Self-Insured Retention Program

Home , Terrorism insurance

Issuing Company: Argonaut Insurance Company

Liability Insurance Proposal for: City of Stillwater, OK

Liability - $2,000,000 xs $250,000 SIR Each Occurrence / Wrongful Act / Accident MISCELLANEOUS PROPOSAL INFORMATION

Effective Date: July 1, 2021 – July 1, 2022

Proposal Prepared for: USI Southwest Dallas, TX 75254

Attention: Ray Butler Client Executive – USI Southwest

Underwriter: Tonya McPherson Sr. Regional Underwriter 45 Nod Road Avon, CT 06001 E-mail: [email protected]

Proposal Date: June 9, 2021

This quotation is valid until Wednesday, June 30, 2021

2 GENERAL CONDITIONS

• This quotation represents the Company’s proposed terms and conditions, which may not include all of the requested terms and conditions. No warranty is made or implied with respect to the total compliance to bid specifications or applications.

• Flat Annual Premium – non-auditable

• Notice of cancellation - 90 days; 10 days for non-payment; in compliance with state law.

• For liability, if more than one coverage part applies to the same occurrence or claim, the highest applicable limit and lowest retained limit apply.

• Separate Limits apply to Auto Liability, General Liability, Law Enforcement, Public Officials Liability, and Employment Practices Liability.

• TERRORISM – This quote includes coverage for TRIPRA (Terrorism Risk Insurance Program Reauthorization Act of 2019) legislation. The insured has the option to reject this terrorism coverage. If the insured rejects the coverage, a terrorism exclusion form must be completed and signed by the insured in order to do so. If the form is not returned to us upon the binding of coverage, the terrorism premium will be automatically included.

3 STANDARD POLICY EXCLUSIONS:

Specifically excluded exposures include, but are not limited to the following:

Asbestos, Lead, Silica or Silica-Related Dust, Nuclear Energy Liability, Pollution, Fungi/Bacteria, Electromagnetic Radiation, Communicable Disease, Virus or Bacteria, War and Military Action, Nuclear Device GENERAL: Detonation, Nuclear Hazard, Pathogenic or Poisonous Biological or Chemical Materials, Cyber Injury, Electronic Data, and Confidential or Personal Information

AUTO Exclusions as stated on the Auto coverage form including racing, LIABILITY: Personal Injury Protection

All exclusions as stated on the GL coverage form and endorsements including but not limited to: Aircraft, Eminent Domain/Inverse Condemnation, GL: Underground Storage Tanks, Employer’s Liability, Land Subsidence PD, Unmanned Aircraft

Exclusions as stated on the Law Enforcement Coverage Form including Care, Custody, and Control (not applicable to property on persons at time of arrest), LEL: Injury to Auxiliary or Volunteer Officers, and Prior or Pending Legal Action or Litigation, Unmanned Aircraft

All exclusions as stated on the Public Officials Liability Coverage Form and endorsements including but not limited to: Contractual Liability, Distribution of POL: Information, Eminent Domain/Inverse Condemnation, Employment Practices, Fiduciary, Labor Disputes, Law Enforcement, Non-Monetary Relief

All exclusions as stated on the Employment Practices Liability Coverage Form EPL: and endorsements including but not limited to: Failure to Maintain Insurance,

Violation of Laws, Non-Monetary Relief (exception for defense)

Specific specimen exclusionary language will be provided upon request.

4 LIMITS AND RETENTIONS FOR BUSINESS COVERED

BUSINESS SPECIFIC AGGREGATE UNDERLYING COVERAGE RETRO COVERED LIMIT LIMIT RETENTION TRIGGER DATE

AUTOMOBILE $2,000,000 N/A $250,000 SIR Per Accident N/A LIABILITY • Pollution Clean Up and Removal as provided on the Coverage Form • Covered Autos includes owned, leased, rented, non-owned and borrowed autos and autos commandeered in emergency situations • Waiver of Subrogation as provided under the Coverage Form • Fellow Employee • Out-Of-State Coverage Extensions • Non-Owned and Hired Auto Liability AUTO UM/UIM $1,000,000 CSL $250,000 Per Accident N/A GENERAL $2,000,000 $2,000,000 $250,000 SIR Per N/A LIABILITY Occurrence • Personal and Advertising Injury: $2,000,000 Occurrence Limit (Subject to GL Aggregate Limit) • Products/Completed Operations: $2,000,000 Occurrence Limit / $2,000,000 Aggregate Limit • Employee Benefits Liability is included • Sexual Abuse or Molestation Occurrence Liability Sub-Limited Coverage: $250,000 Occurrence Limit / $250,000 Aggregate Limit • Blanket Additional Insured (AG-GL-RL E-002 (06-11) • Insured Contracts are covered as defined • Limited Liquor Liability as provided in coverage form • Limited Failure to Supply as provided in coverage form • Health Care Services are covered for your licensed nurse, psychologist, physical therapist, hearing, language or speech therapist, EMT, paramedic, or athletic trainer • Broadcasting, Publishing, Telecasting offenses as covered under Personal Injury • Watercraft less than 51 feet in length and 100 horsepower or less • Pollution Exceptions for: Hostile Fire, Emergency Operations, Heating/Air Conditioning, Mobile Equipment, Road Treatment Chemicals, Pesticides/Herbicides, Water Treatment, Above Ground Tanks, Water/Sewage Operations • Cemetery Professional Liability (AG-GL-RL E-003 (06-10) • Watercraft Endorsement (AG-GL-RL E-019 (06-10) – 2000 Crestliner 1750 Sportfish Boat • Waiver of Transfer of Rights of Recovery Against Others To Us (RLE135-0416) • Exclusion – Subsidence (GLSUB 05-17) • Unmanned Aircraft Coverage (CG2450CW-0417) • Damage To Premises Rented to You (RLE142-0416): $100,000 Any One Premises • Schedule of Dam, Dike, Levee or Reservoir (AG-GL-RL E-026(06-11) – 3 Dams

5 LAW $2,000,000 $2,000,000 $250,000 SIR Per N/A ENFORCEMENT Occurrence LIABILITY • Care, Custody, Control covered for property on persons at time of arrest • Liability assumed in a Mutual Aid Agreement • Pollution coverage exception for Law Enforcement Activities • Animal Mortality up to $10,000 per occurrence annually • Unmanned Aircraft (CG2450CWLEL-0417) PUBLIC $2,000,000 $2,000,000 $250,000 SIR Claims-Made 11/01/1997 OFFICIALS LIABILITY • Coverage Extensions (not subject to Retained Limit): o Identity Theft Expense - $5,000 o Key Individual Replacement - $25,000 o Emergency Travel Reimbursement - $5,000

EMPLOYMENT $2,000,000 $2,000,000 $250,000 SIR Claims-Made 11/01/1997 PRACTICES LIABILITY

6 PROPOSAL FEATURES

MAJOR POLICY FORMS: Argonaut Insurance Company – Admitted Paper

TREATMENT OF ALAE: UNDERLYING RETENTION: Inside INSURER’S SPECIFIC LIMIT: Outside

PREMIUM: $155,353 including Terrorism $153,048 excluding Terrorism

FEES & SURCHARGES: N/A

COMMISSION: 0% (Net)

CLAIMS ADMINISTRATION: Claims are Self-Administered by the City of Stillwater (Any changes to the claims administration process must be approved by Trident Claims)

SPECIFIC ADDITIONAL CONDITIONS

REQUIRED AT THE TIME OF BINDING: • Completed, signed and dated “Request to Bind Insurance Coverage” form • Billing Selection (see attached “Bill It Now” flyer)

7 RISK CONTROL SERVICES

Risk Management Consultation Send us a risk management question through our Ask-The-Risk Manager Portal on our website or emailing us directly at [email protected]. Our 24-Hour pledge to you is to provide you help within one business day.

Risk Control Program Assessments The Risk Control team will provide surveys and assessments as needed to determine where you may need assistance based on your loss drivers. We can help to develop and implement best practices that fit your specific needs.

Risk Control Newsletters and Online Resources Trident Risk Control produces monthly newsletters with topics of interest and emerging trends for the many diverse departments at your organization. Subscribe on our website and pass on to others or supply us with a list of employee emails for distribution.

Our online resource library is targeted towards our most common loss drivers as well as emerging trends in the public sector. The resources include, sample best practices, whitepapers, inspection checklist and guides.

Model Law Enforcement and Detention Center Policies and Procedures Trident partners with world-class law enforcement consultant OSS Law Enforcement Advisors to provide free model policies for use by law enforcement and detention center representatives.

Trident University Trident Risk Control Services has over 200 training courses available online to help you meet that need. Our partner, LocalGovU, has worked with us to develop topics specifically for governmental entities.

Trident Risk Control Website Trident Risk Control offers an easy-to-navigate, fully searchable website with an array of resources.

Visit the Trident Risk Control website at: Trident Public Risk :: Paragon Insurance Holdings

8 REQUEST TO BIND INSURANCE COVERAGE

In accordance with the insurance proposal,

City of Stillwater, OK

has accepted coverage with Argonaut Insurance Company

Policy Effective:

July 1, 2021 to July 1, 2022

COVERAGE

GENERAL LIABILITY (INCLUDES EMPLOYEE BENEFITS LIABILITY)

PUBLIC OFFICIALS LIABILTY

EMPLOYMENT PRACTICES LIABILITY

AUTOMOBILE LIABILITY

UNINSURED/UNDERINSURED MOTORIST

LAW ENFORCEMENT LIABILITY

TERRORISM (optional) Yes No Please check ‘Yes’ or ‘No’ for the terrorism coverage

Agent’s Signature Date

Client’s Signature Date

9 POLICYHOLDER DISCLOSURE NOTICE OF TERRORISM INSURANCE COVERAGE

You are hereby notified that under the Terrorism Risk Insurance Act, as amended, you have a right to purchase insurance coverage for losses resulting from acts of terrorism. As defined in Section 102(1) of the Act: The term “act of terrorism” means any act or acts that are certified by the Secretary of the Treasury - in consultation with the Secretary of Homeland Security, and the Attorney General of the United States - to be an act of terrorism; to be a violent act or an act that is dangerous to human life, property, or infrastructure; to have resulted in damage within the United States, or outside the United States in the case of certain air carriers or vessels or the premises of a United States mission; and to have been committed by an individual or individuals as part of an effort to coerce the civilian population of the United States or to influence the policy or affect the conduct of the United States Government by coercion.

YOU SHOULD KNOW THAT WHERE COVERAGE IS PROVIDED BY THIS POLICY FOR LOSSES RESULTING FROM CERTIFIED ACTS OF TERRORISM, SUCH LOSSES MAY BE PARTIALLY REIMBURSED BY THE UNITED STATES GOVERNMENT UNDER A FORMULA ESTABLISHED BY FEDERAL LAW. HOWEVER, YOUR POLICY MAY CONTAIN OTHER EXCLUSIONS WHICH MIGHT AFFECT YOUR COVERAGE, SUCH AS AN EXCLUSION FOR NUCLEAR EVENTS. UNDER THE FORMULA, THE UNITED STATES GOVERNMENT GENERALLY REIMBURSES 80% OF COVERED TERRORISM LOSSES EXCEEDING THE STATUTORILY ESTABLISHED DEDUCTIBLE PAID BY THE INSURANCE COMPANY PROVIDING THE COVERAGE. THE PREMIUM CHARGED FOR THIS COVERAGE IS PROVIDED BELOW AND DOES NOT INCLUDE ANY CHARGES FOR THE PORTION OF LOSS COVERED BY THE FEDERAL GOVERNMENT UNDER THE ACT.

YOU SHOULD ALSO KNOW THAT THE TERRORISM RISK INSURANCE ACT, AS AMENDED, CONTAINS A $100 BILLION CAP THAT LIMITS U.S. GOVERNMENT REIMBURSEMENT AS WELL AS INSURERS’ LIABILITY FOR LOSSES RESULTING FROM CERTIFIED ACTS OF TERRORISM WHEN THE AMOUNT OF SUCH LOSSES IN ANY ONE CALENDAR YEAR EXCEEDS $100 BILLION. IF THE AGGREGATE INSURED LOSSES FOR ALL INSURERS EXCEED $100 BILLION, YOUR COVERAGE MAY BE REDUCED.

The prospective premium for certified acts of terrorism coverage is $2,305

Please tell your insurance agent or broker whether you accept or reject certified acts of terrorism coverage.

TRIANotice-0920 Includes copyrighted material with permission from Page 1 of 1 the National Association of Insurance Commissioners. QUOTATION

NAMED INSURED: City of Stillwater Page 1 of 10

POLICY NUMBER: To Be Advised

MAILING ADDRESS OF INSURED: 723 S. Lewis Street, Stillwater OK. 74074

DESCRIPTION AND LOCATION OF PROPERTY INSURED: Real Estate- Municipality

VALUES: Total Insured Value: $112,130,515

TERRITORY: United States of America

POLICY TERM: Effective: 7/1/2021 at 12:01 AM Expiration: 7/1/2022 at 12:01 AM.

FORM: PR 001, PR 002, PR 003, PR 004 and accompanying Endorsements as specified

COVERAGE: All Risks of direct physical loss or damage, covering Property Damage, Business Interruption, Extra Expense and Boiler & Machinery.

POLICY LIMIT OF LIABILITY: $100,000,000 any one occurrence excess of Policy deductibles

STARR SPECIALTY PARTICIPATION: 100%

VALUATION: This Company’s liability for loss under this policy for real and personal property (excluding stock) shall not exceed the smallest of the following amounts:

1. The amount of the policy applicable to the damaged or destroyed property;

2. The REPLACEMENT COST of the property or any part thereof, with identical property or with like, kind and quality of such property on the same premises and intended for the same occupancy and use; or;

3. The amount actually and necessarily expended in repairing or replacing said property, or any part thereof.

4. ACTUAL CASH VALUE if the property is not repaired or replaced within 2 years. a. FINISHED STOCK sold but not delivered, at the Insured's net selling price of such property less all discounts and unincurred expenses to which such property would have been subject had no loss occurred. FINISHED STOCK not sold at REPLACEMENT COST. QUOTATION

NAMED INSURED: City of Stillwater Page 2 of 10

b. RAW STOCK and STOCK IN PROCESS, at REPLACEMENT COST with like kind and quality.

c. TIME ELEMENT: Actual Loss Sustained.

SUBLIMITS: Sublimits are per occurrence unless shown otherwise. The following sublimits are part of and not in addition to the Policy Limit of Liability Sublimits are 100% and are subject to Starr Specialty percentage participation.

EARTH MOVEMENT $5,000,000 PER OCCURRENCE AND IN THE ANNUAL AGGREGATE, EXCEPT: EARTH MOVEMENT in the State of Alaska, California or Hawaii NOT COVERED PER OCCURRENCE AND IN THE ANNUAL AGGREGATE, EXCEPT:

EARTH MOVEMENT in the PACIFIC NORTHWEST Seismic Zones (per Appendices A and B) NOT COVERED PER OCCURRENCE AND IN THE ANNUAL AGGREGATE, EXCEPT: The maximum payable for ALL EARTH MOVEMENT losses in any one Policy term shall in no event exceed: $5,000,000

FLOOD NOT COVERED PER OCCURRENCE AND IN THE ANNUAL AGGREGATE, EXCEPT: FLOOD (Including Storm Surge) for any LOCATION Wholly or partially situated within an area defined as a Flood Zone A, A1-A30, AE, AH, AO, AR, A99, AOVEL Or V, V1-V30 and VE as designated by the Federal Emergency Management Agency (FEMA) In published FLOOD Hazard Base Maps Or Flood Insurance Rate Maps NOT COVERED PER OCCURRENCE AND IN THE ANNUAL AGGREGATE, EXCEPT:

The maximum payable for all FLOOD (Including Storm Surge) losses in any One policy term shall in no event exceed: NOT COVERED QUOTATION

NAMED INSURED: City of Stillwater Page 3 of 10

SUBLIMITS(Continued) ACCOUNTS RECEIVABLE: $1,000,000 COURSE OF CONSTRUCTION: $500,000 DEBRIS REMOVAL: THE GREATER OF 25% OF ADJUSTED DIRECT PROPERTY LOSS OR $2,500,000 ELECTRONIC DATA PROCESSING: $250,000 EXTRA EXPENSE: $500,000 FINE ARTS: $100,000 FIRE AND POLICE DEPARTMENT SERVICE CHARGES: $25,000 DEMOLITION AND INCREASED COST OF $1,000,000 EXCEPT: CONSTRUCTION,

DEMOLITION AND INCREASED COST OF CONSTRUCTION, (UNDAMAGED PORTION): INCLUDED LEASEHOLD INTEREST: $250,000 LEASED OR RENTED EQUIPMENT: $50,000 MOBILE EQUIPMENT: $50,000 ($10,000 max per item) MISCELLANEOUS UNNAMED LOCATIONS: $50,000 NEWLY ACQUIRED LOCATIONS: $1,000,000 POLLUTION AND CONTAMINATION CLEAN UP: $50,000 PER OCCURRENCE AND IN THE ANNUAL AGGREGATE PROTECTION AND PRESERVATION OF PROPERTY $50,000

TEMPORARY REMOVAL OF PROPERTY: $50,000 OFF PREMISES POWER: NO COVERAGE SIGNS: $50,000 SPOILAGE: $100,000 TRANSIT: $50,000 TREES AND SHRUBS: $25,000 (NOT TO EXCEED $ 1,000 PER TREE OR SHRUB) VALUABLE PAPERS AND RECORDS: $500,000 VEHICLES: NO COVERAGE WIND: EXCLUDED

SUBLIMITS APPLICABLE TO INSURED LOCATIONS THAT ARE VACANT AT TIME OF LOSS: QUOTATION

NAMED INSURED: City of Stillwater Page 4 of 10

VANDALISM AND MALICIOUS MISCHIEF: $250,000 WATER DAMAGE: $250,000 THEFT: $250,000

BOILER AND MACHINERY: INCLUDED IN POLICY LIMIT OF LIABILITY ANY ONE ACCIDENT

The following sublimits are part of and not in addition to the Boiler and Machinery Sublimit:

AMMONIA CONTAMINATION: $100,000 ANY ONE ACCIDENT CONSEQUENTIAL DAMAGE: $100,000 ANY ONE ACCIDENT EXPEDITING EXPENSES: $100,000 ANY ONE ACCIDENT HAZARDOUS SUBSTANCES: $100,000 ANY ONE ACCIDENT WATER DAMAGE: $100,000 ANY ONE ACCIDENT

TIME LIMITS:

NO COVERAGE IS PROVIDED BY THIS POLICY BEYOND THE CORRESPONDING TIME LIMIT SPECIFIED BELOW:

CIVIL AND MILITARY AUTHORITY 14 CONSECUTIVE DAYS

INGRESS/EGRESS 14 CONSECUTIVE DAYS

NEWLY ACQUIRED LOCATIONS 60 CONSECUTIVE DAYS

EXTENDED PERIOD OF INDEMNITY NO COVERAGE

WAITING PERIOD:

COVERAGE IS PROVIDED BY THIS POLICY ONLY IF THE CORRESPONDING WAITING PERIOD SPECIFIED IS EXCEEDED BY THE PERIOD OF INTERRUPTION OF THE INSURED’S BUSINESS. IF THE WAITING PERIOD IS EXCEEDED, THEN THE CORRESPONDING COVERAGE WILL APPLY:

OFF PREMISES POWER: NA HOUR(S) WAITING PERIOD

DEDUCTIBLES:

ALL DEDUCTIBLES LISTED BELOW ARE PER OCCURRENCE EXCEPT WITH RESPECT TO COVERAGE PROVIDED UNDER THE BOILER & MACHINERY ENDORSEMENT, IF ATTACHED, WHICH SHALL BE ANY ONE ACCIDENT.

PROPERTY DAMAGE & TIME ELEMENT COMBINED $250,000 QUOTATION

NAMED INSURED: City of Stillwater Page 5 of 10

EXCEPTIONS TO ABOVE DEDUCTIBLES:

EARTH MOVEMENT: $100,000

WIND EXCLUDED

1. If the deductible is specified as a (%) percentage, whether separately or combined, the deductible is calculated as follows:

PROPERTY DAMAGE – SEE ABOVE% of the 100% value submitted to and accepted by the COMPANY at the time of loss, of the property insured at the LOCATION where the physical loss or damage occurred.

TIME ELEMENT – SEE ABOVE% of the 100% Time Element values that would have been earned in the 12 month period following the OCCURRENCE by use of the facilities at the LOCATION where the loss or damage occurred, plus that proportion of the 100% TIME ELEMENT values at all other LOCATIONS where TIME ELEMENT loss ensues that was directly affected by use of such facilities and that would have been earned in the 12 month period following the OCCURRENCE

2. If the deductible is specified in hours or days, liability shall exist only for such part of the determined period of interruption in excess of the first number of hours or days stated above, starting at the time of physical loss or damage.

3. When this POLICY insures more than one INSURED LOCATION, the deductible will apply against the total loss covered by this POLICY in any one OCCURRENCE except that a deductible that applies on a per LOCATION basis, if specified, will apply separately to each LOCATION where the physical damage occurred regardless of the number of Locations involved in the OCCURRENCE.

4. Unless stated otherwise, if two or more deductibles apply to an OCCURRENCE, the total to be deducted will not exceed the largest deductible applicable. If two or more deductibles apply on a per INSURED LOCATION basis in an OCCURRENCE the largest deductible applying to each INSURED LOCATION will be applied separately to each such INSURED LOCATION.

5. If separate Property Damage and TIME ELEMENT deductibles are shown in the Declarations, then the deductible amount(s) shown in the Declarations shall apply separately to each such coverage.

6. The term "TIME ELEMENT" shall be defined as the actual loss sustained due to the necessary interruption of the Insured’s NORMAL business operations including but not limited to, loss described in the BUSINESS INTERRUPTION SECTION, if attached, and the following TIME ELEMENT extensions, if endorsed hereon: Contingent Business Interruption, Contingent Extra Expense, Extra Expense, Ingress/Egress, Leasehold Interest, Rental Value, Off Premises Power Business Interruption, but this definition shall not otherwise expand or modify the coverage, if any, provided by this POLICY or its Endorsements.

COINSURANCE:

100% (Waived by Agreed Amount Endorsement) QUOTATION

NAMED INSURED: City of Stillwater Page 6 of 10

ADDITIONAL TERMS AND CONDITIONS:

1. Coverages and/or Extensions of Coverage not specifically mentioned, even though they may be outlined in your submission, are not included. 2. 30% Minimum Earned Premium. 3. Premium to be paid in full within 30 days of inception. 4. Receipt of the completed and signed Surplus Lines Tax Filing Confirmation form warranting that the broker/agent will accept full responsibility for compliance of the Surplus Lines laws and the collection and remittance of the applicable surplus lines tax and/or stamping fees on 100% of the premium, must be received within 10 days of binding. If the Surplus Lines Filing Confirmation form is not received within 10 days, we reserve the right to cancel the binder and/or any policy issued in connection with the binder. 5. Broker will provide licensing information which will be verified prior to binding. No policies will be bound with a business entity or broker whose license is 1) not current and 2) has not been confirmed. 6. Any taxes imposed by virtue of the policy being written by an unathorized insurer are the responsibility of the insured and a licensed producer. 7. Business Interruption coverage shall only apply to those locations where Business Interruption values have been declared. 8. 72 Hour Occurrence Definition applies to WIND, FLOOD, EARTH MOVEMENT, Riot, Riot attending a strike, civil commotion and vandalism and malicious mischief. 9. Owned electrical transmission and distribution lines and their supporting structures located beyond 1,000 feet from any Insured premises are excluded. 10. Signed Statement of Property Values to be provided within 30 days of effective date. 11. Completed BI Worksheet within 30 days. 12. Should this quotation be accepted, the Company will authorize BROKER to issue Certificates of Insurance for the policy issued by the Company solely as a matter of convenience or information for the addressee (s) or holder(s) of said Certificate of Insurance. Any policy issued by this Company may only be amended by an endorsement issued by the Company. 13. TRIA Forms due within 15 days of binding or Insured will be billed for Terrorism 14. The following Endorsements/Additional Endorsements will attach to and form part of the policy. (additional endorsements may apply that are not listed here): a. Common Policy Conditions IL 00 17 11 98 b. Commercial Property Conditions CP 00 90 07 88 c. (OFAC) Advisory Notice to Policyholders IL P 001 01 04 d. Accounts Receivable Endorsement PR 006 (02/12) e. Agreed Amount Endorsement (Business Interruption) PR 007 (02/12) f. Agreed Amount Endorsement (Property) PR 008 (02/12) g. Biological Chemical Or Nuclear Exclusion h. Boiler and Machinery Endorsement PR 012 (07/13) i. Course of Construction Endorsement PR 018 (02/12) j. Data Distortion/Corruption Endorsement Covers Subsequent Damage from Named Perils and B&M PR 020 (02/12) k. Electronic Data Processing Endorsement PR 023 (02/12) l. Electronic Date Recognition Clause Endorsement (Combined) PR 024 (02/12) m. Extra Expense Endorsement PR 028 (02/12) n. Fire and Police Department Service Charges Endt PR 029 (02/12) o. Fine Arts Endorsement PR 030 (11/16) QUOTATION

NAMED INSURED: City of Stillwater Page 7 of 10

p. Demolition and Increased Cost of Construction PR 034 (04/21) q. Ingress/Egress Endorsement PR 035 (02/12) r. Leasehold Interest Endorsement PR 037 (02/12) s. Minimum Earned Premium Endorsement t. Mobile Equipment Endorsement PR 041 (11/16) u. Named Windstorm Definition PR 042 (11/16) v. Newly Acquired Locations Endorsement PR 043 (11/16) w. Occurrence Limit of Liability Endorsement PR 044 (02/12) x. Off Premises Power Endorsement PR 045 (02/12) y. Pollution and Contamination Clean-Up Endorsement PR 049 (02/12) z. Replacement Cost Endorsement PR054 (02/12) aa. Roof Limitation Endorsement bb. Schedule of Locations Endorsement PR 056 (09/14) cc. Temporary Removal of Property Endorsement PR 059 (02/12) dd. Terrorism Exclusion (For Certified Acts of Terrorism Under the Terrorism Risk Insurance Act, as amended) # 61330 (01/15) ee. Total Terrorism Exclusion # 61331 (01/15) ff. Terrorism Exclusion (Except for Certified Acts of Terrorism Under the Terrorism Risk Insurance Act, as amended) #61332 (01/15) gg. Terrorism Risk Insurance Act, as amended, Cap on Losses Endorsement # 61333 (01/15) hh. Trade or Economic Sanctions Endorsement PR 067 (02/12) ii. Transit Endorsement PR 064 (07/13) jj. Vacant Property Endorsement PR 099 (05/21) kk. Valuable Papers and Records Endorsement PR 066 (07/13) ll. War and Terrorism Exclusion (as respects transit) NMA2918 mm. Radioactive Contamination Exclusion Clause nn. Service of Suit – SSIL-0005 oo. Application of Sublimits Endorsement pp. Pre-Existing Damages Exclusion qq. Communicable Disease Exclusion- Starr 4/20 rr. Appendix A – New Madrid Seismic Zone PR073 (02/12) ss. Appendix B – Pacific Northwest Seismic Zone PR074 (02/12) tt. Standard Exclusions: Asbestos, Authorities, Mold, political Risks as specified in Property Coverage Form – General Conditions PR002 (11/16)

STARR SPECIALTY PREMIUM: $150,000 annual premium plus applicable State or Local Surcharges, Taxes and Fees, Countersignature Fees

STARR SPECIALTY TERRORISM PREMIUM (optional): $10,000 Plus any State or Local Surcharges, Taxes or Fees, Countersignature Fees (as respects Certified Acts of Terrorism as defined by the Terrorism Risk Insurance Act, as amended).

STARR SPECIALTY LOSS CONTROL ENGINEERING INSPECTION FEE (mandatory): $3,000 The Engineering Fee is exclusive of any commissions, taxes, fees or surcharges

SECURITY: Starr Surplus Lines Insurance Company QUOTATION

NAMED INSURED: City of Stillwater Page 8 of 10

CANCELLATION: 30 days except 10 days for nonpayment of premium.

THE COMPANY MAY WITHDRAW THIS QUOTATION AT ANY TIME PRIOR TO EFFECTIVE DATE SHOWN ABOVE AND IN NO EVENT WILL IT REMAIN OPEN FOR ACCEPTANCE BEYOND THE EFFECTIVE DATE SHOWN ABOVE. COVERAGE MAY NOT BE BOUND WITHOUT PRIOR WRITTEN AUTHORIZATION FROM THE COMPANY. QUOTATION

NAMED INSURED: City of Stillwater Page 9 of 10

***********SURPLUS LINES NOTICE ***********

The coverage as stated above is being bound on a surplus lines-non admitted basis. As a condition of binding the above coverage, the broker/agent warrants the following:

1) The broker/agent holds the surplus lines license in the state where coverage will be provided to the Insured, and accepts the full obligation to comply with each state's surplus lines laws and regulations in conjunction with this transaction.

2) The broker/agent accepts full responsibility for compliance, including but not limited to, the filing of the surplus lines affidavit (as per the state's requirements), and the collection and remittance of the surplus lines tax and any applicable stamping fee on 100% of the premium of this policy. The broker/agent's acceptance of these requirements is to be confirmed by completing, signing and dating the attached Surplus Lines Filings Confirmation form. POLICYHOLDER DISCLOSURE STATEMENT UNDER TERRORISM RISK INSURANCE ACT, AS AMENDED

You are hereby notified that under the federal Terrorism Risk Insurance Act of 2002, as amended (the “Act”), you now have a right to purchase insurance coverage for losses arising out of an Act of Terrorism, which is defined in the Act as an act certified by the Secretary of the Treasury in consultation with the Secretary of Homeland Security and the Attorney General of the United States (i) to be an act of terrorism, (ii) to be a violent act or an act that is dangerous to (A) human life; (B) property or (C) infrastructure, (iii) to have resulted in damage within the United States, or outside of the United States in case of an air carrier or vessel or the premises of a U.S. mission and (iv) to have been committed by an individual or individuals as part of an effort to coerce the civilian population of the United States or to influence the policy or affect the conduct of the United States Government by coercion. You should read the Act for the definition of an “Act of Terrorism” and other terms of the Act. The Secretary’s decision to certify or not to certify an event as an Act of Terrorism and thus encompassed by this law is final and not subject to review. Coverage is subject to all policy exclusions (including nuclear hazard and war exclusions) and other policy provisions.

For your information, coverage provided by this policy for losses caused by an Act of Terrorism may be partially reimbursed by the United States under a formula established by the Act. Under this formula, the United States pays an 80% share of terrorism losses covered by this law exceeding a statutorily established deductible that must be met by the insurer. This deductible is based on a percentage of the insurer’s direct earned premiums for the year preceding the Act of Terrorism.

Unless you reject coverage under the Act by so indicating below and returning this Policyholder Disclosure statement to us, you will have accepted Terrorism coverage under the Act.

Please indicate your selection below.

______I hereby elect to purchase coverage in accordance with the Act.

______I hereby reject coverage and accept the exclusion in accordance with the Act.

Date: Signature of Insured

Print Name/Title

12/2020

Starr Surplus Lines SLFC (ed. 04.01 2020) Cvstarrcaform1 (ed.10.29.14) MARKETING SUMMARY

Company Response

HDI Quoted

XL Declined – lack of controls

Ironshore Declined – class

Coalition Declined – lack of MFA

Sompo Declined – class/lack of controls

Cowbell Quoted: $1m/$50k/$45k

Corvus Declined – lack of MFA

CFC Declined - class

Beazley Declined - class

At-Bay Unable to provide terms

Axis Declined – lack of controls

AWAC Declined - class

Markel Declined - class

Brit Unable to provide terms

AIG Indicated: $20k $100k retentions – ransomware coinsurance Quotation Summary

05/27/2021 Coverage: Cyber Liability Full Program

Proposal Information Named Insured City of Stillwater PO Box 1449, Stillwater, OK 74074 Carrier HDI Specialty Insurance Company (Non-Admitted, S&P A+ Rating) Coverage Form Commercial Cyber Insurance Policy (CY CF 5000 0119)(Claims Made & Reported) Policy Period 06/01/2021 - 06/01/2022 Retroactive Date Full Prior Acts

Coverage Options Policy Aggregate Limit of Insurance $2,000,000 Deductible $5,000 Coverage Modules Network Security and Privacy Liability Full Limit Multimedia Liability Full Limit Incident Response Expense Full Limit Business Interruption Loss and Extra Expense Full Limit 8 Hour Waiting Period applies Data Restoration Expense Full Limit Cyber Theft and Social Engineering Loss Full Limit with Delete Crime Controls with Delete Crime Controls Coverage Enhancement Enhancement Endorsement Cyber Extortion and Ransomware Expense Full Limit Bricked Device Restoration Expense Full Limit Business Reputation Loss Full Limit Contingent Bodily Injury Full Limit Contingent Business Interruption Full Limit Contingent Property Damage Full Limit Laptop and Devices Replacement $50,000 Sublimit $500 Deductible Estimated Policy Premium $ 19,916.00 Surplus Lines Tax $ 1,194.96 TOTAL $ 21,110.96

Forms and Endorsements Form Number Title CY SUX 5000 0119 Commercial Cyber Policy Jacket CY SU 5001 0119 Declarations CY CF 5000 1119 Commercial Cyber Insurance Coverage Form HS IL AM 4005 0818 Service of Suit CY AM 5003 1119 Bricked Device Endorsement CY AM 5004 0119 Business Reputation Loss Endorsement CY AM 5008 0119 Contingent Bodily Injury Endorsement CY AM 5009 0119 Contingent Business Interruption Endorsement CY AM 5010 0119 Contingent Property Damage Endorsement CY AM 5012 0119 Delete Crime Controls Endorsement CY AM 5016 0119 Laptop Replacement Endorsement Reliance on “Other Carrier’s” Application CY AM 5019 0119 Endorsement CY AM 5102 0119 Economic or Trade Sanctions CY AM 5103 0119 OFAC Advisory Notice PP 3000 0517 Privacy Notice CY AM 5105 RTS 0820 RT Specialty Amendatory Endorsement

Proposal for City of Stillwater Page 1 of 6 Quotation Summary

Subjectivities 1. This proposal is valid until 06-01-2021. 2. A completed and underwriting-approved application is required to bind coverage. 3. Receipt and underwriting acceptance of completed HDI “Cyber Crime Controls” Application section. 4. Receipt and underwriting acceptance of completed HDI “Contingent Business Interruption” Application section.

Binding Instructions We will only bind coverage in writing after we receive a written request from you to bind coverage. If coverage is requested, the following items must be submitted: There are subjectivities that: • must be complied with or resolved before the contract becomes binding • apply both before or after inception, compliance with which is a condition of all or part of the coverage; and • apply after the formation of the contract as conditions of continued coverage. Please note that this is a quote only, and the Insurer reserves the right to amend or withdraw the quote if new, corrected or updated information creating a material difference from the previously provided underwriting material is received. You must notify us of any material change in the risk exposure occurring after submission of the application. If the Insurer binds the risk following your written request, the terms of the policy currently in use by the Insurer will supersede the quote. Any amendments to coverage must be specifically requested in writing or by submitting a policy change request form and then approved by the Insurer. Coverage cannot be affected, amended, extended or altered through the issuance of certificates of insurance. Underlying Insurers must be rated A- VII or better by A.M. Best. This quote summary, the quote, the fees quoted and our advice, is confidential. This quote summary and the quote constitutes the entire understanding and supersedes any and all agreements and communications respecting the insurance offered. If you need further information about the quote, our fee or the Insurer that is proposing to provide your insurance, please contact us.

SPECIAL CONDITIONS / OTHER COVERAGES: • NO FLAT CANCELLATIONS • ALL FEES ARE FULLY EARNED AT INCEPTION • For R-T Specialty to file the surplus lines taxes on your behalf, please complete the surplus lines tax document and return with your request to bind. Due to state regulations, R-T Specialty requires tax documents to be completed within 24 to 48 hours of binding. Please be diligent in returning tax forms.

HOME STATE FOR NON-ADMITTED RISKS: Taxes and governmental fees are estimates and subject to change based upon current rates of the Home State and risk information available at the date of binding. The Home State of the Insured for a non-admitted risk shall be determined in accordance with the Nonadmitted and Reinsurance Act of 2010, 15. U.S.C §8201, etc. (“NRRA”). Some states require the producing broker to submit a written verification of the insured's Home State for our records. The applicable law of the Home State governing cancellation or non-renewal of insurance shall apply to this Policy.

RT Specialty is a division of RSG Specialty, LLC, a Delaware limited liability company and a subsidiary of Ryan Specialty Group, LLC. In California: RSG Specialty Insurance Services, LLC (License # 0G97516).

Proposal for City of Stillwater Page 2 of 6 Quotation Summary

Summary of Policy Terms • Duty to defend • Defense costs within the policy limit Defense and Settlement • Mutual selection of defense counsel • 80% / 20% settlement provision If you believe that your organization has suffered an incident or claim covered by your cyber insurance policy, please contact our incident resolution center immediately at:

Indicent or claim reporting O’Hagan Meyer 1 East Wacker Drive, Suite 3400, Chicago, IL 60606 24 Hour Hotline: 1-855-247-4710 Email: [email protected] Claim means: 1. a civil, disciplinary, administrative, licensing board, professional, or regulatory proceeding other than an investigation commenced by the filing of a complaint, notice of charges or similar pleading; 2. an arbitration, mediation, or other alternative dispute resolution proceeding; 3. a written demand for services or monetary relief; 4. written notice by you to us of circumstances that could give rise to a claim; or Definition of "Claim" 5. a request received to toll or waive a statute of limitations, including, where applicable, any appeal therefrom, and alleging a wrongful act.

Claim will also include an administrative or regulatory investigation, but only if you give written notice of such investigation to us pursuant to section V.D of this Policy and request that we treat such investigation as a claim under this Policy, provided further that such claim will be deemed to have been made when such notice is given to us. Also, with respect to an investigation that constitutes a claim pursuant to the foregoing sentence, the term wrongful act also means the matter(s) that gave rise to such investigation. You, your, or yours means: 1. the named insured and any subsidiary; any past, present, or future officer, director, trustee, partner, member, principal, stockholder, owner, 2. employee, or independent contractor of the named insuredor any subsidiary, but only while acting within the scope of their duties as such; a principal if you are a sole proprietorship, but only while acting within the scope of their duties as 3. such; any person who previously qualified as you under section III.QQ.2 of this Policy prior to the termination 4. of the required relationship with the named insured or any subsidiary, but only with respect to the performance of their duties as such; the estate, heirs, executors, administrators, assignees, and legal representatives of any of you in the 5. event of your death, incapacity, insolvency, or bankruptcy, but only to the extent that you would Who is insured otherwise be provided coverage under this Policy; the lawful spouse of any of you, including any natural person qualifying as a domestic partner under the 6. provisions of any applicable federal, state, or local law in the United States, but only for wrongful acts committed by of any of you defined in sections III.QQ.2 through III.QQ.4 of this Policy; and any person or entity the named insured or a subsidiary are required by contract to add as an 7. additional insured under this Policy, but only for wrongful acts covered by this Policy, which are committed by of any of you defined in section III.QQ.1 through section III.QQ.4 of this Policy.

Your computer system means any computer hardware, software or firmware and componentry thereof, and including data stored thereon that is: 1. operated by and either owned, rented, or leased by the named insured or any subsidiary; or operated by third parties and used for information technology or telecommunication services, including 2. transmitting, hosting, storing, maintaining, managing, or processing software, data, or other information on behalf of the named insured or any subsidiary. Automatic Extended Reporting Period: 60 Days Optional Extended Reporting Periods: Extended Reporting Period • 12 months: 75% of the Annual Premium • 24 months: 125% of the Annual Premium • 36 months: 150% of the Annual Premium Coverage Territory This insurance applies to wrongful acts, claims, or first-party events occurring anywhere in the world.

IMPORTANT

This proposal and/or any executive summaries outline certain terms and conditions of the insurance proposed by the insurers, based on the information provided by your company. The insurance policies themselves must be read to fully understand the terms, coverages, exclusions, limitations and/or conditions of the actual policy contract of insurance.

Please refer to the policy form and endorsement(s) for the meaning of terms defined in bold.

Proposal for City of Stillwater Page 3 of 6 Cyber Insurance Application

SOLELY AS RESPECTS CLAIMS-MADE LIABILITY COVERAGES UNDER THE POLICY FOR WHICH THIS APPLICATION IS BEING SUBMITTED: THIS INSURANCE POLICY PROVIDES COVERAGE ON A CLAIMS-MADE AND REPORTED BASIS AND APPLIES ONLY TO CLAIMS FIRST MADE AGAINST THE INSURED DURING THE POLICY PERIOD OR ANY APPLICABLE EXTENDED REPORTING PERIOD AND REPORTED TO THE INSURER AS SET FORTH IN THE REPORTING OF CLAIMS AND EVENTS SECTION. DEFENSE COSTS ARE INCLUDED IN THE LIMITS OF INSURANCE, AND PAYMENT THEREOF WILL ERODE, AND MAY EXHAUST, THE LIMITS OF INSURANCE.

Commercial Cyber Insurance Application

The term “Applicant," herein refers individually and collectively to all proposed insureds; all responses shall be deemed made on behalf of all proposed insureds.

To determine the Number of Employees, count all full time and part time employees and any partners, directors and officers; employees who collect $40,000 or fewer in total annual commission and salary may each be counted as part time employees.

Insurers will rely on statements made in this application. This form must be dated and signed.

I. Company Information

Applicant Entity Name: City of Stillwater Primary Website Address: http://www.stillwater.org/ Mailing Adress: PO Box 1449, Stillwater, OK 74074

Full Time Employees: 573 Part Time Employees: 0 Total Number of Employees: 573

II. Warranties

Please read the Warranties carefully. Past cybersecurity incidents and claims must be reported on a separate Past Experience Supplement Form. If an Applicant has no past cybersecurity incidents or claims in the past 3 years, no Past Experience Supplement Form is required.

A. Applicant primarily operates in the Public Non-Profit industry and generated gross annual revenues below $250,000,000.01 in the last complete calendar year. B. Applicant has reported any cybersecurity incidents which occurred or were discovered in the last 3 years. A cybersecurity incident is any event that threatens the security, confidentiality, integrity, or availability of information assets (electronic or paper), information systems, and/or the networks that deliver such information. C. Applicant has reported all claims or circumstances in the past 3 years that could give rise to a claim to appropriate prior carrier(s) and understands that all such known claims or potential claims will not be covered by this insurance. D. Applicant is not aware of any claim, incident or circumstance which could reasonably be expected to result in a claim against Applicant under the proposed insurance which has not been disclosed on this application herein.

III. Cyber Crime Controls

1. Who is Authorized? Is the authority to initiate funds or securities transfers limited to specific job titles? Yes

2. Anti-fraud Training Are employees with the authority to initiate funds or securities transfers provided anti-fraud training Yes concerning the detection of phishing and other social engineering scams?

3. Out-of-band-authentication Controls Yes Response Required; "When transactions exceed $25,000" 3x Cyber Crime Deductible applies Prior to initiating an electronic financial transaction with customers, clients or vendors, does the Applicant utilize a separate communication channel for verification of Yes instructions other than the original source of such request?

RT Specialty Commercial Cyber Application 0619 Page 4 of 6 Cyber Insurance Application

IV. Contingent Business Interruption

1. Business Interruption Controls Does the applicant maintain any of the following practices? □ Applicant maintains a business continuity and disaster recovery plan □ Applicant has a formal process to conduct due diligence on new vendors Applicant requires vendors to demonstrate information security protections that meet established □ requirements Applicant maintains redundant resource that can be employed if an important or critical system is □ disrupted

Signature

By signing this document, the undersigned authorized representative of the Applicant represents on behalf of all persons and entities proposed for coverage, after inquiry, that to the best of their knowledge:

The statements and answers given in and all materials submitted with this Application are true, accurate and complete. These representations contained in or attached to this Application are a material inducement to the Insurer to provide a proposal for insurance and all information and materials furnished to the Insurer in conjunction with this Application shall be deemed incorporated into and made a part of the policy, should a policy be issued Applicant will report to the Insurer immediately in writing any material changes to the answers provided in this Application which occur or are discovered between the date of this Application and the effective date of the policy for which coverage is sought by submission this Application The Insurer reserves the right, upon receipt of any such notice, to modify or withdraw any proposal for insurance the Insurer has offered.

Name: Title: Email: Signed: Date:

PLEASE REVIEW THE STATE FRAUD STATEMENT BELOW APPLICABLE TO THE STATE IN WHICH APPLICANT RESIDES. Notice to Arkansas, Minnesota, New Mexico and Ohio Applicants: Any person who, with intent to defraud or knowing that he/she is facilitating a fraud against an insurer, submits an application or files a claim containing a false, fraudulent or deceptive statement is, or may be found to be, guilty of insurance fraud, which is a crime, and may be subject to civil fines and criminal penalties. Notice to Colorado Applicants: It is unlawful to knowingly provide false, incomplete or misleading facts or information to an insurance company for the purpose of defrauding or attempting to defraud the company. Penalties may include imprisonment, fines, denial of insurance, and civil damages. Any insurance company or agent of an insurance company who knowingly provides false, incomplete, or misleading facts or information to a policy holder or claimant for the purpose of defrauding or attempting to defraud the policy holder or claimant with regard to a settlement or award payable from insurance proceeds shall be reported to the Colorado Division of Insurance within the Department of Regulatory agencies. Notice to District of Columbia Applicants: WARNING: It is a crime to provide false or misleading information to an insurer for the purpose of defrauding the insurer or any other person. Penalties include imprisonment and/or fines. In addition, an insurer may deny insurance benefits, if false information materially related to a claim was provided by the applicant. Notice to Florida Applicants: Any person who knowingly and with intent to injure, defraud, or deceive any insurer files a statement of claim or an application containing any false, incomplete, or misleading information is guilty of a felony of the third degree. Notice to Kentucky Applicants: Any person who knowingly and with intent to defraud any insurance company or other person files an application for insurance containing any materially false information or conceals, for the purpose of misleading, information concerning any fact material thereto commits a fraudulent insurance act, which is a crime. Notice to Louisiana and Rhode Island Applicants: Any person who knowingly presents a false or fraudulent claim for payment of a loss or benefit or knowingly presents false information in an application for insurance is guilty of a crime and may be subject to fines and confinement in prison. Notice to Maine, Tennessee, Virginia and Washington Applicants: It is a crime to knowingly provide false, incomplete or misleading information to an insurance company for the purpose of defrauding the company. Penalties may include imprisonment, fines or a denial of insurance benefits. Notice to Alabama and Maryland Applicants: Any person who knowingly or willfully presents a false or fraudulent claim for payment of a loss or benefit or who knowingly or willfully presents false information in an application for insurance is guilty of a crime and may be subject to fines and confinement in prison.

RT Specialty Commercial Cyber Application 0619 Page 5 of 6 Cyber Insurance Application

Notice to New Jersey Applicants: Any person who includes any false or misleading information on an application for an insurance policy is subject to criminal and civil penalties. Notice to Oklahoma Applicants: WARNING: Any person who knowingly, and with intent to injure, defraud or deceive any insurer, makes any claim for the proceeds of an insurance policy containing any false, incomplete or misleading information is guilty of a felony. Notice to Oregon and Texas Applicants: Any person who makes an intentional misstatement that is material to the risk may be found guilty of insurance fraud by a court of law. Notice to Pennsylvania Applicants: Any person who knowingly and with intent to defraud any insurance company or other person files an application for insurance or statement of claim containing any materially false information or conceals for the purpose of misleading, information concerning any fact material thereto commits a fraudulent insurance act, which is a crime and subjects such person to criminal and civil penalties. Notice to New York Applicants: Any person who knowingly and with intent to defraud any insurance company or other person files an application for insurance or statement of claim containing any materially false information, or conceals for the purpose of misleading, information concerning any fact material thereto, commits a fraudulent insurance act, which is a crime and shall also be subject to: a civil penalty not to exceed five thousand dollars and the stated value of the claim for each such violation. Notice for all other Applicants: Any person who, with intent to defraud or knowingly facilitates a fraud against the Insurer, submits an application or files a claim containing a false or deceptive statement may be guilty of insurance fraud.

RT Specialty Commercial Cyber Application 0619 Page 6 of 6