Form 40-17G MADISON FUNDS

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Financial Institution Bond for Fiduciaries of ERISA Plans Binder Letter

 

Contact Information
To:	Phone:
Megan Belter
Producer:	Email Address:
M3 INSURANCE SOLUTIONS INC	[email protected]
Licensed Producer Contact:	Date:
Megan Belter	December 12, 2024

 

Account Information
Applicant Name:	MADISON INVESTMENT HOLDINGS, INC.
Applicant Address:	550 SCIENCE DRIVE
	MADISON, WI 53711

 

Policy Information

Type of submission: Renewal

Product: Financial Institution Bond for Fiduciaries of ERISA Plans

Policy Form: PF-52811 (08/21)

Issuing Company: Federal Insurance Company

Paper Type: Admitted

Policy Period: December 15, 2024 to December 15, 2025

Policy Number: J06101550

 

 

 

 

Cover Letter

Dear Megan,   Please review this binder for accuracy and contact CHUBB prior to the effective date of policy coverage in the event of any inaccuracies to this binder. If CHUBB does not hear from you prior to the effective date, it will be assumed that this binder has been accepted as an accurate description of our agreed upon terms of coverage.   Sincerely,  Shelby Gooldy  (312) 529-6885  [email protected]

 

 

 

Payment Plan Option
☒	Agency Bill
☒	Pre-Paid* (100% in 1 payment)

 

Subjectivities

CHUBB hereby binds the coverage described below. However, any obligations the Insurer may have under this binder are conditioned upon each of the following conditions having first been met.

●     There are no subjectivities for the US policy.

 

 

 

Premium Summary
Premium
Policy Premium	$21,051.00
Taxes, Assessment and Surcharges
Total Taxes/Assessments/ Surcharges	$0.00
Total Quoted Premium	$21,051.00

 

Insuring Clauses
	Limit
Total Single Loss Limit Of Liability For All Insured Plans	$21,051,147
Maximum Total Single Loss Limit of Liability For All Insured Plans	$23,156,262

 

 

 

The following Endorsement(s) will be added to the basic contract(s)
The titles and headings are for convenience only. Please refer to the policy and endorsements for a description of coverage.
Title	Form Number
WISCONSIN AMENDATORY ENDORSEMENT	PF-55939 (08/21)
AUTOMATIC COVERAGE FOR NEW PLANS ENDORSEMENT	PF-52709 (08/21)
SCHEDULE OF OTHER FIDUCIARIES ENDORSEMENT	PF-53220 (08/21)
STATE AMENDATORY INCONSISTENCY ENDORSEMENT	PF-54424 (08/21)

 

The following Basic Contract(s) are applicable for this binder
Title	Form Number
Financial Institution Bond For Fiduciaries of ERISA Plans	PF-52811 (08/21)

 

The following Notice(s) will be added to the basic contract(s)
Title	Form Number
Notice of Loss Control Services	14-02-23030 (05/18)
Chubb Producer Compensation Practices and Policies	ALL-2o887a (09/19)
Trade or Economic Sanctions Notice	ALL-21101 (09/19)
Social Engineering Tips	ALL-317454 (03/21)
Wisconsin Notice To Policyholders	ALL-5X51a (02/06)
U.S. Treasury Departments Office of Foreign Assets Control - OFAC - Advisory Notice to Policyholders	PF-17914a (04/16)

 

 

 

Conditions of this Binder

This Binder is valid for 30 days from the Policy Period inception date.   Please read this Binder carefully, as the limits, coverage and other terms and conditions may vary significantly from those requested in your submission and/or from the expiring policy. Terms and conditions that are not specifically mentioned in this Binder are not included. The terms and conditions of this Binder supersede the submitted insurance specifications and all prior quotes and binders. Actual coverage will be provided by and in accordance with the policy as issued.   The insurer is not bound by any statements made in the submission purporting to bind the insurer unless such statement is reflected in the policy or in an agreement signed by someone authorized to bind the insurer.   When signed by the Insurer, the coverage described above is in effect from 12:01 AM (local time at the address shown above) of the Policy Period inception date listed above to 12:01 AM (local time at the address shown above) of the Policy Period expiration date listed above pursuant to the terms, conditions and exclusions of the policy form listed above and any policy endorsements described above. Unless otherwise indicated, this Binder may be cancelled by the Insured, or by the Producer on behalf of the Insured, by written notice to the Insurer or by the surrender of this Binder stating when such cancellation shall be effective. Unless otherwise indicated, this Binder may be cancelled by the Insurer prior to the Policy Period inception date by sending written notice to the Insured at the address shown above stating when such cancellation shall be effective. Unless otherwise indicated, this Binder may be cancelled by the Insurer on or after the Policy Period inception date in the same manner and upon the same terms and conditions applicable to cancellation of the policy form listed above. If cancellation of the Binder, by or on behalf of either the Insured or the Insurer, is effective after the Policy Period inception date, then the Insurer shall be entitled to the earned premium, on a pro-rata basis, for the covered period. Issuance by the Insurer and acceptance by or on behalf of the Insured of the policy shall render this Binder void except as indicated below.   Conditions precedent to coverage afforded by this Binder are: (1) receipt, review and acceptance of the information required herein within the stated timeframe; and (2) that no material change in the risk occurs and no submission is made to the Insurer of a claim or circumstances that might give rise to a claim between the date of this Binder indicated above and the Policy Period inception date. If such required information is not received, reviewed and accepted within the stated timeframe, or such material change in the risk is discovered or submission of a claim or circumstance is made, then the proposed insurance coverage will be void ab initio (“from the beginning”). The underwriter, at its sole discretion, may also modify the terms and conditions of the policy, and/or cancel coverage pursuant to the terms of the policy.   The Cornerstone Name and Logo is a designation that Chubb gives to those insurance agents with whom Chubb has established a mutually beneficial business relationship. The designation will be used in correspondence and advertising that is directed at Customers of Cornerstone agents, including quote letters, product advertising and related materials.   Note: If the Insuring Company noted above is Chubb Custom Insurance Company, Westchester Surplus Lines Insurance Company, Executive Risk Indemnity Inc. (in Connecticut only) or Illinois Union Insurance Company, then this insurance is issued pursuant to the state Surplus Lines laws that the Insured is domiciled. Persons insured by Surplus Lines carriers do not have the protection of the above captioned state’s Guaranty Act to the extent of any right of recovery for the obligation of an insolvent unlicensed insurer.   Any applicable taxes, surcharges or countersignature fees, etc., are in addition to the above bound figures. Your office is responsible for making State Surplus Lines Filings and complying with all applicable laws. Premium Surcharge Notice is attached, if applicable.   Sincerely,  Shelby Gooldy  (312) 529-6885  [email protected]

 

 

 

PREMIUM BILL   Date:

 

Insured:

MADISON INVESTMENT HOLDINGS, INC.

 

Producer:	M3 INSURANCE SOLUTIONS INC
	828 JOHN NOLEN DRIVE
	MADISON, WI 53713

 

Company:

Federal Insurance Company

 

THIS BILLING IS TO BE ATTACHED TO AND FORM A PART OF THE POLICY REFERENCED BELOW.

 

Policy Number:

J06101550

 

Policy Period:

12-15-2024 to 12-15-2025

 

NOTE: PLEASE RETURN THIS BILL WITH REMITTANCE AND NOTE HEREON ANY CHANGES. BILL WILL BE RECEIPTED AND RETURNED TO YOU PROMPTLY UPON REQUEST.

 

PLEASE REMIT TO PRODUCER INDICATED ABOVE. PLEASE REFER TO J06101550

 

Product		Effective Date	Premium
Financial Institution Bond for Fiduciaries of ERISA Plans		12-15-2024	$21,051.00

	TOTAL POLICY PREMIUM		$21,051.00

 

WHEN REMITTING PLEASE INDICATE POLICY OR CERTIFICATE NUMBER

 

Form 26-10-0426 (Ed. 2/98)

 

 

Notice of Loss Control Services

 

Insuring Company: Federal Insurance Company

 

As a Chubb policyholder, you have loss prevention information and/or services available to you, as listed in this Notice. You may order any brochure by email to [email protected] and to view our full suite of loss prevention brochures/services go to www.chubb.com/us/fl-lossprevention

 

Directors and Officers (D&O) Liability Loss Prevention Services

 

●

Directors and Officers Liability Loss Prevention Manuals:

Directors and Officers Liability Loss Preventions- #14-01-0035

Directors and Officers Securities Litigation Loss Preventions- #14-01-0448

Director Liability Loss Prevention in Mergers and Acquisitions- #14-01-1099

Directors and Officers Liability Loss Prevention for Not-for-Profit- -#14-01-0036

Cyber Loss Mitigation for Directors -#14-01-1199

 

Employment Practices Liability (EPL) Loss Prevention Services

 

●

Toll-free Hot Line

 

Have a question on how to handle an employment situation? Simply call 1.888.249.8425 to access the nationally known employment law firm of Jackson Lewis P.C. We offer customers an unlimited number of calls to the hot line at no additional charge.

 

●

ChubbWorks.com

ChubbWorks.com is a web-based platform that offers multiple services including overviews of employment laws, sample employment policies and procedures, and on-line training. To gain immediate access to ChubbWorks go to www.chubbworks.com and register using your policy number.

 

●

Employment Practices Loss Prevention Guidelines Manual

 

Employment Practices Loss Prevention Guidelines- #14-01-0061

 

●

Loss Prevention Consultant Services

 

Chubb has developed a network of more than 120 law firms, human resources consulting firms, and labor economist/statistical firms that offer specialized services for employment issues.

 

●

Public Company EPL Customers

 

Employment Practices Loss Prevention Guidelines - Written by Seyfarth Shaw exclusively for Chubb this manual provides an overview of key employment issues faced by for-profit companies and offers proactive idea for avoiding employment lawsuits.

 

●

Private Company EPL Customers

Employment Practices Loss Prevention Guidelines - Written by Seyfarth Shaw exclusively for Chubb this manual provides an overview of key employment issues for -profit companies and offers proactive idea for avoiding employment lawsuits.

 

14-02-23030 (05/2018)

Page 1 of 2

 

Fiduciary Liability Loss Prevention Services

 

●

Fiduciary Liability Loss Prevention Manual

Who May Sue You and Why: How to Reduce Your ERISA Risks and the Role of Fiduciary Liability Insurance #14-01-1019

 

Crime Loss Prevention Services

 

●

Crime/Kidnap, Ransom & Extortion Loss Prevention Manual

 

Preventing Fraud: How Anonymous Hotlines Can Help #14-01-1090 

 

Cyber Security Loss Prevention Services

 

Visit: https://www2.chubb.com/us-en/business-insurance/cyber-security.aspx to learn more about Chubb’s Cyber Services for our policyholders.

 

Health Care Directors and Officers (D&O) Liability Loss Prevention Services

 

●

Readings in Health Care Governance Manual

Readings in Health Care Governance -#14-01-0788

 

●

ChubbWorks.com

ChubbWorks.com for Health Care Organizations - The Health Care Zone is a free online resource containing health care specific loss prevention information for employment practices liability, directors and officers (D&O) liability, and fiduciary liability exposures. To gain immediate access to ChubbWorks go to www.chubbworks.com and register using your policy number.

 

●

Health Care D&O Loss Prevention Consultant Services

Health Care D&O Loss Prevention Consultant Services- #14-01-1164

 

 

The services provided are advisory in nature. While this program is offered as a resource in developing or maintaining a loss prevention program, you should consult competent legal counsel to design and implement your own program. No liability is assumed by reason of the services, access or information provided. All services are subject to change without notice.

 

14-02-23030 (05/2018)

Page 2 of 2

 

 

 

 

Chubb Producer Compensation 

Practices & Policies

 

Chubb believes that policyholders should have access to information about Chubb’s practices and policies related that information by accessing following toll-free telephone to the payment of compensation to brokers and independent agents. You can obtain our website at http://www.chubbproducercompensation.com or by calling the number:

 

1-866-512-2862.

 

 

ALL-20887a (09/19)

 

	Trade or Economic Sanctions Notice

 

TRADE OR ECONOMIC SANCTIONS NOTICE

 

This insurance does not apply to the extent that trade or economic sanctions or other laws or regulations prohibit us from providing insurance, including, but not limited to, the payment of claims. All other terms and conditions of the policy remain unchanged.

 

ALL-21101 (09/19)

Page 1 of 1

 

	IMPORTANT NOTICE TO POLICYHOLDERS

 

Social Engineering Tips Please read!

 

HAVE YOU BEEN TRICKED INTO WIRE FRAUD? TAKE IMMEDIATE ACTION!

 

If you believe you have transferred funds to a criminal posing as a legitimate business associate, you should act quickly:

 

1.

Immediately contact the originating bank and request a recall of the wire transfer and confirm that recall in writing.

 

2.

Immediately file a complaint with the FBI at www.ic3.gov. This reporting triggers the FBI’s Recovery Asset Team and the FBI’s assistance seeking return of the wire transfer.

 

3·

Preserve records of the incident, including emails sent and received in their original electronic state. Correspondence and forensic information contained in these electronic files help investigators shed light on the perpetrator(s), and parties responsible for the incident.

 

4.

Once the above steps are complete, contact Chubb per the instructions in your policy.

 

While neither recalling the wire transfer nor reporting to the FBI guarantees the return of your funds, these steps maximize the opportunity to mitigate your loss, assist the FBI in tracing the funds and help establish any insurance claim.

 

Simple Steps to Prevent Fraudulently Induced Wire Transfers

 

Email communication is efficient, but it is not a secure method of communication. Regardless of your familiarity with a contact, that contact’s email may be intercepted, altered and fabricated. You may reduce the chances of fraud by following these best practices:

 

1.

Verify Email Requests by Telephone: Require those responsible for paying invoices or changing bank routing information to verify payment details over the phone, rather than by email or documents sent electronically. Making a phone call to a known, pre-existing telephone number remains the single best protection against fraud.

 

2.

Segregate Wire Transfer Responsibilities: Establish a standing policy that requires at least three people to review and approve wire transfer requests, pay an invoice or change a business partner’s bank account information. Such requests should be entered by the initiator of the wire and verified by two independent signatories.

 

3.

Turn on MFA for Cloud Email: Multifactor Authentication is available from all major email providers. It provides a layer of security to email accounts beyond a user’s account name and password, making it harder for criminals to impersonate you, your executives and your employees.

 

This document is for information only. It is offered as a resource to be used together with your professional insurance advisers in maintaining a loss prevention program. No liability is assumed by reason of the information this document contains.

 

ALL-317454 (03/21)

Page 1 of 1

 

Wisconsin Notice To Policyholders

  

KEEP THIS NOTICE WITH YOUR INSURANCE PAPERS

 

PROBLEMS WITH YOUR INSURANCE? -- If you are having problems with your insurance company or agent, do not hesitate to contact the insurance company or agent to resolve your problem.

 

Chubb  Customer Support Service Department  436 Walnut Street  PO Box1000  Philadelphia, PA 19106-3703  1-800-352-4462

 

You can also contact the OFFICE OF THE COMMISSIONER OF INSURANCE, a state agency which enforces Wisconsin’s insurance laws, and file a complaint. You can contact the OFFICE OF THE COMMISSIONER OF INSURANCE by contacting:

 

Office of the Commissioner of Insurance  Complaints Department  P.O. Box 7873  Madison, WI 53707-7873  1-800-236-8517      608-266-0103

  

ALL-5X51a (2/06) Printed in U.S.A.

 

 

U.S. Treasury Department’s Office Of Foreign Assets Control (“OFAC”) Advisory Notice to Policyholders

 

This Policyholder Notice shall not be construed as part of your policy and no coverage is provided by this Policyholder Notice nor can it be construed to replace any provisions of your policy. You should read your policy and review your Declarations page for complete information on the coverages you are provided.

 

This Notice provides information concerning possible impact on your insurance coverage due to directives issued by OFAC. Please read this Notice carefully.

 

The Office of Foreign Assets Control (OFAC) administers and enforces sanctions policy, based on Presidential declarations of "national emergency". OFAC has identified and listed numerous:

 

•

Foreign agents;

•

Front organizations;

•

Terrorists;

•

Terrorist organizations; and

•

Narcotics traffickers;

 

as “Specially Designated Nationals and Blocked Persons”. This list can be located on the United States Treasury’s web site- http//www.treas.gov/ofac.

 

In accordance with OFAC regulations, if it is determined that you or any other insured, or any person or entity claiming the benefits of this insurance has violated U.S. sanctions law or is a Specially Designated National and Blocked Person, as identified by OFAC, this insurance will be considered a blocked or frozen contract and all provisions of this insurance are immediately subject to OFAC. When an insurance policy is considered to be such a blocked or frozen contract, no payments nor premium refunds may be made without authorization from OFAC. Other limitations on the premiums and payments also apply.

 

PF-17914a (04/16)	Reprinted, in part, with permission of	Page 1 of 1
	ISO Properties, Inc.

 

 

Financial Institution Bond For Fiduciaries of ERISA Plans

 

 

The Company, in consideration of the premium paid, and in reliance on the Application and all other statements made and information furnished to the Company by the Fiduciary, and subject to the Declarations made part of this Bond and to all other terms, conditions, and limitations of this Bond, agrees to pay for:

 

 

I.

INSURING CLAUSE

 

ERISA Fraud or Dishonesty

 

Loss incurred by an Insured Plan resulting directly from Fraud or Dishonesty committed by an Employee acting alone or in collusion with others.

 

 

II.

GENERAL AGREEMENTS

 

1.

Fiduciary As Agent

 

The Fiduciary shall be deemed to be the sole agent of all Insured Plans for all administrative purposes under this Bond, including but not limited to the giving or receiving of any notice or proof required to be given (in accordance with Section 7.a., b., and c. of the Conditions and Limitations of this Bond) and for the purpose of effecting or accepting any amendments to or termination of this Bond.

 

2.

Insured Plan As Sole Beneficiary

 

This Bond shall be for the sole use and benefit of the Insured Plan.

 

All loss and other payments, if any, payable by the Company, shall be payable to the Insured Plan concerned without regard to the Fiduciary’s obligations to other Insured Plans.

 

3.

Representations Made By Fiduciary

 

The Fiduciary represents that all information it has furnished in the Application for this Bond or otherwise is complete, true and correct. Such Application and other information constitute part of this Bond. Any intentional misrepresentation, omission, concealment or incorrect statement of a material fact, in the Application or otherwise, shall be grounds for rescission of this Bond.

 

 

III.

DEFINITIONS

 

As used in this Bond:

 

Employee means any natural person while in the regular service of the Fiduciary in the ordinary course of the Fiduciary’s business, who is required to be bonded by Title 1 of ERISA, and whom the Fiduciary compensates directly by salary or wage and has the right to control and direct in the performance of such service.

 

Employee does not include any agent, broker, factor, commission merchant, independent contractor, intermediary, finder, or other representative of the same general character.

 

Employee Benefit Plan means any pension or welfare benefit plan sponsored by any employer for the benefit of its employees or former employees, and that is subject to ERISA.

 

ERISA means the Employee Retirement Income Security Act of 1974, as amended.

 

Fiduciary means the entity or organization listed under Name of Fiduciary in the Declarations.

 

Fraud or Dishonesty means any intentional act of larceny, theft, embezzlement, forgery, misappropriation, wrongful abstraction, wrongful conversion or willful misapplication, or other intentional fraudulent or dishonest act committed by an Employee in the handling of an Insured Plan’s assets. Fraud or Dishonesty shall also include any intentional act of an Employee in the handling of an Insured Plan’s assets that is prohibited by 18 U.S.C. 1954.

 

PF-52811 (08/21)

Page 1 of 6

 

 

Financial Institution Bond For Fiduciaries of ERISA Plans

 

 

Insured Plan means any Employee Benefit Plan that is submitted by the Fiduciary to, and reviewed and accepted by, the Company prior to the effective date of this Bond.

 

Single Loss means all loss resulting from any act or any series of acts committed by the same Employee or in which the same Employee is concerned or implicated, regardless of the number of Insured Plans involved, and regardless of whether such acts or series of acts were committed during the Bond Period.

 

For the purposes of these definitions, the singular includes the plural and the plural includes the singular, unless otherwise indicated.

 

 

IV.

EXCLUSIONS

 

This Bond does not cover loss resulting directly or indirectly from:

 

a.

the loss or disclosure of confidential information, material or data, while in the care, custody or control of the Fiduciary or any Insured Plan, including but not limited to patents, trade secrets, processing methods, customer lists, financial information, credit card information, health information, retirement or health savings account information, or any similar type of non-public information. This Exclusion a., however, shall not apply when such information, material or data is used to support or facilitate the commission of any act otherwise covered under this Bond; or

 

b.

fees, costs, fines, penalties or any other expenses incurred by the Fiduciary or by any Insured Plan which result, directly or indirectly, from the access to or disclosure of an Insured Plan’s or another entity’s or person’s confidential or personal information, including but not limited to patents, trade secrets, processing methods, customer lists, financial information, credit card information, health information, retirement or health savings account information, or any similar type of non-public information.

 

 

V.

CONDITIONS AND LIMITATIONS

 

1.

Change Or Modification

 

No change in or modification of this Bond shall be effective except when made by written endorsement to this Bond signed by an authorized representative of the Company.

 

2.

Conformity

 

If any time period limitation within this Bond is prohibited by any law controlling this Bond’s construction, such limitation shall be deemed to be amended so as to equal the minimum period of limitation provided by such law.

 

3.

Cooperation Of Fiduciary

 

At the Company’s request and at reasonable times and places designated by the Company, the Fiduciary shall:

 

a.

submit to examination by the Company and subscribe to the same under oath;

 

b.

produce for the Company’s examination all pertinent records; and

 

c.

cooperate with the Company in all matters pertaining to the loss.

 

The Fiduciary shall execute all papers and render all assistance to secure to the Company the rights and causes of action provided for under this Bond. The Fiduciary shall do nothing after discovery of any loss to prejudice such rights or causes of action.

 

PF-52811 (08/21)

Page 2 of 6

 

 

Financial Institution Bond For Fiduciaries of ERISA Plans

 

 

4.

Covered Property

 

This Bond shall apply to loss of money, securities, and other property:

 

a.

owned by any Insured Plan;

 

b.

for which any Insured Plan is legally liable; or

 

c.

held by the Fiduciary in its capacity as a fiduciary to any Insured Plan.

 

5.

Discovery Period

 

This Bond applies only to loss first discovered by the Fiduciary:

 

a.

during the Bond Period; or

 

b.

within one year following the termination of this Bond in its entirety (the “Extended Discovery Period”), provided that:

 

(1)

such loss is sustained prior to such termination; and

 

(2)

the Extended Discovery Period shall terminate immediately upon the effective date of any other insurance obtained for an Insured Plan, which replaces the coverage provided by this Bond for such Insured Plan in an amount no less than the minimum amount required under ERISA and provides coverage for loss sustained prior to its effective date.

 

If prior to the termination of this Bond in its entirety, this Bond is terminated as to any Insured Plan as set forth under Section 10., Termination, the Company shall have no liability for any loss sustained by such Insured Plan unless discovered within one year following such termination as to such Insured Plan.

 

6.

Limit Of Liability - Non-Accumulation Of Liability

 

The payment of any loss under this Bond shall not reduce the Company’s liability for other losses whenever sustained, provided:

 

A.

Single Loss Limit Of Liability For Each Insured Plan

 

The Company’s total liability for any Single Loss incurred by an Insured Plan shall be governed by Item 2 of the Declarations. Such amount for each Insured Plan shall be determined by the funds handled by the Fiduciary during the preceding reporting year. If the Insured Plan has no preceding reporting year, or if the Fiduciary has not handled any Insured Plan assets in the preceding reporting year, then such amount shall be determined by the amount of funds to be handled by the Fiduciary during the current reporting year. Such amount for each Insured Plan shall be submitted to, and reviewed and accepted by, the Company prior to the effective date of the Bond Period;

 

B.

Total Single Loss Limit Of Liability For All Insured Plans

 

The Company’s total liability for each Single Loss incurred by all Insured Plans shall not exceed the amount stated in Item 3 of the Declarations. It shall be the Fiduciary’s responsibility to select a total Limit Of Liability sufficient to meet its bonding requirement pursuant to ERISA for all Insured Plans; and

 

C.

Non-Accumulation Of Liability

 

The Company’s total liability under this Bond with respect to any loss shall not be cumulative in amounts from year to year or from Bond Period to Bond Period.

 

7.

Notice To Company - Proof - Legal Proceedings Against Company

 

a.

The Fiduciary shall give the Company notice at the earliest practicable moment after discovery of a loss.

 

b.

The Fiduciary shall furnish to the Company proof of loss, duly sworn to, with full particulars, within six (6) months after such discovery.

 

PF-52811 (08/21)

Page 3 of 6

 

 

Financial Institution Bond For Fiduciaries of ERISA Plans

 

 

c.

If the Fiduciary fails to give the Company notice or furnish to the Company proof of loss by the expiration of the time period set forth under Sections 7.a and b., the Insured Plans incurring such loss shall have a right to give the Company notice or furnish proof of loss to the Company as provided under Sections 7. a. and b.

 

d.

Legal proceedings for the recovery of any loss under this Bond shall not be brought prior to the expiration of twenty-four (24) months from the discovery of such loss.

 

e.

This Bond affords coverage only in favor of the Fiduciary on behalf of the Insured Plan. No claim, suit, action or legal proceeding shall be brought under the Bond by anyone other than the Fiduciary, except under the circumstances stated in Section 7.C.

 

f.

All such notices shall be given in writing to one of the following addresses:

 

(1)

[email protected]: or

 

(2)

Attn: Chubb Claims Department Chubb

P.O. Box 5122

Scranton, PA 18505

 

g.

All other notices to the Company under this Bond shall be given in writing to one of the following address:

 

(1)

NA.FinancialLines(@)chubb.com: or

 

(2)

Attn: Chubb Underwriting Department Chubb

202B Hall’s Mill Road

Whitehouse Station, NJ 08889

 

All notices described above shall be effective on the date of receipt by the Company.

 

8.

Other Insurance

 

Coverage under this Bond shall apply only as excess over any other valid and collectible insurance, indemnity or suretyship obtained by or on behalf of the Fiduciary, Insured Plan, or any other party at interest in any loss.

 

9.

Subrogation - Assignment - Recovery

 

In the event of a payment under this Bond, the Company shall be subrogated to all of the Insured Plan’s rights of recovery against any person or entity to the extent of such payment. On request, the Insured Plan shall deliver to the Company an assignment of the Insured Plan’s rights, title and interest and causes of action against any person or entity to the extent of such payment.

 

Recoveries, whether effected by the Company or by the Insured Plan, shall be applied net of the expense of such recovery, in the following order:

 

a.

first, to the satisfaction of the Insured Plan’s covered loss which would otherwise have been paid but for the fact that it is in excess of the applicable Single Loss Limit Of Liability set forth in Item 2 or 3 of the Declarations;

 

b.

second, to the Company in satisfaction of amounts paid in settlement of the Insured Plan’s claim; and

 

c.

third, to the Insured Plan in satisfaction of any loss suffered by the Insured Plan which was not covered under this Bond.

 

Recovery from reinsurance or indemnity of the Company shall not be deemed a recovery under this Section.

 

PF-52811 (08/21)

Page 4 of 6

 

 

Financial Institution Bond For Fiduciaries of ERISA Plans

 

 

10.

Termination

 

a.

This Bond terminates as an entirety on the earliest occurrence of any of the following:

 

(1)

ten (10) days after the receipt by the Fiduciary of a written notice from the Company of its decision to cancel this Bond for non-payment of premium;

 

(2)

immediately on the receipt by the Company of a written notice from the Fiduciary of its decision to terminate this Bond;

 

(3)

immediately on the appointment of a trustee, receiver, liquidator or similar official to act on behalf of the Fiduciary, or the taking over of the Fiduciary by state or federal officials;

 

(4)

immediately on the dissolution of the Fiduciary;

 

(5)

immediately on the acquisition of the Fiduciary, or of all or substantially all of its assets, by another entity, or the merger or consolidation of the Fiduciary into or with another entity such that the Fiduciary is not the surviving entity; or

 

(6)

immediately on expiration of the Bond Period.

 

b.

This Bond terminates as to any Insured Plan on the earliest occurrence of any of the following:

 

(1)

immediately on the dissolution of such Insured Plan;

 

(2)

immediately on the acquisition of such Insured Plan, or of all or substantially all of its assets, by another entity, or the merger or consolidation of such Insured Plan into or with another entity such that such Insured Plan is not the surviving entity; or

 

(3)

immediately on the Fiduciary ceasing to be a fiduciary of such Insured Plan.

 

c.

This Bond terminates as to any Employee:

 

(1)

immediately upon any officer of the Fiduciary not acting in collusion with such Employee, discovering that such Employee committed a dishonest or fraudulent act, whether in the employment of the Fiduciary or otherwise, and whether against the Insured Plan or any other person or entity;

 

(2)

for whom coverage under a prior Bond has been terminated, unless such coverage is reinstated in writing; or

 

(3)

twenty (20) days after the receipt by the Fiduciary of a written notice from the Company of its decision to terminate this Bond as to any Employee.

 

Such termination, however, is without prejudice to the loss of any money, securities, or other property then in transit in the custody of such Employee.

 

Termination as to any Employee shall not apply if the dishonest act occurred prior to the employment with the Fiduciary and involved less than $25,000.

 

Termination of this Bond as to any Employee terminates liability for any loss caused by a dishonest or fraudulent act committed by such Employee after the effective date of such termination.

 

11.

Valuation

 

a.

Other Property

 

The value of any loss of property, except as otherwise provided for in this Section 11., shall be the actual cash value or the cost of repairing or replacing such property with property of like quality and value, whichever is less.

 

PF-52811 (08/21)

Page 5 of 6

  

 

Financial Institution Bond For Fiduciaries of ERISA Plans

 

 

b.

Securities

 

The value of any loss of securities shall be the average market value of such securities on the business day immediately preceding discovery of such loss, provided that the value of any securities replaced by the Fiduciary or the Insured Plan, with the consent of the Company and prior to the settlement of any claim for them, shall be the actual market value at the time of replacement. In the case of a loss of interim certificates, warrants, rights or other securities, the production of which is necessary to the exercise of subscription, conversion, redemption or deposit privileges, the value of them shall be the market value of such privileges immediately preceding their expiration if the loss is not discovered until after their expiration. If no market price is quoted for such securities or for such privileges, the value shall be fixed by agreement of the parties.

 

 

VI.

COMPLIANCE WITH APPLICABLE TRADE SANCTION LAWS

 

This Bond does not apply to the extent trade or economic sanctions law or other similar laws or regulations prohibit the Company from providing insurance.

 

PF-52811 (08/21)

Page 6 of 6

 

 

 

 

WISCONSIN AMENDATORY ENDORSEMENT

 

Named Fiduciary  MADISON INVESTMENT HOLDINGS, INC.		Endorsement Number
Bond Number  J06101550	Bond Period            12-15-2024               to         12-15-2025	Effective Date of Endorsement  December 15, 2024
Issued By  Federal Insurance Company

 

 

THIS ENDORSEMENT CHANGES THE BOND. PLEASE READ IT CAREFULLY.

 

This endorsement modifies insurance provided under the following:

 

FINANCIAL INSTITUTION BOND FOR FIDUCIARIES OF ERISA PLANS

 

In consideration of the premium charged, it is agreed that this Bond is amended as follows:

 

1.

Section V. CONDITIONS AND LIMITATIONS is amended as follows:

 

1.

Subsection 7. Notice To Company - Proof - Legal Proceedings Against Company is amended by adding the following:

 

Notice to the agent is the same as giving notice to the Company.

 

2.

Subsection 9. Subrogation - Assignment - Recovery is amended by adding the following:

 

The Company shall be entitled to a recovery only after the Fiduciary has been fully compensated for loss under this Bond.

 

2.

The following Section is added to this Bond:

 

NONRENEWAL

 

If the Company elects not to renew this Bond, the Company will mail or deliver written notice of nonrenewal to the named Fiduciary’s last known address. The Company may elect not to renew for any reason. The notice of nonrenewal will be mailed or delivered at least sixty (60) days before the expiration date of this Bond and will state the reason for nonrenewal.

 

Notice of nonrenewal is not required if (i) the Fiduciary has Fiduciary elsewhere; (ii) the Fiduciary has accepted replacement coverage; (iii) the Fiduciary has requested or agreed to nonrenewal of this Bond; or (iv) this Bond is expressly designated as nonrenewable.

 

Failure to pay the renewal or continuation premium by the premium date will result in nonrenewal of this Bond on the expiration or anniversary date if the Company has provided written notice of the renewal or continuation premium not more than seventy-five (75) days nor less than ten (10) days prior to the due date of the premium and has stated clearly in the notice the effect of nonpayment of premium by the due date.

 

This Bond will be deemed to have been amended to the extent necessary to effect the purposes and intent of this Amendatory Endorsement.

 

The regulatory requirements set forth in this Amendatory Endorsement shall supersede and take precedence over any provisions of this Bond or any endorsement to this Bond, whenever added, that are inconsistent with or contrary to the provisions of this Amendatory Endorsement, unless such Bond or endorsement provisions comply with the applicable insurance laws of the State of Wisconsin.

 

PF-55939 (08/21)

Page 1 of 2

 

 

The title and any headings in this endorsement/rider are solely for convenience and form no part of the terms and conditions of coverage.

 

All other terms, conditions and limitations of this Bond shall remain unchanged.

 

	Authorized Representative

 

PF-55939 (08/21)

Page 2 of 2

 

 

 

AUTOMATIC COVERAGE FOR NEW PLANS ENDORSEMENT

 

Named Assured MADISON INVESTMENT HOLDINGS, INC.		Endorsement Number
Bond Number J06101550	Bond Period 12-15-2024            to           12-15-2025	Effective Date of Endorsement December 15, 2024
Issued By Federal Insurance Company

THIS ENDORSEMENT CHANGES THE BOND. PLEASE READ IT CAREFULLY.

 

This endorsement modifies insurance provided under the following:

 

FINANCIAL INSTITUTION BOND FOR FIDUCIARIES OF ERISA PLANS

 

In consideration of the premium charged, it is agreed this Bond is amended as follows:

 

(1)

Item 3., Total Single Loss Limit Of Liability For All Insured Plans, of the Declarations is deleted and replaced with the following:

 

	Item 3.	(A) Total Single Loss Limit Of Liability For All Insured Plans:	$21,051,147
		(B) Maximum Total Single Loss Limit Of Liability For All Insured Plans:	$23,156,262

 

(2)

The General Agreements are amended to include the following:

 

4.

Automatic Coverage For New Plans

 

If the Fiduciary first becomes a fiduciary for any Employee Benefit Plan during the Bond Period, such Employee Benefit Plan shall become an Insured Plan, effective from the date the Fiduciary first became a fiduciary of such Employee Benefit Plan through the remainder of the Bond Period.

 

The Fiduciary shall notify the Company of such Employee Benefit Plan no later than the end of the Bond Period. Failure to notify the Company of any new Employee Benefit Plan by the end of the Bond Period shall terminate coverage for such Employee Benefit Plan immediately upon expiration of the Bond Period.

 

(3)

Section 6., Limit Of Liability — Non-Accumulation Of Liability, of the Conditions and Limitations is amended by deleting Section 6.B. and replacing with the following:

 

B.

Total Single Loss Limit Of Liability For All Insured Plans

 

The Company’s total liability for each Single Loss incurred by all Insured Plans shall not exceed the amount stated in:

 

	(1)	Item 3. (A) Of the Declarations; or
	(2)	Item 3. (B) of the Declarations if the amount in Item 3.(A) is insufficient due to the addition of new plans as set forth under General Agreement 4.

 

It shall be the Fiduciary’s responsibility to select a total limit of liability sufficient to meet its bonding requirement pursuant to ERISA for all Insured Plans; and

 

PF-52709 (08/21)

Page 1 of 2

 

 

The title and any headings in this endorsement/rider are solely for convenience and form no part of the terms and conditions of coverage.

 

All other terms, conditions and limitations of this Bond shall remain unchanged.

 

	Authorized Representative

 

PF-52709 (08/21)

Page 2 of 2

 

 

 

SCHEDULE OF OTHER FIDUCIARIES ENDORSEMENT

 

Named Assured MADISON INVESTMENT HOLDINGS, INC.		Endorsement Number
Bond Number J06101550	Bond Period 12-15-2024            to           12-15-2025	Effective Date of Endorsement December 15, 2024
Issued By Federal Insurance Company

THIS ENDORSEMENT CHANGES THE BOND. PLEASE READ IT CAREFULLY.

 

This endorsement modifies insurance provided under the following:

FINANCIAL INSTITUTION BOND FOR FIDUCIARIES OF ERISA PLANS

 

In consideration of the premium charged, it is agreed that:

 

(1)

In addition to the Fiduciary listed under Name of Fiduciary in the Declarations, the entity(ies) or organization(s) listed in Paragraph (2) of this Endorsement is/are the other Fiduciary(ies) under this Bond.

 

(2)

Schedule of Other Fiduciaries:

 

MADISON INVESTMENT HOLDINGS, INC. (Formerly Madison Investment Advisors, Inc.) MADISON INVESTMENT ADVISORS, LLC (Formerly Madison Mosaic, LLC) MADISON ASSET MANAGEMENT, LLC

 

The title and any headings in this endorsement/rider are solely for convenience and form no part of the terms and conditions of coverage.

 

All other terms, conditions and limitations of this Bond shall remain unchanged.

 

	Authorized Representative

 

PF-53220 (08/21)

Page 1 of 1

 

 

 

STATE AMENDATORY INCONSISTENCY ENDORSEMENT

 

Named Assured MADISON INVESTMENT HOLDINGS, INC.		Endorsement Number
Bond Number J06101550	Bond Period 12-15-2024            to           12-15-2025	Effective Date of Endorsement December 15, 2024
Issued By Federal Insurance Company

THIS ENDORSEMENT CHANGES THE BOND. PLEASE READ IT CAREFULLY.

 

This endorsement modifies insurance provided under the following:

FINANCIAL INSTITUTION BOND FOR FIDUCIARIES OF ERISA PLANS

 

In consideration of the premium charged, it is agreed that this Bond is amended to include the following:

 

If there is an inconsistency between a state amendatory endorsement attached to this Bond and any other term or condition of this Bond, the Company shall apply, where permitted by law, those terms and conditions either of such state amendatory endorsement or the Bond which are more favorable to the Insured Plan’s(s’) coverage.

 

The title and any headings in this endorsement/rider are solely for convenience and form no part of the terms and conditions of coverage.

 

All other terms, conditions and limitations of this Bond shall remain unchanged.

 

	Authorized Representative

 

PF-54424 (08/21)

Page 1 of 1

 

ATTACHMENTS / EXHIBITS

EX-99.AGMT AND RES

EX-99.LEGAL

EX-99.CALC