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2018/19 Crime Insurance Policy
THE HARTFORD CRIMESHIELDsm ADVANCED DECLARATIONS THEaJ HARTFORD HARTFORD FIRE INSURANCE CO. HARTFORD PLAZA HARTFORD, CT 06115, A stock insurance company, herein called the Insurer Policy Number: 72 FA 0267254-18 ITEM 1. Named Insured: CITY OF LA QUINTA 2. Address 78-495 CALLE TAMPICO LA QUINTA, CA 92253 Producer: Code, Name and Address: 86925 NFP PROPERTY & CASUALTY INS SV 1551 NORTH TUSTIN AVE STE 500 SANTA ANA, CA 92705 ITEM 3. Policy Period: From 12:01 a.m. on 12/03/18 Inception Date To 12:01 a.m. on 12/03/19 Expiration Date �Standard_Time at ypur mailing address). ITEM 4. Coverages, Limits of Insurance and Deductibles: Only Those Insuring Agreements That Are Designated With An "X" Are Included Under This Policy Limit of Deductible Insurance Amount ® Insuring Agreement 1 Employee Theft $1,000,000 $5,000 ❑ Insuring Agreement 2 Employee Theft Client Premises $N/A $N/A ® Insuring Agreement 3 Computer And Funds Transfer Fraud $1,000,000 $5,000 ❑ Insuring Agreement 4 Inside The Premises Money, $N/A $N/A Securities and Other Property ❑ Insuring Agreement 5 Outside The Premises Money, $N/A $N/A Securities and Other Property ® Insuring Agreement 6 Depositors Forgery or Alteration $1,000,000 $5,000 ❑ Insuring Agreement 7 Credit, Debit Or Charge Card Forgery $N/A $N/A ® Insuring Agreement 8 Money Orders And Counterfeit $50,000 $0 Currency ® Insuring Agreement 9 Investigative Expenses $25,000 $1,000 ® Insuring Agreement 10 Computer Systems Restoration $25,000 $1,000 Expenses ® Insuring Agreement 11 Identity Recovery Expenses $25,000 $0 Reimbursement ITEM 5. Form numbers of Endorsements Forming Part of this Policy When Issued: CA 00 H002 00 0909 © 2009, The Hartford Page 1 of 2 SEE FORM GU207 (SCHEDULE OF FORMS AND ENDORSEMENTS) ITEM 6. Cancellation of Prior Insurance: By acceptance of this Policy the "Insured" gives the Insurer notice cancelling prior policies or bonds numbered: 72 FA 0267254 the cancellations to be effective at the time this Policy becomes effective. ITEM 7. ADDRESS FOR NOTICES TO THE INSURER (A) For Claims: (B) For other than Claims: via mail: The Hartford Financial Products Claim Department via mail: The Hartford 277 Park Avenue, 15th Floor 277 Park Avenue, 15th Floor New York, NY 10172 New York, NY 10172 via email: HFPCIaim he artford.com via email: HFPExpress thehartford.com via fax: (917) 464-6000 via fax: 866-586-4550 Authorized Representative 11 /08/18 Date CA 00 H002 00 0909 © 2009, The Hartford Page 2 of 2 THE HARTFORD CRIMESHIELDsM ADVANCED I. CONSIDERATION CLAUSE In exchange for the payment of premium and subject to the Declarations, Insuring Agreements, Exclusions, General Conditions, Definitions and terms of this Policy, the Insurer and "Insured" agree as follows: ONLY THOSE INSURING AGREEMENTS THAT ARE DESIGNATED WITH AN "X" ON THE POLICY DECLARATIONS PAGE ARE INCLUDED UNDER THIS POLICY. II. INSURING AGREEMENTS INSURING AGREEMENT 1. - EMPLOYEE THEFT The Insurer will pay for loss of or damage to "money", "securities" and "other property" incurred by the "Insured" which results directly from "theft" by an "employee", whether or not identifiable, while acting alone or in collusion with other persons. INSURING AGREEMENT 2. - EMPLOYEE THEFT CLIENT PREMISES The Insurer will pay for loss of or damage to "money", "securities" and "other property" sustained by the "Insured's" "client" when such loss results directly from "theft" on said "client's premises" by the "Insured's" identified "employee". INSURING AGREEMENT 3. - Computer And Funds Transfer Fraud 1. The Insurer will pay for loss of and loss from damage to "money", "securities" and "other property" following and directly related to the use of any computer to fraudulently cause a transfer of such "money", "securities" and "other property"" from inside the "premises" or "banking premises": a. to a person (other than a "messenger") outside those "premises"; or b. to a place outside those "premises". 2. The Insurer will pay for loss of "money" or "securities" through "funds transfer fraud" resulting directly from "fraudulent transfer instructions" communicated to a "financial institution" and instructing such institution to pay, deliver, or transfer "money" or "securities" from the "Insured's" "transfer account". INSURING AGREEMENT 4. - INSIDE THE PREMISES Money, Securities and Other Property The Insurer will pay for loss of "money" and "securities" inside the "premises" or "banking premises" resulting directly from "theft", disappearance or destruction. 2. The Insurer will pay for loss of or damage to "other property": a. inside the "premises" resulting directly from an actual or attempted "robbery" of a "custodian"; or b. inside the "premises" in a safe or vault resulting directly from an actual or attempted "safe burglary". 3. The Insurer will pay for loss from.damage to the "premises" or its exterior resulting from an actual or attempted: a. "theft" of "money" or "securities"; or b. "robbery" or "safe burglary" of "other property" if the "Insured" is the owner of the "premises" or is liable for damage to it. CA 00 H003 00 0909 © 2009, The Hartford Page 1 of 20 72 FA 0267254-18 12/03/18 4. The Insurer will pay for loss of or damage to a locked safe, vault, cash register, cash box or cash drawer located inside the "premises" resulting directly from an actual or attempted "theft" or unlawful entry into those containers. INSURING AGREEMENT 5. - OUTSIDE THE PREMISES Money, Securities and Other Property 1. The Insurer will pay for loss of "money" and "securities" outside the "premises" in the care and custody of a "messenger" or an armored motor vehicle company resulting directly from "theft", disappearance or destruction. 2. The Insurer will pay for loss of or damage to "other property" outside the "premises" in the care and custody of a "messenger" or an armored motor vehicle company resulting directly from an actual or attempted "robbery". INSURING AGREEMENT 6. - DEPOSITORS FORGERY OR ALTERATION 1. The Insurer will pay for loss resulting directly from "forgery" or alteration of checks, drafts, promissory notes, or similar written promises, orders or directions to pay a sum certain in "money" that are: a. made or drawn upon the "Insured"; or b. made or drawn by one acting as the "Insured's" agent and drawn on the "Insured's" account or that are purported to have been so made or drawn. 2. The Insurer will treat mechanically or electronically produced or reproduced signatures the same as handwritten signatures. 3. If the "Insured" is sued for refusing to pay any instrument in 1. above, on the basis that it has been forged or altered and the "Insured" has the Insurer's written consent to defend against that suit, the Insurer will pay for any reasonable legal expenses that the "Insured" incurs and pays in such defense. The amount that the Insurer will pay is in addition to the Limit of Insurance applicable to this Insuring Agreement. If a Deductible Amount applies to this Insuring Agreement, the Insurer will also apply it to the amount of legal expenses incurred in this Insuring Agreement. 4. The " Insured" must include with the "Insured's" proof of loss any instrument involved in that loss, or, if that is not possible, an affidavit setting forth the amount and cause of loss and describing both sides of said instrument. INSURING AGREEMENT 7. - CREDIT, DEBIT OR CHARGE CARD FORGERY The Insurer will pay for loss which results directly from forgery or alteration of written instruments required in conjunction with any credit, debit, or charge card issued to the "Insured" or any "employee" for business use. INSURING AGREEMENT 8. - MONEY ORDERS AND COUNTERFEIT CURRENCY 1. The Insurer will pay for loss resulting directly from the "Insureds" having accepted in good faith and in the regular course of business, in exchange for merchandise, "money" or services: a. money orders issued by any post office, express company or bank in any country that are not paid upon presentation; or b. "counterfeit" paper currency of any country that is acquired during the regular course of business. Unless otherwise shown in the Declarations, the Limit of Insurance under this Insuring Agreement is $50,000 and there is no deductible applying to loss covered under this Insuring Agreement. CA 00 H003 00 0909 © 2009, The Hartford Page 2 of 20 72 FA 0267254-18 12/03/18 INSURING AGREEMENT 9 - INVESTIGATIVE EXPENSES The Insurer will pay for reasonable "investigative expenses" incurred and paid by the "Insured" per "occurrence" to establish the existence and determine the amount of loss covered under Insuring Agreements 1. through 8. if elected, provided that the amount of direct covered loss exceeds the Deductible Amount applicable to such covered loss. INSURING AGREEMENT 10. - COMPUTER SYSTEMS RESTORATION EXPENSES The Insurer will pay for "computer systems restoration expense" resulting directly from any loss covered under INSURING AGREEMENT 1. - EMPLOYEE THEFT, INSURING AGREEMENT 2. - EMPLOYEE THEFT - CLIENT PREMISES or INSURING AGREEMENT 3. - COMPUTER AND FUNDS TRANSFER FRAUD incurred by the "Insured" but only if such covered loss is in excess of the Deductible applicable to such covered loss. INSURING AGREEMENT 11. - IDENTITY RECOVERY EXPENSES REIMBURSEMENT The Insurerwill provide reimbursementof necessary and reasonable "identity recovery expenses" incurred as a direct result of the "identity theft" provided that all of the following requirements are met: 1. There has been an "identity theft" involving the personal identity of an "identity recovery insured" under this policy; and 2. Such "identity theft" is first discovered by the "identity recovery insured" during the "policy period" for which this Identity Recovery Expenses Reimbursement coverage is applicable; and 3. Such "identity theft" is reported to the Insurer as soon as practicable but in no event later than 60 days after it is first discovered by the "identity recovery insured." Ill. LIMIT OF INSURANCE A. The most that the Insurer will pay for loss and expense in any one 'occurrence" is the applicable Limit of Insurance shown in the Declarations. B. INSURING AGREEMENT 11. IDENTITY RECOVERY EXPENSES REIMBURSEMENT coverage is subject to the limit set forth on the Declarations page. 1. Legal costs as provided under paragraph d. of the definition of "identity recovery expenses" are part of, and not in addition to, the INSURING AGREEMENT 11. - IDENTITY RECOVERY EXPENSES REIMBURSEMENT coverage limit. 2. Lost Wages and Child and Elder Care Expenses as provided under paragraphs 5. and 6. of the definition of "identity recovery expenses" are jointly subject to a sublimit of $250 per day, not to exceed $5,000 in total. This sublimit is part of, and not in addition to, the INSURING AGREEMENT 11. - IDENTITY RECOVERY EXPENSES REIMBURSEMENT coverage limit. Coverage is limited to lost wages and expenses incurred within 12 months after the first discovery of the "identity theft" by the "identity recovery insured". 3. Mental Health Counseling as provided under paragraph 7. of the definition of "identity recovery expenses" is subject to a sublimit of $1,000. This sublimit is part of, and not in addition to, the INSURING AGREEMENT 11. - IDENTITY RECOVERY EXPENSES REIMBURSEMENT coverage limit. Coverage is limited to counseling that takes place within 12 months after the first discovery of the "identity theft" by the "identity recovery insured". IV. DEDUCTIBLE The Insurer will not pay for loss or expense in any one "occurrence" unless the amount of the loss or expense exceeds the Deductible Amount shown in the Declarations. The Insurer will then pay the amount of loss or expense in excess of the Deductible Amount, up to the Limit of Insurance. In the event that more than one Deductible Amount could apply to the same loss, only the highest Deductible Amount will be applied. CA 00 H003 00 0909 © 2009, The Hartford Page 3 of 20 72 FA 0267254-18 12/03/18 V. DEFINITIONS A. "Banking premises" means the interior portion of that part of any building occupied by a banking institution or similar safe depository. B. "Client" means any entity for which the "Insured" provides goods or services as specified in a written agreement, but only while the written agreement is in effect. C. "Client's premises" means the interior of that portion of any building that the "Insured's" "client" occupies in conducting its business. D. "Computer System" means: a computer and all input, output, processing, storage, off line media library and communication facilities which are connected to such computer, provided that such computer and facilities are: 1. under the direct operation and control of the "Insured"; 2. at an "electronic data processor" with whom the "Insured" has contracted for data processing services (including other financial institutions); or 3. at an automated clearing house (including a Federal Reserve Bank), or other electronic communications system including but not limited to Fedwire, Clearing House Interbank Payment System (CHIPS) and Society for Worldwide International Financial Telecommunications (SWIFT); E. "Computer Systems Restoration Expenses" means reasonable expenses, incurred by the "Insured" with the Insurer's prior written consent, to reproduce or duplicate damaged or destroyed "data" or computer programs. If such "data" or computer programs cannot be duplicated from other "data" or computer programs, then "computer systems restoration expense" shall also include reasonable costs incurred for computer time, computer programmers, technical experts or consultants to restore such "data" or computer programs to substantially the same level or operational capability existing immediately before the covered loss. "Computer systems restoration expenses" shall not include 1) expenses incurred by any "client" 2) "Investigative Expenses" and 3) the "Insured's" internal corporate costs, including salaries. F. "Controlled Partnership" means a limited partnership in which and so long as the "Named Insured" owns or controls, directly or indirectly, more than 50% of the limited partnership interest and is the sole general partner. G. "Counterfeit" means an imitation of an actual valid original which is intended to deceive and to be taken as an original. H. "Custodian" means the "Insured", or any of the "Insured's" partners, an "LLC Manager", "LLC Member" or any "employee" while having the care and custody of "money", "securities" or "other property" inside the "premises", excluding any person while acting as a "watchperson" or janitor. I. "Data" means a representation of information, knowledge, facts, concepts or instructions which are processed and stored in a "computer system". J. "Electronic Data Processor' means a natural person, partnership or corporation authorized by the "Insured" to perform services as a data processor of the "Insured's" checks or other accounting records (not including preparation or modification of computer software or programs). A Federal Reserve Bank or clearinghouse shall not be construed to be an "electronic data processor". K. "Employee" means 1. a natural person: a. while in the "Insured's" service or for 90 days after termination of such service; and b. whom the "Insured" compensates directly by salary, wages, commissions; and c. whom the "Insured" has the right to direct and control while performing services for the "Insured" CA 00 H003 00 0909 © 2009, The Hartford Page 4 of 20 72 FA 0267254-18 12/03/18 2. a natural person who is: a. a trustee, officer, employee, administrator or manager of any "Employee Benefit Plan(s)" insured under this Policy; or b. the "Insured's" director or trustee while that person is handling "money" or "securities" or "other property" of "Employee Benefit Plan(s)" insured under this Policy; 3. a natural person who is a director or trustee of the "Insured" while performing acts coming within the scope of the usual duties of an "employee" or while acting as a member of any of the "Insured's" elected or appointed committees to perform on the "Insured's" behalf, specific, as distinguished from general, directorial acts; or 4. a natural person who is furnished temporarily to the "Insured" by a temporary employment service firm to substitute for a permanent "employee" as defined in sub -paragraph (1) above, who is on leave, or to meet seasonal or short-term work load conditions and for whom the "Insured" has the right to direct and control while performing services for the "Insured"; provided, however, such persons are excluded while having care and custody of "other property" outside the "premises". 5. a natural person who is leased to the "Insured" under a written agreement between the "Insured" and a labor leasing firm, to perform duties related to the conduct of the "Insured's" business; 6. a natural person who is a non -compensated officer of the "Insured"; 7. a natural person who is a volunteer of the "Insured's" who is not compensated, other than one who is a fund solicitor, while performing services for the "Insured" that are usual to the duties of an "Employee"; or 8. a natural person who is a former "employee", director, partner, member or trustee of the "Insured" retained as a consultant while performing services for the "Insured"; or 9. a natural person who is a guest student or intern of the "Insured" while pursuing studies or duties with the guidance or direction of the "Insured"; or 10. a natural person who is the "Insured's" partner, "LLC Manager" or "LLC Member", but the Insurer will not pay for loss caused by any partner, "LLC Manager" or "LLC Member", unless the amount of the loss exceeds the sum of: a. any amounts the "Insured" owes that partner, "LLC Manager" or "LLC Member"; and b. the value of that partner's partnership interest, or that "LLC Manager's" or "LLC Member's" ownership interest determined by the closing of the "Insured" organization's books on the date of discovery of the loss by the "Insured" organization by anyone not in collusion with the person causing the loss, and c. any applicable Deductible Amount; then the Insurer will pay the amount of loss excess of that sum, up to the Limit of Insurance applicable to INSURING AGREEMENT 1. - EMPLOYEE THEFT. The foregoing notwithstanding, "employee" does NOT mean any agent, broker, factor, commission merchant, consignee, independent contractor or representative of the same general character. L. "Employee Benefit Plan(s)" means any welfare or pension Plan that is subject to the Employee Retirement Income Security Act (ERISA) of 1974, as amended, and which is sponsored by one or more of the "Insureds". M. "Financial institution" means a bank, savings bank, savings and loan association or similar thrift institution, a stockbroker, mutual fund, liquid assets fund, or similar investment institution in which the "Insured" maintains a "transfer account". CA 00 H003 00 0909 © 2009, The Hartford Page 5 of 20 72 FA 0267254-18 12/03/18 N. "Forgery" means the signing of the name of another person or organization with intent to deceive; provided, however, that it does not mean a signature which consists in whole or in part of one's own name signed with or without authority, in any capacity, for any reason. O. "Fraudulent transfer instructions" means: 1. fraudulent electronic, telegraphic, facsimile, cable, teletype or telephone instructions to a "financial institution" to debit a "transfer account" and to pay, transfer or deliver "money" or "securities" from such account and which instructions purport to have been authorized by the "Insured" but which have been fraudulently transmitted by another; or 2 fraudulent written instructions to a "financial institution" to debit a "transfer account" and to pay, transfer or deliver "money" or "securities" from such account through an electronic funds transfer system at specified times or under specified conditions and which instructions purport to have been duly authorized by the "Insured" but which have been fraudulently issued, forged or altered by another. P. "Funds transfer fraud" means "theft" of "money" or "securities" from any of the "Insured's" "transfer accounts" at a "financial institution" and occurring through "fraudulent transfer instructions" communicated to such "financial institution". Q. "Identity Recovery Expenses" means the following when they are reasonable and necessary expenses that are incurred in the United States or Canada as a direct result of an "identity theft": 1 Costs for re -filing applications for loans, grants or other credit instruments that are rejected solely as a result of an "identity theft." 2. Costs for notarizing affidavits or other similar documents, long distance telephone calls and postage solely as a result of the "Insured's" efforts to report an "identity theft" or amend or rectify records as to the "Insured's" true name or identity as a result of an "identity theft." 3. Costs for up to twelve (12) credit reports from established credit bureaus dated within 12 months after the "Insured's" knowledge or discovery of an "identity theft". 4. Legal Costs for reasonable attorney fees incurred, with the Insurer's prior written consent, for: a. defending any civil suit brought against an "identity recovery insured" by a creditor or collection agency or entity acting on behalf of a creditor for non-payment of goods or services or default on a loan as a result of an "identity theft"; and b. removing any civil judgment wrongfully entered against an "identity recovery insured" as a result of the "identity theft." c. costs for challenging the accuracy or completeness of any information in a consumer credit report. 5. Lost Wages Actual lost wages of the "identity recovery insured" for time reasonably and necessarily taken away from work and away from the work premises. Time away from work includes partial or whole work days. Actual lost wages may include payment for vacation days, discretionary days, floating holidays and paid personal days. Actual lost wages does not include sick days or any loss arising from time taken away from self employment. Necessary time off does not include time off to do tasks that could reasonably have been done during non -working hours. 6. Child and Elder Care Expenses Actual costs for supervision of children or elderly or infirm relatives or dependents of the "identity recovery insured" during time reasonably and necessarily taken away from such supervision. Such care must be provided by a professional care provider who is not a relative of the "identity recovery insured". CA 00 H003 00 0909 © 2009, The Hartford Page 6 of 20 72 FA 0267254-18 12/03/18 7. Mental Health Counseling Actual costs for counseling from a licensed mental health professional. Such care must be provided by a professional care provider who is not a relative of the "identity recovery insured". R. "Identity Recovery Insured" means a member of the board of directors, member of the board of trustees, officer, risk manager, in-house general Counsel, "LLC Manager", or "LLC Member". An "identity recovery insured" must always be an individual person. The entity insured under this policy is not an "identity recovery insured." S. "Identity Theft" means the fraudulent use of the social security number or other method of identifying an "identity recovery insured." This includes fraudulently using the personal identity of an "identity recovery insured" to establish credit accounts, secure loans, enter into contracts or commit crimes. "Identity theft" does not include the fraudulent use of a business name, d/b/a or any other method of identifying a business activity. T. `Insured" means the "Named Insured", any "Employee Benefit Plan(s), any "non-ERISA" plan(s) and any "subsidiary" in existence as of the inception date of this Policy or formed by the "Insured" during the Policy Period. U. "Investigative Expenses" means reasonable expenses incurred and paid by the "Insured", with the Insurer's prior written consent, in establishing the existence and amount of any direct loss covered under Insuring Agreements 1 through 8. within this Policy. The reasonableness of such expenses shall be determined by the Insurer and shall not include any of the "Insured's" internal corporate obligations such as "employee" wages or any other internal costs. "Investigative expenses" shall not include expenses incurred by any "client". V. "LLC Manager" means any natural person who was is or becomes a manager, member of the board of managers, or a functionally equivalent executive of a limited liability company. W. "LLC Member" means any natural person who has an ownership interest in a limited liability company. X. "Messenger" means the "Insured", any "LLC Member' or "LLC Manager" or any "employee" while having care and custody of "money", "securities" and "other property" outside the "premises". Y. "Money" means currency, coins and bank notes in current use and having a face value; and traveler's checks, register checks and money orders held for sale to the general public. Z. "Named Insured" means any entity named in ITEM 1 of the Declarations of this Policy. AA. "Non-ERISA Plan(s)" means any plan solely sponsored by any "Insured" that is not subject to the terms of ERISA. BB. "Occurrence" means: 1. as respects INSURING AGREEMENT 1. - EMPLOYEE THEFT and INSURING AGREEMENT 2. - EMPLOYEE THEFT - CLIENT PREMISES, all loss caused by, or involving, one or more "employees", whether the result of a single act or a series of acts. 2. as respects INSURING AGREEMENT 6. - DEPOSITORS FORGERY OR ALTERATION, all loss caused by any person or in which that person is involved, whether the loss involves one or more instruments. 3. as respects INSURING AGREEMENT 11. - IDENTITY RECOVERY EXPENSES REIMBURSEMENT coverage, all acts incidental to an "identity theft", any series of "identity thefts" and all "identity thefts" arising from the same method of operation, whether committed by one or more persons, shall be deemed to arise out of one act and shall be treated as one "identity theft". If an act causes a covered expense under INSURING AGREEMENT 11. - IDENTITY RECOVERY EXPENSES REIMBURSEMENT coverage, to more than one "identity recovery insured", the limit of insurance and deductible for INSURING AGREEMENT 11. - IDENTITY RECOVERY CA 00 H003 00 0909 © 2009, The Hartford Page 7 of 20 72 FA 0267254-18 12/03/18 EXPENSES REIMBURSEMENT set forth on the Declaration page shall be the most the Insurer shall pay for all covered loss in the aggregate. 4. as respects all other Insuring Agreements, an act or series of related acts involving one or more persons; or an act or event or a series of related acts or events not involving any person. CC. "Other Property" means any tangible property other than "money" or "securities" that has intrinsic value but does not include any property excluded under this Policy. DD. "Policy Period" means the period from the Inception Date to the Expiration Date set forth in ITEM 3. of the Declarations at the local time of the address set forth in ITEM 2. of the Declarations, or any earlier termination date EE. "Premises" means the interior of that portion of any building which the "Insured" occupies in conducting the "Insured's" business. FF. "Robbery" means the unlawful taking of "other property" from the care and custody of a person by one who has caused or threatened to cause that person bodily harm, or, committed an obviously unlawful act witnessed by that person, to the deprivation of the "Insured". GG. "Safe burglary" means the unlawful taking of "other property" from within a locked safe or vault by a person unlawfully entering the safe or vault as evidenced by marks of forcible entry upon its exterior, or, the taking of a safe or vault from inside the "premises". HH. "Securities" means negotiable or non-negotiable instruments or contracts representing either "money" or "other property" and includes tokens, tickets, revenue and other stamps (whether represented by actual stamps or unused value in a meter) in current use and evidences of debt issued in connection with credit or charge cards, which cards are not issued by the "Insured"; but "securities" do not include "money". II. "Subsidiary" means any: 1. corporation in which and so long as any "Named Insured" owns or controls, directly or indirectly, more than 50% of the outstanding securities representing the right to vote for the election of the board of directors of such corporation; 2. limited liability company in which and so long as the "Named Insured" owns or controls, directly or indirectly, the right to elect, appoint or designate more than 50% of such entity's managers; 3. corporation operated as a joint venture in which and so long as the "Named Insured" owns or controls, directly or indirectly, exactly 50% of the issued and outstanding voting stock and which, pursuant to a written agreement with the owner(s) of the remaining issued and outstanding voting stock of such corporation, the "Named Insured" solely controls the management and operation of such corporation; or 4. a "Controlled Partnership" With respect to any "subsidiary" which is a joint venture, limited liability company or "Controlled Partnership", loss occurring as a result of "theft" by "employee(s)" shall apply only if such loss results directly from "theft" by "employee(s)" of the "Insured". Loss occurring as a result of "theft" by "employee(s)" of other joint venture, limited liability company or limited partnership participants is not covered under INSURING AGREEMENT 1. EMPLOYEE THEFT of this Policy. JJ. "Theft" means: 1. the unlawful taking of "money", "securities" or "other property" to the deprivation of the "Insured"; 2 solely for the purposes of INSURING AGREEMENT 2. -EMPLOYEE THEFT -CLIENT PREMISES, the unlawful taking of "money", "securities" or "other property"" to the deprivation of the "client". CA 00 H003 00 0909 © 2009, The Hartford Page 8 of 20 72 FA 0267254-18 12/03/18 KK. "Transfer account" means an account maintained by the "Insured" at a "financial institution" from which the "Insured" or the "Insured's" authorized representative may cause the payment, transfer or delivery of "money" or "securities" by any means described in the "fraudulent transfer instructions" definition. ILL. "Watchperson" means any person whom the "Insured" retains specifically to have the care and custody of "other property" inside the "premises" and who has no other duties. VI. EXCLUSIONS (Applying To All Insuring Agreements Unless Otherwise Specified) This Policy Does Not Apply To And The Insurer Will Not Pay For: A. Accounting or Arithmetical Errors or Omissions Loss resulting from accounting or arithmetical errors or omissions. B. Acts Committed By A Named Insured Sole Practitioner Loss resulting from "theft", or any other dishonest or criminal act committed by the "Named Insured" if such "Named Insured" is a sole practitioner, whether acting alone or in collusion with others. C. Acts of Employees, Managers, Directors, Trustees or Representatives Loss resulting from "theft" or any other dishonest or criminal act committed by any of the "Insured's" "employees", managers, directors, trustees or representatives whether acting alone or in collusion with other persons or while performing services for the "Insured" or otherwise except when covered under INSURING AGREEMENT 1. - EMPLOYEE THEFT or INSURING AGREEMENT 2. - EMPLOYEE THEFT - CLIENT PREMISES. D. Employee Cancelled Under Prior Insurance Loss caused by any "employee" of the "Insured" or by any "employee" of a predecessor in interest of the "Insured", for whom similar prior insurance has been cancelled and not reinstated since the last cancellation. E. Exchanges or Purchases Loss resulting from the giving or surrendering of "money", "securities" or "other property" in any exchange or purchase. F. Fire Loss from damage to the "premises" resulting from fire, however caused, except for loss of or damage to "money" or "securities" and loss from damage to a safe or vault under INSURING AGREEMENT 4. - INSIDE THE PREMISES MONEY, SECURITIES AND OTHER PROPERTY. G. Identity Recovery Insured Fraud, Dishonest or Criminal Acts Loss resulting from any fraudulent, dishonest or criminal act by an "identity recovery insured" or any person aiding or abetting an "identity recovery insured", or by any authorized representative of an "identity recovery insured", whether acting alone or in collusion with others. However, this exclusion shall not apply to the interests of an "Insured" who has no knowledge of or involvement in such fraud, dishonesty or criminal act. H. Governmental Action Loss resulting from seizure or destruction of "money", "securities" or "other property" by order of governmental authority. I. Indirect Loss CA 00 H003 00 0909 © 2009, The Hartford Page 9 of 20 72 FA 0267254-18 12/03/18 Loss that is an indirect result of any act or "occurrence" covered by this Policy including but not limited to loss resulting from: 1. the "Insured's" inability to realize income that the "Insured" would have realized had there been no loss of or damage to "money", "securities" or "other property". 2. payment or damages of any type for which the "Insured" is legally liable But the Insurer will pay compensatory damages arising directly from a loss covered under this Policy. 3. payment of costs, fees or other expenses the "Insured" incurs in establishing either the existence of or the amount of loss under this Policy, unless covered under INSURING AGREEMENT 9. - INVESTIGATIVE EXPENSES. J. Intellectual Property, Confidential Information And Electronic Data Loss resulting directly or indirectly from any "theft", disappearance, damage, destruction or disclosure of any intangible property including: 1. trade secrets, proprietary information, confidential information or any copyrights, patents, trademarks, proprietary manufacturing or processing procedures; or 2. secret or confidential information, including but not limited to credit card numbers, bank account numbers or any similar information, unless covered under INSURING AGREEMENT 11. IDENTITY RECOVERY EXPENSES REIMBURSEMENT coverage; or 3. "Data" unless covered under INSURING AGREEMENT 10. - COMPUTER SYSTEMS RESTORATION EXPENSES. K. Inventory Shortages Loss, or that part of any loss, the proof of which as to its existence or amount is dependent upon: 1. any computation or comparison which involves in any manner a profit and loss computation; or 2. an inventory computation. However, where the "Insured" establishes wholly apart from such inventory computations that the "Insured" has sustained a loss covered under this Policy, then the "Insured" may offer the "Insured's" inventory records and actual physical count of inventory in support of the amount of loss claimed. L. Legal Expenses Expenses related to any legal action; provided however that this shall not apply to expenses covered under INSURING AGREEMENT 6. - DEPOSITORS FORGERY OR ALTERATION or INSURING AGREEMENT 11. - IDENTITY RECOVERY EXPENSES REIMBURSEMENT that meet the conditions set forth in VII. GENERAL CONDITIONS, Q. LEGAL EXPENSES. M. Money Operated Devices Loss of "money" and "other property" contained in any money operated device unless the amount of any "money" deposited in it is recorded by a continuous recording instrument in the device. N. Motor Vehicles or Equipment And Accessories Loss of or damage to motor vehicles, trailers, or semi -trailers or equipment or accessories attached to them. This exclusion shall apply only to INSURING AGREEMENT 5. - OUTSIDE THE PREMISES - Money, Securities and Other Property. O. Noncompliance With Credit, Debit Or Charge Card Issuer's Requirements CA 00 H003 00 0909 © 2009, The Hartford Page 10 of 20 72 FA 0267254-18 12/03/18 Loss resulting from any credit, debit or charge card if the" I nsu red" has not complied fully with the provisions, conditions or other terms under which the card was issued. P. Nuclear Loss resulting from nuclear reaction, nuclear radiation, or radioactive contamination, or any related act or incident. Q. Professional or Business Identity Theft. Loss resulting from "theft" of any professional or business identity. R. Risks Inherent in Insurance Operations Loss resulting directly or indirectly from contractual or extra contractual liability sustained by the "Insured" in connection with the issuance of contracts or purported contracts of insurance, indemnity or suretyship. S. Subcontractor and Other Representatives Loss resulting directly or indirectly by any agent, broker, factor, commission merchant, consignee, contractor, independent contractor, subcontractor or other similar representative. This exclusion shall only apply to INSURING AGREEMENT 1. -EMPLOYEE THEFT AND INSURING AGREEMENT 2. - EMPLOYEE THEFT - CLIENT PREMISES. T. Trading Losses Loss resulting directly or indirectly from any authorized or unauthorized trading of "money", "securities" or "other property", whether in the "Insured's" name or in a genuine or fictitious account. U. Transfer or Surrender of Money, Securities or Other Property Loss of or damage to "money", "securities" or "other property" after it has been transferred or surrendered to a person or place outside the "premises" or "banking premises": 1. on the basis of unauthorized instructions; or 2. as a result of a threat to do bodily harm to any person; or 3. as a result of a threat to do damage to any "money", "securities" or "other property". But this Exclusion does not apply under INSURIING AGREEMENT 5. - OUTSIDE THE PREMISES - Money, Securities and Other Property to loss of "money", "securities" and "other property" while outside the "premises" or "banking premises" in the care and custody of a "messenger' if the "Insured": 1. had no knowledge of any threat at the time that the conveyance began; or 2. had knowledge of a threat at the time the conveyance began, but the loss was not related to the threat. V. Vandalism Loss from damages to the "premises" or to the exterior of any safe, vault, cash box, cash drawer or, cash register by vandalism or mischief. W. Voluntary Parting of Title To or Possession of Money, Securities or Other Property CA 00 H003 00 0909 © 2009, The Hartford Page 11 of 20 72 FA 0267254-18 12/03/18 Loss resulting from the "Insured", or anyone acting on the "Insured's" express or implied authority, being induced by any dishonest act to voluntarily part with title to or possession of any "money", "securities" or "other property". This exclusion shall only apply to INSURING AGREEMENT 4. - INSIDE THE PREMISES - Money, Securities and Other Property and INSURING AGREEMENT 5. - OUTSIDE THE PREMISES - Money, Securities and Other Property. X. War and Similar Actions Loss resulting from war, whether or not declared, warlike action, insurrection, rebellion, or revolution, or any related act or incident. VII. GENERAL CONDITIONS A. ARMORED MOTOR VEHICLE COMPANIES Under INSURING AGREEMENT 5. - OUTSIDE THE PREMISES - Money, Securities and Other Property, the Insurer will pay only for the amount of loss the" Insured" cannot recover: 1. under the "Insured's" contract with the armored motor vehicle company; and 2 from any insurance or indemnity carried by or for the benefit of customers of the armored motor vehicle company, or from the armored motor vehicle company. B. CANCELLATION OF POLICY 1. The first "Named Insured" shown in the Declarations may cancel this Policy by mailing or delivering to the Insurer advance written notice of cancellation. The Insurer may cancel this Policy by mailing or delivering to the first "Named Insured" written notice of cancellation at least: a. 10 days before the effective date of cancellation if the Insurer cancels for non-payment of premium; or b. 60 days before the effective date of cancellation if the Insurer cancels for any other reason. 3. The Insurer will mail or deliver its notice to the first "Named Insured's" last mailing address known to the Insurer. 4. Notice of cancellation will state the effective date of cancellation. The "Policy Period" will end on that date. 5. If this Policy is cancelled, the Insurer will send the first "Named Insured" any premium refund due. If the Insurer cancels, the refund will be pro rata. If the first "Named Insured" cancels, the refund may be less than pro rata. The cancellation will be effective even if the Insurer has not made or offered a refund. 6. If notice is mailed, proof of mailing will be sufficient proof of notice. C. CANCELLATION AS TO ANY EMPLOYEE INSURING AGREEMENT 1. - EMPLOYEE THEFT and INSURING AGREEMENT 2. - EMPLOYEE THEFT- CLIENT PREMISES are cancelled as to any "employee": 1. immediately upon discovery by a member of the Risk Management Department or any officer, manager, or supervisor of the "Insured" not in collusion with the "employee" of "theft" or any other fraudulent or dishonest act in excess of $25,000 committed by the "employee" whether before or after becoming employed by the "Insured"; or 2. on the date specified in a notice mailed to the "Insured". The date will be at least 30 days after the date of the mailing. The mailing of notice to the "Insured" at the last mailing address known to the Insurer will be sufficient proof of notice. Delivery of notice is the same as mailing. CA 00 H003 00 0909 © 2009, The Hartford Page 12 of 20 72 FA 0267254-18 12/0.3/18 D. CHANGES This Policy contains all of the agreements between the "Insured" and the Insurer concerning the insurance afforded. The first "Named Insured" shown in the Declarations is authorized to make changes in the terms of this Policy with the Insurer's consent. This Policy's terms can be amended or waived only by endorsement issued by the Insurer and made a part of this Policy. E. CONCEALMENT, MISREPRESENTATION OR FRAUD This Policy is void in any case of fraud by the "Insured" as it relates to this Policy at any time. It is also void if the "Insured", at any time intentionally conceals or misrepresents a material fact, whether in the application or otherwise, concerning: 1. this Policy; 2. the "money", "securities" or "other property" covered under this Policy; 3. the "Insured's" interest in the "money", "securities" or "other property" covered under this Policy; or 4. a claim under this Policy. F. CHANGE IN CONTROL 1. Mergers and Acquisitions If, during the "Policy Period", any "Insured": a. merges with another entity such that the "Insured" is the surviving entity; or b. acquires a "Subsidiary", then coverage shall be provided for such newly merged or acquired entity and its "Subsidiary(ies)" after the effective date of such merger or acquisition. If the revenues of any newly merged or acquired entity or new "Subsidiary" exceed 15% of the total revenues of the "Named Insured" as reflected in its most recent consolidated audited financial statements prior to such merger or acquisition, the "Insureds" shall give the Insurer full details of the transaction in writing as soon as practicable, but in no event later than ninety (90) days after the date of such merger or acquisition and the Insurer shall be entitled to impose such additional terms, conditions, and premium as the Insurer, in its absolute discretion, chooses. There shall be no coverage for any newly merged or acquired entity or any of its subsidiaries unless the "Insureds" comply with the terms of this provision. 2. Takeover Of Named Insured If the "Named Insured" merges into or consolidates with another entity such that the "Named Insured" is not the surviving entity; or a. all, or substantially all of the assets of the "Named Insured" are acquired by another person or entity, group of persons or entities, or persons and entities acting in concert such that the "Named Insured" is not the surviving entity; or b. more than 50% of the securities representing the right to vote for the "Named Insured's" board of directors or managers is acquired by another person or entity, group of persons or entities, or persons and entities acting in concert, then coverage shall immediately terminate as of the date of such transaction and any loss occurring upon or after such date shall not be covered hereunder. CA 00 H003 00 0909 © 2009, The Hartford Page 13 of 20 72 FA 0267254-18 12/03/18 G. DISCOVERY 1. The Insurer will pay for loss which the "Insured" sustains through acts or events committed or occurring at any time and which are discovered by the" Insured" during the "Policy Period" or during the period provided in VII. GENERAL CONDITIONS, L. EXTENDED PERIOD TO DISCOVER LOSS. 2. Discovery of loss occurs when a member of the Risk Management Department or any officer, manager, or supervisor of the "Insured" first becomes aware of facts which would cause a reasonable person to assume that a loss covered by this Policy has been, or may be incurred even though the exact amount or the details of the loss may not then be known. 3. Discovery also occurs when the "Insured" receives notice of an actual or potential claim against the "Insured" alleging facts, which if true, would constitute a covered loss under this Policy. 4. No coverage will be available under this Policy for any loss which the "Insured" is aware of prior to the inception date of this Policy. 5. Regardless of the number of claims, the applicable limit of insurance set forth on the Declarations for INSURING AGREEMENT 11. - IDENTITY RECOVERY EXPENSES REIMBURSEMENT is the most the Insurer will pay per "occurrence" for the total of all loss or expense arising out of all "identity thefts" which are first discovered by the "identity recovery insured" during a 12-month period starting with the beginning of the present annual policy period. If an "identity theft" is first discovered in one policy period and continues into other policy periods, all loss and expense arising from such "identity theft" will be subject to the aggregate limit applicable to the policy period when the "identity theft" was first discovered. H. DISCOVERY SUPERSEDING LOSS SUSTAINED COVERAGE LIABILITY FOR PRIOR LOSSES If this Policy has replaced similar prior insurance written by a company other than the Insurer, and such other insurance provided a period of time to discover loss occurring prior to the termination or cancellation of that coverage, and a loss is discovered within the period provided by prior insurance to discover losses, the Insurer will not pay for such loss unless the amount exceeds the Limit of Insurance under said prior Policy. The Insurer will then only pay the "Insured" for any excess loss subject to the Insuring Agreements, Exclusions and General Conditions of this Policy. 2. Any payment that the Insurer makes to the "Insured" under this insurance shall not exceed the difference between the amount of insurance under the "Insured's" prior Policy and the Limit of Insurance shown in the Declarations and the Insurer will not apply its Deductible Amount to any excess loss payment. I. DUTIES IN THE EVENT OF LOSS After a member of the Risk Management Department or an officer, manager or supervisor of the "Insured" discovers a loss or a situation which may result in a loss of or damage to "money", "securities" or "other property", the "Insured" must: 1. notify the Insurer as soon as possible but no later than 90 days after discovery of loss. 2. submit to examination under oath at the Insurer's request and give the Insurer a signed statement. 3. give the Insurer a detailed, sworn proof of loss within 120 days. 4. cooperate with the Insurer in the investigation and settlement of any claim. 5. with respect to INSURING AGREEMENT 4. -INSIDE THE PREMISES -Money, Securities and Other Property and INSURING AGREEMENT 5. - OUTSIDE THE PREMISES - Money, Securities and Other Property notify the police if the "Insured" has reason to believe that the "Insured's" loss involves a violation of law. CA 00 H003 00 0909 © 2009, The Hartford Page 14 of 20 72 FA 0267254-18 12/03/18 with respect to INSURING AGREEMENT 11. - IDENTITY RECOVERY EXPENSES REIMBURSEMENT coverage, the "identity recovery insured" must send to the Insurer, within 60 days after its request, receipts, bills or other records that support the "Insured's" claim for "identity recovery expenses." J. EMPLOYEE BENEFIT PLANS In compliance with certain provisions of the Employee Retirement Income Security Act (ERISA): 1. The Insurer will pay for loss of or damage to "money", "securities" or "other property" of any "Employee Benefit Plan(s)" sponsored exclusively by the "Insured" resulting directly from "theft" by an "employee". In no event shall coverage for any "Employee Benefit Plan(s)" be more than the Limit of Insurance shown on the Declarations under ITEM 4., INSURING AGREEMENT 1. - EMPLOYEE THEFT. Such limit shall be a part of and not in addition to the Limit of Insurance for INSURING AGREEMENT 1. - EMPLOYEE THEFT stated on the Declarations. 2. If any one or more "Employee Benefit Plans" are insured jointly with any other entity under this Policy, the "Insured" or the plan administrator must select a Limit of Insurance for INSURING AGREEMENT 1. - EMPLOYEE THEFT that is sufficient to provide a Limit of Insurance for each "Employee Benefit Plans" which is at least equal to that required if each Plan were separately insured. 3. Any payments the Insurer makes to the "Named Insured" for loss sustained by any "Employee Benefit Plan" will be held by that "Named Insured" for the use and benefit of the "Employee Benefit Plan" sustaining the loss. 4. If two or more "Employee Benefit Plans" are insured under this Policy, any payment which the Insurer makes for loss sustained by two or more "Employee Benefit Plans", or of commingled funds or "other property" of two or more "Employee Benefit Plans", which arises out of one "occurrence", is to be shared by each "Employee Benefit Plan" sustaining loss in the proportion that the Limit of Insurance required for each "Employee Benefit" Plan bears to the total of those limits 5. The Deductible provision which applies to INSURING AGREEMENT 1. - EMPLOYEE THEFT shall not apply to loss which is sustained by any "Employee Benefit Plan(s)" subject to ERISA and which plan is covered under this insurance. K. EXAMINATION OF The Insured'S BOOKS AND RECORDS 1. The Insurer may examine and audit the "Insured's" books and records as they relate to this Policy at any time during the "Policy Period" and up to three years afterward. 2. The Insurer may also examine and audit the books and records of any organization which the "Insured" newly acquired and that is deemed to be an "Insured" under this Policy. L. EXTENDED PERIOD TO DISCOVER LOSS The Insurer will pay for loss which the "Insured" sustained prior to the effective date of termination or cancellation of this insurance, which is discovered by the" Insured": 1. no later than 60 days from the date of the termination, cancellation or non -renewal; and 2. as respects any "Employee Benefit Plan(s)", no later than 1 year from the date of that termination, cancellation or non -renewal. However, this extended period to discover loss terminates immediately upon the effective date of any other insurance obtained by the "Insured" to replace, in whole or in part, the insurance afforded by this Policy, whether or not such other insurance provides coverage for loss sustained prior to its effective date. CA 00 H003 00 0909 C 2009, The Hartford Page 15 of 20 72 FA 0267254-18 12/03/18 M. FACSIMILE SIGNATURES The Insurer will treat mechanically reproduced facsimile signatures the same as handwritten signatures. N. INSPECTION AND SURVEYS 1. The Insurer has the right but is not obligated to: a. make inspections and surveys at any time; b. give the "Insured" reports on the conditions the Insurer finds; and c. recommend changes. 2 Any inspections, surveys, reports or recommendations relate only to insurability and the premiums to be charged. The Insurer does not make safety inspections. The Insurer does not undertake to perform the duty of any person or organization to provide for the health or the safety of workers or the public. And, the Insurer does not warrant that conditions: a. are safe or healthful; or b. comply with laws, regulations, codes or standards. 3. This condition applies not only to the Insurer, but also to any rating, advisory, rate service or similar organization which makes insurance inspections, surveys, reports or recommendations. O. JOINT INSURED 1. If more than one "Named Insured" is named in the Declarations, the first "Named Insured" will act for itself and for every other "Insured" for all purposes of this Policy. If the first "Named Insured" ceases to be covered, then the next "Insured" will become the first "Named Insured". 2. If any "Insured", "LLC Manager" or "LLC Member" or officer of an "Insured" has knowledge of any information relevant to this Policy, that knowledge is considered to be knowledge of every "Insured". 3. An "employee" of any "Insured" is considered to be an "employee" of every "Insured". 4. If this Policy or any of its Insuring Agreements is cancelled, terminated or non -renewed as to any "Insured", loss sustained by that "Insured" is covered only if discovered by the" Insured" during the period of time provided in VII. GENERAL CONDITIONS, L. EXTENDED PERIOD TO DISCOVER LOSS. This extended period to discover loss also terminates in accordance with paragraph 2 of that condition. 5. The Insurer will not pay a greater amount for loss sustained by more than one "Insured" than the Insurer would pay if all of the loss had been sustained by one "Insured". P. LEGAL ACTION AGAINST US The "Insured" may not bring any legal action against the Insurer involving loss: 1. unless the "Insured" has complied with all the terms of this Policy; and 2. until 90 days after the "Insured" has filed proof of loss with the Insurer; and 3. unless such action is brought within 2 years from the date that the "Insured" discovers such loss Q. LEGAL EXPENSES The "Insured" shall immediately notify the Insurer of any claim or suit generating such expenses and shall not settle such claim or suit, or incur any related costs or expenses, without the Insurer's prior written authorization, nor shall CA 00 H003 00 0909 © 2009, The Hartford Page 16 of 20 72 FA 0267254-18 12/03/18 the "Insured" admit liability in any such claim or suit. The Insurer shall have no duty to defend any such claim or suit, but shall have the right to investigate, negotiate or settle any such claim or suit or to take over the conduct of the defense thereof. Moreover, if, in the Insurer's discretion, the Insurer advances payments for such suit, the Insurer may require a written undertaking, on its terms and conditions, guaranteeing the repayment of any expenses it pays that are determined to be not covered hereunder. R. LOSS COVERED UNDER MORE THAN ONE INSURING AGREEMENT OF THIS POLICY If two or more Insuring Agreements of this Policy apply to the same loss, the Insurer will pay the lesser of: 1. the actual amount of loss; or 2. the sum of the Limits of Insurance applicable to those Insuring Agreements. S. NON ACCUMULATION OF LIMIT OF INSURANCE Regardless of the number of years this Policy remains in force or the number of premiums paid, no Limit of Insurance cumulates from year to year or "Policy Period" to "Policy Period". T. OTHER INSURANCE 1. This Policy does not apply to loss recoverable or recovered under other insurance or indemnity. If the limit of the other insurance or indemnity is insufficient to cover the entire amount of the loss, this Policy will apply to that part of the loss, other than that falling within any Deductible Amount, not recoverable or recovered under the other insurance or indemnity. However, this Policy will not apply to the amount of loss that is more than the applicable Limit of Insurance shown in the Declarations. U. OWNERSHIP OF PROPERTY; INTERESTS COVERED 1. Solely for purposes of INSURING AGREEMENT 1. - EMPLOYEE THEFT and INSURING AGREEMENTS 3. through 8 , the property covered under this Policy is limited to "money", "securities" or "other property": a. that the "Insured" owns or leases; or b. that is owned by the "Insured's" "client" and which the "Insured" holds on its "premises"; or c. which is in the custody of one acting as the "Insured's" "messenger" and while such "money", "securities" or "other property" is in transit; or d. for which the "Insured" is legally liable, except for loss covered under INSURING AGREEMENT 2. EMPLOYEE THEFT - CLIENT PREMISES Provided that the Insurer's liability will not apply to damage to the "premises" unless the "Named Insured" is the owner of such "premises" or is legally liable for such damage. Notwithstanding the above, this Policy is for the "Insured's" benefit alone and no other person or organization has any rights or benefits. Any claim for a loss of "client" "money", "securities" or "other property" occurring on the "Insured's" "premises" or while in transit in the custody of a "messenger" may only be made by the "Insured" in the "Insured's" proof of loss. 2. Solely for purposes of INSURING AGREEMENT 2. -EMPLOYEE THEFT -CLIENT PREMISES, the property covered under this Policy is limited to "money", "securities" and "other property": a. that the "Insured's" "client" owns or leases; or CA 00 H003 00 0909 © 2009, The Hartford Page 17 of 20 72 FA 0267254-18 12/03/18 b. that is owned or leased by a customer of the "Insured's" "client" or c. for which the "Insured's" "client" is legally liable; but only for "theft" that occurs and causes loss during the time the "Insured's" identified "employee" is engaged pursuant to a written agreement to perform services on the "client's premises". Notwithstanding the above, this Policy is for the "Insured's" benefit alone and no other person or organization has any rights or benefits, including the "client". Any claim for loss of "money", "securities" or "other property" sustained by the "client" or customer of such "client" and caused by "theft" by an "employee" shall be made by the "Insured" in the "Insured's" proof of loss V. PREMIUMS The first "Named Insured" is responsible for the payment of all premiums and will be the payee for all return premiums the Insurer pays W. RECORDS The "Insured" must keep records of all "money", "securities" and "other property" covered under this Policy so the Insurer can verify the existence, cause and amount of any loss. X. RECOVERIES 1. Any recoveries made before the resolution of all or any part of a claim under this Policy shall be distributed/ applied in the following order of priority: a. to the party (either the "Insured" or the Insurer) to reimburse it for the reasonable and necessary costs of obtaining the recovery; and then b. to the "Insured" to reduce the amount of covered loss. 2. Any recoveries made after the resolution of all or any part of a claim under this Policy shall be distributed/applied in the following order of priority: a. to reimburse the party (either the "Insured" or the Insurer) for the reasonable and necessary costs of obtaining the recovery; and then b. to the" Insured", until reimbursed for any excess covered loss sustained that exceeds the Limit of Insurance and the Deductible Amount, if any; and then c. to the Insurer, until reimbursed for the amount paid; and then d. to the "Insured", until reimbursed for that part of the loss equal to the Deductible Amount, if any; and then e. to the "Insured" for any loss not covered. 3. Recoveries do not include any recovery: a. from insurance, suretyship, reinsurance, security or indemnity taken for the Insurer's benefit; or b. of original securities after duplicates of them have been issued. Y. SPECIAL LIMIT OF INSURANCE FOR SPECIFIED PROPERTY (Insuring Agreement 4.) The Insurer will pay no more than $25,000. for any one "occurrence" of loss of or damage to: CA 00 H003 00 0909 © 2009, The Hartford Page 18 of 20 72 FA 0267254-18 12/03/18 1. precious metals, precious or semi-precious stones, pearls, furs or completed or partially completed articles made of or containing such materials that constitute the principal value of such articles; or 2. manuscripts, drawings or records of any kind or the cost of reconstructing them or reproducing any information contained in them. Z. TERRITORY this Policy covers acts committed or events occurring anywhere in the world pursuant to VII. GENERAL CONDITIONS, F. CHANGE IN CONTROL. AA. TRANSFER OF THE INSURED'S RIGHTS AND DUTIES UNDER THIS POLICY 1. The "Insured's" rights and duties under this Policy may not be transferred without the Insurer's written consent except in the case of death of an individual "Insured". 2. If the "Insured" dies, the "Insured's" rights and duties will be transferred to the "Insured's" legal representative but only while acting within the scope of duties as the "Insured's" legal representative. Until the "Insured's" legal representative is appointed, anyone having proper temporary custody of the "Insured's" "money", "securities" and "other property" will have the "Insured's" rights and duties but only with respect to that "money", "securities" and "other property". BB. TRANSFER OF THE INSURED'S RIGHTS OF RECOVERY AGAINST OTHERS TO US The "Insured" must transfer to the Insurer all the "Insured's" rights of recovery against any person or organization for any loss the "Insured" sustained and for which the Insurer has paid or settled. The "Insured" must also do everything necessary to secure those rights and do nothing after loss to impair them. CC. VALUATION 1. Subject to the applicable Limit of Insurance, The Insurer will pay for: a. loss of "money" but only up to and including its face value. The Insurer may, at its option, pay for a loss of "money" issued by any country other than the United States of America in either the face value in the "money" issued in that country, or, in the United States of America dollar equivalent determined by the rate of exchange as stated in The Wall Street Journal on the day that the loss occurred. b. loss of "securities" but only up to and including their value as stated in The Wall Street Journal at the close of business on the day that the loss was discovered. But, the Insurer may, at its option, 1) pay the value of such "securities", 2) replace them in kind in which event the "Insured" must assign to the Insurer all the "Insured's" rights, title and interest in and to those "securities" or 3) pay the cost of any Lost Securities Bond required in connection with issuing duplicates of the "securities". However, the Insurer will be liable only for the payment of so much of the cost of the bond as would be charged for a bond having a penalty not exceeding the lesser of: i. the value of the "securities" as stated in The Wall Street Journal at the close of the business on the day the loss was discovered; or ii. the Limit of Insurance. c. loss of or damage to "other property" or loss from damage to the "premises" or its exterior for the replacement cost of the "other property" without deduction for depreciation, subject to 2. below. However, the Insurer will not pay for more than the lesser of : i. the Limit of Insurance applicable to the lost or damaged "other property"; or ii_ the cost to replace the lost or damaged "other property" with "other property" of comparable material and quality and used for the same purpose; or CA 00 H003 00 0909 © 2009, The Hartford Page 19 of 20 72 FA 0267254-18 12/03/18 iii. the amount that the "Insured" actually spends that is necessary to repair or replace the lost or damaged "other property". 2. The Insurer will not pay on a replacement cost basis for any loss or damage: a. until the lost or damaged 'other property" is actually repaired or replaced; and b. unless the repair or replacement is made as soon as reasonably possible after the loss or damage. If the lost or damaged 'other property" is not repaired or replaced, the Insurer will pay based on actual cash value. 3. The Insurer may, at its option, pay for loss of or damage to "other property" other than "money" in the "money" of the country in which the loss occurred; or in the United States of America dollar equivalent of the "money" of the country where the loss occurred determined by the rate of exchange on the day the loss was discovered. Any "other property" that the Insurer pays for or replaces becomes 'other property" of the Insurer CA 00 H003 00 0909 © 2009, The Hartford Page 20 of 20 72 FA 0267254-18 12/03/18 GU207 (6-78) ENDORSEMENT This endorsement, effective on 12/03/18 at 12:01 A.M standard time, forms a part of Policy No. 72 FA 0267254-18 of the HARTFORD FIRE INSURANCE CO. Issued to CITY OF LA QUINTA CAOOH00300 RNOOU00100 1 CAOOH09300 2 CAOOH15500 3 CAOOH15600 4 CA04H00400 5 CA04H00500 6 CA04H10500 (;�aj�va �'E Douglas Elliot, President SCHEDULE 09/09 THE HARTFORD CRIMESHIELD ADVANCED POLICY 05/93 IN WITNESS PAGE 09/09 AMENDMENT FOR GOVERNMENTAL ENTITIES 10/14 DECEPTION FRAUD ENDORSEMENT 10/14 INCLUDE COVERAGE FOR VIRTUAL CURRENCY - SUBLIMITED 09/09 CALIFORNIA AMENDATORY ENDORSEMENT 09/09 CALIFORNIA CANCELLATION AND NONRENEWAL ENDORSEMENT 09/09 CALIFORNIA PREMIUM ENDORSEMENT Rev. Ed. Date (04/02) GU 207 (6-78) THE HARTFORD IN WITNESS WHEREOF, the Company 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 Company. HARTFORD FIRE INSURANCE COMPANY HOME OFFICE — HARTFORD, CONNECTICUT ADMINISTRATIVE OFFICES - HARTFORD, CONNECTICUT (A STOCK INSURANCE COMPANY MEMBER OF THE HARTFORD) S,7 - Lisa Levin, Secretary RN 00 0001 00 0593 ILBP 83 01 11 88 UP 72 FA 0267254-18 12/03/18 Douglas Elliot, President ENDORSEMENT NO:1 This endorsement, effective 12:01 am, 12/03/18 forms part of policy number 72 FA 0267254-18 issued to: CITY OF LA QUINTA by: HARTFORD FIRE INSURANCE CO. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. AMENDMENT FOR GOVERNMENTAL ENTITIES This endorsement modifies insurance provided under the following: THE HARTFORD CRIMESHIELDsm ADVANCED POLICY A. The following exclusions are added to Section VI. EXCLUSIONS: Bonded Employee Loss caused by any "employee" required by law to be individually bonded. Damages Damages for which the "Insured" is legally liable as a result of: 1. the deprivation or violation of the civil rights of any person by an "employee"; or 2. the tortious conduct of an "employee" except conversion of property of other parties held by the "Insured" in any capacity. Treasurer or Tax Collector Loss caused by a treasurer or tax collector by whatever name known. B. The following general conditions are added to Section VII. GENERAL CONDITIONS: INDEMNIFICATION The Insurer will indemnify any of the "Insured's" officials who are required by law to give bonds for the faithful performance of their service against loss through "theft" by an "employee" who serves under them, subject to the Limit of Insurance. SOLE BENEFIT This insurance is for the "Insured's" sole benefit. No legal proceeding of any kind to recover on account of loss under this Policy may be brought by anyone but the "Insured". All other terms and conditions remain unchanged czej&3 S"t Douglas Elliot, President CA 00 H093 00 0909 © 2009, The Hartford Page 1 of 1 ENDORSEMENT NO:2 This endorsement, effective 12:01 am, 12/03/18 forms part of policy number 72 FA 0267254-18 issued to: CITY OF LA QUINTA by: HARTFORD FIRE INSURANCE CO. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. DECEPTION FRAUD ENDORSEMENT This endorsement modifies insurance provided under the following. THE HARTFORD CRIMESH/ELD° ADVANCED POLICY I. Section II. INSURING AGREEMENTS, is amended by the addition of the following. DECEPTION FRAUD The Insurer will pay for loss of "money" or "securities" resulting from "deception fraud," subject to the Limit of Insurance and Deductible stated in the SCHEDULE below. Deception Fraud SCHEDULE Limit of Insurance $15,000 Retention $5,000 The above Limit of Insurance and Deductible apply per "occurrence." II. Section V. DEFINITIONS, is amended by the addition of the following: • "Deception Fraud" means the intentional misleading of a person to induce the "Insured" to part with "money" or "securities" by someone pretending to be an "employee," owner of the "Insured" or one of the following business relations: 1. A "vendor; 2. A "customer;" 3. A "custodian;" or 4. A "messenger." • "Customer" means a natural person or entity for whom the "Insured" provides goods or services. • "Vendor" means a business entity that sells goods or services to the "Insured." III. Section VI. EXCLUSIONS, is amended in the following manner: 1 Exclusion C. is deleted and replaced with the following: Loss resulting from "theft," "deception fraud" or any other dishonest or criminal act committed by any of the "Insured's" "employees", managers, directors, trustees or representatives whether acting alone or in collusion with other persons or while performing services for the "Insured" or otherwise except when covered under INSURING AGREEMENT 1. — EMPLOYEE THEFT or INSURING AGREEMENT 2. — EMPLOYEE THEFT — CLIENT PREMISES. CA 00 H155 00 1014 © 2014, The Hartford Page 1 of 3 ENDORSEMENT NO: 2 2. Exclusion E. is amended to include the following: This exclusion shall not apply to the Deception Fraud Insuring Agreement. 3. The following exclusions are added: • Loss or damage resulting directly or indirectly from "deception fraud." This exclusion shall not apply to the Deception Fraud Insuring Agreement. • Loss or damage: 1. resulting from "theft" by an "employee;" 2. resulting from "forgery" or alteration of: a. checks, drafts, promissory notes, or similar written promises, orders or directions to pay a sum certain in "money;" or b written instruments required in conjunction with any credit, debit or charge card; 3. directly related to the use of any computer to fraudulently cause a transfer of "money" or "securities" from inside the "premises" or "banking premises;" 4. resulting from "funds transfer fraud," 5. resulting from the "Insureds" having accepted in good faith and in the regular course of business, in exchange for merchandise, "money" or services: a. money orders issued by any post office, express company or bank in any country that are not paid upon presentation; or b. "counterfeit" paper currency of any country; 6. resulting from any investments in "securities" or ownership in any corporation, partnership, real property, or similar instrument, whether or not such investment is genuine; 7. resulting from the failure, malfunction, inadequacy or illegitimacy of any product or service, including in the advertisement or labelling thereof; 8. resulting from the failure of any party to perform, in whole or in part, under a contract; 9. resulting from gambling, game of chance, lottery or similar game; and 10. resulting from any party's use or acceptance of any credit card, debit or similar instrument, whether or not genuine. This exclusion shall only apply to the Deception Fraud Insuring Agreement. • Loss of or damage to "other property." This exclusion shall only apply to the Deception Fraud Insuring Agreement. s Loss of "money" or "securities": 1. outside the "premises" in the care and custody of a "messenger" or an armored motor vehicle company; or 2. inside the "premises" or "banking premises" resulting directly from disappearance or destruction. This exclusion shall only apply to the Deception Fraud Insuring Agreement. All other terms and conditions remain unchanged. CA 00 H155 00 1014 © 2014, The Hartford Page 2 of 3 ENDORSEMENT NO: 2 Douglas Elliot, President CA 00 H155 00 1014 © 2014, The Hartford Page 3 of 3 ENDORSEMENT NO:3 This endorsement, effective 12:01 am, 12/03/18 forms part of policy number 72 FA 0267254-18 issued to: CITY OF LA QUINTA by: HARTFORD FIRE INSURANCE CO. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. INCLUDE COVERAGE FOR VIRTUAL CURRENCY - SUBLIMITED This endorsement modifies insurance provided under the following: THE HARTFORD CRIMESH/ELDsm ADVANCED POLICY I. Section III. LIMIT OF INSURANCE, A. is amended by the addition of the following: Any coverage for loss of "virtual currency" under this Policy is subject to a sublimit of $15,000 per "occurrence," which sublimit is part of and not in addition to any other Limit of Insurance applicable under this Policy. II. Section IV. DEDUCTIBLE, is amended by the addition of the following: The foregoing notwithstanding, any coverage for loss of "virtual currency" under this Policy is subject to a Deductible Amount of $5,000 per "occurrence." III. Section V. DEFINITIONS, Y. "Money" is amended by the addition of the following: "Money' shall also include "virtual currency". IV. Section V. DEFINITIONS, is amended by the addition of the following: "Virtual currency' means a virtual or digital representation of value that is not issued by a central bank or a public authority, but may be accepted as a means of payment and can be transferred, stored or traded electronically, whether or not it is recognized as, or exchangeable for, legal tender. V. Section VII. GENERAL CONDITIONS, CC. VALUATION, is amended by the addition of the following v The foregoing notwithstanding, in the event of loss of "virtual currency" covered under this Policy, the Insurer may, at its option: (1) tender the value of the "virtual currency" in actual currency of the country in which the loss was sustained, or in the United States of America dollar equivalent, by taking the weighted average of the values of "virtual currency" in such actual currency as posted on the three largest relevant "virtual currency" exchanges, based on the volume of "virtual currency" exchanged, as of 12:00 PM EST on the day the loss is discovered; or (2) replace the quantity of "virtual currency" of such loss. All other terms and conditions remain unchanged. CA 00 H156 00 1014 © 2014, The Hartford Page 1 of 2 ENDORSEMENT NO: 3 (;�OT113 VJ14�t Douglas Elliot, President CA 00 H156 00 1014 © 2014, The Hartford Page 2 of 2 ENDORSEMENT NO:4 This endorsement, effective 12:01 am, 12/03/18 forms part of policy number 72 FA 0267254-18 issued to: CITY OF LA QUINTA by: HARTFORD FIRE INSURANCE CO. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. CALIFORNIA AMENDATORY ENDORSEMENT This endorsement modifies insurance provided under the following: THE HARTFORD CRIMESH/ELDSm ADVANCED POLICY Section VI1. GENERAL CONDITIONS, paragraph CC. VALUATION, is amended by adding the following Actual cash value is calculated as the amount it would cost to repair or replace 'other property", at the time of loss or damage, with material of like kind and quality, subject to a deduction for deterioration, depreciation and obsolescence. Actual cash value applies to valuation of 'other property" regardless of whether that property has sustained partial or total loss or damage. The actual cash value of the lost or damaged property may be significantly less than its replacement cost. All other terms and conditions remain unchanged. Douglas Elliot, President CA 04 H004 00 0909 © 2009, The Hartford Page 1 of 1 Includes copyrighted material of Insurance Services Office, Inc. with its permission ENDORSEMENT NO:5 This endorsement, effective 12:01 am, 12/03/18 forms part of policy number 72 FA 0267254-18 issued to: CITY OF LA QUINTA by: HARTFORD FIRE INSURANCE CO. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. CALIFORNIA CANCELLATION AND NONRENEWAL ENDORSEMENT This endorsement modifies insurance provided under the following: THE HARTFORD CRIMESH/ELDsm ADVANCED POLICY I. Section VII. GENERAL CONDITIONS, is amended as follows: A. Section VII. GENERAL CONDITIONS, B. CANCELLATION OF POLICY, paragraph 2, is deleted and replaced by the following: 2. All Policies In Effect For More Than 60 Days a. If this Policy has been in effect for more than sixty (60) days, or is a renewal of a Policy the Insurer issued, the Insurer may cancel this Policy only upon the occurrence, after the effective date of the Policy, of one or more of the following: (1) nonpayment of premium, including payment due on a prior Policy the Insurer issued and due during the current Policy term covering the same risks. (2) discovery of fraud or material misrepresentation by: (a) Any "Insured" or its representative in obtaining this insurance; or (b) The "Insured" or the "Insured's" representative in pursuing a claim under this Policy. (3) Ajudgment by a court or an administrative tribunal that the "Insured" has violated a California or Federal law, having as one of its necessary elements an act which materially increases any of the risks insured against (4) Discovery of willful or grossly negligent acts or omissions, or of any violations of state laws or regulations establishing safety standards, by the "Insured" or the "Insured's" representative, which materially increase any of the risks insured against. (5) Failure by the "Insured" or the "Insured's" representative to implement reasonable loss control requirements, agreed to by the "Insured" as a condition of Policy issuance, or which were conditions precedent to the Insurer's use of a particular rate or rating plan, if that failure materially increases any of the risks insured against. (6) A determination by the Commissioner of Insurance that the: (a) loss of, or changes in, the Insurer's reinsurance covering all or part of the risk would threaten the Insurer's financial integrity or solvency; or (b) continuation of the Policy coverage would: CA 04 H005 00 0909 © 2009, The Hartford Page 1 of 3 (Includes copyrighted material of Insurance Services Office, Inc. with its permission) ENDORSEMENT NO: 5 (i) place the Insurer in violation of California law or the laws of the state where the Insurer is domiciled; or (ii) threaten the Insurer's solvency. (7) A change by the "Insured" or the "Insured's" representative in the activities or property of the commercial or industrial enterprise, which results in a materially added, unless the added, increased or changed risk is included in the Policy. b The Insurer will mail or deliver advance written notice of cancellation, stating the reason for cancellation, to the first "Named Insured", and to the producer of record, at least: (1) ten (10) days before the effective date of cancellation if the Insurer cancels for a reason listed in paragraph 2.a (1) or (2). (2) Thirty (30) days before the effective date of cancellation if the Insurer cancels for any other reason listed in paragraph 2 a. B. Section VII. GENERAL CONDITIONS, paragraph B. CANCELLATION OF. POLICY, is amended by adding the following: NONRENEWAL 1. If the Insurer elects not to renew this Policy: a. The Insurer will mail or deliver written notice stating the reason for nonrenewal to the first "Named Insured" shown in the Declarations and to the producer of record, at least sixty (60) days, but not more than one hundred twenty (120) days, before the expiration or anniversary date. b. The Insurer will mail or deliver the Insurer's notice to the first "Named Insured", and to the producer of record, at the mailing address shown in the Policy. 2. The Insurer is not required to send notice of nonrenewal in the following situations: a. If the transfer or renewal of a Policy, without any changes in terms, conditions, or rates, is between the Insurer and a member of the Insurer's insurance group. b. If the Policy has extended for ninety (90) days or less, provided that notice has been given in accordance with Paragraph B.1. above. c. If the "Insured" has obtained replacement coverage, or if the first "Named Insured" has agreed, in writing, within sixty (60) days of the termination of the Policy, to obtain that coverage. d. If the Policy is for a period of no more than sixty (60) days and the "Insured" is notified at the time of issuance that it will not be renewed. e. If the first "Named Insured" requests a change in the terms or conditions or risks covered by the Policy within sixty (60) days of the end of the Policy Period. f If the Insurer has made a written offer to the first "Named Insured", in accordance with the timeframes shown in paragraph B.1 above, to renew the Policy under changed terms or conditions or at an increased premium rate, when the increase exceeds 25%. All other terms and conditions remain unchanged. CA 04 H005 00 0909 © 2009, The Hartford Page 2 of 3 (Includes copyrighted material of Insurance Services Office, Inc. with its permission) ENDORSEMENT NO: 5 Douglas Elliot, President CA 04 H005 00 0909 © 2009, The Hartford Page 3 of 3 (Includes copyrighted material of Insurance Services Office, Inc. with its permission) ENDORSEMENT NO:6 This endorsement, effective 12:01 am, 12/03/18 forms part of policy number 72 FA 0267254-18 issued to: CITY OF LA QUINTA by: HARTFORD FIRE INSURANCE CO THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. CALIFORNIA PREMIUM ENDORSEMENT This endorsement modifies insurance provided under the following: THE HARTFORD CRIMESHIELDsm ADVANCED POLICY This endorsement applies to the Policy and all of the INSURING AGREEMENTS forming part of this Policy. POLICY NO. 72 FA 0267254-18 NAMED INSURED: CITY OF LA QUINTA It is agreed that: 1. In compliance with the ruling of the Commissioner of Insurance of the State of California and the Opinion of the Attorney - General of that State requiring that the premium for all policies be endorsed thereon, the basic premium charged for the attached Policy for the period from: 12/3/2018 to: 12/3/2019 is: Three thousand six hundred and sixty Dollars $3,660 2. This endorsement is effective as of 12:01 a.m. on 12/03/18 All other terms and conditions remain unchanged. Accepted: Signature Waived Douglas Elliot, President , Authorized Representative CA 04 H105 00 0909 © 2009, The Hartford Page 1 of 1 IMPORTANT INFORMATION TO POLICYHOLDERS In the event you need to contact someone about this policy for any reason, please contact your producer. If you have additional questions, you may contact the insurance company issuing this policy at the following address and telephone number: THE HARTFORD PRODUCT SERVICES HARTFORD FINANCIAL PRODUCTS 277 PARK AVENUE 15r" FLOOR NEW YORK, NEW YORK 10172 1-212-277-0400 If you have a problem with your insurance company, its producer or representative that has not been resolved to your satisfaction, please call or write to the Department of Insurance. Consumer Services Division California Department of Insurance 300 South Spring Street 14`h Floor Los Angeles, CA 90013 1-800-927-4357 or-1-213-897-8921 Written correspondence is preferable so that a record of your inquiry can be maintained. When contacting your producer, company or the Bureau of Insurance have your policy number available. ILNP 85 14 03 89 CA EL 04 R111 010505 THE HARTFORD U.S. DEPARTMENT OF THE TREASURY, OFFICE OF FOREIGN ASSETS CONTROL ("OFAC") ADVISORY NOTICE TO POLICYHOLDERS 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 Notice provides information concerning possible impact on your insurance coverage due to directives issued by the United States. Please read this Notice carefully. The Office of Foreign Assets Control ("OFAC") of the U.S. Department of the Treasury administers and enforces economic and trade sanctions based on U.S. foreign policy and national security goals against targeted foreign countries and regimes, terrorists, international narcotics traffickers, those engaged in activities related to the proliferation of weapons of mass destruction, and other threats to the national security, foreign policy or economy of the United States. OFAC acts under Presidential national emergency powers, as well as authority granted by specific legislation, to impose controls on transactions and freeze assets under U.S. jurisdiction. OFAC publishes a list of individuals and companies owned or controlled by, or acting for or on behalf of, targeted countries. It also lists individuals, groups, and entities, such as terrorists and narcotics traffickers designated under programs that are not country -specific. Collectively, such individuals and companies are called "Specially Designated Nationals and Blocked Persons" or "SDNs". Their assets are blocked and U.S. persons are generally prohibited from dealing with them. This list can be located on OFAC's web site at — http//www.treas.gov/ofac. In accordance with OFAC regulations, 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 or is an SDN, as identified by OFAC, the policy is a blocked contract and all dealings with it must involve OFAC. When an insurance policy is considered to be such a blocked or frozen contract, no payments nor premium refunds may be made without authorization from OFAC. HG 00 H129 00 1016 © 2016, The Hartford Page 1 of 1 Producer Compensation Notice You can review and obtain information on The Hartford's producer compensation practices at www.thehartford.com or at 1-800-592-5717. F-5267-0 HR 00 H093 00 0207 © 2007, The Hartford Page 1 of 1 72 FA 0267254-18 12/03/18