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Home My Public Portal About2001 VKB-Coregis Insurance Company.tifM A Risk Management Associates VILLAGE OF KEY BISCAYNE TABLE OF CONTENTS Renewal Endorsement Certificate I Common Policy Forms and Endorsements 1 Property 3 General Liability/Law Enforcement Liability 4 Employee Benefits Liability Automobile Liability 5 6 Package Policy Forms 7 Public Officials Liability 8 COHE A GE Capital Company PRODUCER# UG 62140 POLICY # 651-011234 NAMED VILLAGE OF KEY BISCAYNE INSURED 85 West McIntyre Street Key Biscayne, FL 33149 PRODUCER PROGRAM MANAGEMENT SERVICES 8211 West Broward , Suite 460 Plantation, FL 33324 Register at www.coregis.com to access loss prevention information, report claims, check claim status and order loss runs! RENEWAL CERTIFICATE (This certificate becomes a part of and should he attached to the original policy.) COMPANY Coregis Insurance Company HOME OFFIC I. • 181 West Madison • ( ht.aco Illtnotti 0(1002 Renewal Premium $ 131,358 In consideration of the renewal premium stated above, FEMPA S 4.00 F1.. State Fire Marshall S 27.00 Policy No. 651-011234 issued to the above -named Insured is renewed for the period from 10/01/2001 to 10/01/2002 subject to the terms and (inception mo day - }i ) (cvpiration mo day ym conditions thereof except as follows Per the attached Geneial Change Endoisement, Form No. (\( IA 1000 ( 1U 07) All other terms, conditions and exclusions of this policy remain unchanged Michael J. Gill Chairman, President & Chief Executive Officer ('SPDK 1002 10/07 COREGIS A GE Capital Company ENDORSEMENT COUNTERSIGNATURE ENDORSEMENT This endorsement ,effective 10/01/01 12:01 A.M. forms a part of Policy No 651-011234 issued to VILLAGE OF KEY BISCAYNE by COREGIS INSURANCE COMPANY STATE STATE PREMIUM: $ 131,358 FL It is agreed that the signature appearing on this endorsement is the signature of a person duly authorized to countersign On behalf of the Company in the state designated above and which is appended hereon in conformity with the insurance laws of that state. LWB7g (10/74) Countersigned by FM 400.0.24(5/96) Authorized Representative colliErs A GE Capital Company ENDORSEMENT THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. NAMED WINDSTORM DEDUCTIBLE ENDORSEMENT This endorsement modifies insurance provided under the following: SCHOOLS PACKAGE POLICY - PART I MUNICIPALITIES PACKAGE POLICY - PART I SCHOOLS PROPERTY POLICY MUNICIPALITIES PROPERTY POLICY If loss or damage to Covered Property is caused by or results from Wind or Windstorm, the following Deductible Clause will replace the Deductibles Provision of your Policy and the Per Occurrence Deductible shown in the Declarations. NAMED WINDSTORM OCCURRENCE DEDUCTIBLE 2% Will be deducted from the claim for loss or damage caused by a "windstorm occurrence" that has been given a name by the National Weather Service or the National Hurricane Center. All insured property damaged or destroyed in the same named "windstorm occurrence" will be subject to this one Named Windstorm Occurrence Deductible; or Of the value of the damaged or destroyed property will be deducted from the claim for loss or damage in any one "windstorm occurrence" that has been given a name by the National Weather Service or the National Hurricane Center subject to the Named Percentage Windstorm Occurrence Deductible Schedule below This one deductible percentage will be applied to the sum of the values of all insured property damaged or destroyed in the same named "windstorm occurrence." NAMED PERCENTAGE WINDSTORM OCCURRENCE DEDUCTIBLE SCHEDULE When a Named Percentage Windstorm Occurrence Deductible is indicated above, either of the following conditions will apply: 1. The Named Percentage Windstorm Occurrence Deductible indicated will apply, but the amount deducted from the claim will not be less than $ 1,000 per named "windstorm occurrence;" or 2. The Named Percentage Windstorm Occurrence Deductible indicated will apply, but the amount deducted from the claim will not be: CXPEP.1006 10/97 Page 1 of 2 a. Less than $ per named "windstorm occurrence," nor b. More than $ per named "windstorm occurrence." WINDSTORM OCCURRENCE DEFINITION A Windstorm Occurrence shall mean all damage caused by the same storm event no matter how much insured property are involved in the event. The same storm event shall include the main windstorm plus all hail, rain, snow, sleet, tornadoes, lightning or similar related weather phenomenon caused by or related to the main windstorm which occur during a period of 72 consecutive hours CXPEP.1006 10/97 Page 2 of 2 CORES. A GE Capital Company ENDORSEMENT THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. EQUIPMENT BREAKDOWN COVERAGE ENDORSEMENT This endorsement modifies insurance provided under the following: SCHOOLS PACKAGE POLICY-- PART I PROPERTY COVERAGE PART MUNICIPALITIES PACKAGE POLICY-- PART I PROPERTY COVERAGE PART SCHOOLS PROPERTY POLICY MUNICIPALITIES PROPERTY POLICY The following is added to E. Special Property Coverages of the Property Coverage Part of your Policy Equipment Breakdown 1. We will pay for loss caused by or resulting from an "Accident" to "covered equipment " As used in this coverage, an "Accident" means direct physical loss as follows: a. Mechanical breakdown, including rupture or bursting caused by centrifugal force; b. Artificially generated electrical current, including electric arcing, that disturbs electrical devices, appliances or wires; c. Explosion of steam boilers, steam pipes, steam engines or steam turbines owned, leased, or operated by you or operated under your control; d. Loss of 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 of 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 Covered Property built to operate under vacuum or pressure, other than weight of contents, or used for the generation, transmission or utilization of energy. 2. The following coverages also apply to loss caused by or resulting from an "Accident" to "covered equipment." These coverages do not provide additional amounts of insurance a. Expediting Expenses With respect to your damaged Covered Property, we will pay up to $100,000 for the reasonable extra cost to: Includes copyrighted material of Insurance Services Office, Inc , with its permission. CXCEB.1000 09/98 Page 1 of 4 i Make temporary repairs; and ii Expedite permanent repairs or replacement. • b. Perishable Goods i We will pay for your loss of "perishable goods" due to spoilage. ii We will also pay for your loss 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 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 c. CFC Refrigerants We will pay for the additional cost to repair or replace Covered Property because of the use or presence of a refrigerant containing CFC (chlorinated fluorocarbon) substances. This means the additional expense to do the least expensive of the following: Repair the damaged property and replace any lost CFC refrigerant; ii Repair the damaged property, retrofit the system to accept a non-CFC refrigerant and charge the system with a non-CFC refrigerant; or iii Replace the system with one using a non-CFC refrigerant. Additional costs mean those beyond what would have been required had no CFC refrigerant been involved. The most we will pay for loss or damage under this coverage, including actual loss of Business Income you sustain, necessary Extra Expense you incur and loss under Perishable Goods coverage, is $100,000. d. Utility Interruption The insurance provided for Business Income and Extra Expense is extended to apply to loss caused by or resulting from an "Accident" to equipment that is owned by a utility, landlord, or other supplier with whom you have a contract to provide you with any of the following services: electrical power, communications, waste disposal, air conditioning, refrigeration, heating, gas, air, water or steam. Includes copyrighted material of Insurance Services Office, Inc., with its permission. CXCEB.1000 09/98 Page 2 of 4 3. Exclusions a. All exclusions and limitations apply except: i Excluded Risks of Direct Physical Loss J.2.a., J.2.d.(6) and J.2.e.; and ii Limitations to Covered Property H.1. and H.2. b. The following is added to Exclusion J.1.d.1: 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 of Insurance and Deductible. c. None of the following is "covered equipment:" i Structure, foundation, cabinet, compartment or air supported structure or building; ii Insulating or refractory material; iii Sewer piping, underground vessels or piping or piping forming a part of a sprinkler system; iv Water piping other than boiler feedwater piping, boiler condensate return piping or water piping forming a part of a refrigerating or air conditioning system; v Vehicle, watercraft, dragline, excavation, or construction equipment; vi Computer Equipment or Electronic Media, unless used to control or operate "covered equipment." d. We will not pay under this endorsement for loss or damage caused by or resulting from: i Your failure to use all reasonable means to protect the "perishable goods" from damage following an "Accident;" ii Any defect, virus, loss of data or other situation within Electronic Media. But if loss or damage from an "Accident" to "covered equipment" results, we will pay for that resulting loss or damage; iii Any of the following tests: a hydrostatic, pneumatic or gas pressure test of any boiler or pressure vessel; or an insulation breakdown test of any type of electrical equipment. e. With respect to Utility Interruption coverage, we will also not pay for loss or damage caused by or resulting from: fire; lightning; windstorm or hail; explosion (except for steam or centrifugal explosion); smoke; aircraft or vehicles; riot or civil commotion; vandalism; sprinkler leakage; falling objects; weight of snow, ice or sleet; freezing or collapse. 4. Conditions a. 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 Includes copyrighted material of Insurance Services Office, Inc., with its permission. CXCEB.1000 09/98 Page 3 of 4 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 written notice from us. If we suspend your insurance, you will get a pro rata refund of premium. But the suspension will be effective even if we have not yet made or offered a refund. b. 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. The most we will pay for loss or damage under this endorsement is the applicable Limit of Insurance shown in the Declarations. Coverage provided under this endorsement does not provide an additional amount of insurance. Includes copyrighted material of Insurance Services Office, Inc., with its permission. CXCEB.1000 09/98 Page 4 of 4 CORR A GE Capital Company ENDORSEMENT THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. AUTOMATIC ADDITIONAL INSUREDS This endorsement modifies insurance provided under the following: SCHOOLS PACKAGE POLICY - PART II MUNICIPALITIES PACKAGE POLICY - PART II SCHOOLS LIABILITY POLICY MUNICIPALITIES LIABILITY POLICY Where indicated by (x) below, coverage applies to the person(s) or organization(s) as their interest may appear. _X_ ADDITIONAL INSURED - BY CONTRACT, AGREEMENT OR PERMIT SECTION II - WHO IS AN INSURED is amended to include any person(s) or organization(s) (hereinafter called Additional Insured) with whom you agree in a written contract, agreement or permit to name as an insured, but only with respect to liability arising, in whole or in part, out of your operations, "your work" or facilities owned or used by you. The insurance afforded to the Additional Insured does not apply: (1) Unless the written contract, agreement or permit was executed prior to the "bodily injury," "property damage," "personal injury" or "advertising injury;" (2) To any person(s) or organization(s) included as an insured under this policy or by an endorsement made part of this policy. X ADDITIONAL INSURED - OWNERS OF LEASED EQUIPMENT SECTION II - WHO IS AN INSURED is amended to include any person(s) or organization(s) (hereinafter called Additional Insured) with whom you agree in a written equipment lease or rental agreement to name as an insured, but only with respect to liability arising, in whole or in part, out of the maintenance, operation or use of rented or leased equipment to you by such person(s) or organization(s) and only while such equipment is in the care, custody or control of the insured, or any employee or agent of the insured. The insurance afforded to the Additional Insured does not apply to: (1) "Bodily injury" or "property damage" occurring after you cease to lease or rent the equipment; (2) "Bodily injury" or "property damage" arising out of the sole negligence of the Additional Insured; Pane 1 of 2 (3) Structural alterations, new construction or demolition operations performed by or on behalf of the Additional Insured; (4) Liability assumed by the Additional Insured under any contract or agreement; (5) "Property damage" to: (a) Property owned, used, occupied by, or rented to the Additional Insured; (b) Property in the care, custody or control of the Additional Insured or its employees or agents, or of which the Additional Insured, its employees or agents are for any purpose exercising physical control. _X_ ADDITIONAL INSURED - MANAGERS OR LESSORS OF PREMISES SECTION II - WHO IS AN INSURED is amended to include any person(s) or organization(s) (hereinafter called Additional Insured) with whom you agree in a written or oral agreement to name as an insured, but only with respect to liability arising, in whole or in part, out of the "premises" leased to you by such person(s) or organization(s). The insurance afforded to the Additional Insured does not apply to: (1) "Bodily injury" or "property damage" occurring after you cease to be a tenant in that "premises;" (2) "Bodily injury" or "property damage" arising out of the sole negligence of the Additional Insured; (3) Structural alterations, new construction or demolition operations performed by or on behalf of the Additional Insured; (4) Liability assumed by the Additional Insured under any contract or agreement; (5) "Property damage" to: (a) Property owned, used, occupied by, or rented to the Additional Insured; (b) Property in the care, custody or control of the Additional Insured or its employees or agents, or of which the Additional Insured, its employees or agents are for any purpose exercising physical control. P.vnr, A AAA A A!(17 Page 2 of 2 REGISTER AT WWW.COREGIS.COM TO ACCESS LOSS PREVENTION INFORMATION, REPORT CLAIMS, CHECK CLAIM STATUS AND ORDER LOSS RUNS! COR G A GE Capital Compaq MUNICIPALITIES PACKAGE POLICY COMMON POLICY DECLARATIONS POLICY NO: 651-011234 DATE OF ISSUE: 11/01/00 NEW ISSUING COMPANY: COREGIS INSURANCE COMPANY POLICY PERIOD: FROM: 10/01/00 TO 10/01/01 12:01 A.M. STANDARD TIME NAMED INSURED: VILLAGE OF KEY BISCAYNE ADDRESS: 85 West McIntyre Street Key Biscayne, FL 33149 PRODUCER: PROGRAM MANAGEMENT SERVICES 8220 State Road 84, Suite 300 Ft. Lauderdale, FL 33324 FORM OF BUSINESS: PUBLIC ENTITY BUSINESS DESCRIPTION: MUNICIPALITY IN RETURN FOR THE PAYMENT OF PREMIUM, AND SUBJECT TO THE TERMS AND CONDITIONS OF THIS CONTRACT, INSURANCE COVERAGE IS PROVIDED AS STATED IN THIS CONTRACT. THIS CONTRACT CONSISTS OF THE FOLLOWING OR INCLUDED. THE PREMIUMS MAY BE SUBJECT COVERAGE COVERAGES FOR WHICH A PREMIUM IS INDICATED TO ADJUSTMENT. ADVANCE PREMIUM PROPERTY COVERAGE CRIME BOILER AND MACHINERY COVERAGE GENERAL LIABILITY COVERAGE LAW ENFORCEMENT COVERAGE AUTO COVERAGE S Included $ Not Included $ Not Included S Included S Included $ Included TOTAL ADVANCE PREMIUM: $ 107,730 FL EMERGENCY MNGT FEE S 4 FL FIRE MARSHALL SURCHARGE S 4 MAILING ADDRESS STATUTORY ADDRESS COREGIS INSURANCE COMPANY 181 WEST MADISON STREET CHICAGO, IL 60602 COREGIS INSURANCE COMPANY 251 EAST OHIO STREET, SUITE 1100 INDIANAPOLIS, IN 46204 COIi�CIS� A GE CaGiid! Co:rrg�r,' ENDORSEMENT COUNTERSIGNATURE ENDORSEMENT This endorsement ,effective 12:01 A.M. forms a part of Policy No. 651-011234 issued to VILLAGE OF KEY BISCAYNE by COREGIS INSURANCE COMPANY STATE STATE PREMIUM: 107,730 FL It is agreed that the signature appearing on this endorsement is the signature of a person duly authorized to countersig On behalf of the Company in the state designated above and which is appended hereon in conformity with the insurance laws of that state. LWB78(10/74) FM 400.0.24(5/96) Countersigned by R. . 1 .jii .z 9, Authorized Representative COR�o A CECSptd y THIS SCHEDULE IS PART OF YOUR POLICY AND TAKES EFFECT ON THE EFFECTIVE DATE OF YOUR POLICY. SCHEDULE OF FORMS AND ENDORSEMENTS NAMED INSURED: VILLAGE OF KEY BISCAYNE FORM NAME Municipalities Package Policy Common Policy Declaration Schedule of Forms & Endorsements Florida Amendatory Endorsement Florida Cancellation & Nonrenewal Endorsement Notice to Our Policyholders PROPERTY Municipalities Property Coverage Declarations Municipalities Property Declaration Supplement Functional Replacement Cost Endorsement Named Windstorm Deductible GENERAL LIABILITY Municipalities Liability Coverage Declarations Florida Legislative Claim Bill Endorsement Florida — Who Is An Insured Florida Failure to Supply Florida Limited Inverse Condemnations Sewer Backup Coverage Wrongful Acts Coverage AUTOMOBILE LIABILITY Business Auto Coverage Declarations Business Auto Coverage Form Florida Automobile Liability Limits Florida Personal Injury Protection Election of Non -Stacked Coverage Florida Legislative Claim Bill — Auto Florida Changes POLICY NUMBER: 651-011234 FORM NUMBER CMPDK.1000 (10/97) CXCDX.1000 (10/97) CXCSX.1009 (04/98) CXCSX.1008 (04/98 CXCXX.1002 (04/98) CMPDP.1000 (10/97) CMPDP 1002 (10/97) CXPEP.1008 (10/97) CXPEP.1006 (10/97) CMPDL.1001 (08/98) CMCSL 1000 (08/98) CMCSL.1001(08/98) CMCEL.1000 (08/98) CMCEL.1001 (08/98) CXPEL.1010 (10/97) CLPEF 1000 (01/99) CXMDA.1000 (10/98) CA 00 01 07 97 CXMSA 1000 (08/98) CA 22 10 (01/99) AL 88 59 c (10/87) CXCSA.1000 (08/98) CA 01 28 (05/94) EMPLOYEE LIABILITY FORM Employee Benefits Liability Coverage Declarations CXPDL.1000 (10/97) Employee Benefits Liability Part- Claims- Made CXPCL.1000 (10/97) COMMON FORM Municipalities Package Policy Table of Contents CMPXK.1000 (10/97) Municipalities Package Policy CMPCK.1000 (10/97) A GE CanutU! Company ENDORSEMENT THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. FLORIDA AMENDATORY ENDORSEMENT This endorsement modifies insurance provided under the following: SCHOOLS PACKAGE POLICY - PART I MUNICIPALITIES PACKAGE POLICY - PART I SCHOOLS POLICY CONDITIONS MUNICIPALITIES POLICY CONDITIONS COMMON POLICY CONDITIONS When this endorsement is attached to a policy, the following Loss Conditions will apply: 4. Loss Conditions: d. Loss Payment (1) In the event of loss or damage to Covered Property, we will make settlement by whichever of the following methods is least costly: (a) Pay the value of lost or damaged property; (b) Pay the cost of repairing or replacing the lost or damaged property; (c) Take all or any part of the property at an agreed or appraised value; or (d) Repair, rebuild, or replace the property with other property of a like kind, quality, and function. (2) We will not pay you more than your financial interest in the Covered Property. (3) We will give notice of our intentions within 30 days after we receive the sworn proof of loss. (4) We may adjust losses with the owners of lost or damaged property, if other than you. If we pay the owners, such payments will satisfy your claims against us for the owners' property. We will not pay the owners more than their financial interest in the Covered Property. (5) We may elect to defend you against suits arising from claims of owners of property. We will do this at our expense. (6) We will pay for covered losses or damage within 20 days after we receive the sworn statement of loss if: Includes copyrighted material of Insurance Services Office, Inc. CXCSX 1009 04/98 Paae 1 of 2 (a) You have complied with all of the terms of this Section; and (b) (I) We have reached agreement with you on the amount of loss; or (ii) An appraisal award has been made. 6. Legal Action Against Us No one may bring a legal action against us under the Property Section of this Policy unless: a. There has been full compliance with all of the terms in the Property Section of this Policy and the Policy Conditions; and b. The action is brought within five (5) years after the date on which the direct physical loss or damage occurred, unless otherwise provided by statute. Includes copyrighted material of Insurance Services Office, Inc. CXCSX.1009 04/98 Page 2 of 2 A GE Cote, Co►nuany ENDORSEMENT THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. FLORIDA CANCELLATION AND NONRENEWAL ENDORSEMENT This endorsement modifies insurance provided under the following: SCHOOLS PACKAGE POLICY - PART III MUNICIPALITIES PACKAGE POLICY - PART III SCHOOLS POLICY CONDITIONS MUNICIPALITIES POLICY CONDITIONS COMMON POLICY CONDITIONS When this endorsement is attached to a policy: PART III, COMMON POLICY CONDITIONS, A. CANCELLATION, is changed to read: A. CANCELLATION 1. The first Named Insured shown in the declarations may cancel this policy by mailing or delivering to us advance written notice of cancellation. 2. If this policy is in effect ninety (90) days or less: a. If this policy has been in effect for 90 days or less, we may cancel this policy by mailing or delivering to the first Named Insured written not of cancellation, accompanied by the specific reasons for cancellation, at least: (1) 10 days before the effective date of cancellation if we cancel for nonpayment of premium; or (2) 20 days before the effective date of cancellation if we cancel for any other reason, except we may cancel immediately if there has been: (a) A material misstatement or misrepresentation; or (b) A failure to comply with underwriting requirements established by the insurer. b. We may not cancel: (1) On the basis of property insurance claims that are the result of an act of God, unless we can demonstrate, by claims frequency or otherwise, that you have failed to take action reasonably necessary as requested by us to prevent recurrence of damage to the insured property; or (2) On the basis of filing of claims for partial loss caused by sinkhole damage regardless of whether this policy has been the subject of a sinkhole claim, or on the basis of the risk associated with the occurrence of such a claim. However, we may cancel this policy if: Includes copyrighted material of Insurance Services Office, Inc. Copyright, Insurance Services Office, Inc., 1991 CXCSX.1008 (04/98) Page 1 of 3 (a) The total of such property insurance claim payments for this policy exceeds the current policy limits of coverage for the property damage; or (b) You have failed to repair the structure in accordance with the engineering recommendations upon which any loss payment or policy proceeds were based. 3. If this policy is in effect for ninety (90) days or more: a. If this policy has been in effect for more than 90 days, we may cancel this policy only for one or more of the following reasons: (1) Nonpayment of premium; (2) The policy was obtained by a material misstatement (3) There has been a failure to comply with underwriting requirements established by the insurer within 90 days of the effective date of coverage; (4) There has been a substantial change in the risk covered by the policy; (5) The cancellation is for all insureds under such policies for a given class of insureds; (6) On the basis of property insurance claims that are a result of an act of God, if we can demonstrate, by claims frequency or otherwise, that you have failed to take action reasonably necessary as requested by us to prevent recurrence of damage to the insured property; or (7) On the basis of filing of claims for partial loss caused by sinkhole damage, or on the basis of the risk associated with the occurrence of such a claim, if: (a) The total of such property insurance claim payments for this policy exceeds the current policy limits of property damage; or (b) You have failed to repair the structure in accordance with the engineering recommendations upon which any loss payment or policy proceeds were based. b. If we cancel this policy for any of these reasons, we will mail or deliver to the first Named Insured written notice of cancellation, accompanied by the specific reasons for cancellation, at least: (1) 10 days before the effective date of the cancellation if the cancellation is for nonpayment of premium; or (2) 45 days before the effective date of the cancellation if: (a) Cancellation is for one or more of the reasons stated in 3.a.(2) through (3.a.(7) above; and (b) This policy does not cover a residential structure or it contents; or (3) 90 days before the effective date of the cancellation if: (a) Cancellation is for on or more of the reasons stated in 3.a.(2) through 3.a.(7) above; and (b) This policy covers a residential structure or its contents. Includes copyrighted material of Insurance Services Office, Inc. Copyright, Insurance Services Office, Inc., 1991 CXCSX.1008 (04/98) Page 2 of 3 4. We will mail or deliver our notice to the first Named Insured's last known mailing address known to us. 5. Notice of cancellation will state the effective date of cancellation. The policy period will end on that date. 6. If this policy is canceled, we will send the first Named Insured any premium refund due. If we cancel, the refund will be pro rata. If the first Named Insured cancels, the refund may be less than pro rata. The cancellation will be effective if we have not made or offered a refund. 7. If notice is mailed, proof of mailing will be sufficient proof of notice. B. NONRENEWAL, is changed to read: We may elect not to renew this policy by mailing or delivering written notice of nonrenewal stating the reasons for nonrenewal, to the first Named Insured's last mailing address known to us. We will also mail to any mortgage holder or other person shown in this policy with financial interest in Covered Property, at their last mailing address known to us, written notice of nonrenewal. We will mail or deliver these notices at least: 1. 90 days prior to the expiration of the policy if this policy covers a residential structure or its contents; or 2. 45 days prior to the expiration date of the policy for all other policies. 3. If notice is mailed, proof of mailing will be sufficient proof of notice. 4. We may not refuse to renew this policy: a. On the basis of property insurance claims that are the result of an act of God, unless we can demonstrate, by claims frequency or otherwise, that you have failed to take action reasonably necessary as requested by us to prevent recurrence of damage to the insured property; or b. On the basis of filing of claims for partial loss caused by sinkhole damage, regardless of whether this policy has been the subject of a sinkhole claim, or on the basis of the risk associated with the occurrence of such a claim. However, we may refuse to renew this policy if: (1) The total of such property insurance claim payments for this policy exceeds the current policy limits of coverage for property damage; or (2) You have failed to repair the structure in accordance with the engineering recommendations upon which any loss payment or policy proceeds were based. Includes copyrighted material of Insurance Services Office, Inc. Copyright, Insurance Services Office, Inc., 1991 CXCSX.1008 (04/98) Page 3 of 3 COII1t AGE CtalliNi Comonh FLORIDA NOTICE TO OUR POLICYHOLDERS The cost of insurance is just as much of a concern to you the policyholder as it is for Coregis. One way to help control these costs is through loss control and your participation in loss prevention activities. Coregis has available some loss control information that may be of assistance to you in your loss prevention efforts. This information includes: > A Loss Control Newsletter, The Shield, which is sent to insureds three times annually. The newsletter reflects loss control topics that are pertinent to the insured program, as well as national and state issues. > Risk Management Bulletins, called Risk Notes, inform insureds of safety matters which could effect their loss history as well as information regarding specific exposures and practical solutions. > We Tip, Inc., a national nonprofit organization, is a program dedicated to stamping out crime in schools and communities. It provides an anonymous crime hotline to citizens who have information about a crime and want to report it to authorities, without having to reveal their identity. We Tip relays all information to law enforcement agencies in the jurisdiction where the crime is allegedly committed. Coregis offers We Tip membership to our school and municipal property policyholders. > Specific Videos and Brochures: *Safety Video Library with over 6,000 titles *Municipal Defensive Driver Safety Programs *Sample: Municipal Safety Manual *Hurricane Awareness Manual and Video If you would like additional information on how we can assist you in your loss prevention efforts, please contact us at: COREGIS INSURANCE COMPANY 181 West Madison Street Chicago, Illinois 60602 1-800-879-4428 CXCXX 1002 (04/98) Page 1 of 1 COIIk A GE Capital Conttpsnv MUNICIPALITIES PROPERTY COVERAGE DECLARATIONS Effective Date: 10/01/00 Blanket Limit of Insurance: Per Occurrence Deductible: Self Insured Retention: Annual Aggregate Loss Fund: Maintenance Deductible: Policy Number: 651-011234 3,335,375 1,000 SCHEDULE OF SPECIAL PROPERTY COVERAGES These Special Property Coverages are included in the Blanket Limit of Insurance shown above. Coverages Valuation Limits of Insurance Deductibles Business Income Actual Loss $ 250,000 Extra Expense Actual Loss $ 250,000 Valuable Papers Replacement Cost $ 100,000 Accounts Receivable Replacement Cost $ 100,000 Computer Equipment and Media Replacement Cost $ 100,000 Fine Arts Appraised Value $ 100,000 Mobile or Contractors Equip. Actual Cash Value $ 50,000 Miscellaneous Property Actual Cash Value $ 25,000 Trees, Shrubs and Landscaping Specified Cost $ 25,000 Golf Course Greens and Tees Specified Cost $ 50,000 Food Spoilage Specified Cost $ 10,000 Animals Specified Cost $ 25,000 Paved Surfaces Replacement Cost $ 100,000 Commandeered or Impounded Replacement Cost $ 100,000 Emergency Service Equipment Replacement Cost $ 250,000 Communications Equipment Replacement Cost $ 50,000 Money and Securities Specified Cost $ 2,500/5,000 See Above Value Basis: Insurance To Value 100 Agreed Amount Mortgage Holder: Name Address Premises COR S A GE Caoidat Cotttan MUNICIPALITIES PROPERTY DECLARATIONS SUPPLEMENT Effective Date: 10/01/00 Policy Number: 651-011234 • Newly Acquired, occupied or constructed buildings • Property of others: covered up to $1,000,000 limit One Volunteer: $ 1,000 One Employee: $ 2,500 Any one "loss Occurrence": $ 50,000 cow A GE Caret l Company ENDORSEMENT THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. FUNCTIONAL REPLACEMENT COST ENDORSEMENT This endorsement modifies insurance provided under the following: SCHOOLS PACKAGE POLICY - PART I MUNICIPALITIES PACKAGE POLICY - PART I SCHOOLS PROPERTY POLICY MUNICIPALITIES PROPERTY POLICY This Functional Replacement Cost Endorsement only applies to the property indicated as being subject to Functional Replacement Cost in the Property Declarations Supplement or in the Schedule of Functional Replacement Cost Property attached to this endorsement. The following conditions apply to such Functional Replacement Cost Property: 1. Functional Replacement Cost replaces Replacement Cost in 13. Valuation under K. PROPERTY CONDITIONS of your Policy for the property shown as being subject to Functional Replacement Cost. 2. Functional Replacement Cost means the cost to replace the property with similar property intended to perform the same function when replacement with identical property is impossible or unnecessary. 3. The 14. Insurance To Value under K. PROPERTY CONDITIONS of your Policy does not apply to the property subject to this Functional Replacement Cost Endorsement. We will pay no more for loss or damage to this property than the Limit of Insurance for the property bears to the Functional Replacement Cost. 4. We will not pay on a Functional Replacement Cost basis for any loss or damage: a. Until the lost or damaged property is actually repaired or replaced; and b. Unless the repairs or replacement are made within 3 years of the "loss occurrence." 5. The most we will pay on a Functional Replacement Cost basis is the smallest of the following: a. The Limit of Insurance applicable to the lost or damaged property; b. The cost to repair or replace the lost or damaged property with other property used for the same purpose; c. The amount you actually spend to repair or replace the lost or damaged property; or d. The Market Value of the property. Market Value means the price the property would have been expected to realize if sold in a fair market before the loss or damage. co A GE Capital Company ENDORSEMENT THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. NAMED WINDSTORM DEDUCTIBLE ENDORSEMENT This endorsement modifies insurance provided under the following: SCHOOLS PACKAGE POLICY - PART I MUNICIPALITIES PACKAGE POLICY - PART I SCHOOLS PROPERTY POLICY MUNICIPALITIES PROPERTY POLICY If loss or damage to Covered Property is caused by or results from Wind or Windstorm, the following Deductible Clause will replace the Deductibles Provision of your Policy and the Per Occurrence Deductible shown in the Declarations. NAMED WINDSTORM OCCURRENCE DEDUCTIBLE $ 2 % Will be deducted from the claim for loss or damage caused by a "windstorm occurrence" that has been given a name by the National Weather Service or the National Hurricane Center. All insured property damaged or destroyed in the same named "windstorm occurrence" will be subject to this one Named Windstorm Occurrence Deductible; or Of the value of the damaged or destroyed property will be deducted from the claim for loss or damage in any one "windstorm occurrence" that has been given a name by the National Weather Service or the National Hurricane Center subject to the Named Percentage Windstorm Occurrence Deductible Schedule below. This one deductible percentage will be applied to the sum of the values of all insured property damaged or destroyed in the same named "windstorm occurrence." NAMED PERCENTAGE WINDSTORM OCCURRENCE DEDUCTIBLE SCHEDULE When a Named Percentage Windstorm Occurrence Deductible is indicated above, either of the following conditions will apply: 1. The Named Percentage Windstorm Occurrence Deductible indicated will apply, but the amount deducted from the claim will not be less than $ per named "windstorm occurrence;" or 2. The Named Percentage Windstorm Occurrence Deductible indicated will apply, but the amount deducted from the claim will not be: a. Less than $ 5,000 per named 'Windstorm occurrence," nor b. More than $ 100,000 per named "windstorm occurrence." WINDSTORM OCCURRENCE DEFINITION A Windstorm Occurrence shall mean all damage caused by the same storm event no matter how much insured property are involved in the event. The same storm event shall include the main windstorm plus all hail, rain, snow, sleet, tornadoes, lightning or similar related weather phenomenon caused by or related to the main windstorm which occur during a period of 72 consecutive hours. CORli A GE Capital Compay FLORIDA MUNICIPALITIES LIABILITY COVERAGE DECLARATIONS Effective Date: 10/01/00 Policy Nu ►� Primary Coverage Per Claim Deductible ❑Per Occurrence Deductible ❑Self Insured Retention (SIR) SCHEDULE OF LIABILITY COVERAGES GENERAL LIABILITY COVERAGE LIMITS OF INSURANCE $ 100,000 $ 200,000 $ 4,900,000 $ 4,800 000 $ 5,000,000 $Included above $5,000 $50,000 General Liability Statutory Per Person Limit Statutory Per Occurrence Limit Excess of Statutory Limit Per Person Excess of Statutory Limit Per Occurrence Total Occurrence Limit Personal and Each Occurrence Advertising Injury Medical Payments Each Person Fire Damage Legal Each Occurrence LAW ENFORCEMENT LIABILITY COVERAGE LIMITS OF INSURANCE Law Enforcement Statutory Per Person Limit Liability Statutory Per Occurrence Limit Excess of Statutory Limit Per Person Excess of Statutory Limit Per Occurrence Total Occurrence Limit $ 100,000 $ 200,000 $ 4,900,000 $ 4,800 000 $ 5,000,000 GENERAL LIABILITY AND LAW ENFORCEMENT LIABILITY GENERAL AGGREGATE $ 5,000,000 A GE Capital Com,nti ENDORSEMENT THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. FLORIDA LEGISLATIVE CLAIM BILL ENDORSEMENT This endorsement modifies the following coverage forms: MUNICIPALITIES GENERAL LIABILITY AND LAW ENFORCEMENT LIABILITY COVERAGE PART MUNICIPALITIES GENERAL LIABILITY AND LAW ENFORCEMENT LIABILITY COVERAGE FORM The following is added to Section III - Limits of Insurance: 7 . Subject to items 2. or 4. above, the most we will pay is limited by: a. The amount indicated when the Florida Legislature enacts an appropriate claim bill in accordance with Section 768-28 (5), Florida Statutes. b. The amount determined by a court of competent jurisdiction for liable action taken outside the state of Florida or the liability limitation included in Section 768-28 (5), Florida Statutes, is inapplicable. CMCSL.1000 08/98 Page 1 of 1 A GE Cai,ital Corr a ENDORSEMENT THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. FLORIDA AMENDED - WHO IS AN INSURED - MEDICAL DIRECTOR This endorsement modifies the following coverage forms: MUNICIPALITIES GENERAL LIABILITY AND LAW ENFORCEMENT LIABILITY COVERAGE PART MUNICIPALITIES GENERAL LIABILITY AND LAW ENFORCEMENT LIABILITY COVERAGE FORM The following is added to Section II - WHO IS AN INSURED 8 . The Medical Director for the insured Florida Public Entity, but solely while acting within the scope and duties as Medical Director as outlined in Section 401.265 Florida Statutes. CMCSL.1001 08/98 Page 1 of 1 CORt A GE Capital Comon ENDORSEMENT THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. FLORIDA FAILURE TO SUPPLY This endorsement modifies the following coverage forms: MUNICIPALITIES GENERAL LIABILITY AND LAW ENFORCEMENT LIABILITY COVERAGE PART MUNICIPALITIES GENERAL LIABILITY AND LAW ENFORCEMENT LIABILITY COVERAGE FORM Under Section I -Coverage Item 1 b. (1) is deleted and replaced by the following: (1) Failure to Supply We will pay $250,000 for "damages," defense costs and/or claims expenses because of "bodily injury" or "property damage" caused by an "occurrence," which result from any 'suit" otherwise covered by this policy arising, in whole or in part, out of the failure of any insured to adequately supply gas, oil, electricity or steam. Our limit of liability shall not exceed $250,000 in the aggregate for all "damages," defense costs and/or claims expenses which result from any and all covered "suits" arising out of the failure of any insured to adequately supply gas, oil, electricity or steam. We will pay $ 250,000 for "damages," defense costs and/or claims expenses because of "bodily injury" or "property damage" caused by an "occurrence," which result from any 'suit" otherwise covered by this policy arising, in whole or in part, out of the failure of any insured to adequately supply water. Our limit of liability shall not exceed $ 250,000 in the aggregate for all "damages," defense costs and/or claims expenses which result from any and all covered 'suits" arising out of the failure of any insured to adequately supply gas, oil, water, electricity or steam. CMCEL 1000 08/98 Pane 1 of 1 CORD A GE Capita! Companv ENDORSEMENT THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. FLORIDA LIMITED INVERSE CONDEMNATION EXTENSION ENDORSEMENT This endorsement modifies the following coverage forms: MUNICIPALITIES GENERAL LIABILITY AND LAW ENFORCEMENT LIABILITY COVERAGE PART MUNICIPALITIES GENERAL LIABILITY AND LAW ENFORCEMENT LIABILITY COVERAGE FORM Limited Inverse Condemnation Liability Extension Aggregate Limit $ 1,000,000 I. Exclusion q. Is hereby deleted. II. Definition 11. 'Personal Injury" is amended to include the following: j. eminent domain; k. condemnation; I. inverse condemnation. III. Section III -LIMITS OF INSURANCE is amended to include the following: 7. The limit of liability shown on this endorsement is the most we will pay for any claims arising out of II. above by whatever name called an whether based on Federal or state causes of action. IV. All sums paid under this endorsement shall apply and be subject to the policy general aggregate limit. CMCEL 1001 0R/AR Onnn 1 of i CORD A GE Capital Cowie), ENDORSEMENT THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. SEWER BACKUP COVERAGE This endorsement modifies insurance provided under the following: SCHOOLS PACKAGE POLICY - PART II MUNICIPALITIES PACKAGE POLICY - PART II SCHOOLS LIABILITY POLICY MUNICIPALITIES LIABILITY POLICY The following is added to SECTION I - COVERAGES, COVERAGE A. GENERAL LIABILITY AND LAW ENFORCEMENT LIABILITY, 1. Insuring Agreement - GENERAL LIABILITY, b. Additional Coverages: (4) SEWER BACKUP COVERAGE (a) Insuring Agreement We will pay damages as described below for "property damage", excluding loss of use of tangible property, caused by an "occurrence" resulting in sewer drain backup: (1) On "premises" that you do not own or rent; (2) Because of your operations; provided that: (1) The "occurrence" takes place in the "coverage territory" and during the policy period; (2) The "damages" are incurred and reported to us within one year of the date of the "occurrence"; and We will make these payments regardless of negligence. These payments will not exceed the limit of $5,000 per claimant and $25,000 in the aggregate during the policy period. If it is determined that you are negligent, these limits will not apply. (b) Exclusions We will not pay damages for "property damage": (1) Included within the "products -completed operations hazard"; (2) Excluded under COVERAGES A or B; (3) Due to war whether or not declared, or any act or condition incident to war. War includes civil war, insurrection, rebellion or revolution. /'vom 1 n4 n 4 run? A GE Capital Compn;y ENDORSEMENT THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. SCHEDULE OF OPTIONAL COVERAGES ® Enhanced Employment Liability Coverage ® Nonmonetary Defense Coverage WRONGFUL ACTS COVERAGE 1. INSURING AGREEMENT In addition to any other insuring agreement provided by the policy to which this endorsement is attached, and subject to the Limits of Insurance and all other Terms and Conditions of such policy, we will pay all sums an Insured becomes legally obligated to pay as "damages" caused by the "wrongful act" of any insured provided the "wrongful act" takes place during the policy period. We will have the right and duty to defend an Insured against any "suit" seeking such "damages". However, we will have no duty to defend any Insured against any "suit" seeking "damages" to which this policy does not apply. We may, at our discretion, investigate or settle any claim against any Insured seeking "damages" covered by this policy. We will have no obligation to pay any "damages" in excess of the Limits of Insurance specified in this policy nor will we have any obligation to defend once the Limits of Insurance have been exhausted by settlement or judgment. 2. EXCLUSIONS The Exclusions applicable to other coverages under the policy to which this endorsement is attached are not applicable to the Wrongful Acts coverage of this endorsement and the following exclusions apply to the Wrongful Acts coverage of this endorsement only. This endorsement does not apply, regardless of the cause of action or legal theory alleged, to any claim or "damages" "arising out of': A. Any Insured gaining profit, remuneration or advantage to which any Insured was not entitled. B. Any criminal, dishonest, malicious, fraudulent or knowingly committed "wrongful act" . C. Any death, "bodily injury", sickness, disease, disability, shock, humiliation, embarrassment, mental injury, mental anguish, emotional distress, or injury to personal or business reputation or character. D. 1. Death or physical injury to any employee of any insured "arising out of and in the course of employment by any insured, including any claim for contribution or indemnity, or 2. Any obligation of any insured under a worker's compensation, disability benefits, unemployment compensation law or any similar law. E. 1. Invasion of privacy, disparagement or defamation, including, but not limited to, libel or slander; 2. Assault, battery, false arrest, detention, imprisonment, malicious prosecution or abuse of process; 3. Trespass, nuisance, wrongful entry, eviction, or violation of rights of occupancy. F. Destruction, loss, theft, conversion, loss of use, diminution in value of or injury to, any tangible property. G. Any claim or "damages" "arising out of" inverse condemnation, temporary or permanent taking, adverse possession or dedication by adverse use. H. Strikes, lock -outs, riots, civil commotion, war, whether or not declared, civil war, insurrection, rebellion, revolution or terrorism. I. Any violation of or failure to comply with the Employee Retirement Security Act of 1974 or any similar state statute. J. Any Insured's activities as a trustee or fiduciary as respects any type of employee benefit plan, including any pension, savings or profit sharing plan subject to ERISA or similar state statute. K. Breach of contract, whether oral, written or implied, except:: 1. an implied "Employment Contract", or 2. a written "Employment Contract" that is the result of a collective bargaining agreement. L. 1. Actual, alleged or threatened discharge, dispersal, seepage, migration, release or escape of any solid, liquid, gaseous, thermal, or aural irritant, pollutant, contaminant, or organism, including, but not limited to, noise, lead, smoke, vapors, soot, fumes, acids, alkalis, chemicals or waste materials (including those that are or are to be stored, recycled, reconditioned or reclaimed), into or upon land, air, water or property. 2. Any claim or "damages" "arising out of" any voluntary or governmental direction or request to test for, monitor, clean up, remove, contain, treat, detoxify, remediate or neutralize any such irritant, pollutant, contaminant, noise, or organism, or land, air, water, or property. 3. Any claim or "damages" "arising out of" electromagnetic fields or other electrical or magnetic waves or radiation. M. Any claim or "damages" "arising out of' the manufacture of, mining of, use of, removal of, or exposure to asbestos, asbestos products, asbestos fibers, or asbestos dust. N. 1. Any claim or "damages" "arising out of" the use, handling, sale, distribution, transport, shipment, dispersal, storage, or disposal of any nuclear, radioactive or fissionable material, or any alleged violation of any environmental statute, regulation, or ordinance with respect to such material. 2. Any claim or "damages" "arising out of" the planning, construction, maintenance, operation or use of any nuclear reactor, nuclear waste storage facility or disposal site or any other nuclear facility, or nuclear reaction, nuclear radiation or radioactive contamination, or to any act or condition incident to the foregoing. O. Any claim or "damages" "arising out of' any "wrongful act" which either occurred or began prior to the inception of this policy. 3. SUPPLEMENTARY PAYMENTS All supplementary payments available under other coverages of the policy to which this endorsement is attached also apply to this Wrongful Acts coverage. 4. WHO IS AN INSURED All parties defined as Insureds under other coverages of the policy to which this endorsement is attached are also insureds for this Wrongful Acts coverage. 5. LIMITS OF INSURANCE A. The Limits of Insurance available under the policy to which this endorsement is attached also apply to this Wrongful Acts coverage. B. The existence of this coverage does not increase the Limits of Insurance available for all coverage under this policy. C. For the purposes of determining the Limits of Insurance available and any retention or deductible, a "wrongful act" occurring over a period of time, or a series of logically or causally connected "wrongful acts", shall be considered as one "wrongful act", which will be deemed to only take place at the beginning of, or first, such "wrongful act". 6. CONDITIONS A. This endorsement is not valid unless attached to and made a part of a valid policy issued by this company. B. All of the other Conditions applicable to the policy to which this endorsement is attached also apply to this endorsement. 7. DEFINITIONS All of the Definitions applicable to the policy to which this endorsement is attached also apply to this endorsement with the exception of numbers 4, 5, and 16. Additionally, the following definitions are applicable to the Wrongful Acts coverage of this endorsement:. 1. "Arising Out Of" means connected with, incidental to, or growing out of. 2. "Coverage Territory" means that coverage applies to "wrongful acts" which take place during the policy period anywhere in the world, provided that claim is made or "suit" is brought against an insured in the United States of America, its territories and possessions or Canada. 3. "Employment Claims" means any claim by an employee of the Named Insured against an insured alleging a "wrongful act" in hiring, advancement, remuneration, treatment, condition or termination of employment 4. "Employment Contract" means any contract of employment between the Named Insured and an employee. 5. "Suit" means a civil proceeding in a court of law where "damages" may be awarded. 6. "Wrongful Act" means any act, error, or omission of an Insured constituting a breach of a duty imposed by law or a breach of an "Employment Contract", 8. OPTIONAL COVERAGES The following optional coverages apply only if an X is shown in a box in the Schedule on page one of this endorsement. A. Optional enhanced employment liability coverage: Exclusion C. of this endorsement does not apply to "bodily injury", sickness, disease, disability, shock, humiliation, embarrassment, mental injury, mental anguish, emotional distress , or injury to personal or business reputation or character arising out of "employment claims". B. Optional nonmonetary defense coverage: We will pay the reasonable costs of defense of any legal action against an insured seeking nonmonetary relief by reason of a "wrongful act" which is otherwise covered by this endorsement subject to the following: 1. The limit of our obligation to pay for all such defense costs and fees shall not exceed $10,000 per "suit" or $50,000 in the aggregate for all "suits" during the policy period. 2. Payments under this optional coverage shall be in addition to any other obligation under the policy to which this endorsement is attached. 3. We will have no obligation to investigate or defend any suit under this optional coverage. col& A GE Coital Compaq Declaration EMPLOYEE BENEFITS LIABILITY COVERAGE DECLARATIONS Policy No. 651-011234 Retroactive Date: 10/01/00 Effective Date: 10/01/2000 12:01 A.M. Standard Time Limit of insurance Statutory Per Person Limit $ 100,000 Statutory Per Occurrence Limit $ 200,000 Excess of Statutory Limit Per Person $ 4,900,000 Excess of Statutory Limit Per Occurrence $ 4,800,000 Total Occurrence Limit $ 5,000,000 Aggregate Limit $ 5,000,000 DEDUCTIBLE AMOUNT $ N/A each claim. ❑ Self- Insured Retention $ N/A SCHEDULE NUMBER OF EMPLOYEES RATE PREMIUM 1-1,000 Incl. $ Incl. FORMS AND ENDORSEMENTS (other than applicable Forms and Endorsements shown elsewhere in the policy) Forms and Endorsements applying to this Coverage part and made part of this policy at time of issue: SEE SCHEDULE OF FORMS AND ENDORSEMENTS THESE DECLARATIONS ARE PART OF THE POLICY DECLARATIONS CONTAINING THE NAME OF THE INSURED AND THE POLICY PERIOD. A of Capital Company Coverage Part EMPLOYEE BENEFITS LIABILITY COVERAGE PART- CLAIMS -MADE This Coverage Part is limited to liability for only those claims that are first made against the insured and reported to the Company or its authorized representative during the policy period unless, and to the extent, the Extended Reporting Period Option applies in V. below. We will not pay more than the limit of liability shown on the Policy Declarations. INSURING AGREEMENTS The Company agrees with the insured, in consideration of the payment of premium and subject to the exclusions, conditions, definitions and other terms of this Coverage Part, as follows: I. COVERAGE The Company will pay on behalf of the insured all sums which the insured shall become legally obligated to pay as damages sustained by any current, prospective or former "employee" or the beneficiaries or legal representatives thereof caused by a negligent act, error or omission of any insured, or any other person for whose acts an insured is legally liable in the "administration" of any insured's "employee benefit programs". We will have the right and duty to defend any "suit" seeking damages. But: 1. The amount we will pay for damages is limited as described in Section IV. Limits of Insurance; 2. We may, at our discretion investigate any negligent act, error or omission and settle any claim or "suit" that may result; and 3. Our right and duty to defend end when we have used up the applicable limit of insurance in the payment of judgments or settlements. II. EXCLUSIONS This insurance does not apply to: 1. Damages due to any dishonest, fraudulent, criminal or malicious act; 2. Damages due to libel, slander, discrimination, humiliation, emotional distress, harassment, or termination from employment; 3. "Bodily injury" or "property damage"; 4. Failure of performance of contract by any Insurer, including failure of "employee benefit programs" to provide benefits; CXPCL.1000 10/97 Page 1 of 6 5. The insured's failure to comply with any law concerning workers compensation, unemployment insurance, social security or disability benefits; 6. Any claim based upon: a. Failure of stock to perform as represented by an insured; b. Advice given by an insured to any "employee" to participate or not to participate in stock subscription plans; c. The investment or non -investment of funds; 7. Any claim based upon the violation of any of the responsibilities, obligations or duties imposed upon fiduciaries by the Employee Retirement Income Security Act of 1974, or amendments thereto or any regulations as are promulgated thereunder. 8. Fiduciary Activities "Bodily injury", "property damage", "personal injury" or "advertising injury" arising out of any insured's activities in a fiduciary capacity including but not limited to "employee benefit programs", any self insurance fund or the refund or collection of taxes, fees and assessments. This exclusion shall not apply to the "administration" of "employee benefit programs". III. Who Is an Insured 1. If you are designated in the Declarations as: a. An individual, you and your spouse are insureds, but only with respect to the conduct of a business of which you are the sole owner. b. A partnership or joint venture, you are an insured. Your members, your partners, and their spouses are also insureds, but only with respect to the conduct of your business. c. A limited liability company, you are an insured. Your members are also insureds, but only with respect to the conduct of your business. Your managers are insureds, but only with respect to their duties as your managers. d. An organization other than a partnership, joint venture or limited liability company, you are an insured. Your "executive officers" and directors are insureds, but only with respect to their duties as your officers or directors. Your stockholders are also insureds, but only with respect to their liability as stockholders. 2. Each of the following is also an insured: a. Your "employees," other than either your "executive officers" (if you are an organization other than a partnership, joint venture or limited liability company) or your managers (if you are a limited liability company), but only for acts within the scope of their employment by you or while performing duties related to the conduct of your business. However, none of these "employees" is an insured for: (1) "Bodily injury" or "personal injury": CXPCL.1000 10/97 Page 2 of 6 (a) To you, to your partners or members (if you are a partnership or joint venture), to your members (if you are a limited liability company), or to a co -"employee" while that co -"employee" is either in the course of his or her employment or performing duties related to the conduct of your business; (b) To the spouse, child, parent, brother or sister of that co -"employee" as a consequence of paragraph (1)(a) above; (c) For which there is any obligation to share damages with or repay someone else who must pay damages because of the injury described in paragraphs (1)(a) or (b) above; or (d) Arising out of his or her providing or failing to provide professional health care services. (2) "Property damage" to property: (a) Owned, occupied or used by, (b) Rented to, in the care, custody or control of, or over which physical control is being exercised for any purpose by you, any of your "employees," any partner or member (if you are a partnership or joint venture), or any member (if you are a limited liability company). b. Any person (other than your "employee"), or any organization while acting as your real estate manager. c. Any person or organization having proper temporary custody of your property if you die, but only: (1) With respect to liability arising out of the maintenance or use of that property; and (2) Until your legal representative has been appointed. d. Your legal representative if you die, but only with respect to duties as such. That representative will have all your rights and duties under this Coverage Part. 3. With respect to "mobile equipment" registered in your name under any motor vehicle registration law, any person is an insured while driving such equipment along a public highway with your permission. Any other person or organization responsible for the conduct of such person is also an insured, but only with respect to liability arising out of the operation of the equipment, and only if no other insurance of any kind is available to that person or organization for this liability. However, no person or organization is an insured with respect to: a. "Bodily injury" to a co -"employee" of the person driving the equipment; or b. "Property damage" to property owned by, rented to, in the charge of or occupied by you or the employer of any person who is an insured under this provision. CXPCL.1000 10/97 Page 3 of 6 4. Any organization you newly acquire or form, other than a partnership, joint venture or limited liability company, and over which you maintain ownership or majority interest, will qualify as a Named Insured if there is no other similar insurance available to that organization. However: a. Coverage under this provision is afforded only until the 90th day after you acquire or form the organization or the end of the policy period, whichever is earlier; b. Coverage A does not apply to "bodily injury" or "property damage" that occurred before you acquired or formed the organization; and c. Coverage B does not apply to "personal injury" or "advertising injury" arising out of an offense committed before you acquired or formed the organization. No person or organization is an insured with respect to the conduct of any current or past partnership, joint venture or limited liability company that is not shown as a Named Insured in the Declarations. IV. Limits of Insurance The limits of insurance are: 1. The Each Claim limit is the most we will pay for damages under Employee Benefit Liability Coverage arising out of any one "occurrence". 2. Our obligation under Employee Benefit Liability Coverage to pay damages on your behalf shall not exceed the Limit of Liability as shown on the Employee Benefits Liability Policy Declarations. V. Extended Reporting Period Option In case of cancellation or non -renewal of this policy by the Named Insured or the Company, for any reason other than non-payment of premium or deductible or failure to comply with the terms and conditions of this policy, the Named Insured shall have the right to have an endorsement issued extending the reporting period, for an additional premium of: 1. 100% of the full annual premium for this coverage, to a period of (12) months, or 2. 135% of the full annual premium for this coverage, to a period of (24) months, or 3. 150% of the full annual premium for this coverage, to a period of (36) months, or 4. 175% of the full annual premium for this coverage, to a period of (60) months, or 5. 200% for an unlimited period. following the effective date of such cancellation or non -renewal, in which to give written notice to the Company of claims first made against any insured during this Extended Reporting Period for any "occurrence" which happens prior to the termination of the final Policy Period, subject to its terms, limitations, exclusions and conditions. This right shall terminate, however, unless written notice of such election together with the additional premium is received by the Company or its authorized agent from the Named Insured within (60) days after the effective date of cancellation or non -renewal. At the commencement of any Extended Reporting Period Option, the entire premium shall be deemed earned, and in the event the Named Insured terminates the Extended CXPCL.1000 10/97 Page 4 of 6 Reporting Period before its terms for any reason, the Company shall not be liable to return to the Named Insured any portion of the premium for the Extended Reporting Period. The fact that the period during which claims must be first made against the insured under this policy is extended by virtue of any Extended Reporting Period Option shall not in any way increase the limit of liability of this policy. The limit of liability under any Extended Reporting Period Option shall be part of, and not in addition to, the limit of liability available under the last policy issued to the Named Insured. VI. DEFINITIONS The following additional definitions apply to this endorsement: 1. "Administration" means: a. giving counsel to "employees," dependents and beneficiaries with respect to "employee benefit programs;" b. interpreting the "employee benefit programs;" c. handling of records in connection with the "employee benefit programs;" d. effecting enrollment or termination of "employees" under the "employee benefit programs;" provided all such acts are authorized by you. 2. "Advertising injury" means injury arising out of one or more of the following offenses: a. Oral or written publication of material that slanders or libels a person or organization or disparages a person's or organization's goods, products or services; b. Oral or written publication of material that violates a person's right of privacy; c. Misappropriation of advertising ideas or style of doing business; or d. Infringement of copyright, title or slogan. 3. "Bodily injury" means bodily injury, sickness or disease sustained by a person, including death resulting from any of these at any time. 4. "Employee" means: a. Any person while in your service whom: (1) You compensate directly by salary, wages or commissions; and (2) You have the right to direct and control while performing services for you; or b. Any person employed by an employment contractor while that person is subject to your direction and control and performing services for you. But "employee" does not mean any agent, broker, consignee, independent contractor or representative of the same general character. CXPCL.1000 10/97 Page 5 of 6 5. "Employee benefit programs" means group life insurance, group accident or health insurance, profit sharing plans, pension plans, employee stock subscription plans, workers' compensation, unemployment insurance, salary continuation plans, social security, disability benefits insurance, savings, vacation plans or any other similar "employee benefit program." 6. "Personal injury" means injury, other than "bodily injury," arising out of one or more of the following offenses: a. False arrest, detention or imprisonment; b. Malicious prosecution; c. The wrongful eviction from, wrongful entry into, or invasion of the right of private occupancy of a room, dwelling or premises that a person occupies by or on behalf of its owner, landlord or lessor; d. Oral or written publication of material that slanders or libels a person or organization or disparages a person's or organization's goods, products or services; or e. Oral or written publication of material that violates a person's right of privacy. 7. "Property damage" means: a. Physical injury to tangible property, including all resulting loss of use of that property. All such loss of use shall be deemed to occur at the time of the physical injury that caused it; or b. Loss of use of tangible property that is not physically injured. All such loss of use shall be deemed to occur at the time of the "occurrence" that caused it. 8. "Suit" means a civil proceeding in which damages because of "bodily injury," "property damage," "personal injury" or "advertising injury" to which this insurance applies are alleged. "Suit" includes: a. An arbitration proceeding in which such damages are claimed and to which the insured must submit or does submit with our consent; or b. Any other alternative dispute resolution proceeding in which such damages are claimed and to which the insured submits with our consent. CXPCL.1000 10/97 Page 6 of 6 COR C o BUSINESS AUTO COVERAGE FORM DECLARATIONS ITEM ONE NAMED INSURED: FORM OF BUSINESS: VILLAGE OF KEY BISCAYNE POLICY NO.: 651-011234 [X] Municipality [ ] School [ ] Other ITEM TWO SCHEDULE OF COVERAGES AND COVERED AUTOS This policy provides only those coverages where a charge is shown in the premium column below. Each of these coverages will apply only to those "autos" shown as covered "autos". "Autos" are shown as covered "autos" for a particular coverage by the entry of one or more of the symbols from the Covered Autos Section of the Business Auto Coverage Form next to the name of the coverage. COVERAGES COVERED AUTOS (Entry of one or more of the symbols from the Covered Autos Section of the Business Auto Coverage Form shows which autos ar@c\overed autos ) LIMIT THE MOST WE WILL PAY FOR ANY ONE ACCIDENT OR LOSS PREMIUM LIABILITY 1 $ See CXMSA 1000 (08198) $ Inc' PERSONAL INJURY PROTECTION (or equivalent No-fault Coverage) 5 - SEPARATELY STATED IN EACH P.I.P. ENDORSEMENT MINUS $ Statutory DED (See CA 2210 (01199) $ Inc! ADDED PERSONAL INJURY PROTECTION (or equivalent added No-fault Coverage) SEPARATELY STATED IN EACH ADDED P.I.P. ENDORSEMENT $ PROPERTY PROTECTION INSURANCE (Michigan only) SEPARATELY STATED IN THE P.P.I ENDORSEMENT MINUS $ DED. FOR EACH ACCIDENT. $ AUTO MEDICAL PAYMENTS $ $ UNINSURED MOTORISTS $ $ UNDERINSURED MOTORISTS (When not included In Uninsured Motorists Coverage) $ $ PHYSICAL DAMAGE COMPREHENSIVE COVERAGE . 2 ACTUAL CASH VAN OR COST OF REPAIR, HICHEVER IS LESS, MINUS $1.000 DED. FOR EACH COVERED AUTO, $Inca. BUT NO DEDUCTIBLE APPLIES TO LOSS CAUSED BY FIRE OR LIGHTNING. See ITEM FOUR For Hired Or Borrowed "Autos". PHYSICAL DAMAGE SPECIFIED CAUSES OF LOSS COVERAGE ACTUAL CASH VALUE OR COST OF REPAIR, WHICHEVER IS LESS, MINUS $25 DED. FOR EACH COVERED AUTO FOR LOSS CAUSED BY MISCHIEF OR VANDALISM. See ITEM FOUR For Hired Or Borrowed "Autos". $ PHYSICAL DAMAGE COLLISION COVERAGE 2 ACTUAL CASH VALUE) COST OF REPAIR, WHICHEVER IS LESS, MINUS $ 1.000 DED. FOR EACH COVERED AUTO. $Incl. See ITEM FOUR FOR For Hired Or Borrowed "Autos". PHYSICAL DAMAGE TOWING AND LABOR (Not Available In California) $ For Each Disablement of A Private Passenger' Auto". $ ENDORSEMENTS ATTACHED TO THIS COVERAGE FORM: IL 00 21 11 85 - Broad Form Nuclear Exclusion (Not Applicable in New York) PREMIUM FOR ENDORSEMENTS $ ESTIMATED TOTAL PREMIUM $ INCL. CXMDA 100010/98 Copyright, Insurance Services Office, Inc., 1997 Page 1 of 3 ITEM THREE SCHEDULE OF COVERED AUTOS YOU OWN DESCRIPTION PURCHASED TERRITORY Cover- ed Auto No Year, Model, Trade Name, Body Type Serial Number (s) Vehicle Identification Number (V1N) Original Cost New Actual Cost & NEW (N) USED (U) Town & State Where The Covered Auto Will Be Principally Garaged 1 Per schedule file with the company $ $ 2 $ $ 3 $ $ 4 $ $ 5 $ $ CLASSIFICATION Cvrd Auto No Radius Of Oper Business Use s=service rr retail c=commer Size GVW, GCW Or Vehicle Seating Capacity Age Group Factor Primary Rating Factor 2ndary Code Ra ing EXCEPT For Towing, All Physical Damage Loss Is Payable To You And The Loss Payee Named Below As Interests May Appear At the Time Of The Loss Liab Phy Dam Liab Phy Dam 1 2 3. 4. 5 LIMITS and PREMIUMS COVERAGES - PREMIUMS, LIMITS AND DEDUCTIBLES (Absence of a deductible or limit entry in any column below means that the limit or deductible entry in the corresponding ITEM TWO column applies instead ) LIABILITY P I P. ADDED P 1 P P.P.I (M ch Only) AUTO. MED. PAY Cvrd Auto No Limit (In Thousands) Premium Limit* minus deductible shown below Premium Limit' Premium Limit* minus deductible shown below Premium Limit (In Thousands) Premium 1 2 3 4 5 Total Premium XXXXXXXXX XXXXXXXXXX XXXXXXXXX Add'I Coverage(s) ' Limit stated in each applicable P.1 P. or P.P I Endorsement LIMITS and PREMIUMS COVERAGES - PREMIUMS, LIMITS AND DEDUCTIBLES (Absence of a deductible or imit entry in any column below means that the limit or deductible entry in the corresponding ITEM TWO column applies instead.) COMPREHENSIVE SPECIFIED CAUSES OF LOSS COLLISION TOWING AND LABOR Cvrd Auto No Limit" minus deductible shown below Premium Limit" Premium Limit" minus deductible shown below Premium Limit per disablement Premium 1. 2. 3. 4. 5. Total Premium XXXXXXXXXX Add'I Coverage(s) ' Limit stated in each applicable P.I.P or P P I. Endorsement CXMDA 1000 10/98 Copyright, Insurance Services Office, Inc , 1997 Page 2 of 3 ITEM FOUR SCHEDULE OF HIRED OR BORROWED COVERED AUTO COVERAGE AND PREMIUMS LIABILITY COVERAGE - RATING BASIS, COST OF HIRE STATE ESTIMATED COST OF HIRE FOR EACH STATE RATE PER EACH$100 COST OF HIRE FACTOR (If Liability Coy Is Primary) PREMIUM $ S $ $ $ $ $ $ $ Cost of hire means the total amount you incur for the hire of "autos you don't own (not including "autos" you borrow or rent from Total Premium $ your partners or employees or their family members) Cost of hire does not include charges for services performed by motor carriers of property or passengers PHYSICAL DAMAGE COVERAGE COVERAGES LIMIT OF INSURANCE THE MOST WE WILL PAY DEDUCTIBLE ESTIMATED ANNUAL COST OF HIRE RATE PER EACH S100 ANNUAL COST OF HIRE RREMIUM COMPREHENSIVE ACTUAL CASH VALUE OR COST OF REPAIR, WHICHEVER IS LESS, MINUS $ DED FOR EACH COVERED AUTO, BUT NO DEDUCTIBLE APPLIES TO LOSS CAUSED BY FIRE OR LIGHTNING. $ $ $ SPECIFIED CAUSES OF LOSS ACTUAL CASH VALUE OR COST OF REPAIR, WHICHEVER IS LESS, MINUS $25 DED FOR EACH COVERED AUTO FOR LOSS CAUSED BY MISCHIEF OR VANDALISM. $ $ $ COLLISION ACTUAL CASH VALUE OR COST OF REPAIR, WHICHEVER IS LESS, MINUS $ DED. FOR EACH COVERED AUTO. $ $ $ TOTAL PREMIUM $ ITEM FIVE SCHEDULE FOR NON -OWNERSHIP LIABILITY NAMED INSURED'S BUSINESS RATING BASIS NUMBER PREMIUM Other Than A Social Service Agency Number Of Employees TBA $ Number Of Partners $ Social Service Agency Number Of Employees $ Number Of Volunteers $ TOTAL $ ITEM SIX SCHEDULE FOR GROSS RECEIPTS OR MILEAGE BASIS - LIABILITY COVERAGE - PUBLIC AUTO OR LEASING RENTAL CONCERNS ESTIMATED YEARLY ❑ Gross Receipts 0 Mileage RATES PREMIUMS 0 Per $100 Of Gross Receipts 0 Per Mile LIABILITY COVERAGE AUTO MEDICAL PAYMENTS LIABILITY COVERAGE AUTO MEDICAL PAYMENTS $ $ $ $ $ $ $ $ TOTAL PREMIUMS $ $ MINIMUM PREMIUMS $ $ When used as a premium basis* FOR PUBLIC AUTOS Gross Receipts means the total amount to which you are entitled for transporting passengers, mail or merchandise dunng the policy period regardless of whether you or any other carrier originates the transportation. Gross Receipts does not include* A Amounts you pay to railroads, steamship lines, airlines and other motor camers operating under there own ICC or PUC permits. B Advertising revenue. C Taxes which you collect as a separate item and remit directly to a governmental division D C.O.D. collections for cost of mail or merchandise including collection fees Mileage means the total live and dead mileage of all revenue producing units operated during the policy penod FOR RENTAL OR LEASING CONCERNS Gross receipts means the total amount to which you are entitled for the leasing or rental of 'autos" during the policy penod and includes taxes except those taxes which you collect as a separate item and remit directly to a governmental division Mileage means the total of all live and dead mileage developed by all the "autos" you teased or rented to others during the policy period. CXMDA 1000 10/98 Copynght, Insurance Services Office, Inc., 1997 Page 3 of 3 COII s A GE Cuitt! Comm ENDORSEMENT THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. FLORIDA AUTOMOBILE LIABILITY LIMITS This endorsement modifies insurance provided under the following: BUSINESS AUTOMOBILE COVERAGE FORM The following limits will apply to your Business Automobile Liability Coverage. In no event will liability under this policy exceed the Total Any One Accident Limit indicated below. SCHEDULE OF COVERAGES AND LIMITS 1. Statutory Automobile Liability Limits: Each Person $100,000 Each Accident $200,000 2. Excess of Statutory Automobile Liability Limits: Each Person $4,900,000 Each Accident $4,800,000 3. Total Any One Accident Limit $5,000,000 rYnece l nnn na/OR Pane. 1 of 1 COMMERCIAL AUTO CA 00 01 07 97 BUSINESS AUTO 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 "our" refer to the Company providing this insurance. Other words and phrases that appear in quotation marks have special meaning. Refer to Section V —Definitions. SECTION I —COVERED AUTOS ITEM TWO of the Declarations shows the "autos" that are covered "autos" for each of your coverages. The following numerical symbols describe the "autos" that may be covered "autos". The symbols entered next to a coverage on the Declarations designate the only "autos" that are covered "autos". A. DESCRIPTION OF COVERED AUTO DESIGNA- TION SYMBOLS SYMBOL DESCRIPTION 1 = ANY "AUTO". 2 = OWNED "AUTOS" ONLY. Only those "autos" you own (and for Liability Coverage any "trailers" you don't own while attached to power units you own). This includes those "autos" you acquire ownership of after the policy begins. 3 = OWNED PRIVATE PASSENGER "AUTOS" ONLY. Only the private passen- ger "autos" you own. This includes those private passenger "autos" you acquire ownership of after the policy begins. 4 = OWNED "AUTOS" OTHER THAN PRI- VATE PASSENGER "AUTOS" ONLY. Only those "autos" you own that are not of the private passenger type (and for Liabil- ity Coverage any "trailers" you don't own while attached to power units you own). This includes those "autos" not of the pri- vate passenger type you acquire owner- ship of after the policy begins. 5 = OWNED "AUTOS" SUBJECT TO NO- FAULT. Only those "autos" you own that are required to have No -Fault benefits in the state where they are licensed or prin- cipally garaged. This includes those "autos" you 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" SUBJECT TO A COMPULSORY UNINSURED MOTOR- ISTS LAW. Only those "autos" you own that because of the law in the state where they are licensed or principally garaged are required to have and cannot reject Uninsured Motorists Coverage. This in- cludes those "autos" you acquire owner- ship of after the policy begins provided they are subject to the same state unin- sured motorists requirement. 7 = SPECIFICALLY DESCRIBED "AUTOS". Only those "autos" described in ITEM THREE of the Declarations for which a premium 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. Only those "autos" you lease, hire, rent or borrow. This does not include any "auto" you lease, hire, rent or borrow from any of your "employees" or partners or members of their households. 9 = NONOWNED "AUTOS" ONLY. Only those "autos" you do not own, lease, hire, rent or borrow that are used in connection 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 mem- bers of their households but only while used in your business or your personal affairs. B. OWNED AUTOS YOU ACQUIRE AFTER THE POLICY BEGINS 1. If symbols 1, 2, 3, 4, 5 or 6 are entered next to a coverage in ITEM TWO of the Declarations, then you have coverage for "autos" that you acquire of the type described for the remainder of the policy period. 2. But, if symbol 7 is entered next to a coverage in ITEM TWO of the Declarations, an "auto" you acquire will be a covered "auto" for that coverage only if: a. We already cover all "autos" that you own for that coverage or it replaces an "auto" you previously owned that had that cover- age; and b. You tell us within 30 days after you acquire it that you want us to cover it for that cov- erage. CA 196 (7-97) CA 00 01 07 97 Copyright, Insurance Services Office, Inc., 1996 Page 1 of 10 C. CERTAIN TRAILERS, MOBILE EQUIPMENT AND TEMPORARY SUBSTITUTE AUTOS If Liability Coverage is provided by this Coverage Form, the following types of vehicles are also cov- ered "autos" for Liability Coverage: 1. "Trailers" with a load capacity of 2,000 pounds or less designed primarily for travel on public roads. 2. "Mobile equipment" while being carried or towed by a covered "auto". 3. Any "auto" you do not own while used with the permission of its owner as a temporary sub- stitute for a covered "auto" you own that is out of service because of its: a. Breakdown; b. Repair; c. Servicing; d. "Loss"; or e. Destruction. SECTION II —LIABILITY COVERAGE A. COVERAGE We will pay all sums an "insured" legally must pay as damages because of "bodily injury" or "property damage" to which this insurance applies, caused by an "accident" and resulting from the ownership, maintenance or use of a covered "auto". We will also pay all sums an "insured" legally must pay as a "covered pollution cost or expense" to which this insurance applies, caused by an "acci- dent" and resulting from the ownership, mainte- nance or use of covered "autos". However, we will only pay for the "covered pollution cost or ex- pense" if there is either "bodily injury" or "property damage" to which this insurance applies that is caused by the same "accident". We have the right and duty to defend any "insured" against a "suit" asking for such damages or a "covered pollution cost or expense". However, we have no duty to defend any "insured" against a "suit" seeking damages for "bodily injury" or "prop- erty damage" or a "covered pollution cost or ex- pense" to which this insurance does not apply. We may investigate and settle any claim or "suit" as we consider appropriate. Our duty to defend or settle ends when the Liability Coverage Limit of Insur- ance has been exhausted by payment of judg- ments or settlements. 1. WHO IS AN INSURED The following are "insureds": a. You for any covered "auto". b. Anyone else while using with your permis- sion a covered "auto" you own, hire or bor- row except: (1) The owner or anyone else from whom you hire or borrow a covered "auto". This exception does not apply if the covered "auto" is a "trailer" connected to a covered "auto" you own. (2) Your "employee" if the covered "auto" is owned by that "employee" or a member of his or her household. (3) Someone using a covered "auto" while he or she is working in a business of selling, servicing, repairing, parking or storing "autos" unless that business is yours. (4) Anyone other than your "employees", partners (if you are a partnership), members (if you are a limited liability company), or a lessee or borrower or any of their "employees", while moving property to or from a covered "auto". A partner (if you are a partnership), or a member (if you are a limited liability company) for a covered "auto" owned by him or her or a member of his or her household. c. Anyone liable for the conduct of an "in- sured" described above but only to the extent of that liability. 2. COVERAGE EXTENSIONS a. Supplementary Payments In addition to the Limit of Insurance, we will pay for the "insured": (1) All expenses we incur. (2) Up to $2,000 for cost of bail bonds (in- cluding bonds for related traffic law violations) required because of an "ac- cident" we cover. We do not have to furnish these bonds. The cost of bonds to release attach- ments in any "suit" against the "in- sured" we defend, but only for bond amounts within our Limit of Insurance. (4) All reasonable expenses incurred by the "insured" at our request, including actual loss of earning up to $250 a day because of time off from work. All costs taxed against the "insured" in any "suit" against the "insured" we defend. (6) All interest on the full amount of any judgment that accrues after entry of the judgment in any "suit" against the "insured" we defend, but our duty to pay interest ends when we have paid, offered to pay or deposited in court the (5) (3) (5) Page 2 of 10 CA 196 (7-97) Copyright, Insurance Services Office, Inc., 1996 CA 00 01 07 97 part of the judgment that is within our Limit of Insurance. b. Out -of -State Coverage Extensions While a covered "auto" is away from the state where it is licensed we will: (1) Increase the Limit of Insurance for Li- ability Coverage to meet the limits specified by a compulsory or financial responsibility law of the jurisdiction where the covered "auto" is being used. This extension does not apply to the limit or limits specified by any law governing motor carriers of passen- gers or property. (2) Provide the minimum amounts and types of other coverages, such as no-fault, required of out-of-state vehi- cles by the jurisdiction where the cov- ered "auto" is being used. We will not pay anyone more than once for the same elements of loss because of these extensions. B. EXCLUSIONS This insurance does not apply to any of the follow- ing: 1. EXPECTED OR INTENDED INJURY "Bodily injury' or "property damage" expected or intended from the standpoint of the "in- sured". 2. CONTRACTUAL Liability assumed under any contract or agreement. But this exclusion does not apply to liability for damages: a. Assumed in a contract or agreement that is an "insured contract" provided the "bod- ily injury" or "property damage" occurs subsequent to the execution of the con- tract or agreement; or b. That the "insured" would have in the ab- sence of the contract or agreement. 3. WORKERS' COMPENSATION Any obligation for which the "insured" or the "insured's" insurer may be held liable under any workers' compensation, disability benefits or unemployment compensation law or any similar law. 4. EMPLOYEE INDEMNIFICATION AND EM- PLOYER'S LIABILITY "Bodily injury" to: a. An "employee" of the "insured" arising out of and in the course of: (1) Employment by the "insured"; or (2) Performing the duties related to the conduct of the "insured's" business; or b. The spouse, child, parent, brother or sister of that "employee" as a consequence of paragraph a. above. This exclusion applies: (1) Whether the "insured" may be liable as an employer or in any other capac- ity; and (2) To any obligation to share damages with or repay someone else who must pay damages because of the injury. But this exclusion does not apply to "bodily injury" to domestic "employees" not enti- tled to workers' compensation benefits or to liability assumed by the "insured" under an "insured contract". For the purposes of the Coverage Form, a domestic "em- ployee" is a person engaged in household or domestic work performed principally in connection with a residence premises. 5. FELLOW EMPLOYEE "Bodily injury" to any fellow "employee" of the "insured" arising out of and in the course of the fellow "employee's" employment or while per- forming duties related to the conduct of your business. 6. CARE, CUSTODY OR CONTROL "Property damage" to or "covered pollution cost or expense" involving property owned or transported by the "insured" or in the "in- sured's" care, custody or control. But this ex- clusion does not apply to liability assumed under a sidetrack agreement. 7. HANDLING OF PROPERTY "Bodily injury" or "property damage" resulting from the handling of property: a. Before it is moved from the place where it is accepted by the "insured" for movement into or onto the covered "auto"; or b. After it is moved from the covered "auto" to the place where it is finally delivered by the "insured". 8. MOVEMENT OF PROPERTY BY MECHANI- CAL DEVICE "Bodily injury" or "property damage" resulting from the movement of property by a mechani- cal device (other than a hand truck) unless the device is attached to the covered "auto". 9. OPERATIONS "Bodily injury" or "property damage" arising out of the operation of any equipment listed in paragraphs 6.b and 6.c. of the definition of "mobile equipment". CA 196 (7-97) CA 00 01 07 97 Copyright, Insurance Services Office, Inc., 1996 Page 3 of 10 10. COMPLETED OPERATIONS "Bodily injury" or "property damage" arising out of your work after that work has been com- pleted or abandoned. In this exclusion, your work means: a. Work or operations performed by you or on your behalf; and b. Materials, parts or equipment furnished in connection with such work or operations. Your work includes warranties or representa- tions made at any time with respect to the fit- ness, quality, durability or performance of any of the items included in paragraphs a. or b. above. Your work will be deemed completed at the earliest of the following times: (1) When all of the work called for in your contract has been completed. (2) When all of the work to be done at the site has been completed if your contract calls for work at more than one site. When that part of the work done at a job site has been put to its intended use by any person or organization other than an- other contractor or subcontractor working on the same project. Work that may need service, maintenance, correction, repair or replacement, but which is otherwise complete, will be treated as com- pleted. 11. POLLUTION "Bodily injury' or "property damage" arising out of the actual, alleged or threatened discharge, dispersal, seepage, migration, release or es- cape of "pollutants": a. That are, or that are contained in any property that is: (1) Being transported or towed by, han- dled, or handled for movement into, onto or from, the covered "auto"; (2) Otherwise in the course of transit by or on behalf of the "insured"; or (3) Being stored, disposed of, treated or processed in or upon the covered "auto"; b. Before the "pollutants" or any property in which the "pollutants" are contained are moved from the place where they are ac- cepted by the "insured" for movement into or onto the covered "auto"; or c. After the "pollutants" or any property in which the "pollutants" are contained are moved from the covered "auto" to the (3) place where they are finally delivered, dis- posed of or abandoned by the "insured". Paragraph a. above does not apply to fu- els, lubricants, fluids, exhaust gases or other similar "pollutants" that are needed for or result from the normal electrical, hy- draulic or mechanical functioning of the covered "auto" or its parts, if: (1) The "pollutants" escape, seep, mi- grate, or are discharged, dispersed or released directly from an "auto" part designed by its manufacturer to hold, store, receive or dispose of such "pol- lutants"; and (2) The "bodily injury", "property damage" or "covered pollution cost or expense" does not arise out of the operation of any equipment listed in paragraphs 6.b. and 6.c. of the definition of "mo- bile equipment". Paragraphs b. and c. above of this exclu- sion do not apply to "accidents" that occur away from premises owned by or rented to an "insured" with respect to "pollutants" not in or upon a covered "auto" if: (1) The "pollutants" or any property in which the "pollutants" are contained are upset, overturned or damaged as a result of the maintenance or use of a covered "auto"; and (2) The discharge, dispersal, seepage, migration, release or escape of the "pollutants" is caused directly by such upset, overturn or damage. 12. WAR "Bodily injury" or "property damage" due to war, whether or not declared, or any act or condition incident to war. War includes civil war, insurrection, rebellion or revolution. This exclusion applies only to liability assumed un- der a contract or agreement. 13. RACING Covered "autos" while used in any professional or organized racing or demolition contest or stunting activity, or while practicing for such contest or activity. This insurance also does not apply while that covered "auto" is being prepared for such a contest or activity. C. LIMIT OF INSURANCE Regardless of the number of covered "autos", "in- sureds", premiums paid, claims made or vehicles involved in the "accident", the most we will pay for the total of all damages and "covered pollution cost or expense" combined, resulting from any one "ac- cident" is the Limit of Insurance for Liability Cover- age shown in the Declarations. Page 4 of 10 CA 196 (7-97) Copyright, Insurance Services Office, Inc., 1996 CA 00 01 07 97 All "bodily injury", "property damage" and "covered pollution cost or expense" resulting from continu- ous or repeated exposure to substantially the same conditions will be considered as resulting from one "accident". No one will be entitled to receive duplicate pay- ments for the same elements of "loss" under this Coverage Form and any Medical Payments Cov- erage Endorsement, Uninsured Motorists Cover- age Endorsement or Underinsured Motorists Coverage Endorsement attached to this Coverage Part. SECTION III —PHYSICAL DAMAGE COVERAGE A. COVERAGE 1. We will pay for "loss" to a covered "auto" or its equipment under: a. Comprehensive Coverage From any cause except: (1) The covered "auto's" collision with an- other object; or (2) The covered "auto's" overturn. b. Specified Causes of Loss Coverage Caused by: (1) Fire, lightning or explosion; (2) Theft; (3) Windstorm, hail or earthquake; (4) Flood; (5) Mischief or vandalism; or (6) The sinking, burning, collision or de- railment of any conveyance transport- ing the covered "auto". c. Collision Coverage Caused by: (1) The covered "auto's" collision with an- other object; or (2) The covered "auto's" overturn. 2. Towing We will pay up to the limit shown in the Decla- rations for towing and labor costs incurred each time a covered "auto" of the private pas- senger type is disabled. However, the labor must be performed at the place of disable- ment. 3. Glass Breakage —Hitting a Bird or Animal — Falling Objects or Missiles If you carry Comprehensive Coverage for the damaged covered "auto", we will pay for the following under Comprehensive Coverage: a. Glass breakage; b. "Loss" caused by hitting a bird or animal; and c. "Loss" caused by falling objects or mis- siles. However, you have the option of having glass breakage caused by a covered "auto's" colli- sion or overturn considered a "loss" under Col- lision Coverage. 4. Coverage Extension We will also pay up to $15 per day to a maxi- mum of $450 for temporary transportation ex- pense incurred by you because of the total theft of a covered "auto" of the private passen- ger type. We will pay only for those covered "autos" for which you carry either Comprehen- sive or Specified Causes of Loss Coverage. We will pay for temporary transportation ex- penses incurred during the period beginning 48 hours after the theft and ending, regardless of the policy's expiration, when the covered "auto" is returned to use or we pay for its "loss." B. EXCLUSIONS 1. We will not pay for "loss" caused by or result- ing from 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. Nuclear Hazard (1) The explosion of any weapon em- ploying atomic fission or fusion; or (2) Nuclear reaction or radiation or radio- active contamination, however caused. b. War or Military Action (1) War, including undeclared or civil war; (2) Warlike action by a military force, in- cluding action in hindering or defend- ing against an actual or expected attack, by any government, sovereign or other authority using military per- sonnel or other agents; or 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 "loss" to any covered "auto" while used in any professional or organized racing or demolition contest or stunting activity, or while practicing for such contest or activity. We will also not pay for "loss" to any covered "auto" while that covered "auto" is being pre- pared for such a contest or activity. 3. We will not pay for "loss" caused by or result- ing from any of the following unless caused by other "loss" that is covered by this insurance: (3) CA 196 (7-97) CA 00 01 07 97 Copyright, Insurance Services Office, Inc., 1996 Page 5 of 10 a. Wear and tear, freezing, mechanical or electrical breakdown. b. Blowouts, punctures or other road damage to tires. 4. We will not pay for "loss" to any of the follow- ing: a. Tapes, records, discs or other similar audio, visual or data electronic devices designed for use with audio, visual or data electronic equipment. b. Any device designed or used to detect speed measuring equipment such as ra- dar or laser detectors and any jamming apparatus intended to elude or disrupt speed measurement equipment. c. Any electronic equipment, without regard to whether this equipment is permanently installed, that receives or transmits audio, visual or data signals and that is not de- signed solely for the reproduction of sound. d. Any accessories used with the electronic equipment described in paragraph c. above. Exclusions 4.c. and 4.d. do not apply to: a. Equipment designed solely for the repro- duction of sound and accessories used with such equipment, provided such equipment is permanently installed in the covered "auto" at the time of the "loss" or such equipment is removable from a housing unit which is permanently installed in the covered "auto" at the time of the "loss", and such equipment is designed to be solely operated by use of the power from the "auto's" electrical system, in or upon the covered "auto"; or b. Any other electronic equipment that is: (1) Necessary for the normal operation of the covered "auto" or the monitoring of the covered "auto's" operating system; or (2) An integral part of the same unit housing any sound reproducing equipment described in a. above and permanently installed in the opening of the dash or console of the covered "auto" normally used by the manufac- turer for installation of a radio. C. LIMIT OF INSURANCE The most we will pay for "loss" in any one "acci- dent" is the lesser of: 1. The actual cash value of the damaged or sto- len property as of the time of the "loss"; or 2. The cost of repairing or replacing the damaged or stolen property with other property of like kind and quality. D. DEDUCTIBLE For each covered "auto", our obligation to pay for, repair, return or replace damaged or stolen prop- erty will be reduced by the applicable deductible shown in the Declarations. Any Comprehensive Coverage deductible shown in the Declarations does not apply to "loss" caused by fire or lightning. SECTION IV —BUSINESS AUTO CONDITIONS The following conditions apply in addition to the Com- mon Policy Conditions: A. LOSS CONDITIONS 1. APPRAISAL FOR PHYSICAL DAMAGE LOSS If you and we disagree on the amount of "loss", either may demand an appraisal of the "loss". In this event, each party will select a competent appraiser. The two appraisers will select a competent and impartial umpire. The appraisers will state separately the actual cash value and amount of "loss". If they fail to agree, they will submit their differences to the umpire. A decision agreed to by any two will be binding. Each party will: a. Pay its chosen appraiser; and b. Bear the other expenses of the appraisal and umpire equally. If we submit to an appraisal, we will still retain our right to deny the claim. 2. DUTIES IN THE EVENT OF ACCIDENT, CLAIM, SUIT OR LOSS We have no duty to provide coverage under this policy unless there has been full compli- ance with the following duties: a. In the event of "accident", claim, "suit" or "loss", you must give us or our authorized representative prompt notice of the "acci- dent" or "loss". Include: (1) How, when and where the "accident" or "loss" occurred; (2) The "insured's" name and address; and (3) To the extent possible, the names and addresses of any injured persons and witnesses. b. Additionally, you and any other involved "insured" must: (1) Assume no obligation, make no pay- ment or incur no expense without our consent, except at the "insured's" own cost. Page 6 of 10 CA 196 (7-97) Copyright, Insurance Services Office, Inc., 1996 CA 00 01 07 97 (2) Immediately send us copies of any re- quest, demand, order, notice, sum- mons or legal paper received concerning the claim or "suit". (3) Cooperate with us in the investigation or settlement of the claim or defense against the "suit". (4) Authorize us to obtain medical records or other pertinent information. (5) Submit to examination, at our ex- pense, by physicians of our choice, as often as we reasonably require. c. If there is "loss" to a covered "auto" or its equipment you must also do the following: (1) Promptly notify the police if the cov- ered "auto" or any of its equipment is stolen. (2) Take all reasonable steps to protect the covered "auto" from further dam- age. Also keep a record of your ex- penses for consideration in the settlement of the claim. Permit us to inspect the covered "auto" and records proving the "loss" before its repair or disposition. (4) Agree to examinations under oath at our request and give us a signed statement of your answers. 3. LEGAL ACTION AGAINST US No one may bring a legal action against us un- der this Coverage Form until: a. There has been full compliance with all the terms of this Coverage Form; and b. Under Liability Coverage, we agree in writing that the "insured" has an obligation to pay or until the amount of that obligation has finally been determined by judgment after trial. No one has the right under this policy to bring us into an action to deter- mine the "insured's" liability. 4. LOSS PAYMENT —PHYSICAL DAMAGE COVERAGES At our option we may: a. Pay for, repair or replace damaged or stolen property; b. Return the stolen property, at our expense. We will pay for any damage that results to the "auto" from the theft; or c. Take all or any part of the damaged or stolen property at an agreed or appraised value. (3) 5. TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US If any person or organization to or for whom we make payment under this Coverage Form has rights to recover damages from another, those rights are transferred to us. That person or organization must do everything necessary to secure our rights and must do nothing after "accident" or "loss" to impair them. B. GENERAL CONDITIONS 1. BANKRUPTCY Bankruptcy or insolvency of the "insured" or the "insured's" estate will not relieve us of any obligations under this Coverage Form. 2. CONCEALMENT, MISREPRESENTATION OR FRAUD This Coverage Form is void in any case of fraud by you at any time as it relates to this Coverage Form. It is also void if you or any other "insured", at any time, intentionally con- ceal or misrepresent a material fact concern- ing: a. This Coverage Form; b. The covered "auto"; c. Your interest in the covered "auto"; or d. A claim under this Coverage Form. 3. LIBERALIZATION If we revise this Coverage Form to provide more coverage without additional premium charge, your policy will automatically provide the additional coverage as of the day the revi- sion is effective in your state. 4. NO BENEFIT TO BAILEE —PHYSICAL DAMAGE COVERAGES We will not recognize any assignment or grant any coverage for the benefit of any person or organization holding, storing or transporting property for a fee regardless of any other pro- vision of this Coverage Form. 5. OTHER INSURANCE a. For any covered "auto" you own, this Cov- erage Form provides primary insurance. For any covered "auto" you don't own, the insurance provided by this Coverage Form is excess over any other collectible insur- ance. However, while a covered "auto" which is a "trailer" is connected to another vehicle, the Liability Coverage this Cover- age Form provides for the "trailer" is: (1) Excess while it is connected to a mo- tor vehicle you do not own. (2) Primary while it is connected to a cov- ered "auto" you own. b. For Hired Auto Physical Damage Cover- age, any covered "auto" you lease, hire, rent or borrow is deemed to be a covered CA 196 (7-97) CA 00 01 07 97 Copyright, Insurance Services Office, Inc., 1996 Page 7 of 10 "auto" you own. However, any "auto" that is leased, hired, rented or borrowed with a driver is not a covered "auto". c. Regardless of the provisions of paragraph a. above, this Coverage Form's Liability Coverage is primary for any liability as- sumed under an "insured contract". d. When this Coverage Form and any other Coverage Form or policy covers on the same basis, either excess or primary, we will pay only our share. Our share is the proportion that the Limit of Insurance of our Coverage Form bears to the total of the limits of all the Coverage Forms and policies covering on the same basis. 6. PREMIUM AUDIT a. The estimated premium for this Coverage Form is based on the exposures you told us you would have when this policy began. We will compute the final premium due when we determine your actual exposures. The estimated total premium will be cred- ited against the final premium due and the first Named Insured will be billed for the balance, if any. If the estimated total pre- mium exceeds the final premium due, the first Named Insured will get a refund. b. If this policy is issued for more than one year, the premium for this Coverage Form will be computed annually based on our rates or premiums in effect at the begin- ning of each year of the policy. 7. POLICY PERIOD, COVERAGE TERRITORY Under this Coverage Form, we cover "acci- dents" and "losses" occurring: a. During the policy period shown in the Declarations; and b. Within the coverage territory. The coverage territory is: a. The United States of America; b. The territories and possessions of the United States of America; c. Puerto Rico; and d. Canada. We also cover "loss" to, or "accidents" involv- ing a covered "auto" while being transported between any of these places. 8. TWO OR MORE COVERAGE FORMS OR POLICIES ISSUED BY US If this Coverage Form and any other Coverage Form or policy issued to you by us or any company affiliated with us apply to the same "accident", the aggregate maximum Limit of Insurance under all the Coverage Forms or policies shall not exceed the highest applicable Limit of Insurance under any one Coverage Form or policy. This condition does not apply to any Coverage Form or policy issued by us or an affiliated company specifically to apply as excess insurance over this Coverage Form. SECTION V —DEFINITIONS A. "Accident" includes continuous or repeated expo- sure to the same conditions resulting in "bodily in- jury" or "property damage". B. "Auto" means a land motor vehicle, "trailer" or semitrailer designed for travel on public roads but does not include "mobile equipment". C. "Bodily injury" means bodily injury, sickness or dis- ease sustained by a person including death re- sulting from any of these. D. "Covered pollution cost or expense" means any cost or expense arising out of: 1. Any request, demand or order; or 2. Any claim or "suit" by or on behalf of a gov- ernmental authority demanding that the "insured" or others test for, monitor, clean up, remove, contain, treat, detoxify or neutralize or in any way respond to, or assess the effects of "pollutants". "Covered pollution cost or expense" does not in- clude any cost or expense arising out of the actual, alleged or threatened discharge, dispersal, seep- age, migration, release or escape of "pollutants": a. That are, or that are contained in any property that is: (1) Being transported or towed by, handled, or handled for movement into, onto or from the covered "auto"; (2) Otherwise in the course of transit by or on behalf of the "insured"; (3) Being stored, disposed of, treated or proc- essed in or upon the covered "auto"; or b. Before the "pollutants" or any property in which the "pollutants" are contained are moved from the place where they are accepted by the "in- sured" for movement into or onto the covered "auto"; or c. After the "pollutants" or any property in which the "pollutants" are contained are moved from the covered "auto" to the place where they are finally delivered, disposed of or abandoned by the "insured". Paragraph a. above does not apply to fuels, lubricants, fluids, exhaust gases or other simi- lar "pollutants" that are needed for or result from the normal electrical, hydraulic or me- chanical functioning of the covered "auto" or its parts, if: Page 8 of 10 CA 196 (7-97) Copyright, Insurance Services Office, Inc., 1996 CA 00 01 07 97 (1) The "pollutants" escape, seep, migrate, or are discharged, dispersed or released di- rectly from an "auto" part designed by its manufacturer to hold, store, receive or dispose of such "pollutants"; and (2) The "bodily injury", "property damage" or "covered pollution cost or expense" does not arise out of the operation of any equipment listed in paragraphs 6.b. or 6.c. of the definition of "mobile equipment". Paragraphs b. and c. above do not apply to "accidents" that occur away from premises owned by or rented to an "insured" with re- spect to "pollutants" not in or upon a covered "auto" if: (1) The "pollutants" or any property in which the "pollutants" are contained are upset, overturned or damaged as a result of the maintenance or use of a covered "auto"; and (2) The discharge, dispersal, seepage, migra- tion, release or escape of the "pollutants" is caused directly by such upset, overturn or damage. E. "Employee" includes a "leased worker". "Em- ployee" does not include a "temporary worker". F. "Insured" means any person or organization quali- fying as an insured in the Who Is An Insured provi- sion of the applicable coverage. Except with respect to the Limit of Insurance, the coverage af- forded applies separately to each insured who is seeking coverage or against whom a claim or "suit" is brought. G. "Insured contract" means: 1. A lease of premises; 2. A sidetrack agreement; 3. Any easement or license agreement, except in connection with construction or demolition op- erations on or within 50 feet of a railroad; 4. An obligation, as required by ordinance, to in- demnify a municipality, except in connection with work for a municipality; 5. That part of any other contract or agreement pertaining to your business (including an in- demnification of a municipality in connection with work performed for a municipality) under which you assume the tort liability of another to pay for "bodily injury" or "property damage" to a third party or organization. Tort liability means a liability that would be imposed by law in the absence of any contract or agreement; 6. That part of any contract or agreement entered into, as part of your business, pertaining to the rental or lease, by you or any of your "employ- ees", of any "auto". However, such contract or CA 196 (7-97) CA 00 01 07 97 H. J. agreement shall not be considered an "insured contract" to the extent that it obligates you or any of your "employees" to pay for "property damage" to any "auto" rented or leased by you or any of your "employees". An "insured contract" does not include that part of any contract or agreement: a. That indemnifies any person or organiza- tion for "bodily injury" or "property damage" arising out of construction or demolition operations, within 50 feet of any railroad property and affecting any railroad bridge or trestle, tracks, roadbeds, tunnel, under- pass or crossing; or b. That pertains to the loan, lease or rental of an "auto" to you or any of your "employ- ees", if the "auto" is loaned, leased or rented with a driver; or c. That holds a person or organization en- gaged in the business of transporting property by "auto" for hire harmless for your use of a covered "auto" over a route or territory that person or organization is authorized to serve by public authority. "Leased worker" means a person leased to you by a labor leasing firm under an agreement between you and the labor leasing firm, to perform duties related to the conduct of your business. "Leased worker" does not include a "temporary worker". "Loss" means direct and accidental loss or dam- age. "Mobile equipment" means any of the following types of land vehicles, including any attached ma- chinery or equipment: 1. Bulldozers, farm machinery, forklifts and other vehicles designed for use principally off public roads; 2. Vehicles maintained for use solely on or next to premises you own or rent; 3. Vehicles that travel on crawler treads; 4. Vehicles, whether self-propelled or not, main- tained primarily to provide mobility to perma- nently mounted: a. Power cranes, shovels, loaders, diggers or drills; or b. Road construction or resurfacing equip- ment such as graders, scrapers or rollers. 5. Vehicles not described in paragraphs 1., 2., 3., or 4. above that are not self-propelled and are maintained primarily to provide mobility to permanently attached equipment of the fol- lowing types: a. Air compressors, pumps and generators, including spraying, welding, building Copyright, Insurance Services Office, Inc., 1996 Page 9 of 10 cleaning, geophysical exploration, lighting and well servicing equipment; or b. Cherry pickers and similar devices used to raise or lower workers. 6. Vehicles not described in paragraphs 1., 2., 3. or 4. above maintained primarily for purposes other than the transportation of persons or cargo. However, self-propelled vehicles with the following types of permanently attached equipment are not "mobile equipment" but will be considered "autos": a. Equipment designed primarily for: (1) Snow removal; (2) Road maintenance, but not construc- tion or resurfacing; or (3) Street cleaning; b. Cherry pickers and similar devices mounted on automobile or truck chassis and used to raise or lower workers; and c. Air compressors, pumps and generators, including spraying, welding, building cleaning, geophysical exploration, lighting or well servicing equipment. K. "Pollutants" means any 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. L. "Property damage" means damage to or loss of use of tangible property. M. "Suit" means a civil proceeding in which: 1. Damages because of "bodily injury" or "prop- erty damage"; or 2. A "covered pollution cost or expense", to which this insurance applies, are alleged. "Suit" includes: a. An arbitration proceeding in which such dam- ages or "covered pollution costs or expenses" are claimed and to which the "insured" must submit or does submit with our consent; or b. Any other alternative dispute resolution pro- ceeding in which such damages or "covered pollution costs or expenses" are claimed and to which the "insured" submits with our con- sent. N. "Temporary worker" means a person who is fur- nished to you for a finite time period to support or supplement your workforce in special work situa- tions such as "employee" absences, temporary skill shortages and seasonal workloads. 0. "Trailer" includes semitrailer. CA 196 (7-97) -^^�Q Services Office, Inc., 1996 CA 00 01 07 97 POLICY NUMBER 651-011234 COMMERCIAL AUTO CA 22 10 01 99 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. FLORIDA PERSONAL INJURY PROTECTION For a covered "auto" licensed or principally garaged in, or "garage operations" conducted in, Florida, this endorsement modifies insurance provided under the following: BUSINESS AUTO COVERAGE FORM GARAGE COVERAGE FORM MOTOR CARRIER COVERAGE FORM TRUCKERS COVERAGE FORM With respect to coverage provided by this endorsement, the provisions of the Coverage Form apply unless modified by the endorsement This endorsement changes the policy effective on the inception date of the policy unless another date is indicated below. Endorsement Effective: Countersigned By: (Authorized Representative) Named Insured: VILLAGE OF KEY BISCAYNE We agree with the "named insured", subject to all the provisions of this endorsement and to all of the provisions of the policy except as modified herein, as follows that: SCHEDULE Any Personal Injury Protection deductible shown in the Declarations of $ is applicable to the following "named insured" only. [ ] each "named insured" and each dependent - "family member". [] Work loss for "named insured" does not apply. [] Work loss for "named insured" and dependent - "family member" does not apply. [] Coverage reduced by military benefits for "named insured" and dependent "family member". Benefits Limit Per Person Total aggregate limit Up to $10,000 Death Benefits $5,000 (included in aggregate) Medical expenses 80% of medical expenses subject to total aggregate limit Work loss 60% of work loss subject to total aggregate limit Replacement services expense subject to total aggregate limit (If no entry appears above, information required to complete this endorsement will be shown in the Declarations as applicable to this endorsement.) CA 22 10 01 99 Page 1 of 6 ('onvriiht Insurance Services Office Inc 1998 A. Coverage We will pay Personal Injury Protection benefits in accordance with the Florida Motor Vehicle No -Fault Law to or for an "insured " who sustains "bodily injury" in an "accident" arising out of the ownership, maintenance or use of a "motor vehicle ". Subject to the limits shown in the schedule, these Personal Injury Protection benefits consist of the following: 1. Medical Expense All reasonable expenses for necessary medical, surgical, x-ray, dental , ambulance, hospital, professional nursing and rehabilitative services, for prosthetic devices and for necessary remedial treatment and services recognized and permitted under the laws of the state for an "insured" who relies upon spiritual means through prayer alone for healing in accordance with his or her religious beliefs; 2. Replacement Services Expenses With respect to the period of disability of the injured person all expenses reasonably incurred in obtaining from others ordinary and necessary services in lieu of those that, but for such injury, the injured person would have performed without income for the benefit of his or her household, 3. Work Loss With respect to the period of disability of the injured person, any loss of income and earning capacity from inability to work proximately caused by the injury sustained by the injured person; and 4 Death Benefits B. Who Is An Insured 1. The "named insured". 2 If the "named insured" is an individual, any "family member" 3. Any other person while "occupying" a covered "motor vehicle" with the "named insured's" consent 4. A "pedestrian" if the "accident" involves the covered "motor vehicle". C. Exclusions We will not pay Personal Injury Protection benefits for "bodily injury". 1. Sustained by the "named insured" or any "family member" while "occupying" any " motor vehicle" owned by the "named insured" that is not a covered "motor vehicle"; 2. Sustained by any person while operating the covered "motor vehicle" without the "named insured's" expressed or implied consent; 3. Sustained by any person: a. Caused by his or her own intentional act; or b. While committing a felony. 4. To the "named insured" or any "family member" for work loss if an entry in the Schedule or Declarations indicates that coverage for work loss does not apply; 5. To any "pedestrian", other than the "named insured" or any "family member ", not a legal resident of the state of Florida; CA 22 10 01 99 Page 2 of 6 r'..,,,,r; „1,r T.,c,,, o.,rn Co..,:,.0 own.— r..,, 1 (C10 6. To any person, other than the "named insured" if that person is the "owner" of a "motor vehicle" for which security is required under the Florida Motor Vehicle No -Fault Law; 7. To any person, other than the "named insured", or any "family member", who is entitled to personal injury protection benefits from the owner of a "motor vehicle" that is not a covered "motor vehicle" under this insurance or from the "owner's " insurer, or 8. To any person who sustains "bodily injury" while "occupying" a "motor vehicle " located for use as a residence or premises . 1. Regardless of the number of persons insured, policies or bonds applicable, premiums paid, vehicles involved or claims made , the total aggregate limit of personal injury protection benefits available under the Florida Motor Vehicle No - Fault Law from all sources combined, including this policy, for all "loss" and expense incurred by or on behalf of any one person who sustains "bodily injury" as the result of any one "accident", shall be $10,000, provided that payment for Death benefits included within the total aggregate, shall be $5,000. 2. Any amount paid under this coverage will be reduced by the amount of benefits an injured person has been paid or is entitled to be paid for the same elements of "loss" under any workers' compensation law. 3. If personal injury protection benefits, under the Florida Motor Vehicle No -Fault Law, have been received from any insurer for the same elements of loss and expense benefits available under this policy, we will not make duplicate payments to or for the benefit of the injured person. The insurer paying the benefits shall be entitled to recover from us its pro rata share of the benefits paid and expenses incurred in handling the claim. 4. The deductible amount shown in the Schedule will be deducted from the lesser of: a. The total benefits otherwise payable under this insurance to any one person in any one "accident"; or b The applicable limit of our liability The total benefits otherwise payable means the total amount of medical expenses , work loss, and replacement services expenses after the application of any percentage limitation set forth in the Schedule. The deductible does not apply to the death benefit. 5. If an entry in the Schedule so indicates, any amount payable under this insurance to the "named insured" or dependent "family member' will be reduced by any benefits payable by the Federal Government to active or retired military personnel and their dependent "family member". If those benefits are not available at the time of "loss", we will have the right to recompute and charge the appropriate premium. E. Changes In Conditions The Conditions are changed for Personal Injury Protection as follows: 1. Duties In The Event Of Accident, Claim, Suit Or Loss In the event of an "accident", the "named insured" must give us or our authorized representative prompt written notice of the "accident". If any injured person or his or her legal representative institutes a legal action to recover damages for "bodily injury" against a third party, a copy of the summons, complaint or other process served in connection with that legal action must be forwarded to us as soon as possible by the injured person or his or her legal representative. 2. Legal Action Against Us is changed by adding the following. No one may bring a legal action against us under this insurance until 30 days after the required notice of "accident" and reasonable proof of claim have been filed with us. CA 22 10 01 99 Page 3 of 6 Copyright, Insurance Services Office, Inc., 1998 3. Transfer Of Rights Of Recovery Against Others To Us is replaced by the following: Unless prohibited by the Florida Motor Vehicle No -Fault Law, in the event of payment to or for the benefit of any injured person under this coverage: a We will be reimbursed for those payments, not including reasonable attorneys' fees and other reasonable expenses, from the proceeds of any settlement or judgment resulting from any right of recovery of the injured person against any person or organization legally responsible for the "bodily injury" from which the payment arises. We will also have a lien on those proceeds. b. If any person to or for whom we pay benefits has rights to recover benefits from another, those rights are transferred to us . That person must do everything necessary to secure our rights and must do nothing after loss to impair them. c. The company providing personal injury protection benefits on a private passenger "motor vehicle", as defined in the Florida Motor Vehicle No- Fault Law, shall be entitled to reimbursement to the extent of the payment of personal injury protection benefits from the "owner" or the insurer of the "owner" of a commercial "motor vehicle", as defined in the Florida Motor Vehicle No- Fault Law, if such injured person sustained the injury while "occupying", or while a "pedestrian" through being struck by, such commercial "motor vehicle". F. Additional Conditions The following Conditions are added: 1. Arbitration If a person who provides medical services or supplies has agreed to accept assignment of personal injury protection benefits , any claims dispute involving medical expenses between the company and that provider shall be decided by binding arbitration in accordance with the provisions of the Florida Arbitration Code. The prevailing party shall be entitled to attorney's fees and costs. 2 Mediation a. In any claim filed by an "insured" with us for (1) "Bodily injury" in an amount of $10,000 or less, arising out of the ownership, operation, use or maintenance of a covered "auto"; (2) "Property damage" in any amount, arising out of the ownership, operation , maintenance or use of a covered "auto", or (3) "Loss" to a covered "auto" or its equipment, in any amount, either party may make a written demand for mediation of the claim prior to the institution of litigation. b. A written request for mediation must be filed with the Florida Department of Insurance on an approved form, which may be obtained from the Florida Department of Insurance. c The request must state: (1) Why mediation is being requested. (2) The issues in dispute, which are to be mediated. d. The Florida Department of Insurance will randomly select mediators. Each party may reject one mediator, either before or after the opposing side has rejected a mediator. The mediator will notify the parties of the date, time and place of the mediation conference. The mediation conference will be held within 45 days of the request for mediation. The conference will be held by telephone, if feasible. Participants in the mediation conference must have the authority to make a binding decision, and must mediate in good faith. Each party will bear the expenses of the mediation equally, unless the mediator determines that one party has not mediated in good faith CA 22 10 01 99 Page 4 of 6 Copyright, Insurance Services Office, Inc., 1998 e. Only one mediation may be requested for each claim unless all parties agree to further mediation. A party demanding mediation shall not be entitled to demand or request mediation after a suit is filed relating to the same facts already mediated . f. The mediation shall be conducted as an informal process and formal rules of evidence and procedures need not be observed . 3. Modification Of Policy Coverages Any Automobile Medical Payments Coverage and any Uninsured Motorists Coverage afforded by the policy shall be excess over any personal injury protection benefits paid or payable. Regardless of whether the full amount of personal injury protection benefits has been exhausted, any Medical Payments Coverage afforded by the policy shall pay the portion of any claim for personal injury protection medical expenses which are otherwise covered but not payable due to the limitation of 80% of medical expense benefits but shall not be payable for the amount of the deductible selected 4. Proof Of Claim; Medical Reports And Examinations; Payment Of Claim Withheld As soon as practicable, the person making claim shall give to us written proof of claim, under oath if required, which may include full particulars of the nature and extent of the injuries and treatment received and contemplated, and such other information as may assist us in determining the amount due and payable. Such person shall submit to mental and physical examinations at our expense when and as often as we may reasonably require and a copy of the medical report shall be forwarded to such person if requested. If the person unreasonably refuses to submit to an examination, we will not be liable for subsequent personal injury protection benefits. Whenever a person making claim is charged with committing a felony, we shall withhold benefits until, at the trial level, the prosecution makes a formal entry on the record that it will not prosecute the case against the person, the charge is dismissed or the person is acquitted. 5. Provisional Premium In the event of any change in the rules, rates, rating plan, premiums or minimum premiums applicable to the insurance afforded , because of an adverse judicial finding as to the constitutionality of any provisions of the Florida Motor Vehicle No - Fault Law providing for the exemption of persons from tort liability, the premium stated in the declarations for any Liability, Medical Payments and Uninsured Motorists insurance shall be deemed provisional and subject to recomputation . If this policy is a renewal policy, such recomputation shall also include a determination of the amount of any return premium previously credited or refunded to the "named insured" pursuant to Sections 627.730 through 627.7415 (1988) of the Florida Motor Vehicle No- Fault Law with respect to insurance afforded under a previous policy. If the final premium thus recomputed exceeds the premium shown in the Declarations , the "named insured" shall pay to us the excess as well as the amount of any return premium previously credited or refunded. 6. Special Provisions For Rented Or Leased Vehicles Notwithstanding any provision of this coverage to the contrary, if a person is injured while "occupying" or through being struck by, a "motor vehicle" rented or leased under a rental or lease agreement, the personal injury protection afforded under the lessor's policy shall be primary, unless the face of the agreement contains, in at least 10 -point type, the following language: The valid and collectible personal injury protection insurance of any authorized rental or leasing driver is primary for the limits of personal injury protection coverage required by Section 627.736, Florida Statutes 7. Policy Period; Territory The insurance under this Section applies only to "accidents" which occur during the policy period: a. In the state of Florida; CA 22 10 01 99 Page 5 of 6 b. As respects the "named insured" or any "family member", while "occupying" the covered "motor vehicle" outside the state of Florida but within the United States of America, its territories or possessions or Canada; and c As respects the "named insured", while "occupying" a "motor vehicle " of which a "family member" is the "owner" and for which security is maintained under the Florida Motor Vehicle No- Fault Law outside the state of Florida but within the United States of America, its territories or possessions or Canada. G. Additional Definitions As used in this endorsement: 1 "Motor vehicle" means any self-propelled vehicle with four or more wheels which is of a type both designed and required to be licensed for use on the highways of Florida and any trailer or semitrailer designed for use with such ehicle; However, "motor vehicle" does not include: a A mobile home; b Any "motor vehicle" which is used in mass transit, other than public school transportation, and designed to transport more than five passengers exclusive of the operator of the motor vehicle and which is owned by a municipality, a transit authority, or a political subdivision of the state 2 "Family member" means a person related to the "named insured" by blood, marriage or adoption including a ward or foster child who is a resident of the same household as the "named insured". 3 "Named insured" means the person or organization named in the Declarations of the policy and, if an individual, shall include the spouse if a resident of the same household. 4 "Occupying" means in or upon or entering into or alighting from. 5 "Owner" means a person or organization who holds the legal title to a "motor vehicle", and also includes: a A debtor having the right to possession, in the event a "motor vehicle " is the subject of a security agreement; b. A lessee having the right to possession, in the event a "motor vehicle " is the subject of a lease with option to purchase and such lease agreement is for a period of six months or more; and c. A lessee having the right to possession, in the event a "motor vehicle" is the subject of a lease without option to purchase , and such lease is for a period of six months or more, and the lease agreement provides that the lessee shall be responsible for securing insurance. 6 "Pedestrian" means a person while not an occupant of any self - propelled vehicle. CA 22 10 01 99 Page 6 of 6 4 GE catritat Comm ENDORSEMENT THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. FLORIDA LEGISLATIVE CLAIM BILL ENDORSEMENT AUTOMOBILE This endorsement modifies the following coverage forms: PUBLIC ENTITY EXCESS AUTO LIABILITY COVERAGE FORM BUSINESS AUTO COVERAGE FORM The following is added to Section II - Limits of Insurance: The most we will pay is limited by: a. The amount indicated when the Florida Legislature enacts an appropriate claim bill in accordance with Section 768-28 (5), Florida Statutes. b. The amount determined by a court of competent jurisdiction for liable action taken outside the state of Florida or the liability limitation included in Section 768-28 (5), Florida Statutes, is inapplicable. CXCSA.1000 08/98 Page 1 of 1 CORMS. A GE CapilJJ Company COMMERCIAL AUTO CA 01 28 05 94 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. FLORIDA CHANGES This endorsement modifies insurance provided under the following: BUSINESS AUTO COVERAGE FORM GARAGE COVERAGE FORM MOTOR CARRIER COVERAGE FORM TRUCKERS COVERAGE FORM BUSINESS AUTO PHYSICAL DAMAGE COVERAGE FORM With respect to coverage provided by this endorsement, the provisions of the Coverage Form apply unless modified by the endorsement. A. PHYSICAL DAMAGE COVERAGE is changed as follows: 1. No deductible applies to "loss" to glass used in the windshield 2 All other PHYSICAL DAMAGE COVERAGE provisions will apply. 3. Paragraph 1. of LOSS CONDITIONS, APPRAISAL FOR PHYSICAL DAMAGE LOSS, is replaced by the following. 1 APPRAISAL FOR PHYSICAL DAMAGE LOSS If you and we disagree on the amount of "loss", either may demand an appraisal of the "loss". upon notice of a demand for appraisal, the opposing party may, prior to appraisal, demand mediation of the dispute in accordance with the mediation provision contained in this endorsement. The mediation must be completed before a demand for appraisal can be made. In this event , each party will select a competent appraiser. The two appraisers will select a competent and impartial umpire. The appraisers will state separately the actual cash value and amount of "loss". If they fail to agree, they will submit their differences to the umpire. A decision agreed to by any two will be binding. Each party will: a Pay its chosen appraiser, and b. Bear the other expenses of the appraisal and umpire equally. If we submit to an appraisal, we will still retain our right to deny the claim. B. The following condition is added to the General Conditions: B. MEDIATION I. In any claim filed by an "insured" with us for: a "Bodily injury" in an amount of $10,000 or less, arising out of the ownership, operation, use or maintenance of a covered "auto"; b. "Property damage" in any amount, arising out of the ownership, operation , maintenance or use of a covered "auto", or CA 01 28 05 94 Page 1 of 2 Coovrieht Insurance Services Office Inc 1991 c "Loss" to a covered "auto" or its equipment, in any amount either party may make a written demand for mediation of the claim prior to the institution of litigation. 2. A written request for mediation must be filed with the Florida Department of Insurance on an approved form, which may be obtained from the Florida Department of Insurance 3. The request must state: a. Why mediation is being requested. b. The issues in dispute, which are to be mediated. 4 The Florida Department of Insurance will randomly select mediators. Each party may reject one mediator, either before or after the opposing side has rejected a mediator. The mediator will notify the parties of the date, time and place of the mediation conference. The mediation conference will be held within 45 days of the request for mediation. The conference will be held by telephone if feasible. Participants in the mediation conference must have the authority to make a binding decision, and must mediate in good faith. Each party will bear the expenses of the mediation equally, unless the mediator determines that one party has not mediated in good faith. 5. Only one mediation may be requested for each claim unless all parties agree to further mediation. A party demanding mediation shall not be entitled to demand or request mediation after a suit is filed relating to the same facts already mediated . 6. The mediation shall be conducted as an informal process and formal rules of evidence and procedures need not be observed . CA 01 28 05 94 Page 2 of 2 Copyright, Insurance Services Office, Inc., 1993 CORGIS A GE Capital Company MUNICIPALITIES PACKAGE POLICY TABLE OF CONTENTS DECLARATIONS PAGES -Policy Number -Date of Issue -Policy Period -Named Insured and Address -Producer and Address -Form of Business -Business Description -Coverages and Advance Premiums -Total Advance Premium BEGINNING ON PAGE PART I - PROPERTY COVERAGE PART A. COVERAGE B. LIMITS OF INSURANCE C. DEDUCTIBLES D. COVERED PROPERTY 1. Buildings and Structures 2. Personal Property E. SPECIAL PROPERTY COVERAGES 1. Business Income 2. Extra Expense 3. Valuable Papers 4. Accounts Receivable 5. Computer Equipment and Electronic Media 6. Fine Arts 7. Mobile, Portable or Contractor's Equipment 8. Miscellaneous Property 9. Trees, Shrubs and Landscape Planting 10. Golf Course Greens and Tees 11. Food Spoilage 12. Animals 13. Paved Surfaces 14. Commandeered Property or Impouned Property 15. Emergency Service Portable Equipment 16. Communications Equipment 17. Vacant Buildings 18. Buildings Under Construction 19. Money and Securities F. PROPERTY NOT COVERED G. EXTENSIONS OF COVERAGE 1. Preservation of Property PART I - PROPERTY COVERAGE PART, CONT'D. 1 1 1 2 2 3 3 4 4 4 4 4 5 5 6 6 6 6 6 7 7 8 8 8 8 9 9 10 10 BEGINNING ON PAGE 2. Fire Department Service Charge 10 3. Repair of Theft Damage to Non -Owned Buildings 10 4. Taking Inventory After a Loss Occurrence 11 5. Debris Removal 11 6. Demolition 11 7. Increased Cost Of Construction 11 8. Fire Protection Devices 12 9. Lock Replacement 12 10. Pollutant Clean Up and Removal 12 11. Arson and Crime Reward 13 12. Utility Interruption 13 13. Sewer Back Up During Flooding 13 H. LIMITATIONS TO COVERED PROPERTY 13 I. COVERED CAUSES OF LOSS 14 J. EXCLUDED RISKS OF DIRECT PHYSICAL LOSS 14 K. PROPERTY CONDITIONS 20 1. Policy Period and Coverage Territory 21 2. Transfer of Rights of Recovery Against Others21 3. Reporting of Values To This Company 21 4. Loss Conditions 22 5. Concealment or Fraud 24 6. Legal Action Against Us 24 7. No Benefit To Bailee 24 8. Insurance Under More Than One Coverage 24 9. Other Insurance 24 10. Excess Insurance 24 11. Joint Loss Agreement 24 12. Recovered Property 25 13. Valuation 25 14. Insurance To Value 29 15. Agreed Amount 30 16. Mortgage Holder Provisions 30 17. Loss Payable Provisions 31 18. Unintentional Errors and Omissions 32 L. PROPERTY DEFINITIONS 32 PART II - GENERAL LIABILITY, LAW ENFORCEMENT LIABILITY AND MEDICAL PAYMENTS COVERAGE PARTS 36 SECTION I - COVERAGES 36 COVERAGE A. GENERAL LIABILITY AND LAW ENFORCEMENT LIABILITY 36 1. Insuring Agreement - GENERAL LIABILITY 36 2. Insuring Agreement - LAW ENFORCEMENT LIABILITY 38 3. Exclusions Applicable to COVERAGE A. 38 a. Expected or Intended Injury 39 b. Contractual Liability 39 c. Workers' Compensation and Similar Laws 39 d. Employment -Related Practices 39 e. Employer's Liability 40 f. Pollution 40 g. Auto or Watercraft 42 PART II - GENERAL LIABILITY, LAW ENFORCEMENT LIABILITY AND MEDICAL PAYMENTS COVERAGE PARTS, CONT'D BEGINNING ON PAGE h. Aircraft and Airports 42 i. Mobile Equipment 42 j. Damage to Property 43 k. Asbestos 43 I. Nuclear 44 m. Your Product 45 n. Your Work 45 o. Impaired Property 45 p. Withdrawal 46 q. Eminent Domain 46 r. Health Care Facility 46 s. Medical Professionals' Liability 46 t. Publication and Unfair Trade Practices 46 u. Advertising 47 v. War 47 COVERAGE B. MEDICAL PAYMENTS 47 1. Insuring Ageement 47 2. Exclusions 48 SUPPLEMENTARY PAYMENTS - COVERAGE A 48 SECTION II - WHO IS AN INSURED 50 SECTION III - LIMITS OF INSURANCE 51 SECTION IV - COMMERCIAL LIABILITY CONDITIONS 52 1. Duties In The Event Of Occurrence, Offense, Claim Or Suit 53 2. Legal Action Against Us 53 3. Other Insurance 53 4. Representations 54 5. Separation Of Insureds 54 6. Transfer Of Rights Of Recovery Against Others To Us 54 7. When We Do Not Renew 54 8. Waiver Of Governmental Immunity 54 9. Recovered Property 54 SECTION V - DEFINITIONS 55 PART III - COMMON POLICY CONDITIONS A. CANCELLATION 61 B. NONRENEWAL 61 C. CHANGES 62 D. EXAMINATION OF YOUR BOOKS AND RECORDS 62 E. INSPECTIONS AND SURVEYS 62 F. PREMIUMS 62 G. TRANSFER OF RIGHTS AND DUTIES UNDER THIS POLICY 62 H. STATUTORY PROVISIONS 63 I. ARBITRATION 63 J. MULTIPLE YEAR POLICIES 63 K. LIBERALIZATION 64 COREIS. A GL C,w4.r1 Cvmp,i'i; MUNICIPALITIES PACKAGE POLICY PART I PROPERTY COVERAGE PART Various provisions in this Policy restrict coverage. Read the entire Policy carefully to determine rights, duties, what is covered and what is not covered. Throughout this Policy the words you and your refer to the Named Insured shown in the Common Declarations. The words we, us and our refer to this Company providing this insurance. Words and phrases that appear in quotation marks have special meanings. Please refer to Paragraph L. DEFINITIONS of this section for these meanings. A. COVERAGE Subject to the applicable Limits of Insurance and Deductibles shown in the Property Declarations, and unless otherwise excluded or limited by the provisions of this Form or the Policy Conditions, we will pay for direct physical loss of or damage to Covered Property arising from Covered Causes of Loss. B. LIMITS OF INSURANCE The most we will pay for all loss, damage or costs in any one "loss occurrence" is the applicable Limits of Insurance shown in the Property Declarations. The "Blanket Limit of Insurance" shown in the Property Declarations applies to all Covered Property unless a separate limit, lower limit or reduced amount of insurance is indicated in this Form or in the Property Declarations for any such Covered Property. C. DEDUCTIBLES We will not pay for loss or damage in any one loss occurrence" until the amount of the loss or damage exceeds the Deductibles shown in the Property Declarations. If only one Deductible is shown in the Property Declarations then all claims for toss or Damage to Covered Property are subject to that Deductible. If more than one Deductible is indicated in the Property Declarations then the specified Deductible will be applied to each claim for loss or damage to the property indicated. When more than one Deductible applies to the property damaged in the same "loss occurrence" only the largest Deductible will apply to the entire claim for all property lost or damaged. D. COVERED PROPERTY Covered Property means the following types of property. © Copyright, Coregis Insurance Organizations, 1997 Includes copyrighted material of Insurance Services Office, Inc. with its permission. c. Personal property you own or for which you are legally liable located in buildings or structures you newly acquire, occupy or construct. You must report to us this personal property in newly acquired. occupied or constructed buildings or structures at time of acquisition, occupancy or completion of construction, or when the personal property is moved into the newly acquired, occupied or constructed buildings or structures, for coverage under the "Blanket Limit of Insurance." If you have not notified us within thirty (30) days of acquisition, occupancy or end of construction that the personal property in the newly acquired or constructed buildings or structures is to be insured under the "Blanket Limit of Insurance," the most we will pay for all loss or damage to that personal property in any newly acquired, occupied or constructed building or structure is $250,000 regardless of its value. If you do not report the personal property in newly acquired, occupied or constructed buildings or structures to us by the next Policy anniversary or renewal following acquisition, occupancy or completion of construction there will be no coverage the next year. d. Your personal property, or the personal property of others for which you are legally liable, in transit, at exhibitions or at "premises" which you do not own, lease, operate or regularly use. As respects such personal property, we will not pay more than $100,000 in any one "loss occurrence;" and e. Personal property of employees and volunteers that is located in or on "premises" insured under this Policy. However, we will not pay more than: (1) $1,000 for the personal property of any one volunteer; or (2) $2,500 for the personal property of any one employee. The most we will pay for all employee and volunteer personal property lost or damaged in one "loss occurrence" is $50,000. Personal property is automatically covered under the "Blanket Limit of Insurance" shown in the Property Declarations if included in the Schedule of Property you have provided to us except as limited in c., d. and e. above. E. SPECIAL PROPERTY COVERAGES The following Special Property Coverages are provided to you as part of the "Blanket Limit of Insurance" indicated in the Policy Declarations. If you require limits other than those provided below, the limits you have purchased will be shown in the Policy Declarations but will remain a part of the "Blanket Limit of Insurance." These Special Property Coverages may have Deductibles that are different from the Deductible shown in the Policy Declarations for the "Blanket Limit of Insurance" and the provisions of Paragraph C. DEDUCTIBLES will apply. These Special Property Coverages are: 1. "Business Income" We will pay for the actual loss of "Business Income," including "Rental Value," you sustain due to the necessary suspension of your "operations" during the "period of restoration" after a "loss occurrence." The suspension must be caused by direct physical loss of or damage to Covered Property at a "premises" insured under this Policy resulting from a Covered Cause of Loss. The most we will pay in any one "loss occurrence" for your "Business Income" is $250,000. 2. Extra Expense © Copyright, Coregis Insurance Organizations, 1997 Includes copyrighted material of Insurance Services Office, Inc. with its permission. c. Short circuit, blowout or other electrical disturbance within the covered Computer Equipment which results from power failure, power surge or brownout originating at your "premises" or within 1,000 feet from the "premises" containing the Computer Equipment; d. Electrical or magnetic injury to, or disturbance or erasure of covered Electronic Media, which results from power failure, power surge or brownout originating at your "premises" or within 1,000 feet from the "premises" containing the Computer Equipment; and e. Sudden and immediate dampness, dryness or extreme changes in temperature resulting from failure or malfunction of heating or air conditioning equipment on your "premises " 6. Fine Arts We will pay for loss to your Fine Arts, or the Fine Arts of others, for which you are legally liable at your "premises" insured under this Policy, or while on exhibition within the United States of America, Canada or the Commonwealth of Puerto Rico, or in transit to and from such exhibition except as restricted below. Exhibition or transit do not mean: a. At fairgrounds; b. On the "premises" of any national or intemational exposition. The "loss occurrence" must be due to a Covered Cause of Loss. The most we will pay for loss or damage to Fine Arts is $5,000 for any one piece of art but not more than $100,000 for all art lost or damaged in any one "loss occurrence." 7. Mobile, Portable or Contractor's Equipment We will pay for loss to your Mobile, Portable or Contractor's Equipment, or the Mobile, Portable or Contractor's Equipment of others for which you are legally liable. The "loss occurrence" must be due to a Covered Cause of Loss. The most we will pay in any one "loss occurrence" for Mobile, Portable or Contractor's Equipment is $50,000. 8. Miscellaneous Property We will pay for loss to your outdoor radio or television antennas, street lights, traffic control lights and signs, flag poles, outdoor signs, fire hydrants, parking meters and fences if these items are included in the Schedule of Property you provide to us. The most we will pay in any one "loss occurrence" for this Miscellaneous Property is $25,000. The "loss occurrence" must be due to a Covered Cause of Loss. 9. Trees, Shrubs and Landscape Planting © Copyright, Coregis Insurance Organizations, 1997 Includes copyrighted material of Insurance Services Office, Inc. with its permission. 13. Paved Surfaces We will pay up to $100,000 in any one "loss occurrence" for loss or damage to the following paved surfaces on your "premises" insured under this Policy: a. Bridges under 30 feet in length; b. Roadways and parking lots; c. Walks and patios; and d. Running tracks or other athletic courts. The "loss occurrence" must be due to a Covered Cause of Loss but does not apply to loss or damage caused by vehicles or by freezing and thawing. 14. "Commandeered Property" or "Impounded Property" a. We will pay up to $100,000 in any one "loss occurrence" for loss or damage to "Commandeered Property" that you seize, borrow or take possession of for official use in an emergency situation. b. At your request, we will pay up to $100,000 in any one "loss occurrence" for loss or damage to "Impounded Property" that you seize or take possession of in your official capacity of enforcing the laws of the local, state or Federal governments. "Commandeered" and "Impounded Property" does not include coverage for any of the following: a. Personal effects belonging to you, your officers, trustees, directors, employees or volunteers; or b. Money, bills, evidences of debt or other securities. We will not cover "Impounded Property" unless an official inventory of the property has been taken and signed by the owner of the "Impounded Property." The most we will pay for all "Commandeered" and "Impounded Property" damaged or destroyed in any one "loss occurrence" is $100,000. The "loss occurrence" must be due to a Covered Cause of Loss. 15. "Emergency Service Portable Equipment" We will pay for loss or damage to your "Emergency Service Portable Equipment," or the "Emergency Service Portable Equipment" of others in your care, custody or control while on your "premises" or away from your "premises" during emergency use or in transit to or from emergency situations. The most we will pay for "Emergency Service Portable Equipment" in any one "loss occurrence" is $250,000. The "loss occurrence" must be due to a Covered Cause of Loss © Copyright, Coregis Insurance Organizations, 1997 Includes copyrighted material of Insurance Services Office, Inc. with its permission. b. $2,500 for money and securities while being conveyed away from the insured "premises" by you, your officers, your employees or appointed agents. F. PROPERTY NOT COVERED We will not pay for loss or damage to: 1. Accounts, bills, currency or other moneys, deeds, food stamps or other evidences of debt, scrip, notes or securities except as provided under E. SPECIAL PROPERTY COVERAGES; 2. Vehicles held for sale or "automobiles;" 3. Dams, levees, reservoirs, tunnels, bridges, roadways, walks, patios or other paved surfaces except as provided under E. SPECIAL PROPERTY COVERAGES; 4. Contraband, or property in the course of illegal transportation or trade; 5. The cost of excavations, grading, backfilling or filling; 6. Land (including land on which the property is located), water, growing crops, lawns, trees, shrubs or landscape planting except as provided under E. SPECIAL PROPERTY COVERAGES; 7. Bulkheads, pilings, piers, wharves or docks unless included in the Schedule of Property you have provided to us; 8. Property that is covered under another coverage form of this or any other policy in which it is more specifically described, except for the excess of the amount due (whether you can collect on it or not) from that other insurance; 9. Retaining walls that are not part of buildings you own; 10. Underground tanks, pipes, flues, sewers or drains you own that are not located on "premises" insured under this Policy; 11. Electrical or communication lines, towers and poles you own that are not located on a "premises" insured under this Policy; 12. Buildings that are "vacant" except as provided under E. SPECIAL PROPERTY COVERAGES; 13. Watercraft not included in the Schedule of Property or aircraft; and 14. Personal property while airborne or waterbome via ocean or Great Lakes going vessel. G. EXTENSIONS OF COVERAGE © Copyright, Coregis Insurance Organizations, 1997 Includes copyrighted material of Insurance Services Office, Inc. with its permission. a. Extract "pollutants" from land or water; or b. Remove, restore or replace polluted land or water, 6. Demolition We will pay the greater of an additional $500,000 or 15% of the value of any damaged building for the cost to demolish and reconstruct the undamaged portion of the building after a "loss occurrence" due to a Covered Cause of Loss if: a. At the time of the "loss occurrence" the enforcement of any federal, state or municipal law, ordinance or code specifically necessitates such demolition; and b. At the time of the "loss occurrence" the "Blanket Limit of Insurance" applies to the damaged building, In no event shall this insurance apply to any cost resulting from demolition necessitated by the enforcement of any law, ordinance or governmental directive which regulates the use or requires repair, removal of or testing for "pollutants," contaminants, asbestos or other hazardous substances. In applying the terms of this Extension of Coverage, building means the specific building damaged in the "loss "occurrence" and does not include adjoining or contiguous buildings connected by common roofs, walls or passageways. This Extension of Coverage includes the cost to remove the debris of the portion of the building which had to be demolished. 7. "Increased Cost of Construction" We will pay the greater of an additional $500,000 or 15% of the value of any damaged building, based on the value of that building as shown in the most recent Schedule of Property on file with us, for your "Increased Cost of Construction." This Extension of Coverage will apply providing: a. The damaged or destroyed building is actually rebuilt or repaired for the same occupancy with a building of like height, floor area and style; b. Repair or rebuilding is completed within 3 years of the "loss occurrence;" and c. You have provided us with a Schedule of Property prior to the "loss occurrence" which declares a specific value for the damaged or destroyed building. This Extension of Coverage is limited to the costs required to meet the minimum code requirements needed to reoccupy the building for its former use. In no event shall this insurance apply to any cost resulting from increased costs necessitated by the enforcement of any law, ordinance or governmental directive which regulates the use or requires repair, removal of or testing for "pollutants," contaminants, asbestos or other hazardous substances, nor shall this insurance apply to any portions of the building not damaged or destroyed in the "loss occurrence." © Copyright, Coregis Insurance Organizations, 1997 Includes copyrighted material of Insurance Services Office, Inc. with its permission. 13. Sewer Back Up During Flooding We will pay up to $25,000 in any one "loss occurrence" for damage to your Covered Property caused by water which has backed up through sewers, drains or sumps during periods of external flooding caused by the overflow of rivers, streams, creeks, lakes, reservoirs or similar bodies of water on the surface of the ground which are not your responsibility to maintain. This coverage will apply only when the water has backed up through sewers, drains or sumps that are within buildings included in the Schedule of Property you have provided to us. H. LIMITATIONS TO COVERED PROPERTY Except as limited herein, we will not pay for loss of or damage to: 1. Steam boilers, steam pipes, steam engines or steam turbines caused by or resulting from any condition or event inside such equipment. But we will pay for loss of or damage to such equipment caused by or resulting from an explosion of gases or fuel within the combustion chamber or firebox of any fired vessel or within the flues or passages through which the gases of combustion pass. 2. Hot water boilers or other water heating equipment caused by or resulting from any condition or event inside such boilers or equipment. But we will pay for loss of or damage to such equipment caused by or resulting from an explosion of gases or fuel within the combustion chamber or firebox of any fired hot water vessel or within the flues or passages through which the gases of combustion pass. 3. Gutters and downspouts caused by or resulting from weight of snow, ice or sleet. 4. The interior of any building or structure, or to personal property in the building or structure, caused by or resulting from rain, snow, sleet, ice, sand or dust, whether driven by wind or not, unless: a. The building or structure first sustains damage by a covered cause of loss to its roof, walls, doors or windows and the rain, snow, sleet, ice, sand or dust enters the interior through such damaged roof, walls, doors or windows; or b. The loss or damage is caused by or results from thawing of snow, sleet or ice on the building or structure. 5. Building materials and supplies over 500 feet from your insured building under construction or renovation caused by or resulting from theft. 6. Property that is missing, where the only evidence of the loss or damage is a shortage disclosed on taking inventory, or other instances where there is no physical evidence to show what happened to the property. 7. Property that has been transferred to a person or to a place outside the described "premises" on the basis of unauthorized instructions. I. COVERED CAUSES OF LOSS Covered Causes of Loss, as used in this Policy, means risks of DIRECT PHYSICAL LOSS unless the loss is: © Copyright, Coregis Insurance Organizations, 1997 Includes copyrighted material of Insurance Services Office, Inc. with its permission. All volcanic eruptions that occur within any 168 -hour period will constitute a single occurrence Volcanic action does not include the cost to remove ash, dust or particulate matter that does not cause direct physical loss or damage to the described property. This Exclusion does not apply to the following SPECIAL PROPERTY COVERAGES: (1) "Valuable Papers;" (2) Accounts Receivable; (3) Computer Equipment and Electronic Media; (4) Fine Arts; (5) Mobile, Portable or Contractor's Equipment; and (6) "Emergency Service Portable Equipment.' c. Collapse Unless collapse is caused by: (1) Fire, lightning, explosion, windstorm or hail, smoke, aircraft or vehicle collision, riot or civil commotion, vandalism, sprinkler leakage, sinkhole collapse, volcanic action, falling objects, weight of snow, ice, rain or sleet that collects on a roof, or water damage. (a) Sinkhole collapse means the sudden sinking or collapse of land into underground empty spaces created by the action of water on underlying rock formations. The cost of filling the sinkhole is excluded from all coverage. (b) Falling objects does not include loss or damage to: (i) Personal property in the open; or (ii) The interior of a building or structure, or personal property inside a building or structure, unless the roof or an exterior wall of the building or structure is first damaged by the falling object. (c) Water damage means accidental discharge or leakage of water or steam as the direct result of the breaking or cracking of any part of a system, appliance or pipe containing water or steam. (2) Hidden decay, insect or vermin damage. (3) Weight of people or personal property. © Copyright, Coregis Insurance Organizations, 1997 Includes copyrighted material of Insurance Services Office, Inc. with its permission. (6) "Emergency Service Portable Equipment." e. Utility Failure Except as provided under E. SPECIAL PROPERTY COVERAGES and G. EXTENSIONS OF COVERAGE, the failure of power or other utility service supplied to the described "premises," however caused, if the failure occurs further than 250 feet away from the described "premises." But if the failure of power or other utility service results in a Covered Cause of Loss, we will pay for the loss or damage caused by that Covered Cause of Loss. f. Government Action ---- Seizure or destruction of property by order of governmental authority. But we will pay for acts of destruction ordered by governmental authority and taken at the time of a fire to prevent its spread. g. War and Military Action (1) War, including undeclared or civil war; (2) Warlike action by a military force, including action in hindering or defending against an actual or expected 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. h. Nuclear Reaction Nuclear reaction or radiation, or radioactive contamination, however caused. But if loss or damage by fire results, we will pay for the loss or damage caused by that fire. i. Pollution Except as provided under G. EXTENSIONS OF COVERAGE, we will not pay for any loss or damage caused or aggravated by the actual, alleged or threatened discharge, dispersal, release, escape, seepage or migration of "pollutants," whether or not intended or expected from your standpoint, nor for any loss, cost, liability or expense to test for, monitor, clean up, remove, contain, treat, detoxify, neutralize, or in any way respond to, or assess the effects of any "pollutants." j. Asbestos © Copyright, Coregis Insurance Organizations, 1997 Includes copyrighted material of Insurance Services Office, Inc. with its permission. e. Explosion of steam boilers, steam pipes, steam engines or steam turbines owned, leased or operated by you or operated under your control. But if loss or damage by fire or combustion explosion results, we will pay for that resulting loss or damage. We will also pay for loss or damage caused by or resulting from the explosion of gasses or fuel within the furnace or fire box of any fired vessel or within the flues or passages through which the products of combustion pass. f. Water, other liquids, powder or molten material that leak or flow from plumbing, heating, air conditioning or other equipment (except fire protection systems) caused by or resulting from freezing, unless: (1) You make a good faith effort to maintain heat in the building or structure; or (2) You drain the equipment and shut off the supply if the heat is not maintained. g. Dishonest or criminal act by you, any of your partners, employees, directors, trustees, authorized representatives or anyone to whom you entrust the property for any purpose: (1) While acting alone or in collusion with others; or (2) Whether or not occurring during the hours of employment. This exclusion does not apply to acts of destruction by your employees, but theft by employees is not covered. h. Voluntary parting with any property by you or anyone else to whom you have entrusted the property due to the acceptance of counterfeit currency, or checks or promissory notes that are not paid upon presentation. i. Rain, snow, ice or sleet to personal property in the open. j. Obvious continuous or repeated seepage or leakage of water or steam from within a plumbing, heating or air conditioning system, or from within any domestic appliance which occurs over a period of 14 days or more. If loss by water not otherwise excluded ensues, we will cover the cost of tearing out and replacing any part of the covered building required to effect repairs to the plumbing, heating, air conditioning or domestic appliance, but we will not pay for loss to the system or appliance from which the water or steam escapes. 3. We will not pay for loss or damage caused by or resulting from any part of the following. But if loss or damage by a Covered Cause of Loss results, we will pay for that resulting loss or damage. a. Weather conditions, but this exclusion only applies if weather conditions contribute in any way with an excluded Cause of Loss. © Copyright, Coregis Insurance Organizations, 1997 Includes copyrighted material of Insurance Services Office, Inc. with its permission. This will not restrict your insurance. 3. Reporting of Values to This Company At each anniversary, you agree to furnish us with a Schedule of Property for all property to be insured under this Policy. This Schedule of Property shall include the following information: a. Street address or plat description of all property to be insured; b. 100% replacement cost value of all property to be insured; c. A brief description of the construction of all buildings or structures at each location. If a location is not reported to us, it will be considered as a newly acquired location and covered as such. 4. Loss Conditions a. Abandonment There can be no abandonment of any property to us. b. Appraisal If we and you disagree on the value of the property or the amount of loss, either may make written demand for an appraisal of the loss. In this event, each party will select a competent and impartial appraiser. The two appraisers will select an umpire. If they cannot agree, either may request that selection be made by a judge of a court having jurisdiction. The appraisers will state separately the value of the property and amount of loss. If they fail to agree, they will submit their differences to the umpire. A decision agreed to by any two will be binding. Each party will: (1) Pay its chosen appraiser; and (2) Bear the other expenses of the appraisal and umpire equally. If there is an appraisal, we will still retain our right to deny the claim. c. Duties at Time of Loss You must see that the following are done in the event of loss or damage to Covered Property: (1) Notify the police if a law may have been broken. (2) Give us prompt notice of the loss or damage. Include a description of the property involved. (3) As soon as possible, give us a description of how, when and where the loss or damage occurred. © Copyright, Coregis Insurance Organizations, 1997 Includes copyrighted material of Insurance Services Office, Inc. with its permission. (6) We will pay for covered losses or damage within 30 days after we receive the sworn statement of loss, if: (a) You have complied with all of the terms of this Section; and (b) (i) We have reached agreement with you on the amount of loss; or (ii) An appraisal award has been made. 5. Concealment or Fraud This entire Policy shall be void if, whether before or after a loss, you have willfully concealed or misrepresented any matenal fact or circumstance concerning this insurance, or the subject thereof, or your interest therein, or in case of any fraud or false swearing by you relating thereto. 6. Legal Action Against Us No one may bring a legal action against us under the Property Section of this Policy unless: a. There has been full compliance with all of the terms in the Property Section of this Policy and the Policy Conditions; and b. The action is brought within one (1) year after the date on which the direct physical loss or damage occurred, unless otherwise provided by statute. 7. No Benefit to Bailee No person or organization, other than you, having custody of Covered Property will benefit from this insurance. 8. Insurance Under More Than One Coverage If two or more of this Policy's coverages apply to the same loss or damage, we will not pay more than the actual amount of the loss or damage. 9. Other Insurance You may have other insurance subject to the same plan, terms, conditions and provisions as the insurance under this Policy. If you do, we will pay our share of the covered loss or damage. Our share is the proportion that the applicable Limit of Insurance in this Policy bears to the combined limits of insurance of all insurance covering on the same basis. 10. Excess Insurance You may carry non-contributing excess insurance without reduction of the applicable Limit of Insurance under this Policy. © Copyright, Coregis Insurance Organizations, 1997 Includes copyrighted material of Insurance Services Office, Inc. with its permission. for the property. We will pay recovery expenses and the expenses to repair the recovered property, subject to the Limit of Insurance. 13. Valuation Covered Property will be valued on the following basis: a. Your Property Except as provided below, or elsewhere in this Policy, we will determine the value of your Covered Property at replacement cost at the time and place of loss. Replacement cost means that the repair or replacement will be made with materials or property of like kind, quality or function. We will not pay more for loss on a replacement cost basis than the least of: (1) The applicable amount of insurance; (2) The amount which would be required to rebuild, repair or replace the property if it were on the same site, however, you do not have to replace the property at the same site; or (3) The amount you actually spend that is necessary to repair or replace the lost or damaged property. You may make a claim for the loss or damage covered by this insurance on an actual cash value basis instead of on a replacement cost basis. In the event that you do elect to have the loss settled on an actual cash value basis, you may still make a claim for the replacement cost if you notify us of your intent to do so within 180 days after the date of the loss occurrence." We will not pay on a replacement cost basis for any loss or damage: (1) Until the lost or damaged property is actually repaired or replaced; and (2) Unless the repairs or replacement have begun within three (3) years after the date of the loss or damage. b. Tenants' Improvements and Betterments (1) If repaired or replaced at your expense within a reasonable time after the loss, the replacement value of the damaged or destroyed improvements and betterments (2) If not repaired or replaced within a reasonable time after the loss, that portion of the original cost at the time of installation of the damaged or destroyed improvements and betterments which the unexpired term of the lease or rental agreement, whether written or oral, in effect at the time of loss bears to the period from the date such improvements and betterments were made to the expiration date of the lease or rental agreement. (3) If repaired or replaced at the expense of others for your use, there shall be no liability under this Policy. c. "Business Income" © Copyright, Coregis Insurance Organizations, 1997 Includes copyrighted material of Insurance Services Office, Inc. with its permission. (3) If no duplicates exist, labor cost to reconstruct the records from the previous generation of records, media or data. f. Accounts Receivable If you are unable to accurately establish the amount of your Accounts Receivable outstanding at the time of the "loss occurrence," the following method will be used: (1) Determine the average monthly amount of Accounts Receivable for the twelve (12) months immediately preceding the month in which the loss occurred; and (2) Adjust the average for any normal fluctuations in the amount of Accounts Receivable for the month in which the loss occurred or for any demonstrated variance from the average for that month. The following will be deducted from the total amount of Accounts Receivable: (1) The amount of the Accounts Receivable for which there is no loss; (2) The amount of the Accounts Receivable that you are able to reestablish or collect; (3) An amount to allow for probable bad debts that you are normally unable to collect; and (4) All unearned interest and service charges. g. Computer Equipment Computer Equipment will be valued at the cost to replace the equipment with equipment of like kind, quality and function. h. Fine Arts Fine Arts will be valued at their appraised value prior to the loss or damage. If no appraisal has been made prior to the "loss occurrence," the value shall be the cost to make replicas of the lost Fine Arts. i. Mobile, Portable or Contractor's Equipment We will determine the value of Mobile, Portable or Contractor's Equipment at actual cash value as of the time of the loss or damage. j. Miscellaneous Property We will determine the value of the Miscellaneous Property listed under E. SPECIAL PROPERTY COVERAGES at actual cash value as of the time of the loss or damage. k. "Commandeered Property" or "Impounded Property" © Copyright, Coregis Insurance Organizations, 1997 Includes copyrighted material of Insurance Services Office, Inc. with its permission. The most we will pay for the loss is the amount calculated in Step d. unless this amount exceeds the Limit of Insurance shown in the Property Declarations. If the amount calculated in Step d. exceeds the Limit of Insurance shown in the Property Declarations, then the most we will pay is the Limit of Insurance. 15. Agreed Amount If Agreed Amount is indicated in the Property Declarations, the following conditions apply to your coverage for Building and Structures and Personal Property. a. This Agreed Amount condition supersedes the 14. Insurance To Value condition above. b. You must provide us with a Statement of Values. This Statement of Values must include a schedule of all property to be included under this Agreed Amount condition including the replacement cost value of this property. c. This Agreed Amount condition will become effective on the effective date of this Policy, the anniversary date of this Policy if this Policy is written for longer than a one year term, or on the date we receive the Statement of Values if such date is later than the Policy effective or anniversary date. d. This Agreed Amount condition expires on the date shown in the Property Declarations and will be reinstated only after we receive a new Statement of Values from you. 16. Mortgage Holder Provisions a. The term Mortgage Holder includes trustee. b. We will pay for covered loss of or damage to buildings or structures to each Mortgage Holder shown in the Property Declarations in their order of precedence, as interests may appear. c. The Mortgage Holder has the right to receive loss payment even if the Mortgage Holder has started foreclosure or similar action on the building or structure. d. If we deny your claim because of your acts or because you have failed to comply with the terms of this Policy, the Mortgage Holder will still have the right to receive loss payment if the Mortgage Holder: (1) Pays any premium due under this Policy, at our request, if you have failed to do so; (2) Submits a signed, sworn proof of loss within 60 days after receiving notice from us of your failure to do so; and (3) Has notified us of any change in ownership, occupancy or substantial change in risk known to the Mortgage Holder. All of the terms of this Policy will then apply directly to the Mortgage Holder. e. If we pay the Mortgage Holder for any loss or damage and deny payment to you because of your acts or because you have failed to comply with the terms of this Policy: © Copyright, Coregis Insurance Organizations, 1997 Includes copyrighted material of Insurance Services Office, Inc. with its permission. (1) The Loss Payee's rights under the contract will be transferred to us to the extent of the amount we pay; and (2) The Loss Payee's right to recover the full amount of the Loss Payee's claim will not be impaired At our option, we may pay to the Loss Payee the whole principal on the contract plus any accrued interest. In this event, your contract and note will be transferred to us and you will pay your remaining contract debt to us. e. If we cancel this Policy, we will give written notice to the Loss Payee at least: (1) 10 days before the effective date of cancellation if we cancel for non-payment of premium; or (2) 60 days before the effective date of cancellation if we cancel for any other reason. f. If we elect not to renew this Policy, we will give written notice to the Loss Payee at least 10 days before the expiration date of this Policy. 18. Unintentional Errors and Omissions Your failure to report, in the Schedule of Property you provide to us, all of the property to be insured under this Policy will not prejudice your coverage for that property provided such omission is not intentional on your part and you report the property to us as soon as you discover the omission. However, this Condition does not apply to "vacant" buildings or buildings under construction. L. PROPERTY DEFINITIONS 1. "Automobile" means a land motor vehicle, trailer or semi -trailer subject to motor vehicle registration. 2. "Blanket Limit of Insurance" means a limit of insurance equal to the total value of all of your Buildings, Structures and Personal Property included in the Schedule of Property submitted to us. The "Blanket Limit of Insurance" includes the property covered under E. SPECIAL PROPERTY COVERAGES. If you do not own any buildings or structures, the "Blanket Limit of Insurance" means a limit of insurance equal to the total value of your Personal Property. 3. "Business Income" means: a. Net Income (Net Profit or Loss before income taxes) that would have been earned or incurred; and b. Continuing normal operating expenses, including payroll. 4. "Commandeered Property" means any real or personal property owned by someone else including "automobiles," watercraft, aircraft and animals that you commandeer, seize, borrow or take over for official use to handle an emergency situation or to enforce the laws of the local, state or Federal government. 5. "Emergency Service Portable Equipment" means portable firefighting, ambulance or rescue related equipment that you own, or is furnished for your use, for regular emergency services you perform. © Copyright, Coregis Insurance Organizations, 1997 Includes copyrighted material of Insurance Services Office, Inc. with its permission. b. Requires any insured, or others, to test for, monitor, clean up, remove, contain, treat, detoxify, 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." 12. "Pollutants" means any solid, liquid, gaseous or thermal irritant, contaminant, corrosive or toxic substance, including smoke vapors, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned or reclaimed. 13. "Premises" means a location described in the Schedule of Property you have given to us for buildings or other structures you own or occupy including grounds and paved surfaces adjacent to the building or structure, and bounded by public streets or official property lot lines. 14. "Rental Value" means the: a, Total anticipated rental income from the tenant occupancy of the described "premises" as furnished and equipped by you; b. Amount of all charges which are the legal obligation of the tenant(s) and which would otherwise be your obligations; and c. Contractual rent payments on any portion of the described "premises" which is occupied by you. 15. "Specified Cause of Loss" means the following: Fire; Lightning; Explosion; Windstorm or Hail; Smoke; Aircraft or Vehicles; Riot or Civil Commotion; Sinkhole Collapse; Volcanic Action or Falling Objects. Sinkhole collapse means the sudden sinking or collapse of land into underground empty spaces created by the action of water on limestone or dolomite. Sinkhole collapse does not include: a. The cost of filling sinkholes; or b. Sinking or collapse of land into man-made underground cavities. 16. "Vacant" means any building that: a. Does not contain enough contents to conduct customary "operations;" or b. Has no portion occupied or in use; A building which otherwise meets this definition of vacant will not be considered vacant if there are other occupied buildings on the same "premises " A building in course of construction or renovation will not be considered "vacant." 17. "Valuable Papers" means books of account, manuscripts, abstracts, drawings, card index systems, film, tape, disc, drum, cell or other data processing, or recording or storage media. © Copyright, Coregis Insurance Organizations, 1997 Includes copyrighted material of Insurance Services Office, Inc. with its permission. 'Throughout this policy the words you and your refer to the Named Insured shown in the Declarations, and any other person or organization qualifying as a Named Insured under this policy. The words we, us and our refer to the Company providing this insurance. The word insured means any person or organization qualifying as such under SECTION II. WHO IS AN INSURED Other words and phrases that appear in quotation marks have special meaning. Refer to SECTION V. DEFINITIONS. SECTION I - COVERAGES COVERAGE A. GENERAL LIABILITY AND LAW ENFORCEMENT LIABILITY 1. Insuring Agreement - GENERAL LIABILITY a. We will pay those sums that the insured becomes legally obligated to pay as "damages" because of "bodily injury" or "property damage" caused by an "occurrence;" or "personal injury" or "advertising injury" caused by an offense as more fully described in the definitions of "personal injury" and "advertising injury". We will have the right and duty to defend the insured against any "suit" seeking such "damages." However, we will have no duty to defend the insured against any "suit" seeking "damages" because of "bodily injury," "property damage," "personal injury" or "advertising injury" to which this insurance does not apply. We may at our discretion investigate any "occurrence" or offense and settle any claim or "suit" that may result. But: (1) The amount we will pay for "damages" is limited as described in LIMITS OF INSURANCE (Section III); and (2) Our duty to defend ends when applicable Limits of Insurance have been exhausted. b. Additional Coverages The following additional coverages are in lieu of and not in addition to any coverage that may be available under 1. Insuring Agreement - GENERAL LIABILITY. (1) Failure to Supply We will pay $250,000 for "damages," defense costs and/or claims expenses because of "bodily injury" or "property damage" caused by an "occurrence", which result from any "suit" otherwise covered by this policy arising, in whole or in part, out of the failure of any insured to adequately supply gas, oil, water, electricity or steam. Our limit of liability shall not exceed $250,000 in the aggregate for all "damages," defense costs and/or claims expenses which result from any and all covered "suits" arising out of the failure of any insured to adequately supply gas, oil, water, electricity or steam. (2) Herbicide and Pesticide Application © Copyright, Coregis Insurance Organizations, 1997 Includes copyrighted material of Insurance Services Office, Inc. with its permission. seeking "damages" because of "bodily injury," "property damage" or "personal injury" to which this insurance does not apply. We may at our discretion investigate any "occurrence" or offense and settle any claim or "suit" that may result. But: (1) The amount we will pay for "damages" is limited as described in LIMITS OF INSURANCE (Section III); and (2) Our right and duty to defend end when we have exhausted the applicable limit of insurance in the payment of judgments or settlements under Coverages A or medical expenses under Coverage B. No other obligation or liability to pay sums or perform acts or services is covered unless explicitly provided for under SUPPLEMENTARY PAYMENTS COVERAGES A AND B. b. This insurance applies to "bodily injury," "property damage" or "personal injury" only if: (1) The "bodily injury," "property damage" or "personal injury" is caused by an "occurrence" or offense that takes place in the "coverage territory"; and (2) The "bodily injury," "property damage" or "personal injury" occurs during the policy period. c. "Damages" because of "bodily injury" or "personal injury" include "damages" claimed by any person or organization for care, loss of services or death resulting at any time from the "bodily injury." 3. Exclusions Applicable to COVERAGE A. GENERAL LIABILITY AND LAW ENFORCEMENT LIABILITY This insurance does not apply to: a. Expected or Intended Injury (1) "Bodily injury," "property damage," or "personal injury" arising, in whole or in part, from any dishonest, fraudulent or criminal act of any insured or arising out of the willful violation of a penal statute or ordinance committed by or with the knowledge or consent of any insured as described in Section II - Who Is An Insured; (2) "Bodily injury" or "property damage," expected or intended from the standpoint of the insured, except: (a) The use of reasonable force to protect persons or property; or (b) Actions taken to enforce the law. b. Contractual Liability © Copyright, Coregis Insurance Organizations, 1997 Includes copyrighted material of Insurance Services Office, Inc. with its permission. (1) Any employee or authorized volunteer of any insured arising, in whole or in part, out of and in the course of: (a) Employment by any insured; or (b) Performing duties related to the conduct of the insured's business; (2) The spouse, child, parent, brother or sister of that employee as a consequence of paragraph (1) above. This exclusion applies: (a) Whether the insured may be liable as an employer or in any other capacity; and (b) To any obligation to share "damages" with or repay someone else who must pay "damages" because of the injury. This exclusion does not apply to liability assumed by the insured under an "insured contract." f. Pollution (1) "Bodily injury," "property damage," "personal injury" or "advertising injury" arising, in whole or in part, out of the actual, alleged or threatened discharge, dispersal, seepage, migration, release or escape of "pollutants;" (a) At or from any "premises," site or location which is or was at any time owned or occupied by, or rented or loaned to, any insured; (b) At or from any "premises," site or location which is or was at any time used by or for any insured or others for the handling, storage, disposal, processing or treatment of waste; (c) Which are or were at any time transported, handled, stored, treated, disposed of, or processed as waste by or for any insured or any person or organization for whom you may be legally responsible; or (d) At or from any "premises," site or location on which any insured or any contractors or subcontractors working directly or indirectly on any insured's behalf are or have been performing operations, if: (i) The "pollutants" are brought on or to the "premises," site or location in connection with such operations by such insured, contractor or subcontractor, or (ii) The operations are to test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of "pollutants." Subparagraph (d)(i) does not apply to "bodily injury," "property damage" or "personal injury" arising out of the escape of fuels, lubricants or other operating fluids which are needed to perform the normal electrical, hydraulic or mechanical functions necessary for the operation of "mobile equipment" or its parts, if such fuels, lubricants or other operating fluids escape from a vehicle part designed to hold, store or receive them. This exception does not apply if the fuels, lubricants or other operating fluids are intentionally discharged, dispersed or released, or if such fuels, lubricants © Copyright, Coregis Insurance Organizations, 1997 Includes copyrighted material of Insurance Services Office, Inc. with its permission. (5) "Bodily injury" or "property damage" arising out of the operation of any of the equipment listed in paragraph f.(2) or f.(3) of the definition of "mobile equipment." h. Aircraft and Airports "Bodily injury" or "property damage" arising, in whole or in part, out of. (1) The in-flight operations by or in the control of any insured. The term in-flight as used here means the period from the time the aircraft moves forward in taxiing or taking off, or in attempting to take off, until it has completed its landing run and taxied to a complete stop; or (2) The ownership, maintenance, use or operation of aircraft, airfields, runways, hangars, buildings or other properties in -connection with aviation activities. i. Mobile Equipment "Bodily injury" or "property damage" arising, in whole or in part, out of: (1) The transportation of "mobile equipment" by an "auto" owned or operated by or rented or loaned to any insured; or (2) The use of "mobile equipment" in, or while in practice for, or while being prepared for, any prearranged racing, speed, demolition or stunting activity. This exclusion does not apply to planned emergency or public safety training j. Damage to Property "Property damage" to: (1) Property you own, rent or occupy; (2) "Premises" you sell, give away or abandon, if the "property damage" arises out of any part of those "premises"; (3) Property loaned to you; (4) Personal property in the care, custody or control of any insured; (5) That particular part of real property on which you or any contractors or subcontractors working directly or indirectly on your behalf are performing operations, if the "property damage" arises out of those operations; or (6) That particular part of any property that must be restored, repaired or replaced because "your work" was incorrectly performed on it. © Copyright, Coregis Insurance Organizations, 1997 Includes copyrighted material of Insurance Services Office, Inc. with its permission. America, its territories or possessions or Canada, this part (c) applies only to injury to or destruction of property at such "nuclear facility." The following definitions only apply to Exclusion I:, "Hazardous properties" include radioactive, toxic or explosive properties; "Nuclear material" means "source material," "special nuclear material" or "byproduct material:" "Source material," "special nuclear material" and "byproduct material" have the meanings given them in the Atomic Energy Act of 1954 or in any law amendatory thereof; "Spent fuel" means any fuel element or fuel component, solid or liquid, which has been used or exposed to radiation in a nuclear reactor; "Waste" means any waste material (a) containing a byproduct material and (b) resulting from the operation of any person or organization of any "nuclear facility" included within the definition of "nuclear facility" under paragraph (a) or (b) thereof; "Nuclear facility" means: (a) Any nuclear reactor, (b) Any equipment or device designed or used for (1) separating the isotopes of uranium or plutonium, (2) processing or utilizing "spent fuel," or (3) handling, processing or packaging "waste," (c) Any equipment or device used for the processing, fabricating or alloying of "special nuclear material" if at any time the total amount of such material in the custody of the insured at the "premises" where such equipment or device is located consists of or contains more than 25 grams of plutonium or uranium 233 or any combination thereof, or more than 250 grams or uranium 235; or (d) Any structure, basin, excavation, "premises" or place prepared or used for the storage or disposal of "waste," and includes the site on which any of the foregoing is located, all operations conducted on such site and all "premises" used for such operations. "Nuclear reactor" means any apparatus designed or used to sustain nuclear fission in a self-supporting chain reaction or contain a critical mass of fissionable material. With respect to injury to or destruction of property, the word "injury" or "destruction" includes all forms of radioactive contamination of property. m. Your Product "Property damage" to "your product" arising, in whole or in part, out of it or any part of it. n. Your Work © Copyright, Coregis Insurance Organizations, 1997 Includes copyrighted material of Insurance Services Office, Inc. with its permission. (1) Oral or written publication of material, by or at the direction of an insured with knowledge of its falsity; (2) Oral or written publication of material first published before the beginning of the policy period; (3) The willful violation of a penal statute or ordinance committed by or with the consent of any insured resulting in 'personal injury" or "advertising injury;" (4) Patent infringement, violation of any anti-trust or unfair trade practices law, or unlawful restraint of trade. u. Advertising "Advertising injury" arising, in whole or in part, out of: (1) Breach of contract, other than misappropriation of advertising ideas under an implied contract; (2) The failure of goods, products or services to conform with advertised quality or performance; (3) The wrong description of the price of goods, products or services. v. War "Bodily injury," "property damage" or "personal injury" due to war, whether or not declared, or any act or condition incident to war. War includes civil war, insurrection, rebellion or revolution. This exclusion applies only to liability assumed under a contract or agreement. Exclusions c. through p. do not apply to damage by fire to "premises" while rented to you or temporarily occupied by you with permission of the owner, arising out of any one fire. A separate Limit of Insurance applies to this coverage as shown in the declarations under Fire Damage Limit. COVERAGE B. MEDICAL PAYMENTS 1. Insuring Agreement. a. We will pay medical expenses as described below for "bodily injury" caused by an accident: (1) On "premises" you own or rent; (2) On ways next to "premises" you own or rent, or (3) Because of your operations; provided that: (1) The accident takes place in the "coverage territory" and during the policy period; @ Copyright, Coregis Insurance Organizations, 1997 Includes copyrighted material of Insurance Services Office, Inc. with its permission. k. Included within the "products completed operations hazard." SUPPLEMENTARY PAYMENTS —COVERAGE A We will pay, with respect to any claim we investigate or settle or any "suit" against an insured we defend: 1. All expenses we incur. 2. The cost of bail bonds required because of accidents or traffic law violations arising out of the use of any vehicle to which COVERAGE A. applies. We do not have to furnish these bonds. 3. The cost of bonds to release attachments, but only for bond amounts within the applicable limit of insurance. We do not have to furnish these bonds. 4. All reasonable expenses incurred by the insured at our request to assist us in the investigation or defense of the claim or "suit," including actual loss of earnings up to $250 a day because of time off from work. 5. All costs taxed against the insured in the "suit." 6. Prejudgment interest awarded against the insured on that part of the judgment we pay. If we make an offer to pay the applicable limit of insurance, we will not pay any prejudgment interest based on that period of time after the offer. 7. All interest on the full amount of any judgment that accrues after entry of the judgment and before we have paid, offered to pay, or deposited in court the part of the judgment that is within the applicable limit of insurance. These payments will not reduce the limits of insurance. If we defend an insured against a "suit" and an indemnitee of the insured is also named as a party to the "suit," we will defend that indemnitee if all the following conditions are met: 1. The "suit" against the indemnitee seeks "damages" for which the insured has assumed the liability of the indemnitee in a contract or agreement that is an "insured contract"; 2. This insurance applies to such liability assumed by the insured; 3. The obligation to defend, or the cost of the defense of, that indemnitee, has also been assumed by the insured in the same "insured contract"; 4. The allegations in the "suit" and the information we know about the "occurrence" are such that no conflict appears to exist between the interests of the insured and the interests of the indemnitee; 5. The indemnitee and the insured ask us to conduct and control the defense of that indemnitee against such "suit" and agree that we can assign the same counsel to defend the insured and the indemnitee; and 6. The indemnitee: © Copyright, Coregis Insurance Organizations, 1997 Includes copyrighted material of Insurance Services Office, Inc. with its permission. 5. Each of the following is also an insured, but only for acts within the scope of their employment or at your direction: a. Your employees, b. Your authorized volunteers. However, no authorized volunteer shall be an insured with respect to liability for "damages" due to the rendering or failure to render any professional service, unless such person at the time of the "occurrence" is under the direct supervision or control of the insured. c. Your employed nurses. d. Your firefighters, emergency medical technicians, paramedics and first responders while performing emergency firefighting duties or while providing emergency health care services. As respects c. and -Et.-,above, these individuals are additional insureds with respect to liability for "damages" due to the rendering or failure to render any professional service at the scene of an accident or medical emergency requiring sudden action for humanitarian reasons. However, as respects c. and d. above, this insurance will not apply to individuals acting on behalf of another emergency medical organization for which they may either be employees or volunteers on a regular or irregular basis. 6. With respect to "mobile equipment" registered in your name under any motor vehicle registration law, any person is an insured while driving such equipment along a public highway with your permission. Any other person or organization responsible for the conduct of such person is also an insured, but only with respect to liability arising out of the operation of the equipment, and only if no other insurance of any kind is available to that person or organization for this liability. However, no person or organization is an insured with respect to: a. "Bodily injury" to a co -employee of the person driving the equipment; or b. "Property damage" to property owned by, rented to, in the charge of or occupied by you or the employer of any person who is an insured under this provision. 7. Any organization you newly acquire or form, other than a partnership or joint venture, will qualify as a Named Insured if no other insurance is available to that organization, but only with respect to the conduct of your business and only to the extent of your participation or interest. However, coverage under this provision is afforded only to the 90th day after you acquire or form the organization or, the end of the policy period, whichever is earlier, and does not apply to "bodily injury," "property damage," "personal injury" or "advertising injury" that occurred before you acquired or formed the organization. SECTION III —LIMITS OF INSURANCE 1. The Limits of Insurance shown in the Declarations and the rules below fix the most we will pay regardless of the number of: a. Insureds; b. Claims made or "suits" brought; or c. Persons or organizations making claims or bringing "suits." © Copyright, Coregis Insurance Organizations, 1997 Includes copyrighted material of Insurance Services Office, Inc. with its permission. (1) Immediately record the specifics of the claim or "suit" and the date received; and (2) Immediately notify us in writing. c. You and any other involved insured must - (1) Immediately send us copies of any demands, notices, summonses or legal papers received in connection with the claim or "suit"; (2) Authorize us to obtain records and other information; (3) Cooperate with us in the investigation or settlement of the claim or defense against the "suit"; and (4) Assist us, upon our request, in the enforcement of any right against any person or organization which may be liable to the insured because of injury or "damage" to which this insurance may also apply. d. No insured will, except at that insured's own cost, voluntarily make a payment, assume any obligation, or incur any expense, other than for first aid, without our consent. 2. Legal Action Against Us. No person or organization has a right under this Coverage Part: a. To join us as a party or otherwise bring us into a "suit" asking for "damages" from an insured; or b. To sue us on this Coverage Part unless all of its terms have been fully complied with. A person or organization may sue us to recover on an agreed settlement or on a final judgment against an insured obtained after an actual trial; but we will not be liable for "damages" that are not payable under the terms of this Coverage Part or that are in excess of the applicable limit of insurance. An agreed settlement means a settlement and release of liability signed by us, the insured and the claimant or the claimant's legal representative. 3. Other Insurance. This insurance shall be excess over any other valid and collectible insurance available to an insured. The insurance coverage afforded under this policy shall not apply until such other insurance has been exhausted. This does not apply, however, to insurance purchased specifically to apply in excess of this policy. 4. Representations. By accepting this policy, you agree: a. The statements in the application for insurance are accurate and complete; @ Copyright, Coregis Insurance Organizations, 1997 Includes copyrighted material of Insurance Services Office, Inc. with its permission. a. Oral or written publication of material that slanders or libels a person or organization or disparages a person's or organization's goods, products or services; b. Oral or written publication of material that violates a person's right of privacy; c. Misappropriation of advertising ideas or style of doing business; or d. Infringement of a copyright, trademark, service mark, trade name, title or slogan. 2. "Auto" means a land motor vehicle, trailer or semitrailer designed for travel on public roads, including any attached machinery or equipment. But "auto" does not include "mobile equipment." 3. "Bodily injury" means bodily injury, sickness, disease, disability, shock, mental anguish, mental injury and humiliation, sustained by a person, including death resulting from any of these at any time. 4. "Coverage territory" means that coverage applies to "occurrences" which take place during the policy period anywhere in the world, provided claim is made and "suit" is brought against the insured in the United states of America, its territories and possessions or Canada. 5. "Damages" means money damages, including punitive damages where allowed by law, awarded to a person or entity as compensation for injury or loss caused by the tortious conduct of any insured. "Damages" does not include: (1) injunctive relief or costs to comply with injunctive relief; (2) restitution including refund of taxes; (3) fines, penalties, sanctions; (4) attorneys' fees, unless the attorneys' fees are awarded in addition to money damages otherwise covered by this policy; (5) nominal damages. 6. "Law Enforcement Activity" means all operations of your police force or any other public safety organization which enforces the law and protects persons or property. This includes the maintenance, use or existence of any "premises" occupied by this organization. 7. "Insured contract" means: a. A contract for a lease of "premises". However, that portion of the contract for a lease of "premises" that indemnifies any person or organization for damage by fire to "premises" while rented to you or temporarily occupied by you with permission of the owner is not an "insured contract"; b. A sidetrack agreement; c. Any easement or license agreement, except in connection with construction or demolition operations on or within 50 feet of a railroad; d. An obligation, as required by ordinance, to indemnify a municipality, except in connection with work for a municipality; e. An elevator maintenance agreement; f. That part of any other contract or agreement pertaining to your business (including an indemnification of a municipality in connection with work performed for a municipality) under which you assume the tort liability of another party to pay for "bodily injury" or "property damage" to a third person or organization. Tort liability means a liability that would be imposed by law in the absence of any contract or © Copyright, Coregis Insurance Organizations, 1997 Includes copyrighted material of Insurance Services Office, Inc. with its permission. (1) Air compressors, pumps and generators, including spraying, welding, building cleaning, geophysical exploration, lighting and well servicing equipment; or (2) Cherry pickers and similar devices used to raise or lower workers; f. Vehicles not described in a., b., c. or d. above maintained primarily for purposes other than the transportation of persons or cargo. However, self-propelled vehicles with the following types of permanently attached equipment are not "mobile equipment" but will be considered "autos": (1) Equipment designed primarily for: (a) Snow removal; (b) Road maintenance, but not construction or resurfacing; or (c) Street cleaning; (2) Cherry pickers and similar devices mounted on automobile or truck chassis and used to raise or lower workers; and (3) Air compressors, pumps and generators, including spraying, welding, building cleaning, geophysical exploration, lighting and well servicing equipment. 10. "Occurrence" means an accident, including continuous or repeated exposure to substantially the same general harmful conditions. 11. "Personal injury" means injury, other than "bodily injury," arising out of one or more of the following offenses: a. False arrest, detention or imprisonment; b. Malicious prosecution; c. The wrongful eviction from, wrongful entry into, or invasion of the right of private occupancy of a room, dwelling or "premises" that a person occupies by or on behalf of its owner, landlord or lessor; d. Oral or written publication of material that slanders or libels a person or organization or disparages a person's or organization's goods, products or services; e. Oral or written publication of material that violates a person's right of pnvacy; f. False or improper service of process; g. Discrimination on sex, age, race, ethnic background, national origin, religion, sexual preference, handicap or disability; © Copyright, Coregis Insurance Organizations, 1997 Includes copyrighted material of Insurance Services Office, Inc. with its permission. a. An arbitration proceeding in which such "damages" are claimed and to which the insured must submit or does submit with our consent; or b. Any other alternative dispute resolution proceeding in which such "damages" are claimed and to which the insured submits with our consent. 17. "Your product" means: a. Any goods or products, other than real property, manufactured, sold, handled, distributed or disposed of by: (1) You; (2) Others trading under your name; or (3) A person or organization whose business or assets you have acquired; and b. Containers (other than vehicles), materials, parts or equipment furnished in connection with such goods or products. "Your product" includes: a. Warranties or representations made at any time with respect to the fitness, quality, durability, performance or use of "your product;" and b. The providing of or failure to provide warnings or instructions. "Your product" does not include vending machines or other property rented to or located for the use of others but not sold. 18. "Your work" means: a. Work or operations performed by you or on your behalf; and b. Materials, parts or equipment furnished in connection with such work or operations. "Your work" includes: a. Warranties or representations made at any time with respect to the fitness, quality, durability, performance or use of "your work;" and b. The providing of or failure to provide warnings or instructions. © Copyright, Coregis Insurance Organizations, 1997 Includes copyrighted material of Insurance Services Office, Inc. with its permission. We may examine and audit your books and records as they relate to this policy at any time during the policy period and up to three years afterwards. E. INSPECTIONS AND SURVEYS We have the right but are not obligated to: 1. Make inspections and surveys at any time; 2. Give you reports on the conditions we find; and 3. Recommend changes. Any inspections, surveys, reports or recommendations relate only to insurability and the premiums to be charged. We do not make safety inspections. We do not undertake to perform the duty of any person or organization to provide for the health or safety of workers or the public. And we do not warrant that conditions: 1. Are safe or healthful; or 2. Comply with laws, regulations, codes or standards. This condition applies not only to us, but also to any rating, advisory, rate service or similar organization which makes insurance inspections , surveys, reports or recommendations. F. PREMIUMS The first Named Insured shown in the Declarations: 1. Is responsible for the payment of all premiums; and 2. Will be the payee for any return premiums we pay. G. TRANSFER OF RIGHTS AND DUTIES UNDER THIS POLICY Your rights and duties under this policy may not be transferred without our written consent except in the case of death of an individual Named Insured. If you die, your rights and duties will be transferred to your legal representative but only while acting within the scope of duties as your legal representative. Until your legal representative is appointed, anyone having proper temporary custody of your property will have your rights and duties but only with respect to that property. H. STATUTORY PROVISIONS Terms of this policy which conflict with state statutes are amended to conform to such statutes. I. ARBITRATION All disputes between any insured and us regarding our respective rights and obligations under this Policy, and all daims for "damages" arising from those obligations, shall be resolved by arbitration. Either party may initiate the arbitration process by making a written demand for arbitration. When this demand is made, each party will select an arbitrator. These two arbitrators will select a third arbitrator. If they cannot agree upon a third arbitrator within thirty (30) days, either party may request that selection be made by a court having jurisdiction. Each party will pay the expenses and fees of the arbitrator selected by that party and will bear half the expenses and fees of the third arbitrator. © Copyright, Coregis Insurance Organizations, 1997 Includes copyrighted material of Insurance Services Office, Inc. with its permission. In witness whereof, the Company has caused this policy to be signed by its officers, but this policy shall not be valid unless countersigned on the declarations page by a duly authorized representative of the Company. 6.7 Xd-6-z, SECRETARY PRESIDENT ()Copyright, Coregis Insurance Organizations, 1997 Includes copyrighted material of Insurance Services Office, Inc. with its permission. CORD A GE Capital Company ERRORS AND OMISSIONS AND EMPLOYMENT PRACTICES LIABILITY INSURANCE POLICY (Occurrence Policy) DECLARATIONS Policy No POD -100153 1. ORGANIZATION: Village of Key Biscayne ADDRESS: 85 W. McIntyre Street Key Biscayne, FL 33149 2. TYPE OF ORGANIZATION: XX Public Entity H Educational Institution ❑ Other 3. TERM of POLICY: From October 01, 2001 To October 01, 2002 12:01 A.M. Standard Time at address of "insured" stated above. 4. LIMITS OF LIABILITY: $ 5,000,000 Each "claim", not to exceed $ 5,000,000 in the aggregate for the policy year 5. "DEDUCTIBLE": $ 1,000 Applicable to each "claim" and "claim expenses". 6. PREMIUM: $ 28,716 7. RETROACTIVE DATE: N/A 8. ENDORSEMENTS ATTACHED AT POLICY INCEPTION: CLMSF.1064, CLMEF.1011 Authorized Representatives Michael P. Gill Chairman, President & Chief Executive Officer Countersignature Agent: o CLMDF. 1002 02/00 Page 1 of 1 CORfa A GE Capital Company FLORIDA ERRORS AND OMISSIONS AND EMPLOYMENT PRACTICES LIABILITY INSURANCE POLICY (OCCURRENCE FORM) Please notice that "claims expenses" are included in the limits of liability and are not paid in addition thereto. They are also included in your "deductible". Be careful to seriously consider what limits of liability you will need before you accept this policy. "We", "us" and "our" refer to the insurance company identified above. "You" and "your" refer to the Organization designated in item 1 of the Declarations. Words in quotation marks are defined terms —please read these terms carefully because the definition of such terms in this policy may be different from the reader's personal understanding PREAMBLE The policy consists of the Declarations and these seven sections of terms and conditions The payment of the premium must be made when due. Subject to this policy's Declarations and all the terms and conditions of this insurance, our agreement with you is as follows. II. DEFINITIONS Where used in this policy the following terms shall have the meanings set forth in this Section II. A. "Claim" means a "lawsuit" or other written demand seeking "damages" as a result of a "wrongful act" and in addition, only with respect to a "wrongful employment practice", an administrative proceeding of the Equal Employment Opportunity Commission, a State Human Rights department or similar state or federal agency, delivered to or served on the "insured" seeking "damages" or other relief. B. "Claim expenses" means fees charged by any attorney we approve to defend the "claim", all other fees and expenses resulting from the investigation, adjustment, defense and appeal of any "claim" that we incur or are incurred with our consent, and premiums on appeal bonds and premiums on bonds to release attachments in any "claim" for an amount not in excess of the applicable limits of liability However, we shall have no obligation to apply for or furnish any such bonds "Claim expenses" shall not include salary charges of our regular employees or officials or any supervisory counsel we retain C. "Damages" means monetary compensation for a claimant's loss that is directly related to a "claim", but does not include 1) Destruction, loss, theft, conversion, loss of use, diminution in value of or injury to any tangible or intangible business or personal property, CLMCF 1006 05 00 Page 1 of 11 2) Expenses for disease and/or physical injury to a natural person's body; 3) Compensation of any kind for the death of a natural person; 4) Compensation for breach of contract whether oral, written or implied except any implied employment contract or written employment contract that is the result of collective bargaining; 5) Any written or oral promise to make payments, such as severance pay, in the event of termination; 6) Any costs of complying with or implementing any court order, including but not limited to the construction or modification of facilities; 7) Sanctions, fines, penalties or return of taxes, fees or assessments, and 8) Multiplied portions of any damage award. D. "Deductible" means that amount, as specified in Item 5. of the Declarations, of a settlement, a judgment and/or "claim expenses" that you must pay with respect to any one "claim". The "deductible" does not reduce the limits of liability. E "Insured" shall have the meaning set forth in Section V F. "Lawsuit" means a civil proceeding in a court of law where "damages" may be awarded. G. "Policy period" means the period from the inception date of this policy to the policy expiration date as stated in Item 3. of the Declarations, or its earlier cancellation or termination date, if any. H. "Wrongful act" means an "insured's" act, error or omission, other than a "wrongful employment practice", that allegedly breaches a legal duty that results in "damages" I. "Wrongful employment practice" means conduct of an "insured" with respect to a current, prospective or former employee that arises out of employee hiring, advancement, remuneration, treatment, condition or termination of employment that is insurable by law III. COVERAGE TERRITORY The insurance afforded by this policy applies to "claims" based on conduct taking place anywhere in the world if the "claim" is pursued in courts, governmental agencies or dispute resolution mechanisms located within the United States, its territories and possessions, or Puerto Rico. IV. INSURING AGREEMENT A. We will pay those sums that the "insured" becomes legally obligated to pay as "damages" that result from "wrongful acts" or "wrongful employment practices" that took place during the "policy period". This insurance does not apply to "wrongful acts'%"wrongful employment practices"; any part of which took place prior to the "policy period". CLMCF 1006 05 00 Page 2 of 11 B. We have the right and duty to defend the "insured" against any "claim". However, we will have no duty to defend the "insured" against any "claim" to which this insurance does not apply. We may, at our discretion, investigate any allegation of a "wrongful,act" or "wrongful employment practice". C. The amount we will pay for "damages" and "claim expenses" combined is limited as described in LIMITS OF LIABILITY (SECTION VI); and our right and duty to defend the "insured" against a "claim" shall end when the amount we have paid in "damages" and/or "claim expenses" is equal to the applicable per "claim" or aggregate limits of liability D. If we pay any part or all of the "deductible" to effect settlement of any "claim", you shall promptly reimburse us for such part of the "deductible" that we have paid on your behalf upon request. E. EXCLUSIONS Notwithstanding subsections A through D, above, this insurance does not apply to, and we shall have no obligation to defend or to pay "damages" or "claim expenses" for "claims" arising out of: 1) Conduct of the "insured" or at the "insured's" direction that was committed with an intent to injure, oppress or defraud, or with criminal or malicious purpose or intent; but this exclusion shall not apply to the strictly vicarious liability of any "insured" for the intentional misconduct of another, 2) Any "claim" or "damages" arising out of breach of contract, whether oral, written or implied except any Employment Contract, 3) Actual or alleged liability arising under any workers' compensation, unemployment compensation, disability benefits or any similar state, federal or local law, or under the United States Longshoremen and Harbor Workers Compensation Act, the Jones Act, or the Federal Employers Liability Act, but this exclusion shall not apply to an alleged retaliatory discharge for having asserted a "claim" thereunder, 4) Actual or alleged liability arising under admiralty law, including the law of maintenance and cure; 5) Actual or alleged liability arising under the National Labor Relations Act, Labor Management Relations Act, or any similar state or local law; 6) Actual or alleged liability arising under the Federal Workers' Adjustment and Retraining Notification Act or any similar state or local law; 7) Actual or alleged liability for insurance or other benefits that the claimant may have been entitled to receive pursuant to any state, federal or local law or regarding the continuation of benefits after termination of employment, including but not limited to the Employee Retirement Income Security Act and amendments thereto (ERISA), except to the extent such benefits are sought as items of "damages" for a "wrongful employment practice", but this exclusion shall not apply to an alleged retaliatory discharge for having asserted a "claim" under ERISA or any similar state or local law; 8) Actual or alleged liability for breach of any obligation under ERISA or any similar state or local law, 9) Any actual or alleged liability arising out of the purchase, sale or administration of any type of security, bond or debenture; 10) Liability that is uninsurable under applicable law or public policy, CLMCF 1006 05 00 Page 3 of 1 1 11) Any criminal proceeding; 12) Any "claim" for which the "insured" has coverage (or would have been covered except for the exhaustion of the limits of liability or insolvency of the insurer or violation of the policy's conditions of coverage) under any other policy offering similar coverage to that provided under this insurance unless that other insurance is specifically designated as excess insurance over this insurance; 13) Liability for a "wrongful act" or "wrongful employment practice" from which the "insured" gained a profit, remuneration or advantage to which the "insured" was not entitled; 14) Related to, directly or indirectly: a) The actual, alleged or threatened discharge, dispersal, seepage, migration, release or escape of any solid, liquid, gaseous, thermal, or aural irritant, pollutant, contaminant, or organism, including, but not limited to, noise, lead, smoke, vapors, soot, fumes, acids, alkalies, chemicals or waste materials (including those that are or are to be stored, recycled, reconditioned or reclaimed), into or upon land, air, water or property; and/or b) A voluntary or governmental direction or request to test for, monitor, clean up, remove, contain, treat, detoxify, remediate or neutralize any such irritant, pollutant, contaminant, noise, or organism, or land, air, water or property, 15) Related to, directly or indirectly, electromagnetic fields or other electrical or magnetic waves or radiation; 16) Related to, directly or indirectly, the exposure to or manufacture, mining, use or removal of asbestos, asbestos products, asbestos fibers, or asbestos dust; 17) Related to, directly or indirectly, the use, handling, sale, distribution, transport, shipment, dispersal, storage, or disposal of any nuclear, radioactive or fissionable material, or any alleged violation of any environmental statute, regulation, or ordinance with respect to such material; 18) Related to, directly or indirectly, the planning, construction, maintenance, operation or use of any nuclear reactor, nuclear waste storage facility or disposal site or any other nuclear facility, or nuclear reaction, nuclear radiation or radioactive contamination, or to any act or condition incident to the foregoing, 19) Any demand or proceeding seeking relief or redress in any form other than monetary "damages", including any form of injunctive or other equitable relief, as well as the claimant's attorneys fees and costs, sought in addition to or in the alternative to "damages" as part of the "lawsuit" in which such equitable and injunctive relief are sought, 20) Actual or alleged liability of an educational institution and its employees for violation of the Individuals With Disabilities Act, as amended (IDEA) or similar state or local law, including but not limited to requests for due process hearings or Individualized Education Programs (IEP); and 21) Actual or alleged. a) Assault and/or battery; CLMCF 1006 05 00 Page 4 of 11 b) Misconduct of a law enforcement agency or any individual exercising police powers that occurs after the claimant has been detained, taken into custody, voluntarily or involuntarily, and/or arrested; c) Malicious prosecution and/or abuse'of process; d) Trespass, nuisance, wrongful entry, eviction or any other violation of the rights of occupancy; e) Destruction, loss, theft, conversion, loss of use, diminution in value of or injury to any tangible property; f) Inverse condemnation, temporary or permanent taking, adverse possession or dedication by adverse use; g) Invasion of privacy, disparagement or defamation, including, but not limited to, libel or slander, h) Death, bodily injury, sickness, disease, shock, humiliation, embarrassment, mental injury, mental anguish, emotional distress, or injury to personal or business reputation of character arising from a "wrongful act", and i) Damage or injury to personal or business reputation of character arising from a "wrongful employment practice". V. INSUREDS A. You are an "insured" The following are also "insureds" while acting solely within the course and scope of his or her duties and responsibilities on your behalf as 1) An official; 2) A member or officer of the governing board, commission, department or unit within the total revenue indicated in the policy application, 3) An employee; or 4) A "volunteer". "Volunteer" means any person, including student teachers, whose services are uncompensated and whose activities are directed and supervised by, and for your benefit. "Volunteer" does not include any person performing services that are ordered by, connected with, or supervised by any court, penal or law enforcement official or institution Coverage under this policy shall not be defeated by the fact that the "insured's" liability has been transferred to the "insured's" estate, assignee or legal representative because of the "insured's" death, incompetence, bankruptcy or other legal disability B. Independent contractors as defined by federal tax laws, leased employees, persons working on a retainer basis or other persons performing services on an outsourced basis are not "insureds". C. None of the following organizations are "insureds" (unless named in item 1 of the Declarations or by later endorsement as an "insured" organization) including any of their past or present departments, units, commissions, employees, officials, members, officers of their governing boards, or volunteers schools, airports, transit authorities, housing authorities, hospitals, nursing homes, clinics, electric utilities and gas utilities VI. LIMITS OF LIABILITY CLMCF 1006 05 00 Page 5 of 11 A. Limit of Liability - Each Claim We shall pay "claim expenses" and "damages", in excess of the "deductible" stated in Item 5. of the Declarations, for each "claim" up to the Each "Claim" Limit as stated in Item 4. of the Declarations. B. Limit of Liability - Aggregate Subject to Section VI (A), immediately above, our total liability for "claim expenses" and "damages" shall not exceed the policy's Aggregate Limit stated in Item 4 of the Declarations as a result of all "claims" applicable to the "policy period" C. Multiple Insureds, Claims and Claimants The inclusion of more than one "insured" in any "claim" or the making of "claims" by more than one person or organization shall not operate to increase our limits of liability. Two or more "claims" arising out of a single "wrongful act" or "wrongful employment practice" or a series of related "wrongful acts" or "wrongful employment practices" shall be treated as a single "claim" VII. GENERAL CONDITIONS A. Defense, Investigation and Settlement of Claims We shall investigate and defend any "claim" to which coverage under this policy applies pursuant to the following provisions. 1) "Claim expenses" incurred in investigating and defending such "claim" shall be included within the per "claim" policy limits of liability set forth in the Declarations and shall not be in addition thereto Such "claim expenses" shall reduce the available limits of liability. WE SHALL NOT BE OBLIGATED TO PAY ANY "DAMAGES" OR TO DEFEND OR CONTINUE TO DEFEND ANY "CLAIM" OR TO PAY "CLAIM EXPENSES" AFTER OUR LIMITS OF LIABILITY HAVE BEEN TENDERED TO THE "INSURED", TO THE COURT OR EXHAUSTED BY PAYMENT (S) OF "DAMAGES" AND/OR "CLAIM EXPENSES". 2) We shall select defense counsel. Provided, however, that if the law of the state of the "insured's" domicile allows the "insured" to control the selection of counsel where a conflict of interest has arisen between the "insured" and us, we will provide a list of attorneys or law firms from which the "insured" may designate counsel who shall act solely in the interest of the "insured", and the "insured" agrees to direct such defense counsel to cooperate with us. Such cooperation shall include: a) Providing on a regular basis, not less frequently than every six months, written reports on claimed "damages", potential liability, progress of any litigation, any settlement demands, or any investigation developments that materially affect the "claim", b) Providing any other reasonable information we request and fully itemized billing on a periodic basis; and c) Cooperating with us and the "insured" in resolving any discrepancies. The fees and costs incurred by such counsel, including those fees and costs generated by cooperation with us, as set forth above, shall be included in "claim expenses". Such "claim CLMCF 1006 05 00 Page 6 of 11 expenses" shall be included within the policy limits of liability and not in addition thereto Such "claim expenses" shall reduce the available limits of liability. 3) The "insured" shall cooperate with us in the defense, investigation and settlement of any "claim". The "insured" will assist us in effecting any rights of indemnity, contribution or apportionment available to the "insured" or us. Upon our request, the "insured" without charge to us shall: (i) submit to examination and interview by our representative, under oath if required; (ii) attend hearings, depositions and trials; (iii) assist in effecting settlement, securing and giving evidence, obtaining the attendance of witnesses in the conduct of "lawsuits"; (iv) give a written statement or statements to our representatives; and (v) meet with such representatives for the purpose of determining coverage and investigating and/or defending any "claim" 4) The "insured" shall not, with respect to any "claim" covered under this policy, except at the "insured's" personal cost, make any payment, admit liability, settle "claims", assume any obligation, agree to arbitration or any similar means of resolution of any dispute, waive any rights or incur "claim expenses" without our prior written approval Any costs and expenses incurred by the "insured" prior to the "insured" giving written notice of the "claim" to us shall be borne by the "insured" and will not constitute satisfaction of the "deductible" in whole or in part 5) We will not settle any "claim" without your consent. However, if you refuse to any settlement we recommend and shall elect to further contest such "claim" and/or continue any legal proceedings in connection with such "claim", then we shall not be obligated to pay any settlement or judgment for an amount greater than the amount for which the "claim" could have been settled, and "claim expenses" incurred up to the date of such refusal Such amounts, in any event, are subject always to the provisions of Section VI, LIMITS OF LIABILITY B. Claims Handling 1) Notice of a "claim" If a "claim" is made against the "insured", then the "insured" shall immediately forward to us every notice of an administrative proceeding, charge, demand, notice, summons or other process received by the "insured" or by their representatives 2) Subrogation. a) In the event of any payment under this policy, we shall be subrogated to the extent of such payment to all of the "insured's" rights of recovery against any person or entity The "insured" shall execute and deliver instruments and papers and take all necessary steps to secure such rights The "insured" shall do nothing to prejudice such rights b) Any amount so recovered, whether effected by us or by the "insured", shall be applied net of the expense of such recovery as follows. (i) first, to the satisfaction of the "insured's" payments for "damages" and "claim expenses" that are in excess of the amount of the limits of liability under this policy and that are in excess of any amount paid by any insurer under any other policy, (ii) second, to us as reimbursement of amounts paid under this policy; (iii) third, to any insurer under any CLMCF 1006 05 00 Page 7 of 11 other policy as reimbursement of amounts paid under any such policy; and (iv) fourth, to the "insured" in satisfaction of any applicable "deductible" that such "insured" has actually paid. C. Legal Action Against Us 1) No action shall lie against us unless, as a condition precedent thereto, the "insured" shall have fully complied with all terms of this policy, nor until the amount of the "insured's" obligation to pay shall have been fully and finally determined, either by judgment against the "insured" after actual trial or by written agreement of the "insured", the claimant and us. 2) Any person or entity or the legal representative thereof who has secured such judgment or written agreement shall thereafter be entitled to recover under this policy to the extent of the insurance afforded by this policy 3) Nothing contained in this policy shall give any person or entity any right to join us as a co- defendant in any "claim" against the "insured" to determine the "insured's" liability. Bankruptcy or insolvency of the "insured" or of the "insured's" estate shall not relieve us of any of our obligations hereunder. D. The Application of Insurance By acceptance of this policy, you promise and acknowledge that: 1) The particulars and statements contained in the application of insurance and any material submitted therewith (which we shall keep on file) are true and are the basis for our issuance of this policy of insurance, and 2) The statements in the application for insurance, or in any materials submitted therewith, are your representations; that they shall be deemed material to the acceptance of the risks we have assumed under this policy; and that this policy is issued in reliance upon the truth of such representations E. False or Fraudulent Claims If any "insured" commits fraud in tendering any "claim" as regards amount or otherwise, this insurance shall become void as to such "insured" from the date such fraudulent "claim" was tendered F. Notices All notices to be given us as required by this policy shall be directed to. COREGIS (Attn• New Claims Desk) 181 West Madison Street Chicago, Illinois 60602 No insurance agent or broker is authorized to act as our agent to receive reports or notices with respect to policy CLMCF 1006 05 00 Page 8 of 11 Any reports or notices to an insurance agent or broker shall not constitute compliance with the terms and conditions of this policy. G. Cancellation 1) You may cancel this policy in its entirety by surrendering it to us or by mailing written notice to us stating when after such mailing such cancellation shall be effective. The mailing of notice, as aforesaid, shall be sufficient notice, and the effective date of cancellation stated therein shall become the expiration date of the "policy period". Delivery of such written notice shall be equivalent to mailing it. 2) We may cancel this policy in its entirety by mailing written notice to you at the address stated in the Declarations stating when, not less than sixty (60) days thereafter, such cancellation shall be effective. However, if we cancel the policy because you have failed to pay a premium or an amount owing under the "deductible" when due, we may cancel this policy by mailing a written notice of cancellation to you stating when, not less than ten (10) days thereafter, such cancellation shall be effective. The mailing of notice, as aforementioned, shall be sufficient notice and the effective date of cancellation stated in the notice shall become the expiration date of the policy. Delivery of such written notice by us shall be equivalent to mailing. 3) If this policy is canceled pursuant to paragraph 1., above, the earned premium shall be computed at the customary short rate. If this policy is canceled pursuant to paragraph 2., above, earned premium shall be computed pro -rata. Premium adjustment may be made either at the time cancellation is effected or as soon as practicable thereafter, but payment or tender of unearned premium is not a condition precedent to cancellation H. Changes 1) Notice to any of our agents or knowledge possessed by any of our agents or any other persons acting on our behalf shall not effect a waiver or a change in any part of this policy nor stop us from asserting any right under the terms of the policy The terms of this policy shall not be waived nor changed, except by written endorsement issued to form a part of this policy 2) This policy embodies all agreements existing between the "insured" and us or any of our agents relating to this insurance I. Other Insurance This insurance shall be in excess of any other insurance available to the "insured" whether the other insurance is stated to be primary, pro rata, contributory, excess, contingent or otherwise, unless the other insurance is written only as specific excess insurance over the limits of liability provided by this policy J. Assignment of Interest Assignment of interest under this policy shall not bind us unless our consent is endorsed thereon. K. Authorization By acceptance of this policy, the "insured" confers upon you, the first named "insured" exclusive authority to provide us notice of a "claim", to give and receive notices to and from us with respect to the cancellation of this policy; the payment of premiums and amounts owing under the "deductible" when due; the receiving of any return premiums that may become due under this policy; and you hereby agree to act on behalf of any CLMCF 1006 05 00 Page 9 of 11 "insured". No insurance agent or broker is authorized to act as our agent to receive reports or notices with respect to Policy and any reports or notices to an insurance agent or broker shall not constitute compliance with the terms and conditions of this Policy. L. Integration of Document 1) All the provisions of this policy shall be read together as one integrated document. No provision or any part thereof is intended to be separable from the balance of the policy provisions. The meaning of each provision of this policy is created by what is written in the balance of the policy provision, and we have issued this policy in contemplation of the foregoing method of giving meaning to the policy. 2) If any provision of this policy is held to be void by a court of competent jurisdiction, then the balance of the provisions of this policy shall still be interpreted in accordance with the preceding paragraph M. Service of Suit 1) In the event of our failure to pay any amount claimed to be due under the policy, we shall, at the request of the "insured", submit to the jurisdiction of any court of competent jurisdiction within the United States and will comply with all requirements necessary to give such court jurisdiction, and all matters arising hereunder shall be determined in accordance with the law and practice of such court. Nothing in this clause constitutes nor should be understood to constitute a waiver of our right to commence an action in any court of competent jurisdiction in the United States, to remove an action to a United States District Court or to seek a transfer of a case to another court, as permitted by the laws of the United States or of any State in the United States In any "lawsuit" instituted against it upon this contract, we will abide by the final decision of such court or of any appellate court in the event of an appeal 2) Further, pursuant to any state, territory or district of the United States which makes provision therefor, we hereby designate the Superintendent, Commissioner or Director of Insurance or other officer specified for that purpose in the relevant state statute, or the successor in office, as our true and lawful attorney, upon whom may be served any lawful process in any action, suit or proceeding instituted or on behalf of any "insured" hereunder arising out of this contract of insurance, and we hereby designate the persons identified below as the persons to whom the said officer is authorized to mail such process or true copy thereof IN WITNESS WHEREOF, we have caused this policy to be signed by our President and Secretary, but this policy shall not be valid unless countersigned on the Declarations page by our duly authorized representative CLMCF 1006 05 00 Page 10 of 11 Coregis Insurance Company 181 W. Madison Street Suite 2600 Chicago, IL 60602 1-800- 879-4428 - Main Number Ow: 4_:3--__ Michael P. Gill Chairman, President & Chief Executive Officer Coregis Insurance Company CLMCF 1006 05 00 Page 11 of 11 CORia1, A GE Capital Company THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY NON -MONETARY SUIT DEFENSE COSTS REIMBURSEMENT ENDORSEMENT As respects any "Suit" against an Insured seeking only non -monetary relief by reason of a "Wrongful Act", and which is otherwise covered by this Policy, we shall reimburse the Insured for reasonable defense fees and disbursements incurred in the defense of any such "Suit", subject to the following conditions: 1 "Suit" is first filed against an Insured during the policy period, and written report of the "Suit" is received during the "policy period" or within 60 days of the end of the "policy period". 2. The limit of our liability for such fees and disbursements shall not exceed $10,000 per "Suit" and $50,000 in the aggregate for the "policy period". 3 Payments under this Endorsement shall be within the limit of liability as stated in the Declarations and Section VI. LIMITS OF LIABILITY. 4. We shall have no duty to investigate or defend any such "Suit". 5. We shall have the right, at our option and expense, to investigate, take over the defense, or associate in the defense of any such "Suit". 6. The insured shall be required to pay all defense fees and disbursements up to $2,500 before we have any duty to reimburse the Insured. For the purposes of this endorsement only: 1. "Suit" means an adjudicatory proceeding in a court of law. 2. "Wrongful Act" means an "insured's" act, error or omission, other than a "wrongful employment practice", that allegedly breaches a legal duty. All other definitions, 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 otherwise stated. CLMEF 1011 10/00 CORta A GE Capital Company THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. FLORIDA PROFESSIONAL LIABILITY CANCELLATION AND NONRENEWAL ENDORSEMENT This endorsement modifies insurance provided under the following: Errors and Omissions and Employment Practices Liability Insurance Policy CLMCF 1006 05 00 Section VII. General Conditions, Subsection G. Cancellation is amended to read as follows: G. Cancellation 1. We may cancel this policy by mailing or delivering to the first Named Insured written notice of cancellation, accompanied by the reasons for cancellation, at least a. 10 days before the effective date of cancellation if we cancel for nonpayment of premium or loss of license, or b. 60 days before the effective date of cancellation if we cancel for any other reason 2. Cancellation Of Policies In Effect For More Than 90 Days If this policy has been in effect for more than 90 days, we may cancel this policy only for one or more of the following reasons a. Nonpayment of premium; b. The policy was obtained by a material misstatement, c. Failure to comply with underwriting requirements established within 90 days of the effective date of coverage; d. A substantial change in the risk covered by the policy; or e. The cancellation is for all insureds under such policies for a given class of insureds. N on renewa I 1. If we decide not to renew this policy, we will mail or deliver to the first Named Insured written notice of non - renewal, accompanied by the reason for nonrenewal, at least 60 days prior to the expiration of thispolicy, if we nonrenew for any other reason 2. Any notice of nonrenewal will be mailed or delivered 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 CLMSF 1064 06 00 Copyright, Insurance Services Office, Inc , 1996 Page 1 of 1 0