Exhibit 2 - Cyber Insurance Quote5555 Triangle Parkway, Suite 400 Norcross, GA 30092 Phone: 770-448-7148 Fax: 770-447-1663
Sep 23, 2020
Jennifer Cobb
Lockton Companies, LLC - Dallas
2100 Ross Ave.
Suite 1400
Dallas, TX 75201
Re: City of Denton, Texas, Ref# 8693662-B
Proposed Effective 10/1/2020 to 10/1/2021
Dear Jennifer:
We are pleased to confirm the attached quotation for CYBER being offered with Underwriters at Lloyd's of London. This
carrier is Non-Admitted in the state of TX. Please note that this quotation is based on the coverage, terms and conditions
as stated in the attached quotation, which may be different from those requested in your original submission. As you are
the representative of the Insured, it is incumbent upon you to review the terms of this quotation carefully with your Insured,
and reconcile any differences from the terms requested in the original submission. CRC Insurance Services, Inc.
disclaims any responsibility for your failure to reconcile with the Insured any differences between the terms quoted as per
the attached and those terms originally requested. The attached quotation may not be bound without a fully executed
CRC brokerage agreement.
NOTE: If insured is located outside your resident state, we must receive a copy of your non-resident
license prior to binding.
The Insurance Carrier indicated in this quotation reserves the right, at its sole discretion, to amend or withdraw
this quotation if it becomes aware of any new, corrected or updated information that is believed to be a material
change and consequently would change the original underwriting decision.
If coverage is elected, please note:
Guaranty Fund Nonparticipation Notice
This insurance contract is with an insurer not licensed to transact insurance in this state and is issued and
delivered as surplus line coverage under the Texas insurance statutes. The Texas Department of Insurance does
not audit the finances or review the solvency of the surplus lines insurer providing this coverage, and the insurer
is not a member of the property and casualty insurance guaranty association created under Chapter 462,
Insurance Code. Chapter 225, Insurance Code, requires payment of a ___4.85_______ percent tax on gross
premium.
Home State: TEXAS
The Home State was determined based on the information provided in your submission and the
completed Declaration of Home State form. Please ensure the correct Home State is listed.
Incorrect information could result in additional or return taxes, fees, surcharges, penalties, interest,
and assessments at a later date, and in addition to what is shown. Additionally, please note that
this is the current tax calculation based on the Home State but there could be changes that result
in additional or return tax - due at a later date - based on future enactments of surplus lines laws
by any of the various states.
Should coverage be elected as quoted per the attached, Premium and Commission are as follows:
Premium:$57,000.00
Surplus Lines Tax $2,764.50
Stamping Office Fee $85.50
Total:$59,850.00
TRIPRA Status:INCLUDED
Tax Filings are the responsibility of: CRC
Commission: 12.5%
Broker Fees & Policy Fees are Fully Earned at Binding
Should City of Denton, Texas elect to bind coverage as per the attached, simply complete the Request to Bind box below
and return to our office prior to the requested effective date of coverage. Should you have any questions, please feel free
to contact our office.
CRC is compensated in a variety of ways, including commissions and fees paid by insurance companies and fees paid by
clients. Some insurance companies pay brokers supplemental commissions (sometimes referred to as “contingent
commissions” or “incentive commissions”), which is compensation that is based on a broker's performance with that
carrier. These supplemental commissions may be based on volume, profitability, retention, growth or other measures.
Even if a contingent commission agreement exists with a carrier, we recognize that our responsibility is to promote the best
interests of the policyholder in the selection of an insurance company. For more information on CRC's compensation,
please contact your CRC broker.
Financing Insurance Premiums
Premium financing budgets insurance payments and improves liquidity for other business objectives: working
capital, business growth, business expansion.
If your clients choose to pay their insurance in monthly installments, it's fast and easy with AFCO Credit
Corporation, which is an affiliate of CRC, providing premium financing solutions for companies across the
United States.
You can learn more about how premium financing works and how it can expand your relationship with your
clients by emailing afcodirect@afco.com; or call toll-free 877-317-6437, option 1. Additional information is
available at https://www.afco.com/partners/crc.html.
Sincerely,
Jared Hopkins
770-448-7148
jhopkins@crcgroup.com
8693662
REQUEST TO BIND COVERAGE
Complete and return to Jared Hopkins via email at jhopkins@crcgroup.com .
Submission #: 8693662-B City of Denton, Texas
Agency Response:[ ] Yes, please bind as quoted, effective:_____________
PREMIUM IS BEING FINANCED BY ___________________________ ACCOUNT #_______________
Name of Premium Finance Company
Signed by: ________________________________Date: _______________
Representative of Lockton Companies, LLC - Dallas
CONFIDENTIAL
cyber privacy response
Terms, Conditions and Subjectivities
The following requirements must be satisfied prior to binding: 1.Provide individual contact and contact information (first and last name, email, phone, etc.) for
the assured for the Brit Data Safe benefits. Please reference attached brochure.
Cancellation – No flat cancellations.
This quote is valid for 60 days
Insured
Policy Period:
Insurer:
Coverage:
City of Denton, Texas
251 E. McKinney St.
Denton TX, 76201
From: 01-OCT-2020 To: 01-OCT-2021
Both days at 12:01 a.m. local standard time at the address above.
Syndicates 2987/2988 at Lloyd’s, London
Cyber Privacy Response (CPR)
Forms and special conditions: The coverage is subject to all terms and conditions set forth in the Policy which includes, but is not limited to, all Forms and Endorsements (hereinafter “Endorsements”) identified on the
Schedule of Forms and Endorsements listed below.
Territory:
Choice of Law:
Service of Suit:
Currency:
Worldwide
New York
Corporation Service Company d/b/a CSC Lawyers Incorporating Service Company. 211 East 7th Street, Suite 620,
Austin, TX 78701
All premiums, limits, deductibles, and other amounts under this Policy are expressed by the dollar symbol ($) and payable in United States Dollars (USD).
cyber privacy response
COVERAGES AND LIMITS OF LIABILITY
Limits and Sublimits of Liability for individual coverages being offered are shown below. A Limit or Sublimit of “NIL”
or “N/A” indicates that the particular coverage has not been included in the quotation. Note: All limits include claim
expenses as applicable.
Option 1
$3,000,000 Annual Policy Aggregate
A.Privacy and Security
Liability and Regulatory $3,000,000 Each Claim
B.Privacy and Security
Breach Response*
Breach Response Services
other than Notification
Services and Identity
Protection Services
$2,500,000 Each Security Breach
Notification Services and
Identity Protection Services 1,000,000 Notified Individuals
C.PCI DSS Assessments
Coverage $3,000,000 Each PCI DSS Assessment
PCI Recertification Expenses $100,000
This sublimit is included
within the overall sublimit for
PCI DSS Assessments
D.Cyber Extortion
Coverage $3,000,000 Each Cyber Extortion Threat
E.Business Income Loss
and Digital Asset
Restoration
$3,000,000 Each Covered Cause of Loss
Claim preparation costs
applicable to Business
Income Loss*
$50,000
Each Covered Cause of Loss
included with the overall
sublimit for Business Income
Loss
F.Multimedia Liability $3,000,000 Each Claim
G.Cyber Crime $250,000 Each Crime Loss and in the
aggregate
Breach Response
Retention(s) $10,000 Each Security Breach
Extortion Retention(s) $100,000 Each Extortion Threat
All Other Retention(s) $50,000 Each Claim
Aggregate Retention
2x Each
Claim
Retention
Maximum Aggregate
Retention All Coverages
Retention Notified Individuals 100
Waiting Period (Business
Income Loss) 8 Hours
Premium: $57,000 - Please see CRC's cover page for total premium.
*Insuring Agreement B Privacy and Security Breach Response is Separate from and in Addition
to the Policy Aggregate Limit of Liability but Subject to the Separate Aggregate Sublimits
cyber privacy response
Retroactive Date: Full Prior Acts
Continuity Date: 01-OCT-2019
Policy Form: CPR40020319 Cyber Privacy Response
ENDORSEMENTS EFFECTIVE AT INCEPTION
Endorsement: Title:
CPR10210120 Lloyd’s Certificate Jacket
BRT10151218 Lloyd’s Security Schedule
•Syndicate 2987 – 90.0000%
•Syndicate 2988 – 10.0000%
CPR51610220 U.S. Terrorism Risk Insurance Act of 2002 as Amended
CPR10220819 Complaints Procedures
CPR51940520 Amend Definition of Crime Loss
CPR50480219 Contingent Bodily Injury Coverage
•$250,000
CPR52060620 CRC Enhancement Endorsement
•$3,000,000
•$50,000
•$1,000,000
CPR50111218 Invoice Manipulation Loss
•$250,000
CPR51290819 System Hijacking Coverage
•$250,000
If after this document is issued, the Underwriters receive any new information or the applicant
becomes aware of a Claim or Circumstance which could reasonably become a Claim under this
proposed coverage that reflects any material change in the underwriting exposure, we may at our
discretion, withdraw or modify the quotation at any time prior to Underwriters’ acceptance of the
binder even if accepted by the Insured.