p80911610_2016.htm - Generated by SEC Publisher for SEC Filing

 

     

FRENKEL BENEFITS, LLC

ATTN:

Martin Kelly

 

601 PLAZA 3, 6TH FL.

 

JERSEY CITY, NJ 07311

 

 

 

 

INSURED:

GENERAL AMERICAN INVESTORS COMPANY INC

PRODUCT:

DFIBond

POLICY NO:

80911610

TRANSACTION:

RENL

 


 

 

                   

 

Chubb Group of Insurance Companies

DECLARATIONS

 

 

 

 

 

 

 

FINANCIAL INSTITUTION INVESTMENT

 

15 Mountain View Road, Warren, New Jersey 07059

COMPANY ASSET PROTECTION BOND

 

NAME OF ASSURED (including its Subsidiaries):

 

 

Bond Number: 80911610

 

GENERAL AMERICAN INVESTORS COMPANY INC

 

 

 

 

 

100 PARK AVENUE, 35TH FLOOR

 

 

 

FEDERAL INSURANCE COMPANY

NEW YORK, NY

 

10017

 

 

 

Incorporated under the laws of Indiana

 

 

 

 

 

 

 

a stock insurance company herein called the COMPANY

 

 

 

 

 

 

 

Capital Center, 251 North Illinois, Suite 1100

 

 

 

 

 

 

 

Indianapolis, IN 46204-1927

 

ITEM 1.

BOND PERIOD: from

12:01 a.m. on

June 15, 2016

 

 

 

 

 

 

to

12:01 a.m. on

June 15, 2017

 

 

 

 

ITEM 2.

LIMITS OF LIABILITY--DEDUCTIBLE AMOUNTS:

 

 

 

 

 

If “Not Covered” is inserted below opposite any specified INSURING CLAUSE, such INSURING CLAUSE and

 

any other reference shall be deemed to be deleted. There shall be no deductible applicable to any loss

 

under INSURING CLAUSE 1. sustained by any Investment Company.

 

 

 

 

 

 

 

SINGLE LOSS

 

DEDUCTIBLE

 

INSURING CLAUSE

 

LIMIT OF LIABILITY

AMOUNT

 

 

1

.

Employee

 

$

2,250,000

 

$

0

 

2

.

On Premises

 

$

2,250,000

 

$

25,000

 

3

.

In Transit

 

$

2,250,000

 

$

25,000

 

4

.

Forgery or Alteration

$

2,250,000

 

$

25,000

 

5

.

Extended Forgery

$

Not Covered

 

$

None

 

6

.

Counterfeit Money

$

2,250,000

 

$

25,000

 

7

.

Threats to Person

$

2,250,000

 

$

25,000

 

8

.

Computer System

$

2,250,000

 

$

25,000

 

9

.

Voice Initiated Funds

 

 

 

 

 

 

 

 

Transfer Instruction

$

Not Covered

 

$

None

 

10

.

Uncollectible Items of Deposit

$

Not Covered

 

$

None

 

11

.

Audit Expense

 

$

25,000

 

$

10,000

 

ITEM 3.

THE LIABILITY OF THE COMPANY IS ALSO SUBJECT TO THE TERMS OF THE FOLLOWING

 

ENDORSEMENTS EXECUTED SIMULTANEOUSLY HEREWITH:

 

 

 

 

1 - 5

 

 

 

 

 

 

 

 

 

 

IN WITNESS WHEREOF, THE COMPANY has caused this Bond to be signed by its authorized officers, but it shall not be

valid unless also signed by an authorized representative of the Company.

 

 

 

   

ICAP Bond (5-98) - Federal

 

Form 17-02-1421 (Ed. 5-98)

Page 1 of 1

 


 

 

             

 

The COMPANY, in consideration of payment of the required premium, and in reliance

 

on the APPLICATION and all other statements made and information furnished to the

 

COMPANY by the ASSURED, and subject to the DECLARATIONS made a part of this

 

Bond and to all other terms and conditions of this Bond, agrees to pay the ASSURED

 

for:

 

 

 

 

 

 

 

Insuring Clauses

 

 

 

 

 

 

 

 

Employee

1

.

Loss resulting directly from Larceny or Embezzlement committed by any

 

 

 

Employee, alone or in collusion with others.

 

 

 

 

On Premises

2

.

Loss of Property resulting directly from robbery, burglary, false pretenses,

 

 

 

common law or statutory larceny, misplacement, mysterious unexplainable

 

 

 

disappearance, damage, destruction or removal, from the possession, custody or

 

 

 

control of the ASSURED, while such Property is lodged or deposited at premises

 

 

 

located anywhere.

 

 

In Transit

3

.

Loss of Property resulting directly from common law or statutory larceny,

 

 

 

misplacement, mysterious unexplainable disappearance, damage or destruction,

 

 

 

while the Property is in transit anywhere:

 

 

 

 

a.

in an armored motor vehicle, including loading and unloading thereof,

 

 

 

 

b.

in the custody of a natural person acting as a messenger of the ASSURED,

 

 

 

 

or

 

 

 

 

 

 

c.

in the custody of a Transportation Company and being transported in a

 

 

 

 

conveyance other than an armored motor vehicle provided, however, that

 

 

 

 

covered Property transported in such manner is limited to the following:

 

 

 

 

 

(1

)

written records,

 

 

 

 

 

(2

)

securities issued in registered form, which are not endorsed or are

restrictively endorsed, or

 

 

 

 

 

(3

)

negotiable instruments not payable to bearer, which are not endorsed

 

 

 

 

 

 

or are restrictively endorsed.

 

 

 

 

Coverage under this INSURING CLAUSE begins immediately on the receipt of

 

 

 

such Property by the natural person or Transportation Company and ends

 

 

 

immediately on delivery to the premises of the addressee or to any representative

 

 

 

of the addressee located anywhere.

 

   

ICAP Bond (5-98)

 

Form 17-02-1421 (Ed. 5-98)

Page 1 of 19

 


 

 

           

Insuring Clauses

 

 

 

 

 

(continued)

 

 

 

 

 

 

 

Forgery Or Alteration

4

.

Loss resulting directly from:

 

 

 

a.

Forgery on, or fraudulent material alteration of, any bills of exchange,

 

 

 

 

checks, drafts, acceptances, certificates of deposits, promissory notes, due

 

 

 

 

bills, money orders, orders upon public treasuries, letters of credit, other

 

 

 

 

written promises, orders or directions to pay sums certain in money, or

 

 

 

 

receipts for the withdrawal of Property, or

 

 

 

 

b.

transferring, paying or delivering any funds or other Property, or establishing

 

 

 

 

any credit or giving any value in reliance on any written instructions, advices

 

 

 

 

or applications directed to the ASSURED authorizing or acknowledging the

 

 

 

 

transfer, payment, delivery or receipt of funds or other Property, which

 

 

 

 

instructions, advices or applications fraudulently purport to bear the

 

 

 

 

handwritten signature of any customer of the ASSURED, or shareholder or

 

 

 

 

subscriber to shares of an Investment Company, or of any financial

 

 

 

 

institution or Employee but which instructions, advices or applications either

 

 

 

 

bear a Forgery or have been fraudulently materially altered without the

 

 

 

 

knowledge and consent of such customer, shareholder, subscriber, financial

 

 

 

 

institution or Employee;

 

 

 

 

excluding, however, under this INSURING CLAUSE any loss covered under

 

 

 

INSURING CLAUSE 5. of this Bond, whether or not coverage for INSURING

 

 

 

CLAUSE 5. is provided for in the DECLARATIONS of this Bond.

 

 

 

 

For the purpose of this INSURING CLAUSE, a mechanically reproduced facsimile

 

 

 

signature is treated the same as a handwritten signature.

 

 

Extended Forgery

5

.

Loss resulting directly from the ASSURED having, in good faith, and in the

 

 

 

ordinary course of business, for its own account or the account of others in any

 

 

 

capacity:

 

 

 

 

 

a.

acquired, accepted or received, sold or delivered, or given value, extended

 

 

 

 

credit or assumed liability, in reliance on any original Securities,

 

 

 

 

documents or other written instruments which prove to:

 

 

 

 

 

(1)

bear a Forgery or a fraudulently material alteration,

 

 

 

 

 

(2)

have been lost or stolen, or

 

 

 

 

 

(3)

be Counterfeit, or

 

 

 

 

b.

guaranteed in writing or witnessed any signatures on any transfer,

 

 

 

 

assignment, bill of sale, power of attorney, guarantee, endorsement or other

 

 

 

 

obligation upon or in connection with any Securities, documents or other

 

 

 

 

written instruments.

 

 

 

 

Actual physical possession, and continued actual physical possession if taken as

 

 

 

collateral, of such Securities, documents or other written instruments by an

 

 

 

Employee, Custodian, or a Federal or State chartered deposit institution of the

 

 

 

ASSURED is a condition precedent to the ASSURED having relied on such items.

 

 

 

Release or return of such collateral is an acknowledgment by the ASSURED that it

 

 

 

no longer relies on such collateral.

 

   

ICAP Bond (5-98)

 

Form 17-02-1421 (Ed. 5-98)

Page 2 of 19

 


 

 

             

Insuring Clauses

 

 

 

 

 

 

 

 

Extended Forgery

 

 

For the purpose of this INSURING CLAUSE, a mechanically reproduced facsimile

(continued)

 

 

signature is treated the same as a handwritten signature.

 

 

Counterfeit Money

6

.

Loss resulting directly from the receipt by the ASSURED in good faith of any

 

 

 

Counterfeit money.

 

 

Threats To Person

7

.

Loss resulting directly from surrender of Property away from an office of the

 

 

 

ASSURED as a result of a threat communicated to the ASSURED to do bodily

 

 

 

harm to an Employee as defined in SECTION 1.e. (1), (2) and (5), a Relative or

 

 

 

invitee of such Employee, or a resident of the household of such Employee, who

 

 

 

is, or allegedly is, being held captive provided, however, that prior to the surrender

 

 

 

of such Property:

 

 

 

 

a.

the Employee who receives the threat has made a reasonable effort to

 

 

 

 

notify an officer of the ASSURED who is not involved in such threat, and

 

 

 

 

b.

the ASSURED has made a reasonable effort to notify the Federal Bureau of

 

 

 

 

Investigation and local law enforcement authorities concerning such threat.

 

 

 

 

It is agreed that for purposes of this INSURING CLAUSE, any Employee of the

 

 

 

ASSURED, as set forth in the preceding paragraph, shall be deemed to be an

 

 

 

ASSURED hereunder, but only with respect to the surrender of money, securities

 

 

 

and other tangible personal property in which such Employee has a legal or

 

 

 

equitable interest.

 

 

Computer System

8

.

Loss resulting directly from fraudulent:

 

 

 

a.

entries of data into, or

 

 

 

 

b.

changes of data elements or programs within,

 

 

 

 

a Computer System, provided the fraudulent entry or change causes:

 

 

 

 

 

(1

)

funds or other property to be transferred, paid or delivered,

 

 

 

 

 

(2

)

an account of the ASSURED or of its customer to be added, deleted,

 

 

 

 

 

 

debited or credited, or

 

 

 

 

 

 

(3

)

an unauthorized account or a fictitious account to be debited or

 

 

 

 

 

 

credited.

 

   

ICAP Bond (5-98)

 

Form 17-02-1421 (Ed. 5-98)

Page 3 of 19

 


 

 

         

Insuring Clauses

 

 

 

 

(continued)

 

 

 

 

 

 

Voice Initiated Funds

9

.

Loss resulting directly from Voice Initiated Funds Transfer Instruction directed

Transfer Instruction

 

 

to the ASSURED authorizing the transfer of dividends or redemption proceeds of

 

 

 

Investment Company shares from a Customer's account, provided such Voice

 

 

 

Initiated Funds Transfer Instruction was:

 

 

 

 

a.

received at the ASSURED'S offices by those Employees of the ASSURED

 

 

 

 

specifically authorized to receive the Voice Initiated Funds Transfer

 

 

 

 

Instruction,

 

 

 

 

b.

made by a person purporting to be a Customer, and

 

 

 

 

c.

made by said person for the purpose of causing the ASSURED or Customer

 

 

 

 

to sustain a loss or making an improper personal financial gain for such

 

 

 

 

person or any other person.

 

 

 

 

In order for coverage to apply under this INSURING CLAUSE, all Voice Initiated

 

 

 

Funds Transfer Instructions must be received and processed in accordance with

 

 

 

the Designated Procedures outlined in the APPLICATION furnished to the

 

 

 

COMPANY.

 

 

Uncollectible Items of

10

.

Loss resulting directly from the ASSURED having credited an account of a

Deposit

 

 

customer, shareholder or subscriber on the faith of any Items of Deposit which

 

 

 

prove to be uncollectible, provided that the crediting of such account causes:

 

 

 

 

a.

redemptions or withdrawals to be permitted,

 

 

 

 

b.

shares to be issued, or

 

 

 

 

c.

dividends to be paid,

 

from an account of an Investment Company.

 

 

 

 

In order for coverage to apply under this INSURING CLAUSE, the ASSURED

 

 

 

must hold Items of Deposit for the minimum number of days stated in the

 

 

 

APPLICATION before permitting any redemptions or withdrawals, issuing any

 

 

 

shares or paying any dividends with respect to such Items of Deposit.

 

 

 

 

Items of Deposit shall not be deemed uncollectible until the ASSURED'S

 

 

 

standard collection procedures have failed.

 

 

Audit Expense

11

.

Expense incurred by the ASSURED for that part of the cost of audits or

 

 

 

examinations required by any governmental regulatory authority or self-regulatory

 

 

 

organization to be conducted by such authority, organization or their appointee by

 

 

 

reason of the discovery of loss sustained by the ASSURED and covered by this

 

 

 

Bond.

 

   

ICAP Bond (5-98)

 

Form 17-02-1421 (Ed. 5-98)

Page 4 of 19

 


 

 

         

General Agreements

 

 

 

 

 

 

Additional Companies

A.

If more than one corporation, or Investment Company, or any combination of

Included As Assured

 

them is included as the ASSURED herein:

 

 

(1

)

The total liability of the COMPANY under this Bond for loss or losses

 

 

 

 

sustained by any one or more or all of them shall not exceed the limit for

 

 

 

 

which the COMPANY would be liable under this Bond if all such loss were

 

 

 

 

sustained by any one of them.

 

 

 

(2

)

Only the first named ASSURED shall be deemed to be the sole agent of the

 

 

 

 

others for all purposes under this Bond, including but not limited to the giving

 

 

 

 

or receiving of any notice or proof required to be given and for the purpose of

 

 

 

 

effecting or accepting any amendments to or termination of this Bond. The

 

 

 

 

COMPANY shall furnish each Investment Company with a copy of the

 

 

 

 

Bond and with any amendment thereto, together with a copy of each formal

 

 

 

 

filing of claim by any other named ASSURED and notification of the terms of

 

 

 

 

the settlement of each such claim prior to the execution of such settlement.

 

 

 

(3

)

The COMPANY shall not be responsible for the proper application of any

 

 

 

 

payment made hereunder to the first named ASSURED.

 

 

 

(4

)

Knowledge possessed or discovery made by any partner, director, trustee,

 

 

 

 

officer or supervisory employee of any ASSURED shall constitute knowledge

 

 

 

 

or discovery by all the ASSUREDS for the purposes of this Bond.

 

 

 

(5

)

If the first named ASSURED ceases for any reason to be covered under this

 

 

 

 

Bond, then the ASSURED next named on the APPLICATION shall thereafter

 

 

 

 

be considered as the first named ASSURED for the purposes of this Bond.

 

 

Representation Made By

B.

The ASSURED represents that all information it has furnished in the

Assured

 

APPLICATION for this Bond or otherwise is complete, true and correct. Such

 

 

APPLICATION and other information constitute part of this Bond.

 

 

 

The ASSURED must promptly notify the COMPANY of any change in any fact or

 

 

circumstance which materially affects the risk assumed by the COMPANY under

 

 

this Bond.

 

 

 

Any intentional misrepresentation, omission, concealment or incorrect statement of

 

 

a material fact, in the APPLICATION or otherwise, shall be grounds for recision of

 

 

this Bond.

 

   

ICAP Bond (5-98)

 

Form 17-02-1421 (Ed. 5-98)

Page 5 of 19

 


 

 

         

General Agreements

 

 

 

 

(continued)

 

 

 

 

 

 

Additional Offices Or

C.

If the ASSURED, other than an Investment Company, while this Bond is in force,

Employees - Consolidation,

 

merges or consolidates with, or purchases or acquires assets or liabilities of

Merger Or Purchase Or

 

another institution, the ASSURED shall not have the coverage afforded under this

Acquisition Of Assets Or

 

Bond for loss which has:

Liabilities - Notice To

 

(1

)

occurred or will occur on premises, or

Company

 

 

 

 

 

 

(2

)

been caused or will be caused by an employee, or

 

 

(3

)

arisen or will arise out of the assets or liabilities,

 

 

 

 

of such institution, unless the ASSURED:

 

 

 

 

 

a.

 

gives the COMPANY written notice of the proposed consolidation, merger or

 

 

 

 

purchase or acquisition of assets or liabilities prior to the proposed effective

 

 

 

 

date of such action, and

 

 

b.

 

obtains the written consent of the COMPANY to extend some or all of the

 

 

 

 

coverage provided by this Bond to such additional exposure, and

 

 

c.

 

on obtaining such consent, pays to the COMPANY an additional premium.

 

 

Change Of Control -

D.

When the ASSURED learns of a change in control (other than in an Investment

Notice To Company

 

Company), as set forth in Section 2(a) (9) of the Investment Company Act of

 

 

1940,

 

the ASSURED shall within sixty (60) days give written notice to the

 

 

 

 

COMPANY setting forth:

 

 

 

 

 

(1

)

the names of the transferors and transferees (or the names of the beneficial

 

 

 

 

owners if the voting securities are registered in another name),

 

 

(2

)

the total number of voting securities owned by the transferors and the

 

 

 

 

transferees (or the beneficial owners), both immediately before and after the

 

 

 

 

transfer, and

 

 

(3

)

the total number of outstanding voting securities.

 

 

 

 

 

 

 

 

 

 

 

 

 

Failure to give the required notice shall result in termination of coverage for any

loss involving a transferee, to be effective on the date of such change in control.

 

 

 

 

 

 

Court Costs And

E.

The COMPANY will indemnify the ASSURED for court costs and reasonable

Attorneys’ Fees

 

attorneys' fees incurred and paid by the ASSURED in defense, whether or not

 

 

successful, whether or not fully litigated on the merits and whether or not settled,

 

 

of any claim, suit or legal proceeding with respect to which the ASSURED would

 

 

be entitled to recovery under this Bond. However, with respect to INSURING

 

 

CLAUSE 1., this Section shall only apply in the event that:

 

 

(1

)

an Employee admits to being guilty of Larceny or Embezzlement,

 

 

(2

)

an Employee is adjudicated to be guilty of Larceny or Embezzlement, or

 

   

ICAP Bond (5-98)

 

Form 17-02-1421 (Ed. 5-98)

Page 6 of 19

 


 

 

     

General Agreements

 

 

 

 

Court Costs And

(3)

in the absence of 1 or 2 above, an arbitration panel agrees, after a review of

Attorneys’ Fees

 

an agreed statement of facts between the COMPANY and the ASSURED,

(continued)

 

that an Employee would be found guilty of Larceny or Embezzlement if

 

 

such Employee were prosecuted.

 

 

 

The ASSURED shall promptly give notice to the COMPANY of any such suit or

 

legal proceeding and at the request of the COMPANY shall furnish copies of all

 

pleadings and pertinent papers to the COMPANY. The COMPANY may, at its

 

sole option, elect to conduct the defense of all or part of such legal proceeding.

 

The defense by the COMPANY shall be in the name of the ASSURED through

 

attorneys selected by the COMPANY. The ASSURED shall provide all reasonable

 

information and assistance as required by the COMPANY for such defense.

 

 

If the COMPANY declines to defend the ASSURED, no settlement without the

 

prior written consent of the COMPANY nor judgment against the ASSURED shall

 

determine the existence, extent or amount of coverage under this Bond.

 

 

If the amount demanded in any such suit or legal proceeding is within the

 

DEDUCTIBLE AMOUNT, if any, the COMPANY shall have no liability for court

 

costs and attorney's fees incurred in defending all or part of such suit or legal

 

proceeding.

 

 

If the amount demanded in any such suit or legal proceeding is in excess of the

 

LIMIT OF LIABILITY stated in ITEM 2. of the DECLARATIONS for the applicable

 

INSURING CLAUSE, the COMPANY'S liability for court costs and attorney's fees

 

incurred in defending all or part of such suit or legal proceedings is limited to the

 

proportion of such court costs and attorney's fees incurred that the LIMIT OF

 

LIABILITY stated in ITEM 2. of the DECLARATIONS for the applicable INSURING

 

CLAUSE bears to the total of the amount demanded in such suit or legal

 

proceeding.

 

 

If the amount demanded is any such suit or legal proceeding is in excess of the

 

DEDUCTIBLE AMOUNT, if any, but within the LIMIT OF LIABILITY stated in ITEM

 

2.

of the DECLARATIONS for the applicable INSURING CLAUSE, the

 

COMPANY'S liability for court costs and attorney's fees incurred in defending all or

 

part of such suit or legal proceedings shall be limited to the proportion of such

 

court costs or attorney's fees that the amount demanded that would be payable

 

under this Bond after application of the DEDUCTIBLE AMOUNT, bears to the total

 

amount demanded.

 

 

Amounts paid by the COMPANY for court costs and attorneys' fees shall be in

 

addition to the LIMIT OF LIABILITY stated in ITEM 2. of the DECLARATIONS.

 

   

ICAP Bond (5-98)

 

Form 17-02-1421 (Ed. 5-98)

Page 7 of 19

 


 

 

             

Conditions and

 

 

 

 

 

 

Limitations

 

 

 

 

 

 

 

 

Definitions

1

.

As used in this Bond:

 

 

 

a.

Computer System means a computer and all input, output, processing,

 

 

 

 

storage, off-line media libraries, and communication facilities which are

 

 

 

 

connected to the computer and which are under the control and supervision

 

 

 

 

of the operating system(s) or application(s) software used by the ASSURED.

 

 

 

 

b.

Counterfeit means an imitation of an actual valid original which is intended

 

 

 

 

to deceive and be taken as the original.

 

 

 

 

c.

Custodian means the institution designated by an Investment Company to

 

 

 

 

maintain possession and control of its assets.

 

 

 

 

d.

Customer means an individual, corporate, partnership, trust customer,

 

 

 

 

shareholder or subscriber of an Investment Company which has a written

 

 

 

 

agreement with the ASSURED for Voice Initiated Funds Transfer

 

 

 

 

Instruction.

 

 

 

 

e.

Employee means:

 

 

 

 

 

(1

)

an officer of the ASSURED,

 

 

 

 

 

(2

)

a natural person while in the regular service of the ASSURED at any of

 

 

 

 

 

 

the ASSURED'S premises and compensated directly by the ASSURED

 

 

 

 

 

 

through its payroll system and subject to the United States Internal

 

 

 

 

 

 

Revenue Service Form W-2 or equivalent income reporting plans of

 

 

 

 

 

 

other countries, and whom the ASSURED has the right to control and

 

 

 

 

 

 

direct both as to the result to be accomplished and details and means

 

 

 

 

 

 

by which such result is accomplished in the performance of such

 

 

 

 

 

 

service,

 

 

 

 

 

(3

)

a guest student pursuing studies or performing duties in any of the

 

 

 

 

 

 

ASSURED'S premises,

 

 

 

 

 

 

(4

)

an attorney retained by the ASSURED and an employee of such

 

 

 

 

 

 

attorney while either is performing legal services for the ASSURED,

 

 

 

 

 

(5

)

a natural person provided by an employment contractor to perform

 

 

 

 

 

 

employee duties for the ASSURED under the ASSURED'S supervision

 

 

 

 

 

 

at any of the ASSURED'S premises,

 

 

 

 

 

(6

)

an employee of an institution merged or consolidated with the

 

 

 

 

 

 

ASSURED prior to the effective date of this Bond,

 

 

 

 

 

(7

)

a director or trustee of the ASSURED, but only while performing acts

 

 

 

 

 

 

within the scope of the customary and usual duties of any officer or

 

 

 

 

 

 

other employee of the ASSURED or while acting as a member of any

 

 

 

 

 

 

committee duly elected or appointed to examine or audit or have

 

 

 

 

 

 

custody of or access to Property of the ASSURED, or

 

   

ICAP Bond (5-98)

 

Form 17-02-1421 (Ed. 5-98)

Page 8 of 19

 


 

 

         

Conditions and

 

 

 

 

Limitations

 

 

 

 

 

 

Definitions

(8

)

each natural person, partnership or corporation authorized by written

(continued)

 

 

agreement with the ASSURED to perform services as electronic data

 

 

 

processor of checks or other accounting records related to such checks but

 

 

 

only while such person, partnership or corporation is actually performing

 

 

 

such services and not:

 

 

 

 

a.

creating, preparing, modifying or maintaining the ASSURED'S

 

 

 

 

computer software or programs, or

 

 

 

 

b.

acting as transfer agent or in any other agency capacity in issuing

 

 

 

 

checks, drafts or securities for the ASSURED,

 

 

(9

)

any partner, officer or employee of an investment advisor, an underwriter

 

 

 

(distributor), a transfer agent or shareholder accounting recordkeeper, or an

 

 

 

administrator, for an Investment Company while performing acts coming

 

 

 

within the scope of the customary and usual duties of an officer or employee

 

 

 

of an Investment Company or acting as a member of any committee duly

 

 

 

elected or appointed to examine, audit or have custody of or access to

 

 

 

Property of an Investment Company.

 

 

 

 

The term Employee shall not include any partner, officer or employee of a

 

 

 

transfer agent, shareholder accounting recordkeeper or administrator:

 

 

 

 

a.

which is not an "affiliated person" (as defined in Section 2(a) of the

 

 

 

 

Investment Company Act of 1940) of an Investment Company or of

 

 

 

 

the investment advisor or underwriter (distributor) of such Investment

 

 

 

 

Company, or

 

 

 

 

b.

which is a "bank" (as defined in Section 2(a) of the Investment

 

 

 

 

Company Act of 1940).

 

 

 

 

 

 

This Bond does not afford coverage in favor of the employers of

 

 

 

 

persons as set forth in e. (4), (5) and (8) above, and upon payment to

 

 

 

 

the ASSURED by the COMPANY resulting directly from Larceny or

 

 

 

 

Embezzlement committed by any of the partners, officers or

 

 

 

 

employees of such employers, whether acting alone or in collusion with

 

 

 

 

others, an assignment of such of the ASSURED'S rights and causes of

 

 

 

 

action as it may have against such employers by reason of such acts

 

 

 

 

so committed shall, to the extent of such payment, be given by the

 

 

 

 

ASSURED to the COMPANY, and the ASSURED shall execute all

 

 

 

 

papers necessary to secure to the COMPANY the rights provided for

 

 

 

 

herein.

 

 

 

 

Each employer of persons as set forth in e.(4), (5) and (8) above and the

 

 

 

partners, officers and other employees of such employers shall collectively

 

 

 

be deemed to be one person for all the purposes of this Bond; excepting,

 

 

 

however, the fifth paragraph of Section 13.

 

 

 

 

Independent contractors not specified in e.(4), (5) or (8) above,

 

 

 

intermediaries, agents, brokers or other representatives of the same general

 

 

 

character shall not be considered Employees.

 

   

ICAP Bond (5-98)

 

Form 17-02-1421 (Ed. 5-98)

Page 9 of 19

 


 

 

     

Conditions and

 

 

Limitations

 

 

 

 

Definitions

f.

Forgery means the signing of the name of another natural person with the

(continued)

 

intent to deceive but does not mean a signature which consists in whole or in

 

 

part of one's own name, with or without authority, in any capacity for any

 

 

purpose.

 

 

g.

Investment Company means any investment company registered under the

 

 

Investment Company Act of 1940 and listed under the NAME OF ASSURED

 

 

on the DECLARATIONS.

 

 

h.

Items of Deposit means one or more checks or drafts drawn upon a

 

 

financial institution in the United States of America.

 

 

i.

Larceny or Embezzlement means larceny or embezzlement as defined in

 

 

Section 37 of the Investment Company Act of 1940.

 

 

j.

Property means money, revenue and other stamps; securities; including any

 

 

note, stock, treasury stock, bond, debenture, evidence of indebtedness,

 

 

certificate of deposit, certificate of interest or participation in any profit-

 

 

sharing agreement, collateral trust certificate, preorganization certificate or

 

 

subscription, transferable share, investment contract, voting trust certificate,

 

 

certificate of deposit for a security, fractional undivided interest in oil, gas, or

 

 

other mineral rights, any interest or instruments commonly known as a

 

 

security under the Investment Company Act of 1940, any other certificate of

 

 

interest or participation in, temporary or interim certificate for, receipt for,

 

 

guarantee of, or warrant or right to subscribe to or purchase any of the

 

 

foregoing; bills of exchange; acceptances; checks; withdrawal orders; money

 

 

orders; travelers' letters of credit; bills of lading; abstracts of title; insurance

 

 

policies, deeds, mortgages on real estate and/or upon chattels and interests

 

 

therein; assignments of such policies, deeds or mortgages; other valuable

 

 

papers, including books of accounts and other records used by the

 

 

ASSURED in the conduct of its business (but excluding all electronic data

 

 

processing records); and, all other instruments similar to or in the nature of

 

 

the foregoing in which the ASSURED acquired an interest at the time of the

 

 

ASSURED'S consolidation or merger with, or purchase of the principal

 

 

assets of, a predecessor or which are held by the ASSURED for any

 

 

purpose or in any capacity and whether so held gratuitously or not and

 

 

whether or not the ASSURED is liable therefor.

 

 

k.

Relative means the spouse of an Employee or partner of the ASSURED

 

 

and any unmarried child supported wholly by, or living in the home of, such

 

 

Employee or partner and being related to them by blood, marriage or legal

 

 

guardianship.

 

 

l.

Securities, documents or other written instruments means original

 

 

(including original counterparts) negotiable or non-negotiable instruments, or

 

 

assignments thereof, which in and of themselves represent an equitable

 

 

interest, ownership, or debt and which are in the ordinary course of business

 

 

transferable by delivery of such instruments with any necessary

 

 

endorsements or assignments.

 

   

ICAP Bond (5-98)

 

Form 17-02-1421 (Ed. 5-98)

Page 10 of 19

 


 

 

         

Conditions and

 

 

 

 

Limitations

 

 

 

 

 

 

Definitions

m.

Subsidiary means any organization that, at the inception date of this Bond,

(continued)

 

 

 

is named in the APPLICATION or is created during the BOND PERIOD and

 

 

 

 

of which more than fifty percent (50%) of the outstanding securities or voting

 

 

 

 

rights representing the present right to vote for election of directors is owned

 

 

 

 

or controlled by the ASSURED either directly or through one or more of its

 

 

 

 

subsidiaries.

 

 

 

 

n.

Transportation Company means any organization which provides its own

 

 

 

 

or its leased vehicles for transportation or which provides freight forwarding

 

 

 

 

or air express services.

 

 

o.

Voice Initiated Election means any election concerning dividend options

 

 

 

 

available to Investment Company shareholders or subscribers which is

 

 

 

 

requested by voice over the telephone.

 

 

p.

Voice Initiated Redemption means any redemption of shares issued by an

 

 

 

 

Investment Company which is requested by voice over the telephone.

 

 

q.

Voice Initiated Funds Transfer Instruction means any Voice Initiated

 

 

 

 

Redemption or Voice Initiated Election.

 

 

 

 

For the purposes of these definitions, the singular includes the plural and the

 

 

 

plural includes the singular, unless otherwise indicated.

 

 

General Exclusions -

2

.

This bond does not directly or indirectly cover:

Applicable to All Insuring

 

 

a.

loss not reported to the COMPANY in writing within sixty (60) days after

Clauses

 

 

 

termination of this Bond as an entirety;

 

 

 

 

b.

loss due to riot or civil commotion outside the United States of America and

 

 

 

 

Canada, or any loss due to military, naval or usurped power, war or

 

 

 

 

insurrection. This Section 2.b., however, shall not apply to loss which occurs

 

 

 

 

in transit in the circumstances recited in INSURING CLAUSE 3., provided

 

 

 

 

that when such transit was initiated there was no knowledge on the part of

 

 

 

 

any person acting for the ASSURED of such riot, civil commotion, military,

 

 

 

 

naval or usurped power, war or insurrection;

 

 

 

 

c.

loss resulting from the effects of nuclear fission or fusion or radioactivity;

 

 

 

 

d.

loss of potential income including, but not limited to, interest and dividends

 

 

 

 

not realized by the ASSURED or by any customer of the ASSURED;

 

 

 

 

e.

damages of any type for which the ASSURED is legally liable, except

 

 

 

 

compensatory damages, but not multiples thereof, arising from a loss

 

 

 

 

covered under this Bond;

 

 

 

 

f.

costs, fees and expenses incurred by the ASSURED in establishing the

 

 

 

 

existence of or amount of loss under this Bond, except to the extent covered

 

 

 

 

under INSURING CLAUSE 11.;

 

 

 

 

g.

loss resulting from indirect or consequential loss of any nature;

 

   

ICAP Bond (5-98)

 

Form 17-02-1421 (Ed. 5-98)

Page 11 of 19

 


 

 

               

Conditions and

 

 

 

 

 

 

 

Limitations

 

 

 

 

 

 

 

 

 

General Exclusions -

 

 

h.

loss resulting from dishonest acts by any member of the Board of Directors

Applicable to All Insuring

 

 

 

or Board of Trustees of the ASSURED who is not an Employee, acting

Clauses

 

 

 

alone or in collusion with others;

(continued)

 

 

i.

loss, or that part of any loss, resulting solely from any violation by the

 

 

 

 

ASSURED or by any Employee:

 

 

 

 

 

(1

)

of any law regulating:

 

 

 

 

 

 

a.

the issuance, purchase or sale of securities,

 

 

 

 

 

 

b.

securities transactions on security or commodity exchanges or

 

 

 

 

 

 

 

the over the counter market,

 

 

 

 

 

 

c.

investment companies,

 

 

 

 

 

 

d.

investment advisors, or

 

 

 

 

(2

)

of any rule or regulation made pursuant to any such law; or

 

 

 

j.

loss of confidential information, material or data;

 

 

 

k.

loss resulting from voice requests or instructions received over the

 

 

 

 

telephone, provided however, this Section 2.k. shall not apply to INSURING

 

 

 

 

CLAUSE 7. or 9.

 

 

Specific Exclusions -

3

.

This Bond does not directly or indirectly cover:

Applicable To All Insuring

 

 

a.

loss caused by an Employee, provided, however, this Section 3.a. shall not

Clauses Except Insuring

 

 

 

apply to loss covered under INSURING CLAUSE 2. or 3. which results

Clause 1.

 

 

 

directly from misplacement, mysterious unexplainable disappearance, or

 

 

 

 

damage or destruction of Property;

 

 

 

 

b.

loss through the surrender of property away from premises of the ASSURED

 

 

 

 

as a result of a threat:

 

 

 

 

(1

)

to do bodily harm to any natural person, except loss of Property in

 

 

 

 

 

 

transit in the custody of any person acting as messenger of the

 

 

 

 

 

 

ASSURED, provided that when such transit was initiated there was no

 

 

 

 

 

 

knowledge by the ASSURED of any such threat, and provided further

 

 

 

 

 

 

that this Section 3.b. shall not apply to INSURING CLAUSE 7., or

 

 

 

 

(2

)

to do damage to the premises or Property of the ASSURED;

 

 

 

c.

loss resulting from payments made or withdrawals from any account

 

 

 

 

involving erroneous credits to such account;

 

 

 

d.

loss involving Items of Deposit which are not finally paid for any reason

 

 

 

 

provided however, that this Section 3.d. shall not apply to INSURING

 

 

 

 

CLAUSE 10.;

 

 

 

e.

loss of property while in the mail;

 

   

ICAP Bond (5-98)

 

Form 17-02-1421 (Ed. 5-98)

Page 12 of 19

 


 

 

                 

Conditions and

 

 

 

 

 

 

 

 

Limitations

 

 

 

 

 

 

 

 

 

 

Specific Exclusions -

 

 

f.

loss resulting from the failure for any reason of a financial or depository

Applicable To All Insuring

 

 

 

institution, its receiver or other liquidator to pay or deliver funds or other

Clauses Except Insuring

 

 

 

Property to the ASSURED provided further that this Section 3.f. shall not

Clause 1.

 

 

 

apply to loss of Property resulting directly from robbery, burglary,

(continued)

 

 

 

misplacement, mysterious unexplainable disappearance, damage,

 

 

 

 

destruction or removal from the possession, custody or control of the

 

 

 

 

ASSURED.

 

 

 

 

 

 

 

 

g.

loss of Property while in the custody of a Transportation Company,

 

 

 

 

provided however, that this Section 3.g. shall not apply to INSURING

 

 

 

 

CLAUSE 3.;

 

 

 

 

 

 

 

 

h.

loss resulting from entries or changes made by a natural person with

 

 

 

 

authorized access to a Computer System who acts in good faith on

 

 

 

 

instructions, unless such instructions are given to that person by a software

 

 

 

 

contractor or its partner, officer, or employee authorized by the ASSURED to

 

 

 

 

design, develop, prepare, supply, service, write or implement programs for

 

 

 

 

the ASSURED's Computer System; or

 

 

 

 

 

 

i.

loss resulting directly or indirectly from the input of data into a Computer

 

 

 

 

System terminal, either on the premises of the customer of the ASSURED

 

 

 

 

or under the control of such a customer, by a customer or other person who

 

 

 

 

had authorized access to the customer's authentication mechanism.

 

 

Specific Exclusions -

4

.

This bond does not directly or indirectly cover:

 

 

Applicable To All Insuring

 

 

a.

loss resulting from the complete or partial non-payment of or default on any

Clauses Except Insuring

 

 

 

loan whether such loan was procured in good faith or through trick, artifice,

Clauses 1., 4., And 5.

 

 

 

fraud or false pretenses; provided, however, this Section 4.a. shall not apply

 

 

 

 

to INSURING CLAUSE 8.;

 

 

 

 

 

 

 

b.

loss resulting from forgery or any alteration;

 

 

 

 

 

 

c.

loss involving a counterfeit provided, however, this Section 4.c. shall not

 

 

 

 

apply to INSURING CLAUSE 5. or 6.

 

 

 

 

Limit Of Liability/Non-

5

.

At all times prior to termination of this Bond, this Bond shall continue in force for

Reduction And Non-

 

 

the limit stated in the applicable sections of ITEM 2. of the DECLARATIONS,

Accumulation Of Liability

 

 

notwithstanding any previous loss for which the COMPANY may have paid or be

 

 

 

liable to pay under this Bond provided, however, that the liability of the COMPANY

 

 

 

under this Bond with respect to all loss resulting from:

 

 

 

 

 

a.

any one act of burglary, robbery or hold-up, or attempt thereat, in which no

 

 

 

 

Employee is concerned or implicated, or

 

 

 

 

 

 

b.

any one unintentional or negligent act on the part of any one person

 

 

 

 

resulting in damage to or destruction or misplacement of Property, or

 

 

 

 

c.

all acts, other than those specified in a. above, of any one person, or

 

   

ICAP Bond (5-98)

 

Form 17-02-1421 (Ed. 5-98)

Page 13 of 19

 


 

 

         

Conditions and

 

 

 

 

Limitations

 

 

 

 

 

 

Limit Of Liability/Non-

 

 

d.

any one casualty or event other than those specified in a., b., or c. above,

Reduction And Non-

 

 

shall be deemed to be one loss and shall be limited to the applicable LIMIT OF

Accumulation Of Liability

 

 

LIABILITY stated in ITEM 2. of the DECLARATIONS of this Bond irrespective of

(continued)

 

 

the total amount of such loss or losses and shall not be cumulative in amounts

 

 

 

from year to year or from period to period.

 

 

 

 

All acts, as specified in c. above, of any one person which

 

 

 

 

i.

directly or indirectly aid in any way wrongful acts of any other person or

 

 

 

 

persons, or

 

 

 

 

ii.

permit the continuation of wrongful acts of any other person or persons

 

 

 

 

whether such acts are committed with or without the knowledge of the wrongful

 

 

 

acts of the person so aided, and whether such acts are committed with or without

 

 

 

the intent to aid such other person, shall be deemed to be one loss with the

 

 

 

wrongful acts of all persons so aided.

 

 

Discovery

6

.

This Bond applies only to loss first discovered by an officer of the ASSURED

 

 

 

during the BOND PERIOD. Discovery occurs at the earlier of an officer of the

 

 

 

ASSURED being aware of:

 

 

 

 

a.

facts which may subsequently result in a loss of a type covered by this Bond,

 

 

 

 

or

 

 

 

 

b.

an actual or potential claim in which it is alleged that the ASSURED is liable

 

 

 

 

to a third party,

 

 

 

 

regardless of when the act or acts causing or contributing to such loss occurred,

 

 

 

even though the amount of loss does not exceed the applicable DEDUCTIBLE

 

 

 

AMOUNT, or the exact amount or details of loss may not then be known.

 

 

Notice To Company -

7

.

a.

The ASSURED shall give the COMPANY notice thereof at the earliest

Proof - Legal Proceedings

 

 

 

practicable moment, not to exceed sixty (60) days after discovery of loss, in

Against Company

 

 

 

an amount that is in excess of 50% of the applicable DEDUCTIBLE

 

 

 

 

AMOUNT, as stated in ITEM 2. of the DECLARATIONS.

 

 

 

 

b.

The ASSURED shall furnish to the COMPANY proof of loss, duly sworn to,

 

 

 

 

with full particulars within six (6) months after such discovery.

 

 

 

 

c.

Securities listed in a proof of loss shall be identified by certificate or bond

 

 

 

 

numbers, if issued with them.

 

 

 

 

d.

Legal proceedings for the recovery of any loss under this Bond shall not be

 

 

 

 

brought prior to the expiration of sixty (60) days after the proof of loss is filed

 

 

 

 

with the COMPANY or after the expiration of twenty-four (24) months from

 

 

 

 

the discovery of such loss.

 

 

 

 

e.

This Bond affords coverage only in favor of the ASSURED. No claim, suit,

 

 

 

 

action or legal proceedings shall be brought under this Bond by anyone

 

 

 

 

other than the ASSURED.

 

   

ICAP Bond (5-98)

 

Form 17-02-1421 (Ed. 5-98)

Page 14 of 19

 


 

 

         

Conditions and

 

 

 

 

Limitations

 

 

 

 

 

 

Notice To Company -

 

 

f.

Proof of loss involving Voice Initiated Funds Transfer Instruction shall

Proof - Legal Proceedings

 

 

 

include electronic recordings of such instructions.

Against Company

 

 

 

 

(continued)

 

 

 

 

 

 

Deductible Amount

8

.

The COMPANY shall not be liable under any INSURING CLAUSES of this Bond

 

 

 

on account of loss unless the amount of such loss, after deducting the net amount

 

 

 

of all reimbursement and/or recovery obtained or made by the ASSURED, other

 

 

 

than from any Bond or policy of insurance issued by an insurance company and

 

 

 

covering such loss, or by the COMPANY on account thereof prior to payment by

 

 

 

the COMPANY of such loss, shall exceed the DEDUCTIBLE AMOUNT set forth in

 

 

 

ITEM 3. of the DECLARATIONS, and then for such excess only, but in no event

 

 

 

for more than the applicable LIMITS OF LIABILITY stated in ITEM 2. of the

 

 

 

DECLARATIONS.

 

 

 

 

There shall be no deductible applicable to any loss under INSURING CLAUSE 1.

 

 

 

sustained by any Investment Company.

 

 

Valuation

9

.

BOOKS OF ACCOUNT OR OTHER RECORDS

 

 

 

The value of any loss of Property consisting of books of account or other records

 

 

 

used by the ASSURED in the conduct of its business shall be the amount paid by

 

 

 

the ASSURED for blank books, blank pages, or other materials which replace the

 

 

 

lost books of account or other records, plus the cost of labor paid by the

 

 

 

ASSURED for the actual transcription or copying of data to reproduce such books

 

 

 

of account or other records.

 

 

 

 

The value of any loss of Property other than books of account or other records

 

 

 

used by the ASSURED in the conduct of its business, for which a claim is made

 

 

 

shall be determined by the average market value of such Property on the

 

 

 

business day immediately preceding discovery of such loss provided, however,

 

 

 

that the value of any Property replaced by the ASSURED with the consent of the

 

 

 

COMPANY and prior to the settlement of any claim for such Property shall be the

 

 

 

actual market value at the time of replacement.

 

 

 

 

 

In the case of a loss of interim certificates, warrants, rights or other securities, the

 

 

 

production of which is necessary to the exercise of subscription, conversion,

 

 

 

redemption or deposit privileges, the value of them shall be the market value of

 

 

 

such privileges immediately preceding their expiration if said loss is not discovered

 

 

 

until after their expiration. If no market price is quoted for such Property or for

 

 

 

such privileges, the value shall be fixed by agreement between the parties.

 

 

 

 

OTHER PROPERTY

 

 

 

 

The value of any loss of Property, other than as stated above, shall be the actual

 

 

 

cash value or the cost of repairing or replacing such Property with Property of

 

 

 

like quality and value, whichever is less.

 

   

ICAP Bond (5-98)

 

Form 17-02-1421 (Ed. 5-98)

Page 15 of 19

 


 

 

         

Conditions and

 

 

 

 

Limitations

 

 

 

 

(continued)

 

 

 

 

 

 

Securities Settlement

10

.

In the event of a loss of securities covered under this Bond, the COMPANY may,

 

 

 

at its sole discretion, purchase replacement securities, tender the value of the

 

 

 

securities in money, or issue its indemnity to effect replacement securities.

 

 

 

 

The indemnity required from the ASSURED under the terms of this Section

 

 

 

against all loss, cost or expense arising from the replacement of securities by the

 

 

 

COMPANY'S indemnity shall be:

 

 

 

 

a.

for securities having a value less than or equal to the applicable

 

 

 

 

DEDUCTIBLE AMOUNT - one hundred (100%) percent;

 

 

 

 

b.

for securities having a value in excess of the DEDUCTIBLE AMOUNT but

 

 

 

 

within the applicable LIMIT OF LIABILITY - the percentage that the

 

 

 

 

DEDUCTIBLE AMOUNT bears to the value of the securities;

 

 

 

 

c.

for securities having a value greater than the applicable LIMIT OF LIABILITY

 

 

 

 

- the percentage that the DEDUCTIBLE AMOUNT and portion in excess of

 

 

 

 

the applicable LIMIT OF LIABILITY bears to the value of the securities.

 

 

 

 

The value referred to in Section 10.a., b., and c. is the value in accordance with

 

 

 

Section 9, Valuation, regardless of the value of such securities at the time the loss

 

 

 

under the COMPANY'S indemnity is sustained.

 

 

 

 

 

The COMPANY is not required to issue its indemnity for any portion of a loss of

 

 

 

securities which is not covered by this Bond; however, the COMPANY may do so

 

 

 

as a courtesy to the ASSURED and at its sole discretion.

 

 

 

 

The ASSURED shall pay the proportion of the Company's premium charge for the

 

 

 

Company's indemnity as set forth in Section 10.a., b., and c. No portion of the

 

 

 

LIMIT OF LIABILITY shall be used as payment of premium for any indemnity

 

 

 

purchased by the ASSURED to obtain replacement securities.

 

 

Subrogation - Assignment – 11.

 

In the event of a payment under this Bond, the COMPANY shall be subrogated to

Recovery

 

 

all of the ASSURED'S rights of recovery against any person or entity to the extent

 

 

 

of such payment. On request, the ASSURED shall deliver to the COMPANY an

 

 

 

assignment of the ASSURED'S rights, title and interest and causes of action

 

 

 

against any person or entity to the extent of such payment.

 

 

 

 

Recoveries, whether effected by the COMPANY or by the ASSURED, shall be

 

 

 

applied net of the expense of such recovery in the following order:

 

 

 

 

a.

first, to the satisfaction of the ASSURED'S loss which would otherwise have

 

 

 

 

been paid but for the fact that it is in excess of the applicable LIMIT OF

 

 

 

 

LIABILITY,

 

 

 

 

b.

second, to the COMPANY in satisfaction of amounts paid in settlement of

 

 

 

 

the ASSURED'S claim,

 

 

 

 

c.

third, to the ASSURED in satisfaction of the applicable DEDUCTIBLE

 

 

 

 

AMOUNT, and

 

   

ICAP Bond (5-98)

 

Form 17-02-1421 (Ed. 5-98)

Page 16 of 19

 


 

 

         

Conditions and

 

 

 

 

Limitations

 

 

 

 

 

 

Subrogation - Assignment –

 

 

d.

fourth, to the ASSURED in satisfaction of any loss suffered by the

Recovery

 

 

 

ASSURED which was not covered under this Bond.

(continued)

 

 

Recovery from reinsurance or indemnity of the COMPANY shall not be deemed a

 

 

 

recovery under this section.

 

 

Cooperation Of Assured

12

.

At the COMPANY'S request and at reasonable times and places designated by

 

 

 

the COMPANY, the ASSURED shall:

 

 

 

 

a.

submit to examination by the COMPANY and subscribe to the same under

 

 

 

 

oath,

 

 

 

 

b.

produce for the COMPANY'S examination all pertinent records, and

 

 

 

 

c.

cooperate with the COMPANY in all matters pertaining to the loss.

 

 

 

 

The ASSURED shall execute all papers and render assistance to secure to the

 

 

 

COMPANY the rights and causes of action provided for under this Bond. The

 

 

 

ASSURED shall do nothing after loss to prejudice such rights or causes of action.

 

 

Termination

13

.

If the Bond is for a sole ASSURED, it shall not be terminated unless written notice

 

 

 

shall have been given by the acting party to the affected party and to the

 

 

 

Securities and Exchange Commission, Washington, D.C., not less than sixty (60)

 

 

 

days prior to the effective date of such termination.

 

 

 

 

If the Bond is for a joint ASSURED, it shall not be terminated unless written notice

 

 

 

shall have been given by the acting party to the affected party, and by the

 

 

 

COMPANY to all ASSURED Investment Companies and to the Securities and

 

 

 

Exchange Commission, Washington, D.C., not less than sixty (60) days prior to

 

 

 

the effective date of such termination.

 

 

 

 

This Bond will terminate as to any one ASSURED, other than an Investment

 

 

 

Company:

 

 

 

 

a.

immediately on the taking over of such ASSURED by a receiver or other

 

 

 

 

liquidator or by State or Federal officials, or

 

 

 

 

b.

immediately on the filing of a petition under any State or Federal statute

 

 

 

 

relative to bankruptcy or reorganization of the ASSURED, or assignment for

 

 

 

 

the benefit of creditors of the ASSURED, or

 

 

 

 

c.

immediately upon such ASSURED ceasing to exist, whether through merger

 

 

 

 

into another entity, disposition of all of its assets or otherwise.

 

 

 

 

The COMPANY shall refund the unearned premium computed at short rates in

 

 

 

accordance with the standard short rate cancellation tables if terminated by the

 

 

 

ASSURED or pro rata if terminated for any other reason.

 

   

ICAP Bond (5-98)

 

Form 17-02-1421 (Ed. 5-98)

Page 17 of 19

 


 

 

         

Conditions and

 

 

 

 

Limitations

 

 

 

 

 

 

Termination

 

 

If any partner, director, trustee, or officer or supervisory employee of an

(continued)

 

 

ASSURED not acting in collusion with an Employee learns of any dishonest act

 

 

 

committed by such Employee at any time, whether in the employment of the

 

 

 

ASSURED or otherwise, whether or not such act is of the type covered under this

 

 

 

Bond, and whether against the ASSURED or any other person or entity, the

 

 

 

ASSURED:

 

 

 

 

a.

shall immediately remove such Employee from a position that would enable

 

 

 

 

such Employee to cause the ASSURED to suffer a loss covered by this

 

 

 

 

Bond; and

 

 

 

 

b.

within forty-eight (48) hours of learning that an Employee has committed

 

 

 

 

any dishonest act, shall notify the COMPANY, of such action and provide full

 

 

 

 

particulars of such dishonest act.

 

 

 

 

 

The COMPANY may terminate coverage as respects any Employee sixty (60)

 

 

 

days after written notice is received by each ASSURED Investment Company

 

 

 

and the Securities and Exchange Commission, Washington, D.C. of its desire to

 

 

 

terminate this Bond as to such Employee.

 

 

Other Insurance

14

.

Coverage under this Bond shall apply only as excess over any valid and collectible

 

 

 

insurance, indemnity or suretyship obtained by or on behalf of:

 

 

 

 

a.

the ASSURED,

 

 

 

 

b.

a Transportation Company, or

 

 

 

 

c.

another entity on whose premises the loss occurred or which employed the

 

 

 

 

person causing the loss or engaged the messenger conveying the Property

 

 

 

 

involved.

 

 

Conformity

15

.

If any limitation within this Bond is prohibited by any law controlling this Bond's

 

 

 

construction, such limitation shall be deemed to be amended so as to equal the

 

 

 

minimum period of limitation provided by such law.

 

 

Change or Modification

16

.

This Bond or any instrument amending or affecting this Bond may not be changed

 

 

 

or modified orally. No change in or modification of this Bond shall be effective

 

 

 

except when made by written endorsement to this Bond signed by an authorized

 

 

 

representative of the COMPANY.

 

 

 

 

If this Bond is for a sole ASSURED, no change or modification which would

 

 

 

adversely affect the rights of the ASSURED shall be effective prior to sixty (60)

 

 

 

days after written notice has been furnished to the Securities and Exchange

 

 

 

Commission, Washington, D.C., by the acting party.

 

   

ICAP Bond (5-98)

 

Form 17-02-1421 (Ed. 5-98)

Page 18 of 19

 


 

 

   

Conditions And

 

Limitations

 

 

 

Change or Modification

If this Bond is for a joint ASSURED, no charge or modification which would

(continued)

adversely affect the rights of the ASSURED shall be effective prior to sixty (60)

 

days after written notice has been furnished to all insured Investment Companies

 

and to the Securities and Exchange Commission, Washington, D.C., by the

 

COMPANY.

 

   

ICAP Bond (5-98)

 

Form 17-02-1421 (Ed. 5-98)

Page 19 of 19

 


 

 

 

IMPORTANT NOTICE TO POLICYHOLDERS

 

 

 

All of the members of the Chubb Group of Insurance companies doing business in the United

States (hereinafter “Chubb”) distribute their products through licensed insurance brokers and agents

(“producers”). Detailed information regarding the types of compensation paid by Chubb to producers on

US insurance transactions is available under the Producer Compensation link located at the bottom of the

page at www.chubb.com, or by calling 1-866-588-9478. Additional information may be available from

your producer.

 

Thank you for choosing Chubb.

 

10-02-1295 (ed. 6/2007)


 

 

 

Important Notice:

 

 

 

The SEC Requires Proof of Your Fidelity Insurance Policy

 

Your company is now required to file an electronic copy of your fidelity insurance coverage

(Chubb’s ICAP Bond policy) to the Securities and Exchange Commission (SEC), according to

rules adopted by the SEC on June 12, 2006.

 

Chubb is in the process of providing your agent/broker with an electronic copy of your insurance

policy as well as instructions on how to submit this proof of fidelity insurance coverage to the

SEC. You can expect to receive this information from your agent/broker shortly.

 

The electronic copy of your policy is provided by Chubb solely as a convenience and does not

affect the terms and conditions of coverage as set forth in the paper policy you receive by mail.

The terms and conditions of the policy mailed to you, which are the same as those set forth in

the electronic copy, constitute the entire agreement between your company and Chubb.

 

If you have any questions, please contact your agent or broker.

 

Form 14-02-12160 (ed. 7/2006)


 

 

 

POLICYHOLDER

DISCLOSURE NOTICE OF

TERRORISM INSURANCE COVERAGE

(for policies with no terrorism exclusion or sublimit)

Insuring Company:

You are hereby notified that, under the Terrorism Risk Insurance Act (the “Act”), this

policy makes available to you insurance for losses arising out of certain acts of terrorism.

Terrorism is defined as any act certified by the Secretary of the Treasury of the United

States, to be an act of terrorism; to be a violent act or an act that is dangerous to human

life, property or infrastructure; to have resulted in damage within the United States,

or outside the United States in the case of an air carrier or vessel or the premises of a

United States Mission; and to have been committed by an individual or individuals as part

of an effort to coerce the civilian population of the United States or to influence the policy

or affect the conduct of the United States Government by coercion.

 

You should know that the insurance provided by your policy for losses caused by acts of

terrorism is partially reimbursed by the United States under the formula set forth in the

Act. Under this formula, the United States pays 85% of covered terrorism losses that

exceed the statutorily established deductible to be paid by the insurance company

providing the coverage. Beginning in 2016, the Federal share will be reduced by 1% per

year until it reaches 80%, where it will remain.

 

However, if aggregate insured losses attributable to terrorist acts certified under the Act

exceed $100 billion in a calendar year, the Treasury shall not make any payment for

any portion of the amount of such losses that exceeds $100 billion.

 

10-02-1281 (Ed. 03/2015)


 

 

 

If aggregate insured losses attributable to terrorist acts certified under the Act exceed

$100 billion in a calendar year and we have met our insurer deductible under the Act,

we shall not be liable for the payment of any portion of the amount of such losses that

exceeds $100 billion, and in such case insured losses up to that amount are subject to

pro rata allocation in accordance with procedures established by the Secretary of the

Treasury.

 

The portion of your policy’s annual premium that is attributable to insurance for such acts

of terrorism is: $ -0-.

 

If you have any questions about this notice, please contact your agent or broker.

 

10-02-1281 (Ed. 03/2015)


 

 

   

FEDERAL INSURANCE COMPANY

Endorsement No:

1

Bond Number:

80911610

NAME OF ASSURED: GENERAL AMERICAN INVESTORS COMPANY INC

 

 

NAME OF ASSURED ENDORSEMENT

 

It is agreed that the NAME OF ASSURED in the DECLARATIONS is amended to read as follows:

General American Investors Company, Inc.

 

General American Investors Company, Inc. Employees’ Retirement Plan

 

General American Investors Company, Inc. Employees’ Thrift Plan

 

 

This Endorsement applies to loss discovered after 12:01 a.m. on June 15, 2016.

 

ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.

 

Date: May 23, 2016

 

 

   

ICAP Bond

 

Form 17-02-0949 (Rev. 1-97)

Page 1

 


 

 

           

 

 

 

 

FEDERAL INSURANCE COMPANY

 

 

 

 

 

Endorsement No.: 2

 

 

 

 

 

Bond Number:

80911610

 

 

 

NAME OF ASSURED: GENERAL AMERICAN INVESTORS COMPANY INC

 

 

NEW YORK AMENDATORY ENDORSEMENT

 

It is agreed that this Bond is amended as follows:

 

1

.

By adding to Section 13, Termination, the following:

 

 

 

Bonds In Effect Sixty (60) Days Or Less

 

 

 

If this Bond has been in effect for less than sixty (60) days and if it is not a renewal Bond, the

 

 

COMPANY may terminate it for any reason by mailing or delivering to the ASSURED and to the

 

 

authorized agent or broker, if any, written notice of termination at least sixty (60) days before the

 

 

effective date of termination.

 

 

 

Bonds In Effect More Than Sixty (60) Days

 

 

 

If this Bond has been in effect for sixty (60) days or more, or if it is a renewal of a Bond issued by the

 

 

COMPANY, it may be terminated by the COMPANY by mailing or delivering to the ASSURED and to

 

 

the authorized agent or broker, if any, written notice of termination at least sixty (60) days before the

 

 

effective date of termination. Furthermore, when the Bond is a renewal or has been in effect for sixty

 

 

(60) days or more, the COMPANY may terminate only for one or more of the reasons stated in 1-7

 

 

below.

 

 

 

1

.

Nonpayment of premium;

 

 

 

2

.

Conviction of a crime arising out of acts increasing the hazard insured against ;

 

 

3

.

Discovery of fraud or material misrepresentation in the obtaining of this Bond or in the

 

 

 

 

presentation of a claim thereunder;

 

 

 

4

.

Violation of any provision of this Bond that substantially and materially increases the hazard

 

 

 

 

insured against, and which occurred subsequent to inception of the current BOND PERIOD;

 

 

5

.

If applicable, material physical change in the property insured, occurring after issuance or last

 

 

 

 

annual renewal anniversary date of this Bond, which results in the property becoming uninsurable

 

 

 

 

in accordance with the COMPANY's objective, uniformly applied underwriting standards in effect

 

 

 

 

at the time this Bond was issued or last renewed; or material change in the nature or extent of this

 

 

 

 

Bond occurring after issuance or last annual renewal anniversary date of this Bond, which causes

 

 

 

 

the risk of loss to be substantially and materially increased beyond that contemplated at the time

 

 

 

 

this Bond was issued or last renewed;

 

 

   

ICAP Bond - New York

 

Form 17-02-2863 (Rev. 7-03)

Page 1

 


 

 

           

 

 

6

.

A determination by the Superintendent of Insurance that continuation of the present premium

 

 

 

 

volume of the COMPANY would jeopardize the COMPANY's policyholders, creditors or the public,

 

 

 

 

or continuing the Bond itself would place the COMPANY in violation of any provision of the New

 

 

 

 

York Insurance Code; or

 

 

7

.

Where the COMPANY has reason to believe, in good faith and with sufficient cause, that there is

 

 

 

 

a probable risk or danger that the Property will be destroyed by the ASSURED for the purpose of

 

 

 

 

collecting the insurance proceeds.

 

 

Notice Of Termination

 

 

Notice of termination under this SECTION shall be mailed to the ASSURED and to the authorized agent

 

 

or broker, if any, at the address shown on the DECLARATIONS of this Bond. The COMPANY,

 

 

however, may deliver any notice instead of mailing it.

 

 

Return Premium Calculations

 

 

The COMPANY shall refund the unearned premium computed pro rata if this Bond is terminated by the

 

 

COMPANY."

2

.

By adding a new Section reading as follows:

 

 

"Section 17. Election To Conditionally Renew / Nonrenew This Bond

 

 

Conditional Renewal

 

 

If the COMPANY conditionally renews this Bond subject to:

 

 

1

.

Change of limits of liability ;

 

 

2

.

Change in type of coverage;

 

 

3

.

Reduction of coverage;

 

 

4

.

Increased deductible;

 

 

5

.

Addition of exclusion; or

 

 

6

.

Increased premiums in excess of 10%, exclusive of any premium increase due to and

 

 

 

 

commensurate with insured value added; or as a result of experience rating, retrospective rating

 

 

 

 

or audit; the COMPANY shall send notice as provided in Notices Of Nonrenewal And Conditional

 

 

 

 

Renewal immediately below.

 

 

Notices Of Nonrenewal And Conditional Renewal

 

 

1

.

If the COMPANY elects not to renew this Bond, or to conditionally renew this Bond as provided

 

 

 

 

herein, the COMPANY shall mail or deliver written notice to the ASSURED at least sixty (60) but

 

 

 

 

not more than one hundred twenty (120) days before:

 

 

 

 

a.

The expiration date; or

 

 

 

 

b.

The anniversary date if this Bond has been written for a term of more than one year.

 

   

ICAP Bond - New York

 

Form 17-02-2863 (Rev. 7-03)

Page 2

 


 

 

         

 

 

2

.

Notice shall be mailed or delivered to the ASSURED at the address shown on the

 

 

 

 

DECLARATIONS of this Bond and the authorized agent or broker, if any. If notice is mailed, proof

 

 

 

 

of mailing shall be sufficient proof of notice.

 

 

3

.

Paragraphs 1. and 2. immediately above shall not apply when the ASSURED, authorized agent or

 

 

 

 

broker, or another insurer has mailed or delivered written notice to the COMPANY that the Bond

 

 

 

 

has been replaced or is no longer desired.

3

.

By adding to General Agreement B., Representations Made By Assured, the following:

 

 

No misrepresentation shall be deemed material unless knowledge by the COMPANY would have lead

 

 

to the COMPANY'S refusal to write this Bond.

 

 

 

 

This Endorsement applies to loss discovered after 12:01 a.m. on June 15, 2016.

 

 

 

 

ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.

 

Date: May 23, 2016

 

 

   

ICAP Bond - New York

 

Form 17-02-2863 (Rev. 7-03)

Page 3

 


 

 

         

 

 

 

 

ENDORSEMENT/RIDER

Effective date of

 

 

this endorsement/rider: June 15, 2016

FEDERAL INSURANCE COMPANY

 

 

 

Endorsement/Rider No.

3

 

 

 

To be attached to and

 

 

 

 

form a part of Bond No.

80911610

 

 

Issued to: GENERAL AMERICAN INVESTORS COMPANY INC

 

 

 

DELETING VALUATION-OTHER PROPERTY AND AMENDING CHANGE OR MODIFICATION

ENDORSEMENT

In consideration of the premium charged, it is agreed that this Bond is amended as follows:

1

.

The paragraph titled Other Property in Section 9, Valuation, is deleted in its entirety.

2

.

The third paragraph in Section 16, Change or Modification, is deleted in its entirety and replaced

 

 

with the following:

 

 

 

 

If this Bond is for a joint ASSURED, no change or modification which would adversely affect the

 

 

rights of the ASSURED shall be effective prior to sixty (60) days after written notice has been

 

 

furnished to all insured Investment Companies and the Securities and Exchange Commission,

 

 

Washington, D.C., by the COMPANY.

 

 

 

 

The title and any headings in this endorsement/rider are solely for convenience and form no part of the

terms and conditions of coverage.

 

 

All other terms, conditions and limitations of this Bond shall remain unchanged.

 

 

 

17-02-2437 (12/2006) rev.

Page 1


 

 

   

 

ENDORSEMENT/RIDER

 

Effective date of

 

this endorsement/rider: June 15, 2016

FEDERAL INSURANCE COMPANY

 

Endorsement/Rider No. 4

 

To be attached to and

 

form a part of Policy No. 80911610

 

 

Issued to: GENERAL AMERICAN INVESTORS COMPANY INC

COMPLIANCE WITH APPLICABLE TRADE SANCTION LAWS

It is agreed that this insurance does not apply to the extent that trade or economic sanctions or other similar laws or

regulations prohibit the coverage provided by this insurance.

 

The title and any headings in this endorsement/rider are solely for convenience and form no part of the terms and

conditions of coverage.

 

All other terms, conditions and limitations of this Policy shall remain unchanged.

 

 

14-02-9228 (2/2010)

Page 1


 

 

         

 

 

 

 

ENDORSEMENT/RIDER

Effective date of

 

 

this endorsement/rider: June 15, 2016

FEDERAL INSURANCE COMPANY

 

 

 

Endorsement/Rider No.

5

 

 

 

To be attached to and

 

 

 

 

form a part of Bond No.

80911610

 

Issued to: GENERAL AMERICAN INVESTORS COMPANY INC

 

NEW YORK AMENDATORY ENDORSEMENT

 

In consideration of the premium charged, it is agreed that:

 

1

.

Any reference in the policy to the Superintendent of Insurance is hereby deleted and replaced with

 

 

the Superintendent of Financial Services.

 

 

2

.

Any reference in the policy to the Insurance Department is hereby deleted and replaced with the

 

 

Department of Financial Services.

 

 

 

 

The title and any headings in this endorsement/rider are solely for convenience and form no part of the

terms and conditions of coverage.

 

 

All other terms, conditions and limitations of this Bond shall remain unchanged.

 

 

 

14-02-19952 (05/2013)

Page 1