CNA INSURANCE COMPANIES
[LETTERHEAD]
Continental Casualty Company
[LETTERHEAD]
Policy Number, SR-83099599
Application is hereby made to the Continental Casualty Company for a policy of
group disability income insurance based on the following statements and
representations:
1. Employer: The Morgan Group, Inc.
Address: 2746 US 20 West
City: Elkhart State: IN Zip Code: 46514
Nature of Business: Transportation Services
2. What period of time must elapse before an employee is eligible
for this coverage?
Present Employees: 0 days New Employees: 0 days
The following group or groups of employees are eligible:
DESCRIPTION OF ELIGIBLE EMPLOYEES
Class 1: All active, full-time* Officers and Management.
Class II: All active, full-time* Employees excluding Truck Drivers,
Warehouse Employees, Officers and Management.
*"Active, full-time" means an employee works at least 30 hours per week.
Part-time, temporary or seasonal employees are not eligible.
3. Total Number of Employees on Payroll: 341 Total Number Eligible: 341
4. Insured Employee Occupation Period: Class 1: To the end of the Maximum
Period Payable.
Class 11: 24 months
5. Premium is calculated by: SEE ADDENDUM 1.
6. Premium is payable in the following manner: SEE ADDENDUM 1.
7. What percent of the premium is to be paid by the Employer? 100%
8. This policy shall be made effective at 12:01 A.M., Standard Time at the above
address of the Employer on January 1, 1998.
The insurance of Employees who become eligible after the effective date of this
policy shall become effective on the first day of the month that falls on or
next follows the date the employee becomes eligible for this insurance.
9. Schedule of Benefits MONTHLY BENEFIT 67% of the Insured Employee's
salary (1) or $10,000, whichever is the lesser amount, minus the
reductions in (2) below.
60% of the Insured Employee's salary (1) or $4,000, whichever is the
lesser amount, minus the reductions in (2) below.
MAXIMUM PERIOD PAYABLE
See Addendum 3.
ELIMINATION PERIOD
180 days
Includes Features Checked
[ ] PARTIAL DISABILITY BENEFIT - REDUCTION.
[ ] REHABILITATIVE EMPLOYMENT BENEFIT - REDUCTION:
[X] RESIDUAL DISABILITY BENEFIT
[X] SURVIVOR INCOME BENEFIT - MAXIMUM PERIOD PAYABLE: 6 MONTHS
[ ] COST OF LIVING ADJUSTMENT BENEFIT
(1) See Addendum 2
(2) See Addendum 2
AGENT OR BROKER EMPLOYER
Name of Firm: Financial Name: Lyle C. Haws
Partners, Inc. ----------------------
(please print)
Name of agent or
broker (please print): Title: VP-Human Resources
Melvin Jacobson
Signature: /s/ Melvin Jacobson Signature: /s/ Lyle C. Haws
-------------------
Date: March 30, 1998 Date: March 9, 1998
ADDENDUM 1 SR-83099599
Policy Number
The Morgan Group, Inc. January 1, 1998
Employer Effective Date
5. Premium is calculated by:
Multiplying the total insured salary by .0033. Do not include salary for any
individual in excess of per month in the premium calculation.
Class I: $15,000
Class II: $ 6,667
6. Premium is payable in the following manner:
The policy is issued in consideration of the payment in arrears of the monthly
premium. The monthly premium is calculated at the premium rate stated above.
Such payment shall be made within 20 days after the end of each monthly premium
accounting period and shall be accompanied by a premium adjustment report.
If an addition, termination or change in insurance takes place other than on a
regular due date, any premium adjustment will take effect on the next due date.
If notice of termination or change is received more than six months after the
termination or change became effective, We are not required to give a refund or
credit for the period in excess of six months.
"Salary" as used in Statements 5 and 6 shall mean the monthly wage or salary
paid to the Insured Employee by the Employer excluding commissions, overtime
earnings, incentive pay, bonuses or other compensation.
ADDENDUM 2 SR-83099599
Policy Number
The Morgan Group, Inc. January 1, 1998
Employer Effective Date
(1) "Salary" means the monthly wage or salary that the Insured Employee was
receiving from the Employer on the date the Disability began. It
excludes commissions, overtime earnings, incentive pay, bonuses or other
compensation.
(2) The Monthly Benefit under this policy shall be reduced by:
1. Disability benefits paid, payable, or for which there is a
right under:
a. The Social Security Act, including any amounts for
which the Insured Employee's dependents may qualify
because of the Insured Employee's Disability,
b. Any Workers Compensation or Occupational Disease Act
or Law, or any other law which provides compensation
for an occupational injury or sickness, or
c. Any State Disability Benefit Law:
2. Disability benefits paid under:
a. Any group insurance plan provided by or through the
Employer:
b. Any formal sick leave plan provided by the Employer;
c. Any Retirement Plan provided by the Employer; or
3. Retirement benefits paid under the Social Security Act
including any amounts for which the Insured Employee's
dependents may qualify because of the Insured Employee's
retirement;
4. Retirement benefits paid under a Retirement Plan provided by
the Employer except for amounts attributable to the Insured
Employee's contributions.
If any benefit described above is paid in a single sum through
compromise settlement or as an advance on future liability, the amount
which pertains to the Insured Employee's Disability will be divided by
the number of months from the date of its receipt to the end of the
benefit period applicable to the Insured Employee. The result shall be
deducted from the Insured Employee's Monthly Benefit.
The Monthly Benefit, after the reductions stated above, if any, will
not be further reduced for subsequent cost-of-living increases which
are paid, payable, or for which there is a right under any other
benefit described above.
"Retirement Plan" means a plan which provides retirement benefits to
employees and is not funded wholly by employee contributions. It does
not include: 1) a profit sharing plan, a thrift or savings plan; 2) an
individual retirement account (IRA); 3) a tax sheltered annuity (TSA);
4) a stock ownership plan; or 5) a deferred compensation plan.
In no event will the Monthly Benefit payable for Total Disability (but
not for Residual Disability) be reduced to less than $100 or 10% of
the Insured Employee's Monthly Benefit prior to the reductions stated
above, whichever is greater.
ADDENDUM 3
The Morgan Group, Inc.
Employer
Applicable to Class 1:
MAXIMUM PERIOD PAYABLE
Age on Date
Disability Commences
61 years or younger
62 years
63 years
64 years
65 years
66 years
67 years
68 years
69 years or older
Applicable to Class II:
65 years
66 years
67 years
68 years
69 years or older
SR-83099599
Policy Number
January 1, 1998
Effective Date
To the Insured Employee's 65th birthday
42 months
36 months
30 months
24 months
21 months
18 months
15 months
12 months
24 months
21 months
18 months
15 months
12 months
ADDENDUM 4 SR-83099599
Policy Number
The Morgan Group, Inc. January 1, 1998
Employer Effective Date
Listed below are the Subsidiaries and/or Affiliates insured under this policy:
Morgan Drive Away
Interstate Indemnity
Transfer Drivers, Inc. (T.D.I.)
Morgan Financial, Inc.