INVESTMENT COMPANY ASSET PROTECTION
PROFESSIONAL LIABILITY INSURANCE POLICY
JOINT INSUREDS AGREEMENT
THIS AGREEMENT, made December 31, 1995 and amended as of May 23, 2002,
by and among EquiTrust Investment Management Services, Inc., EquiTrust Marketing
Services, Inc., EquiTrust Money Market Fund, Inc., EquiTrust Series Fund, Inc.
and EquiTrust Variable Insurance Series Fund (each sometimes referred to
individually as the "Party" and all sometimes referred to collectively as the
"Parties").
The Parties have acquired a joint Investment Company Asset Protection
Professional Liability Insurance Policy issued by one of the Chubb Group of
Insurance Companies (the "Policy"). This Policy provides coverage exclusively
for the Parties.
The Parties want to provide for the allocation of the premium and a
manner of allocating any proceeds received under this coverage.
The Parties therefore agree that:
1. ALLOCATION OF PREMIUM. Each Party shall pay a portion of the
annual Policy premium as agreed to in writing no less often than annually by all
Parties and attached hereto as Exhibit A. These amounts have been determined by
the broker based upon each Party's proportionate share of the premiums that
would have been paid if such insurance coverage were purchased separately by the
Parties.
2. ALLOCATION OF PROCEEDS, ADDITIONAL COVERAGE.
(a) COMPUTATION OF PROCEEDS ON AN ANNUAL BASIS. In computing
any allocation of proceeds under 4 and 5 hereunder, all losses during the Policy
year (12:01 a.m. February 15th, through 12:01 a.m. the next succeeding February
15th) must be taken into consideration and any recovery received prior to the
end of such Policy year will be subject to reallocation in the event there are
later losses during such Policy year.
(b) POSSIBLE PURCHASE OF ADDITIONAL COVERAGE. Any party that
has been allocated proceeds during the Policy year may be requested to obtain
and pay for additional coverage under the Policy for the protection of all the
Parties against further losses during the Policy year. Such a request would be
made by the Agent (see 5 hereunder) in its sole discretion. Relevant factors
would include the amount of proceeds that was allocated to the Party, the amount
of proceeds that was allocated to all Parties, the time remaining in the Policy
year, and the amount of unallocated coverage remaining under the Policy.
3. LOSS TO ONE PARTY. In the event of an insured loss to only one
Party during a Policy year, the entire proceeds for that loss shall be allocated
to the Party incurring such loss.
4. LOSS TO MORE THAN ONE PARTY.
(a) INITIAL ALLOCATION. For purposes of allocating the
proceeds of coverage among the Parties, the following procedures shall be
followed: Each Party involved in an insured loss during a Policy year shall
receive a portion of the proceeds equal to the lesser of (i) the amount of that
Party's loss, or (ii) an amount equal to the product of the limits multiplied by
a fraction, the numerator of which is that Party's portion of the premium paid
for the Policy year in question, and the denominator of which is the sum of the
premiums paid for the Policy year in question by all the Parties involved in any
insured loss during such Policy year.
(b) SUBSEQUENT ALLOCATION. Any proceeds unallocated after the
initial allocation shall be allocated by repeating the following procedure until
all the proceeds are allocated. To each Party for which the loss was not covered
by the prior allocation, there shall be allocated a portion of the unallocated
proceeds equal to the lesser of (i) the amount of that Party's loss not covered
by the prior allocation, or (ii) an amount equal to the unallocated proceeds
multiplied by a fraction, the numerator of which is that Party's portion of the
premium paid for the Policy year in question, and the denominator of which is
the sum of the premium paid for the Policy year in question by all Parties for
which the loss was not covered by the prior allocation.
5. AGENT. EquiTrust Investment Management Services, Inc.
("Adviser") is hereby appointed as the agent for all the Parties for the purpose
of making, adjusting, receiving and enforcing payment of all claims and
otherwise dealing with the Policy. Any expenses incurred by Adviser in its
capacity as agent in connection with a claim shall be shared by the Parties in
proportion to the proceeds received by the Parties for the loss. All other
expenses incurred by Adviser in its capacity as agent shall be shared by the
Parties in the same proportion as their portion of the total premium paid.
6. MODIFICATION AND TERMINATION. This Agreement may be modified or
amended from time to time by mutual written agreement among all Parties. It may
be terminated with respect to any one Party by not less than 60 days' written
notice to the other Parties which are still Parties to the agreement. It shall
terminate with respect to any Party as of the date that Party ceases to be
insured under the Policy; provided that such termination shall not affect that
Party's rights and obligations hereunder with respect to any claims on behalf of
that Party which are paid under the Policy after the date the Party ceases to be
an insured under the Policy.
7. FURTHER ASSURANCES. Each Party agrees to perform such further
acts and execute such further documents as are necessary to effectuate the
purposes hereof.
IN WITNESS WHEREOF, the Parties have caused this Agreement to be
executed and amended as of the dates and year first above written.
Attest: EQUITRUST INVESTMENT
MANAGEMENT SERVICES, INC.
/s/ Xxx X. Xxxxxxx By: /s/ Xxxxxx X. Xxxxxx
---------------------------------- ----------------------------------
Its Secretary, Xxx X. Xxxxxxx Xxxxxx X. Xxxxxx
Attest: EQUITRUST MARKETING SERVICES,
INC.
/s/ Xxx X. Xxxxxxx By: /s/ Xxxx X. Xxxxxx
---------------------------------- ----------------------------------
Its Secretary, Xxx X. Xxxxxxx Xxxx X. Xxxxxx
Attest: EQUITRUST MONEY MARKET FUND,
INC.
/s/ Xxxxxxx X. Xxxxxx By: /s/ Xxxxx X. Xxxx
---------------------------------- ----------------------------------
Its Secretary, Xxxxxxx X. Xxxxxx Xxxxx X. Xxxx
Attest: EQUITRUST SERIES FUND,
INC.
/s/ Xxxxxxx X. Xxxxxx By: /s/ Xxxxx X. Xxxx
---------------------------------- ----------------------------------
Its Secretary, Xxxxxxx X. Xxxxxx Xxxxx X. Xxxx
Attest: EQUITRUST VARIABLE INSURANCE
SERIES FUND
/s/ Xxxxxxx X. Xxxxxx By: /s/ Xxxxx X. Xxxx
---------------------------------- ----------------------------------
Its Secretary, Xxxxxxx X. Xxxxxx Xxxxx X. Xxxx
EXHIBIT A
to the
D&O/E&O Joint Insureds Agreement dated May 23, 2002
For Policy Period, 12:01 a.m., February 15, 2002, through 12:01 a.m.,
February 15, 2003.
Party Premium %
----- ------- -
EquiTrust Investment Management Services, Inc. $ 8,867 25.00
EquiTrust Marketing Services, LLC 2,956 25.00
EquiTrust Variable Insurance Series Fund 2,329 20.00
EquiTrust Series Fund, Inc. 2,329 20.00
EquiTrust Money Market Fund, Inc. 1,165 10.00
-------- -------
$17,646 100.00
Attest: EQUITRUST INVESTMENT
MANAGEMENT SERVICES, INC.
/s/ Xxx X. Xxxxxxx By: /s/ Xxxxxx X. Xxxxxx
---------------------------------- ----------------------------------
Secretary: Xxx X. Xxxxxxx Xxxxxx X. Xxxxxx
Attest: EQUITRUST MARKETING SERVICES,
INC.
/s/ Xxx X. Xxxxxxx By: /s/ Xxxx X. Xxxxxx
---------------------------------- ----------------------------------
Secretary: Xxx X. Xxxxxxx Xxxx X. Xxxxxx
Attest: EQUITRUST MONEY MARKET FUND,
INC.
/s/ Xxxxxxx X. Xxxxxx By: /s/ Xxxxx X. Xxxx
---------------------------------- ----------------------------------
Secretary: Xxxxxxx X. Xxxxxx Xxxxx X. Xxxx
Attest: EQUITRUST SERIES FUND,
INC.
/s/ Xxxxxxx X. Xxxxxx By: /s/ Xxxxx X. Xxxx
---------------------------------- ----------------------------------
Secretary: Xxxxxxx X. Xxxxxx Xxxxx X. Xxxx
Attest: EQUITRUST VARIABLE INSURANCE
SERIES FUND
/s/ Xxxxxxx X. Xxxxxx By: /s/ Xxxxx X. Xxxx
---------------------------------- ----------------------------------
Secretary: Xxxxxxx X. Xxxxxx Xxxxx X. Xxxx
