SAE AT RISK - Risk Management Manual
Table of Contents
The Challenge 2
Getting Started 3
Risk Management Policies 4
Risk Management Policies (cont.) 5
Who Does What in Risk Management 6
10 Steps for Responsible Social Planning 7
Alcohol Education 8
Alcohol’s Influence on Greek Life 9
Alcohol Poisoning/Emergency Procedures 10
Crisis Management - What to do 11
Incident Report Form 12
Incident Report Form (cont.) 13
Graphic - 10 States with Most Losses 14
Graphic - Claims Frequency Pie Chart 15
Hazing – Definition Test 16
Hazing – Myths and Facts 17
Eliminate Hazing? – Here’s how to get started 18
Successful Pledge Education – Self Test 19
Sexual Assault 20
Sexual Assault – Myths and Facts 21
Sexual Assault – Prevention Ideas 22
Chapter Property Information 23
Property Management Checklist 24
Fire Safety – Self Test 25
Closing the Chapter House during Vacations 26
Insurance Program Coverage 27
Insurance Program – Policy Exclusions 28
Insurance Program – Policy Exclusions (cont.) 29
The Sigma Alpha Fraternity is asking each Chapter and House
Corporation to develop and implement a comprehensive risk
management program at the chapter level. Since the
Fraternity is not in the position to “micro-manage” risk management
programs for over 200 chapters, we must rely on our chapter officers
and alumni volunteers.
Chapter leaders should realize that the ultimate goal of our risk
management program is to achieve the safest environment possible
for our brothers and guests. Information presented in this manual
indicates the perilous position of our Fraternity. We can improve this
situation, and this section outlines steps alumni and actives can take
to institute a safe, responsible social program.
In addition to the Risk Management Policies adopted by Sigma
Alpha Epsilon, each chapter is expected to comply with federal,
state and local laws. Many colleges and universities have also
adopted policies for fraternities. Your compliance with your host
institution’s guidelines and all laws is mandatory.
1. Elect a Risk Manager to the Executive Council. You are in
violation of the Fraternity Laws without one.
2. Develop a Risk Management Program. Use this manual,
campus resources and other information to tailor an effective
social program for your chapter.
3. Make Risk Management Training a part of every
Pledge Program. Teaching and counseling our newest
members on the potential consequences of individual and group
actions is critical.
4. Meet Regularly with your Greek Advisor. Ensure that
you fully comply with university policies and utilize campus
resources. Have your Greek Advisor review your chapter’s social
program and give feedback.
5. Conduct Annual Social Awareness Seminars. Make sure
every brother is familiar with the Alcohol Policies of SAE, as
well as university policies and state and local laws.
6. Prevent Problems. Implement a plan of action to correct
property and life-safety hazards, and to ensure member safety.
Risk Management Policies of SAE
1. The possession, use and/or consumption of ALCOHOLIC
BEVERAGES, while on chapter premises, during an official
Fraternity event, or in any situation sponsored or endorsed by
Sigma Alpha Epsilon Fraternity, must be in compliance with any
and all applicable laws of the state, county, city and university.
This includes the laws regarding the serving of alcoholic beverages
2. SALE OF ALCOHOL by any chapter of Sigma Alpha Epsilon is
strictly forbidden. This is to include any action that can be
remotely construed as alcohol sale such as: charging admission to
parties, passing the hat, selling empty cups and selling drink
3. The possession, sale and/or use of any ILLEGAL DRUGS OR
CONTROLLED SUBSTANCES at any SAE house or
sponsored event that would allow a normal observer to view one
as associated with the fraternity is strictly prohibited and will be
grounds for immediate expulsion of those involved.
4. Each chapter will instruct members and pledges on the drinking
age laws, regulation of sale laws, open container laws and other
laws pertinent to chapter’s jurisdiction, specifically dramshop
liability, implied consent, and host liquor liability. The chapter
shall also provide instruction with the goal of engendering in each
member a sense of responsibility toward the welfare of those who
consume alcohol. The chapter shall further teach the
encouragement of intervention to prevent any person from drinking
to excess, or from engaging in any potentially dangerous activity,
including driving a motor vehicle while under the influence of
alcohol. The chapter must provide instruction on emergency
procedures to be employed as a result of alcohol abuse.
Risk Management Policies of SAE (cont.)
5. No “GRAIN ALCOHOL” or any such distilled liquor that
exceeds 100 proof, or above 50% pure grade alcohol per volume,
is to be served in any form or mixture during a fraternity sponsored
6. All recruitment and/or post pledging activities may not include
alcohol, especially “BID NIGHT.”
7. OPEN PARTIES, meaning those with unrestricted access, and
without specific invitation, shall be prohibited.
8. NO PURCHASE OF ALCOHOLIC BEVERAGES WITH
CHAPTER FUNDS. This includes the purchase of kegs of beer.
All alcoholic beverages consumed at SAE chapter functions must
be brought by the individual brothers attending the function or
through a cash bar operated by the licensed establishment where
the function is held.
9. THE PURCHASE OR USE OF A COMMON SOURCE OF
ALCOHOL SUCH AS KEGS, PARTY BALLS, PUNCH,
ETC. IS PROHIBITED. Chapters may hire a licensed,
professional catering service with certified bartenders, which may
utilize common containers. Any service retained must have
general liability and liquor liability insurance policies.
* These restrictions have been added to SAE Risk Management
Policies for clarification.
10. No Drinking Games
11. No Shots or Shooters
12. No Glass Bottles Permitted
13. No Forced Drinking
14. No Beer Funnels or Beer Bongs
Who does What in Risk Management
•Conducts periodic inspections of the chapter house and grounds
•Assists chapter officers with risk management policies and procedures
•Reports any incident or property/liability claims to SAE’s fraternity
•Oversees development and implementation of risk reduction policies and
•Assists the risk manager, social chairman and house manager with risk
•Takes the lead in crisis situations
•Knows campus and Greek alcohol policies
•Assures that Fraternity alcohol policies are reviewed by the chapter
•Conducts periodic inspections of chapter house/grounds
•Ensures compliance with health, fire and safety codes
•Coordinates and advises each officer on risk management
•Works with officers to implement carding, security and alcohol controls for all
•Assists with pledge instruction concerning risk management awareness
•Knows SAE policies on alcohol and social functions
•Consults with Risk Manager prior to all SAE functions
•Plans for member/guest safety at social functions
•Know Fraternity policies as well as chapter by-laws
•Cooperate with officers concerning risk reduction policies and procedures
•Conduct themselves as “True Gentlemen”
10 Steps for Responsible Social Planning
1. Card everyone attending a function where drinking may occur. Never allow
underage members or guests to drink at any event.
2. Consider hiring professional security staff to assist the chapter with:
a) overseeing the function
b) uninvited guests
c) collecting car keys/calling taxis
d) carding invited guests
3. Never promote or sponsor a function where SAE may be interpreted as selling
a) selling drink tickets
b) selling empty cups
c) charging for “all you can drink”
d) hosting an event in conjunction with a local bar or alcohol distributor
4. Serve non-alcoholic beverages and provide food for members and guests.
5. Do Not promote alcohol as the center of the party or allow members or guests to
engage in drinking games.
6. Provide transportation or taxis for members and guests who have had too much to
7. Remember over-indulgence of alcohol must not be allowed. Remember our
Fraternity policies including:
a) no grain alcohol
b) dry recruitment and post pledging activities, especially during “Bid Night”
c) no open parties
d) no purchase of alcohol with chapter funds
8. Establish a time limit for the party. Four hours should be a guideline.
9. Discourage “road trips” emphasizing the use of alcohol while driving.
10. Educate the chapter by bringing in guest speakers and alcohol awareness
The “Golden” Rule
Use Common Sense!
Consider the consequences of your actions. NEVER be
involved in a situation you could not explain to a reasonable
Educating members on the use and misuse of alcohol is
clearly one of the most important items chapters and alumni
should address. The majority of Fraternity liability incidents
The Fraternity has adopted “no purchase of alcohol with
chapter funds” and “no keg” policies to address the problems
associated with the purchase and serving of keg beer or any
alcoholic beverages. The importance of the stance cannot be
The purchase of alcohol with Chapter Funds or collection
of money by any member of the Fraternity, or the sale of
any form of admission, or the gathering of funds is strictly
prohibited by the Fraternity and is grounds for revocation
of a Chapter Charter by the Supreme Council of SAE.
Alcohol’s Influence on Greek Life
Alcohol is involved in nearly 90% of all SAE liability
insurance claims. Alcohol is pervasive on college campuses.
Columbia University commissioned a study which surveyed
students from colleges throughout the nation. Some of the
- 95% of violent crime on campus is alcohol related
- 90% of all reported campus rapes occur when alcohol
is used by assailant, victim or both
- 80% of all campus vandalism is alcohol related
- Students living in fraternities and sororities report
drinking three times more than other students
- Three times more college women reported drinking to
get drunk than in 1977
- Poor Grades correlate with alcohol use:
Grade Average #Drinks per Week
Procedures for someone who has had
too much to drink.
Of course, the best procedure is prevention. Don’t allow social
functions to get out of control with alcohol. Play close attention to
the behavior of brothers and guests.
Look for signs and symptoms
• Unable or difficult to arouse
• Slowed, stopped or irregular breathing
• Bluish fingernails, lips and gums
Action to be taken
If there is any doubt as to whether or not the individual is merely
passed out or seriously overdosed, do not hesitate to get medical help!
• Lay person on side if asleep or passed out. Do not allow
the individual to sleep on his or her back. Have someone
stay with the person.
• Induce vomiting if conscious and feeling sick. Never
induce vomiting in a semi-conscious or unconscious person.
• Monitor breathing; proceed with artificial respiration if
• Always keep emergency numbers for ambulance,
hospital and police posted by the chapter house phone.
Crisis Management - What to do
1. The Eminent Archon should take charge in every emergency situation. If
the E.A. is not available, the next ranking officer should take charge.
2. The E.A.’s first phone call should be to emergency officials if necessary -
911 in most communities. Make certain emergency phone numbers are
located near each telephone in the house.
3. Notify an alumni advisor of the events as soon as possible. Also, as soon as
practicable, report the incident to the:
SAE Fraternity Office
4. Close the chapter house at once. Permit only members and appropriate
officials to remain on the house and grounds.
5. In case of fire, have a predesignated meeting place away from the building.
Take a head count and report any missing members to fire officials at once.
6. The E.A. should gather the facts of the incident as soon as possible. Never
speculate or engage in rumor spreading.
7. Also, as soon as possible, assemble the chapter. Remind the members to:
a.) stay calm
b.) follow instructions
c.) not make statements outside the chapter - with the exception of
d.) not speculate or spread rumors
e.) be aware the E.A. is the chapter’s sole spokesman and he will keep
them apprised of all developments
f.) do not admit/accept fault or liability for the incident without the
advice of an attorney
Sigma Alpha Epsilon Fraternity
Incident Report Form
(Call Fraternity Headquarters with this information within 24 hours of incident.)
Chapter Name: School Name:
Chapter Address: Chapter Phone:
Person making report: Your Title or Relationship to Fraternity:
Your Phone No.: Your Address:
DATE OF INCIDENT: TIME OF INCIDENT:
DATE REPORTED TO NATIONAL: DATE REPORTED TO INSURANCE CO:
Location and Street Address of Incident:
On premises or off-premises:
Was alcohol involved in this incident?:
DESCRIPTION OF WHAT HAPPENED AND WHO WAS INVOLVED:
Member or Non Member?: Member or Non Member?:
Street Address: Street Address:
WITNESS(ES) (Use additional page if necessary):
Street Address: Street Address:
WAS A POLICE REPORT MADE: CHAPTER COUNSELOR
Police Department: Name:
Police Department Telephone: Street Address:
Officer Name: City/State/Zip
Report #: Telephone:
SEND 1 COPY TO SIGMA ALPHA EPSILON HQ KEEP 1 COPY FOR CHAPTER
PO Box 1856, Evanston, IL 60204 SEND 1 COPY TO YOUR CHAPTER COUNSELOR
Fax: (847) 475-2250
Top Ten States with the Most Losses (1988-1998)
0 2 4 6 8 10 12 14 16 18 20 22 24 26
Number of Claims
Help us keep your state out of the top ten!
Claims Frequency by Category (1988-1998)
V eh i cl e A cci d en t T h ro w n O b ject
S h o o ti n g
S ex u al A s s au l t A l co h o l P o i s o n i n g
P ro p erty D am age
A s s au l t
P rem i s es L i ab i l i ty
P ran k
M i s c.
A th l eti c
H az i n g
H aras s m en t
1% F al l
Hazing - Definition Test
Hazing is “any activity which endangers the mental health, physical
well-being, dignity, safety or rights of any individual.”
Hazing Hotline: 800-233-1856, EXT. 399
You should be concerned if your chapter:
• Transports an individual against his will
• Prevents sleep or class attendance
• Forces anyone to eat or drink against his will
• Requires acts of servitude
• Stages any form of “line up”
• Paddles or Strikes in any manner
• Makes anyone engage in public stunts of buffoonery
• Forces physical stunts or calisthenics
• Blindfolds or “Road Trips” for any purpose
• Conducts a “hell” week
• Confines anyone against his will
* Remember - IF YOU KNOW ABOUT HAZING, BUT DO NOT REPORT IT, YOU ARE GUILTY OF
Hazing - Myths and Facts
Myth 1: Hazing builds pledge class unity; so do most prisons. The truth is
hazing alienates the fraternity’s newest members from the initiated chapter.
Myth 2: Hazing motivates pledges. To do what? Hate their brothers, break
state laws and jeopardize the chapter’s existence. Other constructive and legal
means of motivation need to be utilized.
Myth 3: We’ve always done it this way. An excuse used by backward thinking
men throughout time. Be leaders and implement positive change.
Myth 4: I had to go through it. The sins of the past do not justify the actions of
the present. The Marines, the Service Academies and major college football
teams have abolished hazing of new recruits. The fraternity world must follow
Fact 1: Hazing hinders scholastic achievement, lessens self esteem and causes
Fact 2: Hazing increases the likelihood of bodily injury or death.
Fact 3: Hazing can put you in jail. It’s against the law in most states.
Fact 4: Hazing threatens your badge, your diploma and your chapter’s charter.
Fact 5: Hazing could eliminate your insurance coverage. No liability insurance
policy will cover intentional acts.
Eliminate Hazing? –
Here’s how to get started
Information - Give each pledge a written copy of the pledge program schedule.
Include events, dates, assignments, information on dues, initiation fees, grade
requirements, meeting dates and times. This syllabus also insures the pledge
educator has organized the program in advance.
Develop Leadership - Allow pledges to plan and implement their own projects
and activities - make suggestions and give options rather than orders. Consider
several smaller projects and activities rather than one, enabling a wider range of
leadership development. Establish pledge class offices and allow those offices
the authority to complete tasks and projects.
Build Chapter Unity - Not Pledge Class Unity! - Pledge-active sports events
with mixed teams of actives and pledges. Big brothers help pledges with
assigned house duties. If signatures are required, utilize equality - require
actives to acquire pledge signatures. Avoid pledge class distinction and
University Involvement - Invite representatives from all school areas to
address the pledge class. Encourage each pledge to be involved in at least two
Retreats - Weekend camping trips, hikes, canoe trips, beach trips, etc., are
tremendously effective in building unity. Discuss chapter strengths,
weaknesses, goals, future plans, etc. The most successful retreats are held away
from campus and school distractions.
Promote Scholarship - Invite university speakers to discuss test-taking skills,
study methods, how to succeed in college, etc. Designate quiet hours at the
house. Set up study halls. Utilize university tutoring services.
Successful Pledge Education –
Does your chapter have/use:
• A stated purpose or a list of objectives (for example: assimilation into the
chapter and education in the procedures and history of the Fraternity)
• A list of the requirements for initiation
• A syllabus or calendar of events (for each brother, pledge and parent)
• A specific beginning and ending date, congruent with the Fraternity and
university policy (the dates should be known by everyone)
• A definition of and position statement on hazing
• Programming including:
- Time Management and Scholarship
- Chapter and Fraternity History
- Chapter Operations
- University Orientation
- Social or Men’s Health Issues
- Leadership Development
- Campus Involvement
• An organized procedure to review the pledges’ success and address any
• An opportunity to for the pledges to participate in other campus
• An appropriate pre-initiation program
• An opportunity for the pledges to give feedback on the program and to
Sexual assault is a violent physical or verbal attack of a sexual
nature. It includes, but is not limited to:
• Stranger rape
• Acquaintance or date rape
• Gang rape
• Statutory rape
Criminal laws vary from state to state; however a commonly
accepted definition is:
• Forced sex against the will of the victim
• Sex with a person unable to resist or give consent
( i.e. due to alcohol, drugs, age, mental
A survey of 7,000 students among 35 colleges revealed:
• 52% of the women had experienced sexual
• 1 in 8 women had been victims of rape
• 1 in 4 women had experienced an attempted rape
• 1 in 12 men admitted to having fulfilled the
definition of rape or attempted rape although
none considered themselves a rapist
Sexual Assault - Myths and Facts
Myth 1: Rape is an impulsive, uncontrollable act of sexual
gratification or lust
Fact: Between 60% and 70% of all rapes are planned in advance.
Another 10% are partially planned. Also, one important emotional
payoff for the rapist is to be in control, not out of control. Many
rapists have readily available sexual outlets, and over half are married
at the time of attack. The primary motive displayed by most
convicted rapists is not sex, it is aggression, dominance, and anger.
Myth 2: No woman can be raped against her will.
Fact: The first concern of a rape victim is to survive the attack. No
one but the victim can know what she is capable of doing, what the
danger is and what methods might succeed. A victim should not be
criticized for doing what she feels she must in order to save her life or
avoid serious bodily injury.
Myth 3: Most rapes occur when women are out alone at night.
Fact: Depending on the study, statistics indicate that between 33%
and 66% of rapes occur in either the victim’s home or in some other
private residence. Rapes occur at all hours of the day or night.
Anyone, regardless of residence, social or economic class, age,
appearance, or other factors, can be a victim of rape.
Myth 4: Women “ask” for rape by acting or dressing
Fact: Rape is an attack where the victim’s life is controlled by the
attacker; no woman’s dress or behavior gives anyone the right to
sexually assault her.
Sexual Assault - Prevention Ideas for
Chapters and Individuals
• Invite guest speakers on sexual relations and rape to chapter
• Hold a joint meeting on this subject with a sorority - listen
to the female perspective.
• Review this section of the manual with the chapter and
pledges at least annually.
• Control your parties, limit access and hire professional
• Do not serve alcohol to members or guests.
• Know your pledges, know your members.
• Do not assume you know what your partner wants - confirm.
Be careful of the fine line between pressing someone to
have sex and forcing someone to have sex.
• Do not let your desires control your actions.
• It is OK not to “score.”
• A woman has a right to end any sexual encounter at anytime
for whatever reason.
Chapter Property Information
Chapter House Self Inspection
What to Do:
•Schedule regular inspections (see checklist)
•Walk through the property
•Make appropriate recommendations for corrections
•Develop and circulate report to members
•Budget money for necessary work
Who to involve:
•Assign people who are familiar with the property
•Involve board members and chapter members
•Hire professional help, if necessary
•Consult local fire department for assistance
•Seek assistance from campus housing authorities
Fire Inspection: Last Conducted _____________
Contact Info ________________
Health/Safety inspection: Last Conducted ______________
Property Management Checklist
• Fire Extinguishers
(Tagged, Accessible; Inspected Annually)
• Smoke Detectors Present and Working
• Exits Lighted and Marked
• Fire Escapes Clear & Accessible
• Fire Drills Held (Semi-Annually)
• Gasoline Not Stored on Premises
• Emergency Numbers Posted
• Kitchen Cleaned and Well Maintained (Daily)
• Lighting for Stairs Adequate
• Handrails for Stairs
• Boiler Room Cleaned/Locked
• Trash Removed
• Grounds well maintained (Daily)
• Panel Boards/Switchboxes Clean and Marked
Fire Safety - Self Test
Has Your Chapter:
• Developed a prearranged emergency plan of action
in case of fire
• Held unannounced fire drills to evacuate the house,
especially at night
• Cleared all emergency exits, fire escapes and
• Placed fire extinguishers of the correct kind and size
on every floor
• Placed smoke detectors in each room and
strategically around the house
• Posted emergency numbers by each telephone in the
• Reviewed the Crisis Management steps
Closing the Chapter House during
Summer and Vacations
Reality tells us keeping chapter houses open during vacations, particularly
summer vacations, does not make economic sense. If all costs associated
with summer rental were accurately tabulated: actual rent collected, utilities,
additional liability insurance, abuse, theft of chapter property, house
corporations lose money.
It is a fact.
Fraternity liability insurance does not cover non-members. Do you have
boarders on your property? Have you purchased insurance for tenant
Are the summer rents you collect being reported to the I.R.S.? As non-
member revenue, it should be reported.
Is abuse to the property greater during vacations and summer months than
during the school year?
Contact local police or campus security and let them know the house will be
vacant. Provide the authorities with a number to be called if there is a
If your house has an alarm system, have someone from the alarm company
inspect the system prior to closing and let them know the building will be
Secure all exterior doors and windows. Consider leaving all interior doors
open; a locked door to a room connotes something of value on the other
Follow all procedures of the House Corporation regarding: yard
maintenance, cancellation of all automatic deliveries, adequate exterior
lighting, turning in of keys, removal of all personal goods and proper clean-
Insurance Program Coverage
Coverage: General Coverage
Limit: $1,000,000 Occurrence Bodily Injury/Property Damage
(no annual aggregate)
$1,000,000 Occurrence / $1,000,000 Annual Aggregate
(products/completed operations/personal injury only)
SIR: $100,000 Occurrence (including expenses)
$750,000 Aggregate ($562,500 Annualized)
•1973 Occurrence Form
•Broad Form Liability Endorsement
•Personal Injury Coverage (Libel, slander, defamation)
•Contractual Liability Coverage - Blanket Intermediate Form
•Employee Benefits Liability (claims made); subject to SIR
•Additional Insureds (Blanket)
•Notice of Occurrence
•Knowledge of Occurrence
•Premium Base - Flat
•Hired & Non-Owned Automobile Coverage
•SAE’s Named Insured Endorsement
•No “set-aside” SIR Fund Required
•SIR eroded by defense costs and expenses
•Fire Legal Liability $500,000 (for up to 10 scheduled locations)
•Policy Territory includes Canada
Insurance Program - Policy Exclusions
Intentional Acts - Injuries or damages resulting from acts whose sole purpose was to
Employment Related Practices - Claims arising out of refusal to employ,
termination of employment, coercion, demotion, discipline,
Contractual Liability - Liability an insured assumes, express or implied, through a
written contract. This does not apply to an “insured contract.”
Liquor Liability - Liability of a Dram shop for actions of a 3rd party who became
intoxicated because the Dram shop provided, sold or served
Worker’s Compensation - Damages that are typically recovered under the insured’s
workers’ compensation policy.
Employers’ Liability - Damages that are typically recovered under the insured’s
employer’s liability policy.
Pollution - Damages or injuries caused by the real or threatened dispersal of
pollutants, whether intentional or not.
Asbestos - Damages, injuries or diseases caused by asbestos in any form or way.
Nuclear Energy - Damages or injuries resulting from the hazardous properties of
Watercraft or Aircraft - Damages and injuries resulting from use of watercraft to
carry persons for a fee and aircraft. Non-owned watercraft over 26
Property Damage to Insured Location - Direct physical damage to an insured
Products Recall - Cost of recalling, repairing or replacing your products and/or work.
Insurance Program - Policy Exclusions
Sexual Abuse or Assault Exclusion
It is understood and agreed General Liability Policy _________ is amended as follows:
Liability coverage and defense coverage afforded by this policy shall not apply to any
person(s) who directly causes or perpetrates sexual abuse or assault toward any person. This
exclusion applies to any claim alleging liability resulting from, or involving, the
aforementioned actions. This exclusion does not apply to those insureds who do not directly
cause, or perpetrate, the excluded action.
It is understood and agreed General Liability Policy _________is amended as follows:
Liability coverage and defense coverage afforded by this policy shall not apply to any
person(s) who directly perpetrates hazing toward any person. This exclusion applies to any
claim alleging liability resulting from, or involving, the aforementioned actions. This
exclusion does not apply to those insureds who do not directly perpetrate the excluded action.
Assault and Battery Exclusion
It is understood and agreed General Liability Policy _________is amended as follows:
Liability coverage and defense afforded by this policy shall not apply to any person(s) who
directly inflicts assault or battery upon any other person. This exclusion applies to any claim
alleging liability resulting from, or involving, the aforementioned actions. This exclusion
does not apply to those insureds who do not directly inflict the excluded action.
Alcohol and Drug Exclusion
It is hereby understood and agreed General Liability Policy ________ is amended as follows:
Liability coverage and defense coverage afforded by this policy does not apply to any
member(s) or pledge(s) who:
• purchases alcohol with chapter funds;
• sell alcohol; or
• possesses, sells or uses illegal drugs.
This exclusion applies to any claim alleging liability resulting from, or involving, the
aforementioned actions. This exclusion does not apply to those insureds who do not
participate in the excluded action.