Application for Business and Management (BAM) Indemnity Insurance

NOTICE: THE POLICY FOR WHICH THIS APPLICATION IS BEING MADE, SUBJECT TO ITS TERMS, APPLIES ONLY TO ANY CLAIM OR LOSS DISCOVERED (AS APPLICABLE IN THE COVERAGE SECTION FOR WHICH APPLICATION IS MADE) MADE AGAINST ANY OF THE INSUREDS DURING THE POLICY PERIOD. THE LIMIT OF LIABILITY AVAILABLE TO PAY DAMAGES OR SETTLEMENTS SHALL BE REDUCED AND MAY BE EXHAUSTED BY AMOUNTS INCURRED AS COSTS, CHARGES AND EXPENSES (AS DEFINED IN THE COVERAGE SECTION FOR WHICH APPLICATION IS MADE), AND COSTS, CHARGES AND EXPENSES SHALL BE APPLIED TO THE RETENTIONS.

General Instructions for Completing This Application

1. Please type or print in ink.
2. Please read carefully and answer all questions. If a question is not applicable,
3. The Application must be signed by an executive officer.
4. This Application and all exhibits shall be held in confidence.
5. Please read the Policy for which application is made (the "Policy") prior to Application.
6. The terms as used herein shall have the meanings as defined in the Policy.

APPLICATION

* = Required

I. General Information

1.	Name of Parent Company *
	Address
			(Number)	(Street)

		(City)	(State)	(Zip Code)

2. Standard Industrial Classification Code (SIC):

3. Nature of Operations:

4. Has the Company been in business longer than three (3) years?
Yes No

5. Is the Company public-held or a public reporting company under the Securities Exchange Act of 1934?
Yes No

6. Does the Parent Company own more than three (3) subsidiaries?
Yes No

If yes, please provide details on a separate page.

8. Does the Company contemplate transacting any mergers or acquisitions in the next 12 months where such merger or acquisition would involve more than 50% of the total assets of the Company?
Yes No

If yes, please provide details on a separate page.

7. Has the Company in the past 18 months been involved with any actual, negotiated or attempted merger, acquisition or divestment?
Yes No

If yes, please provide details on a separate page.

II. Financial Information

1. Describe the following financial information of the Company for the most recent fiscal year-end.

a)	Total Assets	b)	Gross Revenues
	$0 to 5,000,000		$0 to 5,000,000
	$5,000,001 to 25,000,000		$5,000,001 to 25,000,000
	$25,000,001 to 100,000,000		$25,000,001 to 100,000,000
	$100,000,001 to 250,000,000		$100,000,001 to 250,000,000
	over $250,000,000		over $250,000,000

c)	Net income ___ or net loss ___	d)	Cashflow from operating activities and applicable amount: positive ____ or negative ____ and applicable amount:
	$0 to 5,000,000		$0 to 5,000,000
	$500,001 to 1,000,000		$500,001 to 1,000,000
	$1,000,001 to 3,000,000		$1,000,001 to 3,000,000
	$3,000,001 to 5,000,000		$3,000,001 to 5,000,000
	over $5,000,000		over $5,000,000

2. Do the current liabilities exceed current assets?
Yes No

If yes, please provide details on a separate page.

3. Do long-term liabilities exceed 75% of total assets?
Yes No

If yes, please provide details on a separate page.

4. Will more than 50% of the total long-term liabilities mature within the next 18 months?
Yes No

If yes, please provide details on a separate page.

5. Does the Company anticipate in the next 12 months or has the Company transacted in the last 24 months any restructuring or legal or financial reorganization or filing for bankruptcy?
Yes No

If yes, please provide details on a separate page.

III. Prior Insurance Information

1. Describe any current insurance maintained. The Continuity Date below means the policy inception date for which the most recent main form application was attached.

Coverage	Yes	No	Limits	Continuity Date
Employment
Directors and Officers
Fiduciary
Crime
Technology Media, & Professional Services
Miscellaneous Prof. Services

2. Has any insurer made any payments, taken notice of claim or potential claim or non renewed any management liability or similar insurance any time in the last 24 months?
Yes No

If yes, please provide details on a separate page.

IV. Prior Activities Information

1. Within the last three years, has any person or entity proposed for this insurance been the subject of or involved in any litigation, administrative proceeding, demand letter or formal or informal governmental investigation or inquiry including any investigation by the Department of Labor or the Equal Employment Opportunity Commission
Yes No

If yes, please provide details on a separate page.

V. Other Information

1.	The undersigned declares that to the best of his/her knowledge the statements herein are true. Signing of this Application does not bind the undersigned to complete the insurance, but it is agreed that this Application shall be the basis of the contract should a Policy be issued, and this application will be attached to and become a part of such Policy, if issued. Insurer hereby are authorized to make any investigation and inquiry in connection with this Application as they may deem necessary.
2.	It is warranted that the particulars and statements contained in the Application for the proposed Policy and any materials submitted herewith (which shall be retained on files by Insurer and which shall be deemed attached hereto, as if physically attached hereto), are the basis for the proposed Policy and are to be considered as incorporated into and constituting a part of the proposed Policy.
3.	It is agreed that in the event there is any material change in the answers to the questions contained herein prior to the effective date of the Policy, the applicant will notify Insurer and, at the sole discretion of Insurer, any outstanding quotations may be modified orwithdrawn.
4.	It is agreed that in the event there is any misstatement or untruth in the answers to the questions contained herein, Insurer have the right to exclude from coverage any claim based upon, arising out of or in connection with such misstatement or untruth.

Signed: (Must Be Signed By an Executive Officer of the Parent Company)

Name: (Please Print or Type)

Capacity:

Company:

Date:

Submitted by: (Agent)

Date:

* For purposes of creating a binding contract of insurance by this application or in determining the rights and obligations under such contract in any court of law, the parties acknowledge that a signature reproduced by either facsimile or photocopy shall be the same force and effect as an original signature and that the original and any such copies shall be deemed on and the same document.

Please fully complete and attach the Information for the Coverage Section (s) being sought or bound.

Employment Practices Coverage Section Information

1. Is the Parent Company seeking Employment Practices coverage?
Yes No

If yes, please answer the following questions.

Total number of employees (full-time and part-time).
0 to 10	151 to 225
11 to 30	226 to 300
31 to 50	301 to 400
51 to 75	401 to 500
76 to 100	over 500
101 to 150	Exact number,if over 500

Note: When answering the above range of employees, multiply the number of part-time employee by a factor of .5 and add to number of full-time employees.

2. Do more than 25% of all employees currently earn more than $50,000?
Yes No

3. Have more than 25% of the officers or management voluntarily left the employ of the Company or had employment with the Company terminated within the last 18 months?
Yes No

If yes, please provide details on a separate page.

4. Does the Company anticipate in the next 12 months, or has the Company transacted in the last 12 months, any plant, facility, branch or office closing, consolidations or layoffs affecting 20% or more of the employees of the Company?
Yes No

If yes, please provide details on a separate
page.

5. Describe the internal controls the Company maintains for Employment
Practices.

a)	Have all management staff and officers attended training and education programs on sexual harassment within the last 18 months? Yes No
b)	Does labor relations counsel review the employment policies/procedures at least annually? Yes No
c)	Is there a separate Human Resources Department? Yes No
d)	Does the Company publish and distribute an employee handbook to every employee? Yes No
e)	Are there written procedures for handling employee complaints of discrimination or sexual harassment? Yes No
f)	Are there written procedures for handling employee grievances or complaints? Yes No

Directors & Officers and Company Coverage Section Information

Is the Parent Company seeking Directors & Officers and Company coverage?
Yes No

If yes, please answer the following questions.

1. Do the Directors and Officers as a whole, directly or indirectly, own or control the voting rights of more than 50% of the outstanding securities of the Parent Company?
Yes No

2. Within the last 18 months, has the Company transacted or attempted a private debt or equity offering of securities?
Yes No

If yes, please provide details on a separate page.

3. Within the next 18 months does the Company anticipate any:

a)	private debt equity offering of securities? If yes, please provide details on a separate page. Yes No
b)	public offering of securities? If yes, please provide details on a separate page. Yes No

4. Does the Company render any professional services for others for a fee or compensation? If yes, please provide details on a separate page.
Yes No

5. Does the Company act as a general partner in any partnership? If yes, please provide details on a separate page.
Yes No

6. Does the Company have any direct or indirect insurance operations?
If yes, please provide details on a separate page.
Yes No

Fiduciary Coverage Section Information

Is the Parent Company seeking Fiduciary Liability coverage?
Yes No

If yes, please answer the following questions.

1. Does the Company have more than five (5) plans to be covered under the proposed insurance? If yes, please provide details on a separate page.
Yes No

2. Indicate the type of plans to be insured.

Pension		Welfare Benefit
Profit Sharing		Employee Stock Ownership

3. Total number of employees currently enrolled in all plans:

0 to 10	151 to 225
11 to 30	226 to 300
31 to 50	301 to 400
51 to 75	401 to 500
76 to 100	over 500
101 to 150	Exact number, if over 500

4. Total asset value of all plans combined for the most recent fiscal year.

$0 to 1,000,000

$1,000,001 to 5,000,000

$5,000,001 to 25,000,000

$25,000,001 to 100,000,000

over $100,000,000

5. Do all of the plans conform to the standards of eligibility, participation, vesting and other provisions of the Employee Retirement Income Security Act of 1974, as amended?
Yes No

6. Are the plans reviewed at least annually to assure that there are no violations of any plan trust agreements, prohibited transactions or party in interest rules?
Yes No

7. Are any of the plans under funded by more than 30%? If yes, please provide details on a separate page.
Yes No

8. Does the Company have any delinquent contributions to any plan? If yes, please provide details on a separate page.
Yes No

9. Have any plans been terminated, suspended, merged or dissolved within the last 24 months? If yes, please provide details on a separate page.
Yes No

10. Does the Company anticipate terminating, suspending, merging or dissolving any plans within the next 18 months? If yes, please provide details on a separate page.
Yes No

11. Are more than 10% of the assets of any plan, other than an Employee Stock Ownership Plan, invested in any securities of or loan to the Company? If yes, please provide details on a separate page.
Yes No

Crime Coverage Section Information

Is the Parent Company seeking Crime coverage?
Yes No

If yes, please answer the following questions.

1. Total number of employees:

0 to 10	151 to 225
11 to 30	226 to 300
31 to 50	301 to 400
51 to 75	401 to 500
76 to 100	over 500
101 to 150	Exact number, if over 500

2. Number of officers and employees who handle, have custody or maintain records of money, securities or other property:

0 to 5

6 to 15

16 to 50

over 50

3. Is there an annual audit or review performed by an independent CPA on the books and accounts, including a complete verification of all securities and bank balances?
Yes No

4. Are bank accounts reconciled by someone not authorized to deposit or withdraw from those accounts?
Yes No

5. Is counter signature of checks required?
Yes No

6. Is the applicant seeking Employee Benefit Plan Crime coverage?
Yes No

7. Are any of the plans under funded by more than 30%? If yes, please provide details on a separate page.
Yes No

8. Do audit practices include tests to detect unauthorized programming changes?
Yes No

9. Are computerized check writing operations segregated from departments that authorize checks?
Yes No

Technology, Media & Professional Services Coverage Section Information

Is the Parent Company seeking Technology, Media and Professional Services coverage?
Yes No

If yes, please answer the following questions.

1. Describe in detail the professional services for which coverage is desired:

2. Date established:

3. Is the Applicant engaged in any business other than as described in question 1.?
Yes No

If yes, please attach an explanation and estimated receipts.

4. What percentage of the applicant’s business involves subcontracting work to others?
%

5. List the total gross receipts for the past year, which were derived from the services, listed in question 1. In addition, please provide the projected receipts for the current and next year in which insurance coverage is desired.

Year	Gross Receipts
a. Next Year 20	$
b. Current Projected Year 20	$
c. Prior Year 20	$

6. What industries are the professional services described in question 1. provided to (e.g., government, banking, medical, aviation, etc.)?

7. Is the Applicant controlled or owned by, or associated or affiliated with, or does it own, any other firm business enterprise? If yes, please attach an explanation.
Yes No

a.	What is the number of all principals, partners, officers and professional employees directly engage in providing services to clients:
b.	Average years of experience for the above mentioned for services requesting coverage:
c.	Number of all non-professional employees (clerks, secretaries, etc.)

8. Are any significant changes in the nature or size of the Applicant’s business anticipated over the next 12 months? Or have there been any such changes in the past 12 months? If yes, please attach an explanation (change in size of less than 25% need not be explained.)
Yes No

10. Are any staff members considered “Licensed Professionals” or do any staff members hold any professional designations or belong to any professional societies/Associations? If yes, attach individuals name and designated affiliation.
Yes No

11. Describe Applicant’s five (5) largest jobs or projects during the past three (3) years.

Client Name	Services Provided	Total Gross Billing
		$
		$
		$
		$
		$

12. Does the Applicant have a written contract or agreement for every project?
Yes No

If yes, please attach a sample copy.

a.	Provide the percentage of the Applicant’s revenue where a written contract is not secured %
b.	Does the Applicant’s contracts contain any of the following: (check all that apply).
		hold harmless or indemnification clauses in your favor?
		hold harmless or indemnification clause in your client’s favor?
		guarantees or warranties?
		specific description of the services you will provide?
		payment terms?
		ownership of materials/products developed terms?

13. Describe steps taken to minimize/manage business risks:

14. Please provide the following information on Applicant’s professional liability insurance for the past three (3) years:

Name of Insurer	Limits of Liability	Deductible	Policy Period	Premium	Retro Date

15. Please provide the following:

a.	Standard contract(s) used.
b.	Descriptive or promotional brochures.
c.	Website address: www

16. Prior to publishing content or releasing packaged or custom software/hardware, do you have an attorney facilitate a patent/copyright/trademark search?
Yes No

If yes, please give name of the attorney’s firm:

17. Describe the Applicant’s policies and procedures for removing controversial or potentially infringing material:

18. Do you have a safety procedure in place to prevent the transmission of viruses?
If yes, please explain.

19. Are all of your PC’s equipped with anti-virus software? If yes, what brand?
Yes No

If yes, what brand?

20. Are there firewalls in place as a part of your security system?
Yes No

a.	What firewall security do you employ?
b.	Was it configured by professional personnel? Yes No
c.	Did you alter it in any way before installing it? Yes No

21. What kind of safeguards do you have in place to prevent unauthorized persons from accessing your Web Sites or On-Line Service database?

22. Have any principals, partners, officers or professional employees ever been the subject or reprimand or disciplinary or criminal actions by authorities as a result of their professional activities? If yes, please attach details.
Yes No

23. Does any person to be insured have knowledge or information of any act, error or omission, which might reasonably be expected to give rise to a claim against him or his predecessors in business? If yes, please attach details.
Yes No

24. Have any errors and omissions claims been made against any proposed insured(s)?
If yes, please attach details.
Yes No

25. Has the Applicant been a party to any lawsuit or other legal proceedings within the past 5 years? If yes, please attach details.
Yes No

Miscellaneous Professional Services Coverage Section Information

Is the Parent Company seeking Miscellaneous Professional Services coverage?
Yes No

If yes, please answer the following questions.

1. Describe in detail the professional services for which coverage is desired:

2. Date established:

3. Is the Applicant engaged in any business other than as described in question 1.?
Yes No

If yes, please attach an explanation and estimated receipts.

4. What percentage of the applicant’s business involves subcontracting work to others?
%

Year	Gross Receipts
a. Next Year 20	$
b. Current Projected Year 20	$
c. Prior Year 20	$

6. What industries are the professional services described in question 1. provided to (e.g., government, banking, medical, aviation, etc.)?

7. Is the Applicant controlled or owned by, or associated or affiliated with, or does it own, any other firm business enterprise? If yes, please attach an explanation.
Yes No

a.	What is the number of all principals, partners, officers and professional employees directly engage in providing services to clients:
b.	Average years of experience for the above mentioned for services requesting coverage:
c.	Number of all non-professional employees (clerks, secretaries, etc.)

8. Are any significant changes in the nature or size of the Applicant’s business anticipated over the next 12 months? Or have there been any such changes in the
past 12 months? If yes, please attach an explanation (change in size of less than 25% need not be explained.)
Yes No

10. Are any staff members considered “Licensed Professionals” or do any staff members hold any professional designations or belong to any professional societies/Associations?
Yes No

If yes, attach individuals name and designated affiliation.

11. Describe Applicant’s five (5) largest jobs or projects during the past three (3) years.

Client Name	Services Provided	Total Gross Billing
		$
		$
		$
		$
		$

12. Does the Applicant have a written contract or agreement for every project?
If yes, please attach a sample copy.
Yes No

If yes, please attach a sample copy.

a.	Provide the percentage of the Applicant’s revenue where a written contract is not secured. %
b.	Does the Applicant’s contracts contain any of the following: (check all that apply).
		hold harmless or indemnification clauses in your favor?
		hold harmless or indemnification clause in your client’s favor?
		guarantees or warranties?
		specific description of the services you will provide?
		payment terms?
		ownership of materials/products developed terms?

13. Describe steps taken to minimize/manage business risks:

14. Please provide the following information on Applicant’s professional liability insurance for the past three (3) years:

Name of Insurer	Limits of Liability	Deductible	Policy Period	Premium	Retro Date

15. Please provide the following:

a.	Standard contract(s) used.
b.	Descriptive or promotional brochures.
c.	Website address: www

16. Have any principals, partners, officers or professional employees ever been the subject of reprimand or disciplinary or criminal actions by authorities as a result of their professional activities?
Yes No

If yes, please provide details on a separate page.

17. Does any person to be insured have knowledge or information of any act, error or omission which might reasonably be expected to give rise to a claim against him or his predecessors in business?
Yes No

If yes, please provide details on a separate page.

18. Have any professional liability claims ever been made against any proposed insured(s)? If
yes, please provide details on a separate page.
Yes No