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HomeMy WebLinkAboutProperty Policy COMMON POLICY—DECLARATIONS Renewal of Policy H633-OQOQ95-Q5 Praetorian Insurance Company 500 Park Boulevard, Suite 1350 Pol icy No. Itasca, Illinois 60143 H633-000095-06 Named Insured and Mailing Address Agent (No.,Street,Town or City,County,State,Zip Code) Town of Southold NIF Governmental Services,Inc. 53095 Main Road 103 Spring Valley Road Southold,NY 11971 Montvale,NJ 07645 12:01 A.M. Standard Time at your mailing Policy Period: From 01/01/12 to 01/01/13 address shown above. (Unless changed by the Section Declarations.) Business Description; MUNICIPALITY IN RETURN FOR THE PAYMENT OF THE PREMIUM,AND SUBJECT TO ALL THE TERMS OF THIS POLICY, WE AGREE WITH YOU TO PROVIDE THE INSURANCE AS STATED IN THIS POLICY. THIS POLICY CONSISTS OF THE FOLLOWING COVERAGE PARTS FOR WHICH A PREMIUM IS INDICATED, THIS PREMIUM MA BE SUBJECT TO ADJUSTMENT. PREMIUM Commercial Property Coverage Form $ INCLUDED Commercial Crime Coverage Form $INCLUDED Commercial Inland Marine Coverage Form $INCLUDED Commercial General Liability Coverage Form $NOT APPLICABLE Commercial Auto Coverage Form S INCLUDED Law Enforcement Liability Coverage Form $NOT APPLICABLE Employee Benefit Liability Coverage Form S NOT APPLICABLE Equipment Breakdown Coverage Form $INCLUDED NY State fire fee$ 105.76 TOTAL $37,342 Premium shown is payable$37,342 at inception; $ I"Anniversary; S 2"d Anniversary; $ Form(s)and Endorsement(s)made a part of this policy at time of issuance* :PIC Jacket(09/10), NIF 1101,NIF 1003,NIF 1104,NIF 1106 IL 0017 11198 , IL 0021 09108 ,IL0268 01/1 l , BIL-0121 01108 . *Omits applicable Forms and Endorsements if shown in specific Coverage Part/Coverage Form Declarations. By: Issue Date: 01/13/12 Author ed Representative THESE DECLARATIONS TOGETHER WITH THE COMMON POLICY CONDITIONS,COVERAGE PART DECLARATIONS, COVERAGE PART COVERAGE FORM(S)AND FORMS AND ENDORSEMENTS,IF ANY,ISSUED TO FORM A PART THEREOF,COMPLETE THE ABOVE NUMBERED POLICY_ NIF 1091 0299 COMMERCIAL PROPERTY COVERAGE FORM DECLARATIONS Effective Date: 01/01/12 Policy No: H633-000095-06 Coverage Basis: Limit of Insurance: ❑ Scheduled limits $ See Supplemental Dec X Blanket limits $ 12,386,033 ❑ First loss limit $ Schedule of Coverages X Buildings $ 12,386,033 X Business and Personal Property $ Included in Building limit X Business Income: $250,000 X Equipment Breakdown $12,386,033 X Extra Expense $included in BI limits Auto Physical Damage $ Insurance is provided only for the coverage indicated by an x and for which an amount is shown. Indemnity Basis: ❑ Actual Cash Value X Replacement Cost ❑ Inflation Guard ❑ Functional Replacement Cost Value Basis: Deductible: Co-Insurance % $SEE NIF 1116 per occurrence* Insurance to Value % $ per building Agreed Amount X $ per vehicle Self-Insured Retention: $N/A per occurrence Mortgage Holder/Loss payee; Name Cannon Business Solutions Eat,Inc c/o Premier Lease&Loan Services Address 15325 S.E. 30t`Place. Suite 140 Bellevue,WA98007 Premise/Bldg.Nos. Forms and Endorsements: CP0010(06/07), CP1030(06/07),NIF 1113(07/09),NIF 1114(07/09), NIF 1034,NIF 1038R,NIF 1161, IL0952(03/08),IL0415(04/98), CP0164(03/09) Premium: $included NIF 1101 03/99 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. GENERAL CHANGE ENDORSEMENT TOWN OF SOUTHOLD H633-000095-06 Policy changes are indicated by an [x]. [ ] Named Insured amended to read as shown below. [ ] Address of Named insured amended [ ] Premium or rates amended as shown below. to read as shown below. [ ] Premium basis is amended to read as shown below. [ ] Policy period amended as shown below. [ ] Total advance premium amended as shown below. [ ] Limit(s) of insurance amended to [ ] Location(s) shown below are added to policy. read as shown below. [ ] Items(s) listed below are added to schedule. [ ] Description of property amended to [ ] Forms and endorsements listed below are made read as shown below. part of this policy. [ ] Location(s) shown below deleted [ ] Item(s) listed below deleted from schedule. from policy. [X] Other as shown below. [ ] Policy conditions amended as shown below. Effective 1/1/2012 PROPERTY DEDUCTIBLE ENDORSEMENT for the peril of equipment breakdown $5,000 for the perils of earthquake, flood & mold $25,000 each occurrence/all other perils $5,000 Premium payable at endorsement effective date $ [ ] Additional [ ] Return Premium Installments are amended as follows: Date Amount Due All other terms and conditions remain unchanged. Endt# NIF 1116 0399 PUBLIC ENTITY PROPERTY COVERAGE FORM COVERAGE EXTENSIONS AMENDATORY ENDORSEMENT H633-000095-06 This endorsement modifies insurance provided under the following: BUILDING AND PERSONAL PROPERTY COVERAGE FORM CAUSES OF LOSS SPECIAL FORM The following Coverage Extensions and Additional Coverage Extensions limits are amended as indicated below. Policy changes are indicated only for those extensions for which limits are indicated below. Newly Acquired Or Constructed Property: Building S Newly Acquired Or Constructed Property: Personal Property $700,000 Personal Effects And Property Of Others S Property Off Premises Outdoor Property: Items described in section(1) Items described in section(2) S Items described in section(3) S Personal Computers, EDP Equipment, Data or Media 5826,000 (If in transit, or on a vehicle) S Accounts Receivable S (If lost or damaged in transit) S Property In Or On A Vehicle Or On Exhibition S Stock S any one occurrence Grounds Maintenance Equipment S Emergency Portable Equipment S any one occurrence Underground Property S Miscellaneous Unscheduled Property, item(2) S Property In Transit S Building Ordinance Or Law S Power Interruption S Business Income And Extra Expense S Fine Art S each object S any one occurrence Fire Department Service Charges S Perishable Goods S Hazardous Materials S Expediting Expenses S CFC Refrigerants All other terms and conditions of this policy remain unchanged. This endorsement is a part of your policy and takes effect on the effective date of your policy, unless another effective date is shown below. NIF 116107/00 EARTHQUAKE ENDORSEMENT H633-000095-06 This endorsement modifies insurance provided under the following: CAUSE OF LOSS - SPECIAL FORM Exclusion B.Lb., Earth Movement is deleted and replaced with the following: LIMIT OF INSURANCE $1,000,000 Is the most we will pay for loss or damage in any one occurrence from earthquake and/or volcanic eruption, explosion or effusion. There is no reinstatement of this limit.It is the most we will pay in the aggregate for all occurrences to covered property during the policy period. DEDUCTIBLE $ 25,000 per occurrence, or %Of the values of insured property at the loss location(s) in any one occurrence. This deductible applies separately to the following: a. Each building or structure; b. The contents of each building or structure; or, c. Personal property in the open. With regard to any Business Income and/or Extra Expense insured by this policy, we will pay only for loss you sustain after the first 168 hours after direct physical loss or damage caused by or resulting from earthquake or volcanic eruption, explosion or effusion. DEFINITION Earthquake means any earth movement, including landslides, earth sinking, rising or shifting. All earthquake shocks or volcanic eruptions, explosions or effusions that occur within any 168 hour period will constitute a single earthquake or volcanic eruption, explosion or effusion. The expiration of this policy will not reduce the 168 hour period. NIF 1034 1298 FLOOD ENDORSEMENT H633-000095-06 This endorsement modifies insurance provided under the following: CAUSES OF LOSS - SPECIAL FORM Exclusion g., Water, is amended by deleting subsections (1) and(2), and affording "flood" coverage as follows: LIMITS OF INSURANCE $ 1,000,000 Is the most we will pay for any one "flood" "occurrence" for loss or damage irrespective of the number of insured locations involved in the same occurrence. $ 1,000,000 Is the most we will pay in aggregate during the policy year for loss or damage by "flood", irrespective of the number of insured locations or "flood" "occurrences" involved. DEDUCTIBLES $25,000 will be deducted for each claim for loss or damage in any one "flood" "occurrence". If more than one insured location is damaged in the same "flood" "occurrence" only one FLOOD DEDUCTIBLE shall apply; or No %will be deducted from each claim for loss or damage in any one "flood" "occurrence". If more than one insured location is damaged in the same "flood" "occurrence" only one FLOOD DEDUCTIBLE shall apply. SPECIAL FLOOD EXCLUSION Property designated as being within "Flood Zone A" or "Flood Zone V" by the Federal Emergency Management Agency(FEMA), or within a 100 Year Flood Plain as designated by the United States Army Corps of Engineers, is not insured for"flood". "Flood" as respects this endorsement, means the flow of any body of water into areas that are normally dry, including; flood, waves,tides,tidal waves, overflow of any body of water, or their spray, all whether driven by wind or not; water that accumulates on the surface of the ground as a result of rain, snow, sleet or hail; mudslide or mudflow. NIF 1038R COMMERCIAL PROPERTY CP 01 64 03 09 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. NEW YORK CHANGES - FUNGUS, WET ROT AND DRY ROT This endorsement modifies insurance provided under the following: COMMERCIAL PROPERTY COVERAGE PART A. In the Causes Of Loss — Basic Form, Causes Of 2. The costs associated with the enforcement of Loss — Broad Form, Causes Of Loss — Special any ordinance or law which requires any in- Form, and Mortgageholders Errors And Omissions sured or others to test for, monitor, clean up, Coverage Form, the exclusion titled "Fungus", Wet remove, contain, treat, detoxify or neutralize, or Rot, Dry Rot And Bacteria and the Additional Cov- in any way respond to, or assess the effects of erage — Limited Coverage For "Fungus", Wet Rot, "pollutants". Dry Rot And Bacteria are deleted. Under these D. Paragraph A. of Ordinance Or Law — Increased forms, the following exclusion is added: Period Of Restoration Endorsement CP 15 31 is We will not pay for loss or damage caused by or replaced by the following: resulting from "fungus", wet rot or dry rot. How- If a Covered Cause of Loss occurs to property at ever, this exclusion does not apply when "fungus", the premises described in the Declarations, cover- wet rot or dry rot results from a Covered Cause of age is extended to include the amount of actual Loss. and necessary loss you sustain during the in- B. In the Building And Personal Property Coverage creased period of "suspension" of "operations" Form and the Condominium Association Coverage caused by or resulting from the enforcement of Form, under the Additional Coverage — Increased any ordinance or law that: Cost Of Construction, Paragraph A.4.e.(5) is re- 1. Regulates the construction or repair of any placed by the following: property; Under this Additional Coverage, we will not pay 2. Requires the tearing down of parts of any prop- for: erty not damaged by a Covered Cause of Loss; 1. The enforcement of any ordinance or law and which requires demolition, repair, replacement, 3. Is in force at the time of loss. reconstruction, remodeling or remediation of property due to contamination by "pollutants", However, coverage is not extended under this en- or dorsement to include loss caused by or resulting 2. Any costs associated with the enforcement of from the enforcement of any ordinance or law an ordinance or law which requires any insured which requires: or others to test for, monitor, clean up, remove, 1. The demolition, repair, replacement, recon- contain, treat, detoxify or neutralize, or in any struction, remodeling or remediation of prop- way respond to, or assess the effects of "pol- erty due to contamination by"pollutants", or lutants". 2. Any insured or others to test for, monitor, clean C. Paragraph C. of Ordinance Or Law Coverage up, remove, contain, treat, detoxify or neutral- Endorsement CP 04 05 is replaced by the follow- ize, or in any way respond to, or assess the ef- ing: fects of"pollutants". We will not pay under Coverage A, B or C of this endorsement for: 1. Enforcement of any ordinance or law which requires the demolition, repair, replacement, reconstruction, remodeling or remediation of property due to contamination by "pollutants-, or CP 01 64 03 09 © Insurance Services Office, Inc., 2009 Page 1 of 2 13 E. Paragraph E.3. of Functional Building Valuation Endorsement CP 04 38 is replaced by the follow- ing: We will not pay under this endorsement for: 1. Enforcement of any ordinance or law which requires the demolition, repair, replacement, reconstruction, remodeling or remediation of property due to contamination by "pollutants-, or 2. The costs associated with the enforcement of any ordinance or law which requires any in- sured or others to test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of "pollutants". Page 2 of 2 © Insurance Services Office, Inc., 2009 CP 01 64 03 09 ❑ IL 09 52 03 08 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. CAP ON LOSSES FROM CERTIFIED ACTS OF TERRORISM This endorsement modifies insurance provided under the following: BOILER AND MACHINERY COVERAGE PART COMMERCIAL INLAND MARINE COVERAGE PART COMMERCIAL PROPERTY COVERAGE PART EQUIPMENT BREAKDOWN COVERAGE PART FARM COVERAGE PART STANDARD PROPERTY POLICY A. Cap On Certified Terrorism Losses If aggregate insured losses attributable to terrorist "Certified act of terrorism" means an act that is acts certified under the Terrorism Risk Insurance certified by the Secretary of the Treasury, in con- Act exceed $100 billion in a Program Year (Janu- currence with the Secretary of State and the Attor- ary 1 through December 31) and we have met our ney General of the United States, to be an act of insurer deductible under the Terrorism Risk Insur- terrorism pursuant to the federal Terrorism Risk ance Act, we shall not be liable for the payment of Insurance Act. The criteria contained in the Terror- any portion of the amount of such losses that ex- ism Risk Insurance Act for a "certified act of terror- ceeds $100 billion, and in such case insured loss- ism" include the following: es up to that amount are subject to pro rata alloca- tion in accordance with procedures established by 1. The act resulted in insured losses in excess of the Secretary of the Treasury. $5 million in the aggregate, attributable to all types of insurance subject to the Terrorism B Application Of Exclusions Risk Insurance Act; and The terms and limitations of any terrorism exclu- 2. The act is a violent act or an act that is dan- sion, or the inapplicability or omission of a terror- gerous to human life, property or infrastructure ism exclusion, do not serve to create coverage for and is committed by an individual or individuals any loss which would otherwise be excluded under as part of an effort to coerce the civilian popu- this Coverage Part or Policy, such as losses ex- lation of the United States or to influence the cluded by the Nuclear Hazard Exclusion or the policy or affect the conduct of the United States War And Military Action Exclusion. Government by coercion. IL 09 52 03 08 © Insurance Services Office, Inc., 2008 Page 1 of 1 13 POLICY NUMBER: INTERLINE IL 04 15 04 98 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. PROTECTIVE SAFEGUARDS This endorsement modifies insurance provided under the following: COMMERCIAL PROPERTY COVERAGE PART FARM COVERAGE PART SCHEDULE* Prem. Bldg. Protective Safeguards No. No. Symbols Applicable Describe any ALL SPRINKLERED LOCATIONS P-1 * Information required to complete this Schedule, if not shown on this endorsement, will be shown in the Decla- rations. A. The following is added to the: (3) Tanks, their component parts and Commercial Property Conditions supports;and General Conditions in the (4) Pumps and private fire protection Farm Property—Other Farm mains. Provisions Form —Additional Coverages, b. When supplied from an automatic Conditions, Definitions fire protective system: General Conditions in the Mobile Agricultural Machinery and Equipment Coverage Form (1) Non-automatic fire protective General Conditions in the Livestock Coverage systems; and Form (2) Hydrants, standpipes and outlets. PROTECTIVE SAFEGUARDS "P-2" Automatic Fire Alarm, protecting 1. As a condition of this insurance, you are the entire building, that is: required to maintain the protective devices a. Connected to a central station; or or services listed in the Schedule above. b. Reporting to a public or private fire 2. The protective safeguards to which this alarm station. endorsement applies are identified by the "P-3" Security Service, with a recording following symbols: system or watch clock, making hour- "PA" Automatic Sprinkler System, ly rounds covering the entire build- including related supervisory ser- ing, when the premises are not in ac- vices. tual operation. Automatic Sprinkler System means: "P-4" Service Contract with a privately a. Any automatic fire protective or ex- owned fire department providing fire tinguishing system, including con- protection service to the described nected: premises. (1) Sprinklers and discharge noz- "P-9" The protective system described in zles, the Schedule. (2) Ducts, pipes, valves and fittings; IL 04 15 04 98 Copyright, Insurance Services Office, Inc., 1997 Page 1 of 2 ❑ B. The following is added to the EXCLUSIONS sec- We will not pay for loss or damage caused by tion of: or resulting from fire if, prior to the fire, you: CAUSES OF LOSS — BASIC FORM 1. Knew of any suspension or impairment in CAUSES OF LOSS — BROAD FORM any protective safeguard listed in the CAUSES OF LOSS —SPECIAL FORM Schedule above and failed to notify us of MORTGAGE HOLDERS ERRORS AND that fact; or OMISSIONS COVERAGE FORM 2. Failed to maintain any protective safeguard STANDARD PROPERTY POLICY listed in the Schedule above, and over CAUSES OF LOSS FORM — FARM which you had control, in complete working PROPERTY order. MOBILE AGRICULTURAL MACHINERY AND EQUIPMENT COVERAGE FORM If part of an Automatic Sprinkler System is shut LIVESTOCK COVERAGE FORM off due to breakage, leakage, freezing condi- tions or opening of sprinkler heads, notification to us will not be necessary if you can restore full protection within 48 hours. Page 2 of 2 Copyright, Insurance Services Office, Inc., 1997 IL 04 16 04 98 ❑ PUBLIC ENTITY AMENDATORY ENDORSEMENT BUILDING AND PERSONAL PROPERTY COVERAGE FORM INCLUDING EQUIPMENT BREAKDOWN This endorsement modifies insurance provided under the following: BUILDING AND PERSONAL PROPERTY COVERAGE FORM Page 1 of CP 00 10 06 07, Covered Property, shall include under Your Business Personal Property, (3) "Stock" and animals on exhibit at zoos, or used by your law enforcement department as part of a canine or equestrian patrol. Coverage for animals is limited to $10,000. any one occurrence. (8) Fine art, consisting of paintings, prints, sculpture, tapestries and ceramics. Unless otherwise scheduled in the FINE ARTS COVERAGE FORM, such objects shall be insured for$1,000 each object, to a maximum of$50,000. any one occurrence. Building shall include under(4)Personal property owned by you that is used to maintain or service the building or structure or its premises: (e) emergency portable equipment consisting of generators, pumps, air-pressure devices and other similar equipment, if not more specifically insured under other sections of this policy, for$100,000 any one occurrence. Page 5 of CP 00 10, Additional Coverages, is amended as follows: (t)Paragraphs (1)through(4) of Electronic Data are deleted and replaced by the following. The most we will pay under this Extension is $250,000. but if the equipment, data or media is lost or damaged while in transit or on a vehicle the most we will pay is $25,000. You may extend the insurance that applies to your Business Personal Property to apply to your electronic data processing equipment, data or media. This extension includes the property of others that you hold in any capacity, or for which you are responsible. (1) Coverage under this Extension includes: (a) Personal computers, electronic data processing and word processing equipment, including their component parts; (b) Data stored on the media, including facts, concepts, computer programs and instructional vehicles used in your data processing system as well as accounts, bills, evidences of debt,valuable papers and records, abstracts, deeds, manuscripts or other documents in data processing media form; and (c) Media on which the data is stored. NIF 1113 0709 Page 1 of 11 (2) We will not cover the following type of equipment, data or media: (a) Any data or media for which duplicates or replacements do not exist; or (b)Property rented or leased to others while away from the described premises. (3)Personal Computers, EDP Equipment, Data or Media loss payment will be determined as follows: (a)Equipment. We will pay the least of the following amounts: (i) The cost of reasonably restoring that property to its condition immediately before the loss or damage; or (ii) The cost of replacing that property with identical property. However, when repair or replacement with identical property is not possible, we will pay the cost to replace that property with similar property capable of performing the same functions. As respects the insurance afforded by this Coverage Extension, form NIF 1114 Causes Of Loss Special Form, is amended as follows: Exclusion 3.c (2) is hereby deleted. If not repaired or replaced, the property will be valued at its actual cash value. (b)Data. We will pay up to the actual cost incurred of reproducing the data. (c)Media. We will pay to repair or replace the media with material of the same kind and quality. We will provide coverage for a virus, harmful code or similar instruction introduced into or enacted on a computer system(including electronic data) or a network to which it is connected, designed to damage or destroy any part of the system or disrupt its normal operations. But there is no cover for loss or damage caused by or resulting from manipulation of a computer system(including electronic data)by any employee, including a temporary or leased employee, or by an entity retained by you or for you to inspect, design, install, modify, maintain, repair or replace that system. The most we will pay for coverage provided by this paragraph is $25,000. Add (g)Accounts Receivable. To CP 00 10 Additional Coverages. The most we will pay under this Extension is $250,000. If accounts receivable records are lost or damaged in transit, the most we will pay is $25,000. (1) You may extend the insurance that applies to Your Business Personal Property to apply to your records of accounts receivable. (a) At a described premises or in or on a vehicle in transit between described premises; or (b)If the records must be removed from a described premises to protect them from the threat of a Covered Cause Of Loss. (2) The amount of your Accounts Receivable loss includes: (a)Money owed to you from customers or taxpayers if you are unable to collect the money as a direct result of a covered loss or damage to your accounts receivable records; NIF 1113 0709 Page 2 of 11 (b)Interest charges on money you must borrow to offset your reduced cash flow; (c) Additional collection costs, over and above your usual collection costs, made necessary because of loss or damage; and (d)Reasonable expenses you must incur to re-establish your accounts receivable records. (3) Accounts receivable loss payment will be determined as follows: (a) When there is proof that a covered loss has occurred but you cannot accurately establish the amount of accounts receivable outstanding at the time of the loss, the amount of the loss will be computed as follows: (i)Determine the total of the average monthly amounts of accounts receivable for the 12 months immediately preceding the month in which the loss or damage occurs; and (ii) Adjust that total for any normal fluctuations in the amount of accounts receivable for the month in which the loss or damage occurred or for any demonstrated variance from the average for that month. (b) We will deduct from the established total amount of accounts receivable: (i) The amount of any accounts evidenced by records not lost or damaged; (ii) Any other amounts you are able to establish or collect; and (iii) An amount to allow for probable bad debts which you normally would have been unable to collect. (c)If you recover the amount of any accounts receivable that were included in the amount of the paid loss, you will return the recovered amount to us, up to the total amount of the paid loss. You will keep any recovery in excess of the amount of the paid loss. (4) We will not pay for a "loss" caused by or resulting from any of the following: (a) Alteration,falsification, concealment or destruction of records of accounts receivable done to conceal the wrongful giving, taking or withholding of money, securities or other property. This exclusion applies only to the extent of the wrongful giving, taking or withholding. (b)Voluntary parting with any property by you or anyone entrusted with the property if induced to do so by any fraudulent scheme, trick, devise or false pretense. (5) We will not pay for a "loss" caused by or resulting from any of the following. But if"loss"by a Covered Cause Of Loss results, we will pay for that resulting "loss". (a) Weather conditions. But this exclusion only applies if weather conditions contribute in any way with a cause or event excluded by Governmental Action, Nuclear Hazard or War and Military Action. (b) Acts or decisions, including the failure to act or decide, of any person, group or organization or governmental body. (c)Faulty, inadequate or defective: (i)planning, zoning, development, surveying or siting. (ii) design, specifications, workmanship, repair, construction, renovation, remodeling, grading or compaction. (iii)materials used in repair, construction, renovation or remodeling, or (iv)maintenance of part or all of any property wherever located. Page 3, Additional Coverages, is amended to include: (h) Fire Protective Devices. You may extend the insurance provided by this Coverage Form to apply to your fire protective devices that are permanently installed in buildings at the NIF 1113 0709 Page 3of11 described premises. This Extension applies when such devices have been discharged by accident but not for periodic recharge. The most we will pay under this extension is $10,000. for each separate 12 month period of this policy to recharge or refill fire protective covered by this Extension. (i) Inventory or Appraisal. You may extend the insurance provided under this Coverage Form to apply to the following expenses you incur, as required by this Coverage Part, to prepare a claim: (1) The cost of taking inventories; (2) The cost of making appraisals; and (3) The cost of preparing a statement of loss and other supporting exhibits. The most we will pay under this extension for any claim is $10,000. However, this does not include the cost of services by public adjusters. (j)Underground Property. You may extend the insurance provided by this Coverage Form to apply to water, regulators, basins, sewer and drain pipes, flues, storm basins and drains and ejectors. The most we will pay under this extension is $250,000. any one occurrence. (k) Miscellaneous Unscheduled Property. Coverage that applies to your buildings and personal property is extended to include miscellaneous locations which you own, lease, rent or occupy which are not shown in the Schedule Of Locations attached to this policy. The most we will pay for loss or damage in any one occurrence under this coverage will be the lesser of the following: (1) The actual cost to repair or replace the lost or damaged property; or (2) $250,000. Page 4 of CP 00 10, Additional Coverages, is amended as follows: c. Fire Department Service Charge limit is increased from$1,000. to $10,000. d. Pollutant Cleanup and Removal is amended as follows. The second paragraph of the Pollutant Clean Up and Removal Extension, applying to "costs to test for, monitor or assess the existence, concentration or affects of pollutants", is hereby deleted. Page 3, Additional Coverages, is amended to include (1): Equipment Breakdown (1) We will pay for direct physical damage to Covered Property that is the direct result of an "Accident."As used in this Additional Coverage, "Accident"means a fortuitous event that causes direct physical damage to "covered equipment."The event must be one of the following: (a) mechanical breakdown, including rupture or bursting caused by centrifugal force; (b) artificially generated electric current, including electric arcing, that disturbs electrical devices, appliances or wires; (c) explosion of steam boilers, steam pipes, steam engines or steam turbines owned or leased by you, or operated under your control; NIF 1113 0709 Page 4 of 11 (d) loss or damage to steam boilers, steam pipes, steam engines or steam turbines caused by or resulting from any condition or event inside such equipment; or (e) loss or damage to hot water boilers or other water heating equipment caused by or resulting from any condition or event inside such boilers or equipment. If an initial "Accident"causes other"Accidents", all will be considered one "Accident". All "Accidents"that are the result of the same event will be considered one "Accident". "Covered equipment"means, unless otherwise shown in the Equipment breakdown Coverage Schedule, Covered Property: (a) that generates, transmits or utilizes energy, including electronic communications and data processing equipment; or (b) which, during normal usage, operates under vacuum or pressure, other than the weight of its contents: (2) Unless otherwise shown in the Equipment Breakdown Coverage Schedule, the following coverages also apply to loss caused by or resulting from an"Accident"to "covered equipment". These coverages do not provide additional amount of insurance. (a) Expediting Expenses With respect to your damaged Covered Property, we will pay, the reasonable extra cost to: (i) make temporary repairs; and (ii) expedite permanent repairs or replacement. The most we will pay for loss or expense under this coverage is $25,000, unless Otherwise shown in the Equipment Breakdown Coverage Schedule. (b) Hazardous Substances We will pay for the additional cost to repair or replace Covered Property because of contamination by a"hazardous substance". This includes the additional expenses to clean up or dispose of such property. This does not include contamination of"perishable goods"by refrigerant, including but not limited to ammonia, which is addressed in(2)(c)(ii)below. "Hazardous substance"means any substance other than ammonia that has been declared to be hazardous to health by a governmental agency. As used in this coverage, additional costs mean those beyond what would have been payable under this Equipment Breakdown Coverage had no hazardous substance been involved. The most we will pay for loss or damage under this coverage, including actual loss of Business Income or Rental Value you sustain, necessary Extra Expense you incur and loss under Perishable Goods coverage, is $25,000. (c) Perishable Goods (i) We will pay for your loss of"perishable goods" due to spoilage. (ii) We will also pay for physical damage of"perishable goods" due to contamination from the release of refrigerant, including but not limited to ammonia. (iii) We will also pay any necessary expenses you incur to reduce the amount of loss under this coverage. We will pay for such expenses to the extent that they do not exceed the amount of loss that otherwise would have been payable under this coverage. (iv) If you are unable to replace the "perishable goods"before its anticipated sale, the amount of our payment will be determined on the basis of the NIF 1113 0709 Page 5of11 sales price of the "perishable goods" at the time of the "Accident", less discounts and expenses you otherwise would have had. Otherwise our payment will be determined in accordance with the Loss Payment condition. (v) Additional Definition. For the purpose of this coverage, "perishable goods"means personal property maintained under controlled conditions for its preservation, and susceptible to loss or damage if the controlled conditions change. The most we will pay for loss or damage under this coverage is $100,000, unless otherwise shown in the Equipment Breakdown Coverage Schedule. (d) Personal Computers and EDP Equipment We will pay for loss or damage caused by or resulting from an"Accident"to "computer equipment". "Computer equipment"means Covered Property that is electronic computer or other data processing equipment, including"media"and peripherals used in conjunction with such equipment. "Media"means material on which"data"is recorded, such as magnetic tapes, hard disks, optical disks or floppy disks. The most we will pay for loss, or damage under this coverage, including actual loss of Business Income or Rental Value you sustain and necessary Extra Expense you incur is $250,000, unless otherwise shown in the Equipment Breakdown Coverage Schedule. Computers used primarily to control or operate "coverage equipment"are not subject to this limit. (e) Data Restoration We will pay for your reasonable and necessary cost to research, replace and restore lost"data." "Data"means information or instructions stored in digital code capable of being processed by machinery. The most we will pay for loss or expense under this coverage, including actual loss of Business Income or Rental Value you sustain and necessary Extra Expense you incur, if shown as covered, is $25,000 unless otherwise shown in the Equipment Breakdown Coverage schedule. (f) Service Interruption (i) Any insurance provided for Business Income, Rental Value and Extra Expense or Perishable Goods is extended to apply to your loss, damage or expense caused by the interruption of utility services. The interruption must result from an "Accident"to equipment, including overhead transmission lines that are owned by a utility, a landlord's utility or other supplier who provides you with any of the following services: electrical power, waste disposal, air conditioning, refrigeration, heating, natural gas, compressed air, water, steam, internet access, telecommunications services, wide area networks or data transmission. The equipment must meet the definition of"covered equipment"except that it is not Covered Property. (ii) We will not pay for any loss of Business Income or Rental Income you sustain that results from the interruption of utility services during the first 24 hours NIF 1113 0709 Page 6 of 11 following the "Accident."However, if a deductible is shown in the Equipment Breakdown Coverage Schedule, or if the "period of restoration"begins more than 24 hours after the time of the direct physical damage for Business Income or Rental Income, then that deductible or time period will apply instead of the 24 hours provided for in this paragraph (iii) The most we will pay in any one "Accident"for loss, damage or expense under this coverage is the applicable limit for Business Income, Rental Value and Extra Expense or Perishable Goods, except that if a limit is shown in the Equipment Breakdown Coverage Schedule for Service Interruption, that limit will apply to Business Income and Extra Expense. (g) Business Income, Rental Value and Extra Expense Any insurance provided under this coverage part for Business Income, Rental Value or Extra Expense is extended to the coverage provided by this endorsement. However, if a deductible is shown in the Equipment Breakdown Coverage Schedule, then as respects Equipment Breakdown coverage, the "period of restoration"will begin immediately after the "accident,"and the deductible shown in the Schedule will apply. The most we will pay for loss or expense under this coverage is the applicable limit for Business Income, Rental Value and Extra Expense, unless otherwise shown in the Equipment Breakdown Coverage Schedule. The most we will pay for loss, damage or expense under Equipment Breakdown arising from any one "Accident"is the applicable Limit of Insurance shown in the Declaration, unless otherwise shown in the Equipment Coverage Schedule. Coverage provided under Equipment Breakdown does not provide an additional amount of insurance. Page 6, Coverage Extensions, is amended as follows: a. The Newly Acquired or Constructed Property limit for buildings is increased from $250,000. to $500,000., and the limit for business personal property is increased from $100,000. to $500,000. Subsection(3),(b) shall substitute "180" days for "30" days. b., Personal Effects and Property of Others shall read as follows: You may extend the insurance that applies to Your Business Personal Property to apply to: (1) Personal effects owned by you, your officers, your partners, your employees and volunteers. This Extension does not apply to loss or damage by theft. The most we will pay for loss or damage to personal effects under this Extension is $25,000. (2) Personal property of others in your care, custody or control. The most we will pay for loss or damage to personal property of others under this Extension is $25,000. Our payment for loss or damage to personal property of others described in(1) and (2) above will be only for the account of the owner of the property. Pages 7 and 8 of Coverage Extensions, d. Property Off-Premises is increased from$10,000 to $100,000. e., Outdoor Property, is substituted with the following wording. You may extend the insurance provided by this Coverage Form to apply to: NIF 1113 0709 Page 7 of 11 (1) Trees, shrubs, plants, lawns, bus shelters, playground equipment, benches, parking meters, fire hydrants, street lights, street light poles, outdoor fences, backstops, goal posts and goal nets, guardrails, fencing, bleachers, flag poles, surveillance cameras, satellite dishes, traffic lights, traffic and road signs and other signs. (2)Radio, microwave or television antennas, masts or towers. (3) Other outdoor property. Such insurance will include debris removal expense. Coverage will apply only if loss is caused by or results from any of the following causes of loss if they are Covered Causes of Loss: (1)Fire (2)Lightning (3)Explosion (4)Riot, Vandalism or Civil Commotion (5) Aircraft (6)Vehicles (7) Theft The most we will pay for loss or damage under this Extension is $25,000. for items described in (1) above, $100,000. for items described in(2) above and $5,000. for other outdoor property. Page 2, Property Not Covered is amended by substituting the following subsections: a. Accounts, bills, currency, deeds, evidences of debt, money, notes or securities. in. Underground pipes, flues or drains, except as provided in the Additional Coverages. q.2.. Fences, radio or television antennas, and their lead-in wiring, masts, towers, satellite dishes, trees, shrubs or plants, all except as provided in the Coverage Extensions. CP 00 10, E. LOSS CONDITIONS, is amended as follows: 2. Appraisal, shall include the words "net income and operating expense" after the word "property" in the second line. 4. Loss Payment, shall include the following: i. The amount of Business Income loss will be determined based on: (1) The Net Income of the business before the direct physical loss or damage occurred; (2) The likely Net Income of the business if no loss or damage occurred; (3) The operating expenses, including payroll expenses, necessary to resume "operations"with the same quality of service that existed just before the direct physical loss or damage ; and (4) Other relevant sources of information, including: (a) Your financial records and accounting procedures; (b) Bills, invoices and other vouchers; and (c) Deeds, liens or contracts. J. The amount of Extra Expense will be determined based on: (1) All expenses that exceed the normal operating expenses that would have been incurred by 'operations" during the "period of restoration" if no direct physical loss or damage had occurred. We will deduct from the total of such expenses: NIF 1113 0709 Page 8of11 (a) The salvage value that remains of any property bought for temporary use during the "period of restoration", once 'operations" are resumed; and (b) Any Extra Expense that is paid for by other insurance , except for insurance that is written subject to the same plan, terms, conditions and provisions as this insurance; and (c) All necessary expenses that reduce the Business Income loss that otherwise would have been incurred. k. Resumption of Operations. We will reduce the amount of your: (1)Business Income loss, other than Extra Expense, to the extent you can resume your "operations", in whole or in part, by using damaged or undamaged property (including merchandise or stock) at the described premises or elsewhere. (2)Extra Expense loss to the extent you can return 'operations"to normal and discontinue such Extra Expense. 1. If you do not resume 'operations", or do not resume 'operations" as quickly as possible, we will pay based on the length of time it would have taken to resume 'operations" as quickly as possible. The following definitions apply: "Operations"means: a. Your business activities occurring at the described premises; and b. The tenantability of the described premises, if coverage for Business Income including "Rental Value"or"Rental Value"applies. "Period of restoration"means the period of time that: a. Begins: (1) 72 hours after the time of direct physical loss or damage for Business Income Coverage; or (2) Immediately after the time of direct physical loss or damage for Extra Expense Coverage; Caused by or resulting from any Covered Cause of Loss at the described premises; and b. Ends on the earlier of: (1) The date when the property at the described premises should be repaired, rebuilt Or replaced with reasonable speed and similar quality; or (1) The date when the business is resumed at a new permanent location. "Period of Restoration"does not include any increased period required due to the enforcement of any ordinance or law that: (1) Regulates the construction, use or repair, or requires the tearing down, of any property; or (2) Requires any insured or others to test for, monitor, clean up, remove, contain, treat, NIF 1113 0709 Page 9 of 11 detoxify or neutralize, or in any way respond to, or assess the effects of "pollutants". The expiration date of this policy will not cut short the "period of restoration". "Rental Value"means Business Income that consists of: a. Net Income (Net Profit or Loss before income taxes)that would have been earned or incurred as rental income from tenant occupancy of the premises described in the Declarations as furnished and equipped by you, including fair rental value of any portion of the described premises which is occupied by you; and b. Continuing normal operating expenses incurred in connection with that premises, including: (1) Payroll; and (2) The amount of charges which are the legal obligation of the tenant(s)but would otherwise be your obligations. "Suspension"means: a. The slowdown or cessation of your business activities; or b. That a part or all of the described premises is rendered untenantable, if coverage for Business Income including"Rental Value"or"Rental Value"applies. CP 00 10,F.on page 12, Additional Conditions, is amended to include: (3) Suspension When any"covered equipment"is found to be in, or exposed to a dangerous condition, any of our representatives may immediately suspend the insurance against loss from an"Accident"to that"covered equipment". We can do this by mailing or delivering a written notice of suspension to your address as shown in the Declarations, or at the address where the equipment is located. Once suspended in this way, your insurance can be reinstated only by an endorsement for that"covered equipment."If we suspend your insurance, you will get a pro rata refund of premium for that"covered equipment"for the period of suspension. But the suspension will be effective even if we have not yet made or offered a refund. (4) Jurisdictional Inspections If any property that is "covered equipment"under this endorsement requires inspection to comply with state or municipal boiler and pressure vessel regulations, we agree to perform such inspection on your behalf. We do not warrant that conditions are safe or healthful. (5) Environmental, Safety and Efficiency Improvements If"covered equipment"requires replacement due to an"Accident,"we will pay Your additional cost to replace with equipment that is better for the environment, safer or more efficient than the equipment being replaced. However, we will not pay more than 125%of what the cost would have been to replace with like kind and quality. This condition does not increase any of the NIF 1113 0709 Page 10 of 11 applicable limits. This condition does not apply to any property to which Actual Cash Value applies. (6) Coinsurance If a coinsurance percentage is shown in the Equipment Breakdown Schedule for specified coverages, the following condition applies. We will not pay for the full amount of your loss if the applicable limit is less than the product of the specified coinsurance percentage times the value of the property subject to the coverage at the time of loss. Instead, we will determine what percentage this calculated product is compared to the applicable limit and apply that percentage to the gross amount of loss. We will then subtract the applicable deductible. The resulting amount, or the applicable limit, is the most we will pay. We will not pay for the remainder of the loss. Coinsurance applies separately to each insured location. Add to H. DEFINITIONS, "Occurrence". Occurrence means the total loss, damage, disaster or casualty caused by or resulting from any one or more Covered Cause(s) of Loss to Covered Property. Occurrence shall mean loss caused by a single event within a 72 hour period for the following: 1. Tornado, cyclone or hurricane 2. Windstorm, hail and ice 3. Riot, civil commotion 4. Any other Covered Cause of Loss. You may elect when the 72 hour period begins. NIF 1113 0709 Page 11 of 11 PUBLIC ENTITY AMENDATORY ENDORSEMENT CAUSES OF LOSS - SPECIAL FORM INCLUDING EQUIPMENT BREAKDOWN This endorsement modifies insurance provided under the following: CAUSES OF LOSS - SPECIAL FORM As respects the insurance afforded by the CP 00 10 06 07, page 5, Additional Coverage f, Electronic Data,, the following amendments apply: Exclusion 2.a (1) is amended by adding the following after"network", "unless such short circuit or disturbance takes place within the Covered Property or on or within 200 feet from the building containing the covered equipment, data or media"; or As respects the insurance afforded by the NIF 1113, Additional Coverage, 1., Equipment Breakdown, the Exclusions in CP 10 13 are amended as follows: (a) All exclusions and limitations apply except: (i) Exclusions B.2.a., B.2.d.(6) and B.2.e.; and (ii) Limitations C.1.a. and C.Lb. (b) The last paragraph of Exclusion B.2.d. is deleted and replaced with the following: But if loss or damage by the "specified causes of loss,""Accident", or building glass breakage results, we will pay for that resulting loss or damage. (c) The following is added: (i) None of the following is "covered equipment": (A) structure,foundation, cabinet, compartment or air supported structure or building; (B) insulating or refractory material; (C) sewer piping, underground vessels or piping, piping forming a part of a sprinkler system or water piping other than boiler feedwater piping, boiler condensate return piping or water piping forming a part of a refrigerating or air conditioning system; (D) vehicle, dragline, excavation or construction equipment; or (E) equipment manufactured by you for sale. (ii) We will not pay under the Equipment Breakdown Additional Coverage for loss or damage caused by or resulting from: (A) your failure to use all reasonable means to protect the "perishable goods"from damage following an"Accident"; (B) any defect,virus, loss of data or other situation within"media". But if loss or damage from an"Accident"results, we will pay for that resulting loss or damage; or (C) any of the following tests: a hydrostatic, pneumatic or gas pressure test of any boiler or pressure vessel; or NIF 1114 0709 1 of 4 an insulation breakdown test of any type of electrical equipment. Exclusion 2. d. (6) is hereby deleted. Page 9, Additional Coverage Extensions, is amended as follows: 1. Property In Transit subsection c. is substituted with the following. "The most we will pay for loss or damage under this Extension is $100,000." Add 4. Building Ordinance Or Law. (1)If there is an ordinance or law in effect at the time of loss that regulates zoning, land use or construction of a building, and enforcement of that ordinance or law affects the repair or rebuilding of that building following damage by a Covered Cause Of Loss, you may extend the insurance on the Building to cover: (a) Costs to demolish and clear the site of the undamaged portions of the building; (b) The value of the undamaged portions of the building; and (c) The increased cost to repair or rebuild the building with another building of the same size. (2) We will not pay more under this Extension than if the repaired or replaced building was: (a)Rebuilt at the same location as soon as reasonably possible, (b) To the extent the law permits, of the same size as the one it replaces; and (c)Designed for the same type of occupancy as the one it replaces, unless otherwise required by zoning or land use ordinance or law. The increased rebuilding costs must be kept to the minimum needed to satisfy legal requirements. (3)If you do not repair or replace the damaged building, we will pay under this Extension only to demolish or clear the site of the undamaged portions of the building. (4) This Extension does not apply to the costs associated with the enforcement of any ordinance or law that requires any insured or others to test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of"pollutants". The most we will pay under this Extension is $250,000. Any coinsurance penalty applicable to the building will also apply to the amount otherwise payable under this Extension. Add (5)Power Interruption You may extend the insurance for Covered Property to apply to loss or damage caused by interruption of electric power supply services to the described premises. The interruption must result from the direct physical loss or damage by a Covered Cause of Loss to the following property not on the described premises: (1) Switching stations or substations; (2) Transformers; and (3) Transmission lines, other than overhead transmission lines. NIF 1114 0709 2 of 4 The most we will pay under this Extension is $25,000. The ADDITIONAL CONDITION, Coinsurance, does not apply to this Extension. Add (6) Business Income, Rental Value and Extra Expense (1) You may extend the insurance provided for direct loss of or damage to Covered Property to apply to: (a) The actual loss of Business Income or rental value you sustain due to the necessary Suspension of your operations at the described premises as a result of such covered direct loss or damage; and (b)Necessary Extra Expense you incur that you would not have incurred had there been no such covered direct loss or damage. (2) This Extension only applies to the amount of loss incurred from the date of direct physical loss or damage to Covered Property at or within 100 feet of the described premises by a Covered Cause of Loss. It ends on the date when the property at the described premises should be repaired, rebuilt or replaced with reasonable speed and similar quality, even if this is after the expiration date of the policy. This does not include any increased time needed due to enforcement of any ordinance or law regulating: (a)Building or land usage, demolition or construction; or (b)Environmental damage or restoration. (3)Business Income means: (a)Net Income (Not profit or loss before income taxes)that would have been earned or incurred; and (b) Continuing normal operating expenses necessarily incurred, including payroll. (4)Extra Expense means expense incurred: (a) To avoid or minimize the suspension of business and to continue your operations at any location; (b) To minimize the suspension of business if you cannot continue your operations; or (c) To repair or replace any property or to research, replace or restore the information on valuable papers and records, but only if those expenses reduce the amounts otherwise payable by this Extension. The most we will pay under this Extension is $250,000. If the lost or damaged Covered Property is not repaired or replaced, we will not cover any loss under this Extension. The ADDITIONAL CONDITION, Coinsurance does not apply to this Extension. B. EXCLUSIONS, is amended as follows: Exclusions a. Ordinance or Law and e. Utility Services shall be preceded by the words "Except as provided under Additional Coverage Extensions,". Exclusion g. Water is substituted with the following. (1)Flood, waves, tides, tidal waves, overflow of any body of water, or their spray, all whether driven by wind or not; However, if electrical "covered equipment"requires drying out because of the above, we will pay for the direct expenses of such drying out subject to the applicable Limit NIF 1114 0709 3 of 4 of Insurance and deductible for Building or Business Personal Property, whichever applies. (2)Mudslide or mudflow.But if loss or damage by fire, explosion or sprinkler leakage results, we will pay for that resulting loss or damage. But if loss or damage by fire, explosion or sprinkler leakage results, we will pay for the resulting loss or damage. Exclusion 2.h., pertaining to dishonest or criminal acts, shall include "volunteers" and "appointees" after "employees" in the second line. Substitute "Coverage Extension"for "Coverage Form"wherever it appears in 4. Special Exclusions. Amend Exclusion g, Water by adding the following after(2)Mudslide or mudflow: We will not pay more than$50,000. for direct physical loss or damage caused by: (3) Water that backs up from a sewer or drain; or (4) Water under the ground surface pressing on, or flowing or seeping through, (1)foundations, well, floors or paved surfaces, (2)basements, whether paved or not, or (3) doors, windows or other openings. (5) Water that accumulates on the surface of the ground at the described premises as a result of rain, snow, sleet or hail, except as excluded by flood, waves, tides, tidal waves, overflow of any body of water, or their spray, all driven by wind or not.. NIF 1114 0709 4 of 4 COMMERCIAL PROPERTY CP 00 10 06 07 BUILDING AND PERSONAL PROPERTY COVERAGE FORM Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and what is and is not covered. Throughout this policy the words "you" and "your" refer to the Named Insured shown in the Declarations. The words "we", "us" and 'bur" refer to the Company providing this insurance. Other words and phrases that appear in quotation marks have special meaning. Refer to Section H., Definitions. A. Coverage (b) Materials, equipment, supplies and We will pay for direct physical loss of or damage to temporary structures, on or within Covered Property at the premises described in the 100 feet of the described premises, Declarations caused by or resulting from any Cov- used for making additions, altera- ered Cause of Loss. tions or repairs to the building or structure. 1. Covered Property b. Your Business Personal Property located Covered Property, as used in this Coverage in or on the building described in the Decla- Part, means the type of property described in rations or in the open (or in a vehicle) within this section, A.1., and limited in A.2., Property 100 feet of the described premises, consist- Not Covered, if a Limit of Insurance is shown in ing of the following unless otherwise speci- the Declarations for that type of property. fied in the Declarations or on the Your Busi- a. Building, meaning the building or structure ness Personal Property — Separation Of described in the Declarations, including: Coverage form: (1) Completed additions; (1) Furniture and fixtures; (2) Fixtures, including outdoor fixtures; (2) Machinery and equipment; (3) Permanently installed: (3) "Stock"; (a) Machinery and (4) All other personal property owned by (b) Equipment; you and used in your business; (4) Personal property owned by you that is (5) Labor, materials or services furnished or used to maintain or service the building arranged by you on personal property of or structure or its premises, including: others; (a) Fire-extinguishing equipment; (6) Your use interest as tenant in improve- ments and betterments. Improvements (b) Outdoor furniture; and betterments are fixtures, alterations, (c) Floor coverings; and installations or additions: (d) Appliances used for refrigerating, (a) Made a part of the building or struc- ventilating, cooking, dishwashing or ture you occupy but do not own; and laundering; (b) You acquired or made at your ex- (5) If not covered by other insurance: pense but cannot legally remove; (a) Additions under construction, altera- (7) Leased personal property for which you tions and repairs to the building or have a contractual responsibility to in- structure; sure, unless otherwise provided for un- der Personal Property Of Others. CP 00 10 06 07 © ISO Properties, Inc., 2007 Page 1 of 16 ❑ c. Personal Property Of Others that is: n. Electronic data, except as provided under (1) In your care, custody or control; and the Additional Coverage, Electronic Data. Electronic data means information, facts or (2) Located in or on the building described computer programs stored as or on, Gre- in the Declarations or in the open (or in ated or used on, or transmitted to or from a vehicle) within 100 feet of the de- computer software (including systems and scribed premises. applications software), on hard or floppy However, our payment for loss of or dam- disks, CD-ROMs, tapes, drives, cells, data age to personal property of others will only processing devices or any other reposito- be for the account of the owner of the prop- ries of computer software which are used erty. with electronically controlled equipment. 2. Property Not Covered The term computer programs, referred to in the foregoing description of electronic data, Covered Property does not include: means a set of related electronic instruc- a. Accounts, bills, currency, food stamps or tions which direct the operations and func- other evidences of debt, money, notes or tions of a computer or device connected to securities. Lottery tickets held for sale are it, which enable the computer or device to not securities, receive, process, store, retrieve or send b. Animals, unless owned by others and data. This paragraph, n., does not apply to boarded by you, or if owned by you, only as your"stock" of prepackaged software; "stock"while inside of buildings; o. The cost to replace or restore the informa- tion on valuable papers and records, includ- ing those which exist as electronic data. d. Bridges, roadways, walks, patios or other Valuable papers and records include but paved surfaces; are not limited to proprietary information, e. Contraband, or property in the course of books of account, deeds, manuscripts, ab- illegal transportation or trade; stracts, drawings and card index systems. f. The cost of excavations, grading, backfilling Refer to the Coverage Extension for Valu- able Papers And Records (Other Than or filling; Electronic Data) for limited coverage for g. Foundations of buildings, structures, ma- valuable papers and records other than chinery or boilers if their foundations are those which exist as electronic data; below: p. Vehicles or self-propelled machines (includ- (1) The lowest basement floor; or ing aircraft or watercraft) that: (2) The surface of the ground, if there is no (1) Are licensed for use on public roads; or basement; (2) Are operated principally away from the h. Land (including land on which the property described premises. is located), water, growing crops or lawns; This paragraph does not apply to: L Personal property while airborne or water- (a) Vehicles or self-propelled machines borne; or autos you manufacture, process j. Bulkheads, pilings, piers, wharves or docks; or warehouse; k. Property that is covered under another (b) Vehicles or self-propelled machines, coverage form of this or any other policy in other than autos, you hold for sale; which it is more specifically described, ex- (c) Rowboats or canoes out of water at cept for the excess of the amount due the described premises; or (whether you can collect on it or not) from that other insurance, (d) Trailers, but only to the extent pro- vided for in the Coverage Extension I. Retaining walls that are not part of a build- for Non-owned Detached Trailers; ing; m. Underground pipes, flues or drains; Page 2 of 15 © ISO Properties, Inc., 2007 CP 00 10 06 07 ❑ q. The following property while outside of (a) The total of the actual debris removal buildings: expense plus the amount we pay for (1) Grain, hay, straw or other crops; direct physical loss or damage ex- ceeds the Limit of Insurance on the (2) Fences, radio or television antennas Covered Property that has sustained (including satellite dishes) and their loss or damage. lead-in wiring, masts or towers, trees, shrubs or plants (other than "stock" of [b) The actual debris removal expense trees, shrubs or plants), all except as exceeds 25% of the sum of the de- provided in the Coverage Extensions. ductible plus the amount that we pay for direct physical loss or damage to 3. Covered Causes Of Loss the Covered Property that has sus- See applicable Causes Of Loss Form as tained loss or damage. shown in the Declarations. Therefore, if (4)(a) and/or (4)(b) apply, 4. Additional Coverages our total payment for direct physical loss a. Debris Removal or damage and debris removal expense may reach but will never exceed the (1) Subject to Paragraphs (3) and (4), we Limit of Insurance on the Covered Prop- will pay your expense to remove debris erty that has sustained loss or damage, of Covered Property caused by or re- plus$10,000. sulting from a Covered Cause of Loss that occurs during the policy period. The ($) Examples expenses will be paid only if they are The following examples assume that reported to us in writing within 180 days there is no Coinsurance penalty. of the date of direct physical loss or EXAMPLE#1 damage. (2) Debris Removal does not apply to costs Limit of Insurance: $ 90,000 to: Amount of Deductible: $ 500 (a) Extract "pollutants" from land or Amount of Loss: $ 50,000 water; or Amount of Loss Payable: $ 49,500 (b) Remove, restore or replace polluted ($50,000—$500) land or water. Debris Removal Expense: $ 10,000 (3) Subject to the exceptions in Paragraph Debris Removal Expense Payable: $ 10,000 (4), the following provisions apply: ° ($10,000 is 20% of$50,000.) (a) The most we will pay for the total of direct physical loss or damage plus The debris removal expense is less than 25% of the debris removal expense is the Limit sum of the loss payable plus the deductible. The sum of Insurance applicable to the Cov- of the loss payable and the debris removal expense ered Property that has sustained ($49,500 + $10,000 = $59,500) is less than the Limit loss or damage. of Insurance. Therefore the full amount of debris (b) Subject to (a) above, the amount we removal expense is payable in accordance with the terms of Paragraph (3). will pay for debris removal expense is limited to 25% of the sum of the EXAMPLE#2 deductible plus the amount that we Limit of Insurance: $ 90,000 pay for direct physical loss or dam- age to the Covered Property that has Amount of Deductible: $ 500 sustained loss or damage. Amount of Loss: $ 80,000 (4) We will pay up to an additional $10,000 Amount of Loss Payable: $ 79,500 for debris removal expense, for each lo- ($80,000—$500) cation, in any one occurrence of physi- Debris Removal Expense: $ 30,000 cal loss or damage to Covered Property, if one or both of the following circum- Debris Removal Expense Payable stances apply: Basic Amount: $ 10,500 Additional Amount: $ 10,000 CP 00 10 06 07 © ISO Properties, Inc., 2007 Page 3 of 16 ❑ The basic amount payable for debris removal ex- d. Pollutant Clean-up And Removal pense under the terms of Paragraph (3) is calculated We will pay your expense to extract "pollut- as follows: $80,000 ($79,500 + $500) x .25 = $20,000; ants" from land or water at the described capped at $10,500. The cap applies because the sum premises if the discharge, dispersal, seep- of the loss payable ($79,500) and the basic amount payable for debris removal expense ($10,500) cannot age, migration, release or escape of the exceed the Limit of Insurance ($90,000). "pollutants" is caused by or results from a Covered Cause of Loss that occurs during The additional amount payable for debris removal the policy period. The expenses will be paid expense is provided in accordance with the terms of only if they are reported to us in writing Paragraph (4), because the debris removal expense within 180 days of the date on which the ($30,000) exceeds 25% of the loss payable plus the Covered Cause of Loss occurs. deductible ($30,000 is 37.5% of $80,000), and be- This Additional Coverage does not apply to cause the sum of the loss payable and debris removal costs to test for, monitor or assess the exis- expense ($79,500 + $30,000 = $109,500) would ex- tence, concentration or effects of "pollut- ceed the Limit of Insurance ($90,000). The additional ants". But we will pay for testing which is amount of covered debris removal expense is performed in the course of extracting the $10,000, the maximum payable under Paragraph (4). "pollutants"from the land or water. Thus the total payable for debris removal expense in this example is $20,500; $9,500 of the debris removal The most we will pay under this Additional expense is not covered. Coverage for each described premises is $10,000 for the sum of all covered ex- b. Preservation Of Property penses arising out of Covered Causes of If it is necessary to move Covered Property Loss occurring during each separate 12- from the described premises to preserve it month period of this policy. from loss or damage by a Covered Cause e. Increased Cost Of Construction of Loss, we will pay for any direct physical loss or damage to that property: (1) This Additional Coverage applies only to buildings to which the Replacement (1) While it is being moved or while tempo- Cost Optional Coverage applies. rarily stored at another location; and (2) In the event of damage by a Covered (2) Only if the loss or damage occurs within Cause of Loss to a building that is Cov- 30 days after the property is first moved. ered Property, we will pay the increased c. Fire Department Service Charge costs incurred to comply with enforce- When the fire department is called to save ment of an ordinance or law in the or protect Covered Property from a Cov- course of repair, rebuilding or replace- ered Cause of Loss, we will pay up to ment of damaged parts of that property, $1,000, unless a higher limit is shown in the subject to the limitations stated in e.(3) Declarations, for your liability for fire de- through e.(9) of this Additional Cover- partment service charges: age. (1) Assumed by contract or agreement prior (3) The ordinance or law referred to in e.(2) to loss; or of this Additional Coverage is an ordi- nance or law that regulates the con- (2) Required by local ordinance. struction or repair of buildings or estab- No Deductible applies to this Additional lishes zoning or land use requirements Coverage. at the described premises, and is in force at the time of loss. Page 4 of 15 © ISO Properties, Inc., 2007 CP 00 10 06 07 ❑ (4) Under this Additional Coverage, we will (ii) Unless the repairs or replace- not pay any costs due to an ordinance ment are made as soon as rea- or law that: sonably possible after the loss or (a) You were required to comply with damage, not to exceed two before the loss, even when the build- years. We may extend this period ing was undamaged; and in writing during the two years. (b) You failed to comply with. (b) If the building is repaired or replaced at the same premises, or if you elect (5) Under this Additional Coverage, we will to rebuild at another premises, the not pay for: most we will pay for the Increased (a) The enforcement of any ordinance or Cost of Construction, subject to the law which requires demolition, repair, provisions of e.(6) of this Additional replacement, reconstruction, remod- Coverage, is the increased cost of eling or remediation of property due construction at the same premises. to contamination by "pollutants" or (c) If the ordinance or law requires relo- due to the presence, growth, prolif- cation to another premises, the most eration, spread or any activity of we will pay for the Increased Cost of "fungus", wet or dry rot or bacteria; Construction, subject to the provi- or sions of e.(6) of this Additional Cov- (b) Any costs associated with the en- erage, is the increased cost of con- forcement of an ordinance or law struction at the new premises. which requires any insured or others (8) This Additional Coverage is not subject to test for, monitor, clean up, re- to the terms of the Ordinance Or Law move, contain, treat, detoxify or neu- Exclusion, to the extent that such Exclu- tralize, or in any way respond to, or sion would conflict with the provisions of assess the effects of "pollutants", this Additional Coverage. "fungus", wet or dry rot or bacteria. (9) The costs addressed in the Loss Pay- (6) The most we will pay under this Addi- ment and Valuation Conditions, and the tional Coverage, for each described Replacement Cost Optional Coverage, building insured under this Coverage in this Coverage Form, do not include Form, is $10,000 or 5% of the Limit of the increased cost attributable to en- Insurance applicable to that building, forcement of an ordinance or law. The whichever is less. If a damaged building amount payable under this Additional is covered under a blanket Limit of In- Coverage, as stated in e.(6) of this Addi- surance which applies to more than one tional Coverage, is not subject to such building or item of property, then the limitation. most we will pay under this Additional Coverage, for that damaged building, is f. Electronic Data the lesser of: $10,000 or 5% times the (1) Under this Additional Coverage, elec- value of the damaged building as of the tronic data has the meaning described time of loss times the applicable Coin- under Property Not Covered, Electronic surance percentage. Data. The amount payable under this Addi- (2) Subject to the provisions of this Addi- tional Coverage is additional insurance. tional Coverage, we will pay for the cost (7) With respect to this Additional Cover- to replace or restore electronic data age: which has been destroyed or corrupted by a Covered Cause of Loss. To the ex- (a) We will not pay for the Increased tent that electronic data is not replaced Cost of Construction: or restored, the loss will be valued at the (i) Until the property is actually re- cost of replacement of the media on paired or replaced, at the same which the electronic data was stored, or another premises; and with blank media of substantially identi- cal type. CP 00 10 06 07 © ISO Properties, Inc., 2007 Page 6 of 16 ❑ (3) The Covered Causes of Loss applicable 5. Coverage Extensions to Your Business Personal Property ap- Except as otherwise provided, the following Ex- ply to this Additional Coverage, Elec- tensions apply to property located in or on the tronic Data, subject to the following: building described in the Declarations or in the (a) If the Causes Of Loss — Special open (or in a vehicle) within 100 feet of the de- Form applies, coverage under this scribed premises. Additional Coverage, Electronic If a Coinsurance percentage of 80% or more, Data, is limited to the "specified or a Value Reporting period symbol, is shown causes of loss" as defined in that in the Declarations, you may extend the insur- form, and Collapse as set forth in ance provided by this Coverage Part as fol- that form. lows. (b) If the Causes Of Loss — Broad Form a. Newly Acquired Or Constructed applies, coverage under this Addi- Property tional Coverage, Electronic Data, in- cludes Collapse as set forth in that (1) Buildings form. If this policy covers Building, you may (c) If the Causes Of Loss Form is en- extend that insurance to apply to: dorsed to add a Covered Cause of (a) Your new buildings while being built Loss, the additional Covered Cause on the described premises; and of Loss does not apply to the cover- (b) Buildings you acquire at locations, age provided under this Additional other than the described premises, Coverage, Electronic Data. intended for: (d) The Covered Causes of Loss include (i) Similar use as the building de- a virus, harmful code or similar in- scribed in the Declarations; or struction introduced into or enacted on a computer system (including (ii) Use as a warehouse. electronic data) or a network to The most we will pay for loss or damage which it is connected, designed to under this Extension is $250,000 at damage or destroy any part of the each building. system or disrupt its normal opera- (2) Your Business Personal Property tion. But there is no coverage for loss or damage caused by or result- (a) If this policy covers Your Business ing from manipulation of a computer Personal Property, you may extend system (including electronic data) by that insurance to apply to: any employee, including a temporary (i) Business personal property, or leased employee, or by an entity including such property that you retained by you or for you to inspect, newly acquire, at any location design, install, modify, maintain, re- you acquire other than at fairs, pair or replace that system. trade shows or exhibitions; (4) The most we will pay under this Addi- (ii) Business personal property, tional Coverage, Electronic Data, is including such property that you $2,500 for all loss or damage sustained newly acquire, located at your in any one policy year, regardless of the newly constructed or acquired number of occurrences of loss or dam- buildings at the location de- age or the number of premises, loca- scribed in the Declarations; or tions or computer systems involved. If loss payment on the first occurrence [iii) Business personal property that does not exhaust this amount, then the you newly acquire, located at the balance is available for subsequent loss described premises. or damage sustained in but not after that The most we will pay for loss or policy year. With respect to an occur- damage under this Extension is rence which begins in one policy year $100,000 at each building. and continues or results in additional loss or damage in a subsequent policy year(s), all loss or damage is deemed to be sustained in the policy year in which the occurrence began. Page 6 of 15 © ISO Properties, Inc., 2007 CP 00 10 06 07 ❑ (b) This Extension does not apply to: c. Valuable Papers And Records (Other (i) Personal property of others that Than Electronic Data) is temporarily in your possession (1) You may extend the insurance that in the course of installing or per- applies to Your Business Personal forming work on such property; or Property to apply to the cost to replace (ii) Personal property of others that or restore the lost information on valu- is temporarily in your possession able papers and records for which dupli- in the course of your manufactur- cates do not exist. But this Extension ing or wholesaling activities. does not apply to valuable papers and records which exist as electronic data. (3) Period Of Coverage Electronic data has the meaning de- With respect to insurance on or at each scribed under Property Not Covered, newly acquired or constructed property, Electronic Data. coverage will end when any of the fol- (2) If the Causes Of Loss — Special Form lowing first occurs: applies, coverage under this Extension (a) This policy expires; is limited to the "specified causes of (b) 30 days expire after you acquire the loss" as defined in that form, and Col- property or begin construction of that lapse as set forth in that form. part of the building that would qualify (3) If the Causes Of Loss — Broad Form as covered property; or applies, coverage under this Extension (c) You report values to us. includes Collapse as set forth in that form. We will charge you additional premium (4) Under this Extension, the most we will for values reported from the date you pay to replace or restore the lost infor- acquire the property or begin construc- mation is $2,500 at each described tion of that part of the building that would premises, unless a higher limit is shown qualify as covered property. in the Declarations. Such amount is ad- b. Personal Effects And Property Of Others ditional insurance. We will also pay for You may extend the insurance that applies the cost of blank material for reproduc- to Your Business Personal Property to ap- ing the records (whether or not dupli- ply to: cates exist), and (when there is a dupli- (1) Personal effects owned by you, your cate) for the cost of labor to transcribe officers, your partners or members, your or copy the records. The costs of blank managers or your employees. This Ex- material and labor are subject to the ap- tension does not apply to loss or dam- plicable Limit of Insurance on Your age by theft. Business Personal Property and there- fore coverage of such costs is not addi- (2) Personal property of others in your care, tional insurance. custody or control. d. Property Off-premises The most we will pay for loss or damage (1) You may extend the insurance provided under this Extension is $2,500 at each de- by this Coverage Form to apply to your scribed premises. Our payment for loss of Covered Property while it is away from or damage to personal property of others the described premises, if it is: will only be for the account of the owner of the property. (a) Temporarily at a location you do not own, lease or operate; (b) In storage at a location you lease, provided the lease was executed af- ter the beginning of the current policy term; or (c) At any fair, trade show or exhibition. CP 00 10 06 07 © ISO Properties, Inc., 2007 Page 7 of 16 ❑ (2) This Extension does not apply to prop- (2) We will not pay for any loss or damage erty: that occurs: (a) In or on a vehicle; or (a) While the trailer is attached to any (b) In the care, custody or control of motor vehicle or motorized convey- your salespersons, unless the prop- ance, whether or not the motor vehi- erty is in such care, custody or con- cle or motorized conveyance is in trol at a fair, trade show or exhibition. motion; (3) The most we will pay for loss or damage (b) During hitching or unhitching opera- under this Extension is $10,000. tions, or when a trailer becomes ac- cidentally unhitched from a motor e. Outdoor Property vehicle or motorized conveyance. You may extend the insurance provided by (3) The most we will pay for loss or damage this Coverage Form to apply to your out- under this Extension is $5,000, unless a door fences, radio and television antennas higher limit is shown in the Declarations. (including satellite dishes), trees, shrubs and plants (other than "stock" of trees, (4) This insurance is excess over the shrubs or plants), including debris removal amount due (whether you can collect on expense, caused by or resulting from any of it or not) from any other insurance cov- the following causes of loss if they are Cov- ered Causes of Loss: Each of these Extensions is additional insurance (1) Fire; unless otherwise indicated. The Additional Condi- tion, Coinsurance, does not apply to these Exten- (2) Lightning; sions. (3) Explosion; B. Exclusions And Limitations (4) Riot or Civil Commotion; or See applicable Causes Of Loss Form as shown in (5) Aircraft. the Declarations. The most we will pay for loss or damage C. Limits Of Insurance under this Extension is $1,000, but not The most we will pay for loss or damage in any more than $250 for any one tree, shrub or one occurrence is the applicable Limit of Insur- plant. These limits apply to any one occur- ance shown in the Declarations. rence, regardless of the types or number of items lost or damaged in that occurrence. The most we will pay for loss or damage to out- door signs, whether or not the sign is attached to a f. Non-owned Detached Trailers building, is$2,500 per sign in any one occurrence. (1) You may extend the insurance that The amounts of insurance stated in the following applies to Your Business Personal Additional Coverages apply in accordance with the Property to apply to loss or damage to terms of such coverages and are separate from trailers that you do not own, provided the Limit(s) of Insurance shown in the Declarations that: for any other coverage: (a) The trailer is used in your business; 1. Fire Department Service Charge; (b) The trailer is in your care, custody or 2. Pollutant Clean-up And Removal; control at the premises described in the Declarations; and 3. Increased Cost Of Construction; and (c) You have a contractual responsibility 4. Electronic Data. to pay for loss or damage to the Payments under the Preservation Of Property Ad- trailer. ditional Coverage will not increase the applicable Limit of Insurance. Page 8 of 15 © ISO Properties, Inc., 2007 CP 00 10 06 07 ❑ D. Deductible EXAMPLE#2 In any one occurrence of loss or damage (herein- (This example, too, assumes there is no Coinsurance after referred to as loss), we will first reduce the penalty.) amount of loss if required by the Coinsurance The Deductible and Limits of Insurance are the same Condition or the Agreed Value Optional Coverage. as those in Example#1. If the adjusted amount of loss is less than or equal to the Deductible, we will not pay for that loss. If Loss to Building#1: $ 70,000 the adjusted amount of loss exceeds the Deducti- (Exceeds Limit of Insurance plus Deductible) ble, we will then subtract the Deductible from the adjusted amount of loss, and will pay the resulting Loss to Building#2: $ 90,000 amount or the Limit of Insurance, whichever is (Exceeds Limit of Insurance plus Deductible) less. Loss Payable— Building #1: $ 60,000 When the occurrence involves loss to more than (Limit of Insurance) one item of Covered Property and separate Limits Loss Payable— Building #2: $ 80,000 of Insurance apply, the losses will not be com- bined in determining application of the Deductible. (Limit of Insurance) But the Deductible will be applied only once per Total amount of loss payable: $ 140,000 occurrence. E. Loss Conditions EXAMPLE#1 The following conditions apply in addition to the (This example assumes there is no Coinsurance Common Policy Conditions and the Commercial penalty.) Property Conditions. Deductible: $ 250 1. Abandonment Limit of Insurance— Building#1: $ 60,000 There can be no abandonment of any property Limit of Insurance— Building#2: $ 80,000 to us. Loss to Building#1: $ 60,100 2. Appraisal Loss to Building#2: $ 90,000 If we and you disagree on the value of the property or the amount of loss, either may The amount of loss to Building #1 ($60,100) is less make written demand for an appraisal of the than the sum ($60,250) of the Limit of Insurance ap- loss. In this event, each party will select a com- plicable to Building#1 plus the Deductible. petent and impartial appraiser. The two ap- The Deductible will be subtracted from the amount of praisers will select an umpire. If they cannot loss in calculating the loss payable for Building#1: agree, either may request that selection be made by a judge of a court having jurisdiction. $ 60,100 The appraisers will state separately the value — 250 of the property and amount of loss. If they fail $ 59,850 Loss Payable— Building#1 to agree, they will submit their differences to the umpire. A decision agreed to by any two The Deductible applies once per occurrence and will be binding. Each party will: therefore is not subtracted in determining the amount a. Pay its chosen appraiser; and of loss payable for Building #2. Loss payable for Building#2 is the Limit of Insurance of$80,000. b. Bear the other expenses of the appraisal Total amount of loss payable: and umpire equally. $59,850 +$80,000 = $139,850 If there is an appraisal, we will still retain our right to deny the claim. CP 00 10 06 07 © ISO Properties, Inc., 2007 Page 9 of 16 ❑ 3. Duties In The Event Of Loss Or Damage 4. Loss Payment a. You must see that the following are done in a. In the event of loss or damage covered by the event of loss or damage to Covered this Coverage Form, at our option, we will Property: either: (1) Notify the police if a law may have been (1) Pay the value of lost or damaged prop- broken. erty; (2) Give us prompt notice of the loss or (2) Pay the cost of repairing or replacing the damage. Include a description of the lost or damaged property, subject to b. property involved. below; (3) As soon as possible, give us a descrip- (3) Take all or any part of the property at an tion of how, when and where the loss or agreed or appraised value; or damage occurred. (4) Repair, rebuild or replace the property (4) Take all reasonable steps to protect the with other property of like kind and qual- Covered Property from further damage, ity, subject to b. below. and keep a record of your expenses We will determine the value of lost or dam- necessary to protect the Covered Prop- aged property, or the cost of its repair or erty, for consideration in the settlement replacement, in accordance with the appli- of the claim. This will not increase the cable terms of the Valuation Condition in Limit of Insurance. However, we will not this Coverage Form or any applicable pro- pay for any subsequent loss or damage vision which amends or supersedes the resulting from a cause of loss that is not Valuation Condition. a Covered Cause of Loss. Also, if feasi- ble, set the damaged property aside and b. The cost to repair, rebuild or replace does in the best possible order for examina- not include the increased cost attributable tion. to enforcement of any ordinance or law (5) At our request, give us complete inven- regulating the construction, use or repair of tories of the damaged and undamaged any property. property. Include quantities, costs, val- c. We will give notice of our intentions within ues and amount of loss claimed. 30 days after we receive the sworn proof of loss. (6) As often as may be reasonably required, permit us to inspect the property proving d. We will not pay you more than your finan- the loss or damage and examine your cial interest in the Covered Property. books and records. e. We may adjust losses with the owners of Also permit us to take samples of dam- lost or damaged property if other than you. aged and undamaged property for in- If we pay the owners, such payments will spection, testing and analysis, and per- satisfy your claims against us for the own- mit us to make copies from your books ers' property. We will not pay the owners and records. more than their financial interest in the Cov- (7) Send us a signed, sworn proof of loss ered Property. containing the information we request to f. We may elect to defend you against suits investigate the claim. You must do this arising from claims of owners of property. within 60 days after our request. We will We will do this at our expense. supply you with the necessary forms. g. We will pay for covered loss or damage (8) Cooperate with us in the investigation or within 30 days after we receive the sworn settlement of the claim. proof of loss, if you have complied with all b. We may examine any insured under oath, of the terms of this Coverage Part and: while not in the presence of any other in- (1) We have reached agreement with you sured and at such times as may be rea- on the amount of loss; or sonably required, about any matter relating (2) An appraisal award has been made. to this insurance or the claim, including an insured's books and records. In the event of an examination, an insured's answers must be signed. Page 10 of 15 © ISO Properties, Inc., 2007 CP 00 10 06 07 ❑ h. A party wall is a wall that separates and is (b) When this policy is issued to the common to adjoining buildings that are owner or general lessee of a build- owned by different parties. In settling cov- ing, building means the entire build- ered losses involving a party wall, we will ing. Such building is vacant unless at pay a proportion of the loss to the party wall least 31% of its total square footage based on your interest in the wall in propor- is: tion to the interest of the owner of the ad- (i) Rented to a lessee or sub-lessee joining building. However, if you elect to re- and used by the lessee or sub- pair or replace your building and the owner lessee to conduct its customary of the adjoining building elects not to repair operations; and/or or replace that building, we will pay you the full value of the loss to the party wall, sub- (ii) Used by the building owner to ject to all applicable policy provisions in- conduct customary operations. cluding Limits of Insurance, the Valuation (2) Buildings under construction or renova- and Coinsurance Conditions and all other tion are not considered vacant. provisions of this Loss Payment Condition. b. Vacancy Provisions Our payment under the provisions of this paragraph does not alter any right of subro- If the building where loss or damage occurs gation we may have against any entity, in- has been vacant for more than 60 consecu- cluding the owner or insurer of the adjoining tive days before that loss or damage oc- building, and does not alter the terms of the curs: Transfer Of Rights Of Recovery Against (1) We will not pay for any loss or damage Others To Us Condition in this policy. caused by any of the following even if 6. Recovered Property they are Covered Causes of Loss: If either you or we recover any property after (a) Vandalism; loss settlement, that party must give the other (b) Sprinkler leakage, unless you have prompt notice. At your option, the property will protected the system against freez- be returned to you. You must then return to us ing; the amount we paid to you for the property. We will pay recovery expenses and the expenses (c) Building glass breakage; to repair the recovered property, subject to the (d) Water damage; Limit of Insurance. (e) Theft; or 6. Vacancy (f) Attempted theft. a. Description Of Terms (2) With respect to Covered Causes of Loss (1) As used in this Vacancy Condition, the other than those listed in b.(1)(a) term building and the term vacant have through b.(1)(f) above, we will reduce the meanings set forth in (1)(a) and the amount we would otherwise pay for (1)(b) below: the loss or damage by 15%. (a) When this policy is issued to a ten- 7. Valuation ant, and with respect to that tenant's We will determine the value of Covered Prop- interest in Covered Property, building erty in the event of loss or damage as follows: means the unit or suite rented or leased to the tenant. Such building is a. At actual cash value as of the time of loss vacant when it does not contain or damage, except as provided in b., c., d. enough business personal property and e. below. to conduct customary operations. b. If the Limit of Insurance for Building satis- fies the Additional Condition, Coinsurance, and the cost to repair or replace the dam- aged building property is $2,500 or less, we will pay the cost of building repairs or re- placement. CP 00 10 06 07 © ISO Properties, Inc., 2007 Page 11 of 16 ❑ The cost of building repairs or replacement 1. Coinsurance does not include the increased cost attrib- If a Coinsurance percentage is shown in the utable to enforcement of any ordinance or Declarations, the following condition applies. law regulating the construction, use or re- pair of any property. a. We will not pay the full amount of any loss if However, the following property will be val- the value of Covered Property at the time of loss times the Coinsurance percentage ued at the actual cash value even when at- shown for it in the Declarations is greater tached to the building: than the Limit of Insurance for the property. (1) Awnings or floor coverings; Instead, we will determine the most we will (2) Appliances for refrigerating, ventilating, pay using the following steps: cooking, dishwashing or laundering; or (1) Multiply the value of Covered Property (3) Outdoor equipment or furniture. at the time of loss by the Coinsurance c. "Stock" you have sold but not delivered at percentage; the selling price less discounts and ex- (2) Divide the Limit of Insurance of the penses you otherwise would have had. property by the figure determined in d. Glass at the cost of replacement with Step (1); safety-glazing material if required by law. (3) Multiply the total amount of loss, before e. Tenants' Improvements and Betterments at: the application of any deductible, by the (1) Actual cash value of the lost or dam- figure determined in Step (2); and aged property if you make repairs (4) Subtract the deductible from the figure promptly. determined in Step (3). (2) A proportion of your original cost if you We will pay the amount determined in Step do not make repairs promptly. We will (4) or the limit of insurance, whichever is determine the proportionate value as fol- less. For the remainder, you will either have lows: to rely on other insurance or absorb the (a) Multiply the original cost by the num- loss yourself. ber of days from the loss or damage EXAMPLE#1 (UNDERINSURANCE) to the expiration of the lease; and When: The value of the property is: $250,000 (b) Divide the amount determined in (a) The Coinsurance percentage above by the number of days from for it is: 80% the installation of improvements to The Limit of Insurance for it is: $100,000 the expiration of the lease. If your lease contains a renewal option, The Deductible is: $ 250 the expiration of the renewal option pe- The amount of loss is: $ 40,000 riod will replace the expiration of the Step (1): $250,000 x 80% = $200,000 lease in this procedure. (the minimum amount of insurance to (3) Nothing if others pay for repairs or re- meet your Coinsurance requirements) placement. Step (2): $100,000 : $200,000 = .50 F. Additional Conditions Step (3): $40,000 x .50 = $20,000 The following conditions apply in addition to the Step (4): $20,000 —$250 = $19,750 Common Policy Conditions and the Commercial Property Conditions. We will pay no more than $19,750. The remaining $20,250 is not covered. Page 12 of 15 © ISO Properties, Inc., 2007 CP 00 10 06 07 ❑ EXAMPLE#2 (ADEQUATE INSURANCE) 2. Mortgageholders When: The value of the property is: $250,000 a. The term mortgageholder includes trustee. The Coinsurance percentage b. We will pay for covered loss of or damage for it is: 80% to buildings or structures to each mort- The Limit of Insurance for it is: $200,000 gageholder shown in the Declarations in their order of precedence, as interests may The Deductible is: $ 250 appear. The amount of loss is: $ 40,000 c. The mortgageholder has the right to receive The minimum amount of insurance to meet your Co- loss payment even if the mortgageholder insurance requirement is $200,000 ($250,000 x 80%). has started foreclosure or similar action on Therefore, the Limit of Insurance in this example is the building or structure. adequate and no penalty applies. We will pay no d. If we deny your claim because of your acts more than $39,750 ($40,000 amount of loss minus or because you have failed to comply with the deductible of$250). the terms of this Coverage Part, the mort- b. If one Limit of Insurance applies to two or gageholder will still have the right to receive more separate items, this condition will ap- loss payment if the mortgageholder: ply to the total of all property to which the (1) Pays any premium due under this Cov- limit applies. erage Part at our request if you have EXAMPLE#3 failed to do so; (2) Submits a signed, sworn proof of loss When: The value of the property is: within 60 days after receiving notice Building at Location #1: $ 75,000 from us of your failure to do so; and Building at Location #2: $100,000 (3) Has notified us of any change in owner- Personal Property ship, occupancy or substantial change at Location #2: $ 75,000 in risk known to the mortgageholder. $250,000 All of the terms of this Coverage Part will The Coinsurance percentage then apply directly to the mortgageholder. for it is: 90% e. If we pay the mortgageholder for any loss The Limit of Insurance for or damage and deny payment to you be- Buildings and Personal Property cause of your acts or because you have at Locations#1 and #2 is: $180,000 failed to comply with the terms of this Cov- The Deductible is: $ 1,000 erage Part: The amount of loss is: (1) The mortgageholder's rights under the mortgage will be transferred to us to the Building at Location #2: $ 30,000 extent of the amount we pay; and Personal Property (2) The mortgageholder's right to recover at Location #2: $ 20,000 the full amount of the mortgageholder's $ 50,000 claim will not be impaired. Step (1): $250,000 x 90% _ $225,000 At our option, we may pay to the mortgage- (the minimum amount of insurance to holder the whole principal on the mortgage meet your Coinsurance requirements plus any accrued interest. In this event, and to avoid the penalty shown below) your mortgage and note will be transferred Step (2): $180,000 : $225,000 = .80 to us and you will pay your remaining mort- Step (3): $50,000 x .80 = $40,000 gage debt to us. f. If we cancel this policy, we will give written Step (4): $40,000 —$1,000 = $39,000 notice to the mortgageholder at least: We will pay no more than $39,000. The remaining (1) 10 days before the effective date of $11,000 is not covered. cancellation if we cancel for your non- payment of premium; or (2) 30 days before the effective date of cancellation if we cancel for any other reason. CP 00 10 06 07 © ISO Properties, Inc., 2007 Page 13 of 16 ❑ g. If we elect not to renew this policy, we will EXAMPLE give written notice to the mortgageholder at If: The applicable Limit of Insurance is: $ 100,000 least 10 days before the expiration date of this policy. The annual percentage increase is: 8% G. Optional Coverages The number of days since the If shown as applicable in the Declarations, the fol- beginning of the policy year lowing Optional Coverages apply separately to (or last policy change) is: 146 each item. The amount of increase is: 1. Agreed Value $100,000 x .08 x 146 : 365 = $ 3,200 a. The Additional Condition, Coinsurance, 3. Replacement Cost does not apply to Covered Property to a. Replacement Cost (without deduction for which this Optional Coverage applies. We depreciation) replaces Actual Cash Value in will pay no more for loss of or damage to the Valuation Loss Condition of this Cover- that property than the proportion that the age Form. Limit of Insurance under this Coverage Part b. This Optional Coverage does not apply to: for the property bears to the Agreed Value shown for it in the Declarations. (1) Personal property of others; b. If the expiration date for this Optional Cov- (2) Contents of a residence; erage shown in the Declarations is not ex- (3) Works of art, antiques or rare articles, tended, the Additional Condition, Coinsur- including etchings, pictures, statuary, ance, is reinstated and this Optional Cover- marbles, bronzes, porcelains and bric-a- age expires. bract or c. The terms of this Optional Coverage apply (4) "Stock", unless the Including "Stock" only to loss or damage that occurs: option is shown in the Declarations. (1) On or after the effective date of this Under the terms of this Replacement Cost Optional Coverage; and Optional Coverage, tenants' improvements (2) Before the Agreed Value expiration date and betterments are not considered to be shown in the Declarations or the policy the personal property of others. expiration date, whichever occurs first. c. You may make a claim for loss or damage 2. Inflation Guard covered by this insurance on an actual cash a. The Limit of Insurance for property to which value basis instead of on a replacement this Optional Coverage applied will auto- cost basis. In the event you elect to have matically increase by the annual percent- loss or damage settled on an actual cash age shown in the Declarations. value basis, you may still make a claim for the additional coverage this Optional Cov- b. The amount of increase will be: erage provides if you notify us of your intent (1) The Limit of Insurance that applied on to do so within 180 days after the loss or the most recent of the policy inception damage. date, the policy anniversary date, or any d. We will not pay on a replacement cost basis other policy change amending the Limit for any loss or damage: of Insurance, times (1) Until the lost or damaged property is (2) The percentage of annual increase actually repaired or replaced; and shown in the Declarations, expressed as (2) Unless the repairs or replacement are a decimal (example: 8% is .08), times made as soon as reasonably possible (3) The number of days since the beginning after the loss or damage. of the current policy year or the effective date of the most recent policy change amending the Limit of Insurance, divided by 365. Page 14 of 15 © ISO Properties, Inc., 2007 CP 00 10 06 07 ❑ With respect to tenants' improvements and 4. Extension Of Replacement Cost To betterments, the following also apply: Personal Property Of Others (3) If the conditions in d.(1) and d.(2) above a. If the Replacement Cost Optional Coverage are not met, the value of tenants' im- is shown as applicable in the Declarations, provements and betterments will be de- then this Extension may also be shown as termined as a proportion of your original applicable. If the Declarations show this Ex- cost, as set forth in the Valuation Loss tension as applicable, then Paragraph Condition of this Coverage Form; and 3.b.(1) of the Replacement Cost Optional (4) We will not pay for loss or damage to Coverage is deleted and all other provisions tenants' improvements and betterments of the Replacement Cost Optional Cover- if others pay for repairs or replacement. age apply to replacement cost on personal e. We will not pay more for loss or damage on property of others. a replacement cost basis than the least of b. With respect to replacement cost on the (1), (2) or(3), subject to f. below: personal property of others, the following (1) The Limit of Insurance applicable to the limitation applies: lost or damaged property; If an item(s) of personal property of others is subject to a written contract which gov- (2) The cost to replace the lost or damaged erns your liability for loss or damage to that property with other property: item(s), then valuation of that item(s) will be (a) Of comparable material and quality; based on the amount for which you are Ii- and able under such contract, but not to exceed (b) Used for the same purpose, or the lesser of the replacement cost of the property or the applicable Limit of Insur- (3) The amount actually spent that is nec- ance. essary to repair or replace the lost or damaged property. H. Definitions If a building is rebuilt at a new premises, the 1. "Fungus" means any type or form of fungus, cost described in e.(2) above is limited to including mold or mildew, and any mycotoxins, the cost which would have been incurred if spores, scents or by-products produced or re- the building had been rebuilt at the original leased by fungi. premises. 2. "Pollutants" means any solid, liquid, gaseous or f. The cost of repair or replacement does not thermal irritant or contaminant, including include the increased cost attributable to smoke, vapor, soot, fumes, acids, alkalis, enforcement of any ordinance or law regu- chemicals and waste. Waste includes materials lating the construction, use or repair of any to be recycled, reconditioned or reclaimed. property. 3. "Stock" means merchandise held in storage or for sale, raw materials and in-process or fin- ished goods, including supplies used in their packing or shipping. CP 00 10 06 07 © ISO Properties, Inc., 2007 Page 15 of 16 ❑ COMMERCIAL PROPERTY CP 10 30 06 07 CAUSES OF LOSS - SPECIAL FORM Words and phrases that appear in quotation marks have special meaning. Refer to Section G., Definitions. A. Covered Causes Of Loss (4) Earth sinking (other than sinkhole col- When Special is shown in the Declarations, Cov- lapse), rising or shifting including soil ered Causes of Loss means Risks Of Direct conditions which cause settling, crack- Physical Loss unless the loss is: ing or other disarrangement of founda- tions or other parts of realty. Soil condi- 1. Excluded in Section B., Exclusions; or tions include contraction, expansion, 2. Limited in Section C., Limitations; freezing, thawing, erosion, improperly that follow. compacted soil and the action of water B. Exclusions under the ground surface. But if Earth Movement, as described in 1. We will not pay for loss or damage caused b.(1) through (4) above, results in fire or directly or indirectly by any of the following. explosion, we will pay for the loss or dam- Such loss or damage is excluded regardless of age caused by that fire or explosion. any other cause or event that contributes con- currently or in any sequence to the loss. ($) Volcanic eruption, explosion or effusion. But if volcanic eruption, explosion or ef- a. Ordinance Or Law fusion results in fire, building glass The enforcement of any ordinance or law: breakage or Volcanic Action, we will pay (1) Regulating the construction, use or for the loss or damage caused by that repair of any property; or fire, building glass breakage or Volcanic Action. (2) Requiring the tearing down of any prop- Volcanic Action means direct loss or erty, including the cost of removing its damage resulting from the eruption of a debris. volcano when the loss or damage is This exclusion, Ordinance Or Law, applies caused by: whether the loss results from: (a) Airborne volcanic blast or airborne (a) An ordinance or law that is enforced shock waves; even if the property has not been (b) Ash, dust or particulate matter; or damaged; or (b) The increased costs incurred to (c) Lava flow. comply with an ordinance or law in All volcanic eruptions that occur within the course of construction, repair, any 168-hour period will constitute a renovation, remodeling or demolition single occurrence. of property, or removal of its debris, Volcanic Action does not include the following a physical loss to that cost to remove ash, dust or particulate property. matter that does not cause direct physi- b. Earth Movement cal loss or damage to the described (1) Earthquake, including any earth sinking, property. rising or shifting related to such event; c. Governmental Action (2) Landslide, including any earth sinking, Seizure or destruction of property by order rising or shifting related to such event, of governmental authority. (3) Mine subsidence, meaning subsidence But we will pay for loss or damage caused of a man-made mine, whether or not by or resulting from acts of destruction or- mining activity has ceased, dered by governmental authority and taken at the time of a fire to prevent its spread, if the fire would be covered under this Cover- age Part. CP 10 30 06 07 © ISO Properties, Inc., 2007 Page 1 of 10 ❑ d. Nuclear Hazard g. Water Nuclear reaction or radiation, or radioactive (1) Flood, surface water, waves, tides, tidal contamination, however caused. waves, overflow of any body of water, or But if nuclear reaction or radiation, or radio- their spray, all whether driven by wind or active contamination, results in fire, we will not; pay for the loss or damage caused by that (2) Mudslide or mudflow; fire. (3) Water that backs up or overflows from a e. Utility Services sewer, drain or sump; or The failure of power, communication, water (4) Water under the ground surface press- or other utility service supplied to the de- ing on, or flowing or seeping through: scribed premises, however caused, if the (a) Foundations, walls, floors or paved failure: surfaces; (1) Originates away from the described (b) Basements, whether paved or not; or premises; or (2) Originates at the described premises (c) Doors, windows or other openings. but only if such failure involves equip- But if Water, as described in g.(1) through ment used to supply the utility service to g.(4) above, results in fire, explosion or the described premises from a source sprinkler leakage, we will pay for the loss or away from the described premises. damage caused by that fire, explosion or Failure of any utility service includes lack of sprinkler leakage. sufficient capacity and reduction in supply. h. "Fungus", Wet Rot, Dry Rot And Loss or damage caused by a surge of Bacteria power is also excluded, if the surge would Presence, growth, proliferation, spread or not have occurred but for an event causing any activity of "fungus", wet or dry rot or a failure of power. bacteria. But if the failure or surge of power, or the But if"fungus", wet or dry rot or bacteria re- failure of communication, water or other util- sults in a specified cause of loss , we will ity service, results in a Covered Cause of pay for the loss or damage caused by that Loss, we will pay for the loss or damage "specified cause of loss". caused by that Covered Cause of Loss. This exclusion does not apply: Communication services include but are not 1. When "fungus", wet or dry rot or bacteria limited to service relating to Internet access results from fire or lightning; or or access to any electronic, cellular or satel- 2. To the extent that coverage is provided lite network. in the Additional Coverage — Limited f. War And Military Action Coverage For "Fungus", Wet Rot, Dry (1) War, including undeclared or civil war; Rot And Bacteria with respect to loss or (2) Warlike action by a military force includ- damage by a cause of loss other than fire or lightning. ing action in hindering or defending against an actual or expected attack, by Exclusions B.1.a. through B.1.h. apply whether any government, sovereign or other au- or not the loss event results in widespread thority using military personnel or other damage or affects a substantial area. agents; or 2. We will not pay for loss or damage caused by (3) Insurrection, rebellion, revolution, or resulting from any of the following: usurped power, or action taken by gov- a. Artificially generated electrical, magnetic or ernmental authority in hindering or de- electromagnetic energy that damages, dis- fending against any of these. turbs, disrupts or otherwise interferes with any: (1) Electrical or electronic wire, device, appliance, system or network; or (2) Device, appliance, system or network utilizing cellular or satellite technology. Page 2 of 10 © ISO Properties, Inc., 2007 CP 10 30 06 07 ❑ For the purpose of this exclusion, electrical, e. Explosion of steam boilers, steam pipes, magnetic or electromagnetic energy in- steam engines or steam turbines owned or cludes but is not limited to: leased by you, or operated under your con- (a) Electrical current, including arcing; trol. But if explosion of steam boilers, steam pipes, steam engines or steam turbines re- (b) Electrical charge produced or con- sults in fire or combustion explosion, we will ducted by a magnetic or electromag- pay for the loss or damage caused by that netic field; fire or combustion explosion. We will also (c) Pulse of electromagnetic energy; or pay for loss or damage caused by or result- (d) Electromagnetic waves or micro- ing from the explosion of gases or fuel waves. within the furnace of any fired vessel or within the flues or passages through which But if fire results, we will pay for the loss or the gases of combustion pass. damage caused by that fire. f. Continuous or repeated seepage or leak- b. Delay, loss of use or loss of market. age of water, or the presence or condensa- c. Smoke, vapor or gas from agricultural tion of humidity, moisture or vapor, that oc- smudging or industrial operations. curs over a period of 14 days or more. d. (1) Wear and tear, g. Water, other liquids, powder or molten (2) Rust or other corrosion, decay, deterio- material that leaks or flows from plumbing, ration, hidden or latent defect or any heating, air conditioning or other equipment quality in property that causes it to dam- (except fire protective systems) caused by age or destroy itself; or resulting from freezing, unless: (1) You do your best to maintain heat in the (3) Smo g^ building or structure; or (4) Settling, cracking, shrinking or expan- (2) You drain the equipment and shut off sion; the supply I if the heat is not maintained. (5) Nesting or infestation, or discharge or h. Dishonest or criminal act by you, any of release of waste products or secretions, your partners, members, officers, manag- by insects, birds, rodents or other ani- ers, employees (including leased employ- mals. ees), directors, trustees, authorized repre- (6) Mechanical breakdown, including rup- sentatives or anyone to whom you entrust ture or bursting caused by centrifugal the property for any purpose: force. But if mechanical breakdown re- (1) Acting alone or in collusion with others; sults in elevator collision, we will pay for or the loss or damage caused by that ele- vator collision. (2) Whether or not occurring during the (7) The following causes of loss to personal hours of employment. property: This exclusion does not apply to acts of de- (a) Dampness or dryness of atmos- struction by your employees (including phere; leased employees); but theft by employees (including leased employees) is not cov- (b) Changes in or extremes of tempera- ered. tures or L Voluntary parting with any property by you (c) Marring or scratching. or anyone else to whom you have entrusted But if an excluded cause of loss that is the property if induced to do so by any listed in 2.d.(1) through (7) results in a fraudulent scheme, trick, device or false "specified cause of loss" or building glass pretense. breakage, we will pay for the loss or dam- j. Rain, snow, ice or sleet to personal prop- age caused by that "specified cause of erty in the open. loss" or building glass breakage. CP 10 30 06 07 © ISO Properties, Inc., 2007 Page 3 of 10 ❑ k. Collapse, including any of the following a. Weather conditions. But this exclusion only conditions of property or any part of the applies if weather conditions contribute in property: any way with a cause or event excluded in (1) An abrupt falling down or caving in; Paragraph 1. above to produce the loss or (2) Loss of structural integrity, including damage. separation of parts of the property or b. Acts or decisions, including the failure to act property in danger of falling down or or decide, of any person, group, organiza- caving in; or tion or governmental body. (3) Any cracking, bulging, sagging, bending, c. Faulty, inadequate or defective: leaning, settling, shrinkage or expansion (1) Planning, zoning, development, survey- as such condition relates to (1) or (2) ing, siting; above. (2) Design, specifications, workmanship, But if collapse results in a Covered Cause repair, construction, renovation, remod- of Loss at the described premises, we will eling, grading, compaction; pay for the loss or damage caused by that (3) Materials used in repair, construction, Covered Cause of Loss. renovation or remodeling; or This exclusion, k., does not apply: (4) Maintenance; (a) To the extent that coverage is pro- of part or all of any property on or off the vided under the Additional Coverage described premises. —Collapse; or (b) To collapse caused by one or more 4. Special Exclusions of the following: The following provisions apply only to the (i) The "specified causes of loss"; specified Coverage Forms. a. Business Income (And Extra Expense) (ii) Breakage of building glass; Coverage Form, Business Income (iii) Weight of rain that collects on a (Without Extra Expense) Coverage Form, roof; or Or Extra Expense Coverage Form (iv) Weight of people or personal We will not pay for: property. (1) Any loss caused by or resulting from: I. Discharge, dispersal, seepage, migration, (a) Damage or destruction of "finished release or escape of "pollutants" unless the stock"; or discharge, dispersal, seepage, migration, release or escape is itself caused by any of (b) The time required to reproduce "fin- the "specified causes of loss". But if the dis- ished stock". charge, dispersal, seepage, migration, re- This exclusion does not apply to Extra lease or escape of "pollutants" results in a Expense. "specified cause of loss", we will pay for the (2) Any loss caused by or resulting from loss or damage caused by that "specified direct physical loss or damage to radio cause of loss". or television antennas (including satellite This exclusion, I., does not apply to dam- dishes) and their lead-in wiring, masts or age to glass caused by chemicals applied towers. to the glass. (3) Any increase of loss caused by or re- m. Neglect of an insured to use all reasonable sulting from: means to save and preserve property from (a) Delay in rebuilding, repairing or further damage at and after the time of loss. replacing the property or resuming 3. We will not pay for loss or damage caused by 'operations", due to interference at or resulting from any of the following, 3.a. the location of the rebuilding, repair through 3.c. But if an excluded cause of loss or replacement by strikers or other that is listed in 3.a. through 3.c. results in a persons; or Covered Cause of Loss, we will pay for the loss or damage caused by that Covered Cause of Loss. Page 4 of 10 © ISO Properties, Inc., 2007 CP 10 30 06 07 ❑ (b) Suspension, lapse or cancellation of (2) The following additional exclusions any license, lease or contract. But if apply to insurance under this Coverage the suspension, lapse or cancellation Form: is directly caused by the "suspen- (a) Contractual Liability sion" of 'operations", we will cover such loss that affects your Business We will not defend any claim or Income during the "period of restora- "suit", or pay damages that you are tion" and any extension of the "pe- legally liable to pay, solely by reason riod of restoration" in accordance of your assumption of liability in a with the terms of the Extended Busi- contract or agreement. But this ex- ness Income Additional Coverage clusion does not apply to a written and the Extended Period Of Indem- lease agreement in which you have nity Optional Coverage or any varia- assumed liability for building damage tion of these. resulting from an actual or attempted (4) Any Extra Expense caused by or result- burglary or robbery, provided that: ing from suspension, lapse or cancella- (i) Your assumption of liability was tion of any license, lease or contract be- executed prior to the accident; yond the "period of restoration". and (5) Any other consequential loss. (ii) The building is Covered Property b. Leasehold Interest Coverage Form under this Coverage Form. (1) Paragraph 113.1.a.,., Ordinance Or Law, (b) Nuclear Hazard does not apply to insurance under this We will not defend any claim or Coverage Form. "suit", or pay any damages, loss, (2) We will not pay for any loss caused by: expense or obligation, resulting from nuclear reaction or radiation, or (a) Your cancelling the lease; radioactive contamination, however (b) The suspension, lapse or cancella- caused. tion of any license; or 5. Additional Exclusion (c) Any other consequential loss. The following provisions apply only to the c. Legal Liability Coverage Form specified property. (1) The following exclusions do not apply to LOSS OR DAMAGE TO PRODUCTS insurance under this Coverage Form: We will not pay for loss or damage to any mer- (a) Paragraph 113.1.a., Ordinance Or chandise, goods or other product caused by or Law; resulting from error or omission by any person or entity (including those having possession (b) Paragraph 113.1.c., Governmental under an arrangement where work or a portion Action; of the work is outsourced) in any stage of the (c) Paragraph 113.1.d., Nuclear Hazard; development, production or use of the product, (d) Paragraph 113.1.e., Utility Services; including planning, testing, processing, pack- and aging, installation, maintenance or repair. This exclusion applies to any effect that compro- (e) Paragraph 113.1.f., War And Military mises the form, substance or quality of the Action. product. But if such error or omission results in a Covered Cause of Loss, we will pay for the loss or damage caused by that Covered Cause of Loss. CP 10 30 06 07 © ISO Properties, Inc., 2007 Page 6 of 10 ❑ C. Limitations 2. We will not pay for loss of or damage to the The following limitations apply to all policy forms following types of property unless caused by and endorsements, unless otherwise stated. the "specified causes of loss" or building glass 1. We will not pay for loss of or damage to prop- breakage: erty, as described and limited in this section. In a. Animals, and then only if they are killed or addition, we will not pay for any loss that is a their destruction is made necessary. consequence of loss or damage as described b. Fragile articles such as statuary, marbles, and limited in this section. chinaware and porcelains, if broken. This a. Steam boilers, steam pipes, steam engines restriction does not apply to: or steam turbines caused by or resulting (1) Glass; or from any condition or event inside such (2) Containers of property held for sale. equipment. But we will pay for loss of or damage to such equipment caused by or c. Builders' machinery, tools and equipment resulting from an explosion of gases or fuel owned by you or entrusted to you, provided within the furnace of any fired vessel or such property is Covered Property. within the flues or passages through which However, this limitation does not apply: the gases of combustion pass. (1) If the property is located on or within b. Hot water boilers or other water heating 100 feet of the described premises, equipment caused by or resulting from any unless the premises is insured under the condition or event inside such boilers or Builders Risk Coverage Form; or equipment, other than an explosion. (2) To Business Income Coverage or to c. The interior of any building or structure, or Extra Expense Coverage. to personal property in the building or struc- 3. The special limit shown for each category, a. ture, caused by or resulting from rain, snow, through d., is the total limit for loss of or dam- sleet, ice, sand or dust, whether driven by age to all property in that category. The special wind or not, unless: limit applies to any one occurrence of theft, re- (1) The building or structure first sustains gardless of the types or number of articles that damage by a Covered Cause of Loss to are lost or damaged in that occurrence. The its roof or walls through which the rain, special limits are: snow, sleet, ice, sand or dust enters; or a. $2,500 for furs, fur garments and garments (2) The loss or damage is caused by or trimmed with fur. results from thawing of snow, sleet or b. $2,500 for jewelry, watches, watch move- ice on the building or structure. ments, jewels, pearls, precious and semi- d. Building materials and supplies not at- precious stones, bullion, gold, silver, plati- tached as part of the building or structure, num and other precious alloys or metals. caused by or resulting from theft. This limit does not apply to jewelry and However, this limitation does not apply to: watches worth $100 or less per item. (1) Building materials and supplies held for c. $2,500 for patterns, dies, molds and forms. sale by you, unless they are insured un- d. $250 for stamps, tickets, including lottery der the Builders Risk Coverage Form; or tickets held for sale, and letters of credit. (2) Business Income Coverage or Extra These special limits are part of, not in addition Expense Coverage. to, the Limit of Insurance applicable to the Cov- e. Property that is missing, where the only ered Property. evidence of the loss or damage is a short- This limitation, C.3., does not apply to Busi- age disclosed on taking inventory, or other ness Income Coverage or to Extra Expense instances where there is no physical evi- Coverage. dence to show what happened to the grop- e rty. f. Property that has been transferred to a person or to a place outside the described premises on the basis of unauthorized in- structions. Page 6 of 10 © ISO Properties, Inc., 2007 CP 10 30 06 07 ❑ 4. We will not pay the cost to repair any defect to 3. This Additional Coverage — Collapse does a system or appliance from which water, other not apply to: liquid, powder or molten material escapes. But a. A building or any part of a building that is in we will pay the cost to repair or replace dam- danger of falling down or caving in; aged parts of fire-extinguishing equipment if the damage: b. A part of a building that is standing, even if a. Results in discharge of any substance from it has separated from another part of the an automatic fire protection system; or building; or c. A building that is standing or any part of a b. Is directly caused by freezing. building that is standing, even if it shows However, this limitation does not apply to Busi- evidence of cracking, bulging, sagging, ness Income Coverage or to Extra Expense bending, leaning, settling, shrinkage or ex- Coverage. pansion. D. Additional Coverage—Collapse 4. With respect to the following property: The coverage provided under this Additional Cov- a. Outdoor radio or television antennas (in- erage — Collapse applies only to an abrupt col- cluding satellite dishes) and their lead-in lapse as described and limited in D.1.through D.7. wiring, masts or towers; 1. For the purpose of this Additional Coverage — b. Awnings, gutters and downspouts; Collapse, abrupt collapse means an abrupt fal- c. Yard fixtures; ling down or caving in of a building or any part of a building with the result that the building or d. Outdoor swimming pools; part of the building cannot be occupied for its e. Fences; intended purpose. f. Piers, wharves and docks; 2. We will pay for direct physical loss or damage g. Beach or diving platforms or appurte- to Covered Property, caused by abrupt col- lapse of a building or any part of a building that nances; is insured under this Coverage Form or that h. Retaining walls; and contains Covered Property insured under this i. Walks, roadways and other paved surfaces; Coverage Form, if such collapse is caused by if an abrupt collapse is caused by a cause of one or more of the following: loss listed in 2.a. through 2.d., we will pay for loss or damage to that property only if: a. Building decay that is hidden from view, (1) Such loss or damage is a direct result of unless the presence of such decay is the abrupt collapse of a building insured known to an insured prior to collapse; under this Coverage Form; and b. Insect or vermin damage that is hidden (2) The property is Covered Property under from view, unless the presence of such this Coverage Form. damage is known to an insured prior to col- 5. If personal property abruptly falls down or lapse; caves in and such collapse is not the result of c. Use of defective material or methods in abrupt collapse of a building, we will pay for construction, remodeling or renovation if the loss or damage to Covered Property caused by abrupt collapse occurs during the course of such collapse of personal property only if: the construction, remodeling or renovation. a. The collapse of personal property was d. Use of defective material or methods in caused by a cause of loss listed in 2.a. construction, remodeling or renovation if the through 2.d.; abrupt collapse occurs after the construc- b. The personal property which collapses is tion, remodeling or renovation is complete but only if the collapse is caused in part by: inside a building; and (1) A cause of loss listed in 2.a. or 2.b.; c. The property which collapses is not of a kind listed in 4., regardless of whether that (2) One or more of the "specified causes of kind of property is considered to be per- loss"; sonal property or real property. (3) Breakage of building glass; The coverage stated in this Paragraph 5. does (4) Weight of people or personal property; not apply to personal property if marring and/or or scratching is the only damage to that personal (5) Weight of rain that collects on a roof. property caused by the collapse. CP 10 30 06 07 © ISO Properties, Inc., 2007 Page 7 of 10 ❑ 6. This Additional Coverage — Collapse does not 3. The coverage described under E.2. of this apply to personal property that has not abruptly Limited Coverage is limited to $15,000. Be- fallen down or caved in, even if the personal gardless of the number of claims, this limit is property shows evidence of cracking, bulging, the most we will pay for the total of all loss or sagging, bending, leaning, settling, shrinkage damage arising out of all occurrences of or expansion. "specified causes of loss" (other than fire or 7. This Additional Coverage — Collapse will not lightning) and Flood which take place in a 12- increase the Limits of Insurance provided in month period (starting with the beginning of the this Coverage Part. present annual policy period). With respect to a particular occurrence of loss which results in 8. The term Covered Cause of Loss includes the Additional Coverage — Colla se as described "fungus", or dry rot or bacteria, we will not g p pay more than a total of $15,000 even if the and limited in D.1. through D.7. "fungus", wet or dry rot or bacteria continues to E. Additional Coverage— Limited Coverage For be present or active, or recurs, in a later policy "Fungus", Wet Rot, Dry Rot And Bacteria period. 1. The coverage described in E.2. and E.6. only 4. The coverage provided under this Limited applies when the "fungus", wet or dry rot or Coverage does not increase the applicable bacteria is the result of one or more of the fol- Limit of Insurance on any Covered Property. If lowing causes that occurs during the policy pe- a particular occurrence results in loss or dam- riod and only if all reasonable means were age by "fungus", wet or dry rot or bacteria, and used to save and preserve the property from other loss or damage, we will not pay more, for further damage at the time of and after that oc- the total of all loss or damage, than the appli- currence. cable Limit of Insurance on the affected Cov- a. A "specified cause of loss" other than fire or ered Property. lightning; or If there is covered loss or damage to Covered b. Flood, if the Flood Coverage Endorsement Property, not caused by"fungus", wet or dry rot applies to the affected premises. or bacteria, loss payment will not be limited by the terms of this Limited Coverage, except to 2. We will pay for loss or damage by "fungus", the extent that "fungus", wet or dry rot or bacte- wet or dry rot or bacteria. As used in this Lim- ria causes an increase in the loss. Any such ited Coverage, the term loss or damage increase in the loss will be subject to the terms means: of this Limited Coverage. a. Direct physical loss or damage to Covered 5. The terms of this Limited Coverage do not Property caused by "fungus", wet or dry rot increase or reduce the coverage provided un- or bacteria, including the cost of removal of der Paragraph F.2. (Water Damage, Other Liq- the "fungus", wet or dry rot or bacteria; uids, Powder Or Molten Material Damage) of b. The cost to tear out and replace any part of this Causes Of Loss Form or under the Addi- the building or other property as needed to tional Coverage—Collapse. gain access to the "fungus", wet or dry rot 6. The following, 6.a. or 6.b., applies only if Busi- or bacteria; and ness Income and/or Extra Expense Coverage c. The cost of testing performed after removal, applies to the described premises and only if repair, replacement or restoration of the the "suspension" of 'operations" satisfies all damaged property is completed, provided terms and conditions of the applicable Busi- there is a reason to believe that "fungus", ness Income and/or Extra Expense Coverage wet or dry rot or bacteria are present. Form. Page 8 of 10 © ISO Properties, Inc., 2007 CP 10 30 06 07 ❑ a. If the loss which resulted in "fungus", wet or This Coverage Extension is additional insur- dry rot or bacteria does not in itself necessi- ance. The Additional Condition, Coinsurance, tate a "suspension" of "operations", but does not apply to this Extension. such "suspension" is necessary due to loss 2. Water Damage, Other Liquids, Powder Or or damage to property caused by "fungus", Molten Material Damage wet or dry rot or bacteria, then our payment under Business Income and/or Extra Ex- If loss or damage caused by or resulting from pense is limited to the amount of loss covered water or other liquid, powder or molten and/or expense sustained in a period of not material damage loss occurs, we will also pay more than 30 days. The days need not be the cost to tear out and replace any part of the consecutive. building or structure to repair damage to the b. If a covered "suspension" of "operations" system or appliance from which the water or other substance escapes. This Coverage Ex- "fungus", wet or dry rot or bacteria but was caused by loss or damage other than tension does not increase the Limit of Insur- remediation of "fungus", wet or dry rot or ance. bacteria prolongs the "period of restoration", 3. Glass we will pay for loss and/or expense sus- a. We will pay for expenses incurred to put up tained during the delay (regardless of when temporary plates or board up openings if such a delay occurs during the "period of repair or replacement of damaged glass is restoration"), but such coverage is limited to delayed. 30 days. The days need not be consecu- b. We will pay for expenses incurred to re- tive. move or replace obstructions when repair- F. Additional Coverage Extensions ing or replacing glass that is part of a build- 1. Property In Transit ing. This does not include removing or re- This Extension applies only to your personal placing window displays. property to which this form applies. This Coverage Extension, F.3., does not in- a. You may extend the insurance provided by crease the Limit of Insurance. this Coverage Part to apply to your per- G. Definitions sonal property (other than property in the 1. "Fungus" means any type or form of fungus, care, custody or control of your salesper- including mold or mildew, and any mycotoxins, sons) in transit more than 100 feet from the spores, scents or by-products produced or re- described premises. Property must be in or leased by fungi. on a motor vehicle you own, lease or oper- 2. "Specified causes of loss" means the following: ate while between points in the coverage fire; lightning; explosion; windstorm or hail; territory. smoke; aircraft or vehicles; riot or civil commo- b. Loss or damage must be caused by or tion; vandalism; leakage from fire-extinguishing result from one of the following causes of equipment; sinkhole collapse; volcanic action; loss: falling objects; weight of snow, ice or sleet; wa- (1) Fire, lightning, explosion, windstorm or ter damage. hail, riot or civil commotion, or vandal- a. Sinkhole collapse means the sudden sink- ism. ing or collapse of land into underground (2) Vehicle collision, upset or overturn. empty spaces created by the action of wa- Collision means accidental contact of ter on limestone or dolomite. This cause of your vehicle with another vehicle or ob- loss does not include: ject. It does not mean your vehicle's (1) The cost of filling sinkholes; or contact with the roadbed. (2) Sinking or collapse of land into man- (3) Theft of an entire bale, case or package made underground cavities. by forced entry into a securely locked body or compartment of the vehicle. There must be visible marks of the forced entry. c. The most we will pay for loss or damage under this Extension is $5,000. CP 10 30 06 07 © ISO Properties, Inc., 2007 Page 9 of 10 ❑ b. Falling objects does not include loss or c. Water damage means accidental discharge damage to: or leakage of water or steam as the direct (1) Personal property in the open; or result of the breaking apart or cracking of a plumbing, heating, air conditioning or other (2) The interior of a building or structure, or system or appliance (other than a sump property inside a building or structure, system including its related equipment and unless the roof or an outside wall of the parts), that is located on the described building or structure is first damaged by premises and contains water or steam. a falling object. Page 10 of 10 © ISO Properties, Inc., 2007 CP 10 30 06 07 ❑ COMMERCIAL CRIME COVERAGE FORM DECLARATIONS Effective Date: 01/01/12 Policy No. H633-000095-06 COVERAGE, LIMITS OF INSURANCE AND DEDUCTIBLE Coverage Form(s)Forming Part of this Coverage Part Limit of Insurance Deductible Amount X Theft,Disappearance and Destruction(in&out) $250,000 $ 1,000 Employee Dishonesty—Per Loss $ $ X Employee Dishonesty—Per Employee $25,000* $ 1,000 X Robbery and Safe Burglary $250,000 $ 1,000 Forgery and Alteration $ $ Insurance is provided only for the coverage indicated by an x and for which a specific limit is shown. FORMS AND ENDORSEMENTS (other than applicable Forms and Endorsements shown above or elsewhere in the policy) Forms and Endorsements applying to this Coverage Part and made part of this policy at time of issue: CR0027(05/06),CR2519(l 0/1 0),CR2535(08/07),CR2512(10/10) CR0027(05/06),CR2519(l 0/10).*$500,000 Employee Dishonesty for the following individuals: Town Supervisor, Deputy Supervisor, Receiver of taxes, Town Comptroller and the three members of the accounting office. A$5,000 Deductible will apply to these individuals' FPremium $included *Information omitted if shown elsewhere in the policy. **Inclusion of date optional. THESE DECLARATIONS ARE PART OF THE POLICY DECLARATIONS CONTAINING THE NAME OF THE INSURED AND THE POLICY PERIOD. NIF 1 106 03/99 Includes copyrighted material of Insurance Services Office,Inc.,with its permission. Copyright,Insurance Services Office,Inc.,1994 POLICY NUMBER:1-1633-000095-06 CRIME AND FIDELITY CR 25121010 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. INCLUDE TREASURERS OR TAX COLLECTORS AS EMPLOYEES This endorsement modifies insurance provided under the following: GOVERNMENT CRIME COVERAGE FORM GOVERNMENT CRIME POLICY GOVERNMENT EMPLOYEE THEFT AND FORGERY POLICY SCHEDULE Treasurers Or Tax Collectors Treasurers or Tax Collectors of Town of Southold. Information required to complete this Schedule, if not shown above, will be shown in the Declarations. 1. The definition of"employee" is amended to include 2. Exclusion D.2.d. Treasurers Or Tax Collectors is your treasurers or tax collectors shown in the deleted. Schedule. CR 26 12 10 10 © Insurance Services Office, Inc., 2009 Page 1 of 1 ❑ POLICY NUMBER: H633-000095-06 CRIME AND FIDELITY CR 25350807 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADD SCHEDULE EXCESS LIMIT OF INSURANCE FOR SPECIFIED EMPLOYEES OR POSITIONS FOR EMPLOYEE THEFT ONLY This endorsement modifies insurance provided under the following: COMMERCIAL CRIME COVERAGE FORM COMMERCIAL CRIME POLICY EMPLOYEE THEFT AND FORGERY POLICY GOVERNMENT CRIME COVERAGE FORM GOVERNMENT CRIME POLICY and applies to the Employee Theft Insuring Agreement: SCHEDULE Name Schedule Coverage Item Excess Limit Of Insurance No. Names Of Covered "Employees" Each "Employee" Position Schedule Coverage Excess Limit Of Item Titles Of Location Of No. Of"Employees" Insurance No. Covered Positions Covered Positions Each Position Each "Employee Town Supervisor& Deputy $500,000 Limit& Supervisor $5,000 Deductible Receiver of Taxes $500,000 Limit& $5,000 Deductible Town Comptroller $500,000 Limit& $5,000 Deductible Accounting Office Staff (3) $500,000 Limit& $5,000 Deductible Information required to complete this Schedule, if not shown above, will be shown in the Declarations. CR 26 36 08 07 © ISO Properties, Inc., 2006 Page 1 of 2 ❑ 1. The Excess Limit of Insurance shown in the 3. The Excess Limit of Insurance applies only to loss Schedule applies to each "employee" who is caused by an identified "employee". named or who holds a position shown in the 4. If the Excess Limit of Insurance is scheduled on a Schedule opposite that limit. position basis, the most we will pay for an "em- 2. The Excess Limit of Insurance applies only to that ployee" holding more than one position is the larg- part of any covered loss that exceeds the Limit of est Excess Limit of Insurance in effect and appli- Insurance shown in the Declarations for the Em- cable to any one of those positions at the time of ployee Theft Insuring Agreement plus any appli- loss. cable Deductible Amount. 5. The Excess Limit of Insurance applies only to loss you sustain through "theft" by an "employee". Page 2 of 2 © ISO Properties, Inc., 2006 CR 25 35 08 07 ❑ POLICY NUMBER: CRIME AND FIDELITY CR 25191010 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADD FAITHFUL PERFORMANCE OF DUTY COVERAGE FOR GOVERNMENT EMPLOYEES This endorsement modifies insurance provided under the following: GOVERNMENT CRIME COVERAGE FORM GOVERNMENT CRIME POLICY GOVERNMENT EMPLOYEE THEFT AND FORGERY POLICY and applies to the Insuring Agreements designated below: SCHEDULE Insuring Agreement Limit Of Insurance Employee Theft— Per Loss Coverage $ Employee Theft— Per Employee Coverage $ Information required to complete this Schedule, if not shown above, will be shown in the Declarations. 1. The following is added to the Employee Theft 3. The Indemnification Condition is replaced by the Insuring Agreement designated above: following: We will pay for loss or damage to "money", We will indemnify any of your officials who are re- "securities" and "other property" resulting directly quired by law to give bonds for the faithful perfor- from the failure of any "employee" to faithfully per- mance of their duties against loss through the fail- form his or her duties as prescribed by law, when ure of any "employee" under the supervision of such failure has as its direct and immediate result that official to faithfully perform his or her duties as a loss of your covered property. The most we will prescribed by law, when such failure has as its di- pay for loss arising out of any one "occurrence" is rect and immediate result a loss of your covered the Limit Of Insurance shown in the Schedule. property. That Limit is part of, not in addition to, the Limit Of 4. Paragraph (1) of the Termination As To Any Insurance shown in the Declarations. Employee Condition is replaced by the following: 2. The following exclusions are added to Section D.2. (1) As soon as: Exclusions: a. Loss resulting from the failure of any entity (a) You; or acting as a depository for your property or (b) Any official or employee authorized to man- property for which you are responsible. age, govern or control your"employees" not b. Damages for which you are legally liable as a in collusion with the "employee-, result of: learn of any act committed by the "employee" (1) The deprivation or violation of the civil rights whether before or after becoming employed by you which would constitute a loss covered un- of any person by an "employee"; or der the terms of the Employee Theft Insuring (2) The tortious conduct of an "employee", Agreement, as amended by this endorsement. except the conversion of property of other 5. The coverage provided by this endorsement does parties held by you in any capacity. not apply to any employee benefit plan(s) covered under the Employee Theft Insuring Agreement shown in the Schedule. CR 2619 10 10 © Insurance Services Office, Inc., 2009 Page 1 of 1 13 CRIME AND FIDELITY CR 00 27 05 06 GOVERNMENT CRIME POLICY (LOSS SUSTAINED FORM) Various provisions in this policy restrict coverage. (2) Made or drawn by one acting as your Read the entire policy carefully to determine rights, agent; duties and what is or is not covered. or that are purported to have been so made Throughout this policy the words "you" and "your" or drawn. refer to the Named Insured shown in the Declarations. For the purposes of this Insuring Agree- The words "we", "us" and "our" refer to the Company ment, a substitute check as defined in the providing this insurance. Check Clearing for the 21st Century Act Other words and phrases that appear in quotation shall be treated the same as the original it marks have special meaning. Refer to Section F. replaced. Definitions. b. If you are sued for refusing to pay any in- A. Insuring Agreements strument covered in Paragraph 3.a., on the Coverage is provided under the following Insuring basis that it has been forged or altered, and Agreements for which a Limit of Insurance is you have our written consent to defend shown in the Declarations and applies to loss that against the suit, we will pay for any reason- you sustain resulting directly from an "occurrence" able legal expenses that you incur and pay taking place during the Policy Period shown in the in that defense. The amount that we will Declarations, except as provided in Condition pay is in addition to the Limit of Insurance E.1.n. or E.1.o., which is "discovered" by you dur- applicable to this Insuring Agreement. ing the Policy Period shown in the Declarations or 4. Inside The Premises—Theft Of Money And during the period of time provided in the Extended Securities Period To Discover Loss Condition E.1.i.: a. We will pay for loss of"money" and "securi- 1. Employee Theft— Per Loss Coverage ties" inside the "premises" or "banking We will pay for loss of or damage to "money", premises": "securities" and "other property" resulting di- (1) Resulting directly from "theft" committed rectly from "theft" committed by an "employee", by a person present inside such "prem- whether identified or not, acting alone or in col- ises" or"banking premises"; or lusion with other persons. (2) Resulting directly from disappearance or For the purposes of this Insuring Agreement, destruction. "theft" shall also include forgery. b. We will pay for loss from damage to the 2. Employee Theft— Per Employee Coverage "premises" or its exterior resulting directly We will a for loss of or damage to "money", from an actual or attempted "theft" of"mon- "securities" g y ' ey" and "securities", if you are the owner of "securities" and other property" resulting di- rectly from "theft" committed by each "employ- the "premises" or are liable for damage to it. ee", whether identified or not, acting alone or in c. We will pay for loss of or damage to a collusion with other persons. locked safe, vault, cash register, cash box For the purposes of this Insuring Agreement or cash drawer located inside the "premis- "theft" shall also include forgery. es" resulting directly from an actual or at- tempted 'theft" of or unlawful entry into 3. Forgery Or Alteration those containers. a. We will pay for loss resulting directly from 5. Inside The Premises—Robbery Or Safe "forgery" or alteration of checks, drafts, Burglary Of Other Property promissory notes, or similar written promis- es, orders or directions to pay a sum certain a. We will pay for loss of or damage to "other in "money"that are: property": (1) Made or drawn by or drawn upon you; (1) Inside the "premises" resulting directly or from an actual or attempted "robbery" of a "custodian"; or CR 00 27 05 06 © ISO Properties, Inc., 2005 Page 1 of 14 13 (2) Inside the "premises" in a safe or vault If any loss is covered under more than one Insur- resulting directly from an actual or at- ing Agreement or Coverage, the most we will pay tempted "safe burglary". for such loss shall not exceed the largest Limit of b. We will pay for loss from damage to the Insurance available under any one of those Insur- "premises" or its exterior resulting directly ing Agreements or Coverages. from an actual or attempted "robbery" or C. Deductible "safe burglary" of"other property", if you are We will not pay for loss resulting directly from an the owner of the "premises' or are liable for "occurrence" unless the amount of loss exceeds damage to it. the Deductible Amount shown in the Declarations. c. We will pay for loss of or damage to a We will then pay the amount of loss in excess of locked safe or vault located inside the the Deductible Amount, up to the Limit of Insur- "premises" resulting directly from an actual ance. or attempted "robbery" or"safe burglary". D. Exclusions 6. Outside The Premises 1. This policy does not cover: a. We will pay for loss of"money" and "securi- a. Acts Committed By You ties" outside the "premises" in the care and custody of a "messenger" or an armored Loss resulting from "theft" or any other dis- motor vehicle company resulting directly honest act committed by you, whether act- from "theft", disappearance or destruction. ing alone or in collusion with other persons. b. We will pay for loss of or damage to 'other b. Acts Of Employees Learned Of By You property" outside the "premises" in the care Prior To The Policy Period and custody of a "messenger" or an ar- Loss caused by an "employee" if the "em- mored motor vehicle company resulting di- ployee" had also committed "theft" or any rectly from an actual or attempted "rob- other dishonest act prior to the effective bery". date of this policy and you or any of your of- 7. Computer Fraud ficials, not in collusion with the "employee", We will pay for loss of or damage to "money", learned of that "theft" or dishonest act prior "securities" and 'other property" resulting di- to the Policy Period shown in the Declara- rectly from the use of any computer to fraudu- tions. Iently cause a transfer of that property from in- c. Acts Of Officials, Employees Or side the "premises" or"banking premises": Representatives a. To a person (other than a "messenger") Loss resulting from "theft" or any other dis- outside those "premises", or honest act committed by any of your offi- cials, "employees" or authorized represent- b. To a place outside those premises . atives: 8. Funds Transfer Fraud (1) Whether acting alone or in collusion with We will pay for loss of"funds" resulting directly other persons; or from a "fraudulent instruction" directing a finan- (2) While performing services for you or cial institution to transfer, pay or deliver "funds" otherwise; from your"transfer account". 9. Money Orders And Counterfeit Money except when covered under Insuring Agreement A.1. or A.2. We will pay for loss resulting directly from your d. Confidential Information having accepted in good faith, in exchange for merchandise, "money" or services: Loss resulting from: a. Money orders issued by any post office, (1) The unauthorized disclosure of your express company or bank that are not paid confidential information including, but upon presentation, or not limited to, patents, trade secrets, b. "Counterfeit money" that is acquired during processing methods or customer lists; or the regular course of business. B. Limit Of Insurance The most we will pay for all loss resulting directly from an "occurrence" is the applicable Limit of In- surance shown in the Declarations. Page 2 of 14 © ISO Properties, Inc., 2005 CR 00 27 06 06 13 (2) The unauthorized use or disclosure of j. War And Military Action confidential information of another per- Loss or damage resulting from: son or entity which is held by you includ- ing, but not limited to, financial infor- (1) War, including undeclared or civil war; mation, personal information, credit card (2) Warlike action by a military force, includ- information or similar non-public infor- ing action in hindering or defending mation. against an actual or expected attack, by e. Governmental Action any government, sovereign or other au- thority using military personnel or other Loss resulting from seizure or destruction of agents; or property by order of governmental authority. (3) Insurrection, rebellion, revolution, f. Indirect Loss usurped power, or action taken by gov- Loss that is an indirect result of an 'occur- ernmental authority in hindering or de- rence" covered by this policy including, but fending against any of these. not limited to, loss resulting from: 2. Insuring Agreements A.1. and A.2. do not (1) Your inability to realize income that you cover: would have realized had there been no a. Bonded Employees loss of or damage to "money", "securi- ties" or"other property". Loss caused by any"employee" required by (2) Payment of damages of any type for law to be individually bonded. which you are legally liable. But, we will b. Inventory Shortages pay compensatory damages arising di- Loss, or that part of any loss, the proof of rectly from a loss covered under this which as to its existence or amount is de- policy. pendent upon: (3) Payment of costs, fees or other expens- (1) An inventory computation; or es you incur in establishing either the (2) A profit and loss computation. existence or the amount of loss under this policy. However, where you establish wholly apart g. Legal Fees, Costs And Expenses from such computations that you have sus- tained a loss, then you may offer your in- Fees, costs and expenses incurred by you ventory records and actual physical count which are related to any legal action, except of inventory in support of the amount of loss when covered under Insuring Agreement claimed. A.3. c. Trading h. Nuclear Hazard Loss resulting from trading, whether in your Loss or damage resulting from nuclear re- name or in a genuine or fictitious account. action or radiation, or radioactive contami- d. Treasurers Or Tax Collectors nation, however caused. i. Pollution Loss caused by any treasurer or tax collec- tor by whatever name known. Loss or damage caused by or resulting 3. Insuring Agreements A.4., A.S. and A.6. do not from pollution. Pollution means the dis- charge, dispersal, seepage, migration, re- cover: lease or escape of any solid, liquid, gase- a. Accounting Or Arithmetical Errors Or ous or thermal irritant or contaminant, Omissions including smoke, vapor, soot, fumes, acids, Loss resulting from accounting or arithmeti- alkalis, chemicals and waste. Waste in- cal errors or omissions. cludes materials to be recycled, recondi- b. Exchanges Or Purchases tioned or reclaimed. Loss resulting from the giving or surrender- ing of property in any exchange or pur- chase. CR 00 27 05 06 © ISO Properties, Inc., 2005 Page 3 of 14 13 c. Fire (2) But, this Exclusion does not apply under Loss or damage resulting from fire, howev- Insuring Agreement A.6. to loss of er caused except: "money", "securities" or "other property" while outside the "premises" in the care (1) Loss of or damage to "money" and and custody of a "messenger" if you: "securities"; and (a) Had no knowledge of any threat at (2) Loss from damage to a safe or vault. the time the conveyance began; or d. Money Operated Devices (b) Had knowledge of a threat at the Loss of property contained in any money time the conveyance began, but the operated device unless the amount of loss was not related to the threat. "money" deposited in it is recorded by a g. Vandalism continuous recording instrument in the de- vice. Loss from damage to the "premises" or its exterior, or to any safe, vault, cash register, e. Motor Vehicles Or Equipment And cash box, cash drawer or "other property" Accessories by vandalism or malicious mischief. Loss of or damage to motor vehicles, trail- h. Voluntary Parting Of Title To Or ers or semi-trailers or equipment and ac- Possession Of Property cessories attached to them. Loss resulting from your, or anyone acting f. Transfer Or Surrender Of Property on your express or implied authority, being (1) Loss of or damage to property after it induced by any dishonest act to voluntarily has been transferred or surrendered to part with title to or possession of any prop- a person or place outside the "premises" erty. or"banking premises": 4. Insuring Agreement A.7. does not cover: (a) On the basis of unauthorized instruc- a. Credit Card Transactions tions; Loss resulting from the use or purported (b) As a result of a threat to do bodily use of credit, debit, charge, access, con- harm to any person; venience, identification, stored-value or (c) As a result of a threat to do damage other cards or the information contained on to any property; such cards. (d) As a result of a threat to introduce a b. Funds Transfer Fraud denial of service attack into your Loss resulting from a "fraudulent instruc- computer system; tion" directing a financial institution to trans- (e) As a result of a threat to introduce a fer, pay or deliver "funds" from your "trans- virus or other malicious instruction fer account". into your computer system which is c. Inventory Shortages designed to damage, destroy or cor- rupt data or computer programs Loss, or that part of any loss, the proof stored within your computer system; which as to its existence or amount is de- pendent upon: (f) As a result of a threat to contami- nate, pollute or render substandard (1) An inventory computation; or your products or goods; or (2) A profit and loss computation. (g) As a result of a threat to dissemi- 5. Insuring Agreement A.8. does not cover: nate, divulge or utilize: COMPUTER FRAUD (i) Your confidential information; or Loss resulting from the use of any computer to (ii) Weaknesses in the source code fraudulently cause a transfer of "money", "se- within your computer system. curities" or"other property". Page 4 of 14 © ISO Properties, Inc., 2005 CR 00 27 06 06 13 E. Conditions d. Concealment, Misrepresentation Or 1. Conditions Applicable To All Insuring Fraud Agreements This policy is void in any case of fraud by a. Additional Premises Or Employees you as it relates to this policy at any time. It is also void if you or any other Insured, at If, while this policy is in force, you establish any time, intentionally conceal or misrepre- any additional "premises" or hire additional sent a material fact concerning: "employees", such "premises" and "em- ployees" shall automatically be covered un- (1) This policy; der this policy. Notice to us of an increase (2) The property covered under this policy; in the number of"premises" or "employees" (3) Your interest in the property covered need not be given and no additional premi- under this policy; or um need be paid for the remainder of the Policy Period shown in the Declarations. (4) A claim under this policy. b. Cancellation Of Policy e. Cooperation (1) The first Named Insured shown in the You must cooperate with us in all matters Declarations may cancel this policy by pertaining to this policy as stated in its mailing or delivering to us advance writ- terms and conditions. ten notice of cancellation. f. Duties In The Event Of Loss (2) We may cancel this policy by mailing or After you "discover" a loss or a situation delivering to the first Named Insured that may result in loss of or damage to written notice of cancellation at least: "money", "securities" or "other property" (a) 10 days before the effective date of you must: cancellation if we cancel for non- (1) Notify us as soon as possible. If you payment of premium; or have reason to believe that any loss (b) 30 days before the effective date of (except for loss covered under Insuring cancellation if we cancel for any oth- Agreement A.1., A.2. or A.3.) involves a er reason. violation of law, you must also notify the (3) We will mail or deliver our notice to the local law enforcement authorities. first Named Insured's last mailing ad- (2) Submit to examination under oath at our dress known to us. request and give us a signed statement (4) Notice of cancellation will state the ef- of your answers. fective date of cancellation. The policy (3) Produce for our examination all perti- period will end on that date. nent records. (5) If this policy is cancelled, we will send (4) Give us a detailed, sworn proof of loss the first Named Insured any premium re- within 120 days. fund due. If we cancel, the refund will be (5) Cooperate with us in the investigation pro rata. If the first Named Insured can- and settlement of any claim. cels, the refund may be less than pro ra- g. Employee Benefit Plans ta. The cancellation will be effective even if we have not made or offered a (1) The employee benefit plans shown in refund. the Declarations (hereafter referred to (6) If notice is mailed, proof of mailing will as Plan) are included as Insureds under be sufficient proof of notice. Insuring Agreement A.1. or A.2. c. Changes (2) Any payment we make for loss sus- tained by any Plan will be made to the This policy contains all the agreements be- Plan sustaining the loss. tween you and us concerning the insurance (3) The Deductible Amount applicable to afforded. The first Named Insured shown in Insuring Agreement A.1. or A.2. does the Declarations is authorized to make not apply to loss sustained by any Plan. changes in the terms of this policy with our consent. This policy's terms can be amend- ed or waived only by endorsement issued by us and made a part of this policy. CR 00 27 05 06 © ISO Properties, Inc., 2005 Page 5 of 14 13 h. Examination Of Your Books And (2) If any Insured or official of that Insured Records has knowledge of any information rele- We may examine and audit your books and vant to this policy, that knowledge is records as they relate to this policy at any considered knowledge of every Insured. time during the Policy Period shown in the (3) An "employee" of any Insured is consid- Declarations and up to 3 years afterward. ered to be an "employee" of every In- i. Extended Period To Discover Loss sured. We will pay for loss that you sustained prior (4) If this policy or any of its coverages is to the effective date of cancellation of this cancelled as to any Insured, loss sus- policy, which is "discovered" by you no later tained by that Insured is covered only if than 1 year from the date of that cancella- it is "discovered" by you no later than 1 tion. year from the date of that cancellation. However, this extended period to "discover" However, this extended period to "dis- loss terminates immediately upon the effec- cover" loss terminates immediately upon tive date of any other insurance obtained by the effective date of any other insurance you, whether from us or another insurer, obtained by that Insured, whether from replacing in whole or in part the coverage us or another insurer, replacing in whole afforded under this policy, whether or not or in part the coverage afforded under such other insurance provides coverage for this policy, whether or not such other in- loss sustained prior to its effective date. surance provides coverage for loss sus- Inspections And Surreys tained prior to its effective date. j. (6) We will not pay more for loss sustained (1) We have the right to: by more than one Insured than the (a) Make inspections and surveys at any amount we would pay if all such loss time; had been sustained by one Insured. (b) Give you reports on the conditions (6) Payment by us to the first Named In- we find; and sured for loss sustained by any Insured, (c) Recommend changes. other than an employee benefit plan, shall fully release us on account of such (2) We are not obligated to make any in- loss. spections, surveys, reports or recom- I. Legal Action Against Us mendations and any such actions we do undertake relate only to insurability and You may not bring any legal action against the premiums to be charged. We do not us involving loss: make safety inspections. We do not un- (1) Unless you have complied with all the dertake to perform the duty of any per- terms of this policy; son or organization to provide for the health or safety of workers or the public. (2) Until 90 days after you have filed proof And we do not warrant that conditions: of loss with us; and (a) Are safe or healthful, or (3) Unless brought within 2 years from the date you "discovered"the loss. (b) Comply with laws, regulations, codes or standards. If any limitation in this Condition is prohibit- ed by law, such limitation is amended so as (3) Paragraphs j.(1) and j.(2) apply not only to equal the minimum period of limitation to us, but also to any rating, advisory, provided by such law. rate service or similar organization which makes insurance inspections m. Liberalization surveys, reports or recommendations. If we adopt any revision that would broaden k. Joint Insured the coverage under this policy without addi- tional premium within 45 days prior to or (1) If more than one Insured is named in the during the Policy Period shown in the Dec- Declarations, the first Named Insured larations, the broadened coverage will im- will act for itself and for every other In- mediately apply to this policy. sured for all purposes of this policy. If the first Named Insured ceases to be covered, then the next Named Insured will become the first Named Insured. Page 6 of 14 © ISO Properties, Inc., 2005 CR 00 27 06 06 13 n. Loss Sustained During Prior Insurance (b) We will apply the applicable Deduct- Issued By Us Or Any Affiliate ible Amount shown in the Declara- (1) Loss Sustained Partly During This tions to the amount of loss sustained Policy And Partly During Prior under this policy. If no loss was sus- Insurance tained under this policy, we will apply the Deductible Amount shown in the If you "discover" loss during the Policy Declarations to the amount of loss Period shown in the Declarations, result- sustained under the most recent pri- ing directly from an 'occurrence" taking or insurance. place: If the Deductible Amount is larger (a) Partly during the Policy Period than the amount of loss sustained shown in the Declarations; and under this policy, or the most recent (b) Partly during the Policy Period(s) of prior insurance, we will apply the re- any prior cancelled insurance that maining Deductible Amount to the we or any affiliate issued to you or remaining amount of loss sustained any predecessor in interest; during the prior insurance. and this policy became effective at the We will not apply any other Deducti- time of cancellation of the prior insur- ble Amount that may have been ap- ance, we will first settle the amount of plicable to the loss. loss that you sustained during this Policy (4) The following examples demonstrate Period. We will then settle the remaining how we will settle losses subject to this amount of loss that you sustained during Condition E.1.n.: the Policy Period(s) of the prior insur- EXAMPLE NO. 1: ance. (2) Loss Sustained Entirely During Prior The insured sustained a covered loss of Insurance $10,000 resulting directly from an "oc- currence" taking place during the terms If you "discover" loss during the Policy of Policy A and Policy B. Period shown in the Declarations, result- POLICY A ing directly from an 'occurrence" taking place entirely during the Policy Period(s) The current policy. Written at a Limit of of any prior cancelled insurance that we Insurance of $50,000 and a Deductible or any affiliate issued to you or any pre- Amount of$5,000. decessor in interest, we will pay for the POLICY B loss, provided: (a) This policy became effective at the Issued prior to Policy A. Written at a Limit of Insurance of $50,000 and a De- time of cancellation of the prior in- ductible Amount of$5,000. surance; and (b) The loss would have been covered The amount of loss sustained under Pol- icy A is $2,500 and under Policy B is under this policy had it been in effect $7 500 at the time of the 'occurrence". We will first settle the amount of loss The highest single Limit of Insuranceapplicable to this entire loss is $50,000 that you sustained during the most re- written under Policy A. The Policy A cent prior insurance. We will then settle Deductible Amount of $5,000 applies. any remaining amount of loss that you The loss is settled as follows: sustained during the Policy Period(s) of any other prior insurance. 1. The amount of loss sustained under (3) In settling loss subject to this Condition: Policy A ($2,500) is settled first. Theamount we will pay is nil ($0.00) be- (a) The most we will pay for the entire cause the amount of loss is less than loss is the highest single Limit of In- the Deductible Amount (i.e., $2,500 surance applicable during the period loss - $5,000 deductible = $0.00). of loss, whether such limit was writ- ten under this policy or was written under the prior insurance issued by us. CR 00 27 05 06 © ISO Properties, Inc., 2005 Page 7 of 14 13 2. The remaining amount of loss sus- POLICY A tained under Policy B ($7,500) is set- The current policy. Written at a Limit of tled next. The amount recoverable is Insurance of $1,000,000 and a Deducti- $5,000 after the remaining Deducti- ble Amount of$100,000. ble Amount from Policy A of $2,500 is applied to the loss (i.e., $7,500 POLICY B loss - $2,500 deductible = $5,000). Issued prior to Policy A. Written at a The most we will pay for this loss is Limit of Insurance of $750,000 and a $5,000. Deductible Amount of$75,000. EXAMPLE NO. 2: POLICY C The insured sustained a covered loss of Issued prior to Policy B. Written at a $250,000 resulting directly from an "oc_ Limit of Insurance of $500,000 and a currence" taking place during the terms Deductible Amount of$50,000. of Policy A and Policy B. POLICY D POLICY A Issued prior to Policy C. Written at a The current policy. Written at a Limit of Limit of Insurance of $500,000 and a Insurance of $125,000 and a Deductible Deductible Amount of$50,000. Amount of$10,000. The amount of loss sustained under Pol- POLICY B icy A is $350,000, under Policy B is Issued prior to Policy A. Written at a $250,000, under Policy C is $600,000 Limit of Insurance of $150,000 and a and under Policy D is $800,000. Deductible Amount of$25,000. The highest single Limit of Insurance The amount of loss sustained under Pol- applicable to this entire loss is icy A is $175,000 and under Policy B is $1,000,000 written under Policy A. The $75,000. Policy A Deductible Amount of$100,000 applies. The loss is settled as follows: The highest single Limit of Insurance 1. The amount of loss sustained under applicable to this entire loss is $150,000 Policy A ($350,000) is settled first. written under Policy B. The Policy A The amount we will pay is $250,000 Deductible Amount of $10,000 applies. (i.e., $350,000 loss - $100,000 de- The loss is settled as follows: ductible = $250,000). 1. The amount of loss sustained under 2. The amount of loss sustained under Policy A ($175,000) is settled first. Policy B ($250,000) is settled next. The amount we will pay is the Policy The amount we will pay is $250,000 A Limit of $125,000 because (no deductible is applied). $175,000 loss - $10,000 deductible = $165,000 which is greater than the 3. The amount of loss sustained under $125,000 policy limit. Policy C ($600,000) is settled next. 2. The remaining amount of loss sus- The amount we will pay is $500,000, tained under Policy B ($75,000) is the policy limit (no deductible is ap- settled next. The amount we will pay plied). is $25,000 (i.e., $150,000 Policy B 4. We will not make any further pay- limit - $125,000 paid under Policy A ment under Policy D as the maxi- _ $25,000). mum amount payable under the The most we will pay for this loss is highest single Limit of Insurance ap- $150,000. plying to the loss of $1,000,000 un- der Policy A has been satisfied. EXAMPLE NO. 3: The most we will pay for this loss is The insured sustained a covered loss of $1,000,000. $2,000,000 resulting directly from an "occurrence" taking place during the terms of Policies A, B, C and D. Page 8 of 14 © ISO Properties, Inc., 2005 CR 00 27 06 06 13 o. Loss Sustained During Prior Insurance p. Other Insurance Not Issued By Us Or Any Affiliate If other valid and collectible insurance is (1) If you "discover" loss during the Policy available to you for loss covered under this Period shown in the Declarations, result- policy, our obligations are limited as follows: ing directly from an 'occurrence" taking (1) Primary Insurance place during the Policy Period of any prior cancelled insurance that was is- When this policy is written as primary insur- sued to you or a predecessor in interest ance, and: by another company, and the period of (a) You have other insurance subject to time to discover loss under that insur- the same terms and conditions as ance had expired, we will pay for the this policy, we will pay our share of loss under this policy, provided: the covered loss. Our share is the (a) This policy became effective at the proportion that the applicable Limit of time of cancellation of the prior in- Insurance shown in the Declarations surance; and bears to the total limit of all insur- (b) The loss would have been covered ance covering the same loss. under this policy had it been in effect (b) You have other insurance covering at the time of the "occurrence". the same loss other than that de- (2) In settling loss subject to this Condition: scribed in Paragraph (1)(a), we will only pay for the amount of loss that (a) The most we will pay for the entire exceeds: loss is the lesser of the Limits of In- (i) The Limit of Insurance and De- surance applicable during the period ductible Amount of that other in- of loss, whether such limit was writ- surance, whether you can collect ten under this policy or was written on it or not; or under the prior cancelled insurance. (b) We will apply the applicable Deduct- (ii) The Deductible Amount shown in ible Amount shown in the Declara- tions to the amount of loss sustained whichever is greater. Our payment for under the prior cancelled insurance. loss is subject to the terms and condi- (3) The insurance provided under this Con- tions of this policy. dition is subject to the following: (2) Excess Insurance (a) If loss covered under this Condition (a) When this policy is written excess is also partially covered under Condi- over other insurance, we will only tion Elm, the amount recoverable pay for the amount of loss that ex- under this Condition is part of, not in ceeds the Limit of Insurance and addition to, the amount recoverable Deductible Amount of that other in- under Condition Elm.m. surance, whether you can collect on (b) For loss covered under this Condi- it or not. Our payment for loss is sub- ject to the terms and conditions of tion that is not subject to Paragraph this policy. (3)(a), the amount recoverable under this Condition is part of, not in addi- (b) However, if loss covered under this tion to, the Limit of Insurance appli- policy is subject to a Deductible, we cable to the loss covered under this will reduce the Deductible Amount policy and is limited to the lesser of shown in the Declarations by the the amount recoverable under: sum total of all such other insurance (i) This policy as of its effective date; plus any Deductible Amount applica- ble to that other insurance. or (ii) The prior cancelled insurance q• Ownership Of Property; Interests had it remained in effect. Covered The property covered under this policy is limited to property: (1) That you own or lease; or (2) That you hold for others whether or not you are legally liable for the loss of such property. CR 00 27 05 06 © ISO Properties, Inc., 2005 Page 9 of 14 13 However, this policy is for your benefit only. w. Transfer Of Your Rights Of Recovery It provides no rights or benefits to any other Against Others To Us person or organization. Any claim for loss You must transfer to us all your rights of re- that is covered under this policy must be covery against any person or organization presented by you. for any loss you sustained and for which we r. Premiums have paid or settled. You must also do eve- The first Named Insured shown in the Dec- rything necessary to secure those rights larations: and do nothing after loss to impair them. (1) Is responsible for the payment of all x. Valuation—Settlement premiums; and (1) The value of any loss for purposes of (2) Will be the payee for any return premi- coverage under this policy shall be de- ums we pay. termined as follows: s. Records (a) Loss of "money" but only up to and You must keep records of all property cov- including its face value. ered under this policy so we can verify the (b) Loss of "securities" but only up to amount of any loss. and including their value at the close of business on the day the loss was t. Recoveries "discovered". We may, at our option: (1) Any recoveries, whether effected before (i) Pay the market value of such or after any payment under this policy, "securities" or replace them in whether made by us or you, shall be kind, in which event you must as- applied net of the expense of such re- sign to us all your rights, title and covery: interest in and to those "securi- (a) First, to you in satisfaction of your ties"; or covered loss in excess of the amount (ii) Pay the cost of any Lost Securi- paid under this policy; ties Bond required in connection (b) Second, to us in satisfaction of with issuing duplicates of the "se- amounts paid in settlement of your curities". However, we will be Iia- claim; ble only for the payment of so (c) Third, to you in satisfaction of any much of the cost of the bond as Deductible Amount; and would be charged for a bond hav- ing a penalty not exceeding the (d) Fourth, to you in satisfaction of any lesser of the: loss not covered under this policy. i. Market value of the "securi- (2) Recoveries do not include any recovery: ties" at the close of business (a) From insurance, suretyship, reinsur- on the day the loss was "dis- ance, security or indemnity taken for covered", or our benefit; or ii. The Limit of Insurance appli- (b) Of original "securities" after dupli- cable to the securities. cates of them have been issued. (c) Loss of or damage to "other proper- u. Territory ty" or loss from damage to the This policy covers loss that you sustain re- "premises" or its exterior for the re- sulting directly from an "occurrence" taking placement cost of the property with- place within the United States of America out deduction for depreciation. How- (including its territories and possessions) ever, we will not pay more than the and Puerto Rico. least of the following: v. Transfer Of Your Rights And Duties (i) The cost to replace the lost or Under This Policy damaged property with property of comparable material and quali- Your rights and duties under this policy may ty and used for the same pur- not be transferred without our written con- pose; sent. Page 10 of 14 © ISO Properties, Inc., 2005 CR 00 27 06 06 13 (ii) The amount you actually spend We will mail or deliver our notice to the that is necessary to repair or re- first Named Insured's last mailing ad- place the lost or damaged prop- dress known to us. If notice is mailed, erty; or proof of mailing will be sufficient proof of (iii) The Limit of Insurance applicable notice. to the lost or damaged property. c. Territory With regard to Paragraphs x.(1)(c)(i) We will pay for loss caused by any "em- through x.(1)(c)(iii), we will not pay ployee" while temporarily outside the territo- on a replacement cost basis for any ry specified in the Territory Condition EA.u. loss or damage: for a period of not more than 90 consecu- i. Until the lost or damaged tive days. property is actually repaired or 3. Conditions Applicable To Insuring replaced; and Agreement A.3. ii. Unless the repairs or re- a. Deductible Amount placement are made as soon The Deductible Amount does not apply to as reasonably possible after legal expenses paid under Insuring Agree- the loss or damage. ment A.3. If the lost or damaged property is not b. Electronic And Mechanical Signatures repaired or replaced, we will pay on an actual cash value basis. We will treat signatures that are produced (2) Any property that we pay for or replace or reproduced electronically, mechanically becomes our property. or by other means the same as handwritten signatures. 2. Conditions Applicable To Insuring c. Proof Of Loss Agreements A.1. And A.2. You must include with your proof of loss a. Indemnification any instrument involved in that loss, or, if We will indemnify any of your officials who that is not possible, an affidavit setting forth are required by law to give individual bonds the amount and cause of loss. for the faithful performance of their duties d. Territory against loss through 'theft" committed by "employees" who serve under them subject We will cover loss that you sustain resulting to the applicable Limit of Insurance. directly from an "occurrence" taking place b. Termination As To Any Employee anywhere in the world. Territory Condition EA.u. does not apply to Insuring Agree- This Insuring Agreement terminates as to ment A.3. any"employee": 4. Conditions Applicable To Insuring (1) As soon as: Agreements A.S. And A.6. (a) You; or a. Armored Motor Vehicle Companies (b) Any of your officials or employees Under Insuring Agreement A.6., we will only authorized to manage, govern or pay for the amount of loss you cannot re- control your "employees" not in col- cover: lusion with the "employee", (1) Under your contract with the armored learn of "theft" or any other dishonest motor vehicle company; and act committed by the "employee" (2) From any insurance or indemnity carried whether before or after becoming em- by, or for the benefit of customers of, the ployed by you. armored motor vehicle company. (2) On the date specified in a notice mailed b. Special Limit Of Insurance For Specified to the first Named Insured. That date will Property be at least 30 days after the date of mailing. We will only pay up to $5,000 for any one "occurrence" of loss of or damage to manu- scripts, drawings, or records of any kind, or the cost of reconstructing them or reproduc- ing any information contained in them. CR 00 27 05 06 © ISO Properties, Inc., 2005 Page 11 of 14 13 6. Conditions Applicable To Insuring (c) Who you have the right to direct and Agreement A.7. control while performing services for a. Special Limit Of Insurance For Specified you; Property (2) Any natural person who is furnished We will only pay up to $5,000 for any one temporarily to you: "occurrence" of loss of or damage to manu- (a) To substitute for a permanent "em- scripts, drawings, or records of any kind, or ployee" as defined in Paragraph the cost of reconstructing them or reproduc- a.(1), who is on leave; or ing any information contained in them. (b) To meet seasonal or short-term work b. Territory load conditions; We will cover loss that you sustain resulting while that person is subject to your di- directly from an "occurrence" taking place rection and control and performing ser- anywhere in the world. Territory Condition vices for you, excluding, however, any EA.u. does not apply to Insuring Agree- such person while having care and cus- ment A.7. tody of property outside the "premises"; F. Definitions (3) Any natural person who is leased to you 1. "Banking premises" means the interior of that under a written agreement between you portion of any building occupied by a banking and a labor leasing firm, to perform du- institution or similar safe depository. ties related to the conduct of your busi- ness but does not mean a temporary 2. "Counterfeit money" means an imitation of employee as defined in Paragraph a.(2); "money" that is intended to deceive and to be taken as genuine. (4) Any natural person who is: 3. "Custodian" means you, or any "employee" (a) A trustee, officer, employee, admin- while having care and custody of property in- istrator or manager, except an ad- side the "premises", excluding any person ministrator or manager who is an in- while acting as a "watchperson" or janitor. dependent contractor, of any 4. Discover or discovered means the time employee benefit plan; and when you first become aware of facts which (b) An official of yours while that person would cause a reasonable person to assume is engaged in handling "funds" or "other property" of any employee that a loss of a type covered by this policy has been or will be incurred, regardless of when benefit plan; the act or acts causing or contributing to such (5) Any natural person who is a former loss occurred, even though the exact amount official, "employee", or trustee retained or details of loss may not then be known. as a consultant while performing ser- "Discover" or "discovered" also means the time vices for you; or when you first receive notice of an actual or po- (6) Any natural person who is a guest stu- tential claim in which it is alleged that you are dent or intern pursuing studies or duties, liable to a third party under circumstances excluding, however, any such person which, if true, would constitute a loss under this while having care and custody of prop- policy. erty outside the "premises". 6. "Employee": b. "Employee" does not mean any agent, a. "Employee" means: independent contractor or representative of the same general character not specified in (1) Any natural person: Paragraph 6.a. (a) While in your service and for the first 6. "Forgery" means the signing of the name of 30 days immediately after termina- another person or organization with intent to tion of service, unless such termina- deceive; it does not mean a signature which tion is due to "theft" or any other dis- consists in whole or in part of one's own name honest act committed by the signed with or without authority, in any capaci- "employee"; ty, for any purpose. (b) Who you compensate directly by salary, wages or commissions; and Page 12 of 14 © ISO Properties, Inc., 2005 CR 00 27 06 06 13 7. "Fraudulent instruction" means: (3) A series of acts whether or not related; a. An electronic, telegraphic, cable, teletype, committed by each "employee" acting alone telefacsimile or telephone instruction which or in collusion with other persons, during purports to have been transmitted by you, the Policy Period shown in the Declara- but which was in fact fraudulently transmit- tions, except as provided under Condition ted by someone else without your Elm. or E.1.o. knowledge or consent; c. Under Insuring Agreement A.3.: b. A written instruction (other than those de- (1) An individual act; scribed in Insuring Agreement A.3.) issued by you, which was forged or altered by (2) The combined total of all separate acts someone other than you without your whether or not related; or knowledge or consent, or which purports to (3) A series of acts whether or not related; have been issued by you, but was in fact committed by a person acting alone or in fraudulently issued without your knowledge collusion with other persons, involving one or consent; or or more instruments, during the Policy Peri- c. An electronic, telegraphic, cable, teletype, od shown in the Declarations, except as telefacsimile, telephone or written instruc- provided under Condition Elm. or E.1.o. tion initially received by you which purports d. Under All Other Insuring Agreements: to have been transmitted by an "employee" but which was in fact fraudulently transmit- (1) An individual act or event; ted by someone else without your or the (2) The combined total of all separate acts "employee's" knowledge or consent. or events whether or not related, or 8. "Funds" means "money" and "securities". (3) A series of acts or events whether or not 9. "Messenger" means you or any "employee" related; while having care and custody of property out- committed by a person acting alone or in side the "premises". collusion with other persons, or not commit- 10. "Money" means: ted by any person, during the Policy Period a. Currency, coins and bank notes in current shown in the Declarations, except as Aro- use and having a face value; and vided under Condition Elm. or E.1.o. b. Travelers checks, register checks and 12. "Other property" means any tangible property money orders held for sale to the public. other than "money" and "securities"that has in- trinsic value. Other property does not include 11. "Occurrence" means: computer programs, electronic data or any a. Under Insuring Agreement A.1.: property specifically excluded under this policy. (1) An individual act, 13. "Premises" means the interior of that portion of (2) The combined total of all separate acts any building you occupy in conducting your business. whether or not related; or 14. "Robbery" means the unlawful taking of proper- (3) A series of acts whether or not related; ty from the care and custody of a person by committed by an "employee" acting alone one who has: or in collusion with other persons, during a. Caused or threatened to cause that person the Policy Period shown in the Declara- bodily harm; or tions, except as provided under Condition Elm. or E.1.o. b. Committed an obviously unlawful act wit- b. Under Insuring Agreement A.2.: nessed by that person. (1) An individual act; 15. "Safe burglary" means the unlawful taking of: (2) The combined total of all separate acts a. Property from within a locked safe or vault whether or not related; or by a person unlawfully entering the safe or vault as evidenced by marks of forcible en- try upon its exterior; or b. A safe or vault from inside the "premises". CR 00 27 05 06 © ISO Properties, Inc., 2005 Page 13 of 14 13 16. "Securities" means negotiable and nonnego- 18. "Transfer account" means an account main- tiable instruments or contracts representing ei- tained by you at a financial institution from ther"money" or property and includes: which you can initiate the transfer, payment or a. Tokens, tickets, revenue and other stamps delivery of"funds": (whether represented by actual stamps or a. By means of electronic, telegraphic, cable, unused value in a meter) in current use; teletype, telefacsimile or telephone instruc- and tions communicated directly through an b. Evidences of debt issued in connection with electronic funds transfer system; or credit or charge cards, which cards are not b. By means of written instructions (other than issued by you; those described in Insuring Agreement but does not include "money". A.3.) establishing the conditions under which such transfers are to be initiated by 17. 'Theft" means the unlawful taking of property to such financial institution through an elec- the deprivation of the Insured. tronic funds transfer system. 19. "Watchperson" means any person you retain specifically to have care and custody of proper- ty inside the "premises" and who has no other duties. Page 14 of 14 © ISO Properties, Inc., 2005 CR 00 27 06 06 13 COMMERCIAL INLAND MARINE COVERAGE FORM DECLARATIONS Effective Date 01/01/12 Policy H633-000095-06 Schedule of Coverages Limit of Insurance Accounts Receivable Insurance Builders and Installation Risk Insurance X Contractors Equipment Insurance $ 1,490,950 Electronic Data Processing Insurance Fine Arts Insurance Transportation Insurance X Valuable Papers Insurance $500,000 Inland Marine Common Conditions X Miscellaneous Equipment $19,200 Insurance is provided only for the coverage indicated by an x and for which a specific limit is shown. Deductible: $5,000 Self- Insured Retention: $ Forms and Endorsements: CM 0001(09-04), CM0067(03/10)NIF 1158 , NIF 1159 IL0952(03/08). Premium: $ included NIF 1104 0399 CONTRACTOR'S EQUIPMENT COVERAGE FORM DECLARATIONS H633-000095-06 LMTS OF INSURANCE: 1,490,950 COVERED PROPERTY Description of Property Limit of Insurance As per schedule on file with the company. Coverage will apply to $ 1,490,950 additions and replacements thereto. Deductible: $5,000 each occurrence LOSS PAYABLE to you and as interest may appear Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and what is not covered. Throughout this policy,the words"you" and"your"refer to the Named Insured shown in the Declarations. The words"we", "us"and"our"refer to the Company providing this insurance. Other words and phrases that appear in quotation marks have special meaning. Refer to the DEFINITIONS section of this Coverage Form A. COVERAGE We will pay for"loss"to Covered Property from any of the Covered Causes of Loss. 1. COVERED PROPERTY, as used in this Coverage Form, means contractors equipment as scheduled in this Coverage Form Declarations,which is: a. your property; and b. Similar property of others for which you may be liable. 2. PROPERTY NOT COVERED Covered Property does not include: a. Automobiles, motor trucks,tractors,trailers or other vehicles designed and principally used for highway transportation; aircraft or watercraft; NIF 1158 (07100) Page 1 of 6 b. Property while airborne; C. Property while waterborne except while in transit on a ferry; d. Property while located underground; e. Tools and clothing of your employees; f. Contraband, or property in the course of illegal transportation or trade; or g. Land or water. 3. COVERED CAUSES OF LOSS Covered Causes of Loss means RISKS OF DIRECT PHYSICAL"LOSS"to Covered Property except those causes of"loss"listed in the Exclusions. 4. COVERAGE EXTENSIONS a. Additionally Acquired Property If during the policy period you acquire additional equipment of a type already covered by this form which you buy, lease,rent or borrow, we will cover such equipment for up to 60 days but not beyond the end of the policy period. The most we will pay in a"loss"for any one item is the lesser of: (1) 25%of the total value of the Covered Property shown in this Coverage Form Declarations;or (2) $100,000 Unless an increased limit for any one item is shown in this Coverage Form Declarations. You will report such equipment to us within 60 days from the date acquired and will pay any additional premium due. If you do not report such equipment coverage will cease automatically 60 days after the date the equipment is acquired, or at the end of the policy period, whichever occurs first. b. Rental Expense Reimbursement We will reimburse your rental expenses should a covered"loss"to equipment you own make it necessary to rent replacement equipment to continue your normal operations of the work in progress. We will reimburse these rental expenses provided you do not have equivalent idle equipment you can use and you restore or replace the lost or damaged equipment as soon as possible. Our reimbursement is limited to rental expenses incurred during the period of time beginning seventy-two(72) hours after the"loss"has occurred and continuing until the equipment has been restored,replaced, or is no longer needed, whichever occurs first. The period of reimbursement will not be limited by the policy expiration date. The most we will pay is$5,000 of your rental expenses in any one policy period for one or more items of equipment unless an increased limit is shown in this Coverage Form Declarations. NIF 1158 (07100) Page 2 of 6 C. Debris Removal (1) We will pay your expenses to remove debris of Covered Property caused by or resulting from a Covered Cause of Loss that occurs during the policy period. The expenses will be paid only if they are reported to us in writing within 180 days of the earlier of: (a) The date of direct physical"loss", or (b) The end of the policy period. (2) We will pay up to$10,000 for debris removal expense in any one occurrence when the sum of the direct"loss"and debris removal expense exceeds the applicable Limit of Insurance shown in this Coverage Form Declarations. (3) This coverage extension for debris removal does not apply to costs to: (a) Extract"pollutants"from land or water; or (b) Remove, restore or replace polluted land or water. d. Pollutant cleanup and Removal (1) We will pay your expenses to extract"pollutants"from land or water if the release, discharge or dispersal of the"pollutants"is caused by or results from a Covered Cause of Loss that occurs during the policy period. The expenses will be paid only if they are reported to us in writing within 180 days of the earlier of: (a) The date of direct physical"loss", or (b) The end of the policy period. (2) The most we will pay under this Coverage Extension is$25,000 for the sum of all such expenses arising out of Covered Causes of Loss occurring during each separate 12 month period of this policy. B. EXCLUSIONS 1. We will not pay for a"loss"caused directly or indirectly by any of the following. Such"loss"is excluded regardless of any other cause or event that contributes concurrently or in any sequence to the"loss". a. Governmental Action Seizure or destruction of property by order of government authority. But we will pay for damage or destruction of Covered Property ordered by governmental authority: (1) Taken at the time of a fire to prevent its spread if the fire would be covered under this Coverage Form; or (2) That is a direct result of a Covered cause of Loss. b. Nuclear hazard (1) Any weapon employing atomic fission or fusion;or NIF 1158 (07100) Page 3 of 6 (2) Nuclear reaction or radiation, or radioactive contamination from any other cause. But we will pay for direct"loss"caused by resulting fire if the fire would be covered under this Coverage Form. C. War and Military Action (1) War, including undeclared war or civil war; (2) Warlike action by military force, including action in hindering or defending against an actual or intended attack,by any government, sovereign or other authority using military personnel or other agents; or (3) Insurrection,rebellion,revolution,usurped power or action taken by governmental authority in hindering or defending against any of these. 2. We will not pay for a"loss"caused by or resulting from any of the following: a. Delay, loss of use, loss of market or any other consequential loss. b. Dishonest acts by: (1) You,your employees or authorized representatives; (2) Anyone else with an interest in the property, or their employees or authorized representatives; or (3) Anyone else to whom the property is entrusted. This exclusion applies whether or not such persons are acting alone or in collusion with other persons or such acts occur during the hours of employment. But this exclusion does not apply to Covered Property that is entrusted to others who are carriers for hire. C. Unexplained disappearance. d. Shortage found upon taking inventory. e. The lifting of a load that exceeds the manufacturer's load chart specifications, or by any operation that stresses the machine beyond the manufacturer's suggested operational limitations. f. Artificially generated current creating a short circuit to other electrical disturbance within the Covered Property. But we will pay for direct"loss"caused by resulting fire or explosion. g. Faulty materials, improper workmanship, errors in design or specifications. h. Theft from any unattended vehicle owned,leased or operated by you unless at the time of theft its windows, doors and compartments were closed and locked and there are visible signs that the theft was the result of forced entry. 3. We will not pay for a"loss"caused by or resulting from any of the following. But if"loss"by a Covered Cause of Loss results,we will pay for that resulting"loss". a. Wear,tear,gradual deterioration, depreciation, any quality in the property that causes it to damage or destroy itself,hidden or latent defect;mechanical breakdown; corrosion or rust. b. Dryness or dampness of atmosphere, extremes or changes of temperature including freezing; insects, vermin,rodents or worms. NIF 1158 (07100) Page 4 of 6 C. Any quality in the property that causes it to damage or destroy itself. d. Mechanical or electrical breakdown or failure. C. LPMTS OF INSURANCE The most we will pay for"loss"in any one occurrence: 1. For one item of scheduled property is the Limit of Insurance for that item shown in the Declarations; 2. For more than one item of scheduled property is the total of the scheduled limits for those items up to the Limit of Insurance for all Covered Property; 3. For Coverage Extensions is the Limit of Insurance applicable to a Coverage Extension. D. DEDUCTIBLE We will not pay for"loss"in any one occurrence until the amount of adjusted"loss"exceeds the deductible shown in this Coverage Form declarations. We will then pay the amount of the adjusted"loss"in excess of the Deductible, up to the applicable Limit of Insurance. This condition does not apply to Rental reimbursement and Debris Removal. E. ADDITIONAL CONDITIONS The following conditions apply in addition to the Inland Marine Conditions and Common Policy Conditions: 1. Coverage Territory We insure Covered Property wherever located within the 50 states of The United States of America,District of Columbia and Canada. 2. Valuation The valuation condition contained in the Inland Marine Conditions is replaced by the following: The value of property will be the least of the following amounts: a. The actual cash value of that property; b. The cost of reasonably restoring that property to its condition immediately before"loss", or C. The cost of replacing that property with substantially identical property. In the event of"loss",the value of property will be determined as of the time of"loss". However, we will not deduct depreciation on the adjustment of a partial "loss"to an item when the"loss"is less than twenty percent (20%)of the actual cash value of the item. 3. Coinsurance All Covered property must be insured for at least 80%of its total values as of the time of"loss"or you will incur a penalty. The penalty is that we will pay only the proportion of any"loss"that the Limit of Insurance shown in the Inland Marine Declarations for a scheduled item bears to 80%of its actual cash value as of the time of"loss". NIF 1158 (07100) Page 5 of 6 4. Impairment Of Recovery Rights If in any act or agreement after a"loss"you impair our right to recover from others liable for the"loss",we will not pay you for that"loss". F. DEFINTIONS 1. "Loss"means accidental loss or damage. 2. "Pollutants"means any Covered Property that becomes a solid, liquid,gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled,reconditioned or reclaimed. NIF 1158 (07100) Page 6 of 6 MISCELLANEOUS EQUIPMENT COVERAGE FORM DECLARATIONS H633-000095-06 LIMITS OF INSURANCE: $ 19,200 COVERED PROPERTY Description of Property Limit of Insurance Miscellaneous Property. Maximum per Item $,2,500. $19,200 DEDUCTIBLE: $ 5,000 each occurrence LOSS PAYABLE to you and as interest may appear Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and what is not covered. Throughout this policy,the words"you" and"your"refer to the Named Insured shown in the Declarations. The words"we,""us"and"our"refer to the Company providing this insurance. Other words and phrases that appear in quotation marks have special meaning. Refer to the DEFINITIONS section of this Coverage Form. A. COVERAGE We will pay for"loss"to Covered Property from any of the Covered Causes of Loss. 1. COVERED PROPERTY,as used in this Coverage Form, means the above described equipment that is your property or property of others in your care, custody or control. 2. PROPERTY NOT COVERED Covered Property does not include: a. Accounts,bills,deeds,notes, securities, evidences of debt, letters of credit,tickets,passports, documents, manuscripts, mechanical drawings, valuable papers of any kind,record electronic data and media; b. Money, currency,bullion,gold, silver and other precious metals, diamonds,precious or semi-precious stones,jewelry, furs and fine arts; MF 115 9 07109 Page 1 of 5 c. Property held for sale; d. Contraband, or property in the course of illegal transportation or trade; or e. Land or water. 3. COVERED CAUSES OF LOSS Covered Causes of Loss means RISKS OF DIRECT PHYSICAL"LOSS" to Covered Property except those causes of"loss"listed in the Exclusions. 4. COVERAGE EXTENSIONS a. Debris Removal (1) We will pay your expenses to remove debris of Covered Property caused by or resulting from a Covered Cause of Loss that occurs during the policy period. The expenses will be paid only if they are reported to us in writing within 180 days of the earlier of: (a) The date of direct physical"loss"; or (b) The end of the policy period. (2) We will pay up to$10,000 for debris removal expense in any one occurrence when the sum of the direct "loss"and debris removal expense exceeds the applicable Limit of Insurance shown in this Coverage Form Declarations. (3) This coverage extension for debris removal does not apply to costs to: (a) Extract"pollutants"from land or water; or (b) Remove, restore or replace polluted land or water. b. Pollutant cleanup and Removal (1) We will pay your expenses to extract"pollutants"from land or water if the release, discharge or dispersal of the"pollutants"is caused by or results from a Covered Cause of Loss that occurs during the policy period. The expenses will be paid only if they are reported to us in writing within 180 days of the earlier of: (a) The date of direct physical"loss", or (b) The end of the policy period. (2) The most we will pay under this Coverage Extension is$25,000 for the sum of all such expenses arising out of Covered Causes of Loss occurring during each separate 12 month period of this policy. B. EXCLUSIONS 1. We will not pay for a"loss"caused directly or indirectly by any of the following. Such"loss"is excluded regardless of any other cause or event that contributes concurrently or in any sequence to the"loss". NIF 115 9 07109 Page 2 of 5 a. Governmental Action Seizure or destruction of property by order of government authority. But we will pay for damage or destruction of Covered Property ordered by governmental authority: (1) Taken at the time of a fire to prevent its spread if the fire would be covered under this Coverage Form; or (2) That is a direct result of a Covered cause of Loss. b. Nuclear hazard (1) Any weapon employing atomic fission or fusion;or (2) Nuclear reaction or radiation, or radioactive contamination from any other cause. But we will pay for direct"loss"caused by resulting fire if the fire would be covered under this Coverage Form. c. War and Military Action (1) War, including undeclared war or civil war; (2) Warlike action by military force, including action in hindering or defending against an actual or intended attack,by any government, sovereign or other authority using military personnel or other agents; or (3) Insurrection,rebellion,revolution,usurped power or action taken by governmental authority in hindering or defending against any of these. d. Ordinance or Law The enforcement of any ordinance or law: (1) Regulating the construction,use or repair of any property; or (2) Requiring the tearing down of any property, including the cost of removing its debris. 2. We will not pay for a"loss"caused by or resulting from any of the following: a. Delay, loss of use, loss of market or any other consequential loss. b. Dishonest acts by: (1) You,your employees or authorized representatives; (2) Anyone else with an interest in the property, or their employees or authorized representatives; or (3) Anyone else to whom the property is entrusted. This exclusion applies whether or not such persons are acting alone or in collusion with other persons or such acts occur during the hours of employment. But this exclusion does not apply to Covered Property that is entrusted to others who are carriers for hire. c. Unexplained disappearance. NIU 115 9 07109 Page 3 of 5 d. Shortage found upon taking inventory. e. Processing or work upon the Covered Property. But we will pay for direct"loss"caused by resulting fire or explosion. L Artificially generated current creating a short circuit to other electrical disturbance within the Covered Property. But we will pay for direct"loss"caused by resulting fire or explosion. g. Faulty materials, improper workmanship, errors in design or specifications. h. Theft from any unattended vehicle owned,leased or operated by you unless at the time of theft its windows, doors and compartments were closed an locked and there are visible signs that the theft was the result of forced entry. 3. We will not pay for a"loss"caused by or resulting from any of the following. But if"loss"by a Covered Cause of Loss results,we will pay for that resulting"loss". a. Wear,tear,gradual deterioration, depreciation, any quality in the property that causes it to damage or destroy itself;hidden or latent defect; mechanical breakdown; corrosion or rust. b. Dryness or dampness of atmosphere, extremes or changes of temperature including freezing; insects,vermin, rodents or worms. C. LIIVIITS OF INSURANCE The most we will pay for"loss"in any one occurrence: 1. For Covered property is the applicable Limit of Insurance shown in the Declarations. 2. For Coverage Extensions is the Limit of Insurance applicable to a Coverage Extension. D. DEDUCTIBLE We will not pay for"loss"in any one occurrence until the amount of adjusted"loss"exceeds the deductible shown in this Coverage Form declarations. We will then pay the amount of the adjusted"loss"in excess of the Deductible, up to the applicable Limit of Insurance. E. ADDITIONAL CONDITIONS The following conditions apply in addition to the Inland Marine Conditions and Common Policy Conditions: 1. Coverage Territory We insure Covered Property wherever located within the 50 states of The United States of America,District of Columbia and Canada. 2. Coinsurance All Covered property must be insured for its total values as of the time of"loss"or you will incur a penalty. The penalty is that we will pay only the proportion of any"loss"that the Limit of Insurance shown in the Inland Marine NT 115 9 07109 Page 4 of 5 Declarations for all Covered Property bears to the total value of all Covered property as of the time of"loss". If the Covered Property consists of two or more items which are scheduled in this Coverage Form Declarations, or in a schedule referenced in the Declarations,with a Limit of Insurance applying to each item,this penalty will apply to each item separately. 3. Impairment Of Recovery Rights If in any act or agreement after a"loss"you impair our right to recover from others liable for the"loss",we will not pay you for that"loss". 4. Valuation The valuation condition contained in the Inland Marine Conditions is replaced by the following: The value of properly will be the least of the following amounts: a. The actual cash value of that property; b. The cost of reasonably restoring that property to its condition immediately before"loss"; or C. The cost of replacing that property with substantially identical property. In the event of"loss",the value of property will be determined as of the time of"loss". However, we will not deduct depreciation on the adjustment of a partial "loss"to an item when the"loss"is less than twenty percent (20%)of the actual cash value of the item. F. DEFINITIONS 1. "Loss"means accidental"loss"or damage. 2 "Pollutants"means any Covered Property that becomes a solid, liquid,gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled,reconditioned or reclaimed. MF 115 9 07109 Page 5 of 5 COMMERCIAL INLAND MARINE CM 00 67 03 10 VALUABLE PAPERS AND RECORDS COVERAGE FORM Various provisions in this policy restrict coverage. b. We will pay for direct physical loss or dam- Read the entire policy carefully to determine rights, age to Covered Property, caused by abrupt duties and what is and is not covered. collapse of a building or any part of a build- Throughout this policy, the words "you" and "your" ing that contains Covered Property insured refer to the Named Insured shown in the Declarations. under this coverage form, if such collapse is The words "we", "us" and 'bur" refer to the Company caused by one or more of the following: providing this insurance. (1) Building decay that is hidden from view, Other words and phrases that appear in quotation unless the presence of such decay is marks have special meaning. Refer to Section F — known to an insured prior to collapse; Definitions. (2) Insect or vermin damage that is hidden A. Coverage from view, unless the presence of such damage is known to an insured prior to We will pay for direct physical loss of or damage to collapse; Covered Property from any of the Covered Caus- es of Loss. (3) Use of defective material or methods in construction, remodeling or renovation if 1. Covered Property, as used in this coverage the abrupt collapse occurs during the form, means "valuable papers and records" course of the construction, remodeling that are your property or property of others in or renovation. your care, custody or control. (4) Use of defective material or methods in 2. Property Not Covered construction, remodeling or renovation if Covered Property does not include: the abrupt collapse occurs after the a. Property not specifically declared and de- construction, remodeling or renovation scribed in the Declarations if such property is complete, but only if the collapse is cannot be replaced with other property of caused in part by: like kind and quality; (a) A cause of loss listed in Paragraph b. Property held as samples or for delivery (1) or(2); after sale; (b) One or more of the following causes c. Property in storage away from the "premis of loss: Fire; lightning; windstorm; es" shown in the Declarations; or hail; explosion; smoke; aircraft; vehi- cles; riot; civil commotion; vandalism; d. Contraband, or property in the course of leakage from fire extinguishing illegal transportation or trade. equipment; sinkhole collapse; vol- 3. Covered Causes Of Loss canic action; breakage of building Covered Causes of Loss means Direct Physi- glass; falling objects; weight of snow, cal Loss Or Damage to Covered Property ex- ice sleet; water damage; earth- cal those causes of loss listed in the Exclu- quake, ; all only as insured against in this coverage form; sions. 4. Additional Coverage—Collapse (c) Weight of people or personal proper- ty; or The coverage provided under this Additional (d) Weight of rain that collects on a roof. Coverage — Collapse applies only to an abrupt collapse as described and limited in Para- c. This Additional Coverage — Collapse will graphs a.through c. not increase the Limits of Insurance provid- a. For the purpose of this Additional Coverage ed in this coverage form. — Collapse, abrupt collapse means an ab- rupt falling down or caving in of a building or any part of a building with the result that the building or part of the building cannot be occupied for its intended purpose. CM 00 67 03 10 C Insurance Services Office, Inc., 2009 Page 1 of 4 13 6. Coverage Extensions (2) Warlike action by a military force, includ- a. Removal ing action in hindering or defending against an actual or expected attack, by If you give us written notice within 10 days any government sovereign or other au- of removal of your "valuable papers and thority using military personnel or other records" because of imminent danger of agents; or loss or damage, we will pay for loss or damage while it is: (3) Insurrection, rebellion, revolution, usurped power, or action taken by gov- (1) Ata safe place away from your "premis- ernmental authority in hindering or de- es", or fending against any of these. (2) Being taken to and returned from that Exclusions 113.1.a. through B.1.c. apply whether place. or not the loss event results in widespread This Coverage Extension is included within damage or affects a substantial area. the Limits of Insurance applicable to the 2. We will not pay for loss or damage caused by "premises" from which the Covered Proper- or resulting from any of the following: ty is removed. a. Delay, loss of use, loss of market or any b. Away From Your Premises other consequential loss. We will pay up to$5,000 for loss or damage b. Dishonest or criminal act committed by: to Covered Property while it is away from your"premises". (1) You, any of your partners, employees, directors, trustees, or authorized repre- But if a higher Limit of Insurance is speci- sentatives-, fied in the Declarations, the higher limit will apply. (2) A manager or a member if you are a limited liability company; The limit for this Coverage Extension is ad- ditional insurance. (3) Anyone else with an interest in the property, or their employees or author- B. Exclusions ized representatives; or 1. We will not pay for loss or damage caused (4) Anyone else to whom the property is directly or indirectly by any of the following. entrusted for any purpose. Such loss or damage is excluded regardless of any other cause or event that contributes con- This exclusion applies whether or not such currently or in any sequence to the loss. persons are acting alone or in collusion with other persons or such acts occur during the a. Governmental Action hours of employment. Seizure or destruction of property by order This exclusion does not apply to Covered of governmental authority. Property that is entrusted to others who are But we will pay for loss or damage caused carriers for hire or to acts of destruction by by or resulting from acts of destruction or- your employees. But theft by employees is dered by governmental authority and taken not covered. at the time of a fire to prevent its spread if c. Errors or omissions in processing or copy- the fire would be covered under this cover- ing. age form. But if errors or omissions in processing or b. Nuclear Hazard copying result in fire or explosion, we will Nuclear reaction or radiation, or radioactive pay for the direct loss or damage caused by contamination, however caused. that fire or explosion if the fire or explosion But if nuclear reaction or radiation, or radio- would be covered under this coverage form. active contamination results in fire, we will d. Electrical or magnetic injury, disturbance or pay for the direct loss or damage caused by erasure of electronic recordings. that fire if the fire would be covered under But we will pay for direct loss or damage this coverage form. caused by lightning. c. War And Military Action e. Voluntary parting with any property by you (1) War, including undeclared or civil war; or anyone entrusted with the property if in- duced to do so by any fraudulent scheme, trick, device or false pretense. Page 2 of 4 C Insurance Services Office, Inc., 2009 CM 00 67 03 10 13 f. Unauthorized instructions to transfer prop- This Exclusion, d., does not apply to the ex- erty to any person or to any place. tent that coverage is provided under the g. Neglect of an insured to use all reasonable Additional Coverage — Collapse or to col- means to save and preserve property from lapse caused by one or more of the follow- further damage at and after the time of loss. ing: Fire; lightning; windstorm; hail; explo- sion; smoke; aircraft; vehicles; riot; civil 3. We will not pay for loss or damage caused by commotion; vandalism; leakage from fire or resulting from any of the following. But if loss extinguishing equipment; sinkhole collapse; or damage by a Covered Cause of Loss re- volcanic action; breakage of building glass; sults, we will pay for the loss or damage falling objects; weight of snow, ice or sleet; caused by that Covered Cause of Loss. water damage; earthquake; weight of peo- a. Weather conditions. But this exclusion only ple or personal property; weight of rain that applies if weather conditions contribute in collects on a roof. any way with a cause or event excluded in e. Wear and tear, any quality in the property Paragraph 1. above to produce the loss or that causes it to damage or destroy itself, damage. gradual deterioration; insects, vermin or ro- b. Acts or decisions, including the failure to act dents. or decide, of any person, group, organiza- C. Limits Of Insurance tion or governmental body. The most we will pay for loss or damage in any c. Faulty, inadequate or defective: one occurrence is the applicable Limit of Insur- (1) Planning, zoning, development, survey- ance shown in the Declarations. ing, siting; D. Deductible (2) Design, specifications, workmanship, We will not pay for loss or damage in any one oc- repair, construction, renovation, remod- currence until the amount of the adjusted loss or eling, grading, compaction; damage before applying the applicable Limits of (3) Materials used in repair, construction, Insurance exceeds the Deductible shown in the renovation or remodeling; or Declarations. We will then pay the amount of the (4) Maintenance; adjusted loss or damage in excess of the Deducti- of part or all of any property wherever lo- ble, up to the applicable Limit of Insurance. cated. E. Additional Conditions d. Collapse, including any of the following 1. Valuation—Specifically Declared Items conditions of property or any part of the The following is added to General Condition F. property: Valuation in the Commercial Inland Marine (1) An abrupt falling down or caving in; Conditions: (2) Loss of structural integrity, including The value of each item of property that is spe- separation of parts of the property or cifically declared and described in the Declara- property in danger of falling down or tions is the applicable Limit of Insurance shown caving in; or in the Declarations for that item. 3 Any cracking, bulging, sagging, bending, 2. Recoveries leaning, settling, shrinking or expansion The following is added to Loss Condition H. as such condition relates to Paragraph Recovered Property in the Commercial Inland (1) or(2). Marine Conditions: If either you or we recover any property after loss settlement, that party must give the other prompt notice. At your option, the property will be returned to you. If so, your loss or damage will be readjusted based on the amount you re- ceived for the property recovered, with allow- ance for recovery expenses incurred. CM 00 67 03 10 © Insurance Services Office, Inc., 2009 Page 3 of 4 13 3. The following conditions apply in addition to the F. Definitions Commercial Inland Marine Conditions and the 1. "Valuable papers and records" means in- Common Policy Conditions: scribed, printed or written documents, manu- a. Coverage Territory scripts or records, including abstracts, books, We cover property: deeds, drawings, films, maps or mortgages. (1) Within your"premises and But "valuable papers and records" does not mean "money" or "securities" converted data (2) Away from your "premises" while in programs or instructions used in your data pro- transit or within premises of others if cessing operations, including the materials on those premises are located or the transit which the data is recorded. is within: 2. "Premises" means that interior portion of the (a) The United States of America (in- building at the address shown in the Declara- cluding its territories and posses- tions that you occupy for your business. sions); 3. "Money" means: (b) Puerto Rico; and a. Currency, coins and bank notes whether or (c) Canada. not in current use; and b. Protection Of Records b. Travelers checks, register checks and Whenever you are not open for business, money orders held for sale to the public. and except while you are actually using the 4. "Securities" means negotiable and non- property, you must keep all "valuable pa- negotiable instruments or contracts represent- pers and records" in receptacles that are ing either "money" or other property and in- described in the Declarations. cludes: a. Tokens, tickets, revenue and other stamps whether or not in current use; and b. Evidences of debt issued in connection with credit or charge cards, which cards are not of your own issue; but does not include "money". Page 4 of 4 C Insurance Services Office, Inc., 2009 CM 00 67 03 10 13 COMMERCIAL INLAND MARINE CM 00 01 09 04 COMMERCIAL INLAND MARINE CONDITIONS The following conditions apply in addition to the 6. You will not, except at your own cost, voluntari- Common Policy Conditions and applicable Additional ly make a payment, assume any obligation, or Conditions in Commercial Inland Marine Coverage incur any expense without our consent. Forms: 6. As often as may be reasonably required, permit LOSS CONDITIONS us to inspect the property proving the loss or A. Abandonment damage and examine your books and records. There can be no abandonment of any property to Also permit us to take samples of damaged us. and undamaged property for inspection, test- ing and analysis, and permit us to make copies B. Appraisal from your books and records. If we and you disagree on the value of the property 7• We may examine any insured under oath, or the amount of loss, either may make written while not in the presence of any other insured demand for an appraisal of the loss. In this event, and at such times as may be reasonably re- each party will select a competent and impartial quired, about any matter relating to this insur- appraiser. The two appraisers will select an um- ance or the claim, including an insured's books pire. If they cannot agree, either may request that and records. In the event of an examination, an selection be made by a judge of a court having ju- insured's answers must be signed. risdiction. The appraisers will state separately the value of the property and amount of loss. If they $• Send us a signed, sworn proof of loss contain- fail to agree, they will submit their differences to ing the information we request to settle the the umpire. A decision agreed to by any two will claim. You must do this within 60 days after be binding. Each party will: our request. We will supply you with the nec- essary forms. 1. Pay its chosen appraiser; and 9. Immediately send us copies of any demands, 2. Bear the other expenses of the appraisal and notices, summonses or legal papers received umpire equally. in connection with the claim or suit. If there is an appraisal, we will still retain our right 10. Cooperate with us in the investigation or set- to deny the claim. tlement of the claim. C. Duties In The Event Of Loss D. Insurance Under Two Or More Coverages You must see that the following are done in the If two or more of this policy's coverages apply to event of loss or damage to Covered Property: the same loss or damage, we will not pay more 1. Notify the police if a law may have been bro- than the actual amount of the loss or damage. ken. E. Loss Payment 2. Give us prompt notice of the loss or damage. 1. We will give notice of our intentions within 30 Include a description of the property involved. days after we receive the sworn proof of loss. 3. As soon as possible, give us a description of 2. We will not pay you more than your financial how, when and where the loss or damage oc- interest in the Covered Property. curred. 3. We may adjust losses with the owners of lost 4. Take all reasonable steps to protect the Cov- or damaged property if other than you. If we ered Property from further damage, and keep a pay the owners, such payments will satisfy your record of your expenses necessary to protect claim against us for the owners' property. We the Covered Property, for consideration in the will not pay the owners more than their financial settlement of the claim. This will not increase interest in the Covered Property. the Limit of Insurance. However, we will not pay for any subsequent loss or damage resulting 4. We may elect to defend you against suits aris- from a cause of loss that is not a Covered ing from claims of owners of property. We will Cause of Loss. Also, if feasible, set the dam- do this at our expense. aged property aside and in the best possible order for examination. CM 00 01 09 04 © ISO Properties, Inc., 2003 Page 1 of 3 ❑ 5. We will pay for covered loss or damage within I. Reinstatement Of Limit After Loss 30 days after we receive the sworn proof of loss The Limit of Insurance will not be reduced by the if you have complied with all the terms of this payment of any claim, except for total loss or dam- Coverage Part and: age of a scheduled item, in which event we will re- a. We have reached agreement with you on fund the unearned premium on that item. the amount of the loss; or J. Transfer Of Rights Of Recovery Against Others b. An appraisal award has been made. To Us 6. We will not be liable for any part of a loss that If any person or organization to or for whom we has been paid or made good by others. make payment under this Coverage Part has F. Other Insurance rights to recover damages from another, those rights are transferred to us to the extent of our 1. You may have other insurance subject to the payment. That person or organization must do same plan, terms, conditions and provisions as everything necessary to secure our rights and the insurance under this Coverage Part. If you must do nothing after loss to impair them. But you do, we will pay our share of the covered loss or may waive your rights against another party in writ- damage. Our share is the proportion that the ing: applicable Limit of Insurance under this Cover- age Part bears to the Limits of Insurance of all 1. Prior to a loss to your Covered Property. insurance covering on the same basis. 2. After a loss to your Covered Property only if, at 2. If there is other insurance covering the same time of loss, that party is one of the following: loss or damage, other than that described in 1. a. Someone insured by this insurance; or above, we will pay only for the amount of cov- b. A business firm: ered loss or damage in excess of the amount due from that other insurance, whether you can (1) Owned or controlled by you; or collect on it or not. But we will not pay more (2) That owns or controls you. than the applicable Limit of Insurance. This will not restrict your insurance. G. Pair, Sets Or Parts GENERAL CONDITIONS 1. Pair Or Set A. Concealment, Misrepresentation Or Fraud In case of loss or damage to any part of a pair This Coverage Part is void in any case of fraud, in- or set we may: tentional concealment or misrepresentation of a a. Repair or replace any part to restore the material fact, by you or any other insured, at any pair or set to its value before the loss or time, concerning: damage; or 1. This Coverage Part; b. Pay the difference between the value of the 2. The Covered Property; pair or set before and after the loss or dam- age. 3. Your interest in the Covered Property; or 2. Parts 4. A claim under this Coverage Part. In case of loss or damage to any part of Cov- B. Control Of Property ered Property consisting of several parts when Any act or neglect of any person other than you complete, we will only pay for the value of the beyond your direction or control will not affect this lost or damaged part. insurance. H. Recovered Property The breach of any condition of this Coverage Part If either you or we recover any property after loss at any one or more locations will not affect cover- settlement, that party must give the other prompt age at any location where, at the time of loss or notice. At your option, the property will be returned damage, the breach of condition does not exist. to you. You must then return to us the amount we C. Legal Action Against Us paid to you for the property. We will pay recovery No one may bring a legal action against us under expenses and the expenses to repair the recov- this Coverage Part unless: ered property, subject to the Limit of Insurance. 1. There has been full compliance with all the terms of this Coverage Part; and 2. The action is brought within 2 years after you first have knowledge of the direct loss or dam- age. Page 2 of 3 C ISO Properties, Inc., 2003 CM 00 01 09 04 ❑ D. No Benefit To Bailee 2. The cost of reasonably restoring that property No person or organization, other than you, having to its condition immediately before loss or custody of Covered Property will benefit from this damage;or insurance. 3. The cost of replacing that property with sub- E. Policy Period, Coverage Territory stantially identical property. We cover loss or damage commencing: In the event of loss or damage, the value of prop- erty will be determined as of the time of loss or 1. During the policy period shown in the Declara- damage. tions; and 2. Within the coverage territory. F. Valuation The value of property will be the least of the follow- ing amounts: 1. The actual cash value of that property; CM 00 01 09 04 C ISO Properties, Inc., 2003 Page 3 of 3 ❑ AUTO COVERAGE FORM DECLARATIONS Effective Date: 01/01/12 Policy No: H633-000095-06 Schedule Of Coverages Limit of Liability Deductible Auto Liability $ $none Personal Injury Protection $as stated in the PIP form $ Uninsured Motorists $ $none Underinsured Motorists $ $none Medical $ $none X Collision $ ACV $5,000 X Comprehensive $ ACV $5,000 Coverage Vehicle: Any auto as respects auto liability and any owned and leased autos as respects collision and Comprehensive coverage, except as may be indicated below or by endorsement. Physical damage coverage is provided at actual cash value. Vehicles five years old or newer are insured with no adjustment for depreciation and physical condition in the event of a total"loss". Physical damage coverage applies to all owned and leased vehicles, except as may be specifically excluded by the insured. Physical damage coverage includes hired and non-owned autos to a maximum unit value of$35,000 and deductible of$1,000;hired and non-owned vehicle coverage applies in excess of other valid and collectible insurance. Insurance is provided only for the coverage indicated by an x and for which an amount is shown. Self-Insured Retention S each accident Premium: Included ❑ Deposit X Non-adjustable Forms and Endorsements: CA0001(03/06), CA0038(12/02)NIF1005, NI171003 NW 1103 03199 COMMERCIAL AUTO CA 00 38 12 02 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. WAR EXCLUSION This endorsement modifies insurance provided under the following: BUSINESS AUTO COVERAGE FORM BUSINESS AUTO PHYSICAL DAMAGE COVERAGE FORM MOTOR CARRIER COVERAGE FORM SINGLE INTEREST AUTOMOBILE PHYSICAL DAMAGE INSURANCE POLICY TRUCKERS COVERAGE FORM With respect to coverage provided by this endorsement, the provisions of the Coverage Form apply unless modi- fied by the endorsement. A. Changes In Liability Coverage (3) Insurrection, rebellion, revolution, The War exclusion under Paragraph B. Exclu- usurped power, or action taken by gov- sions of Section II — Liability Coverage is re- ernmental authority in hindering or de- placed by the following: fending against any of these. WAR C. Changes In Auto Medical Payments "Bodily injury", "property damage" or "covered If the Auto Medical Payments Coverage endorse- pollution cost or expense" arising directly or in- ment is attached, then Exclusion C.6. is replaced directly, out of: by the following: a. War, including undeclared or civil war; 6. "Bodily injury", arising directly or indirectly, out of: b. Warlike action by a military force, including action in hindering or defending against an a. War, including undeclared or civil war; actual or expected attack, by any govern- b. Warlike action by a military force, including ment, sovereign or other authority using action in hindering or defending against an military personnel or other agents; or actual or expected attack, by any govern- c. Insurrection, rebellion, revolution, usurped ment, sovereign or other authority using power, or action taken by governmental au- military personnel or other agents; or thority in hindering or defending against any c. Insurrection, rebellion, revolution, usurped of these. power, or action taken by governmental au- B. Changes In Garagekeepers Coverage thority in hindering or defending against any of these. If the Garagekeepers Coverage endorsement or the Garagekeepers Coverage—Customers' Sound D. Changes In Uninsured/Underinsured Motorists Receiving Equipment endorsement is attached, Coverage the following exclusion is added: If Uninsured and/or Underinsured Motorists Cov- We will not pay for "loss" caused by or resulting erage is attached, then the following exclusion is from the following. Such "loss" is excluded regard- added: less of any other cause or event that contributes This insurance does not apply to: concurrently or in any sequence to the "loss": WAR WAR 1. "Bodily injury" or "property damage", if applica- (1) War, including undeclared or civil war; ble, arising directly or indirectly, out of: (2) Warlike action by a military force, includ- a. War, including undeclared or civil war; ing action in hindering or defending b. Warlike action by a military force, including against an actual or expected attack, by action in hindering or defending against an any government, sovereign or other au- actual or expected attack, by any govern- thority using military personnel or other ment, sovereign or other authority using agents; or military personnel or other agents; or CA 00 38 12 02 © ISO Properties, Inc., 2003 Page 1 of 2 ❑ c. Insurrection, rebellion, revolution, usurped F. Changes In Single Interest Automobile power, or action taken by governmental au- Physical Damage Insurance Policy thority in hindering or defending against any The War exclusion is replaced by the following: of these. E. Changes In Personal Injury Protection a. War, including undeclared or civil war; Coverage b. Warlike action by a military force, including 1. If Personal Injury Protection, no-fault, or other action in hindering or defending against an similaror expected attack, by any govern- ment, sovereign or other authority using a. Contains, in whole or in part, a War exclu- military personnel or other agents; or sion, that exclusion is replaced by Para- c. Insurrection, rebellion, revolution, usurped graph 2. power, or action taken by governmental au- b. Does not contain a war exclusion, Para- thority in hindering or defending against any graph 2. is added. of these. 2. This insurance does not apply to: WAR "Bodily injury" or "property damage", if applica- ble, arising directly or indirectly, out of: a. War, including undeclared or civil war; b. Warlike action by a military force, including action in hindering or defending against an actual or expected attack, by any govern- ment, sovereign or other authority using military personnel or other agents; or c. Insurrection, rebellion, revolution, usurped power, or action taken by governmental au- thority in hindering or defending against any of these. Page 2 of 2 © ISO Properties, Inc., 2003 CA 00 38 12 02 ❑ POLICY NUMBER CUSTOMIZED VEHICLE ENDORSEMENT This endorsement modifies insurance provided under the following: BUSINESS AUTO COVERAGE FORM The following is added to Paragraph C- LIMIT OF INSURANCE of SECTION III- PHYSICAL DAMAGE COVERAGE. 2. For schedule,customized covered"autos"used as chiefs,captains,police,administrative and other similar vehicles,we will pay the additional repair or replacement coasts necessary to customize the damaged"auto'with permanently installed equipment of like kind and quality,without deduction for depreciation.We will also include the cost of installation onto a replacement"auto'if the coverage"auto' is not repairable. This customization will include,but is not limited to the following: a. custom painting and gold leaf lettering b. light bars and sirens c. permanently installed radios and others communications equipment d. permanently installed computer equipment Coverage under this endorsement does not apply to any coverage"auto'designated on the schedule as being insured on an agreed-value basis. We will also pay for property owned by"you"that is permanently installed in an"auto' not owned by"you". All other terns and conditions of this policy remain unchanged. NIF1003 1298 PUBLIC ENTITY AMENDATORY ENDORSEMENT BUSINESS AUTO COVERAGE FORM This endorsement modifies insurance provided under the following: BUSINESS AUTO COVERAGE FORM WHO IS AN INSURED, subsection b, is amended to include: (6)Your volunteers if the covered"auto'is owned by the volunteer or a member of his or her household, but solely while acting within the scope of their duties and at your direction. Subsection c. is hereby added to the policy. A governmental agency or subdivision, department,municipal body or not-for profit corporation which is owned and contracted by you, for any covered"auto'. COVERAGE EXTENSIONS Supplementary Payments item(2)is amended by substituting "$1,000"for"250", and item(4) is amended by substituting"$250"for"$100". PHYSICAL DAMAGE COVERAGE item 4, Coverage Extension, is amended by substituting "$25"for-$15". PREMIUM AUDIT paragraph a, is amended as follows: The premium for this coverage Form is based on the exposures you told us you would have when this policy began. Unless otherwise indicated,the premium for this Coverage Part is non-adjustable and not subject to audit. However, we reserve the right to inspect your records. DEFINITIONS Add definitions E., "Garage Operations"shall include repair, service or maintenance Of"auto'on your premises provided that such repair, service or maintenance is conducted as part of and is limited solely to a educational course of study. NIF 1005 0107 COMMERCIAL AUTO CA 00 01 03 06 BUSINESS AUTO COVERAGE FORM Various provisions in this policy restrict coverage. SECTION I —COVERED AUTOS Read the entire policy carefully to determine rights, Item Two of the Declarations shows the "autos" that duties and what is and is not covered. are covered "autos" for each of your coverages. The Throughout this policy the words "you" and "your" re- following numerical symbols describe the "autos" that fer to the Named Insured shown in the Declarations. may be covered "autos". The symbols entered next to The words "we", "us" and "our" refer to the Company a coverage on the Declarations designate the only providing this insurance. "autos"that are covered "autos". Other words and phrases that appear in quotation A. Description Of Covered Auto Designation marks have special meaning. Refer to Section V — Symbols Definitions. Symbol Description Of Covered Auto Designation Symbols 1 An "Auto" 2 Owned "Autos" Only those "autos"you own (and for Liability Coverage any"trailers"you don't own Only while attached to power units you own). This includes those "autos"you acquire ownership of after the policy begins. 3 Owned Private Only the private passenger"autos"you own. This includes those private passen- Passenger ger"autos"you acquire ownership of after the policy begins. "Autos" Only 4 Owned "Autos" Only those "autos"you own that are not of the private passenger type (and for Li- Other Than Pri- ability Coverage any"trailers"you don't own while attached to power units you vate Passenger own). This includes those "autos" not of the private passenger type you acquire "Autos" Only ownership of after the policy begins. 6 Owned "Autos" Only those "autos"you own that are required to have No-Fault benefits in the state Subject To No- where they are licensed or principally garaged. This includes those "autos"you Fault acquire ownership of after the policy begins provided they are required to have No- Fault benefits in the state where they are licensed or principally garaged. 6 Owned "Autos" Only those "autos"you own that because of the law in the state where they are Subject To A licensed or principally garaged are required to have and cannot reject Uninsured Compulsory Un- Motorists Coverage. This includes those "autos"you acquire ownership of after the insured Motor- policy begins provided they are subject to the same state uninsured motorists re- ists Law quirement. 7 Specifically De- Only those "autos" described in Item Three of the Declarations for which a pre- scribed "Autos" mium charge is shown (and for Liability Coverage any"trailers"you don't own while attached to any power unit described in Item Three). 8 Hired "Autos" Only those "autos"you lease, hire, rent or borrow. This does not include any"auto" Only you lease, hire, rent, or borrow from any of your"employees", partners (if you are a partnership), members (if you are a limited liability company) or members of their households. 9 Nonowned Only those "autos"you do not own, lease, hire, rent or borrow that are used in con- "Autos" Only nection with your business. This includes "autos" owned by your"employees", partners (if you are a partnership), members (if you are a limited liability company), or members of their households but only while used in your business or your per- sonal affairs. CA 00 01 03 06 C ISO Properties, Inc., 2005 Page 1 of 12 ❑ 19 Mobile Equip- Only those "autos"that are land vehicles and that would qualify under the defini- ment Subject To tion of"mobile equipment" under this policy if they were not subject to a compul- Compulsory Or sory or financial responsibility law or other motor vehicle insurance law where they Financial Re- are licensed or principally garaged. sponsibility Or Other Motor Ve- hicle Insurance Law Only B. Owned Autos You Acquire After The Policy SECTION II — LIABILITY COVERAGE Begins A. Coverage 1. If Symbols 1, 2, 3, 4, 6, 6 or 19 are entered We will pay all sums an "insured" legally must pay next to a coverage in Item Two of the Declara- as damages because of"bodily injury" or"property tions, then you have coverage for "autos" that damage" to which this insurance applies, caused you acquire of the type described for the re- by an "accident" and resulting from the ownership, mainder of the policy period. maintenance or use of a covered "auto". 2. But, if Symbol 7 is entered next to a coverage We will also pay all sums an "insured" legally must in Item Two of the Declarations, an "auto" you pay as a "covered pollution cost or expense" to acquire will be a covered "auto" for that cover- which this insurance applies, caused by an "acci- age only if: dent" and resulting from the ownership, mainte- a. We already cover all "autos" that you own nance or use of covered "autos". However, we will for that coverage or it replaces an "auto" only pay for the "covered pollution cost or ex- you previously owned that had that cover- pense" if there is either "bodily injury" or "property age; and damage" to which this insurance applies that is b. You tell us within 30 days after you acquire caused by the same "accident". it that you want us to cover it for that cover- We have the right and duty to defend any "in- age. sured" against a "suit" asking for such damages or C. Certain Trailers, Mobile Equipment And a "covered pollution cost or expense". However, Temporary Substitute Autos we have no duty to defend any "insured" against a If Liability Coverage is provided b this Coverage "suit" seeking damages for "bodily injury" or"prop- If g p Y g erty damage ora covered pollution cost or ex- Form, the following types of vehicles are also cov- pense"to which this insurance does not apply. We ered "autos"for Liability Coverage: may investigate and settle any claim or "suit" as 1. "Trailers" with a load capacity of 2,000 pounds we consider appropriate. Our duty to defend or or less designed primarily for travel on public settle ends when the Liability Coverage Limit of roads. Insurance has been exhausted by payment of 2. "Mobile equipment" while being carried or judgments or settlements. towed by a covered "auto". 1. Who Is An Insured 3. Any "auto" you do not own while used with the The following are "insureds": permission of its owner as a temporary substi- a. You for any covered "auto". tute for a covered "auto" you own that is out of service because of its: b. Anyone else while using with your permis- sion a covered "auto" you own, hire or bor- a. Breakdown; row except: b. Repair; (1) The owner or anyone else from whom c. Servicing; you hire or borrow a covered "auto". This d. "Loss"; or exception does not apply if the covered "auto" is a "trailer" connected to a cov- e. Destruction. ered "auto"you own. Page 2 of 12 C ISO Properties, Inc., 2005 CA 00 01 03 06 ❑ (2) Your "employee" if the covered "auto" is b. Out-Of-State Coverage Extensions owned by that "employee" or a member While a covered "auto" is away from the of his or her household. state where it is licensed we will: (3) Someone using a covered "auto" while (1) Increase the Limit of Insurance for Li- he or she is working in a business of ability Coverage to meet the limits speci- selling, servicing, repairing, parking or fied by a compulsory or financial re- storing "autos" unless that business is sponsibility law of the jurisdiction where yours. the covered "auto" is being used. This (4) Anyone other than your "employees", extension does not apply to the limit or partners (if you are a partnership), limits specified by any law governing members (if you are a limited liability motor carriers of passengers or prop- company), or a lessee or borrower or erty. any of their "employees", while moving (2) Provide the minimum amounts and property to or from a covered "auto". types of other coverages, such as no- (5) A partner (if you are a partnership), or a fault, required of out-of-state vehicles by member (if you are a limited liability the jurisdiction where the covered "auto" company) for a covered "auto" owned by is being used. him or her or a member of his or her We will not pay anyone more than once for household. the same elements of loss because of c. Anyone liable for the conduct of an "in- these extensions. sured" described above but only to the ex- B. Exclusions tent of that liability. 2. Coverage Extensions This insurance does not apply to any of the follow- ing: a. Supplementary Payments 1. Expected Or Intended Injury We will pay for the "insured": "Bodily injury" or "property damage" expected (1) All expenses we incur. or intended from the standpoint of the "in- (2) Up to $2,000 for cost of bail bonds (in- sured". cluding bonds for related traffic law viola- 2. Contractual tions) required because of an "accident" Liability assumed under any contract or agree- we cover. We do not have to furnish ment. these bonds. (3) The cost of bonds to release attach- But this exclusion does not apply to liability for damages: ments in any "suit" against the "insured" we defend but only for bond amounts a. Assumed in a contract or agreement that is within our Limit of Insurance. an "insured contract" provided the "bodily (4) All reasonable expenses incurred by the injury" or "property damage" occurs subse- "insured" at our request, including ac- quent to the execution of the contract or tual loss of earnings up to $250 a day agreement; or because of time off from work. b. That the "insured" would have in the ab- (5) All costs taxed against the "insured" in sence of the contract or agreement. any "suit" against the "insured" we de- 3. Workers' Compensation fend. Any obligation for which the "insured" or the (6) All interest on the full amount of any "insured's" insurer may be held liable under judgment that accrues after entry of the any workers' compensation, disability benefits judgment in any "suit" against the "in- or unemployment compensation law or any sured" we defend, but our duty to pay similar law. interest ends when we have paid, of- 4. Employee Indemnification And Employer's fered to pay or deposited in court the Liability part of the judgment that is within our "Bodily injury"to: Limit of Insurance. These payments will not reduce the Limit of a. An "employee" of the "insured" arising out Insurance. of and in the course of: (1) Employment by the "insured"; or CA 00 01 03 06 © ISO Properties, Inc., 2005 Page 3 of 12 ❑ (2) Performing the duties related to the con- 9. Operations duct of the "insured's" business; or "Bodily injury" or "property damage" arising out b. The spouse, child, parent, brother or sister of the operation of: of that "employee" as a consequence of a. Any equipment listed in Paragraphs 6.b. Paragraph a. above. and 6.c. of the definition of "mobile equip- This exclusion applies: ment"; or (1) Whether the "insured" may be liable as b. Machinery or equipment that is on, at- an employer or in any other capacity; tached to, or part of, a land vehicle that and would qualify under the definition of"mobile (2) To any obligation to share damages with equipment" if it were not subject to a com- or repay someone else who must pay pulsory or financial responsibility law or damages because of the injury. other motor vehicle insurance law where it But this exclusion does not apply to "bodily in- is licensed or principally garaged. jury" to domestic "employees" not entitled to 10. Completed Operations workers' compensation benefits or to liability "Bodily injury" or "property damage" arising out assumed by the "insured" under an "insured of your work after that work has been com- contract". For the purposes of the Coverage pleted or abandoned. Form, a domestic "employee" is a person en- In this exclusion, your work means: gaged in household or domestic work per- formed principally in connection with a resi- a. Work or operations performed by you or on dence premises. your behalf; and 5. Fellow Employee b. Materials, parts or equipment furnished in "Bodily injury" to any fellow "employee" of the connection with such work or operations. "insured" arising out of and in the course of the Your work includes warranties or representa- fellow "employee's" employment or while per- tions made at any time with respect to the fit- forming duties related to the conduct of your ness, quality, durability or performance of any business. of the items included in Paragraph a. or b. above. 6. Care, Custody Or Control Your work will be deemed completed at the "Property damage" to or"covered pollution cost earliest of the following times: or expense" involving property owned or trans- ported by the "insured" or in the "insured's" (1) When all of the work called for in your care, custody or control. But this exclusion contract has been completed. does not apply to liability assumed under a (2) When all of the work to be done at the sidetrack agreement. site has been completed if your contract 7. Handling Of Property calls for work at more than one site. "Bodily injury" or "property damage" resulting (3) When that part of the work done at a job from the handling of property: site has been put to its intended use by a. Before it is moved from the place where it is any person or organization other thananother contractor or subcontractor accepted by the "insured" for movement working on the same project. into or onto the covered "auto"; or Work that may need service maintenance cor- b. After it is moved from the covered "auto" to rection, repair or replacement, but which is oth- erwise complete, will be treated as completed. "insured". 11. Pollution 8. Movement Of Property By Mechanical Device "Bodily injury" or "property damage" arising out of the actual, alleged or threatened discharge, "Bodily injury" or "property damage" resulting dispersal, seepage, migration, release or es- from the movement of property by a mechani- cape of"pollutants": cal device (other than a hand truck) unless the a. That are, or that are contained in an prop- erty device is attached to the covered "auto". y p p- erty that is: (1) Being transported or towed by, handled, or handled for movement into, onto or from, the covered "auto"; Page 4 of 12 C ISO Properties, Inc., 2005 CA 00 01 03 06 ❑ (2) Otherwise in the course of transit by or c. Insurrection, rebellion, revolution, usurped on behalf of the "insured"; or power, or action taken by governmental au- (3) Being stored, disposed of, treated or thority in hindering or defending against any processed in or upon the covered of these. "auto"; 13. Racing b. Before the "pollutants" or any property in Covered "autos" while used in any professional which the "pollutants" are contained are or organized racing or demolition contest or moved from the place where they are ac- stunting activity, or while practicing for such cepted by the "insured" for movement into contest or activity. This insurance also does not or onto the covered "auto"; or apply while that covered "auto" is being pre- c. After the "pollutants" or any property in pared for such a contest or activity. which the "pollutants" are contained are C. Limit Of Insurance moved from the covered "auto" to the place Regardless of the number of covered "autos", "in- where they are finally delivered, disposed of sureds" premiums paid, claims made or vehicles or abandoned by the "insured". involved in the "accident", the most we will pay for Paragraph a. above does not apply to fuels, lu- the total of all damages and "covered pollution bricants, fluids, exhaust gases or other similar cost or expense" combined, resulting from any "pollutants" that are needed for or result from one "accident" is the Limit of Insurance for Liability the normal electrical, hydraulic or mechanical Coverage shown in the Declarations. functioning of the covered "auto" or its parts, if: All "bodily injury", "property damage" and "covered (1) The "pollutants" escape, seep, migrate, pollution cost or expense" resulting from continu- or are discharged, dispersed or released ous or repeated exposure to substantially the directly from an "auto" part designed by same conditions will be considered as resulting its manufacturer to hold, store, receive from one "accident". or dispose of such "pollutants"; and No one will be entitled to receive duplicate pay- (2) The "bodily injury", "property damage" or ments for the same elements of "loss" under this "covered pollution cost or expense" does Coverage Form and any Medical Payments Cov- not arise out of the operation of any erage Endorsement, Uninsured Motorists Cover- equipment listed in Paragraphs 6.b. and age Endorsement or Underinsured Motorists Cov- 6.c. of the definition of "mobile equip- erage Endorsement attached to this Coverage ment". Part. Paragraphs b. and c. above of this exclusion SECTION III — PHYSICAL DAMAGE COVERAGE do not apply to "accidents" that occur away A. Coverage from premises owned by or rented to an "in- sured" with respect to "pollutants" not in or 1. We will pay for "loss" to a covered "auto" or its upon a covered "auto" if: equipment under: (1) The "pollutants" or any property in which a. Comprehensive Coverage the "pollutants" are contained are upset, From any cause except: overturned or damaged as a result of (1) The covered "auto's" collision with an- the maintenance or use of a covered other object; or "auto"; and (2) The discharge, dispersal, seepage, mi- (2) The covered "auto's" overturn. gration, release or escape of the "pollut- b. Specified Causes Of Loss Coverage ants" is caused directly by such upset, Caused by: overturn or damage. (1) Fire, lightning or explosion; 12. War (2) Theft; "Bodily injury" or "property damage" arising di- (3) Windstorm, hail or earthquake; rectly or indirectly out of: a. War, including undeclared or civil war; (4) Flood; b. Warlike action by a military force, including (6) Mischief or vandalism; or action in hindering or defending against an (6) The sinking, burning, collision or derail- actual or expected attack, by any govern- ment of any conveyance transporting ment, sovereign or other authority using the covered "auto". military personnel or other agents; or CA 00 01 03 06 © ISO Properties, Inc., 2005 Page 6 of 12 ❑ c. Collision Coverage (2) Specified Causes Of Loss only if the Caused by: Declarations indicate that Specified Causes Of Loss Coverage is provided (1) The covered "auto's" collision with an- for any covered "auto"; or other object; or (3) Collision only if the Declarations indicate (2) The covered "auto's" overturn. that Collision Coverage is provided for 2. Towing any covered "auto". We will pay up to the limit shown in the Decla- However, the most we will pay for any ex- rations for towing and labor costs incurred each penses for loss of use is $20 per day, to a time a covered "auto" of the private passenger maximum of$600. type is disabled. However, the labor must be B. Exclusions performed at the place of disablement. 1. We will not pay for"loss" caused by or resulting 3. Glass Breakage— Hitting A Bird Or Animal from any of the following. Such "loss" is ex- - Falling Objects Or Missiles cluded regardless of any other cause or event If you carry Comprehensive Coverage for the that contributes concurrently or in any se- damaged covered "auto", we will pay for the fol- quence to the "loss". lowing under Comprehensive Coverage: a. Nuclear Hazard a. Glass breakage; (1) The explosion of any weapon employing b. "Loss" caused by hitting a bird or animal, atomic fission or fusion, or and (2) Nuclear reaction or radiation, or radioac- c. "Loss" caused by falling objects or missiles. tive contamination, however caused. However, you have the option of having glass b. War Or Military Action breakage caused by a covered "auto's" colli- (1) War, including undeclared or civil war sion or overturn considered a "loss" under Col- lision Coverage. (2) Warlike action by a military force, includ- ing action in hindering or defending 4. Coverage Extensions against an actual or expected attack, by a. Transportation Expenses any government, sovereign or other au- We will pay up to $20 per day to a maxi- thority using military personnel or other mum of $600 for temporary transportation agents;or expense incurred by you because of the to- (3) Insurrection, rebellion, revolution, tal theft of a covered "auto" of the private usurped power or action taken by gov- passenger type. We will pay only for those ernmental authority in hindering or de- covered "autos" for which you carry either fending against any of these. Comprehensive or Specified Causes of 2. We will not pay for "loss" to any covered "auto" Loss Coverage. We will pay for temporary while used in any professional or organized transportation expenses incurred during the racing or demolition contest or stunting activity, period beginning 48 hours after the theft or while practicing for such contest or activity. and ending, regardless of the policy's expi- We will also not pay for "loss" to any covered ration, when the covered "auto" is returned "auto" while that covered "auto" is being Pre- to use or we pay for its "loss". pared for such a contest or activity. b. Loss Of Use Expenses 3. We will not pay for"loss" caused by or resulting For Hired Auto Physical Damage, we will from any of the following unless caused by pay expenses for which an "insured" be- other"loss"that is covered by this insurance: comes legally responsible to pay for loss of a. Wear and tear, freezing, mechanical or use of a vehicle rented or hired without a electrical breakdown. driver, under a written rental contract or agreement. We will pay for loss of use ex- b. Blowouts, punctures or other road damage penses if caused by: to tires. (1) Other than collision only if the Declara- 4. We will not pay for "loss" to any of the follow- tions indicate that Comprehensive Cov- ing: erage is provided for any covered "auto"; a. Tapes, records, discs or other similar audio, visual or data electronic devices designed for use with audio, visual or data electronic equipment. Page 6 of 12 © ISO Properties, Inc., 2005 CA 00 01 03 06 ❑ b. Any device designed or used to detect 3. If a repair or replacement results in better than speed measuring equipment such as radar like kind or quality, we will not pay for the or laser detectors and any jamming appara- amount of the betterment. tus intended to elude or disrupt speed D. Deductible measurement equipment. For each covered "auto", our obligation to pay for, c. Any electronic equipment, without regard to repair, return or replace damaged or stolen prop- whether this equipment is permanently in- erty will be reduced by the applicable deductible stalled, that receives or transmits audio, shown in the Declarations. Any Comprehensive visual or data signals and that is not de- Coverage deductible shown in the Declarations signed solely for the reproduction of sound. does not apply to "loss" caused by fire or lightning. d. Any accessories used with the electronic SECTION IV— BUSINESS AUTO CONDITIONS equipment described in Paragraph c. above. The following conditions apply in addition to the Exclusions 4.c. and 4.d. do not apply to: Common Policy Conditions: A. Loss Conditions a. Equipment designed solely for the repro- duction of sound and accessories used with 1. Appraisal For Physical Damage Loss such equipment, provided such equipment If you and we disagree on the amount of"loss", is permanently installed in the covered either may demand an appraisal of the "loss". "auto" at the time of the "loss" or such In this event, each party will select a competent equipment is removable from a housing appraiser. The two appraisers will select a unit which is permanently installed in the competent and impartial umpire. The apprais- covered "auto" at the time of the "loss", and ers will state separately the actual cash value such equipment is designed to be solely and amount of "loss". If they fail to agree, they operated by use of the power from the will submit their differences to the umpire. A "auto's" electrical system, in or upon the decision agreed to by any two will be binding. covered "auto"; or Each party will: b. Any other electronic equipment that is: a. Pay its chosen appraiser; and (1) Necessary for the normal operation of b. Bear the other expenses of the appraisal the covered "auto" or the monitoring of and umpire equally. the covered "auto's" operating system; If we submit to an appraisal, we will still retain or our right to deny the claim. (2) An integral part of the same unit hous- 2. Duties In The Event Of Accident, Claim, ing any sound reproducing equipment Suit Or Loss described in Paragraph a. above and permanently installed in the opening of We have no duty to provide coverage under the dash or console of the covered this policy unless there has been full compli- "auto" normally used by the manufac- ance with the following duties: turer for installation of a radio. a. In the event of "accident", claim, "suit" or 5. We will not pay for "loss" to a covered "auto" "loss", you must give us or our authorized due to "diminution in value". representative prompt notice of the "acci- C. Limit Of Insurance dent" or"loss". Include: 1. The most we will pay for "loss" in any one "ac- (1) How, when and where the "accident" or cident" is the lesser of: "loss" occurred; a. The actual cash value of the damaged or (2) The "insured's" name and address; and stolen property as of the time of the "loss"; (3) To the extent possible, the names and or addresses of any injured persons and b. The cost of repairing or replacing the dam- witnesses. aged or stolen property with other property b. Additionally, you and any other involved of like kind and quality. "insured" must: 2. An adjustment for depreciation and physical (1) Assume no obligation, make no pay- condition will be made in determining actual ment or incur no expense without our cash value in the event of a total "loss". consent, except at the "insured's" own cost. CA 00 01 03 06 C ISO Properties, Inc., 2005 Page 7 of 12 ❑ (2) Immediately send us copies of any re- c. Take all or any part of the damaged or sto- quest, demand, order, notice, summons len property at an agreed or appraised or legal paper received concerning the value. claim or"suit". If we pay for the "loss", our payment will in- (3) Cooperate with us in the investigation or clude the applicable sales tax for the damaged settlement of the claim or defense or stolen property. against the "suit". 5. Transfer Of Rights Of Recovery Against (4) Authorize us to obtain medical records Others To Us or other pertinent information. If any person or organization to or for whom we (5) Submit to examination, at our expense, make payment under this Coverage Form has by physicians of our choice, as often as rights to recover damages from another, those we reasonably require. rights are transferred to us. That person or or- c. If there is "loss" to a covered "auto" or its ganization must do everything necessary to equipment you must also do the following: secure our rights and must do nothing after "accident" or"loss"to impair them. (1) Promptly notify the police if the covered "auto" or any of its equipment is stolen. B. General Conditions (2) Take all reasonable steps to protect the 1. Bankruptcy covered "auto" from further damage. Bankruptcy or insolvency of the "insured" or the Also keep a record of your expenses for "insured's" estate will not relieve us of any obli- consideration in the settlement of the gations under this Coverage Form. claim. 2. Concealment, Misrepresentation Or Fraud (3) Permit us to inspect the covered "auto" This Coverage Form is void in any case of and records proving the "loss" before its fraud by you at any time as it relates to this repair or disposition. Coverage Form. It is also void if you or any (4) Agree to examinations under oath at our other "insured", at any time, intentionally con- request and give us a signed statement ceal or misrepresent a material fact concern- of your answers. ing: 3. Legal Action Against Us a. This Coverage Form; No one may bring a legal action against us un- b. The covered "auto"; der this Coverage Form until: c. Your interest in the covered "auto"; or a. There has been full compliance with all the d. A claim under this Coverage Form. terms of this Coverage Form; and 3. Liberalization b. Under Liability Coverage, we agree in writ- ing that the "insured" has an obligation to If we revise this Coverage Form to provide pay or until the amount of that obligation more coverage without additional premium has finally been determined by judgment af- charge, your policy will automatically provide ter trial. No one has the right under this pol- the additional coverage as of the day the revi- icy to bring us into an action to determine sion is effective in your state. the "insured's" liability. 4. No Benefit To Bailee— Physical Damage 4. Loss Payment— Physical Damage Coverages Coverages We will not recognize any assignment or grant At our option we may: any coverage for the benefit of any person or a. Pay for, repair or replace damaged or stolen organization holding, storing or transporting property for a fee regardless of any other provi- sion of this Coverage Form. b. Return the stolen property, at our expense. We will pay for any damage that results to the "auto"from the theft; or Page 8 of 12 C ISO Properties, Inc., 2005 CA 00 01 03 06 ❑ 5. Other Insurance 7. Policy Period, Coverage Territory a. For any covered "auto" you own, this Cov- Under this Coverage Form, we cover "acci- erage Form provides primary insurance. For dents" and "losses" occurring: any covered "auto" you don't own, the in- a. During the policy period shown in the Dec- surance provided by this Coverage Form is larations', and excess over any other collectible insurance. However, while a covered "auto" which is a b. Within the coverage territory. "trailer" is connected to another vehicle, the The coverage territory is: Liability Coverage this Coverage Form pro- a. The United States of America; vides for the "trailer" is: (1) Excess while it is connected to a motor b. The territories and possessions of the vehicle you do not own. United States of America; (2) Primary while it is connected to a cov- c. Puerto Rico; ered "auto"you own. d. Canada; and b. For Hired Auto Physical Damage Coverage, e. Anywhere in the world if: any covered "auto" you lease, hire, rent or (1) A covered "auto" of the private passen- borrow is deemed to be a covered "auto" ger type is leased, hired, rented or bor- you own. However, any "auto" that is rowed without a driver for a period of 30 leased, hired, rented or borrowed with a days or less; and driver is not a covered "auto". (2) The "insured's" responsibility to pay c. Regardless of the provisions of Paragraph damages is determined in a "suit" on a. above, this Coverage Form's Liability the merits, in the United States of Amer- Coverage is primary for any liability as- ica, the territories and possessions of sumed under an "insured contract". the United States of America, Puerto d. When this Coverage Form and any other Rico, or Canada or in a settlement we Coverage Form or policy covers on the agree to. same basis, either excess or primary, we We also cover "loss" to, or "accidents" involy- will pay only our share. Our share is the ing, a covered "auto" while being transported proportion that the Limit of Insurance of our between any of these places. Coverage Form bears to the total of the lim- g, Two Or More Coverage Forms Or Policies its of all the Coverage Forms and policies Issued By Us covering on the same basis. 6. Premium Audit If this Coverage Form and any other Coverage Form or policy issued to you by us or any com- a. The estimated premium for this Coverage pany affiliated with us apply to the same "acci- Form is based on the exposures you told us dent", the aggregate maximum Limit of Insur- you would have when this policy began. We ance under all the Coverage Forms or policies will compute the final premium due when shall not exceed the highest applicable Limit of we determine your actual exposures. The Insurance under any one Coverage Form or estimated total premium will be credited policy. This condition does not apply to any against the final premium due and the first Coverage Form or policy issued by us or an af- Named Insured will be billed for the bal- filiated company specifically to apply as excess ance, if any. The due date for the final pre- insurance over this Coverage Form. mium or retrospective premium is the date SECTION V— DEFINITIONS shown as the due date on the bill. If the es- timated total premium exceeds the final A. "Accident" includes continuous or repeated expo- premium due, the first Named Insured will sure to the same conditions resulting in "bodily in- get a refund. jury" or"property damage". b. If this policy is issued for more than one B. "Auto" means: year, the premium for this Coverage Form 1. A land motor vehicle, "trailer" or semitrailer de- will be computed annually based on our signed for travel on public roads; or rates or premiums in effect at the beginning of each year of the policy. CA 00 01 03 06 C ISO Properties, Inc., 2005 Page 9 of 12 ❑ 2. Any other land vehicle that is subject to a com- Paragraph a. above does not apply to fuels, lu- pulsory or financial responsibility law or other bricants, fluids, exhaust gases or other similar motor vehicle insurance law where it is licensed "pollutants" that are needed for or result from or principally garaged. the normal electrical, hydraulic or mechanical However, "auto" does not include "mobile equip- functioning of the covered "auto" or its parts, if: ment". (1) The "pollutants" escape, seep, migrate, C. "Bodily injury" means bodily injury, sickness or or are discharged, dispersed or released disease sustained by a person including death re- directly from an "auto" part designed by sulting from any of these. its manufacturer to hold, store, receive D. "Covered pollution cost or expense" means any or dispose of such "pollutants"; and cost or expense arising out of: (2) The "bodily injury", "property damage" or "covered pollution cost or expense" does 1. Any request, demand, order or statutory or not arise out of the operation of any regulatory requirement that any "insured" or equipment listed in Paragraph 6.b. or others test for, monitor, clean up, remove, con- 6.c. of the definition of "mobile equip- tain, treat, detoxify or neutralize, or in any way ment". respond to, or assess the effects of "pollut- ants"; or Paragraphs b. and c. above do not apply to "accidents" that occur away from premises 2. Any claim or "suit" by or on behalf of a gov- owned by or rented to an "insured"with respect ernmental authority for damages because of to "pollutants" not in or upon a covered "auto" testing for, monitoring, cleaning up, removing, if: containing, treating, detoxifying or neutralizing or in any way responding to or assessing the (1) The pollutants or any property in which effects of"pollutants". the "pollutants" are contained are upset, overturned or damaged as a result of "Covered pollution cost or expense" does not in- the maintenance or use of a covered clude any cost or expense arising out of the ac- "auto and tual, alleged or threatened discharge, dispersal seepage, migration, release or escape of "pollut_ (2) The discharge, dispersal, seepage, mi- ants": gration, release or escape of the "pollut- ants" is caused directly by such upset, a. That are, or that are contained in any prop- overturn or damage. erty that is: E. "Diminution in value" means the actual or per- (1) Being transported or towed by, handled, ceived loss in market value or resale value which or handled for movement into, onto or results from a direct and accidental "loss". from the covered "auto"; F. "Employee" includes a "leased worker". "Em- (2) Otherwise in the course of transit by or ployee" does not include a "temporary worker". on behalf of the "insured-, G. "Insured" means any person or organization quali- (3) Being stored, disposed of, treated or fying as an insured in the Who Is An Insured pro- processed in or upon the covered vision of the applicable coverage. Except with re- "auto"; spect to the Limit of Insurance, the coverage af- b. Before the "pollutants" or any property in forded applies separately to each insured who is which the "pollutants" are contained are seeking coverage or against whom a claim or moved from the place where they are ac- "suit" is brought. cepted by the "insured" for movement into H. "Insured contract" means: or onto the covered "auto"; or c. After the "pollutants" or any property in 1. A lease of premises which the "pollutants" are contained are 2. A sidetrack agreement; moved from the covered "auto" to the place 3. Any easement or license agreement, except in where they are finally delivered, disposed of connection with construction or demolition op- or abandoned by the "insured". erations on or within 50 feet of a railroad; Page 10 of 12 C ISO Properties, Inc., 2005 CA 00 01 03 06 ❑ 4. An obligation, as required by ordinance, to in- 3. Vehicles that travel on crawler treads; demnify a municipality, except in connection 4. Vehicles, whether self-propelled or not, main- with work for a municipality; tained primarily to provide mobility to perma- 5. That part of any other contract or agreement nently mounted: pertaining to your business (including an in- a. Power cranes, shovels, loaders, diggers or demnification of a municipality in connection drills; or with work performed for a municipality) under which you assume the tort liability of another to b. Road construction or resurfacing equipment pay for "bodily injury" or"property damage"to a such as graders, scrapers or rollers. third party or organization. Tort liability means a 5. Vehicles not described in Paragraph 1., 2., 3., liability that would be imposed by law in the or 4. above that are not self-propelled and are absence of any contract or agreement; maintained primarily to provide mobility to per- 6. That part of any contract or agreement entered manently attached equipment of the following into, as part of your business, pertaining to the types: rental or lease, by you or any of your "employ- a. Air compressors, pumps and generators, ees", of any "auto". However, such contract or including spraying, welding, building clean- agreement shall not be considered an "insured ing, geophysical exploration, lighting and contract" to the extent that it obligates you or well servicing equipment; or any of your "employees" to pay for "property b. Cherry pickers and similar devices used to damage" to any "auto" rented or leased by you raise or lower workers. or any of your"employees". An "insured contract" does not include that part of 6. Vehicles not described in Paragraph 1., 2., 3. any contract or agreement: or 4. above maintained primarily for purposes other than the transportation of persons or a. That indemnifies a railroad for"bodily injury" cargo. However, self-propelled vehicles with the or "property damage" arising out of con- following types of permanently attached struction or demolition operations, within 50 equipment are not "mobile equipment" but will feet of any railroad property and affecting be considered "autos": any railroad bridge or trestle, tracks, road- a. Equipment designed primarily for: beds, tunnel, underpass or crossing; or b. That pertains to the loan, lease or rental of (1) Snow removal; an "auto" to you or any of your"employees", (2) Road maintenance, but not construction if the "auto" is loaned, leased or rented with or resurfacing; or a driver; or (3) Street cleaning; c. That holds a person or organization en- b. Cherry pickers and similar devices mounted gaged in the business of transporting prop- on automobile or truck chassis and used to erty by "auto" for hire harmless for your use raise or lower workers; and of a covered "auto" over a route or territory c. Air compressors, pumps and generators, that person or organization is authorized to including spraying, welding, building clean- serve by public authority. ing, geophysical exploration, lighting or well I. "Leased worker" means a person leased to you by servicing equipment. a labor leasing firm under an agreement between However, "mobile equipment" does not include you and the labor leasing firm, to perform duties land vehicles that are subject to a compulsory or related to the conduct of your business. "Leased financial responsibility law or other motor vehicle worker" does not include a "temporary worker". insurance law where it is licensed or principally ga- J. "Loss" means direct and accidental loss or dam- raged. Land vehicles subject to a compulsory or age. financial responsibility law or other motor vehicle K. "Mobile equipment" means any of the following insurance law are considered "autos". types of land vehicles, including any attached ma- L. "Pollutants" means any solid, liquid, gaseous or chinery or equipment: thermal irritant or contaminant, including smoke, 1. Bulldozers, farm machinery, forklifts and other vapor, soot, fumes, acids, alkalis, chemicals and vehicles designed for use principally off public waste. Waste includes materials to be recycled, roads; reconditioned or reclaimed. 2. Vehicles maintained for use solely on or next to M. "Property damage" means damage to or loss of premises you own or rent, use of tangible property. CA 00 01 03 06 C ISO Properties, Inc., 2005 Page 11 of 12 ❑ N. "Suit" means a civil proceeding in which: b. Any other alternative dispute resolution pro- 1. Damages because of "bodily injury" or "prop- ceeding in which such damages or "cov- erty damage"; or ered pollution costs or expenses" are claimed and to which the insured submits 2. A "covered pollution cost or expense", with our consent. to which this insurance applies, are alleged. O. 'Temporary worker" means a person who is fur- "Suit" includes: nished to you to substitute for a permanent "em- a. An arbitration proceeding in which such ployee" on leave or to meet seasonal or short-term damages or "covered pollution costs or ex- workload conditions. penses" are claimed and to which the "in- P. 'Trailer" includes semitrailer. sured" must submit or does submit with our consent; or Page 12 of 12 © ISO Properties, Inc., 2005 CA 00 01 03 06 ❑ IL 00 17 11 98 COMMON POLICY CONDITIONS All Coverage Parts included in this policy are subject to the following conditions. A. Cancellation b. Give you reports on the conditions we find; 1. The first Named Insured shown in the Declara- and tions may cancel this policy by mailing or deliv- c. Recommend changes. ering to us advance written notice of cancella- 2. We are not obligated to make any inspections, tion. surveys, reports or recommendations and any 2. We may cancel this policy by mailing or deliver- such actions we do undertake relate only to fin- ing to the first Named Insured written notice of surability and the premiums to be charged. We cancellation at least: do not make safety inspections. We do not un- a. 10 days before the effective date of cancel- dertake to perform the duty of any person or lation if we cancel for nonpayment of pre- organization to provide for the health or safety mium; or of workers or the public. And we do not warrant that conditions: b. 30 days before the effective date of cancel- lation if we cancel for any other reason. a. Are safe or healthful; or 3. We will mail or deliver our notice to the first b. Comply with laws, regulations, codes or Named Insured's last mailing address known standards. to us. 3. Paragraphs 1. and 2. of this condition apply 4. Notice of cancellation will state the effective not only to us, but also to any rating, advisory, date of cancellation. The policy period will end rate service or similar organization which on that date. makes insurance inspections, surveys, reports or recommendations. 5. If this policy is cancelled, we will send the first Named Insured any premium refund due. If we 4. Paragraph 2. of this condition does not apply to cancel, the refund will be pro rata. If the first any inspections, surveys, reports or recom- Named Insured cancels, the refund may be mendations we may make relative to certifica- less than pro rata. The cancellation will be ef- tion, under state or municipal statutes, ordi- fective even if we have not made or offered a nances or regulations, of boilers, pressure ves- refund. sels or elevators. 6. If notice is mailed, proof of mailing will be suffi- E. Premiums cient proof of notice. The first Named Insured shown in the Declara- B. Changes tions: This policy contains all the agreements between 1. Is responsible for the payment of all premiums; you and us concerning the insurance afforded. and The first Named Insured shown in the Declarations 2. Will be the payee for any return premiums we is authorized to make changes in the terms of this pay. policy with our consent. This policy's terms can be F. Transfer Of Your Rights And Duties Under This amended or waived only by endorsement issued Policy by us and made a part of this policy. Your rights and duties under this policy may not C. Examination Of Your Books And Records be transferred without our written consent except We may examine and audit your books and re- in the case of death of an individual named in- cords as they relate to this policy at any time dur- sured. ing the policy period and up to three years after- If you die, your rights and duties will be transferred ward. to your legal representative but only while acting D. Inspections And Surveys within the scope of duties as your legal represen- 1. We have the right to: tative. Until your legal representative is appointed, anyone having proper temporary custody of your a. Make inspections and surveys at any time; property will have your rights and duties but only with respect to that property. IL 00 17 11 98 Copyright, Insurance Services Office, Inc., 1998 Page 1 of 1 ❑ IL 00 21 09 08 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. NUCLEAR ENERGY LIABILITY EXCLUSION ENDORSEMENT (Broad Form) This endorsement modifies insurance provided under the following: COMMERCIAL AUTOMOBILE COVERAGE PART COMMERCIAL GENERAL LIABILITY COVERAGE PART FARM COVERAGE PART LIQUOR LIABILITY COVERAGE PART MEDICAL PROFESSIONAL LIABILITY COVERAGE PART OWNERS AND CONTRACTORS PROTECTIVE LIABILITY COVERAGE PART POLLUTION LIABILITY COVERAGE PART PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART RAILROAD PROTECTIVE LIABILITY COVERAGE PART UNDERGROUND STORAGE TANK POLICY 1. The insurance does not apply: C. Under any Liability Coverage, to "bodily injury" A. Under any Liability Coverage, to "bodily injury" or "property damage" resulting from "hazard- or"property damage": ous properties" of"nuclear material", if: (1) With respect to which an "insured" under (1) The "nuclear material" (a) is at any "nuclear the policy is also an insured under a nucle- facility" owned by, or operated by or on be- ar energy liability policy issued by Nuclear half of, an "insured" or (b) has been dis- Energy Liability Insurance Association, Mu- charged or dispersed therefrom; tual Atomic Energy Liability Underwriters, (2) The "nuclear material" is contained in Nuclear Insurance Association of Canada "spent fuel" or "waste" at any time pos- or any of their successors, or would be an sessed, handled, used, processed, stored, insured under any such policy but for its transported or disposed of, by or on behalf termination upon exhaustion of its limit of Ii- of an "insured"; or ability; or (3) The "bodily injury" or "property damage" (2) Resulting from the "hazardous properties" arises out of the furnishing by an "insured" of "nuclear material" and with respect to of services, materials, parts or equipment in which (a) any person or organization is re- connection with the planning, construction, quired to maintain financial protection pur- maintenance, operation or use of any "nu- suant to the Atomic Energy Act of 1954, or clear facility", but if such facility is located any law amendatory thereof, or (b) the "in- within the United States of America, its terri- sured" is, or had this policy not been issued tories or possessions or Canada, this ex- would be, entitled to indemnity from the clusion (3) applies only to "property dam- United States of America, or any agency age" to such "nuclear facility" and any thereof, under any agreement entered into property thereat. by the United States of America, or any 2. As used in this endorsement: agency thereof, with any person or organi- zation. "Hazardous properties" includes radioactive toxic B. Under an Medical Payments coverage, to or explosive properties. y y l ' "Nuclear material" means "source material" "spe- expenses incurred with respect to "bodily inju- ry" resulting from the "hazardous properties" of cial nuclear material" or"by-product material". "nuclear material" and arising out of the opera- tion of a "nuclear facility" by any person or or- ganization. IL 00 21 09 08 © ISO Properties, Inc., 2007 Page 1 of 2 13 "Source material", "special nuclear material", and (c) Any equipment or device used for the pro- "by-product material" have the meanings given cessing, fabricating or alloying of "special them in the Atomic Energy Act of 1954 or in any nuclear material" if at any time the total law amendatory thereof. amount of such material in the custody of "Spent fuel" means any fuel element or fuel com- the "insured" at the premises where such ponent, solid or liquid, which has been used or ex- equipment or device is located consists of posed to radiation in a "nuclear reactor". or contains more than 25 grams of plutoni- um or uranium 233 or any combination "Waste" means any waste material (a) containing thereof, or more than 250 grams of uranium "by-product material" other than the tailings or 235; wastes produced by the extraction or concentra- tion of uranium or thorium from any ore processed (d) Any structure, basin, excavation, premises primarily for its "source material" content and (b) place prepared or used for the storage or di resulting from the operation by any person or or- ganization disposal of any "nuclear facility" included under and includes the site on which any of the foregoing the first two paragraphs of the definition of"nucle- is located, all operations conducted on such site ar facility". and all premises used for such operations. "Nuclear facility" means: "Nuclear reactor" means any apparatus designed (a) Any"nuclear reactor"; or used to sustain nuclear fission in a self- supporting chain reaction or to contain a critical (b) Any equipment or device designed or used mass of fissionable material. for (1) separating the isotopes of uranium or plutonium, (2) processing or utilizing "spent "Property damage" includes all forms of radioac- fuel", or (3) handling, processing or packag- tive contamination of property. ing "waste"; Page 2 of 2 © ISO Properties, Inc., 2007 IL 00 21 09 08 13 IL 02 68 01 11 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. NEW YORK CHANGES - CANCELLATION AND NONRENEWAL This endorsement modifies insurance provided under the following: CAPITAL ASSETS PROGRAM (OUTPUT POLICY) COVERAGE PART COMMERCIAL GENERAL LIABILITY COVERAGE PART COMMERCIAL INLAND MARINE COVERAGE PART COMMERCIAL PROPERTY COVERAGE PART CRIME AND FIDELITY COVERAGE PART EQUIPMENT BREAKDOWN COVERAGE PART FARM COVERAGE PART LIQUOR LIABILITY COVERAGE PART PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART A. Paragraphs 1., 2., 3. and 6. of the Cancellation (d) After issuance of the policy or after Common Policy Condition are replaced by the the last renewal date, discovery of following: an act or omission, or a violation of 1. The first Named Insured shown in the any policy condition, that Declarations may cancel this entire policy by substantially and materially mailing or delivering to us advance written increases the hazard insured notice of cancellation. against, and that occurred subsequent to inception of the 2. Cancellation Of Policies In Effect current policy period; a. 60 Days Or Less (e) Material physical change in the We may cancel this policy by mailing or property insured, occurring after delivering to the first Named Insured written issuance or last annual renewal notice of cancellation at least: anniversary date of the policy, that (1) 30 days before the effective date of results in the property becoming cancellation if we cancel for any reason uninsurable in accordance with our not included in Paragraph A.2.a.(2) objective, uniformly applied below. underwriting standards in effect at the time the policy was issued or last (2) 15 days before the effective date of renewed; or material change in the cancellation if we cancel for any of the nature or extent of the risk, occurring following reasons: after issuance or last annual renewal (a) Nonpayment of premium, provided anniversary date of the policy, that however, that a notice of cancellation causes the risk of loss to be on this ground shall inform the first substantially and materially Named Insured of the amount due; increased beyond that contemplated (b) Conviction of a crime arising out of at the time the policy was issued or acts increasing the hazard insured last renewed; against, (f) Required pursuant to a (c) Discovery of fraud or material determination by the Superintendent misrepresentation in the obtaining of that continuation of our present the policy or in the presentation of a premium volume would jeopardize claim; our solvency or be hazardous to the interest of our policyholders, our creditors or the public; IL 02 68 01 11 © Insurance Services Office, Inc., 2010 Page 1 of 6 13 (g) A determination by the B. The following is added to the Cancellation Superintendent that the continuation Common Policy Condition: of the policy would violate, or would 7. If one of the reasons for cancellation in place us in violation of, any provision Paragraph A.2.a.(2) or D.2.b.(2) exists, we of the Insurance Code; or may cancel this entire policy, even if the (h) Where we have reason to believe, in reason for cancellation pertains only to a new good faith and with sufficient cause, coverage or endorsement initially effective that there is a probable risk of subsequent to the original issuance of this danger that the insured will destroy, policy. or permit to be destroyed, the C. The following conditions are added: insured property for the purpose of collecting the insurance proceeds. If 1. Nonrenewal we cancel for this reason, you may If we decide not to renew this policy we will make a written request to the send notice as provided in Paragraph C.3. Insurance Department, within 10 below. days of receipt of this notice, to 2. Conditional Renewal review our cancellation decision. Also, we will simultaneously send a If we conditionally renew this policy subject to: copy of this cancellation notice to the a. A change of limits, Insurance Department. b. A change in type of coverage; b. For More Than 60 Days c. A reduction of coverage; If this policy has been in effect for more d. An increased deductible; than 60 days, or if this policy is a renewal or continuation of a policy we issued, we may e. An addition of exclusion; or cancel only for any of the reasons listed in f. Increased premiums in excess of 10%, Paragraph A.2.a.(2) above, provided: exclusive of any premium increase due to (1) We mail the first Named Insured written and commensurate with insured value notice at least 15 days before the added or increased exposure units; or as a effective date of cancellation; and result of experience rating, loss rating, (2) If we cancel for nonpayment of retrospective rating or audit; premium, our notice of cancellation we will send notice as provided in Paragraph informs the first Named Insured of the C.3. below. amount due. 3. Notices Of Nonrenewal And Conditional 3. We will mail or deliver our notice, including the Renewal reason for cancellation, to the first Named a. If we decide not to renew this policy or to Insured at the address shown in the policy and conditionally renew this policy as provided to the authorized agent or broker. in Paragraphs C.1. and C.2. above, we will 6. If this policy is cancelled, we will send the first mail or deliver written notice to the first Named Insured any premium refund due. If we Named Insured shown in the Declarations cancel, the refund will be pro rata. If the first at least 60 but not more than 120 days Named Insured cancels, the refund may be before: less than pro rata. (1) The expiration date, or However, when the premium is advanced (2) The anniversary date if this is a under a premium finance agreement, the continuous policy. cancellation refund will be pro rata. Under such financed policies, we will be entitled to retain a b. Notice will be mailed or delivered to the first minimum earned premium of 10% of the total Named Insured at the address shown in the policy premium or $60, whichever is greater. policy and to the authorized agent or The cancellation will be effective even if we broker. If notice is mailed, proof of mailing have not made or offered a refund. will be sufficient proof of notice. Page 2 of 6 © Insurance Services Office, Inc., 2010 IL 02 68 01 11 13 c. Notice will include the specific reason(s) for D. The following provisions apply when the nonrenewal or conditional renewal, Commercial Property Coverage Part, the Farm including the amount of any premium Coverage Part or the Capital Assets Program increase for conditional renewal and (Output Policy) Coverage Part is made a part of description of any other changes. this policy: d. If we violate any of the provisions of 1. Items D.2. and D.3. apply if this policy meets Paragraph C.3.a., b. or c. above by sending the following conditions: the first Named Insured an incomplete or a. The policy is issued or issued for delivery in late conditional renewal notice or a late New York State covering property located nonrenewal notice: in this state; and (1) And if notice is provided prior to the b. The policy insures: expiration date of this policy, coverage will remain in effect at the same terms (1) For loss of or damage to structures, and conditions of this policy at the lower other than hotels or motels, used of the current rates or the prior period's predominantly for residential purposes rates until 60 days after such notice is and consisting of no more than four mailed or delivered, unless the first dwelling units; or Named Insured, during this 60-day (2) For loss of or damage to personal period, has replaced the coverage or property other than farm personal elects to cancel; property or business property; or (2) And if the notice is provided on or after (3) Against damages arising from liability for the expiration date of this policy, loss of, damage to or injury to persons coverage will remain in effect at the or property, except liability arising from same terms and conditions of this policy business or farming; and for another policy period, at the lower of c. The portion of the annual premium the current rates or the prior period's attributable to the property and rates, unless the first Named Insured, contingencies described in 1.b. exceeds the during this additional policy period, has portion applicable to other property and replaced the coverage or elects to contingencies. cancel. e. If you elect to renew on the basis of a late 2. Paragraph 2. of the Cancellation Common conditional renewal notice, the terms, Policy Condition is replaced by the following: conditions and rates set forth in such notice 2. Procedure And Reasons For shall apply: Cancellation (1) Upon expiration of the 60-day period, a. We may cancel this entire policy by unless Subparagraph (2) below applies, mailing or delivering to the first Named or Insured written notice of cancellation at (2) Notwithstanding the provisions in least: Paragraphs d.(1) and d.(2), as of the (1) 15 days before the effective date of renewal date of the policy if the cancellation if we cancel for conditional renewal notice was sent at nonpayment of premium, provided least 30 days prior to the expiration or however, that a notice of cancellation anniversary date of the policy. on this ground shall inform the first f. We will not send you notice of nonrenewal Named Insured of the amount due; or conditional renewal if you, your or authorized agent or broker or another (2) 30 days before the effective date of insurer of yours mails or delivers notice that cancellation if we cancel for any the policy has been replaced or is no longer other reason. desired. b. But if this policy: (1) Has been in effect for more than 60 days; or IL 02 68 01 11 © Insurance Services Office, Inc., 2010 Page 3 of 6 13 (2) Is a renewal of a policy we issued; b. Nonrenewal we may cancel this policy only for one or If, as allowed by the laws of New York more of the following reasons: State, we: (1) Nonpayment of premium, provided (1) Do not renew this policy; or however, that a notice of cancellation (2) Condition policy renewal upon: on this ground shall inform the first Named Insured of the amount due; (a) Change of limits; or (2) Conviction of a crime arising out of (b) Elimination of coverage; acts increasing the risk of loss; we will mail or deliver written notice of (3) Discovery of fraud or material nonrenewal or conditional renewal: misrepresentation in obtaining the (a) At least 45 days; but policy or in making a claim; (b) Not more than 60 days; (4) Discovery of willful or reckless acts before the expiration date of the policy. We or omissions increasing the risk of will mail or deliver our notice to the first loss; Named Insured's last mailing address (5) Physical changes in the covered known to us. If notice is mailed, proof of property that make that property mailing will be sufficient proof of notice. uninsurable in accordance with our Delivery of the notice will be the same as objective and uniformly applied mailing. underwriting standards in effect E. The following is added to the Farm Property — when we: Other Farm Provisions Form — Additional (a) Issued the policy; or Coverages, Conditions, Definitions, the (b) Last voluntarily renewed the Commercial Property Coverage Part and the policy; Capital Assets Program (Output Policy) Coverage (6) The Superintendent of Insurance's Part: determination that continuing the When the property is subject to the Anti-arson policy would violate Chapter 28 of Application in accordance with New York the Insurance Law; or Insurance Department Regulation No. 96, the following provisions are added: (7) Required pursuant to a determination by the Superintendent If you fail to return the completed, signed and of Insurance that the continuation of affirmed anti-arson application to us: our present premium volume would 1. Or our broker or agent within 45 days of the be hazardous to the interests of our effective date of a new policy, we will cancel policyholders, our creditors or the the entire policy by giving 20 days' written public. notice to you and to the mortgageholder shown 3. The following are added: in the Declarations. a. Conditional Continuation 2. Before the expiration date of any policy, we will cancel the policy by giving written notice to you Instead of cancelling this policy, we may and to the mortgageholder shown in the continue it on the condition that: Declarations at least 15 days before the (1) The policy limits be changed; or effective date of cancellation. (2) Any coverage not required by law be The cancellation provisions set forth in E.1. and eliminated. E.2. above supersede any contrary provisions in If this policy is conditionally continued, we this policy including this endorsement. will mail or deliver to the first Named If the notice in E.1. or E.2. above is mailed, proof Insured written notice at least 20 days of mailing will be sufficient proof of notice. Delivery before the effective date of the change or of the notice will be the same as mailing. elimination. We will mail or deliver our notice to the first Named Insured's last mailing address known to us. If notice is mailed, proof of mailing will be sufficient proof of notice. Delivery of the notice will be the same as mailing. Page 4 of 6 C Insurance Services Office, Inc., 2010 IL 02 68 01 11 13 F. The following applies to the Commercial Property (2) If you elect not to renew this policy, we Coverage Part, the Farm Coverage Part and the will give written notice to the Capital Assets Program (Output Policy) Coverage mortgageholder. With respect to the Part: mortgageholder's interest only, Paragraphs f. and g. of the Mortgageholders nonrenewal will become effective on the Condition are replaced by the following: later of: f. Cancellation (a) The expiration date of the policy; or (1) If we cancel this policy, we will give (b) 10 days after we give notice to the written notice to the mortgageholder at mortgageholder. least: G. The following provisions apply when the following (a) 10 days before the effective date of are made a part of this policy: cancellation if we cancel for your Commercial General Liability Coverage Part nonpayment of premium; or Employment-Related Practices Liability Coverage (b) 30 days before the effective date of Part cancellation if we cancel for any Farm Liability Coverage Form other reason. Liquor Liability Coverage Part (2) If you cancel this policy, we will give Products/Completed Operations Liability Coverage written notice to the mortgageholder. Part With respect to the mortgageholder's 1. The aggregate limits of this policy as shown in interest only, cancellation will become the Declarations will be increased in proportion effective on the later of: to any policy extension provided in accordance (a) The effective date of cancellation of with Paragraph C.3.d. above. the insured's coverage; or 2. The last sentence of Limits Of Insurance does (b) 10 days after we give notice to the not apply when the policy period is extended mortgageholder. because we sent the first Named Insured an g. Nonrenewal incomplete or late conditional renewal notice or a late nonrenewal notice. (1) If we elect not to renew this policy, we will give written notice to the mortgageholder at least 10 days before the expiration date of this policy. IL 02 68 01 11 © Insurance Services Office, Inc., 2010 Page 5 of 6 13 FNIF Governmental Services, Inc. A division of NIF Group, Inc. Toll Free: 1-800-691-5903 x 21 103 Spring Valley Rd. Phone: (201)391-5900 x21 Montvale,NJ 07645 Fax: (201)391-5959 tkaprowski@nifgroup.com 1 PAG E Re: CLAIMS HANDLING PROCEDURES Effective Friday, 03126110, NIF Governmental Services in concert with QBE and Berkley Risk Administrators (BRAC) is modifying its claims servicing procedures. Claims will be reported by you directly to BRAC, and no longer to NIF. Your reporting options are: E-mail BRACIAgeneral berkleyrisk.com Fax 712-329-3812 Mail Berkley Risk Administrators, Inc. 300 West Broadway, suite 1600 Council Buffs IA 51502 P.O. Box 4017 Council Bluffs, Iowa 51502-4017 After hours and weekend claim reports can be called in to 800-832-0137. BE SURE TO IDENTIFY EACH CLAIM AS " NIF" BRAC will keep NIF informed of all reported claims. Please allow 48 to 72 hours for new file set-up confirmation, except for emergency reports. Status reports and general inquiries will be made directly to BRAC's customer service staff 1 800 832 0137 Requests for loss runs for renewals will continue to be addressed to NIF. By adopting these procedures we anticipate that claims handling for our producers and insureds will be more efficient and more informative. Need to request a Boiler and/or Pressure Vessel Inspection? Have a technical question regarding your equipment? Boiler & Pressure vessel inspections will be conducted by Hartford Steam Boiler Inspection and Insurance Company personnel. Contact the Hartford Steam Boiler - r Inspection Hotline Telephone: 1-800-333-INSP Fax: 1-484-582-1838 49.4 E-Mail: NSCINSP_HOTLINL*hsb.com Inspections will be scheduled promptly! POLICY NUMBER: H633-000095-06 INTERLINE QBIL-0121 (01-08) THIS ENDORSEMENT IS ATTACHED TO AND MADE PART OF YOUR POLICY IN RESPONSE TO THE DISCLOSURE REQUIREMENTS OF THE TERRORISM RISK INSURANCE ACT. THIS ENDORSEMENT DOES NOT GRANT ANY COVERAGE OR CHANGE THE TERMS AND CONDITIONS OF ANY COVERAGE UNDER THE POLICY. DISCLOSURE PURSUANT TO TERRORISM RISK INSURANCE ACT ❑ This policy includes coverage for Certified Acts of Terrorism. Please refer to the applicable charge(s) below. ❑ This policy excludes coverage for Certified Acts of Terrorism. Note: Applicable to Commercial Property and Commercial Inland Marine Standard fire policy states mandate coverage for ensuing fire losses. If this policy is issued in a standard fire policy state, coverage for fire losses resulting from an act of terrorism is provided for Commercial Property and in some states for Commercial Inland Marine. The additional premium for such fire coverage is mandatory in these states and is shown below. SCHEDULE THIS POLICY CONSISTS OF THE FOLLOWING CHARGES FOR CERTIFIED ACTS OF TERRORISM PREMIUM Terrorism (Fire Following) —Commercial Property $ Terrorism (Fire Following) —Commercial Inland Marine $ Terrorism (Other than Fire Following) $ 611.00 TOTAL TERRORISM PREMIUM (CERTIFIED ACTS): $ This premium is the total Certified Acts premium attributable to the following Coverage Part(s), Coverage Form(s) and/or Policy(s): Additional information, if any, concerning the terrorism premium: NOTE: The premium above is for certain losses resulting from certified acts of terrorism as covered pursuant to coverage provisions, limitations and exclusions in this policy. You should read the defini- tion in your policy carefully, but generally speaking, "certified" acts of terrorism are acts that exceed $5 million in aggregate losses to the insurance industry and which are subsequently declared by the U.S. Secretary of the Treasury as a certified terrorist act under the Terrorism Risk Insurance Act. Some loss- es resulting from certified acts of terrorism are not covered. Read your policy and endorsements care- fully. Includes copyrighted material of Insurance Services Office, Inc., with its permission QBIL-0121 (01-08) Page 1 of 2 ❑ A. Disclosure Of Premium C. Cap On Insurer Participation In Payment In accordance with the federal Terrorism Risk Of Terrorism Losses Insurance Act, we are required to provide you If aggregate insured losses attributable to ter- with a notice disclosing the portion of your rorist acts certified under the Terrorism Risk premium, if any, attributable to coverage for Insurance Act exceed $100 billion in a Pro- terrorist acts certified under the Terrorism Risk gram Year (January 1 through December 31) Insurance Act. The portion of your premium and we have met our insurer deductible under attributable to such coverage is shown in the the Terrorism Risk Insurance Act, we shall not Schedule of this endorsement or in the policy be liable for the payment of any portions of the Declarations. amount of such losses that exceeds $100 bil- B. Disclosure Of Federal Participation In lion, and in such case insured losses up to Payment Of Terrorism Losses that amount are subject to pro rata allocation The United States Government, Department in accordance with procedures established by of the Treasury, will pay a share of terrorism the Secretary of the Treasury. losses insured under the federal program. The federal share equals 85% of that portion of the amount of such insured losses that exceeds the applicable insurer retention. However, if aggregate insured losses attributable to terror- ist acts certified under the Terrorism Risk In- surance Act exceed $100 billion in a Program Year (January 1 through December 31), the Treasury shall not make any payment for any portion of the amount of such losses that ex- ceeds $100 billion. Includes copyrighted material of Insurance Services Office, Inc., with its permission QBIL-0121 (01-08) Page 2 of 2 Praetorian Insurance Company A Stock Company trEl QBE Commercial Lines Policy Home Office: Administrative Office: Servicing Office: c/o CT Corporation System 88 Pine Street 500 Park Boulevard, Suite 1350 116 Pine Street, Suite 320 Wall Street Plaza Itasca, Illinois 60143 Harrisburg, Pennsylvania 17101 New York, New York 10005 (800) 773-9980 PICI JACKET (09-10) Page 1 of 2 This policy consists of: Declarations Common Policy Conditions One or more coverage parts. A coverage part consists of: —One or more coverage forms —Applicable forms and endorsements Praetorian Insurance Company In Witness Whereof, we have caused this policy to be executed and attested, and, if required by state law, this policy shall not be valid unless countersigned by our authorized representative. Robert D. Byler Peter T. Maloney President Secretary PICI JACKET (09-10) Page 2 of 2