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HomeMy WebLinkAbout1999-10-19; City Council; 15457; Officers And Employees Bonds- b CITY OF CARLSBAD - AGENDH BILL AB# TITLE: 15 -457 MTG. 10119/99 OFFICERS’ AND EMPLOYEES’ BONDS DEPT. RM RECOMMENDED ACTION: Introduce Ordinance No. NS-510 amending Title 2, Section 2.08.040 of the Carlsbad Municipal Code, and approve Resolution No. 9 9-4 7 3 requiring bonds of all officers and employees not required by State statute to provide bonds, authorizing coverage of all officers and employees required to give bond under one master bond, establishing the amount, form and term of the bond, and approving the master bond. ITEM EXPLANATION: Carlsbad Municipal Code section 2.08.040 requires bonds for the City Treasurer and City Clerk for the faithful discharge of their duties. This section of the code also requires an employee honesty bond. The honesty bond covers loss of money or other property resulting from dishonesty of an employee. The faithful performance bond covers loss through the failure of any employee to faithfully perform his or her duties. This coverage is an endorsement to the honesty bond and goes further than the honesty bond by providing coverage when a person is held responsible for loss of property, including money, entrusted to him even though he has been entirely honest in his conduct. For the officials required by law to give bond for the faithful performance of service, the faithful performance coverage also provides indemnification to them against dishonest acts of persons who serve under them. The Government Code requires approval of the amount, term and form of the bond. In addition, it requires that the City Clerk, City Treasurer and Finance Director each execute bonds to the City. However, the Government Code allows the City to adopt a resolution approving coverage of all officers and employees required to give bond, under one master bond. The faithful performance coverage is an endorsement to the employee honesty bond and applies to all officers and employees. As a result, staff recommends (1) introduction of the ordinance shown in Exhibit 1 to allow the requirement for bonds to be met by a master bond applicable to all city officers and employees, the amount and term of which may be set by Council resolution; (2) addition of the Finance Director to the requirement for faithful performance coverage and authorizing the Finance Director to pay the premium annually; (3) approval of the resolution shown as Exhibit 3 to approve coverage of all officers and employees required to give bond, under one master bond; and (4) approval of the bond shown as Exhibit 4 in the amount of $l,OOO,OOO. FISCAL IMPACT: None. EXHIBITS: 1. Ordinance No. azs-51 n 2. Redline/Strikeout Version of Chapter 2.08 Section 2.08.040 3. Resolution No. 99-473 4. Public Employee Blanket Bond : ‘i ..- , 1 l I 1c 11 li l? 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 1 2 3 4 5 5 7 3 3 1 b ORDINANCE NO. NS-510 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA AMENDING SECTION 2.08.040 OF THE CARLSBAD MUNICIPAL CODE PERTAINING TO OFFICERS’ AND EMPLOYEES’ BONDS The City Council of the City of Carlsbad, California does ordain as follows: SECTION I: That section 2.08.040 of the Carlsbad Municipal Code is amended to read as follows: “2.08.040 Officers and emolovees bonds. (a) Wherever individual bonds are required for specified officers. or employees of the City, they may be provided in the form of a master official bond applicable to all other City officers and employees. (b) The City Clerk, City Treasurer and Finance Director, shall provide honesty and faithful discharge bonds regarding the duties imposed on their offices, . . . . . . . . . . . . . . . ..- . . . . . . . . . . . . . . . . . . . . . ; I . 4 c . f 7 & 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 , in the amount recommended by the City Attorney pursuant to Government Code section 36518 and as set forth in a resolution adopted by the City Council. (c) The Finance Director is authorized and directed to pay the premium annually for any official bonds authorized or required by this section.” EFFECTIVE DATE: This ordinance shall be effective thirty days after its adoption, and the City Clerk shall certify the adoption of this ordinance and cause it to be published at least once in a newspaper of general circulation in the City of Carlsbad within fifteen days after its adoption. INTRODUCED AND FIRST READ at a regular meeting of the Carlsbad City Council on the 26th day of October , 1999, and thereafter PASSED AND ADOPTED at a regular meeting of the City Council of the City of Carlsbad on the - day of , 1999, by the following vote, to wit: AYES: NOES: ABSENT: APPROVED AS TO FORM AND LEGALITY RONALD R. BALL, City Attorney CLAUDE A. LEWIS, Mayor ATTEST: ALETHA L. RAUTENKRANZ, City Clerk (SEAL) ’ 2 h \ I REDLINE/STRIKEOUT VERSION 2.08.040 Officers’ and employees’ bonds. (a) Wherever individual bonds are required for specified officers or employees of the city, they ‘may be provided in the form ,of a ma&x official bond applicable to all other city officers and emptoyees )krr (b) The City ClerkCity Treasurer and Finance Director, shall provide honesty and l%&+w%e faithful discharge bonds regarding the &heir duties imposed on their offices, in the amount recommended by the City Attorney pursuant to Government Code section 36518 and as set:forth in a resolution adopted by the City Council. shaltbe #Tr VI u! 3c [)8888 L-u, - lziJg&g,g 03 The Finance;Dr”rectot isauthonied and directed to pay the premium REDLINE/STRIKEOUT ATTACHMENT 1 RESOLUTION NO. 99-473 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, REQUIRING BONDS OF ALL OFFICERS AND EMPLOYEES NOT REQUIRED BY STATE STATUTE TO PROVIDE BONDS, AUTHORIZING PROVISION OF ALL REQUIRED BONDS BY A MASTER OFFICIAL BOND, ESTABLISHING THE AMOUNT, FORM, AND TERM OF THE BOND. AND APPROVING THE MASTER OFFICIAL BOND 7 WHEREAS, Government Code Section 1481 (b) allows the City Council to 8 adopt a resolution approving coverage of all officers and employees required to give 9 bond, under one master bond; and 10 11 WHEREAS, a resolution approving coverage of all officers and 12 employees required to give bond, under one master bond, enhances administrative 13 efficiency; and 14 WHEREAS, Government Code section 36519 authorizes the City Council 15 to require bonds, including faithful performance bonds, of those officers and employees 16 who are not otherwise required by state statute to provide bonds; and 17 18 WHEREAS, Government Code sections 1480,148l and 36519 require the City Council to specify the form, amount and term of such bond, including 19 20 21 22 23 24 25 allowance for satisfaction of all bond requirements by a “master official bond”; and WHEREAS, Government Code section 36520 requires the City Council to approve such bond; and WHEREAS, Government Code section 36518 requires the City Council to 26 receive the recommendation of the City Attorney with regard to, and then establish the amount of, such bond with regard to the City Clerk, City Treasurer and Finance Director; and 27 II 28 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 - WHEREAS, the City Attorney has recommended satisfaction of such bond requirements with a master official bond in the amount of $1 million (one million) for the specified officers and all other officers and employees, NOW;THEREFORE, be it resolved: 1. The above recitations are true and correct. 2. That all other officers and employees not required by state law to provide bonds shall provide bonds, in addition to the officers specified in Carlsbad Municipal Code section 208.040. 3. All requirements for individual or other bonds required by state law or City ordinance or this resolution may be satisfied by coverage by a “master official bond”. 4. The amount of the master official bond shall be $1 million (one million). 5. The form of the bond shall be a master official bond for honesty and the faithful performance of the duties imposed on the officer or employee, covering the breach of any of the conditions of the bond, including but not limited to the faithful discharge of all duties of the position added by law after execution of the bond, by the officer or employee covered, or any deputy, clerk or employee of the officer or employee covered (except as specified in Government Code section 1504(b)). 6. The term of the bond shall be one year from execution of the bond by the Finance Director, who is hereby authorized and directed to execute the bond on behalf of the City, and pay the premium for said master official bond for all officers and employees covered. 2 - 7. That the master official bond, attached hereto marked Exhibit “A”, is 2 hereby approved, and the City Clerk is hereby authorized and directed pursuant to 3 Government Code section 36520 to file the master official bond in the office of the City 4 II Clerk. 5 PASSED, APPROVED AND ADOPTED at a regular meeting of the City 6 Council of the City of Carlsbad held on the 26th day of October 7 I 8 1999 by the following vote, to wit: 9 AYES: Council Members Lewis, Hall, Finnila, Nygaard and Kulchin 10 NOES: None 11 12 13 14 ABSENT: None i; ik Karen R. Kundtz, Assistan; City Clerk 18 (SEAL) 19 20 21 22 23 24 25 26 II 27 28 3 CRIME POLICY DECLARATIONS - EXHIBIT 4 FORM A ~. Exhibit "A" dn Resolution Number 99-473 This Policy consists of this Declarations Form, the Common Policy Conditions, the Crime General Provrsrons Forma&i the Coverage Forms indicated as applicable. Policy No. 606 96 93-I This Policy Issued by: 0 Fidelity and Deposit Company of Maryland ’ Cl Fidelity and Deposit Company IN RETURN FOR THE PAYMENT OF THE PREMIUM. AND SUBJECT TO ALL THE TERMS OF THIS POLICY, WE AGREE WITH YOU TO PROVIDE THE INSURANCE AS STATED IN THIS POLICY. 1. 2. 3. 4. NAMED INSURED: c1m OF CARGSBAD ,CART..SDADPARKIgGAUTHORITY CAJLSBADBUILDING ADTHORITY&EOUSINGANDReDEwL~ =?if SON; CAIUBAD I(EIIzvELOPMENT AGENCY~~~ b(c8 rr\wc\;Cig wk ~;s4-&+- MAILING ADDRESS: POLICY PERIOD: From 1200 Carl&ad Village Drive, Carlshad, San Diego,CA 92008 (No.. Street. Town or City. County. State. Zip Code) ( ,I , .J h .-“-.a 8 :L.y\l,: ;iJsJ( (, \ 12 ) April 16, 1989 Until Cancelled (1231 A.M. Standard Time at your mailing adgess shown above) COVERAGE, LIMITS OF INSURANCE AND DEDUCTIBLE Coverage Forms Forming Part at this Policy .., Limit ot lnrurancs Deductible Amount FORM A - Employee Dishonesty Coverage Form . . . . _ . . . . . _ . . . . . . . . . . . . . . _. . . . . . $ - FORM B - Forgery or Alteration Coverage Form . . . . . . . . . . . . _ . . . . . . _. . . _ _ _ . . . _ _ . $ - FORM C - Theft, Disappearance, and Destruction Coverage Form Section 1. - Inside the Premises . . . . . . _ . . . . . . . . . . . . . . . . . . . . . . . . . . . $ - 3 - Section 2. - Outside the Premises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _ . $ ; $ - FORM D - Robbery and Safe Burglary Coverage Form Section 1. - Inside the Premises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Section 2. - Outside the Premises ..,....................i......... 3 - 5 - Additional Coverage Forms FORXO- Public Employee Dishonesty Coverage Few $ 1.500.000. $ 25,000. s " s : 5. ENDORSEMENTS FORMING PART OF THIS POLICY WHEN ISSUED: F668a, Rider A BROKER’S copy 6. CANCELLATION OF PRIOR INSURANCE: By acceptance of this Policy you give us notice cancelling prior policy or bond Nos. (1-a the cancellation to be effective at the time this Policy becomes effective. COUNTERSIGNED 4-J2P7ci BY * (Dale) CITAPM IFn lA7\ lnrldm mmrioNul mAuial d I- -ffilw!lrilkik#u#akim rnrimld l-n.r-nftim ku lm ml coMNERuALcRlME NAME0 INSURED: City of (&Wad, Carl&4 Park& Allthdy etal POLICY NUMBER: CCP 6069693 THE ENDORSEMENT CHANGES THE POLICY. PLEASE READ ITCAREFULLY. POLICY CHANGE (LOSS SUSTAINED FORM) Policy Change No. Dateofl~ EffOdiWWOf~: A 3 iifunm 1201 ‘AM. #MB8 0 9. 0 2. 0 3. a 4. 069 El60 El 7. meb4afnadhauredlrch~w Then f0llOwlng,Insumd(s) la added as a Named I- The foltowlng Insufd(s) is delded as a Named Insured: Thah&lhgAddresalachangedbo: ThePoIbyPefiodls exkndedb ormducedb The fokwing C3wemge Fm(s) Is q M~tottlePollcy q DdtedltomtheFdiey El changed a3 reapecta the umlqs) of Ins- and/or Deducubla Amount(s) Lbn#ofInwrance -=JWF- LJdtofllls4Jranae or sedan1 seetbn2 S S 5. DeductwAmount cmwageFwm Deductlbb Amount Or sectIon secooflz S S S mclbllowing Enclarssmcnt(s) Is El AfldadtothePolicy Cl DeletecifromthePolicy q changedas~theurnit(s)oflnauraKle UmitdlfIsu~ .- Llmltofbrrun~ or 9ectlont sdon2 cR104412%4 $1,ooo,aIo.00 t s CR10640996 CR5Ooj 0197 Copyright, Insurance Services Office, Inc., 19H Copyright. The Surety Associatkm of America, 1996 CR-A-1 Page I of 2 -- COMMERCIAL CRIME lFtlS ENDQRSEMEW CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADD FAITHFUL PERFORMANCE OF DUTY This cm- applies only to PUBUC EMPLOYEE DISHONESTY COVERAQE FORM 0 or P. ThefolluwlngisaddsdasaCoveredCauseofLoss: Fail~,~any”emplayes*bfai~Hypcrformhisarherd~ssgrescrlbedbylaw,whensuchlLailurehasasikdired snd lrnmediatb result a low of your Cowed Property. The folIowIng Addll~Ex&sion is addd: ~~failure:~rasultingfiom~faikrreafany~~actingasaU~foryowpropertyorpropertyfot whlctl you am rwponsible. Pa02a(l)ofthaCoY*r;rgeFormis~and~IbRowingsuhsbmned; hmdiWy upon dismviry by you of any ok!ldal or employee authorksd to manage, govern oramW your employees dfanyactonthcpartofan”e~ee”whethff~ora~becomhgemployedtryyouwhlchwauldconshMea IOSS Qovered underthe banns ofthis Coverage FOITQ as amsndsd by this endowmsnt Pat D.2.c. of the Coverage Form Is deleted and the Wkwing subsUtuW Inderm~W6WRflindemnHyanyofyowomcialswnoarerequicedbylawlpgivehndsfor~faithfulperform- ance of their sewice against lo& through the failure of any %mploye# under the supawision of that o?kial to Whfulty pe&rmhisorherdutlesaspresaded bylaw,whenwchfaituFchasrrs#sdirectandimmsdlateresurabssofyour Coved Props&y. 5. Coverage undtrthis end ofsemnt is limited to $1 ,OOO,OOO.OO this is part o# and not in addition to the limit of insurance covered under the pdicy. CR10441293 COnmMERClAL CRIME NAMED INSURED: City of Carl&ad, Carlsbad Parking Authority POLICY NUMBER: CCP 9069993 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. POLICY CHANGE (LOSS SUSTAINED FORM) Policy Change No. 2 Date of Issue: 01l27BB EtIbctive Date of Chanae: 12:Ol AM. 4W98 A SCHEDULE’ 0 1. 02 The Named Insured is changed to: The following Insured(s) is added as a Named Insured: 0 3. The following Insured(s) is deleted as a Named Insured: cl 4. 0 5. tl 6. The Mailing Address is changed to: me Policy Period is: extended to OfredUCZdtO The following Coverage Form(s) is: Cl Added to the Policy El Deleted from the Policy Cl Changed as respects the Limit(s) of Insurance and/or Deductible Amount(s) Limit Of Insurance Covemge Form Limit of Insurance or SeCthIll section2 S S S Deductible Amount Coverage Form Deductible Amount or Section1 Section 2 $ s s El 7. The following Endorsement(s) is: lZl Added to the Policy 0 DeletedfromthePolii ’ c7 Changed as respects the Limit(s) of Insurance Endorsement Lhit of Insurance CR10441293 s CR10940598 Limit of Insurance or section1 Section2 $ $ RECEIVED FEB 0 2 1999 l lnbmation required to complete thii Schedule, if not shown on this Endowment, will be shwn in the Dedaratbns. CR 50 01 04 97 Copyright, Insurance Services Office, Inc., 1996 Copyright, The Surety Association of America, 1996 CR-A-l Page 1 of 2 COMMERCIAL CRIME THJS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADD FAITHFUL PERFORMANCE OF DUTY This endorsement applies only to PUBLIC EMPLOYEE DISHONESTY COVERAGE FORM 0 or P. PROVMONS 1. The following is added as a Covered Cause of Loss: Failure of any “employee” to faithfully perform his or her duties as prescribed by law, when such failure has as its direct and immediate result a loss of your Covered Property. 2. The following Additional Exclusion is added: Depsiiry Failure: loss resulting from the failure of any entjty acting as a depository for your property or property for which you are responsible. 3. Part D.2.a.(l) of the Coverage Form is deleted and the foIowing substituted: Immediately upon discovery by you or any official or employee author&A to manage, govern or control your employees of any act on the part of an “employee” whether before or after becoming employed by you which would constitute a loss covered under the terms of this Coverage Form, as amended by this endorsement 4. Part D.2.c. of the Coverage Form is deleted and the folbwiig substituted: Indemnification: We will indemnify any of your officials who are required by law to give bonds for the fail perform ante of their service against loss through the failure of any “employee” under the supervision of that official to i%htilly perForm his or her duties as prescribed by law, when such failure has as its direct and immediate result a loss of your covered Property. - . -3 / c ,., ! CR10441293 NOTICE TO POLICYHOLDER NO COVERAGE IS PROVlDED BY THIS POLICYHOLDER NOllCE NOR CAN lT BE CONSTRUED TO REPLACE ANY PROVISION OF YOUR POLICY. YOU SHOULD READ YOUR POLICY AND REVIEW YOUR DECLARATlONS PAGE FOR COMPLETE INFORMATlON ON THE COVERAGE YOU ARE PROVIDED. IF THERE IS ANY CONFLICT BE- TWEEN THE POLICY AND THIS SUMMARY, THE PROVISIONS OF THE POLICY SHALL PREVAIL. THIS NOTlCE HAS BEEN PREPARED H CONJUNCTION WITH THE IMPLEMENTATION OF CHANGES TO YOUR POLICY. THIS NOllCE PROVIDES INFORMAllON CONCERNING YOUR INSURANCE COVERAGE WiTH RESPECT TO CLAIMS ARlSlNG OUT OF THE INABlupl OF ANY COMPUTER HARDWARE, OTHER COMPUTUUZED OR ELEC- TRONIC COMPONENTS, OR SOFTWARE APPLICATIONS TO CORRECTLY PROCESS OR USE DATERELATED INFORMATION. PLEASE READ THIS NOTlCE CAREFULLY. Men the year 2000 arrives, it is anticipated that many computer systems, computer-related systems and other electronic components, software applications and operating systems will fail to process date information correctly. This is because they may have been programmed to store and process only the last two digits of the year in date information. The computer auto- matically assumes that the first two digits are 19. Hence, today, a computer “sees” 98, and assumes that the year is 1998. When the year 2000 arrives, it may only be able to read the 00 in the year data, and therefore may incorrectly assume that the year is 1900.8y way of example, for a person born in 1970, the computer would calculate the person’s age in 1999 as tiWws: 99-70=2syearsokl In the year 2000, however, this person’s age might be calculated as follows: 00 - 70 = -70 years old (negative 70 years old) This problem is critical because programmers who are capable .of fixing this problem are becoming scarce and the problem has to be corrected before the year 2000. Unwrr&tecl, resulting losses may range from lost or comrpted data to damaged inventory. For example, some computers that monitor perishable inventory i-nay destroy inventory as being too old or spoiled when, in actual&y, the inventory has not expired. There could be claims for injury to persons as well. For example, wmputer- bed medkal equipment may read dates inconztly and malfunction, causing injury to patients who rety on that equipment In addition, various other date-related problems may affect computer systems, computer-related systems and other elec- tronic components, soltware applications and operating systems. These problems may arise either before or after the year 2000. Your business may be affected by the year 2000 problem or other date-related problems. Many wrnputets, computer- related systems or other electronic components may experience such problems, and the size, number and specific types of these problems may vary greatly. These problems could range from the failure of a mainframe computer system to operate properly to the malfunction of a computer&d fire protection sprinkler system. Since each situation is unique, it is impossible to predict the various computer-related and other electronic problems that you may experience due to the year 2000 prob- lem and other date related problems. It is important that you examine and evaluate your current situation on an indiiidual ba- sis. It may be necessary for a qualified pmtkssional computer consultant to analyze your computer systems, computer-related systems and other electronic components, soflware applications and operating systems for such prob lems. It may be prudent for you to consult such a professional. At renewal, pending state approval, one or more endorsements WitJecl Exclusion - Year 2000 and Other Date-Related Problems will be attached to your policy. (At ‘ksuance, your renewal polii may not contain these endorsements be- cause the regukwy authodty in your state has not yet approved it However, if that regulatory authority subsequently approves these endorsements for an efkctive date not later than the inception date of your renewal policy, we will then attach the endorsements to your policy to be effective as of its inception date by means of a Policy Change. Oth- erwise, another endorsement that addresses the Year 2000 exposure may be attached to your nwewal policy.) For this reason, except as specifically prescribed in any exceptions that may be contained in such endorsement@), wverage is ex- cluded for any claim, loss, cost or expense arising out of any injury or damage caused by or related in any way to the inability or potential inability of any computer hardware, other computer&d or electronic components, software applications or oper- ating systems to correctly process or use year 2000 or other date-related information. Please read the endorsement(s) care- rUliy to determine the scope of any exceptions that may apply to the exclusion. isophn COMMERClALCRME THIS ENDORSEMENT CHANGES THE POLICY, PLEASE READ IT CAREFULLY EXCLUDE LOSS FROM CERTAIN COMPUTER ERRORS This endorsement applies onty to PUBLIC EMPLOYEE DISHONESTY COVERAGE FORM 0 or P induding any Faithful Performance of duty endorsement PROVISIONS 1. The following Additional Exdusion is added: , f. Certain Computer Erms: loss resulting directly or indirecUy, in whole or in part, liom the failure of any computer, computer system or wmponent thereof, embedded chip, microprocessor, or similar eledmnii device wnectiy to recognize, interpret or accept a date which is subsequent to December 31, 1999 or accurately to process data or perform any other function because of such a failure. This exclusion applies without regard to ownership of the computer, computer system, chip, microprocessor or similar device; whether or not another cause or event, indud- ing any act, omission or failure of any Employee, also contributed to the loss; and to the cost of any test, diagnosis, repair, advice, design, or reprograming to d&over, guard against or correct such a failure. CR 106405~8 0 The Surety Association of America me w D a CALIFORNIA PREMIUM RIDER Home Offices P.O. Box 1227 Baltimore, MD 21203 If this form is issued concurrently with the bond, this Attaching Clause need not be completed. INSURED X Fidelity & Deposit Company of Maryland Colonial American Casualty & Surety Company - CITY OF CARLSBAD, CARLBAD PARKING AUTHORITY I BOND NO. EFFECTIVE DATE OF RIDER CCP 606 96 93 APRIL 16.1998 (Company designated by X in box) It is agreed that: 1. In compliance with the ruling of the Commissioner of Insurance of the State of California and the Opinion of the Attorney General of that State requiring that the premium for all bonds or policies be endorsed thereon, the basic premium charged for the attached bond for the period from 04/l 6/l 998 t 04/l 6/2001 is SEVEN THOUSAND SEVEN Dollars ( $7,740. ). 0 HUNDRED FORTY AND NO/l 00 PAYABLE IN THREE EQUAL ANNUAL INSTALLMENTS OF $2.580.00 ATTEST r J&-Jp~ Secretary FIDELITY AND DEPOSIT COMPANY OF MARYLAND COLONIAL AMERICAN CASUALTY AND SURETY COMPANY BY President Countersigned RECEIVE0 FEB2 4 1998 WC--O211 9198 F666cWOO. 5-94 California Premium Rider _ For use with all forms of standard bonds. to comply with rulings of the Insurance Commissioner and the Attorney-Ganeral. Revised to August. 1966. SR 5662 CALIFORNIA PREMIUM RIDER Hnmc Ot’tificcs P.O. Box 1217 Balrimorc. Md. Z I203 Cotipanies If this form is issued concurrently with the bond. this Attaching Clause need not be completed. INSURED & Fidelity and Deposit Company of Maryland llTTY OF CA TNI: gLTTRnRTTY 0 Colonial American Casualty and Surety Company BOND NO. EFFECTIVE DATEOF RIDER 6069693-I (Company designntcd by X in box) It is agreed that: 1. In compliance with the ruling of the Commissioner of Insurance of the State of California and the Opinion of the Attorney General of that State requiring that the premium for all bonds or policies be endorsed thereon. the basic premium charged for the attached bond for the period from ___-_ -&&.-16~&!~~------- __-_ - ________ --__-__-- __________ to.--- __-_- - -------------------- --- &ril 16 1998 - .----A- __-_ -__--- ---- 4 -------------- ------_ is--s-~~~~_~~o~~~~~~~~~~~Q~~~~~~--~~J-Q-~~-==-~ilars (J--_L,_2_411_,_--_-_,). Payable $2,580. in advance and $2,580. each anniversary FIDELITY AND DEPOSIT COMPANY OF MARYLAND COLONIALAMERICANCASUALTY AND SURETYCOMPANY Secretary President Countersigned by: _----__ . RECEIVED API? 10 1%!!i Hir -:ehc I. jnit Crlikrnia Premium Hi&r--Rv us with ali kwmr cd sutdad bonds. to comply with Nllnpr n( rhc Inw,nncc CIJmm,u,mur ad lhc .4noIll.=y-ocnenl. Rcwvd 90 *upus,. IWII. SR JW CALIFORNIA PREMTUM RIDER Home Offices P-0. Box 1227 Baltimore, Md. 21203 INSURED If this form is issued concurrently with the bond, this Attaching Qause need not be completed. CITY OF CARLSZAD; CARLSaAD PARKII?G AUTEIORITI' fi Fidelity and Deposit Company of Maryland q Colonial American Casualty and Surety Company BoND No- 6069693- 1 DATE OF RIDER (Company designated by X in box) It is agreed that: 1. In compliance with the ruling of the Commissioner of Insuran~ of the State of Caliiomia and the Opiion of the At- tomey General of that State requiring that the premium for all bonds or policies be endorsed thereon, the basic premium charged for the attached bond for the period fkom----,----?- _____ ---_- -__-_ -- _-_________- April 16 1992 April 15, 1995 to ----__ --a-- ------- Seven Thousand Seven Hundred Forty and No/100--------------7,~4~----- is-~~--82;-~~-~~a~~~i~~-=~~ (L-----------). FIDELITY AND DEPOSIT COMPANY OF MARYLAND COLONIAL AMERICAN CASUALTY AND SURETY COMPANY BY / President Countersigned by: _-- -_-____-______ - _________ Autborizcd Rq.mse~~tative Fe&-SM. 10412349sl ’ Frednm R&r-For us3 with all b of smdd km&. u) comply with EigEble tlsumwx tllmmkiirur ad Q .4tloraeyGcnuat. Revised to A*. 1968. SR 5862 POLICY NUMBER: City of Carlsbad 606 96 93-l cc 331 (7-88) THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. CR 50 01 07 88 POLICY CHANGE Date of Issue: 8-12-91 Effective Date of Change: ‘- ‘-’ T , as of the time the policy became effective. A. SCHEDULE* 0 1. The Name of Insured is changed to: $I 2. The following Insured(s) is added to the Named Insured: tar . . DlQtrl rt 0 3. The following Insured(s) is deleted from the Named Insured: 0 4. The Mailing Address is changed to: q 5. The Policy Period is changed to: 0 6. The Limit of Insurance is changed to: Coverage Form Limit of Insurance Section 1 Section 2 0 7. The Deductible Amount is changed to: Coverage Form Deductible Amount Section 1 Section 2 0 8. The following Coverage Form(s) or Endorsement(s) is added: 0 9. The following Coverage Form(s) or Endorsement(s) is deleted: B. PROVISIONS 1. The Declarations Form is amended as shown in the SCHEDULE. 2. Application of changes affected by this Change Endorsement: a. Addition of a Deductible or Increase in Deductible Amount: This change applies to loss or damage result- ingfrom acts committed or events occurring at any time, whether before or after the Effective Date of Change. b. Deletion or Restriction (other than in a. above) of any Coverage or Decrease in any Limit of Insurance: This change applies to loss or damage resulting from acts committed or events occurring: (1) On or after the Effective Date of Change, and also (2) Before the Effective Date of Change if discovered after one year from that date. c. All Changes Other Than in a. and b. Above: This change applies to loss or damage resulting from acts com- mitted or events occurring on or after the Effective Date of Change 3. C. /TP’-.‘T-i- No Limit of Insurance during any period will be cumulative with any otfier afnoont a&k&l.e to the same cover- age during any other period. .t: j; r:2 : a -’ 4 y J.;;; Accepted: *Information required to complete this SCHEDULE, if not shown on this endoiSii$h~;t$e;shown in the Declarations. Copyright, Insurance Services Office, Inc., 1983, 1988 CALIFORNIA PREMIUM RIDER INSURED If this form ia issued concurrently with the bond, this Attaching Clause need not he completed. BOND NO. EFFECTIVE DATE OF‘RIDER It is agreed that: 1. In compliance with the ruling of the Commissioner of Insurance of the State of California and the Opinion of the Attorney-General of that State requiring that the premium for all bonds or policies be endorsed thereon, the basic premium charged for the attached bond for the period from April 16, 1989 lo Aoril 16. 1992 ia Five Thousand Seven Hundred Seventy Two and No/ 100 Dollars IS 5,772. Payable $1324. ln advance and 91,924. each anniversary I. FIDELITY AND DEPOSIT COMPANY OF MARYLAND By: F66&- Wiforni~ Pmnium Rider-For uy with all loma 01 rundud boa&, to marply 6th ndii of Ihe lrmv~oe Gunmiuiaau and the Anom&enenl. fbid to A-. I%& SR 5&z . me ( JZD 0 & ENDORSEMENT No.2 W3JRED If this form is issued concurrently with the policy, this Attaching Clause need not be completed. I POLICY NO. EFFECTIVE DATE m txRe3sDRRATSrn a? THR pIu%Itm CBAR6RITSS~RRSTUUD&- TEAT PUBLIC lMP!AUXER DIMStTP CW’RRAGE PORS 0 SECTLOl? D ld ; ISA?@XDRDTOLNcctfDE-&TAX COUECPORWOARRHOT Rx- By LAW Tu BR Ix?DIvsmmT -, BP Tm INSURED. FIDELITY AND DEPOSIT COMPANY OF MARYLAND Sccrelary Countersigned by: _________--- !-i ----------------------------------------~--..-- Authorid Re~rescdalrve F229e LotA. 3-M 223977 CR 00 16 01 89 cc 127 (l-89) PUBLIC EMPLOYEE DISHONESTY COVERAGE FORM (COVERAGE FORM O-PER LOSS) A. COVERAGE . We will pay for loss of, and loss from damage to, Cov- ered Property resulting directly from the Covered Cause of Loss. 1. 2. 3. Covered Property: “Money”, “securities: and “prop- erty other than money and securities’: Covered Cause of Loss: “Employee dishonesty”. Coverage Extension Employees Temporarily Outside Coverage Terri- tory: We will pay for loss caused by any “employee” while temporarily outside the territory specified in the Territory General Condition for a period not more than 90 days. B. LIMIT OF INSURANCE The most we will pay for loss in any one ‘bccurrence” is the applicable Limit of Insurance shown in the DECLARATIONS. C. DEDUCTIBLE 1. We will not pay for loss in any one “occurrence’ unless the amount of loss exceeds the Deductible Amount shown in the DECLARATIONS. We will then pay the amount of loss in excess of the De- ductible Amount, up to the Limit of Insurance. 2. You must: a. Give us notice as soon as possible of any loss of the type insured under this Coverage Form even though it falls entirely within the Deduct- ible Amount. b. Upon our request, give us a statement describing the loss. D. ADDITIONAL EXCLUSIONS, CONDITIONS AND DEFINITIONS: In addition to the provisions in the Crime General Provisions Form, this Coverage Form is subject to the following: 1. Additional Exclusions: We will not pay for loss or damages as specified below: a. b. C. d. Employee Cancelled Under Prior Insurance: loss caused by any “employee” for whom simi- lar prior insurance has been cancelled and not reinstated since the last such cancellation. Inventory Shortages: loss, or that part of any loss, the proof of which as to its existence or amount is dependent upon: (1) An inventory computation; or (2) A profit and loss computation. Bonded Employee: loss caused by any “em- ployee” required by law to be individually bonded. Treasurer or Tax Collector: loss caused by a treasurer o-by whatever nime e. Damages: damages for which you are legally liable as a result of: (1) the deprivation or violation of the civil rights of any person by an “employee”; or (2) the tortious conduct of an “employee”, ex- cept conversion of property of other par- ties held by you in any capacity, 2. Additional Conditions: a. b. C. Cancellation As To Any Employee: This insurance is cancelled as to any “em- ployee”: (1) Immediately upon discovery by you or any official or employee authorized to man- age, govern or control your employees, of any dishonest act committed by that ‘em- ployee” whether before or after becoming employed by you. (2) On the date specified in a notice mailed to you. That date will be at least 30 days after the date of mailing. The mailing of notice to you at the last mail- ing address known to us will be sufficient proof of notice. Delivery of notice is the same as mailing. Sole Benefit: This insurance is for your sole benefit. No legal proceeding of any kind to re- cover on account of loss under this coverage may be brought by anyone other than you. Indemnification: We will indemnify any of your officials who are required by law to give bonds for the faithful performance of their service against loss through dishonest acts of persons who serve under them, subject to the Limit of Insurance. 3. Additional Definitions a. “Employee Dishonesty” in paragraph A.2. means only dishonest acts committed by an “‘employee”, whether identified or not, acting alone or in collusion with other persons, with the manifest intent to: (1) Cause you to sustain loss; and also (2) Obtain financial benefit (other than sala- ries, commissions, fees, bonuses, promo tions, awards, profit sharing, pensions or other employee benefits earned in the normal course of employment) for: (a) The “employee”; or (b) Any person or organization intended by the “employee” to receive that benefit. b. “Occurrence” means all loss caused by, or involving, one or more “employees: whether the result of a single act or series of acts. 6. Fhwisiins 1. Application of changes affected by this Endorsement a. Addition Of A Deductible Or Increase In De- ductfife Amount This change applies to loss or damage result- ing from acts committed or events occurring at any time, whether before or after the Effective Date of Change. b. Deletion Or Restri&on (Other Than In a. Above) Of Any Coverage Or Decrease In Any Limit Of Insurance This change applies to loss or damage resulting from acts committed or events occurring. (1) On or after the Effective Date of Change; and also (2) Before the Effective Date of Change if dii coveted after one year from that date. c. All Changes Other Than In a. And b. Above This change applies to toss or damage result- ing from acts committed or events occurring on or after the Effective Date of Change. 2. No Limit of Insurance during any period will be cu- mulative with any other amount applicable to the same coverage during any other period. CR500q 0497 lib Copyright, Insurance Services Office, Inc., 1996 Copyright, The Surety Association of America, 1996 CR-A-2 AMM l/27/99 Page 2 of 2 CR10000186 (l-86) CRIME GENERAL PROVISIONS FORM Various provisions in this policy restrict coverage. Read the entire policy carefully todetermine rights, duties and what is or is not covered. Throughout this policy the words “you” and “your” refer to the Named Insured shown in the Declarations. The words “we”, “us” and “our” refer to the Company providing this insurance. Words and phrases in quotation marks are defined in the policy. Unless stated otherwise in any Crime Coverage Form, Declarations or endorsement, the following General Exclusions, Generat Conditions and General Definitions apply to all Crime Coverage Forms forming part of this policy. A. GENERAL EXCLUSIONS We will not pay for loss as specified below: 1. 2. Acts Committed by You or Your Partners: Loss re- sulting from any dishonest or criminal act com- mitted by you or any of your partners whether acting alone or in collusion with other persons. Governmental Action: Loss resulting from seizure or destruction of property by order of govern- mental authority. 3. Indirect loss: Loss that isan indirect result of any act or “occurrence” covered by this insurance including, but not limited to, loss resulting from: a. Your inability to realize income that you would have realized had there been no loss of, or loss from damage to, Covered Prop- erty. b. Payment of damages of any type for which you are legally liable. But, we will pay com- pensatory damages arising directly from a loss covered under this insurance. c. Payment of costs, feesor other expenses you incur in establishing either the existence or the amount of loss under this insurance. 4. legal Expenses: Expenses related to any legal action. 5. 6. Nuclear: Loss resulting from nuclear reaction, nuclear radiation or radioactive contamination, or any related act or incident. War and Similar Actions: Loss resulting from war, whether or not declared, warlike action, insur- rection, rebellion or revolution, or any related act or incident. 6. GENERAL CONDITIONS 1. Consolidation-Merger: If through consolidation or merger with, or purchase of assets of, some other entity: a. Any additional persons become “em- ployees”; or 2. 3. 4. a. Give us written notice within 30 days there- after; and b. Pay us an additional premium. Coverage Extensions: Unless stated otherwise in the Coverage Form, our liability underanycover- age Extension is part of, not in addition to, the Limit of Insurance applying to the Coverage or Coverage. Section. 1 Discovery Period for loss: We will pay only for covered loss discovered no later than one year from the end of the policy period. Duties in the Event of loss After you discover a loss or a situation that may result in loss of, or loss from damage to, Covered Property you must: a. Notify us as soon as possible. b. Submit to examination under oath at our request and give us a signed statement of your answers. c. Give usa detailed, sworn proof of loss within 120 days. d. Cooperate with us in the investigation and settlement of any claim. 5. Joint Insured a. If more than one Insured is named in the Declarations, the first Named Insured will act for itself and for every other Insured for all purposes of this insurance. If the first Named Insured ceases to be covered, then the next Named Insured will become the first Named Insured. b. If any Insured or partner or officer of that Insured has knowledge of any information relevant to this insurance, that knowledge is considered knowledge of every Insured. Copyright, Insurance Servtces Offlce. 1984 b. You acquire the use and control of any addi- tional “premises”; any insurance afforded for “employees” or “premises”alsoapplies to thoseadditional “em- ployees” and “premises”, but only if you: c. An “employee” of any Insued is considered , to be an “employee” of i / Insured. d. If this insurance or any of its coverages is cancelled or terminated as to any Insured, loss sustained by that Insured is covered only if discovered no later than one year from the date of that cancellation or termi- nation. e. We will not pay more for loss sustained by more than one Insured than the amount we would pay if all the loss had been sustained by one Insured. 6. legal Action Against Us: You may not bring any legal action against us involving loss: a. Unless you have complied with all the terms of this insurance; and b. Until 90 days after you have filed proof of loss with us; and c. Unless brought within 2 years from the date you discover the loss. 7. loss Covered Under More Than One Coverage of This Insurance If two or more coverages of this insurance apply to the same loss, we will pay the lesser of: a. The actual amount of loss; or b. The sum of the Limits of Insuranceapplica- ble to those coverages. 8. Loss Sustained During Prior Insurance a. If you, or any predecessor in interest, sus- tained loss during the period of any prior insurance that you or any predecessor in interest could have recovered under that in- surance except that the time within which to discover loss had expired, we will pay for it under this insurance, provided: (1) This insurance became effective at the time of cancellation or termination of the prior insurance; and (2) The loss would have been covered by this insurance had it been in effect when the acts or events causing the loss were committed or occurred. b. The insurance under this Condition is part of, not in addition to, the Limits of Insurance applying to this insurance and is limited to the lesser of the amount recoverable under: (1) This insurance as of its effectivedate; or (2) The prior insurance had it remained in effect. 9. loss Covered Under This Insurance and Prior Insur- ance Issued by Us or Any Affiliate If any loss is covered: a. Partly by this insurance; and b. Partly by any prior cancelled or terminated 2 10. 11. insuraricdhat we or any affiliate had issued to you c i predecessor in interest; _ the most we will pay is the larger of the amount recoverable under this insurance or the prior insurance. Non-Cumulation of Limit of Insurance Regardlessof the numberof years this insurance remains in force or the number of premiums paid, no Limit of Insurance cumulates from year to year or period to period. 6tber Insurance: This insurance does not apply to loss recoverable or recovered under other insur- ance or indemnity. However, if the limit of the other insurance or indemnity is insufficient to cover the entire amount of the loss, this insur- ance will apply to that part of the loss, other than that falling within any Deductible Amount, not recoverable or recovered under the other insur- ance or indemnity, but not for more than the Limit of Insurance. 12. Ownership of Property; Interests Covered: The property covered under this insurance is limited to property: a. That youown or hold; or b. For which you are legally liable. However, this insurance is for your benefit only. It provides no rights or benefits to any other person or organization. 13. Policy Period a. The Policy Period is shown in the Declara- tions. b. Subject to the Loss Sustained During Prior Insurance condition, we will pay only for loss that you sustain through acts com- mitted or events occurring during the Policy Period. 14. Records: You must keep records of all Covered Property so we can verify the amount of any loss. 15. Recoveries a. Any recoveries, less the cost of obtaining them, made after settlement of losscovered by this insurance will be distributed as fol- lows: (1) (2) (3) To you, until you are reimbursed for any loss that you sustain that exceeds the Limit of Insurance and the Deductible Amount, if any; Then to us, until we are reimbursed for the settlement made; Then to you, until you are reimbursed for that part of the loss equal to the Deductible Amount, if any. , b. Recoveries do not in e any recovery: (1) From insurance, suretyship, reinsur- ante, security or indemnity taken for our beefit; or (2) Of original “securities” after duplicates of them have been issued. 16. Territory: This insurance covers only acts com- mitted or events occurring within the United States of America, U.S. Virgin Islands, Puerto Rico, Canal Zone or Canada. 17. Transfer of Your Rights of Recovery Against Others to us You must transfer to us all your rights of recovery against any person or organization for any loss you sustained and for which we have paid or settled. You must also do everything necessary to secure those rights and do nothing after loss to impair them. 18. Valuation-Settlement a. Subject to the applicable Limit of Insurance provision we will pay for: (1) Loss of “money” for not more than its face value. We may, at our option, pay for loss of “money” issued by any coun- try other than the United States of America: (a) At face value in the “money” issued by that country; or (b) In the United States of America dol- lar equivalent determined by the rate of exchange on the day the loss was discovered. (2) Loss of “securities” for not more than their value at the close of business on the day the loss was discovered. We may, at our option: (a) Pay the value of such “securities” or replace them in kind, in which event you must assign to us all your rights, title and interest in and to those “securities”; (b) Pay the cost of any Lost Securities Bond required in connection with issuing duplicates of the “se- curities”. However, we will be liable only for the payment of so much of the cost of the bond as would be charged for a bond having a penalty not exceediag the lesser of the: i. Value of the “securities” at the close of business on the day the loss was discovered; or ii. Limit of Insurance. (3) Loss of, or loss from damage to, “prop- erty other than money and securities” or 3 C. - from damage to the “premises” for nor more than the: (a) Actual cash value of the property on the day the loss was discovered; fb) Cost of repairing the property or “premises”; or (c) Cost of replacing the property with property of like kind and quality. We may, at our option, pay the actual cash value of the property or repair or replace it. If we cannot agree with you upon the actual cash value or the cost of repajr or replacement, the value or cost will be determined by arbitration. b. We may, at our option, pay for loss of, or loss from damage to, property other than “money”: (1) (2) In the “money” of the country in which the loss occurred; or In the United States of America dollar equivalent of the “money” of the coun- try in which the loss occurred deter- mined by the rate of exchange on the day the loss was discovered. c. Any property that we pay for or replace be-. comes our property. GENERAL DEFINITIONS 1. “Employee” means: a. Any natural person: (1) While in your service (and for 39 days after termination of service); and (2) Whom you compensate directly by sal- ary, wages or commissions; and (3) Whom you have the right to direct and control while performing services for you. b. Any natural person employed by an employ- ment contractor while that person is subject to your direction and control and performing services for you excluding, however, any such person while having care and custody of property outside the “premises”. But “employee” does not mean any: (1) (2) Agent, broker, factor, commission mer- chant, consignee, independent contractor or representative of the same general char- acter; or Director or trustee except while performing acts coming within the scope of the usual duties of an “employee”. 2. “Money” means: a. Currency, coins and bank notes in current use and having a face value; and b. Travelers checks, r+ster checks and money orders held for sale to the public. “Property Other Than Maney and Securities” means any tangible property other than “money” and “securities” that has intrinsic value but does not include any property listed in any Coverage Form as Property Not Covered. “Securities” means negotiable and non-negotia- ble instruments or contracts representing either “money” or other property and includes: a. Tokens, tickets, revenue and other stamps (whether represented by actual stamps or unused value in a meter) in current use; and b. Evidences of debt issued in connection with credit or charge cards, which cards are not issued by you; but does not include “money”. COMMERCIAL CRIME INSURANCE IMPORTANT CHANGES IN YOUR COVERAGE We are renewing or replacing your Commercial Crime insurance with a new policy in simplified language. The new policy will result in some coverage broadenings and reductions in certain areas. Following is a summary of the broadenings and reductions in the various Crime coverages subject to the simplification program. The commentary relative to each of the indicated Coverage Forms applies to your policy only to the extent that the coverage of one or more of the indicated Coverage Forms is afforded under your policy. NO COVERAGE IS PROVIDED BY THIS SUMMARY NOR CAN IT BE CONSTRUED TO REPLACE ANY PROVISIONS OFYOUR POLICY. YOU SHOULD READ YOUR POLICY AND REVIEW YOUR DECLARATIONS PAGE FOR COMPLETE INFORMATION ON THE COVERAGES YOU ARE PROVIDED. IF THERE IS ANY CONFLICT BETWEEN THE POLICY AND THIS SUMMARY, THE PROVISIONS OF THE POLICY SHALL PREVAIL. COMMON POLICY CONDITIONS I. II. Broadening of Coverage The time frames for notice of cancellation have been expanded to 30 days notice of cancellation (10 days for nonpayment of premium) whereas the current conditions give either 10 or 15 days notice of cancellation under all circumstances. Reduction of Coverage None. CRIME GENERAL PROVISIONS FORM 1. Broadening of Coverage a. The Consolidation-Merger provision is a new condition for certain coverages that expands coverage by providing automatic insurance for newly acquired employees and premises. b. The definition of “securities” has been expanded to include evidences of debt pertaining to credit or charge cards. II. Reduction of Coverage a. b. C. d. A Governmental Action exclusion is added to clarify that this exposure is not intended to be covered under a Crime policy. The Indirect Loss exclusion is a new exclusion for certain coverages to clarify that coverage is provided for direct losses only. The Legal Expenses exclusion is a new exclusion for certain coverages that excludes losses related to any legal action. In the Valuation-Settlement condition, the insured is no longer able, for certain cover- ages, to approve of any settlements by the company. THEFt, DISAPPEARANCE AND DESTRUCTION COVERAGE FORM I. Broadening of Coverage a. Reference to a locked safe or vault was added cc 130 (1-86) UNIFORM PRINTING AND SUPPLY, INC. b. to the Containers of Covered Property Coverage Extension to expand coverage. In the Section 2 Covered Property provision the references to “while being conveyed by a messenger” and “while within the living quarters in the home of any messenger” were replaced by “in the care and custody” to expand coverage. II. Reduction of Coverage a. b. C. d. In the Sections 1 & 2 Covered Property provisions, coverage for “other property” is now provided in separate coverage forms. The Acts of Employees, Directors, Trustees or Representatives exclusion now excludes losses due to safe burglary and robbery. The Fire exclusion was revised to clarify that no fire damage to the “premises” is covered. The Voluntary Parting of Title to or Possession of Property exclusion is contained in the current forms that provide theft coverage for property other than money and securities and is added to this coverage form. ROBBERY AND SAFE BURGLARY COVERAGE FORM I. Broadening of Coverage a. b. C. d. In the Premises, Safe and Vault Damage Coverage Extension coverage is expanded to include damage to a safe or vault. In the Section 2 Covered Property provision the reference “while being conveyed” is replaced by “in the care and custody” to expand coverage. The Conveyance of Property by Armored Motor Vehicle Company Coverage Extension is added to expand coverage. Manuscripts, books of account and records are now covered and a $1,000 special limit applies. 1 II. Reduction of Coverage a. A Property Not Covered provision is added to Sections 1 & 2 to clarify that motor vehicles and related property are not intended to be covered under a Crime policy. b. An Acts of Employees, Directors, Trustees or Representatives exclusion is added to clarify that acts of the above people are not intended to be covered. c. A fire exclusion is added to clarify that only fire damage to a safe or vault is covered. d. A Vandalism exclusion is added to clarify that coverage against vandalism is provided under. the Commercial Property forms and not under this form. e. A Special Limit of Insurance for Specified Property condition is added that limits coverage for certain items of extraordinary value to $1,000 for any one occurrence. PREMISES BURGLARY COVERAGE FORM 1. Broadening of Coverage a. b. C. d. e. f. g. Coverage is expanded to include all property other than money and securities, except for motor vehicle related property, for loss or damage inside the premises. In the Covered Causes of Loss provision, robbery coverage is expanded by deleting the reference “while the premises are not open for business”. The Changes in Conditions provision was made less restrictive by adding the phrase 1‘ . . . within your control . . . etc.” Manuscripts, books of account and records are now covered and a $1,000 special limit applies. Furs are no longer excluded by removal from a showcase or show window but a $1,000 special limit applies. In the Duties in the Event of Loss condition, the reference to the insured furnishing a complete inventory of all property not stolen or damaged, . . . etc. was deleted to expand coverage. The definition of “robbery” was expanded to include reference to “. . . an obviously unlawful act witnessed . . .I’. II. Reduction of Coverage a. Coverage is no longer provided as respects showcases or show windows located outside the premises but inside the building line. However, coverage can be provided by endorsement. b. A Property Not Covered provision is added to clarify tha: tor vehicles and related property are not intended to be covered under a Crime policy. c. A Special Limit of Insurance for Specified Property condition is added that limits coverage for certain items of extraordinary value to $1,000 for any one occurrence. COMPUTER FRAUD COVERAGE FORM I. Broadening of Coverage Manuscripts and records are now covered and a $1,000 special limit applies. II. Reduction of Coverage Drawings are now subject to a $1,000 special limit. EXTORTION COVERAGE FORM I. Broadening of Coverage None. II. Reduction of Coverage None. PREMISES THEFT AND ROBBERY OUTSIDE THE PREMISES COVERAGE FORM I. II. Broadening of Coverage None. Reduction of Coverage An Exchanges or Purchases exclusion is added that excludes coverage for losses resulting from the giving or surrendering of property in any exchange or purchase. LESSEES OF SAFE DEPOSIT BOXES COVERAGE FORM I. Broadening of Coverage a. In the Section 1 Covered Property provision, coverage is expanded to apply to securities. b. In the Section 1 Covered Causes of Loss provision, coverage against theft, disappear- ance and destruction is now provided to expand coverage. II. Reduction of Coverage a. The Fire exclusion was revised to clarify that no fire damage to the “premises” is covered. b. A Transfer or Surrender of Property exclusion is added to clarify that losses that result from unauthorized instructions or from a threat to do bodily harm or to damage property were never intended to be covered under this coverage form. c. The Voluntary Parting of Title to or Possession of Property exclusion is contained in the current forms that provide theft coverage for 2 property other thar ney and securities and is added to this coverage form. SECURITIES DEPOSITED WITH OTHERS COVERAGE FORM 1. Broadening of Coverage a. The definition of “custodian” no longer requires that a custodian be a public official. b. The definition of “premises” no longer requires that the custodian or depository _ premises be in the banking or safe deposit business. II. Reduction of Coverage a. A Transfer or Surrender of Property exclusion is added to clarify that losses that result from unauthorized instructions or from a threat to do bodily harm or to damage property were never intended to be covered under this coverage form. b. The Voluntary Parting of Title to or Possession of Property exclusion is contained in the current forms that provide theft coverage for property other than money and securities and is added to this coverage form. LIABILITY FOR GUESTS PROPERN- SAFE DEPOSIT BOX COVERAGE FORM I. Broadening of Coverage a. b. C. Coverage is expanded by including loss of earnings. - Coverage is expanded by including pre- judgment interest on the amount of the company’s payment for damages. Coverage is expanded by including loss of wages or salary up to $100 per day. II. Reduction of Coverage a. A Fire exclusion is added to clarity that coverage for fire is provided under the Commercial Property forms and not under this form. b. A Governmental Action exclusion is added to clarify that this exposure is not intended to be covered under a Crime policy. c. An Inherent Vice exclusion is added to clarify that coverage for such Inherent Vice is not intended to be covered under this form. d. A Release of Others From Liability exclusion is added to clarify that coverage for the release of others from liability is not intended to be covered under this form. e. In the Defense, investigation and Settlement provision, the reference to I’. . . settle any claim or suit as we deem expedient” replaces the reference to “but the company shall not, A withk the written consent of the insured, settle. . .I’. Also, a reference that the company’s right and duty to defend ends when the Limit of Insurance has been exhausted is added to clarify intent. LIABILITY FOR GUESTS’ PROPERTY- PREMISES COVERAGE FORM I. Broadening of Coverage a. b. C. d. e. Coverage is expanded by including loss of earnings. Coverage is expanded by including pre- judgment interest on the amount of the company’s payment for damages. Coverage is expanded by including loss of wages or salary up to $100 per day. In the Limit of Insurance provision, payment made by the company no longer reduces the policy period limit of insurance. In the Duties in the Event of Loss, Claim or Suit condition, notice of loss, destruction or damage no longer needs to be in writing. A specific requirement is added that the insured authorize the company to obtain records or other information. II. Reduction of Coverage a. b. C. d. e. An Acts Committed By You Or Your Partners exclusion is added to clarify that acts of the above people are not intended to be covered. A Fire exclusion is added to clarify that cov- erage for fire is provided under the Commer- cial Property forms and not under this form. A Governmental Action exclusion is added to clarify that this exposure is not intended to be covered under a Crime policy. Inherent Vice, Nuclear and War and Similar Actions exclusions are added to clarify that these exposures are not intended to be covered. In the Defense, Investigation and Settlement provision, a reference that the company’s right and duty to defend ends when the Limit of Insurance has been exhausted is added to clarify intent. SAFE DEPOSITORY GENERAL PROVISIONS FORM I. Broadening of Coverage None. II. Reduction of Coverage a. An Acts Committed by You or Your Partners exclusion is added as respects the Safe Depository Liability Coverage Form to clarify that coverage for such acts is not intended to be covered. 3 . b. A Governmental Action and clear exclusion are added to clarify that these exposures are not intended to be covered. c. A War and Similar Actions exclusion is added as respects the Safe Depository Liability Coverage Form to clarify that this exposure is not intended to be covered. SAFE DEPOSITORY UABILITY COVERAGE FORM 1. Broadening of Coverage a. Coverage is expanded by including loss of earnings. b. Coverage is expanded by including prejudg- ment interest on the amount of the company’s payment for damages. c. Coverage is expanded by including loss of wages or salary up to $100 per day. II. Reduction of Coverage a. In the Defense, Investigation and Settlement provision, tht .ierence to “. . . settle any claim or suit as we deem expedient” replaces the reference to “but the company shall not, without the written consent of the insured, settle. . .I’. Also, a reference that the corn- pany’s right and duty to defend ends when the Limit of Insurance has been exhausted is added to clarify intent. b. Coverage is no longer provided for officers and employees. SAFE DEPOSITORY DIRECT LOSS COVERAGE FORM I. Broadening of Coverage None. II. Reduction of Coverage a. b. The Fire exclusion was revised to clarify that no fire damage to the “premises” is covered. An Indirect Loss exclusion is added to clarify that coverage is provided for direct losses only.