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Home My WebLink About000132.tiff ColoradoCounties Casualty and PropertyPool MEMORANDUM Date: November 15, 1994 From: Louella Casias To: Designated Correspondents Subject: CAPP Excess Policies 1994/95 Enclosed are your CAPP excess policies for the policy period July 1, 1994 through June 30, 1995. These policies should be placed in the CAPP Insuring Agreements binder (dark blue binder/white letters). Please contact me if you have any questions regarding this matter. \ Administered By ///[,0p/ \County Technical services.Inc 132 1177 Grant Street, Suite 200 r Denver, Colorado 80203 r Phone 303.861,0507 ' Fax 303.861.2832 POLICY NUMBER: 426-61-62 Renewal of: 426-61-25 NATIONAL UNION FIRE INSURANCE COMPANY OF PITTSBURGH, PA 70 PINE STREET, NEW YORK, NEW YORK 10270 EXCESS LIABILITY POLICY DECLARATIONS Item 1. NAMED INSURED AND MAILING ADDRESS: COLORADO COUNTIES CASUALTY AND PROPERTY POOL AND PARTICIPATING MEMBER COUNTIES 1177 GRANT STREET DENVER, CO 80203 Item 2. POLICY PERIOD: July 1, 1994 To July 1, 1995 Item 3. PREMIUM: $505,000 Minimum and Deposit Item 4. SELF-INSURED RETENTION: $250,000 ULTIMATE NET LOSS each and every ACCIDENT Item 5. LIMIT OF LIABILITY: $750,000 ultimate net loss each accident excess of the Self- Insured Retention as stated in Item 4 of the Declarations; Item 6. RETROACTIVE DATE: July 1, 1986 unless endorsed otherwise. Item 7. FORMS ATTACHED AT INCEPTION: Manuscript Form, Endorsements Countersigned by: 11.,n4 Ct- �a�o `�//Authorized Representative -1- INSURED'S COPY POLICY NUMBER: 426-61-62 NATIONAL UNION FIRE INSURANCE COMPANY OF PITTSBURGH, PA (herein the "Company") EXCESS LIABILITY POLICY THIS IS A CLAIMS MADE POLICY THIS POLICY IS NOT SUBJECT TO THE TERMS AND CONDITIONS OF ANY OTHER POLICIES IT SHOULD BE READ CAREFULLY In consideration of the payment of premium and in reliance upon the statements in the DECLARATIONS made a part hereof and subject to the LIMIT OF LIABILITY, EXCLUSIONS, CONDITIONS, and other terms of this POLICY, the COMPANY agrees with the NAMED INSURED, named in the DECLARATIONS, to provide coverage as follows: INSURING AGREEMENTS COVERAGE The COMPANY agrees to indemnify the NAMED INSURED for ULTIMATE NET LOSS for liability imposed by law or otherwise as agreed herein, or as assumed by the NAMED INSURED under contract or agreement to a PARTICIPATING MEMBER COUNTY, in respect of an CLAIM made during the POLICY PERIOD for: 1. PERSONAL INJURY, including death at any time resulting therefrom; or 2. PROPERTY DAMAGE, resulting from an ACCIDENT on or after the RETROACTIVE DATE in the DECLARATIONS. II. LIMIT OF LIABILITY The COMPANY shall only be liable for ULTIMATE NET LOSS in excess of the SELF-INSURED RETENTION stated in the DECLARATIONS and in no event for ULTIMATE NET LOSS in excess of the LIMIT OF LIABILITY stated in the DECLARATIONS. -2- INSURED'S COPY Regardless of the number of CLAIMS made against the NAMED INSURED or a PARTICIPATING MEMBER COUNTY or number of PARTICIPATING MEMBER COUNTIES against which CLAIMS are made, the COMPANY'S LIMIT OF LIABILITY in respect of each ACCIDENT shall not exceed the LIMIT OF LIABILITY stated in the DECLARATIONS. DEFINITIONS 1. "ACCIDENT" - means an event or occurrence, including continuous or repeated exposure to the same general conditions, which commences on or after the RETROACTIVE DATE in the DECLARATIONS and which results in PERSONAL INJURY and/or PROPERTY DAMAGE as those terms are defined herein. In the event the same general conditions give rise to more than one CLAIM, the date upon which the same general conditions commenced shall be considered the date of loss, in which case the PERSONAL INJURY and/or PROPERTY DAMAGE, regardless of whether suffered by more than one individual person or individual entity, shall be treated as resulting from one ACCIDENT. 2. "CLAIM" - means any formal or written demand for monetary relief against the NAMED INSURED or a PARTICIPATING MEMBER COUNTY, or circumstances from which the NAMED INSURED or a PARTICIPATING MEMBER COUNTY reasonably believes a formal or written demand for monetary relief will be forthcoming, but only if the NAMED INSURED or a PARTICIPATING MEMBER COUNTY becomes aware of such during the POLICY PERIOD and written notice is provided to the COMPANY during the POLICY PERIOD or no later than sixty (60) days following non-renewal or cancellation. 3. "CONTAMINATION" - means any unclean or unsafe or damaging or injurious or unhealthful condition arising out of the presence of POLLUTANTS, whether permanent or transient in any ENVIRONMENT. 4. "ENVIRONMENT" - means any person, any manmade object or feature, animals, crops and vegetation, land, bodies of water, underground water or water table supplies, air and any other feature of the earth or its atmosphere, whether or not altered, developed or cultivated, including, but not limited to any of the above, owned, controlled, or occupied by a PARTICIPATING MEMBER COUNTY. -3- INSURED'S COPY 5. "NAMED INSURED" - means the entity stated in Item 1. of the DECLARATIONS and its elected and appointed officials, trustees, directors, officers, employees, agents and volunteers, but only to the extent such individuals are acting within the scope of their official duties with the NAMED INSURED. 6. "PARTICIPATING MEMBER COUNTY" - means: (a) a legal public entity participating in the Colorado Counties Casualty and Property Pool, but limited only to counties listed in Endorsement 1. to this POLICY, and coverage for additional counties must be requested in writing to the COMPANY and specifically endorsed hereon; (b) its elected and appointed officials, trustees, directors, officers, district attorneys and their assistants, employees; agents and volunteers, but only to the extent such individuals are acting within the scope of their official duties with a PARTICIPATING MEMBER COUNTY; and, (c) any person while using an automobile owned or hired by a PARTICIPATING MEMBER COUNTY and any person or organization legally responsible for the use thereof, provided the actual use of the automobile is for or on behalf of a PARTICIPATING MEMBER COUNTY and within the scope and permission thereof, and to include any official, trustee or employee of a PARTICIPATING MEMBER COUNTY with respect to the use of non-owned automobiles in the business of a PARTICIPATING MEMBER COUNTY. This POLICY with respect to any person or organization other than a PARTICIPATING MEMBER COUNTY does not apply: 1. 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; 2. to any employee of a PARTICIPATING MEMBER COUNTY with respect to injury to or sickness, disease or death of another employee of the same PARTICIPATING MEMBER COUNTY injured in the course of such employment in an accident arising out of the maintenance or use of an automobile in the business of such employer; -4- INSURED'S COPY 3. with respect to any hired automobile, to the owner or a lessee thereof, other than a PARTICIPATING MEMBER COUNTY, nor to any agent or employee of such owner or lessee; or, 7. "PERSONAL INJURY" - means: (a) bodily injury, mental injury, mental anguish, shock, sickness, disease, disability, false arrest, false imprisonment, wrongful eviction, detention, malicious prosecution, discrimination, humiliation, invasion of the right of privacy, libel, slander, defamation of character, 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; or (b) bodily injury arising out of the rendering of or failure to render medical services or attention to any person or persons ( other than employees of a PARTICIPATING MEMBER COUNTY injured during the course of their employment) by any duly qualified and licensed emergency medical technicians, paramedics, nurses, and medical doctors (but with respect to medical doctors limited to their duties as a coroner), but only while employed by or acting on behalf of a PARTICIPATING MEMBER COUNTY. 8. "POLLUTANTS" - means smoke, vapors, soot, fumes, acids, sounds, alkalis, chemicals, liquids, solids, gases, thermal pollutants, and all other irritants or contaminants. _9. "PROPERTY DAMAGE" - means: (a) physical injury to or destruction of tangible property, including the loss of use resulting therefrom; or (b) loss of use of tangible property which has not been physically injured or destroyed, but excluding damage to property owned by the NAMED INSURED or by a PARTICIPATING MEMBER COUNTY, except for damage to the property of others in the care, custody or control of the NAMED INSURED or a PARTICIPATING MEMBER COUNTY, but only to the extent no other insurance is available to the NAMED INSURED or a PARTICIPATING MEMBER COUNTY. 10. "HEALTH PROFESSIONAL SERVICES" - means the rendering or failure to render by the NAMED INSURED of a PARTICIPATING MEMBER COUNTY or any person or organization acting on their behalf, the following: -5- INSURED'S COPY a) medical, surgical, dental or nursing treatment, including the furnishing of food or beverages in connection therewith; (b) furnishing or dispensing of drugs or medical, dental or surgical supplies or appliances; (c) service by any person or committee or entity as part of a formal accreditation or similar professional board or committee or as a person or committee or entity charged with the duty of executing directives of any such board or committee; 11. "ULTIMATE NET LOSS" - means the total sums which the NAMED INSURED or a PARTICIPATING MEMBER COUNTY becomes obligated to pay by reason of PERSONAL INJURY and/or PROPERTY DAMAGE, either through adjudication or compromise, after making property deductions for all recoveries and salvages from other parties, and shall also include hospital, medical, and funeral charges, and all sums paid as salaries, wages, compensation, fees, charges and all legal costs, premiums on attachment or appeal bonds, interest, expenses for doctors, lawyers, nurses and investigators, and for litigation, settlement, adjustment and investigation of claims and suits covered hereunder, excluding only the salaries of the NAMED INSURED's or a PARTICIPATING MEMBER COUNTY's employees. The fees, charges and expenses for AON Insurance Management Services, Inc. are specifically excluded and are to be paid by the NAMED INSURED in addition to is SELF-RETENTION. EXCLUSIONS -THIS POLICY DOES NOT APPLY: 1. to any CLAIM or potential CLAIM or ACCIDENT or circumstances for which the NAMED INSURED or a PARTICIPATING MEMBER COUNTY has provided notice to any other insurance company before the POLICY PERIOD in the DECLARATIONS. 2. to any CLAIM resulting from an ACCIDENT which occurred or commenced prior to the RETROACTIVE DATE in the DECLARATIONS. 3. to liability of the NAMED INSURED or a PARTICIPATING MEMBER COUNTY for assault and battery committed by or at the direction of the NAMED INSURED or a PARTICIPATING MEMBER COUNTY except (i) liability for PERSONAL INJURY resulting from any act alleged to be assault and battery but committed for the purpose of preventing injury to persons or damage to property or (ii) liability arising out of corporal punishment. -6- Revised INSURED'S COPY 4. except with respect to operations performed by independent contractors, to liability arising out of the ownership, maintenance or use, including loading or unloading, of aircraft or watercraft over 25 feet in length. 5. to loss or damage 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 of 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. 6. to any liability or expenses arising out of sexual or physical abuse or molestation or allegations of sexual or physical abuse or molestation of any person involving physical contact or alleged physical contact by an employee, agent or official of the NAMED INSURED or a PARTICIPATING MEMBER COUNTY. 7. to liability arising out of the rendering of failure to render HEALTH PROFESSIONAL SERVICES: a) which results from any surgical procedures. b) at any hospital 3. to any obligation or liability for which the NAMED INSURED or a PARTICIPATING MEMBER COUNTY or any of their insurers may be held liable under any workers or unemployment compensation, occupational disease, disability benefits or similar law, provided however that this exclusion does not apply to the liability of others assumed by the NAMED INSURED or a PARTICIPATING MEMBER COUNTY under contract. 9. to any liability of the NAMED INSURED or a PARTICIPATING MEMBER COUNTY arising out of the operation of an airport or similar facility, whether owned or non-owned, except with respect to the maintenance of any buildings, premises or grounds incidental thereto. 10. to liability arising out of or in any way related to: (a) the CONTAMINATION of any ENVIRONMENT by POLLUTANTS that are introduced at any time, anywhere, in any way; -7- INSURED'S COPY (b) any PERSONAL INJURY, PROPERTY DAMAGE, costs or other loss or damage arising out of such CONTAMINATION, including, but not limited to, cleaning, remedying or detoxifying such CONTAMINATION; or (c) payment of sums related to the 1) investigation or defense of any loss, injury or damage or 2) payment of any cost, fine or penalty or 3) payment of any expense involving a claim or suit related to any of the above. 11. to PERSONAL INJURY or PROPERTY DAMAGE arising out of or in any way related to: (a) inhaling, ingesting or prolonged physical exposure to asbestos or goods or products containing asbestos; (b) the use of asbestos in constructing or manufacturing any good, product or structure; (c) the removal of asbestos from any good, product or structure; (d) the manufacture, transportation, storage or disposal of asbestos or goods or products containing asbestos; or (e) the payment of sums related to the 1) investigation or defense of any loss, injury or damage or 2) payment of any cost, fine or penalty or 3) payment of any expense involving a claim or suit related to any of the above. '2. to liability arising out of or in any way related to: (a) the auditing of accounts or records of others; (b) the operation of an investment or real estate department or committee; or (c) any capacity as a fiduciary or trustee for mutual funds, pension or welfare funds, or similar activities. 13. to liability arising out of any injury to volunteer firemen. -8- INSURED'S COPY CONDITIONS 1. CROSS LIABILITY: In the event of claims being made by reason of PERSONAL INJURY and/or PROPERTY DAMAGE suffered by an employee of the NAMED INSURED or a PARTICIPATING MEMBER COUNTY herein for which another PARTICIPATING MEMBER COUNTY is or may be liable, then this POLICY shall cover the NAMED INSURED and each PARTICIPATING MEMBER COUNTY in the same manner as if separate policies had been issued to each PARTICIPATING MEMBER COUNTY. Nothing contained herein shall operate to increase the COMPANY'S LIMIT OF LIABILITY stated in the DECLARATIONS and the COMPANY'S LIMIT OF LIABILITY shall in no event exceed this amount in respect of each ACCIDENT. 2. NOTICE OF CLAIM: Notice must be given to the COMPANY c/o AON Insurance Management Services, Inc., 1177 Grant Street, Denver, CO 80203, as soon as practicable whenever the NAMED INSURED or a PARTICIPATING MEMBER COUNTY has reason to believe that a CLAIM will be forthcoming. 3. NOTICE OF POTENTIAL CLAIMS: If AON Insurance management Services, Inc. receives notification during the POLICY PERIOD in the DECLARATIONS or within 60 (sixty) days thereafter, of an ACCIDENT which occurs or commences during the POLICY PERIOD in the DECLARATIONS, the COMPANY will treat any CLAIM made against the NAMED INSURED or a PARTICIPATING MEMBER COUNTY as made on the date on which the notification was received by the COMPANY do AON Insurance Management Services, Inc. or the expiration date of the POLICY PERIOD, whichever is earlier. 4. INSPECTIONS AND AUDIT: The COMPANY or their duly authorized representatives shall be permitted at all reasonable times during the POLICY PERIOD and within thirty-six (36) months thereafter, to inspect the premises used by the NAMED INSURED or a PARTICIPATING MEMBER COUNTY and to examine their books or records so far as they relate to coverage afforded by this POLICY and any CLAIMS made hereunder. 5. CANCELLATION: This POLICY may be cancelled as of any anniversary date by either the COMPANY or the NAMED INSURED 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 NAMED INSURED, the COMPANY may give ten (10) days notice of cancellation in writing to the NAMED INSURED and all coverage will terminate ten (10) days after the mailing of such notice. -9- INSURED'S COPY (REVISED 10/20/94) If the period of limitation relating to the giving of notice is prohibited or made void by any law controlling the construction of this policy, such period shall be deemed to be amended so as to be equal to the minimum period of limitation permitted by such law and all other provisions of the CONDITION 5. shall remain valid and in effect. No cancellation or termination of the POLICY whether by or at the request of the NAMED INSURED or by the COMPANY, 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 or Insurance, State of Colorado, Division of Insurance, Department of Regulatory Agencies, 1560 Broadway, Suite 850, Denver, CO 80202, unless an earlier date of such cancellation or termination is approved by said Commissioner of Insurance, State of Colorado. 6. EXTENDED REPORTING PERIOD: In the event of cancellation by the COMPANY under CONDITION 5., the NAMED INSURED, upon payment of an ADDITIONAL PREMIUM of not more than 100% of the total expiring premium shall have the right to extend the period whereby a CLAIM is treated by the COMPANY as made on the expiration date of this POLICY for a period of twenty-four (24) months, but any such CLAIM must arise from an ACCIDENT occurring and commencing prior to the date on which the extended reporting period commenced, during the POLICY PERIOD in the DECLARATIONS and after the RETROACTIVE DATE. 7. OTHER INSURANCE: If the NAMED INSURED or a PARTICIPATING MEMBER COUNTY has other insurance against loss covered by this POLICY, the COMPANY shall be liable under the terms of this POLICY only as excess of the coverage provided by such other insurance. 8. CLAIMS HANDLING AND DEFENSE OF LITIGATION: The COMPANY shall have the right and opportunity but not the obligation to be associated with the NAMED INSURED or a PARTICIPATING MEMBER COUNTY in the defense of any claims, suits or proceedings relative to an ACCIDENT covered under this POLICY and the NAMED INSURED or PARTICIPATING MEMBER COUNTY and the company shall cooperated to the fullest possible. 9. LOSS PAYMENTS: When it has been determined that the COMPANY is liable under this POLICY, the COMPANY shall thereafter promptly reimburse the NAMED INSURED for its payments made in excess of the SELF-INSURED RETENTION in the DECLARATIONS. -10- 10. APPEAL: In the event the NAMED INSURED and the COMPANY are unable to agree to the advisability of appealing any judgment covered under this POLICY, a disinterested and mutually agreed upon attorney shall be retained and directed to render a written recommendation concerning such appeal. Such written recommendation shall be binding on both the NAMED INSURED and the COMPANY. The fees and expenses of this attorney shall be borne equally by both parties. 11. SUBROGATION: The COMPANY shall be surrogated to all rights which the NAMED INSURED and/or a PARTICIPATING MEMBER COUNTY may have against any person or other entity in respect to any claim or payment made under this POLICY, and the NAMED INSURED and/or a PARTICIPATING MEMBER COUNTY shall execute all papers required by the COMPANY and shall cooperate to secure the COMPANY'S rights. In the event of any reimbursement obtained or recovery by the NAMED INSURED and/or PARTICIPATING MEMBER COUNTY or the COMPANY on account of any loss covered by this POLICY, 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 covered loss which exceeds the LIMIT OF LIABILITY shall be reimbursed to the NAMED INSURED and/or a PARTICIPATING MEMBER COUNTY. (b) to reduce the COMPANY'S loss until the COMPANY is fully reimbursed for any payments under this POLICY. (c) to reduce the NAMED INSURED'S and/or PARTICIPATING MEMBER COUNTY'S loss within THE SELF-INSURED RETENTION. Notwithstanding the foregoing, the parties can otherwise agree to a different allocation of expenses in connection with seeking reimbursement or recovery and the distribution of any reimbursement or recovery, such agreement to be in writing. 12. WAIVER OF SUBROGATION: This POLICY shall not be invalidated if the NAMED INSURED or a PARTICIPATING MEMBER COUNTY be 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. 13. CONFLICTING STATUTES: In the event that any provision of this POLICY is unenforceable under the laws or statutes of any state of competent jurisdiction, this POLICY shall be conformed to comply with any such laws or statutes. -11- INSURED'S COPY 14. ASSIGNMENT: Assignment of interest under this POLICY shall not bind the COMPANY unless its consent is obtained in writing. 15. CHANGES: By acceptance of this POLICY the NAMED INSURED agrees that it embodies all agreements existing between the NAMED INSURED and the COMPANY or any of its agents relating to this POLICY. None of the provision, conditions or other terms of this POLICY 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 POLICY. 16. TERRITORY: This POLICY applies to suits brought in the United States of America and its territories. 17. SERVICE ORGANIZATION: This POLICY is issued to the NAMED INSURED on the express condition that the NAMED INSURED undertakes to utilize at all times the service of AON Insurance Management 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 AON Insurance Management Services, Inc., and perform the notice and reporting requirements to the COMPANY under the terms of this POLICY. (b) maintain accurate records of all reported claims and details incident to loss and expense payments. (c) furnish monthly claims records on an approved form. The utilization of these services shall be condition precedent to any liability which may attach to the COMPANY in accordance with the terms and CONDITIONS of this POLICY. 18. BANKRUPTCY AND INSOLVENCY: In the event of the bankruptcy or insolvency of the NAMED INSURED, the COMPANY shall not be relieved of the payment of any claims otherwise covered hereunder because of such bankruptcy or insolvency, including but not limited to any obligations of the NAMED INSURED to a PARTICIPATING MEMBER COUNTY. -12- INSURED'S COPY 19. MAINTENANCE OF SELF-INSURED RETENTION: The amount stated in Item 4. of the DECLARATIONS as the SELF-INSURED RETENTION applicable to each and every CLAIM shall be maintained intact and be the responsibility of the NAMED INSURED except for any reduction thereof solely by payment for PERSONAL INJURY or PROPERTY DAMAGE as defined and otherwise covered by this POLICY. The failure of the NAMED INSURED to comply with this CONDITION 19. will not render the COMPANY liable for a greater amount than it would have been liable had the NAMED INSURED complied herewith. The failure of the NAMED INSURED to maintain the SELF-INSURED RETENTION, including but not limited to the insolvency, bankruptcy, liquidation or failure of an underlying insurer to pay on behalf of the NAMED INSURED or a PARTICIPATING MEMBER COUNTY, will not impose any liability, contractually or otherwise, upon the COMPANY to assume the defense or incur any expenses on behalf of the named insured or any PARTICIPATING MEMBER COUNTY under this POLICY. In witness hereof, we have caused this Policy to be executed and attested, but this Policy shall not be valid unless countersigned by one of our duly authorized representatives. • � k • SECRETARY PRESIDENT National Union Fire Insurance National Union Fire Insurance Company of Pittsburgh, PA. Company of Pittsburgh, PA. -13- INSURED'S COPY PARTICIPATING MEMBER COUNTIES ENDORSEMENT (Endorsement 1.) In consideration of the premium paid, it is understood and agreed that this endorsement attaches to and forms part of Policy No. 426-61-62 in the name of Colorado Counties Casualty and Property Pool and Participating Member Counties. The effective date of this endorsement is July 1, 1994. It is also understood and agreed that the PARTICIPATING MEMBER COUNTIES hereunder are as follows: ALAMOSA GRAND PARK ARCHULETA GUNNISON PHILLIPS BACA HINSDALE PITKIN BENT HUERFANO PROWERS CHAFFEE JACKSON PUEBLO CHEYENNE KIOWA RIO BLANCO CLEAR CREEK KIT CARSON RIO GRANDE CONEJOS LAKE ROUTT COSTILLA LA PLATA SAGUACHE CROWLEY LAS ANIMAS SAN JUAN DELTA LINCOLN SEDGWICK DOLORES LOGAN SUMMIT DOUGLAS MINERAL TELLER EAGLE MONTROSE WASHINGTON ELBERT MORGAN WELD FREMONT OTERO YUMA GARFIELD OURAY GILPIN All other terms and conditions of this policy remain unchanged. DATED: 8f. ELQAdaI 4t°t S NATIONAL UNION FIRE INSURANCE COMPANY OF PITTSBURGH, PA. By: &Lea Ct. Mac% Its: DATED 7 p 7, &'/`! COLORADO COUNTIES CASUALTY AND / /�� PROPERTY POOL AND PARTICIPATING MEMBE COUNTIES By: Its: -14- INSURED'S COPY ERRORS AND OMISSIONS ENDORSEMENT (Endorsement 2.) In consideration of the premium paid, it is understood and agreed that this endorsement attaches to and forms part of Policy No. 426-61-62 in the name of COLORADO COUNTIES CASUALTY AND PROPERTY POOL AND PARTICIPATING MEMBER COUNTIES. The effective date of this endorsement is July 1, 1994. The COMPANY agrees, subject to the terms and conditions herein, to indemnify the NAMED INSURED for liability imposed upon the NAMED INSURED or for the liability of the NAMED INSURED to a PARTICIPATING MEMBER COUNTY by law or otherwise agreed upon resulting from any CLAIM made during the POLICY PERIOD by reason of an act, error or omission, committed or alleged to have been committed or by a lawfully elected or appointed official, trustee, director or council member of a PARTICIPATING MEMBER COUNTIES, but only while acting in that capacity. IT IS FURTHER agreed: (1) There shall be no coverage hereunder for any CLAIM made for any act, error or omission committed or alleged to have been committed prior to the RETROACTIVE DATE. (2) In the event of non-renewal or termination of this POLICY, then this POLICY shall extend to apply to claims made during the twelve (12) calendar months immediately following such non- renewal or termination, but only for any act, error or omission, committed or alleged to have been committed after July 1, 1986 and prior to such non-renewal or termination date. (3) The COMPANY shall not be liable to make payment for loss in connection with any CLAIM made against the NAMED INSURED or a PARTICIPATING MEMBER COUNTY or any of their officials, trustees, directors or council members, if a judgment or final adjudication in any such CLAIM brought shall be based on a determination that acts of fraud or dishonesty were committed by its officials, trustees, directors or council members. LIMIT OF LIABILITY Notwithstanding anything in this POLICY to the contrary, it is understood and agreed that the LIMIT OF LIABILITY for the coverage provided by this Endorsement 2. is limited to $750,000 for each CLAIM but in no event more than $750,000 in the aggregate for any and all such claims brought against the NAMED INSURED or for any and all such claims brought against each PARTICIPATING MEMBER COUNTY and its officials, trustees, directors and council members. -15- INSURED'S COPY It is further understood and agreed that the LIMIT OF LIABILITY of the COMPANY under this Endorsement 2. shall in no event exceed $750,000 in the aggregate for each PARTICIPATING MEMBER COUNTY and NAMED INSURED regardless of the number of CLAIMS, and shall in no event exceed $750,000 regardless of the number of PARTICIPATING MEMBER COUNTIES and/or NAMED INSUREDS in the event more that one claim arises from a series of related acts, errors or omissions. The coverage hereunder will only apply in excess of the SELF-INSURED RETENTION stated in the DECLARATIONS. All other terms and conditions of this policy remain unchanged. DATED: (Ala, Oct q 4 NATIONAL UNION FIRE INSURANCE (C) COMPANY OF PITTSBURGH, PA, By: -.a.-s Q . Otudtahs Its: DATED: / / C O/ COLORADO COUNTIES CASUALTY AND PROPERTY pool_ AND PARTICIPATING / MEMBE UNTIES By: „...717/- _ `--7� ./A - Its: -16- INSURED'S COPY EMPLOYEE BENEFITS LIABILITY ENDORSEMENT (Endorsement 3.) In consideration of the premium paid, it is understood and agreed that this endorsement attaches to and forms part of Policy No. 426-61-62 in the name of COLORADO COUNTIES CASUALTY AND PROPERTY POOL AND PARTICIPATING MEMBER COUNTIES. The effective date of this endorsement is July 1, 1994. In further consideration of the premium paid and subject to the terms, exclusions and definitions hereafter mentioned, the COMPANY agrees to indemnify the NAMED INSURED for all sums which the NAMED INSURED shall become obligated to pay on its behalf or to pay a PARTICIPATING MEMBER COUNTY as a result of the ADMINISTRATION of an EMPLOYEE BENEFITS PROGRAM as defined herein and caused by any act, error or omission of the NAMED INSURED or a PARTICIPATING MEMBER COUNTY or any other person for whose acts the NAMED INSURED or a PARTICIPATING MEMBER COUNTY is legally liable, provided such act, error or omission occurs during the POLICY PERIOD and then only if CLAIM is made and reported to the COMPANY during the POLICY PERIOD or within one year after the end of the POLICY PERIOD. EXCLUSIONS: This POLICY does not apply under this endorsement: (a) to any dishonest, fraudulent, criminal or malicious act, libel, slander, discrimination or humiliation; (b) to PERSONAL INJURY or PROPERTY DAMAGE (including the loss of the thereof); (c) to any claim for failure of performance of contract by any insurer or plan administrator, including but not limited to the failure or insolvency of any EMPLOYEE BENEFIT PROGRAM; (d) to any claim based upon the failure to comply with any law concerning workers' compensation, unemployment insurance, social security or disability benefits; (e) to any claim based upon: (1) the failure of stock of other securities or investments to perform as represented by the NAMED INSURED or a PARTICIPATING MEMBER COUNTY or their representative; (2) advice given by the NAMED INSURED or a PARTICIPATING MEMBER COUNTY or their representative to any employee to participate or not to participate in stock subscription plans; -17- INSURED'S COPY (3) the investment or non-investment of funds; or (4) 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 or common law. DEFINITIONS: As used in this endorsement: (a) "EMPLOYEE BENEFIT PROGRAM" - means 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" - means: (1) giving counsel to employees with respect to an EMPLOYEE BENEFIT PROGRAM; (2) interpreting an EMPLOYEE BENEFIT PROGRAM; (3) handling of records in connection with AN EMPLOYEE BENEFIT PROGRAM; (4) effecting enrollment, termination or cancellation of employees under an EMPLOYEE BENEFIT PROGRAM; provided all such acts are authorized by the NAMED INSURED or a PARTICIPATING MEMBER COUNTY. All other terms and conditions of this policy remain unchanged. DATED: Q c.Jco I , 191 Y NATIONAL UNION FIRE INSURANCE COMPANY OF PITTSBURGH,_ PA. By: 8..i-..e a. UU z t. Its: DATED: /. /'9`?`--/ COLORADO COUNTIES CASUALTY AND PROPERW POOL AND PARTICIPATING MEMBEi4 CU�TIES .-- By: Gtr-�+ L/�- Its: -18- INSURED'S COPY NON-OWNED AIRCRAFT ENDORSEMENT (Endorsement 4.) In consideration of the premium paid, it is understood and agreed that this endorsement attaches to and forms part of Policy No. 426-61-62 in the named of COLORADO COUNTIES CASUALTY AND PROPERTY POOL AND PARTICIPATING MEMBER COUNTIES. The effective date of this endorsement is July 1, 1994. It is understood and agreed that this POLICY applies to Aircraft used by and solely on behalf of the NAMED INSURED or a PARTICIPATING MEMBER COUNTY, provided the NAMED INSURED or PARTICIPATING MEMBER COUNTY: (a) has no ownership interest in the aircraft as owner in whole or in part. (b) exercises no part in the servicing or maintenance of the aircraft, (c) exercises no part in the appointment or provision of personnel for the operation of the aircraft. This Endorsement 4. does not apply: (a) to liability arising out of any product manufactured, sold, or distributed by the NAMED INSURED or a PARTICIPATING MEMBER COUNTY. (b) to any aircraft having a seating capacity, including crew, in excess of the number advised to the COMPANY prior to coverage being afforded hereunder. (c) to liability for loss of or damage to the aircraft or any consequential loss arising therefrom. (d) when the aircraft us used by the NAMED INSURED or a PARTICIPATING MEMBER COUNTY for hire or reward. All other terms and conditions of this policy remain unchanged. DATED: I`,. at, I tat°t4 NATIONAL UNION FIRE INSURANCE U COMPANY OF PITTSBURGH,PA By: 9-_4-44 Q- rtc WCc dt, Its: (/ DATED: -4 / Art•4j-/ COLORADO COUNTIES CASUALTY AND PROPFfRf7POOL AND PARTICIPATING MEMBER OUNTIES � By: ii Its: -19- INSURED'S COPY WATERCRAFT LIABILITY ENDORSEMENT (Endorsement 5.) In consideration of the premium paid, it is understood and agreed that this endorsement attaches to an forms part of Policy No. 426-61-62 in the name of COLORADO COUNTIES CASUALTY AND PROPERTY POOL AND PARTICIPATING MEMBER COUNTIES. The effective sate of this endorsement is July 1, 1994. It is hereby understood and agreed what EXCLUSION 4. does not apply with respect to the ownership, maintenance or use, including loading and unloading of an watercraft by the NAMED INSURED or a PARTICIPATING MEMBER COUNTY, but the insurance with respect to said watercraft does not apply while said watercraft is used to carry persons for hire. All other terms and conditions of this policy remain unchanged. DATED: 9 ,,,Aaa t t L ( NATIONAL UNION FIRE INSURANCE COMPANY OF PITTSBURGH, PA BY: a-�a7 4 . 4(.4Zte e Its: (/ 0 DATED: -�� COLORA6 COUNTIES CASUALTY AND PR;peERTY POOL AND PARTICIPATING / MER 0 'NTIES�� By: /tom-./.% Its: -20- INSURED'S COPY (REVISED 10/20/94) NON-WAIVER OF IMMUNITY OR MAXIMUM AMOUNT RECOVERABLE UNDER THE COLORADO GOVERNMENTAL IMMUNITY ACT OR OTHER LAW (Endorsement 6.) In consideration of the premium paid, it is understood and agreed that this endorsement attaches to and forms part of Policy No. 426-61-62 in the name of COLORADO COUNTIES CASUALTY AND PROPERTY POOL AND PARTICIPATING MEMBER COUNTIES. It is hereby understood and agreed that nothing in this policy nor in any Participating Member County's coverage under this policy waives or is intended to waive pursuant to C.R.S. Section 24-10-114 any immunity granted to any Participating Member County in the Colorado Governmental Immunity Act, as amended from time to time, or granted in any other law, and nothing in this policy nor any Participating Member County's coverage under this policy increases or is intended to increase pursuant to C.R.S. Section 24-20-114 the maximum amount that may be recovered under the Colorado Governmental Immunity Act, as amended from time to time, or under any other law. Any Participating member County's waiver of immunity or increase in the maximum amount that may be recovered must be approved in writing by the COMPANY and by the NAMED INSURED for coverage to attach to such waiver or increase under this policy. All other terms and conditions of this policy remain unchanged. DATED: y0,1 I \S4k NATIONAL UNION FIRE INSURANCE COMPANY OF PITTSBURGH,� nn P.A. By: .11A C,' , OSWV SL Its: r DATED: ///{'h7 COLORADO COUNTIES CASUALTY AND PROPERTY-POOL AND PARTICIPATING MEMBER COUNTIES • By: Its: -21- UNINSURED/UNDERINSURED MOTORISTS COVERAGE (Endorsement 7.) In consideration of the premium paid, it is understood and agreed that this endorsement attaches to and forms part of Policy No. 426-61-62 in the name of COLORADO COUNTIES CASUALTY AND PROPERTY POOL AND PARTICIPATING MEMBER COUNTIES. The effective date of this endorsement is July 1, 1994. It is hereby understood and agreed that the NAMED INSURED and all PARTICIPATING MEMBER COUNTIES have agreed to reject any and all uninsured motorists coverage (including underinsured motorists coverage). All other terms and conditions of this policy remain unchanged. DATED : v I , nit( NATIONAL UNION FIRE INSURANCE COMPANY OF PITTSBURGH, PA BY: Ti—.ue a - Wiact 6 Its: (/ DATED: ..1. i !-J; /7 COLORADO COUNTIES CASUALTY AND 1 PROPERTY POOL AND PARTICIPATING MEMBER.C UNTIES By: Iurl-- y/x - Its: -22- INSURED'S COPY RETROACTIVE DATE ENDORSEMENT (Endorsement 8.) In consideration of the premium paid, it is understood and agreed that this endorsement attaches to and forms part of Policy No. 426-61-62 in the name of COLORADO COUNTIES CASUALTY AND PROPERTY POOL AND PARTICIPATING MEMBER COUNTIES. The effective date of this endorsement is July 1, 1994. It is understood and agreed that Item 6. RETROACTIVE DATE of the DECLARATIONS with respect to the following PARTICIPATING MEMBER COUNTIES shall be as follows: RETROACTIVE DATE PARTICIPATING MEMBER COUNTY (a) January 15, 1986 Weld County (b) February 16, 1987 Cheyenne County (c) April 1, 1987 Lake County (d) July 1, 1987 Grand County (e) July 1, 1987 Montrose County (f) July 1, 1987 Fremont County (g) July 1, 1988 Delta County All other terms and conditions of this policy remain unchanged. DATED: u.e A • t'c � o NATIONAL UNION FIRE INSURANCE COMPANY OF PITTSBURGH,� _., PA By: 9,1.4.0 et-- k'r. taa Its:DATED: ) t L . / COLORADO COUNTIES CASUALTY AND PROPERTY POOL AND PARTICIPATING / MEMBER UNT c By: .-/1-i, z //I-- Its: -23- INSURED'S COPY COLORADO - SPECIAL AMENDATORY ENDORSEMENT (per H.B. 12041 (Endorsement 9.) In consideration of the premium paid, it is understood and agreed that this endorsement attaches to an forms part of Policy No. 426-61-62 in the name of COLORADO COUNTIES CASUALTY AND PROPERTY POOL AND PARTICIPATING MEMBER COUNTIES. The effective date of this endorsement is July 1, 1994. It is hereby agreed that the COMPANY, upon the request of the NAMED INSURED and within thirty (30) days thereafter, shall supply sufficient information to the NAMED INSURED about closed or paid claims, claims for which the COMPANY has established reserves and claims for which the COMPANY has received notices of incidents which could give rise to claims. All other terms and conditions of this policy remain unchanged. DATED: O-, ( , 1 (1 '14 NATIONAL UNION FIRE INSURANCE d COMPANY OF PITTSBURGH, PA By: (\. 1I2.4 a • kstur.a6 Its: G DATED: ' / COLORADO COUNTIES CASUALTY AND PROPERTY POOL AND PARTICIPATING MEMBER NTIES By: ` i.e //-/L. Its: -24- INSURED'S COPY PERSONAL INJURY PROTECTION ENDORSEMENT (Endorsement 10.) In consideration of the premium paid, it is understood and agreed that this endorsement attaches to and forms part of Policy No. 426-61-62 in the name of COLORADO COUNTIES CASUALTY AND PROPERTY POOL AND PARTICIPATING MEMBER COUNTIES. The effective date of this endorsement is July 1, 1994. In consideration for the premium charged, it is hereby understood and agreed that this POLICY is extended to afford Personal Injury Protection coverage in accordance with the standard Endorsement CA2203 (01-87) (or as may be amended in accordance with the Colorado Automobile Reparations Act) in current use on the aforementioned date. In consequence of the foregoing, the amount of ULTIMATE NET LOSS afforded by this POLICY is deemed to have the following maximum limits which will apply for all purposes. BENEFITS LIMIT PER PERSON Medical Expenses Up to $50,000 Rehabilitation Expenses Up to $50,000 Essential Services Expenses up to $25 per day for 52 weeks Death Compensation $1,000 Work Loss Up to $400 per week calculated as follows: 100% of the first $125 of loss of gross income per week; plus 70% of the next $125 of loss of gross income per week; plus 60% of any loss of gross income in excess of $250. All other terms and conditions of this policy remain unchanged. DATED: C I II NATIONAL UNION FIRE INSURANCE COMPANY OF PITTSBURGH, PA v By: 4.-w.s a. . -4-0- b Its: /j DATED: 7.9'A COLORAD OUNTIES CASUALTY AND PROP TY P OL AND PARTICIPATING MEMBER NTIES 1 � By, Its: -25- INSURED'S COPY HOST LIQUOR/DRAMSHOP ACT COVERAGE (Endorsement 11.) In consideration of the premium paid, it is understood and agreed that this endorsement attaches to and forms part of Policy No. 426-61-62 in the name of COLORADO COUNTIES CASUALTY AND PROPERTY POOL AND PARTICIPATING MEMBER COUNTIES. The effective date of this endorsement is July 1, 1994. It is hereby understood and agreed , subject to the terms, CONDITIONS, EXCLUSIONS and LIMIT OF LIABILITY contained within this POLICY, that coverage is afforded hereunder for PERSONAL INJURY and PROPERTY DAMAGE for any claim arising out of Host Liquor or Dramshop Act Liability. It is understood and agreed that this Endorsement 11. is neither intended not should it be constructed to waive any immunities or limitations, including but not limited to common law or statutory defenses, available to the NAMED INSURED, PARTICIPATING MEMBER COUNTIES and/or the COMPANY. All other terms and conditions of this policy remain unchanged. DATED: C (t VON`{ NATIONAL UNION FIRE INSURANCE G COMPANY OF PITTSBURGH, PA By: a _ uu.Ca Its: (/ DATED: / / 917 COLORApO COUNTIES CASUALTY AND PROPERTY POOL AND PARTICIPATING MEMBER NTIES By. c 1r/fr._ Its: -26- INSURED'S COPY FAILURE TO SUPPLY EXCLUSION-UTILITIES (Endorsement 12.) In consideration of the premium paid, it is understood and agreed that this endorsement attaches to and forms part of Policy No. 426-61-62 in the name of COLORADO COUNTIES CASUALTY AND PROPERTY POOL AND PARTICIPATING MEMBER COUNTIES. The effective date of this endorsement is July 1, 1994. This insurance does not apply to any liability arising out of the failure of a PARTICIPATING MEMBER COUNTY to adequately supply gas, water, electricity, steam or solar power, or telephone service. All other terms and conditions of this policy remain unchanged. DATED: Lit ( i °( 't'( NATIONAL UNION FIRE INSURANCE COMPANY OF PITTSBURGH, PA By: c� Is: Q , �� n Its: U DATED: / /49' / COLORADO COUNTIES CASUALTY AND PROPERTY- OL AND PARTICIPATING MEMBE NTIES By: z_ Its: -27- INSURED'S COPY NUCLEAR ENERGY LIABILITY EXCLUSION ENDORSEMENT (BROAD FORM) (Endorsement 13.) 1. This policy does not apply: A. Under any Liability Coverage, to bodily injury or property damage (1) with respect to which an insured under this policy is also an insured under a nuclear energy liability policy issued by Nuclear Energy Liability Insurance Association, Mutual Atomic Energy Liability Underwriters or Nuclear Insurance Association of Canada, or would be an insured under any such policy but for its termination upon exhaustion of its limit of liability; or (2) resulting from the hazardous properties of nuclear material and with respect to which (a) any person or organization is required to maintain financial protection pursuant to the Atomic Energy Act of 1954, or any law amendatory thereof, or (b) the insured is, or had its policy not been issued would be, entitled to indemnity from the United States of America, or any agency thereof, under any agreement entered into by the United Stated of America, or any agency thereof, with any person or organization; B. Under any Medical Payments Coverage, or any Supplemental Payments provision relating to first aid, to expenses incurred with respect to bodily injury resulting from the hazardous properties of nuclear material and arising out of the operation of a nuclear facility by any person or organization. C. Under any Liability Coverage, to bodily injury or property damage resulting from the hazardous properties of nuclear material, if: (1) the nuclear material (a) is at any nuclear facility owned by, or operated by or on behalf of, an insured or (b) has been discharged or dispersed therefrom; (2) the nuclear material is contained in spent fuel or waste at any time possessed, handled, used, processed, stored, transported or disposed of by or on behalf of an insured; or (3) the bodily injury or property damage 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 (3) applies only to property damage to such nuclear facility and any property threat. -28- INSURED'S COPY 2. As used in this endorsement: "hazardous properties" include radioactive, toxic or explosive properties; "nuclear material" means source material, special nuclear material or by-product material; "source material" "special nuclear material", and "by-product material" have the meanings given then in the Atomic Energy Act of 1954 or in any law amendatory thereof; "spent fuel" means any fuel element or fuel component, solid or liquid, which has been used or exposed to radiation in a nuclear reactor; "waste" means any waste material (1) containing by-product material and (2) resulting from the operation by any person or organization of any nuclear facility 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 processing, fabricating or alloying of special nuclear material if at any time the total amount of such material in the custody of the insured at the premises where such equipment or device is located consists of or contains more than 25 grams of plutonium or uranium 233 or any combination thereof, or more than 250 grams of uranium 235. (d) any structure, basin, excavation, premises or place prepared or used for the storage or disposal of waste, and includes the site on which any of the foregoing is located, all operations conducted on such site and all premises used for such operations; "nuclear reactor" means any apparatus designed or used to sustain nuclear fission in a self- supporting chain reaction or to contain a critical mass of fissionable material; "property damage" includes all forms of radioactive contamination of property. IN WITNESS WHEREOF, the Company has caused this policy to be signed by its president and secretary but this policy shall not be valid unless countersigned by a duly authorized representative of the Company. -29- INSURED'S COPY (REVISED 10/20/94) 'OLORADO COUNTIES AMENDATORY ENDORSEMENT 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 an claims-made policy. It applies only to PERSONAL INJURY or PROPERTY DAMAGE that occurs after the RETROACTIVE DATE and before the end of the POLICY PERIOD. It applies only to claims made after the inception date and before the end of the policy period. Upon termination of this policy, an extended reporting period may be available. OCCURRENCE VS. CLAIMS MADE nere is no difference in the kinds of PERSONAL INJURY and PROPERTY DAMAGE covered by either an "occurrence" policy or a "claims-made" policy. Claims for damages may be assigned to different policies, however, depending on which policy you have purchased. In an "occurrence"policy, coverage is provided for liability because of PERSONAL 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 PERSONAL 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 AON Insurance Management Services, Inc. Under most circumstances, a CLAIM is considered made when it is received and recorded by AON Insurance Management Services, Inc., but sometimes, a CLAIM may be deemed made at an earlier time. This can happen when another CLAIM for the same PERSONAL INJURY or PERSONAL DAMAGE has already been made, or when the CLAIM is received and 'corded during the EXTENDED REPORTING PERIOD as described in this disclosure .atement. -30- 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 CONDITIONS (3.), NOTICE OF POTENTIAL CLAIMS. The majority of the limitations, exceptions or reductions within the policy form are outlined in the DEFINITIONS, CONDITIONS and EXCLUSIONS sections of this POLICY. Please read then 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 in the DECLARATIONS, THERE IS NO COVERAGE FOR PERSONAL INJURY OR PROPERTY DAMAGE THAT OCCURRED BEFORE THE RETROACTIVE DATE, EVEN IF THE CLAIM IS FIRST MADE DURING THE POLICY PERIOD. If there is no RETROACTIVE DATE entered in the DECLARATIONS, this POLICY will respond only to claims first made during the POLICY PERIOD for covered PERSONAL INJURY or PROPERTY DAMAGE, no matter when the PERSONAL INJURY or PROPERTY DAMAGE occurred. But if previous "occurrence" type insurance also applied to the PERSONAL INJURY or PROPERTY 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 one in your current policy. -31- INSURED'S COPY 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". This ensures that no PERSONAL INJURY or PROPERTY 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 PERSONAL INJURY or PROPERTY DAMAGE. In any of these circumstances, this POLICY provides you with basic EXTENDED REPORTING PERIOD that has two provisions. The first provides a 60 Day period beyond policy terminations to report claims for PERSONAL INJURY or PROPERTY DAMAGE occurring during the POLICY PERIOD. The PERSONAL 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 LIMIT OF LIABILITY. 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 - This 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 PERSONAL INJURY or PROPERTY DAMAGE occurred before the end of the POLICY PERIOD, but not before the policy's RETROACTIVE DATE. ;laims made, under this EXTENDED REPORTING PERIOD, are subject to a LIMIT OF LIABILITY 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. All other terms and conditions of this policy remain unchanged. DATED: ( u_Q�, II (g 9i( NATIONAL UNION FIRE INSURANCE 0 o COMPANY 9a., OF PITTSBURGH,.�a PA By: II A. -4u tQ1. Its: DATED: COLORADO COUNTIES CASUALTY AND PROPERPf POOL AND PARTICIPATING MEMBE UNTIES By: Its: -32- INSURED'S COPY COLORADO COUNTIES CASUALTY AND PROPERTY POOL (Endorsement 14.) (HEREIN REFERRED TO AS THE COMPANY) CRIME COVERAGE AGREEMENT 1. Participating County: See Endorsement #1 2. Policy Period: July 1, 1994 to July 1, 1995 3. Coverage, Limits of Insurance and Deductible: Coverage Forms Forming Limit of Deductible Parts of this Policy Insurance Amount Coverage Form A $150,000 $500 Coverage Form B $150,000 $500 Coverage Form C $150,000 $500 Coverage Form D $150,000 $500 1. Forms and Endorsement Applicable to this Coverage Part: Coverage Form A Employee Dishonesty - Blanket Coverage Form B Forgery or Alteration Coverage Form C Theft, Disappearance & Destruction Coverage Form D Robbery and Safe Burglary -33- INSURED'S COPY COMMERCIAL CRIME ,OVERAGE FORM A-BLANKET EMPLOYEE DISHONESTY COVERAGE FORM A. COVERAGE b. Inventory Shortages: loss, or that part of We will pay for loss of, and loss from damage to, any loss, the proof of which as to its exis- Covered Property resulting directly from the Cov- tence or amount is dependent upon: ered Cause of Loss. (1)An inventory computation;or 1. Covered Property:"Money", "securities",and (2)A profit and loss computation. "property other than money and securities". 2. Additional Condition 2. Covered Cause of Loss: "Employee dishon- Cancellation As To Any Employee:This insur- esty". ance is cancelled as to any "employee": 3. Coverage Extension: a. Immediately upon discovery by: Employees Temporarily Outside Coverage (1)You;or Territory: (2)Any of your partners, officers or direc- We will pay for loss caused by any"employee" tors not in collusion with the "em- while temporarily outside the territory specified ployee"; in the Territory General Condition for a period not more than 90 days. of any dishonest act committed by that B. LIMIT OF INSURANCE "em- ployee" whether before or after becoming employed by you. The most we will pay for loss in any one "occur- b. On the date specified in a notice mailed to rence"is the applicable Limit of Insurance shown you. That date will be at least 30 days after in the Declarations. the date of mailing. C. DEDUCTIBLE The mailing of notice to you at the last mail- 1. We will not pay for loss in any one "occur- ing address known to us will be sufficient rence" unless the amount of loss exceeds the proof of notice. Delivery of notice is the Deductible Amount shown in the Declarations. same as mailing. We will then pay the amount of loss in excess of 3. Additional Definitions the Deductible Amount,up to the Limit of Insur- a. "Employee Dishonesty"in paragraph A.2. ance. means only dishonest acts committed by an 2. You must "employee", whether identified or not, act- a. Give us notice as soon as possible of any ing alone or in collusion with other persons, loss of the type insured under this Coverage except you or a partner, with the manifest Form even though it falls entirely within the intent to: Deductible Amount. (1)Cause you to sustain loss; and also b. Upon our request, give us a statement de- (2)Obtain financial benefit (other than sal- scribing the loss. aries,commissions,fees,bonuses,pro- D. ADDITIONAL EXCLUSIONS, CONDITION motions, awards, profit sharing, AND DEFINITIONS: In addition to the provi- pensionsearned in or normther employee benefits in the Crime General Provisions Form this earned in the normal course of employ- Coverage Form is subject to the following: ment)for. 1. Additional Exclusions:We will not pay for loss (a) The "employee"; or as specified below: (b) Any person or organization intended a. Employee Cancelled Under Prior Insur- by the "employee" to receive that benefit. ance: b. "Occurrence"means all loss caused by,or loss caused by any "employee" for whom similar prior insurance has been cancelled involving, one or more "employees", and not reinstated since the last such can- whether the result of a single act or series of cellation. acts. Form CR 00 01 01 86 Printed in U.S.A. INSURED'S COPY COMMERCIAL CRIME COVERAGE FORM B FORGERY OR ALTERATION COVERAGE FORM A. COVERAGE D. ADDITIONAL EXCLUSION, CONDITIONS We will pay for loss involving Covered Instruments AND DEFINITION resulting directly from the Covered Causes of Loss. In addition to the provisions in the Crime General 1. Covered Instruments: Checks, drafts, promis- Provisions Form, this Coverage Form is also sub- sory notes, or similar written promises. orders 1ect to the following: • or directions to pay a sum certain in "money" 1. Additional Exclusion that are: Acts of Employees, Directors, or Trustees: We will not pay for loss resulting from any a. Made or drawn by or drawn upon you; dishonest or criminal act committed by any of b. Made or drawn by one acting as your agent: your "employees", directors, or trustees: or drawn.that are purported to have been so made or a. Whether acting alone or in collusion with other persons; 2. Covered Causes Of Loss: Forgery or alter- or ation of, on or in any Covered Instrument. b. Whether while performing services for you 3. Coverage Extension or otherwise. Legal Expenses: If you are sued for refusing to Additional Conditions pay any Covered Instrument on the basis that it a. Facsimile Signatures: We will treat me- has been forged or altered, and you have our chanically reproduced facsimile signatures written consent to defend against the suit, we the same as handwritten signatures. will pay for any reasonable legal expenses that you incur and pay in that defense. The amount b. General Amendment: As respects this we will pay under this extension is in addition to Coverage Form, tGe words Covered Prop- the Limit of Insurance applicable to this insur- in the Crime General Provisions Form an Covered Instruments. ance. me B. LIMIT OF INSURANCE e. Proof of Loss: You must include with your proof of loss any instrument involved in that The most we will pay for loss in any one "occur- loss, or, if that is not possible, an affidavit rence"is the applicable Limit of Insurance shown in setting forth the amount and cause of loss. the Declarations. d. Territory: We will cover loss you sustain C. DEDUCTIBLE anywhere in the world. We will not pay for loss in any one "occurrence" The Territory General Condition does not apply to this Coverage Form. unless the amount of loss exceeds the Deductible Amount shown in the Declarations. We will then 3. Additional Definition pay the amount of loss in excess of the Deductible "Occurrence" means all loss caused by any Amount, up to the Umit of Insurance.This provision person or in which that person is involved. does not apply to legal expenses paid under the whether the loss involves one or more instru- Coverage Extension. ments. Form CR 00 03 01 86 Printed in U.S.A. INSURED'S COPY COMMERCIAL CRIME Coverage Form C THEFT, DISAPPEARANCE AND DESTRUCTION COVERAGE FORM A. COVERAGE-We will pay for loss of Covered c. Coverage Extension Property resulting directly from the Covered Conveyance of Property By Armored Causes of Loss. Motor Vehicle Company: We will pay for 1. Section 1.—Inside The Premises loss of Covered Property resulting directly a. Covered Property: "Money" and from the Covered Causes of Loss while out- "securities" inside the "premises" or a side the"premises"in the care and custody "banking premises". of an armored motor vehicle company. b. Covered Causes of Loss But,we will pay only for the amount of loss that you cannot recover: (1) "Theft" (1) Under your contract with the armored (2) Disappearance motor vehicle company; and (3) Destruction (2) From any insurance or indemnity carried c. Coverage Extensions by,or for the benefit of customers of,the armored motor vehicle company. (1) Containers of Covered Property: We B. LIMIT OF INSURANCE will pay for loss of, and loss from damage to, a locked safe, vault, cash The most we will pay for loss in any one "oc- register, cash box or cash drawer lo- currence" is the applicable Limit of Insurance cated in the "premises" resulting di- shown in the DECLARATIONS. rectly from an actual or attempted: C. DEDUCTIBLE (a) "Theft" of; or We will not pay for loss in any one "occurrence" (b) Unlawful entry into unless the amount of loss excess the Deductible those containers. Amount shown in the DECLARATIONS. We will then pay the amount of loss in excess of the De- (2) Premises Damage: We will pay for loss ductible Amount, up the the Limit of Insurance. from damage to the "premises" or its D. ADDITIONAL EXCLUSIONS, CONDI- exterior resulting directly from an actual TIONS AND DEFINITIONS: or attempted "theft" of Covered Prop- erty if you are the owner of the In addition to the provisions in the Crime General "premises"or are liable for damage to it. Provisions form this Coverage form is subject to 2. Section 2.—Outside the Premises the following: a. Covered Property: "Money" and 1. Additional Exclusions:We will not pay for loss "securities" outside the "premises" in the as specified below: care and custody of a "messenger". a. Accounting or Arithmetical Errors or b. Covered Causes of Loss Omis- sions: Loss resulting from accounting or arithmetical errors or omissions. (1) "Theft" b. Acts of Employees, Directors,Trustees or (2) Disappearance Representatives: Loss resulting from any dishonest or criminal act committed by any (3) Destruction of your"employees",directors,trustees or authorized representatives: Form CR 00 04 02 87 Printed in U.S.A. Page 1 of 2 Copyright, Insurance Services Office, 1984, 1987 INSURED'S COPY THEFT, DISAPPEARANCE AND DESTRUCTION COVERAGE FORM 9 (1) Acting alone or in collusion with other • Vandalism: Loss from damage to the persons:or "premises" or its exterior or to containers of Covered Property by vandalism or mali- (2) While performing services for you or cious mischief. otherwise. h. Voluntary Parting of Title to or Possession c. Exchanges or Purchases: Loss resulting of Property: Loss resulting from your. or from the giving or surrendering of property anyone acting on your express or implied in any exchange or purchase. authority, being induced by any dishonest act to voluntarily part with title to or posses- d. Fire: Loss from damage to the "premises" sion of any property. resulting from fire, however caused. 2. Additional Condition e. Money Operated Devices:Loss of property contained in any money operated device Duties in the Event of Loss:If you have reason unless the amount of"money"deposited in to believe that any loss of,or loss from damage it is recorded by a continuous recording in- to,Covered Property involves a violation of law, strument in the device. you must notify the police. f. Transfer or Surrender of Property 3. Additional Definitions (1) Loss of property after it has been trans- a. "Banking Premises" means the interior of ferred or surrendered to a person or that portion of any building occupied by a place outside the "premises" or "bank- banking institution or similar safe depos- ing premises": itory. (a) On the basis of unauthorized instruc- b. "Messenger"means you,any of your part- tions;or ners or any "employee" while having care and custody of the property outside the (b) As a result of a threat to do: "premises". i. Bodily harm to any person; or ii. Damage to any property. c. "Occurrence" means an: (2) But,this exclusion does not apply under (1) Act or series of related acts involving COVERAGE. Section 2. to loss of Coy- one or more persons; or ered Property while outside the (2) Act or event,or series of related acts or "premises" or "banking premises" in events not involving any person. the care and custody of a "messenger" if you: d. "Premises" means the interior of that por- (a) Had no knowledge of any threat at tion of any building you occupy in conduct- the time the conveyance began;or ing your business. (b) Had knowledge of a threat at the time e. "Theft" means any act of stealing. the conveyance began, but the loss was not related to the threat. Page 2 of 2 Form CR 00 04 02 87 Printed in U.S.A. Copyright, Insurance Services Office, 1984, 1987 INSURED'S COPY COMMERCIAL CRIME Coverage Form D ROBBERY AND SAFE BURGLARY COVERAGE FORM A. COVERAGE-We will pay for loss of,and loss money and securities" outside the from damage to, Covered Property resulting di- "premises" in the care and custody of a rectly from the Covered Causes of Loss. "messenger". 1. Section 1. —Inside The Premises b. Property Not Covered:Motor vehicles,trail- a. Robbery Of A Custodian ers or semi-trailers or equipment and ac- cessories attached to them. (1) Covered Property: "Property other than money and securities" inside the c. Covered Cause of Loss: Actual or at- "premises" in the care and custody of a tempted "robbery". "custodian". d. Coverage Extension (2) Property Not Covered: Motor vehicles, Conveyance Of Property By Armored trailers, or semi-trailers or equipment Motor Vehicle Company: We will pay for and accessories attached to them. loss of, and loss from damage to, Covered (3) Covered Cause of Loss: Actual or at- Property resulting directly from the Covered tempted "robbery". Cause of Loss while outside the"premises" in the care and custody of an armored motor (4) Coverage Extension vehicle company. Premises Damage:We will pay for loss But,we will pay only for the amount of loss from damage to the "premises" or its you cannot recover: exterior resulting directly from the Cov- ered Cause of Loss,if you are the owner (1) Under your contract with the armored of the "premises" or are liable for motor vehicle company; and damage to it. (2) From any insurance or indemnity carried b. Safe Burglary by,or for the benefit of customers of,the a armored motor vehicle company. (1) Covered Property:rty:"Property other than B. LIMIT OF INSURANCE money and securities" inside the "premises" in a safe or vault. The most we will pay for loss in any one "occ- urrence" is the applicable Limit of Insurance shown in the DECLARATIONS. tempts "safe burglary". (3) Coverage Extension C. DEDUCTIBLE Premises,Safe and Vault Damage:We We will not pay for loss in any one "occurrence" will pay for loss from damage to: unless the amount of loss exceeds the Deductible Amount shown in the DECLARATIONS. We will (a) The "premises"or its exterior; or then pay the amount of loss in excess of the De- b) A locked safe or vault located inside ductible Amount up to the Limit of Insurance. the "premises"; D. ADDITIONAL EXCLUSIONS, CONDI- resulting directly from the Covered TIONS AND DEFINITIONS: Cause of Loss, if you are the owner of In addition to the provisions in the Crime General the property or liable for damage to it. Provisions form,this Coverage Form is subject to 2. Section 2. —Outside The Premises the following: a. Covered Property: "Property other than 1. Additional Exclusions:We will not pay for loss as specified below: Form CR 00 05 02 87 Printed In U.S.A. Page 1 of 2 Copyright, Insurance Services Office, 1984, 1987 INSURED'S COPY ROBBERY AND SAFE BURGLARY COVERAGE FORM a. Acts of Employees,Directors,Trustees or or partially completed articles made of or Representatives: Loss resulting from any containing such materials that constitute dishonest or criminal act committed by any the principal value of such articles;or of your"employees",directors,trustees or (2) Manuscripts, drawings, or records of authorized representatives: any kind or the cost of reconstructing (1) Acting alone or in collusion with other them or reproducing any information persons;or contained in them. (2) While performing services for you or 3. Additional Definitions otherwise. a. "Custodian" means you, any of your b. Fire: Loss resulting from fire, however partners or any "employee" while hay- caused,except loss from damage to a safe ing care and custody of the property in- or vault side the "premises", excluding any c. Transfer or Surrender of Property person while acting as a"watchperson" (1) Loss of, or loss from damage to, prop- or janitor. erty after it has been transferred or sur- b. "Messenger means you, any of your rendered to a person or place outside partners or any "employee" while hav- the "premises": ing care and custody of the property out- side the "premises." (a) On the basis of unauthorized instruc- tions or c. "Occurrence" means an: (b) As a result of a threat to do: (1) Act or series of related acts involving harm to any one or more persons;or i. Bodily person;or ii. Damage to any property. (2) Act or event, or a series of related acts or events not involving any per- (2) But,this exclusion does not apply under son COVERAGE, Section 2. to loss of Cov- ered Property while outside the d. "Premises" means the interior of that "premises" in the care and custody of a portion of any building you occupy in "messenger" if you: conducting your business. (a) Had no knowledge of a threat at the e. "Robbery"means the taking of property time the conveyance began;or from the care and custody of a person by (b) Had knowledge of a threat at the time one who has: the conveyance began, but the loss (1) Caused or threatened to cause that was not related to the threat. person bodily harm;or d. Vandalism:Loss from damage to any prop- (2) Committed an obviously unlawful act erty by vandalism or malicious mischief. witnessed by that person. 2. Additional Conditions f. "Safe Burglary" means the taking of: a. Duties in the Event of Loss: If you have (1) Property from within a locked safe or reason to believe that any loss of, or loss vault by a person unlawfully entering from damage to,Covered Property involves the safe or vault as evidenced by a violation of law,you must notify the police. marks of forcible entry upon its exte- b. Special Limit of Insurance for Specified rior,or Property (2) A safe or vault from inside the We will only pay up to $1,000 for any one "premises". "occurrence" of loss of, and loss from g. "Watchperson"means any person you damage to: retain specifically to have care and cus- (1) Precious metals, precious or semi-pre- tody of property inside the "premises" cious stones,pearls,furs,or completed and who has no other duties. Page 2 of 2 Form CR 00 05 02 87 Printed in U.S.A. Copyright, Insurance Services Office, 1984, 1987 INSURED'S COPY COMMERCIAL CRIME CRIME GENERAL PROVISIONS Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights,duties and what is or is not covered. Throughout this policy the words "you" and "your" tion, nuclear radiation or radioactive contami- refer to the Named Insured shown in the DECLARA- nation, or any related act or incident. TIONS. The words "we, "'s" and "our" refer to the 6. War and Similar Actions: Loss resulting Company providing this Insurance. from war, whether or not declared, warlike action, insurrection, rebellion or revolution, or Words and phrases in quotation marks are defined in any related act or incident. the policy. B. GENERAL CONDITIONS Unless stated otherwise in any Crime Coverage 1. Consolidation—Merger. If through consol- Form, DECLARATIONS or endorsement, the follow- idation or merger with, or purchase of assets ing General Exclusions,General Conditions and Gen- of, some other entity: eral Definitions apply to all Crime Coverage Forms a. Any additional persons become "employ- forming part of this policy. ees"; or b. You acquire the use and control of any A. GENERAL EXCLUSIONS: We will not pay additional "premises"; for loss as specified below: any insurance afforded for "employees" or 1. Acts committed by You or Your Partners: "Premises" also applies to those additional Loss resulting from any dishonest or criminal "employees" and "premises but only If you: act committed by you or any of your partners a. Give us written notice within 30 days there- whether acting alone or in collusion with other after, and persons. b. Pay us an additional premium. 2. Governmental Action: Loss resulting from 2. Coverage Extensions: Unless stated other- seizure or destruction of properly by order of wise in the Coverage Form, our liability under governmental authority. any Coverage Extension is part of, not in 3. Indirect Loss: Loss that is an indirect result addition to, the Limit of Insurance applying to of any act or "occurrence" covered by this the Coverage or Coverage Section. insurance including, but not limited to, loss 3. Discovery Period for Loss: We will pay only resulting from: for covered loss discovered no later than one a. Your inability to realize income that you year from the end of the policy period. would have realized had there been no 4. Duties in the Event of Loss: After you dis- loss of. or loss from damage to, Covered cover a loss or a situation that may result in Property. loss of, or loss from damage to. Covered b. Payment of damages of any type for which Property you must you are legally liable. But, we will pay a. Notify us as soon as possible. compensatory damages arising directly b. Submit to examination under oath at our from a loss covered under this insurance. request and give us a signed statement of c. Payment of costs, fees or other expenses your answers. you incur in establishing either the exist- c. Give us a detailed, sworn proof of loss ence or the amount of loss under this within 120 days. insurance. d. Cooperate with us in the investigation and 4. Legal Expenses: Expenses related to any settlement of any claim. legal action. 5. Joint Insured 5. Nuclear: Loss resulting from nuclear reac- a. If more than one Insured is named in the Form CR 10 00 07 88 Printed In U.S.A. Page 1 of 4 Copyright, Insurance Services Office. 1984. 1987 INSURED'S COPY CRIME GENERAL PROVISIONS COMMERCIAL CRIME DECLARATIONS, the first named Insured when the acts or events causing the will act for itself and for every other In- loss were committed or occurred. sured for all purposes of this insurance. If b. The insurance under this Condition is part the first named Insured ceases to be cov- ered, then the next named Insured will an not In addition to,h the n Limits of and is become the first named Insured. ante applying s this he amount ou is b. If any Insured or partner or officer of that limited to the e lesser of the recov- Insured has knowledge of any information (rabic under. relevant to this insurance, that knowledge (1) This insurance as of its effective date; iS considered knowledge of every Insured. or c. An "employee" of any Insured is consid- (2) The prior insurance had it remained in ered to be an "employee" of every In- affect sured. 9.Loss Covered Under This Insurance and • d. If this insurance or any of its coverages is Prior Insurance Issued by Us or Any Affiliate cancelled or terminated as to any Insured, If any loss is covered: loss sustained by that Insured is covered a. Partly by this insurance; and only if discovered no later than one year b. Partly by any prior cancelled or terminated from the date of that cancellation or termi- insurance that we or any affiliate had is- nation. sued to you or any predecessor in interest e. We will not pay more for loss sustained by the most we will a more than one Insured than the amount P Y is the larger of the amount recoverable under this insurance or we would pay if all the loss had been the prior insurance. sustained by one Insured. 10.Non-Cumulation of Umit of Insurance: Re- 6. Legal Action Against Us: You may not bring gardless of the number of years this insurance any legal action against us involving loss: remains in force or the number of premiums a. Unless you have complied with all the paid, no Limit of Insurance cumulates from terms of this insurance; and year to year or period to period. b. Until 90 days after you have filed proof of 11. Other Insurance: This insurance does not loss with us; and apply to loss recoverable or recovered under c. Unless brought within 2 years from the other insurance or indemnity. However, if the date you discover the loss. limit of the other insurance or indemnity is 7. Loss Covered Under More Than One Cover- insufficient to cover the entire amount of the age of This Insurance: If two or more cover- loss, this insurance will apply to that part of ages of this insurance apply to the same loss, the loss, other than that falling within any we will pay the lesser of: deductible amount, not recoverable or recov- a. The actual amount of loss; or ered under the other insurance or indemnity, b. The sum of the limits of insurance applica- but not for more than the Limit of Insurance. ble to those coverages. 12.Ownership of Property; Interests Covered: The property covered under this insurance is 8. Loss Sustained During Prior Insurance erty: a. If you,or any a.li Thatted to opuo own predecessor in interest, sus- a. you or hold; or tamed loss during the period of any prior insurance that you or the predecessor in b. For which you are legally liable. interest could have recovered under that However, this insurance is for your benefit insurance except that the time within only. It provides no rights or benefits to any which to discover loss had expired,we will other person or organization. pay for it under this insurance, provided: 13.Policy Period (1) This Insurance became effective at the a. The Policy Period is shown in the DECLA- time of cancellation or termination of RATIONS. the prior Insurance; and b. Subject to the Loss Sustained During Prior (2) The loss would have been covered by Insurance condition, we will pay only for this insurance had it been in effect loss that you sustain through acts commit- Page 2 of 4 Form CR 10 00 07 SS Printed In U.S.A. Copyright,Insurance Services Office, 1984, 1987 INSURED'S COPY CRIME GENERAL PROVISIONS COMMERCIAL CRIME ted or events occurring during the Policy rate of exchange on the day the Period. loss was discovered. 14.Records: You must keep records of all Coy- (2) Loss of "securities" but only up to and ered Property so we can verify the amount of including their value at the close of any loss. business on the day the loss was dis- 15.Recoveries covered. We may, at our option: a. Any recoveries, less the cost of obtaining (a) Pay the value of such "securities" them, made after settlement of loss cov- or replace them in kind, in which ered by this insurance will be distributed event you must assign to us all your as follows: rights, title and interest in and to those "securities"; (1) To you, until you are reimbursed for (b) Pay the cost of any Lost Securities any loss that you sustain that exceeds the Limit of Insurance and the Deduct- Bond required in connection with ible Amount, if any; issuing duplicates of the "secu- rities". However, we will be liable (2) Then to us.until we are reimbursed for only for the payment of so much of the settlement made; the cost of the bond as would be (3) Then to you, until you are reimbursed charged for a bond having a pen- for that part of the loss equal to the ally not exceeding the lesser of the: Deductible Amount, if any. i. Value of the "securities" at the b. Recoveries do not include any recovery: close of business on the day the loss was discovered; or (1) From insurance, suretyship, reinsur- ance, security or indemnity taken for our benefit; or (3) Loss of. or loss from damage to. (2) Of original"securities"after duplicates "property other than money and secu- of them have been issued. rifles" or loss from damage to the "premises" for not more than the: 16.Territory: This insurance covers only acts (a) Actual cash value of the property committed or events occurring within the on the day the loss was discovered; United States of America, U. S.Virgin Islands, Puerto Rico, Canal Zone, or Canada. (b) Cost of repairing the property or 17.Transfer of Your Rights of Recovery Against "premises"; or Others to Us: You must transfer to us all (c) Cost of replacing the property with your rights of recovery against any person or property of like kind and quality. organization for any loss you sustained and We may, at our option, pay the actual for which we have paid or settled. You must cash value of the property or repair or also do everything necessary to secure those replace it. rights and do nothing after loss to impair If we cannot agree with you upon the them. actual cash value or the cost of repair 18.Valuation — SetOement or replacement, the value or cost will a. Subject to the applicable Limit of Insur- be determined by arbitration. once provision we will pay for. b. We may, at our option, pay for loss of, or (1) Loss of "money" but only up to and loss from damage to, property other than "money": including its face value.We may,at our (1) In the "money" of the country in option,pay for loss of "money" issued which the loss occurred; or by any country other than the United States of America: (2) In the United States of America dollar equivalent of the"money" of (a) At face value in the "money" is- sued by that country; or the country in which the loss oc- curred determined by the rate of (b) In the United States of America exchange on the day the loss was dollar equivalent determined by the discovered. Form CR 10 00 07 88 Printed In U.S.A. Page 3 of 4 Copyright,Insurance Services Office, 1984, 1987 INSURED'S COPY CRIME GENERAL PROVISIONS COMMERCIAL CRIME c. Any property that we pay for or replace ing acts coming within the scope of the becomes our property. usual duties of an employee. C. GENERAL DEFINITIONS 2. "Money" means: 1. "Employee" means: a. Currency, coins and bank notes in current use and having a face value; and a. Any natural person: b. Travelers checks, register checks and (1) While in your service (and for 30 days money orders held for sale to the public. after termination of service); and (2) Whom you compensate directly by sal- 3. "Properly Other Then Money and Securi- ary, wages or commissions: and ties" means any tangible property other than (3) Whom you have the right to direct and "money" and "securities" that has intrinsic value but does not include any property listed control while performing services for in any Coverage Form as Property 9 Not Coy- you; or ered. b. Any natural person employed by an em- 4. "Securities" means negotiable and non- ployment contractor while that person is negotiable instruments o contracts repre- subject to your direction and control and senting either "money" or other property and performing services for you excluding, however, any such person while having includes: care and custody of property outside the a. Tokens,tickets,revenue and other stamps "premises". (whether represented by actual stamps or But "employee" does not mean any: unused value in a meter) in current use; (1) Agent, broker, factor, commission mer- and chant, consignee, independent contractor . b. Evidences of debt issued in connection or representative of the same general with credit or charge cards, which cards character; or are not issued by you; (2) Director or trustee except while perform- but does not include "money". Page 4 of 4 Form CR 10 00 07 88 Printed In U.S.A. Copyright Insurance Services Office. 1984. 1987 INSURED'S COPY COVERAGE C. PREMISES MEDICAL PAYMENTS (Endorsement 15.) In consideration of the premium paid, it is understood and agreed that this endorsement attaches to and forms part of Policy No. 426-61-62 in the name of COLORADO COUNTIES CASUALTY AND PROPERTY POOL AND PARTICIPATING MEMBER COUNTIES. The effective date of this endorsement is July 1, 1994. 1. Insuring Agreement a. We will pay medical expenses as described below for the bodily injury caused by an accident in the amount of $5,000 each person, $100,000 each loss: (1) on your premises; (2) on the ways immediately adjoining premises; or (3) because of you operations; provided that: (1) the accident takes place in the coverage territory and during the policy period; (2) the expenses are incurred and reported to us within one year of the date of the accident; and (3) the injured person submits to examination, at our expense, by physicians of our choice as often as we reasonable require. b. We will make these payments regardless of fault. We will pay reasonable expenses for: (1) first aid at the time of the accident; (2) necessary medical, surgical, x-ray and dental services, including prosthetic devices; and (3) necessary ambulance, hospital, professional nursing and funeral services. 2. Exclusions We will not pay expenses for bodily injury: a. to any insured. b. to a person hired to do work for or on behalf of any insured or a tenant of any insured. c. to a person injured on that part of your premises that the person normally occupies. d. to a person whether or not an employee of any insured, if benefits for the bodily injury are payable or must be provided under workers' compensation, disability benefits law, or a similar law. e. to a person injured while taking part in, supervising, or instructing any physical sport including: (1) physical training or practicing; (2) athletic activities or contests; and (3) recreational activities; whether such activities are organized or not, formal or informal. -34- INSURED'S COPY f. included within the products-completed operations hazard. g. due to war, whether or not declared, or any act or condition incident to war. War includes civil war, insurrection, rebellion or revolution. h. inmate medical payments: "it is hereby understood and agreed that coverage for other than Automobile Medical Payments under this policy excludes payments to or for any person who is sentenced and imprisoned in, committed to, confined in, or detained for safekeeping in any county jail or other detention facility.: All other terms and conditions of this policy remain unchanged. DATED: a u.L�J i I I 19 4 NATIONAL UNION FIRE INSURANCE COMPANY OF PITTSBURGH, PA By: `J.00e Ca . u[tt" �a Its: V DATED: / /4}491/ COLORADO COUNTIES CASUALTY AND PROPERTY P OL AND PARTICIPATING MEMBE NTIES By: x� Its: -35- INSURED'S COPY AUTO MEDICAL PAYMENTS COVERAGE (Endorsement 16.) This endorsement modifies insurance provided under the following: BUSINESS AUTO COVERAGE FORM A. COVERAGE We will pay reasonable expenses incurred for necessary medical and funeral services to or for any "Insured" who sustains "bodily injury" caused by "Accident". We will pay only those expenses incurred, for services rendered within three years from the date of the "accident". B. WHO IS AN INSURED "NAMED INSURED" - means the entity stated in Item 1. of the DECLARATIONS and its elected and appointed officials, trustees, directors, officers, employees, agents and volunteers, but only to the extent such individuals are acting within the scope of their official duties with the NAMED INSURED. C. EXCLUSIONS This insurance does not apply to any of the following: 1. "Bodily injury" sustained by an "Insured" while "occupying" a vehicle located for use as a premises. 2. "Bodily injury" sustained by you or any "family member" while "occupying" or struck by any vehicle (other than a covered "Auto") owned by you or furnished or available for your regular use. 3. "Bodily injury" sustained by any "family member"while "occupying" or struck by any vehicle (other than a covered "auto") owned by or furnished or available for the regular use of any "family member". 4. "Bodily injury" to your employee arising out of and in the course of employment by you. However, we will cover "bodily injury" to your domestic employees if not entitled to worker's compensation benefits. 5. "Bodily Injury" to an "Insured" while working in a business of selling, servicing, repairing or parking "autos" unless that business is yours. 6. "Bodily injury" caused by declared or undeclared war or insurrection or any of their consequences. 7. "Bodily injury" to anyone using a vehicle without a reasonable belief that the person is entitled to do so. D. LIMIT OF INSURANCE Regardless of the number of covered "autos", "Insured", premiums paid, claims made or vehicles involved in the "accident", the most we will pay for "bodily injury" for each "Insured" injured in any one accident" is the LIMIT OF INSURANCE for AUTO MEDICAL PAYMENTS COVERAGE, $5,000 each person/$100,000 each loss. -36- INSURED'S COPY E. CHANGES IN CONDITIONS The CONDITIONS are changed for AUTO MEDICAL PAYMENTS COVERAGE as follows 1. The TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US Condition does not apply. 2. The reference in OTHER INSURANCE to "other collectible insurance" applies only to other collectible auto medical payments insurance. F. ADDITIONAL DEFINITIONS The following are added to DEFINITIONS Section: 1. "Family members" means a person related to you by blood, marriage or adoption who is a resident of your household, including a ward or foster child. 2. "Occupying" means in, upon, getting in, on, out or off. All other terms and conditions of this policy remain unchanged. DATED: a ,•D_Q II 1 ,14 NATIONAL UNION FIRE INSURANCE COMPANY OF PITTSBURGH, PA By: 2h, 4 . ii-cuttric Its: DATED: /qq� COLORADO COUNTIES CASUALTY AND PROPERTY P OL AND PARTICIPATING MEMBER 0 NTIES By: Its: -37- INSURED'S COPY INSURED'S COPY Revised Endorsement 17 It is understood and agreed that this endorsement attaches to and forms part of Policy No. 426-61-62 in the name of COLORADO COUNTIES CASUALTY AND PROPERTY POOL AND PARTICIPATING MEMBER COUNTIES. The effective date of this endorsement is July 1, 1994. • In consideration of a return premium of$42,308., it is hereby understood and agreed that the following Counties are deleted from this policy: DOUGLAS PROWERS All other terms and conditions of this policy remain unchanged. DATED: n 19 S 1 NATIONAL UNION FIRE INSURANCE a COMPANY OF PITTSBURGH, PA BY: (`// c.u.4 Lk Its: DATED: \ / / COLORADO COUNTIES CASUALTY AND PROPERTY OL AND PARTICIPATING MEMBER By: Its: INSURED'S COPY INTRODUCTION TMaStfuI This policy protects against a variety of losses. Policy Number: GF03400003 -- There are also some restrictions. We've written this policy in plain, easy-to-understand English. We encourage you to read it carefully to determine what is and what is not covered, as well as the rights and duties of those protected. The words you, your and yours mean the endorsements. Endorsements are documents insured named here: that change your policy. The Policy Forms List shows all the forms included when this policy Colorado Co. Casualty & Property Pool begins. 1177 Grant Street Denver, Colorado 80203 One of our authorized representatives must also countersign the policy before it is valid. This policy will begin on 07-01-94 and will continue until 07-01-95 Which is a: Your former policy number: GF03400001 Government Entity is automatically cancelled on the date this policy begins. We, us, our and ours mean St. Paul Fire and Marine Insurance Company. We're a capital stock In return for your premium, we'll provide the company located in St. Paul, Minnesota. protection stated in this policy. Your premium is $193,848. Your policy is composed of General Rules, an explanation of What To Do If You Have A Loss, one or more Coverage Summaries, and one or more Insuring Agreements explaining your coverage. It may also include one or more FORMS INCLUDED WHEN YOUR POLICY BEGINS Manuscript Form CC (7-94) Our authorized representative is: 126059-3 Aon Insurance Management Services, Inc tray-tr P+`_" 230 West Monroe; Suite 930 President. dent Chicago, Illinois 60606 CJ �� Nd/ /17 G. — \uthorized Representative Date Secretary Processing Date 07/28/94 14:55 002 40700 Ed.5-84 Printed in U.S.A. Introduction @St.Paul Fire and Marine Insurance Co.1984 Page 1 of 2 ENDORSEMENT 1 TO INTRODUCTION PAGE is hereby understood and agreed that the Named Insured is as follows: NAMED INSURED: Colorado Counties Casualty & Property Pool and each county member as endorsed herein as their interest may appear: County Membership Member Counties Member Counties Alamosa Las Animas Archuleta Lincoln Baca Logan Bent Mineral Chaffee Montrose Cheyenne Morgan Clear Creek Otero Conejos Ouray Costilla Park .rowley Phillips Delta Pitkin Dolores Pueblo Eagle Rio Blanco Elbert Rio Grande Fremont Routt Garfield Saguache Gilpin San Juan Grand Sedgwick Gunnison Summit Hinsdale Teller Huerfano Washington Jackson Weld Kiowa Yuma Kit Carson La Plata Lake ENDORSEMENT attaching to and forming part of Policy Number GF03400003 in the name of Colorado Counties, Casualty and Property Pool. 5ffective date of this endorsement is July 1, 1994 CC (7-94) The StPaul OTHER TERMS AND CONDITIONS Unless physically deleted by the Company, the following clauses shall be paramount and shall supersede and nullify any contrary provision of the Policy. This Policy does not insure against loss or damage caused by or resulting from: (1) Hostile or warlike action in time of peace or war, including action in hindering, combating or defending against an actual impending or expected attack, (a) by any government or sovereign power (de jure or de facto), or by any authority maintaining or using military, naval or air forces; or (b) by military, naval or air forces; or (c) by an agent of any such government, power, authority or forces; (2) Any weapon of war, employing atomic fission or radioactive force whether in time of peace or war; (3) Insurrection, rebellion, revolution, civil war, usurped power, or action taken by govern- mental authority in hindering, combating or defending against such an occurrence, seizure or destruction under quarantine or Customs regulations, confiscation by order of any government or public authority, or risks of contraband or illegal transportation or trade. It is agreed that if this Policy insures against the peril of Fire, Clause A below shall apply, but if its Policy does not insure against the peril of Fire, Clause B below shall apply, as follows: A. This Company shall not be liable for loss by nuclear reaction or nuclear radiation or radioactive contamination, all whether controlled or uncontrolled, and whether such loss be direct or indirect, proximate or remote, or be in whole or in part caused by, contributed to, or aggravated by the peril(s) insured against in this Policy; however, subject to the foregoing and all provisions of this Policy, direct loss by fire resulting from nuclear reaction or nuclear radiation or radioactive contamination is insured against by this Policy. B. This Company shall not be liable for loss by nuclear reaction or nuclear radiation or radioactive contamination, all whether controlled or uncontrolled, and whether such loss be direct or indirect, proximate or remote, or be in whole or in part caused by, contributed to, or aggravated by the peril(s) insured against in this Policy. THIS POLICY IS MADE AND ACCEPTED SUBJECT TO THE FOREGOING STIPULATIONS AND CONDITIONS, together with such other provisions, agreements or conditions as may be endorsed hereon or added hereto; and no officer, agent or other representative of this Company shall have power to waive or be deemed to have waived any provision or condition of this Policy unless such waiver, if any, shall be written upon or attached hereto, nor shall any privilege or permission affecting the insurance under this Policy exist or be claimed by the Insured unless so written or attached. CC (7-94) Page 1 of 4 CONDITIONS MISREPRESENTATION OR FRAUD. This Policy shall be void if the Insured has concealed or misrepresented any material fact or circumstances concerning this insurance or the subject thereof or in case of any fraud, attempted fraud or false swearing by the Insured touching any matter relating to this insurance or subject thereof, before or after a loss. NOTICE OF LOSS. The Insured shall as soon as practicable report to this Company or its agent every loss or damage which may become a claim under this Policy and shall also file with the Company or its agent within ninety (90) days from date of loss a detailed sworn proof of loss. Failure by the Insured to report the said loss or damage and to file such proof of loss as hereinbefore provided shall invalidate any claim under this Policy for such loss. EXAMINATION UNDER OATH. The Insured shall submit, and so far as in within his/her or their power shall cause all other persons interested in the property and members of the household and employees to submit, to examinations under oath by any persons named by the Company, relative to any and all matters in connection with a claim and subscribe the same: and shall produce for examination all books of account, bills, invoices, and other vouchers or certified copies thereof if originals be lost, at such reasonable time and place as may be designated by the Company or its representatives, and shall permit extracts and copies thereof to be made. SETTLEMENT OF LOSS. All adjusted claims shall be paid or made good to the Insured within sixty (60) days after presentation and acceptance of satisfactory proof of interest and loss at the office of this Company. No loss shall be paid hereunder if the Insured has collected the same from others. NO BENEFIT TO BAILEE. This insurance shall in no wise inure directly or indirectly to the benefit of any carrier or other bailee. SUBROGATION. In the event of any payment under this Policy, the Company shall be subrogated to all the Insured's rights of recovery therefor against any person or organization, and the Insured shall execute and deliver instruments and papers and do whatever else is necessary to secure such rights. The Insured shall do nothing after loss to prejudice such rights. PAIR, SET OR PARTS. It is understood and agreed that, in the event of loss of or damage to any article or articles which are a part of a set, the measure of loss of or damage to such article or articles shall be a reasonable and fair proportion of the total value of the set, giving consideration to the importance of said article or articles; but in no event shall such loss or damage be construed to mean total loss of set. In case of loss or injury to any part of the insured property consisting, when complete for sale or use, of several parts, this Company shall only be liable for the insured value of the part lost or damaged. Page 2 of 4 SUE AND LABOR. In case of loss or damage, it shall be lawful and necessary for the Insured, his/her or their factors, servants and assigns, to sue, labor, and travel for, in and about the defense, safeguard and recovery of the property insured hereunder, or any part thereof without prejudice to this insurance; nor shall the acts of the Insured or this Company, in recovering, saving and preserving the property insured in case of loss or damage, be considered a waiver or an acceptance of abandonment; to the charge whereof this Company will contribute according to the rate and quantity of the sum herein insured. SUIT. No suit, action or proceeding for the recovery of any claim under this Policy shall be sustainable in any court of law or equity unless the same be commenced within twelve (12) months next after discovery by the Insured of the occurrence which gives rise to the claim. Provided, however, that if by the laws of the State within which this Policy is issued such limitation is invalid, then any such claims shall be void unless such action, suit or proceeding be commenced within the shortest limit of time permitted by the laws of such State to be fixed herein. APPRAISAL. If the Insured and the Company fail to agree as to the amount of loss, each shall, on the written demand of either, made within sixty days after receipt of proof of loss by the Company, select a competent and disinterested appraiser, and the appraisal shall be made at a reasonable time and place. The appraisers shall first select a competent and disinterested umpire, and failing for fifteen days to agree upon such umpire, then, on the request of the Insured or the Company, such umpire shall be selected by a judge of a court of record in the state in which such appraisal is pending. The appraisers shall then appraise the loss, stating separately the actual cash value at the time of loss and the amount of loss, and failing to agree shall submit their differences to the umpire. An award in writing of any two shall determine the amount of loss. The Insured and the Company shall each pay his/her or its chosen appraiser and shall bear equally the other expenses of the appraisal and umpire. The Company shall not be held to have waived any of its rights by any act relating to appraisal. CANCELLATION. This Policy may be cancelled by the Insured by mailing to the Company written notice stating when thereafter such cancellation shall be effective. This Policy may be cancelled by the Company by mailing to the Insured at the address shown in this Policy or last known address written notice stating when no fewer than ten days thereafter such cancellation shall be effective. The mailing of notice as aforesaid shall be sufficient proof of notice, an the effective date of cancellation stated in the notice shall become the end of the policy period. Delivery of such written notice either by the Insured or by the Company shall be equivalent to mailing. If the Insured cancels, earned premiums shall be computed in accordance with the customary short rate table and procedure. If the Company cancels, earned premiums shall be computed pro rata. Premium adjustment may be made at the time cancellation is effected and, if not then made, shall be made as soon as practicable after cancellation becomes effective. The Company's check or the check of its representative mailed or - delivered as aforesaid shall be a sufficient tender of any refund of premium due to the Insured. Page 3 of 4 ST.PAUL FIRE AND MARINE INSURANCE COMPANY ONLY: Provisions Required by Law to be Stated in this Policy: - "This Policy is issued under and in irsuance of the laws of the State of Minnesota, relating to Guaranty Surplus and Special I deserve Funds. " Chapter 437, General Laws of 1909. In Witness Whereof, this Company has executed and attested these presents; but this Policy shall not be valid unless countersigned by a duly authorized Agent of the Company. Countersignature Date Countersigned At Agent Name of Insured Effective Date Policy Number COLORADO COUNTIES CASUALTY& 07/01/94 GF03400003 PROPERTY POOL 40502 Ed.1-80 Endorsement St.Paul Fire and Marine Insurance Co.1980 Page 4 of 4 C (7-94) COVERAGE SUMMARY flamed Insured: Colorado Counties Casualty & Property Pool 1. This policy covers Blanket Real, Personal Property, Contractors Equipment, Fine Arts, Glass, Valuable Papers, Data Processing Equipment and Media, Extra Expense, Builders Risks and Installations, Transit, and Vehicle Damage. 2. Limit of Liability The insurer(s) shall not be liable hereunder in any one loss, casualty or disaster for more than $50,000,000. per occurrence. For sublimits refer to page 1 of 8, paragraph III. 3. Each claim for loss or damage shall be adjusted separately and the Insurer's liability shall be limited to that amount excess of $150,000. Attached to and made part of policy number GF03400003 of the St.Paul Fire and Marine Insurance Company. „ ATE: 07 - 26 - 94 AGENT C y, Ct, gASiti CC (7-94) I. NAME OF INSURED It is agreed that the unqualified word "Insured" wherever used in this insurance includes not only the Named Insured but also - any official, trustee or employee of the Named Insured while acting within the scope of his duties as such, and any person, organization, trustee or estate to whom the Named Insured 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 Insured; II. TERRITORY This policy covers anywhere in the Continental United States of America and Canada. III. ULTIMATE NET LOSS In calculating the amount of Ultimate Net Loss, this insurance is deemed to have the following maximum sublimits: A. $50,000,000. in the aggregate annually as respects any Flood loss. B. $50,000,000. in the aggregate annually as respects any Earthquake loss. C. $ 1 ,000,000. newly acquired property, per location, values in excess of $1,000,000. are to be reported to this Company in sixty (60) days. D. $1,000,000. builders risks, renovations, repairs made by the Insured at any location (including new locations) within the territorial limits of the policy, any one occurrence. E. $ 500,000. at any unscheduled location, any one occurrence. IV. SERVICE ORGANIZATION This Insurance is issued to the Insured on the express condition that the Insured undertakes to utilize at all times the services of Aon Insurance Management Services, Inc. This Service shall perform the following duties: A. Discharge the Insured's obligation under the terms of this Agreement by administering a complete claims handling program. B. Maintain accurate records of all reported claims and details incident to loss and expense payments. C. 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. CC (7-94) 1 SECTION I - PROPERTY INSURANCE SECTION I - INSURING AGREEMENTS AGREEMENT A - BUILDING AND CONTENTS: Underwriters agree, subject to the limitations, terms and conditions of this Insurance, to indemnify the Insured for 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 Insured for loss or damage to Automobiles owned by the Insured or on which the Insured has an obligation to provide adequate insurance, wherever located, against Risks of Direct Physical Loss, including Collision of the Automobile with another object. SECTION I - DEFINITIONS 1. PROPERTY OF THE INSURED: The term "Insured's Property" shall mean All Real and Personal Property, including leasehold improvements or betterments which the Insured owns, property which the Insured 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 Insured 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 thereof. 5. VALUABLE PAPERS: The term Valuable Papers shall mean: Written, printed or otherwise inscribed documents and records, including books, maps, films, drawings, abstracts, deeds, mortgages and manuscripts, but does not mean money and securities, but includes additional costs to research or restore damaged documents, drawings or records. 6. ACCOUNTS RECEIVABLE: The term "Accounts Receivable" shall mean: a) All sums due the Insured from customers provided the Insured is unable to effect collection thereof as the result of covered loss or damage to records of accounts receivable; CC (7-94) 2 b) Interest charges on any loan to offset impaired collections pending repayment of such sums made uncollectible by such loss or damage: c) Collection expense in excess of normal collection caused and made necessary because of such loss or damage; d) Other expenses when reasonably incurred by the Insured in re-establishing records of accounts receivable following such loss and/or damage. The following special exclusions apply to Accounts Receivable Coverage; this policy does not insure against: 1) Loss due to bookkeeping, accounting or billing errors or omissions; 2) 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 Insured can prove, through evidence wholly apart therefrom, is due solely to a risk of loss to records of accounts receivable not otherwise excluded hereunder; 3. Loss due to alteration, falsification, manipulation, concealment, destruction or disposal of records of accounts receivable committed to conceal the wrongful giving, taking, obtaining or withholding of money, securities or other property but only to the extent of such wrongful giving, taking, obtaining or withholding. 7. OCCURRENCE: "Occurrence" means all covered loss, damage, or a sequence of losses or damage, casualties or disasters, arising from a single event or catastrophe. So far as loss involving in whole or in part, the perils of wind, (including hurricanes, tornadoes, cyclone), snow, rain, or hail is concerned a single event shall mean one single atmospheric disturbance during a continuous period of seventy-two (72) hours (not limited by the date on which coverage under this policy ceases). 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 mold. 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, delay or loss of markets. CC (7-94) 3 4. Breakdown of machinery and/or boiler explosion but not excluding loss resulting therefrom. This exclusion shall not apply as respects to EDP equipment and media. 5. Loss resulting from dampness of atmosphere or variation in temperature unless caused by the perils of Fire and Extended Coverage. This exclusion shall not be deemed to exclude loss resulting from freezing. 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 fire or explosion. 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 Insured or any of his employees. PROPERTY EXCLUDED FROM COVERAGE HEREUNDER: Animals, aircraft, standing timber, growing crops, currency, money, notes, securities, bridges, culverts, roadways, streets, walks, or paved surfaces, dams, docks, peirs and wharves. 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 Insured decides to replace destroyed or damaged property on another site, cost of such site is not included hereunder. CC (7-94) 4 It is a requirement that if the Insured does not repair, replace or rebuild the property within two years from the date of loss, this property shall be valued at ACV. B. (Automobile) - the actual cash value of the automobile at the time of loss. 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 (7%) percent of replacement cost. 5. APPRAISAL: In the event the Insured 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 umpire. The appraisers together shall obtain reconstruction estimates, and calculated 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 point 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 Underwriters 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. CC (7-94) 5 SECTION II - GENERAL CONDITIONS 1 . PREMIUM PROVISION: See Declarations Page. 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 Insured and to examine the Insured'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 Insured shall be acceptable to Underwriters in determining the amount of loss or damage covered hereunder. 5. DUE DILIGENCE CLAUSE: The Insured shall use due diligence and do and concur in doing all things reasonably practicable to avoid or diminish any loss of or damage to the property herein insured. 6. CANCELLATION: This Insurance may be canceled 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. 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. 7. CURRENCY: The premium and losses under this Insurance are payable in United States currency. Payment of premium shall be made to Aon Insurance Management Services, Inc. CC (7-94) 6 8. BANKRUPTCY AND INSOLVENCY: In the event of the bankruptcy or insolvency of the Insured or any entity comprising the Insured, the Underwriters shall not be relieved of the payment of any claims hereunder because of such bankruptcy or insolvency. 9. OTHER INSURANCE: If the Insured 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 collectable from such other insurance shall accrue in the aggregate loss fund of this Insurance. 10. 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. 11 . CLAIMS: The Insured shall immediately notify Underwriters through Aon Insurance Management Services, Inc. by registered mail, 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 Insured 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 Insured and Underwriters shall cooperate to the mutual advantage of both. 12. LOSS PAYMENTS: When it has been determined that Underwriters are liable under this Insurance, Underwriters shall thereafter promptly reimburse the Insured for all payment made in excess of the amounts stated in the Limits Agreement. All adjusted claims shall be paid or made good to the Insured within thirty days after their presentation to Aon Insurance Management Services, Inc. and acceptance by Underwriters of satisfactory proof of interest and loss. 13. APPEAL: In the event the Insured and Underwriters are unable to agree to the advisability of appealing a judgment, a disinterested attorney, mutually agreeable to the Underwriters and the Insured, 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 Insured and Underwriters. Fees of such retained attorney shall be borne equally by both parties for the services of rendering his recommendation only. The Insured's portion of such fee shall not accrue in the aggregate loss fund. CC (7-94) 7 14. 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 Insured; if not, the twenty-seven months shall begin upon notice to the Insured to such loss or claim. 15. SUBROGATION: The Underwriters shall be subrogated to all rights which the Insured may have against any person or other entity in respect to any claim or payment made under this Insurance, and the Insured shall execute all papers required by the Underwriters and shall cooperate with the Underwriters to secure Underwriter's rights. In case any reimbursement obtained or recovery made by the Insured 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 Insured's loss because of the application of the aggregate loss fund. 16. WAIVER OF SUBROGATION: This Insurance shall not be invalidated if the Insured 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. 17. CONFLICTING STATUTES: In the event that any provision of this Insurance is unenforceable by the Insured under the laws of any state or other jurisdiction wherein it is claimed that the Insured is liable for any injury covered hereby because of non-compliance with any statute thereof, then this policy shall be enforceable for the Insured with the same effect as if it complied with such statutes. 18. ASSIGNMENT: Assignment of interest under this Insurance shall not bind the Underwriters until the Underwriters' consent is endorsed hereon. CC (7-94) 8 19. CHANGES: By acceptance of this Insurance, the Insured agrees that it embodies all agreements existing between the Insured 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. 20. 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 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. 21 . FRAUDULENT CLAIMS: If the Insured 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. HEREON: 100% OF LIMITS AND PREMIUM ATTACHING TO AN FORMING PART OF POLICY NUMBER GF03400003, ST PAUL FIRE AND MARINE INSURANCE COMPANY. DATED: 07-01-94 ST. PAUL FIRE & MARINE INSURANCE CO. BY CC (7-94) 9 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 Insured or property held by the Insured in trust or on commission or on consignment for which the Insured may be held legally liable while in due course of transit 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 of glass or other fragile articles, marring, scratching, exposure to light, or change in color, texture or flavor, unless such loss is caused directly by fire or the combating thereof, lightning, windstorm, hail, explosion, strike, riot or civil commotion, aircraft, vehicles, breakage of pipes or apparatus, sprinkler leakage, vandalism and malicious mischief, theft or attempted theft. 2. Loss of use, delay or loss of 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, mold, dampness of atmosphere, smog or extremes of temperature. 4. Loss or damage caused by or resulting from misappropriation, conversion, infidelity or any dishonest act on the part of the Insured or other party of interest, his or their employees or agents to 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 or public authority. 6. Loss or damage arising directly or indirectly from nuclear reaction, nuclear radiation or radioactive contamination however such 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 radioactive contamination, any loss or 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, CC (7-94) 1 of 2 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 separately and from the amount of each such adjusted loss the sum(s) stated shall be deducted. PROPERTY EXCLUDED This Extension does not cover: 1 . a. Aircraft, watercraft, vehicles designed for highway use, animals, jewelry, precious stones and furs or garments trimmed with fur. b. Currency, money, notes, securities, deeds, and evidences of debt 2. Property in due course of ocean marine transit. 3. Shipments by mail after delivery into the custody of the Post Office Department. 4. Samples while in the care, custody or control of salesmen. CONDITIONS 1 . The Insured 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 Insured 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 Insured. B. Unsold property at the actual cash value of the property at the time any loss or damage occurs with property 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, clauses and conditions as heretofore. ENDORSEMENT attaching to and forming part of Policy Number GF03400003 in the name of Colorado Counties, Casualty and Property Pool. Effective date of this endorsement is July 1 , 1994 St.Paul Fire & Marine Insurance Company Endorsement Number 1 CC (7-94) 2 of 2 EXTRA EXPENSE 40/80/100% OF LIMIT It is agreed that if the property insured by Insuring Agreement A of Section I 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 of coverage shall not operate to increase the Underwriters limits of liability hereunder. Underwriters shall be liable for no greater percentage of the amount 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 Insured's business, over and above the total cost that would normally have been incurred to conduct the business during the same period had no damage or destruction occurred. b. Normal: The term "Normal" wherever used herein shall mean; the 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 Insured'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 Insured 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. CC (7-94) 1 of 2 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; 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 damage 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, ENDORSEMENT attaching to and forming part of Policy Number GF03400003 in the name of Colorado Counties, Casualty and Property Pool. Effective date of this endorsement is July 1, 1994 St.Paul Fire & Marine Insurance Company Endorsement Number 2 CC (7-94) 2 of 2 CANCELLATION: This Insurance may be cancelled as of any anniversary date of either of the parties upon written notice to the other party stating when, not less than ninety (90) days thereafter cancellation shall be effected. If this Insurance shall be cancelled by the Insured, the Underwriters shall retain the customary short rate proportion of the premium hereon, except that if this Insurance is on an adjustable basis the Underwriters shall receive the earned premium hereon or the customary short rate proportion of any minimum premium stipulated herein whichever is the greater. If this Insurance shall be cancelled by or on behalf of the Underwriters, the Underwriters shall retain the pro rata proportion of the premium hereon; except that if this Insurance is on an adjustable basis, the Underwriters shall receive the earned premium hereon or the pro rata proportion of any minimum premium stipulated herein whichever is the greater. Payment or tender of any unearned premium by the Underwriters shall not be a condition precedent to the effectiveness of Cancellation by such payment shall be made as soon as practicable. 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. Subject otherwise to all terms, clauses and conditions as heretofore. ENDORSEMENT attaching to and forming part of Policy Number GF03400003 in the name of Colorado Counties, Casualty and Property Pool. Effective date of this Endorsement is July 1 , 1994 St. Paul Fire & Marine Insurance Company Endorsement Number 3 CC (7-94) POLLUTION EXCLUSION ENDORSEMENT In consideration of the premium charged, it is understood that the following exclusion is added to Section I, Exclusions: Pollution caused directly or indirectly by the release, discharge, dispersal, seepage, migration, or escape of pollutants or contaminants unless the release, discharge, dispersal, seepage, migration, or escape is caused by fire, lightning, explosion, windstorm, hail, leakage from fire protection equipment, smoke, vehicles and aircraft, riot, civil commotion, vandalism, sinkhole collapse, volcanic action, falling objects, weight of snow, ice or sleet, or water damage. However, this policy does not cover the costs arising out of the enforcement of any law, ordinance, regulation or order by civil or judicial authority requiring the removal, disposal, replacement, cleanup, restoration or containment of insured property or for costs to monitor or test for the existence or effects of pollutants. This exclusion applies regardless of any other cause or event that contributes concurrently or in any sequence to the loss. All other terms and conditions remain unchanged. Subject otherwise to all terms, clauses and conditions as heretofore. ENDORSEMENT attaching to and forming part of Policy Number GF03400003 in the name of Colorado Counties, Casualty and Property Pool. Effective date of this endorsement is July 1, 1994 St.Paul Fire & Marine Insurance Company Endorsement Number 4 CC(7-94) EXTENSION OF COVERAGE ENDORSEMENT Pollution Cleanup and Removal In consideration of the premium charge, the following extension of coverage is added. Notwithstanding any conditions or terms contained elsewhere in this policy, coverage is extended for a limit of $25,000 any one occurrence to cover the cost to clean up and remove pollutants that are: 1 . in the land or water at an insured location provided the discharge, seepage, migration, release, escape or dispersal is due to fire, lightning, explosion, windstorm, hail, leakage from fire protection equipment, smoke, vehicles and aircraft, riot, civil commotion, vandalism, sinkhole collapse, volcanic action, falling objects, weight of snow, ice or sleet, or water damage. For example: a fire at an insured location causes chemicals to run onto the ground and into a nearby river. This policy will pay to clean up the pollution that is in the land and water at the insured premises up to the limit of liability of this extension. This policy will not pay to clean up land or water away from an insured premises; 2. in the land or water away from an insured premises but only when pollution or contamination is caused by the collision, upset or overturn of a transporting vehicle which is owned, operated, rented, leased or borrowed by the Insured. Coverage is provided under this extension only if the following conditions are met: a. the cause of loss occurs during the policy period; b. the pollution must occur at an insured location except as provided for in clause 2. above. c. the clean-up and removal costs must be incurred and reported to the company within one hundred eighty (180) days of either the date of direct physical loss or damage or the end of the policy period, whichever is earlier. Liability for loss under this extension shall not exceed $25,000 in any one occurrence or $25,000 in the aggregate for all such losses in any one policy year. All other terms and conditions remain unchanged. Subject otherwise to all terms, clauses and conditions as heretofore. St.Paul Fire & Marine Insurance Company ENDORSEMENT attaching to and forming part of Policy Number GF03400003 in the name of Colorado Counties, Casualty and Property Pool. Effective date of this endorsement is July 1 , 1994 St.Paul Fire & Marine Insurance Company CC (7-94) Endorsement Number 5 m. One Tower Square, Hartford, Connecticut 06183 TheTraveler'sj COMMON POLICY DECLARATIONS ISSUE DATE : 06/23/94 POLICY NUMBER: M5J-660-920J5922-TIL-94 1 . NAMED INSURED AND MAILING ADDRESS : COLORADO COUNTIES CASUALTY & PROPERTY POOL C/0 COUNTY TECHNICAL SERVICES 1177 GRANT STREET, SUITE 200 DENVER, CO 80203 2. POLICY PERIOD: From 07/01 /94 to 07/01 /95 12 :01 A.M. Standard Time at your mailing address . 3 . LOCATIONS Premises Bldg. Loc. No. No. Occupancy Address 1 1 COUNTIES SEE SPECIAL LOCATION SCHEDULE DENVER, CO 80203 4. COVERAGE PARTS FORMING PART OF THIS POLICY AND INSURING COMPANIES : BOILER AND MACHINERY COV PART DECLARATIONS BM TO 01 11 85 TIL 5. NUMBERS OF INTERLINE FORMS AND ENDORSEMENTS FORMING A PART OF THIS POLICY: SEE IL 78 01 07 94 6. SUPPLEMENTAL POLICIES: Each of the following is a separate policy containing its complete provisions : Policy Policy No. Insuring Company *AMS BINDER BILLED # 7 . PREMIUM SUMMARY: Provisional Premium *$ 65,327 Due at Inception $ Due at Each $ '555 NAME AND ADDRESS OF AGENT OR BROKER : COUNTERSIGNED BY: c4= ROLLINS HUDIG HALL OF UT (EC815) \ ) _ 2180 SOUTH 1300 EAST SUITE 500 SALT LAKE , UT 84152-625 Authprized Representative DATE\: ,aqc,4- MEE IL TO 02 11 89 PAGE 1 OF 1 OFFICE : SALT LAKE CITY COMMON POLICY CONDITIONS All Coverage Parts included in this policy are subject to the following conditions: A. CANCELLATION 1. The first Named Insured shown in the Decla- 2. Give you reports on the conditions we find; rations may cancel this policy by mailing or and delivering to us advance written notice of 3. Recommend changes. cancellation. Any inspections, surveys, reports or recom- 2. We may cancel this policy or any Coverage mendations relate only to insurability and the Part by mailing or delivering to the first premiums to be charged. We do not make Named Insured written notice of cancellation safety inspections. We do not undertake to at least: perform the duty of any person or organize- a. 10 days before the effective date of can- tion to provide for the health or safety of cellation if we cancel for nonpayment of workers or the public. And we do not warrant premium; or that conditions: b. 30 days before the effective date of can- 1. Are safe or healthful; or cellation if we cancel for any other 2. Comply with laws, regulations, codes or reason. standards. 3. We will mail or deliver our notice to the first This condition applies not only to us, but Named Insured's last mailing address known also to any rating, advisory, rate service or to us. similar organization which makes insurance 4. Notice of cancellation will state the effective inspections, surveys, reports or recommen- date of cancellation. If the policy is can- dations. celled, that date will become the end of the policy period. If a Coverage Part is can- E. PREMIUMS celled, that date will become the end of the 1. The first Named Insured shown In the Decla- policy period as respects that Coverage Part rations: only. a. Is responsible for the payment of all 5. If this policy or any Coverage Part is can- premiums; and pre- celled, we will send the first Named Insured b. Will be the payee for any return any premium refund due. If we cancel, the computemium w pay. refund will be pro rata. If the first Named 2. accordanceW all premiums for this policy in Insured cancels, the refund may be less than with our rules, rates, rating pro rata. The cancellation will be effective plans, premiums and minimum premiums. even if we have not made or offered a refund. The premium shown in the Declarations was m computed based on rates and rules in effect 6. If notice is mailed, proof of mailing will be N= at the time the policy was issued. On each sufficient proof of notice. renewal continuation or anniversary of the B. CHANGES effective date of this policy, we will compute z= This policy contains all the agreements between the premium in accordance with our rates you and us concerning the insurance afforded. and rules then in effect. The first Named Insured shown in the Declar- F. TRANSFER OF YOUR RIGHTS AND DUTIES ations is authorized to make changes in the UNDER THIS POLICY terms of this policy with our consent. This pol- Your rights and duties under this policy may not icy's terms can be amended or waived only by be transferred without our written consent except 0— endorsement issued by us as part of this policy. in the case of death of an individual named C. EXAMINATION OF YOUR BOOKS AND RE- insured. CORDS If you die, your rights and duties will be We may examine and audit your books and transferred to your legal representative but only records as they relate to this policy at any time while acting within the scope of duties as your during the policy period and up to three years legal representative. Until your legal represen- afterward. tative is appointed, anyone having proper temporary custody of your property will have D. INSPECTIONS AND SURVEYS rights and duties but only with respect to that We have the right but are not obligated to: property. 1. Make inspections and surveys at any time; IL TO 01 11 89 Includes copyrighted material of Insurance Services Office, Page 1 of 2 with its permission. Copyright, Insurance Services Office, 1989 This policy consists of the Common Policy Declara- company Indicated as insuring company in the Com- tions and the Coverage Parts and endorsements mon Policy Declarations that Coverage Part.abbreviation of its name opposite listed in that declarations form. In return for payment of the premium, The Travelers The companies listed below (each a stock company) agrees with the Named Insured to provide the in- have executed this policy, but it is valid only if surance afforded by a Coverage Part forming part of countersigned on the Common Policy Declarations this policy. That insurance will be provided by the by our authorized representative. The Travelers Indemnity Company (IND) The Phoenix Insurance Company (NIX) The Charter Oak Fire Insurance Company (COF) The Travelers Indemnity Company of Illinois (TIL) The Travelers Indemnity Company of Rhode Island (TRI) The Travelers Indemnity Company of America (TIA) Secretary President ( / The Travelers Insurance Company (INS) *4Q-q t3/4„ Secretary President IL TO 01 11 89 Page2of2 TheTravelerssi POLICY NUMBER: M5J-660-920J5922-TIL-94 EFFECTIVE DATE : 07/01 /94 ISSUE DATE : 06/23/94 LISTING OF FORMS, ENDORSEMENT & SCHEDULE NUMBERS THIS LISTING SHOWS THE NUMBER OF INTERLINE FORMS, ENDORSEMENTS AND OTHER SCHEDULES . IL TO 01 11 89 Common Policy Conditions IL 01 69 02 93 CO Changes - Concealment , Misrepresentation, Fraud IL 02 28 10 89 Colorado Changes - Cancellation and Nonrenewal oC mnm SYMBOL NO. IL TS 01 07 94 OFFICE : SALT LAKE CITY 187 PRODUCER NAME : ROLLINS HUDIG HALL OF UT EC815 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. COLORADO CHANGES - CONCEALMENT, MISREPRESENTATION OR FRAUD This endorsement modifies insurance provided under the following: BOILER AND MACHINERY COVERAGE PART BUSINESSOWNERS POLICY COMMERCIAL AUTO COVERAGE PART COMMERCIAL INLAND MARINE COVERAGE PART COMMERCIAL PROPERTY COVERAGE PART FARM COVERAGE PART-FARM PROPERTY COVERAGE FORM FARM COVERAGE PART-MOBILE AGRICULTURAL MACHINERY AND EQUIPMENT COVERAGE FORM FARM COVERAGE PART-LIVESTOCK COVERAGE FORM The CONCEALMENT, MISREPRESENTATION OR FRAUD Condition is replaced by the following: CONCEALMENT, MISREPRESENTATION OR FRAUD We will not pay for any loss or damage in any case of: 1. Concealment or misrepresentation of a material fact; or 2. Fraud committed by you or any other insured ("insured") at any time and relating to coverage under this policy. coic— O= IL 01 69 02 93 Copyright, Insurance Services Office, Inc., 1992 Page 1 of 1 Copyright, ISO Commercial Risk Services, Inc., 1992 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. COLORADO CHANGES-CANCELLATION AND NONRENEWAL This endorsement modifies insurance provided under the following: BOILER AND MACHINERY COVERAGE PART BUSINESSOWNERS POLICY COMMERCIAL AUTO COVERAGE PART COMMERCIAL CRIME COVERAGE PART COMMERCIAL GENERAL LIABILITY COVERAGE PART COMMERCIAL PROPERTY COVERAGE PART COMMERCIAL INLAND MARINE COVERAGE PART FARM COVERAGE PART LIQUOR LIABILITY COVERAGE PART PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART A. Paragraph 2. of the CANCELLATION Common (1) Nonpayment of premium; Policy Condition Is replaced by the following: (2) A false statement knowingly made by 2. If this policy has been in effect for less than the Insured on the application for in- 60 days, we may cancel this policy by mail- surance; or Ing or delivering to the first Named Insured (3) A substantial change in the exposure written notice of cancellation at least: or risk other than that indicated in a. 10 days before the effective date of can- the application and underwritten as cellation if we cancel for nonpayment of of the effective date of the policy un- premium; or less the first Named Insured has notified us of the change and we ac- b. 30 days before the effective date of can- cellation if we cancel for any other reason. C. The following is added and supersedes any other B. The following is added to the CANCELLATION provision to the contrary: Common Policy Condition: NONRENEWAL 7. Cancellation of Policies in Effect for 60 Days If we decide not to renew this policy, we will mail or More through first-class mail to the first Named a. If this policy has been in effect for 60 Insured shown in the Declarations written notice days or more, or is a renewal of a policy of the nonrenewal at least 45 days before the expiration date or its anniversary date if it is a we issued, we may cancel this policy by mailing through first-class mail to the first policy written for a term of more than one year or Named Insured written notice of cancel- lation: If notice is mailed, proof of mailing will be sufficient proof of notice. (1) Including the actual reason, at least 10 days before the effective date of D. The following Condition is added: cancellation, if we cancel for nonpay- INCREASE IN PREMIUM OR DECREASE IN ment of premium; or COVERAGE (2) At least 45 days before the effective We will not increase the premium unilaterally or date of cancellation if we cancel for decrease the coverage benefits on renewal of any other reason. this policy unless we mall through first-class mail We may only cancel this policy based on written notice of our intention, Including the one or more of the following reasons: actual reason, to the first Named Insured's last IL 02 28 10 89 Copyright, Insurance Services Office, Inc., 1989 Page 1 of 2 Copyright, ISO Commercial Risk Services, Inc., 1989 mailing address known to us, at least 45 days 3. A substantial change in the exposure or risk before the effective date. other than that indicated in the application and underwritten as of the effective date of Any decrease In coverage during the policy term must the policy unless the first Named Insured has be based on one or more of the following notified us of the change and we accept reasons: such change. 7. Nonpayment of premium; If notice is mailed, proof of mailing will be 2. A false statement knowingly made by the in- sufficient proof of notice. sured on the application for insurance; or LL Page 2 of 2 Copyright, Insurance Services Office, Inc., 1989 IL 02 28 10 89 Copyright, ISO Commercial Risk Services, Inc., 1989 ENERGYMAX COMPREHENSIVE EQUIPMENT COVERAGE FORM TABLE OF CONTENTS Declarations and Endorsements that may also be attached to your policy are not included in this Table of Contents. ITEM PAGE NUMBER COVERAGE 1 Covered Property 1 Covered Cause of Loss 1 Defense and Supplementary Payments 1 COVERAGE EXTENSIONS 1 Expediting Expenses 1 Business Income 1 Extended Business Income 2 Extra Expense 2 Spoilage 2 Off Premises Service Interruption 2 Ammonia Contamination 3 Water Damage 3 Hazardous Substances 3 Ordinance or Law (Including Demolition and Increase Cost of Construction) 3 "Media" 3 Brands and Labels 3 Newly Acquired Locations 3 Error in Description 4 EXCLUSIONS 4 Ordinance or Law 4 Nuclear Hazard 4 War and Military Action 4 Earth Movement 4 Other Exclusions 4 LIMITS OF INSURANCE 5 Limit Per Accident 6 '= Coverage Extension Limits 6 DEDUCTIBLE 6 Damage to Covered Property 6 Business Income 6 Extra Expense 6 Spoilage 7 Off Premises Service Interruption 7 Ammonia Contamination 7 BM T1 52 01 94 Page 1 of 2 ENERGYMAX COMPREHENSIVE EQUIPMENT COVERAGE FORM TABLE OF CONTENTS (Continued) ITEM PAGE NUMBER LOSS CONDITIONS 7 Abandonment 7 Appraisal 7 Duties In the Event of Loss or Damage 7 Reducing Your Loss 8 Loss Payment 8 Valuation 8 Spoilage Coverage Valuation 9 "Media"Valuation 9 Business Income Report of Values 9 Business Income Coinsurance 9 Conditional Suspension of Coinsurance 10 Joint Loss 10 ADDITIONAL CONDITIONS 11 Cancellation 11 Concealment, Misrepresentation and Fraud 11 Legal Action Against Us 11 Adjustment of Premium 11 Liberalization 11 Other Insurance 11 Policy Period, Coverage Territory 12 Transfer of Rights of Recovery Against Others to Us 12 Additional Insured 12 12 Bankruptcy 12 Suspension Mortgage Holders 12 DEFINITIONS 13 Page 2 of 2 BM T1 52 01 94 w.. One Tower Square, Hartford, Connecticut 06183 TheTravelersj BOILER AND MACHINERY POLICY NUMBER: M5J-660-920J5922-TIL-94 COVERAGE PART DECLARATIONS ISSUE DATE: 06-23-94 COMPREHENSIVE EQUIPMENT COVERAGE EFFECTIVE DATE: Same as policy unless otherwise specified: COVERAGES, LIMITS OF INSURANCE AND OPTIONS- Insurance applies only to a coverage for which a limit or"Included" is shown. An "X' indicates an applicable coverage option. 1. THESE DECLARATION APPLY TO ALL LOCATIONS COVERED BY THIS POLICY EXCEPTIONS: 2. DEFINITION OF "OBJECT": INCLUDES PRODUCTION MACHINES: X EXCLUDES PRODUCTION MACHINES: 3. COVERAGES AND LIMITS: COVERAGES LIMITS Limit Per Accident: $100,000,000 Expediting Expenses: POLICY LIMIT Business Income: POLICY LIMIT Extra Expense: POLICY LIMIT Spoilage: $25,000 Off Premises Service Interruption: POLICY LIMIT Ammonia Contamination: POLICY LIMIT Water Damage: POLICY LIMIT Hazardous Substances: $25,000 Ordinance or Law: $1 ,000,000 "Media": $25,000 Brands and Labels: POLICY LIMIT Newly Acquired Locations: POLICY LIMIT Error in Description: POLICY LIMIT 4. DEDUCTIBLES Damage to Covered Property: $5,000 Business Income: 12 HOURS Extra Expense: COMBINED WITH BI Spoilage: $5,000 Off Premises Service Interruption: COMBINED WITH BI Ammonia Contamination: COMBINED WITH PD LL= 5. OTHER CONDITIONS Notice of Cancellation: 60 Days Newly Acquired Locations: Up to a Maximum of 365 Days 6. NUMBERS OF FORMS, SCHEDULES AND ENDORSEMENTS FORMING PART OF THIS COVERAGE PART ARE ATTACHED AS A SEPARATE LISTING. PRODUCER: ROLLINS HUDIG HALL OF UT EC815 OFFICE: SALT LAKE CITY 187 BMT0011185 rt One Tower Square, Hartford, Connecticut 06183 The'& saveler'j BOILER AND MACHINERY COVERAGE PART DECLARATIONS POLICY NUMBER:M5J-660-920J5922-TIL-94 LISTING OF FORMS, SCHEDULES & ENDORSEMENT NUMBERS THIS LISTING SHOWS THE NUMBERS OF FORMS, SCHEDULES AND ENDORSEMENTS WHICH FORM PART OF THE COVERAGE PART SHOWN ABOVE . BM T1 50 01 93 COMP EQUIPMENT COVERAGE FORM BM T1 52 01 94 TABLE OF CONTENTS BM T8 00 07 94 GENERAL PURPOSE ENDORSEMENT BM T8 69 04 91 SPECIAL LOCATION SCHEDULE gE- M real nr o= ma a aiwz aa- m BM TO 01 11 85 PRODUCER ROLLINS HUDIG HALL OF UT EC815 OFFICE SALT LAKE CITY 187 BOILER AND MACHINERY COMPREHENSIVE EQUIPMENT COVERAGE FORM Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and what is and is not covered. Throughout this policy, the words "you" and "your' refer to the Named Insured shown in the Declarations. The words 'We," "us"and "our" refer to the Company identified on the Declarations which is providing this insurance. Other words and phrases that appear in quotation marks have special meaning. Refer to Section G—DEFINI- TIONS. A. COVERAGE "suit"we defend; We will pay for direct damage to Covered (5) Pre-judgment interest awarded a- Property caused by a Covered Cause of Loss. gainst you on that part of the judg- 1. Covered Property ment we pay. If we make an offer to pay the applicable limits, we will not Covered Property, as used in this Coverage Part, Pr means any property that: pay any pre-judgment interest based on that period of time after the offer; a. You own; or and b. Is in your care, custody or control and (6) All interest on the full amount of any for which you are liable judgment that accrues after entry of while at a location described in the Declara- the judgment and before we have tions. paid, offered to pay, or deposited In 2. Covered Cause of Loss court the part of the judgment that is within the applicable limits. A Covered Cause of Loss is an "accident" to 4. Coverage Extensions an "object." You may extend the insurance provided by 3. Defense and Supplementary Payments this Coverage Part as follows: a. If a claim or "suit" is brought against you a. Expediting Expenses alleging that you are liable for damage to property of another in your care, custody With respect to your damaged Covered or control, that was directly caused by Property, we will pay the reasonable an "accident" to an "object," we will extra cost to: either: (1) Make temporary repairs; and (1) Settle the claim or"suit," or (2) Expedite permanent repairs or re- (2) Defend you against the claim or placement. "suit" but keep for ourselves the right b. Business Income to settle It at any point. (1) We will pay your actual loss of "busi- b. We will pay, with respect to any claim or ness income" from a total or partial any"suit"we defend: interruption of business caused sole- (1) All expenses we Incur; ly by an "accident" to an "object" as described in (3) below. (2) The cost of bonds to release attach- ments. We do not have to furnish (2) We will also pay any necessary ex- these bonds; penses you incur to reduce the (3) All reasonable expenses incurred by amount of loss under this Coverage Extension. We will pay for such ex- you at our request to assist us in the penses to the extent that they do not investigation or defense of the claim exceed the amount of loss that other- or "suit," including actual loss of wise would have been payable under earnings up to $250 a day because this Coverage Extension. of time off from work; (4) (3) The "object" must either be Covered All costs taxed against you in any Property or be property of others BM T1 50 01 93 Page 1 of 15 BOILER AND MACHINERY that is: (3) The "accident" must occur during the Policy Period, but expiration of the (a) located on or within 500 feet of a policy does not limit our liability location Insured under this Coy- under this coverage. erage Part; and e. Spoilage (b) Used to supply electrical power, communications services, air con- (1) We will pay for your loss of perish- ditioning, heating, gas, water or able goods due to spoilage resulting steam to the described premises. from lack of power, light, heat, steam or refrigeration caused solely by an (4) The "accident" must occur during the "accident"to an "object" as described Policy Period, but expiration of the in (3) below. policy does not limit our liability under this coverage. (2) We will also pay any necessary ex- penses you incur to reduce the c. Extended Business Income amount of loss under this Coverage We will pay your actual loss of "business Extension. We will pay for such ex- income" from a total or partial interrup- penses to the extent that they do not tion of business caused solely by an "ac- exceed the amount of loss that other- cident" to an "object" and incurred wise would have been payable under during the period that: this Coverage Extension. (1) Begins on the date property is ac- (3) The "object' must either be Covered tually repaired, rebuilt or replaced Property or be property of others and operations are resumed; and that is: (2) Ends on the earlier of: (a) located on or within 500 feet of a (a) The date you could restore your location Insured under this Cov- operations with reasonable speed, erage Part; and to the condition that would have (b) Used to supply electrical power, existed if no direct physical loss or communications services, air con- damage had occurred; or ditioning, heating, gas, water or (b) Unless otherwise stated in the steam to the described premises. Declarations, 30 consecutive days (4) The "accident' must occur during the after the date determined in (1) Policy Period, but expiration of the above. policy does not limit our liability d. Extra Expense under this coverage. (1) We will pay the reasonable "extra ex- f. Off Premises Service Interruption pense" to operate your business (1) You may extend the insurance during a total or partial interruption provided by the Coverage Exten- of business caused solely by an "ac- sions—Business Income, Extra Ex- cident" to an "object" as described in pense and Spoilage to loss caused (2) below. solely by an "accident" to an "object" (2) The "object' must either be Covered as described in (2) below. Property or be property of others (2) The"object" must be: that is: (a) Located more than 500 feet from a (a) located on or within 500 feet of a location insured under this location insured under this Coy- Coverage Part; and erage Part; and (b) Used to supply electrical power, (b) Used to supply electrical power, communications services, air con- communications services, air con- ditioning, heating, gas, water or ditioning, heating, gas, water or steam to the described premises. steam to the described premises. (3) The "accident" must occur during the Page 2 of 15 BM T1 50 01 93 BOILER AND MACHINERY Policy Period, but expiration of the enforcement of building, zoning or policy does not limit our liability land use ordinance or law. If the under this coverage. property is repaired or rebuilt, it g. Ammonia Contamination must be Intended for similar use or occupancy as the current property, We will pay for direct damage to Covered unless otherwise required by zoning Property contaminated by ammonia as a or land use ordinance or law. result of an "accident to an "object." (3) The cost to demolish and clear the h. Water Damage site of undamaged parts of the prop- We will pay for direct damage to Covered erty caused by enforcement of the Property by water as a result of an "acci- building, zoning, or land use ordi- dent" to an "object" that is part of an air nance or law. conditioning system. This extension of coverage does not i. Hazardous Substances apply to any increase in loss due to a We will pay for direct damage to build- substance declared to be hazardous to ings and personal property that are health by a governmental agency. Covered Property and are contaminated We will not pay for Increased construe- by a Hazardous Substance as a result of tion costs until the property is actually an "accident"to an "object." repaired or replaced. If applicable, we will also pay for loss k. "Media" under the Coverage Extensions—Busi- We will pay for "media" directly damaged ness Income and Extra Expense caused by an "accident"to an "object." by such contamination. I. Brands and Labels As used above, Hazardous Substance shall mean any substance other than If branded or labeled merchandise that is ammonia that has been declared to be Covered Property is damaged by an "ac- hazardous to health by a governmental cident" to an "object," but retains a sal- agency. vage value, you may, at your expense: j. Ordinance or Law (Including Demoli- (1) Stamp the word SALVAGE on the tion and Increased Cost of Construc- merchandise or its containers if the ^= tion) stamp will not physically damage the — merchandise; or The following applies despite the opera- (2) Remove the brands or labels, if tion of the Ordinance or Law Exclusion. doing so will not physically damage If an "accident" to an "object" damages a the merchandise. You must re-label building that is Covered Property, we will the merchandise or its containers to pay: comply with the law. (1) For loss or damage caused by enfor- We will pay for any reduction in value of cement of any ordinance or law that: „,---a.-- the salvage merchandise resulting from (a) Requires the demolition of parts of either of these two actions. the same property not damaged m. Newly Acquired Locations by the "accident"; You may extend the insurance provided (b) Regulates the construction or by this Coverage Part to a newly ac- repair of buildings, or establishes quired location that you have purchased zoning or land use requirements or leased. This automatic coverage at the described premises; and begins at the time g' you acquire the (c) Is in force at the time of the "acci- property and is subject to the following dent." conditions: (2) The increased cost to repair, rebuild (1) You agree to pay an additional or construct the property caused by premium as determined by us. Such BM T1 50 01 93 Page 3 of 15 BOILER AND MACHINERY additional premium will be computed b. Nuclear Hazard from the date of acquisition. Loss caused by or resulting from nuclear (2) Insurance under this Coverage Ex- reaction or radiation, or radioactive con- tension for each newly acquired tamination, however caused. location will end when any of the fol- c. War and Military Action lowing first occurs: (1) War, including undeclared or civil (a) This Policy expires; war; (b)The number of days specified in (2) Warlike action by a military force, in- the Declarations for this coverage cluding action in hindering or expire after you acquire the loca- defending against an actual or ex- tion; pected attack, by any government, (c) You report the location to us; or sovereign or other authority using (d)The location is more specifically military personnel or other agents; or insured. (3) Insurrection, rebellion, revolution, u- (3) Insurance under this Coverage Part surged power or action taken by for such locations will be subject to governmental authority In hindering the same conditions, exclusions and or defending against any of these. limitations as other Insured locations. d. Earth Movement If deductibles vary by location, the Earth movement, including but not highest deductibles will apply. limited to earthquake, mine subsidence, n. Error in Description landslide, mudslide or volcanic eruption. We will pay your loss covered by this 2. We will not pay for loss or damage caused Coverage Part if such loss is otherwise by or resulting from any of the following: not payable solely because of any unin- a. An explosion. However, we will pay for tentional error or omission in the descrip- loss caused by or resulting from an ex- tion of a location as insured under this plosion of an "object" of a kind described Coverage Part. below: You agree to give us prompt notice of Explosion of any: any correction or addition to the descrip- tion of a location insured under this (1) Steam boiler; Coverage Part. (2) Electric steam generator; B. EXCLUSIONS (3) Steam piping; 1. We will not pay for loss or damage caused (4) Steam turbine; directly or indirectly by any of the following. (5) Steam engine; Such loss or damage Is excluded regardless of any other cause or event that contributes (6) Gas turbine; or concurrently or in any sequence to the loss. (7) Moving or rotating machinery when a. Ordinance or Law such explosion is caused by centri- fugal force or mechanical break- Any increase in loss caused by or result- down; ing from enforcement of any ordinance, law, regulation, rule or ruling regulating b. Fire or explosion that occurs at the same or restricting repair, replacement, altera- time as an "accident" or that ensues from tion, use, operation, construction or in- an "accident." With respect to any electri- stallation, except as provided under the cal equipment forming a part of an "ob- Coverage Extensions—Ordinance or Law ject,"this exclusion is changed to read: (Including Demolition and Increased Fire or explosion outside the "object"that Cost of Construction) and Hazardous occurs at the same time as an "accident" Substances. or ensues from an "accident." c. Explosion of gas or unconsumed fuel Page 4 of 15 BM T1 50 01 93 BOILER AND MACHINERY -. within the furnace of any boiler or fired a. The interruption of business that would vessel or within the gas passages from not or could not have been carried on if that furnace to the atmosphere; the "accident" had not occurred; d. An "accident" that is the direct or indirect b. Your failure to use due diligence and dis- result of an explosion or fire; patch and all reasonable means to e. An "accident" that is the direct or indirect resume business at the described result of the following, if such loss is premises; covered by another policy of insurance c. That part of any loss or expense that is in force at the time of the loss: due solely to the suspension, lapse or (1) Lightning; cancellation of a contract following an (2) Wind, Hail, Weight of Snow, Ice or "accident" extending beyond the time Riot,ail Civil Weight of Snow, aV or business could have resumed if the con- Sleet, tract had not lapsed, been suspended or dalism, Vehicles, Falling Objects, Air- cancelled; craft, Smoke, Collapse, Water Damage, Rising Water or Flood; d. Delay In rebuilding, repairing or replac- ing the property or resuming operations (3) Freeze arising from weather condi- due to Interference at the location of the tions; rebuilding, repair or replacement by f. Water or other means used to extinguish strikers or other persons; a fire, even when such an attempt is un- e. Delay in resuming operations due to the successful; need to reconstruct or relnput data or g. Lack of power, light, heat, steam or programs on "media"; or refrigeration, except as provided in the f. Any continuing loss extending beyond Coverage Extensions—Business Income, the date the damaged property is Extra Expense, Off Premises Service In- repaired or replaced, except as provided terruption and Spoilage; in the Coverage Extension—Extended h. Damage to property contaminated by Business Income. Ammonia, except as provided in the 4. With respect to the Coverage Extension— _ Coverage Extension—Ammonia Contam- Spoilage, we will not pay for loss or damage ination; as a result of your failure to use ail i. Damage to property by water as a result reasonable means to protect the perishable .,= of an "accident" to an an "object" that is goods from damage following an "accident." part of an air conditioning system, ex- 5. With respect to the Coverage Extension—Off cept as provided In the Coverage Exten- Premises Service Interruption, we will not Sion—Water Damage; pay for loss caused by or resulting from: j. Loss to "media," however caused, except a. An "accident" caused by Lightning, Wind, as provided in the Coverage Extension— Hail, Weight of Snow, Ice or Sleet, Riot, "Media"; Civil Commotion, Vandalism, Vehicles, k. Any of the following tests: Falling Objects, Aircraft, Smoke, Col- - (1) A hydrostatic, pneumatic or gas lapse, Water Damage, Rising Water or pressure test of any boiler, fired ves- Flood; sel or electrical steam generator; or b. Any interruption of service lasting less (2) An insulation breakdown test of any than 8 hours; or type of electrical or electronic "ob- c. A deliberate act or acts by a supplying ject." utility to shed load to maintain system 3. With respect to the Coverage Extensions— integrity. Business Income, Extra Expense and Off C. LIMITS OF INSURANCE Premises Service Interruption, we will not Any payment made under this Coverage Part will pay for: not be increased if more than one insured is BM T1 50 01 93 Page 5 of 15 BOILER AND MACHINERY shown in the Declarations. shown in the Declarations, we will not be li- able for any loss of "business Income" occur- 1. Limit Per Accident ring during the specified number of hours The most we will pay for loss and expense immediately following the "accident." arising from any "one accident" is the If a Business Income dollar deductible Is amount shown as the Limit Per Accident in shown in the Declarations, we will first sub- the Declarations. This limit applies to all tract that amount from the amount of "busi- coverages under this Coverage Part, includ- ness income"we would otherwise pay arising ing Coverage Extensions. However, costs we from any"one accident."We will then pay the incur under the Defense and Supplemental amount of loss or expense in excess of the Payments coverage shall not reduce the Deductible, up to the applicable Limit of In- available Limit Per Accident. surance shown in the Declarations. 2. Coverage Extension Limits If the Business Income dollar deductible is The limit of your insurance under each of the expressed as a number times ADV, that Coverage Extensions from loss or expense amount will be calculated as follows: arising from any "one accident" Is the The ADV will be the "business income" amount shown in the Declarations for that for the entire location that would have Coverage Extension. If an amount of time is been earned had no "accident" occurred shown, coverage under that Coverage Exten- during the period of interruption of busi- sion will continue for that amount of time im- ness divided by the number of working mediately following the "accident." days in that period. No reduction shall If two or more limits apply to the same por- be made for the "business Income" not tion of a loss, we will only pay the smaller being earned, or in the number of work- limit. ing days, because of the "accident" or D. DEDUCTIBLE any other scheduled or unscheduled shutdowns during the period of interrup- Unless otherwise indicated in the Declarations, tion. these deductibles apply separately for each ap- The number indicated in the Declarations plicable coverage. will be multiplied by the ADV as deter- 1. Damage to Covered Property mined above. The result will be used as a We will not pay for loss or damage resulting Business Income dollar deductible from any "one accident" until the amount of EXAMPLE loss or damage exceeds the Damage to Covered Property Deductible shown In the Business is interrupted for 10 days. If there Declarations. We will then pay the amount of had been no "accident," the total "business loss or damage in excess of the Damage to income" for those 10 days would have been Covered Property Deductible, up to the ap- $5,000. The Business Income Deductible is 3 plicable Limit of Insurance shown in the Dec- X ADV. larations. $5,000/ 10 = $500 ADV This Deductible applies to all coverages, in- 3 X$500 = $1,500 Business Income Deduct- cluding Coverage Extensions, except as ible otherwise specified in the Deductible provi- 3, Extra Expense sions for Business Income, Extra Expense, If an Extra Expense dollar deductible is Spoilage and Off Premises Service Interrup- shown in the Declarations, we will first sub- tion. tract that amount from the amount of loss or 2. Business Income expense we would otherwise pay with regard The Business Income Deductible applies to to insurance under the Coverage Exten- any loss of "business income," except as sion—Extra Expense arising from any "one provided in the Coverage Extension—Off accident." We will then pay the amount of Premises Service Interruption. loss or expense in excess of the Extra Ex- pense Deductible, up to the applicable Limit If a Business Income hour deductible is BM T1 50 01 93 Page 6 of 15 BOILER AND MACHINERY of Insurance shown in the Declarations. Extension—Ammonia Contamination, we will If an Extra Expense dollar deductible is ex- not pay for loss or damage resulting from any "one accident" until the amount of loss or pressed as a number times ADV, that amount will be calculated as described in damage exceeds the Ammonia Contamina- tion Deductible shown in the Declarations. D.2. above. We will then pay the amount of loss or If an Extra Expense hour deductible is shown damage in excess of the Ammonia Con- in the Declarations, we will not be liable for tamination Deductible, up to the applicable any loss or expense with regard to insurance Limit of Insurance shown in the Declarations. under the Coverage Extension—Extra Ex- If an Ammonia Contamination Deductible is pence occurring during the specified number expressed as a percentage of Loss, we will of hours immediately following the "acct- not be liable for the indicated percentage of dent." the loss or damage insured under the 4. Spoilage Coverage Extension—Ammonia Contamina- With regard to insurance under the Coverage tion. If the dollar amount of such percentage Extension—Spoilage, we will not pay for loss is less than the indicated Minimum Deduct- or damage resulting from any "one accident" ible, the Minimum Deductible will be the Am- until the amount of loss or damage exceeds monia Contamination Deductible. the Spoilage Deductible shown in the Decla- E. LOSS CONDITIONS rations. We will then pay the amount of loss The following conditions apply in addition to the or damage in excess of the Spoilage Deduct- Common Policy Conditions: able, up to the applicable Limit of Insurance shown in the Declarations. 1. Abandonment 5. Off Premises Service Interruption There can be no abandonment of any If an Off Premises Service Interruption dollar property to us. deductible is shown in the Declarations, we 2. Appraisal will first subtract that amount from the If we and you disagree on the value of the amount of loss or expense we would other- property, the amount of"business income" or wise pay with regard to Insurance under the the amount of loss, either may make written Coverage Extension—Off Premises Service demand for an appraisal of the loss. In this Interruption arising from any "one accident." event, each party will select a competent and We will then pay the amount of loss or ex- impartial appraiser. The two appraisers will „ pence in excess of the Off Premises Service select an umpire. If they cannot agree, either Interruption Deductible, up to the applicable may request that selection be made by a Limit of Insurance shown in the Declarations. judge of a court having jurisdiction. The ap If an Off Premises Service Interruption dollar praisers will state separately the value of the -- deductible is expressed as a number times property, the amount of"business income" or as ADV, that amount will be calculated as amount of loss. If they fail to agree, they will described in D.2. above. submit their differences to the umpire. A If an Off Premises Service Interruption hour ing. Each party will: decision agreed to by any two will be bind- deductible is shown in the Declarations, we will not be liable for any loss or expense with a. Pay its chosen appraiser; and „ regard to insurance under the Coverage Ex- b. Bear the other expenses of the appraisal tension—Off Premises Service Interruption and umpire equally. occurring during the specified number ofis_ If there is an appraisal, we will still retain our hours immediately following the "accident." right to deny the claim. Exclusion B.5.b. applies without regard to 3. Duties In the Event of Loss or Damage the Off Premises Service Interruption Deduct- ible. You must see that the following are done in the event of loss or damage: 6. Ammonia Contamination a. Give us prompt notice of the loss or With regard to insurance under the Coverage BM T1 50 01 93 Page 7 of 15 BOILER AND MACHINERY damage. Include a description of the a. Resuming business, partially or com- property Involved; pletely; b. As soon as possible, give us a descrip- b. Using merchandise or other property tion of how, when and where the loss or available to you; or damage occurred; c. Using the property or services of others. c. Allow us a reasonable time and oppor- 5. Loss Payment tunity to examine the property and pram- a, In the event of loss or damage covered ises before repairs are undertaken or by this Coverage Form, at our option, we physical evidence of the "accident" is re- will either: moved. But you must take whatever measures are necessary for protection (1) Pay the value of lost or damaged from further damage; property; d. Permit us to inspect the property and (2) Pay the cost of repairing or replacing records. Also permit us to take samples the lost or damaged property; of damaged and undamaged property (3) Take all or any part of the property at for inspection, testing and analysis. an agreed or appraised value: or e. If requested, permit us to question you (4) Repair, rebuild, or replace the under oath, at such times as may be property with other property of like reasonably required about any matter kind and quality. relating to this Insurance or your claim b. We will give notice of our intentions including your books and records. In within 30 days after we receive the proof such event, your answers must be of loss. signed; c. We will not pay you more than your f. Send us a signed, sworn statement of financial interest In the Covered Proper- loss containing the information we re- quest to settle the claim. You must do ty. this within 60 days after our request; d. We may adjust losses with the owners of lost or damaged property if other than g. Cooperate with us in the investigation you. If we pay the owners, such and settlement of the claim; pay- ments will satisfy your claims against us h. Promptly send us any legal papers or for the owner's property. We will not pay notices received concerning the loss or the owners more than their financial in- damage; and terest in the Covered Property. i. Make no statement that will assume any e. We will pay for covered loss or damage obligation or admit any liability, for any within 30 days after we receive the sworn loss or damage for which we may be proof of loss, if: liable, without our consent. (1) You have complied with all of the We may examine any insured under oath, terms of this Coverage Part; and while not in the presence of any other In- (2) We have reached agreement with sured and at such times as may be you on the amount of loss or an ap- reaso reasonably required, about any matter relat- praisal award has been made and ing to this insurance or the claim, including we have not denied the claim. an insured's books and records. In the event of an examination, an insured's answers 6. Valuation must be signed. a. We will pay you the amount you spend 4. Reducing Your Loss to repair or replace Covered Property directly damaged by an "accident" to an With respect to Coverage Extensions—Busi- "object." Our payment will be the smallest ness Income, Extra Expense, Off Premises of: Service Interruption and Spoilage, you must reduce your loss, if possible, by: (1) The cost to repair the damaged property; Page 8 of 15 BM T1 50 01 93 BOILER AND MACHINERY - (2) The cost to replace the damaged otherwise would have had. property; or 8. "Media"Valuation (3) The amount you actually spend that With regard to insurance under the Coverage is necessary to repair or replace the Extension—"Media," we will pay for "media' damaged property. on the following basis: b. If the cost of repairing or replacing a part a. For "media" that are mass-produced and of an "object" is greater than: commercially available, at the replace- (1) The cost of repairing the entire "ob- ment cost. ject"; or b. For all other"media," at the cost of: (2) The cost of replacing the entire "ob- (1) Blank material for reproducing the ject"; records; and We will pay only the smallest amount. (2) Labor to transcribe or copy the c. If an "object' cannot be repaired or the records when there is a duplicate. cost of repairing is more than the cost to 9. Business Income Report of Values replace, and the damage to the "object' You must report to us each year the "busi- equals or exceeds 100% of the actual ness income annual value"for all locations to cash value of the "object," you may which the Coverage Extension-Business In- choose to apply the following provision. come applies. New Generation Coverage-If you want 10. Business Income Coinsurance to replace a damaged "object' with a newer generation "object" of the same We will not pay the full amount of any "busi- capacity, we will pay up to 25% more ness income" loss if the "business income than an "object" of like kind, quality and actual annual value" Is greater than the "busi- capacity would have cost at the time of ness income estimated annual value" shown the "accident." in your latest report. Instead, we will deter- d. Except for New Generation Coverage, mine the most we will pay using the following you must pay the extra cost of replacing steps: damaged property with property of a a. Divide the "business income estimated better kind or quality or of a larger annual value" last reported to us by the capacity. "business income actual annual value" at tr— the time of the"accident"; e. We will not pay you if the loss or damage n� is to property that is obsolete or useless b. Multiply the total amount of the covered to you. loss of "business income" by the figure f. If you do not repair or replace the dam- determined in paragraph a. above; aged property within 18 months after the c. Subtract the applicable Deductible from tc date of the "accident," then we will pay the amount determined in paragraph b. only the smaller of the: above; ,, (1) Cost it would have taken to repair; or The resulting amount, or the the Business (2) Actual cash value; Income Limit, whichever Is less, is the most we will pay. We will not pay for the remainder at the time of the"accident." of the loss. 7. Spoilage Coverage Valuation This provision applies separately to each in- With regard to insurance under the Coverage sured location. Extension—Spoilage, we will pay for perish- EXAMPLE 1 (Underinsurance) — able goods on the basis of: When: a. The selling price at the time of the "acci The "business income actual annual value" at dent" as if no loss or damage had oc- the location of loss at the time of the "acci- curred; and dent" is $400,000. b. Less any discounts and expenses you BM T1 50 01 93 Page 9 of 15 BOILER AND MACHINERY The "business Income estimated annual Policy, and there is a disagreement be- value" in your latest report for the location of tween the insurers with respect to: loss is $200,000. (1) Whether such damage or destruction The actual loss of "business income" result- was caused by an "accident" insured ing from the "accident" is $80,000. against by this Coverage Part or by a The Business Income Limit is $1,000,000. peril insured against by such Corn- The Business Income Deductible is $5,000. mercial Property Policy(ies) or Step 1: $200,000/ $400,000 = .5 Coverage Part(s); or Step 2: $80,000 x .5 = $40,000 (2) The extent of participation of this Step 3: $40,000 - $5,000 = $35,000 Coverage Part and of such Commer- cial Property Policy(ies) or Coverage The total "business income" loss recovery, Part(s) in a loss which is insured after deductible, would be $35,000. For the against, partially or wholly, by any or remainder, you will either have to rely on all of said Policies or Coverage Parts. other insurance or absorb the loss yourself. EXAMPLE 2 (Adequate insurance) b. We shall, upon written request from you, pay to you one-half of the amount of the When: loss which is in disagreement, but In no The "business income actual annual value" at event more than we would have paid if the location of loss at the time of the "acci- there had been no Commercial Property dent" is$400,000. Policy(ies) or Coverage Part(s) in effect, subject to the following conditions: The "business income estimated annual 1 The amount of the loss which is in value" in your latest report for the location of (1) loss is $400,000. disagreement, after making provi- sions for any undisputed claims pay- ing The actual "accident'ac of "business income" result- able under the Policies or Coverage from the is it is $1,000,000.$00. Parts and after the amount of the The Business Income DLieductible t leIs $5, loss is agreed upon by you, us, and The Business Income Deductible Is $5,000. the provider of Commercial Property Step 1: $400,000/ $400,000 = 1 Insurance, is limited to the minimum Step 2: $80,000 x 1 = $80,000 amount remaining payable under Step 3: $80,000 - $5,000 = $75,000 either this Coverage Part or the Corn- The total "business income" loss recovery, mercial Property Policy(ies) or after deductible, would be $75,000. Coverage Part(s); 11. Conditional Suspension of Coinsurance (2) The Commercial Property insurer(s) shall simultaneously pay to you one- The Business Income Coinsurance provision half of the amount which is in dis- is suspended if we have received from you a agreement; Business Income Report of Values as follows: (3) The payments by us and the Com- a. The report must provide a "business in- mercial Property insurer(s) here- come estimated annual value" for the under and acceptance of those sums location or locations affected by the "ac by you signify the agreement of us "ac- cident''; and and the agreement of us and the b. The "business income estimated annual commercial property with arbitration value" must apply to an annual period within 90 days of such payment; ending no later than 90 days before the The arbitrators shall be three in num- date of the "accident." ber, one of whom shall be appointed 12. Joint Loss by us and one of whom shall be ap- a. In the event of loss or damage insured pointed by the commercial property under this Coverage Part and also under insurer(s) and the third appointed by a Commercial Property Policy(ies) or consent of the other two, and the Coverage Part(s) that is not part of this decision by the arbitrators shall be Page 10 of 15 BM T1 50 01 93 BOILER AND MACHINERY binding on us and the Commercial 3. Legal Action Against Us Property insurer(s) and that judg- No one may bring a legal action against us ment upon such award may be under this Policy unless: entered in any court of competent jurisdiction; a. There has been full compliance with all the terms of this Policy; and (4) You agree to cooperate in connec- tion with such arbitration but not to b. The action is brought within two years Intervene therein; and one day next after the date of the "accident"; or (5) The provisions of this condition shall not apply unless such other Pol- c. We agree in writing that you have an icy(ies) or Coverage Part(s) issued obligation to pay for damage to Covered by the Commercial Property in- Property of others or until the amount of surer(s) is similarly endorsed; and that obligation has been determined by final judgment or arbitration award. No (6) Acceptance by you of any payment one has the right under this Policy to pursuant to the provisions of this bring us into an action to determine your condition, Including any arbitration liability. award, shall not operate to alter, waive or surrender or in any way af- 4. Adjustment of Premium fect the rights you have against us or a. The premium charged at the inception of the commercial property insurer(s). each policy year is an advance premium. F. ADDITIONAL CONDITIONS We will determine an adjusted premium for this insurance based on your reports The following conditions apply in addition to the of value. Common Policy Conditions: b. If the adjusted premium is less than the 1. Cancellation advance premium, we will return the ex- As respects this Coverage Part, part 2 of the cess premium to you. Such excess "Cancellation" Condition of this Policy is re- premium will not exceed 75% of the ad- placed by the following: vance premium. We may cancel this Coverage Part by mall- c. If the adjusted premium is greater than ing or delivering to the first Named Insured the advance premium, we will charge the written notice of cancellation at least: additional premium. a. 10 days before the effective date of can- 5. Liberalization cellation if we cancel for nonpayment of If we adopt any revision that would broaden premium; or the coverage under this Coverage Part b. The number of days indicated in the without additional premium within 45 days Declarations for Notice of Cancellation prior to or during the policy period, the before the effective date of cancellation broadened coverage will immediately apply for any other reason. to this Coverage Part. 2. Concealment, Misrepresentation or Fraud 6. Other Insurance This Coverage Part is void in any case of (a) You may have other insurance subject to 0o fraud by you relating to it. It is also void if the same plan, terms, conditions and you or any other Named Insured at any time provisions as the insurance under this intentionally conceal or misrepresent a Coverage Part. If you do, we will pay our material fact concerning: share of the covered loss or damage. (1) This Coverage Part; Our share is the proportion that the(2) The Covered Property; ap- plicable limits under this Coverage Part bear to the Limits of Insurance of all in- (3) Your interest in the Covered Property; or surance covering on the same basis. (4) A claim under this Coverage Part. (b) If there is other insurance covering the same loss or damage, other than that BM T1 50 01 93 Page 11 of 15 BOILER AND MACHINERY described in (a) above, we will pay only 10. Bankruptcy the amount of covered loss or damaged The bankruptcy or insolvency of you or your in excess of the amount due from that estate will not relieve us of any obligation other insurance, whether you can collect under this Coverage Part. on it or not. 11. Suspension In no case will we pay more than the ap Whenever an "object" is found to be in, or plicable limits. exposed to, a dangerous condition, any of 7. Policy Period, Coverage Territory our representatives may immediately sus- Under this Coverage Part: pend the insurance against loss from an "ac- a. The"accident" must occur: "ac- cident to that "object." This can be done by delivering or mailing a written notice of (1) During the Policy Period shown in suspension to: the Declarations; and a. Your last known address; or (2) Within the Coverage Territory. b. The address where the "object" is lo- b. The Coverage Territory is: cated. (1) The United States of America (includ- Once suspended in this way, your insurance ing its territories and possessions); can be reinstated only by an endorsement (2) Puerto Rico; and for that"object." (3) Canada. 12. Mortgage Holders 8. Transfer of Rights of Recovery Against a. The term mortgage holder includes trus- Others to Us tee. If any person or organization to or for whom b. We will pay for direct damage to Covered we make payment under this Coverage Part Property due to an "accident" to an "ob- has rights to recover damages from another, ject" to each mortgage holder shown in those rights are transferred to us to the ex- the Declarations in their order of prece- tent of our payment. That person or organi- dence, as interests may appear. zation must do everything necessary to c. The mortgage holder has the right to re- secure our rights and must do nothing after ceive loss payment even If the mortgage loss to impair them. But you may waive your holder has started foreclosure or similar rights against another party In writing: action on the Covered Property. a. Prior to a loss to your Covered Property. d. If we deny your claim because of your b. After a loss to your Covered Property acts or because you have failed to comp- only if, at time of loss, that party is one of ly with the terms of this Coverage Part, the following: the mortgage holder will still have the right to receive loss payment if the (1) Someone insured by this insurance; mortgage holder: (2) A business firm: (1) Pays any premium due under this (a) Owned or controlled by you; or Coverage Part at our request If you (b)That owns or controls you; or have failed to do so; (3) Your tenant. (2) Submits a signed, sworn proof of loss within 60 days after receiving This will not restrict your insurance. notice from us of your failure to do 9. Additional Insured so; and If a person or organization is designated in (3) Has notified us of any change in this Coverage Part as an additional insured, ownership or occupancy or substan- we will consider them to be an insured under tial change in risk known to the this Coverage Part only to the extent of their mortgage holder. interest. All of the terms of this Coverage Part will Page 12 of 15 BM T1 50 01 93 BOILER AND MACHINERY then apply directly to the mortgage 2. "Business Income" means the sum of: holder. a. The Net Income (net profit or loss before e. If we pay the mortgage holder for any income taxes) that would have been loss and deny payment to you because earned or incurred; and of your acts or because you have failed b. Continuing normal operating expenses to comply with the terms of this incurred, including payroll. Coverage Part: 3. "Business Income Actual Annual Value" (1) The mortgage holder's right under means the "business income" for the current the mortgage will be transferred to us fiscal year that would have been earned had to the extent of the amount we pay; no"accident" occurred. and In calculating the "business income actual (2) The mortgage holder's right to annual value," we will take into account the recover the full amount of the mort- actual experience of your business before gage holder's claim will not be im- the "accident' and the probable experience paired. you would have had without the "accident." At our option, we may pay to the mort- 4. "Business Income Estimated Annual gage holder the whole principal on the Value" means the "business income" as es- mortgage plus any accrued Interest. In timated by you in the most recent Business this event, your mortgage and note will Income Report of Values we have on file. be transferred to us and you will pay 5. "Extra Expense" means: your remaining mortgage debt to us. f. If we cancel this policy, we will give writ- The additional cost you incur to operate your ten notice to the mortgage holder at business during the interruption over and least: above the cost that normally would have been incurred to operate the business during (1) 10 days before the effective date of the same period had no "accident" occurred. cancellation if we cancel for your 6. "Media" means all forms of electronic and nonpayment of premium; or magnetic tapes and discs, converted data, (2) 30 days before the effective date of program or instruction for use in any elec- cancellation If we cancel for any tronic computer or electronic data process- = other reason. ing equipment. g. If we elect not to renew this policy, we 7, "Object" means: will give written notice to the mortgage a, Any of the following, unless otherwise ex- holder at least 10 days before the expire- cluded: tion date of this policy. G. DEFINITIONS (1) Boiler, fired vessel, unfired vessel normally subject to vacuum or inter- .= 1. "Accident' means a sudden and accidental nal pressure other than weight of its breakdown of the "object' or part of the "ob- contents, refrigerating and air con- ject." At the time the breakdown occurs, It ditioning vessels, and any metal must become apparent by physical damage piping and its accessory equipment; that requires repair or replacement of the (2) Mechanical or electrical machine or "object" or part of the "object." apparatus used for the generation, r. None of the following is an "accident": transmission or utilization of mech- a. Depletion, deterioration, corrosion, ero- anical or electrical power. sion, or wear and tear, unless a sudden (3) Any of the following vessels listed — and accidental breakdown ensues; below are included within the pro- b. The breakdown of any structure or foun- visions of this section when used dation; or with an "object': c. The functioning of any safety or protec- (a) Condensate return tank; tive device. BM T1 50 01 93 Page 13 of 15 BOILER AND MACHINERY (b) Cushion or expansion tank used (13) Machine or apparatus that is used with a hot water heating boiler. for research, medical, diagnostic, (4) Fiber optic cable. surgical, dental or pathological pur- b. "Object'' does not mean any: poses; (1) Part of a boiler, fired vessel or elec- (14) Felt, wire, screen, die, extrusion tric steam generator that does not plate, swing hammer, grinding disc, contain steam or water; cutting blade, cable, chain, belt, rope, clutch plate, brake pad, non- (2) Insulating or refractory material; metallic part or any part or tool sub- (3) Non-metallic vessel, unless it is con- ject to frequent, periodic replace- structed and used in accordance ment; with the American Society of Mech- (15) "Object" manufactured by you for anical Engineers Code; (A.S.M.E.) sale. (4) Catalyst; c. For any boiler or fired vessel, the furnace (5) Buried vessel or piping; of the "object" and the gas passages (6) Sewer piping, piping forming a part from there to the atmosphere will be of a fire protection system or water considered as outside the"object." piping other than: d. When a vessel uses a heat transfer (a) Feed water piping between any medium other than water or steam, we will consider the medium or its vapor as boiler and Its feed pump or injec- tor; or substitutes for the words—water or steam. (b) Boiler condensate return e. For any gas turbine, "accident" does not piping; include the cracking of any part of the or object exposed to the products of com- (c) Water piping forming a part of bustion. refrigerating and air conditioning f. If Production Machines are shown as Ex- vessels and piping used for cool- cluded in the Declarations, "object" does ing, humidifying or space heating not mean any production or process purposes; machine or apparatus that (7) Part of a vessel that is not under; pp processes, forms, cuts, shapes, grinds, or conveys (a) Pressure of the contents of the raw materials, materials in process or vessel; or finished products. But °object° does (b) Internal vacuum; mean any: (8) Oven, stove, furnace, incinerator, pot (1) Pressure vessel or vacuum vessel, or kiln; described in Paragraph a. above, other than any cylinder containing a (9) Structure, foundation, cabinet or movable plunger or piston; compartment containing the object; (2) Pump, compressor, fan, or blower (10) Power shovel, dragline, excavator, that conveys raw materials, materials vehicle, aircraft, floating vessel or in process or finished products; structure, penstock, draft tube or well-casing; (3) Separate enclosed gear set con- nected by a coupling, clutch or belt; (11) Conveyor, crane, elevator, escalator or or hoist, but not excluding any electrical machine or electrical ap- (4) Separate driving electrical or mech- paratus mounted on or used with anical machine connected by a cou- this equipment; piing clutch or belt. (12) "Media" used with any electronic 8. "One Accident" means: computer or electronic data process- If an initial "accident" causes other "acci- ing equipment; dents," all will be considered "one accident." Page 14 of 15 BMT7500193 BOILER AND MACHINERY All "accidents" at any one location that ages are claimed and to which you must manifest themselves at the same time and submit or do submit with our consent; or are the result of the same cause will be con- b. Any other alternative dispute resolution sidered "one accident." proceeding in which damages are 9. "Suit" means a civil proceeding to which this claimed and to which you submit with insurance applies and includes: our consent. a. An arbitration proceeding in which dam- O= Page15of15 BM T1 50 01 93 GENERAL PURPOSE ENDORSEMENT POLICY NUMBER: M5J-660-920J5922-TIL-94 BOILER AND MACHINERY THE FULL AND COMPLETE NAME OF INSURED IS AS FOLLOWS: COLORADO COUNTIES CASUALTY AND PROPERTY POOL, ETAL ADDITIONAL NAMED INSUREDS ALAMOSA COUNTY LA PLATA COUNTY ARCHULETTA COUNTY LAKE COUNTY BACA COUNTY LAS ANIMAS COUNTY BENT COUNTY LINCOLN COUNTY CHAFFEE COUNTY LOGAN COUNTY CHEYENNE COUNTY MINERAL COUNTY CLEAR CREEK COUNTY MONTROSE COUNTY CONEJOS COUNTY MORGAN COUNTY COSTILLA COUNTY OTERO COUNTY CROWLEY COUNTY OURAY COUNTY DELTA COUNTY PARK COUNTY DOLORES COUNTY PHILLIPS COUNTY DOUGLAS COUNTY PITKIN COUNTY EAGLE COUNTY PROWERS COUNTY ELBERT COUNTY PUEBLO COUNTY FREMONT COUNTY RIO BLANCO COUNTY GARFIELD COUNTY RIO GRANDE COUNTY GILPIN COUNTY ROUTT COUNTY GRAND COUNTY SAGUACHE COUNTY GUNNISON COUNTY SAN JUAN COUNTY HINSDALE COUNTY SEDGWICK COUNTY HUERFANO COUNTY SUMMIT COUNTY JACKSON COUNTY TELLER COUNTY KIOWA COUNTY WASHINGTON COUNTY KIT CARSON COUNTY WELD COUNTY YUMA COUNTY BM T8 00 07 94 PAGE 01 (END) BOILER AND MACHINERY THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. SPECIAL LOCATION SCHEDULE The following is being used on this policy instead of a specific schedule of"locations" attached to the policy. All "locations" owned, operated or under the 1. You must submit an updated list of all "loca- care, custody or control of the Named Insured, tions" to be covered under the policy for the that are located in the continental United States, upcoming policy year; and Alaska, Hawaii or Puerto Rico, and are on file 2. The "Automatic Coverage" extension ceases with us, are considered as individually inserted In to apply at any "location" acquired prior to any "location" entry area of any Declarations or that anniversary date and not on the most Endorsement, unless specifically changed by current list filed with us. endorsement. At each anniversary of the policy: o= BM T8 69 04 91 Page 1 of 1 The Travelers 1 Tower Square Rartford, CT 06183 CHANGE ENDORSEMENT Named Insured: COLORADO COUNTIES CASUALTY & PROPERTY POOL Policy Number: 660-920J5922-TIL-94 Policy Effective Date: 07/01/94 Issue Date: 08/04/94 Return Premium $ 3 ,248 Effective from 07/01/94 at the time of day the policy becomes effective. THIS INSURANCE IS AMENDED AS FOLLOWS: THE BOILER AND MACHINERY COVERAGE PART IS AMENDED AS FOLLOWS: THE FOLLOWING COUNTIES ARE HEREBY DELETED FROM THE POLICY: DOUGLAS COUNTY PROWERS COUNTY COUNTERSIGNED BY: �.� raAd Awthor zed �RIe Y'c/ sentative NAME AND ADDRESS OF AGENT OR BROKER: DAm'• O t �4d! ROLLINS HUDIG HALL OF UTAH (EC815) 2180 SOUTH 1300 EAST SUITE 500 SALT LAKE, UT 84152 BM TO 01 11 85 PAGE 1 OF 1 OFFICE: SALT LAKE CITY Hello