1625 BROADWAY 2016-01-01 MF Import

' . : • � ZURICH THIS I��IPC�RTANT DISCLOSUR� NOTIC� IS PART OF YOUR BOND Vl'e are mal:ing the Collowing infortnational disclosures in compliance with Thc Terrorism Risk Insurance Act of 2002. No action is requircd on your part. Disclosure nf Tcrrorism Premiimi The premium charge for risk of loss resulting from acts of tcaorism (as defined in the Act) under this bond is S_waived_. This amount is reflected in die total premium for this bond. Disclosurc of Av:�ilabilih� of Covcraac for Tcrrorism Losscs As required by Ure Terrorism Risk Insurance Act of''.002, we have made available to you coverage for losscs resulting from acts of terrorism (as defined in the Act) with terms, amounts, and limitations tlmt do not diffcr matcrially as those for losses arising from events oAier dian acts of terrorism. Disclosurc of�edcral Share of Insurancc Comn:�nv's Tcrrorism Losses The 7'errorism Risk Insurance Act of 2002 establishes a mecha�usm by which the United States govemment ��ill share in insurance company losses resulting Gom acts of temorism (as defined in thc Act) after a insurance company has paid losses in excess of an annual aggrebate deductible. For 2002, the insurance canpany dcductible is 1°0 of direct eamed premium in tlie priur year; for 2003, 790 oCdirect eamcd premium in the prior year, for 2004, 10% of direct eamed premium in the prior yr.v; and For 2005, 1546 of direct eamed premium in the prior yeae The federal share of an iitsurance company's losscs �bove its deductible is 90%. In the event thc L'nited States govcrnment participates in losses, the United Statcs govemment may direct insurance companics to collect a terrorism surch:v�e Gom policyhulders. The Act docs not currently provide Cor insurance industry or United States government particip�tion in tcrrorism losses Uiat excced$100 billion in any one calendar year. Dcfinition of Act af Tcrrorism The Terrorism Risk Insurance Act defines "act of teRorism" as any act that is certified by tl�e Secretary oC the Treasury, in concurrence with the Secretary oC State and thc Attorney General of the United Statcs: l. to be an act of terrorism; 2. to be a violent act or an act that is dangerous to human lifc, property or infrastructure; 3. to have resulted in damage widiin the United Statcs, or outside of the United States in the case of an air carrier(as defined in section 40IO2 of tide 49, United 17 Stntes Code) or a United States flag vessel (or a vessel based principally in the United States, on which United States income tax is paid and whose insurance covemge is subject to regulation in the United States), or the premises of a United States mission; and 4. to have been committed by an individual or individuals acting on behalf of:uiy foreign person or ioreign interest as part of an effort to coerce the civilian population of tlie Uiuted States or to intluence die policy or affect the conduct of the United States Govecmnent by coercion. But, no act shall be certified by the Secretary as an act of terrorism if die act is committed as part of the course of a u�ar declared by Cona ess (escept for�eorkers' compensation) or property and casualty insurance losses rcsultin� from the act, in the agb e;ate, do not exceed S5,000,000. Thesc disclnsures are iufarmationai only and do not modify your bond or affect your rights u�der the bond. Copyright Zuricl�American Insurancc Comp;u�y?003 �/ S(6 -00�0'49.doc