915-0098 02 12 APL Non-Public Audit Client Supplement v1.0

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915-0098 02 12 Page 1 of 3 Hanover Professional Portfolio Accountants Professional Liability Insurance Non-Public Audit Client Supplement___________ Underwritten by The Hanover Insurance Company THIS POLICY PROVIDES COVERAGE ON A CLAIMS-MADE BASIS. SUBJECT TO ITS TERMS, THIS POLICY APPLIES ONLY TO CLAIMS FIRST MADE AGAINST THE INSUREDS DURING THE POLICY PERIOD OR ANY APPLICABLE EXTENDED REPORTING PERIOD. THE LIMIT OF LIABILITY CAN BE COMPLETELY EXHAUSTED BY CLAIMS EXPENSES AND CLAIMS EXPENSES WILL BE APPLIED AGAINST THE DEDUCTIBLE. WE WILL HAVE NO LIABILITY FOR CLAIMS EXPENSES OR THE AMOUNT OF ANY JUDGEMENT OR SETTLEMENT IN EXCESS OF THE APPLICABLE LIMIT OF LIABILITY. PLEASE READ THE ENTIRE POLICY CAREFULLY. 1. Client Industry # of Audits Estimated Audit Fees # of Clients with Assets over $5,000,000 # of Clients with Net Loss for last FYE a. Agribusiness (non Grain Elevator) $ b. Agribusiness (Grain Elevator) $ c. Automobile / Vehicle Dealers / Rental $ d. Banks / Lending Institutions $ e. Broker Dealers $ f. Construction $ g. Employee Benefits / Welfare Plans: 1. Subject to ERISA 2. Non subject to ERISA $ h. Entertainment Services $ i. Government / Municipal $ j. Health Care Institutions $ k. Implement Sales $ l. Insurance Companies* $ m. Investment Companies & Funds: 1. Hedge Funds and “Funds of Funds” 2. All others $ n. Manufacturing $ o. Mass Media $ p. Mining / Oil & Gas $ q. Not-for-profit $ r. Professionals – Health care $ s. Professionals – Non Health Care $ t. Real Estate Development / Mgmt $ u. Retail $ v. Service Providers – Other $ w. Transportation $ x. Tribal Entities $ y. Unions $ z. Warehousing / Distribution / Wholesale $ aa. Web-based Business $ bb. Other – (please describe) $ Hanover Insurance Group ®

Transcript of 915-0098 02 12 APL Non-Public Audit Client Supplement v1.0

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Hanover Professional Portfolio Accountants Professional Liability Insurance

Non-Public Audit Client Supplement___________ Underwritten by The Hanover Insurance Company

THIS POLICY PROVIDES COVERAGE ON A CLAIMS-MADE BASIS. SUBJECT TO ITS TERMS, THIS POLICY APPLIES ONLY TO CLAIMS FIRST MADE AGAINST THE INSUREDS DURING THE POLICY PERIOD OR ANY APPLICABLE EXTENDED REPORTING PERIOD. THE LIMIT OF LIABILITY CAN BE COMPLETELY EXHAUSTED BY CLAIMS EXPENSES AND CLAIMS EXPENSES WILL BE APPLIED AGAINST THE DEDUCTIBLE. WE WILL HAVE NO LIABILITY FOR CLAIMS EXPENSES OR THE AMOUNT OF ANY JUDGEMENT OR SETTLEMENT IN EXCESS OF THE APPLICABLE LIMIT OF LIABILITY. PLEASE READ THE ENTIRE POLICY CAREFULLY.

1. Client Industry# of

Audits Estimated Audit Fees

# of Clients with Assets

over $5,000,000

# of Clients with Net Loss for last FYE

a. Agribusiness (non Grain Elevator) $

b. Agribusiness (Grain Elevator) $

c. Automobile / Vehicle Dealers / Rental $

d. Banks / Lending Institutions $

e. Broker Dealers $

f. Construction $

g. Employee Benefits / Welfare Plans: 1. Subject to ERISA2. Non subject to ERISA

$

h. Entertainment Services $

i. Government / Municipal $

j. Health Care Institutions $

k. Implement Sales $

l. Insurance Companies* $

m. Investment Companies & Funds: 1. Hedge Funds and “Funds of Funds”2. All others

$

n. Manufacturing $

o. Mass Media $

p. Mining / Oil & Gas $

q. Not-for-profit $

r. Professionals – Health care $

s. Professionals – Non Health Care $

t. Real Estate Development / Mgmt $

u. Retail $

v. Service Providers – Other $

w. Transportation $

x. Tribal Entities $

y. Unions $

z. Warehousing / Distribution / Wholesale $

aa. Web-based Business $

bb. Other – (please describe) $

Hanover Insurance Group®

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*Insurance Companies – include all stock companies, Lloyds organizations, insurance exchanges, mutual companies, reciprocal exchanges, fraternal organizations, captives, self-insurance funds, risk retention groups, pools & associations, HMOs and PPOs – LIST ALL INSURANCE COMPANIES BY NAME ON A SEPARATE SHEET WITH CURRENT AM BEST RATING.

2. On a separate sheet, list each firm partner that performs audits and describe their industry experience and relevant CPE courses completed in the past 3 years.

3. Does your firm have a written policy on audit-related CPE training, including required courses and CPE hours

per year specific to audit services? Yes No 4. Does a second partner review all audit workpapers and the audit report prior to sign-off and release of audit

report? Yes No 5. Do your firm’s client acceptance procedures pertaining to audit engagements require sign-off by a second

partner or committee prior to accepting a new engagement? Yes No

The undersigned, acting on behalf of all Applicants, declares that the statements above are true and complete to the best knowledge of all persons to be insured and that I/we have not suppressed or misstated any facts and I/we understand that this supplement becomes part of the application.

Date Signature/Title

_____

______________________________________________________________________ (Date) (Chief Executive Officer, President, Chief Financial Officer, Managing Partner or Owner)

_____

_________________________________________________________________ (Date) (Print Name)

_____

_________________________________________________________________ (Date) (Print Title)

Produced By: Agent: _____________________ Agency: _________________________________ Agent Signature: _________________________________________________________________________ Agency Taxpayer ID or SS No.: ______________ Agent License No.: _______________________ Address (Street, City, State, Zip): ________________________________________________________

NOTICE TO ARIZONA AND MISSOURI APPLICANTS: Claim Expenses are Inside the Policy Limits. All claim expenses shall first be subtracted from the limit of liability, with the remainder, if any, being the amount available to pay for damages. NOTICE TO ARKANSAS, LOUISIANA AND WEST VIRGINIA 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.

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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 provide 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 HAWAII APPLICANTS: For your protection, Hawaii law requires you to be informed that presenting a fraudulent claim for payment of a loss or benefit is a crime punishable by fines or imprisonment, or both. NOTICE TO IDAHO AND OKLAHOMA APPLICANTS: 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 KENTUCKY 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. 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 include imprisonment, fines and denial of insurance benefits. NOTICE TO MARYLAND APPLICANTS: Any person who knowingly and willfully presents a false or fraudulent claim for payment of a loss or benefit or knowingly and willfully 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 MICHIGAN AND MINNESOTA APPLICANTS: Any person who knowingly and with intent to defraud an insurance company or another 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 act, which is a crime and subjects the person to criminal and civil penalties. NOTICE TO NEW JERSEY APPLICANTS: Any person who knowingly includes any false or misleading information on an application for an insurance policy or files a statement of claim containing any false or misleading information is subject to criminal and civil penalties. NOTICE TO NEW MEXICO 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 civil fines and criminal penalties. NOTICE TO OHIO APPLICANTS: Any person who, with intent to defraud or knowing that he is facilitating a fraud against an insurer, submits an application or files a claim containing a false or deceptive statement is guilty of insurance fraud. NOTICE TO OREGON APPLICANTS: Any person who knowingly and with intent to defraud or solicit another to defraud any insurance company: (1) by submitting an application, or (2) by filing a claim containing a false statement as to any material fact, may be violating state 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 VERMONT APPLICANTS: Any person who knowingly presents a false statement in an application for insurance may be guilty of a criminal offense and subject to penalties under state law.