Page 139 - Binder3

Part Q – Employee Dishonesty

Section 1 – Special Definitions

Person Insured
As stated in the schedule.

Systems of Selection and Control
a) the systems of employee selection utilised to ensure the suitability of employees to hold positions
of trust

b) the systems of security, authorisation, checking, audit and similar procedures utilised for the
purposes of preventing and identifying any act of fraud or dishonesty by any Person Insured

details of which have been supplied in a proposal to us.

Section 2 – The Cover

We will indemnify you in respect of loss of money or other property belonging to you or in your trust
or custody for which you are legally responsible occurring as a direct result of any act of fraud or
dishonesty committed by any Person Insured acting alone or in collusion with others during the period
of insurance.
Provided always that such loss is discovered not more than 24 months following:
a) the termination of the insurance relative to the Person Insured concerned in such loss
b) the termination of employment with you of the Person Insured or the last of the respective Persons
Insured if more than one was concerned with the fraud or dishonesty
c) the termination of this part

whichever happens first.

2.1 Automatic Reinstatement of Limit of Indemnity
Upon discovery of a loss leading to a valid claim under this part the limit of indemnity will be reinstated
by the amount of such loss as subsequently ascertained.
Provided always that:

a) the amount by which the limit of indemnity is reinstated will only apply to acts of fraud or
dishonesty committed subsequent to the date of such reinstatement

b) you will pay any additional premium required by us.

2.2 Bailiffs
Any person, partnership, firm or company or employee of any of them duly appointed or acting for
you under a contract for services as a bailiff for the recovery of sums due to you will be treated as an
employee and when so treated the words fraud and dishonesty will be held to include the bankruptcy,
insolvency or liquidation of the bailiff.

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