INVESTMENT COMPANY ASSET PROTECTION PROFESSIONAL LIABILITY INSURANCE POLICY JOINT INSUREDS AGREEMENT
Exhibit (h)(2)(v)
INVESTMENT COMPANY ASSET PROTECTION
PROFESSIONAL LIABILITY INSURANCE POLICY
JOINT INSUREDS AGREEMENT
PROFESSIONAL LIABILITY INSURANCE POLICY
JOINT INSUREDS AGREEMENT
THIS AGREEMENT, made December 31, 1995, amended as of May 23, 2002, February 15, 2007, and
February 14, 2008, and further amended as of February 12, 2009, by and among EquiTrust Investment
Management 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 (“Policy”) issued by one of the St. Xxxx Travelers Companies Inc. (“Travelers”).
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. Each Party’s portion of the annual Policy premium may or may not be proportionate to
such Party’s allocation of proceeds as set forth below.
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 (in all cases, after
application of any deductible), equal to the lesser of (i) the amount of that Party’s insured loss,
or (ii) an amount equal to the product of the limits multiplied by a fraction, the numerator of
which is one, and the denominator of which is: (A) two, for EquiTrust Investment Management
Services, Inc.; (B) five, for each of EquiTrust Series Fund, Inc. and EquiTrust Variable Insurance
Series Fund; and (C) ten, for EquiTrust Money Market Fund, Inc.
(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 insured
loss not covered by the prior allocation, or (ii) an amount equal to the unallocated proceeds
multiplied by the applicable fraction set forth in paragraph 4(a) above.
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. Non-Indemnifiable Loss. Notwithstanding any other provision of this Agreement, to
the extent Travelers becomes obligated to make any payment with respect to loss incurred by any
individual for which such individual is not entitled to indemnificaiton, such payment shall not be
considered “proceeds” subject to allocation under this Agreement, and Adviser shall direct
Travelers to make any such payment to or on behalf of any individuals entitled thereto, and not to
Adviser.
7. 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.
8. Further Assurances. Each Party agrees to perform such further acts and execute
such further documents as are necessary to effectuate the purposes hereof.
2
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/ Xxxxxx Xxxxxx
|
By: | /s/ Xxxxxxx X. Xxxxxx | ||
Its Secretary, Xxxxxx Xxxxxx
|
President | |||
| Attest: | EQUITRUST MONEY MARKET FUND, INC. | |||
/s/ Xxxxxx Xxxxxx
|
By: | /s/ Xxxxx X. Xxxx | ||
Its Secretary, Xxxxxx Xxxxxx
|
President | |||
| Attest: | EQUITRUST SERIES FUND, INC. | |||
/s/ Xxxxxx Xxxxxx
|
By: | /s/ Xxxxx X. Xxxx | ||
Its Secretary, Xxxxxx Xxxxxx
|
President | |||
| Attest: | EQUITRUST VARIABLE INSURANCE SERIES FUND | |||
/s/ Xxxxxx Xxxxxx
|
By: | /s/ Xxxxx X. Xxxx | ||
Its Secretary, Xxxxxx Xxxxxx
|
President | |||
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For the Policy Period, 12:01 a.m., February 15, 2009, through 12:01 a.m., February 15, 2010.
| Amount of | % of Allocation | |||||||||||
| Party | Premium | % of Premium | of Proceeds | |||||||||
EquiTrust Investment Management Services, Inc. |
$ | 50,943 | 56.60 | 50.00 | ||||||||
EquiTrust Variable Insurance Series Fund |
24,524 | 27.25 | 20.00 | |||||||||
EquiTrust Series Fund, Inc. |
13,243 | 14.72 | 20.00 | |||||||||
EquiTrust Money Market Fund, Inc. |
1,290 | 1.43 | 10.00 | |||||||||
| $ | 90,000 | 100.00 | 100.00 | |||||||||
| Attest: | EQUITRUST INVESTMENT MANAGEMENT SERVICES, INC. | |||||
/s/ Xxxxxx Xxxxxx
|
By: | /s/ Xxxxxxx X. Xxxxxx | ||||
| Attest: | EQUITRUST VARIABLE INSURANCE FUND | |||||
/s/ Xxxxxx Xxxxxx |
By: | /s/ Xxxxx X. Xxxx | ||||
| Attest: | EQUITRUST SERIES FUND, INC. | |||||
/s/ Xxxxxx Xxxxxx |
By: | /s/ Xxxxx X. Xxxx | ||||
| Attest: | EQUITRUST MONEY MARKET FUND, INC. | |||||
/s/ Xxxxxx Xxxxxx |
By: | /s/ Xxxxx X. Xxxx | ||||
