RACETRAC PETROLEUM, INC v ACE AMERICAN INSURANCE COMPANY Exhibits Policies

8/7/2019 RACETRAC PETROLEUM, INC v ACE AMERICAN INSURANCE COMPANY Exhibits Policies

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POLICY IDENTIFICATION

XSL G20593B 1 4

PRODUCERNAME INSUREDCODE: 273729 COMM:McGriff, Seibels & Williams

One Premier Plaza

5605 Glenridge Drive, Ste. 300

Atlanta, GA 30342

Racetrac Petroleum, Inc .

300 Technology Court

Smyrna, GA 30082

POLICY IS: Renewal Uf- XSL ( .UL1 ' I V F3 U y 4

NAMED INSURED IS: Corporation ot he r :

BUSI NESS OF I NSURED: Convenience Stores

POLICY PERIOD: FROM 06/01/2005 TO 06/01/2006

1 2 : 0 1 A.M . STANDARD TIME AT YOUR MAILI NG ADDRESS SHOWN ABOVE

AUDIT PERIOD :

PAYMENTFREQUENCY :

PAYMENT SCHEDULE: See Interim Ps4a titxm Payment Endorsement

TOTAL ADVANCE PREMIUM

= Total Advanc e PremiumEst imated callous x Rate Per 1,000

$ x _a ~-

Subject to a M i n i mum Premium of $ '

Ithe event you can oe s h a l l r e c ei v e a n d f ~ t a i r ~ n o t l e s s I

~o untersigned : ~# d By :C . ( D a t e )

1 as the Minimum Premium .

X S - B U88 b ( 02! 9 9 )

r .

ACE USAACE American Insuran ce Company

L~

1 Ch e s t n u t s t re e t

i adel pi a . PA 1 9 10 3

(a stock insurance company)

Excess Comm ercial General

L i a b i l i t y P o l i c y

PREMIUM COMPUTATION AND PAYMENT CONDITIONS

Annual

Quarterly

REDACTED

Case 1:10-cv-02162-WSD Document 1-1 Filed 07/13/10 Page 1 of 67


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X5L G2 05 93654

POLI CY I DENTI FI CATI ON

DECLARATIONS - E x c e s s G e n e r a l L i a b i f i k y P o l i c y - P a g e 2

ITS OF INSURA NCE

I n r e t u r n f or t h e p a y m e n t o f p remi um i ndica t e d o P a g e 1 o f t h e D e c l a r a t i o n s , w e a g r e e w i t h y o u t o p r o v i d e i n s u rance at t hel i m i t s s h o w n , s u b j e c t t o a l l o f t h e t e r m s a n d c o n l i o n s o f t h i s p o l i c y .

500,000

500,000

EACH OCCURRENCEPERSONAL AND ADVERTISING INJURY

FORMS ANDENDORSEMENTS (gage 1 of 2)

FORMS AND ENDORSEMENTS ATTACHED 1 'O THIS POLICY AT INCEP T I O N :

SCHEDULE OF COVERAGE PARTS

Excess Commercial General Liability Policy

SCHEDULE OF ENDORSEMENTS

Description

Schedu~e of Named InsuredsInterim Premium Payment EndorsementCance7.Qation By Us

Endt . No

1 .

2 .

3 .

Form No .

CC1E15LC57 Bi3

CC1E15

T h i s d e cl a r a t i o n a n d t h e c o v e r a g e f o r m ( s ) a n d e n d or s e m e n t s , i f a n y , l i s t e d a b o v e a n d a t t a c h e d , c o m p l e t e s t h e a b o v e

n u m b e r e d p o l i c y .

During the last three years no insurer has cancelled insu rance issued to t he named insured simila r to this insuranc e,

u n l e s s o t h e r w i se s t a t e d i n t h i s p o l i c y .

GEN ERAL AGGREGATE L I MIT

PRODUCTS/COMPLETED OPERATIONS AGGREGATE LIM I T

EACH OCCURRENCE LIMIT

PERSONAL AND ADVERTISING I NJURY LIM N '

PREMISES RENTED TO YOU LIMIT (per premi se)

RETAINED LIMIT

4,500,000

4,500,000

500,000

500,000

50,000

XS5U91c



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FORMS AND ENDORSEMENTS

N : j r n c J I n s u r e d Racetrac Petroleum, Inc .

I 1olic y Symbol Po l icy Number P u f i c y P e r i o dXSL 620593854 06/0 /2005

I s s u e d B y ( N a m e o l ' i n s i n - a n c e C o m p a n y )

ACE American Insurance Company

06/01/2005to 0 6 /02/2 0 0 6

i n s e r t t h e p o l i c y n u m b e r . T h e r e m a i n d e r o f t he n f o r ma t i o n i s t o W c o m pl e t e d o n l y w he n t h i s e n d o r s e m e n t i s i s s u e d s u b se q u en t t o t h e p r ep a r a t i o n o f t h e po l i c y .

DescriptionAmendment Of Cancellation Provisions - Notice To AdditionalInterest (s)

Additional Insured - Managers or Lessors of PremisesAdditional Insured - VendorsEmployee Benefits Liability CoverageLoss Adjustment Expense Within LimitsPollution Exclusion - Hostile Fire ExceptionWaiver of Transfer of Rights of Recovery Against Others ToUs

MTBE ExclusionSilica, Dust and Particulate Matter ExclusionNuclear Energy Liabili ty Exclusion Endorsement (Broad Form)

Liquor Liability

Conditional Limitation of Coverage For Terrorism On AnAnnual, Aggregate Basis (Relating To Disposition of FederalTerror

War Liability Exclusion

Disclosure of Premiumand Estimated Premium For CertifiedActs of Terrorism Coverage (Pursuant to Terrorism RiskInsuranFlorida Changes - Cancellation and Nonrenewal

Georgia Changes - Cancellation and Nonrenewal

Louis ana Changes - Insuring Agreement

Louis~ana Changes - Legal Action Against UsI,ouiss~ ana Changes - Insuring AgreementLouisiana Changes -- Cancellation and NonrenewalMissi: j sippi Changes - Cancellation and NonrenewalNorth Carolina Changes - Cancellation and NonrenewalSouth Carolina Changes - Cancellation and Nonrenewal'I'enne6s ee Changes - Cancellation and NonrenewalTexas ChangesTexas Changes - Duties

Texas Changes - Cancellation and Nonrenewal Provisions ForCasualty Lines and Commercial Package PoliciesVirginia ChangesIL0138 019931 .

t. ,

CC- I # ; 1 5 P t d I n U . S.A.

r

SCHEDULE

Gtd nfscmcnl iVumM: r(Page 2 of 2)

Endt. NoA .

5 .

6 .

7 .

8 .

9 .

1Q .

1 1 .

12 .

13 .

1 4 .

15 .

16 .

17 .

18 .

19 .

20 .

21 .

22 .

23 .

24 .

25 .

26 .

27 .

28 .

29 .

30 .

Form No.C C lE 1 5

XSbw30XS6W31

XS6W24AXS609225XS6W35XS 6W34

LD15284LD15270IL00210509

CG290$1093TR16537

CG00621202ALL16541

CG02200398

TL02620702

CGO 1250897

CGOI180395

CG28150897

IL02770301

iLo2sza9Qo

IL02690900

IL02490899

IL02506900

CG01031000

TLd1560101

IL02750702



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refer to the Named Insured sh o wn i n the Declarations, and any

Insured u n d e r t h i s p o li c y . T h e w o r d s " w e " , " u s " a n d " o u r " r e f e r t o

Th roughout this po l icy the words "you" a ndo t h e r p e r s o n o r or g a n i z a t i o n q u a l i f y i n g a s a

the company providi n g t h i s i nsurance

b. T h i s i n s u ra n c e a p p l i e s t o " b o d i l y i nj u r y " a n d " p r o p e r t y d a m a g e " o n l y i f :

( 1 ) The " b o d i l y i n ju ry " o r " p r o p e rt y d a m a g e " i s c a u s e d b y a n " o c c u r r en c e " t h a t t a k e s p l a c e i n t h e " c o v e r a g e

t e r r i t o r y " ;

{3) P r i o r t o t he po l i c y p e r i o d , n o i n r e d l i s t ed under P aragraph 1 . o f S e c t i o n E I - Who Is An Insured and no

"emplo yee' aut h o r i z ed b y y o u t o g i v e o r r e c e i v e n o t ice o f an "occ u r r ence" o r c l a im, k n e w t h a t t h e " b o d i lyi n j u r y ' o r " p r o p e r t y d a mage" h occur r e d , i n w h o l e o r i n p a r t , I f s u c h a l i s t e d i n s u r e d o r a u t h o r i z e d"empl oyee" knew, pr i o r t o t h e p l i cy p e ri od , t h a t t he "bodi l y i n j u r y " or " pr op er t y d amage" occurred, t henany con t inuati on, change or resumption o f s u c h " b o d i l y i n j u r y " o r " p roperty dama ge" during or after the

p o l icy period will be deemed t o e v e be e n k n o w n p r i o r t o t h e p o l i c y p e r io d

" B o d i l y i n j u r y " o r " p r o pe r t y d a m

period, known to have occ urn

I ns u red or any "em p l o y e e " a l .

i n c l udes any cont i n u a t i o n , c h a r

o f t h e p o l i c y p e r i o d .

l e " w h i c h occurs dur i n g t h e p o l i cy per i o d a n d w a s n o t , p r i o r t o t h e p o l i c y

by any insured li sted under Paragraph 1 . o f S e c t i o n I ! - Who Is An

o r ized by you to giv e o r rece i ve no t ice of an "occ urrence" or claim,

o r r e s um p t i o n o f t h a t " b o d i ly i n j u r y ' o r " p ro p e rt y d a m a g e " a f t e r t h e e n d

" B o d i l y i n j u r y " or "property dam e" will be deemed t o have been known t o h a v e o cc u rr e d a t t h e e a r l i es t

time when an y insured list ed u der Paragraph 1 . o f S e c t i o n 11 - Who Is An Insured or any "employee '

authorized by yo u t o g i v e o r r e c e i v e n o t i c e o f a n " o c c u r r e n c e " o r cl a i m :

(1 ) R ep or t s a l l, or a ny pa r t , o f t h e "bodily injury" or "proper ty damage" t o u s o r a n y o t h e r i n s u r er ;

(2) Receiv es a w r i t t e n or ~erbal dementd o r c l a i m f o r d a m a g e s b e c a u s e o f t h e " b o d i l y i njury" or

" p r o pe r t y d a m a g e " ; o r

( 3) Becomes aware by any otf~er means that "bodily i njury" or "property damage" has occurred or has

begun to occur .

( 0 7 / 0 2 ) R e p r i n t e d i n p a r t w i ~ h p e r m is s i o n o f I n s u r a n c e S e r v i c es O f f i c e , I n c ., 1998 Page 1 of 17

' ~ . . ~

XS-6091c

POLICY NUMBER : XSL G20593854

a ce usa

Va r i o u s p r o v i s i o n s i n t h i s p o l i c y r e s t r i ctw h a t i s a n d i s n o t c o v e r ed .

Excess Commerci a l

G e n e r a l L i a b i l i t y P o l i c y

Read t h e e n t i r e p o l i c y c a r e f u l l y to det ermine rights, duties a nd

The word "insu red" means any person or organizati on qua l i f ying a s suc h under SECTION It . WHOIS AN INSURED

Other words and phrases that a ppear in quototi on ma rks have special meaning . Refer to SECTION V. DEFIN I TION

SEC TION 1 - COVERAGESCOVERAGE A. BODILY INJURY AND PROPERTY DAMAGE LIABILITY

1 . Insurin g Agreem e n t .

a . W e w i l l p a y t h e i n s u r e d f o r t h e " u l t i a t e n e t l o s s " i n e x c e s s o f t h e " r e t a i n e d I i r n i Y ' s h o w n i n t h e D e c l a r a t i o n s

that the insured becomes legally obl igated to pa y as damages because of "bodil y injury" or "property

dam age" t o which thi s in suran ce appl ies . No other obligation or liability to pay sums or perform acts or

services is cov ered unl ess explicit ly provided for under DE FENSE, INVESTIGATION, SETTLEMENT,---, LEGAL EXPENSES, AND INTEREST ON JUDGMENTS . But the amo unt we will pa y for the "ultimate net

loss " beca use of da mag es is l imi ted s d escribed in LIMITS OF INSURANCE (SECTION ill ) .

( 2 ) T he " bo d i l y i n j u r y " o r "pr o per t y d O i n a g e " o c c u r s d u r i n g t h e p o l i c y p e r iod ; and

d .



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2 . Exclu s i o n s .

This insurance does not apply to :

a . Expec t e d o r I n t e n d ed I n j u r y

"Bod i l y i n j u r y " o r " p r o p e rt y d a m

does not app l y t o " b o d i l y i n j u r y "

b . Contractual Liability .

" B o d il y i n j u r y " o r " p r o p e r t y d a l

assumption o f l i a b i l i ty i n a co n '

' " f o r w h i ch t h e i n s u r e d i s o b l i g a t e d t o p a y d a m a ges by re a so n of t h e

or agreement . T h i s e x c l us i o n d o e s n o t a p p l y t o l i a b i l i t y f o r d a m a g e s :

E

X S - 6 U 9 1 c ( 0 7 1 0 2 ) R e p r i n t e d i n p a r t w i t h p e r m i s s io n o f I n s u r a n c e S e r v i c es O f f i c e, I n c ., 1998 Page 2 of 1 7

e. Damages be c a u se of " b o d i l y i n j ~ r y include damages c l aimed by any person or orga n iza t io n f o r care , l o s so f s e r v i c e s o r de a t h r e s u l t i n g a t a n time from the " b o d i l y i n j u r y " .

expected or int ended from the standpoin t of the insu red . Th i s e x c l u s i o nt i n g f r o m t h e u s e o f r e a s o n a b l e f o r c e t o p r o t e c t p e r s o n s o r p r o p e r t y .

( 1 ) T h a t t h e insured woul d h a v e i n ' t h e a b s e n c e o f t h e con t ract or agreemen t ; o r

( 2 ) A s s u m e d i n a c o n t r a c t o r a g r e e m e n t t h a t i s a n " i n s u r e d c on t r a c t " p r o v i d e d t h e " b o d i l y i n j u r y" o r " p r o p e r t y

damage" occurs subsequent to the execution of the contract or agreement . S o l e l y f o r t h e p u r p o s e s o f

liabili ty assumed in an "insu red contract', reasonable attorney fees and necessary litigati on expenses

incu rred by or for a party other than an insu red are deemed to be damages because of "bodily inju ry" or

"property damage", provid ed :

( a ) L i a b i l i t y t o s u c h p a r t y f o r , o r f o r t h e c o s t o f , t h a t p a r t y ' s d e f e n s e h a s a l s o b e e n a s s u m e d i n t h e s a m e

" i n s u r e d c o n t r a c t " ; a n d

( b ) S u c h a t t o r n e y f ee s a n d l i t i g a t i o n e x p e n s es a r e f o r d ef e n se o f t h a t p a r t y a g a i n s t a c i v il o r a l t e r n a t i v e

d i s p u t e r e s o l u t i o n p r oc e e di n g i n w h i c h d a m a g e s t o w h i c h t h i s i n s u r a n c e a p p l i e s a r e a l l e g e d .

c . Liquor L i a b i l i t y .

" B o d i l y i n j u r y " o r " p r o p er t y d a R l a g e " f o r which any in s u red may be h e ld l i a b le by reason of

( 1 ) C a u s i n g o r c o n t r i b u t i n g t o t h e i n t o x i c a t i o n o f a n y p erso n ;

( 2 ) Th e f u r n i s h i n g o f a l c o h o l ic b e v e r a g e s t o a p e r s o n u n d e r t h e le g a l drinking age or under the i nfluenceo f a lcohol ; o r

( 3 ) An y sta t ute, ord inance or regulation rela t ing to the sale, gi f t , d i s t r i bu t i o n or use of alcoholicbeverages .

T h i s e x c l u s i on a p p l i e s o n l y i f y o u a r e i n t h e b u s i n e s s o f m a n u f a c t u r i n g , d i st r i b u t i n g , s e l l i n g , s e r v i n g o r

f u r n i s h i n g a l c o h o l i c b e v e r a g e s

d . Workers Compensati on an d !Similar Laws .

A n y o b l i g a t i o n o f t h e i n s u r e q u n d e r a w o r k e r s co m p e n s a t i o n , d i s a b i l i t y b e n e f i t s o r u n e m p l o y m e n t

c o m p e n s a t i o n l a w o r a n y s i m i l a r l a w .

e . E m p l o y e r s L i a b i l i t y .

" B o d i l y i n j u r y " t o

( 1 ) A n " e m p l o y e e " of t h e i n s u r e d a r i s i n g ou t o f a n d i n t h e c o u r s e o f :

(a) Employment by the insured ; o r

( b ) P e r f o r m i n g d u t i e s r e l a t e d t o t h e c o n d u ct o f t h e i n s u r e d ' s b u s i n es s ;

( 2 ) T h e s p o u s e , c h i l d , p a r e n t , b r o t h e r o r sister of th at " e m p l o ye e " a s a c o n s e q u e n c e o f ( 1 ) a b o v e .

T h i s e x c l u s i o n a p p l i e s :

( 1 ) W h e t h e r t h e i n s u r ed m a y t ~ e l i a b l e a s a n e m p l o y e r o r i n a n y o t h e r c a p a c i t y ; a n d

( 2) To an y o b l i g a t i o n to share dam ages with or repay someone else who must pay dam ages becaus e of

t h e i n j u r y .



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l o s s , l ia b i l i t y o r l e g a l o b l i g a t i o n a r i s i n g o u t o f o r i n a n y w a y r e l a t e d t o

g . Ai rc ra f t , A u t o or Wa t e r craf t .

(1) Property you own, rent or oc cupy, includi ng an y costs or expenses incurred by you, or any other

person, organizati on o r entity, for repair, replacement, enhancement, restoration o r maint enance of

such property for any reason, includin g prevention of injury to a person or dama ge to anot her's

property :

( 2 ) P r e m i s e s y o u s el l , g i v e a w a y o r a b a n d o n , i f t h e " p r op e r t y d a m a g e " a r i s e s o u t o f a n y p a r t o f t h o s e

premises ;

( 3 ) P r o p e r t y l o a n e d t o y o u ;

(4 ) P e r s o n a l p r o p e r t y i n t h e c a r e , c u s t o d y o r c o n t r o l o f t h e i n s u r e d ;

X5-6U91c ( 0 7 / 0 2 ) R e p r i n t e d i n p a r t w i t h p e r m i s s i o n o f I n s u r a n c e S e r v i c es O f f i c e , I n c . , 1998 P a ge 3 o f 1 7

~ , . . j

Th i s e x c l usion does n o t a p p l y

f . Pollution .

Any inju ry, dama ge, expense,

"polluti on", however caused

l i a b i l i t y a s s u m e d b y t h e i n s u r e d u n d e r a n " i n s u r e d c o n t r a c t " .

"Bodily injury" or "property damage" arising o ut of the ownership, main tenanc e, use or entrustment t o

o t h e r s o f a n y a i r c r a f t , " a u t o " o r a t e r c r a f t o w n e d o r o p e r a t e d b y o r r e n t e d o r l oa n e d t o a n y i n s u r ed . Use

includes operation and "loading r unloading" .

T h i s e x c l u s i on a p p l i e s e v e n i f t l l ~ e c l a i m s a g a i n s t a n y i n s u r e d a l l e g e n e g l i g e n ce o r o t h e r w r o n g d o in g i n

t h e s u p e r v i s i o n , h i r i n g , e m p l o y m e n t , t r a i n i n g o r m o n i t o r i n g o f o t h e r s b y t h a t i n s u r e d , i f t h e " o c c u r r e n c e "

which caused t he "bodily injury" or "property damage" in volved t he ownership, maint enance, use or

entrustm ent to o thers of any ~ircraft, "aut o" or watercraft that is owned or operated by or rented or

loaned to an y insured .

T h i s e x c l u s i on d o e s n o t a p p l y t d :

( 1 ) A watercraft while asho re on premises you own or rent ;

( 2 ) A w a t e r c r a f t y o u d o n o t o w n i t h a t i s :

( a ) L e s s t h a n 5 '1 f e et l o n g : e n d

( b ) N o t b e i n g u s e d t o c a r r y persons o r p r o p e r t y f o r a c h a r g e ;

(3) Parking a n " a u t o " o n , o r on the ways next t o , p r e m i s e s y o u o w n o r r e n t , p r o v i de d t h e " a u t o " i s n o t

o w n e d b y o r r e n t e d o r l o a n e d t o y o u o r t he insured ;

( 4 ) Liability assumed under any "insu red contract " for the ownership, main tenanc e or use of a i r c r a f t o r

w a t e r c r a f t ; o r

( 5 ) "Bod i l y in j u ry " or "property damage" a r i s i n g o u t o f t h e operation of any of the equipment l is te d i n

paragraph f . ( 2 ) or f . ( 3 ) o f t h e d e f i n i t i on of "mobile equ i pment" .

h . Mobile E quipm e n t .

" B o d i l y i n j u r y " o r " p r o p e r t y d a m a g e " a r i s i n g o u t o f :

( 1 ) The transportation of "mobil e equipment" by an "auto" o wned or operated by or rented or loa ned to

any insured : or

( 2 ) T h e u s e o f " m o b i l e e q u i p m d n Y " i n , o r w h i l e i n p r a c t i c e f o r , o r w h i l e b e i n g p r e p a r e d f o r , a p r e a r r a n g e d

r a c i n g , s p e ed o r d e m o l it i o n 6 o r t t e s t o r i n a n y s t u n t i n g a c t i v i t y .

L Wa r .

" B o d i l y i n ju r y " o r " p r o p er t y d a m a g e " d u e t o w a r , w h e t h e r o r n o t d e c l a r e d , o r a n y a c t o r c o n d i t i o n i n c i d e n t

to war. W a r i n c l u d e s c i v i l w a r , i n s u r r e c t i o n , r e b e l l i o n o r r e v o l u t i o n . T h i s e x c l u s i o n a p p l i e s o n ly t o l i a b i l i t y

assumed und er a contract or agreement .

j . Damage to Prop er t y .

" P r o p e rt y d a m a g e " t o :



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( 5 ) T h a t p a r t i c u la r p a r t o f re a l

d i r e ct l y o r i n d i r e ct l y o n y o ur

t h o s e o p e ra t i o n s ; o r

( 6 ) T h a t p a r t i c u l a r p a r t o f a n y p

was incorrectl y performed o i t .

k . D a m a ge t o Y o u r P ro d u c t .

" P r o p e r t y d a m a g e " t o " y o u r w o r k " a r i s i n g o u t o f i t o r a n y p a r t o f i t a n d i n cl u de d i n t h e " p ro du c t s -

completed o p e ra t i o n s h a z a r d " .

T h i s e x c l u s i on d o e s n o t a p p l y I f the damaged work or the work out of which the dam age arises was

p e r f o r m ed o n y o u r b e h a l f b y a s u b c o n t r a c t o r .

Damage to Impaired Property or Property Not P h y s i c a l l y I n j ur ed .

"Property dama ge " t o " i m p a i r e d property" o r property that has not been physi c a l l y i n j u r e d , a r i s i n g ou t o f :

(1 ) A d e f e c t , d e f i c i e n c y , i nadequacy or dangerous conditio n in "your product" or "your work" ; or

(2 ) A d e l a y o r f a i l u r e b y y o u 6 r a n y o n e a c t i n g o n y o u r b e h a l f t o p e r f o r m a c o n t r a c t o r a g r e e m e n t i n

accordance w i t h i t s terms .

T h i s e x c l u s io n d o e s n o t a p p l y t J o t h e loss o f u s e o f o t h e r p r o p e rt y a r i s i n g o u t o f s u d d e n a n d a c c i d e n t a l

p h y s i c a l i n j ur y t o " y o u r p r o d u c t " f o r " y o u r w o r k " a f t e r i t h a s b e e n p u t t o i t s i n t e n d e d u se .

R e c a l l o f P r o d u c t s , W o r k o r Impaired Property .

Damages claim ed for any l o s s , host or expense i n c u r r e d b y y o u o r o t h e r s f o r t h e l o s s o f u s e , w i t h d r a w a l ,

r e c a l l , i n s p e c t i o n , r e p a i r , rep ia comen#, adjustment, removal or disposal of:

. . . ,

n

(1) Your produc t ;

(2) "Your work" ; o r

(3) "Impaired pro perty" ;

i f s u c h p r o d u c t , w o r k , o r p r o p e r l y i s w it h d r a w n o r r e c a l l e d f r o m t h e m a r k e t o r f r o m u s e b y a n y p e r s o n o r

o r g a n i z a t i o n b e c a u s e o f a l c n o v ~ n o r s u s p e c t e d d e f e c t , d e f i c i e n c y , i n a d e q u a c y o r d a n g e r o u s c o n d i t i o n i n

i t .

o . Personal And Advertis ing Injury

' B o d i l y i n j u r y " a r i s i n g o u t o f " p e r s o n a l a n d a d v e r t i s i n g i n j u r y ' .

p . A s b e s t o s .

A n y l o s s , d em a n d , c l a i m o r " s u i t " a r i s i n g o u t o f o r r el a t e d i n a n y w a y t o a s b e s t o s o r a s b e s t o s - c o n t a i n i n g

materials . .

XS-GU91c (07/02) R e p r i n t e d i n p a r t w i t h permission o f Insurance Services O ff ic e, I n c . , 1998 Page 4 of 17

property on which you or any contrac tors or subco ntract ors working

behalf are performing operations, if the "property damage" arises ou t of

t h at m u s t be restored, repaired or replac ed becau se "your work")

Paragraphs (1), (3) and (4) oft is exclusi on do not a pply to "property damage" (other than da mage by

fire) to premises, includ ing t he contents of such premises, rented to you for a period o f 7 or fewer

consecutive days . A separate i mit o f insurance applies to Damag e To Premises Rented To You as

described in Section I l l - LIMITS OF INSURANCE.

Pa r a g r a p h ( 2 ) o f t h i s e x c l u s i on does not app l y i f t h e premises are "your work" and were never occupi ed,rented or he l d f o r r e n t a l b y y o u

Paragraph s (3 ) , ( 4 ) , ( 5 ) and (6 ) o f t h i s e x c l u s i o n do n o t a p p l y t o l i a b i l i t y a s s u m e d u n d e r a s i d e t r a c k

agreement .

P a r a g r a p h ( 6 ) o f t h i s e x c l usion d oes not apply to "property d amage" inc l uded in the "product s-comple ted

operat ions hazard" .

i .

m.

"Property dama ge" t o " y o u r p r o d u c t " a r i s i n g o u t o f i t o r a n y p a r t o f i t .

Damage to Your Work .



8/67

l o s s , l i a b i l i t y o r l e g a l o b l i g a t i o n a r i s i n g o u t o f o r a l l e g e dl y a r i s i n g o u t

toxic properties of lead or lead-contain ing products, materials or

r . Employment Related

" B o d i l y i n j u r y " t o :

(4 ) A s u s e d i n t h i s e x c l u s i o n :

( a ) " H a z a r d o u s p r o p e r t i e s " i n c lu d e r a d i o a c t i v e , t o x i c , o r e x p l o s iv e p r o p e r t i e s ;

( b ) " N u c l e a r m a t e r i a l " m e a n s " s o u r ce m a t e r i a l " , " s p e ci a l n u c l e a r m a t e r i a l " , o r " b y - p ro d u c t m a t e r i a l " ;

( c ) " S o u r c e m a t e r i a l " , " s p e d i a l n u c l e a r m a t e r i a l " , a n d " b y - p r o d u c t m a t e r i a l " h a v e t h e m e a n i n g s g i v e n

them in t he Atomic Energy Act of 1954 or in a ny law amendat ory thereof ;

XS - 6U91c ( 0 7 / 0 2 ) R e p r i n t e d i n p a r t wi t h p e r m is s i o n o f I n s u r a n c e S e r v i c e s O f fi c e , I n c . , 1 9 9 8 P a g e 5 o f 1 7

q . Lead .

A n y i n j u r y , dam age, expense ,

of o r in an y way related to

substances .

( 1 ) A p e r s o n a r i s i n g o u t o f a n y :

( a ) Refusa l to employ t hat person ;

(b) Terminati on of that person's employment ; o r

( c) Employment-related practices, policies, acts or omissio ns, such as coercion, demotio n ,

evaluatio n, reassignmen t , d i s c i p l ine, defamat ion, harassment, humil iation or discrimi n a t i o n

d ir ec t ed a t t h a t person ; o r

( 2 ) Th e s p o u s e , c h i l d , p a r e n t , b r other or sister of that person as a co nsequence o f "bod i l y i n j u r y " t o t h a tperson at whom any of the employment-related practic es described in paragrap h s ( a ) , ( b ) or ( c )

a b o v e i s d i r e c t e d .

T h i s e x c l u s i o n a p p l i e s :

( 1 ) W h e t h e r t h e i n s u r e d m a y b e l i a b l e a s a n e m p l o y e r o r i n a n y o t h e r c a p a c i t y - , a n d

(2) To any obliga tion to share dama ges with or repay someone else who must pa y damages becau se of

t h e i n j u r y .

s . N uc l e a r En ergy .

" B o d i l y i n j u r y " o r " p r o p e r t y d a m a g e " :

(1) With respec t to wh i ch a n i n s u r e d u n d er t h e p o l i c y i s a l s o a n i n s u r e d u nder a n u clear energy l i a b i l i t y

p o l i cy i s s u ed by N uclea r Energy Liab i l i t y I nsurance Associatio n , Mutua l At omic Energy Liabi l i t yUnderwriters, Nuclear Insuran ce Associa tion of Canada, or any of their succ essors, or would be an

insured u n der any such poky but for its termin atio n upon exhaus t i o n o f i t s l i m i t o f l i a b i l i t y ; o r

( 2 ) R e s u l t i n g f r o m t h e " h a z a r d o u s p r op e r t i e s " o f " n uc l e a r m a t e r i a l " a n d w i t h r e s p ec t t o w h i c h :

( a ) a n y p e r s on o r o r g a n i z a t i o n i s r e q u i re d t o m a i n t a i n f i n a n c i a l p r o t e c t i o n p u r su a n t t o t h e A t o m i c

E n e rg y A c t o f 1 9 5 4 , o r a n y l a w a m e n d a t o r y t h e r e of ; o r

( b ) t h e i n s u r ed i s , o r h a d t h i s p o l i cy n o t b e e n i s s u e d w o u ld b e , e n t i t l e d t o i n d e m n it y f r o m t h e U n i t e d

States of America, or any agency thereof, under an y agreement entered into by the United

S t a t e s o f A m e r i c a , o r a r t y a g e n c y t h e r e o f , wi t h a n y p e r s o n o r o r g a n i z a t i o n .

( 3 ) R e s u l t i n g f r o m t h e " h a z a r d o u s p r o p e rt i e s " o f " n u c l e a r m a t e r i a l " , i f :

(a ) The "nuc lear materia l " ( 1 ) i s a t a n y " n u c l e a r f a c l i t y " owned by, operated b y o r o n b e h a l f o f , a n

insured , or ( 2 ) ha s been disc harged or dispersed therefrom ;

( b) T h e " n u cl e a r m a t e r i a l " i s c o n t a i n e d i n s p e n t f u e l o r wa s t e a t a n y t i m e d i s p o s e d , h a n d l e d , u s e d ,

processed s t o r e d, t r a n s p o r t e d o r d i sposed o f , b y o r o n b e h a l f o f a n i n s u r e d ; o r

( c ) T h e " b o d i l y i n j u r y ' or " p r o p e rt y d a m a g e " a r i s e s o u t o f t h e f u r n i s h i n g by an ins ured of seNices ,

material s, parts or equipment in connection with the p l anning, constructi on , maintenance ,

operation or use of any ' n u c l e a r f a c i l i t y " , bu t i f s u c h f a c i l i t y i s l o c a t e d w i t h i n the United S t a t e s of

America, i t s t e r r i t o r i e s o r p o s s e s si o n s , t h i s e x c l u s i o n ( 3 ) ( c ) applies only to "property damage " t o

s u c h " n u c l e a r f a c i l i t y ' a n d any property t h e r e a t .



9/67

(4 ) Any structure, basin, excava tion, premises, or place prepared or us ed for the storage or

d i s p o s a l o f " w a s t e " : a n d

( 5 ) T h e s i t e o n w h i c h a n y o f t h e f o r e g o i n g is l o c a t e d , a l l o p e r a t i o n s c o n d u c t e d o n s u c h s i t e a n d

all premises used fdr such operations .

( g ) " N u c l e a r r e a c t o r " m e a n s a n y a p p a r a t u s d e s i g n e d o r u s e d t o s u s t a i n n u c l e a r f i s s i on i n a s e l f -

s u p p o rt i n g c h a i n r e a c t i o n o r t o c o n t a i n a c r i t i c a l m a s s o f f i s s i o na b l e m a t e r i a l ;

( h ) " P r o p e r t y d a m a g e " i n c l o de s a l l f o r m s o f r a d i o a c t i v e co n t a m i n a t i o n o f p r o p e r t y .

r e n t e d t o y o u o r t e m p o r a r i l y y

a p p l i e s t o t his cove r age a_-- -4

1 . I ns u r i ng Agreement

b . Material Published With Knobl edge OF Falsi ty

" P e r s o n a l a n d a d v e r t i s i n g in j u r { a r i s i n g o u t o f o r a l o r w ri t t e n p u b l i c a t i o n o f m a t e r i a l , i f d o n e b y o r a t t h e

d i r e c t i o n o f t h e i n s ur e d wi t h k n d w l e d ge o f i t s f a l s i t y .

XS-6U91c ( 0 7 / 0 2 ) R e p r i n t e d i n p a s t w i t h p e r m i s s i o n o f I n s u r a n c e S e r v i c e s O f f i c e , I n c ., 1998 Page 6 of 17

( d) "Spent fuel" means any fuel element or fuel componen t , solid or l i qui d, which has bee n used o r

exposed to radia t i o n i n " n u c l ear reacto r ;

(e ) " 1 l Va s t e" means an y wa to ma t er ia l ( 1 ) c o n t a i n i n g " by - p r o d u c t m a t e r i a l " o t h e r t h a n t h e t a i l in g s or _ - - ,wastes pro d uced by t e extrac t ion or concentratio n of uranium or thorium from any ore ;

processed primarily for is "source ma t e r i a l " c o n t e n t , a n d ( 2 ) r e s u lt i n g f r om the operation by a n y

person or organization of any nuc l ea r f a c i l i t y i n c l u d e d u n d e r t h e f irst two paragraphs o f the

de f i n i t i on o f n u c l ea r f a c i l i t y - ,

( f ) " N u c l e a r f a c i l i t y " m e a n s

( 1 ) Any "nuclear reacto

( 2 ) A n y e q u i p m e n t o r d e v ic e d e s i g n ed o r u s e d f o r ( a ) s e p a r a t i n g t h e i s o t o p e s o f u r a n i u m o r

p l u t o n i u m , ( b ) p r o c es s i n g o r u t i l i z i n g " s p e n t f u e l " , o r ( c ) h a n d l i n g , p r o ce s s i n g o r p a c k a g i n g

" w a s t e " ;

(3) Any equipment or device used for the processing, fabricatin g or all oying of "special n uclear

m a t e r i a l " i f a t a n y t i m e t h e t o t a l a m o u n t o f s u c h m a t e r i a l i n t h e c u s t o d y o f t h e i ns u r e d a t t h e

premises where such equipment o r device is l ocated co nsists of or c ontains more than 25

grams of pluton ium or uran ium 233 or any combi nat ion thereof, or more than 25 0 grams of

urani um 235 ;

E x c l u s i o n s c . t h r ough n . d o n o t a p p l y t o d a m a g e b y f i r e t o p r e m i s e s w h i l e

occup i ed by you w i t h p er m is s io n o f the owner . A s e p a r a t e l i m i t o f i n s u r a n c ed e s c ri b e d i n S E C T I O N I I I , LIMITS OFINSURANCE

COVERAGE S . PERSON A L AND ADVERTISING I N JU RY L I A B I L ITY

a . W e w i l l p a y t h e i n s u r e d f o r t h e " u l t i m a t e n e t l o s s " i n e x c e s s of t h e " r e t a i n e d l i m it " s h o w n i n t h e

D e c l a r a t i o n s t h a t t h e i n s u re d b e co m e s l eg a l l y o b l i g a t e d t o p a y a s d a m a g e s b e c a u s e of " p e r so n a l a n d

a d v e r t i s i n g i n j u r y " t o w h i ch t h i s i n s u r a n c e a p p l i e s . N o o t h e r o b l i g a t i o n o r l i a b i l i t y t o p a y s u m s o r p e r f or m

acts or servic es is cdv ered unl ess explici tly pro vided for und er DEFENSE, INVESTIGATION,

SETTLEMENT, LEGAL EXPENSES AND INTEREST ON JUDGMENTS. B u t t h e a m o u n t w e w i l l p a y f o rthe "ult imat e net loss" beca use of da mages is limi ted a s described i n SECTION III LIMITS OF

INSURANCE.

b. Th i s i n s u r a n c e a p pl ie s t o " p e r s o n a l a n d a d v e r t s i n g i n j u r y " c a u s e d b y a n o f f e n s e a r i s i n g o u t o f y o u r

b u s i n e s s bu t o n l y i f t h e o f f e n s e wa s c o m m i t t e d in t h e " c o v e ra g e t e r r i t o r y " d u r in g t h e p o l icy per i o d .

2 . Exclus i o n s .

T h i s i n s u r a n c e d o e s n o t a p p l y t o

a . Knowing Violati on Of Rights O f A n o t h e r

" P e r s o n a l a n d a d v e r t i s i n g in j u r y " c a u s e d b y o r a t t h e d i r ec t i o n o f t h e i n s u r e d wi t h t h e k n o w l ed g e t h a t t h e

a c t w o u l d v io l a t e t h e r i g h t s o f a n o t h e r a n d w o u l d i n fl i c t " p e r s o n a l a n d a d v e r t i s i n g i n j ur y .



10/67

d . Criminal A c t s

arising out of a criminal act co mmitt ed by or at the direction of the

e . Contrac t u a l L i a b i l it y

j . Insureds I n Media And Interned Type Busin ess

" Pers onal and a dv e r t i s i n g i n j u r y ' comm i t t ed by an i n s u r ed whose bu s i ness i s :

( 9 ) A d v e r t i s i n g, b r o a d c a s t i n g , p u b l i s hi n g o r t e l e c a s t i n g ;

( 2 ) D e s i g n i n g o r d e t e r m i n i ng c o n t e n t o f w e b - s i t e s f o r o t h e r s ; a n d _ .ry

m. P o l l u t i o n~ , " P e r s on a l a n d a d v e r t i s i n g i n j u r y a r i s i n g o u t o f a n y i n j u r y , d a m a g e , e x p e n s e , c o s t , l o s s , l i a b i l i t y o r l e g a l

~ obligatio n arising out of or in any' way related to "polluti on", however caused ;

XS-6U91c (07/02) R e p r i n t e d i n p a r t w i t h p e r m i s s i o n o f I n s u r a n c e S e r v i c es O f f i c e , I n c ., 1998 Page 7 of 17

c . Mate r i a l P u b l i sh e d P r i o r T o Policy P er i o d

"Personas and advertising inju ~y" arising out of oral or written publicat ion of material whose first

p u b l i c a t i o n t o o k p l a c e b e f o r e t h b e g i n n i n g o f t h e p o l i c y p e r i o d .

"Personal and advertisi ng

insured .

" P e r s o n a l a n d a d v e r t i s i n g i n ju r y " f o r wh i c h t h e insured has assume d l i a b i li t y i n a c o n t r a c t or a g r ee m en t .

T h i s e x c l u s io n d o e s n ot a p p l y t c i l i a b i l i t y f o r d a m a g e s t h a t t he insured would hav e i n the abse n c e o f t h e

contract or agreement

f . Br e a c h Of Co n t r ac t

"Personal and advertising injury arising out of a breach o f c o n t r a c t , e x c ep t a n i m p l i ed c o n t r a c t t o u s e

a n o t h e r ' s a d v e r t i s i n g i d e a i n yo u r "advertisement" .

g. Qua l i t y Or P e r f o rmance O f G o b d s - F a i lure To Conform To Statement s" P e r s o n a l a n d a d v e r t i s i n g i n j u r y " a r i s i n g o u t o f t h e f a i l u r e o f g o o d s , p r o d u c t s o r s e r v i c e s t o c o n f o r m w i t h

any statement of qua l ity or performanc e made i n yo u r " a d v e r t i s e m e n t " .

h . Wrong Description O f P r i ce s

" P e r s o n a l a n d a d v e r t i s i n g i n j u r y " a r i s i n g o u t o f t h e w r o n g d e s c ri p t ion of the price of goods, products or

s e r v i c e s s t a t e d i n y o u r " a d v e r t i s o m e n t " .

i . I n f r i n g e m e n t Of C o py r i ght , Patent , Trademark Or Trade Secre t

" P e r s o n a l a n d a d v e r t i s i n g i n j u r y " a r i s i n g ou t o f t h e i n f r in g e m e n t o f co p y r i g h t , p a t e n t , t r a d e m a r k , t r a d e

s e c re t o r o t h e r i n t e l l e c t u a l p r o per t y r i g h t s .

H o w e v e r , t h i s e x c l u s i o n d o e s n c 4 a p p l y t o i n f r i n g e m en t , i n y o u r " a d v e r t i s e m e n t " , o f c op y r i g h t , t r a d e d r e s s

o r s l o g a n .

( 3 ) A n I n t e r n e t s e a r c h , a c c e s s , c o n t e n t o r s e r v i ce p r o v i d e r .

Howeve r , this exc l u s io n d o e s n o t a p p l y t o P a r a g r a p h s 1 4 a . , b . , a n d c . o f " p e r s o na l a n d a d v e r t i s i n g

i n j u ry " u n de r t h e D e f i n i t i o n s S e c t i o n .

F o r t h e p u r p o s e s o f t h i s e x c l u s i o n , t h e p l a c i n g o f f r a m e s , b o r d e r s o r l i n k s , o r a d v e r t i s i n g , f o r y o u o r

o t h e r s a n y w he r e o n t h e I n t e r n e t , i s n ot b y i t s e l f , c o n si d e r ed t h e b u s i n e s s o f a d v e r t i s i ng , b r o a d c a s t i n g ,

p u b l i s h i n g o r t e l e c a s t i n g. .

k . E l e ctroni c Chatroom s Or Bulletin B o a r d s

"Persona l and advertis i n g i n ju r y" , a r is i ng o u t o f a n e l e c t r o n i c c h a t r o o m o r b u l l e t i n b o a r d t h e i n s u r e d h o s t s ,

owns, or over which the insured exercises contro l .

[ . Unau thorized Us e Of Another's Name Or Product

" P e r s o n a l a n d a d v e r t i s i n g i n ju r y " p r i s i n g o ut o f t h e u n a u t h o r i ze d u s e o f a n o t h e r ' s n a m e o r p r o d u c t i n y o u r

e - m a i l a d d r e s s , do m a i n n a m e o r m et a t a g , o r a n y o t h e r s i m i l a r t a c t i c s t o m i s l ea d a n o t h e r s p ot e n t i a l

customers .



11/67

a r i s i n g o u t of any loss, demand, cla i m , o r " s u i t " a r i s i n g o u t o f o r r e l a t e d

r o s - c o n t a i n i n g m a t e r i a l s - , o r

" P e r s o n a l a n d a d v e r t i s i n g in j

in any way to asbes t o s o r a s

o. Employ ment -Related

SE C T I O N I L - WHO IS AN INSURE

1 . If you are design ated i n t h e p e d l a r a t i o n s a s :

A n i n d i v id u a l , y o u a n d y o u r , s p o u s e a r e i n s ~ r e d s , b u t o n l y w i t h r e s p e c t t o t h e c o n d u c t o f a b u s i n e s s

o f w h i c h y o u a r e t h e s o l e o + ~ n e r .

A p a r t n e r s h i p o r j oi n t v e n t u r e , y o u a r e a n i n s u r e d . Y o u r m e m b e r s , y o u r p a r t n e r s , a n d t h e i r s p o u s e s

a r e a l s o i n s u r e ds , b u t o n l y V ( h r e s p e ct t o t h e c o n d u c t o f y o u r b u s i n e s s .

A l i m i t e d l i a b i l i t y c o m p a n y ' y o u a r e a n i nsured . Y o u r m e m b e r s a r e a l s o i n s u r e d s , b u t o n l y w i t h

r e s p e ct t o t h e c o n d u ct o f y ~ u r b u s i n es s . Y o u r m a n a g e r s a r e i n s u r ed s , b u t o n l y w i t h r e s pe c t t o t h e i r

d u t i e s a s y o u r m a n a g e r s .

An organizatio n other than' a partnership or joint v enture or limited li abilit y company, you are an

insured . Y o u r " e x e c u t i v e o f f i c er s " a n d d i r e c t o r s a r e i n s u r ed s , b u t o n l y w i t h r e s p e ct t o t h e i r d u t i e s a s

y o u r o f f i c e r s o r d i r e c t o r s . Y o u r s t o c k h o l d e r s a r e a l s o i n s u r e d s, b u t o n l y w i t h r e s p e c t t o t h e i r l i a b i l i t y

as stockholders,

a .

b .

C .

d .

e . A t r u s t , y o u a r e a n i n s ur e d ~ Yo ur t r u s t e e s a r e a l s o i n s ur ed , bu t o n l y w i t h r e s pe c t t o t h e i r du t i e s a s ( t r u s t e e s ,

XS-6U 91c ( 0 7 / 0 2 ) R e p r i n t e d i n p a r t w l t h p e r m i ss i o n o f I n s u r a n c e S e r v i c e s O f f i ce , I n c . , 1998 P a g e 8 o f 1 7

n . As b estos

" P e r s o n a l a n d a d v e r t i s i n g in j u r y t o a p e r s o n a r i s i n g o u t o f a n y :

( a )

( i ) R e f u s a l t o e m p l o y t h a t p e r so n ;

( i i ) Terminat ion o f that pedson'S employment ; or

(iii) Employmen t - r e la t e d p ra c t ices, po l icies , a c ts or omission s, such a s coercion , demo t i o n ,evaluation, reassignnlent, disci pline, defamation, harassment, humi l i ation or discrimination

d i re c t e d a t t h a t p e r s o n ; o r

( b ) T o t h e s p o u s e , ch i l d , p a r e h t , b r o t h e r o r s i s t e r o f t hat person as a consequence of "personal injury"

to that person at whom any of the em ployment-related practi ces described in paragrap h s ( i ) , ( i i ) o r

( i i i ) a b o v e i s d i r e c t e d .

T h i s e x c l u s i o n a p p l ie s :

( a ) W h e t h e r t h e i n s ur ed m a y b e l i abl e a s a n e m p l o y e r or i n a n y o t h e r c a p a c i t y ; a n d

(b) To any ob l i g a t i o n t o share dama ges with or repay someone e l se who must pay dama ges

b e c a u s e o f t h e i n j u r y .

DEFENSE , INVESTI GATION, SET`TLEMENT, LEGAL EXPENSES, ANDINTERESTON JUDGMENTS

1 . Defense, I n v es tigation , Settlement, Legal E x p e n se s, and Prejudgme n t I n t erest

T h i s i n s u r a n c e d o e s n o t a p p l y t o d e f e n s e, i n v e s t i g a t i o n , s e t t l e m e n t o r l e g a l e x p e n s e s , o r p re j u d g m e n t

i n t e r e s t a r i s i n g o u t o f a n y " o c c u ~ ' re n c e " o r o f f e n s e , b u t w e s h a l l h a v e t h e r i g h t a n d o p p o r t u n i t y t o a s s u m e

f r o m t h e i n s u r e d t h e d e fe n s e a n d c o n t r o l o f a n y c l a i m o r " s u i t " , i n c l u d i n g a n y a p p e a l f r o m a j u d g m e n t ,

s e e k i ng p a y m e n t o f d a m a g e s ~ a v e r ed u n d e r t h i s p o l i c y t h a t w e b e l i ev e l i k e l y t o e x c e ed t h e " r e t a i n e d "

l i m i t " . I n s u c h e v e n t w e a n d t h i n s u r e d s h a l l c o o p e r a t e f u l l y .

2. Interest on Judgments

W e s h a l l p a y i n t e r e s t o n l y o n t h at amount of any j u d g m e n t w e p a y t h a t a c c r u e s a f t e r e n t r y o f t h e

j udgment and before we have la i d , o f fe r e d t o p a y , o r d ep o s i t e d i n co u r t t h a t p a r t o f t h e j u d g m e n t t h a t i s

w i t h i n t h e a p p l i c a b l e l i mi t o f i n s u ra n c e s h o wn i n t h e D ec l a r a t i o n s .



12/67

a . Y o u r " e m p l o y e es " , o t h e r t h a e i t h e r y o u r " e x e c u t i v e o f f ic e r s " , ( i f y ou a r e a n o r g a n i z a t i o n o t h e r t h a n a

p a r t n e r s h i p , j o i n t v e n t u r e o r l i m i t e d l i a b i l i t y c o m p a n y ) o r y o u r m a n a g e r s ( i f y o u a r e a l i m i t e d l i a b i l i t y

company), but onl y for acts within the sco pe of their employment by you o r while performing d uties

r e l a t e d t o t h e c o n d u c t o f Y o u r b u s i n e s s . However, none of these "employees," is an insu red for :

( 1 ) " B o d i l y i n j u r y " o r " p e r so n a l a n d a d v e r t i s i n g i n j u r y " :

a . " B o d i l y i n j u r y " t o a c o " e m pi c p y e e" o f t h e p e r s o n d r i vi n g t h e e q u i p m e n t ; o r

b . " P r o p e r t y d a m a g e " t o p r o p e r t y o w n e d b y , r e n t e d t o , i n t h e c h a r g e o f o r o c c u p i e d b y y o u o r t h e

e m p l o y e r o f a n y p e r s o n w h o i s a n i n s u r e d u n d e r t h i s p r o v i s i o n .

4 . A n y o r g a n i z a t i o n y o u n ew l y a c q u i r e o r f or m , o t h e r t h a n a p a r t n e r s h i p , j o i n t v e n t u r e o r l i m it e d l i a b i l i t y

company, and ov er which you Maint ain ownership or majority interest, will qu alify as a Named Insured if

t h e r e i s n o ot h e r s i m i l a r i n s ur a n g e a v a i l a b l e t o t h a t o r g a n i z a t i o n . However

a . C o v e r a g e u n d e r t h i s p r o v ' O on i s a f f o rd e d o n l y u n t i l t h e 1 8 0 t h d a y a f t e r y o u a c q u i r e o r f o r m t h e

o r g a n i z a t i o n o r t h e e n d o f t h e po l i c y pe r i o d , w h i c h e v er i s e a r l i e r ;

b. C o v e r a g e A d o e s n o t a p p l y t o " b o d i l y i n j u ry " o r " p r o p e rt y d a m a g e " t h a t o c c u r r e d b e f o r e y o u a c q u i r e d

o r f o r m ed t h e o r g a n i z a t i o n ; e n d

c . C o v e r a g e B d o e s n o t a p p l y o " p e r s o n a l i n j u r y " o r " a d v e r t i s i n g i n ju r y " a r i s i n g o u t o f a n o f f en s e

c o m m it t e d b e f o r e y o u a c q u i d o r f o r m e d t h e o r g a n i z a t i o n .

N o p e r s o n o r or g a n i z a t i o n i s a n i n s r e d w i t h r e s p e c t t o t h e c o n d u c t o f a n y c u r r e n t o r p a s t p a r t n e r s h i p , j o i n t

v e n t u r e o r l im i t e d l i a b i l i t y c o m p a n y t a t i s n o t s h o w n a s a N a m e d I n s u r e d i n t h e D e c l a r a t i o n s .

XS-6ll91c (07/02) Reprinted in part wi t h p e r m i s s i o n o f I n s u r a n c e S e r v i c e s Of f i c e , I n c ., 1998 Page 9 of 17

2 . Each of the fo l l o w i n g i s a l so an

(a) To you, to your pa Hers or members (if you are a partn ership or joint venture), to your

members (if you a e a li msted liabili ty company), or to a ca= employee" while that co-

"emplpyee is either in the cou rse of his or her employment or performing duties related to

the conduct o f your usiness :

J b ) T o t h e s p o u s e , c h i p , p a r e n t , b r o t h e r o r s i s t e r o f t h a t c c - " e m p l o y e e " a s a c o n s e q u e n c e o f

p a r a g r a p h ( 1 ) ( a ) a b o v e ;

( c ) For which there is any obliga tion to share dama ges with or repay someone else who must

pay damages because o f the injury described in paragraphs ( 1 ) f a F or ( b ) a b o v e ; o r

( d ) A r i s i n g o u t o f h i s o r h e r pr o v id i n g o r f a i l i n g t o p r o v i de pr o f e s s i on a l h e a l t h c a r e s e r v i c e s .

(2) "Property dam age" to property :

(a) Owned or oc cupied by,

( b ) Rented t o , in the Care, cust ody or co ntrol of, or over which physica l c o n t r o l is be i n g

exercised for an y purpose by

you, any of your "employees" a n y p a r t n e r o r m em b e r ( I f y o u a r e a p a r t n e r s h i p or j o i n t v e n t u r e ) ,

or any member (if you a r t e a l i m i t e d l ia b i l i ty company)

b. Any person ( o t h e r than your "employee"), or any organizati on while actin g as your real estate

m a n a g e r .

c . A n y p e r s o n o r o r g a n i z a t i o n h a v i n g p r o p e r t e m p o r a r y c u s t o d y o f y o u r p ro p e r t y i f y o u d i e , b u t o n l y

( 1 ) W i t h r e s p e c t t o l i a b i l i t y a r i s in g o u t o f t h e m a i n t e n a n c e o r u s e o f t h a t p r o p er t y ; a n d

( 2 ) U n t i l y o u r l eg a representative has been appo i n t ed .

d . Y o u r l e g a l r e p r e s en t a t i v e i f~ou d ie , b u t o n l y w i t h respect t o d u t i es as suc h . That r ep r esentat i v e w i l l

h a v e a l l y o u r r i g h t s a n d d u t i e s u n d e r t h i s P o l i c y .

3 . W i t h r e s p e ct t o " m o b i l e e q u i p m l e n t " r e g i s t e r e d i n y o u r n a m e u n d e r a n y m o t o r v e h i c l e r e g i s t r a t i o n l a w

a n y p e r s o n i s a n i n s u r e d w h i l e d r i v i n g s u c h e q u i p m e n t a l o n g a p u b l i c h i ghway wi t h y o u r p e r m i s s i o n . A n y

o t h e r pe r s o n o r o r g a n i za t i o n r e s po n s i b l e f o r t h e c o n d u c t o f s u ch p e rs o n is a l s o a n i n s u r e d , b u t o n l y w i t h

respec t to l i a b i l i t y a r i s i n g o u t o f t h e o p er a t i o n o f t he equipment , a n d o n l y i f n o o t h e r i n s u r a n c e o f a n y k i n d

i s a v a i l a b l e t o t h a t p e r s o n o r d r g a n i z a t i o n f or this 4i ab i l i t y . However , n o p e r s o n o r o r g a n i z a t i on i s a n

i n s u r e d w it h r e s p e c t t o y



13/67

SECTION I I I - L I M I T S OF I N CEAND RE TAINED LIMIT

a . No t ic e s ha l l be s e n t t o u s a s $ o o n a s p r a c t i c a b l e w h e n ev e r y ou h a v e i n f o rm a t i o n f r o m which you ma yreasonably conclu de that a "o ccurrence" or offense may result i n a c l a i m o r c l a i m s i n v o l v i ng

damages which , i n t h e e v e n t t h a # y v u a r e h e l d i i a b l e , a r e l ik e l y t o e x ce e d 50% o f t h e " r e t a i n e d l i m i t ' .

F a i l u r e t o g i v e n o t i c e o f a n y " c c u r r e n c e " w h ic h a t t h e t i m e o f i t s h a p p e n i n g d i d n o t a p p e a r t o e x c e e d

5 0 % o f t h e " r e t a i n e d limit" but w hi ch , a t a l a t er d a t e w o u l d a p p e a r t o g i v e rise t o a c l a i m u n d er t h i s

i n s u r a n c e , s h a l l n o t p r ej u di c e su c h c l a i m .

b . Y o u mu s t s e e t o i t t h a t w e a r e n o t i f i e d o f a n " o c c u r r e n c e " , o r a n o f f e n s e w h ic h m a y r e s u l t i n a c l a i m .N o t i c e s h o u l d i n c l u d e: 'i(1 ) How, when a nd where the i " o c c u r r e n c e " o r o f f e n se t o o k p l a c e ; and

( 2 ) The names and a ddressei o f a n y injured persons a nd a n y w i t n e s s e s ; a n d

(3 ) T h e n a t u r e a n d l o c a t i o n o l ~ l a n y i n j u r y o r d a m a g e a r i s i n g o u t o f t h e " o c c u rr e n c e " o r o ff e n s e .

XS-GU9 1 c ( 0 7 1 0 2 ) R e p r i n t e d i n p a r t w i t h p e r m i s s i o n o f I n s u r a n c e S e r v i ces Office, I n c . , 1998 Page 10 o f 17

1 . The Limits of Insurance shown n the Declaratio ns an d the rules below fix the most we will pay for the,-

" u l t i m a t e n e t l o s s " i n e x c e s s o f t e " r e t a i n e d l i m i t " r e g a r d l e s s o f t h e n u m b e r o f :

a . Insureds ;

b . Claims mad e or "suits" brow ht ; or

c . Persons or organizations m ping clai ms or bringing "suits" .

2 . T h e G e n e r a [ A g g r e g a t e L i m i t i s t h e m o s t w e w i l l p a y f o r t h e s u m o f :

a. Damages under Coverage A , e x c e p t d a m a g e s b e c a u s e o f " b o d i l y in j u r y " a n d " p r o p e r t y d a m a g e "

i n c l u d e d in t h e " p r o d u c F s - c a m p l e t e d o p e r a t i o n s h a z a r d " ; a n d

b . Damages un der Coverage EE .

3. The Products-Completed Operatio ns Aggregate Limit is the mo st we will pa y under Coverage A for

damages because of "bodily injury" and "property damage" includ ed in the "product s-completed

operations hazard" .

4 . S u b j e c t t o 2 . a b o v e , t h e P e r s o n ol a n d A d v e rt i s i n g I n j u r y L i m i t i s t h e m o s t w e wi l l p a y u n d e r C o v e r a g e 8

f o r t h e " u l t i m a t e n e t l o s s " i n e ~ c e s s o f t h e " r e t a i n e d l i m i t ' f o r d a m a g e s b e c a u s e o f a l l " p e r s o n a l a n d

a d v e r t i s i n g i n j u r y " s u s t a i n e d b y a n y o n e p e r s on o r o r g a n i z a t i o n

5 . S u b j e c t t o 2 . or 3 . a b o v e , w h i c h e v er a p p l i e s , t h e e a c h O c c u r r e n c e L i m i t i s t h e m o s t w e w i l l p a y u n d e r

C o v e r a g e A f o r t h e " u l t i m a t e n e t l o s s " i n e x c e s s o f t h e " r e t a i n e d I i m i Y ' f o r d a m a g e s b e c a u s e o f a l l " b o d i l y

i n j u r y " a n d " p r o p e r t y d a m a g e " a r i s i n g o u t o f a n y o n e " o c c u r r en c e " .

6 . Subject to 5 . abov e, the Dam~ge to Premises Rented To You Limit is the most we will pay under

C o v e r a g e A f o r t h e " u l t i m a t e n e t l o s s " i n e x c e ss o f t h e " r e t a i n e d l i m i t " f o r d a m a g e s b e c a u s e o f " p r o p e r t y

damage" to an y one premises, v~hi#e rented to you, or in the case of damage by fire, while rented to you - ,

or temporarily occu pied by you v~it h permission of the owner .

7 . I f t h e p o l i c y a g g r eg a t e l i m i t s , a s e t f o rt h i n 2 . a n d 3 . a b o v e , a r e p a i d p r io r t o t h i s p o l i c y ' s t e r m i n a t i o n

d a t e , t h i s p o l i c y ' s p r e m i u m i s f u l l e a r n e d .

T h e L i m i t s o f I n s u r a n c e o f t h i s p o i cy a p p l y s e p a r a t e l y t o e a c h c o n s e cu t i v e a n n u a l p e r i o d a n d t o a n y

r e m a i n i n g p e ri o d o f l e s s t h a n 1 2 r ~ a n t h s , s t a r t i n g w i t h t h e b e g i n n i n g o f t h e p o l i c y p e r io d s h o w n i n t h e

D e c l a r a t i o n s , u n l e s s t h e p o l i c y p e r i o d i s e x t e n d ed a f t e r i s s u a n c e f o r a n a d d i t i o n a l p e r i o d o f l es s t h a n 1 2

months . I n t h a t c a s e , t h e a d d i t i o n a l ~ p e r io d w i l l b e d e em e d p a r t o f t h e l a s t p r e c e d i n g p e ri o d f o r p u rp o s e s o f

d e t e r m i n i ng t h e L i m i t s o f I n s u r a n c e

SECTION IV - CONDITIONS

1 . Ban kr u p t c y .

B a n k r uptcy or insolv ency of the insu r e d o r o f t h e i nsured ' s e s t a t e w i l l n o t r e l i e v e u s o f o u r o b l i g a t i o n s

u n d e r t h i s p o l i c y .

2 . D u t i e s i n t h e E v e n t o f U c c u r r e Ohc e , C l a i m o r S u i t .



14/67

( 1 ) I mmed i a tely send use copies of any demands, notic es, summo nses or lega l d o c u m e n t sr e ceived i n con n ec t i o ~ w i t h the c l aim o r " s p i t " ;

( 2 ) A u t h o r i z e u s t o o b t a i r

(3) Assist us, upon o u

organizat ion which n

insurance may also a

e . You shall make a goo d fe

3 . Legal Ac tion Against Us.

e v a l u a t i o n o f a n y c l a i m f o r s e t t l e m e n t p u r p c a s e s ,

a . T h e s t a t e m e n t s i n t h e De c l a r a t i o n s a r e a c c u r a t e a n d c om p l e t e ;

b . T h o s e s t a t e m e n t s a r e b a s e d u p o n re p r e s e n t a t i o n s y ou m a d e t o u s ; a n d

c . W e h a v e i s s u e d t h i s p o l i c b r i n re l i a n c e u p o n y o u r r e p r e s e n t a t i o n s .

r

XS-6U91c (07102) Reprint ed in pa rt widh permissi on of Insura nce Servic es Office, Inc ., 1998 P a ge 1 1 o f 17

c . If a claim is made or a "suit" i s brought against an y insured which is likely to involve this

i n s u r a n c e , y o u m us t n o t i f y { u s p r o m p t l y w i t h a w r i t t e n n o t i c e o f t h e c l a i m o r " s u i t " .

d . Y o u a n d any o t h e r i n v o l v eo i n s u r e d m u s t

r e c o r d s a n d o t h e r i n f o rm a t i o n ;

request, in the enforceme n t of any rig h t a g a inst any perso n or

y be l i a b l e to the i nsured because of i njury or dama ge to which this

No person or organi zat i o n h i s a r i g h t u n d e r t h i s p o l i c y :

a . T o j o i n u s a s a p a r t y o r o t h e r w i s e b r in g u s i nt o a "s ui t " asking for damages from an i nsured ; or

b . T o s u e u s o n t h i s p o l i c y u n l e s s a l l o f i t s t e r m s h a v e b e e n f u l l y c o m p l i ed w i t h

A person or organ ization may sue us t o recover on an agreed settlement or o n a f i nal judgment

a g a i nst an insured obtained a f t er a n a c t u a l t r i a l , b u t w e w i l l n o t b e l iable for damages t h a t are not

p a y a b l e u n d e r t h e t e r m s o f h is p o l i c y or t h a t a r e i n e x c e s s of t h e a p p l i c a b l e l i m i t o f i n s u ra n c e . An

agreed settlement m e a n s a settlement an d release of liabi lity signed by us , the insured and the

c l a i m a n t o r t h e c l a i mant's l e g a l r e p r e s en t a t i v e .

4 _ Other Ins u r a n c e .

I f o t h e r i n s u r a n c e is a v a i l a b l e t o t he i n s u r e d f o r a l o s s w e c o v e r u n d e r t h i s p o l i c y , t h i s i nsurance is

excess over that o t her i nsuran ce, unless that insu ra n c e i s w r it t e n s p e c i fic a l l y t o a p p l y i n e x c e s s o f

t h e l i mits of Insurance shown i n the Declarat i ons .

When this insurance is excels over other i nsuranc e, we will pay on l y our share of t he amount of the

l o s s , i f any, t h a t e x ceed s t he l , s u m o f :

a . T h e t o t a l a m o u n t t h at MI such o t h er insurance would pay for t he loss in the absence of this

i nsu r a n c e ;

b. T h e t o t a l o f a l l d e d uc t i b l e a n d s e l f - i n s u re d a mounts under al l t h a t o t h e r i n s u r a n c e ; a n d

No t h i n g h e r e i n s h a l l b e c o n strued to make this p o l i c y s u b j e c t t o t h e t e r m s , c o n d i t i o n s a n d l imi t a t i o n so f o t h e r i n s u r a n c e .

5 . PremiumAu d i t .a . W e w i l l c o m p u t e a l l p r e m i u m s fo r t h i s p o l i c y i n a c c o r d a n c e w i t h o u r r u l e s a n d r a t e s .

b . Premium shown in this policy as advance premium is deposit premium only, At the close

of each audit period we ill c omput e the earned premium for that period . Audit premiums are due

and payable on notice to the first Named insured . If the sum of the advance and a udit premiums

p a i d f o r t h e p o l i c y p e r i o d i s g r ea t e r t h a n t h e e a r n e d p r e m i u m , w e w i l l r e t u r n t h e e x c e s s t o t h e f i r s t

Named insured .

c . T h e f i r s t N a m e d I n s Q:red must keep records of the informatio n we need for premium

comput atio n, and send us copi es at such times as we may request

6 . Repr esentations .

B y a c c e p t i n g t h i s p o l i cy , y o u a g r e e :



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the only gamed Insured ; a n d

inst whom clai m i s m a d e o r " s u i t " i s b r o u g h t

. - ~

b . Separately to each I nsured

t _ . !

X S - 6 U 9 1 c ( 0 7 / 0 2 ) R e p r i n t e d i n p a r t w i t p e r m i s s io n o f I n s u r a n c e S e r v ic e s O f f i ce , I n c ., 1998 Page 1 2 of 17

7 . Separatio n of Insured s .

E x c e pt w i t h r e s p e c t t o t h e L i

d u t i e s s pe c i f i c a l l y a s s i g n e d i n

a . As if each Named Insured

o f I n s u r a n c e , t h e a p p l i c a t i o n o f t h e " r e t a i n e d l i m i t " , a n d a n y r i g h t s o r

po l i c y t o t h e f i r s t N a m e d I n s u r e d , t h i s po l i c y a p p l i e s :

8 . Transfer of Rights of Recvveo Against Others to Us .

I f t h e i n s u r e d h a s r i ghts to rec~ver all o r part of any payment we have mad e under this polic y those

r i g h t s a r e t r a n s f e r r e d t o u s . ~ ' h insured must do noth i ng a f t e r t o s s t o I mpai r them . A t o u r r e q u e s t , t h ei n s u r e d w i l l b r i n g " s u i t " o r t r a n s f e r t h o s e r i g h t s t o u s a n d h e l p u s e n f o r c e t h e m .

9 . When We Do Not Ren ew.

If we decid e n o t t o renew this P ol i cy, we will m a i l o r d e l i v e r t o the f i r s t Named Insured shown in theD e c l a r a t i o n s w r i t t e n n o t i c e o f t h( t non renewal no t l e s s than 60 days before the exp i r a t i o n d a t e

I f n o t i c e i s m a i l e d , p r o o f o f m a i l i n g w i l l b e s u f f i c i e n t p r o o f o f n o t i c e .

10 . Cancellation .

a . The first fam ed I nsured shown i n the Declaration s may cancel t h i s p o l i c y b y m a i l i n g o r d e l i v e r i ng t o

u s a d v a n c e w r i t t e n n o t i c e o f c a n c e l l a t i o n .

b . We may cancel this policy' by maili ng or de l i v e r i n g t o t h e f i r s t Named I nsu r ed written not ice ofc a n c e l l a t i o n a t l e a s t :

( 1 ) 10 days before t h e e f f e ct i v e d a t e o f cance[ l a k i a n i f w e ca n cel for nonpayment of premi um; o r(2) 60 d a y s b e f o r e t h e e f f e c t i v e d a t e o f c a n ce l l a t i on if we c a n c e l f o r a n y o t her reason .

c . We may mail or d e l i v e r o u r ' i , n o t i c e t o t h e f i r s t Named I n s u r e d ' s last mail ing address known to us .

d . N o t i c e o f c a n c e l l a t i o n w i l l s t a t e t h e e f f e c t i v e da t e o f c a n c e l l a t i o n . T h e p o l i c y p e r i o d w i l l end on t h a t ~

d a t e .

e . If t h i s p o l i c y i s c a n c e l e d , i r e w i ll s e nd t h e f ir s t Named Insured any prem i um refund dug . I f w ec a n c e l , t h e r e fu n d w i l l b e p ~ o r a t a . I f t h e f i r st N a m e d I n s u r e d c a n c e l s , t h e r e f u n d m a y b e l e s s t h a n

pro r a t a . Th e c a n c e l l a t i o n r l v i i l b e e f f e c t i v e e v e n i f w e h a v e n o t m a d e o r o f f e r e d a r e f u n d .

f. I f no tice is ma iled, proof of r l nailing will be su f f i c i e n t p r o o f o f n o t i c e .

9 1 . Changes.

T h i s p o l i cy c o n t a i n s a l l t h e a g r e q m e n f s b e t w e e n y o u a n d u s c o n c e r n i ng t h e i n s u r a n c e a f f o r d ed . T h e f i r s t

N a m e d I n s u r e d s h o w n i n t h e D e c l a r a t i o n s i s a u t h o r i z e d t o m a k e c h a n g e s i n t h e t e r m s o f t h i s p o l i c y w i t h

o u r c o n s e n t . T h i s p o l i c y ' s t e r m s c a n b e a m e n d e d o r w a i v e d on l y b y endorsement issued by us and

m a d e p a r t o f t h i s p o l i cy .

1 2 . Examinatio n of Your Books an d Records .

We may exami ne and a u d i t you r b o o k s a n d r e c or d s a s t h e y r e l a t e t o t h i s p ol icy a t a n y t i m e d u ri n g t h e

p o l i c y p e r io d a n d u p t o t h r e e y e a r s a f t e r w a r d .

13 . I n s p e c t i o n s a n d S u r v e y s .

We have t h e r i g h t b u t a r e n ot o b l i g a t e d t o :

a . M a k e i n s p ec t i o n s a n d s u r v ey s a t a n y t i m e ;

b . G i v e y o u r e p o r t s o n t h e c o n d i t i o n s w e f i n d ; a n d

c . Recommend c hanges .



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u s , b u t a l s o t o a n y r a t i n g , a d v i s o r y , r a t e s e r v i c e o r s i mi l a r o r g a n i z a t i o n

is, surveys, reports or recommendat ions

1 4 . Premi ums.

( 1 ) The injury or damage arses out of :

( a ) G o o d s o r p r od u c t s m a d e o r s o l d b y y o u i n t h e t e r r i t o r y d e s c ri b e d i n a . above; or

( b ) T h e a c t i v i t i e s o f a p ~ r s o n w h o s e h o m e i s in t h e t e r r i t o r y d e s c r i b e d i n a . a b o v e , b u t i s a w a y

f o r a s h o r t t i m e o n y o u r b u s i n e s s ; a n d

(c) "personal and ad vertisin g injury" offenses that take place through the Internet or similar

electronic means of communi cation .

(2? The insured's responsibilit y to pay damages is d etermined in a "sui t" on the merits, in the

t e r r i t o r y d e s c r i b e d i n a . a b o v e o r i n a s e t t l e m e n t w e a g r e e t o .

XS-6U91c ( 0 7/ 0 2) R ep ri nt e d in p a rt w ii 1 h p er mi ss io n of I ns ur a nc e S er vi ce s Off ic e, I nc ., 1998 Page 13 of 17

` _ 4

A n y i n s p e c t i o n s , s u r v e y s , r e p o r

c ha r ged . We do not make safe

o r ga n i z a t i o n t o provide f o r t h e

c o n d i t i o n s :

a . A r e s a f e o r h e a l t h f u l ,- o r

b . Comply with la ws,

T h i s c o n d i t i o n a p p l i e s n o t o n l y

which makes insuranc e inspec

s or recommendat ions relate only to insurabili ty and the premiums to be

r i n s p e c t i o n s . We do not u ndertake to perform the duty of any person or

health or safety of workers or the publi c . And we do not warrant that

codes or standards .

The first Nam ed Insured shown in the D e c l a r a t i o n s :

a . I s r e s p o n s i b l e f o r the payment o f a l l p r e m iums; a n d

b . W i l l b e t h e p a y e e f o r a n y r e i o rn premium s we pay .

15 . Transfer of Your Rights and Duti es Under This Policy .

Y o u r r i gh t s a n d d u t i e s u n d e r t h i s p o l i c y m a y n o t b e t r a n s f e r r e d wi t h o u t o u r w r i t t e n c o n s e n t e x c e p t i n t h e

case of death of an indiv idual n amed insured .

I f y o u d i e , y o u r r i g h t s a n d d u t i e s w i l l b e t r a n s f e r r e d t o y o u r l e ga l r e p r e s e n t a t i v e b u t o n l y w h i l e a c t i n g

within the scope of duti es as dou r legal representative . U n t i l y o u r l eg a l r e p r e s e n t a t i v e i s a p p o i n t e d ,

anyone havin g proper temporar~ cust ody of your property will have your rights and d uties but o nly with

r e s pe c t t o t h a t p r o p e r t y .

SECTION V - DEFINITIONS

1 . "Advertisement" means a no tice that is broadcast or published to the general public o r specific market

segments about your goods, products or services for the purpose of attracti ng cust omers or supporters .

a . Notices that are published incl ude material placed on t he Internet or on similar electronic m eans of

communication ; a n d

b. Regarding web-sites, only that part of a web-site that i s abou t your go ods, products or services forthe purposes of attracti ng cust omers or supporters is considered an advertisement .

2 . " A u t o " m e a n s a l a n d m o t o r v e h i l e, t r a i l e r o r s e m i t r a i l e r d e s i g n e d f or t r a v e l o n p u b l i c r o a d s , i n c l u d i n g a n y

a t t a c h e d m a c h i n e r y o r e q u i p m e r t . B u t " a u t o " do e s no t i n c lu d e "m o b il e e q u ip m e nt " .

3 . " B o d i l y i n j u r y " m e a n s b o d i l y i n j u r y , s i c k n e s s o r d is e a s e s u s t a i n e d b y a p e r s o n , i n cl u d i n g d e a t h r e s u l t i n g

f r om a n y o f t h e s e a t a n y t i m e .

4. "Coverage territory" means :

a . T h e U n i t e d S t a t e s o f A m e f i co ( i n c l u d in g i t s t e r r i t o r i e s a n d p o s s e s s i o n s ) , P u e r t o R i c o a n d C a n a d a ;

b. I n t e r n a t i o n a l w a t e r s o r a i r s p c e , p ro v i de d t h e i n j u r y o r d a m a g e d o e s n o t o c c u r i n t h e c o u r s e of t r a v e l

o r t r a n s p o r t a t i o n t o o r f r o m a n y p l a c e n o t i n c l u d e d in a . a b o v e ; o r

c . A l l p a r t s o f t h e w o r l d i f :



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rson holdi ng any of the officer position s created by your charter,

s imi lar governing document . ,1

6 . "Executive off i cer" means ac o n s t i t u t i o n , by - l a w s o r a n y o f

7 . "Impaired property" means tan able property, other than "your product ' or "your work", that canno t be

u s e d o r i s l e s s u s e f u l b e c a u s e :

a . It incorporates "your prodi ~c t or "your work" that is known or thought to be defective, deficient,

inadequat e or dangerous ; t r

Paragraph f . d o e s n o t i n c l u a e t h a t p a r t o f a n y c o n t r a c t o r a g r e e m e n t :

T h a t i n d e m ni f i e s a r a i l r o a d f o r " b o d i l y i n j ur y " o r " p r o p e rt y d a m a g e " a r i s i n g o u t o f c o n s t r u c t i o n o r

d e m o l it i o n o p e r a t i o n s , W i t h i n 5 0 f e e t o f a n y r a i l r o a d p r o p e r t y a n d a f f e c t i n g a n y r a i l r o a d b r i d g e o r

t r e s t l e , t r a c k s , r o a d b e d s , t u n n e l , u n de r p a s s o r c r o s s i n g ;

T h a t i n d e m n i f i e s a n a r c h i t e c t , e n g i n e e r o r s u r v e y o r f o r i n j u r y or d a m a g e a r i s i n g o u t o f :

( a ) P r e p a r i n g , a p p r o v i n g o r f a i l i n g t o p r e p a r e o r a p p r o v e m a p s , s h o p d r a w i n g s , o p i n io n s ,

r e p o r t s , s u r v e y s , f i e l d o r d e r s , c h a n g e o r d e r s , o r d r a w i n g s a n d s p e c i f i c a t i o n s o r

( b ) G i v i n g d ir e c t i o n s o r i n s t r u c t i o n s, o r f a i l i n g t o g i v e t h e m , i f t h a t i s t h e p r i m a r y c a u s e o f t h e

injury or damage; or

U n d e r w h i c h t h e i n s u r 6 d , i f a n a r c h i t e c t , e n g i n e e r or s u r v e y o r , a s s u m e s l i a b i l i t y f o r i n j u r y o r

d a m a g e a r i s i n g o u t o f t h e i n s u r e d ' s r e n de r i n g o r f a i l i n g t o r e n d er p r o f e s s i on a l s e r v i ce s , i n c l u d in g

t h o s e l i s t e d i n ( 2 ) a b o v 6 a n d s u p e r v i s o r y , i n s p e c t i o n o r e n g i n e e r i n g s e r vi c e s.

( 3 )

9. "Leased worker" means a person leased t o you by a labo r leasing firm und er an agreement between you

and the labor leasi ng firm, to perform duti es related to the conduc t of your business . "Leased worker"

does not i nclu de a "temporary worker" .

10 . "Loading or unload ing" means tie handl ing of property :

a . A f t e r i t i s mo v e d f r o m t h e pi ~ a c e w h e r e i t i s a c c e p t e d f o r mo v e me n t i n t o o r o n t o a n a i r c r a f t , w a t e r c r a f ~ ' t l

o r " a u t o " . _ ~

XS- 6L 1 91 c ( 0 7 / 0 2 ) R e p r i n t e d i n p a r t w i t h p e r m i s s i on o f I n s u r a n c e S e r v i c e s O f f i c e, I n c , 1998 Page 1 4 of 17

5 . "Employee" includes a " l eased "Employee" does not i nclud e a "temporary worker" .

b . Y o u h a v e f a i l e d t o f u l f i l l t h e t e r m s o f a c o n t r a c t o r a g r e e m e n t ;

i f s u c h p r o pe r t y c a n b e r e s t o r e d t o u s e b y :

a . The repair, replacement, adjustment or removal of "your product" or "your work" ; o r

b. Y o u r f u l f i l l i n g t h e t e r m s o f t i n e c o n t r a c t o r a g r e e m e n t .

8 . " Insured c o n t r a c t " me a n s :a . A contract for a lease of promises . H o w e v e r , t h a t p o r t i o n o f t h e c o n t r a c t f o r a l e a s e o f p r e m i s es t h a t

indemn ifies any person or organi zatio n for damage by fire to premises while rented to you or

temporarily occu pied by yo : u w i t h p e r m i s s i o n o f t h e o w n e r i s n ot a n " i n s u r e d c o nt r a c t " ;

b. A sidet rack agreement ;

c . Any easement o r license agreement, except in connection with construction or demolition operations

o n o r w i t h i n 5 0 f e e t o f a r a i l r o a d ;

d . An obligat ion, as required b y o r d i n a n c e , t o i n d e m n i f y a m u n i c i p a l i t y , e x c e p t i n c o n n e c t i o n w i t h w o r k

f o r a m u n i c i p a l i t y ;

e. An elevato r maintenan ce a~reement ; or

f . That part of any other contract o r agreement pertaining to your business (includi ng an,

indemn ificatio n of a municipal ity in conn ection with work performed for a muni cipali ty) under which

y o u a s s u m e t h e t o r t 4 i a b i l i t ~ o f a n o t h e r p a r t y t o p a y f o r "b o d i l y i n j u r y" o r " p r o p e r t y d a m a g e " t o a t h i r d

person or organization . T o r y l i a b i l i t y m e a n s a l i a b i l i t y t h a t w o u l d b e i m p o s e d b y l a w i n t h e a b s e n c e o f

a n y c o n t r a c t o r a g r e e m en t .

( 1 )

(2)



18/67

a n a i r c r a f t , w a t e r c r a f t o r " a u t o " t o t h e p l a c e w h e r e i t i s f i n a l l y d e l i v e r e d ;c . W h i l e i t i s b e i n g m o v e d

but "loading and unloading" does not include the movement of property by m e a n s of a m e c h a n i c a ld e v i c e , o t h e r than a h a n d t r u c k , t ha t i s n o t a t t a c h e d t o t h e a i r c r a f t , w a t e r c r a f t or " a u t o " .

1 1 . "Mob i le equipment " means any f t h e f o l l o w i n g t y p e s o f l a n d v e h i c l e s, i n c l u d i ng a n y a t t a c h e d machineryor equipmen t :

B . M a l i c i ou s p r o s e c u t i o n ;

T h e w r o n g f u l e v i c t i o n f r o m , w r o n g f u l e n t r y i n t o , o r i n v a s i o n o f t h e r i g h t o f p r i v a t e o c c u p a n c y o f a

r o o m , d w e l l in g o r p r e m i s e s t h a # a p e r s o n o c c u p i es b y o r o n b e ha l f o f i t s o wn e r , l a n d l o r d o r l e s s o r ;

O r a l o r w r i t t e n p ub l i c a t i o n o f i m a t e r i a l t h a t s la n d er s o r l i b e l s a p e r s o n o r o r g a n i z a t i o n o r d i s p a r a g e s a

p e r s o n ' s o r o rg a n i z a t i o n ' s g o a d s , p r o d u c t s o r s er vi ce s ; o r

Or a l o r w r i t t e n p u b l i c a t i o n o f6a t e r i a l t h a t v i o l a t e s a p e r s on ' s r i g h t o f p r i v a c y ;T h e u s e o f a n o t h e r ' s a d v e r t is i n g i d e a i n your " a d v e r t i s e m en t " ; or

I n f r i n g i ng upon a n o t h e r ' s c o p y r i g ht , - t r a d e dr es s or s lo g a n in y ou r " a d v e r t i s e m e n t " .

C .

d .

e .

f .

J

X S - f i U 9 1 c ( 0 7 1 0 2 ) R e p r i n t e d i n p a r t w i t h p e r m i s s i o n o f I n s u r a n c e S e r v i c e s O n c e, i n c ., 1998 Pag e 15 o f 1 7

b . W h i l e i t i s i n o r o n a n wa t e r c r a f t o r " a u t o " ; o r

t ,7

a . B u l l d o z e r s , farm machinery , f o r k l i f t s and ot her veh i c l e s d e s i gn e d f o r u s e p r i n ci p a l l y o f f p u b l i c r o a d s ,

b . Vehicles mainta ined for u se l s o l e l y o n o r n e x t t o premises you own or r e n t - ,

c . V e h i c l e s t h a t t r a v e l o n c r a w l e r t r e a d s ;

c E. Vehi cl es, whether s e l f - p r c i p e l l e d or not, maintained primar i l y t o p r o v i de mobility to permanentlym o u n t e d :

( 1 ) P o w e r c r a n e s , s h o v e l s , l o a d e r s , d i g g e r s o r d r i l l s ; o r

(2) Road co nstru c t i o n o r r e s u r fa c i n g e q u i p m e n t s u c h a s g r a d e r s , s c r a p e r s o r r o l l e r s ;

e . V e h i c l e s n o t d e s c r i b e d i n p . , b . , c . or d . a b o v e t h a t a r e n o t s e l f - p ro p e l l e d a n d a r e m a i n t a i n e d

p r i m a r i l y t o p r o v i de m o b i l i t y t o p e r m a n e n t l y a t t a c h e d e q u i p m e n t o f t h e f o l l o w i ng t y p e s :

(1) Air compressors, pumps and generators, incl uding s praying, welding, buildi ng cleani ng,

g e o p h y s i ca l e x p l o r a f i o n j l i g h t i n g a n d w e l l s e r v i ci n g e q u i p m e n t ; o r

( 2 ) C h e r r y p i c k e r s a n d s i m i l l a r d e v i c e s u s e d t o r a i s e o r l o w e r w o r k e r s ;

L V e h i c l e s n o t d e s c r i b e d i n 4 . , b . , c . o r d . a b o v e m a i n t a i n e d p r i m a r i l y f or p u r p o se s o t h e r t h a n t h e

t r a n s p o r t a t i o n o f p er s o n s o r ca r g o .

However, self-propelled vehicles with the following types of permanently attac hed equipment are not

"mobile equipment" but will be considered "autos" :

(1 ) E q u i p m e n t d e s i g n e d p r i? n a r i l y f o r .

( a ) S n o w r em o v a l

(b) Road mai ntenance, flit not construct ion or resu r f a c i n g ; o r

(c) Street cleani ng

;

(2) Cherry p ickers and sim i lar devices mounted on auto mobile or truck chass i s a n d u s e d t o r a i s e o r

lower workers ; a n d

( 3 ) A i r com pressors, pum ps and generators , i n c l u d i ng spray i n g , we l d i n g, bui l d i n g c l e a n i n g ,g e o p h y s i c a l e x p l o ra t i o n , , l i g h t i n g a n d w e l l s e r v i c i n g e q u i p m e n t .

12. " O c c ur r e n ce " m e a n s a n a c c i d e nt , i n c l u d i n g c o n t i n u o u s o r r ep e a t e d e x p o s u re t o s u b s t a n t i a l l y t h e s a m e

g e n e r a l h a r m f u l c o n d i t i on s .

13. " P e r s o n a l a n d a d v e r t i s i n g i n j ur y " r n e a n s i n j u r y , i n c l u d i ng c o n s e q u e n t i a l " b o d i l y i njury", ar i s i n g o u t of one

or more o f t h e f o l l o w i n g o f f e n s e s :

a. False a r r e s t , d e t e n t i o n o r i m p ri s o n m e n t - ,



19/67

XS-6U91c (07/02) Repr i n t e d i n p a r t w i ~ h p e r m i s s i o n o f i n s u r a n c e S e r v i c e s O f f i c e , I n c . , 1998 P a g e 1 6 o f 1 7

1 4 . " P o l l u t i o n " i n c lu d e s t h e ac t u a l , I leged o r p o t e n t i a l p r e s e n c e i n o r i n t r o d u c t i o n i n t o the environment of

any substan ce if such substance has, or is a l leged t o h a v e , t he effect of making the environm ent impu re,

harmful, or dangerous . E n v i r o n m e n t i n c l u d e s a n y a i r , l a n d , s t r u c t u r e o r t h e a i r t herein, watercourse o r

water, includin g underground water .

15 . " P r o d u c t s - c o m p le t e d o p e r a t i o n h a z a r d "

a . I n c l u d e s a l l " b o d il y i n ju r y " a ~ d "p r o pe r t y d a mage" occurr i ng away from premises you own or rent and

a r i s i n g o u t o f " y o u r p r o d u c Y o r " y o u r work" excep t :

( 1 ) Prod u c t s t h a t a r e s t i l l i n y o u r p h y s i c a l p o s s e s s i o n ; o r

(2) Work that has no t yet been co mpl e t e d o r a b a n d o n e d . However, "your work" wil l b e d e e m e dcomp l e t e d a t t h e e a r l i es t o f t h e fo l lowin g t i mes:

(a) When al l o f t h e e w o r k c a l l ed f or in your contract has been completed .

( b ) When all of the work to be do ne a t t h e s i t e has been comple t e d i f y o u r c o n t r a c t c a l l s f o r w o r k

a t more than one side .

( c ) When th a t p a r t o f t h e w o r k d o n e a t a j o b s it e h a s b e e n p u t t o i t s i n t e n ded use by any person

or organiza t ion other t han another contrac t o r o r s u b c o n t r a c t o r w o r k i n g on the sam e pro j e c t .

Work that may need service, main t enance, correct i on, repair or replacement , but which is

ot h e r w i s e c o m pl e t e , w i l l l b e t r e a t e d a s c o m p l e t e d .

b . D o e s n o t i n c l u d e " b o d i l y i n j u ry " o r " p r o p e rt y d a m a g e " a r i s i n g o u t o f

( 1) The transportation of property, unless the injury or damage arises out of a condit ion in or on a

vehicle not owned or operated by you, and that c ondit ion was created by the "loading or

u n l o a d i n g " o f t h a t v e h i c l e b y a n y i n s u r e d ;

( 2 ) T h e e x i s t e n c e o f t o o l s , t ~ n i n s t a l l e d e q u i p m e n t o r a b a n d o n e d or u n u s e d m a t e r i a l s ; o r

(3 ) P r o d u c t s o r o p e ra t i o n s ' f o r w h i c h t h e c l a s s i f i c a t i o n , l i s t e d i n t h e D ec la r a t i o n s o r i n a p ol ic y

s c h ed u l e, s t a t e s t h a t p r o du c t s o r completed o p e r a t i o n s a r e s u b j e ct t o t h e General Aggregate; - - ~

L i m i t . --7

16 . "Property dam age " m e a n s :

a . Physica l i n j ur y t o t a n g i b l e pr ope r t y , i n c l udi n g a l l r e s u l t i n g l o s s o f u s e o f t h a t p r o per t y . A U s uc h l o s s o f

u s e s h a l l b e d e e m ed t o o c c u r a t t h e t i m e o f t h e p h y s i ca l i n j u r y t h a t c a u s e d i t ; o r

b . L o s s o f u s e o f t a n g i b l e p r o p e r t y t h a t i s n o t p h y s i c a l l y i n j u r e d . A l l s u c h l o s s o f u s e s h a l l b e d e e m e d t o

o c c u r a t t h e t i m e o f t h e " o c c u r r e n c e " t h a t c a u s e d i t .

F o r t h e p u r p o s e s o f t h i s i n s u r a n c e , e l ec t r o n i c d a t a i s n o t t a n g i b l e p r o p e r t y .

A s u s e d i n t h i s d e f i n i t i o n , e l ec t r o n i c d a t a m e a n s i n f o r m a t i o n , f a c t s o r p r o g r a m s s t o r e d a s o r o n , c r e a t e d

o r u s e d o n , o r t r a n s m i t t e d t o a h f r o m c o m p u t e r s o f t w a r e , i n c l u d in g s y s t e m s a n d a p p l i c a t i o n s s o f t w a r e ,

h a r d o r f l o p p y d i s k s , C D - R O M S ' t a p e s , d r i v e s , c el l s , d a t a p r o c e s s i n g d e v i ce s o r

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