FIDELITY BOND
JOINT INSUREDS AGREEMENT
THIS AGREEMENT is made this 10th day of August, 1988, by and between FBL MONEY
MARKET FUND, INC. ("Money Fund"), FBL SERIES FUND, INC. ("Series Fund") both
Maryland corporations; FBL Variable Insurance Series Fund ("Insurance Series
Fund") and FBL Institutional Series Fund ("Institutional Series Fund") both
Massachusetts business trusts (collectively the "Funds").
The Funds, all of which are managed by FBL Investment Advisory Services, Inc.,
have acquired a joint insured brokers blanket bond issued by the Employers
Mutual Casualty Company effective September 26, 1976 ("Bond"). The aggregate
amount of the Bond ("Bond Amount") is equal to the summation of the "Basic
Coverage" for each Fund, as indicated in Exhibit A attached hereto. The Funds
desire to provide herein for an allocation of the premium for the Bond and a
manner of allocating any proceeds received from the Bond.
The Funds, therefore, agree that:
1. ALLOCATION OF PREMIUM. Each Fund shall pay a portion of the annual
joint Bond premium as agreed to in writing no less often than annually
by the Funds and attached hereto as Exhibit A. These amounts are
determined on the basis of the relative costs to each Fund of a single
insured bond in the amount of that Fund's Basic Coverage as indicated
in Exhibit A.
2. LOSS TO ONE FUND. In the event of an insured loss to only one Fund,
the entire proceeds from the Bond for that loss shall be allocated to
the Fund incurring such loss.
3. LOSS TO MORE THAN ONE FUND.
(a) LOSS PERCENTAGES. For purposes of allocating the coverage of
the Bond, each Fund shall have a Loss Percentage as indicated in
Exhibit A, which percentages are based upon the percentage of the
total Bond coverage represented by the amount of each Fund's
Basic Coverage.
(b) INITIAL ALLOCATION. Each Fund involved in an insured loss which
involves another Fund shall receive a portion of the proceeds
from the Bond equal to the lesser of ( i ) the amount of that
Fund's loss or (ii) an amount equal to the product of the Bond
Amount multiplied by that Fund's Loss Percentage, which initial
allocation assures that each Fund shall receive the full amount
of its loss up to the amount of its Basic Coverage.
(c) SUBSEQUENT ALLOCATIONS. Any Bond proceeds unallocated after the
initial allocation shall be
allocated to the Funds for which the loss was not covered by the
initial allocation.
4. AGENT. Series Fund is hereby appointed as the agent for the Funds for
the purpose of making, adjusting, receiving and enforcing payment of
all claims under the bond and otherwise dealing with Employers Mutual
Casualty Company with respect to the Bond. Any expenses incurred by
Series Fund in its capacity as agent in connection with a claim shall
be shared by the Funds in proportion to the Bond proceeds received by
the Funds for the loss. All other expenses incurred by Series Fund in
its capacity as agent shall be shared by the Funds in the same portion
as their Loss Percentages.
5. MODIFICATION AND TERMINATION. This Agreement may be modified or
amended from time to time by mutual written agreement among the Funds.
It may be terminated with respect to any one Fund by not less than 75
days' written notice to the other Funds. It shall terminate as of the
date that any Fund ceases to be an insured under the Bond; provided
that such termination shall not affect such Fund's rights and
obligations hereunder with respect to any claims on behalf of such
Fund which are paid under the Bond by Employers Mutual Casualty
Company after the date such Fund ceases to be an insured under the
Bond.
6. FURTHER ASSURANCES. Each Fund agrees to perform such further acts and
execute such further documents as are necessary to effectuate the
purposes hereof.
IN WITNESS WHEREOF, the Funds have caused this Agreement to be executed as of
the day and year first above written.
Attest: FBL MONEY MARKET FUND, INC.
By:
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Its Assistant Secretary Its Vice President
Attest: FBL SERIES FUND, INC.
By:
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Its Assistant Secretary Its Vice President
Attest: FBL VARIABLE INSURANCE SERIES FUND
By:
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Its Assistant Secretary Its Vice President
Attest: FBL INSTITUTIONAL SERIES FUND
By:
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Its Assistant Secretary Its Vice President
EXHIBIT A
FIDELITY BOND
JOINT INSUREDS AGREEMENT
For Bond Period September 26, 1995 through September 26, 1996.
1. Basic Coverage
Fund Basic Coverage
---- --------------
Series Fund 1,350,000
Money Fund 250,000
Insurance Series Fund 975,000
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TOTAL 2,575,000
2. Allocation of Premium
Premium for Premium
Separate Allocation Bond
Fund Insured Bond Percentage Premium
---- ------------ ---------- -------
Series Fund 4,925.00 40.55% 3,999.61
Money Fund 2,786.00 22.94% 2,262.52
Ins. Series Fund 4,434.00 36.51% 3,600.87
-------- ------ --------
TOTAL 12,145.00 100.00% 9,863.00
3. Allocation of Bond Proceeds
Fund Loss Percentage
---- ---------------
Series Fund 52.43%
Money Fund 9.71%
Ins. Series Fund 37.86%
---------------
TOTAL 100.00%
Attest: FBL SERIES FUND, INC.
By:
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Its Assistant Secretary Its Vice President
Attest: FBL MONEY MARKET FUND, INC.
By:
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Its Assistant Secretary Its Vice President
Attest: FBL VARIABLE INSURANCE SERIES FUND
By:
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Its Assistant Secretary Its Vice President
