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Home My WebLink About000134.tiff Colorado Counties Casualty and Property Pool September 28, 1995 TO: CAPP Designated Correspondents FROM: Louella Casias, Account Executive RE: CAPP 1995/96 Excess Policies Enclosed you will find the following policies for the policy year July 1, 1995 through June 30, 1996. 1. Excess Liability Policy #CLM7739071 2. Excess Property Policy #GF03400003 3. Boiler and Machinery Policy #M5J660920J5922TIL95 These policies should be filed in the CAPP Insuring Agreements binder(dark blue/white letters). Please contact me if I can answer any questions pertaining to this matter. /lc Administered 8p County Technical Services,Inc. 134 1177 Grant Street, Suite 200 Denver, Colorado 80203 I Phone 303,861,0507 I Fax 303.861.2832 The Travelers 1 Tower Square Hartford, CT 06183 CHANGE ENDORSEMENT Named Insured: Colorado Counties Casualty & Property Pool Policy Number: M5J-660-920J5922-TIL-95 Policy Effective Date: 07/01/95 Issue Date: 07/20/95 Premium: $0 Effective from 07/01/95 at the time of day the policy becomes effective: THIS INSURANCE IS AMENDED AS FOLLOWS: THE BOILER&MACHINERY COVERAGE PART IS AMENDED AS FOLLOWS: The following named insureds are hereby deleted from the policy: Douglas County Prowers County COUNTERSIGNED BY: /_u ` !CA!e. 2.e L Authorized Representative NAME AND ADDRESS OF AGENT OR BROKER DATE: July 20, 1995 (F6347 ) Marsh & McLennan Gr B-C 3 Embarcadero Center P.O. Box 193880 San Francisco, CA 94119-3880 BM TO 01 11 85 PAGE 1 OF 1 OFFICE: Walnut Creek AMERICAN INTERNATIONAL SPECIALTY LINES INSURANCE COMPANY c/o American International Surplus Lines Agency, Inc. Harborside Financial Center 401 Plaza 3 Jersey City, NJ 07311 A Capital Stock Insurance Company THIS IS A CLAIMS MADE POLICY - PLEASE READ THIS POLICY CAREFULLY *THIS POLICY IS A CLAIMS-MADE POLICY WHICH POLICY NUMBER: CLhi 773- 90-71 PROVIDES LIABILITY MADE DURING THE COVERAGE CLAIM P0LICY PERI0D OR ANY APPLICABLE PRODUCER NO.: 08211 EXTENDED REPORTING PERIOD". PRODUCER NAME: BOWRING NORTH AMERICA ADDRESS: 1166 AVENUE OF THE AMERICAS NEW YORK, NEW YORK 10036 ITEM 1. NAMED INSURED: COLORADO COUNTIES CASUALTY & PROPERTY POOL ET AL ADDRESS: 1177 GRANT STREET DENVER, COLORADO 80203 ITEM 2. POLICY PERIOD: FROM JULY 1, 1995 TO JULY 1, 1996 12:01 A.M. STANDARD TIME AT THE ADDRESS OF THE NAMED INSURED SHOWN ABOVE. Ia,0"-) c);12 ITEM 3. LIMIT OF LIABILITY: i o ca-le, a) Per Occurrence: $750,000 O M o a b) Self Insured Retained Limit: $250,000 each occurrence C• " O -a ilia c) Aggregate Limits - Separately as respects: ¢o e 53) E 2 N wi ti r (i) Products Hazard and Completed Operations g a Hazard Combined: $750,000 `D ce (ii) Public Officials Errors and Omissions: $750,000 iv to (These aggregates apply on a per Participating Member County basi o r? O C Z �s N w m L - ITEM 4. RETROACTIVE DATE: JULY 1, 1986 - Unless otherwise endorse . c c �. a t ITEM 5. PREMIUM COMPUTATION: FLAT ANNUAL MINIMUM EARNED ADVANCE PREMIUM MINIMUM PREMIUM PREMIUM AT INCEPTION $470,000 $470,000 / p$117,500 1 et"'r COUNTERSIGNED BY AUTHORIZED REPRESENTATIVE INSURED'S COPY SPECIAL EXCESS LIABILITY POLICY THIS IS A CLAIMS MADE FORM. READ YOUR POLICY CAREFULLY. Certain provisions in this policy restrict coverage. Read the entire policy carefully to determine your rights and duties and what is not covered. In consideration of the payment of the premium, and in reliance upon the statements in the Declarations made a part hereof and subject to the limits of liability, exclusions, conditions and other terms of this policy, the Company agrees with the Insured named in the Declarations as follows: INSURING AGREEMENTS A. The Company will indemnify the Insured that portion of the Ultimate Net Loss in excess of the Retained Amount, which the Insured shall become legally obliged to pay as compensatory damages (excluding all fines, penalties, punitive or exemplary damages) because of Personal Injury, Property Damage, or Public Officials Errors and Omissions Liability caused by an Occurrence to which this insurance applies, due to: a) liability imposed upon the Insured by law, or b) liability assumed by the Insured under contract or agreement to a Participating Member County. B. This insurance applies to Personal Injury, Property Damage or Public Officials Errors and Omissions Liability only if a claim for such damages (1) is first made against the Insured during the policy period and written notice of such claim is received by the Insured, the underlying insurer or us, whichever comes first, AND (2) is attributable to an occurrence which occurred on or after the Retroactive Date shown in the Declarations. C. All claims for damages because of Personal Injury and Public Officials Errors and Omission Liability to the same person, (including damages claimed by any person or organization for care, loss of consortium, loss of services or death resulting at any time) will be deemed to have been made at the time the first of those claims is made against the Insured. D. All claims for damages because of Property Damage causing loss to the same person or organization as a result of an occurrence will be deemed to have been made at the time the first of those claims is made against the Insured. Page 1 INSURED'S COPY DEFENSE COSTS 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 made, suits brought, or proceedings instituted which are or may be covered under this policy, and the named Insured or Participating Member County and the Company shall cooperate to the fullest extent possible. If the Company avails itself of the opportunity to be associated in the defense, it shall do so at its own expense. Defense Costs are part of and not in addition to the limits of liability set forth in Items 3a and 3c of the Declarations, and any payment of amounts incurred for defense will serve to reduce such limits of liability. Any payment of amounts incurred for defense will also serve to reduce the Insured's retained limit as specified in Item 3b of the Declarations RETAINED LIMIT - THE COMPANY'S LIMIT OF LIABILITY Regardless of the number of (1) Insureds under this policy, (2) persons or organizations who sustain injury or damage, or (3) claims made or suits brought on account of Personal Injury, Property Damage or Public Officials Errors and Omissions the Company's liability is limited as follows: With respect to Personal Injury, Property Damage, Public Officials Errors and Omissions, or any combination thereof, the Company's liability shall be only for the Ultimate Net Loss in excess of the Insured's retained limit as specified in Item 3b, of the Limits of Liability section of the Declarations as the result of any one Occurrence or Wrongful Act, and then for an amount not exceeding the amount specified in Item 3a of the Limits of Liability section of the Declarations as the result of any one Occurrence or Wrongful Act. This policy is subject to aggregate limits of liability as stated in the Declarations, Item 3c. These aggregate limits of liability are the maximum amount that will be paid under this policy for all Occurrences or Wrongful Acts during the Policy Period applying separately to: (A) The Products Hazard and the Completed Operations Hazard combined; (B) Public Officials Errors and Omissions These aggregates apply on a "per Participating Member County" basis. For the purpose of determining the limit of the Company's liability, all Personal Injury or Property Damage or Wrongful Act claims arising out of continuous or repeated exposure to substantially the same general conditions shall be considered as arising out of one Occurrence. Page 2 INSURED'S COPY Public Officials Errors and Omissions taking place over more than one Policy Period insured by this Company shall be deemed to have taken place during the last Policy Period and only that limit shall apply. POLICY PERIOD - TERRITORY This policy applies to Personal Injury, Property Damage, or Public Officials Errors and Omissions occurring anywhere in the world during the Policy Period. PERSONS OR ENTITIES INSURED Each of the following is an Insured to the extent set forth below: (A) The Named Insured and Participating Member Counties (hereinafter referred to as the Named Insured) (B) Those individuals who were or now are elected or appointed officials of the Insured, including members of its governing body or any other committees, trustees, boards or commissions of the Insured, district attorneys and their assistants, agents and volunteers while acting for or on behalf of the Named Insured (C) Past or present employees of the Named Insured while acting for or on behalf of the Named Insured. (D) 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; Page 3 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. EXCLUSIONS This policy does not apply: (A) To any obligation for which the Insured or any carrier as the insurer for the Insured may be held liable under any worker's compensation, occupational disease, unemployment compensation or disability benefits law, or under any similar law. (B) To any liability for Property Damage to: (1) Real Property occupied by or leased to the Insured, his agents or subcontractors; or (2) Real or Personal Property in the Insured's, his agents or subcontractor's care, custody or control or as to which the Insured, his agents or subcontractors is for any purpose exercising control, unless no other valid and collectible insurance is available to the Named Insured. (C) As respects liability assumed by the Insured under any contract: (1) To any claim, judgment or agreement from any arbitration proceeding wherein the Company is not entitled to exercise with the Insured the Insured's rights in the choice of arbitrators, and in the conduct of such proceedings; (2) If the indemnitee of the Insured is an architect, engineer or surveyor, to the liability of the indemnitee, his agents or employees, arising out of: (a) The preparation or approval of contracts, maps, plans, drawings, opinions, reports, tests, surveys, change orders, designs or specifications, or; (b) The giving or the failure to give directions or instructions by the indemnitee, his agents or employees, provided such giving or failure to give is the primary cause of Personal Injury or Property Damage. Except that (a) and (b) above will not apply to resulting Personal Injury or Property Damage. (D) To liability arising out of the operation of any Airport, except with respect to the maintenance of any buildings, premises or grounds incidental thereto. E) Liability for Personal Injury or Property Damage arising out of the rendering or failure to render health professional services: Page 4 INSURED'S COPY (a) which results from any surgical procedures (b) at any hospital (F) To liability arising out of the failure to supply a specific amount of electrical power, fuel or water or to liability arising out of the interruption of the electrical power, fuel or water supply. (G) To Personal Injury or Property Damage: (1) (a) With respect to which the Insured is also an Insured under a nuclear energy policy issued by the Nuclear Energy Liability-Property Insurance Association, Mutual Atomic Energy Liability Underwriters of Nuclear Insurance Association of Canada, or would be an Insured under any such policy but for its termination upon exhaustion of its limit of liability; or (b) Resulting from the hazardous properties of nuclear material and with respect to which (i) any person or any organization is required to maintain financial protection pursuant to the Atomic Energy Act of 1954, or any law amendatory thereof, (ii) the Insured is, or had this policy not been vailable would, be, entitled to indemnity from the United States of America or any agency thereof, with any person or organization. (2) Under any liability coverage, to injury, sickness, disease, death or destruction resulting from the hazardous properties of nuclear material, if: (a) The nuclear material (i) is at any nuclear facility owned by the Insured or operated by the Insured or on the Insured's behalf, or (ii) has been discharged or dispensed therefrom; (b) The nuclear material is contained in spent fuel or waste at any time possessed, handled, used, processed, stored, transported or disposed of by the Insured or on the Insured's behalf; or (c) The injury, sickness, disease, death or destruction arises out of the furnishing by the Insured of services, materials, parts or equipment in connection with the planning, construction, maintenance, operating or use of any nuclear facility, but if such facility is located within the United States of America, its territories or Canada, this exclusion (3) applies only to injury or Property Damage to such nuclear facility and any property threat. (3) As used in this exclusion: (a) "hazardous properties" includes radioactive, toxic or explosive properties; Page 5 INSURED'S COPY (b) "nuclear material" means source material, special nuclear material, or byproducts material; (c) "source material", "special nuclear material" and "by-product material" have the meanings given them in the Atomic Energy Act of 1954 or any law amendatory thereof; (d) "spent fuel" means any fuel element or fuel component, solid or liquid, which has been used or exposed to radiation in a nuclear reactor; (e) "waste" means any waste material (i) containing by-product other than the tailings or wastes produced by the extraction or concentration of uranium or thorium from any ore processed primarily for its source material contents and (ii) resulting from the operation by any person or organization of a nuclear facility included within the definition of nuclear facility below; (f) "nuclear facility" means: (i) any nuclear reactor (ii) 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 wastes; (iii) any equipment or device used for the processing, fabricating, or alloying of special nuclear material if at any time the total amount of such material in the Insured's custody 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; (iv) any structure, basin, excavation, premises or place prepared or used for 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. (g) "nuclear reactor" means any apparatus designed or used to sustain nuclear fission in a self-supporting chain reaction to contain a critical mass of fissionable material; (h) with respect to injury or to destruction of property, the word "injury" or "destruction" includes all forms of radioactive contamination of property. (H) (1) To any claim for Personal Injury, Property Damage, or Public Officials Errors and Omissions arising out of the discharge, dispersal, release or escape of pollutants, anywhere in the world; Page 6 INSURED'S COPY (2) To any obligation to defend any suit or claims against the Insured alleging Personal Injury, or Property Damage, or Public Officials Errors and Omissions and seeking Damages, if such suit or claim arises from Personal Injury, Property Damage, or Wrongful Acts arising out of the discharge, dispersal, release or escape of pollutants, anywhere in the world; (3) To any loss, cost or expense arising out of any governmental direction or request that the Insured test for, monitor, clean up, remove, contain, treat, detoxify or neutralize pollutants; (4) To any loss, cost, or expense incurred by a governmental unit or other third party, including but not limited to cost of investigation and monitoring and attorney's fees relating to activities in connection with efforts to test for, monitor, clean up, remove, contain, trace, detoxify or neutralize pollutants. "Pollutants" means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste material. Waste material includes materials which are intended to be or have been recycled, reconditioned or reclaimed. (I) (1) To any liability for Personal Injury, Property Damage, Public Officials Errors and Omissions, occupational disease, or death at any time arising out of the manufacture of, mining of, use of, sale of, installation of, removal of, distribution of or exposureto, asbestos products, asbestos fibers or asbestos dust; or, (2) To any obligation of the Insured to indemnify any party because of damage arising out of such Personal Injury, Property Damage, Public Officials Errors and Omissions, occupational disease, or death, at any time as a result of the manufacture of, mining of, use of, sale of, installation of, removal of, distribution of or exposure to asbestos, asbestos products, asbestos fibers or asbestos dust; or (3) To any obligation to defend any suit or claim against the Insured alleging Personal Injury, or Property Damage, or Public Officials Errors and Omissions and seeking Damages, if such suit or claim arises from Personal Injury, or Property Damage, or Wrongful Acts, resulting or contributed to, by any and all manufacture of, mining of, use of, sales of, installation of, removal of, distribution of, or exposure or exposure to asbestos, asbestos products, asbestos fibers or asbestos dust; (4) To any loss, cost, expense, fine or penalty arising out of any of the foregoing Items 1, 2, and 3. (J) As respects liability imposed upon an Insured (or which is imputed to an Insured) under the "Employee Retirement Income Security Act of 1974" and any law amendatory thereof; Page 7 INSURED'S COPY (K) To claims, nor does the Company have the duty to defend any suit against the Insured seeking Damages, arising out of the sexual or physical abuse or molestation of any person involving actual or alleged physical contact by an Insured. This exclusion applies only to any person who has or is alleged to have made any attempt at any sexual or physical abuse or molestation or knowingly participated in any sexual abuse or molestation by an Insured. (L) Except with respect to operations performed by independent contractors, to liability arising out of the ownership, maintenance or use, including loading or unloading, of watercraft over 25 feet in length or of aircraft. (M) 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. (N) To any claim or potential claim or Occurrence 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. (O) To any claim resulting from an Occurrence which occurred prior to the Retroactive Date in the Declarations. (P) To liability for Personal Injury to any person while said person is practicing for, participating in, or officiating at any contest or exhibition of an athletic or sports nature sponsored, conducted or directed by the Insured. (Q) Under Public Officials Error and Omissions Liability, to: (1) Personal Injury or Property Damage as defined in the policy; (2) Liability of any Insured arising out of estimates of probable costs or cost estimates being exceeded or for faulty preparation of bid specifications or failure to award contracts in accordance with statue or ordinance which under law must be submitted for bids; (3) Injury to, destruction or disappearance of any tangible property (including money) or the loss of use thereof. Page 8 INSURED'S COPY DEFINITIONS When used in this policy (including endorsements forming a part hereof): "Airport" means any landing area regularly used by aircraft for receiving or discharging passengers or cargo, including runways, taxiway, hangars and ramps used for aircraft maintenance, servicing, parking or storage and all areas encompassed by or immediately adjacent to such facilities. General offices or hangars, buildings or other areas used for general offices or hangars, buildings or other areas used for the manufacture or assembly of new aircraft shall not be included within the meaning of the word "airport" as described above. "Airport" also does not include designated emergency landing sites. "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. "Company" means the insurer(s) specified in the Declarations. "Competed Operations Hazard" includes Personal Injury and Property Damage arising out of operations or reliance upon a representation or warranty made at any time with respect thereto, but only if the Personal Injury or Property Damage occurs after such operations have been completed or abandoned and occurs away from premises owned by or rented to the Insured. "Operations" include materials, parts or equipment furnished in connection therewith. Operations shall be deemed completed at the earliest of the following times: (A) When all operations to be performed by or on behalf of the Insured under the contract have been completed; (B) When all operations to be performed by or on behalf of the Insured at the site of the operations have been completed; or (C) When the portion of the work out of which the injury or damage arises has been put to its intended use by any person or organization other than another contractor or subcontractor engaged in performing operations for a principal as part of the same project. "Operations" which may require further service or maintenance work, or correction, repair or replacement because of any defect or deficiency, but which are otherwise completed shall be deemed completed. The "Completed Operations Hazard" does not include Personal Injury or Property Damage arising out of: Page 9 INSURED'S COPY (A) Operations in connection with the transportation of property unless the Personal Injury or Property Damage arises out of a condition in or on a vehicle created by the loading or unloading thereof; (B) The existence of tools, uninstalled equipment or abandoned or unused materials. "Damages" includes Damages for death and for care and loss of services resulting from Personal Injury and Damages for loss of use of property resulting from Property Damage, and damage resulting from Public Officials Errors and Omissions. "Defense Costs" means attorney's fees, costs and expenses and other fees, costs and expenses incurred in connection with the investigation, adjustment, defense and appeal of a claim or suit covered hereunder. However, "Defense Costs" do not include the office expenses of the Company or the Insured nor the salaries of employees or officials of the Company's or the Insured. "Insured" means any person or organization qualifying as an Insured under the Persons or Entities Insured section of this policy. The insurance afforded applies separately to each Insured against whom claim is made or suit is brought. "Occurrence" means an accident or event, including continuous or repeated exposure to conditions, which result in Personal Injury, Property Damage, or Public Officials Errors and Omissions, neither expected nor intended from the standpoint of the Insured. All such exposure to substantially the same general conditions shall be deemed one "Occurrence." "Personal Injury" means: (A) Bodily injury, sickness, disease, disability, shock, mental anguish, humiliation, mental injury, or death resulting from any of the foregoing; (B) False arrest, false imprisonment, wrongful detention, or malicious prosecution; (C) Wrongful entry into, or eviction of any person from, a room, dwelling, or premises that a person occupies, or other invasion of the right of private occupancy, including erroneous service of civil papers (D) A publication or utterance that slanders or libels a person or organization or disparages a person's or organization's goods, products, property or services, and piracy and infringement of copyright or of property; (E) A publication or utterance that violates a person's right of privacy; Page 10 INSURED'S COPY (F) Wrongful termination or discrimination based upon race, religion, nationality, national origin, color, creed, sex or age; (G) Assault and battery, violation of civil rights and disparagement of property, not committed by at the direction of, or with the consent of the Insured. However, this limitation does not apply i) if committed or directed for the purpose of protecting persons from injury or death, or property from damage, or ii) to liability arising out of corporal punishment except (D) and (E) do not apply to advertising, publishing, broadcasting or telecasting done by or for the Insured. "Products Hazard" means Personal Injury and Property Damage arising out of the Insured 's products or reliance upon a representation or warranty with respect thereto, but only if the Personal Injury or Property Damage occurs away from premises owned by or rented to the Insured and after physical possession has been relinquished to others. "Property Damage" means (1) physical injury to or destruction of tangible property which occurs during the policy period, including the loss of use thereof at any time resulting therefrom, or (2) loss of use of tangible property which has not been physically injured or destroyed provided such loss of use is caused by an Occurrence during the policy period. "Public Officials Errors and Omissions" means any and all Wrongful Acts by an Insured arising from negligent action or inaction, mistake, misstatement, error, neglect, in adventure, or omission by the Insured in the discharge of duties with the Named Insured, except for the following: (A) Willful commission of crime or other dishonest, fraudulent or malicious act; (B) Obtaining financial gain to which the Insured is not legally entitled; (C) Faulty preparation of maps, plans, reports, surveys, designs, bid documents, or specifications; but this exclusion does not apply to these services when provided by an Insured for the Named Insured; (D) Activities in a fiduciary capacity. Notwithstanding the above exceptions, errors and omissions shall also mean (1) violations of antitrust statutes and (2) negligent ministerial acts. Exclusions do not apply to a contingent liability incurred by the board, relating to the actions of a public official for one of the above referenced wrongful acts. Page 11 INSURED'S COPY "Ultimate Net Loss" means the sums for which the Insured is legally liable as Damages by reason of a judgment or settlement made with the written consent of the claimant, the Insured and the Company, after making deductions for all recoveries for other valid and collectible insurances, excepting, however, the Insured's Retained Limit and shall include all Defense Costs. "Watercraft" means a vehicle designed for the transport of persons or property principally on water. "Wrongful Act" means any actual or alleged negligent act, error or omission, or any actual or alleged defamation. 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 to each accident. 2. Inspection and Audit The Company shall be permitted but not obligated to inspect the Insured's property and operations at any time. Neither the Company's right to make inspections not the making thereof nor any report thereon shall constitute an undertaking, on behalf of or for the benefit of the Insured or others, to determine or warrant that such property or operations are safe. The Named Insured shall maintain records of such information as is necessary for premium computation, and shall send copies of such records to the Company at the end of the Policy Period and at such times during the Policy Period as the Company may direct. The Company may examine and audit the Insured's books and records at any time during the Policy Period and extensions thereof and within three years after the final termination of this policy, as far as they relate to the subject matter of this insurance. 3. Insured's Duties in the Event of Occurrence, Claim or Suit (A) In the event of an Occurrence reasonably likely to involve the Company, written notice containing particulars sufficient to identify the Insured and also reasonably obtainable information with respect to the time, place, and Page 12 INSURED'S COPY circumstances thereof, and the names and addresses of the injured and of available witnesses, shall be given by or for the Insured to the Company or any of its authorized agents as soon as practicable. (B) The Company shall be given prompt notice, following notice to the Named Insured, of all claims which involve: (i) A serious case where, in the judgment of the Insured or its defense counsel, reserves exceed $125,000; (ii) Death; (iii) Paralysis; (iv) Loss of eye(s) or limb(s); (v) Spinal cord or brain injury; (vi) Sensory organ or nerve injury; (vii) Serious burns; (viii) Loss of work time of six months or more; (ix) Class action suits. (C) If claim is made or suit is brought against the Insured, the Insured shall immediately forward to the Company every demand, notice, summons or other process received by him or his representative. (D) The Insured shall cooperate with the Company and upon its request assist in making settlements, in the conduct of suits and in enforcing any right of contribution or indemnity against any person or organization who may be liable to the Insured because of Personal Injury or Property Damage with respect to which insurance is afforded under this policy; and the Insured shall attend hearings and trials and assist in securing and giving evidence and obtaining the attendance of witnesses. The Insured shall not, except at its own cost, voluntarily make any payment, assume any obligation or incur any expense; however, in the event that the amount of Ultimate Net Loss becomes certain either through trial court judgment or agreement among the Insured, the claimant and the Company then the Insured may pay the amount of Ultimate Net Loss to the claimant to effect settlement and, upon submission of due proof thereof, the Company shall indemnify the Insured for that part of such payment which is in excess of the retained limit, or will upon request of the Insured, make such payment to the claimant on behalf of the Insured. (E) Whenever the Insured has information from which the Insured may reasonably conclude that an Occurrence covered hereunder involves injuries or Damages, which in the event that the Insured should be held liable, is likely to involve this policy, notice shall be sent to: American International Group Technical Services, Inc. Excess Casualty Claims Department 80 Pine Street New York, New York 10005 Page 13 INSURED'S COPY As soon as practicable, provided, however, that failure to give notice of any Occurrence which at the time of its happening, did not appear to involve this policy but which at a later date, would appear to give rise to claims hereunder,shall not prejudice such claims. 4. Appeals In the event the Insured elects not to appeal a judgment in excess of the retained limit, the Company may elect to do so at its own expense, but in no event shall the liability of the Company for Ultimate Net Loss exceed the applicable amount specified in the Limits of Liability section of the Declarations plus all defense costs necessary and incident to such appeal. 5. Action Against the Company No action shall lie against the Company with respect to any one Occurrence unless, as a condition precedent hereto, the Insured shall have fully complied with all the terms of this policy, nor until the amount of the Insureds obligation to pay an amount of Ultimate Net Loss in excess of the retained limit shall have beenfinally determined either by judgment against the Insured after actual trial or by written agreement of the Insured, the claimant and the Company. Any person or organi- zation or the legal representative thereof who has secured such judgment or writ- ten agreement shall thereafter be entitled to recover under this policy to the extent of insurance afforded by this policy. Nothing contained in this policy shall give any person or organization any right to join the Company as co-defendant in any action against the Insured to determine the Insured's liability. 6. Bankruptcy and Insolvency Bankruptcy or insolvency of the Insured shall not relieve the Company of any of its obligations hereunder. 7. Other Insurance If collectible insurance with any other insurer is available to the Insured covering a loss also covered hereunder, whether on a primary, excess or contingent basis, the insurance hereunder shall be in excess of, and shall not contribute with such other insurance; provided that this clause does not apply with respect to excess insurance purchased specifically to be in excess of this policy, or to other insurance hich is intended to provide the remainder of the limit of liability stated in the Declarations of this policy when the insurance afforded under this policy provides less than 100 per cent of the limit set forth on the Declarations. Page 14 INSURED'S COPY 8. Subrogation The Company shall be subrogated to the extent of any payment hereunder to all the Insured's rights of recovery, therefore; and the Insured shall do nothing after loss to prejudice such rights and shall do everything necessary to secure such rights. Any amount so recovered shall be apportioned as follows: Any interest, including the Insured's, having paid an amount in excess of the retained limit plus the limit of liability hereunder shall be reimbursed first to the extent of actual payment. If any balance then remains unpaid, it shall be applied to reimburse the Insured. The expenses of all such recovery proceedings shall be apportioned in the ratio of the respective recoveries. If there is no recovery in proceedings conducted solely by the Insured, it shall bear the expenses thereof. 9. Changes Notice to any agent or knowledge possessed by any agent or by any other person shall not effect a waiver or change in any part of this policy or stop the Company from asserting any right under the terms of this policy, nor shall the terms of this policy be waived or changed , except by endorsement issued to form a part of this policy. 10. Assignment Assignment of interest under this policy shall not bind the Company until its con-sent is endorsed hereon; however, if the Named Insured shall die, such insurance as is afforded by this policy shall apply (A) to the Named Insured's legal representative, as the Named Insured, but only while acting within the scope of his duties as such and (B) with respect to the property of the Named Insured to the personhaving temporary custody thereof as Insured, but only until the appointment and qualification of the legal representative. 11. Maintenance of Retained Limit The amount stated in Item 3b of the Declarations as the Retained Limit applicable 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 11 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 Retained Limit, including, but not limited to the insolvency, bankruptcy, liquidation or failure of any Page 15 INSURED'S COPY 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. 12. Cancellation This policy may be canceled by the Named Insured by surrender thereof to the Company or any of its authorized agents or by mailing to the Company written notice stating when thereafter the cancellation shall be effective. The policy may be canceled by the Company by mailing to the Named Insured at the address shown in this policy written notice stating when not less than ninety days thereafter such cancellation shall be effective. Provided that the Insured fails to discharge when due any of its obligations in connection with the payment of premium for the policy or any installment thereof, whether payable directly to the Company or its agent or indirectly under a premium finance plan or extension of credit, this policy may be canceled by the Company by mailing to the Named Insured at the address shown in the policy, written notice stating when not less than ten days thereafter such cancellation shall be effective. The mailing of notice as aforesaid shall be sufficient proof of notice. The time of surrender or effective date and hour of cancellation stated in the notice shall become the end of the Policy Period. Delivery of such written notice either by the Named Insured or by the Company shall be equivalent to mailing. If the Named Insured cancels, earned premium shall be computed in accordance with the customary short rate table and procedure. If the Company cancels, earned premium shall be computed prorata. Premium adjustment may be made either at the time cancellation is effective or as soon as practicable after cancellation becomes effective, but payment or tender of unearned premium is not a condition of cancellation. 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 of 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. 13. First Named Insured The Insured first named in Item 1. in the Declarations is authorized to act on behalf of all Named Insureds and other Insureds with respect to the giving and receiving of notice of cancellation and to receiving any return premium that may Page 16 INSURED'S COPY become payable under this policy. The Insured first named in Item 1. in the Declarations is responsible for the payment of all premiums, but the other Named Insureds jointly and severally agree to make such premium payments in full if the Insured first named in Item 1. fails to pay the amount due within thirty (30) days after the company gives a written demand for payment to the Insured first named in Item 1. 14. Extended Reporting Period In the event of cancellation or non-renewal by the Company for any reason except non-payment of premium, the Named Insured, upon payment of an additional premium of not more than 200% 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 thirty-six (36) months, but any such Claim must arise from an Occurrence prior to the date on which the Extended Reporting Period commenced and after the Retroactive Date. The Insured must make a written request for an Extended Reporting Period within 30 days after the expiration of the policy period and pay the additional premium within 30 days after said request. The Extended Reporting Period Endorsement will not take effect unless the aitional premium is paid when due. If that premium is paid when due, the endorsement may not be cancelled. The Extended Reporting Period will not reinstate or increase the Limits of Liability or extend the policy period. IN WITNESS WHEREOF, we have caused this policy to be signed by its President and Secretary and signed on the declarations page by a duly auhtorized representative erecta 7/ /r4.44€ 141144s4 /r, 7r;ror Secretary President Page 17 INSURED'S COPY ENDORSEMENT#1 THIS ENDORSEMENT, EFFECTIVE 12:01 A.M. JULY 01, 1995 FORMS A PART OF POLICY NO. CLM 773-90-71 ISSUED TO COLORADO COUNTIES CASUALTY& PROPERTY POOL ET AL BY AMERICAN INTERNATIONAL SPECIALTY LINES INSURANCE COMPANY PARTICIPATING MEMBER COUNTIES ENDORSEMENT In consideration of the premium charged, it is agreed that the PARTICIPATING MEMBER COUNTIES hereunder are as follows: ALAMOSA GRAND PARK ARCHULETA GUNNISON PHILLIPS BACA HINSDALE PITKIN BENT HUERFANO PUEBLO CHAFFEE JACKSON RIO BLANCO CHEYENNE KIOWA RIO GRANDE CLEAR CREEK KIT CARSON ROUTT CONEJOS LAKE SAGUACHE COSTILLA LA PLATA SAN JUAN CROWLEY LAS ANIMAS SEDGWICK DELTA LINCOLN SUMMIT DOLORES LOGAN TELLER EAGLE MINERAL WASHINTON ELBERT MONTROSE WELD FREMONT MORGAN YUMA GARFIELD OTERO GILPIN OURAY All other terms and conditions of this policy remain unchanged. DATED: COLORAD COUNTIES CASUALTY AND PROPERTY POOL AND PARTICIPATING MEMB C UNTIE BY ITS: Ands,/ ere“--- j6, Endt.#1 (07/26/95)scm Authorized Representative CO-ENDTM INSURED'S COPY ENDORSEMENT#2 THIS ENDORSEMENT, EFFECTIVE 12:01 A.M. JULY 01, 1995 FORMS A PART OF POLICY NO. CLM 773-90-71 ISSUED TO COLORADO COUNTIES CASUALTY& PROPERTY POOL ET AL BY AMERICAN INTERNATIONAL SPECIALTY LINES INSURANCE COMPANY EMPLOYEE BENEFITS LIABILITY ENDORSEMENT In consideration of the premium charged 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 use 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; Page 1 of 2 INSURED'S COPY ENDORSEMENT#2 THIS ENDORSEMENT, EFFECTIVE 12:01 A.M. JULY 01, 1995 FORMS A PART OF POLICY NO. CLM 773-90-71 ISSUED TO COLORADO COUNTIES CASUALTY& PROPERTY POOL ET AL BY AMERICAN INTERNATIONAL SPECIALTY LINES INSURANCE COMPANY EMPLOYEE BENEFITS LIABILITY ENDORSEMENT (Cont.' (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 to 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: COLORADO COUNTIES CASUALTY AND PROPERTY POOL AND PARTICIPATING MEMBER COUNTIES /'- Endt. #2 (07/26/95)scm Authorized Representative CO-ENDT.#2 Page 2 of 2 INSURED'S COPY ENDORSEMENT#3 THIS ENDORSEMENT, EFFECTIVE 12:01 A.M. JULY 01, 1995 FORMS A PART OF POLICY NO. CLM 773-90-71 ISSUED TO COLORADO COUNTIES CASUALTY& PROPERTY POOL ET AL BY AMERICAN INTERNATIONAL SPECIALTY LINES INSURANCE COMPANY NON-OWNED AIRCRAFT ENDORSEMENT In consideration of the premium charged, it is 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 3. 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 a damage to the aircraft or any consequential loss arising therefrom. (d) when the aircraft is 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: COLO COUNTIES CASUALTY AND PROPERTY POOL AND PARTICIPATING MEMBE UNTIES BY: ITS: Endt. #3 (07/26/95)scm Authorized Representative CO-ENDT.#3 INSURED'S COPY ENDORSEMENT#4 (REVISED) THIS ENDORSEMENT, EFFECTIVE 12:01 A.M. JULY 01, 1995 FORMS A PART OF POLICY NO. CLM 773-90-71 ISSUED TO COLORADO COUNTIES CASUALTY& PROPERTY POOL ET AL BY AMERICAN INTERNATIONAL SPECIALTY LINES INSURANCE COMPANY WATERCRAFT LIABILITY ENDORSEMENT In consideration of the premium charged, it is hereby understood and agreed that EXCLUSION L. does not apply with respect to the ownership, maintenance or use, including loading and unloading of a 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: COLORADO COUNTIES CASUALTY AND PROPERTY OL AND PARTICIPATING MEMBER TIC BY: ITS: rsi....,s>avA7aiL Endt.#4 "Revised° (08/17/95)scm Authorized Representative CO-ENDT.#4 INSURED'S COPY ENDORSEMENT#5 THIS ENDORSEMENT, EFFECTIVE 12:01 A.M. JULY 01, 1995 FORMS A PART OF POLICY NO. CLM 773-90-71 ISSUED TO COLORADO COUNTIES CASUALTY& PROPERTY POOL ET AL BY AMERICAN INTERNATIONAL SPECIALTY LINES INSURANCE COMPANY NON-WAIVER OF IMMUNITY OR MAXIMUM AMOUNT RECOVERABLE UNDER THE COLORADO GOVERNMENTAL IMMUNITY ACT OR OTHER LAW In consideration of the premium charged, 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: COLORADO OUNTIES CASUALTY AND PROPERTY OOL AND PARTICIPATING MEMBE NTIES BY: �1 �� ITS: 11D�`�'�.v a7,ei>nk Endt.#5 (07/26/95)scm Authorized Representative CO-ENDT.#5 INSURED'S COPY ENDORSEMENT#6 THIS ENDORSEMENT, EFFECTIVE 12:01 A.M. JULY 01, 1995 FORMS A PART OF POLICY NO. CLM 773-90-71 ISSUED TO COLORADO COUNTIES CASUALTY& PROPERTY POOL ET AL BY AMERICAN INTERNATIONAL SPECIALTY LINES INSURANCE COMPANY UNINSURED/UNDERINSURED MOTORISTS COVERAGE In consideration of the premium charged, 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: COLORA COUNTIES CASUALTY AND PROPERTY OOL AND PARTICIPATING MEMBE NTIES BY: ITS: Ill NI Endt. #6 (07/26/95)scm Authorized Representative CO{NDTA6 INSURED'S COPY ENDORSEMENT#7 THIS ENDORSEMENT, EFFECTIVE 12:01 A.M. JULY 01, 1995 FORMS A PART OF POLICY NO. CLM 773-90-71 ISSUED TO COLORADO COUNTIES CASUALTY& PROPERTY POOL ET AL BY AMERICAN INTERNATIONAL SPECIALTY LINES INSURANCE COMPANY RETROACTIVE DATE ENDORSEMENT In consideration of the premium charged, 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: COLO COUNTIES CASUALTY AND PROPERTY POOL AND PARTICIPATING MEMBE NTIES BY: ITS: Endt. #7 (07/26/95)scm Authorized Representative CO-ENDT.A7 INSURED'S COPY ENDORSEMENT#8 THIS ENDORSEMENT, EFFECTIVE 12:01 A.M. JULY 01, 1995 FORMS A PART OF POLICY NO. CLM 773-90-71 ISSUED TO COLORADO COUNTIES CASUALTY& PROPERTY POOL ET AL BY AMERICAN INTERNATIONAL SPECIALTY LINES INSURANCE COMPANY COLORADO-SPECIAL AMENDATORY ENDORSEMENT (Per H.B. 1204). In consideration of the premium charged, 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: COLORADO OUNTIES CASUALTY AND PROPERTY P OL AND PARTICIPATING MEMBER TIES BY: ITS: /+I,v/s )a, 7' t Endt. #8 (07/26/95)scm Authorized Representative CO-ENDT.#8 INSURED'S COPY ENDORSEMENT#9 THIS ENDORSEMENT, EFFECTIVE 12:01 A.M. JULY 01, 1995 FORMS A PART OF POLICY NO. CLM 773-90-71 ISSUED TO COLORADO COUNTIES CASUALTY& PROPERTY POOL ET AL BY AMERICAN INTERNATIONAL SPECIALTY LINES INSURANCE COMPANY PERSONAL INJURY PROTECTION ENDORSEMENT In consideration of 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 $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: COLORA COUNTIES CASUALTY AND PROPERTY OOL AND PARTICIPATING MEMBE NTIES BY: ITS: Endt. #9 (07/26/95)scm Authorized Representative CC-ENDT.#s INSURED'S COPY ENDORSEMENT#10 THIS ENDORSEMENT, EFFECTIVE 12:01 A.M. JULY 01, 1995 FORMS A PART OF POLICY NO. CLM 773-9041 ISSUED TO COLORADO COUNTIES CASUALTY& PROPERTY POOL ET AL BY AMERICAN INTERNATIONAL SPECIALTY LINES INSURANCE COMPANY COLORADO COUNTIES AMENDATORY ENDORSEMENT DISCLOSURE FORM CLAIMS-MADE POLICY-IMPORTANT NOTICE TO POLICYHOLDER 'CLAIMS-MADE BODILY INJURY. PROPERTY DAMAGE, AND PUBLIC OFFICIALS ERRORS AND OMISSIONS COVERAGEI THIS DISCLOSURE FORM IS NOT YOUR POLICY. IT MERELY DESCRIBES SOME OF THE MAJOR FEATURES OF OUR CLAIMS MADE POLICY FORM. READ YOUR POLICY CAREFULLY TO DETERMINE RIGHTS, DUTIES, AND WHAT IS AND IS NOT COVERED. ONLY THE PROVISIONS OF YOUR POLICY DETERMINE THE SCOPE OF YOUR INSURANCE PROTECTION. Your policy is a claims-made policy. It applies only to PERSONAL INJURY, PROPERTY DAMAGE OR PUBLIC OFFICIALS ERRORS AND OMISSIONS that occur 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 There is no difference in the kinds of PERSONAL INJURY, PROPERTY DAMAGE AND PUBLIC OFFICIALS ERRORS AND OMISSIONS 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, PROPERTY DAMAGE, and PUBLIC OFFICIALS ERRORS AND OMISSIONS that OCCUR 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, PROPERTY DAMAGE, AND PUBLIC OFFICIALS ERRORS AND OMISSIONS, 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 the Claims Management Department of Colorado Counties Casualty and Property Pool (CAPP). Under most circumstances, a CLAIM is considered made when it is received and recorded by the Claims Management Department of CAPP, but sometimes, a CLAIMS may be deemed made at an earlier time. This can happen when another CLAIM for the same PERSONAL INJURY, PERSONAL DAMAGE, or PUBLIC OFFICIALS ERRORS AND OMISSIONS has already been made, or when the CLAIM is received and recorded during the EXTENDED REPORTING PERIOD as described in this disclosure statement. Page 1 of 3 INSURED'S COPY ENDORSEMENT#10 (CONT.) THIS ENDORSEMENT, EFFECTIVE 12:01 A.M. JULY 01, 1995 FORMS A PART OF POLICY NO. CLM 773-90-71 ISSUED TO COLORADO COUNTIES CASUALTY& PROPERTY POOL ET AL BY AMERICAN INTERNATIONAL SPECIALTY LINES INSURANCE COMPANY PRINCIPLE BENEFITS The principle benefits and coverage 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 CONDITION (3) INSURED'S DUTIES IN THE EVENT OF OCCURRENCE, CLAIM OR SUIT. 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 them carefully and consult your agent about any questions you might have. RENEWALS, TAILS AND EXTENDED REPORTING PERIODS You 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, PROPERTY DAMAGE, or PUBLIC OFFICIALS ERRORS AND OMISSIONS 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, PROPERTY DAMAGE, or PUBLIC OFFICIALS ERRORS AND OMISSIONS no matter when the PERSONAL INJURY, PROPERTY DAMAGE, or PUBLIC OFFICIALS ERRORS AND OMISSIONS occurred. But if previous "occurrence" type insurance also applied to the PERSONAL INJURY, PROPERTY DAMAGE, or PUBLIC OFFICIALS ERRORS AND OMISSIONS your "claims-made° policy's EXTENDED REPORTING PERIOD guarantees continuity of coverage if you are offered a renewal or replacement policy with a later RETROACTIVE DATE than one in your current policy. Page 2 of 3 INSURED'S COPY ENDORSEMENT#10 (CONT.) THIS ENDORSEMENT, EFFECTIVE 12:01 A.M. JULY 01, 1995 FORMS A PART OF POLICY NO. CLM 773-90-71 ISSUED TO COLORADO COUNTIES CASUALTY& PROPERTY POOL ET AL BY AMERICAN INTERNATIONAL SPECIALTY LINES INSURANCE COMPANY EXTENDED REPORTING PERIOD OR "TAIL" When applicable, the EXTENDED REPORTING PERIOD 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, PROPERTY DAMADE, or PUBLIC OFFICIALS ERRORS AND OMISSIONS 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, PROPERTY DAMAGE, or PUBLIC OFFICIALS ERRORS AND OMISSIONS. In any these circumstances, this POLICY provides you with an EXTENDED REPORTING PERIOD. The EXTENDED REPORTING PERIOD CONDITION -This POLICY guarantees under certain circumstances that you may purchase an amendment providing an EXTENDED REPORTING PERIOD for thirty six (36) 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, PROPERTY DAMAGE, or PUBLIC OFFICIALS ERRORS AND OMISSIONS occurred before the end of the POLICY PERIOD, but not before the policy's RETROACTIVE DATE. Claims made under this EXTENDED REPORTING PERIOD, are subject to a LIMIT OF LIABILITY which is an extension of the limits of your original policy. To obtain this "tail", you must request the amendment in writing within thirty (30) days 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: COLORAD COUNTIES CASUALTY AND PROPERTY OOL AND PARTICIPATING MEMBE NTIES BY: ITS: Endt.#10 (07/26/95)scm Authorized Representative CO-ENDT#10 Page 3 of 3 INSURED'S COPY ENDORSEMENT#11 THIS ENDORSEMENT, EFFECTIVE 12:01 A.M. JULY 01, 1995 FORMS A PART OF POLICY NO. CLM 773-90-71 ISSUED TO COLORADO COUNTIES CASUALTY& PROPERTY POOL ET AL BY AMERICAN INTERNATIONAL SPECIALTY LINES INSURANCE COMPANY COVERAGE C. PREMISES MEDICAL PAYMENTS 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 your operations; provided that: a) the accident takes place in the coverage territory and during the policy period; b) the expenses are incurred and reported to us within one year of the date of the accident; and c) the injured person submits to examination, at our expense, by physicians of our choice as often as we reasonably require. b. We will make these payments regardless of fault. 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. Page 1 of 2 INSURED'S COPY ENDORSEMENT#11 THIS ENDORSEMENT, EFFECTIVE 12:01 A.M. JULY 01, 1995 FORMS A PART OF POLICY NO. CLM 773-90-71 ISSUED TO COLORADO COUNTIES CASUALTY& PROPERTY POOL ET AL BY AMERICAN INTERNATIONAL SPECIALTY LINES INSURANCE COMPANY COVERAGE C. PREMISES MEDICAL PAYMENTS (Cont.1 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. 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: COLOR COUNTIES CASUALTY AND PROPERTY OOL AND PARTICIPATING MEMBE C UNTIES BY: ITS: Mi Endt. #11 " ' �-' 2.4. (07/26/95)scm Authorized Representative CO-ENDT.It11 Page 2 of 2 INSURED'S COPY ENDORSEMENT#12 THIS ENDORSEMENT, EFFECTIVE 12:01 A.M. JULY 01, 1995 FORMS A PART OF POLICY NO. CLM 773-90-71 ISSUED TO COLORADO COUNTIES CASUALTY& PROPERTY POOL ET AL BY AMERICAN INTERNATIONAL SPECIALTY LINES INSURANCE COMPANY AUTO MEDICAL PAYMENTS COVERAGE ENDORSEMENT 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 "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. EXCLUSION 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 employee if not entitled to workers' 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. Page 1 of 2 INSURED'S COPY ENDORSEMENT#12 THIS ENDORSEMENT, EFFECTIVE 12:01 A.M. JULY 01, 1995 FORMS A PART OF POLICY NO. CLM 773-90-71 ISSUED TO COLORADO COUNTIES CASUALTY& PROPERTY POOL ET AL BY AMERICAN INTERNATIONAL SPECIALTY LINES INSURANCE COMPANY AUTO MEDICAL PAYMENTS COVERAGE ENDORSEMENT(Cont.} D. LIMIT OF INSURANCE Regardless of the number of covered "autos", "insureds", 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. 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. ADDITONAL 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: COLO OUNTIES CASUALTY AND PRO RTY OOL AND PARTICIPATING MEMBE NTIES BY: r/ ITS: Endt. #12 ' 13- `'1 (07/26/95)scm Authorized Representative CO-ENDT.1N3 Page 2 of 2 INSURED'S COPY ENDORSEMENT#13 THIS ENDORSEMENT, EFFECTIVE 12:01 A.M. JULY 01, 1995 FORMS A PART OF POLICY NO. CLM 773-90-71 ISSUED TO COLORADO COUNTIES CASUALTY& PROPERTY POOL ET AL BY AMERICAN INTERNATIONAL SPECIALTY LINES INSURANCE COMPANY SERVICE OF SUIT It is hereby understood and agreed that in the event of failure of American International Specialty Lines Insurance Company (hereinafter called the "Company") to pay any amount claimed to be due hereunder, the Company, at the request of the Insured, will submit to the jurisdiction of a court of competent jurisdiction within the United States. Nothing in this condition constitutes or should be understood to constitute a waiver of the Company's rights to commence an action in any court of competent jurisdiction in the United States to remove an action to a United States District Court or to seek a transfer of a case to another court as permitted by the laws of the United States or of any state in the United States. It is further agreed that service of process in such suit may be upon Counsel, Legal Department, American International Specialty Lines Insurance Company, C/O American International Surplus Lines Agency, Inc., Harborside Financial Center, 401 Plaza 3, Jersey City, NJ 07311, or his or her representative, and that in any suit instituted against the Company upon this contract, the Company will abide by the final decision of such court or of any appellate court in the event of any appeal. Further, pursuant to any statute of any state, territory, or district of the United States which makes provision therefor, the Company hereby designates the Superintendent, Commissioner, or Director of Insurance, other officer specified for that purpose in the statute, or his or her successor or successors in the office as its true and lawful attorney upon whom may be served any lawful process in any action, suit, or proceeding instituted by or on behalf of the Insured or any beneficiary hereunder arising out of this contract of insurance, and hereby designates the above named Counsel as the person to whom the said officer is authorized to mail such process or a true copy thereof. All other terms and conditions of this policy remain unchanged. DATED: COLORA COUNTIES CASUALTY AND PROPERTY OOL AND PARTICIPATING MEMBER NTIES BY: /�� D ITS: AD#4 G am "e Endt. #13 (07/26/95)scm Authorized Representative CO-ENDT.#73 INSURED'S COPY ENDORSEMENT#14 THIS ENDORSEMENT, EFFECTIVE 12:01 A.M. JULY 01, 1995 FORMS A PART OF POLICY NO. CLM 773-90-71 ISSUED TO COLORADO COUNTIES CASUALTY& PROPERTY POOL ET AL BY AMERICAN INTERNATIONAL SPECIALTY LINES INSURANCE COMPANY MINIMUM EARNED PREMIUM It is understood and agreed that in the event of cancellation of this policy by or at the direction of the insured, the Company shall retain a Minimum Earned Premium of $117,500.00 It is further agreed that the provision regarding cancellation by the insured is amended to read: "If the insured cancels this policy, earned premium will be computed in accordance with the customary short-rate table and procedure, or the Minimum Eamed Premium stated herein, whichever is greater". All other terms and conditions of this policy remain unchanged. v Endt. #14 v "'"' �e . 1—_t;2 (07/26/95)scm Authorized Representative INSURED'S COPY INTRODUCTION TheMild — This policy protects against a variety of losses. There are also some restrictions. We've Policy Number: GP09100074 written this policy in plain, easy-to-understand English. We encourage you to read it carefully DALLAS to determine what is and what is not covered, BROOKHOLLOW ONE as well as the rights and duties of those 2301 EAST LAMAR BLVD. , STE 400 protected. ARLINGTON TX 76006-7472 In return for your premium, we'll provide the Your policy is composed of General Rules, an protection stated in this policy. explanation of What To Do If You Have A Loss, one or more Coverage Summaries, and one or We, us, our and ours mean St. Paul Fire and Marine more Insuring Agreements explaining your Insurance Company. We're a capital stock coverage. It may also include one or more company located in St. Paul, Minnesota. endorsements. Endorsements are documents that change your policy. The Policy Forms List The words you, your and yours mean the shows all the forms included when this policy insured named here, which is a/an begins. GOVERNMENT ENTITY One of our authorized representatives will also COLORADO CO. CASUALTY & PROPERTY POOL countersign the policy. (SEE ENDORSEMENT A) 1177 GRANT STREET This policy will begin on 07/01/95 DENVER CO 80203 and will continue until 07/01/96 Your former policy number: GF03400003 is automatically replaced Your premium for the policy period shown is: $198,843. However, please refer to the Premiums section of the General Rules to see how final premiums are determined. Our authorized representative is: 0506192 MARSH & MCLENNAN INC INDEPENDENCE PLAZA rest • 1050 17TH STREET STE 900 `;,�~�•DENVER CO 80265 • Authorized Representative Date Secretary Processing Date 06/30/95 12:30 001 40800 Ed.5-87 Printed in U.S.A. Introduction ®St.Paul Fire and Marine Insurance Co.1984 All Rights Reserved Page 1 TMStmuI Page 2 ©St.Paul Fire and Marine Insurance Co.1984 All Rights Reserved TheStt9uI Named Insured Endorsement It is hereby understood and agreed that the Named Insured is as follows: 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 Crowley 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 A to the Introduction Name of Insured Policy Number GP09100074 Effective Date 07/01/95 COLORADO CO. CASUALTY & PROPERTY POOL Processing Date 06/30/95 12:30 001 40502 Ed.1-80 Printed in U.S.A. Customized Form ©St.Paul Fire and Marine Insurance Co.1980 All Rights Reserved Page 1 TMStF9ul Page 2 ©St.Paul Fire and Marine Insurance Co.1980 All Rights Reserved POLICY FORM LIST TheSUblll Here's a list of all forms included in your policy, on the date shown below. These forms are listed in the same order as they appear in your policy. Form Ed. Title Nbr Date Introduction - St. Paul Fire And Marine Insurance Company 40800 05-87 Policy Form List 40705 05-84 Named Insured Endorsement 40502 01-80 Coverage Summary 40502 01-80 Insuring Agreement 40502 01-80 Transit Extension Insuring Clause 40502 01-80 Extra Expense - 40/80/100% of Limit 40502 01-80 Pollution Exclusion Endorsement 40502 01-80 Extension of Coverage Endorsement 40502 01-80 Other Terms and Conditions 40502 01-80 Crime Protection Coverage Summary 45015 05-92 Robbery and Safe Burglary Protection 45013 05-87 Money and Securities Protection 45012 05-87 Forgery or Alteration Protection 45016 05-87 Blanket Employee Dishonesty Protection 45010 05-87 Crime Protection Self-Insured Retention Endorsement 40502 01-80 NAME OF INSURED: Colorado Co. Casualty & Property Pool PAGE 1 OF 1 POLICY NO: GP09100074 EFFECTIVE DATE: 07/01/95 FORM 40705/ REV. 05-84 TheStaid COVERAGE SUMMARY Named 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 Ill. 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 DATE: AGENT NAME OF INSURED: Colorado Co. Casualty & Property Pool PAGE 1 OF 1 POLICY NO: GP09100074 EFFECTIVE DATE: 07/01/95 FORM 40502 TheSImuI INSURING AGREEMENT 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 Colorado Counties Casualty & Property Pool Claims Management Depari- This Service Organization shall perform the following duties: n e„-1" 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. NAME OF INSURED: Colorado Co. Casualty & Property Pool PAGE.1 OF 9 POLICY NO: GP09100074 EFFECTIVE DATE: 07/01/95 FORM 40502 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; b) Interest charges on any loan to offset impaired collections pending repayment of such sums made uncollectible by such loss or damage: NAME OF INSURED: Colorado Co. Casualty & Properly Pool PAGE 2 OF 9 POLICY NO: GP09100074 EFFECTIVE DATE: 07/01/95 FORM 40502 c) Collection expense in excess of normal collection caused and made necessary because of such loss or damage; dl 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 Al L PROPFRTY. 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. 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. NAME OF INSURED: Colorado Co. Casually & Property Pool PAGE 3 OF 9 POLICY NO: GP09100074 EFFECTIVE DATE: 07/01/95 FORM 40502 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. 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. NAME OF INSURED: Colorado Co. Casualty & Property Pool PAGE 4 OF 9 POLICY NO: GP09100074 EFFECTIVE DATE: 07/01/95 FORM 40502 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. NAME OF INSURED: Colorado Co. Casualty & Property Pool PAGE 5 OF 9 POLICY NO: GP09100074 EFFECTIVE DATE: 07/01/95 FORM 40502 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 Policy may be canceled by the Insured by mailing to the Company written notice stating when thereafter such cancellation shall be effective. This Policy may be canceled 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 ninety days thereafter such cancellation shall be effective. The mailing of notice as aforesaid shall be sufficient proof of notice, and 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 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. NAME OF INSURED: Colorado Co. Casualty & Properly Pool PAGE 6 OF 9 POLICY NO: GP09100074 EFFECTIVE DATE: 07/01/95 FORM 40502 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. 7. CURRENCY: The premium and losses under this Insurance are payable in United States currency. Payment of premium shall be made to Marsh & McLennan, Inc. 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 Colorado Counties Casualty & Property Pool C/aims Management Department 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 Colorado Counties Casualty & Property Pool Claims Management Department and acceptance by Underwriters of satisfactory proof of interest and loss. NAME OF INSURED: Colorado Co. Casualty & Property Pool PAGE 7 OF 9 POLICY NO: GP09100074 EFFECTIVE DATE: 07/01/95 FORM 40502 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. 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. NAME OF INSURED: Colorado Co. Casualty & Properly Pool PAGE 8 OF 9 POLICY NO: GP09100074 EFFECTIVE DATE: 07/01/95 FORM 40502 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 DATED: ST. PAUL FIRE & MARINE INSURANCE CO. BY Authorized Representative NAME OF INSURED: Colorado Co. Casualty & Property Pool PAGE 9 OF 9 POLICY NO: GP09100074 EFFECTIVE DATE: 07/01/95 FORM 40502 meStPaul 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. 7. Loss or damage caused by breakdown or derangement of refrigerating units. NAME OF INSURED: Colorado Co. Casualty & Property Pool PAGE 1 OF 2 POLICY NO: GP09100074 EFFECTIVE DATE: 07/01/95 FORM 40502 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 sumjs) 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. NAME OF INSURED: Colorado Co. Casualty & Property Pool PAGE 2 OF 2 POLICY NO: GP09100074 EFFECTIVE DATE: 07/01/95 FORM 40502 The&pall 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. Fxtra Fxoense• 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. Jnterruotion 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. NAME OF INSURED: Colorado Co. Casualty & Property Pool PAGE 1 OF 2 POLICY NO: GP09100074 EFFECTIVE DATE: 07/01/95 FORM 40502 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. NAME OF INSURED: Colorado Co. Casualty & Property Pool PAGE 2 OF 2 POLICY NO: GP09100074 EFFECTIVE DATE: 07/01/95 FORM 40502 ThemuI 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. NAME OF INSURED: Colorado Co. Casualty & Property Pool PAGE 1 OF 1 POLICY NO: GP09100074 EFFECTIVE DATE: 07/01/95 FORM 40502 meStPaul 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 825,000 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. NAME OF INSURED: Colorado Co. Casually & Property Pool PAGE 1 OF 1 POLICY NO: GP09100074 EFFECTIVE DATE: 07/01/95 FORM 40502 TheSIMS 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 this 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. NAME OF INSURED: Colorado Co. Casualty & Property Pool PAGE 1 OF 4 POLICY NO: GP09100074 EFFECTIVE DATE: 07/01/95 FORM 40502 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. NAME OF INSURED: Colorado Co. Casualty & Property Pool PAGE 2 OF 4 POLICY NO: GP09100074 EFFECTIVE DATE: 07/01/95 FORM 40502 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 canceled by the Insured by mailing to the Company written notice stating when thereafter such cancellation shall be effective. This Policy may be canceled 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 ninety days thereafter such cancellation shall be effective. The mailing of notice as aforesaid shall be sufficient proof of notice, and 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 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. NAME OF INSURED: Colorado Co. Casualty & Property Pool PAGE 3 OF 4 POLICY NO: GP09100074 EFFECTIVE DATE: 07/01/95 FORM 40502 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. Provisions Required by Law to be Stated in this Policy: - "This Policy is issued under and in pursuance of the laws of the State of Minnesota, relating to Guaranty Surplus and Special Reserve 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 Authorized Representative NAME OF INSURED: Colorado Co. Casualty & Property Pool PAGE 4 OF 4 POLICY NO: GP09100074 EFFECTIVE DATE: 07/01/95 FORM 40502 CRIME PROTECTION COVERAGE SUMMARY The Maul This Coverage Summary shows the limits of coverage that apply to your Crime Protection. Limits Of Coverage Robbery And Safe Burglary Protection Coverage applies only when a limit of Robbery inside your coverage is shown. building limit $150,000. Safe burglary limit $150,000. Blanket Employee Dishonesty Protection Loss outside your Limit of coverage $150,000. building limit $150,000. Deductible $ N/A Deductible $ N/A Forgery Or Alteration Protection Blanket Public Employee Dishonesty Protection Limit of coverage $ Limit of coverage $ Deductible $ Deductible $ Money And Securities Protection Extortion Protection Loss inside your Limit of coverage $ building limit $150,000. Loss outside your Your participation percentage % building limit $150,000. Deductible $ Deductible $ N/A Premises Theft And Outside Robbery Computer Fraud Protection Theft inside your Limit of coverage $ building limit $ Robbery outside your Deductible $ building limit $ Deductible $ Guests Safe Deposit Box Liability Protection Each event limit $ Premises Burglary Protection Limit of coverage $ Guests Property Liability Protection Deductible $ Each event limit $ Each guest limit $ Named Endorsement Table Important Note: Only endorsements that must have certain information shown for them to apply are named in this table. The required information follows the name of each such endorsement. Other endorsements may apply. If so, they're listed on the Introduction. Crime Protection Self-Insured Retention Endorsement: Blanket Employee Dishonesty Protection Retention --- $150,000. Robbery & Safe Burglary Protection Retention --- $150,000. Forgery & Alteration Protection Retention --- $150,000. Money and Securities Protection Retention --- $150,000. Name of Insured Policy Number 01)09100074 Effective Date Colorado Co. Casualty & Property Pool Processing Date 07/01/95 45015 Rev.5-92 Printed in U.S.A. Coverage Summary cSt.Paul Fire and Marine Insurance Co.1992 All Rights Reserved Page 1 of 2 Page 2 of 2 oSt.Paul Fire and Marine Insurance Co.1992 All Rights Reserved mestibul CRIME PROTECTION SELF-INSURED RETENTION ENDORSEMENT This endorsement changes the following protection agreements and endorsements: Blanket Employee Dishonesty Protection Important note: This endorsement Robbery And Safe Burglary Protection adds a self-insured retention that is Forgery Or Alteration Protection included in the limits of coverage. Money And Securities Protection How Coverage Is Changed There are two changes which are explained below. 1. The following replaces the Deductible section in each of the agreements shown above. This change limits coverage. Self-Insured Retention The self-insured retentions shown below and the information contained in this section fix the amount of loss or loss adjustment expenses for which you'll be responsible. Blanket Employee Dishonesty Self-Insured Retention: $ 150.000. Robbery And Safe Burglary Self-Insured Retention: $ 150.000 Forgery or Alteration Self-Insured Retention: $ 150.000. Money And Securities Self-Insured Retention: $ 150.000. You'll be responsible for these amounts for the combined total of all losses or loss adjustment expenses that results from any one covered event. Loss adjustment expenses means the reasonable fees, costs and expenses that: .are incurred by you; and .result directly from the adjustment of a covered loss. Loss adjustment expenses includes reasonable and necessary expenses incurred to reduce the loss or protect covered property from further damage. Name of Insured Policy Number GP09100074 Effective Date 07/01/95 Colorado Co Casualty&Property Pool Processing Date 40502 Ed. 1-80 Customized Form ©St. Paul Fire and Marine Insurance Co. 1980 Page 1 of 2 But we won't consider any of the following to be loss adjustment expenses: •Fees, costs, or expenses for appraisals. .Expenses and salaries or wages of you or any of your employees or staff, including any attorneys employed or hired by you. •Fees and expenses of independent adjusters hired by you. .Expenses for claim handling services provided by others under a written contract or agreement with you. •Fees, costs, or expenses incurred by you as the result of appeals, arbitration or alternative dispute resolution proceedings. 2. The following is added to the Limits of Coverage section in each of the agreements shown above. This change limits coverage. The limits of coverage include amounts for loss and loss adjustment expense paid under the self-insured retention. Other Terms All other terms of your policy remain the same. Name of Insured Policy Number GP09100074 Effective Date 07/01/95 Colorado Co. Casualty&Pr perjy Pool Processing Date 40502 Ed. 1-80 Customized Form ©St.Paul Fire and Marine Insurance Co. 1980 Page 2 of 2 BLANKET EMPLOYEE DISHONESTY PROTECTION T1°St uI We've designed this agreement to protect you and your business against losses resulting directly from employee dishonesty. Of course there are some limitations which are explained later in this agreement. Table of Contents Page Financial benefit doesn't include salaries, commissions, fees, bonuses, promotions, What This Agreement Covers 1 awards, profit sharing, pensions or other When This Agreement Covers 2 employee benefits earned in the normal course Where This Agreement Covers 2 of employment. Limit Of Coverage 2 Deductible 2 Employee means any individual: Exclusions -Losses We Won't Cover 2 •in your service and for 30 days after termi- How We'll Figure Your Loss 3 nation of service; Other Rules 3 •whom you compensate directly by salary, Other Insurance 4 wages or commissions; and •whom you have the right to direct and control while performing services for you; or What This Agreement Covers *employed by an employment contractor while that person is subject to your direction and We'll pay for loss of or damage to, money, control and performing services for you. But securities and other property that results this won't include any such person while having directly from employee dishonesty. care and custody of property outside the prem- ises. Money means: •currency, coins and bank notes in current use We won't consider any of the following to be an and having a face value; and employee: •travelers checks, registered checks and money "Agent, broker, factor, commission merchant, orders held for sale to the public. consignee, independent contractor or represen- tative of the same general character; or Securities mean negotiable and non-negotia- •Director or trustee, except while performing ble instruments or contracts representing either acts coming within the scope of the usual duties money or other property and includes: of an employee. *Tokens, tickets, revenue and other stamps in current use, whether represented by actual Ownership of property. The property covered stamps or unused value in a meter; and under this agreement is limited to: 'Evidences of debt issued in connection with 'property that you own or hold; or credit or charge cards not issued by you. *property for which you're legally liable. Securities don't include money. However, this insurance is for your benefit only. It provides no rights or benefits to any Other property means any tangible property other person or organization. of value other than money and securities. Consolidation — merger. Your coverage under this Employee dishonesty means only dishonest agreement will apply to any new employees acts committed by an employee whether identi- you add through consolidation or merger with fied or not while acting alone or with other another organization. You must however, persons, with the intent to: notify us in writing within 30 days after the date *Cause you a loss; and you add the employees and you must pay an *Obtain personal financial benefit; or additional premium. *Obtain financial benefit for any person or organization intended by the employee to receive that benefit. 45010 Ed.5-87 Printed in U.S.A. Insuring Agreement 93B Page 1 of 4 ®St.Paul Fire and Marine Insurance Co.1987 Crime Coverage " Stlbul When This Agreement Covers regardless of how many protected persons are effected by the loss. We'll apply this agreement to covered losses that happen while this agreement is in effect. Protected persons are people and organiza- And you have up to one year after this agree- tions protected under this agreement. ment ends to discover the loss. The limit of coverage can't be accumulated Loss under prior insurance. You may have been from year to year, no matter how long this insured by a previous bond that covered the agreement is in effect or how many premiums same losses this agreement covers and that you pay. ended at the time this agreement became effec- tive. If you were, but can't recover on a loss that was caused while the previous bond was in Deductible force because its discovery period has run out, we'll cover your loss. But the loss must be the The deductible is shown in the Coverage kind that would be covered by this agreement Summary. You'll be responsible, up to the had it been in effect at the time the acts that deductible, for covered loss in any one event. caused the loss occurred. We'll then pay covered claims over the deduct- ible, up to the limit of coverage. We won't pay more than the limit of coverage under the previous bond or under this agree- If an event causes a covered loss and the ment when it became effective, whichever is amount of loss isn't more than the deductible less. And the amount we pay will be a part of amount, you must: the limit of coverage under this agreement -not 'tell us what happened as soon as possible; and in addition to it. *upon our request, give us a statement describ- ing the loss. We may have insured you under other bonds whose discover period had not run out when you discovered a loss that occurred partly Exclusions — Losses We Won't Cover under those bonds and partly under this agree- ment. If this is the case, we'll pay up to the Acts committed by you or your partners. We won't limit of coverage under this agreement or under cover loss that results from any dishonest or the previous bonds we issued, whichever cover- criminal act committed by you or any of your age is greater. partners. Governmental action. We won't cover loss that Where This Agreement Covers results from the seizure or destruction of prop- erty by order of governmental authority. This agreement covers events that happen in the United States of America, U.S. Virgin Indirect loss. We won't cover loss that is an Islands, Puerto Rico, Canal Zone or Canada. indirect result of any act or event covered by However, we'll cover loss caused by an this agreement, including, but not limited to employee while temporarily outside these terri- loss resulting from: tories for a period of not more than 90 days. *Your inability to realize income that you would have realized if there had been no loss of or Event means an act or series of related acts damage to covered property; involving one or more employees. *Payment of damages of any type for which you are legally liable. But this exclusion won't apply to compensatory damages arising Limit Of Coverage directly from a loss covered under this agree- ment; or The limit of coverage shown in the Coverage *Payment of costs, fees or other expenses you Summary is the most we'll pay for loss in any incur in establishing either the existence or the one event. This limit of coverage applies amount of loss under this agreement. Page 2 of 4 ®St.Paul Fire and Marine Insurance Co.1987 maStftuI When This Agreement Covers regardless of how many protected persons are effected by the loss. We'll apply this agreement to covered losses that happen while this agreement is in effect. Protected persons are people and organiza- And you have up to one year after this agree- tions protected under this agreement. ment ends to discover the loss. The limit of coverage can't be accumulated Loss under prior insurance. You may have been from year to year, no matter how long this insured by a previous bond that covered the agreement is in effect or how many premiums same losses this agreement covers and that you pay. ended at the time this agreement became effec- tive. If you were, but can't recover on a loss that was caused while the previous bond was in Deductible force because its discovery period has run out, we'll cover your loss. But the loss must be the The deductible is shown in the Coverage kind that would be covered by this agreement Summary. You'll be responsible, up to the had it been in effect at the time the acts that deductible, for covered loss in any one event. caused the loss occurred. We'll then pay covered claims over the deduct- ible, up to the limit of coverage. We won't pay more than the limit of coverage under the previous bond or under this agree- If an event causes a covered loss and the ment when it became effective, whichever is amount of loss isn't more than the deductible less. And the amount we pay will be a part of amount, you must: the limit of coverage under this agreement -not •tell us what happened as soon as possible; and in addition to it. *upon our request, give us a statement describ- ing the loss. We may have insured you under other bonds Nhose discover period had not run out when you discovered a loss that occurred partly Exclusions — Losses We Won't Cover under those bonds and partly under this agree- ment. If this is the case, we'll pay up to the Acts committed by you or your partners. We won't limit of coverage under this agreement or under cover loss that results from any dishonest or the previous bonds we issued, whichever cover- criminal act committed by you or any of your age is greater. partners. Governmental action. We won't cover loss that Where This Agreement Covers results from the seizure or destruction of prop- erty by order of governmental authority. This agreement covers events that happen in the United States of America, U.S. Virgin Indirect loss. We won't cover loss that is an Islands, Puerto Rico, Canal Zone or Canada. indirect result of any act or event covered by However, we'll cover loss caused by an this agreement, including, but not limited to employee while temporarily outside these terri- loss resulting from: tories for a period of not more than 90 days. •Your inability to realize income that you would have realized if there had been no loss of or Event means an act or series of related acts damage to covered property; involving one or more employees. *Payment of damages of any type for which you are legally liable. But this exclusion won't apply to compensatory damages arising Limit Of Coverage directly from a loss covered under this agree- ment; or The limit of coverage shown in the Coverage 'Payment of costs, fees or other expenses you Summary is the most we'll pay for loss in any incur in establishing either the existence or the one event. This limit of coverage applies amount of loss under this agreement. Page 2 of 4 cSt.Paul Fire and Marine Insurance Co.1987 TMeSt19uI Legal expenses. We won't cover expenses Securities. Securities loss will be determined related to any legal action. by their value at the close of business on the day the loss was discovered. We may, at our Nuclear. We won't cover loss that results from option: nuclear reaction, nuclear radiation or radioac- •Pay the value of such securities or replace tive contamination, or any related act or inci- them in kind, in which event you must assign to dent. us all your rights, title and interest in and to those securities; or War and similar action. We won't cover loss that •Pay the cost of any lost securities bond results from war, whether or not declared, required in connection with issuing duplicates warlike action, insurrection, rebellion or revo- of the securities. But we'll only pay the cost of lution, or any related act or incident. a bond with an amount of coverage that doesn't exceed the value of the securities at the close Employee canceled under prior insurance. We won't of business on the day the loss was discovered; cover loss caused by any employee for whom or the limit of coverage under this agreement, similar prior insurance has been canceled and whichever is less. not reinstated since the last such cancellation. Other property. For loss of or damage to other Inventory shortages. We won't cover loss or that property, we'll figure you loss to be either: part of any loss for which proof of existence or •the cost of repairing the property; amount is dependent on: •the cost of replacing the property with that of •an inventory computation; or a similar kind and quality; or •a profit and loss computation. •the actual cash value of the property on the day the loss was discovered. For example: We can choose either to repair or replace the You suspect an employee of stealing your property or to pay its actual cash value. In merchandise but do not have proof. After case of disagreement between us on the actual completing an inventory of your store you cash value or the cost of repair or replacement, discover an inventory shortage of $10,000. the matter will be decided by arbitration. However, inventory shortages can happen for reasons other than employee's theft such Any property that we pay for or replace as shoplifting, mismarking, or poor record- becomes our property. keeping. Because of this we won't cover the loss when the proof of loss is based on inventory or profit and loss computation. Other Rules However, if the employee admitted to Records. You must keep records of all covered stealing S5000 dollars worth of merchan— property so we can verify the amount of any dise, we'll pay that amount less the deduc- loss. tible. Employee cancellation. The following is added to the Cancellation section of the General Rules How We'll Figure Your Loss but only for this agreement. We may choose to pay for loss in the money of Coverage ends on any employee as soon as you the country in which the loss occurred: or any partner or officer in your business learns •At face value in the money issued by that that the employee has committed a dishonest country; or act. This doesn't apply if the partner or officer •In the United States dollar equivalent deter- who learns of the dishonesty is working with mined by the rate of exchange on the day the the employee in committing the dishonest act. loss was discovered. We can also end coverage on any employee for Money. Money losses will be determined by its any other reason by mailing or delivering notice face value. 45010 Ed.5-87 Printed in U.S.A. Insuring Agreement 93B Page 3 of 4 ®St.Paul Fire and Marine Insurance Co.1987 Crime Coverage " StF9uI to you at least 30 days before coverage will •then to us, until we are reimbursed for the end. The mailing of notice to you at the last settlement made; known address will be considered proof of •then to you, until you are reimbursed for that notice. part of the loss equal to the deductible amount if any. Recovering damages. The following paragraphs But, this doesn't include recovery: replace the Recovering Damages From A Third •from insurance, suretyship, reinsurance, secu- Party section of the General Rules, but only for rity or indemnity taken for our benefit; or this agreement. •of original securities after duplicates of them have been issued. You may be able to recover all or part of your loss from someone other than us. Because of this, you must do all you can to preserve any Other Insurance rights of recovery you may have. If we make a payment for your loss under this agreement, You may have other insurance or another source your right of recovery will belong to us. of reimbursement that covers your loss. If you do, we'll pay the amount of your loss that's left Any recoveries, less the cost of obtaining after your other insurance or other source has them, made after settlement of loss covered by been used up, less the deductible. We won't this agreement will be distributed: however, pay more than the limit of coverage •to you until you are reimbursed for any loss under this agreement. you sustain that exceeds the limit of coverage and the deductible amount, if any; Page 4 of 4 cSt.Paul Fire and Marine Insurance Co.1987 ROBBERY AND SAFE BURGLARY PROTECTION TM•Sti9uI We've designed this agreement to protect against direct loss of property. Of course there are some limitations which are explained later in this agreement. Table of Contents Page care and custody of property outside the prem- ises. What This Agreement Covers 1 We won't consider any of the following to be an Loss Inside Your Building 1 employee: Safe Burglary 1 •Agent, broker, factor, commission merchant, Loss Outside Your Building 2 consignee, independent contractor or represen- Property With Limited Coverage 2 tative of the same general character; or Insurance For Your Benefit 2 •Director or trustee, except while performing Consolidation - Merger 2 acts coming within the scope of the usual duties When This Agreement Covers 2 of an employee. Limits Of Coverage 3 Deductible 3 Your building means that portion of any Exclusions - Losses We Won't Cover 3 building you occupy in conducting your busi- How We'll Figure Your Loss 4 ness. Other Rules 4 Other Insurance 4 Robbery means the taking of property from the care and custody of an individual by one who has: •caused or threatened to cause that individual What This Agreement Covers bodily harm; or •committed an obviously unlawful act witnessed by that individual. Loss Inside Your Building Security guard means any person you employ to have care and custody of property inside We'll pay for loss of or damage to property your building and who has no other duties. while in your care and custody or in the care and custody of any of your partners or employees: Building damage. We'll also pay for loss from •while inside your building; and damage to your building that results directly •that results directly from actual or attempted from robbery. But this only applies if you are robbery. the owner of the building or are responsible for damage to it. But we won't cover property in the care and custody of any person acting as a security guard or janitor. Safe Burglary Employee means any individual: We'll pay for loss of or damage to property •in your service and for 30 days after termi- inside your building in a safe or vault that nation of service; results directly from actual or attempted safe •whom you compensate directly by salary, burglary. wages or commissions; •whom you have the right to direct and control Safe burglary means the taking of: while performing services for you; or •property from within a locked safe or vault by •employed by an employment contractor while a person unlawfully entering the safe or vault as that person is subject to your direction and evidenced by marks of forcible entry; or control and performing services for you. But •a safe or vault from inside the building. this won't include any such person while having 45013 Ed.5-87 Printed in U.S.A. Insuring Agreement 78 Page 1 of 4 ©St.Paul Fire and Marine Insurance Co.1987 Crime Coverage Coverage IntF9ui Building, safe or vault damage. We'll also pay for Property not covered. We won't cover the loss from damage to your building or a locked following: safe or vault inside your building that results •Motor vehicles, trailers, or semi-trailers or directly from safe burglary. But this only equipment and accessories attached to them; applies if you are the owner of the property or and liable for damage to it. •Money and securities. Money means: Loss Outside Your Building •currency, coins and bank notes in current use and having a face value; and We'll pay for loss of or damage to property •travelers checks, registered checks and money outside your building: orders held for sale to the public. •while in the care and custody of a messenger; and Securities mean negotiable and non-negotia- •that results directly from actual or attempted ble instruments or contracts representing either robbery. money or other property and includes: *Tokens, tickets, revenue and other stamps in Messenger means you, any of your partners current use, whether represented by actual or any employee. stamps or unused value in a meter; and *Evidences of debt issued in connection with Transporting property by armored car. We'll pay credit or charge cards not issued by you. for loss of or damage to property that results directly from actual or attempted robbery Securities don't include money. while: •outside your building; and •in the care and custody of an armored motor Insurance For Your Benefit vehicle company. This insurance is for your benefit only. It But we'll only pay for the amount of loss that provides no rights or benefits to any other you can't recover: person or organization and is limited to: sunder your contract with the armored motor •property that you own or hold; or vehicle company; and *property for which you are legally responsible. •from any insurance carried by or on behalf of the armored motor vehicle company. Consolidation — Merger Where we cover outside your building. This agree- ment covers events that happen in the United Your coverage under this agreement will apply States of America, U.S. Virgin Islands, Puerto to any new property you add through consol- Rico, Canal Zone or Canada. idation or merger with another organization. You must however, notify us in writing within Event means an act or series of related acts 30 days after the date you add the property and involving one or more persons. you must pay an additional premium. Property With Limited Coverage When This Agreement Covers We'll only pay up to $1,000 in any one event for We'll pay for covered losses that happen while all loss or damage to the following property: this agreement is in effect. And you have up to •Precious metals, precious or semi-precious one year after this agreement ends to discover stones, pearls or furs. This includes articles the loss. made of or containing such materials that make up the principle value of the article; and Loss under prior insurance. You may have had .manuscripts, drawings, or records of any kind. prior insurance that covered the same losses This includes the cost of reconstructing them or this agreement covers and that ended at the reproducing any information contained in them. Page 2 of 4 ©St.Paul Fire and Marine Insurance Co.1987 TMBSiftul time this agreement became effective. If you Deductible did, but can't recover on a loss that was caused while the prior insurance was in force because The deductible is shown in the Coverage its discovery period has run out, we'll cover Summary. You'll be responsible, up to the your loss. But the loss must be the kind that deductible, for covered loss in any one event. would be covered by this agreement had it been We'll then pay covered claims over the deduct- in effect at the time the acts that caused the ible, up to the limit of coverage that applies. loss occurred. We won't pay more than the limit of coverage Exclusions — Losses We Won't Cover under the prior insurance or under this agree- ment when it became effective, whichever is Governmental action. We won't cover loss that less. And the amount we pay will be a part of results from the seizure or destruction of prop- the limit of coverage under this agreement - not erty by order of governmental authority. in addition to it. Indirect loss. We won't cover loss that is an We may have insured you under prior insurance indirect result of any act or event covered by whose discover period had not run out when this agreement, including, but not limited to you discovered a loss that occurred partly loss resulting from: under such insurance and partly under this •Your inability to realize income that you would agreement. If this is the case, we'll pay up to have realized if there had been no loss of, or the limit of coverage under this agreement or loss from damage to covered property; under the prior insurance we issued, whichever •Payment of damages of any type for which coverage is greater. you are legally liable. But this exclusion won't apply to compensatory damages arising directly from a loss covered under this agree- Limits Of Coverage ment; or •Payment of costs, fees or other expenses you The limits of coverage shown in the Coverage incur in establishing either the existence or the Summary are the most we'll pay for loss in any amount of loss under this agreement. one event. These limits of coverage apply regardless of how many protected persons, Legal expenses. We won't cover expenses property owners, covered items or financial related to any legal action. interest are involved. Nuclear. We won't cover loss that results from Protected persons are people and organiza- nuclear reaction, nuclear radiation or radioac- tions protected under this agreement. tive contamination, or any related act or inci- dent. The limit of coverage can't be accumulated from year to year, no matter how long this War and similar action. We won't cover loss that agreement is in effect or how many premiums results from war, whether or not declared, you pay. warlike action, insurrection, rebellion or revo- lution, or any related act or incident. Robbery inside your building limit. This is the most we'll pay for a covered loss that happens Dishonesty. We won't cover loss resulting from inside your business. any dishonest or criminal act committed by any of your employees, directors, trustees or Safe burglary limit. This is the most we'll pay authorized representatives: for a covered safe burglary loss that happens •acting alone or with other persons; or inside your building. •while performing services for you or other- wise. Loss outside your building limit. This is the most we'll pay for a covered loss that happens outside your building. 45013 Ed.5-87 Printed in U.S.A. Insuring Agreement 78 Page 3 of 4 ©St.Paul Fire and Marine Insurance Co.1987 Crime Coverage Coverage "St19ul Transfer or surrender of property. We won't cover •At face value in the money issued by that loss of property after it has been transferred or country; or surrendered to a person or place outside your •In the United States dollar equivalent deter- building: mined by the rate of exchange on the day the son the basis of unauthorized instructions; or loss was discovered. •as a result of a threat to do bodily harm to any person or damage to any property. Other Rules But this exclusion won't apply to loss while outside your building in the care and custody of Records. You must keep records of all covered a messenger if you: property so we can verify the amount of any •had no knowledge of any threat at the time the loss. conveyance began; or •had knowledge of a threat at the time the Recovering damages. The following paragraphs conveyance began, but the loss was not related replace the Recovering Damages From A Third to the threat. Party section of the General Rules, but only for this agreement. Fire. We won't cover loss from damage to your building that's caused by fire. But this exclu- You may be able to recover all or part of your sion won't apply to loss of money and securi- loss from someone other than us. Because of ties caused by fire. this, you must do all you can to preserve an rights of recovery you may have. If we make a Vandalism. We won't cover loss from damage payment for your loss under this agreement, to your building, its exterior or to containers of your right of recovery will belong to us. covered property by vandalism or malicious mischief. Any recoveries, less the cost of obtaining them, made after settlement of loss covered by this agreement will be distributed: How We'll Figure Your Loss •to you until you are reimbursed for any loss you sustain that exceeds the limit of coverage We'll figure your loss or damage to other prop- and the deductible amount, if any; erty to be either: •then to us, until we are reimbursed for the •the cost of repairing the property; settlement made; •the cost of replacing the property with that of •then to you, until you are reimbursed for that a similar kind and quality; or part of the loss equal to the deductible amount •the actual cash value of the property on the if any. day the loss was discovered. But this doesn't include recovery from insur- ance, suretyship, reinsurance, security or We can choose either to repair or replace the indemnity taken for our benefit. property or to pay its actual cash value. In case of disagreement between us on the actual cash value or the cost of repair or replacement, Other Insurance the matter will be decided by arbitration. You may have other insurance or another source Any property that we pay for or replace of reimbursement that covers your loss. If you becomes our property. do, we'll pay the amount of your loss that's left after your other insurance or other source has How we'll pay. We may choose to pay for loss been used up, less the deductible. We won't in the money of the country in which the loss however, pay more than the limit of coverage occurred: under this agreement. Page 4 of 4 ®St.Paul Fire and Marine Insurance Co.1987 FORGERY OR ALTERATION PROTECTION ThestF9ul We've designed this agreement to protect you against direct loss if someone forges or alters one of your checks, drafts or similar promises of payment. Of course there are some limitations which are explained later in this agreement. Table of Contents Page When This Agreement Covers What This Agreement Covers 1 We'll apply this agreement to covered losses When This Agreement Covers 1 that happen while this agreement is in effect. Where We Cover 1 And you have up to one year after this agree- Limit Of Coverage 1 ment ends to discover the loss. Deductible 2 Exclusions -Losses We Won't Cover 2 Loss under prior insurance. You may have had How We'll Pay Your Loss 2 prior insurance that covered the same losses Other Rules 3 this agreement covers and that ended at the Other Insurance 3 time this agreement became effective. If you did, but can't recover on a loss that was caused while the prior insurance was in force because What This Agreement Covers its discovery period has run out, we'll cover your loss. But the loss must be the kind that We'll pay for loss resulting directly from would be covered by this agreement had it been forgery or alteration of a check, draft, promis- in effect at the time the acts that caused the sory note or similar written promises or loss occurred. directions to pay money that are: •made or drawn by you; We won't pay more than the limit of coverage •drawn upon you; under the prior insurance or under this agree- •made or drawn by someone acting as your ment when it became effective, whichever is agent; or less. And the amount we pay will be a part of •claimed to have been so made or drawn. the limit of coverage under this agreement -not in addition to it. This insurance is for your benefit only. It provides no rights or benefits to any other We may have insured you under prior insurance person or organization. whose discover period had not run out when you discovered a loss that occurred partly Money means: under such insurance and partly under this •currency, coins and bank notes in current use agreement. If this is the case, we'll pay up to and having a face value; and the limit of coverage under this agreement or •travelers checks, registered checks and money under the prior insurance we issued, whichever orders held for sale to the public. coverage is greater. Facsimile signatures. We'll treat mechanically reproduced facsimile signatures the same as Where We Cover handwritten signatures. This agreement covers loss that happens Legal expenses. You may refuse to pay a check, anywhere in the world. draft, or similar order for payment because it may have been forged or altered. If this happens and someone sues you for payment, Limit Of Coverage we'll cover the legal expenses if we've given our written consent to the defense of the suit. The limit of coverage shown in the Coverage We'll pay for any reasonable legal expenses Summary is the most we'll pay for loss in any that you incur and pay in that defense. The one event. This limit of coverage applies amount we'll pay for such expenses will be in addition to the limit of coverage that applies. 45016 Ed.5-87 Printed in U.S.A. Insuring Agreement 95 Page 1 of 3 @St.Paul Fire and Marine Insurance Co.1987 Crime Coverage MGM! regardless of how many protected persons, Nuclear. We won't cover loss that results from property owners, covered items or financial nuclear reaction, nuclear radiation or radioac- interest are involved. tive contamination, or any related act or inci- dent. Event means an act or series of related acts involving one or more persons. War and similar action. We won't cover loss that results from war, whether or not declared, Protected persons are people and organiza- warlike action, insurrection, rebellion or revo- tions protected under this agreement. lution, or any related act or incident. The limit of coverage can't be accumulated Dishonesty. We won't cover loss resulting from from year to year, no matter how long this any dishonest or criminal act committed by any agreement is in effect or how many premiums of your employees, directors, trustees or you pay. authorized representatives: •acting alone or with other persons; or •while performing services for you or other- Deductible wise. The deductible is shown in the Coverage Employee means any individual: Summary. You'll be responsible, up to the •in your service and for 30 days after termi- deductible, for covered loss in any one event. nation of service; We'll then pay covered claims over the deduct- •whom you compensate directly by salary, ible, up to the limit of coverage. wages or commissions; •whom you have the right to direct and control The deductible doesn't apply to legal expenses. while performing services for you; or •employed by an employment contractor while that person is subject to your direction and Exclusions — Losses We Won't Cover control and performing services for you. But this won't include any such person while having Governmental action. We won't cover loss that care and custody of property outside the prem- results from the seizure or destruction of prop- ises. erty by order of governmental authority. Employee doesn't mean an: Indirect loss. We won't cover loss that is an •Agent, broker, factor, commission merchant, indirect result of any act or event covered by consignee, independent contractor or represen- this agreement, including, but not limited to tative of the same general character; or loss resulting from: •Director or trustee, except while performing •Your inability to realize income that you would acts coming within the scope of the usual duties have realized if there had been no loss of, or of an employee. loss from damage to covered property; •Payment of damages of any type for which you are legally liable. But this exclusion won't How We'll Pay Your Loss apply to compensatory damages arising directly from a loss covered under this agree- We may choose to pay for loss in the money of ment; or the country in which the loss occurred: •Payment of costs, fees or other expenses you •At face value in the money issued by that incur in establishing either the existence or the country; or amount of loss under this agreement. •In the United States dollar equivalent deter- mined by the rate of exchange on the day the Legal expenses. We won't cover expenses loss was discovered. related to any legal action. But we won't pay more than the limit of cover- age. Page 2 of 3 oSt.Paul Fire and Marine Insurance Co.1987 TheStRUA Other Rules •to you until you are reimbursed for any loss you sustain that exceeds the limit of coverage Records. You must keep all checks, drafts, and the deductible amount, if any; promissory notes, or similar written promises •then to us, until we are reimbursed for the or directions and records of such items. If this settlement made; isn't possible, we'll need an affidavit setting •then to you, until you are reimbursed for that forth the amount and cause of loss. This will part of the loss equal to the deductible amount allow us to verify the amount of any loss. if any. But this doesn't include recovery from insur- Recovering damages. The following paragraphs ance, suretyship, reinsurance, security or replace the Recovering Damages From A Third indemnity taken for our benefit. Party section of the General Rules, but only for this agreement. Other Insurance You may be able to recover all or part of your loss from someone other than us. Because of You may have other insurance or another source this, you must do all you can to preserve any of reimbursement that covers your loss. If you rights of recovery you may have. If we make a do, we'll pay the amount of your loss that's left payment for your loss under this agreement, after your other insurance or other source has your right of recovery will belong to us. been used up, less the deductible. We won't however, pay more than the limit of coverage Any recoveries, less the cost of obtaining under this agreement. them, made after settlement of loss covered by this agreement will be distributed: 45016 Ed.5-87 Printed in U.S.A. Insuring Agreement 95 Page 3 of 3 cSt.Paul Fire and Marine Insurance Co.1987 Crime Coverage MONEY AND SECURITIES PROTECTION TM"Sti9Ul We've designed this agreement to protect against direct losses to your money and securities. Of course there are some limitations which are explained later in this agreement. Table of Contents Page Your building means that portion of any building you occupy in conducting your busi- ness. What This Agreement Covers 1 Loss Inside Your Building 1 Bank means the interior of that portion of any Loss Outside Your Building 1 building occupied by a banking institution or Insurance For Your Benefit 2 similar safe depository. Consolidation - Merger 2 Limits Of Coverage 2 Theft means any act of stealing. Deductible 2 When This Agreement Covers 2 Money and securities containers. We'll pay for Exclusions -Losses We Won't Cover 3 loss of and damage to a locked safe, vault, cash How We'll Figure Your Loss 4 register, cash box or cash drawer inside your Other Rules 4 building that results directly from actual or Other Insurance 4 attempted: •theft of; or •unlawful entry into; such containers. What This Agreement Covers Damage. We'll pay for loss from damage to your building that results directly from actual or attempted theft of money and securities. But Loss Inside Your Building only if you are the owner of the building or are legally responsible for damage to it. We'll pay for loss of money and securities inside your building or a bank that results directly from a covered cause of loss. Loss Outside Your Building Covered causes of loss are: We'll pay for loss of money and securities •theft; outside your building: •disappearance; and •while in the care and custody of a messenger; •destruction. and •results directly from a covered cause of loss. Money means: •currency, coins and bank notes in current use Messenger means you, any of your partners and having a face value; and or any employee. •travelers checks, registered checks and money orders held for sale to the public. Employee means any individual: •in your service and for 30 days after termi- Securities mean negotiable and non-negotia- nation of service; ble instruments or contracts representing either •whom you compensate directly by salary, money or other property and includes: wages or commissions; and •Tokens, tickets, revenue and other stamps in •whom you have the right to direct and control current use, whether represented by actual while performing services for you; or stamps or unused value in a meter; and •employed by an employment contractor while •Evidences of debt issued in connection with that person is subject to your direction and credit or charge cards not issued by you. control and performing services for you. But this won't include any such person while having Securities don't include money. 45012 Ed.5-87 Printed in U.S.A. Insuring Agreement 76 Page 1 of 4 ©St.Paul Fire and Marine Insurance Co.1987 Crime Coverage n Stmul care and custody of property outside the prem- Limits Of Coverage ises. The limits of coverage shown in the Coverage We won't consider any of the following to be an Summary are the most we'll pay for loss in any employee: one event. These limits of coverage apply •Agent, broker, factor, commission merchant, regardless of how many protected persons, consignee, independent contractor or represen- property owners, covered items or financial tative of the same general character; or interest are involved. •Director or trustee, except while performing acts coming within the scope of the usual duties Protected persons are people and organiza- of an employee. tions protected under this agreement. Transporting property by armored car. We'll pay The limit of coverage can't be accumulated for loss of money and securities that results from year to year, no matter how long this directly from a covered cause of loss while: agreement is in effect or how many premiums •outside your building; and you pay. •in the care and custody of an armored motor vehicle company. Loss inside your building limit This is the most we'll pay for a covered loss that happens inside But we'll only pay for the amount of loss that your building. you can't recover: •under your contract with the armored motor Loss outside your building limit This is the most vehicle company; and we'll pay for a covered loss that happens •from any insurance carried by or on behalf of outside your building. the armored motor vehicle company. — Where we cover outside your building. This agree- Deductible ment covers events that happen in the United States of America, U.S. Virgin-Islands, Puerto The deductible is shown in the Coverage Rico, Canal Zone or Canada. Summary. You'll be responsible, up to the deductible, for covered loss in any one event. Event means an act or series of related acts We'll then pay covered claims over the deduct- which may involve one or more persons or not ible, up to the limit of coverage that applies. involve any person. When This Agreement Covers Insurance For Your Benefit We'll apply this agreement to covered losses This insurance is for your benefit only. It that happen while this agreement is in effect. provides no rights or benefits to any other And you have up to one year after this agree- person or organization and is limited to: ment ends to discover the loss. •property that you own or hold; or •property for which you are legally responsible. Loss under prior insurance. You may have had prior insurance that covered the same losses this agreement covers and that ended at the Consolidation — Merger time this agreement became effective. If you did, but can't recover on a loss that was caused Your coverage under this agreement will apply while the prior insurance was in force because to any new property you add through consol- its discovery period has run out, we'll cover idation or merger with another organization. your loss. But the loss must be the kind that You must however, notify us in writing within would be covered by this agreement had it been _ 30 days after the date you add the property and in effect at the time the acts that caused the you must pay an additional premium. loss occurred. Page 2 of 4 oSt.Paul Fire and Marine Insurance Co.1987 he$tF9ul _ We won't pay more than the limit of coverage of your employees, directors, trustees or under the prior insurance or under this agree- authorized representatives: ment when it became effective, whichever is *acting alone or with other persons; or less. And the amount we pay will be a part of •while performing services for you or other- the limit of coverage under this agreement -not wise. in addition to it. Transfer or surrender of property. We won't cover We may have insured you under prior insurance loss of property after it has been transferred or whose discover period had not run out when surrendered to a person or place outside your you discovered a loss that occurred partly building or a bank: under such insurance and partly under this •on the basis of unauthorized instructions; or agreement. If this is the case, we'll pay up to •as a result of a threat to do bodily harm to any the limit of coverage under this agreement or person or damage to any property. under the prior insurance we issued, whichever coverage is greater. This exclusion won't apply to loss outside your building or bank while in the care and custody of a messenger if you: Exclusions — Losses We Won't Cover •had no knowledge of the threat at the time the property was surrendered; or Governmental action. We won't cover loss that *had knowledge of the threat, but the loss results from the seizure or destruction of prop- wasn't related to the threat. erty by order of governmental authority. Accounting errors. We won't cover any loss indirect loss. We won't cover loss that is an resulting from accounting and mathematical indirect result of any act or event covered by errors or omissions. this agreement, including, but not limited to loss resulting from: Exchange. We won't cover loss that results •Your inability to realize income that you would from giving money or securities in any have realized if there had been no loss of, or exchange or purchase. loss from damage to covered property; •Payment of damages of any type for which Fire. We won't cover loss from damage to your you are legally liable. But this exclusion won't building that's caused by fire. But this exclu- apply to compensatory damages arising sion won't apply to loss of money and securi- directly form a loss covered under this agree- ties caused by fire. ment; or •Payment of costs, fees or other expenses you Coin operated machines. We won't cover any loss incur in establishing either the existence or the of money in a coin-operated device inside your amount of loss under this agreement. building unless the amount deposited is contin- uously recorded by an instrument in the Legal expenses. We won't cover expenses machine. related to any legal action. Vandalism. We won't cover loss from damage Nuclear. We won't cover loss that results from to your building or to containers of covered nuclear reaction, nuclear radiation or radioac- property by vandalism or malicious mischief. tive contamination, or any related act or inci- dent. Giving up possession of property. We won't cover loss when you or anyone acting on your behalf War and similar action. We won't cover loss that is induced by a dishonest act to give up title or results from war, whether or not declared, possession of covered property. For example: warlike action, insurrection, rebellion or revo- lution, or any related act or incident. Someone impersonating a messenger tricks you to entrust him with your daily deposits. Dishonesty. We won't cover loss resulting from The deposits are never made. We won't any dishonest or criminal act committed by any cover this loss. 45012 Ed.5-87 Printed in U.S.A. Insuring Agreement 76 Page 3 of 4 eSt.Paul Fire and Marine Insurance Co.1987 Crime Coverage " StRiul How We'll Figure Your Loss Any property that we pay for or replace becomes our property. We may choose to pay for loss in the money of the country in which the loss occurred: •At face value in the money issued by that Other Rules country; or •In the United States dollar equivalent deter- Records. You must keep records of all covered mined by the rate of exchange on the day the property so we can verify the amount of any loss was discovered. loss. Money. Money losses will be determined by its Recovering damages. The following paragraphs face value. replace the Recovering Damages From A Third Party section of the General Rules, but only for Securities. Securities loss will be determined this agreement. by their value at the close of business on the day the loss was discovered. We may, at our You may be able to recover all or part of your option: loss from someone other than us. Because of •Pay the value of such securities or replace this, you must do all you can to preserve any them in kind, in which event you must assign to rights of recovery you may have. If we make a us all your rights, title and interest in and to payment for your loss under this agreement, securities; or your right of recovery will belong to us. •Pay the cost of any lost securities bond required in connection with issuing duplicates Any recoveries, less the cost of obtaining of the securities. But we'll only pay the cost of them, made after settlement of loss covered by a bond with an amount of coverage that doesn't this agreement will be distributed: exceed the value of the securities at the close •to you until you are reimbursed for any loss of business on the day the loss was discovered; you sustain that exceeds the limit of coverage or the limit of coverage under this agreement, and the deductible amount, if any; whichever is less. •then to us, until we are reimbursed for the settlement made; But we won't pay more than the limit of cover- •then to you, until you are reimbursed for that age. part of the loss equal to the deductible amount if any. Other property. For loss of, or loss from But, this doesn't include recovery: damage to other property, we'll figure your loss •from insurance, suretyship, reinsurance, secu- to be either: rity or indemnity taken for our benefit; or •the cost of repairing the property; •of original securities after duplicates of them •the cost of replacing the property with that of have been issued. a similar kind and quality; or •the actual cash value of the property on the day the loss was discovered. Other Insurance We can choose either to repair or replace the You may have other insurance or another source property or to pay its actual cash value. In of reimbursement that covers your loss. If you case of disagreement between us on the actual do, we'll pay the amount of your loss that's left cash value or the cost of repair or replacement, after your other insurance or other source has the matter will be decided by arbitration. been used up, less the deductible. We won't however, pay more than the limit of coverage under this agreement. Page 4 of 4 ®St.Paul Fire and Marine Insurance Co.1987 One Tower Square, Hartford, Connecticut 06183 TheTravelers'j COMMON POLICY DECLARATIONS ISSUE DATE : 06/27/95 POLICY NUMBER: M5J-660-920J5922-TIL-95 1 . NAMED INSURED AND MAILING ADDRESS: COLORADO COUNTIES CASUALTY & PROPERTY POOL C/O COUNTY TECHNICAL SERVICES 1177 GRANT STREET, SUITE 200 DENVER, CO 80203 2 . POLICY PERIOD: From 07/01 /95 to 07/01 /96 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 95 ERE 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 *$ 62,079 Due at Inception $ Due at EachOME $ NAME AND ADDRESS OF AGENT OR BROKER: COUNTERSIGNED BY: MARSH & MCLENNAN GR B-C (F6347)jggg nn _ 3 EMBARCADERO CENTER cigi3 P 0 BOX 193880 Autra6riz d Representative SAN FRANCISCO, CA 941193880 DATE, Irian /945 IL TO 02 11 89 PAGE 1 OF 1 OFFICE : WALNUT CREEK 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 organiza- 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 E. PREMIUMS 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 celled, we will send the first Named Insured b. Will be the payee for any return pre- miums we pay. any premium refund due. If we cancel, the 2. We compute all premiums for this policy in refund will be pro rata. If the first Named accordance with our rules, rates, rating Insured cancels, the refund may be less than plans, premiums and minimum premiums. pro rata. The cancellation will be effective The premium shown in the Declarations was even if we have not made or offered a refund. computed based on rates and rules In effect 6. If notice is mailed, proof of mailing will be 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 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. a 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 poi- 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 endorsement issued by us as part policy.of this py. o 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 12 94 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 Declare- company Indicated as insuring company in the Corn- tions and the Coverage Parts and endorsements mon Policy Declarations by the abbreviation of its listed in that declarations form. name opposite that Coverage Part. 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 (PHX) The Charter Oak Fire Insurance Company (COF) The Travelers Indemnity Company of Illinois (TIL) The Travelers Indemnity Company of Connecticut (TCT) The Travelers Indemnity Company of America (TIA) Secretary President d The Travelers Insurance Company (INS) -Dsvalflia aca Secretary President Page2of2 ILT0011294 TheTravelerssj POLICY NUMBER : M5J-660-920J5922-TIL-95 EFFECTIVE DATE : 07/01 /95 ISSUE DATE : 06/27/95 LISTING OF FORMS, ENDORSEMENT & SCHEDULE NUMBERS THIS LISTING SHOWS THE NUMBER OF INTERLINE FORMS, ENDORSEMENTS AND OTHER SCHEDULES . IL TO 01 12 94 Common Policy Conditions IL 01 69 02 93 CO Changes - Concealment , Misrepresentation, Fraud IL 02 28 10 89 Colorado Changes - Cancellation and Nonrenewal amm ram ggg mm C= SYMBOL NO. IL T8 01 07 95 LL� OFFICE : WALNUT CREEK 418 MEE PRODUCER NAME : MARSH & MCLENNAN GR B-C F6347 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. mss= 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 b. 30 days before the effective date of can- notified us of the change and we ac- cellation if we cancel for any other cept such change. 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 mall or More through first-class mall 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 we issued, we may cancel this policy by expiration date or its anniversary date if it is a mailing through first-class mall to the first policy written for a term of more than one year or Named Insured written notice of cancel- with no fixed expiration date. lation: If notice is mailed, proof of mailing will be (1) Including the actual reason, at least sufficient proof of notice. 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 mail 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 Any decrease in coverage during the policy term and underwritten as of the effective date of must be based on one or more of the following the policy unless the first Named Insured has reasons: notified us of the change and we accept such change. 1. 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 o Page 2 of 2 Copyright, Insurance Services Office, Inc., 1989 IL 02 28 10 89 Copyright, ISO Commercial Risk Services, Inc., 1989 St vatk MOW woo moo aja QF:.•kr SSW BOILER AND MACHINERY ` e 858°�g ui: :' low was NiaR.its :iB' R;:,' 4gisim igp5!: 0i[. •¢ces � . KE = wpmd! spa ; Nktt re • Ley DVegi yggoy 4f& ': 'nk j Therravelers 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 a LIMITS OF INSURANCE 5 Limit Per Accident 6 Coverage Extension Limits 6 DEDUCTIBLE 6 Damage to Covered Property 6 arra Business Income 6 Extra Expense 6 Spoilage 7 Off Premises Service Interruption 7 Ammonia Contamination 7 BMT1520194 Page 1of2 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 Bankruptcy 12 Suspension 12 Mortgage Holders 12 DEFINITIONS 13 Page 2 of 2 BM T1 52 01 94 ark One Tower Square, Hartford, Connecticut 06183 Thelraveler5J BOILER AND MACHINERY POLICY NUMBER: M5J-660-920J5922-TIL-95 COVERAGE PART DECLARATIONS ISSUE DATE: 06-27-95 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 r. 4. DEDUCTIBLES Damage to Covered Property: $5,000 Business Income: 12 HOURS Extra Expense: COMBINED WITH BI Spoilage: $5,000 arre Off Premises Service Interruption: COMBINED WITH BI Ammonia Contamination: COMBINED WITH PD 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: MARSH & MCLENNAN GR B-C F6347 OFFICE: WALNUT CREEK 418 BMT0011185 One Tower Square, Hartford, Connecticut 06183 TheTravelersj BOILER AND MACHINERY COVERAGE PART DECLARATIONS POLICY NUMBER:M5J-660-92005922-TIL-95 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 95 GENERAL PURPOSE ENDORSEMENT BM T8 69 04 91 SPECIAL LOCATION SCHEDULE Thmoorn rnmm BM TO 01 11 85 PRODUCER MARSH & MCLENNAN GR B-C F6347 OFFICE WALNUT CREEK 418 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 Covered Property, as used in this Coverage pay the applicable limits, we will not Part, aPr any property that: pay any pre-judgment interest based P P Y 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 court the part of the judgment that is 2. Covered Cause of Loss within the applicable limits. A Covered Cause of Loss is an "accident" to 4. Coverage Extensions an "object." Payments You may extend the insurance provided by 3. Defense and Supplementary Y 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. C— (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 ( ) P 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 (a) located on or wl'hin 500 feet of a Policy Period, but expiration of the location insures :icier this Cov- policy does not limit our liability erage Part; and under this coverage. (b) Used to supply electrical power, e. Spoilage 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 (4) The"accident" must occur during the or refrigeration caused solely by an Policy Period, but expiration of the "accident"to an "object" as described policy does not limit our liability In (3) below. under this coverage. (2) We will also pay any necessary ex- c. Extended Business Income penses you incur to reduce the 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 Coy- 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, con- communications services, air con- communications services, air di ditioning, heating, gas, water or g, 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 BMT1500193 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 construc- 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 lion) stamp will not physically damage the merchandise; or The following applies despite the opera- tion of the Ordinance or Law Exclusion. (2) Remove the brands or labels, if If an "accident"to an "object" damages a doing so will not physically damage building that Is Covered Property, we will the merchandise. You must re-label 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: 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 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 break- Any centri- Increase in loss caused by or result- fugal force or mechanical ing from enforcement of any ordinance, down; b. Fire or explosion that occurs at the same law, regulation, rule or ruling regulating or restricting repair, replacement, alters- 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 resume business at the described e. An "accident" that is the direct or indirect premises; result of the following, If such loss is 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 cancellation of a contract following an (1) Lightning; "accident" extending beyond the time (2) Wind, Hail, Weight of Snow, Ice or business could have resumed If the con- Sleet, Riot, Civil Commotion, Van- tract had not lapsed, been suspended or dalism, Vehicles, Falling Objects, Air- cancelled; craft, Smoke, Collapse, Water d. Delay in rebuilding, repairing or replac- Damage, Rising Water or Flood; 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 reinput 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 a. 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 all 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, �-S as provided in the Coverage Extension— Hall, 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 Flood; pressure test of any boiler, fired yes- ----a.— sel or electrical steam generator; or b. Any interruption of service lasting less than 8 hours; or (2) An Insulation breakdown test of any 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- 1. Limit Per Accident able for any loss of "business Income" occur- 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 amount shown as the Limit Per Accident in If a Business Income dollar deductible is the Declarations. This limit applies to all shown in the Declarations, we will first sub- coverages under this Coverage Part, includ- tract that amount from the amount of "busi- ing Coverage Extensions. However, costs we ness Income"we would otherwise pay arising incur under the Defense and Supplemental from any "one accident."We will then pay the Payments coverage shall not reduce the amount of loss or expense in excess of the available Limit Per Accident. Deductible, up to the applicable Limit of In- 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- sion will continue for that amount of time im- during the period of interruption of busi- mediately following the"accident." ness divided by the number of working days in that period. No reduction shall If two or more limits apply to the same por- tion of a loss, we will only pay the smaller be made for the "business nus Income" not being earned, or in the number of work- limit. ing days, because of the "accident' or D. DEDUCTIBLE any other scheduled or unscheduled Unless otherwise indicated in the Declarations, shutdowns during the period of interrup- these deductibles apply separately for each ap- tion. plicable coverage. The number indicated In the Declarations 1. Damage to Covered Property will be multiplied by the ADV as deter- 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 loss or damage exceeds the Damage to EXAMPLE 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 able 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- P tion, shown In the Declarations, we will first sub- 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- If a Business Income hour deductible is pense Deductible, up to the applicable Limit Page 6 of 15 BM T1 50 01 93 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 pressed as a number times ADV, that any "one accident" until the amount of loss or amount will be calculated as described in damage exceeds the Ammonia Contamina- D.2. above. tion Deductible shown in the Declarations. 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 pense occurring during the specified number of hours immediately following the "acci- expressed as a percentage of Loss, we will dent." not be liable for the indicated percentage of 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 or damage in excess of the Spoilage Deduct- The following conditions apply in addition to the Ible, up to the applicable Limit of Insurance Common Policy Conditions: 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 pense 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 fa Limit of Insurance shown in the Declarations. judge of a court having jurisdiction. The ap- se If an Off Premises Service Interruption dollar praisers will state separately the value of the am deductible is expressed as a number times property, the amount of"business income" or 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 decision agreed to by any two will be bind- ,= deductible is shown in the Declarations, we ing. Each party will: 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 of hours immediately following the "accident." if there is an appraisal, we will still retain our right to deny the claim. — Exclusion B.5.b. applies without regard to the Off Premises Service interruption Deduct- 3. Duties In the Event of Loss or Damage ible. You must see that the following are done in 6. Ammonia Contamination the event of loss or damage: With regard to Insurance under the Coverage a. Give us prompt notice of the loss or BMT1500193 Page7of15 BOILER AND MACHINERY damage. Include a description of the a. Resuming business, partially or corn- 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 prem- ises before repairs are undertaken or a. In the event of loss or damage covered physical evidence of the "accident" is re- by this Coverage Form, at our option, we moved. But you must take whatever will either: 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 for inspection, testing and analysis. (3) Take any part sof ed property at value: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 including your books and records. In b. We will give notice of our intentions such event, your answers must be within 30 days after we receive the proof signed; of loss. f. Send us a signed, sworn statement of c. We will not pay you more than your loss containing the Information we re- financial interest in the Covered Proper- 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 g. Cooperate with us in the Investigation lost or damaged property if other than and settlement of the claim; you. If we pay the owners, such h. Promptly send us any legal papers or pay- ments will satisfy your claims against us notices received concerning the loss or for the owner's property. We will not pay 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, while not in the presence of any other in- sured terms of this Coverage Part; and and at such times as may be (2) We have reached agreement with reasonably required, about any matter relat- you on the amount of loss or an ap- ing to this insurance or the claim, including praisal award has been made and an insured's books and records. In the event we have not denied the claim. 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 With respect to Coverage Extensions—Busi- directly damaged by an "accident" to an ness Income, Extra Expense, Off Premises "object." Our payment will be the smallest Service Interruption and Spoilage, you must of: 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"buss- 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 the time of the"accident"; e. We will not pay you if the loss or damage ,.= 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 „— 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 Era (2) Actual cash value; Income Limit, whichever is less, is the most em 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 "acts 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 Com- 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- The total "business income" loss recovery, cial Property Policy(ies) or Coverage after deductible, would be $35,000. For the Part(s) in a loss which is Insured remainder, you will either have to rely on against, partially or wholly, by any or other insurance or absorb the loss yourself. all of said Policies or Coverage Parts. 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, The "business income estimated annual subject to the following conditions: value" in your latest report for the location of (1) The amount of the loss which Is in loss is$400,000. disagreement, after making provi- The actual loss of "business Income" result- sions for any undisputed claims pay- ing from the"accident" Is $80,000. able under the Policies or Coverage The Business Income Limit is$1,000,000. Parts and after the amount of the The Business Income Deductible Is $5,000. loss is agreed upon by you, us, and 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 Com- 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) The Business Income Coinsurance provision shall simultaneously pay to you one- is suspended If we have received from you a half of the amount which is in dis- Business Income Report of Values as follows: agreement; a. The report must provide a "business in- (3) The payments by us and the Corn- come estimated annual value" for the mercial Property insurer(s) here- location or locations affected by the "ac- under and acceptance of those sums cadent"; and by you signify the agreement of us 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 date of the"accident." The arbitrators shall be three in num- 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 (4) You agree to cooperate in connec- the terms of this Policy; and 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 (5) The provisions of this condition shall "accident"; or 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 (6) Acceptance by you of any payment final judgment or arbitration award. No pursuant to the provisions of this one has the right under this Policy to condition, including any arbitration bring us into an action to determine your award, shall not operate to alter, liability. 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 The following conditions apply in addition to the for this Insurance based on your reports Common Policy Conditions: of value. 1. Cancellation b. If the adjusted premium is less than the 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 mail- c. If the adjusted premium is greater than ing or delivering to the first Named Insured the advance premium, we will charge the Ira written notice of cancellation at least: additional premium. a. 10 days before the effective date of can- 5. Liberalization m_ 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 s. This Coverage Part is void In any case of (a) You may have other insurance subject to 0s. 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 ap- (2) The Covered Property; 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- cident' to that "object." This can be done by a. The"accident" must occur: 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- dance, 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 (1) Someone Insured by this insurance; right to receive loss payment If the 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 This will not restrict your insurance. loss within 60 days after receiving 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 your remaining mortgage debt to us. 5. "Extra Expense" means: 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 1 before the effective date of been incurred to operate the business during (1) 10 days Y the same period had no"accident" occurred. cancellation If we cancel for your nonpayment of premium; or 6. "Media" means all forms of electronic and 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 tropic 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 c,_ holder at least 10 days before the expire- a. Any of the following, unless otherwise ex- tion date of this policy. cluded: G. DEFINITIONS (1) Boiler, fired vessel, unfired vessel 1. "Accident" means a sudden and accidental normally subject to vacuum or inter- _ 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 O— (2) Mechanical or electrical machine or "object"or part of the"object." apparatus used for the generation, None of the following is an "accident": transmission or utilization of mech- a. Depletion, deterioration, corrosion, ero- anical or electrical power. slop, 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; (14) Felt, wire, screen, die, extrusion (1) Part of a boiler, fired vessel or elec- trio steam generator that does not plate, swinghammer, grinding disc, cutting blade, cable, chain, belt, contain steam or water; 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 from there to the atmosphere will be (6) Sewer piping, piping forming a part 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 any medium other than water or steam, we boiler e and water ts piping n pump betweenr anyjec- will consider the medium or Its vapor as substitutes for the words—water or steam. tor; or (b) Boiler condensate return piping; e. For any gas turbine, "accident" does not 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 1. 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 pp processes, (7) Part of a vessel that is not under; 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: (1) Pressure vessel or vacuum vessel, (8) Oven, stove, furnace, incinerator, pot ra described in Paragraph a. above, or kiln; 9 P 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 (3) Separate enclosed gear set con- well-casing; 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 machine drig connectedlectrical byr cou- paratus - mounted on or used with anical a 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 °acct- ing equipment; dents," all will be considered "one accident." Page 14 of 15 BM T1 50 01 93 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- ra 0= BM T1 50 01 93 Page 15 of 15 GENERAL PURPOSE ENDORSEMENT POLICY NUMBER: M5J-660-920J5922-TIL-95 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 95 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 flied with us. endorsement. At each anniversary of the policy: r. BM T8 69 04 91 Page t of t Hello