# Letter

**GEO. F. BROWN & SONS, INC.**
**INSURANCE MANAGERS**

**123 WILLIAM STREET • NEW YORK, NEW YORK 10038 • 212/227-1366**

**August 25th, 1970**

**Mr. Bud Smith**
**Lexington Insurance Company**
**25 New Chardon Street**
**Boston, Massachusetts**

**International Business Machines Corp.**
**Policy Number GC 402875**

Dear Bud:

We have received and reviewed the captioned contract and find that the named Insured is incorrect as stated. It should read as follows:

"International Business Machines Corporation, IBM World Trade Corporation, The Service Bureau Corporation and any other subsidiary or affiliated corporation of each provided such other subsidiary or affiliated corporation warrants that it is under the same operative and financial control through the identity of its officers, directors and stockholders"

The policy also contains Errors and Omissions wording under endorsement number two which is totally unacceptable to the Broker and Insured. The restrictive wording is too broad in that it takes away coverage afforded by the primary and other underlying insurances. For example, Malpractice insurance is provided by the underlying endorsements but the wording of endorsement number two negates coverage.

The lead carrier, the Continental Insurance Company, incorporates the following wording on its contract which we find acceptable and feel should be used in place of the present wording under the captioned.