Financial Institutions. Placing clients money too close at hand can open the doors f or criminals.

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1 Financial Institutions Placing clients money too close at hand can open the doors f or criminals.

2 Financial Institutions At Great American Insurance Group, we understand the pressures faced by today s banking and financial institutions. Rapidly changing markets and operations make the industry complex and susceptible to theft, fraud and other crimes. Our team of fidelity and crime experts respond to your unique challenges with flexible, tailored insurance products for the most comprehensive and affordable coverage in the marketplace. We insure and provide claims expertise for all types of financial institutions. Some of our customers include: Commercial Banks Finance Companies Insurance Companies Investment Companies Mutual Funds Mortgage Bankers Savings Banks Small Loan Companies Stock Brokers

3 Customer Service Our experienced professionals are in place to meet your needs and we recognize that close attention to detail and teamwork are essential in providing superior service. The Fidelity & Crime Division s team of underwriters and claims adjusters offer a wide range of services to clients including loss control recommendations, claims information, correspondence and policies that are delivered quickly and accurately. Underwriting Providing customized insurance coverages, we take responsibility for client service and fast, accurate policy issuance. Claims Handling Our experienced claims representatives exclusively handle fidelity and crime losses to ensure claims are paid promptly and fairly. These representatives are also available as a valuable resource to our agents and Insureds for any questions involving loss control. Loss Prevention We have an established relationship with a well respected risk mitigation company. Through this partnership, Insureds learn to identify and minimize risk factors specific to their business. We conduct periodic visits to insured locations in order to stay familiar with the business practices, procedures and employees of our customers.

4 Investment Companies The Investment Company Policy designed by Great American for Registered Management Investment Companies and Mutual Funds exceeds federal requirements. It also provides more extensive coverage than the Financial Institution Standard Form 14 offered by the Surety & Fidelity Association of America (SFAA). Enhancements Include: Telefacsimile Transmission Coverage Uncollectible Items of Deposit Coverage Unauthorized Signatures Coverage Automated Phone Systems Coverage 90-Day Cancellation Stop Payment Legal Liability Coverage Audit Expense Computer Systems Coverage with Voice Initiated Transfer Optional 12-Month Discovery Period in the Event of Termination or Cancellation Each and Every Loss Limit of Liability Coverage for Outside Servicers, including Investment Advisors, Underwriters (distributors), Stock Transfer Agents and Administrators

5 Why Purchase Crime Insurance? Financial Institutions have many obvious exposures to loss, especially the theft of cash. However, they are sometimes surprised by the elaborate schemes of dishonest employees who steal substantial sums without ever handling cash. Great American Insurance Group s risk management team works with banks and other financial institutions to recommend internal and external controls for security, report reconciliation and daily procedures to eliminate or reduce the exposure to such losses. Consider the examples below of actual claims that were covered by financial institutions crime insurance. Two employees in a bank s high value client division stole more than $40,000,000 from customers accounts. Bank employees conspired with an independent appraiser to inflate the value of properties. The loss to the bank was over $17,000,000. A bank experienced an armed robbery during which $218,000 in cash was stolen from the vault. The three robbers allegedly were tipped as to the bank vault opening and closing procedures. The head cashier of a regionally-based financial institution diverted over $600,000 from inactive customer accounts into an account established using a false identity. The bank was obligated to restore their customers accounts. A mutual fund company suffered a $1 million loss when it honored forged instructions to redeem shares from an institutional client s equity fund portfolio. When it was discovered that the signatures on the instructions were forged, the shares were released, and the client s holdings were devalued. A courier for an insurance company was robbed of $750,000 in money and securities while transporting it to the company s depository institution. The thieves were never apprehended.

6 Financial Institution Coverage We consider banking institutions with assets greater than $100 million. The total number of employees must be greater than 15 (for other than Investment Companies). Comprehensive coverage is offered through standard industry forms tailored to meet the needs of our customers. Special coverage enhancements may be offered. Please refer to the actual policy for complete details of coverage.

7 About Great American Great American Insurance Group s roots go back to 1872 with the founding of lead insurer Great American Insurance Company. Great American Insurance Group insurers are owned by American Financial Group, Inc. whose securities are traded on the NYSE and NASDAQ under the symbol AFG. Great American Insurance Company, flagship company of Great American Insurance Group, has been continuously rated A (Excellent) or higher by A.M. Best since 1908 (as of December 17, 2007). The Fidelity & Crime Division benefits from the Group s centralized investment, actuarial and financial expertise, while retaining the flexibility and autonomy to respond to special and local market conditions. We provide effective solutions to protect the assets of our Insureds. Fidelity & Crime coverage is also provided for the following: Mer cantile Establishments Gover nmental Entities Investment Companies Non-Pr ofit Organizations Armor ed Car/Valuables Kidnap, Ransom & Extortion Gaming Establishments At Great American Insurance Group, we understand certain specialized businesses require precise, comprehensive insurance products tailored to their unique needs. Our team of experienced underwriters, claims managers and loss control engineers have worked to design policies that match the demands of these industries. Coverage is customized with special enhancements and endorsements so every client receives the most comprehensive, affordable coverage available in the marketplace.

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9 Great American Insurance Group, 301 E Fourth Street, Cincinnati, OH Coverage features described in this brochure are summarized. Refer to the actual policy for a full description of applicable terms, conditions, limits and exclusions. Coverage is underwritten by Great American Insurance Company and Great American Insurance Group. The underwriting insurers are authorized in the fifty states and the District of Columbia. Great American Insurance Company is the owner of the following registered service marks: the Great American Insurance eagle logo, and the word marks Great American and Great American Insurance Group Great American Insurance Company. All rights reserved. GAIC (3/11)