Community Association Underwriters of America, Inc. · 2016. 6. 6. · 2. The association insurance policy carries a deductible. In the event of a claim, the association may seek

March 01, 2016

Carol BurtonHidden Wood West AssociationC/O Diamond Community Management7512 Stanich Lane, Suite 6Gig Harbor, WA 98335

Re: Policy Date: February 27, 2016CAU Account # 24085Policy # CAU225487-2

Dear Carol,

We are pleased to enclose the association’s package policy which is written for a one year term. In addition we are enclosing the VolunteerAccident policy for your review.

We are also including a sample certificate of insurance for this association. The certificate includes basic policy coverage information. Youmay wish to use this in your resale packages or as a quick coverage reference. Unit owners requesting certificates of insurance shouldbe directed to the CAU website at www.cauinsure.com. Simply click on “Certificates of Insurance” and follow the prompts. Certificatescan also be ordered by calling 267-757-7110 and following the directions on the recording. Certificates can be ordered 24 hours a day,seven days a week.

Please take a moment now to review the following items:

To assist you with the communication of insurance information to the members of your community, you will find a “Unit OwnersFact Sheet”. This fact sheet includes a general description of the association’s coverage, information about filing claims and

•

instructions for ordering certificates of insurance. We recommend that this document be distributed to all of the unit owners in yourcommunity.The “Environmental Impairment Liability” brochure describes the type of protection provided by this coverage.•Our “Whom to Call” directory provides the contact information for our accounting, claims and customer service representatives.•

The limits of liability chosen by the association were based upon considerations of cost and risk factors. Please notify us in writing if youdesire any changes or increases in these limits.

Please contact us if you have any questions regarding your policy or these documents. Thank you for choosing CAU as your insuranceprovider.

Sincerely,

Dawn DarvasManager, Customer Service

cc: Amy S. Clements, CIRMS, ARM

Enc.

2 Caufield Place - Newtown, PA 18940Phone (267) 757-7100 - Fax (267) 757-7400

Community Association Underwriters of America, Inc.

www.cauinsure.com

CERTIFICATE OF INSURANCE REQUEST FORM

To obtain a Certificate of Insurance, please complete the information below.Your request can be faxed to 267-757-7410, e-mailed to [email protected], or

visit our website for processing at www.cauinsure.com.Requests are processed in a timely manner and mailed directly to the Mortgage Holder,

unless forwarding instructions are provided below.

ASSOCIATION/COMPLEX NAME:

UNIT OWNER/SHAREHOLDER:(as they appear on mortgage loan, including middle names or initials)

COMPLETE UNIT ADDRESS:(street name, unit #, city, state and zip code)

MORTGAGE LOAN NUMBER:

MORTGAGE/CERTIFICATE HOLDER:(as should appear on the Certificate of Insurance; including address)

Forwarding instructions:

Company Name:

Attention:

Company Address:

Phone Number:

By providing CAU with a Fax Number and/or E-mail Address,you will be invoiced $30.00 for expedited service.

Fax Number:

E-Mail Address:

2 Caufield Place, Newtown, PA 18940ed 01/09

Community Association Underwriters of America, Inc.

mailto:[email protected]

http://www.cauinsure.com/

Welcome to Community Association Underwriters’ insurance program. This two-page fact sheet isdesigned to assist you in:

• Purchasing your own insurance

• Filing claims

• Ordering certificates of insurance

Key information regarding the association’s insurance policy:

1. The common elements, limited common elements and units are covered.

2. Improvements and betterments and upgrades made at the expense of the current or previous unit ownerare covered. This would include, but is not limited to, upgraded carpeting, cabinets and originally conveyedappliances. Wall coverings, built-in bookshelves and other permanently installed fixtures are also included.

3. The covered causes of loss include: fire, lightning, windstorm, hail, explosion, riot, aircraft and vehicledamage, smoke, vandalism, falling objects, weight of ice, snow or sleet, collapse, sudden and immediatewater escape or overflow from plumbing or appliances, frozen pipes, and convector units.

4. No coverage is provided for wear and tear, deterioration, damage by insects or animals, settling or crackingof foundation, walls, basements or roofs. There is no coverage for damage caused by continuous orrepeated leakage or seepage from appliances or plumbing. This includes, but is not limited to, leakingfrom around the shower, bathtub, toilet or sink. These events are properly classified as maintenanceitems.

Key information regarding unit owner’s insurance needs:

1. You need a condominium owner’s policy, also known as an HO-6, to pick up coverage for your personalproperty, furniture, additional living expenses (in the event your unit is uninhabitable due to a coveredclaim), and personal liability.

2. The association insurance policy carries a deductible. In the event of a claim, the association may seekto recover the deductible from unit owners involved in the claim. Your obligation to pay the deductible maybe offset by your HO-6 policy, subject to your own deductible, if you add building coverage. Ask yourpersonal insurance agent.

Note: This fact sheet is intended to provide a brief summary of insurance issues. In all cases, the declarations, terms, conditionsand exclusions of the actual policy will apply.

Policy: CAU225487-2-0Account: 24085Edition Date: 04/13Page 1 of 2

Hidden Wood West Association

Claims

If you have a claim, notify your association’s management company or designated board member and yourown homeowners insurance carrier. Claims that involve your personal property and furniture must be submittedto your homeowners insurance carrier.

Claim payments under this policy are made to your board of directors as insurance trustee.

Certificates of Insurance

Unit owners can request certificates of insurance by either:

1. Going to our web site at: www.cauinsure.com. Click the “Certificate of Insurance” button and follow theprompts.

2. Calling (267) 757-7110 to obtain a CAU Certificate of Insurance Request Form. Send the completed formto CAU in one of the following ways:• Fax the CAU Certificate of Insurance Request Form to:

(267) 757-7410• Mail the CAU Certificate of Insurance Request Form to:

Certificate Department - CAU, 2 Caufield Place, Newtown, PA 18940

Web and faxed certificate of insurance requests are processed within 24 business hours.

We appreciate your association’s business, and we are committed to providing you and your community withprompt and professional service. If we can be of further assistance, please call our customer service departmentat 800-228-1930.

Note: This fact sheet is intended to provide a brief summary of insurance issues. In all cases, the declarations, terms, conditionsand exclusions of the actual policy will apply.

Policy: CAU225487-2-0Account: 24085Edition Date: 04/13Page 2 of 2

Hidden Wood West Association

www.cauinsure.com

Call us toll free at (800) 228-1930 or use our direct dial phone numbers. To expedite your call, pleasehave your CAU account number or policy number available.

YOUR CUSTOMER SERVICE CONTACTAll service requests, such as change requests and coverage inquiries should be directed to our customer servicerepresentatives.

Fax: (267) 757-7449Direct Dial: (267) 757-7149Extension: 7149Dawn DarvasEmail: [email protected]

CLAIMS REPORTINGTo report a claim:

Go to our web site at: www.cauinsure.com. Click the “Claims” button for Claims Forms and reporting instructions.

[email protected] Claims Email:

(267) 757-7424Direct Claims Fax:

(267) 757-7128For general claims questions call:(267) 757-7131

All claims must be reported by a member of the association’s board of directors or your property manager.

CERTIFICATES OF INSURANCEUnit owners can obtain certificates of insurance by means of the following:

1. Go to our web site at: www.cauinsure.com. Click the “Certificates of Insurance” button and follow the prompts.

2. Complete the CAU Certificate of Insurance Request Form which can be found in your policy packet or call(267) 757-7110 for instructions on how to obtain this form. Send the completed form to CAU in one of the followingways:

• Fax the CAU Certificate of Insurance Request Form to:(267) 757-7410

• Mail the CAU Certificate of Insurance Request Form to:Certificate Department – CAU, 2 Caufield Place, Newtown, PA 18940

Online and faxed certificate of insurance requests are processed within 24 business hours.

BILLING INQUIRIESAll questions about your payment plan or invoices should be directed to our accounting department.

Fax: (267) 757-7421Direct Dial: (267) 757-7121Extension: 7121Jean CollinsEmail: [email protected]

Fax: (267) 757-7422Direct Dial: (267) 757-7122Extension: 7122Pat WilliamsEmail: [email protected]

YOUR LOCAL OFFICEPlease direct inquiries pertaining to new or renewal policies or additional coverage to your local office.

Fax: (425) 688-1238Phone: (800) 228-1930Amy S. ClementsEmail: [email protected]

Account: 24085Edition Date: 02/14

WHOM TO CALL


www.cauinsure.com


www.cauinsure.com


Condominium PolicyMember of the QBE Insurance Group

DeclarationsPOLICY PERIOD POLICY NUMBER: CAU225487-2

FROM: 02/27/2016 TO: 02/27/2017 ANNUAL PREMIUM: $11,507.00

12:01 A.M. Standard Time at your mailing address

IN RETURN FOR THE PAYMENT OF THE PREMIUM, AND SUBJECT TO ALL THE TERMS OF THIS POLICY, WE AGREE WITHYOU TO PROVIDE THE INSURANCE STATED IN THIS POLICY.

Hidden Wood West AssociationNAMED INSURED

C/O Diamond Community ManagementMAILING ADDRESS7512 Stanich Lane, Suite 6Gig Harbor, WA 98335

Directory of DeclarationsPAGE NO.DECLARATIONS TITLE

1POLICY DECLARATIONS2DESCRIPTION OF PREMISES DECLARATIONS

3, 4PROPERTY DIRECT COVERAGES DECLARATIONS5PROPERTY CONSEQUENTIAL COVERAGES DECLARATIONS6PROPERTY ADDITIONAL CAUSES OF LOSS DECLARATIONS6PROPERTY SUPPLEMENTARY PAYMENTS DECLARATIONS6EARTHQUAKE AND “VOLCANIC ERUPTION” DECLARATIONS7LIABILITY COVERAGE DECLARATIONS8DIRECTORS AND OFFICERS LIABILITY COVERAGE DECLARATIONS9ENVIRONMENTAL IMPAIRMENT LIABILITY COVERAGE DECLARATIONS

10AMENDATORY DECLARATIONS

Community Association Underwriters Of America40 Lake Bellevue, Suite 100

Bellevue, WA 98005

BYCOUNTERSIGNED(DATE) (AUTHORIZED REPRESENTATIVE)

Community Association Underwriters of America, Inc.2 Caufield Place, Newtown, PA 18940

Page 1 of 1003/01/2016POLICY NUMBER: CAU225487-2* 24085 *CAU 1001 10/07

Description of Premises

Declarations

Coverage is provided for a clubhouse and fifteen one-story frame condominium buildings containing thirty residential units.The premises is located at 7117 40th Street W (units 1-30), University Place, Pierce County, WA 98466.

INSURANCE TRUSTEE


Property Coverage

Declarations(#) WHERE SHOWN ON THE DECLARATIONS REFERS TO POLICY PAGE NUMBERS

VALUATION (15)

MEANS GUARANTEED REPLACEMENT COST (15)G/R/CMEANS ACTUAL COST (15)A/CMEANS INCREASED REPLACEMENT COST (15)I/R/CMEANS ACTUAL CASH VALUE (15)A/C/VMEANS MARKET VALUE (16)M/VMEANS ACTUAL LOSS SUSTAINED (15)A/L/SMEANS REPLACEMENT COST (15)R/CMEANS APPRAISED VALUE (16)A/V

MEANS FACE VALUE (16)F/V

PROPERTY DIRECT COVERAGES DECLARATIONS

DEDUCTIBLEVALUATIONLIMIT OF INSURANCECOVERAGE

BUILDINGS AND STRUCTURES (1)$2,500G/R/CGuaranteed Replacement CostBUILDINGS (1)

$2,500G/R/CGuaranteed Replacement CostSTRUCTURES (1)

“UNITS” (1)$2,500G/R/CGuaranteed Replacement CostORIGINAL SPECIFICATIONS (1)

$2,500G/R/CGuaranteed Replacement CostADDITIONAL INSTALLATIONS (1)

$2,500G/R/CGuaranteed Replacement CostCOMMUNITY PERSONAL PROPERTY (1)

$1,000G/R/CGuaranteed Replacement CostSTRUCTURAL GLASS AND SIGNS (2)

BRIDGES, BULKHEADS, DOCKS, PIERS,$500R/C$10,000RETAINING WALLS, WHARVES (2)

$500R/C$10,000SATELLITE DISHES AND ANTENNAS (2)

$0R/C$10,000NATURAL PROPERTY (2)$0R/C$500Maximum per tree, plant, shrub or lawn

NEWLY ACQUIRED OR CONSTRUCTEDPROPERTY (2)

NEWLY ACQUIRED BUILDINGS$2,500R/C$250,000AND STRUCTURES (2)

NEWLY CONSTRUCTED BUILDINGS$2,500R/C$250,000AND STRUCTURES (2)


Property Coverage


VALUATION (15)



PROPERTY DIRECT COVERAGES DECLARATIONS


NEWLY ACQUIRED COMMUNITY$2,500R/C$250,000PERSONAL PROPERTY (2)

$0F/V, M/V$15,000“MONEY” AND “SECURITIES” (2)

COMPUTER EQUIPMENT, “MEDIA”$500R/C$25,000AND SUPPLIES (3)

$0A/C$10,000PAPERS, RECEIVABLES AND RECORDS (3)

$500A/V$15,000“FINE ARTS” (3)

“PERSONAL EFFECTS” (3)

$0A/C/V$5,000Per Person$0A/C/V$15,000Per Occurrence

PERSONAL PROPERTY OF OTHERS (3)

$0A/C/V$5,000Per Person$0A/C/V$15,000Per Occurrence

$0R/C$100,000ELEVATOR COLLISION (3)

$2,500R/C$25,000OFF “PREMISES” (3)

$2,500R/C$25,000IN TRANSIT (3)

$10,650,000“RATABLE LIMIT” (56)


Property Coverage


VALUATION (15)



PROPERTY CONSEQUENTIAL COVERAGE DECLARATIONS


MAINTENANCE FEES AND$0A/L/SFULLASSESSMENTS (4)

$0A/L/SFULLCOMMUNITY INCOME (4)

$0A/CFULLEXTRA EXPENSE (4)

$0A/L/SFULLACCOUNTS RECEIVABLE EXPENSES (4)

$0A/C$25,000“MEDIA” COSTS (4)

“VALUABLE PAPERS AND RECORDS”$0A/C$25,000COSTS (4)

ORDINANCE OR LAW COVERAGE (4)

COVERAGE FOR LOSS TO THE$2,500G/R/CGuaranteed Replacement CostUNDAMAGED PORTION OF THE BUILDING (5)

$2,500A/C$250,000DEMOLITION COST COVERAGE (5)

INCREASED COST OF CONSTRUCTION$2,500I/R/C$250,000COVERAGE (5)

INCREASED PERIOD OF RESTORATION$0A/L/S, A/CFULLCOVERAGE (5)

REMOVAL COVERAGES (5)

$0A/C$250,000DEBRIS REMOVAL (5)

$0R/C$250,000PROPERTY REMOVAL (5)

$0R/C$10,000REMOVAL OF FALLEN TREES (5)$0R/C$500Maximum per tree, plant, shrub or lawn


Property Coverage


VALUATION (15)



PROPERTY ADDITIONAL CAUSES OF LOSS COVERAGE DECLARATIONS


WORLDWIDE CRIME COVERAGES (10)

$0A/L/SFULL“EMPLOYEE DISHONESTY” (10)

$0A/C$50,000“COMPUTER FRAUD” (10)

$0A/C$50,000“DEPOSITORS FORGERY” (11)

PROPERTY SUPPLEMENTARY PAYMENTS DECLARATIONS


10% ofARSON, VANDALISM, AND DELIBERATE$0Paid Claim$5,000AND MALICIOUS ACTS REWARD (11)

$0A/C$10,000FIRE DEPARTMENT SERVICE CHARGES (11)

$0A/C$1,000FIRE EXTINGUISHER RECHARGE (11)

$0A/C$25,000“POLLUTANT” CLEAN UP AND REMOVAL (11)Per 12 month Period

EARTHQUAKE AND “VOLCANIC ERUPTION” DECLARATIONS

(#) WHERE SHOWN ON THE DECLARATIONS REFERS TO EARTHQUAKE AND “VOLCANIC ERUPTION” COVERAGE PART PAGE NUMBERS


No CoverageEARTHQUAKE AND “VOLCANIC ERUPTION” (1)


Liability Coverage


TYPE OF LIMITLIMIT OF INSURANCECOVERAGE

“OCCURRENCE”$1,000,000“BODILY INJURY” AND “PROPERTY DAMAGE” (20)

“OFFENSE”$1,000,000“PERSONAL INJURY” AND “ADVERTISING INJURY” (20)

“OCCURRENCE”$1,000,000“HIRED AUTO” AND “NONOWNED AUTO” (20)

PROPERTY DAMAGE“OCCURRENCE”$1,000,000LEGAL LIABILITY - REAL PROPERTY (21)

GARAGE AND PARKING AREADEDUCTIBLELEGAL LIABILITY (21)

“OCCURRENCE”$25,000$500Comprehensive Coverage (21)“OCCURRENCE”$25,000$500Collision Coverage (21)

“OCCURRENCE”$5,000MEDICAL PAYMENTS (21)

AGGREGATE$1,000,000PRODUCTS/COMPLETED OPERATIONS (36)

AGGREGATE$1,000,000“EMPLOYERS LIABILITY” (36)Coverage is provided on excess basis only

SCHEDULE OF “UNDERLYING INSURANCE”

LIMITS OF INSURANCEPOLICY NUMBEREFFECTIVE DATESUNDERLYING INSURERBodily Injury by Accident“EMPLOYERS LIABILITY”

Each Accident

Bodily Injury by Disease

Policy Limit

Each Employee

Bodily Injury“AUTO”Each Person

Each Accident

Property Damage“OWNED AUTO”Each Accident“HIRED AUTO”

Combined Single Limit“NONOWNED AUTO”Each Accident

OTHERGeneral Aggregate

Products - CompletedOperations Aggregate

Personal andAdvertising Injury

Each Occurrence


Directors & Officers Liability Coverage


THIS COVERAGE PART PROVIDES CLAIMS MADE COVERAGE

LIMIT OF INSURANCECOVERAGE

ERRORS AND OMISSIONS INSURANCE (38)

$1,000,000EACH “LOSS” (38)

$1,000,000EACH “POLICY YEAR” (42)

NONERETAINED LIMIT (42)

RETROACTIVE DATE (38)

This insurance does not apply to “loss” from “wrongful acts” which took place before the Retroactive Date, if any, shownbelow:

NONERETROACTIVE DATE:

(Enter Date or “None” if no Retroactive Date applies)

OPTIONAL EXTENDED REPORTING PERIOD (42)

The premium for the Optional Extended Reporting Period is: $765


Environmental Impairment Liability Coverage

Declarations(#) WHERE SHOWN ON THE DECLARATIONS REFERS TO ENVIRONMENTAL IMPAIRMENT LIABILITY COVERAGE PART PAGE NUMBERS

THIS COVERAGE PART PROVIDES CLAIMS MADE COVERAGE

LIMIT OF INSURANCECOVERAGE

ENVIRONMENTAL IMPAIRMENT LIABILITY INSURANCE (1)

$500,000EACH “LOSS” (7)

$500,000EACH “POLICY YEAR” (6)

$5,000RETAINED LIMIT (4)

(Applicable to each “loss”)

RETROACTIVE DATE (5)

This insurance does not apply to “loss” which takes place before the Retroactive Date, if any, shown below:

NONERETROACTIVE DATE:

(Enter Date or “None” if no Retroactive Date applies)

OPTIONAL EXTENDED REPORTING PERIOD: one year from the expiration date of the “policy period” (4)

The premium for the Optional Extended Reporting Period is: $173

OTHER SCHEDULES & ENDORSEMENTS:

NOTICEAny emergency arising out of “pollution conditions” covered by this Coverage Part

should be reported immediately to the On Call 24 hour hotline at 1-800-823-7351, administeredby XL Specialty Claims, a division of the XL Insurance companies.


Amendatory


EDITION DATEFORM TITLEFORM NUMBER

07/01Condominium PolicyCAU 1000

12/12Signature PageCAU 1101

07/01Lead ExclusionCAU 1111

07/01Employee Dishonesty - Property ManagerCAU 1130

07/01Ice Damming Deductible (Applies on a Per Unit Basis) - $5,000CAU 1140

07/01Water Damage Deductible - $5,000CAU 1141

07/01Sprinkler Leakage Deductible - $5,000CAU 1147

07/01Sewer Backup Deductible - $5,000CAU 1168

07/01Stop Gap - Employers Liability Coverage PartCAU 1170

07/01Property Manager Directors and OfficersCAU 1180

01/11Power Failure or Interruption Coverage - Sump PumpCAU 1188

05/11Washington Changes - Amendatory EndorsementCAU 1248

05/02"Fungus," Wet Rot and Dry Rot CoverageCAU 1700

05/02"Fungi" ExclusionCAU 1800 WA

01/15Cap on Losses from "Certified Acts of Terrorism"CAU 1930

01/15Disclosure Pursuant to Terrorism Risk Insurance ActCAU 1985

08/15Nuclear, Biological, Chemical and Radiological Hazards ExclusionCAU 1990 WA

07/01Exclusion of Certain Computer Related LossesCAU 1999

07/01Environmental Impairment Liability Coverage PartCAU 2200


CAU 1000 – Condominium Association Insurance PolicyCAU 1010 – Cooperative Apartment Insurance PolicyCAU 1020 – Homeowners Association Insurance PolicyCAU 1030 – Office Condominium Association Insurance Policy

SIGNATURE PAGEYOUR COMPLETE POLICY CONSISTS OF THE POLICY JACKET WITH THE COVERAGE FORM,DECLARATIONS AND ENDORSEMENTS, IF ANY.

In Witness Whereof, QBE Insurance Corporation has caused this policy to be executed and attested, and, ifrequired by state law, this policy shall not be valid unless countersigned by a duly authorized representativeof QBE Insurance Corporation.

Bob James

President

Jose Ramon Gonzalez

Secretary

QBE INSURANCE CORPORATIONA Stock Company

Home Officec/o CT Corporation System116 Pine Street, Suite 320

Harrisburg, Pennsylvania 17101

Administrative Office88 Pine Street

Wall Street PlazaNew York, New York 10005

Includes copyrighted material of Insurance Services Office, Inc. with its permissionCAU225487-2-0Page 1 of 1CAU 1101 12/12

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

This signature page replaces the Signature Page which is a part of the following policies:

CONDOMINIUM POLICYCOOPERATIVE APARTMENT POLICYHOMEOWNERS ASSOCIATION POLICYOFFICE CONDOMINIUM POLICY

The following exclusion is added and shall apply to:

1. III. PROPERTY CAUSE OF LOSS, EXCLUSIONS, AND LIMITATIONS SECTION, B. EXCLUSIONS;

2. XI. GENERAL LIABILITY EXCLUSIONS SECTION;

3. XVI. EXCESS LIABILITY EXCLUSIONS SECTION; and

4. XXII. DIRECTORS AND OFFICERS LIABILITY EXCLUSIONS SECTION.

LEAD

Caused by, based on, attributable to, related to or in any manner and at any time arising out of:

a. The use, installation, storage, withdrawal, removal, encapsulation, destruction, containment, testing, distribution,exposure, ownership, sale or disposal of lead, lead fibers, lead dust or material containing lead.

b. Any error or omission in supervision, instructions, recommendations, notices, warnings or advice given, or whichshould have been given, in connection with lead, lead dust, lead fibers or material containing lead.



Lead Exclusion

This endorsement modifies insurance provided under the following:


Definition 15. "Covered Employee" (PROPERTY) of XXVIII. DEFINITIONS SECTION is replaced by:

15. "Covered Employee" (PROPERTY) means:

a. Any natural person:

(1) While in your service (and for 30 days after termination of service); and

(2) Whom you compensate directly by salary, wages or commissions; and

(3) Whom you have the right to direct and control while performing services for you; or

b. Any natural person employed by an employment contractor while that person is subject to your directionand control and performing services for you. However, any such person is excluded while having careand custody of property outside the "premises."

c. Any natural person who is a duly elected or appointed director, trustee, officer, committee volunteer ormember, whether salaried or not, and any other person acting on behalf or at the direction of an officeror board of directors of your Association with the exception of the developer when acting in a capacityas the developer.

d. Any natural person or any organization while acting as your real estate manager.

But covered employee does not include any employee, director, officer, board member, or real estate managerimmediately upon discovery by you or any of your officers and directors not in collusion with the employee,director, officer, board member, or real estate manager of any dishonest act committed by that employee,director, officer, board member, or real estate manager, whether before or after being hired or appointed byyou.



Employee Dishonesty - Property Manager

This endorsement modifies insurance provided by the Property Coverage Part of the following:


In accordance with VI. PROPERTY CONDITIONS SECTION, K. DEDUCTIBLE, 2., the applicable deductible is amendedto:

$5,000, this deductible will be applied separately to each "unit" that actually sustains resulting water damage with regardto loss or damage to I.A.2. "UNITS" as provided under III.C. LIMITATIONS, 2.



"Per Unit" Ice Damming Deductible



VI. PROPERTY CONDITIONS SECTION, K. DEDUCTIBLE, is amended to include the following water damagedeductible:

$5,000, will be deducted from the amount of all loss or damage in any one "occurrence" caused when water is the onlycause of the loss or damage, otherwise the applicable deductible shown in the "Declarations" applies.

The WATER DAMAGE DEDUCTIBLE is only applicable to:

I.A.1. Buildings and Structures

I.A.2. "Units"

OTHER (Specify):



Water Damage Deductible



VI. PROPERTY CONDITIONS SECTION, K. DEDUCTIBLE, is amended to include the following sprinkler leakagedeductible:

$5,000 will be deducted from the amount of all loss or damage in any one "occurrence" caused when sprinkler leakageis the only cause of loss or damage, otherwise the applicable deductible shown in the "Declarations" applies. Sprinklerleakage, meaning leakage, discharge or freezing of any substance from an automatic sprinkler system or fire protectivesystem, including the collapse of a tank that is part of the system.



Sprinkler Leakage Deductible



VI. PROPERTY CONDITIONS SECTION, K. DEDUCTIBLE, is amended to include the following sewer backup deductible:

$5,000 will be deducted from the amount of all loss or damage in any one "occurrence" caused when water backs upfrom a sewer or drain and is the only cause of loss or damage, otherwise the applicable deductible shown in the"Declarations" applies.



Sewer Backup Deductible


LIMITS OF INSURANCE

"Bodily Injury by Accident" $1,000,000Each Accident

"Bodily Injury by Disease" $1,000,000Each Employee

"Bodily Injury by Disease" $1,000,000Policy Limit

A. EMPLOYERS LIABILITY COVERAGE SECTION

We will pay those sums that you become legallyobligated to pay as damages because of "bodily injury"to your employees to which this insurance appliesprovided:

1. Such employee is reported and declared underthe Workers Compensation State Fund in the stateshown in Description of Premises "Declarations";and

2. Such employment is necessary or incidental toyour work in that designated state.

The damages we will pay, where recovery is permittedby law, include damages for:

1. Which you are liable to a third party by reason ofa claim or suit against you by that third party torecover the damages claimed against such thirdparty as a result of injury to your employee;

2. Care and loss of services; and

3. Consequential "bodily injury" to a spouse, child,parent, brother or sister of the injured employee;

We have the right and duty to defend any claim or"suit" seeking damages payable under A.EMPLOYERS LIABILITY COVERAGE SECTION.

Provided that these damages are the directconsequence of "bodily injury" that arises out of andin the course of the injured employee's employmentby you; and

4. Because of "bodily injury" to your employee thatarises out of and in the course of employment,claimed against you in a capacity other than asemployer.

This Employers Liability Insurance applies to "bodilyinjury by accident" or "bodily injury bydisease." "Bodily injury" includes resulting death.

1. The "bodily injury" must arise out of and in thecourse of the injured employee's employment byyou.

2. "Bodily injury by accident" must occur during the"policy period."

3. The "bodily injury" must take place in the"coverage territory."

4. "Bodily injury by disease" must be caused oraggravated by the conditions of youremployment. The employee's last day of lastexposure to the conditions causing or aggravatingsuch "bodily injury by disease" must occur duringthe policy period.

No other obligation or liability to pay sums or performacts or services is covered unless explicitly providedunder B. EMPLOYERS LIABILITY DEFENSE OFCLAIM OR "SUIT" SECTION

CAU225487-2-0Page 1 of 4CAU 1170 07/01

Stop Gap - Employers Liability Coverage Part

Throughout this policy, the words "you" and "your" refer to the named insured shown in the "Declarations." "We,""us," and "our" refer to the company providing this insurance. Other words and phrases that appear in quotation markshave special meanings. Refer to H. EMPLOYERS LIABILITY DEFINITIONS SECTION of this Stop Gap - EmployersLiability Coverage Part.

The word "insured" means any person or organization qualifying as such under E. EMPLOYERS LIABILITYWHO IS AN INSURED SECTION.

This Stop Gap - Employers Liability Coverage Part along with XXVII. COMMON POLICY CONDITIONS SECTIONand XXVIII. DEFINITIONS SECTION of the policy contain all our obligations regarding this coverage. We haveno other obligation unless the policy, that this Stop Gap - Employers Liability Coverage Part is part of, isamended accordingly.

The amount we will pay for damages is limited as described in F. EMPLOYERS LIABILITY LIMITS OF INSURANCESECTION.

B. EMPLOYERS LIABILITY DEFENSE OF CLAIM OR"SUIT" SECTION.

We may at our discretion, investigate any "bodily injuryby accident" or "bodily injury by disease" and settleany claim or "suit" that may result. Our right and dutyto defend end when we have used up the applicablelimit of insurance in the payment of judgments orsettlements under A. EMPLOYERS LIABILITYCOVERAGE SECTION. We will pay "defense costs,"with respect to any claim or "suit" we defend, inaddition to the limit of insurance.

C. EMPLOYERS LIABILITY EXCLUSIONS SECTION

This insurance does not apply to:

1. FINES OR PENALTIES

Any assessment, penalty or fine levied by anyregulatory or inspection agency or authority.

2. ASSUMED LIABILITY

Any assumption of liability in a contract oragreement. This exclusion does not apply to awarranty that your work will be done in aworkmanlike manner.

3. LAW VIOLATIONS

"Bodily injury" sustained by any employee whileemployed in violation of any law with your actualknowledge of the insured or the actual knowledgeof your directors or officers.

4. FAILURE TO COMPLY WITH WORKERSCOMPENSATION LAWS

"Bodily injury" to any employee when you aredeprived of any defense or defenses or areotherwise subject to penalty because of defaultin premium payment or any other failure to complywith the provisions of any Workers CompensationLaw.

5. FEDERAL STATUTES

"Bodily injury" sustained by a master or memberof a crew of any vessel or by any employee of theinsured in the course of any employment to theextent it is compensable under the:

1. United States Longshoremen's and HarborWorkers' Compensation Act, U.S.C.A. (1927)Title 33, Sections 901-950;

2. Federal Employers Liability Act, U.S.C.A.(1906) Title 45, Sections 51-60;

3. Federal Mine Safety and Health Act, 30U.S.C.A. (1977) Sub Chapter 4, Sections931-942;

including all amendments thereto.

6. INTENTIONAL BODILY INJURY

"Bodily injury" sustained because of any actcommitted intentionally by you or at your direction.

But this exclusion does not apply to your legalliability other than benefits or compensationprovided under any workers compensation act,resulting from the deliberate intentional act of anemployee or agent, other than an executive officeror director, that produce injury or death to anotheremployee when such act is committed within thescope of employment.

7. WORKERS COMPENSATION

Any obligation of the insured under a workerscompensation, disability benefits or unemploymentcompensation law or other similar law.

8. EMPLOYMENT RELATED PRACTICES

Any damages arising out of personnel practices,policies, acts or omissions including coercion,criticism, demotion, evaluation, reassignment,discipline, defamation, harassment, humiliationor termination of, or discrimination against anyemployee.

E. EMPLOYERS LIABILITY WHO IS AN INSUREDSECTION

No person or organization is an insured with respectto the conduct of any current or past partnership orjoint venture that is not shown as a Named Insured inthe "Declarations."

Each of the following is an insured:

1. You.

2. Your directors and executive officers, but only withrespect to their duties as such.

3. Any organization you newly acquire or form, otherthan a partnership or joint venture, and over whichyou maintain ownership or majority interest, will

CAU225487-2-0Page 2 of 4CAU 1170 07/01


qualify as a Named Insured if there is no similarinsurance available to that organization.

However:

a. Coverage under this provision is afforded onlyuntil the 90th day after you acquire or formthe organization or the end of the "policyperiod," whichever is earlier;

b. Coverage does not apply to "bodily injury" orproperty damage that occurred before youacquired or formed the organization.

F. EMPLOYERS LIABILITY LIMITS OF INSURANCESECTION

1. The limits of insurance shown in the "Declarations"and the provisions of this section determine themost we will pay regardless of the number of:

a. insureds and additional insureds;

b. claims made or "suits" brought; or

c. persons or organizations making claims orbringing "suit."

2. "BODILY INJURY BY ACCIDENT" limit ofinsurance shown in this Coverage Part is the mostwe will pay for the sum of all damages coveredby this insurance because of "bodily injury" to oneor more employees in any one accident.

A disease is not "bodily injury by accident" unlessit results directly from "bodily injury by accident."

3. "BODILY INJURY BY DISEASE" POLICY LIMITlimit of insurance shown in this Coverage Part isthe most we will pay for the sum of all damagescovered by this insurance and arising out of"bodily injury by disease", regardless of thenumber of employees who sustain "bodily injuryby disease." The "BODILY INJURY BYDISEASE" EACH EMPLOYEE limit of insuranceis the most we will pay for the sum of all damagesbecause of "bodily injury by disease" to any oneemployee. "Bodily injury by disease" does notinclude disease that results directly from a "bodilyinjury by accident."

4. The limits of liability of this Coverage Part applyseparately to each consecutive annual period andto any remaining period of less than 12 months,starting with the beginning of the "policy period"shown in the "Declarations," unless the "policy

period" is extended after issuance for an additionalperiod of less than 12 months. In that case, theadditional period will be deemed part of the lastpreceding period for purposes of determining thelimits of insurance.

G. EMPLOYERS LIABILITY CONDITIONS SECTION

In addition to XIII. GENERAL LIABILITY CONDITIONSSECTION and XX. LIABILITY CONDITIONSSECTION, this coverage part is subject to the followingconditions.

1. MAINTENANCE OF WORKERSCOMPENSATION

You must maintain full workers compensationinsurance coverage in the Workers CompensationState Fund in the state shown in Description ofPremises "Declarations" or be a qualified selfinsurer approved by the State WorkersCompensation Commission.

2. SIMILAR INSURANCE

This insurance supersedes and replaces any othersimilar insurance which may be found elsewherein this policy.

3. PREMIUM COMPUTATION

We will compute all premiums for this Stop Gap- Employers Liability Coverage Part in accordancewith our rules and rates.

H. EMPLOYERS LIABILITY DEFINITIONS SECTION

Only the following defined terms apply to this CoveragePart:

1. "Bodily Injury" means bodily injury by accident ordisease, including death at any time resultingtherefrom.

2. "Bodily Injury By Accident" means "bodily injury"by an unintended happening, and only suchdisease as results directly from a bodily injury byaccident.

3. "Bodily Injury By Disease" means "bodily injury"as a result from a contraction of a disease.

4. "Coverage Territory" means by disease causedor aggravated by exposure of which the last dayof last exposure, in the employment of the insured,to conditions causing the disease occurs duringthe "policy period," sustained in:

CAU225487-2-0Page 3 of 4CAU 1170 07/01


a. The United States of America, its territoriesor possessions; or

b. Canada;

by any employee of the insured arising out of andin the course of his employment by the insuredeither in operations in the State shown in theDescription of Premises "Declarations" or inoperations necessary or incidental thereto, orsustained while temporarily outside the UnitedStates of America, its territories or possessions,or Canada by any employee of the insured whois a citizen or resident of the United States orCanada arising out of and in the course of hisemployment by the insured in connection withoperations in the State shown in the Descriptionof Premises "Declarations," but this insurancedoes not apply to any "suit" brought in or anyjudgment rendered by any court outside the UnitedStates of America, its territories or possessions,or Canada or to an action on such judgmentwherever brought.

5. "Declarations" means any declarations comprisingpart of the policy.

6. "Defense Costs" means:

a. All expenses we incur;

b. The cost of bonds to appeal a judgment oraward in any "suit" we defend;

c. The cost of bail bonds required because ofaccidents or traffic law violations arising outof the use of any vehicle to which "bodilyinjury" liability coverage under this insuranceapplies. We do not have to furnish thesebonds;

d. The costs of bonds to release attachments,but only for bond amounts within the limit ofinsurance available under F. EMPLOYERSLIABILITY LIMITS OF INSURANCESECTION. We do not have to furnish thesebonds;

e. Reasonable expenses incurred by the insuredat our request to assist us in the investigationor defense of the claim or "suit," includingactual loss of earnings up to $200 a daybecause of time off from work;

f. Costs taxed against the insured in the "suit";

g. Interest on the full amount of any judgmentthat accrues after entry of the judgment andbefore we have paid, offered to pay, ordeposited in court the part of the judgmentthat is within the applicable limit of insurance;and

h. Prejudgment interest awarded against theinsured on that part of the judgment we pay. Ifwe make an offer to pay the applicable limitof insurance, we will not pay any prejudgmentinterest based on that period of time after theoffer.

7. "Incident" means:

a. "Bodily injury" by accident includingcontinuous or repeated exposure tosubstantially the same general harmfulconditions; and

b. The accident or disease which causes the"bodily injury."

8. "Policy Period" means the period from theinception to the expiration date of this policy,shown in the "Declarations" or until its terminationin accordance with XXVII.A. CANCELLATION.

9. "Suit" means a civil proceeding in which damagesto which this insurance applies are alleged.

"Suit" includes:

a. An arbitration proceeding in which suchdamages are claimed and to which you mustsubmit or do submit with our consent; or

b. Any other alternative dispute resolutionproceeding in which such damages areclaimed and to which you submit with ourconsent.

CAU225487-2-0Page 4 of 4CAU 1170 07/01



The following is added to A., XXIII. DIRECTORS AND OFFICERS LIABILITY WHO IS AN INSURED SECTION:

Any person or organization acting as real estate property manager for the Named Insured while performing real estatemanagement duties for the Named Insured, but only with respect to liability for "wrongful acts" committed at the expressdirection of the Named Insured. However, your real estate property manager is not an insured for claims or "suits"brought against them by you.

B.2. under XXIII. DIRECTORS AND OFFICERS LIABILITY WHO IS AN INSURED SECTION is hereby deleted.



Property Manager Directors and Officers

This endorsement modifies insurance provided by the Directors and Officers Liability Coverage Part under the following:


IV. PROPERTY ADDITIONAL COVERED CAUSES OF LOSS SECTION is amended to include the following:

C. Subject to the limit of insurance shown below, we will pay for direct physical loss or damage to “covered property”caused by or resulting from water which backs up through, overflows, or is otherwise discharged from a sump well,if the back up, overflow or discharge results from a power failure, or power interruption to a sump pump or relatedequipment.

DEDUCTIBLEVALUATIONLIMIT OF INSURANCE

$0Replacement Cost$15,000 per occurrence



Power Failure or Interruption Coverage - Sump Pump


A. III. PROPERTY CAUSES OF LOSS, EXCLUSIONSAND LIMITATIONS SECTION is amended asfollows:

(i) B. EXCLUSIONS, 1. is deleted and replaced bythe following:

1. We will not pay for loss or damage caused byany of the excluded events described below.Loss or damage will be considered to havebeen caused by an excluded event if thatevent:

(a.) Directly and solely results in loss ordamage; or

(b.) Initiates a sequence of events that resultsin loss or damage, regardless of thenature of any intermediate or final eventin that sequence.

(ii) B. EXCLUSIONS, 2.a.(3) and 2.b.(2) areamended by the addition of the following:

Except as provided under IV.A. “COLLAPSE”COVERAGE.

B. The following exclusion and related provisionsare added to III. PROPERTY CAUSES OF LOSS,EXCLUSIONS AND LIMITATIONS SECTION, B.EXCLUSIONS, 2.c. MORAL FACTORS (3) and VI.PROPERTY CONDITIONS SECTION, A.CONCEALMENT, MISREPRESENTATION ORFRAUD:

1. We will not pay for loss or damage arising out ofany act committed:

a. By or at the direction of any insured; and

b. With the intent to cause a loss.

2. However, this exclusion or the Concealment,Misrepresentation Or Fraud Condition will notapply to deny an insured’s claim for an otherwise

covered property loss if such loss is caused byan act of “domestic abuse” by another insuredunder the policy, and the insured making claim:

a. Files a police report and cooperates with anylaw enforcement investigation relating to theact of “domestic abuse”; and

b. Did not cooperate in or contribute to thecreation of the loss.

3. If we pay a claim pursuant to Paragraph 2., ourpayment to the insured is limited to that insured’sinsurable interest in the property less anypayments we first made to a mortgagee or otherparty with a legal secured interest in the property.In no event will we pay more than the Limit ofInsurance.

C. VI. PROPERTY CONDITIONS SECTION is amendedas follows:

(i) H. MORTGAGE HOLDER RIGHTS 3.,4.,5.,6.,7.are deleted and replaced by the following:

3. Loss (if any) under this policy, on buildingsonly, shall be payable to the mortgageholder(s), if named as payee(s) on the“Declarations”, as mortgage holder(s) underany present or future mortgage upon theproperty described in and covered by thispolicy, as interest may appear, and in orderof precedence of such mortgages.

a. The terms mortgage, mortgage holder,and mortgagor include deeds of trust andtheir respective parties.

b. This insurance, to the extent of themortgage holder’s interest, shall not beinvalidated by any act or neglect of themortgagor or owner of the describedproperty, or by the use of the premises



Washington Changes - Amendatory Endorsement



for purposes more hazardous than arepermitted by this policy.

c. Any mortgage holder who shall have oracquire knowledge that the premises arebeing used for purposes more hazardousthan are permitted by this policy or thatthe premises have been vacant orunoccupied beyond the period permittedby this policy, shall forthwith notify thiscompany thereof and shall cause theconsent of the company thereto to benoted on this policy; and in the event offailure to do so, all rights of suchmortgage holder hereunder shall fore withterminate.

d. In case the mortgagor or owner shall failto pay any premium due or to becomedue under this policy, the mortgage holderhereby covenants and agrees to pay thesame on demand. The mortgage holderalso covenants and agrees to pay thepremium for any increased hazard for theterm of this policy.

e. This company shall not be liable to themortgage holder for a greater proportionof any loss than the amount herebyinsured shall bear to the policies issuedto, held by, or payable to the mortgageholder, whether collectible or not.

f. Any policy provisions relating to mortgageinterests and obligations are to beincluded and made a part of this H.MORTGAGE HOLDER RIGHTS.

(ii) The following is added to G.TRANSFER OFRIGHTS OF RECOVERY AGAINST OTHERSTO US:

If we pay an insured, who is a victim of “domesticabuse”, for a loss caused by an act of “domesticabuse”, the rights of that insured to recoverdamages from the perpetrator of the abuse aretransferred to us to the extent of our payment.That insured may not waive such rights to recoveragainst the perpetrator of the “domestic abuse”.

(iii) I. INSURED’S DUTIES IN THE EVENT OF LOSSOR DAMAGE 3. is deleted.

(iv) L.VALUATION 1. REPLACEMENT COST a. andb., preceding 1.c., are deleted and replaced bythe following:

a. The amount it would cost to repair or replacethe property, at the time of the loss, at thesame site, regardless if repaired or repairedat the same site or another, without deductionfor depreciation:

(1) With new material of like kind and quality;

(2) With property of the same height, floorarea and style; and

(3) With property intended for the samepurpose;

b. The amount you actually spend in repairingthe damage, or replacing the damagedproperty with new property of similar kind andquality; or

(v) The following is added to L. VALUATION 4.ACTUAL CASH VALUE:

Subject to a. and b. above, the term actual cashvalue means:

(a.) When the damage to property is economicallyrepairable, actual cash value means the costof repairing the damage, less reasonablededuction for wear and tear, deterioration andobsolescence.

(b.) When the loss or damage to property createsa total loss, actual cash value means themarket value of property in a used market.

(c.) Otherwise, actual cash value means themarket value of new, identical or nearlyidentical property less reasonable deductionfor wear and tear, deterioration andobsolescence.

(vi) N. APPRAISAL 2. Is deleted.

(vii)The following is added to O. LOSS PAYMENT1.:

However, option c. will not apply if you are requiredby state law to repair or replace the property; andoption d. will not apply if the property is not beingrepaired or replaced in accordance with state law.

Subsection (7) of Wash. Rev. Code Ann. Section64.34.352 (1990) provides that any portion of thecondominium for which insurance is required shallbe repaired or replaced unless:

a. The condominium is terminated;


b. Repair or replacement would be illegal underany state or local health or safety statute orordinance; or

c. 80% of the unit-owners vote not to rebuild.This includes every owner of a unit orassigned limited common element that willnot be rebuilt.

(viii)The following is added:

V. VEHICLES

The word vehicles as used in this PropertyCoverage Part means running on land ortracks, but not aircraft.

D. XI. GENERAL LIABILITY EXCLUSIONS SECTIONis amended as follows:

(i) The first sentence of Exclusion H. ASBESTOSis deleted and replaced by:

“Bodily injury,” “property damage,” “personal injury”or “advertising injury” of any nature whatsoever,based on, caused by, attributable to, related to,or in any manner and at any time arising out ofthe exposure of:

(ii) Exclusion O.“EMPLOYERS LIABILITY” appliesonly to “bodily injury” to any “employee” ofthe insured whose employment is not subjectto the Industrial Insurance Act of Washington(Washington Revised Code Title 51).

With respect to “bodily injury” to “employees” ofthe insured whose employment is subject to theIndustrial Insurance Act of Washington, ExclusionO. “EMPLOYERS LIABILITY” is replaced withthe following:

O. “EMPLOYERS LIABILITY”

1. “Bodily injury” to an “employee” of theinsured arising out of and in the courseof:

a. Employment by the insured; or

b. Performing duties related to theconduct of the insured’s business; or

2. Any obligation to share damages with orrepay someone else who must paydamages because of the injury.

This exclusion does not apply to liabilityassumed by the insured under an “insuredcontract”.

(iii) Exclusion X. INJURY RELATING TO“NONOWNED AUTO” AND “HIRED AUTO”applies only to “bodily injury” to any“employee” of the insured whose employmentis not subject to the Industrial Insurance Actof Washington (Washington Revised CodeTitle 51).

With respect to “bodily injury” to employees of theinsured whose employment is subject to theIndustrial Insurance Act of Washington, ExclusionX. INJURY RELATING TO “NONOWNED AUTO”AND “HIRED AUTO” is deleted and replacedwith the following:

X. INJURY RELATING TO “NONOWNEDAUTO” AND “HIRED AUTO”

1. “Bodily injury” to an employee of theinsured arising out of and in the courseof:


b. Performing duties related to theconduct of the insured’s business; or

2. Any obligation to share damages with orrepay someone else who must paydamages because of the injury.

This exclusion does not apply to liabilityassumed by the insured under an “insuredcontract”.

E. XII. GENERAL LIABILITY - WHO IS AN INSUREDSECTION is amended as follows:

Provision A.6.a. applies only to “employees” of theinsured whose employment is not subject to theIndustrial Insurance Act of Washington (WashingtonRevised Code Title 51).

With respect to “employees” of the insured whoseemployment is subject to the Industrial Insurance Actof Washington, provision A.6.a. is replaced by thefollowing:

a. “Bodily injury” or “personal injury” to you or to aco-“employee” while in the course of his or heremployment for which there is any obligation toshare damages with or repay someone else whomust pay damages because of the “bodily injury”or “personal injury”; or

F. The first sentence of XVI. EXCESS LIABILITYEXCLUSIONS SECTION, G. ASBESTOS is deletedand replaced by the following:


“Bodily injury,” “property damage,” “personal injury”or “advertising injury” of any nature whatsoever, basedon, caused by, attributable to, related to, or in anymanner and at any time arising out of the exposureof:

G. XX. LIABILITY CONDITIONS SECTION, A.PREMIUM AUDIT is deleted and replaced by thefollowing:

A. PREMIUM AUDIT

1. We will compute all premiums for this LiabilityCoverage Part in accordance with our rulesand rates.

2. The first Named Insured must keep recordsof the information we need for premiumcomputation and send us copies at such timesas we may request.

H. XXVII. COMMON POLICY CONDITIONS SECTIONis amended as follows:

(i) A. CANCELLATION 1, 2. and 3. are deleted andreplaced by the following:

1. The first Named Insured shown in the“Declarations” may cancel this policy bynotifying us or the insurance producer in oneof the following ways:

a. Written notice by mail, fax or email;

b. Surrender of the policy or binder, or;

c. Verbal notice

However if the first Named Insured providesverbal notice of cancellation to us or theinsurance producer, we require the first NamedInsured to provide written confirmation ofcancellation. We will not impose a waitingperiod for cancellation by requiring writtenconfirmation from the first Named Insured.

Upon receipt of notice of cancellation we willcancel this policy or any binder issued asevidence of coverage effective on the later ofthe following:

a. The date on which notice is received orthe policy or binder is surrendered; or

b. The date of cancellation requested by thefirst Named Insured.

2. We may cancel this policy by mailing ordelivering to the first Named Insured and the

first Named Insured’s agent or broker, writtennotice of cancellation, including the actualreason for the cancellation to the last mailingaddress known to us, at least:

a. 10 days before the effective date ofcancellation if we cancel for nonpaymentof premium; or

b. 45 days before the effective date ofcancellation if we cancel for any otherreason,

except as provided in paragraph 3. below.

3. We may cancel this policy, by mailing ordelivering to the first Named Insured and thefirst Named Insured’s agent or broker, writtennotice of cancellation at least 5 days beforethe effective date of cancellation for anystructure where 2 or more of the followingconditions exist:

a. Without reasonable explanation, thestructure is unoccupied for more than 60consecutive days, or at least 65% of therental units are unoccupied for more than120 consecutive days unless the structureis maintained for seasonal occupancy oris under construction or repair;

b. Without reasonable explanation, progresstoward completion of permanent repairsto the structure has not occurred within60 days after receipt of funds followingsatisfactory adjustment or adjudication ofloss resulting from a fire;

c. Because of its physical condition, thestructure is in danger of collapse;

d. Because of its physical condition, avacation or demolition order has beenissued for the structure, or it has beendeclared unsafe in accordance withapplicable law;

e. Fixed and salvageable items have beenremoved from the structure, indicatingintent to vacate the structure;

f. Without reasonable explanation, heat,water, sewer, and electricity are notfurnished for the structure for 60consecutive days; or


g. The structure is not maintained insubstantial compliance with fire, safetyand building codes.

(ii) The following is added to A. CANCELLATION5.:

The cancellation will be effective even if we havenot made or offered a refund.

(iii) The following is added to A. CANCELLATION:

7. We will also mail or deliver to any mortgageholder, pledgee or other person shown in thispolicy to have an interest in any loss whichmay occur under this policy, at their lastmailing address known to us, written noticeof cancellation, prior to the effective date ofcancellation. If cancellation is for reasonsother than those contained in XXVII.A.CANCELLATION 3., this notice will be thesame as that mailed or delivered to the firstNamed Insured. If cancellation is for areason contained in XXVII.A.CANCELLATION 3., we will mail or deliverthis notice at least 20 days prior to theeffective date of cancellation.

(iv) B. NONRENEWAL 2. is deleted and replacedby the following:

2. We may elect not to renew this policy bymailing or delivering written notice ofnonrenewal, stating the reasons fornonrenewal, to the first Named Insured andthe first Named Insured’s agent or broker, attheir last mailing address known to us. Wewill also mail to any mortgage holder, pledgeeor other person shown in this policy to havean interest in any loss which may occur underthis policy, at their last mailing address knownto us, written notice of nonrenewal. We willmail or deliver these notices at least 45 daysbefore the:

a. Expiration of the policy; or

b. Anniversary date of this policy if this policyhas been written for a term of more thanone year.

Otherwise, we will renew this policy unless:

(1) The first Named Insured fails to pay therenewal premium after we haveexpressed our willingness to renew,including a statement of the renewal

premium, to the first Named Insured andthe first Named Insured’s agent or brokerat least 20 days before the expirationdate; or

(2) Other coverage acceptable to the insuredhas been procured prior to the expirationdate of this policy.

(v) B. NONRENEWAL 3. is deleted.

(vi) E. INSPECTIONS AND SURVEYS is deletedand replaced by the following:

E. INSPECTIONS AND SURVEYS

1. We have the right to:

a. Make inspections and surveys at anytime;

b. Give you reports on the conditions wefind; and

c. Recommend changes,

2. We are not obligated to make anyinspections, surveys, reports orrecommendations and any such actionswe do undertake relate only to insurabilityand the premiums to be charged. We donot make safety inspections. We do notundertake to perform the duty of anyperson or organization to provide for thehealth or safety of workers or the public.And we do not warrant that conditions:

a. Are safe or healthful; or

b. Comply with laws, regulations, codesor standards.

3. Paragraphs 1. and 2. of this conditionapply not only to us, but also to any rating,advisory, rate service or similarorganization which make insuranceinspections, surveys, reports orrecommendations.

4. Paragraph 2. of this condition does notapply to inspections, surveys, reports orrecommendations that may be made onour behalf by Special Inspectorscommissioned by the state of Washingtonrelative to certification, under state ormunicipal statutes, ordinances orregulations, of boilers, pressure vesselsor elevators.


I. XXVIII. DEFINITIONS SECTION is amended asfollows:

(i) 88. Volcanic action is deleted and replaced bythe following:

88. “Volcanic action:” (PROPERTY) means:

a. Direct loss or damage resulting from theeruption of a volcano when the loss ordamage is caused by:

1. Volcanic blast or airborne shock waves;or

2. Ash, dust or particulate matter.

b. Direct loss includes the cost to:

1. Remove the ash, dust or particulatematter from the interior and exteriorsurfaces of the covered building; and

2. Clean equipment and stock. If stockcannot be returned to its state before thevolcanic eruption, the measure of loss willbe the reduction in actual cash value.

Payment for removal applies only to the initialdeposit of ash, dust or particulate matterfollowing a volcanic eruption. Subsequentdeposits arising from the movement of volcanicdust or ash by wind or other means are notcovered.

c. “Volcanic action” does not include loss causedby, resulting from, contributed to oraggravated by:

1. Fire;

2. Explosion;

3. Flood, surface water, waves(includingtidal wave and tsunami), tides, tidal water,overflow of any body of water, or theirspray, all whether or not driven bywind(including storm surge); or

4. Earth movement, including but not limitedto earthquake, volcanic eruption,landslide, mine subsidence, lava flow,mud flow, earth sinking, earth rising orshifting.

(ii) The following is added:

96. As used in this endorsement,“domesticabuse”means:

1. Physical harm, bodily injury, assault, orthe infliction of fear of imminent physicalharm, bodily injury or assault betweenfamily or household members;

2. Sexual assault of one family or householdmember by another;

3. stalking, as defined in RCW 9A.46.110 ofone family or household member byanother family or household member; or

4. Intentionally, knowingly or recklesslycausing damage to property so as tointimidate or attempt to control thebehavior of another family or householdmember.



A. The following is added to III.B. EXCLUSIONS, 1.:

g. "FUNGUS," WET ROT AND DRY ROTPresence, growth, proliferation, spread, or any activity of "fungus" or wet or dry rot.

However, if "fungus" or wet or dry rot results in a "Specified Causes of Loss," we will pay for the loss ordamage caused by that "specified cause of loss."

However, this exclusion does not apply when "fungus" or wet or dry rot results from fire or lighting.

Except as provided under IV.C. "FUNGUS," WET ROT AND DRY ROT COVERAGE.

B. III.B. EXCLUSIONS, 2. is amended as follows:

(i) Exclusion b.(5) is deleted.

(ii) The following exclusion is added:

g. NEGLECT OF AN INSUREDNeglect of an insured to use all reasonable means to save and preserve property from furtherdamage at and after the time of loss.

C. The following is added to IV. PROPERTY ADDITIONAL COVERED CAUSES OF LOSS SECTION:

C. "FUNGUS," WET ROT AND DRY ROT COVERAGE

1. We will pay for loss or damage by "fungus" or wet or dry rot. As used in this endorsement, theterm loss or damage means:

a. Direct physical loss or damage to "covered property" caused by "fungus" or wet or dryrot, including the cost of removal of the "fungus" or wet or dry rot;

b. The cost to tear out and replace any part of the building or other property as needed togain access to the "fungus" or wet or dry rot; and

c. The cost of testing performed after removal, repair, replacement or restoration of thedamaged property is completed, provided there is a reason to believe that "fungus" orwet or dry rot are present.

The coverage described above is limited to $15,000. Regardless of the number of claims, thislimit is the most we will pay for the total of all loss or damage arising out of all occurrences ofCOVERED CAUSE OF LOSS, other than fire or lightning, which take place in a 12 monthperiod (starting with the beginning of the present annual policy period). With respect to aparticular occurrence of loss which results in "fungus" or wet or dry rot, we will not pay morethan a total of $15,000 even if the "fungus" or wet or dry rot continues to be present or active,or recurs in a later policy period.



"Fungus," Wet Rot and Dry Rot Coverage


2. The following provisions a. or b. applies only if II.A. MAINTENANCE FEES, B. COMMUNITYINCOME or C. EXTRA EXPENSE coverage applies to the "premises" and only if the suspensionof operations satisfies all terms and conditions of the applicable II.A. MAINTENANCE FEES,B. COMMUNITY INCOME or C. EXTRA EXPENSE coverage.

a. If the loss which resulted in "fungus" or wet or dry rot does not in itself necessitate asuspension of operations, but such suspension is necessary due to loss or damage toproperty caused by "fungus" or wet or dry rot, then our payment under II.A.MAINTENANCE FEES, B. COMMUNITY INCOME or C. EXTRA EXPENSE is limitedto the amount of loss and expense sustained in a period of not more than 30 days. Thedays do not need to be consecutive.

b. If a covered suspension of operations was caused by loss or damage other than "fungus"or wet or dry rot but remediation of "fungus" or wet or dry rot prolongs the "period ofrestoration," we will pay for loss and expense sustained during the delay, regardless ofwhen such a delay occurs during the "period of restoration," but such coverage is limitedto 30 days. The days do not need to be consecutive.

3. The coverage described in provisions 1. and 2. above only applies when the "fungus" or wet ordry rot is the result of one or more COVERED CAUSE OF LOSS other than fire or lightningthat occurs during the "policy period" and only if all reasonable means were used to save andpreserve the property from further reasonably foreseeable damage at the time of and after thatoccurrence.

We will pay only for such loss or damage which, with respect to the occurrence described inprovision 1.a. above which:

a. occurs within 48 consecutive hours of the occurrence; and

b. is reported to us within seven consecutive days of the occurrence.

4. The coverage provided under this endorsement does not increase the applicable limit of insuranceon any "covered property." If a particular occurrence results in loss or damage by "fungus" orwet or dry rot, and other loss or damage, we will not pay more for the total of all loss or damage,than the applicable limit of insurance on the affected "covered property."

If there is covered loss or damage to "covered property," not caused by "fungus" or wet or dryrot, loss payment will not be limited by the terms of this endorsement except to the extent that"fungus" or wet or dry rot causes an increase in the loss. Any such increase in loss will besubject to the terms of this endorsement.

D. The following definition is added to XXVIII. DEFINITIONS:

"Fungus" (PROPERTY) means any type or form of fungus or bacteria, including mold or mildew and anymycotoxins, spores, scents or byproducts produced or released by fungi or bacteria.



A. Exclusions XI. I. ROT, MOLD AND MILDEW OR OTHER FUNGI, XVI.I. ROT, MOLD AND MILDEW OROTHER FUNGI and II.M. ROT, MOLD, MILDEW OR OTHER FUNGI of the Environmental Coverage Partare deleted and replaced by the following:

"FUNGI"

A. "Bodily injury," "property damage," "personal injury" or "advertising injury" which would not have occurred,in whole or in part, but for the actual, alleged or threatened inhalation of, ingestion of, contact with,exposure to, existence of, or presence of, any "fungi" on or within a building or structure, including itscontents .

B. Any loss, cost or expenses arising out of the abating, testing for, monitoring, cleaning up, removing,containing, treating, detoxifying, neutralizing, remediating or disposing of, or in any responding to, orassessing the effects of, "fungi", by any insured or by any other person or entity.

This exclusion does not apply to any "fungi" that are, are on, or are contained in, a good or productintended for consumption.

B. The following definition is added to XXVIII. DEFINITIONS SECTION:

"Fungi" (LIABILITY) means any type or form of fungus or bacteria, including mold or mildew and any mycotoxins,spores, scents or byproducts produced or released by fungi or bacteria.

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"Fungi" Exclusion

This endorsement modifies insurance provided by the Liability Coverage Part of the following:

CONDOMINIUM ASSOCIATION INSURANCE POLICYCOOPERATIVE APARTMENT INSURANCE POLICYHOMEOWNERS ASSOCIATION INSURANCE POLICYOFFICE CONDOMINIUM ASSOCIATION INSURANCE POLICY

A. The following is applicable to the PROPERTY COVERAGE PART:

1. CAP ON CERTIFIED TERRORISM LOSSESWith respect to any one or more “certified acts of terrorism” under the federal Terrorism Risk InsuranceAct we will not pay any amounts for which we are not responsible under the terms of that Act (includingsubsequent action of Congress pursuant to the Act) due to the application of any clause which resultsin a cap on our liability for payments for terrorism losses.

2. APPLICATION OF OTHER EXCLUSIONSThe terms and limitations of any terrorism exclusion, or the inapplicability or omission of a terrorismexclusion, do not serve to create coverage for any loss which would otherwise be excluded under thisProperty Coverage Part, such as losses excluded by the III.B.1.d. NUCLEAR HAZARD exclusion,III.B.1.e. “WAR” AND MILITARY ACTION exclusion or III.B.2.e. POLLUTION exclusion.

B. The following is applicable to the LIABILITY COVERAGE PART, DIRECTORS AND OFFICERS LIABILITYCOVERAGE PART, EMPLOYEE BENEFITS LIABILITY COVERAGE PART and ENVIRONMENTALIMPAIRMENT LIABILITY COVERAGE PART:

1. CAP ON CERTIFIED TERRORISM LOSSESWith respect to any one or more “certified acts of terrorism” under the federal Terrorism Risk Insurance Act,we will not pay any amounts for which we are not responsible under the terms of that Act (including subsequentaction of Congress pursuant to the Act) due to the application of any clause which results in a cap on ourliability for payments for terrorism losses.

2. APPLICATION OF OTHER EXCLUSIONSThe terms and limitations of any terrorism exclusion, or the inapplicability or omission of a terrorism exclusion,do not serve to create coverage for any loss which would otherwise be excluded under these CoverageParts, such as losses excluded by the “WAR” exclusion, HOSTILE ACTS exclusion, NUCLEAR ENERGYexclusion, NUCLEAR HAZARD exclusion or the POLLUTION exclusion.

C. The following definition is added to XXVIII. DEFINITIONS SECTION:

“Certified act of terrorism” (PROPERTY, LIABILITY, DIRECTORS AND OFFICERS LIABILITY, EMPLOYEEBENEFITS LIABILITY, and ENVIRONMENTAL IMPAIRMENT LIABILITY) means an act that is certified by theSecretary of the Treasury in accordance with the provisions of the federal Terrorism Risk Insurance Act, to bean act of terrorism pursuant to such Act. The criteria contained in that Act for a “certified act of terrorism” includethe following:

1. The act resulted in insured losses in excess of $5 million in the aggregate, attributable to all types of insurancesubject to the Terrorism Risk Insurance Act;and

2. The act is a violent act or an act that is dangerous to human life, property or infrastructure and is committedby an individual or individuals, as part of an effort to coerce the civilian population of the United States orto influence the policy or affect the conduct of the United States Government by coercion.



Cap on Losses from “Certified Acts of Terrorism”

This endorsement modifies insurance provided by the following policies:

D. If aggregate insured losses attributable to terrorist acts certified under the Terrorism Risk Insurance Act exceed$100 billion in a calendar year and we have met our insurer deductible under the Terrorism Risk Insurance Act,we shall not be liable for the payment of any portion of the amount of such losses that exceeds $100 billion,and in such case insured losses up to that amount are subject to pro rata allocation in accordance with proceduresestablished by the Secretary of the Treasury.



This policy includes coverage for Certified Acts of Terrorism. Please refer to the applicable chargebelow.

SCHEDULE

PREMIUM$226Terrorism (Certified Acts)

Federal share of terrorism losses 84% Year 2016

Federal share of terrorism losses 83% Year 2017

A. DISCLOSURE OF PREMIUMIn accordance with the federal Terrorism Risk Insurance Act, we are required to provide you with a noticedisclosing the portion of your premium, if any, attributable to coverage for terrorist acts certified under thatAct. The portion of your premium attributable to such coverage is shown in the Schedule of this endorsementor in the policy Declarations.

B. DISCLOSURE OF FEDERAL PARTICIPATION IN PAYMENT OF TERRORISM LOSSESThe United States Government, Department of the Treasury, will pay a share of terrorism losses insuredunder the federal program. The federal share equals a percentage, as shown in the Schedule above, ofthat portion of the amount of such insured losses that exceeds the applicable insurer retention. However,if aggregate insured losses attributable to terrorist acts certified under the Terrorism Risk Insurance Actexceed $100 billion in a calendar year the Treasury shall not make any payment for any portion of theamount of such losses that exceeds $100 billion.

C. CAP ON INSURER PARTICIPATION IN PAYMENT OF TERRORISM LOSSESIf aggregate insured losses attributable to terrorist acts certified under the Terrorism Risk Insurance Actexceed $100 billion in a calendar year and we have met our insurer deductible under the Terrorism RiskInsurance Act, we shall not be liable for the payment of any portion of the amount of such losses that exceeds$100 billion, and in such case insured losses up to that amount are subject to pro rata allocation in accordancewith procedures established by the Secretary of the Treasury.

D. ADDITIONAL OR RETURN PREMIUMThe premium for “certified acts of terrorism” coverage is calculated based in part on the federal participationin payment of terrorism losses as set forth in the Terrorism Risk Insurance Act. The federal programestablished by the Act is scheduled to terminate December 31, 2020, unless extended by the federalgovernment. If the federal program terminates or if the level or terms of federal participation change, theestimated premium shown in the Schedule may not be appropriate.


THIS ENDORSEMENT IS ATTACHED TO AND MADE PART OF YOUR POLICY IN RESPONSE TO THE DISCLOSUREREQUIREMENTS OF THE TERRORISM RISK INSURANCE ACT. THIS ENDORSEMENT DOES NOT GRANT ANYCOVERAGE OR CHANGE THE TERMS AND CONDITIONS OF ANY COVERAGE UNDER THE POLICY.

Disclosure Pursuant to Terrorism Risk Insurance Act


If this policy contains a Conditional Exclusion, continuation of coverage for “certified acts of terrorism”, ortermination of such coverage, will be determined upon disposition of the federal program, subject to theterms and conditions of the Conditional Exclusion. If this policy does not contain a Conditional Exclusion,coverage for “certified acts of terrorism” will continue. In either case, when disposition of the federal programis determined, we will recalculate the premium shown in the Schedule and will charge additional premiumor refund excess premium, if indicated.

If we notify you of an additional premium charge, the additional premium will be due as specified in suchnotice.


I. We will not pay for any loss, damage, cost or expense,whether real or alleged, that is caused, results from,is exacerbated by or otherwise impacted by, eitherdirectly or indirectly, any of the following:

1) Nuclear Hazard – including, but not limited to,nuclear reaction, nuclear detonation, nuclearradiation, radioactive contamination and all agents,materials, products or substances, whetherengineered or naturally occurring, involved thereinor released thereby;

2) Biological Hazard – including, but not limited to,any biological and/or poisonous or pathogenicagent, material, product or substance, whetherengineered or naturally occurring, that induces oris capable of inducing physical distress, illness,or disease;

3) Chemical Hazard – including, but not limited to,any chemical agent, material, product orsubstance;

4) Radioactive Hazard – including, but not limitedto, any electromagnetic, optical, or ionizingradiation or energy, including all generators andemitters thereof, whether engineered or naturallyoccurring.

II. The provisions of subparagraphs I. 2) and I. 3) will notapply where the agent, material, product or substanceat issue is utilized in the course of business by aninsured.

III. The following exception to the exclusion in paragraphI. applies:

If a hazard excluded under paragraph I. results in fire,we will pay for the loss, damage, cost or expensecaused by that fire, subject to all applicable policyprovisions including the Limit of Insurance on theaffected property. Such coverage for fire applies onlyto direct loss or damage by fire to Covered Property.This coverage does not apply to insurance provided

under Business Income, Rental Value or ExtraExpense coverage forms or endorsements that applyto those coverage forms.

All other terms and conditions of this policy remainunchanged.

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NUCLEAR, BIOLOGICAL, CHEMICAL AND RADIOLOGICAL HAZARDSEXCLUSION




(i) The following is added to III. PROPERTY CAUSES OF LOSS, EXCLUSIONS AND LIMITATIONS SECTION,B. EXCLUSIONS:

A. We will not pay for loss or damage caused directly or indirectly by the following:

1. The failure, malfunction or inadequacy of:

a. Any of the following, whether belonging to any insured or to others:

(1) Computer hardware, including microprocessors;(2) Computer application software;(3) Computer operating systems and related software;(4) Computer networks;(5) Microprocessors (computer chips) not part of any computer system; or(6) Any other computerized or electronic equipment or components; or

b. Any other products, and any services, data or functions that directly or indirectly use orrely upon, in any manner, any of the items listed in Paragraph A.1.a. above;

due to the inability to correctly recognize, process, distinguish, interpret or accept one or moredates or times.

2. Any advice, consultation, design, evaluation, inspection, installation, maintenance, repair,replacement or supervision provided or done by you or for you to determine, rectify or test for,any potential or actual problems described in Paragraph A.1. above.

Loss or damage is excluded regardless of any other cause or event that contributes concurrently or inany sequence to the loss or damage.

B. If an excluded Cause of Loss as described in Paragraph A. above results in a "Specified Cause of Loss"we will pay only for the loss or damage caused by such "Specified Cause of Loss".

C. We will not pay for repair, replacement or modification of any items in Paragraphs A.1.a. and A.1.b.above to correct any deficiencies or change any features.

(ii) The following is added to XI. GENERAL LIABILITY EXCLUSIONS SECTION and XVI. EXCESS LIABILITYEXCLUSIONS SECTION:

This insurance does not apply to "bodily injury", "property damage" or "personal injury" and "advertising injury"arising directly or indirectly out of:



Exclusion of Certain Computer Related Losses


1. Any actual or alleged failure, malfunction or inadequacy of:



b. Any other products, and any services, data or functions that directly or indirectly use or relyupon, in any manner, any of the items listed in Paragraph 1.a. above;

due to the inability to correctly recognize, process, distinguish, interpret or accept one or more dates ortimes.

2. Any advice, consultation, design, evaluation, inspection, installation, maintenance, repair, replacementor supervision provided or done by you or for you to determine, rectify or test for, any potential or actualproblems described in Paragraph 1. above.

(iii) The following is added to XXII. DIRECTORS AND OFFICERS LIABILITY EXCLUSIONS SECTION:

This insurance does not apply to any claim or "suit" arising directly or indirectly out of:

1. Any actual or alleged failure, malfunction or inadequacy of:



b. Any other products, and any services, data or functions that directly or indirectly use or relyupon, in any manner, any of the items listed in Paragraph 1.a. above;

due to the inability to correctly recognize, process, distinguish, interpret or accept one or more dates ortimes.

2. Any advice, consultation, design, evaluation, inspection, installation, maintenance, repair, replacementor supervision provided or done by you or for you to determine, rectify or test for, any potential or actualproblems described in Paragraph 1. above.


I. ENVIRONMENTAL IMPAIRMENT LIABILITYCOVERAGE SECTION

A. ENVIRONMENTAL IMPAIRMENT LIABILITYWe shall pay on behalf of the insured for "loss"such insured becomes legally obligated to pay asthe result of "claims" first made against the insuredduring the "policy period". Insurance is providedby this Environmental Impairment LiabilityCoverage Part for any "claim" made or brought inthe "coverage territory" and:

1. Arising out of "pollution conditions" on, at,under or emanating from the locations(s)stated in the "Declarations"; and,

2. Reported to us in accordance with VI.C.ENVIRONMENTAL IMPAIRMENT LIABILITYCONDITIONS SECTION; and,

3. Reported to us during the "policy period" orextended reporting period, if exercised, inaccordance with V. ENVIRONMENTALLIABILITY EXTENDED REPORTING PERIODSECTION.

B. DEFENSE AND PAYMENT1. Even if the allegations are groundless, false

or fraudulent, we will have the right and dutyto defend against any "claim" or "suit".

2. "Defense costs" are subject to the following:

a. We may investigate any "claim" or "suit"at our discretion.

b. Our right and duty to defend ends whenwe have used up the limit of insurance inthe payment of "loss".

c. Subject to I.B.3., we may, at our option,give you our consent to defend any"claim" or "suit".

d. Subject to I.B.3., no "defense costs" willbe incurred or settlements made withoutour consent, which will not beunreasonably withheld. We will not beliable for any settlements or "defensecosts" to which we have not consented inwriting.

3. Subject to the following, if the limits ofinsurance stated in the "Declarations" hasbeen or soon will be exhausted, we willtransfer to you control of any existing defense:

a. We will notify you in writing as soon asreasonably possible. We will advise youthat our duty to defend either hasterminated or is about to terminate subjectto the payment of the limit ofinsurance. We will advise you that we willno longer handle the defense of any"claim" reported to us after the date weprovide this notice.

b. We will take immediate and appropriatesteps to transfer control to you of anyexisting defense at the time of or prior toexhaustion of the limit of insurance. Youwill agree to reimburse us for anyreasonable costs we incur in connectionwith the transfer of the defense.

c. We will take appropriate steps necessaryto defend the "claim" during the transferof the defense and to attempt to avoid anyunfavorable legal action provided that theinsured cooperates with the transfer.

d. The exhaustion of the limit of insuranceby the payment of "loss" will not be

CAU225487-2-0Page 1 of 8CAU 2200 07/01

Environmental Impairment Liability Coverage PartClaims Made

Throughout this policy, the words, "you" and "your" refer to the named insured shown in the "Declarations". "we", "us"and "our" refer to the company providing this insurance. Other words and phrases that appear in quotation markshave special meanings. Refer to XXVIII. DEFINITIONS SECTION of the policy.

The word "insured" means any person or organization qualifying as such under III. ENVIRONMENTAL IMPAIRMENTLIABILITY WHO IS AN INSURED SECTION.

This Environmental Impairment Liability Coverage Part along with XXVII. COMMON POLICY CONDITIONSSECTION and XXVIII. DEFINITIONS SECTION of the policy contain all our obligations regarding this coverage. Wehave no other obligation unless the policy, that this Environmental Impairment Liability Coverage Part is partof, is amended accordingly.

affected by our failure to comply with anyof the provisions of this section.

II. ENVIRONMENTAL IMPAIRMENT LIABILITYEXCLUSIONS SECTION

This insurance does not apply to "loss" arisingout of any of the following:

A. KNOWN CONDITIONS"Pollution conditions" existing prior to the inceptionof this policy that are known to any insured andthat were not disclosed to us in writing in theapplication or related materials prior to theinception of this policy.

B. MULTIPLE DAMAGES/FINES/PENALTIESCivil, administrative or criminal fines or penalties,assessments, punitive, exemplary or multiplieddamages. However, this exclusion does not applyto punitive, exemplary or multiplied damageswhere insurance coverage is allowable by law.

C. "EMPLOYERS LIABILITY" "Bodily injury" to:1. An "employee" of the insured arising out of

and in the course of:


b. Performing duties related to the conductof the insured's business; or

2. The spouse, child, parent, brother or sister ofthat "employee" as a consequence ofsubparagraph 1. above.

This exclusion applies:1. Whether the insured may be liable as an

employer or in any other capacity; and,

2. To any obligation to share damages withor repay someone else who must paydamages because of the injury.

D. WORKERS' COMPENSATION AND SIMILARLAWSAny obligation of the insured under a workerscompensation, disability benefits or unemploymentcompensation law or any similar law.

E. CONTRACTUAL LIABILITYLiability of others assumed by any insured underany contract or agreement unless the liability wouldexist in the absence of a contract oragreement. This exclusion does not apply to

"insured contract(s)", if any, stated in the "InsuredContracts" Schedule.

F. INSURED'S PROPERTY/BAILEE LIABILITY"Property damage" to property owned, leased oroperated by or in the care, custody or control ofany insured, even if such "property damage" isincurred to avoid or mitigate "loss" which may becovered under this policy.

G. VEHICLESThe ownership, maintenance, use, operation,loading or unloading of any automobile, aircraft,watercraft, rolling stock or all transportation,including any cargo carried thereby, beyond thelegal boundaries of locations shown in the"Declarations".

H. DIVESTED PROPERTY"Pollution conditions" on, at, under or emanatingfrom the locations shown in the "Declarations"where the actual discharge, dispersal, release,seepage, migration or escape of "pollutionconditions" begins subsequent to the time suchlocations are sold, given away or abandoned bythe first named insured or condemned.

I. NUCLEAR HAZARD

1. Under any liability coverage, to "bodily injury","property damage" or "remediation expense":

a. With respect to which an insured underthis policy is also an insured under anuclear energy liability policy issued byNuclear Energy Liability InsuranceAssociation, Mutual Atomic EnergyLiability Underwriters or NuclearInsurance Association of Canada, orwould be an insured under any suchpolicy but for its termination uponexhaustion of limits of liability; or,

b. Resulting from the "hazardous properties"of "nuclear material" and with respect towhich:

(1) Any person or organization is requiredto maintain financial protectionpursuant to the Atomic Energy Act of1954, or any amendment to that Act;or,

(2) The insured is or, had this policy notbeen issued, would be entitled to

CAU225487-2-0Page 2 of 8CAU 2200 07/01


indemnity from the United States ofAmerica or any of its agencies underany agreement entered into by theUnites States of America or any of itsagencies with any person ororganization.

2. Under any liability coverage, to "bodily injury"or "property damage" resulting from"hazardous properties" of "nuclear material",if:

a. The "nuclear material":

(1) Is at any "nuclear facility" owned byor operated by or on behalf of aninsured; or,

(2) Has been discharged or dispersedfrom such facility; or,

b. The "nuclear material" is contained in the"spent fuel" or "waste" at any timepossessed, handled, used, processed,stored, transported or disposed of by oron behalf of an insured; or,

c. The "bodily injury" or "property damage"arises out of the furnishing by an insuredof services, materials, parts or equipmentin connection with the planning,construction, maintenance, operation oruse of any "nuclear facility". However, ifsuch facility is located within the UnitedStates of America, its territories orpossessions or Canada, this exclusion,II. H.2.C. applies only to "propertydamage" to such "nuclear facility" and anyproperty on its premises.

J. PRODUCTS LIABILITYGoods or products manufactured, sold, handled,distributed, altered or repaired by the insured orby others trading under the insured's nameincluding, with regard to such goods or products,any container, any failure to warn and any relianceon a representation or warranty made at anytime. However, this exclusion applies only if the"pollution conditions" occur away from thelocations owned, operated or leased by the insuredand after physical possession of such has beenrelinquished to others.

K. INTENTIONAL ACTS

"Pollution conditions" that result from intentionalnoncompliance by any insured with any statute,regulation, ordinance, administrative complaint,notice, letter or instruction by any governmentalagency or representative.

L. HOSTILE ACTSAny consequence, whether direct or indirect, ofwar, invasion, act of foreign enemy, hostilities(whether or not war be declared), civil war,rebellion, revolution or insurrection.

M. ROT, MOLD, MILDEW OR OTHER FUNGIBased upon or arising out of the exposure to,required removal or abatement of rot, mold, ormildew or other fungi, regardless of whether suchrot, mold, or mildew or other fungi, ensues fromany cause or condition or, at, under or emanatingfrom or to the "premises," including but not limitedto any such cause or condition involving thepresence, discharge or infiltration of moisture,vapor, water or any other liquid, or any damagerelated to any of these.

N. UNDERGROUND STORAGE TANKSThe past or current existence of any undergroundstorage tank (USTs) and associated piping on, ator under any location listed in the LocationSchedule, but only if the existence of the UST isknown to any insured. This exclusion does notapply to any UST described in the UndergroundStorage Tanks and Associated Piping Schedule.

O. "UNITS" AND PRIVATE STORAGE AREAS"Pollution conditions" in, at or emanating from"units" or private storage areas regardless ofwhere the "bodily injury" or "property damage"occurs.

However, this exclusion does not apply to the"defense costs" provided under I.B.2. DEFENSEAND PAYMENT.

III. ENVIRONMENTAL IMPAIRMENT LIABILITY WHOIS AN INSURED SECTION

A. Each of the following is an insured:

1. You and any "subsidiary" named in the"Declarations";

2. Any person who has been, now is or shallbecome a duly elected or appointed directoror trustee, a duly elected or appointed officer,an "employee", or committee member,

CAU225487-2-0Page 3 of 8CAU 2200 07/01


whether or not salaried, and any of yourmembers acting at the direction of your boardof directors on your behalf in a voluntarycapacity;

3. The estate of any insured in 2. above who isdeceased; and

4. Legal representatives or assigns of anyinsured in 1. or 2. above who is insolvent,incompetent or bankrupt.

5. Any person, other than your "employee", orany organization while acting as your realestate manager.

B. None of the following is an insured:

Your builder, developer or sponsor or any personor organization affiliated with your builder,developer or sponsor in any capacity.

IV. ENVIRONMENTAL IMPAIRMENT LIABILITY LIMITSOF INSURANCE SECTION

A. The limits of insurance shown in the "Declarations"and the provisions of this section determine themost we will pay for damages regardless of thenumber of:

1. insureds and additional insureds;2. "claims" made or "suits" brought; or3. persons or organizations making "claims" or

bringing "suits".

B. LIMITS OF INSURANCE ARE SUBJECT TO THEFOLLOWING:

1. The each "policy year" limit is the most we willpay for all damages because of "loss" coveredby this Environmental Impairment LiabilityCoverage Part.

2. Subject to 1. above:

a. the each "loss" limit is the most we willpay for damages because of all "loss"arising out of the same or related"pollution conditions" at any one location;and,

b. all "loss" from one or more "claims" arisingout of the same or related "pollutionconditions" and reported to us, in writing,over more than one "policy period" shallbe considered a single "loss". Such "loss"

will be subject to the limits of insurancein effect at the time of the first reported"pollution conditions" will apply.

3. The insured's retained limit in effect at thetime the "claim" is first reported shall bededucted from the amount of each "loss". Youmust bear the retained limit and you are notpermitted to insure it without our writtenconsent.

4. We shall pay for "loss" only in excess of suchretained limit up to the applicable limits ofinsurance. We may pay any part or all of theinsured's retained limit to settle a "claim" or"suit" and you agree to promptly reimburseus for the part of the retained limit paid by us.

V. ENVIRONMENTAL IMPAIRMENT LIABILITYEXTENDED REPORTING PERIOD SECTION

We will provide an Automatic Extended ReportingPeriod as described in V.A. below and, if you purchaseit, an Optional Extended Reporting Period describedin V.B. in the event of any "termination of coverage".

A. AUTOMATIC EXTENDED REPORTING PERIOD

1. The Automatic Extended Reporting Periodstarts at the end of the "policy period" andlasts for 60 days. This extension is subjectto the other provisions of this policy andapplies to "claims" first made against theinsured during the 60 days immediatelyfollowing the end of the "policy period".

2. The Automatic Extended Reporting Period isprovided without additional charge.

3. The Automatic Extended Reporting Periodapplies only if no subsequent insurance youpurchase applies to the claim, or would applybut for the exhaustion of its limit of insurance.

4. The Automatic Extended Reporting Periodmay not be canceled.

B. OPTIONAL EXTENDED REPORTING PERIOD

1. If you purchase the Optional ExtendedReporting Period, it will start immediately atthe end of the "policy period", whether thepolicy is cancelled or nonrenewed by eitheryou or us. The Automatic Extended ReportingPeriod is merged into the Optional Extended

CAU225487-2-0Page 4 of 8CAU 2200 07/01


Reporting Period and is not in addition to thisperiod.

2. The cost for the Optional Extended ReportingPeriod is shown in the "Declarations." We willnotify you in writing, within 30 days of the endof the "policy period", of any provisions of theOptional Extended Reporting Period unlesswe cancel for nonpayment of premium orfraudulent activities of an insured. You maynot construe our quotation of different termsand conditions as a nonrenewal.

3. We will only provide the Optional ExtendedReporting Period upon your request, unlessthe policy is canceled for nonpayment ofpremium or fraudulent activities of an insured.

4. We will provide the Optional ExtendedReporting Period if the first Named Insuredmakes a written request to us for it which wereceive within 30 days after the end of the"policy period".

5. The Optional Extended Reporting Period willnot take effect unless the additional premiumis paid when due. If that premium is paidwhen due, the Optional Extended ReportingPeriod may not be canceled.

C. Extended Reporting Periods are subject to thefollowing conditions:

1. A "claim" first made during the ExtendedReporting Period will be deemed to have beenmade on the last day of the "policy period",provided that the "claim" is for "loss" from"pollution conditions" which took place beforethe end of the "policy period" but not beforeany applicable retroactive date.

Extended Reporting Periods do not extend the"policy period" or change the scope of coverageprovided.

2. Extended Reporting Periods do not reinstateor increase the limits of liability applicable toany "claim" to which this EnvironmentalImpairment Liability Coverage Part applies.

3. If this Environmental Impairment LiabilityCoverage Part is canceled and you elect topurchase the Optional Extended ReportingPeriod Endorsement:

a. Any return premium due you for thecancellation will be credited to thepremium due for the Optional ExtendedReporting Period Endorsement; and

b. Any additional premium due us for theperiod the policy was in force must be fullypaid before any payments can be appliedto the premium due for the OptionalExtended Reporting Period Endorsement.

VI. ENVIRONMENTAL IMPAIRMENT LIABILITYCONDITIONS SECTION

The Environmental Impairment Liability CoveragePart is subject to the following conditions.

A. LEGAL ACTION AGAINST US

1. No person or organization has a right underthis Environmental Impairment LiabilityCoverage Part:

a. To join us as a party or otherwise bringus into a "suit" against any insured; or

b. To sue us on this EnvironmentalImpairment Liability Coverage Part unlessall of its terms have been fully compliedwith.

2. A person or organization may sue us torecover on an "agreed settlement" or on afinal judgment against an insured obtainedafter an actual trial; but we will not be liablefor "loss" or "defense costs" that are notpayable under the terms of this EnvironmentalImpairment Liability Coverage Part or that arein excess of the applicable limit of insurance.

B. BANKRUPTCYBankruptcy or insolvency of the insured or of theinsured's estate will not relieve us of our obligationunder this Environmental Impairment LiabilityCoverage Part.

C. DUTIES IN THE EVENT OF "CLAIM" OR "SUIT"Failure to perform these duties will impair yourrights under this Environmental ImpairmentLiability Coverage Part.

1. You must see to it that we are notified as soonas practicable of any "loss", "claim" or"suit". To the extent possible, notice shouldinclude:

CAU225487-2-0Page 5 of 8CAU 2200 07/01


a. How, when and where the "loss", "claim"or "suit" came about;

b. The names and addresses of any personsinvolved; and

c. The nature of any resulting harm ordamages.

2. In the event of oral notification, you agree tofurnish a written report as soon as practicable.

3. If a "claim" is made against or received by aninsured, you must:

a. Immediately record the specifics of the"claim" and the date received;

b. Notify us as soon as practicable; andc. Provide written notice of the "claim".

4. You and any other involved insured must:

a. Immediately send us copies of anydemands, notices, summonses, or legalpapers received in connection with the"claim" or "suit";

b. Authorize us to obtain records and otherinformation;

c. Cooperate with us in the investigation,settlement, or defense of the "claim" or"suit"; and

d. Assist us, upon our request, in theenforcement of any right against anyperson or organization which may beliable to the insured because of "loss" towhich this insurance may apply.

5. No insureds will, except at their own cost,voluntarily make a payment, assume anyobligation, admit liability, or incur any expensewithout our consent. This provision does notapply to emergency responsecosts. Emergency response costs are anyreasonable costs that need to be incurredimmediately where any delay in responsewould cause significant harm to human healthor the environment.

D. REPRESENTATIONS AND SEVERABILITY1. In granting coverage under this Environmental

Impairment Liability Coverage Part to any oneof the insureds, we have relied upon thedeclarations and statements in the writtenapplication for coverage. Declarations andstatements are the basis of coverage and willbe considered as incorporated in and

constituting part of the EnvironmentalImpairment Liability Coverage Part.

2. The written application for coverage will beconstrued as a separate application forcoverage by each of the insureds.

3. Except with respect to the limits of insurance,and any rights or duties specifically assignedto the first Named Insured, this insuranceapplies:

a. As if each Named Insured were the onlyNamed Insured; and

b. Separately to each insured against whom"claim" is made or "suit" is brought.

E. NEWLY CREATED OR ACQUIRED"SUBSIDIARIES"1. If any "subsidiary", created or acquired by the

Named Insured after the inception of thisEnvironmental Impairment Liability CoveragePart, qualifies as a not-for-profit organizationunder the provision of the Internal RevenueCode and would have been included as aninsured under ENVIRONMENTALIMPAIRMENT LIABILITY WHO IS ANINSURED SECTION, such "subsidiary" willbe included subject to:

a. The giving of written notice of suchcreation or acquisition to us as soon aspractical, but in no event more than 120days following such creation oracquisition; and

b. The giving of any underwriting informationand the payment of any additionalpremium required by us.

2. If any "subsidiary", created or acquired by theNamed Insured after the inception of thispolicy, does not qualify as a not-for-profitorganization under the provisions of theInternal Revenue Code, such "subsidiary" willnot be included until the insured has:

a. Given written notice of such creation oracquisition together with any underwritinginformation which may be required; and

b. Received written approval from us andpaid any additional premium required.

F. CONSOLIDATION OR MERGERIn the event that the Named Insured acquires bymerger, or consolidates with, or is merged into or

CAU225487-2-0Page 6 of 8CAU 2200 07/01


acquired by any other organization after theinception of this policy, immediate written noticethereof will be given to us together with suchinformation as we may require. You will pay anyadditional premium required by us.

G. OTHER INSURANCESubject to IV. ENVIRONMENTAL IMPAIRMENTLIABILITY LIMITS OF INSURANCE SECTION,this insurance will be in excess of the retainedlimit stated in the "Declarations" and any othervalid and collectible insurance available to theinsured whether such other insurance is stated tobe primary, pro-rata, contributory, excess,contingent or otherwise, unless such otherinsurance is written only as specific excessinsurance over the limits of insurance.

VII. ENVIRONMENTAL IMPAIRMENT LIABILITYADDITIONAL CHANGESThe policy this Environmental Impairment LiabilityCoverage Part is attached to is changed as follows:

A. The following defined terms of XXVIII.DEFINITIONS SECTION of the policy areamended to also apply to the EnvironmentalImpairment Liability Coverage Part:

3. "Agreed settlement";10. "By-product material";19. "Declarations";23. "Employee";25. "Employers Liability";30. "Hazardous properties";37. "Leased worker";48. "Nuclear facility";49. "Nuclear material";50. "Nuclear reactor";58. "Policy period";59. "Policy year";60. "Pollutants";71. "Source material";72. "Special nuclear material";74. "Spent fuel";75. "Subsidiary(ies)";77. "Suit(s)";79. "Temporary worker";86. "Unit"; and91. "Waste".

B. The following defined terms are added to XXVIII.DEFINITIONS SECTION of the policy:

1. "Bodily Injury" (ENVIRONMENTALIMPAIRMENT LIABILITY) means bodily injury,sickness, disease, mental anguish or shocksustained by any person, including deathresulting therefrom, caused by "pollutionconditions".

2. "Claims" (ENVIRONMENTAL IMPAIRMENTLIABILITY):

a. means the assertion of a legal rightalleging liability or responsibility on thepart of the insured, arising out of "pollutionconditions", and shall include but not belimited to lawsuits or petitions filed againstthe insured; and,

b. includes "remediation expense" resultingfrom "pollution conditions" which are:

1. first discovered by any "insured"; and,2. reported to us,

during the "policy period" or applicableextended reporting period.

3. "Coverage territory" (ENVIRONMENTALIMPAIRMENT LIABILITY) means the UnitedStates and its territories and possessions.

4. "Defense Costs" (ENVIRONMENTALIMPAIRMENT LIABILITY) means legal costs,charges and expenses, including expert fees,incurred in the investigation, adjustment,settlement and defense of "claims".

5. "Insured Contract(s)" (ENVIRONMENTALIMPAIRMENT LIABILITY) means any contractdesignated in the Schedule of "InsuredContracts".

6. "Loss" (ENVIRONMENTAL IMPAIRMENTLIABILITY) means monetary judgment, awardor settlement of compensatory damagesarising from:

a. "bodily injury";b. "property damage";c. "remediation expense"; and,d. "defense costs".

7. "Pollution Conditions" (ENVIRONMENTALIMPAIRMENT LIABILITY) means thedischarge, dispersal, release, migration orescape of smoke, vapors, soot, fumes, acids,alkalis, electromagnetic fields, toxic chemicals,

CAU225487-2-0Page 7 of 8CAU 2200 07/01


liquids or gases, waste materials, includingmedical, infectious and pathological wastes,or other irritants, contaminants or "pollutants"into or upon land or structures, theatmosphere or any watercourse or body ofwater including groundwater.

8. "Property Damage" (ENVIRONMENTALIMPAIRMENT LIABILITY) means:

a. Physical injury to or destruction of tangibleproperty, including the personal propertyof third parties, including the loss of usethereof; or,

b. Loss of use of such property that has notbeen physically injured or destroyed; or,

c. Diminished third party property value.

9. "Remediation Expense" (ENVIRONMENTALIMPAIRMENT LIABILITY) means expensesincurred for or in connection with theinvestigation, monitoring, removal, disposal,treatment or neutralization of "pollutionconditions" to the extent required by anyFederal, State or Local Laws, Regulations orStatutes enacted to address "pollutionconditions".

However, "remediation expense" does notinclude any expense incurred for or inconnection with the investigation, monitoring,removal, disposal, treatment or neutralizationof either lead paint, asbestos or both at anypremises you own, operate or occupy.

10. "Termination of coverage"(ENVIRONMENTAL IMPAIRMENT LIABILITY)means cancellation or nonrenewal of theEnvironmental Impairment Liability CoveragePart by either party.

CAU225487-2-0Page 8 of 8CAU 2200 07/01


PRODUCER NAME & ADDRESSINSURED NAME AND MAILING ADDRESS

Community Association Underwriters Of America40 Lake Bellevue, Suite 100Bellevue, WA 98005

Hidden Wood West AssociationC/O Diamond Community Management7512 Stanich Lane, Suite 6Gig Harbor, WA 98335

C14

INVOICE DATELINE OF BUSINESSINSURANCE COMPANYPOLICY #ACCOUNT #

03/02/2016CPKGEQBECAU225487-224085

THE INSURED HAS THE OPTION OF PAYING THE POLICY PREMIUM OF $11,507.00 IN FULL BY 03/17/2016 OR CHOOSINGOUR INSTALLMENT PAYMENT PLAN. IF THE INSURED CHOOSES TO BE BILLED IN INSTALLMENTS, A FIRST PAYMENTOF $3,835.00 IS DUE BY 03/17/2016. THERE WILL BE AN INSTALLMENT CHARGE OF $7.00 PER INSTALLMENT.

INSTALLMENT SCHEDULE

TOTAL INSTALLMENTINSTALLMENT

CHARGE

INSTALLMENT AMOUNTDUE DATEINSTALLMENT

$3,835.00$0.00$3,835.0003/17/2016DOWN PAYMENT

$966.00$7.00$959.0004/27/20161.

$966.00$7.00$959.0005/27/20162.

$966.00$7.00$959.0006/27/20163.

$966.00$7.00$959.0007/27/20164.

$966.00$7.00$959.0008/27/20165.

$966.00$7.00$959.0009/27/20166.

$966.00$7.00$959.0010/27/20167.

$966.00$7.00$959.0011/27/20168.

$11,563.00$56.00$11,507.00

NOTE:THIS INVOICE DOES NOT REFLECT ANY PAYMENTS ALREADY MADE.THIS INSTALLMENT SCHEDULE IS SUBJECTTO CHANGE IN THE EVENT OF AN ENDORSEMENT OR REVISION TO THE POLICY.

Community Association UnderwritersPLEASE MAKE CHECKS PAYABLE TO:

P.O. Box 1100MAIL TO:Newtown, PA 18940

If you have any questions, please call (800) 228-1930.

COMMUNITY ASSOCIATION UNDERWRITERSRENEWAL INVOICE

TOTALSTATEEXPIRATIONEFFECTIVEQBEPREMIUMFEEPREMIUMDATEDATEPOLICY #ACCOUNT #

$11,507.00$0.00$11,507.0002/27/201702/27/2016CAU225487-224085

PLEASE MAKE CHECK PAYABLE TO:INSURED NAME AND MAILING ADDRESSCommunity Association Underwriters

Hidden Wood West AssociationC/O Diamond Community Management7512 Stanich Lane, Suite 6Gig Harbor, WA 98335

PLEASE MAIL CHECK TO:Community Association UnderwritersP.O. Box 1100Newtown, PA 18940

Ed. 04/13

Documents

Community Association Underwriters of America, Inc. · 2016. 6. 6. · 2. The association insurance policy carries a deductible. In the event of a claim, the association may seek