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Home My WebLink About000101.tiff LLOYD'S COVER NOTE Name of Assured Colorado Counties Casualty and Property Pool 1177 Grant Street Denver, CO 80203 �LA'MS MIRE In the event of claim under this cover note, please notify: TNR-ENATION4 Cal RISK SERF INTERNATIONAL SPECIAL RISK SERVICES, INC. 10 Gould Center Rolling Meadows, Illinois 60008 (312) 640.8500 Broker _ This insurance effected with certain UNDERWRITERS AT LLOYD'S, LONDON (not incorporated) • IMPORTANT IN THIS OcR°CE.THEVER OTE CANNASSURED IISSTREQUESTEDBE LLED FLAT.EARNED TO READ THIS COVEREMIUM MUST BE PAID FOR THE TIME NO E, AND IF INCORRECT,, RETURN IT IRANCE HAS I BEEN IMMEDIATELY FOR ALTERATION. _ 101 Eason Printing Co.Chicago . Form CN-1 This cover note is evidence that in accordance with your instructions and acting on your behalf we have procured from certain Underwriters at Lloyd's, London, herein after referred to as the Underwriters, the coverage described on the attached declaration page. This cover note is subject to all the terms and conditions of the policy to be issued and shall be automatically terminated and voided by delivery of said policy to the Insured. Short Rate Cancellation Table For Term of One Year Oa s Per Cent Oa s _ Per Cent y of y of Policy One Year PFory One Year Force premium �°Force Premium 1 5% 154.156 53% 2 6 15]160 54 3- COVER NOTE PROVISIONS 1. If the Assured shall make any claim knowing the same to be false or fraudulent, as regards amount or otherwise, this cover shall become void, and all claims +hereunder shall be forfeited. 2. This cover note may be cancelled on the customary short rate basis by the Assured at any time by written notice or by surrender of this cover note to the Broker. This cover note may also be cancelled, with or without the return or tender of the unearned premium, by the Broker,in their behalf, by delivering -- to the Assured, or by sending to the Assured by mail, registered or unregistered, at the Assured's address as shown herein, not less than five days' written notice, stating when the cancellation shall be effective, and in such case the Underwriters shall refund the paid premium less the earned portion thereof on demand, subject always to the retention by the Underwriters hereon of any minimum premium stipulated herein (or proportion thereof previously agreed upon) in the event of cancellation either by the Underwriters or the Assured. 3. SERVICE OF SUIT. It is agreed that in the event of the failure of Underwriters hereon to pay any amount claimed to be due hereunder, Underwriters here- on, at the request of the Assured, will submit to the jurisdiction of any Court of competent jurisdiction within the United States and will comply with all requirements necessary to give such Court jurisdiction and all matters arising hereunder shall be determined in accordance with the law and practice of such Cour+. It is further agreed that service of process in such suit may be made upon the firm named in item 6 of the attached declaration page, and that in any suit instituted against any one of them upon this contract, the Underwriters will abide by the final decision of such Court or of any Appellate Cour+ in the event of an appeal. The above-named are authorised and directed to accept service of process on behalf of the Underwriters in any such suit and/or upon the request of the insured (or reinsured) to give a written undertaking to the insured (or reinsured) that they will enter a general appearance upon the Underwriter's behalf in the event such a suit shall be institued. Further, pursuant to any statute of any state, territory or district of +he United States which make provision therefor, the Underwriters hereby designate the Superintendent, Commissioner or Director of Insurance or other officer specified for that purpose in the statute, or his successor or succesors in office, as their true end lawful attorney upon whom may be served any lawful process in any action, suit or proceeding instituted by or on behalf of the Insured (or reinsured) or any beneficiary hereunder arising out of this contract of insurance (or reinsurance), and hereby designate the above-named as the person to whom the said officer is authorized to mail such process or a true copy thereof. 4. It is expressly understood and agreed by the Assured by accepting this instrument that the Broker, is not an Assurer hereunder and that the Broker, neither is nor shall be in any way or to any extent liable for any loss or claim whatever, but that the Underwriters hereunder are those as.shown elsewhere in this cover note. 5. The Assured shell immediately report to the Broker, any occurrence likely to result in a claim under this cover note, and shall also file with the Broker, detailed sworn proof of interest and loss within sixty days from the date of loss. Failure by he Assured either to report the said loss or damage or to file such written proof as above provided, shall invalidate any claim under this cover note. 6. All adjusted claims shall be paid or made good to the Assured within thirty days after presentation and acceptance of satisfactory proofs of interest and loss at the office of the Broker. - 7. Loss, if any, to be payable in United States Currency. 6. This cover note does not cover loss or damage directly or indirectly occasioned by, happening through or in consequence of war, invasion, acts of foreign enemies, hostilities (whether war be declared or not), civil war, rebellion, revolution, insurrection, military or usurped power or confiscation or nationalization or requisition or destruction of or damage to property by or under the order of any government or public or local authority. 9. This insurance is made and accepted subject to all the provisions, conditions and warranties se+ forth herein or endorsed hereon or appearing on the reverse side hereof, all of which are to be considered as incorporated herein. 10. This insurance is subject to all provisions of this cover note, whether printed,typed, added by endorsement, or appearing in forms attached or incorporated by reference. Provisions added by endorsement or forms attached or incorporated by reference supersede any inconsistent printed or typed provisions in this cover note. 11. This cover note shall not be assigned either in whole or in part, without the written consent of the Broker endorsed hereon. 12. This cover note shall not be valid unless signed by the Broker. October 6, 1987 GHV 737/286/2 ISL 3513 THIS DECLARATION PAGE IS ATTACHED TO AND FORMS PART OF COVERNOTE PROVISIONS (FORM CN-1) ITEM NUMBER I S L 3799 • Name of Assured Colorado Counties Casualty and Property Pool • 1177 Grant Street • Denver, CO 80203 CLAIMS MADE • • • EFFECTIVE 12:01 A.M. BOTH DAYS AT 2 FROM 12:00 NOON STANDARD TIME July1, 1987 TO July 1, 1988 NAME OF INSURERS AMOUNT OR PERCENT Acting upon your instruction, we have effected the insurance with: . UNDERWRITERS AT LLOYD'S, LONDON 100% 3 • _ pg.J C�IFI�D�0PY i/ic:iX��v , • !AUTHORIZED REPRESFNTATIVEI r/ • AMOUNT COVERAGE RATE PREMIUM Hereon: 100% Thissontract Is registered and delivered as a Excess All Risks Including surplus ,, coy age u de S_urpl Lines $22,265.00 Casualty, Medical Payments, Crime InsL eriLK A Fidelity and Errors and OmissionsLf as per attached forms. l/ L.S. M.77 ,C:A SURPLL'i ?t iE loKER S.L. TAX:a , lJ 4775- AUDIT F _ _ P01 1J/ AL CHARGED SPECIAL CONDITIONS THIS INSURANCE. 'SAS P'=},,,! PLACED V.T I As per attached forms attached - AN INSURER THAT IS NOT LICENSED L Y 5 NMA1256 THIS STATE. IN CASE CF INS0LV_NCf, NMA1998 PAYMENT OF CLAIMS MAY NOT EE GUARANTEED. EED. Service of Suit Clause 6 Lord, Bissell & Brook, 115 South LaSalle Street, Chicago, IL 60603 or Mendes & Mount, 3 Park Avenue, New York, NY 10016 Rolling Meadows, IL 6th October oW In witness.whereof this covern hhasbeen signed at this day of THE INSURANCE COMPANY IN WHIC:I THIS COVERAGE IS PLACED IS PL'TrIDO:ZEDTv IPJANS ' .' S'NE3u IN THE STATE¢r2''Z TIE ?Ei Y ; ;C: "iS,URED International Special Risk Services, Inc. tl ..IS LecoED CU(THE C ,:n, i3 EC,'�A LICENSED CARRIER IN"t'.:>7 THUS POLICY AND Ti! THERE;N MUST 2E PROPER I2 C _-E',13 n ' c' ,c LerIEs mr.,K TO - , THE If hR ac I:_ ir t FI z si- FRGFER FILINGS MJ4 uE 2:, _. A.,D.�iin•LLa Lrv.,-is TA,hs By £,� / , z,,,,/� MUST BE Fafi)BY A SURi'N3 LINES BROKER IN THE Eason Pnn5SAiEg.Chicago DROP DOWN FORM 1986 Whereas the Assured has (1) All Risks of Physical Loss or Damage cover with Hartford Fire Insurance for $50,000,000 each and every loss and/or occurrence excess of $500,000 each and every loss and/or occurrence and (2) Underlying insurances for up to $350,000 each and every loss and/or claim(s) including costs involved in suit(s) brought in connection therewith excess of $150,000 each and every loss and/or claim(s) including costs involved in suit(s) brought in connection therewith covering All Risks of Physical Loss or Damage, Casualty Medical Payments, Crime, Fidelity and Errors and Omissions (both of which policies warranted maintained in force throughout the currency of this policy) . This insurance is to pay up to $650,000 each and every loss and/or claim(s) including costs involved in suit(s) brought in connection therewith but only if the same loss and/or claim(s) including costs involved in suit(s) brought in connection therewith includes a Casualty and/or Medical Payments and/or Crime and/or Fidelity Loss in addition to a Physical Damage Loss and then only if this combined loss and/or claim(s) including costs involved in suit(s) brought in connection therewith exceeds $500,000. This policy will then pay the difference between the primary $500,000 Ultimate Net Loss (Physical Damage or combined Physical Damage and Casualty Loss) and the actual combined loss and/or claim(s) including costs involved in suit(s) brought in connection therewith (up to a further limit of $650,000 Ultimate Nett Loss but not exceeding the sum of the applicable limits as detailed below) . The Underlying Combined Policy contains the following sub limits: Medical Payments: $ 5,000 any one person/$100,000 any one loss All Third Party: $400,000 any one claim Public Liability/Property Damage but $1,000,000 in the aggregate annually in respect of Errors and Omissions. Money and Securities: $150,000 each and every loss Employee Fidelity: $150,000 each and every loss IT IS UNDERSTOOD AND AGREED that Claims and Servicing will be by Gallagher Bassett Services Inc. ULTIMATE NET LOSS The words "ultimate net loss" in respect of Physical Loss or Damage shall mean the loss sustained by the Assured as a result of the happening of the risks covered by this Insurance after making deductions for all recoveries and other valid and collectible insurance, excepting however, the Policy/ies of the Primary Insurers, and in respect of Liability Coverage hereon ultimate net loss shall be as defined in the Primary Policy. Page 1 of 2 CANCELLATION This insurance may be cancelled as of any anniversary date by either of the parties upon written notice to the other party, provided said notice is issued at least ninety (90) days prior to the said anniversary. NOTWITHSTANDING the aforementioned to the contrary, in the event of non-payment of premium by the Assured, Underwriters will give 10 (ten) days notice of cancellation in writing to the Assured and all coverage will terminate 10 (ten) days after the mailing of such notice. 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 so as to be equal to the minimum period of limitation permitted by such law. No cancellation or termination of this policy, as an entirety, whether by or at the request of the Named Assured or by the Underwriters shall take effect prior to the expiration of ninety (90) days after written notice of such cancellation or termination is sent by registered mail to the Commissioner of Insurance, State of Colorado, First Western Plaza, 303 W. Colfax Avenue, Suite 500, Denver, Colorado 80204, unless an earlier date of such cancellation or termination is approved by said Commissioner of Insurance, State of Colorado. ATTACHING TO AND FORMING PART OF COVER NOTE NO. ISL 3799 DATED: 6th October, 1987. INTERNATIONAL SPECIAL RISK SERVICES,/ , INC. BY /—eu� . ��vt �'4-� mac/ OCT 1 Z1987 Page 2 of 2 ! S.R.S./FC 0416W ENDORSEMENT attaching to and forming part of Policy No. ISL 3799 in the name of COLORADO COUNTIES CASUALTY AND PROPERTY POOL Effective date of this endorsement is July 1, 1987 Endorsement No. 1 It is understood and agreed that the participating member counties hereunder are as follows: - ALAMOSA LAKE TELLER ARCHULETA LA PLATA WASHINGTON BACA LARIMER WELD BENT LAS ANIMAS YUMA CHAFFEE LINCOLN CHEYENNE LOGAN CLEAR CREEK MINERAL CONEJOS MONTEZUMA COSTILLA MONTROSE CROWLEY MORGAN DOLORES OTERO DOUGLAS OURAY EAGLE PARK ELBERT PHILLIPS FREMONT PITKIN GARFIELD PROWERS GILPIN PUEBLO GRAND RIO BLANCO GUNNISON RIO GRANDE HINSDALE ROUTT HUERFANO SAGUACHE JACKSON SAN JUAN KIOWA SEDGWICK KIT CARSON SUMMIT Subject otherwise to all terms, clauses and conditions as heretofore. DATED: 6th October, 1987. INTERNATIONAL SPECIAL/� � RISK OSERVICES, INC. BY � . —� � V /'a t�e-C � c_} 0416W SERVICE OF SUIT CLAUSE (U.S.A.) It is agreed that in the event of the failure of the Underwriters hereon to pay any amount claimed to be due hereunder, the Underwriters hereon, at the request of the Insured (or Reinsured), will submit to the jurisdiction of a Court of competent jurisdiction within the United States. Nothing in this Clause constitutes or should be understood to constitute a waiver of Underwriters' rights to commence an action in any Court of competent jurisdiction in the United States, to remove an action to a United States District Court, or to seek a transfer of a case to another Court as permitted by the laws of the United States or of any State in the United States. It is further agreed that service of process in such suit may be made upon Lord, Bissell & Brook, 115 S. LaSalle St., Chicago, IL 60603 or Mendes & Mount, 3 Park Avenue, New York, NY 10016, and that in any suit instituted against any one of them upon this contract, Underwriters will abide by the final decision of such Court or of any Appellate Court in the event of an appeal. The above-named are authorized and directed to accept service of process on behalf of Underwriters in any such suit and/or upon the request of the Insured (or Reinsured) to give a written undertaking to the Insured (or Reinsured) that will enter a general appearance upon Underwriters' behalf in the event such a suit shall be instituted. Further, pursuant to any statute of any state, territory or district of the United States which makes provision therefore, Underwriters, hereon hereby designate the Superintendent, Commissioner or Director of Insurance or other officer specified for that purpose in the statute, or his successor or successors in office, as their true and lawful attorney upon whom may be served any lawful process in any action, suit or proceeding instituted by or on behalf of the Insured (or Reinsured) or any beneficiary hereunder arising out of this contract of insurance (or insurance), and hereby designate the above-named as the person to whom the said officer is authorized by mail such process or a true copy thereof. NMA 1998 (24/4/86) Form approved by Lloyd's Underwriters' Non-Marine Association. LW 5 01 5C/11/24446 USA. • NUCLEAR INCIDENT EXCLUSION CLAUSE—LIABILITY—DIRECT (BROAD) (Approved by Lloyd's Underwriters'Fire and Non-Marine Association) For attachment to insurances of the following classifications in the U. S. A., its Territories and Possessions,Puerto Rico and the Canal Zone:— Owners, Landlords and Tenants Liability, Contractual Liability, Elevator Liability, Owners or Contractors (including railroad) Protective Liability, Manufacturers and Contractors Liability, Product Liability, Professional and Malpractice Liability, Storekeepers Liability, Garage Liability, Auto- mobile Liability (including Massachusetts Motor Vehicle or Garage Li ins), not bring insurances of the classifications to which the Nuclear Incident Exclusion Clause—Liability—Direct(Limited)applies. This police' does not apply:— I. Under any liability Coverage,to injury,sickness,disease,death or destruction (a) with respect to which an insured under the policy is also an insured under a nuclear energy liability policy issued by Nuclear Energy Lia- bility Insurance Association,Mutual Atomic Energy Liability Under- writers or Nuclear Insurance Association of Canada,or would be an insured under any such policy but for its termination upon exhaustion of its limit of liability; or (b) resulting from the hazardous properties of nuclear material and with respect to which (1) any person or organization is required to main- tain financial protection pursuant to the Atomic Energy Act of 1954, or any law amendatory thereof,or(2)the insured is,or had this pol- icy not been issued would be,entitled to indemnity from the United States of America or any agency thereof,under any agreement en- tered into by the United States of America,or any agency thereof, with any person or organization. II. Under any Medical Payments Coverage, or under any Supplementary Pay- ments Provision relating to immediate medical or surgical relief,to expenses incurred with respect to bodily injury,sickness,disease or death resulting from the hazardous properties of nuclear material and arising out of the operation of a nuclear facility by any person or organization. III. Under any Liability Coverage,to Injury,sickness,disease,death or destruction resulting from the hazardous properties of nuclear material,if (a) the nuclear material (1) is at any nuclear facility owned by,or oper- ated by or on behalf of,an insured or(2)has been discharged ar dis- persed therefrom; (b) 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 (c) the injury, sickness, disease, death or destruction 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,but if such facility is located within the United States of America, its territories or possessions or Canada, this exclusion (c) applies only to injury to or destruction of property at such nuclear facility. IV. As used in this endorsement: "hazardous properties"include radioactive,toxic or explosive properties;'nu- clear material"means source material,special nuclear material or byproduct material;"source material",special nuclear material",and"byproduct meter. LI"have the meanings given them in the Atomic Energy Act 1954 or in any law amendatory thereof; "spent fuel"means any fuel element or fuel compo- nent,solid or liquid,which has been used or exposed to radiation in a nuclear reactor;"waste"means any waste material,(I)containing byproduct material and (2) resulting from the operation by any person or organization of any nu- clear facility included within the definition of nuclear facility under paragraph (a) or (b) thereof; "nuclear facility"means (a) any nuclear reactor, (b) any equipment or device designed or used for (1) separating the isotopes of uranium or plutonium, (2) processing or utilizing spent fuel,or (3) handling,processing or packaging waste, (c) any equipment or device used for the processing,fabricating or alloy- . big 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 236, (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 desired or used to sustain nuclear fission in a self-supporting chain reaction or to contain a critical mass of fissionable ma- terial.With respect to injury to or destruction of property,the word"injury" or"destruction' includes all forms of radioactive contamination of property. It is understood and agreed that,except as specifically provided in the forego- ing to the contrary, this clause is subject to the terms,exclusions,conditions and limitations of the Policy to which it is attached. •Note:—As respects policies which afford liability coverages and other forms of coverage in addition,the words underlined should be amended to designate the liabil- ity coverage to which this clause is to apply. 17-8-60 M.B.A.1266 &we mw away DISCLOSURE FORM CLAIMS-MADE POLICY IMPORTANT NOTICE TO POLICYHOLDER (CLAIMS-MADE BODILY INJURY AND PROPERTY DAMAGE COVERAGE) THIS DISCLOSURE FORM IS NOT YOUR POLICY. IT MERELY DESCRIBES SOME OF THE MAJOR FEATURES OF OUR CLAIMS MADE POLICY FORM. READ YOUR POLICY CAREFULLY TO DETERMINE RIGHTS, DUTIES, AND WHAT IS AND IS NOT COVERED. ONLY THE PROVISIONS OF YOUR POLICY DETERMINE THE SCOPE OF YOUR INSURANCE PROTECTION. Your policy is a claims-made policy. It applies only to injury or damage that occurs after the retroactive date and before the end of the policy period. It applies only to claims made against the insured after the inception date and before the end of the policy period. Upon termination of your policy, an extended reporting period may be available. OCCURRENCE VS. CLAIMS-MADE There is no difference in the kinds of injury and damage covered by either an "occurrence" policy or a "claims-made" policy. Claims for damages may be assigned to different policy periods, however, depending on which policy you have purchased. In an "occurrence" policy, coverage is provided for liability because of bodily injury and property damage THAT OCCURS DURING THE POLICY PERIOD, NO MATTER WHEN THE CLAIM IS MADE. In your "claims-made" policy, coverage is provided for liability because of bodily injury and property damage IF THE CLAIM FOR DAMAGES IS FIRST MADE DURING THE POLICY PERIOD. The term "claim(s)" means any information that may give rise to damages covered by this policy, including suit(s) brought in connection therewith, which you become aware of and provide written notice of same to Gallagher Bassett Services, Inc. Under most circumstances, a claim is considered made when it is received and recorded by Gallagher Bassett Services, Inc. ; but sometimes, a claim may be deemed made at an earlier time. This can happen when another claim for the same injury or damage has already been made, or when the claim is received and recorded during an extended reporting period as described in this disclosure statement. Page 1 of 3 PRINCIPLE BENEFITS 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. As an example, the time period for reporting potential claims is limited - see page 13 of 22, Section II 3. , Notice of Potential Claims. The majority of the limitations, exceptions or reductions within the policy form are outlined in the definition, conditions and exclusion sections of this policy. Please read them carefully and consult your agent about any questions you might have. RENEWALS, TAILS 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: Special "Claims-Made" Provisions Two concepts relating to continuity of coverage under the "claims-made" policy - and the pertinent policy provisions - are especially important to understand. These involve the Retroactive Date and the Extended Reporting Periods. RETROACTIVE DATE When you have a Retroactive Date entered on the Declaration page, THERE IS NO CVERAGE ROETROACTIVEODATE, EVEN IF,THE CURY LAIM R PISPFIRST MADE ERTY GDURING E TTHE CPOLICY PERIOD.S 7HE If there is no Retroactive Date block entered on the Declaration page, the policy will respond only to claims first made during the policy period for covered injury or damage, no matter when the injury or damage occurred. But if previous "occurrence" type insurance also applied to the injury or damage, your "claims-made" policy's Extended Reporting Periods guarantee continuity of coverage if you are offered a renewal or replacement policy with a later Retroactive Date than the 'ne in your current policy. Page 2 of 3 EXTENDED REPORTING PERIODS OF "TAILS" When applicable, the Extended Reporting Periods will increase the time within which a claim may be eligible for the policy's coverage. Some people call these Extended Reporting Periods "tails" . They ensure that no injury or damage need go uncovered because of a) cancellation or non-renewal , b) an advanced Retroactive Date, or c) replacement with insurance that is not on a "claims-made" basis for bodily injury or property damage. In any of these circumstances, our policy provides you with a Basic Extended Reporting Period that has two provisions. The first provides a 60 Day Period beyond policy termination to report claims for bodily injury or property damage occurring during the policy period. The bodily injury or property damage must have occurred before the end of the policy period, but not before the Retroactive Date. Claims first made during this Extended Reporting Period will be considered to have been made during the policy period and will be subject to the policy's limits of Insurance. There is no additional charge for this "tail " , but it applies only if you have no other insurance for the claim. The second is the Extended Reporting Period Amendment - The policy also guarantees under certain circumstances that you may purchase an amendment providing an Extended Reporting Period for 24 months. With this amendment, claims made during the extended reporting period and after the expiration of the policy period will be considered first made during the policy period, again, provided that the injury or damage occurred before the end of the policy period, but not before the policy's Retroactive Date. Claims-made, under this Extended Reporting Period, are subject to a Limit of Insurance which is equal to the limits of your original policy. To obtain this "tail" , you must request the amendment in writing immediately after the end of the policy period, and you must pay an additional premium. DATED: 2nd October, 1987. INTERNATIONAL SPECIAL RISK SERVICES, INC. BY C-eXeD0,/, 0-e-z-tA Page 3 of 3 0451W COMPANY(S) COVER NOTE Name of Assured Colorado Counties Casualty and Property Pool • • 1177 Grant Street • Denver, CO 80203 • CLAIMS IMMIN In the event of claim under this cover note, please notify: ,NTERNATION4� LIMP, RISK Seft INTERNATIONAL SPECIAL RISK SERVICES, INC. 10 Gould Center Rolling Meadows, Illinois 60008 (312) 640-8500 Insurer's Representative This insurance effected with Insurance Company(s) as noted herein. N IMPORTANT FORCE.O THE ASSSU ED FIS REQUESTED TOE READ THISECOVER NO EIUAND F INCOR ECT. RETURNEITT IMME.DIATEL FORHA TERATION Eason Printing Co. Chicago Form SL/COS/CN If an original policy is issued replacing this cover note, this insurance is subject to all the terms and conditions of that pc v..). This cover note shall be automatically terminated and voided by delivery of the original policy to the Assured. Short Rate Cancellation Table For Term of One Year Per Cent Per Cent Days of Days of Policy One rear Pol.cyForc One Year in Force Premium in Force P,em,am Su3F 1 5°° 15) 160 .. 54 2 7 ]. 6 e .e.164 S. L COVER NOTE PROVISIONS claim knowing the same to be false or fraudulent, as regards amount or otherwise, this cover note shall become void, forfeited. time by written notice or by the surrender of this cover 1. andIf the Assu re deke anypremium, by all claims erthereunder e shall be shod rate basis by the Assured at anyat the be cancelled on the customary also be cancelled, with or without the return or tender of t the unearredisd premi to the Assured, or by sending to the Assured by and in such case the Insurers This cover note may This cover note maypremium 2' said e Insurer's ash Representative. delirerin9when the cancellation shall be effective, mass note to thein their behalf, by � written notice, stating the Insurers hereon of any the Insurer's Representative, not less than heresubject always to the retention by paid premium less the evi portion thereof on demand, e red. Assured's address as shown herein, agreed previously upon) in the event of cancellation either by the Insurers or amount claimedhto be u due hereunder, the Insurers, shall refund ceof the ts thereof P pay any stipulated herein (or proportion event jurisdiction within the United States and will comply It is a9 will submit to the jurisdiction of any Court.of comp reed that in the event of the failure of the Insurers to 3. Service requirements Suit Clause— to give such Court I at the request of the insured (or reinsured), jurisdiction and all matters arising hereunder shall be determined in accordance with the law and practice with all necessary 3 Park Avenue,New York,New York 10016 or in such suit may , made or Mendes&Mount, of such Court. be made,upon nois 60603• Appellate Court in the It is further agreed that service of 115 South La Salle Street, Laid, Bissell & Brook, of them upon this contract, the Insurers will abide by the final decision of such Court or of any upon the request their nominee,e°net any such suit and/or P that in any suit instituted o9 t service of process on behalf of the Insurers such suit upon the Insurer's behalf event of an appeal. The insuredabo (-named are to give vzed and directed nt toa the reinsured) a written undertaking to the insured (or reinsured) that they will enter distrkt of the United States which makes provision the Insuren desig- nate the rthe , (or iatute o. se in the statute,therefor, his successor hereby desors suit shall be state, territory or behalf in the event such a other officer specified for that purpose suit or proceeding to any statute of any of Insurance or action, roceeding instituted by or pursuant true Director be served any lawful process in anydesignate the above-named on named Further, P Commissioner orand hereby i9 the Superintendent,(or insur lawful beneficiary upon whom may note andthis contract of insurance (or reinsurance),as their hereunder arising out of or a true copy thereof. in office, n Beneficiary reinsured) or ° per is authorized to mail such process of the insured Representative, is not an Assurer hereunder and t the person to deom the andoid the Assured by accepting this instrument that the said Insurer's Rep agreed by way or to any extent liable for any loss or claim whatever,but that the Insurers hereunde understood in an 4. It is expressly neither is nor shall be any and she that the said Insurer's Representative, this cover note. y the Assured cites are those rea shown elsewhere in report to the said Insurer's Representative, an occurrence likely days result in date lai of lnde r this lure cover r note, shall invalidate any e a under this cover note. Assured shall immediately detailed sworn proof of interest and lass within sixty 5. The As proof of loss as above provided, roofs of inter the said Insurer's Representative, written proofs also file wiRta or to file suchdays after presentation and acceptance of satisfactory to report the said loss or damage good to the Assured within thirty paid or made 9 resentative. 6. All adjusted claims shall be acts of fore the office of the said Insures Rep and loss atinvasion, payable in United States Currency happening through in consequence war, if any,note be indirectly occasioned by, hapP g or oru in oned power orofwa , nv oris naacts of fore 7. Lou, tdirectly ctiy or civil war, rebellion,revolution,insurrection,military atior by or under the order of any government or public or local authority, g, requisition cover does not of or loss m gor tdo pros in the Federal Excise Tax 4%(1% personal acrid enemies,hostilities(whether war be declared or not), damage to property reAX CLAUSE—Notice or _Notidestrucce ision hereby reed to allow for the purpo se of payingagreed that in the ev Notice premiumayan that the Insurers have a9 premium is subject to Federal Excise Tax. It is understood and 9. TAX CLAUSE— a able hereon to the extent such P personal accident or reinsurance) from the amount of the return < or reinsurance) of the payable return of premium becoming due hereunder the insurers will deduct 4% (1% P on the rev the any agent should take steps to recover the Tax from the U.S. Government. Assured a his conditions and warranties set forth herein or endorsed hereon or appearing subject to all the provisions, accepted provisions st 10. This iheueonce is mode and Part hereof,which conflict with or alter the earin9emns note hanached 1� side hereof, all r which n are appearingt ring on of rmorptacted hereto cone the in any forms attached no hereto and made a p provisions appearing in this cover note,insofar as the latter are inconsistent with the provisions app 11. Any provision or art,without the written consent of the said Insurer's Representative, endorsed hereon. above,shall supersedn the 12. This cover note shall not be assigned either in whole or in p 13. This cover note shall not be valid unless signed by the said Insurer's Representative. October 6, j 1987 �GHV 737/186/2 ICO 5349 THIS DECLARATION PAGE IS ATTACHED TO AND FORMS PART OF COVER NOTE PROVISIONS (FORM SL/COS/CN) A I : ITEM Name of Assured • Colorado Counties Casualty and Property Pool • 1177 Grant Street • Denver, CO 80203 • MOE July 1, 1987 July 1, 1988 © EFFECTIVE in A.M. BOTH DAYS AT TO FROM .O 12:00 NOON STANDARD TIME Acting upon your instruction,we have AMOUNT OR PERCENT NAME OF INSURERS CNA Reinsurance of London Ltd. • 5.00% effected the insurance with: • • RATE PREMIUM COVERAGE AMOUNT $678,799.00 Hereon: 5.00% Part of 100% Hereon: $33,939.95 Subject to the same forms, terms, conditions and endorsements as more 4 particularly set fort in Cover Note No. ISL 3798 is registered and delivered as a TOTAL CHARGED.-.------- I AUDIT • s rag der t e burp us SPECIAL CONDITIONS surplus c Inst.. i e ./i1��n/ � �Y L'. . F c.+.ACA SURiL ,b INE BROKER S.L.TAX:$ /I S.L. FEE IN FEES ' r:•. A BROKERAGE POLI International Special Risk Services, Inc. By / 's�V a _ Eason Printing Co.Chicago U.S.A. NUCLEAR INCIDENT EXCLUSION tCLAUSE d1No.L-1Mo_Drine d EC+Ta(BROAD ) (Approved by Lloyd's Underwriters' For attachment to insurances of the following classification in the U.S. A.. its Territories and Possessions,Puerto Rico and the Canal Zone:— lit ,Elevator Tenants Liability, Contractual Liobi'y, Zone:— Owners, Landlords Owners r Co (including railroad) Protective Liability, MaLiability, 0 arras and Contractors Professional and Malpractice Cony Star Liability,LiPrability, Garage Liability,, uto- and le. Liability iabtice Liability, Mkassachuseers ttsbdMotorarVehice Garage .mobile.. (including )beabslity), the elatIttleatian+to which the Nuclear Incident Esclution Clouts f 'w 1 being insurancesins of ,.-l'abJJy—S�srt(Limetrd)apple+. - • - Th{ pollee' does not apply:— I. Under any Lability Coverage,to injury,sickness,disease,death or destruction (a) with respect to which an insured under the policy is also an[insured LiabilityEnergy U Lia- bility Insurance Association,Mutual AetomicEnergylLia a-ty insured under any such policy but for its termination upon exhaustio n writers or Nuclear Insurance Association of Canada,or would of its limit of liability;or of nuclear material to md ainth - tain resulting from the(1)hazardous properties t lc,financial which ion person or organization tht-omit is required rotatory hereo,or Atomic is,or had Act this pat- Icyofbeen s thereof,entitled(2)the demni is, or any law amendatory to indemnity from the United agency thereof,under any agreement en- tered icy not issued would be, or any agency thereof, States of America,e ]sdted or y$ttea of America, into by Pay- ments with any Medical Payments ay r organization. or under any Supplementary expenses 11. Under anydeath relating tiCoverage,, surgical relief,tom from theh zardo s p p of immediate a(maeriale,and disease or out of the operation incurred with respect to bodily injury, the hazardous properties of nupclear or organization.arising death or destination of a nuclear facility by any e,to injury,sickness,disease, III. Under any tey hCazardous of nuclear material,if oper- ated from material ateria properties nuclear facility owned by,or orn) the nuclear on eh is na any 2 has been discharged by or behalf of,an insured or ( ) dis- persed therefrom: spent fuel or waste at any time (b) the possessed, d, is containedprocessed,stored,transported or disposed of byoronbhehalf of used, y or ju , sickness, e an insured;or in the injury, an insured rescue,death or destructionlsos or out f the (c) furgan ' i g,construction,matecoon,maintenance,ce equipment or use of an by 'planning, t if ho m is locateoperation n the United St with the y use of any nuclear facility,vLtern�ries or facility➢oeaeseiona or Canada, United ed States of c America, e'applies only to injury to or destruction of property atis such nucleonar (facility.l at propertin;sun. IV. As used in this es"include toxic or explosive special nuclear material robyproduct cyp uct"hazardous properties"include radioactive, deer material"means source al", mateecialrial, material", Act rod t {n any ma"have the meanings e ng them in the Atomic Energy A law ame dat ryr i given fuel element or fuel compo- nent,Lw amendatory thereof- has been lused or exposed to radiation in a nuclear andsolid)resulting liquid,which hasI containing byproduct material learfacility reactor;"ovule'included ednsany he deft bt ono aste material,( u lne rr acivanization of any nu- under paragraph and (2)resultingg from the op le (a) (b)ore' ty "nuclear tfa�ty"means nuclear facility thereof; separating the (a) any equip reactor, need for (1) (b) any equipment of urn ioru or plutoniumn, (2) processing or utilizing spent uel,oisotopes(3)uranium ,processing or packaging waste, fuel,or pnt or handling,p processing,fabricating or alloy- (c) ing equspecial ipment u device m ri l for at P time the total amount of such {rig material nuclear custody material insuredd at the premises where such equipment in the device �consists of orcombinationcontains more re<than an•20 gras ofluor onium or jut 233 or any grams of 250 ram uranium 235, or used more than 2r,basin,exof au a ti premises or place prepared (d) for structure, or basin,posal of wte, for the storage site w iih ny of is located,all operations on which any ofpremises the foregoing operations; "nuclear and tor"me the any end used for such uclear fission in a conducted tio such site apparatus or g cod or used to sustainmm n rend.With re contain a critical mac thefewords"injurry" or"destruction" chain reaction or to of radioactive contamination of property. ma- terial. respect to injury to or destruction of property, t "understood includes all forma as specifically ded in the forego- and greee that, the terms,exclusions,conditions and It is understood thin clause is subject to fee to the o contrary,P to which it is attached. P coverages and other forms of limitations of the ,lip te the liabil- ity e worn uwhiched sold be avenge in addition,the ovoids underlined should be amended to designate coverage to which this clause is to apply y?SON trs 11-3-60 N.M.A.1266 • SERVICE OF SUIT CLAUSE (U.S.A.) It is agreed that in the event of the failure of the Underwriters hereon to pay any amount claimed to be due hereunder, the Underwriters hereon, at the request of the Insured (or Reinsured), will submit to the jurisdiction of a Court of competent jurisdiction within the United States. Nothing in this Clause action ineanyrCshould be understod to ourt of competent j r sdiction constitute in the United States, to rights removerwriters' an to commence United States District Court, or to seek a transfer of a case to another Court as permitted by the laws of the United States or any State ,nBt the 11 United Brook, 115s. t is further S. LaSalle Stt.., Chicagoeed that ,ILce of 60603 process such may be made upon Lord, Mount, 3 Park Avenue, New York, NY 10016, and that in any suit instituted against any one of them upon this contract, Underwriters will abide by the final decision of such Court or of any Appellate Court in the event of an appeal. The above-named are authorized and directed to accept service of process on abehalen alf of Underwriters in any such suit and/or upon the request of the Insured (or Reinsured) to g' 1e the Insured (or Reinsured) that will enter a general appearance upon Underwriters' behalf in the event such a suit shall be instituted. ory or rict of the United ates which Further, pursuant toe, any statute of any Underwriters, hereontherebytdesignatetthe Superintendent, Colnmiss onerkes or provision therefore, Director of Insurance or other officer specified for that purpose in the statute, or his successor or in successors in office, a true lawful attorney upon behalfwhom of the nsurede(ornReilansured)wful oorsany any action, suit or proceeding instituted by or on beneficiary hereunder arising out of this contract of insurance (or insurance), and hereby designate the above-named as the person to whom the said officer is authorized by mail such process or a true copy thereof. NMA 1998 (24/4/86) Form approved by Lloyd's Underwriters' Non-Marine Association. LW Sot SC/11/24MS • 'IA. RADIOACTIVE CONTAMINATION EXCLUSION CLAUSf— PHYSICAL DAMAGE-DIRECT(Approved by by Lloyd's Underwriters'Fire and Nos-Marine Association) • This policy does not cover any loss or damage arising directly or indirectly from nuclear reaction. nuclear radiation or radioactive contamination however such nuclear reaction, n ea uclr radiation or radioactive contamination may have been caused NEVERTHELESS if Fire is an insured peril and • Fire arises directly or ss or indirectly from nuclear reaction. nuclear radiation or ect to the provisionseof this policy)contamination beany covered EXCLUDING however e t directly loss or that l damageFire caused by nuclear reaction, nuclear radiation. or radioactive contamination arising directly or indirectly from that Fire. ppoo t•o We end or Fire clause an not insured dapply and usnder tbees disregarded. from "NEVERT'FI81-IL88' 7/1/11 N.1LA-1111 usos nmtvo Warr Itw 7 C IT r f% s t r F e�; ^qu I €3-: • F LLOYD'S COVER NOTE,.`' Name O�f�SSl[7 ssured Colorado Counties Casualty and Property Pool 1177 Grant Street Denver CO 80203 In the event of claim under this cover note, please notify: ` • `' - ,N?ERNATION44 i � Ilr �:�1 • Nq 4k RISK SER`fice ri INTERNATIONAL SPECIAL . RISK SERVICES, INC. 10 Gould Center Rolling Meadows, Illinois 60008 (312) 640-8500 Broker - F tt J " This insurance effected with certain . � UNDERWRITERS AT LLOYD'S, LONDON (not incorporated) IMPORTANT •IN'FOR E.THEOASSURED IISSB LED FLAT EARNED PREMIUMBE INSURANCE TREQUESTEDELTO READ THIS COVER NO E, AND F INCORRECT, RET RNIT IMM D ATELY BEEN t`ALTERATION. r :,`,.$,A. ' J`iv l ' , �,,. -- _.Eamon Printing Co.Chicago Fo m CN 1 }• ea . JA o:,-,— -_' -_ ' October 6, 1987 GHV 737/186/2 ISL 3512 . THIS DECLARATION PAGE IS ATTACHED TO AND FORMS PART OF COVERNOTE PROVISIONS (FORM CN-1) ITEM _ NUMBER I S L 3798 Name of Assured Colorado Counties Casualty and Property Pool • 1177 Grant Street • 1 Denver CO 80203 • • C • AS • • • • 2 EFFECTIVE Ek 12:01 A.M. BOTH DAYS AT FROM .O 12:00 NOON STANDARD TIME July 1, 1987 TO July I, 1988 NAME OF INSURERS AMOUNT OR PERCENT Acting upon your instruction, we have 4, effected the insurance with: . UNDERWRITERS AT LLOYD'S, LONDON 95.00% 3 AMOUNT COVERAGE RATE PREMIUM Hereon: 95.00% Part of 100% of: $ 350,000 each and every loss and/or Excess All Risks $678,799.00 claim(s) but of Physical Loss $1 ,000,000 in the aggregate annually in of Damage as per Hereon: $644,859.05 respect of the Assured retention attached forms. ,Ai. • BUT ONLY TO PAY EXCESS OF: $ 150,000 each and every loss and/or claim(s) but $2,550,000 in the aggregate annually in respect of the Assured's retention. TI'?.; contract is registered and delivered as a surolugetfre c i r nder the "Surplus Lines l AUDIT Ins t nce gct". 4,4-_, _ ,/ �,eor: �� TOTAL CHARGED SPECIAL CONDITIONS .1 > f 7 Y ` ! As per attached forms ZUCA THIS IF: !I^,?^?C RS ,.-n, n r •- 3 , iH; SURPLUS LINT ROKER AN INSURER THAT I NOT LICENSED By NMA 1191 THIS Sant I, (',t, C i 0 i.1iiC''', 5 NMA 1256 S.L. TAX:$ -21697• --- 1r�-�97 . �P+ei`;t :=^•11 OF C_Pill'J reef I C B_ NMA1998 S.L. FEES , y -EL , Rt5O1it�iri�'.+i= �'V LiLi 1' t-:J • Service of Suit Clause 6 Lord, Bissell & Brook, 115 South LaSalle Street, Chicago, IL 60603 or Mendes & Mount, 3 Park Avenue, New York, NY 10016 • Rolling Meadows, IL 6th October In witness whereof this covernote has been signed at this day of THE IN u r /' -`+ ° _—+:21: IS PLACED, , ,;a , . _ t ;IN International Special Risk Services, Inc. • THE STATE.1+. ,.: .. r':::1 :Y A: r .'. i:ISa IS LOCATE')fLUT THE C ...;NY i3 fiti A L;_ri:ED CARR:ER IN THAT In::::t. THIS RL L^E r ° / 1 ' `'::1'E , 0LI PP.O'rERi° 0 r- r 9 s S � THE INEURSHCI ifai4 .,_r,.,v: INN S1,VE.rd.FER By--e • Fp Irpp ru v(.);.,•,ary stHlF.US LINE'S TAXES Eason Printing co Chilli.,$_ ..iJ r 4 1:;::::-''..:L1.7. 7:3 _..ai:h.1'riE SIAME. IMPORTANT NOTICE TO THE ASSURED SECTION II INSURING AGREEMENTS C, D AND E ARE ON A CLAIMS MADE BASIS READ THIS POLICY CAREFULLY COMBINED PROPERTY, CASUALTY AND CRIME INSURANCE SECTION I PROPERTY INSURANCE Agreement A Building and Contents Agreement B Automobile SECTION II CASUALTY INSURANCE Agreement C General Liability Agreement D Host and/or Liquor Liability Agreement E Automobile Liability Agreement F Workers' Compensation and/or Employer's Liability and/or Occupational Disease SECTION III CRIME COVERAGE Agreement G Money and Securities (within premises) Agreement H Money and Securities (outside premises) Agreement I Commercial Blanket Bond DECLARATIONS ASSURED Colorado Counties Casualty and Property Pool ADDRESS 1177 Grant Street, Denver, Colorado 80203. LIMITS OF LIABILITY SFe Part I for Excess Loss Fund Protection Agreement. See Part II for Specific Excess Agreement. PREMIUM Annual Premium SEE ENDORSEMENT NO. 2 ATTACHED. TERM OF INSURANCE Effective from July 1, 1987 to July 1, 1988 BOTH DAYS at 12.01 A.M. Standard Time at Assured's address shown above. RETROACTIVE DATE (Applicable to SECTION II Agreements C, D and E) July 1, 1986. Page 1 of 22 PART I (EXCESS LOSS FUND PROTECTION AGREEMENT) LIMITS OF LIABILITY: The Underwriters' Limits of Liability under this Agreement shall be only for the Excess of Loss over a loss fund of $2,550,000 ultimate net loss (hereinafter referred to as Assured's Loss Fund) . As respects any one loss and/or accident or disease and/or claim(s) including suit(s) brought in connection therewith the Assured's Loss Fund shall not be charged with 1) any amount in excess of $150,000 Ultimate Net Loss as respects any one loss and/or accident or disease and/or claim(s) including suit(s) brought in connection therewith under Sections I, II or III or any combination thereof, or 2) the first $500 of any loss arising under Section I (except Automobile Comprehensive Perils) and Section III. And then in excess of the above amounts up to $1,000,000 Ultimate Net Loss in the aggregate in any one period of insurance in respect of the Assured's Loss Fund. LOSS FUND ADJUSTMENT: The amount of the Assured's Loss Fund applies to the first period of insurance of this policy and is subject to review and change for each period of insurance thereafter. PART II (SPECIFIC EXCESS AGREEMENT) LIMITS OF LIABILITY: The Underwriters' Limits of Liability under this Agreement shall be only for the excess of loss over $150,000 ultimate net loss each and every loss and/or accident or disease and/or claim(s) including suit(s) brought in connection therewith up to a further $350,000 ultimate net loss each and every loss and/or accident or disease and/or claim(s) including suit(s) brought in connection therewith, under Section I, II or III or any combination thereof. GENERAL INSURANCE AGREEMENTS I . PERIOD OF INSURANCE The words period of insurance shall be understood to mean the following period: Period II - July 1, 1987 to July 1, 1988 Page 2 of 22 II NAME OF ASSURED It is agreed that the unqualified word 'Assured' wherever used in this Insurance includes not only the Named Assured but also - 1. Colorado Counties Casualty and Property Pool (CAPP) including it's Board of Directors, Officers, Employees, Agents, and all participating Counties as members thereof including their elected and appointed Officials, Trustees, Directors, Officers, Employees and Volunteers, individually and collectively, while acting within the scope of their duties as such, and any person, organization, trustee or estate to whom the Named Assured is obligated by virtue of written contract or agreement to provide insurance such as is offered by this Insurance, but only in respect to operations by or on behalf of the Named Assured; 2. under Section II Agreement E, any person while using an owned automobile or a hired automobile and any person or organization legally responsible for the use thereof, provided the actual use of the automobile is by the Named Assured or with his permission, and any official , trustee or employee of the Named Assured with respect to the use of non-owned automobile in the business of the Named Assured. This Insurance with respect to any person or organization other than the Named Assured does not apply; (a) to any person or organization, or to any agent or employee thereof, operating an automobile sales agency, repair shop, service station, storage garage or public parking place, with respect to any accident arising out of the operation thereof; (b) to any employee with respect to injury to or sickness, disease or death of another employee of the same employer injured in the course of such employment in an accident arising out of the maintenance or use of the automobile in the business of such employer; (c) with respect to any hired automobile, to the owner or a lessee thereof, other than the Named Assured, nor to any agent or employee of such owner or lessee; (d) with respect to any non-owned automobile, except as excess only over any valid and collectible primary insurance, to any official or employee if such automobile is owned by him/her or a member of the his/her household. The inclusion hereunder of more than one Assured shall not operate to increase Underwriters Limits of Liability. III. TERRITORY This Insurance applies Worldwide. Page 3 of 22 IV. In calculating the amount of Ultimate Net Loss under Part I (Excess Loss Fund Protection Agreement) and Part II (Specific Excess Agreement) , this Insurance is deemed to include the following maximum limits which will apply for all purposes to the Assured's Loss Fund and to the Specific Excess Agreement. (a) $500,000 in the aggregate annually as respects any Flood loss under Section I. (b) $500,000 in the aggregate annually as respects any Earthquake loss under Section I. (c) $400,000 any one claim including suit brought in connection therewith, Combined Single Limit, Public Liability/Property Damage under Section II Agreements C, D and E. (d) $400,000 any one claim including suit brought in connection therewith, Combined Single Limit, Public Liability/Property Damage but $1,000,000 in the aggregate annually, as respects Errors and Omissions provided by Endorsement No. 1 attached. (e) As per State Statute but not exceeding IV (c) above No Fault Liability as defined in Endorsement No. 23 attached. (f) $ 5,000 any one person/$100,000 any one loss as respects other than Automobile Medical Payments under Section II Agreement C. (Coverages exclude payments to or for students) . (g) $ 5,000 any one person/$100,000 any one loss as respects Automobile Medical Payments under Section II Agreement E. (h) $150,000 each and every loss under Section III Agreement G. (i ) $150,000 each and every loss under Section III Agreement H. (j) $150,000 each and every loss under Section III Agreement I. (k) $150,000 each and every loss as respects Faithful Performance defined in Endorsement No. 15 attached. (1 ) $150,000 each and every loss as respects Depositors Forgery as defined in Endorsement No. 16 attached. In the event of the exhaustion of any above mentioned aggregate limit(s) , the Assured will be liable for their applicable limit of liability detailed in PART I (EXCESS LOSS FUND PROTECTION AGREEMENT) and PART II (SPECIFIC EXCESS AGREEMENT) for any further loss and/or claim(s) including suit(s) brought in connection therewith covered by this Insurance. Page 4 of 22 V. SERVICE ORGANIZATION This Insurance is issued to the Assured on the express condition that the Assured undertakes to utilize at all times the services of Gallagher Bassett Services Inc. This Service Organization shall perform the following duties: (a) Administer claims in accordance with accepted industry standards once notice of a loss has been made to Gallagher Bassett Services Inc. Perform the notice and reporting requirements to the Underwriters under the terms of this Agreement. (b) Maintain accurate records of all reported claims and details incident to loss and expense payments. (c) Furnish loss prevention and consulting services. Recommend and implement controls and monitor loss prevention programs. (d) Furnish monthly claims records on an approved form. The acceptance of these services shall be a condition precedent to any liability which may attach to the Underwriters in accordance with the terms and conditions of this Insurance. SECTION I - PROPERTY INSURANCE INSURING AGREEMENTS AGREEMENT A - BUILDING AND CONTENTS: Underwriters agree, subject to the limitations, terms and conditions of this Insurance, to indemnify the Assured for all risks of physical loss or damage to All Real or Personal Property of every kind and description wherever located occurring during the period of this Insurance. AGREEMENT B - AUTOMOBILE: Underwriters agree, subject to the limitations, terms and conditions of this Insurance, to indemnify the Assured for loss or damage to Automobiles owned by the Assured or on which the Assured has an obligation to provide adequate insurance, wherever located, against All Risks of Direct Physical Loss, including Collision of the Automobile with another object. Page 5 of 22 SECTION 1 - DEFINITIONS 1 . PROPERTY OF THE ASSURED: The term 'Assured's Property' shall mean All Real and Personal Property, including leasehold improvements or betterments which the Assured owns, property which the Assured holds on consignments or agrees to insure by any contractual agreement normal to its operations. 2. AUTOMOBILE: The term Automobile, shall mean any motor vehicle, trailer or semi-trailer, including its equipment and any other equipment permanently attached thereto. The word 'Trailer' shall include semi-trailer. 3. ULTIMATE NET LOSS: The words Ultimate Net Loss in respect of this Section shall be understood to mean the loss sustained by the Assured after making deductions for all recoveries and salvages. 4. EARTHQUAKE: If more than one earthquake shock shall occur within any period of seventy-two (72) hours during the term of this Insurance, such earthquake shock shall be deemed to be a single earthquake within the meaning hereof. SECTION 1 EXCLUSIONS WITH REGARD TO ALL PROPERTY, THIS INSURANCE DOES NOT INSURE AGAINST: 1. Loss by moth, vermin, termites or other insects; wear, tear or gradual deterioration, rust, wet or dry rot or mould. 2. Loss or damage caused by: (a) Radioactive or fissionable material . (b) Contamination, other than by (a) above, unless directly resulting from Fire or Extended Coverage perils. 3. Loss resulting from loss of use (except such loss of use coverage as is afforded under a Standard Automobile Policy in respect of Agreement B above) , delay or loss of markets. 4. Breakdown of machinery and/or boiler explosion, but not excluding loss resulting therefrom. 5. Loss resulting from dampness of atmosphere or variation in temperature unless caused by the perils of Fire and Extended Coverage. 6. Loss of electrical appliances or devices of any kind, including wiring, arising from electrical injury or disturbance to the said electrical appliances or devices or wiring from artificial causes unless fire or explosion ensues, and then only for direct loss or damage caused by such ensuing fire or explosion. Page 6 of 22 WITH REGARD TO ALL REAL PROPERTY, THIS INSURANCE DOES NOT INSURE AGAINST: Loss by normal settling, normal shrinkage or normal expansion in foundations, walls, floors or ceilings. WITH REGARD TO PERSONAL PROPERTY, THIS INSURANCE DOES NOT INSURE AGAINST: 1. Loss by mechanical derangement, inherent vice or latent defect. 2. Loss resulting from processing or faulty workmanship, unless fire and/or explosion ensues, and then only for direct loss or damage caused by such ensuing fire or explosion. 3. Loss resulting from shrinkage, evaporation, loss of weight or leakage, unless such loss is caused directly by fire or the combating thereof, lightning, windstorm, hail , explosion, strike, riot or civil commotion, aircraft, vehicles, breakage of pipes or apparatus, sprinkler leakage, vandalism and malicious mischief, theft or attempted theft. 4. Inventory shortage, mysterious disappearances or loss resulting from any kind of infidelity or dishonesty on the part of the Assured or any of his employees, except from the perils covered in Section III (Money and Securities - Broad Form) of this Insurance. PROPERTY EXCLUDED FROM COVERAGE HEREUNDER: Animals, aircraft, standing timber, growing crops, accounts, bills, currency, money, notes, securities, deeds, evidences of debt and valuable papers. SECTION I - CONDITIONS 1. VALUATION: The Underwriters shall not be liable for loss or damage in excess of: A. (Real and Personal Property - other than automobile) - the cost to repair, rebuild or replace the destroyed or damaged property in a condition equal to but not superior to or more extensive than its condition when new. If the Assured decides to replace destroyed or damaged property on another site, cost of such site is not included hereunder. It is not a req!airement hereunder that the Assured repair, rebuild or replace the destroyed or damaged property in order to collect for loss or damage covered by this Insurance. B. (Automobile) - the actual cash value of the automobile at the time of loss. Page 7 of 22 2. DEBRIS REMOVAL: This Insurance covers the expense of removal from the premises containing the property insured hereunder of debris remaining after any loss hereby insured against, except that there shall be no liability assumed for the expense of removal of any foundations. 3. REMOVAL CLAUSE: This Insurance covers the expense and damage occasioned by removal from the premises endangered by the perils insured against wherever such property is located or removed for preservation. 4. ARCHITECTS' FEES: This Insurance covers the additional assessment involving architects, fees for consultations arising from losses resulting from an insured peril . Fees are limited to seven percent (7%) of replacement cost. 5. APPRAISAL: In the event the Assured and Underwriters are unable to agree as to the amount necessary to rebuild, repair or replace the damaged or destroyed property or the actual amount of reimbursement to be paid, each party shall name a competent and disinterested appraiser and the two so chosen shall , before proceeding further, appoint a competent and disinterested umpire. The appraisers together shall obtain reconstruction estimates and calculate the amounts of reimbursement due, and failing to agree shall submit their differences to the umpire. The award in writing, duly verified by any two, shall determine the points in question. Both parties shall pay the cost of their own appraisers and equally pro rate the cost of the umpire. 6. CIVIL AUTHORITY CLAUSE: Notwithstanding anything contained in this Insurance, property which is insured under this Insurance is also covered against the risk of damage or destruction by civil authority during a conflagration and for the purpose of retarding the same; provided that neither such conflagration nor such damage or destruction is caused or contributed to by war, invasion, revolution, rebellion, insurrection or other hostilities or warlike operations. 7. ORDINANCE DEFICIENCY CLAUSE: Notwithstanding anything contained herein to the contrary, the Jnderwriters shall be liable also for the loss occasioned by the enforcement, of any state or municipal law, ordinance or code, which necessitates, in repairing or rebuilding, replacement of material to meet such requirements. If demolition is required to comply with such enforcement Underwriters shall also be liable for such additional costs. 8. EXPENSE TO REDUCE OR PREVENT LOSS: This Insurance also covers such expenses as are necessarily incurred for the purpose of reducing or preventing any loss under this Insurance not exceeding, however, the amount by which the loss under this Insurance is thereby reduced. Page 8 of 22 SECTION II - CASUALTY INSURANCE INSURING AGREEMENTS AGREEMENT C - GENERAL LIABILITY: Underwriters hereby agree subject to the Definitions, Exclusions and Conditions hereunder mentioned, to indemnify the Assured for Ultimate Net Loss by reason of the liability imposed upon the Assured by law or assumed by the Named Assured under contract or agreement, for damages direct or consequential in respect of a Claim or Claims including suit or suits brought in connection therewith, made against the Assured during the period of this Insurance and which arise solely by reason of personal injury(ies) , including death at any time resulting therefrom, suffered or alleged to have been suffered by any person or persons (excepting employees of the Assured injured in the course of their employment) and/or damage to or destruction of property or the loss of use thereof resulting from an Accident which occurs on or after the retroactive date set out in the Declarations. AGREEMENT D - HOST AND/OR LIQUOR LIABILITY: In accordance with the provisions of the above Agreement C, the Underwriters agree that indemnity for the Assured extends to liability for the sale or distribution of alcoholic beverages by reason of any local , state or Federal Liquor control laws now in force and all laws amendatory thereto; and that such extension includes indemnity for loss of means of support. AGREEMENT E - AUTOMOBILE LIABILITY: Underwriters hereby agree, subject to the Definitions, Exclusions and Conditions hereunder mentioned, to indemnify the Assured for Ultimate Net Loss by reason of the liability imposed upon the Assured by law or assumed by the Named Assured under contract or agreement, for damages direct or consequential in respect of a Claim or Claims including suit or suits brought in connection therewith made against the Assured during the period of this Insurance solely by reason of personal injury(ies) , including death at any time resulting therefrom, suffered or alleged to have been suffered by any person or persons (excepting employees of the Assured injured in the course of their employment) and/or damage to or destruction of property or the loss of use thereof, arising out of the ownership, maintenance or use of any automobile resulting from an Accident which occurs on or after the retroactive date set out in the Declarations. Page 9 of 22 AGREEMENT F - WORKERS' COMPENSATION, EMPLOYERS' LIABILITY AND OCCUPATIONAL DISEASE - Coverage A - Workers' Compensation - The Underwriters hereby agree to pay promptly when due all compensation and other benefits required of the Assured by the workers' compensation law as a result of injury or death (1) by accident occurring during the period of this Insurance, or (2) by disease caused or aggravated by exposure of which the last day of the last exposure, in the employment of the Assured, to conditions causing the disease, occurs during the period of this Insurance. Coverage B - Employers' liability - The Underwriters hereby agree to pay on behalf of the Assured all sums which the Assured shall become legally obligated to pay as damages because of personal injury or death by accident or disease, including death at any time resulting therefrom, (a) sustained in the United States of America, its territories or possessions, or Canada by any employee of the Assured arising out of and in the course of his/her employment by the Assured, or (b) sustained while temporarily outside the United States of America. its territories of possessions, or Canada by any employee of the Assured who is a citizen of resident of the United States or Canada arising out of and in the course of his/her employment by the Assured; but this insurance does not apply to any suit brought in or any judgement rendered by any court outside the United States of America, its territories of possessions, or Canada or to an action on such judgement wherever brought, as a result of injury or death (1) by accident occurring during the period of this Insurance, or (2) by disease caused or aggravated by exposure of which the last day of the last exposure, in the employment of the Assured, to conditions causing the disease, occurs during the period of this Insurance. SELF-INSURER'S STATUS The Assured agrees to duly qualify as a self-insurer by compliance with the provisions of the Workers Compensation and/or Occupational Disease Law respecting self-insurance in the State of not applicable and shall continue to maintain said status throughout the period of this Insurance provided, however, Underwriters shall not be relieved of their obligations hereunder because of a breach of this condition until (1) the Assured becomes insured with respect to his Workers' Compensation and/or Occupational Disease Liability or (2) the expiration of a period of thirty days after date of the notice served upon the Assured by the Industrial Commission terminating his status as a self-insurer, whichever occurs first. If any employee is injured or dies while engaged in the business operations of the Assured outside the State of not applicable, this Insurance shall apply to the Assured on account of such injuries or death irrespective of whether such liability is greater than it would have been had the injuries been sustained within the State of not applicable. Page 10 of 22 SECTION II - DEFINITIONS 1. PERSONAL INJURIES - The term 'personal injuries' , wherever used herein, shall mean: (a) Bodily Injury, Mental Injury, Mental Anguish, Shock, Sickness Disease, Disability, False Arrest, False Imprisonment, Wrongful Eviction, Detention, Malicious Prosecution, Discrimination, Humiliation, Invasion of Rights of Privacy, Libel , Slander or Defamation of Character; also Piracy and any Infringement of Copyright or of Property, Erroneous Service of Civil Papers, Violation of Civil Rights, Assault and Battery, and Disparagement of Property. (b) Injury(ies) arising out of the rendering of or failure to render Professional medical services to any person or persons (other than employees of the Assured injured during the course of their employment) by any duly qualified medical practitioner, or nurse or technician employed by or acting on behalf of the Assured. 2. PROPERTY DAMAGE - The term 'property damage' , wherever used herein, shall mean damage to or destruction or loss of property, excluding, however, damage to property owned by the Named Assured, but including damage to property of others in the care, custody or control of the Named Assured or property which is purchased by the Named Assured under a contract which provides that the title remain with the sellers until payments have been completed, the liability of Underwriters being limited to the amount of payments outstanding. 3. ACCIDENT - The term "Accident" (EXCEPTING AGREEMENT F) , wherever used in this Policy, shall mean an event or occurrence, including continuous or repeated exposure to the same general harmful conditions, which occurs on or after the retroactive date set out in the Declarations and which results in Personal Injury(ies) and/or Property Damage; in which case the Personal Injury(ies) and/or Property Damage, regardless of whether suffered by each individual person or each individual entity, shall be treated as resulting from one Accident. 4. CLAIM - The term "Claim(s)", wherever used in this Policy, shall mean any information that may give rise to damages covered by this Policy, including suit(s) brought in connection therewith, which the Assured becomes aware of and provides written notice of the same to Gallagher Bassett Services, Inc. 5. ULTIMATE NET LOSS - The term 'ultimate net loss' shall mean the total sum which the Assured becomes obligated to pay by reason of personal injury or property damage claims, either through adjudication or compromise, after making proper deductions for all recoveries and salvages, and shall also include hospital , medical and funeral , charges and all sums paid as salaries, wages, compensation, fees, charges and law costs, premiums on attachment or appeal bonds, interest, expenses for doctors, lawyers, nurses and investigators and other persons and for litigation, settlement, adjustment and investigation of claims and suits which are paid as a consequence of any occurrence covered hereunder, excluding only the salaries of the Named Assured's permanent employees. Fees, charges and expenses for Gallagher Bassett Services Inc. are specifically excluded and are to be paid by the Assured. Page 11 of 22 6. (a) WORKERS' COMPENSATION LAW - Applicable to Insuring Agreement F - The unqualified term "workers' compensation law" means the workers' compensation law and any occupational disease law of the state designated in the 'SELF-INSURER'S STATUS' but does not include those provisions of any such law which provide non-occupational disability benefits. (b) STATE - The word "state" means any State or Territory of the United States of America and the District of Columbia. (c) PERSONAL INJURY BY ACCIDENT; PERSONAL INJURY BY DISEASE - The contraction of disease is not an accident within the meaning of the word "accident" in the term "personal injury by accident" and only such disease as results directly from a personal injury by accident is included within the term "personal injury by accident" . The term "personal injury by disease" includes only such disease as is not included within the term "personal injury by accident". (d) ASSAULT AND BATTERY - Under Coverage B, assault and battery shall be deemed an accident unless committed by or at the direction of the Assured. SECTION II - EXCLUSIONS THIS INSURANCE DOES NOT APPLY - (a) to any Claim or Accident in respect of which the Assured either has given written notice to the insurers of any other insurance before the inception date set out in the Declarations or gives written notice of potential Claims where such notice is treated by any insurers as received by such insurers before the inception date set out in the Declarations; (b) to any Claim resulting from an event which occurred prior to the retroactive date set out in the Declarations and which results in Personal Injury(ies) and/or Property Damage; (c) to liability of any Assured for assault and battery committed by or at the direction of such Assured except (i) liability for Personal Injury or Death resulting from any act alleged to be assault and battery for the purpose of preventing injury to persons or damage to property and (ii ) liability arising out of corporal punishment; (d) except with respect to operations performed by independent contractors, to the ownership maintenance or use, including loading or unloading of aircraft and watercraft over 25 feet in length; (e) to damage or destruction of property owned by the Assured; Page 12 of 22 (f) Applicable to Insuring Agreement F - (i ) under Coverage B, to liability assumed by the Assured under any contract or agreement, but this exclusion does not apply to a warranty that work performed by or on behalf of the Assured will be done in a workmanlike manner; (ii ) under Coverage B, with respect to any employee employed in violation of law with the knowledge or acquiescence of the Assured or any executive officer thereof; (iii ) under Coverage B, to personal injury by disease unless prior to thirty-six months after the end of the policy period written claim is made or suit is brought against the Assured for damages because of such injury or death resulting therefrom; (iv) under Coverage B, to any obligation for which the Assured or any carrier as his insurer may be held liable under the workers' compensation or occupational disease law of the state designated in the 'SELF-INSURER'S STATUS' , any other workers' compensation or liability benefits law, or under any similar law. SECTION II - CONDITIONS 1. CROSS LIABILITY: In the event of claims being made by reason of personal injuries and,/or property damage suffered by any employee of one Assured herein for which another Assured herein is or may be liable, then this Insurance shall cover such Assured against whom a claim is made or may be made in the same manner as if separate Policies had been issued to each Assured herein. Nothing contained herein shall operate to increase the Underwriters' Limit of Liability as set forth herein. The Underwriters agree to waive all rights of subrogation against all or any of the corporations of individuals comprising the Assured. 2. NOTICE OF CLAIM: Notice must be given to Gallagher Bassett Services, Inc. as soon as practicable whenever the Assured has information from which the Assured should reasonably conclude that a Claim, covered under Section II of this Insurance, involves injuries or damages. 3. NOTICE OF POTENTIAL CLAIMS: If Gallagher Bassett Services, Inc. receive notification during any PERIOD OF INSURANCE set out in GENERAL INSURANCE AGREEMENT I and up to 60 (sixty) days thereafter, of an Accident which occurs prior to the expiration of any PERIOD OF INSURANCE set out in GENERAL INSURANCE AGREEMENT I, then Underwriters will treat any Claim made against the Assured as made on the date on which the notification was received by Gallagher Bassett Services, Inc. or the expiry date of any PERIOD OF INSURANCE, whichever is the earlier. Page 13 of 22 NOTWITHSTANDING the aforementioned or anything else contained herein to the contrary, any notification received by Gallagher Bassett Services, Inc. IN EXCESS OF 60 (sixty) days after any PERIOD OF INSURANCE set out in GENERAL INSURANCE AGREEMENT I of a combined loss involving any coverages in SECTION I, II or III will render the Assured liable for their applicable limit of liability detailed in PART II (SPECIFIC EXCESS AGREEMENT) separately for each coverage arising from said combined loss. Similarly, in the event of the foregoing the Assured will also be liable for their applicable limit of liability detailed in PART I (EXCESS LOSS FUND PROTECTION AGREEMENT) for each applicable PERIOD OF INSURANCE set out in GENERAL INSURANCE AGREEMENT I. 4. TERMS OF POLICY CONFORMED TO STATUTE: Applicable to Insuring Agreement F - Under Coverage A the terms of this Policy which are in conflict with the provisions of the workers' compensation law are hereby amended to confirm to such law. 5. COMMUTATION: Applicable to Insuring Agreement F - Claims hereunder, not finally settled, for weekly or periodical payment for compensation to employees (or their dependents) as a result of death or injury shall be notified with full particulars by the Assured to the Underwriters within two years from the expiration date of this Insurance and the Underwriters may, if they so elect, then or at any time thereafter submit one or more of such claims to an Actuary or Appraiser, to be mutually appointed by the Assured and the Underwriters, and the Underwriters shall at their option pay a lump sum to be fixed by the Actuary or Appraiser which payment shall constitute a full and final release of the Underwriters liability for such claim or claims, provided however that such lump sum payment shall not constitute a full and final release of Underwriters liability if subsequent to such lump sum payment any supplemental award is made increasing the amount of compensation benefits payable to the employee or his/her dependents and that any additional claim may then be recommuted at Underwriters option and Underwriters may discharge any additional liability by another lump sum payment. SECTION III - CRIME INSURANCE INSURING AGREEMENTS AGREEMENT G - MONEY AND SECURITIES (COVERAGE WITHIN PREMISES): Underwriters agree, subject to the limitations, terms and conditions of this Insurance, to indemnify the Assured for all loss caused by reason of theft, burglary, robbery, kidnapping, disappearance or destruction of any money or securities which may at any time be or believed by the Assured to be in or upon any premises occupied or used by the Assured or by any bank, trust company or safe deposit company. Such Insurance as is afforded by this Insurance also applies to deposits within a night depository safe provided by a bank or trust company on its premises for the use of its customers. Page 14 of 22 AGREEMENT H - MONEY AND SECURITIES (COVERAGE OUTSIDE PREMISES): Underwriters agree, subject to the limitations, terms and conditions of this Insurance, to indemnify the Assured for all loss caused by reason of the theft, robbery, kidnapping, disappearance or destruction of any money or securities (other than by fraud or connivance of the Assured's officers or employees) while in transit in the custody of the Assured's officers or employees anywhere, the liability of Underwriters to commence at the moment when the person into whose hands the property may be delivered on behalf of the Assured receives the same and to continue until delivery thereof at the final destination. AGREEMENT I - COMMERCIAL BLANKET BOND: Underwriters (hereinafter called 'the Surety') agree, subject to the terms and conditions set forth herein, to indemnify the Assured (hereinafter called 'the Employer' ) against any loss of Money or other property real or personal (including that part of any inventory shortage which the Employer shall conclusively prove is caused by the dishonesty of any Employee or Employees) belonging to the Employer or in which the Employer has a pecuniary interest or for which the Employer is legally liable or held by the Employer in any capacity, whether the Employer is legally liable therefor or not, which the Employer shall during the term of this Insurance sustain or discover that they have sustained through larceny, theft, embezlement, forgery, misappropriation, wrongful abstraction, willful misapplication or other fraudulent or dishonest act or acts committed by any one or more of the Employees as defined, acting alone or in collusion with others. SECTION III - DEFINITIONS INSURING AGREEMENTS G AND H 1 . MONEY: The term 'Money' as used in this Insurance shall be deemed to mean currency, coin, bank notes, uncancelled and precancelled postage and unused postage in postage meters. 2. SECURITIES: The term 'Securities' shall be deemed to mean Federal Food Stamps, express, postal and bank money orders, postal notes, debentures, scrip, checks, warrants, transfers, coupons, demand and time drafts, bills of exchange, acceptances, promissory notes, certificates of deposits, certificates of stock, car trust certificates, interim receipts and certificates, warehouse receipts, bills of lading and all other instruments of a similar nature including mortgages upon real estate or upon chattels and upon interests therein, and assignments of such mortgages and instruments. 3. It is understood and agreed that this Insurance covers money and securities of the Assured or as respects which the Assured is legally liable or held by it in any capacity, whether or not the Assured is liable for the loss thereof. If legal proceedings are taken against the Assured to enforce a claim for money and securities so held, the Assured shall immediately notify the Underwriters in writing. Page 15 of 22 4. EMPLOYEES: The term 'Employees' shall mean not only persons compensated by the Assured but also those directed by the Assured, and including those independent contractors and/or services which may be considered as usually performed by employees of the Assured. 5. THEFT: The term 'Theft' shall include 'trick and device' . 6. ULTIMATE NET LOSS: The words 'ultimate net loss' in respect of this Section shall be understood to mean the actual loss sustained by the Assured after making deductions for all recoveries and salvages. INSURING AGREEMENT I 1. EMPLOYER: The term 'Employer' as used in this Section shall mean the Assured named in the Declarations and as further defined in General Insurance Agreement II. 2. EMPLOYEE OR EMPLOYEES: The terms 'Employee' or 'Employees' as used in this Section shall be deemed to mean respectively one or more of the natural persons who on the effective date of this Insurance or at any other time during the term of this Insurance are in the regular service of the Employer in the ordinary course of the Employer's business and who are compensated by salary, wages and/or commission, and whom the Employer has the right to govern and direct at all times in the performance of such service, but not to mean brokers, factors, commission merchants, consignees, contractors or other agents or representatives of the same general character. SECTION III - EXCLUSIONS THIS INSURANCE DOES NOT APPLY UNDER INSURING AGREEMENTS G AND H (a) to any fraudulent, dishonest or criminal act other than robbery or safe burglary or attempted thereat, committed by the Assured or by any officer, employee (except Brinks or Armored Car Employees) : trustee or authorized representative of the Assured, whether acting alone or in collusion with others; (b) to forgery by whomsoever committed. Page 16 of 22 SECTION III - CONDITIONS 1. Under INSURING AGREEMENTS G, H AND I Warranted free of all claims for losses not discovered within the term of this Insurance and for losses sustained and/or acts committed prior to July 1, 1986 (hereinafter called the 'Retroactive Date') but with the understanding that in the event of (a) the expiration of this Insurance by reason of non-renewal , or (b) the termination of this Insurance as an entirety, as provided in General Condition 6, the Assured shall have twelve calendar months following the date of such expiration or termination in which to discover losses sustained between the Retroactive Date and the date of such expiration or termination. Notwithstanding anything to the contrary contained herein it is understood and agreed that in the event of this Insurance being immediately succeeded by a similar Insurance with Underwriters on which the Retroactive Date is July 1, 1996 the said succeeding insurance shall be deemed to be a renewal hereof and in the discovery period provided herein shall not be operative. 2. Under INSURING AGREEMENT I (a) Upon the discovery of any loss hereunder this Insuring Agreement shall be treated as reinstated so as at all times to continue in force for the sum set forth herein notwithstanding any previous loss for which the Surety may have paid or be liable to pay hereunder provided however that in no event shall the Surety be liable under this Insurance for an amount greater than the limits of liability stated on account of any one loss or series of losses caused by the fraudulent or dishonest acts of any Employee or in which such Employee is concerned or implicated. (b) In case any reimbursement be obtained or recovery be made by the Employer or by the Surety on account of any loss covered under this Insurance, the net amount of such reimbursement or recovery, after deducting the actual cost of obtaining or making the same, shall be applied to reimburse the Employer in full for that part if any, of such loss in excess of this Insurance, and the balance if any, or the entire net reimbursement or recovery if there be no such excess loss, shall be applied to that part of such loss covered by this Insurance or, if payment shall have been made by the Surety. to its reimbursement therefore. The Employer shall execute all necessary papers and render all assistance not pecuniary to secure unto the Surety the rights provided for in this paragraph. The following shall not be reimbursement or recovery within the meaning of this paragraph: suretyship, insurance or reinsurance; also security or indemnity taken from any source by or for the benefit of the Surety. Page 17 of 22 (c) This Insurance shall be deemed cancelled as to any Employee immediately upon discovery by the Employer, of any fraudulent or dishonest act on the part of such Employee; or at 12.01 a.m. Standard Time as aforesaid upon the effective date specified in a written notice served upon the Employer or sent by registered mail . Such date if the notice be served shall be not less than fifteen days after such service, or if sent by registered mail , not less than twenty days after the date borne by the sender's registry receipt. (d) It is agreed that within the term 'Employees' are various public officials of the Named Assured who by law are required to be separately bonded. It is further agreed that this Section shall apply as excess insurance and then only after such legally required other insurance has been exhausted. SECTION IV - GENERAL CONDITIONS 1 . PREMIUM PROVISION: See Endorsement No. 2 attached. 2. SALVAGE AND RECOVERY CLAUSE: All salvages. recoveries and payments recovered or received subsequent to a loss settlement under this Insurance shall be applied as if recovered or received prior to the said settlement and all necessary adjustments shall be made by the parties hereto. 3. INSPECTIONS, AUDIT AND VERIFICATION OF VALUES: The Underwriters or their duly authorized representatives shall be permitted at all reasonable times during continuance of this Insurance to inspect the premises used by the Assured and to examine the Assured's books or records so Far as they relate to coverage afforded by this Insurance. 4. RECORDS: It is hereby understood and agreed that the records and books as kept by the Assured shall be acceptable to Underwriters in determining the amount of loss or damage covered hereunder. 5. DUE DILIGENCE CLAUSE: The Assured shall use due diligence and do and concur doing all things reasonably practicable to avoid or diminish any loss of or damage to the property herein insured. Page 18 of 22 6. CANCELLATION: This Insurance may be cancelled as of any anniversary date by either of the parties upon written notice to the other party, provided said notice is issued at least ninety (90) days prior to the said anniversary. NOTWITHSTANDING the aforementioned to the contrary, in the event of non-payment of premium by the Assured, Underwriters will give ten (10) days notice of cancellation in writing to the Assured and all coverage will terminate ten (10) days after the mailing of such notice. In the event of cancellation under the aforementioned circumstances the Assured shall bear the full amount of the Loss Fund as stipulated in PART I (EXCESS LOSS FUND PROTECTION AGREEMENT) . 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 so as to be equal to the minimum period of limitation permitted by such law. No cancellation or termination of this policy, as an entirety, whether by or at the request of the Named Assured or by the Underwriters shall take effect prior to the expiration of ninety (90) days after written notice of such cancellation or termination is sent by registered mail to the Commissioner of Insurance, State of Colorado, First Western Plaza, 303 W. Colfax Avenue, Suite 500, Denver, Colorado 80204 unless an earlier date of such cancellation or termination is approved by said Commissioner of Insurance, State of Colorado. 7. EXTENDED CLAIMS MADE PERIOD In the event of cancellation mentioned in GENERAL CONDITION 6 then the Assured, upon payment of an Additional Premium of not more than 100% of the total expiring premium and at not more than 100% of the total expiring annual Loss Fund, shall have the right to extend the period in which a Claim made against the Assured after the expiry date of this Insurance is treated by Underwriters as made on the expiry date of this Insurance for a period of 24 (twenty-four) months. PROVIDED always that such Claim results from an Accident which occurred prior to the date on which the extended claims made period began. In the event of the Assured invoking the foregoing Underwriters aggregate limits of liability, if any, as respects General Liability and Automobile Liability and their limit excess of the Assured's Loss Fund will be reinstated and will apply in full to claim(s) first made during the Extended Claims Made period. 8. CURRENCY: The premium and losses under this Insurance are payable in United States Currency. Payment of premium shall be made to Arthur J. Gallagher & Co. Page 19 of 22 9. BANKRUPTCY AND INSOLVENCY: In the event of the bankruptcy or insolvency of the Assured or any entity comprising the Assured, the Underwriters shall not be relieved of the payment of any claims hereunder because of such bankruptcy or insolvency. 10. OTHER INSURANCE: If the Assured has other Insurance against loss covered by this Insurance the Underwriters shall be liable, under the terms of this Insurance, only as excess of coverage provided by such other Insurance, and no monies payable or collectible from such other Insurance shall accrue in the aggregate loss fund of this Insurance. 11 . MORTGAGE CLAUSE: The interest of any mortgagor on property covered hereunder is included as if a separate endorsement were attached hereto to the extent of the amount of mortgage as of the date of loss subject to the limits of liability set forth in this Insurance. 12. CLAIMS: (APPLICABLE TO SECTIONS 1 AND III ONLY) The Assured shall immediately notify Underwriters through Gallagher Bassett Services, Inc. of any occurrence, the cost of which is likely to result in payment by Underwriters under this Insurance. Underwriters shall have the opportunity to be associated with the Assured in defense of any claims, suits or proceedings relative to an occurrence wherein the opinion of the Underwriters, their liability under this Insurance is likely to be involved, in which case the Assured and Underwriters shall cooperate to the mutual advantage of both. 13. LOSS PAYMENTS: When it has been determined that Underwriters are liable under this Insurance, Underwriters shall thereafter promptly reimburse the Assured for all payments made in excess of the amounts stated in Part I (EXCESS LOSS FUND PROTECTION AGREEMENT) and Part II (SPECIFIC EXCESS AGREEMENT) of the Limits Agreement. All adjusted claims shall be paid or made good to the Assured within thirty days after the presentation to Arthur J. Gallagher & Co. , and acceptance by Underwriters of satisfactory proof of interest and loss. Page 20 of 22 14. APPEAL: In the event the Assured and Underwriters are unable to agree to the advisability of appealing a judgment, a disinterested attorney, mutually agreeable to the Underwriters and the Assured, shall be retained and directed to render a written opinion as to his recommendation concerning such appeal . Such written recommendation shall be binding on both the Assured and Underwriters. Fees of such retained attorney shall be borne equally by both parties for the services of rendering his recommendation only. The Assured's portion of such fee shall not accrue in the aggregate loss fund. 15. LITIGATION PROCEEDINGS: No suit to recover on account of loss under this Insurance shall be brought until ninety days after the proof of loss shall have been furnished, nor at all unless commenced within twenty-seven months from the date upon which loss occurred, if such loss is within the knowledge of the Assured; if not, the twenty-seven months shall begin upon notice to the Assured of such loss or claim. 16. SUBROGATION: The Underwriters shall be subrogated to all rights which the Assured may have against any person or other entity in respect to any claim or payment made under this Insurance, and the Assured shall execute all papers required by the Underwriters and shall cooperate with the Underwriters to secure Underwriter's rights. In case any reimbursment obtained or recovery made by the Assured or the Underwriters on account of any loss covered by this Insurance, the net amount of such reimbursement or recovery, after deducting the actual cost of obtaining or making the same, shall be first applied in the following order: (a) Amount of loss which exceeds the applicable limit of liability. (b) To reduce the Underwriters' loss until the Underwriters are fully reimbursed. (c) To reduce the Assured's loss because of the application of the aggregate loss fund. 17. WAIVER OF SUBROGATION: This Insurance shall not be invalidated if the Assured by written agreement has waived or shall waive its right of recovery from any party for loss or damage covered hereunder; provided, that any such waiver is made prior to the occurrence of said loss or damage. Page 21 of 22 18. CONFLICTING STATUTES: In the event that any provision of this Insurance is unenforceable by the Assured under the laws of any State or other jurisdiction wherein it is claimed that the Assured is liable for any injury covered hereby because of non-compliance with any statute thereof, then this Policy shall be enforceable for the Assured with the same effect as if it complied with such statutes. 19. ASSIGNMENT: Assignment of interest under this Insurance shall not bind the Underwriters until the Underwriters; consent is endorsed hereon. 20. CHANGES: By acceptance of this Insurance the Assured agrees that it embodies all agreements existing between the Assured and Underwriters or any of its agents relating to this Insurance. None of the provisions, conditions or other terms of this Insurance shall be waived or altered except by endorsement; nor shall notice to any agent or knowledge possessed by any agent or by any other person be held to effect a waiver or change in any part of this Insurance. 21 . WAR CLAUSE: Coverage does not apply under this Insurance for loss or damage directly or indirectly occasioned by, happening through or in consequence of war, invasion, acts of foreign enemies, any weapon of war employing atomic fission or radioactive force whether in time of peace or war, hostilities (whether war be declared or not) , civil war, rebellion, revolution, insurrection, military or usurped power, confiscation or nationalization or requisition or destruction of or damage to property by or under the order of any government or public or local authority unless such acts of destruction by order of civil authority is at the time of and for the purpose of preventing spread of fire; or claims or liability arising directly or indirectly from nuclear fission, nuclear fusion or radioactive contamination. 22. FRAUDULENT CLAIMS: If the Assured shall make any claim knowing the same to be false or fraudulent, as regards amount or otherwise, this Insurance shall become void and all claim hereunder shall be forfeited. ATTACHING TO AND FORMING PART OF POLICY NO. ISL 3798 DATED: 2nd October, 1987. INTERNATIONAL SPECIAL RISK SERVICES, INC. BY ( t-1/6ac.-4-.--P-2-4-c2 &ITECEi u'9Gk5 Page 22 of 22 0451W OCT 1Z 1987 I.S.R.S./FC ENDORSEMENT attaching to and forming part of Policy No. ISL 3798 in the name of COLORADO COUNTIES CASUALTY AND PROPERTY POOL Effective date of this endorsement is July 1, 1987 Endorsement No. 1 ERRORS AND OMISSIONS THIS IS A CLAIMS MADE ENDORSEMENT IT IS AGREED that Section II Agreement C is amended to include the following: The Underwriters agree, subject to the terms and conditions hereof, to indemnify the Assured (as herein defined) against any claim or claims made against them individually or collectively during the period of this Insurance, by reason of a wrongful act, error or omission, whenever or wherever committed or alleged to have been committed while acting in their capacity as an official , trustee, director or council member. IT IS FURTHER agreed: (I) There shall be no liability hereunder for any claim made against the Assured for any wrongful act, error or omission committed or alleged to have been committed prior to July 1, 1986 (hereinafter referred to as the "Retroactive Date") . (2) In the event of non-renewal or termination of this Insurance, then this Insurance shall extend to apply to claims made against the Assured during the twelve (12) calendar months following immediately upon such expiration or termination, but only for wrongful act, error or omission, committed or alleged to have been committed between the Retroactive Date and such expiration or termination. For the purposes of this Endorsement the unqualified word "Assured" shall mean the Assured named in the Declarations and as further defined in General Insurance Agreement II including all persons who were, now or shall be lawfully elected or lawfully appointed officials, trustees, directors or council members of the Assured in the regular service of the Assured during the existence of this Insurance, and any heir, executor, administrator, assign or legal representative of said persons in the event of their death or incapacity. Page 1 of 2 Underwriters shall not be liable to make payment for loss in connection with any claim made against the Assured if a judgment or final adjudication in any action brought against the Assured shall be based on a determination that acts of fraud or dishonesty were committed by the Assured. Subject otherwise to all terms, clauses and conditions as heretofore. DATED: 2nd October, 1987. INTERNATIONAL SPECIAL RISK SERVICES, INC. j n 1014M/0451W ENDORSEMENT attaching to and forming part of Policy No. ISL 3798 in the name of COLORADO COUNTIES CASUALTY AND PROPERTY POOL Effective date of this endorsement is July 1 , 1987 Endorsement No. 2 IT IS AGREED that the premium for the period July 1, 1987 to July 1, 1988 is $678,799, and future premium instalments will be based upon the full updated information given to the Underwriters by the Assured ninety (90) days prior to each anniversary, being July 1, at which time the premium to be charged for the forthcoming period of insurance will be adjusted accordingly by Underwriters. • Subject otherwise to all terms, clauses and conditions as heretofore. DATED: 2nd October, 1987. INTERNATIONAL SPECIAL RISK nSER/VICES, INC. BY eow/� , �✓wc-LAW 0451W ENDORSEMENT attaching to and forming part of Policy No. ISL 3798 in the name of COLORADO COUNTIES CASUALTY AND PROPERTY POOL Effective date of this endorsement is July 1, 1987 Endorsement No. 3 Type/Coverage: EXCESS ALL RISKS OF PHYSICAL LOSS OR DAMAGE, OWNED BUILDERS RISK, ARCHITECTS FEES, ACCOUNTS RECEIVABLE, VALUABLE PAPERS AND RECORDS, ELECTRONIC DATA PROCESSING MEDIA/EQUIPMENT/EXTRA EXPENSE, EXTRA EXPENSE, TRANSIT, AUTO PHYSICAL DAMAGE, COMPREHENSIVE GENERAL LIABILITY, HOSTS LIQUOR LAW LIABILITY, AUTO LIABILITY, HIRED AND NON-OWNED AUTO LIABILITY, NO FAULT LIABILITY, POLICE PROFESSIONAL LIABILITY, ERRORS AND OMISSIONS, BLANKET CONTRACTUAL LIABILITY, CEMETERY MALPRACTICE, EMPLOYEE BENEFITS LIABILITY, GARAGE KEEPERS LEGAL LIABILITY, NON-OWNED AIRCRAFT LIABILITY, WATERCRAFT LIABILITY, AUTO AND PREMISES MEDICAL PAYMENTS, MONEY AND SECURITIES, EMPLOYEE FIDELITY INCLUDING FAITHFUL PERFORMANCE, DEPOSITORS FORGERY, COUNTERFEIT PAPERS, FXCLUDING INVERSE CONDEMNATION, SEXUAL MISCONDUCT, SEEPAGE AND POLLUTION ABSOLUTELY, HOSPITAL/CLINILJiALPRACTICE AND ASBESTOS ABSOLUTELY. Subject otherwise to all terms, clauses and conditions as heretofore. DATED: 2nd October, 1987. INTERNATIONAL SPECIAL //RISK SERVICES,/ INC. BY 6Je44 . �.,-c.cL�r".� <R c 0451W ENDORSEMENT attaching to and forming part of Policy No. ISL 3798 in the name of COLORADO COUNTIES CASUALTY AND PROPERTY POOL Effective date of this endorsement is July 1, 1987 Endorsement No. 4 It is understood and agreed that the participating member counties hereunder are as follows:- ALAMOSA LAKE TELLER ARCHULETA LA PLATA WASHINGTON BACA LARIMER WELD BENT LAS ANIMAS YUMA CHAFFEE LINCOLN CHEYENNE LOGAN CLEAR CREEK MINERAL CONEJOS MONTEZUMA COSTILLA MONTROSE CROWLEY MORGAN DOLORES OTERO DOUGLAS OURAY EAGLE PARK ELBERT PHILLIPS FREMONT PITKIN GARFIELD PROWERS GILPIN PUEBLO GRAND RIO BLANCO GUNNISON RIO GRANDE HINSDALE ROUTT HUERFANO SAGUACHE JACKSON SAN JUAN KIOWA SEDGWICK KIT CARSON SUMMIT Subject otherwise to all terms, clauses and conditions as heretofore. DATED: 2nd October, 1987. INTERNATIONAL SPECIAL RISK SERVICES, INC. BY rt4 , oti 0451W ENDORSEMENT attaching to and forming part of Policy No. ISL 3798 in the name of COLORADO COUNTIES CASUALTY AND PROPERTY POOL Effective date of this endorsement is July 1, 1987 Endorsement No. 5 ACCOUNTS RECEIVABLE EXTENSION INSURING CLAUSE In consideration of the premium paid and subject to the terms, conditions and exclusions of the policy to which this Extension is attached, and to the following terms, conditions and exclusions, this insurance is extended to cover: 1. SUBJECT OF INSURANCE A. All sums due to the Assured from customers' , provided the Assured is unable to effect collection thereof as the direct result of loss of or damage to records of accounts receivable; B. Interest charges on any loan to offset impaired collections pending repayment of such sums made uncollectable by such loss or damage; C. Collection expense in excess of normal collection cost and made necessary because of such loss or damage; D. Other expenses, when reasonably incurred by the Assured in re-establishing records of accounts receivable following such loss or damage. 2. PERILS INSURED All Risks of Direct Physical Loss or Damage to the Assured's records of accounts receivable occurring during the period of the policy to which this extension is attached, except as hereinafter provided. PERILS EXCLUDED This Extension does not insure against:- 1. loss due to any fraudulent, dishonest or criminal act by any Assured, a Partner therein, or an Officer, Director or Trustee thereof, whether acting alone or in collusion with others; 2. loss due to bookkeeping, accounting or billing errors or omissions; 3. loss, the proof of which as to factual existence, is dependent upon an audit of records or an inventory computation; but this shall not preclude the use of such procedures in support of claim for loss which the Assured can prove, through evidence wholly apart therefrom, is due solely to a risk of loss to records of accounts receivable not otherwise excluded hereunder; Page 1 of 3 4. loss due to alteration, falsification, manipulation, concealment, destruction, or disposal of records of accounts receivable committed to conceal the wrongful giving, taking, obtaining or witholding of money, securities or other property but only to the extent of such wrongful giving, taking, obtaining or witholding; 5. loss due to electrical or magnetic injury, disturbance or erasure of electronic recordings, except by lightning. 6. to war risks or nuclear risks as excluded in the Policy to which this Extension is attached. SUM INSURED The Underwriters hereon shall not be liable under this Extension for more than the respective sum insured stated in the Declarations in respect of each loss or series of losses arising out of one event. CONDITIONS 1. RECOVERIES After payment of loss, all amounts recovered by the Assured on accounts receivable for which the Assured has been indemnified shall belong and be paid to the Underwriters by the Assured up to the total of loss paid by the Underwriters; but all recoveries in excess of such amounts shall belong to the Assured. 2. ASSURED'S DUTIES UPON OCCURRENCE OF LOSS Upon the occurrence of any loss which may result in a claim hereunder, the Assured shall : A. give notice thereof as soon as practicable to the Underwriters or any of their authorized agents and, if the loss is due to a violation of law, also to the police; B. file detailed proof of loss, duly sworn to, with the Underwriters promptly on expiration of ninety days from the date on which the records of accounts receivable were lost or damaged. Upon the Underwriters request, the assured shall submit to examination by the Underwriters, subscribe the same, under oath if required, and produce for the Underwriters' examination all pertinent records, all at such reasonable times and places as the Underwriters shall designate, and shall cooperate with the Underwriters in all matters pertaining to loss or claims with respect thereto, including rendering of all possible assistance to effect collection of outstanding accounts receivable. 3. DETERMINATION OF RECEIVABLES: DEDUCTIONS When there is proof that a loss covered by this Extension has occurred but the Assured cannot accurately establish the total amount of accounts receivable outstanding as of the date of such loss, such amount shall be based on the Assured't monthly statements and shall be computed as follows: Page 2 of 3 A. determine the amount of all outstanding accounts receivable at the end of the same fiscal month in the year immediately preceding the year in which the loss occurs; B. Calculate the percentage of increase or decrease in the average monthly total of accounts receivable for the twelve months immediately preceding the month in which the loss occurs, or such part thereof for which the Assured has furnished monthly statements to the Underwriters as compared with such average for the same months of the preceding year; C. the amount determincd under (A) above, increased or decreased by the percentage calculated under (B) above, shall be the agreed total amount of accounts receivable as of the last day of the fiscal month in which said loss occurs; D. the amount determined under (C) above shall be increased or decreased in conformity with the normal fluctuations in the amount of accounts receivable during the fiscal month involved, due consideration being given to the experience of the business since the last day of the last fiscal month for which statement has been rendered. There shall be deducted from the total amount of accounts receivable, however established, the amount of such accounts evidenced by records not lost or damaged, or otherwise established or collected by the Assured, and an amount to allow for probable bad debts which would normally have been uncollectable by the Assured. All unearned interest and service charges shall be deducted. Subject otherwise to all terms and conditions heretofore. DATED: 2nd October, 1987. INTERNATIONAL SPECIAL RISK SERVICES, INC. BY /It)//It)/ 9-c4-c44..Qa / / Page 3 of 3 1001/0451W ENDORSEMENT attaching to and forming part of Policy No. ISL 3798 in the name of COLORADO COUNTIES CASUALTY AND PROPERTY POOL Effective date of this endorsement is July 1, 1987 Endorsement No. 6 VALUABLE PAPERS AND RECORDS EXTENSION 1 . PROPERTY COVERED: Underwriters agree to pay in respect of loss or damage to valuable papers and records, (hereinafter referred to as 'property') . 2. THIS EXTENSION INSURES AGAINST: All risks of direct Physical Loss of or damage to the property covered, except as hereinafter provided, occurring during the period of the Policy to which this Extension is attached. 3. PROTECTION OF VALUABLE PAPERS AND RECORDS: Insurance under this Extension shall apply only while the property is contained in the premises of the Assured, and shall be kept in protective receptacle(s) at all times when the premises are not open for business, except while such property is in actual use. 4. AUTOMATIC EXTENSION: Such insurance as is afforded by this Extension applies while the property is being conveyed outside the premises and while temporarily within other premises, except for storage, provided Underwriters liability for such loss or damage shall not exceed ten percent of the combined limits of Insurance stated in the Declarations, nor Fifty Thousand Dollars, whichever is less. 5. REMOVAL: Such insurance as is afforded by this Extension applies while the property is being removed to and while at a place of safety because of imminent danger of lcss and while being returned from such place, provided the Assured gives written notice to Underwriters of such removal within ten days thereafter. EXCLUSIONS THIS EXTENSION DOES NOT APPLY; 1 . to loss or damage due to wear and tear, gradual deterioration, vermin or inherent vice; 2. to loss or damage due to any dishonest, fraudulent or criminal act by any Assured, a Partner therein or an Officer, director or Trustee thereof, whether acting alone or in collusion with others; 3. to loss of or damage to property, if such property cannot be replaced with other of like kind or quality; Page 1 of 3 4. to loss of or damage to property held as samples or for sale or delivery after sale; 5. to loss due to electrical or magnetic injury, disturbance or erasure of electronic recordings, except by lightning; 6. to war risks or nuclear risks as excluded in the Policy to which this Extension is attached. SPECIAL CONDITIONS 1. Definitions: 'Property' means written, printed or otherwise inscribed documents and records, including books, maps, films, drawings, abstracts, deeds, mortgages and manuscripts, but does not mean money or securities. 'Premises' means the interior of that portion of the building which is occupied by the Assured for business operations. 'Money' means currercy, coins, bank notes and bullion; and travellers checks, register checks and money orders held for sale to the public. 'Securities' means all negotiable and non-negotiable instruments or contracts representing either money or other property and includes revenue and other stamps in current use, tokens and tickets, but does not include money. 2. Ownership of Property: Interests Covered The insured property may be owned by the Assured or held by him in any capacity; provided, the Insurance applies only to the interest of the Assured in such property, including the Assured's liability to others, and does not apply to the interests of any other person or organization in any of said property unless included in the Assured's proof of loss. 3. Limits of Liability; Valuation; Settlement Option The limit of Underwriters liability for loss shall not exceed the actual cash value of the property at time of loss nor what it would then cost to repair or replace the property with other of like kind and quality, nor the applicable limit of Insurance. The Underwriters may pay for the loss in money or may repair or replace the property and may settle any claim for loss of the property either with the Assured or the Owner thereof. Application of the Insurance to property of more than one person shall not operate to increase the applicable limit of Insurance. Page 2 of 3 4. Assured's Duties When Loss Occurs Upon knowledge of loss or of an occurrence which may give rise to a claim for loss, the Assured shall : (a) give notice thereof as soon as practicable to the Underwriters or any of its authorized Agents and, if the loss is due to a violation of law, also to the Police; (b) file detailed proof of loss, duly sworn to, with the Underwriters promptly upon the expiration of ninety days after the discovery of loss. Upon the Underwriters request, the Assured shall submit to examination by the Underwriters, subscribe the same, under oath if required, and produce for the Underwriters' examination all pertinent records, all at such reasonable times and places as the Underwriters shall designate, and shall cooperate with the Underwriters in all matters pertaining to loss or claims with respect thereto. 'Underwriters shall , in addition to the applicable limit of liability of this Extension, reimburse the Assured for all reasonable expenses, other than loss of earnings, incurred at Underwriters' written request' . 5. Changes Notice to any representative or knowledge possessed by any representative or by any other person shall not effect a waiver or a change in any part of this Extension or estop Underwriters from asserting any right under the terms of this Extension nor shall the terms of this Extension be waived or changed, except by endorsement issued to form a part of this Extension. Subject otherwise to all terms, clauses and conditions as heretofore. DATED: 2nd October, 1987. INTERNATIONAL SPECIAL RISK SERVICES, INC. BY tee-e�c/i • ,44-4v�'t� Page 3 of 3 1036/0451W ENORSEMENT attaching to and forming part of Policy No. ISL 3798 in the name of COLORADO COUNTIES CASUALTY AND PROPERTY POOL Effective date of this endorsement is July 1, 1987 Endorsement No. 7 DATA PROCESSING MEDIA EXTENSION 1. PROPERTY INSURED: Active data processing media, being property of the Assured or property of others for which the Assured may be liable. 2. PROPERTY EXCLUDED: This Policy does not insure accounts, bills, evidences of debt, valuable papers, records, abstracts, deeds, manuscripts or other documents except as they may be converted to data processing media form, and then only in that form, or any data processing media which cannot be replaced with other of like kind and quality. 3. PERILS INSURED: This Extension insures against all risks of direct physical loss or damage to the property covered, except as hereinafter provided. 4. PERILS EXCLUDED: This Extension does not insure against loss, damage, or expense resulting from or caused directly or indirectly by: A. Any interruption in electric power supply by power surge or brown out originating more than one hundred (100) feet away from the building containing the property insured; B. Dryness or dampness of atmosphere, extremes of temperature, corrosion, rust unless directly resulting from physical damage to the data processing system's air conditioning facilities caused by a peril not excluded by the provisions of this Extension; C. Delay or loss of market; D. Inherent vice, wear, tear, gradual deterioration, depreciation or vermin; E. any dishonest, fraudulent or criminal act by an Assured, a partner therein or an officer, director or trustee thereof, whether acting alone or in collusion with others; F. War risk or Nuclear risks as excluded in the Policy to which this Extension is attached. Page 1 of 2 5. VALUATION: The Underwriters shall not be liable beyond the actual reproduction cost of the property; if not replaced or reproduced, blank value of media; all subject to the applicable limit of liability stated in the "Declarations". 6. DEFINITIONS: The term "active data processing media" wherever used in this policy shall mean all forms of converted data and/or program and/or instruction vehicles employed in the Assured's data processing operation, except all such UNUSED property. Subject otherwise to all terms, clauses and conditions as heretofore. DATED: 2nd October, 1987. INTERNATIONAL SPECIAL RISK SERVICES, INC. BY Page 2 of 2 1009/0451W ENDORSEMENT attaching to and forming part of Policy No. ISL 3798 in the name of COLORADO COUNTIES CASUALTY AND PROPERTY POOL Effective date of this endorsement is July 1, 1987 Endorsement No. 8 DATA PROCESSING SYSTEM EQUIPMENT EXTENSION 1. PROPERTY COVERED: Data processing system including equipment and component parts thereof owned by the Assured or leased, rented or under the control of the Assured. 2. PROPERTY EXCLUDED: A. Active data processing media which is hereby defined as meaning all forms of converted data and/or program and/or instruction vehicles employed in the Assured's data processing operation; B. Accounts, bills, evidences of debt, valuable papers, records, abstracts, deeds, manuscripts, or other documents; C. Property rented or leased to others while away from the premises of the Assured. 3. PERILS INSURED: Insures against all risks of direct physical loss or damage to the property covered, except as hereinafter provided. 4. PERILS EXCLUDED: This Extension does not insure against loss, damage, or expense caused dire:tly or indirectly by: A. Damage due to mechanical failure, faulty construction, error in design unless fire or explosion ensues, and then only for loss, damage, or expense caused by such ensuing fire or explosion; Page 1 of 2 B. Inherent vice, wear, tear, gradual deterioration or depreciation; C. Any dishonest, fraudulent or criminal act by an Assured, a partner therein or an officer, director or trustee thereof, whether acting along or in collusion with others; D. Dryness or dampness of atmosphere, extremes of temperature, corrosion, rust unless directly resulting from physical damage to the data processing system's air conditioning facilities caused by a peril not excluded by the provisions of this Extension; E. War risk or nuclear risks as excluded in the Policy to which this Extension is attached. 5. VALUATION: Replacement Cost - The Underwriters shall not be liable beyond the actual retail replacement cost of the property at the time any loss or damage occurs and the loss or damage shall be ascertained or estimated on the basis of the actual cash retail replacement cost of property similar in kind to that insured at the place of and immediately preceding the time of such loss or damage, but in no event to exceed the limit of liability stipulated in the "Declarations" . 6. DIFFERENCE IN CONDITIONS: It is a condition of this Insurance that the Assured shall file with Arthur J. Gallagher & Co. a copy of any lease or rental agreement pertaining to the property insured hereunder insofar as concerns the lessors' liability for loss or damage to said property, and coverage afforded hereunder shall be only for the difference in conditions between those contained in said lease or rental agreement and the terms of this Extension. The Assured agrees to give the Underwriters thirty days notice of any alteration, cancellation or termination of the above mentioned lease or rental agreement pertaining to the lessors' liability. Subject otherwise to all terms, clauses and conditions as heretofore. DATED: 2nd October, 1987. INTERNATIONAL SPECIAL RISK SERVICES, INC. BY V-e-C ,}1 , Page 2 of 2 1010/0451W ENDORSEMENT attaching to and forming part of Policy No. ISL 3798 in the name of COLORADO COUNTIES CASUALTY AND PROPERTY POOL Effective date of this endorsement is July 1 , 1987 Endorsement No. 9 DATA PROCESSING EXTRA EXPENSE EXTENSION 1. SUBJECT OF INSURANCE AND PERILS INSURED: This extension insures against the necessary Extra Expense, as hereinafter defined, incurred by the Assured in order to continue as nearly as practicable the normal operation of its business, immediately folowing damage to or destruction of the data processing system including equipment and component parts thereof and data processing media therefor, owned, leased, rented or under the control of the Assured, as a direct result of all risks of physical loss or damage, but in no event to exceed the amount indicated in the 'Declarations' . This Extension includes the actual loss as covered hereunder, sustained during the period of time, hereinafter defined, (1) when as a direct result of a peril insured against the premises in which the property is located is so damaged as to prevent access to such property or (2) when as a direct result of a peril insured against, the air conditioning system or electrical system necessary for the operation of the data processing equipment is so damaged as to reduce or suspend the Assured's ability to actually perform the operations normally performed by the data processing system. 2. MEASURE OF RECOVERY: If the above described property is destroyed or so damaged by the perils insured against occurring during the term of this Extension so as to necessitate the incurrence of Extra Expense (as defined in this Extension) , Underwriters shall be liable for the Extra Expense so incurred, not exceeding the actual loss sustained, for not exceeding such length of time, hereinafter referred to as the 'period of restoration' , commencing with the date of damage or detruction and not limited by the date of expiration of this Extension as shall be required with the exercise of due diligence and Page 1 of 3 dispatch to repair, rebuild, or replace such part of said property as may be destroyed or damaged. It is further agreed that this extension in coverage shall not operate to increase the Underwriters' limits of liability hereunder. 3. EXTRA EXPENSE DEFINITION: The term 'Extra Expense' wherever employed in this Extension is defined as the excess (if any) of the total cost during the period of restoration of the operation of the business over and above the total cost of such operation that would normally have been incurred during the same period had no loss occurred; the cost in each case to include expense of using other property or facilities of other concerns or other necessary emergency expenses. In no event, however, shall Underwriters be liable for loss of profits or earnings resulting from diminution of business, nor for any direct or indirect property damage loss insurable under Property Damage policies, or for expenditures incurred in the purchase, contruction, repair or replacement of any physical property unless incurred for the purpose of reducing any loss under this Extension not exceeding, however, the amount in which the loss is so reduced. Any salvage value of property so acquired which may be sold or utilized by the Assured upon resumption of normal operations, shall be taken into consideration in the adjustment of any loss hereunder. 4. EXCLUSIONS: It is a condition of the insurance that Underwriters shall not be liable for Extra Expense incurred as a result of: A. Any local or State ordinance or law regulating construction or repair of buildings; B. The Suspension, lapse or cancellation of any lease, license, contract or order; C. Interference at premises by strikers or other persons with repairing or replacing the property damaged or destroyed or with the resumption or continuation of the Assured's occupancy; D. Loss or destruction of accounts, bills, evidence of debt, valuable papers, records, abstracts, deeds, manuscripts or other documents except as they may be converted to data processing media form and then only in that form; E. Loss of or damage to property rented or leased to others while away from the premises of the Assured; F. Error in machine programming or instructions to machine; Page 2 of 3 G. Inherent vice, wear, tear, gradual deterioration of depreciation; H. Any dishonest, fraudulent or criminal act by the Assured, a partner therein or an officer, director or trustee thereof, whether acting alone or in collusion with others; I. Any interruption in electric power supply by power surge or brown out originating more than one hundred (100) feet away from the building the property covered; J. Delay or loss of market; K. War risks or nuclear risks as excluded in the Policy to which this Extension is attached. 5. RESUMPTION OF OPERATIONS: As soon as practicable after any loss, the Assured shall resume complete or partial business operations of the insured property and, in so far as practicable, reduce or dispense with such additional charges and expenses as are being incurred. 6. INTERRUPTION BY CIVIL AUTHORITY: This Policy is extended to include necessary Extra Expense incurred by the Assured as covered hereunder, during the length of time, not exceeding two consecutive weeks, when as a direct result of damage to or destruction of property adjacent to the premises herein described by the peril (s) insured against, access to such described premises is specifically prohibited by order of civil authority. 7. DEFINITIONS: The term "Normal " wherever used in this Extension shall mean: The condition that would have existed had no loss occurred. 8. DEDUCTIBLE: Each and every loss occurring hereunder shall be adjusted seperately and from the amount of each such loss when so adjusted the amount indicated in PART 1 (AGGREGATE AGREEMENT)2) shall be deducted. All other terms and conditions of this Policy not in conflict herewith remain unchanged. DATED: 2nd October, 1987. INTERNATIONAL SPECIAL RISK SERVICES, INC. BY ir- ei , (JJ Page 3 of 3 1008/0451W ENDORSEMENT attaching to and forming part of Policy No. ISL 3798 in the name of COLORADO COUNTIES CASUALTY AND PROPERTY POOL Effective date of this endorsement is July 1, 1987 Endorsement No. 10 EXTRA EXPENSE 40/80/100% of LIMIT It is agreed that if the property insured by Insuring Agreement A of Section 1 is damaged or destroyed by perils insured against in said Insuring Agreement A during the period of this Insurance so as to necessitate the incurrence of Extra Expense (as defined below) the Underwriters shall be liable for the Extra Expense so incurred, not exceeding the actual loss sustained, for not exceeding such length of time, hereinafter referred to as the "period of restoration". It is further agreed that this extension in coverage shall not operate to increase the Underwriters limits of liability hereunder. Underwriters shall be liable for no greater percentage of the Limits of Liability as set forth in Part II (Specific Excess Agreement) of this Policy than is stated below for the determined period of restoration. 40% if period of restoration is not in excess of one month; 80% if period of restoration exceeds one month but does not exceed two months; 100% if period of restoration exceeds two months. DEFINITIONS (a) Extra Expense: The term "Extra Expense" means the excess (if any) of the total cost incurred during the period of restoration chargeable to the operation of the Assured's business, over and above the total cost that would normally have been incurred to conduct the business during the same period had no damage or destruction occurred. Page 1 of 3 Any salvage value of property obtained for temporary use during the period of restoration which remains after resumption of normal operations, shall be taken into consideration in the adjustment of any loss hereunder. (b) Normal : The term "Normal " wherever used herein shall mean; tho condition that would have existed had no loss occurred. (c) Month: The word "month" wherever used herein means 30 consecutive days. (d) Period of Restoration: The term "period of restoration" means such length of time commencing with the date of damage and not limited by the date of expiration of this policy, as would be required with the exercise of due diligence and dispatch to repair, rebuild or replace such part of the Assured's property as has been damaged or destroyed. CONDITIONS (a) Resumption of Operations: It is a condition of this Insurance that as soon as practicable, the Assured shall resume normal operations of the business and shall dispense with such extra expense. (b) Interruption by Civil Authority: Liability hereunder is extended to include actual loss as covered hereunder, sustained during the period of time, not exceeding two weeks, when as a direct result of a peril insured against, access to the premises in which the property described is located, is prohibited by order of civil authority. EXCLUSIONS In addition to the General Exclusions of this Insurance, Underwriters shall not be liable for Extra Expense resulting from: (a) The suspension, lapse or cancellation of any lease, license, contract or order beyond the period of restoration; (b) Interference at premises by strikers or other persons with rebuilding, repairing or replacing the property damaged or destroyed or with the resumption or continuation of business; (c) Enforcement of any local or state ordinance or law regulating construction, repair or demolition of buildings or structures; Page 2 of 3 Further, Underwriters shall not be liable for: (a) more than the amount set forth in the limits of liability for each premises; (b) loss of income; (c) the cost of repairing or replacing any of the real or personal property covered hereunder, or the cost of research or other expense necessary to replace or restore damaged or destroyed books of account, abstracts, drawings, card index systems or other records (including film, tape, disc, drum, cell or other magnetic recording or storage media for electronic data processing) , that have been damaged or destroyed by the perils insured against, except cost in excess of the normal cost of such repair, replacement or restoration necessarily incurred for the purpose of reducing loss under this policy. In no event shall such excess cost exceed the amount by which the total extra expense loss otherwise payable under this policy is thereby reduced; (d) loss resulting from theft of any property which at the time of loss is not an integral part of a building or structure (except direct loss by pillage and looting occurring during and at the immediate place of a riot or civil commotion) , unless loss by a peril not excluded in this policy ensues from theft or attempted theft, and then the Underwriters shall be liable for only such ensuing loss; (e) any other consequential or remote loss. Subject otherwise to all terms, clauses and conditions as heretofore. DATED: 2nd October, 1987. INTERNATIONAL SPECIAL RISK SERVICES, INC. BY iS-c./ i , Page 3 of 3 1015/0451 ENDORSEMENT attaching to and forming part of Policy No. ISL 3798 in the name of COLORADO COUNTIES CASUALTY AND PROPERTY POOL Effective date of this endorsement is July 1, 1987 Endorsement No. 11 TRANSIT EXTENSION INSURING CLAUSE In consideration of the premium paid and subject to the terms, limits and conditions of the policy to which this Extension is attached and to the following conditions and exclusions, this insurance is hereby extended to cover: Personal property of the Assured or property held by the Assured or property held by the Assured in trust or on commission or on consignment for which the Assured may be held legally liable while in due course of transit within the limits of the Continental United States of America (excluding Hawaii ) and Canada, against All Risks of Direct Physical Loss or Damage to the property insured occurring during the period of this policy (including general average and salvage charges on shipments covered while waterborne) . PERILS EXCLUDED This extension does not insure against: 1) Loss or damage to personal property resulting from: shrinkage, evaporation, loss of weight, leakage, breakage of glass or other fragile articles, marring, scratching, exposure to light, or change in colour, texture or flavour, unless such loss is caused directly by fire or the combating thereof, lightning, windstorm, hail , explosions, strike, riot or civil commotion, aircraft, vehicles, breakage of pipes or apparatus, sprinkler leakage, vandalism and malicious mischief, theft or attempted theft. 2) Loss of use, delay or loss or markets. 3) Loss or damage caused by or resulting from moth, vermin, termites, or other insects, inherent vice, latent defect, wear, tear or gradual deterioration; contamination; rust, wet or dry rot, mould, dampness of atmosphere, smog or extremes of temperature. Page 1 of 3 4) Loss or damage caused by or resulting from misappropriation, conversion, infidelity or any dishonest act on the part of the Assured or other party of interest, his or their employees or agents or others to whom the property may be delivered or entrusted (carriers for hire excepted) . 5) Loss or damage to the property insured occasioned by war, invasion, hostilities, acts of foreign enemies, civil war, rebellion, insurrection, military or usurped power or martial law or confiscation by order of any Government of public authority. 6) Loss or damage arising directly or indirectly from nuclear reaction, nuclear radiation or radioactive contamination may have been caused. Nevertheless if a fire arises directly or indirectly from nuclear reaction, nuclear radiation or radioactivbe contamination any loss of damage arising directly from that fire shall (subject to the provisions of this Policy) be covered excluding however all loss or damage caused by nuclear reaction, nuclear radiation or radioactive contamination arising directly or indirectly from that fire, 7) Loss or damage caused by breakdown or derangement of refrigerating units. DEDUCTIBLE(S) Each loss or series of losses arising out of one event shall be adjusted seperately and from the amount of each such adjusted loss the sum(s) stated in PART I (AGGREGATE AGREEMENT)2) shall be deducted. PROPERTY EXCLUDED This Extension does not cover: 1) a. Aircraft, watercraft, vehicles designed for highway use, animals, jewellery, precious stones and furs or garments trimmed with fur. b. Accounts, tills, currency, money, notes, securities, deeds, evidences of debt and valuable papers. c. Data processing equipment and media, including but not limited to film, tape, disc, drum, cell and other recording or storage media for data processing. 2) Property in due course of ocean marine transit. 3) Shipments by mail after delivery into the custody of the Post Office Department. Page 2 of 3 4) Samples whilst in the care, custody or control of salesmen. CONDITIONS 1) The Assured may accept without prejudice to this insurance the ordinary bills of lading or receipts issued by carriers including those containing released and/ or partially released value provisions, but the Assured shall not enter into any special agreement with carriers releasing them from their common law or statutory liability. 2) Property insured hereunder shall be valued as follows: A. Sold property at the actual net invoice price of the Assured. B. Unsold property at the actual cash value of the property at the time any loss or damage occurs with proper deduction for depreciation and in no event to exceed what it would cost to repair or replace the property with material of like kind and quality. Subject otherwise to all terms and conditions as heretofore. DATED: 2nd October, 1987. INTERNATIONAL SPECIAL RISKSERVICES, INC. BY ear)/ O�v /ct J Page 3 of 3 1032/0451W ENDORSEMENT attaching to and forming part of Policy No. ISL 3798 in the name of COLORADO COUNTIES CASUALTY AND PROPERTY POOL Effective date of this endorsement is July 1, 1987 Endorsement No. 12 EMPLOYEE BENEFIT LIABILITY THIS IS A CLAIMS MADE ENDORSEMENT In consideration of the premium charged and subject to the terms, exclusions and definitions hereinafter mentioned Underwriters agree to pay on behalf of the Assured all sums which the Assured shall become legally obligated to pay as a result of damages sustained by an employee, prospective employee, former employee or the beneficiaries or legal representatives thereof in the administration of the Assured's Employee Benefit Programs as defined herein and caused by any negligent act, error or omission of the Assured or any other person for whose acts the Assured is legally liable, occurring during the policy period and then only if claim is made or suit is brought during the policy period or within one year after the end of the policy period. EXCLUSIONS: This insurance does not apply: (a) to any dishonest, fraudulent, criminal or malicious act, libel , slander, discrimiration or humiliation; (b) to bodily injury to, or sickness, disease, or death, of any person, or to injury to or destruction of any tangible property, including the loss of use thereof; (c) to any claim for failure of performance of contract by any Insurer, including failure of any Employee Benefit Program; (d) to any claim based upon the Assured's failure to comply with any law concerning Workers' Compensation, Unemployment Insurance, Social Security or Disability Benefits; (e) to any claim based upon: (1) failure of stock to perform as represented by an Assured; (2) advice given by an Assured to an employee to participate or not to participate in stock subscription plans; (3) the investment or non-investment of funds; Page 1 of 2 (f) to claims based upon the Employee Retirement Income Security Act of 1974, Public Law 93-406 commonly referred to as the Pension Reform Act of 1974 and amendments thereto, or similar provisions of any Federal , State or Local Statutory Law of Common Law. DEFINITIONS: (a) "Employee Benefit Programs" - The term "Employee Benefit Programs" shall mean group life insurance, group health insurance, profit sharing plans, pension plans, employee stock subscription plans, workers' compensation, unemployment insurance, social security, disability benefits insurance and travel , savings or vacation plans. (b) "Administration" - The unqualified word "Administration" wherever used, shall mean: (1) giving counsel to employees with respect to the Employee Benefit Programs; (2) interpreting the Employee Benefit Programs; (3) handling of ' records in connection with the Employee Benefit Programs; (4) effecting enrollment, termination or cancellation of employees under the Employee Benefit Programs; provided all such acts are authorized by the Named Assured. Subject otherwise to all terms, clauses and conditions as heretofore. DATED: 2nd October, 1987. INTERNATIONAL SPECIAL RISK SERVICES, INC. BY i Lt j . 22c.zJJ cVs Page 2 of 2 1013/0451W ENDORSEMENT attaching to and forming part of Policy No. ISL 3798 in the name of COLORADO COUNTIES CASUALTY AND PROPERTY POOL Effective date of this endorsement is July 1, 1987 Endorsement No. 13 NON-OWNED AIRCRAFT ENDORSEMENT In consideration of the premium paid, it is understood and agreed that cover granted under Section II of this policy applies to Aircraft used by the Named Assured, always provided the Named Assured: 1. Has no interest in the Aircraft as owner in whole or in part. 2. Exercise no part in the servicing or maintenance of the Aircraft. 3. Exercise no part in the appointment or provision of personnel for the operation of the Aircraft. This endorsement does not apply: (a) To liability arising out of any product manufactured, sold, handled or distributed by the Named Assured. (b) To any Aircraft having a seating capacity, including crew, in excess of the number advised to underwriters prior to coverage being afforded. (c) To liability for loss of or damage to the Aircraft or any consequential loss arising therefrom. (d) When the Aircraft is used by the Named Assured for hire and reward. Subject otherwise to all terms, clauses and conditions as heretofore. DATED: 2nd October, 1987. INTERNATIONAL ON SPECIAL RISK SERVICES, INC. BY �•et2/• 0-4-1-€-"c-AS 1026/0451W ENDORSEMENT attaching to and forming part of Policy No. ISL 3798 in the name of COLORADO COUNTIES CASUALTY AND PROPERTY POOL Effective date of this endorsement is July 1, 1987 Endorsement No. 14 WATERCRAFT LIABILITY Notwithstanding Section II - Exclusion (d) contained herein to the contrary, it is hereby understood and agreed that said exclusion does not apply with respect to the ownership, maintenance or use, including loading and unloading of any watercraft by the Named Assured, but, the insurance with respect to said watercraft does not apply while said watercraft is used to carry persons for a charge or is rented to others. Subject otherwise to all terms, clauses and conditions as heretofore. DATED: 2nd October, 1987. INTERNATIONAL�o - - SPECIAL RISK SERVICES, INC. BY G �41 EC' �/ `"/ 0451W ENDORSEMENT attaching to and forming part of Policy No. ISL 3798 in the name of COLORADO COUNTIES CASUALTY AND PROPERTY POOL Effective date of this endorsement is July 1 , 1987 Endorsement No. 15 In consideration of the premium charged, it is hereby understood and agreed that the following Insuring Agreement J - Faithful Performance is incorporated in SECTION III - CRIME INSURANCE:- AGREEMENT J - FAITHFUL PERFORMANCE: Underwriters agree, subject to the terms and conditions set forth herein, to indemnify the Assured for loss caused to the Assured through failure of any of the Assured's employees as defined, acting alone or in collusion with others, to perform faithfully his duties or to account properly for all monies and property received by virtue of his position of employment. Subject otherwise to all terms, clauses and conditions as heretofore. DATED: 2nd October, 1987. INTERNATIONAL SPECIAL RISK SERVICES, INC. BY /CLAD* V a��<-.} 0451W ENDORSEMENT attaching to and forming part of Policy No. ISL 3798 in the name of COLORADO COUNTIES CASUALTY AND PROPERTY POOL Effective date of this endorsement is July 1, 1987 Endorsement No. 16 In consideration of the premium charged, this policy is extended to include coverage for Depositors Forgery in accordance with the applicable Insuring Agreement(s) (including all terms, clauses, exclusions and conditons relating thereto) of the Comprehensive Crime Form MP 04-50 or equivalent in current use at the inception of this Policy. Subject otherwise to all terms, clauses and conditions as heretofore. DATED: 2nd October, 1987. BYTE�A SPECIAL RI cJ INC. 0451W ENDORSEMENT attaching to and forming part of Policy No. ISL 3798 in the name of COLORADO COUNTIES CASUALTY AND PROPERTY POOL Effective date of this endorsement is July 1, 1987 Endorsement No. 17 In consideration of the premium charged SECTION III - CRIME COVERAGE AGREEMENT I COMMERCIAL BLANKET BOND, is extended to include coverage for Money Orders and Counterfeit Paper Currency Coverage for loss due to the acceptance in good faith, in exchange for merchandise, Money or Services of any post office or express money order, issued or purporting to have been issued by any post office or express company, if such money order is not paid upon presentation, or due to the acceptance in good faith in the regular course of business of counterfeit United States or Canadian paper currency. Subject otherwise to all terms, clauses and conditions as heretofore. DATED: 2nd October, 1987. INTENATIONAL SPECIAL RISK SERVICES INC. BY P-2-t-444 D ac.t-4-^Z, A4_2 0451W ENDORSEMENT attaching to and forming part of Policy No. ISL 3798 in the name of COLORADO COUNTIES CASUALTY AND PROPERTY POOL Effective date of this endorsement is July 1, 1987 Endorsement No. 18 INVERSE CONDEMNATION EXCLUSION CLAUSE This policy does not cover claims for loss or damage or any liability of any and all the Assureds arising out of or in any way connected with the operation of the principles of eminent domain, condemnation by whatever name called regardless of whether such claims are made directly against the Assured or by virtue of any agreement entered into by or on behalf of the Assured. Subject otherwise to all terms, clauses and conditions as heretofore. DATED: 2nd October, 1987. INTERNATIONAL SPECIAL RISK SERVICES, INC. BY e o. ),/ 1020/0451W ENDORSEMENT attaching to and forming part of Policy No. ISL 3798 in the name of COLORADO COUNTIES CASUALTY AND PROPERTY POOL Effective date of this endorsement is July 1, 1987 Endorsement No. 19 SEXUAL MISCONDUCT EXCLUSION Sexual or physical abusa or molestation of any person by the Assured, any employee of the Assured or any volunteer worker does not constitute personal injury within the terms of this policy and as such any claim arising, directly or indirectly, from the aforementioned is excluded. Subject otherwise to all terms, clauses and conditions as heretofore. DATED: 2nd October, 1987. INTERNATIONAL SPECIAL �RISK SERVICES, INC. BY reX�c/0/ , J�_ � e c/ 1031/0451W ENDORSEMENT attaching to and forming part of Policy No. ISL 3798 in the name of COLORADO COUNTIES CASUALTY AND PROPERTY POOL Effective date of this endorsement is July 1, 1987 Endorsement No. 20 SEEPAGE OF POLLUTION OR CONTAMINATION AND DEBRIS REMOVAL AND COST OF CLEAN UP ENDORSEMENT SEEPAGE OR POLLUTION OR CONTAMINATION EXCLUSION Notwithstanding anything to the contrary contained in the Policy to which this Endorsement is attached this Policy does not insure against loss, damage, costs, fines, penalties or expenses directly or indirectly consequent upon:- seepage or pollution or contamination from any cause. DEBRIS REMOVAL AND COST OF CLEAN UP EXTENSION Notwithstanding anything to the contrary contained in the Policy to which this Endorsement is attached, int the event of direct physical loss or damage to the property covered hereunder, this Policy also insures, within the sum insured:- a) expenses incurred in removal from the premises of the Assured of debris of the insured property destroyed or damaged. and/or b) cost of clean up, at the premises of the Assured, made necessary as a result of such loss or damage. It is a condition precedent to recovery under this extension that Underwriters shall have paid or agreed to pay for physical loss or damage and that the Assured shall give notice to the Underwriters of intent to claim for costs of removal of debris or cost of clean up NO LATER THAN 12 MONTHS AFTER THE DATE OF SUCH PHYSICAL LOSS OR DAMAGE. Page 1 of 2 AUTHORITIES EXCLUSION This policy does not cover expenses, fines, penalties or costs incurred or sustained by the Assured or imposed on the Assured at the order of any Government Agency, Court or other Authority, in connection with any kind or description of environmental impairment including seepage or pollution or or contamination from any cause. Subject otherwise to all terms, clauses and conditions as heretofore. DATED: 2nd October, 1987. INTERNATIONAL SPECIAL RISK SERVICES, INC. BY Getz74- ' Page 2 of 2 1030/0451W ENDORSEMENT attaching to and forming part of Policy No. ISL 3798 in the name of COLORADO COUNTIES CASUALTY AND PROPERTY POOL Effective date of this endorsement is July 1 1987 Endorsement No. 21 It is hereby understood and agreed that this Policy shall not apply to liability arising out of hospital/Clinic Malpractice. Subject otherwise to all terms, clauses and conditions as heretofore. DATED: 2nd October, 1987. INTERNATIONAL p SPECIAL RISK SERVICES, INC. BY U t L/ -i--rafi c 0451W ENDORSEMENT attaching to and forming part of Policy No. ISL 3798 in the name of COLORADO COUNTIES CASUALTY AND PROPERTY POOL Effective date of this endorsement is July 1, 1987 Endorsement No. 22 ABSOLUTE ASBESTOS EXCLUSION Notwithstanding anything to the contrary contained in this Policy, it is hereby understood and agreed that this Policy shall not apply to: Bodily Injury or Personal Injury or loss of, damage to or loss of use of property directly or indirectly caused by asbestos. All other terms and conditions remain unchanged. DATED: 2nd October, 1987. INTERNATIONAL SPECIAL RISK SERVICES, INC. BY ( I/ ' T-ez..c.e4c/ 1005/0451W ENDORSEMENT attaching to and forming part of Policy No. ISL 3798 in the name of COLORADO COUNTIES CASUALTY AND PROPERTY POOL Effective date of this endorsement is July 1 1987 Endorsement No. 23 NO FAULT - COLORADO In consideration of the premium charged, it is hereby understood and agreed that this licy accordancePo with �standardcd Endorsement PCA22031 (01-85) (or ury tast ion coverage to afford may be amended in accordance with the Colorado Automobile Reparations Reform Act) in current use on the aforementioned date. In consequence of the foregoing, the amount of Ultimate Net Loss under Part I (Aggregate Agreement) and Part II (Specific Excess Agreement) applicable to fors Insurance have Assured'sfollowing maximum to Fundandlimit which to the Specific Excess Agreement: $50,000 any one person any one accident. Subject otherwise to all terms, clauses and conditions as heretofore. DATED: 2nd October, 1987. INTERNATIONAL SPECIAL RISK SERVICES, INC. BY Pr-Jet 0451W ENDORSEMENT attaching to and forming part of Policy No. ISL 3798 in the name of COLORADO COUNTIES CASUALTY AND PROPERTY POOL Effective date of this endorsement is July 1, 1987 Endorsement No. 24 It is hereby understood and agreed that coverage will apply to claims and actions for which immunity is not available under or is waived by the Colorado Governmental Immunity Act, as amended from d e time to ohtime, ais nd,nd toordefense and and a supplementary payments only, as defined for which le r d by the o Governmental mm immunity Act, as amended from Subject otherwise to all terms, clauses and conditions as heretofore. DATED: 2nd October, 1987. INTERNATIONAL SPECIAL RISK SERVICES, INC. BY 0451W ENDORSEMENT attaching to and forming part of Policy No. ISL 3798 in the name of COLORADO COUNTIES CASUALTY AND PROPERTY POOL Effective date of this endorsement is July 1, 1987 Endorsement No. 25 VOLUNTEER WORKERS EXTENSION In consideration of the premium charged, it is hereby understood and agreed that this Policy is extended to afford coverage for Volunteer Workers but only with respect to operations by or on behalf of the Named Assured. Subject otherwise to all terms, clauses and conditions as heretofore. DATED: 2nd October, 1987. INTERNATIONAL SPECIAL RISK SERVICES, INC. BY r2-€4 ) 2)-a.t-L 4eJ 1042/0451W ENDORSEMENT attaching to and forming part of Policy No. ISL 3798 in the name of COLORADO COUNTIES CASUALTY AND PROPERTY POOL Effective date of this endorsement is July 1, 1987 Endorsement No. 26 JOINT LOSS ENDORSEMENT In the event of damage to or destruction of property, at a location designated in this policy and also designated in a boiler and machinery insurance policy and there is a disagreement between the insurers with respect to: (1) whether such damage or destruction was caused by a Peril insured against by this policy or by an Accident insured against by such boiler and machinery insurance policy. or (2) the extent of participation of this policy and of such boiler and machinery insurance policy in a loss which is insured against, partially or wholly, by any or all of said policies, The Underwriters shall upon written request of the Insured, pay to the Insured one-half of the amount of the loss which is in disagreement, but in no event more than the Underwriters would have paid if there had been no boiler and machinery insurance policy in effect, subject to the following conditions: (1) The amount of the loss which is in disagreement after making provisions for any undisputed claims payable under the said policies and after the amount of the loss is agreed upon by the insured and the insurers, is limited to the minimum amount remaining payable under either the boiler and machinery or fire policy(ies) ; (2) The boiler and machinery insured shall simultaneously pay to the Insured one -half of said amount which is in disagreement; Page 1 of 2 (3) The payments by the insurers hereunder and acceptance of the same by the insured signify the agreement of the insurers to submit to and proceed with arbitration within 90 days of such payments; The arbitrators shall be three in number, one of whom shall be appointed by the boiler & machinery insurer and one of whom shall be appointed by the fire insurer(s) and the third appointed by consent of the other two, and the decision by the arbitrators shall be binding on the insurers and that judgement upon such award may be entered in any court of competent jurisdiction; (4) The insured agrees to cooperate in connection with such arbitration but not to intervene therein; (5) The provisions this endorsement shall not apply unless policy issued by the boiler andmachneryinsrance othercompany is similarly endorsed; or (6) Acceptance by the Insured of sums paid pursuant to the provisions of this endorsement, including an arbitration award, shall not operate to alter, waive, surrender or in any way affect the rights of the Insured against any of the insurers. Subject otherwise to all terms, clauses and conditions as heretofore. DATED: 2nd October, 1987. INTERNATIONAL SPECIAL RISK SERVICES, INC. BY Page 2 of 2 1021/0451W ENDORSEMENT attaching to znd forming part of Policy No. ISL 3798 in the name of COLORADO COUNTIES CASUALTY AND PROPERTY POOL Effective date of this endorsement is July 1, 1987 Endorsement No. 27 WORKERS COMPENSATION ACT/EMPLOYERS LIABILITY/ OCCUPATIONAL DISEASE EXCLUSION Notwithstanding anything contained herein to the contrary, it is understood and agreed that this policy does not afford Workers' Compensation and/or Employers' Liability and/or Occupational Disease coverage. In consequence of the foregoing all reference to the aforementioned coverage shall be deemed to be deleted. Subject otherwise to all terms, clauses and conditions as heretofore. DATED: 2nd October, 1987. INTERNATIONAL SPECIAL RISK SERVICES, INC. BY P / . � d c 1041/0451W ENDORSEMENT attaching to and forming part of Policy No. ISL 3798 in the name of COLORADO COUNTIES CASUALTY AND PROPERTY POOL Effective date of this endorsement is July 1, 1987 Endorsement No. 28 It is hereby understood and agreed that the Assured has agreed to reject any and all uninsured motorists coverage (including underinsured motorists coverage) . Subject otherwise to all terms, clauses and conditions as heretofore. DATED: 2nd October, 1987. INTERNATIONAL NA SPECIAL RISK SERVICES, INC. BY r ��Ii , v_e c-c-tc 0451W ENDORSEMENT attaching to and forming part of Policy No. ISL 3798 in the name of COLORADO COUNTIES CASUALTY AND PROPERTY POOL Effective date of this endorsement is July 1, 1987 Endorsement No. 29 Notwithstanding anything contained herein to the contrary, it is understood and agreed that the Retroactive Date applicable to General Liability, Host and/or Liquor Liability, Automobile Liability, Errors and Omissions and Employee Fidelity shall be as follows in respect of the participating member counties as listed below: - (a) January 15, 1986 - Weld County (b) February 16, 1987 - Cheyenne County (c) April 1, 1987 - Lake County (d) July 1, 1987 - Grand County Montrose County Fremont County Subject otherwise to all terms, clauses and conditions as heretofore. DATED: 2nd October, 1987. INTERNATIONAL SPECIAL RISK SERVICES, INC. BY e..t /. 0451W ENDORSEMENT attaching to and forming part of Policy No. ISL 3798 in the name of COLORADO COUNTIES CASUALTY AND PROPERTY POOL Effective date of this endorsement is July 1, 1987 Endorsement No. 30 It is hereby agreed that this Policy shall not apply to Airport Liability except Owners, Landlords and Tenants Liability relating thereto. Subject otherwise to all terms, clauses and conditions as heretofore. DATED: 2nd October, 1987. INTERNATIONAL SEPCIAL RISK SERVICES, INC. BY t e W I , acc-ic.` 0451W ENDORSEMENT attaching to and forming part of Policy No. ISL 3798 in the name of COLORADO COUNTIES CASUALTY AND PROPERTY POOL Effective date of this endorsement is July 1, 1987 Endorsement No. 31 COLORADO - SPECIAL AMENDATORY ENDORSEMENT (Per H.B. 1204) It is hereby agreed that the Underwriter, through Gallagher Bassett Services, Inc. , upon the request of the Assured and within thirty (30) days thereafter, shall supply sufficient information to the Assured about closed or paid claims, claims for which thy,,Underwriters have established reserves and claims for which the Underwr,itershave received notices of incidents which could give rise to claims to allow,'th2Assured to determine how much of the aggregate coverage, IF APPLICABLE, remains available under the Policy. ;,- Subject otherwise to all terms clauses and conditions as heretofore. DATED: 2nd October, 1987. INTERNATIONAL SPECIAL RISK SERVICES, INC. � � 7)BY � , u.c. x 0451W ENDORSEMENT attaching to and forming part of Policy No. ISL 3798 in the name of COT ORATO COUNTIES CASUALTY AND PROPERTY POOL Effective date of this endorsement is JULY 1. 1987 Endorsement No. 32 IT IS HEREBY NOTED AND AGREED EFFECTIVE 1st JULY, 1987, THAT THE UNQUALIFIED WORD "ASSURED" WHENEVER USED IN THE POLICY WORDING SHALL ALSO INCLUDE DISTRICT ATTORNEYS, THEIR ASSISTANTS, AGENTS, AND EMPLOYEES BUT ONLY WHILE ACTING WITHIN THE SCOPE OF THEIR DUTIES TO THE EXTENT THAT ANY CLAIM IS ASSERTED AGAINST THEM IN CONNECTION WITH FACTS ARISING IN A PARTICIPATING COUNTY OR WITH RESPECT TO OPERATIONS DIRECTLY RELATED TO OR SPECIFICALLY UNDERTAKEN ON BEHALF OF A PARTICIPATING COUNTY. Subject otherwise to all terms, clauses and conditions as heretofore. DATED: OCTOBER 27, 1987 INTERNATIONAL SPECIAL RISK SERVICES, INC. Lk By a r a/cE .t23 ii IV ENDORSEMENT attaching to and forming part of Policy No. ISL3798 in the name of COLORADO COUNTIES CASUALTY AND PROPERTY POOL Effective date of this endorsement is JULY 1, 1987 Endorsement No. 33 IT IS HEREBY AGREED THAT UNQUALIFIED WORD "ASSURED" WHENEVER USED IN THE EXCESS INSURANCE POLICIES SHALL ALSO INCLUDE THOSE PERSONS REQUIRED BY COURT ORDER TO PERFORM COMMUNITY OR USEFUL PUBLIC SERVICE BUT ONLY WHILE ACTING WITHIN THE SCOPE OF THEIR ASSIGNED DUTIES WITH RESPECT TO OPERATIONS DIRECTLY RELATED TO OR SPECIFICALLY UNDERTAKEN ON BEHALF OF A PARTICIPATING COUNTY. Subject otherwise to all terms, clauses and conditions as heretofore. DATED: OCTOBER 27, 1987 INTERNATIONAL SPECIAL RISK SERVICES, INC. By et-leX i I(LA- tut].Y, ENDORSEMENT attaching to and forming part of Policy No. ISL 3798 in the name of COLORADO COUNTIES CASUALTY & PROPERTY POOL Effective date of this endorsement is JULY 1, 1987 Endorsement No. 34 IT IS HEREBY UNDERSTOOD AND AGREED THAT WITH RESPECT TO THE SUBJECT OF THE POLICY'S ENDORSEMENT 22 CONCERNING NO-FAULT COLORADO, SAID ENDORSEMENT SHALL BE AMENDED TO INCLUDE THE FOLLOWING: IT IS HEREBY UNDERSTOOD AND AGREED THAT THERE SHALL BE NO PERSONAL INJURY PROTECTION COVERAGE PROVIDED HEREUNDER TO ANY CLAIMANT WHOSE BENEFITS UNDER WORKERS'COMPENSATION WERE REDUCED BECAUSE OF SUCH CLAIMANT'S ACTS AS PROVIDED BY SECTION 8-52-104, COLORADO REVISED STATUTES. Subject otherwise to all terms, clauses and conditions as heretofore. DATED: NOVEMBER 3, 1987 INTERNATIONAL SPECIAL RISK SERVICES, INC. / F I By ':21 a .e ENDORSEMENT attaching to and forming part of Policy No. ISL3798 in the name of COT ORADO COUNTIES CASUAT TV & PROPERTY POOL Effective date of this endorsement is JULY 1, 1987 Endorsement No. 35 IT IS HEREBY UNDERSTOOD AND AGREED THAT COVERAGE FOR OTHER THAN AUTOMOBILE MEDICAL PAYMENTS UNDER SECTION II, AGREEMENT C OF THIS POLICY EXCLUDES PAYMENTS TO OR FOR ANY PERSON WHO IS SENTENCED TO AND IMPRISONED IN, COMMITTED TO, CONFINED IN, OR DETAINED FOR SAFE KEEPING IN ANY COUNTY JAIL OR OTHER DETENTION FACILITY • Subject otherwise to all terms, clauses and conditions as heretofore. DATED: NOVEMBER 3, 1987 INTERNATIONAL SPECIAL RISK SERVICES, INC. Hello