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DocuSign Envelope ID: B9CF70F3-EB57-4815-81 BF-55CF8DC60426
<br /> LA TYERS LIABILITY INSURANCE ,[,�[1VV(Est[,n RtrkvvL Id',Spite 00 r11;1.l,7:WIM
<br /> / (arn. North( iioliim?7 11 1 8f1[l.lrfr1.88.13 n oil rki
<br /> COMPANY OF '1Pi-677.11041 ..
<br /> MUTUAL NORTH C�AROLINA i'�� [1i�iit 13�:� t��?1
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<br /> Financial Fraud Exclusionary Endorsement
<br /> (Real Estate with Safe Harbor)
<br /> This Endorsement, effective 12:01 A.M. on May 18, 2019 forms a part of Policy No. 31219-LPL-08
<br /> (the"Policy") issued by LAWYERS MUTUAL LIABILITY INSURANCE COMPANY OF NORTH CAROLINA.
<br /> It is hereby understood and agreed that as a condition of the issuance of this Policy, the
<br /> EXCLUSIONS AND LIMITED WAIVER 1. Exclusions, section of the Policy is hereby amended to add
<br /> this Specific Acts Exclusion. All Policy provisions, terms, and conditions, except as expressly
<br /> provided otherwise in this endorsement, remain in full force and effect.
<br /> Irrespective of whether the act(s)or omissions)alleged in support of a claim, suit, or theory of
<br /> liability presented in a suit, would fall within INSURING AGREEMENT, 1.Coverage-Attorney, 11.
<br /> Coverage-Fiduciary or Ill.Coverage-Arbitrator& Mediator, this Policy does not afford to any
<br /> Insured any coverage or benefits whatsoever, including, but not limited to, any right to any defense,
<br /> with respect to:
<br /> any claim, or any theory of liability asserted in a suit, based in whole or in any part upon any
<br /> act(s)or omission(s) of any Insured arising out of, related to, or on account of the loss,
<br /> misappropriation, or attempted misappropriation of funds, through any dishonest, deceitful, or
<br /> fraudulent scheme or means, including but not limited to written, electronic, telegraphic, cable,
<br /> teletype, facsimile, or telephone communications or access to, use of, or change to any
<br /> software, application, data, or information within any computer, server, electronic device, or
<br /> electronic account of an insured. This exclusion applies regardless of whether any other act(s)
<br /> or omission(s) contributed concurrently or in any sequence to the loss, misappropriation, or
<br /> attempted misappropriation of funds.This exclusionary endorsement shall apply only to funds
<br /> directly or indirectly connected with or related to any purchase, sale, financing, or refinancing
<br /> of real estate.
<br /> Provided, however, that this endorsement shall not apply to the loss, misappropriation or
<br /> attempted misappropriation of funds (1) wired or electronically transmitted by or on behalf of a
<br /> client if any Insured had previously obtained the client's written agreement to terms of
<br /> engagement applicable to the representation that identified a specific IOLTA Trust Account as
<br /> the only bank account to be used, and that warned the client substantially as follows: "BEFORE
<br /> SENDING ANY WIRE, CALL OUR OFFICE TO VERIFY THE INSTRUCTIONS. WE WILL NOT
<br /> CHANGE WIRING INSTRUCTIONS. IF YOU RECEIVE WIRING INSTRUCTIONS FOR A
<br /> DIFFERENT BANK, BRANCH LOCATION, ACCOUNT NAME OR ACCOUNT NUMBER,THEY
<br /> SHOULD BE PRESUMED TO BE FRAUDULENT. DO NOT SEND ANY FUNDS AND CONTACT
<br /> ❑UR OFFICE IMMEDIATELY. FAILURE TO FOLLOW THIS PROCEDURE ENDANGERS YOUR
<br /> FUNDS,"or(2)disbursed by or on behalf of any Insured in accordance with a written, original,
<br /> notarized disbursement instruction authorizing the wiring or electronic transmission of the funds.
<br /> e
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<br /> END 0:069 (06120/2017) FFEE(REwSH)
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