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DocuSign Envelope ID: 3FD37DED-3EFC-49BB-BD08-D6EFCA4FEB76 <br /> SECTION V: PUBLIC OFFICIALS LIABILITY COVERAGE <br /> i <br /> The Pool agrees with the Participant in consideration of the payment of the contribution and in reliance <br /> upon the statements in the Application and subject to the limits of liability, exclusions, conditions, and <br /> other terms of this Contract as follows: <br /> A. Public Officials Liability Coverage Agreement <br /> 1. The Pool will pay on behalf of a Covered Person any Damages the Covered Person becomes <br /> legally obligated to pay because of a Public Officials Wrongful Act that occurs during the Contract <br /> Period. <br /> 2. The Pool shall have the right and duty to defend any claim or Suit against a Covered Person <br /> alleging a Public Officials Wrongful Act for which coverage is afforded under Section V(A)(1), <br /> 3, The coverage afforded under Section V(A)(1) shall not apply to punitive damages, attorney's <br /> fees, treble damages, fines, penalties, or multiplied damages. <br /> B. Limited Sexual Misconduct Coverage Agreement <br /> 1. The Pool will pay on behalf of a Covered Person any Damages for Bodily Injury or Personal Injury <br /> the Covered Person becomes legally obligated to pay because of Sexual Misconduct occurring <br /> during the Contract Period, where such Damages were caused by the Covered Person's <br /> negligence in hiring, training or supervision practices. <br /> $ 2. The indemnity coverage afforded under Section V(B)(1) shall not apply: <br /> a. on behalf of a Covered Person who personally commits Sexual Misconduct; <br /> b. on behalf of a Covered Person who remains passive upon gaining any knowledge of Sexual <br /> Misconduct; or <br /> c. to punitive damages, attorney's fees, treble damages, fines, penalties, or multiplied damages. <br /> 3. The Pool shall have the right and duty to defend any claim or Suit against a Covered Person in <br /> which Sexual Misconduct covered under Section V(B)(1) is alleged. In accordance with Section <br /> V(D) (Defense Costs and Expenses), coverage for costs and expenses the Pool incurs in <br /> defending such claims or Suits shall be provided in addition to any applicable limits and/or sub- <br /> limits of liability. <br /> 4, The Pool shall have the right and duty to defend any claim or Suit for which indemnity coverage is <br /> excluded pursuant Section V(B)(2)(a) and/or Section V(B)(2)(b); however, the costs and <br /> expenses the Pool incurs in defending such claims or Suits shall erode any applicable limits <br /> and/or sub-limits of liability. <br /> 5. The coverage afforded under this Section V(B) (Limited Sexual Misconduct Coverage <br /> Agreement) is subject to the following sub-limits of liability: <br /> a. $500,000.00 per person alleging Sexual Misconduct, regardless of the number of claimants, <br /> claims made, incidents involving that person, or the number of Covered Persons involved. <br /> b. $1,000,000.00 aggregate per Contract Period. <br /> NCACC RMP PUBLIC OFFICIALS LIABILITY SECTION Page 1 of 9 <br /> EDITION 7/1/2015 <br />