NATIONAL UNION FIRE INSURANCE COMPANY
OF PITTSBURG, PA.
RIDER NO. 3
INSURING AGREEMENT J
To be attached to and form part of
Bond No.6213964 in favor of Profunds
It is agreed that:
1. The attached bond is amended by adding an
additional insuring agreement as follows:
COMPUTER SYSTEMS
Loss resulting directly from a fraudulent
(1) entry of data into, or
(2) change of data or programs within
a Computer System; provided the fraudulent
entry or change causes
(a) Property to be transferred, paid or
delivered,
(b) an account of the Insured, or of its
customer, to be added, deleted, debited or
credited:
(c) an unauthorized account of a fictitious
account to be debited or credited;
(3) voice instructions or advices having been
transmitted to the Insured or its agent(s) by
telephone;
and provided further, the fraudulent entry or
change is made or caused by an individual acting
with the intent to:
(i) cause the Insured or its agent(s) to sustain
a loss, and
(ii) obtain financial benefit for that individual
or for other persons intended by that individual
to receive financial benefit,
(iii) and further provided such voice instruction
or advices:
(a) were made by a person who purported to
represent an individual authorized to make such
voice instruction or advices; and
(b) were electronically recorded by the Insured
or its agent(s).
(4) It shall be a condition to recovery under the
Computer Systems Rider that the Insured or its
agent(s)shall to the best of their ability
electronically record all voice instructions or
advices received over telephone. The Insured or
its agent(s) warrant that they shall make their
best efforts to maintain the electronic recording
system on a continuous basis. Nothing, however, in
this Rider shall bar the Insured from recovery where
no recording is available because of mechanical
failure of the device used in making such recording,
or because of failure of the media used to record
conversation from any cause, or error or omission of
any Employee(s) or agent (s) of the Insured.
SCHEDULE OF SYSTEMS
All computer systems utilized by the Insured
2. As used in this Rider, Computer System means:
(a) computers with related peripheral components,
including storage components, wherever located,
(b) systems and application software,
(c) terminal devices,
(d) related communication networks or customer
communication systems, and
(e) related Electronic Funds Transfer Systems,
by which data are electronically collected,
transmitted, processed, stored, and retrieved.
3. In addition to the exclusions in the attached bond,
the following exclusions are applicable to this Insuring
Agreement:
(a) loss resulting directly or indirectly from the theft
of confidential information, material or data; and
(b) loss resulting directly or indirectly from entries
or changes made by an individual authorized to have
access to a Computer System who acts in good faith on
instructions, unless such instructions are given to that
individual by a software contractor (or by a partner,
officer or employee thereof) authorized by the Insured
to design, develop, prepare, supply service, write or
implement programs for the Insured's Computer System.
4. The following portions of the attached bond are not
applicable to this Rider:
(a) the initial paragraph of the bond preceding the
Insuring Agreements which reads "...at any time but
discovered during the Bond Period."
(b) Section 9-NON-REDUCTION AND NON-ACCUMULATION OF
LIABILITY AND TOTAL LIABILITY
(c) Section 10-LIMIT OF LIABILITY
The Coverage afforded by this rider applies only to loss
discovered by the Insured during the period this Rider is
in force.
All loss or series of losses involving the fraudulent
activity of one individual, or involving fraudulent activity
in which one individual is implicated, whether or not that
individual is specifically identified, shall be treated as
one loss. A Series of losses involving unidentified
individuals but arising from the same method of operation
may be deemed by the Underwriter to involve the same
individual and in that event shall be treated as one loss
The Limit of Liability for the coverage provided by this
Rider shall be
Five Million six hundred thousand dollars ( $5,600,000) ,
it being understood however, that such liability shall be
part of and not in addition to the Limit of Liability
stated in Item 3 of the Declarations of the attached bond.
The Underwriter shall be liable hereunder for the amount
by which one loss shall be in excess of Ten 7housand
Dollars ( $10.000 ) (herein called the Deductible amount)
but not in excess of the Limit of Liability stated above.
If any loss is covered under this Insuring Agreement and
any other Insuring Agreement or Coverage, the maximum
amount payable for such loss shall not exceed the largest
amount available under any one Insuring Agreement or
Coverage. Coverage under this Rider shall terminate upon
termination or cancellation of the bond to which this Rider
is attached. Coverage under this rider may also be
terminated or cancelled without canceling the bond as an
entirety:
(a) 60 days after receipt by the Insured of written notice
from the Underwriter of its desire to terminate or cancel
coverage under this Rider, or
(b) immediately upon receipt by the Underwriter of a written
request from the Insured to terminate or cancel coverage
under this Rider.
The Underwriter shall refund to the Insured the unearned
premium for this coverage under this Rider. The refund shall
be computed at short rates if this Rider is terminated or
cancelled or reduced by notice from, or at the instance of,
the Insured.
11. Section 4-LOSS-NOTICE-PROOF-LEGAL PROCEEDING of the
Conditions and Limitations of this bond is amended by adding
the following sentence:
"Proof of Loss resulting from Voice Instructions or advices
covered under this bond
shall include Electronic Recording of such Voice Instructions
or advices."
12. Not withstanding the foregoing, however, coverage afforded
by this Rider is not designed to provide protection against
loss covered under a separate Electronic and Computer Crime
Policy by whatever title assigned or by whatever Underwriter
written.
Any loss which is covered under such separate Policy is
excluded from coverage under this bond; and the Insured agrees
to make claim for such loss under its separate Policy.
13. This rider shall become effective at 12:Ol a.m.
Standard time on 03/31/2007
By:
Authorized Representative
