Common use of Computer Theft and Electronic Transfer of Funds Clause in Contracts

Computer Theft and Electronic Transfer of Funds. We will pay for loss of money and securities resulting from a “fraudulent instruction” directing a financial institution to transfer, pay, or deliver funds from your account by means of an electronic transfer of funds (“ETF”) subject to the following: a. Prior to the loss, the covered entity certifies that the bank with which the covered entity deals has primary insurance coverage for such loss and informs us of the limits of such insurance. b. The bank has a password protected system whereby each entity accessing the system has its own password. c. The covered party maintains a list of employees authorized to make electronic transfers and describes the circumstances [limits] of their authority, establishes and follows a user password system with a separate password for each person authorized to make an ETF. The password (i) shall be known only to that user, and (ii) shall be changed at least annually. d. The computers used for ETF must have at all times updated virus protection and firewalls to protect them for outside access. e. The computers used for ETF shall be turned off and depowered each night. The amount we pay is limited to that portion of loss exceeding the deductible shown in the Information Pages. We will then pay in excess of the deductible up to the limit shown for this coverage in the Information Pages.

Computer Theft and Electronic Transfer of Funds. We will pay for loss of money and securities resulting from a “fraudulent instruction” directing a financial institution to transfer, pay, or deliver funds from your account by means of an electronic transfer of funds (“ETF”) subject to the following: a. Prior to the loss, the covered entity certifies that the bank with which the covered entity deals has primary insurance coverage for such loss and informs us of the limits of such insurance.; b. The bank has a password protected system whereby each entity accessing the system has its own password.; c. The covered party maintains a list of employees authorized to make electronic transfers and describes the circumstances [limits] of their authority, establishes and follows a user password system with a separate password for each person authorized to make an ETF. The password (i) shall be known only to that user, and (ii) shall be changed at least annually. d. The computers used for ETF must have at all times updated virus protection and firewalls to protect them for outside access. e. The computers used for ETF shall be turned off and depowered each night. The amount we pay is limited to that portion of loss exceeding the deductible shown in the Information Pages. We will then pay in excess of the deductible up to the limit shown for this coverage in the Information Pages.