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The ACE Financial Institutions Bond is aimed at assisting a financial institution in enhancing their risk management program by protecting the institution from the ever-increasing threat of fraud.
The Bond is aimed at providing financial institutions with comprehensive worldwide cover of a wide range of physical and financial losses involving employees and third persons. It also provides cover for losses involving computer systems, voice initiated funds transfers, and facsimile instructions.
Proposal Form
The financial institution has the choice of purchasing some or all of the insuring clauses within the wording.
Following are the key features of the cover, illustrated by each insuring clause:
Coverage features
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Employee Dishonesty Loss caused by dishonest or fraudulent acts by an employee, whether committed alone or in collusion with others, which caused an improper personal financial gain to the employee or the intent to cause loss to the financial institution |
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Premises Loss due to the theft, mysterious inexplicable disappearance, misplacement, damage or destruction of property from the financial institution |
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Transit Loss of property from any cause while in transit by a messenger of the financial institution or in an armoured motor vehicle. Loss of any non-negotiable instruments being lost or damaged while in transit anywhere in the custody of any security company |
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Forgery or Fraudulent Alteration Loss as a result of forged or fraudulently altered cheques, bills of exchange, bankers drafts, bankers acceptances, certificates of deposit, withdrawal receipts or promissory notes |
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Forged Securities Loss due to reliance on securities or similar written instruments, such as guarantees or deeds, that were forged, fraudulently altered, lost or stolen |
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Counterfeit Currency Loss due to reliance on any counterfeit paper currency or coin issues or purporting to have been issued as legal tender in any country |
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Investment Managers Elite Insurance |
The ACE Investment Managers Elite Insurance policy has been created to provide protection to investment managers, funds managers and responsible entities for exposures relating to their directors and officers' liabilities, professional liabilities and crime insurances.
Proposal Form
Coverage features
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Covers claims arising from acts, error, omission, breach of duty, breach of trust, breach of authority, misstatement, or misleading statement by the investment manager or managed investment scheme while performing investment services |
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Broad definition of investment services |
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Covers fraud, dishonesty, theft, computer or funds transfer fraud, counterfeiting, forgery, or criminal damage by any employee or third party |
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Covers the investment manager, the managed investment scheme, the responsible entity, and the compliance committee |
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Cover extends to persons for whom the responsible entity is responsible |
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Covers all past or present subsidiaries |
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Covers all directors, officers or employees |
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Defence costs are advanced to the entity as they are incurred |
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Covers civil and criminal liabilities |
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Discovery period of 12 months or 72 month options |
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No retroactive or prior acts exclusion |
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Sixty-day automatic cover for subsidiaries that are newly created or acquired |
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Severability of the insured persons and proposal form |
Coverage enhancement requests
The following enhancements can be considered if requested by the financial institution:
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Multi-year policies are available |
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Run-off cover if the insured or any of its subsidiaries has been taken over or merged with another entity |
Additional features
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Access to consultants for risk management and claims handling advice |
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Local underwriting and account management expertise. |
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Worldwide cover |
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Large capacity available |
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Global representation |
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Financial Institutions Electronic and Computer Crime Policy |
Computer fraud is considered one of the greatest risks of financial institutions.
Remote access to computer systems has enhanced the threat of computer "hackers" dialling into a company's system, or a virus being introduced by authorised or unauthorised persons. Risk management programs are being increasingly updated to mitigate exposures posed by computer fraud.
The ACE Electronic Computer Crime policy is designed as a companion policy to a financial institution's risk prevention program and is sold alongside the ACE Financial Institutions Bond Insurance.
Proposal Form
Coverage features
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Computer systems:
This insuring agreement provides cover in respect of losses arising due to the fraudulent input, modification, or destruction by third parties of electronic data into the insured's computer system, a service entity's computer system, an electronic funds transfer system or a customer communication system |
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Computer Virus Loss due to the damage or destruction of electronic data or software caused by the introduction of a computer virus into the computer system of the insured |
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Electronic Data, Electronic Media, Electronic Instruction |
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Loss due to: |
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The acts of a hacker causing damage or destruction to electronic data or software; |
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The fraudulent modification of electronic data or software by a third party; |
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robbery, burglary, larceny or theft of electronic data or software |
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Electronic Transmissions Loss resulting directly from a customer of the insured, a clearing house, custodian, or financial institution having transferred, paid or delivered any funds or property, on the basis of relying on fraudulent or unauthorised electronic communications from the insured |
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Electronic Communications Loss due to the transfer, payment or delivery of funds or property, resulting from the insured having relied on fraudulent or unauthorised electronic communications from customers, a clearing house, custodians or financial institutions |
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Insured's Service Entity Operations Loss due to the fraudulent input, modification or destruction of electronic data whilst the insured is acting as a service entity for customers. |
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Voice Initiated Transfers Loss resulting directly from the insured having transferred any funds on the faith of any unauthorised and fraudulent customer voice initiated funds transfer instructions |
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Extortion Loss due to a person other than an employee having gained unauthorised access to the insured's computer system and threatens to surrender any funds or property, sell or disclose confidential security codes, or damage or destroy electronic data or software |
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Claims Preparation Costs Reasonable expenses incurred by the financial institution in preparing any valid claim for any loss covered by the Electronic Computer Crime policy |
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Legal Fees and Legal Expenses Reasonable legal fees and expenses incurred by the insured with the prior written approval of ACE, in the defence of any legal suit or proceeding, to determine the financial institution's liability for a covered loss under the policy |
Additional features
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Access to consultants for risk management and claims handling advice |
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Local underwriting and account management expertise |
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Worldwide cover |
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Large capacity available |
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Global representation |
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Financial Institutions Professional Indemnity Insurance Policy |
The ACE Financial Institutions Professional Indemnity Insurance policy has been created to provide the following coverage features for a financial institution.
Our target market includes banks, investment companies, building societies, credit unions, leasing companies, finance companies and insurance companies. The policy can be tailor made to suit the financial institution's individual needs.
Proposal Form
Coverage features
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Covers claims arising from acts, error, omission, breach of duty, breach of trust, breach of authority, misstatement, or misleading statement by the financial institution while performing or failing to perform professional services |
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Broad definition of professional services |
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Covers the financial institution and its past or present subsidiaries |
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Automatic run-off cover to end of policy period for financial institution or its subsidiaries, if acquired |
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Covers all directors, officers or employees |
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Covers defence costs which are advanced to financial institution as incurred |
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Covers civil and criminal liabilities |
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Discovery period of 12 months or 72 month options |
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No retroactive or prior acts exclusion |
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Sixty-day automatic cover for subsidiaries that are newly created or acquired |
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Severability of the insured persons and proposal form |
Coverage enhancement requests
The following enhancement can be considered if requested by the financial institution:
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Policy can be extended to include agents |
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Multi-year policies are available |
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Run-off cover if financial institution or any of its subsidiaries has been taken-over or merged with another entity |
Additional features
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Access to consultants for risk management and claims handling advice |
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Local underwriting and account management expertise. |
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Worldwide cover |
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Large capacity available |
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Global representation |
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