Page1|EP-BPL-001-08/2015
Bankers Professional Liability Policy
Inconsiderationofthepaymentofthepremiumandsubjecttoallterms,conditionsandlimitationsofthisPolicy,theInsuredsandInsureragree:
SectionI InsuringAgreement
TheInsurershallpayonbehalfoftheInsuredsallLossasaresultofaClaimfirstmadeagainsttheInsuredsduringthePolicyPeriodforaWrongfulActandreportedtotheInsurerasrequiredbythisPolicy.
SectionII Definitions
1. “Application”shallmeantheapplicationsubmittedtotheInsurerforthisPolicytogetherwithanywrittenmaterialsattachedtheretoorsubmittedtotheInsurerinconnectionwiththeunderwritingofthisPolicy.ApplicationshallalsoincludeallpubliclyavailabledocumentsfiledbytheCompanywiththeSecuritiesandExchangeCommissionduringthetwelve(12)monthsprecedingtheeffectivedateofthisPolicy..
2. “Company”shallmeantheParentCompanyandanySubsidiary,includingsuchcompanyasadebtorinpossessionunderUnitedStatesbankruptcylaworanequivalentstatusunderthelawofanyothercountry.
3. “Claim”shallmean:
a. awrittendemandagainstanInsured:
i. formonetaryornon-monetary(includinginjunctive)relief,includingarequesttotollanystatuteoflimitations,or
ii. toengageinarbitrationormediation,
whichshallbedeemedfirstmadeuponreceiptbytheInsuredofsuchdemand;
b. acivilorcriminalproceedingagainstanInsured,whichshallbedeemedfirstmadeupon:
i. theserviceofacomplaintorsimilarpleadingupontheInsured,or
ii. inthecaseofacriminalproceeding,anarrest,thereturnofanindictmentorinformation,orthereceiptorfilingofnoticeofchargesorsimilardocument;or
c. anadministrativeorregulatoryproceeding(otherthananinvestigation)byanEnforcementAuthorityagainstanInsuredwhichshallbedeemedfirstmadeuponreceiptofanoticeofcharges,complaintorsimilardocumentbytheInsured;
foraWrongfulAct.
Page2|EP-BPL-001-08/2015
4. “DefenseCosts”shallmeanthatpartofLossconsistingof:
a. reasonablefees,costsandexpensesincurredbytheInsuredsinthedefenseorappealofanyClaim,includingthecostsofanappealbond,attachmentbondorsimilarbond,butdoesnotincludetheobligationtoapplyfororfurnishsuchbonds;and
b. reasonablefees,costsandexpensesincurredbytheInsuredsattheInsurer’srequesttoassisttheInsurerininvestigatingaClaim.
DefenseCostsshallnotinclude(i)anysalaries,wages,overhead,benefitsorbenefitexpensesassociatedwithanyInsured,or(ii)anyfees,costsorexpensesincurredbyanInsuredpriortothetimethattheClaimisfirstmadeagainsttheInsured.
5. “EnforcementAuthority”shallmeananyfederal,state,localorforeignlawenforcementorgovernmentalauthority(includingtheUnitedStatesDepartmentofJustice,theUnitedStatesSecuritiesandExchangeCommissionandanyfederalorstateattorneygeneral)ortheenforcementunitofanysecuritiesexchangeorsimilarself-regulatorybody.
6. “ForeignJurisdiction”shallmeananyjurisdiction,otherthantheUnitedStatesoranyofitsterritoriesorpossessions.
7. “Insured(s)”shallmeananyInsuredPersonandanyCompany.
8. “InsuredPerson”shallmeananynaturalpersonwhowas,isorshallbe:
a.adulyelectedorappointeddirector,officer,partner,principal,trustee,regent,governor,generalcounsel,chiefcomplianceofficer,orriskmanagerofaCompany;
b.adulyelectedorappointednaturalpersongeneralpartner,managingmemberormemberofaboardofmanagersofaCompany;
c.anofficialofaCompany,includinganCompanyorganizedoroperatedinaForeignJurisdiction,whileservinginafunctionallyequivalentpositiontothosedescribedinsubsectionsa.andb.above;or
d.afullorparttime,seasonalortemporaryemployeeofaCompany.
9. “Insurer”shallmeantheinsurancecompanyidentifiedatItem2.oftheDeclarations.
10. “LoanServicing”shallmeananyadministrativeservicesinconnectionwithanyloan,lease,extensionofcreditorotherfundingcommitment.
11. “Loss”shallmeanthoseamountsanyInsuredislegallyobligatedtopayasaresultofaClaim,including,butnotlimitedto:
a. settlementsandjudgments,includingcostsandfeesawardedpursuanttoacoveredjudgmentandpre-judgmentandpost-judgmentinterestonthatportionofacoveredjudgment;
Page3|EP-BPL-001-08/2015
b. compensatory,punitive,exemplaryandmultipledamages;and
c. DefenseCosts.
Loss(otherthanDefenseCosts)shallnotincludeanyofthefollowing:
i. finesorpenalties;
ii. taxes;
iii. anyamountforwhichanInsuredislegallyabsolvedfrompayment;
iv. thepaymentofanydividendsorotherdistributionsofcorporateprofitsoftheCompanytoanyshareholderoftheCompany;
v. anyamountwhichconstitutesdisgorgement,restitution,thereturnoffees,commissions,chargesorothercompensationpaidto,duetoorclaimedbyanInsured;
vi. compensationearnedbytheclaimantinthecourseofemploymentbutunpaidbyanyInsured,includingsalary,wages,commissions,bonusorincentivecompensation;
vii. anyamountincurredtotestfor,monitor,cleanup,remove,contain,treat,detoxifyorneutralizePollutants;
viii.principal,interest,orothermonieseitherpaid,accruedordueastheresultofanyloan,leaseorextensionofcreditbytheCompanyunlesssuchamountsaredeemedtobepartofinsurabledamages;
ix.diminutioninvalueordamagesresultingfromdiminutioninvalueofmoneyorsecurities;
x.actualmoney,securities,propertyorotheritemsofvalueinthecustodyorcontrolofanInsured;
xi. amountsotherwisereimbursabletoanInsuredbyanytrust,estate,planorfundoranysimilarentityorthesponsorofanysuchtrust,estate,planorfundorsimilarentity;
ix. anyamountnotinsurableunderthelawpursuanttowhichthisPolicyshallbeconstrued;or
x. costsincurredbyanInsuredtocomplywithanyorderfornon-monetaryrelief(includinginjunctiverelief)orwithanyagreementtoprovidesuchrelief.
Theinsurabilityofmatterswithinthisdefinitionshallbedeterminedunderthelawoftheapplicablejurisdictionmostfavorabletosuchinsurability,including,withoutlimitation,thejurisdictioninwhichtheCompany,theInsuredPersons,theInsurerorsuchClaimislocated.
12. “ManagementControl”shallmean:
Page4|EP-BPL-001-08/2015
a. owninganinterestofanentityrepresentingmorethanfiftypercent(50%)ofthepowertomanageorcontrolsaidentity,includingthepowertoelect,appointordesignateamajorityoftheboardofdirectorsorequivalentexecutivesofsuchentity;or
b. havingtheright,pursuanttowrittencontractortheby-laws,charter,operatingagreementorsimilardocumentsofanentity(includingalimitedliabilitycompanyorjointventure),toelect,appointordesignateamajorityoftheboardofdirectorsorequivalentexecutivesofsuchentity.
13. “ParentCompany”shallmeantheentityororganizationidentifiedinItem1.oftheDeclarations.
14. “PolicyPeriod”shallmeantheperiodfromtheInceptionDateofthisPolicytotheExpirationDateofthisPolicyassetforthinItem3.oftheDeclarations(subjecttoitsearliercancellationinaccordancewithSectionXIIICancellationorNon-Renewal)andtheDiscoveryPeriod,ifapplicable.
15. “Pollutants”shallmeananysubstancelocatedanywhereintheworldexhibitinganyhazardouscharacteristicsasdefinedby,oridentifiedonanylistofhazardoussubstancesissuedby,theUnitedStatesEnvironmentalProtectionAgencyoranystate,county,municipalityorlocalitycounterpartthereofincluding,butnotlimitedto,nuclearmaterialornuclearwaste.Suchsubstancesshallinclude,withoutlimitation,solids,liquids,gaseous,biological,radiologicalorthermalirritants,contaminantsorsmoke,vapor,dust,fibers,mold,spores,fungi,germs,soot,fumes,acids,alkalis,chemicalsorwastematerialsandanyotherairemission,odor,wastewater,oiloroilproducts,infectiousormedicalwaste,asbestosorasbestosproductsandanynoise.
16. “ProfessionalServices”shallmeanthoseservicesallowedunderthelawsgoverningservicesbytheInsuredandperformed,requiredtobeperformed,orfailedtobeperformedbytheInsureds(oronbehalfoftheInsuredsbyanypersonorentity),forthebenefitof,oronbehalfofacustomerorprospectivecustomeroftheInsureds:
(i) forafee,commissionorotherconsideration,includingbutnotlimitedtointerestmargin,or
(ii) whereafee,commissionorothermonetaryconsiderationwouldnormallybereceivedbytheInsuredsbutforbusinessorotherreasonsiswaivedbytheInsureds.
Provided,however,thatProfessionalServicesshallnotinclude:
(i) theactualperformanceofmedicalorhealthcareservices,realestateappraisalservices,architecturalorconstructionmanagementservices,thepracticeoflawortherenderingoflegalservices,unlesssuchlegalservicesareperformedbytheInsuredinsupportof,incidentto,andinfurtheranceofProfessionalServices;or
(ii) servicesperformedbyanyentityastowhichtheInsuredshaveacquiredownershiporcontrolassecurityforaloanorotherextensionofcredit.
17. “RelatedWrongfulActs”shallmeanallWrongfulActsthatarelogicallyorcausallyconnectedbyanyfact,circumstance,situation,event,transaction,causeorseriesofrelatedfacts,circumstances,situations,events,transactionsorcauses.
Page5|EP-BPL-001-08/2015
18. “ResponsibleManager”shallmeananypast,presentorfutureindividuallistedinItem9.ofthe
DeclarationsPage.
19. “Subsidiary”shallmeananyentitywithrespecttowhichtheParentCompanyhasManagementControl.
20. “WrongfulAct”shallmeananyactualorallegedact,error,misstatement,misleadingstatement,neglectorbreachofdutybyanyInsuredintherenderingofProfessionalServices.
SectionIII Exclusions
TheInsurershallnotbeliabletomakeanypaymentforLossinconnectionwithanyClaimmadeagainstanyInsured:
A. Conduct
basedupon,arisingoutof,orrelatingtoanydeliberatelyfraudulentactordeliberatelyfraudulentomissionoranyintentionalviolationofanystatute,ruleorlawbysuchInsuredprovided,however,that:
i. thisexclusionshallonlyapplyifafinalandnon-appealableadjudicationadversetosuchInsuredinanunderlyingproceedingestablishesthatsuchconductoccurred;and
ii. Intheeventanact,omissionorviolationistreatedasacriminalviolationinaForeignJurisdictionbutnotintheUnitedStates,theimpositionuponanInsuredofacriminalfineorothercriminalsanctioninsuchForeignJurisdictionwillnot,inandofitself,bedeemedconclusiveproofthatadeliberatelyfraudulentact,adeliberatelyfraudulentomissionoranyintentionalviolationofanystatute,ruleorlawbysuchInsuredhasoccurred
ForpurposesofdeterminingtheapplicabilityofthisExclusion,theWrongfulActsandknowledgeofanyInsuredPersonshallnotbeimputedtoanyotherInsuredPersonand,onlytheWrongfulActsandknowledgeofanyResponsibleManagershallbeimputedtotheCompany.
B. PriorNotice
baseduponorarisingoutofanyWrongfulAct,fact,circumstanceorsituationwhichhasbeenthesubjectofanywrittennoticegivenbeforetheinceptionofthePolicyPeriodunderanypolicy;
C. ContractualLiability
baseduponorarisingoutof:a. anInsured’sallegedliabilityunderanyoralorwrittencontractoragreement,
includingbutnotlimitedtoexpresswarrantiesorguarantees;orb. theliabilityofothersanInsuredassumesunderanyoralorwrittencontractor
agreement; provided,however,thisexclusionshallnotapplyto:
Page6|EP-BPL-001-08/2015
i. anInsured’sliabilitythatexistsintheabsenceofsuchcontractoragreement;orii. thatpartofanyClaimagainstanInsuredbyaclientorcustomeroftheInsured,
thatallegesabreachofcontractualobligationsintherenderingoforfailuretorenderProfessionalServices.
D. BodilyInjury/PropertyDamage
foranyactualoralleged:
1. bodilyinjury,mentalanguish,emotionaldistress,sickness,disease,death,libel,slanderordefamationofanyperson;or
2. damagetoordestructionofanytangibleproperty,includingthelossofusethereof;
E. Insuredv.Insured
broughtormaintainedbyoronbehalfofanyInsuredinanycapacityprovidedthisExclusionshallnotapplyto:
i. anyClaimthatisintheformofacross-claim,thirdpartyclaimorotherwiseforcontributionorindemnitywhichispartofandresultsdirectlyfromaClaimwhichisnototherwiseexcludedunderthispolicy;
ii. anyClaimbroughtormaintainedbyoronbehalfofabankruptcyorinsolvencyreceiver,trustee,examiner,conservator,liquidator,rehabilitatororcreditors’committee(orequivalentinaforeignjurisdiction)ofaCompany,oranyassigneeofanyoftheforegoing;or
iii. anyClaimbroughtandmaintainedoutsideanycommonlawjurisdiction,includingtheUnitedStatesofAmerica;
F. ViolationofLaw
1. foranyactualorallegedviolationofanyoftheresponsibilities,obligationsordutiesimposedpursuanttotheEmployeeRetirementIncomeSecurityActof1974,asamended,oranysimilarfederal,state,localorforeignstatutorylaworcommonlaw;provided,however,thissubsectionshallonlyapplywithrespecttoplans,programsandtrustsestablishedormaintainedinwholeorinpartforthebenefitofemployeesoftheCompany;
2. foranyactualorallegedviolationoftheFairLaborStandardsActorofanyotherfederal,state,localorforeignlawstatutoryorcommongoverningwage,hour,labor,employmentorpayrollpoliciesofanyCompany;or
3.basedupon,arisingoutof,orrelatedtotheemploymentofanyindividualoranyemploymentpractice,including,butnotlimitedto,wrongfuldismissal,dischargeortermination,discrimination,harassment,retaliationorotheremployment-relatedclaim;
G. CounterpartyRisk
Page7|EP-BPL-001-08/2015
fortheinabilitytomakepaymentbyanybankorbankinginstitutionoranybrokerordealerinsecuritiesorcommoditiesorselectionofsuch,provided,however,thatthisexclusionshallnotapplytoDefenseCosts;
H. Lending
basedupon,arisingoutoforrelatingtotheactualorallegedpurchase,sale,origination,participation,funding,extension,restructuring,acceleration,transfer,repossession,withdrawal,termination,assignmentorforeclosureofanyloan,lease,extensionofcreditorotherfundingcommitment,orthefailureorrefusaltodoanyoftheforegoing,ortherenderingofadviceinconnectionwithanyloan,lease,extensionofcreditorotherfundingcommitmentortheoperationorcontrolofanyentityorpropertyacquiredassecurityorcollateralforanyloan,lease,extensionofcreditorotherfundingcommitment;provided,however,thisexclusionshallnotapplytoLoanServicing.
I. SecurityBrokerorDealer
baseduponorarisingoutofanyactualorallegedliabilityinvolvingtheactivitiesofanyInsuredasa“broker”or“dealer”insecurities,asdefinedinSections3(a)(4)or3(a)(5),respectively,oftheSecuritiesExchangeActof1934,asamended;
J. InvestmentBanking
baseduponorarisingoutofanyactualorallegedliabilityinvolvinganyadviceorservicerelatingtoorinconnectionwithanyaspectofcorporatemergers,acquisitions,securitiesofferings,restructuring,divestituresorinvestmentbanking;or
K. Electrical/MechanicalFailure
baseduponorarisingoutofanyelectricalormechanicalfailurecausedbyathirdparty,actingindependentlyoftheInsured,byaneventoutsideoftheCompany’sresponsibility,including,withoutlimitation,electricalpowerinterruptionorsurge,brownout,blackout,shortcircuit,overvoltage,inductionorpowerfluctuations.
SectionIV. LimitofLiability
A. DefenseCostsshallbepartof,andnotinadditionto,theLimitsofLiabilitystatedinItem4.oftheDeclarations.SuchDefenseCostsshallreducetheLimitofLiability.
B. ThemaximumliabilityoftheInsurerforallLossarisingfromallClaimsshallbetheamountstatedinItem4.
SectionV Retention
A. TheRetentionspecifiedinItem5.oftheDeclarationsshallapplytoLossresultingfromeachClaim.
B. TheInsurer’sliabilitywithrespecttocoveredLossresultingfromeachClaimshallbeexcessoftheapplicableRetentionspecifiedinItem5.oftheDeclarations.Theapplicable
Page8|EP-BPL-001-08/2015
RetentionshallbebornebytheCompanyuninsuredunderthisPolicy,andshallapplytoallcoveredLoss,includingDefenseCosts.
SectionVI RelatedClaims
MorethanoneClaiminvolvingthesameWrongfulActorRelatedWrongfulActsofoneormoreInsuredsshallbeconsideredasingleClaim,andonlyoneRetentionshallbeapplicabletosuchsingleClaim.IntheeventsuchsingleClaimtriggersmorethanoneRetention,thehighestretentionshallbeapplicable.AllsuchClaimsconstitutingasingleClaimshallbedeemedtohavebeenfirstmadeontheearlierofthefollowingdates:(1)theearliestdateonwhichanysuchClaimwasfirstmade;or(2)theearliestdateonwhichanysuchWrongfulActorRelatedWrongfulActwasreportedunderthisPolicyoranyotherPolicyprovidingsimilarcoverage,regardlesswhethersuchdateisbeforeorduringthePolicyPeriod.InnoeventshallasinglelawsuitorproceedingconstitutemorethanoneClaimsubjecttomorethanoneRetention.
SectionVII DefenseandSettlement
A. DefenseofClaims
1. TheInsureds,andnottheInsurer,shallhavethedutytodefendallClaims.
2. TheInsuredsshallnotincurDefenseCostsinconnectionwithanyClaimwithoutthepriorwrittenconsentoftheInsurer,whichconsentshallnotbeunreasonablywithheldordelayed.TheInsurershallnotbeliableunderthisPolicyforanyDefenseCostsincurredwithoutsuchconsent.
3. TheInsurershalladvancesuchDefenseCostsonacurrentbasisbutnolaterthanten(10)daysaftertheInsurerreceivesitemizedinvoicesforsuchDefenseCosts;providedthattotheextentitisfinallyestablishedthatanysuchDefenseCostsarenotcoveredunderthisPolicy,theInsureds,severallyaccordingtotheirinterests,shallrepaysuchDefenseCoststotheInsurer.
B. SettlementofClaims
TheInsuredsshallnotadmitliability,offertosettle,oragreetoanysettlementinconnectionwithanyClaimwithouttheexpresspriorwrittenconsentoftheInsurer,whichconsentshallnotbeunreasonablywithheldordelayed.TheInsurershallnotbeliableunderthisPolicyforincurredasaresultofanysuchadmission,offeroragreementtowhichtheInsurerdidnotsoconsent.
C. Insurer’sRighttoAssociate
TheInsurershallatalltimeshavetheright,butnottheduty,toassociatewiththeInsuredsintheinvestigation,defenseorsettlementofanyClaimthatmayimplicatecoverageunderthisPolicy.TheInsuredsshallcooperatewiththeInsurerandprovidetheInsurerwithsuchinformationasitmayreasonablyrequireintheinvestigation,defenseorsettlementofanyClaim.ThefailureofoneInsuredPersonorCompanytocomplywiththisprovisionshallnotimpairtherightsofanyotherInsuredPersonunderthisPolicy.
D. Allocation
Page9|EP-BPL-001-08/2015
IfinanyClaimtheInsuredsincurLossjointlywithothers(includingotherInsureds)whoarenotaffordedcoverageunderthisPolicyforsuchClaimorincurbothLosscoveredbythisPolicyandotheramountswhicharenotcoveredbythisPolicy,theInsuredsandtheInsurershallallocatesuchamountsbetweencoveredLossanduncoveredlossbasedontherelativelegalandfinancialexposuresofthepartiestocoveredanduncoveredmatters.IftheInsuredsandtheInsurercannotagreeonanallocationofDefenseCosts,theInsurershalladvanceDefenseCostswhichtheInsurerbelievestobecoveredunderthisPolicyuntiladifferentallocationisnegotiated,arbitratedorjudiciallydetermined.Insuchevent,suchallocationshallbeappliedretroactivelytoallDefenseCosts.
SectionVIII Notice
A. Claims
TheInsuredsshall,asaconditionprecedenttotheirrightsunderthisPolicywithrespecttoaClaim,givetheInsurernoticeinwritingofanysuchClaimwhichismadeduringthePolicyPeriod.AnynoticeprovidedpursuanttothisSectionVIIINoticeshallbegivenassoonaspracticableaftertheResponsiblePersonoftheParentCompanyfirstlearnsofsuchClaim,butinnoeventlaterthansixty(60)daysaftertheendofthePolicyPeriod.
B. LateNotice–PrejudiceRequired
IftheInsuredsfailtoprovidetimelynoticetotheInsurerasspecifiedabove,theInsurershallnotbeentitledtodenycoveragebasedsolelyuponlatenoticeunlesstheInsurercandemonstrateitsinterestsweremateriallyprejudicedbyreasonofsuchlatenotice.
C. PotentialClaims
DuringthePolicyPeriodortheDiscoveryPeriod(ifpurchased),theInsuredsmaygivewrittennoticetotheInsurerofcircumstancesthatmayreasonablybeexpectedtogiverisetoaClaim;and
1. suchnoticeshallsetforththeWrongfulActallegationsanticipatedandthereasonsforanticipatingsuchaClaim,withfullparticularsastodates,personsandentitiesinvolved;
2. anyClaimwhichissubsequentlymadeagainstsuchInsuredalleging,arisingoutof,baseduponorattributabletosuchcircumstances,shallbeconsideredmadeatthetimenoticeofsuchcircumstanceswasfirstgiventotheInsurer;and
3. noticeofanysuchsubsequentClaimshallbegiventotheInsurerassoonaspracticableaftertheriskmanagerorin-housegeneralcounseloftheParentCompanyfirstlearnsofsuchClaim.NocoverageshallbeprovidedunderthisPolicyforfees,costs,expensesorotherlossincurredasaresultofsuchcircumstancespriortothetimesuchsubsequentClaimisactuallymade.
D. ExceptasotherwiseprovidedinthisPolicy,allnoticesunderanyprovisionofthisPolicyshallbeinwritingandgivenbyemail,prepaidexpresscourierorcertifiedmailproperlyaddressedtotheappropriateparty.NoticetotheInsuredsmaybegiventotheParentCompanyattheaddressshowninItem1.oftheDeclarations.NoticetotheInsurershallbegiventotherespectiveaddressshowninItem6.oftheDeclarations.Ifnoticeisgiven
Page10|EP-BPL-001-08/2015
asdescribedabove,itshallbedeemedtobereceivedandeffectiveuponthedateoftransmittal,subjecttoproofoftransmittal.
SectionIX Transactions:CoverageImplicationsofMergers,AcquisitionsandSalesoftheParentCompanyoranySubsidiary
A. MergerorAcquisitionofParentCompany
IfduringthePolicyPeriodanyofthefollowingeventsoccur:
1. theParentCompany:(i)sellsallorsubstantiallyallofitsassetstoanyotherpersonorentityoraffiliatedgroupofpersonsorentities,or(ii)mergesorconsolidateswithanotherentitysuchthattheParentCompanyisnotthesurvivingentity;or
2. anyperson,entityoraffiliatedgroupofpersonsorentitiesacquiresManagementControloftheParentCompany;
thencoverageunderthisPolicyshallcontinueuntilexpirationofthePolicyPeriod,butonlyforWrongfulActstakingplacepriortotheeffectivedateofsuchtransaction.TheentirepremiumforthisPolicyshallbedeemedearnedasofthedateofsuchtransaction.
B. CreationofaSubsidiary
IfduringthePolicyPeriodanyentityiscreatedbytheParentCompanyandmeetsthedefinitionofaSubsidiary,thensuchSubsidiaryanditsInsuredPersonsshallbeInsureds,butonlywithrespecttoWrongfulActsoccurringorallegedlyoccurringaftersuchentityiscreatedand/orqualifiedasaSubsidiary.
C. AcquisitionofaSubsidiary
1. ExceptassetforthinthefollowingsubsectionC.2.below,ifduringthePolicyPeriodanyentityfirstqualifiesasaSubsidiary,thensuchSubsidiaryanditsInsuredPersonsshallbeInsureds,butonlywithrespecttoWrongfulActsoccurringorallegedlyoccurringaftersuchentityiscreatedand/orqualifiedasaSubsidiary.
2. ExceptassetforthinsubsectionB.above,ifanentityfirstqualifiesasaSubsidiaryduringthePolicyPeriodandifatthattimesuchSubsidiary’stotalassetsexceedtwenty-fivepercent(25%)ofthetotalconsolidatedassetsoftheCompanyassetforthintheCompany’smostrecentauditedconsolidatedfinancialstatements,thencoverageunderthisPolicyforsuchSubsidiaryanditsInsuredPersonsassetforthinthesubsectionC.1.aboveshallceaseninety(90)daysaftersuchentityfirstqualifiesasaSubsidiaryunless:
a. theParentCompanywithinsuchninety(90)daysprovidestheInsurerwithwrittennoticeofsuchcreationoracquisition;
b. theParentCompanyandtheInsureragreeonanyrevisionstothePolicyeitherpartymayrequire;and
c. theParentCompanypaysanyadditionalpremiumrequiredbytheInsurerasaresultoftheadditionofthenewSubsidiary;
andthenonlywithrespecttoWrongfulActsoccurringorallegedlyoccurringaftersuchentityqualifiedasaSubsidiary.
Page11|EP-BPL-001-08/2015
D. CessationofaSubsidiary
IfduringorpriortothePolicyPeriodanyentityceasestobeaSubsidiary,thencoverageforsuchformerSubsidiaryanditsInsuredPersonsunderthisPolicyshallonlybeavailable,subjecttoallothertermsandconditionsofthisPolicy,forWrongfulActsoccurringorallegedlyoccurringpriortothedateitceasedtoqualifyasaSubsidiary.
SectionX OtherInsuranceandSubrogation
A. OtherInsurance
AllamountspayableunderthisPolicywillbespecificallyexcessof,andwillnotcontributewith,anyothervalidandcollectibledirectorsandofficersliabilityinsurance,professionalliabilityinsuranceoremploymentpracticesliabilityinsurance,oranyotherinsurance,includingbutnotlimitedtoanyinsuranceunderwhichthereisadutytodefend,unlesssuchotherinsuranceisspecificallyexcessofthisPolicy;providedthisPolicyshallapplyonaprimarybasiswithrespecttoanypersonalumbrellaexcessliabilityinsurancePolicypurchasedbyanInsuredPerson.ThisPolicywillnotbesubjecttothetermsofanyotherinsurancePolicy.
B. Subrogation
1. IntheeventofanypaymentunderthisPolicy,theInsurershallbesubrogatedtoalloftheInsureds’rightsofrecoveryandtheInsuredEntityandInsuredPersonsshallexecuteallpapersrequiredandshalldoeverythingthatmaybenecessarytosecuresuchrights,includingtheexecutionofsuchdocumentsasmaybenecessarytoenabletheInsurertoeffectivelybringsuitinthenameofanyInsuredPersonsortheInsuredEntity.TheInsurershallnotexerciseanyavailablerightofsubrogationagainstanInsuredPersonunderthisPolicyunlessSectionIIIExclusionsA.ConductappliestosuchInsuredPerson.
2. IntheeventtheInsurerrecoversamountsitpaidunderthisPolicy,theInsurerwillreinstatetheapplicableLimitsofLiabilityofthisPolicytotheextentofsuchrecovery,lesstheInsurer’scostsincurredinobtainingsuchrecovery.TheInsurerassumesnodutytoseekarecoveryofanyamountspaidunderthisPolicy.
SectionXI OrderofPayments
A. TheInsurershallbeentitledtopayLossasitbecomesdueandpayableunderthisPolicywithoutconsiderationofotherfuturepaymentobligations.
B. ThebankruptcyorinsolvencyofanyInsuredshallnotrelievetheInsurerofanyofitsobligationstoprioritizepaymentofcoveredLossunderthisPolicyassetforthabove.
SectionXII DiscoveryPeriod
A. IntheeventtheInsurerrefusestorenewthisPolicyortheInsuredEntitycancelsornon-renewsthisPolicy,theInsuredEntityandtheInsuredPersonsshallhavetherighttoelectanextensionofthecoverageprovidedbythisPolicyforthetimeperiodandsubjecttotheadditionalpremiumsetforthinItem7.oftheDeclarations.CoverageforanyClaimdeemedfirstmadeduringtheDiscoveryPeriodshallapplyonlywithrespecttoany
Page12|EP-BPL-001-08/2015
WrongfulActcommittedorallegedtohavebeencommittedbeforetheExpirationDateofthePolicyPeriodaslistedinItem3.oftheDeclarations.
B. AsaconditionprecedenttotherighttopurchasetheDiscoveryPeriod,thetotalpremiumforthisPolicymusthavebeenpaidandawrittenrequesttoelecttheDiscoveryPeriod,togetherwithpaymentoftheadditionalpremiumfortheDiscoveryPeriod,mustbeprovidedtotheInsurernolaterthansixty(60)daysfollowingtheeffectivedateofsuchnon-renewalorcancellation.ThepremiumpaidfortheDiscoveryPeriodisdeemedfullyearnedattheinceptionoftheDiscoveryPeriod.
C. ThefactthatthecoverageprovidedbythisPolicymaybeextendedbyvirtueofthepurchaseoftheDiscoveryPeriodshallnotinanywayincreasetheLimitofLiabilitystatedinItem4.oftheDeclarations.ForpurposesoftheLimitofLiability,theDiscoveryPeriodisconsideredtobepartof,andnotinadditionto,thePolicyPeriod.
SectionXIII CancellationorNon-Renewal
A. ThisPolicymaybecancelledbytheParentCompanyatanytimebypriorwrittennoticetotheInsurerstatingtheeffectivetimeofsuchcancellation.Uponcancellation,theInsurershallbeentitledtoretaintheprorataproportionofthepremiumcalculatedfromtheeffectivedateofsuchcancellation,unlessSectionIXTransactions:CoverageImplicationsofMergers,AcquisitionsandSalesoftheParentCompanyoranySubsidiary,A,above,applies,inwhichcasetheentirepremiumforthisPolicyshallbedeemedfullyearned.
B. ThisPolicymaybecancelledbytheInsureronlyfornonpaymentofpremium.SuchcancellationshallbeeffectiveonthedatespecifiedinthewrittennoticeofcancellationgivenbytheInsurertotheParentCompany,providedsuchdateisatleastten(10)daysafterthedatesuchnoticeisgiven.IftheParentCompanypaysinfullthepremiumduepriortosucheffectivedate,theInsurer’snoticeofcancellationshallbeineffective.
C. IftheInsurerelectsnottorenewthisPolicy,theInsurershallprovidetheParentCompanywithnolessthansixty(60)daysadvancewrittennoticethereof.
SectionXIV Application
A. TheInsuredsrepresentandacknowledgethatstatementsmadeandinformationintheApplicationareaccurateandcomplete,arethebasisofthisPolicyandareincorporatedinandconstitutepartofthisPolicy.IfanystatementintheApplicationwas(i)notaccurateandcompleteand(ii)eitherwasmadewiththeintenttodeceiveormateriallyaffectedtheacceptanceoftheriskorhazardassumedbytheInsurerunderthisPolicy,thentheInsurershallnotbeliabletomakeanypaymentforLossinconnectionwithanyClaimbasedupon,arisingoutoforinconsequenceofthefactsthatwerenotaccuratelyandcompletelydisclosedintheApplication.
B. TheInsurershallnotbeentitledunderanycircumstancestorescindorvoidthisPolicyinwholeorinpart.
SectionXV DisputeResolutionProcess
TheInsurerandtheInsuredsshallattemptingoodfaithtoresolveanydisputearisingoutoforrelatingtothisPolicypromptlybynegotiationbetweenexecutiveswithauthorityto
Page13|EP-BPL-001-08/2015
settlesuchdispute.Ifanydisputecannotberesolvedthroughnegotiation,thepartiesagreethattheywillsubmitthedisputetonon-bindingmediation.Thepartieswillusebesteffortstoagreeonthetermsofanysuchmediationprocess,butiftheydonotagreewithinthirty(30)daysofeitherpartyrequestingmediation,thedisputewillbesubmittedtoJAMSformediation.Eachpartywillbeartheirowncosts,regardlessofthemediationprocessused.Ifthedisputeisnotsettledatmediation,nopartymaycommenceanactionagainstanyotherpartyuntilatleastthirty(30)daysafterthefinalmediationsession.
SectionXVI ActionAgainsttheInsurer
A. NoactionshalllieagainsttheInsurerunless,asaconditionprecedentthereto,thereshallhavebeenfullcompliancewithallthetermsofthisPolicy.
B. NopersonororganizationshallhaveanyrightunderthisPolicytojointheInsurerasapartytoanyClaimagainstanInsured,norshalltheInsurerbeimpleadedbyanyInsuredortheirlegalrepresentativeinanysuchClaim.
SectionXVII Spouses,DomesticPartners,EstatesandLegalRepresentatives
A. ThecoverageprovidedbythisPolicyshallalsoapplytoanInsuredPerson’slawfulspouseordomesticpartnerunderapplicablelawortheprovisionsofanyformalprogramestablishedbytheCompany,butonlyforaClaimarisingoutofanyactualorallegedWrongfulActsofsuchInsuredPerson.
B. ThecoverageprovidedbythisPolicyalsoshallapplytotheestates,heirs,legalrepresentativesorassignsofanyInsuredPersonintheeventoftheirdeath,incapacityorbankruptcy,butonlyforClaimsarisingoutofanyactualorallegedWrongfulActsofsuchInsuredPerson.
SectionXVIII Assignment
ThisPolicyandanyandallrightshereunderarenotassignablewithoutthepriorwrittenconsentoftheInsurer,whichconsentshallbeinthesoleandabsolutediscretionoftheInsurer.
SectionXIX ConformitytoStatute
AnytermsofthisPolicywhichareinconflictwiththetermsofanyapplicablelawsareherebyamendedtoconformtosuchlaws.
SectionXX TerritoryandLossinForeignJurisdictions
A. WorldwideTerritory
CoverageshallapplytoClaimsmadeandWrongfulActscommittedworldwide.
B. LossIncurredByaCompanyinaForeignJurisdiction
AnyLossincurredbyaCompanyinaForeignJurisdictionmaybedeemedaLossoftheParentCompanypayabletotheParentCompanyattheaddresslistedatItem1.oftheDeclarations.AnysuchpaymentbytheInsurertotheParentCompanypursuanttothis
Page14|EP-BPL-001-08/2015
subsectionshallfullydischargetheInsurer’sliabilityunderthePolicyforsuchLosstosuchCompany.
SectionXXI CompliancewithApplicableTradeandEconomicSanctionLaws
ThisPolicydoesnotprovidecoveragethatwouldbeinviolationofanyapplicablelawsorregulationsconcerningtradeoreconomicsanctions,including,butnotlimitedto,thoseadministeredandenforcedbytheUnitedStatesTreasury’sOfficeofForeignAssetControl(OFAC).PaymentofLossunderthisPolicyshallonlybemadeinfullandcompletecompliancewithalleconomicortradesanctionlawsorregulations,including,butnotlimitedto,sanctions,lawsandregulationsadministeredandenforcedbyOFAC.
SectionXXII Currency
Allpremiums,limits,retentions,LossandotheramountsunderthisPolicyareandshallbeexpressedandpayableinthecurrencyoftheUnitedStatesofAmerica.IfanycoveredLoss,includingjudgmentsorsettlements,isexpressedin,calculatedonorotherwisebaseduponanyothercurrency,paymentofsuchLoss,whetherinsuchothercurrencyorU.S.dollars,shallbemadeattherateofexchangepublishedinTheWallStreetJournalonthedatetheInsurer’sobligationtopaysuchLossisestablished(or,ifnotpublishedonthatdate,onthedateofnextpublication).
SectionXXIII Bankruptcy
BankruptcyorinsolvencyofanyCompanyorInsuredPersonsshallnotrelievetheInsurerofanyofitsobligationsunderthisPolicy.InsucheventtheInsuredsherebywaiveandreleaseanyautomaticstayorinjunctioninsuchproceedingwhichmayapplytothisPolicyoritsproceedsandagreenottoopposeorobjecttoanyeffortsbytheInsureroranyInsuredstoobtainrelieffromanysuchstayorinjunction.
SectionXXIV Headings
ThedescriptionsintheheadingsofthisPolicyformnopartofthetermsandconditionsofthecoverageunderthisPolicy.
SectionXXV EntireAgreement
ByacceptanceofthisPolicy,allInsuredsandtheInsureragreethatthisPolicy(includingtheDeclarationsandApplication)andanywrittenendorsementsattachedheretoconstitutetheentireagreementbetweentheparties.Theterms,conditionsandlimitationsofthisPolicycanbewaivedorchangedonlybywrittenendorsementhereto.
SectionXXVI Authorization
ByacceptanceofthisPolicy,theParentCompanyagreestoactonbehalfofallInsuredswithrespecttothegivingandreceivingofanynoticeprovideforinthisPolicy(exceptthegivingofnoticetoapplyforanyDiscoveryPeriod),thepaymentofpremiumsandthereceiptofanyreturnpremiumsthatmaybecomedueunderthisPolicy,andtheagreementtoandacceptanceofendorsements,andtheInsuredsagreethattheParentCompanyshallactontheirbehalf.
Page15|EP-BPL-001-08/2015
