Joint Insured. This bond does not indemnify or hold harmless any Insured for loss sustained by a proprietorship, partnership or corporation which is owned, controlled or operated by such Insured and not named as an Insured hereunder, except as may be provided on a limited basis within General Agreement B., but this paragraph does not apply to loss sustained by a nominee organized by an Insured hereunder other than a holding company. If two or more Insureds are covered under this bond, the first named Insured will act for all Insureds. Payment by the Company to the first named Insured of loss sustained by any Insured fully releases the Company on account of such loss. If the first named Insured ceases to be covered under this bond, the Insured next named will thereafter be considered the first named Insured. In the absence of an Insured being specifically next named, the Insured entity having the greatest consolidated assets of all remaining Insureds then becomes the first named Insured. Knowledge possessed or discovery made by any Insured constitutes knowledge or discovery by all Insureds for all purposes of this bond. The liability of the Company for loss or losses sustained by all Insureds will not exceed the amount for which the Company would have been liable had all such loss or losses been sustained by one Insured. If the bond covers loss sustained by two or more Employee Benefit Plans or sustained by any such plan in addition to loss sustained by an Insured other than such plan, it is the obligation of the Insured or the plan administrator of such plans under regulations published by the Secretary of Labor implementing Section 13 of the Welfare and Pension Plans Disclosure Act of 1958 to obtain (under one or more bonds issued by one or more insurers) an amount of coverage for each such plan at least equal to that which would be required if such plans were bonded separately. In compliance with the foregoing paragraph, payment by the Company in accordance with provisions of the bond will be held by the first named Insured, for the use and benefit of any Employee Benefit Plan sustaining loss so covered. To the extent that such payment is in excess of the amount of coverage required by regulations applicable to said plan sustaining such loss, such excess shall be held for the use and benefit of any other Employee Benefit Plan also covered in the event that such other plan discovers that it has sustained loss covered under this bond. If Money or other Property of two or more Employee Benefit Plans covered under this bond is commingled, recovery for loss of such Money or other Property through fraudulent or dishonest acts of Employees will be shared by each Employee Benefit Plan sustaining such loss, in the proportion that the limit of insurance required under the Employee Retirement Income Security Act of 1974 and any amendments thereto (ERISA) for each such Employee Benefit Plan bears to the total of such limits of insurance.
Appears in 1 contract
Joint Insured. SPECIMEN This bond does not indemnify or hold harmless any Insured for loss sustained by a proprietorship, partnership partnership, or corporation which that is owned, controlled controlled, or operated by such Insured and but is not named as an Insured hereunderInsured, except as may be provided on a limited basis within General Agreement B., but ; provided this paragraph does not apply to loss sustained by a nominee organized by an Insured hereunder other than a holding company. If two or more Insureds are covered under this bond, the first named Insured will act for all Insureds. Payment by the Company to the first named Insured of loss sustained by any Insured fully releases the Company on account of such loss. If the first named Insured ceases to be covered under this bond, the Insured next named will thereafter be considered the first named Insured. In the absence of an Insured being specifically next named, the Insured entity having the greatest consolidated assets of all remaining Insureds then becomes the first named Insured. Knowledge possessed or discovery made by any Insured constitutes knowledge or discovery by all Insureds for all purposes of this bond. The liability of the Company for loss or losses sustained by all Insureds will not exceed the amount for which the Company would have been liable had all such loss or losses been sustained by one Insured. If the this bond covers loss sustained by two or more Employee Benefit Plans or sustained by any such plan in addition to loss sustained by one Employee Benefit Plan and an Insured other than such plan, it is the obligation of the Insured or the plan administrator of such plans under regulations published by the Secretary of Labor implementing Section 13 of the Welfare and Pension Plans Disclosure Act of 1958 to obtain (under one or more bonds issued by one or more insurers) an amount of coverage for each such plan at least equal to that which would be required if such plans were bonded separately. In compliance with the foregoing paragraph, payment by the Company in accordance with provisions of the this bond will be held by the first named Insured, for the use and benefit of any Employee Benefit Plan sustaining loss so covered. To the extent that such payment is in excess of the amount of coverage required by regulations applicable to said plan sustaining such loss, such excess shall will be held for the use and benefit of any other Employee Benefit Plan also covered in the event that such other plan discovers that it has sustained loss covered under this bond. If Money or other Property of two or more Employee Benefit Plans covered under this bond is commingled, recovery for loss of such Money or other Property through fraudulent or dishonest acts of Employees will be shared by each Employee Benefit Plan sustaining such loss, in the proportion that the limit of insurance required under the Employee Retirement Income Security Act of 1974 and any amendments thereto (ERISA) for each such Employee Benefit Plan bears to the total of such limits of insurance.
Appears in 1 contract