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HomeMy WebLinkAboutInsurance City Polices - WA Cities (2000-2009) V • CRIME AND FIDELITY CR DS 04108 07 POLICY NUMBER: GOVERNMENT CRIME 01-420-38-13 POLICY DECLARATIONS REPLACEMENT OF POLICY NUMBER: • 00-544-16-36 In ReiturnF For The Payment Of The Premium, And Subject To All The Terms And Conditions Of This Policy, We Agree With You To, Provide The Insurance As Stated In This Policy. Coverage, Is Written: QPrimary ❑ Excess ❑ Coindemnity ❑ Concurrent Company Name Area: National Union Fire Insurance Company of Pittsburgh, Pa. Producer Name Area: MARSH;USA, INC. 500 W',HONROE ST #3600 CHICAGO, IL 60661 Named Insured: WASHINGTON CITIES INSURANCE AUTHORITY (including any Employee Welfare or Benefit Plans) Mailing Address: 320 ANDOVER PARK EAST TUKWILA, WA 98188 Policy Period From: December 31, 2008 To: December 31, 2009 12:01 A.M. at your mailing address shown above. Limit of Insurance Deductible Amount Insurance Agreements Per Occurrence Per Occurrence, 1.Em to ee Theft - Per Loss Coverage $2 500 000 $10,000 p Y 9 $ 2.Employee Theft - Per Employee Coverage Not Covered 3. Forgery Or Alteration $2,500,000 $10,000 4. Inside The Premises - Theft Of Money And Securities $2,500,000 $10.000 5. Inside The Premises - Robbery Or Safe Burglary Of Other Property $2,500,000 $10,000 6. Outside The Premises $2,500,000 $10,000 7. Computer Fraud $2,500,000 $10,000 8. Funds Transfer Fraud $2,500,000 $10,000 9. Money Orders And Counterfeit Money $2,500,000 $10,000 If "Not Covered" is inserted above opposite any Insuring Agreement, such Insuring Agreement and any other reference thereto in .this policy is deleted. 334046 CR DS 04 08 07 9 ISO Properties, Inc., 2006 Page' 1 of 2 ❑ I • CRIME AND FIDELITY CR DS 04;08 07 GOVERNMENT CRIME POLICY NUMBER: 01.420.38.13 POLICY DECLARATIONS REPLACEMENT OF POLICY NUMBER: 00-544-16136 Endor-ements Forming Part Of This Policy When Issued: #1.#2, •3,#4,#5,#6,#7,#8,#9,#10,#.11,#12 I I Cance ation Of Prior Insurance Issued By Us: By ac'ieptance of this Policy you give us notice cancelling prior policy Nos. 005441636; the cancel ation to be effective at the time this Policy becomes effective. Premi : $78,382 Countersignature Of Authorized Representative Name: Title: Signs re: Date: I I t21,e-ex-•* hz . „:2 SECRETARY /7 / PRESIDENT (71 AUTHORIZED REPRESENTATIVE 334046 CR DS 04 08 07 el ISO Properties, Inc., 2006 Page 2 of 2 ❑ il 11 1 1, CRIME AND FIDELITY! II CR00270506' GOVERNMENT CRIME POLICY (LOSS SUSTAINED FORM) IVariious provisions in this policyrestrict aton of checks, drafts, romis- II P coverage. Read the entire policy carefully sory notes, or similar written Ilto determine rights, duties and what is or promises, orders or directions to 1 .Iilis not covered. I pay a sum certain in "money" that jIThroughout this policy) the words "you" are: and1 "your" refer to the Named Insured (1) Made or drawn by or drawn llshown in the Declarations. The words upon you; or "we", "us" and "our" refer to the Company (2) Made or drawn by one acting 1 providing this insurance. as your agent; 1,Other words and phrases that appear in or that are purported to have quotation marks have special meaning. been so made or drawn. ¢iRefer to Section F. Definitions. AIII . Insuring Agreements For the purposes of this lnsulring Agreement, a substitute check as II Coverage is provided under the follow- defined in the Check Clearing for ing Insuring Agreemlents for which a the 21st Century Act shall, be Limit of Insurance is shown in the Dec- treated the same as the original lit larations and applies to loss that you replaced. sustain resultingdirectlyfrom an "oc- b. Ifyou are sued for refusingto „ g currence takingplace duringthe Policy covered 11 Period shown in the Declarations, ex- pay any instrument co ed in ; cept as provided in Condition E.1.n. or Paragraph 3.a., on the basis that it has been forged or altered, and ++ " g E.1.o., which is discovered byou 1 �. Y you have our written consent to curing the Policy Period shown in the ., defend against the suit, we will Declarations or duri g the period of � pay for any reasonable legal time provided in the Extended Period expenses that To Discover Loss Condition E.1.1.: p you incur and ;pay in that defense. The amount that 1. Employee Theft I Per Loss Coy- we will pay is in addition to the erage Limit of Insurance applicable to 9 Pp We will pay for loss of or damage to this Insuring Agreement. 11 , "money",mone "securities" and "other 4. inside The Premises - Theft Of property" resulting directly from Money And Securities II theft committed byan "employee", "money" m ee p Y a. We will payfor loss of money whether identified or " "h identified not, acting - and "securities inside the rem alone or in collusion with other per- " P ises" or "bankingremises sons. P For (1) Resulting directly from "theft" the purposes of this Insuring committed by a person present Agreement, "theft shall also include inside such ,+premises" or 11 forgery. l "banking premises'; or i` 2. Employee Theft I- Per Employee (2) Resultingdirectlyfrom dis- 111 Coverage appearance or destruction. 11 We will pay for loss of or damage to b. We will pay for loss from damage , "money", "securities" and "other ,p ++ property" resulting directly from to the premises or its exterior resulting directlyfrom an actual "theft" theft committedi by each "em- or attempted "theft" of "mone " " ,• p Y II to ee whether identified or not, "securities",Y and if you are the acting alone or in collusion with owner of the "premises" or are other persons. liable for damage to it. g For the purposes'' of this Insuring c. We will payfor loss of or damage " „ g i Agreement, theft shall also include to a locked safe, vault, cash er for 9 Y register, cash box or cash drawer ill 3. Forgery Or Alteration located inside the premises' , a. We will pay for loss resulting resulting directly from an actual II directly from "forgery" or alter- or attempted "theft" of or un- lawful entry into those containers I III 1 CR 00 127 05 06 Co ISO Properties, Inc., 2005 Page 1 of 115 0 i i 5. Inside The Premises - Robbery Or instruction" directing a financial in Safe Burglary Of Other Property stitution to transfer, pay or deliver a. We will pay for loss of or damage "funds" from your "transfer account. to "other property": 9. Money Orders And Counterfe t (1) Inside the "premises" resulting Money directly from an actual or at- We will pay for loss resulting di- tempted "robbery" of a "custo- rectly from your having accepted inn dian"; or good faith, in exchange for mer- (2) Inside the "premises" in a safe chandise, "money" or services: 1 or vault resulting directly from a. Money orders issued by any post an actual or attempted "safe office, express company or bank burglary". that are not paid upon pre- b. We will pay for loss from damage sentation; or to the "premises" or its exterior b. "Counterfeit money" that is ac- resulting directly from an actual quired during the regular course or attempted "robbery" or "safe of business. burglary" of "other property", if B. Limit Of Insurance you are the owner of the "prem- ises" or are liable for damage to The most we will pay for all loss it. resulting directly from an "occurrence" c. We will pay for loss of or damage is the applicable Limit of Insurance shown in the Declarations. to a locked safe or vault located inside the "premises" resulting If any loss is covered under more than directly from an actual or at- one Insuring Agreement or Coverage, tempted "robbery" or "safe bur- the most we will pay for such Ions glary". shall not exceed the largest Limit of In- 6. Outside The Premises surance available under any one of those Insuring Agreements or Cov a. We will pay for loss of "money" erages. and "securities" outside the C. Deductible premises in the care and custody of a "messenger" or an We will not pay for loss resulting di armored motor vehicle corn- rectly from an "occurrence" unless the pany resulting directly from amount of loss exceeds the Deductible "theft", disappearance or destruc- Amount shown in the Declarations. We tion. will then pay the amount of loss in b. We will pay for loss of or damage excess of the Deductible Amount, up to to "other property" outside the the Limit of Insurance. "premises" in the care and cus- D. Exclusions tody of a "messenger" or an 1. This policy does not cover: armored motor vehicle company a. Acts Committed By You resulting directly from an actual or attempted "robbery". Loss resulting from "theft" or any 7. Computer Fraud other dishonest act committed bl you, whether acting alone or in We will pay for loss of or damage to collusion with other persons. "money", "securities" and "other b. Acts Of Employees Learned Of property" resulting directly from the use of any computer to fraudulently By You Prior To The Policy Pei cause a transfer of that property riod from inside the "premises" or "bank- Loss caused by an "employee" if ing premises": the "employee" had also comj a. To a person (other than a "mes- mitted "theft" or any other disT senger") outside those "prem- honest act prior to the effective ises"; or date of this policy and you or ank b. To a place outside those "prem- of your officials, not in collusion ises". with the "employee", learned of 8. Funds Transfer Fraud that "theft" or dishonest act prior to the Policy Period shown in the We will pay for loss of "funds" Declarations. resulting directly from a "fraudulent Page 2 of 15 0 ISO Properties, Inc., 2005 CR 00 27 05 06 0 1 • c. Acts Of Officials, Employees Or by you which are related to any Re resentatives le al action, except when covered Loss resulting from "theft" or any under Insuring Agreement A.3. other dishonest act committed by h. Nuclear Hazard any of your officials, "employees" Loss or damage resulting from , or authorized representatives: nuclear reaction or radiation, or (1) Whether acting alone or in radioactive contamination, how- , collusion with other persons; ever caused. or I i. Pollution (2) While performing services for Loss or damage caused by 'or, you or otherwise; resulting from pollution. Pollution except when covered under In- means the discharge, dispersal,, suring Agreement A.1. or A.2. seepage, migration, release or' 1 d. Confidential Information escape of any solid, liquid, gas- 1 eous or thermal irritant or con- Loss resulting from: taminant, including smoke, vapor, (1) The unauthorized disclosure of soot, fumes, acids, alkalis, chem- your confidential information leafs and waste. Waste includes including, but not limited to, materials to be recycled, recon- patents, trade secrets, proc- ditioned or reclaimed. I , essing methods or customer j. War And Military Action lists; or (2) The unauthorized use or dis Loss or damage resulting from: closure of confidential infor- (1) War, including undeclared or mation of another person or civil war; entity which is held by you (2) Warlike action by a military including, bilit not limited to, force, including action in hin- ' financial information, personal dering or defending against an information, icredit card infor- actual or expected attack, by, mation or similar non-public any government, sovereign or information. other authority using military e. Governmental Action personnel or other agents; or Loss resulting from seizure or (3) Insurrection, rebellion, revolw- destruction of propertyi by order Lion, usurped power, or action of governmental authority. taken by governmental autho- f. Indirect Loss j rity in hindering or defending against any of these. Loss that is an indirect result of 2. Insuring Agreements A.1. and A.2. do an "occurrence' covered by this not cover: policy including, but not limited to, loss resulting from: a. Bonded Employees (1) Your inability to realize income Loss caused by any "employee that you would have realized required by law to be individuallly ' had there been no loss of or bonded. c damage to "money", "secu- b. Inventory Shortages rities" or "other property". (2) of damages of any Loss, or that part of any loss, the legally proof of which as to its existence type Payment which you are liable. But, we will pay corn- or amount is dependent upon: 11 pensatory damages arising di- (1) An inventory computation; or' rectly from 1 a loss covered (2) A profit and loss computation. under this policy. (3) Payment off costs, fees or However, where you establish , wholly apart from such corn- other expenses you incur in sus- establishing either the exis- putations that you have tense or the amount of loss tained a loss, then you may offer your inventory records and actual under this policy. physical count of inventory in g. Legal Fees, Costs And Expenses support of the amount of loss Fees, costs and expenses incurred claimed. i CR 00 27 05 06 0 ISO Properties, Inc., 2005 Page 3 of 15 ❑ 1 c. Trading introduce a virus or other Loss resulting from trading, malicious instruction into whether in your name or in a your computer system genuine or fictitious account. which is designed to damf age, destroy or corrupt data d. Treasurers Or Tax Collectors or computer programs Loss caused by any treasurer or stored within your computer tax collector by whatever name system; known. (f) As a result of a threat to 3. Insuring Agreements A.4., A.5. and contaminate, pollute or ren A.6. do not cover: der substandard your prod-1 a. Accounting Or Arithmetical Er- ucts or goods; or rors Or Omissions (g) As a result of a threat to Loss resulting from accounting or disseminate, divulge or util arithmetical errors or omissions. 1ze: b. Exchanges Or Purchases (i) Your confidential infor- Loss resultingfrom the motion; or giving or surrendering of property in any (ii) Weaknesses in th exchange or purchase. source code within your c. Fire computer system. Loss or damage resultingfrom (2) But, this Exclusion does not g apply under Insuring Agree fire, however caused, except: ment A.6. to loss of "money' (1) Loss of or damage to "money" "securities" or "other property" and "securities'; and while outside the "premises" in (2) Loss from damage to a safe or the care and custody of a vault. "messenger" if you: d. Money Operated Devices (a) Had no knowledge of an threat at the time the con Loss of property contained in any veyance began; or money operated device unless the amount of "money" deposited (b) Had knowledge of a threw in it is recorded by a continuous at the time the conveyance recording instrument in the de- began, but the loss was not vice. related to the threat. e. Motor Vehicles Or Equipment g. Vandalism And Accessories Loss from damage to the 'prom- Loss of or damage to motor ve- ices" or its exterior, or to any hicles, trailers or semi-trailers or safe, vault, cash register, cash equipment and accessories at- box, cash drawer or othe� tached to them. property" by vandalism or ma- licious mischief. f. Transfer Or Surrender Of Prop- h. Voluntary Parting Of Title To Oi e rty (1) Loss of or damage to property Possession Of Property after it has been transferred or Loss resulting from your, or any- surrendered to a person or one acting on your express or place outside the "premises" or implied authority, being induced "banking premises": by any dishonest act to volun- (a) On the basis of unauthor- tarily part with title to or pos ized instructions; session of any property. (b) As a result of a threat to do 4. Insuring Agreement A.7. does not bodily harm to any person; cover: (c) As a result of a threat to do a. Credit Card Transactions damage to any property; Loss resulting from the use or (d) As a result of a threat to purported use of credit, debit, introduce a denial of service charge, access, convenience, attack into your computer identification, stored-value of system; other cards or the information (e) As a result of a threat to contained on such cards. Page 4 of 15 0 ISO Properties, Inc., 2005 CR 00 27 05 06 ❑ ' P 1 1 b. Funds Transfer Fraud known to us. Loss resulting from a "fraudulent (4) Notice of cancellation will ' instruction" directing a financial state the effective date of 11 institution to transfer, pay or cancellation. The policy period deliver "funds" from your "transfer will end on that date. account". (5) If this policy is cancelled, we c. Inventory Shortages will send the first Named In- Loss, or that part of any loss, the sured any premium refund due., proof which as to its existence or If we cancel, the refund will be ' amount is dependent upon: pro rate. If the first Named In- sured{1} An inventory; computation; or cancels, the refund may be less than pro rata. The can- (2) A profit and loss computation. cellation will be effective even 5. Insuring Agreement A.8. does not if we have not made or offered cover: I a refund. i I COMPUTER FRAUD (6) If notice is mailed, proof of Loss resultingfrolm the use of anymailing will be sufficient proof of notice. computer to fraudulently cause a c. Changes transfer of "money", "securities" or "other property". This policy contains all the agreements between you and us ' E. ConditionsI concerning the insurance afford- 1. Conditions Applicable To All In- ed. The first Named Insured suring Agreements shown in the Declarations is au- a. Additional Premises Or Employ- thorized to make changes in the ees terms of this policy with our If, while this policy is in force, consent. This policy's terms can you establish) any additional be amended or waived only by "premises" or hire additional "em- endorsement issued by us and ployees", such "premises" and made a part of this policy. "employees" s',hail automatically d. Concealment, Misrepresentation be covered under this policy. Or Fraud Notice to us oft an increase in the This policy is void in any case of number of "premises" or "em- fraud by you as it relates to ,this , ployees" need !not be given and policy at any time. It is also void no additional premium need be if you or any other Insured, at paid for the remainder of the anytime, intentionallyconceal or PolicyPeriod shown in the Dec- misrepresent a material fact con- larations. cerning: b. Cancellation Of Policy II , (1) This policy; (1) The first Named Insured shown in the Declarations may cancel (2) The property covered under' this policy by mailing or de- thispolicy; livering to us advance written (3) Your interest in the property notice of cancellation. covered under this policy; or (2) We may cancel this policy by (4) A claim under this policy. mailing or !delivering to the first Named Insured written e. Cooperation notice of cancellation at least: Youcooperate must co e prat with us in all (a) 10 days before the effective matters pertaining to this policy date of cancellation if we as stated in its terms and con- e, cancel for nonpayment of ditions. II premium; !or f. Duties In The Event Of Loss (b) 30 days before the effective After you "discover" a loss or a date of cancellation if we situation that may result in loss cancel for any other reason. of or damage to "money", "secu- (3) We will mail or deliver our rities" or "other property" you notice to the first Named In- must: sured's last! mailing address , CR 00?I27 05 06 i 0 iSO Properties, Inc., 2006 Page 5 of 15 , 1 , 1 (1) Notify us as soon as possible. date. I'li if you have reason to believe j. Inspections And Surveys that any loss (except for loss covered under Insuring Agree- (1) We have the right to: ment Al., A.2. or A.3.) involves (a) Make inspections and sur- a violation of law, you must veys at any time; also notify the local law en- (b) Give forcement authorities. you reports on the conditions we find; and (2) Submit to examination under (c) Recommend changes. oath at our request and give us a signed statement of your (2) We are not obligated to make answers. any inspections, surveys, re (3) Produce for our examination all ports or recommendations and pertinentod records. any such actions we do unj dertake relate only to insure-IL Give us a detailed, sworn proof bility and the premiums to be of loss within 120 days. charged. We do not make (5) Cooperate with us in the in- safety inspections. We do not vestigation and settlement of undertake to perform the duty any claim. of any person or organization g. Employee Benefit Plans to provide for the health or safety of workers or the public. (1) The employee benefit plans And we do not warrant that shown in the Declarations conditions: I (hereafter referred to as Plan) (a) Are safe or healthful; or are included as Insureds under Insuring Agreement A.1. or A.2. (b) Comply with laws, regula- (2) Any payment we make for loss tions, codes or standards. sustained by any Plan will be (3) Paragraphs j.(1) and j.(2) apply made to the Plan sustaining not only to us, but also to any the loss. rating, advisory, rate service or (3) The Deductible Amount appli- similar organization which cable to Insuring Agreement surveyss, insurance orin reticns, A.1. or A.2. does not apply to surveys, reports or recom loss sustained by any Plan. mendations. h. Examination Of Your Books And k. Joint Insured Records (1) If more than one Insured is named in the Declarations, the We may examine and audit your first Named Insured will act fo books and records as they relate itself and for every other to this policy at any time during the Policy Period shown in the Insured for all purposes of this Declarations and up to 3 years policy. If the first Named afterward. Insured ceases to be covered, i. Extended Period To Discover then the next Named Insured Loss will become the first Named Insured. We will pay for loss that you (2) If any Insured or official of that sustained prior to the effective Insured has knowledge of any date of cancellation of this policy, information relevant to this which is "discovered" by you no policy, that knowledge is con-I later than 1 year from the date of sidered knowledge of every that cancellation. Insured. However, this extended period to (3) An "employee" of any Insured "d iscover" loss terminates im- is considered to be an "em- mediately upon the effective date ployee" of every Insured. of any other insurance obtained by you, whether from us or (4) If this policy or any of its another insurer, replacing in coverages is cancelled as to whole or in part the coverage any Insured, foss by afforded under this policy, that Insured is coveeredred only if it is discovered' by you no whether or not such other insur- once later than 1 year from the date provides coverage for loss of that cancellation. sustained prior to its effective Page 6 of 15 0 ISO Properties, Inc., 2005 CR 00 27 05 06', ❑ However, this extended period place: to discover' loss terminates immediately"upon the effective (a) Partly during the Policy Pe- riod shown in the Decla- date of any other insurance rations; and I 1 , obtained by that Insured, Policy Pe- insurer, during replacing in whole or riod(s) of any prior can- in part the coverage afforded celled insurance that we or under this policy, whether or any affiliate issued to you not such other insurance pro- or any predecessor inl in- , 11 vides coverage for loss sus- terest; tained prior, to its effective and this policy became ef- date. festive at the time of can- cellation of theprior insurance, (5) We will not,pay more for loss sustained by more than one we will first settle the amount. Insured than the amount we of loss that you sustained 'du'r- , would pay if all such loss had ing this Policy Period. We' will been sustained by one Insured. then settle the remaining ' 6 Payment b y us to the first amount of loss that you sus- ( ) Y Y tained duringthe PolicyPe- Named insured for loss sus- riod(s) of th prior insurance. ' tained by any Insured, other than an employee benefit plan, (2) Loss Sustained Entirely Our- ' shall fully release us on ac- ing Prior Insurance count of such loss. If you "discover" loss during I. Legal Action Against Us the Policy Period shown in the Declarations, resulting directly You may not; bring any legal from an "occurrence" taking action against us involving loss: place entirely during the Policy (1) Unless you have complied with Period(s) of any prior cancelled II all the terms', of this policy; insurance that we or any af- (2) Until 90 days after you have filiate issued to you or any filed proof of loss with us; and predecessor in interest, we will (3) Unless brought within 2 years pay for the loss, provided: from the date you "discovered" (a) This policy became effective' the loss. at the time of cancellation of the prior insurance; and; ' If any limitation in this Condition (b) The loss would have been is prohibited bylaw, such lim- covered under this policy itation is amended so as to equal had it been in effect at the the minimum period of limitation provided by such law. time of the "occurrence". m. Liberalization I We will first settle the amount of loss that you sustained dur- If we adopt any revision that ing the most recent prior in- would broaden the coverage un- surance. We will then settle der this policy without additional any remaining amount of loss', premium within 45 days prior to that you sustained during the ' or during the Policy Period shown Policy Period(s) of any other' 1 in the Declarations, the broad- ened coverage, will immediately prior insurance. apply to this policy. (3) In settling loss subject to this n. Loss Sustained During Prior Condition: Insurance Issued By Us Or Any (a) The most we will pay for Affiliate the entire loss is the high- (1) Loss Sustained Partly During eat single Limit of Insurance This Policy And Partly During applicable during the period Prior Insurance of loss, whether such limit was written under this P o1- If you "disc,over" loss during icy or was written under the the Policy Period shown in the prior insurance issued by 1. Declarations, resulting directly II from an "occurrence" taking us. h CR 00,27 05 06 1 0 ISO Properties, Inc., 2005 Page 7 of 15 ❑ (b) We will apply the applicable ($2,500) is settled first. Th Deductible Amount shown amount we will pay is nil in the Declarations to the ($0.00) because the amount amount of loss sustained of loss is less than the under this policy. If no loss Deductible Amount (i.e., was sustained under this $2,500 loss - $5,000 policy, we will apply the deductible =$0.00). Deductible Amount shown 2. The remaining amount of in the Declarations to the loss sustained under Polio+ amount of loss sustained B ($7,500) is settled next. under the most recent prior The amount recoverable i insurance. $5,000 after the remainin If the Deductible Amount is Deductible Amount fror larger than the amount of Policy A of $2,500 is applied loss sustained under this to the loss (i.e., $7,500 lose policy, or the most recent - $2,500 deductible = prior insurance, we will ap- $5,000). ply the remaining Deduct- The most we will pay for thi ible Amount to the re- loss is $5,000. maining amount of loss EXAMPLE NO. 2: sustained during the prior insurance. The insured sustained a coy We will not apply any other ered loss of $250,000 resulting Deductible Amount that directly from an "occurrence" may have been applicable taking place during the terms to the loss. of Policy A and Policy B. (4) The following examples dem- POLICY A onstrate how we will settle The current policy. Written at a losses subject to this Con- Limit of Insurance of $125,000 dition E.1.n.: and a Deductible Amount of EXAMPLE NO. 1: $10,000. The insured sustained a coy- POLICY B ered loss of $10,000 resulting Issued prior to Policy A. directly from an "occurrence" Written at a Limit of Insurance taking place during the terms of $150,000 and a Deductible of Policy A and Policy B. Amount of $25,000. POLICY A The amount of loss sustained The current policy. Written at a under Policy A is $175,000 and Limit of Insurance of $50,000 under Policy B is $75,000. and a Deductible Amount of The highest single Limit of In- $5,000. surance applicable to this en POLICY B tire loss is $150,000 written Issued prior to Policy A. under Policy B. The Policy A Written at a Limit of Insurance Deductible Amount of $10,00 of $50,000 and a Deductible applies. The loss is settled asp Amount of $5,000. follows: The amount of loss sustained 1. The amount of loss sus- under Policy A is $2,500 and tained under Policy A under Policy B is . ($175,000) is settled first. The amount we will pay ie The highest single Limit of the Policy A Limit of Insurance applicable to this $125,000 because $175,000 entire loss is $50,000 written loss - $10,000 deductible under Policy A. The Policy A $165,000 which is greater Deductible Amount of $5,000 than the $125,000 policy applies. The loss is settled as limit. follows: 1. The amount of loss sus- tained under Policy A Page 8 of 15 ISO Properties, Inc., 2005 CR 00 27 05 06 O I I 2. The remaining amount of The amount we will pay is loss sustained under Policy $250,000 (no deductible is, B ($75,000) is settled next. applied). The amount we will pay is 3. The amount of loss sus- $25,000 (i.e., $150,000 Policy tained under Policy C" B limit - $125,000 paid ($600,000) is settled next. under Policy A =$25,000). The amount we will pay is The most we will pay for this $500,000, the policy limit loss is $150,000. (no deductible is applied). EXAMPLE NO. 3: 4. We will not make any The insured, sustained a cov- ered loss of $2,000,000 re- cy D as the maximum suiting directly from an "oc- amount payable under the, currence" taking place during highest single Limit of In- the terms of Policies A, B, C surance applying to the loss and D. of $1,000,000 under Policy'A" POLICY A has been satisfied. 1 The current policy. Written at a The most we will pay for this loss is $1,000,000. limit of Insurance of $1,000,000 and a Deductible o. Loss Sustained During Prior In- Amount of $100,000. surance Not Issued By Us Or POLICY B Any Affiliate Issued riot to Policy A. (1) if you "discover" loss during, p the Policy Period shown in the, Written at ai Limit of Insurance Declarations, resulting directly of $750,000': and a Deductible from an "occurrence" taking, Amount of $75,000. place during the Policy Period POLICY C of any prior cancelled insur- i Issued prior to Policy B. ance that was issued to you 'orl apredecessor in interest b Written at a, Limit of Insurance y; another company, and the' e- of $5000001 and a Deductible p y p riod of time to discover loss Amount of $50,000. under that insurance had ex- POLICY D pired, we will pay for the loss Issued prior to Policy C. under this policy, provided: Written at a Limit of Insurance (a) This policy became effective, of $500,000 and a Deductible at the time of cancellation Amount of $50,000. of the prior insurance; and' The amount of loss sustained (b) The loss would have been! under Policy A is $350,000, un- covered under this policy' der Policy B is $250,000, under had it been in effect at the Policy C is $600,000 and under time of the "occurrence". Policy D is $800,000. (2) In settling loss subject to this The i hi hest sn le Limit of In- g ' g Condition: surance applicable to this entire loss is $1,000,000 (a) The most we will pay for written under Policy A. The the entire loss is the lesser Policy A Deductible Amount of of the Limits of Insurance $100,000 applies. The loss is applicable during the period' settled as follows: of loss, whether such limit 1. The amount of loss sus- 1was written under this poi tained under Policy A icy or was written under the: ($350,000) is settled first. prior cancelled insurance. The amount we will pay is (b) We will apply the applicable, $250,000 j(i.e., $350,000 loss Deductible Amount shown - $100,000 deductible = in the Declarations to the $250,000)L amount of loss sustained 2. The amount of loss sus under the prior cancelled tained under Policy B insurance. ($250,000) is settled next. ' I CR OO1127 05 06 0 ISO Properties, Inc., 2005 Page 9 of 15 ❑ IY1 I (3) The insurance provided under shown in the Dacia- this Condition is subject to the rations; following: whichever is greater. Our pay- (a) If loss covered under this ment for loss is subject to the Condition is also partially terms and conditions of this covered under Condition policy. E.1.n., the amount recov- (2) Excess Insurance erable under this Condition is part of, not in addition to, (a) When this policy is written the amount recoverable un- excess over other insurance, der Condition E.1.n. we will only pay for the (b) For loss covered under this amount of loss that exceeds the Limit of insurance and Condition that is not subject Deductible Amount of that to Paragraph (3)(a), the other insurance, whether amount recoverable under you can collect on it or not. this Condition is part of, not Our payment for loss is in addition to, the Limit of subject to the terms and Insurance applicable to the conditions of this policy. loss covered under this pol- icy and is limited to the (b) However, if loss covered lesser of the amount recov- under this policy is subject arable under: to a Deductible, we will re ll (i) This policy as of its ef- duce the Deductible Amount fective date; or shown in the Declarations by the sum total of all sucl iil ' (ii) The prior cancelled in- other insurance plus any surance had it remained Deductible Amount appliI in effect. cable to that other insur- p. Other Insurance ante. If other valid and collectible in- q. Ownership Of Property; Inter- surance is available to you for ests Covered loss covered under this policy, The property covered under this our obligations are limited as fol- policy is limited to property: lows: (1) Primary insurance (1) That you own or lease; or When this policy is written as (2) That you hold for others i nry insurance, and: whether or not you are legally prliable for the loss of such (a) You have other insurance property. subject to the same terms However, this policy is for you and conditions as this pol- benefit only. It provides no right icy, we will pay our share of or benefits to any other person or the covered loss. Our share organization. Any claim for lost is the proportion that the that is covered under this policy 1 applicable Limit of Insurance must in the Declarations be presented by you. bears to the total limit of all r. Premiums 1 insurance covering the The first Named Insured shown in same loss. the Declarations: (b) You have other insurance (1) Is responsible for the payment covering the same loss of all premiums; and other than that described in Paragraph (1)(a), we will (2) Will be the payee for any only pay for the amount of return premiums we pay. loss that exceeds: s. Records (i) The Limit of Insurance You must keep records of al and Deductible Amount property covered under this pol- of that other insurance, icy so we can verify the amount whether you can collect of any loss. 1 on it or not; or (ii) The Deductible Amount 1 Page 10 of 15 4) ISO Properties, Inc., 2005 CR 00 27 05 06, ❑ i . 1 t. Recoveries to and including its face (1) Any recoveries, whether ef- value. fected before or after any (b) Loss of "securities" but only ; II 1 payment under this policy, up to and including their whether made by us or you, value at the close of bus- shall be applied net of the iness on the day PP the loss expense of such recovery: was "discovered". We may, (a) First, to you in satisfaction at our option: of your .covered loss in (i) Pay the market value of excess of the amount paid such "securities" or re- under this policy; place them in kind, in (b) Second, to us in satisfaction which event you must of amounts paid in settle- assign to us all your ment of your claim; rights, title and interest (c) Third, to I ou in satisfaction in and orto those "se Y curities"; or of any Deductible Amount; and 1 (ii) Pay the cost of any Lost (d) Fourth, to you in satis- Securities Bond required is- factionin of any loss not connectioniawith tes of thesuing duplicates covered under this policy. "securities". However, we (2) Recoveries do not include any will be liable only for the recovery: payment of so much of (a) From insurance, suretyship, the cost of the bond as reinsurance, security or in- would be charged for a demnity taken for our bond having a penalty benefit; or not exceeding the lesser of the: (b) Of original "securities" after I. Market value of 'the II 1 duplicates of them have been issued. "securities" at the close of business on u. Territory the day the loss was This policy covers loss that you "discovered"; or sustain resulting directly from an ii. The Limit of Insur- ' "occurrence" taking place within ance applicable to the the United States of America securities. (including its territories and pos- sessions) and Puerto Rico. (c) Loss of or damage to "other property" or loss from v. Transfer Of Your Rights And damage to the "premises" Duties Under This Policy or its exterior for the re- Your rights and duties under this placement cost of the prop- 11 1 policy may not be transferred erty without deduction for , I without our written consent. depreciation. However, we w. Transfer Of Your Rights Of Re- will not pay more than the covery Against Others To Us least of the following: You must transfer to us all your (i) The cost to replace the rights of recovery against any lost or damaged property person or organization for any with property of corn- . loss you sustained and for which parable material and we have paid . or settled. You quality and used for the must also do everything neces- same purpose; sary to secure those rights and (li) The amount you actually 11 do nothing after loss to impair spend that is necessary them. i to repair or replace the x. Valuation - Settlement lost or damaged prop- erty; or (1) The value of any loss for pur- poses of coverage under this (Ill) The Limit of Insurance policy shall be determined as applicable to the lost or follows: damaged property. (a) Loss of "money" but only up CR 00 Ig,7 05 06 4 ISO Properties, Inc., 2005 Page 11 of 15 ❑ 1 With regard to Paragraphs c. Territory x.(1)(c)(i) through x.(1)(c)(iii), We will pay for loss caused by we will not pay on a any "employee" while temporarily replacement cost basis for outside the territory specified in any loss or damage: the Territory Condition E.1.u. for a i. Until the lost or dam- period of not more than 90 aged property is consecutive days. actually repaired or 3. Conditions Applicable To Insurin replaced; and Agreement A,3. ii. Unless the repairs or a. Deductible Amount replacement are made as soon as reasonably The Deductible Amount does not possible after the loss apply to legal expenses pal or damage. under Insuring Agreement A.3. If the lost or damaged b. Electronic And Mechanical Sig property is not repaired or natures replaced, we will pay on an We will treat signatures that are actual cash value basis. produced or reproduced elect (2) Any property that we pay for tronically, mechanically or by or replace becomes our other means the same as hand property. written signatures. 2. Conditions Applicable To Insuring c. Proof Of Loss Agreements A.1. And A.2. You must include with your proof a. Indemnification of loss any instrument involved in We will indemnify any of your that loss, or, if that is not pos sible, an affidavit setting forth th officials who are required by law amount and cause of loss. to give individual bonds for the faithful performance of their d. Territory duties against loss through "theft" We will cover loss that you sus- committed by "employees" who tain resulting directly from an serve under them, subject to the "occurrence" taking place any- applicable Limit of Insurance. where in the world. Territory b, Termination As To Any Em- Condition E.1.u. does not apply to ployee Insuring Agreement A.3. This Insuring Agreement ter- 4. Conditions Applicable To Insurin minates as to any "employee": Agreements A.5. And A.6. (1) As soon as: a. Armored Motor Vehicle Com- a) You; or panies (b) Any of your officials or em- Under Insuring Agreement A.6., ployees authorized to man- we will only pay for the amount age, govern or control your of loss you cannot recover: "employees" not in collusion (1) Under your contract with the with the "employee"; armored motor vehicle coma learn of "theft" or any other pany; and dishonest act committed by (2) From any insurance or in the "employee" whether before demnity carried by, or for #h� or after becoming employed benefit of customers of, the by you. armored motor vehicle corn- (2) On the date specified in a no- pany. tics mailed to the first Named b. Special Limit Of Insurance For Insured. That date will be at least 30 days after the date of Specified Property mailing. We will only pay up to $5,000 for We will mail or deliver our any one "occurrence" of loss of notice to the first Named In- or damage to manuscripts, draw- sured's last mailing address ings, or records of any kind, o- known to us. If notice is the cost of reconstructing them mailed, proof of mailing will be or reproducing any information sufficient proof of notice. contained in them. Page 12 cif 15 0 ISO Properties, Inc., 2005 CR 00 27 05 0 El 1 1 i 5.Conditions Applicable To Insuring mination is due to "theft" or Agreement A.7. any other dishonest act a. Special Limit Of Insurance For committed by the "ern- , Specified Property ployee"; We will only pay up to $5,000 for (b) Who you compensate di- any one "occurrence" rectly loss of by salary, wages or or damage to manuscripts, draw- commissions; and ings, or record's of any kind, or (c) Who you have the right to the cost of reconstructing them direct and control while or reproducing any information performing services for you; contained in them. (2) Any natural person who' is ' b. Territory furnished temporarily to you: We will cover loss that you sus- (a) To substitute for a per- tain resulting ,directly from an manent "employee" as de- "occurrence" taking place any- fined in Paragraph a.(1), who where in thei world. Territory is on leave; or Condition E.1.u.,does not apply to (b) To meet seasonal or short- Insuring Agreement A,7. term work load conditions; F. Definitions while that person is subject to ' 1. "Banking premises" means the in- your direction and control and tenor of that portion of any building performing services for you, occupied by a banking institution or excluding, however, any such similar safe depository. person while having care and ' 1 2. "Counterfeit money" means an custody of property outside imitation of "money" that is intended the "premises"; to deceive and .to be taken as (3) Any natural person who is genuine. I a arementsed to yb tween underou ou an a d®a ' 3. "Custodian" means you, or any labor leasing firm, to perform "em- ployee" while having care and cus- duties related to the conduct tody of property inside the "prem- ises", excluding any person while of your abusiness, but ry does not acting as a watchperson or janitor. as defined in Paragraph a.(2); 4. "Discover" or "discovered" means the time when you first become (4) Any natural person who is: 1 aware of facts which would cause a (a) A trustee, officer, employee, reasonable person' to assume that a administrator or manager, loss of a type covered by this policy except an administrator or has been or will be incurred, re- manager who is an in- gardless of when, the act or acts dependent contractor, 1 of causing or contributing to such loss any employee benefit plan; occurred, even though the exact and amount or details of loss may not then be known. (b) An official of yours while that person is engaged in ' "Discover" or "discovered" also handling "funds" or "other means the time when you first property" of any employee receive notice of an actual or benefit plan; potential claim in which it is alleged (5) Any natural person who is a ' 1 that you are liable to a third party former official, "employee', or i under circumstances which, if true, trustee retained as a con- would constitute a loss under this sultant while performing ser- policy. vices for you; or 5. "Employee": I (6) Any natural person who is a' a. "Employee" means: guest student or intern pur- (1) Any natural person: suing studies or duties, I. (a) While in ; your service and excluding, however, any such r he first 30 days person while having care and ' mediately after termination custody of property outside is such the "premises". of ser vice',e, unless 1 CR 00,27 05 06 i 0 ISO Properties, Inc., 2005 Page 13 of 15 0 i b. "Employee" does not mean any (1) An individual act; agent, independent contractor or (2) The combined total of all representative of the same gen- separate acts whether or not eral character not specified in related; or Paragraph 5.a. 6. "Forgery" means the signing of the (3) A series of acts whether or not name of another person or or- related; ganization with intent to deceive; it committed by an "employee" does not mean a signature which acting alone or in collusion with consists in whole or in part of one's other persons, during the Policy own name signed with or without Period shown in the Declarations, authority, in any capacity, for any except as provided under Con= purpose. dition E.1.n. or E.1.o. 7. "Fraudulent instruction" means: b. Under Insuring Agreement A.2.: a. An electronic, telegraphic, cable, (1) An individual act; teletype, telefacsimile or tele- (2) The combined total of all seer phone instruction which purports arate acts whether or not to have been transmitted by you, related; or but which was in fact fraudulently (3) A series of acts whether or not transmitted by someone else related; without your knowledge or con- committed by each "employee" sent; acting alone or in collusion with b. A written instruction (other than other persons, during the Policy those described in Insuring Period shown in the Declarations, agreement A.3.) issued by you, except as provided under Cone which was forged or altered by dition E.1.n. or E.1.o. someone other than you without your knowledge or consent, or c. Under Insuring Agreement A.3.: which purports to knowledge or (1) An individual act; consent, or which purports to have been issued by you, but was (2) The combined total of all sep- in fact fraudulently issued without arate acts whether or not re your knowledge or consent; or lated; or c. An electronic, telegraphic, cable, (3) A series of acts whether or not teletype, telefacsimile, telephone related; or written instruction initially re- ceived by you which purports to committed by a person acting have been transmitted by an alone or in collusion with other "employee" but which was in fact persons, involving one or more fraudulently transmitted by some- instruments, during the Policy one else without your or the Period shown in the Declarations, "employee's" knowledge or con- except as provided under Con- sent. dition E.1.n. or E.1.o. 8. "Funds" means "money" and "se- d. Under All Other Insuring Agree' curities". ments: 9. "Messenger" means you or any (1) An individual act or event; "employee" while having care and custody of property outside the (2) The combined total of all sep "premises". orate acts or events whether 0. "Money" means: or not related; or a. Currency, coins and bank notes in (3) A series of acts or event current use and having a face whether or not related; value; and committed by a person acting b. Travelers checks, register checks alone or in collusion with other and money orders held for sale to persons, or not committed by any; the public. person, during the Policy Period 11. "Occurrence" means: shown in the Declarations, except a. Under Insuring Agreement A.T.: as provided under Condition E.1.n. or E.1.o. Page 14 of 15 0 ISO Properties, Inc., 2005 CR 00 27 05 06, 0 i I 1 1 12. "Other property" means any tangible a meter) in current use; and property other than "money" and b. Evidences of debt issued in "securities" that has intrinsic value. connection with credit or charge "Other property" ',does not include cards, which cards are not issued ' computer programs, electronic data by you; or any property specifically excluded under this policy. but does not include "money". 13. "Premises" means the interior of that 17. "hearty heft" ctans the edeprivationunlula taking gtlo , portion of any building you occupy in conducting your) business. Insured. I 1 1 14. "Robbery" means the unlawful taking 18. "Transfer account" means an ac- of property from the care and cus- count maintained by you at a fi- tody of a person by one who has: nancial institution from which you a. Caused or threatened to cause can initiate the transfer, payment or that person bodily harm; or delivery of "funds": b. Committed an obviously unlawful a. By means of electronic, tele- graphic, cable, teletype, tele- act witnessed by that person. facsimile or telephone instruc- 15. "Safe burglary" means the unlawful tions communicated directly taking of: through an electronic funds a. Property from 1 within a locked transfer system; or safe or vault by a person un- b. By means of written instructions lawfully entering the safe or vault (other than those described in as evidenced by marks of forcible Insuring Agreement A.3.) estab- entry upon u its exterior; or lishingthe conditions under b. A safe or vault from inside the which such transfers are to be "premises". initiated by such financial in- 1 stitution through an electronic 1 16. "Securities" means negotiable and funds transfer system. 1 nonnegotiable instruments or con- 19. "Watchperson" means anyarson tracts representing' either "money" or p property and includes: you retain specifically to have care a. Tokens, tickets, revenue and other and custody of property inside the (whether represented bypremises" and who has no other stamps P duties. actual stamps or unused value in 1 1 CR 00'127 05 06 0 ISO Properties, Inc., 2005 Page 15 of 15 G7 1 1 ENDORSEMENT# 1 T is endorsement, effective 12;01 am December 31, 2008 forms a part of policy number 01-420-38-13 ued to WASHINGTON CITIES INSURANCE AUTHORITY b National Union Fire Insurance Company of Pittsburgh, Pa. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. COVERAGE TERRITORY ENDORSEMENT P.Ilyment of loss under this policy shall only be made in full compliance with all United S.:tes of America economic or trade sanction laws or regulations, including, but not li ited to, sanctions, laws and regulations administered and enforced by the U.S. Treasury Department's Office of Foreign Assets Control ("OFAC"). v • � i AUTHORIZED REPRESENTATIVE END 001 89644 (7/05) Page 1 of 1 ENDORSEMENT# 2 CRIME AND FIDELITY CR 02 10 08 07 This endorsement, effective 12:01 am December 31, 2008 forms a part of ' hpolicy number 01-420;-38-13 I issued to WASHINGTON CITIES INSURANCE AUTHORITY by National Union' Fire Insurance Company of Pittsburgh, Pa. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. WASHINGTON CHANGES This endorsement modifies insurance provided under the following: COMMERCIAL CRIME1POLICY EMPLOYEE THEFT AND FORGERY POLICY GOVERNMENT CRIME POLICY KIDNAP/RANSOM AND EXTORTION POLICY A. The Cancellation Of PolicyCondition the refund will be pro rata. If the is replaced by the following: first Named Insured cancels, the CANCELLATION OF POLICY refund will be at least 90% of the (1) The first Named' Insured shown in pro rata refund. The cancellation will be effective even if we have the Declarations may cancel this not made or offered a refund. policy by mailing or delivering to us advance written notice of can- (6) If notice is mailed, proof of mailing cellation. will be sufficient proof of notice. foll owing o added We may cancel this policy by mail- B. The I wmg is ad ed and supersedes ing or delivering Ito the first Named any other provision to the contrary: Insured and the1 first Named In- NONRENEWAL sured's agent or ;broker written no- 1. We may elect not to renew this tice of cancellation, including the policy by mailing or delivering writ- actual reason for the cancellation, ten notice of nonrenewal, stating to the last mailing address known the reasons for nonrenewal, to the to us, at least: first Named Insured and the first (a) 10 days before the effective Named Insured's agent or broker, at date of cancellation if we cancel their last mailing addresses known for nonpayment of premium; or to us. We will also mail to any oth- (b) 45 days before the effective er person shown in the policy to date of cancellation if we cancel have an interest in any loss which for any other (reason. may occur under this policy, at the last mailing address known tol us, (3) We will also mail or deliver to any written notice of renewal. We will other person shown in this policy mail or deliver these notices at to have an interest in any loss least 45 days before the: which may occur, under this policy, at their last mailing address known a. Expiration of the policy; or to us, written notice of cancellation, b. Anniversary date of this policy if prior to the effective date of can- this policy has been written for cellation. This notice will be the a term of more than one year. same as that mailed or delivered to Otherwise, we will renew this 'pol- the first Named Insured. icy unless: (4) Notice of cancellation will state the a. The first Named Insured fails to effective date of cancellation. The a the renewal II policy period wild end on that date. pay premiumw after we have expressed our willing 15) If this policy is cancelled, we will ness to renew, including a send the first Named Insured any statement of the renewal pre- premium refund due. If we cancel, mium, to the first Named, In- END 002 CR 02 10 08 07 0 ISO Properties, Inc4006I Page 1 of 2 El 1 , i , ENDORSEMENT# 2 (continued) sured and the first Named In- preciation. However, we will not sured's insurance agent or pay more than the least of the fol- broker, at least 20 days before lowing: the expiration date; or a. The Limit of Insurance applica- b. Other coverage acceptable to ble to the lost or damaged the insured has been procured property; prior to the expiration date of b. The amount it would cost to re- the policy. place the lost or damageid C The Transfer Of Rights Of Recovery property at the time of the loss Against Others To Us Condition is re- with new property of comparal- placed by the following: ble material and quality and TRANSFER OF RIGHTS OF RECOVERY used for the same purpose; or AGAINST OTHERS TO US c. The amount you actually spend If any person or organization to or for that is necessary to repair or whom we make payment under this replace the lost or damaged insurance has rights to recover dam- property. ages from another, those rights are 2. We will not pay on a replacement transferred to us to the extent of our cost basis for any loss or damage: payment. That person or organization a. Until the lost or damaged prop- must do everything necessary to se- erty is actually repaired or reI cure our rights and must do nothing placed; and after loss to impair them. D Paragraph (1)(c) of the Valuation - b. Unless the repairs or replace; ment are made as soon as rea; Settlement Condition is replaced by sonably possible after the loss the following: or damage. 1. Loss of, or loss from damage to, If the lost or damaged other property" or loss from dam- g property ill age to the "premises" or its exterior not repaired or replaced,, we will for the replacement cost of the pay on an actual cash value basis. property without deduction for de- A L OTHER TERMS, CONDITIONS AND EXCLUSIONS REMAIN UNCHANGED. 6:72 AUTHORIZED REPRESENTATIVE END 002 Page 2 of 2 A ISO Properties, Inc4006I CR 02 10 08 07 0 , II II II ENDORSEMENT# 3 11 1• , i12:01 December 31,`Th s endorsement, effective dlll2008 forms a part of G,poliicy number 01-4201;3$-13 lissued to WASHINGTON CITIES INSURANCE AUTHORITY 11 Illb National Union' Fire Insurance Company of Pittsburgh, Pa. 11 vP Y 9 , II NOTICE OF CLAIM (REPORTING BY E-MAIL) II 11 IIIn consideration of the remium charged, it is herebyunderstood and agreed as follows: P 9 9 III 1 Ii1. Email Reporting of Claims: In addition to the postal address set forth for any Notice of II Claim Reporting under this policy, such notice may also be given in writing pursuant to the policy's othler terms and conditions to the Insurer by email at the following email address: c-claim@aig•com Your email must reference the policy number for this policy. The date of the I Insurer's receipt of the emailed notice shall constitute the date of notice. , In addition to Notice of Claim Reporting via email, notice may also be given to,the i Insurer by mailing such notice to: c-Claim'for Financial Lines, AIG Domestic Claims, 1,1 Inc., 175 Water Street, 9th Floor, New York, New York 10038 or faxing such notice to (866) 227- 1750. I 1 2. Definitions: For this endorsement only, the following definitions shall apply: , III (a) "Insurer" means the "Insurer," "Underwriter" or "Company" or other name II 'II specifically ascribed in this policy as the insurance company or underwriter for this policy.p Y (b) "Notice of Claim Reporting" means "notice of claim/circumstance," "notice of II loss" or other reference in the policy designated for reporting of claims, loss or occurrences or situations that may give rise or result in loss under this policy. (c) "Policy means the policy, bond or other insurance product to which this endorsementlis attached. 11 I 3. This endorsement] does not apply to any Kidnap & Ransom/Extortion Coverage IIISection, if any, provided by this policy. , TALL OTHER TERMS, CONDITIONS AND EXCLUSIONS REMAIN UNCHANGED. 11 1,1 I , II II 1: 4 , 4 1, II, 1 , I � AUTHORIZED REPRESENTATIVE II 1 ill ®American International Group, Inc. All rights reserved p g I END 003 I(99758 (i8 08 1 1,1di / ) Page 11 II 1 ENDORSEMENT# 4 CRIME AND FIDELITY CR 25 19 05 06 This endorsement, effective 12:01 am December 31, 2008 forms a part of policy number 01.420-38-13 issued to WASHINGTON CITIES INSURANCE AUTHORITY b • National Union Fire Insurance Company of Pittsburgh, Pa. T IS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADD FAITHFUL PERFORMANCE OF DUTY COVERAGE GOVERNMENT CRIME COVERAGE FOR GOVERNMENTFORM EMPLOYEES T is endorsement modifies insurance provided under the following: GOVERNMENT CRIME POLICY a d applies to the Insuring Agreements designated below: SCHEDULE Insuring Agreement Limit Of Insurance lA Employee Theft - Per Loss Coverage $2,500,000 J Employee Theft - Per Employee Coverage Ir'formation required to complete this Schedule, if not shown above, will be shown in the Declarations. 1. The following is added to the Employee ployee", except the conversion of Theft Insuring Agreement designated property of other parties held b' above: you in any capacity. We will pay for loss or damage to 3. The Indemnification Condition is re- "money", "securities" and ."other prop- placed by the following: erty" resulting directly from the failure We will indemnify any of your officialls of any "employee" to faithfully perform who are required by law to give bonds his or her duties as prescribed by law, for the faithful performance of thek when such failure has as its direct and duties against loss through the failur immediate result a loss of your covered of any "employee" under the super- property. The most we will pay for loss vision of that official to faithfully pert arising out of any one "occurrence" is form his or her duties as prescribed b, the Limit of Insurance shown in the eCt Schedule. That Limit, is part of, not in law, when such failure has as its dyour addition to, the Limit of Insurance and immediate result a loss of your covered property. shown in the Declarations. 2. 4. Part Cl) of the Termination As To Any The following exclusions are added to Employee Condition is replaced by the Section D.2. Exclusions: following: a. Loss resulting from the failure of (1) As soon as: any entity acting as a depository for your property or property for which (a) You; or you are responsible. (b) Any official or employee auth- b. Damages for which you are legally orized to manage, govern or liable as a result of: control your "employees" learn of any act committed by the "em (1) The deprivation or violation of the ployee" whether before or after civil rights of any person by an becoming employed by you which "employee"; or would constitute a loss covered (2) The tortious conduct of an "ern- under the terms of the Employe END 004 CR 25 19 05 06 C. ISO Properties, Inc., 005I Page 1 of 2 0 I I ENDORSEMENT# 4 (Continued) Theft Insuring Agreement, as amend- ' ed by this endorsement. ALL OTHER TERMS, CONDITIONS AND EXCLUSIONS REMAIN UNCHANGED, ic.2 _ I ' AUTHORIZED REPRESENTATIVE END 004 Page 2''of 2 0. ISO Properties, Inc.,?0051 CR 25 19 05 0,6 CI I ENDORSEMENT# 5 CRIME AND FIDELITY CR 25 20 08 .7 This endorsement, effective 12:01 am December 31, 2008 forms a part of pilicy number 01-420-38-13 issued to NASHINGTON CITIES INSURANCE AUTHORITY b5 National Union Fire Insurance Company of Pittsburgh, Pa, THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADD CREDIT, DEBIT OR CHARGE CARD FORGERY This endorsement modifies insurance provided under the following: COMMERCIAL CRIME COVERAGE FORM COMMERCIAL CRIME POLICY EMPLOYEE THEFT AND FORGERY POLICY GOVERNMENT CRIME COVERAGE FORM GOVERNMENT CRIME POLICY and applies to the Forgery Or Alteration Insuring Agreement: SCHEDULE Limit Of Insurance Covered Instruments $12,500,000 x includes written Instruments required in conjunction with any credit, debit or charge card issued to you or any "employee" for business purposes. Limited to written Instruments required in conjunction with any credit, debit or charge card Issued to you or any "employee" for business purposes. Iriformation required to complete this Schedule, if not shown above, will be shown in tie Declarations. 1. Covered Instruments either includes or 3. The following exclusion is added to is limited to, whichever is indicated as Section D.: applicable in the Schedule, written The Forgery Or Alteration Insuring ' instruments required in conjunction Agreement does not apply to: with any credit, debit or charge card issued to you or any "employee" for NON-COMPLIANCE WITH CREDIT, business purposes. DEBIT OR CHARGE CARD ISSUER'S 2. The most we will pay in any one REQUIREMENTS "occurrence" is the Limit of Insurance Loss arising from any credit, debit or shown in the Schedule. charge card if you have not complied fully with the provisions, conditions Or other terms under which the card was issued. ALL OTHER TERMS, CONDITIONS AND EXCLUSIONS REMAIN UNCHANGED. a „:32. AUTHORIZED REPRESENTATIVE END 005 CR 25 20 08 07 Q ISO Properties, Inc.4006l Page 1 of " ❑ ENDORSEMENT# 6 This endorsement, effective 12:01 am December 31, 2008 forms a part of policy number 01-42038-13 illissued to WASHINGTON CITIES INSURANCE AUTHORITY by National Union Fire Insurance Company of Pittsburgh, Pa. ADDITIONAL NAMED INSURED ADDITIONAL NAMED INSURED This endorsement modifies insurance provided under the following: COMMERCIAL CRIME POLICY GOVERNMENT CRIME POLICY Schedule Thel following Insured(s) is/are added as Named Insured(s): NAMED INSURED Aberdeen Arlington 1 Auburn Bainbridge Island Battle Ground Benton City Bonney Lake Bothell Burien II Burlington Camas Cashmere Centralia Chehalis II Chelan Cheney Clarkston Clyde Hill Coupeville Covington 11, 11 END ,I I ENDORSEMENT# 6 (Continued} T is endorsement, effective 12:01 am December 31, 2008 forms a part of policy number 01-420-38-13 i-sued to WASHINGTON CITIES INSURANCE AUTHORITY b National Union Fire Insurance Company of Pittsburgh, Pa. owlitz-Wahkiakum Council of 1.overnments 14 es Moines dIgewood „dmonds :lima emergency Services 1 iumclaw ii deral Way life is eorge Iloldendale 41 randview €frays Harbor 911 Iloquiam 1 saquah Kelso llenmore gent rkland Conner .cey :ke Forest Park :ke Stevens kewood avenworth •ng Beach •ngview •TT abton END 6 i ENDORSEMENT# 6 (Continued) ,This endorsement, effective 12:01 am December 31, 2008 forms a part of fpolicy number 01-420J38-13 issued to WASHINGTON CITIES INSURANCE AUTHORITY 'by National Union Fire Insurance Company of Pittsburgh, Pa. Maple Valley Marysville Marysville Fire Dist. 1 McCleary Medical Lake Me'dina Mercer Island Metropolitain Park District Mill Creek Milton Monroe Monroe Fire District ' Moses Lake I Mount Vernon Mountlake Terrace Mukilteo Multi-Agency Communications (MACC 911) 1 Newcastle Normandy Park North Bonneville Northshore Utility District Oak Harbor Ocean Shores Olympia Othello Port Angeles Port Townsend Pullman ;Puyallup 11 I END6 ENDORSEMENT# 6 (Continued) T is endorsement, effective 12:01 am December 31, 2008 forms a part of pi licy number 01-420-38-13 i- ued to WASHINGTON CITIES INSURANCE AUTHORITY b National Union Fire Insurance Company of Pittsburgh, Pa. "ichland 1 '.ammamish I I Ilhelton horeline '�Iilver lake Water &Sewer Dist. IIlkagit 911 I nohomish 1Inohomish Communications '•nohomish Police Auxiliary Comm. IInoqualmie Ioap Lake Ipokane Valley itanwoodm Iteilacoo I 1lumner hurston Regional Planning oppenish umwater nion Gap Iniversity Place galley Communications I ?alley Regional Fire Authority 1Varden 1JNJashougal \'Vestport WI oodinville \Noodway Ilakima Conference of Govts. illah END 6 II I ENDORSEMENT# 6 (Continued) This endorsement, effective 12:01 am December 31, 2008 forms a part of policy number 01-420-38-13 ,issued to WASHINGTON CITIES INSURANCE AUTHORITY by National Union Fire Insurance Company of Pittsburgh, Pa. No Limit of Insurance during any period will be cumulative with any other amount applicable to the same coverage during any other period. ALL OTHER TERMS, CONDITIONS AND EXCLUSIONS REMAIN UNCHANGED. 4 � 4 AUT ORIZED REPR EN ATIVE American International Group, Inc. All rights reserved. END 6 ENDORSEMENT# 7 CRIME AND FIDELITY CR 20 02 08 07 This endorsement, effective December 31, 2008 forms a part of . p licy number 01.420.38.13 is ued to WASHINGTON CITIES INSURANCE AUTHORITY b National Union Fire Insurance Company of Pittsburgh, Pa. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. POLICY CHANGE (LOSS SUSTAINED FORM) This endorsement modifies insurance provided under the Loss Sustained Form version of th5 following: COMMERCIAL CRIME COVERAGE FORM COMMERCIAL CRIME POLICY EMPLOYEE THEFT AND FORGERY POLICY GOVERNMENT CRIME COVERAGE FORM GOVERNMENT CRIME POLICY SCHEDULE Change Number Date Of Issue Effective Date Of Change 12:01 A.M. on: 1 December 31, 2008 December 31, 2008 The Named Insured is changed to: The following Insured(s) is added as a Named Insured: The following Insured(s) is deleted as a Named Insured: The Mailing Address is changed to: The Policy Period is: Extended to: Reduced to: The following Insuring Agreement{s) is: Added to the Coverage Form/Policy Insuring Agreement(s) Limit Of Insurance Deductible Amount END 007 CR 20 02 08 07 0 ISO Properties, lnc.,?006I Page 1 of 3 ❑ • ENDORSEMENT# 7 (continued) nDeleted from the Coverage Form/Policy Insuring Agreements) Limit Of Insurance Deductible Amount XI Changed as respects the Limit(s) of Insurance and/or Deductible Amount(s) Insuring Agreement(s) Limit Of Insurance Deductible Amount Olympia, Richland, and Auburn $25,000 The following Endorsements) is: Added to the Covierage Form/Policy • Endorsement(s) Limit Of Insurance Deleted from the 'Coverage Form/Policy Endorsement(s) Limit Of Insurance nChanged as respects the Limits) of Insurance Endorsement(s) Limit Of Insurance Information required tolcomplete this Schedule, if not shown above, will be shown in the Declarations. Application of changes affected by this an "occurrence" taking place at any Endorsement: time, whether before or after the Addition Of Deductible Or Increase In Ef- fective7. Date of Change which is "dis- covered by you after the Effective Deductible Amount Date of change, This change applies to loss or damage 2. Deletion Of Coverage Or Decrease In that you sustain resulting directly from Deductible Amount END 007 Page 2lof 3 ek ISO Properties, Inc., 2006 CR 20 02 08 07 ❑ ENDORSEMENT# 7 (continued) This change applies to loss or damage you after the Effective Date of that you sustain resulting directly from change; and also an "occurrence" taking place at any b. Before the Effective Date of Change time, whether before or after the Ef- if "discovered" by you after 1 year fective Date of Change which is "dis- from that date. covered" by you after the Effective Date of change. 3. All Changes Other Than In Para- graphs 1. And 2. 2 Deletion Of Coverage Or Decrease In This change applies to loss or damage Limit Of Insurance that you sustain resulting directly from This change applies to loss or damage an 'occurrenceT� taking place on or that you sustain resulting directly from after the Effective Date of Change an "occurrence" taking place: which is "discovered" by you after the a. On or after the Effective Date of Effective Date of change. Change which is "discovered" by i Accepted I First Named Insured: I Name: I Title: A L OTHER TERMS, CONDITIONS AND EXCLUSIONS REMAIN UNCHANGED. 1 a 6:::2 AUTHORIZED REPRESENTATIVE END 007 CR 20 02 08 07 0 ISO Properties, Inc4006( Page 3 of 3 0 II I 1 ENDORSEMENT# 8 This endorsement, effective 12:01 am December 31, 2008 forms a part of policy number 01-420;38-13 issued to WASHINGTON CITIES INSURANCE AUTHORITY by National Union:Fire Insurance Company of Pittsburgh, Pa, BONDED EMPLOYEES EXCLUSION DELETED II This endorsement modifies insurance provided under the following: GOVERNMENT CRIME POLICY In Section D. Exclusions, subparagraph 2., the exclusion entitled Bonded Employees is deleted in its entirety. jALLIOTHER TERMS, CONDITIONS AND EXCLUSIONS REMAIN UNCHANGED. (---7/ 62 AUTHORIZED REPRESENTATIVE American International Group, Inc. All rights reserved END 008 9541948/017) Page 1 of 1 ENDORSEMENT# 9 T is endorsement, effective 12:01 am December 31, 2008 forms a part of p licy number 01-420-38-13 i ued to WASHINGTON CITIES INSURANCE AUTHORITY i Y b National Union Fire Insurance Company of Pittsburgh, Pa, CRIME ADVANTAGES" This endorsement modifies insurance provided under the following: GOVERNMENT CRIME POLICY 1. E. Conditions, Conditions Applicable To Insuring Agreements A.1. And A.2., Termination As To Any Employee, section (2) is deleted in its entirety and replaced with the following: (2) On the date specified in a notice mailed to the first Named Insured. That date will be at least 60 days after the date of mailing. We will mail or deliver notice to the first Named insured's last mailing address known to us. If notice is mailed, proof of mailing will be sufficient proof of notice. 2. E. Conditions, Conditions Applicable To All Insuring Agreements, Cancellation Of Policy, section (2) is deleted in its entirety and replaced with the following: (2) We may cancel this policy by mailing or delivering to the first Named Insured written notice of cancellation at least: (a) 10 days before the effective date of cancellation if we cancel for non-payment of premium; or (b) 60 days before the effective date of cancellation if we cancel for any other reason. 3. F. Definitions, "Employee," a. (1)(a) is deleted in its entirety and replaced with the following: (a) While in your service and for the first 60 days immediately after termination of service, unless such termination is due to "theft" or any other dishonest act committed by the "employee'; 4. F. Definitions, "Employee," a. is amended by adding the following at the end thereof: "Employee" is also deemed to include: (a) Any of your directors, trustees or non-compensated officers while performing acts within the scope of the usual duties of an "employee" (b) Any of your directors or trustees who are members of any of your elected or appointed committees to perform on your behalf specific, as distinguished from general, directorial acts (c) Students gaining work experience (d) Any non-compensated natural person other than one who is a fund solicitor, while performing service for you that are usual to the 'American International Group, Inc. All rights reserved END 009 95427 (8/07) Page 1 of 2 ENDORSEMENT# 9 (continued) (e) Any of your part-time "employees" (f) Any natural person, whether or not compensated, while performing , services for you as the chairman, or a member of any committee 5. With respect to a ,foss for which coverage is provided by this policy and which is sustained partly during the period of other policies providing coverage for such loss issued to you or to any predecessor in interest of yours and terminated or canceled or allowed to expire as of the inception date of this policy, the amount of the deductible that is applicable to the portion of the loss sustained during this Policy Period shall be reduced, in whole or in part, by: (a) The amount of the loss which is sustained by you during the period of such other policies if such loss is less than the amount of the deductible applicable to that loss under such other policies, or (b) The amount of the deductible applicable to the loss sustained by you during the period of such other policies if the applicable deductible is less than the amount of the loss sustained during such period. ALL OTHER TERMS, CONDITIONS AND EXCLUSIONS REMAIN UNCHANGED. AUTHORIZED REPRESENTATIVE American International Group, Inc. All rights reserved END 009 9542711(8IQ7) Page 2 of 2 ENDORSEMENT# 30 CRIME AND FIDELITY CR 25 12 08 07 T1 is endorsement, effective 12:01 am December 31, 2008 forms a part of policy number 01-420-38-13 i ued to WASHINGTON CITIES INSURANCE AUTHORITY b National Union Fire Insurance Company of Pittsburgh, Pa. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. INCLUDE TREASURERS OR TAX COLLECTORS AS EMPLOYEES T is endorsement modifies insurance provided under the following: GOVERNMENT CRIME COVERAGE FORM GOVERNMENT CRIME POLICY SCHEDULE 1 Treasurers Or Tax Collectors Any Treasurers or Tax Collector of any of those named as Insured 1 1 1 nformation required to complete this Schedule, if not shown above, will be shown in he Declarations. 1. The definition of "employee" is amend- ed to include your treasurers or tax collectors shown in the Schedule. 2. Exclusion D.2.d. Treasurers Or Tax Col- lectors is deleted. AL_ OTHER TERMS, CONDITIONS AND EXCLUSIONS REMAIN UNCHANGED. (.7.X 62. f4i. AUTHORIZED REPRESENTATIVE END 010 CR 25 12 u8 07 0 ISO Properties, Inc.,?0061 Page 1 of 1 ❑ ENDORSEMENT# 11 CRIME AND FIDELITY CR 25 41 08 07 • This endorsement, effective 12:01 am December 31, 2008 forms a part of policy number 01-4201 38-13 issued to WASHINGTON CITIES INSURANCE AUTHORITY 'by National Unionl Fire Insurance Company of Pittsburgh, Pa, THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. INCLUDE DESIGNATED PERSONS OR CLASSES OF PERSONS AS EMPLOYEES 'This endorsement modifies insurance provided under the following: COMMERCIAL CRIME COVERAGE FORM COMMERCIAL CRIME POLICY 11 EMPLOYEE THEFT AND FORGERY POLICY GOVERNMENT CRIME COVERAGE FORM GOVERNMENT CRIME POLICY and applies to the Employee Theft Insuring Agreement: SCHEDULE Persons Or Classes Of Persons Interim nt rim Financial Director Information required to complete this Schedule, if not shown above, will be shown in ' the Declarations. The definition of "employee" is amended to include any natural person or group of persons named or described in the Schedule. 1 ALL OTHER TERMS, CONDITIONS AND EXCLUSIONS REMAIN UNCHANGED. it Cam'. AUTHORIZED REPRESENTATIVE END 011 CR 2541 08 07 0 ISO Properties, Inc.,?006I Page 1 of1 1 0 ENDORSEMENT# 12 This en. rsement, effective 12:01 am December 31, 2008 forms a part of policy n 'mber 01-420-38-13 issued ti. WASHINGTON CITIES INSURANCE AUTHORITY 1 by ational Union Fire Insurance Company of Pittsburgh, Pa. FORMS INDEX ENDORSEMENT The con ents of the Policy is comprised of the following forms: EDITION FORM N ,MBER DATE FORM TITLE CRDSO4 08/07 GOVERNMENT CRIME POLICY DECLARATIONS CR0027 05/06 GOVERNMENT CRIME POLICY (LOSS SUSTAINED FORM) 89644 07/05 COVERAGE TERRITORY ENDORSEMENT (OFAC) CR0210 08/07 WASHINGTON CHANGES 99758 08/08 NOTICE OF CLAIM (REPORTING BY E-MAIL) CR2519 05/06 ADD FAITHFUL PERFORMANCE OF DUTY COVERAGE FOR GOVERNMENT EMPLOYEES CR2520 08/07 ADD CREDIT, DEBIT OR CHARGE CARD FORGERY ADDITIONAL NAMED INSURED CR2002 08/07 POLICY CHANGE (LOSS SUSTAINED FORM) 95419 08/07 BONDED EMPLOYEES EXCLUSION DELETED 95427 08/07 CRIME ADVANTAGE CR2512 08/07 INCLUDE TREASURER OR TAX COLLECTORS AS EMPLOYEES CR2541 08/07 INCLUDE DESIGNATED PERSONS OR CLASSES OF PERSONS AS EMPLOYEES 78859 10/01 FORMS INDEX ENDORSEMENT AL , OTHER TERMS, CONDITIONS AND EXCLUSIONS REMAIN UNCHANGED. 42 b/ 4. AUTHORIZED REPRESENTATIVE END 012 78859 (10 101) Page 1 of 1 National Union Fire Insurance Company of Pittsburgh, Pa. CLAIM REPORTING INFORMATION SHEET Reporting Under Policy/Bond Number: 01-420-38-13 Type Of Coverage: GC0700 Insured's Name, As Given On Policy Declaration(Face Page): WASHINGTON CITIES INSURANCE AUTHORITY Contact Person: Title: Phone:_( ) - Ext Case or Claimant Name: If The Party Involved is Different From "Insured" Name (As Given On The Policy Declaration) State Relationship: Insurance Broker/Agent:' MARSH USA, INC. Address: 500 W MONROE;ST #3600 CHICAGO, IL 60661 Contact: PAULEAN THOMAS Phone: Please Provide The Information Requested Above So That We Can Expedite Our Service To You. Send Notice Of Claims To: c-Claim for Financial Lines Phone: (888) 602-5246 AIG Domestic Claims, Inc. Fax: (866) 227- 1750 175 Water Street Email: c-Claim@AIG.com 9th Floor New York, NY 10038 centralized Customer Link and Information Management ENDORSEMENT# 13 CRIME AND FIDELITY CR20020807 This endorsement, effective January 1, 2009 forms a part of pplicy number 01.420.38-13 issued to WASHINGTON CITIES INSURANCE AUTHORITY by National Union Fire Insurance Company of Pittsburgh, Pa. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. POLICY CHANGE (LOSS SUSTAINED FORM) This endorsement modifies insurance provided under the Loss Sustained Form version of the following: COMMERCIAL CRIME COVERAGE FORM COMMERCIAL CRIME POLICY EMPLOYEE THEFT AND FORGERY POLICY GOVERNMENT CRIME COVERAGE FORM GOVERNMENT CRIME POLICY SCHEDULE Change Number Date Of issue Effective Date Of Change 12:01 A.M. on: 2 January 28, 2009 January 1. 2009 I j The Named Insured is changed to: The following Insured(s) is added as a Named Insured: Snohomish County Emergency Radio System : City of Renton The following Insured(s) is deleted as a Named Insured: The Mailing Address Is changed to: The Policy Period is: Extended to: Reduced to: The following Insuring Agreement(s) is: Added to the Coverage Form/Policy Insuring Agreement(s) Limit Of Insurance Deductible Amount END 013 CR 20 02 38 07 0 ISO Properties, Inc.,2006 Page 1 of 3 ❑ ENDORSEMENT# 13 (continued) ElDeleted from the Coverage Form/Policy Insuring Agreement(s) Limit Of Insurance Deductible Amount, Changed as respects the Limit(s) of Insurance and/or Deductible Amount(s) Insuring Agreement(s) Limit Of Insurance Deductible Amount The following Endorsement(s) is: Added to the Coverage Form/Policy Endorsement(s) Limit Of Insurance Deleted from the'Coverage Form/Policy Endorsement(s) Limit Of Insurance Changed as respects the Limit(s) of Insurance Endorsement(s) Limit Of Insurance Information required to, complete this Schedule, if not shown above, will be shown in the Declarations. Application of changes affected by this an "occurrence" taking place at any Endorsement: time, whether before or after the Ef- fective1. Addition Of Deductible Or Increase to Date of Change which is 'dis- Amount covered" by you after the Effective Deductible Date of change. This change applies to loss or damage 2. Deletion Of Coverage Or Decrease In that you sustain resulting directly from Deductible Amount END 013 Page 2 of 3 c ISO Properties, Inc.,2006 CR 20 02 08 07 ❑ ENDORSEMENT# 13 (continued) This change applies to loss or damage you after the Effective Date of that you sustain resulting directly from change; and also an "occurrence" taking place at any b. Before the Effective Date of Chang time, whether before or after the Ef- if "discovered" be J fective Date of Change which is "dis- Y you after 1 year from that date. covered" by you after the Effective Date of change. 3. All Changes Other Than In Para- 2. Deletion Of Coverage Or Decrease In graphs 1. And 2. Limit Of Insurance This change applies to loss or damage that you sustain resulting directly from This change applies to loss or damage an "occurrence" taking place on oir that you sustain resulting directly from after the Effective Date of Change an "occurrence"taking place: which is "discovered" by you after the a. On or after the Effective Date of Effective Date of change. Change which is "discovered" by Accepted First Named Insured: Nlme: T tie: ALL OTHER TERMS, CONDITIONS AND EXCLUSIONS REMAIN UNCHANGED. a c:::2 4 AUTHORIZED REPRESENTATIVE END 013 CR 20 02 08 07 4 ISO Properties, Inc.,?0061 Page 3 of 3 ❑ ENDORSEMENT# 14 CRIME AND FIDELITY, CR 20 02 08 07 This endorsement, effective December 31, 2008 forms a part of I:policy number 01-4201-38-13 issued to WASHINGTON CITIES INSURANCE AUTHORITY by National Unionl Fire Insurance Company of Pittsburgh, Pa. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. POLICY CHANGE (LOSS SUSTAINED FORM) This endorsement modifies insurance provided under the Loss Sustained Form version, of 'the following: COMMERCIAL CRIME COVERAGE FORM 'COMMERCIAL CRIME POLICY ,EMPLOYEE THEFT AND FORGERY POLICY GOVERNMENT CRIME COVERAGE FOR M GOVERNMENT CRIME POLICY SCHEDULE. Change Number Da te ate Of Issue Effective Date Of Change 3 January 28, 2009 12:01 A.M. on:December 31, 2008 The Named Insured is changed to: I ' ' ;The following Insured(s) is added as a Named Insured: The following Insured(s) is deleted as a Named Insured: City of Sammamish 'The Mailing Address is changed to: II The Policy Period is: Extended to: Reduced to: ,The following Insuring Agreement(s) is: nAdded to the' Coverage Form/Policy Insuring Agre;ement(s) Limit Of Insurance Deductible Amount' END 074 CR 20',02 08 07 0 ISO Properties, Inc.,2006 Page 110 a O ENDORSEMENT# 14 (continued) Deleted from the Coverage Form/Policy Insuring Agreement(s) Limit Of Insurance Deductible Amount II Changed as respects the Limit(s) of Insurance and/or Deductible Amount(s) 1 Insuring Agreement(s) Limit Of Insurance Deductible Amount e following Endorsement(s) is: Added to the Coverage Form/Policy II Endorsement(s) Limit Of Insurance , I Deleted from the Coverage Form/Policy 1 I Endorsement(s) Limit Of insurance Changed as respects the Limit(s) of Insurance 1 Endorsement(s) Limit Of Insurance I I formation required to complete this Schedule, if not shown above, will be shown in t ie Declarations. Ap lication of changes affected by this an "occurrence" taking place at any En orsement: time, whether before or after the Ef- fective ddltion Of Deductible Or Increase In fective Date of Change which is "dis- covered' by you after the Effective beductible Amount Date of change. his change applies to loss or damage 2. Deletion Of Coverage Or Decrease In that you sustain resulting directly from Deductible Amount END 014 Page 2 of 3 Q ISO Properties, lnc.,2006 CR 20 02 08 07 0 ENDORSEMENT# 14 (continued) This change applies (to loss or damage you after the Effective Date of thatyou sustain resultingdirectlyfrom change; and also 9 Ian "occurrence" taking place at any b. _Before the Effective Date of Change ' time, whether before or after the Ef- if "discovered" by you after 1 year fective Date of Change which is "dis- from that date. 'covered" by you after the Effective Date of change. 3. All Changes Other Than In Para- 2. Deletion Of Coverage Or Decrease In graphs 1. And 2. Limit Of Insurance This change applies to loss or damage that you sustain resulting directly from This change applies to loss or damage an 'occurrence" taking place on or that you sustain resulting directly from after the Effective Date of Change an "occurrence" taking place: which is "discovered" by you after the a. On or after the Effective Date of Effective Date of change. Change which is "discovered" by • Accepted First Named Insured: Name: I Title: 'ALL OTHER TERMS, CONDITIONS AND EXCLUSIONS REMAIN UNCHANGED. (1/1 672. AUTHORIZED REPRESENTATIVE I � END 014 CR 20 02 08 07 ® ISO Properties, Inc. 3 A ,�006� Page 9 of 3 0 ENDORSEMENT# 15 This endorsement, effective 12:01 am December 31, 2008 forms a part of policy ni.Jmber 01-420-38-13 issued to WASHINGTON CITIES INSURANCE AUTHORITY by PationaT Union Fire Insurance Company of Pittsburgh, Pa, FORMS INDEX (AMENDED) In consi eration of the premium charged, it is hereby understood and agreed that the "Forms Index" Endorse ent is amended to include the following: EDITION FORM N MBER DATE FORM TITLE CR2002 08/07 POLICY CHANGE (LOSS SUSTAINED FORM) CR2002 08/07 POLICY CHANGE (LOSS SUSTAINED FORM) 01/05 FORMS INDEX (AMENDED) ALL OTHER TERMS, CONDITIONS AND EXCLUSIONS REMAIN UNCHANGED. I 4 AUTHORIZED REPRESENTATIVE END 015 (1/05) Page 1 of 1 POLICYHOLDER NOTICE 11 Thank you for purchasing insurance from a member company of American International Group, Inc. (AIG). The AIG member companies generally pay compensation to brokers and independent agents, and may have paid compensation in connection with your policy. You can review and obtain information about the nature and range of compensation paid by AIG member companies to brokers and independent agents in the United States by visiting our website at www.aigproducercompensation.com or by calling AIG at 1-800-706-3102. 91222 (7/06) ::WH ILlllt5 1N5UKHNLt ' I-B.X:4t51(((242 . Iiec 1L LUUL lu:LS I,.Y- rl EVIDENCE OF PROPERTY INSURANCE • ISSUE OATS(MhVDD/VY) . 9/16/02 THIS'IS EVIDENCE THAT ''INSURANCE AS IDENTIFIED BELOW HAS BEEN ISSUED, IS IN FORCE, AND _' CONVEYS ALL THE RIGHTS AND PRIVILEGES AFFORDED UNDER THE POLICY. PRODUCER 1 COMPANY CIlYbF RENTON ROBERT F. DRIVER COMPANY, INC. P.O.BOX 6450 ! AS PER SCHEDULE ATTACHED DEC I 2 200�NEWPORT BEACH. CA 92658.6450 Ph (949)756-0271 / Fax(949)756-2713 LICENSE NO.0084379 RECEIVED cops I EUe•cooe CITY CLERK'S OFFICE INSURED LOAN NUMBER i POLICY NUMBER NATIONAL PUBLIC ENTITY EXCESS PROGRAM MEMBER: i VARIOUS PER ATTACHED WASHINGTON CITIES INSURANCE AUTHORITY AND ITS EFFECTIVE DATE(MWOO/YY) I EXPIRATION DATE(MIwDDIVVI CONT.UNTIL ' f"� I '! TERMINATED 1 LJ MEMBER; 09/01/02 09/01/03 '' IF CHECKED CITY OF RENTON THIS REPLACES PRIOR EVIDENCE DATED: CIO P.O.BOX 1165 ' RENTON,WA 98057 , PROPERTY INFORMATION • :`• LDCAAS PER'SCHEDULE OF LOCATIONS WITH THE INSURANCE COMPANY AND ROBERT F. DRIVER ASSOCIATES ' ' COVERAGE INFORMATION • • - .... . COVERAGE/PERILS!FORMS • i AMOUNT OF INSURANCE I DEDUCTIBLE rr i ALL RISKS OF DIRECT PHYSICAL LOSSIOR DAMAGE. PER OCCURRENCE LOSS LIMIT, I $ 250,000,000 !.5250,000each& SUBJECT TO SUB LIMITS AND AGGREGATES. II'every occurrence $ 25,000,000 I s%Per unit of EARTHQUAKE PER OCCURRENCE AND ANNUAL AGGREGATE. . ! Insurance(Real Propeny,Personal Property&The• Element)10%on Pre 1940 6;utdings Subject to I ! St 00.000 Min.net I Member Earthquake Shock occurrence FLOOD PER OCCURRENCE AND ANNUAL AGGREGATE. • $ 250,000,000, 'S2so.000 each a 1 •every occurrence BUILDERS RISK/COURSE OF CONSTRUCTION (INCLUDING NEW FOR PROJECT VALUES). $ 10,000,000 sto,0D0 course cf Corsauction.NI Perils amp! • ,Earthquake A 1 _ Flood, REMARKS lfocluding.SpeclalConditions). ..' -.. , :' 7.: _. . EXCEPT DAYS FOR NON-PAYMENT OF PREMIUM. PLEASE REFER TO THE POLICY FOR SPECIFIC TERMS,CONDITIONS AND EXCLUSIONS. Note additional deductibles: , • Flood: except 3250,000 per occurrence in flood Zone A or within 100 year flood area special flood endorsement for the Lexington Policy only per the attached • Vehicles,Property Damage/Collision Damage--550.000. • Fine Arts—S50,000 per occurrence-Earthquake or Flood. • Specially Trainee Animals—St,000 per occurrence. $500,000 per occurrence for tunnels,bridges.dams.catwalks(except those not for public use),roadway highways,streets,sidewalks,culverts,streetlights and traffic signals unless auspecific value has been declared CANCELLATION .- • • THE POLICY IS SUBJECT TO THE PREMIUMS, FORMS,AND RULES IN EFFECT FOR EACH POLICY PERIOD.'SHOULD THE POLICY BE TERMINATED,THE COMPANY WILL GIVE THE ADDITIONAL INTEREST IDENTIFIED BELOW '30 DAYS WRITTEN NOTICE, AND WILL SEND NOTIFICATION OF ANY CHANGES TO THE POLICY THAT WOULD AFFECT THAT INTEREST, IN ACCORDANCE WITH THE POLICY PROVISIONS OR AS REQUIRED BY LAW. ADDITIONAL INTEREST "NATURE Of INTEREST NAME AND ADDRESS .- 1 MORTGAGEE ADDITIONAL INSURED FOR EVIDENCE ONLY 43e EFU PAYEE I x. EVIDENCE ONLY •• SIGNATURE OF AUTHORIZED AGENT OF ' COMPANY u1 qt �4.4Lloyd' s Proportional I op I 0 Reinsurance Certificate Effected through JLT Risk Solutions Limited 6 Crutched Friars London EC3N 2PH This is to Certify that in accordance with the authorisation granted under the Contract(the number of which is specified in the Schedule)to the,undersigned by certain Underwriters at Lloyd's, whose definitive numbers and the proportion underwritten by them are as attached hereto and can also be ascertained by reference to the said Contract which bears the Seal of Lloyd's Policy Signing Office, and in consideration of the payment of the premium specified herein, the said Underwriters are hereby bound, severally and not jointly, their Executors and Administrators, to insure in accordance with the terms and conditions contained herein or endorsed hereon. The Reinsured,unless otherwise stated herein: (i) shall retain during the period of this Certificate at least the retention(s), subject to any proportional and/or excess of loss treaty reinsurance, on the identical subject matter and perils and in identically the same proportion(s) as stated herein. In the event of the retention(s) and/or proportion(s) being less, the Underwriters' liability will be correspondingly proportionately reduced. (ii) warrants that the premium paid to the Underwriters for this Certificate is calculated at the same gross rate as the original policy for the identical subject matter and perils and in the proportions reinsured. In the event of inconsistencies between the original policy and this Certificate,this Certificate shall prevail. If the Reinsured shall make any claim knowing the same to be false or fraudulent, as regards amount or otherwise, this Certificate shall become void and all claims hereunder shall be forfeited. In Witness whereof this Certificate has been signed at the place stated and on the date specified in the Schedule by JLT Risk Solutions Limited LTL/J2 amended S hedule C,rtificate No: 901/LU0130474 Contract Number: 6165/01 T e Reinsured: WASHINGTON CITIES INSURANCE AUTHORITY(WCIA) Tile Original Insured: MEMBERS OF WASHINGTON CITIES INSURANCE AUTHORITY(Named Insured-Member as per the coverage Schedule agreed by Underwriters and contained in the attached original wording) The Premium: USD 121,676.35 part of USD 170,055.42 part of USD 293,199.00 T e Retention(s): NIL T e Sum Reinsured hereunder: 58.00%of the Limits of Liability as more fully set forth in the attached original wording � I T le Period of Reinsurance: F i m 01 September 2001 to 01 September 2002 both days at 12.01 am Local Standard Time and for such further period or periods .1 may be mutually agreed upon. T le Subject Matter and Perils Reinsured hereunder: TI is Certificate reinsures the Reinsured's interest in payments excluding without prejudice and ex-gratia payments made within t e terms and conditions of the attached original wording for 58.00%on the identical subject matter and risk. I I the event of inconsistencies between the attached original wording and the original wording issued to the Original Insured the a1 ached original wording shall prevail o dorsements,if any: ` rvice of Suit Clause naming:Messrs.Mendes and Mount as attached lilaims Control Clause as attached ines Clause as attached ',einsurance Clause as attached "imultaneous Settlement Clause as attached or and on behalf of JLT Risk Solutions Limited •uthorised Signatory dv"------------2,......„ 9 ated in London,the \4\,.. A\-1 2cay2 I I TL/J2 (Schedule)for attachment to LTL/J2 amended Attaching to and forming part of Certificate No. 901/LU0130474 Service of Suit Clause(U.S.A.) It is agreed that in the event of the failure of the Reinsuring Underwriters hereon to pay any amount claimed to be due hereunder,the Reinsuring Underwriters hereon, at the request of the Reinsured, will submit to the jurisdiction of a Court of competent jurisdiction within the United States. Nothing in this Clause constitutes or should be understood to constitute a waiver of Reinsuring Underwriters' rights to commence an action in any Court of competent jurisdiction in the United States,to remove an action to a United States District Court,or to seek a transfer of a case to another Court as permitted by the laws of the United States or of any State in the United States. It is further agreed that service of process in such suit may be made upon:- Messrs. Mendes and Mount(Attorneys),750 Seventh Avenue,New York, New York 10019-6829,USA and that in any suit instituted against any one of them upon this contract, Reinsuring Underwriters will abide by the final decision of such Court or of any Appellate Court in the event of an appeal. The above-named are authorized and directed to accept service of process on behalf of Reinsuring Underwriters in any such suit and/or upon the request of the Reinsured to give a written undertaking to the Reinsured that they will enter a general appearance upon Reinsuring Underwriters'behalf in the event such a suit shall be instituted. Further, pursuant to any statute of any state,territory or district of the United States which makes provision therefor, Reinsuring Underwriters hereon hereby designate the Superintendent, Commissioner or Director of Insurance or other officer specified for that purpose in the statute, or his successor or successors in office,as their true and lawful attorney upon whom may be served any lawful process in any action,suit of proceeding instituted by or on behalf of 'the Reinsured or any beneficiary hereunder arising out of this contract of reinsurance,and hereby designate the above-named as the person to whom the said officer is authorized to mail such process or a true copy thereof. Claims Control Clause Notwithstanding anything contained herein to the contrary, it is a condition precedent to any liability under this 'Certificate that:- la) The Reinsured shall, upon knowledge of any loss or losses which may give rise to a claim under this Certificate,advise the Reinsuring Underwriters thereof as soon as possible. Lb) The Reinsured shall furnish the Reinsuring Underwriters with all information available respecting such loss or losses, and the Reinsuring Underwriters shall have the right to appoint adjusters, assessors and/or surveyors and to control all negotiations,adjustments and settlements in connection with such loss or losses. 'Lines Clause This Reinsurance. being signed for 71.551% of 100% of 58.00% reinsures only that proportion of any loss, whether total or partial, including but not limited to that proportion of associated expenses, if any, to the extent and in the manner provided in this Reinsurance. The percentages signed in the Schedule attached hereto are percentages of 100% of 58.00% of the amount(s) of Reinsurance stated herein. • Reinsurance Clause This Reinsurance is subject to all terms, clauses and conditions as original except as provided for herein, and to follow in all respects the settlements or other payments of whatsoever nature made by the original Underwriters arising out of and in connection with the original insurance and to bear its proportion of any expenses incurred whether legal or otherwise in the investigation and defence of any claim hereunder. Simultaneous Settlement Clause 'In the event of a claim under the original policy Reinsuring Underwriters agree that, any payment hereon shall take place at the same time as settlement or advance of funds under the said original policy. SEVERAL LIABILITY NOTICE The subscribing reinsurers'obligations under contracts of reinsurance to which they subscribe are several and not joir.t and are limited solely to the extent of their individual subscriptions. The subscribing reinsurers are not responsible for the subscription of any co-subscribing reinsurer who for any reason does not satisfy all or part of its obl Lgations. 08/�4 LS 1001 (Reinsurance) Attaching to and forming part of Certificate No.901/LU0130474 Schedule of Reinsuring Underwriters f Percentage Underwriters Syndicate Number Underwriters Reference 21.551% 2020 N327492FOT 5.540% 861 60A82041K03Z 9.848% 1209 60A82041K03Z 1.439% 588 60E47894F03Z 1.276% 1209 60E47894F03Z 9.483% 2791 A2001TG00419 1.724% 2791 A2001HA00420 12.069% 2488 AVCA41 YA8474 8.621% 190 377OPO1O25XX 71.551% of 100%of 58.00% EXCESS DECLARATION PAGE 1) REINSURED: WASHINGTON CITIES INSURANCE AUTHORITY(WCIA) INSURED: MEMBERS OF WASHINGTON CITIES INSURANCE AUTHORITY As more fully described in "NAME OF INSURED" (Section I, Item 1) and Named Insured Endorsement (if applicable) 2) MAILING ADDRESS: P.O. BOX 1165, Renton, WA 98057 3) POLICY PERIOD: September 1, 2001 12:01AM TO September 1, 2002 12:01AM 4) LIMIT AND SUB-LIMITS OF LIABILITY: THE LIMITS OF LIABILITY AND SUB-LIMITS OF LIABILITY SHOWN BELOW INCLUDE THE $5,000,000 PRIMARY. $ 500,000,000 Per Occurrence and in the annual aggregate in respect of Flood and Earthquake Shock separately. Sub-limits: A. $250,000,000 Flood—Per Occurrence &Annual Aggregate—all coverages B. $ 50,000,000 Earthquake Shock- Per Occurrence&Annual Aggregate—all coverages C. $ 100,000,000 Combined Business Interruption, Extra Expense, Rental Income and Tax Interruption all members D. $ 25,000,000 Miscellaneous Unnamed Locations and automatic acquisition as respects existing and new members as per endorsement No. 18 (including earthquake) E. $ 25,000,000 Landscaping, tees, sand traps, greens and athletic fields F. $ 25,000,000 Errors& Omissions G. $ 25,000,000 Course Of Construction (including new for project values up to$25,000,000) H. $ 1,000,000 Money & Securities I. $ 10,000,000 Unscheduled Fine Arts J. $ 500,000 Accidental Contamination K. $ 1,000,000 Tunnels, bridges, dams, catwalks (except those not for public use), roadways, highways, streets, sidewalks, culverts, street lights and traffic signals unless a specific value has been declared L. $ 100,000,000 Demolition and Increased Cost of Construction due to the enforcement of building codes $ 10,000,000 Transit $ 1,000,000 Animals; except$100,000 Specially Trained Animals $ 1,000,000 Watercraft 27 feet or less unless scheduled in the statement of values $ 50,000 Newly Acquired Vehicles (current members with auto coverage only) $ Not Covered Replacement power extra expense at scheduled utility locations $ 5,000,000 Off premises services interruption including extra expense resulting from s covered peril at non-owned/operated locations $ Not covered Contingent business interruption resulting from a covered peril at non owned/operated power generating facilities $ Not Applicable Per occurrence and in the annual aggregate: Earthquake shock on licensed vehicles, unlicensed vehicles, contractors equipment and fine arts combined for all insureds/members combined that do not purchase optional coverage Item-A); Earthquake Shock As more fully described in "LIMITS OF LIABILITY" (Section I—Item 4) 4) A. EXGt55 LIAI3ILI I Y NKUVISIUNS: This policy shall respond in excess of$5,000,000 per occurrence. The Primary Occurrence Limit applies in the aggregate as respects the peril of Earthquake Shock and in the aggregate as respect the peril of Flood. The Primary$5,000,00,0 shall apply excess of the deductibles shown in item 5) deductible(s) shown below 5.) DEDUCTIBLE(S): (APPLICABLE TO THE UNDERLYING PRIMARY) A. "BASIC" ALL PERILS AND COVERAGES (EXCEPT SPECIFIED PERILS OR COVERAGE DEDUCTIBLE SHOWN BELOW): Deductible: $ 50,000 Per Occurrence (OR MORE AS SCHEDULED) each and every loss before and after exhaustion of the annual aggregate pool deductible (except flood, earthquake and 'i service interruption) Aggregate Pool Deductible: $ Not Applicable maximum per occurrence/ $ Not Applicable annual aggregate; however, losses involving any of the following are subject only to the basic$ Not Applicable (OR MORE AS SCHEDULED) deductible and do not erode to the aggregate pool deductible • Vehicles • Contractors Equipment • Water Craft • Scheduled Fine Arts •Animals • Tees and Greens B. SPECIFIED PERILS AND COVERAGE DEDUCTIBLES $ 100,000 Per Occurrence— Flood 1. Vehicles or Contractors Equipment—$25,000 Per Vehicle/Item subject to $100,000 maximum as respects the peril of Flood 5% Per Unit of Insurance/minimum $100,000 per member/related sub-entities, divisions and districts/Per Occurrence (subject to a maximum/minimum deductible all members/Per Occurrence to be agreed by Underwriters) — Earthquake Shock, except ,1. Vehicles or Contractors Equipment—$25,000 Per Vehicle/Item subject to $100,000 maximum as respects the peril of Earthquake 2. Fine Arts—$50,000 Per Occurrence $ 50,000 Per Occurrence—Vehicle Property Damage $ 50,000 'Per Occurrence—Vehicle Collision Damage 1 000 IPer Occurrence—Specially $ Trained Animals $ 500,000 'Per Occurrence—Tunnels, bridges, dams, catwalks (except those not for public use), roadways, highways, streets, sidewalks, culverts, street lights and traffic signals unless a specific value has been declared 24 Hour Waiting Period—All Perils: Service Interruption tion $10,000—Course of Construction—All Perils except Earthquake & Flood As more fully described in "DEDUCTIBLE PROVISIONS" (Section I —Item 5) I � 6) OPTIONAL COVERAGE PARTICIPATION It is understood and agreed that the certain Member Agencies participate in Optional Coverage on this Policy as set forth below: Member Agency "Basic" Applicable Coverage Optional List members and applicable deductible and Deductible Coverages* optional coverages A, B, C, D, E, F All Members $ 100,000 A,B,C,D,F All Members $ 250,000 A,B,C,D,F All Members $ 500,000 A,B,C,D,F All Members $ 1,000,000 A,B,C,D,F *Optional Coverages Identification A) Earthquake Shock B) Licensed Vehicles C) Contractors Equipment/Unlicensed Vehicles D) Scheduled Fine Arts E) Flood (Program) F) Flood (Individual) Coverage: As per PEPIP USA Manuscript form Description:As per PEPIP USA Manuscript form ENDORSEMENT NO. 16A ELECTRONIC DATE RECOGNITION EXCLUSION It is hereby understood and agreed that all members and named insureds have coverage as described and defined in Endorsement No. 16— Electronic Date Recognition Exclusion-Wording 'A 1 ,,It is further understood;and agreed that as respects members and named insureds listed below, Electronic Date Recognition Exclusion — Wording A is hereby deleted and replaced with Endorsement no. 16- Electronic Date Recognition Exclusion —Wording B (All Risks Write Back). This change applies to the following members: All members of Washington Cities Insurance Authority (WCIA) I I I 1 I i I i 1 i I I I i 1 1 ENDORSEMENT NO 17 NAMED INSURED ENDORSEMENT I WASHINGTON CITIES INSURANCE AUTHORITY (WCIA) PEPIP USA PROPERTY PROGRAM 1 LIST OF NAMED INSUREDS EF ECTIVE SEPTEMBER 1 , 2001 TO SEPTEMBER 1 , 2002 1 :A R ;gional Coalition for Housing I 42 'City of Maple Valley -_ 2 !City of Aberdeen ; 43 City of Marysville 3 !Ci ;of Arlington ; 44 :Marysville Fire District • 4 !Ci of Auburn ! 45 !City of McCleary 5 ICi ;of Bainbridge Island 46 :City of Medical Lake 6 ;City Of Battle Ground 47 :City of Medina 7 !Ben on County Emergency Services 48 City of Mercer Island 8 :Citylof Bothell 49 City of Mill Creek 9_ Cit)Iof Burien : 50 City of Milton 10 ,Ci l of Camas ; 51 !City of Monroe 11 ;Cit I of Centralia ; 52 Monroe Fire District 12 'Ci jof Chehalis ; 53 City of Montesano 13 'Ci ;of Chelan `; 54 City of Mount Vernon 14 ;Ci i of Clarkston : 55 'City of Mountlake Terrace ,_ --------- 15 .C4 of Clyde Hill ; 56 .City of Mukilteo j 16 !To 'n of Coupeville , 57 City of Newcastle 17 .Cit.:of Covington ' 58 City of Normandy Park 18 Co' litz Sewer Operating Board 59 'City of North Bonneville 19 Ci ' of Des Moines , 60 City of Ocean Shores 20 Eai tside Public Safety Commission 61 City of Pacific 21 Ci f:' of Edgewood I 62 City of Olympia**Auto Only 22 Ci " of Edmonds , 63 Penninsula Communications 23 Ci ' of Elma , 64 City of Port Angeles _ 24 E tergency Services Coord.Agency ; 65 City of Port Townsend ; 25 i Ci I, of Enumclaw • ; 66 :City of Puyallup 26 :Ci;; of Grandview 67 :City of Renton 27 ;Cili of Goldendale • 68 ;City of Richland 28 G ii,ys Harbor Communications 69 ;City of Sammamish 29 :Ci,' of Hoquiam ; 70 'Snohomish County Emergency Radio System (SERS) 30 IC( of Issaquah j 71 :City of Shelton 31 ;Ci: of Kelso I 72 ICity of Shoreline 32 !Ci'y of Kenmore - ; 73 ;Skagit 33 ICi• of Kirkland ; 74 ;SNOCOM 34 ITiwn of La Conner 75 ;City of Snohomish 1 35 ;CI; of Lacey I 76 iSNOPAC 36 IC 1,y of Lake Forest Park 77 ;City of Snoqualmie 37 IC;ty of Lake Stevens I 78 iCity of Stanwood 38 ;C ty of Leavenworth I 79 ITown of Steilacoom 39 IC,ly of Long Beach I 80 ;City of Sumner I - 40 ;C,ty of Longview ; 81 ;Thurston Regional Planning Council 41 ,C ty of Mabton I 82 !City of Toppenish I ENDORSEMENT NO 17 NAMED INSURED ENDORSEMENT WASHINGTON CITIES INSURANCE AUTHORITY (WCIA) PEPIP USA PROPERTY PROGRAM LIST OF NAMED INSUREDS EFFECTIVE SEPTEMBER 1 , 2001 TO SEPTEMBER 1 , 2002 83 !City of Tukwila • 84 !City of Tumwater 85 ICity of Union Gap • 86 !City,of University Place 87 !Valley Communications Center 88 !City of Walla Walla 89 !Washington Cities Insurance Authority(WCIA) 90 ?City of Washougal • 91 !Water Operating Board (WOB) _ 92 !,City of Westport 93 ;City of Woodinville 94 ;Town of Woodway • 95 :Yakima Valley Conference of Govts. 96 .City of Zillah PEPIP USA CONTENTS Page No. I Contents Pages 1-7 SECTION I I li Declarations 1) Name of Insured 8 2) Address of Insured 8 3) Policy Period 9 4) Limits of Liability 9 4a) Optional Coverage Participation 10 5) Deductible Provisions 10 6) Unit of Insurance Defined 10 SECTION II PHYSICAL DAMAGE TO PROPERTY 1) Coverage 11 2) Extensions of Coverage 11 A) Personal Effects L 11 B) Property in Course of Construction 11 C) Fire Fighting Expenses 12 D) Off Premises Services Clause 13 E) Architects and Engineers Fees and Loss Adjustment Expenses 13 F) Expediting Expenses 13 � G)_ Debris Removal 13 H) Building Laws L 14 I) Demolition Cost 14 J) Increased Cost of Construction 14 K) Automatic Coverage 14 L) Errors and Omissions 14 M) Animals 15 N) Valuable Papers 15 0) Transit 15 P) Vehicles While On Insured Premises 15 ParaP 1 • 3) Exclusions 15 A) Property Exclusions I 15 B) Asbestos Clean-up and Removal 18 4) Loss;Payment BasisNaluation 18 5) Special Conditions 21 A) Automatic Coverage/Reporting Conditions 21 6) Defin1itions 22 A) Loss 22 1) Windstorm 22 2)'' Flood 23 3)i Earthquake Shock 24 4)1 Personal Effects 25 5), Improvements and Betterments 25 SECTION III INTERRUPTION OF BUSINESS/EXTRA EXPENSE AND RENTAL INCOME 1) Coverage 26 A) Business Interruption 26 B) Extra Expense 26 2) Extensions of Coverage 27 A) Ingress/Egress 27 B) Interruption by Civil Authority 27 C) Demolition and increased time to rebuild 27 D) Non-Productive Property 28 E) Contingent business interruption and/or extra expense and/or rental value 28 F) Extended period of indemnity extension 28 3) Exclusions 129 A) Special Exclusions 29 4) Loss Payment Valuation 29 A) Expenses to Reduce Loss 29 5) Conditions Applicable to Business Interruption/ Extra Expense and Rental Value 30 I Paae 2 6) Definitions 30 A) Gross Earnings 30 B) Merchandise 31 C) Extra Expense 31 D) Rental Value 31 E) Period of Restoration 32 Paae 3 SECTION IV GENERAL CONDITIONS 1) Perils Covered 33 2) Perils Excluded 33 3) Territorial Limits 35 4) Reinstatement 35 5) F.O.B. Shipments 35 6) Protection and Preservation of Property 35 7) Breach of Conditions 36 8) Permits and Privileges 36 9) Protective Safeguard ; 37 10) Notice of Loss 37 11) Protection of Property 38 12) Arbitration of Value 38 13) Proof of Loss 39 14) Subrogation 39 15) Cancellation 40 16) Abandonment 41 17) Assignment 41 18) Salivage 41 19) Other Insurance 41 20) Excess Insurance 42 21) Right to Review Records 42 22) Concealment and Fraud 42 23) Liberalization 43 24) Loss Payable Clause 43 25) Full Waiver 43 26) Report of Values/Premium 43 , I Panic, i SECTION V DATA PROCESSING MEDIA 1) Coverage 44 A) Property Covered 44 B) Perils Covered 44 2) Extensions of Coverage 1 44 3) Exclusions 44 A) Property Excluded 44 B) Perils Excluded 45 4) Loss Payment BasisNaluation 45 5) Special Conditions 46 6) Definitions 46 A) Active Data Processing Media 46 SECTION VI FINE ARTS FLOATER 1) Coverage 47 A) Property Covered 47 B) This Floater Insures Against 48 C) Wall to Wall (Nail to Nail) Coverage 48 2) Extensions of Coverage 48 3) Exclusions 48 4) Loss Payment BasisNaluation 50 5) Special Conditions 50 1) Misrepresentation and Fraud 50 2) Notice of Loss 1 50 3) Examination Under Oath 51 4) Settlement of Loss 51 5) No Benefit to Bailee 51 6) Subrogation of Loan 51 7) Loss Clause 52 8) Protection of Property 52 9) Suits 52 10) Appraisal 52 11) Civil Authority J 53 12) Conformity to Statute 1 53 53 13) Changes 14) Additional Covered Party(ies) 53 15) Packing 1 53 16) Other Insurance 53 17) Pair and Set 53 6) Definitions 53 Paae 5 SECTION VII EXTRA EXPENSE ELECTRONIC DATA PROCESSING 1) Coverage 54 Measure of Recovery 55 2) Extensions of Coverage 55 3) Exclusions 55 4) Loss Payment Basis/Valuation Deductible 56 5) Special Conditions 56 Resumption of Operations '56 6) Definitions 57 A) Extra Expense 57 B) Normal 57 SECTION VIII MOBILE / CONTRACTORS EQUIPMENT 1) Coverage 58 2) Extensions of Coverage 59 3) Exclusions 60 4) Loss Payment BasisNaluation 60 5) Special Conditions 60 6) Definitions 60 SECTION IX ACCOUNTS RECEIVABLE 1. Coverage 61 2. Extensions of Coverage 61 3. Exclusions 61 4. Loss,Payment BasisNaluation -62 Determination of Receivables; Deductions 62 5. Special Conditions 62 6. Definitions 63 Accounts Receivable 63 Parma R SCHEDULE OF ENDORSEMENTS ENDORSEMENT No. 1 Boiler and Machinery and Property Joint Loss • Adjustment 64 ENDORSEMENT No. 2 Property Joint Loss Adjustment 65 ENDORSEMENT No. 3 Seepage and/or Pollution and/or Contamination Exclusion, Debris Removal and Cost of Clean-Up Extension, Authorities Exclusion 66 ENDORSEMENT No. 4 Minimum Earned Assessments 68 ENDORSEMENT No. 5 Lender's Loss Payable Endorsement 69 ENDORSEMENT No. 6 Severability Notice 71 ENDORSEMENT No. 7 Accidental Contamination Extension 72 ENDORSEMENT No. 8 Automatic Additional Insureds and/or Loss Payees 73 ENDORSEMENT No. 9 Earthquake and Flood Exclusion 74 ENDORSEMENT No. 10 County of Los Angeles All Risk Loss Limit 75 ENDORSEMENT No. 11 Coverage Limited to Specific Locations 76 ENDORSEMENT No. 12 Priority of Payments 77 ENDORSEMENT No. 13 Leasehold Interest 78 ENDORSEMENT No. 14 Revenue Interruption Protection (excluding Earthquake and Flood) 79 ENDORSEMENT No. 15 Loss Payment BasisNaluation (applicable to NPX Members only) 80 ENDORSEMENT No. 16 Electronic Date Recognition Exclusion "Wording A" 81 Electronic Date Recognition Exclusion "Wording B" 82 ENDORSEMENT No. 16A Electronic Date Recognition Exclusions 83 ENDORSEMENT No. 17 Named Insured and Members (and Deductibles as shown) 84 ENDORSEMENT No. 18 Automatic Acquisition Clause 85 ENDORSEMENT No. 19 Loss Payable Provisions (FormCP12181091) 87 ENDORSEMENT No. 20 Transit 90 ENDORSEMENT No. 21 Electronic Data Endorsement A 91 Pace 7 SECTION In consideration of the premium paid by the Insured to this Insurer, the Insurer agrees to insure the following per the terms and conditions herein: 1) NAME OF INSURED: AS PER DECLARATIONS PAGE and its members or (member agencies) as per the Named Insured Endorsement and any entities or individuals for whom the Named Insured is required to provide coverage as their interests may appear and other organizations and enterprises which now exist or which hereafter may be created or acquired and which are owned, financially controlled or actively managed by the herein named interest, all jointly, severally or in any combination of their interests, for account of whom it may concern. Lessors and other party(ies) of interest in all property of every description covered hereunder are included herein as additional Insureds for their respective rights and interests, it being understood that the inclusion hereunder of more than one covered party shall not serve to increase the.Insurer's limit of liability. Mortgagees to whom certificates of coverage have been issued are covered hereunder in accordance with the terms and conditions of Form 438 BFU NS, CP12 18 1091, or equivalent as required by the mortgagee. Loss, if any, shall be adjusted with the Insured and payable to the named insureds as their respective interests may appear, subject however, to the provisions of any mortgagees or payee clauses which may otherwise be herein provided or endorsed hereon. 2) MAILING ADDRESS OF INSURED: AS PER DECLARATION PAGE Pace 8 3) POLICY PERIOD: 12 MONTHS AS PER DECLARATION EFFECTIVE DATE AND EXPIRATION DATE 4) LIMITS OF LIABILITY: The limit of liability as stated below is per occurrence and in the annual ggregate as respects the peril of earthquake shock and also in the annual aggregate as respects the peril of flood. The provisions of the reinstatement clause as stated elsewhere herein, are null and void as respects the perils of earthquake shock and flood. Subject to specific exclusions, modifications, and conditions hereinafter provided, the liability of this Insurer in any one occurrence regardless of whether one or more of the coverages of this Policy are involved shall not exceed: 1. AS PER DECLARATION Per occurrence all risk perils except earthquake shock and flood THE FOLLOWING ARE OPTIONAL COVERAGES. COVERAGE IS ITROVIDED IF A SUB-LIMIT IS SHOWN ON THE DECLARATIONS PAGE. SUB-LIMITS DO NOT INCREASE THE OCCURRENCE LIMIT OF LIABILITY. A. Per occurrence and in the annual aggregate as respects flood. B. Per occurrence and in the annual aggregate as respects earthquake shock C. Combined Business Interruption, Extra Expense, Rental Income, Taxi Interruption D. Miscellaneous unnamed locations and automatic coverage as per Endorsement #18 E. Landscaping, tees, sand traps, greens and athletic fields F. Errors & Omissions G. Course of Construction H. Money and Securities for Fire, Wind, Hail, Explosion, Smoke, Lightning, Riot, Civil Commotion, Impact by Aircraft or Objects falling therefrom, Impact by Vehicles, Water Damage and Theft (other than by an employee of the Insured) I. Unscheduled fine arts J. Accidental Contamination including owned land, land values and viater owned by the Insured K. Tunnels, bridges, dams, catwalks except those not for public use, roadways, highways, streets, sidewalks, culverts, street lights and traffic signals L. Other— as shown in declarations page Page 9 4A) OPTIONAL COVERAGE PARTICIPATION It is understood and agreed that certain Insureds participate in Optional Coverage on this Policy as set forth below. OPTIONAL COVERAGES IDENTIFICATION: A) Earthquake Shock B) Licensed Vehicles C) Contractors Equipment/Unlicensed Vehicles D) Scheduled Fine Arts E) Flood — Shared Program Limits F) Flood — Specified Flood Per Insured 5) DEDUCTIBLE PROVISIONS: If two or more deductible amounts provided above apply for a single 'occurrence', the total to be deducted shall not exceed the largest per 'occurrence' deductible amount applicable. Deductibles are shown on the Declarations page. ' 6) UNIT OF INSURANCE DEFINED: In the application of the Earthquake Shock Deductible Clause, and the Apportionment of Loss Clause made a part of this Policy, each of the following shall be considered a Separate Unit of Insurance: (a) Each Separate Building or Structure; (b) The Contents of each Building or Structure; (c) Applicable Time Element Coverage of each separate Building or Structure; and (d) Property in each Yard. This Insurer shall not be liable for loss to any Unit of Insurance covered hereunder unless such-loss exceeds the percentages stated in this Policy of the replacement values of such Unit of Insurance at the time when such loss shall happen, and then only for its proportion of such excess. The Terms and Conditions stated in #5 (Deductible provisions) and #6 (Unit of insurance defined) supersede the provisions of any Deductible Clause contained elsewhere in this Policy. ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED o,,.... n SECTION II PHYSICAL DAMAGE TO PROPERTY 1) COVERAGE: Subject to the terms, conditions and exclusions hereinafter containe , this t Y Polic insures all property of every description of an insurable nature, both real and personal (including improvements and betterments), of the Insured or property of others in the care, custody or control of the Insured, for which the Insured is liable or under obligation to keep insured. It is also understood and agreed that the interest of additional covered parties and/or loss payees are automatically included. 2) EXTENSIONS OF COVERAGE: A) PERSONAL EFFECTS This Policy is extended to cover only such personal effects and wearing apparel of any of the officials, employees, students and personal effects of the Insured named in this Policy for which the Insured may elect to assume liability while located in accordance with the coverage hereof, but loss, if any, oh such property shall be adjusted with and payable to the Insured. B) PROPERTY IN COURSE OF CONSTRUCTION It is understood and agreed that as respects course of constructs n and remodeling projects, this Policy will provide automatic coverage subject to the following conditions: • (1) Project involves only real property on new or existing locations (excluding dams, piers, roads, and bridges) (2) Value of the project at the location does not exceed $25,C00,000, however the Insured shall report to the companies if values of Project exceed $25,000,000. However, inadvertent failure to report shall not void coverage of said Project. (3) Additional Expense Soft Cost: This coverage applies to new buildings or structures in the course of construction up to he time that the new building (s) or structure (s) is initially occupied or put to its intended use whichever occurs first. Page 11 The Insurer will cover the additional expenses of the Insured as defined below for up to 25% of the estimated completed value of the project which results fromthe completion of the project beyond the date it would have adelaymc p y been completed had no loss or damage occurred. The delay must be due to direct physical loss or damage to Property Insured and be caused by Or result from a peril not excluded by this Policy. The Insurer will pay covered expenses when they are incurred. a. Additional Interest Coverage — The Insurer will pay the additional interest on money you borrow to finance construction or repair. b. Rent or Rental Value Coverage — The Insurer will pay the actual loss of net rental income that results from delay beyond the projected completion date. But the Insurer will not pay more than the reduction in rental income less charges and expenses that do not necessarily continue. c. Additional Real Estate Taxes or Other Assessments — The, Insurer will pay the additional real estate taxes or other assessments you incur for the period of time that construction is extended beyond the completion date. d. Additional Advertising and Promotional Expenses — The Insurer will pay the additional advertising and promotional expense that becomes necessary as a result of a delay in the completion of the project. e. Additional Commissions Expense — The Insurer will pay the additional expenses which result from the renegotiating of leases following an interruption in the project. f. Additional Architectural and Engineering Fees — The Insurer will pay the additional architectural and engineering fees that become necessary as a result of a delay in the completion of the project. g. Additional License and Permit Fees — The Insurer will pay the additional license and permit fees that become necessary as a delay in the completion of the project. h. Legal and Accounting Fees — The Insurer will pay the additional legal and accounting fees you incur as a result of a delay in the completion I of the project.) C) FIRE FIGHTING EXPENSES It is understood and agreed that the Insurer shall be liable for the actual charges of fire fighting expenses including but not limited to those charged by municipal or private fire departments responding to and fighting fire 'in/on, and/or protecting property included in coverage provided by this Policy. l Panes 19 D) OFF PREMISES SERVICES CLAUSE It is understood and agreed that coverage under this Policy is extended to include physical damage, business interruption loss and/or extra expense incurred and/or sustained by the Insured as a result of damage to or destruction of, by the perils insured against, to property of the type not excluded by this Policy of any suppliers furnishing heat, light, power, gas, water, telephone or similar services to an Insured's premises. E) ARCHITECTS AND ENGINEERS FEES AND LOSS ADJUSTMENT EXPENSES This Policy also insures any of the following: (1) Architects and engineers fees (2) Loss adjustment expenses including, but not limited to, auditors, consultants and accountants F) EXPEDITING EXPENSES It is understood and agreed that coverage under this Policy includes the reasonable extra cost of temporary repair and of expediting the repair of such damaged property of the Insured, including overtime and the extra costs of express or other rapid means of transportation. 1 G) DEBRIS REMOVAL This Policy also covers expenses incurred in the removal of debris of the property covered hereunder that may be destroyed or damaged by a covered peril(s). This debris removal coverage does not apply to the cost toi extract pollutants from land or water, or to remove, restore or replace polluted land or water, except as provided by Endorsement No 07. Page 13 H) BUILDING LAWS In the event of physical damage to property insured by a covered peril this ' Policy is extended to cover the loss occasioned by the enforcement of any local or state ordinance or law regulating the construction, repair or demolition of buildings or structures, which is in force at the time such a loss occurs, which necessitates the demolition of any portion of the covered building not damaged by the covered Iperil(s). I) DEMOLITION COST In the event of physical damage to property insured by a covered peril this policy is extended to cover the cost of demolishing any undamaged portion of the covered including the cost of clearing the site thereof, caused by property loss from any covered peril(s) under this Policy and resulting from enforcement of any local or state ordinance or law regulating the construction, repair or demolition of buildings or structures and in force at the time of loss which necessitates such demolition; J) INCREASED COST OF CONSTRUCTION In the event of physical damage to property insured by a covered peril this Policy is extended to cover the increased cost of repair or replacement occasioned by the enforcement of any local state ordinance or law regulating the construction, repair or demolition of buildings or structures, which is;in force at the time such a loss occurs or which comes into force within 12 months after such a loss occurs, which necessitates in repairing or replacing the building covered hereunder which has suffered damage or destruction by the covered peril(s) or which has undergone demolition, limited, however, to the minimum requirements of such ordinance or law. K) AUTOMATIC COVERAGE This Policy provides automatic coverage without additional premium, for additions and increases in values as respects existing Insureds subject to such increase in_ values not exceeding $ per declaration page and as per p 9 Endorsement#18 per Insured. L) ERRORS;& OMISSIONS No unintentional errors or omissions in description, location of property or valuation of property will prejudice the Insured's right of recovery but will be reported to the ;Insurer(s) as soon as practicable when discovered. I I Page 14 M) ANIMALS Including police dogs, horses and other specially trained animals. Coverage includes retraining expenses. N) VALUABLE PAPERS Valuable papers or the cost to reconstruct valuable papers lost or damaged by perils insured against during the term of this Policy. 0) TRANSIT Personal property of the Insured or property held by the Insured in trust or on commission or on consignment for which the Insured may be held legally liable while in due course of transit, worldwide, against All Risks of Direct Physical Loss or Damage to the property insured occurring during the period of this Policy. P) VEHICLES WHILE ON INSURED PREMISES Vehicles while on premises against lost or damaged by a peril insured against during the term of this Policy. 3 PROPERTY NOT COVERED: A) PROPERTY EXCLUSIONS This Property Policy does not provide coverage for any of the following: (1) Aircraft, watercraft and rolling stock, except: Watercraft up to 27', unless scheduled and Light rail vehicles, subway trains and related track maintenance vehicles for light rail and subway lines. (2) Standing timber, bodies of water, growing crops, and dams. (3) Land,--(including land on which covered property is located), and land values (except athletic fields, landscaping, sand traps, tees and greens). (4) Property in due course of ocean marine transit. Page 15 (5) Shipment by mail after delivery into the custody of the United States Post Office. (6) Property lin course of construction with construction values greater than $25,000,000. (7) Power transmission, feeder lines and underground pipes more than 2,500 feet from Ithe premises of the Insured. (8) Tunnels, 1 bridges, dams, catwalks (except those not for public, use), roadways, highways, streets, sidewalks, culverts, streetlights, traffic signals, excess of a $1,000,000 sub-limit unless values are specifically declared. (9) As respects course of construction the following exclusions shall apply: (a) The 1 cost of making good, faulty or defective workmanship, material, construction or design, but this exclusion shall not apply to damage resulting from such faulty or defective workmanship, material, construction or design. (b) The cost of non-compliance of, or delay in completion of contract. (c) The'cost of non-compliance with contract conditions. (d) Contractors' equipment or tools not a part or destined to become a part of the installation. I , The following additional exclusions apply to loss or damage to animals 'covered under this Policy: (1) Death of any animal(s) from natural causes. I 4 i (2) Death of any animal(s) which dies from an unknown cause unless:, (a) upon the death of such animal a post-mortem examination made of such animal by a licensed veterinarian, and if (b) the veterinarian's post-mortem report shows the cause of death to clearly fall within the coverages of this Policy. � I Page 16 orolo'snnl%AA CTro (3) Death of any animal(s) as a result of surgical operation, including inoculation, unless the necessity for same arises from an event coffered by this Policy. (4) The death or destruction of any animal(s) caused by resulting from, or made necessary by physical injury caused by or resulting from the activities of the injured animal or other animals unless such death or destruction is the result of any event otherwise covered by this Policy. (5) The death of any animal(s) caused directly or indirectly by the neglect or abuse of the Insured, his agent, employees or bailees (carriers for hire excepted) unless such loss is a result of an event otherwise covered by this Policy. (6) The loss by death of any animal(s) as a result of parturition or abortion. (7) Loss resulting from depreciation in value caused by any animal(s) covered hereunder becoming unfit for or incapable of filling the function or duties for which it is kept, employed or intended unless such loss is the result of an event otherwise covered by this Policy. (8) Loss by destruction of any animal(s) on the order of the federal or any state government, or otherwise as a result of having contracted or been exposed to any contagious or communicable disease. (9) The removal or disposal of the remains of any animal(s) nor the expense thereof unless such loss is the result of an event otherwise covered by this Policy. (10) The loss of any animal(s) that has been unnerved (the term "unnerved" to be considered as meaning the operation of neurotomy for lameness). (11) Any claim consequent upon delay, deterioration, or loss of use or loss of market arising from an event covered by this Policy. Page 17 EPIP2001 MASTER j I B) ASBESTOS CLEAN-UP AND REMOVAL This Policy specifically excludes asbestos clean-up, removal or loss of use of any Insured facility as mandated by any Public Agency, code or ordinance. However, in tlj e event that asbestos materials not previously required to be removed by a Public Agency, code or ordinance sustains physical damage as a result of a covered peril(s) then coverage is afforded for, Debris removal or salvage operations within the immediate area of physical damage (caused by a covered peril) to other covered property; then this Policy will provide coverage for asbestos clean-up or removal within the damaged area and applicable time element coverages. Asbestos clean-up, removal and loss of use of insured facilities under the demolition and increased cost of construction coverage provided by this Policy is hereby excluded: In no event will coverage be extended to cover undamaged asbestos, including undamaged asbestos in any portions of the building mandated by Public Agency, codes,or ordinances to be demolished or brought into compliance with current building codes. 4) LOSS PAYMENT BASISNALUATION ' In case of loss to property of an Insured covered hereunder, the basis of adjustment shall be as of the time and place of loss as follows: (A) On all real and personal property, including property of others at the replacement value at the time of the loss without deduction for depreciation. If property is not replaced within a reasonable period of time, then the actual cash value (B) On improvements and betterments at the replacement value at time of loss without deduction for depreciation. If property is not repaired or replaced within a reasonable period of time, then the actual cash value. If replaced or repaired by others for the use of the Insured, there shall be no liability hereunder. The Insurer agrees to accept and consider the insured as sole and unconditional owner of all improvements and betterments, any contract or lease the Insured may have made to the contrary notwithstanding. Page 18 PEPIP2001 MASTER (C) On manuscripts, mechanical drawings, patterns, electronic data processing media, books of accounting and other valuable papers, the full replacement cost of the property at the time of loss (including expenses incurred to recreate the information lost, damaged or destroyed) or what it would then cost to repair, replace or reconstruct the property with other of like kind and quality. If not repaired, replaced or reconstructed within a reasonable period of time, then not to exceed the cost of blank or unexposed material. (D) On antique, restored or historical buildings, the cost of acquisition, relocation to the site and renovation or reconstruction. In the event of a partial loss, normal replacement cost coverage as set forth in item A above would apply. (E) On property of others for which the Insured is liable under contract or lease agreement the Insurer's liability in the event of loss is limited to the Insured's obligation as defined in said contract or lease agreement. (F) The valuation of library contents is as follows: Category Value** Juvenile Picture Book $ 14.75 Juvenile Book $ 14.75 Juvenile Reference Book $ 33.50 Pamphlets $ 2.00 Magazines $ 4.75 Fiction $ 21.00 Law Periodical $ 34.95 Non-Fiction $ 32.50 Reference $ 83.75 Law Reference $ 110.00 Art $ 71.75 Film (16mm) $ 600.00 Film ( 8mm) $ 15.00 Film (Super 8mm) $ 15.00 Strips $ 8.25 Cassette Film Strips $ 57.00 Records $ 11.00 Videos (Tapes and C.D.$) $ 51.00 Audio Cassette $ 11.75 Computer Software (incl. C.D.$) $ 400.00 (Law) CD ROM $ 80.00 Books on Tape $ 22.00 Law Magazines $ 6.25 Compact Discs $ 25.00 Paperback Books $ 7.50 Page 19 PEPIP2001 MASTER _._.-.....— .......................n.,n..�r.�nn..ocoio nnn.MIACTco ... These figures are the raw costs of each category of books established from the ' library association. The figures do not include the "shelving cost" of each book as we recognize that not all books will be replaced. The coverage for shelving is a "valuable papers" exposure i.e. and covered elsewhere in this Policy. Therefore, the formula for adjusting a library loss is: # of items in a category X valuation figure + shelving cost under "valuable papers" coverage if item is replaced. This eliminates the need to adjust each item on its specific actual cash value or s replacement cost. The actual cost per item in the final adjustment is to be computed as of the time and place of loss or damage. (G) Coveted vehicles and/or contractors' equipment/unlicensed vehicles on or off premises (as per summary of values on file, with the Insured). The Insurer shall not be liable* for more than the actual cash value of the property at the time any loss or damage occurs and the lass or damage shall be ascertained or estimated according to such i actual cash value with proper deduction for depreciation. However, in no event shall the loss exceed what it would then cost to repair or replace the same with material of like kind and quality, nor the amount for which the Insured may be liable. * Unless specified as replacement cost (new). If summary of values, provided by the Insured, for vehicles/contractors' equipment provides valuation based on 100% "replacement cost pew", then recovery will be on the same basis. (H) Animals: The stated value as per schedule on file with the Insured. (I) Landcape, sand traps, tees, greens and athletic fields; the -actual replacement cost of sod, shrubs, sand (pertaining to sand traps. within 15 yards of greens), plants and trees; however the Insurer's liability for replacement of trees, plants and shrubs will belimited to the actual size of the destroyed plant, tree or shrub at the time of the loss up to a maximum size of 15 gallons per item. Page 20 REPIP2001 MASTER Definitions: Wherever the term "actual cash value" is used as respects real property or improvements and betterment's in this clause, or elsewhere herein, it shall mean replacement value less physical depreciation. The aforementioned valuations shall also be used for the purpose of the assessment adjustment clause of this Policy. 5) SPECIAL CONDITIONS: A) AUTOMATIC COVERAGE/REPORTING CONDITIONS Subject to the terms, conditions and limitations in Endorsement #18. It is understood and agreed that: (1) This Policy is automatically extended to cover all additional property as described in this Policy and associated Business Interruption / Extra Expense which may be purchased, leased, acquired or otherwise become at the risk of the Insured during the term of this Policy (2) This Insurer shall automatically cover such property and/or properties, subject to all the terms and conditions of the Policy to which this clause is attached; provided, however, that if therie shall be any other insurance covering such additional property this Policy shall not attach or provide coverage thereon until liability of all such other insurance shall have first been exhausted and sh ali then attach and cover only for its proportion of the excess of loss if any, over and above the amount due from such other insurance, whether valid or invalid or by solvent or insolvent insurers. (3) It is understood and agreed as respects earthquake shock at Policy annual inception, automatic coverage applies for the peril of earthquake shock for a period of 30 days from date of contractual requirement by any bond, certificate of participation or any similar investment, for any new locations where there is such a contractual requirement to provide earthquake shock coverage. Otherwise there is no Automatic Coverage for Earthquake Shock for any other new locations. Page 21 PEPIP2001 MASTER 6) DEFINITIONS:; A) LOSS 1 Means the loss by any peril or combination of covered peril(s) arising out of a single occurrence. When the term applies to loss or losses from earthquake shock, flood, and/or windstorm, the following provisions shall apply: (1) WINDSTORM Each loss by windstorm shall constitute a single claim hereunder; provided, if more than one windstorm shall occur within any period of seventy-two (72) hours during the term of this Policy, such windstorm shall be deemed to be a single windstorm within the meaning thereof. The Insured may elect the moment from which each of the aforesaid periods of seventy-two (72) hours shall be deemed to have commenced but no two such seventy-two (72) hour periods shall overlpp. The Insurer shall not be liable for any loss occurring before the effective date and time of the Policy. The Insurer will be liable for any losses occurring for a period of up to seventy-two (72) 'hours afterIthe expiration of this Policy provided that the first windstorm loss or damage within that seventy-two (72) hours occurs prior to the date 9 Y and time of expiration of this Policy. In the event of there being a difference of opinion between the Insured and the Insurer as to whether or not all windstorm losses sustained by the Insured during an elected period of seventy-two (72) hours arose out of, or was caused by a single atmospheric disturbance, the stated opinion of the United States Weather Bureau or comparable Authority in any other country or locality shall govern as to whether or not a single atmospheric disturbance continued throughout the period at the location(s) involved. I i Page 22 DCDIP7f1f11 MACTFP (2) FLOOD Each loss by flood shall constitute a single loss hereunder. (a) If any flood occurs within a period of the continued rising or overflow of any river(s) or stream(s) and the subsidence of same within the banks of such river(s) or stream(s); or (b) If any flood results from any tidal wave or series of tidal waves caused by any one disturbance; such flood shall be deemed to be a single occurrence within the meaning of this Policy. Should any time period referred to above extend beyond the expiration date of this Policy and commence prior to expiration, the Insurer shall pay all such flood losses occurring during sucl period as if such period fell entirely within the term of this Policy. The Insurer shall not be liable, however, for any loss cause by any flood occurring before the effective date and time of this Policy or commencing after the expiration date and time of this Policy. Flood shall mean a general condition of partial or complete inundation of normally dry land area from: (a) overflow of inland or tidal water; (b) unusual and rapid accumulation or run off of surface waters from any source. Flood shall also mean mudslide or mudflow, which is a river or flow of liquid mud caused by flooding as defined in a. or b. above. The definition of flood does not include ensuing loss or damage not otherwise excluded. Page 23 3 EARTHQUAKE SHOCK With respect to the peril of earthquake shock, any and all losses from this cause within a one hundred sixty-eight (168) hour period shall be deemed to be one loss. The Insured may elect the moment from which each of the aforesaid periods of one hundred sixty eight (168) hours shall be deemed to have commenced but no two such one hundred sixty eight (168) hour periods shall overlap. The Insurer shall not be liable for any loss caused by an earthquake shock occurring before the effective date and time of this Policy. The Insurer will be liable for any losses occurring for a period of up to one hundred sixty eight (168) hours after the expiration of this Policy provided that the first earthquake shock loss or damage within that one hundred sixty eight (168) hours occurs prior to the date and time of the expiration of this Policy. In the event of there being a difference of opinion between the Insured and the Insurer as to whether or not all earthquake shock losses sustained by the Insured during an elected period of one hundred sixty eight (168) hours arose out of, or were caused by a single earthquake shock, the stated opinion of the National Earthquake Shock Information Service of the United States Department of the Interior or comparable Authority in any other country or locality shall govern as to whether or not a single earthquake shock continued throughout the period at the locations involved. The term earthquake shock is defined as: earth movement meaning natural faulting of land masses, but not including subsidence, landslide, rock slide, earth rising, earth sinking, earth shifting or settling unless as a direct result of such earth movement. The definition of earthquake shock does not include ensuing loss or damage not otherwise excluded. Further Earthquake Sprinkler Leakage is covered outside of the "Earthquake Shock" definition and subject to the basic peril deductible. Page 24 ncnlonnnl RRACTCD i . (4) PERSONAL PROPERTY OF OTHERS: Any property (other than real property) belonging to others for which an Insured has assumed liability. This includes but is not limited to: • Articles of Clothing • Jewelry • Sound Equipment • Fine Arts (up to the sub-limit of unscheduled fine arts) • EDP Media & Hardware • Valuable Papers • Portable Electronic Equipment • Employee Tools (5) IMPROVEMENTS AND BETTERMENTS: Additions or changes made by an Insured/lessee at their own expense to a building they are occupying that enhance the building's value. Page 25 EPIP2001 MASTER SECTION HI INTERRUPTION OF BUSINESS EARNINGS/ EXTRA EXPENSE AND RENTAL INCOME Subject to the terms, conditions and exclusions stated elsewhere herein, this Policy provides coverage for: 1) COVERAGE: (A) BUSINESS INTERRUPTION Against loss resulting directly from interruption of business, services or,rental value caused by direct physical loss or damage, as covered by this Policy to real and/or personal property insured by this Policy, occurring during the term of this Policy. In the event of such loss or damage the Insurer shall be liable for the actual loss sustained iby the Insured for gross earnings as defined herein and rental value as defined herein resulting from such interruption of business, services, or rental value; less all charges and expenses which do not necessarily continue during interruption of business for only such length of time as would be required with the exercise of due diligence and dispatch to rebuild, repair or replace such part of the property as has been damaged or destroyed, commencing with the date of such damage or destruction and not limited by the date of expiration of this Policy. Due consideration shall be given to the continuation anormal charges and expenses including payroll expenses'to the extent necessary to resume operations of the Insured with the same quality of service which existed immediately preceding the loss. (B) EXTRA EXPENSE This Policy is extended to cover the necessary extra expenses at any'location as hereinafter defined, incurred by the Insured in order to continue as nearly as practicable the normal operation of the Insured's business following damage to or destruction as covered by this Policy of real or personal property insured by this Policy which is on premises owned, leased or occupied by the Insured. In the event of such damage or destruction, the Insurer shall be liable for such necessary extra expense incurred for only such length of time as would be required with the exercise of due diligence and dispatch to rebuild repair or replace such part of the property as has been damaged or destroyed commencing with the date of damage or destruction and not limited by the date of expiration of this Policy (hereinafter referred to as the period of restoration). Page 26 i'p PI P P nnI MASTER With respect to Power Generating Facilities, Extra Expense shall also include any extra expense incurred resulting from the purchase of electrical power from I any other power source subject to a $ —PER DECLARATION- Limit of Libility. However, this Policy shall not cover loss of Bonus Capacity Payrients, I performance Guarantee penalties or any other indirect or remote loss of whatever nature. 2 EXTENSIONS OF COVERAGE: A) INGRESS/EGRESS This Policy is extended to insure the actual loss sustained during the period of time not exceeding four consecutive weeks when, as a direct result of physical loss or damage caused by a covered peril(s) by this Policy, ingress to or egress from property covered by this Policy is prevented. B) INTERRUPTION BY CIVIL AUTHORITY This Policy is extended to include the actual loss sustained by the Insured, as covered hereunder during the length of time not exceeding four consecutive weeks when, as a direct result of damage to or destruction of property by the covered peril(s), access to such described premises is specifically prohibited by I order of civil authority. C) DEMOLITION AND INCREASED TIME TO REBUILD The Insurer shall, in the case of loss covered under this Policy, be liable also for loss to the interest covered by the Policy, occasioned by the enforcement of any local or state ordinance or law regulating the construction, repair or demolition of buildings or structures and in force at the time such loss occurs, which necessitates the demolition of any portion of the described building(s) not damaged by the covered peril(s). The Insurer shall also be liable for Toss due to the additional period of time required for repair or reconstruction in I conformity with the minimum standards of such ordinance or law of the building(s) described in this Policy damaged by a covered peril. THE INSURER SHALL NOT BE LIABLE UNDER THIS CLAUSE FOR: (1) More than the limit of liability as shown elsewhere in this Policy. (2) Any greater proportion of any loss to the interest covered by this Policy than the amount covered under this Policy on said interest bears to the total insurance and coverage on said interest, whether all such insurance contains this clause or not. Page 27 PEPIP2001 MASTER D) NON PRODUCTIVE PROPERTY If the Real and/or Personal Property sustaining loss or damage does not produce an income the actual loss sustained shall be the continuing fixed charges and expenses directly attributable to such non productive property. E) CONTINGENT BUSINESS INTERRUPTION AND/OR EXTRA EXPENSE AND/OR RENTAL VALUE Subject to the terms, conditions and exclusions of this Policy to which this extension is attached and to the following conditions, the business interruption, extra expense, rental value coverage provided by this Policy is extended to cover loss directly resulting from physical damage to property of the type not otherwise excluded bythis Policyat supplier or customer locations (whether pp such location is owned by the Insured or not) that prevents a supplier of goods and/or services to the Insured from supplying such goods and/or services, or that prevents a recipient of goods and/or services from the Insured' from accepting such.goods and/or services. F) EXTENDED PERIOD OF INDEMNITY EXTENSION Subject to the terms, conditions and exclusions of the Policy to which this extension is attached, the business interruption and/or extra expense and/or rental value coverage provided by this Policy is extended to provide,coverage for the additional length of time required to restore the business of the Insured to the condition that would have existed had no loss occurred commencing on either; (1) the date on which the Insurer's liability would otherwise terminate or; (2) the date on which rebuilding, repairing or replacement of such property as has been 'lost, damaged or destroyed is actually completed, whichever is later. The Insurer's Ifability under this extension shall terminate no later than twelve (12) months from the commencement date set forth above. I � Page 28 3) EXCLUSIONS: SPECIAL EXCLUSIONS • 1) The Insurer shall not be liable for any increase of loss which may be occasioned by the suspension, lapse, or cancellation of any lease or license, contract or order, unless such suspension, lapse, or cancellation results directly from the interruption of business and, then this Insurer shall only be liable for such loss as affects the Insured's earnings durirg and limited to, the period of indemnity covered under this Policy. 2) Media for electronic data processing: applicable only to the loss of earnings resulting from damage to or destruction of media for, or programming records pertaining to, electronic data processing or electronically controlled equipment, including data thereon by the covered peril(s). The length of time for which the Insurer shall be liable hereunder shall not exceed: a) Thirty (30) consecutive calendar days; or b) The length of time that would be required to rebuild, repair or leplace such property herein described as has been damaged or destroyed (other than media for, or programming records pertaining to, electronic data processing or electronically controlled equipment, including data thereon); whichever is the greater length of time. •) LOSS PAYMENT VALUATION: A) EXPENSES TO REDUCE LOSS: This Policy also covers such expenses as are necessarily incurred for the purpose of reducing loss under this section (except incurred to extinguish a fire); but in_no event to exceed the amount by which loss is thereby reduced. Page 29 5) CONDITIONS' APPLICABLE TO BUSINESS INTERRUPTION/EXTRA EXPENSE AND RENTAL VALUE If the Insured could reduce the loss resulting from the interruption of business: (1) by complete or partial resumption of operation of the property whether or not such property be lost or damaged, or; (2) by making use of merchandise or other property at the Insured's location or elsewhere; such reduction shall be taken into account in arriving at the amount of the loss hereunder. 6) DEFINITIONS:, A) GROSS EARNINGS "Gross Earnings" is defined as the sum of: (1) total net sales and; (2) other' earnings derived from the operation of the business less the cost of; (3) merchandise sold including packaging materials and; (4) materials and supplies consumed directly in supplying the service(s) sold by the Insured, and; (5) service(s) purchased from outside (not employees of the Insured) for resale that does not continue under contract. No other cost shall be deducted in determining gross earnings. In determining gross earnings, due consideration shall be given to the experience of the business before the date of loss or damage and the probable experience thereafter, had no loss occurred. Page 30 B) MERCHANDISE Shall be understood to mean, goods kept for sale by the Insured which are not the products of manufacturing operations conducted by the Insured. C) EXTRA EXPENSE The term "extra expense", whenever used in this Policy, is defined as the excess (if any) of the total cost incurred during the period of restoration chargeable to the operation of the Insured's business over and above the total cost that would normally have been incurred to conduct the business during the same period had no damage or destruction occurred. Any salvage value of property obtained for temporary use during the period of restoration, which remains after the resumption of normal operations, shall be taken into consideration in the adjustment of any loss hereunder. D) RENTAL VALUE The term "rental value" is defined as the sum of: (1) the total anticipated gross rental income from tenant occupa cy as furnished and equipped by the Insured, and; (2) the amount of all charges which are the legal obligation of the tenant(s) and which would otherwise be obligations of the Insured, and; (3) the fair rental value of any portion of said property which is occupied by the Insured, and; (4) any amount in excess of (1), (2) and (3) (above) which is an obligation due under the terms and conditions of any revenue bond, certificate of participation or other financial instrument. In determining rental value, due consideration shall be given to the experience before the date of loss or damage and the probable experience thereafter had no loss occurred. Page 31 1'1 rn.nnnn♦,nnc'rt0 (E) PERIOD OF RESTORATION The period during which business interruption and or rental interruption applies will begin on the date direct physical loss occurs and interrupts normal business operations and ends on the date that the damaged property should have been repaired, rebuilt or replaced with due diligence and dispatch (i.e. "normal speed). Page 32 D DIO)nn1 MA CTFR i SECTION IV GENERAL CONDITIONS 1) PERILS COVERED Subject to the terms, conditions and exclusions stated elsewhere herein, this Policy provides insurance against all risk of direct physical loss or damage occurring during the period of this Policy. 2 PERILS EXCLUDED This Policy does not insure against any of the following: A) Loss or damage caused by or resulting from moths, vermin, termites, or other insects, inherent vice, latent defect, faulty workmanship, wear, tear or gradual deterioration, contamination, rust, wet or dry rot, mold, unless caused by a peril not otherwise excluded, or loss or damage by ormal settling, shrinkage or expansion in building or foundation. B) Delay or loss of markets (this exclusion shall be inapplicable to the extent inconsistent with any time element coverage provided elsewhere herein). C) Breakdown or derangement of machinery and/or steam boiler explosion, unless loss not otherwise excluded herein ensues and then only for such ensuing loss. (This exclusion applicable only to boilers owned or controlled by Insured.) This exclusion does not apply to data processing equipment or media. D) Loss or damage caused by or resulting from misappropriation, conversion, inventory shortage, unexplained disappearance, infidelity or any dishonest act on the part of the Insured, it's employees or agents or others to whom the property may be entrusted (bailees and carriers for hire exce p ted) or other party of interest. E) Loss or damage caused by or resulting from electrical injury or disturbance from artificial causes to electrical appliances, devices of any kind or wiring, unless loss not otherwise excluded herein ensues and then only for such ensuing loss. This exclusion does not apply to data processing equipment or media. Page 33 I'-mnnnn.uncrcn F) Loss or damage to personal property resulting from shrinkage, evaporation, loss of weight, leakage, breakage of fragile articles, marring, scratching, exposure to light or change in color, texture or flavor, unless such loss 'is caused directly by fire or the combating thereof, lightning, windstorm, hail, explosion, strike, riot, or civil commotion, aircraft; vehicles, breakage of pipes or apparatus, sprinkler leakage, vandalism; and malicious mischief, theft, attempted theft, flood or earthquake shock (earthquake shock shall apply only to locations that are scheduled for earthquake shock. This applies only to California.). G) Loss or 'shortage disclosed upon taking inventory or mysterious disappearance of property (except property in the custody of carriers or bailees for,hire). H) Loss or damage caused by rain, sleet or snow to personal property in the open (except in the custody of carriers or bailees for hire). I) Loss caused directly or indirectly, by: (1) hostile or warlike action in time of peace or war, including action in hindering, combating or defending against an actual, impending or expected attack (a) by any government or sovereign power (de jure or de, facto), or by any Authority maintaining or using military, naval or air forces; or (b) by military, naval or air forces; or (c) by an agent of any such government, power, authority or forces; (2) any weapon of war employing atomic fission or radioactive force whether in time of peace or war; (3) insurrection, rebellion, revolution, civil war, usurped power, or action taken by governmental Authority or hindering, combating or defending against such an occurrence, seizure or destruction under quarantine or customs regulations, confiscation by order of any government or public authority, or risks of contraband' or illegal transportation or trade. Ili i I Page 34 J) Loss by nuclear reaction or nuclear radiation or radioactive contamination, all whether controlled or uncontrolled, and whether such loss be direct or indirect, proximate or remote, or be in whole or in part caused by, contributed to, or aggravated by the covered peril(s) in this �olicy; however, subject to the foregoing and all provisions of this Policy, direct loss by fire resulting from nuclear reaction or nuclear radiation or radioactive contamination is insured by this Policy. 3 TERRITORIAL LIMITS This Policy insures property within the United States. Personal property while in transit therein is extended to worldwide coverage. REINSTATEMENT Any reduction in the amount insured hereunder due to payment of any loss or losses shall be automatically reinstated for the balance of the term of this contract except as respects to those perils that are subject to annual aggregate limitation. -j F.O.B. SHIPMENTS This Insurer shall be liable for the interest of the Insured at sole option of the Insured, the interest of the consignee in merchandise which has been Sold by the Insured under terms of F.O.B. point of origin or other terms usually regarded as terminating shippers' responsibility short of point of delivery. •) PROTECTION AND PRESERVATION OF PROPERTY In case of actual or imminent physical loss or damage of the type insured against by this Policy, the expenses incurred by the Insured in taking reasonable and necessary actions for the temporary protection and preservation of property insured hereunder shall be added to the total physical loss or damage otherwise recoverable under the Policy and be subject-to the applicable deductible and without increase in the limit provisions contained in this Policy. Page 35 7) BREACH OF CONDITIONS. If any breach of a clause, condition or warranty of this Insurer contract or Policy shall occur prior to a loss affected thereby under this Policy, such breach shall not void the Policy nor avail the Insurer to avoid liability breach shall exist at the time of such Toss under this contract or Policy, and be a contributing factor to the loss for which claim is presented hereunder, it being understood'' that such breach of clause or condition is applicable only to the property affected thereby. Notwithstanding the foregoing, if the Insured establishes that the breach, 9 9, whether contributory or not, occurred without its knowledge or permission or beyond its control, such breach shall not prevent the Insured from recovering under this Policy. 8) PERMITS AND PRIVILEGES Anything in the printed conditions of this Policy to the contrary notwithstanding, permission is hereby granted: A) to maintain present and increased hazards; B) to make additions, alterations, extensions, improvements and repairs, to delete, demolish, construct and reconstruct, and also to include all materials,' equipment and supplies incidental to the foregoing operations of the property covered hereunder, while in, on and/or about the premises or adjacent thereto; C) for such use of the premises as usual and/or incidental to the business as conducted therein and to keep and use all articles and materials usual and/or incidental to said business in such quantities as the exigencies of the business require; D) to be or become vacant or unoccupied without limit of time. { Nor shall this Policy be prejudiced by: E) error in-stating the name, number, street, or location of any building(s) and contents covered hereunder, or any error or omission involving the name or title of the Insured; Page 36 PFPIP7l,l11 MGCTPP F) any act or neglect of the owner of the building, if the Insured hereunder is not the owner, or of any occupant of the within described premises other than the Insured, when such act or neglect is not within the control of the Insured, named herein; or G) by failure of the Insured to comply with any of the warranties or conditions endorsed hereon in any portion of the premises over which the Insured has no control. 9) PROTECTIVE SAFEGUARDS The Insured shall exercise due diligence in maintaining in complete working order all protective safeguard equipment and services. 10) NOTICE OF LOSS In the event of loss or damage insured against under this Policy, the Insured shall give immediate notice thereof to ROBERT F. DRIVER ASSOCIATES, P.O. Box 6450, Newport Beach, CA 92658-6450 (949) 756-0271, FAX (949) 756-2713 of such loss. The loss shall in turn be reported to Maxson Young Associates, Inc., One Sansome Street, Suite 950, San Francisco, California 94104 who is hereby authorized to represent the Insurer in the investigation and adjustment of any loss or damage under this Policy at the expense of the Insurer and without regard to the amount of loss or damage and/or applicable deductible if any. All losses incurred by San Diego Pooled Insurance Program Authority (SANDPIPA) and its members, as well as the San Diego Unified Port District, shall be reported to Walsh Adjusting Company, 3547 Camino Del Rio South, Suite D, San Diego, CA 92108 who is hereby authorized to represent the Insurer in the investigation and adjustment of any loss or damage under this Policy at the expense of the Insurer and without regard to the amount of loss or damage and/or applicable deductible, if any. All losses incurred by LAC-CAL shall be reported to McLarens Toplis, 5670 Wilshire Blvd. 20th Floor, Los Angeles, CA 90036 who is hereby authorized to represent the Insurer in the investigation and adjustment of any loss or damage under this Policy at the expense of the Insurer and without regard to the amount of loss or damage and/or applicable deductible, if any. Page 37 i For Washington Cities Insurance Authority and Washington Schools Risk Management Pool, in the event of loss or damage that falls within the reporting requirements, the Insured will give immediate notice to the Insurer. For those losses reported to the Insurer, the Insured agrees to use Crawford-THG International Loss Adjusters, 19109 — 36th West, Suite 105, Lynnwood, Washington 98036, for the investigation and adjustment of the loss. The Insured will retiain responsibility for the direction of the investigation and the overall adjustment of the loss. However, Insurers reserve the right to utilize other adjusting firms if and when they feel it necessary. 111) PROTECTION OF PROPERTY The Insured shall protect the property from further damage forthwith, separate the damaged and undamaged personal property stored in the best possible order and furnish a complete inventoryof the destroyed, damaged and undamaged property. The expense for same are covered expenses under this Policy. 12) ARBITRATION;OF VALUE In case the Insured and the Insurer shall fail to agree as to the amount; of loss, then, on the written demand of either, each shall select a competent and disinterested appraiser and notify the other of the appraisers selected. The appraiser shall first select a competent and disinterested umpire, and failing to agree upon such umpire, then, on request of the Insured or the Insurer such umpire shall be selected by judge of a court of record in the state in which the property covered is located. The appraisers shall as soon as practicable, appraise the loss stating separately thei loss of each item and failing to agree, shall submit their differences only to the umpire. An award in writing so itemized, of any two appraisers when filed with the Insurer shall determine the amount of loss-. The party selecting him shall pay each appraiser and the expenses of appraisal and umpire shall be paid by the parties equally. 1 Page 38 1 ;) PROOF OF LOSS The Insured shall render a signed and sworn proof of loss as soon as practical after the occurrence of a loss, stating the time, place and cause of Toss, the interest of the Insured and of all others in the property, the value thereof and the amount of loss or damage thereto. 14) SUBROGATION In the event of any loss payment under this Policy, the Insurer, shall be subrogated to all the Insured's rights of recovery thereof against any peison or organization and the Insured shall execute and deliver instruments and papers and do whatever else is necessary to secure such rights As respects subrogation it is agreed that, after expenses incurred in subrogation are deducted, the Insured and the Insurer shall share proportionately to the extent of their respective interests as determined by the amount of their net loss. Any amount thus found to be due to either party from the other shall be paid promptly. This Policy shall not be prejudiced by agreement made by the Insured releasing or waiving the Insured's right to recovery against third parties responsible for the loss, under the following circumstances only: (1) If made before the loss has occurred, such agreement may run in favor of any third party; (2) If made after loss has occurred, such agreement may run only in favor of a third party falling within one of the following categories at the time of loss: (a) a third party covered under this Policy; or (b) a corporation, firm, or entity (.1) owned or controlled by the Insured or in which the Insured owns capital stock or other proprietary interest, or (2) owning or controlling the Insured or owning or controlling capital stock or other proprietary interest in the Insured Page 39 ii1CDID7r n1 11AA CTFP i (3) whether made before or after loss had occurred, such agreement must Right of Recover y or waive the entireg of the named Insured against such Third partyor 9 (4) a Tenant of the Named Insured. 15) CANCELLATION This Policy may be canceled by the Insured at any time by written notice or surrender of this Policy. This Policy may also be canceled by or on behalf of the Insurer bydeliveringto the Insured ormailingto the Insured, byby registered, certified or other first class mail at the Insureds address,as shown 9 I, inthis written less than ninety (90) days prior to the effective Policy, tt n notice, not y I date of cancellation. The mailing of such notice as aforesaid shall be sufficient proof and this Policy and shall terminate at the date and hour specified in such notice. Notwithstanding what has been stated above, however, should this Policybe canceled for non-payment of assessment, the Insurer shall onlybe II, required to give the Insured ten (10) days notice. It is further agreed that this Insurer will abide by all the laws regulating the non- renewal or cancellation of Insured instituted by the State Department of Insurance, regardless of whether or not the Insurer is an admitted carrier in the State havingjuksdiction over the named insured. 'III If this insurance in total shall be cancelled by the Insured, the Insurer shall retain the customary short rate proportion of the premium hereon. If the Insurer I mid-term, cancellationshall elects to cancel coverage then such be handled on apro-rata basis without short rate penalty. p Y In the event of ate cancellationthe aggregate retention and specific limit amount t 9g 9 P shall be appliedpro rata with the balance, if an to be paid to the Insured. Pp Y� Payment or tender of anyunearnedpremium bythe Insurer shall not be Y condition recedent to the effectiveness of cancellation but such a ment shall II p payment be made forthwith. Cancellation shall not effect coverage on any shipment in transit or date of cancellation. Coverage will continue in full force until such property is safely delivered and accepted at place of final destination. ' p II III i i I 1 1 Page 40 it i 1 ,) ABANDONMENT There shall be no abandonment to the Insurer of any property. 1 '') ASSIGNMENT Assignment or transfer of this Policy shall not be valid except with the written consent of the Insurer. 1 :) SALVAGE When, in connection with any loss hereunder, any salvage is received prior or subsequent to the payment of such loss, the loss shall be figured on the basis on which it would have been settled had the amount of salvage been known at the time the loss was originally determined. 1 ) OTHER INSURANCE Permission is hereby granted to the Insured to carry more specific insurance on any property covered under this Policy. This Policy shall not attach or become insurance upon any property which at the time of loss is more specifically described and covered under any other policy form until the liability of such other insurance has first been exhausted and shall then cover only the excess of value of such property over and above the amount payable under such other insurance, whether collectible or not. This Policy, subject to its conditions and limitations, shall attach and become insurance upon such property as respects any peril not covered by such other insurance and not otherwise excluded herein. In the event of a loss that is covered by other insurance, wherein this Policy is excess of any amount paid by such other insurer shall be applied to the deductible amount stated elsewhere. Should the amount paid by such other insurance exceed these deductibles, no further deductibles shall be applied under this Policy. Page 41 I I I I II i 20) EXCESS INSURANCE Permission is granted the Insured to maintain excess insurance over the limit of liability set forth in this Policy without prejudice to this Policy and the existence of such insurance, if any, shall not reduce any liability under this Policy. Also it is understood and agreed as respects earthquake shock or flood, that in the event of reduction or exhaustion of the aggregate limits of liability under the underlying Policy(s) by reason of loss(es) thereunder, this Policy shall: (a) in the event of reduction, pay out excess of the reduced underlying limit and (b) in the event of exhaustion, continue in force as the underlying Policy. 21) RIGHT TO REVIEW RECORDS FOLLOWING AN INSURED LOSS The Insured as often as may be reasonably required, shall submit and so far as within their power, cause all other persons interested in the property or employees to submit to examination under oath by any person named by the Insurer relative toany and all matters in connection with a claim, and produce for examination all books of account, bills, invoices and other vouchers or. certified copies; thereof if originals be lost, at such reasonable time and place as may be designated by the Insurer or their representatives and shall permit extracts and copies thereof to be made. 22) CONCEALMENT AND FRAUD This entire Policy shall be void, if whether before or after a loss, the Insured has willfully concealed or misrepresented any material facts or circumstance concerning this Policy of the subject thereof, or the interest of the Insured therein, or in case of any fraud or false swearing by the Insured relating thereto. � I Page 42 i 2�i) LIBERALIZATION If during the period that coverage is in force under this Policy, or within forty- five (45) days prior to the inception date thereof, on behalf of this Insurer there • be adopted, or filed with and approved or accepted insurance authorities, all in conformity with law, any changes in the form attached to this Policy by which this form of Policy could be extended or broadened without inc eased assessment charge by endorsement or substitution of form, the such extended broadened Policy shall inure to the benefit of the Insured hereunder as though such endorsement or substitution of form had been made. It is hereby agreed that the terms and conditions of this form are substituted for those of the Policy to which it is attached, the provision of the latte' being waived. 4,) LOSS PAYABLE CLAUSE In the event of a loss occurring under this Policy, the loss payment will b made in favor of the Insured(s) submitting the claim alone, and not to the program name. 5) FULL WAIVER The terms and conditions of this form and endorsements attached thereto are substitute for those of the Policy to which it is attached, all terms, conditions and endorsements of latter being waived. :6) REPORT OF VALUES/PREMIUM Premium shall be computed by applying the agreed rate against values commensurate with the valuation clause. Values declared to the Insurer are for premium purposes only and shall not limit the recovery under any area of coverage afforded by this Policy. Page 43 ' SECTION V DATA PROCESSING MEDIA This Policy is extended to provide coverage for loss or damage to data processing '' media: . 1), COVERAGE: A) PROPERTY COVERED I ' Active data processing media, being property of the Insured or property of others for'which the Insured may be liable. B) PERILS COVERED This extension insures against all risks of direct physical loss or damage to the property covered except as hereinafter provided. 2) EXTENSIONS OF COVERAGE: None. 3 EXCLUSIONS A) PROPERTY EXCLUDED I � ' This extension does not insure accounts, bills, evidences of debt, valuable papers, re'cords, abstracts, deeds, manuscripts or other documents except as they may be converted to data processing media form, and then only in that form,' or any data processing media which cannot be replaced with other of like kind and quality. Page 44 B) PERILS EXCLUDED This extension does not insure against loss, damage or expense resulting from or caused directly or indirectly by any of the following: (1) Data processing media failure or breakdown or malfunction of the data processing system including equipment and component parts while said media is being run through the system. (2) Dryness or dampness of atmosphere, extremes of temperature, corrosion, or rust unless directly resulting from physical damage to the data processing system's air conditioning facilities cause by a peril not excluded by the provisions of this Policy. (3) Delay, loss of market, loss of use or interruption of business, except as provided for elsewhere in this Policy. (4) Inherent vice, wear, tear, gradual deterioration or depreciation. (5) Any dishonest, fraudulent or criminal act by the Insured, a partner therein or an officer, director, employee or trustee thereof, whether acting alone or in collusion with others. For the purpose of this exclusion an act of vandalism or malicious damage by an employee shall not constitute a dishonest, fraudulent or criminal act. (6) War risks or nuclear risks as excluded in the Policy to which this extension is attached. Exclusions 1, 2, and 4 above do not apply to ensuing loss or damage unless another exclusion applies. •) LOSS PAYMENT BASISNALUATION: The limit of this Insurer's liability for loss or damage shall not exceed: - A) The amount per article specified at the time of loss, said amount being the agreed value thereof for the purpose of this Policy. B) As respects all other property, the full reproduction cost of the property as detailed elsewhere in this Policy; if not replaced or reproduced, blank value of media; all subject to the applicable limit of liability stated in the schedule of values. Page 45 Ili I 5) SPECIAL CONDITIONS: None 6)I, DEFINITIONS: A) ACTIVE DATA PROCESSING MEDIA: Wherever used in this contract, shall mean all forms of converted data and/or program and/or instruction vehicles employed in the Insured's data processing operation. I I i II I i I I , Page 46 • I SECTION VI FINE ARTS FLOATER 1) COVERAGE: The provisions and stipulations of this Section shall apply only to the p operty covered hereunder and none of the provisions and stipulations of this Policy, including any other endorsement made a part thereof, except the canc Ilation provision, shall apply to this Section VI. If any of the property covered by this Section is also covered under anyother provisions of the Policy of which this Section is made a part, those proisions are hereby amended to exclude such property, the intent being t at the coverage under this Section is the sole coverage on such property. This Section is extended to cover fine arts, which are the property of the Insured or the property of others in the custody or control of the Insure while on exhibition or otherwise within the limits of the Continental United States . A) PROPERTY COVERED (1) Objects of art of every kind and description, the property of the Insured, the property of others and property in which the Insured shall have a fractional ownership interest which are owned by or have been leased, loaned, rented or otherwise made availa le to the Insured. "Property" shall mean paintings, drawings, etc ings, prints, rare books, manuscripts, rugs, tapestries, furniture, st tuary and all other bonafide works of art and other objects of rarity, historic value, cultural interest or artistic merit, which are part of the collections of the Insured, or in the care, custody or control of the Insured, and their frames, glazing and shadow boxes. (2) Objects of art, and property incidental thereto, the property of the Insured, or of others for which the Insured may be liable and while such property is on or away from the Insured's premises in accordance with the terms and conditions of this Policy. Page 47 B) THIS FLOATER INSURES AGAINST All risks of loss of or damage to the above described property except as hereinafter provided. C) "WALL TO WALL" ("NAIL TO NAIL") COVERAGE This Section covers the Insured's property on a "Wall to Wall" ("Nail to Nail") basis, or domicile to domicile basis, as applicable, from the time said property is removed from its normal repository incidental to shipment point designated until returned thereto or otherg by the owner or owner's agent prior, to return shipment, including while in transit to or from points of consolidation or deconsolidation, packing, repacking or unpacking, while at such locations duringsuchprocesses or awaitingshipment. P Coverage shall terminate upon arrival of the covered property at the final destination designated by the owner or owner's agent, or upon expiration of this Policy, whichever may occur first, except that expiration of this Policy shall not prejudice coverage of any risk then in transit. 2) EXTENSIONS OF COVERAGE: None 3) EXCLUSIONS:; A) Loss or damage occasioned by: wear and tear, gradual deterioration, insects, vermin, inherent vice or damage sustained due to and resulting from any repairing, restoration or retouching process; i I Page 48 PPPIP9lf 1 MARTFR I i I B) Loss or damage caused by or resulting from: (1) Hostile or warlike action in time of peace or war, including action in hindering, combating or defending against an actual, impen ing or expected attack; (a) by any government or sovereign power (de jure or de fa to), or by any authority maintaining or using military, naval or air forces; or (b) by military, naval or air forces; or (c) by an agent of any such government, power, authority or orces; (2) Any weapon of war employing atomic fission or radioactiv force whether in time of peace or war; (3) Insurrection, rebellion, revolution, civil war, usurped power, or action taken by governmental authority in hindering, combating or defending against such an occurrence, seizure or destruction under quarantine or customs regulations, confiscation by order Hof any government or public authority, or risks of contraband or illegal transportation or trade. C) Loss by nuclear reaction or nuclear radiation or radioactive contamination, all whether controlled or uncontrolled and whether such loss be direct or indirect, proximate or remote, or be in whole or in part caused by, contributed to, or aggravated by the covered perils covered against in this endorsement; however, subject to the foregoing and all provisions of this endorsement, direct loss by fire resulting from nuclear reaction or 'nuclear radiation or radioactive contamination is covered against by this endorsement. D) Any dishonest, fraudulent or criminal act by the Insured, a partner therein or an officer, director, employee or trustee thereof, whether acting alone or in collusion with others. For the purpose of this exclusion an act of vandalism or malicious damage by an employee shall not constitute a dishonest, fraudulent or criminal act. Page 49 IFPIP9001 MASTFR II'I 4) LOSS PAYMENT BASISNALUATION: VALUATION The valuation of each article of property covered by this Section shall be determined as follows: (1) Property of the Insured shall be covered for and valued at the current fair market value of each article indicated on the books and records of the Insured prior to loss, according to the Insured's valuation of each object covered. (2) Property of others loaned to the Insured and for which the Insured may be legally liable, or which the Insured has been instructed to insure, shall be covered for and valued at the amount agreed upon for each article by the Insured and owner(s) as recorded on the books and records of the Insuredprior to loss. (3) Otherwise, in the absence of recorded current fair market values or agreed values for each article covered, the Insurer shall not be liable beyond the fair market value of the property at the time any loss or damage occurs. Said value shall be ascertained by the Insured and the Insurer or, if they differ, then the amount of value or loss shall be determined as provided in the following appraisal clause. 5) SPECIAL CONDITIONS: (1) Misrepresentation and Fraud: This entire Section shall be void if, whether before or after a loss, the Insured has concealed or misrepresented any material fact or circumstance concerning this Policy or the subject thereof, or the interest of the Insured therein, or in case of any fraud or false swearing by the Insured relating thereto. (2) Notice of toss: The Insured shall as soon as practicable report in writing to the Insurer or its agent every loss, damage or occurrence which may give rise to a claim under this Section and shall also file with the Insurer or its agent within ninety (90) days from the date of discovery of,such loss, damage or occurrence, a detailed sworn proof of loss. I � I � Page 50 PFPIP2001 MASTER (3) Examination under Oath: The Insured, as often as may be reasonably required, shall exhibit to any person designated by the Insurer all that remains of any property herein described, and shall submit, and insofar as is within its power cause its employees, Insured and others to submit to examination under oath by any person named by the Insurer and subscribe the same; and, as often as may be reasonably required, shall produce for examination all writings, books of account, bills, invoices and other vouchers, or certified copies thereof if originals be lost, at such reasonable time and place as may be designated by the Insurer or its representative and shall permit extracts and copies thereof to be made. No such examination under oath or examination of books or documents, nor any act of the Insured or any of its employees or representatives in connection with the investigation of any loss or claim hereunder, shall be deemed a waiver of any defense which the Insured might otherwise have with respect to any loss or claim, but all such examinations and acts shall be deemed to have been made or done without prejudice to the Insurer's liability. (4) Settlement of Loss: All adjusted claims shall be paid or made good to the Insured within sixty (60) days after presentation and acceptance of satisfactory proof of interest and loss at the office of the Insurer. No loss shall be paid or made good if the Insured has collected the same from others. (5) No Benefit to Bailee: This Section shall in no way inure directly or indirectly to the benefit of any carrier or other bailee. (6) Subrogation or Loan: If in the event of loss or damage the Insured shall acquire any right of action against any individual, firm or corporation for loss of, or damage to, property covered hereunder, the Insured will, if requested by the Insurer, assign and transfer such claim or right of action to the Insurer or, at the Insurer's option, execute and deliver to the Insurer the customary form of loan receipt upon receiving an advance of funds in respect of the loss or damage; and will subrogate the Insurer to, or will hold in trust for the Insurer, all such rights of action to the extent of the amount paid or advanced, and will permit suit to be brought, in the Insured's name under the direction of and at the expense of the Insurer. Page 51 IEPIP2001 MASTER (7) Loss Clause: Any loss, hereunder shall not reduce the amount of this Section, except in the event of payment of claim for total loss of an item specifically scheduled hereon. If no claim is paid for total loss of one or more scheduled items, the unearned premium applicable to such items will be refunded to.the Insured or applied to the premium due on item(s) replacing those on which the claim was paid. (8) Protection and Preservation of Property: In case of actual or imminent physical loss or damage of the type insured against by this Policy, the expenses incurred bythe Insured in takingreasonable and necessary actions for the temporary protection and preservation of property;insured hereunder shall be added to the total physical loss or damage otherwise recoverable under the Policy and be subject to the applicable deductible and without increase in the limit provisions contained in this Policy. (9) Suits: No; suit, action or proceeding for the recovery of any claim under this Section shall be sustainable in any court of law or equity unless the same be commenced within twelve (12) months next after discovery by whichgives rise to the claim, provided the Insured of the occurrence h however, that if by the laws of the state within which this Section is issued, such limitation is invalid, then any such claims shall be void unless, such action, suit or proceeding be commenced within the shortest limit' of time permitted by the laws of such state. (10) Appraisal:' If the Insured and the Insurer fail to agree as to the amount of loss, each shall on the written demand of other, made within sixty (60) days after receipt of proof of loss by the Insurer, select a competent and disinterested appraiser, and the appraisal shall be made at a reasonable time and place. The appraisers shall first select a competent and disinterested umpire, and failing for fifteen (15) days to agree upon such umpire, then on the request of the Insured or the Insurer, such) umpire shall be selected by a judge of a court of record in the state in which such appraisal is pending. The appraisers shall then appraise the loss, stating separately the actual cash value at the time of loss and the amount of loss, and failing to agree shall submit their differences to the umpire. An award in writing of any two shall determine the amount of loss. The Insured and the Insurer shall each pay their chosen appraiser and shall bear equally the other expenses of the appraisal and umpire. The Insured shall not be held to have waived any of its rights by any act relating to appraisal. 11 Page 52 nrrnnnnn. uwoTrn (11) Civil Authority: Property covered under this Section against the peril of fire is also covered against the risk of damage or destruction by Civil authority during a conflagration and for the purpose of retarding the same; provided that neither such conflagration nor such damage or destruction is caused or contributed to by a peril otherwise excluded herein. (12) Conformity to Statute: Terms of this Section that are in conflict with the statutes of the state wherein this Section is issued are hereby amended to conform to such statutes. (13) Changes: Notice to any agent or knowledge possessed by any agent or by any other person shall not effect a waiver or a change in any part of this Section or stop the Insured from asserting any right under the terms of this Section, nor shall the terms of this Section be waived or changed except by endorsement issued to form a part of this Section. (14) Additional Covered Party(ies): The owner and owners defined as associations, corporations, firms, institutions, museums, persons and others who own or control collections, objects or articles who make them available to the Insured, and temporary borrowers or custodians (but not carriers, packers or shippers) of property covered, are adlitional Insured(s) hereunder, but only as respects coverage afforded said Insured's property. (15) Packing: It is agreed by the Insured that the property covered hereunder be packed and unpacked by competent packers. (16) Other Insurance: This fine arts floater Section is excess coverage over any other valid and collectible insurance which may apply to any objects of art for which coverage would apply under this Policy. (17) Pair And Set: In the event of the total loss of any article or articles which are a part of a set, the Insurer agrees to pay the Insured the full amount of the value of such set and the Insured agrees to surrender the remaining article or articles of the set to the Insurer. 61 DEFINITIONS: Fine Arts includes but is not limited to: Paintings, rare books, manuscripts, pictures, prints, etchings, drawings, tapestries, bronzes, statuary potteries, porcelains, marbles and other blonafide works of art or items of rarity or historical value of the Insured or in their care, custody or control. Page 53 -II DID9l1M AAACTCI7 SECTION VII EXTRA EXPENSE ELECTRONIC DATA PROCESSING 1) COVERAGE: This Policy insures against the necessary extra expense as hereinafter defined, incurred by the Insured in order to continue, as nearly as practicable the normal operation of its business, immediately following damage to or destruction of the data processing system including equipment and component parts thereof and data processing media therefor, owned, leased, rented or under the control of the Insured, asi a direct result of all risks of physical loss or damage, but in no event to exceed the amount indicated in the declarations. The extension is extended to include actual loss sustained, as covered hereunder, during the period of time, hereinafter defined, (1) when as a direct result of a covered peril, the premises in which the property is located is so damaged as to prevent access to such property or (2) when as a direct result of a covered peril, the air conditioning system or electrical 'system necessaryfor� the operation of the data ro'cessin 9 p p equipment is so damaged as to reduce or suspend the Insureds ability to actually perform the operations normally performed by the data processing system. This extension is further extended to include necessary extra expense incurred by the Insured as covered hereunder, during the length of time, not exceeding four (4) consecutive weeks, when as a direct result of damage to or destruction 11 of property adjacent to the premises herein described by the covered perils, access to such described premises is specifically prohibited by order of Civil authority. _ Page 54 PFPIP9001 MASTFR MEASURE OF RECOVERY If the above described property is destroyed or so damaged by the covered perils occurring during the term of this extension so as to necessitate the incurrence of extra expense (as defined in this extension), this Insurer shall be liable for the extra expense so incurred, not exceeding the actual loss sustained, for not exceeding such length in time, hereinafter referred to as the "Period of Restoration", commencing with the date of damage or destruction and not limited by the date of expirahion of this Policy, as shall be required with the exercise of due diligence and dispatch to repair, rebuild or replace such part of said property as may be destroyed or damaged. This Insurer's liability during the determined period of restoration, shall be limited to the declared amount per period of time indicated in the declarations (if a time period is declared), but in no event to exceed the amount of coverage provided. 2 EXTENSIONS OF COVERAGE: None. 3 EXCLUSIONS: This extension does not insure extra expense incurred as a result of the following perils: A) The suspension, lapse, or cancellation of any lease, license, contract or order except as a result of physical damage caused by an insured peril. B) Interference at premises by strikers or other persons with repairing or replacing the property damaged or destroyed or with the resumption or continuation of the Insured's occupancy. _ C) Loss or destruction of accounts, bills, evidences of debt, valuable papers, records, abstracts, deeds, manuscripts or other documents except as they may be converted to data processing media form and then only in that form. D) Loss of or damage to property rented or leased to others while away from the premises of the Insured. Page 55 Icninnnna RA A CTFA E) Error in machine programming or instructions to machine. F) Inherent vice, wear, tear, gradual deterioration or depreciation. { G) Any dishonest, fraudulent or criminal act by the Insured, a partner therein or an officer, director, employee or trustee thereof, whether acting alone or in collusion with others. For the purpose of this exclusion an act of vandalism or malicious damage by an employee shall not constitute a dishonest, fraudulent or criminal act. H) Damage due to mechanical failure, faulty construction, error lin design unless fire or explosion ensues, and then only for loss, damage or expense caused by such ensuing fire or explosion. I) Delay or loss of market. J) War or nuclear risks as excluded in the Policy to which this extension is attached. li 1 11 I 4)' LOSS PAYMENT BASIS/DETERMINATIONNALUATION: i 11 DEDUCTIBLE I Each and every loss occurring hereunder shall be adjusted separately and from the j amount of each such loss when so adjusted the amount indicated in the declarations shall be deducted. 1 I 5), SPECIAL CONDITIONS: RESUMPTION OF OPERATIONS I As soon as practicable after any loss, the Insured shall resume complete 11 or partial business operations of the property herein described land, in so far as practicable, reduce or dispense with such additional charges and r ex enses as are beingincurred. P II II Page56 PEPIP2001 MASTER I 11 I 6) DEFINITIONS: A) EXTRA EXPENSE The term "Extra Expense" wherever employed in this extension is defined as the excess (if any) of the total cost during the period of restoration of the operation of the business over and above the total cost o such operation that would normally have been incurred during the same period had no loss occurred; the cost in each case to include the expense of using other property or facilities of other concerns or other eme gency expenses. In no event however, shall this Insurer be liable for loss of profits or earnings resulting from diminution of business, nor for any direct or indirect property damage loss insurable under property damage policies, or for expenditures incurred in the purchase, construction, repair or replacement of any physical property unless incurred for the purpose of reducing any loss under this extension not exceeding, howev�r, the amount in which the loss is so reduced. Any salvage value of the property so acquired that may be sold or utilized by the Insured upon resumption of normal operations, shall be taken into consideration in the adjustment of any loss hereunder. B) NORMAL The term "normal" wherever used in this extension shall mean: The condition that would have existed had no loss occurred. Page 57 PFPIP2001 MASTER SECTION VIII MOBILE / CONTRACTORS EQUIPMENT 1) COVERAGE: , This Policy insures only mobile machines, including equipment thereof while attached thereto or located thereon, such as bulldozers, drag lines, power shovels, derricks, drills, concrete mixers and other machinery of a' mobile nature. This extension 'insures against all risks of direct loss or damage to the above described property from any external cause except as provided below. A) Loss or damage due to wear, tear, rust, corrosion, latent defect, mechanical breakage, or improper assemblage. B) Loss or damage due to the weight of the load imposed on the machine exceeding,the capacity for which such machine was designed. C) Loss or damage to crane or derrick boom(s) and jib(s) of lattice construction while being operated unless directly caused by fire, lightning, hail, windstorm, earthquake shock, explosion, riot, riot attending a strike, civil commotion, actual physical contact with an aircraft or airborne missile including objects falling therefrom, collision with other vehicles or other contractors equipment whether or not such other equipment is covered hereunder, landslide, or upset of the unit of which it is a part, (but only when and to the same extent that such other perils are covered by the Policy). D) Loss or damage due to explosion arising from within steam boilers. E) Loss or damage to dynamos, exciters, lamps, switches, motors or other electrical a liances or devices, includingwiring, caused bylightning or Pp 9 g � 9 other electrical currents (artificial or natural) unless fire ensues and then for the loss by fire only. F) Loss or damage due to dishonesty of Insured's employees or persons to whom the Insured's property is entrusted. G) Loss or damage caused by or contributed to failure of the Insured to keep Iand maintain the property in a thorough state of repair. Page 58 H) Loss or damage caused by or resulting from: (1) hostile or warlike action in time of peace or, including a tion in hindering, combating or defending against an actual, impending or expected attack, (a) by any government or sovereign power (de jure or de facto) or by any authority maintaining using military, naval or air forces; or (b) any military, naval or air forces; or (c) by an agent of any such government, power, authority or forces; (2) any weapon of war employing atomic fission or radioactive force whether in time of peace or war; (3) insurrection, rebellion, revolution, civil war, usurped power, or action taken by governmental authority in hindering, combating or defending against such an occurrence, seizure or destruction under quarantine or customs regulations, confiscation by order of any government or public authority, or risks of contraband or illegal transportion or trade; I) Loss by nuclear reaction or nuclear radiation or radioactive contamination, all whether controlled or uncontrolled, and whether such loss be direct or indirect, proximate or remote, or be in whole or in part caused by, contributed to, or aggravated by the peril(s) covered against in this endorsement; however, subject to the foregoing and all provisions of this Policy, direct loss by fire resulting from nuclear reaction or nuclear radiation or radioactive contamination is covered against by this Policy. 2) EXTENSIONS OF COVERAGE: None Page 59 3) EXCLUSIONS: A) Automobiles, motorcycles, motor trucks, or parts thereof. B) Buildings used as camps or otherwise. C) Machinery or equipment or building materials to be installed in, any building for, the purpose of becoming a part thereof; nor on any property which has become a permanent part of any structure. ' D) Property that is located underground. E) Property while waterborne except while being transported on any regular ferry. F) Storage risks at premises controlled or leased by the Insured, except where incidental to the regular or frequent use of the equipment or property. G) Plans, blue',prints, designs or specifications. 4) LOSS PAYMENT BASISNALUATION: See Section II, Item 4.G, page 21 5) SPECIAL CONDITIONS: This extension covers only within the limits of the United States of America. It is a condition; of this Policy that all articles covered hereunder are in sound condition at the time of attachment of this Policy. 6) DEFINITIONS: Contractors Equipment shall include but is not limited to: Land vehicles including equipment and apparatus attached thereto, whether or not self-propelled and not subject to motor vehicle registration. II Page 60 SECTION IX ACCOUNTS RECEIVABLE • ) COVERAGE: This Policy covers the loss of or damage resulting from "all risks of direct physical loss or damage" to the Insured's records of accounts receivable as defined below, occurring during the Policy period. ") EXTENSIONS OF COVERAGE: None EXCLUSIONS: This Extension does not apply: A) To loss due to any fraudulent, dishonest or criminal act by the Insured, a partner therein, or an officer, director, employee or trustee theref, while working or otherwise and whether acting alone or in collusion with others. For the purpose of this exclusion an act of vandalism or malicious damage by an employee shall not constitute a dishonest, fraudulent or criminal act. B) To loss due to bookkeeping, accounting or billing errors or omissions. C) To loss, the proof of which as to factual existence, is dependent upon an audit of records or an inventory computation; but this shall not preclude the use of such procedures in support if claim for loss which the Insured can prove through evidence wholly apart therefrom, is due solely to a risk of loss to records of accounts receivable not otherwise excluded hereunder. D) To loss due to alteration, falsification, manipulation, concealment, destruction or disposal of records of accounts receivable committed to conceal the wrongful giving, taking, obtaining or withholding o money, securities or other property, but only to the extent of such wrongful giving, taking, obtaining or withholding. Page 61 4) LOSS PAYMENT BASISNALUATION: DETERMINATION OF RECEIVABLES; DEDUCTIONS When there is proof that a loss covered by this Policy has occurred but • the Insured cannot accurately establish the total amount of accounts receivable outstanding as of the date of such loss, such amount shall be based on the Insured's monthly statements and shall be computed as follows: (1) Determine the amount of all outstanding accounts receivable at the end of the same fiscal month in the year immediately proceeding the year in which the loss occurs; v (2) Calculate the percentage of increase or decrease in the average monthly total of accounts receivable for the twelve (12) months immediately preceding the month in which the loss occurs as compared with such average for the months of the preceding year; (3) The amount determined under (1) above, increased or decreased by the percentage calculated under (2) above, shall be the agreed total amount of accounts receivable as of the last day of the fiscal month in which said loss occurs; (4) The 'amount determined under (3) above shall be increased or decreased in conformity with the normal fluctuations in the amount of accounts receivable during the fiscal month involved, due consideration being given to the experience of the business',since the last day of the last fiscal month for which statement has been rendered. There shall be deducted from the total amount of accounts receivable, however established, the amount of such accounts evidenced by records not lost or damaged or otherwise established or collected by the Insured, and an amount to allow for probable bad debts, which would normally have been uncollectible by the Insured. All.un'earned interest and service charges shall be deducted. 1'5) SPECIAL CONDITIONS: 11, None � � l Page 62 PFPIP7001 MASTER 6) DEFINITIONS: • ACCOUNTS RECEIVABLE: (1) All sums due the Insured from customers, provided the Insured is unable to effect collection thereof as the direct result of Ibss or damage to records of accounts receivable. (2) Interest charges on any loan to offset impaired collections pending repayment of such sums made uncollectible by such loss or damage. (3) Collection expense in excess of normal collection cost and made necessary because of such loss or damage. (4) Other expenses, when reasonably incurred by the Insured, in re- establishing records of accounts receivable following such loss or damage. Page 63 acnsnInni 64n crcv ENDORSEMENT NO. 1 JOINT LOSS ADJUSTMENT ENDORSEMENT In the event of damage to or destruction of property, at a location designated in this Policy and also designated in a boiler and machinery insurance policy and there is a disagreement between the Insurers and the Insured with respect to: 0) Whether such damage or destruction was caused by a peril covered against by this Policy or by an accident covered against by such boiler and machinery insurance policy(ies) or (2) The extent of participation of this Policy and of such boiler and machinery insurance policy in a loss that is covered against, partially or wholly, by one or all of said policy(ies). ,This Insurer shall, upon written request of the Insured, pay to the Insured one-half of ,the amount of the loss which is in disagreement, but in no event more than this Insurer would have paid if there had been no boiler and machinery insurance policy(ies) in effect, subject to the following conditions: (1) The amount of loss which is in disagreement after making provisions for any undisputed claims payable under the said policy(ies) and after the amount of the loss is agreed by the Insured and the Boiler and Machinery Insurer and this Insurer is limited to the minimum amount remaining payable under either the boiler and machinery insurance policy(ies). (2) The boiler and machinery insurer(s) shall simultaneously pay to the Insured, one-half of the said amount which is in disagreement. (3) The payments by the insurer(s) hereunder and acceptance of the same by the Insured signify the agreement of the insurer(s) to submit to and proceed with arbitration within ninety (90) days of such payments: 1,1 The arbitrators shall be three (3) in number, one of whom shall be appointed by the boiler insurer(s) and one of whom shall be appointed by the Insur ed'hereon and the third appointed by consent of the other two, and the decision by the arbitrators_shallbe binding on the insurer(s) and the Insured and that judgment upon such award may be entered in any court of competent jurisdiction. (4) The Insured agrees to cooperate in connection with such arbitration but not to intervene therein. 1 (5) This agreement shall be null and void unless the Policy of the boiler and machinery Insurer is similarly endorsed. ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED. I Page 64 ENDORSEMENT NO. 2 i PROPERTY JOINT LOSS ENDORSEMENT I, the event of damage to or destruction of property at a location designated in this 'f olicy and also designated in an excess insurance policy(ies) and if there is U isagreement between the insurers with respect to: ( ) whether such damage or destruction was caused by a single event or by multiple events or; o) the extent of participation of this Policy and any excess insurance policy in a loss covered against partially or wholly, by one of said Policy or policy(ies). his Insurer shall, upon written request of the Insured, pay to the Insured one-half of e amount of the loss which is in disagreement, but in no event more than this surer would have paid if there had been no excess insurance or polic (ies) in •ffect, subject to the following conditions: 11) the amount of loss which is in disagreement after making provisions for any undisputed claims payable under the said policy(ies) and after the amount of the loss is agreed by the Insured and the insurers is limited to the minimum amount remaining payable under either the primary insurance policy or1 excess insurance policy(ies); 12) the excess insurers shall simultaneously pay to the Insured one-half of the said amount which is in disagreement; and, ,3) the payments by the Insurers hereunder and acceptance of the same by the member signify the agreement of the insurers to submit to and proceed with arbitration within ninety (90) days of such payments. he arbitrators shall be three (3) in number, one of whom shall be appointed by the xcess insurer(s) and one of whom shall be appointed by this Insurer and he third 1�ppointed by consent of the other two, and the decision by the arbitrators shall be ending on the insurers and the Insured, and that judgment upon such award may be ntered in any court of competent jurisdiction. 4) The Insured agrees to cooperate in connection with such arbitration but not to intervene therein. ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED. Page 65 ENDORSEMENT NO. 3 PAGE 1OF2 SEEPAGE AND/OR POLLUTION AND/OR CONTAMINATION EXCLUSION; DEBRIS!REMOVAL AND COST OF CLEAN UP EXTENSION; AUTHORITIES EXCLUSION SEEPAGE AND/OR POLLUTION AND/OR CONTAMINATION EXCLUSION: Notwithstanding any provision in the Policy to which the endorsement is attached, this Policy does not insure against loss, damage, costs or expenses in connection with any kind or description of seepage and/or pollution and/or contamination, direct or indirect, arising from any cause whatsoever. Nevertheless if fire; is not excluded from this Policy and a fire arises directly or indirectly from seepage and/or pollution and/or contamination, any loss or damage covered under this Policy arising directly from that fire shall, (subject to the terms, conditions and limitations of the Policy) be covered. However, if the covered property is the subject of direct physical loss or damage for which the Insured has paid or agreed to pay, then this Policy (subject to its terms, conditions and limitations) insures against direct physical loss or damage to the property covered hereunder caused by resulting seepage and/or pollution and/or contamination. The Insured shall give notice to the Insurer of intent to claim NO LATER THAN TWELVE (12) MONTHS AFTER THE DATE OF THE ORIGINAL PHYSICAL LOSS OR DAMAGE. DEBRIS REMOVAL AND COST OF CLEAN UP EXTENSION: ' Notwithstanding the provisions of the preceding exclusions in this endorsement or any provision respecting seepage and/or pollution and/or contamination, and/or debris removal and/or cost of clean up in the Policy to which this endorsement is attached, in the event of direct physical loss or damage to the property covered hereunder, this Policy (subject otherwise to its terms, conditions and limitations, including but not limited to any applicable deductible) also insures, within the sum covered: (a) expenses reasonably incurred in removal of debris of the property hereunder destroyed or damaged from the premises of the Insured; and/or Page 66 ENDORSEMENT NO. 3 PAGE 2 OF 2 SEEPAGE AND/OR POLLUTION AND/OR CONTAMINATION EXCLUSION; DEBRIS REMOVAL AND COST OF CLEAN UP EXTENSION; AUTHORITIES EXCLUSION (bi cost of clean up at the premises of the Insured made necessary as a result of such direct physical loss or damage; P' OVIDED that this Policy does not insure against the costs of decontamination or r; oval of water, soil or any other substance on or under such premises. It is a condition precedent to recovery under this extension that the Insurer shall hive paid or agreed to pay for direct physical loss or damage to the poperty covered hereunder unless such payment is precluded solely by the operation of any d-ductible and that the Insured shall give notice to the Insurer of intent to claim for cost of removal of debris or cost of clean up NO LATER THAN TWELVE (12) ONTHS AFTER THE DATE OF SUCH PHYSICAL LOSS OR DAMAGE. THORITIES EXCLUSION: is Policy does not cover expenses, fines, penalties or cost incurred or sustained bb the Insured or imposed on the Insured at the order of any Government Agency, •court of other Authority, in connection with any kind or description of environmental i pairment including seepage or pollution or contamination of any cause. othing in this endorsement shall override any radioactive contamination exclusion cause in the Policy to which this endorsement is attached. ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED. Page 67 colo'/nn1 RAA Tca ENDORSEMENT NO. 4 MINIMUM EARNED ASSESSMENTS It is understood and agreed that this Policy is subject to 25% minimum earned assessments regardless of time in force. ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED.. Page 68 PEPIP2001 MASTER ENDORSEMENT NO. 5 PAGE 1 OF 2 LENDER'S LOSS PAYABLE ENDORSEMENT The following provisions (or equivalent) apply as required by "mortgages" and "lenders" to horn certificates of coverage have been issued. Loss or damage, if any, under this policy, shall be paid to the Payee named on the first page of this policy, its successors and assigns,,hereinafter referred to as "the Lender", in whatev+r form or capacity its interests may appear and whether said interest be vested in said Lender in its individual or in its disclosed or undisclosed fiduciary or representative capacity, or otherwise, or vested in a nominee or trustee of said Lender. 1. The insurance under this policy, or any rider or endorsement attached thereto, as to the interest only of the Lender, its successors and assigns, shall not be invalidated nor suspended: (�a) by any error, omission, or change respecting the ownership, description, possession, or location of the subject of the insurance or the interest therein, or the title thereto; (b) by the commencement of foreclosure proceedings or the giving of notice of sale of any of the property covered by this policy by virtue of any mortgage or trust deed; (c) by any breach of warranty, act, omission, neglect, or non-compliance with any of the provisions of this policy, including any and all riders now or hereafter attached thereto, by the named insured, the borrower, mortgagor, trustor,1 vendee, owner, tenant, warehouseman, custodian, occupant, or by the agents of either or any f them or by the happening of any event permitted by them or either of them, or their agents, or which they failed to prevent, whether occurring before or after the attachment of this endorsement, or whether before or after a loss, which under the provisions of this policy of insurance or of any rider or endorsement attached thereto would invalidate or suspend the insurance as to the named insured, excluding herefrom, however, any acts or omissions of the Lender while exercising active control and management of the property. �. In the event of failure of the insured to pay any premium or additional premium which shall be or become due under the terms of this policy or on account of any change in occupancy or increase in hazard not permitted by this policy, this Insurer agrees to give written notice to the bender of such non-payment of premium after sixty (60) days from and within one hundred and twenty (120) days after due date of such premium and it is a condition of the continuance of the rights of the Lender hereunder that the Lender when so notified in writing by this Insurer of the failure of the insured to pay such premium shall pay or cause to be paid the premium due within ten (10) days following receipt of the Insurer's demand in writing therefor. If the Lender shall decline to pay said premium or additional premium, the rights of the Lender under this Lender's Loss Payable Endorsement shall not be terminated before ten (10) days after receipt of said written notice by the Lender. . Whenever this Insurer shall pay to the Lender any sum for loss or damage under this policy and shall claim that as to the insured no liability therefor exists, this Insurer, at its option, may pay to the Lender the whole principal sum and interest and other indebtedness due or to become due from the insured, whether secured or unsecured, (with refund of all interest not accrue4 and this Insurer, to the extent of such payment, shall thereupon receive a full assignment and transfer, without recourse, of the debt and all rights and securities held as collateral thereto. •. If there be any-other insurance upon the within described property, this Insurer shall be liable under this policy as to the Lender for the proportion of such loss or damage that the sum hereby insured bears to the entire insurance of similar character on said property under policies held by, payable to and expressly consented to by the Lender. Any Contribution Clause included in any Fallen Building Clause Waiver or any Extended Coverage Endorsement attached to this contract of insurance is hereby nullified, and also any Contribution Clause in any other endorsement or rider attached to this contract of insurance is hereby nullified except Contribution Clauses for the compliance with which the insured has received reduction in the rate charged or ha received extension of the coverage to include hazards other than fire and compliance with such Contribution Clause is made a part of the consideration for insuring such other hazards. The Lender upon the payment to it of the full amount of its claim, will subrogate this Insurer (pro rata with all other insurers contributing to said payment) to all of the Lender's rights of contribution under said other insurance. Page 69 PEPIP2001 MASTER ENDORSEMENT NO. 5 PAGE 2 OF 2 6. This Insurer reserves the right to cancel this policy at any time, as provided by its terms, but in such case this policy shall continue in force for the benefit of the Lender for ten (10) days after written notice of such cancellation is received by the Lender and shall then cease. 7. This policy shall remain in full force and effect as to the interest of the Lender for a period of ten (10) days after its expiration unless an acceptable policy in renewal thereof with loss thereunder payable to the Lender in accordance with the terms of this Lender's Loss Payable Endorsement, shall have been issued by some insurance company and accepted by the Lender. 8. Should legal title to and beneficial ownership of any of the property covered under this policy become vested in the Lender or its agents, insurance under this policy shall continue for the term thereof for the benefit of the Lender but, in such event, any privileges granted by this Lender's Loss Payable Endorsement which are not also granted the insured under the terms and conditions of this policy and/or under other riders or endorsements attached thereto shall not apply to the insurance hereunder as respects such property. 9. All notices herein provided to be give by the Insurer to the Lender in connection with this policy and this Lender's Loss Payable Endorsement shall be mailed to or delivered to the Lender at its office or branch described on the first page of the policy. Approved: Board of Fire Underwriters of the Pacific, California Bankers' Association Committee on Insurance. ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED. Page 70 ncninnnn4 "11 cTco ENDORSEMENT NO. 6 SEVERABILITY NOTICE thhe subscribing Reinsurers' obligations under contracts of Reinsurance to which ey subscribe are several, not joint, and are limited solely to the extent of their i dividual subscriptions. The subscribing Reinsurers are not responsible for the subscription of any co-subscribing Reinsurer who for any reason does not satisfy all .r part of its obligations. ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED. • Page 71 ENDORSEMENT NO. 7 • ACCIDENTAL CONTAMINATION EXTENSION In consideration of the premium charged and notwithstanding the terms, conditions and stipulations contained in the Policy (except as regards the Policy 'term and Limits of Liability), including all other endorsements attached thereto, (especially Endorsement No 3'1 Seepage and/or Pollution and/or Contamination Exclusion; Debris And Cost of Clean Up Extension; Authorities Exclusion to the extent that it is in conflict herewith), to which this endorsement is attached this Policy is hereby extended to cover Ousiness Interruption and Property Damage loss from accidental contamination from any source to Insured Property, as covered by this Policy, including expenses: necessarily incurred to clean up, remove and dispose of contaminated substances so as to restore the Insured Property as covered by this Policy to the same condition as existed prior to loss, all as a result of accidental contamination, discharge or dispersal which is itself caused by fire, lightning, impact from aircraft, explosion, riot, civil commotion, smoke, collapse, vehicles, windstorm, hail, vandalism, malicious mischief or leakage and accidental discharge from automatic fire protective systems whereupon this extension shall provide coverage up to full limit of liability provided by this Policy. For the purposes of this extension the term "Insured Property" as covered by this Policy, is held to include Land (and Land Values) on which Covered Property is located, as part of the below stated sublimit, whether or not the same are excluded by this Policy. It being specifically understood and agreed that this extension shall not afford coverage,to land, (including land on which Covered Property is located), and land Values for loss in excess of the $500,000 sublimit liability. It is further understood and agreed that this extension shall not override anything contained in Asbestos Clean Up and Removal in this Policy. The sublimit of liability stated above forms part of the limit(s) of liability provided by this Policy and does not increase it (them). ALL OTHER TERMS AND CONDITIONS REMAIN THE UNCHANGED Page 72 PEPIP2001 MASTER ENDORSEMENT NO. 8 It its hereby understood and agreed that the interest of Additional Insureds and/or Loss Payees is automatically included, as per Schedule on File with Robert F. Driver A :sociates. ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED. Page 73 IPEPIP2001 MASTER ENDORSEMENT NO. 9 11, EXCLUDED PERILS EARTHQUAKE EXCLUSION It is hereby understood and agreed that as respects Insureds where Optional JCoyerage "A" is not shown as applicable on the Optional Coverage Participation'List, 'the'following Exclusion is added to the Policy: Any earth movement, including, but not limited to earthquake, landslide or earth ;sinking, earth rising 'or shifting (this exclusion shall not apply to loss or damage by ensuing fire or explosion or any other perils insured under this Policy). As respects those Insureds where Optional Coverage "A" is shown as applicable, Ithell terms and conditions of this endorsement are not applicable, but only as respects locations specifically declared and for which a premium has been charged. FLOOD EXCLUSION It is hereby understood and agreed that as respects Insureds where Optional (Coverage "E" or "F" is not shown as applicable on the Optional Coverage Participation List, the following Exclusion is added to the Policy: 'Flood, meaning a general condition of partial or complete inundation of normally dry ',land area from: a) overflow of inland or tidal water; b) unusual and rapid accumulation or run off of surface waters from any source. Flood shall also mean mudslide or mudflow, which is a river or flow of liquid mud caused by flooding as defined in a. or b. above. The definition of flood does not include ensuing loss or damage not otherwise excluded. --- As respects those Insureds where Optional Coverage "E" or "F" is shown as applicable, the terms and conditions of this endorsement are not applicable, but only as respects locations specifically declared and for which a premium has been charged. ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED. Page 74 PEPIP2001 MASTER ENDORSEMENT NO. 10 COUNTY OF LOS ANGELES ALL RISK LOSS LIMIT WORDING 1p the event of a loss involving one or more of the named insureds for perils other than Earthquake and Flood, it is understood and agreed that a $75,000,000 loss 11mit is preserved and will apply specifically to the County of Los Angeles. In the vent a loss for the County of Los Angeles exceeds their $75,000,000 limit, then the County of Los Angeles has the same rights to the $425,000,000 additional limits that apply to all other Insureds. ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED. Page 75 PEPIP2001 MASTER ENDORSEMENT NO. 11 COVERAGE LIMITED TO SPECIFIC LOCATIONS • Due to the followings entities desire and/or need to insure certain properties outside of the PEPIP Program, and/or not insure all properties altogether, it is understood and agreed that coverage is limited to specific locations or values per schedule on file with the underwriters for the following Insureds: A) City and County of San Francisco B) County of Los Angeles-LAC-CAL This clause is not intended to exclude newly acquired property that is similar in nature to property reflected in the existing schedules on file with the underwriter, and is reported as required by policy wording. ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED. Page 76 ENDORSEMENT NO. 12 PRIORITY OF PAYMENTS In the event of loss caused by or resulting from more than one peril or coverage, the I. lin it of liability of the primary/underlying coverage shall apply first to the peril(s) or c I'verage(s) not insured by this Policy and the remainder, if any, to the perils) or cverage(s) insured hereunder. Upon exhaustion of the limit of liability of the pr nary/underlying coverage, this Policy shall then be liable for loss uncollected from th peril(s) or coverage(s) insured hereunder, subject to the limit of liability and the of er terms and conditions as specified. ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED. Page 77 1,1 11 • ENDORSEMENT NO. 13 II 1 II 11, LEASEHOLD INTEREST ENDORSEMENT In ,the event of physical loss or damage of the type insured against by this Policy to 1, real property of the type insured this Policy which is leased by the Insured, this Policy 1iI is extended to cover:1 (1) If as a result of such loss or damage the property becomes wholly the lease agreement untenantable or unusable andrequires continuation of g the rent, the Insurer shall indemnify th e Insur ed payable for 111 the unexpired term of the lease; or exult of such loss or damage the roe becomes 1 artiall 2 If as a r g property►ty ,partially nantable or unusable and the lease a reement requires uires continuation of g q Insured for the proportion of'the rent the rent, the Insurer shall indemnify the p p applicable thereto; or result of such loss or damage th e lease is cancelled bythe lessor (3) If as a g , pursuant to the lease agreement or operation of law, the Insurer shall 9by P I indemnifythe Insured for its Lease Interest for the first three months following 9 such loss or damage and for its Net Lease Interest for the remaining unexpired term P of the lease; F , il rovided, however, that the Insurer shall not be liable for any increase in the amount p 11, recoverable hereunder resulting from the suspension, lapse or cancellatilon of any Il lic'ense, or from the Insured exercising an option to cancel the lease; or from,any,act or omission of the Insured which constitutes a default under the lease;' and provided further that the Insured shall use any suitable property or service owned or,controlled 1, by the Insured or obtainable from another source to reduce the loss hereunder. The following definitions shall apply to this coverage: 1 (1) Lease Interest means the excess rent paid for the same or similar replacement property .c over actual rent payable plus ash bonuses or advance P rentpaid (includinganymaintenance o r operating charges) for each month P 9 9 duringthe u' expired term of the Insured's lease. Lease Interest means that sum whichplaced at 8/o interest compounded ounded 11, 2 Net p annually11, would equal the Lease Interest (les s anyamounts otherwise'payable q P Y hereunder). • I ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED. 11 Page 78 DcolO'lnM nn A CTFO 11 I 1 ENDORSEMENT NO. 14 REVENUE INTERRUPTION PROTECTION (EXCLUDING EARTHQUAKE AND FLOOD) 1 Type of revenue to be covered: XX Sales Tax, XX Property Tax, XX Other - whenever the word "Revenue" appears in this form, it shall mean only such revenue as specified. 2 Except as hereinafter or heretofore excluded, this Policy covers only agairst loss resulting directly from necessary interruption of revenue as specified above collected by or due to the Insured caused by damage to or destruction by a peril not excluded of any of the real or personal property insured by this Policy and referred to any contribution property(ies) and which is not operated by the Insured against all risks of direct physical loss or damage by a peril not excluded by this Policy during the term of this Policy, which wholly or partially prevents the generation of revenue for the account of the Insured. I In the event of such damage or destruction, the Insurer shall be liable, with limitations as indicated, if the following conditions (A) and (B) are both met: (A) The total revenue is reduced to less than 97.5% of the insured's anticipated revenue had no loss occurred. (B) The Insurer shall be liable for the actual loss sustained by the insured from direct damage by perils insured to one or more contributing properties which results in the interruption of revenue for only the length of time as would be required with exercise of due diligence and dispatch to rebuild, replace or repair the contributing property commencing with the date of damage to the contributing property, but not limited by the expiration date of this Policy. Such loss recovery after deductible shall be limited to whichever is the least of: 1. The limit insured on the Policy; 2. The actual loss sustained: 3. The difference in amount between 97.5% of the anticipated revenue and the actual total revenue after the loss. ) DEDUCTIBLE: Each loss or series of losses arising out of one event at each location shall be adjusted separately and from the aggregate amount of all such losses 2.50% of the annual revenue value shall be deducted. ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED. Page 79 Endorsement No. 15 LOSS PAYMENT BASISNALUATION ; i Applicable to NPX members only (1) It is hereby understood and agreed that the Insured is a separate public entity created by certain local public entities (hereafter called Insured ) subscribing to a ' joint exercise of powers agreement. 2 It is further Understood and agreed that reported losses over the described deductibles shall be adjusted with and payable to the Insured including;the interest of mortgagees and/or additional interests. agreed that as respects above #1, the inclusion of (3) It is further understood and p more than one Insured shall not operate to increase the Insurer's limit of liability as stated herein. (4) It is further understood and agreed that as respects the limits of liability under this Policy, in the event of a loss or accumulation of losses whereby the amount of loss exceeds the limits of the combined policies, the payments to individual will be made on a proportional basis. This proportion shall be determined as the ratio of 11 the total limits available divided bythe total amount that wo uld have been payable 1 p Y if no exhaustion of limits has occurred. This provision applies to exhaustion of limits on a per occurrence and as respects earthquake shock and flood, on an annual aggregate re ate basis. lil ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED. Page 80 nrnannnn...n cTr_n ENDORSEMENT NO. 16 ELECTRONIC DATE RECOGNITION EXCLUSION —Wording "A" Words that appear in quotation marks in this endorsement have special meaning. Refer o Section C. - DEFINITIONS. A. . EXCLUSION Notwithstanding any other terms or conditions, this Policy, including any otherl endorsements which may be attached to it, does not insure against any loss, damage, cost, claim or expense directly or indirectly arising out of or relating to: 1. The failure of any "system", whether the property of the insured or others, to "recognize" any "data" involving any "date change"; or, 2. Any "modification" of any "system", whether the property of the Insured for others, to permit such "system" to "recognize" any "data" involving any "date change". Destruction, distortion or corruption of any computer data, coding or software, which is caused by the failure of any "system" to "recognize" any "data" involving any "date change" is not physical loss or damage insured against under this policy. This exclusion shall apply regardless of any other cause or event that contributes concurrently or in any sequence to the loss, damage, cost, claim or expense. However, if physical loss or damage arising out of the perils of Fire, Explosion, Implosion, Smoke, Collapse, Water damage, Sprinkler leakage, Riot and Civil Commotion, Contamination, Aircraft and Vehicles, Theft, Vandalism, Freeze, Flooding, Windstorm or Lightning as covered by this Policy results, then subject to all its terms and conditions, this Policy shall be liable only for such resulting loss or damage. Each occursI ence of resulting physical loss or damage shall be adjusted separately, and each occurrence shall be subject to the provisions regarding sublimits and deductibles specified elsewhere in this policy. In the event physical loss or damage not otherwise excluded by this Policy results to any "system", this Policy, including any other endorsements which may be attached to it, does not insure against any loss, damage, cost, claim or expense, whether preventative, remedial or otherwise, arising out of or relating to any "modification" of any "system", whether the property of the Insured or others, to permit such "system" to "recognize" any "data" involving any "date change". B. This policy does not insure against any preventive or remedial costs to repair or modify any items in A.1. and A.2. above to correct any actual or potential deficiencies or change any features of logic or operation. This policy does not insure against any expense incurred by the insured or otherls in the defense, safeguarding, protecting or recovering of property whether before or after loss due to any actual or potential loss excluded in Section A. above - C. DEFINITIONS 1. "System" means any computer system, hardware, firmware, program, or software or any microchip, integrated circuit, or similar device in computer equipment or non- computer equipment. 2. "Recognize" means to recognize, interpret, calculate, compare, differentiate, distinguish, accept, sequence or process. 3. "Data" means any data, instruction or information. 4. "Date Change" means the date change to the year 2000, the date change in any leap year or any other date change. 5. "Modification" means any modification, change, addition, alteration or orrection. Nothing herein contained shall be held to vary,alter,waive or extend any of the terms,conditions,or limitations of the policy to which this endorsement is attached other than as above stated. ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED. Page 81 PEPIP2001 MASTER Endorsement No. 16 ELECTRONIC DATE RECOGNITION EXCLUSION -"Wording 137 . (All Risks Write Back) ELECTRONIC DATE RECOGNITION EXCLUSION Notwithstanding any provision of this Policy which may appear to the contrary, this Policy does not insure any loss, damage, cost, claim or expense, whether preventative, remedial or otherwise, directly or indirectly arising out of or relating to: a) the recognition, interpretation, calculation, comparison, differentiation, sequencing or processing of data involving one or more dates or times, including the Year 2000, by any computer system, hardware, program or software, or any microchip, integrated circuit or similar device in computer equipment or non-computer equipment, whether the property of the Insured or not; or b)' any change, alteration, correction or modification involving one or noire; dates or times, including the Year 2000, to any such computer system, hardware,; program or software, or any microchip, integrated circuit or similar device in computer equipment or non-computer equipment, whether the property of the Insured or not. Except as provided in the next paragraph, this Electronic Date Recognition Clause shall apply regardless of any other cause or event that contributes concurrently or in any sequence to the loss, damage, cost, claim or expense. If direct physical loss or damage not otherwise excluded by this Policy results, then subject to all its terms and conditions, this Policy shall be liable only for such resulting loss or damage. Such resulting loss or damage shall not include physical loss or damage to data resulting directly from a) or b) above, nor the cost, claim or expense, whether preventative, remedial, or otherwise,' arising out of or relating to any change, alteration,; correction or modification relating to the ability of any damaged computer system, hardware, program or software, or any microchip, integrated circuit or similar device in computer equipment or non- computer equipment to'' recognize, interpret, calculate, compare, differentiate sequence or process any data involving one or more dates or times, including the Year 2000. ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED. Page 82 DCDI0ff1/1l IRA CtCo Endorsement No. 16-A ELECTRONIC DATE RECOGNITION EXCLUSION It is ereby understood and agreed that all members and named insureds have coverage as desc bed and defined in Endorsement No. •16 — Electronic Date Recognition Exclusion- Wor•ings A It is further understood and agreed that as respects members and named insureds listed beloW, Electronic Date Recognition Exclusion — Wordings A is hereby deleted and replaced with Endorsement no. 16- Electronic Date Recognition Exclusion — Wordings B (All Risks Writ:.'Back). This hange applies to the following members: (List association/members /insureds here that have complete the Questionnaire last year) ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED. Page 83 Gcolfffl 1 taacmco ENDORSEMENT NO. 17 NAMED INSURED-MEMBER SCHEDULE I i • ' The members of the (association/pool) are: (LIST NAMED INSUREDS/ MEMBERS HERE) (association/pool) shall be deemed the sole agent of each and every Association/Pool member for the purpose of: (1) Giving notice of cancellation, (2)'1 Giving instructions for changes in the Policy and accepting changes in this Policy, and (3) The payment of assessments/premiums or receipt of return assessments/premiums. ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED. Page 84 PEPIP2001 MASTER ENDORSEMENT NO. 18 • AUTOMATIC ACQUISITION CLAUSE The 0 rovisions of this automatic acquisition clause do not increase 1) the occurrence limit(s) of liabili , 2) the sub-limit(s) of liability or 3) the aggregate limit(s) provisions of this coverage. 1. ' Existing Named Insured Members Any named insured member at coverage inception may increase or decrease total insured values for all coverage's and all perils (EXCLUDING CALIFORNIA EARTHQUAKE) purchased at inception subject to a maximum change in values not exceeding $ Per Declaration Page at any one time. The reporting of the changes to underwriters and the applicable additional or return premium will be provided to/from the underwriters: o At expiration with additional/return premium applicable on an ensuing year basis Changes in total insured values exceeding the stated limitation will be reported Immediately to underwriters for acceptance and additional/return premium agreement. 2. Special Provisions Applicable to California Earthquake Coverage Any named insured may increase or decrease total insured values as respects California earthquake coverage subject to a maximum change in values not exceeding $ Per Declaration Page at any one time. The reporting of the changes to underwriters and the applicable additional or return premium will be provided to/from the underwriters: o At expiration with additional/return premium applicable on an ensuing year basis Changes in total insured values exceeding the stated limitation will be reported immediately to underwriters for acceptance and additional/return premium agreement. 3. Provisions Applicable to new/deleted Named Insured Members The "First Named Insured" may add/delete named insured members to the coy rage herein provided subject to a maximum change in total insured values not -exceeding $ Per Declaration Page for any one named insured member. The reporting of new/deleted named insured members to underwriters and the applicable additional or return premium will be provided to/from the underwriters: ❑ At expiration with additional/return premium applicable on an ensuing year basis New/deleted named insured members with total insured values exceeding the stated limitation will be reported immediately to underwriters for acceptance and additional/return premium agreement. Page 85 PEPIP20a1 MASTER 4. „ Provisions Applicable to Optional Coverage's Any named insured member at coverage inception (or added as per provisions in item 3) may effect optional coverage's of 1) Licensed Vehicles, 2) Contractor's equipment / Unlicensed Vehicles or 3) Scheduled Fine Arts subject to a maximum in total insured values not exceeding $100,000 per optional coverage at any one time. The reporting of the changes to underwriters and the applicable additional or return premium will be provided to/from the underwriters: o At expiration with additional/return premium applicable on an ensuing year basis Changes in total insured values exceeding the stated limitation will be reported Immediately to underwriters for acceptance and additional/return premium agreement. UPDATED: 6-3-00 ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED Page 86 PEPIP2001 MASTER ne nTurur itrn,u.nnnwnoour,nnl,V`MOnn4,DCDIO Inn,I4AQTCn I.'.... ENDORSEMENT NO. 19 Page 1 of 3 FORM NO. CP 12 18 10 91 COMMERCIAL PROPERTY THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. LOSS PAYABLE PROVISIONS This aIndorsement modified insurance provided under the following: BUILDING AND PERSONAL PROPERTY COVERAGE FORM BUILDERS' RISK COVERAGE FORM CONDOMINIUM ASSOCIATION COVERAGE FORM CONDOMINIUM COMMERCIAL UNIT-OWNERS COVERAGE FORM STANDARD PROPERTY POLICY SCHEDULE Provisions Applicable Loss Lender's Contract Payable Loss Payable Of Sale Prem. Bldg. Description Loss Payee No. No. of Property (Name & Address) A. When this endorsement is attached to the STANDARD PROPERTY POLICY CP 00 99 the term Coverage Part in this endorsement is replaced by the term Policy. The fallowing is added to the LOSS PAYMENT Loss Condition, as indicated in the Declarations or by an "X 1 in the Schedule: B. LOSS PAYABLE For Covered Property in which both you and a Loss Payee shown in the Schedule or in the Declarations have an insurable interest, we will: 1. Adjust losses with you; and . Pay any claim for loss or damage jointly to you and the Loss Payee, as irterests may appear. C. ENDER'S LOSS PAYABLE . The Loss Payee shown in the Schedule or in the Declarations is a creditor, including a mortgageholder or trustee, whose interest in Covered Property is established by such written instruments as: a. Warehouse receipts; b. A contract for deed; c. Bills of lading; d. Financing statements; or e. Mortgages, deeds of trust, or security agreements. CP 12 18 10 91 Copyright, ISO Commercial Risk Services, Inc., 1990 Page 87 PEPIP200r1_MASTER ENDORSEMENT NO. 19 Page 2of3 , FORM NO. CP 12 18 10 91 2. For Covered Property in which both you and a Loss Payee have an insurable interest: a. We will pay for covered loss or damage to each Loss Payee in their order of precedence, as interests may appear. b. The Loss Payee has the right to receive loss payment even if the Loss Payee has started foreclosure or similar action on the Covered Property. c. If we deny you claim because of your acts or because you have failed to comply with • the terms of the Coverage part, the Loss Payee will still have the right tot receive loss payment if the Loss Payee: (1) Pays any premium due under this Coverage Part at our request if you have failed to do so; (2) Submits a signed, sworn proof of loss within 60 days after receiving notice from us of your failure to do so; and (3) Has notified us of any change in ownership, occupancy or substantial change in risk known to the Loss Payee. All of the terms of this Coverage Part will then apply directly to the Loss Payee. d. If we pay the Loss Payee for any loss or damage and deny payment to you because of your acts or because you have failed to comply with the terms of this Coverage Part: (1) The Loss Payee's rights will be transferred to us to the extent of the amount we pay; and • (2) The Loss Payee's rights to recover the full amount of the Loss Payee's'claim will not be impaired. At our option, we may pay to the Loss Payee the whole principal on the debt plus any accrued interest. In this event, you will pay your remaining debt to us. 3. If we cancel this policy, we will give written notice to the Loss Payee at least: a. 10 days before the effective date of cancellation if we cancel for your nonpayment of premium; on b. 30 days before the effective date of cancellation if we cancel for any other; reason. 4. If we elect not to renew this policy, we will give written notice to the Loss Payee at least 10 • days before theexpiration date of this policy. CP12181091 Copyright, ISO Commercial Risk Services, Inc., 1990 ill Page 88 PEPIP2001 MASTER ENDORSEMENT NO. 19 Page 3 of 3 FORM NO. CP 12 18 10 91 D. ONTRACT OF SALE . The Loss Payee shown in the Schedule or in the Declarations is a person or organization you have entered a contract with for the sale of Covered Property. For Covered Property in which both you and the Loss Payee have an insurable interest we will: a. Adjust losses with you; and b. Pay any claim for loss or damage jointly to you and the Loss Payee, as interests may appear. . The following is added to the OTHER INSURANCE Condition: For Covered Property that is the subject of a contract of sale, the word "you" includes the Loss Payee. CP 12 18 10 91 Copyright, ISO Commercial Risk Services, Inc., 1990 ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED. Page 89 PEPIP2111 MASTER ENDORSEMENT NO. 20 TRANSIT It is hereby understood and agreed that with effect from inception coverage for Transit is subject to a sublimit of USD10,000,000 per occurrence which shall apply combined over this and all other layers of insurance. • • ALL OTHER TERMS AND CONDITIONS REMAIN UNALTERED Page 90 PEPIP2001 MASTER ENDORSEMENT NO. 21 ELECTRONIC DATA ENDORSEMENT A 1. EIe tronic Data Exclusion No ithstanding any provision to the contrary within the Policy or any endorsement thereto, it is and erstood and agreed as follows:- a) This Policy does not insure, loss, damage, destruction, distortion, erasure, corruption or alteration of ELECTRONIC DATA from any cause whatsoever (including but not limited to COMPUTER VIRUS) or loss of use, reduction in functionality, cost, expense of whatsoever nature resulting therefrom, regardless of any other cause or event contributing concurrently or in any other sequence to the loss. ELECTRONIC DATA means facts, concepts and information converted to a form useable for communications, interpretation or processing by electronic and electromechanical data processing or electronically controlled equipment and includes programmes, software, and other coded instructions for the processing and manipulation of data or the direction and manipulation of such equipment. COMPUTER VIRUS means a set of corrupting, harmful or otherwise unauthorised instructions or code including a set of maliciously introduced unauthorised instructions or code, programmatic or otherwise, that propagate themselves through a computer system or network of whatsoever nature. COMPUTER VIRUS includes but is not limited to 'Trojan Horses', 'worms' and 'time or logic bombs'. b) However, in the event that a peril listed below results from any of the matters described in paragraph a) above, this Policy, subject to all its terms, conditions and exclusions will cover physical damage occurring during the Policy period to property insured by this Policy directly caused by such listed peril. Listed Perils Fire Explosion 2. Elec Ironic Data Processing Media Valuation No ithstanding any provision to the contrary within the Policy or any endorsement thereto, it is und=rstood and agreed as follows:- - Sho 'Id electronic data processing media insured by this Policy suffer physical los or damage insu -d by this Policy, then the basis of valuation shall be the cost to repair, replace ore restore such med : to the condition that existed immediately prior to such loss or damage, including the cost of repra'ducing any ELECTRONIC DATA contained thereon, providing such media is repaired, replaced or r--tored. Such cost of reproduction shall include all reasonable and necessary amounts, not to exce-d USD10,000,000 any one loss, incurred by the Assured in recreating, gatheringl and asset bling such ELECTRONIC DATA. If the media is not repaired, replaced or restored the basis of valuation shall be the cost of the blank media. However this Policy does not insure any amount pert-lining to the value of such ELECTRONIC DATA to the Assured or any other party even if such ELECTRONIC DATA cannot be recreated, gathered or assembled. ALL OTHER TERMS AND CONDITIONS REMAIN UNALTERED Page 91 PEPIP20.0.MASTER,,.,,..,..,.,....,.. ifs II I ill Lloyd' s l � Proportional it I Reinsurance Certificate *-'11.314 wiet•�.s•1tA Ill Lloyd's London 1 Lime Street, London EC3M 7HA The Reinsured is requested to read this Reinsurance and, if it is incorrect,return it immediately to your Broker for alteration. In all communications the Certificate Number appearing in line one of the Schedule should be quoted � l � LTL/J2 I it l � � l I 'I I f1D/T/Il//`I A/I O\/I T VAI,AIA1A K WASHINGTON CITIES INSURANCE AUTHORITY, (WCIA) PEPIP USA PR OPERTY ROPERTY POLICIES EFFECTIVE F CTIVE SEPTEIVIBER 1, 20 00 TO SEPTEMBER 1, 2001 LAYER A REINSURING NG COMPANIES � IEPA N S a) SWISS REINSURANCE b) XL EUROPE INSURANCE dirlA41)174 .. .* • , V • ASSOCIATES Certificate of Insurance arranged by L- JLT RISK SOLUTIONS Limited Proportional Reinsurance Certificate Effected through JLT Risk Solutions Limited 6 Crutched Friars London EC3N 2PH This is to Certify that in accordance with the authorisation granted under the Contract (the number of which is specified in the Schedule) to the undersigned by certain Reinsurance Companies (hereinafter referred to as the "Underwriters"), whose names and the proportion underwritten by them are as attached hereto, and can also be ascertained by reference to the said Contract, and in consideration of the payment of the premium specified herein, the said Underwriters are hereby bound, severally and not jointly, their Executors and Administrators, to insure in accordance with the terms and conditions contained herein or endorsed hereon. The Reinsured, unless otherwise stated herein: (i) shall retain during the period of this Certificate at least the retention(s), subject to any proportional and/or excess of loss treaty reinsurance, on the identical subject matter and perils and in identically the same proportion(s) as stated herein. In the event of the retention(s) and/or proportion(s) being less, the Underwriters' liability will be correspondingly proportionately reduced. (ii) warrants that the premium paid to the Underwriters for this Certificate is calculated at the same gross rate as the original policy for the identical subject matter and perils and in the proportions reinsured. In the event of inconsistencies between the original policy and this Certificate, this Certificate shall prevail. If the Reinsured shall make any claim knowing the same to be false or fraudulent, as regards amount or otherwise, this Certificate shall become void and all claims hereunder shall be forfeited. In witness whereof this Certificate has been signed at the place stated and on the date specified in the Schedule by JLT Risk Solutions Limited LTL/J2 amended - Schedule Certificate No: 901/LU0029117 Contract Number: 6165/00 The Reinsured: WASHINGTON CITIES INSURANCE AUTHORITY (WCIA) The Original Insured: Members of Washington Cities Insurance Authority(Named Insured-Member as per the coverage Schedule agreed by Underwriters and contained in the attached original wording) The Premium: USD 165.648.42 part of USD 338,058.00 part of USD 450.744.00 The Retention(s): NIL The Sum Reinsured hereunder: 75.00%of the Limits of Liability as more fully set forth in the attached original wording The Period of Reinsurance: From I September 2000 to 1 September 2001 both days at 12.01am Local Standard Time and for such further period or periods as may be mutually agreed upon. The Subject Matter and Perils Reinsured hereunder: This Certifi ate reinsures the Reinsured's interest in payments excluding without prejudice and ex-gratia payments made within the terms and conditions of the attached original wording for 75.00%on the identical subject matter and risk. In the event of inconsistencies between the attached original wording and the original wording issued to the Original Insured the attached original wording shall prevail Endorsements,if any: Service of Suit Clause naming:Mendes and Mount as attached Claims Control Clause as attached Lines Clause as attached Reinsurance Clause as attached Simultaneous Settlement Clause as attached Coverage not confined to locations as declared For and on behalf of JLT Risk Solutions Limited Authorised Signatory ~7 Dated in London,the /J/ ll LTL/J2 (Schedule)for attachment to LTL/J2 amended Attaching to and forming part of Certificate No. 901/LU0029117 Service of Suit Clause(U.S.A.). It is agreed that in the event of the failure of the Reinsuring Underwriters hereon to pay any amount claimed to be due hereunder,the Reinsuring Underwriters hereon, at the request of the Reinsured, will submit to the jurisdiction of a Court of competent jurisdiction within the United States. Nothing in this Clause constitutes or should be understood to constitute a waiver of Reinsuring Underwriters' rights to commence an action in any Court of competent jurisdiction in the United States,to remove an action to a United States District Court, or to seek a transfer of a case to another Court as permitted by the laws of the United States or of any State in the United States. It is further agreed that service of process in such suit may be made upon:- Messrs. Mendes and Mount(Attorneys),750 Seventh Avenue, New York, New York 10019-6829, USA. and that in any suit instituted against any one of them upon this contract, Reinsuring Underwriters will abide by the final decision of such Court or of any Appellate Court in the event of an appeal. The above-named are authorized and directed to accept service of process on behalf of Reinsuring Underwriters in any such suit and/or upon the request of the Reinsured to give a written undertaking to the Reinsured that they will enter a general appearance upon Reinsuring Underwriters'behalf in the event such a suit shall be instituted. Further, pursuant to any statute of any state,territory or district of the United States which makes provision therefor, Reinsuring Underwriters hereon hereby designate the Superintendent, Commissioner or Director of Insurance or other officer specified for that purpose in the statute, or his successor or successors in office, as their true and lawful attorney upon whom may be served any lawful process in any action, suit of proceeding instituted by or on behalf of the Reinsured or any beneficiary hereunder arising out of this contract of reinsurance,and hereby designate the above- named as the person to whom the said officer is authorized to mail such process or a true copy thereof. Claims Control Clause Notwithstanding anything contained herein to the contrary, it is a condition precedent to any liability under this Certificate that:- a) The Reinsured shall, upon knowledge of any loss or losses which may give rise to a claim against this Certificate, advise the Reinsuring Underwriters thereof as soon as possible. b) The Reinsured shall furnish the Reinsuring Underwriters with all information available respecting such loss or losses, and the Reinsuring Underwriters shall have the right to appoint adjusters, assessors and/or surveyors and to control all negotiations, adjustments and settlements in connection with such loss or losses. Lines Clause This Reinsurance, being signed for 49.000% of 100% of 75.00% reinsures only that proportion of any loss, whether totals or partial, including but not limited to that proportion of associated expenses, if any, to the extent and in the manner provided in this Reinsurance. The percentages signed and listed hereon are percentages of 100% of 75.00% of the amount(s) of Reinsurance stated herein. Reinsurance Clause Notwithstanding anything contained herein to the contrary this Reinsurance is subject to all terms, clauses and conditions as original except as provided for herein, and to follow in all respects the settlements or other payments of whatsoever nature made by the original Underwriters arising out of and in connection with the original insurance and to bear its proportion of any expenses incurred whether legal or otherwise in the investigation and defence of any claim hereunder. Simultaneous Settlement Clause In the event of a claim under the original policy Reinsuring Underwriters agree that, any payment hereon shall take place at the same time as settlement or advance of funds under the said original policy. SEVERAL LIABILITY NOTICE II The subscribing reinsurers' obligations under contracts of reinsurance to which they subscribe are several and not joint and are limited solely to the extent of their individual subscriptions. The subscribing reinsurers are not responsible for the subscription of any co-subscribing reinsurer who for any reason does not satisfy all or part of its obligations. 08/94 LSW1001 (Reinsurance) Attaching to and forming part of Certificate No. 901/LU0029117 Schedule of Reinsurance Companies Percentage Companies Reference 15.000% Munchener Ruckversicherungs as per fax dated 17 April 2000 Gesellschaft 17.333% Swiss Reinsurance Company as per fax dated 27 April 2000 16.667% XL Europe Insurance as per fax dated 5 May 2000 and E-mail dated 28 April 2000 49.000% of 100% of 75.00% I I DECLARATIONS PAGE 1) REINSURED: WASHINGTON CITIES INSURANCE AUTHORITY (WCIA) As more fully described in "NAME OF INSURED" (Section I, Item 1) and Named Insured Endorsement No. 17 2) MAILING ADDRESS: P. O. BOX 1165 RENTON, WA 98057 3) P®LICY PERIOD: SEPTEMBER 1, 2000 12:01AM TO SEPTEMBER 1, 2001 12:01AM 4) LIMIT AND SUB-LIMITS OF LIABILITY: 1. $'500,000,000 Per Occurrence: All Perils, Coverages and Insureds/Members combined, subject to sub-limits Sub-limits: A. $ 250,000,000 Per Occurrence and in the Annual Aggregate as respects - Flood -all coverages B. $ 100,000,000 Per Occurrence and in the Annual Aggregate as respects Earthquake Shock-all coverages C. $ 100,000,000 Combined Business Interruption, Extra Expense, Rental Income and Tax Interruption D $ 25,000,000 Miscellaneous Unnamed Locations and automatic acquisition as respects existing and new members as per endorsement No. 18 (including earthquake) No new members for only automobile coverage E. $ 25,000,000 Landscaping, tees, sand traps, greens and athletic fields F. $ 25,000,000 Errors & Omissions G. $ 25,000,000 Course Of Construction (including new for project values up to $25,000,000) H. $ 1,000,000 Money & Securities I. $ 10,000,000 Unscheduled Fine Arts J. $ 500,000 Accidental Contamination K. $ [1,000,000 Tunnels, bridges, dams, catwalks (except those not for public use), roadways, highways, streets, sidewalks, culverts, street lights and traffic signals unless a specific value has been declared L. $ 100,000,000 Demolition and Increased Cost of Construction due to the enforcement of building codes $ 25,000,000 Transit $ I1,000,000 Animals; except $100,000 Specially Trained Animals $ 1,000,000 Watercraft under 27 feet or less unless scheduled $ 50,000 Newly Acquired Vehicles (current members with auto coverage only) $ Not covered Replacement power extra expense at scheduled utility locations $ I5,000,000 Off premises services interruption including extra expense resulting from a covered peril at non-owned/operated locations $ Not Covered Contingent business interruption resulting from a covered peril at non owned/operated power generating facilities $Not applicable Per occurrence and in the annual aggregate: Earthquake shock on licensed vehicles, unlicensed vehicles, contractors equipment and fine arts combined for all insureds/members combined that do not purchase optional coverage Item-A): Earthquake Shock As More fully described in "LIMITS OF LIABILITY" (Section I — Item 4) W.C.I.A.-PEPIP 2000 Declaration Page 1 of 3 T\DEPT,USER\WDGS\WDGS\2000\WCIA 5) DEDUCTIBLE(S): A. "BASIC"ALL PERILS AND COVERAGES (EXCEPT SPECIFIED PERIL OR COVERAGE DEDUCTIBLE SHOWN BELOW): Deductible: $50,000 Per Occurrence B. SPECIFIED PERILS AND COVERAGE DEDUCTIBLES $ 100,000 Per Occurrence—Flood 2% Per Unit of Insurance (Real & Personal Property and Time Element) subject to $100,000 Minimum Per Occurrence- Earthquake Shock, except a. Vehicles or Contractors Equipment- $25,000 Per Vehicle/Item subject to $100,000 maximum as respects the perils of Earthquake or Flood b. Fine Arts - $50,000 Per Occurrence— Earthquake or Flood $ 50,000 Per Occurrence-vehicle property damage $ 50;000 Per Occurrence-vehicle collision damage $ 1;000 Per Occurrence- Specially Trained Animals $500;000 Per Occurrence -Tunnels, bridges, dams, catwalks (except those not for public use), roadways, highways, streets, sidewalks, culverts, street lights and traffic signals unless a specific value has been declared 24 hour waiting period —All Perils: Service Interruption $ 10,000 -Course of Construction—All Perils except Earthquake & Flood As more fully described in " DEDUCTIBLE PROVISIONS" (Section I— Item 5) 6) OPTIONAL COVERAGE PARTICIPATION It is understood and agreed that the certain Member Agencies participate in Optional Coverage on this Policy as set forth below: MEMBER AGENCY "BASIC" COVERAGE APPLICABLE DEDUCTIBLE OPTIONAL COVERAGES* All member per Named $ 50,000 A, B, C, E Insured Endorsement No. 17 *OPTIONAL COVERAGES IDENTIFICATION: A) Earthquake Shock B) Licensed Vehicles C) Contractors Equipment/Unlicensed Vehicles D) Scheduled Fine Arts E) Flood W.C.I.A.-PEPIP 2000 Declaration Page 2 of 3 T\DEPT USER\WDGS\WDGS\2000\WCIA • 7) SPECIAL PROVISIONS It is hereby understood and agreed that General Condition 10) Notice of Loss of the Wording attach hereto, is amended to read as follows: 8,0) NOTICE OF LOSS In the event of loss or damage insured against under this Policy, the Insured shall give 11 immediate notice thereof to ROBERT F. DRIVER ASSOCIATES, P.O. Box 6450, Newport Beach, CA 92658-6450 (949) 756-0271, FAX (949) 756-2713 of such loss. In the event of loss'or damage that falls within the reporting requirements, the,Insured will give immediate notice to the Insurer. For those losses reported to the Insurer, the Insured agrees to use Crawford-THG International Loss Adjusters, 19109 — 36th West, Suite 105, Lynnwood, Washington 98036, for the investigation and adjustment of the loss. The Insured will retain responsibility for the direction of the investigation and the overall adjustment of the loss. However, Insurers reserve the right to utilize other adjusting firms if and when they feel it necessary. • W.C.I.A.-PEPIP 2000 Declaration Page 3 of 3 T\DEPT USER,W DGS\W DGS\2000\W CIA WASHINGTON CITIES INSURANCE AUTHORITY (WCIA) PEPIP USA PROPERTY POLICIES EFFECTIVE SEPTEMBER 1, 2000 TO SEPTEMBER 1, 2001 LAYER B REINSURING COMPANIES a) MUNICH AMERICAN RISK PARTNERS/GREAT LAKES b) WELLINGTON SYNDICATE WELL2020 ' c) M.E. BROCKBANK SYNDICATE MDR 861/IVIEB 1209/NJM 588/MEB 1209 d) HARVEY BOWRING SYNDICATE WEH 362/HRB 823 e) S.J. CATLIN SYNDICATE 1003/2003 f) ACE GLOBAL MARKETS SYNDICATE AGM 2488 g) F.R. WHITE SYNDICATE 190 elAi77 • dr ro ASSOCIATES Certificate of Insurance arranged by L JLT RISK SOLUTIONS Limited • ‘1-jiiinioi�: Llo d s Proportional .._11;i1.. Reinsurance Certificate Effected through JLT Risk Solutions Limited 6 Crutched Friars London EC3N 2PH This is to Certify that in accordance with the authorisation granted under the Contract (the number of which is specified in the Schedule) to the undersigned by certain Underwriters at Lloyd's, whose definitive numbers and the proportion underwritten by them are as attached hereto and can also be ascertained by reference to the said Contract which bears the Seal of Lloyd's Policy Signing Office, and in consideration of the payment of the premium specified,herein, the said Underwriters are hereby bound, severally and not jointly, their Executors and Administrators, to insure in accordance with the terms and conditions contained herein or endorsed hereon. The Reinsured, unless otherwise stated herein: (i) shall retain during the period of this Certificate at least the retention(s), subject to any proportional and/or excess of loss treaty reinsurance, on the identical subject matter and perils and in identically the same proportion(s) as stated herein. In the event of the retention(s) and/or proportion(s) being less, the Underwriters' liability will be correspondingly proportionately reduced. (ii) warrants that the premium paid to the Underwriters for this Certificate is calculated at the same gross rate as the original policy for the identical subject matter and perils and in the proportions reinsured. In the event of inconsistencies between the original policy and this Certificate, this Certificate shall prevail. If the Reinsured shall make any claim knowing the same to be false or fraudulent, as regards amount or otherwise, this Certificate shall become void and all claims hereunder shall be forfeited. II 1 In Witness whereof this Certificate has been signed at the place stated and on the date specified in the Schedule by JLT Risk Solutions Limited LTL/J2 amended Schedule Certificate No: 901/LU0029117 Contract Number: 6165/00 The''Reinsured: WASHINGTON CITIES INSURANCE AUTHORITY(WCIA) The,Original Insured: Members of Washington Cities Insurance Authority(Named Insured-Member as per the coverage Schedule agreed by Underwriters and contained in the attached original wording) I II The Premium: USD 172.409.58 part of USD 338.058.00 part of USD 450.744.00 The Retention(s): NIL r , The Sum Reinsured hereunder: 75.00%of the Limits of Liability as more fully set forth in the attached original wording. The Period of Reinsurance: From I September 2000 to 1 September 2001 both days at 12.01am Local Standard Time and for such further period or periods as may be mutually agreed upon. 11 The Subject Matter and Perils Reinsured hereunder: This Certificate reinsures the Reinsured's interest in payments excluding without prejudice and ex-gratia payments made within the terms''and conditions of the attached original wording for 75.00%on the identical subject matter and risk. In the event of inconsistencies between the attached original wording and the original wording issued to the Original Insured the attached original wording shall prevail Endorsements, if any: Service of Suit Clause naming :Messrs.Mendes and Mount as attached Claim's Control Clause as attached Lines Clause as attached Reinsurance Clause as attached Simultaneous Settlement Clause as attached Coverage not confined to locations as,declared For and on behalf of JLT Risk Solutions Limited Authorised Signatory Dated in London.the `)� /, .��ri f 4' V LTL/J2 (Schedule)for attachment to LTL/J2 amended I ii Attaching to and forming part of Certificate No. 901/LU00291 17 Service of Suit Clause(U.S.A.) It is agreed that in the event of the failure of the Reinsuring Underwriters hereon to pay any amount claimed to be due hereunder,the Reinsuring Underwriters hereon, at the request of the Reinsured,will submit to the jurisdiction of a Court of competent jurisdiction within the United States. Nothing in this Clause constitutes or should be understood to constitute'a waiver of Reinsuring Underwriters'rights to commence an action in any Court of competent jurisdiction in the United States,to remove an action to a United States District Court, or to seek a transfer of a case to another Court as permitted by the laws of the United States or of any State in the United States. It is further agreed that service of process in such suit may be made,upon:- Messrs. Mendes and Mount(Attorneys),750 Seventh Avenue, New York, New York 10019-6829, USA and that in any suit instituted against any one'of them upon this contract, Reinsuring Underwriters will abide by the final,decision of such Court or of any Appellate Court in the event of an appeal. The above-named are authorized and directed to accept service of process on behalf of Reinsuring Underwriters in any such 'suit and/or upon the request of the Reinsured to give a written undertaking to the Reinsured that they will enter a general appearance upon Reinsuring Underwriters' behalf in the event such a suit shall be instituted. Further. pursuant to any statute of any state,territory or district of the United States which makes provision therefor, Reinsuring Underwriters hereon hereby designate the Superintendent. Commissioner or Director of Insurance or other officer specified for that purpose in the statute, or his successor or successors in office,as their true and lawful attorney upon whom may be served any lawful process in any action, suit of proceeding instituted by or on behalf of the Reinsured or any beneficiary hereunder arising out of this contract of reinsurance,and hereby designate the above- named as the person to whom the said officer is authorized to mail such process or a true copy thereof. Claims Control Clause Notwithstanding anything contained herein to the contrary, it is a condition precedent to any liability under this Certificate that:- a) The Reinsured shall, upon knowledge of any loss or losses which may give rise to a claim against this Certificate, advise the Reinsuring Underwriters thereof as soon as possible. b) The Reinsured shall furnish the Reinsuring Underwriters with all information available respecting such loss or losses, and the Reinsuring Underwriters shall have the right to appoint adjusters, assessors and/or surveyors and to control all negotiations,adjustments and settlements in connection with such loss or losses. Lines'Clause This Reinsurance, being signed for 51.000% of 100% of 75.00% reinsures only that proportion of any loss, whether total d'r partial, including but not'limited to that proportion of associated expenses, if any, to the extent and in the manner provided in this Reinsurance. The percentages signed in the Schedule attached hereto are percentages of 100% of 75.00% of the amount(s) of Reinstrance stated herein. Reinsurance Clause Notwithstanding anything contained herein to the contrary this Reinsurance is subject to all terms, clauses and conditions as original except as provided for herein, and to follow in all respects the settlements or other payments of whatsoever nature made by the original Underwriters arising out of and in connection with the original insurance and to bear its proportion of any expenses incurred whether legal or otherwise in the investigation and defence of any claim hereunder. Simultaneous Settlement Clause In the event of a claim under the original policy Reinsuring Underwriters agree that, any payment hereon shall take place at the same time as settlement or advance of funds under the said original policy. SEVERAL LIABILITY NOTICE • The subscribing reinsurers'obligations under contracts of reinsurance to which they subscribe are several and not joint and are limited solely to the extent of their individual subscriptions. The subscribing reinsurers are not responsible for the subscription of any co-subscribing reinsurer who for any reason does not satisfy all or part of its obligations. 08/94 LSW1001 (Reinsurance) I;I ' I ' li • I . Attaching'to and forming part of Certificate No. 901/LU0029117 Schedule of Reinsuring Underwriters Percentage Underwriters Syndicate Number Underwriters Reference 11.333% 2020 N327492F0B 5.418% 861 60A82041K02Z 6.623% 1209 60A82041K02Z 1.296% 588 60E47894F02Z 0.829% 1209 60E47894F02Z 6.800% 362 M1800BA02794 1.700% 823 M1800BA02794 1.247% 1003 NB545602C8PD 4.420% 2003 NB545602C8PD 5.667% 2488 AVCA4OYA8474 5.667% 190 1521P01025 51.000% of 100% of 75.00% • Ic i I DECLARATIONS PAGE 1) REINSURED: WASHINGTON CITIES INSURANCE AUTHORITY (WCIA) As more fully described in "NAME OF INSURED" (Section I, Item 1) and Named Insured Endorsement No. 17 2) MAILING ADDRESS: P. O. BOX 1165 RENTON, WA 98057 3) POLICY PERIOD: SEPTEMBER 1, 2000 12:01AM TO SEPTEMBER 1, 2001 12:01AM 4) LIMIT AND SUB-LIMITS OF LIABILITY: 1. $ 500,000,000 Per Occurrence: All Perils, Coverages and Insureds/Members combined, subject to sub-limits Sub'T limits: A. 1,$ 250,000,000 Per Occurrence and in the Annual Aggregate as respects - Flood -all coverages B. �:$ 100,000,000 Per Occurrence and in the Annual Aggregate as respects Earthquake Shock -all coverages C. '$ 100,000,000 Combined Business Interruption, Extra Expense, Rental Income and Tax Interruption D $ 25,000,000 Miscellaneous Unnamed Locations and automatic acquisition as respects existing and new 1I I members as per endorsement No. 18 (including earthquake) No new members for only automobile coverage 11 E. ,$ 25,000,000 Landscaping, tees, sand traps, greens and athletic fields F. '$ 25,000,000 Errors &Omissions G. '$ 25,000,000 Course Of Construction (including new for project values up to $25,000,000) H. $ 1,000,000 Money & Securities I. $ 10,000,000 Unscheduled Fine Arts J. I$ 1 500,000 Accidental Contamination K. !$ 1,000,000 Tunnels; bridges, dams, catwalks (except those not for public use), roadways, highways, streets, sidewalks, culverts, street lights and traffic signals unless a specific value has been declared L. $ 100,000,000 Demolition and Increased Cost of Construction due to the enforcement of,building codes $ 25,000,000 Transit 1,000,000 Animals; except $100,000 Specially Trained Animals $ 1,000,000 Watercraft under 27 feet or less unless scheduled $ 50,000 Newly Acquired Vehicles (current members with auto coverage only) $ Not covered Replacement power extra expense at scheduled utility locations $ 5,000,000 Off premises services interruption including extra expense resulting from a covered peril at 11, non-owned/operated locations , I$ Not Covered Contingent business interruption resulting from a covered peril at non owned/operated power generating facilities $Not applicable Per occurrence and in the annual aggregate: Earthquake shock on licensed vehicles, unlicensed vehicles, contractors equipment and fine arts combined for all insureds/members combined that do not purchase optional coverage Item-A): Earthquake Shock ; As more fully described,in "LIMITS OF LIABILITY" (Section I — Item 4) i' W.C.I.A.-PEPIP 2000 Declaration Page 1 of 3 TDEPT USER\WDGS\WDGS\2000\WCIA 11, I 5) II;DEDUCTIBLE(S): A. `BASIC"ALL PERILS AND COVERAGES (EXCEPT SPECIFIED PERIL OR COVERAGE DEDUCTIBLE SHOWN BELOW): j Deductible: $50,000 Per Occurrence B. SPECIFIED PERILS AND COVERAGE DEDUCTIBLES 1$ 100,000 Per Occurrence—Flood 0 112/o PerUnit of Insurance (Real & Personal Property and Time Element) subject to 100 000'Minimum $ , I P Y 1 Per Occurrence- Earthquake Shock,except I . Vehicles or Contractors Equipment- $25,000 Per Vehicle/Item sub bject to 100 000 maximum as respects theperils of Earthquake or Flood P q I ; b1. Fine Arts -$50,000 Per Occurrence— Earthquake or Flood I $ 50,000 Per Occurrence-vehicle property damage "$ 50,000 Per Occurrence-vehicle collision damage $ 1,000 Per Occurrence-Specially Trained Animals • 11$500,000 Per Occurrence - Tunnels, bridges, dams, catwalks (except those not for public use); roadways, i highways, streets, sidewalks, culverts, street lights and traffic signals unless a specific value has been declared 24 hour waiting period —All Perils: Service Interruption $ 10,000 - Course of Construction—All Perils except Earthquake & Flood 11 As llmore fully described in " DEDUCTIBLE PROVISIONS" (Section I—Item 5) 6) 'L';OPTIONAL COVERAGE PARTICIPATION 1 1 '�It is understood and agreed that the certain Member Agencies participate in Optional Coverage on this Policy as set forth below: : I; 1 MEMBER AGENCY "BASIC" COVERAGE APPLICABLE I 1 i 1 DEDUCTIBLE OPTIONAL' COVERAGES* All member per Named $ 50,000 A, B, C, E Insured Endorsement No. 17 *O IPTIONAL COVERAGES IDENTIFICATION: A) Earthquake Shock B) Licensed Vehicles C) Contractors Equipment/Unlicensed Vehicles 1 D) Scheduled Fine Arts E) Flood HI i I W.C.11A.-PEPIP 2000 Declaration Page 2 of 3 l T\DEP,iIT USER\WDGS\WDGS\2000\WCIA II 7 (SPECIAL PROVISIONS dlt is hereby understood and agreed that General Condition 10) Notice of Loss of the Wording ttach hereto, is amended to read as follows: 10)I NOTICE OF LOSS I In the event of loss or damage insured against under this Policy, the Insured shall give immediate notice thereof to ROBERT F. DRIVER ASSOCIATES, P.O. Box 6450, Newport , P Beach, CA 92658-6450 (949) 756-0271, FAX (949) 756-2713 of such loss. In the event of loss or damage that falls within the reporting requirements, the Insured will I I 9 P 9 q , give immediate notice to the Insurer. For those losses reported to the Insurer, the Insured agrees to use Crawford-THG International Loss Adjusters, 19109 — 36th West, Suite 105, Lynnwood, Washington 98036, for the investigation and adjustment of the loss. The Insured will retain responsibility for the direction of the investigation and the overall adjustment of the loss. However, Insurers reserve the right to utilize other adjusting firms if and when they feel it necessary. • II I i III i II o' II I I II I j I ' ,(III W.C.I.a.-PEPIP 2000 Declaration Page 3 of 3 TIDEPT USERIWDGS\WOGS12000\WCIA 11 WASHINGTON CITIES INSURANCE AUTHORITY (WCIA) PEPIP USA PROPERTY POLICIES EFFECTIVE SEPTEMBER 1, 2000 TO SEPTEMBER 1, 2001 LAYER C REINSURING COMPANIES a) WESTCHESTER FIRE INSURANCE COMPANY b) COREGIS INSURANCE COMPANY (NOT YET RECEIVED) c) D.P. MANN SYNDICATE #435, COX PROPERTY & CASUALTY SYNDICATE #2027 d) AGRICULTURAL INSURANCE COMPANY • (71 ! I ' SSOCIATES Certificate of Insurance arranged by L- JLT RISK SOLUTIONS Limited t tri am Lloyd' s Non-Proportional 'Reinsurance F�DENTIA Effected through • ,JLT Risk Solutions Limited 6 Crutched Friars London EC3N 2PH This is to Certify that in accordance with the authorisation ' granted under the Contract (the number of which is specified in the Schedule) to the undersigned by certain Underwriters at Lloyd's, whose definitive numbers and the proportion underwritten by them, are as attached hereto and can also be ascertained by reference to • the said Contract which bears the Seal of Lloyd's Policy Signing Office, and in consideration of the payment of the premium specified herein, the said Underwriters are hereby bound, severally and not jointly, their Executors and Administrators, to reinsure the Reinsured's interest in those payments made within the terms and conditions of the original policy. This Certificate shall pay only when the amount(s) stated in the Schedule as the Excess has been exceeded and up to the amount(s) stated in the Schedule as the Sum Reinsured hereunder. In the event of inconsistencies between the original policy and this Certificate, this Certificate shall prevail. If the Reinsured shall make any claim knowing the same to be false ; or fraudulent, as regards amount or otherwise, this Certificate shall become void and all claims hereunder shall be forfeited. In Witness whereof this Certificate has been signed at the place stated and on the date specified in the Schedule by JLT Risk Solutions Limited JLTRS/J3 Certificate THE REINSURED IS REQUESTED TO READ THIS CERTIFICATE AND, IF IT IS INCORRECT, RETURN IT IMMEDIATELY TO THE BROKER FOR ALTERATION. IN ALL COMMUNICATIONS THE CERTIFICATE NUMBER APPEARING IN THE SCHEDULE SHOULD BE QUOTED Schedule Certificate No: 901/LU0029345 Contract No. 6166/00 The Reinsured: WASHINGTON CITIES INSURANCE AUTHORITY(WCIA) The Original Insured: Members of Washington Cities Insurance Authority(Named Insured-Member as more fully defined in the attached Original Policy Wording) The Premium: USD 13 522.40 part of USD 67 612.00 , The Excess: USD 50,000,000 per occurrence The Sum Reinsured hereunder: USD450,000,000 per occurrence The Period of Reinsurance: From 1 September 2000 to 1 September 2001 both days at 12.01 am Local Standard Time commencing and expiring at the hour expressed in the original policy, and for such further period or periods as may be mutually agreed upon. The Subject Matter and Perils Reinsured hereunder: All Risks of Physical Loss or Damage including Flood, Earthquake Shock but excluding Boiler Explosion and Machinery Breakdown as more fully defined in the Original Policy Wording Endorsements, if any: See attached Clauses For and on behalf of JLT Risk Solutions Limited Authorised Signatory L27 Dated in London,the /' n % 11�.R./� JLTRS/J3 Certificate 11 ' Attaching to and forming part of Certificate No. 901/LU0029345 1. Service of Suit Clause(U.S.A.) It'is agreed that in the event of the failure of the Reinsuring Underwriters hereon to pay any amount claimed to be due hereunder,the Reinsuring Underwriters hereon, at the request of the Reinsured,will submit to the jurisdiction of a Court of competent jurisdiction within the United States. Nothing in this Clause constitutes or should be understood to constitute a waiver of Reinsuring Underwriters'rights to commence an action in any Court of competent jurisdiction in the United States,to remove an action to a United States District Court,or to seek a transfer of a case to another Court as permitted by the laws I of the United States or of any State in the United States. It is further agreed that service of process in' such suit may be made upon:- Messrs. Mendes and Mount(Attorneys),750 Seventh Avenue, New York,New York 10019-6829, USA and that in any suit instituted against any one of them upon this contract, Reinsuring Underwriters will abide by the final decision of such Court or of any Appellate Court in the event of an appeal. The above-named are authorized and directed to accept service of process on behalf of Reinsuring Underwriters in any such suit and/or upon the request of the Reinsured to give a written undertaking to the Reinsured that they will enter a general appearance upon Reinsuring Underwriters' behalf in the event such a suit shall be instituted. Further, pursuant to any statute of any state,territory or district of the United States which makes provision therefor, Reinsuring Underwriters hereon hereby designate the Superintendent, Commissioner or Director of Insurance or other officer specified for that purpose in the statute, or his successor or successors in office, as their true and lawful attorney upon whom may be served any lawful process in any action, suit of proceeding instituted by or on behalf of the Reinsured or any beneficiary hereunder arising out of this contract of reinsurance, and hereby designate the above- named as the person to whom the said officer is authorized to mail such process or a true copy thereof. 2. Claims Control Clause Notwithstanding anything contained herein to the contrary, it is a condition precedent to any liability under this Certificate that:- a) The Reinsured shall,upon knowledge of any loss or losses which may give rise to a claim against this Certificate, advise the Reinsuring Underwriters thereof as soon as possible. b) The Reinsured shall furnish the Reinsuring Underwriters with all information available respecting such loss or losses, and the Reinsuring Underwriters shall have the right to appoint adjusters,assessors and/or surveyors and to control all negotiations, adjustments and settlements in connection with such loss or losses. 3. Lines Clause This Reinsurance, being signed for 100%of 20.00%reinsures only that proportion of any loss, whether total or partial, including but not limited to that proportion of associated expenses, if any,to the extent and in the manner provided in this Reinsurance. The percentages signed in the Schedule attached hereto are percentages of 100%of 20.00%of the amount(s)of Reinsurance stated herein. 4. Reinsurance Clause Notwithstanding anything contained herein to the contrary this Reinsurance is subject to all terms, clauses and conditions as original except as provided for herein, and to follow in all respects the settlements or other payments of whatsoever nature made by the original Underwriters arising out of and in connection with the original insurance and to bear its proportion of any expenses incurred whether legal or otherwise in the investigation and defence of any claim hereunder. 5. Simultaneous Settlement Clause In the event of a claim under the original policy Reinsuring Underwriters agree that, any payment hereon shall take place at the same time as settlement or advance of funds under the said original policy. 6. This Certificate reinsures the Reinsured's interest in payments excluding without prejudice and ex- gratia payments made within the terms and conditions of the attached original wording for 20.00%on the identical subject matter and risk. 7. In the event of inconsistencies between the attached original wording and the original wording_issued to the Original Assured the attached original wording shall prevail. 8. Coverage not confined to locations as declared. SEVERAL LIABILITY NOTICE The subscribing reinsurers'obligations under contracts of reinsurance to which they subscribe are several and not joint and are limited solely to the extent of their individual subscriptions. The subscribing reinsurers are not responsible for the subscription of any co-subscribing reinsurer who for any reason does not satisfy all or part of its obligations. 08/94 LS W 1 00 1 (Reinsurance) Attaching to and forming part of Certificate No. 901/LU0029345 Schedule of Reinsuring Underwriters Percentage Underwriters Syndicate Number Underwriters Reference 51.665% 435 79847000 25.000% 2027 00P27569A000 11.250% 506 T6T58100000 3.750% 506 N1218100000 8.335% 1243 P01 121 E00ABC 100% of 20.00% I l I DECLARATIONS PAGE 1) REINSURED: WASHINGTON CITIES INSURANCE AUTHORITY (WCIA) As more fullydescribed in "NAME OF INSURED" (Section I, Item 1) and Named Insured Endorsement No. 17 2) MAILING ADDRESS: 'P. O. BOX 1165 RENTON, WA 98057 3) POLICY PERIOD: SEPTEMBER 1, 2000 12:01AM TO SEPTEMBER 1, 2001' 12:01AM 4) LIMIT AND SUB-LIMITS OF LIABILITY: 1. $1459,000,000 Per Occurrence:All Perils, Coverages and Insureds/Members combined, EXCESS OF $ 50,000,000 Per Occurrence: All Perils, Coverages and Insureds/Members combined, subject to sub-limits Sub-limits: A. $ 250,000,000 Per Occurrence and in the Annual Aggregate as respects - Flood -all coverages B. $ 1100,000,000 Per Occurrence and in the Annual Aggregate as respects Earthquake Shock-Ian,coverages C. $ 100,000,000 Combined Business Interruption, Extra Expense, Rental Income and Tax Interruption D $ 25,000,000 Miscellaneous Unnamed Locations and automatic acquisition as respects existing and new members as per endorsement No. 18 (including earthquake) No new members,for only automobile coverage E. $ 25,000,000 Landscaping, tees, sand traps, greens and athletic fields F. $ 25,000,000 Errors & Omissions G. $ 25,000,000 Course Of,Construction (including new for project values up to$25,000,000) H. $ 11,000,000 Money& Securities I. $ 10,000,000 Unscheduled Fine Arts J. $ I 500,000 Accidental Contamination K. $ 1I,000,000 Tunnels, bridges, dams, catwalks (except those not for public use), roadways,lhighways, streets, sidewalks;culverts, street lights and traffic signals unless a specific value has been declared L. $;,100,000,000 Demolition and Increased Cost of Construction due to the enforcement of building codes $ 125,000,000 Transit $ 1:,000,000 Animals; except $100,000 Specially Trained Animals $ 11,000,000 Watercraft under 27 feet or less unless scheduled $ , 50,000 Newly Acquired Vehicles (current members with auto coverage only) $ Not covered Replacement power extra expense at scheduled utility locations $ 5,000,000 Off premises services interruption including extra expense resulting from a covered peril at non-owned/operated locations $'kNotlCovered Contingent business interruption resulting from a covered peril at non owned/operated power generating facilities $Not applicable Per occurrence and in the annual aggregate: Earthquake shock on licensed vehicles, unlicensed vehicles, contractors equipment and fine arts combined for all insureds/members combined that do not purchase optional coverage Item-A): Earthquake Shock ' As more fully described in "LIMITS.OF LIABILITY" (Section I — Item 4) 1 W.C.I.A.-PEPIP,2000 Declaration Page 1 of 3 T\DEPT USER\WDGSIWDGS120001WCIA LU0029345' 5) DEDUCTIBLE(S): A. "BASIC"ALL PERILS AND COVERAGES (EXCEPT SPECIFIED PERIL OR COVERAGE DEDUCTIBLE SHOWN BELOW): Deductible: $50,0001 Per Occurrence B. SPECIFIED PERILS AND COVERAGE DEDUCTIBLES $ 100,000 Per Occurrence—Flood 2% Per Unit of Insurance (Real & Personal Property and Time Element) subject to $100,000 Minimum Per Occurrence- Earthquake Shock, except a. Vehicles or Contractors Equipment-$25,000 Per Vehicle/Item subject to $100,000 maximum as respects the perils of Earthquake or Flood b. Fine Arts - $50,000 Per Occurrence— Earthquake or Flood $ 50,000 Per Occurrence-vehicle property damage $ 50,000 Per Occurrence-'vehicle collision damage $ 1,000 Per Occurrence=Specially Trained Animals $500,000 Per Occurrence -Tunnels, bridges, dams, catwalks (except those not for public use), roadways, highways, streets, sidewalks, culverts, street lights and traffic signals unless a specific value has been declared 24 hour waiting period —All Perils: Service Interruption $ 10,000 - Course of Construction —All Perils except Earthquake & Flood As more fully described in " DEDUCTIBLE PROVISIONS" (Section I—Item 5) 6) OPTIONAL COVERAGE PARTICIPATION It is understood and agreed that the certain Member Agencies participate in Optional Coverage on this Policy as set forth below: , MEMBER AGENCY "BASIC" COVERAGE APPLICABLE DEDUCTIBLE OPTIONAL COVERAGES* All member per Named $ 50,000 A, B, C, E Insured Endorsement No. 17 *OPTIONAL COVERAGES IDENTIFICATION: A) Earthquake Shock B) Licensed Vehicles C) Contractors Equipment/Unlicensed Vehicles D) Scheduled Fine Arts E) Flood W.C.I.A.-PEPIP 2000 Declaration Page 2 of 3 T\DEPT USER\WDGS\WDGS12000\WCIA LU0029345 1 7) SPECIAL EXCESS PROVISIONS ' 1. In the event of reduction or exhaustion of the Primary or Underlying aggregate limit or limits for the perils of Flood and/or Earthquake Shock, it is hereby understood and agreed that such Insurance as is afforded by this policy shall apply in excess of the reduced underlying limit in respect of such perils, or if such limit is exhausted, shall apply as underlying insurance, subject to the original deductible provisions contained in the underlying policy(ies), notwithstanding anything to the contrary in the terms and conditions of this policy. In no event, however, shall this Insurer be liable for more than the limit(s) of liability specified herein. 2. It is hereby understood and agreed that General Condition 10) Notice of Loss of the Wording attach hereto, is amended to read as follows: 10) NOTICE OF LOSS In the event of loss or damage insured against under this Policy, the Insured shall give immediate notice thereof to ROBERT F. DRIVER ASSOCIATES, P.O. Box 6450, Newport Beach, CA 92658-6450 (949) 756-0271, FAX (949) 756-2713 of such loss. In the event of loss or damage that falls within the reporting requirements, the Insured will give immediate notice to the Insurer. For those losses reported to the Insurer, the Insured agrees to use Crawford-THG International Loss Adjusters, 19109' — 36th West, Suite 105, Lynnwood, Washington 98036, for the investigation and adjustment of the loss. The Insured will retain responsibility for the direction of the investigation and the overall adjustment of the loss. However, Insurers reserve the right to utilize other adjusting firms if and when they feel it necessary. W.C.I.A.-PEPIP 2000 Declaration Page 3 of 3 TDEPTIUSER\WDGS\WDGS\2000\WCIA L00029345 1 1 PEPIP USA . CONTENTS Page No. • ; Contents Pages 1-6 11 , SECTION 1 Declarations 1) Name of Insured 7 2) Address of Insured 1 7 • 3) Policy Period 8 4) Limits of Liability 8 4a) Optional Coverage Participation 9 5) Deductible Provisions 9 6) Unit of Insurance Defined 9 SECTION II PHYSICAL DAMAGE TO PROPERTY 1) Coverage 10 2) Extensions of Coverage 10 A) Personal Effects 10 B) Property in Course of Construction 10 ' C) Fire Fighting Expenses 11 D) Off Premises Services Clause 12 E) Architects and Engineers Fees and Loss Adjustment Expenses 1,2 F) Expediting Expenses • 12 G) Debris Removal 12 H) Building Laws 12 I) Demolition Cost 13 J) Increased Cost of Construction 13 K) Automatic Coverage 13 L) Errors and Omissions 13• M) Animals 13 N) Valuable Papers ; 13 0) Transit 14 __ P) Vehicles While On Insured Premises 14, W.C.I.A.-PEPIP 2000 Declaration Page 1 i I 1 3) Exclusions 114 ' A) Property Exclusions 14 B) Asbestos Clean-up and Removal ;16 4) Loss Payment BasisNaluation 16 5) Special Conditions .19 A) Automatic Coverage/Reporting Conditions 19 6) Definitions 20 A) Loss 20 1) Windstorm 20 2) Flood 20 3) Earthquake Shock 21 4) Personal Effects 22 5-) Improvements and Betterments 22 SECTION III INTERRUPTION OF BUSINESS 1 EXTRA EXPENSE AND RENTAL INCOME 1) Coverage 23 A) Business Interruption 23 B) Extra Expense !23 2) Extensions of Coverage 24 A) Ingress/Egress 24 B) Interruption by Civil Authority 24 C) Demolition and increased time to rebuild 24 D) Non-Productive Property 25 E) Contingent business interruption and/or extra expense and/or rental value 25 F) Extended period of indemnity extension 25 I 3) Exclusions 26 , A) Special Exclusions 26 4) Loss Payment Valuation ' 26 ' A) Expenses to Reduce Loss 26 5) Conditions Applicable to Business Interruption/ Extra Expense and Rental Value 27 1 1 W.C.I.A.-PEPIP 2000 Declaration Page 2 i I ' 6) Definitions 127 A) Gross Earnings 27 B) Merchandise 28 , C) Extra Expense 28 D) Rental Value 28 E) Period of Restoration 28 SECTION IV GENERAL CONDITIONS 1 1) Perils Covered 29 2) Perils Excluded 29 3) Territorial Limits ' 31 4) Reinstatement 31 5) F.O.B.;Shipments 31 6) Protection and Preservation of Property ' 31 7) Breach of Conditions 31 8) Permits and Privileges 32 1 9) Proteq'tive Safeguard 132 ; 10) Notice.of Loss 33 11) Protection of Property 133 12) Arbitration of Value 34 , 13) Proof of Loss 34 14) Subrogation 34 15) Cancellation 35 16) Abandonment I 36 17) Assignment 36 1 1 18) Salvage 36 19) Other'Insurance 36 20) Excess Insurance 37 21) Right to Review Records 37 22) Concealment and Fraud 37 ! ' 23) Liberalization . 37' 24) Loss Payable Clause 38 1 25) Full Waiver ' 38 i 26) Report of Values/Premium 38 1 1 W.C.I.A.-PEPIP 20001,Declaration Page 3 rneor 1 necouemeeummnewnnnunirin I 7 ' SECTION V DATA PROCESSING MEDIA 1) Coverage '39 A) Property Covered 39 B) Perils Covered 39 , 2) Extensions of Coverage 39 3) Exclusions 39 ' A) Property Excluded 39 B) Perils Excluded 39 ! , 4) Loss Payment BasisNaluation 40 5) Special Conditions 140 6) Definitions 40 Active Data ProcessingMedia 40 A) Ac e B) Computer Virus 41 SECTION VI FINE ARTS FLOATER 1) Coverage 42 , A) Property Covered '42 ! 7 B) This Floater Insures Against 43 C) Wall to Wall (Nail to Nail) Coverage 43 , 2) Extensions of Coverage '43 3) Exclusions 43 4) Loss Payment BasisNaluation 44 5) Special Conditions 45 ' 1) Misrepresentation and Fraud 45 2) Notice of Loss 45 3) Examination Under Oath '45 4) Settlement of Loss '45 5) No Benefit to Bailee 45 6) Subrogation of Loan 46 7) Loss Clause 46 8) Protection of Property 46 ; 9) Suits 46 10) Appraisal 46 11) Civil Authority 477 12) Conformity to Statute 47 13) Changes 147 14) Additional Covered Party(ies) 47 , 15) Packing 47 16) Other Insurance '47 17) Pair and Set - 47 6) Definitions 48 i W.C.I.A.-PEPIP 2000 Declaration Page 4 li I , Y I SECTION VII I EXTRA EXPENSE , ELECTRONIC DATA PROCESSING 1) Coverage 49' Measure of Recovery 49 2) Extensions of Coverage 50, 3) Exclusions 50 4) Loss Payment Basis/Valuation Deductible 51 5) Special1Conditions ' 51 Resumption of Operations 151 6) Definitions 51 , A) Extra Expense 51 , B) Normal 52 C) Computer Virus ! 52 SECTION VIII MOBILE / CONTRACTORS EQUIPMENT 1) Coverage 53, fl 2) Extensions of Coverage 54 } 3) Exclusions 54, 4) Loss Payment BasisNaluation 55; 5) Special Conditions 55 6) Definitions 55 SECTION IX 1 ACCOUNTS RECEIVABLE . 1. Coverage 56' 2. Extensions of Coverage 58 3. Exclusions 56' 4. Loss Payment BasisNaluation 57, ' Determination of Receivables; Deductions 57' 5 Special Conditions 57 6 Definitions 58' III Accounts Receivable 58 i I I dl, I ' , I I i W.C.I.A.-PEPIP 2000!Declaration Page 5 I I SCHEDULE OF ENDORSEMENTS ENDORSEMENT No. 1 Boiler and Machinery and Property Joint Loss Adjustment 59 ENDORSEMENT No. 2 Property Joint Loss Adjustment 60 ENDORSEMENT No. 3 Seepage and/or Pollution and/or Contamination Exclusion, Debris Removal and Cost of Clean-Up Extension, Authorities Exclusion 61/62 ENDORSEMENT No. 4 Minimum Earned Assessments 63 ENDORSEMENT No. 5 Lender's Loss Payable Endorsement. 64/65 ' ENDORSEMENT No. 6 Severability Notice 66 ENDORSEMENT No. 7 Accidental Contamination Extension 67 ENDORSEMENT No. 8 Automatic Additional Insureds and/or Loss Payees 68 ENDORSEMENT No. 9 Earthquake and Flood Exclusion 69 ENDORSEMENT No. 10 Priority of Payments 70 ENDORSEMENT No. 11 Leasehold Interest 71 ENDORSEMENT No. 12 Revenue Interruption Protection (excluding Earthquake and Flood) 72 ENDORSEMENT No. 13 Loss Payable Provisions (Form CP 12 18 10 91) .73/74/75 ENDORSEMENT;No. 14 Electronic Date Recognition Exclusion "Wording A" 76 ENDORSEMENT No. 15 Electronic Date Recognition Exclusion "Wording B" 77 ENDORSEMENT No. 16 Electronic Date Recognition Exclusion Members/Insureds provided "Wording B" Coverage 78 ENDORSEMENT No. 17 Named Insured and Members (and deductibles if shown) 79/80 ENDORSEMENT; No. 18 Automatic Acquisition Clause 81/82 W.C.I.A.-PEPIP 2000 Declaration Page 6 T\DEPT USER\WDGS\WDGS12000\WCIA SECTION I In'consideration of the premium paid by the Insured to this Insurer, the Insurer agrees to insure the following per the terms and conditions herein: 11 1)! NAME OF INSURED: AS PER DECLARATIONS PAGE 1 and its members or (member agencies) as per the Named Insured Endorsement and any entities or individuals for whom the Named Insured is required to provide coverage as their interests may appear and other organizations and enterprises which now exist or which hereafter may be created or acquired and which are owned, financially controlled or actively managed by the herein named interest, all jointly, severally or in any combination of their interests, for account of whom it may concern. Lessors and other party(ies) of interest in all property of every description covered hereunder are included herein as additional Insureds for their respective bights and interests, it being understood that the inclusion hereunder of more than one covered party shall not serve to increase the Insurer's limit of liability. Mortgagees to whom certificates of coverage have been issued are covered hereunder in accordance with the terms and conditions of Form 438 'BFU NS, CP12 18 1091, or equivalent as required by the mortgagee. Loss, if any, shall be adjusted with the Insured and payable to the named insureds as their respective,interests may appear, subject however, to the provisions of any mortgagees or payee clauses which may otherwise be herein provided or endorsed hereon. II 1 I 2)I MAILING ADDRESS OF INSURED: AS PER DECLARATION PAGE II W.C.I.A.-PEPIP 2000 Declaration Page 7 3) POLICY PERIOD: 12 MONTHS AS PER DECLARATION EFFECTIVE DATE AND EXPIRATION DATE 4)'; LIMITS OF LIABILITY: The limit of liability as stated below is per occurrence and in the annual aggregate as respects the peril of earthquake shock and also in the annual aggregate as respects the peril Of flood. The provisions of the reinstatement clause las stated elsewhere herein, are null and void as respects the perils of earthquake shock and flood. Subject to specific; exclusions, modifications, and conditions hereinafteriprovided, the liability of this Insurer in any one occurrence regardless of whether one or more of the coverages of this Policy are involved shall not exceed: 1.AS PER DECLARATION Per occurrence all risk perils except earthquake shock and;flood THE FOLLOWING ARE OPTIONAL COVERAGES. COVERAGE IS PROVIDED IF A SUB-LIMIT IS SHOWN ON THE DECLARATIONS PAGE. SUB-LIMITS DO NOT INCREASE THE OCCURRENCE LIMIT OF LIABILITY. A. Per occurrence]and in the annual aggregate as respects flood. B. Per occurrence,and in the annual aggregate as respects earthquake shock C. Combined Business Interruption, Extra Expense, Rental Income, Tax Interruption E. Miscellaneous unnamed locations and automatic coverage as per • Endorsement#18 E. Landscaping, tees, sand traps, greens and athletic fields F. Errors & Omissions G. Course of Construction H. Money and Securities for Fire, Wind, Hail, Explosion, Smoke, Lightning,! Riot, Civil Commotion, Impact by Aircraft or Objects falling therefrom, Impact by Vehicles, Water Damage and Theft (other than by an employee of the Insured) I'. Unscheduled fine arts J. Accidental Contamination including owned land, land values and water owned by the Insured, K. Tunnels, bridges, dams, catwalks except those not for public use, roadways, highways, streets, sidewalks, culverts, street lights and traffic signals ' L. Other— as shown in declarations page W.C.I.A.-PEPIP 2000 Declaration Page 8 4A) OPTIONAL COVERAGE PARTICIPATION It is understood and agreed that certain Insureds participate in Optional Coverage on this Policy as set forth below. OPTIONAL COVERAGES IDENTIFICATION: A) Earthquake Shock B) Licensed Vehicles C) Contractors Equipment/Unlicensed Vehicles D) Scheduled Fine Arts E) Flood — Shared Program Limits F) —Flood Specified Flood Per Insured ti 5A' DEDUCTIBLE PROVISIONS: If two or more deductible amounts provided above apply for a single 'occurrence', the total to be deducted shall not exceed the largest per 'occurrence' deductible amount applicable. Deductibles are shown on the Declarations page. 6 UNIT OF INSURANCE DEFINED: In the application of the Earthquake Shock Deductible Clause, and the Apportionment of Loss Clause made a part of this Policy, each of the following I,IIShall be considered a Separate Unit of Insurance: (a) Each Separate Building or Structure; (b) The Contents of each Building or Structure; � (c) Applicable Time Element Coverage of each separate Building or Structure; and it (d) Property in each Yard. This Insurer shall not be liable for loss to any Unit of Insurance covered hereunder unless such loss exceeds the percentages stated in this Policy of the replacement values of such Unit of Insurance at the time when such loss shall happen, and then only for its proportion of such excess. ' I I The Terms and Conditions stated in #5 (Deductible provisions) and #6 [(Unit of insurance defined) supersede the provisions of any Deductible Clause contained elsewhere in this Policy. ! ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED YI W.C.I.A.-PEPIP 2900 Declaration Page 9 m ! , tli I i I ; I i I SECTION II [PHYSICAL DAMAGE TO PROPERTY ; 1) COVERAGE: pl Subject to the terms, conditions and exclusions hereinafter contained, this Policy insures all property of every description of an insurable nature, both 'real and personal (including, improvements and betterments), of the Insured or property of others in the care, custody or control of the Insured, for which the Insured is liable or under obligation'to keep insured. It is also understood and agreed that the interest of additional covered parties and/or loss payees are automatically included. 2) EXTENSIONS OF COVERAGE: A) PERSONAL EFFECTS This Policy is extended to cover only such personal effects and wearing apparel of any of the officials,;employees, students and personal effects of the Insured named in this Policy for which the Insured may elect to assume liability while located in accordance with the coverage hereof, but loss, if any, on such property shall be adjusted with and payable to the Insured. B) PROPERTY IN COURSE OF CONSTRUCTION It is understood and agreed that as respects course of construction; and remodeling projects, this Policy will provide automatic coverage subject to the following conditions: (1) Project involves only real property on new or existing locations (excluding dams, piers, roads, and bridges) (2) Value of the project at the location does not exceed $25,000,000, however;the Insured shall report to the companies if values of Project Ir exceed $25,000,000. However, inadvertent failure to report; shall not void coverage of said Project. (3) Additional Expense Soft Cost: This coverage applies to new buildings or structures in the course of construction up to the time that the new I building (s) or structure (s) is initially occupied or put to its intended use whichever occurs first. II W.C.I.A.-PEPIP 2000 Declaration Page 10 T\DEPT USER\WOGS\WDGS12000\WCIA The Insurer will cover the additional expenses of the Insured as defined below for up to 25% of the estimated completed value of the project which results from a delay in the completion of the project beyond the date it would have been completed had no !loss or damage occurred. The delay must be due, to direct physical loss or damage to Property Insured and be caused by or result from a peril not excluded by this Policy. The Insurer will pay covered expenses when. they are incurred. a. Additional Interest Coverage —The Insurer will pay the additional interest on money you borrow to finance construction or repair. b. Rent or Rental Value Coverage — The Insurer will pay the actual loss of net rental income that results from delay beyond the projected completion date. But the Insurer will not pay more than the reduction in rental income less charges and expenses that do not necessarily continue. c. Additional Real Estate Taxes or Other Assessments — The Insurer will pay the additional real estate taxes or other assessments you incur for the period of time that construction is extended beyond the completion date. d. Additional Advertising and Promotional Expenses — The Insurer will pay the additional advertising and promotional expense that 'becomes necessary as a result of a delay in the completion of the project. e. Additional Commissions Expense — The Insurer will pay the additional expenses which result from the renegotiating of leases following an interruption in the project. f. Additional Architectural and Engineering Fees — The Insurer will pay the additional architectural and engineering fees that become necessary as a result of a delay in the completion of the project. ! g. Additional License and Permit Fees — The Insurer will pay the additional license and permit fees that become necessary as a delay; in the completion of the project. h. Legal and Accounting Fees — The Insurer will pay the additional.legal and accounting fees you incur as a result of a delay in the completion of the project.) C) FIRE FIGHTING EXPENSES It is understood and agreed that the Insurer shall be liable for the actual charges of fire fighting expenses including but not limited to those charged by mdnicipal or private fire departments responding to and fighting fire in/on, and/or protecting property included in coverage provided by this Policy. , W.C.I.A.-PEPIP 2000 Declaration Page 11 it i i D) OFF PREMISES SERVICES CLAUSE r ' lit is understood and agreed that coverage under this Policy is extended to include physical damage, business interruption loss and/or extra expense incurred and/or sustained by the Insured as a result of damage to or destruction of, by the perils insured against, to property of the type not excluded by this Policy of any suppliers furnishing heat, light, power, gas, water, telephone or similar services to an Insured's premises. E) ARCHITECTS AND ENGINEERS FEES AND LOSS ADJUSTMENT EXPENSESI This Policy also insures any of the following: (1) Architects and engineers fees (2) Loss adjustment expenses including, but not limited to, auditors, consultants and accountants F) EXPEDITING EXPENSES It is understood ;and agreed that coverage under this Policy includes the reasonable extra cost of temporary repair and of expediting the repair of, such damaged property of the Insured, including overtime and the extra costs of express or other rapid means of transportation. G) DEBRIS REMOVAL This Policy also covers expenses incurred in the removal of debris of the property covered hereunder that may be destroyed or damaged by a covered peril(s). This debris removal coverage does not apply to the cost to extract pollutants!froni land or water, or to remove, restore or replace polluted land or water, except as provided by Endorsement No 07. H) BUILDING LAWS The loss occasioned by the enforcement of any local or state ordinance or law regulating the construction, repair or demolition of buildings or structures, which is in force at the time such a loss occurs, which necessitates the demolition of any portion of the covered building not damaged by the covered peril(s). _ . ; W.C.I.A.-PEPIP 2000 Declaration Page 12 T\DEPT USER\WDGS\WDGS\2000\WCIA • I) DEMOLITION COST 1 The cost of demolishing any undamaged portion of the covered property including the cost of clearing the site thereof, caused by loss from any covered peril(s) 'under this Policy and resulting from enforcement of any local or state ordinance or law regulating the construction, repair or demolition of buildings or structures and in force at the time of loss which necessitates such demolition; J) INCREASED COST OF CONSTRUCTION The increased cost of repair or replacement occasioned by the enforcement of any local state ordinance or law regulating the construction, repair or demolition of buildings or structures, which is in force at the time such a loss occurs or ;which comes into force within 18 months after such a loss occurs, which necessitates in repairing or replacing the building covered hereunder which has suffered damage or destruction by the covered peril(s) or which has undergone demolition, limited, however, to the minimum requirements of such ordinance or law. K) AUTOMATIC COVERAGE This Policy provides automatic coverage without additional premium, for additions and increases in values as respects existing Insureds subject to such increase in values not exceeding $ per declaration page and as per Endorsement #18 per Insured. L) ERRORS & OMISSIONS No unintentional errors or omissions in description, location of property or valuation of property will prejudice the Insured's right of recovery but will be reported to the Insurer(s) as soon as practicable when discovered. M) ANIMALS Including police dogs, horses and other specially trained animals. Coverage includes retraining expenses. N) VALUABLE PAPERS Valuable papers or the cost to reconstruct valuable papers lost or damaged by perils insured against during the term of this Policy. I W.c.I.A.PEPIP 2000 Declaration Page 13 0) TRANSIT. Personal property of the Insured or property held by the Insured in trust ;or on commission or on! consignment for which the Insured may be held Iegally;Iiable while in due course of transit, worldwide, against All Risks of Direct Physical Loss or Damage to the property insured occurring during the period of this Policy. P) VEHICLES WHILE ON INSURED PREMISES Vehicles while on premises against lost or damaged by a peril insured against ; during the term of this Policy. 3)! PROPERTY NOT COVERED: A) PROPERTY EXCLUSIONS This Property Policy does not provide coverage for any of the following: (1) Aircraft, watercraft and rolling stock, except: Watercraft of the type'up to 27', unless scheduled and Light rail vehicles, subway trains and related, track maintenance'vehicles for light rail and subway lines. (2) Standing timber, bodies of water, growing crops, and dams. (3) Land, (including land on which covered property is located), and land values (except athletic fields, landscaping, sand traps, tees and greens). (4) Property in due course of ocean marine transit. P Y 11 (5) Shipment by'' mail after delivery into the custody of the United States Post Office. (6) Property in course of construction with construction values greater than $25,000,000., (7) Power transmission, feeder lines and underground pipes more than 2,500 feet from the premises of the Insured. (8) Tunnels, bridges, dams, catwalks (except those not for public use), 'rgadways, highways, streets, sidewalks, culverts, streetlights, traffic signals, excess of a 1 000 000 sub-limit unless values are specifically declared. (9) As respects course of construction the following exclusions shall apply: (a) The cost of making good, faulty or defective workmanship, material, construction or design, but this exclusion shall not apply to damage resulting from such faulty or defective workmanship,1 material, construction or design. W.C.I.A.-PEPIP 2000 Declaration Page 14 T\DEPT USER\W DGS\W DGS\2000\W CIA ill) I I i II (b) The cost of non-compliance of, or delay in completion of contract. (c) The cost of non-compliance with contract conditions. (d) Contractors' equipment or tools not a part or destined to become a part of the installation. The following additional exclusions apply to loss or damage to animal covered under this Policy: i ( 1) Death ofanya nimal s from natural causes. (I2) Death of any animals) which dies from an unknown cause unless: (a) upon thle death of such animal a post-mortem examination made of such animal by a licensed veterinarian, and if ill (b) the veterinarian's post-mortem report shows the cause of dleath to clearly fall within the coverages of this Policy. (I3) Death of any animal(s) as a result of surgical operation, including inoculation, unless the necessity for same arises from an event covered by this Policy. i of anyanimal(s) caused byresultingfrom; or made l' (I4) The death or destruction , necessary by physical injury caused by or resulting from the activities of the injured animal or other animals unless such death or destruction is Ithe result otherwise covered bythis Policy. I I of anyevent Y 5 The death of anyan imal(s)s caused directlyor indirectlybythe neglect or II' O O 9 , abuse of the Insured, his agent, employees or bailees (carriers for hire excepted) unless such loss is a result of an event otherwise covered by this Policy. (I6) The loss by death of any animal(s) as a result of parturition or abortion. (I7) Loss resulting from depreciation in value caused by any animal(s) covered hereunder becoming unfit for or incapable of filling the function or duties for IP which it is kept, employed or intended unless such loss is the result ,of an event otherwise covered by this Policy. (18) Loss by destruction of any animal(s) on the order of the federal or,any state government, or otherwise as a result of having contracted or been exposed to any contagious or communicable disease. (19) The removal or disposal of the remains of any animal(s) nor the expense thereof unless such loss is the result of an event otherwise covered by this Policy. W.C.I.A.-PEPIP 2000 Declaration Page 15 nntnT i IOCOunmrcuemr_ewnnnanirin I I I (10) The loss of any animal(s) that has been unnerved (the term "unnerved" to be considered as meaning the operation'of neurotomy for lameness). I � (11) Any claim consequent upondeterioration, or loss of use or 'loss of delay, market arising from an event covered by this Policy. i B) ASBESTOS CLEAN-UP AND REMOVAL This Policy specifically excludes asbestos clean-up, removal or loss of use of any Insured facility as mandated by any Public Agency, code or ordinance. However, in the event that asbestos materials not previously required to be removed; by a Public Agency, code or ordinance sustains physical damage as a result) of a covered peril(s) then coverage is afforded for, Debris removal or salvage operations within the immediate area of physical damage (caused by a covered peril) to other covered property; then this Policy will provide coverage for'l,asbestos c clean-up or removal within the damaged area and applicable time, element coverages. Asbestos clean-up, removal and loss of use of insured facilities under the J' demolition and increased cost of construction coverage provided by this; Policy is hereby excluded: In no event will coverage be extended to cover undamaged asbestos, or in anyportions of the buildingmandated byPublic A enc undamaged asbestos g. y, codes or ordinances to be demolished or brought into compliance with 'current buildingcodes. I 4)G LOSS PAYMENT BAS.ISNALUATION In case of loss to property of an Insured covered hereunder, the basis of adjustment shall be as of the time and place of loss as follows: ! ' 1 (A) On all real and personal property, including property of others' at the replacement value at the time of the loss without deduction for depreciation. If property is not replaced within a reasonable period of time, then the actual ' cash value. j ' (B) On improvements and betterments at the replacement value at tine! of loss , without deduction for depreciation. If property is not repaired or replaced ' within a reasonable period of time, then the actual cash value. If replaced or repaired by others for the use of the Insured, there shall be no liability 11 hereunder. The Insurer agrees to accept and consider the Insured as sole and unconditional owner of all improvements and betterments, any contract or lease the Insured may have made to the contrary notwithstanding, II W.D.I.A.-Ii' PEPIP 2000 Declaration I Page 16 i T\DEPT USER\WDGS\WDGS\2000\WCIA p (C) On manuscripts, mechanical drawings, patterns, electronic data processing media, books of accounting and other valuable papers, the full replacement ' cost of the property at the time of loss (including expenses incurred to recreate the information lost, damaged or destroyed) or what it would then cost to repair, replace or reconstruct the property with other of like kind and quality. If not repaired, replaced or reconstructed within a reasonable period of time, then not to exceed the cost of blank or unexposed material. (D) On antique, restored or historical buildings, the cost of acquisition, relocation to the site and renovation or reconstruction. In the event of a partial loss, normal replacement cost coverage as set forth in item A above would apply. (E) On property of others for which the Insured is liable under contract or lease agreement the Insurer's liability in the event of loss is limited to the Insured's obligation as defined in said contract or lease agreement. (F) The valuation of library contents is as follows: Category Value** Juvenile Picture Book $ 14.75 Juvenile Book $ 14.75 Juvenile Reference Book $ 33.50 Pamphlets $ 2.00 Magazines $ 4.75 Fiction , $ 21.00 Law Periodical $ 34.95 Non-Fiction $ 32.50 Reference $ 83.75 Law Reference $ 110.00 Art $ 71.75 Film (16mm) $ 600.00 Film ( 8mm) $ 15.00 Film (Super 8mm) $ 15.00 Strips $ 8.25 Cassette Film Strips $ 57.00 Records $ 11.00 Videos (Tapes and C.D.$) $ 51.00 Audio cassette $ 11.75 I Computer Software (incl. C.D.$) $ 400.00 (Law) CD ROM $ 80.00 Books on Tape $ 22.00 Law Malgazines $ 6.25 Compact Discs - $ 25.00 Paperback Books $ 7.50 o' W.C.I.A.-PEPIP 2000 Declaration Page 17 TVICOT I Icoeanmceuemncronnn Inure I li I These figures are the raw costs of each category of books established from the library association. The figures do not include the "shelving cost" of each book as we recognize that not all books will be replaced. The coverage for shelving is a "valuable papers" exposure i.e. and covered elsewhere in this Policy. Therefore, the formula for adjusting a library loss is: # of items in a category X valuation figure + shelving cost under "valuable,papers" coverage if item is replaced. This eliminates the need to adjust each item on its specific actual cash value or replacement cost. The actual cost per item in the final adjustment is to be computed as of the time and place of loss or damage. (G) Covered vehicles and/or contractors' equipment/unlicensed vehicles on or off premises (as per summary of values on file with the Insured). The Insurer shall not be liable* for more than the actual cash value iof the property at the time any loss or damage occurs and the loss or damage shall be ascertained or estimated according to such actual 'cash, value with proper deduction for depreciation. However, in no event shall the loss exceed what it would then cost to repair or replace the 'same with material of like kind and quality, nor the amount for which tle: Insured may be;liable. * Uni,less specified as replacement cost (new). If summary of values, provided by the Insured, for vehicles/contractors' equipment provides valuation based on 100% "replacement cost new", then recovery will be on the same basis. (H) Animals: The stated value as per schedule on file with the Insured. (I) Landscape, sand traps, tees, greens and athletic fields; the actual replacement cost of sod, shrubs, sand (pertaining to sand traps within 15 yards of greens), plants and trees; however the Insurer's liability for replacement of trees, plants and shrubs will be limited to the actual size of the destroyed plant, tree or shrub at the time of the loss up to a maximum size of 15 gallons per item. _ W IC.I.A.-PEPIP 2000 Declaration Page 18 Definitions: Wherever the,term "actual cash value" is used as respects real property or improvements! and betterment's in this clause, or elsewhere herein, lit ',shall mean replacement value less physical depreciation. The aforementioned valuations shall also be used for the purpose of the assessment adjustment clause of this Policy. 5) SPECIAL CONDITIONS: A) AUTOMATIC COVERAGE/REPORTING CONDITIONS Subject to the terms, conditions and limitations in Endorsement#18. It is understood and agreed that: (1) This Policy is automatically extended to cover all additional property as described in this Policy and associated Business Interruption / Extra' Expense which may be;purchased, leased, acquired or otherwise become at the risk of the Insured during the term of this Policy (2) This Insurer shall automatically cover such property and/or properties,'subject to all the terms and conditions of the Policy to which this clause is ;attached; provided, however, that if there shall be any other insurance covering such additional property this Policy shall not attach or provide coverage thereon until liability of all such other insurance shall have first been exhausted and shall then attach and cover only for its proportion of the excess of loss, if any, over and above the amount due from such other insurance, whether valid or invalid or by solvent or insolvent insurers. (3) It is understood and agreed as respects earthquake shock at Policy annual inception, automatic coverage applies for the peril of earthquake shock;for a period of 30 days from date of contractual requirement by any. bond, certificate of participation or any similar investment, for any new! locations where there is such a contractual requirement to provide earthquake shock coverage. Otherwise there is no Automatic Coverage for Earthquake Shock for any other new locations. II W.C.I.A.-PEPIP 2000 Declaration Page 19 rnvPT I ICFR1wn[,c\Wnr.cI nnn\wr14 i 6), DEFINITIONS: A) LOSS Means the loss by any peril or combination of covered peril(s) arising out of a single occurrence.' When the term applies to loss or losses from earthquake shock, flood, and/or windstorm, the following provisions shall apply: (1) WINDSTORM Each loss by windstorm shall constitute a single claim hereunder; provided, if more than one windstorm shall occur within any period of seventy-two (72) hours during the term of this Policy, such windstorm shall be deemed to be a single windstorm within the meaning thereof. The Insured may elect the moment from which each of the aforesaid periods of seventy-two (72) hours shall be deemed to have commenced but no two such seventy-two (72) hour periods shall overlap. The Insurer shall not be liable for any loss occurring before the effective date and timeof the Policy. The Insurer will be liable for any losses;occurring for a period of up to seventy-two (72) hours after the expiration of this Policy provided that the first windstorm loss or damage within that seventy-two (72) hours occurs prior to the date and time of expiration of this Policy. In the event of there being a difference of opinion between the Insured and the Insurer as to whether or not all windstorm losses sustained by the Insured during an elected period of seventy-two (72) hours arose out of, or was caused by a single atmospheric disturbance, the stated opinion of the United States Weather Bureau or comparable Authority in any other country or locality shall govern as to whether or not a single atmospheric disturbance continued throughout the period at the location(S) involved. i (2) FLOOD Each loss by flood shall constitute a single loss hereunder. (a) If any flood occurs within a period of the continued ,rising or overflow of any river(s) or stream(s) and the subsidence of same within the banks of such river(s) or stream(s); or I � (b) If any flood results from any tidal wave or series of tidal waves caused by any one disturbance; such flood shall be deemed to be a single occurrence within the meaning, of this Policy. W.C.IA.-PEPIP 2000 Declaration Page 20 Tnoor I icooIWnneummnewnnnonrrtn i , Should any time period referred to above extend beyond the expiration date of'this Policy and commence prior to expiration, the Insurer shall pay all such flood losses occurring during such period as if such period fell entirely within the term of. this Policy. The Insurer shall not be liable, however, for any loss caused by any flood occurring before the effective date and time of this Policy or commencing after the expiration date and time of this Policy. Flood shall mean a general condition of partial or complete inundation of normally dry land area from: (a) overflow of inland or tidal water; (b) unusual and rapid accumulation or run off of surface waters from any source. Flood shall also mean mudslide or mudflow, which is a river or flow of liquid mud caused by flooding as defined in a. or b. above. ' The definition of flood does not include ensuing loss or damage not otherwise excluded. (3) EARTHQUAKE SHOCK With respect to the peril of earthquake shock, any and all losses from this cause within a one hundred sixty-eight (168) hour period shall be deemed to be one loss. The Insured may elect the moment from which ' each of the aforesaid periods of one hundred sixty eight (168) hours shall be deemed to have commenced but no two such one hundred sixty eight (168) hour periods shall overlap. The Insurer shall not be liable for any loss caused by an earthquake shock occurring before the effective date and time of this Policy. The Insurer will be liable for any losses occurring for a period of up to one hundred sixty eight (168) hours after the expiration of this, Policy provided that the first earthquake shock loss or damage within that one hundred sixty eight (168) hours occurs prior to the date and time of the expiration of this Policy. In the event of there being a difference of opinion between the Insured and the ,Insurer as to whether or not all earthquake shock losses sustained by the Insured during an elected period of one hundred sixty eight (168) hours arose out of, or were caused by a single earthquake shock, the stated opinion of the National Earthquake Shock Information Service of the United States Department of the Interior or comparable - Authority:in any other country or locality shall govern as to whether or not a single earthquake shock continued throughout the period' at the locations involved. W.C.I.A.-PEPIP 2000 Declaration Page 21 , i The term earthquake shock is defined as: earth movement meaning natural faulting of land masses, but not including subsidence, landslide, rock slide, earth rising, earth sinking, earth shifting or settling unless as a direct result of such earth movement. The definition of earthquake shock does not include ensuing loss or damage not otherwise excluded. Further Earthquake Sprinkler Leakage is covered outside of the "Earthquake Shock" definition and subject to the basic peril deductible. (4) PERSONAL PROPERTY OF OTHERS: li Any prop! erty (other than real property) belonging to others fors which an Insured has assumed liability. This includes but is not limited to: • Articles of Clothing • Jewelry • Sound Equipment • Fine Arts (up to the sub-limit of unscheduled fine arts) • EDP ,,Media & Hardware • Valuable Papers • Portable Electronic Equipment • Employee Tools (5) IMPROVEMENTS AND BETTERMENTS: • Additions or changes made by an Insured/lessee at their own expense to a building they are occupying that enhance the building's value. • • W.C.I.A.-PEPIP 2000 Declaration Page 22 TDEF?TUSER\WDGS\WDGS\20001WCIA � I SECTION III INTERRUPTION OF BUSINESS EARNINGS/EXTRA EXPENSE AND RENTAL INCOME i' Subject to the terms, conditions and exclusions stated elsewhere herein, this Policy pr?vides coverage for: 1) i COVERAGE: (A) BUSINESS INTERRUPTION Against loss resulting directly from interruption of business, services or rental value caused by direct physical loss or damage, as covered by this Policy to real and/or personal property insured by this Policy, occurring during the term of this Policy. I I In the event of such loss or damage the Insurer shall be liable for the actual loss sustained by the Insured for gross earnings as defined herein and rental value as defined herein resulting from such interruption of business, services, :or rental value; less all charges and expenses which do not necessarily continue' during interruption of business for only such length of time as would be required with the exercise of due diligence and dispatch to rebuild, repair or replace such part of the property as has been damaged or destroyed, commencing with the date of such damage or destruction and not limited by the date of expiration of this Policy. Due consideration shall Ibe given to the continuation of normal charges and expenses including payroll expenses to the extent necessary to resume operations of the Insured with the same quality of service which existed immediately preceding the loss. (B) EXTRA EXPENSE I 1 This Policy is extended to cover the necessary extra expenses at any location as hereinafter defined; incurred by the Insured in order to continue as nearly as practicable the normal operation of the Insured's business following damage to or III destruction of real or personal property which is on premises owned, leased or occupied by the Insured. In the event of such damage or destruction, the Insurer it shall be liable for such necessary extra expense incurred for only such length of time as would be required with the exercise of due diligence and dispatch to rebuild, repair or replace such part of the property as has been damaged or destroyed commencing with the date of damage or destruction and not limited by II thlle date of expiration of this Policy (hereinafter referred to as the period of restoration). 1 I li i W.C.I.A.-PEPIP 2000 Declaration Page 23 T\DEPT„USER\WDGS\WDGS\2000\WCIA i With respect to Power Generating Facilities, Extra Expense shall also include any extra expense incurred resulting from the purchase of electrical power from any other power source subject to a $ —PER DECLARATION- Limit of Liability. However, this Policy shall not cover loss of Bonus Capacity Payments, performance Guarantee penalties or any other indirect or remote loss of whatever nature. , 2) EXTENSIONS OF COVERAGE: A) INGRESS/EGRESS This Policy is extended to insure the actual loss sustained during the period of time not exceeding four consecutive weeks when, as a direct result of a covered perils) by this Policy, ingress to or egress from property covered by this 'Policy is prevented. B) INTERRUPTION BY CIVIL AUTHORITY This Policy is extended to include the actual loss sustained by the Insured, as covered hereunderlduring the length of time not exceeding four consecutive weeks when, as a direct result of damage to or destruction of property by the covered peril(s), access to such described premises is specifically prohibited by order of civil authority. I C) DEMOLITION,AND INCREASED TIME TO REBUILD The Insurer shall, in the case of loss covered under this Policy, be liable also for loss to the interest;covered by the Policy, occasioned by the enforcement,of any local or state ordinance or law regulating the construction, repair or demolition of buildings or structures and in force at the time such loss occurs, which necessitates the demolition of any portion of the described building(s) not damaged by the covered peril(s). The Insurer shall also be liable for loss due to the additional period of time required for repair or reconstruction in conformity, with the minimum standards of such ordinance or law of the building(s) described in this Policy damaged by,a covered peril. THE INSURER SHALL NOT BE LIABLE UNDER THIS CLAUSE FOR: (1) More than the limit of liability as shown elsewhere in this Policy. (2) Any greater proportion of any loss to the interest covered by this Policy than the amount covered under this Policy on said interest bears to the total insurance and coverage on said interest, whether all such insurance contains this clause or not. w.c.i'A.-PEPIP 2000 Declaration Page 24 llf]FPT I ISFR\WnrzS\WI7nS\2nnn\WCIA D) NON PRODUCTIVE PROPERTY If the Real and/or Personal Property sustaining loss or damage does not produce an income the actual loss sustained shall be the continuing fixed charges and expenses directly attributable to such non productive property. E) CONTINGENT BUSINESS INTERRUPTION AND/OR EXTRA EXPENSE AND/OR RENTAL VALUE Subject to the terms, conditions and exclusions of this Policy to which this 111 extension is attached and to the following conditions, the business interruption, extra expense, rental value coverage provided by this Policy is extended to cover loss directly resulting from physical damage to property of the type not otherwise excluded by this Policy at supplier or customer locations (whether such location is owned by the Insured or not) that prevents a supplier of goods and/or services to the Insured from supplying such goods and/or services, or that prevents a recipient of goods and/or services from the Insured from accepting such goods, and/or services. F) EXTENDED PERIOD OF INDEMNITY EXTENSION Subject to the terms, conditions and exclusions of the Policy to which; this extension is attached, the business interruption and/or extra expense and/or rental value coverage provided by this Policy is extended to provide coverage for the additional length of time required to restore the business of the Insured to the condition that would have existed had no loss occurred commencing on either; (1) the date on which the Insurer's liability would otherwise terminate or; (2) the date on which rebuilding, repairing or replacement of such property as has been lost, damaged or destroyed is actually completed, whichever is later. The Insurer's liability under this extension shall terminate no later than twelve (12) months from the commencement date set forth above. j i W.C.I.A.-PEPIP 2000 Declaration Page 25 71DEPT USER\WOGS\WDGS\2000\WCIA I i I 3) EXCLUSIONS: SPECIAL EXCLUSIONS 1) The Insurer 'shall not be liable for any increase of loss which1 may be occasioned by the suspension, lapse, or cancellation of any lease or license, contract or Order, unless such suspension, lapse, or cancellation, results directly from the interruption of business and, then this Insurer shall only be liable for such loss as affects the Insured Insured's earnings during and limited to, the'period of indemnity covered under this Policy. 2) Media for electronic data processing: applicable only to the loss of earnings resulting from damage to or destruction of media for, or programming records pertaining to, electronic data processing or electronically controlled equipment, including data thereon by the covered peril(s). The length,of time for which the Insurer shall be liable hereunder shall not exceed: a) Thirty (30) consecutive calendar days; or b) The length of time that would be required to rebuild, repair Or replace such property herein described as has been damaged or destroyed (other than media for, or programming records pertaining to, electronic data processing or electronically controlled equipment, including data thereon);1 whichever is the greater length of time. 4) LOSS PAYMENT VALUATION: A) EXPENSES TO REDUCE LOSS: This Policy also covers such expenses as are necessarily incurred for the purpose of reducing loss under this section (except incurred to extinguish a fire); but in no event to exceed the amount by which loss is thereby reduced. I � P W.C.I!A.-PEPIP 2000 Declaration Page 26 I i I 5), CONDITIONS APPLICABLE TO BUSINESS INTERRUPTION/EXTRA EXPENSE AND RENTAL VALUE I I If the Insured could reduce the loss resulting from the interruption of business: (1) by complete or partial resumption of operation of the property whether or not such property, be lost or damaged, or; (2) by making use of merchandise or other property at the Insureds location or elsewhere; such reduction shall be taken into account in arriving at the amount of the loss hereunder. 6)1 DEFINITIONS: A) GROSS EARNINGS "Gross Earnings" is defined as the sum of: (1) total net sales and; 1 (2) other earnings derived from the operation of the business less the cost of; (3) merchandise sold including packaging materials and; (4) materials and supplies consumed directly in supplying the service(s) sold by the Insured, and; (5) service(S) purchased from outside (not employees of the Insured) for resale that does not continue under contract. No other cost shall be deducted in determining gross earnings. In determining gross earnings, due consideration shall be given1 to the experience of the business before the date of loss or damage and the probable experience thereafter, had no loss occurred. I I W.C;I.A.-PEPIP 2000 Declaration Page 27 B) MERCHANDISE I Shall be understood to mean, goods kept for sale by the Insured which are not the products of manufacturing operations conducted by the Insured. C) EXTRA EXPENSE The term "extra expense", whenever used in this Policy, is defined as the excess (if any) of the total cost incurred during the period of restoration chargeable to the operation of the Insured's business over and above the total cost that would normally have been incurred to conduct the business during the same period had no damage or destruction occurred. Any salvage value of property obtained for temporary use during the period of restoration, which remains after the re'sum'ption of normal operations, shall be taken into consideration in the adjustment, of any loss hereunder. D) RENTAL VALUE The term "rental value" is defined as the sum of: (1) the total' anticipated gross rental income from tenant occupancy as furnished and equipped by the Insured, and; (2) the amount of all charges which are the legal obligation of the tenant(s) and which would otherwise be obligations of the Insured, and; (3) the fair rental value of any portion of said property which is occupied by the Insured, and; (4) any amount in excess of (1), (2) and (3) (above) which is an obligation due under the terms and conditions of any revenue bond, certificate of participation or other financial instrument. In determining rental value, due consideration shall be given to the experience before the date of loss or damage and the probable experience thereafter had no loss occurred. (E) PERIOD OF RESTORATION The period during which business interruption and or rental interruption applies will begin on the date direct physical loss occurs and interrupts normal business operations and ends on the date that the damaged property should have been repaired, rebuilt or replaced with due diligence and dispatch (i.e. "normallspeed). Pane 28 W.C.IA.-PEPIP 2000 Declaration I ' SECTION IV GENERAL CONDITIONS 1); PERILS COVERED Subject to the terms, conditions and exclusions stated elsewhere herein, this Policy provides insurance against all risk of direct physical loss or damage occurring during the period of this Policy. 2) PERILS EXCLUDED This Policy does not insure against any of the following: A) Loss or damage caused by or resulting from moths, vermin, termites, or other insects, inherent vice, latent defect, faulty workmanship, wear, tear or gradual deterioration,'contamination, rust, wet or dry rot, mold, unless caused by a peril not otherwise excluded, or loss or damage by normal settling, shrinkage or expansion in building or foundation. B) Delay or loss of markets (this exclusion shall be inapplicable to the extent inconsistent with any time element coverage provided elsewhere herein). C) Breakdown or derangement of machinery and/or steam boiler explosion, unless loss not otherwise excluded herein ensues and then only for such ensuing loss., (This exclusion applicable only to boilers owned or controlled by Insured.) This exclusion does not apply to data processing equipment or media. D) Loss or damage caused by or resulting from misappropriation, conversion, inventory shortage, unexplained disappearance, infidelity or any dishonest act on the part of the Insured, it's employees or agents or others to whom the property may be entrusted (bailees and carriers for hire excepted) or other party of interest. E) Loss or damage caused by or resulting from electrical injury or disturbance from artificial causes to electrical appliances, devices of any kind or wiring, unless loss not otherwise excluded herein ensues and then only for such ensuing loss. This exclusion does not apply to data processing equipment or media. 1 F) Loss or damage to personal property resulting from shrinkage, evaporation, loss of weight, leakage, breakage of fragile articles, marring, scratching, exposure to light or change in color, texture or flavor, unless such'loss is caused directly by fire or the combating thereof, lightning, windstorm,, hail, ' explosion, strike, riot, or civil commotion, aircraft, vehicles, breakage of pipes or apparatus,i sprinkler leakage, vandalism and malicious mischief, theft, attempted theft, flood or earthquake shock (earthquake shock shall apply only to locations that are scheduled for earthquake shock. This applies only to California.). G) Loss or shortage disclosed upon taking inventory or mysterious disappearance of property (except property in the custody of carriers or bailees for hire). I-I) Loss or damage caused by rain, sleet or snow to personal property in the open (except in the custody of carriers or bailees for hire). I) Loss caused directly or indirectly, by: (1) hostile or warlike action in time of peace or war, including action in hindering, combating or defending against an actual, impending or expected'attack (a) by any government or sovereign power (de jure or de facto), or by any Authority maintaining or using military, naval or air forces; or { (b) by military, naval or air forces; or I (c) by an agent of any such government, power, authority or forces; (2) any weapon of war employing atomic fission or radioactive force' whether in time o(peace or war; (3) insurrection, rebellion, revolution, civil war, usurped power, or action taken by lgovernmental Authority or hindering, combating or defending against such an occurrence, seizure or destruction under quarantine or customs regulations, confiscation by order of any government or public authority,;or risks of contraband or illegal transportation or trade. J), Loss by nuclear reaction or nuclear radiation or radioactive contamination, all whether controlled or uncontrolled, and whether such loss be direct or indirect, proximate or remote, or be in whole or in part caused by, contributed to, or aggravated by the covered peril(s) in this Policy; however, subject to the foregoing and ,all provisions of this Policy, direct loss by fire resulting from nuclear reaction or nuclear radiation or radioactive contamination is insured by this Policy. ill I I ' ' I 3)i TERRITORIAL LIMITS This Policy insures property within the United States. Personal property while in transit therein is extended to worldwide coverage. 4) REINSTATEMENT Any reduction in the amount insured hereunder due to payment of any loss or losses shall be automatically reinstated for the balance of the term of this contract except as respects,to those perils that are subject to annual aggregate limlitation. 5) F.O.B. SHIPMENTS I This Insurer shall be liable for the interest of the Insured at sole option of the Insured, the interest of the consignee in merchandise which has been sold by the Insured under terms of F.O.B. point of origin or other terms usually regarded as terminating shipper's' responsibility short of point of delivery. 6) PROTECTION AND PRESERVATION OF PROPERTY I In case of actual or imminent physical loss or damage of the type insured against by this Policy, the expenses incurred by the Insured in taking reasonable and necessary actions', for the temporary protection and preservation of property insured hereunder ;shall be added to the total physical loss or damage otherwise • y''' recoverable under the Policy and be subject to the applicable deductible, and without increase in the limit provisions contained in this Policy. 7) BREACH OF CONDITIONS If any breach of a clause, condition or warranty of this Insurer contract or Policy shall occur prior to a loss affected thereby under this Policy, such breach shall not void the Policy nor avail the Insurer to avoid liability breach shall exist at the 'time of such loss under this contract or Policy, and be a contributing factor to the loss for u which claim is presented hereunder, it being understood that such breach of clause or condition is applicable only to the property affected thereby. Notwithstanding the foregoing, if the Insured establishes that the breach,;whether contributory or not,; occurred without its knowledge or permission or beyond its control, such breach shall not prevent the Insured from recovering under' this Policy. w r I IG_PFPIP 7nnn narlaratinn Pane 31 , Ili II ill 8)', PERMITS AND PRIVILEGES 4 I Anything in the printed conditions of this Policy to the contrary notwithstanding, permission is hereby granted: jl A) to maintain present and increased hazards; , B) to make additions, alterations, extensions, improvements and repairs, to delete, demolish, construct and reconstruct, and also to include all 'materials, equipment and supplies incidental to the foregoing operations of the property covered hereunder, while in, on and/or about the premises or adjacent thereto; C) for such use of the premises as usual and/or incidental to the business as conducted therein and to keep and use all articles and materials usual and/or 1 incidental to said business in such quantities as the exigencies i of the ' business require; D) to be or become vacant or unoccupied without limit of time. Nor shall this'Policy be prejudiced by: E) error in stating the name, number, street, or location of any building(s) and contents covered hereunder, or any error or omission involving the name or title of the Insured; F) any act or neglect of the owner of the building, if the Insured hereunder;is not l the owner, or of any occupant of the within described premises other than the Insured, when such act or neglect is not within the control of the 'Insured, named herein; or G) by failure of ;the Insured to comply with any of the warranties or conditions endorsed hereon in any portion of the premises over which the Insured has no control. 9 PROTECTIVE SAIEGUARDS The Insured shall ;exercise due diligence in maintaining in complete working order all protective safeguard equipment and services. it CAI r I A OCI310 onnn ne..in.mnn., Pans fl2 I I I 10) NOTICE OF LOSS In the event of loss or damage insured against under this Policy, the Insured shall give immediate notice thereof to ROBERT F. DRIVER ASSOCIATES, P.O. Box 6450, Newport Beach, CA 92658-6450 (949) 756-0271, FAX (949) 756-27'13 of such loss. The loss shall inj turn be reported to Maxson Young Associates, Inc.,, One Sansome Street, Suite 950, San Francisco, California 94104 who is hereby authorized to represent the Insurer in the investigation and adjustment of any loss or damage under this Policy at the expense of the Insurer and without regard to the amount of loss or damage and/or applicable deductible if any. All losses incurred by San Diego Pooled Insurance Program Authority (SANDPIPA) and its members, as well as the San Diego Unified Port District; shall be reported to Walsh Adjusting Company, 3547 Camino Del Rio South, Suite D, it San Diego, CA 92108 who is hereby authorized to represent the Insurer in the investigation and adjustment of any loss or damage under this Policy at the expense of the Insurer and without regard to the amount of loss or damage and/or applicable deductible, if any. All losses incurred by LAC-CAL shall be reported to McLarens Toplis, 5670 Wilshire Blvd. 20th Floor, Los Angeles, CA 90036 who is hereby authorized to represent the Insbrer in the investigation and adjustment of any loss or damage under this Policy at the expense of the Insurer and without regard to the amount of loss or damage and/or applicable deductible, if any. For Washington 1Cities Insurance Authority and Washington Schools Risk Management Pool, in the event of loss or damage that falls within the reporting requirements, the,' Insured will give immediate notice to the Insurer. IFor;those losses reported to the Insurer, the Insured agrees to use Crawford-THG International Loss Adjusters, 19109 — 36th West, Suite 105, Lynnwood, Washington 980316, for the investigation and adjustment of the loss. The Insured will retain responsibility for the direction of the investigation and the overall El adjustment of the loss. However, Insurers'. reserve the right to utilize other adjusting firms if and when they feel it necessary. 1 i) PROTECTION OF PROPERTY it • The Insured shall ,protect the property from further damage forthwith, separate the damaged and undamaged personal property stored in the best possible, order and furnish a complete inventory of the destroyed, damaged and undamaged property. 1 The expense for same are covered expenses under this Policy. W.C.IA.-PEPIP 2000 Declaration Page 33 12) ARBITRATION OF VALUE In case the Insured and the Insurer shall fail to agree as to the amount of loss, then, on the written demand of either, each shall select a competent, and disinterested appraiser and notify the other of the appraisers selected,. The appraiser shall first select a competent and disinterested umpire, and 'failing to agree upon such umpire, then, on request of the Insured or the Insurer such umpire shall be selected by judge of a court of record in the state in which the property covered is located. The appraisers shall as soon as practicable, appraise the loss stating separately the loss of each item and failing to agree, shall submit their differences only to the umpire. An award,in writing so itemized, of any two appraisers when filed with the Insurer shall determine the amount of loss. The party selecting him shall pay'each appraiser and the expenses of appraisal and umpire shall be paid by the, parties equally. 13,) PROOF OF LOSS; The Insured shall render a signed and sworn proof of loss as soon as practical after the occurrence of a loss, stating the time, place and cause of loss, the interest of the Insured and of all others in the property, the value thereof land the amount of loss or damage thereto. 14) SUBROGATION In the event of any loss payment under this Policy, the Insurer, shall be subrogated to all the Insured's rights of recovery thereof against any person or organization and the Insured shall execute and deliver instruments and papers and do whatever else is necessary to secure such rights As respects subrogation it is agreed that, after expenses incurred in subrogation are deducted, the!Insured and the Insurer shall share proportionately to.the'extent of their respective interests as determined by the amount of their net loss. Any ,amount thus found to be due to either party from the other shall be paid promptly. This Policy shall not be prejudiced by agreement made by the Insured releasing or waiving the Insured's right to recovery against third parties responsible for the loss, !under the following circumstances only: 1(1) If made before the loss has occurred, such agreement may run in favor'of any third party; 1(2) If made after loss has occurred, such agreement may run only in favor of a third party falling within one of the following categories at the time of loss: Pant.. gd (a) a third party covered under this Policy; or (b) a corporation, firm, or entity (1) owned or controlled by the Insured or in which the Insured owns capital stock or other proprietary interest, or (2) owning or controlling the Insured or owning or controlling •apital stock or other proprietary interest in the Insured (3) whether made before or after loss had occurred, such agre-ment must release or waive the entire Right of Recovery of the named Insured against such Third party or (4) a Tenant of the Named Insured. 1 ) ANCELLATION his Policy may be canceled by the Insured at any time by written noti e or ,I %urrender of this Policy. This Policy may also be canceled by or on behalf •f the Insurer by delivering to the Insured or by mailing to the Insured, by regis ered, (ertified or other first class mail at the Insured's address as shown in this 'olicy, ritten notice, not less than ninety (90) days prior to the effective d.te of t ancellation. The mailing of such notice as aforesaid shall be sufficient prof and this Policy and shall terminate at the date and hour specified in such notice. otwithstanding what has been stated above, however, should this Poli y be anceled for non-payment of assessment, the Insurer shall only be required t give ;h (he Insured ten (10) days notice. I is further agreed that this Insurer will abide by all the laws regulating thel non- enewal or cancellation of Insured instituted by the State Department of Incur nce, egardless of whether or not the Insurer is an admitted carrier in the State aving j risdiction over the named insured. I this insurance in, total shall be cancelled by the Insured, the Insurer shall etain t e customary short rate proportion of the premium hereon. If the Insured elects to lance! coverage mid-term, then such cancellation shall be handled on a prb-rats oasis without short'rate penalty. I the event of cancellation the aggregate retention and specific limit amoun I shall ee applied pro rata'with the balance, if any, to be paid to the Insured. "ayment or tender of any unearned premium by the Insurer shall not be cordition i�recedent to the effectiveness of cancellation but such payment shall be made •rthwith. 'IBC • 1nt r I a_•DDID onnn II ancellation shall not effect coverage on any shipment in transit or d to of ancellation. Coverage will continue in full force until such property is safely ,.elivered and accepted at place of final destination. 16) BANDONMENT here shall be no abandonment to the Insurer of any property. 17) £SSIGNMENT ssignment or transfer of this Policy shall not be valid except with the ritten onsent of the Insurer. 18) .ALVAGE hen, in connection with any loss hereunder, any salvage is received 'p for or .ubsequent to the, payment of such loss, the loss shall be figured on the ba.is on hich it would have been settled had the amount of salvage been known :t the ime the loss was originally determined. I i 19) •THER INSURANCE 'ermission is hereby granted to the Insured to carry more specific insuran e on :ny property covered under this Policy. This Policy shall not attach or ibecome nsurance upon any property which at the time of loss is more spec fically •escribed and covered under any other policy form until the liability of such other nsurance has first been exhausted and shall then.cover only the excess Hof value •f such property over and above the amount payable under such other insurance, hether collectible or not. This Policy, subject to its conditions and lirriit tions, .hall attach and become insurance upon such property as respects any peril not overed by such other insurance and not otherwise excluded herein. n the event of a loss that is covered by other insurance, wherein this Policy is -xcess of any amount paid by such other insurer shall be applied to the ded� ctible :mount stated elsewhere. Should the amount paid by such other iris rance -xceed these deductibles, no further deductibles shall be applied under this "olicy. i Ali W c I A PFPIP'nnn Ilerinratinn Pace 36 I j iN 20) XCESS INSURANCE rermission is granted the Insured to maintain excess insurance over the li it of liability set forth in this Policy without prejudice to this Policy and the exist ce of .uch insurance, if any, shall not reduce any liability under this Policy. Also it is nderstood and agreed as respects earthquake shock or flood, that in the ev nt of 1! eduction or exhaustion of the aggregate limits of liability under the unde lying !I "olicy(s) by reason of loss(es) thereunder, this Policy shall: (a) in the event of reduction, pay out excess of the reduced underly'n limit and (b) in the event of exhaustion, continue in force as the underlying Polic . 21) -IGHT TO REVIEW RECORDS FOLLOWING AN INSURED LOSS li he Insured as often as may be reasonably required, shall submit and'so ar as ithin their power, cause all other persons interested in the property or empl yees o submit to examination under oath by any person named by the Insurer'r lative o any and all matters in connection with a claim, and produce for examinati n all ,00ks of account,: bills, invoices and other vouchers or certified copies.the eof if originals be lost, at such reasonable time and place as may be designated •y the nsurer or their representatives and shall permit extracts and copies thereof to be ade. 22) ONCEALMENT AND FRAUD I his entire Policy shall be void, if whether before or after a loss, the Insure• has illfully concealed or misrepresented any material facts or circums ance oncerning this Policy of the subject thereof, or the interest of the Insured th-rein, ' or in case of any fraud or false swearing by the Insured relating thereto. 231) IBERALIZATION f during the period that coverage is in force under this Policy, or within fo y-five 45) days prior to the inception date thereof, on behalf of this Insurer there be dopted, or filed with and approved or accepted insurance authorities, all in !Ir onformity with law, any changes in the form attached to this Policy by which this orm of Policy could be extended or broadened without increased asses..ment if harge by endorsement or substitution of form, then such extended broadened "olicy shall inure to the benefit of the Insured hereunder as though such -ndorsement or substitution of form had been made. t is hereby agreed that the terms and conditions of this form are substitiut-d for 'I hose of the Policy to which it is attached, the provision of the latter being,wai ed. I i , I w.c.I.A.--EPIP 2000 Declaration Page 37 24,) OSS PAYABLE CLAUSE I the event of a loss occurring under this Policy, the loss'payment will be maide in :vor of the Insured(s) submitting the claim alone, and not to the program na e. 25) ' ULL WAIVER he terms and conditions of this form and endorsements attached thereto are •.ubstitute for those of the Policy to which it is attached, all terms, conditions,a d endorsements of latter being waived. 26) "EPORT OF VALUES/PREMIUM 'remium shall be computed by applying the agreed rate against values ommensurate with the valuation clause. Values declared to the Insurer are r •remium purposes only and shall not limit the recovery under any area of overage afforded by this Policy. • i ' I li w.c.I.A.--EPIP 2000 Declaration Page 38 ' � I it SECTION V DATA PROCESSING MEDIA This -olicy is extended to provide coverage for loss or damage to data proc-ssing media: 1) OVERAGE: I • ) PROPERTY COVERED Active data processing media, being property of the Insured or prop-rty of others for which the Insured may be liable. :) PERILS COVERED This extension insures against all risks of direct physical loss or damage to the property covered except as hereinafter provided.' 2) XTENSIONS OF COVERAGE: oss as a result of a computer virus subject to a $5,000,000 any one occu rence :nd in the annual aggregate sub limit of liability. 3) XCLUSIONS: • ) PROPERTY EXCLUDED This extension does not insure accounts, bills, evidences of debt, va uable papers, records, abstracts, deeds, manuscripts or other documents exc-pt as they may be converted to data processing media form, and then onlY i that form, or any data processing media which cannot be replaced with iot er of like kind and quality. :) PERILS EXCLUDED This extension does not insure against loss, damage or expense resulting from or caused directly or indirectly by any of the following: (1) Data processing media failure or breakdown or malfunction of Ih data processing system including equipment and component parts whil said media is being run through the system. 1A/(`I A _-CDID onnn Pane 1Q III � I (2) Dryness or dampness of atmosphere, extremes of temPer:ture, corrosion, or rust unless directly resulting from physical damage o the data processing system's air conditioning facilities caused by a pe it not excluded by the provisions of this Policy. (3) Delay, loss of market, loss of use or interruption of business, except as provided for elsewhere in this Policy. (4) Inherent vice, wear, tear, gradual deterioration or depreciation. (5) Any dishonest, fraudulent or criminal act by the Insured, a p rtner therein or an officer, director or trustee thereof, whether acting al ne or in collusion with others. f (6) War risks or nuclear risks as excluded in the Policy to which this extension is attached. Exclusions 1, 2, and 4 above do not apply to ensuing loss or damage unless another exclusion applies. 4);j OSS PAYMENT BASISNALUATION: he limit of this Insurer's liability for loss or damage shall pot exceed: A ) The amount per article specified at the time of loss, said amount bei g the agreed value.thereof for the purpose of this Policy. :) As respects all other property, the full reproduction cost of the prope y as detailed elsewhere in this Policy; if not replaced or reproduced, blank v.lue of media; all subject to the applicable limit of liability 'stated in the sched le of values. 5). .PECIAL CONDITIONS: one 6)� 'EFINITIONS: ) ACTIVE DATA PROCESSING MEDIA: Wherever used in this contract, shall mean all forms'of converted data' and/or program and/or instruction vehicles employed in the Insured's data processing operation. W.CIA_-"EPIP 2000 f]arlaratinn PanA an :) COMPUTER VIRUS: A computer program whose sole design and intent is to disrupt, destroy or otherwise cause physical damage to other valid and useful computer software. W C.I.A.PEPIP 2000 Declaration Pacie 41 I{ 1 SECTION VI FINE ARTS FLOATER 1) C Ia VERAGE: 'i T e provisions and stipulations of this Section shall apply only to the property overed h:reunder and none of the provisions and stipulations of this Policy, includ ng any of er endorsement made a part thereof, except the cancellation provision, s,h_II apply to this Section VI. If any of the property covered by this Section is also covered under an, other p 'visions of the Policy of which this Section is made a part, those provisions are h:reby amended to exclude such property, the intent being that the coveragr under I' th s Section is the sole coverage on such property. itT is Section is extended to cover fine arts, which are the property of the Insure. or the p •perty of others in the custody or control of the Insured while on exhi•ition or of erwise within the limits of the Continental United States '. � I A PROPERTY COVERED (1) Objects of art of every kind and description, the property of the In ured, the property of others and property in which the Insured shall ave a fractional ownership interest which are owned by or have been I-ased, loaned, rented or otherwise made available to the Insured. "Propeirt " shall mean paintings, drawings, etchings, prints, rare ADooks, manuscripts, rugs, tapestries, furniture, statuary and all other bonafide works of art and other objects of rarity, historic value, cultural interest or artistic merit, which are part of the collections of the Insured, or in the care, custody or control of the Insured, and their frames, glazing and shadow boxes. (2) Objects of art, and property incidental thereto, the property of they I sured, or of others for which the Insured may be liable 'and while such pro erty is on or away from the Insured's premises in accordance with the terms and conditions of this Policy. W.C.I.A.-P:PIP 2000 Declaration Page 42 T\DEPT'USE'\WDGS\WDGS120001WCIA I I y I B) THIS FLOATER INSURES AGAINST All risks of loss of or damage to the above described property except as hereinafter provided. I I ' C) "WALL TO WALL" ("NAIL TO NAIL") COVERAGE This Section covers the Insured's property on a "Wall to Wall" ("Nail tQ Nail") basis, or domicile to domicile basis, as applicable, from the time said pro erty is removed from its normal repository incidental to shipment until returned thereto or other point designated by the owner or owner's agent prior to return sh pment, including while in transit to or from points of consolidation or deconsol dation, packing, repacking or unpacking, while at such locations during such pr cesses or awaiting shipment. Coverage shall terminate upon arrival of the covered property at the final destination designated by the owner or owner's agent, or upon expiration of this Policy, whichever may occur first, except that expiration of this Policy, siall not prejudice coverage of any risk then in transit. . i I 2) E TENSIONS OF COVERAGE: I y � ',u None 3) E CLUSIONS: A Loss or damage occasioned by: wear and tear, gradual deterioration, f nsects, vermin, inherent vice or damage sustained due to and resulting fr m any repairing, restoration or retouching process; B Loss or damage caused by or resulting from: (1) Hostile or warlike action in time of peace or war, including a tion in hindering, combating or defending against an actual, impending or e pected attack; (a) by any government or sovereign power (delure or de facto), or by any authority maintaining or using military, naval, or air forces; or (b) by military, naval or air forces; or I (c) by an agent of any such government, power, authority or forces; h I I 'I I it I W.C.I.A.-PE-IP 2000 Declaration Page 43 T\DEPT USE''\W DGS\W DGS\2000\WCIA (2) Any weapon of war employing atomic fission or radioactive force wh ther in time of peace or war; � I I (3) Insurrection, rebellion, revolution, civil war, usurped power, or actin taken by governmental authority in hindering, combating or defending gainst such an occurrence, seizure or destruction under quarantine or'i customs regulations, confiscation by order of any government or public auth rity, or risks of contraband or illegal transportation or trade. C) Loss by nuclear reaction or nuclear radiation or radioactive contaminat on, all whether controlled or uncontrolled and whether such; loss be direct or, indirect, proximate or remote, or be in whole or in part caused by, contributed to, or ; aggravated by the covered perils covered against in this endorsement; h wever, subject to the foregoing and all provisions of this endorsement, direct loss by fire resulting from nuclear reaction or nuclear radiation or radioactive conta ination is covered against by this endorsement. D) Any dishonest, fraudulent or criminal act by the Insured, a partner th,ereih or an officer, director or trustee thereof, whether acting alone or in collusidn with others. 4) L•SS PAYMENT BASIS/VALUATION: VALUATION The valuation 'of each article of property covered by this Section s all be determined as follows: (1) Property of the Insured shall be covered for and valued at the curr nt fair market value of each article indicated on the books and records of the Insured prior to loss, according to the Insured's valuation of each object covered. (2) Property of others loaned to the Insured and for which the Insured may be legally liable, or which the Insured has been instructed to insure, hall be covered for and valued at the amount agreed upon for each article by the Insured and owner(s) as recorded on the books and records of the nsured prior to loss. I � (3) Otherwise; in the absence of recorded current fair market values or agreed values for each article covered, the Insurer shall not be liable beyond the fair market value of the property at the time any loss or damage occur . Said value shall be ascertained by the Insured and the Insurer or, if the. differ, then the amount of value or loss shall be determined as provide• in the following appraisal clause: W.C.I.A.-PE•'IP 2000 Declaration Page 44 TIDEPT'USER WDGSIWDGS120001WCIA I 5) I S'ECIAL CONDITIONS: (1) Misrepresentation and Fraud: This entire Section shall be void if, whether before 1. or after a loss, the Insured has concealed or misrepresented any material fact or circumstance concerning this Policy or the subject thereof, or the interest of the Insured therein, or in case of any fraud or false swearing by the Insured r-lating thereto. (2 Notice of Loss:. The Insured shall as soon as practicable report in writing to the Insurer or its agent every loss, damage or occurrence which may give ri•e to a claim under this Section and shall also file with the Insurer or its agent within ninety (90) days from the date of discovery of such loss, damage or occu rence, a detailed sworn proof of loss. (3 Examination under Oath: The Insured, as often as may be reasonably 're•uired, shall exhibit to any person designated by the Insurer all that remains of any property herein described, and shall submit, and insofar as is within its power cause its employees, Insured and others to submit to examination under oath by any person named by the Insurer and subscribe the same; and, as often .:s may be reasonably required, shall produce for examination all writings, books of account, bills, invoices and other vouchers, or certified copies thereof if olginals be lost, at such reasonable time and place as may be designated by th,e Insurer or its representative and shall permit extracts and copies thereof to be made. No such examination under oath or examination of books or documents, nor ny act of the Insured or any of its employees or representatives in connection any the investigation of any loss or claim hereunder, shall be deemed a waiver of any defense which the Insured might otherwise have with respect to any oss or claim, but all such examinations and acts shall be deelmed to have been ade or done without prejudice to the Insurer's liability. (4 Settlement of Loss: All adjusted claims shall be paid or made good to the Insured within sixty (60) days after presentation and acceptance of satisfactory proof of interest and loss at the office of the Insurer. No loss shall be •aid or made good if the Insured has collected the same fromlothers. (5 No Benefit to Bailee: This Section shall in no way inure directly or indir-ctly to the benefit of any carrier or other bailee. ' I p I I i W.C.I.A.-PE'•IP 2000 Declaration Page 45 TDEPT,USE•WDGS\WDGS12000\WCIA 1 (61 Subrogation or Loan: If in the event of loss or damage the Insured shall cquire any right of action against any individual, firm or corporation for loss of, or damage to, property covered hereunder, the Insured will, if requested by the ,s Insurer, assign and transfer such claim or right of action to the Insurer or, at the Insurer's option, execute and deliver to the Insurer the customary form of loan i° receipt upon receiving an advance of funds in respectlof the loss or dama e; and will subrogate the Insurer to, or will hold in trust for the Insurer, all such r ghts of action to the extent of the amount paid or advanced, and will permit su t to be brought in the Insured's name under the direction ofland at the expens of the Insurer. ! (7) Loss Clause: Any loss hereunder shall not reduce the amount of this Section, except in the event of payment of claim for total loss of an item spelcifically scheduled hereon. If no claim is paid for total loss of one or more scheduled .' items, the unearned premium applicable to such items will be refundle to the Insured or applied to the premium due on item(s) replacing those on w ich the claim was paid. (81 Protection and Preservation of Property: In case of actual or imminent physical loss or damage of the type insured against by this Policy, the expense ihcurred by the Insured in taking reasonable and necessary, actions for the temporary '`' protection and preservation of property insured hereunder shall be added to the total physical lbss or damage otherwise recoverable under the Policy nd be subject to the applicable deductible and without increase in the limit pr 4visions contained in this Policy. j (91 Suits: No suit, action or proceeding for the recovery of any claim under this Section shall be sustainable in any court of law or equity unless thee seme be commenced within twelve (12) months next after discovery by the Insure of the occurrence which gives rise to the claim, provided however, that if by the laws of the state within which this Section is issued, such limitation is invalid, t en any it such claims shall be void unless such action, suit or proceeding be com enced :, within the shortest limit of time permitted by the laws of such state. 1 (1 I) Appraisal: If the Insured and the Insurer fail to agree as to the amount of loss, each shall on the written demand of other, made within sixty (60) da s after receipt of proof of loss by the Insurer, select a competent and disinterested appraiser, and the appraisal shall be made at a reasonable time and pla e. The appraisers shall first select a competent and disinterested umpire, and filing for fifteen (15) days to agree upon such umpire, then on the request of the Insured ! or the Insurer, such umpire shall be selected by a judge of a court of redo d in the state in which such appraisal is pending. The appraisers shall then appr ise the loss, stating separately the actual cash value at the time of loss and the amount of loss, and failing to agree shall submit their differences to the umpire. An award in writing of any two shall determine the amount of loss. The Insu ed and the Insurer shall each pay their chosen appraiser and shall bear equally the other expenses of the appraisal and umpire. The Insured shall not be held to have waived any of its rights by any act relating to appraisal. 1 III W.C.I.A.-PE-IP 2000 Declaration Page 46 T\DEPT,USE'\WDGS\WDGS\2000\WCIA ' (1 ) Civil Authority: Property covered under this Section ;against the peril ;of fire is also covered against the risk of damage or destruction! by Civil authority during a conflagration and for the purpose of retarding the same; provided that peither such conflagration nor such damage or destruction is caused or contribute to by a peril otherwise excluded herein. (1 :) Conformity to Statute: Terms of this Section that are in conflict with the s atutes of the state wherein this Section is issued are hereby amended to con rm to such statutes. I (1 ;) Changes: Notice to any agent or knowledge possessed by any agent or y any other person shall not effect a waiver or a change in any part of this Se tion or stop the Insured from asserting any right under the ;terms of this Secti n, nor shall the terms, of this Section be waived or changed except by endor ement issued to form a part of this Section. (1 ,1 Additional Covered Party(ies): The owner and owners defined as assoc ations, corporations, firms, institutions, museums, persons and others who wn or li control collections, objects or articles who make them available to they Insured, and temporary borrowers or custodians (but not carriers, packers or ship ers) of property covered, are additional Insured(s) hereunder, but only as 1 r spects coverage afforded said Insured's property. (1 Packing: It is agreed by the Insured that the property covered hereunder be packed and unpacked by competent packers. (1 ;•) Other Insurance: This fine arts floater Section is excess coverage over any other valid and collectible insurance which may apply to any objects of art fo- which coverage would apply under this Policy. (1 ') Pair And Set: In the event of the total loss of any article or articles whicl are a part of a set, the Insurer agrees to pay the Insured the full amount of the value of such set and the Insured agrees to surrender the remaining article or a 'ides of the set to the Insurer. I i 1 W.C.I.Q.-PE•IP 2000 Declaration Page 47 TDEPT1 USE'\W13GS\WDGS12000\WCIA 6) DE INITIONS: I Fin- Arts includes but is not limited to: Pa ntings, rare books, manuscripts, pictures, prints, etchings, drawings, tapestries, br.nzes, statuary potteries, porcelains, marbles and other bonafide works jof art or ite s of rarity or historical value of the Insured or in their care, custody or ontrol. 1 W.C.I.A.-PE-IP 2000 Declaration Page 48 T\DEPT USE'\WDGS\WDGS12000\WCIA SECTION VII EXTRA EXPENSE ELECTRONIC DATA PROCESSING • 1) "OVERAGE: Ti is Policy insures against the necessary extra expense as hereinafter defined, i curred by the Insured in order to continue, as nearly as practicable the normal operation of its business, immediately following damage'to or destruction or the d:ta processing system including equipment and component parts thereof and d:ta processing media therefor, owned, leased, rented or under the control of the I sured, as a direct result of all risks of physical loss or damage, but in no event to e ceed the amount indicated in the declarations. he extension is extended to include actual loss sustained, as covered hereunder, ' d ring the period of time, hereinafter defined, ( ) when as a direct result of a covered peril, the premises in which the pro erty is located is so damaged as to prevent access to such property or (') when as a direct result of a covered peril, the air conditioning system or electrical system necessary for the operation of the data processing equipment is so damaged as to reduce or suspend the Insured's abililty to actually perform the operations normally performed., by the data processing system. his extension is further extended to include necessary extra expense incurred by t e Insured as covered hereunder, during the length of time, not exceeding fo r (4) consecutive weeks, when as a direct result of damage to or destruction of p'ro erty adjacent to the premises herein described by the covered perils, access to such described premises is specifically prohibited by order of Civil authority. p i ' EASURE OF RECOVERY I' the above described property is destroyed or so damaged by the covered erils occurring during the term of this extension so as to necessitate the incurrence of r.xtra expense (as defined in this extension), this Insurer shall be liable for tile extra :xpense so incurred, not exceeding the actual loss sustlained, for not exce ding such length in time, hereinafter referred to as the ',Period of Restora ion", commencing with the date of damage or destruction and not limited by the,d to of -xpiration of this Policy, as shall be required with the exercise of due diligeric and o ispatch to repair, rebuild or replace such part of said property as' m y be destroyed or damaged. his Insurer's liability during the determined period of restoration, shall be,limi ed to t, e declared amount per period of time indicated in the declarations (if a time period is declared), but in no event to exceed the amount of coverage provide . W.C.I.A.--EPIP 2000 Declaration Page 49 T\DEPT US R\WDGS\WDGS12000\WCIA ' I XTENSIONS OF COVERAGE: oss as a result of computer virus subject to a $5,000,000 any one occurreic and i the annual aggregate sub limit of liability. 3) ; XCLUSIONS: his extension does not insure extra expense incurred as!a result of the follo ing ti oerils: � ) The suspension, lapse, or cancellation of any lease, license, contract or order except as a result of physical damage caused by an insured peril. :) Interference at premises by strikers or other persons with repair' g or replacing the property damaged or destroyed or with the resumpti' n or continuation of the Insured's occupancy. ) Loss or destruction of accounts, bills, evidences of debt, valuable (papers, records, abstracts, deeds, manuscripts or other documents except as they may be converted to data processing media form and then only in that form. ) Loss of or damage to property rented or leased to others while away from the premises of the Insured. ) Error in machine programming or instructions to machine. ) Inherent vice, wear, tear, gradual deterioration or depreciation. ) Any dishonest, fraudulent or criminal act by the Insured, a partner ther in or an officer, director or trustee thereof, whether acting alone or in collusio with others. ) Damage due to mechanical failure, faulty construction, error in design unless fire or explosion ensues, and then only for loss, damage or expense' c�:used by such ensuing fire or explosion. ) Delay or loss of market. ) War or nuclear risks as excluded in the Policy to which this extension is attached. w.c.I.A.PEPIP 2000 Declaration Page 50 T\DEPT U,ER\W DGS\W DGS\2000\W CIA I, I 4); OSS PAYMENT BASIS/DETERMINATIONNALUATION: DEDUCTIBLE Each and every loss occurring hereunder shall be adjusted separate) and from the amount of each such loss when so adjusted the amount indicat-d in the declarations shall be deducted. 5)'! -PECIAL CONDITIONS: Dill, RESUMPTION OF OPERATIONS As soon as practicable after any loss, the Insured shall resume compI-te or partial business operations of the property herein described and, in sq f.r as practicable, reduce or dispense with such additional charges and ex -nses as are being incurred. I'I 6) jl 1 EFINITIONS: I i • ) EXTRA EXPENSE The term "Extra Expense" wherever employed in this extension is defin:d as the excess (if any) of the total cost during the period of restoration o the operation of the business over and above the total cost of such operatio that would normally have been incurred during the same period had no loss occurred; the cost in each case to include the expense of using other plro•erty or facilities of other concerns or other emergency expenses. In no :vent however, shall this Insurer be liable for loss of profits or earnings res Iting from diminution of business, nor for any direct or indirect property da age loss insurable under property damage policies, or for expenditures incurr-d in 'll the purchase, construction, repair or replacement of any physical property unless incurred for the purpose of reducing any Toss'under this extensio not exceeding, however, the amount in which the loss is so reduced. Any salvage value,of the property so acquired that may be sold or utilized b the Insured upon resumption of normal operations, shall be taken into consideration in the adjustment of any loss hereunder. - W.CI.A.-P PIP 2000 Declaration Page 51 T\DEPT US=R\WDGS\WDGS\2000\WCIA y i :) NORMAL The term "normal" wherever used in this extension shall mean: The cons ition that would have existed had no loss occurred. �) COMPUTER VIRUS: A computer program whose sole design and intent is to disrupt, destroy or otherwise cause physical damage to other valid and useful com outer software. I i W.C.I.A.-•EPIP 2000 Declaration Page 52 TIDEPT U'ER\W DGS\W DGS\2000\W CIA I i � I SECTION VIII MOBILE ! CONTRACTORS EQUIPMENT 1) *OVERAGE: his Policy insures only mobile machines, including equipment thereof while a ached thereto or located thereon, such as bulldozers, drag lines, power shcvels, d-rricks, drills, concrete mixers and other machinery of a mobile nature. II his extension insures against all risks of direct loss or damage to the wove •escribed property from any external cause except as provided below. � ) Loss or damage due to wear, tear, rust, corrosion, latent defect, mech.nical breakage, or improper assemblage. ) Loss or damage due to the weight of the load imposed on the mai hine exceeding the capacity for which such machine was designed. I ) Loss or damage to crane or derrick boom(s) and jib'(s) of lattice constr ction while being operated unless directly caused by fire, lightning, hail, winds orm, earthquake shock, explosion, riot, riot attending a strike, civil commotion, actual physical contact with an aircraft or airborne missile including objects falling therefrom, collision with other vehicles or other contractors equipment whether or not such other equipment is covered ;hereunder, landslide, or upset of the unit of which it is a part (but only when and to the same xtent that such other perils are covered by the Policy). n) Loss or damage due to explosion arising from within !steam boilers. : ) Loss or damage to dynamos, exciters, lamps, switches, motors or other electrical appliances or devices, including wiring, caused by lightning or other electrical currents (artificial or natural) unless fire ensues and then forth loss by fire only. ' ) Loss or damage due to dishonesty of Insured's employees or persons to whom the Insured's property is entrusted. ) Loss or damage caused by or contributed to failure of the Insured to kee. and maintain the property in a thorough state of repair. � I W.C.I.A.-'•EPIP 2000 Declaration Page 53 T\DEPT U•ER\W DGS\WDGS120001WCIA III it I I ) Loss or damage caused by or resulting from: (1) hostile or warlike action in time of peace or, including action in hind:ring, combating or defending against an actual, impending or expected a ack, (a) by any government or sovereign power (die jure or de facto) ' r by any authority maintaining using military, naval or air forces; or (b) any military, naval or air forces; or ;II (c) by an agent of any such government, power, authority or force ; (2) any weapon of war employing atomic fission or radioactive force wh ther in time of peace or war; (3) insurrection, rebellion, revolution, civil war, usurped power, or action taken by, governmental authority in hindering, combating or defending against such an occurrence, seizure or destruction under quaranti e or customs regulations, confiscation by order of any government or ublic authority, or risks of contraband or illegal transportation or trade; I) Loss by nuclear reaction or nuclear radiation or radioactive contaminate n, all whether controlled or uncontrolled, and whether isuch loss be dire t or indirect, proximate or remote, or be in whole or in part caused by, contributed to, or aggravated by the peril(s) covered against in this endorsement; however, subject to the foregoing and all provisions!of this Policy, direc loss by fire resulting from nuclear reaction or nuclear radiation or radio.:ctive contamination is covered against by this Policy. • 2) : XTENSIONS OF COVERAGE: one 3) XCLUSIONS: ) Automobiles, motorcycles, motor trucks, or parts thereof. Buildings used as camps or otherwise. • p I ) Machinery or, equipment or building materials to be installed in any 'b ilding for the purpose of becoming a part thereof; nor on any property whic has become a permanent part of any structure. 9) Property that is located underground. w.c.I.A.--EPIP 2000 Declaration Page 54 T\DEPT U%ER\WOGS\WDGS\2000\WCIA I � I : ) Property while waterborne except while being transported on any regular ferry. ) Storage risks at premises controlled or leased by the Insured, except here incidental to the regular or frequent use of the equipment or property. ) Plans, blue prints, designs or specifications. u i 4) OSS PAYMENT BASISNALUATION: ee Section II, Item 4.G, page 21 5):1 PECIAL CONDITIONS: his extension covers only within the limits of the United States of America. I is a condition of this Policy that all articles covered hereunder are in -ound ondition at the time of attachment of this Policy. 6), DEFINITIONS: ontractors Equipment shall include but is not limited to: and vehicles including equipment and apparatus attached thereto, whether or not •elf-propelled and not subject to motor vehicle registration. W.C.I.A.--EPIP 2000 Declaration Page 55 i TVDEPT U.ERVW DGS\W DGS12000VWCIA SECTION IX ACCOUNTS RECEIVABLE 1) *OVERAGE: This Policy covers the loss of or damage resulting from "all risks of direct physical l.ss or damage" to the Insured's records of accounts receivable as defined below, o curring during the Policy period. 2) E► TENSIONS OF COVERAGE: N.ne 3) E► CLUSIONS: T is Extension does not apply: A) To loss due to any fraudulent, dishonest or criminal act by the Insured, a partner therein, or an officer, director or trustee thereof, while worKinl or otherwise and whether acting alone or in collusion with others. B) To loss due to bookkeeping, accounting or billing errors or omissions. C) To loss, the proof of which as to factual existence, is dependent upon.an udit of records or an inventory computation; but this shall not preclude the u e of Ili such procedures in support if claim for loss which] the Insured can p ove through evidence wholly apart therefrom, is due solely to a risk of I;o s to records of accounts receivable not otherwise excluded hereunder. DI To loss due to:alteration, falsification, manipulation, concealment, destru tion or disposal of records of accounts receivable committed to conceal the wrongful giving, taking, obtaining or withholding of money, securities or other property, but only to the extent of such wrongful giving, taking, obtaining or withholding. i W.CJ.A.-PE•IP 2000 Declaration Page 56 T\DEPT USE'\WDGS\WDGS\20001WCIA 4) OSS PAYMENT BASISNALUATION: DETERMINATION OF RECEIVABLES; DEDUCTIONS I� I When there is proof that a loss covered by this Policy has occurred bu the Insured cannot accurately establish the total amount of accounts recei able outstanding as of the date of such loss, such amount shall be based !o the Insured's monthly statements and shall be computed 'as follows: ' (1) Determine the amount of all outstanding accounts receivable at the end of the same fiscal month in the year immediately proceeding the ye.r in ip which the loss occurs; (2) Calculate the percentage of increase or decrease in the aye age monthly total of accounts receivable for the twelve (12) months immediately preceding the month in which the loss occurs as comp red with such average for the months of the preceding year; (3) The amount determined under (1) above, increased or decreased by the percentage calculated under (2) above, shall belthe agreed total amount IIj of accounts receivable as of the last day of the fiscal month in, Which said loss 'occurs; II (4) The amount determined under (3) above shall be increase or decreased in conformity with the normal fluctuations in the amou t of accounts receivable during the fiscal month involved, due consideration being given to the experience of the business since the last day; o= the last fiscal month for which statement has been rendered. There shall be deducted from the total amount;of accounts receliv ble, however established, the amount of such accounts evidence by records not lost or damaged or otherwise established or collected by the Insured, and an amount to allow for probable 'bad debts which \A ould normally have been uncollectible by the Insured. All unearned interest and service charges shall be deducted. 5) S'ECIAL CONDITIONS: 'III I Nine it _ I I�i I W.C.I.A.-P:PIP 2000 Declaration Page 57 T\DEPT USE"1WDGSIWDGS120001WCIA • 6) DEFINITIONS: ACCOUNTS RECEIVABLE: (1) All sums due the Insured from customers, provided the Insured is unable to effect collection thereof as the direct result of loss or dam'ade to records of accounts receivable. (2) Interest charges on any loan to offset impaired collections pending repayment of such sums made uncollectible by such loss or damaag . (3) Collection expense in excess of normal collection cost and made necessary because of such loss or damage. (4) Other expenses, when reasonably incurred 'by the Insured, , in re- establishing records of accounts receivable following such loss or damage. W.C.I.A.-"EPIP 2000 Declaration Page 58 T\DEPT U ER\WDGS\WDGS\2000\WCIA it ENDORSEMENT NO. 1 JOINT LOSS ADJUSTMENT ENDORSEMENT In the event of,damage to or destruction of property, at a location designated in this Polio and also designated in a boiler and machinery insurance policy and there is a disag eement between the Insurers and the Insured with respect to: (1j) hether such damage or destruction was caused by a peril covered against by t is Policy or by an accident covered against by such boiler and machinery i surance policy(ies) or (2) he extent of participation of this Policy and of such boiler and machinery i surance policy in a loss that is covered against, partially or wholly, by one for all of -aid policy(ies). 1 This I surer shall, upon written request of the Insured, pay to the Insured one-half of the amount of the loss which is in disagreement, but in no event more than this Insurer would have paid if there had been no boiler and machinery insurance policy(ies) in effect, subject to the following conditions: (1) The amount of loss which is in disagreement after making provisions fore any undisputed claims payable under the said policy(ies) and after the amount of the I ss is agreed by the Insured and the Boiler and Machinery Insurer and this Insurer i limited to the minimum amount remaining payable under either the boiler and i achinery insurance policy(ies). ! (2) he boiler and machinery insurer(s) shall simultaneously pay to the Insured, one- h If of the said amount which is in disagreement. 1 (3) The payments by the insurer(s) hereunder and acceptance of the same'by the Insured signify the agreement of the insurer(s) to submit to and proceed with arbitration within ninety (90) days of such payments: T e arbitrators shall be three (3) in number, one of whom shall be appointed by the b iler insurer(s) and one of whom shall be appointed by the Insured hereon and t e third appointed by consent of the other two, and the decision by the arbitrators shall be binding on the insurer(s) and the Insured and that judgment upon such a and may be entered in any court of competent jurisdiction. , (4)I T e Insured agrees to cooperate in connection with such arbitration but not to in ervene therein. (5) T is agreement shall be null and void unless the Policy of the boiler and machinery Insurer is similarly endorsed. ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED. W.C.I A.-PE-IP 2000 Declaration Page 59 TDEP T USE-\W DGS\W DGS\2000\WCIA ENDORSEMENT NO. 2 PROPERTY JOINT LOSS ENDORSEMENT In; th- event of damage to or destruction of property at a location designated im this Polic and also designated in an excess insurance policy(ies) and if there is disagreement between the insurers with respect to: (1) hether such damage or destruction was caused by a single event or by multiple vents or; (2) the extent of participation of this Policy and any excess insurance policy in a loss overed against partially or wholly, by one of said Policy or policy(ies). This I surer shall, upon written request of the Insured, pay to the Insured one-half of the anj ount of the loss which is in disagreement, but in no event more than this Insurer would have paid if there had been no excess insurance or policy(ies) in effect, subject to the following conditions: (1) the amount of loss which is in disagreement after making provisions for any d undisputed claims payable under the said policy(ies) and after the amount of the ' loss is agreed by the Insured and the insurers is limited to the minimum amount r maining payable under either the primary insurance policy or excess insurance p licy(ies); (2)1 t e excess insurers shall simultaneously pay to the Insured one-half of the said 11 a ount which is in disagreement; and, (3)'1 t e payments by the Insurers hereunder and acceptance of the same by the ember signify the agreement of the insurers to submit to and proceed with arbitration within ninety (90) days of such payments. The a bitrators shall be three (3) in number, one of whom shall be appointed by the exces insurer(s) and one of whom shall be appointed by this Insurer and the third appointed by consent of the other two, and the decision by the arbitrators shall be binding on the insurers and the Insured, and that judgment upon such award may be entereo in any court of competent jurisdiction. (4) T e Insured agrees to cooperate in connection with such arbitration but not to d in ervene therein. 1 ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED. I W.C.I.A.-PE-IP 2000 Declaration Page 60 T\DEPT USER WDGS\WDGS\2000\WCIA 1 1 1 1 ENDORSEMENT NO. 3 PAGE 1 OF 2 EEPAGE AND/OR POLLUTION AND/OR CONTAMINATION EXCLUSION DEBRIS REMOVAL AND COST OF CLEAN UP EXTENSION; i AUTHORITIES EXCLUSION SEE-AGE AND/OR POLLUTION AND/OR CONTAMINATION EXCLUSION: Notwi hstanding any provision in the Policy to which the endorsement is attached, this Polic does not insure against loss, damage, costs or expenses in connection with any kind dr description of seepage and/or pollution and/or contamination, direct or indirect, arsin from any cause whatsoever. Neve heless if fire is not excluded from this Policy and a fire arises directly or in'di Iriectly from eepage and/or pollution and/or contamination, any loss or damage covered under thi's Policy arising directly from that fire shall, (subject to the terms, conditions' and Iirriitat ons of the Policy) be covered. However, if the covered property is the subject of direct physical loss or damage for wlilich the Insured has paid or agreed to pay, then this Policy (subject to its',l terms, coedit ons and limitations) insures against direct physical loss or damage to the property cover d hereunder caused by resulting seepage and/or pollution and/or contamination. The I sured shall give notice to the Insurer of intent to claim NO LATER THAN TWEE E (12) MONTHS AFTER THE DATE OF THE ORIGINAL PHYSICAL LOSS OR DAMAGE. DEBRIS REMOVAL AND COST OF CLEAN UP EXTENSION: ' Notwithstanding the provisions of the preceding exclusions in this endorsement or any provision respecting seepage and/or pollution and/or contamination, and/or debris remov I and/or cost of clean up in the Policy to which this endorsement is attached, in the ev nt of direct physical loss or damage to the property covered hereunder, this Policy subject otherwise to its terms, conditions and limitations, including but not limited to any pplicable deductible) also insures, within the sum covered: (a) a penses reasonably incurred in removal of debris of the property hereunder d stroyed or damaged from the premises of the Insured; . a d/or - I W.C.I.A.-PE-IP 2000 Declaration Page 61 1 T\DEPTI USE'\WDGSIWDGS\2000VWCIA J ENDORSEMENT NO. 3 PAGE 2 OF 2 � i EEPAGE AND/OR POLLUTION AND/OR CONTAMINATION EXCLUSION; DEBRIS REMOVAL AND COST OF CLEAN UP EXTENSION; AUTHORITIES EXCLUSION (b) ost of clean up at the premises of the Insured made necessary as a result of such irect physical loss or damage; ' PROVIDED that this Policy does not insure against the costs of decontamination or reno al of water, soil or any other substance on or under such premises. It s a condition precedent to recovery under this extension that the Insurer shall have paid r agreed to pay for direct physical loss or damage to the property covered he!reu der unless such payment is precluded solely by the operation of any deductible and t at the Insured shall give notice to the Insurer of intent to claim for cost of removal of 'de ris or cost of clean up NO LATER THAN TWELVE (12) MONTHS AFTER(THE DATE OF SUCH PHYSICAL LOSS OR DAMAGE. AUTH RITIES EXCLUSION: I This olicy does not cover expenses, fines, penalties or cost incurred or sustained by the In ured or imposed on the Insured at the order of any Government Agency, Court of other uthority, in connection with any kind or description of environmental impairment including seepage or pollution or contamination of any cause. No him! in this endorsement shall override any radioactive contamination exclusion clause in the Policy to which this endorsement is attached. ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED. 1 . W.C.I. .-PE-IP 2000 Declaration Page 62 i 11DEP11 USE'\W DGS\W DGS\2000\W CIA ENDORSEMENT NO. 4 MINIMUM EARNED ASSESSMENTS It lis understood and agreed that this Policy is subject to 25% minimum earned assessments regardless of time in force. I , _ ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED. W.C.I. .-PE•IP 2000 Declaration Page 63 j, . it 1I ENDORSEMENT NO. 5 • PAGE 1OF2 LENDER'S LOSS PAYABLE ENDORSEMENT ;I I The following provisions (or equivalent) apply as required by "mortgages" and "lenders" to whom certific.tes of coverage have been issued. 1. Los or damage, if any, under this policy, shall be paid to the Payee named on the first page of this po icy, its successors and assigns, hereinafter referred to as "the Lender", in whatever form or ca•acity its interests may appear and whether said interest be vested in said Lender in its individual or in its disclosed or undisclosed fiduciary or representative capacity, or otherwise, or vested in a no inee or trustee of said Lender. 2. Th- insurance under this policy, or any rider or endorsement attached thereto, as to the interest only of he Lender, its successors and assigns, shall not be invalidated nor suspended: (a) by any: error, o ission, or change respecting the ownership, description, possession, or location of the subject of th insurance or the interest therein, or the title thereto; (b) by the commencement of foreclosure pr ceedings or the giving of notice of sale of any of the property covered by this policy by virtue of any mortgage or trust deed; (c) by any breach of warranty, act, omission, neglect, or non-compliance witi any of the provisions of this policy, including any and all riders now or hereafter attached thereto, by the named insured, the borrower, mortgagor, trustor, vendee, owner, tenant, warehouseman, custodian, occupant, or by the agents of either or any of them or by the happening of any;event permitted by them or either of them, or their agents, or which they failed to prevent, whether occurring i before or after the attachment of this endorsement, or whether before or after a loss, which under the prdvisions of this policy of insurance or of any rider or endorsement attached thereto would invalidate . or suspend the insurance as to the named insured, excluding herefrom, however, any i acts or om ssions of the Lender while exercising active control and management of the property. 3. ,1 In he event of failure of the insured to pay any premium or additional premium which shall be or I, be ome due under the terms of this policy or on account of any change in occupancy or increase in ha4ard not permitted by this policy, this Insurer agrees to give written notice to the Lender of such non-payment of premium after sixty (60) days from and within one hundred and twenty (120) days aft r due date of such premium and it is a condition of the continuance of the rights of the Lender her under that the Lender when so notified in writing by this Insurer of the failure of the insured to pay su h premium shall pay or cause to be paid the premium due within ten (10) days following receipt of 'the Insurer's demand in writing therefor. If the Lender shall decline to pay said premium or additional premium, the rights of the Lender under this Lender's Loss Payable Endorsement shall not be I terminated before ten (10) days after receipt of said written notice by the Lender. 4. °.Wh never this Insurer shall pay to the Lender any sum for loss or damage under this policy and shall jclai that as to the insured no liability therefor exists, this Insurer, at its option, may pay to the Lender the whole principal sum and interest and other indebtedness due or to become due from the insured, lwh ther secured or unsecured, (with refund of all interest not accrued), and this Insurer, to the extent l'of sdch payment, shall thereupon receive a full assignment and transfer, without recourse, of the debt and all rights and securities held as collateral thereto. • 5. 'Ilf there be any other insurance upon the within described property, this Insurer shall be liable under 'this policy as to the Lender for the proportion of such loss or damage that the sum hereby insured bea s to the entire insurance of similar character on said property under policies held by, payable to and expressly consented to by the Lender. Any Contribution Clause included in any Fallen Building Clause Waiver or any Extended Coverage Endorsement attached to this contract of insurance is her by nullified, and also any Contribution Clause in any other endorsement or rider attached to this con ract of insurance is hereby nullified except Contribution Clauses for the compliance with which Ithe nsured has received reduction in the rate charged or has received extension of the coverage to incl de hazards other than fire and compliance with such Contribution Clause is made a part of the consideration for insuring such other hazards. The Lender upon the payment to it of the full amount of its claim, will subrogate this Insurer (pro rata with all other insurers contributing to said payment) to :all o the Lender's rights of contribution under said other insurance. W.c.LA.-P 'PIP 2000 Declaration Page 64 ADEPT USE \WDGS\WDGS\2000\WCIA I I ENDORSEMENT NO. 5 PAGE 2 OF 2 • 1 6. This Insurer reserves the right to cancel this policy at any time, as provided by its terms, but in such ca e this policy shall continue in force for the benefit of the Lender for ten (10) days after written no ice of such cancellation is received by the Lender and shall then cease. 7.; Th s policy shall remain in full force and effect as to the interest of the Lender for a period of ten (10) da s after its expiration unless an acceptable policy in renewal thereof with loss thereunder payable to he Lender in accordance with the terms of this Lender's Loss Payable Endorsement, shall have be n issued by some insurance company and accepted by the Lender. 8. . Sh uld legal title to and beneficial ownership of any of the property covered under this policy become I ve ted in the Lender or its agents, insurance under this policy shall continue for the term thereof for th benefit of the Lender but, in such event, any privileges granted by this Lender's Loss Payable En orsement which are not also granted the insured under the terms and conditions of this policy ano/or under other riders or endorsements attached thereto shall not apply to the insurance he eunder as respects such property. 9. All notices herein provided to be give by the Insurer to the Lender in connection with this policy and thi• Lender's Loss Payable Endorsement shall be mailed to or delivered to the Lender at its;office or branch described on the first page of the policy. Approv-d: Board of Fire Underwriters of the Pacific, California Bankers'Association Committee on Insurance. I � ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED. li W.C.I.I A.-PE PIP 2000 Declaration Page 65 T10EP11 tisFPo\wnr:swunrs\9nnn\WCIa ii ENDORSEMENT NO. 6 SEVERABILITY NOTICE TIIhe ubscribing Reinsurers' obligations under contracts of Reinsurance to which they subscribe are several, not joint, and are limited solely to the extent of their individual subscriptions. The subscribing Reinsurers are not responsible for the subscription of any 'o-subscribing Reinsurer who for any reason does not satisfy all or part of its oblig-tions. ill i III ' I � i I I I II ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED. PIP 2000 Declaration Page 66 TnOcT I icGRkwnr_cmwnrm9nnrnwrin ENDORSEMENT NO. 7 ACCIDENTAL CONTAMINATION EXTENSION In consideration of the premium charged and notwithstanding the terms, conditions and stipulations contained in the Policy (except as regards the Policy term and Limits of Liability), including all other endorsements attached thereto, (especially Endorsement NIo,I 3 Seepage and/or Pollution and/or Contamination Exclusion; Debris And Cost of Clean Up Extension; Authorities Exclusion to the extent that it is in conflict herewith), to wOich this endorsement is attached this Policy is hereby extended to cover Business Interrljption and Property Damage loss from accidental contamination from any source to'l In ured Property, as covered by this Policy, including expenses necessarily incurred toy cle n up, remove and dispose of contaminated substances so as to restore the InIIsur d Property as covered by this Policy to the same condition as existed prior,to1 loss, all as a result of accidental contamination, discharge or dispersal which is itself caused by fir , lightning, impact from aircraft, explosion, riot, civil commotion, smoke, collapse, vehic es, windstorm, hail, vandalism, malicious mischief or leakage and accidental 11 disch rge from automatic fire protective systems whereupon this extension shall'Iprovide cover ge up to full limit of liability provided by this Policy. For t e purposes of this extension the term "Insured Property" as covered by this Policy, is hel to include Land (and Land Values) on which Covered Property is located,ias part of ithe below stated sublimit, whether or not the same are excluded by this Policy: It belling specifically understood and agreed that this extension shall not afford coverage to land, including land on which Covered Property is located), and land Values for Toss in exces of the $500,000 sublimit liability. It is urther understood and agreed that this extension shall not override anything contained in Asbestos Clean Up and Removal in this Policy. The si blimit of liability stated above forms part of the limit(s) of liability provided by this Policy and does not increase it (them). ALL OTHER TERMS AND CONDITIONS REMAIN THE UNCHANGED W.C.LA.-P PIP 2000 Declaration Page 67 TDE llT USE-\WDGS\WDGS\20001WCIA ENDORSEMENT NO. 8 It is h-reby understood and agreed that the interest of Additional Insureds and/or,Loss Payees is automatically included, as per Schedule on File with Robert F. Driver As;so.iates. Ij Il�li it 'I• II i I' I I � ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED. lil • ,I I W.C.I.A.-PE•'IP 2000 Declaration Page 68 ENDORSEMENT NO. 9 EXCLUDED PERILS EARTHQUAKE EXCLUSION It is h-reby understood and agreed that as respects Insureds where Optional Coverage "A" is not shown as applicable on the Optional Coverage Participation List, the following Exclu ion is added to the Policy: Any earth movement, including, but not limited to earthquake, landslide or earth sinking, eaIlrth ising or shifting (this exclusion shall not apply to loss or damage by ensuing fire or lex•losion or any other perils insured under this Policy). Asi respects those Insureds where Optional Coverage "A" is shown as applicable,t the terms and conditions of this endorsement are not applicable, but only as respects locati•ns specifically declared and for which a premium has been charged. 1 FLOOD EXCLUSION It is h-reby understood and agreed that as respects Insureds where Optional Coverage or "F" is not shown as applicable on the Optional Coverage Participation List, the folk wi g Exclusion is added to the Policy: Flood, meaning a general condition of partial or complete inundation of normally dry land a ea from: a) ov rflow of inland or tidal water; b) 'unusual and rapid accumulation or run off of surface waters from any source. Flo d shall also mean mudslide or mudflow, which is a river or flow of liquid mud ca sed by flooding as defined in a. or b. above. Th definition of flood does not include ensuing loss or damage not otherwise ex luded. As respects those Insureds where Optional Coverage "E" or "F" is shown as applicable, the ter s and conditions of this endorsement are not applicable, but only as respects locatio s specifically declared and for which a premium has been charged. ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED. W.C.l.l'I.-PE-IP 2000 Declaration Page 69 "'ADEPT USE-\W DGS\W DGS12000\WCIA I! ENDORSEMENT NO. 10 PRIORITY OF PAYMENTS In11th: event of loss caused by or resulting from more than one peril or coverage, the limit of liability of the primary/underlying coverage shall apply first to the peril(s) or coverage(s) not insured by this Policy and the remainder, if any, to the peril(s) or cover:ge(s) insured hereunder. Upon exhaustion of the, limit of liability of the prima /underlying coverage, this Policy shall then be liable for loss uncollected, from the p ril(s) or coverage(s) insured hereunder, subject to the limit of liability and the other terms and conditions as specified. r I II i � I 11i ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED. W.C.I.A.-P-PIP 2000 Declaration Page 70 li TIDEPT USE"1W DGS\W DGS120001WCIA I I ENDORSEMENT NO. 11 LEASEHOLD INTEREST ENDORSEMENT In the event of physical loss or damage of the type insured against by this Policy to real prcpe of the type insured this Policy which is leased by the Insured, this P,olcy is exten u ed to cover: (1 If as a result of such loss or damage the property becomes wholly untenantable or unusable and the lease agreement requires continuation of the rent, the;Insurer shall indemnify the Insured for the actual rent payable for the unexpired term of the lease; or II (2, If as a result of such loss or damage the property becomes partially untenantable or unusable and the lease agreement requires continuation of the rent, the:ln'surer shall indemnify the Insured for the proportion of the rent applicable thereto; or (3 If as a result of such loss or damage the lease is cancelled by the lessor pursuant to the lease agreement or by operation of law, the Insurer shall indemnify the Insured for its Lease Interest for the first three months following such floss or damage and for its Net Lease Interest for the remaining unexpired term of the lease; I provid d, however, that the Insurer shall not be liable for any, increase in the amount recoverable hereunder resulting from the suspension, lapse or cancellation of any license, or from the Insured exercising an option to cancel the lease; or from any act or omission of the In ured which constitutes a default under the lease; and provided further that the Insured shall use any suitable property or service owned or controlled by the Insured or obtain..ble from another source to reduce the loss hereunder. , The fol owing definitions shall apply to this coverage: (1) Lease Interest means the excess rent paid for the same or similar replacement property over actual rent payable plus cash bonuses or advance rent paid (including any maintenance or operating charges) for each month during the unexpired term of the Insured's lease. (2) Net Lease Interest means that sum which placed at 8% interest compounded annually would equal the Lease Interest (less any amounts otherwise payable hereunder). ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED. W.C.I.A.-PE 'IP 2000 Declaration Page 71 Tneor;i Ic IIn,nr_eun,nr_c,nnnun,rie , ENDORSEMENT NO. 12 REVENUE INTERRUPTION PROTECTION (EXCLUDING EARTHQUAKE AND FLOOD) 1) T pe of revenue to be covered: XX Sales Tax, XX Property Tax, XX Other - I w enever the word "Revenue" appears in this form, it shall mean only such revenue a specified. 1 2)J; E cept as hereinafter or heretofore excluded, this Policy,covers only against loss r suiting directly from necessary interruption of revenue as specified above collected by or due to the Insured caused by damage to or destruction by a peril not excluded of any of the real or personal property insured by this Policy and referred to any contribution property(ies) and which is not operated by the Insured against all risks of di ect physical loss or damage by a peril not excluded by this Policy during the term of th s Policy, which wholly or partially prevents the generation of revenue for the account o the Insured. 3) In the event of such damage or destruction, the Insurer shall be liable, with limitations a- indicated, if the following conditions (A) and (B) are both met: (a ) The total revenue is reduced to less than 97.5% of the insured's anticipated revenue had no loss occurred. (B) The Insurer shall be liable for the actual loss sustained by the insured from direct damage by perils insured to one or more contributing properties which results in the interruption of revenue for only the length of time as would be required with exercise of due diligence and dispatch to rebuild, replace or repair the contributing property commencing with the date of damage to, the contributing property, but not limited by the expiration date of this Policy. S ch loss recovery after deductible shall be limited to whichever is the least of: 1. The limit insured on the Policy; 2. The actual loss sustained: 3. The difference in amount between 97.5% of the anticipated revenue and the actual total revenue after the loss. 4) II D DUCTIBLE: Each loss or series of losses arising out of one event at each location sh ll be adjusted separately and from the aggregate amount of all such losses 2.'50D/0 of the annual revenue value shall be deducted. ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED. I � j W.C.I A.-P PIP 2000 Declaration Page 72 TDEPT USE,\WDGS\WDGS'2000\WCIA ENDORSEMENT NO. 13 Page 1 of 3 FORM NO. CP 12 18 10 91 COMMERCIAL PROPERTY THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. LOSS PAYABLE PROVISIONS Thisen•orsement modified insurance provided under the following: BUILDING AND PERSONAL PROPERTY COVERAGE FORM BUILDERS' RISK COVERAGE FORM CONDOMINIUM ASSOCIATION COVERAGE FORM CONDOMINIUM COMMERCIAL UNIT-OWNERS COVERAGE FORM STANDARD PROPERTY POLICY • SCHEDULE Provisions Applicable ICI Loss Lender's Contract Payable Loss Payable Of Sale Prem. Bldg. Description Loss Payee No. No. of Property (Name &Address) A. W en this endorsement is attached to the STANDARD PROPERTY POLICY CP 00 99 the term Coverage Part in this endorsement is replaced by the term Policy. The following is added to the LOSS PAYMENT Loss Condition, as indicated in the Declarations or by an "X' in the Schedule: B. LOSS PAYABLE For Covered Property in which both you and a Loss Payee shown in the Schedule or in the Declarations have an insurable interest, we will: 1. Adjust losses with you; and 112. Pay any claim for loss or damage jointly to you and the Loss Payee, as interests may appear. C. LE DER'S LOSS PAYABLE 1. The Loss Payee shown in the Schedule or in the Declarations is a creditor, including a mortgageholder or trustee, whose interest in Covered Property is established by such written instruments as: a. Warehouse receipts; b. A contract for deed; c. Bills of lading; d. Financing statements; or e. Mortgages, deeds of trust, or security agreements. . CP 12 18 10 91 Copyright, ISO Commercial Risk Services, Inc., 1990 W.C.I.A.-'QEPI. 2000 Declaration Page 73 T\DEPT USER\W GS\WDGS\2000\WCIA r II I ENDORSEMENT NO. 13 Page2of3 FORM NO. CP 12 18 10 91 2. For Covered Property in which both you and a Loss Payee have an insurable interest: a. We will pay for covered loss or damage to each Loss Payee in their order of' precedence, as interests may appear. b. The Loss Payee has the right to receive loss payment even if the Loss Payee has started foreclosure or similar action on the Covered Property. c. If we deny you claim because of your acts or because you have failed to comply with the terms of the Coverage part, the Loss Payee will still have the right to receive loss payment if the Loss Payee: (1) Pays any premium due under this Coverage Part atIour request if you ha\)e failed to do so; (2) Submits a signed, sworn proof of loss within 60 days after receiving notice from us of your failure to do so; and (3) Has notified us of any change in ownership, occupancy or substantial change in risk known to the Loss Payee. All of the terms of this Coverage Part will then apply directly to the Loss Payee., d. If we pay the Loss Payee for any loss or damage and deny payment to you because of your acts or because you have failed to comply with the terms of this Coverage Part: (1) The Loss Payee's rights will be transferred to us to the extent of the amount we pay; and (2) The Loss Payee's rights to recover the full amount of the Loss Payee's cHim will not be impaired. At our option, we may pay to the Loss Payee the whole principal on the debt plus any accrued interest. In this event, you will pay your remaining debt to us. 3. If we cancel this policy, we will give written notice to the Loss Payee at least: a. 10 days before the effective date of cancellation if we cancel for your nonpayment of premium; or b. 30 days before the effective date of cancellation if we cancel for any other reason. 4. If we elect not to renew this policy, we will give written notice to the Loss Payee at least 10 days before the expiration date of this policy. CP12181091 Copyright, ISO Commercial Risk Services, Inc., 1990 W.C.I.A.-PEPI"2000 Declaration Page 74 T\DEPT USER\ DGS\W DGS\2000\W CIA p ' ENDORSEMENT NO. 13 Page3of3 FORM NO. CP 12 18 10 91 D. C•NTRACT OF SALE 1. The Loss Payee shown in the Schedule or in the Declarations is a person or organization you have entered a contract with for the sale of Covered Property. I 2. For Covered Property in which both you and the Loss Payee have an insurable interest we will: a. Adjust losses with you; and b. Pay any claim for loss or damage jointly to you and the Loss Payee, as interests may appear. 3. The following is added to the OTHER INSURANCE Condition: I For Covered Property that is the subject of a contract of sale, the word "you" includes the Loss Payee. CP12181091 Copyright, ISO Commercial Risk Services, Inc., 1990 ' I ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED. 1 I � I I W.C.I.A.-PEPI'•2000 Declaration Page 75 T\DEPT USER\ DGS\WDGS\2000\WCIA 4 i li II 1I ENDORSEMENT NO. 14 ELECTRONIC DATE RECOGNITION EXCLUSION —Wording "A" Words that appear in quotation marks in this endorsement have special meaning. Refer to Section C. - DEFINITIONS. A. EXCLUSION Notwithstanding any other terms or conditions, this Policy, including any other endorsements which may be attached to it, does not insure against any loss, damage, cost, claim or expense directly or indirectly arising out of or relating to: 1. The failure of any"system",whether the property of the insured or others, to"recognize" any"data" involving any"date change"; or, 2. Any"modification"of any"system", whether the property of the Insured or others, to permit such "system"to"recognize" any"data" involving any"date change". Destruction, distortion or corruption of any computer data, coding or software, which is caused by the failure of any"system"to`recognize" any"data" involving any"date change" is not physical loss or damage insured against under this policy. This exclusion shall apply regardless of any other cause or event that contributes concurrently or in any sequence to the loss, damage, cost, claim or expense. However, if physical loss or damage arising out of the perils of Fire, Explosion, Implosion; Smoke, Collapse, Water damage, Sprinkler leakage, Riot and Civil Commotion, Contamination, Aircraft and Vehicles, Theft, Vandalism, Freeze, Flooding, Windstorm or Lightning as covered by this Policy results, then subject to all its terms and conditions, this Policy shall be liable only for such resulting loss or damage. Each occurrence of resulting physical loss or damage Ishall be adjusted separately, and each occurrence shall be subject to the provisions regarding' sublimits and deductibles specified elsewhere in this policy. In the event physical loss or damage not otherwise excluded by this Policy results to any "system", this Policy, including any other endorsements which may be attached to it, does not I insure against any loss, damage, cost, claim or expense, whether preventative, remedial or otherwise, arising out of or relating to any"modification" of any"system", whether the property of the Insured or others, to permit such "system"to `recognize" any"data" involving any"date change". I B. This policy does not insure against any preventive or remedial costs to repair or modify any i ems in A.1. and A.2. above to correct any actual or potential deficiencies or change any f atures of logic or operation. I Thhis policy does not insure against any expense incurred by the insured or others in the ' d:fense, safeguarding, protecting or recovering of property whether before or after loss I d e to any actual or potential loss excluded in Section A. above C. C DEFINITIONS . ; 1. "System" means any computer system, hardware, firmware, program, or software or any microchip, integrated circuit, or similar device in computer equipment or non-computer' equipment. 2. "Recognize" means to recognize, interpret, calculate, compare, differentiate, distingL ish, accept, sequence or process. 3. "Data" means any data, instruction or information. 4. "Date Change" means the date change to the year 2000, the date change in any leap II year or any other date change. 5. "Modification" means any modification, change, addition, alteration or correction. Nothing erein contained shall be held to vary, alter,waive or extend any of the terms, conditions, or lim''itati ns of the policy to which this endorsement is attached other than as above stated. I ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED. I'1' 1 W.C.I.A.IPEPI 2000 Declaration Page 76 T\DEPT USER\W GS\WDGS\2000\WCIA II , I Endorsement No. 15 ELECTRONIC DATE RECOGNITION EXCLUSION -"WordingB" I (All Risks Write Back) ELECTRONIC DATE RECOGNITION EXCLUSION Notwith tanding any provision of this Policy which may appear to the contrary, this Policy does n.t insure any loss, damage, cost, claim or expense, whether preventative, remedial or o ,he ise, directly or indirectly arising out of or relating to: a) i the recognition, interpretation, calculation, comparison, differentiation, sequencing olr processing of data involving one or more dates or times, including the Year I 2000, by any computer system, hardware, program or software, or any microchip, integrated circuit or similar device in computer equipment or non-computer e uipment, whether the property of the Insured or not; or b) a y change, alteration, correction or modification involving one or more dates or ti es, including the Year 2000, to any such computer system, hardware, program o software, or any microchip, integrated circuit or similar device in computer e uipment or non-computer equipment, whether the property of the Insured or not. Except s provided in the next paragraph, this Electronic Date Recognition Clause 'shall apply r gardless of any other cause or event that contributes concurrently or lin any sequ'en a to the loss, damage, cost, claim or expense. If direct physical loss or damage not otherwise excluded by this Policy results, then subject t all its terms and conditions, this Policy shall be liable only for such resulting loss or d9ma e. Such resulting loss or damage shall not include physical loss or damage to data',re ulting directly from a) or b) above, nor the cost, claim or expense, whether prevent tive, remedial, or otherwise, arising out of or relating to any change, alteration, correIIcti.n or modification relating to the ability of any damaged computer system, il hardwar-, program or software, or any microchip, integrated circuit or similar device in II comput-r equipment or non-computer equipment to recognize, interpret', calculate, comparz, differentiate sequence or process any data involving one or more dates or times, in luding the Year 2000. 1 ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED. W.C.I.A.-I ER'2000 Declaration Page 77 T\DEPT USER\W CGS\WDGS\2000\WCIA it Endorsement No. 16 ELECTRONIC DATE RECOGNITION EXCLUSION It is the eby understood and agreed that all members and named insureds have coverage as lildie-cribed and defined in .Endorsement No. 14 — Electronic Date Recognition Exclusion-Wordings A It is fu „her understood and agreed that as respects members and named insureds listed below, Electronic Date Recognition Exclusion — Wordings A is hereby deleted and replace. with Endorsement no. 15- Electronic Date Recognition Exclusion — Wordings B (All Ris s Write Back). This ch:nge applies to the following members: II members of Washington Cities Insurance Authority (WCIA) ' I ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED. W.C.I.Ail�PEP P 2000 Declaration Page 78 T\DEPT USER\ DGS\WDGS\2000\WCIA 11 ENDORSEMENT NO. 17 NAMED INSURED-MEMBER SCHEDULE Them.mbers of the WASHINGTON CITIES INSURANCE AUTHORITY (WCIA)rare: p � They m=mbers of the Washington Cities Insurance Authority are: A Regional Coalition for Housing Town of La Conner City of Aberdeen City of Lacey City of Arlington City of Lake Forest Park City of Auburn City of Lake Stevens City of Bainbridge Island City of Leavenworth City of Battle Ground City of Long Beach Benton County Emergency Services City of Longview City of Bothell City of Mabton City of Burien City of Maple Valley City of Camas City of Marysville City of Centralia Marysville Fire District . City of Chehalis City of McCleary City of Chelan City of Medical Lake City of Clarkston City of Medina City of Clyde Hill City of Mercer Island Town of Coupeville City of Mill Creek City of Covington City of Milton Cowlitz Sewer Operating Board City of Monroe City of Des Moines Monroe Fire District Eastside Public Safety Commission City of Montesano City of Edgewood City of Mount Vernon City of Edmonds City of Mountlake Terrace City of Elma City of Mukilteo Emergency Services Coord. Agency City of Newcastle City of Enumclaw City of Normandy Park City of Grandview City of North Bonneville City of Goldendale City of Ocean Shores Grays Harbor Communications City of Pacific City of Hoquiam City of Olympia City of Issaquah Penninsula Communications City of Kelso City of Port Angeles City of Kenmore City of Port Townsend City of Kirkland W.C.LA.-PE-IP 2000 Declaration Page 79 T\DEPT USER1 DGS\WDGS\2000\WCIA I I i I i I City of Puyallup City of Tukwila City of Renton City of Tumwater City of Richland City of Union Gap City of Sammamish City of University Place City of Shelton Valley om City of Shoreline City of Walla Walla Skagit Washington Cities Insurance Authority (WCIA) Skagit Emergency Communication Center City of Washougal I (SECOM) SNOCOM, Water Operating Board (WOB) City of Snohomish City of Westport SNOPAC City of Woodinville City of Snoqualmie Town of Woodway City of Stanwood Yakima Valley Conference of Govts. Town of Steilacoom City of Zillah City of Sumner City of Toppenish WASHINGTON CITIES INSURANCE AUTHORITY (WCIA) shall be deemed the sole ageht o each and every Association/Pool member for the purpose of: (1) giving notice of cancellation, (2) giving instructions for changes in the Policy and accepting changes in this Policy, and (3) the payment of assessments/premiums or receipt of return assessments/premiums. ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED W.C.I4.-PE•'IP 2000 Declaration Page 80 T\DEPTjUSER WDGS\WDGS\2000\WCIA ENDORSEMENT NO. 18 AUTOMATIC ACQUISITION CLAUSE The provisions of this automatic acquisition clause do not increase 1) the occurrence Iimit(s) of liability, 2) th0 sub-limit(s) of liability or 3) the aggregate limit(s) provisions of this coverage. 1. Existing Named Insured Members I Any named insured member at coverage inception may increase or decrease ;total insured values for all coverage's and all perils (EXCLUDING CALIFORNIA EARTHQUAKE) purchased at inception subject to a maximum change in values not exceeding $ Per Declaration Pa e at any one time. The reporting of the changes to underwriters and the applicable additional or return premium will be provided to/from the underwriters: I ❑ At expiration with additional/return premium applicable on an ensuing year basi I' Changes in total insured values exceeding the stated limitation will be reported Immediately to uiderwriters for acceptance and additional/return premium agreement. 2. j Special Provisions Applicable to California Earthquake Coverage Any named insured may increase or decrease total insured values as respects California earthquake coverage subject to a maximum change in values not exceeding II $ NO COVERAGE at any one time. The reporting of the changes to underwriters and the applicable additional or return premium will be provided to/from the underwriters: ❑ At expiration with additional/return premium applicable on an ensuing year basi Changes in total insured values exceeding the stated limitation will be reported immediately to Iu-iderwriters for acceptance and additional/return premium agreement. 3. I Provisions Applicable to new/deleted Named Insured Members I! ' The "First Named Insured" may add/delete named insured members to the coverage herein provided subject to a maximum change in total insured values not exceeding $ Per Declaration Page for any one named insured member. The reporting of new/deleted named insured members to underwriters and the applicable additional or return premium will be provided to/from the underwriters: I ' o At expiration with additional/return premium applicable on an ensuing year basis New/deleted named insured members with total insured values exceeding the state 1 limitation will be reported immediately to underwriters for acceptance and additional/return premium agreement. W.C.I.AII PEPIP 2000 Declaration Page 81 TDEPT IJSERIWDGS\WDGS\20001WCIA , 1 I 4. 1 "rovisions A..licable to O.tional Covera.e's Any named insured member at coverage inception (or added as per provisions in item 3) may ffect optional coverage's of 1) Licensed Vehicles, 2) Contractor's equipment,/ Unlicensed ehicles or 3) Scheduled Fine Arts subject to a maximum in total insured values no l exceeding 100,000 per optional coverage at any one time. 1 1 he reporting of the changes to underwriters and the applicable additional or return premium ill be provided to/from the underwriters: At expiration with additional/return premium applicable on an ensuing year basis I hanges in total insured values exceeding the stated limitation will be reported Immediately to nderwriters for acceptance and additional/return premium agreement. i I 1 1 1 i I I I , I ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED I W.C.I.A.-PE'I•IP 2000 Declaration Page 82 ADEPT USER,IWDGSIWDGS120001WCIA Proportional Reinsurance Certificate , I The Reinsured is requested to read this Reinsurance ( and, if it is incorrect, return it immediately to your Broker for alteration. In all communications the Certificate Number appearing in line one of the Schedule should be quoted 'I� I LTIL/J• KATO of n,.... r-'.r IT/T r rnn'1n11'7 CERTIFICATE OF PROPERTY FACULTATIVE REINSURANCE ACE USA Westchester Fire Insurance Company 21860 Burbank Blvd., Suite 250, Woodland Hills, CA 91367 These Declarations are subject to the Reinsurance Agreement and Conditions on the Certificate jacket,which are made part of this Agreement WASHINTCN CITIES INSURANCE AUTHORITY CERTIFICATE NUMBER: RAL-64620 P.O. BOX 1165 RENTON,WA 98057 RENEWAL OF: RAL-646188 DATE ACCEPTED: 9/1/2000 COMPANY POLICY NUMBER: WCIA-2001 CEDING COMPANY: COMPANY POLICY PERIOD: 9/1/2000-01, WASHINGTON CITIES CERTIFICATE PERIOD: 9/1/200u-01 INSURANCE AUTHORITY . INSURED: WASHINGTON CITIES INSURANCE AUTHORITY, AS MORE FULLY DEFINED IN ITEM #1 OF POLICY WCIA-2001 LOCATIONS COVERED: AS PER SCHEDULE ON FILE WITH UNDERWRITERS 1,1 TYPE OF INSURANCE: REAL AND PERSONAL PROPERTY, BUSINESS INCOME/EXT'R EXPENSE/RENTS, TAX INTERRUPTION, COURSE OF CONSTRUCTION, FINE ARTS, VALUABLE PAPERS, MOBILE EQUIPMENT, BUILDING ORDINANCE, LEASEHOLD INTEREST A D AS PER POLICY WCIA-2001 PERILS REINSURED: ALL RISK OF PHYSCAL LOSS INCLUDING EARTHQUAKE AND F OOD REINSURANCE ACCEPTED: $6,250,000 PART OF$50,000,000 PRIMARY PER OCCURRENCE 111 SUBJECT TO $6,250,000 PART OF$50,000,000 EARTHQUAKE A, D $6,250,000 PART OF $50,000,000 FLOOD COMPANY RETENTION: $450,000,000 PART OF$500,000,000 SUBJECT TO $50,000,000 ART ' OF$100,000,000 EARTHQUAKE AND $200,000,000 PART OF 1 $250,000,000 FLOOD COMPANY POLICY LIMITS: $500,000,000 SUBJECT TO $100,000,000 SUBLIMIT EARTHQUAKE AND $250,000,000 FLOOD OriginaI certificate Premium: $47,892 Commission: 15% - Page 1 of 2 u COUNTERSIGNATURE: /� �`t'f � '' AUJTIiORIZED REPRESENT I TIVE I i r. 1. APPLICATION reinsurance afforded by this Certificate is on an Excess of Loss basis. salvage shall be applied in the inverse order in which liability atta hes. The Company warrai is to retain for its own account. the amount specified in this Certificate w ich amount may be subject to. Treaty Reinsurance. 6. TAXES unless otherwise d lased to the Reinsurer.. As respects Pro-Rata Reinsurance. in the vent of the Company's retention being less than such The company shall be liable for all taxes on premiums ceded to the amount. the Reinsunr's liability shall be proportionately reduced. Reinsurer under this Certificate. Except as spccificall ' provided by the insolvency Clause. the Reinsurer's 7• INSOLVENCY obligations under th s Certificate.shall run only to the Company and the In the event of the insolvency of the Company. the reinsurance provided by Reinsurer shall have no obligation to the original insured or any other third this Certificate will be payable directly and exclusively to the Company or its party. liquidator(except as provided by Section I1 13(a)of the New York Insurance The liability of the Reinsurer shall follow that of the Company, subject in all Law) on the basis of the amount of the claim allowec in the insolvency respects to all of the terns. limits and conditions of the policy(ies) reinsured. proceeding without diminution by reason of the inability of the Company to except as otherwise specifically provided herein or designated as pay all or part of the claim. The Reinsurer shall he giv n written notice of nonconnurentlreius caner. the pendency of each claim against the Companyi on the olicy(ies) reinsured hereunder within a reasonable tune after such clai}n is filed in the 1. COMPANY DC TIE insolvency proceedings. The Reinsurer shall have the right to investigate each such claim and interpose, at its own expense. in the proceeding which The Company shall, unless otherwise advised, furnish the Reinsurer with a such claim is to be adjudicated, any defenses which it mdeem available to copy of its policy(i 1 and all endorsements thereto which in any manner the Company or its liquidator. The expense thus loco by the Reinsurer affect this Reinsures cc. and shall make available for inspection and place at shall be chargeable. subject to court approval. ag 'list the Insolvent the disposal of the R insurer at reasonable times all records of the Company. Company as part of the expense of liquidation to the extent of a howsoever maintai ed, relating to the Reinsurance or claims in connection share of the benefit which may accrue to the Company solely therewith as the result of the defense undertaken by the Reinsurer. The Company,shal notify the Reinsurer promptly of any change in the 8 CANCELLATION policy(ies)reinsured hereunder which affects this Certificate. (A) This reinsurance may be cancelled at any time on a Pro-Rata basis by 3. STANDARD WAR ND NUCLEAR EXCLUSIONS either the Company or the Reinsurer giving written notice to the other party by mailing such notice to the address appearing in ills Certificate. The The Reinsurance ereunder is subject to the standard Nuclear Incident effective date of the cancellation shall be determined by.he numnher�of days Exclusion Clause(s) and standard War Exclusion Clause(s) for the coverage allowed in the original policy plus 30 additional days no to exceed 10 days provided. in all. Cancellation of the policy(ies) reinsured hereund r shall constitute tun automatic cancellation of this Reinsurance as of the s me date and on the 4. NOTICE OF LOSS same premium basis as that of the policy(ies)reinsured. The Company shall be entited to return premiums payable on the cancelled reinsurance less the • Prompt written no ice shall be given to the Reinsurer by the Company of amount of the ceding commission thereon if any. any occurrence or accident and all material developments relating thereto 1131 In the event of non-payment of premium. this Certificate may he which.without regard to liability. appears likely to involve this Reinsurance less• cancelled by the Reinsurer by giving notthan 1 days prior written and. while the Reinsurer does not undertake to investigate or defend claims notice stating when the reinsurance hermit dershall terminate. or suits. the Reinsu or. directly or through its representatives and or counsel, Proof of mailing shall be deemed proof of notice. shall nevertheless rave the right and be given the opportunity, with the Companys [tell c operation. to associate with the Company and its representatives, at he Reinsurer's expense. in the defense of any claim, suit 9. OFFSET or proceeding'invol'Ong this Reinsurance. The Reinsurer and the Company may offset any and all balance(s). whether 5. CLAIM SETTLE. P NT on account of premiums. losses or otherwise.due or to become due from one• part to the other under this Certificate or any other agreement. treaty or All claims coverer by this Reinsurance. when settled by the Company. facultative. heretofore or hereafter entered into between the Company and. provided paymen is within the terms, limits and conditions of the the Reinsurer, whether acting as assuming reinsurer oti ceding company. In Certificate the event of insolvency of either the Company or the einsurer, offset shall Company's policy(es) as described in the Declarations and of this be of Reinsurance,shall be binding on the Reinsurer who shall be bound to pay permitted in accordance with the terms of this cla use and as otherwise' its proportion of s ich settlements. Prejudgement Interest shall be deemed permitted by law. If the Company is comprised of mare than one entity. all pan of loss. In ad'idol) thereto. the Reinsurer shall be bound to pay (A) its such entities will be considered the Company for'purpoSes of offset. proportion of alto ated expenses. other than Company salaries and office expenses. incurre. by the Company in the investigation and settlement of 10. AMENDMENTS claims or suits un er the terms or policies reinsured. and (B) its proportion of The terms of this Certificate shall not be waived or changed except by court costs. litiga ion expenses and interest on any judgment or award as endorsement issued to form a part hereof, executed by a duly authorized follows: (11 ),Fitt respect to reinsurance provide on an Excess of Loss basis, representative of the Reinsurer. in the ratio that tic Reinsurer's loss payment bears to the Company's gross loss payment: an (21 t\'ith respect to reinsurance provided on a Pro-Rata basis. in the ra o that the Reinsurer's limit of liability bears to, the Company's gross 1 mit of liability. Payment of the R insurers proportion of loss and expense incurred by the Company and co•ered by this Certificate will be made to the Company promptly upon re:eipt and approval by the Reinsurer of satisfactory proof of loss and expense. • The Reinsurer wi he paid or credited by the Company with its proportion of salvages. which is reimbursement obtained or recovery made by the Company. less ti e actual cost (excluding Company salaries and office . expenses)of;obtai ing such reimbursement or making such recovery. If the DECLARATIONS PAGE 1) 'RE NSURED: WASHINGTON CITIES INSURANCE AUTHORITY (WCIA) As Imo e fully described in "NAME OF INSURED" (Section I, Item 1) and Named Insured Endorsement No. 17 2) MA LING ADDRESS: P. O. BOX 1165 RENTON, WA 98057 • 3) PO ICY PERIOD: SEPTEMBER 1, 2000 12:01AM TO SEPTEMBER 1, 2001 12:01A 4) LIMIT AND SUB-LIMITS OF LIABILITY: 1. $ 5 0,000,000 Per Occurrence: All Perils, Coverages and Insureds/Members combined, subject to sub-limits S b-limits: A. $ 50 000 000 Per Occurrence and in the Annual Aggregate as respects-Flood -all coverages B. $ 00 000 000 Per Occurrence and in the Annual Aggregate as respects Earthquake Shock- -all coverages C. $ 00,000,000 Combined Business Interruption, Extra Expense, Rental Income and Tax Interruption D I$ 25.000,000 Miscellaneous Unnamed Locations and automatic acquisition as respects existing and new members as per endorsement No. 18 (including earthquake) No new members for only automobile coverage E. $ 25,000,000 Landscaping,tees, sand traps,greens and athletic fields F. $ 25,000,000 Errors&Omissions G. $ 25,000,000 Course Of Construction (including new for project values up to$25,000,000) H. $ 1,000,000 Money&Securities I. $ 10,000,000 Unscheduled Fine Arts J. $ 500,000 Accidental Contamination • K. $ 1,000,000 Tunnels, bridges, dams,catwalks (except those not for public use) , roadways, highways,streets, sidewalks,culverts,street lights and traffic signals unless a specific value has been declared L. $ 00 000,000 Demolition and Increased Cost of Construction due to the enforcement of building codes $ 25,000,000 Transit $ 1,000,000 Animals;except$100,000 Specially Trained Animals $ 1,000,000 Watercraft under 27 feet or less unless scheduled $ 50,000 Newly Acquired Vehicles (current members with auto coverage only) $ ot covered Replacement power extra expense at scheduled utility locations $ 5,000,000 Off premises services interruption including extra expense resulting from a covered p ril at non- owned/operated locations $ ot Covered Contingent business interruption resulting from a covered peril at non owned/operate power generating facilities $ 'ot applicable Per occurrence and in the annual aggregate: Earthquake shock on licensed vehicles, unlicensed vehicles,contractors equipment and fine arts combined for all insureds/members combined that do not purchase optional coverage Item-A): Earthquake Shock As m•re fully described in "LIMITS OF LIABILITY" (Section I — Item 4) V�LC.I A.-PEPIP 2000 Declaration r 5) DE n UCTIBLE(S): A. ;'BA.IC"ALL PERILS AND COVERAGES (EXCEPT SPECIFIED PERIL OR COVERAGE 'DEmUCTIBLE SHOWN BELOW): Ded ctible: $50,000 Per Occurrence B. SPE IFIED PERILS AND COVERAGE DEDUCTIBLES 100,000 Per Occurrence— Flood '% Per Unit of Insurance (Real & Personal Property and Time Element) subject to $100,000 inimurn Per Occurrence- Earthquake Shock, except p a. Vehicles or Contractors Equipment- $25,000 Per Vehicle/Item subje t to $100,000 maximum as respects the perils of Earthquake or Flood b. Fine Arts -$50,000 Per Occurrence— Earthquake or Flood • $ 54,000 Per Occurrence-vehicle property damage $ 54,000 Per Occurrence-vehicle collision dariiage $ ,000 Per Occurrence-Specially Trained Animals $504,000 Per Occurrence -Tunnels, bridges, dams, catwalks ( except those not for public use) , roadways, highways, streets, sidewalks, culverts, street lights and traffic signals unless a specific value has been declared 24 h•urwaiting period—All Perils: Service Interruption $ 10 000 -Course of Construction—All Perils except Earthquake & Flood As 'mor- fully described in " DEDUCTIBLE PROVISIONS" ( Section I—Item 5) 6) OP IONAL COVERAGE PARTICIPATION It is nderstood and agreed that the certain Member Agencies participate in Optional Coverage o this Policy as set forth below: EMBER AGENCY "BASIC" COVERAGE APPLICABLE DEDUCTIBLE OPTIONAL COVERAGES* A I member per Named $ 50,000 A, B, C, E I sured Endorsement No. 17 *O•TIONAL COVERAGES IDENTIFICATION: A) Earthquake Shock B) Licensed Vehicles C) Contractors Equipment/Unlicensed Vehicles D) Scheduled Fine Arts E) Flood W.C.I.•.-PEPIP 2000 Declaration Endorsement No. 16 ELECTRONIC DATE RECOGNITION EXCLUSION It is hereby understood and agreed that all members and named insureds have coverage as described and defined in Endorsement No. 14 —.Electronic Date Rec.gnition Exclusion- Wordings A It is urther understood and agreed that as respects members and named insureds listed below, Electronic Date Recognition Exclusion — Wordings A is her:by deleted and replaced with Endorsement no. 15- Electronic Date Rec.gnition Exclusion —Wordings B (All Risks Write Back). Thi- change applies to the following members: All members of Washington Cities Insurance Authority (WCIA) ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED. W. I . I.A. - PEPIP 2000 Endorsement No. 16 • I • ENDORSEMENT NO. 17 NAMED INSURED-MEMBER SCHEDULE The members of the WASHINGTON CITIES INSURANCE AUTHORITY (WCIA) are: The members of the Washington Cities Insurance Authority are: A Regional Coalition for Housing Town of La Conner City of Aberdeen City of Lacey City of Arlington City of Lake Forest Park City of Auburn City of Lake Stevens City of Bainbridge Island City of Leavenworth City of Battle Ground City of Long Beach Benton County Emergency Services City of Longview City of Bothell City of Mabton • City of Burien City of Maple Valley City of Camas City of Marysville City of Centralia Marysville Fire District City of Chehalis City of McCleary City of Chelan City of Medical Lake City of Clarkston City of Medina City of Clyde Hill City of Mercer Island Town of Coupeville City of Mill Creek City of Covington City of Milton Cowlitz Sewer Operating Board City of Monroe City of Des Moines Monroe Fire District Eastside Public Safety Commission City of Montesano City of Edgewood City of Mount Vernon City of Edmonds City of Mountlake Terrace City of Elma City of Mukilteo Emergency Services Coord. Agency City of Newcastle City of Enumclaw City of Normandy Park City of Grandview City of North Bonneville City of Goldendale City of Ocean Shores Grays Harbor Communications City of Pacific City of Hoquiam City of Olympia City of Issaquah Penninsula Communications City of Kelso City of Port Angeles City of Kenmore City of Port Townsend City of Kirkland WCIA —2000 Form 1✓ ,7 4 44 l'7 ENDORSEMENT NO. 17 NAMED INSURED-MEMBER SCHEDULE The;members of the WASHINGTON CITIES INSURANCE AUTHORITY (WCIA) are• City of Puyallup City of Tukwila City of Renton City of Tumwater City of Richland City of Union Gap City of Sammamish City of University Place City of Shelton Valley Corn City of Shoreline City of Walla Walla Skagit Washington Cities Insurance Authority(WCIA) Skagit Emergency Communication Center(SECOM) City of Washougal SNOCOM Water Operating Board (WOB) City of Snohomish City of Westport SNOPAC City of Woodinville City of Snoqualmie Town of Woodway City of Stanwood Yakima Valley Conference of Govts. Town of Steilacoom City of Zillah City of Sumner City of Toppenish WASHINGTON CITIES INSURANCE AUTHORITY (WCIA) shall be deemed the sole agent of each and every Association/Pool member for the purpose of: 0) giving notice of cancellation, (2) giving instructions for changes in the Policy and accepting changes in this Policy, .nd (3) the payment of assessments/premiums or receipt of return assessments/premiums. ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED WCIA —2000 Form • F.nrinrcnmPnt #17 ENDORSEMENT NO. 18 AUTOMATIC ACQUISITION CLAUSE The provisions of this automatic acquisition clause do not increase .1) the occurrence Iimitls) of liability, 2) the sub-limit(s) of liability or 3) the aggregate limit(s) provisions of this overage. 1. Existing Named Insured Members Any named insured member at coverage inception may increase or decrease total insured values for all coverage's and all perils (EXCLUDING CALIFORNIA EARTHQUAKE) purchased at inception subject to a maximum change in values not exceeding $ 25,000,000 at any one time. The reporting of the changes to underwriters and the applicable additional or return premium will be provided to/from the underwriters: 1 o Every 6 months with additional/return premium due/payable The additional/return premium will be determined based on agreed rates. Changes in total insured values exceeding the stated limitation will be reported Immediately to underwriters for acceptance and additional/return premium ' confirmation. 2. Special Provisions Applicable to California Earthquake Coverage Any named insured at coverage inception that purchases California earthquake coverage at inception may increase or decrease total insured values as respects California earthquake coverage subject to a maximum change in values not exceeding $ NO COVERAGE at any one time. • The reporting of the changes to underwriters and the applicable additional or return premium Will be provided to/from the underwriters: • o NO COVERAGE The additional/return premium will be determined based on agreed rates. Changes in total insured values exceeding the stated limitation will be reported immediately to underwriters for acceptance and additional/return premium confirmation. w. .LA. PEPIP 2000 :Endorsement No. 18 3. Provisions Applicable to new/deleted Named Insured Members • The "First Named Insured" may add/delete named insured members to the coverage herein provided subject to a maximum change in total insured values not exceeding $ 25,000,000 for any one named insured member. COVERAGE FOR AUTOMOBLIESNEHICLES ONLY CANNOT BE ADDED REGARDLESS OF VALUES CALIFORNIA EARTHQUAKE IS EXCLUDED FROM THIS PROVISION The reporting of new/deleted named insured members to underwriters and th- applicable additional or return premium will be provided to/from the underwriters: o Every 6 months with additional/return premium due/payable The additional/return premium will be determined based on agreed rates. New/deleted named insured members with total insured values exceeding the stated limitation will be reported immediately to underwriters for acceptance and additional/return premium confirmation. . 4. Provisions Applicable to Optional Coverage's Any named insured member at coverage inception (or added as per provisions in item 3) may effect optional coverage's of 1) Licensed Vehicles, 2) Contractor's) equipment / Unlicensed Vehicles or 3) Scheduled Fine Arts subject to al maximum in total insured values not exceeding $ 100,000 per optional coverag at any one time. The reporting of the changes to underwriters-and the applicable additional or return premium will be provided to/from the underwriters: ❑ Every 6 months with additional/return premium due/payable • The additional/return premium will be determined based on agreed rates. Changes in total insured values exceeding the stated limitation will be reported Immediately to underwriters for acceptance and additional/return premium Confirmation. ALL OTHER TERMS AND-CONDITIONS REMAIN UNCHANGED W.I.I.A.-PEPIP 2000 ,Endorsement No. 18 ^ . ^ " ^ ^ ' ^ ` P. E' P' [ P' - U��^4 / , . Washington Cities Insurance Authority(WzIA) � � Reinsurance Period: 8U/0OtoSM01 � Binder#000350 � SCHEDULE OF REINSURANCE COMPANIES | Policy#/Reins. Company Certificate Participation ^,eonium mRyinsu nq n Companies or<vvCuo'_'—_-- ---_— fV (association policy nu) $114,93972 Ro�ou�nceCe��ca�NO. LU 0029117 s�s�Rewe*�a�e�/u�|m��aUona| 13.00m XlEuimpeInsurance 12.50% uuutum/ 25.50m sV Reinsuhnnoomnanvuuovusavnmcateu Number of:0mowV (association policy mz) o223.118.28 Reinsurance Certificate NO. LU 0029117 MumichArrehcan Risk Partners/Great Lakes 11.25m Wellington Syndicate VVEL2O2o 8.500% M.E.8mckbank Syndicate MDR o§1 /MEB12os/NJM5aO/MEo12ou 10.625% Harvey Bowhng Syndicate VVEH3§2/HRB8c3 6.375% OJ. Catlin Syndicate 1003/2003 4.250m ACE G|ub2{Markets S dicateAGM2488 4.250% F.R.VVhite3yndicate 130 4.250% � Subtotal ^o.ou% qReinsurin"'Ins"ra=Companies&Lloyds Syndicate/Number of:(VVC1Aj (association policy no.) nuo.00u.nonphman/ . Westches-er Fire Insurance Company m«L 646e02 12.50m 891 55 comgis|mvrancoCo. 651-008823 7.50% $28.734.e3 $4somoo.noo excess vr$xo.nno.000 D.P.Mann Syndicate 435(8.3nsv)and Cox Property u Casualty 20orH.1s7%q Included above Excess($4somM^s$oomw) Reinsurance Certificate No. LUooeo:4o s13.522.32 u000.000.000 Loss Limit ' Aghcuxura Insurance Co. oPpzc1 1352 5.00% $22,537.20 ' � Subtotal 25.00% TOTAL 100i00Y6 %4 5o.744.0o ' ` � � • • • PREVIOUS POLICY:CPP 3994645 AGRICULTURAL INSURANCE COMPANY AGRICULTURAL INSURANCE COMPANY PROPERTY INSURANCE POLICY Cincinnati, OH (Multi-Purpose Form) A'STOCK INSURANCE COMPANY ,(herein called"the Company') POLICY NO.: CPP 3211352 . PRODUCER'S NAME AND ADDRESS NAMED INSURED: M.T.S. INSURANCE SERVICES PUBLIC ENTITY PROPERTY INSURANCE PROGRAM 1551 N.TUSTIN AVE.,#700 (AKA: PEPIP USA AND AS PER SPECIFIC ENDORSEMENTS • SANTA ANA,CA 92705 AND INDIVIDUAL DEC RATIONS AS ENDORSED) • Mailing Address: Ili PRODUCER CODE: 111130 AS PIER THE SPECIFIC 4041 MACARTHUR BL D. 1 MAY 1,2000 ENDTS &INDIVIDUAL NEWPORT BEACH,C• 92660-1551 DECLARATIONS TERM(YEARS) INCEPTION(MO DAY YR) EXPIRATION(MO DAY YR) It is important that the'writt-n portions of all policies covering the same property read exactly alike. If they do not,they should be made uniform at once. INSURANCE IS PROVIDE' AGAINST ONLY THOSE PERILS AND FOR ONLY THOSE COVERAGES INDICATED BELOW BY A PREMIUM CHARGE AND AGAINST OTHER PERIL'AND FOR OTHER COVERAGES ONLY WHEN ENDORSED HEREON OR ADDED HERETO. Item Limit(s)ofi Prepaid Term No. Liability Rate(s) Premium Due Annual Payment At Inception 5%OF THE LI ITS AND SUBLIMITS 1. AS PER ITEM OF THE INDIVIDUAL. AS PER THE SPECIFIC DECLARATIONS AS ENDORSED TO ENDTS AND INDIVIDUAL THIS POLICY. DECLARATIONS TOTAL OF ANNUAL PREMIUMS FOR POLICY TERM Item Limit(s)of! Description of coverage(s)provided.Peril(s)insured against and location(s) No. Liability covered(include deductible(s)and limitation(s),if any,applicable) 1. 5%OF THE LIMITS AND SUBLIMITS AS PER AS PER THE SPECIFIC ENDORSEMENTS AND INDIVIDU•L ITEM 4 OF THE INDIVIDUAL DECLARATIONS DECLARATIONS. AS ENDORSED TO THIS POLICY. 11 Subject to Form No.(s): PEPIP-2000(77 PAGES), IL 0017(11/98) INSERT FORM NUMBER(S) AND EDITION DATE(S) attached ereto. Mortgage :lause: Subject to the provisions of the mortgage clause attached hereto,loss,if any,on building items,shall be payable to: NSERT NAME(S)MORTGAGEE(S)AND MAILING ADDRESS(ES) 11 COUNTERSIGNED AT: LOS ANGELES,CALIFORNIA • • ;OUNTERSIGNATURE DATE: OCTOBER 30,2000 COUNTERSIGNED BY: Authoriz-• Rypresentative N CONSIDERATION OF THE PROVISIONS AND STIPULATIONS HEREIN OR ADDED HERETO AND OF the premium above specified,(I this Company,for he term of years specified above from inception date shown above at 12:01 A.M. (Standard Time)to expiration date shown above at 12:01 A.M. (Standard 'ime) at location of pitopery involved, to an amount not exceeding the amount(s) above specified, does insure the INSURED named above and legal epresentatives,for any,amounts which the INSURED may be entitled to recover under the circumstances defined herein or added hereto. assignment of this policy shall not be valid except with the written consent of this Company. 'his policy is made and accepted subject to the foregoing provisions and stipulations and those hereinafter stated,which are hereby made a 'art of this policy, xgether with such other provisions,stipulations and agreements as may be added hereto,as provided in this policy. • ,GR 257(06/92) ROPPL • . +t ENDORSEMENT AGRICULTU"AL INSURANCE COMPANY Insured: i PUBLIC ENTITY PROPERTY INSURANCE PROGRAM Endorsement No.: P Policy No.: CPP 3211352 Additional: X R turn: Effective Date Premium: $ 22 537. of Endorsemen SEPTEMBER 1, 2000 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. IN CONSIDERA ION OF THE ADDITIONAL PREMIUM OF $22.537., IT IS UNDERSTOOD AND AGREED THAT WASHINGTON ITIES INSURANCE AUTHORITY IS HEREBY ADDED PER THE ATTACHED DECLARATION. THE NAMED INSUR:D IS MORE FULLY DEFINED IN ITEM 1 OF THE RESPECTIVE DECLARATION OF REINSURANCE AND ENDORS:MENT #17 ATTACHED TO THIS ENDORSEMENT. THE ELECTRONIC DATE RECOGNITION EXCLUSION AN' THE AUTOMATIC ACQUISITION CLAUSE ARE MORE FULLY DEFINED IN ENDORSEMENT NO. 16, AND NO. 18, RESPECTIVELY, AS ATTACHED TO THIS ENDORSEMENT. I ! • ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED . A . ( HO E E RESEN A VE) GAO 3016-12/99 11/20/00 TC/ma DECLARATIONS PAGE 1) REI SURED: WASHINGTON CITIES INSURANCE AUTHORITY (WCIA) As mor: fully described in "NAME OF INSURED" (Section I, Item 1) and Named Insured Endors:ment No. 17 2) MAI ING ADDRESS: P. O. BOX 1165 RENTON, WA 98057 3) POLICY PERIOD: SEPTEMBER 1, 2000 12:01AM TO SEPTEMBER 1, 2001 12:01AM 4) LIMI AND SUB-LIMITS OF LIABILITY: 1. $ 500,000,000 Per Occurrence: All Perils, Coverages and Insureds/Members combined, subject to - sub-limits Sub limits: A. 25S 000 000 Per Occurrence and in the Annual Aggregate as respects-Flood-all coverages i B. $ 101 000 000 Per Occurrence and in the Annual Aggregate as respects Earthquake Shock- -all 'coverages C. $ 100,000,000 Combined Business Interruption, Extra Expense, Rental Income and Tax Interruption D $' 25,000,000 Miscellaneous Unnamed Locations and automatic acquisition as respects existing and new members 111 as per endorsement No. 18 (including earthquake) No new members for onl a tomobile coverage E. $ 25 000,000 Landscaping,tees,sand traps,greens and athletic fields F. $ 25,000,000 Errors&Omissions G. $ 25,000,000 Course Of Construction (including new for project values up to$25,000,000) i H. $1, 1,000,000 Money&Securities I. $ 10,000,000 Unscheduled Fine Arts J. $;I 500,000 Accidental Contamination K. $I 1,000,000 Tunnels, bridges, dams, catwalks(except those not for public use) ,roadways, highw-ys, streets, sidewalks,culverts,street lights and traffic signals unless a specific value has beer declared L. $ 100,000,000 Demolition and Increased Cost of Construction due to the enforcement of building cod s $ 25,000,000 Transit $I 1.000,000 Animals; except$100,000 Specially Trained Animals $' 1,000,000 Watercraft under 27 feet or less unless scheduled • $. 50.000 Newly Acquired Vehicles(current members with auto coverage only) • ' $1 Not covered Replacement power extra expense at scheduled utility locations $ _ 5,000,000 Off premises services interruption including extra expense resulting from a covered pe 'I at non- owned/operated locations $ No:Covered Contingent business interruption resulting from a covered peril at non owned/operated ower generating facilities $, Not applicable Per occurrence and in the annual aggregate: Earthquake shock on licensed vehicles, nlicensed vehicles,contractors equipment and fine arts combined for all insureds/members combined that do not purchase optional coverage Item-A): Earthquake Shock As more fullydescribed in "LIMITS OF LIABILITY" (Section I — Item 4) II W.C.I.A.-PEPIP 2000 Declaration 5) DE I UCTIBLE(S): A. "BA-IC"ALL PERILS AND COVERAGES(EXCEPT SPECIFIED PERIL OR COVERAGE DED CTIBLE SHOWN BELOW): Ded ctible: $50,000 Per Occurrence B. SPECI lED PERILS AND COVERAGE DEDUCTIBLES $ 100,000 Per Occurrence—Flood 2% Per Unit of Insurance (Real &Personal Property and Time Element) subject to$100,000 inimum Per Occurrence- Earthquake Shock, except J a. Vehicles or Contractors Equipment-$25,000 Per Vehicle/Item subje t to $100,000 maximum as respects the perils of Earthquake or Flood b. Fine Arts -$50,000 Per Occurrence—Earthquake or Flood $1 50,800 Per Occurrence-vehicle property damage $1 50,800 Per Occurrence-vehicle collision damage $, 1,100 Per Occurrence-Specially Trained Animals $500,800 Per Occurrence -Tunnels, bridges, dams, catwalks ( except those not for public use) , roadways, highways, streets, sidewalks, culverts, street lights and traffic signals unless a specific value has been declared 24 ho r waiting period—All:Perils: Service Interruption $I10,800 -Course of Construction—All Perils except Earthquake & Flood As more fully described in " DEDUCTIBLE PROVISIONS" ( Section I—Item 5) 6) OPT!/NAL COVERAGE PARTICIPATION It is u derstood and agreed that the certain Member Agencies participate in Optional Coverage on this "olicy as set forth below: M:MBER AGENCY "BASIC" COVERAGE APPLICABLE DEDUCTIBLE OPTIONAL COVERAGES*1 %All member per Named $ 50,000 A, B, C, E In-ured Endorsement No. 17 r *OP IONAL COVERAGES IDENTIFICATION: A) Earthquake Shock B) Licensed Vehicles C) Contractors Equipment/Unlicensed Vehicles D) Scheduled Fine Arts E) Flood 4,4 W.CJ.A. EPIP 2000 Declaration Endorsement No. 16 ELECTRONIC DATE RECOGNITION EXCLUSION It is ereby understood and agreed that all members and named insureds have coy:rage as described and defined in Endorsement No. 14 — Electronic Date Recognition Exclusion-Wordings A It is urther understood and agreed that as respects members and named insu eds listed below, Electronic Date Recognition Exclusion — Wordings A is herby deleted and replaced with Endorsement no. 15- Electronic Date Recognition Exclusion —Wordings B (All Risks Write Back). This change applies to the following members: All members of Washington Cities Insurance Authority (WCIA) ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED. W. C. I.A. - PEPIP 2000 Endor.ement No. 16 • • ENDORSEMENT NO. 17 NAMED INSURED-MEMBER SCHEDULE The members of the WASHINGTON CITIES INSURANCE AUTHORITY (WCIA) are: The Members of the Washington Cities Insurance Authority are: A Regional Coalition for Housing Town of La;Conner City of Aberdeen City of Lacey City of Arlington City of Lake Forest Park City of,Auburn City of Lake Stevens City of Bainbridge Island City of Leavenworth City of Battle Ground City of Long Beach Benton County Emergency Services City of Longview City of Bothell City of Mabton City of Burien City of Maple Valley City of Camas City of Marysville City of Centralia Marysville Fire District • City of Chehalis City of McCleary City of Chelan City of Medical Lake City_of Clarkston City of Medina City of Clyde Hill City of Mercer Island Town of Coupeville City of Mill'Creek City of Covington City of Milton Cowlitz Sewer Operating Board City of Monroe City of Des Moines Monroe Fire District Eastside Public Safety Commission City of Montesano City of Edgewood , City of Mount Vernon City of Edmonds City of Mountlake Terrace City of Elma City of Mukilteo Emergency Services Coord. Agency City of Newcastle City of Enumclaw City of Normandy Park City of Grandview City of North Bonneville City of Goldendale City of Ocean Shores Grays Harbor Communications City of Pacific City of Hoquiam City of Olympia City of Issaquah Penninsula Communications City of Kelso t. City of Port Angeles City of Kenmore City of Port Townsend City of Kirkland WCIA—2000 Form Endorsement#17 .d i ••, ail ' • ENDORSEMENT NO. 17 NAMED INSURED-MEMBER SCHEDULE The members of the WASHINGTON CITIES INSURANCE AUTHORITY (WCIA) are: II of Puyallup City Cityof Tukwila Y P City of Renton City of Tumwater City of Richland City of Union Gap City of Sammamish City of University Place City of Shelton Valley Corn City of Shoreline City of Walla Walla Skagit Washington Cities.Insurance A thority(WCIA) Skagit Emergency Communication Center(SECOM) City of Washougal SNOCOM Water Operating Board (WOB) City of Snohomish City of Westport SNOPAC City of Woodinville City of Snoqualmie Town of Woodway City of Stanwood Yakima Valley Conference of 'ovts. Town of Steilacoom City of Zillah City of Sumner • City of Toppenisli WASHINGTON CITIES INSURANCE AUTHORITY (WCIA) shall be deemed the sol- agent of each and every Association/Pool member for the purpose of: 0) giving notice of cancellation, 1(2) giving instructions for changes in the Policy and accepting changes in this Policy and (3) the payment of assessments/premiums or receipt of return assessments/premiums ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED r WC —2000 Form Endorsement#17 ,J I • ENDORSEMENT NO. 18 AUTOMATIC ACQUISITION CLAUSE The provisions of this automatic acquisition clause do not increase 1) the occurrenc- limitis) of liability, 2) the sub-limit(s) of liability or 3) the aggregate limit(s) provisions o this (overage. 1. Existing Named Insured Members Any named insured member at coverage inception may increase or decreas- total insured values for all coverage's and all perils (EXCLUDING CALIFORNIA EARTHQUAKE) purchased at inception subject to a maximum change in values not exceeding $ 25,000,000 at any one time. 11 The reporting of the changes to underwriters and the applicable additional or return premium will be provided to/from the underwriters: o Every 6 months with additional/return premium due/payable The additional/return premium will be determined based on agreed rates. Changes in total insured values exceeding the stated limitation will be reported Immediately to underwriters for acceptance and additional/return premium confirmation. 2.1� Special Provisions Applicable to California Earthquake Coverage Any named insured at coverage inception that purchases California earthquake coverage at inception may increase or decrease total insured values as respects California earthquake coverage subject to a maximum change in values not exceeding NO COVERAGE at anyone time.e g $ The reporting of the changes to underwriters and the applicable additional 'I.or return premium twill be provided to/from the underwriters: o NO COVERAGE The additional/return premium will be determined based on agreed rates. Changes in total insured values exceeding the stated limitation will be reported immediately to underwriters for acceptance and additional/return premium confirmation. PEPIP 2000 . Enid ors ment No. 18 � I I 3. Provisions Applicable to new/deleted Named Insured Members The "First Named Insured" may add/delete named insured members to th coverage herein .provided subject to a maximum change in total insured value exceeding25,000,000 f not $ or one named insured member. any COVERAGE FOR AUTOMOBLIESNEHICLES ONLY CANNOT BE ADDED REGARDLESS OF VALUES CALIFORNIA EARTHQUAKE IS EXCLUDED FROM THIS PROVISION The reporting of new/deleted named insured members to underwriters and the applicable additional or return premium will be provided to/from the underwriters: ❑ Every 6 months with additional/return premium due/payable III The additional/return premium will be determined based on agreed rates. New/deleted named insured members with total insured values exceeding the stated limitation will be reported immediately to underwriters for acceptance and additional/return premium confirmation. I it 4 Provisions Applicable to Optional Coverage's Any named insured member at coverage inception (or added as per provisions in item 3) may effect optional coverage's of 1) Licensed Vehicles, 2) Contractor's equipment / Unlicensed Vehicles or 3) Scheduled Fine Arts subject to a maximum in total insured' values not exceeding100,000optional coverage e $ per co g at any one time. The reporting of the changes to underwriters and the applicable additional or return premium will be provided to/from the underwriters: ❑ Every 6 months with additional/return premium due/payable The additional/return premium will be determined based on agreed rates. Changes in total insured values exceeding the stated limitation will be reported Immediately to underwriters for acceptance and additional/return premium Confirmation. III ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED • .-PEPIP 2000 Endors,ment No. 18 P. E. P. I. P. - USA Washington Cities Insurance Authority(WCIA) Reinsurance Period: 9/1/00 to 9/1/01 • • Binder#000350 SCHEDULE OF REINSURANCE COMPANIES • • Policy#/Reins. Company Certificate Participation ' Premium Reinsuring Companies of:(WCIA) A) (association policy no.) $ 14,939.72 Reinsurance Certificate NO. LU 002 9117 Swiss Re New Markets/SR International 13.00% 1 XL Europe Insurance 12.50% Subtotal 25.50% B) Reinsuring Company&Lloyds Syndicate&Number of:(WCIA) (association policy no.) $223,118.28 Reinsurance Certificate NO. LU 002 9117 • Munich American Risk Partners/Great Lakes 11.25% Wellington Syndicate WEL2020 8.500% M.E.Brockbank Syndicate MDR 861 /MEB 1209/NJM 588/MEB 1209 10.625% Harvey Bowring Syndicate WEH 362/HRB 823 6.375% S.J. Catlin Syndicate 1003/2003 4.250% ACE Glob:I Markets Syndicate AGM 2488 4.250% F.R.Whit: Syndicate 190 4.250% Subtotal 49.50% • C) Reinsurin• Insu = ca Companies&Lloyds Syndicate/Number of:(WCIA) (association policy no.) • •50 000 010 •rima Westches er Fire Insurance Company RAL 646 202 12.50% 47,891.55 Coregis In-urance Co. 651-008823 7.50% 28,734.93 450 000 010 excess of 50 000 000 • D.P.Mann •yndicate 435(8.333%)and Cox Property&Casualty 2027(4.167%) Included above Exces- ($450MM xs$50MM) Reinsurance Certificate No. LU 002 9345 , 13,522.32 • 500 000 010 Loss Limit Agricultural Insurance Co. CPP 321 1352 5.00% 22,537.20 • • Subtotal 25.00% TOTAL /00.00% $ 0,744.00 • • f?.EFfI?:20OfENSEIEAfCE::::i::>:::::<::<:>:::: >::»:'.>:<.::»:<::::i::::?>::::>:'.:>:::>::>::» :: :: f • IL 00 17 11 98 COMMON POLICY CONDITIONS All Coverag- Parts included in this policy are subject to the following conditions. A. Cancell•tion b. Give you reports on the conditiors we find; 1. The rst Named Insured shown in the Declara- and tions may cancel this policy by mailing or de- c. Recommend changes. li'eri g to us advance written notice of can- 2. We are not obligated to make any inspections, cellat on. surveys, reports or recommendation and any 2. We ay cancel this policy by mailing or deliv- such actions we do undertake relate only to in- ering to the first Named Insured written notice surability and the premiums to be charged. We of ca cellation at least: do not make safety inspections. We do not un- a. 1• days before the effective date of can- dertake to perform the duty of any person or c;llation if we cancel for nonpayment of organization to provide for the health or safety • pr-mium; or of workers or the public. And we do not warrant that conditions: b;! 3. days before the effective date of can- a. Are safe or healthful; or cellation if we cancel for any other reason. 3. 'A a ill mail or deliver our notice to the first b. Comply with laws, regulations, codes or Nam=d Insured's last mailing address known to standards. us. 3. Paragraphs 1. and 2. of this condition apply 4. Notic: of cancellation will state the effective not only to us, but also to any rating, advisory, date if cancellation. The policy period will end rate service or similar organization which on th-t date. makes insurance inspections, surveys, reports or recommendations. . • 5. If(this policy is cancelled, we will send the first Name. Insured any premium refund due. If we 4. Paragraph 2. of this condition does not apply cance , the refund will be pro rata. If the first to any inspections, surveys, reports or recom- Name• Insured cancels, the refund may be mendations we may make relative to' certifica- less t an pro rata. The cancellation will be ef- tion, under state or municipal statutes, ordi- nances or regulations, of boilers, pressure ves- fectiv: even if we have not made or offered a refun•. sels or elevators. 6. If hob, e is mailed, proof of mailing will be suf- E. Premiums fluent proof of notice. The first Named Insured shown in the Declara- B. Changes tions: This policy contains all the agreements between 1. Is responsible for the payment of all premiums; • you and us concerning the insurance afforded. and The first Named Insured shown in the Declara- 2. Will be the payee for any return pre iums we tions Is a thorized to make changes in the terms pay. of this po icy with our consent. This policy's terms F. Transfer Of Your Rights And Duties Under can be a ended or waived only by endorsement This Policy issued by us and made a part of this policy. C. Examina ion Of Your Books And Records Your rights and duties under this policy may not be transferred without our written consent except We may -xamine and audit your books and rec- in the case of death of an individual n med in- ords as th-y relate to this policy at any time during sured. the policy period and up to three years afterward. If you die, your rights and duties will e trans- D. Inspectio s And Surveys ferred to your legal representative but only while 1. We ha e the right to: acting within the scope of duties as your egal rep- resentative. Until your legal representati a is ap- a.' Ma e inspections and surveys at any time; pointed, anyone having proper temporary custody _ of your property will have your rights'' and duties but only with respect to that property. IL 00 1711 9 Copyright, Insurance Services Office, Inc., 1998 Pa g e 1 of 1 0 CITY OF RENTON FEB 0 6 2003 �a RECEIVED ace u s a CITY CLERKS OFFICE AIRPORT OWNERS AND OPERATORS GENERAL LIABILITY POLICY ACE PROPERTY AND CASUALTY INSURANCE COMPANY 1601 Chestnut Street, P. O. Box 41484 Philadelphia, PA 19101-1484 IN WITNESS WHEREOF, ACE Property and Casualty Insurance Company has caused this policy to be executed and attested. This policy is a valid contract when countersigned by an authorized representative (where required by law). GEORGE O. MULLIGAN, Secretor,' SUSAN RIVERA. President AAP200 (11-99) TM ace usa DECLARATIONS This Insurance Policy is issued By: ACE PROPERTY AND CASUALTY INSURANCE COMPANY Policy Number:AAP N00053983 1601 Chestnut Street, Philadelphia, Pennsylvania 19101 Renewal of: AAP N00032815 Named Insured and Mailing Address: City of Renton 1055 S. Grady Way Renton Washington Zip: 98055 The Named Insured is: A Public Corporation Location of the Airport(s) You Own or Operate: RNT Renton Municipal Airport, Renton, WA W36 Will Rogers Wiley Post Memorial Seaplane Base, Renton, WA Policy Period: From: January 1,2003 To: January 1,2004 at 12.01 a.m.Standard Time at your mailing address shown above. In return for the payment of the premium, and subject to all of the terms of this policy, we agree with you to provide the insurance as stated in this policy. Limits of Insurance: Products-Completed Operations Aggregate Limit $50,000,000 Personal Injury and Advertising Injury Aggregate limit $50,000,000 Malpractice Aggregate Limit $50,000,000 Each Occurrence Limit $50,000,000 Fire Damage Limit Any One Fire $100,000 Medical Expense Limit Any One Person $3,000 Hangarkeepers Limit Any One occurrence $50,000,000 Hangarkeepers Limit Any One Aircraft $50,000,000 Non-Owned Aircraft Liability Limit Any One Occurrence $50,000,000 Deductibles: Each Occurrence or Offense Deductible Nil Aggregate Deductible Nil Premium: Advance Premium $32,862 Extended Coverage Endorsment AAP 203 (11-01) Not Insured Endorsement Premium Included Total Advance Premium $32,862 Policy Forms and Endorsements are described in the attached Schedule of E orsements. Signature By Authorized Representative AAP201 (11-99) �i Policy Number: AAF'":'10053983 Effective Date: January 1,2003 Insured: City of Renton SCHEDULE OF ENDORSEMENTS The endorse ents listed below form part of this policy at inception and are deemed to have been signed by the same Aut orized Representative that signed the Declarations (form AAP 201 11/99). Endorsement No. TITLE and Edition Date Amendment . Noise and Pollution and Other Perils Exclusion AAP 204 (11/99) Extension Sp:cific Excess Liability Insurance -Automobile Liability AAP 211 (11/99) Immunity er Endorsement , AAP 220i (11/99) Nuclear Risks Exclusion Clause AAP 237 (11/99) Excess Auto obile Liability AAP 238 (11/99) Date Recogni ion Exclusion Endorsement AAP 256 (11/99) Premium iAud t Endorsement AAP 257 (11/99) Washington •hanges - Cancellation and Nonrenewal AAP WA (11/99) Washington •hanges 9001-WA (11/99) J AAP 201 S (11/99) Alft i j AIRPORT OWNERS AND OPERATORS LIABILIT vi'OLICY INDEX Please Read Your Policy SECTION I -COVERAGES 2 COVE- A GE A. BODILY INJURY AND PROPERTY DAMAGE LIABILITY 2 In-uring Agreement ,2 E lusions 21 COVE- A GE B. PERSONAL AND ADVERTISING INJURY LIABILITY 6 In.uring Agreement 6 1 E Iclusions 6 COVE' AGE C. MEDICAL PAYMENTS 17 In..uring Agreement 7 E iclusions 7 COVE AGE D. HANGARKEEPERS LIABILITY 8 In'.uring Agreement $ E clusions 8 COVE- A GE E. NON-OWNED AIRCRAFT LIABILITY 8 In.uring Agreement 8 E clusions 9 SUPPL MENTARY PAYMENTS -COVERAGES A, B, D AND E 10 SECTION II -COMMON COVERAGE EXCLUSIONS 11 SECTION II -WHO IS AN INSURED 12 SECTION I -LIMITS OF INSURANCE AND DEDUCTIBLES 14 �SECTION -CONDITIONS 15 SECTION I - DEFINITIONS 19 ' II AAP 20 2I�(11 99) Page 1 of 23 (7) "Aircraft' in your care, custody or control or "aircraft" while being serviced, handled or maintained by you. Pairagraph (2) of this exclusion does not apply if the premises are "your work" and were never occupied, rented or held for rental by you. Paragraphs (3), (4), (5) and (6) of this exclusion do not apply to liability assumed under a sidetrack agreement. Paragraph (4) of this exclusion does not apply to"property damage": (a)1 to an "auto" or "mobile equipment" when your control is solely traffic control, but this exception does not override Exclusion j. above; (b) to an "auto"while on the"airport"; or (c) to baggage or cargo handled by you, provided you are not handling the baggage or cargo as bailee for hire. Paragraph (6) of this exclusion does not apply to " roe damage" included in the "products- completed PPY "property g P completed operations hazard". Pairagraph (7) of this exclusion does not apply to "property damage" to "aircraft" when your control is solely traffic control, but this exception does not override Exclusion j above. I. ' D Image to Your Product "Property damage"to"your product" arising out of it or any part of it. m. 'I D mage to Your Work , "P operty damage" to "your work" arising out of it or any part of it and included in the "p oducts-completed operations hazard". Th s exclusion does not apply if the damaged work or the work out of which the damage arises w s performed on your behalf by a subcontractor. n. D mage to Impaired Property or Property Not Physically Injured "Property damage" to "impaired property" or property that has not been physically injured, arising out of: (1) A defect, deficiency, inadequacy or dangerous condition in "your product" or"your work"; or ; (2) A delay or failure by you or anyone acting on your behalf to perform a contract or 'i agreement in accordance with its terms. This exclusion does not apply to the loss of use of other property arising out of sudden and accidental physical injury to "your product" or"your work" after it has been put to its intended use. o. Recall of Products,Work or Impaired Property D mages claimed for any loss, cost or expense incurred by you or others for the loss, of use, wi hdrawal, recall, inspection, repair, replacement, adjustment, removal or disposal of: (1 "Your product'; (2) "Your work"; or (3) "Impaired property"; AAP 202(11- 9) Page 5 of 23 if -uch product, work or property is withdrawn or recalled from the market or from use by any pe son or organization because of a known or suspected defect, deficiency, inadequacy or da gerous condition in it. Excl,usi•ns c. through o. do not apply to damage by fire to premises rented to you. A separate limit of incur-.nce applies to this coverage as described in LIMITS OF INSURANCE (SECTION IV). COVERAGE B. PERSONAL AND ADVERTISING INJURY LIABILITY 1. Insuirin• Agreement . a. W: will pay those sums that you become legally obligated to pay as damages because of "p:rsonal injury" or "advertising injury" to which this insurance applies. We will have the right an. duty to defend any "suit" seeking those damages. We may at our discretion investigate an offense and settle any claim or"suit"that may result, but: (1) The amount we will pay for damages is limited as described in LIMITS OF INSURANCE (SECTION IV); and (2) Our duty to defend ends when we have used up the applicable LIMITS OF INSURANCE in the payment of judgments or settlements under Coverage B. N• other obligation or liability to pay sums or perform acts or services is covered unless ex•licitly provided for under SUPPLEMENTARY PAYMENTS- COVERAGES A, B, D AND E. b. Th s insurance applies to: (1) "Personal injury" caused by an offense excluding advertising, publishing, broadcasting or telecasting done by or for you; (2) "Advertising injury" caused by an offense committed in the course of advertising your goods, products or services; but only if: (a) The offense was committed or alleged to have been committed unintentionally by you or any of your employees while engaged in their employment by you; and (b) The offense was committed or alleged to have been committed in the "coverage territory" during the policy period and arises out of your"airport operations" 2. Exciusi•ns . This ins rance does not apply to: a. ; "Personal injury" or"advertising injury": ' (1 Arising out of any oral or written publication of material, if done by or at the direction of the insured with knowledge of its falsity; (2 Arising out of any oral or written publication of material whose first publication took place before the beginning of the policy period; (3 Arising out of the willful violation of a penal statute or ordinance committed by or with the consent of the insured; (4 For which the insured has assumed liability in a contract or agreement. This exclusion does not apply to liability for damages that the insured would have in the absence of the contract or agreement; or AAP 202'(11-•9) Page 6 of 23 (5 Arising out of the conduct of any airmeet, contest or exhibition permitted, sponsored or participated in by any insured. This exclusion does not apply to static displays. b. "A vertising injury" arising out of: (1) Breach of contract, other than misappropriation of advertising ideas under an implied contract; (2 The failure of goods, products or services to conform with advertised quality or performance; ' (3 The wrong description of the price of goods, products or services; or 1 (4) An offense committed by an insured whose business is advertising, broadcasting, publishing or telecasting. c. I A y offense which was committed or alleged to have been committed in any State which does no recognize a cause of action for that offense based on negligence. '1 COVERAG C. MEDICAL PAYMENTS 1 1. Insyrin Agreement . , a. i W will pay medical expenses as described below for"bodily injury" caused by an accident: 1 (1 On your"airport"; or ' (2 Because of your"airport operations"; pr vided that: (1 The accident takes place in the"coverage territory"and during the policy period; ' (2 The expenses are incurred and reported to us within one year of the date of the accident; and (3 The injured person submits to examination, at our expense, by physicians of our choice as often as we reasonably require. b. ' W will make these payments regardless of fault. These payments will not exceed the applicable LIMITS OF INSURANCE. We will pay reasonable expenses for: (1 First aid at the time of an accident; ' (2 Necessary medical, surgical, x-ray and dental services, including prosthetic devices; and (3 Necessary ambulance, hospital, professional nursing and funeral services. 1 2. Exclusi•ns . We will of pay expenses for"bodily injury": a. T• any insured. b. i T• a person hired to do work for or on behalf of any insured or a tenant of any insured. c. T• a person injured on that part of premises you own or rent that the person normally o upies. d. T• a person,whether or not an employee of the insured, if benefits for the "bodily injury" are p-yable or must be provided under a workers' compensation or disability benefits law or a si ilar law. AAP 202!(11- 9) Page 7 of 23 1 e. T• a person injured while taking part in athletics. f. In,luded within the"products-completed operations hazard". g. E cluded under Coverage A. COVERAG D. HANGARKEEPERS LIABILITY 1. Insurin• Agreement . a. W- will pay those sums that the insured becomes legally obligated to pay as damages be -use of physical injury to "aircraft" to which this insurance applies. We will have the right j an. duty to defend any "suit" seeking those damages. We may at our discretion investigate an "occurrence"and settle any claim or"suit"that may result, but: (1 The amount we will pay for damages is limited as described in LIMITS OF INSURANCE (SECTION IV); and (2 Our duty to defend ends when we have used up the applicable LIMITS OF INSURANCE in the payment of judgments or settlements under Coverage D. N other obligation or liability to pay sums or perform acts or services is covered unless ex licitly provided for under SUPPLEMENTARY PAYMENTS - COVERAGES A, B, D AND E. b. T is insurance applies to physical injury only if: (1 The "aircraft" is in your care, custody or control or while the "aircraft"is being serviced, handled or repaired by you; and (2 The physical injury to "aircraft" is caused by an "occurrence" that takes place on the premises of the"airport"; and (3 The physical injury to "aircraft"occurs during the policy period. c. D mages because of physical injury include damages claimed for all resultant loss of use of su h aircraft. 2. Exclus°ons . This insurance does not apply to: a. Physical injury to"aircraft"you own. b. I Physical injury to"aircraft"you rent, lease or which are on loan to you. c. Physical injury to"aircraft"while"in flight". d. ; Physical injury to "aircraft"for which the insured is obligated to pay damages by reason of the assumption of liability in a contract or agreement. This exclusion does not apply to liability that 1 th• insured would have in the absence of the contract or agreement. COVERG• E. NON-OWNED AIRCRAFT LIABILITY 1. Insii ring_• Agreement . a. W- will pay those sums that the insured becomes legally obligated to pay as damages because of"bodily injury" or "property damage" to which this insurance applies. We will have I I AAP 202'F,(11-•9) Page 8 of 23 ' thg right and duty to aefend any "suit" seeking those damages. We may at our discretion investigate any"occurrence" and settle any claim or"suit"that may result, but: (1) The amount we will pay for damages is limited as described in LIMITS OF INSURANCE (SECTION IV); and (21 Our duty to defend ends when we have used up the applicable limit of insurance in the payment of judgments or settlements under Coverage E. No other obligation or liability to pay sums or perform acts or services is covered unless explicitly provided for under SUPPLEMENTARY PAYMENTS - COVERAGES A, B, D AND E. b. ; This insurance applies to"bodily injury"and "property damage" only if: (1 The "bodily injury" or"property damage" is caused by an "occurrence" that takes place in the"coverage territory"; and (2 The "bodily injury"or"property damage" occurs during the policy period; and , (3) The "bodily injury" or"property damage" arises out of your use of any aircraft, or its use on your behalf, provided that: (a) The aircraft is not owned by you in whole or in part; (b) The aircraft is not on lease to you; (c) The aircraft is not subject to a lease-purchase agreement to which you are a party; and (d) The aircraft is used in connection with your"airport operations". c. Damages because of "bodily injury" include damages claimed by any person or organization f r care, loss of services or death resulting at any time from the "bodily injury". 2. Exclusions . This in urance does not apply to: a. ' "Bodily injury" or "property damage" expected or intended from the standpoint of the insured. T'his exclusion does not apply to "bodily injury" resulting from the use of reasonable force to ' p otect persons or property. b. " odily injury" or "property damage" for which the insured is obligated to pay damages by reason of the assumption of liability in a contract or agreement. This exclusion does not apply to liability for damages: (1) Assumed in a contract or agreement that is an "insured contract" provided the "bodily injury" or "property damage" occurs subsequent to the execution of the contract or agreement; or ' (, ) That the insured would have in the absence of the contract or agreement. c. " roperty damage"to the aircraft. d. ny obligation of the insured under a workers' compensation, disability benefits or unemployment compensation law or any similar law. e. Bodily injury"to: 1) An employee of the insured arising out of and in the course of employment by the insured; or • AAP 202(1 -99) Page 9 of 23 I ' (2 The spouse, child, parent, brother or sister of that employee as a consequence of (1) above. T is exclusion applies: (1 Whether the insured may be liable as an employer or in any other capacity; and 1 (2 To any obligation to share damages with or repay someone else who must pay damages because of the injury. T is exclusion does not apply to liability assumed by the Insured under an "insured contract". f. II " odily injury"or"property damage" included in the "products-completed operations" hazard. g. " odily injury" or "property damage" arising out of your use of any aircraft or its use I on your b half, if the aircraft is operated "in flight" by a pilot who is not properly certificated and rated b the F.A.A. for the flight involved. This exclusion does not apply if the aircraft so operated is without your knowledge or consent. h. 1 "Froperty damage"to: (1) Property you own, rent or occupy; ( .) Property loaned or leased to you; I ( ) Personal property in the care, custody or control of the insured. . ' SUPPLEM: NTARY PAYMENTS -COVERAGES A, B, D AND E , We will pay with respect to any claim or"suit"we defend: 1 1. Alllexp-nses we incur. 2. Up'1to '.250 for cost of bail bonds required because of accidents or traffic law violations arising out of the, us- of any vehicle to which the Bodily Injury Liability Coverage applies. We do not have to furnish these bonds. 3. The •st of bonds to release attachments, but only for bond amounts within the applicable LIMITS OF IN' URANCE (SECTION IV). We do not have to furnish these bonds. ' 4. All reasonable expenses incurred by the insured at our request to assist us in the investigation or defen a of the claim or"suit", including actual loss of earnings up to $100 a day because of time off froIm ork. 5. All co is taxed against the insured in the"suit". 6. Preju gment interest awarded against the insured on that part of the judgment we pay. If.we make an off r to pay the applicable LIMITS OF INSURANCE, we will not pay any prejudgment interest based on that period of time after the offer. 7. ARint rest on the full amount of any judgment that accrues after entry of the judgment and before we h-ve paid, offered to pay, or deposited in court the part of the judgment that is within the appli -ble LIMITS OF INSURANCE. These pay ents will not reduce the LIMITS OF INSURANCE. AAP 202(11-99) , Page 10 of 23 I I I SECTION II -COMMON COVERAGE EXCLUSIONS included in this policyare subject to the followingexclusions. All Coverages 1 A. Noise and pollution and other perils. 1. This policy does not cover claims directly or indirectly occasioned by, happening through or in cdnsequence of: ' (al noise (whether audible to the human ear or not), vibration, sonic boom and any phenomena associated therewith, (b) pollution and contamination of any kind whatsoever, (c) electrical and electromagnetic interference, 1 (d) interference with the use of property; unless caused by or resulting in a crash fire explosion or collision or a recorded in-flight emergency causing abnormal aircraft operation. 2. With respect to any provision in the policy concerning our duty to investigate or defend claims, such provision shall not apply and we shall not be required to defend: (a) claims excluded by Paragraph 1; or i (b a claim or claims covered by the policy when combined with any claims excluded by Paragraph 1 (referred to below as"Combined Claims"). 3. In respect of any Combined Claims, we shall (subject to proof of loss and the LIMITS OF INSURANCE) reimburse you for that portion of the following items which may be allocated to the claims covered by the policy: (i) damages awarded against any insured; and ' il (ii) defense fees and expenses incurred by any insured. 4. Nothing herein shall override any radioactive contamination or other exclusion clause attached to or forming part of this policy. B. War, hi-jacking and other perils. This policy does not cover claims caused by: (a) War, invasion, acts of foreign enemies, hostilities (whether war be declared or not), civil war, rebellion, revolution, insurrection, martial law, military or usurped power or attempts at uslurpation of power. (b) Any hostile detonation of any weapon of war employing atomic or nuclear fission and/or fusion il or other like reaction or radioactive force or matter. (c) Strikes, riots, civil commotions or labor disturbances. (d) ,, Any act of one or more persons, whether or not agents of a sovereign Power, for political or to lrorist purposes and whether the loss or damage resulting therefrom is accidental or intentional. (e) Any malicious act or act of sabotage. (f) Confiscation, nationalization, seizure, restraint, detention, appropriation, requisition for title or use by or under the order of any Government (whether civil military or de facto) or public or local authority. AAP 202,(11-99) Page 11 of 23 bli (g) ;Hijacking or any unlawful seizure or wrongful exercise of control of the aircraft or crew in flight p(including any attempt at such seizure or control) made by any person or persons on board the !aircraft acting without the consent of the Insured. Furtherrrore this policy does not cover'claims arising while the aircraft is outside the control of the insured by reason of any of the above perils. The aircraft shall be deemed to have been restored to the control of the insured on the safe return of the aircraft to the insured at;an airfield not excluded by the "coverage territory" of this policy, and entirely suitable for the operation of the aircraft (such safe return shall require that the aircraft be parked With engines shut down and under no duress). C. Radioactive Contamination. 1. 'This policy does not cover: (a) loss or destruction of or damage to any property whatsoever or any loss or expense +, whatsoever resulting or arising therefrom (b) any legal liability of whatsoever nature directly or indirectly caused or contributed to by or arising from ionizing radiations or contamination by radioactivity from any source whatsoever. 2. Los, destruction, damage, expense or legal liability which, but for the provisions of paragraph 1. o 9 f this exclusion, would be covered by this policy, and is directly or indirectly caused or contributed to by or arises from ionizing radiations or contamination by radioactivity from any radioactive materials in course of carriage as cargo under International Air Transport !;Association Regulations, shall (subject to all other provisions of this policy) be covered, q pr•vided that: Ni a. it shall be a condition precedent to our liability that the carriage of any radioactive material shall in all respects comply with the current regulations issued 'by. the. International Air Transport Association relating to the carriage of restricted articles byair; ' b. this policy shall only apply to any claim made against the insured arising out of any accident or incident occurring during the period of.this insurance and any such claim made by the insured against us or by any claimant against the insured shall have been made within three years after the date of the occurrence giving rise to the claim; c. the cover afforded by this paragraph 2. may be cancelled at any time by us giving seven days notice of cancellation. 1 • SECTION III -WHO IS AN INSURED 1. If you are designated in the Declarations as: a. An individual, you and your spouse are insureds, but only with respect to your "airport . operations". b. A partnership or joint,venture, you are an insured. Your members, your partners, and their s ouses are also insureds, but only with respect to your"airport operations". AAP 202'(11-99) Page 12 of 23 c. .' A ublic corporation, you are an insured. Your elective or appointive officers or members of any board or commission or agency of yours are also insureds, but only with respect to your. "airport operations". d. An organization other than a partnership, joint venture or public corporation, you are an insured. Your executive officers and directors are insureds, but only with respect to their duties as your officers or directors. Your stockholders are also insureds, but only with respect to their liability as stockholders. 2. Each of the following is also an insured: a. a Your employees, other than your executive officers, but only for acts within the scope of their errjployment by you with respect to your"airport operations". b. If you are designated in the Declarations as a public corporation, employees of your boards, commissions or agencies, other than executive officers, but only for acts within the scope of their employment by those boards, commissions or agencies with respect to your "airport operations". However, no employee of yours or your boards, commissions or agencies is an insured for: (1) "Bodily injury" or"personal injury"to you or to a co-employee while in the course of his or her employment, or the spouse, child, parent, brother or sister of that co-employee as a consequence of such "bodily injury" or "personal injury", or for any obligation to share damages with or repay someone else who must pay damages because of the injury; or (2), "Bodily injury" or "personal injury" arising out of his or her providing or failing to provide professional health care services; or (3) "Property damage" to property owned or occupied by or rented or loaned to that employee, any of your other employees, or any of your partners or members (if you are a partnership or joint venture). c. ; Any person (other than your employee), or any organization, while acting as your real estate manager. d. , Any person or organization having proper temporary custody of your property if you die, but only: ti (1) With respect to liability arising out of the maintenance or use of that property; and (2) Until your legal representative has been appointed. e. Your legal representative if you die, but only with respect to duties as such. That representative will have all your rights and duties under this policy. 3. With respect to "mobile equipment" registered in your name under any motor vehicle registration law,� any person is an insured while driving such equipment along a public highway with your permission. Any other person or organization responsible for the conduct of such person is also an insured, but only with respect to liability arising out of the operation of the equipment, and, only if no other insurance of any kind is available to that person or organization for this liability. However, no person or organization is an insured with respect to: a. "Bodily injury"to a co-employee of the person driving the equipment; or b. I "Property damage" to property owned by, rented to, in the charge of or occupied by you or the employer of any person who is an insured under this provision. AAP 202;01-99) Page 13 of 23 No person or organization is an insured with respect to the conduct of any current or past partnership or joint venture'that is not shown as a Named Insured in the Declarations. SECTION IV- LIMITS OF INSURANCE AND DEDUCTIBLES A. LIMITS OF INSURANCE 1. T e LIMITS OF INSURANCE (SECTION IV) shown in the Declarations and the rules below fix the most we will pay regardless of the number of: a. Insureds; b. Claims made or"suits" brought; or c. Persons or organizations making claims or bringing "suits". 2. '' The Products-Completed Operations Aggregate Limit is the most we will pay under Coverage A for all damages because of"bodily injury" and "property damage" included in the "products- completed operations hazard". 3. The Personal and Advertising Injury Aggregate Limit is the most we will pay under Coverage B for the sum of all damages because of"personal injury" and "advertising injury". 4. The Malpractice Aggregate Limit is the most we will pay under Coverage A for all damages because of"malpractice". 5. Subject to 2, 3 or 4 above, whichever applies, the Each Occurrence Limit is the most we will pay for the sum of: a. Damages because of all "bodily injury" and "property damage" under Coverages A and E; and b. Medical expenses under Coverage C; and c. Damages because of physical injury to"aircraft" under Coverage D. arising out of one "occurrence"; and d. Damages because of all "personal injury" and "advertising injury" under Coverage B. arising out of one offense. 6. Subject to 5. above, the Fire Damage Limit is the most we will pay under Coverage A for damages because of"property damage"to premises rented to you arising out of any one fire. 7. Subject to 5. above, the Medical Expense Limit is the most we will pay under Coverage C for all medical expenses because of"bodily injury" sustained by any one person. 8. Subject to 5. above, the Hangarkeepers Limit Any One Aircraft is the most we will pay under Coverage D for damages because of physical injury sustained by any one "aircraft" and the Hangarkeepers Limit Any One Occurrence is the most we will pay under Coverage D for physical injury sustained by all "aircraft" in any one "occurrence". 9. Subject to 5. above, the Non-Owned Aircraft Liability Limit Any One Occurrence is the most we will pay under Coverage E for damages because of "bodily injury" and "property damage" arising from one"occurrence". The limits of this policy 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. In that case, the additional period will be deemed part of the last preceding, period for purposes of determining the Limits of Insurance. AAP 202(11-99) Page 14 of 23 'r Bi , B. DEDUCTIBLES 1. Our-ob igation to pay: a. Damages because of,"bodily injury"and "property damage" under Coverages A and E; and b. Medical expenses under Coverage C; and ' c. Damages because of physical injury to "aircraft" under Coverage D arising out of one occurrence; and d. Damages because of"personal injury" and "advertising injury" under Coverage B arising out of any one offense applies only to the amount of damages or medical expenses in excess of the Each Occurrence or Offense Deductible amount stated in the Declarations, but the LIMITS OF INSURANCE applicable to Ea0 Occurrence will not be reduced by the amount of such deductible, nor will Aggregate limits for such coverages be reduced by the application of such deductible amount. 2. + The Aggregate Deductible amount stated in the Declarations is the most you will have to pay folr all deductible amounts under Coverages A, B, C, D and E for all damages and medical expenses. i' 3. The terms'of this insurance, including those with respect to: (af) Our right and duty to defend any"suits"seeking those damages; and (b) Your duties in the event of an "occurrence", claim, or suit 9I apply irrespective of the application of the deductible amount. 4. VI We may pay any part or all of the deductible amount to effect settlement of any claim or suit and, upon notification of the action taken, you shall promptly reimburse us for such part of the deductible amount as has been paid by us. The Aggregate Deductibles of this policy apply-separately to each consecutive annual period and to any'i 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. In that case, the additional period will be deemed the last preceding period for purposes of determining the aggregate deductibles. 1 , , SECTION V-CONDITIONS I 1. Bankruptcy. Bankruptcy or insolvency of the insured or of the insured's estate will not relieve ,us of our obligations under this Policy. 2. Duties n The Event Of Occurrence, Offense, Claim Or Suit. a. ' You must notify us as;soon as practicable of an "occurrence" or an offense which may result in a claim. To the extent(possible, notice should include: ', (1) How, when and where the"occurrence"or offense took place; ' (2) The names and addresses of any injured persons and witnesses; and (3) The nature and, location of any injury. or damage arising out of the "occurrence" or offense. b. If claim is made or"suit" is brought against any insured, you must: S AAP 202i1'I(11-99) Page 15 of 23 pl ' u N 1 1 (1) Immediately record the specifics of the claim or"suit" and the date received; and (2) Notify us as soon as practicable. You must see to it that we receive written notice of the claim or"suit" as soon as practicable. c. You and any other involved insured must: (1) Immediately send us copies of any demands, notices, summonses or legal papers received in connection with the claim or"suit"; (2) Authorize us to obtain records and other information; (3) Fully cooperate with us in the investigation, settlement or defense of the claim or "suit"; and (4) Assist us, upon our request, in the enforcement of any right against any person or organization which may be liable to the insured because of injury or damage to which this insurance may also apply. d. I No insureds will, except at their own cost, voluntarily make a payment, assume any obligation, or incur any expense, other than for first aid, without our consent. II 3. Legal Action Against Us. No,person or organization has a right under this policy: a. To join us as a party or otherwise bring us into a"suit"asking for damages from an insured; or b. To sue us on this policy unless all of its terms have been fully complied with. A person or organization may sue us to recover on an agreed settlement or on a final judgment againsi an insured obtained after an actual trial; but we will not be liable for damages that are not payable under the terms of this policy or that are in excess of the applicable LIMITS OF INSURANCE (SECTION IV). An agreed settlement means a settlement and release of liability signed bby us, the insured and the claimant or the claimant's legal representative. 4. Other Insurance. If other valid and collectible insurance is available to the insured for a loss we cover under Coverage A, B, D or E of this policy, our obligations are limited as follows: a. Primary Insurance This insurance is primary except when b. below applies. If this insurance is primary, our obligations are not affected unless any of the other insurance is also primary. Then, we will share with all that other insurance by the method described in c. below. b. Excess Insurance This insurance is excess over any of the other insurance, whether primary, excess, contingent or on any other basis: (1) That is Fire, Extended Coverage, Builder's Risk, Installation Risk or similar coverage for "your work"; (2) That is Fire insurance for premises rented to you; or (3) If the loss arises out of the maintenance or use of"autos" or watercraft to the extent not subject to Exclusion f. of Coverage A(Section I). (4) That is Aircraft Liability insurance on any aircraft to which Coverage E (Section I) applies. AAP 20211(11-I 99) Page 16 of 23 4', When this insurance is excess, we will have no duty under Coverage A, B, D or E to defend any claim or"suit" that any other insurer has a duty to defend. If no other insurer defends, we II will undertake to do so, but we will be entitled to the insured's rights against all those other insurers. p I When this insurance is excess over other insurance, we will pay only our share of the amount y1 of the loss, if any, that exceeds the sum of: al ( ) The total amount that all such other insurance would pay for the loss in the absence of this insurance; and (2) The total of all deductible and self-insured amounts under all that other insurance. W� will share the remaining loss, if any, with any other insurance that is not described in this ul Excess Insurance provision and was not bought specifically to apply in excess of the Limits of Insurance shown in the Declarations of this Policy. I ' c. i Method of Sharing If all of the other insurance permits contribution by equal shares, we will follow this method also. Under this approach each insurer contributes equal amounts until it has paid its applicable limit of insurance or none of the loss remains, whichever comes first. rl If any of the other insurance does not permit contribution by equal shares, we will contribute by limits. Under this method, each insurer's share is based on the ratio of its applicable limit of h1 insurance to the total applicable.limits of insurance of all insurers. i' 5. Premi m Audit. 11 ' a. �, We will compute all premiums for this policy in accordance with our rules and rates. i b. Premium shown in this policy as advance premium is a deposit premium only. At the close of each audit period we will compute the earned premium for that period. Audit premiums are due y' and payable on notice to the first Named Insured. If the sum of the advance and audit premiums paid for the policy term is greater than the earned premium, we will'return the ;[ excess to the first Named Insured: ; c. 9' The first Named Insured must keep records of the information we need for premium qi computation, and send us copies at such times as we may request. 6. Representations. By accepting this policy, you agree: a. I TIr statements in the Declarations are accurate and complete; b. Tl.ose statements are based upon representations you made to us; and c. V We have issued this policy in reliance upon your representations. 7. Separation Of Insureds. Except with respect to the LIMITS OF INSURANCE (SECTION IV), and any rights or duties specifically assigned in thisi policy to the first Named Insured, this insurance applies separately to each insured against whom claim is made or"suit" is brought. pl i AAP 2021(11- 9) Page 17 of 23 8. Trans er Of Rights Of Recovery Against Others To Us. If the i sured has rights to recover all or part of any payment we have made under this Policy, those rights are transferred to us. The insured must do nothing after loss to impair them. At our request, the ins fired will bring "suit"or transfer those rights to us and help us enforce them. 9. Changes. This p licy contains all the'agreements between you and us concerning the insurance afforded. The first Named Insured shown in the Declarations is authorized to make changes in the terms of this policy with our consent. This policy's terms can be amended or waived only by endorsement issued by us and made a part of this policy. 10. Examination of your books and records. We,may examine and audit your books and records as they relate to this policy at any time during the;policy period and up to three years afterward. 11. Inspections and surveys. • Wei,have the right but are not obligated to: 1. ry ake inspections and surveys at any time; 2. Givell you reports on the conditions we find; and 3. Recommend changes. Any inspections, surveys, reports or recommendations relate only to insurability and the premiums to tbe charged. We do not make safety inspections. We do not undertake to perform the duty of any person or organization to provide for the health or safety of workers or the public. And we do not warrant that conditions: 1. ' Are safe or healthful; or 2. 11 Comply with laws, regulations, codes or standards. This condition applies not only to us, but also to any rating, advisory, rate service or similar organ' ation which makes insurance inspections, surveys, reports or recommendations. 12. Premiums and deductibles. The first Named Insured shown in the Declarations: 1. 11 Is responsible for the payment of all premiums and deductibles; and 2. '' Will be the payee for any return premiums we pay. 13. TraInsf r of your rights and duties under this policy. ai i Your rights and duties under this policy may not be transferred without our written consent except in thel'casle of death of an individual named insured as directed below: If you die, your rights and duties will be transferred to your legal representative but only while acting within the scope of duties as your legal representative. Until your legal representative is appointed, an ,one having proper temporary custody of your property will have your rights and duties but only with respect to that property. AAP 2021 11-99 Page 18 of 23 uI I ' SECTION VI - DEFINITIONS 1. "Advertising injury" means injury arising out of one or more of the following offenses: a. Oral or written publication of material that slanders or libels a person or organization or disparages a person's or organization's goods, products or services; b. Oral or written publication of material that violates a person's right of privacy; c. Misappropriation of advertising ideas or style of doing business; or d. Infringement of copyright, title or slogan. 2. "Aircraft" under Coverage D means any aircraft or its parts or equipment. 3. "Airport" means the Airport(s) designated in the Declarations, including ways and means immediately adjoining such airport(s). 4. "Airport operations" means the ownership, maintenance, use or provision of premises, services and faciilitieS necessary to the operation of the"airport". 5. "Auto" means a land motor vehicle, trailer or semitrailer designed for travel on public roads, including any attached machinery or equipment, but"auto"does not include "mobile equipment". 6. "Bi;dily injury" means: li a. Bodily injury, sickness or disease sustained by a person, including death resulting from any of these at any time; or b. Fright or mental anguish sustained by a person. 7. "Coverage territory" means: a. The United States of America (including its territories and possessions), Puerto Rico and Canada; b. International waters or airspace, provided the injury or damage does not occur in the course of travel or transportation to or from any place not included in a. above; or c. All parts of the world if: (1) The injury or damage arises out of: (a) Goods or products made or sold by you in the territory described in a. above; or (b) The activities of a person whose home is in the territory described in a. above, but is away for a short time on your business; and (B) The insured's responsibility to pay damages is determined in a "suit" on the merits, in the territory described in a. above or in a settlement we agree to. 8. "Impaired property" means tangible property, other than "your product" or "your work", that cannot be used or is less useful because: a. , It incorporates "your product" or"your work" that is known or thought to be defective, deficient, inadequate or dangerous; or b. You have failed to fulfill the terms of a contract or agreement; AAP 202''(11-99) Page 19 of 23 9 41 if such property can be restored to use by: a. The repair, replacement, adjustment or removal of"your product"or"your work"; or b. i Your fulfilling the terms of the contract or agreement. 9. "In'flight" means: a. w With respect to a fixed wing aircraft, from the time the aircraft moves forward in attempting to " , take off until the aircraft has completed its landing run. b. k VYith respect to a rotorcraft, while its rotors are in motion as a result of engine power or autorotation. 1 AI 1 1 10. "In ured contract" means: a. N A lease of premises; 1 I b. 4 A sidetrack agreement; 1 c. Any y easement or license agreement, except in connection with construction or demolition o I6erations on or within 50 feet of a railroad; d. Ah obligation, as required by ordinance, to indemnify a municipality, except in connection with work for a municipality; e. An elevator maintenance agreement; h f. li That part of any other contract or agreement pertaining to your business (including an indemnification of a municipality in connection with work performed for a municipality) under which you assume the tort liability of another party to pay for "bodily injury" or "property damage"to a third person or organization. Tort liability means a liability that would be imposed by law in the absence of any contract or agreement. i An"insured red contract"does not' include that part of any contract or agreement: a. That indemnifies any person or organization for"bodily injury" or"property damage" arising out of construction or demolition operations, within 50 feet of any railroad property and effecting any railroad bridge or'trestle, tracks, road-beds, tunnel, underpass or crossing; b. That indemnifies an architect, engineer or surveyor for injury or damage arising out of: ul (1) Preparing, approving or failing to prepare or approve maps, drawings, opinions, reports, surveys, change orders, designs or specifications; or (2) Giving directions or instructions, or failing to give them, if that is the primary cause of the injury or damage; c. a Under which the insured, if an architect, engineer or surveyor, assumes liability for an injury or damage arising out of the insured's rendering or failure to render professional services, including those listed in b. above and supervisory, inspection or engineering service's; or d. That indemnifies any person or organization for damage by fire to premises rented or loaned to yiu. 11. "Ldading or unloading" means the handling of property: i a. After it is moved from the place where it is accepted for movement into or onto ;an aircraft, watercraft or"auto"; b. �' hile it is in or on an aircraft,watercraft or"auto"; or . i AAP 2021I11(11-99) Page 20 of 23 ' I 41 c. While it is being moved from an aircraft, watercraft or "auto" to the place where it is finally delivered; but "loading or unloading" does not include the movement of property by means of a mechanical device other than a hand truck, that is not attached to the aircraft, watercraft or"auto". 12. "Malprctice means malpractice, error or mistake by a physician, surgeon, nurse, medical technician or other person performing medical services on behalf of an insured in the provision of emerg ncy medical relief. 13. "Mobile equipment" means any of the following types of land vehicles, including any attached machinery or equipment: a. Bulldozers, farm machinery, forklifts and other vehicles designed for use principally off public roads; b. Vehicles maintained for use solely on or next to premises you own or rent; c. Vehicles that travel on crawler treads; d. Vehicles, whether self-propelled or not, maintained primarily to provide mobility to permanently mounted: (1) Power cranes, shovels, loaders, diggers or drills; or (2) Road construction or resurfacing equipment such as graders, scrapers or rollers; e. Vehicles not described in a., b., c. or d. above that are not self-propelled and are maintained primarily to provide mobility to permanently attached equipment of the following types: • (1) Air compressors, pumps and generators, including spraying, welding, building cleaning, geophysical exploration, lighting and well servicing equipment; or (2) Cherry pickers and similar devices used to raise or lower workers; f. Vehicles not described in a., b., c. or d. above maintained primarily for purposes other than the transportation of persons or cargo. However, self-propelled vehicles with the following types of permanently attached equipment are not"mobile equipment" but will be considered "autos": (16 Equipment designed primarily for: (a) Snow removal; (b) Road maintenance, but not construction or resurfacing; (c) Street cleaning; (2) Cherry pickers and similar devices mounted on automobile or truck chassis and used to raise or lower workers; and (3) Air compressors, pumps and generators, including spraying, welding, building cleaning, geophysical exploration, lighting and well servicing equipment. 14. "Occurrence" means an accident, including continuous or repeated exposure to substantially the same general harmful conditions. 15. "Personal injury" means injury, other than "bodily injury", arising out of one or more of the following offenses: II AAP 202,(11- 9) Page 21 of 23 a. Mistaken arrest, detention or imprisonment; b. ,VII Malicious prosecution; c. The wrongful eviction!from, wrongful entry into, or invasion of the right of private occupancy of a room, dwelling or premises that a person occupies by or on behalf of its owner, landlord or ¶ lessor; d. O al or written publication of material that slanders or libels a person or organization or NI disparages a person's or organization's goods, products or services; e. 1 Oal or written publication of material that violates a person's right of privacy; I f. 91 Unintentional discrimination; j g. Misdirection of a passenger by an insured to the wrong aircraft, automobile or other connecting ql transportation; or The, offenses described in paragraph f. of this definition,do not include personal injury arising out of the,employment, past employment or future employment of a person by any insured. I 16. a. 1 "Products-completed operations hazard" includes all "bodily injury" and "property damage" � occurring away from premises you own or rent and arising out of"your product" or"your work" eXcept: (1 Products that are still in your physical possession; or , ' ' (2) Work that has not yet been completed or abandoned. 1 b. 'i'i "Your work"will be deemed completed at the earliest of the following times: (1 When all of the work called for in your contract has been completed. (2 When all of the work to be done at the site has been completed if your contract calls for work at more than one site. (3, When that part of the work done at a job site has been put to its intended use by any person or organization other than another contractor or subcontractor working on the same project. Work that may need service, maintenance, correction, repair or replacement, but which is otherwise complete, will be treated as completed. , 1 c. This hazard does not include "bodily injury" or"property damage" arising out of: (1) The transportation of property, unless the injury or damage arises out of a condition in or on a vehicle created by the"loading or unloading"of it; .' (2) The existence of tools, uninstalled equipment or abandoned or unused materials; I (3) Products or operations for which the classification in this policy or in our manual of rules 1I includes products or completed operations. 17. "Property damage" means: ' ' • a. °1 Physical injury to tangible property, including all resulting loss of use of that property. All such I loss of use shall be deemed to occur at the time of the physical injury that caused it;;or b. g Loss of use of tangible property that is not physically injured. All such loss shall be 'deemed to ii occur at the time of the occurrence that caused it. 1 18. "Suit" means a civil proceeding in which damages because of "bodily injury", "property damage", "personal injury"or"advertising injury"to which this insurance applies are alleged. "Suit" includes: AAP 202b(11.99) Page 22 of 23 41 i Ali 1 a. h' An arbitration proceeding in which such damages are claimed and to which you must submit or dQ submit with our consent; or b. wi A y other alternative dispute resolution proceeding in which such damages are claimed and to which you submit with our consent. 19. "Ydur product" means: a. Any goods or products, other than real property, manufactured, sold, handled, distributed or disposed of by: (1) You; O2I Others trading under your name; or 11 (3) A person or organization whose business or assets you have acquired; and b. II Containers (other than vehicles), materials, parts or equipment furnished in connection with such goods or products. "Your product" includes: a. 11 Warranties or representations made at any time with respect to the fitness, quality; durability, performance or use of"your product"; and b. The providing of or failure to provide warnings or instructions. "Your product" does not include vending machines or other property rented to or located for the use of others but not sold. wl ' 20. "Your vkork" means: a. Work or operations performed by you or on your behalf; and b. � Materials, parts or equipment furnished in connection with such work or operations. "Your work" includes: a. 11 Warranties or representations made at any time with respect to the fitness, quality; durability, 11 performance or use of"your work"; and b. The providing of or failure to provide warnings or instructions. it � 4�� I $I it � !1 ail , tl , AAP 202,1(11-99) Page 23 of 23 it This Endorsement effective January 1,2003 forms part o Policy Number AAP N00053983 Issued to City of Renton ACE Property and Casualty Insurance Company AMENDMENT OF NOISE AND POLLUTION AND OTHER PERILS EXCLUSION ENDORSEMENT This endorsement modifies insurance provided under AIRPORT OWNERS AND OPERATORS GENERAL LIABILITY 'POLICY. Paragraph 1.(b) of Exclusion A. of Common Coverage Exclusions (Section II) does not apply to pollution or contamination of"your product." Authorized Representative Endorsement No. 1 AAP 204 (11/99) 12/03/2002 This Endorsement effective - January 1,2003 forms part of Policy Number AAP N00053983 Issued to City of Renton ACE Property and Casualty Insurance Company 11 EXTENSION - SPECIFIC EXCESS LIABILITY INSURANCE This en;dorsement modifies insurance provided under AIRPORT OWNERS AND OPERATORS GENERAL LIABILITY POLICY. SCHEDULE Underlying Insurance: Automobile Liability Insurance Underlying Limits of Liability ("ultimate net loss"): $14,000,000 each accident/occurrence Underling Insurers: Self Insured Limits of Insurance Each Occurrence Limit: ' $50,000,000 Aggregate Limit: Not Applicable This policy is amended to include the following coverage: COVE GE F. SPECIFIC EXCESS LIABILITY 1. INSU ING AGREEMENT: We will pay those: sums that the insured becomes legally obligated to pay as damages because of bodily injury or property damage to which this insurance applies. • b:1 This insurance applies to bodily injury or property damage only if: (1) The bodily injury or property damage is caused by an "occurrence"that takes place in the "coverage territory"; and (2) The bodily injury or property damage occurs during the policy period; and; (3) The bodily injury or property damage arises out of the hazards covered by and defined in the underlying insurance described in the Schedule. H (4) The bodily injury or property damage arises out of your"airport operations". EXCLUSIONS: 2. Triis }nsurance is subject to the Common Coverage Exclusions (Section II) of this policy and, in addition, the same exclusions which are contained in the underlying insurance shown in the Schedule, but only to the extent that they do not conflict with the Common Coverage Exclusions (Section II) of this policy. Endorsement No. 2 AAP 211I (11/99) Page 1 of 3 12/03/2002 This Endorsement effective January 1,2003 forms part of Policy Number AAP N00053983 Issued to City of Renton , ACE Property and Casualty Insurance Company EXTENSION -'SPECIFIC EXCESS LIABILITY INSURANCE (CONT'D) 3. ATTACHMENT OF LIABILITY AND LIMITS OF LIABILITY: We will pay under Coverage F only after the underlying insurers shown in the Schedule have paid or have been held liable to pay the full amount of the underlying limits of liability as shown in the Schedule. � I The nost we will pay under Coverage F regardless of the number of: al. Insureds; b' Claims made or"suits" brought; or c. Persons or organizations making claims or bringing "suits" is the Each Occurrence Limit shown in the Schedule subject, if applicable, to the Aggregate Limit showr in the Schedule. 4. CON'ITIONS: alj This insurance is subject to the same terms and conditions contained in or added to the underlying insurance prior to the happening of an "occurrence" for which a claim is made under this policy. This condition 4.a. does not apply to the premium, our obligation to investigate and defend, the renewal agreement (if any) and the limits of insurance. b'. The underlying insurance shall be maintained in full effect during the policy period, but: { (1) If the aggregate limit contained in the underlying insurance is reduced or exhausted because of payment of claims, this policy will apply in excess of the reduced aggregate limit or will apply as underlying insurance if the aggregate limit is exhausted. (2) If the insured fails to comply with this condition, this policy shall only apply; to the same extent as would have been the case had the insured complied with this condition. c. If a claim or claims arise which appear likely to exceed the underlying limits of liability the insured must not incur any"costs"without our consent. di:" "Costs" incurred by or on behalf of the insured with our consent and for which the insured is not covered by the underlying insurers, will be apportioned as follows: (1) As respects claims which are settled before trial for an amount which does not exceed the underlying limits of liability, we will not pay any"costs". (2) As respects claims which are settled before trial for an amount which exceeds the underlying limits of liability, we will pay the same percentage of the "costs" as the percentage we pay of the whole "ultimate net loss". Endorsement No. 2 ni I AAP 21 (11/99) Page 2 of 3 12/03/2002 This Endorsement effective January 1,2003 -- forms part of Policy Number AAP N00053983 Issued to City of Renton ACE Pr 'perty and Casualty Insurance Company EXTENSION -;SPECIFIC EXCESS LIABILITY INSURANCE (CONT'D) (3) If the insured does not appeal a judgment which exceeds the underlying limits of liability, we may elect to conduct such an appeal at our own expense including any associated court costs and interest, but the most we will pay for such an appeal is limited to the limits of insurance shown in the Schedule, plus the expenses of the appeal. e All recoveries or payments recovered or received subsequent to a claim settlement under this policy shall be applied as if recovered or received prior to such settlement. All necessary adjustments shall then be made between you and us. 5. DEFINITIONS: ai'' The term "ultimate net loss" means the amount payable in settlement of the liability of the rl insured after making deductions for all recoveries and for other valid and collectible insurances, excepting however the underlying insurance and shall exclude all expenses and "costs". b The term"costs" means interest accruing after entry of judgment, investigation, adjustment and legal expense (excluding, however, all expenses for salaried employees and general retainer fees for counsel normally paid by the insured). i 6. Section V of this policy shall apply to this insurance except condition 4. (Other Insurance). 4Ii i 11 ,4, 1 . Authorized Representa i- Endorsement No. 2 AAP 211 (11/99) Page 3 of 3 12/03/2002 This Endorsement effective January 1,2003 forms part o Policy Number AAP N00053983 Issued to City of Renton ACE Property and Casualty Insurance Company IMMUNITY WAIVER ENDORSEMENT This endorsement modifies insurance provided underAIRPORT OWNERS AND OPERATOR GENERAL LIABILITY POLICY. We will not defend any"suit" seeking damages under Coverages A, B, D,'or E on the basis that the insured is not liable due to the performance of governmental functions, unless we are required by statute or are requested by you. Authorized Representative Endorsement No. 3 AAP 220 (11/99) 12/03/2002, This Endorsement effective - January 1,2003 forms part of Policy Number AAP N00053983 Issued tub City of Renton ACE Property and Casualty Insurance Company NUCLEAR RISKS EXCLUSION CLAUSE It is understood and agreed that the Radioactive Contamination exclusion under part C. of the Common Coverage Exclusions (Section II) is deleted and replaced with the following: (1) Tpis Policy does not cover: (i) loss of or destruction of or damage to any property whatsoever or any loss or expense whatsoever resulting or arising therefrom or any consequential loss (i') any legal liability of;whatsoever nature directly or indirectly caused by or contributed to by or arising from: (a) the radioactive,toxic, explosive or other hazardous properties of any explosive nuclear assembly 1'' or nuclear component thereof; (b) the radioactive properties of, or a combination of radioactive properties with toxic; explosive or other hazardous properties of, any other radioactive material in the course of carriage as cargo, including storage or handling incidental thereto; (c) ionizing radiations or contamination by radioactive form, or the toxic, explosive or other hazardous properties of, any other radioactive source whatsoever. (2) I0is understood and agreed that such radioactive material or other radioactive source in paragraph (qi)(b) and (c) above shall'not include: (i) depleted uranium and natural uranium in any form; (i) radioisotopes which have reached the final stage of fabrication so as to be usable for any 4 scientific, medical, agricultural, commercial, educational, or industrial purpose. (3) This Policy, however, does not cover loss of or destruction of or damage to any property or any consequential loss or any legal liability of whatsoever nature with respect to which: (i) the Insured under ;this Policy is also an insured or an additional insured under any other insurance policy, including any nuclear energy liability policy; or (ii,) any person or organization is required to maintain financial protection pursuant'to legislation in any country; or (iii) the Insured under ''this Policy is, or had this Policy not been issued would ,be, entitled to indemnification from any government or agency thereof. (4) Loss, destruction, damage, expense or legal liability in respect of the nuclear risks not excluded by reason of paragraph (2), shall (subject to all other terms, conditions, limitations, warranties and exclusions of this Policy) be covered, provided that: Endorsement No. 4 II AAP 237(11/99) Page 1 of 2 12/03/2002 �, I This Endorsement effective January 1,2003 forms part of Policy Number AAP N00053983 Issued pto ,City of Renton ACE Property and Casualty Insurance Company NUCLEAR RISKS EXCLUSION CLAUSE (CONT'D.) G, 'I (i) in the case of any claim in respect of radioactive material in the course of carriage as cargo, III including storage for handling incidental thereto, such carriage shall in all respects have complied with the full International Civil Aviation Organization"Technical Instructions for the Safe Transport of Dangerous Goods by Air", unless the carriage shall have been subject to any more restrictive legislation, when it shall in all respects have complied with such legislation; (ii) this Policy shall only apply to an incident happening during the period of this Policy and where any claim by the Insured against us or by any claimant against the Insured arising out of such incident shall have been made within three years after the date thereof; (iii) in the case of any claim for the loss of or destruction of or damage to or loss of use of an aircraft caused by or contributed to by radioactive contamination, the, level of such contamination shall have exceeded the maximum permissible level set out in'the following dd; scale: ll� I ! Emitter Maximum permissible level of non-fixed radioactive surface contamination (IAEA Health and Safety Regulations) (Averaged over 300 cm2 ) 4'I Beta, gamma and low toxicity alpha emitters Not exceeding 4 Bequerels/cm2 (10-4 microcuries/cm 21 ) 3i All other emitters Not exceeding 0.4 Bequerels/cm2 (10-5 microcuries/cm 2 ) (iv) the cover afforded herebymaybe cancelled byus at anytime bygivingseven days' notice of Y ' cancellation. Authorized Representative II I I I Endorsement No. 4 AAP 237 (11/99) Page 2 of 2 12/03/2002 it This Eridor ement effective January 1,2003 forms part f Policy Number ,AAP N00053983 Issued to City of Renton ACE P operty and Casualty Insurance Company i EXCESS AUTOMOBILE LIABILITY 1 IMPOFTANT PROVISIONS WITH RESPECTTO EXCESS AUTOMOBILE LIABILITY INSURANCE PROVIDED BY EN1'DO'RSEMENT AAP 211, WHICH FORMS PART OF THIS POLICY. In consequence of 1 (a) the Insured being responsible for the handling and payment of claims within the Underlying Limits of Li bility (Ultimate Net'Loss) as shown in endorsement AAP 211, this being without the existence ofaformal policy of Insurance;and (b) tle noverage provided by endorsement AAP 211 being dependent upon the existence of written terms and¶onditions within a primary policy of insurance; it is understood and agreed that the excess Automobile Insurance provided by endorsement AAP 211 is limited to those payments that we would have made had the Insured purchased primary Automobile Insura ce issued under the Business Auto Coverage Form which is attached to and forms part of this policy. II I Authorized Representative Endorsement No. 5 AAP 238 (11/99) j 12/03/2002 i I 1 1 ' , COMMERCIAL AUTO CA00010797 I BUSINESS AUTO COVERAGE FORM ' Various pro isions in this policy�restrict coverage. SECTION I—COVERED AUTOS Read the erI tire policy carefully to determine rights, Item Two of the Declarations shows th;e 'autos" that duties and what is and is not covered. are covered "autos" for each ofyour coverages. The Throughout this policy the words "you" "your" following symbols "autos" ou andnumerical describe the refer to the Named Insured shown refer to the next to a coverage on the Declarations Is, entered in the Declare- that maym be covered "autos". The s b' tions. The words we , "us" and "our" signate the Company prlIoviding this insurance! only"autos"that are covered "autos". Other v ords and phrases that appear in quotation A. Description Of Covered Auto designation marks have special meaning. Refer to Section V — Symbols Definitiins. ii Symbol Description Of Covered Auto Designation Symbols 1 1 Any"Auto" y youY you',don't own 2Owned "Autos" Onl those"autos"you own (and for Liability Coverage any"trailers"yo Only while attached topower units own). This includes those"autos"you acquire ownership of after the policy begins. '1 3 Owned Private Only the private passenger"autos"you own. This includes those private passenger passenger "autos"you acquire ownership of after the policy begins. I "Autos"Only i 4 1 Owned"Autos" Only those"autos"you own that are not of the private passenger type (and for Li- Other Than Pri- ability Coverage any"trailers"you don't own while attached to power unite you l gate Passenger own).This includes those"autos" not of the private passenger type you acquire "Autos"Only ownership of after the policy begins. I i 5 Owned "Autos" Only those"autos"you own that are required to have No-Fault benefits in the state Subject To No- where they are licensed or principally garaged. This includes those"autos"you ac- Fault quire ownership of after the policy begins provided they are required to have No- Fault benefits in the state where they are licensed or principally garaged. 6 (Owned "Autos" Only those"autos"you own that because of the law in the state where they'are li- Subject To A censed or principally garaged are required to have and cannot reject Uninsured Compulsory Motorists Coverage.This includes those"autos"you acquire ownership of after the Uninsured Mo- policy begins provided they are subject to the same state uninsured motorists re- torists Law quirement. _ 7Specifically De- Only those"autos"described in Item Three of the Declarations for which!a premium scribed "Autos" charge is shown (and for Liability Coverage any"trailers"you don't own while at- tached to any power unit described in Item Three). 8 I Autos you lease, hire, rent,you or lease, hire, from t orc "employees",to does ,p "are a include enyOnly � any yourP Y partners (if you are a partnership),l members (if you are a limited liability company)or members of their households. , , 9 Nonowned Only those"autos"you do not own, lease, hire, rent or borrow that are,used in con- "Autos"Only nection with your business. This includes"autos"owned by your"employees", partners (if you are a partnership), members (if you are a limited liability company), or members of their households but only while used in your business or your per- sonal affairs. 1 1 I Co ri ht, Insurance Services Office, Inc., 1996 I Pag py CA00010797 g e 1 of 10 0 i B. Ow ed Autos You Acquire After The Policy We have the right and duty to defend any"insured" Beg ns against a "suit" asking for such damages or a II 6 "covered pollution cost or expense".11 However, we 1. I Symbols 1, 2, 3, 4, 5 or i are entered next to . have no duty to defend any "insured" against a II co era a in Item Two of the Declarations, "suit" seeking damages for "bodily injury" or "p p a g then you have coverage for "autos" that you ro - l erty damage" or a "covered pollution cost or ex- acquire of the type described for the remainder to which this insurance does not apply. We of the policy period. � pense" III I I may investigate and settle any claim or "suit" as 2. But, if Symbol 7 is entered)next to a coverage we consider appropriate. Our duty to defend or in Item Two of the Declarations, an "auto" you settle ends when the Liability Coverage Limit of In- III will be a covered "auto" for that cover- o acquire surance has been exhausted by payment of judg- Ige only if: ments or settlements. o. We already cover all "autos" that you own 1. Who Is An Insured for that coverage or it replaces an "auto" The following are"insureds": you previously owned that had that cover- age; and a. You for any covered "auto". b. Y lou tell us within 30 days after you acquire b. Anyone else while using with your permis- it that you want us to cover it for that cover- sion a covered "auto" you own, hire or bor- age. row except: I C. Ce ain Trailers, Mobile Equipment; And (1) The owner or anyone else from whom Te porary Substitute Autos you hire or borrow a covered "auto". Ill If Liability Coverage is provided by this Coverage This exception does not apply if the cov- Form, the following types of vehicles are also cov- ered "auto" is a "trailer" connected to a ered "autos"for Liability Coverage: covered "auto"you own. 1. "Trailers" with a load capacity of 2,000 pounds (2) Your "employee" if the covered "auto" is or lees designed primarily for travel on public owned by that "employee"'or a member rdade. of his or her household. 2. $1oble equipment" while being carried or (3) Someone using a covered "auto" while ' "auto". he or she is working in a business of towed by a covered 4ny selling, servicing, repairing, parking or 3. ')auto" you do not own while used with the storing "autos" unless that business is piermission of its owner as a temporary substi- yours. t�l to for a covered "auto" you own that is out of service because of its: (4) Anyone other than your "employees", I I partners (if you are a p'artnership), . Breakdown; members (if you are a limited liability b. Repair; company), or a lessee or borrower or any of their "employees", while moving . Servicing; property to or from a covered"auto". . "Loss"; or 5 Apartner (if you area partnership), or a II I O e. Destruction. member (if you are a limited liability IIISECTION II—LIABILITY COVERAGE company)for a covered "auto"owned by III him or her or a member of his or her A. Coverage household. We iI ill pay all sums an "insured" legally must pay c. Anyone liable for the conduct) of an "in- as damages because of bodily injury" or"property ex- dam to which this insurance applies, caused sured" described above but only to the ex- tent of that liability. by an "accident" and resulting from the ownership, Extensions a maintenance or use of a covered"auto". 2. Coverage We will also pay all sums an "insured" legally must a. Supplementary Payments pay as a "covered pollution cost or expense" to In addition to the Limit of Insurance, we will which this insurance applies, caused by an "acci- pay for the"insured": dent' arid resulting from the I ownership, mainte- nance or use of covered "autos". However, we will (1) All expenses we incur. only pay for the "covered pollution cost or ex- ) pense" if there is either "bodily injury" or "property I III damage" to which this insurance applies that is caused by the same"accident";. I Page 2 Of 10 Copyright, Insurance Services Office, Inc., 1996 CA 00 01 07 97 El I 1 I• T- I (2) Up to $2,000 for cost of bail bonds (in- 2. Contractual 1 cluding bonds for related traffic law vio- Liability assumed under any contract or agree- lations) required because of an "acci- ment. 1 'I dent" we cover. We!do not have to fur- nish these bonds. But this exclusion does not apply to liability for (3) The cost of bonds to release attach- damages: ments in any "suit" against the "insured" a. Assumed in a contract or agreement that is we defend, but only for bond amounts an "insured contract" provided the "bodily within our Limit of Insurance. injury" or "property damage" occurs subse- quent(4) All reasonable expenses incurred by the to the execution of the contract' or "insured" at our request, including actual agreement; or loss of earning up to $250 a day be- b. That the "insured" would have in the ab- cause of time off from work. sence of the contract or agreement. (5) All costs taxed against the "insured" in 3. Workers'Compensation any "suit" against the "insured" we de- Any obligation for which the "insured" or the I fend. "insured's"insurer may be held liable under any (6) All interest on the full amount of any workers' compensation, disability 1 benefits or judgment that accrues after entry of the unemployment compensation law or any similar judgment in any "suit" against the "in- law. I sured" we defend, but our duty to pay 4. Employee Indemnification And Employer's interest ends when we have paid, of- Liability , fered to pay or deposited in court the "Bodily injury"to: part of the judgment that is within our Limit of Insurance. ; a. An "employee"of the"insured"arising out of b. Out-Of-State Coverage Extensions and in the course of: I (1) Employment by the"insured"; or While a covered "auto" is away from the state where it is licensed we will: (2) Performing the duties related to the con- (1) Increase the Limit of Insurance for Li- duct of the"insured's"business; or ability Coverage to meet the limits speci- b. The spouse, child, parent, brother or sister fled by a compulsory or financial re- of that "employee" as a consequence of sponsibility law of the jurisdiction where Paragraph a. above. the covered "auto"'is being used. This This exclusion applies: 1 extension does not apply to the limit or (1) Whether the "insured" may be liable as limits specified by1 any law governing an employer or in any other capacity; motor carriers of passengers or prop- and erty. (2) To anyobligation to share damages with 9 9 (2) Provide the minimum amounts and or repay someone else who must pay types of other coverages, such as no- damages because of the injury. fault, required of out-of-state vehicles by the jurisdiction where the covered "auto" But this exclusion does not apply to "bodily in- is being used. jury" to domestic "employees" not entitled to workers' compensation benefits or to liability We will not pay anyone more than once for assumed by the "insured" under'an "insured IIIthe same elements of loss because of these contract". For the purposes of,the Coverage jxtensions. Form, a domestic "employee" is a person en- B. Exclusions gaged in household or domestic work per- This insurance does not apply to any of the fol- formed principally in connection with a resi- lo4ng: I dence premises. 1. 'ExpectedIntended Injury 5. Fellow Employee , l Or �j'Bodily injury11 or "property damage" expected "Bodily injury" to any fellow "employee" of the or intended from the standpoint of the "in- "insured" arising out of and in the course of the sured". fellow "employee's" employment or while per- , ; forming duties related to the conduct of your business. , II 1 1 CA O0'11101 07 97 Copyright, Insurance Services Office, Inc., 1996 Page 3 of 10 0 II 1, i I��are, Custody Or Control Work that may need service, 6. maintenance, 'Property damage"to or"covered pollution cost correction, repair or replacement, but which is otherwise complete, will be treated as 6r expense involving property owned or trans-� completed. 'Sorted by the "insured" or in the "insured's" care, custody or control. But this exclusion 11. Pollution does not apply to liability assumed under a "Bodily injury" or "property damage" arising out sidetl-ack agreement. 1 of the actual, alleged or threatened discharge, 7. Handling Of Property dispersal, seepage, migration, release or es- 'podily injury" or "property damage" resulting cape of"pollutants": from the handling of property: a. That are, or that are contained in any prop- III that is: j a. Before it is moved from the place where it is accepted by the"insured"for movement into (1) Being transported or towed by, handled, o.onto the covered "auto"; or or handled for movement into, onto or b. After it is moved from the covered "auto" to from, the covered "auto"; the place where it is finally delivered by the (2) Otherwise in the course of transit by or "insured". I on behalf of the"insured"; or 8. ovement Of Property By Mechanical (3) Being stored, disposed of,1 treated or 'J^IIBodily injury or property damage" resulting b. Before the "pollutants" or an covered"auto";rty IlDevice , processed in or upon the y property in rom the movement of property by a mechani- which the "pollutants" are contained are cal device (other than a hand truck) unless the moved from the place where they are ac- , device is attached to the covered "auto". cepted by the "insured" for movement into 9. Operations P or I or onto the covered "auto"; 'Bod ly injury" or "property damage arising out " P y property in f the operation of any 'e ui ment listed in which the "pollutants" are contained are c. After the "pollutants" or an. P q p th "auto" d th d from e covereto e Paragraphs 6.b. and 6.c. of the definition of moveIplace '^^mob'ile equipment". where they are finally delivered, disposed of II or abandoned by the"insured". 10. Completed Operations 1 ';Bodil injury" or "property dama e" arisingout Paragraph a. above does not apply to fuels, Y 9 lubricants, fluids, exhaust gases ,or other of yqur work after that work has been corn- similar "pollutants" that are needed for or pleted or abandoned. result from the normal electrical, hydraulic In this exclusion, your work means: or mechanical functioning of the covered II "auto"or its parts, if: ' l . Work or operations performed by you or on 1 your behalf; and (1) The "pollutants" escape, seep, migrate, or are discharged, dispersed or released b. Materials, parts or equipment furnished in directly from an "auto" part designed by connection with such work or operations. its manufacturer to hold, (store, receive Your work includes warranties or representa- or dispose of such "pollutants'; and ions made at any time with respect to the fit- (2) The"bodily injury", "property damage" or essl quality, durability or(performance of any "covered pollution cost or expense"does of the items included in Paragraphs a. or b. i I not arise out of the operation of any Ijlbove. equipment listed in Paragraphs'6.b. and your work will be deemed completed at the 6.c. of the definition of "mobile equip- earliest of the following times: ment". (1) When all of the work called for in your Paragraphs b. and c. above) of this exclu- contract has been completed. sion do not apply to "accidents" that occur 1 (2) When all of the work to be done at the away from premises owned by or rented to 1 site has been completed if your contract an "insured" with respect to "pollutants" not calls for work at more than one site. in or upon a covered"auto" if:I 1 (3) When that part of the work done at a job (1) The "pollutants" or any property in which site has been put to its intended use by the "pollutants" are contained are upset, any erson or organization other than overturned or damaged as a result of the another contractor or subcontractor maintenance or use of a covered "auto"; I working on the same project. and i I I Page 4 of 10 Copyright, Insurance Services Office, Inc., 1996 CA 00 01 07 97 0 i Ij 111 (2) The discharge, dispersal, seepage, mi- (5) Mischief or vandalism; or 11I gration, release or escape of the "pollut- (6) The sinking, burning, collision or derail- ants" is caused directly by such upset,damage.' ment of any conveyance transporting the overturn or d '' covered "auto". I" 12. War i, 1 c. Collision Coverage 1Bodily injury"or"property damage"due to war, Caused by: I 1 whether or not declared, or any act or condition incident to war. War includes civil war, insur- (1) The covered "auto's" collision with an- rection, rebellion or revolution. This exclusion other object; or 1 applies only to liability assumed under a con- (2) The covered "auto's"overturn. tract or agreement.II 1 2. Towing 13. Racing We will pay up to the limit shown in the Decla- Covered "autos"while used in any professional rations for towing and labor costs incurred each or organized racing or demolition contest or time a covered "auto" of the private passenger stunting activity, or while practicing for such type is disabled. However, the labor must be contest or activity. This insurance also does not performed at the place of disablement. apply while that covered "auto" is being pre- 3. Glass Breakage—Hitting A Bird Or Animal— pared for such a contest or activity. Falling Objects Or Missiles C. Limit Of Insurance If you carry Comprehensive Coverage for the Regardless of the number of covered "autos", "in- damaged covered "auto", we will pay for the sureds"J premiums paid, claims made or vehicles following under Comprehensive Coverage: involved in the "accident", the most we will pay for a. Glass breakage; the,totall11 of all damages and "covered pollution cost or expense"combined, resulting from any one "ac- b. "Loss" caused by hitting a bird or animal; cident" is the Limit of Insurance for Liability Cover- and age shown in the Declarations. c. "Loss"caused by falling objects,or missiles. All III injury", "property damage" and "covered However, you have the option of having glass pollution cost or expense" resulting from continu- breakage caused by a covered "auto's" colli- ou ', or repeated exposure ,to substantially the sion or overturn considered a "loss" under Col- same conditions will be considered as resulting lision Coverage. from one"accident". I 4. Coverage Extension 1 , No.one, will be entitled to receive duplicate pay- We will pay up to $15 per day to;a maximum of merits for the same elements of "loss" under this $450 for temporary transportation expense in- Coerage Form and any Medical Payments Coy- 1 curred by you because of the total theft of a erage Endorsement, Uninsured Motorists Cover- covered "auto" of the private passenger type. age Endorsement or Underinsured Motorists Coy- We will pay only for those covered "autos" for erage Endorsement attached to this Coverage 1 Part. which you carry either Comprehensive or Specified Causes of Loss Coverage. We will SECTION III—PHYSICAL DAMAGE COVERAGE pay for temporary transportation expenses in- A. Coverage curred during the period beginning 48 hours after the theft and ending, regardless of the 1. !'We Twill payfor "loss" to a covered "auto" or its policy's expiration, when the covered "auto" is egwpment under: returned to use or we pay for its"loss". a. Comprehensive Coverage11 B. Exclusions P From anycause except: 1. We will not pay for"loss"caused by or resulting P (1) The covered "auto's" collision with an- from any of the following. Such "loss" is ex- II other object; or 1 cluded regardless of any other cause or event (2) The covered "auto's"overturn. that contributes concurrently or, in, any se- quence to the"loss". , 1 i b. Specified Causes Of Loss Coverage a. Nuclear Hazard Caused by: (1) The explosion of any weapon employing il (1) Fire,lightning or explosion; ' atomic fission or fusion; or (2) Theft; 1 (2) Nuclear reaction or radiation, or radioac- 1u (3) Windstorm, hail or earthquake; tive contamination, howeve l caused. (4) Flood; CA 00 01 07 97 Copyright, Insurance Services Office, Inc., 1996 ' Page 5 of 10 0 I I . - �3. War Or Military Action Exclusions 4.c. and 4.d.do not apply to: I' (1) War, including undeclared or civil war; a. Equipment designed solely for the repro- (2) Warlike action by ;a military force, in- duction of sound and accessories used with cluding action in hindering or defending such equipment, provided such equipment against an actual or expected attack, by is permanently installed in' the covered any government, sovereign or other "auto" at the time of the "loss" or such authority using military personnel or equipment is removable from a housing unit other agents; or which is permanently installed,in the cov- ered "auto" at the time of the "loss", and (3) Insurrection, rebellion, revolution, such equipment is designed to be solely usurped power or action taken by gov- operated by use of the power from the ernmental authority, in hindering or de- "auto's" electrical system, in Or upon the fending against any of these. covered "auto"; or 2. We will not pay for"loss" to any covered "auto" b. Any other electronic equipment that is: while used in any professional or organized (1) Necessary for the normal operation of acing or demolition contest or stunting activity, „ or while practicing for such contest or activity. the covered auto or the monitoring of We 'will also not pay for "loss" to any covered the covered "auto's" operating system; "auto" while that covered"'auto" is being pre- or pared for such a contest or activity. (2) An integral part of the same unit housing 3. We will not pay for"loss"caused by or resulting any sound reproducing equipment de- from any of the following unless caused by scribed in a. above and permanently in- �pthei-"loss"that is covered by this insurance: stalled in the opening of the dash or I console of the covered "auto" normally a. Wear and tear, freezing, mechanical or used by the manufacturer for installation electrical breakdown. of a radio. p. Blowouts, punctures or other road damage C. Limit Of Insurance to tires. pay The most we willpayfor "loss" „ . s any one "acci-. 1 in 4. iNe will not a for "loss"Ito any of the follow- dent" is the lesser of: ing: 1. The actual cash value of the damaged or stolen a. Tapes, records, discs or other similar audio, property as of the time of the"loss"; or visual or data electronic devices designed for use with audio, visual or data electronic 2. The cost of repairing or replacing the damaged equipment. or stolen property with other property of like II 4ny kind and quality. b. device designed' or used to detect D. Deductible speed measuring equipment such as radar or laser detectors and any jamming appa- For each covered "auto", our obligation to pay for, ratus intended to elude or disrupt speed repair, return or replace damaged or IstOlen prop- measurement equipment. erty will be reduced by the applicable deductible c. Any electronic equipment, without regard to shown in the Declarations. Any Comprehensive v�hether this equipment is permanently in- Coverage deductible shown in the Declarations I stalled, that receives or transmits audio, does not apply to"loss"caused by fire or lightning. visual or data signalsl, and that is not de- signed solely for the reproduction of sound. id. Any accessories used with the electronic equipment described in Paragraph c. above. II III 1 11 'I Page 6 of 10 Copyright, Insurance Services Office, Inc., 1996 CA 00 01 07 97 0 I 1 _ SECTI 0 N IV—BUSINESS AUTO CONDITIONS (5) Submit to examination, at our expense, The following conditions apply in addition to the Corn- by physicians of our choice,l as often as mon Policy Conditions: we reasonably require. A. Loss Conditions c. If there is "loss" to a covered "auto" or its 1 equipment you must also do the following: 1. Appraisal For Physical Damage Loss (1) Promptly notify the police if the covered if you and we disagree on the amount of"loss", "auto"or any of its equipment is stolen. either may demand an appraisal of the "loss". In this event, each party will select a competent (2) Take all reasonable steps to protect the appraiser. The two appraisers will select a covered "auto" from further damage. competent and impartial umpire. The apprais- Also keep a record of your expenses for �u w m consideration in the settleent of the ers will state separately the actual cash value claim. and amount of"loss". If they fail to agree, they 1 will submit their differences to the umpire. A (3) Permit us to inspect the covered "auto" decision agreed to by any two will be binding. and records proving the "loss" before its EacI party will: repair or disposition. la. Pay its chosen appraiser; and (4) Agree to examinations under oath at our b. Sear the other expenses of the appraisal request and give us a signed statement I and umpire equally. of your answers. If.we submit to an appraisal, we will still retain 3. Legal Action Against Us our right to deny the claim. No one may bring a legal action against us un- 2 Ilputies In The Event Of Accident, Claim,Suit der this Coverage Form until: Or Loss a. There has been full compliance with all the We have no duty to provide coverage under terms of this Coverage Form; and this policy unless there has been full compli- b. Under Liability Coverage, we agree in writ- ance with the following duties: ing that the "insured" has an obligation to a. In the event of "accident", claim, "suit" or pay or until the amount of that obligation has finally been determined by judgment "loss", you must give us or our authorized after trial. No one has the right under this representative prompt notice of the acci- dent"or"loss". Include: policy to bring us into an action to determine the"insured's"liability. (1) How, when and where the "accident" or "loss"occurred; 4. Loss Payment—Physical Damage (2). The"insured's" name and address; and Coverages i At our option we may: (3) To the extent possible, the names and a. Pay for, repair or replace damaged or stolen addresses of any injured persons and witnesses. property; b. Additionally, you and any other involved b. Return the stolen property, at our expense. "insured"must: We will pay for any damage;that results to • (1) Assume no obligation, make no payment the"auto"from the theft; or or incur no expense without our consent, c. Take all or any part of the damaged or sto- except at the"insured's"own cost. len property at an agreed, or appraised value. (2) Immediately send us copies of any re-quest, demand, order, notice, summons 5. Transfer Of Rights Of Recovery Against or legal paper received concerning the Others To Us i j claim or"suit". If any person or organization to or for whom we (3) Cooperate with us in the investigation or make payment under this Coverage Form has settlement of the claim or defense rights to recover damages from'another, those Ij rights are transferred to us. That person or or- against the"suit". ganization must do everything necessary to se- , (4) Authorize us to obtain medical records cure our rights and must do nothing after"acci- or other pertinent information. dent"or"loss"to impair them. I CA 001'01 07 97 Copyright, Insurance Services Office, Inc., 1996 Page 7 of 10 ❑ a d. When this Coverage Form and any General Conditions 9 other 1. Bankruptcy Coverage Form or policy covers on the p 1 same basis, either excess or primary, we Bankruptcy or insolvency of the"insured" or the will pay only our share. Ou,r share is the Insured's" estate will not relieve us of any obli- proportion that the Limit of Insurance of our gations under this Coverage Form. Coverage Form bears to the total of the lim- 2. Concealment, Misrepresentation Or Fraud its of all the Coverage Forms and policies 'This) Coverage Form is void in any case of covering on the same basis. fraud by you at any time as it relates to this 6. Premium Audit 1.Coverage Form. It is also void if you or any a. The estimated premium for this ,Coverage ;,;other "insured", at any time, intentionally con- Form is based on the exposures you told us ;ceal or misrepresent a material fact concerning: you would have when this policy began. We a. This Coverage Form; will compute the final premium due when we b. The covered "auto"; determine your actual exposures. The esti- mated total premium will be credited against c. Your interest in the covered "auto'; or the final premium due and the first Named Id. A claim under this Coverage Form. Insured will be billed for the balance, if any. 3. Liberalization If the estimated total premium;exceeds the final premium due, the first Named Insured If we revise this Coverage Form to provide will get a refund. moree coverage without' additional premium b. If this policy is issued for more than one charge, your policy will automatically provide year, the premium for this Coverage Form the additional coverage as of the day the revi- sion is effective in your state. will be computed annually based on our rates or premiums in effect at the beginning 4. ;No Benefit To Bailee — Physical Damage of each year of the policy. Coverages 7. Policy Period, Coverage Territory 'We will not recognize any assignment or grant "acci- any this Coverage Form, we ,cover coverage for the benefit of any person or dents"and "losses"occurring: organization holding, storing or transporting property for a fee regardless of any other provi- a. During the policy period shown in the Decla- sior of this Coverage Form. rations; and 5. Other Insurance b. Within the coverage territory. a. For any covered "auto" you own, this Coy- The coverage territory is: erage Form provides primary insurance. For a. The United States of America; any covered "auto" you don't own, the in- b. The territories and possessions of the surance provided by this Coverage Form is United States of America; excess over any other collectible insurance. However, while a covered "auto" which is a c. Puerto Rico; and j'trailer" is connected to another vehicle, the d. Canada. Liability Coverage this Coverage Form pro- 1 vides for the"trailer"is: We also cover "loss" to, or "accidents" involv- ing, a covered "auto" while being transported ii (1) Excess while it is connected to a motor between any of these places.. 1 vehicle you do not own. 8. Two Or More Coverage Forms Or Policies 1 (2) Primary while it is connected to a cov- Issued By Us 1 1 ered "auto"you own. If this Coverage Form and any;other Coverage ;b. For Hired Auto Physical Damage Coverage, Form or policy issued to you by us or any corn- ' covered "auto" you lease, hire, rent or pany affiliated with us apply to the same ,acci- borrow is deemed tol be a covered "auto" dent", the aggregate maximum Limit of Insur- you own. However, any "auto" that is ance under all the Coverage Forms or policies leased, hired, rented, or borrowed with a shall not exceed the highest applicable Limit of driver is not a covered"auto". Insurance under any one Coverage Form or lc. Regardless of the provisions of Paragraph policy. This condition does not apply to any A. above, this Coverage Form's Liability Coverage Form or policy issued by us or an af- (Coverage is primary for any liability as- filiated company specifically to apply as excess sumed under an "insured contract". insurance over this Coverage Form. 1 1 Page 8 of 10 Copyright, Insurance Services Office, Inc., 1996 CA 00 01 07 97 0 III SECTI f N V—DEFINITIONS ! (2) The"bodilyinjury", "property dama e" or J rY 9 A. "Accident" includes continuous or repeated expo- "covered pollution cost or expense"does sure to !the same conditions resulting in "bodily in- equipmentnot arise listed iut of n Pare agraphs eration 6.of any jury" or"property damage". 1 6.c. of the definition of ;'mobile equip- B. "A�to" means a land motor vehicle, "trailer" or ment". semitrailer designed for travel on public roads but Paragraphs b. and c. above do!not apply to dos not include"mobile equipment". � II . laccidents that occur away 'from;premises "Bodily injury" mens bodily injury, sicdeath is- P ap red" with re- C. Bob y sickness or is- - owned byor rented to an "insured" ease sustained bya person including sect to "pollutants" not in orupon a cov- sul ing from any of these. ered "auto" if: Il D. "C 11vered pollution cost or expense" means any (1) The "pollutants" or any property in which cost or expense arising out of: the "pollutants" are contained are upset, 1. Any request, demand or order; or overturned r damaged maintena ceor se of result covered "auto"; 2. �, ny claim or"suit" by or on behalf of a govern- , ental authority demanding and (2) The discharge, dispersal, seepage, mi- gration, release or escape of the "pollut- ants"tha the "insured" or others test for, monitor, clean up,;remove, contain, treat, detoxify or neutralize, or is caused directly by I such upset, in any wary respond to, or assess the effects of overturn or damage. "Couered s pollution cost or expense" does not in- E. "Employee" includes a "leased worker". "Em- II I elud0 , ployee"does not include a"temporary worker". e any cost or expense arising out of the actual, alleged or threatened discharge, dispersal, seep- F. "Insured" means any person or organization quali- age, migration, release or escape of"pollutants": fying as an insured in the Who Is An Insured provi- a. That are, or that are contained in any prop- sion of the applicable coverage. Except with re- spect to the Limit of Insurance, the coverage af- erty that is: I forded applies separately to each insured who is (1) Being transported or towed by, handled, seeking coverage or against whom a claim or"suit" or handled for movement into, onto or is brought. from the covered "auto"; G. "Insured contract"means: (2) Otherwise in the course of transit by or 1. A lease of premises; on behalf of the"ins;ured'; (3) Being stored, disposed of, treated or 2. A sidetrack agreement; processed in or upon the covered "auto"; 3. Any easement or license agreement, except in or connection with construction or'demolition op- erations on or within 50 feet of a railroad; .. Before the pollutants" or any property in which the "pollutants are contained are 4. An obligation, as required by ordinance, to in- moved from the place' where they are ac- demnify a municipality, except in connection cepted by the "insured" for movement into with work for a municipality; or onto the covered "auto"; or 5. That part of any other contract) or agreement c. After the "pollutants" !or any property in pertaining to your business (including an in- which the "pollutants", are contained are demnification of a municipality I in connection moved from the covered "auto" to the place with work performed for a municipality) under where they are finally delivered, disposed of which you assume the tort liability of another to or abandoned bythe"insured". pay for"bodily injury" or"property damage"to a ! third party or organization. Tort liability means a Faragraph a. above do'es not apply to fuels, liability that would be imposed bylaw in the ab- lubricants, fluids, exhaust gases or other is Y P sence of any contract or agreement; rimilar "pollutants" that are needed for or sult from the normal electrical, hydraulic 6. That part of any contract or agreement entered into, aspart ofyour business, pertainingto the or mechanical functioning of the covered „ "auto"or its parts, if: ! rental or lease, by you or any of your employ- ; ees", of any "auto". However, such contract or (1) The "pollutants" escape, seep, migrate, agreement shall not be considered an "insured or are discharged, dispersed or releasedI directly from an "auto" part designed by contract" to the extent that it obligates you or hold, store, receive anyour "employees" to payfor,,"property its manufacturer toll damage" to an "auto" rented leasedor ' by you or dispose of such "pollutants"; and or any of your"employees". 1 1 CA 00 01 07 97 Copyright, Insurance Services Office, Inc., 1996 Page 9 of 10 0 1 An "insured contract" does not include that part 6. Vehicles not described in Paragraphs 1., 2., 3. of any contract or agreement: or 4. above maintained primarily for purposes a. That indemnifies any person or organization other than the transportation of persons or ' "property damage" cargfollowinev r, elff propelled Vehicles with for "bodily injury" orH hod arising out of construction or demolition,op- th g typesp ly orations, within 50 feet of any railroad prop- equipment are not "mobile equipment" but will erty and affecting any railroad bridge or be considered autos . trestle, tracks, roadbeds, tunnel, underpass a. Equipment designed primarily for: 1 or crossing; or (1) Snow removal; b. That pertains to the loan, lease or rental of (2) Road maintenance, but not construction an"auto"to you or any of your"employees", or resurfacing; or if the "auto" is loaned, leased or rented with a driver; or (3) Street cleaning; i 'c. That holds a person or organization en- b. Cherry pickers and similar devices mounted gaged in the business of transporting prop- on automobile or truck chassis and used to arty by"auto" for hire harmless for your use raise or lower workers; and of a covered "auto" over a route or territory c. Air compressors, pumps and, generators, that person or organization is authorized to including spraying, welding,I building clean- serveII 11 by public authority. ing,servgeophysical en phyis lexploration, lighting or well H. Leased worker" means a person leased to you by gequipment. a Iaborl leasing firm under an agreement between K. "Pollutants" means any solid, liquid,' gaseous or you and the labor leasing firm, to perform duties thermal irritant or contaminant, including smoke, related the conduct of your business. "Leased vapor, soot, fumes, acids, alkalis, chemicals and worker��does not include a"temporary worker". waste. Waste includes materials to ibe recycled, 1'I. Loss" reconditioned or reclaimed. means direct and accidental loss or dam- age. ; L. "Property damage" means damage to or loss of J. "Mobil equipment" means 'any of the following use of tangible property. 1 types of land vehicles, including any attached ma- M. "Suit"means a civil proceeding in which:' chinery or equipment: 1. Damages because of "bodily injury" or "prop- 1. ;Bulldozers, farm machinery, forklifts and other erty damage"; or I I vehicles designed for use principally off public 2. A"covered pollution cost or expense", ' roads; 1 to which this insurance applies, are alleged. 2. ,Vehicles maintained for use solely on or next to ;premises you own or rent; "Suit" includes: 3. Vehicles that travel on crawler treads; a. An arbitration proceeding in which such damages or "covered pollution costs or ex- 4. ,Vehicles, whether self-propelled or not, main- penses" are claimed and to which the "in- ;'tained primarily to provide mobility to perma- sured" must submit or does submit with our nently mounted: consent; or l a. Power cranes, shovels, loaders, diggers or b. Any other alternative dispute resolution pro- drills; or ceeding in which such damages or"covered I. b. Road construction or resurfacing equipment pollution costs or expenses" are claimed such as graders, scrapers or rollers. and to which the insured submits with our 5. Vehicles not described in,Paragraphs 1., 2., 3., consent. or 4. above that are not self-propelled and are N. "Temporary worker" means a person who is fur- : maintained primarily to provide mobility to per- nished to you for a finite time period to support or manently attached equipment of the following supplement your workforce in special work situa- types: tions such as "employee" absences, temporary a. Air compressors, pumps and generators, skill shortages and seasonal workloads. including spraying, welding, building clean- O. "Trailer"includes semitrailer. ' ing, geophysical exploration, lighting and well servicing equipment; or b. Cherry pickers and similar devices used to raise or lower workers. I, Page110 of 10 Copyright, Insurance Services Office, Inc., 1996 CA 00 01 07 97 ❑ This Endorsement effective January 1,2003 forms part of Policy Number AAP N00053983 Issued to I City of Renton ACE Property and Casualty Insurance Company DATE RECOGNITION EXCLUSION CLAUSE This policy does not cover any claim, damage, injury, loss, cost, expense or liability (whether in contract, tort, negligience, product liability, misrepresentation, fraud or otherwise) of any nature whatsoever arising from obi occasioned by or in consequence of(whether directly or indirectly and whether wholly or partly): (a) tie failure or inability of any computer hardware, software, integrated circuit, chip or ,information technology equipment or system (whether in the possession of the Insured or of any third party) accurately or completely to process, exchange or transfer year, date or time data or information in connection with: -,the change of year from 1999 to 2000; and/or - the change of date from 21 August 1999 to 22 August 1999; and/or I any other change of year, date or time; whether on or before or after such change of year, date or time; (b) any implemented or attempted change or modification of any computer hardware, software, integrated circuit, chip or information technology equipment or system (whether in the possession Of the Insured or of any third party) in anticipation of or in response to any such change of year, date or time, or any advice given or services performed in connection with any such change or modification; (c) any non-use or unavailability for use of any property or equipment of any kind whatsoever resulting from'any act, failure to act or decision of the Insured or of any third party related to any such change 11, of year, date or time; iI and any provision in this policy concerning any duty of Insurers to investigate or defend claims shall not apply o any claims so excluded. i ,II 1 II 4449 Authorized Representative III i Endorsement No. 6 AAP 256 ( 1/99) 12iO3i2002 This Endorsement effective January 1,2003 forms part of Policy Number AAP N00053983 Issued to City of Renton ACE Property and Casualty Insurance Company PREMIUM AUDIT ENDORSEMENT It is agreed that the advance premium shown under the Declarations is adjustable as follows: Products-Completed Operations: Gross Receipt. Rate Developed Classification policy period per$1,000 Premium New Aircraft Sales If Any Included Included Used Aircraft Sales If Any Included Included Repairs & Service, includidg parts installed If Any Included Included Aviation gas and oil If Any Included Included Parts not installed If Any Included Included Earnetl Premium Included Less Advance Premium Included Additional / (Return Premium) due Included i I Authorized Representative Endorsement No. 7 AAP 257 (11/99) 12/03/2002 6 ' This Endorsement effective January 1, 2003 forms part of Policy Number AAP N00053983 Issued too City of Renton ACE Property and Casualty Insurance Company '; WASHING,TON CHANGES - CANCELLATION AND NONRENEWAL This endorsement modifies insurance provided under AIRPORT OWNERS AND OPERATORS GENERAL LIABILITY POLICY. , CANCELLATION 1. Thefirst Named Insured shown in the Declarations may cancel this policy by mailing or delivering to us advance written notice of cancellation. 2. We may cancel this policy by mailing or delivering to the first Named Insured and the first Named Insured's agent or broker written notice of cancellation, including the actual reason for the cancellation, to the last mailing address kni'own to us, at least: a. 10 days before the effective date of cancellation if we cancel for nonpayment of premium; or b. 45 days before the effective date of cancellation if we cancel for any other reason. 3. We will also mail or deliver to any mortgage holder, pledgee or other person shown in this policy to have an interest in any loss which may occur under this policy, at their last mailing address known to us;written notice of cancellation, prior to the effective date of cancellation.This notice will be the same as that mailed or delivered to:the first Named Insured. 4. Notice of cancellation will state the effective date of cancellation. The policy period will end on that date. 5. a. 1 If this policy is cancelled,we will send the first Named Insured any premium refund due.Ifwe cancel,the refund wiill be pro rata. b.�1 If the first named insured cancels,the refund will be at least 90% of the pro rata refund. c.i If (1i) You are an individual; and ; (2) The first Named Insured cancels, il the refund will be not less than 90% of any unearned portion not exceeding$100, plus 95% of any ! unearned portion over$100 but not exceeding$500, and not less than 97% of any unearned.portion in i excess of$500. d.1' Tie cancellation will be'effective even if we have not made or offered a refund. 6. If l otice is mailed, proof of mailing will be sufficient proof of notice. 1 NONRENEWAL ' 1. We may elect not to renew this policy by mailing or delivering written notice of nonrenewal, stating the reasons for nonrenewal, to the first Named Insured and the first Named Insured's agent or broker, at their last mailing addresses known to us. Wewill also mail to any mortgage holder, pledgee or other person shown in this policy I 1 to;have an interest in any loss which may occur under this policy, at their last mailing address known to us, written notice of nonrenewal:We will mail or deliver these notices at least 45 days before the: ' a.i; *piration of the policy;for b. Anniversary date of this,policy if this policy has been written for a term of more than one year. Otherwise,we will renew this policy unless: a.'' The first Named Insured fails to pay the renewal premium after we have expressed our willingness to renew, including a statement of the renewal premium, to the first Named Insured and the first Named i. Insured's insurance agent or broker, at least 20 days before the expiration date; or b.,l, Other coverage acceptable to the insured has been procured prior to the expiration date of the policy. Endorsement No. 8 Includes copyrighted material of Insurance Services Office,Inc.with its permission Page 1 of 1 Copyright,Insurance Services Office,Inc.1998 AAP WA(11/99) 1 I ! ' This Endorsement effective January 1, 2003 forms part of Policy Number AAP N00053983 Issued to City of Renton ACE Property and Casualty Insurance Company ,„ WASHINGTON CHANGES This en,idorsement modifies insurance provided under AIRPORT OWNERS AND OPERATORS GENERAL LIABILITY POLICY. A. Exclusion e. of coverage A-,Bodily Injury and Property Damage Liability (Section I - Coverages)applies only aplplie only to"bodily injury"to any"employee"of the insured whose employment is not subject to the Industrial Insurance Act of Washington (Washington Revised Code Title 51). ' With respectto"bodily injury"to"employees"of the insured whose employment is subject to the Industrial insurance Act of Washington, Exclusion e. is replaced with the following: This insurance does not apply to: 1.i,; Bodily injury"to an "employee"of the insured arising out of and in the course of: a. Employment by the insured; or b.l Performing duties related to the conduct of the insured's business; or 2. Any obligation to share damages with or repay someone else who must pay damages because of the injury. Tye exclusion does not apply to liability assumed by the insured under an "insured contract". B. Paragraph 2.b.(1)of Section III -Who Is An Insured applies only to"employees"of the insured whose employment is not subject to the Industrial Insurance Act of Washington (Washington Revised Code Title 51). With respect to "employees"of the insured whose employment is subject to the Industrial Insurance Act of Washington, Pc ragraphs 2.a. and 2.b•of Section III -Who Is An Insured are replaced with the following: 2. , Each of the following is also an insured: a! Your employees, other than your exective officers, but only for acts within the scope of their employment by you with respect to your"airport operations". b. If you are designated in the Declarations as a public corporation,employees of your boards,commissions or agencies,other than executive officers,but only for acts within the scope of their employment by those boards, commissions or agencies with respect to your"airport operations". ; However, no employee of yours or your boards, commissions or agencies is an insured for: (1) "Bodily injury"or"personal injury"to you or to a co-employee while in the course of his or her employment, or for any obligation to share damages with or repay someone else who must pay damages because of the injury; or (2) "Bodily Injury"or"personal injury"arising out of his or her providing or failing to provide professional health care services; or (3) "Property damage"to property owned or occupied by or rented or loaned to that employee, any Ills of your other employees, or any of your partners or members (if you are a partnership or joint venture). j II I i I ' Endorsement No. 9 Includes copyrighted material of Insurance Services Office,Inc.with its permission • Copyright,Insurance Services Office,Inc.1998 9001-WA(11/99) ! I Page 1 of 1 bto - ,vv.,c k 1 0• WA cities Insurance Authority 6 � P.O. Box 88030 Human h esources& . N��� �. Risk Management - �' 981 25th H 12006�� Tukwila, WA 98138 ANNivENSAfl'i �` August 1, 2006 eft O� ��1 Phone: 206 575 6046 yCEA Fax: 206-575-7426 Michael Webby City of Renton 1055 South Grady Way Renton, WA 98055 RE: Police Professional Liability Policy Aspen Specialty Insurance Effective Date: June 1, 2006 to June 1, 2007 Dear Mike: Enclosed is the policy referenced above. A summary of insurance is also enclosed for your reference. You should have already received the binder and invoice for the policy. Please contact Eric Larson or me if you have questions or require additional information. Thank you for the opportunity to be of continued service. Sincerely, j.71 'a Merril Dunhan4414(-h../' Y Administrative Assistant enc. 1 WA " cities Insurance Authority P.O. Box 88030 Tukwila,WA 98138 7/21/2006 Phone:206-575-6046 City of Renton 1055 South Grady Way Fax:206 575 7426 Renton,WA 98055 INV#: 100255 Invoice Liability 31,467 Total: $31,467 *k /to Renewal premium for Professional Liability Policy on City Jail. Term: June 1, 2006 to June 1,2007. armlet , 11 da'iver, UU INSURANCE SERVICES 1; 1 INTEGRATED INSURANCE&FINANCIAL SERVICES Washington Cities Insurance Authority (WCIA) 1, Police Professional Liability il,it Summary of Coverage NAMED INSURED: City of Renton INSURER: Aspen Specialty Insurance Company A.M.BEST RATING: A-(Excellent),Financial Size Category—VIII($100 million to$250 million) as of June 1,2006 STANDARD&POOR'S: Not rated Il W'ASHINGTON STATUS: Not Admitted POLICY NUMBER: LE000030 I. , POLICY PERIOD: June 1,2006 to June 1, 2007 II ' TYPE OF COVERAGE: Police Professional Liability COVERAGE/LIMITS: Annual Aggregate Limit ' $' ' 1,000,000 . Each Person Limit $ 1,000,000 hEach Occurrence Limit $ 1,000,000 EXCLUSIONS(Major but Asbestos—Hazardous Properties Exclusion not limited to): Consent to Settle Endorsement 'i Punitive&Exemplary Damages Endorsement I Fungi,Bacteria, and Viruses Exclusion 11 Terrorist Exclusion I Service of Suit 1 i , LOSS/CLAIM REPORTING: Report all claims to: l Summit Risk Services,Inc. 424 South York Road Hatboro,PA 19040 II I Ph: 800-851-9403 1 1 Fax: 215-773-7725 II DAIS,Attention Diana Walizada, Claims Manager Fax: 415-402-0773 D,, DUCTIBLE: $ ! 10,000 i i 1 Driver Alliant Insurance Services Inc. an Alliant Resources Group company 1301 Dove Street,Suite 200,Newport Beach CA 92660 • 949-756-0271 Lic#0C36861 • www.driveralliant.com j;'rr3uo6 1 thrive ' t INSURANCE SERVICES INTEGRATED INSURANCE&FINANCIAL SERVICES lit ANNUAL PREMIUM: $ 29,469.00 TAXES &FEES, STAMPING FEES: $ 1,997.64 TOTAL: $ 31,466.64 BROKER: DRIVER ALLIANT INSURANCE SERVICES,INC. 6 Rick Steddom,Vice President Patty Kopec,Unit Manager This summary of insurance is provided as a matter of convenience and information only. All information included in this summary, including but not limited to personal and real property values, locations, operations, products data, automobile schedules,financial data and loss eperience,is based on facts and representations supplied to Driver Alliant Insurance Services, Inc!'by you. This summary does not reflect any independent study or investigation by Driver Alliant Insurance Services,Inc.,or its agents and employees. 11 THIS SUMMARY IS NOT CONFIRMATION OF INSURANCE AND DOES NOT ADD TO,EXTEND,AMEND,CHANGE OR ALTER ANY 11 COVERAGE IN ANY ACTUAL POLICY OF INSURANCE YOU MAY HAVE. ALL POLICY TERMS,CONDITIONS,EXCLUSIONS AND LIMITATIONS APPLY. FOR SPECIFIC INFORMATION REGARDING YOUR INSURANCE COVERAGE, PLEASE REFER TO THE , POLICY ITSELF. DRIVER ALLIANT INSURANCE SERVICES,INC.WILL NOT BE LIABLE FOR ANY CLAIMS ARISING FROM OR RELATED TO INFORMATION INCLUDED IN OR OMITTED FROM THIS SUMMARY OF INSURANCE. j ANAILYZING INSURERS' OVER-ALL PERFORMANCE AND FINANCIAL STRENGTH IS A TASK THAT REQUIRES''SPECIALIZED SKILLS AND IN-DEPTH TECHNICAL UNDERSTANDING OF ALL ASPECTS OF INSURANCE COMPANY FINANCES AND OPERATIONS. Insurance brokerages such as Driver Alliant Insurance Services,Inc. typically rely upon rating agencies for this type of market analysis) Both A.M. Best and Standard and Poor have been industry leaders in this area for many decades, utilizing a combination of quantitative and qualitative analysis of the information available in formulating their ratings. I', A. 1. Best has an extensive database of nearly 6,000 Life/Health,Property Casualty and International companies.You can visit them at www.ambest.com II, additional information regarding insurer financial strength ratings visit Standard and Poor's website at www.standardandp oors.com Commissions are customarily paid by the insurance carriers to their agents and to brokers as a percentage of premiums. In addition'to the commissions that Driver Alliant receives,its related entity,Alliant Specialty Insurance Services,Inc.("ASIS") may receive compensation from Driver Alliant and/or the carrier for providing underwriting services. The financial impact of the compensation received by ASIS is a cost included in the premium. Additionally,the related entities of Driver Signature Services and/or Strategic HR may receive compensation from Driver Alliant and/or the carrier for providing designated,value-added services. Services contracted for by the client directly will be invoiced accordingly. Otherwise,services will be provided at the expense'of Driver Alliant and/or the carrier.Further information is available upon written request directed to: Driver Alliant Insurance Services,Attention:Chief Operating Officer, 1620 Fifth Avenue,San Diego,CA 92101. Il 1 Driver Alliant Insurance Services Inc. an Alliant Resources Group company 1301 Dove Street,Suite 200,Newport Beach CA 92660 • 949-756-0271 d'1 I Lic#0C36861 • www.driveralliant.com 2 17/3 uoe I ASPEN ' ASPEN SPECIALTY POLICE'PROFESSIONAL LIABILITY DECLARATIONS Policy#LE000030-02 I Previous Policy# LE000030 III ij 1. NAMEDjINSiURED: City of Renton MAILING ADDRESS: 1055 South Grady Way Ii 1 Renton, WA 98055 II 2. POLICY PERIOD: From 6/1/2006 to 6/1/2007 Ii at 12:01 A.M. Standard Time at your mailing address shown above. IN RETURl'1 FOR THE PAYMENT OF THE PREMIUM,AND SUBJECT TO ALL THE TERMS OF THIS , POLICY,WE AGREE WITH YOU TO PROVIDE THE INSURANCE AS STATED IN THIS POLICY. 3. LIMITS IOF INSURANCE: ANNUAL AGGREGATE LIMIT: $1,000,000.00 ' EACH OCCURRENCE LIMIT: $1,000,000.00 EACH PERSON LIMIT: $1,000,000.00 4. DEDUgjTIBLE AMOUNT: $10,000.00 5. PREMIUM: $29,469.00 TRIA P ;lemi m (if applicable): $ 0.00 Total Annual Premium: ' $29,469.00 0 `LOCATI`ON OF ALL PREMISES YOU OWN, RENT OR OCCUPY: 1. , 2. j! \ 7. ENDORSEMENTS FORMING A PART OF THIS COVERAGE PART ON ITS EFFECTIVE DATE: ASPPL-LE001(7/1/2005), ASPPL-LEDECOCC(7/1/2005), ASPPL-GEN01(1/1/2005), ASPPL-GEN03(1/1/2005), ASPPLT GEN05(1/1/2005), ASPPL-LE003(1/1/2005), ASPPL-LE005(1/1/2005), ASPPL�ILE006(1/1/2005) 1 l THESE POLICY DECLARATIONS TOGETHER WITH THE COMMON POLICY CONDITIONS, COVERAGE FORM(S)AND ENDORSEMENTS, IF ANY, COMPLETE THE ABOVE NUMBERED POLICY. THIS POLICY IS MADE AND ACCEPTED SUBJECT TO THE PROVISIONS AND STIPULATIONS WHICH ARE MADE A PART OF POLICY,TOGETHER WITH SUCH OTHER PROVISIONS, STIPULATIONS AND AGREEMENTS AS MAY BE ADDED. 1 l j .0e.+7.7 ',. "" drGiveroalliant I I ' DRIVER ALLIA INT INSURANCE SERVICES Authorized Representative 1301 DOVE STREET,SUITE 200 NEW�POR I BEACH,CA 92660 , LICENSE#0C36861 Issue Date: 05!/25/06 93001-Police Prof.Basic-w/holding cell and jail ASPPL-LE-DEC (OCC) (07/05) I j 1 1 I i ' I ' I i I� I Endorsement # 1 iI li I POLICE OFFICER PROFESSIONAL LIABILITY COVERAGE THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. General Change Endorsement I , This endorsement,effective 6/1/06 forms a part of Policy No.LE000030-02,issued to the Renton City by Aspen Specialty Insurance Company I i This endorsement modifies insurance provided under the following: POLICE PROFESSIONAL LIABILITY COVERAGE FORM In consideration of the premium charged it is hereby understood and agreed that coverage is afforded but only with respects to the jail operations) All other terms and conditions of the Policy remain unchanged. I � I it li I I II I I i I I i i i I I I i I I � I I i I II i i I I i i I it ASPPL-GEN-02(1/05) Page 1 of 1 I I III II POLICE PROFESSIONAL LIABILITY THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY GENERAL TERRORISM EXCLUSION (FOR CERTIFIED ACTS OF TERRORISM AND OTHER ACTS OF TERRORISM) This endorsement, effective 61/1/2006 forms a part of Policy No. LE000030-02 issued to City of Renton by Aspen Specialty Insurance Company. VI This endorsement modifies insurance provided under the following: POLICE PROFESSIONAL LIABILITY COVERAGE FORM It is agreed that this policy shall not provide coverage for"any injury or damage" arising, directly or indirectly, out!1of a"certified act of terrorism or another act of terrorism". "Celrtified act of terrorism" means an act that is certified by the Secretary of the Treasury, in concurrence with the Secretary of State and the Attorney General of the United States, to be an act of terrorism pursuant to the federal Terrorism Risk Insurance Act of 2002. The federal Terrorism Risk Insurance Act of 2002 sets forth the following criteria for a"certified act of terrorism": 1. 'The act resulted in aggregate losses in excess of$5 million; and 12. 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 acting on behalf of any foreign person or foreign interest, 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. "Other act of terrorism" means a violent act or an act that is dangerous to human life, property or infrastructure that is committed by an individual or individuals and that appears to be part of an effort to coerce la civilian population or to influence the policy or affect the conduct of any government by coercion, and,the;act is not certified as a terrorist act pursuant to the federal Terrorism Risk Insurance Act of 2002. Fokhe purposes of this endorsement"any injury or damage" means any injury or damage covered under the!policy to which this endorsement is applicable, and includes but is not limited to loss, damages, clailms expenses, defense cots or clean-up costs. All other terms and conditions,of this Policy remain unchanged. I ; 1 I ASPPL JGEN03 Pagle 1 of 1 1 ISSIIUE DATE: 05/25/06 . li 11 POLICE PROFESSIONAL LIABILITY THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY FUNGI, BACTERIA, AND VIRUSES EXCLUSION Tpis endorsement, effective 6/1/2006 forms a part of Policy No. LE000030-02 issued to City of Renton by Aspen Specialty Insurance Company. This endorsement modifies linsurancp provided under the following: I FI�OLICE PROFESSIONAL LIABILITY COVERAGE FORM Ili consideration of the premium charged, it is hereby understood and agreed that the following Exclusion is added to the Policy: The Company shall not make any payment nor defend any suit in connection with any QLAIMS made against the INSURED: where all or any part of such CLAIM arises from, is based upon, or is in any way related to any allegation that Damages were suffered as a result of, presence; of, suspected presence of, or exposure to: fl I a. Fungi, including but not limited to mold; mildew, mushroom, rust, smuts, and yeast; b. Bacteria; c. Viruses; or d. Dust, spores, or odors, including but not limited to allergens, irritants, mycotoxins, endotoxins or scents, particulates, byproducts, microbial volatile organic compounds produced by, resulting from or associated with any of the organisms listed in a., b., or c. above; from any source whatsoever. Any loss, cost or expense arising out of the abating, testing for, monitoring of, mitigation of, cleaning up of, removal of, containment of, treatment of, detoxification of, neutralization of, remediation of, disposal of, or any other response to or assessment,of, the effects of any of the items in a., b., c. or d. above, from any source whatsoever. I , 11 other terms and conditions remain unchanged. ASPPL-GEN05(01/05) Page'1 of 1 ISSUE DATE: 05/25/06 II i L I !I POLICE PROFESSIONAL LIABILITY 1,1 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY l' I pi! CONSENT TO SETTLE ENDORSEMENT This endorsement, effective 6/1/2006 forms a part of Policy No. LE000030-02 issued to City of Renton by Aspen Specialty Insurance Company. This iendorsement modifies insurance provided under the following: POLICE PROFESSIONAL'LIABILITY COVERAGE FORM We will not settle any claim or"suit"without the first Named Insured's consent. However, if the first Named Insured refuses to consent to the settlement of such claim or"suit" after receiving our request for consent to settle, and the first Named Insured elects to contest such claim or"suit"and continues legal proceedings for such claim or"suit", then our , Liability to pay damages under this policy will be the lesser of the following: I' !i! 1. Up to and not to exceed the amount of the damages set forth in our request to settle, Or 2. The Limits of Insurance as set forth in Section 3. on the Declarations. Additionally, all further legal expenses, costs, and supplementary payments, incurred by an insured after the date of such refusal of the 11i consent to settle, will be the responsibility of such insured. II! • 1' 11 1 , !II 11 ASPPL-LE003(01/05) • 111 Page 1 of 1 ' ISSUE DATE: 05/25/06 • ! P I II . II' III i POLICE PROFESSIONAL LIABILITY 1r THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY P1 I EXCLUSION -ASBESTOS -HAZARDOUS PROPERTIES This endorsement, effective 6/1/2006 forms a part of Policy No. LE000030-02 issued to City of Renton by Aspen Specialty Insurance Company. This endorsement modifies insurance provided under the following: POL CE PROFESSIONAL LIABILITY COVERAGE FORM �!I I The following exclusion is added to SECTION .1 -COVERAGE: This insurance does not apply to any claim made against the insured for any loss, cost or expense arising out of, resulting from, caused or contributed to by asbestos Or exposure to asbestos. This includes, but not limited to, any costs for abatement, Mitigation, removal or disposal of asbestos. This exclusion also includes, but is not limited to: 1. Any supervision, instructions, recommendations, requests, warnings or advice ;given or which should have been given in connection with the above; and I2. Any obligation to share damages with or repay someone else who must pay damages. ;Ij I it I III I III I II i Ili li! III r Ili I IIII Ilr I I I' I I , I^' IIII i 111 hj VI I I r ASPPL-LE005(01/05) :1 Page 1 of 1 II' ISSUE DATE: 05/25/06 pl I L. � I POLICE PROFESSIONAL LIABILITY THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY i,, !' j PUNITIVE & EXEMPLARY DAMAGES ENDORSEMENT This endorsement, effective 6/1/2006 forms a part of Policy No. LE000030-02 issued to City of Renti n by Aspen Specialty Insurance Company. This endorsement modifies insurance provided under the following: POLICE PROFESSIONAL LIABILITY COVERAGE FORM The following exclusions are deleted in their entirety from SECTION 1. COVERAGES, CO�ERAGE A. Bodily Injury and Property Damage, Subsection 2. Exclusions. I. Any claim or"suit"seeking Punitive or Exemplary Damages. If a suit shall have been brought against the insured for a claim falling within the coverage provided by this policy, seeking compensatory and punitive or exemplary damages, we will afford a defense to such action, but. we shall not have an obligation to pay for any cost, interest, or damages attributed to punitive or exemplary damages. I' and ,SECTION 1. COVERAGE, COVERAGE B. Personal Injury Liability, Subsection 2. Exclusions. `g. Any claim or"suit" seeking punitive or exemplary damages. If a suit shall have been brought against the insured for a claim falling within the coverage provided by this policy, seeking both ' compensatory and punitive or exemplary damages, we will afford a defense to such action, 1, but we shall not have an obligation to pay for any cost, interest, or damages attributed to p punitive or exemplary damages. 1This endorsement only applies if punitive and exemplary damages are allowed in the jurisdiction !where the action is filed. • II it i'I I ASPPL-LE006 „ Page 1 of 1; ISSUE DATE: 05/25/06 11 1"I 1 1 POLICE PROFESSIONAL LIABILITY lid THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY SERVICE OF SUIT This endorsement, effective 6/1/2006 forms a part of Policy No. LE000030-02 issued to City of Renton by Aspen Specialty Insurance Company. This endorsement modifies insurance provided under the following: POLICE PR 0 FESSIONAL LIABILITY COVERAGE FORM 1111 It is agreedthat your policy is amended by adding thereto the following condition: In the event of our failure to pay any amount claimed to be due under your policy, we, at your request, agree to submit to the jurisdiction of a Court of Competent jurisdiction within the United States and will comply with all requirements necessary to give such Court jurisdiction, and all matters arising hereunder shall be determined in accordance with the law and practice of such Court. However, we specifically reserve the right to remove any suit brought under,this policy to a Federal Court of the United States. 41 1 Service of process in such suit may be made upon the highest one in authority bearing the title Commissioner, Director, or Superintendent of Insurance of the State or Commonwealth wherein the property covered by your policy is located, and in anyl'suit instituted against us upon this contract, we will abide by the final decision of such Court or any Appellate Court in the event of an appeal. The one in authority bearing the title Commissioner, Director, or Superintendent of Insurance of the State or Commonwealth wherein the property covered by your policy is located is hereby authorized and directed to accept service of[process on our behalf in any such suit, and/or upon your request, to give a written undertaking to you that :hey will enter a general appearance on our behalf in the event such a suit is instituted. iI 1 We hereby appoint the following as duly authorized agent, to which a copy of the service of process should be forwardedi,by the Commissioner for delivery to us: For policies issued by Aspen Specialty Insurance Company: Claims Manager Aspen Specialty Insurance Company 99 High Street Boston, MA 02110 1111 Ih il p1 11, ill 1 1PPL-GEN01 (01/05) ige 1 of 1 1,1 ISSUE DATE: 05/25/06 ' f I I'' I I� I 11, ;Self-Insured Coverage Document II III ,J1 li', # CT. 2007 • I"' I ICI I I Ili II � II„ ,I I „,, ml p., f' i I WA • $` cities • I Insurance Authority pia I �p I 'u I WCIA Coverage Document#CT-2007 Page 2 I�' 1 WASHINGTON CITIES INSURANCE AUTHORITY 1" Ili j Self-Insured Coverage Document CT-200 January 1,2007,to January 1,2008 In 12:01 am Pacific Standard Time LIMITS/ULTIMATE NET LOSS: i'h I SELF-INSURED LAYER LIMIT: $3,000,000 PER OCCURRENCE REINSURED EXCESS LAYER LIMIT: $12,000,000 PER OCCURRENCE 11 TOTAL LIMIT: $15,000,000 PER OCCURRENCE,subject to aggregates and sub-limits 111 below and in Section I.D,(Coverage Limits)in the WCIA Joint Protection Program. iio AGGREGATE LIMITS/SUB-LIMITS: !' Above$4,000,000 Per Occurrence $10,000,000 annual aggregate Product Liability coverage per Member,$10,000,000 Public Official Liability annual aggregate per Member,$10,000,000 Employment Practice Liability annual aggregate per Member and a$25,000,000 annual aggregate per Member for Law Enforcement Liability arising out of Member owned jails or holding facilities with overnight or greater length of stay for the confinement of inmates. $3,000,000 per occurrence limit and$3,000,000 annual aggregate per Member IIIapplying to Terrorism. 111 I $1,000,000 per occurrence limit and$1,000,000 annual aggregate limit per it Member applying for the release,discharge or backup of liquids and/or effluents from waste water and/or sanitary sewer lines owned,leased, maintained or l' I operated by a"Member". I DESCRIPTION OF COVERAGE: General Liability,Automobile Liability,Stop-Gap Coverage, Errors or Omissions Liability and Employee Benefits Liability. 11; LIMITS OF LIABILITY FOR ALL COVERAGE. I; ih I The Limits/Ultimate Net Loss stated herein and the rules below set the maximum the Authority I„ will pay regardless of the number of: a. members; b. claims made or lawsuits brought;or 1" c. persons or organizations making claims or bringing lawsuits (TERRITORY:This coverage applies to General Liability,Automobile Liability,Stop-Gap Coverage, Errors or Omissions Liability and Employee Benefit Liability occurring anywhere in the United States of America,its territories and possessions or Canada. I I 'MEMBERS COVERED BY THIS AGREEMENT: 1;' 1;1Aberdeen Benton County Emergency Services Cheney 'Anacortes Bonney Lake Chelan I;!A Regional Coalition for Housing Bothell Clark Regional Emerg.Serv.Ag.(CRESA) Arlington Burien Clarkston Auburn Camas Cle Elum j'Bainbridge Island Cashmere Clyde Hill Battle Ground Centralia Coupeville I Benton City Chehalis j. III 1111 iu i WCIA Coverage Document#CT-2007 Page 2 P 1 Covington Medina Snohomish Cowlitz-Wahkiakum Council of Gov. Mercer Island Snohomish Co.Emergency Radio Sys. Des Moines Metropolitan Park District of Tacoma SNOCOM/Medic 7 Eastside Public Safety Communications Mill Creek SNOPAC eCity Gov Alliance Milton Snoqualmie Edgewood Monroe Soap Lake Edmonds Monroe Fire District Spokane Valley Elma I Montesano Stanwood Emergency Services Coord.Agency Moses Lake Steilacoom Enumclaw Mountlake Terrace Sumner I,ife Mount Vernon Three Rivers Reg.Wastewater Auth. George Mukilteo Thurston Regional Planning Council Goldendale Newcastle Toppenish Grandview Normandy Park Tukwila Grays Harbor 911 Communications North Bonneville Tumwater Hoquam Northshore Utility District Union Gap Issaquah Oak Harbor University Place Kelso Ocean Shores Valley Communications Kenmore Olympia Walla Walla Kent Othello WA Cities Insurance Authority Kirkland Pasco Warden Lacey PENCOM Washougal La Conner Port Angeles Water Operating Board Lake Forest Park Port Townsend Westport Lake!Stevens Pullman WHITCOM 911 Leavenworth Pullman-Moscow Regional Airport Woodinville Long Beach Pullman Metropolitan Park District Woodway Longview Puyallup Yakima Valley Conference of Gov. 'LOTT Alliance Renton Valley Regional Fire Authority Mabton Richland Yarrow Point Maple Valley Ridgefield Zillah (Marysville Sammamish 'Marysville Fire District Shelton !McCleary Shoreline (Medical Lake Skagit 911 This document is not an insurance policy. The Washington Cities Insurance Authority(Authority)is not an insurance 'Company. This document is an agreement by the Authority and its members to pay all covered losses subject to the limits and other terms and conditions of this Agreement and any addenda attached. In consideration of the assessments paid by the members,this Agreement provides the following coverages: 1111 I. COVERAGE AGREEMENTS A. GENERAL&AUTOMOBILE LIABILITY COVERAGE 1. Coverage In consideration of the assessment herein provided,the Authority hereby agrees,subject to the limitations,terms and conditions hereinafter mentioned,to pay on behalf of the member all sums which the member shall be obligated to pay by reason of liability: I a. imposed upon the member by law;or b. assumed under contract or agreement by the member and/or any officer, director, official,or employee of the member,while acting in his or her capacity as such: 1' II for damages, direct or consequential and expenses,all as more fully defined by the term"ultimate net loss"on account of: 1' i. personal injury, ii. property damage, I'll 111 1 11 I ill 1 it WCIA Coverage Document#CT-2007 Page 2 iii. advertising liability, caused by or arising out of an occurrence during the coverage period The coverage for the liability assumed under contract in I.A.1.b.above shall be limited to the terms,conditions, 1; limitations and exclusions in the Coverage Document. "Damages"as used in this section and this Agreement,do not include punitive or exemplary damages or fines or penalties awarded against the member. 2. Exclusions This Agreement is subject to the following exclusions: 1.1 111 This Agreement shall not apply to any claims against any member: lr a. Regarding any obligation for which the member or any carrier as insurer may be held 1;' liable under any Worker's Compensation, unemployment compensation or disability benefits law,or under any similar law; f" I. with respect to liability arising out of bodily injury to Law Enforcement Officers and Fire Fighters employed by the member it is agreed that exclusion(a)above is deleted and the following substituted therefore: this Agreement does not apply to personal injury of any employee arising out of and in the course of their employment by the member to the extent that 119 benefits for such personal injury are either payable or required to be provided under the"Washington Law Enforcement Officer's and Fire Fighter's Retirement System Act." Ik b. For personal injury to or sickness,disease or death of any employee of the member arising out of and in the course of their employment by the member; c. For medical malpractice injury: 11; against any member engaged in the business or occupation of providing medical,surgical,dental,X-ray or nursing service or treatment or the furnishing it of food or beverages in connection therewith. This exclusion shall not apply to paramedics. I! ' ii. due to injury caused by any member if such member is engaged in the, business or occupation of providing the furnishing or dispensing of drugs or 1,1 medical,dental or surgical supplies or appliances. This exclusion shall not apply to paramedics. d. For advertising activities,including claims made against any member for: 1!1° i. failure of performance of contract, but this shall not relate to claims for 1,1 unauthorized appropriation of ideas based upon alleged breach of an implied contract; i!„ ii. infringement of registered trade mark,service mark or trade name by use thereof as the registered trade mark,service mark or trade name of goods or 14 services sold,offered for sale or advertised, but this shall not relate to titles or slogans; 11;1 iii. incorrect description of any article or commodity; iv. mistake in advertised price; 1y 1° I 11i iii I 111 IjiI WCIA Coverage Document#CT-2007 Page 3 to Ili e. For: Ili i. contamination of any environment by pollutants that are introduced at any time, anywhere, in any way; ii. any bodily injury, personal injury,property damage,costs or other loss or damage arising out of such contamination,including but not limited to,cleaning Ili upon,remedying or detoxifying such contamination;or iii. the payment of sums related to(1)the investigation or defense of any loss; injury or damage or(2)payment of any cost,fine or penalty or(3)payment of any expense involving a claim or suit related to i or ii above. As used in this Exclusion,the following terms will have the following meanings: (1) "Contamination"means any unclean or unsafe or damaging or injurious or unhealthful condition arising out of the presence of pollutants,whether permanent or transient in any environment. (2) "Environment"includes any person,any man-made object or feature, 11' animals,crops and vegetation, land, bodies of water,underground water or water table supplies,air and any other feature of the earth or its atmosphere,whether or not altered,developed or cultivated,including but not limited to any of the above,currently or formerly owned,controlled, leased,used or occupied by the member. (3) "Pollutants"means smoke,vapors,soot,fumes,acids,sound,alkalis, chemicals, liquids,solids,gases,thermal pollutants,waste materials and all other irritants,poisons or contaminants. iv. However,the pollution exclusion as stated above in section 2e(i),(ii),(iii)will not, apply to liability from an"Occurrence"causing"Personal Injury"or"Property Damage"when the cause of such"Personal Injury"or"Property Damage"is the Ili release,discharge or backup of liquids and/or effluents from waste water and/or sanitary sewer lines owned, leased, maintained or operated by a"Member but, the coverage limits for such an"Occurrence"shall be limited to a special per occurrence and annual aggregate limit as stated in the AGGREGATE 1!1 LIMITS/SUB-LIMITS section on page 2 of this document and no other coverage limits of this document shall apply to any such"Occurrence". f. For personal injury or property damage due to war,whether or not declared,civil war, insurrection, rebellion or revolution or to any act or condition incident to any of the foregoing,with respect to liability assumed by the member under contract; lip g. For personal injury or property damage arising out of the ownership,maintenance, 1"' operation,use,loading or unloading of: any aircraft owned or operated by any member, Il any other aircraft operated by any person in the course of his/her employment by any member; iii. any aircraft in the care,custody or control of the member for storage,servicing or fueling;or iv. any watercraft over 30 feet. h. For liability imposed upon a member or which is imputed to a member under the Federal"Employee Retirement Income Security Act of 1974"and any law amendatory thereafter; jl lu I° I 111, l ; !, I 'CIA Coverage Document#CT-2007 Page 4 For property damage to premises alienated by the member arising out of such premises or any part thereof; p, j For loss of use of tangible property which has not been physically injured or destroyed resulting from: a delay in or lack of performance by or on behalf of the member of any contract or agreement,or ii. the failure of the member's products or work performed by or on behalf of the member to meet the level of performance,quality,fitness or durability warranted or represented by the member; ill but this exclusion does not apply to loss of use of other tangible property resulting from the sudden and accidental physical injury to or destruction of the member's products or iP work performed by or on behalf of the member after such products or work have been put to use by any person or organization other than a member. k. For property damage to the member's products arising out of such products or any part of such products; For property damage to work performed by or on behalf of the member arising out of the work or any portion thereof,or out of materials,parts or equipment furnished in connection therewith; m. For damages claimed for the withdrawal,inspection, repair,replacement,or loss of use ill of the member's products or work completed by or for the member or of any property of which such products or work form a part, if such products,work or property are 111 withdrawn from the market or from use because of any known or suspected defect or Ip deficiency therein; n. For any liability arising out of or in any way connected with the operation of the principles of eminent domain,condemnation proceedings,or inverse condemnation, by whatever name called,whether such liability accrues directly against the member or by lil virtue of any agreement entered into by or on behalf of the member; o. For any liability arising out of the operations,ownership, maintenance or use of any III airport,hospital,alcoholic center; "jail facilities",including detoxification units(commonly known as"drunk tanks")are not to be considered as"alcoholic centers". 111 p. For any liability arising out of ownership,operation, maintenance or use of any transit thereof;11, district buses or other transit however,this exclusion not n does apply tolliabilliiity arising out of transit ing loading and unloading buses chartered by a member in respect to special events. 1, q. For any liability assumed by the member under any contract or agreement or resulting from the member's failure to perform,failure to pay or default on any contract or agreement. This exclusion would not apply to contracts or agreements to hold harmless �I6 or indemnify another person or entity as contemplated by Section A, 1 b of the General and Automobile Liability coverage. r. For any liability for fines, penalties, punitive or exemplary damages awarded against a member for any reason. s. For any liability arising out of the failure to adequately supply,interruption or impairment of electrical,gas,water,or sewer service. 1 it t. For nuclear energy liability as further described below: !''' i. This Agreement does not apply: I 4 li !Ili WCIA Coverage Document#CT-2007 Page 5 (1) Under any Liability Coverage,to personal injury or property damage: II, (a) with respect to which a member is also an insured under a nuclear energy liability policy issued by Nuclear Energy Liability Insurance Association,Mutual Atomic Energy lo„ Liability Underwriters or Nuclear Insurance Association of Canada,or would be an insured under any such policy but for its termination upon exhaustion of its limit of liability;or Ik (b) resulting from the hazardous properties of nuclear material and with respect to which (i) any person or organization is required to maintain financial protection pursuant to the Atomic Energy Act of 1954,or any law amendatory thereof,or (ii) the member is,or had this Agreement not been issued would be,entitled to indemnity from the United States of America,or any agency thereof, under any agreement entered into by the United States of America,or any agency thereof,with any person or organization. Ili (2) Under any medical payments coverage,or under any supplementary payments provision relating to first aid,to expenses incurred with respect to bodily injury resulting from the hazardous properties of nuclear material and arising out of the operation of a nuclear facility by any person or organization. (3) Under any Liability Coverage,to bodily injury or property damage resulting from the hazardous properties of nuclear material,if (a) the nuclear material • (i) is at any nuclear facility owned by,or operated by or on behalf of,a member,or (ii) has been discharged or dispersed therefrom; (b) the nuclear material is contained in spent fuel or waste at any time possessed,handled, used,processed,stored, Ili transported or disposed of by or on behalf of a member,or (c) the bodily injury of property damage arises out of the furnishing by a member of services,materials,parts or equipment in connection with the planning,construction, maintenance,operation or use of any nuclear facility,but if such facility is located within the United States of America,its li territories or possessions of Canada,this exclusion(3) applies only to property damage to such nuclear facility and any property there at. As used in this exclusion: (1) "hazardous properties"include radioactive toxic or explosive properties, (2) "nuclear material"means source material,special nuclear material or by-product material, �II i!I jp WCIA Coverage Document#CT-2007 Page 6 14 I (3) "source material","special nuclear material"and"by-product material" have the meanings given them in the Atomic Energy Act of 1954 or in any law amendatory thereof, (4) "spent fuel"means any fuel element or fuel component,solid or liquid, which has been used or exposed to radiation in a nuclear reactor; li (5) "waste"means any waste material (a) containing by-product material other than the tailings or wastes produced by the extraction or concentration of IV uranium or thorium from any ore processed primarily for its source material content,and III (b) resulting from the operation by any person or organization of II. any nuclear facility included under the first two paragraphs of the definition of nuclear facility. (6) "nuclear facility"means (a) any nuclear reactor (b) any equipment or device designed or used for III (i) separating the isotopes of uranium or plutonium, (ii) processing or utilizing spent fuel,or (iii) handling,processing or packaging waste. (c) any equipment or device used for the processing,fabricating or alloying of special nuclear material if at any time the total amount of such material in custody of the member at the premises where such equipment or device is located consists of or contains more than 25 grams of plutonium or uranium 233 or any combination thereof,or more than 250 grams of uranium 235. (d) any structure, basin,excavation, premises or place prepared or used for the storage or disposal of waste and includes the site on which any of the foregoing is located,all operations, conducted on such site and all premises used for such operations. "Nuclear reactor"means any apparatus designed or used to sustain nuclear fission in a self supporting chain reaction or to contain a critical mass of fissionable material. "Property damage"includes all forms of radioactive contamination of property. u. For liability,defense costs,fines or damages arising out of the willful or wanton violation of any civil statute,ordinance or regulation committed by or with the knowledge or consent of any member,except that any fact pertaining to any one insured shall not be imputed to any other member for the purpose of determining the application of this exclusion. li v. For any liability,defense costs,fines or damages which arise out of, brought about or contributed to by fraud,dishonesty or bad faith by a member or arising out of the willful violation of a penal code or ordinance committed by or with the knowledge or consent of any member or claims of injury arising out of the acts of fraud committed by or at the direction of the member with affirmative dishonesty or actual intent to deceive or defraud,except that any fact pertaining to any one member shall not be imputed to any other member for the purpose of determining the application of this exclusion. I' I il 16 I ' jq WCIA Coverage Document#CT-2007 Page 7 III w. For any liability of a member arising in whole or in part,out of any member obtaining jh remuneration or financial gain to which the member was not legally entitled,except that any fact pertaining to any one member shall not be imputed to any other member for the purposed of determining the application of this exclusion. x. For any property damage arising out of subsidence. "Subsidence"means any earth movement,including but not limited to settling,expansion,earth sinking,earth rising or shifting,slipping,falling away,tilting,caving in,eroding, mud flow and any other movement of land or earth. This exclusion does not apply to property damage arising out of subsidence proximately caused by a negligent act or omission of any member. I�. y. For any liability arising out of the rupture, bursting,overtopping,accidental discharge or partial or complete structural failure to any owned dams. "Dams"means any artificial barrier,together with appurtenant works,which: 1. Is 25 feet or more in height from the foot of a natural bed of stream or watercourse at the down stream toe of the barrier,or from the lowest elevation of the outside limit of the barrier,if it is not across a stream channel or water course to maximum possible water storage elevation;or 2. Has water impounding capacity of 50 acre feet or more. z. For any liability for refund of taxes,fees or assessments. aa. Arising out of or resulting from: 1. Inhaling,ingesting,or prolonged physical exposure to asbestos or goods or products containing asbestos; 2. The use of asbestos in constructing any good, product or structure;or 3. The removal of asbestos from any good, product or structure;or 4. The manufacture,sale,transportation,storage or disposal of asbestos or goods or products containing asbestos. 111' ab. To any liability,indemnity,defense or responsibility of any kind arising out of or imposed III by Chapter 98(R48)known as the Private Property Regulatory Fairness Act. ac. For any liability, indemnity,or defense arising out of the operations of: 1. Any separate non-member legal or administrative entity created in accordance with 11 Chapter 39.34 of the Revised Code of Washington entitled,"Interlocal Cooperation Act",excluding the Authority its employees,officers and members;or 2. Any local improvement districts and/or taxing districts including but not limited to 1111 Fire Protection Districts(RCW Chapter 52), Port Districts(RCW Chapter 53), Public Utility Districts(RCW Chapter 54),Sewer Districts(RCW Chapter 56),Water, Districts(RCW Chapter 57), Intercounty Rural Library Districts(RCW Chapter 27.14), Irrigation Districts(RCW 87.03),Lake Management Districts(RCW 36.61), County Roads&Bridges Service Districts(RCW 36.83)and County Park and ' Recreation Districts(RCW 36.69)excluding any authority members. This exclusion is not applicable to any appointed or elected official of a member while acting in the scope of their lawful duties for or on behalf of a member as a board or commission representative to organizations described in 1.and 2.above. ad. Any liability, indemnity,consequential damages,or defense arising out of or occurring, in whole or in part,due to the failure of or improper operation of any member-owned or used computer,computer software,or equipment with an embedded computer chip due lib ' 111 j;li WCIA Coverage Document#CT-2007 Page 8 to said items'failure to recognize correctly the year 2000 and beyond;or,due to said' items'failure to operate or operate correctly on or after January 1,2000. ae. Any liability,indemnity,consequential damages or defense arising out of or occurring in whole or in part due to a member's criminal actions or conduct that violates any criminal statute,code,ordinance or law. B. STOP-GAP COVERAGE 1. Coverage In consideration of the assessment herein provided,it is agreed that if, under any circumstances, n it is determined that any employee of the member who is reported and declared under the Worker's Compensation Law or Laws of the State of Washington is injured in the course of their employment but is,not entitled to receive(or elects not to accept)the benefits provided by the aforementioned Law,then this policy shall cover the legal liability of the member for such personal injury,disease,or death and pay on behalf of the member all sums which the member shall become legally obligated to pay as damages and expenses,all as defined by the terms "ultimate net loss"and"occurrence". III 2. Exclusions The coverage granted hereunder shall not apply to: a. Personal injury,disease or death suffered or caused by any person knowingly employed by the member in violation of any law as to age,or under the age of 14 years regardless of any such law., b. any claim recoverable under the insurance provisions of any Worker's Compensation or Occupations Disease Act or Law or under the U.S.Longshoremen's and Harbor Workers'Compensation Act or any other insurance available for the protection of the member; c. Personal injury,disease or death caused by or arising from the use,maintenance,or operation of aircraft; d. any premium assessment, penalty,fine or other obligation imposed by any Worker's Compensation Law; e. any claim for personal injury, disease,or death with respect to which the member is deprived of any defense or defenses or is otherwise subject to penalty because of default in premium payment under,or any other failure to comply with the provisions of the Worker's Compensation Law or Laws of the State above named. C. ERRORS OR OMISSIONS LIABILITY COVERAGE III 1. Coverage III In consideration of the assessment herein provided,the Authority shall pay on behalf of its member all sums which the member shall become legally obligated to pay because of any occurrence which results in a claim for damages and expenses, all as more fully defined by the term"ultimate net loss",because of any claim for breach of any duty made against the member by reason of any negligent act,error or omission committed by the member during the policy period. I I ° 2. Exclusions The exclusions applicable to Comprehensive General Liability section also apply to this section. Additionally,the Errors and Omissions section does not apply: I � I! ' li' WCIA Coverage Document#CT-2007 Page 9 a. to physical injury to or destruction of tangible property including the loss of use thereof at any time resulting therefrom; b. liability or responsibility arising out of or imposed by any constitutional provision,statute, county, municipal or local ordinance or law administrative order,or rule of law dealing with the power of eminent domain,condemnation or inverse condemnation,or any acts arising out of or caused by the member(s)thereunder; c. to any dishonest,fraudulent,criminal or malicious act; d. to claims,occurrences or accidents which are covered under any other section of this Agreement; e. to any claims or for any liability arising out of the member's failure to secure a proper bond or secure payment for any contractor,subcontractor or third person who has performed work or provided materials to the member as part of the performance of any contract for the benefit of the member. 3. Prior Wrongful Acts Claims based on wrongful acts that occurred before the effective date of WCIA membership will also be covered, provided that all of the following conditions are met: a. The wrongful act must have occurred within the prior thirty six(36)month period prior to a member joining WCIA and be reported to WCIA within the next 12 month period; b. The member must not have had prior knowledge of the wrongful act or claim on the effective date of WCIA membership.nor have had any reasonable way to foresee that a claim might be brought; c. The claim must be for a wrongful act that would have been covered by the WCIA Coverage Document in force at the time the claim is presented to WCIA. d. The claim will only be indemnified up to the prior public officials or errors&omissions III insurance policy or WCIA liability limits,whichever is less; e. Use of any other available insurance covering the claim excludes the use of WCIA coverage; f. The prior wrongful act was within the course and scope of employment for employees or duties as a public official;and g. Prior to the expiration of their current insurance coverage and prior to joining WCIA,all potential losses that the member knew about must have been reported to their insurance carrier. h. The thirty-six(36)month prior coverage referenced in paragraph 3(a)shall only apply to members who have joined WCIA on or after June 1,2002. For members who have joined prior to June 1,2002,the prior coverage shall be twelve(12)months instead of thirty-six(36)months and be subject to all other conditions in 3(b),3(d),3(e),3(f), and ,1 3(g). 4. Optional Extended Reporting Period A member may,at its option,subject to WCIA approval, purchase an additional extended reporting period of twenty-four(24)months, provided that all the following conditions are met: 1ii a. The member requests the additional extended reporting period prior to the member joining WCIA; j!6 !, I I.. Ili WCIA Coverage Document#CT-2007 Page 10 b. The member shall purchase this coverage at a cost determined by an actuary hired by V' WCIA; c. The conditions applicable in Paragraph 3, Prior Wrongful Acts,also apply to this section with the exception of 3(a)and 3(d); d. The wrongful act must have occurred within the prior thirty-six(36)month period prior to a member joining WCIA and be reported to WCIA within the next thirty-six month period; e. If the optional extended reporting period is granted,the limit of liability for all prior ICI wrongful acts coverage is$5,000,000 per occurrence and$5,000,000 in the aggregate; f. The member shall have joined WCIA on or after June 1,2002. 011 D. EMPLOYEE BENEFITS LIABILITY COVERAGE 1. Coverage I,, ° In consideration of the assessment herein provided,the Authority agrees with the member named in this Agreement as follows: a. The Authority will pay on behalf of the member all sums which the member shall become legally obligated to pay as damages and expenses,all as more fully defined by the term "ultimate net loss",because of any claim made against the member by any employee or 14 the beneficiaries or legal representatives thereof for injury arising out of any negligent act,error or omission,during the coverage period,of the member or any other person for whose acts the member is legally liable,in the administration of employee benefits as defined. 2. Definitions a. EMPLOYEE BENEFIT PROGRAM. The term"employee benefit program"shall,mean Group Life Insurance,Group Accident or Health Insurance, Pension plans,Worker's Compensation, Unemployment Insurance,Social Security and Disability Benefits,and li any other similar benefit program. b. ADMINISTRATION. As respects the coverage afforded hereby,the unqualified word li "administration"whenever used shall mean: giving counsel to employees with respect to the employee benefits; interpreting employee benefits; I!' iii. handling of records in connection with employee benefits; iv. affecting enrollment,termination or cancellation of employees under employee ili benefit programs; �iG I Ili v. performed by a person authorized by the member to do such acts. 3. Exclusions 11, This Agreement does not apply: 111 a. to any dishonest,fraudulent,criminal or malicious act; b. to libel,slander,discrimination,or humiliation; c. to bodily injury,or sickness,disease,or death of any person; d. to injury to or destruction of any tangible property, including the loss of use thereof; ji j� I WCIA Coverage Document#CT-2007 Page 11 e. to any claim based upon the member's failure to comply with the federal"Employee Retirement Income Security Act of 1974"; f. to any claim for failure or performance of contract by any insurer; Ali g. to any claim based upon the member's failure to comply with any law concerning Worker's Compensation, Unemployment Insurance,Social Security or Disability Benefits. I. COVERAGE DEFINITIONS This Agreement is subject to the following definitions: A. MEMBER "Member"includes the Washington Cities Insurance Authority and any member municipal corporation, city,town or municipal entity in the State of Washington. II The unqualified word"member"includes: 1. all officials,officers,employees,and volunteers working for or on behalf of the member and any person,organization,trustee or estate to whom or to which the member is obligated by virtue of a written contract to provide insurance to the same extent as is afforded by this Agreement,but only with respect to actions within the scope of their employment by or on behalf of the member; 2. any person serving on the members governing body,any persons serving on the members II boards or commissions,any elected or appointed official of the member,any other employee,or any volunteer serving the member;if the person is acting in the scope of their employment, appointment,duties,or service to the member; except with respect to the ownership, maintenance or use, including loading or unloading,of automobiles while away from premises owned by,rented to or controlled by the member or the ways immediately adjoining; the term"member"does not include any private for profit businesses or corporations,volunteer organizations or non-profit corporations and/or their officers,officials,or members when acting in I.. or for the interests of and/or at the direction of said business,organization or corporation; Ili 3. any person while using an automobile owned by,leased,rented,or loaned to the member or hired for use on behalf of the member or any person or organization legally responsible for the use thereof,provided the actual use of the automobile is by the member or with the member's permission,and any executive officer,other employee,director or volunteer of the member with respect to the use of an automobile not owned by the member in the business of the member. The coverage with respect to any person or organization other than the member does not apply under this section: a. to any person or organization,or to any agent or employee thereof;operating an II automobile sales agency,repair shop,service station,storage garage or public parking place,with respect to any occurrence arising out of the operation thereof; b. with respect to any automobile hired by or loaned to the member,to the owner or a lessee thereof other than the member,or to any agent or employee of such owner or Ili lessee. B. PERSONAL INJURY The term"personal injury"means: d' I III III II i„ WCIA Coverage Document#CT-2007 Page 12 III 1. bodily injury,sickness,disease,disability or shock,including death arising therefrom, medical II j malpractice injury,including emergency medical treatment and all acts of paramedics,or if arising out of the foregoing,mental anguish and mental injury; 2. false arrest,false imprisonment,wrongful eviction,wrongful detention,or malicious prosecution; or i 3. libel,slander,defamation of character, humiliation or invasion of the rights of privacy,unless arising out of advertising activities; 4. unlawful discrimination not committed by or at the direction of any executive officer of the member,but only with respect to the liability other than fines and penalties imposed by law; PII 5. false or improper services of process;and 111 6. assault or battery committed for the purpose of protecting persons or property or incident to an arrest. C. PROPERTY DAMAGE The term"property damage"means loss of or direct damage to or destruction of tangible property (other than property owned,rented or leased by the member),which occurs during the policy period, including loss of use thereof at any time resulting therefrom and loss of use of tangible property which has not been physically injured or destroyed. D. ADVERTISING LIABILITY The term"advertising liability"means: 1. libel,slander or defamation; 2. any infringement of copyright or of title or of slogan; 3. piracy or unfair competition or idea misappropriation under an implied contract; II 4. any invasion of right of privacy; III committed or alleged to have been committed in any advertisement,publicity article, broadcast or telecast and arising out of the members advertising activities. E. OCCURRENCE The term"occurrence"means an accident or a happening or event or a continuous or repeated exposure to substantially the same general harmful conditions which unexpectedly and unintentionally result in personal injury, property damage,advertising liability,errors or omissions liability including wrongful acts or stop-gap liability during the policy period. All such exposure to substantially the same jl general conditions existing at or emanating from one location shall be deemed one occurrence. 11 With respect to"Personal Injury'and"Property Damage"all"Damages"arising out of substantially the same"Personal Injury"or"Property Damage"regardless of the frequency,timing,repetition,the number or kind of events or offenses,or the number of"Claimants",will be considered as arising out of one"Occurrence"and shall be deemed to have occurred on the date of the first event or offense 1,1 causing"Personal Injury"or"Property Damage". Only one Self-Insured Coverage Document issued by WCIA and one limit of coverage is applicable to any one "Occurrence". I Further,the definition of occurrence includes any intended act by or at the direction of the member which results in personal injury,if such injury arises solely from the use of reasonable force for the 1,1 purpose of protecting persons or property or making a lawful arrest. 111 HIV li 11 WCIA Coverage Document#CT-2007 Page 13 F. ULTIMATE NET LOSS The term"ultimate net loss"means the total sum which the member becomes obligated to pay by reason of liability claims,covered hereunder,either through adjudication or compromise and shall also include hospital, medical and funeral charges and all sums paid as salaries,wages,compensation, fees,charges and law costs,premiums on attachment or appeal bonds,interest expenses for doctors, lawyers, nurses and investigators and other persons,and for litigation,settlement,adjustment and investigation of claims and suits covered hereunder. Ultimate net loss shall include all sums paid as salaries,expense,or costs to lawyers,or a lawyer's representative,other than paid employees of the member,and investigators, retained experts or other persons rendering services in handling specific Ilk, litigation. Other salaries paid to employees of the member or the company;fees paid to the member's service company for handling claims are excluded from the ultimate net loss. G. SELF-INSURED RETENTION The term"self-insured retention"means the amount of"ultimate net loss"payable by the member in respect of each occurrence. H. PRODUCTS AND COMPLETED OPERATIONS LIABILITY 11' The term"products liability"means: 1. liability arising out of goods or products manufactured,sold,handled or distributed by the member or by others trading under their name if the occurrence occurs after possession of such goods or products has been relinquished to others by the member or by others trading under their name and if such occurrence occurs away from premises owned,rented or controlled by the member; provided such goods or products shall be deemed to include any container thereof,other than a vehicle,but shall not include any vending machine or any property,other than such container, rented to or located for use of others but not sold; 2. The term"completed operations"means liability arising out of operations,if the occurrence occurs after such operations have been completed or abandoned and occurs away from 11 premises owned,rented or controlled by the member,provided operations shall not be deemed incomplete because improperly or defectively performed or because further operations may be required pursuant to an agreement,provided further the following shall not be deemed to be "operations"within the meaning of this paragraph, a. pick-up or delivery,except from or onto a railroad car, b. the maintenance of vehicles owned or used by or in behalf of the member, c. the existence of tools, uninstalled equipment and abandoned or unused materials. o I. ANNUAL PERIOD 1,1 y, The term"each annual period"means each consecutive period of one year commencing from the effective date of'this Agreement. J. AIRCRAFT The term"aircraft"means any heavier than air or lighter than air aircraft designed to transport persons IN or property. K. AUTOMOBILE The term"automobile"means a land motor vehicle,trailer or semi-trailer designed for travel on public roads(including any machinery or apparatus attached thereto),but does not include mobile equipment. C 1 IP Ali I WCIA Coverage Document#CT-2007 Page 14 L. PARAMEDIC The term"paramedic"shall include all personnel who may engage in rendering emergency medical assistance,including but not limited to the categories defined in RCW 18.73 and RCW 18.71.200: "Emergency medical technicians,""Physicians trained mobile intravenous therapy technicians," "physicians trained mobile airway management technicians,"and physicians trained mobile intensive care paramedics";provided that all amendments of RCW 18.73 and RCW 18.71.200 shall here and hereafter be included in the definition of the above categories. M. TERRORISM The term"Terrorism"means activities against persons,organizations or property of any nature: 1 1. That involve the following or preparation for the following: a. Use or threat of force or violence;or b. Commission or threat of a dangerous act;or c. Commission or threat of an act that interferes with or disrupts an electronic, II communication,information,or mechanical system;and 2. When one or both of the following applies: a. The effect is to intimidate or coerce a government or the civilian population or any segment thereof,or to disrupt any segment of the economy;or b. It appears that the intent is to intimidate or coerce a government,or to further political, ideological,religious,social or economic objectives or to express(or express opposition to)a philosophy or ideology. III. COVERAGE CONDITIONS This Agreement is subject to the following conditions: A. ASSESSMENT The assessment for this coverage varies from member to member and is set by the Board of Directors of the Authority in accordance with its By-laws and the Joint Protection Program. Coverage under this Agreement is conditioned on and offered in consideration of the assessment being paid by a member in the time,manner,amount and method specified by the Board of Directors, Bylaws and Joint Protection Program of WCIA. PI B. PRIOR EXCESS INSURANCE AND NON-CUMULATION OF LIABILITY Ili � It is agreed that if any loss is covered in whole or in part under any other excess policy issued to the member prior to the effective date hereof the limit of liability hereunder shall be reduced by any amounts due to the member on account of such loss under such prior excess insurance. Subject to the foregoing and to all the other terms and conditions of this Agreement in the event that personal injury or property damage arising out of an occurrence covered hereunder is continuing at the time of termination of this Agreement,the Authority will continue to protect the member for liability in respect of such personal injury or property damage without payment of additional assessment. C. INSPECTION AND AUDIT ill The Authority shall be permitted to examine and audit the member's books and records at any time during the coverage period and any extension thereof and within three(3)years after the final termination of this Agreement,as far as they relate to the assessment bases or the subject matter of this coverage. D. CROSS LIABILITY This Agreement shall protect each member in the same manner as though a separate Agreement had been issued to each,except that nothing herein shall operate to increase the Authority's liability beyond the amount or amounts for which the Authority would have been liable had only one member been named. 1.it WCIA Coverage Document#CT-2007 Page 15 E. NOTICE OF OCCURRENCE Whenever the authorized representatives of the member have information from which the member may reasonably conclude that an occurrence covered hereunder involves injuries or damages which,in the event that the member should be held liable,is likely to involve this coverage,notice shall be sent to the Authority as soon as practicable. However,immediate written notice shall be given to the Authority when any injury of the following type occurs: III 1. a fatality or death of a person in police custody, 2. amputation of a major extremity, i; 3. any serious head injury(including skull fracture or loss of sight of either or both eyes), 4. any injury to the spinal cord, 5. any disability of more than one year or where it appears reasonably likely that there will be disability of more than one year, II16. any burn 25%or more of the body, ii 7. heart or vascular disorders, 8. accidents where multiple injuries are involved or 9. acts of employment discrimination and/or harassment involving race,age,gender, religion, II, disability or prohibited retaliation Such notice shall contain particulars sufficient to identify the member and also reasonably obtainable information respecting the time, place and circumstances of the injury,the names and addresses of the injured and of available witnesses. If suit or other proceeding is brought against the member,the member shall immediately forward to the Authority every demand,notice,summons,or other process or true copies thereof received by the member or the member's representatives,together with copies of reports of investigations made by the member with respect to such claim,suit or proceeding. Ip F. ASSISTANCE AND COOPERATION The member and the Authority shall cooperate in all things in the defense of such claim,suit or proceeding. 111 G. APPEALS ;III, In the event the member elects not to appeal a judgment,the Authority may elect to make such appeal 1'1 at its cost and expense,and shall be liable for the taxable costs and disbursements and interest incidental thereto,but in no event shall the liability of the Authority for ultimate net loss exceed the amount set forth in this Agreement for anyone occurrence and in addition the cost and expense of I1 1 1 1 such appeal. g p H. BANKRUPTCY AND INSOLVENCY 11, In the event of the bankruptcy or insolvency of the member or any entity comprising the member,the Authority shall not be relieved thereby of the payment of any claims hereunder because of such P'I bankruptcy of insolvency. I. OTHER INSURANCE III If other valid and collectible insurance,which is written by another insurer is available to the member covering a loss also covered by this Agreement,other than insurance that is in excess of this coverage,the coverage afforded by this Agreement shall be in excess of and shall not contribute with such other insurance. it I I I!' lil ' ill 16 I it WCIA Coverage Document#CT-2007 Page 16 Ili II, III J. SUBROGATION The Authority shall be subrogated to the extent of any payment hereunder to all the member's rights of recovery thereof,and the member shall do nothing after loss to prejudice such right and shall do everything necessary to secure such right. K. CHANGES Notice to or knowledge possessed by any person shall not effect a waiver or change in any part of this Agreement or stop the Authority from asserting any right under the terms of this Agreement;nor shall the terms of this Agreement be waived or changed,except by addenda issued to form a part hereof, II signed by the Authority. pl L. ASSIGNMENT Assignment of interest under this Agreement shall not bind the Authority unless and until its consent is endorsed hereon. M. CANCELLATION III Refer to the language of the Joint Protection Program,Article 8. Cov2007 it �I I II' I lip MI6 I' I p4 I I I II Ijll ICI II � lil I I ; I'I III ll Liability Joint Protection Program 2007 III 14 II ill lu oil �Ib II' III WA ' cities Insurance Authority ill I I V\CIA Liability Joint Protection Program Page 2 WASHINGTON CITIES INSURANCE AUTHORITY 11 Liability Joint Protection Program for the Coverage Year January 1,2007 to January 1,2008 Il 12:01 A.M. Pacific Standard Time !6 I. AUTHORITY LIABILITY COVERAGE A. COVERAGE AGREEMENT The Washington Cities Insurance Authority,(Authority)has been formed to provide self-insured and standard insurance coverage as detailed in the Authority's Coverage Document. Coverage consists of two layers;a self-insured layer, and a reinsured excess layer. Dollar limits for each coverage layer are determined each year by the Authority's Board of Directors(Board)at the beginning of the coverage year. The Board also determines the terms and conditions of coverage and herein adopts the continuation of Coverage Document#CT-2007 as the limits,terms and conditions for the Self- Insured layer of coverage. The Board,at its discretion, may choose to purchase insurance in the Reinsured Excess Layer,or self-insure that layer. Purchased insurance policies may differ from each other and the Self-Insured II11, layer in language,exclusions,conditions and underwriters intent. Coverage among the various policies may not be continuous. In the event the Authority self-insures any Reinsured Excess Layer,the terms and conditions in the primary layer Coverage Document shall also serve for the Reinsured Excess layer and shall offer 1,1 continuous coverage in those self-insured layers. 11, Included in the Authority's payment obligations is the legal defense expense,which becomes part of the loss cost and contributes towards the primary and excess limits. B. EXCLUSIONS Exclusions of coverage are identified by each policy or Coverage Document of each coverage 1,1 ' layer. Policies may differ from each other in the number,language and underwriters intent of exclusions. Underinsured/uninsured motorist coverage is not provided to members or employees. C. MEMBERS II Current Members are identified in the WCIA Coverage Document#CT-2007 I I D. COVERAGE LIMITS IV, The Authority will pay all sums which members become legally obligated to pay,subject to all terms and conditions of the Authority's Coverage Document, up to the Authority's$15 million limit levels 11, as outlined below: Self-Insured Layer: $3 million per occurrence "" Reinsured Excess Layer $12 million per occurrence Total Limit: $15 million per occurrence,subject to the annual aggregates and sub-limits below: Above$4,000,000 per occurrence $10,000,000 annual aggregate Product Liability coverage per Member, $10,000,000 Public Official Liability annual aggregate per Member,$10,000,000 Employment Practice Liability annual aggregate per Member and a$25,000,000 annual aggregate per Member for Law Enforcement Liability arising out of 1?, it WCIA Liability Joint Protection Program Page 3 Member owned jails or holding facilities with overnight or greater length of stay for the Ili confinement of inmates. $3,000,000 per occurrence limit and$3,000,000 annual aggregate per Member applying to Terrorism. $1,000,000 per occurrence limit and$1,000,000 annual aggregate limit per Member I14 j applying for the release,discharge or backup of liquids and/or effluents from waste water and/or sanitary sewer lines owned, leased,maintained or operated by a"Member". ,11 It is understood and agreed that in the event that financial liability for an occurrence exceeds the II Reinsured Excess Layer coverage limits,or if any aggregate limit has been exhausted within the coverage term,any remaining obligation will be the sole responsibility of the applicable member and shall not be the responsibility of the Authority nor any other member. I" Coverage limits in any self-insured excess layers are limited to budgeted funds.Possible scenarios 1 resulting from frequency of losses or a severity of loss may result in the exhaustion of all Authority funds.In that event any remaining financial obligation will be the sole responsibility of the applicable member and shall not be the responsibility of the Authority.Replenishment of any self-insured layers may be made by special assessment as approved by the Board. i I It is also understood and agreed that any liability claim not within the coverage afforded in the Self- 1,1 Insured or Reinsured Excess Layers shall be the sole responsibility of the applicable member or employee against whom the claim is made and not the responsibility of the Authority nor any other III member. 11 In the event of an excess or reinsurance carrier financial failure,or the exhaustion of the Self- I Insured or Reinsured Excess Layer,the total liability of the Authority for the policy years shall remain at$3 million per occurrence. Any remaining obligation over the$3 million coverage limit is p, also the responsibility of the applicable member. The Board may authorize the purchase of new I, reinsurance or excess liability insurance or extend the self-insurance layer. 1 Liability coverage is subject to the terms,conditions and exclusions stated in the WCIA Coverage I' Document CT-2006 for the Self-Insured and Reinsured Excess Layers. . Liability coverage is also 11 subject to the terms,conditions and coverage limitations specific to the Reinsured Excess Layer 1, that may be required by the reinsurance or excess carrier. E. CLAIMS DEDUCTIBLES Ilh Claims deductible levels of$25,000,$50,000,$100,000,$250,000,$500,000 and$1,000,000 are coverage options for members with the following characteristics: 1.1 11, 1. The actuary must categorize the member in the highest total worker hour group for the projected period. 111 2. The member must be in compliance with applicable state and/or federal governmental accounting standards,including the establishment of a claims payment internal fund. 111 3. The member must have staff with authority to implement and administer the risk I management function within the entity. 1'' Members that exercise this coverage option report all claims and incidents to the Authority for /11 investigation. The Authority will periodically analyze and review the claims history of the member and distribute claims status reports. 11, The Authority retains control of claims,assignment of defense counsel and settlement authority. The member will be included in the claims decision-making process. For claims decisions that are 1 l I II, I WCIA Liability Joint Protection Program Page 4 , referred to the Executive Committee,the member involved will be invited to participate in claims settlement discussions in Executive Session. If the Authority deems that settlement is appropriate,the Authority will issue an authorization for payment to the member. The member is required to promptly pay the claimant upon receipt of the authorization. Any resulting action arising from the member's failure to pay is the sole responsibility of the member. This claims deductible program is designed to provide the member who assumes significant individual risk with a reduced annual assessment and cash flow benefits.There are no changes to the Interlocal Agreement,By-Laws or Claims Manual concerning claim and litigation control or II requirements for members that participate in a claims deductible program. II. DESCRIPTION OF SERVICES AND COST ALLOCATION A. COVERAGE ASSESSMENT BASIS Assessment cost per member is primarily based on a ratio of individual member employee worker hours to total Authority member worker hours,for the period consisting of the four quarters of the previous year,and a loss experience factor as determined by the actuary. B. AUTHORITY ADMINISTRATION The Executive Director shall administer Authority operations and be accountable to the Board in the areas of insurance purchases,claims and loss control administration,coverage determinations and new membership. C. LEGAL SERVICES The Authority Legal Counsel is appointed by the Board to provide legal assistance concerning Authority operations to the Board and Executive Director. Authority Legal Counsel is an administrative expense. D. CLAIMS COSTS Administration of the liability claims program is conducted in-house by Authority staff and is an administrative expense. Some losses are assigned by staff to an outside claims service company for resolution. The service company's fees are administrative costs. Defense of lawsuits are also a part of the program,are considered loss costs,and apply against a member's loss experience and also against coverage limits. Selection and assignment of defense counsel is the sole responsibility of the Executive Director. III. MEMBER ASSESSMENTS Each member's assessment with the Authority is due within thirty(30)days of billing. Mid-year (new)membership will be prorated against the remaining coverage year assessment, payable within thirty(30)days. I I IV. CLAIMS PROCESS The claims process is supervised by the Authority and includes development and implementation of claims procedures. Claims reports will be distributed annually to the membership. Members shall cooperate by promptly reporting all incidents,occurrences,claims and lawsuits which may result in potential liability,by participating fully in any investigation conducted by the Authority or its claims administrator,and by adhering to the claims procedures as set forth in the Authority Claims Manual. The Executive Director may settle any claim up to$100,000. Dollar authority above that level must be brought before the Executive Committee for approval. �II I's WCIA Liability Joint Protection Program Page 5 II V. DEFAULT PENALTY A failure on the part of a member to file a Notice of Appearance within the required time from service of a lawsuit against the member result in a Motion for Default entered in favor of Plaintiff. Any"terms"of the motion or judgment rendered by the courts on behalf of plaintiff shall be the sole responsibility of the defendant member,and shall not be payable with Authority funds. Appeals on the enforcement of this Section may be made as outlined in Article VI,Section 2 of the Ili Authority By-Laws(Bylaws). COVERAGE DETERMINATION jp The Executive Director shall be responsible for making all coverage determinations within the Self- Insured layer and Reinsured Excess Layers in regard to all claims or suits filed against the member in which a question of coverage and/or defense exists. An appeal process has been adopted in the By-Laws,Article VI,Section 2,to allow members tol bring before the Executive Committee any coverage decisions which they may contest. Respective requirements of each participating party are detailed as appropriate in the By-Laws. Failure to follow the stated requirements may result in a waiver of legal rights. lo, Ili VII. CO-INSURANCE If any member has other valid and collectible insurance which is written by another insurer,and such insurance is available to the member covering a loss also covered by this Joint Protection Program,other than insurance that is provided in excess of this program,the protection and excess insurance afforded bythis Joint Protection Program shall be in excess of and shall not contribute 9 with such other insurance. ii II VIII CANCELLATION OR TERMINATION OF MEMBER LIABILITY COVERAGE ° Liability coverage provided under the Joint Protection Program may be canceled by an individual member by written notification of its intent to withdraw from participation in the Interlocal Agreement I!6 pursuant to Article 20 thereto. Coverage will cease either at the next coverage expiration date after notice,or upon the effective date of the member's withdrawal from the Authority,whichever comes first. Coverage under this program may be terminated by the Authority by a majority vote of the Board present at the meeting whereby such termination is proposed. Notice of termination shall be provided to the member, in writing, not less than sixty(60)days prior to the effective date of the termination,except that, if the member fails to pay any assessment when due,this coverage may be terminated by providing, in writing,ten(10)days notice. It is understood that cancellation or termination of coverage under this program shall constitute cancellation of coverage in both the primary and excess layer. Limits,terms and conditions of coverage is restricted to those in force at time of cancellation or termination. Should any premium credit of an individual member be returned to the Authority as a result of the cancellation in any excess insurance policy,it may be retained by the Authority and applied toward any outstanding or anticipated debts of the member to the Authority. Should all the financial obligations of the member jp be met, 90%of any premium return from the excess insurance carrier for the individual member I l shall be forwarded to the member. IX MEMBERSHIP I ' III WCIA Liability Joint Protection Program Page 6 As the Interlocal allows for membership to include municipal corporations,the following is a partial listing of the Executive Committee's definition of municipal corporations: A. CITIES AND TOWNS Membership is open to cities and towns in Washington State,to be reviewed on a case by case basis and subject to current Authority underwriting guidelines. B. INTERLOCAL ENTITIES Membership is open to interlocal entities to be reviewed on a case by case basis,and subject to current Authority underwriting guidelines and the following requirements: 1. The Interlocal Entities or Municipal Corporations must provide traditional municipal services with its own staff and Board. 2. A member city must sponsor the Interlocal Entities or Municipal Corporations for WCIA membership. 3. The member city must maintain active participation in the Interlocal Entities or Municipal Corporations and be represented on the Interlocal Entities or Municipal Corporations governing board. 4. The Interlocal Entities or Municipal Corporations must support and attend risk management training sessions. 5. The overall effect of this type of Organization impact on the pool may be reviewed and periodically re-evaluated. II, 6. The Interlocal Entities or Municipal Corporations must perform to current underwriting standards. Ljpp2007 II III ail li ill Ib ICI � I Property Joint Protection Program 2007 11,1, cities .Insurance Authority :11 11 WCIA Property Joint Protection Program Page 2 li WASHINGTON CITIES INSURANCE AUTHORITY Property Joint Protection Program for the Coverage Year December 31,2006 to December 31,2007 PROPERTY COVERAGE Washington Cities Insurance Authority(WCIA)provides an optional program to its members whereby they may obtain protection for losses or damages to member owned property. A. COVERAGE LAYERS There are three layers in the Property Program: • The first layer is an Individual Member Deductible where each member has a choice of individual deductible layers for each program for all perils other than flood and earthquake. • The second layer is the WCIA Self-Insured Property Retention Layer,which covers from the members chosen deductible to$500,000 per occurrence. I I • The third layer is group purchased Property Insurance,which covers from$500,000 to a limit of $300 million per occurrence for all members combined, except for damage that is subject to a separate$100 million pool annual aggregate limit to cover all member losses as a result of a flood subject to a$50 million annual aggregate for flood in zones NV,a$100 million pool Ik annual aggregate limit to cover all member losses as a result of an earthquake,and$250,000 for unscheduled tunnels,bridges,dams,catwalks,roadways, highways,streets,sidewalks, l!, culverts,street lights and traffic signals above an individual member deductible of$500,000. PROGRAM INDIVIDUAL MEMBER WCIA SELF-INSURED, DEDUCTIBLE RETENTION LAYER Property All Perils $1,000 or$5,000 or$25,000 $500,000 Except Flood &Earthquake and certain unscheduled property listed above. II Flood $250,000 per occurrence except $0 for flood in Zone A or V 3%of values involved in loss subject to a $500,000 minimum per occurrence Earthquake 2%of values involved in a loss. $0 Subject to$100,000 minimum Builders Risk $25,000 I $0 The Board,at its discretion,may choose to self insure or purchase insurance in any of the layers., Purchased insurance policies may differ from each other in language,exclusions,conditions and underwriter's intent. Coverage among the various policies may not be continuous. � I I ' ll I!i u - �I I WCIA Property Joint Protection Program Page 3 Further, moneyavailable forSelf-Insured a b losses within WCIA Self Insured Property Retention Layer is limited to budgeted funds and a high frequency of$500,000 losses may result in the exhaustion of all WCIA funds. Replenishment of WCIA Self-Insured Property Retention Layer may be made by special assessment as approved by the Board at its discretion. The carrier(s)for the group purchased Property Insurance may change during the coverage period. It is also understood and agreed that any property loss not within the coverage definitions or terms of the Property Insurance and/or Excess Property Insurance policies shall be the sole responsibility I of the applicable member and not the responsibility of WCIA nor any other member. Within the WCIA Self-Insured Retention Layer of$500,000 maximum per occurrence,WCIA does I, not exclude the peril of terrorism. The peril of terrorism is excluded in all the insured layers,over $500,000 per occurrence subject to all other terms,conditions,exclusions and limitations found in the property insurance policy for all layers of coverage above the$500,000 per occurrence Self- !! Insured Retention Layer. I' I B. LIMITS APPLICATIONS In the event a member incurs a loss which exceeds the currently available policy limits of insurance,. sub-limits,or annual aggregate limits including partially exhausted annual aggregate limits,or if a combination of members incur losses which exceed available limits of insurance on a per occurrence or annual aggregate basis;the losses shall be paid on a pro rata basis from the proceeds of insurance currently available at the time the loss was incurred. The calculation of pro rata payment of member losses shall be determined by taking the dollar value of each members 111 loss and dividing it by the total dollar value of all members losses to determine a pro rata percentage which each members loss bears to the combined total dollar value of member losses being submitted for coverage. Each member will then be paid the lesser of the following:either the full value of their loss or the percentage that their loss bears in proportion to all members losses times the total dollar value of insurance proceeds currently available at the time of the occurrence causing the loss. C. DEDUCTIBLE APPLICATIONS In the event more than one member sustains a flood or earthquake loss from the same occurrence, that is covered by group purchased Property Insurance,the deductible shall be applied on a pro rata basis to each member suffering loss. The calculation of the pro rata deductible shall be determined by taking the dollar value of each members'loss and dividing it by the total dollar value of all members losses.This determines a pro rata percentage which each members'loss bears to the combined total'dollar value of member losses being submitted for coverage. Each member will then bear a portion of the flood and earthquake deductible in proportion to the total loss. D. DEFINITION OF OCCURRENCE The definition of "occurrence"is consistent with Self-Insured Property Retention Layer and Group Purchased Property Insurance definitions. E. COVERAGE TERMS, EXCLUSIONS,AND CONDITIONS 1. The terms,definitions, exclusions and conditions of the primary layer of group purchased Property insurance policies shall also apply to WCIA Self-Insured Property Retention Layer. The Property Program shall allow each member to fyy select property coverage for buildings,contents and inland marine. III 2. Under any circumstances WCIA's obligation to make payment to a member for property loss or damage shall be limited to no more than$500,000 per occurrence regardless of the amount or number or kinds of properties that are damaged,destroyed or affected by the occurrence. The definition of an lip it WCIA Property Joint Protection Program Page 4 "occurrence"which may give rise to a claim against WCIA Self-Insured Property Retention Layer shall be the same as the definition given in the group purchased 4 Property Insurance Policy. 1 I F. MEMBERS II Current members in the Property Program include: A Regional Coalition for HousingKirkland Renton 9 Aberdeen Lacey Richland Arlington La Conner Ridgefield Auburn Lake Forest Park Sammamish Bainbridge Island Lake Stevens Skagit 911 Battle Ground Leavenworth Shelton Benton City Long Beach Shoreline Benton County Emergency Services Longview SNOCOM/Medic 7 Bonney Lake LOTT Alliance Snohomish , Bothell Mabton SERS Burien Maple Valley SNOPAC Camas Marysville Snoqualmie Cashmere Marysville Fire District Soap Lake Centralia McCleary Spokane Valley Chehalis Medical Lake Stanwood Cheney Medina Steilacoom Chelan Mercer Island Sumner CRESA Metropolitan Park Dist.of Tacoma Thurston Regional Planning Council Clarkston Mill Creek Three Rivers Reg,Wastewater Auth ;11 Clyde Hill Milton Toppenish , Cle Elum Monroe Tukwila , Coupeville Monroe Fire District Tumwater Covington Montesano Union Gap Cowlitz-Wahkiakum COG Moses Lake University Place Des Moines Mountlake Terrace Valley Communications Eastside Public Safety Corn. Mount Vernon Valley Regional Fire Authority Edmonds Mukilteo Walla Walla Edgewood Newcastle WA Cities Insurance Authority Elma Normandy Park Warden Emergency Sery Coord Agency North Bonneville Washougal Enumclaw Northshore Utility District Water Operating Board p Fife Oak Harbor Westport 41 George Ocean Shores WHITCOM 911 , Goldendale Othello Woodinville 44 Grandview PENCOM Woodway I Grays Harbor 911 Corn Port Angeles Yakima Valley Conf.of Gov. Hoquiam Port Townsend Yarrow Point 1 Issaquah Pullman-Moscow Airport Board Zillah I Kelso Puyallup 1 Kenmore 1; II. DESCRIPTION OF SERVICES AND COST ALLOCATION ", A. COVERAGE ASSESSMENT BASIS II Assessment costs per member is based on replacement cost. B. PROPERTY SCHEDULES Each member is responsible for reporting,additions or changes to property schedules including increases in replacement values as soon as practicable to WCIA. Property not scheduled may be denied coverage in the event of loss. I � II p WCIA Property Joint Protection Program Page 5 p;i I C. WCIA ADMINISTRATION The Executive Director shall administer WCIA operations and be accountable to the Board in the areas of insurance purchases,claims and loss control administration,coverage determinations and new membership. D. LEGAL SERVICES WCIA Legal Counsel is appointed by the Board to provide legal assistance concerning WCIA operations to the Board and Executive Director. WCIA Legal Counsel is an administrative expense. E. SUBROGATION IY WCIA shall be subrogated to all legal rights to seek and recover damages for injury,theft,loss or destruction of member owned property which the member may have against any person or other entity with respect to any payment made under this Property Joint Protection Program. The member shall execute all papers required by WCIA and shall cooperate with WCIA to secure and protect WCIA's rights. WCIA shall have the exclusive right to select,retain and pay attorneys as necessary to pursue legal remedies for recovery of its subrogation interests. In case any reimbursement is obtained or recovery is made by the member or WCIA on account of any loss covered by this Property Joint Protection Program,the distribution of such reimbursement or recovery,shall be first applied in the following order: 1. Payment of legal costs and attorney fees incurred by WCIA in making the recovery. iP 2. Second,to recover the member's loss because of application of their deductible; 3. Third,to recover WCIA's payments until WCIA is fully reimbursed. li F. CLAIMS COSTS i I Administration of the property claims program is conducted in-house by WCIA staff and is an administrative expense. Some losses are assigned by staff to an outside claims service company for resolution. The service company's fees are administrative costs. III. MEMBER ASSESSMENTS Each member's assessments with WCIA is due within thirty(30)days of billing. Claims reports will be distributed annually to the membership. Mid-year(new)membership will be prorated against the remaining coverage year premium, payable within thirty(30)days. Any assessment paid is not refundable or short rated in the event of a member withdrawal from Property Joint Protection Program prior to the end of a policy year. I , IV. CLAIMS PROCESS The claims process is supervised by WCIA and includes development and implementation of claims procedures which members agree to follow. Members shall cooperate by promptly reporting all property claims,by participating fully in any investigation conducted by WCIA or its claims administrator,and by adhering to the claims procedures as set forth in the WCIA Claims Manual. The Executive Director may settle any claim within the WCIA Retention Layer. V COVERAGE DETERMINATION I i ' III I I I jl ' IIi, II II ;I WCIA Property Joint Protection Program Page 6 The Executive Director shall be responsible for making all coverage determinations within the WCIA Self-Insured Property Retention Layer in regard to all claims filed by the member in which a question of coverage exists. I Any member aggrieved by a coverage determination of the Executive Director shall follow the appeal process which has been adopted in the By-Laws,Article VI,Section 2,to allow members to, bring before the Executive Committee any coverage decisions which they may contest. Respective requirements of each participating party are detailed as appropriate in the By-Laws. Failure to follow the stated requirements may result in a waiver of legal rights. III I' VI. OTHER-INSURANCE II If any member has other valid and collectible insurance which is written by another insurer,and 'I, such insurance is available to the member covering a loss also covered by this Property Joint ;I h Protection Program,other than insurance that is provided in excess of this program,the protection I!, and excess insurance afforded by this Property Joint Protection Program shall be in excess of and' III' shall not contribute with such other insurance. I'Ii VII. CANCELLATION;OR TERMINATION OF MEMBER PROPERTY COVERAGE A member's participation and coverage in the Property Joint Protection Program may terminate or cease in one of the following ways: II A. A member withdraws from WCIA by giving its one year notice in advance of withdrawal from III WCIA's Interlocal Agreement pursuant to Article 20(a)thereto. l IIIt B. A member gives 60 days advance written notice to WCIA of its intent to cease participation in I'II the Property Joint Protection Program. I III; C. Immediate termination of coverage will occur if a member's membership in WCIA is terminated by vote of the Board of Directors as provided in Article 20(b)of the Interlocal Agreement. II 1, D. Termination of coverage will occur if a member fails to pay assessments when due as required ,! by Section 10 of the By-Laws of WCIA and Article 21 of the Interlocal Agreement. E. Coverage will cease if the Executive Committee or Board of Directors votes to cease offering III 11, coverage for property to a member as provided by Article 21(b)of the Interlocal,or if either I votes to cease offering the Property Joint Protection Program to all members. No member shall be entitled to any return of assessment or premium or"short rate"assessment or ' premium in the event of termination of coverage under the Property Joint Protection Program or, II termination of membership in WCIA. 11, Coverage under this program may be terminated by WCIA by a majority vote of the Board present II at the meeting whereby such termination is proposed,or by the property insurance company. I Notice of termination shall be provided to the member, in writing,not less than sixty(60)days prior to the effective date of the termination,except that,if the member fails to pay any assessment when 1, due,this coverage may be terminated by providing, in writing,ten(10)days notice. I, II III Limits,terms and conditions of coverage is restricted to those in force at time of cancellation or I II termination. Should any premium credit for an individual member be returned to WCIA as a result of the cancellation in any insurance policy,it will be retained by WCIA and may be applied toward ;IIII any outstanding or anticipated debts of the member to WCIA. Any assessment or premium II adjustments due to property additions during the last year of participation shall be payable after the assessment/premium audit of that year. I Ili VIII. ESTABLISHMENT OF CONTINGENCY FUND III III, III II II ,1 I' I WCIA Property Joint Protection Program Page 7 The Board may establish a contingency fund from money accumulated in excess of losses in WCIA's Retention Layer each year,to offset future property premiums,expand program enhancements,and/or build up funds for unallocated loss reserves. IIp:pp2007 I I I I�i to I li I ff lil II III ' III ''' Self-Insured Coverage Document Auto Physical Damage APDCov2007 11. WA cities Insurance Authority. y; II WCIA Auto Physical Damage Coverage Document Page 2 n I Washington Cities Insurance Authority Self-Insured Coverage Document Auto Physical Damage APDCov2007 December 31,2006 to December 31,2007 12:01 AM Pacific Standard Time This document is not an insurance policy. The Washington Cities Insurance Authority(WCIA)is not an insurance company. This document is an agreement by WCIA and its member participating in this Auto Physical Damage program to pay all covered losses subject to the limits,terms and conditions of this Agreement and any addenda attached. Various provisions in this agreement restrict coverage. Read the ntire agreement carefully to determine rights,duties and what is and is not covered. Throughout this agreement,the words"you"and"your'refer to the Member shown in the Property Joint Protection Program that is participating in the Auto Physical Damage Program. The words"we,""us"and "burn refer to WCIA. Other words and phrases that appear in quotation marks have special meaning. Refer to Section IV- Definitions. I COVERED AUTOS This Agreement covers autos and equipment,being the property of the Member or similar property of others for which the member is responsible,per Member Schedule of Values on file with WCIA. We also cover owned"autos"you acquire after the policy if you report it to us within 30 days after you acquire it. We also cover any"auto"you rent or lease if you tell us within 10 days after you rent or lease it. A. PROPERTY EXCLUDED This Agreement does not cover: jl 1. Aircraft,watercraft, mobile homes, house trailers; 2. Property while waterborne(except during ferry operations); 3. Tires or tubes unless the loss or damage is caused by fire,windstorm,theft or vandalism or is coincidental with other loss or damage covered by this agreement; 4. Portable buildings and improvements and betterments to buildings; 5. Plans,blueprints,specifications,designs, records or any similar property; 6. Property while airborne except while in due course of transit. II. PHYSICAL DAMAGE COVERAGE A. COVERAGE 1. We will pay for direct physical loss of or damage to the scheduled vehicle or its equipment under: a. Comprehensive Coverage. From any cause except: (1) The covered"auto's"collision with another object;or I I (2) The covered"auto's"overturn. ill 1 I I II i II, WCIA Auto Physical Damage Coverage Document Page'3 II I I'I b. Specified Causes of Loss Coverage. Caused by: (1) Fire,lightning or explosion; iit (2) Theft; ii (3) Windstorm, hail or earthquake; (4) Flood; it (5) Mischief or Vandalism;or II (6) The sinking,burning,collision or derailment of any conveyance transporting the covered tl "auto." c. Collision coverage. Caused by: (1) The covered"auto's"collision with another object;or (2) The covered"auto's"overturn. 2. Towing. II, We will pay for towing and labor costs incurred each time a covered"auto"is disabled as a result of a covered loss. However,towing will only be provided to the closest location that can provide the appropriate repairs. II 3. Glass Breakage-Hitting a Bird or Animal-Falling Objects or Missiles. We will pay for the following under Comprehensive Coverage: a. Glass breakage; b. "Loss"caused by hitting a bird or animal;and c. "Loss"caused by falling objects or missiles. B. EXCLUSIONS 1. We will not pay for"loss"caused by or resulting from any of the following. Such"loss"is excluded regardless of any other cause or event that contributes concurrently or in any sequence to the"loss." a. Nuclear Hazard. Ili (1) The explosion of any weapon employing atomic fission or fusion;or (2) Nuclear reaction or radiation,or radioactive contamination,however caused. b. War or Military Action. (1) War,including undeclared or civil war; (2) Warlike action by a military force,including action in hindering or defending against an actual or expected attack,by any government,sovereign or other authority using military personnel or other agents;or (3) Insurrection, rebellion, revolution,usurped power or action taken by governmental authority in hindering or defending against any of these. 2. Other Exclusions. a. We will not payfor"loss"to anyof the following: (1) Tape decks or other sound reproducing equipment unless permanently installed in,a 1 covered"auto." 11 II i4 ' WCIA Auto Physical Damage Coverage Document Page 4 (2) Tapes,records or other sound reproducing devices designed for use with sound reproducing equipment. (3) Sound receiving equipment designed for use as a citizens'band radio,two-way mobile radio or telephone or scanning monitor its antennas and other accessories, II unless permanently installed. b. We will not pay for"loss"caused by or resulting from any of the following unless caused by other"loss"that is covered by this agreement: (1) Wear and tear,freezing,mechanical or electrical breakdown. (2) Blowouts,punctures or other road damage to tires. it C. LIMIT OF COVERAGE 1. The most we will pay for"loss"in any one"accident"is the lesser of: a. The actual cash value of the damaged or stolen property as of the time of the"loss";ors b. The cost of repairing or replacing the damaged or stolen property with other property of like kind and quality. IC, 2. With respect to autos valued$25,000 or greater and if the Member's Schedule of Values on file with WCIA specifies replacement cost coverage,we will: II a. Pay for the cost of repairing the damaged or stolen property with a part or parts of like' kind and quality,without deduction for depreciation;or b. Pay for cost to replace the entire covered auto and its permanently attached equipment at the time of loss with a comparably new auto and comparably new attached equipment. D. DEDUCTIBLE For each covered"auto,"our obligation to pay for,repair,return or replace damaged or stolen property will be reduced by the applicable deductible shown in the Declarations. Any deductible shown in the Declarations does not apply to"loss"caused by fire,lightning or glass repair. III. LOSS CONDITIONS A. APPRAISAL FOR,PHYSICAL DAMAGE LOSS If you and we disagree on the amount of`loss,"either may demand an appraisal of the"loss." In this event,each party will select a competent appraiser. The two appraisers will select a competent and impartial umpire. The appraisers will state separately the actual cash value and amount of"loss." If they fail to agree,they will submit their differences to the umpire. A decision agreed to by any two will be binding. Each party will: 1. Pay its chosen appraiser;and 2. Bear the other expenses of the appraisal and umpire equally. If we submit to an appraisal,we will still retain our right to deny the claim. II B. DUTIES IN THE EVENT OF ACCIDENT, CLAIM,SUIT OR LOSS 1. In the event of"accident,"claim,"suit"or"loss,"you must give us or our authorized li representative prompt notice of the"accident"or"loss." Include: a. How,when and where the"accident"or"loss"occurred; b. The"Member's"name and address;and c. To the extent possible,the names and addresses of any injured persons and witnesses. it III ltt i II' WCIA Auto Physical Damage Coverage Document Page 5 2. Additionally,you and any other involved"Member"must: a. Assume no obligation,make no payment or incur no expense without our consent,except at the"Member's"own cost. b. Immediately send us copies of any demand, notice,summons or legal paper received concerning the claim or"suit." c. Cooperate with us in the investigation,settlement or defense of the claim or"suit." II 3. If there is"loss"to a covered"auto"or its equipment you must also do the following: a. Promptly notify the police if the covered"auto"or any of its equipment is stolen. b. Take all reasonable steps to protect the covered"auto"from further damage. Also keep a record of your expenses for consideration in the settlement of the claim. c. Permit us to inspect the covered"auto"and records proving the"loss"before its repair or disposition. d. Agree to examinations under oath at our request and give us a signed statement of your answers. C. LOSS PAYMENT-PHYSICAL DAMAGE COVERAGES At our option we may: 1. Pay for,repair or replace damaged or stolen property; 2. Return the stolen property,at our expense. We will pay for any damage that results to the "auto"from the theft;or 3. Take all or any part of the damaged or stolen property at an agreed or appraised value. li D. TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US If any person or organization to or for whom we make payment under this Agreement has rights to recover damages from another,those rights are transferred to us. That person or organization must do nothing after"accident"or"loss"to impair them. General Conditions: 1. Bankruptcy. Bankruptcy or insolvency of the"Member"will not relieve us of any obligations under this Agreement. 2. No Benefit to Bailee-Physical Damage Coverages. We will not recognize any assignment or grant any coverage for the benefit of any person or organization holding,storing or transporting property for a fee regardless of any other provision of this Agreement. 3. Other Insurance. a. For any covered"auto"you own,this Agreement provides primary coverage. For any covered"auto"you don't own,the coverage provided by this Agreement is excess over any other collectible insurance. b. When this Agreement and any other Coverage Form or insurance policy covers on the same basis,either excess or primary,we will pay only our share. Our share is the proportion that the Limit of Coverage of our Agreement bears to the total of the limits of all the Coverage Forms and insurance policies covering on the same basis. I i it WCIA Auto Physical Damage Coverage Document Page 6 4. Policy Period,Coverage Territory. '1 Under this Coverage,we cover"accidents"and"losses"occurring: a. During the policy period shown in the Declarations;and b. Within the coverage territory. The coverage territory is: a. The United States of America; b. The territories and possessions of the United States of America; c. Puerto Rico;and d. Canada. We also cover"loss"to,or"accidents"involving,a covered"auto"whole being transported between any of these places. IV. DEFINITIONS A. ACCIDENT "Accident"includes continuous or repeated exposure to the same conditions resulting in"bodily injury"or"property damage." B. AUTO "Auto"means a land motor vehicle,trailer or semi-trailer designed for travel on public roads but does not include"mobile equipment." C. BODILY INJURY "Bodily injury"means bodily injury,sickness or disease sustained by a person including death resulting from any of these. D. MEMBER "Member"means any municipal corporation participating in the Auto Physical Damage Program as identified in the Auto Physical Damage Joint Protection Program. Except with respect to the Limit of Coverage,the coverage afforded applies separately to each Member who is seeking coverage or • against whom a claim or"suit"is brought. II E. LOSS "Loss"means direct and accidental loss or damage. it F. MOBILE EQUIPMENT ' I "Mobile equipment"means any of the following types of land vehicles,including any attached machinery or equipment: 1. Bulldozers,farm machinery,forklifts and other vehicles designed for use principally off public it roads; 'h I 2. Vehicles maintained for use solely on or next to premises you own or rent; 3. Vehicles that travel on crawler treads; i I WCIA Auto Physical Damage Coverage Document Page 7, it 4. Vehicles,whether self-propelled or not, maintained primarily to provide mobility to permanently mounted: a. Power cranes,shovels, loaders,diggers or drills;or b. Road construction or resurfacing equipment such as graders,scrapers or rollers. I , 5. Vehicles not described in paragraphs 1,2,3,or 4 above that are not self-propelled and are maintained primarily to provide mobility to permanently attached equipment of the following types: a. Air compressors, pumps and generators,including spraying,welding,building cleaning, geophysical exploration, lighting and well servicing equipment;or jll b. Cherry pickers and similar devices used to raise or lower workers. II 6. Vehicles not described in paragraphs 1,,2,3 or 4 above maintained primarily for purposes other than the transportation of persons or cargo. However,self-propelled vehicles with the following types of permanently attached equipment are not"mobile equipment"but will be considered"autos": a. Equipment designed primarily for: (1) Snow removal; (2) Road maintenance,but not construction or resurfacing;or r I (3) Street cleaning; II b. Cherry pickers and similar devices mounted on automobile or truck chassis and used to raise or lower workers;and c. Air compressors,pumps and generators,including spraying,welding, building cleaning, geophysical exploration, lighting or well servicing equipment. G. PROPERTY DAMAGE "Property damage"means damage to or loss of use of tangible property. H. SCHEDULE OF VALUES "Schedule of Values"means the list on file with WCIA of a Member's Autos and their attached equipment submitted by each Member to WCIA describing each Auto to be covered by this , agreement and the Members election as to each Auto to cover its replacement or repair at either its actual cash value or its cost of replacement as selected by the Member. I. SUIT "Suit"means a civil proceeding in which damages because of"bodily injury'or"property damages" to which this coverage applies are alleged. "Suit"includes an arbitration proceeding alleging such damages to which you must submit or submit with our consent. J. TRAILER "Trailer"includes semi-trailer. Ili Apdcov2007 II, Auto Physical Damage Joint Protection Program 2007 WA t cities Insurance Authority III ' II II' I! II,I WCIA APD Joint Protection Program Page 2 Id IPA I WASHINGTON CITIES INSURANCE AUTHORITY Ill Auto Physical Damage Joint Protection Program for the IIIl Coverage Year December 31,2006 to December 31,2007 I. AUTO PHYSICAL DAMAGE COVERAGE Washington Cities Insurance Authority(WCIA)provides an optional program to its members 1 whereby they may obtain protection for losses or damages to member owned,leased or rented !'i autos. pl 11 II' A. COVERAGE LAYERS Ili IThere are two layers in the Auto Physical Damage Program: '"I 1. The first layer is an Individual Member Deductible where each member has a choice of11 11 individual deductible layers for each program. Ii II 2. The second layer is the WCIA Self-Insured Auto Physical Damage Retention Layer,which attaches from the individual deductible. III II The Board,at its discretion,may choose to self insure or purchase insurance in any of the layers.' III Purchased insurance policies may differ from each other in language,exclusions,conditions and IIII underwriter's intent. Coverage among the various policies may not be continuous. lli Further,money available for losses within WCIA Self-Insured Auto Physical Damage Retention III Layer is limited to budgeted funds and a high frequency of losses may result in the exhaustion of all 11 WCIA funds. Replenishment of WCIA Self-Insured Auto Physical Damage Retention Layer may be II made by special assessment as approved by the Board at its discretion. III It is also understood and an agreed that auto loss not within the coverage definitions or terms of 9 Y the Auto Physical Damage Insurancepolicies or Self Insured Coverage Document for Auto Physical Il Y 9 9 Y Damage shall be the sole responsibility of the applicable member and not the responsibility of 9 P Y PP P tY III WCIA nor any other member. I B. COVERAGE TERMS, EXCLUSIONS,AND CONDITIONS I' II I The terms,definitions,exclusions and conditions of the Auto Physical Damage program are outlined in the WCIA Self Insured Coverage Document for Auto Physical Damage APDCov2007. II III C. MEMBERS I I' Current members include: III Aberdeen Clarkston Kenmore 1 IIII Arlington Cle Elum III Auburn Clyde Hill Kirkland Bainbridge Island Covington Lacey 11 II Battle Ground Coupeville La Conner Benton City Cowlitz-Wahkiakum Council of Gov. Lake Forest Park II Benton County Emergency Services CRESA Lake Stevens I Bonney Lake Des Moines Leavenworth , Bothell Edgewood Long Beach " Burien Edmonds Longview II Camas Elma LOTT Alliance 1 II Cashmere Enumclaw Mabton Centralia Fife Maple Valley Chehalis Goldendale Marysville Chelan Issaquah Marysville Fire District liII Cheney Kelso McCleary 111 II II Ih, II, 1II III I 1 WCIA APD Joint Protection Program Page 3 I i Medical Lake Olympia Spokane Valley Medina Othello Stanwood Mercer Island Port Angeles Sumner II Metropolitan Park District of Tacoma Port Townsend Steilacoom Mill Creek Pullman-Moscow Airport Board Three Rivers Reg.Wastewater Authority Milton Puyallup Toppenish Monroe Renton Tukwila Monroe Fire District Richland Tumwater Montesano Ridgefield Union Gap Moses Lake Sammamish University Place Mountlake Terrace SERS Valley Regional Fire Authority Mount Vernon Shelton Walla Walla Mukilteo Shoreline Washougal Newcastle Skagit 911 Westport 1,1 Normandy Park Snohomish Woodinville !I' North Bonneville SNOCOM Woodway Northshore Utility District SNOPAC Yarrow Point ii Oak Harbor Snoqualmie Zillah Ocean Shores Soap Lake I' III II. DESCRIPTION OF SERVICES AND COST ALLOCATION A. COVERAGE ASSESSMENT BASIS Assessment costs per member is based on scheduled values of member owned autos. B. AUTOMOBILE SCHEDULES Each member is responsible for reporting any changes in automobile values as soon as practicable II'+ to WCIA. C. WCIA ADMINISTRATION The Executive Director shall administer WCIA operations and be accountable to the Board in the areas of insurance purchases,claims and loss control administration,coverage determinations and Ill new membership. D. LEGAL SERVICES I WCIA Legal Counsel is appointed by the Board to provide legal assistance concerning WCIA operations to the Board and Executive Director. WCIA Legal Counsel is an administrative expense. Il I E. SUBROGATION Ali I WCIA shall be subrogated to all legal rights to seek and recover damages for injury,theft,loss or destruction of member owned Autos which the member may have against any person or other III, entity with respect to any payment made under this Auto Physical Damage Joint Protection Program. The member shall execute all papers required by WCIA and shall cooperate with WCIA to secure and protect WCIA's rights. WCIA shall have the exclusive right to select,retain and pay attorneys as necessary to pursue legal remedies for recovery of its subrogation interests. In case, any reimbursement is obtained or recovery is made by the member or WCIA on account of any loss covered by this Auto Physical Damage Joint Protection Program,the distribution of such li reimbursement or recovery,shall be first applied in the following order: 1. Payment of legal costs and attorney fees incurred by WCIA in making the recovery. 2. Second,to recover the member's loss because of application of their deductible; 3. Third,to recover WCIA's payments until WCIA is fully reimbursed. j11 I Il' ill I 1" WCIA APD Joint Protection Program Page 4, F. CLAIMS COSTS Administration of the Auto Physical Damage claims program is conducted in-house by WCIA staff and is an administrative expense. Some losses are assigned by staff to an outside claims service company for resolution. The service company's fees are administrative costs. i 1 Ijl 11 III. MEMBER ASSESSMENTS Each member's assessments with WCIA is due within thirty(30)days of billing. Claims reports will be distributed annually to the membership. Mid-year(new)membership will be prorated against the remaining coverage year premium, payable within thirty(30)days. Any assessment paid is not refundable or short rated in the event of a member withdrawal from Auto Physical Damage Joint II, Protection Program prior to the end of a policy year. 1111 IV. CLAIMS PROCESS Ili The claims process is supervised by WCIA and includes development and implementation of claims procedures which members agree to follow. 111 Members shall cooperate by promptly reporting all Auto Physical Damage claims,by participating fully in any investigation conducted by WCIA or its claims administrator,and by adhering to the claims procedures as set forth in the WCIA Claims Manual. The Executive Director may settle any II claim within the WCIA Retention Layer. I!I I V. COVERAGE DETERMINATION Ili The Executive Director shall be responsible for making all coverage determinations within the WCIA Self-Insured Auto Physical Damage Retention Layer in regard to all claims filed by the member in 1" which a question of coverage exists. II, � Any member aggrieved by a coverage determination of the Executive Director shall follow the appeal process which has been adopted in the By-Laws,Article VI,Section 2,to allow members to bring before the Executive Committee any coverage decisions which they may contest. Respective requirements of each participating party are detailed as appropriate in the By-Laws. Failure to 1111 follow the stated requirements may result in a waiver of legal rights. 1,1 VI. OTHER-INSURANCE 111 If any member has other valid and collectible insurance which is written by another insurer, and such insurance is available to the member covering a loss also covered by this Auto Physical Damage Joint Protection Program,other than insurance that is provided in excess of this program, the protection and excess insurance afforded by this Auto Physical Damage Joint Protection 111 Program shall be in excess of and shall not contribute with such other insurance. 11 VII. CANCELLATION OR TERMINATION OF MEMBER AUTO PHYSICAL DAMAGE COVERAGE A member's participation and coverage in the Auto Physical Damage Joint Protection Program may terminate or cease in one of the following ways: A. A member withdraws from WCIA by giving its one year notice in advance of withdrawal from WCIA's Interlocal Agreement pursuant to Article 20(a)thereto. 1 B. A member gives 60 days advance written notice to WCIA of its intent to cease participation in 1 the Auto Physical Damage Joint Protection Program. l � l; I li' I'' I 1', I WCIA APD Joint Protection Program Page 5 C. Immediate termination of coverage will occur if a member's membership in WCIA is terminated by vote of the Board of Directors as provided in Article 20(b)of the Interlocal Agreement. D. Termination of coverage will occur if a member fails to pay assessments when due as required II by Section 10 of the By-Laws of WCIA and Article 21 of the Interlocal Agreement. E. Coverage will cease if the Executive Committee or Board of Directors votes to cease offering j coverage for Auto Physical Damage to a member as provided by Article 21(b)of the Interlocal, Ii or if either votes to cease offering the Auto Physical Damage Joint Protection Program to all members. No member shall be entitled to any return of assessment or premium or"short rate"assessment or premium in the event of termination of coverage under the Auto Physical Damage Joint Protection Program or termination of membership in WCIA. Coverage under this program may be terminated by WCIA by a majority vote of the Board present at the meeting whereby such termination is proposed,or by the Auto Physical Damage insurance DIY company. Notice of termination shall be provided to the member,in writing,not less than sixty(60)' days prior to the effective date of the termination,except that, if the member fails to pay any assessment when due,this coverage may be terminated by providing,in writing,ten(10)days jl notice. I � Ili It is understood that cancellation or termination of coverage under this program shall constitute cancellation of coverage in all WCIA self-insured and group insured programs. Limits,terms and conditions of coverage is restricted to those in force at time of cancellation or termination. Should any premium credit for an individual member be returned to WCIA as a result of the cancellation in any insurance policy, it will be retained by WCIA and may be applied toward any outstanding or anticipated debts of the member to WCIA. Any assessment or premium adjustments due to property additions during the last year of participation shall be payable after the ji assessment/premium audit of that year. I VIII. ESTABLISHMENT OF CONTINGENCY FUND jll The Board may establish a contingency fund from money accumulated in excess of losses in WCIA's Retention Layer each year,to offset future Auto Physical Damage premiums,expand o program enhancements,and/or build up funds for unallocated loss reserves. hill Ajpp2007 III titi i u, li I it 1I! 1,1 II' o j I!' I o� I