ASSOCIATION MANAGEMENT LIABILITY INSURANCE
This is a Claims Made Insurance Policy
Underwriters do hereby agree with the Assured , that in consideration of the premium and the undertaking of the Assured to pay the Deductible as described herein, and in reliance upon the statements in the application attached hereto and made a part hereof, and subject to the Limit of Liability of this Insurance as set forth on the Declaration Page and defined herein, and the exclusions, conditions and other terms of the Policy as follows:
COVERAGE GRANT: To indemnify the Assureds for all Loss Payments and Claims Expenses which they shall become legally obligated to pay by reason of any Wrongful Act committed or alleged to have been committed by them by or on behalf of the Named Assured , PROVIDED ALWAYS THAT:
such Wrongful Act results in a Claim or Claims being first made against the Assured during the Policy Period , and the Assured has no knowledge on the inception date of this Policy of any such Wrongful Act or of a circumstance likely to give rise to a Claim based upon such Wrongful Act .
All Claims arising out of the same Wrongful Act covered hereunder shall be deemed for the purpose of this Insurance to be one Claim and to have been made when the first of such Claims is made.
DISCOVERY: If during the Policy Period the Assured shall become aware of any circumstances which are likely to subsequently give rise to a Claim against the Assured for which insurance would be afforded hereunder and if the Assured shall during the Policy Period herein give written notice to the Underwriters of the Wrongful Act giving rise to the circumstance. the identities of the probable claimants, the injury or damage which has or may result from such Wrongful Act , and how the Assured first became aware of the Wrongful Act and such circumstances, then any Claim which is subsequently made against the Assured arising out of such circumstances shall be deemed to have been made during the Policy Period .
EXTENDED DISCOVERY PERIOD: If Underwriters cancel or do not offer renewal of this Insurance the Named Assured shall have the right, upon payment within 30 days after expiration or cancellation, of an additional premium equal to 100% of the premium specified in the Declaration Page of this Policy , to a one-year Extended Discovery Period . By this Extended Discovery Period , any Claim made against the Assured within one year after the effective date of cancellation or nonrenewal by reason of any Wrongful Act , committed before such cancellation hereof, shall be deemed for the purpose of this Insurance , to have been made during the Policy Period . The Limit of Liability applicable to the Extended Discovery Period shall be only the remaining Limit of Liability available under the Policy and no additional Limit of Liability shall be applicable. Any change in the terms of any renewal of this Policy , including but not limited to any increase in premium and/or Deductible shall not be construed as failure to offer to renew this Policy .
DEFINITIONS: Whenever used in this Policy the following words and phrases have special meaning as follows:
" Assured " shall mean the Named Assured designated on the Declaration Page , its subsidiaries and any persons who were, now are, or shall be directors, officers, employees (whether salaried or not), volunteers, trustees, Committee Members , the estates, heirs or legal representatives of deceased persons who were directors, officers, employees, trustees or Committee Members of the Named Assured at the time of the Wrongful Act upon which a Claim is based, the legal representatives of directors, officers, employees, trustees or Committee Members of the Named Assured in the event of their incompetency, insolvency or bankruptcy; or any person while acting in the course of his duties conducted by him as directed by a salaried officer or by the board of directors for and on behalf of the Named Assured in their capacity as an Association or an Association Management Company.
" Claim " shall mean a written demand received by the Assured for money or services including service of suit or service of demand for arbitration against the Assured . The filing of suit or the filing of demand for arbitration shall not constitute a Claim within the meaning of the Policy .
" Claims Expenses " shall mean all costs, fees and expenses (excluding loss of earnings or income incurred by the Assured and also excluding employee's salaries), incurred with Underwriters ' written consent in the investigation and defense of any Claims insured hereunder.
" Committee Members " shall mean those persons or entities sitting by formal designation, election, or appointment upon duly established committees of the Named Assured which perform, or are intended to perform the services provided by the Named Assured .
" Declaration Page " shall mean the page issued with this Policy which sets forth the Named Assured , Policy Period , Limit of Liability , Deductible , endorsements, premium, taxes and fees.
" Deductible " See section 6 of the Policy .
" Extended Discovery Period " See section 3 of the Policy .
" Limit of Liability " See section 5 of the Policy .
" Loss Payments " shall mean any amount which any Assured is legally obligated to pay for any Claims made against any Assured based upon Wrongful Acts for which coverage is afforded under this Policy and shall include damages, judgments, settlements, interest and awards of attorneys fees or costs.
" Named Assured " shall mean the particular entity(ies) so designated on the Declaration Page .
" Personal Information " means an individual's identity in combination with any one or more of the following:
social security number;
medical or healthcare data, or other protected health information;
drivers license number or state identification number;
account number, credit card number or debit card number in combination with any required security code, access code or password that would permit access to that individual's financial account; or,
other nonpublic Personal Information as defined in a Privacy Regulation .
" Personal Injury " means:
copyright, trademark or trade dress infringement;
false arrest, detention or imprisonment, wrongful entry or eviction or other invasion of the right of private occupance, or malicious prosecution;
libel or slander or other defamatory or disparaging material, or a publication or an utterance in violation of an individual's right of privacy;
violation of a right of privacy or a Privacy Regulation as a result of a breach of the Insured's network security, through hacking, mismanagement, loss or theft of Personal Information , computer hardware, software or personal digital assistant.
" Policy " or " Insurance " shall mean this wording together with the Declaration Page , schedule of security, and endorsements issued in connection herewith, as well as the application form and attachments executed and submitted by the Assured to Underwriters upon which this Insurance is based.
" Policy Period " shall mean the period stated in the Declaration Page or its earlier termination date, if any.
" Privacy Regulation " means the following statutes and regulations associated with the control and use of personally identifiable financial, medical or other sensitive information:
Health Insurance Portability and Accountability Act of 1996 (Public Law 104-191);
Gramm-Leach-Bliley Act of 1999;
the California Security Breach Notification Act (CA SB 1386); and,
other similar state, federal, and foreign identity theft and privacy protection legislation that requires commercial entities that collect Personal Information to post privacy policies, adopt specific privacy controls, or notify individuals in the event that Personal Information has potentially been compromised.
" Underwriters " shall mean those particular Lloyd's of London syndicates listed on the schedule of security issued with this Insurance .
" Wrongful Act " shall mean any actual or alleged negligent act, error, omission, misstatement, misleading statement or Personal Injury in connection with or related to:
the management, administration or operation of the Named Assured ; or
the provision of any service offered by the Named Assured .
LIMIT OF LIABILITY: The total limit of Underwriters ' liability for all Claims during the Policy Period , as covered hereunder, shall never exceed under this Insurance the amount stated on the Declaration Page and the inclusion herein of more than one Assured or the making of Claims by more than one person, firm, corporation or organization shall not operate to increase the said limit of Underwriters ' liability. The Limit of Liability afforded hereunder shall be inclusive of Loss Payments as well as of Claims Expenses whether or not a Loss Payment is involved.
DEDUCTIBLE: The Deductible amount stated on the Declaration Page shall be applicable to each Claim and shall include Loss Payments and Claims Expenses as herein defined. Underwriters may pay any part or all of the Assured's Deductible amount to effect settlement of any Claim or suit or to satisfy Claims Expenses incurred, and upon notification of the action taken, the Named Assured shall promptly reimburse Underwriters for such part of the Deductible as has been paid by the Underwriters .
EXCLUSIONS: This insurance shall not indemnify the Assured in respect of any Loss Payments or Claims Expenses directly or indirectly brought about by, arising out of, or attributable to:
an Assured acting as a director, officer, trustee, partner or employee of any enterprise which is not the Named Assured ;
any dishonest, fraudulent (except if not committed with actual intent to deceive or defraud), criminal, malicious or knowingly wrongful act, error or omission committed or alleged to have been committed by or at the direction of any Assured ; however, notwithstanding the foregoing, the Assured shall be protected under the terms of this Policy as to any Claims upon which suit may be brought against them by reason of any alleged dishonesty on the part of the Assured , unless a judgment or other final adjudication thereof adverse to the Assured shall establish that acts of active and deliberate dishonesty committed by the Assured with actual dishonest purpose and intent were material to the cause of action so adjudicated;
bodily injury, mental anguish, emotional distress, sickness, disease or death of any person, including but not limited to, any obligation for which the Assured or its insurer may be or is liable under any workers' compensation law, unemployment compensation law, employers' liability law, disability benefits law, or under any other similar law, or for any Claim for damage to or destruction of any tangible property, including loss of use thereof, or failure of the Assured or any other person to procure or maintain adequate insurance for the foregoing exposure;
punitive or exemplary damages or fines or penalties imposed by law;
the failure to purchase or maintain insurance or bonds required by law, or established by any regulatory body as a standard;
activities where the Assured acts in any capacity as an insurance agent, insurance broker, or insurance consultant;
However, this exclusion shall not apply where:
the Assured's only involvement with an insurance placement is the endorsement, sponsorship or recommendation of a particular insurance program or provider; and
the Claim in question is not based upon allegations of the insolvency, receivership, bankruptcy, liquidation or financial inability to pay of any insurance company, agent, broker or intermediary.
anti-trust, price fixing or restraint of trade actions;
any actual or alleged violation of the Employee Retirement Income Security Act of 1974, Public law 93-406, commonly referred to as the Pension Reform Act of 1974, and amendments thereto, or similar provisions of any Federal, State or Local Statutory Law or Common Law;
any actual or alleged violation of the Racketeer Influenced and Corrupt Organizations Act, 18 USC Sections 1961 et seq., or any comparable state law, and any amendments thereto, or any rules or regulations promulgated thereunder;
any actual or alleged act or practice which constitutes a violation of individual rights guaranteed by the United States Constitution and Amendments thereto, the provisions of Title 42 of the United States Code as it may be amended or of comparable laws or regulations of any state or political subdivision;
any Assured gaining in fact any personal profit or advantage to which said Assured was not legally entitled;
due to, based upon or arising out of, directly or indirectly, or in any way involving seepage, pollution or contamination arising from any liquid, gaseous or thermal irritant or contaminant including smoke, vapor, soot, fumes, acids, alkalis, chemicals, odors, noise, lead, oil or oil products, radiation, mold, asbestos or asbestos-containing products and waste, and any electric, magnetic or electromagnetic field of any frequency, in or into the atmosphere, or on, upon or into the surface or subsurface of:
soil;
water or watercourse;
objects or any tangible matters.
any actual or alleged insolvency of the Named Assured , and/or any actual or alleged failure of the Named Assured to meet its financial obligations.
any suits brought against the Assured outside of the United States of America or its territories, possessions or Puerto Rico.
NOTICE AND COOPERATION: The Assured shall give, as a condition precedent to their right to be indemnified under this Policy , immediate notice in writing to Underwriters through Dominion Insurance Services of any Claim made against them and sufficient information to identify the claimant and the nature of the alleged Wrongful Act , and shall forward to the Underwriters every demand, notice, summons, or other process received by the Assured or his representatives. The Assured shall cooperate with Underwriters in the investigation and/or defense of such Claim or suit without charge to Underwriters and give to Underwriters such information, documents and written statements as the Underwriters may require.
DEFENSE AND SETTLEMENT: The Assured shall not admit liability for or settle any Claim or incur any costs, charges or expenses in connection therewith without the written consent of Underwriters such consent not to be unreasonably withheld. Underwriters shall be entitled at any time to take over and conduct in the name of the Assured the defense of any Claim . The Underwriters shall not settle any Claim without the consent of the Assured . If, however, the Assured shall refuse to consent to any settlement recommended by the Underwriters and shall elect to contest or continue any legal proceedings in connection with such Claim , then subject to the Limit of Liability of this Insurance the Underwriters ' liability for the Claim shall not exceed the amount for which the Claim could have been settled and also the Claims Expenses incurred with Underwriters consent up to the date of such refusal.
CANCELLATION: This Policy may be canceled by the Named Assured by surrender thereof to the Underwriters or any of its authorized agents or by mailing to the Underwriters written notice stating when thereafter the cancellation shall be effective. This Policy may be canceled by the Underwriters by mailing to the Named Assured at the address shown on the Declaration Page a written notice stating when, not less than thirty (30) days thereafter, such cancellation shall become effective. The time of such surrender or the effective date and hour of cancellation stated in the notice shall terminate the Policy Period . The mailing of such notice as aforesaid, whether by ordinary mail or by certified mail, shall be sufficient proof of such notice. Delivery of such written notice whether by the Named Assured or by the Underwriters , shall be equivalent to mailing. If the Named Assured cancels, earned premium shall be computed in accordance with the attached short rate table and procedure. If Underwriters cancel, earned premium shall be computed pro rata. Premium adjustment may be made either at the time cancellation is effected or as soon as practical thereafter, but payment or tender of unearned premium is not a condition of cancellation by Underwriters .
SUBROGATION: In the event of any Claim under this Policy , the Underwriters shall be subrogated to all the Assured's rights of recovery against any person or organization and the Assured shall execute and deliver instruments and papers including the customary loan receipt and do whatever else is necessary to secure such rights including the right to commence suit in the Assured's name. The Assured shall do nothing after loss to prejudice or waive such rights.
OTHER INSURANCE: The applicable Limit of Liability of this Insurance shall be excess insurance over the Limit of Liability of any other insurance available to the Assured .
FALSE OR FRAUDULENT CLAIMS: If the Assured shall make any Claim knowing same to be false or fraudulent, as regards amount or otherwise, this Insurance shall become void and all Claims hereunder shall be forfeited.
CHANGES: Notice to any agent of Underwriters or knowledge possessed by any agent or by any other person, shall not effect a waiver or a change in any part of this Policy or stop the Underwriters from asserting any right under the terms of the Policy , nor shall the terms of this Policy be waived or changed except by written endorsement signed by Underwriters issued to form a part of this Policy .
CONFORMITY TO STATUTE: Terms of this Policy which are in conflict with the statutes of the state wherein this Policy is issued are hereby amended to conform to such statutes.
SEVERABILITY CLAUSE: It is agreed that the particulars and statements contained in the written application, a copy of which is attached hereto, and the Declaration Page are the basis of this Policy and are to be considered as incorporated in and constituting part of the Policy . As respects the particulars and statements contained in the written application and the Exclusions set forth herein, this Policy shall be construed as a separate agreement with each Assured . Nothing in this paragraph shall be construed to increase the Underwriters' maximum liability as set forth in this Policy .
AUTHORIZATION CLAUSE: By acceptance of this Policy , the Named Assured agrees to act on behalf of all Assureds with respect to giving and receiving of notice of claim or cancellation, the payment of premiums and the receiving of any return premiums that may become due under the Policy , the acceptance of any endorsements issued to form a part hereof of this Policy . The Assureds agree that such Named Assured shall act in their behalf.
SHORT RATE CANCELLATION TABLE
Notwithstanding anything to the contrary contained herein and in consideration of the premium for which this Insurance is written it is agreed that in the event of cancellation thereof by the Assured the Earned Premium shall be computed as follows:
For insurances written for one year:
Days Insurance
in Force Percent of One
Year Premium
Days Insurance
in Force Percent of One
Year Premium
1 - 54 ......................... 25 192 - 196 ......................... 63
55 - 58 ......................... 26 197 - 200 ......................... 64
59 - 62 ......(2 months)...... 27 201 - 205 ......................... 65
63 - 65 ......................... 28 206 - 209 ......................... 66
66 - 69 ......................... 29 210 - 214 ......(7 months)...... 67
70 - 73 ......................... 30 215 - 218 ......................... 68
74 - 76 ......................... 31 219 - 223 ......................... 69
77 - 80 ......................... 32 224 - 228 ......................... 70
81 - 83 ......................... 33 229 - 232 ......................... 71
84 - 87 ......................... 34 233 - 237 ......................... 72
88 - 91 ......(3 months)...... 35 238 - 241 ......................... 73
92 - 94 ......................... 36 242 - 246 ......(8 months)...... 74
95 - 98 ......................... 37 247 - 250 ......................... 75
99 - 102 ......................... 38 251 - 255 ......................... 76
103 - 105 ......................... 39 256 - 260 ......................... 77
106 - 109 ......................... 40 261 - 264 ......................... 78
110 - 113 ......................... 41 265 - 269 ......................... 79
114 - 116 ......................... 42 270 - 273 ......(9 months)...... 80
117 - 120 ......................... 43 274 - 278 ......................... 81
121 - 124 ......(4 months)...... 44 279 - 282 ......................... 82
125 - 127 ......................... 45 283 - 287 ......................... 83
128 - 131 ......................... 46 288 - 291 ......................... 84
132 - 135 ......................... 47 292 - 296 ......................... 85
136 - 138 ......................... 48 297 - 301 ......................... 86
139 - 142 ......................... 49 302 - 305 .....(10 months)..... 87
143 - 146 ......................... 50 306 - 310 ......................... 88
147 - 149 ......................... 51 311 - 314 ......................... 89
150 - 153 ......(5 months)...... 52 315 - 319 ......................... 90
154 - 156 ......................... 53 320 - 323 ......................... 91
157 - 160 ......................... 54 324 - 328 ......................... 92
161 - 164 ......................... 55 329 - 332 ......................... 93
165 - 167 ......................... 56 333 - 337 .....(11 months)..... 94
168 - 171 ......................... 57 338 - 342 ......................... 95
172 - 175 ......................... 58 343 - 346 ......................... 96
176 - 178 ......................... 59 347 - 351 ......................... 97
179 - 182 ......(6 months)...... 60 352 - 355 ......................... 98
183 - 187 ......................... 61 356 - 360 ......................... 99
188 - 191 ......................... 62 361 - 365 .....(12 months)..... 100
For Insurances written for more or less than one year:
If insurance has been in force for 12 months or less, apply the standard short rate table for annual insurances to the full annual premium determined as for an insurance for a term of one year.
If insurance has been in force for more than 12 months:
Determine full annual premium as for an insurance written for a term of one year.
Deduct such premium from the full insurance premium, and on the remainder calculate the pro rata Earned Premium on the basis of the ratio of the length of time beyond one year the insurance has been in force to the length of time beyond one year for which the insurance was originally written.
Add premium produced in accordance with items (a) and (b) to obtain Earned Premium during full period insurance has been in force.
Furthermore and notwithstanding the foregoing, Underwriters shall retain the total premium for this Insurance , such premium to be deemed earned upon inception of the Policy if any Claim or any circumstance that could reasonably be the basis for a Claim is reported to Underwriters under this Insurance on or before such date of cancellation.
AML Wording (03/26)