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HomeMy WebLinkAboutLiability COMMERCIAL GENERAL LIABILITY; COVERAGE PART SUPPLEMENTAL DECLARATIONS These Supplemental Declarations form a part of the policy number 3XZ12057001 General Aggregate Limit ( other that Products/Completed Operations) Products/Completed Operations Aggregate Limit Personal and Advertising injury Limit Each Occurence Limit 5,000,000 !NCLUDED $ INCLUDED $ 5,000,000 Fire Damage Limit $ 50 000 any one fire Medical Expense Limit $ 10,000 BUSINESS DESCRIPTION AND LOCATION OF PREMISES Form of business: [] Individual [] Joint Venture [] Partnership [] Organization (other than Partnership or Joint Venture) Business Description: Governmental Subdivision Location of alt premises you own, rent or occupy: Per Schedule On File With Company PREMIUM any one person ..- 3lassification Code No. *Premium Basis I Kate Aavance Premium Pr/Co All Other Pr/Co All Other Government Entity 44102 Included Included Included Included Included Totals: Included Included FORMS AND ENDORSEMENTS (other than applicable forms and endorsements shown elsewhere in the policy) ~-orms and enaorsements applying to tins L;overage war[ and made par~ et this policy at time et ~ssue: ReferTo ZC23941a (1-99) * (a) Area, (c) Total Cost, (m) Admission, (p) Payroll, (s) Gross Sales, (u) Units~, (o) Other THIS SUPPLEMENTAL DECLARATIONS AND THE COMMON POLICY DECLARATIONS, TOGETHER WITH THE COMMON POLICY CONDITIONS, COVERAGE FORM(S) AND ENDORSEMENTS COMPLI=TE THE ABOVE NUMBERED POLICY. LB 25356 9-99 PUBLIC ENTITY GENERAL LIABILITY COVERAGE FORM Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and what is and is not covered. Throughout this policy, the words "you", and "your" and "Named Insured" refer to the entity identified as the "Named insured" in the Declarations. The words "Insured" or "lnsurads" refer to any person or organization qualifying as an "Insured" under SECTION II - WHO IS AN iNSURED',. The words "we", "us", "our" and "Company" refer to the Company stated in the Declarations as providing this insurance. I , Other words and phrases that appear in quotation marks have special meanings. Refer to SECTION V - DEFINITIONS and other provisions of this policy for such meanings. SECTION I -- COVERAGES COVERAGE Ac BODILY INJURY AND PROPERTY DAMAGE LIABILITY 1. Insuring Agreement a. 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. We will have the right and duty to defend the insured against any "suit" seeking those damages even if the allegations of the suit are groundless, false or fraudulent. However, we will have no duty to defend the insured against any "suit" seeking damages for "bodily injury" or "property damage" to which this insurance does not apply. 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 SECTION III- LIMITS OF INSURANCE; and (2) Our right and duty to defend end when we have used up the applicable limit of insurance in the payment of judgments or settlements under Coverages A or B or medical under Coverage C. No other obligation or liability to pay sums or perform acts or services is covered unless explicitly provided for under SUPPLEMENTARY PAYMENTS -- COVERAGES A AND B. LB 25471 (10/99) b. 'This insurance applies to "bodily injury" and '"property damage" only if: I(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. c. 'Damages becaUse of "bodily injury" include idamages claimed by any person or !organization for care, loss of services or 'death resulting at any time from the "bodily ;injury". ExClusions a. Expected orlntended Injury ~"Bodily injury" or "property damage" iexpected or intended from the standpoint of 'the insured. This exclusion does not apply 'to "bodily injury" resulting from the use of ~reasonable force to protect persons or ~ property. b. Contractual Liability "Bodily 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) That the insured would have in the absence of the contract or agreement; or 1 of 15 : Includes copyrighted material of insurance Services O~ce, Inc., with its permission (2) 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. Solely for the purposes of liability assumed in an "insured contract", reasonable attorney fees and necessary litigation expenses incurred by or for a party other than an insured are deemed to be damages because of "bodily injury" or "property damage", provided: (a) Liability to such party for, or for the cost of, that party's defense has also been assumed in the same "insured contract"; and (b) Such attorney fees and litigation expenses are for defense of that party against a civil or alternative dispute resolution proceeding in which damages to which this insurance applies are alleged. Liquor Liability "Bodily injury" or "property damage" for which any insured may be held liable by reason of: (1) Causing or contributing to the intoxication of any person; (2) The furnishing of alcoholic beverages to a person under the legal drinking age or under the influence of alcohol; or (3) Any statute, ordinance or regulation relating to the sale, gift, distribution or use of alcoholic beverages. This exclusion applies only if you are in the business of manufacturing, distributing, selling, serving or furnishing alcoholic beverages. Workers Compensation and Similar Laws Any obligation of the insured under a workers compensation, disability benefits or unemployment compensation law or any similar law. Employer's Liability "Bodily injury" to: (1) An employee of the insured arising out of and in the course of employment by the insured; or (2) Any volunteer firemen or policemen arising out of and in the course of their : duties for any insured; or (3) The spouse, child, parent, brother or sister of that employee as a consequence of paragraph (1) and (2) above. This exclusion applies: i(1) Whether the insured may be liable as an ,~ employer or in any other capacity; and (2) To any obligation to share damages with or repay someone else who must pay damages because of the "bodily injury". This exclusion does not apply to liability '~assumed by the insured under an "insured 'contract". Pollution '(1} "Bodily injury" or "property damage" arising out of the actual, alleged or threatened discharge, dispersal, seepage, migration, release or escape Of "pollutants": (a) At or from any premises, site or location which is or was at any time owned or occupied by, or rented or leased to, any insured; (b) At or from any premises, site or location which is or was at any time used by or for any insured or others for the handling, storage, disposal, processing or treatment of waste; (c) Which are or were at any time transported, handled, stored, treated, disposed of, or processed as waste by or for any insured or any person or organization for whom you may be legally responsible; or (d) At or from any premises, site or location on which any insured or any contractors or subcontractors working directly or indirectly on any insured's behalf are performing operations: (i) If the "pollutants" are brought on or to the premises, site or location in connection with such operations by such insured, contractor or subcontractor; or LB 25471 (10/99) 2 of 15 Includes copyrighted material of Insurance Services Office, Inc., with its permission (ii) If the operations are to test for, monitor, clean up, remove, contain, treat, detoxif7 or neutralize, or in any way respond to, or assess the effects of "pollutants". Subparagraph (d)(i) does not apply to "bodily injury" or "property damage" arising out of the escape of fuels, lubricants or other operating fluids which are needed to perform the normal electrical, hydraulic or mechanical functions necessary for the operation of "mobile equipment" or its parts, if such fuels, lubricants or other operating fluids escape from a vehicle part designed to hold, store or receive them. This exception does not apply if the fuels, lubricants or other operating fluids are intentionally discharged, dispersed or released, or if such fuels, lubricants or other operating fluids are brought on or to the premises, site or location with the intent to be discharged, dispersed or released as part of the operations being performed by such insured, contractor or subcontractor. Subparagraphs (a) and (d)(i) do not apply to "bodily injury" or "property damage" arising out of heat, smoke or fumes from a "hostile fire". As used in this exclusion, a "hostile fire" means one that becomes uncontrollable or breaks out from where it was intended. (2) Any loss, cost or expense arising out of any: (a} Request, demand or order that any insured or others test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of "pollutants"; or (b) Claim or suit by or on behalf of a governmental authority for damages because of testing for, monitoring, cleaning up, removing, containing, treating, detoxifying or neutralizing, or in any way responding to, or assessing the effects of "pollutants". go "Pollutants" means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned or reclaimed. ~,ircraft, Auto or Watercraft '~Bodily injury" or "property damage" arising out of the ownership, maintenance, use or ~ntrustment to others of any aircraft, "auto" ~r watercraft owned or operated by or rented or loaned to any insured. Use includes ~peration and "loading or unloading". This exclusion does not apply to: ~1) A watercraft while ashore or on ~ premises you own or rent; i2) A watercraft do not own that is: you (a) LeSs than 26 feet long; and (b) Not being used to carry persons or property for a charge; (3) Parking an "auto" on, or on the ways next to, premises you own or rent, provided the "auto" is not owned by or rented or loaned to any insured; (4) Liability assumed under any "insured contract" for the ownership, maintenance or use of aircraft or watercraft; or (5) "Bodily injury" or "property damage" arising out of the operation of any of the equipment listed in paragraphs f. (2) or f. (3) of the definition of "mobile equipment". IMobile Equipment ~,"Bodily injury" or "property damage" arising out of: i(1) The transportation of "mobile equipment" by an "auto" owned or operated by or rented or loaned to any insured; or '(2) The use of "mobile equipment" in, or while in practice or preparation for a prearranged racing, speed or demolition contest or in any stunting activity. ~ War '~"Bodily injury" or "property damage" due to "war, whether or not declared, or any act or LB 25471 (10/99) 3 of 15 includes copyrighted material of Insurance Services Office, ice,, with its permission condition incident to war. War includes civil war, insurrection, rebellion or revolution. This exclusion applies only to liability assumed under a contract or agreement. Damage to Property "Property damage" to: (1) Property you own, rent or occupy; (2) Premises you sell, give away or abandon, if the "property damage" arises out of any part of those premises; (3) Property loaned to you; (4) Personal property in the care, custody or control of the insured; (5) That particular part of real property on which you or any contractors or subcontractors working directly or indirectly on your behalf are performing operations, if the "property damage" arises out of those operations; or (6) That particular part of any property that must be restored, repaired or replaced because "your work" was incorrectly performed on it. Paragraph (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 (6) of this exclusion does not apply to "property damage" included in the "products-completed operations hazard". Damage to Your Product "Property damage" to "your product" arising out of it or any part of it. Damage to Your Work "Property damage" to "your work" arising out of it or any part of it and included in the "products-completed operations hazard". This exclusion does not apply if the damaged work or the work out of which the damage arises was performed on your behalf by a subcontractor. LB 25471 (10199) 4of15 ,Damage to Impaired Property or Property ~Not Physically Injured 'iProperty 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 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. ~Recall of Products, Work or Impaired ,Property ,Damages claimed for any loss, cost or expense incurred by you or others for the 'loss of use, withdrawal, recall, inspection, ~repair, replacement, adjustment, removal or 'disposal of: i(1) "Your product"; (2) "Your works"; or '(3) "impaired property"; if such product, work, or property is iwithdrawn or recalled from the market or 'from use by any person or organization because of a known or suspected defect, 'deficiency, inadequacy or dangerous condition in it. !Failure to Supply I"BOdilY injury" or "property damage'' arising 'out of the failure of any insured to !adequately supply gas, oil, water, electricity ~or steam by any utility, whether owned or not ' by any insured. ~,Except for those insureds generating their 'own electric power, this exclusion does not !apPly if the failure results from the sudden and accidental injury to tang'ble property "owned or used by any insured to procure, ~produce, process or transmit the gas, oil, :i water, electricity or steam. ' Employment Related Practices ',"Bodily injury" to: ' (1) A person arising out of any: (a) Refusal to employ that person; Includes copyrighted material of Insurance Services O~ce, Inc., with its permission (b) Termination of that person's employment; or (c) Employment-related practices, policies, acts or omissions, such as coercion, demotion, evaluation, reassignment, discipline, defamation, harassment, hu- miliation, or discrimination directed at that person; or (2) The spouse, child, parent, brother or sister of that person as a consequence of "bodily injury" to that person at whom any of the employment-related practices described in paragraphs (a), (b), or (c) above is directed. This exclusion applies: (1) Whether the insured may be liable as an employer or in any other capacity; and (2) To any obligation to share damages with or repay someone else who must pay damages because of the injury. q, Law Enforcement Activities "Bodily injury" or "property damage" arising out of any act or omission resulting from law enforcement activities of your police department, or any of your other law enforcement agencies, including their agents, volunteers and employees. r. Hospital or Nursing Home Premises "Bodily injury" or "property damage" arising out of the ownership, maintenance or use of any premises or portion of any premises used as a hospital or nursing home. Exclusions c. through r. do not apply to damage by fire to premises rented to you. A separate limit of insurance applies to this coverage as described in SECTION III -- LIMITS OF INSURANCE. COVERAGE B. PERSONAL AND ADVERTISING INJURY LIABILITY 1. Insuring Agreement a. We will pay those sums that the insured becomes legally obligated to pay as damages because of "personal injury" or "advertising injury" to which this insurance applies. We will have the right and duty to defend the insured against any "suit" seeking those damages. However, we will have no LB 25471 (10/99) duty to defend the insured against any "suit" Seeking damages for "personal injury" or "advertising injury" to which this insurance (~oes not apply. We may, at our discretion, investigate any "occurrence" or offense and ~ettle any claim or "suit" that may result. But: {1) The amount we will pay for damages is limited as described in SECTION III- LIMITS OF INSURANCE; and (2) Our right and duty to defend will end when we have used up the applicable limit of insurance in the payment of judgments or settlements under Coverages A or B or medical expenses under Coverage C. ~1o other obligation or liability to pay sums or 3erform acts or services is covered unless :explicitly provided for under !SUPPLEMENTARY PAYMENTS -- ~COVERAGES A AND B. b. 'This insurance applies to: (1) "Personal injury" caused by an offense arising out of your business, excluding advertising, publishing, broadcasting or telecasting done by or for you; and ~(2) "Advertising injury" caused by an offense committed in the course of advertising your goods, products or services; 'but only if the offense was committed in the , coverage temtory dunng the policy period. Exclusions This insurance does not apply to: a. ',"Personal injury" or "advertising injury": ('1) Arising out of 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 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; or (4) For which the insured has assumed liability in a contract or agreement. This exclusion does not apply to liability for 5 of 15 Includes copyrighted material of Insurance Services Office, Inc., with its permission damages that the insured would have in the absence of the contract or agreement; or ($) Arising out of the actual, alleged or threatened discharge, dispersal, seepage, migration, release or escape of pollutants at any time. b. "Advertising injury" arising out of: (1) Breach of contract, other than misappropriation of advertising ideas under an implied contract; (2) The failure of goods, products or services to conform with advertised quality or performance; ($) The wrong description of the price of goods, products or services; or (4) An offense committed by an insured whose business is advertising, broadcasting, publishing or telecasting. c. Any loss, cost or expense arising out of any: (1) Request, demand or order that any insured or others test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of pollutants; or (2) Claim or suit by or on behalf of a governmental authority for damages because of testing for, monitoring, cleaning up, removing, containing, treating, detoxifying or neutralizing, or in any way responding to, or assessing the effects of pollutants. Pollutants means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned or reclaimed. d. "Personal Injury" to: (1) A person arising out of any: (a) Refusal to employ that person; (b) Termination of that person's employment; or (c) Employment-related practices, policies, acts or omissions, such as coercion, demotion, evaluation, reassignment, discipline, defamation, harassment, humiliation, LB 25471 (10/99) 6 of 15 or discrimination directed at that person; or (2) The spouse, child, parent, brother or sister of that person as a consequence of "personal injury" to that person at whom any of the employment-related practices described in paragraphs (a), (b), or (c) above is directed. This exclusion applies: (1) Whether the insured may be liable as an employer or in any other capacity; and (2) To any obligation to share damages with .: or repay someone else who must pay ~ damages because of the injury. e. "Personal injury" or "advertising injury" ',arising out of any act or omission resulting from law enforcement activities of your police department, or any of your other law enforcement agencies, including their !agents, volunteers and employees. f. "Personal injury" or "advertising injury" :.arising out of the ownership, maintenance or use of any premises or portion of the ipremises used as a police department, law 'enforcement department, including jails, 'detention cells and/or holding facilities by the insured. g. '"Personal injury" arising out of the providing or failure to provide professional health care ' services. 'This exclusion does not apply to "personal .injury" arising out of the emergency health care services of the paramedics or :.emergency medical technicians qualifying as ' an insured under this policy. h. "Personalinjury" to: ~(1) Any employee or volunteer firemen or policemen arising out of and in the course of their duties by the insured; or (2) The spouse, child, parent, brother or sister of that employee as a ~ consequence of paragraph (1) above. COVERAGE C. MEDICAL PAYMENTS t. InsUring Agreement a. ' We will pay medical expenses as described below for "bodily injury" caused by an accident: (1) On premises you own or rent; includes copyrighted material of Insurance Services Office, Inc,, with its permission (2) On ways next to premises you own or rent; or (3) Because ofyour operations; /"--'. provided that: - (1) The accident takes place in the "coverage territory" and during the policy period; (2) The expenses ara incurred and raported to us within one year of date of the accident; and (3) The injurad person submits to examination, at our expense, by physicians of our choice as often as we reasonably require. b. We will make these payments regardless of fault. These payments will not exceed the applicable limit 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. ~,--- .. 2. Exclusions , _ We will not pay expenses for "bodily injury": a. To any insured. b. To a person hired to do work for or on behalf of any insured or a tenant of any insured. c. To a person injured on that part of premises you own or rent that the person normally occupies. d. To a person, whether or not an employee of any insured, if benefits for the "bodily injury" are payable or must be provided under a workers' compensation or disability benefits law or a similar law. e. To a person injured while taking part in athletics. f. Included within the "products-completed operations hazard". g. Excluded under Coverage A or B. h. Due to war whether or not declared, or any act or condition incident to war. War includes civil war, insurrection, rebellion or revolution. i. To any inmate, patient or prisoner who is ibeing treated, cared for, detained or imprisoned in any of the facilities owned or operated by or for any insured. SUPPLEMENTARY PAYMENTS -- COVER-AGES A AND B We will pay with respect to any claim we investigate or settle, or any "suit" against an insured we defend: 1. All expenses we incur. 2. Up 'to $250 for cost of bail bonds required because of accidents or traffic law violations arising out of the use of any vehicle to which the Bodily Injury Liability Coverage applies. We do not have to furnish these bonds. 3. The~ cost of bonds to release attachments, but only for bond amounts within the applicable limit of insurance. We do not have to furnish these bon~ls. 4. All ~easonabie expenses incurred by the insured at o.'ur request to assist us in the investigation or defense of the claim or "suit", including actual Ios~ of earnings up to $250 a day because of time off work. 5. All (~osts taxed against the insured in the "suit". 6. Pre-judgment interest awarded against the insurad on that part of the judgment we pay. If we make an offer to pay the applicable limit of insdrance, we will not pay any pre-judgment interest based on that period of time after the offe~'. 7. All Interest on the full amount of any judgment that' accrues after entry of the judgment and before we have paid, offered to pay, or dep~osited in court the part of the judgment that is within the applicable limit of insurance. These payments will not reduce the limits of insurance. If we defend an insured against a "suit" and an indemni;tee of the insured is also named as a party to the "suit", we will defend that indemnitee if all of the following conditions are met: a. The "suit" against the indemnitee seeks ,damages for which the insured has assumed the liability of the indemnitee in a contract or iagreement that is an "insured contract"; b. This insurance applies to such liability ~assumed by the insured LB 25471 (10/99) 7 of 15 Includes copyrighted material of Insurance Services OffiCe, Inc., with its permission c. The obligation to defend, or the cost of the defense of, that indemnitee, has also been assumed by the insured in the same "insured contract"; d. The allegations in the "suit" and the information we know about the "occurrence" are such that no conflict appears to exist between the interests of the insured and the interests of the indemnitee; e. The indemnitee and the insured ask us to conduct and control the defense of that indemnitee against such "suit" and agree that we can assign the same counsel to defend the insured and the indemnitee; and f. The indemnitee: (1) Agrees in writing to: (a) Cooperate with us in the investigation, settlement or defense of the "suit"; (b) Immediately send us copies of any demands, notices, summonses or legal papers received in connection with the "suif'; (c) Notify any other insurer whose coverage is available to the indemnitee; and (d) cooperate with us with respect to coordinating other applicable insurance available to the indemnitee; and (2) Provides us with written authorization to (a) Obtain records and other information related to the "suit"; and (b) Conduct and control the defense of the indemnitee in such "suit". So long as the above conditions are met, attorneys fees incurred by us in the defense of that indemnitee, necessary litigation expenses incurred by us and necessary litigation expenses incurred by the indemnitee at our request will be paid as Supplementary Payments, Notwithstanding the provisions of paragraph 2.b.(2) of COVERAGE A -- BODILY INJURY AND PROPERTY DAMAGE LIABILITY (Section I -- Coverages), such payments will not be deemed to be damages for "bodily injury" and "property damage" and will not reduce the limits of insurance. Our Obligation to defend an insured's indemnitee and to pay for attorneys fees and necessary litigation expenses as Supplementary Payments ends when: a. We have used up the applicable limit of insurance in the payment of judgments or ~ettlements; or b. The conditions set forth above, or the terms bf the agreement described in paragraph f. ~bove, are no longer met. SECTION II--WHO IS AN INSURED 1. The; term insured as used herein means the entity stated in the Declarations as the Named insured and except as excluded by endorsement to this policy. a. A governmental agency or subdivision, department, municipal body, board or commission, or not-for-profit corporation Which is owned and controlled by you; b. ~An individual while acting in the capacity as 'a director, officer, trustee, employee or staff member but solely while acting within the scope of their employment to you; c. 'A volunteer, but solely while acting within the scope of such duties and at your direction; d. 'A paramedic, emergency medical technician or visiting nurse, but solely while acting ~within the course and scope of your employment or while acting as your volunteer and at your direction while providing emergency or home health care services; e. An elected or appointed official or a member !of any board or commission or agency of 'yours, but solely while acting within the scope of their duties as such; f. A partnership or joint venture, including a mutual assistance pact, joint powers agreement or similar arrangement, but only with respect to the conduct of your business and only to the extent of your participation or interest; g. 911 dispatchers, but solely while acting within the scope of their employment by you. However, except for the activities of a paramedic or emergency medical technician, no employee will be considered an insured for: LB 2547t (10/99) 8of15 Includes copyrighted material of nsurance Services Office, Inc., with its permission (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. (2) Any claim arising out of providing or failing to provide professional health care services. 2. 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 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. "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. 3. Any organization you newly acquire or form, other than a partnership or joint venture, and over which you maintain ownership or majority interest will qualify as a Named Insured if there is no other similar insurance available to that organization. However: a. Coverage under this provision is afforded only until the 90th day after you acquire or form the organization or, the end of the policy period, whichever is earlier; b. Coverage A does not apply to "bodily injury" or "property damage" that occurred before you acquired or formed the organization; and c. Coverage B does not apply to "personal injury" or "advertising injury" arising out of an offense committed before you acquired or formed the organization. No person or organization is an insured with respect to the conduct of any current or past partnership or joint venture that is not shown as a Named Insured in the Declarations. LB 25471 (10/99) SECTION III -- LIMITS OF INSURANCE 1. The Limits of Insurance shown in the Declarations and the rules below fix the most we will p~ay regardless of the number of: a. Insureds; b. Claims or"suits" brought; or c. Persons or organizations making claims or bringing "suits". 2. The General Aggregate Limit is the most we will pay for the sum of: a. Medical expenses under Coverage C; b. Damages under Coverage A, except damages because of "bodily injury" or "property damage" included in the "products- ?mpleted operations hazard"; and c. Damages under Coverage B. 3. The~,Products-Completed Operations Aggregate Limit is the most we will pay under Coverage A for damages because of "bodily injury" and "property damage" included in the "products- completed operations hazard". 4. Subject to 2. above, the Personal and Advertising Injury Limit is the most we will pay undbr Coverage B for the sum of all damages because of all "personal injury" and all "ad~,ertising injury" sustained by any one person or olrganization. 5. Subject to 2. or 3. above, whichever applies, the Each Occurrence Limit is the most we will pay for ihe sum of: a. ',Damages under Coverage A; and b. Medical expenses under Coverage C because of all "bodily injury" and "property dar~age" arising out of any one "occurrence". 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. Th~ limits of this coverage part apply separately to ~ach consecutive annual period and to any remaining period of less than 12 months, starting with the beginning of the policy per[od shown in the Declarations, unless the policy period is 9of15 Includes copyrighted material of nsurance Services Off!ce, Inc., with its permission extended after issuance for an additional period of less than 12 months. In that case, the additional period will be deemed part of the preceding period for purposes of determining the Limits of Insurance. SECTION IV -- PUBLIC ENTITY GENERAL LIABILITY CONDITIONS 1. Duties In The Event Of Occurrence, Offense, Claim Or Suit a. You must see to it that we are notified as soon as practicable of an "occurrence" or an offense that 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 a claim is made or "suit" is brought against any insured, you must: (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) Cooperate with us in the investigation or settlement of the claim or defense against the "suit"; and (4) Assist us, upon our request, in the enforcement of any right against any person or organization that may be liable to the insured because of injury or damage to which this insurance may also apply. d. 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. e. Notice given by or on behalf of the insured, Or written notice by or on behalf of the injured person or any other claimant, to any agent of ours in New York State, with particulars sufficient to identify the insured, ishall be considered to be notice to us. 2. Legal Action Against Us No ~erson or organization has a right under this Coverage Part: a. 3'0 join us as a party or otherwise bring us into a "suit" asking for damages from an iinsured; or b. To sue us under this Coverage Part 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 against an insured obtained .after an actual trial; but we will not be liable for damages that are not payable under the 'terms of this Coverage Part or that are in excess of the applicable limit of insurance. An agreed settlement means a settlement and release of liability signed by us, the insured and the claimant or the claimant's ilegal representative. 3. oth'er Insurance If other valid and collectible insurance is available to the insured for a loss we cover under Coverage A or B of this Coverage Part, our obligations are limited as follows: a. ',Primary Insurance This insurance is primary except when b. i 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 on or any other basis: (1) That is Fire, Extended Coverage, BuildeCs 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 aircraft, "autos" or watercraft to LB 25471 (10/99) 10 of 15 includes copyrighted material of Insurance Services Office, inc., with its permission the extent not subject to Exclusion h. of Coverage A (Section I). When this insurance is excess, we will have no duty under Coverage A or B to defend the insured against any "suit" if any other insurer has a duty to defend the insured against that "suit". If no other insurer defends, we will undertake to do so, but we will be entitled to the insured's rights against all those other insurers. When this insurance is excess over other insurance, we will pay only our share of the amount of the loss, if any, that exceeds the sum of: (1) 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. We will share the remaining loss, if any, with any other insurance that is not described in this Excess Insurance provision and was not bought specifically to apply in excess of the Limits of Insurance shown in the Declarations of this Coverage Part. c. Method of Sharing If 811 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. 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 insurance to the total applicable limits of insurance of all insurers. 4, Bankruptcy or Insolvency The insolvency or bankruptcy of the Named Insured or the Named Insured's estate, shall not relieve us from liability for the payment of damages for injury sustained or loss occasioned within the coverage of this policy. 5, Premium Audit a. We will compute all premiums for this Coverage Part in accordance with our rules and rates. LB 25471 (10/99) b. If the premium shown in this Coverage Part il) Indicated as advance premium it 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 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. (2) Indicated as non-adjustable, no audit will I be necessary. We reserve the right ~ however to inspect the insured's records. c. The first Named Insured must keep records of the information we need for premium .computation, and send us copies at such times as we may request. RePresentations By accepting this policy, you agree: a. The statements in the Declarations are accurate and complete; b. ;Those statements are based upon ~representations you made to us; and c. 'We have issued this policy in reliance upon your representations. Separation Of Insureds Except with respect to the Limits of insurance, and any rights or duties specifically assigned in this Coverage Part to the first Named Insured, this insurance applies: a. ~As if each Named Insured were the only Named Insured; and b. 'Separately to each insured against whom claim is made or "suit" is brought. Transfer Of Rights Of Recovery Against others To Us If the insured has rights to recover all or part of any payment we have made under this Coverage Part, those rights are transferred to us.= The insured must do nothing after loss to iml~air them. At our request, the insured will bring "suit" or transfer those rights to us and help us 'enforce them. Wh, en We Do Not Renew If ~,e decide not to renew this Coverage Part, we wili mail or deliver to the first Named Insured 11 of 15 Includes copyrighted material of Insurance Services Office, Inc., with its permission shown in the Declarations written notice of the non-renewal not less than 30 days before the expiration date. If notice is mailed, proof of mailing will be sufficient proof of notice. 10. Waiver Of Governmental Immunity We will waive, both in the adjustment of claims and in the defense of "suits" against the insured, any governmental immunity of the Named Insured, unless the insured requests in writing that we do not do so. Waiver of immunity as a defense will not subject us to liability for any portion of a claim or judgment in excess of the applicable Limit of Insurance. SECTION V -- 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. "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". 3. "Bodily injury" means bodily injury, sickness, disease, disability, shock, mental anguish, mental injury and humiliation, including resulting death. 4. "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: (t) The injury or damage arises out of: LB 25471 (10/99) 6o (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 (2) 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. "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" ihat is known or thought to be defective, ~leficient, inadequate or dangerous; or b. you have failed to fulfill the terms of a contract or agreement; if such property can be restored to use by: a. ~Fhe repair, replacement, adjustment or removal of "your product" or "your work"; or b. ,Your fulfilling the terms of the contract or agreement. "lnsbred contract" means: a. A lease of premises; b. Asidetrack agreement; c. An easement or license agreement, except in connection with construction or demolition operations on or within 50 feet of a railroad; d. 'An obligation, as required by ordinance, to ~indemnify a municipality, except in 'connection with work for a municipality; e. An elevator maintenance agreement; f. 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. 12 of 15 Includes copyrighted material of Insurance Services Office, Inc., with its permission Paragraph f. does not include that part of any contract or agreement: (1) That indemnifies a railroad for "bodily injury" or "property damage" arising out of construction or demolition operations, within 50 feet of any railroad property and affecting any railroad bridge or trestle, tracks, road-beds, tunnel, underpass or crossing; (2) That indemnifies an architect, engineer or surveyor for injury or damage arising out of: (a) Preparing, approving or failing to prepare or approve maps, shop drawings, opinions, reports, surveys, field orders, change orders or drawings and specifications; or (b) Giving directions or instructions, or failing to give them, if that is the primary cause of the injury or damage; or (3) Under which the insured, if an architect, engineer or surveyor, assumes liability for any injury or damage arising out of the insured's rendering or failure to render professional services, including those listed in (2) above and supervisory, inspection architectural or engineering activities; or (4) That indemnifies any person or organization for damage by fire to premises rented or loaned to you. "Loading or unloading" means the handling of property: a. After it is moved from the place where it is accepted for movement into or onto an aircraft, watercraft or "auto"; b. While it is in or on an aircraft, watercraft or "auto"; or 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". "Mobile equipment" means any of the following types of land vehicles, including any attached machinery or equipment: LB 25471 (10/99) a. Bulldozers, farm machinery, forklifts and ~ther vehicles designed for use principally 6ff public roads; b. Vehicles maintained for use solely on or r~ext to premises you own or rent; c. Vehicles that travel on crawler tread ; d. Vehicles, whether self-propelled or not, {naintained primarily to provide mobility to permanently mounted: il) Power cranes, shovels, Loaders, diggers or drills; or (2) Road construction or resurfacing i equipment such as graders, scrapers or I rollers; e. ~/ehicles not described in a., b., c., or d. above that are not self-propelled and are maintained primarily to provide mobility to ~)ermanently attached equipment of the following types: tl) 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 ifollowing types of permanently attached equipment are not "mobile equipment" but '.will be considered "autos": (1) Equipment designed primarily for: , (a) Snow removal; ~ (b) Road maintenance but not ' construction or resurfacing; or , (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. 9. "Occurrence" means an accident, including continuous or repeated exposure to substantially th~ same general harmful conditions. 13of 15 Includes copyrighted material of Insurance Services O~ice, Inc., with its permission 10. "Personal injury" means injury, other than "bodily injury", arising out of one or more of the following offenses: a. False arrest, detention or imprisonment; b. 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. 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; or e. Oral or written publication of material that violates a person's right of privacy; f. False or improper service of process; g. Violation of"property rights"; h. Discrimination; or i. Violation of the Federal Civil Rights Act of 1871 or 42 U.S.C. 1983 and similar laws. With respect to "personal injury", damages mean monetary sums and exclude all forms of injunctive relief and declaratory judgments. '11. "Products-completed operations hazard": a. 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. However, "your work" will be deemed completed at the earliest of the following times: (a) When all of the work called for in your contract has been completed; (b) 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; (c) 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. LB 25471 (10/99) Work that may need service, maintenance, correction, repair or replacement, but which is otherwise complete, will be treated as completed. b. Does not include "bodily injury" or "property ~iamage" arising out of: (t) The transportation of property, unless the injury or damage arises out of a condition in or on a vehicle not owned or operated by you, and that condition was created by the "loading or unloading" of that vehicle by any insured; (2) The existence of tools, uninstalled i equipment or abandoned or unused ,, materials; or ($) Products or operations for which the classification, listed in the Declarations or in a policy schedule, states that products-completed operations are subject to the General Aggregate Limit. )erty damage" means: Physical injury to tangible property, including all resulting loss of use of that property. All such loss of use shall be deemed to occur at the time of the physical injury that caused it; b. Loss of use of tangible property that is not physically injured. All such loss shall be deemed to occur at the time of the ~"occurrence" that caused it. 13. "PrOperty rights" means rights granted under any ordinance or law regulating zoning, construction, use or repair of any real property only when arising out of or in any way connected with the principles of eminent domain, condemnation and inverse condemnation. These rights do not include any rights to refunds of taxes, fees, as§essments, or similar payments. 14. "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: a. 'An arbitration proceeding in which such damages are claimed and to which the insured must submit or does submit with our · consent; or b. Any other alternative dispute resolution "proceeding in which such damages are 12. "Pro e. 14 of 15 Includes copyrighted material of Insurance Ser, zices Office, Inc., with its permission claimed and to which the insured submits with our consent. '15. "Your product" means: a. Any goods or products, other than real property, manufactured, sold, handled, distributed or disposed of by: (1) You; (2) Others trading under your name; or (3) A person or organization whose business or assets you have acquired; and b. Containers (other than vehicles), materials, parts or equipment furnished in connection with such goods or products. "Your product" includes: a. 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. "You'r product" does not include vending machines or other property rented to or located for t~e use of others but not sold. 16. "Yod, r work" 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. Warranties or representations made at any time with respect to the fitness, quality, ~lurability, performance or use of "your ,work"; and b. Yhe providing of or failure to provide ,warnings or instructions. LB 25471 (10/99) 15 of 15 Includes copyrighted material of Insurance Services O~ce, Inc., with its permission ENDORSEMENT NO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) iNSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. THIS ENDORSEMENT CHANGES THE POLICY. PL ,EASE READ IT CAREFULLY. LEAD CONTAMINATION EXCLUSION This endorsement modifies insurance provide~ under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART This endorsement excludes "occurrences" at or from any premises, site or location which is or was at any time owned or occupied by, or rented or loaned to, any insured; or from the operations of the insured, which result in: a. "Bodily Injury" arising out of the ingestion, inhalation or absorption of lead in any form; b. "Property Damage" arising from any form of lead; c. "Personal Injury" arising from any form of lead; d. "Advertising injury" arising from any form of lead; e. Mec~ical payments arising from any form of lead; f. Any loss, cost or expense arising out of any request, demand or order that any insured or others test for, monitor, clean up, remove, contain, trea~t, detoxify or neutralize, or in any way respond to, or assess the effects of lead; or g An~ loss, cost or expense arising out of any claim or "suit" by or on behalf of a governmental authority for damages because of testing for, monitoring, cleaning up, removing, containing, trea, ting, detoxifying or neutralizing, or in any way res[bonding to, or assessing the effects of lead. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE LB 25474 (10/99) ENDORSEMENT NO. A'CI'ACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) ! INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. The coverage afforded by this policy does not apply to bodily injury, personal injury or property damage arising out of: inhaling, ingesting or prolonged physical exposure to asbestos or goods or products containing asbestos; or 2. The use of asbestos in construction or manufacturing any good, product or structure; or ASBESTOS EXCLUSION 3. TheI 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. The coverage afforded by the policy does not apply to paymer~t for the investigation or defense of any loss, injury or damage or any cost. fine or penalty or for any expense of claim or suit related to any of the above. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE LB 25351 (9/99) DATE ENDORSEMENT NO. ATTACHED TO AND ENDORSEMENT EFFECTIVE INSURED AGENCY AND CODE FORMING A PART OF (Standard Time) POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. DAM EXCLUSION This endorsement modifies insurance provident under the following: COMMERCIAL GENERAL LIABILITY cOvERAGE PART ...... i injury" or "advertising injury" arising out This insurance does not app y to "bod'ly nJury', property damage personal of the rupture, bursting, overtopping, accidental discharge or structural ailure of any dam, levee or dike that: 1. you own, operate, use, maintain, license, permit or inspect; or 2. is located on any property you rent or lease, including a sub-lease. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE LB 25361 (9~99) DATE ENDORSEMENT NO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON THIS ENDORSEMENT CHANGES THE POLICY. PLE, ASE READ IT CAREFULLY. EXCLUSlON~FIREWOR~S Th s endorsement modifies insurance provided under the follow ng I M COMMERCIAL GENERAL LIABILITY COVERAGE FOR The following is added to the Exclusions section in COVERAGE A. BODILY INJURY AND PROPERTY DAMAGE LIABILITY, SECTION I COVERAGES: This insurance does not apply to "bodily injury" or "property damage" arising out of the igniting or discharging of fireworks in conjunction with any display, demonstration or show, conducted or sponsored by any insured. Fireworks include but are not limited to firecrackers and all aerial~ or ground displays. This exclusion does not apply to "bodily injury" or "property damage" arising out of emergency service you pro~,ide in response to an emergency arising out of or re~ulting from fireworks. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED LB 25365 (9~99) AUTHORIZED REPRESENTATIVE DATE ENDORSEMENT NO. ATTACHED TO AND ENDORSEMENT EFFECTIVE ; FORMING A PART OF (Standard Time) iNSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. POLLUTION EXCLUSION EXCEPTION FOR PARTIAL SEWAGE This endorsement modifies insurance provided under the following: PUBLIC ENTITY GENERAL LIABILITY C ,OVERAGE FORM The Pollution Exclusion does not apply to "property damage" to a building or its contents caused by actual exposure to sewage resulting from: i (1) The reverse flow of such sewage from within any sewage facility that you own, operate or maintain; or (2) The escape of sewage from any fixed conduit that you own, operate or maintain, but only if the escape occurs away from land you own or lease. ! But this exception does not apply to any "property damage" to the extent it is increased by, or would not have occurred but for the presence of material that is radioactive, toxic, caustic or corrosive. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCH,~NGED LB 24742a (9/99) AUTHORIZED REPRESENTATIVE DATE ENDORSEMENT NO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) iNSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A,M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. WAR OR TERRORISM EXCLUSION This endorsement modifies insurance provided under the following: PUBLIC ENTITY--GENERAL L ABILITY COVERAGE FORM A. Exclusion i. under Paragraph 2., Exclusions of Section I - Coverage A - Bodily Injury And Property Damage Liability is replaced by the following: 2. Exclusions iHowever, with respect to "terrorism", this ~exclusion only applies if one or more of the ?oilowing are attributable to an incident of "terrorism": (1) The total of insured damage to all types of This insurance does not apply to: i. War Or Terrorism "Bodily injury" or "property damage" arising, directly or indirectly, out of: (1) War, including undeclared or civilwar; or (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; or (4) "Terrorism", including any action taken in hindering or defending against an actual or expected incident of "terrorism" regardless of any other cause or event that contributes concurrently or in any sequence to the injury or damage. LB 26365 (1/02) (2) property exceeds $25,000,00Q In determining whether the $25,000,000 threshold is exceeded, we will include all insured damage sustained by property of all persons and entities affected by the "terrorism" and business interruption losses sustained by owners or occupants of the damaged property. For the purpose of this provision, insured damage means damage that is covered by any insurance plus damage that would be covered by any insurance but for the application of any terrorism exclusions; or Fifty or more persons sustain death or serious physical injury. For the purposes of this provision, serious physical injury means: (a) Physical injury that involves a substantial risk of death; or (b) Protracted and obvious physical disfigurement; or (c) Protracted loss of or impairment of the function of a bodily member or organ; or Page 1 of 3 Includes copyrighted material of Insurance Services Office, inc., with its permission. 1 Copyright, Insurance Services Office, nc., 200 (3) The "terrorism" involves the use, release or escape of nuclear materials, or directly or indirectly results in nuclear reaction or radiation or radioactive contamination; or (4) The "terrorism" is carried out by means of the dispersal or application of pathogenic or poisonous biological or chemical materials; or ($) Pathogenic or poisonous biological or chemical materials are released, and it appears that one purpose of the "terrorism" was to release such materials. Paragraphs ('1) and (2), immediately preceding, describe the thresholds used to measure the magnitude of an incident of "terrorism" and the circumstances in which the threshold will apply for the purpose of determining whether the Terrorism Exclusion will apply to that incident. When the Terrorism Exclusion applies to an incident of "terrorism", there is no coverage under this Coverage Part. In the event of any incident of "terrorism" that is not subject to the Terrorism Exclusion, coverage does not apply to any loss or damage that is otherwise excluded under this Coverage Part. Multiple incidents of "terrorism" which occur within a seventy-two hour period and appear to be carried out in concert or to have a related purpose or common leadership shall be considered to be one incident. B. The following exclusion is added to Paragraph 2., Exclusions of Section I - Coverage B- Personal And Advertising Injury Liability: 2. Exclusions This insurance does not apply to: War Or Terrorism "Personal injury" or "advertising injury" arising, directly or indirectly, out of: (1) War, including undeclared or civil war; or (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; or (4) "Terrorism", including any action taken in hindering or defending against an actual or expected incident of "terrorism" regardless of any other cause or event that contributes concurrently or in any sequence to the injury or damage. However, with respect to "terrorism", this exclusion only applies if one or more of the following are attributable to an incident of "terrorism": (1) The total of insured damage to all types of property exceeds $25,000,000. In determining whether the $25,000,000 threshold is exceeded, we will include all insured damage sustained by property of all persons and entities affected by the "terrorism" and business interruption losses sustained by owners or occupants of the damaged property. For the purpose of this provision, insured damage means damage that is covered by any insurance plus damage that would be covered by any insurance but for the application of any terrorism exclusions; or (2) Fifty or more persons sustain death or serious physical injury. For the purposes of this provision, serious physical injury means: (a) Physical injury that involves a substantial risk of death; or (b) Protracted and obvious physical disfigurement; or (c) Protracted loss of or impairment of the function of a bodily member or organ; or (3) The "terrorism" involves the use, release or escape of nuclear materials, or directly or indirectly results in nuclear reaction or radiation or radioactive contamination; or (4) The "terrorism" is carried out by means of the dispersal or application of pathogenic or poisonous biological or chemical materials; or LB 26365 (1/02) Page 2 of 3 Includes copyrighted material of Insurance Services Off~ce, Inc., with its permission. Copyright, Insurance Services Office, Inc., 2001 (5) Pathogenic or poisonous biological or chemical materials are released, and it appears that one purpose of the "terrorism" was to release such materials. Paragraphs (1) and (2) immediately preceding, describe the thresholds used to measure the magnitude of an incident of "terrorism" and the circumstances in which the threshold will apply for the purpose of determining whether the Terrorism Exclusion will apply to that incident. When the Terrorism Exclusion applies to an incident of "terrorism", there is no coverage under this Coverage Part. In the event of any incident of "terrorism" that is not subject to the Terrorism Exclusion, coverage does not apply to any loss or damage that is otherwise excluded under this Coverage Part. Multiple incidents of "terrorism" which occur within a seventy-two hour period and appear to be carried out in concert or to have a related purpose or common leadership shall be considered to be one incident. C. Exclusion h. under Paragraph 2. Exclusions of Section I - Coverage C - Medical Payments does not apply. D. The following definition is added to the Definitions Sect[on: "TeCrorism" means activities against persons, organizations or property of any nature: 1. That involve the following or preparation for the following: 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. 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. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE LB 26365 (1/02) Page 3 of 3 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Copyright, Insurance Services Qffice, Inc., 2001 EMPLOYEE BENEFITS LIABILITY - DECLARATIONS Policy No. 3XZ12057001 Replacement No. 3XZ12057000 NAMED INSURED AND ADDRESS: CITY OF JEFFERSONVILLE 501 EAST COURT AVE. JEFFERSONVILLE IN 47130 RETROACTIVE DATE: Section I of this insurance does not apply to neglig~ent acts, errors or omissions which occur before the following Retroactive Date (if any): $ 5,000,000 LIMITS OF INSURANCE Aggregate Limit Each Employee Limit DEDUCTIBLE The deductible is $1,000 Employee Limit. PREMIUM NO: OF EMPLOYEES Included $ 5,000,000 This reduces the Limit of Insurance shown as applicable to Each RATE PER EMPLOYEE Included (first 5,000) Included Included (next 5,000) Included Included Included (over 10,000) Included Minimum Premium Included Advance Pramiun Included ENDORSEMENTS ATTACHED TO THIS COVERAGE PART: Refer to ZC23941a (1-99) LB 25330 EST[MATED PREMIUM Included 9-99 EMPLOYEE BENEFITS LIABILITY COVERAGE FORM f'~-~ Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and what is and is not covered. Throughout this policy, the words "you" and "your refer to the Named Insured; shown in the Declarations. The words "we", "us" and "our" refer to the Company providing this insurance. The word "insured" means any person or organization qualifying as such under SECTION II - WHO IS AN INSURED. Other words and phrases that appear in quotation marks have §pecial meaning. Refer to SECTION VI - DEFINITIONS. SECTION I - COVERAGE 1. Insuring Agreement. We will pay those sums that the insured becomes legally obligated to pay as damages because of any "act, error or omission" of the insured, or of any other person for whose acts the insured is legally liable. The "act, error or omission" must be committed in the "administration" of your "employee benefit program". No other obligation or liability to pay sums or perform acts or services is covered unless explicitly provided for under Paragraph 3. Supplementary Payments. The "act, error or emission" must take place in the "coverage territory" and during the policy period. We will have the right and duty to defend any "suit" seeking those damages. But: (1) The amount we will pay for damages is limited as described in SECTION III - LIMITS OF INSURANCE; (2) We may at our discretion, investigate any report of an "act, error or omission" and settle any claim or "suit" that may result; and (3) Our right and duty to defend end when we have used up the applicable limit of insurance in the payment of judgments or settlements. 2. Exclusions. This insurance does not apply to: a. Loss arising out of any dishonest, fraudulent, criminal or malicious "act, error or omission" committed by any insured; b. "Bodily injury", "property damage" or "personal and advertising injury"; c. Loss arising out of failure or performance of contract by any insurer, or any other party, including the insured, obligated to afford benefits; d. Loss arising out of an insufficiency of funds to meet any obligations under any plan included in the "employee benefit program"; e. Any claim or"suit" based upon: (1) Failure of any investment to perform as represented by an insured; '(2) Advice given to any person to participate ; or not to participate in any plan included in , the "employee benefit program"; or (3) The investment or non-investment of ~ funds; Loss arising out of your failure to comply with !the mandatory provisions of any law 'concerning workers' compensation, 'unemployment insurance, social security or ,disability benefits; !Loss for which the insured is liable because of liability imposed on a fiduciary by the Employee Retirement Security Act of 1974, as now or hereafter amended; or 'Loss or damage for which benefits have 'accrued under the terms of your "employee '.benefit program" to the extent that such benefits are available from funds accrued by the insured for such benefits or from collectible insurance, notwithstanding the !insured's "act, error or omission" in administering the plan which precluded the claimant from receiving such benefits. Supplementary Payments. Welwill pay, with respect to any claim or "suit" we defend: a. ~,AII expenses we incur. b. The cost of bonds to release attachments, but .only for bond amounts within the applicable limit of insurance. We do not have to furnish these bonds. c. tAil reasonable expenses incurred by the insured at our request to assist us in the investigation or defense of the claim or "suit", including actual loss of earnings up to $250 a ' day because of time off from work. d. All costs taxed against the insured in the su~t. e. Prejudgment interest awarded against the ' insured on that part of the judgment we pay. If ~ we make an offer to pay the applicable limit of insurance, we will not pay any prejudgment interest based on that period of time after the offer. LB 24748a (5/99) Page 1 of 4 f. All interest on the full amount of any judgment that accrues after entry of the judgment and before we have paid, offered to pay or /'~-'", deposited in court the part of the judgment that is within the applicable limit of insurance. These payments will not reduce the limits of insurance. SECTION II - WHO IS AN INSURED 1. If you are designated in the Declarations as: a. A municipality, public school or special district, you are an insured. b. A partnership or joint venture, you are an insured. c. An organization other than a municipality, public school, special district, partnership or joint venture, you are an insured. Your directors and stockholders are also insureds, but only with respect to their liability as your directors or stockholders. 2. Each of the following is also an insured: a. Each of your partners, executive officers, board members and "employees" who is authorized to administer your "employee benefit program". b. 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 Coverage Part. 3. Any organization you newly acquire or form, other than a partnership, joint venture, or limited liability company, and over which you maintain ownership or majority interest, will qualify as a Named Insured if there is no other similar insurance available to that organization. However: a. Coverage under this provision is afforded only until the 90th day after you acquire, or form the organization or the end of the policy period, whichever is earlier; and b. Coverage under this provision does not apply to any "act, error or omission" that occurred before you acquired or formed the organization. No person or organization is an insured with respect to the conduct of any current or past partnership, joint venture, or limited liability company that is not shown as a Named Insured in the Declarations. SECTION III - LIMITS OF INSURANCE 1. The Limits of Insurance 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; c. Persons or organizations making claims or bringing "suits"; d. "Acts, errors or omissions" which result in loss; or e. Plans included in your "employee benefit program". 2. The Aggregate Limit is the most we will pay for all dan~ages because of "acts, errors or omissions" com'mitted in the "administration" of your "employee benefit program". 3. Subject to the Aggregate Limit, the Each Employee Limit is the most we will pay for all dam, ages sustained by any one "employee", including the "employee's" dependents and benbficiaries, because of "acts, errors or omissions" committed in the "administration" of youi "employee benefit program". The limlts of this Coverage Part apply separately to each co'nsecutive annual period and to any remaining period ~f less than 12 months, starting with the beginnir~g 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. SECTION IV - DEDUCTIBLE 1. Our obligation to pay damages on behalf of the insured applies only to the amount of damages in excbss of the deductible amount stated in the DeClarations as applicable to "Each Employee". The limits of insurance applicable to "Each Employee" will be reduced by the amount of this deductible. The Aggregate limit shall not be red~ced by the application of such deductible amount. 2. Th~ deductible amount stated in the Declarations applies to all damages sustained by an "e~ployee" because of an "act, error or omission" cornered by this insurance. 3. The terms of this insurance, including those with respect to: a. Our right and duty to defend any "suits" seeking those damages; and b. 'Your duties in the event of an "act, error or omission" claim or "suit"; apply irrespective of the application of the deductible amount. 4. W~ may pay any part or all of the deductible am'cunt to effect settlement of any claim or "suit" and, upon notification of the action taken, you sh~ll promptly reimburse us for such part of the de~luctible amount as has been paid by us. LB 24748a (5~99) Page 2 of 4 SECTION V - EMPLOYEE BENEFITS LIABILITY CONDITIONS 1. Duties In The Event Of Act, Error Or Omission, Claim Or Suit. a. You must see to it that we are notified as soon as practicable of an "act, error or omission" which may result in a claim. Not[ce should include: (1) How, when and where the "act, error or omission" took place; (2) The nature of any damage arising out of the "act, error or omission"; (3) The names and addresses of any "employees" who may suffer damages as a result of the "act, error or omission"; and (4) The names and addresses of any witnesses. b. If a claim is received by any insured you must: (1) Immediately record the specifics of the claim and the date received; and (2) Notify us 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) 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 damage to which this insurance may also apply. d. No insureds will, except at their own cost, voluntarily make a payment, assume any obligation or incur any expense without our consent. 2. Legal Action Against Us. No person or organization has a right under this Coverage Part: 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 under this Coverage Part 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 against an insured obtained after an actual trial; LB 24748a (5/99) but We will not be liable for damages that are not payable under the terms of this Coverage Part or that are in excess of the applicable limit of insurance. An agreed settlement means a settlement and release of liability signed by us, the insured and the claimant or the claimant's legal repr,esentative. 3. Other Insurance. If other valid and collectible insurance is available to the insured for a loss we cover under this Coverage Part we will contribute by limits. Under th s !method, each insurer's share is based on the ratio of its applicable limit of insurance to the total app!icable limits of insurance of all insurers for such loss. 4. Ban~kruptcy or Insolvency. Bankruptcy or insolvency of the insured or of the insured's estate will not relieve us of our obligations under this Coverage Part. 5. Representations. By ~ccepting this policy, you agree: a. The statements in the Declarations are accurate and complete; b. Those statements are based upon representations you made to us; and c. We have issued this policy in reliance upon your representations. 6. SeParation of Insureds. Except with respect to the L'm'ts of Insurance, and any rights or duties specifically assigned in this Coverage Part to the first Named Insured, this insurance applies: a. ~As if each Named Insured were the only Named Insured; and b. Separately to each insured against whom 'claim is made or "suit" is brought. 7. Tra:nsfer Of Rights Of Recovery Against Others To Us. If the insured has rights to recover all or part of any payment we have made under this Coverage Part, those rights are transferred to us. The msbred must do noth'ng after loss to impair them. At ~our request, the insured will bring "suit" or trar~sfer those rights to us and help us enforce them. 8. Cancellation, Non-renewal, Renewal And Reduction Or Deletion Of Coverage. Ail~. conditions relating to cancellation, non- renewal, renewal and reduction or deletion of coverage of any General Liability Coverage Form to which this Coverage Form is attached, apply to thi{ Coverage Form. Page 3 of 4 SECTION VI - DEFINITIONS 1. "Act, error or omission" means the failure to execute a required action, or a mistaken action committed in the "administration" of the insured's "employee benefit program". 2. "Administration" means: a. Counseling "employees", including their dependents and beneficiaries, with respect to the "employee benefit program"; b. Interpreting the"employee benefit program"; c. Handling records in connection with the "employee benefit program"; or d. Effecting or terminating any "employee's" participation in a plan included in the "employee benefit program". 3. "Bodily injury" means bodily injury, sickness, disease, disability, shock, mental anguish, mental injury and humiliation, including resulting death from any of these at any time. 4. "Coverage territory" means the United States of America (including its territories and possessions), Puerto Rico and Canada. 5. "Employees" includes employees whether actively employed, disabled or retired. 6. "Employee benefit program" means the following plans: a. Group life insurance, group accident or health insurance, profit sharing plans, pension plans and stock subscription plans, provided such insurance or plans are: (1) Equally available to all eligible "employees" and; (2} That no one other than an eligible "employee" may subscribe to such insurance or plans; or b. Unemployment insurance, social security benefits, workers' compensation and disability benefits. 7. "Personal and advertising injury" means injury other than "bodily injury" arising out of one or more of the fo owing offenses: a. ~'alse arrest, detention or imprisonment; b. 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, committed by or on behalf of its owner, landlord or lessor; d. Oral or written publication of material that slanders or libels a person or organization or Uisparages a person's or organization's goods, products or services; e. Oral or written publication of material that ~/iolates a person's right of privacy; f. The use of another's advertising idea in your ,advertisement"; g..Infringing upon another's copyright, trade dress or s ogan n your 'advert sement"; h. False or improper service of process; or i. 'Discrimination. 8. "Pr(~perty damage" means: a. Physical injury to tangible property, including 'all resulting loss of use of that property; or b. Loss of use of tangible property that is not 'physically injured. 9. "Suit" means a civil proceeding in which damages bec;ause of an "act, error or omission" to which this'insurance applies are alleged. "Suit" includes: a. ,An arbitration proceeding in which such .damages are claimed and to which the 'insured must submit or does submit with our ' consent; or b. ~,Any other alternative dispute resolution 'proceeding in which such damages are claimed and to which the insured submits with 'our consent. LB 24748a (5/99) Page 4 of 4 ENDORSEMENT NO. A'FrACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) i INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. WAR OR TERRORISM EXCLUSION This endorsement modifies insurance provided under the following: EMPLOYEE BENEFITS LIABILITY C, OVERAGE A. The following exclusion is added to Paragraph 2. Exclusions of SECTION I -- COVERAGE: 2. Exclusions This insurance does not apply to: War Or Terrorism Any act, error or omission arising, directly or indirectly, out of: (1) War, including undeclared or civil war; or (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; or (4) "Terrorism", including any action taken in hindering or defending against an actual or expected incident of "terrorism" regardless of any other cause or event that contributes concurrently or in any sequence to the injury or damage. However, with respect to "terrorism", this exclusion only applies if one or more of the following are attributable to an incident of "terrorism": LB 26381 (1/02) (1) '(2) '(3) The total of insured damage to all types of property exceeds $25,000,000. In determining whether the $25,000,000 threshold is exceeded, we will include all insured damage sustained by property of all persons and entities affected by the "terrorism" and business interruption losses sustained by owners or occupants of the damaged property. For the purpose of this provision, insured damage means damage that is covered by any insurance plus damage that would be covered by any insurance but for the application of any terrorism exclusions; or Fifty or more persons sustain death or serious physical injury. For the purposes of this provision, serious physical injury means: (a) Physical injury that involves a substantial risk of death; or (b) Protracted and obvious physical disfigurement; or (c) Protracted loss of or impairment of the function of a bodily member or organ; or The "terrorism" involves the use, release or escape of nuclear materials, or directly or indirectly results in nuclear reaction or radiation or radioactive contamination; or Page 1 of 2 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Copyr ght, insurance Services Office,.Inc., 2001 (4) The "terrorism" is carried out by means of the dispersal or application of pathogenic or poisonous biological or chemical materials; or (5) Pathogenic or poisonous biological or chemical materials are released, and it appears that one purpose of the "terrorism" was to release such materials. Paragraphs (1) and (2) immediately preceding, describe the thresholds used to measure the magnitude of an incident of "terrorism" and the circumstances in which the threshold will apply for the purpose of determining whether the Terrorism Exclusion will apply to that incident. When the Terrorism Exclusion applies to an incident of "terrorism", there is no coverage under this Coverage Part. In the event of any incident of "terrorism" that is not subject to the Terrorism Exclusion, coverage does not apply to any loss or damage that is otherwise excluded under this Coverage Part. Multiple incidents of "terrorism" which occur within a seventy-two hour period and appear to be carried out in concert or to have a related purpose or common leadership shall be considered to be one incident. B. The' following definition is added Definitions Section: "TeCrorism" means activities against organizations or property of any nature: 1. to the persons, 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. 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. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED LB 26381 (1/02) AUTHORIZED REPRESENTATIVE Page 2 of 2 Includes copyrighted material of Insurance Services office, Inc., with its permission. Copyright, Insurance Services Office, Inc., 2001 DATE ITEM 1. ITEM2. LAW ENFORCEMENT LIABILITY COVERAGE PART - SUPPLEMENTAL DECLARATIONS THIS SUPPLEMENTAL DECLARATIONS FORMS A PART OF POLICY NO. BUSINESS DESCRIPTION AND LOCATION oF PREMISES: LAW ENFORCEMENT AGENCY: Governmental Entity 3XZ12057001 LOCATION OF ALL PREMISES YOU OWN, RENT OR OCCUPY: Per Schedule On File With Company ITEM 3. ITEM 4. ITEM 5. ITEM 6. LIMIT OF LIABILITY COVERAGE A - WRONGFUL ACT(S) ANNUAL AGGREGATE LIMIT $ 5,000,000 EACH WRONGFUL ACT LIMIT $ 5,000,000 COVERAGE B - MEDICAL PAYMENTS MEDICAL EXPENSE LIMIT $ 10,000 DEDUCTIBLE $ 5,000 PREMIUM $ Included DESIGNEE OF PUBLIC ENTITY TO REPORT CLAIMS AND RECEIVE NOTICES: ITEM 7. FORM NUMBERS OF COVERAGE FORMS AND ENDORSEMENTS THAT ARE PART OF THIS COVERAGE PART AND MADE PART OF THIS pOLICY AT TIME OF ISSUE (other than applicable forms and endorsements shown elsewhere in the policy): Refer to ZC23941a (1-99) THIS SUPPLEMENTAL DECLARATIONS AND THE COMMON POLICY DECLARATIONS, TOGETHER WITH THE COVERAGE FORM(S) AND ENDORSEMENTS COMPLETE THE AB~3VE NUMBERED POLICY. COMMON POLICY CONDITIONS THE COMMON POLICY CONDITIONS DO NOT APPLY TO THIS COVERAGE PART. USAGE OF TERMS WHEN WE USE THE WORD DECLARATIONS IN THIS COVERAGE PART, WE MEAN THIS DECLARATIONS OR THE COMMON POLICY DECLARATIONS. LAWla 5-99 LAW ENFORCEMENT LIABILITY POLICY PLEASE READ THIS POLICY C, AREFULLY Throughout this policy, the words YOU, YOUR and NAMED INSURED refer to the entity identified as the NAMED INSURED in the Declarations. The words INSURED or INSUREDS i'efer to any person or entity qualifying as an INSURED under SECTION Ill--WHO IS AN iNSURED. The words'~WE, US, OUR and COMPANY refer to the Company stated in the Declarations as providing this insurance. Other words and phrases that appear in boldface print have special meanings. Refer to SECTION I--DEFINITIONS and other provisions of this policy for such meanings. Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and what is and is not covered. WE agree with the INSURED named in the Declarations, said Declarations being made a part hereof, in consideration of the payment of the premium, and subject to the limit 0f liability set forth in the Declarations, and in reliance upon representations made in the application (a copy of which is attached and made a part of this policy), and subject to all of the terms, conditions and exclusions of this policx, as follows: SECTION I -- DEFINITIONS Whenever used in this policy, the following words have these meanings: AUTOMOBILE -- means a land motor vehicle, trailer or semi-trailer designed for travel on public roads, including any attached machinery or equipment. But AUTOMOBILE does not include MOBILE EQUIPMENT. BODILY INJURY -- means BODILY INJURY, disease, disability, shock, mental anguish, mental injury and humiliation, including resulting death. DAMAGES -- means monetary sums, including compensatory and/or punitive damages where permitted by law, for which the INSURED(S) is legally obligated to pay. DEDUCTIBLE -- means the amount shown in the Declarations that the INSURED must contribute to DAMAGES. INSURED CONTRACT-- means: 1. A lease of premises agreement; 2. An elevator maintenance agreement; and 3. That part of any other contract or agreement pertaining to LAW ENFORCEMENT ACTIVITIES under which the INSURED assumes the tort liability of another political subdivision to pay for PERSONAL INJURY, BODILY INJURY or PROPERTY DAMAGE to a third person or organization. Tort liability means liability that would be imposed by law in the absence of any contract or agreement whether expressed or implied. An INSURED CONTRACT does not include that part of any contract or agreement that indemnifies any person ~or organization for DAMAGE by fire to premise.s rented or loaned to the INSURED. LAW ENFORCEMENT ACTIVITIES-- means: 1. Thc'se activities conducted by the NAMED INSURED'S Law Enforcement Department or Agency as shown on the Declarations; and 2. DelJartmentally approved activities that are declared in the application. LOADING OR UNLOADING -- means the handling of property: 1. After it is moved from the place where it is accepted for movement into or onto an aircraft, watercraft or AUTOMOBILE; or 2. While it is in or on an aircraft, watercraft or AUTOMOBILE; or 3. While it is being moved from an aircraft, watercraft or AUTOMOBILE 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 a,ircraft, watercraft or AUTOMOBILE. LOSS ADJUSTMENT EXPENSE -- means expenditures including, but not limited to, costs of investigations, experts, adjustment services, legal service~, court costs and other similar expenses of the Company. LOSS ADJUSTMENT EXPENSE shall not include salaries of employees of the Company. LAW2a (5/99) 1 of 10 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 road; 2. Vehicles maintained for use solely on or next to premises owned or rented by the NAMED INSURED; 3. Vehicles that travel on crawler treads; 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; 5. Vehicles not described in 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 ~"-~, b. Cherry pickers and similar devices used to raise or lower workers; 6. Vehicles not described in 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 AUTOMOBILE: a. Equipment designed primarily for: (1) Snow removal; (2) Road maintenance, but not construction or resurfacing; (3) Street cleaning; b. Cherry pickers and similar devices mounted on AUTOMOBILE truck chassis and used to raise or lower workers; and c. Air compressors, pumps and generators, including spraying, welding, building cleaning, geophysical exploration, lighting and well servicing equipment. PERSONAL INJURY-- means: 1. Assault and battery but only for injury neither expected nor intended from the standpoint of the insu~'ed. This does not apply to PERSONAL INJURY resulting from use of reasonable force to p~otect persons or property; 2. Disdrimination; 3. Fal~e arrest, detention or imprisonment, or malicious prosecution; 4. Fal~e or improper service of process; 5. The publication or utterance of a libel or slander or of other defamatory or disparaging material, or a publication or utterance in violation of an indK, idual's right to privacy; except publications or utterances in the course of or related to advertising, broadcasting or telecasting activities by or on behalf of the INSURED; 6. ViolAtion of civil rights, including, but not limited to, violations of the Federal Civil Rights Act and similar laws; 7. Wrqngful 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. POLICY PERIOD -- means the period of one year following the effective date and hour of this policy, or, if the time between the effective date and the terminaiion of the policy shown on the Declarations is less than one year, such lesser period. POLICY TERRITORY-- means: 1. The United States of America; or 2. International waters or airspace, provided the inju"ry or DAMAGE does not occur in the course of fravei or transportation to or from any place not,included in 1. above; or 3. All parts of the world if: a. The injury or DAMAGE arises out of a =WRONGFUL ACT of an INSURED beyond the territory described in 1. above, who is engaged in LAW ENFORCEMENT ACTIVITIES of the NAMED INSURED; and b. 'The INSURED'S responsibility to pay ~, DAMAGES is determined in a SUIT on the "merits, in the territory described in 1. above, or in a settlement to which WE agree. LAW2a (5/99) 2 of 10 PROPERTY DAMAGE-- means: 1. Physical injury to or destruction of tangible property, including all resulting loss of use of that property. All such loss of use shall be deemed to take place at the time of the physical injury that caused it; or 2. Loss of use of tangible property that has not been physically injured or destroyed, but only if such loss took place at the time of a WRONGFUL ACT. SUIT- means a civil proceeding in which monetary DAMAGES is alleged because of a WRONGFUL ACT to which this insurance applies. SUIT includes an arbitration or any other alternative dispute resolution proceeding in which such DAMAGES are claimed and to which the INSURED must submit or does submit with OUR consent. SUIT does not include or mean an administrative hearing or proceeding. WRONGFUL ACT -- means any actual or alleged act, error or omission, neglect or breach of duty by the INSURED while conducting LAW ENFORCEMENT ACTIVITIES that results in: 1. PERSONAL INJURY; or 2. BODILY INJURY; or 3. PROPERTY DAMAGE. Continuous or repeated exposure to substantially the same generally harmful conditions shall be considered a single WRONGFUL ACT. SECTION II -- COVERAGES COVERAGE A -- WRONGFUL ACT(S) -- INSURING AGREEMENTS 1. WE will pay those sums that the INSURED becomes legally obligated to pay as DAMAGES because of WRONGFUL ACT(S) to which this insurance applies. This insurance applies only to WRONGFUL ACT(S) that take place during the POLICY PERIOD and within the POLICY TERRITORY. The WRONGFUL ACT(S) must arise out of the performance of the INSURED'S LAW ENFORCEMENT ACTIVITIES or out of the ownership, maintenance or use of premises designated in the Declarations, including the ways immediately adjoining such premises on land) and all necessary and incidental operations. 2. No other obligation or liability to pay sums or perform acts or services is covered unless explicitly provided for under COVERAGE A -- WRONGFUL ACT(S) -- DEFENSE AND sUPPLEMENTARY PAYMENTS. COVERAGE A -- WRONGFUL ACT(S) -- DEFENSE AND SUPPLEMENTARY PAYMENTS WE shall have the right and duty to defend any SUIT against the INSURED even if any of the allegations of the SUIT are groundless, false or fraudulent. WE shall ha,~e the sole right to assign counsel to defend any such suit against the INSURED, and the INSURED agrees and consents to OUR exercise of that sole right. However, WE will have no duty to defend 'the INSURED against any SUIT seeking damages for WRONGFUL ACT(S) to which this insuran(~e does not apply. WE may make such investigation of any claim or SUIT as WE deem expedie'nt. WE shall not be obligated to pay any claim o~ judgment or to defend any SUIT after the applicable limit of OUR liability has been exhausted by payment of judgments or settlements. The INSURED shall not, without OUR written conseni, make any payment, admit any liability, settle a~y claim, assume any obligation, or incur any expense including but not limited to LOSS ADJUS.,TMENT EXPENSE. WE shall have the right, but no duty, to appeal any judgme?t. WE wil'l pay, in addition to the applicable limit of liability: 1. AIl ~xpenses WE incur. 2. The cost of bonds to release attachments, but only for bond amounts within the applicable limit of liability. WE do not have to furnish these bor~ds. 3. All' reasonable expenses incurred by the INSURED at OUR request to assist US in the investigation or defense of the claim or SUIT, inciuding actual loss of earnings up to $100 a day because of time off work. Expenses, as used here, do not include salaries of officers or employees of any NAMED INSURED. 4. All costs taxed against the INSURED in the SUIT. 5. Pre-judgment interest awarded against the INSURED on that part of the judgment WE pay. If WE make an offer to pay the applicable limit of lial~ility and the INSURED refuses to consent to OUR offer, WE will not pay any pre-judgment interest after the date of OUR offer. LAW2a (5/99) 3 of 10 All interest on the full amount of any judgment that accrues after entry of the judgment and before WE have paid, offered to pay, or deposited in court, the part of the judgment that is within the applicable limit of liability. COVERAGE A -- WRONGFUL ACT(S) -- EXCLUSIONS The following section of this policy restricts coverage. Please read these exclusions very carefully. This insurance does not apply to and WE shall not be obligated either to make any payment or to defend any SUIT in connection with any claim or SUIT made against the INSURED for WRONGFUL ACT(S): 1. Arising from an employment practice of the INSURED, including but not limited to: a. Refusalto employ; or b. Termination of employment; or c. Coercion, demotion, evaluation, reas- signment, discipline, defamation, harassment, humiliation, discrimination, or other employment related practices, policies, acts or omissions; or d. Consequential BODILY INJURY, PROPERTY DAMAGE, or PERSONAL INJURY as a result of (a) through (c) above. This exclusion applies whether the INSURED may be held liable as an emproyer or in any other capacity and to any obligation to share DAMAGES with or to repay someone else who must pay DAMAGES because of the injury; 2. Arising from the deliberate violation of any federal, state, or local statute, ordinance, rule or regulation committed by or with the knowledge and consent of the INSURED; 3. Arising from fraud or dishonesty of an INSURED; 4. Resulting in any claim for relief or redress in any form other than compensatory DAMAGES, including punitive damages where permitted by law; nor shall WE have any obligation to indemnify the INSURED for any costs, fees, including attorney fees, or expenses that the INSURED shall become obligated to pay as a result of any adverse judgment for injunctive or declaratory relief; however, WE will afford defense to the INSURED for such claims, SUITS, demands or actions, if not otherwise excluded, where payment for compensatory DAMAGES are requested; Arising from the INSURED'S obligation to pay DAMAGES by reason of the assumption of liability in a contract or agreement. This exclusion does not apply to liability for DAMAGES: a. 'Assumed in any joint powers or mutual law enforcement agreements; or b. Assumed by the INSURED under any INSURED CONTRACT; or c. That the INSURED would have, in the absence of the contract or agreement; Arising from any obligation of the INSURED under a workers compensation, disability benefits or unemployment compensation law, or any similar law; ReSulting in BODILY INJURY or PERSONAL INJURY to: a. iAny full or part time employee, auxiliary or volunteer police officer, or other law enfomement personnel of the INSURED .arising out of and in the course of employment by the INSURED; or b. iThe spouse, child, parent, brother or sister of that employee, or auxiliary volunteer law enfomement officer as a consequence of a. above. This exclusion applies: a. Whether the INSURED may be liable as an ,employer or in any other capacity; and b. To any obligation to share DAMAGES with or repay someone else who must pay 'DAMAGES because of a WRONGFUL ACT(S). This exclusion does not apply to liability assumed by the INSURED under any INSURED CONTRACT; Arising from the ownership, maintenance, use, or entrustment to others of any aircraft, AUTOMOBILE or watercraft owned or operated by, or rented or loaned to any INSURED. Use includes operation and LOADING OR UNLOADING. This exclusion does not apply to: a. A watercraft while ashore or on premises owned or rented by an INSURED; b. iA watemraft not owned by any INSURED that is: (1) Less than 26 feet long, and LAW2a (5/99) 4 of 10 (2) Not being used to carry persons or property for a charge; 9. Resulting in PROPERTY DAMAGE to: a. Property that is owned by, rented by, or occupied by any INSURED; b. Premises sold, given away, or abandoned by any INSURED if the PROPERTY DAMAGE arises out of any part of those premises; c. Property loaned to any INSURED; d. Property in the care, custody, and control of any INSURED; e. That particular part of real property on which the INSURED or any contractors or subcontractors working directly or indirectly on the INSURED'S behalf are performing operations, if the PROPERTY DAMAGE arises out of those operations. However, part d. of this exclusion does not apply to personal property held by the INSURED as a result of seizure, confiscation, or while being held as evidence; 10. Resulting in any loss, cost or expense: a. With respect to which an INSURED under the policy is also an INSURED under a nuclear energy liability policy issued by Nuclear Energy Liability Insurance Association, Mutual Atomic Energy Liability Underwriters, Nuclear Insurance Association of Canada or any of their successors, or would be an INSURED under any such policy but for its termination upon exhaustion of its limit of liability; or b. Resulting from the HAZARDOUS PROPERTIES of NUCLEAR MATERIAL and with respect to which any person or organization is required to maintain financial protection pursuant to the Atomic Energy Act of 1954, or any law amendatory thereof, or the INSURED is, or had this policy 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; or c. Resulting from the HAZARDOUS PROPERTIES of NUCLEAR MATERIAL, if: (1) The NUCLEAR MATERIAL is at any NUCLEAR FACILITY owned by, or operated by or on behalf of, an insured or has been discharged or dispersed therefrom; (2) The NUCLEAR MATERIAL is contained in SPENT FUEL or WASTE at any time possessed, handled, used, processed, stored, transported or disposed of by or on behalf of an INSURED; or (3) The WRONGFUL ACT arises out of the furnishing by an INSURED of services, materials, parts or equipment in connection with the planning, construction, maintenance, operation or use of any NUCLEAR FACILITY. As. used in this exclusion, HAZARDOUS PROPERTIES include radioactive, toxic or explosive properties; NUCLEAR MATERIAL means SOURCE MATERIAL; SPECIAL NUCLEAR MATERIAL or BY-PRODUCT MATERIAL; 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; SPENT FUEL means any fuel element or fuel component, solid or liquid, which has been used or exposed to radiation in a NUCLEAR REACTOR; WASTE means any waste material containing BY~PRODUCT MATERIAL other than the tailings or wastes produced by the extraction or conpentration of uranium or thorium from any ore processed primarily for its SOURCE MATERIAL content, and resulting from the operation by any person or organization of any NUCLEAR FACILITY included under the first two paragraphs of the definition of NUCLEAR FACILITY. NUCLEAR FACILITY means: a. 'Any NUCLEAR REACTOR b. Any equipment or device designed or used for separating the isotopes of uranium or plutonium, or processing or utilizing SPENT FUEL, or 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 the custody of the insured 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 igrams of uranium 235; LAW 2a (5/99) 5 of 10 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. 11. Resulting in any loss, cost, or expense, in whole or in part for any of the following: a. The actual, alleged or threatened discharge, dispersal, seepage, migration, release or escape of pollutants at any time; b. Any request, demand or order that any INSURED or others test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of pollutants; c. Any claim or SUIT by or on behalf of a government authority for damages because of testing for, monitoring, cleaning up, removing, containing, treating, detoxifying, or neutralizing, or in any way responding to, ,./~"%. or assesSing the effects of pollutants. POLLUTANTS mean any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, lead, asbestos, acids, alkalis, chemicals and waste. Waste includes, but is not limited to, materials to be recycled, reconditioned or reclaimed, and liquid or solid material carried off with groundwater in sewers or drains; COVERAGE B -- MEDICAL PAYMENTS -- INSURING AGREEMENTS WE will pay medical expenses as described below for BODILY INJURY caused by an accident: 1. On premises YOU own or rent; or 2. On ways next to premises YOU own or rent; or 3. Because of YOUR operations; provided that: 1. The accident takes place in the POLICY 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 an examination, at OUR expense, by physicians of OUR choice as often as WE reasonably require. WE will make these payments regardless of fault. These payments will not exceed the applicable limit of insurance as specified in Item 3. of the Declarations. 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. COVERAGE B- MEDICAL PAYMENTS -- EXCLUSIONS WE will not pay expenses for BODILY INJURY: 1. To any INSURED; 2. To a person hired to do work for or on behalf of any INSURED or a tenant of any INSURED; 3. To a person injured on that part of premises YOU own or rent that the person normally occupies; 4. To ,a person, whether or not an employee of any INSURED, if benefits for the BODILY INJURY are' payable or must be provided under a workers' compensation or disability benefits law or a~ similar law; 5. To a person injured while taking part in athletics; 6. To any inmate, patient or prisoner who is being treated, cared for, detained or imprisoned in any of the facilities owned and operated by YOU. SECTION III--WHO IS AN INSURED 1. The term INSURED as used herein means the entity stated in the Declarations as the NAMED INSURED and except as excluded by endprsement to th~s policy: a. The police department, sheriffs department, law enforcement department or any other law enforcement agency of the NAMED INSURED; and b. All full or part-time employees of the NAMED INSURED and all persons who were, now are or shall be lawfully elected, appointed or employed officials of the NAMED INSURED with respect to liability 'arising out of LAW ENFORCEMENT ACTIVITIES; and c. YOUR employee(s) while engaged in law enforcement or security duties for others, but ~,only to the extent such is authorized by YOU LAW 2a (5/99) 6 of 10 and then only while acting within the scope of such duties; and d. All auxiliary and volunteer law enforcement officers who serve under the direction and control of the NAMED INSURED'S Law Enforcement Department or Agency; and e. Any persons providing services to the NAMED INSURED under any mutual aid, joint power or similar agreement; and f. The estates, heirs, legal representative or assigns of deceased persons who were INSURED(S) at the time of a WRONGFUL ACT upon which a SUIT is based. V~th 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 or PERSONAL INJURY to a volunteer worker or co-employee of the person driving the equipment; or b. 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. 3. 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 LIABILITY Regardless of the number of INSURED(S) under this policy, persons or organizations who sustain DAMAGE payable under this policy, and/or SUIT(S) brought under this policy, OUR liability is limited as follows: 1. The ANNUAL AGGREGATE LIMIT shown in item 3. of the Declarations is the most WE will pay for the sum of: a. DAMAGES under Coverage A; and b. Medical expenses under Coverage B; for each POLICY PERIOD. 2. Subject to 1. above, the EACH WRONGFUL ACT LIMIT shown in Item 3. of the Declarations is the most WE will pay for the sum of: a. DAMAGES under Coverage A; and b. Medical expenses under Coverage B because of all BODILY INJURY, PROPERTY DAMAGE and PERSONAL INJURY arising out of any one WRONGFUL ACT. 3. Subject to 2. above, the Medical Expense Limit is the most WE will pay under Coverage B for all medical expenses because of BODILY INJURY sustained by any one person. 4. Subject to the limits of liability stated above, WE will 'only be liable to pay for DAMAGES in excess of the DEDUCTIBLE shown in Item 4. of the ~ Declarations for each and every WRONGFUL ACT. In the event WE expend funds for DAMAGES on behalf of the INSURED, WEwill be reimbursed for such expenditures up to the amount of the DEDUCTIBLE shown in Item 4. of the Declarations. Upon written demand by US, the amount of such DEDUCTIBLE will be payable to US within thirty (30! days. 5. Claims based on or arising out of the same act or interrelated acts of one or more INSURED(S) shall be considered a single WRONGFUL ACT and only one DEDUCTIBLE shall be applicable. 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 pedod of less th~n 12 months. In that case, the additional period will be deemed part of the preceding period for purp, oses of determining the limits of liability. SECTION V -- CONDITIONS 1. ASSIGNMENT. Assignment of interest under this policy shall not bind US unless OUR consent is first endorsed hereon. 2. AUDITS, INSPECTIONS AND SURVEYS. WE have the right, but are not obligated to: a. Perform a premium audit in accordance with OUR rules and rates. (1) If the premium shown in this Coverage Part is indicated as advance premium it 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 and payable on LAW 2a (5/99) 7 of 10 ¸3. notice to the NAMED INSURED. If the sum of the advance and audit premiums paid for the policy term is greater than the premium, WE will return the excess to the NAMED INSURED. (2) If the premium shown in this Coverage Part is indicated as non-adjustable, no audit will be necessary. WE reserve the right however to inspect the INSURED'S records. The NAMED INSURED must keep records of the information WE need for premium computation and send US copies at such times as WE may request; b. Make inspections and surveys at any time; c. Give the INSURED reports on the conditions WE find; and d. Recommend changes. Any premium audits, inspections, surveys, reports or recommendations are related only to insurability and the premiums to be 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. WE do not warrant that conditions: a. Are safe or healthful; or b. Comply with laws, regulations, codes or standards. BANKRUPTCY OR INSOLVENCY. The bankruptcy or insolvency of the INSURED shall not relieve US of any of OUR obligations hereunder. CANCELLATION. This policy may be cancelled by the first NAMED INSURED by surrendering the policy to US or any of OUR authorized agents, or by mailing to US written notice stating when thereafter the cancellation shall be effective. This policy may be cancelled by US by mailing to the first NAMED INSURED, at the last mailing address known to US, written notice stating when, not less than ten (10) days for non- payment of premium, or sixty (60) days for any other valid reason, such cancellation shall be effective. The mailing of notice shall be sufficient proof of notice. The time of surrender or the effective date and hour of cancellation stated in the notice shall become the end of the POLICY PERIOD. Delivery of such written notice either by the NAMED INSURED or by US shall be equivalent to mailing. If this policy shall be cancelled by the first NAMED INSURED, WE shall retain the customary short rate proportion of the premium hereon. Payment or tender of any unearned premium by US shall not be a condition precedent to the effectiveness of cancellation, but Such payment shall be made as soon as practical. If the period of limitation, relating to the giving of notice is prohibited or made void by any law controlling the construction thereof, such period shall be deemed to be amended to be equal to the minimum period or limitation of such law. 5. CHANGES. Notice to any agent or knowledge possessed by any agent or by any other person shali not effect a waiver or a change in any part of this policy or estop US from asserting any right under the terms of this policy, nor shall the terms of this policy be waived or changed, except by endorsement issued and made a part of this policy. 6. CONFLICTING LAW: Terms of this policy that are "in conflict with the law of the state wherein this~ policy is issued are hereby amended t° conform to such law. 7. ENTITY AUTHORIZATION CLAUSE. By acceptance of this policy, the first NAMED INSURED agrees to act on behalf of each INSURED with respect to the giving and receiving of notice of claim, cancellation or non'renewal, the payment of premium that may becpme due under this policy; and all INSUREDS agree that the first NAMED INS'URED shall act on their behalf. 8. EXAMINATION OF BOOKS AND RECORDS. WE may examine and audit the INSURED'S books and records as they relate to this policy, at any time during the POLICY PERIOD, and up to tl)ree years afterward. 9. INSURED'S DUTIES IN THE EVENT OF A WRONGFUL ACT, CLAIM OR SUIT. a. In the event of a WRONGFUL ACT, written notice containing particulars sufficient to .identify the INSURED and also reasonably ~obtainable information with respect to the time, place and circumstances thereof, and ~ the names and addresses of the injured and . of available witnesses, shall be given by or for the INSURED to US or any of OUR 'authorized agents as soon as reasonably possible. LAW2a (5~99) 8 of 10 b. If SUIT is brought against the INSURED, the INSURED shall immediately forward to US every demand, notice, summons or other process received by the INSURED. c. In the event of any WRONGFUL ACT payable hereunder, notice to US shall be given to the person or firm(s) shown under Item 6. of the Declarations. Notice shall be deemed to be received if sent by prepaid mail properly addressed. d. The INSURED shall cooperate with US and, at OUR request, consent to being examined and questioned by OUR representative, under oath if necessary, attend hearings, depositions and trials and shall assist in effecting settlement, securing and giving evidence, obtaining the attendance of witnesses and in the conduct of SUIT(S), as well as in the giving of a written statement or statements to OUR representatives and defense. In the event of a WRONGFUL ACT occurring that is likely to involve US hereunder, the INSURED shall not make any payment, assume any liability or incur any expense, including but not limited to LOSS ADJUSTMENT EXPENSE, without OUR consent first being obtained. WE shall have full discretion in the handling of any claim, and the INSURED shall give full information and assistance as WE may reasonably require. 10. 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 unless there has been compliance with all policy terms. A person or organization may sue US to recover on an agreed settlement or on a final judgment against an INSURED obtained after an actual trial; but WE will not be liable for LOSSES that are not payable under the terms of this policy or that are in excess of the applicable limit of liability. An agreed settlement means a settlement and release of liability signed by US, the INSURED and the claimant or the claimant's legal representative. 11. NONRENEWAL. If WE elect not to renew this policy, WE will mail to the NAMED INSURED at the address shown in the Declarations, written notice of such nonrenewal. Such written notice 12. will be mailed not less than (60) days prior to the expiration date of this policy. If mailed, proof of maillng will be sufficient proof of notice. OTHER INSURANCE. The insurance afforded by this policy is primary insurance, except if other valid and collectible insurance is available to the INSURED for a claim presented or when statbd to apply in excess of or contingent upon the absence of other insurance. When this insurance is primary and the INSURED has othe, r insurance that is stated or found to be applicable to the loss on an excess or contingent basis, the amount of OUR liability under this poliSy shall not be reduced by the existence of such other insurance. Wh&n this insurance is excess, WE will have no duty under Coverage A to defend any claim or SUIT that any other insurer has a duty to defend. If no other insurer defends, WE will undertake to do so, but WE will be entitled to the INSURED'S rights against all other insurers. i . When this insurance ~s excess over other insurance, WE will pay only OUR share of the amount of the loss, if any, that exceeds the sum of: , a. The total amount that all such other insurance would pay for the loss in the 'absence of this insurance; and b. ~The total of all DEDUCTIBLE and self- 'insured amounts under all such other insurance. When both this insurance and other insurance apply to the loss on the same basis, whether primary, excess or contingent, WE shall not be lialsle under this policy for a greater proportion of the loss than that stated in the applicable corffribution provision below: a. CONTRIBUTION BY EQUAL SHARES. If all other valid and collectible insurance provides for contribution by equal share, WE will follow this method also. Under this provision, each insurer contributes equal amounts until it has paid its applicable limit of liability or none of the loss remains, whichever comes first. b. CONTRIBUTION BY LIMITS. If any of the other insurance does not provide for contribution by equal shares, WE will contribute by limits. Under this provision, each insurer's share is based on the ratio of its applicable limit of liability to the total applicable limits of liability of all insurers. LAW 2a (5/99) 9 of 10 The insurance afforded by this policy for WRONGFUL ACT(S) arising out of the ownership, maintenance or use of premises shall apply as excess over any other valid and collectible insurance available to the INSURED whether such insurance is stated to be primary, contributory, excess, contingent or otherwise, unless written only as specific excess insurance over the limits of liability provided by this policy. 13. REPRESENTATION. By accepting this policy, YOU agree: a. The statements in the Declarations are accurate and complete; b. Those statements are based upon representations YOU made to US; and c. WE have issued this policy in reliance upon YOUR representations. 14. SEPARATION OF INSUREDS. Except with respect to the limits of liability and any rights or duties specifically assigned in this policy to the first NAMED INSURED, this insurance applies: a. As if each NAMED INSURED were the only NAMED INSURED; and b. ;eparately to each INSURED against whom ;laim is made or SUIT is brought. 15. SETTLEMENT. WE shall not settle any SUIT without the INSURED'S consent. If, however, the i INSURED refuses to consent to any sefti~gment offer received by US, and shall elect to contest the claim or continue any legal proceedings in connection with such claim, OUR liability to indemnify and/or defend the INSURED for i~he claim shall not exceed the amount for which the claim could have been so settled plus LOSS ADJUSTMENT EXPENSE incurred up to the date of such refusal after a written tender of suc~ an offer has been made by US to the INSURED. 16. TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US. If the INSURED 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 reqbest, the INSURED will bring SUIT or transfer those rights to US and help US enforce them. LAW 2a (5/99) 10 of 10 ENDORSEMENTNO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO, DAY YR. 12:01 NOON A.M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. WAR OR TERRORISM EXCLUSION This endorsement modifies insurance provided under the following: LAW ENFORCEMENT LIABILITY COV~ERAGE FORM This following EXCLUSION is added to SECTION II - COVERAGES, COVERAGE A - WRONGFUL ACT(S) -- EXCLUSIONS: WAR OR TERRORISM This insurance does not apply to and WE shall not be obligated either to make any payment or to defend any SUIT in connection with any claim or SUIT made against the INSURED for WRONGFUL ACT(S) arising, directly or indirectly, out of: 1. War, including undeclared or civil war; or 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; or 4. TERRORISM, including any action taken in hindering or defending against an actual or expected incident of TERRORISM regardless of any other cause or event that contributes concurrently or in any sequence to the injury or damage. However, with respect to TERRORISM, this exclusion only applies if one or more of the following are attributable to an incident of TERRORISM: The total of insured damage to all types of property exceeds $25,000,000. In determining whether the $25,000,000 threshold is exceeded, we will include all insured damage sustained by property of all persons and entities affected by the 'TERRORISM and business interruption iosses sustained by owners or occupants of the damaged property. For the purpose of this provision, insured damage means damage that is covered by any insurance plus damage that would be covered by any insurance but for the application of any terrorism exclusions; or Fifty or more persons sustain death or serious physical injury. For the purposes of this provision, serious physical injury means: a. Physical injury that involves a substantial ~ risk of death; or b. Protracted and obvious physical ' disfigurement; or c. Protracted loss of or impairment of the function of a bodily member or organ; or The TERRORISM involves the use, release or escape of nuclear materials, or directly or indirectly results in nuclear reaction or 'radiation or radioactive contamination; or LAW 95 (11/01) Page 1 of 2 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Copyright, Insurance Services Office, Inc., 2001 4. The TERRORISM is carried out by means of the dispersal or application of pathogenic or poisonous biological or chemical materials; or 5. Pathogenic or poisonous biological or chemical materials are released, and it appears that one purpose of the TERRORISM was to release such materials. Paragraphs 1. and 2., immediately preceding, describe the thresholds used to measure the magnitude of an incident of TERRORISM and the circumstances in which-the threshold will apply for the purpose of determining whether the Terrorism Exclusion will apply to that incident. When the Terrorism Exclusion applies to an incident of TERRORISM, there is no coverage under this Coverage Part. In the event of any incident of TERRORISM that is not subject to the Terrorism Exclusion, coverage does not apply to any loss or damage that is otherwise excluded under this Coverage Part. Multiple incidents of TERRORISM which occur within a seventy-two hour period and appear to be carried out in concert or to have a related purpose or common leadership shall be considered to be one incident. B. The following definition is added to SECTION I -- DEEINITIONS: TERRORISM means activities against persons, orgamzat~ons or property of any nature: 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; Commission or threat of an act that interferes with or disrupts an electronic, 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. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE LAW 95 (11/01) Page 2 of 2 Includes copyrighted material of Insurance Services Off~ce, Inc., with its permission. Copyright, Insurance Services Office, inc., 2001 ITEM 1. ITEM2. ITEM 3. ITEM 4. ITEM 5. ITEM 6. PUBLIC OFFICIALS LIABILITY COVERA,GE PART - SUPPLEMENTAL DECLARATIONS THIS SUPPLEMENTAL DECLARATIONS FORMS A PART, OF POLICY NO. 3XZ'1205700'1 RETROACTIVE DATE: This insurance does not apply to WRONGFUL ACTS which occur before the RETROACTIVE DATE shown above. LIMIT OF LIABILITY ANNUAL AGGREGATE LIMIT $ 5,000,000 EACH WRONGFUL ACT LIMIT $ 5,000,000 DEDUCTIBLE $ 5,000 PREMIUM $ INC DESIGNEE OF PUBLIC ENTITY TO REPORT CLAIMS AND RECEIVE NOTICES: ITEM 7. ITEM 8. NOTICE OF CLAIM SHALL BE GIVEN TO: SPECIALTY NATIONAL INSURANCE COMPAN'~, 7501 E. McCormick Parkway, 200 North Scottsdale, AZ 85258 ~ FORM NUMBER OF COVERAGE FORMS AND ENDORSEMENTS THAT ARE PART OF THIS COVERAGE PART AND MADE PART OF THIS IPOLICY AT TIME OF ISSUE (other than applicable forms and endorsements shown elsewhere in the policy): Refer to ZC23941a (1-99) THIS SUPPLEMENTAL DECLARATIONS AND THE COMMON POLICY DECLARATIONS, TOGETHER WITH THE COVERAGE FORM(S) AND ENDORSEMENTS COMPLETE THE ABiOVE NUMBERED POLICY. COMMON POLICY CONDITIONS THE COMMON POLICY CONDITIONS DO NOT APPLY TO THIS COVER~AGE PART. USAGE OF TERMS ~ WHEN WE USE THE WORD DECLARATIONS IN THIS COVERAGE PART, WE MEAN THIS DECLARATIONS OR THE COMMON POLICY DECLARATIONS. POFlb 5-99 PUBLIC OFFICIALS LIABILITY !NSURANCE THIS IS A CLAIMS MADE POLICY PLEASE READ THIS POLICY CAREFULLY Throughout this policy, the words YOU, YOUR and NAMED INSURED refer to the entity identified as the NAMED INSURED in the Declarations. The words INSURED or INSUREDSlrefer to any person or entity qualifying as an INSURED under SECTION Ill--WHO IS AN INSURED. The wordi WE, US, OUR and COMPANY refer to the Company stated in the Declarations as providing this insurance. ~ Other words and phrases that appear in boldface print hav~ special meanings. Refer to SECTION I~DEFINITIONS and other provisions of this policy for such meanings. Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and what is and is not covered. WE agree with the INSURED named in the Declarations, said Declarations being made a part hereof, in consideration of the payment of the premium, and subject to the mit~of liability set forth in the Declarations, and in reliance upon representations made in the application (a copy of which is attached and made a part of this policy), and subject to all of the terms, conditions and exclusions of this policy, as follows: SECTION I -- DEFINITIONS Whenever used in this policy, the following words have these meanings: CLAIM -- means written demand from any party intending to hold an INSURED responsible for damages resulting from a WRONGFUL ACT covered by this policy. CLAIM also means an INSURED'S knowledge of cimumstances that could reasonably be expected to give rise to such notice. DEDUCTIBLE -- means the amount shown in Item 4. of the Declarations that the INSURED must contribute to LOSS. EMPLOYEE -- means any person who has been hired to perform services either on a full-time or part- time b~sis by and for the Public Entity and to whom wages or salary are paid and on whose behalf federal or local taxes are withheld. EMPLOYMENT BENEFITS -- means wages, salaries, bonuses, incentives, perquisites, fringe benefits, or other payments, entitlements or benefits owed to any EMPLOYEE as a result of an EMPLOYMENT CONTRACT. EMPLOYMENT CONTRACT -- means any contract of employment between the Public Entity and an EMPLOYEE. LOSS!- means any compensatory monetary amount, ~ncludmg punitive damages where permitted by laTM, for which the INSURED(S) is legally obligated to pay as a result of WRONGFUL ACT(S) covered by this policy and shall include, but not be POF 2b (5~99) 1 of 11 limited to, judgments and settlements. LOSS shall not include: 1. Criminal or civil fines or penalties; 2. Liquidated damages as provided under a contract or statute; 3. Return of taxes, assessments, penalties, fines and/or fees; 4. The salaries, wages or overhead expenses of any INSURED, or other official, EMPLOYEE or member or officer of the Public Entity, or any governmental body, in connection with the investigation and/or defense of CLAIMS; 5. Matters that may be deemed uninsurable under the law pursuant to which this policy shall be construed; 6. Costs of investigation and defense of CLAIMS, including attorneys' fees and expenses, costs of appeal bonds, and costs taxed against the INSURED where another entity or insurer is obligated to defend or reimburse the INSURED for such costs; EMPLOYMENT BENEFITS owed as a result of a written EMPLOYMENT CONTRACT that is not the result of a collective bargaining agreement. LOSS ADJUSTMENT EXPENSE -- means payments allocated to a specific CLAIM or SUIT for its investigation, settlement, or defense, including attorney fees and all other litigation expenses. LOSS ADJUSTMENT EXPENSE shall not include salaries and expenses of OUR EMPLOYEES or YOUR EMPLOYEES. POLICY PERIOD -- means the period of one year following the effective date and hour of this policy or anniversary thereof, or if time between the effective date or any anniversary and the termination of this policy is less than one year, such lesser period. POLICY TERRITORY~eans: 1. The United States of America; or 2. International waters or airspace, provided the injury or LOSS does not occur in the course of travel or transportation to or from any place not included in 1. above; or 3. All parts of the world if: a. The injury or LOSS arises out of a WRONGFUL ACT of an INSURED beyond the territory described in 1. above, who is ingaged in the NAMED INSURED'S usiness activities and b. The INSURED'S responsibility to pay LOSS is determined in a SUIT on the merits, in the [erritory described in 1. above, or in a !settlement to which WE agree. PROPERTY DAMAGE -- means: 1. PhySical injury to or destruction of property, tangible or intangible, including all resulting loss of u~e of that property. All such loss of use shall be deemed to take place at the time of the physical injury that caused it; or 2. Loss of use of property, tangible or intangible, that has not been physically injured or des!royed, but only if such LOSS took place at the time of a WRONGFUL ACT. RETROACTIVE DATE -- means the date and hour shown 'in Item 2. of the Declarations and no coverage is afforded by the policy for WRONGFUL ACT(S)i committed by the INSURED prior to this date eyen if the first notice of claim is received during the POLICY PERIOD. SUIT ~' means a civil proceeding in which monetary LOSS is alleged because of a WRONGFUL ACT to which this insurance applies. SUIT includes an arbitrati~3n or any other alternative dispute resolution proceed, lng in which such LOSS is claimed and to which the INSURED must submit or does submit with oUR consent. SUIT d~oes not include or mean an administrative hearing~ or proceeding. VOLUN~TEER -- means any person whose services are uncompensated and whose activities are directed and supervised by, and for the benefit of, the Public Entity. Volunteer does not include any personI performing services which are ordered by, conneqted with, or supervised by any court, penal or law enforcement official or institution. WRONGFUL ACT(S) ---means: Any all?ged or actual: 1. Act, error, misstatement, misleading statement, or i omission of an INSURED constituting a POF 2b (5/99) 2 of 11 breach of a duty imposed by law or a breach of an EMPLOYMENT CONTRACT; or 2. Violation of any civil rights protected by federal law; or 3. Violation of any state civil rights law; that arises out of the discharge of duties for the NAMED INSURED, individually or collectively. SECTION II -- COVERAGES INSURING AGREEMENTS WE will pay on behalf of the INSURED all LOSS that the INSURED shall be legally obligated to pay resulting from a WRONGFUL ACT but only with respect to CLAIMS first made against the INSURED during the POLICY PERIOD. The WRONGFUL ACT(S) must occur within the POLICY TERRITORY. DEFENSE AND SUPPLEMENTARY PAYMENTS WE shall have the right and duty to select counsel and to defend any CLAIM or SUIT against the INSURED seeking damages for LOSS even if any of the allegations of the SUIT are groundless, false or fraudulent. WE shall have the sole right to assign counsel to defend any such suit against the INSURED, and the INSURED agrees and consents to OUR exercise of that sole right. However, WE will have no duty to defend the INSURED against any CLAIM or SUIT seeking damages for WRONGFUL ACT(S) to which this insurance does not apply. WE may make such investigation of any CLAIM or SUIT as WE deem expedient. WE shall not be obligated to pay any CLAIM or judgment or to defend any SUIT or pay any fees, costs or expenses after the applicable limit of OUR liability has been exhausted by payment of judgments or settlements. WE shall not settle any CLAIM without the written consent of the INSURED. If, however, the INSURED refuses to consent to a settlement recommended by US and elects to contest the CLAIM or continue legal proceedings in connection with such CLAIM, OUR liability for the CLAIM shall not exceed the amount for which the CLAIM could have been settled, including LOSS ADJUSTMENT EXPENSES incurred, with the INSURED'S consent up to the date of Such refusal, or the applicable limit of liability, whichever is less. The INSURED shall not, without OUR written consent, make any payment, admit any liability, settle a~y CLAIM, assume any obligation, or incur any expense, including but not limited to, LOSS ADJUSTMENT EXPENSE. WE sh~ll have the right, but no duty, to appeal any judgment. WE willI pay, in addition to the applicable limit of 1. All 8xpenses WE incur; 2. All 'costs taxed against the INSURED in the sum 3. All reasonable expenses incurred by the INSURED at OUR request to assist US in the investigation or defense of the CLAIM or SUIT, including actual lass of earnings up to $100 a day! because of time off work. Expenses, as used here, do not include salaries of officers or EMPLOYEES of any NAMED INSURED, 4. Pre'judgment interest awarded against the INS,URED on that part of the judgment WE pay. fWE make an offer to pay the applicable limit of insbrance and the INSURED refuses to consent to OUR offer, WE will not pay any pre-judgment intei-est after the date of OUR offer; 5. All interest on the full amount of any judgment tha{ accrues after entry of the judgment and before WE have paid, offered to pay, or deposited in court, the part of the judgment that is Within the applicable limit of liability. 6. The.,' cost of bonds to release attachments and appeal bonds required in any SUIT defended by US'. but only for bond amounts within the apPlicable limit of insurance. WE do not have to furfiish these bonds. EXCLUSIONS The fo, llowing section of this poliCy restricts coverage. Please read these exclusions very carefully. POF 2b (5/99) 3 of 11 This insurance does not apply to and WE shall not be obligated either to make any payment or to defend any SUIT in connection with any CLAIM or SUIT made against the INSURED: 1. Based upon or attributable to the INSURED gaining any profit, advantage or remuneration to which the INSURED is not entitled; 2. Brought about or contributed to by fraud, dishonesty, or bad faith of an INSURED; For any LOSS whether direct, indirect or consequential, arising from or caused by bodily injury, sickness, emotional distress, mental anguish, humiliation, disease or death of any person or for LOSS to or destruction of any property, tangible or intangible, including diminution of value or loss of use; For false arrest, detention or imprisonment, libel, slander, or other defamatory or disparaging material, discrimination, unless insurance thereof is prohibited by law, 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, assault, battery, malicious prosecution or false or improper service of process; Arising from the activities of any law enforcement agency or law enforcement personnel, including the operation of adult and juvenile detention facilities; 6. As a result of strikes, riots or civil commotion; Based upon or arising out of any activity for which the INSURED is acting in a fiduciary capacity, including, but not limited to, the administration of any employment benefit plan, including any CLAIM based upon or arising from the Employee Retirement Income Security Act of 1974 (ERISA) and subsequent amendments or any similar federal, state or local law or regulation; Resulting in any CLAIM or SUIT seeking relief or redress in any form other than compensatory LOSS; including punitive damages where permitted by law; nor shall WE have any obligation to indemnify the INSURED for any costs, fees, including attorney fees, or expenses that the INSURED shall become obligated to pay as a result of any adverse judgment for injur~ctive or declaratory relief; however, WE will afford defense to the INSURED for such CLAIM or ~SUIT, if not otherwise excluded, where pay~nent for compensatory LOSS is requested; 9. Arising from a taking that involves or is in any way' related to the principles of eminent domain, adverse possession, dedication by adverse use, invelrse condemnation, or condemnation proc~eedings, or by whatever name used, whelther such LOSS is made directly against any INSURED or by virtue of any agreement entered into by or on behalf of any INSURED; 10. Res'ulting in any LOSS, cost, or expense, in whole or in part for any of the following: a. 'The actual, alleged or threatened discharge, '.dispersal, seepage, migration, release or ,escape of pollutants at any time; b. Any request, demand or order that any INSURED or others test for, monitor, dean iup, remove contain, treat, detoxify or ineutrahze, or in any way respond to, or !assess the effects of pollutants; c. iAny CLAIM or SUIT by or on behalf of a government authority for damages because iof testing for, monitoring, cleaning up, removing, containing, treating, detoxifying, or neutralizing, or in any way responding to, ?r assessing the effects of pollutants. POLLUTANTS mean any solid, liquid, gaseous or ~,thermal irritant or contaminant, including smoke, vapor, soot, fumes, lead, asbestos, aci(/s, alkalis, chemicals, electro magnetic radiation and waste. Waste includes, but is not limited to, materials to be recycled, reconditioned or reclaimed, and liquid or solid ma'~erial carried off with groundwater in sewers or drains; 11. Re§ulting in any LOSS, cost or expense: a. 'With respect to which an INSURED under 'the policy is also an INSURED under a ~nuclear energy liability policy issued by Nuclear Energy Liability Insurance 'Association, Mutual Atomic Energy Liability POF 2b (5/99) 4 of 11 Underwriters, Nuclear Insurance Association of Canada or any of their successors, or would be an INSURED under any such policy but for its termination upon exhaustion of its limit of liability; or b. Resulting from the HAZARDOUS PROPERTIES of NUCLEAR MATERIAL and with respect to which any person or organization is required to maintain financial protection pursuant to the Atomic Energy Act of 1954, or any law amendatory thereof, or the INSURED is, or had this policy 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; or c. Resulting from the HAZARDOUS PROPERTIES of NUCLEAR MATERIAL, if: (1) The NUCLEAR MATERIAL is at any NUCLEAR FACILITY owned; by, or operated by or on behalf of, an insured or has been discharged or dispersed therefrom; (2) The NUCLEAR MATERIAL is contained in SPENT FUEL or WASTE at any time possessed, handled, used, processed, stored, transported or disposed of by or on behalf of an INSURED; or (3) The WRONGFUL ACT arises out of the furnishing by an INSURED of services, materials, parts or equipment in connection with the planning, construction, maintenance, operation or use of any NUCLEAR FACILITY. As used in this exclusion, HAZARDOUS PROPERTIES include radioactive, toxic or explosive properties; NUCLEAR MATERIAL means SOURCE MATERIAL, SPECIAL NUCLEAR MATERIAL or BY-PRODUCT MATERIAL; 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 therSof; SPENT FUEL means any fuel element or fuel component, solid or liquid, which has been used or exposed to radiation in a NUCLEAR REACTOR; wA~STE means any waste material containing BY~PRODUCT MATERIAL other than the tailiflgs or wastes produced by the extraction or conbentration of uranium or thorium from any ore pro,cessed primarily for its SOURCE MATERIAL content, and resulting from the operation by any person or organization of any NUCLEAR FACILITY included under the first two paragraphs of the definition of NUCLEAR FACILITY; NUCLEAR FACILITY means: a. iAny NUCLEAR REACTOR; b. Any equipment or device designed or used 'for separating the isotopes of uranium or I plutonium, or processing or utilizing SPENT ', FUEL, or 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 the ~,custody of the insured 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. i Any structure, basin, excavation, premises or place prepared or used for the storage or disposal of WASTE; An~l 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 sel.'f-supporting chain reaction or to contain a critical mass of fissionable material. Fo? any LOSS arising as a consequence of the fai!ure, refusal, or inability of the INSURED to enter into, renew, or perform any oral, written or implied contract or agreement between the POF 2b (5/99) 5 of 11 INSURED and any other person, except any oral, written or implied EMPLOYMENT CONTRACT. SECTION Ill---WHO IS AN INSURED The term INSURED as used herein means the public entity stated in the Declarations as the NAMED INSURED and except as excluded by endorsement to this policy: 1. All persons who were, now are, or shall be lawfully elected, appointed or employed officials of the NAMED INSURED while acting within the scope of their duties for the NAMED INSURED; 2. Members of commissions, boards or other units operated by and under the jurisdiction of such NAMED INSURED while acting within the scope of their duties for the NAMED INSURED and within apportionment of the total operating budget indicated in the application form, provided that the insurance afforded shall not extend to any of the following boards, commissions or units unless specifically endorsed hereon: schools, airports, transit authorities, hospitals, municipally owned gas or electric companies, housing authorities or port authorities; 3. All EMPLOYEES and all persons who perform service on a volunteer basis for the NAMED INSURED while acting within the scope of their duties for the NAMED INSURED and under its direction and control; 4. Any persons providing services to the NAMED INSURED under any mutual aid or similar agreement; 5. The estates, heirs, legal representatives or assigns of deceased persons who were an INSURED(S) at the time of the WRONGFUL ACT(S) upon which a CLAIM is based; 6. The legal representatives or assigns of the INSURED(S) in the event of their incompetency, insolvency or bankruptcy. However none of the following are INSURED(S) under this policy: 1. Any INSURED, including the NAMED INSURED, with respect to the operation of boards, commissions or other units, the members of which are not afforded coverage under 2. above; and ': 2. Any Independent contractor, person(s) or entities who" are on retainer, are a consultant or are unde~r contract for services, for any INSURED, unless specifically designated in the application, a cody of which is attached. SECTION IV-- EXTENDED REPORTING PERIOD -- BASI~ AND OPTIONAL SUPPLEMENTAL An EXTENDED REPORTING PERIOD, described below, ~ill be provided if this policy is cancelled or nonrene~ed, except for nonpayment of premium, or if WE renew or replace coverage with insurance that: a. 'Has a retroactive date later than the date shown in the Declarations of this policy; or b. ,Provides coverage on other than a Claims ~Made basis. 1. A BASIC EXTENDED REPORTING PERIOD is autGmatically provided without additional charge. This period begins at the end of the POLICY PERIOD and lasts for sixty (60) days. The BA,SlC EXTENDED REPORTING PERIOD doels not apply to CLAIMS covered under any subsequent policy. 2. Coverage for an optional SUPPLEMENTAL EXTENDED REPORTING PERIOD must be adored bY endorsement and an additional prei-nium charge must be paid. Such period sta,Cts Sixty (60) days after the end of the POLICY PERIOD. 3. ThC INSURED, subject to the terms and conditions set forth herein, shall have a one-time option to elect the period of time for which the SUPPLEMENTAL EXTENDED REPORTING PE,~,IOD shall apply, which in no event shall exdeed thirty-six (36) months. WE will determine the additional premium in accordance with OUR rules and rates. In doing so, WE may take into account the following: a. The exposures insured; b. Previous types and amounts of insurance; POF 2b (5/99) 6 of 11 c. Limits of insurance available under this policy for future payment of losses; and d. Other related factors. The additional premium for a one, two or three year SUPPLEMENTAL EXTENDED REPORTING PERIOD will not exceed 75%, 125% or 150%, respectively, of the Annualized Policy Premium. The SUPPLEMENTAL EXTENDED REPORTING PERIOD ENDORSEMENT shall include a provision to the effect that the insurance afforded for CLAIMS first received during such period is excess over any other valid and collectible insurance available under policies in force after the SUPPLEMENTAL EXTENDED REPORTING PERIOD starts. The right to purchase the SUPPLEMENTAL EXTENDED REPORTING PERIOD shall terminate unless written notice is given to US not later than sixty (60) days after the effective date of cancellation or nonrenewal of this policy. Payment in full of the SUPPLEMENTAL EXTENDED REPORTING PERIOD premium and any outstanding premiums or recoveries owed to US shall be made concurrently with such written notice for such SUPPLEMENTAL EXTENDED REPORTING PERIOD to become effective. The EXTENDED REPORTING PERIODS do not extend the POLICY PERIOD or change the scope of coverage provided. Subject to this policy's terms, limits of liability, exclusions and conditions, this policy is extended to apply to CLAIMS first made against the INSURED during the BASIC EXTENDED REPORTING PERIOD, or, if purchased, the SUPPLEMENTAL EXTENDED REPORTING PERIOD, but only to CLAIMS due to WRONGFUL ACT(S) committed prior to the end of the POLICY PERIOD (but not before the Retroactive Date, if any shown in the Declarations). The EXTENDED REPORTING PERIODS do not reinstate or increase the policy's limits of liability. CLAIMS that are first received and recorded during the BASIC EXTENDED REPORTING PERIOD or the SUPPLEMENTAL EXTENDED REPORTING PERIOD, if it is in effect, will be deemed to have been made on the last day of the POLICY PERIOD. 1 Onc]e in effect, EXTENDED REPORTING PERIODS may not be cancelled and the applicable premium is fully earned. SECTIO~N V -- LIMITS OF LIABILITY Regardless of the number of INSURED(S) under this policy, IJersons or organizations who sustain LOSS from WRONGFUL ACT(S), and/or CLAIM(S) made or SUIT'(S) brought under this policy resulting from WRONGFUL ACT(S), OUR liability is limited as follows: i 1. The:ANNUAL AGGREGATE LIMIT specified in the ~Declarations is the maximum limit of OUR liability for all LOSS arising out of any CLAIM(S) flrst~ made against any INSURED during the PO,LICY PERIOD and reported to US as soon as reasonably possible, but not later than sixty (60) days after the expiration or termination of the POLICY PERIOD. In no event shall OUR liability be increased for any EXTENDED REPORTING PERIOD. 2. SulJject to 1. above, the EACH CLAIM LIMIT specified in the Declarations is the limit of OUR liability for all LOSS ansing out of any one WI~ONGFUL ACT first made against any IN~URED during the POLICY PERIOD and replorted to US as soon as practicable, but not latgr than sixty (60) days after the expiration or termination of the POLICY PERIOD. 3. Sul~ject to the limits of liability stated above, WE shall only be liable to pay for LOSS in excess of the DEDUCTIBLE specified in the Declarations for~each and every CLAIM. In the event WE exlJend funds for LOSS on behalf of the INSURED, WE will be reimbursed for such expenditures up to the amount of the DEiDUCTIBLE specified in the Declarations. Up,On written demand by US, the amount of such DEDUCTIBLE will be payable to US within thirty (3d) days. 4. C~AIMS based on or arising out of the same act or interrelated acts of one or more INSURED(S) shill be considered a single WRONGFUL ACT an~l only one DEDUCTIBLE shall be applicable. The lir~its 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 Decladations, unless the POLICY PERIOD is POF 2b (5/99) 7 of 11 extended after issuance for an additional period of less than 12 months. In that case, the additional period will be deemed part of the preceding period for purposes of determining the limits of liability. SECTION VI -- CONDITIONS 1. ASSIGNMENT. Assignment of interest under this policy shall not bind US unless OUR consent is first endorsed hereon. 2. BANKRUPTCY OR INSOLVENCY. The bankruptcy or insolvency of the INSURED or of the INSURED'S estate shall not relieve US of any of OUR obligations under this policy. 3. CANCELLATION. This policy may be cancelled by the first NAMED INSURED by surrendering this policy to US or any of OUR authorized agents, or by mailing to US written notice stating when thereafter the cancellation shall be effective. This policy may be cancelled by US by mailing to the first NAMED INSURED, at the last mailing address known to US, written notice stating when, not less than ten (10) days for non- payment of premium, or sixty (60) days for any other valid reason, such cancellation shall be effective. The mailing of notice shall be sufficient proof of notice. The time of surrender or the effective date and hour of cancellation stated in the notice shall become the end of the POLICY PERIOD. Delivery of such written notice either by the NAMED INSURED or by US shall be equivalent to mailing. If this policy shall be cancelled by the NAMED INSURED, WE shall retain the customary short rate proportion of the premium hereon. Payment or tender of any unearned premium by US shall not be a condition precedent to the effectiveness of cancellation, but such payment shall be made as soon as practical. If the period of limitation, relating to the giving of notice is prohibited or made void by any law controlling the construction thereof, such period shall be deemed to be amended to be equal to the minimum period or limitation of such law. 4. 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 tills policy or estop US from asserting any righ~ under the terms of this policy, nor shall the ter~s of this policy be waived or changed, except by endorsement issued and made a part of t;~is policy. 5. CONFLICTING LAW. Terms of this policy that are lin conflict with the law of the state wherein this policy is issued are hereby amended to conform to such law. 6. EXAMINATION OF BOOKS AND RECORDS. WE may examine and audit the INSURED'S books and records as they relate to this policy, at ahy time during the POLICY PERIOD, and up to three years afterward. 7. INSPECTIONS AND SURVEYS. WE have the righ!, but are not obligated to: a. Make inspections and surveys at any time; b. Give the INSURED reports on the conditions YVE find; and c. ',Recommend changes. Any I inspections, surveys, reports or recomrdendations are related only to insurability and the pre~'niums to be charged. WE do not make safety inspections. WE do not undertake to perform the dut~ of any person or organization to provide for the health or safety of workers or the public. WE do not war~ant that conditions: a. IAre safe or healthful; Or b. Comply with laws, regulations, codes or istandards. 2. INS~URED'S DUTIES IN THE EVENT OF A LOSS, CLAIM OR SUIT. a. In the event of a LOSS written notice !containing particulars sufficient to identify ~the INSURED and also reasonably Iobtainable information with respect to the "time, place and circumstances thereof, and the names and addresses of the injured and =of available witnesses, shall be given by or ~for the INSURED to US or any of OUR authorized agents as soon as reasonably 'possible, but not later than sixty (60) days ~after the expiration or termination of the POLICY PERIOD; POF 2b (5/99) 8 of 11 b. If CLAIM is made or SUIT is brought against the INSURED, the INSURED shall immediately forward to US every demand, ~'-~' notice, summons or other process received by the INSURED; c. The INSURED shall cooperate with US and, at OUR request, consent to being examined and questioned by OUR representative, under oath if necessary, attend hearings, depositions and trials and shall assist in effecting settlement, securing and giving evidence, obtaining the attendance of witnesses and in the conduct of SUIT(S), as well as in the giving of a written statement or statements to OUR representatives and defense. In the event of a CLAIM occurring that is likely to involve US hereunder, the INSURED shall not make any payment, assume any liability or incur any expense, including but not limited to LOSS ADJUSTMENT EXPENSE, without OUR consent first being obtained. WE shall have full discretion in the handling of any CLAIM, and the INSURED shall give full information and assistance as WE may reasonably require. 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 unless there has been compliance with all policy terms. A person or organization may sue US to recover on an agreed settlement or on a final judgment against an INSURED obtained after an actual trial; but WE will not be liable for LOSSES that are not payable under the terms of this policy or that are in excess of the applicable limit of liability. An agreed settlement means a settlement and release of liability signed by US, the INSURED and the claimant or the claimant's legal representative. 4. NONRENEWAL. If WE elect not to renew this policy, WE will mail or deliver to the first NAMED INSURED specified in the Declarations, written notice of such nonrenewal. Such written notice will be mailed not less than (60) days prior to the exp!ration date of this policy. If mailed, proof of mailing will be sufficient proof of notice. 5. NOTICE OF CLAIM. a. ilf, during the POLICY PERIOD or the EXTENDED REPORTING PERIOD, the 'INSURED receives written notice from any iparty that it is the intention of such pady to 'hold the INSURED responsible for any ~WRONGFUL ACT(S) or the INSURED becomes aware of any occurrence that may subsequently give rise to a CLAIM for any !alleged WRONGFUL ACT, the INSURED !shall give written notice to US of the receipt ~of such written notice or awareness of an 'occurrence, as soon as reasonably possible, 'but not later than sixty (60) days after the ;expiration or termination of the POLICY PERIOD. Any CLAIM(S) made against the 'INSURED arising out of such WRONGFUL 'ACT(S) shall, for the purpose of this policy, be treated as a CLAIM made during the 'POLICY PERIOD in which such notice was 'given, or, if given during the EXTENDED 'REPORTING PERIOD, as a CLAIM made ~during the last POLICY PERIOD; b. iFor the purpose of the above clause, notice the ~to designee named under Item 6. of the Declarations shall constitute notice to the ~INSURED; c. 'In the event of any CLAIM occurring hereunder, notice to US shall be given to the ~person or firm(s) specified under Item 7. of '~the Declarations. Notice shall be deemed to be received if sent by prepaid mail, properly ! add ressed. 6. OTHER INSURANCE. The insurance afforded by 'this policy is primary insurance, except if other valid and collectible insurance is available to the INSURED for a CLAIM presented or when sta~ed to apply in excess of or contingent upon the absence of other insurance. When this insturance is primary and the INSURED has other insurance that is stated or found to be applicable to the LOSS on an excess or contingent basis, the amount of OUR liability under this policy shall not be reduced by the existence of such other insurance. POF 2b (5/99) 9 of 11 When this insurance is excess, WE will have no duty to defend any CLAIM or SUIT that any other insurer has a duty to defend. If no ether insurer defends, WE will undertake to do so, but WE will be entitled to the insured's rights against all other insurers. When this insurance is excess over other insurance, WE will pay only OUR share of the amount of the LOSS, if any, that exceeds the sum of: a. The total amount that all such other insurance would pay for the LOSS in the absence of this insurance; and b. The total of all DEDUCTIBLE and self- insured amounts under all such other insurance. When both this insurance and other insurance apply to the LOSS on the same basis, whether primary, excess or contingent, WE shall not be liable under this policy for a greater proportion of the LOSS than that stated in the applicable contribution provision below: a. CONTRIBUTION BY EQUAL SHARES. If all other valid and collectible insurance provides for contribution by equal shares, WE will follow this method also. Under this provision, each insurer contributes equal amounts until it has paid its applicable limit of liability or none of the LOSS remains, whichever comes first. b. CONTRIBUTION BY LIMITS. If any of the other insurance does not provide for contribution by equal shares, WE will contribute by limits. Under this provision, each insurer's share is based on the ratio of its applicable limit of liability to the total applicable limits of liability of all insurers. PUBLIC ENTITY AUTHORIZATION CLAUSE. By acceptance of this policy, the NAMED INSURED agrees to act on behalf of each INSURED with respect to the giving and receiving of notice of CLAIM, cancellation or nonrenewal, the payment of premiums that may become due under this policy; and each INSURED agrees that the NAMED INSURED shall act on their behalf. REPRESENTATION. YOU agree: a. By accepting this policy, The application for insurance completed in solicitation of this insurance is made a part '.of this policy as though set forth in full herein; b. The statements in the Declarations and 'application for insurance are accurate and ,complete and are deemed material to the ,acceptance of the risk or the hazard ~assumed by US under this policy; iThose statements are based C. upon representations YOU made to US; d iWE have issued this policy in reliance upon 'YOUR representations; and e. In the event the application either states or ~fails to state facts materially affecting the risk or hazard assumed by US under this policy, this policy in its entirety shall be void ~,and of no effect whatsoever. 4. sEPARATION OF INSUREDS. Except with resl~ect to the limits of liability, and any rights or duti~es~ specifically assigned in this policy to the first' NAMED INSURED, this insurance applies: a. 'As if each NAMED INSURED were the only ,NAMED INSURED; and b. !Separately to each INSURED against whom CLAM is made or SUIT is brought. 5. SE~TTLEMENT. WE shall not settle any SUIT without the INSURED'S consent. If, however, theI INSURED refuses to Consent to any settlement offer received by US, and shall elect to ~ontest the CLAIM or continue any legal pro~:eedings in connection with such CLAIM, OUR liability to indemnify and/or defend the IN~URED for the CLAIM shall not exceed the amount for which the CLAIM could have been so set~led~ plus LOSS ADJUSTMENT EXPENSE incurred up to the date of such refusal after a written tender of such an offer has been made by US to the INSURED. 6. TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US. If the INSURED 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 POF 2b (5/99) 10 of 11 nothing after LOSS to impair them. At OUR request, the INSURED will bring SUIT or transfer those rights to US and help US enforce them. YOUR RIGHT TO CLAIM AND POTENTIAL CLAIM INFORMATION. WE will provide the first NAMED INSURED specified in the Declarations the following information relating to this and any preceding Public Officials Liability Coverage Form WE have issued to YOU during the previous three years. a. A list or other record of each notice of occurrence that might give rise to a CLAIM, not previously reported to any other insurer, of which WE were notified in accordance with paragraph 11.a. of this Section. WE will include the date and brief description, if that information was in the notice WE received. b. A summary by policy year, of payments made and amount reserved, stated separately, under any applicable ANNUAL AGGREGATE LIMIT. Amounts reserved are based on OUR judgment. They are subject to change and are not to be regarded as ultimate settlement values. If WE cancel or elect not to renew this policy, WE~ will provide such information no later than thirty (30) days before the date of policy termination. In other circumstances, WE will prov~ide this information only if WE receive a written request from the first NAMED INSURED witl~in sixty (60) days after the end of the POLICY PERIOD. In this case, WE will provide this~ information within forty-five (45) days of recbipt of the request. WE~: compile CLAIM and potential CLAIM information for OUR own business purposes and exercise reasonable care in doing so. In pro?iding this information to the first NAMED INS~URED, WE make no representations or warranties to insureds, insurers, or others to whdm this information is furnished by or on behalf of any INSURED. Cancellation or nonrenewal will be effective even if WE inadvertently provide inaccurate information. POF 2b (5/99) 11 of 11 I 'emeee DISCLOSURE FORM IMPORTANT NOTICE TO POLICYHOLDER CLAIMS-MADE PROFESSIONAL LI ~ABILITY POLICY THIS DISCLOSURE FORM IS NOT YOUR POLICY. IT MERELY DESCRIBES SOME OF THE MAJOR FEATURES OF OUR CLAIMS-MADE POLICY FORM. READ YO~JR POLICY CAREFULLY TO DETERMINE RIGHTS, DUTIES, AND WHAT IS AND IS NOT COVERED. ON, LY THE PROVISIONS OF YOUR POLICY DETERMINE THE SCOPE OF YOUR INSURANCE PROTECTION. Your policy is a claims-made policy. It applies only to claims made against you after the inception date and before the end of the policy period involving acts, errors, omissions or personal injuries that occur after the policy retroactive date. Upon termination of your policy, an extended reporting pedod may be available. OCCURRENCE VS. CLAIMS-MADE There is no difference in the kinds of claims covered by either an "Occurrence" policy or a "claims-made" policy. Claims for damages may be assigned to different policy periods, h(~wever, depending on which policy you have purchased. In an "occurrence" policy, coverage is provided for liability because (~f acts that occur during the policy period, no matter when the claim is made. In your "claims-made" policy, coverage is provided for liability if the claim for damages is first made and reported during the policy period. The claim must be a demand for damages by an injured party but it does not have to be in writing. Under most circumstances, a claim is considered made when another claim for the same act has already been made, or when the claim is received and recorded during an extended reporting period. PRINCIPAL BENEFITS This policy provides coverage for professional liability up to the maximum dollar limit specified in the policy. The principle benefits and coverages are explained in detail in your claims-made policy. Please read it carefully and consult your agent about any questions you might have. EXCEPTIONS, REDUCTIONS AND LIMITATIONS Your claims-made policy contains certain exceptions, reductions and limitations. Please read them carefully and consult your agent about any questions you might have. RENEWALS AND EXTENDED REPORTING PERIODS Your claims-made policy has some unique features relating to renewal, extended reporting periods, and coverage of occurrences with long periods of exposure. These special claims-made provisions are described below: POF 24a (5/99) Page 1 of 2 Special "Claims-Made" Prowsions Two concepts relating to continuity of coverage under the %laims-made" policy are especially important to understand. These involve the Retroactive Date and the Extended Reporting Period. RETROACTIVE DATE When you have a Retroactive Date on the policy, there is no coverage for acts, errors, omissions or personal injuries that occurred before the Retroactive Date, even if the claim is first made during the policy period. If there is no Retroactive Date on the policy, the policy will respond oniy to claims first made and reported during the policy period for covered claims, no matter when the acts occurred. '~ But if previous insurance also applies to the claims, your "claims-made" policy will be excess--that is, it will apply only after that previous insurance is used up. If there is a Retroactive Date, it cannot be moved ahead in time, except under certain circumstances and with your written consent. Examples of such circumstances include, but are not limited to, the changing of insurers; a substantial change in your operations that increases your exposure to loss; failure to provide us with information you knew about the nature of your business or premise, and only with you~ written consent, it is important to understand how the "claims-made" policy's extended reporting period guarantee~ continuity of coverage if you are offered a renewal or replacement policy with a later Retroactive Date than the once in your current policy. EXTENDED REPORTING PE~RIOD WARNING If a claim is made after the termination of your "claims-made" policy, you may not have coverage for that claim unless you purchase an Extended Reporting Period endorsement, which must be offered to you with at least the aggregate limit of your terminated policy, for at least one year, at a premium dot to exceed 150% of your terminated policy premium. Carefully review the policy provisions regarding the available extended reporting period, especially the length of coverage and price, and the time during which you must purchase or apcept any offered extended reporting period. NOTICE: DEFENSE COSTS ARE IN ADDITION TO THE CLAIMS-MADE LIMITS OF LIABILITY POF 24a (5/99) Page 2 of 2 ENDORSEMENT NO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. REINSTATEMENT OF AGGREGATE LIMIT Subject to the terms and conditions otherwise applicable to the policy, if, in the event of termination of this insurance, the INSURED elects to pumhase an EXTENDED REPORTING PERI,OD, then the INSURED shall have the right to elect reinstatement of the aggregate limit shown in the Declarations, if such aggregate shall have become impaired as a result of CLAIMS made against the INSURED. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED POF 39a (5/99) AUTHORIZED REPRESENTATIVE DATE ENDORSEMENT NO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. EXCLUSION KNOWLEDGE OF WRONGFUL ACTS PRIOR TO THE POLICY PERIOD This endorsement mod f es insurance provided under the following: PUBLIC OFFICIALS LIABILITY COVE~RAGE FORM The following EXCLUSION is added to SECTION II COVERAGES, EXCLUSIONS: This insurance does not apply to and WE shall not be obligated either to make any payment or to defend any SUIT in connection with any CLAIM or SUIT made against the INSURED arising out of: 1. Any WRONGFUL ACT(S) that takes place prior to the POLICY PERIOD if the INSURED had knowledge of circumstances which could reasonably be expected to give rise to a CLAIM; or 2. Any LOSS for which the INSURED is entitled to indemnity or pa~/ment by reason of having given notice of any circumstances that might give rise to a CLAIM under any other policy or policies. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE POF 70a (5/99) ENDORSEMENTNO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. : THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. EXCLUSION -- FAILURE TO MAINTAIN INSURANCE This endorsement modifies insurance provide~i under the following: PUBLIC OFFICIALS LIABILITY COVERAGE FORM The following EXCLUSION is added to SECTION II- COVERAGES, EXCLUSIONS: This insurance does not apply to and WE shall not be obligated either tb make any payment or to defend any SUIT in connection with any CLAIM or SUIT made against the INSURED arising out of any failure on the part of any INSURED to purchase or maintain insurance. ~ INSURANCE includes, but is not limited to, coverage or benefits provided by self-insurance arrangements, pools, self-insurance trusts, captive insurance companies, retention groups; reciprocal exchanges, or any other plan or agreement of risk transfer or assumption. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE POF 62a (5/99) ENDORSEMENTNO, ATTACHED TO AND ENDORSEMENT ~-~-~CTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. THIS ENDORSEMENT CHANGES THE POLICY. PL ~EASE READ IT CAREFULLY. EXCLUSION--FNANCIALLOSS This endorsement modifies insurance provide,d under the following: PUBLIC OFFICIALS LIABILITY COVE, RAGE FORM The following EXCLUSION is added to SECTION II -- COVERAGES, EXCLUSIONS: '1. This insurance does not apply to and WE shall not be obligated ~ither to make any payment or to defend any SUIT in connection with any CLAIM or SUIT made against the INSURED directly or indirectly arising from: 2. The purchase, offering, sale, administration, diminution of valuel yield income, or failure to comply with any obligation of any type of security, bond, or debenture; 3. The use, misuse, management, mismanagement, loss of, or failure to return, any monies (including funds, grants and appropriations) including any breach of or failure to satisfy and duty or obligation if such failure or breach is caused by the use, misuse, management, mismanagement, loss of, or failure to return any such monies; 4. The formulation of tax rates, the collection of taxes and/or the disbQrsement of tax refunds; or 5. Any misappropriation and/or impreper distribution of taxes. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED POF 63a (5/99) AUTHORIZED REPRESENTATIVE DATE ENDORSEMENT NO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. EXCLUSION -- INSURANCE PRACTICES This endorsement modifies insurance provided under the following: PUBLIC OFFICIALS LIABILITY COVERAGE FORM The following EXCLUSION is added to SECTION II --COVERAGES, EXCLUSIONS: This insurance does not apply to and WE shall not be obligated either !o make any payment or to defend any SUIT in connection with any CLAIM or SUIT made against the INSURED arising out of: 1. Actual or alleged cancellation or non-renewal of any insurance; " 2. Actual or alleged failure or refusal to pay insurance benefits or prodeeds; 3. Actual or alleged delay in the payment of benefits under anyinsura,nce c°ntract; 4. Actual or alleged lack of good faith or fair dealing or other breach of any duty in the processing or handling of any insurance claim, or the brokering, procuring or underwriting of insu~'ance; or 5. Any INSURED acting in the capacity of an insurance agent, intermediary or broker in the negotiation, placement or maintenance of any insurance contract. For purposes of this exclusion, the term INSURANCE included any ~nsurance policy, reinsurance, bond, indemnity agreement, annuity, endowment, pension contract, risk management or insurance program, pool or trust, or any similar program. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE POF 64a (5/99) ENDORSEMENT NO, A'CI'ACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. EXCLUSION -- SECURITIES/BONDS This endorsement modifies insurance provide~ under the following: PUBLIC OFFICIALS L ABILITY covERAGE FORM The following EXCLUSION Es added to SECTION II- COVERAGES, EXCLUSIONS: This insurance does not apply to and WE shall not be obligated either to make any payment or to defend any SUIT in connection with any CLAIM or SUIT made against the INSURED arising out of the purchase, offering, sale or administration of any type of security, bond, or debenture. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED POF 65a (5/99) AUTHORIZED REPRESENTATIVE DATE ENDORSEMENT NO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) i INSURED AGENCY AND CODE POLICY NUMBER MO, DAY YR. 12:01 NOON A.M, THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. CHANGE ENDORSEMENT EXCLUSION -- PERSONAL INJURY EXCLUSION REDEFINED This endorsement modifies insurance provided under the following: PUBLIC OFFICIALS LIABILITY COVERAGE FORM SECTION II -- COVERAGES, EXCLUSIONS is amended as follows: EXCLUSION 4. is deleted in its entirety and replaced with the following: 4. For false arrest, detention or imprisonment, libel, slander, or other defamatory or disparaging material, wrongful eviction from, wrongful entry into or invasion of the right of pr rate Occupancy of a room, dwelling or premises that a person occupies by or on behalf of its owner, landlord or lessor, assault, battery, malicious prosecution or false or improper service of process. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE POF 48a (5/99) ENDORSEMENTNO. A']q'ACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON i A.M. THIS ENDORSEMENT CHANGES THE POLICY. PLC:ASE READ IT CAREFULLY. ENHANCED EMPLOYMENT LIABILITY ~ENDORSEMENT This endorsement modifies insurance provided under the following: PUBLIC OFFICIALS LIABILITY COVERAGE FORM As respects to any CLAIM or LOSS arising out of only Employment Claims, Exclusion 3. is deleted and replaced by the following: ~ 3. For any LOSS, whether direct, indirect, or consequential, arising from or caused by: a. Death of any person; ' b. Any obligation of the INSURED under a Worker's Compensation, disability benefits or unemployment compensation law or any similar law; or I c. For LOSS to or destruction of any property, tangible or intangible, including diminution of value Or loss of use. For the purposes of this endorsement only, EMPLOYMENT CLAIMS means any CLAIM by any employee arising out of employee hiring, advancement, remuneration, treatment, condition or termination of employment. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE POF 32b (5/99) ENDORSEMENT NO. A'CrACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) ~ INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. ~, THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. WAR OR TERRORISM EXCL0SlON This endorsement modifies insurance provided under the following: PUBLIC OFFICIALS LIABILITY COVERAGE FORM This following EXCLUSION is added to SECTION II - COVERAGES, EXCLUSIONS: WAR OR TERRORISM This insurance does not apply to and WE shall not be obligated either to make any payment or to defend any SUIT in connection with any CLAIM or SUIT made against the INSURED arising, directly or indirectly, out of: 1. War, including undeclared or civil war; or 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; or 4. TERRORISM, including any action taken in hindering or defending against an actual or expected incident of TERRORISM regardless of any other cause or event that contributes concurrently or in any sequence to the injury or damage. However, with respect to TERRORISM, this exclusion only applies if one or more of the following are attributable to an incident of TERRORISM: POF 150 (11/01) 1. The total of insured damage to all types of ~property exceeds $25,000,000. In determining whether the $25,000,000 threshold is exceeded, we will include all ~insured damage sustained by property of all persons and entities affected by the TERRORISM and business interruption flosses sustained by owners or occupants of the damaged property. For the purpose of this provision, insured damage means damage that is covered by any insurance plus 'damage that would be covered by any 'insurance but for the application of any terronsm exclusions Or 2. Fifty or more persons sustain death or serious 'physical injury. For the purposes of this ,provision, serious physical injury means: 'a. Physical injury that involves a substantial ~ risk of death; or lb. Protracted and obvious physical i disfigurement; or c. Protracted loss of or impairment of the I function of a bodily member or organ; or 3. 'The TERRORISM involves the use, release or !escape of nuclear materials, or directly or ~indirecfiy results in nuclear reaction or ~ radiation or radioactive contamination; or Page 1 of 2 includes copyrighted material of Insurance Serv ces Office, Inc., with its Copyr ght, nsurance Services Office, Inc., 2001 permission. 4. The TERRORISM is carried out by means of the dispersal or application of pathogenic 0¢ poisonous biological or chemical materials; or 5. Pathogenic or poisonous biological or chemical materials are released, and it appears that one purpose of the TERRORISM was to release such materials. Paragraphs 1. and 2., immediately preceding, describe the thresholds used to measure the magnitude of an incident of TERRORISM and the circumstances in which the threshold will apply for the purpose of determining whether the Terrorism Exclusion will apply to that incident. When the Terrorism Exclusion applies to an incident of TERRORISM, there is no coverage under this Coverage Part. In the event of any incident of TERRORISM that is not subject to the Terrorism Exclusion, coverage does not apply to any loss or damage that is otherwise excluded under this Coverage Part. Multiple incidents of TERRORISM which occur within a seventy-two hour period and appear to be carried out in concert or to have a related purpose or common leadership shall be considered to be one incident. B. The following definition is added to SECTION I -- DEFINITIONS: TERRORISM means activities against persons, organizations or property of any nature: I. 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; C. Commission or threat of an act that interferes with or disrupts an electronic, 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. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE POF 150 (11/01) Page 2 of 2 Includes copyrighted material of Insurance Serv ces Off ce, nc., w~th ~ts perm~ss on. Copyright, Insurance Services Office, Inc., 2001 ENDORSEMENTNO. ATTACHED TO AND ENDORSEMENT EFFECTIVE ~ FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO, DAY YR. 12:01 NOON A,M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. EXCLUSION -- ACTIVITIES OF ANY LAW ENFORCEMENT AGENCY ' ' f Ilowm This endorsement modifies insurance provide(] unoer the o ' g PUBLIC OFFICIALS LIABILITY COVE~ RAGE FORM SECTION II -- COVERAGES, EXCLUSIONS is amended as follows: EXCLUSION 5. is deleted in its entirety and replaced with the followingI 5. Arising from the activities of any law enforcement agency or law enforcement personne, including the operation of adult juvenile detention facilities, except as respects to iany CLAIM or LOSS arising out of only EMPLOYMENT CLAIMS. For the purposes of this endorsement only, EMPLOYMENT CLAIMS means any CLAIM by any employee arising out of employee hiring, advancement, remuneration, treatment, condition dr termination of employment. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED POF 49a (5/99) AUTHORIZED REPRESENTATIVE DATE