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END #: 069 (06/20/2017)FFEE(REwSH)
<br />Financial Fraud Exclusionary Endorsement
<br />(Real Estate with Safe Harbor)
<br />This Endorsement, effective 12:01 A.M. on May 1, 2023 forms a part of Policy No. 0022032-LPL-20
<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 />DocuSign Envelope ID: 50217A3D-41A4-496E-8E73-4D3ACA19B606
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