|
|
|
|
|
|
|
Chubb Group of Insurance Companies |
|
DECLARATIONS |
|
|
|
|
|
FINANCIAL INSTITUTION INVESTMENT |
|
15 Mountain View Road, Warren, New Jersey 07059 |
COMPANY ASSET PROTECTION BOND |
|
NAME OF ASSURED (including its Subsidiaries): |
|
Bond Number: 80911610 |
|
GENERAL AMERICAN INVESTORS COMPANY INC |
|
|
|
|
|
|
|
VIGILANT INSURANCE COMPANY |
|
|
|
|
|
Incorporated under the laws of New York |
100 PARK AVENUE, 35th FLOOR |
|
|
a stock insurance company herein called the COMPANY |
NEW YORK, NY 10017 |
|
|
|
|
|
|
|
|
|
55 Water Street, New York NY 10041-2899 |
|
ITEM 1. |
BOND PERIOD: |
from |
12:01 a.m. on |
June 15, 2009 |
|
|
to |
12:01 a.m. on |
June 15, 2010 |
ITEM 2. |
LIMITS OF LIABILITY--DEDUCTIBLE AMOUNTS: |
|
|
|
|
|
|
|
|
|
The COMPANY, in consideration of payment of the required premium, and in reliance |
|
on the APPLICATION and all other statements made and information furnished to the |
|
COMPANY by the ASSURED, and subject to the DECLARATIONS made a part of this |
|
Bond and to all other terms and conditions of this Bond, agrees to pay the ASSURED |
|
for: |
|
|
|
|
|
|
|
Insuring Clauses |
|
|
|
|
|
|
|
|
Employee |
1 |
. |
Loss resulting directly from Larceny or Embezzlement committed by any |
Employee, alone or in collusion with others. |
|
|
|
|
On Premises |
2 |
. |
Loss of Property resulting directly from robbery, burglary, false pretenses, |
|
|
|
common law or statutory larceny, misplacement, mysterious unexplainable |
|
|
|
disappearance, damage, destruction or removal, from the possession, custody or |
|
|
|
control of the ASSURED, while such Property is lodged or deposited at premises |
|
|
|
located anywhere. |
|
|
In Transit |
3 |
. |
Loss of Property resulting directly from common law or statutory larceny, |
|
|
|
misplacement, mysterious unexplainable disappearance, damage or destruction, |
|
|
|
while the Property is in transit anywhere: |
|
|
|
|
a. |
in an armored motor vehicle, including loading and unloading thereof, |
|
|
|
|
b. |
in the custody of a natural person acting as a messenger of the ASSURED, |
|
|
|
|
or |
|
|
|
|
|
|
c. |
in the custody of a Transportation Company and being transported in a |
|
|
|
|
conveyance other than an armored motor vehicle provided, however, that |
|
|
|
|
covered Property transported in such manner is limited to the following: |
|
|
|
|
|
(1 |
) |
written records, |
|
|
|
|
|
(2 |
) |
securities issued in registered form, which are not endorsed or are |
restrictively endorsed, or |
|
|
|
|
|
(3 |
) |
negotiable instruments not payable to bearer, which are not endorsed |
|
|
|
|
|
|
or are restrictively endorsed. |
|
|
|
|
Coverage under this INSURING CLAUSE begins immediately on the receipt of |
|
|
|
such Property by the natural person or Transportation Company and ends |
|
|
|
immediately on delivery to the premises of the addressee or to any representative |
|
|
|
of the addressee located anywhere. |
|
|
|
|
|
|
Forgery Or Alteration |
4 |
. |
Loss resulting directly from: |
|
|
|
a. |
Forgery on, or fraudulent material alteration of, any bills of exchange, |
|
|
|
|
checks, drafts, acceptances, certificates of deposits, promissory notes, due |
|
|
|
|
bills, money orders, orders upon public treasuries, letters of credit, other |
|
|
|
|
written promises, orders or directions to pay sums certain in money, or |
|
|
|
|
receipts for the withdrawal of Property, or |
|
|
|
|
b. |
transferring, paying or delivering any funds or other Property, or establishing |
|
|
|
|
any credit or giving any value in reliance on any written instructions, advices |
|
|
|
|
or applications directed to the ASSURED authorizing or acknowledging the |
|
|
|
|
transfer, payment, delivery or receipt of funds or other Property, which |
|
|
|
|
instructions, advices or applications fraudulently purport to bear the |
|
|
|
|
handwritten signature of any customer of the ASSURED, or shareholder or |
|
|
|
|
subscriber to shares of an Investment Company, or of any financial |
|
|
|
|
institution or Employee but which instructions, advices or applications either |
|
|
|
|
bear a Forgery or have been fraudulently materially altered without the |
|
|
|
|
knowledge and consent of such customer, shareholder, subscriber, financial |
|
|
|
|
institution or Employee; |
|
|
|
|
excluding, however, under this INSURING CLAUSE any loss covered under |
|
|
|
INSURING CLAUSE 5. of this Bond, whether or not coverage for INSURING |
|
|
|
CLAUSE 5. is provided for in the DECLARATIONS of this Bond. |
|
|
|
|
For the purpose of this INSURING CLAUSE, a mechanically reproduced facsimile |
|
|
|
signature is treated the same as a handwritten signature. |
|
|
Extended Forgery |
5 |
. |
Loss resulting directly from the ASSURED having, in good faith, and in the |
|
|
|
ordinary course of business, for its own account or the account of others in any |
|
|
|
capacity: |
|
|
|
|
|
a. |
acquired, accepted or received, accepted or received, sold or delivered, or |
|
|
|
|
given value, extended credit or assumed liability, in reliance on any original |
|
|
|
|
Securities, documents or other written instruments which prove to: |
|
|
|
|
|
(1) |
bear a Forgery or a fraudulently material alteration, |
|
|
|
|
|
(2) |
have been lost or stolen, or |
|
|
|
|
|
(3) |
be Counterfeit, or |
|
|
|
|
b. |
guaranteed in writing or witnessed any signatures on any transfer, |
|
|
|
|
assignment, bill of sale, power of attorney, guarantee, endorsement or other |
|
|
|
|
obligation upon or in connection with any Securities, documents or other |
|
|
|
|
written instruments. |
|
|
|
|
Actual physical possession, and continued actual physical possession if taken as |
|
|
|
collateral, of such Securities, documents or other written instruments by an |
|
|
|
Employee, Custodian, or a Federal or State chartered deposit institution of the |
|
|
|
ASSURED is a condition precedent to the ASSURED having relied on such items. |
|
|
|
Release or return of such collateral is an acknowledgment by the ASSURED that it |
|
|
|
no longer relies on such collateral. |
|
|
|
|
|
|
|
Insuring Clauses |
|
|
|
|
|
|
|
|
Extended Forgery |
|
|
For the purpose of this INSURING CLAUSE, a mechanically reproduced facsimile |
(continued) |
|
|
signature is treated the same as a handwritten signature. |
|
|
Counterfeit Money |
6 |
. |
Loss resulting directly from the receipt by the ASSURED in good faith of any |
|
|
|
Counterfeit money. |
|
|
Threats To Person |
7 |
. |
Loss resulting directly from surrender of Property away from an office of the |
|
|
|
ASSURED as a result of a threat communicated to the ASSURED to do bodily |
|
|
|
harm to an Employee as defined in Section 1.e. (1), (2) and (5), a Relative or |
|
|
|
invitee of such Employee, or a resident of the household of such Employee, who |
|
|
|
is, or allegedly is, being held captive provided, however, that prior to the surrender |
|
|
|
of such Property: |
|
|
|
|
a. |
the Employee who receives the threat has made a reasonable effort to |
|
|
|
|
notify an officer of the ASSURED who is not involved in such threat, and |
|
|
|
|
b. |
the ASSURED has made a reasonable effort to notify the Federal Bureau of |
|
|
|
|
Investigation and local law enforcement authorities concerning such threat. |
|
|
|
|
It is agreed that for purposes of this INSURING CLAUSE, any Employee of the |
|
|
|
ASSURED, as set forth in the preceding paragraph, shall be deemed to be an |
|
|
|
ASSURED hereunder, but only with respect to the surrender of money, securities |
|
|
|
and other tangible personal property in which such Employee has a legal or |
|
|
|
equitable interest. |
|
|
Computer System |
8 |
. |
Loss resulting directly from fraudulent: |
|
|
|
a. |
entries of data into, or |
|
|
|
|
b. |
changes of data elements or programs within, |
|
|
|
|
a Computer System, provided the fraudulent entry or change causes: |
|
|
|
|
|
(1 |
) |
funds or other property to be transferred, paid or delivered, |
|
|
|
|
|
(2 |
) |
an account of the ASSURED or of its customer to be added, deleted, |
debited or credited, or |
|
|
|
|
|
(3 |
) |
an unauthorized account or a fictitious account to be debited or |
|
|
|
|
|
|
credited. |
|
|
|
|
|
Insuring Clauses |
|
|
|
|
(continued) |
|
|
|
|
|
|
Voice Initiated Funds |
9 |
. |
Loss resulting directly from Voice Initiated Funds Transfer Instruction directed |
Transfer Instruction |
|
|
to the ASSURED authorizing the transfer of dividends or redemption proceeds of |
|
|
|
Investment Company shares from a Customer's account, provided such Voice |
|
|
|
Initiated Funds Transfer Instruction was: |
|
|
|
|
a. |
received at the ASSURED'S offices by those Employees of the ASSURED |
|
|
|
|
specifically authorized to receive the Voice Initiated Funds Transfer |
|
|
|
|
Instruction, |
|
|
|
|
b. |
made by a person purporting to be a Customer, and |
|
|
|
|
c. |
made by said person for the purpose of causing the ASSURED or Customer |
|
|
|
|
to sustain a loss or making an improper personal financial gain for such |
|
|
|
|
person or any other person. |
|
|
|
|
In order for coverage to apply under this INSURING CLAUSE, all Voice Initiated |
|
|
|
Funds Transfer Instructions must be received and processed in accordance with |
|
|
|
the Designated Procedures outlined in the APPLICATION furnished to the |
|
|
|
COMPANY. |
|
|
Uncollectible Items of |
10 |
. |
Loss resulting directly from the ASSURED having credited an account of a |
Deposit |
|
|
customer, shareholder or subscriber on the faith of any Items of Deposit which |
|
|
|
prove to be uncollectible, provided that the crediting of such account causes: |
|
|
|
|
a. |
redemptions or withdrawals to be permitted, |
|
|
|
|
b. |
shares to be issued, or |
|
|
|
|
c. |
dividends to be paid, |
|
from an account of an Investment Company. |
|
|
|
|
In order for coverage to apply under this INSURING CLAUSE, the ASSURED |
|
|
|
must hold Items of Deposit for the minimum number of days stated in the |
|
|
|
APPLICATION before permitting any redemptions or withdrawals, issuing any |
|
|
|
shares or paying any dividends with respect to such Items of Deposit. |
|
|
|
|
Items of Deposit shall not be deemed uncollectible until the ASSURED'S |
|
|
|
standard collection procedures have failed. |
|
|
Audit Expense |
11 |
. |
Expense incurred by the ASSURED for that part of the cost of audits or |
|
|
|
examinations required by any governmental regulatory authority or self-regulatory |
|
|
|
organization to be conducted by such authority, organization or their appointee by |
|
|
|
reason of the discovery of loss sustained by the ASSURED and covered by this |
|
|
|
Bond. |
|
|
|
|
|
General Agreements |
|
|
|
|
|
|
Additional Companies |
A. |
If more than one corporation, or Investment Company, or any combination of |
Included As Assured |
|
them is included as the ASSURED herein: |
|
|
(1 |
) |
The total liability of the COMPANY under this Bond for loss or losses |
|
|
|
|
sustained by any one or more or all of them shall not exceed the limit for |
|
|
|
|
which the COMPANY would be liable under this Bond if all such loss were |
|
|
|
|
sustained by any one of them. |
|
|
|
(2 |
) |
Only the first named ASSURED shall be deemed to be the sole agent of the |
|
|
|
|
others for all purposes under this Bond, including but not limited to the giving |
|
|
|
|
or receiving of any notice or proof required to be given and for the purpose of |
|
|
|
|
effecting or accepting any amendments to or termination of this Bond. The |
|
|
|
|
COMPANY shall furnish each Investment Company with a copy of the |
|
|
|
|
Bond and with any amendment thereto, together with a copy of each formal |
|
|
|
|
filing of claim by any other named ASSURED and notification of the terms of |
|
|
|
|
the settlement of each such claim prior to the execution of such settlement. |
|
|
|
(3 |
) |
The COMPANY shall not be responsible for the proper application of any |
|
|
|
|
payment made hereunder to the first named ASSURED. |
|
|
|
(4 |
) |
Knowledge possessed or discovery made by any partner, director, trustee, |
|
|
|
|
officer or supervisory employee of any ASSURED shall constitute knowledge |
|
|
|
|
or discovery by all the ASSUREDS for the purposes of this Bond. |
|
|
|
(5 |
) |
If the first named ASSURED ceases for any reason to be covered under this |
|
|
|
|
Bond, then the ASSURED next named on the APPLICATION shall thereafter |
|
|
|
|
be considered as the first named ASSURED for the purposes of this Bond. |
|
|
Representation Made By |
B. |
The ASSURED represents that all information it has furnished in the |
Assured |
|
APPLICATION for this Bond or otherwise is complete, true and correct. Such |
|
|
APPLICATION and other information constitute part of this Bond. |
|
|
|
The ASSURED must promptly notify the COMPANY of any change in any fact or |
|
|
circumstance which materially affects the risk assumed by the COMPANY under |
|
|
this Bond. |
|
|
|
Any intentional misrepresentation, omission, concealment or incorrect statement of |
|
|
a material fact, in the APPLICATION or otherwise, shall be grounds for recision of |
|
|
this Bond. |
|
|
|
|
|
General Agreements |
|
|
|
|
(continued) |
|
|
|
|
|
Additional Offices Or |
C. |
If the ASSURED, other than an Investment Company, while this Bond is in force, |
Employees - Consolidation, |
|
merges or consolidates with, or purchases or acquires assets or liabilities of |
Merger Or Purchase Or |
|
another institution, the ASSURED shall not have the coverage afforded under this |
Acquisition Of Assets Or |
|
Bond for loss which has: |
Liabilities - Notice To |
|
(1 |
) |
occurred or will occur on premises, or |
Company |
|
|
|
|
|
|
(2 |
) |
been caused or will be caused by an employee, or |
|
|
(3 |
) |
arisen or will arise out of the assets or liabilities, |
|
|
of such institution, unless the ASSURED: |
|
|
a. |
|
gives the COMPANY written notice of the proposed consolidation, merger or |
|
|
|
|
purchase or acquisition of assets or liabilities prior to the proposed effective |
|
|
|
|
date of such action, and |
|
|
b. |
|
obtains the written consent of the COMPANY to extend some or all of the |
|
|
|
|
coverage provided by this Bond to such additional exposure, and |
|
|
c. |
|
on obtaining such consent, pays to the COMPANY an additional premium. |
|
|
Change Of Control - |
D. |
When the ASSURED learns of a change in control (other than in an Investment |
Notice To Company |
|
Company), as set forth in Section 2(a) (9) of the Investment Company Act of |
|
|
1940, |
|
the ASSURED shall within sixty (60) days give written notice to the |
|
|
COMPANY setting forth: |
|
|
(1 |
) |
the names of the transferors and transferees (or the names of the beneficial |
|
|
|
|
owners if the voting securities are registered in another name), |
|
|
(2 |
) |
the total number of voting securities owned by the transferors and the |
|
|
|
|
transferees (or the beneficial owners), both immediately before and after the |
|
|
|
|
transfer, and |
|
|
(3 |
) |
the total number of outstanding voting securities. |
|
|
Failure to give the required notice shall result in termination of coverage for any |
|
|
loss involving a transferee, to be effective on the date of such change in control. |
|
|
Court Costs And |
E. |
The COMPANY will indemnify the ASSURED for court costs and reasonable |
Attorneys’ Fees |
|
attorneys' fees incurred and paid by the ASSURED in defense, whether or not |
|
|
successful, whether or not fully litigated on the merits and whether or not settled, |
|
|
of any claim, suit or legal proceeding with respect to which the ASSURED would |
|
|
be entitled to recovery under this Bond. However, with respect to INSURING |
|
|
CLAUSE 1., this Section shall only apply in the event that: |
|
|
(1 |
) |
an Employee admits to being guilty of Larceny or Embezzlement, |
|
|
(2 |
) |
an Employee is adjudicated to be guilty of Larceny or Embezzlement, or |
|
|
|
General Agreements |
|
|
|
|
Court Costs And |
(3) |
in the absence of 1 or 2 above, an arbitration panel agrees, after a review of |
Attorneys’ Fees |
|
an agreed statement of facts between the COMPANY and the ASSURED, |
(continued) |
|
that an Employee would be found guilty of Larceny or Embezzlement if |
such Employee were prosecuted. |
|
|
The ASSURED shall promptly give notice to the COMPANY of any such suit or |
|
legal proceeding and at the request of the COMPANY shall furnish copies of all |
|
pleadings and pertinent papers to the COMPANY. The COMPANY may, at its |
|
sole option, elect to conduct the defense of all or part of such legal proceeding. |
|
The defense by the COMPANY shall be in the name of the ASSURED through |
|
attorneys selected by the COMPANY. The ASSURED shall provide all reasonable |
|
information and assistance as required by the COMPANY for such defense. |
|
|
If the COMPANY declines to defend the ASSURED, no settlement without the |
|
prior written consent of the COMPANY nor judgment against the ASSURED shall |
|
determine the existence, extent or amount of coverage under this Bond. |
|
|
If the amount demanded in any such suit or legal proceeding is within the |
|
DEDUCTIBLE AMOUNT, if any, the COMPANY shall have no liability for court |
|
costs and attorney's fees incurred in defending all or part of such suit or legal |
|
proceeding. |
|
|
If the amount demanded in any such suit or legal proceeding is in excess of the |
|
LIMIT OF LIABILITY stated in ITEM 2. of the DECLARATIONS for the applicable |
|
INSURING CLAUSE, the COMPANY'S liability for court costs and attorney's fees |
|
incurred in defending all or part of such suit or legal proceedings is limited to the |
|
proportion of such court costs and attorney's fees incurred that the LIMIT OF |
|
LIABILITY stated in ITEM 2. of the DECLARATIONS for the applicable INSURING |
|
CLAUSE bears to the total of the amount demanded in such suit or legal |
|
proceeding. |
|
|
If the amount demanded is any such suit or legal proceeding is in excess of the |
|
DEDUCTIBLE AMOUNT, if any, but within the LIMIT OF LIABILITY stated in ITEM |
|
2. |
of the DECLARATIONS for the applicable INSURING CLAUSE, the |
|
COMPANY'S liability for court costs and attorney's fees incurred in defending all or |
|
part of such suit or legal proceedings shall be limited to the proportion of such |
|
court costs or attorney's fees that the amount demanded that would be payable |
|
under this Bond after application of the DEDUCTIBLE AMOUNT, bears to the total |
|
amount demanded. |
|
|
Amounts paid by the COMPANY for court costs and attorneys' fees shall be in |
|
addition to the LIMIT OF LIABILITY stated in ITEM 2. of the DECLARATIONS. |
|
|
|
|
|
|
|
Conditions And |
|
|
|
|
|
|
Limitations |
|
|
|
|
|
|
|
|
Definitions |
1 |
. |
As used in this Bond: |
|
|
|
a. |
Computer System means a computer and all input, output, processing, |
|
|
|
|
storage, off-line media libraries, and communication facilities which are |
|
|
|
|
connected to the computer and which are under the control and supervision |
|
|
|
|
of the operating system(s) or application(s) software used by the ASSURED. |
|
|
|
|
b. |
Counterfeit means an imitation of an actual valid original which is intended |
|
|
|
|
to deceive and be taken as the original. |
|
|
|
|
c. |
Custodian means the institution designated by an Investment Company to |
|
|
|
|
maintain possession and control of its assets. |
|
|
|
|
d. |
Customer means an individual, corporate, partnership, trust customer, |
|
|
|
|
shareholder or subscriber of an Investment Company which has a written |
|
|
|
|
agreement with the ASSURED for Voice Initiated Funds Transfer |
|
|
|
|
Instruction. |
|
|
|
|
e. |
Employee means: |
|
|
|
|
|
(1 |
) |
an officer of the ASSURED, |
|
|
|
|
|
(2 |
) |
a natural person while in the regular service of the ASSURED at any of |
|
|
|
|
|
|
the ASSURED'S premises and compensated directly by the ASSURED |
|
|
|
|
|
|
through its payroll system and subject to the United States Internal |
|
|
|
|
|
|
Revenue Service Form W-2 or equivalent income reporting plans of |
|
|
|
|
|
|
other countries, and whom the ASSURED has the right to control and |
|
|
|
|
|
|
direct both as to the result to be accomplished and details and means |
|
|
|
|
|
|
by which such result is accomplished in the performance of such |
|
|
|
|
|
|
service, |
|
|
|
|
|
(3 |
) |
a guest student pursuing studies or performing duties in any of the |
ASSURED'S premises, |
|
|
|
|
|
(4 |
) |
an attorney retained by the ASSURED and an employee of such |
|
|
|
|
|
|
attorney while either is performing legal services for the ASSURED, |
|
|
|
|
|
(5 |
) |
a natural person provided by an employment contractor to perform |
|
|
|
|
|
|
employee duties for the ASSURED under the ASSURED'S supervision |
|
|
|
|
|
|
at any of the ASSURED'S premises, |
|
|
|
|
|
(6 |
) |
an employee of an institution merged or consolidated with the |
|
|
|
|
|
|
ASSURED prior to the effective date of this Bond, |
|
|
|
|
|
(7 |
) |
a director or trustee of the ASSURED, but only while performing acts |
|
|
|
|
|
|
within the scope of the customary and usual duties of any officer or |
|
|
|
|
|
|
other employee of the ASSURED or while acting as a member of any |
|
|
|
|
|
|
committee duly elected or appointed to examine or audit or have |
|
|
|
|
|
|
custody of or access to Property of the ASSURED, or |
|
|
|
|
|
Conditions And |
|
|
|
|
Limitations |
|
|
|
|
|
|
Definitions |
(8 |
) |
each natural person, partnership or corporation authorized by written |
(continued) |
|
|
agreement with the ASSURED to perform services as electronic data |
|
|
|
processor of checks or other accounting records related to such checks but |
|
|
|
only while such person, partnership or corporation is actually performing |
|
|
|
such services and not: |
|
|
|
|
a. |
creating, preparing, modifying or maintaining the ASSURED'S |
|
|
|
|
computer software or programs, or |
|
|
|
|
b. |
acting as transfer agent or in any other agency capacity in issuing |
|
|
|
|
checks, drafts or securities for the ASSURED, |
|
|
(9 |
) |
any partner, officer or employee of an investment advisor, an underwriter |
|
|
|
(distributor), a transfer agent or shareholder accounting recordkeeper, or an |
|
|
|
administrator, for an Investment Company while performing acts coming |
|
|
|
within the scope of the customary and usual duties of an officer or employee |
|
|
|
of an Investment Company or acting as a member of any committee duly |
|
|
|
elected or appointed to examine, audit or have custody of or access to |
|
|
|
Property of an Investment Company. |
|
|
|
|
The term Employee shall not include any partner, officer or employee of a |
|
|
|
transfer agent, shareholder accounting recordkeeper or administrator: |
|
|
|
|
a. |
which is not an "affiliated person" (as defined in Section 2(a) of the |
|
|
|
|
Investment Company Act of 1940) of an Investment Company or of |
|
|
|
|
the investment advisor or underwriter (distributor) of such Investment |
|
|
|
|
Company, or |
|
|
|
|
b. |
which is a "bank" (as defined in Section 2(a) of the Investment |
Company Act of 1940). |
|
|
|
|
|
This Bond does not afford coverage in favor of the employers of |
|
|
|
|
persons as set forth in e. (4), (5) and (8) above, and upon payment to |
|
|
|
|
the ASSURED by the COMPANY resulting directly from Larceny or |
|
|
|
|
Embezzlement committed by any of the partners, officers or |
|
|
|
|
employees of such employers, whether acting alone or in collusion with |
|
|
|
|
others, an assignment of such of the ASSURED'S rights and causes of |
|
|
|
|
action as it may have against such employers by reason of such acts |
|
|
|
|
so committed shall, to the extent of such payment, be given by the |
|
|
|
|
ASSURED to the COMPANY, and the ASSURED shall execute all |
|
|
|
|
papers necessary to secure to the COMPANY the rights provided for |
|
|
|
|
herein. |
|
|
|
|
Each employer of persons as set forth in e.(4), (5) and (8) above and the |
|
|
|
partners, officers and other employees of such employers shall collectively |
|
|
|
be deemed to be one person for all the purposes of this Bond; excepting, |
|
|
|
however, the fifth paragraph of Section 13. |
|
|
|
|
Independent contractors not specified in e.(4), (5) or (8) above, |
|
|
|
intermediaries, agents, brokers or other representatives of the same general |
|
|
|
character shall not be considered Employees. |
|
|
|
Conditions And |
|
|
Limitations |
|
|
|
|
Definitions |
f. |
Forgery means the signing of the name of another natural person with the |
(continued) |
|
intent to deceive but does not mean a signature which consists in whole or in |
|
|
part of one's own name, with or without authority, in any capacity for any |
|
|
purpose. |
|
|
g. |
Investment Company means any investment company registered under the |
|
|
Investment Company Act of 1940 and listed under the NAME OF ASSURED |
|
|
on the DECLARATIONS. |
|
|
h. |
Items of Deposit means one or more checks or drafts drawn upon a |
|
|
financial institution in the United States of America. |
|
|
i. |
Larceny or Embezzlement means larceny or embezzlement as defined in |
|
|
Section 37 of the Investment Company Act of 1940. |
|
|
j. |
Property means money, revenue and other stamps; securities; including any |
|
|
note, stock, treasury stock, bond, debenture, evidence of indebtedness, |
|
|
certificate of deposit, certificate of interest or participation in any profit- |
|
|
sharing agreement, collateral trust certificate, preorganization certificate or |
|
|
subscription, transferable share, investment contract, voting trust certificate, |
|
|
certificate of deposit for a security, fractional undivided interest in oil, gas, or |
|
|
other mineral rights, any interest or instruments commonly known as a |
|
|
security under the Investment Company Act of 1940, any other certificate of |
|
|
interest or participation in, temporary or interim certificate for, receipt for, |
|
|
guarantee of, or warrant or right to subscribe to or purchase any of the |
|
|
foregoing; bills of exchange; acceptances; checks; withdrawal orders; money |
|
|
orders; travelers' letters of credit; bills of lading; abstracts of title; insurance |
|
|
policies, deeds, mortgages on real estate and/or upon chattels and interests |
|
|
therein; assignments of such policies, deeds or mortgages; other valuable |
|
|
papers, including books of accounts and other records used by the |
|
|
ASSURED in the conduct of its business (but excluding all electronic data |
|
|
processing records); and, all other instruments similar to or in the nature of |
|
|
the foregoing in which the ASSURED acquired an interest at the time of the |
|
|
ASSURED'S consolidation or merger with, or purchase of the principal |
|
|
assets of, a predecessor or which are held by the ASSURED for any |
|
|
purpose or in any capacity and whether so held gratuitously or not and |
|
|
whether or not the ASSURED is liable therefor. |
|
|
k. |
Relative means the spouse of an Employee or partner of the ASSURED |
|
|
and any unmarried child supported wholly by, or living in the home of, such |
|
|
Employee or partner and being related to them by blood, marriage or legal |
|
|
guardianship. |
|
|
l. |
Securities, documents or other written instruments means original |
|
|
(including original counterparts) negotiable or non-negotiable instruments, or |
|
|
assignments thereof, which in and of themselves represent an equitable |
|
|
interest, ownership, or debt and which are in the ordinary course of business |
|
|
transferable by delivery of such instruments with any necessary |
|
|
endorsements or assignments. |
|
|
|
|
|
Conditions And |
|
|
|
|
Limitations |
|
|
|
|
|
|
Definitions |
|
|
m. |
Subsidiary means any organization that, at the inception date of this Bond, |
(continued) |
|
|
|
is named in the APPLICATION or is created during the BOND PERIOD and |
|
|
|
|
of which more than fifty percent (50%) of the outstanding securities or voting |
|
|
|
|
rights representing the present right to vote for election of directors is owned |
|
|
|
|
or controlled by the ASSURED either directly or through one or more of its |
|
|
|
|
subsidiaries. |
|
|
|
|
n. |
Transportation Company means any organization which provides its own |
|
|
|
|
or its leased vehicles for transportation or which provides freight forwarding |
|
|
|
|
or air express services. |
|
|
|
|
o. |
Voice Initiated Election means any election concerning dividend options |
|
|
|
|
available to Investment Company shareholders or subscribers which is |
|
|
|
|
requested by voice over the telephone. |
|
|
|
|
p. |
Voice Initiated Redemption means any redemption of shares issued by an |
|
|
|
|
Investment Company which is requested by voice over the telephone. |
|
|
|
|
q. |
Voice Initiated Funds Transfer Instruction means any Voice Initiated |
|
|
|
|
Redemption or Voice Initiated Election. |
|
|
|
|
For the purposes of these definitions, the singular includes the plural and the |
|
|
|
plural includes the singular, unless otherwise indicated. |
|
|
General Exclusions - |
2 |
. |
This bond does not directly or indirectly cover: |
Applicable to All Insuring |
|
|
a. |
loss not reported to the COMPANY in writing within sixty (60) days after |
Clauses |
|
|
|
termination of this Bond as an entirety; |
|
|
|
|
b. |
loss due to riot or civil commotion outside the United States of America and |
|
|
|
|
Canada, or any loss due to military, naval or usurped power, war or |
|
|
|
|
insurrection. This Section 2.b., however, shall not apply to loss which occurs |
|
|
|
|
in transit in the circumstances recited in INSURING CLAUSE 3., provided |
|
|
|
|
that when such transit was initiated there was no knowledge on the part of |
|
|
|
|
any person acting for the ASSURED of such riot, civil commotion, military, |
|
|
|
|
naval or usurped power, war or insurrection; |
|
|
|
|
c. |
loss resulting from the effects of nuclear fission or fusion or radioactivity; |
|
|
|
|
d. |
loss of potential income including, but not limited to, interest and dividends |
|
|
|
|
not realized by the ASSURED or by any customer of the ASSURED; |
|
|
|
|
e. |
damages of any type for which the ASSURED is legally liable, except |
|
|
|
|
compensatory damages, but not multiples thereof, arising from a loss |
|
|
|
|
covered under this Bond; |
|
|
|
|
f. |
costs, fees and expenses incurred by the ASSURED in establishing the |
|
|
|
|
existence of or amount of loss under this Bond, except to the extent covered |
|
|
|
|
under INSURING CLAUSE 11.; |
|
|
|
|
g. |
loss resulting from indirect or consequential loss of any nature; |
|
|
|
|
|
|
|
|
Conditions And |
|
|
|
|
|
|
|
Limitations |
|
|
|
|
|
|
|
|
General Exclusions - |
|
|
h. |
loss resulting from dishonest acts by any member of the Board of Directors |
Applicable to All Insuring |
|
|
|
or Board of Trustees of the ASSURED who is not an Employee, acting |
Clauses |
|
|
|
alone or in collusion with others; |
(continued) |
|
|
i. |
loss, or that part of any loss, resulting solely from any violation by the |
ASSURED or by any Employee: |
|
|
|
|
(1 |
) |
of any law regulating: |
|
|
|
|
|
|
a. |
the issuance, purchase or sale of securities, |
|
|
|
|
|
|
b. |
securities transactions on security or commodity exchanges or |
|
|
|
|
|
|
|
the over the counter market, |
|
|
|
|
|
|
c. |
investment companies, |
|
|
|
|
|
|
d. |
investment advisors, or |
|
|
|
|
(2 |
) |
of any rule or regulation made pursuant to any such law; or |
|
|
|
j. |
loss of confidential information, material or data; |
|
|
|
k. |
loss resulting from voice requests or instructions received over the |
|
|
|
|
telephone, provided however, this Section 2.k. shall not apply to INSURING |
|
|
|
|
CLAUSE 7. or 9. |
|
|
Specific Exclusions - |
3 |
. |
This Bond does not directly or indirectly cover: |
Applicable To All Insuring |
|
|
a. |
loss caused by an Employee, provided, however, this Section 3.a. shall not |
Clauses Except Insuring |
|
|
|
apply to loss covered under INSURING CLAUSE 2. or 3. which results |
Clause 1. |
|
|
|
directly from misplacement, mysterious unexplainable disappearance, or |
damage or destruction of Property; |
|
|
|
b. |
loss through the surrender of property away from premises of the ASSURED |
|
|
|
|
as a result of a threat: |
|
|
|
|
(1 |
) |
to do bodily harm to any natural person, except loss of Property in |
|
|
|
|
|
|
transit in the custody of any person acting as messenger of the |
|
|
|
|
|
|
ASSURED, provided that when such transit was initiated there was no |
|
|
|
|
|
|
knowledge by the ASSURED of any such threat, and provided further |
|
|
|
|
|
|
that this Section 3.b. shall not apply to INSURING CLAUSE 7., or |
|
|
|
|
(2 |
) |
to do damage to the premises or Property of the ASSURED; |
|
|
|
c. |
loss resulting from payments made or withdrawals from any account |
|
|
|
|
involving erroneous credits to such account; |
|
|
|
d. |
loss involving Items of Deposit which are not finally paid for any reason |
|
|
|
|
provided however, that this Section 3.d. shall not apply to INSURING |
|
|
|
|
CLAUSE 10.; |
|
|
|
e. |
loss of property while in the mail; |
|
|
|
|
|
Conditions And |
|
|
|
|
Limitations |
|
|
|
|
|
|
Specific Exclusions - |
|
|
f. |
loss resulting from the failure for any reason of a financial or depository |
Applicable To All Insuring |
|
|
|
institution, its receiver or other liquidator to pay or deliver funds or other |
Clauses Except Insuring |
|
|
|
Property to the ASSURED provided further that this Section 3.f. shall not |
Clause 1. |
|
|
|
apply to loss of Property resulting directly from robbery, burglary, |
(continued) |
|
|
|
misplacement, mysterious unexplainable disappearance, damage, |
|
|
|
|
destruction or removal from the possession, custody or control of the |
|
|
|
|
ASSURED. |
|
|
|
|
g. |
loss of Property while in the custody of a Transportation Company, |
|
|
|
|
provided however, that this Section 3.g. shall not apply to INSURING |
|
|
|
|
CLAUSE 3.; |
|
|
|
|
h. |
loss resulting from entries or changes made by a natural person with |
|
|
|
|
authorized access to a Computer System who acts in good faith on |
|
|
|
|
instructions, unless such instructions are given to that person by a software |
|
|
|
|
contractor or its partner, officer, or employee authorized by the ASSURED to |
|
|
|
|
design, develop, prepare, supply, service, write or implement programs for |
|
|
|
|
the ASSURED's Computer System; or |
|
|
|
|
i. |
loss resulting directly or indirectly from the input of data into a Computer |
|
|
|
|
System terminal, either on the premises of the customer of the ASSURED |
|
|
|
|
or under the control of such a customer, by a customer or other person who |
|
|
|
|
had authorized access to the customer's authentication mechanism. |
|
|
Specific Exclusions - |
4 |
. |
This bond does not directly or indirectly cover: |
Applicable To All Insuring |
|
|
a. |
loss resulting from the complete or partial non-payment of or default on any |
Clauses Except Insuring |
|
|
|
loan whether such loan was procured in good faith or through trick, artifice, |
Clauses 1., 4., And 5. |
|
|
|
fraud or false pretenses; provided, however, this Section 4.a. shall not apply |
|
|
|
|
to INSURING CLAUSE 8.; |
|
|
|
|
b. |
loss resulting from forgery or any alteration; |
|
|
|
|
c. |
loss involving a counterfeit provided, however, this Section 4.c. shall not |
|
|
|
|
apply to INSURING CLAUSE 5. or 6. |
|
|
Limit Of Liability/Non- |
5 |
. |
At all times prior to termination of this Bond, this Bond shall continue in force for |
Reduction And Non- |
|
|
the limit stated in the applicable sections of ITEM 2. of the DECLARATIONS, |
Accumulation Of Liability |
|
|
notwithstanding any previous loss for which the COMPANY may have paid or be |
|
|
|
liable to pay under this Bond provided, however, that the liability of the COMPANY |
|
|
|
under this Bond with respect to all loss resulting from: |
|
|
|
|
a. |
any one act of burglary, robbery or hold-up, or attempt thereat, in which no |
|
|
|
|
Employee is concerned or implicated, or |
|
|
|
|
b. |
any one unintentional or negligent act on the part of any one person |
|
|
|
|
resulting in damage to or destruction or misplacement of Property, or |
|
|
|
|
c. |
all acts, other than those specified in a. above, of any one person, or |
|
|
|
|
|
Conditions And |
|
|
|
|
Limitations |
|
|
|
|
|
|
Limit Of Liability/Non- |
|
|
d. |
any one casualty or event other than those specified in a., b., or c. above, |
Reduction And Non- |
|
|
shall be deemed to be one loss and shall be limited to the applicable LIMIT OF |
Accumulation Of Liability |
|
|
LIABILITY stated in ITEM 2. of the DECLARATIONS of this Bond irrespective of |
(continued) |
|
|
the total amount of such loss or losses and shall not be cumulative in amounts |
|
|
|
from year to year or from period to period. |
|
|
|
|
All acts, as specified in c. above, of any one person which |
|
|
|
|
i. |
directly or indirectly aid in any way wrongful acts of any other person or |
|
|
|
|
persons, or |
|
|
|
|
ii. |
permit the continuation of wrongful acts of any other person or persons |
|
|
|
|
whether such acts are committed with or without the knowledge of the wrongful |
|
|
|
acts of the person so aided, and whether such acts are committed with or without |
|
|
|
the intent to aid such other person, shall be deemed to be one loss with the |
|
|
|
wrongful acts of all persons so aided. |
|
|
Discovery |
6 |
. |
This Bond applies only to loss first discovered by an officer of the ASSURED |
|
|
|
during the BOND PERIOD. Discovery occurs at the earlier of an officer of the |
|
|
|
ASSURED being aware of: |
|
|
|
|
a. |
facts which may subsequently result in a loss of a type covered by this Bond, |
|
|
|
|
or |
|
|
|
|
b. |
an actual or potential claim in which it is alleged that the ASSURED is liable |
|
|
|
|
to a third party, |
|
|
|
|
regardless of when the act or acts causing or contributing to such loss occurred, |
|
|
|
even though the amount of loss does not exceed the applicable DEDUCTIBLE |
|
|
|
AMOUNT, or the exact amount or details of loss may not then be known. |
|
|
Notice To Company - |
7 |
. |
a. |
The ASSURED shall give the COMPANY notice thereof at the earliest |
Proof - Legal Proceedings |
|
|
|
practicable moment, not to exceed sixty (60) days after discovery of loss, in |
Against Company |
|
|
|
an amount that is in excess of 50% of the applicable DEDUCTIBLE |
|
|
|
|
AMOUNT, as stated in ITEM 2. of the DECLARATIONS. |
|
|
|
|
b. |
The ASSURED shall furnish to the COMPANY proof of loss, duly sworn to, |
|
|
|
|
with full particulars within six (6) months after such discovery. |
|
|
|
|
c. |
Securities listed in a proof of loss shall be identified by certificate or bond |
|
|
|
|
numbers, if issued with them. |
|
|
|
|
d. |
Legal proceedings for the recovery of any loss under this Bond shall not be |
|
|
|
|
brought prior to the expiration of sixty (60) days after the proof of loss is filed |
|
|
|
|
with the COMPANY or after the expiration of twenty-four (24) months from |
|
|
|
|
the discovery of such loss. |
|
|
|
|
e. |
This Bond affords coverage only in favor of the ASSURED. No claim, suit, |
|
|
|
|
action or legal proceedings shall be brought under this Bond by anyone |
|
|
|
|
other than the ASSURED. |
|
|
|
|
|
Conditions And |
|
|
|
|
Limitations |
|
|
|
|
|
|
Notice To Company - |
|
|
f. |
Proof of loss involving Voice Initiated Funds Transfer Instruction shall |
Proof - Legal Proceedings |
|
|
|
include electronic recordings of such instructions. |
Against Company |
|
|
|
|
(continued) |
|
|
|
|
|
|
Deductible Amount |
8 |
. |
The COMPANY shall not be liable under any INSURING CLAUSES of this Bond |
|
|
|
on account of loss unless the amount of such loss, after deducting the net amount |
|
|
|
of all reimbursement and/or recovery obtained or made by the ASSURED, other |
|
|
|
than from any Bond or policy of insurance issued by an insurance company and |
|
|
|
covering such loss, or by the COMPANY on account thereof prior to payment by |
|
|
|
the COMPANY of such loss, shall exceed the DEDUCTIBLE AMOUNT set forth in |
|
|
|
ITEM 3. of the DECLARATIONS, and then for such excess only, but in no event |
|
|
|
for more than the applicable LIMITS OF LIABILITY stated in ITEM 2. of the |
|
|
|
DECLARATIONS. |
|
|
|
|
There shall be no deductible applicable to any loss under INSURING CLAUSE 1. |
|
|
|
sustained by any Investment Company. |
|
|
Valuation |
9 |
. |
BOOKS OF ACCOUNT OR OTHER RECORDS |
|
|
|
The value of any loss of Property consisting of books of account or other records |
|
|
|
used by the ASSURED in the conduct of its business shall be the amount paid by |
|
|
|
the ASSURED for blank books, blank pages, or other materials which replace the |
|
|
|
lost books of account or other records, plus the cost of labor paid by the |
|
|
|
ASSURED for the actual transcription or copying of data to reproduce such books |
|
|
|
of account or other records. |
|
|
|
|
The value of any loss of Property other than books of account or other records |
|
|
|
used by the ASSURED in the conduct of its business, for which a claim is made |
|
|
|
shall be determined by the average market value of such Property on the |
|
|
|
business day immediately preceding discovery of such loss provided, however, |
|
|
|
that the value of any Property replaced by the ASSURED with the consent of the |
|
|
|
COMPANY and prior to the settlement of any claim for such Property shall be the |
actual market value at the time of replacement. |
|
|
|
|
In the case of a loss of interim certificates, warrants, rights or other securities, the |
|
|
|
production of which is necessary to the exercise of subscription, conversion, |
|
|
|
redemption or deposit privileges, the value of them shall be the market value of |
|
|
|
such privileges immediately preceding their expiration if said loss is not discovered |
|
|
|
until after their expiration. If no market price is quoted for such Property or for |
|
|
|
such privileges, the value shall be fixed by agreement between the parties. |
|
|
|
|
OTHER PROPERTY |
|
|
|
|
The value of any loss of Property, other than as stated above, shall be the actual |
|
|
|
cash value or the cost of repairing or replacing such Property with Property of |
|
|
|
like quality and value, whichever is less. |
|
|
|
|
|
Securities Settlement |
10 |
. |
In the event of a loss of securities covered under this Bond, the COMPANY may, |
|
|
|
at its sole discretion, purchase replacement securities, tender the value of the |
|
|
|
securities in money, or issue its indemnity to effect replacement securities. |
|
|
|
|
The indemnity required from the ASSURED under the terms of this Section |
|
|
|
against all loss, cost or expense arising from the replacement of securities by the |
|
|
|
COMPANY'S indemnity shall be: |
|
|
|
|
a. |
for securities having a value less than or equal to the applicable |
|
|
|
|
DEDUCTIBLE AMOUNT - one hundred (100%) percent; |
|
|
|
|
b. |
for securities having a value in excess of the DEDUCTIBLE AMOUNT but |
|
|
|
|
within the applicable LIMIT OF LIABILITY - the percentage that the |
|
|
|
|
DEDUCTIBLE AMOUNT bears to the value of the securities; |
|
|
|
|
c. |
for securities having a value greater than the applicable LIMIT OF LIABILITY |
|
|
|
|
- the percentage that the DEDUCTIBLE AMOUNT and portion in excess of |
|
|
|
|
the applicable LIMIT OF LIABILITY bears to the value of the securities. |
|
|
|
|
The value referred to in Section 10.a., b., and c. is the value in accordance with |
|
|
|
Section 9, VALUATION, regardless of the value of such securities at the time the |
|
|
|
loss under the COMPANY'S indemnity is sustained. |
|
|
|
|
The COMPANY is not required to issue its indemnity for any portion of a loss of |
|
|
|
securities which is not covered by this Bond; however, the COMPANY may do so |
|
|
|
as a courtesy to the ASSURED and at its sole discretion. |
|
|
|
|
The ASSURED shall pay the proportion of the Company's premium charge for the |
|
|
|
Company's indemnity as set forth in Section 10.a., b., and c. No portion of the |
|
|
|
LIMIT OF LIABILITY shall be used as payment of premium for any indemnity |
|
|
|
purchased by the ASSURED to obtain replacement securities. |
|
|
Subrogation - Assignment - 11. |
|
In the event of a payment under this Bond, the COMPANY shall be subrogated to |
Recovery |
|
|
all of the ASSURED'S rights of recovery against any person or entity to the extent |
|
|
|
of such payment. On request, the ASSURED shall deliver to the COMPANY an |
|
|
|
assignment of the ASSURED'S rights, title and interest and causes of action |
|
|
|
against any person or entity to the extent of such payment. |
|
|
|
|
Recoveries, whether effected by the COMPANY or by the ASSURED, shall be |
|
|
|
applied net of the expense of such recovery in the following order: |
|
|
|
|
a. |
first, to the satisfaction of the ASSURED'S loss which would otherwise have |
|
|
|
|
been paid but for the fact that it is in excess of the applicable LIMIT OF |
|
|
|
|
LIABILITY, |
|
|
|
|
b. |
second, to the COMPANY in satisfaction of amounts paid in settlement of |
|
|
|
|
the ASSURED'S claim, |
|
|
|
|
c. |
third, to the ASSURED in satisfaction of the applicable DEDUCTIBLE |
|
|
|
|
AMOUNT, and |
|
|
|
|
|
Conditions And |
|
|
|
|
Limitations |
|
|
|
|
|
|
Subrogation - Assignment - |
|
|
d. |
fourth, to the ASSURED in satisfaction of any loss suffered by the |
Recovery |
|
|
|
ASSURED which was not covered under this Bond. |
(continued) |
|
|
Recovery from reinsurance or indemnity of the COMPANY shall not be deemed a |
|
|
|
recovery under this section. |
|
|
Cooperation Of Assured |
12 |
. |
At the COMPANY'S request and at reasonable times and places designated by |
|
|
|
the COMPANY, the ASSURED shall: |
|
|
|
|
a. |
submit to examination by the COMPANY and subscribe to the same under |
|
|
|
|
oath, |
|
|
|
|
b. |
produce for the COMPANY'S examination all pertinent records, and |
|
|
|
|
c. |
cooperate with the COMPANY in all matters pertaining to the loss. |
|
|
|
|
The ASSURED shall execute all papers and render assistance to secure to the |
|
|
|
COMPANY the rights and causes of action provided for under this Bond. The |
|
|
|
ASSURED shall do nothing after loss to prejudice such rights or causes of action. |
|
|
Termination |
13 |
. |
If the Bond is for a sole ASSURED, it shall not be terminated unless written notice |
|
|
|
shall have been given by the acting party to the affected party and to the |
|
|
|
Securities and Exchange Commission, Washington, D.C., not less than sixty (60) |
|
|
|
days prior to the effective date of such termination. |
|
|
|
|
If the Bond is for a joint ASSURED, it shall not be terminated unless written notice |
|
|
|
shall have been given by the acting party to the affected party, and by the |
|
|
|
COMPANY to all ASSURED Investment Companies and to the Securities and |
|
|
|
Exchange Commission, Washington, D.C., not less than sixty (60) days prior to |
|
|
|
the effective date of such termination. |
|
|
|
|
This Bond will terminate as to any one ASSURED, other than an Investment |
|
|
|
Company: |
|
|
|
|
a. |
immediately on the taking over of such ASSURED by a receiver or other |
|
|
|
|
liquidator or by State or Federal officials, or |
|
|
|
|
b. |
immediately on the filing of a petition under any State or Federal statute |
|
|
|
|
relative to bankruptcy or reorganization of the ASSURED, or assignment for |
|
|
|
|
the benefit of creditors of the ASSURED, or |
|
|
|
|
c. |
immediately upon such ASSURED ceasing to exist, whether through merger |
|
|
|
|
into another entity, disposition of all of its assets or otherwise. |
|
|
|
|
The COMPANY shall refund the unearned premium computed at short rates in |
|
|
|
accordance with the standard short rate cancellation tables if terminated by the |
|
|
|
ASSURED or pro rata if terminated for any other reason. |
|
|
|
|
|
Conditions And |
|
|
|
|
Limitations |
|
|
|
|
|
|
Termination |
|
|
If any partner, director, trustee, or officer or supervisory employee of an |
(continued) |
|
|
ASSURED not acting in collusion with an Employee learns of any dishonest act |
|
|
|
committed by such Employee at any time, whether in the employment of the |
|
|
|
ASSURED or otherwise, whether or not such act is of the type covered under this |
|
|
|
Bond, and whether against the ASSURED or any other person or entity, the |
|
|
|
ASSURED: |
|
|
|
|
a. |
shall immediately remove such Employee from a position that would enable |
|
|
|
|
such Employee to cause the ASSURED to suffer a loss covered by this |
|
|
|
|
Bond; and |
|
|
|
|
b. |
within forty-eight (48) hours of learning that an Employee has committed |
|
|
|
|
any dishonest act, shall notify the COMPANY, of such action and provide full |
particulars of such dishonest act. |
|
|
|
|
The COMPANY may terminate coverage as respects any Employee sixty (60) |
|
|
|
days after written notice is received by each ASSURED Investment Company |
|
|
|
and the Securities and Exchange Commission, Washington, D.C. of its desire to |
|
|
|
terminate this Bond as to such Employee. |
|
|
Other Insurance |
14 |
. |
Coverage under this Bond shall apply only as excess over any valid and collectible |
|
|
|
insurance, indemnity or suretyship obtained by or on behalf of: |
|
|
|
|
a. |
the ASSURED, |
|
|
|
|
b. |
a Transportation Company, or |
|
|
|
|
c. |
another entity on whose premises the loss occurred or which employed the |
|
|
|
|
person causing the loss or engaged the messenger conveying the Property |
|
|
|
|
involved. |
|
|
Conformity |
15 |
. |
If any limitation within this Bond is prohibited by any law controlling this Bond's |
|
|
|
construction, such limitation shall be deemed to be amended so as to equal the |
|
|
|
minimum period of limitation provided by such law. |
|
|
Change or Modification |
16 |
. |
This Bond or any instrument amending or affecting this Bond may not be changed |
|
|
|
or modified orally. No change in or modification of this Bond shall be effective |
|
|
|
except when made by written endorsement to this Bond signed by an authorized |
|
|
|
representative of the COMPANY. |
|
|
|
|
If this Bond is for a sole ASSURED, no change or modification which would |
|
|
|
adversely affect the rights of the ASSURED shall be effective prior to sixty (60) |
|
|
|
days after written notice has been furnished to the Securities and Exchange |
|
|
|
Commission, Washington, D.C., by the acting party. |
|
Important Notice: |
|
|
|
The SEC Requires Proof of Your Fidelity Insurance Policy |
|
Your company is now required to file an electronic copy of your fidelity insurance coverage |
(Chubb’s ICAP Bond policy) to the Securities and Exchange Commission (SEC), according to |
rules adopted by the SEC on June 12, 2006. |
|
Chubb is in the process of providing your agent/broker with an electronic copy of your insurance |
policy as well as instructions on how to submit this proof of fidelity insurance coverage to the |
SEC. You can expect to receive this information from your agent/broker shortly. |
|
The electronic copy of your policy is provided by Chubb solely as a convenience and does not |
affect the terms and conditions of coverage as set forth in the paper policy you receive by mail. |
The terms and conditions of the policy mailed to you, which are the same as those set forth in |
the electronic copy, constitute the entire agreement between your company and Chubb. |
|
If you have any questions, please contact your agent or broker. |
|
|
|
|
|
|
|
|
|
|
VIGILANT INSURANCE COMPANY |
|
|
|
|
|
Endorsement No.: 2 |
|
|
|
|
|
Bond Number: |
80911610 |
|
|
|
NAME OF ASSURED: GENERAL AMERICAN INVESTORS COMPANY INC |
|
|
NEW YORK AMENDATORY ENDORSEMENT |
|
It is agreed that this Bond is amended as follows: |
|
1 |
. |
By adding to Section 13, Termination, the following: |
|
|
|
Bonds In Effect Sixty (60) Days Or Less |
|
|
|
If this Bond has been in effect for less than sixty (60) days and if it is not a renewal Bond, the |
|
|
COMPANY may terminate it for any reason by mailing or delivering to the ASSURED and to the |
|
|
authorized agent or broker, if any, written notice of termination at least sixty (60) days before the |
|
|
effective date of termination. |
|
|
|
Bonds In Effect More Than Sixty (60) Days |
|
|
|
If this Bond has been in effect for sixty (60) days or more, or if it is a renewal of a Bond issued by the |
|
|
COMPANY, it may be terminated by the COMPANY by mailing or delivering to the ASSURED and to |
|
|
the authorized agent or broker, if any, written notice of termination at least sixty (60) days before the |
|
|
effective date of termination. Furthermore, when the Bond is a renewal or has been in effect for sixty |
|
|
(60) days or more, the COMPANY may terminate only for one or more of the reasons stated in 1-7 |
|
|
below. |
|
|
|
1 |
. |
Nonpayment of premium; |
|
|
|
2 |
. |
Conviction of a crime arising out of acts increasing the hazard insured against ; |
|
|
3 |
. |
Discovery of fraud or material misrepresentation in the obtaining of this Bond or in the |
|
|
|
|
presentation of a claim thereunder; |
|
|
|
4 |
. |
Violation of any provision of this Bond that substantially and materially increases the hazard |
|
|
|
|
insured against, and which occurred subsequent to inception of the current BOND PERIOD; |
|
|
5 |
. |
If applicable, material physical change in the property insured, occurring after issuance or last |
|
|
|
|
annual renewal anniversary date of this Bond, which results in the property becoming uninsurable |
|
|
|
|
in accordance with the COMPANY's objective, uniformly applied underwriting standards in effect |
|
|
|
|
at the time this Bond was issued or last renewed; or material change in the nature or extent of this |
|
|
|
|
Bond occurring after issuance or last annual renewal anniversary date of this Bond, which causes |
|
|
|
|
the risk of loss to be substantially and materially increased beyond that contemplated at the time |
|
|
|
|
this Bond was issued or last renewed; |
|
|
|
|
|
|
|
|
|
6 |
. |
A determination by the Superintendent of Insurance that continuation of the present premium |
|
|
|
|
volume of the COMPANY would jeopardize the COMPANY's policyholders, creditors or the public, |
|
|
|
|
or continuing the Bond itself would place the COMPANY in violation of any provision of the New |
|
|
|
|
York Insurance Code; or |
|
|
7 |
. |
Where the COMPANY has reason to believe, in good faith and with sufficient cause, that there is |
|
|
|
|
a probable risk or danger that the Property will be destroyed by the ASSURED for the purpose of |
|
|
|
|
collecting the insurance proceeds. |
|
|
Notice Of Termination |
|
|
Notice of termination under this SECTION shall be mailed to the ASSURED and to the authorized agent |
|
|
or broker, if any, at the address shown on the DECLARATIONS of this Bond. The COMPANY, |
|
|
however, may deliver any notice instead of mailing it. |
|
|
Return Premium Calculations |
|
|
The COMPANY shall refund the unearned premium computed pro rata if this Bond is terminated by the |
|
|
COMPANY." |
2 |
. |
By adding a new Section reading as follows: |
|
|
"Section 17. Election To Conditionally Renew / Nonrenew This Bond |
|
|
Conditional Renewal |
|
|
If the COMPANY conditionally renews this Bond subject to: |
|
|
1 |
. |
Change of limits of liability ; |
|
|
2 |
. |
Change in type of coverage; |
|
|
3 |
. |
Reduction of coverage; |
|
|
4 |
. |
Increased deductible; |
|
|
5 |
. |
Addition of exclusion; or |
|
|
6 |
. |
Increased premiums in excess of 10%, exclusive of any premium increase due to and |
|
|
|
|
commensurate with insured value added; or as a result of experience rating, retrospective rating |
|
|
|
|
or audit; the COMPANY shall send notice as provided in Notices Of Nonrenewal And Conditional |
|
|
|
|
Renewal immediately below. |
|
|
Notices Of Nonrenewal And Conditional Renewal |
|
|
1 |
. |
If the COMPANY elects not to renew this Bond, or to conditionally renew this Bond as provided |
|
|
|
|
herein, the COMPANY shall mail or deliver written notice to the ASSURED at least sixty (60) but |
|
|
|
|
not more than one hundred twenty (120) days before: |
|
|
|
|
a. |
The expiration date; or |
|
|
|
|
b. |
The anniversary date if this Bond has been written for a term of more than one year. |
|
|
|
|
|
|
|
2 |
. |
Notice shall be mailed or delivered to the ASSURED at the address shown on the |
|
|
|
|
DECLARATIONS of this Bond and the authorized agent or broker, if any. If notice is mailed, proof |
|
|
|
|
of mailing shall be sufficient proof of notice. |
|
|
3 |
. |
Paragraphs 1. and 2. immediately above shall not apply when the ASSURED, authorized agent or |
|
|
|
|
broker, or another insurer has mailed or delivered written notice to the COMPANY that the Bond |
|
|
|
|
has been replaced or is no longer desired. |
3 |
. |
By adding to General Agreement B., Representations Made By Assured, the following: |
|
|
No misrepresentation shall be deemed material unless knowledge by the COMPANY would have lead |
|
|
to the COMPANY'S refusal to write this Bond. |
|
|
|
|
This Endorsement applies to loss discovered after 12:01 a.m. on June 15, 2009. |
|
|
|
|
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED. |
|
|
|
|
|
|
|
|
|
ENDORSEMENT/RIDER |
Effective date of |
|
|
this endorsement/rider: June 15, 2009 |
VIGILANT INSURANCE COMPANY |
|
|
|
Endorsement/Rider No. |
3 |
|
|
|
To be attached to and |
|
|
|
|
form a part of Bond No. |
80911610 |
|
|
Issued to: GENERAL AMERICAN INVESTORS COMPANY INC |
|
|
|
DELETING VALUATION-OTHER PROPERTY AND AMENDING CHANGE OR MODIFICATION |
ENDORSEMENT |
In consideration of the premium charged, it is agreed that this Bond is amended as follows: |
1 |
. |
The paragraph titled Other Property in Section 9, Valuation, is deleted in its entirety. |
2 |
. |
The third paragraph in Section 16, Change or Modification, is deleted in its entirety and replaced |
|
|
with the following: |
|
|
|
|
If this Bond is for a joint ASSURED, no change or modification which would adversely affect the |
|
|
rights of the ASSURED shall be effective prior to sixty (60) days after written notice has been |
|
|
furnished to all insured Investment Companies and the Securities and Exchange Commission, |
|
|
Washington, D.C., by the COMPANY. |
|
|
|
|
The title and any headings in this endorsement/rider are solely for convenience and form no part of the |
terms and conditions of coverage. |
|
|
All other terms, conditions and limitations of this Bond shall remain unchanged. |
|
|
POLICYHOLDER |
DISCLOSURE NOTICE OF |
TERRORISM INSURANCE COVERAGE |
(for policies with no terrorism exclusion or sublimit) |
You are hereby notified that, under the Terrorism Risk Insurance Act (the “Actâ€), effective |
December 26, 2007, this policy makes available to you insurance for losses arising out of |
certain acts of terrorism. Terrorism is defined as any act certified by the Secretary of the |
Treasury, in concurrence with the Secretary of State and the Attorney General of the |
United States, to be an act of terrorism; to be a violent act or an act that is dangerous to |
human life, property or infrastructure; to have resulted in damage within the United |
States, or outside the United States in the case of an air carrier or vessel or the premises |
of a United States Mission; and to have been committed by an individual or individuals as |
part of an effort to coerce the civilian population of the United States or to influence the |
policy or affect the conduct of the United States Government by coercion. |
|
You should know that the insurance provided by your policy for losses caused by acts of |
terrorism is partially reimbursed by the United States under the formula set forth in the |
Act. Under this formula, the United States pays 85% of covered terrorism losses that |
exceed the statutorily established deductible to be paid by the insurance company |
providing the coverage. |
|
However, if aggregate insured losses attributable to terrorist acts certified under the Act |
exceed $100 billion in a Program Year (January 1 through December 31), the Treasury |
shall not make any payment for any portion of the amount of such losses that exceeds |
$100 billion. |