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"THIS IS A CLAIMS MADE POLICY - - — PLEASE READ CAREFULLY"
<br />STOCK COMPANY
<br />FORUM INSURANCE COMPANY
<br />PROVIDENCE, RHODE ISLAND
<br />EXECUTIVE OFFICES:
<br />140 S. STATE ST., CHICAGO, ILLINOIS 60603
<br />PUBLIC OFFICIALS LIABILITY POLICY
<br />IN CONSIDERATION of the payment of the premium and subject to all of the terms, conditions and limitations
<br />of this policy, the Forum Insurance Company, hereinafter called the Company, agrees:
<br />I. Insuring Clause:
<br />(a) With the Insureds that if. during the policy period.
<br />any claim or claims are first made against the
<br />Insureds. individually or collectively, for a
<br />Wrongful Act, the Company will pay on behalf of,
<br />in accordance with the terms of this policy, the
<br />Insureds, or any of them, their Executors,
<br />Administrators or Assigns for all loss which the
<br />said Insureds, or any of them, shall become legally
<br />obligated to pay as damages,
<br />(b) With the Public Entity that if, during the policy
<br />period. any claim or claims are first made against
<br />the Insureds. individually or collectively for a
<br />Wrongful Act, the Company will pay on behalf of,
<br />in 'accordance with the terms of this policy, the
<br />Public Entity for all loss for which the Public Entity
<br />may be required or permitted by law to indemnify
<br />such Insureds,
<br />(c) With the Public Entity that if, during the policy
<br />period, any claim or claims are first made against it
<br />as a result of any Wrongful Act, the Company will
<br />pay on behalf of, in accordance with the terms of
<br />this policy, all loss which the Public Entity shall
<br />become legally obligated to pay as damages; and,
<br />as respects I. la), (b), (c), the Company
<br />shall have the right and duty to defend any suit
<br />against the Insured seeking damages on account
<br />of such Wronful Act, even it any of the allegations
<br />of the suit are groundless, false or fraudulent. and
<br />may make Such investigation andsettlement of any
<br />claim or suit as it deems expedient, but the
<br />Company shall not be obligated to pay any claim or
<br />to defend any suit after the limits of the Company's
<br />liability have been exhausted by payment of
<br />claims, judgements, and /or settlements.
<br />II. Extensions:
<br />(a) This policy shall cover loss arising from any claim
<br />first made during the policy period against
<br />the estates, heirs, legal representatives or assigns
<br />of deceased persons, who were Insured at the time
<br />of the Wrongful Act upon which such claims are
<br />based.
<br />(b) If the Company shall cancel or refuse to renew this
<br />policy. the Insureds shall have the right, upon
<br />payment of an additional premium of 25% of the
<br />three year premium hereunder, to an extension of
<br />the coverage granted by this policy in respect of a
<br />MWIC 405
<br />claim or claims which may be first made against
<br />the Insureds during the period of twelve calendar
<br />months after the date of such cancellation or non -
<br />renewal, but only in respect of any Wrongful Act
<br />committed before the date of such cancellation or
<br />non - renewal. Such twelve month period is
<br />hereinafter referred to as "extended discovery
<br />period ". This right of extension shall terminate
<br />unless written notice is given to the Company
<br />within thirty (30) days after the effective date of
<br />cancellation or non - renewal.
<br />III. Definitions:
<br />(a) "Public Entity" shall mean the City, Town, Village,
<br />Governmental Body or Administrative Department
<br />or Agency named and defined in Item A of the
<br />Declarations as legally constituted at the inception
<br />of the policy.
<br />(b) "Insured" shall mean the Public Entity named in
<br />Item A of the Declarations and those persons who
<br />were, now or shall be duly elected or appointed
<br />officials or members or full -time employees of the
<br />governing body of such commissions, boards or
<br />other units operating by and under the jurisdiction
<br />of such governing body and within an ap-
<br />portionment of the total operating budget in-
<br />dicated in the proposal form. "Full -time employee"
<br />shall not include any person hired by the Public
<br />Entity working less than 20 hours per week. "Full-
<br />time employee" shall not include any person
<br />working on a retainer or contractual agreement.
<br />"Insured" shall not include any of the following
<br />boards, commissions, authorities, units or ad-
<br />ministrative departments or agencies unless
<br />specifically endorsed hereon:
<br />I. School; 2. airport; 3. hospital; 4. municipally
<br />owned gas or electric utility.
<br />(c) "Wrongful Act" shall mean any actual or alleged
<br />error or misstatement or act or omission or neglect
<br />or breach of duty including misfeasance,
<br />malfeasance, and non- feasance by the Insureds in
<br />the discharge of their duties with the Public Entity,
<br />individually or collectively, or any matter claimed
<br />against them solely by reason of their being or
<br />having been Insureds.
<br />(d) "Loss" shall mean any amount which the Insureds
<br />are legally obligated to pay, including, but not
<br />limited to, any amounts which the Public Entity
<br />
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