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VOORHEES Et Al v. ACE AMERICAN INSURANCE COMPANY Complaint
VOORHEES Et Al v. ACE AMERICAN INSURANCE COMPANY Complaint
Transmittal
TO:
RE:
FOR:
09/11/2015
CT Log Number 527802630
ENCLOSED ARE COPIES OF LEGAL PROCESS RECEIVED BY THE STATUTORY AGENT OF THE ABOVE COMPANY AS FOLLOWS:
TITLE OF ACTION:
DOCUMENT(S) SERVED:
COURT/AGENCY:
NATURE OF ACTION:
C T Corporation System,Madison,WI
JURISDICTION SERVED :
Wisconsin
ATTORNEY(S) / SENDER(S):
Frank R. Terschan
Terschan, Steinle, Hodan & Ganzer, Ltd.
309 North Water Street
Suite 215
Milwaukee,WI53202
414-258-1010
REMARKS:
Please note the process server underlined, circled, initialed and/or highlighted the
entity name served prior to receipt by CT.
ACTION ITEMS:
CT has retained the current log, Retain Date: 09/11/2015, Expected Purge Date:
09/16/2015
Image SOP
Email Notification, Adrienne Logan [email protected]
Email Notification, Marie Morrill [email protected]
Email Notification, Angela Jay [email protected]
SIGNED:
ADDRESS:
TELEPHONE:
C T Corporation System
8020 Excelsior Dr Ste 200
Madison,WI53717-1998
608-833-4821
Page 1 of 1 / AP
Information displayed on this transmittal is for CT
Corporation's record keeping purposes only and is provided to
the recipient for quick reference. This information does not
constitute a legal opinion as to the nature of action, the
amount of damages, the answer date, or any information
contained in the documents themselves. Recipient is
responsible for interpreting said documents and for taking
appropriate action. Signatures on certified mail receipts
confirm receipt of package only, not contents.
MILWAUKEE COUNTY
CIRCUIT COURT
STATE OF WISCONSIN
15CV007217
AUTMTI( ATP1
SEF 03 2015
Plaintiffs,
vs.
JUHN onmnr, 1 I
Case No.
Case Codes: 30303; 30106
Defendant.
SUMMONS
and to Plaintiffs attorney, Frank R. Terschan, whose address is Terschan, Steinle, Hodan
& Ganzer, Ltd., 309 North Water Street, Suite 215, Milwaukee, Wisconsin 53202. You
may have an attorney help or represent you.
If you do not provide a proper answer within forty-five (45) days, the Court may
grant judgment against you for the award of money or other legal action requested in the
Complaint, and you may lose your right to object to anything that is or may be incorrect
in the Complaint. A judgment may be enforced as provided by law. A judgment
awarding money may become a lien against any real estate you own now or in the future,
and may also be enforced by garnishment or seizure of property.
By:
2'.9/f-". ZL
Frank R. Terschan
State Bar No.: 1016256
P.O. ADDRESS:
309 North Water Street, Suite 215
Milwaukee, WI 53202
(414) 258-1010
2
Case 2:15-cv-01193-NJ Filed 10/08/15 Page 3 of 38 Document 1-1
STATE OF WISCONSIN
CIRCUIT COURT
MILWAUKEE COUNTY
I SCV1JOT2 17
AUThPMTI(TP
Plaintiffs,
[SEP03 2015,
JUHiv
i
Clerk of Circuit Coun
vs.
ACE AMERICAN INSURANCE COMPANY
436 Walnut Street
P.O. Box 1000
Philadelphia, PA 19106-3703
do Registered Agent
CT Corporation System
8020 Excelsior Dr Ste 200
Madison, WI 53717
Case No.
Case Codes: 30303; 30106
Defendant.
COMPLAINT
COMES NOW the plaintiffs, Daniel Matthew Voorhees abo M!Y Broadwater and
Broadwater Marine, Ltd., by and through its attorney, Frank R. Terschan, and Terschan,
Steinle, Hodan & Ganzer, Ltd. and as a complaint against the Defendant, ACE American
Insurance Company, allege the following:
PARTIES
1.
2.
with a mailing address on the applicable insurance policy of: Broadwater Marine do
BGC, 500 W Brown Deer Road #101, Milwaukee, WI 53217.
ACE American Insurance Company ("ACE") is an insurance company
with a mailing address listed on its insurance policy as: 436 Walnut Street, P.O. Box
1000, Philadelphia, PA 19106-3703. Upon information and belief, ACE is licensed to
and does insurance business in Wisconsin.
JURISDICTION AND VENUE
Pursuant to Wis. Stat. 801.05, this Court has jurisdiction over ACE
because ACE is a corporation that is engaged in substantial and not isolated activities
within this state, and has sufficient minimum contacts with Wisconsin so as to render the
exercise of jurisdiction by the Wisconsin courts permissible under traditional notions of
fair play and substantial justice.
Venue is proper in this Court pursuant to the venue clause in the
applicable insurance policy, which states that disputes arising under the policy shall be
venued where the policyholder lists its address on the policy declarations page.
GENERAL ALLEGATIONS
This is a dispute over insurance coverage for damages, expenses, and lost
charter income for the yacht M/Y Broadwater.
Plaintiffs purchased from ACE marine insurance policy number YMY
Y09 164510 (the "Policy"), which, among other things, promises to pay for damages to
the yacht, consequential damages, and extra expenses, and to reimburse the owner for lost
2
Case 2:15-cv-01193-NJ Filed 10/08/15 Page 5 of 38 Document 1-1
charter income. A copy of the Policy, as contained in plaintiffs' files, is attached hereto
as Exhibit A.
In April 2014, Plaintiffs purchased a 1990 163 foot Feadship custom yacht
named M/Y Inevitable (renamed M/Y Broadwater) for $9.5 million.
The yacht underwent an extensive pre-purchase survey and sea trial in
March 2014 in Fort Lauderdale, Florida. No engine or power issues were discovered
during the pre-purchase survey and sea trial.
ACE reviewed the pre-purchase survey prior to writing the Policy. During
underwriting of the Policy, ACE issued a Survey Recommendation Compliance
Certification which required that certain repairs be made to the yacht by September 17,
2014.
The Policy took effect on April 17, 2014.
At the time of purchase, the yacht was moored in Nassau, Bahamas. After
plaintiffs took possession of the yacht, it was sailed to Fort Lauderdale, Florida. During
the crossing, the yacht experienced sudden engine and power system failure that resulted
in significant damage to the yacht. Subsequent investigation revealed extensive damage
to the yacht's generators, exhaust, and power systems, rendering the vessel inoperable.
Plaintiffs were under contract to charter the yacht to Millennium Charters
in West Palm Beach, Florida. As a result of the damage, the charter contract, worth
$450,000, was cancelled.
Extensive repairs of the yacht were undertaken over the subsequent year,
at a total cost of nearly $1 million.
3
Case 2:15-cv-01193-NJ Filed 10/08/15 Page 6 of 38 Document 1-1
11
Case 2:15-cv-01193-NJ Filed 10/08/15 Page 7 of 38 Document 1-1
22.
In January 2015, ACE requested more information regarding the loss, and
On July 31, 2015, ACE's counsel wrote a letter stating that ACE would
not participate in arbitration because the request for arbitration was untimely under the
policy, citing the Policy's one-year suit limitation clause. In this letter, ACE also rejected
plaintiffs third Proof of Loss and invited plaintiffs to correct deficiencies in the Proof of
Loss and resubmit another revised Proof of Loss.
CLAIMS FOR RELIEF
COUNT I - BREACH OF CONTRACT
32.
stated herein.
The Policy is a valid and enforceable contract of insurance, for which all
premiums have been paid.
Plaintiffs have performed all of their obligations under the Policy, and any
and all conditions precedent to plaintiffs' rights under that Policy have been satisfied,
waived, or defendant is equitably estopped from relying on them.
Pursuant to the terms and conditions of the Policy, ACE has breached its
obligation to pay plaintiffs for losses they suffered as a result of damage to and loss of
use of MIY Broadwater.
As a direct and proximate result of ACE's breach, plaintiffs have been
deprived the benefits of the insurance coverage for which they paid substantial premiums.
COUNT II EQUITABLE ESTOPPEL
The preceding paragraphs are hereby incorporated and realleged as if fully
stated herein.
rol
Case 2:15-cv-01193-NJ Filed 10/08/15 Page 9 of 38 Document 1-1
7
Case 2:15-cv-01193-NJ Filed 10/08/15 Page 10 of 38 Document 1-1
46.
ACE acted in bad faith towards plaintiffs by stringing plaintiffs along and
by conducting its claim investigation in such a way as to prevent it from learning the true
facts upon which the plaintiffs' claim is based.
ACE knew or should have known that it had no reasonable basis to deny
plaintiffs' claim, and its improper investigation and repeated delay and rejection of
plaintiffs' Proofs of Loss reflect an absence of honest, intelligent action and consideration
of its insureds' claim and reckless disregard for its insureds' rights under the Policy.
Among other things, ACE's bad faith claims handling included the
following violations of Wis. Admin. Code Sec. INS 6.11(3):
Failure to promptly acknowledge pertinent communications with respect to claims
arising under insurance policies;
Failure to initiate and conclude a claims investigation with all reasonable
dispatch;
Failure to promptly provide necessary claims forms, instructions and reasonable
assistance to insureds and claimants under its insurance policies;
Failure to attempt in good faith to effectuate fair and equitable settlement of
claims submitted in which liability has become reasonably clear;
Failure, where appropriate, to make use of arbitration procedures authorized or
permitted under any insurance policy;
Failure to affirm or deny coverage of claims within a reasonable time after proof
of loss has been completed; and
Knowingly misrepresenting to claimants pertinent facts or policy provisions
relating to coverages involved.
49.
have sustained and incurred, and are continuing to incur, substantial damages and
expenses.
50.
and breach of its obligations to plaintiffs, plaintiffs are entitled to recover the full amount
of their damages, including all incidental, consequential and compensable damages,
along with pre and post-judgment interest and attorneys' fees.
RELIEF REQUESTED
WHEREFORE, based upon the forgoing allegations, plaintiffs request that this
Court enter judgment for damages in favor of plaintiffs and against defendant, in an
amount to be determined at trial, but believed to be in excess of $1 million, and award
plaintiffs their reasonable attorneys' fees and costs, along with pre and post-judgment
interest, and any other and further relief the Court deems just, equitable, and proper.
JURY TRIAL DEMANDED
Plaintiffs respectfully request a jury trial on all claims, as well as on each defense
which may be raised by defendant, that are triable to a jury.
Dated at Milwaukee, Wisconsin this
BY7J
Frank R. Terschan
State Bar No.: 1016256
P.O. ADDRESS:
309 North Water Street, Suite 215
Milwaukee, WI 53202
(414) 258-1010
Elite Yacht
Policy
ace. recreational
marine insurance
NEW
Commission
Agency Code, Name & Address
20%
700581
BRUCE GENDELMAN COMPANY INC
500 W. BROWN DEER ROAD
SUITE 101
MILWAUKEE, WI 53217-1627
This is your Elite Yacht Policy's Declarations Page. Please read carefully. It gives you important facts about your coverage.
The Company Providing This Insurance
Broadwater Marine
1801 Pennsylvania Ave, #700
Washington, DC 20006
Address:
AME)
'INEVITABLE'
(YEAR BUILT)
(LENGTH)
(MODEL)
(MAKE)
IMO 1002782
Custom
Feadship
163'
1990
4/17/2015
and end on
4/17/2014
This policy will take effect on
It will begin and end at 12:01 A.M. standard time, at the place where this policy was issued.
In return for the "Total Premium," listed below, we agree to provide the insurance coverages for which a premium is shown in the chart
below.
DEDUCTIBLE
AMOUNT OF
COVERAGE PROVIDED PREMIUM
AMOUNT
INSURANCE
PARTS COVERAGES
52,015
47,500
$
9,500,000
$
$
A Property Damage
0
$
.
$ Not Applicable
Windstorm Deductible
0
0
$
100, 000
$
Commercial Towing & Assistance
$
7,700
0
$
10,000,000
$
$
B Liability Coverage
0
0
$
100,000
$
$
C Medical Payments
0
0
.
$
2,000,000
$
$
D Uninsured Boater
(included
in
"B" if any)
$
$
Statutory
Limits
$
L&HCA
E
$
$
$ Not Covered
F
Trailer
0
0
$
100,000
$
$
G Personal Property
3,150
$
Premium Bearing Endt(s): See Attached Endorsements
TOTAL PREMIUM
62,865
MA-7W74
See Navigation Warranty
LIMITS ON USE:
ALL21101
CC-1E15
M.A-1797lb
MA-4656b MA-7W74a MA-8301g MA-9S87a MA-9S88
ENDORSEMENTS:
MA- 9S89 a
Lay-up Warranty
LOSS PAYEE:
It is warranted the vessel will be laid up for part of the year, the dates are:
To noon:
From noon:
We will make payments for Part A: Property Damage losses to the Assured and
E/\
EXHIBIT
PRODUCER COPY
YMY
Endorsement Number
Broadwater Marine
Policy Number
Policy Period
Y09164510
4/17/2014 TO 4/17/2015
4/17/2014
This insurance does not apply to the extent that trade or economic sanctions or other laws or regulations prohibit us from
providing insurance, including, but not limited to, the payment of claims. All other terms and conditions of the policy remain
unchanged.
Page 1 of I
Named Insured
Endorsement Number
Broadwater Marine
Policy Symbol
Policy Number
Policy Period
YMY
Y09164510
4/17/2014 TO 4/17/2015
4/17/2014
CCIEI5 MS-6084
Endorsement Number
Broadwater Marine
Vessel 1
Policy Symbol
Policy Number
Policy Period
YMY
Y09164510
4/17/2014 TO 4/17/2015
4/17/2014
You agree that your yacht is equipped with a built-in and automatic system of fire extinguishing apparatus, properly installed in the
engine room and maintained in good and efficient working order.
NAVIGATION WARRANTY
Endorsement Number
Vessel 1
Policy Period
4/17/2014 TO 4/17/2015
Policy Symbol
YMY
Policy Number
Y09164510
Vessel 1
Policy Period
4/17/2014 TO 4/17/2015
In consideration of the additional premium of $3,150, and subject to the terms and conditions contained herein, it is
warranted that there shall not be more than (10) crew member(s), including the captain, employed aboard the Insured
Vessel at any one time. The maximum limit of liability for coverage applicable to the Jones Act or under General Maritime
Law, per each accident or Occurrence is $10,000,000., which shall be included within and shall not increase the
AMOUNT OF INSURANCE applicable to PART B: LIABILITY COVERAGE as shown on the Declarations Page or as
modified by endorsement attached to the Policy, if any.
It is further understood and agreed that in the event additional crew are to be employed, you shall give prior notice to this
Company and pay such additional premium as is required. If you fail to give such prior notice and at the time of loss in
respects to crew there is a greater number employed than that which is stated above, the insurance shall respond only in
the proportion that the stated number of crew bears to the number on board at the time of the accident.
MA-8301g (01/12)
ADDENDUM TO
AMERICAN INSTITUTE HULL WAR RISKS
AND STRIKES CLAUSES DECEMBER 1, 1977
(APRIL 1,1984)
Named Insured
Endorsement Number
Broadwater Marine
Vessel 1
Policy Symbol
YMY
Policy Number
Y09164510
Policy Period
4/17/2014 TO 4/17/2015
It is understood and agreed that the American Institute Hull War Risks and Strikes Clauset of December 1, 1977, for attachment to American Institute Hull Clauses
(June 2, 1977), and to which this Addendum is attached are amended as follows:
For the purpose of this Addendum only, line 241 of the American Institute Hull clauses (June 2, 1977) - EXCLUSION (a) - shall be deemed amended by
adding "confiscation or expropriation."
In addition to the risks enumerated in the above described War Risks and Strikes Clauses, the following is added; "7. Confiscation or expropriation."
In the event that the Vessel shall have been the subject of capture, seizure, arrest, restraint, detainment, confiscation or expropriation, and the Assured, by
reason thereof, has lost the free use and disposal of the Vessel for a continuous period of twelve (12) months (even though condemnation has not occurred),
than for the purposes of ascertaining whether the Vessel is a constructive Total Loss, the Assured shall be deemed to have been deprived of the possession of
the Vessel without any likelihood of recovety.
"Restraint" as used in this paragraph 3 shall be deemed to include the inability of the Vessel to sail from any port or place to the high seas because of closure
of the connecting waterway to all vessels of similar size or draft due to blockage of such waterway caused by hostilities or warlike operations.
Clause (1) of the EXCLUSIONS shall be amended to read as follows: 'Capture, seizure, arrest, restraint, detainment, confiscation or expropriation by the
Government of the United States or of the country in which the Vessel is owned or registered."
The Warranty at line 42 shall be amended to read: "Warranted not to abandon in case of capture, seizure, arrest, restraint, detainment, confiscation or
expropriation until after condemnation of the property insured, or, in circumstances set forth in 3. above, after twelve (12) months, whichever first occurs."
The period of fourteen (14) days provided for in subparagraph "D" of the AUTOMATIC TERMrNATION AND CANCELLATION Clauses, shall be
amended to seven (7) days wherever appearing therein.
Authorized Agent
MA-9S89a (12/03)
Named Insured
Endorsement Number
Broadwater Marine
Vessel 1
Policy Symbol
Policy Number
Policy Period
YMY
Y09164510
4/17/2014 TO 4/17/2015
4/17/2014
CCIEI5 r4S-6112
Named Insured
Endorsement Number
Broadwater Marine
Policy Number
Policy Symbol
YNY
Y09164510
Vessel 1
Policy Period
4/17/2014 TO 4/17/2015
4/17/2014
CCIEI5 I4S-29930
AMERICAN INSTITUTE
Hull War Risks and Strikes Clauses
(including Automatic Termination and Cancellation Provisions)
December 1, 1977
Endorsement Number
Broadwater Marine
Named Insured
Policy Symbol
YMY
Vessel 1
Policy Number
Policy Period
Y09164510
4/17/2014 TO 4/17/2015
4/17/2014
0
Effective on the date shown above and in consideration of a premium in the amount of$
this insurance, subject to the exclusions set forth herein, covers only those risks which would be covered by the attached Policy (including collision liability) in the
absence of the WAR, STRIKES AND RELATED EXCLUSIONS clause contained therein but which are excluded thereby and which risks shall be construed as also
including:
I. Any mine, bomb or torpedo not carried as cargo on board the Vessel:
Any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter;
Civil war, revolution, rebellion, insurrection, or civil strife arising therefrom;
Strikes, lockouts, political or labor disturbances, civil commotions, riots, martial law, militaty or usurped power;
Malicious acts or vandalism to the extent only that such risks are not covered by the attached Policy;
Hostilities or warlike operations (whether there be a declaration of war or not) but this paragraph (6) shall not include collision or contact with aircraft,
rockets or similar missiles, or with any fixed or floating object, or stranding, heavy weather, fire or explosion unless caused directly by a hostile act by or
against a belligerent power which act is independent of the nature of the voyage or service which the Vessel concerned or, in the case of a collision, any
other vessel involved therein, is performing. As used herein, "power" includes any authority maintaining naval, military or air forces in association with a
power.
EXCLUSIONS
f:This insurance does not cover any loss, damage or expense caused by, resulting from, or incurred as a consequence of.
a.
Any hostile detonation of any weapon of war described above in paragraph (2);
Outbreak of war (whether there be a declaration of war or not) between any of the following countries: United States of America, United Kingdom, France,
the Union of Soviet Socialist Republics or the People's Republic of China;
C.
Delay or demurrage;
Requisition or preemption;
Arrest, restraint or detainment under customs or quarantine regulations and similar arrests, restraints or de- tainments not arising from actual or impending
hostilities;
Capture, seizure, arrest, restraint, detainment, or confiscation by the Government of the United States or of the country in which the Vessel is owned or
registered.
Page 1 of 2
(Continued)
RETURNS OF PREMIUM
The RETURNS OF PREMIUM clause of the attached Policy is deleted and the following substituted therefore:
'"In the event of an automatic termination or cancellation of this insurance under the provisions of sections A, B, C or D above, or if the Vessel be sold,
pro rata net return of premium will be payable to the Assured, provided always that a Total Loss of the Vessel has not occurred during the currency of
this Policy. In no other event shall there be any return of premium."
THIS INSURANCE SHALL NOT BECOME EFFECTIVE IF, PRIOR TO THE INTENDED TIME OF ITS ATFACHMENT, THERE HAS OCCURRED ANY
EVENT WHICH WOULD HAVE AUTOMATICALLY TERMINATED THIS INSURANCE UNDER THE PROVISIONS OF SECTIONS A, B, OR C HEREOF
HAD THIS INSURANCE ATTACHED PRIOR TO SUCH OCCURRENCE.
Authorized Agent
MA-9S87a (12/03)
Page 2 of 2
Policy Symbol
YMY
Endorsement Number
Broadwater Marine
Vessel 3.
Policy Number
Policy Period
Y09164510
4/17/2014 TO 4/17/2015
4/17/2014
This insurance is also to cover the liability of the assured for Protection and Indemnity Risks excluded from Marine Protection and
Indemnity Policies commonly issued by stock insurance companies in the United States by the following or a substantially similar
F.C. & S. Clause:
"Notwithstanding anything to the contrary contained in this policy, no liability attaches to the company, directly or indirectly, for or
in respect of any loss, damage or expense sustained by reason of any taking of the vessel by requisition or otherwise, civil war,
revolution, rebellion, or insurrection, or civil strife arising therefrom, capture, seizure, arrest, restraint or detainment, or the
consequences thereof or of any attempt thereat; or sustained in consequence of military, naval or air action by force of arms,
including mines and torpedoes or other missiles or engines of war, whether of enemy or friendly origin, or sustained in consequence
of placing the vessel in jeopardy as an act or measure of war taken in the actual process of a military engagement, including
embarking or disembarking troops or material of war in the immediate zone of such engagement; and any such loss, damage and
expense shall be excluded from this policy without regard to whether the Assured's liability therefor is based on negligence or
otherwise, and whether before or after a declaration of war."
This insurance includes liability of the assured arising out of strikes, riots and civil commotions and for contractual repatriation expenses
of any member of the crew as a result of perils excluded by the aforesaid F.C.&S. Clause.
The Underwriters agree to accept the same percentage interest under these clauses as accepted under the Hull War Risks and Strikes
Clauses.
The liability of the Underwriters under these clauses in respect of any one accident or series of accidents arising out of the same casualty
shall be limited to the Amount Insured Hereunder.
Claims for which the Underwriters shall be liable under these clauses shall not be subject to any deduction.
This Protection and Indemnity Insurance shall terminate automatically at the same time as the insurance afforded by the Hull War Risks
and Strikes Clauses and upon the terms and conditions contained in the Automatic Termination and Cancellation provisions of said
Clauses.
Notwithstanding the provisions of Clause F, in the event of loss or shipwrek of the vessel from any cause prior to the natural expiry
time or automatic termination of this policy, this insurance shall continue to cover the liability of the assured to the crew of the insured
vessel, subject to its terms and conditions and at an additional premium if so required by Underwriters, until the crew shall be either
discharged or landed at a port or place to which the owners or charterers are obliged to bring them.
Not withstanding any of the foregoing provisions all liabilities covered by the Second Seamen's form of policy are excluded from this
insurance.
Authorized Agent
Policy Change
0~
ace recreational
marine insurance
POLICY CIIANGZ
Agency Code, Name & Address
Commission
700581
20%
BRUCE GENDELMM4 COMPANY INC
500 W. BROWN DEER ROAD
SUITE 101
MILWAUKEE, WI 53217-1627
This is your Amended Declarations Page. Please review Policy Change Summary MA3 857 for a description of change(s).
The Company Providing This Insurance
ACE AMERICAN IN3URANE COMPANY
436 Walnut Street, P.O. Box 1000
Phjla, PA 19106-3703
1ME)
The Named Insured Under This Policy:
Broadwater Marine
0/0 BGC
Address:
500 W Brown Deer Road. #101
Milwaukee, WI 53217
The Vessel Covered By This Policy
'INEVITABLE'
1990
163'
(MAKE)
(MODEL)
Feadahip
Custom
IMO 1002782
COVERAGE PROVIDED
AMOUNT OF
PARTS COVERACES
A
B
C
D
E
F
U
INSURANCE
Property Damage
9,500,000
$
Windstorm Deductible
Commercial Towing & Assistance
$
100,000
LiabilityCoverage
10,000,000
$
Medical Payments
100,000
$
Uninsured Boater
$
2,000,000
L&1-ICA
$ Statutory Limits
Trailer
$ Not Covered
Personal Property
100 ,000
$
Premium Bearing Endt(s): See Attached Endorsements
DEDUCTIBLE
AMOUNT
$
$
$
$
$
$
$
$
$
NEW ANNUALIZED
PREMIUM
47,500
$
52,015
285,000 $
0
0$
0
0
7,700
$
0$
0
0$
0
$ (included in "B" if any)
S
0$
0.
$
3,150
62
MA-34186 (01/12)
It is warranted the vessel will be laid up for part of the year, the dates are:
From noon:
To noon:
We will make payments for Part A: Property Damage losses to the Assured and
PRODUCER COPY
1,3
This is your Policy Change Summary page. Please read carefully. It reflects recent policy change activity to your policy.
The Named Insured Under This Policy:
(NAME)
Broadwater Marine
BGC
500 W Brown beer Road #101
Milwaukee, WI 53217
do
Address:
Description of Change
It is hereby understood and agreed the insured's address has been amended to:
d/O BGC
500 W Brown Deer Road, #101
Milwaukee, WI 53217
MA-3857h (06/12)
PRODUCER COPY
11 3
Page I of I
:VA,O.
ace recreational
marine insurance
MA-17971b (01/13)
Page 1 of 11
include money, jewelry, furs, traveler's checks or any other valuable papers or documents. Personal
Property does not include any items or equipment contained within the definition of Insured Vessel.
Personal Watercraft is defined as a vessel powered by internal water jet propulsion, less than thirteen (13)
feet in length which the operator sits upon or stands astride and is commonly referred to as a wave runner or
jet ski.
Property Damage means accidental, direct physical loss or damage to tangible property arising from an
Occurrence. Tangible property does not include money, stocks, bonds, deeds, mortgages, or other
instruments of a similar nature.
Pollution means Property Damage, clean up costs or containment expenses imposed by any federal, state,
or local statutes or regulation or reasonably incurred by you arising out of the sudden and accidental
discharge, spillage, leakage or emission of waste, oil, fuel, petroleum or chemical products.
Resident Relative means a person who at the time of an Occurrence is related by blood, marriage, civil
union or adoption to the named insured, spouse or domestic partner, and who resides in the named
insured's household, even if temporarily living somewhere else. Resident Relative includes any ward or
foster child who usually resides within the named insured's household.
Total Loss means the Insured Vessel shown on the Declarations Page is completely lost or destroyed.
Tropical Depressions, Tropical Storms and Hurricanes are defined as those so designated by the
National Weather Service and/or the National Hurricane Center.
Uninsured Boater and Uninsured Owner-Operator means any owner or operator of a vessel, other than an
Insured Vessel covered by this policy, who is legally responsible for an Occurrence and:
to whom no liability policy affords coverage; or
who cannot be identified, such as a hit-and-run operator.
Page 2 of 11
BOTTOM INSPECTION COVERAGE: In the event of grounding, stranding or striking a submerged object by
the Insured Vessel, we will pay the reasonable cost for an inspection of the bottom of the Insured Vessel within
fifteen (15) days after an Occurrence, even if no damage is found. There is no deductible for this coverage.
DEDUCTIBLE AMOUNT: We will adjust each claim separately for a covered loss to the Insured Vessel. The
amount of each adjusted claim will be automatically reduced by the Deductible Amount shown on the
Declarations Page. For deductible purposes, we will treat two (2) or more covered losses resulting from the same
Occurrence as one (1) claim.
DEDUCTIBLE WAIVER: If the amount of the adjusted claim exceeds the Deductible Amount shown on the
Declarations Page, no deductible will be applied.
DEDUCTIBLE FREE ITEMS: No deductible shall be applied in the event of a covered loss to any of the
following items:
Navigation and Communication Equipment;
Dinghy/Tender;
Personal Watercraft;
trailer used exclusively for transporting your Dinghy/Tender or Personal Watercraft.
LOSS SETTLEMENT: In the event of loss or damage to the Insured Vessel, we will pay the lowest of the
following amounts:
the PART A: PROPERTY DAMAGE COVERAGE, AMOUNT OF INSURANCE, shown on the
Declarations Page; or
the cost to repair; or
the cost of replacement with no deduction for depreciation, except as specified in the Property Subject to
Depreciation provision of this coverage part.
We will pay the PART A: PROPERTY DAMAGE COVERAGE, AMOUNT OF INSURANCE, shown on the
Declarations Page, only if the Insured Vessel:
is a Total Loss; or
a Constructive Total Loss.
The cost of repairs shall be determined by repair yards, equipment repairers or surveyors agreeable to us. The
amount we will pay for a Total Loss or Constructive Total Loss shall be reduced by the amount paid for repairs
of prior covered damage not completed at the time of the Total Loss or Constructive Total Loss.
PROPERTY SUBJECT TO DEPRECIATION: In the event of loss or damage to your Insured Vessel's:
sails, dodgers, plastic or canvas coverings inclusive of all-weather bridge and cockpit enclosures which
are over five (5) years old;
trailers which are over five (5) years old and used exclusively for towing your Dinghy/Tender or
Personal Watercraft; or
outboard motors or outdrive units which are over seven (7) years old.
We will pay the lowest of:
the cost to repair;
the cost of replacement; or
the actual cash value at the time of loss, which is defined herein as replacement cost less depreciation.
However, with respect to the items specified above, in no event shall the depreciated value be less than
20% of the replacement cost of that item.
COMMERCIAL TOWING AND ASSISTANCE COVERAGE: We will reimburse you for the reasonable
costs you incur resulting from the following services to the Insured Vessel or boat trailer covered by this Policy if
voluntary help is not available and you must obtain commercial assistance:
towing to the nearest place where necessary repairs can be made;
delivery of fuel, oil, parts or loaned battery (excluding the cost of these items themselves);
emergency labor at the site of disablement.
The amount we reimburse you shall not exceed the Commercial Towing and Assistance, Amount Of Insurance,
shown on the Declarations Page. The Commercial Towing and Assistance Coverage provided herein shall be
excess over all other valid or collectible towing assistance benefits applicable to the Insured Vessel. To the
extent this provision conflicts with the Other Insurance provision under GENERAL PROVISIONS IN THE EVENT
OF LOSS, the language herein shall apply to this Commercial Towing and Assistance Coverage.
The Commercial Towing and Assistance Coverage provided herein is not subject to the PART A: PROPERTY
DAMAGE COVERAGE, DEDUCTIBLE AMOUNT.
MA-17971b (01/1 3)
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II
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RENTAL REIMBURSEMENT COVERAGE: In the event that a covered loss under PART A: PROPERTY
DAMAGE COVERAGE renders the Insured Vessel unusable for a period of time in excess of seventy-two (72)
hours, we will pay up to $150,000, in the aggregate during any one (1) Policy Period, for the cost of chartering
another vessel for your use while the Insured Vessel is being repaired.
Should we make any payment for Rental Reimbursement Coverage there shall be no payment by us arising out
of the same Occurrence for Loss of Charter Income Coverage. This coverage is in addition to amounts we will
pay under PART A: PROPERTY DAMAGE COVERAGE; however, this coverage will not apply if the Insured
Vessel is a Total Loss or Constructive Total Loss.
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the Insured Vessel. Any payment hereunder shall be in addition to the PART B: LIABILITY COVERAGE,
AMOUNT OF INSURANCE, shown on the Declarations Page.
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MA-17971b (01/13)
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Insured Vessel is being chartered for private pleasure purposes. The person or entity chartering the Insured
Vessel is included as a Covered Person.
LIMITS ON USE: Unless we have provided you with prior written authorization to deviate from the navigation
limit stated on the Declarations Page, no coverage exists under this Policy for any claim, suit, loss, damage,
expense, liability or Occurrence where the Insured Vessel is navigated, afloat, operated, used, stored, ashore,
on land, in transit, transported or otherwise located outside the navigation limit specified on the Declarations
Page.
However, if the Navigation Warranty included in this Policy, or the Lay-Up Warranty shown on the Declarations
Page, is breached due to matters beyond your or a Covered Person's control, the Policy will remain in effect, but
only if you give us written notice of the breach within ten (10) days after the breach and pay any additional
premiums due for this extension of coverage.
WAR, CONFISCATION AND CONTAMINATION: We do not provide any coverage for loss, damage, liability
or expense due to:
war, including undeclared war, civil war, insurrection, rebellion, revolution, warlike act by military force or
military personnel, destruction or seizure for military purpose and including any consequence of these;
the lawful or unlawful capture, seizure, confiscation, requisition or detainment of the Insured Vessel by a
civil or military authority or an attempt at any of these;
radioactive, chemical, biological, bio-chemical or electromagnetic contamination.
TERRORISM EXCLUSION: We do not provide coverage for any loss, damage or expense from a certified act
of terrorism. For the purpose of this clause, "certified act of terrorism" is defined as any act of terrorism as defined
in the U.S. Federal Terrorism Risk Insurance Act of 2002, as amended by the Terrorism Risk Insurance Program
Reauthorization Act of 2007 and its amendments.
CONCEALMENT, MISREPRESENTATION OR FRAUD: All coverage provided by us will be voided from
the beginning of the Policy Period in any case of fraud by you. It is also void if you intentionally conceal or
misrepresent any material fact or circumstance relating to this contract of insurance, or the application for such
insurance, whether before or after a loss.
DISHONEST, ILLEGAL OR INTENTIONAL ACTS: We do not pay for loss or damage caused by the
dishonest, illegal or intentional acts of any Covered Person or any person to whom the Insured Vessel is
entrusted, regardless of whether or not such person is convicted of such an act by a criminal court. However, we
do provide coverage for you as long as you or a Resident Relative were not directly or indirectly involved in the
dishonest, illegal or intentional act.
NO BENEFIT TO OTHERS: No person or organization, which has custody of the Insured Vessel and is to be
paid for services, will benefit from this insurance.
TRANSFER OF INTEREST: All coverage provided by us will terminate upon the sale, assignment, transfer or
pledge of the Insured Vessel or of this Policy unless prior written consent has been obtained from us.
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of naming attorneys to represent the Covered Person. Payments by us for the cost of legal defense of the
Covered Person will be in addition to payments we make under PART B: LIABILITY COVERAGE for liability
claims against the Covered Person. This coverage does not increase our per Occurrence limit of liability and
we will pay no more than the PART B: LIABILITY COVERAGE, AMOUNT OF INSURANCE, shown on the
Declarations Page. Once the PART B: LIABILITY COVERAGE, AMOUNT OF INSURANCE has been exhausted
by payment for liability by us, we shall no longer pay defense costs for any claim or suit against a Covered
Person.
CAPTAIN/CREW DEFENSE: We will defend the captain and paid crew as co-defendants with you, if
necessary, for any suit brought against you, the Insured Vessel and/or paid captain/crew for liability arising out
of the operation of the Insured Vessel that may be covered under this Policy. This coverage does not increase
our per Occurrence limit of liability and we will pay no more than the PART B: LIABILITY COVERAGE,
AMOUNT OF INSURANCE, shown on the Declarations Page. Once the PART B: LIABILITY COVERAGE,
AMOUNT OF INSURANCE has been exhausted by payment for liability by us, we shall no longer pay defense
costs for any claim or suit against the captain and paid crew.
SUIT AGAINST US: You may not bring a suit against us unless you have complied with all terms and
conditions of this Policy. In addition:
with respect to any claim or loss to the Insured Vessel, any suit against us must commence within one
(1) year of the date of loss or damage;
with respect to any other claim for loss, no suit may be brought against us until the amount of the
Covered Person's obligation to pay has been determined by final judgments after trial or by written
agreement signed by you, us and the claimant; any such legal action against us must commence within
one (1) year of the date of judgment or written agreement;
no one shall have any right to join us as a party to any action against a Covered Person;
if any time limitations of this Policy are prohibited or invalid under applicable law, then legal action against
us must commence within the shortest limitation of time permitted by applicable law.
ARBITRATION: Any controversy or claim, whether based on contract, tort, statute or other legal or equitable
theory (including but not limited to any claim of fraud, misrepresentation or fraudulent inducement, arising out of
or related to this Policy, the interpretation, enforcement, or breach thereof, or the handling of any claim involving
this Policy, shall be referred to and settled by arbitration in accordance with the then current CPR Institute for
Dispute Resolution Rules for Non-Administered Arbitration and this provision. The arbitration shall be governed by
the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, implemented at 9 U.S.C. 201208, or if said Convention shall be held not to be applicable, by the United States Arbitration Act, 9 U.S.C. 116, to the exclusion of any provision of state or other law inconsistent therewith or which would produce a different
result, and judgment upon the award rendered by the arbitrator may be entered by any court having jurisdiction.
The arbitration shall be held in the State appearing in your address as contained upon the Declarations Page and
in accordance with the following procedure:
You and we will agree on a single arbitrator to decide the dispute, whose fee will be paid fifty percent
(50%) by you and us;
If you and we are unable to agree on a single arbitrator, you and we will each appoint an arbitrator and
those two (2) arbitrators will appoint a third arbitrator. The three (3) arbitrators will decide the dispute by a
majority vote. You will pay the fee of the arbitrator that you appoint. We will pay the fee of the arbitrator
that we appoint. You and we will each pay fifty percent (50%) of the fee charged by the third arbitrator.
You and we will each pay fifty percent (50%) of the fee charged by the American Arbitration Association
to coordinate the arbitration.
The request for arbitration must be filed within one (1) year of the date of loss or damage; and
We may arbitrate the amount of your loss or damage without waiving our right to determine coverage or
a lack of coverage for the loss.
NOTICE OF LOSS: You must report in writing to us, or our authorized agent, as soon as possible after an
Occurrence that may be covered under this Policy. This notice should state when, where and how the event
occurred, and should include the names and addresses of any witnesses. You are also required to notify the
police and file a police report as soon as you are aware that your property has been stolen, vandalized or there is
a mysterious disappearance. If you do not provide the notice to us as required by this section as soon as
possible, any claim under this Policy will be voided.
PROOF OF LOSS: You must file with us or our authorized agent, as soon as possible after our written
request, a detailed proof-of-loss signed and sworn to by you setting forth to the best of your knowledge, the facts
of the loss. We may also require you to submit to examinations under oath. See PART C: MEDICAL PAYMENTS
COVERAGE for special proof-of-loss requirements for medical payments claims.
MA-17971b (01/13)
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PAYMENT OF LOSS: We will pay for any claim of covered Property Damage you incur under this Policy to
the named insured and any loss payee, as shown on the Declarations Page, within thirty (30) days after:
receiving a signed sworn proof of loss statement or masters protest, receiving a release of liability; and
proof of your interest in the Insured Vessel is given to us; and
reaching an agreement with you; or
the entry of final judgment; or
the filing of an arbitration award with us.
However:
we will not pay a loss that has been paid by others;
should a covered loss to the Insured Vessel result in a Total Loss or Constructive Total Loss, the
Policy premium shall be paid in full prior to the final claim payment; and
the loss payee's rights are no greater than those of the named insured under this contract.
OUR RIGHT TO RECOVER: If any person or organization to or for whom we make payment under this Policy
has rights to recover damages from another, those rights are transferred to us. That person or organization must
do everything necessary to secure our rights and must do nothing to impair them. Any recovery made by us shall
be first applied up to the amount we paid and then the remainder, if any, to you and we shall be entitled to said
payment, recovery, reimbursement or subrogation regardless of whether the total amount of the recovery
received by you on account of an Occurrence covered by this Policy is less than the actual loss or damaged
sustained by you.
We will not waive our rights to recover against any person or entity for their liability for any loss to the Insured
Vessel except a yacht club, marina or similar facility for the purpose of storage or slip rental which requires waiver
of subrogation by written contract entered into by you prior to the date of an Occurrence but only to the extent of
said waiver.
RIGHT TO SALVAGE: If we pay a Total Loss or a Constructive Total Loss of the Insured Vessel, we may,
but are not obligated to, take possession of the remains or its proceeds. If we take possession of the Insured
Vessel, you agree to transfer title of that property to us or any persons or party designated by us.
ABANDONMENT: If we take any steps to protect damaged property, this does not mean we are accepting an
abandonment of the property. And, if you take steps to protect damaged property, this does not mean you are
waiving any rights you have to abandon the property.
OTHER INSURANCE: If any Covered Person has any other valid and collectible insurance against a Property
Damage loss covered under this Policy, we will not pay for any greater proportion of the loss than our applicable
Amount Of Insurance shown on the Declarations Page bears to the total Amount Of Insurance covering the loss.
With respect to a liability, medical payments and/or Uninsured Boater loss, any insurance provided by this
contract shall be deemed excess over all other valid and collectible insurance.
SIGNATURES
The only signatures applicable to this Policy are those representing the company named on the
Declarations Page.
5:
51~
0.. L LUPICA, President
www.acemarineinsurance.com
MA-17971b (01/13)
ace recreational
marine insurance
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