day that a delinked premium is released for settlement by the Appointed Broker or in the case of non-delinked premiums, on the day that the error-free Premium Advice Note (PAN) is submitted to XIS.
Where premiums are to be paid by instalments under the Deferred Account Scheme, and the Appointed Broker does not receive the premium in time to comply with the agreed settlement date for the second or subsequent instalment, the Appointed Broker, if electing to suspend the automatic debiting of the relevant deferred instalment, shall advise the Slip Leader in writing and instruct XIS accordingly.
XIS shall then notify Insurers. Payment to any entity within the same group of companies as the Appointed Broker will be deemed to be payment to the Appointed Broker.
Nothing in this clause shall be construed to override the terms of any Premium Payment Warranty or Clause or any Termination or Cancellation provision contained in this contract. Furthermore, any amendment to the Settlement Due Date of a premium instalment as a result of the operation of this Premium Processing Clause shall not amend the date that such instalment is deemed to be due for the purposes of such Premium Payment Warranty or Clause or Termination or Cancellation provision unless Insurers expressly agree otherwise.
Appointed Broker : Willis Limited
LSW3003
14/12/09
Xchanging Ins-sure Services (XIS) are authorised to sign premium, de-linked or otherwise, from individual insureds, cedants, territories, insurers or class of business sections separately as and when received from Willis Limited.
In the event that any applicable premium payment warranty, clause or condition has a different due date to the settlement due date, XIS are hereby authorised to amend the settlement due date to match the
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premium payment warranty, clause or condition due date. This agreement shall be binding on all bureau insurers.
Insurers hereby agree that any premium payable in instalments under this contract will be processed as delinked additional premium entries other than when submitted under the Deferred Account Scheme.
Where any Settlement Due Date (SDD), Premium Payment Warranty (PPW) or Premium Payment Condition (PPC) due date falls on a weekend or public holiday, presentation to XIS or insurers hereon or release for settlement of a delinked premium as applicable on the next working day will be deemed to be in compliance with such SDD, PPW or PPC.
Where Premium Transfers have been completed any additional/return premiums due thereafter will be paid/deducted from the last Year of Account unless advised differently by (re)insurers.
Agreed to accept currency rate of exchange adjustments as presented to XIS bearing evidence of Insured payment / settlement.
For signing purposes XIS agree to accept netted down premiums (being both gross and net) as presented by Willis Limited.
All premium related transactions shall be settled in the same currency as indicated in this contract and all claims related transactions, including fees and expenses shall be paid in any appropriate currency as requested by the Insured, expert or adjuster, providing:
Where the currency(ies) is not a currency nominated by Lloyd’s, IUA or XIS as a settlement currency, or where one or more XIS Underwriter does not transact business in a nominated XIS settlement currency or where all or part of the Lloyd's premium is to be settled in US Dollars (USD) for US or Canadian Trust Fund purposes, then all transactions will be converted into Pounds Sterling (GBP), US Dollars (USD) or Euro (EUR), as specified by Willis Limited, at the applicable rate of exchange which shall be determined by:
| a) | the date of receipt by Willis Limited for premiums |
| b) | the date of payment to the client for claims and return premiums or as agreed by the Slip Leader. |
XIS are authorised to:
Insurers agree to allow delinked signings to be removed on Broker instruction only, subject to evidence that insurers have been advised by the Broker that it has been unable to collect the premium.
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| a) | the date of receipt by Willis Limited for premiums |
| b) | the date of payment to the client for claims and return premiums or as agreed by the Slip Leader. |
Settlements in respect of any Canadian interest will be converted, where necessary, into US Dollars (USD) or Canadian Dollars (CAD) for payment to insurers at the applicable rate of exchange determined by the date of premium receipt by Willis Limited.
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ALLOCATION OF
PREMIUM TO
| CODING: | BB (Crime) | 99 | % |
| 7 | T | 1 | % | |
| REGULATORY CLIENT | ||||
| CLASSIFICATION: | Large Risk | |||
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6. BROKER REMUNERATION AND DEDUCTIONS
| FEE PAYABLE BY | |
| CLIENT? | Yes |
| TOTAL BROKERAGE: | Nil |
| OTHER DEDUCTIONS | |
| FROM PREMIUM: | None. |
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Policy Number: (UMR) B080113017
SECURITY DETAILS
REFERENCES
UMR (Unique Market Reference): B080113017
Date contract printed to PDF: 16:59 28 June 2019
Line written on the condition Chubb Global Markets Syn 2488 is a Contract Agreement Party and Claims Agreement Party
| Barbican Managing Agency Limited | ||||||
| Gavin Stanley | ||||||
| Written Line | 8.125 | % | Signed Line | 8.125 | % | |
| Agreed on | 12:31 | 28 June 2019 | ||||
| For and on behalf of: | % of Written Line | Written Line | Signed Line | |||
| Barbican FinPro Consortia 9562 | 100.00 | % | 8.125 | % | 8.125 | % |
| Bound | ||||||
| Lloyd's Stamp: | 9562 | |||||
| Reference: | 026843011900 | |||||
| Description: |
Market Submission - Security Details
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28/06/2019 1
Market Submission - Security Details
Page 2 of 5
28/06/2019 1
Premiums and Claims to be settled directly with Pioneer Underwriters Limited with notifications to accounts@pioneeruw.com and UKFIclaims@pioneeruw.com
| QBE European Company Operations | ||||||
| Dominic Checketts | ||||||
| Written Line | 13.125 | % | Signed Line | 13.125 | % | |
| Agreed on | 14:28 | 28 June 2019 | ||||
| For and on behalf of: | Written Line | Signed Line | ||||
| Lloyd's Underwriter Syndicate No. 1886, London, | 13.125 | % | 13.125 | % | ||
| England | ||||||
| Bound | ||||||
| Lloyd's Stamp: | 1886 | |||||
| LORS Code: | L1886 | |||||
| Reference: | 19BA210563KA | |||||
| Description: | pp. MF / BB | |||||
| Reference: | 19BA210563KB | |||||
| Description: | pp. MF / 7T |
| Subjectivities |
| Subject to satisfactory receipt, review and acceptance of the agreed primary policy wording. Insurers reserve the right to |
| amend or withdraw all terms and conditions upon receipt or if not received prior to deadline. |
Deadline 11 July 2019 (GMT) Status Open
Market Submission - Security Details
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28/06/2019 1
Subjectivities
Subjectivity 14 day extension, receipt, review and acceptance of the underlying, agreed primary policy wording.
Deadline
15 July 2019 (GMT)
Status
Open
Line Conditions
Talbot Syndicate 1183 is an agreement party for Contract Changes, for its proportion only.
Market Submission - Security Details
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Lloyd's Underwriter Syndicate No. 2488 CGM, London, England.
Bureau Leader and Lloyd’s Leader
Daisy Laskey
Market Submission - Security Details
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| Willis Limited | ||
| 51 Lime Street London | ||
| Telephone: +44 (0)2031246000 | Fax: +44 (0)2031248223 | Website: www.willistowerswatson.com |
CONTRACT
OF
INSURANCE
|
Unique Market Reference (UMR): Insured: |
B080113011P19 Fidelity Fixed Income and Asset Allocation Funds and as or more fully defined in the Contract Wording. |
|
Principal Address: |
FMR LLC 155 Seaport Blvd., ZW9C. Boston, Massachusetts 02210, United States of America Mailing Address: C/O FMR LLC 200 Seaport Blvd., ZW9C. Boston, Massachusetts 02210, United States of America |
|
Type: |
Insurance of: Excess Financial Institutions Bond Insurance as further defined in the underlying primary contract issued by the National Union Fire Insurance Company of Pittsburgh, PA and as more fully defined in the Contract Wording. |
|
Period: |
From: 1 July 2019 To: 1 July 2020 Both Days at 00:01/local standard time at the above address of the Insured |
Willis Limited, Lloyd's brokers. A Willis Towers Watson Company. Willis Limited is authorised and regulated by the Financial Conduct Authority. Registered office 51 Lime Street, London EC3M 7DQ. Registered number 181116 England and Wales. Registered VAT number GB 334 1289 70
RETENTION:
TERRITORIAL LIMITS:
CONDITIONS:
CHOICE OF LAW AND
JURISDICTION:
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USD 150,000,000 any one loss/claim and in the aggregate for the period the details of which are held on file in the offices of Willis Limited
Primary contract Retentions detailed as per National Union Fire Insurance Company of Pittsburgh.
Worldwide
All terms and conditions as set forth in the wording, such wording being Willis Excess Financial Lines Policy Wording as attached amended by and incorporating the following:
| 1. | NMA 2975 (amended) Special Cancellation Clause 30/5/03, as attached. |
| 2. | LMA 5218 U.S. Terrorism Risk Insurance Act of 2002 As Amended New And Renewal Business Endorsement 12/1/2015 amended, as attached. |
| 3. | NMA 2918 (amended) War and Terrorism Exclusion Endorsement 8/10/2001, as attached. |
| 4. | Premium Payment Clause LSW 3001, as attached |
| 5. | NMA 1256 Nuclear Incident Exclusion Clause - Liability - Direct (Broad) 17/3/60, as attached. |
| 6. | NMA 1477 Radioactive Contamination Exclusion Clause - Liability - Direct (13/02/64), as attached. |
| 7. | Service of Suit Claus NMA 1998, as attached. |
| 8. | Sanctions Clause, as attached |
| 9. | NMA Lines Clause NMA 2419 |
| 10. | IUA 09-054 Foreign Account Tax Compliance Act |
| (“FATCA”), as attached. | |
| 11. | INSTITUTE RADIOACTIVE CONTAMINATION, CHEMICAL, BIOLOGICAL, BIO.CHEMICAL AND |
| ELECTROMAGNETIC WEAPONS EXCLUSION CLAUSE, as attached. | |
| 12. | Losses to be notified to Insurers via:- Willis Limited Finex Global - Claims Department 51 Lime Street London EC3M 7DQ |
| United Kingdom |
Nothing in this Contract shall be construed to be a condition precedent or warranty unless it is expressly stated as such in the Contract.
This contract shall be governed by, and construed in accordance with,
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PREMIUM:
PREMIUM PAYMENT
TERMS:
TAXES PAYABLE BY
INSURED AND ADMINISTERED BY
INSURERS:
TAXES PAYABLE BY
INSURERS AND ADMINISTERED BY INSURED OR THEIR AGENT:
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the laws of the State of Massachusetts of the United States of America as more fully set out in the contract wording.
Any dispute between the parties over the terms of this contract shall be submitted to the exclusive jurisdiction of the Courts of United States of America as more fully set out in the NMA 1998 (24/4/86) Service of Suit Clause (U.S.A) as attached
The language used for contract interpretation shall be English as set out in the contract wording.
Service of Suit Nominee:
Service of Suit Clause (as attached) Mendes & Mount LLP
750 Seventh Avenue New York NY 10019-6829 United States of America
USD 157,242 for USD 40,000,000 order hereon, of which USD 1,572.24 in respect of TRIA
Any return premium will be calculated, stated and payable by (re)insurers as net of all Broker Remuneration and Deductions as allowed and declared herein.
Premium Payment Condition as follows:
LSW 3001 (amended) Premium Payment Clause – 60 days, as attached due to Insurers on or before 30 August 2019.
Where any date on which the Premium is due to be paid falls on a weekend or Public Holiday, presentation to Reinsurers or their agents on the next working will be deemed to comply with the relevant premium payment requirement. For the purposes of this clause, Public Holiday shall mean any public or statutory holiday in any territory through which the Premium must pass between the Insured and Insurers or their agents.
None
None
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30% FATCA Withholding Tax only to apply in accordance with the provisions of IUA 09-054.
|
RECORDING, TRANSMITTING AND STORING INFORMATION: |
Where Willis Limited maintains risk and claims data/information/ documents Willis Limited may hold data/information/documents electronically. |
|
INSURER CONTRACT DOCUMENTATION: |
This contract document details the current terms entered into by the insurer(s) and constitutes the contract document. Any further documentation changing this contract agreed in accordance with the contract change provisions set out in this contract, shall form the evidence of such change. |
|
NOTICE OF CANCELLATION PROVISIONS: |
Where (re)insurers have the right to give notice of cancellation, in accordance with the provisions of the contract, then: To the extent provided by the contract, the Slip Leader is authorised to issue such notice on behalf of all participating (re)insurers; and (optionally) any (re)insurer may issue such notice in respect of its own participation. The content and format of any such notice should be in accordance with the ‘Notice of Cancellation’ standard, as published by the London Market Group (LMG), or their successor body, on behalf of London Market Associations and participants. However failure to comply with this standard will not affect the validity of the notice given. The notice shall be provided to the broker by the following means: By an email to FINEXNOC@willis.com Failure to comply with this delivery requirement will make the notice null and void. Satisfactory delivery of the notice will cause it Page 4 |
|
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to be effective irrespective of whether the broker has acknowledged receipt.
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WILLIS EXCESS FINANCIAL LINES POLICY
In consideration of the Insured having paid or agreed to pay the Premium and subject to all of the definitions, terms, conditions and limitations of this Policy, Insurers and the Insured agree as follows:
| 1. | Insuring Agreement | |
| 1.1 | Except insofar as the express terms of this Policy: | |
| (a) | make specific provision in respect of any matter for which specific provision is also made in the Primary Policy, in which case the express terms of this Policy shall prevail; or | |
| (b) | make specific provision in respect of any matter for which no specific provision is made in the Primary Policy, in which case the express terms of this Policy shall apply; | |
| this | Policy shall take effect and operate in accordance with the terms of the Primary Policy. | |
| 1.2 | Subject to the Limit of Liability, the Insurers shall pay to or on behalf of the Insured that | |
| proportion | of Loss which exceeds the Underlying Limit. | |
| 1.3 | Except as provided specifically to the contrary in this Policy, the Insurers shall have no | |
| liability | to make payment for any Loss under this Policy until the Underlying Limit has been | |
| completely | eroded by amounts which the Insured or insurers of any Side A/Difference in | |
| Conditions | Policy or insurers of the Underlying Policy(ies) shall have paid the Underlying | |
| Limit. | ||
| 2. | Definitions | |
Wherever the following words and phrases appear in bold and italics in this Policy they shall have the meanings given to them below:
"Claim" or "Circumstance" shall mean “claim”, “circumstance” or any other term by which the
Primary Policy identifies matters potentially giving rise to payments thereunder in respect of Loss.
"Insured" shall mean those persons and organisations identified at Item 1 of the Schedule and all other persons and organisations as are insured or otherwise entitled to indemnity under the Primary Policy.
"Insurers" shall mean the insurers of this Policy identified at Item 2 of the Schedule.
"Limit of Liability" shall mean the sum(s) shown at Item 4 of the Schedule being the maximum sum(s) the Insurers are liable to pay under this Policy for all Loss, subject to any reinstatement of limit expressly provided for at Item 4 of the Schedule. For the avoidance of doubt, there shall be no reinstatement of the Limit of Liability unless expressly provided for at Item 4, notwithstanding that the Primary Policy may provide for one or more reinstatements.
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"Loss" shall mean all and any amounts for which Insurers are liable to the Insured pursuant to the terms and conditions of this Policy and, for the avoidance of doubt and subject only to the operation
of any express terms hereof in accordance with clause 1.1 above, this Policy shall be liable to pay as Loss all losses, costs, liabilities or damages and other expenses of the Insured as are covered by the Primary Policy of whatever nature and howsoever described by the Primary Policy. However, and notwithstanding any provision to the contrary in the Primary Policy, the liability of the Insurers of this Policy to the Insured for costs and expenses of any kind whatsoever shall be part of, and not in addition to, the Limit of Liability.
"Period of Insurance" shall mean the period set out at Item 3 of the Schedule.
"Policy" shall mean this insurance contract which includes any endorsements and schedules hereto.
"Premium" shall mean the sum shown at Item 6 of the Schedule.
“Primary Limits” shall mean the limits of liability of the Primary Policy applicable to any loss or liability (as applicable) as set out in Item 5(a) of the Schedule.
"Primary Policy" shall mean the policy identified at Item 5(a) of the Schedule or any policy(ies) issued in substitution thereof.
"Relevant Provision" shall mean any provision of an Underlying Policy which reduces the limit of liability of the Underlying Policy automatically by reference to the amount paid or payable under another policy of insurance, or by reference to the limit of liability under another policy of insurance. For the avoidance of doubt, a provision which provides that an Underlying Policy shall pay only the amount by which any loss or liability (as applicable) exceeds the amount paid or payable under any other policy or policies, or which allows the insurer credit for the value of other insurance or indemnification, or which requires the Insured to pursue such insurance or indemnification prior to claiming under the Underlying Policy (such as an “other insurance” or “non-contribution” or other similar provision), shall not be a Relevant Provision.
"Schedule" shall mean the schedule to this Policy.
"Sublimit(s)" shall mean any limit or limits of insurers' liability in the Primary Policy imposed in respect of a particular category of loss or liability (as applicable) and which specifies that the maximum liability of the insurer shall be less than the otherwise generally applicable limit of liability of the Primary Policy.
"Underlying Limit" shall mean the cumulative total of the limits of liability of the insurer(s) of the Underlying Policy(ies) applicable to any loss or liability (as applicable) as set out in Item 5 of the
Schedule.
"Underlying Policy(ies)" shall mean the policies listed at Item 5 of the Schedule.
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3. Maintenance of the Underlying Policy(ies)
The Primary Policy, or any policies issued in substitution thereof, shall be maintained in full force and effect during the Period of Insurance save to the extent that it is eroded. This obligation shall cease to apply in the event that the Primary Policy is completely eroded. Clause 1.3 hereof shall apply for the purposes of determining whether and to what extent erosion has occurred. Where an Underlying Policy other than the Primary Policy does not continue in full force and effect (other than by reason of erosion) such policy shall be deemed for all purposes of this Policy to have been maintained. The Primary Policy shall be deemed maintained if it is replaced by the operation of clause 4 hereof.
4. Step-Down of Cover
Subject always to the Limit of Liability:
| 4.1 | In the event of the reduction of the amount of indemnity available under any Underlying Policy by reason of partial erosion of the Underlying Limit (and in determining the existence and extent of such erosion the provisions of clause 1.3 shall apply) this Policy shall, subject to the Limit of Liability and to the other terms, conditions and limitations of this Policy, continue to be available to pay that proportion of Loss which exceeds the amount of indemnity remaining under the Underlying Policy(ies). |
| 4.2 | In the event of there being no indemnity available under the Underlying Policy(ies) by reason of the complete erosion of the Underlying Limit (and in determining the existence and extent of such erosion the provisions of clause 1.3 shall apply), the remaining limits available under this Policy shall, subject to the Limit of Liability and to the other terms, conditions and limitations of this Policy, continue for subsequent Loss as primary insurance and, in that event, any retention, excess or deductible and the remainder of any Sublimit specified in the Primary Policy shall apply under this Policy in respect of Loss. |
| 5. | Notification |
Any notification to the Primary Policy of a Claim or Circumstance which is required to be given in accordance with the terms and conditions of the Primary Policy shall also be given to the Insurers in writing.
| 6. | Claims Participation |
| 6.1 | The Insurers shall have no liability to pay costs and expenses incurred by or on behalf of the Insured unless their consent to the incurring of such costs and expenses has first been obtained, such consent not to be unreasonably delayed or withheld. |
| 6.2 | No settlement of a claim brought by a third party shall be effected by or on behalf of the Insured for such a sum as will require payment by Insurers under this Policy unless the consent of the Insurers has first been obtained, such consent not to be unreasonably delayed or withheld. |
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7. Cancellation and Termination
This Policy may be terminated or cancelled or shall become automatically terminated or cancelled in the same manner and on the same basis or bases as the Primary Policy. However, breach by the Insured of any obligation to pay premium in respect of the Primary Policy or in respect of any other of the Underlying Policy(ies) shall not entitle the Insurers to terminate or cancel this Policy.
8. Recoveries
Where, following payment of Loss by Insurers, recovery is effected, then such recovery, net of the expenses of its being effected, shall be distributed in the following order to the following parties:
| (i) | to the Insured or, to such extent, if any, as appropriate, to any insurer of a policy applying excess of this Policy, but only to the extent (if any) by which such loss or liability (as applicable) exceeded the sum of the excess, deductible or retention of the Primary Policy, the Underlying Limit and the amount paid hereunder; and, |
| (ii) | if any balance remains following the application of (i) above, to the Insurers to the extent of the amount(s) paid by them hereunder in respect of Loss; and, |
| (iii) | if any balance remains following the application of (i) and (ii) above, to those, if any, entitled pursuant to the operation of the Underlying Policies to such extent, if any, of the entitlements conferred thereunder; and |
For the avoidance of doubt, nothing in this Policy shall be construed as limiting or delaying the Insured's right to payment of any Loss hereunder until such time as it has effected any recovery.
9. Alteration
No material amendment to the terms of the Primary Policy shall apply in respect of this Policy unless and until agreed in writing by the Insurers.
10. Reporting Period
Where the terms of the Primary Policy provide:
| (i) | the Insured with a period of time immediately following the policy period of the Primary Policy during which notice may be given to the insurers of the Primary Policy of any Claims or Circumstances; and/or, |
| (ii) | the right to purchase such a period, |
then the Insured shall have the same period and/or right under this Policy in the same manner and on the same terms as those provided for in the Primary Policy except in relation to the premium payable (if any). The premium (if any) payable in respect of any such period available hereunder is set out in Item 9 of the Schedule.
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11. Governing Law and Jurisdiction
This insurance shall be governed by and construed in accordance with the laws of the State of Massachusetts and any dispute arising hereunder shall be subject to the exclusive jurisdiction of the courts of U.S.A) as per NMA 1998 Service of Suit Clause United States of America as attached.
12. Complaints
The Insurers aim to provide a high standard at all times but if the Insured is not satisfied with the service provided it should contact the following:
In respect of Lloyd's underwriters: the person(s) identified in Item 10(a) of the Schedule.
In respect of Insurers other than Lloyd's underwriters, Willis Limited will provide on request details of the relevant persons.
In the event that the Insured remains dissatisfied it may be possible for the Insured's complaint to be referred to the Financial Ombudsman Service who may review the matter. The Financial Ombudsman Service address is:
Financial Ombudsman Service
South Quay Plaza
183 Marsh Wall
London E14 9SR
Telephone: 0845 0801800
Email: enquiries@financial-ombudsman.org.uk
Website: www.financial-ombudsman.org.uk
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ENDORSEMENT No 1
SPECIAL CANCELLATION CLAUSE
In the event that an Underwriter:
| a) | ceases underwriting; or |
| b) | is the subject of an order or resolution for winding up or formally proposes a scheme of arrangement; or |
| c) | has its authority to carry on insurance business withdrawn, |
| d) | has its financial strength rating reduced by A.M.Best's, Standard & Poor's or equivalent rating agency to less than A-. |
the Insured may terminate that Underwriter's participation on this risk forthwith by giving notice and the premium payable to that Underwriter shall be pro rata to the time on risk. In the event there are any notified, reserved or paid losses or circumstances, premium shall be deemed fully earned. Any return of premium shall also be subject to a written full release of liability from the Insured.
NMA2975 (amended)
30/05/03
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ENDORSEMENT No 2
U.S. TERRORISM RISK INSURANCE ACT OF 2002 AS AMENDED NEW & RENEWAL BUSINESS ENDORSEMENT
This Endorsement is issued in accordance with the terms and conditions of the "U.S. Terrorism Risk Insurance Act of 2002" as amended, as summarized in the disclosure notice.
In consideration of an additional premium of USD 1,572.42 paid, it is hereby noted and agreed with effect from inception that the Terrorism exclusion to which this Insurance is subject, shall not apply to any “insured loss” directly resulting from any "act of terrorism" as defined in the "U.S. Terrorism Risk
Insurance Act of 2002", as amended ("TRIA").
The coverage afforded by this Endorsement is only in respect of any “insured loss” of the type insured by this Insurance directly resulting from an "act of terrorism" as defined in TRIA. The coverage provided by this Endorsement shall expire at 12:00 midnight December 31, 2020, the date on which the TRIA Program is scheduled to terminate, or the expiry date of the policy whichever occurs first, and shall not cover any losses or events which arise after the earlier of these dates. The Terrorism exclusion, to which this Insurance is subject, applies in full force and effect to any other losses and any act or events that are not included in said definition of "act of terrorism".
This Endorsement only affects the Terrorism exclusion to which this Insurance is subject. All other terms, conditions, insured coverage and exclusions of this Insurance including applicable limits and deductibles remain unchanged and apply in full force and effect to the coverage provided by this Insurance.
Furthermore the Underwriter(s) will not be liable for any amounts for which they are not responsible under the terms of TRIA (including subsequent action of Congress pursuant to the Act) due to the application of any clause which results in a cap on the Underwriter’s liability for payment for terrorism losses.
LMA5218
12 January 2015
Form approved by Lloyd's Market Association
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ENDORSEMENT No 3
WAR AND TERRORISM EXCLUSION ENDORSEMENT
Notwithstanding any provision to the contrary within this insurance or any endorsement thereto it is agreed that this insurance excludes loss, damage, cost or expense of whatsoever nature directly or indirectly caused by, resulting from or in connection with any of the following regardless of any other cause or event contributing concurrently or in any other sequence to the loss;
| (1) | war, invasion, acts of foreign enemies, hostilities or warlike operations (whether war be declared or not), civil war, rebellion, revolution, insurrection, civil commotion assuming the proportions of or amounting to an uprising, military or usurped power; or |
| (2) | any act of terrorism. |
| For the purpose of this endorsement an act of terrorism means an act, including but not limited to the use of force or violence and/or the threat thereof, of any person or group(s) of persons, whether acting alone or on behalf of or in connection with any organisation(s) or government(s), committed for political, religious, ideological or similar purposes including the intention to influence any government and/or to put the public, or any section of the public, in fear. |
This endorsement also excludes loss, damage, cost or expense of whatsoever nature directly or indirectly caused by, resulting from or in connection with any action taken in controlling, preventing, suppressing or in any way relating to (1) and/or (2) above.
In the event any portion of this endorsement is found to be invalid or unenforceable, the remainder shall remain in full force and effect.
NMA2918 (amended)
08/10/2001
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ENDORSEMENT No 4
PREMIUM PAYMENT CLAUSE
Notwithstanding any provision to the contrary within this contract or any endorsement hereto, in respect of non payment of premium only the following clause will apply.
The (Re)Insured undertakes that premium will be paid in full to (Re)Insurers by 30 August 2019.
If the premium due under this contract has not been so paid to (Re)Insurers by 30 August 2019 (Re)Insurers shall have the right to cancel this contract by notifying the (Re)Insured via the broker in writing. In the event of cancellation, premium is due to (Re)Insurers on a pro rata basis for the period that (Re)Insurers are on risk but the full contract premium shall be payable to (Re)Insurers in the event of a loss or occurrence prior to the date of termination which gives rise to a valid claim under this contract.
It is agreed that (Re)Insurers shall give not less than 15 days prior notice of cancellation to the (Re)Insured via the broker. If premium due is paid in full to (Re)Insurers before the notice period expires, notice of cancellation shall automatically be revoked. If not, the contract shall automatically terminate at the end of the notice period.
If any provision of this clause is found by any court or administrative body of competent jurisdiction to be invalid or unenforceable, such invalidity or unenforceability will not affect the other provisions of this clause which will remain in full force and effect.
30/09/08
LSW3001
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ENDORSEMENT No 5
U.S.A.
NUCLEAR INCIDENT EXCLUSION CLAUSE-LIABILITY-DIRECT (BROAD)
For attachment to insurances of the following classifications in the U.S.A., its Territories and Possessions, Puerto Rico and the Canal Zone:-Owners, Landlords and Tenants Liability, Contractual Liability, Elevator Liability, Owners or Contractors (including railroad) Protective Liability, Manufacturers and Contractors Liability, Product Liability, Professional and Malpractice Liability, Storekeepers Liability, Garage Liability, Automobile Liability (including Massachusetts Motor Vehicle or Garage Liability), not being insurances of the classifications to which the Nuclear Incident Exclusion Clause-Liability-Direct (Limited) applies.
This policy* does not apply:-
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| (c) | the injury, sickness, disease, death or destruction arises out of the furnishing by an insured of services, materials, parts or equipment in connection with the planning, construction, maintenance, operation or use of any nuclear facility, but if such facility is located within the United States of America, its territories or possessions or Canada, this exclusion (c) applies only to injury to or destruction of property at such nuclear facility. | |
| IV. | As used in this endorsement: | |
| “hazardous | properties” include radioactive, toxic or explosive properties; “nuclear | |
| material” | means source material, special nuclear material or by-product material; “source | |
| material”, | “special nuclear material”, and "by-product material" have the meanings given | |
| them | in the Atomic Energy Act 1954 or in any law amendatory thereof; “spent fuel” means | |
| any | fuel element or fuel component, solid or liquid, which has been used or exposed to | |
| radiation | in a nuclear reactor; “waste” means any waste material (1) containing by-product | |
| material | and (2) resulting from the operation by any person or organization of any nuclear | |
| facility | included within the definition of nuclear facility under paragraph (a) or (b) thereof; | |
| “nuclear | facility” means | |
| (a) | any nuclear reactor, | |
| (b) | any equipment or device designed or used for (1) separating the isotopes of uranium or plutonium, (2) processing or utilizing spent fuel, or (3) handling, processing or packaging waste, | |
| (c) | any equipment or device used for the processing, fabricating or alloying of special nuclear material if at any time the total amount of such material in the custody of the insured at the premises where such equipment or device is located consists of or contains more than 25 grams of plutonium or uranium 233 or any combination thereof, or more than 250 grams of uranium 235, | |
| (d) | any structure, basin, excavation, premises or place prepared or used for the storage or disposal of waste, and includes the site on which any of the foregoing is located, all operations conducted on such site and all premises used for such operations; “nuclear reactor” means any apparatus designed or used to sustain nuclear fission in a self- supporting chain reaction or to contain a critical mass of fissionable material. With respect to injury to or destruction of property, the word “injury” or “destruction” includes all forms of radioactive contamination of property. | |
It is understood and agreed that, except as specifically provided in the foregoing to the contrary, this clause is subject to the terms, exclusions, conditions and limitations of the Policy to which it is attached.
*NOTE:- As respects policies which afford liability coverages and other forms of coverage in addition, the words underlined should be amended to designate the liability coverage to which this clause is to apply.
17/3/60
N.M.A. 1256
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ENDORSEMENT No 6
U.S.A.
RADIOACTIVE CONTAMINATION EXCLUSION CLAUSE
-LIABILITY-DIRECT
(Approved by Lloyd's Underwriters' Non-Marine Association)
For attachment (in addition to the appropriate Nuclear Incident Exclusion Clause - Liability -Direct) to liability insurances affording worldwide coverage.
In relation to liability arising outside the U.S.A, its Territories or Possessions, Puerto Rico or the Canal Zone, this Policy does not cover any liability of whatsoever nature directly or indirectly caused by or contributed to by or arising from ionising radiations or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel.
13/2/64
N.M.A. 1477
All other terms, conditions and limitations of this Policy shall remain unchanged.
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ENDORSEMENT No 7
SERVICE OF SUIT CLAUSE (U.S.A.)
It is agreed that in the event of the failure of the Underwriters hereon to pay any amount claimed to be due hereunder, the Underwriters hereon, at the request of the Assured (or Reinsured), will submit to the jurisdiction of a Court of competent jurisdiction within the United States. Nothing in this Clause constitutes or should be understood to constitute a waiver of Underwriters’ rights to commence an action in any Court of competent jurisdiction in the United States, to remove an action to a United States District Court, or to seek a transfer of a case to another Court as permitted by the laws of the United States or of any State in the United States. It is further agreed that service of process in such suit may be made upon Mendes & Mount LLP, 750 Seventh Avenue, New York New York 10019-6829, United States of America and that in any suit instituted against any one of them upon this contract, Underwriters will abide by the final decision GUA (Version 2.0 February 2014) with Non-Marine Schedule - October 2001
| A. | In respect of each (re)insurer which at any time has the ability to send and receive ACORD | |
| messages | via the Exchange: | |
| i. | Any contract change will be submitted by Willis Limited for agreement via an 'ACORD message'; | |
| ii. | any contract change which requires notification will be notified by Willis Limited via an 'ACORD message'; | |
| iii. | It is understood and agreed that whilst any contract change may be negotiated and agreed in any legally effective manner (and will be binding at that stage), such agreement of any contract change will be confirmed by each such (re)insurer via an appropriate 'ACORD message'. For the avoidance of any doubt, no further duty of disclosure arises in relation to any such confirmation. | |
| of | such Court or of any Appellate Court in the event of an appeal. | |
The above-named are authorized and directed to accept service of process on behalf of Underwriters in any such suit and/or upon the request of the Assured (or Reinsured) to give a written undertaking to the Assured (or Reinsured) that they will enter a general appearance upon Underwriters’ behalf in the event such a suit shall be instituted.
Further, pursuant to any statute of any state, territory or district of the United States which makes provision therefor, Underwriters hereon hereby designate the Superintendent, Commissioner or Director of Insurance or other officer specified for that purpose in the statute, or his successor or successors in office, as their true and lawful attorney upon whom may be served any lawful process in any action, suit or proceeding instituted by or on behalf of the Assured (or Reinsured) or any beneficiary hereunder arising out of this contract of insurance (or reinsurance), and hereby designate the above-named as the person to whom the said officer is authorized to mail such process or a true copy thereof.
N.M.A. 1998 (24/4/86)
All other terms, conditions and limitations of this Policy shall remain unchanged.
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ENDORSEMENT No 8
SANCTIONS CLAUSE
No (re)insurer shall be deemed to provide cover and no (re)insurer shall be liable to pay any claim or provide any benefit hereunder to the extent that the provision of such cover, payment of such claim or provision of such benefit would expose the (re)insurer or its' parent, to any sanction, prohibition or restriction implemented pursuant to resolutions of the United Nations or the trade and economic sanctions, laws or regulations of the European Union, United Kingdom or United States of America.
ENDORSEMENT No 9
NMA LINES CLAUSE
This Insurance, being signed for USD 40,000,000 of USD 70,000,000 insures only that proportion of any loss, whether total or partial, including but not limited to that proportion of associated expenses, if any, to the extent and in the manner provided in this Insurance.
The percentages signed in the Table are percentages of 100% of the amount(s) of Insurance stated herein.
NMA 2419
ENDORSEMENT No 10
FOREIGN ACCOUNT TAX COMPLIANCE ACT (“FATCA”)
Each (Re)Insurer hereby acknowledges the requirements of Sections 1471-1474 US Internal Revenue Code of 1986, as amended, and the Treasury regulations and other guidance issued from time to time thereunder (“FATCA”) and the obligation of each of them to provide to the Broker Willis Limited a valid Internal Revenue Service (“IRS”) Form W8-BEN-E, W-9 or other documentation meeting the requirements of the FATCA regulations to establish they are not subject to any withholding requirement pursuant to FATCA (the “Required Documentation”).
Furthermore:
| a) | If a (Re)Insurer becomes non-compliant with FATCA during the contract period or has not provided the Broker with the Required Documentation 14 days prior to any premium due date, the Withholding Agent (as defined in U.S. Treasury Regulation Section 1.1471-1(b)(147)) shall withhold 30% of the premium (to the extent all or a portion of that premium is subject to |
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| withholding pursuant to FATCA) due to that (Re)Insurer under this contract on that premium due date and shall promptly notify that (Re)Insurer via the Broker. | |
| b) | The withholding of premium by virtue of (a) above shall not be, and shall not be treated by the (Re)Insurer as a breach of any premium payment condition, warranty or other clause whether or not entitling the (Re)Insurer to cancel, terminate or restrict this contract, refuse, restrict or delay payment of any claim or invoke any interest, penalty or other late payment provision. The (Re)Insurer shall be liable under this contract as if no such withholding had been made. |
| c) | The (Re)Insurer shall not recoup sums withheld under (a) above by deducting equivalent sums from any payments due to the (Re)Insured or by set off against any other sums owed by the (Re)Insurer and any general or contractual right of set-off enjoyed by the (Re)Insurer is hereby varied and qualified to that extent. |
| d) | Where premium is withheld in error, has not yet been paid to the IRS and the underwriter has been paid only the net premium following such withholding, the broker will cooperate with the (re)insurer to process the requisite refund. |
IUA 09-054
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ENDORSEMENT No 12
The following endorsement applies solely in respect of Pioneer participation only:
INSTITUTE RADIOACTIVE CONTAMINATION, CHEMICAL, BIOLOGICAL, BIO.CHEMICAL AND ELECTROMAGNETIC WEAPONS EXCLUSION CLAUSE
This clause shall be paramount and shall override anything contained in this insurance inconsistent therewith: 1. ln no case shall this insurance cover loss damage liability or expense directly or indirectly caused by or contributed to by or arising from: 1.1 ionizing radiations from or contamination by radioactivity from any nuclear fuel or from any nuclear waste or from the combustion of nuclear fuel; 1.2 the radioactive, toxic, explosive or other hazardous or contaminating properties of any nuclear installation, reactor or other nuclear assembly or nuclear component thereof; 1.3 any weapon or device employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter; 1.4 the radioactive, toxic, explosive or other hazardous or contaminating properties of any radioactive matter. The exclusion in this sub-clause does not extend to radioactive isotopes, other than nuclear fuel, when such isotopes are being prepared, carried, stored, or used for commercial, agricultural, medical, scientific or other similar peaceful purposes 1.5 any chemical, biological, bio-chemical, or electromagnetic weapon.
10/11/03 c1370
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2. INFORMATION
INFORMATION:
This section details the information that was provided to Insurers to support the assessment of the risk at the time of underwriting.
Where it is required to provide exposure information it is recommended that this should follow the ACORD exposure schedule standard which can be found at www.acord.org
|
Insured: Type of Insurance Policy Period: |
Fidelity Fixed Income and Asset Allocation Funds. Excess Financial Institutions Bond 01 July 2019 to 01 July 2020 |
INFORMATION
(made available to and seen and agreed by Underwriters)
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| 3. SECURITY DETAILS | |
| (RE)INSURER’S | |
| LIABILITY: | (RE)INSURERS LIABILITY CLAUSE |
|
(Re)insurer’s liability several not joint The liability of a (re)insurer under this contract is several and not joint with other (re)insurers party to this contract. A (re)insurer is liable only for the proportion of liability it has underwritten. A (re)insurer is not jointly liable for the proportion of liability underwritten by any other (re)insurer. Nor is a (re)insurer otherwise responsible for any liability of any other (re)insurer that may underwrite this contract. The proportion of liability under this contract underwritten by a (re)insurer (or, in the case of a Lloyd’s syndicate, the total of the proportions underwritten by all the members of the syndicate taken together) is shown next to its stamp. This is subject always to the provision concerning “signing” below. In the case of a Lloyd’s syndicate, each member of the syndicate (rather than the syndicate itself) is a (re)insurer. Each member has underwritten a proportion of the total shown for the syndicate (that total itself being the total of the proportions underwritten by all the members of the syndicate taken together). The liability of each member of the syndicate is several and not joint with other members. A member is liable only for that member’s proportion. A member is not jointly liable for any other member’s proportion. Nor is any member otherwise responsible for any liability of any other (re)insurer that may underwrite this contract. The business address of each member is Lloyd’s, One Lime Street, London EC3M 7HA. The identity of each member of a Lloyd’s syndicate and their respective proportion may be obtained by writing to Market Services, Lloyd’s, at the above address. Proportion of liability Unless there is “signing” (see below), the proportion of liability under this contract underwritten by each (re)insurer (or, in the case of a Lloyd’s syndicate, the total of the proportions underwritten by all the members of the syndicate taken together) is shown next to its stamp and is referred to as its “written line”. Where this contract permits, written lines, or certain written lines, may be adjusted (“signed”). In that case a schedule is to be appended to this contract to show the definitive proportion of liability under this contract underwritten by each (re)insurer (or, in the case of a Lloyd’s syndicate, the total of the proportions underwritten by all the members of the syndicate taken together). |
|
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ORDER HEREON:
BASIS OF WRITTEN
LINES:
BASIS OF SIGNED LINES:
SIGNING
PROVISIONS:
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A definitive proportion (or, in the case of a Lloyd’s syndicate, the total of the proportions underwritten by all the members of a
Lloyd’s syndicate taken together) is referred to as a “signed line”.
The signed lines shown in the schedule will prevail over the written lines unless a proven error in calculation has occurred.
Although reference is made at various points in this clause to “this contract” in the singular, where the circumstances so require this should be read as a reference to contracts in the plural.
21/6/07
LMA3333
USD 40,000,000 of USD 70,000,000
Percentage of order
NMA 2419 Lines Clause, as attached
Percentage of order.
In the event that the written lines hereon exceed 100% of the order, any lines written “to stand” will be allocated in full and all other lines will be signed down in equal proportions so that the aggregate signed lines are equal to 100% of the order without further agreement of any of the (re)insurers.
However:
| a) | in the event that the placement of the order is not completed by the commencement date of the period of (re)insurance then all lines written by that date will be signed in full; |
| b) | the signed lines resulting from the application of the above provisions can be varied, before or after the commencement date of the period of (re)insurance, by the documented agreement of the (re)insured and all (re)insurers whose lines are to be varied. The variation to the contracts will take effect only when all such (re)insurers have agreed, with the resulting variation in signed lines commencing from the date set out in that agreement. |
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WRITTEN LINES
MODE OF EXECUTION CLAUSE
This contract and any changes to it may be executed by:
| (a) | electronic signature technology employing computer software and a digital signature or digitiser pen pad to capture a person’s handwritten signature in such a manner that the signature is unique to the person signing, is under the sole control of the person signing, is capable of verification to authenticate the signature and is linked to the document signed in such a manner that if the data is changed, such signature is invalidated; |
| (b) | a unique authorisation provided via a secure electronic trading platform |
| (c) | a timed and dated authorisation provided via an electronic message/system; |
| (d) | an exchange of facsimile/scanned copies showing the original written ink signature of paper documents; |
| (e) | an original written ink signature of paper documents (or a true representation of a signature, such as a rubber stamp).; |
The use of any one or a combination of these methods of execution shall constitute a legally binding and valid signing of this contract. This contract may be executed in one or more of the above counterparts, each of which, when duly executed, shall be deemed an original.
In a co-insurance placement following (re)insurers may, but are not obliged to, follow the premium charged by the lead (re)insurer.
(Re)insurers may not seek to guarantee for themselves terms as favourable as those which others subsequently achieve during the placement.
It is the responsibility of each (Re)insurer subscribing to this contract to ensure that they are appropriately licenced to underwrite this contract in the territories described herein and can also discharge their relevant Insurance Premium Tax obligations.
| UMR: | B080113011P19 |
| (Original) Insured: | Fidelity Fixed Income and Asset Allocation Funds |
| Written % | Signed and Dated Stamp |
| Incorporating Underwriting Reference | |
Details of variation(s) to the contract applying to the above Insurer only:
| Premium: | for 100% for the policy period |
| Brokerage: | % |
| SMB: | % |
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CONTRACT ADMINISTRATION AND ADVISORY SECTIONS
(Applying to the contract but not forming part of the client’s contract documentation)
4. SUBSCRIPTION AGREEMENT
SLIP LEADER:
BUREAU LEADER:
BASIS OF AGREEMENT TO CONTRACT
CHANGES:
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For the purposes of SCAP the Slip Leader must be (a) an authorised person (as defined in Section 31 of the Financial Services and Markets Act 2000) with the permission to effect and carry out the contracts of insurance; or (b) a member of Lloyd’s.
Not applicable unless completed here.
Lloyd's Leader LIRMA Leader ILU Leader
(Where both company and Lloyd’s participate, both Bureau
Leaders should be included. For the purposes of SCAP, the Bureau Leader(s) must be identified).
(For claims falling within the scope of the Single Claims Agreement Party (SCAP) Arrangements, claims at or below the Threshold Amount to be agreed by the SLIP LEADER only according to the terms of the SCAP Arrangements and the Bureau Leaders are to adhere to the applicable claims agreement practices and act in accordance with CLAIMS AGREEMENT PARTIES (as defined in A or B below).
GUA (Version 2.0 February 2014) with Non-Marine Schedule -October 2001
| A. | In respect of each (re)insurer which at any time has the ability | |
| to | send and receive ACORD messages via the Exchange: | |
| i. | Any contract change will be submitted by Willis Limited for agreement via an 'ACORD message'; | |
| ii. | any contract change which requires notification will be notified by Willis Limited via an 'ACORD message'; | |
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| iii. | It is understood and agreed that whilst any contract change may be negotiated and agreed in any legally effective manner (and will be binding at that stage), such agreement of any contract change will be confirmed by each such (re)insurer via an appropriate 'ACORD message'. For the avoidance of any doubt, no further duty of disclosure arises in relation to any such confirmation. | |
| B. | In respect of each (re)insurer who does not have the ability to | |
| send | and receive ACORD messages via the Exchange: | |
| i. | It is understood and agreed that whilst any contract change may be negotiated and agreed in any legally effective manner (and will be binding at that stage), any such contract change will be submitted/notified by Willis Limited electronically via email or other electronic means; | |
| ii. | Such binding agreement of any contract change will be confirmed by each such (re)insurer via email or other electronic means. For the avoidance of any doubt, no further duty of disclosure arises in relation to any such confirmation. | |
Where there is a requirement for any wording to be agreed this is to be agreed by the Slip Leader only.
The Slip Leader is to determine whether amendments to the wording fall into part one, part two or part three of the GUA schedule.
The period of this contract may be extended for up to one calendar month at expiry, at terms to be agreed by the Slip Leader only.
The following clause is applicable to insurance risks which are eligible for TRIA.
TRIA NOTICE CLAUSE
Authority is hereby given to the Slip Leader to issue notice to Insured(s) as required by the U.S. Terrorism Risk Insurance Act of 2002 on behalf of all insurers hereon.
Where differing premium and/or broker remuneration and deductions terms apply to subscribing (re)insurers to this contract and the contract is subsequently subject to any form of additional/return premium, it is hereby agreed that the original premium and/or broker remuneration and deductions proportions shall be applied to such additional/return premium unless specifically stipulated to be otherwise in the endorsement.
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OTHER
AGREEMENT PARTIES FOR CONTRACT
CHANGES, FOR PART 2 GUA CHANGES ONLY:
OTHER
AGREEMENT PARTIES FOR
CONTRACT CHANGES, FOR
THEIR PROPORTION
ONLY:
BASIS OF CLAIMS
AGREEMENT:
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Where no other agreement parties for contract changes are stated herein, the agreement party will be the Slip Leader only.
Where no other agreement parties for contract changes are stated herein, the agreement party will be the Slip Leader only.
As specified under the CLAIMS AGREEMENT PARTIES section of this Contract and to be managed in accordance with:
| i) | The SINGLE CLAIMS AGREEMENT PARTY ARRANGEMENT – LMA9150 [as below] for claims or circumstances assigned as Single Claims Agreement Party Claims (SCAP Claims) or, where it is not applicable, then the following shall apply as appropriate:- |
| ii) | The Lloyd’s Claims Scheme (combined) or as amended or any successor thereto. |
(N.B. The applicable Lloyd’s Claims Scheme/part will be determined by the rules and scope of the Schemes(s))
| iii) | IUA claims agreement practices. |
| iv) | The practices of any company(ies) electing to agree claims in respect of their own participation. |
The applicable arrangements (scheme, agreement or practices) will be determined by the rules and scope of said arrangements and should be referred to as appropriate.
Single Claims Agreement Party Arrangements
| 1 | Single Claims Agreement Party |
| 1.1 | Scope |
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All claims having, or circumstances assessed by the SLIP LEADER as having, a Claim Amount at or below GBP250,000 or currency equivalent (the Threshold Amount) will be designated a Single Claims Agreement Party Claim (SCAP Claim) and will be managed within the terms of these Single Claims Agreement Party Arrangements (these Arrangements). For the purposes of these Arrangements the SLIP LEADER must be: (a) an authorised person (as defined in Section 31 of the Financial Services and Markets Act 2000) with permission to effect and/or carry out contracts of insurance; or (b) a Member of Lloyd’s.
1.2 Exceptions
Where:
| 1.2.1 | the Claim Amount is more than, or, in the assessment of the SLIP LEADER, is likely to be more than, the Threshold Amount; and/or |
| 1.2.2 | after making further enquiries, there remains insufficient information to form a view on the likely quantum of any circumstance or claim and in the |
| SLIP LEADER’S assessment, there is a material risk that the quantum will ultimately exceed the | |
| Threshold Amount; and/or | |
| 1.2.3 | issues arise of fraud or avoidance (either under the Insurance Act 2015 or otherwise) or there are allegations against (re)insurers of regulatory breach which may result in regulatory action being taken against (re)insurers, or actionable allegations of improper claims handling have been made in respect of the claim at issue, or, in the assessment of the SLIP |
| LEADER, such issues are likely to arise in connection with a claim; and/or | |
| 1.2.4 | in the assessment of the SLIP LEADER a claim is, or is likely to become, controversial or complex, or is likely to become subject to Dispute Resolution Proceedings, |
such claims or circumstances shall be managed in accordance with the provisions of the applicable BASIS OF CLAIMS AGREEMENT.
| 2 | Slip Leader Responsibilities |
| 2.1 | Receipt of a Claim |
Upon receiving a notification of a claim or circumstance, the SLIP LEADER shall, as soon as practicable, reasonably assess and decide, based on all the relevant circumstances (including but not limited to the Claims Information), whether such claim or circumstance is a
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SCAP Claim and notify the Broker accordingly with instructions for it to advise this decision to all claims agreement parties defined in B of the CLAIMS AGREEMENT PARTIES section.
| 2.2 | Role of the Slip Leader |
| A | SCAP Claim shall be Determined by the SLIP LEADER on behalf |
of itself and all (re)insurers which subscribe: (1) to this Contract on the same contractual terms (other than premium and brokerage); and (2) to these Arrangements (Subscribing (Re)Insurers).
When Determining a SCAP Claim, including where the SLIP
LEADER may have delegated the Determination of a SCAP Claim, the SLIP LEADER must always:
| 2.2.1 | act in good faith and exercise the reasonable care of a competent (re)insurer; and |
| 2.2.2 | act in the best interest of all Subscribing (Re)Insurers on whose behalf it acts; and |
| 2.2.3 | comply with all laws, sanctions regimes, regulations and related guidance (including, but not limited to, those issued by Lloyd’s, the Financial Conduct |
| Authority and/or the Prudential Regulation Authority) as may be applicable to the Determination of a SCAP Claim and to which the SLIP LEADER is subject, including, but not limited to conduct of business rules requiring (re)insurers to treat customers fairly (if applicable in that jurisdiction); and | |
| 2.2.4 | notify either directly or via the Broker, all |
| Subscribing (Re)Insurers of any Dispute Resolution Proceedings commenced against them. |
For the avoidance of doubt, the SLIP LEADER shall have no obligations or liability to any (re)insurer, other than a Subscribing (Re)Insurer, arising out of or in any way connected with the
Determination of a SCAP Claim.
2.3 Reassigning Claims
Where during the life of a SCAP Claim any of the provisions of clause 1.2 apply, the SLIP LEADER shall:
| 2.3.1 | reassign the SCAP Claim to the claims agreement parties defined in B of the CLAIMS AGREEMENT |
| PARTIES section; and | |
| 2.3.2 | notify the Broker accordingly with instructions for it to advise all applicable claims agreement parties Page v |
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defined in B of the CLAIMS AGREEMENT PARTIES section, following which the provisions of the applicable BASIS OF CLAIMS AGREEMENT shall apply to the claim.
The SLIP LEADER may, at any time, reassign a SCAP Claim outside of these Arrangements if having due regard to the available Claims Information, all relevant circumstances and its ability to act in accordance with clauses 2.2.1 to 2.2.3 inclusive, it considers that this assignment would be appropriate, following which the provisions of the applicable BASIS OF CLAIMS AGREEMENT shall apply to the claim.
The Broker may also, at any time, reassign a SCAP Claim outside of these Arrangements and to the provisions of the applicable BASIS
OF CLAIMS AGREEMENT by advising all claims agreement parties defined in B of the CLAIMS AGREEMENT PARTIES section.
Where a SCAP Claim has been reassigned outside of these Arrangements, it may not, without the consent of all claims agreement parties defined in B of the CLAIMS AGREEMENT PARTIES section, be reassigned as a SCAP Claim.
Notwithstanding clauses 1.2.1 and 1.2.2 but without prejudice to any other right or requirement to (re)assign a SCAP Claim outside of these Arrangements, where the exchange rate between Sterling and the currency in which the SCAP Claim has been made fluctuates after the conversion date stated in A of the CLAIMS AGREEMENT PARTIES section such that the Sterling value of the claim exceeds the Threshold Amount, the claim shall not cease to be a SCAP Claim by reason of the currency fluctuation alone.
2.4 Delegation of Determination
The SLIP LEADER may delegate its Determination of a SCAP Claim to another entity.
Despite its right to delegate the Determination of a SCAP Claim pursuant to these Arrangements the SLIP LEADER shall remain responsible for all acts and omissions of the delegate and the acts and omissions of those employed or engaged by the delegate as if they were its own.
2.5 Processing Claims
The SLIP LEADER shall ensure that all supporting information has been properly documented prior to payment of the claim and that such records are kept for a period of no less than seven years after closure, subject always to the requirements of applicable laws (including but not limited to those applicable to the processing of personal data and privacy).
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3 Broker Responsibilities
Notwithstanding the application of these Arrangements, the Broker shall advise all claims agreement parties defined in B of the CLAIMS AGREEMENT PARTIES section of any or all of the following matters or events, where known, as soon as practicable:
| 3.1 | any new claim or circumstance assigned as a SCAP Claim; |
| 3.2 | any recommended reserve or reserves for a SCAP Claim; |
| 3.3 | any revision to the recommended reserve or reserves for a |
| SCAP Claim; | |
| 3.4 | any change in the assignment of a SCAP Claim; |
| 3.5 | the receipt of notice of the commencement of any Dispute Resolution Proceedings relating to a SCAP Claim; |
| 3.6 | the final Determination of a SCAP Claim, including where a SCAP Claim is denied; |
| 3.7 | any receipt of a complaint against (re)insurers; |
| 3.8 | any termination of the SLIP LEADER’s authority to Determine claims under clauses 4.1 to 4.3 inclusive; and/or |
| 3.9 | where so requested by the SLIP LEADER, the identity and participation of all Subscribing (Re)Insurers. |
| A | Subscribing (Re)Insurer may request the SLIP LEADER and/or |
Broker to provide such further information as it may reasonably require and the SLIP LEADER and Broker shall co-operate fully with any such request.
4 Termination of the SLIP LEADER’s Authority
In the event that the SLIP LEADER:
| 4.1 | becomes the subject of voluntary or involuntary rehabilitation or liquidation, action in bankruptcy or similar or in any way otherwise acknowledges its insolvency or is unable to pay its debts or losses; or |
| 4.2 | has its right to transact the main class of business covered by the slip withdrawn, suspended, removed or made conditional or impaired in any way by any regulatory authority; or |
| 4.3 | ceases to be either: (a) an authorised person (as defined in Section 31 of the Financial Services and Markets Act 2000) with permission to effect and/or carry out contracts of insurance; or (b) a member of Lloyd’s, |
the authority of that SLIP LEADER to Determine all SCAP Claims shall automatically terminate from the date of that event, following which the provisions of the applicable BASIS OF CLAIMS
AGREEMENT shall apply to the claim.
5 Professional Advisers
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| 5.1 | The SLIP LEADER has the sole authority to appoint and instruct an independent, external, professional adviser (which may include, but is not limited to, a lawyer, loss adjuster, surveyor, actuary or accountant) on behalf of Subscribing (Re)Insurers where, in its sole discretion, it considers the professional adviser necessary for the Determination of a claim. The SLIP LEADER shall supervise the professional adviser throughout the period of their appointment. |
| 5.2 | A professional adviser appointed in connection with a SCAP Claim pursuant to clause 5.1 above may, at the SLIP |
| LEADER’s discretion, be instructed to send all reports and correspondence directly to the SLIP LEADER. The professional adviser’s fees shall be agreed by the SLIP | |
| LEADER. The fees of the professional adviser shall be shared between the Subscribing (Re)Insurers in accordance with their respective shares of the SCAP Claim. | |
| 6 | Claims Concerns |
If a Subscribing (Re)Insurer has a concern regarding the handling of a SCAP Claim by the SLIP LEADER it shall notify the SLIP
LEADER of its concern. The SLIP LEADER and the Subscribing (Re)Insurer which has raised the concern shall promptly confer and use their best endeavours to resolve the concern. If any disagreement remains after a period of 28 days from the date on which the concern was notified to the SLIP LEADER, the authority of the SLIP
LEADER to Determine the SCAP Claim to which the concern relates shall terminate, following which the provisions of the applicable BASIS OF CLAIMS AGREEMENT shall apply to the claim.
7 Intra-(Re)Insurer Dispute Resolution Protocols
Before a Subscribing (Re)Insurer (Claimant) can bring a legal claim against the SLIP LEADER in relation to the Determination of a SCAP Claim or for an alleged breach of its obligations under these Arrangements, it must first attempt to resolve the dispute (Dispute) as follows:
| 7.1 | The Claimant shall notify the SLIP LEADER that it is commencing the Dispute Resolution Protocols prescribed in this clause 7. |
| 7.2 | The Dispute shall first be referred to representatives of the SLIP LEADER and of the Claimant who shall meet in a good faith effort to resolve the Dispute. If a resolution is not achieved within 21 days from the date the Dispute was referred to these individuals, the matter shall be escalated to a member of senior management responsible for claims, for each of the Claimant and SLIP LEADER, who shall attempt to resolve the Dispute. |
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| 7.3 | If the Dispute has not been resolved within 28 days from the date upon which it is referred to senior management, then the Claimant and SLIP LEADER shall enter into a mediation agreement in the form prescribed by the LMA and IUA. If the resulting mediation fails to resolve the Dispute, then the Dispute shall be settled by arbitration in accordance with clause 7.4, provided always that the decision to commence an arbitration must be taken by the senior management of the Claimant in question. |
| 7.4 | All arbitrations arising out of or in connection with a Dispute shall be referred to arbitration under ARIAS Fast Track Arbitration Rules. The seat of arbitration shall be London. |
| 8 | Limitation of Liability |
| 8.1 | The total liability, whether in contract, in tort (including but not limited to negligence), breach of fiduciary duty, breach of statutory duty or otherwise, of a SLIP LEADER to all Subscribing (Re)Insurers on whose behalf it has acted, or is acting, under these Arrangements shall not exceed GBP |
| 500,000 in respect of any one SCAP Claim (Liability Cap). | |
| 8.2 | If the aggregate liability of a SLIP LEADER in respect of any one SCAP Claim would exceed the Liability Cap, the |
| Subscribing (Re)Insurers shall each be entitled to be paid only a share of the Liability Cap calculated in proportion to the share of the (re)insurance underwritten by each Subscribing (Re)Insurer (excluding for the purposes of this clause any share underwritten by the SLIP LEADER). | |
| 8.3 | A SLIP LEADER shall not be liable for loss of profits, loss of |
| business, | loss of use (in each case whether direct or indirect) |
| or | any other indirect, special, or consequential damages |
| alleged | to have been suffered by a Subscribing (Re)Insurer |
| arising | out of its breach of the terms of these Arrangements. |
| 8.4 | Notwithstanding clause 8.3 but subject always to clauses 8.1, |
| 8.2 | and 8.5, nothing in this clause 8 is intended to exclude the |
| SLIP | LEADER’S liability to the Subscribing (Re)Insurers |
| in | respect of damages payable by the Subscribing |
| (Re)Insurers | to the (re)insured, in addition to the Claim |
| Amount, | arising from the mishandling of a SCAP Claim by |
| the | SLIP LEADER, its agents or employees, where such |
| mishandling | gives rise to an actionable claim for damages |
| against | Subscribing (Re)Insurers. |
| 8.5 | Nothing in these Arrangements shall exclude, restrict or |
| limit | with respect to the handling of a SCAP Claim a SLIP |
| LEADER’s | liability for: (1) fraud or fraudulent |
| misrepresentation; | (2) death or personal injury caused by its |
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negligence or the negligence of its employees or agents; or (3) any matter in respect of which it would be unlawful to exclude or restrict liability.
9 Choice of Law and Jurisdiction
Notwithstanding any other choice of law, express or implied in the contract of (re)insurance, the provisions of these Arrangements shall be construed and governed in accordance with the Laws of England and Wales and the Subscribing (Re)Insurers submit to the exclusive jurisdiction of the Courts of England and Wales.
| 10 | Exclusions | |
| 10.1 | The following types of business (and applicable risk codes for | |
| Lloyd’s) | are excluded from these Arrangements: | |
| 10.1.1 | Binding Authorities; | |
| 10.1.2 | Proportional & Quota Share Treaties. | |
| 10.2 | The following forms of settlement are excluded from these | |
| Arrangements: | ||
| 10.2.1 | ex gratia payments of any kind; | |
| 10.2.2 | commutation agreements. | |
Definitions
In these Arrangements, unless the context otherwise requires, the following words shall have the following meanings:
Claim Amount means:
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CLAIMS AGREEMENT
PARTIES:
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Claims Information means the information contained within a notification or provided by the (re)insured or its agent in relation to a SCAP Claim. It also includes all information obtained by the SLIP LEADER or provided by any Professional Adviser employed by (re)insurers.
Contract means, for the purposes of these Arrangements, (re)insurance evidenced by (re)insurers subscribing to a single Market Reform Contract and where all (re)insurers participate on the same contractual terms and conditions (other than premium and brokerage).
Determination/Determine means all claims handling activities necessary (including the appointment and instruction of any
Professional Advisers) in order to: (i) accept or deny a SCAP Claim, in whole or in part; (ii) agree any amount payable and (iii) resolve finally any open matter in respect of the SCAP Claim by agreement or, negotiation.
Dispute Resolution Proceedings means any litigation, arbitration, mediation, regulatory hearing (other than before an ombudsman) or other contested proceeding commenced by or against Subscribing (Re)Insurers in any jurisdiction.
LMA9150
01 February 2018
| A. | Claims falling within the scope of the (LMA9150) to be agreed by Slip Leader only on behalf of all (re)insurers subscribing (1) to this Contract on the same contractual terms (other than premium and brokerage) and (2) to these Arrangements. |
| For the purposes of calculating the Threshold Amount, the sterling rate on the date that a financial value of the claim is first established by the Slip Leader shall be used and the rate of exchange shall be the Bank of England spot rate for the purchase of sterling at the time of the deemed conversion. | |
| B. | For all other claims: |
| i) | For Lloyd's syndicates: |
| The leading Lloyd's syndicate and, where required by the applicable Lloyd's Claims Scheme, the second Lloyd's syndicate. |
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CLAIMS
ADMINISTRATION:
RULES AND EXTENT
OF ANY OTHER DELEGATED CLAIMS AUTHORITY:
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| The second Lloyd's Syndicate is …………………………. | |
| ii) | Those companies acting in accordance with the IUA claims agreement practices, excepting those that may have opted out via iv) below. |
| iii) | Those companies that have specifically elected to agree claims in respect of their own participation. |
| iv) | All other subscribing insurers that are not party to the |
| Lloyd’s/IUA claims agreement practices, each in respect of their own participation. | |
| v) | Notwithstanding anything contained in the above to the contrary, any ex gratia payments to be agreed by each (re)insurer for their own participation. |
Willis Limited and (re)insurers agree that any claims hereunder (including any claims related costs/fees) will be notified and administered via the Electronic Claims File (ECF) with any payment(s) processed via CLASS, unless both parties agree to do otherwise.
Where claims or circumstances are not administered via ECF, notification, administration and payment(s) will be electronic.
Where a Lloyd’s syndicate or IUA company is not an agreement party to the claim or circumstance (per CLAIMS AGREEMENT PARTIES A. above) they agree to accept correct ECF sequences for administrative purposes to ensure information is circulated to all subscribing parties.
Willis Limited are authorised to obtain translations of claims documents on behalf of insurers, with Insurers’ associated costs being payable by Insurers as provided for under Expert(s) Fees Collection heading.
For Non Bureaux Insurers only
Claims settlement to be remitted to Willis Limited (unless otherwise specified within the contract) within 7 working days after agreement of claim by Slip Leader and submission of collection to market(s).
None
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EXPERT(S) FEES
COLLECTION:
SETTLEMENT
DUE DATE:
INSTALMENT PREMIUM
PERIOD OF CREDIT:
ADJUSTMENT PREMIUM
PERIOD OF CREDIT:
BUREAUX
ARRANGEMENTS:
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Where the Claims Agreement Parties hereunder have delegated authority to a third party, then all insurers will follow the settlements of the appointed third party.
In respect of Expert(s) Fees payable by (re)insurers for services performed on their behalf, an appointed Service Provider to provide all collection and disbursement services on behalf of (re)insurers in conjunction with, whenever appropriate, Xchanging in respect of any bureau markets. In respect of Expert(s) Fees payable by (re)insurers for services performed on behalf of the (re)insured Willis Limited to collect fees.
30 August 2019
In the absence of a Settlement Due Date, a Premium Payment Warranty or a Premium Payment Clause which automatically cancels the contract if premium payment is not paid by a specified date, the Settlement Due Date will be calculated by granting 60 days (or 90 days in respect of reinsurance) from whichever is the later of either:
| 1) | the inception date of the risk or |
| 2) | the date on which the final Insurer agreement is obtained |
Not applicable unless detailed here.
Not applicable unless detailed here.
Premium Processing Clause
Where the premium is to be paid through Xchanging Ins-sure Services (XIS), payment to Insurers will be deemed to occur on the day that a delinked premium is released for settlement by the Appointed Broker or in the case of non-delinked premiums, on the day that the error-free Premium Advice Note (PAN) is submitted to XIS.
Where premiums are to be paid by instalments under the Deferred Account Scheme, and the Appointed Broker does not receive the premium in time to comply with the agreed settlement date for the second or subsequent instalment, the Appointed Broker, if electing to suspend the automatic debiting of the relevant deferred instalment, shall advise the Slip Leader in writing and instruct XIS accordingly.
XIS shall then notify Insurers.
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Payment to any entity within the same group of companies as the Appointed Broker will be deemed to be payment to the Appointed Broker.
Nothing in this clause shall be construed to override the terms of any Premium Payment Warranty or Clause or any Termination or Cancellation provision contained in this contract. Furthermore, any amendment to the Settlement Due Date of a premium instalment as a result of the operation of this Premium Processing Clause shall not amend the date that such instalment is deemed to be due for the purposes of such Premium Payment Warranty or Clause or Termination or Cancellation provision unless Insurers expressly agree otherwise.
Appointed Broker : Willis Limited
LSW3003
14/12/09
Xchanging Ins-sure Services (XIS) are authorised to sign premium, de-linked or otherwise, from individual insureds, cedants, territories, insurers or class of business sections separately as and when received from Willis Limited.
In the event that any applicable premium payment warranty, clause or condition has a different due date to the settlement due date, XIS are hereby authorised to amend the settlement due date to match the premium payment warranty, clause or condition due date. This agreement shall be binding on all bureau insurers.
Insurers hereby agree that any premium payable in instalments under this contract will be processed as delinked additional premium entries other than when submitted under the Deferred Account Scheme.
Where any Settlement Due Date (SDD), Premium Payment Warranty (PPW) or Premium Payment Condition (PPC) due date falls on a weekend or public holiday, presentation to XIS or insurers hereon or release for settlement of a delinked premium as applicable on the next working day will be deemed to be in compliance with such SDD, PPW or PPC.
Where Premium Transfers have been completed any additional/return premiums due thereafter will be paid/deducted from the last Year of Account unless advised differently by (re)insurers.
Agreed to accept currency rate of exchange adjustments as presented to XIS bearing evidence of Insured payment / settlement.
For signing purposes XIS agree to accept netted down premiums (being both gross and net) as presented by Willis Limited.
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All premium related transactions shall be settled in the same currency as indicated in this contract and all claims related transactions, including fees and expenses shall be paid in any appropriate currency as requested by the Insured, expert or adjuster, providing:
Where the currency(ies) is not a currency nominated by Lloyd’s, IUA or XIS as a settlement currency, or where one or more XIS
Underwriter does not transact business in a nominated XIS settlement currency or where all or part of the Lloyd's premium is to be settled in US Dollars (USD) for US or Canadian Trust Fund purposes, then all transactions will be converted into Pounds Sterling (GBP), US Dollars (USD) or Euro (EUR), as specified by Willis Limited, at the applicable rate of exchange which shall be determined by:
| a) | the date of receipt by Willis Limited for premiums |
| b) | the date of payment to the client for claims and return premiums or as agreed by the Slip Leader. |
XIS are authorised to:
This does not supersede priority payments nor special payment terms nor specifically agreed payment and currency terms stated in this contract.
Agreed to accept currency rate of exchange adjustments as presented to insurers bearing evidence of Insured payment / settlement.
All premium related transactions shall be settled in the same currency as indicated in this contract and all claims related transactions, including fees and expenses shall be paid in any appropriate currency as requested by the Insured, expert or adjuster, providing:
Where the currency(ies) is not a currency nominated by insurers or Willis Limited as a settlement currency, then all transactions will be converted into Pounds Sterling (GBP), US Dollars (USD) or Euro (EUR), as specified by Willis Limited, at the applicable rate of exchange which shall be determined by:
| a) | the date of receipt by Willis Limited for premiums |
| b) | the date of payment to the client for claims and return premiums or as agreed by the Slip Leader. |
Settlements in respect of any Canadian interest will be converted, where necessary, into US Dollars (USD) or Canadian Dollars (CAD) for payment to insurers at the applicable rate of exchange determined by the date of premium receipt by Willis Limited.
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TAX PAYABLE BY
INSURER(S):
COUNTRY OF ORIGIN:
REGULATORY RISK
LOCATION:
OVERSEAS BROKER: STATE OF FILING: US CLASSIFICATION:
ALLOCATION OF
PREMIUM TO
CODING:
REGULATORY CLIENT
CLASSIFICATION:
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5. FISCAL AND REGULATORY
None.
30% FATCA Withholding Tax only to apply in accordance with the provisions of IUA 09-054.
United States of America
United States of America
Direct Insured
Non-Regulated, Independent Procurement
| BB | (Crime) 99% |
7T
1%
Large Risk
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6. BROKER REMUNERATION AND DEDUCTIONS
| FEE PAYABLE BY | |
| CLIENT? | Yes |
| TOTAL BROKERAGE: | Nil |
| OTHER DEDUCTIONS | |
| FROM PREMIUM: | None. |
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Policy Number: (UMR) B080113011P19x
SECURITY DETAILS
REFERENCES
UMR (Unique Market Reference): B080113011P19x
Date contract printed to PDF: 16:48 28 June 2019
Line written on the condition Chubb Global Markets Syn 2488 is a Contract Agreement Party and Claims Agreement Party
| Barbican Managing Agency Limited | ||||||
| Gavin Stanley | ||||||
| Written Line | 8.125 | % | Signed Line | 8.125 | % | |
| Agreed on | 12:34 | 28 June 2019 | ||||
| For and on behalf of: | % of Written Line | Written Line | Signed Line | |||
| Barbican FinPro Consortia 9562 | 100.00 | % | 8.125 | % | 8.125 | % |
| Bound | ||||||
| Lloyd's Stamp: | 9562 | |||||
| Reference: | 026844011900 | |||||
| Description: |
Market Submission - Security Details
Page 1 of 5
28/06/2019 1
Market Submission - Security Details
Page 2 of 5
28/06/2019 1
Premiums and Claims to be settled directly with Pioneer Underwriters Limited with notifications to accounts@pioneeruw.com and UKFIclaims@pioneeruw.com
| QBE European Company Operations | ||||||
| Dominic Checketts | ||||||
| Written Line | 13.125 | % | Signed Line | 13.125 | % | |
| Agreed on | 13:11 | 28 June 2019 | ||||
| For and on behalf of: | Written Line | Signed Line | ||||
| Lloyd's Underwriter Syndicate No. 1886, London, | 13.125 | % | 13.125 | % | ||
| England | ||||||
| Bound | ||||||
| Lloyd's Stamp: | 1886 | |||||
| LORS Code: | L1886 | |||||
| Reference: | 19BA210565NA | |||||
| Description: | pp. MF / BB & 7T |
| Subjectivities |
| Subject to satisfactory receipt, review and acceptance of the agreed primary policy wording. Insurers reserve the right to |
| amend or withdraw all terms and conditions upon receipt or if not received prior to deadline. |
| Deadline | 11 July | 2019 (GMT) | Status | Open |
| Line Conditions | ||||
| QBE to be agreement party for contract changes and claims. | ||||
Market Submission - Security Details
Page 3 of 5
28/06/2019 1
Subjectivities
Subjectivity 14 day extension, receipt, review and acceptance of the underlying, agreed primary policy wording.
Deadline
15 July 2019 (GMT)
Status
Open
Line Conditions
Talbot Syndicate 1183 is an agreement party for Contract Changes, for its proportion only.
Market Submission - Security Details
Page 4 of 5
28/06/2019 1
Lloyd's Underwriter Syndicate No. 2488 CGM, London, England.
Bureau Leader and Lloyd’s Leader
Daisy Laskey
Market Submission - Security Details
Page 5 of 5
28/06/2019 1
IC! MUTUAL INSURANCE COMPANY, a Risk Retention Group
1401 H St. NW
Washington DC 20005
INVESTMENT COMPANY BLANKET BOND
(EXCESS)
ICI MUTUAL INSURANCE COMPANY, a Risk Retention Group
1401 H St. NW
Washington, DC 20005
DECLARATIONS
NOTICE
This policy is issued by your risk retention group. Your risk retention group may not be subject to all of the insurance laws and regulations of your state. State insurance insolvency guaranty funds are not available for your risk retention group.
| A--FIDELITY | $15,000,000 part of $70,000,000 | $ | 150,000,000 |
| B--ON PREMISES | $15,000,000 part of $70,000,000 | $ | 150,000,000 |
| C--INTRANSIT | $15,000,000 part of $70,000,000 | $ | 150,000,000 |
| D--FORGERY OR ALTERATION | $15,000,000 part of $70,000,000 | $ | 150,000,000 |
| E--SECURITIES | $15,000,000 part of $70,000,000 | $ | 150,000,000 |
| F--COUNTERFEIT CURRENCY | $15,000,000 part of $70,000,000 | $ | 150,000,000 |
| I--COMPUTER SYSTEMS | $15,000,000 part of $70,000,000 | $ | 150,000,000 |
| J--CUSTOMER VOICE INITIATED TRANSFERS | $15,000,000 part of $70,000,000 | $ | 150,000,000 |
| K--TELEFACSIMILE TRANSFER FRAUD | $15,000,000 part of $70,000,000 | $ | 150,000,000 |
Plus the applicable deductible of the Primary Bond
Item 4. PRIMARY BOND —National Union Fire Insurance Company of Pittsburgh, PA #01-346-65-10
Item 5. The liability of ICI Mutual Insurance Company, a Risk Retention Group (the “Underwriter”) is subject to the terms of the following Riders attached hereto:
Riders: 1
and of all Riders applicable to this bond issued during the Bond Period.
| By: | — .~. | By: | |
| Authorized Representative | Authorized Representative |
NOTICE
This policy is issued by your risk retention group. Your risk retention group may not be subject to all of the insurance laws and regulations of your state. State insurance insolvency guaranty funds are not available for your risk retention group.
ICI Mutual Insurance Company, a Risk Retention Group (“Underwriter”), in consideration of the required premium, and in reliance on the application and all other information furnished to the Underwriter by the Insured, and subject to and in accordance with the Declarations, General Agreements, Provisions, Conditions and Limitations of this bond, agrees to indemnify the Insured for loss, discovered during the Bond Period, which would otherwise have been paid under the Primary Bond but for the fact that the loss exceeds the limit of liability of such Primary Bond. Coverage under this bond shall follow the terms and conditions of the Primary Bond, except with respect to:
| a. | Any coverage exceptions specified by riders attached to this bond; |
| b. | The deductible amounts and limits of liability as stated in ITEM 3. of the Declarations; and |
| c. | The General Agreements, Provisions, Conditions and Limitations set forth herein. |
GENERAL AGREEMENTS
2
any judgment against the Insured in or settlement of any suit or to recover court costs or attorneys’ fees paid in any such suit, twenty-four (24) months after the date of the final judgment in or settlement of such suit. If any limitation in this bond is prohibited by any applicable law, such limitation shall be deemed to be amended to be equal to the minimum period of limitation permitted by such law.
Notice hereunder shall be given to Manager, Professional Liability Claims, ICI Mutual Insurance Company, 1401 H St. NW, Washington, DC 20005.
PROVISIONS, CONDITIONS AND LIMITATIONS
SECTION 1. DEFINITIONS
| a. | Deductible Amount means the amount stated in ITEM 3. of the Declarations, applicable to each | |
| Single | Loss. In no event shall this Deductible Amount be reduced for any reason, including but not | |
| limited | to, the non-existence, invalidity, insufficiency or uncollectibility of any Underlying Bond(s), | |
| including | the insolvency or dissolution of any Insurer providing coverage under any Underlying | |
| Bond(s) | . | |
| b. | Primary Bond means the bond scheduled in ITEM 4. of the Declarations or any bond that may | |
| replace | or substitute for such bond. | |
| c. | Single Loss means: | |
| (1) | all loss resulting from any one actual or attempted theft committed by one person, or | |
| (2) | all loss caused by any one act (other than a theft or a dishonest or fraudulent act) committed by one person, or | |
| (3) | all loss caused by dishonest or fraudulent acts committed by one person, or | |
| (4) | all expenses incurred with respect to any one audit or examination, or | |
| (5) | all loss caused by any one occurrence or event other than those specified in subsections (1) through (4) above. | |
| d. | Underlying Bond means the Primary Bond and all other insurance coverage referred to in ITEM 4. | |
| of | the Declarations. | |
SECTION 2. SINGLE LOSS LIMIT OF LIABILITY
The Underwriter’s liability for each Single Loss shall not exceed the Limit of Liability as stated in ITEM 3. of the Declarations.
SECTION 3. DISCOVERY
For all purposes under this bond, a loss is discovered, and discovery of a loss occurs, when the Insured
| (1) | becomes aware of facts, or |
| (2) | receives notice of an actual or potential claim by a third party which alleges that the Insured is liable under circumstances, which would cause a reasonable person to assume that loss covered by this bond has been or is likely to be incurred even though the exact amount or details of loss may not be known. |
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SECTION 4. ASSIGNMENT OF RIGHTS
Upon payment to the Insured hereunder for any loss, the Underwriter shall be subrogated to the extent of such payment to all of the Insured’s rights and claims in connection with such loss; provided, however, that the Underwriter shall not be subrogated to any such rights or claims one named Insured under this bond may have against another named Insured under this bond. At the request of the Underwriter, the Insured shall execute all assignments or other documents and take such action as the Underwriter may deem necessary or desirable to secure and perfect such rights and claims, including the execution of documents necessary to enable the Underwriter to bring suit in the name of the Insured.
Assignment of any rights or claims under this bond shall not bind the Underwriter without the Underwriter’s written consent.
SECTION 5. COOPERATION OF INSURED
At the Underwriter’s request and at reasonable times and places designated by the Underwriter the Insured shall:
| a. | submit to examination by the Underwriter and subscribe to the same under oath, and |
| b. | produce for the Underwriter’s examination all pertinent records, and |
| c. | cooperate with the Underwriter in all matters pertaining to the loss. |
The Insured shall execute all papers and render assistance to secure for the Underwriter the rights and causes of action provided for under this bond. The Insured shall do nothing after loss to prejudice such rights or causes of action.
SECTION 6. TERMINATION
The Underwriter may terminate this bond as to any Insured or all Insureds only by written notice to such Insured or Insureds and, if this bond is terminated as to any investment company registered under the Investment Company Act of 1940, to each such investment company terminated thereby and to the Securities and Exchange Commission, Washington, D.C., in all cases not less than sixty (60) days prior to the effective date of termination specified in such notice.
The Insured may terminate this bond only by written notice to the Underwriter not less than sixty (60) days prior to the effective date of the termination specified in such notice. Notwithstanding the foregoing, when the Insured terminates this bond as to any investment company registered under the Investment Company Act of 1940, the effective date of termination shall be not less than sixty (60) days from the date the Underwriter provides written notice of the termination to each such investment company terminated thereby and to the Securities and Exchange Commission, Washington, D.C.
This bond will terminate as to any Insured entity that is not an investment company registered under the Investment Company Act of 1940 immediately and without notice upon (1) the takeover of such Insured’s business by any State or Federal official or agency, or by any receiver or liquidator, or (2) the filing of a petition under any State or Federal statute relative to bankruptcy or reorganization of the Insured, or assignment for the benefit of creditors of the Insured.
4
Premiums are earned until the effective date of termination. The Underwriter shall refund the unearned premium computed at short rates in accordance with the Underwriters standard short rate cancellation tables if this bond is terminated by the Insured or pro rata if this bond is terminated by the Underwriter.
Upon the detection by any Insured that an employee (as defined in the Primary Bond) has committed any dishonest or fraudulent act(s) or theft, the Insured shall immediately remove such employee from a position that may enable such employee to cause the Insured to suffer a loss by any subsequent dishonest or fraudulent act(s) or theft. The Insured, within two (2) business days of such detection, shall notify the Underwriter with full and complete particulars of the detected dishonest or fraudulent act(s) or theft.
For purposes of this section, detection occurs when any partner, officer, or supervisory employee of any Insured, who is not in collusion with such employee, becomes aware that the employee has committed any dishonest or fraudulent act(s) or theft.
This bond shall terminate as to any employee (as defined in the Primary Bond) by written notice from the Underwriter to each Insured and, if such employee is an employee of an Insured investment company registered under the Investment Company Act of 1940, to the Securities and Exchange Commission, in all cases not less than sixty (60) days prior to the effective date of termination specified in such notice.
SECTION 7. CONFORMITY
If any limitation within this bond is prohibited by any law controlling this bond’s construction, such limitation shall be deemed to be amended so as to equal the minimum period of limitation provided by such law.
SECTION 8. CHANGE OR MODIFICATION
This bond may only be modified by written Rider forming a part hereof over the signature of the Underwriter’s authorized representative. Any Rider which modifies the coverage provided by Insuring Agreement A, Fidelity (or the equivalent insuring agreement) of the Primary Bond in a manner which adversely affects the rights of an Insured investment company registered under the Investment Company Act of 1940 shall not become effective until at least sixty (60) days after the Underwriter has given written notice thereof to the Securities and Exchange Commission, Washington, D.C., and to each Insured investment company registered under the Investment Company Act of 1940 affected thereby.
SECTION 9. DEDUCTIBLE AMOUNT; LIMIT OF LIABILITY
The Underwriter shall not be liable under any Insuring Agreement unless the amount of the loss covered thereunder, after deducting the net amount of all reimbursement andJor recovery received by the Insured with respect to such loss (other than from the Primary Bond or from any other bond, suretyship or insurance policy), shall exceed the applicable Deductible Amount; in such case the Underwriter shall be liable only for such excess, subject to the applicable Limit of Liability and other agreements, provisions, conditions and limitations of this bond.
The maximum liability of the Underwriter for any Single Loss covered by any Insuring Agreement under this bond shall be the Limit of Liability applicable to such Insuring Agreement, subject to the
5
applicable Deductible Amount and the other agreements, provisions, conditions and limitations of this bond.
SECTION 10. COMPLIANCE WITH APPLICABLE TRADE AND ECONOMIC SANCTIONS
This bond shall not be deemed to provide any coverage, and the Underwriter shall not be required to pay any loss or provide any benefit hereunder, to the extent that the provision of such coverage, payment of such loss or provision of such benefit would cause the Underwriter to be in violation of any applicable trade or economic sanctions, laws or regulations, including, but not limited to, any sanctions, laws or regulations administered and enforced by the U.S. Department of Treasury Office of Foreign Assets Control (OFAC).
| ICI MUTUAL INSURANCE COMPANY, | ||||
| a Risk Retention Group | ||||
| INVESTMENT COMPANY BLANKET BOND | ||||
| (EXCESS BOND) | ||||
| RIDER NO. 1 | ||||
| INSURED | BOND NUMBER | |||
| Fidelity Equity and High Income Funds | 87153219 | B | ||
| EFFECTIVE DATE | BOND PERIOD | AUTHORIZED REPRES | A | |
| July 1, 2019 | July 1, 2019 to July 1, 2020 | A~J_~~9 ~ - | ||
Most property and casualty insurers, including ICI Mutual Insurance Company, a Risk Retention Group (“ICI Mutual”), are subject to the requirements of the Terrorism Risk Insurance Act of 2002, as amended (the “Act”). The Act establishes a federal insurance backstop under which ICI Mutual and these other insurers may be partially reimbursed by the United States Government for future “insured losses” resulting from certified “acts of terrorism.” (Each of these bolded terms is defined by the Act.) The Act also places certain disclosure and other obligations on ICI Mutual and these other insurers.
Pursuant to the Act, any future losses to ICI Mutual caused by certified “acts of terrorism” may be partially reimbursed by the United Sates government under a formula established by the Act. Under this formula, the United States government would generally reimburse ICI Mutual for the Federal Share of Compensation of ICI Mutual’s “insured losses” in excess of ICI Mutual’s “insurer deductible” until total “insured losses” of all participating insurers reach $100 billion (the “Cap on Annual Liability”). If total “insured losses” of all property and casualty insurers reach the Cap on Annual Liability in any one calendar year, the Act limits U.S. Government reimbursement and provides that the insurers will not be liable under their policies for their portions of such losses that exceed such amount. Amounts otherwise payable under this Bond may be reduced as a result.
This Bond has no express exclusion for “acts of terrorism.” However, coverage under this Bond remains subject to all applicable terms, conditions, and limitations of the Bond (including exclusions) that are permissible under the Act.
The portion of the premium that is attributable to any coverage potentially available under the Bond for “acts of terrorism” is one percent (1 %) and does not include any charges for the portion of loss that may be covered by the U.S. Government under the Act
As used herein, “Federal Share of Compensation” shall mean 85% in calendar year 2015 and shall be reduced by 1% per calendar year until equal to 80%.
Except as above stated, nothing herein shall be held to alter, waive or extend any of the terms of this Bond.
RX00053. 1-00 (07/18)
ICI MUTUAL INSURANCE COMPANY, a Risk Retention Group
1401 H St. NW
Washington DC 20005
INVESTMENT COMPANY BLANKET BOND
(EXCESS)
ICI MUTUAL INSURANCE COMPANY, a Risk Retention Group
1401 H St. NW
Washington, DC 20005
NOTICE
This policy is issued by your risk retention group. Your risk retention group may not be subject to all of the insurance laws and regulations of your state. State insurance insolvency guaranty funds are not available for your risk retention group.
| A--FIDELITY | $15,000,000 part of $70,000,000 | $ | 150,000,000 |
| B--ON PREMISES | $15,000,000 part of $70,000,000 | $ | 150,000,000 |
| C--INTRANSIT | $15,000,000 part of $70,000,000 | $ | 150,000,000 |
| D--FORGERY OR ALTERATION | $15,000,000 part of $70,000,000 | $ | 150,000,000 |
| E--SECURITIES | $15,000,000 part of $70,000,000 | $ | 150,000,000 |
| F--COUNTERFEIT CURRENCY | $15,000,000 part of $70,000,000 | $ | 150,000,000 |
| I--COMPUTER SYSTEMS | $15,000,000 part of $70,000,000 | $ | 150,000,000 |
| J--CUSTOMER VOICE INITIATED TRANSFERS | $15,000,000 part of $70,000,000 | $ | 150,000,000 |
| K--TELEFACSIMILE TRANSFER FRAUD | $15,000,000 part of $70,000,000 | $ | 150,000,000 |
| Plus the applicable deductible of the Primary Bond | ||
| Item 4. | PRIMARY BOND— National Union Fire Insurance Company of Pittsburgh, PA #01-346-65-10 | |
| Item 5. | The liability of ICI Mutual Insurance Company, a Risk Retention Group (the “Underwriter”) is | |
| subject to the terms of the following Riders attached hereto: | ||
| Riders: 1 | ||
| and of all Riders applicable to this bond issued during the Bond Period. | ||
| By:___________ | By: | |
| Authorized Representative | Authorized Representative | |
Bond (10/15)
NOTICE
This policy is issued by your risk retention group. Your risk retention group may not be subject to all of the insurance laws and regulations of your state. State insurance insolvency guaranty funds are not available for your risk retention group.
ICI Mutual Insurance Company, a Risk Retention Group (“Underwriter”), in consideration of the required premium, and in reliance on the application and all other information furnished to the Underwriter by the Insured, and subject to and in accordance with the Declarations, General Agreements, Provisions, Conditions and Limitations of this bond, agrees to indemnify the Insured for loss, discovered during the Bond Period, which would otherwise have been paid under the Primary Bond but for the fact that the loss exceeds the limit of liability of such Primary Bond. Coverage under this bond shall follow the terms and conditions of the Primary Bond, except with respect to:
| a. | Any coverage exceptions specified by riders attached to this bond; |
| b. | The deductible amounts and limits of liability as stated in ITEM 3. of the Declarations; and |
| c. | The General Agreements, Provisions, Conditions and Limitations set forth herein. |
GENERAL AGREEMENTS
2
any judgment against the Insured in or settlement of any suit or to recover court costs or attorneys fees paid in any such suit, twenty-four (24) months after the date of the final judgment in or settlement of such suit. If any limitation in this bond is prohibited by any applicable law, such limitation shall be deemed to be amended to be equal to the minimum period of limitation permitted by such law.
Notice hereunder shall be given to Manager, Professional Liability Claims, ICI Mutual Insurance Company, 1401 H St. NW, Washington, DC 20005.
PROVISIONS, CONDITIONS AND LIMITATIONS
SECTION 1. DEFINITIONS
| a. | Deductible Amount means the amount stated in ITEM 3. of the Declarations, applicable to each | |
| Single | Loss. In no event shall this Deductible Amount be reduced for any reason, including but not | |
| limited | to, the non-existence, invalidity, insufficiency or uncollectibility of any Underlying Bond(s), | |
| including | the insolvency or dissolution of any Insurer providing coverage under any Underlying | |
| Bond(s) | . | |
| b. | Primary Bond means the bond scheduled in ITEM 4. of the Declarations or any bond that may | |
| replace | or substitute for such bond. | |
| c. | Single Loss means: | |
| (1) | all loss resulting from any one actual or attempted theft committed by one person, or | |
| (2) | all loss caused by any one act (other than a theft or a dishonest or fraudulent act) committed by one person, or | |
| (3) | all loss caused by dishonest or fraudulent acts committed by one person, or | |
| (4) | all expenses incurred with respect to any one audit or examination, or | |
| (5) | all loss caused by any one occurrence or event other than those specified in subsections (1) through (4) above. | |
| d. | Underlying Bond means the Primary Bond and all other insurance coverage referred to in ITEM 4. | |
| of | the Declarations. | |
SECTION 2. SINGLE LOSS LIMIT OF LIABILITY
The Underwriter’s liability for each Single Loss shall not exceed the Limit of Liability as stated in ITEM 3. of the Declarations.
SECTION 3. DISCOVERY
For all purposes under this bond, a loss is discovered, and discovery of a loss occurs, when the Insured
| (1) | becomes aware of facts, or |
| (2) | receives notice of an actual or potential claim by a third party which alleges that the Insured is liable under circumstances, which would cause a reasonable person to assume that loss covered by this bond has been or is likely to be incurred even though the exact amount or details of loss may not be known. |
3
SECTION 4. ASSIGNMENT OF RIGHTS
Upon payment to the Insured hereunder for any loss, the Underwriter shall be subrogated to the extent of such payment to all of the Insured’s rights and claims in connection with such loss; provided, however, that the Underwriter shall not be subrogated to any such rights or claims one named Insured under this bond may have against another named Insured under this bond. At the request of the Underwriter, the Insured shall execute all assignments or other documents and take such action as the Underwriter may deem necessary or desirable to secure and perfect such rights and claims, including the execution of documents necessary to enable the Underwriter to bring suit in the name of the Insured.
Assignment of any rights or claims under this bond shall not bind the Underwriter without the Underwriter’s written consent.
SECTION 5. COOPERATION OF INSURED
At the Underwriter’s request and at reasonable times and places designated by the Underwriter the Insured shall:
| a. | submit to examination by the Underwriter and subscribe to the same under oath, and |
| b. | produce for the Underwriter’s examination all pertinent records, and |
| c. | cooperate with the Underwriter in all matters pertaining to the loss. |
The Insured shall execute all papers and render assistance to secure for the Underwriter the rights and causes of action provided for under this bond. The Insured shall do nothing after loss to prejudice such rights or causes of action.
SECTION 6. TERMINATION
The Underwriter may terminate this bond as to any Insured or all Insureds only by written notice to such Insured or Insureds and, if this bond is terminated as to any investment company registered under the Investment Company Act of 1940, to each such investment company terminated thereby and to the Securities and Exchange Commission, Washington, D.C., in all cases not less than sixty (60) days prior to the effective date of termination specified in such notice.
The Insured may terminate this bond only by written notice to the Underwriter not less than sixty (60) days prior to the effective date of the termination specified in such notice. Notwithstanding the foregoing, when the Insured terminates this bond as to any investment company registered under the Investment Company Act of 1940, the effective date of termination shall be not less than sixty (60) days from the date the Underwriter provides written notice of the termination to each such investment company terminated thereby and to the Securities and Exchange Commission, Washington, D.C.
This bond will terminate as to any Insured entity that is not an investment company registered under the Investment Company Act of 1940 immediately and without notice upon (1) the takeover of such Insured’s business by any State or Federal official or agency, or by any receiver or liquidator, or (2) the filing of a petition under any State or Federal statute relative to bankruptcy or reorganization of the Insured, or assignment for the benefit of creditors of the Insured.
4
Premiums are earned until the effective date of termination. The Underwriter shall refund the unearned premium computed at short rates in accordance with the Underwriters standard short rate cancellation tables if this bond is terminated by the Insured or pro rata if this bond is terminated by the Underwriter.
Upon the detection by any Insured that an employee (as defined in the Primary Bond) has committed any dishonest or fraudulent act(s) or theft, the Insured shall immediately remove such employee from a position that may enable such employee to cause the Insured to suffer a loss by any subsequent dishonest or fraudulent act(s) or theft. The Insured, within two (2) business days of such detection, shall notify the Underwriter with full and complete particulars of the detected dishonest or fraudulent act(s) or theft.
For purposes of this section, detection occurs when any partner, officer, or supervisory employee of any Insured, who is not in collusion with such employee, becomes aware that the employee has committed any dishonest or fraudulent act(s) or theft.
This bond shall terminate as to any employee (as defined in the Primary Bond) by written notice from the Underwriter to each Insured and, if such employee is an employee of an Insured investment company registered under the Investment Company Act of 1940, to the Securities and Exchange Commission, in all cases not less than sixty (60) days prior to the effective date of termination specified in such notice.
SECTION 7. CONFORMITY
If any limitation within this bond is prohibited by any law controlling this bond’s construction, such limitation shall be deemed to be amended so as to equal the minimum period of limitation provided by such law.
SECTION 8. CHANGE OR MODIFICATION
This bond may only be modified by written Rider forming a part hereof over the signature of the Underwriter’s authorized representative. Any Rider which modifies the coverage provided by Insuring Agreement A, Fidelity (or the equivalent insuring agreement) of the Primary Bond in a manner which adversely affects the rights of an Insured investment company registered under the Investment Company Act of 1940 shall not become effective until at least sixty (60) days after the Underwriter has given written notice thereof to the Securities and Exchange Commission, Washington, D.C., and to each Insured investment company registered under the Investment Company Act of 1940 affected thereby.
SECTION 9. DEDUCTIBLE AMOUNT; LIMIT OF LIABILITY
The Underwriter shall not be liable under any Insuring Agreement unless the amount of the loss covered thereunder, after deducting the net amount of all reimbursement and/or recovery received by the Insured with respect to such loss (other than from the Primary Bond or from any other bond, suretyship or insurance policy), shall exceed the applicable Deductible Amount; in such case the Underwriter shall be liable only for such excess, subject to the applicable Limit of Liability and other agreements, provisions, conditions and limitations of this bond.
The maximum liability of the Underwriter for any Single Loss covered by any Insuring Agreement under this bond shall be the Limit of Liability applicable to such Insuring Agreement, subject to the
5
applicable Deductible Amount and the other agreements, provisions, conditions and limitations of this bond.
SECTION 10. COMPLIANCE WITH APPLICABLE TRADE AND ECONOMIC SANCTIONS
This bond shall not be deemed to provide any coverage, and the Underwriter shall not be required to pay any loss or provide any benefit hereunder, to the extent that the provision of such coverage, payment of such loss or provision of such benefit would cause the Underwriter to be in violation of any applicable trade or economic sanctions, laws or regulations, including, but not limited to, any sanctions, laws or regulations administered and enforced by the U.S. Department of Treasury Office of Foreign Assets Control (OFAC).
Most property and casualty insurers, including ICI Mutual Insurance Company, a Risk Retention Group (“ICI Mutual”), are subject to the requirements of the Terrorism Risk Insurance Act of 2002, as amended (the “Act”). The Act establishes a federal insurance backstop under which ICI Mutual and these other insurers may be partially reimbursed by the United States Government for future “insured losses” resulting from certified “acts of terrorism.” (Each of these bolded terms is defined by the Act.) The Act also places certain disclosure and other obligations on ICI Mutual and these other insurers.
Pursuant to the Act, any future losses to ICI Mutual caused by certified “acts of terrorism” may be partially reimbursed by the United Sates government under a formula established by the Act. Under this formula, the United States government would generally reimburse ICI Mutual for the Federal Share of Compensation of ICI Mutual’s “insured losses” in excess of ICI Mutual’s “insurer deductible” until total “insured losses” of all participating insurers reach $100 billion (the “Cap on Annual Liability”). If total “insured losses” of all property and casualty insurers reach the Cap on Annual Liability in any one calendar year, the Act limits U.S. Government reimbursement and provides that the insurers will not be liable under their policies for their portions of such losses that exceed such amount. Amounts otherwise payable under this Bond may be reduced as a result.
This Bond has no express exclusion for “acts of terrorism.” However, coverage under this Bond remains subject to all applicable terms, conditions, and limitations of the Bond (including exclusions) that are permissible under the Act.
The portion of the premium that is attributable to any coverage potentially available under the Bond for “acts of terrorism” is one percent (1%) and does not include any charges for the portion of loss that may be covered by the U.S. Government under the Act
As used herein, “Federal Share of Compensation” shall mean 85% in calendar year 2015 and shall be reduced by 1% per calendar year until equal to 80%.
Except as above stated, nothing herein shall be held to alter, waive or extend any of the terms of this Bond.
RX00053. 1-00 (07/18)
AXA XL - Professional Insurance
100 Constitution Plaza, 17th Floor,
Hartford, CT 06103
Phone 860-246-1863, Fax 860-246-1899
May 7, 2020
Mary Coughlin
Willis of MA Inc
Three Copley Place
Suite 300
Boston, MA 02116
Re: Fidelity Equity and High Income Funds
Excess Bond Policy
Dear Mary,
Enclosed, please find the policy for Fidelity Equity and High Income Funds. Thank you for choosing XL Insurance. Please call if you have any questions or concerns.
Sincerely,
Bill Caporale
mk
| Bond Number: ELU162150-19 | XL Specialty Insurance Company | ||
| Renewal of Number: ELU156087-18 | A member of the XL America Companies | ||
| Executive Offices | |||
| 70 Seaview Avenue | |||
| EXCESS BOND | Stamford, CT 06902-6040 | ||
| Telephone 877-953-2636 | |||
| ITEM 1. | Name of Insured (herein called Insured) : Fidelity Equity and High Income Funds | ||
| c/o FMR LLC, 200 Seaport Blvd. | |||
| Principal Address : | Mailzone ZW9C | ||
| Boston, MA 02210 | |||
|
|
|||
| ITEM 2. | Bond Period: from: 12:01 a.m. Standard Time on July 01, 2019 to July 01, 2020 | ||
| ITEM 3. | Aggregate Limit of Liability: | $10,000,000 part Of $70,000,000 | |
| ITEM 4. | Single Loss Limit of Liability : | $10,000,000 part Of $70,000,000 | |
| ITEM 5: | Schedule of Underlying Coverage: | ||
| (A) | Primary Bond: | |
| (i) | Insurer: National Union Fire Insurance Company of Pittsburgh, Pa. | |
| (ii) | Bond or Policy Number: 01-346-65-10 | |
| (iii) | Bond or Policy Period: July 01, 2019 to July 01, 2020 | |
| (iv) | Limit(s) of Liability | |
Single Loss Limit of Liability $15,000,000
Aggregate Limit of Liability $15,000,000
(v) Single Loss Deductible or Retention
| (B) | Excess Bond: | |
| (i) | Insurer: Federal Insurance Company | |
| (ii) | Bond or Policy Number: 82484869 | |
| (iii) | Bond or Policy Period: July 01, 2019 to July 01, 2020 | |
| (iv) | Limit(s) of Liability | |
Single Loss Limit of Liability $10,000,000
Aggregate Limit of Liability $10,000,000
| (C) | Excess Bond: | |
| (i) | Insurer: Everest Reinsurance Company | |
| (ii) | Bond or Policy Number: FL5FD00012-191 | |
| (iii) | Bond or Policy Period: July 01, 2019 to July 01, 2020 | |
| (iv) | Limit(s) of Liability | |
Single Loss Limit of Liability $10,000,000
Aggregate Limit of Liability $10,000,000
| (D) | Excess Bond: | |
| (i) | Insurer: ICI Mutual Insurance Company | |
| (ii) | Bond or Policy Number: 87153119D | |
| (iii) | Bond or Policy Period: July 01, 2019 to July 01, 2020 | |
| (iv) | Limit(s) of Liability | |
Single Loss Limit of Liability $15,000,000
Aggregate Limit of Liability $15,000,000
FB 70 09 10 10
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| (E) | Excess Bond: | |
| (i) | Insurer: Allied World Assurance Company, AG | |
| (ii) | Bond or Policy Number: C014840/009 | |
| (iii) | Bond or Policy Period: July 01, 2019 to July 01, 2020 | |
| (iv) | Limit(s) of Liability | |
| Single Loss Limit of Liability $15,000,000 Aggregate Limit of Liability $15,000,000 | ||
| (F) | Excess Bond: | |
| (i) | Insurer: Travelers Casualty and Surety Company of America | |
| (ii) | Bond or Policy Number: 106547262 | |
| (iii) | Bond or Policy Period: July 01, 2019 to July 01, 2020 | |
| (iv) | Limit(s) of Liability | |
| Single Loss Limit of Liability $10,000,000 Aggregate Limit of Liability $10,000,000 | ||
| (G) | Excess Bond: | |
| (i) | Insurer: Continental Casualty Company | |
| (ii) | Bond or Policy Number: 287042220 | |
| (iii) | Bond or Policy Period: July 01, 2019 to July 01, 2020 | |
| (iv) | Limit(s) of Liability | |
| Single Loss Limit of Liability $10,000,000 Aggregate Limit of Liability $10,000,000 | ||
| (H) | Excess Bond: | |
| (i) | Insurer: AXIS Insurance Company | |
| (ii) | Bond or Policy Number: MNN727586/01/2019 | |
| (iii) | Bond or Policy Period: July 01, 2019 to July 01, 2020 | |
| (iv) | Limit(s) of Liability | |
| Single Loss Limit of Liability $5,000,000 Part Of $15,000,000 Aggregate Limit of Liability $5,000,000 Part Of $15,000,000 | ||
| (I) | Excess Bond: | |
| (i) | Insurer: Starr Indemnity & Liability Company | |
| (ii) | Bond or Policy Number: 1000059071191 | |
| (iii) | Bond or Policy Period: July 01, 2019 to July 01, 2020 | |
| (iv) | Limit(s) of Liability | |
| Single Loss Limit of Liability$10,000,000 Part Of $15,000,000 Aggregate Limit of Liability $10,000,000 Par Of $15,000,000 | ||
| (J) | Excess Bond: | |
| (i) | Insurer: Lloyd's of London | |
| (ii) | Bond or Policy Number: B080113016P19 | |
| (iii) | Bond or Policy Period: July 01, 2019 to July 01, 2020 | |
| (iv) | Limit(s) of Liability | |
| Single Loss Limit of Liability $6,000,000 Part Of $50,000,000 Aggregate Limit of Liability $6,000,000 Part Of $50,000,000 | ||
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| (K) | Excess Bond: | |
| (i) | Insurer: National Casualty Company | |
| (ii) | Bond or Policy Number: XJO1908785 | |
| (iii) | Bond or Policy Period: July 01, 2019 to July 01, 2020 | |
| (iv) | Limit(s) of Liability | |
| Single Loss Limit of Liability $10,000,000 Part Of $50,000,000 Aggregate Limit of Liability $10,000,000 Part Of $50,000,000 | ||
| (L) | Excess Bond: | |
| (i) | Insurer: Twin City Fire Insurance Co | |
| (ii) | Bond or Policy Number: 08 FI 0252161 -19 | |
| (iii) | Bond or Policy Period: July 01, 2019 to July 01, 2020 | |
| (iv) | Limit(s) of Liability | |
| Single Loss Limit of Liability $10,000,000 Part Of $50,000,000 Aggregate Limit of Liability $10,000,000 Part Of $50,000,000 | ||
| (M) | Excess Bond: | |
| (i) | Insurer: US Specialty Insurance Company | |
| (ii) | Bond or Policy Number: 24-MGU-19-A47039 | |
| (iii) | Bond or Policy Period: July 01, 2019 to July 01, 2020 | |
| (iv) | Limit(s) of Liability | |
| Single Loss Limit of Liability $8,000,000 Part Of $50,000,0000 Aggregate Limit of Liability $8,000,000 Par Of $50,000,000 | ||
| (N) | Excess Bond: | |
| (i) | Insurer: American International Reinsurance Company, Ltd. | |
| (ii) | Bond or Policy Number: 33089944 | |
| (iii) | Bond or Policy Period: July 01, 2019 to July 01, 2020 | |
| (iv) | Limit(s) of Liability | |
| Single Loss Limit of Liability $6,000,000 Part Of $50,000,000 Aggregate Limit of Liability $6,000,000 Part Of $50,000,000 | ||
| (O) | Excess Bond: | |
| (i) | Insurer: Ironshore Indemnity Inc. | |
| (ii) | Bond or Policy Number: 003198802 | |
| (iii) | Bond or Policy Period: July 01, 2019 to July 01, 2020 | |
| (iv) | Limit(s) of Liability | |
| Single Loss Limit of Liability $5,000,000 Part Of $50,000,000 Aggregate Limit of Liability $5,000,000 Part Of $50,000,000 | ||
| (P) | Excess Bond: | |
| (i) | Insurer: Federal Insurance Company | |
| (ii) | Bond or Policy Number: 81906761 | |
| (iii) | Bond or Policy Period: July 01, 2019 to July 01, 2020 | |
| (iv) | Limit(s) of Liability | |
| Single Loss Limit of Liability $5,000,000 Part Of $70,000,000 Aggregate Limit of Liability $5,000,000 Part Of $70,000,000 | ||
| (Q) | Excess Bond: | |
| (i) | Insurer: ICI Mutual Insurance Company | |
| (ii) | Bond or Policy Number: 87153219B | |
| (iii) | Bond or Policy Period: July 01, 2019 to July 01, 2020 | |
| (iv) | Limit(s) of Liability | |
| Single Loss Limit of Liability $15,000,000 Part Of $70,000,000 Aggregate Limit of Liability $15,000,000 Part Of $70,000,000 | ||
FB 70 09 10 10
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| (R) | Excess Bond: | |
| (i) | Insurer: Lloyd's of London | |
| (ii) | Bond or Policy Number: B080113017P19 | |
| (iii) | Bond or Policy Period: July 01, 2019 to July 01, 2020 | |
| (iv) | Limit(s) of Liability | |
| Single Loss Limit of Liability $40,000,000 Part Of $70,000,000 Aggregate Limit of Liability $40,000,000 Part Of $70,000,000 | ||
THESE DECLARATIONS AND THE POLICY, WITH THE ENDORSEMENTS, ATTACHMENTS, AND THE APPLICATION SHALL CONSTITUTE THE
ENTIRE AGREEMENT BETWEEN THE INSURER AND THE INSURED RELATING TO THIS INSURANCE.
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IN WITNESS
XL SPECIALTY INSURANCE COMPANY
REGULATORY OFFICE
505 EAGLEVIEW BOULEVARD, SUITE 100
| DEPARTMENT: REGULATORY |
| EXTON, PA 19341-1120 |
| PHONE: 800-688-1840 |
It is hereby agreed and understood that the following In Witness Clause supercedes any and all other In Witness clauses in this policy.
All other provisions remain unchanged.
IN WITNESS WHEREOF, the Insurer has caused this policy to be executed and attested, and, if required by state law, this policy shall not be valid unless countersigned by a duly authorized representative of the Insurer.
|
Joseph Tocco President |
Toni Ann Perkins Secretary |
LAD 400 0915 XLS
NOTICE TO POLICYHOLDERS
U.S. TREASURY DEPARTMENT’S OFFICE OF FOREIGN ASSETS CONTROL
(“OFAC”)
No coverage is provided by this Policyholder Notice nor can it be construed to replace any provisions of your policy. You should read your policy and review your Declarations page for complete information on the coverages you are provided.
This Policyholder Notice provides information concerning possible impact on your insurance coverage due to the impact of U.S. Trade Sanctions1. Please read this Policyholder Notice carefully.
In accordance with the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) regulations, or any other U.S. Trade Sanctions applied by any regulatory body, if it is determined that you or any other insured, or any person or entity claiming the benefits of this insurance has violated U.S. sanctions law, is a Specially Designated National and Blocked Person (“SDN”), or is owned or controlled by an SDN, this insurance will be considered a blocked or frozen contract. When an insurance policy is considered to be such a blocked or frozen contract, neither payments nor premium refunds may be made without authorization from OFAC. Other limitations on the premiums and payments also apply.
1 “U.S Trade Sanctions” may be promulgated by Executive Order, act of Congress, regulations from the
U.S. Departments of State, Treasury, or Commerce, regulations from the State Insurance Departments, etc.
PN CW 05 0519
©2019 X.L. America, Inc. All rights reserved. May not be copied without permission.
Includes copyrighted material of Insurance Services Office, Inc., with its permission.
NOTICE TO POLICYHOLDERS
PRIVACY POLICY
The AXA XL insurance group (the “Companies”), believes personal information that we collect about our customers, potential customers, and proposed insureds (referred to collectively in this Privacy Policy as “customers”) must be treated with the highest degree of confidentiality. For this reason and in compliance with the Title V of the Gramm-Leach-Bliley Act (“GLBA”), we have developed a Privacy Policy that applies to all of our companies. For purposes of our Privacy Policy, the term “personal information” includes all information we obtain about a customer and maintain in a personally identifiable way. In order to assure the confidentiality of the personal information we collect and in order to comply with applicable laws, all individuals with access to personal information about our customers are required to follow this policy.
Our Privacy Promise
Your privacy and the confidentiality of your business records are important to us. Information and the analysis of information is essential to the business of insurance and critical to our ability to provide to you excellent, cost-effective service and products. We understand that gaining and keeping your trust depends upon the security and integrity of our records concerning you. Accordingly, we promise that:
| 1. | We will follow strict standards of security and confidentiality to protect any information you share with us or information that we receive about you; |
| 2. | We will verify and exchange information regarding your credit and financial status only for the purposes of underwriting, policy administration, or risk management and only with reputable references and clearinghouse services; |
| 3. | We will not collect and use information about you and your business other than the minimum amount of information necessary to advise you about and deliver to you excellent service and products and to administer our business; |
| 4. | We will train our employees to handle information about you or your business in a secure and confidential manner and only permit employees authorized to use such information to have access to such information; |
| 5. | We will not disclose information about you or your business to any organization outside the XL Catlin insurance group of Companies or to third party service providers unless we disclose to you our intent to do so or we are required to do so by law; |
| 6. | We will not disclose medical information about you, your employees, or any claimants under any policy of insurance, unless you provide us with written authorization to do so, or unless the disclosure is for any specific business exception provided in the law; |
| 7. | We will attempt, with your help, to keep our records regarding you and your business complete and accurate, and will advise you how and where to access your account information (unless prohibited by law), and will advise you how to correct errors or make changes to that information; and |
| 8. | We will audit and assess our operations, personnel and third party service providers to assure that your privacy is respected. |
Collection and Sources of Information
We collect from a customer or potential customer only the personal information that is necessary for (a) determining eligibility for the product or service sought by the customer, (b) administering the product or service obtained, and (c) advising the customer about our products and services. The information we collect generally comes from the following sources:
PN CW 02 0119
Page 1 of 3
© 2019 X.L. America, Inc. All Rights Reserved.
May not be copied without permission.
NOTICE TO POLICYHOLDERS
Retention and Correction of Personal Information
We retain personal information only as long as required by our business practices and applicable law. If we become aware that an item of personal information may be materially inaccurate, we will make reasonable effort to re-verify its accuracy and correct any error as appropriate.
Storage of Personal Information
We have in place safeguards to protect data and paper files containing personal information.
Sharing/Disclosing of Personal Information
We maintain procedures to assure that we do not share personal information with an unaffiliated third party for marketing purposes unless such sharing is permitted by law. Personal information may be disclosed to an unaffiliated third party for necessary servicing of the product or service or for other normal business transactions as permitted by law.
We do not disclose personal information to an unaffiliated third party for servicing purposes or joint marketing purposes unless a contract containing a confidentiality/non-disclosure provision has been signed by us and the third party. Unless a consumer consents, we do not disclose “consumer credit report” type information obtained from an application or a credit report regarding a customer who applies for a financial product to any unaffiliated third party for the purpose of serving as a factor in establishing a consumer’s eligibility for credit, insurance or employment. “Consumer credit report type information” means such things as net worth, credit worthiness, lifestyle information (piloting, skydiving, etc.) solvency, etc. We also do not disclose to any unaffiliated third party a policy or account number for use in marketing. We may share with our affiliated companies information that relates to our experience and transactions with the customer.
Policy for Personal Information Relating to Nonpublic Personal Health Information
We do not disclose nonpublic personal health information about a customer unless an authorization is obtained from the customer whose nonpublic personal information is sought to be disclosed. However, an authorization shall not be prohibited, restricted or required for the disclosure of certain insurance functions, including, but not limited to, claims administration, claims adjustment and management, detection, investigation or reporting of actual or potential fraud, misrepresentation or criminal activity, underwriting, policy placement or issuance, loss control and/or auditing.
PN CW 02 0119
Page 2 of 3
© 2019 X.L. America, Inc. All Rights Reserved.
May not be copied without permission.
NOTICE TO POLICYHOLDERS
Access to Your Information
Our employees, employees of our affiliated companies, and third party service providers will have access to information we collect about you and your business as is necessary to effect transactions with you. We may also disclose information about you to the following categories of person or entities:
Violation of the Privacy Policy
Any person violating the Privacy Policy will be subject to discipline, up to and including termination.
For more information or to address questions regarding this privacy statement, please contact your broker.
PN CW 02 0119
Page 3 of 3
© 2019 X.L. America, Inc. All Rights Reserved.
May not be copied without permission.
|
NOTICE TO POLICYHOLDERS FRAUD NOTICE |
|
|
Alabama |
Any person who knowingly presents a false or fraudulent claim for payment of a loss or benefit or who knowingly presents false information in an application for insurance is guilty of a crime and may be subject to restitution fines or confinement in prison, or any combination thereof. |
|
Arkansas |
Any person who knowingly presents a false or fraudulent claim for payment of a loss or benefit or knowingly presents false information in an application for insurance is guilty of a crime and may be subject to fines and confinement in prison. |
|
Colorado |
It is unlawful to knowingly provide false, incomplete, or misleading facts or information to an insurance company for the purpose of defrauding or attempting to defraud the company. Penalties may include imprisonment, fines, denial of insurance, and civil damages. Any insurance company or agent of an insurance company who knowingly provides false, incomplete, or misleading facts or information to a policyholder or claimant for the purpose of defrauding or attempting to defraud the policyholder or claimant with regard to a settlement or award payable from insurance proceeds shall be reported to the Colorado Division of Insurance within the Department of Regulatory Agencies. |
|
District of Columbia |
WARNING: It is a crime to provide false or misleading information to an insurer for the purpose of defrauding the insurer or any other person. Penalties include imprisonment and/or fines. In addition, an insurer may deny insurance benefits if false information materially related to a claim was provided by the applicant. |
|
Florida |
Any person who knowingly and with intent to injure, defraud, or deceive any insurer files a statement of claim or an application containing any false, incomplete, or misleading information is guilty of a felony of the third degree. |
|
Kansas |
A "fraudulent insurance act" means an act committed by any person who, knowingly and with intent to defraud, presents, causes to be presented or prepares with knowledge or belief that it will be presented to or by an insurer, purported insurer, broker or any agent thereof, any written, electronic, electronic impulse, facsimile, magnetic, oral, or telephonic communication or statement as part of, or in support of, an application for the issuance of, or the rating of an insurance policy for personal or commercial insurance, or a claim for payment or other benefit pursuant to an insurance policy for commercial or personal insurance which such person knows to contain materially false information concerning any fact material thereto; or conceals, for the purpose of misleading, information concerning any fact material thereto. |
|
Kentucky |
Any person who knowingly and with intent to defraud any insurance company or other person files an application for insurance containing any materially false information or conceals, for the purpose of misleading, information concerning any fact material thereto commits a fraudulent insurance act, which is a crime. |
|
Louisiana |
Any person who knowingly presents a false or fraudulent claim for payment of a loss or benefit or knowingly presents false information in an application for insurance is guilty of a crime and may be subject to fines and confinement in prison. |
|
Maine |
It is a crime to knowingly provide false, incomplete or misleading information to an insurance company for the purpose of defrauding the company. Penalties may include imprisonment, fines, or denial of insurance benefits. |
|
Maryland |
Any person who knowingly or willfully presents a false or fraudulent claim for payment of a loss or benefit or who knowingly or willfully presents false information in an application for insurance is guilty of a crime and may be subject to fines and confinement in prison. |
|
New Jersey |
Any person who includes any false or misleading information on an application for an insurance policy is subject to criminal and civil penalties. |
PN CW 01 0719
Page 1 of 3
© 2019 X.L. America, Inc. All Rights Reserved.
May not be copied without permission.
|
NOTICE TO POLICYHOLDERS |
|
|
New Mexico |
ANY PERSON WHO KNOWINGLY PRESENTS A FALSE OR FRAUDULENT CLAIM FOR PAYMENT OF A LOSS OR BENEFIT OR KNOWINGLY PRESENTS FALSE INFORMATION IN AN APPLICATION FOR INSURANCE IS GUILTY OF A CRIME AND MAY BE SUBJECT TO CIVIL FINES AND CRIMINAL PENALTIES. |
|
New York |
General: All applications for commercial insurance, other than automobile insurance: Any person who knowingly and with intent to defraud any insurance company or other person files an application for insurance or statement of claim containing any materially false information, or conceals for the purpose of misleading, information concerning any fact material thereto, commits a fraudulent insurance act, which is a crime, and shall also be subject to a civil penalty not to exceed five thousand dollars and the stated value of the claim for each such violation. All applications for automobile insurance and all claim forms: Any person who knowingly makes or knowingly assists, abets, solicits or conspires with another to make a false report of the theft, destruction, damage or conversion of any motor vehicle to a law enforcement agency, the department of motor vehicles or an insurance company, commits a fraudulent insurance act, which is a crime, and shall also be subject to a civil penalty not to exceed five thousand dollars and the value of the subject motor vehicle or stated claim for each violation. Fire: Any person who knowingly and with intent to defraud any insurance company or other person files an application for insurance containing any false information, or conceals for the purpose of misleading, information concerning any fact material thereto, commits a fraudulent insurance act, which is a crime. The proposed insured affirms that the foregoing information is true and agrees that these applications shall constitute a part of any policy issued whether attached or not and that any willful concealment or misrepresentation of a material fact or circumstances shall be grounds to rescind the insurance policy. |
|
Ohio |
Any person who, with intent to defraud or knowing that he is facilitating a fraud against an insurer, submits an application or files a claim containing a false or deceptive statement is guilty of insurance fraud. |
|
Oklahoma |
WARNING: Any person who knowingly, and with intent to injure, defraud or deceive any insurer, makes any claim for the proceeds of an insurance policy containing any false, incomplete or misleading information is guilty of a felony. |
WARNING: All Workers Compensation Insurance:
Any person or entity who makes any material false statement or representation, who willfully and knowingly omits or conceals any material information, or who employs any device, scheme, or artifice, or who aids and abets any person for the purpose of:
| 1. | obtaining any benefit or payment, |
| 2. | increasing any claim for benefit or payment, or |
| 3. | obtaining workers' compensation coverage under this act, shall be guilty of a felony punishable pursuant to Section 1663 of Title 21 of the Oklahoma Statutes. |
|
Pennsylvania |
Any person who knowingly and with intent to defraud any insurance company or other person files an application for insurance or statement of claim containing any materially false information or conceals for the purpose of misleading, information concerning any fact material thereto commits a fraudulent insurance act, which is a crime and subjects such person to criminal and civil penalties. Automobile Insurance: Any person who knowingly and with intent to injure or defraud any insurer files an application or claim containing any false, incomplete or misleading information shall, upon conviction, be subject to imprisonment for up to seven years and the payment of a fine of up to $15,000. |
|
PN CW 01 0719 |
Page 2 of 3 © 2019 X.L. America, Inc. All Rights Reserved. May not be copied without permission. |
PN CW 01 0719
Page 3 of 3
© 2019 X.L. America, Inc. All Rights Reserved.
May not be copied without permission.
|
XS 80 07 12 14 |
|
|
Endorsement No.: 1 Named Insured: Fidelity Equity and High Income Funds Policy No.: ELU162150-19 |
Effective: July 01, 2019 12:01 A.M. Standard Time Insurer: XL Specialty Insurance Company |
EXCESS ENDORSEMENT
In consideration of the premium charged:
| (1) | It is understood and agreed that the Limit of Liability for this Policy as set forth in Item 3 of the Declarations is the maximum amount payable, including Defense Expenses, by the Insurer under this Policy. Any provision of the Underlying Insurance indicating any ability or right to any reinstatement of such policy's limit of liability shall be inapplicable to this Policy, including any provision indicating a reinstatement of such policy's limit of liability during any extended discovery or reporting period. The Insurer shall not be liable to the Insureds or any other person or entity claiming through or in the name or right of the Insureds for any loss or other liability based upon, arising out of, directly or indirectly resulting from, in consequence of, or in any way involving the application or enforcement of any such provision of the Underlying Insurance. |
| (2) | It is understood and agreed that the Insurer is under no obligation to renew this Policy upon its expiration. Any provision of the Underlying Insurance indicating any automatic renewal of this Policy shall be inapplicable to this Policy. The Insurer shall not be liable to the Insureds or any other person or entity claiming through or in the name or right of the Insureds for any loss or other liability based upon, arising out of, directly or indirectly resulting from, in consequence of, or in any way involving the application or enforcement of any such provision of the Underlying Insurance. |
All other terms, conditions and limitations of this Policy shall remain unchanged.
XS 80 07 12 14
Page 1 of 1
Excess Bond
The insurer identified on the Declarations Page (the “Underwriter”), in consideration of an agreed premium, and in reliance upon all statements made and information furnished by the Insured to the Underwriter and to the issuers of the Underlying Coverage, and subject to the Declarations, Insuring Agreement(s), General Agreements, Conditions and Limitations and other terms, conditions and limitations hereof, agrees to indemnify the Insured for
INSURING AGREEMENT
EXCESS FOLLOW-FORM COVERAGE
Loss for which, but for the exhaustion of any applicable limit or limits of liability, coverage would have been afforded under the Underlying Coverage in ITEM 5 of the Declarations of this Excess Bond, subject, except as specifically set forth in this Excess Bond, to all of the terms, conditions and limitations of the bond identified in ITEM 5(A) of the Declarations of this Excess Bond; provided, that under no circumstances will this Excess Bond afford coverage broader than the most restrictive coverage provided in any Underlying Coverage.
GENERAL AGREEMENTS
JOINT INSURED
| (A) | If multiple Insureds are covered under this Excess Bond, the first named Insured will act for all Insureds. The Underwriter’s payment to the first named Insured of loss sustained by any Insured will fully release the Underwriter on account of such loss. If the first named Insured ceases to be covered under this Excess Bond, the Insured next named will thereafter be considered the first named Insured. |
| The Underwriter’s liability for loss or losses sustained by all Insureds will not exceed the amount for which the Underwriter would have been liable had such loss or losses been sustained by one Insured. |
CHANGE OF CONTROL – NOTICE
| (B) | When the Insured learns of a change in control, it must give written notice thereof to the Underwriter. As used in this General Agreement, “control” means the power to determine the management or policy of the Insured or of a controlling holding company by virtue of voting stock ownership. A change in ownership of voting stock which results in direct or indirect ownership by a stockholder or an affiliated group of stockholders of fifteen percent (15%) or more of such stock will be presumed to result in a change of control for the purpose of the required notice. Failure to give the required notice will result in termination of coverage for any loss involving a transferee, to be effective upon the date of stock transfer. The entire premium for this Excess Bond will be deemed to have been fully earned as of the effective date of any change in control of the Insured, including but not limited to the taking over of the Insured by a receiver or other liquidator or by State or Federal officials. |
CONDITIONS AND LIMITATIONS
Section 1. LIMIT OF LIABILITY – NON-ACCUMULATION OF LIABILITY
| (A) | The Underwriter’s total liability under this Excess Bond for all loss, regardless of when paid, will not exceed the Aggregate Limit of Liability in ITEM 3 of the Declarations of this Excess Bond. The Aggregate Limit of Liability will be reduced by the amount of any payment made under this Excess Bond. Upon exhaustion of the Aggregate Limit of Liability by such payments, the Underwriter will have no further liability under this Excess Bond for loss, whether or not previously reported to the Underwriter. The Aggregate Limit of Liability will not be increased or reinstated by any recovery made and applied in accordance with Section 5 hereunder or by any portion of any Aggregate Limit of Liability under any previous Bond. |
FB 71 04 10 10
Page 1 of 4
Section 2. EXHAUSTION OF UNDERLYING COVERAGE
| (A) | The Underwriter will be liable to pay loss only if and when the total amount of the limit of liability applicable to such loss under the Underlying Coverage has been exhausted solely by the actual payment of loss under the Underlying Coverage. |
| (B) | In the event that the limit of liability applicable to any loss under the Underlying Coverage has been reduced, but not exhausted, solely by the actual payment of loss under the Underlying Coverage, this Excess Bond will pay covered loss which is excess of the reduced total amount of the limit of liability applicable to such loss under the Underlying Coverage, subject always to the Single Loss Limit of Liability and the remaining Aggregate Limit of Liability of this Excess Bond. |
| (C) | In the event of the exhaustion of the limit of liability applicable to any loss under the Underlying Coverage solely by the actual payment of loss under the Underlying Coverage, this Excess Bond will continue in force as primary insurance in respect of any subsequent loss which, but for such exhaustion, would have been covered under the Underlying Coverage, subject always to the Single Loss Limit of Liability and the remaining Aggregate Limit of Liability of this Excess Bond; provided, always, that this Excess Bond will pay only such loss which is excess over any retention or deductible that would have been applicable under the Underlying Coverage. |
Section 3. MAINTENANCE OF UNDERLYING COVERAGE
| (A) | The Insured must maintain the Underlying Coverage in full force and effect during the Bond Period, except for any reduction or exhaustion of any limit or limits of liability solely by the actual payment of loss. If for any reason the Underlying Coverage shall not have been so maintained, or if the Insured’s recovery under the Underlying Coverage is restricted or unavailable as a result of the insolvency of any issuer of any Underlying Coverage, this Excess Bond will apply excess of the applicable limit or limits of liability of the Underlying Coverage, plus any applicable retention or deductible, as if the Underlying Coverage had been maintained in full force and effect. |
| (B) | The Insured must notify the Underwriter in writing of any change or alteration of or amendment to the Underlying Coverage. This Excess Bond will not follow form of or be subject to any such change, alteration or amendment unless the Underwriter has so agreed by written endorsement to this Excess Bond and has received any additional premium that the Underwriter may require in connection therewith. |
| (C) | No claim, loss or coverage subject to any sublimit of liability (other than a single loss limit of liability) under any Underlying Coverage will be considered covered loss under this Excess Bond, but the |
FB 71 04 10 10
Page 2 of 4
payment of such claim, loss or coverage under the Underlying Coverage will be recognized, to the extent of such payment, as reducing or exhausting the applicable limit or limits of liability of the Underlying Coverage for purposes of determining when coverage under this Excess Bond shall attach.
Section 4. NOTICE/PROOF – LEGAL PROCEEDINGS AGAINST UNDERWRITER
| (A) | The Insured must, within the time and manner prescribed in the bond identified in ITEM 5(A) of the Declarations of this Excess Bond, give the Underwriter notice of any discovery of loss of a kind that may be covered under this Excess Bond, whether or not the amount of such loss is known or expected to be in excess of the applicable limit or limits of liability under the Underlying Coverage and whether or not the Underwriter is or may be liable therefor in whole or in part. Upon the Underwriter’s request, the Insured must give the Underwriter a written statement of such loss and copies of all correspondence between the Insured and the issuer of any Underlying Coverage regarding such loss. |
| Notice given by the Insured to any issuer of Underlying Coverage regarding the discovery of any loss will not constitute notice of such discovery of loss for purposes of this Section 4(A). | |
| (B) | The Insured must, within the time and manner prescribed in the bond identified in ITEM 5(A) of the Declarations of this Excess Bond, file with the Underwriter a proof of loss for any loss of a kind that may be covered under this Excess Bond, whether or not the Underwriter is or may be liable therefor in whole or in part. Upon the Underwriter’s request, the Insured must give the Underwriter a written statement of such loss and copies of any proof of loss provided to any issuer of any Underlying Coverage and of all documents provided to or made available to any such issuer in support thereof. |
| The filing by the Insured of a proof of loss under any Underlying Coverage will not constitute the filing of a proof of loss with the Underwriter for purposes of this Section 4(B). | |
| (C) | Legal proceedings against the Underwriter may not be brought before the expiration of any period of limitation in any Underlying Coverage applicable to the commencement of legal proceedings against any issuer of any Underlying Coverage. |
| (D) | This bond is for the use and benefit only of the Insured named in the Declarations and the Underwriter will not be liable hereunder for loss sustained by anyone other than the Insured. No suit, action or legal proceeding may be brought hereunder by any one other than the named Insured. |
| (E) | Notices and proofs of loss given to the Underwriter under this Excess Bond must be sent by certified mail or the equivalent to the following address: |
| XL Insurance Claims – 100 Constitution Plaza, 13 Floor, Hartford, CT 06103 |
XLprofessionalclaims@xlgroup.com
Section 5. SUBROGATION – ASSIGNMENT – RECOVERY – COOPERATION
| (A) | In the event of payment under this Excess Bond, the Underwriter will be subrogated to the extent of such payment to all of the Insured’s rights of recovery in connection therewith against any person or entity, and the Insured will deliver, if so requested by the Underwriter, an assignment of such of the Insured’s rights, titles and interests and causes of action as it has against any person or entity to the extent of such payment. The Insured must execute all papers and render assistance to secure to the Underwriter the rights and causes of action provided for herein. The Insured may do nothing after discovery of loss to prejudice such rights or causes of action. |
| (B) | Recoveries, whether effected by the Underwriter or by the Insured, will be applied net of the expense of such recovery, first, to the satisfaction of the Insured’s loss which would otherwise have been paid under this Excess Bond but for the fact that such loss was in excess of any applicable limit of liability hereunder, second, to the Underwriter as reimbursement of amounts paid under this Excess Bond in settlement of the Insured’s claim, and third, to the Insured and/or to the issuer or issuers of the Underlying Coverage, in accordance with their respective interests. |
| (C) | Upon the Underwriter’s request and at reasonable times and places designed by the Underwriter, the Insured must submit to examination by the Underwriter and subscribe to the same under oath, |
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produce for the Underwriter’s examination all pertinent records, and cooperate with the Underwriter in all matters pertaining to any loss.
Section 6. TERMINATION OR CANCELLATION
| (A) | This Excess Bond terminates as an entirety upon the Insured’s receipt of a written notice from the Underwriter of its desire to cancel this Excess Bond in accordance with the conditions and limitations of any Underlying Coverage, or immediately upon the Underwriter’s receipt of a written notice from the Insured of its desire to cancel this Excess Bond, or immediately upon the cancellation, termination or nonrenewal of the bond identified in ITEM 5(A) of the Declarations of this Excess Bond. |
| (B) | This Excess Bond terminates as to any employee of the Insured immediately upon the termination of any Underlying Coverage as to such employee or, if any loss shall have become covered under this Excess Bond or this Excess Bond shall have become primary insurance as to any loss, at such time that the bond identified in ITEM 5(A) of the Declarations of this Excess Bond would have terminated as to such employee had it still been in effect. |
Section 7. REPRESENTATION OF INSURED
The Insured represents that the information furnished in the application for this Excess Bond, as well as all information furnished in the Insured’s application or applications for the Underlying Coverage, is complete, true and correct. All such applications constitute part of this Excess Bond. Any intentional misrepresentation, omission, concealment or incorrect statement of a material fact in any of the applications for this Excess Bond or for the Underlying Coverage or otherwise will be grounds for the rescission of this Excess Bond.
In witness whereof, the Underwriter has caused this Excess Bond to be executed on the Declarations page.
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AXA XL - Professional Insurance
100 Constitution Plaza, 17th Floor,
Hartford, CT 06103
Phone 860-246-1863, Fax 860-246-1899
May 7, 2020
Mary Coughlin
Willis of MA Inc
Three Copley Place
Suite 300
Boston, MA 02116
Re: Fidelity Fixed Income and Asset Allocation Funds Excess Bond Policy
Dear Mary,
Enclosed, please find the policy for Fidelity Fixed Income and Asset Allocation Funds. Thank you for choosing XL Insurance. Please call if you have any questions or concerns.
Bill Caporale
mk
| (Q) | Excess | |
| Bond: | ||
| (i) | Insurer: ICI Mutual Insurance Company | |
| (ii) | Bond or Policy Number: 87153119B | |
| (iii) | Bond or Policy Period: July 01, 2019 to July 01, 2020 | |
| (iv) | Limit(s) of Liability | |
| Single Loss Limit of Liability $15,000,000 Part Of $70,000,000 Aggregate Limit of Liability $15,000,000 Part Of $70,000,000 | ||
| (R) | Excess | |
| Bond: | ||
| (i) | Insurer: Lloyd's of London | |
| (ii) | Bond or Policy Number: B080113011P19 | |
| (iii) | Bond or Policy Period: July 01, 2019 to July 01, 2020 | |
| (iv) | Limit(s) of Liability | |
| Single Loss Limit of Liability $40,000,000 Part Of $70,000,000 Aggregate Limit of Liability $40,000,000 Part Of $70,000,000 | ||
THESE DECLARATIONS AND THE POLICY, WITH THE ENDORSEMENTS, ATTACHMENTS, AND THE APPLICATION SHALL CONSTITUTE THE
ENTIRE AGREEMENT BETWEEN THE INSURER AND THE INSURED RELATING TO THIS INSURANCE.
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IN WITNESS
XL SPECIALTY INSURANCE COMPANY
REGULATORY OFFICE
505 EAGLEVIEW BOULEVARD, SUITE 100
| DEPARTMENT: REGULATORY |
| EXTON, PA 19341-1120 |
| PHONE: 800-688-1840 |
It is hereby agreed and understood that the following In Witness Clause supercedes any and all other In Witness clauses in this policy.
All other provisions remain unchanged.
IN WITNESS WHEREOF, the Insurer has caused this policy to be executed and attested, and, if required by state law, this policy shall not be valid unless countersigned by a duly authorized representative of the Insurer.
|
Joseph Tocco President |
Toni Ann Perkins Secretary |
LAD 400 0915 XLS
NOTICE TO POLICYHOLDERS
U.S. TREASURY DEPARTMENT’S OFFICE OF FOREIGN ASSETS CONTROL
(“OFAC”)
No coverage is provided by this Policyholder Notice nor can it be construed to replace any provisions of your policy. You should read your policy and review your Declarations page for complete information on the coverages you are provided.
This Policyholder Notice provides information concerning possible impact on your insurance coverage due to the impact of U.S. Trade Sanctions1. Please read this Policyholder Notice carefully.
In accordance with the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) regulations, or any other U.S. Trade Sanctions applied by any regulatory body, if it is determined that you or any other insured, or any person or entity claiming the benefits of this insurance has violated U.S. sanctions law, is a Specially Designated National and Blocked Person (“SDN”), or is owned or controlled by an SDN, this insurance will be considered a blocked or frozen contract. When an insurance policy is considered to be such a blocked or frozen contract, neither payments nor premium refunds may be made without authorization from OFAC. Other limitations on the premiums and payments also apply.
1 “U.S Trade Sanctions” may be promulgated by Executive Order, act of Congress, regulations from the
U.S. Departments of State, Treasury, or Commerce, regulations from the State Insurance Departments, etc.
PN CW 05 0519
©2019 X.L. America, Inc. All rights reserved. May not be copied without permission.
Includes copyrighted material of Insurance Services Office, Inc., with its permission.
NOTICE TO POLICYHOLDERS
PRIVACY POLICY
The AXA XL insurance group (the “Companies”), believes personal information that we collect about our customers, potential customers, and proposed insureds (referred to collectively in this Privacy Policy as “customers”) must be treated with the highest degree of confidentiality. For this reason and in compliance with the Title V of the Gramm-Leach-Bliley Act (“GLBA”), we have developed a Privacy Policy that applies to all of our companies. For purposes of our Privacy Policy, the term “personal information” includes all information we obtain about a customer and maintain in a personally identifiable way. In order to assure the confidentiality of the personal information we collect and in order to comply with applicable laws, all individuals with access to personal information about our customers are required to follow this policy.
Our Privacy Promise
Your privacy and the confidentiality of your business records are important to us. Information and the analysis of information is essential to the business of insurance and critical to our ability to provide to you excellent, cost-effective service and products. We understand that gaining and keeping your trust depends upon the security and integrity of our records concerning you. Accordingly, we promise that:
| 1. | We will follow strict standards of security and confidentiality to protect any information you share with us or information that we receive about you; |
| 2. | We will verify and exchange information regarding your credit and financial status only for the purposes of underwriting, policy administration, or risk management and only with reputable references and clearinghouse services; |
| 3. | We will not collect and use information about you and your business other than the minimum amount of information necessary to advise you about and deliver to you excellent service and products and to administer our business; |
| 4. | We will train our employees to handle information about you or your business in a secure and confidential manner and only permit employees authorized to use such information to have access to such information; |
| 5. | We will not disclose information about you or your business to any organization outside the XL Catlin insurance group of Companies or to third party service providers unless we disclose to you our intent to do so or we are required to do so by law; |
| 6. | We will not disclose medical information about you, your employees, or any claimants under any policy of insurance, unless you provide us with written authorization to do so, or unless the disclosure is for any specific business exception provided in the law; |
| 7. | We will attempt, with your help, to keep our records regarding you and your business complete and accurate, and will advise you how and where to access your account information (unless prohibited by law), and will advise you how to correct errors or make changes to that information; and |
| 8. | We will audit and assess our operations, personnel and third party service providers to assure that your privacy is respected. |
Collection and Sources of Information
We collect from a customer or potential customer only the personal information that is necessary for (a) determining eligibility for the product or service sought by the customer, (b) administering the product or service obtained, and (c) advising the customer about our products and services. The information we collect generally comes from the following sources:
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© 2019 X.L. America, Inc. All Rights Reserved.
May not be copied without permission.
NOTICE TO POLICYHOLDERS
Retention and Correction of Personal Information
We retain personal information only as long as required by our business practices and applicable law. If we become aware that an item of personal information may be materially inaccurate, we will make reasonable effort to re-verify its accuracy and correct any error as appropriate.
Storage of Personal Information
We have in place safeguards to protect data and paper files containing personal information.
Sharing/Disclosing of Personal Information
We maintain procedures to assure that we do not share personal information with an unaffiliated third party for marketing purposes unless such sharing is permitted by law. Personal information may be disclosed to an unaffiliated third party for necessary servicing of the product or service or for other normal business transactions as permitted by law.
We do not disclose personal information to an unaffiliated third party for servicing purposes or joint marketing purposes unless a contract containing a confidentiality/non-disclosure provision has been signed by us and the third party. Unless a consumer consents, we do not disclose “consumer credit report” type information obtained from an application or a credit report regarding a customer who applies for a financial product to any unaffiliated third party for the purpose of serving as a factor in establishing a consumer’s eligibility for credit, insurance or employment. “Consumer credit report type information” means such things as net worth, credit worthiness, lifestyle information (piloting, skydiving, etc.) solvency, etc. We also do not disclose to any unaffiliated third party a policy or account number for use in marketing. We may share with our affiliated companies information that relates to our experience and transactions with the customer.
Policy for Personal Information Relating to Nonpublic Personal Health Information
We do not disclose nonpublic personal health information about a customer unless an authorization is obtained from the customer whose nonpublic personal information is sought to be disclosed. However, an authorization shall not be prohibited, restricted or required for the disclosure of certain insurance functions, including, but not limited to, claims administration, claims adjustment and management, detection, investigation or reporting of actual or potential fraud, misrepresentation or criminal activity, underwriting, policy placement or issuance, loss control and/or auditing.
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© 2019 X.L. America, Inc. All Rights Reserved.
May not be copied without permission.
NOTICE TO POLICYHOLDERS
Access to Your Information
Our employees, employees of our affiliated companies, and third party service providers will have access to information we collect about you and your business as is necessary to effect transactions with you. We may also disclose information about you to the following categories of person or entities:
Violation of the Privacy Policy
Any person violating the Privacy Policy will be subject to discipline, up to and including termination.
For more information or to address questions regarding this privacy statement, please contact your broker.
PN CW 02 0119
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© 2019 X.L. America, Inc. All Rights Reserved.
May not be copied without permission.
|
NOTICE TO POLICYHOLDERS FRAUD NOTICE |
|
|
Alabama |
Any person who knowingly presents a false or fraudulent claim for payment of a loss or benefit or who knowingly presents false information in an application for insurance is guilty of a crime and may be subject to restitution fines or confinement in prison, or any combination thereof. |
|
Arkansas |
Any person who knowingly presents a false or fraudulent claim for payment of a loss or benefit or knowingly presents false information in an application for insurance is guilty of a crime and may be subject to fines and confinement in prison. |
|
Colorado |
It is unlawful to knowingly provide false, incomplete, or misleading facts or information to an insurance company for the purpose of defrauding or attempting to defraud the company. Penalties may include imprisonment, fines, denial of insurance, and civil damages. Any insurance company or agent of an insurance company who knowingly provides false, incomplete, or misleading facts or information to a policyholder or claimant for the purpose of defrauding or attempting to defraud the policyholder or claimant with regard to a settlement or award payable from insurance proceeds shall be reported to the Colorado Division of Insurance within the Department of Regulatory Agencies. |
|
District of Columbia |
WARNING: It is a crime to provide false or misleading information to an insurer for the purpose of defrauding the insurer or any other person. Penalties include imprisonment and/or fines. In addition, an insurer may deny insurance benefits if false information materially related to a claim was provided by the applicant. |
|
Florida |
Any person who knowingly and with intent to injure, defraud, or deceive any insurer files a statement of claim or an application containing any false, incomplete, or misleading information is guilty of a felony of the third degree. |
|
Kansas |
A "fraudulent insurance act" means an act committed by any person who, knowingly and with intent to defraud, presents, causes to be presented or prepares with knowledge or belief that it will be presented to or by an insurer, purported insurer, broker or any agent thereof, any written, electronic, electronic impulse, facsimile, magnetic, oral, or telephonic communication or statement as part of, or in support of, an application for the issuance of, or the rating of an insurance policy for personal or commercial insurance, or a claim for payment or other benefit pursuant to an insurance policy for commercial or personal insurance which such person knows to contain materially false information concerning any fact material thereto; or conceals, for the purpose of misleading, information concerning any fact material thereto. |
|
Kentucky |
Any person who knowingly and with intent to defraud any insurance company or other person files an application for insurance containing any materially false information or conceals, for the purpose of misleading, information concerning any fact material thereto commits a fraudulent insurance act, which is a crime. |
|
Louisiana |
Any person who knowingly presents a false or fraudulent claim for payment of a loss or benefit or knowingly presents false information in an application for insurance is guilty of a crime and may be subject to fines and confinement in prison. |
|
Maine |
It is a crime to knowingly provide false, incomplete or misleading information to an insurance company for the purpose of defrauding the company. Penalties may include imprisonment, fines, or denial of insurance benefits. |
|
Maryland |
Any person who knowingly or willfully presents a false or fraudulent claim for payment of a loss or benefit or who knowingly or willfully presents false information in an application for insurance is guilty of a crime and may be subject to fines and confinement in prison. |
|
New Jersey |
Any person who includes any false or misleading information on an application for an insurance policy is subject to criminal and civil penalties. |
PN CW 01 0719
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© 2019 X.L. America, Inc. All Rights Reserved.
May not be copied without permission.
|
NOTICE TO POLICYHOLDERS |
|
|
New Mexico |
ANY PERSON WHO KNOWINGLY PRESENTS A FALSE OR FRAUDULENT CLAIM FOR PAYMENT OF A LOSS OR BENEFIT OR KNOWINGLY PRESENTS FALSE INFORMATION IN AN APPLICATION FOR INSURANCE IS GUILTY OF A CRIME AND MAY BE SUBJECT TO CIVIL FINES AND CRIMINAL PENALTIES. |
|
New York |
General: All applications for commercial insurance, other than automobile insurance: Any person who knowingly and with intent to defraud any insurance company or other person files an application for insurance or statement of claim containing any materially false information, or conceals for the purpose of misleading, information concerning any fact material thereto, commits a fraudulent insurance act, which is a crime, and shall also be subject to a civil penalty not to exceed five thousand dollars and the stated value of the claim for each such violation. All applications for automobile insurance and all claim forms: Any person who knowingly makes or knowingly assists, abets, solicits or conspires with another to make a false report of the theft, destruction, damage or conversion of any motor vehicle to a law enforcement agency, the department of motor vehicles or an insurance company, commits a fraudulent insurance act, which is a crime, and shall also be subject to a civil penalty not to exceed five thousand dollars and the value of the subject motor vehicle or stated claim for each violation. Fire: Any person who knowingly and with intent to defraud any insurance company or other person files an application for insurance containing any false information, or conceals for the purpose of misleading, information concerning any fact material thereto, commits a fraudulent insurance act, which is a crime. The proposed insured affirms that the foregoing information is true and agrees that these applications shall constitute a part of any policy issued whether attached or not and that any willful concealment or misrepresentation of a material fact or circumstances shall be grounds to rescind the insurance policy. |
|
Ohio |
Any person who, with intent to defraud or knowing that he is facilitating a fraud against an insurer, submits an application or files a claim containing a false or deceptive statement is guilty of insurance fraud. |
|
Oklahoma |
WARNING: Any person who knowingly, and with intent to injure, defraud or deceive any insurer, makes any claim for the proceeds of an insurance policy containing any false, incomplete or misleading information is guilty of a felony. |
WARNING: All Workers Compensation Insurance:
Any person or entity who makes any material false statement or representation, who willfully and knowingly omits or conceals any material information, or who employs any device, scheme, or artifice, or who aids and abets any person for the purpose of:
| 1. | obtaining any benefit or payment, |
| 2. | increasing any claim for benefit or payment, or |
| 3. | obtaining workers' compensation coverage under this act, shall be guilty of a felony punishable pursuant to Section 1663 of Title 21 of the Oklahoma Statutes. |
|
Pennsylvania |
Any person who knowingly and with intent to defraud any insurance company or other person files an application for insurance or statement of claim containing any materially false information or conceals for the purpose of misleading, information concerning any fact material thereto commits a fraudulent insurance act, which is a crime and subjects such person to criminal and civil penalties. Automobile Insurance: Any person who knowingly and with intent to injure or defraud any insurer files an application or claim containing any false, incomplete or misleading information shall, upon conviction, be subject to imprisonment for up to seven years and the payment of a fine of up to $15,000. |
|
PN CW 01 0719 |
Page 2 of 3 © 2019 X.L. America, Inc. All Rights Reserved. May not be copied without permission. |
PN CW 01 0719
Page 3 of 3
© 2019 X.L. America, Inc. All Rights Reserved.
May not be copied without permission.
XS 80 07 12 14
|
Endorsement No.: 1 Named Insured: Fidelity Fixed Income and Asset Allocation Funds Policy No.: ELU162155-19 |
Effective: July 01, 2019 12:01 A.M. Standard Time Insurer: Willis of MA Inc |
EXCESS ENDORSEMENT
In consideration of the premium charged:
| (1) | It is understood and agreed that the Limit of Liability for this Policy as set forth in Item 3 of the Declarations is the maximum amount payable, including Defense Expenses, by the Insurer under this Policy. Any provision of the Underlying Insurance indicating any ability or right to any reinstatement of such policy's limit of liability shall be inapplicable to this Policy, including any provision indicating a reinstatement of such policy's limit of liability during any extended discovery or reporting period. The Insurer shall not be liable to the Insureds or any other person or entity claiming through or in the name or right of the Insureds for any loss or other liability based upon, arising out of, directly or indirectly resulting from, in consequence of, or in any way involving the application or enforcement of any such provision of the Underlying Insurance. |
| (2) | It is understood and agreed that the Insurer is under no obligation to renew this Policy upon its expiration. Any provision of the Underlying Insurance indicating any automatic renewal of this Policy shall be inapplicable to this Policy. The Insurer shall not be liable to the Insureds or any other person or entity claiming through or in the name or right of the Insureds for any loss or other liability based upon, arising out of, directly or indirectly resulting from, in consequence of, or in any way involving the application or enforcement of any such provision of the Underlying Insurance. |
All other terms, conditions and limitations of this Policy shall remain unchanged.
XS 80 07 12 14
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Excess Bond
The insurer identified on the Declarations Page (the “Underwriter”), in consideration of an agreed premium, and in reliance upon all statements made and information furnished by the Insured to the Underwriter and to the issuers of the Underlying Coverage, and subject to the Declarations, Insuring Agreement(s), General Agreements, Conditions and Limitations and other terms, conditions and limitations hereof, agrees to indemnify the Insured for
INSURING AGREEMENT
EXCESS FOLLOW-FORM COVERAGE
Loss for which, but for the exhaustion of any applicable limit or limits of liability, coverage would have been afforded under the Underlying Coverage in ITEM 5 of the Declarations of this Excess Bond, subject, except as specifically set forth in this Excess Bond, to all of the terms, conditions and limitations of the bond identified in ITEM 5(A) of the Declarations of this Excess Bond; provided, that under no circumstances will this Excess Bond afford coverage broader than the most restrictive coverage provided in any Underlying Coverage.
GENERAL AGREEMENTS
JOINT INSURED
| (A) | If multiple Insureds are covered under this Excess Bond, the first named Insured will act for all Insureds. The Underwriter’s payment to the first named Insured of loss sustained by any Insured will fully release the Underwriter on account of such loss. If the first named Insured ceases to be covered under this Excess Bond, the Insured next named will thereafter be considered the first named Insured. |
| The Underwriter’s liability for loss or losses sustained by all Insureds will not exceed the amount for which the Underwriter would have been liable had such loss or losses been sustained by one Insured. |
CHANGE OF CONTROL – NOTICE
| (B) | When the Insured learns of a change in control, it must give written notice thereof to the Underwriter. As used in this General Agreement, “control” means the power to determine the management or policy of the Insured or of a controlling holding company by virtue of voting stock ownership. A change in ownership of voting stock which results in direct or indirect ownership by a stockholder or an affiliated group of stockholders of fifteen percent (15%) or more of such stock will be presumed to result in a change of control for the purpose of the required notice. Failure to give the required notice will result in termination of coverage for any loss involving a transferee, to be effective upon the date of stock transfer. The entire premium for this Excess Bond will be deemed to have been fully earned as of the effective date of any change in control of the Insured, including but not limited to the taking over of the Insured by a receiver or other liquidator or by State or Federal officials. |
CONDITIONS AND LIMITATIONS
Section 1. LIMIT OF LIABILITY – NON-ACCUMULATION OF LIABILITY
| (A) | The Underwriter’s total liability under this Excess Bond for all loss, regardless of when paid, will not exceed the Aggregate Limit of Liability in ITEM 3 of the Declarations of this Excess Bond. The Aggregate Limit of Liability will be reduced by the amount of any payment made under this Excess Bond. Upon exhaustion of the Aggregate Limit of Liability by such payments, the Underwriter will have no further liability under this Excess Bond for loss, whether or not previously reported to the Underwriter. The Aggregate Limit of Liability will not be increased or reinstated by any recovery made and applied in accordance with Section 5 hereunder or by any portion of any Aggregate Limit of Liability under any previous Bond. |
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Section 2. EXHAUSTION OF UNDERLYING COVERAGE
| (A) | The Underwriter will be liable to pay loss only if and when the total amount of the limit of liability applicable to such loss under the Underlying Coverage has been exhausted solely by the actual payment of loss under the Underlying Coverage. |
| (B) | In the event that the limit of liability applicable to any loss under the Underlying Coverage has been reduced, but not exhausted, solely by the actual payment of loss under the Underlying Coverage, this Excess Bond will pay covered loss which is excess of the reduced total amount of the limit of liability applicable to such loss under the Underlying Coverage, subject always to the Single Loss Limit of Liability and the remaining Aggregate Limit of Liability of this Excess Bond. |
| (C) | In the event of the exhaustion of the limit of liability applicable to any loss under the Underlying Coverage solely by the actual payment of loss under the Underlying Coverage, this Excess Bond will continue in force as primary insurance in respect of any subsequent loss which, but for such exhaustion, would have been covered under the Underlying Coverage, subject always to the Single Loss Limit of Liability and the remaining Aggregate Limit of Liability of this Excess Bond; provided, always, that this Excess Bond will pay only such loss which is excess over any retention or deductible that would have been applicable under the Underlying Coverage. |
Section 3. MAINTENANCE OF UNDERLYING COVERAGE
| (A) | The Insured must maintain the Underlying Coverage in full force and effect during the Bond Period, except for any reduction or exhaustion of any limit or limits of liability solely by the actual payment of loss. If for any reason the Underlying Coverage shall not have been so maintained, or if the Insured’s recovery under the Underlying Coverage is restricted or unavailable as a result of the insolvency of any issuer of any Underlying Coverage, this Excess Bond will apply excess of the applicable limit or limits of liability of the Underlying Coverage, plus any applicable retention or deductible, as if the Underlying Coverage had been maintained in full force and effect. |
| (B) | The Insured must notify the Underwriter in writing of any change or alteration of or amendment to the Underlying Coverage. This Excess Bond will not follow form of or be subject to any such change, alteration or amendment unless the Underwriter has so agreed by written endorsement to this Excess Bond and has received any additional premium that the Underwriter may require in connection therewith. |
| (C) | No claim, loss or coverage subject to any sublimit of liability (other than a single loss limit of liability) under any Underlying Coverage will be considered covered loss under this Excess Bond, but the |
FB 71 04 10 10
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payment of such claim, loss or coverage under the Underlying Coverage will be recognized, to the extent of such payment, as reducing or exhausting the applicable limit or limits of liability of the Underlying Coverage for purposes of determining when coverage under this Excess Bond shall attach.
Section 4. NOTICE/PROOF – LEGAL PROCEEDINGS AGAINST UNDERWRITER
| (A) | The Insured must, within the time and manner prescribed in the bond identified in ITEM 5(A) of the Declarations of this Excess Bond, give the Underwriter notice of any discovery of loss of a kind that may be covered under this Excess Bond, whether or not the amount of such loss is known or expected to be in excess of the applicable limit or limits of liability under the Underlying Coverage and whether or not the Underwriter is or may be liable therefor in whole or in part. Upon the Underwriter’s request, the Insured must give the Underwriter a written statement of such loss and copies of all correspondence between the Insured and the issuer of any Underlying Coverage regarding such loss. |
| Notice given by the Insured to any issuer of Underlying Coverage regarding the discovery of any loss will not constitute notice of such discovery of loss for purposes of this Section 4(A). | |
| (B) | The Insured must, within the time and manner prescribed in the bond identified in ITEM 5(A) of the Declarations of this Excess Bond, file with the Underwriter a proof of loss for any loss of a kind that may be covered under this Excess Bond, whether or not the Underwriter is or may be liable therefor in whole or in part. Upon the Underwriter’s request, the Insured must give the Underwriter a written statement of such loss and copies of any proof of loss provided to any issuer of any Underlying Coverage and of all documents provided to or made available to any such issuer in support thereof. |
| The filing by the Insured of a proof of loss under any Underlying Coverage will not constitute the filing of a proof of loss with the Underwriter for purposes of this Section 4(B). | |
| (C) | Legal proceedings against the Underwriter may not be brought before the expiration of any period of limitation in any Underlying Coverage applicable to the commencement of legal proceedings against any issuer of any Underlying Coverage. |
| (D) | This bond is for the use and benefit only of the Insured named in the Declarations and the Underwriter will not be liable hereunder for loss sustained by anyone other than the Insured. No suit, action or legal proceeding may be brought hereunder by any one other than the named Insured. |
| (E) | Notices and proofs of loss given to the Underwriter under this Excess Bond must be sent by certified mail or the equivalent to the following address: |
| XL Insurance Claims – 100 Constitution Plaza, 13 Floor, Hartford, CT 06103 |
XLprofessionalclaims@xlgroup.com
Section 5. SUBROGATION – ASSIGNMENT – RECOVERY – COOPERATION
| (A) | In the event of payment under this Excess Bond, the Underwriter will be subrogated to the extent of such payment to all of the Insured’s rights of recovery in connection therewith against any person or entity, and the Insured will deliver, if so requested by the Underwriter, an assignment of such of the Insured’s rights, titles and interests and causes of action as it has against any person or entity to the extent of such payment. The Insured must execute all papers and render assistance to secure to the Underwriter the rights and causes of action provided for herein. The Insured may do nothing after discovery of loss to prejudice such rights or causes of action. |
| (B) | Recoveries, whether effected by the Underwriter or by the Insured, will be applied net of the expense of such recovery, first, to the satisfaction of the Insured’s loss which would otherwise have been paid under this Excess Bond but for the fact that such loss was in excess of any applicable limit of liability hereunder, second, to the Underwriter as reimbursement of amounts paid under this Excess Bond in settlement of the Insured’s claim, and third, to the Insured and/or to the issuer or issuers of the Underlying Coverage, in accordance with their respective interests. |
| (C) | Upon the Underwriter’s request and at reasonable times and places designed by the Underwriter, the Insured must submit to examination by the Underwriter and subscribe to the same under oath, |
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produce for the Underwriter’s examination all pertinent records, and cooperate with the Underwriter in all matters pertaining to any loss.
Section 6. TERMINATION OR CANCELLATION
| (A) | This Excess Bond terminates as an entirety upon the Insured’s receipt of a written notice from the Underwriter of its desire to cancel this Excess Bond in accordance with the conditions and limitations of any Underlying Coverage, or immediately upon the Underwriter’s receipt of a written notice from the Insured of its desire to cancel this Excess Bond, or immediately upon the cancellation, termination or nonrenewal of the bond identified in ITEM 5(A) of the Declarations of this Excess Bond. |
| (B) | This Excess Bond terminates as to any employee of the Insured immediately upon the termination of any Underlying Coverage as to such employee or, if any loss shall have become covered under this Excess Bond or this Excess Bond shall have become primary insurance as to any loss, at such time that the bond identified in ITEM 5(A) of the Declarations of this Excess Bond would have terminated as to such employee had it still been in effect. |
Section 7. REPRESENTATION OF INSURED
The Insured represents that the information furnished in the application for this Excess Bond, as well as all information furnished in the Insured’s application or applications for the Underlying Coverage, is complete, true and correct. All such applications constitute part of this Excess Bond. Any intentional misrepresentation, omission, concealment or incorrect statement of a material fact in any of the applications for this Excess Bond or for the Underlying Coverage or otherwise will be grounds for the rescission of this Excess Bond.
In witness whereof, the Underwriter has caused this Excess Bond to be executed on the Declarations page.
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1 Year Fidelity Limited Term Bo... Chart |
1 Month Fidelity Limited Term Bo... Chart |
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