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DocuSign Envelope ID:OC3729C3-3733-4656-937D-84lCO8CE1341
<br /> III LAWYERS LIABILITY INSURANCE 1001 Winstead Drive,Suite 285 1 Cary, North Carolina 27513
<br /> COMPANY OF Post Office Box 1929 I Cary, North Carolina 2 751 2-1 929
<br /> MUTUALNORTH CAROLINA 919.677.8900 1800.662.8843 1 www.lawyersmutuainc.com
<br /> Financial Fraud Exclusionary Endorsement
<br /> (Real Estate with Safe Harbor)
<br /> This Endorsement, effective 12:01 A.M. on May 16, 2021 forms a part of Policy No. 32638-LPL-06
<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 I. 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 omission(s) alleged in support of a claim, suit, or theory of
<br /> liability presented in a suit, would fall within INSURING AGREEMENT, I. Coverage-Attorney, II.
<br /> Coverage- Fiduciary or III. 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 /> OUR 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 /> A uthuriwd Agait
<br /> END #: 069 (06/20/2017) FFEE(REwSH)
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