INVESTMENT COMPANY ASSET PROTECTION PROFESSIONAL LIABILITY
INSURANCE POLICY
JOINT INSUREDS AGREEMENT
THIS AGREEMENT is made as of December 31, 1995, by and among FBL Investment
Advisory Services, Inc., FBL Marketing Services, Inc., FBL Money Market Fund,
Inc., FBL Series Fund, Inc. and FBL 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. December 31st, through 12:01
a.m. the next succeeding December 31st) 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. FBL Investment Advisory 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 as of
the day and year first above written.
Attest: FBL INVESTMENT ADVISORY SERVICES, INC.
/s/ Xxxxxx X. Xxxxxx By: /s/ Xxxxxxx X. Warming
----------------------------------------- --------------------------------
Its Secretary, Xxxxxx X. Xxxxxx Xxxxxxx X. Warming
Attest: FBL MARKETING SERVICES, INC.
/s/ Xxxxxx X. Xxxxxx By: /s/ Xxxxxxx X. Xxxxxxx
----------------------------------------- --------------------------------
Its Secretary, Xxxxxx X. Xxxxxx Xxxxxxx X. Xxxxxxx
Attest: FBL MONEY MARKET FUND, INC.
/s/ Xxxxxx X. Xxxxxx By: /s/ Xxxxxx X. Xxxxxxxxxxx
----------------------------------------- --------------------------------
Its Assistant Secretary, Xxxxxx X. Xxxxxx Xxxxxx X. Xxxxxxxxxxx
Attest: FBL SERIES FUND, INC.
/s/ Xxxxxx X. Xxxxxx By: /s/ Xxxxxx X. Xxxxxxxxxxx
----------------------------------------- --------------------------------
Its Assistant Secretary, Xxxxxx X. Xxxxxx Xxxxxx X. Xxxxxxxxxxx
Attest: FBL VARIABLE INSURANCE SERIES FUND
/S/ Xxxxxx X. Xxxxxx By: /S/ Xxxxxx X. Xxxxxxxxxxx
----------------------------------------- --------------------------------
Its Assistant Secretary, Xxxxxx X. Xxxxxx Xxxxxx X. Xxxxxxxxxxx
February 15, 1998 EXHIBIT A
to the
DO&EO Joint Insureds Agreement dated December 31, 1995
For Policy Period, 12:01 a.m., February 15, 1998, through 12:01 a.m., February
15, 2001.
Party Premium %
----- ------- ------
FBL Investment Advisory Services, Inc. 21,182.00 50.62
FBL Marketing Services, Inc. 7063.00 16.88
FBL Variable Insurance Series Fund 5043.00 12.05
FBL Series Fund, Inc. 7674.00 18.34
FBL Money Market Fund, Inc. 884.00 2.11
--------- ------
41,846.00 100.00
Attest: FBL INVESTMENT ADVISORY SERVICES, INC.
/s/ Xxxxxx X. Xxxxxx By: /s/ Xxxxxxx X. Xxxx
--------------------------------- --------------------------------
Secretary: Xxxxxx X. Xxxxxx Xxxxxxx X. Xxxx
Attest: FBL MARKETING SERVICES, INC.
/s/ Xxxxxx X. Xxxxxx By: /s/ Xxxx X. Xxxxxx
--------------------------------- --------------------------------
Secretary: Xxxxxx X. Xxxxxx Xxxx X. Xxxxxx
Attest: FBL VARIABLE INSURANCE FUND
/s/ Xxxxxxx X. Xxxxxx By: /s/ Xxxxxx X. Xxxxxxxxxxx
--------------------------------- --------------------------------
Secretary: Xxxxxxx X. Xxxxxx Xxxxxx X. Xxxxxxxxxxx
Attest: FBL SERIES FUND, INC.
/s/ Xxxxxxx X. Xxxxxx By: /s/ Xxxxxx X. Xxxxxxxxxxx
--------------------------------- --------------------------------
Secretary: Xxxxxxx X. Xxxxxx Xxxxxx X. Xxxxxxxxxxx
Attest: FBL MONEY MARKET FUND, INC.
/s/ Xxxxxxx X. Xxxxxx By: /s/ Xxxxxx X. Xxxxxxxxxxx
--------------------------------- --------------------------------
Secretary: Xxxxxxx X. Xxxxxx Xxxxxx X. Xxxxxxxxxxx
