Joint Fidelity Bond Agreement
This Agreement is made as of the
24th day
of June, 2009, by and among JNL Series Trust, JNL Variable Fund LLC, and JNL
Investors Series Trust (collectively referred to as the “Funds,” with each
referred to individually as a “Fund”), each of which are named insureds on a
certain fidelity bond policy covering certain acts relating to the Funds (“Joint
Fidelity Bond”).
Whereas, each Fund has registered
under the Investment Company Act of 1940, as amended (“1940 Act”) as an open-end
management investment company; and
Whereas, Rule 17g-1(f) under the 1940
Act requires that a registered management investment company named as an insured
on a joint fidelity bond enter into an agreement with the other named insureds;
and
Whereas, the series of each Fund will
benefit from their respective participation in the Joint Fidelity Bond in
compliance with this Rule.
Now
Therefore, it is
agreed as follows:
1. In the event any recovery
under the Joint Fidelity Bond is received as a result of a loss sustained by any
series of a Fund, (which includes the trustees, directors, officers and other
employees of an insured), then such series sustaining such loss shall receive an
equitable and proportionate share of the recovery, said proportion to be
established by the ratio that its claim bears to the total amount claimed by all
participants, but at least equal to the amount which each such series would have
received had the relevant series purchased and maintained a single insured bond
with the minimum coverage required by Rule 17g-1(d)(1) under the 1940
Act.
If for any particular policy year,
after the initial allocation there are remaining proceeds of the bond and there
are then named insureds whose losses have not been paid in full, the remainder
of the bond shall be further allocated to named insureds having excess losses in
proportion to their initial coverage, with such allocation repeated until all
such losses have been paid or coverage of the bond has been
exhausted.
If all
losses relating to a particular policy year are not paid at the same time, the
named insureds who claim losses for that policy year shall make such provisions
as they deem suitable to the particular circumstances (taking into account the
size of any payment received, the size, nature and expected result of any
remaining claims, and all other relevant factors) to permit a later reallocation
of amounts first paid.
If only
one named insured incurs a loss in a policy year, the proceeds of the bond for
that policy year are allocated to that insured.
2. The
bond premium shall be paid by Xxxxxxx National Asset Management, LLC, Investment
Adviser and Administrator to the Funds.
3. This
agreement may be modified or amended from time to time by written agreement of
all named insureds or by not less than sixty days written notice by one insured
to each other insured. This agreement shall terminate as to any
insured as of the date that insured ceases to be an assured under the bond;
provided that such termination shall not affect the rights and obligations that
have attached under this agreement to a terminating party until such termination
becomes effective.
4. Each
insured agrees to promptly give to the insurer all notices required of it under
the bond and to send a copy of each such notice to each other
insured.
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JNL
Series Trust
JNL
Variable Fund LLC
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By: /s/
Xxxxx X.
Xxxx
Xxxxx X. Xxxx
Vice President, Counsel, and
Secretary
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