Indicates the named insured “individual” has coverage for liability arising out of his/her acts as a “life insurance agent” selling only fixed life, accident & health, long term care and disability insurance products (including Medicare Advantage and Medicare Supplemental insurance).

Indicates the named insured “individual” has coverage for liability arising out of his/her acts as a "life insurance agent" selling only fixed life, accident & health, long term care and disability insurance products (including Medicare Advantage and Medicare Supplemental insurance) as well as fixed annuities, including indexed annuities.

Indicates the named insured “individual” has coverage for liability arising out of his/her acts: (1) as a "life insurance agent" selling fixed and variable life, accident & health, long terms care and disability insurance products (including Medicare Advantage and Medicare Supplemental insurance) as well as fixed and variable annuities (including indexed annuities); and (2) as a Series 6 "registered representative" selling variable life products, mutual funds and unit investment trusts.

Indicates the named insured “individual” has coverage for liability arising out of his/her acts: (1) as a "life insurance agent" selling fixed and variable life, accident, health, long term care, and disability insurance products (including Medicare Advantage and Medicare Supplement insurance), as well as fixed and variable annuities (including indexed annuities); and (2) as a Series 6 or Series 7 “registered representative” selling variable life products, mutual funds and unit investment trusts; and (3) as a Series 7 “registered representative” selling publicly registered and publicly traded stocks, bonds and REITS, “covered calls” and “protective puts” pursuant to the Covered Calls and Protective Puts Endorsement, and regular Exchange Traded Funds (ETF’s) and Exchange Traded Notes (ETN’s). There is no coverage for sale or servicing of leveraged ETF’s, ETN’s or mutual funds. Nor is there coverage for sale or servicing of inverse ETF’s, ETN’s or mutual funds except with respect to unleveraged inverse ETF’s, ETN’s and mutual funds which are used solely to hedge a portfolio as provided in the Inverse Securities Endorsement.

Indicates the named insured “individual” has coverage for liability arising out of his/her acts as a “property and casualty insurance agent” as per the Limited Personal Lines Property And Casualty Agent Coverage Endorsement selling the personal lines property and casualty insurance products covered by that endorsement.

Indicates the named insured “individual” has coverage for liability arising out of his/her acts as a "property and casualty insurance agent" as per the Limited Personal And Commercial Lines Property And Casualty Agent Coverage Endorsement selling the personal and commercial lines property and casualty insurance products covered by that endorsement.

Indicates the named insured “individual”, who is an employee of a “registered investment adviser” insured under coverage options 4G or 4H has coverage for liability arising out of his/her acts as “registered investment adviser”, “financial planner” and/or as an “associated person” providing non-discretionary ”investment management services” pursuant to an ”investment management contract” with a “registered investment adviser” covering investments in mutual funds, stocks, bonds and other “securities” not otherwise excluded from coverage under this policy as well as “covered calls” and “protective puts” pursuant to the Covered Calls and Protective Puts Endorsement and regular Exchange Traded Funds (ETF’s) and Exchange Traded Notes (ETN’s) and sub accounts of variable products; also includes coverage for liability arising out of the use of sub-advisors who provide “investment management services” to the “clients” of the named insured “registered investment adviser” pursuant to a “discretionary account agreement” covering investments in mutual funds, stocks, bonds and other “securities” not otherwise excluded from coverage under this policy as well as “covered calls” and “protective puts” pursuant to the Covered Calls and Protective Puts Endorsement and regular Exchange Traded Funds (ETF’s) and Exchange Traded Notes (ETN’s) and sub accounts of variable products. There is no coverage for sale or servicing of leveraged ETF’s, ETN’s or mutual funds. Nor is there coverage for sale or servicing of inverse ETF’s, ETN’s or mutual funds except with respect to unleveraged inverse ETF’s, ETN’s and mutual funds which are used solely to hedge a portfolio as provided in the Inverse Securities Endorsement.

Indicates the named insured “individual”, who is an employee of a “registered investment adviser” firm has coverage for its liability arising out of its acts as a “registered investment adviser” insured under coverage options 4G or 4H has coverage for liability arising out of his/her acts as “registered investment adviser”, “financial planner” and/or as an “associated person” providing both non-discretionary ”investment management services” pursuant to an ”investment management contract” and discretionary “investment management services” pursuant to a “discretionary account agreement” covering investments in mutual funds, stocks, bonds and other “securities” not otherwise excluded from coverage under this policy as well as “covered calls” and “protective puts” pursuant to the Covered Calls and Protective Puts Endorsement and regular Exchange Traded Funds (ETF’s) and Exchange Traded Notes (ETN’s) and sub accounts of variable products; also includes coverage for liability arising out of the use of sub-advisors who provide “investment management services” to the “clients” of the named insured “registered investment adviser” pursuant to a “discretionary account agreement” covering investments in mutual funds, stocks, bonds and other “securities” not otherwise excluded from coverage under this policy as well as “covered calls” and “protective puts” pursuant to the Covered Calls and Protective Puts Endorsement and regular Exchange Traded Funds (ETF’s) and Exchange Traded Notes (ETN’s) and sub accounts of variable products. There is no coverage for sale or servicing of leveraged ETF’s, ETN’s or mutual funds. Nor is there coverage for sale or servicing of inverse ETF’s, ETN’s or mutual funds except with respect to unleveraged inverse ETF’s, ETN’s and mutual funds which are used solely to hedge a portfolio as provided in the Inverse Securities Endorsement.

"Affiliate" of a specified “individual” or “entity” means an “individual” or “entity” that directly, or indirectly though one or more intermediaries, controls or is controlled by, or is under common control with, the specified “individual” or “entity”; it includes, without limitation, any “entity” of which an insured is an owner, officer, director, shareholder, partner, or member.

“Client” means an “individual” or “entity” which is a member of the general public and which, as the direct or ultimate consumer, uses the “financial services” of a named insured “entity” or “representative”. It does not include, without limitation, any “individual” or “entity” who/which buys with the intent of selling to others or sells with the intent that the buyer sell to others or which provides services as part of a chain of services to the ultimate consumer.

"Damages" means a monetary judgment, award or settlement. "Damages" do not include: civil or criminal fines, sanctions or penalties imposed on any insured, whether imposed pursuant to statute or otherwise; punitive or exemplary damages, including double or treble damages or any damages in excess of actual damages; judgments or awards arising from acts or omissions deemed uninsurable by the law under which this policy shall be construed; or fees, commissions or other compensation for any “financial services” rendered or required to be rendered by an insured or by a “representative” or that portion of any settlement, judgment or award in an amount equal to such fees, commissions or other compensation. However, “damages” shall include taxes, fines and penalties incurred by a “client” of a named insured or “representative” solely as a result of covered “wrongful acts” by a named insured or by a named “representative” and included in such “client’s” “written claim” against the insured.

Day trading, defined as trading wherein an “individual” is in and out of stock positions during a single day and closes out all positions in that stock at end of the day.

“Discretionary account agreement” means an agreement, actual or implied, under the terms of which an “individual” or “entity” has “investment discretion” in buying or selling or otherwise handling the “securities” or other investments of a third party; it does include, without limitation, a power of attorney, but it does not include: (1) a “Limited Mutual Fund Market Timing/Asset Allocation Agreement;” or (2) any other “investment management contract” under the terms of which an insured “registered investment adviser” is given, or exclusively exercises, “investment discretion” only with respect to buying, selling or otherwise handling mutual fund investments and/or the investments in variable life or variable annuity sub accounts, which investments are otherwise covered under the terms of this policy, and where said insured does not retain custody or otherwise have access to any “client” funds other than for the limited purpose of paying fees earned pursuant to the explicit terms of that agreement.

"Financial planner" means anyone who is in the business of providing "financial planning services" to others.

"Financial planning services" means the provision of financial or investment advice to “individuals” or families or their owned business entities based upon an analysis of their individual needs, financial circumstances and objectives. Generally, it includes preparing a financial plan, comprehensive or modular, which could include: personal financial statements; and advice relating to personal risk management, insurance, savings and investments, estate planning, retirement planning and taxes.

“Financial services” means the provision of: "financial planning services" by a financial_planner “financial planner”; “investment management services” by a “registered investment adviser” or an "associated person" of a "registered investment adviser"; the purchase or sale of “securities” or the provision of “investment advice” by a “registered representative”; and the proposed sale or sale of products authorized to be sold by a properly licensed "life insurance agent" , including, without limitation, life, health, disability and accident insurance products and annuities; provided, ”financial services” does not include any advice with respect to or the sale of viatical products.

“Financial services professional” means any “individual” who is a “financial planner”, “registered investment adviser”, "associated person“, "life insurance agent" and/or “registered representative”.

"Interrelated wrongful acts" means "wrongful acts" which are connected by a common fact, circumstance, situation, event, transaction or series of facts, circumstances, situations, events or transactions. For example, if an insured recommends or sells an unsuitable investment to a “client”, any subsequent dealings with that “client” with respect to that investment would be part of a series of "interrelated wrongful acts", as would the claims against an insured under a class action “suit”.

"Investment advice" means advice with respect to "securities" provided by a "registered representative" which is solely incidental to his/her conduct as a "registered representative" and for which he/she receives no special compensation, all pursuant to the provisions of the Investment Advisors Act of 1940, as amended.

"Investment discretion" means the making of one or more investment decisions (buy, sell or otherwise handle) by an "individual” or "entity" with respect to the assets, “securities" or other investments belonging to a third party without that third party's prior approval of each such decision.

“Investment management contract” means a written contract between a “registered investment adviser” and his/her/its “client”, contained in a single document or a series of related documents, setting forth the “registered investment adviser’s” duties and responsibilities with respect to the investment of the “client’s” money; it includes, without limitation, a “Limited Mutual Fund Market Timing / Asset Allocation Agreement”, but it does not include a “discretionary account agreement”.

“Investment management services” means advising with respect to and/or supervising the purchase or sale of “securities” or other investments for a “client” by a “registered investment adviser” or “associated person” pursuant to an “investment management contract”.

"Life insurance agent" means an “individual” or “entity” who/which is licensed, as required by law, to sell life, health, disability and accident insurance and annuity products and who / which is selling or providing advise with respect to such products which, if required to be authorized or approved for sale by a regulatory authority, have been so authorized or approved; however, it does not include, without limitation, anyone while acting as a general agent or in any similar capacity for a life insurance company if he/she has or supervises any sub agents.

"Limited Mutual Fund Market Timing / Asset Allocation Agreement" means an “investment management contract” (1) under the terms of which a “registered investment adviser” is given authority to shift the assets of his/her/its “clients” between various mutual funds and (2) where the "registered investment adviser" does not retain custody or otherwise have access to any “client” funds other than for the limited purpose of paying fees earned pursuant to the explicit terms of that agreement.

"Private securities transaction" means the selling by a “registered representative” of “securities" or other investment products which are not on the approved product list of, or which are not otherwise authorized or approved for sale by, the "registered representative's" "broker”-“dealer".

"Registered investment adviser" has the meaning assigned to that term by the Investment Advisers Act of 1940, as amended, or applicable state securities laws or regulations.

"Registered representative" means an “individual” who: (1) is registered with the National Association of Securities Dealers, Inc. as a "registered representative" of a "broker"-"dealer" pursuant to the provisions of the Securities Exchange Act of 1934; and (2) is in the business of buying and selling "securities" for the account of others. It does not include any “individual” while acting in the capacity of a principal of a "broker" or "dealer", including, without limitation, a General Securities Principal and Limited Principal - General Securities Sales Supervisor.

"Retention" means the sum of money that the insured agrees to maintain as self-insurance with respect to all "Written Claim" arising out of each "wrongful act" otherwise covered by this policy. The applicable each “wrongful act” “retention” applies on a first dollar basis and up to its stated amount, to all sums incurred in the investigation, settlement and/or defense of all "Written Claim" arising out of a "wrongful act". The Each “Wrongful Act” Aggregate Limit of Liability of this policy applies in excess of the "retention" which must be exhausted by the payment of indemnity and/or "defense costs" before we have any duty to pay indemnity or "defense costs". The amount of the applicable “retention" is specified as the Each “Wrongful Act” “Retention” in the Declarations or an endorsement.

"Securities" has the meaning assigned to that term by the Securities Exchange Act of 1934, as amended, or any applicable state statute, and any rules or regulations issued pursuant thereto.

"Suit" means a civil legal proceeding, including arbitration, brought against the insured seeking monetary "Damages". It does not include: criminal legal proceedings; legal proceedings, or that part of legal proceeding, seeking equitable relief (including, without limitation, injunctions or specific performance); or legal proceedings brought by a governmental or regulatory entity including, without limitation, those seeking fines, penalties, taxes or suspension or revocation of license, registration, membership or other operating authority.

"Wrongful act" means any negligent breach of duty, error, misstatement, misrepresentation, omission, "publication injury", or other negligent act done or attempted by an insured, or by any “individual” for whose acts the insured is legally responsible, in conjunction with the provision of covered “financial services“, as set forth in the Limitation of Coverage Endorsement, for the “client” of a named insured or “representative”. Any such "wrongful act", together with any related "wrongful acts" or series of continuous, repeated or "interrelated wrongful acts", shall be considered one "wrongful act" for purposes of the application of our Limits of Liability and the applicable "retention”. A "wrongful act" which is continuing in nature shall be deemed, for all purposes of this policy, to occur only on the date on which such "wrongful act" commences and not on any subsequent date. A series of continuous, repeated or "interrelated wrongful acts" shall be deemed to have occurred on the date on which the earliest of such "wrongful acts" commences. If a continuing "wrongful act" or a series of repeated or "interrelated wrongful acts" is committed by an insured, or by any “individual(s)” for whose acts such insured in legally responsible, prior to such insured’s applicable "retroactive date", there shall be no coverage under this policy for any insured for any of those "wrongful acts" even if some of those acts occur during the “policy period”.

If a named insured is an “entity”, each of that “entity’s” present, former or future employees who is not a “financial services professional" but only while acting within the course and scope of his/her duties as an employee of the said insured in connection with the provision of covered "financial services" by a named insured or a “representative” named on this policy.

Yes, if Traded. Non-traded are excluded. (See Diversification Endorsement Limitations)

Yes, if traded. Non-traded are excluded. (See Diversification Endorsement Limitations)

Yes, if traded. Non-traded are excluded. (See Diversification Endorsement Limitations)

No Coverage - Excluded

No Coverage - Excluded

No Coverage - Excluded

$15,000,000

$1,000,000 / $1,000,000

$1,000,000 / $2,000,000

$1,000,000 / $3,000,000

$2,000,000 / $2,000,000

$2,000,000 / $3,000,000

Insureds may choose multiple options with differing limits. The highest limit of the various coverages chosen will be the total limit for that insured. Limits for the other coverages chosen will be sub-limits of the highest limit. See Rate Calculator for Limits of Liability. New or Part Time Insureds have fewer limit options.

In order to comply with New York Circular No. 6 for insureds located in New York, such insured’s aggregate limit of liability will be reinstated should the policy aggregate be exhausted, less any amount already used by that agent.

Date of first continuous E&O insurance covering wrongful act leading to claim, with proof at time of claim. Except for Privacy and Identity Protection, Disciplinary & Subpoena, Inverse Securities, and Incident Report Endorsements, which are the Named Insured's first date of continuous coverage under the Defender Max Program.

The retentions for wrongful acts only involving fixed life, accident & health, disability, long term care products and annuities is $1,000. If the wrongful act also involves variable products, mutual funds or other securities the retention is $5,000. If the wrongful act involves personal lines property & casualty insurance, the retention is $5,000. If the wrongful act involves commercial lines insurance, the retention is $10,000. If the wrongful act involves financial planning or investment advisory services the retention varies by the limit and assets under management. See the Rate Calculator.

Each of these retentions will be reduced by 20% of the original retention (from the time such coverage is purchased) for each year that the insured is continuously insured in the program without a claim, until there is no retention.

Inverse Securities - $15,000 Retention

Trade Errors - $25,000 Retention

Privacy and Identity Protection - $2,500 Retention

Disciplinary & Subpoena Coverage - $2,500 Retention

Anyone providing "financial planning services".

As defined by Investment Advisers Act of 1940 as amended or applicable regulations.

Same meaning as "affiliated person" or "person associated with an investment advisor" as defined by Investment Advisers Act of 1940 as amended or applicable regulations.

Individual or entity, properly licensed to sell life, health, disability and accident insurance and annuity products. Does NOT include acting as a GA if supervising subagents (per the coverage option elected).

Individual or entity, properly licensed as a property and casualty insurance agent, broker or solicitor, with respect to the sale or servicing of covered personal and/or commercial lines insurance products (per the coverage option elected).

Individual registered with FINRA, in the business of buying and selling "securities" for the account of others. Includes principal of the First Named Insured, including as a General Securities Principal and Limited Principal - General Securities Sales Supervisor.

Named Insured Certificate Holder The participating insureds will be listed with their coverage inception date, coverages and limits chosen. Each Certificate Period will be 12 months. Participating life and property/casualty insurance agents, registered representatives, and associated persons of registered investment advisors will be insured as life or property/casualty insurance agents, registered representatives, or associated persons of registered investment advisors or any combination thereof and will be made members of the InterWeb Purchasing Group. Multiple limit and combinable coverage options are offered as outlined on the Cost and Options Tables.

First Named Insured Financial Services Professional who is a Named Insured Named Insured Entity who is a partnership, association, corp or LLC, their present, former and future partners, members, officers and directors - only for vicarious liability as respects covered services by insured Named Insureds Named Insured Entity's present, former or future employees/staff in connection with covered services by a named insured or "rep" Named Insured Company Endorsement Firms owned by, controlled by, or employing an insured ("employing" includes an Independent Contractor who works exclusively through the firm) will be insured for their vicarious liability arising out of an insured’s wrongful acts.

Spouse of Named Insured for vicarious liability Insureds executor, administrator, guardian or other legal rep in the event of death, incompetency or bankruptcy where the insured would otherwise be covered.

Financial or investment advice to "individuals" or families or their owned businesses based upon analysis of needs and objectives. Includes personal financial statements, advice relating to personal risk management, insurance, savings and investments, estate planning, retirement planning and taxes.

Advising and/or supervising purchase or sale of securities or other investments for a client by a RIA or associated person pursuant to an "investment management contract."

Asset Allocation with Limited Discretion

Asset Allocation with Broad Discretion

Investment Discretion

Acts as a property and casualty insurance agent, broker or solicitor with respect to the sale and servicing of personal lines insurance products with respect to the sale or servicing of homeowners, automobile, watercraft, recreational vehicle, motorcycle, personal umbrella, pet, and renters insurance only. (Exclusions Apply- See Limited Personal Lines Property and Casualty Agent Coverage Endorsement)

Acts as a property and casualty insurance agent, broker or solicitor with respect to the sale and servicing of personal and commercial lines insurance products with respect to the sale or servicing of homeowners, automobile, watercraft, recreational vehicle, motorcycle, personal umbrella, pet, and renters insurance only; and workers compensation and employers' liability, general liability, products liability, commercial multi-peril, business owner's policy, commercial automobile, commercial property. (Exclusions Apply- See Limited Personal and Commercial Lines Property and Casualty Agent Coverage Endorsement)

Named Insured's legal liability for indemnity and defense costs arising from a loss of "personal information" or data about a client arising from a negligent violation of a right of privacy or a privacy regulation in the performance of financial services covered by this policy. (See Privacy and Identity Protection Endorsement)

The Insurer shall, at the Insured’s request, retain counsel and pay such counsel’s reasonable and necessary fees and costs to represent the Named Insured in response to Disciplinary Proceeding arising from covered “financial services”; also to advise the Insured regarding the production of documents and/or represent the Insured during the preparation and giving of testimony, in response to a subpoena that is both served on the Insured and reported to the Insurer in writing during the Coverage Period. (See Disciplinary & Subpoena Coverage)

Unregistered Securities

Direct Participation Deals

Reg Ds

1031 Exchange/TIC

Auction Rate Securities

Day Trading

Junk Bonds

Life Settlements

Premium Financed Life Ins.

Promissory Notes

Proprietary Products

Structured Settlements

STOLI / BOLI

Viatical Settlements

Covers E&O, not claims that should be covered under other types of policies, such as D&O, EPLI, bonds, whether or not the insured has such other coverage (such as claims arising from (1) bodily injury (2) automobile, loss of use of property, etc. (3) theft, forgery, computer systems fraud or any other dishonest act intended to be covered by a fidelity bond, for example (4) employment related claims, such as discrimination (5) claims made by partners, stockholders or employees against the partners, directors & officers.

Acts committed, ratified or known by an insured, willful violations of laws/regs; profit to which the insured is not legally entitled; use of non-public information.

Liability assumed under contract except if the insured would have had the liability in the absence of the contract; failure of investments to perform according to any insured's warranty; disallowed tax deductions the client in the absence of insured negligence; claims arising out of disputes for the return of compensation.

Excludes activities as an accountant, actuary, IRS enrolled agent, lawyer, mortgage broker, P&C agent/broker; third party administrator, real estate agent or broker; tax preparer, life general agent with sub agents, managing general agent, underwriting manager, program manager, securities analyst, EXCEPT THIS EXCLUSION DOES NOT APPLY TO incidental advice on P&C insurance, personal risk management, investment management, estate planning or taxes.

Services as a trustee plan administrator or fiduciary under ERISA, PBA or COBRA. THIS EXCLUSION DOES NOT APPLY TO retirement plan design, investment advice and related securities or insurance purchases or sales in the normal scope of retirement or benefit planning services. Negotiated Enhancement to Underlined Item: Fiduciary under ERISA, including as 3(21) and 3(38)

Excludes claims (1) arising from the operation or ownership of any entity not a Named Insured on this policy (2) made by an entity owned/controlled/managed by an insured or as a D&O (3) in connection with a pension, profit sharing, mutual or investment fund, or benefit plan in which an insured is a sponsor, officer, trustee, etc.

Excludes claims related to the forming, syndicating operating or managing the assets of a GP, LP, REIT, joint venture, charitable enterprise, or the management or sale of any proprietary products.

Excludes actual or alleged insolvency, receivership, bankruptcy, liquidation, reorganization or financial inability to pay of any : insured, bank or banking firm, trust, title or escrow company; law firm, broker or dealer; clearing agency; insurance company or reinsurer; or insurance pool. Insurance Company Insolvency Endorsement FNX-66a (12-07): The insolvency exclusion will not apply if the life insurance company was rated B+ or better by AM Best at the time of sale.

Does not cover fines, punitives and other uninsurable amounts. This EXCLUSION DOES NOT APPLY TO civil fines, penalties or taxes which an insured is legally obligated to pay in connection with the provision of "financial services". Investment and Financial Product Approval By First Named Insured No coverage for "private securities transactions" which is any product not approved by the First Named Insured BD.

No coverage for claims from non-"clients" of the BD or RR. This would also include any (1) wholesaler between the Insured and the ultimate client/consumer, (2) a BD for their own account (3) investment bankers, mutual funds, limited partnerships, banks, savings and loan companies, other financial institutions, transfer agents, clearing agencies, the SPIC, custodians and (4) investment adviser entities, such as those providing asset allocation models or services.

Economic Forecasts / Products - Actual or alleged (1) economic forecast provided by an insured as a separate service, not as part of the "financial services" to a client (2) manufacture, leasing, distribution, preparation, design or sale of any non-"securities" or non-insurance product, such as computer hardware or software (3) infringement of trademark, patent or copyright.

Actual or alleged (1) arbitrage, short sales (except short against the box), derivatives, interest rate swaps, CMOs, structured notes, commodities, commodities futures, options, commodity pools or similar investments (2) viaticals (3) hedge funds (4) tangible personal property, precious metals, gemstones, collectibles or related securities, however THIS EXCLUSION DOES NOT APPLY TO gold or silver. Negotiated Enhancement to Underlined Item: Covered Calls and Protected Puts Endorsement Prior Acts / Unnamed Financial Services Professionals / Known Claims or Incidents / Troubled Securities Excludes interrelated claims, claims arising from acts prior to the retroactive date, prior and pending and known claims or potential claims, claims involving troubled securities, claims involving activities of unnamed professionals (i.e. non-insureds) unless such professional becomes an Insured under this policy within 30 days of hire.

Insured versus Insured, whether individuals or entities and past and present. Related individual means an "individual related by blood, or by marriage or civil union (whether such status is derived by reason of statutory law, common law or otherwise of any applicable jurisdiction in the world). With respect to any "entity insured", "related individual" includes a "related individual" of each officer, director, shareholder, partner, member, employee or IC of such "entity".

Excludes virtually all aspects of investment banking, merger & acquisition activity, business valuations and secondary offering of "securities" (public & private).

(1) loss or damage to records, data or machines (2) computer hardware/software malfunction or deficiency (3) data processing services for others.

Any claims alleging or in any way involving nuclear reaction, radiation or radioactive contamination, "pollutants" or "waste".

Excludes (1) securities traded exclusively outside of the US, its territories/possessions and Canada (2) Insureds activities as a specialist or market maker (3) any equity priced under $5 (unless authorized on NASDAQ National or Small Cap Market, or issued by an investment company) (4) coverage as a clearing agency, transfer agent or any entity through which an insured sold any investment or insurance product.

Excludes loss sustained by an Insured as a beneficiary or distributee of a trust or estate. No coverage in capacity as trustee or fiduciary (other than a fiduciary solely by reason of being a "financial services professional"), including, but not limited to" when he/she is also acting as a RIA or "associated person." Negotiated Enhancement to Underlined Item: Fiduciary under ERISA, including as 3(21) and 3(38)

No coverage for actual or alleged (1) financial inability to pay or insolvency of insurer/pool, Multi Employer Trust of Welfare Arrangement not fully funded by insurance (2) promise, indication, guarantee as to interest rates, future premium payments or market values (3) liability from activities as plan administrator or fiduciary under ERISA, PBA, COBA or any amendment or similar statute (4) failure of HMO/PPO to pay fees, insolvency or malpractice (5) insurance not approved for sale in the appropriate state (6) churning of life insurance policies (7) sale or advice as to viaticals.

a. Pending or prior claim, "suit" or litigation or alleging or derived from essentially the same facts b. Claim seeking non-pecuniary relief (e.g., specific performance or injunction). c. Claim arising from the financial inability to pay of any insurance company, self-insurance trust, group insurance trust, or other risk-assuming entity. Insurance Company Insolvency Endorsement The insolvency exclusion will not apply if the life insurance company was rated B+ or better, or the P&C insurance company was rated A- or better, by AM Best at the time of sale. d. Commingling of funds, failure to safeguard any funds, or credit funds, or any claim for fees, premiums, taxes, commissions, or brokerage moneys. e. Acts as a GA, MGA, program manager or administrator, surplus lines broker, wholesale insurance broker, captive insurer or risk retention group manager, notary public, claim adjuster or loss control service provider. f. Placement or failure to place reinsurance, failure to perform actuarial services, loss control or risk management services or any advice relating to mergers or acquisitions. g. Activities as an officer, director, partner, trustee, employee or consultant of any insurance company, self-insurance plan, RRG, insurance pool, reciprocal, captive insurer or other risk-assuming entity. h. Claim arising from services rendered after the suspension or revocation of the insured's license. i. Claim related to insurance placed with a captive insurance company, multi-employer health plan, RRG, PG, insurance company rated less than B+ by AM Best, alien or non-admitted insurer, or any self-insurance pool, trust or other "entity" not regulated by a state DOI. j. Personal Lines Exclusions: Any claim based upon, arising out of, resulting from, or in any way related to any insurance products or lines of insurance other than those listed as covered above, including, without limitation, the following insurance products or lines of insurance: workers compensation and employer's liability, general liability, products liability, commercial multi-peril, business owner's policy, commercial automobile, commercial property, commercial flood, aircraft, ocean or inland marine, professional liability, medical malpractice, directors and officers liability, employment practices liability, fidelity, surety, boiler and machinery, kidnap and ransom, reinsurance, international insurance, crop, hail, wind, earthquake, or pollution. j. Personal and Commercial Lines Exclusions: Any claim based upon, arising out of, resulting from, or in any way related to any insurance products or lines of insurance other than those listed as covered above, including, without limitation, the following insurance products or lines of insurance: commercial flood, aircraft, ocean or inland marine, professional liability, medical malpractice, directors and officers liability, employment practices liability, fidelity, surety, boiler and machinery, kidnap and ransom, reinsurance, international insurance, crop, hail, wind, earthquake, or pollution. k. Claims involving any insurance product or quasi insurance product which has not been approved by the proper insurance authorities. l. Claim arising out of a class action lawsuit. m. Claim involving loss control and risk management services. See Limited Personal Lines Property & Casualty Agent coverage Endorsement and Limited Personal and Commercial Lines Property & Casualty Agent Coverage Endorsement

No coverage for any claim in any way related to "financial services" provided in connection with investments/entities known to be "Troubled Securities" as of the effective date of this policy. See definition of Troubled Security. It is imperative that all potential claims arising from a Troubled Security be reported as such under the provisions of the Incident Reporting Endorsement at the time they first become recognized as such. (1). Admitted in writing its inability to pay its debts, or, in the case of a limited partnership or REIT, ceased or significantly, reduced the amount of its distributions due to its financial difficulties; (2). made a general assignment for the benefit of creditors; (3). been the subject of any proceeding seeking to adjudicate it a bankrupt or insolvent or seeking reorganization, arrangement, adjustment or composition of it or its debts under any law relating to bankruptcy, insolvency or reorganization or relief of debtors, or seeking appointment of a receiver, trustee or other similar official for it or for any substantial part of its property. (4). engaged in any business reorganization (including, without limitation, any transfer of all or substantially all of its assets, a "roll up", "roll over" or incorporation); (5). taken any corporate action to authorize any of the actions set forth above; (6). been the subject of a class action lawsuit involving its “securities”; (7). been under federal or state regulatory investigation with respect to its “securities”; or (8). been the subject of complaints or “suits” by “clients” of the First Named Insured or its “registered representatives”.

National Casualty Company

A+ (Excellent) : XV ($2 Billion or Greater)

Admitted

Applies to Wrongful Acts committed anywhere in the world provided any "Suit" for such "Damages" is brought within the "policy territory" (U.S., its territories or possessions, Puerto Rico or Canada). However, we may elect at any time, at our sole discretion, to investigate, settle or defend any "written claim" or "Suit" brought anywhere outside the "policy territory".

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Excludes same or similar, prior known acts or circumstances, purchase/sale of securities known to be in trouble as of the effective date, claims involving specific claims, entities or persons (listed - Madoff, etc.). Click Here for Endorsement  Click Here for Endorsement

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Insureds (without claims, incidents, disciplinary problems, or terminations for cause by their carriers, broker/dealers, investment advisors, etc.) who are fully retiring from the financial service industry will have the right to purchase an Extended Reporting Period for a multiple of their annual rate. UTS-3g (3-92) 1 yr at 100%. Must be applied for, elected and paid for within 30 days of the termination of coverage. Retiring insureds may apply for a longer ERP. Contact Customer Service for the application  Click Here for Endorsement

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Conflict of interest-type exclusions relating to market timing, late trading, soft dollar activities, breakpoint discounts and fees.  Click Here for Endorsement

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Belt and suspenders for warranty statement. Reiterates that claims arising from products known to be financially troubled are excluded and lists many specific excluded products and activities.  Click Here for Endorsement

Claims must be reported to the insurer as soon as practicable, but prior to the end of the policy period. Notify National Casualty C/O ProSurance Group immediately as a claim or potential claim can be denied if it is not reported in a timely fashion and result in NO coverage. ProSurance Group, Inc. 2685 Marine Way, Suite 1408, Mountain View, CA 94043. Claim questions may be directed to ProSurance Group at 650 428-0818.

Yes

Yes

Insureds are to report circumstances which MAY give rise to a "Written Claim". Click Here to view Incident Reporting Endorsement

Written notice or demand, including "suit", for monetary damages by a client of the Named Insured or Rep alleging a Wrongful Act, including a complaint, arbitration proceeding, or civil lawsuit. Suit includes civil or arbitration, but not criminal or regulatory matters.

Any negligent breach of duty, error, misstatement, misrepresentation, omission, "publication injury" or other negligent act done or attempted by an insured or any "individual" for whose acts the insured is legally responsible, in conjunction with the provision of covered "financial services" for the "Client".

Monetary judgment, award or settlement. Does not include fines, penalties, punitives. See Complete Definition of Damages

As soon as practicable, but prior to the end of the policy period.

Yes. See Insured's Duties In Event of Claim. See also Incident Reporting Endorsement

"Duties In The Event Of Error, Omission, Claim Or Suit. As soon as an insured knows of an alleged "wrongful act" which may result in a "Written Claim" covered by this policy, the insured must give us written notice as soon as practicable of the details of the "wrongful act", including the circumstances giving rise to the "wrongful act", a description of the services provided or that should have been provided, the name and address of any potential claimant and the type and amount of injury suffered by said claimant. Include as many details as possible. If a "Written Claim" is made or "suit" is brought against an insured, the insured, as a condition precedent to our obligations under this policy, must immediately send us every demand, notice, summons or other process relating to said claim or “suit”; provided, except as provided in SECTION II A. 3. or SECTION VII K, in no event shall such "Written Claim" or “suit” be accepted by us later than the last day of the insured’s “policy period”. All notices called for in this paragraph must be provided to us by a separate document, and not just as part of a renewal application for insurance. The insured shall authorize us to obtain all records and other information we deem necessary for the settlement, negotiation or defense of a "Written Claim" or "suit". The insured must cooperate with us in the investigation and defense of a "Written Claim" or "suit". At our request, the insured must: submit to examination under oath; assist us in making settlements or conducting "suits"; and attend and assist in obtaining the attendance of witnesses at hearings, depositions, arbitration proceedings, trials and other proceedings. The insured must cooperate with us in enforcing any right the insured may have against any “individual” or “entity” for contribution or indemnity. The insured must not, except at the insured's own cost, voluntarily pay any money, assume any obligation or incur any expense without our prior written consent."

Yes.See Definition of Wrongful Act

See Definition of Interrelated Wrongful Acts This is an incomplete summary of the policy terms and conditions intended to only provide an overview. This contains some, but not all, features that determine coverage. See the entire policy for all details. Contact Interweb Insurance at CustomerService@InterWebInsurance.com with any questions or for a sample of the policy. This is the copyrighted work product of Interweb Insurance, LLC. Terms as of May 2014.© Interweb Insurance, LLC