ID Theft Insurance

IDENTITY THEFT OR IDENTITY FRAUD EXPENSES COVERAGE

1. “Identity theft or identity fraud” means the act of knowingly using or transferring without legal authority personal identifying information of an “insured” such as name, social security number, driver’s license number, bank account number(s) or credit card number(s) with the intent to commit, or to aid or abet another to commit, any illegal activity that constitutes a felony under any applicable state or local law or violation of federal law.

2. “Expenses” means:

• a. Costs of executing affidavits or similar documents attesting to theft or fraud required by credit grantors, credit agencies or similar financial institutions.
• b. Costs for certified mail to credit grantors, credit agencies, or similar financial institutions and law enforcement agencies.
• c. Lost income resulting from time taken off work to complete theft or fraud affidavits, talk to or meet with credit grantors, credit agencies or similar financial institutions, law enforcement agencies and or legal counsel, up to a maximum of $250 per day. Total payment for lost income is not to exceed $5,000.
• d. Loan application fees for re-applying for a loan or loans where the original application is rejected solely because the lender received incorrect credit information.
• e. Reasonable attorney fees incurred by “you” as a result of “identity theft or identity fraud” to:

1. Defend lawsuits brought against an “insured” by financial institutions, merchants, or collection agencies;
2. Remove any civil or criminal judgments wrongly entered against an “insured”; and
3. Challenge the completeness or accuracy of any information in a consumer credit report.

• f. Charges incurred for long distance telephone calls to law enforcement agencies, merchants, credit grantors, credit agencies or similar financial institutions to report or discuss an actual “identity theft or identity fraud”.

The following additional coverage is added under:

IDENTITY THEFT OR IDENTITY FRAUD EXPENSES

Any act or series of acts committed by one or more persons, or in which such person or persons are aiding or abetting others against an “insured”, is considered to be one “identity theft or identity fraud”, even if a series of acts continues into a subsequent policy period.

• “Identity theft or identity fraud” must occur while this coverage is part of “your” policy; and
• “Identity theft or identity fraud” expenses must be incurred while this coverage is part of “your” policy or within 180 days after this coverage is terminated.

If this coverage is terminated, “our” total liability for “expenses” incurred by “you” during the 180 days after the termination will not exceed the amount equaling the difference between the limit
at the time coverage terminated and the amount “we” already reimbursed “you” during that policy period.

“We” may offer, at “our” option, to refer “you” to a firm that:

• “you” can authorize to work on “your” behalf to assist “you” in reporting and addressing the effects of “identity theft or identity fraud” to which coverage applies;
• will consult with “you” on measures “you” might take if “you” reasonably suspect that “you” have already become, or may become a victim of “identity theft or identity fraud” to which this coverage applies; or
• if “we” do provide “you” with such a referral, “we” will pay, subject to the terms of the referral “we” provide, that firm’s charges for the work they perform consistent to the terms of “our” referral, and those charges will not be subject to the limits for “identity theft or identity fraud” coverage.

“We” will pay up to $25,000 for “expenses” incurred by an “insured” as the direct result of any single “identity theft or identity fraud” first discovered or learned of during the policy period. “Our” total liability for Identity Theft or Identity Fraud Expenses Coverage “you” incur during the policy period will not exceed this limit regardless of the number of instances or when they occurred, or the number of persons making a claim for “identity theft or identity fraud”.

This coverage is additional insurance. No deductible applies to Identity Theft or Identity Fraud Expenses Coverage.

EXCLUSIONS

The following additional exclusions apply to this coverage:

“We” do not cover:

• “Expenses” arising out of the business pursuits of any “insured”.
• Expenses” incurred due to any fraudulent, dishonest or criminal act by an “insured” or any person acting in collusion with an “insured”, or by any authorized representative of an “insured”,
  whether acting alone or in collusion with others.
• Loss other than “expenses”.
• Loss insured under the Credit Card, Electronic Fund Transfer Card, Access Device and Forgery Coverage, under Section I of the policy.