ACE AMERICAN INSURANCE COMPANY v. M-I, L.L.C. Complaint
ACE AMERICAN INSURANCE COMPANY v. M-I, L.L.C. Complaint
This Complaint for Declaratory Judgment is filed by ACE American Insurance Company
("ACE") against M-I, L.L.C. ("M-I") pursuant to the Declaratory Judgment Act, 28 U.S.C. $
2201 and Rule 57 of the Federal Rules of Civil Procedure to determine an actual case or
controversy involving a declaration of rights and obligations under an insurance policy issued by
ACE to M-I.
I. INrRonucrroN
1 .1 This dispute arises out of the Macondo Discovery Well blowout in the Mississippi
Canyon Block 252 and ensuing fire, explosion and sinking of the vessel known as the Deepwater
1.2 At the time of the Deepwater Honzon Incident, M-I was performing mud
engineering activities within the Macondo Discovery V/ell pursuant to a written contract between
1.3 M-I contends that it has incurred, and may continue to incur in the future,
significant liabilities in connection with the Deepwater Honzon Incident. These liabilities
Case 4:10-cv-02931 Document 1 Filed in TXSD on 08/16/10 Page 2 of 14
include, but are not limited to, liabilities for damages to individuals and businesses whose
persons or properties have been or will be impacted by the Deepwater Horizon lncident.
1.4 M-I is pursuing or intends to pursue coverage for the claims and losses arising out
of the Deepwater Horizon lncident under ACE Policy No. HDO G 24940354 (Ihe "ACE
Policy'').
1.5 ACE is seeking a judgment declaring that no coverage exists under the ACE
Policy for any claims against M-I arising out of the Deepwater Horizon Incident.
il. PtRrms
2.1 Plaintiff ACE is a Pennsylvania corporation with its headquarters at 436 Walnut
2.2 Defendant M-I is a Delaware limited liability company with its principal place of
business in Houston, Harris County, Texas. It can be served through its registered agent: Capitol
Corporate Services, Inc., 800 Brazos, Suite 400, Austin, Texas 78701.
III. JurusorcrroNaNoVnNun
3.1 This Court has jurisdiction of this controversy under 28 U.S.C. g 1332 (a) in that
the dispute is between citizens of different states and the amount in controversy exceeds the sum
3.2 Venue is proper in this district pursuant to 28 U.S.C. $ 1391 because this is a
judicial district in which the Defendant is subject to personal jurisdiction and because the policy
IV. BacxcnouNo
with a written contract entitled "Contract for Gulf of Mexico Strategic Performance Unit
Case 4:10-cv-02931 Document 1 Filed in TXSD on 08/16/10 Page 3 of 14
Offshore Well Services between BP Exploration and Production, Inc. and M-I, L.L.C. (the
"BP/M-I Agreement").
4.2 The services under the BP/M-I Agreement included, among other things, that M-I
devise and prepare a mud program for the Macondo Discovery V/ell.
4.3 On or about April 19, 2010, the Macondo Discovery Well had reached a depth of
4.5 Gas escaped from the subsea well and into the riser. The gas shot water out of the
riser and above the crown of the derrick. The gas subsequently ignited and exploded resulting in
4.6 As a result of the Deepwater Horizon lncident, numerous lawsuits have been filed
against M-I alleging that it failed to maintain the appropriate drilling mud weight before and
during the drilling operation of the Macondo Discovery Well. These lawsuits include, but are not
limited to, allegations of liabilities for damages to individuals and businesses (collectively the
"Complaints").
5. I The ACE Policy issued to M-I has a policy period of April | , 2010 through April
I,2071. The coverage afforded under the ACE Policy is subject to certain terms, conditions,
5.2 The ACE Policy contains an Aircraft, Auto Or Watercraft Exclusion (the
"Watercraft Exclusion") that operates to exclude coverage for all claims arising out of the
5.3 The Complaints asserted against M-I contain allegations that the Deepwater
5.4 BP is an additional insured under the ACE Policy by virrue of the terms,
conditions, and limitations contained in the BP/M-I Agreement and in accordance with the terms
5.5 Pursuant to Articles 20.I and 20.2 of the BP/M-I Agreement, M-I agreed to
purchase certain types of insurance coverage, including Commercial General Liability Insurance.
5.6 The ACE Policy provides Commercial General Liability Insurance, and the
contractual requirement under the BP/M-I Agreement for extension of additional insured status
for BP is addressed in Endorsement #18. See Ex. A Endorsement #18 of the ACE Policy is
SCHEDULE
Name of Additional Insured Person(s) Or Organization(s)
Any person or organization whom you [M-I] have agreed to
include as an additional insured under a written contract, provided
such contract was executed prior to the date of loss.
5.7 Because BP is an additional insured under the ACE Policy, the Watercraft
Exclusion operates to exclude coverage under the ACE Policy for all losses arising out of the
Deepwater Horizon Incident. The Watercraft Exclusion provides, in pertinent part, as follows:
This exclusion applies even if the claims against an)¡ insured allege
negligence or other wrongdoing in the supervision, hiring,
employrnent, training or monitoring of others by that insured, if the
"occurrence" which caused the "bodily injury" or "property
damage" involved the ownership, maintenance, use or entrustment
to others of any . .watercraft that is owned or operated by or
rented or loaned to an)¡ insured.
(1)
(3)
(s)
Ex. A at Exclusion G. in "2. Exclusions" of Section l-Coverages, Coverage A Bodily Injury and
5.8 The Watercraft Exclusion references the phrase "any insured" under the ACE
5.9 Thus, if any insured meets the parameters of the Watercraft Exclusion, it will
operate to exclude coverage for all insureds under the ACE Policy.
5.10 As noted above, BP qualifies as an additional insured under the ACE Policy.
5.11 BP was leasing and using the Deepwater Horizon under a charter agreement with
5.12 The Deepwater Horizon was 396 feet long and 256 feet wide.
5.13 The Watercraft Exclusion operates to exclude coverage for all insureds under the
ACE Policy.
5.14 The ACE Policy also contains exclusions entitled "Professional Liability
5.15 Endorsement #15 provides that "[t]his insurance does not apply to any damages
arising out of any professional services, including, but not limited to, any accounting,
5.11 M-I was engaged by BP to provide mud engineering activities and services.
5.18 The mud engineering activities and services are engineering activities and
services that trigger application of the Professional Services Exclusions as a result of the
Deepwater Horizon Incident, thus abrogating coverage under the ACE Policy.
5.19 The ACE Policy also contains a condition entitled "Duties in the Event of
Occurrence, Offense, Claim or Suit" (the "Duties of the Insured Condition") that may operate to
exclude coverage for all claims arising out of the Deepwater Horizon lncident. Ex. A, ACE
Policy at Condition2.d., "Duties in the Event of Occurrence, Offense, Claim or Suit," Section IV
5.21 The Deepwater Honzon Incident has also resulted in pollution from the reservoir
5.22 As noted above, the BP/M-I Agreement expressly provides that BP will assume
(a) loss or damage to any well or hole (including the cost to re-
drill);
(b) blowout, fire, explosion, cratering, or any uncontrolled well
condition (including the costs to control a wild well and the
removal of debris);
(c) damage to any reservoir, aquifer, geological formation or
strata or the loss of oil or gas therefrom;
(d) ::l"t*o"nd
Articles ß.a@) and 19.6 of the BP/M-I Agreement.
5.23 As a result of Articles T9.a@) and 19.6 of the BP/M-I Agreement, M-I is entitled
5.24 In spite of this indemnity M-I has not tendered these claims to BP for
indemnification as contemplated by Articles 19.a@) and 19.6 of the BP/M-I Agreement. This
indemnification from BP as contemplated by Articles 19.a@) and 19.6 of the BP/M-I Agreement,
such an election constitutes a voluntary payrnent of these costs. The ACE Policy prohibits any
voluntary assumption of an obligation by M-I, as well as any voluntary pa).rnents, if any, that
Ex. A, ACE Policy at Condition 2.d., "Duties in the Event of Occurrence, Offense, Claim or
5.26 ACE has not been asked to consent to, nor has it consented to, any assumption of
an obligation or to these payrnents; rather, ACE has encouraged M-I to tender these claims to
BP. As a result of M-I's unilateral decision declining to tender these claims to BP, M-I has
violated the Duties of the Insured Condition of the ACE Policy, and ACE has been prejudiced
thereby. Therefore, M-I's actions have obviated coverage under the ACE Policy.
5.27 The ACE Policy also contains an exclusion entitled "Pollution Exclusion-
Combination Exception Time Element and Named Perils" found in Endorsement # 14 (the
"Pollution Exclusion").
5.28 The Pollution Exclusion provides that ACE has no duty to defend M-I against any
and all pollution claims arising out of the Deepwater Horizon Incident. Ex. A, Endorsement 14.
5.29 The last line of the Pollution Exclusion states: "[n]otwithstanding the foregoing,
we shall have no duty to defend any 'suit', claim or proceeding arising out of or in any way
related to 'pollution'." Id. The Pollution Exclusion defines the terms "Pollution" and
"Pollutants" as follows:
Id.
Case 4:10-cv-02931 Document 1 Filed in TXSD on 08/16/10 Page 10 of 14
5.30 Crude oil, methane, and other discharges from the Macondo Discovery Well in
the Mississippi Canyon Block 252 fall within the definition of "pollutants" under the Pollution
Exclusion.1d.
5.31 The discharges are solid, liquid, or gaseous, and the substances discharged are
irritants or contaminants. The presence of these discharges in the "environment" - in the ocean
and atmosphere and on the seabed - makes the "environment impure, harmful or dangerous." Id.
5.32 The fact that these pollutants were discharged into the environment and have
made the environment "impure, harmful, or dangerous" establishes that their presence in or
5.33 Consequently, ACE has no duty to defend any lawsuit, claim or proceeding
arising out of or in any way related to the pollution from the Deepwater Horizon Incident.
5.35 M-l's operations for the Macondo Discovery Well were subsurface in nature.
Accordingly, no coverage is afforded under the ACE Policy for any claims against M-I arising
out of the Deepwater lF,lnzon Incident for loss of, damage to or loss of use of any property
resulting from the subsurface operations of M-I, whether on or in proximity to the Deepwater
10
Case 4:10-cv-02931 Document 1 Filed in TXSD on 08/16/10 Page 11 of 14
Horizon vessel and Macondo Discovery Well or any property damage occurring away from the
5.36 Further, the ACE Policy will not apply to any claims against M-I arising out of
the Deepw ater Hoizon Incident for any loss of, damage to or loss of use of property directly or
indirectly resulting from removal of, loss or damage to subsurface oil, gas or other substance.
5.37 The ACE Policy will therefore not respond to any property damage claims against
M-I arising out of the Deepwater Horizon Incident. Any coverage for such claims is barred by
5.38 The ACE Policy does not afford any coverage for Coverage C Medical Payments.
See Ex. A at Endorsement #26, entitled, "Exclusion - Coverage C - Medical Payments." Thus,
in the event that M-I tenders such claims to ACE under the ACE Policy, ACE has no obligation
herein.
6.2 On June 8, 2010, M-I presented ACE with correspondence regarding claims or
suits against M-I. This correspondence presents an actual and existing controversy between ACE
and M-I with respect to the existence and scope of any obligations of ACE in connection with
M-I's liabilities emanating from the Deepwater Horizon Incident. The ACE Policy, however,
does not respond to any claim or suit arising out of the Deepwater Horizon Incident.
6.3 Pursuant to the Declaratory Judgment Act,28 U.S.C. 5 2201-2202, ACE seeks a
judicial declaration of its rights and duties to M-I, if any, under the ACE Policy in connection
with M-I's liabilities related to the Deepwater Horizon Incident. The Court's declaration will
11
Case 4:10-cv-02931 Document 1 Filed in TXSD on 08/16/10 Page 12 of 14
provide the parties with certainty with respect to their rights and obligations under the ACE
t2
Case 4:10-cv-02931 Document 1 Filed in TXSD on 08/16/10 Page 13 of 14
3. M-I has elected not to tender any and all claims arising
out of the Deepwater Horizon Incident to BP;
D. ACE has no duty to defend M-I against any and all pollution
claims arising out of or in any way related to the Deepwater
Horizon Incident;
H. M-I is not entitled to coverage under the ACE Policy for any of
M-I's liabilities related to the Deepwater Horizon Incident.
6.5 ACE pleads all other conditions, terms, limitations, definitions and exclusions
contained in the ACE Policy, which may be found to be applicable, and ACE specifically
reserves the right to amend this Complaint for Declaratory Judgment as additional andlor more
1.1 Pursuant to Chapter 38 and Section 37.009 of the Texas Civil Practice and
Remedies Code and 28 U.S.C. ç 2202, ACE requests recovery of its attomeys' fees and costs.
13
Case 4:10-cv-02931 Document 1 Filed in TXSD on 08/16/10 Page 14 of 14
VIII. Pn¡ræn
8.1 ACE American Insurance Company prays for declaratory judgment in its favor
confirming that it has no duty to defend and no duty to indemnify M-I, L.L.C. under Policy No.
HDO G 24940354 (the "ACE Policy") for any claims against M-I, L.L.C. arising out of the
Deepwater Horizon Incident, and further prays for all such other and further relief as equity and
Respectfully submitted,
BROWN SIMS, PC
T4
Case 4:10-cv-02931 Document 1-1 Filed in TXSD on 08/16/10 Page 1 of 57
EXHIBIT A
Part 1 of 2
Case 4:10-cv-02931 Document 1-1 Filed in TXSD on 08/16/10 Page 2 of 57
1#
\ffi
SM
POLICY IDENTIFICATION
FORMSANDENDORSEMENTS (Pase 1 of 3)
Description .'
the coverage form(s) and endorsements, if any, listed above and attached, completes this policy.
AUTHORIZED AGENT:
Authorized
cc-lE15 Ptd. h u.s.A.
Case 4:10-cv-02931 Document 1-1 Filed in TXSD on 08/16/10 Page 5 of 57
Authorized
CC-lEl5 Ptd. In U.S.A.
Case 4:10-cv-02931 Document 1-1 Filed in TXSD on 08/16/10 Page 6 of 57
INFORMATION WE COLLECT
The information we collect will vary depending on the type of product or service individuals
seek or purchase, and may include: ' ,",i
. lnformation we receive from individuals, such as their name,i "address, age, phone
number, social security number, assets, income, or beneficiaries;
. lnformation about individuals' transactions with us, with our affiliates, or with others,
such as policy coverage, premium, payment history, motor vehicle records; and
. lnformation we receive from a consumer reporting agency, such as a credit history.
INFORMATION WE DISCLOSE
We may disclose any of the information that we collect to companies that perform marketing
services on our behalf or to other. fi¡rancial institutions with whom we have joint marketing
agreements.
Keeping information accurate and up to date is important to us. lndividuals may see and
correct their personal information that we collect except for information relating to a claim or a
criminal or civil proceeding.
CONTACTING US
lf you have any questions about this privacy statement or would like to learn more about how
we protect privacy, please write to us at ACE INA Customer Services, P.O. Box 1000, 436
Walnut Street, WA04F, Philadelphia, PA 19106. Please include the policy number on any
correspondence with us.
n Bankers Standard lnsurance Company n ACE Property and Casualty lnsurance Company
436 Walnut Street, PO Box 1000 436 Walnut Street, PO Box 1000
Philadelphia, Pennsylvania 19106-3703 Philadelphia, Pennsylvania 1 910G3703
tr Century lndemnity Company n lndemnity lnsurance Company of North America
436 Walnut Street, PO Box 1000 436 Walnut Street, PO Box 1000
Philadelphia, Pennsylvania 1910G3703 Philadelphia, Pennsylvania 191 0G3703
n ACE Fire Underwriters lnsurance Company n lnsurance Company of North America
436 Walnut Street, PO Box 1000 436 Walnut Street, PO Box 1000
Philadelphia, Pennsylvania 1 91 06-3703 Philadelphia, Pennsylvania 1 91 06-3703
x ACE American lnsurance Company
436 Walnut Street, PO Box 1000
! Pacific Employers lnsurance Company
436 Walnut Street, PO Box 1000
ia. Pennsvlvania 191 06-3703 ia, Pennsvlvania I 9106-3703
PAYMENTFREQUENCY,, *1,,
**
:
PAYMENT SCHEDULE :
*Includes - KY Dornestic, Foreign and Alien Insurers $312;
liMnsurance Premium $11
POLICY IDENTIF
DECLARATIONS - GENERAL LIABILITY POLICY Page 2 e24940354
ln return for the payment of premium indicated above, we agree with you to provide the following
coverage(s) at the limits shown, subject to all of the terms and conditions of this policy.
$
$
SCHEDULE OF LOCATIONS
POLICY IDENTIFICATION
LIABILITY POLICY e24940354
DECLARATIONS - GENERAL Page 3
SCHEDULE OF COVERAGES
COVERAGE PART:
Location Class Code/ Premium
Number Coverage Description
Classification Basis Exposure Rate Premium
10050
All AII Mining ** ** $ ** $ 403,576
**Refer to the NoÈice of Election
$ $
$ $
$ $
$ $
$ $
$ $
$ $
ACE believes that policyholders should have access to information about ACE's practices and policies related to
the payment of compensation to brokers and independent agents. You can obtain that information by accessing
our website at http://www.aceoroducercompensation.com or by calling the following toll-free telephone number:
1-866-512-2862.
ALL-20887 (10/06)
Case 4:10-cv-02931 Document 1-1 Filed in TXSD on 08/16/10 Page 12 of 57
lL P 001 01 04
lL 00 17 11 98
(2) Any loss, cost or expense arising out of (5) "Bodily injury" or "property damage" arising
any: out of:
(a) Request, demand, order or statutory or (a) The operation of machinery or equip-
regulatory requirement that any insured ment that is attached to, or part of, a
or others test for, monitor, clean up, re- land vehicle that would qualify under the
move, contain, treat, detoxify or neutral- definition of "mobile equipment" if it were
ize, or in any way respond to, or assess not subject to a compulsory or financial
the effects of, "pollutants"; or responsibility law or other motor vehicle
(b) Claim or "suit" by or on behalf of a gov- insurance law in the state where it is li-
ernmental authority for damages be- censed or principally garaged; or
cause of testing for, monitoring, cleaning (b) the operation of any of the machinery or
up, removing, containing, treating, de- equipment listed in Paragraph Í.(21 or
toxifying or neutralizing, or in any way f.(3) of the definition of "mobile equip-
responding to, or assessing the effects ment".
of, "pollutants". h. Mobile Equipment
However, this paragraph does not apply to "Bodily injury" or "property damage" arising out
liability for damages because of "property of:
damage" that the insured would have in the
absence of such request, demand, order or (1) The transportation of "mobile equipment" by
statutory or regulatory requirement, or such an "auto" owned or operated by or rented or
claim or "suit" by or on behalf of a govern- loaned to qny insured; or
mental authority. (2) The use òf "mobilé equipment" in, or while
g. Aircraft, Auto Or Watercraft in.Þiáctice for, or while being prepared for,
any prearranged racing, speed, demolition,
"Bodily injury" or "property damage" arising out or:,s.tunting activity.
of the ownership, maintenance, use or
en-
trustment to others of any aircraft, "auto" or wa- i. War ":
(5) That particular part of real property on This exclusion does not apply to the loss of use
which you or any contractors or subcontrac- of other property arising out of sudden and ac-
tors working directly or indirectly on your cidental physical injury to "your product" or
behalf are performing operations, if the "your work" after it has been put to its intended
"property damage" arises out of those op- use.
erations; or n. Recall Of Products, Work Or lmpaired
(6) That particular part of any property that Property
must be restored, repaired or replaced be-
cause "your work" was incorrectly per-
Damages claimed for any loss, cost or ex-
pense incurred by you or others for the loss of
formed on it. use, withdrawal, recall, inspection, repair, re-
Paragraphs (1), (3) and (4) of this exclusion do placement, adjustment, removal or disposal of:
not apply to "property damage" (other than (1) "Your product";
damage by fire)to premises, including the con-
tents of such premises, rented to you for a pe- (2) "Your work"; or
riod of 7 or fewer consecutive days. A separate (3) "lmpaired property";
limit of insurance applies to Damage To Prem-
if such product, work, or property is withdrawn
ises Rented To You as described in Section lll
or recalled from the market or from use by any
- Limits Of lnsurance. person or organization because of a known or
Paragraph (2) of this exclusion does not apply suspected defect, deflciêncy, inadequacy or
if the premises are "your work" and were never dangerous condition in it,
occupied, rented or held for rental by you.
o. Personal And Advertising lnjury
Paragraphs (3), (4), (5) and (6) of this exclu-
"Bodily injurytl arising oût of "personal and ad-
sion do not apply to liability assumed under a
vertising injury".
sidetrack agreement.
Paragraph (6) of this exclusion does not apply
p. Electronic Data
to "property damage" included in the "products- Damages arising out of the loss of, loss of use
completed operations hazard" . of, damage to, conuption of, inability to access,
or inability to manipulate electronic data.
k. Damage To Your Product ' As used in this exclusion, electronic data
"Propefty damage" to "your product" arising out
means information, facts or programs stored as
of it or any part of it.
or on, created or used on, or transmitted to or
l. Damage To Your Work from computer software, including systems and
"Property damage" to "your work" arising out of applications software, hard or floppy disks, CD-
it or any part of it and included in the "products- ROMS, tapes, drives, cells, data processing
completed operations hazard" . devices or any other media which are used
with electronically controlled equipment.
This exclusion does not apply if the damaged
work or the work out of which:,.the damage q. Distribution Of Material ln Violation Of
arises was performed on your behalf by a sub- Statutes
contractor. "Bodily injury" or "property damage" arising di-
m. Damage To lmpaired Proþerty Or Property rectly or indirectly out of any action or omission
Not Physically lnjured that violates or is alleged to violate:
"Property damage" to "impaired property" or (1) The Telephone Consumer Protection Act
property that has not been physically injured, (TCPA), including any amendment of or
arising out of: addition to such law; or
(1) A defect, deficíency, inadequacy or danger- (2) The CAN-SPAM Act of 2003, including any
ous condition in "your product" or "your amendment of or addition to such law; or
work"; or (3) Any statute, ordinance or regulation, other
(2) A delay or failure by you or anyone acting than the TCPA or CAN-SPAM Act of 2003,
on your behalf to perform a contract or that prohibits or limits the sending, transmit-
agreement in accordance with its terms. ting, communicating or distribution of mate-
rial or information.
Exclusions c. through n. do not apply to damage c. Material Published PriorTo Policy Period
by fire to premises while rented to you or tempo-
"Personal and advertising injury" arising out of
rarily occupied by you with permission of the oral or written publication of material whose
owner. A separate limit of insurance applies to this
first publication took place before the beginning
coverage as described in Section lll - Limits Of
of the policy period.
lnsurance.
COVERAGE B PERSONAL AND ADVERTISING
d. CriminalActs
INJURY LIABILITY "Personal and advertising injury" arising out of
a criminal act committed by or at the direction
L lnsuring Agreement of the insured.
a. We will pay those sums that the ínsured be- e. Gontractual Liability
comes legally obligated to pay as damages
because of "personal and advertising injury" to "Personal and adveñising injury" for which the
which this insurance applies. We will have the insured has assumed liability in a contract or
right and duty to defend the insured against agreement. This exclusion does not apply to li-
any "suit" seeking those damages. However, ability for damages that the insured would have
we will have no duty to defend the insured in the absence of the contract or agreement.
against any "suit" seeking damages for "per- f. Breach Of Contract
sonal and advertising injury" to which this in-
"Personal and advertising injury" arising out of
surance does not apply. We may, at our discre-
tion, investigate any offense and settle any a breach of contiact, except an implied con-
claim or "suit" that may result. But:
tract to use another's advertising idea in your
"advertisement'i.
(1) The amount we will pay for damages is
limited as described in Section lll - Limits
g. Quality Or Performance Of Goods - Failure
To Conform To',:Statements
Of lnsurance; and
(2) "Personal and advertising injury" arising out of
Our right and duty to defend end when we
have used up the applicable limit of insur- the failuié of goods, products or services to
:conform with any statement of quality or per-
ance in the payment of judgments or set-
formance made in your "advertisement".
tlements under Coverages A or B or medi-
cal expenses under Coverage G. h. Wrông Description Of Prices
No other obligation or liability to pay sums or "Personal and advertising injury" arising out of
perform acts or services is covered unless ex- the wrong description of the price of goods,
plicitly provided for under Supplementary Pay- products or services stated in your "advertise-
ments - Coverages A and B. ment".
b. This insurance applies to "personal and adver- i. lnfringement Of Gopyright, Patent,
tising injury" caused by an offense arising out Trademark Or Trade Secret
of your business but only if thê offense was "Personal and advertising injury" arising out of
committed in the "coverage territory!'during the the infringement of copyright, patent, trade-
policy period mark, trade secret or other intellectual properly
2. Exclusions rights. Under this exclusion, such other intellec-
This insurance does not apply to:
tual property rights do not include the use of
another's advertising idea in your "advertise-
a. Knowing Violation Of Rights Of Another mgnt".
"Personal and advertising injury" caused by or However, this exclusion does not apply to in-
at the direction of the insured with the knowl- fringement, in your "advertisement", of copy-
edge that the act would violate the rights of an- right, trade dress or slogan.
other and would inflict "personal and advertis- j.
ing injury". lnsureds ln Media And lnternetType
Businesses
b. Material Published With Knowledge Of
"Personal and advertising injury" committed by
Falsity
an insured whose business is:
"Personal and advertising injury" arising out of
oral or written publication of material, if done by
(1) Advertising, broadcasting, publishing or
telecasting;
or at the direction of the insured with knowl-
edge of its falsity. (2) Designing or determining content of web-
sites for others; or
(3) An lnternet search, access, content or (3) lnsurrection, rebellion, revolution, usurped
service provider. power, or action taken by governmental au-
However, this exclusion does not apply to thority in hindering or defending against any
Paragraphs 14.a., b. and c. of "personal and of these.
advertising injury" under the Definitions Sec- p. Distribution
Of Material ln Violation Of
tion. Statutes
For the purposes of this exclusion, the placing "Personal and advertising injury" arising di-
of frames, borders or links, or advertising, for rectly or indirectly out of any action or omission
you or others anywhere on the lnternet, is not that violates or is alleged to violate:
by itself, considered the business of advertis- (1) The Telephone Consumer Protection Act
ing, broadcasting, publishing or telecasting. (TCPA), including any amendment of or
k. Electronic Chatrooms Or Bulletin Boards addition to such law; or
"Personal and advertising injury" arising out of (2) The CAN-SPAM Act of 2003, including any
an electronic chatroom or bulletin board the in- amendment of or addition to such law; or
sured hosts, owns, or over which the insured (3) Any statute, ordinance or regulation, other
exercises control. than the TCPA or CAN-SPAM Act of 2003,
l. Unauthorized Use Of Another's Name Or that prohibits or limits the sending, transmit-
Product ting, communicating or distribution of mate-
"Personal and advertising injury" arising out of rial or information.
the unauthorized use of another's name or COVERAGE C MEDICAL PAYMENTS
product in your e-mail address, domain name l. lnsuring Agreement.
or metatag, or any other similar tactics to mis-
lead another's potential customers. a. We will pay medical expenses as described
below for "bodily injury" caused by an accident:
m. Pollution
(1) On prémises you own or rent;
"Personal and advertising injury" arising out of
the actual, alleged or threatened discharge, . (2) On ways next to premises you own or rent;
dispersal, seepage, migration, release or es- or
cape of "pollutants" at any time. (3) Because of your operations;
n. Pollution-Related provided that:
Any loss, cost or expense arising out of any: (a) The accident takes place in the "cover-
(1) Request, demand, order or statutory or age territory" and during the policy pe-
regulatory requirement that any insured or riod;
others test for, monitor, clean up; remòve, (b) The expenses are incurred and reported
contain, treat, detoxify or neutralize,,or in to us within one year of the date of the
any way respond to, or assess the effects accident; and
of, "pollutants"; or (c) The injured person submits to examina-
(2) Claim or suit by or on behalf of a govern- tion, at our expense, by physicians of
mental autho¡ity for damages because of our choice as often as we reasonably
testing for, monitoring, cleaning up, remov- require.
ing, containing,' treating, detoxifying or neu- b. We will make these payments regardless of
tralizing, or in any way responding to, or fault. These payments will not exceed the ap-
assessing the effects of, "pollutants". plicable limit of insurance. We will pay reason-
o. War able expenses for:
"Personal and advertising injury", however (1) First aid administered at the time of an
caused, arising, directly or indirectly, out of: accident;
(1) War, including undeclared or civil war; (2) Necessary medical, surgical, x+ay and
(2) Warlike action by a military force, including dental services, including prosthetic de-
action in hindering or defending against an vices; and
actual or expected attack, by any govern- (3) Necessary ambulance, hospital, profes-
ment, sovereign or other authority using sional nursing and funeral services.
military personnel or other agents; or
(b) Conduct and control the defense of the 2. Each of the following is also an insured:
indemnitee in such "suit".
a. Your "volunteer workers" only while performing
So long as the above conditions are met, attor- duties related to the conduct of your business,
neys' fees incurred by us in the defense of that in- or your "employees", other than either your
demnitee, necessary litigation expenses incurred "executive officers" (if you are an organization
by us and necessary litigation expenses incurred other than a partnership, joint venture or limited
by the indemnitee at our request will be paid as liability company) or your managers (if you are
Supplementary Payments. Notwithstanding the a limited liability company), but onty for acts
provisions of Paragraph 2.b.(21of Section I - Cov- within the scope of their employment by you or
erage A - Bodily lnjury And Property Damage Li- while performing duties related to the conduct
ability, such payments will not be deemed to be of your business. However, none of these "em-
damages for "bodily injury" and "property damage" ployees" or "volunteer workers" are insureds
and will not reduce the limits of insurance. for:
Our obligation to defend an insured's indemnitee (1) "Bodily injury" or "personal and advertising
and to pay for attorneys'fees and necessary litiga- injury":
tion expenses as Supplementary Payments ends
when we have used up the applicable limit of in-
(a) To you, to your pertners or members (if
you are a partnership or joint venture),
surance in the payment of judgments or setfle-
ments or the conditions set forth above, or the to your members (if you are a limited li-
terms of the agreement described in Paragraph f. ability company), to a colemployee"
while in the course of his or l-ler em-
above, are no longer met.
ployment or performing duties related to
SECTION II - WHO IS AN INSURED the cohduct of your business, or to your
1. lf you are designated in the Declarations as: ' other 'fvolunteer workers" while perform-
ing duties ielated to the conduct of your
a. An individual, you and your spouse are insur- businêss;
eds, but only with respect to the conduct of a
business of which you are the sole owner. (b) To the spouse, child, parent, brother or
b. A partnership or joint venture, you are an in-
: sister of that co-"employee" or "volun-
sured. Your members, your partners, and their
, teer worker" as a consequence of Para-
graph (1Xa) above;
spouses are also insureds, but only with re-
spect to the conduct of your business. ', , (c) For which there is any obligation to
share damages with or repay someone
c. A limited liability company, you are an insured. else who must pay damages because of
Your members are also insureds, but only with the injury described in Paragraphs (1)(a)
respect to the conduct of your business. Your or (b) above; or
managers are insureds, but only with respect
to their duties as your managers. (d) Arising out of his or her providing or
failing to provide professional health
d. An organization other than a partnership, joint care services.
venture or limited liability company, you are an
insured. Your "executive officers" and directors (2) "Property damage" to property:
are insureds, but only with respect to their du- (a) Owned, occupied or used by,
ties as your officeis or dirêc-tors. Your stock- (b) Rented to, in the care, custody or con-
holders are also insureds, but only with respect
trol of, or over which physical control is
to their liability as stockholders.
being exercised for any purpose by
e. A trust, you are an insured. Your trustees are you, any of your "employees", "volunteer
also insureds, but only with respect to their du-
workers", any partner or member (if you are
ties as trustees.
a partnership or joint venture), or any mem-
ber (if you are a limited liability company).
b. Any person (other than your "employee" or 3. The Products-Completed Operations Aggregate
"volunteer worker"), or any organization while Limit is the most we will pay under Coverage A for
acting as your real estate manager. damages because of "bodily injury" and "property
c. Any person or organization having proper damage" included in the "products-completed op-
temporary custody of your property if you die, erations hazatd".
but only: 4. Subject to Paragraph 2. above, the Personal and
(1) With respect to liability arising out of the Advertising lnjury Limit is the most we will pay un-
maintenance or use of that property; and der Coverage B for the sum of all damages be-
cause of all "personal and advertising injury" sus-
(2) Until your legal representative has been tained by any one person or organization.
appointed.
5. Subject to Paragraph 2. or 3. above, whichever
d. Your legal representative if you die, but only applies, the Each Occurrence Limit is the most we
with respect to duties as such. That represen- will pay for the sum of:
tative will have all your rights and duties under
this Coverage Part. a. Damages under Coverage A; and
3. Any organization you newly acquire or form, other b. Medical expenses under Coverage G
than a partnership, joint venture or limited liability because of all "bodily injury1 and "property dam-
company, and over which you maintain ownership age" arising out of any one I'occurrence".
or majority interest, will qualify as a Named ln- 6. Subject to Paragraph 5. above, the Damage To
sured if there is no other similar insurance avail- Premises Rented To You Limit is the most we will
able to that organization. However: pay under Coverage A for damages because of
a. Coverage under this provision is afforded only "propert¡r damage" to any one premises, while
until the 90th day after you acquire or form the rented ,to you, or,in'the case of damage by fire,
organization or the end of the policy period, while rented to you or temporarily occupied by you
whichever is earlier; with permission of the owner.
b. Coverage A does not apply to "bodily injury" or 7. Subject to Pâràgraph 5. above, the Medical Ex-
"property damage" that occurred before you : pênse Limit is the most we will pay under Cover-
acquired or formed the organization; and ¡,agè. G for all medical expenses because of "bodily
c. Coverage B does not apply to "personal and ,,, ",í'njury'r sustained by any one person.
advertising injury" arising out of an offense it¡e iim¡ts of lnsurance of this Coverage Part apply
committed before you acquired or formed the seþarately to each consecutive annual period and to
organization. ariy remaining period of less lhan 12 months, starting
No person or organization is an insured with respect with the beginning of the policy period shown in the
to the conduct of any current or past partnership; joint Declarations, unless the policy period is extended
venture or limited liability company that is not shown after issuance for an additional period of less than 12
as a Named lnsured in the Declarations. months. ln that case, the additional period will be
deemed part of the last preceding period for purposes
sEcTloN ilt- LtMtTS oF |NSURANCE ,
of determining the Limits of lnsurance.
1. The Limits of lnsurance shown in the,Declarations SECTION IV - COMMERCIAL GENERAL LIABILITY
and the rules below fix the most we will pay re- CONDITIONS
gardless of the number of:
1. Bankruptcy
a. lnsureds;
Bankruptcy or insolvency of the insured or of the
b. Claims made or "suits" brought; or insured's estate will not relieve us of our obliga-
c. Persons or organizations making claims or tions under this Coverage Part.
bringing "suits". 2. Duties ln The Event Of Occurrence, Offense,
2. The General Aggregate Limit is the most we will Glaim Or Suit
pay for the sum of: a. You must see to it that we are notified as soon
a. Medical expenses under Coverage C; as practicable of an "occurrence" or an offense
which may result in a claim. To the extent pos-
b. Damages under Coverage A, except damages sible, notice should include:
because of "bodily injury" or "property damage"
included in the "products-completed operations (1) How, when and where the "occurrence" or
hazard"; and offense took place;
c. Damages under Coverage B. (2) The names and addresses of any injured
persons and witnesses; and
(3) When this insurance is excess over other c. We have issued this policy in reliance upon
insurance, we will pay only our share of the your representations.
amount of the loss, if any, that exceeds the 7. Separation Of lnsureds
sum of:
Except with respect to the Limits of lnsurance, and
(a) The total amount that all such other any rights or duties specifically assigned in this
insurance would pay for the loss in the Coverage Part to the first Named lnsured, this in-
absence of this insurance; and surance applies:
(b) The total of all deductible and self- a. As if each Named lnsured were the only
insured amounts under all that other in- Named lnsured; and
surance.
(a) We will share the remaining loss, if any,
b. Separately to each insured against whom claim
is made or "suit" is brought.
with any other insurance that is not de-
scribed in this Excess lnsurance provision 8. Transfer Of Rights Of Recovery Against Others
and was not bought specifically to apply in To Us
excess of the Limits of lnsurance shown in lf the insured has rights to recover all or part of
the Declarations of this Coverage Part. any payment we have made under this Coverage
c. Method Of Sharing Part, those rights are transferred to us. The in-
sured must do nothing after loss to impair them. At
lf all of the other insurance permits contribution our request, the insured will bring "suit" or transfer
by equal shares, we will follow this method those rights to us and help us enforce them.
also. Under this approach each insurer con-
tributes equal amounts until it has paid its ap- 9. When We Do Not Renew
plicable limit of insurance or none of the loss lf we deóide not to renew this Coverage Part, we
remains, whichever comes first. will mail or deliver to the first Named lnsured
lf any of the other insurance does not permit shown in. the',Declarations written notice of the
contribution by equal shares, we will contribute nonreneWal not less than 30 days before the expi-
by limits. Under this method, each insurer's ration date.
share is based on the ratio of its applicable lf noticê,is mailed, proof of mailing will be sufficient
limit of insurance to the total applicable limits of proof,Of notice.
insurance of all insurers.
SECTION V- DEFINITIONS
5. Premium Audit
l. "Advertisement" means a notice that is broadcast
a. We will compute all premiums for this Cover- or published to the general public or specifìc mar-
age Part in accordance with our rules and ket segments about your goods, products or ser-
rates. víces for the purpose of attracting customers or
b. Premium shown in this Coverage Part as ad- supporters. For the purposes of this definition:
vance premium is a deposit premium only. At a. Notices that are published include material
the close of each audit period we will compute placed on the lnternet or on similar electronic
the earned premium for that period and send means of communication; and
notice to the first Named lnsured. The due date
for audit and retrospective premiums is the
b. Regarding web-sites, only that part of a web-
síte that is about your goods, products or ser-
date shown as the due date on the bill. lf the
vices for the purposes of attracting customers
sum of the advance and audit premiums paid
or supporters is considered an advertisement.
for the policy period is greater than the earned
premium, we will return the excess to the first 2. "Auto" means:
Named lnsured. a. A land motor vehicle, trailer or semitrailer de-
c. The first Named lnsured must keep records of signed for travel on public roads, including any
the information we need for premium computa- attached machinery or equipment; or
tion, and send us copies at such times as we b. Any other land vehicle that is subject to a com-
may request. pulsory or financial responsibility law or other
6. Representations motor vehicle insurance law in the state where
it is licensed or principally garaged.
By accepting this policy, you agree:
However, "auto" does not include "mobile equip-
a. The statements in the Declarations are accu-
ment".
rate and complete;
b. Those statements are based upon representa-
tions you made to us; and
10."Leased worker" means a person leased to you by However, self-propelled vehicles with the fol-
a labor leasing firm under an agreement between lowing types of permanently attached equip-
you and the labor leasing firm, to perform duties ment are not "mobile equipment" but will be
related to the conduct of your business. "Leased considered "autos":
worker" does not include a "temporary worker". (1) Equipment designed primarilyfor:
11."Loading or unloading" means the handling of (a) Snow removal;
property:
(b) Road maintenance, but not construction
a. After it is moved from the place where it is or resurfacing; or
accepted for movement into or onto an aircraft,
watercraft or "auto"; (c) Street cleaning;
b. While it is in or on an aircraft, watercraft or (2) Cherry pickers and similar devices mounted
"auto"; or on automobile or truck chassis and used to
raise or lower workers; and
c. While it is being moved from an aircraft, water-
craft or "auto" to the place where it is finally de- (3) Air compressors, pumps and generators,
livered; íncluding spraying, welding, building clean-
ing, geophysical exploration, lighting and
but "loading or unloading" does not include the well servicing equipment.
movement of property by means of a mechanical
device, other than a hand truck, that is not at- However, "mobile equipment" does not include
tached to the aircraft, watercraft or "auto". any land vehicles that aré subject to a compulsory
or flnancial responsibility law or other motor vehi-
l2."Mobile equipment" means any of the following cle insurance law ih the'state where it is licensed
types of land vehicles, including any attached ma- or principally gáraged. Land vehicles subject to a
chinery or equipment: compul,Èôry or fihãncial responsibility law or other
a. Bulldozers, farm machinery, forklifts and other motor 'vehicle , insurance law are considered
vehicles designed for use principally off public "autos".
roads; 13."Ocëurren""li' r"un, an accident, including con-
b. Vehicles maintained for use solely on or next to tinuous. or repeated exposure to substantially the
premises you own or rent; same géneral harmful conditions.
c. Vehicles that travel on crawler treads; l.4,"Personal and advertising injury" means injury,
d. Vehicles, whether self-propelled or not, main- including consequential "bodily injury", arising out
tained primarily to provide mobility to perma- of one or more of the following offenses:
nently mounted: a. False arrest, detention or imprisonment;
(l) Power cranes, shovels, loaders;,,diggers or b. Malicious prosecution;
drills; or c. The wrongful eviction from, wrongful entry into,
(2) Road construction or resurfacing equipment or invasion of the right of private occupancy of
such as graders, scrapers or rollers; a room, dwelling or premises that a person oc-
e. Vehicles not described in Paraþraþh a., b., c. cupies, committed by or on behalf of its owner,
or d. above that are not self-propelled and are landlord or lessor;
maintained primarily to provide mobility to per- d. Oral or written publication, in any manner, of
manently attached equipment of the following material that slanders or libels a person or or-
types: ganization or disparages a person's or organi-
(f) Air compressors, pumps and generators, zation's goods, products or services;
including spraying, welding, building clean- e. Oral or written publication, in any manner, of
ing, geophysical exploration, lighting and material that violates a person's right of pri-
well servicing equipment; or vacy;
(2) Cherry pickers and similar devices used to f. The use of another's advertising idea in your
raise or lower workers; "advertisement"; or
f. Vehicles not described in Paragraph a., b., c. g. lnfringing upon another's copyright, trade dress
or d. above maintained primarily for purposes or slogan in your "advertisement".
other than the transportation of persons or
cargo.
l5."Pollutants" mean any solid, liquid, gaseous or b. Loss of use of tangible propedy that is not
thermal irritant or contaminant, including smoke, physically injured. All such loss of use shall be
vapor, soot, fumes, acids, alkalis, chemicals and deemed to occur at the time of the "occur-
waste. Waste includes materials to be recycled, rence" that caused it.
reconditioned or reclaimed. For the purposes of this insurance, electronic data
I 6. "Products-completed operations hazard": is not tangible property.
a. lncludes all "bodily injury" and "property dam- As used in this definition, electronic data means
age" occurring away from premises you own or information, facts or programs stored as or on,
rent and arising out of "your product" or "your created or used on, or transmitted to or from com-
work" except: puter software, including systems and applications
(1) Products that are still in your physical pos- software, hard or floppy disks, CD-ROMS, tapes,
session; or drives, cells, data processing devices or any other
media which are used with electronically controlled
(2) Work that has not yet been completed or equipment.
abandoned. However, "your work" will be
deemed completed at the earliest of the fol- 18."Suit" means a civil proceeding in which damages
lowing times: because of "bodily injury", llproperty damage" or
"personal and adveftising injury" to which this in-
(a) When all of the work called for in your surance applies are alleged. "Suit" includes:
contract has been completed.
a. An arbitration proceeding in which such dam-
(b) When all of the work to be done at the ages are claimed and to which the insured
job site has been completed if your con- must submit or does sùbmit with our consent;
tract calls for work at more than one job or
site.
b. Any other alternative dispute resolution pro-
(c) When that part of the work done at a job ceeding in which such damages are claimed
site has been put to its intended use by and to which the insured submits with our con-
any person or organization other than , sent.
another contractor or subcontractor
19."Témporary worker" means a person who is fur-
working on the same project.
nished,,to you to substitute for a permanent "em-
Work that may need service, maintenance, ployee" on leave or to meet seasonal or short-term
correction, repair or replacement, but which workload conditions.
is otherwise complete, will be treated as
completed. 20."Volunteer worker" means a person who is not
your "employee", and who donates his or her work
b. Does not include "bodily injury" or "property and acts at the direction of and within the scope of
damage" arising out of: duties determined by you, and is not paid a fee,
(1) The transportation of property, unless the salary or other compensation by you or anyone
injury or damage arises out of a condition in else for their work performed for you.
or on a vehicle not owned or operated by 21. "Your product":
you, and that condition was created by the
"loading or unloading" oJ that vehicle by any a. Means:
insured; (1) Any goods or products, other than real
property, manufactured, sold, handled, dis-
(2) The existence of tools, uninstalled equip-
ment or abandoned or unused materials; or tributed or disposed of by:
(3) Products or operations for which the classi- (a) You;
fication, listed in the Declarations or in a (b) Others trading under your name; or
policy schedule, states that products- (c) A person or organization whose busi-
completed operations are subject to the ness or assets you have acquired; and
General Aggregate Limit.
(2) Containers (other than vehicles), materials,
17. "Property damage" means: parts or equipment furnished in connection
a. Physical injury to tangible property, including with such goods or products.
all resulting loss of use of that property. All b. lncludes:
such loss of use shall be deemed to occur at
the time of the physical injury that caused it; or (1) Warranties or representations made at any
time with respect to the fitness, quality, du-
rability, performance or use of "your prod-
uct"; and
ln any suit in Alaska in which we have a right or duty to defend an insured in addition to the limits of liability, our
obligation under the applicable coverage to pay attorney fees taxable as costs against the insured is limited as
follows:
Alaska Rule of Civil Procedure 82 provides that if you are held liable, some or all of the attorney fJes oi the person
ma!ng a claim against you must be paid by you. The amount that must be paid by you is determinedr,by Alaska Rule
of Civil Procedure 82. We provide coverage for attorney fees for which you are liable under Alaska Rule or Civil
Procedure 82 subject to the following limitation: , ,
,,
We will not pay that portion of any attorney's fees that is in excess of fees calcutated by applying the
schedule for contested cases in Alaska Rule Civil Procedure 82(bX1) to the limit ot ilatiiiitlr of tfre
applicable coverage. : .:t :.
This limitation means the potential cosfs fhaf may be awarded against you as attorney fees may not be
covered in full. You will have to pay any attorney fees not covered directty.
For example, the attorney fees provided by the schedule for contested cases in Alaska Rule of Civil procedure
82(b)(1) are:
'' :
Therefore, if a court awards a jydgment against you in the amount of $125,000, in addition to that amount you would
be liable under Alaska Rule of Civil Procedure B2(b)(1) for attorney fees of $15,000, calculated as follows:
lf the limit of liability of the applicable coverage is $100,000, we would pay $100,000 of the 9125,000 award, and
$12,500 for Alaska Rule of Civil Procedure 82(b)(1) attorney fees, as calculaied as follows:
lgqwoylO be liable to pay, direcily and without our assistance, the remaining $2S,OOO in liability plus the remaining
$2,500 for attorney fees under Alaska Rule of Civil Procedure 82 not covered by this policy.
It is unlawful to knowingly provide false, incomplete, or misleading facts or information to an insurance company for the
purpose of defrauding or attempting to defraud the company. Penalties may include imprisonment, fines, denial of
insurance, and civil damages. Any insurance company or agent of an insurance company who knowingly provides
false, incomplete, or misleading facts or information to a policyholder or claimant for the purpose of defrauding or
attempting to defraud the policyholder or claimant with regard to a settlement or award payable from insurance
proceeds shall be reported to the Colorado division of insurance within the department of regulatory agencies.
Answers to questions about your insurance, coverage information, or assistance in resolving complaints can be
obtained by calling ACE USA, Customer Support Service Department, aT 1-8QO-352-4462.
WARNING: Any person who knowingly, and with intent to injure, defraud or deceive any insurer,
makes any claim for the proceeds of an insurance policy containing any false, incomplete or misleading
information is guilty of a felony.
You are insured by the Company listed on the Signature page which is named on the first page of the Declarations
of this policy. lt is an ACE USA company and has its principal office at 436 Walnut Street, PO Box 1000,
Philadelphia, PA 19106-3703.
NOTTCË
A Pennsylvania law known as the "lnsurance Consultation Services Exemption Act" has a provision that
insurers, their agents, employees or service contractors are not subject to liability for damages from
injury, death or loss occurring as a result of any act or omission by any person in the course of performing
any survey, consultation, inspection, advisory or related seruice incident to an application for insurance, a
new policy for insurance or an existing policy or insurance for the purpose of reducing the likelihood of
injury, death or loss.
1) lf the injury, loss or death occurred during the actual pedormance of consultation services and was
caused by the negligence of the insurer, its agent, employees or service contractors: which was a
::|
...
2) To any consultation services required to be performed under the piovisions of a written service
contract not incidental to a policy of insurance
3) ln any action against any insurer, its agents, employees or service contractors for damages caused by
the act or omission of said insurer, its agents, employees or service contractors in which it is judicially
determined that such act or omission constituted a crime, actual màlice or gross negligence.
This provision of the "lnsurance Consultation Services Exemption Act" applies to all insurance
consultation services rendered incídent to policies of property or casualty insurance. lt does not apply to
the immunities and protections provided by section 305, act of June 2,1915 known as the "Pennsylvania
Workmen's Compensation Act."
The provisions of the "lnsurance Consultation Services Exemption Act" shall not be effective and
applicable unless the insurer furnishes the insured with written notice of the provision of this act at the
time the policy is issued or renewed. The lnsurance Commissioner has approved the contents of this
notice and the manner in which the notice is given.
Ail-5S54 (7i92)
Case 4:10-cv-02931 Document 1-1 Filed in TXSD on 08/16/10 Page 35 of 57
POLICY NUMBER: HDO G24940354
This information is being provided to you pursuant to the requirements of Title 28, Part 1, ChapterI , Subchapter E. 1.601
of the Texas Administrative Code relating to our Toll Free information and complaint number.
To obtain information or make a complaint: Para obtener informacion o para someter una queja:
You may call the Company's toll-free telephone number Usted puede llamar al numero de telefono gratis de la
for information or to make a complaint at: Compania para informacion o par.a someter una queja
at:
r-(800) 352-4462 I (800) 3524462
You may also write to the Company at: Usted tambien puede escribir a la Compania:
You may contact the Texas Department of lnsurance to Puede:communicarse con el Departmento de Seguros
obtain information on companies, coverages, rights or de Texás para obtener informacion acerca de
complaints at: companias, coberturas, derechos o quejas al:
P. O. Box 149104 :
P. O. Box 149104
AUSTTN, TX78714-9104 AUST|N,lX 78714-9104
FAX # (512) 475-1771 FAX # (512) 475-1771
Web: http ://www.tdi.state.tx. us Web: htto://www.tdi. state.tx. us
E-mail : Consum erProtectionrôidi.state.tx. us E-mail : [email protected]. us
PREMIUM OR CLAIM DISPUTES: Should you have a DISPUTAS SOBRE PRIMAS O RECLAMOS: Sitiene
dispute concerning your premium or about a claim you una disputa concerniente a su prima o un reclamo, debe
should contact your agent or the companyfirst. lf the comunicarse con el agente o la compania primero. Si
dispute is not resolved you may contact the Texas no se resuelve la disputa puede entonces
Departrment of lnsurance. communicarse con el departmento de Seguros en Texas
ATTACH THIS NOTICE TO YOUR POLICY: This notice UNA ESTE AVISO A SU POLIZA: Este aviso es soto
is for information only and does not become a part or para proposito de informacion y no se convierte en parte
condition of the attached document. o condicion del documento adjunto.
The ACE Companies are required by Texas law and regulat¡ons to maintain or provide accident prevention services
for its commercial automobile, general liability and professional liability policyholders. The Ace Companies offer an
array of accident prevention services in Texas at no additional charge. These services are intended to help prevent
and/or minimize loss.
These services include but are not limited to: individual risk surveys; improvement recommendations; loss
investigation; specific loss problem identification and recommended improvement actions.
ACE may recommend one or more of these services based upon hazard, experience, and size of your Texas
operations. You have the choice of receiving or declining any of the services offered. lf you wish to decline all of the
services or wish to receive only selected risk control service, ptease indicate that by sign¡ng ànd dating this letter in
the space provided below. Please mail or fax to the captioned address or fax number. lf you decline all of ACE's risk
control services or choose only a support service, such as ergonomics survey, driving training, or other services and
not a complete risk survey, we still have a responsibility under Texas law and regulation to monitor your losses. ln
the event you start to have a loss problem and a trend is established, and/or adverse loss ratio is developed, we will
contact you and offer to assist you in addressing the situation.
Sincerely,
tr I am aware of the loss control services offered and decline them. I have made other arrangements for
these services.
n I have no risk control services needs now. I reserve the right to request loss control services within the
period. ",
(Signature) (Phone #) w
Print Name: Policy #
Company Name:
Address:
M-I/ T,.L.c.
as well as any organization other than a partnership or joint venture, ,:and over which you or your subsidiary curren¡y
maintain ownership or majority interest provided there is no other similâr,, insurance availáble to that organization;
and any
other organization you newly acquire or form, other than a partnership or joint venture, and over which you maintain
ownership or majority interest, provided:
b) you notify us of such acquisition not later than 60 days after lhe end of the policy period.
1. Coverage A does not apply to "bodily injury'l or "pròperty damage " that occurred before you acquired or formed
the organization; and
2' Coverage B does not apply to "personal injury" or "advertising injury" arising out of an offense committed before
you acquired or formed the organization.
No person or organization is an insured with respect to the conduct of any current or past joint venture that is
not shown as
a Named lnsured on this schedule.
Authorized Agenl
LD-12992a (08/04) lncludes copyrighted material of lnsurance services office, lnc. with its permission
Case 4:10-cv-02931 Document 1-1 Filed in TXSD on 08/16/10 Page 38 of 57
Case 4:10-cv-02931 Document 1-1
POLICY NUMBER: HDO G24940354
Filed in TXSD on 08/16/10 Page 39 of 57
ENDT. #2
r) DEDUCTIBLE AMOUNT
1) DeductibleAmount: $1,000,000
2) The Deductible Amount applies separately to:
(a) The sum of: ,
(i) damages sustained, by ãny one person or organization under Coverage B; and
(ii) 'ALAE" incurred with respect to an offense under Coverage B.
il) ADDTTTONALPROVTSIONS
1) "We" will pay all sums that "we" become legally obligated to pay up to the Limits of lnsurance under
this policy.
2) "You" must reimburse us up to the Deductible Amount for any amounts we have paid under this
policy.
3) The Deductible Amount will apply as shown in Section I of this endorsement regardless of the
number of claimants, lnsureds, claims made or "suits" brought, or persons or organizations making
claims or bringing "suits".
4) lf "you" fail to reimburse "us" for any amount due under this endorsement, or fail to provide "us" any
collateral that "we" require, "you" will be in default of "your" obligations to "us", and "we" may take any
age
lncludes copyrighted material of lnsurance Services Office, lnc. with its permission
Case 4:10-cv-02931 Document 1-1 Filed in TXSD on 08/16/10 Page 40 of 57
steps "we" deem necessary to enforce our rights against "you", including but not limited to drawing on
any amount of collateral "we" hold or canceling this policy, if permitted by law.
5) Each Named lnsured is jointly and severally liable for all reimbursable amounts under this
endorsement.
6) lf "we" recover any payment "we" make under this policy from anyone liable for damages or "ALAE",
the amount "we" recover will first be applied to any payments "we" made in excess of the Deductible
Amount and to "oui' expenses in obtaining the recovery. The remainder of the recovery, if any, will
reduce the amount that is reimbursable by "you".
"Allocated Loss Adjustment Expense(s)" or "ALAE" means such claim expenses, costs and any
interest provided for under Section I - Coverages, Supplementary Payments - Coverages A and B of
this policy, that are incurred in connection with the investigation, administration, adjustment, subrogation,
settlement or defense of any claim or lawsuit that we, under our accounting practices, directly allocate to
a particular claim, whether or not a payment indemnifying the claimant(s) is made. Such expenses
include, but are not limited to all court costs, fees and expenses; fees for service of process; fees and
expenses to attorneys for legal services; the cost of services of undercover operations and detectives;
fees to obtain medical cost containment services; the cost of employing experts for the purpose of
preparing maps, photographs, diagrams, and chemical or physical analysis, or for expert advice or
opinion; the cost of obtaining copies of any public records; and the cost of depositions and court
reporters or recorded statements, provided, however, that Allocated Loss Adjustmént Eipense shall not
include the salaries and traveling expenses of our employees or our overhead and adjusters'fees.
All other terms of this policy, including those with respect to:
(a) Our right and duty to defend any "insured" against a "suit" asking for damages to which this
insurance applies, and
remain unchanged.
Authorized Agent
lncludes copyrighted material of lnsurance Services Offìce, lnc. with its permission
Case 4:10-cv-02931 Document 1-1 Filed in TXSD on 08/16/10 Page 41 of 57
POLICY NUMBER: HDO G24940354 ENDT. #3
a. Your "employees", other than your "executive officers", but only for acts within the scoþe of their employment by you
or while performing duties related to the conduct of your business. However, no i'èmployee" is an insured for:
a.) To you, to your partners or members (if you are a partnership or joint venture), or to a co-"employee"
while in the course of his or her employment or while performing dúties related to the conduct of your
business;
b.) To the spouse, child, parent, brother or sister of the òo-lemployee" as a consequence of paragraph
(1 Xa) above;
c.) For which there is an obligation to share damages with or repay someone else who must pay damages
because of the injury described in paragraphs (1 )(a) or (b) above;.
(2) "Bodily injury" or "personal and advertising injury; arising out of his or her providing or failing to provide
professional health care services.
(b) Rented to, in the care, custody or control of, or over which physical control is being exercised for any
purpose by
you, any of your "employees" or, if you are a partnership or joint venture, by any partner or member.
Authorized Representative
tn
Case 4:10-cv-02931 Document 1-1 Filed in TXSD on 08/16/10 Page 42 of 57
POLIGY NUMBER: HDO G24940354 ENDT, #4
ALIENATED PREMISES
Named lnsured M-I , L. L. C. Endorsement Number
4
Policy Symbol Policy Number Policy Period Effective Date of Endorsement
HDO c24940354 04/oL/20t0 to 04/oL/2OLL
lssued By (Name of lnsurance Company)
ACE American Insurance Companv
lnsert the policy number. The rema¡nder of the information is to be completed only when this endorsement is issued subsequent to the preparation of the policy.
Authorized Agent
AMENDMENÏ OF CONDITIONS
The following are added to paragraph 2. Duties ln The Event of Occurrence, Claim or Suit of Section lV - Commercial
General Liabil ity Conditions:
e. lt is agreed that knowledge of an occurrence by any of your agents, servants or employees shall not constitute
knowledge by you unless one of your executive officers or anyone responsible for administering your insurance
program has received such notice from the agent, servant or employee.
The following is added to paragraph 6. Representations of Section lV - Comrnercial General Liability Conditions:
d. Your failure to disclose all hazards existing as of the inception date of the policy shall not prejudice you with respect
to the coverage afforded by this policy, provided such failure or omission is not intentional and you did not know
about such hazards prior to the commencement of the policy period.
Authorized Representative
n perm
Case 4:10-cv-02931 Document 1-1 Filed in TXSD on 08/16/10 Page 44 of 57
POLICY NUMBER: HDO G24940354 ENDT. #6
A. Subject to and eroding the General Aggregate Limit shown in the Declarations, for all sums which the insured
becomes legally obligated to pay as damages caused by "occurrences" under COVERAGE A (SECTION l), and for
all medical expenses caused by accidents under COVERAGE C (SECTION l), which can be attributed only to
ongoing operations at your construction projects away from premises owned by or rented to you (such ongoing
operations at such construction projects are hereinafter defined as "Your Projects"):
1. A separate Construction Project General Aggregate Limit applies to all of Your Projects, and that limit is
Equal to $2,000, 000
2. The Construction Project General Aggregate Limit is the most we will pay for the sum of all damages
under COVERAGE A, except damages because of "bodily injury" or "property damage" included in the
"products-completed operations hazard", and for medical expenses under COVERAGE C, which damages and
medical expenses can be attributed only to "Your Projects", regardless of the number of:
a. lnsureds;
The limits shown in the Declarations for Each Occurrence, Fire Damage and Medical Expense continue to apply.
However, such limits will be subject to the Construction Project General Aggregate Limit, as well as the General
Aggregate Limit shown in the Declarations.
B. For all sums which the insured becomes legally obligated to pay as damages caused by "occurrences" under
COVERAGE A (SECTION l), and for all medical expenses caused by accidents under COVERAGE C (SECTION l),
which cannot be attributed only to "Your Projects":
1. Any payments made under COVERAGE A for damages or under COVERAGE C for medical expenses shall reduce
the amount available under the General Aggregate Limit or the Products-Completed Operations Aggregate
Limit, whichever is applicable; and
2. Such payments shall not reduce the Construction Project General Aggregate Limit.
LD-21732 (01107) Copyright, lnsurance Services Office, lnc., 1996 Pagel of2
Case 4:10-cv-02931 Document 1-1 Filed in TXSD on 08/16/10 Page 45 of 57
C. When coverage for liability arising out of the "products-completed operations hazard" is provided, any payments for
damages because of "bodily injury" or "property damage" included in the "products-completed operations hazard" will
reduce the Products-Completed Operations Aggregate Limit, and not reduce the General Aggregate Limit nor the
Constructi on Proj ect General Aggregate Li mit.
D. lf any one or more of "Your Projects" has been abandoned, delayed, or abandoned and then restarted, or if the
authorized contracting parties deviate from plans, blueprints, designs, specifications or timetables, the project will still
be deemed to be the same construction project.
E. The provisions of Limits Of lnsurance (SECTION lll) not otherwise modified by this endorsement shall continue to
apply as stipulated.
Authorized Agent
Limits of lnsurance
Each Claim Limit $ 2,000,000
Aggregate Limit $ 2,000,000
Retroactive Date L2/OL/200s
Deductible Amount $ 1,000,000
(lf no entry appears above, the information required to complete this endorsement will be shown ìn the Declarations as applicable to
this endorsement.)
INSURING AGREEMENT .
.
We will pay under this endorsement those sums that the insured becomes legally obligated to pay as damages because of a claim or
"suit" brought by any employee, former employee, or their beneficiaries or legal representatives in connection wlth any negligent
error, omission, or breach of duty in the "administration" of your "employee benefits" programs.
We will have the right and the duty to defend any "suit" seeking those damages. But:
The amount we will pay for damages is limited as described in the Schedule as Limits of lnsurance;
We may investigate and settle any claim or "suit" at our discretion; and
Our right and duty to defend end when we have used up the applicable limit of insurance in the payment of judgments or
settlements under this endorsement.
This insurance applies to negligent errors, om¡ssions, breaches of duty, or misstatements only if a claim for damages is fìrst made
against any insured during the policy period or any Extended Reporting Period we provide under the paragraph titled Extended
Reporting Period.
This insurance does not apply to ,negligent errors, omissions, breaches of duty, or misstatements which occurred before the
Retroactive Date shown above, or which occur after the end of the policy period.
WHO IS AN INSURED .
With respect to this endorsement, Section ll - Who ls An lnsured is modified to include employees only while authorized to act in the
"administration" or your "employee benefits" programs.
EXCLUSIONS
lnsurance under this endorsement does not apply to any claim or "su¡t" arising out of:
any obl¡gation of the insured under a workers' compensation, disability benefits or unemployment compensation law or any
similar law;
any termination of employment;
any advice given by you to your "employees" to participate or not to participate in stock subscription plans; or
any actual or alleged error or omission or breach of duty, committed or alleged to have been committed by a trustee, in the
discharge of fiduciary duties, obligations or responsibilities imposed by the Federal Employee Retirement lncome Security Act of
1974 or Title X of the Consolidated Omnibus Budget Reconciliation Act of 1985 (Public Law 99-272) or Section 9319 of the
Omnibus Budget Reconciliation Act of 1986 (Public Law 99-509) or any amendments to these Acts.
LIMITS OF INSURANCE
The Limits of lnsurance shown in the Schedule of this endorsement and the rules below, fix the most we will pay regardless of the
number of:
lnsureds;
The Aggregate Limit is the most we will pay for the sum of all damages under this endorsement.
The Each Claim Limit is the most we will pay for damages arising out of any one claim or "suit".
The Limits of lnsurance apply separately to each consecutive annual period and to any remaining period of less than 12 months,
starting with the beginning of the policy period shown in the Declarations, unless the policy period is extended after issuance for an
additional period of less than 12 months. ln that case, the additional period will be deemed part of the last preceding period for
purposes of determining the Limits of lnsurance.
DEDUCTIBLE
A Deductible in the amount in the Schedule of this endorsement applies to each claim covered by this endorsement. We will
subtract this amount from the amount of damages payable fór each claim.
ADDITIONAL DEFINITIONS
"Employee benefits" means group life insurance, group accident or health insurance, profit sharing plans, pension plans,
"employee" stock subscription plans, "employee" travel, vacation, or savings plans, workers compensation, unemployment
insurance, social security and disability benefits insurance, and any other similar benefit program.
"Administration" means any of the following acts that you do or authorize a person to do:
Effecting enrollment, termination or cancellation of "employees" under your "employee benefits" programs.
The inability of "employee benefit" programs to meet their obligation due to insolvency.
LD-9863a Page 2 of 3
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1. We will automatically provide an Extended Reporting Period as described in paragraph 2. and 3. below if:
(1) Has a Retroactive Date later than the date shown on this endorsement; or
(2) Does not apply to errors, omissions, breaches of duty, or misstatements on a claims-made basis-
2. The Extended Reporting Period does not extend the policy period or change the scope of coverage provided. lt applies only to
claims for errors, omissions, breaches of duty, or misstatements that occur before the end of the policy period but not before
the Retroactive Date shown on this endorsement.
3. The Extended Reporting Period is automatically provided without additional charge. This period starts with the end of the
policy period and lasts for Five years.
The Extended Reporting Period does not apply to claims that are covered under any subsequent insurance you purchase, or
that would be covered but for exhaustion of the amount of insurance applicable to such claims.
4. The Extended Reporting Period does not reinstate or increase the Limits of lnsurance.
Authorized Agent
LD-9863a Page 3 of 3
Case 4:10-cv-02931 Document 1-1 Filed in TXSD on 08/16/10 Page 49 of 57
POLICY NUMBER: HDO G24940354 ENDT. #8
EXCLUSION - ASBESTOS
Named lnsured M-I , L.I,. C. Endorsement Number
I
Policy Symbol Policy Number Policy Period Eff. Date of Endorsement
HDO c24940354 04/OL/2OL0 to 04/0L/20LL
lssued By (Name of lnsurance Company)
ACE American Insurance Companv
¡nserttheoolicvnumber. Theremainderoftheinformationistobecompletedonlvwhenthisendorsementisissuedsubsequenttothepreparationofthe
Authorized Agent
LD-3R16 (Ed. 3/87) Printed in U.S.A. Reprinted in part with permission of lnsurance Serv¡ce Office, lnc., 1985
Case 4:10-cv-02931 Document 1-1 Filed in TXSD on 08/16/10 Page 50 of 57
POLICY NUMBER: HDO G24940354 ENDT. #9
EXCLUSION
EXTREMELY LOW FREQUENCY ELECTROMAGNETIC FIELDS IELF.EMF
Namedlnsured M-I, L.T,.C. Endorsement Number
9
Policy Symbol Policy Number Policy Period Effective Date of Endorsemenl
HDO G24940354 04/oL/2OL0 to 04/OL/2OLt
lssued By (Name of lnsurance Company)
ACE American Insurance Company
lnsert the policy number. The remainder of the information is to be completed only when this endorsement is issued subsequent to the preparation of the policy.
This insurance does not apply to, and we shall have no duty of any kind with respect to, any injury, damage,
expense, cost, loss, liability or legal obligation arisíng out of or allegedly ar¡sing òut of, or in any way related to, any
exposure, other than an instantaneous or abrupt exposure that,results in electrocution, electric shock or skin
burning, to "extremely low frequency electromagnetic fields," or "ELF-EMF."
"Extremely low frequency electromagnetic fields," or "ELF-EMF," means the 60-Hertz power frequency electric and
magnetic fields or invisible lines of force that occur wherever electricity is present.
This exclusion applies, but is not limited, to any injury, damage, expense, cost, loss, liability or legal obligation to
trest for, monitor, abate, weaken, control or take any other remedial action w¡th respect to "ELF-EMF"
The addition of this endorsement does not imply that other policy provisions, including but not limited to any
pollution exclusion, do not othen¡vise preclude or exclude coverage for "ELF-EMF" related injury, damage,
expense, cost, loss, liability or legal obligation.
Author¡zed Agent
EXCLUSION . LEAD
Named lnsured M-I, L. L. C. Endorsement Number
10
Policy Symbol Policy Number Policy Period Effective Date of Endorsemenl
HDO e24940354 04/0L/20t0 to 04/0L/20LL
lssued By (Name of lnsurance Company
ACE American Insurance Company
lnsert the policy number. The remainder of the information is to be completed only when this endorsement is issued subsequent to the preparation of the policy
This insurance does not apply to, and we shall have no duty of any kind with respect to, any injury, damage, expense,
cost, loss, liability or legal obligation arising out of or allegedly arís¡ng out of or in any way related to the toxic properties
ofleadorlead-containingproductS,mater¡alSorSUbStanceS.
This exclusion applies to all forms of lead, including but not limited to solid, liquid, vapor and fumes.
t,
This exclusion applies, but is not limited, to any injury, dãmãge, expense, cost, loss, liability or legal obligation to test
for, monitor, abate, remove, or take any other remedial action with respect to lead or lead-containing products, materials
or substances.
The addition of this endorsement does not lmply that other policy provisions, including but not limited to any pollution
exclusion, do not also exclude coverage for lead-related injury, damage, expense, cost, loss, liability or legal obligation.
Authorized Agent
MTBE EXCLUSION
This insurance does not apply to any injury, damage, expense, cost, loss, demand, claim, liab'ility or legal obligation arislng
out of, resulting from or in any way related to actual, alleged or threatened discharge, dispersal, seepage, migration,
release, escape, spill, leak, handling, sale, distribution, manufacture, remediation, disposal, monitoring, testing,
investigation, treatment, neutralization or detoxifìcation of Methyl-Tertiary-Butyl Ether or Methyl-Tert-Butyl Ether ("MTBE");
or any product, substance, or wastes containing MTBE; or any daughter or degrádation products of MTBE.
The addition of this endorsement does not imply that other policy provisions, inc[r.rding but not limited to any pollution
exclusion, do not also exclude coverage for MTBE related injury, damage, expense, cost, loss, liability, or legal obligation.
Authorized Representative
n permrssron nc.,
Case 4:10-cv-02931 Document 1-1
POLICY NUMBER: HDO G24940354
Filed in TXSD on 08/16/10 Page 53 of 57
ENDT. #I2
Schedule
(lf no information is filled in, the schedule shall read: "Al! persons or entities added as additional insureds
through an endorseihent with the term ;'Additional lnsured', in the tiile)
For organizations that are listed in the Schedule above that are also an Additional lnsured under an endorsement attached
to this policy, the following is added to Section lV.4.a:
lf other insurance is available to an insured we cover under any of the endorsements listed or described above (the
"Additional lnsured") for a loss we cover under this policy, this inõurance will apply to such loss
on a primary basis ànd
we will not seek contribution from the other insurance available to the Additional lnsured.
Authorized Agent
Case 4:10-cv-02931 Document 1-1 Filed in TXSD on 08/16/10 Page 54 of 57
POLICY NUMBER: HDO G24940354 ENDT. #13
Subparagraph (2) of Exclusion 2.g of Coverage 1.4., Bodily lnjury and Property Damage t-iáUitity is deteted in its
entirety and replaced by the following:
Authorized Agent
This endorsement replaces any pollution exclusion and amends all insurance provided under the
following:
This insurance does not apply to any injury, damage, expense, cost, loss, liability or legal obligation arising out of or in any
way related to "pollution", however caused.
"Pollution" means the actual, alleged, or potential presence in or introduction into the environment of any "pollutants", if
such "pollutants" have, or are alleged to have, the effect of making the:environment impure, harmful, oi dangerous.
Environment includes any air, land, structure or the air therein, watercourse or water, including underground watér, and
biota.
"Pollutants" means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids,
alkalis, chemicals, bacteria, virus, and waste, as defined herein.
"Hostile fire" means a fire which, during the policy period, becomes uncontrollable or breaks out from where it was intended
to be.
This exclusion does not apply to "Bodily lnjury'or "Property Damage" caused by "pollution" if the "pollution":
2. commenced abruptly and instantaneously and can be clearly identifìed as having commenced entirely at a specific time
on a specific date during the policy period; and
3. is caused ':
a. solely by fire, lightning, explosion, windstorm, vandalism, malicious mischief, riot or civil commotion, sprinkler leakage,
or collision or upset of a motor vehicle or an aircraft or arises out of "your product" included in the "products-compteiãO
operations hazard'; or
b. by any peril other than those listed in subparagraph 3.a. above, provided that the discharge, dispersal, seepage,
migration, release or escape of "pollutants":
a. premises, site or location wh¡ch is owned by or occup¡ed by, or rented or loaned to, any insured;
or
b. premises, site or location on which any insured or any contractors or subcontractors working directly or indirectly on any
insured's behalf are performing operations if the "pollutants" are brought on or to the premises, site or location in
connection with such operations by such insured, contractor or subcontractor; and
(2) is known by any insured within 72 hours of the commencement of the "pollution"; and
1. loss of, damage to or loss of use of property directly or indirectly resulting from subsurface operations of the insured,
and/or removal of, loss or damage to subsurface oil, gas or other substance;
2. any injury, damage, expense, cost, loss, liability or legal obligation arising out of or'in, any:'lrr¡ay related to actual or
alleged "pollution" or contamlnation at or from a waste site, meaning the part of any premises, site or location which is or
was at the time used by any insured or by others for the storage, disposal,:processing or treatment of waste of any kind.
Waste site includes but is not limited to any landfìll, pit or dumping ground, treatment,'istorage and disposal facility, lagoon
or pond, drum storage or disposal area, disposal pipe outfall, injection well or any other repository of "waste" of any kind,
whether permitted or not. ,
,, " ,,
Notwithstanding the foregoing, we shall have no duty to defend "rui,", claim or proceeding arising out of or in any way
related to "pollution". "ny
Authorized Agent
This insurance does not apply to any damages arising out of any professional services, including, but not limited to,
1. Medical,surgical,dental,x-ray,nursing,oranyotherhealthserviceortreatment,ortherelatedfurnishing
of food or beverages;
2. Any cosmetic, ear piercing, tonsorial, massage, physiotherapy, chiropody, hearing aid, optical or
optometrical service or treatment;
C. The handling or treatment of dead Uo¿ies ániiremains, including autopsies, organ donation or other
procedures. '
Authorized Agenl
EXHIBIT A
PilrtZ of 2
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POLICY NUMBER: HDO G24940354
Filed in TXSD on 08/16/10 Page 2 of 74
ENDT. #16
SECTION l. - Coverages, Coverage A. - Bodily injury and Property Damage Liability, 2. - Exclusions, is amended
to add:
Any liability for "bodily injury'' or "property damage" ar¡s¡ng out of the actual,
alleged or threatened exposure of person(s) or property to any radioactive matter
or any form of radiation.
SECTION l. - Coverages, Coverage B. - Personal and Advertising Liability, 2. - Exclusions, is amended to add:
Arising out of the actual, alleged or threatened exposure of person(s) or property to any radioactive matter or any
form of radiation.
Authorized Agent
lncludes copyrighted material of lnsurance Services Office, lnc. with its permission
Case 4:10-cv-02931 Document 1-2
POLICY NUMBER: HDO G24940354
Filed in TXSD on 08/16/10 Page 3 of 74
ENDT. #17
For the states and lines of business in which regulatory approval has been granted for the NCCI Large Risk Alternative
Rating Option, the ISO Large Risk Alternative Rating Option, or the independently filed ACE Large Risk Rating plan, the
premiums for this policy will be adjusted in accordance with the Notice of Election, signed by you.
Authorized Agent
age
Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 4 of 74
POLICY NUMBER: HDO c24940354 ENDT. #I8
coMMERGTAL cENERAL
0'âååiü
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
SCHEDULE
SCHEDULE
lnformation required to complete this Schedule, if not shown above, will be shown in the Declarations.
SCHEDULE
lnformation required to complete this Schedule. if not shown above. will be shown in the Declarations.
g. Products which, after distribution or sale by (2) Such inspections, adjustments, tests or
you, have been labeled or relabeled or used servicing as the vendor has agreed to
as a container, part or ingredient of any other make or normally undertakes to make in
thing or substance by or for the vendor; or the usual course of business, in
connection with the distribution or sale of
h. "Bodily injury" or "property damage" arising out the products.
of the sole negligence of the vendor for its
own acts or omissions or those of its 2. This insurance does not apply to any insured
employees or anyone else acting on its person or organization, from whom you have
behalf. However, this exclusion does not acquired such products, or any ingredient, part
apply to: or container, entering into, accompanying or
containing such products.
(1) The exceptions contained in Sub-
paragraphs d. or f.; or
lf aggregate insured losses attributable to terrorist "Certified act of terrorism'l means an act that is certi-
acts certified under the federal Terrorism Risk lnsur- fied by the Secretary of the Treasury, in concurrence
ance Act exceed $100 billion in a Program year with the Secretary of State and the Attorney General
(January 1 through December 31) and we have met of the United States, to be an act of terrorism pursu-
our insurer deductible under the Terrorism Risk ln- ant to the féderal Terrorism Risk lnsurance Act. The
surance Act, we shall not be liable for the payment of criteria contained in the Terrorism Risk lnsurance Act
any portion of the amount of such losses that ex- for a I'certified act of terrorism" include the following:
ceeds $100 billion, and in such case insured losses
up to that amount are subject to pro rata allocation in
l. The act resulted in insured losses in excess of 95
million in the aggregate, attributable to all types of
accordance with procedures established by the Sec-
insurance subject to the Terrorism Risk lnsurance
retary of the Treasury. ,:Act; and
2. The act is a violent act or an act that is dangerous
to human life, property or infrastructure and is
committed by an individual or individuals as part
of an effort to coerce the civilian population of the
United States or to influence the policy or affect
the conduct of the United States Government by
coercion.
SCHEDULE
(lf no entry appears above, information required to complete this endorsement will be shown in the Declarations
as applicable to this endorsement.)
With respect to operations performed for, or affecting, Paragraph f. does not include that part of any
a Scheduled Railroad at a Designated Job Site, the contract or agreement:
definition of "insured contract" in the Definitions sec-
tion is replaced by the following:
(1) That indemnifies an architect, engineer or
surveyor for injury or damage arising out
9. "lnsured Contract" means: of:
a. A contract for a lease of premises. However, (a) Preparing, approving or failing to pre-
that portion of the contract for a lease of prem- pare or approve maps, shop drawings,
ises that indemnifies any person or organiza- opinions, reports, surveys, field orders,
tion for damage by fire to premises while change orders or drawings and specifi-
rented to you or temporarily occupied by you cations; or
with permission of the owner is not an "insured
contract";
(b) Giving directions or instructions, or
failing to give them, if that is the primary
b. A sidetrack agreement; cause of the injury or damage;
c. Any easement or license agreement; (2) Under which the insured, if an architect,
d. An obligation, as required by ordinance, to engineer or surveyor, assumes liability for
indemnify a municipality, except in connection an injury or damage arising out of the in-
with work for a municipality; sured's rendering or failure to render pro-
fessional services, including those listed in
e. An elevator maintenance agreement; Paragraph (1) above and supervisory, in-
f. That part of any other contract or agreement spection, architectural or engineering activi-
pertaining to your business (including an in- ties.
demnification of a municipality in connection
with work performed for a municipality) under
which you assume the tort liability of another
party to pay for "bodily injury" or "property
damage" to a third person or organization. Tort
liability means a liability that would be imposed
by law in the absence of any contract or
agreement.
SCHEDULE
(lf no entry appears above, information required to complete this Schedule will be shown in the Declarations as
applicable to this endorsement.)
For any statutorily permitted reason other than nonpayment of premium, the number of days required for notice
of cancellation, as provided in paragraph 2. of either the CANCELLATION Common Policy Condition or as
amended by an applicable state cancellation endorsement, is increased to the number of days shown in the
Schedule above.
A. The following exclusion is added to paragraph 2., B. The following exclusion is added to paragraph 2.,
Exclusions of Section I - Goverage A - Bodily Exclusions of Section I - Goverage B per-
lnjury And Property Damage Liability: sonal And Advertising tnjury Liability:
-
This insurance does not apply to: This insurance does not apply to:
"Bodily injury" to: "Personal and advertising injury" to:
(1) A person arising out of any: (1) A person arising out of any:
(a) Refusalto employ that person; (a) Refusal to empioy that person;
(b) Termination of that person's employment; (b) Terminaiøn of that person's employment;
or or :
":'
(c) Employment-related practices, policies, (c) Employment-related practices, policies,
acts or omissions, such as coercion, demo- acts or:omissions, such as coercion, demo-
tion, evaluation, reassignment, discipline, , tion, evaluation, reassignment, discipline,
defamation, harassment, humiliation, dis- defamation, harassment, humiliation, dis-
crimination or malicious prosecution di- crimination or malicious prosecution di-
rected at that person; or rected at that person; or
(2) The spouse, child, parent, brother or sister of (2) The spouse, child, parent, brother or sister of
that person as a consequence of "bodily injury" that person as a consequence of "personal and
to that person at whom any of the employment- advertising injury" to that person at whom any
related practices described in paragraphs (a), of the employment-related practices describeð
(b), or (c) above is directed. in Paragraphs (a), (b), or (c) above is directed.
This exclusion applies: This exclusion applies:
(1) Whether the injury-causing event described in (1) Whether the injury-causing event described in
Paragraphs (a), (b) or (c) above occurs before Paragraphs (a), (b) or (c) above occurs before
employment, during employment or after em- employment, during employment or after em-
ployment of that person; ployment of that person;
(2) Whether the insured may be liable as an em- (2) Whether the insured may be liable as an em-
ployer or in any other capacity; and ployer or in any other capacity; and
(3) To any obligation to share damages with or (3) To any obligation to share damages with or
repay someone else who must pay damages repay someone else who must pay damages
because of the injury. because of the injury.
A. The following exclusion is added: 2. "Certified act of terrorism" means an act that is
This insurance does not apply to:
certified by the:Secretary of the Treasury, in
concurrence with'the Secretary of State and
TERRORISM the Attorney General of the United States, to
"Any injury or damage" arising, directly or indi- be an act of terrorism pursuant to the federal
rectly, out of a "certified act of terrorism". Terrorism Risk lnsurance Act. The criteria con-
tained in the Terrorism Risk lnsurance Act for
B. The following definitions are added:
g "certified act of terrorism" include the follow-
1. For the purposes of this endorsement, "any tng:
injury or damage" means any injury or damage
covered under any Coverage Part to which this
a. The act resulted in insured losses in excess
of $5 million in the aggregate, attributable
endorsement is applicable, and includes but is to all types of insurance subject to the Ter-
not limited to "bodily injury", "property dam- rorism Risk lnsurance Act; and
age", "personal and advertising injury", j'injury"
or "environmental damage" as may'be defined b. The act is a violent act or an act that is
in any applicable Coverage Part. dangerous to human life, property or infra-
structure and is committed by an individual
or individuals as part of an effort to coerce
the civilian population of the United States
or to influence the policy or affect the con-
duct of the United States Government by
coercion.
SCHEDULE
(lf no entry appears above, information required to complete this endorsement will be shown in the Declarations
as applicable to this endorsement.)
With respect to any premises or classification shown 2. The following is added to Section I - Supple-
in the Schedule: mentary Payments:
1. Section I - Coverage C - Medical Payments h. Expenses incurred by the insured for first
does not apply and none of the references to it aid administered to others at the time of an
in the Coverage Part apply: and accident for "bodily injury" to which this in-
surance applies.
The following exclusion is added to Paragraph 2., 2. The reporting of or reliance upon any such test,
Exclusions of Section I - Coverage A - Bodily evaluation, consultation or advice; or
lnjury And Property Damage Liability and Para- 3, An error, omission, defect or deficiency in ex-
graph 2., Exclusions of Section I - Goverage B -
perimental data or the insured's interpretation of
Personal And Advertising lnjury Liability:
that data.
This insurance does not apply to "bodily injury", "prop-
erty damage" or "personal and adverlising injury"
arising out of:
1. An error, omission, defect or deficiency in:
a. Any test performed; or
b. An evaluation, a consultation or advice given,
by or on behalf of any insured;
A. The following exclusion is added to Paragraph 2. B. The following exclusion is added to Paragraph 2.
Exclusions of Section I - Goverage B - Personal
Exclusions of Section I - Coverage A - Bodily
And Advertising lnjury Liability:
Injury And Property Damage Liability:
2. Exclusions 2. Exclusions
This insurance does not apply to: This insurance does not apply to:
Fungi Or Bacteria Fungi Or Bacteria
a. "Bodily injury" or "property damage" which a. "Personal and advertising injury" which
would not have occurred, in whole or in would nót have taken place, in whole or in
part, but for the actual, alleged or threat- part, but for the actual, alleged or threat-
ened inhalation of, ingestion of, contact ened inhalation of, ingestion of, contact
with, exposure to, existence of, or presence with, exBosure to, existence of, or presence
of, any "fungi" or bacteria on or within a of any "fungi" or bacteria on or within a
building or structure, including its contents, building or structure, including its contents,
regardless of whether any other cause,
,, regardless of whether any other cause,
event, material or product contributed con- event, material or product contributed con-
currently or in any sequence to such injury , currently or in any sequence to such injury.
or damage. b. Any loss, cost or expense arising out of the
b. Any loss, cost or expenses arising out of abating, testing for, monitoring, cleaning
the abating, testing for, monitoring,, clean- up, removing, containing, treating, detoxify-
ing up, removing, containing, treating; de- ing, neutralizing, remediating or disposing
toxifying, neutralizing, remediating or dis- of, or in any way responding to, or assess-
posing of, or in any way responding to, or ing the effects of, "fungi" or bacteria, by
assessing the effects of, 'lfungi,!'or bacteria, any insured or by any other person or en-
by any insured or by any other'person or tity.
entitY. C. The following definition is added to the Defini-
This exclusion does not aþþly to any "fungi" or tions Section:
bacteria that are, are on, or are contained in, a "Fungi" means any type or form of fungus, includ-
good or product íntended for bodily consump- ing mold or mildew and any mycotoxins, spores,
tion. scents or byproducts produced or released by
fungi.
SCHEDULE
(lf no entry appears above, information required to complete this endorsement will be shown in the Declarations
as applicable to this endorsement.)
A. With respect to the contract or agreement desig- (2) Liability for "personal and advertising
nated in the Schedule above, Subparagraph e. of injury" if:
Paragraph 2. Exclusions of Section I - Cover- (a) The liability pertains to your busi-
age B - PersonalAnd Advertising lnjury Liabil- ness and is assumed in the des-
ity is replaced by the following: ignated contract or agreement
2. Exclusions shown in the Schedule in which
This insurance does not apply to:
you assume the tort liability of
another. Tort liability means a li-
e. Contractual Liability ability that would be imposed by
"Personal and advertising injury" for which law in the absence of any con-
the insured has assumed liability in a con- tract or agreement;
tract or agreement. (b) The "personal and advertising
This exclusion does not apply to: injury" occurs subsequent to the
execution of the designated con-
(l) Liability for damages that the insured tract or agreement shown in the
would have in the absence of the
Schedule; and
contract or agreement; or
(c) The "personal and advertising
injury" arises out of the offenses
of false arrest, detention or im-
prisonment.
Solely for the purposes of liability so as- 5. The indemnitee and the insured ask us to
sumed in such designated contract or conduct and control the defense of that indem-
agreement, reasonable attorney fees nitee against such "suit" and agree that we can
and necessary litigation expenses in- assign the same counsel to defend the insured
curred by or for a party other than an in- and the indemnitee; and
sured are deemed to be damages be- 6. The indemnitee:
cause of "personal injury" described in
Paragraph A.2.e.(2)(c) above, provided: a. Agrees in writing to:
(i) Liability to such party for, or for (1) Cooperate with us in the investigation,
the cost of, that party's defense settlement or defense of the "suit";
has also been assumed in the (2) lmmediately send us copies of any
same designated contract or demands, notices, summonses or legal
agreement; and papers received in connection with the
(ii) Such attorney fees and litigation "suit";
expenses are for defense of that (3) Notify any other insurer whose coverage
party against a civil or alternative is available to the indemnitee; and
dispute resolution proceeding in
which damages to which this in-
(4) Cooperate with us with respect to coor-
surance applies are alleged.
dinating other,applicable insurance
available to the indemnitee; and
B. With respect to the contract or agreement desig-
nated in the Schedule above, the following is b. Provides us with written authorization to:
added to Section I - Supplementary Payments (1) Obtain records and other information
- Coverages A And B: related to the "suit"; and
lf we defend an insured against a "suit" and an in- (2) Conduct and control the defense of the
demnitee of the insured is also named as a party indemnitee in such "suit".
to the "suit", we will defend that indemnitee if all of So long as the above conditions are met, attor-
the following conditions are met: neys fees incurred by us in the defense of that in-
1. The "suit" against the indemnitee seeks dam- demnitee, necessary litigation expenses incurred
ages for which the insured has assumed tort li- by,us and necessary litigation expenses incurred
ability of the indemnitee in a designated con- by the indemnitee at our request will be paid as
tract or agreement shown in the Schedule, if Supplementary Payments. Notwithstanding the
such liability pertains to your business. Tort li- provisions of Paragraph A.2.e.(2) of this en-
ability means a liability that would be imposed dorsement, such payments will not be deemed to
by law in the absence of any contract or be damages for "personal and advertising injury"
agreement; as described in Paragraph 4.2.e.(2)(c) above and
will not reduce the limits of insurance.
2. This insurance applies to such liability as-
sumed by the insured; Our obligation to defend an insured's indemnitee
and to pay for attorneys fees and necessary litiga-
3. The obligation to defend, or the cost of the
tion expenses as Supplementary Payments ends
defense of, that indemnitee, has also been as-
when:
sumed by the insured in the same designated
contract or agreement; 1. We have used up the applicable limit of insur-
4. The allegations in the "suit" and the informa- ance in the payment of judgments or settle-
ments; or
tion we know about the offense are such that
no conflict appears to exist between the inter- 2. The conditions set forth above, or the terms of
ests of the insured and the interests of the in- the agreement described in Paragraph 6.
demnitee; above, are no longer met.
A. The following exclusion is added to Paragraph 2., B. The following exclusion is added to Paragraph 2.,
Exclusions of Section | - Coverage A
lnjury And Property Damage Liability:
- Bodily Exclusions of Section I - Coverage B - Per-
sonal And Advertising Injury Liability:
2. Exclusions 2. Exclusions
This insurance does not apply to: This insurance does not apply to:
Silica Or Silica-Related Dust Silica Or Silica-Related Dust
a. "Bodily injury" arising, in whole or in part, a. "Personal and advertising injury" arising, in
out of the actual, alleged, threatened or wholê,or in part, out of the äctlal, alleled,
suspected inhalation of, or ingestion of, "sil- threatened or suspected inhalation of, in-
ica" or "silica-related dust". gestion of, contact with, exposure to, exis-
b. "Property damage" arising, in whole or in tence of, or presence of, "silica" or "silica-
part, out of the actual, alleged, threatened related dust".
or suspected contact with, exposure to, ex- b. Any loss, cost or expense arising, in whole
istence of, or presence of, "silica" or "silica- or in part, out of the abating, testing for,
related dust". monitoring, cleaning up, removing, contain-
c. Any loss, cost or expense arising, in whole ing, treating, detoxifying, neutralizing,
or in part, out of the abating, testing for, remediating or disposing of, or in any way
monitoring, cleaning up, removing, contain- responding to or assessing the effects of,
ing, treating, detoxifying, neutralizing, "silica" or "silica-related dust", by any in-
remediating or disposing of, or in any way sured or by any other person or entity.
responding to or assessing the effects of, C. The following definitions are added to the Defini-
"silica" or "silica-related dust", by any in- tions Section:
sured or by any other person or entity.
1. "Silica" means silicon dioxide (occurring in
crystalline, amorphous and impure forms), sil-
ica particles, silica dust or silica compounds.
2. "Silica-related dust" means a mixture or com-
bination of silica and other dust or particles.
SCHEDULE
rL 09 85 01 08
This premium is the total Certified Acts premium attributable to the following Coverage Part(s), Goverage
Form(s) and/or Policy(s):
lnformation reouired to comolete this Schedule. if not shown above. will be shown in the Declarations.
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
policy remain unchanged.
Authorized Agent
tL 00 21 09 08
L The insurance does not apply: B. Under any Medical Payments coverage, to
A. Under any Liability Coverage, to "bodily injury" expenses incurred with respect to "bodily in-
jury", resulting from the "hazardous propefties"
or "property damage":
of "nuclear material" and arising out of the op-
(1) With respect to which an "insured" under eration of a "nuclear facility" by any person or
the policy is also an insured under a nu- organization.
clear energy liability policy issued by Nu-
clear Energy Liability lnsurance Associa- C. Under any Liability Coverage, to "bodily injury"
tion, Mutual Atomic Energy Liability or "property damage" resulting from "hazard-
ous properties" of "nuclear material", if:
Underwriters, Nuclear lnsurance Associa-
tion of Canada or any of their successors, (1) The "nuclear material" (a) is at any "nuclear
or would be an insured under any such pol- facility" owned by, or operated by or on be-
icy but for its termination upon exhaustion half of, an "insured" or (b) has been dis-
of its limit of liability; or charged or dispersed therefrom;
(2) Resulting from the "hazardous properties" (2) The "nuclear material" is contained in
of "nuclear material" and with respect to "spent fuel" or "waste" at any time pos-
which (a) any person or organization is re- sessed, handled, used, processed, stored,
quired to maintain financial protection pur- transported or disposed of, by or on behalf
suant to the Atomic Energy Act of 1954, or of an "insured"; or
any law amendatory thereof, or (b) the "in- (3) The "bodily injury" or "property damage"
sured" is, or had this policy not been issued arises out of the furnishing by an "insured"
would be, entitled to indemnity from the of services, materials, parts or equipment
United States of America, or any agency in connection with the planning, construc-
thereof, under any agreement entered into tion, maintenance, operation or use of any
by the United States of America, or any "nuclear facility", but if such facility is lo-
agency thereof, with any person or organi- cated within the United States of America,
zation. its territories or possessions or Canada, this
exclusion (3) applies only to "property
damage" to such "nuclear facility" and any
property thereat.
"Personal and advertising injury" arising out of the unauthorized use of another's name or product in
your e-mail address, domain name or "metatag", or any other similar tactics to mislead another's
potential customers.
(2) Warlike action by a military force, in- (2) Warlike action by a military force, in-
cluding action in hindering or defending ':' cluding action in hindering or defending
against an actual or expected attack, by against an actual or expected attack, by
any government, sovereign or other au- any government, sovereign or other au-
thority using military personnel or other , thority using military personnel or other
agents; or ' agents; or
(3) Insurrection, rebellion, revolution, (3) lnsurrection, rebellion, revolution,
usurped power, or action taken by gov- usurped power, or action taken by gov-
ernmental authority in hindering or de- ernmental authority in hindering or de-
fending against any of these. fending against any of these.
c. Exclusion h. under Paragraph 2., Exclusions of
Section I - Coverage C - Medical Payments
does not apply. Medical payments due to war are
now subject to Exclusion g. of Paragraph 2., Ex-
clusions of Section I - Goverage C - Medical
Payments since "bodily injury" arising out of war
is now excluded under Coverage A.
rL 01 21 06 03
SCHEDULE
Attorney's Fees
for a Judoment of $ Additional Premium $
(lf no entry appears above, information required to complete this endorsement will be shown in the Declarations
as applicable to this endorsement.)
ln any "suit" we defend in Alaska, our obligation un- B. However, if a premium and a judgment amount
der Supplementary Payments to pay all costs taxed are shown in the Schedule, we will pay, instead of
against the "insured" is amended by the following: the attorney's fees provided in Paragraph A.
above, that portion of the attorney's fees awarded
A. We will pay that portion of the attorney's fees as costs which do not exceed the amount allowed
awarded as costs which does not e-rceed the
for a contested case in Civil Rule 82 for the judg-
amount allowed for a 'contested cáse in the ment amount shown in the Schedule.
schedule of attorney's'fees contained in Alaska
Civil Rule 82 for a judgment equal to the applica-
ble Limit of lnsurance.
tL 02 80 09 08
A. The Gancellation Common Policy Condition is b. 20 days before the effective date of cancel-
replaced by the following: lation if we cancel for:
l. The first Named lnsured shown in the Declara- (1) Nonpayment of premium; or
tions may cancel this policy by mailing to us (2) Failure or refusal of the insured to pro-
advance written notice of cancellation. vide the information necessary to con-
2. We may cancel this policy by mailing to you firm exposure or determine the policy
and the agent or broker of record written notice premium; or
of cancellation. Such notice, stating the reason c. 60 days before the effective date of cancel-
for cancellation, must be sent by first class lation if we cancel for any other reason.
mail at least:
3. We will mail our notice to your last known ad-
a. 10 days before the effective date of cancel- dress and the last known address of the agent
lation if we cancel for: or broker of record.
(1) Conviction of the insured of a crime 4. Notice of cancellation will state the effective
having as one of its necessary elements date of cancellation. The policy period will end
an act increasing a hazard insured on that date.
against; or
5. A post office certificate of mailing or certified
(2) Fraud or material misrepresentation by mail receipt will be sufficient proof of mailing
the insured or a representative of the in- of notice.
sured in obtaining the insurance or by
the insured in pursuing a claim under
this policy; or
6. lf this policy is cancelled, we will return any (b) Within 45 days of your request to
premium refund due to the agent or broker of cancel;
record, or directly to the first Named lnsured, whichever is later.
or, if applicable, to the premium finance com-
pany. lf: lf the policy is selected for audit, we will
complete the audit within 45 days of re-
a. We cancel, the refund will be the pro rata ceipt of the request for cancellation. The
unearned premium. The refund will be re- refund will be returned within 45 days of
turned or credited before the effective date completion of an audit, or the effective
of cancellation. However, if cancellation is date of cancellation, whichever is later.
for:
B. The following is added and supersedes any provi-
(1) Nonpayment of premium; sion to the contrary:
(2) Conviction of the insured of a crime Nonrenewal
having as one of its necessary elements
an act increasing a hazard insured 1. lf we decide not to renew this policy, we will
against; mail written notice of nonrenewal, by first class
mail, to you and the agent or broker of record
(3) Discovery of fraud or material misrepre- at least 45 days before:
sentation made by the insured or a rep-
resentative of the insured in obtaining a. The expiration date; or
the insurance or by the insured in pursu- b. The anniversary date if this policy has been
ing a claim under the policy; or written for more than one year or with no
(4) Failure or refusal of the insured to pro- fixed expiration date.
vide the information necessary to con- 2. We need not mail notice of nonrenewal if:
firm exposure or necessary to
a. We have manifested in good faith our will-
determine the policy premium;
ingness to renew; or
any unearned premium shall be returned or
credited within 45 days after the cancella-
b. The first Named lnsured has failed to pay
any premium required for this policy; or
tion notice is given; or
b. The first Named lnsured cancels, the re-
c. The firstNamed lnsured fails to pay the
premium required for renewal of this policy.
fund:
(1) Will be the pro rata unearned premium 3. Any notice of nonrenewal will be mailed to
your last known address and the last known
minus a cancellation fee of 7.5% of the
pro rata unearned premium. However, address of the agent or broker of record. A
post office certificate of mailing or certified
we will not retain this cancellation fee if
this policy is cancelled:
mail receipt will be sufficient proof of mailing
of notice.
(a) And rewritten with us or in our com-
pany group; c. The following Condition is added:
(b) At our request;
Notice Of Premium Or Coverage Ghanges On
Renewal
(c) Becauseyou no longer have a finan-
lf the premium to renew this policy increases more
cial or insurable interest in the prop-
erty or buSiness operation that is the
than 10% for a reason other than an increase in
coverage or exposure basis, or if after the renewal
subject of this insurance; or
there will be a material restriction or reduction in
(d) After the first year for a prepaid pol- coverage not specifically requested by the
icy written for a term of more than insured, we will mail written notice to your last
one year; or knou¡n address and the last known address of the
(2) Will be returned or credited: agent or broker of record at least 45 days before:
(a) By the effective date of cancellation; 1. The expiration date; or
or 2. The anniversary date if this policy has been
written for more than one year or with no fixed
expiration date.
CALIFORNIA CHANGES
This endorsement modifies insurance provided under the following:
tL 02 70 09 08
A. Paragraphs 2. and 3. of the Cancellation Com- 3. All:Policies ln Effect For More Than 60
mon Policy Condition are replaced by the follow- Days
ing:
a, lf this policy has been in effect for more
2. All Policies ln Effect For 60 Days Or Less than 60 days, or is a renewal of a policy we
lf this policy has been in effect for 60 days or issued, we may cancel this policy only upon
less, and is not a renewal of a policy we have the occurrence, after the effective date of
previously issued, we may cancel this policy by the policy, of one or more of the following:
mailing or delivering to the first Named lnsúr.eð
at the mailing address shown in the policy and
(1) Nonpayment of premium, including
payment due on a prior policy we issued
to the producer of record, advance written no- and due during the current policy term
tice of cancellation, stating the reáson for can- covering the same risks.
cellation, at least:
(2) Discovery of fraud or material misrepre-
a. 10 days before the effective date of cancel- sentation by:
lation if we cancel fór:
(a) Any insured or his or her representa-
(l) Nonpaymentof pr:emium; or tive in obtaining this insurance; or
(2) Discovery of fraud by: (b) You or your representative in pursu-
(a) Any insured or his or her representa- ing a claim under this policy.
tive in obtaining this insurance; or (3) A judgment by a court or an administra-
(b) You or your representative in pursu- tive tribunal that you have violated a
ing a claim under this policy. California or Federal law, having as one
b. 30 days before the effective date of cancel-
of its necessary elements an act which
lation if we cancel for any other reason. materially increases any of the risks in-
sured against.
(4) Discovery of willful or grossly negligent B. The following provision is added to the Gancella-
acts or omissions, or of any violations of tion Common Policy Condition:
state laws or regulations establishing 7. Residential Property
safety standards, by you or your repre-
sentative, which materially increase any This provision applies to coverage on real
of the risks insured against. property which is used predominantly for resi-
dential purposes and consisting of not more
(5) Failure by you or your representative to than four dwelling units, and to coverage on
implement reasonable loss control re- tenants' household personal property in a resi-
quirements, agreed to by you as a con- dential unit, if such coverage is written under
dition of policy issuance, or which were one of the following:
conditions precedent to our use of a
padicular rate or rating plan, if that fail- Commercial Property Coverage Part
ure materially increases any of the risks Farm Coverage Part - Farm Property - Farm
insured against. Dwellings, Appurtenant Structures And House-
(6) A determination hold Personal Property Coverage Form
by the Commissioner of
lnsurance that the: a. lf such coverage has been in effect for 60
(a) Loss of, or changes in, our reinsur- days or less, and is not a renewal of cover-
age we previously., issued, we may cancel
ance covering all or part of the risk
would threaten our financial integrity
this coverage for anyz reason, except as
provided in b. and:'c, below.
or solvency; or
(b) Continuation of the policy coverage b. We ñìâ!',:.¡sf cancel this policy solely be-
cause the first Named lnsured has:
would:
(i) Place us in violation of California 1r) Áòceþted an offer of earthquake cover-
,,::':â9ei OI
Iaw or the laws of the state where
we are domiciled; or (2i :cail;lled or did not renew a policy
(ii) Threaten our solvency.
,", issued by the California Earthquake Au-
thority (bEA) that included an earth-
(7) A change by you or your representative ' ",': quake policy premium surcharge.
in the activities or property of the com-
However, we shall cancel this policy if the
mercial or industrial enterprise, which
first Named lnsured has accepted a new or
results in a materially added, increased
or changed risk, unless the added, 'in- , renewal policy issued by the CEA that in-
cludes an earthquake policy premium sur-
creased or changed risk is included in
charge but fails to pay the earthquake pol-
the policy.
icy premium surcharge authorized by the
b. We will mail or deliver advance wiitten CEA.
notice of cancellation, stating the reason for
cancellation, to the first Named lnsured, at
c. We may not cancel such coverage solely
because corrosive soil conditions exist on
the mailing address shown in the policy,
and to the producer of record, at least:
the premises. This Restriction (c.) applies
only if coverage is subject to one of the fol-
(1) 10 days before the effective date of lowing, which exclude loss or damage
cancellation if we cancel for nonpay- caused by or resulting from corrosive soil
ment of premium or discovery of fraud; conditions:
or
(1) Capital Assets Program Coverage Form
(2) 30 days before the effective date of (Output Policy);
cancellation if we cancel for any other
reason listed in Paragraph 3.a.
(2) Commercial Property Coverage Part -
Causes Of Loss - Special Form; or
(3) Farm Coverage Part - Causes Of Loss
Form - Farm Property, Paragraph D.
Covered Causes Of Loss - Special.
c. The following is added and supersedes any provi- (2) The Commissioner of lnsurance finds
sions to the contrary: that the exposure to potential losses will
threaten our solvency or place us in a
NONRENEWAL
hazardous condition. A hazardous con-
1. Subject to the provisions of Paragraphs C.2. dition includes, but is not limited to, a
and C.3. below, if we elect not to renew this condition in which we make claims
policy, we will mail or deliver written notice payments for losses resulting from an
stating the reason for nonrenewal to the first earthquake that occurred within the pre-
Named lnsured shown in the Declarations and ceding two years and that required a re-
to the producer of record, at least 60 days, but duction in policyholder surplus of at
not more than 120 days, before the expiration least 25% for payment of those claims;
or anniversary date. or
We will mail or deliver our notice to the first (3) We have:
Named lnsured, and to the producer of record,
at the mailing address shown in the policy.
(a) Lost or experienced a substantial
reduction in the availability or scope
2. Residential Property of reinsurance coverage; or
This provision applies to coverage on real (b) Experienced a substantial increase
property used predominantly for residential in the premium charged for reinsur-
purposes and consisting of not more than four ance coverage of our residential
dwelling units, and to coverage on tenants' property insurance policies; and
household property contained in a residential
the Commisé¡oner has approved a plan
unit, if such coverage is written under one of
for the nonrenewals that is fair and equi-
the following:
table, and that is responsive to the
Capital Assets Program (Output Policy) Cov- changes in our reinsurance position.
erage Part
c. We will not refuse to renew such coverage
Commercial Property Coverage Part solely because the first Named lnsured has
Farm Coverage Part - Farm Property - Farm cancelled or did not renew a policy, issued
Dwellings, Appurtenant Structures And House- by the California Earthquake Authority that
hold Personal Property Coverage Form included an earthquake policy premium
a. We may elect not to renew such coverage surcharge.
for any reason, except as provided in b., c. d. We will not refuse to renew such coverage
and d. below: solely because corrosive soil conditions ex-
b. We will not refuse to renew such coverage ist on the premises. This Restriction (d.)
solely because the first Named lnsured has applies only if coverage is subject to one of
accepted an offer of earthquake covèrage. the following, which exclude loss or dam-
age caused by or resulting from corrosive
However, the following applies only to in-
soil conditions:
surers who are associate participating in-
surers as established by Cal. lns. Code (1) Capital Assets Program Coverage Form
Section 10089.16. We may elect not to re- (Output Policy);
new such covêrage after the first Named (2) Commercial Property Coverage Part -
lnsured has äcceþted an offer of earth- Causes Of Loss - Special Form; or
quake coverage, if one or more of the fol-
lowing reasons applies:
(3) Farm Coverage Part
- Causes Of Loss
(f) The nonrenewal is based on sound
-
FormFarm Property, Paragraph D.
Covered Causes Of Loss - Special.
undenrvriting principles that relate to the
3. We are not required to send notice of nonre-
coverages provided by this policy and
newal in the following situations:
that are consistent with the approved
rating plan and related documents filed a. lf the transfer or renewal of a policy, with-
with the Department of lnsurance as re- out any changes in terms, conditions, or
quired by existing law; rates, is between us and a member of our
insurance group.
b. lf the policy has been extended for 90 days e. lf the first Named lnsured requests a
or less, provided that notice has been given change in the terms or conditions or risks
in accordance with Paragraph C.1. covered by the policy within 60 days of the
lf you have obtained replacement cover- end of the policy period.
age, or if the first Named lnsured has f. lf we have made a written offer to the first
agreed, in writing, within 60 days of the Named lnsured, in accordance with the
termination of the policy, to obtain that timeframes shown in Paragraph G.1., to re-
coverage. new the policy under changed terms or
d. lf the policy is for a period of no more than conditions or at an increased premium rate,
60 days and you are notified at the time of when the increase exceeds 25%.
issuance that it will not be renewed.
lL 02 28 09 07
THIS ENDORSEMENT GHANGES THE POLIGY. PLEASE READ IT GAREFULLY.
D. The following condition is added: Any decrease in coverage during the policy term
must be based on one or more of the following
INCREASE IN PREMIUM OR DECREASE IN
reasons:
COVERAGE
We will not increase the premium unilaterally or
1. Nonpayment of premium;
decrease the coverage benefits on renewal of this 2. A false statement knowingly made by the in-
policy unless we mail through first-class mail writ- sured on the application for insurance; or
ten notice of our intention, including the actual 3. A substantial change in the exposure or risk
reason, to the first Named lnsured's last mailing other than that indicated in the application and
address known to us, at least 45 days before the undenvritten as of the effective date of the pol-
effective date. icy unless the first Named lnsured has notified
us of the change and we accept such change.
lf notice is mailed, proof of mailing will be suffi-
cient proof of notice.
tL 02 62 09 08
A- Paragraph 4.1. of the Cancellation Common ' Our notice will state the effective date of
Policy Condition is replaced by the following: cancellation, which will be the later of the
1. The first Named lnsured shown in the Declara- : following:
tions may cancel this policy by mailing or de- (1) 10 days from the date of mailing or
livering to us advance written notice of cancel. delivering our notice, or
lation stating a future date on which the policy (2) The effective date of cancellation stated
is to be cancelled, subject to the following: in the first Named lnsured's notice to us.
a. lfonly the interest of the first Named ln- B. Paragraph 4.5. of the Cancellation Common
sured is affected, the effective date of can- Policy Condition is replaced by the following:
cellation will be either the date we receive
notice from the first Named lnsured or the 5. Premium Refund
date specified in the notice, whichever is a. lf this policy is cancelled, we will send the
later. However, upon receiving a written no- first Named lnsured any premium refund
tice of cancellation from the first Named ln- due.
sured, we may waive the requirement that
the notice state the future date of cancella-
b. lf we cancel, the refund will be pro rata,
except as provided in c. below.
tion, by confirming the date and time of
cancellation in writing to the first Named ln- c. lf the cancellation results from failure of the
sured. first Named lnsured to pay, when due, any
premium to us or any amount, when due,
b. lf by statute, regulation or contract this
under a premium finance agreement, then
policy may not be cancelled unless notice
the refund may be less than pro rata. Cal-
is given to a governmental agency, mort- culation of the return premium at less than
gagee or other third party, we will mail or
pro rata represents a penalty charged on
deliver at least 10 days notice to the first
unearned premium.
Named lnsured and the third party as soon
as practicable after receiving the first d. lf the first Named lnsured cancels, the
Named lnsured's request for cancellation. refund may be less than pro rata.
tion if this policy has been in effect 60 or more We may cancel by providing notice to the first
days and we cancel for a reason other than Named lnsured at least:
nonpayment of premium; or o 10 days before the effective date of cancel-
3. 45 days before the expiration date of this pol- lation if we cancel for nonpayment of pre-
icy if we decide to nonrenew, increase the mium; or
premium or limit or restrict coverage. o 45 days before the effective date of cancel-
D. The following provisions apply to insurance cover- lation if we cancel for any of the reasons
ing residential real property only provided under listed in b., c. or d. above.
the:
Capital Assets Program (Output Policy) Coverage
Part;
Commercial Property Coverage Part;
Farm Coverage Part;
lf the named insured is a natural person.
Condition 8. TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US (Section lV), does not apply
to COVERAGE C. MEDICAL PAYMENTS.
tL 02 61 09 07
A. Paragraph 2. of the Cancellation Common Policy (4) Unfavorable unden¡uriting factors, specific
Condition is replaced by the following: to you, exist that were not present at the in-
ception of this policy;
2.a. We may cancel this policy by mailing or deliv-
ering to the first Named lnsured written notice (5) A determination by the insurance commis-
of cancellation, stating the reasons for cancel- sioner that continuation of coverage could
lation, at least: place us in a hazardous financial condition
(1) 10 days before the effective date of cancel- or in violation of the laws of Kansas; or
lation if we cancel for nonpayment of pre- (6) A determination by the insurance commis-
mium. sioner that we no longer have adequate re-
insurance to meet our needs.
(2) 30 days before the effective date of cancel-
lation if we cancel for any other reason. B. The following is added and supersedes any condi-
tion to the contrary:
b. lf this policy has been in effect for 90 days or
more, or if it is a renewàl of a policy we issued, NONRENEWAL
we may cancel this policy only for one or more 1. lf we decide not to renew this policy, we will
of the following reasons: mail or deliver written notice of nonrenewal,
(1) Nonpayment of premium; stating the reasons for nonrenewal, to the first
(2) This policy was issued because of material Named lnsured at least 60 days prior to the
expiration of the policy.
misrepresentation;
(3) You or any other insured violated any of 2. Any notice of nonrenewal will be mailed or
the material terms and conditions of this delivered to the first Named lnsured's last
policy; mailing address known to us. lf notice is
mailed, proof of mailing will be sufficient proof
of notice.
tL 02 63 09 08
A. Paragraph 2. of the Cancellation Common Policy (3) Discovery of willful or reckless acts or
Condition is replaced by the following: omissions on your part which increase
any hazard insured against;
2. Cancellation Of Policies ln Effect For 60
Days Or Less (4) The occurrence of a change in the risk
lf this policy has been in effect for 60 days or which substantially increases any haz-
less, we may cancel this policy by mailing or ard insured against after insurance cov-
erage has been issued or renewed;
delivering to the first Named lnsured written
notice of cancellation, stating the ,reason for (5) A violation of any local fire, health,
cancellation, at least 14 days before the effec- safety, building, or construction regula-
tive date of cancellation. tion or ordinance with respect to any in-
B. The following is added to the Gancellation Com-
sured property or the occupancy thereof
mon Policy Condition:
which substantially increases any haz-
ard insured against;
7. Cancellation Of Policies ln Effect For More
(6) We are unable to reinsure the risk cov-
Than 60 Days
ered by the policy; or
a. lf this policy has been in effect for more (7) A determination by the commissioner
than 60 days or is a renewal of a policy we
issued, we may cancel this policy only for that the continuation of the policy would
place us in violation of the Kentucky in-
one or more of the following reasons:
surance code or regulations of the
(1) Nonpayment of premium; commissioner.
(2) Discovery of fraud or material misrepre-
sentation made by you or with your
knowledge in obtaining the policy, con-
tinuing the policy, or in presenting a
claim under the policy;
b. lf we cancel this policy based on Paragraph 3. lf notice of nonrenewal is not provided pursu-
7.a. above, we will mail or deliver a written ant to this Condition, coverage under the same
notice of cancellation to the first Named ln- terms and conditions shall be deemed to be
sured, stating the reason for cancellation, renewed for the ensuing policy period upon
at least: payment of the appropriate premium until you
(11 14 days before the effective date of the have accepted replacement coverage with an-
cancellation, if cancellation is for non- other insurer, or until you have agreed to the
payment of premium; or nonrenewal.
(2') 75 days before the effective date of the 4. lf we mail or deliver a renewal notice to the
cancellation, if cancellation is for any first Named lnsured at least 30 days before the
reason stated in 7.a.(2) through 7.a.(71 end of the policy period, stating the renewal
above. premium and its due date, the policy will ter-
minate without further notice unless the re-
C. The following is added and supersedes any provi- newal premium is received by us or our author-
sion to the contrary: ized agent by the due date.
NONRENEWAL 5. lf this policy terminates because the renewal
1. For the purpose of this Condition: premium has not been received by the due
a. Any policy period or term of less than date, we will, within 15 days, mail or deliver to
six
months shall be considered to be a policy the first Named lnsured at his last known ad-
period or term of six months; and dress a notice that the policy was not renewed
and the date it was terminated.
b. Any policy period or term of more than one
year or any policy with no fixed expiration 6. lf notice is rnailed, proof of mailing is sufficient
proof of notice.
date shall be considered a policy period or
term of one year.
2. lf we elect not to renew this policy, we will mail
or deliver written notice of nonrenewal, stating
the reason for nonrenewal, to the first Named
lnsured shown in the Declarations, at the last
mailing address known to us, at least 75 days
before the expiration date of the policy period.
A. Paragraph 1.a. of Section I - Coverages, Gover- B. Paragraph 1.a. of Section l- Coverages, Cover-
age A - Bodily lnjury And Property Damage age B - Personal And Advertising lnjury Liabil-
Liability is replaced with the following: ity is replaced with the following:
1. Insuring Agreement 1. lnsuring Agreement
a. We will pay those sums that the insured a. We will pay those sums that the insured
becomes legally obligated to pay as dam- becomes legally obligated to pay as dam-
ages because of "bodily injury" or "property ages because of "personal and "advertising
damage" to which this insurance applies. injury" to which this insurance applies. We
We will have the right and duty to defend will have the right and duty to defend the
the insured against any "suit" seeking those insured against any "suit" seeking those
damages. We may, at our discretion, inves- damages. We may, at our discretion, inves-
tigate any "occurrence" and settle any tigate any offense and settle any claim or
claim or "suit" that may result. But: "suit" that may result. But:
(1) The amount we will pay for damages is (1) The amount we will pay for damages is
limited as described in Section lll- Lim- limited as described in Section lll- Lim-
its Of lnsurance; and its Of lnsurance; and
(2) Our right and duty to defend end when (2) Our right and duty to defend end when
we have used up the applicable limit,of we have used up the applicable limit of
insurance in the payment of judgments insurance in the payment of judgments
or settlements under Coverage A or B or settlements under Coverages A or B
or medical expenses under Coverage C. or medical expenses under Coverage G.
However, using up the Medical Expense However, using up the Medical Expense
Limit does not end our right and duty to Limit does not end our right and duty to
defend. defend.
No other obligation or liability to pay sums No other obligation or liability to pay sums
or perform acts or seruices is covered or perform acts or services is covered
unless explicitly provided for under Sup- unless explicitly provided for under Sup-
plementary Payments - Coverages A and plementary Payments - Coverages A and
B. B.
tL 02 77 09 08
lf we cancel a policy that has been in effect 2. We need not mail or deliver this notice if:
for 60 days or more, or is a renewal of a a. We or another company within our insur-
policy we issued, we will give written notice
ance group have offered to issue a renewal
to the mortgageholder, pledgee or other policy; or
known person shown in the policy to have
an insurable interest in any loss, at least: b. You have obtained replacement coverage
(1) 10 days before the effective date of
or have agreed in writing to obtain re-
placement coverage.
cancellation, if we cancel for nonpay-
ment of premium; or 3. Any notice of nonrenewal will be mailed or
delivered to the first Named lnsured, mort-
(2) 30 days before the effective date of gageholder, pledgee or other known person
cancellation, if we cancel for any other shown in the policy to have an insurable inter-
reason. est in any loss, at the last mailing address
F. The following is added and supersedes any other known to us. lf notice is mailed, proof of mail-
provision to the contrary: ing will be sufficient proof of notice.
NONRENEWAL 4. Such notice to the insured shall include the
1. lf we decide not to renew this policy, we will insured's loss run information for the period the
mail or deliver written notice of nonrenewal to policy has been in force within, but not to ex-
the first Named lnsured, mortgageholder, ceed, the last three ¡rears of coverage.
pledgee or other known person shown in the
policy io have an insurable interest in any loss,
at least 60 days before its expiration date, or
its anniversary date if it is a policy written for a
term of more than one year or with no fixed
expiration date.
The following is added to Subparagraph f., Pollution of Paragraph 2., Exclusions under Section I - Coverage
A - Bodily lnjury And Property Damage Liability Coverage and to Subparagraph m., Pollution of Paragraph
2., Exclusions under Section I - Goverage B - Personal And Advertising lnjury Liability or to any amend-
ment to or replacement thereof:
This Pollution Exclusion applies even if such irritant or contaminant has a function in your business, operations,
premises, site or location.
MISSOURI PROPERTY AND CASUALTY 2. Payments made by the Association for cov-
INSU RANCE GUARANTY ASSOCIATION ered claims will include only that amount of
COVERAGE LIMITATIONS each claim which is less than $300,000.
A. Subject to the provisions of the Missouri properly Howeúer, the Association will not:
and Casualty lnsurance Guaranty Association Act
(to be referred to as the Act), if we are a member (1) Pay an amount in excess of the applicable
of the Missouri Property and Casualty lnsurance limit of insurance of the policy from which a
Guaranty Association (to be referred to as the As- claim arises; or
sociation), the Association will pay claims covered (2) Return to an insured any unearned pre-
under the Act if we become insolvent. mium in excess of $25,000.
B. The Act contains various exclusions, conditions These limitations have no effect on the coverage we
and limitations that govern a claimant's eligíbility will provide under this policy.
to collect payment from the Association and affect
the amount of any payment. The following limita-
tions apply subject to all other provisions of the
Act:
1. Claims covered by the Association do not
include a claim by or against an insured of an
insolvent insurer, if the insured has a net worth
of more than $25 million on the later of the end
of the insured's most recent fiscal year or the
December thirty-first of the year next preced-
ing the date the insurer becomes insolvent;
provided that an insured's net wofth on such
date shall be deemed to include the aggregate
net worth of the insured and all of its affiliates
as calculated on a consolidated basis.
A. Paragraph 1.a. of Coverage C. Medical Payments is (21 The expenses are incurred and repofted to
replaced with the following: us within one year of the date of the acci-
dent. However, expenses reported to us after
L lnsuring Agreement
one year of the date of the accident will not
a. We will pay medical expenses as described be denied solely because of the late submis-
below for "bodily injury" caused by an accident: sion unless such late submission operates to
(1) On premises you own or rent; prejudice our rights; and
(2) On ways next to premises you own or rent; (3) The injured person submits to examination,
or at our expense, by physicians of our choice
as often as wê"reasonably require.
(3) Because of your operations;
provided that:
(1) The accident takes place in the "coverage
territory" and during the policy period;
tL 02 74 09 08
A. When this endorsement is attached to the Stan- a. 10 days before the effective date of cancel-
dard Property Policy CP 00 99, the term Com- , lation if we cancel for nonpayment of pre-
mercial Property Coverage Part in this endorse- mium;
ment also refers to the Standard Property Policy. b. 30 days before the effective date of cancel-
B. With respect to the: lation if cancellation is for one or more of
Commercial General Liability Coverage Part the following reasons:
Commercial Property - Legal Liability Coverage (1) Fraud or material misrepresentation
Form GP 00 40 affecting this policy or a claim filed un-
Commercial Property - Mortgageholders Errors der this policy or a violation of any of
And Omissions Coverage Form CP 00 70 the terms or conditions of this policy;
Crime And Fidelity Coverage Part (2) Changes in conditions after the effective
Employmentrelated Practices Liability Coverage date of this policy which have materially
Part increased the risk assumed;
Equipment Breakdown Coverage Part (3) We become insolvent; or
Farm Liability Coverage Form, (a) We involuntarily lose reinsurance for
Liquor Liability Coverage Part this policy.
Pollution Liability Coverage Part c. 60 days before the effective date of cancel-
Products/Completed Operations Liability Cover- lation if we cancel for any other reason.
age Part
NONRENEWAL
Medical Professional Liability Coverage Part;
2. The following is added and supersedes any
the following Gancellation and Nonrenewal Pro- provision to the contrary:
visions apply:
a. We may elect not to renew this policy by
1. Paragraph 2. of the Gancellation Common mailing or delivering to the first Named ln-
Policy Condition is replaced by the following: sured, at the last mailing address known to
2. We may cancel this policy by mailing or deliv- us, written notice of nonrenewal, stating the
ering to the first Named lnsured written notice actual reason for nonrenewal, at least 60
of cancellation, stating the actual reason for days prior to the effective date of the non-
cancellation, at least: renewal.
b. If notice is mailed, proof of mailing will be 3. We will mail or deliver our notice to the first
sufficient proof of notice. Named lnsured's last mailing address known to
C. With respect to the: us.
Capital Assets Program (Output Policy) Coverage 4. Notice of:
Part a. Cancellation will state the effective date of
Commercial Property Coverage Part cancellation. The policy period will end on
Farm Property - Other Farm Provisions Form - that date.
Additional Coverages, Conditions, Definitions b. Any other action will state the effective date
Coverage Form of that action.
Farm - Livestock Coverage Form
Farm Mobile Agricultural Machinery And
5. lf this policy is cancelled, not renewed, re-
duced in amount or adversely modified, we will
Equipment Coverage Form; send the first Named lnsured any premium re-
the Cancellation Common Policy Condition is re- fund due. lf we take this action, the refund will
placed by the following: be pro rata. lf the first Named lnsured cancels,
CANCELLATION, NONRENEWAL AND the refund may be less than pro rata. This ac-
DECREASES IN COVERAGE tion will be effective even if we have not made
or offered a refund.
1. The first Named lnsured shown in the Declara-
tions may cancel this policy by mailing or de- 6. lf notice is mailed, proof of mailing will be
livering to us advance written notice of cancel- sufficient proof of notice.
lation.
2. We may cancel, nonrenew, reduce in amount
or adversely modify this policy by mailing or
delivering to the first Named lnsured written
notice of this action at least:
a. 10 days before the effective date of this
action if due to nonpayment of premium or
evidence of incendiarism; or
b. 30 days before the effective date of this
action if for any other reason.
lL 02 82 09 08
Paragraph 1.b. lnsuring Agreement of Coverage (21 Necessary medical, surgical, x-ray and
G. Medical Payments is replaced by the following: dental services, including prosthetic de-
b. We will make these payments regardless of vices; and ,,,
fault. These payments will not exceed the (3) Necessary ambulancà, hospital, profes-
applicable limit of insurance. We will pay ex- sional nursing ând funeral services.
penses for:
(1) First aid adminístered at the time of an
accident;
lL 0t 67 09 08
A. The following Condition is added: 2. We will provide the minimum amounts and
Conformity with Montana statutes. The provisions types of other coverages, such as no-fault, re-
of this policy or Coverage Part conform to the quired of out-of-state vehicles by the jurisdic-
minimum requirements of Montana law and con- tion where the covered "auto" is being used.
trol over any conflicting statutes of any state in 3. No one will be entitled to duplicate payments
which you reside on or after the effective date of for the same elements of loss.
this policy or Coverage Part. B. Any provision of this policy or Coverage Part (in-
However, with respect to insurance provided un- cluding endorsements which modify the policy or
der the Commercial Automobile Coverage Paft, Coverage Part) that does not conform to the
while a covered "auto" is away f¡om Montana: minimum requirements of a Montana statute is
1. We will increase the Limit of lnsurance for Li- amended to conform to such statute.
ability Coverage to meet the limits specified by
a compulsory or financial responsibility law of
the jurisdiction where the covered "auto" is be-
ing used. This extension does not apply to the
limit or limits specified by any law governing
motor carriers of passengers or property.
tL 02 43 09 07
MONTANA CHANGES
This endorsement modifies insurance provided under the following:
A. With respect to other than the Farm Property - (d) Substantial breaches of contractual
Farm Dwellings, Appurtenant Structures And " ,dr.lties, conditions or warranties;
Household Personal Property Coverage Form, (e) Determination by the Commissioner
Paragraph 2. of the Cancellation Common Policy of lnsurance that continuation of the
Condition is replaced by the following: policy would place us in violation of
2. Cancellation Of Policies the Montana lnsurance Code;
a. Midterm Gancellation (f)Financial impairment of us; or
We may cancel this policy based on the (g) Such other reasons that are aP-
provisions below, by mailing or delivering proved by the Commissioner of ln-
written notice to the first Named lnsured at surance.
least 10 days before the effective date of (3) lf this policy has been issued for a term
cancellation: longer than one year, and if either the
(1) lf this policy has been in effect for less premium is prepaid or an agreed term is
than 60 days, excePt as Provided in guaranteed for additional premium con-
Paragraph 2.a.(3),belôw, we may cancel sideration, we may cancel this policy
for any reason. only for one or more of the reasons
stated in Paragraph 2.a.(2'¡ above.
(2) lf this polidy has been in effect for 60
days or more, we may cancel this policy b. Anniversary
Cancellation
prior to the expiration of the agreed We may cancel any policy with a term of
term or prior to one year from the effec- more than one year by mailing or delivering
tive date of the PolicY or renewal, to the first Named lnsured written notice of
whichever is less, only for one or more cancellation at least 45 days before the an-
of the following reasons: niversary date of the policy. Such cancella-
(a) Failure to pay a premium when due; tion will be effective on the policy's anni-
versary date.
(b) Material misrepresentation;
(c) Substantial change in the risk as-
sumed, excePt to the extent that we
should reasonably have foreseen the
change or contemPlated the risk in
writing the contract;
B. With respect to the Farm Property - Farm Dwell- (3) lf this policy has been issued for a term
ings, Appurtenant Structures And Household Per- longer than one year, and if either the
sonal Property Coverage Form, Paragraph 2. of premium is prepaid or an agreed term is
the Cancellation Common Policy Condition is re- guaranteed for additional premium con-
placed by the following: sideration, we may cancel this policy
2. Cancellation Of Policies only for one or more of the reasons
stated in Paragraph 2.a.(2)(bl by mail-
a. Midterm Cancellation ing or delivering written notice to the
(1) We may cancel this policy for nonpay- first Named lnsured at least 45 days be-
ment of premium by mailing or deliver- fore the effective date of cancellation.
ing written notice of cancellation to the b. Anniversary Gancellation
first Named lnsured at least 20 days be-
fore the effective date of cancellation. We may cancel any policy with a term of
more than one year by mailing or delivering
(2) We may cancel this policy based on the to the first Named lnsured written notice of
reason(s) stated in Paragraph 2.a.(2)(a) cancellation at least 45 days before the an-
or (2)(b) by mailing or delivering written niversary date of the policy. Such cancella-
notice of cancellation to the first Named tion will be effective on the policy's anni-
lnsured at least 45 days before the ef- versary date.
fective date of cancellation:
G. Paragraph 5. of the Gáncellation Common Policy
(a) lf this policy has been in effect for Condition is replaced hy the following:
less than 60 days, except as pro-
vided in Paragraph 2.a.(31, we may 5. lf this policy is:cancelled, we will send the first
cancel for any reason. Named lnsured any premium refund due. lf we
cancel, the réfund will be pro rata. lf the first
(b) lf this policy has been in effect for 60 Named lnsured cancels, the refund may be
days or more, we may cancel this less thãn pro rata. The cancellation will be ef-
policy prior to the expiration of the fective éVen if we have not made or offered a
agreed term or prior to one year : réfund. However, when a financed insurance
from the effective date of the policy poliCy is cancelled, we will send any refund
or renewal, whichever is less, only due to the premium finance company on a pro
for one or more of the following rea- ':"'rata basis.
SONS:
O. Àny When We Do Not Renew Condition is de-
(i) Material misrepresentation; ' leted.
(ii) Substantial change in the risk The following When We Do Not Renew Condition
assumed, except to the extent is added:
that we should reasonably have
foreseen the change or contem- 1. lf we electnot to renew this Coverage Part, we
plated the risk in writing the con- will mail or deliver to the first Named lnsured
tract;
shown in the Declarations and agent, if any, a
notice of intention not to renew at least 45
(iii) Substantial breaches of contrac- days before the agreed expiration date.
tual duties, conditions or warran-
ties;
2. We need not mail or deliver this notice if:
(iv) Determination by the Commis- a. You have purchased insurance elsewhere;
sioner of lnsurance that continua- b. You have accepted replacement coverage;
tion of the policy would place us c. You have requested or agreed to nonre-
in violation of the Montana lnsur- newal; or
ance Code;
d. This policy is expressly designated as non-
(v) Financial impairment of us; or renewable.
(vi) Such other reasons that are
approved by the Commissioner
of lnsurance.
rL 02 98 09 08
A. Paragraph 2. of the Cancellation Common Policy c. lf we cancel subject lo 2.b. above, we will
Condition is replaced by the following: mail or deliver to the first Named lnsured
2. Permissible Reasons And Notice Period written notice of cancellation at least:
a. lf this policy is in effect less than 60 days, (1) 10 days before the effective date of
we may cancel for any reason by mailing or cancellation, for the reason set forth in
delivering to the first Named lnsured written 2.b.(1).
notice of cancellation at least 10 da¡¡s be- (2) 30 days before the effective date of
fore the effective date of cancellation. cancellation, for the reason set forth in
b. lf this policy is in effect 60 days or more, 2.b.(2).
we may cancel only for one or more of the (3) f 5 days before the effective date of
following reasons: :
cancellation, for a reason set forth in
(1) Nonpayment of premium 2.b.(3), 2.b.(4) or 2.b.(5).
(2) There has,been a substantial change in The written notice will state the reason for cancel-
the risk assumed by us since the policy lation, except that such statement may be omitted
was issued. from a notice mailed to an additional insured or
lienholder under this policy.
(3) The policy was obtained through mate-
rial misrepresentation, fraudulent state- B. The following Condition is added:
ments, omissions or concealment of NONRENEWAL
fact material to the acceptance of the lf we decide not to renew this policy, we will mail
risk or to the hazard assumed by us.
or deliver to the first Named lnsured written notice
(4) Willful and negligent acts or omission of the nonrenewal not less than 30 days before
by the insured have substantially in- the expiration date of the policy.
creased the hazards insured against.
(5) You presented a claim based on fraud
or material m isrepresentation.
tL 01 15 01 10
A. All references to spouse shall include an individ- C. With respect to coverage for the ownership, main-
ual who is in a domestic partnership recognized tehance, or use of "covered autos" provided under
under Nevada law. the :Commercial Liability Umbrella Coverage Part,
B. Under the Commercial Auto Coverage Part, the the term "family member" is replaced by the fol-
term "family member" is replaced by the following: lowing:
"Family member" means a person related to the: , "Family member" means a person related to you
by blood, adoption, marriage or domestic partner-
1. lndividual Named lnsured by blood, adoption, ship recognized under Nevada law, who is a resi-
marriage or domestic partnership recognized dent of your household, including a ward or foster
under Nevada law, who is a resident'of such child.
Named lnsured's household, including a: ward
or foster child; or
2. lndividual named in the Schedule by blood,
adoption, marriage, or domestic partnership
recognized under Nevada [aw, who is a resi-
dent of the individual's household, including a
ward or foster child,if the Drive Other Car
Coverage - Broadened Coverage For Named
lndividual Endorsement is attached.
lL 02 51 09 07
A. The following are added to the Cancellation (5) A material change in the nature or ex-
Common Policy Condition: tent of the risk, occurring after the first
7.a. Midterm Cancellation effective date of the current policy,
which causes the risk of loss to be sub-
lf this policy has been in effect for 70 days stantially and materially increased be-
or more, or if this policy is a renewal of a yond that contemplated at the time the
policy we issued, we may cancel only for policy was issued or last renewed;
one or more of the following reasons:
(6) A determination by the commissioner
(1) Nonpayment of premium; that continuation of our present volume
(2) Conviction of the insured of a crime of premiums would jeopardize our sol-
arising out of acts increasing the hazard vency or be hazardous to the interests
insured against; " , of our policyholders, creditors or the
public;
(3) Discovery of fraud or material misrepre-
sentation in obtaining the policy or in (7) A determination by the commissioner
presenting a òlaim thereunder; that the continuation of the policy would
violate, or place us in violation of, any
(4) Discovery of an act or omission or a provision of the code.
violation of any condition of the policy
which occurred after the first effective b. Anniversary Gancellation
date of the current policy, and substan- lf this policy is written for a term longer
tially and materially increases the haz- than one year, we may cancel for any rea-
ard insured against; son at an anniversary, by mailing or deliv-
ering written notice of cancellation to the
first Named lnsured at the last mailing ad-
dress known to us at least 60 days before
the anniversary date.
Condition 8. TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US (Section lV), does not apply
to COVERAGE C. MEDICAL PAYMENTS.
lL 02 36 09 07
Paragraph 2. of the Cancellation Common Policy (a) The occurrence of a change in the risk
Condition is replaced by the following: that substantially increases any hazard
2. We may cancel this policy by mailing or deliv-, ' insured against after insurance cover-
age has been issued or renewed;
ering to the first Named lnsured written notice
of cancellation at least: (5) A violation of any local fire, health,
safety, building, or construction regula-
a. 10 days before the effective date of cancel-
tion or ordinance with respect to any
lation if we cancel for nonpayment of pre-
covered property or its occupancy that
mium; or
substantially increases any hazard in-
b. 30 days before the effeclive date of cancel- sured against;
lation if we cancel for any other reason.
(6) A determination by the lnsurance
After coverage has been in effect for more Commissioner that the continuation of
than 45 business days or after the effective the policy would place us in violation of
date of a renewal of this policy, no notice of the insurance laws of this state;
cancellation will be issued by us unless it is
(7) Your convíction of a crime having as
based on at least one of the following reasons:
one of its necessary elements an act in-
(1) Nonpayment of premium; creasing any hazard insured against; or
(2) Discovery of fraud or material misrepre- (8) Loss of or substantial changes in appli-
sentation in the procurement of the in- cable reinsurance.
surance or with respect to any claims
B. The following are added to the Common Policy
submitted under it;
Conditions and supersede any provisions to the
(3) Discovery of willful or reckless acts or contrary:
omissions by you that increase any
hazard insured against;
tL 02 46 09 07
A. The Cancellation Common Policy Condition is b. You have failed to pay a premium when
replaced by the following: due, whether the premium is payable di-
CANCELLATION rectly to us or our agents or indirectly under
a premium finance plan or extension of
1. The first Named lnsured shown in the Declara- credit. Notice of cancellation will be mailed
tions may cancel this policy by writing or giving at least 15 days before the effective date of
notice of cancellation. :
cancellation.
2. Gancellation Of Policies ln Effect Fôi Less A condition, factor or loss experience mate-
Than 60 Days rial to insurability has changed substantially
We may cancel this policy by mailing or deliv- or a substantial condition, factor or loss ex-
ering to the first Named lnsured written notice perience material to insurability has be-
of cancellation at least 30 days before the ef- come known during the policy period. No-
fective date of cancellation. tice of cancellation will be mailed or
delivered at least 60 days before the effec-
3. Cancellation Of Policies ln Effect For 60 tive date of cancellation.
Days Or More
d. Loss of reinsurance or a substantial de-
lf this policy has been in effect for 60 days or crease in reinsurance has occurred, which
more or if this policy is a renewal of a policy loss or decrease, at the time of cancella-
we issued, we may cancel this policy only for tion, shall be certified to the lnsurance
one or more of the following reasons:
Commissioner as directly affecting in-force
a. You have made a material misrepresenta- policies. Notice of cancellation will be
tion which affects the insurability of the risk. mailed or delivered at least 60 days before
Notice of cancellation will be mailed or de- the effective date of cancellation.
livered at least 15 days before the effective
date of cancellation.
e. Material failure to comply with policy terms, 7. lf notice is mailed, it will be by registered or
conditions or contractual duties. Notice of first class mail. Proof of mailing will be suffi-
cancellation will be mailed or delivered at cient proof of notice.
least 60 days before the effective date of B. The following are added and supersede any provi-
cancellation. sions to the contrary:
f.
Other reasons that the lnsurance Commis- 1. Nonrenewal
sioner may approve. Notice of cancellation
will be mailed or delivered at least 60 days lf we decide not to renew this policy, we will
before the effective date of cancellation. mail or deliver written notice of nonrenewal,
stating the specific reasons for nonrenewal, to
This policy may also be cancelled from inception the first Named lnsured at least 60 days before
upon discovery that the policy was obtained the expiration date of the policy.
through fraudulent statements, omissions or con-
cealment of facts material to the acceptance of 2. lncrease Of Premium
the risk or to the hazard assumed by us. lf we increase your renewal premium, we will
4. We will mail or deliver our notice to the first mail or deliver to the first Named lnsured writ-
Named lnsured's last mailing address known to ten notice of our intent to increase the pre-
us. Notice of cancellation will state the specific mium at least 30 days, before the effective
reasons for cancellation. date of the premium increâse.
5. Notice of cancellation will state the effective Any notice of nonrenêWâl or renewal premium in-
date of cancellation. The policy period will end crease will be mailed or: delivered to the first
on that date. Named lnsured's last known address. lf notice is
mailed, it will be by registered or first class mail.
6. lf this policy is cancelled, we will send the first Proof of mailing will be sufficient proof of notice.
Named lnsured any premium refund due. lf we
cancel, the refund will be pro rata and will be
returned within 10 business days after the ef-
fective date of cancellation. lf the first Named
lnsured cancels, the refund may be less than
pro rata and will be returned within 30 days af-
ter the effective date of cancellation. The can-
cellation will be effective even if we have not
made or offered a refund.
TEXAS CHANGES
This endorsement modifies insurance provided under the following:
SIGNATURES
THE ONLY SIGNATURES APPLICABLE TO THIS POLICY ARE THOSE REPRESENTING THE COMPANY NAMED
ON THE FIRST PAGE OF THE DECLARATIONS.
By signing and delivering the policy to you, we state that it is a valid contract.
INDEMNITY INSURANCE COMPANY OF NORTH AMERICA
436 Walnut Street, P. O. Box 1000, Philadelphia, Pennsylvania 19'l06-3703
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WESTCHESTER FIRE INSURANCE COMPANY
1325 Avenue of the Americas, 19th Floor, New York, NY 10019
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¿r DENI*,||S À, TROSBI JR,. Presidcnt
Authorized Agent