EX-99.1 2 file2.htm CHUBB

PREMIUM BILL

THIS BILLING IS TO BE ATTACHED TO AND FORM PART OF THE BOND REFERENCED BELOW.


NOTE:	PLEASE RETURN THIS BILL WITH REMITTANCE AND NOTE HEREON ANY CHANGES. BILL WILL BE RECEIPTED AND RETURNED TO YOU PROMPTLY UPON REQUEST.

PLEASE REMIT TO PRODUCER INDICATED ABOVE. PLEASE REFER TO:

EFFECTIVE DATE

BOND NUMBER

COVERAGE

PREMIUM

July 1, 2006 To July 1, 2007

81866024

One Year Renewal - Financial
Institution Excess Bond Form E

61,000

15% Commission

TOTAL

61,000

IMPORTANT POLICYHOLDER INFORMATION

Inquiries concerning your policy should be directed to your insurance agent. The name, address and telephone number of your agent, if one is involved, is shown on the policy and/or in the material accompanying the policy.

If you require additional information you may contact the California Insurance Department at either the following address or phone number:

California Insurance Department
300 South Spring Street
Los Angeles, CA 90012
1-800-927-HELP

IMPORTANT NOTICE

The premium shown on this policy or premium statement may be subject to adjustment in accordance with the provisions of California law recently adopted by ballot initiative. You will be informed about any adjustment as soon as the requirements of the law and their effect on your premium can be determined.

Chubb & Son, div. of Federal Insurance Company
as manager of the member insurers of the
Chubb Group of Insurance Companies

POLICYHOLDER
DISCLOSURE NOTICE OF
TERRORISM INSURANCE COVERAGE

(for policies with no terrorism exclusion or sublimit)

You are hereby notified that, under the Terrorism Risk Insurance Act of 2002 (the ‘‘Act’’) effective November 26, 2002, this policy makes available to you insurance for losses arising out of certain acts of international terrorism. Terrorism is defined as any act certified by the Secretary of the Treasury, in concurrence with the Secretary of State 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 an air carrier or vessel or the premises of a United States Mission; and to have been committed by an individual or individuals acting on behalf of any foreign person or foreign interest, 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 the insurance provided by your policy for losses caused by acts of terrorism is partially reimbursed by the United States under the formula set forth in the Act. Under this formula, the United States pays 90% of covered terrorism losses that exceed the statutorily established deductible to be paid by the insurance company providing the coverage. The portion of your policy’s annual premium that is attributable to insurance for such acts of terrorism is: $ -0-.

If you have any questions about this notice, please contact your agent or broker.


			DECLARATIONS FINANCIAL INSTITUTION EXCESS BOND FORM E
15 Mountain View Road, Warren, New Jersey 07059


NAME OF ASSURED:			Bond Number: 81866024
PIMCO FUNDS			FEDERAL INSURANCE COMPANY Incorporated under the laws of Indiana, a stock insurance company, herein called the COMPANY
680 NEWPORT DRIVE, SUITE 250 NEWPORT BEACH, CAL 92660
			Capital Center, 251 North Illinois, Suite 1100 Indianapolis, IN 46204-1927


ITEM 1.	BOND PERIOD: from 12:01 a.m. on July 1, 2006

to 12:01 a.m. on July 1, 2007


ITEM 2.	AGGREGATE LIMIT OF LIABILITY: $25,000,000


ITEM 3.	SINGLE LOSS LIMIT OF LIABILITY: $25,000,000


ITEM 4.	DEDUCTIBLE AMOUNT: $250,000


ITEM 5.	PRIMARY BOND:


Insurer:			National Union Fire Insurance Company of Pittsburgh, PA
Form and Bond No.:			6213820
Limit:			$25,000,000
Deductible:			$250,000
Bond Period:			July 1, 2006 to July 1, 2007


ITEM 6.	COVERAGE EXCEPTIONS TO PRIMARY BOND:

NOTWITHSTANDING ANY COVERAGE PROVIDED BY THE PRIMARY BOND, THIS EXCESS BOND DOES NOT DIRECTLY OR INDIRECTLY COVER: None


ITEM 7.	TOTAL OF LIMITS OF LIABILITY OF OTHER UNDERLYING BONDS, EXCESS OF PRIMARY BOND: None


ITEM 8.	THE LIABILITY OF THE COMPANY IS ALSO SUBJECT TO THE TERMS OF THE FOLLOWING ENDORSEMENTS EXECUTED SIMULTANEOUSLY HEREWITH : 1 -California Premium Endorsement

IN WITNESS WHEREOF, THE COMPANY issuing this Bond has caused this Bond to be signed by its authorized officers, but it shall not be valid unless also signed by a duly authorized representative of the Company.



Secretary			President
November 8, 2006
Date			Authorized Representative


		The COMPANY, in consideration of the required premium, and in reliance on the statements and information furnished to the COMPANY by the ASSURED, and subject to the DECLARATIONS made a part of this bond and to all other terms and conditions of this bond, agrees to pay the ASSURED for:


Insuring Clause		Loss which would have been paid under the Primary Bond but for the fact the loss exceeds the Deductible Amount.


		Coverage under this bond shall follow the terms and conditions of the Primary Bond, except with respect to:


		a.	The coverage exceptions in ITEM 6. of the DECLARATIONS; and


		b.	The limits of liability as stated in ITEM 2. and ITEM 3. of the DECLARATIONS.


		With respect to the exceptions stated above, the provisions of this bond shall apply.


General Agreements


Change Or Modification Of Primary Bond	A.	If after the inception date of this bond the Primary Bond is changed or modified, written notice of any such change or modification shall be given to the COMPANY as soon as practicable, not to exceed thirty (30) days after such change or modification, together with such information as the COMPANY may request. There shall be no coverage under this bond for any loss related to such change or modification until such time as the COMPANY is advised of and specifically agrees by written endorsement to provide coverage for such change or modification.


Representations Made By Assured	B.	The ASSURED represents that all Information it has furnished to the COMPANY for this bond or otherwise is complete, true and correct. Such information constitutes part of this bond.


			The ASSURED must promptly notify the COMPANY of any change in any fact or circumstance which materially affects the risk assumed by the COMPANY under this bond.


			Any misrepresentation, omission, concealment or incorrect statement of a material fact by the ASSURED to the COMPANY shall be grounds for recision of this bond.


Notice To Company Of Legal Proceedings Against Assured – Election To Defend	C.	The ASSURED shall notify the COMPANY at the earliest practical moment, not to exceed thirty (30) days after the ASSURED receives notice, of any legal proceeding brought to determine the ASSURED’S liability for any loss, claim or damage which, if


General Agreements (continued)


Notice To Company Of Legal Proceedings Against Assured – Election To Defend (continued)		established, would constitute a collectible loss under this bond or any of the Underlying Bonds. Concurrent with such notice, and as requested thereafter, the ASSURED shall furnish copies of all pleadings and pertinent papers to the COMPANY.


		If the COMPANY elects to defend all or part of any legal proceeding, the court costs and attorneys’ fees incurred by the COMPANY and any settlement or judgment on that part defended by the COMPANY shall be a loss under this bond. The COMPANY’S liability for court costs and attorneys’ fees incurred in defending all of part of such legal proceeding is limited to the proportion of such court costs and attorneys’ fees incurred that the amount recoverable under this bond bears to the amount demanded in such legal proceeding.


		If the COMPANY declines to defend the ASSURED, no settlement without the prior written consent of the COMPANY or judgment against the ASSURED shall determine the existence, extent or amount of coverage under this BOND, and the COMPANY shall not be liable for any costs, fees and expenses incurred by the ASSURED.


Conditions And Limitations


Definitions	1.	As used in this bond:


			a.	Deductible Amount means the amount stated in ITEM 4. of the DECLARATIONS. In no event shall this Deductible Amount be reduced for any reason, including but not limited to, the non-existence, invalidity, insufficiency or uncollectibility of any of the Underlying Bonds, including the insolvency or dissolution of any Insurer providing coverage under any of the Underlying Bonds.


			b.	Primary Bond means the bond scheduled in ITEM 5. of the DECLARATIONS or any bond that may replace or substitute for such bond.


			c.	Single Loss means all covered loss, including court costs and attorneys’ fees incurred by the COMPANY under General Agreement C, resulting from:


		(1)	any one act of burglary, robbery or attempt either, in which no employee of the ASSURED is implicated, or


		(2)	any one act or series of related acts on the part of any person resulting in damage to or destruction or misplacement of property, or


Conditions And Limitations (continued)


Definitions (continued)	(3)	all acts other than those specified in c.(1) and c.(2), caused by any person or in which such person is implicated, or


		(4)	any one event not specified above, in c.(1), c.(2) or c.(3).


			d.	Underlying Bonds means the Primary Bond and all other insurance coverage referred to in ITEM 7. of the DECLARATIONS.


Limit Of Liability Aggregate Limit Of Liability	2.	The COMPANY’S total cumulative liability for all Single Losses of all ASSUREDS discovered during the BOND PERIOD shall not exceed the AGGREGATE LIMIT OF LIABILITY as stated in ITEM 2. of the DECLARATIONS. Each payment made under the terms of this bond shall reduce the unpaid portion of the AGGREGATE LIMIT OF LIABILITY until it is exhausted.


		On exhausting the AGGREGATE LIMIT OF LIABILITY by such payments:


			a.	the COMPANY shall have no further liability for loss or losses regardless of when discovered and whether or not previously reported to the COMPANY, and


			b.	the COMPANY shall have no obligation under General Agreement C. to continue the defense of the ASSURED, and on notice by the COMPANY to the ASSURED that the AGGREGATE LIMIT OF LIABILITY has been exhausted, the ASSURED shall assume all responsibility for its defense at its own cost.


		The unpaid portion of the AGGREGATE LIMIT OF LIABILITY shall not be increased or reinstated by any recovery made and applied in accordance with Section 4. In the event that a loss of property is settled by indemnity in lieu of payment, then such loss shall not reduce the unpaid portion of the AGGREGATE LIMIT OF LIABILITY.


Single Loss Limit Of Liability		The COMPANY’S liability for each Single Loss shall not exceed the SINGLE LOSS LIMIT OF LIABILITY as stated in ITEM 3. of the DECLARATIONS or the unpaid portion of the AGGREGATE LIMIT OF LIABILITY, whichever is less.


Discovery	3.	This bond applies only to loss first discovered by the ASSURED during the BOND PERIOD. Discovery occurs at the earlier of the ASSURED being aware of:


			a.	facts which may subsequently result in a loss of a type covered by this bond, or


Conditions And Limitations (continued)


Discovery (continued)	b.	an actual or potential claim in which it is alleged that the ASSURED is liable to a third party,


			regardless of when the act or acts causing or contributing to such loss occurred, even though the amount of loss does not exceed the applicable Deductible Amount, or the exact amount or details of loss may not then be known.


Subrogation-Assignment-Recovery	4.	In the event of a payment under this bond, the COMPANY shall be subrogated to all of the ASSURED’S rights of recovery against any person or entity to the extent of such payments. On request, the ASSURED shall deliver to the COMPANY an assignment of the ASSURED’S rights, title and interest and causes of action against any person or entity to the extent of such payment.


		Recoveries, whether effected by the COMPANY or by the ASSURED, shall be applied net of the expense of such recovery, first, to the satisfaction of the ASSURED’S loss which would otherwise have been paid but for the fact that it is in excess of the AGGREGATE LIMIT OF LIABILITY, second, to the COMPANY in satisfaction of amounts paid in settlement of the ASSURED’S claim and third, to the ASSURED in satisfaction of the DEDUCTIBLE AMOUNT. Recovery from reinsurance and/or indemnity of the COMPANY shall not be deemed a recovery under this Section.


Cooperation Of Assured	5.	At the COMPANY’S request and at reasonable times and places designated by the COMPANY the ASSURED shall:


			a.	submit to examination by the COMPANY and subscribe to the same under oath, and


			b.	produce for the COMPANY’S examination all pertinent records, and


			c.	cooperate with the COMPANY in all matters pertaining to the loss.


		The ASSURED shall execute all papers and render assistance to secure to the COMPANY the rights and causes of action provided for under this bond. The ASSURED shall do nothing after loss to prejudice such rights or causes of action.


Termination	6.	This bond terminates as an entirety on the earliest occurrence of any of the following:


			a.	sixty (60) days after the receipt by the ASSURED of a written notice from the COMPANY of its decision to terminate this bond, or


Conditions And Limitations (continued)


Termination (continued)	b.	immediately on the receipt by the COMPANY of a written notice from the ASSURED of its decision to terminate this bond, or


			c.	immediately on the appointment of a trustee, receiver or liquidator to act on behalf of the ASSURED, or the taking over of the ASSURED by State or Federal officials, or


			d.	immediately on the dissolution of the ASSURED, or


			e.	immediately on exhausting the AGGREGATE LIMIT OF LIABILITY, or


			f.	immediately on expiration of the BOND PERIOD, or


			g.	immediately on cancellation, termination or recision of the Primary Bond.


Conformity	7.	If any limitation within this bond is prohibited by any law controlling this bond’s construction, such limitation shall be deemed to be amended so as to equal the minimum period of limitation provided by such law.


Change Or Modification Of This Bond	8.	This bond or any instrument amending or affecting this bond may not be changed or modified orally. No change in or modification of this bond shall be effective except when made by written endorsement to this bond signed by an Authorized Representative of the COMPANY.

FEDERAL INSURANCE COMPANY

Endorsement No: 1

Bond Number: 81866024

NAME OF ASSURED: PIMCO FUNDS.

PREMIUM ENDORSEMENT

It is agreed that:


1.	The premium for this bond for the period July 1, 2006 to July 1, 2007 is: Premium: SIXTY ONE THOUSAND DOLLARS ($61,000)


2.	It is further agreed that this premium is subject to change during this period if amendments are made to this bond at the request of the ASSURED.

This Endorsement applies to loss discovered after 12:01 a.m. on July 1, 2006.

ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.

PIMCO FUNDS Date: November 8, 2006

MARSH USA, INC (FINPRO-NEWPORT BEACH)

FEDERAL INSURANCE COMPANY