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Home My WebLink About000270.tiff CTSI Colorado Counties Casualty and Property Pool 2013 Excess Property Policy Lexington & Hiscox Summaries are brief outlines of the coverages afforded under the insurance policies. Since summaries are for informational purposes only, they should not be construed to constitute the entire insurance contracts. As the policies may contain additional coverages and restrictions, the exact wording should be consulted. Brief Summary of Property Deductibles This information is provided to present counties with a simple overview of county deductibles in the pool. It does not provide information on limits. The pool insuring agreements contain actual coverages and limits. The county has a $500 deductible for property claims. The pool pays the next$149,500 of each claim CAPP's excess insurance carrier pays up to $100 million per property claim unless otherwise stated in the CAPP Insuring Agreements. CAPP provides up to $1 million of crime coverage (employee dishonesty, robbery, forgery, money) subject to a.$500 deductible. 00027t Gallagher PUBLIC SECTOR ritimiter it rt. • _ k SCHE �LBUS d fowl ,• �f i TIMM 81.88 !NIAiIETi 86111NS ! ,..-. yy II 8 �.: f� ,A • I Colorado Counties Casualty and Property Pool c/o CTSI 800 Grant Street, Ste 400 Denver, CO 80204 2O13 Current Schedule of Insurance Policy Period: January 1, 2013 to January 1, 2014 Date Prepared: March 6, 2013 Prepared by: Arthur J. Gallagher Risk Management Services, Inc. 6399 South Fiddlers Green Circle,Suite zoo Greenwood Village, CO 80111 800.333.3231 303.773.9776(Fax) www.aigrms.com IMPORTANT: This summary is an outline of the coverages by the insurers. It does not include all the terms,coverages,exclusions, limitations,and conditions of the actual contract language. The policies themselves must be read for those details. G.:,Counties Casualty and Property Pool Gallagher PUBLIC SECTOR Named Insured Schedule (as of 1/1/2013) Colorado Counties Casualty and Property Pool including the following members: Alamosa Gilpin Otero Archuleta Grand Ouray Baca Gunnison Park Bent Hinsdale Phillips Chaffee Huerfano Prowers Cheyenne Jackson Pueblo Clear Creek Kiowa Rio Blanco Conejos Kit Carson Rio Grande Costilla Lake Routt Crowley La Plata Saguache Custer Las Animas San Juan Delta Lincoln San Miguel Dolores Logan Sedgwick Eagle Mineral Summit Elbert Moffat Teller Fremont Montrose Washington Garfield Morgan Weld Yuma Page 1 1 Colorado Counties Casualty and Property Pool G Gallagher PUBLIC SECTOR Excess Property — Lexington Carrier: Lexington Insurance Company (Non-Admitted Carrier) Policy Number: 020412751 Policy Period: January 1, 2013 to January 1, 2014 Named Insured: Colorado Counties Casualty and Property Pool, 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 Covered Property: Real &Personal Property,Automobile Physical Damage, and Equipment Breakdown and as per policy form Covered Locations: Refer to Statement of Values Policy Limits: Amounts Coverages $ 100,000,000 Per occurrence subject to following sublimits Sublimits(other than Equipment Breakdown): 1 $ 25,000,000 In the Aggregate for any one policy year of Earthquake $ 5,000,000 In the Aggregate for any one policy year for Flood loss in Zones A,AO,AE, AH, A1-30, A99,AR $ 50,000,000 In the Aggregate for any one policy year for all Other Flood Combined $ 10,000,000 Newly acquired property, per location are to be reported to the Company within 90 days of acquisition $ 5,000,000 Builders'Risk, renovations, repairs made by the Insured at any location (including new locations with total contract cost under$5,000,000)within the territorial limits of the policy, any one occurrence $ 1,000,000 Builder's Risk Soft Costs/Additional Expenses; $500,000 any unscheduled location, any one occurrence $ 50,000 Personal Property of Others while on the Insured's property $ 1,000,000 Miscellaneous Unnamed Locations $ 1,000,000 Errors and Omissions 5ublimits are part of and not in addition to the Policy Limit of liability. These Sublimits do not increase the Policy Limit of Liability or any other Sublimit. All Sublimits are Per Occurrence unless otherwise indicated. Page 12 Colorado Counties Casualty and Property Pool G Gallagher PUBLIC SECTOR Excess Property - Lexington (Continued) Sublimits(other than Equipment Breakdown) (Cont'd): $ 10,000,000 Ordinance Deficiency $ 10,000,000 Extra Expense— No monthly limitation based on period of restoration as defined in the policy $ 1,000,000 Property In Transit $ 25,000 In the Aggregate Pollution Clean Up and Removal, each County listed as a Named Insured $ 25,000 Mold/Fungus Exclusion with exception Endorsement $ 100,000 Data Extension Endorsement Equipment Breakdown Limits: Amounts Coverages $ 100,000,000 Per Accident(as defined in policy) Sublimits: $ 1,000,000 Extra Expense $ 5,000,000 Builder's Risk $ 1,000,000 Expediting Expense $ 1,000,000 Hazardous Substances $ 1,000,000 Spoilage(includes Ammonia Contamination) Included Water Damage $ 500,000 Data Restoration $ 2,500,000 Ordinance Deficiency Excluded Business Income $ 5,000,000 Newly Acquired Locations—90 Day Reporting $ 25,000 Mold/Fungus—Named Perils Deductible Amounts Coverages $ 150,000 Per Occurrence except 5% of TIV at the As respects locations wholly or partially within a Flood Zone A Time of Loss at area (as defined by FEMA) Each Location subject to a minimum of $1,000,000 $ 5,000 Equipment Breakdown/ Per Accident except $ 10,000 Equipment Breakdown Per Accident for the Snake River Water Treatment Facilities in Dillon, CO 10 Days Builders Risk Soft Costs Page 13 Colorado Counties Casualty and Property Pool G Gallagher PUBLIC SECTOR Excess Property - Lexington (Continued) Covered Perils: Direct Physical Loss except where specifically excluded Manuscript Property Form Coinsurance: None Valuations: Real &Personal Property at Replacement Cost and/or Per Policy Form Vehicle Damage and Mobile Equipment Damage- Actual Cash Value Time Element at Actual Loss Sustained Terms/Conditions: • Occurrence Limit of Liability Endorsement—Clause 2b Deleted • Pollution, Contamination, Debris Removal Exclusion Endorsement • Standard Property Conditions • Combined Property/B&M Millennium Endorsement • Mold/Fungus Exclusion with Named Peril Sublimit • Terrorism Exclusion —Certified and Non-Certified Acts • Notice of Cancellation is 90 days except 10 days for non-payment of premium • Soft Costs/Additional Expense Endorsement Policy Territory: • Property located within the 50 United States Exclusions Include but • Crime, Employee Dishonesty are not Limited to: Pollution, Mold or Fungus (except where specifically • ( p p y provided in the policy or by specific endorsement) • Business Income/Rental Value • Nuclear • Inventory shortage, mysterious disappearances Minimum Earned Premium: 25% Page 14 Colorado Counties Casualty and Property Pool G Gallagher PUBLIC SECTOR Excess Property - Lexington (Continued) Claims Reporting CTSI as Claims Administrator for CAPP is to report claims when claim reaches 50% Instructions: of the Deductible or if a serious catastrophic claim such as fire,flood, earthquake, etc. Claims are to be reported to: Lexington Insurance Company C/o AIG Domestic Claims, Unit II 101 Hudson Street, 20th Floor Jersey City, NJ 07302 Easylink Fax: 866-947-1331 Main Fax: 201-631-5060 Alternate Fax: 201-631-5024 Parsippanvcommercialproperty@AIG.com Copies of any claims are also to be sent to: Arthur J. Gallagher Risk Management Services, Inc. 6399 S. Fiddler's Green Circle, Ste 200 Greenwood Village, CO 80111 Att: Kendall Trump Voice Mail: 303-889-2570 Direct E-Mail: kendall trump@ajg.com Claims E-mail: AJGDenverClaims@a'g.com Claims Fax Number: 303-220-7010 Page 15 LEXINGTON INSURANCE COMPANY Administrative Offices:100 Summer Street, Boston,Massachusetts 02110-2103 (hereinafter called the Company) COMMERCIAL PROPERTY POLICY DECLARATIONS POLICY NUMBER: 020412751 RENEWAL OF: 020412751 ITEM 1. Named Insured: COLORADO COUNTIES CASUALTY AND PROPERTY POOL Address: C/0 CTSI 800 GRANT ST, SUITE 400 ' DENVER, Co 80203 ITEM 2. Policy Period: From 01/01/2013 To 01/01/2014 at 12:01 A.M. Standard Time at the address of the named insured shown above. ITEM 3. Limit of Insurance: $100,000,000 PER OCCURRENCE AND IN THE PRIMARY SUBJECT TO THE SUBLIMITS AS PER POLICY FORM Total Premium $939,012 Minimum Earned Premium $234,753 ITEM 4. Perils: ALL RISK OF DIRECT PHYSICAL LOSS OR DAMAGE INCLUDING FLOOD, EARTHQUAKE AND EQUIPMENT BREAKDOWN ITEM 5. Description of Property Covered: Coinsurance REAL AND PERSONAL PROPERTY, AUTOMOBILE PHYSICAL DAMAGE, EXTRA EXPENSE AND AS FURTHER DESCRIBED IN THE POLICY FORM 'This contract is delivered as a surplus fine coverage under the 'Nonadmitted Insurance Act.'The Insurer issuing this contract is not licensed in Colorado but is an approved nonadmitted insurer. There is no protection under the provisions of the 'Colorado Insurance Guaranty Association AcL" Robert F.Barnes ITEM 6. Mortgagee Clause: Loss,if any shall be payable to: • ITEM 7. Forms Attached: See attached forms schedule PRPDEC (Ed.O1 1) Authorized Representative OR LX7119 Countersignature (In states where applicable) CAPP 2013 Property Policy 1 of 83 • • POLICYHOLDER NOTICE Thank you for purchasing insurance from the Chartis companies. Chartis insurance Companies generally pay compensation to brokers and independent agents,and may have paid compensation in connection with your policy. You can review and obtain information about the nature and range of compensation paid by Chartis insurance companies to brokers and independent agents in the United States by visiting our website at www.chartisinsurance.com/producercompensation or by calling 9- S00-706-3902. • .91222(12/09) CAPP 2013 Property Policy 2 of 83 • • • • LEXINGTON INSURANCE COMPANY • Administrative Offices; 100 Summer Street, Boston, Massachusetts 02110-2103 '(hereinafter called the Company) COMMERCIAL PROPERTY POLICY DECLARATIONS LEXINGTON INSURANCE COMPANY • • Notice to Colorado Policyholders This contract is delivered as surplus line insurance under the 'Nonadmitted • Insurance Act.'. The insurer issuing this contract is not admitted in Colorado but is an approved nonadmitted insurer. There, is no protection under the provisions of the 'Colorado Insurance Guaranty Association Act' • If this policy is written on a claims-made basis, the following applies: This policy is a claims-made policy which provides liability coverage only if a claim is made during the policy period or any applicable extended reporting period. Colorado Fraud Warning. • It is unlawful to knowingly provide false, incomplete, or misleading facts or information to an insurance company for the purpose of defrauding or attempting,to defraud the company. Penalties may include imprisonment, fines, denial of insurance, and civil damages. Any insurance company or agent of an insurance company who knowingly provides false, • incomplete, or misleading facts or information to a policyholder or claimant for the purpose of defrauding or attempting to defraud the policyholder or claimant with regard to a settlement or award payable from insurance proceeds shall be reported to the Colorado Division of Insurance within the Department of Regulatory Agencies. • • • • • PRPDEC(Ed.01/91) LX111a - - CAPP 2013 Property Policy 3 of 83 FORMS SCHEDULE • Named Insured: COLORADO COUNTIES CASUALTY AND PROPERTY POOL Policy No: 020412751 Effective Date: 01/01/2013 Form Number Edition Date Endorsement Number Title PRPDEC 01/91 PROPERTY DEC PRFIRS 01/91 FIRE SCHEDULE PR9014 08/06 OCCURRENCE LIMIT OF LIABILITY LX9512 08/02 MOLD/FUNGUS EXCLUSION PR9015 08/06 POLLUTION CONTAMINATION FORM PR9019 01/94 STANDARD PROPERTY CONDITIONS 96554 04/08 TERRORISM EXCLUSION PR9514 09/02 PROPERTY ENDORSEMENT PR9885 11/05 COVERAGE TERRITORY END Y69813 02/98 COMB.PROP/B&M MILLENNIUM END M/S FORM MANUSCRIPT FORM ENDT A NAMED INSURED END ENDT B SOFT COSTS/ADDITIONAL EXP END ENDT C AMENDMENT TO END PR9014 LX9512NPS ENDT D MOLD/FUNGUS EXCL WITH NAMED PERIL SUBLIMIT DOC018(Ed.12/87) LX0295 CAPP 2013 Property Policy 4 of 83 FIRE Schedule of Covered Locations Policy Number: 020412751 Issued to: COLORADO COUNTIES CASUALTY AND PROPERTY POOL Description of Premises Limit Percent of Coins LOCATED PER SCHEDULE OF VALUES ON FILE PER POLICY FORM WITH LEXINGTON INSURANCE COMPANY AND ENDORSEMENTS • PRFIRS(Ed.01/91} Page 1 of 1 Dom CAPP 2013 Property Policy 5 of 83 OCCURRENCE LIMIT OF LIABILITY ENDORSEMENT it is agreed that the folloWng special terms and conditions apply to this policy: 1. The limit of liability or Amount of Insurance shown on the face of this policy, or endorsed on this policy, is the total limit of the Company's liability applicable to each occurrence, as hereafter defined. Not'Mthstanding any other terms and conditions of this policy to the contrary, in no event shall the liability of the Company exceed this limit or amount irrespective of the number of locations involved. The term "occurrence" shall mean, any one loss, disaster, casualty, or series of losses, disasters, or casualties, arising out of one event. When the term applies to loss or losses from the perils of tornado, cyclone, hurricane, windstorm, hail,flood, earthquake,volcanic eruption, riot riot attending a strike, civil commotion, vandalism and malicious mischief, or terrorism, one event shall be construed to be all losses arising during a continuous period of 72 hours. When filing proof of loss, the Insured may elect the moment at which the 72 hour period shall be deemed to have commenced, which may not be earlier than the time when the first loss to covered property occurs. 2. The premium for this policy is based upon the Statement of Values provided to the Insurer(s) by or on behalf of the Insured and kept on file by the Insurer(s). In the event of loss under the policy, the liability of the Insurer(s) shall be limited to the least of the following: a.) The actual adjusted amount of loss, less applicable deductible(s); b.) As respects each location insured by this Policy, REFER TO ENDORSEMENT C percent of the total combined stated values for all categories of covered property(e.g. building,contents) and other covered exposures {e.g., business income, extra expense, rental loss), shown for that location on the latest statement of values or other documentation on file with the insurer. c.) My other Limit of Liability or Sublimit of Insurance or Amount of Insurance specifically stated in this policy to apply to any particular insured loss or coverage or location. PR9014(08108) LX1083 CAPP 2013 Property Policy 6 of 83 ENDORSEMENT This endorsement,effective 12:01 AM 01/01/2013 Forms a part of policy no.: 020412751 Issued to:COLORADO COUNTIES CASUALTY AND PROPERTY POOL By: LEXINGTON INSURANCE COMPANY THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. MOLD /FUNGUS EXCLUSION In consideration of the premium charged, it is hereby understood and agreed that this policy is amended as follows. The Company shall not be liable for any loss or damage caused by, arising out of, contributed to, or resulting from fungus, mold(s), mildew or yeast or any spores or toxins created or produced by or emanating from such fungus,mold(s),mildew or yeast (a) fungus includes, but is not limited to, any of the plants or organisms belonging to the major group fungi, lacking chlorophyll, and including mold(s), rusts,mildews,smuts and mushrooms; - (b) mold(s) includes, but is not limited to, any superficial growth produced on damp or decaying organic matter or on living organisms, and fungi that produce mold(s); (c) spores means any dormant or reproductive body produced by or arising or emanating out of any fungus, mold(s),mildew,plants, organisms or microorganisms, regardless of any other cause or event that contributes concurrently or in any sequence to such loss. All other terms, conditions, definitions, exclusions, limitations and provisions of the Policy remain the same. eldP111.' Authorized Representative OR Countersignature (In states where applicable) Lx9512(08/021 • CAPP 2013 Property Policy 7 of 83 POLLUTION,CONTAMINATION, DEBRIS REMOVAL EXCLUSION ENDORSEMENT 1. Property Not Covered This policy does not cover land, land values or water. 2. Pollution and Contamination Exclusion. This policy does not cover loss or damage caused by, resulting from, contributed to or made worse by actual, alleged or threatened release, discharge, escape or dispersal of CONTAMINANTS or POLLUTANTS, all whether direct or indirect, proximate or remote or in whole or in part caused by, contributed to or aggravated by any physical damage insured by this policy. Nevertheless, if fire is not excluded from this policy and a fire arises directly or indirectly from seepage or contamination or pollution, any loss or damage insured under this policy arising directly from that fire is insured, subject to the provisions of this policy. CONTAMINANTS or POLLUTANTS means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke,vapor, soot, fumes, acids, alkalis, chemicals and waste, which after its release can cause or threaten damage to human health or human welfare or causes or threatens damage, deterioration, loss of value, marketability or loss of use to property insured hereunder, including, but not limited to, bacteria, virus,or hazardous substances as listed in the Federal Water, Pollution Control Act, Clean Air Act, Resource Conservation and Recovery Act of 1978, and Toxic Substances Control Act or as designated by the U. S. Environmental Protection Agency. Waste includes materials to be recycled, reconditioned or reclaimed. This exclusion shall not apply when loss or damage is directly caused by fire, lightning, aircraft impact, explosion, riot civil commotion, smoke, vehicle impact, windstorm, hail, vandalism, malicious mischief. This exclusion shall also not apply when loss or damage is directly caused by leakage or accidental discharge from automatic fire protective systems. 3. Asbestos, Dioxin or Polychlorinated Biphenols Exclusions This policy does not cover- a) Asbestos, dioxin or polychlorinated biphenols (hereinafter all referred to as "Materials") removal from any good, product or structure unless the asbestos is itself damaged by fire, lightning, aircraft impact, explosion, riot, civil commotion, smoke, vehicle impact, windstorm or hail, vandalism, malicious mischief, leakage or accidental discharge from automatic fire protective system. bl Demolition or increased cost of reconstruction, repair, debris removal or loss of use necessitated by the enforcement of any law or ordinance regulating such Materials; c) Any governmental direction or request declaring that such Materials present in or part of or utilized on any undamaged portion of the insured's property can no longer be used for the purpose for which it was intended or installed and must be removed or modified. The exception to exclusion 3(a), above, does not apply to payment for the investigation or defense of any loss, damage or any undamaged portion of the insured's property can no longer be used for the purpose for which it was intended 4. Debris Removal Exclusion The Company will pay the expense within the sum insured to remove debris of insured property damaged or destroyed by an insured peril during the policy term. The Company will not pay the expense to: a) Extract contaminants or pollutants from the debris;or b) Extract contaminants or pollutants from land or water; or • PR9016108/06) • LX1093 CAPP 2013 Property Policy 8 of 83 c) Remove, restore or replace contaminated or polluted land or water;or d) Remove or transport any property or debris to a site for storage or decontamination required because the property or debris is affected by pollutants or contaminants, whether or not such removal,transport,or decontamination is required by law or regulation. It is a condition precedent to recovery under this extension that the Company shall have paid or agreed to pay for direct physical loss or damage to the property insured hereunder and that the Insured shall give written notice to the Company of intent to claim for cost of removal of debris or cost to clean up not later than 180 days after the date of such physical loss or damage. 5. Authorities Exclusion . Notwithstanding any of the provisions of this policy, the Company shall not be liable for loss, damage, costs, expenses, fines or penalties incurred or sustained by or imposed on the Insured at the order of any Government Agency,Court or other Authority arising from any cause whatsoever. PR9015(0a(0a) LX1093 CAPP 2013 Property Policy 9 of 83 LEXINGTON INSURANCE COMPANY Standard Property Conditions This endorsement effective 01/01/2013 forms a part of Policy Number 020412751 issued to COLORADO COUNTIES CASUALTY AND PROPERTY POOL by LEXINGTON INSURANCE COMPANY (hereinafter called"the Company"). In consideration of the premium charged,the following clauses are hereby made applicable under this policy. MINIMUM EARNED PREMIUM CLAUSE In the event of cancellation of this policy by the Insured, a minimum premium of $234,753 shall become earned, any provision of the policy to the contrary notwithstanding. Failure of the Insured to make timely payment of premium shall be considered a request by the Insured for the Company to cancel on the Insured's behalf. In the event of such cancellation for non-payment of premium,the minimum earned premium shall be due and payable;provided,however,such cancellation shall be rescinded if the Insured remits and the Company receives the full policy premium with 10 days after the date of issuance of the cancellation notice. Such re- mittance and acceptance by the Company shall not effect the minimum earned premium provision of this endorsement. II In the event of any other cancellation by the Company,the earned premium shall be computed pro-rata, not subject to the minimum earned premium. POLICY DEDUCTIBLE Each claim for loss or damage separately occurring shall be adjusted separately and from each such adjusted claim,the amount of $150,000 shall be deducted. Notwithstanding the foregoing, the deductible amount applying to certain perils) insured against by this policy shall be as follows: deductible applying to REFER TO POLICY FORMS AND ENDORSEMENTS deductible applying to FOR SELF-INSURED RETENTION CONDITIONS deductible applying to deductible applying to deductible applying to In the event of any other insurance covering the property insured hereunder, whether or not concurrent, the deductible(s) specified herein shall apply in full against that portion of any claim for loss or damage which the Company is called upon to pay under the provisions of the Apportionment Clause irrespective of any provisions to the contrary of such other insurance. CANCELLATION CLAUSE Except and to the extent of the Minimum Earned Premium Clause which is part of this policy, this clause supersedes other cancellation clauses made a part of this policy. CANCELLATION:This policy may be cancelled by the Insured by surrender thereof to the Company or by mailing to the Company written notice stating when thereafter such cancellation shall be effective.This policy may be cancelled by the Company by mailing to the Insured, at the mailing address shown in this policy or last known address, written notice, stating when, not less than 90 days thereafter (10 days for non-payment of premium) such cancellation shall be ef- fective. The effectiveness of cancellation is not dependent on the return of unearned premium with the notice. Proof of mailing of notice as aforesaid shall be sufficient proof of notice.The effective date and hour of cancellation stated in the notice shall become the end of the policy period. Delivery of such written notice either by the Insured or the Company shall be equivalent to mailing. If the Insured cancels, earned premium shall be computed in accordance with the cus- tomary short rate table and procedure. If the Company cancels,earned premium shall be computed pro rata. Premium adjustment shall be made as soon as practicable after cancellation becomes effective. SERVICE OF SUIT CLAUSE Service of Suit: In the event of failure of 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 com- mence 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 or process in such suit may be made upon Counsel, Legal Department, Company stated on Declarations, 100 Summer Street, Boston, Massachusetts, 02110-2103,or his or her representative,and that in any suit instituted against the Company upon this policy,the Company will abide by the final decision 1of 2 PR9019 fEd.01/94) Lx1101 CAPP 2013 Property Policy 10 of 83 of such court or of any appellate court in the event of an 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 successor or successors in 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 policy 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. WAR RISK EXCLUSION CLAUSE The Company shall not be liable for any loss, caused directly or indirectly, by (1) hostile or warlike action in time of peace or war, whether or not declared, including action in hindering, combating or defending against an actual, inr pending or expected attack (a) by government or sovereign power (dejure 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 force (2) any weapon of war employing atomic fission or radioactive force whether in time of peace or war, whether or not its discharge was accidental; (3) insurrection, rebellion, revolution, civil war, usurped power,or action taken by government authority in hindering,combating,or defending against such an occurrence, seizure or de- struction; (4) any consequence of any of the foregoing. NUCLEAR EXCLUSION CLAUSE The Company shall not be liable for loss by nuclear reaction or nuclear radiation or radioactive contamination all whether controlled or not,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. If the peril of fire is insured under this policy, then, subject to the foregoing and all provisions of this policy, direct loss by fire resulting from nuclear reaction or nu- clear radiation or radioactive contamination is insured against by this policy. SALVAGE AND RECOVERY CLAUSE All salvages, recoveries and payments recovered or received either prior or subsequent to a loss settlement under this policy shall be applied as if recovered or received prior to the said settlement and all necessary adjustments shall be made by the parties hereto, including deduction of the Company's cost of recovery or salvage. REPORTING CLAUSE Notwithstanding that the Insured may be obligated to report full values for premium purposes,the Company's maximum limit of liability shall not exceed that amount stated as the policy limit of liability. PROOF OF LOSS AND PAYMENT • The Insured shall complete and sign a sworn proof of loss within ninety 190) days after the occurrence of a loss (unless such period be extended by the written agreement of the Company)stating the time, place and cause of loss, the interest of the Insured and of all others in the property,the sound value thereof and the amount of loss or damage thereto, and all other insurance thereon. All adjusted claims shall be due and payable Thirty (30) days after the presentation and acceptance of satisfactory proofs) of loss at the office of the Company at 100 Summer Street, Boston, Massachusetts 02110-2103. GOVERNMENT ACTIVITY CLAUSE The Company shall not be liable for loss or damage caused by or resulting from: (1) the seizure or destruction of prop- erty insured by this policy by any government body, including any customs or quarantine action, or (2) confiscation or destruction of any property by order of any government or public authority, except an order to destroy property to pre- vent the spread of fire or explosion. IN WITNESS WHEREOF, the Company has caused this policy to be executed and attested, but this policy shall not be valid unless countersigned in the Declarations by one of its duly authorized representatives. I , Secrete • -tee sitf€n 2of .2 PR9019(Ed.01/94) LX1101 CAPP 2013 Property Policy 11 of 83 ENDORSEMENT This endorsement, effective 1201 AM 01/01/2013 Forms a part of policy no.: 020412751 Issued to:COLORADO COUNTIES CASUALTY AND PROPERTY POOL By: LEXINGTON INSURANCE COMPANY THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. TERRORISM EXCLUSION -CERTIFIED AND NON-CERTIFIED ACTS This insurance does not apply to loss, injury, damage,claim or suit,arising directly or indirectly as a result of an "act of terrorism", which is defined in the Terrorism Risk Insurance Act of 2002, as amended by the Terrorism Risk Insurance Program Reauthorization Act of 2007 (collectively, "TRIA")as follows: (1) ACT OF TERRORISM.- (A)CERTIFICATION. - The term "act of terrorism" means any act that is certified by the Secretary [of the Treasury], in concurrence with the Secretary of State, and the Attorney General of the United States- (I) to be an act of terrorism; (ii) to be a violent act or an act that is dangerous to- (I) human life; (II) property;or (III) infrastructure; (iii) to have resulted in damage within the United States,or outside of the United States in the case of- (I) an air carrier or vessel[described in TRIA]; or (II) the premises of a United States mission;and (iv) to have been committed by an individual or individuals as part of an effort to coerce the civilian population of the United States or to influence the policy or affect the conduct of the United States Government by coercion. (B) LIMITATION.- No act shall be certified by the Secretary as an act of terrorism If- (i) the act is committed as part of the course of a war declared by the Congress, except that this clause shall not apply with respect to any coverage for workers' compensation;or (ii) property and casualty insurance losses resulting from the act, in the aggregate, do not exceed$5,000,000. (C) DETERMINATIONS FINAL. -Any certification of, or determination not to certify, an act as an act of terrorism under this paragraph shall be final, and shall not be subject to judicial review. (D)NONDELEGATION. - The Secretary may not delegate or designate to any other officer, employee, or person, any determination under this paragraph of whether, during the effective period of the Program, an act of terrorism has occurred.This insurance also does not apply to loss, injury,damage,claim or suit,arising directly or Indirectly as a result of a "non-certified act of terrorism", which means any act that is not an "act of terrorism",as defined above,that (1) involves the use of force or violence against person or property; (2) is dangerous to human life or property;or (3) interferes with or disrupts an electronic or communication system;and (4) is undertaken by any group or person, whether or not acting on behalf of or in any connection with any organization,government, power,authority or military force,when the effect is to intimidate, coerce or harm: 96554 (4/08) Page 1 of 2 CAPP 2013 Property Policy 12 of 83 (A)a government; (B) the civilian population of a country,state or community;or (C)to disrupt the economy of a country,state or community. All other terms and conditions of the policy are the same. [ h7 Authorized Representative or Countersignature(in States Where Applicable) 96554 (4/08) Page 2 of 2 CAPP 2013 Property Policy 13 of 83 ENDORSEMENT This endorsement,effective 12:01 AM 01/01/2013 Forms a part of policy no.: 020412751 Issued to:COLORADO COUNTIES CASUALTY AND PROPERTY POOL By:LEXINGTON INSURANCE COMPANY PROPERTY ENDORSEMENT It is noted and agreed that this policy is hereby amended as follows: The insurer will not pay for Damage or Consequential loss directly or indirectly caused by,consisting of, or arising from: 1. Any functioning or malfunctioning of the intemet or similar facility, or of any intranet or private network or similar facility, 2. Any corruption, destruction, distortion, erasure or other loss or damage to data, software, or any kind of programming or instruction set, 3. Loss of use or functionality whether partial or entire of data, coding, program, software, any computer or computer system or other device dependent upon any microchip or embedded logic, and any ensuing liability or failure of the Insured to conduct business. This Endorsement shall not exclude subsequent damage or Consequential loss, not otherwise excluded, which itself results from a Defined Peril. Defined Peril shall mean: Fire, Lightning, Earthquake, Explosion, Falling Aircraft, Flood, Smoke,Vehicle Impact,Windstorm or Tempest. Such Damage or Consequential loss described in 1, 2, or 3 above is excluded regardless of any other cause that contributed concurrently or in any other sequence. All other terms, conditions and exclusions of this policy remain unchanged. • tfriPtdie Authorized Representative OR Countersignature (In states where applicable) P119514(091021 CAPP 2013 Property Policy 14 of 83 ENDORSEMENT This endorsement,effective 12:01 AM 01/01/2013 Forms a part of policy no.: 020412751 Issued to:COLORADO COUNTIES CASUALTY AND PROPERTY POOL By: LEXINGTON INSURANCE COMPANY COVERAGE TERRITORY ENDORSEMENT This endorsement modifies insurance provided under the following: Payment of loss under this policy shall only be made in full compliance with all United States of America economic or trade sanction laws or regulations, including, but not limited to, sanctions, laws and regulations administered and enforced by the U.S. Treasury Department's Office of Foreign Assets Control ("OFAC"). • Authorized Representative OR Countersignature (In states where applicable) PR988 5 1 111061 CAPP 2013 Property Policy 15 of 83 ENDORSEMENT This endorsement,effective 12:01 AM 01/01/2013 Forms a part of policy no.: 020412751 Issued to:COLORADO COUNTIES CASUALTY AND PROPERTY POOL By: LEXINGTON INSURANCE COMPANY COMBINED PROPERTY/BOILER &MACHINERY MILLENNIUM ENDORSEMENT This policy is hereby amended as follows: A. The Insurer will not pay for Damage or Consequential Loss directly or indirectly caused by, consisting of, or arising from, the failure of any computer, data processing equipment, media microchip, operating systems, microprocessors (computer chip), integrated circuit or similar device, or any computer software, whether the property of the Insured or not, and whether occurring before, during or after the year 2000 that results from the inability to: 1. correctly recognize any date as its true calendar date; 2, capture, save, or retain, and/or correctly manipulate,interpret or process any data or information or command or instruction as a result of treating any date other than its true calendar date; and/or 3. capture, save, retain or correctly process any data as a result of the operation of any command which has been programmed into any computer software, being a command which causes the loss of data or the inability to capture,save,retain or correctly process such data on or after any date. B. It is further understood that the Insurer will not pay for the repair or modification of any part of an electronic data processing system or its related equipment, to correct deficiencies or features of logic or operation. C. It is further understood that the Insurer will not pay for Damage or Consequential Loss arising from the failure, inadequacy, or malfunction of any advice, consultation, design, evaluation, inspection, installation, maintenance, repair or supervision done by the Insured or for the Insured or by or for others to determine, rectify or test, any potential or actual failure, malfunction or inadequacy described in A. above. Such Damage or Consequential Loss described in A, B, or C above, is excluded regardless of any other cause that contributed concurrently or in any other sequence. This endorsement shall not exclude subsequent Damage or Consequential Loss, not otherwise excluded,which itself results from a Defined Peril. Defined Peril shall mean fire, lightning,explosion, aircraft or vehicle impact, falling objects, windstorm, hail, tornado, hurricane, cyclone, riot, strike, civil commotion, vandalism, malicious mischief, earthquake, volcano, tsunami, freeze or weight of snow, sudden and accidental breakdown of an object, including mechanical and electrical breakdown. All other terms, conditions and exclusions of this policy remain unchanged. AUTHORIZED REPRESENTATIVE 69813(2/98) OR Countersignature (In states where applicable) CAPP 2013 Property Policy 16 of 83 Coverage Summary 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 $100,000,000 per occurrence. For sublimits refer to Insuring Agreement, paragraph III. Insuring Agreement I. NAMED 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, trustees 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 Coverage applies to property located within the 50 states comprising the United States of American and the District of Columbia. III. ULTIMATE NET LOSS In calculating the amount of Ultimate Net Loss, this insurance is deemed to have the following maximum sublimits: A. $ 25,000,000 In the aggregate annually as respects Earthquake loss. B. $ 5,000,000 In the aggregate annually as respects any Flood loss in Zones A, AO, AE, AH,Al-30, A99, AR. C. $ 50,000,000 In the aggregate annually as respects all other Flood loss. D. $ 50,000,000 In the aggregate annually for all Flood losses combined. Name of Insured: Colorado Counties Casualty&Property Pool Page 1 of 21 Policy No.020412751 Policy Term: January 1,2013 to January 1,2014 CAPP 2013 Property Policy 17 of 83 E. $ 10,000,000 Newly acquired property any one Occurrence; with values over $10,000,000 to be reported to this Company within 90 days of acquisition. F. $ 5,000,000 Builders risks, renovations, repairs made by the Insured at any location (including new locations with total contract cost under$5,000,000) within the territorial limits of the policy, any one occurrence. G. $ 1,000,000 Builders Risk Soft Costs/Additional Expenses per Company Endorsement H. $ 1,000,000 At any unscheduled location, any one occurrence. I. $ 50,000 Personal property of Others while on the Insured's property. J. $ 10,000,000 Ordinance Deficiency K. $ 10,000,000 Extra Expense L. $ 1,000,000 Property in Transit M. $ 1,000,000 Errors or Omissions N. $ 25,000 in the Annual Aggregate Pollution Clean Up and Removal, each County listed as a Named Insured O. $ 25,000 Mold/Fungus Exclusion Terms per Company Endorsement Policy Deductible: Each claim for loss or damage separately occurring shall be adjusted separately and from each adjusted claim, the amount of$150,000 shall be deducted. Notwithstanding the foregoing, the deductible amount applying to certain peril(s) insured against by this policy shall be as follows: Flood Deductible: 5% of Total Insurable Values at the time of the loss at each location involved in the loss, or damage subject to a minimum of$1,000,000 any one occurrence, as respects locations wholly or partially within Special Flood Hazard Areas (SFHA), areas of 100-year flooding, as defined by the Federal Emergency Management Agency(FEMA): Equipment Breakdown $ 5,000 per Accident, except $10,000 per Accident for the Snake River Waste Water Treatment facilities in Dillon 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 County Technical Services, Inc. Claims Management Department. This Service Organization shall perform the following duties: Name of Insured: Colorado Counties Casualty&Property Pool Page 2 of 21 Policy No.020412751 Policy Term: January 1,2013 to January 1,2014 CAPP 2013 Property Policy 18 of 83 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. Property Insurance AGREEMENT A—BUILDING AND CONTENTS: Underwriters agree, subject to the limitations, terms and conditions of this Insurance, to indemnify the Insured for risks of direct 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. 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. VALUABLE PAPERS: The term Valuable Papers shall mean written, printed or otherwise inscribed documents and records, including books, maps,film, drawings, abstracts, deeds, mortgages and manuscripts, but does not mean money and securities, but includes additional Name of Insured: Colorado Counties Casualty&Property Pool Page 3 of 21 Policy No.020412751 Policy Term: January 1,2013 to January 1,2014 CAPP 2013 Property Policy 19 of 83 costs to research or restore damaged documents, drawings or records. 5. ACCOUNTS RECEIVABLE: The term "Accounts receivable" shall mean: a. All sums due the Insured from customers provided the Insured is unable to effect collections 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: c. Collection expense in excess of normal collection caused and made necessary because of such loss or damage; d. Other expenses when reasonably incurred by the Insured in re-establishing records of accounts receivable following such loss and /or damage. The following Special exclusions apply to Accounts Receivable Coverage; this policy does not insure against: 1) Loss due to bookkeeping, accounting or billing errors or omissions; 2) Loss,the proof of which as to factual existence, is dependant 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 of money, securities or other property but only to the extent of such wrongful giving, taking, obtaining or withholding. 6. 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, cyclones), 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). 7. BUILDERS RISK This policy cover projects in the course of construction at any location, other than a Unscheduled Location, within the policy TERRITORY as defined in Section II above, subject to the "total project value" not exceeding the Sublimit shown in Section III ULTIMATE NET LOSS above. Alteration, addition, extension, repairs and/or remodeling projects are included under this extension. Name of Insured: Colorado Counties Casualty&Property Pool Page 4 of21 Policy No.020412751 Policy Term: January 1,2013 to January 1,2014 CAPP 2013 Property Policy 20 of 83 As respects locations other than insured locations, coverage under this extension shall commence when the insured first acquires an insurable interest at the location and shall cease sixty (60) days from the date of such acquisition, or when reported to and accepted by the Company, on the expiration date of this policy, whichever occurs first. No coverage is provided under this property in this extension for property while in transit or while waterbome. The term "total project value"shall mean the cost of all labor, materials, equipment, machinery, or supplies intended to be a permanent part of the completed buildings(s)or structure(s) and in which the Insured has an insurable interest at the time of the loss or damage. Excluded Perils With regard to all property, this insurance does not insure against: '1. Loss by moth, vermin, termites or other insects; wear, tear or gradual deterioration; rust, wet or dry rot, or mold 2. Loss resulting from loss of use, delay or loss of markets. 3. 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. 4. 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. 5. 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. 6. Loss by normal settling, normal shrinkage or normal expansion in foundations, walls, floors or ceilings. 7. Loss by mechanical derangement, inherent vice or latent defect. 8. 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. Name of insured: Colorado Counties Casualty&Property Pool Page 5 of 21 Policy No.020412751 Policy Term: January 1,2013 to January 1,2014 CAPP 2013 Property Policy 21 of 83 9. Loss resulting from shrinkage, evaporation, loss of weight or leakage, unless such loss is caused directly by fire or the combating thereof, lightening, 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. 10. 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. Excluded Property • Animals; • Aircraft • Standing timber, growing crops, land and land values; • Currency, money, notes, and securities; • Bridges, culverts, roadways, streets, walks, or paved surfaces, dams, docks, piers and wharves • water; • Tunnels used for vehicular traffic; underground mines and property therein. The following property not at a Covered Location: • Underground piping, wiring,flues or drains; • Reservoirs, transmission and distribution lines, telephone and power poles and appurtenants, street and highway lighting and signs. The following property not part of museum collections and/or exhibits at a Covered Location: • Furs;jewelry; precious and semi-precious stones, gold, silver, platinum and other precious metals and alloys. 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. Name of Insured: Colorado Counties Casualty&Property Pool Page 6 of 21 Policy No.020412751 Policy Term: January 1,2013 to January 1,2014 CAPP 2013 Property Policy 22 of 83 B (Automobile) the actual cash value of the automobile at the time of loss. Name of Insured: Colorado Counties Casualty&Property Pool Page 7 of 21 Policy No.020412751 Policy Term: January 1,2013 to January 1,2014 CAPP 2013 Property Policy 23 of 83 2. REMOVAL CLAUSE.This Insurance covered 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. 3. 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. 4. 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 calculate the amounts of reimbursement due, and failing to agree, shall submit their differences to the umpire. The award, in writing, duly verified by any two shall determine the point in question. Both parties shall pay the cost of their own appraiser and equally pro rate the cost of the umpire. 5. 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. 6. 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. 7. EXPENSE TO REDUCE OR PREVENT LOSS. This Insurance also covers 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. General Conditions 1. PREMIUM PROVISION See Declarations Page. Name of Insured; Colorado Counties Casualty&Property Pool Page 8 of 21 Policy No.020412751 Policy Term: January 1,2013 to January 1,2014 CAPP 2013 Property Policy 24 of 83 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. CURRENCY The premium and losses under this Insurance are payable in United States currency. Payment of premium shall be made to Arthur J. Gallagher Risk Management Services, Inc. 7. 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. 8. 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. 9. MORTGAGE CLAUSE The interest of any mortgagor on property covered hereunder is included as if a separate Name of Insured: Colorado Counties Casualty&Property Pool - Page 9 of 21 Policy No.020412751 Policy Term: January 1,2013 to January 1,2014 CAPP 2013 Property Policy 25 of 83 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. 10.CLAIMS The Insured shall immediately notify Underwriters through County Technical Services, Inc. Claims Management Department by registered mail, of any occurrence, the cost of which is likely to result in payment by the 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 f the Underwriters, their liability under this Insurance is likely to be involved, in which case the Insured and Underwrites shall cooperate to the mutual advantage of both. 11.NOTICE OF LOSS The Insured through County Technical Services, Inc. Claims Management Department 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 agents within ninety(90)days from date of loss a detailed sworn proof of loss. Failure by the Insured or County Technical Services, Inc. to report the said loss or damage and to file such proof of loss as hereinbefore provided shall not invalidate any claim under this Policy for such loss. 12.EXAMINIATION UNDER OATH The Insured shall submit, and so far as is 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. 13.SETTLEMENT OF LOSS All adjusted claims shall be paid or made good to the Insured through County Technical Services, Inc. within sixty(60)days after presentation and acceptance of satisfactory proof if interest and loss at the office of this Company. No loss shall be paid hereunder if the Insured has collected the same from others. 14.LOSS PAYMENTS When it has been determined that Underwriters are liable under this Insurance, Underwriters shall thereafter promptly reimburse County Technical Services, Inc. for all payments made in excess of the amounted stated in the Limits Agreement. All adjusted claims shall be paid or made good within thirty days after their presentation by County Technical Services, Inc. Claims Management Department and acceptance by the Underwriters of satisfactory proof of interest Name of Insured: Colorado Counties Casually&Property Pool Page 10 of 21 Policy No.020412751 Policy Term: January 1,2013 to January 1,2014 CAPP 2013 Property Policy 26 of 83 and loss. 15.NO BENEFIT TO BAILEE This insurance shall in no wise inure directly or indirectly to the benefit of any carrier or other bailee. 16.APPEAL In the event the Insured and Underwriter are unable to agree to the advisability of appealing a judgment, a disinterested attorney, mutually agreeable to the Underwriter 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 fir the services of rendering his recommendation only. The Insured's portion of such fee shall not accrue in the aggregate loss fund. 17.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 18.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. 1.9.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 Name of Insured: Colorado Counties Casualty&Property Pool - Page 11 of 21 Policy No.020412751 Policy Term: January 1,2013 to January 1,2014 CAPP 2013 Property Policy 27 of 83 any such waiver is made prior to the occurrence of said loss or damage. 20.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 statues. 21.ASSIGNMENT Assignment of interest under this Insurance shall not bind the Underwriters until the Underwriters' consent is endorsed hereon. 22.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 part of a set, the measure of loss of or damage to such article 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 foss 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. 23.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 Insured or this Company, in recovering, saving and insurance; nor shall the acts of the p Y, 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. 24.SUIT No suit, action or proceeding for the recovery of any claim under the Policy shall be sustainable in any court of law or equity unless the same be commenced within twelve (12) months 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. Name of Insured: Colorado Counties Casualty&Property Pool Page 12 of21 Policy No.020412751 Policy Term: January 1,2013 to January 1,2014 CAPP 2013 Property Policy 28 of 83 25.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 a court of record in the state in which such appraisal is pending. The appraisers shall then appraise ht the loss, stating separately the actual cash value at the time of loss and the amount of loss, and failing to agree shall submit the differences to the umpire. An award in writing of any two shall determine the amount of toss. 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 the appraisal. 26.CANCELLATION This Policy may be cancelled by the Insured by mailing to the Company written notice stating when thereafter such cancellation shall be effective. This Policy may be 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 (90) ninety days(10 days for nonpayment of premium)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 a adjustable basis the Underwriters shall receive the earned premium hereon or the customary short rate proportion of any minimum premium stipulated herein whichever is 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 earnedpremium hereon or the pro rata 1 proportion of any minimum premium stipulated herein whichever is the greater. 27.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. Name of Insured: Colorado Counties Casualty&Property Pool - Page 13 of 21 Policy No.020412751 Policy Term: January 1,2013 to January 1,2014 CAPP 2013 Property Policy 29 of 83 Subject otherwise to all terms, clauses and conditions heretofore. 28.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. 29.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. 30.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 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 loss. Earth Movement Coverage Earth Movement means: ■ Any earth movement,other than sinkhole collapse, such as earthquake, landslide, mine subsidence or earth sinking, rising or shifting including that caused by subsidence, settling, contraction, or expansion of soils. ■ Eruption, explosion, or effusion of a volcano other than volcanic action. If more than one earth movement or volcanic eruption occurs within any 72 hour period, we'll consider this one occurrence. The 72 hour period will not be shortened by the expiration of the policy. The limit shown in the coverage summary for earthquake is the most this Company will pay for all direct loss or damage caused by a single earthquake. Flood Coverage Name of Insured: Colorado Counties Casually&Property Pool Page 14 of 2I r Policy No.020412751 Policy Term: January 1,2013 to January 1,2014 CAPP 2013 Property Policy 30 of 83 Flood, mudslide or mudflow, and surface water are covered perils. Flood means waves, tides or tidal water, the rising of bodies of water and streams, or the overflowing or breaking of their boundaries, whether driven by wind or not. Surface water means water which accumulates or flows on the surface of the ground, and is created by natural causes such as rain, melted snow, or rising springs, but which follows no defined watercourse and does not gather into or from a natural body of water. This Company is not liable for more than the limits shown in the coverage summary. Transit Extension Insuring Clause 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 the 50 states comprising the United States of America (excluding Hawaii) and the District of Columbia, 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 waterbome). 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, lightening, 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 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. Name of Insured: Colorado Counties Casualty&Property Pool Page 15 of 21 Policy No.020412751 Policy Term: January 1,2013 to January 1,2014 CAPP 2013 Property Policy 31 of 83 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. 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 agreements 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. Extra Expense Coverage • It is agreed that if the property covered under Insuring Agreement A is damaged or destroyed by perils insured against 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". Name of Insured: Colorado Counties Casualty&Property Pool - Page 16 of 21 Policy No.020412751 Policy Term: January 1,2013 to January 1,2014 CAPP 2013 Property Policy 32 of 83 It is further agreed that this extension of coverage shall not operate to increase the Underwriters limits of liability hereunder. Definitions: A. Extra Expense: The term "Extra Expense" means the excess(if any)of the total cost incurred during the period of restoration chargeable to the operation of the insured's business, over and above the total cost that would normally have been incurred to conduct the business during the same period had no damage or destruction occurred. B. Normal: The term "normal" wherever used herein shall mean; the condition that would have existed had no loss occurred. C. Period of Restoration: The term "Period of Restoration"means such length of time commencing with the date of damage and not limited by the date of expiration of this policy, as would be required with the exercise of due diligence and dispatch to repair, rebuild or replace such part of the Insured's property as has been damaged or destroyed. Conditions: A. Resumption of Operations: It is a condition of this Insurance that as soon as practicable, the Insured shall resume normal operations of the business and shall dispense with such extra expense. B. Interruption by Civil Authority: Liability hereunder is extended to include actual loss as covered hereunder, sustained during the period of time, not exceeding two weeks, when as a direct result of a peril insured against, access to the premises in which the property described is located is prohibited by order of civil authority. 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 damages 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, The Company shall not be liable for: A. More than the amount set forth in the limits of liability; B. Loss of income; Name of Insured: Colorado Counties Casualty&Property Pool Page 17 of 21 Policy No.020412751' Policy Term: January 1,2013 to January 1,2014 CAPP 2013 Property Policy 33 of 83 the real or personal property covered hereunder, or The cost of repairing or replacing any of p p Y C. P 9 P 9 the cost of research or other expense necessary to replace or restore damage or destroyed (including s or other recordsfilm, card index systems books of account, abstracts, drawings, Y 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. Pollution Cleanup and Removal Notwithstanding any conditions or terms contained elsewhere in this policy, coverage is extended 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, lightening, 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 the 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 (180)days of either the date of direct physical loss or damage or the Name of Insured: Colorado Counties Casualty&Property Pool Page 18 of 21 Policy No.020412751 Policy Term: January 1,2013 to January 1,2014 CAPP 2013 Property Policy 34 of 83 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. However, these limits will apply separately to each County member listed as a Named Insured. Equipment Breakdown Coverage Limits: Equipment Breakdown: $100,000,000 Per Accident Included in$100,000,000 Limit Extra Expense: $ 5,000,000 Expediting Expenses: $ 1,000,000 Hazardous Substances: $ 1,000,000 Spoilage: $ 1,000,000 (which includes ammonia contamination) Water Damage: $ Included Data Restoration: $ 1,000,000 Ordinance Deficiency: $ 2,500,000 Builders Risk $ 5,000,000 Newly Acquired Locations $ 10,000,000 Newly acquired property; with values over $10,000,000 to be reported to this Company within 90 days of acquisition Unscheduled Locations $ 1,000,000 Deductible: Refer to Policy Deductible in Section III above. Coverage: It is agreed that if the property insured by Insuring Agreement A of Section I is damaged or destroyed by an "Accident"to "covered equipment" during the period of this Insurance, the Underwriters shall be liable for said damage. Definitions: A. Accident: The term "accident" means direct physical loss or damage that results from mechanical breakdown, including rupture or bursting caused by centrifugal force; artificially generated electrical current, including electrical arcing, that disturbs electrical devices, appliances or wires; loss or damage to steam boilers, steam pipes, steam engines or steam turbines caused by or resulting from any condition or event inside such equipment; or loss or damage to hot water boilers or other water heating equipment caused by or resulting from any condition or event inside such boilers or equipment. B. Covered Equipment: The term "covered equipment" means property insured which is built to operate under vacuum or pressure other than weight of contents; or generates,transmits or utilizes energy. Name of Insured: Colorado Counties Casualty&Property Pool Page 19 of 21 Policy No.020412751 Policy Term: January 1,2013 to January 1,2014 CAPP 2013 Property Policy 35 of 83 None of the following is"covered equipment". • A structure, foundation, cabinet, compartment or air supported structure or building; • Insulating or refractory material; • Vehicles, including self-propelled vehicles; • Excavation or constructions equipment; • Sewer piping, underground vessels or piping, any piping forming a part of a sprinkler system; • Water piping other than boiler feed water piping, boiler condensate return piping or water piping forming a part of a refrigerating or air conditioning system; • Equipment manufactured by you for sale; or • Equipment primarily used to generate power, however this does not apply to emergency generators. C. Perishable Goods:The term "perishable goods" means business personal property maintained under controlled conditions for its preservation which is susceptible to loss or damage if controlled conditions change. Additional Coverages: The following additional coverages also apply to loss caused by or resulting from an "accident"to "covered equipment". The limit for each additional coverage is shown in the Equipment Breakdown Schedule. The limits for each additional coverage are not in addition to the limits of coverage for building or business personal property shown in III Ultimate Net Loss. In addition, unless otherwise shown, the coverages and limits for newly acquired property, builders risks, unscheduled locations and extra expense in the policy to which this Coverage Extension is attached also apply to coverage provided by this Coverage Extension. The newly acquired property and extra expense limits are shown in the Equipment Breakdown Schedule. A. Expediting Expenses: If property insured is damaged or destroyed by an"accident", the Underwriters shall be liable for reasonable extra cost to make temporary repairs and expedite permanent repairs or replacement. B. Hazardous Substances: The Underwriters shall be liable for additional expenses incurred for clean-up; repair or replacement; or disposal of property insured which is damaged, contaminated or polluted by any substance other than ammonia that has been declared to be hazardous to health by a governmental agency. The Underwriters shall not be liable for more than the limit for Hazardous Substances shown in the Equipment Breakdown Schedule. C. Spoilage: The Underwriters shall be liable: Name of Insured: Colorado Counties Casualty&Property Pool Page 20 of 21 Policy No.020412751 Policy Term: January 1,2013 to January 1,2014 CAPP 2013 Property Policy 36 of 83 1. or loss of"perishable goods"due to spoilage; 2. for physical damage to "perishable goods" due to contamination from the release of refrigerant, including but not limited to ammonia; 3. for any necessary expenses incurred to reduce the amount of loss under this coverage to the extent that they do not exceed the amount of loss that otherwise would have been payable under this coverage. 4. for physical damage to "perishable goods" due to spoilage caused by an "accident"to equipment that is owned by a utility, landlord, or other supplier of any of the following services: electrical power, communications, waste disposal, air conditioning, refrigeration, heating, gas, air, water or steam. Unless otherwise indicated in the Schedule, the "accident" must occur to equipment within one statute mile of the premises for coverage to apply. If the Insured is unable to replace the "perishable goods" before its anticipated sale, the amount of payment will be determined on the basis of the sales price of the "perishable goods" at the time of the "accident", less discounts and expenses that otherwise would have been incurred. Otherwise payment will be determined in accordance with the Valuation condition. The Underwriters shall not be liable for more than the limit for Spoilage shown in the Equipment Breakdown Schedule. D. Water Damage: If property insured is damaged by water as a result of an "accident"to covered refrigerating or air conditioning vessels and piping, the Underwrites shall not be liable for more than the amount shown in the Equipment Breakdown Schedule for this kind of damage, including salvage expense. E. Ammonia Contamination: If property insured is contaminated by ammonia as a result of an "accident'to "covered equipment" the Underwriters shall not be liable for more than the amount shown in the Equipment Breakdown Schedule for this kind of damage, including salvage expense. Exclusions: A. Electronic Recordings: The Underwriters shall not be liable for loss to electronic recordings caused by electrical or magnetic injury, disturbance or erasing. B. Media: The Underwriters shall not be liable for loss resulting from any defect, virus, loss of data, or other situation within electronic media and records. But if loss or damage from an "accident' results, there shall be liability for that resulting loss. Suspension: When any "covered equipment' is found to be in, or exposed to, a dangerous condition, any representative of the Underwriters may immediately suspend the insurance against loss from an "accident" to that "covered equipment". This can be done by mailing or delivering a written notice o suspension to the address as shown in the policy, or the address where the equipment is located. Once so suspended, the Insured shall receive pro-rata refund of premium. But the suspension will be effective even if a refund has not yet made or offered. Name of Insured: Colorado Counties Casualty&Property Pool - Page 21 of 21 Policy No.020412751 Policy Term: January 1,2013 to January 1,2014 CAPP 2013 Property Policy 37 of 83 ENDORSEMENT A This endorsement,effective 12:01 AM 01/01/2013 Forms a part of policy no.: 020412751 Issued to: COLORADO COUNTIES CASUALTY AND PROPERTY POOL By: LEXINGTON INSURANCE COMPANY • NAMED INSURED ENDORSEMENT It is agreed that the Participating Member Counties named hereunder are included as Named Insureds: 1. Alamosa 26. Lake 2. Archuleta 27. La Plata 3. Baca 28. Las Animas 4. Bent 29. Lincoln 5. Chaffee 30. Logan 6. Cheyenne 31. Mineral 7. Clear Creek 32. Montrose 8. Conejos 33. Morgan 9. Costilla 34. Moffat 10. Crowley 35. Otero 11. Custer 36. Ouray 12. Delta 37. Park 13. Dolores 38, Phillips 14. Eagle 39. Prowers 15. Elbert 40. Pueblo 16. Fremont 41. Rio Blanco 17. Garfield 42. Rio Grande 18. Gilpin 43. Routt 19. Grand 44. Saguache 20. Gunnison 45. San Juan 21. Hinsdale 46. San Miguel 22. Huerfano 47. Sedgwick 23. Jackson 48. Summit. 24. Kiowa 49. Teller LEXDOCO21 LX0404 Page 1 of 2 CAPP 2013 Property Policy 38 of 83 • • 25. Kit Carson 50. Washington • 51. Weld 52. Yuma • • • ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED • Auth rued resentative OR Counterslgna a(In states where applicable) • • LEX00C021 LX0404 - Page 2 of 2 _ CAPP 2013 Property Policy 39 of 83 ENDORSEMENT A This endorsement,effective 12:01 AM 01/01/2013 Forms a part of policy no.: 020412751 Issued to: COLORADO COUNTIES CASUALTY AND PROPERTY POOL By: LEXINGTON INSURANCE COMPANY NAMED INSURED ENDORSEMENT It is agreed that the Participating Member Counties named hereunder are included as Named Insureds: 1. Alamosa 26. Lake 2. Archuleta 27. La Plata 3. Baca 28. Las Animas 4. Bent 29. Lincoln 5. Chaffee 30. Logan 6. Cheyenne 31. Mineral 7. Clear Creek 32. Montrose 8. Conejos 33. Morgan 9. Costilla 34. Moffat 10. Crowley 35. Otero 11. Custer 36. Ouray 12. Delta 37. Park 13. Dolores 38. Phillips 14. Eagle 39. Prowers 15. Elbert 40. Pueblo 16. Fremont 41. Rio Blanco 17. Garfield 42. Rio Grande 18. Gilpin 43. Routt 19. Grand 44. Saguache 20. Gunnison 45. San Juan 21. Hinsdale 46. San Miguel 22. Huerfano 47. Sedgwick LEXDOCO21 LX0404 Page 1 of 2 CAPP 2013 Property Policy 40 of 83 23. Jackson 48. Summit 24. Kiowa 49. Teller 25. Kit Carson 50. Washington 51. Weld 62. Yuma ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED Authorized Representative OR Countersignature(In states where applicable) LEXDOCO21 LX0404 Page 2 of 2 CAPP 2013 Property Policy 41 of 83 ENDORSEMENT B This endorsement,effective 12:01 AM 01/01/2013 Forms a part of policy no.: 020412751 Issued to: COLORADO COUNTIES CASUALTY AND PROPERTY POOL By: LEXINGTON INSURANCE COMPANY SOFT COSTS/ADDITIONAL EXPENSES ENDORSEMENT In consideration of the premium charged, and subject to all terms,conditions, limitations and exclusions of this Endorsement and of the Policy to which this Endorsement is attached, it is hereby agreed that Soft Cost/Additional Expense coverage is added as follows: WAITING PERIOD DEDUCTIBLE: 10 Days per occurrence. No liability shall exist unless the DELAY exceeds the Waiting Period and then the Company's liability shall be for the amount of loss in excess of the stated Waiting Period. The WAITING PERIOD DEDUCTIBLE runs from the date upon which, had the loss or damage not occurred the insured project would have been completed. In the event that DELAY In direct consequence of insured physical loss or damage results from more than one occurrence,a separate WAITING PERIOD DEDUCTIBLE will apply for each occurrence. This deductible is in addition to any other deductible(s) applicable to loss or damage covered by the policy to which this endorsement is attached. SUBLIMIT OF LIABILITY: The total sublimit of liability for which the Company shall be liable under this endorsement in the aggregate shall not exceed $1,000,000 per occurrence per project location. This sublimit is part of and shall not increase to Policy Limit of Liability or any other Sublimit of Liability in this Policy. INSURING AGREEMENT This policy is extended to cover Soft Costs/Additional Expense on an Actual Loss Sustained basis due to delay in completion of the insured property caused by direct physical loss or damage covered under this policy to expenditures which would not have been incurred by the Insured if the DELAY had not occurred, including and limited to: (a) Interest upon money borrowed to finance the contract work; (b) Realty taxes and ground rent; (c) Advertising and promotions expenses; (d) Commission expense; (e) Architects,engineers and consultant fees; (f) Project administration expenses; (g) Insurance premium; (h) Permits and fees. DELAY is the period between the anticipated date of completion and the actual date of completion had loss or damage as covered under this policy not occurred. The Soft Costs coverage shall include expenses necessarily incurred to reduce loss (except expenses incurred to extinguish fire), but not exceeding the amount by which loss otherwise payable is reduced. LEXDOC021 1.10404 Page 1 of 3 CAPP 2013 Property Policy 42 of 83 The Soft Costs coverage provided is subject to the following additional provisions: 1. The Company shall pay Soft Costs incurred from the date that the building or structure would have been completed had no direct physical loss or damage occurred until such time it is completed. 2. The Company shall pay only for the time required with the exercise of due diligence and dispatch to rebuild, repair or replace that part of the property sustaining loss commencing with the date of such loss but not limited by the Policy expiration or termination date of this Policy. • As soon as practical after any loss, the insured shall utilize every available means to reduce the amount of the loss including: a) Resumption of construction, business, business or operations completely or partially; b) Making use of materials, equipment, supplies, or other property at the Insured's premises or elsewhere;or c) Making use of substitute facilities or services where practical; and such reduction will be taken Into account in arriving at the amount of such loss. In the event the construction contract for property described herein contains a penalty clause providing payments to the In sured g for Insu ed for a delay caused by the perils insured against in the completion of the construction, any portion of such penalty inuring to the benefit of the Insured shall be taken into consideration in the settlement of any loss under this extension. ADDITIONAL EXCLUSIONS AND LIMITATIONS The Company shall not be liable for any increase in DELAY caused by or resulting from: 1. The enforcement of any ordinance or law regulating construction, rebuilding, repair, replacement, removal or reconstruction of the work; 2. The interference by strikers or other persons with the transportation of property, the construction, rebuilding, repairing or replacing of property insured hereunder or the occupancy and use of the premises; 3. Any consequential loss; 4. Loss or damage to property not covered by this policy; 5. Non-availability of funds other than insurance reimbursements; 6. Import,export or customs restrictions and/or regulations; - - 7. Alterations, additions, improvements or other changes made in the designs, plans, specifications or other contract documents for the work which are required to effect the repair or replacement of the damaged property; 8. The suspension, lapse or cancellation of or the failure to obtain, maintain or extend any permit, lease, license,contract or purchase order commitments; 9. The failure to use due diligence and dispatch in restoring the damaged property to the condition existing prior to the loss or damage; LEXFOCe21 LX0404 Page 2 of 3 CAPP 2013 Property Policy 43 of 83 10. Any change order or other cause which results in deviation from the original progress schedule, or revisions thereto, and which is independent of insured loss or damage which gives rise to a DELAY, whether occurring prior to or after an Insured DELAY. GENERAL CONDITIONS 1. The Named Insured shall do and concur in doing and permit to be done all such things as may be reasonably practicable to minimize the extent of any interference with the construction schedule so as to avoid or diminish any DELAY resulting therefrom. 2. Upon request by the Company, the Named Insured shall make available all records and information relevant to the determination of loss and expenses related to reducing loss. 3. It is a condition of this insurance that as soon as practical the Named Insured shall begin normal operations. ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED dt Authorized Representative OR Countersignature(In states where applicable) LEXDOC021 LX0404 _ Page 3 of 3 CAPP 2013 Property Policy 44 of 83 ENDORSEMENT C This endorsement,effective 12:01 AM 01/01/2013 Forms a part of policy no.: 020412751 Issued to: COLORADO COUNTIES CASUALTY AND PROPERTY POOL By: LEXINGTON INSURANCE COMPANY AMENDMENT TO ENDORSEMENT PR9014 in consideration of the premium charged, it is hereby agreed that clause 2.b.of the Occurrence Limit of Liability endorsement(Number PR9014)is deleted. ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED ./2de_, A tho Representative OR Countersignature(In states where applicable) LEXD0C021 LX0404 CAPP 2013 Property Policy 45 of 83 ENDORSEMENT D This endorsement,effective 12:01 AM 01101/2013 Forms a part of policy no.: 020412751 Issued to: COLORADO COUNTIES CASUALTY AND PROPERTY POOL By: LEXINGTON INSURANCE COMPANY THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. MOLD!FUNGUS EXCLUSION WITH NAMED PERIL SUBLIMIT In consideration of the premium charged, it is hereby understood and agreed that this policy is amended as follows. The Company shall not be liable for any loss or damage caused by, arising out of, contributed to, or resulting from fungus, mold(s), mildew or yeast; or any spores or toxins created or produced by or emanating from such fungus, mold(s), mildew or yeast; (a) fungus includes, but is not limited to, any of the plants or organisms belonging to the major group fungi,lacking chlorophyll, and including mold(s), rusts, mildews,smuts and mushrooms; (b) mold(s) includes, but is not limited to, any superficial growth produced on damp or decaying organic matter or on living organisms,and fungi that produce mold(s); (c) spores means any dormant or reproductive body produced by or arising or emanating out of any fungus, mold(s), mildew, plants,organisms or microorganisms, regardless of any other cause or event that contributes concurrently or In any sequence to such loss. This exclusion shall not apply to any loss or damage in the form of, caused by, contributed to or resulting from fungus, mold(s),mildew or yeast, or any spores or toxins created or produced by or emanating from such fungus,mold(s), mildew or yeast which the Insured establishes is a direct result of a Covered Loss resulting from, or caused by, fire, lighting, explosion, windstorm or hail, smoke (excluding agricultural smudging and industrial operations), aircraft or vehicles, riot or civil commotion, vandalism, sprinkler leakage, collapse, volcanic action and not otherwise excluded by the Policy, provided that such fungus, mold(s), mildew or yeast loss or damage is reported to the Company within twelve months from the expiration date of the Policy. The Company shall not be liable under this endorsement for more than$25,000 in any one occurrence. This Sublimit is within, and does not increase, the Policy Limit of Liability or any other Sublimit stated in the policy form or any endorsements thereto. All other terms, conditions, definitions, exclusions, limitations and visi e y remain the same. '! r Au zed Representative OR Countersignature(In states where applicable) !X9512 NPS(09!11) CAPP 2013 Property Policy 46 of 83 "es DECLARATIONS HISCOX HISCOX INSURANCE COMPANY INC. (A Stock Company) 233 North Michigan Ave.,Suite 1840 CHICAGO, Illinois, 60601 (914)273-7400 Policy Number: UC21191167.13 Broker No.: US 0001197 Broker Name: Arthur J Gallagher Risk Management Services Policy No.: UC21191167-13 Broker Address: 6399 S Fiddlers Green Cir Ste 200 Greenwood Village,Colorado 80111-4974 Renewal of: UC21191167.12 Commercial Crime Insurance Policy Named Insured: Members of the Colorado Counties Casualty and Property Pool(see endorsement CRI E9622) Mailing Address: c/o County Technical Services, Inc. 800 Grant St Ste 400 Denver,Colorado 80203-2944 Policy Period: 01/01/2013 to 01/01/2014 12:01 A.M.at Your mailing address shown above Limit of Insurance Deductible Amount Insuring Agreements (Per Occurrence) (Per Occurrence) Coverage A:Fidelity (1) Employee Theft $ 1,000,000 $ 150,000 (2) ERISA(Limit Applies Per Plan) Not Covered N/A (3)Clients'Property Not Covered N/A (4) Vendor Theft Not Covered N/A Coverage B:Forgery or Alteration (1)Checks $1,000,000 $ 150,000 (2)Credit, Debit or Charge Cards $ 1,000,000 - $ 150,000 (3) Personal Accounts Not Covered N/A Coverage C:Inside and Outside the Premises (1) Inside the Premises $1,000,000 $ 150,000 (2)Outside the Premises $ 1,000,000 $ 150,000 Coverage D:Computer and Funds Transfer Fraud (1)Computer Fraud $1,000,000 $150,000 (2) Funds Transfer Fraud $1,000,000 $150,000 Coverage E:Money Orders and Counterfeit Money $ 1,000,000 $150,000 Coverage F:Telephone Toll Fraud $250,000 $150,000 Coverage G:Identity Fraud Expense Not Covered N/A Coverage H:Virus and Licensing Violations (1)Virus Restoration $250,000 $150,000 (2) Licensing Violation Fines and Penalties $250,000 $150,000 Coverage I:Expense $50,000 N/A Telephone (914)273-7400 Facsimile(914)273-4716 wow✓.hiscoxusa.com Email hiscox.usa@hiscox.com (Page 1) CAPP 2013 Property Policy 47 of 83 A% DECLARATIONS HISCOX HISCOX INSURANCE COMPANY INC. (A Stock Company) 233 North Michigan Ave.,Suite 1840 CHICAGO, Illinois,60601 (914)273-7400 Policy Number: UC21191167.13 Coverage is provided only if an amount is shown opposite an Insuring Agreement. If the amount is left blank or"Not Covered"is inserted,such Insuring Agreement and any other reference thereto in this policy is deleted. Endorsements Forming Part Of This Policy When Issued: (1) E9603.1.Cancellation Amended (2) E9606.1.Crime Elite Endorsement • (3) E9611.1.Government Conversion(with Faithful Performance) (4) E9622.1.Named Insured Added (5) E9625.1. Persons or Classes of Persons Included (with Sublimit) (6) E9704.1.Colorado Cancellation Of Prior Insurance Issued By Us: By acceptance of this Policy you give us notice cancelling prior policy Nos. N/A ;the cancellation to be effective at the time this Policy becomes effective. Total Premium: $36,312.00 Notice of Claim to: Hiscox Attn:Crime&Fidelity Claims Dept. 520 Madison Avenue,32nd Floor New York, NY 10022 Email-d&oclaims@hiscox.com Fax-212-922-9652 IN WITNESS WHEREOF,the Insurer indicated above has caused this Policy to be signed by its President and Secretary,but this Policy shall not be effective unless also signed by our duly authorized representative. CLI President Secretary (14-1fr Authorized Representative 11/30/2012 Date Telephone (914)273-7400 Facsimile (914).273-4716 www.hiscoxusa.com Email hiscox.usa@hiscox.com (Page 2) CAPP 2013 Property Policy 48 of 83 060 HISCOX Endorsement 1 NAMED INSURED: Members of the Colorado Counties Casualty and Property Pool (see endorsement CRI E9622) E9603.1 Cancellation Amended Page 1 of 1 This endorsement modifies insurance provided under the CRIME INSURANCE Policy Form whether written as a standalone policy or as a module attached to another policy. SCHEDULE Number of Days: 90 Paragraph (ii) of the Cancellation Condition is replaced by the following: (ii)We may cancel this policy by mailing or delivering to the first Named Insured written notice of cancellation at least: (1) 15 days before the effective date of cancellation if We cancel for non-payment of premium;or (2) the Number of Days shown in the Schedule before the effective date of cancellation if We cancel for any other reason. All other terms and conditions remain unchanged. CRI E9603 CW (06/10) Includes copyrighted material of Insurance Services Offices,Inc.,with its permission. Endorsement effective:01/01/2013 Policy No.: UC21191167.13 Endorsement No: 1 Processed Date:12/19/2012 JLQ_. By :Carl Bach (Appointed Representative) CAPP 2013 Property Policy 49 of 83 ego HISCOX Endorsement 2 NAMED INSURED: Members of the Colorado Counties Casualty and Property Pool (see endorsement CRI E9622) E9606.1 Crime Elite Endorsement Page 1 of 2 This endorsement modifies insurance provided under the CRIME INSURANCE Policy Form whether written as a standalone policy or as a module attached to another policy. 1. Paragraph (i) of the Extended Period To Discover Loss Condition is replaced by the following: (i) No later than 120 days from the date of that cancellation. However, this extended period to Discover loss terminates immediately upon the effective date of any other insurance obtained by You,whether or not such other insurance provides coverage for loss sustained prior to its effective date. 2. Paragraph (iv)(1) of the Joint Insured Condition is replaced by the following: (1) No later than 120 days from the date of that cancellation. However,this extended period to Discover loss terminates immediately upon the effective date of any other insurance obtained by that insured,whether from Us or another insurer, replacing in whole or in part the coverage afforded under this Policy,whether or not such other insurance provides coverage for loss sustained prior to its effective date. 3. The definition of You or Your is amended to include any joint venture in which You have a controlling ownership interest. However,the most We will pay is the lower of the Limit of Insurance applicable to the loss or Your equity interest. 4. The Acts of Employees Learned of By You Prior to the Policy Period Exclusion is replaced with the following: Acts of Employees Learned of by You Prior to the Policy Period Loss caused by an Employee if the Employee had also committed Theft, Forgery or any other dishonest act prior to the effective date of this Policy and You or any Executive Employee not in collusion with the Employee, learned of that Theft, Forgery or dishonest act prior to the Policy Period shown in the Declarations. However,this provision shall not apply if the Theft, Forgery or other dishonest act occurred prior to the Employee becoming Your Employee and the amount of such act did not exceed$25,000. 5. In paragraph I. Insuring Agreements,the Condition applicable to Coverage A and all subparts is replaced with the following: The following Condition applies to Coverage A and all subparts: (i) However, all subparts of Coverage A terminate as to any Employee as soon You or an Executive Employee not in collusion with the Employee learns of Theft, Forgery or any other dishonest act committed by the Employee: (1) after becoming employed by You;or (2) if such Theft, Forgery or dishonest act exceeded $25,000, before becoming employed by You. All other terms and conditions remain unchanged. CRI E9777 CW (06/10) Includes copyrighted material of Insurance Services Offices,Inc.,with its permission. CAPP 2013 Property Policy 50 of 83 egs H ISCOX Endorsement 2 NAMED INSURED: Members of the Colorado Counties Casualty and Property Pool (see endorsement CRI E9622) E9606.1 Crime Elite Endorsement Page 2 of 2 6. Paragraph (i)(1) of the definition of Employee is deleted in its entirety and replaced with the following: (1) while in Your service and for the first 90 days immediately after termination of service, unless such termination is due to Theft, Forgery or any other dishonest act committed by the Employee; 7. The definition of Employee is amended to include any natural person independent contractor whom You have the right to direct and control while performing acts within the usual duties of an Employee. All other terms and conditions remain unchanged. CRI E9606 CW (06/10) Includes copyrighted material of Insurance Services Offices, Inc.,with its permission. Endorsement effective: 01/01/2013 Policy No.: UC21191167.13 Endorsement No: 2 Processed Date:12/19/2012 LI147/7 iffr By : Carl Bach (Appointed Representative) CAPP 2013 Property Policy 51 of 83 n0 HISCOX Endorsement 3 NAMED INSURED: Members of the Colorado Counties Casualty and Property Pool (see endorsement CRI E9622) E9611.1 Government Conversion(with Faithful Performance) Page 1 of 2 This endorsement modifies insurance provided under the CRIME INSURANCE Policy Form whether written as a standalone policy or as a module attached to another policy. SCHEDULE Faithful Performance of Duty Limit of Insurance: $1,000,000 1. In paragraph I. Insuring Agreements,the following is added to Coverage A(1) Employee Theft: We will pay for loss of or damage to Money, Securities, and/or Other Property resulting directly from the failure of any Employee to faithfully perform his or her duties as prescribed by law,when such failure has as its direct and immediate result a loss of Your covered property. The most We will pay for loss arising out of any one Occurrence is the Limit of Insurance shown in the Schedule. That Limit is part of, not in addition to, the Limit of Insurance shown in the Declarations. 2. The following is added to the Transfer of Your Rights of Recovery Against Others to Us Condition: In the event of a loss covered under paragraph 1. above, We shall not pursue our right of recovery against the Employee who failed to faithfully perform his or her duties as long as such failure does not involve a theft or other dishonest act. 3. The following additional exclusions are added: FP-O. Loss resulting from the failure of any entity acting as a depository for Your property or property for which You are responsible. FP-P. Damages for which You are legally liable as a result of: (i) The deprivation or violation of the civil rights of any person by an Employee;or (ii) The tortious conduct of an Employee, except the conversion of property of other parties held by You in any capacity. 4. The following additional Condition is added to Coverage A: The following Condition applies to Coverage A and all subparts: We will indemnify any of your officials who are required by law to give bonds for the faithful performance of their duties against loss through the failure of any Employee under the supervision of that official to faithfully perform his or her duties as prescribed by law,when such failure has as its direct and immediate result a loss of your covered property. 5. The coverage provided by this endorsement does not apply to Coverage A(2) ERISA. 6. In paragraph I. Insuring Agreements,the Condition applicable to Coverage A and all subparts is amended such that a"Theft, Forgery, or any other dishonest act"shall include an act which would be covered under Coverage A, as amended by this endorsement. All other terms and conditions remain unchanged. CRI E9777 CW (06/10) Includes copyrighted material of Insurance Services Offices, Inc.,with its permission. CAPP 2013 Property Policy 52 of 83 HISCOX Endorsement 3 NAMED INSURED: Members of the Colorado Counties Casualty and Property Pool (see endorsement CRI E9622) E9611.1 Government Conversion (with Faithful Performance) Page 2 of 2 7. Throughout the policy any references to partners, Managers or Members, are deleted in their entirety. 8. The Consolidation - Merger or Acquisition Condition and any references to merged,consolidated or acquired entities throughout the policy are deleted in their entirety. 9. The definition of Subsidiary is amended to read as follows: Subsidiary means any agency, authority or district(including Special Districts)which is governed directly by the governing body of any insured listed on the Declarations or by endorsement. All other terms and conditions remain unchanged. CRI E9611 CW (06/10) Includes copyrighted material of Insurance Services Offices,Inc.,with its permission. Endorsement effective:01/01/2013 Policy No.: UC21191167.13 Endorsement No: 3 Processed Date:12/19/2012 (PLejfr �ByCarl Bach (Appointed Representative) CAPP 2013 Property Policy 53 of 83 1 H I SCOX Endorsement 4 NAMED INSURED: Members of the Colorado Counties Casualty and Property Pool (see endorsement CRI E9622) E9622.1 Named Insured Added Page 1 of 2 SCHEDULE Retroactive Dater N/A Additional Named Insured Limit of Insurance Deductible Amount (per occurrence) (per occurrence) Alamosa County N/A N/A Archuleta County N/A N/A Baca County N/A N/A Bent County N/A N/A Chaffee County N/A N/A Cheyenne County N/A N/A Clear Creek County N/A N/A Conejos County N/A N/A Costilla County N/A N/A Crowley County N/A N/A Custer County N/A N/A Delta County N/A N/A Dolores County N/A N/A Eagle County N/A N/A Elbert County N/A N/A Fremont County N/A N/A Garfield County N/A N/A Gilpin County N/A N/A Grand County N/A - N/A Gunnison County N/A N/A Hinsdale County N/A N/A Huerfano County N/A N/A Jackson County N/A N/A Kiowa County N/A N/A Kit Carson County N/A N/A La Plata County N/A N/A Lake County N/A N/A Las Animas County N/A N/A Lincoln County N/A N/A Logan County N/A N/A Mineral County N/A N/A Moffat County N/A N/A Montrose County N/A N/A Morgan County N/A N/A Otero County N/A N/A Ouray County N/A N/A Park County N/A N/A Phillips County N/A N/A Prowers County N/A N/A Pueblo County N/A N/A All other terms and conditions remain unchanged. CRI E9622 CW (06/10) Includes copyrighted material of Insurance Services Offices,Inc.,with its permission. . CAPP 2013 Property Policy 54 of 83 HISCOX Endorsement 4 NAMED INSURED: Members of the Colorado Counties Casualty and Property Pool (see endorsement CRI E9622) E9622.1 Named Insured Added Page 2 of 2 Rio Blanco County N/A N/A Rio Grande County N/A N/A Routt County N/A N/A Saguache County N/A - N/A San Juan County N/A N/A San Miguel County N/A N/A Sedgwick County N/A N/A Summit County N/A N/A Teller County N/A N/A Washington County N/A N/A Weld County N/A N/A Yuma County N/A N/A 1. The Additional Named Insured(s) shown in the Schedule are added as Named Insured. If a Limit of Insurance or Deductible Amount is applicable to the Additional Named Insured,the Limit of Insurance and Deductible Amount for all Insuring Agreements for which a Limit of Insurance is shown in the Declarations is changed to the Limit of Insurance and Deductible Amount shown in the Schedule. 2. If a Retroactive Date is shown in the Schedule,this addition applies only to loss or damage that You sustain resulting directly from an Occurrence taking place in its entirety after the Retroactive Date shown in the Schedule which is Discovered by You or an Executive Employee on or after the Endorsement Effective date and before the end of the Policy Period shown in the Declarations or the period of time provided in the Extended Period To Discover Loss Condition. The definition of Occurrence is amended with respect to the Additional Named Insured(s)to apply only to acts committed or events occurring after the Retroactive Date shown in the Schedule. All other terms and conditions remain unchanged. CRI E9622 CW (06/10) Includes copyrighted material of Insurance Services Offices,Inc.,with its permission. Endorsement effective: 01/01/2013 Policy No.: UC21191167.13 Endorsement No: 4 Processed Date:12/19/2012 4 By :Carl Bach (Appointed Representative) CAPP 2013 Property Policy 55 of 83 eSeD HISCOX Endorsements NAMED INSURED: Members of the Colorado Counties Casualty and Property Pool (see endorsement CRI E9622) E9625.1 Persons or Classes of Persons Included(with Sublimit) Page 1 of 1 SCHEDULE Persons Or Classes Of Persons Sublimit of Insurance for Coverages A(1)and A(3) Elected or Appointed Officials N/A 1. The definition of Employee is amended to include any natural person or group of persons described in the Schedule. 2. If a Sublimit of Insurance is indicated in the Schedule,the most We will pay under this insurance for loss caused by any natural person or group of persons described in the Schedule is the Sublimit of Insurance indicated. That Sublimit of Insurance will be part of, not in addition to,the Limit of Insurance shown in the Declarations as applicable to Coverage A(1) Employee Theft and A(3) Clients' Property. All other terms and conditions remain unchanged. CRI E9625 CW (06/10) Includes copyrighted material of Insurance Services Offices,Inc.,with its permission. Endorsement effective:01/01/2013 Policy No.: UC21191167.13 Endorsement No: 5 Processed Date:12/19/2012 (3411k By : Carl Bach (Appointed Representative) CAPP 2013 Property Policy 56 of 83 HISCOX Endorsement 6 NAMED INSURED: Members of the Colorado Counties Casualty and Property Pool (see endorsement CRI E9622) E9704.1 Colorado Amendatory Endorsement Page 1 of 2 This endorsement modifies insurance provided under the CRIME INSURANCE Policy Form whether written as a standalone policy or as a module attached to another policy. In consideration of the premium charged, it is understood and agreed that the policy is modified as follows: 1. In the CONDITIONS Clause, paragraph (ii) of B. Cancellation is replaced by the following: (ii) If this policy has been in effect for less than 60 days, We may cancel this policy by mailing or delivering to the first Named Insured written notice of cancellation at least: a. 10 days before the effective date of cancellation if We cancel for nonpayment of premium;or b. 30 days before the effective date of cancellation if We cancel for any other reason. 2. In the CONDITIONS Clause, the following is added to B. Cancellation: (vii) Cancellation Of Policies In Effect For 60 Days Or More a. If this policy has been in effect for 60 days or more, or is a renewal of a policy We issued,We may cancel this policy by mailing through first-class mail to the first Named Insured written notice of cancellation: (1) Including the actual reason, at least 10 days before the effective date of cancellation, if We cancel for nonpayment of premium;or (2) At least 45 days before the effective date of cancellation if we cancel for any other reason. We may only cancel this policy based on one or more of the following reasons: (1) Nonpayment of premium; (2) A false statement knowingly made by the Insured on the application for insurance; or (3) A substantial change in the exposure or risk other than that indicated in the application and underwritten as of the effective date of the policy unless the first Named Insured has notified us of the change and We accept such change. (viii) Nonrenewal If We decide not to renew this policy,We will mail through first-class mail to the first Named Insured shown in the Declarations written notice of the nonrenewal at least 45 days before the expiration date, or its anniversary date if it is a policy written for a term of more than one year or with no fixed expiration date. If notice is mailed, proof of mailing will be sufficient proof of notice. (ix) Increase In Premium Or Decrease In Coverage We will not increase the premium unilaterally or decrease the coverage benefits on renewal of this policy unless We mail written notice of our intention, including the actual reason,to the first Named Insured's last mailing address known to Us, at least 45 days before the effective date. Any decrease in coverage during the policy term must be based on one or more of the following reasons: a. Nonpayment of premium; b. A false statement knowingly made by the insured on the application for insurance; or CAPP 2013 Property Policy 57 of 83 HISCOX Endorsement 6 NAMED INSURED: Members of the Colorado Counties Casualty and Property Pool (see endorsement CRI E9622) E9704.1 Colorado Amendatory Endorsement Page 2 of 2 c. A substantial change in the exposure or risk other than that indicated in the application and underwritten as of the effective date of the policy unless the first Named Insured has notified Us of the change and We accept such change. If notice is mailed, proof of mailing will be sufficient proof of notice. 3. In the CONDITIONS Clause,the following condition is added: LP. Loss Payment (i) We will give You notice of our intentions within 60 days after We receive the sworn proof of loss;and (ii) We will pay for covered loss or damage within 60 days after we receive the sworn proof of loss, if You have complied with all the terms of this policy and: a. We will have reached agreement with You on the amount of loss;or b. An appraisal award has been made. All other terms and conditions remain unchanged. CRI E9704 CO(06/10) Includes copyrighted material of Insurance Services Offices,Inc.,with its permission. Endorsement effective:01/01/2013 Policy No.: UC21191167.13 Endorsement No: 6 Processed Date:12/19/2012 jfr By :Carl Bach (Appointed Representative) CAPP 2013 Property Policy 58 of 83 tSeD HISCOX Crime Insurance Policy Form Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights,duties and what is or is not covered. Those words (other than the words in the captions)which are printed in Boldface are defined in the Policy. In return for the payment of premium, subject to all the terms and conditions of this policy, and in reliance upon the statements made by You in the Application, which forms a part of this Policy,We agree with You to provide the insurance as stated in this policy: I. Insuring Agreements Coverage is provided under the following Insuring Agreements for which a Limit of Insurance is shown in the Declarations and applies to loss that You sustain resulting directly from an Occurrence taking place at any time which is Discovered by You or an Executive Employee during the Policy Period shown in the Declarations or during the period of time provided in the Extended Period To Discover Loss Condition: Coverage A: Fidelity (1) Employee Theft We will pay for loss of or damage to Money, Securities and Other Property resulting directly from Theft and/or Forgery committed by an Employee, whether identified or not, acting alone or in collusion with other persons. (2) ERISA • We will pay, directly to an Employee Benefit Plan, for loss of or damage to Money, Securities and Other Property resulting directly from fraudulent or dishonest acts committed by a Fiduciary of any Employee Benefit Plan,whether identified or not, acting alone or in collusion with other persons. The Limit of Insurance shown in the Declarations for Coverage A(2) ERISA shall apply to each and every Employee Benefit Plan sustaining such loss or damage. In the event of an Occurrence involving both Coverage A(1) Employee Theft and Coverage 9 A(2) ERISA,the Limit of Insurance shown in the Declarations for Coverage A(2) shall be in addition to the Limit of Insurance shown for Coverage A(1) Employee Theft. If the Limit of Insurance for Coverage A(2) ERISA no longer complies with the minimum amount of coverage required for such Employee Benefit Plan(s) under ERISA(unless the Limit of Insurance no longer complies due to investment in non- qualified assets), but which would have complied at the time the Policy was issued, We agree to increase the Coverage A(2) ERISA Limit of Insurance with regard to such Employee Benefit Plan(s)so as to equal the minimum amount of coverage required under ERISA. The Deductible Amount does not apply to Coverage A(2) ERISA. (3) Clients' Property We will pay for loss of or damage to Money, Securities and Other Property sustained Includes copyrighted material of Insurance Services Offices;Inc.,with its permission. Page 1 of 24 CHI Po01 CW(06/10) CAPP 2013 Property Policy 59 of 83 43 HISCOX Crime Insurance Policy Form by Your Client resulting directly from Theft and/or Forgery committed by an identified Employee, acting alone or in collusion with other persons, including an Employee in collusion with an Employee of Your Client. (4) Vendor Theft We will pay for loss of or damage to Money, Securities and Other Property resulting directly from Theft committed by an identified Employee of Your Vendor (other than one with an ownership interest of greater than 25% in the Vendor) acting alone or in collusion with other persons. This coverage shall only apply to the amount of loss You cannot recover under the contract with the Vendor and from any insurance or indemnity carried by, or for the benefit of the Vendor or customers of the Vendor. The Limit of Insurance shown for Coverage A(4) Vendor Theft shall be part of, not in addition to,the Limit of Insurance shown for Coverage A(1) Employee Theft. The following Condition applies to Coverage A and all subparts: (i) All subparts of Coverage A terminate as to any Employee as soon as an Executive Employee not in collusion with the Employee learns of Theft, Forgery or any other dishonest act committed by the Employee: (1) after becoming employed by You; or (2) if such Theft, Forgery or dishonest act exceeded$10,000, before becoming employed by You. Coverage B: Forgery or Alteration (1) Checks We will pay for loss resulting directly from Forgery or alteration of checks, drafts, promissory notes, convenience checks, HELOC checks, or similar written promises, orders or directions to pay a sum certain in Money that are: (i) Made or drawn by or drawn upon You; or (ii) Made or drawn by one acting as Your agent; or that are purported to have been so made or drawn. (2) Credit, Debit or Charge Cards We will pay for loss resulting directly from Forgery or alteration of written instruments required in conjunction with any credit, debit, convenience, stored-value or charge card issued to You or any Employee for business purposes as long as You or the Employee have complied fully with the provisions, conditions or other terms under which the credit,debit, convenience,stored-value or charge card was issued. (3) Personal Accounts We will pay for loss resulting directly from Forgery or alteration of checks, drafts, promissory notes, convenience checks, HELOC checks, or similar written promises, Includes copyrighted material of Insurance Services Offices, Inc.,with its permission. Page 2 of 24 CFI P001 CW(06/10) CAPP 2013 Property Policy 60 of 83 Asb HISCOX Crime Insurance Policy Form orders or directions to pay a sum certain in Money that are made or drawn by or drawn upon a personal account of an Executive Employee or that are purported to have been so made or drawn. The following Conditions apply to Coverage B and all subparts: (i) A substitute check as defined in the Check Clearing for the 21st Century Act shall be treated the same as the original it replaced; (ii) Signatures that are produced or reproduced electronically, mechanically or by other means shall be treated the same as handwritten signatures; (iii) You must include with Your proof of loss any instrument involved in that loss, or, if that is not possible, an affidavit setting forth the amount and cause of loss; (iv) If You are sued for refusing to pay any instrument covered above on the basis that it has been forged or altered, and You have Our written consent to defend against the suit, We will pay for any reasonable legal expenses that You incur and pay in that defence. The amount that We will pay is in addition to the Limit of Insurance applicable to this Insuring Agreement. The Deductible Amount does not apply to legal expenses paid under this paragraph. Coverage C: Inside and Outside the Premises (1) Inside the Premises (i) We will pay for loss of Money and Securities inside the Premises or Banking Premises: (1) resulting directly from Theft committed by a person present inside such Premises or Banking Premises;or (2) resulting directly from disappearance or destruction. (ii) We will pay for loss of or damage to Other Property: (1) inside the Premises resulting directly from an actual or attempted Robbery of a Custodian; or (2) inside the Premises in a safe or vault resulting directly from an actual or attempted Safe Burglary. (iii) We will pay for loss from damage to the Premises or its exterior resulting directly from an act covered by paragraph (i)or(ii)if You are the owner of the Premises or are liable for damage to it. (iv) We will pay for loss of or damage to a locked safe,vault, cash register, cash box or cash drawer located inside the Premises resulting directly from an actual or attempted Theft of or unlawful entry into those containers. (2) Outside the Premises (i) We will pay for loss of Money and Securities outside the Premises in the Includes copyrighted material of Insurance Services Offices,Inc.,with its permission. Page 3 of 24 CRI P001 CW(06/10) CAPP 2013 Property Policy 61 of 83 Jet HISCOX Crime Insurance Policy Form care and custody of a Messenger or an armored motor vehicle company resulting directly from Theft, disappearance or destruction (ii) We will pay for loss of or damage to Other Property outside the Premises in the care and custody of a Messenger or an armored motor vehicle company resulting directly from an actual or attempted Robbery. The following Condition applies to Coverage C and all subparts: We will only pay: (i) for the amount of loss You cannot recover under Your contract with the armored motor vehicle company and from any insurance or indemnity carried by, or for the benefit of customers of,the armored motor vehicle company. (ii) up to $10,000 for any one Occurrence of loss of or damage to: (1) precious metals, precious or semi-precious stones, pearls,furs or completed or partially completed articles made of or containing such materials that constitute the principal value of such articles. (2) Manuscripts, drawings, or records of any kind, or the cost of reconstructing them or reproducing any information contained in them. Coverage D: Computer and Funds Transfer Fraud (1) Computer Fraud We will pay for loss of or damage to Money, Securities and/or Other Property resulting directly from the use of any computer to fraudulently cause a transfer of that property from inside the Premises or Banking Premises: (i) to a person (other than a Messenger) outside those Premises or Banking Premises;or (ii) to a place outside those Premises or Banking Premises. We will only pay up to$10,000 for any one Occurrence of loss of or damage to manuscripts, drawings, or records of any kind, or the cost of reconstructing them or reproducing any information contained in them. (2) Funds Transfer Fraud We will pay for loss of Money and Securities resulting directly from a Fraudulent Instruction directing a financial institution to transfer, pay or deliver Money and Securities from Your Transfer Account. Coverage E: Money Orders and Counterfeit Money We will pay for loss resulting directly from Your having accepted in good faith, in exchange for merchandise, Money or services: (i) money orders issued by any post office, express company or bank that are not paid upon presentation;or (ii) Counterfeit Money that is acquired during the regular course of business. includes copyrighted material of Insurance Services Offices, Inc.,with its permission. Page 4 of 24 CRI P001 CW(06/10) CAPP 2013 Property Policy 62 of 83 HISCOX Crime Insurance Policy Form Coverage F: Telephone Toll Fraud We will pay for loss from long distance telephone charges incurred by You resulting directly from fraudulent use or fraudulent manipulation of an Account Code or System Password required to gain access into Your Voice Computer System, provided such loss did not result from the failure to: (i) install and maintain in operating condition a call disconnect feature to terminate a caller's access after three unsuccessful attempts to enter an Account Code; (ii) incorporate a System Password; or (iii) change a System Password every 60 days. We will only pay for loss resulting from toll call charges made on telephone lines directly controlled by one Voice Computer System occurring for a period of not more than 30 days inclusive of the date on which the first such toll call charges were made. Coverage G: Identity Fraud Expense We will pay for Identity Fraud Expenses incurred by You or any Executive Employee resulting directly from Identity Fraud. Coverage H: Virus and Licensing Violations (1) Virus Restoration We will pay for costs that You incur to restore or replace damaged or destroyed Electronic Data or Computer Programs stored within Your Computer System resulting directly from: (i) a virus directed solely against You designed to damage or destroy Electronic Data or Computer Programs and introduced maliciously by a . natural person;or (ii) vandalism by a person who has gained unauthorized access to Your Computer System; including reasonable costs that You incur to restore Your Computer System to the level of operational capability that existed before the virus or vandalism occurred. (2) Licensing Violation Fines and Penalties We will pay for fines and penalties that You incur resulting directly from the unauthorized reproduction of computer software by an Employee, in violation of a licensing agreement with a third party vendor, provided the unauthorized reproduction is done: (i) without Your or an Executive Employee's knowledge; (ii) without the knowledge of any other person having responsibility for compliance with the terms of the software licensing agreement; Includes copyrighted material of Insurance Services Offices, Inc.,with its permission. Page 5 of 24 CRI P001 Cw(06/10) CAPP 2013 Property Policy 63 of 83 Jcg HISCOX Crime Insurance Policy Form and You are legally liable for the loss. Coverage I: Expense We will reimburse You for reasonable costs,fees or other expenses that You incur and pay to an independent accounting, auditing or other service (which is not a Client) used to determine the existence or amount of loss covered under this insurance with Our prior written consent. Any expense payable to You is only applicable to a covered loss which exceeds the Deductible Amount subject to such covered loss. Any expense payable to You is part of, not in addition to,the Limit of Insurance subject to such covered loss. II. Definitions A. Account Code means a confidential and protected string of characters that identifies or authenticates a person and permits that person to gain access to Your Voice Computer System for the purpose of making long distance toll calls or utilizing voice mail box messaging capabilities or similar functional features of the system. B. Banking Premises means the interior of that portion of any building occupied by a financial institution or similar safe depository including a night depository chute, ATM machine owned by such financial institution (wherever located) or safe of such institution. C. Client means any entity to which You provide goods or services under a written agreement. D. Computer Programs means a set of related electronic instructions which direct the operations and functions of a computer or devices connected to it which enable the computer or devices to receive, process, store, retrieve or send Electronic Data. E. Computer System means: (i) computers and related peripheral components; (ii) systems and applications software; (iii) terminal devices;and (iv) related communications networks; by which Electronic Data is received, processed, stored, retrieved or sent. F. Counterfeit Money means an imitation of Money that is intended to deceive and to be taken as genuine. G. Custodian means You, or any of Your partners or Members, or any Employee while having care and custody of property inside the Premises, excluding any person while acting as a Watchperson or janitor unless such person is also an Employee. Includes copyrighted material of Insurance Services Offices,Inc.,with its permission. Page 6 of 24 CRI P001 CW(06/10) CAPP 2013 Property Policy 64 of 83 eto HISCOX Crime Insurance Policy Form H. Discover or Discovered means the time when You or an Executive Employee first becomes aware of facts which would cause a reasonable person to assume that a loss of a type covered by this Policy has been or will be incurred, regardless of when the act or acts causing or contributing to such loss occurred, even though the exact amount or details of loss may not then be known. Discover or Discovered also means the time when You or an Executive Employee first receive notice of an actual or potential claim in which it is alleged that You are liable to a third party under circumstances which, if true, would constitute a loss under this Policy. I. Electronic Data means information, facts or computer programs stored as or on, created or used on, or transmitted to or from computer software(including systems and applications software), on hard or floppy disks, CD-ROMs, DVDs, Blu-ray Discs, flash drives,tapes, drives, cells, data processing devices or any other repositories of computer software which are used with electronically controlled equipment. J. Employee means any: (i) natural person: (1) while in Your service and for the first 60 days immediately after termination of service, unless such termination is due to Theft, Forgery or any other dishonest act committed by the Employee; (2) who You compensate directly by salary,wages or commissions;and (3) who You have the right to direct and control while performing services for You; (ii) temporary Employee; (iii) natural person who is leased to You; (iv) natural person who is a former Employee, partner, Member, Manager, director or trustee retained as a consultant while performing services for You; (v) natural person who is a guest student or intern; (vi) of Your Managers,directors or trustees while performing acts within the usual duties of an Employee; (vii) non-compensated officer; (viii)volunteer; (ix) committee member; (x) Employee on military, disability, family medical or similar leave;and (xi) Fiduciary, but only as respects Coverage A(2) ERISA; Employee does not mean any agent(regardless of whether or not there is a written agreement as specified in the definition of Vendor), broker,factor, commission merchant,consignee, independent contractor or representative or Includes copyrighted material of Insurance Services Offices,Inc.,with its permission. Page 7 of 24 CRI Pool CW(06110) CAPP 2013 Property Policy 65 of 83 4510 HISCOX Crime Insurance Policy Form person of the same general character not specified above. K. Employee Benefit Plan means any welfare or pension benefit plan that is sponsored by You whether or not such plan is subject to the Employee Retirement Income Security Act of 1974 (ERISA) and any amendments thereto. L. Executive Employee means Your proprietor, natural person partner, member of the board of directors, member of the board of trustees, Member, Manager, officer and any Employee in a risk management,general counsel, insurance or human resources department or function. (i) Solely with respect to Coverage A(2) ERISA, Executive Employee shall also include a Fiduciary. (ii) Solely with respect to Coverage G Identity Fraud Expense, Executive Employee shall also include any spouse,child under the age of 18 or relative living in the household of any Executive Employee. M. Fiduciary means any natural person who is a trustee, officer, Employee, administrator or manager, except an administrator or manager who is an independent contractor of any Employee Benefit Plan;and a director or trustee of Yours while that person is engaged in handling Money, Securities or Other Property of any Employee Benefit Plan. N. Forgery means the signing of the name of another person or organization with the intent to deceive; it does not mean a signature which consists in whole or in part of one's own name signed with or without authority, in any capacity,for any purpose. O. Fraudulent Instruction means (i) an electronic,telegraphic, cable,teletype,telefacsimile or telephone instruction which purports to have been transmitted by You, but which was in fact fraudulently transmitted by someone else without Your knowledge or consent; (ii) a written instruction (other than those described in Coverage B) issued by You,which was forged or altered by someone other than You without Your knowledge or consent,or which purports to have been issued by You, but was in fact fraudulently issued without Your knowledge or consent;or (iii) an electronic,telegraphic,cable,teletype,telefacsimile,telephone or written instruction initially received by You which purports to have been transmitted by an Employee but which was in fact fraudulently transmitted by someone else without Your or the Employee's knowledge or consent. P. Identity Fraud means the act of knowingly transferring or using,without lawful authority, a means of identification of Your business or any covered individual with the intent to commit, or to aid or abet another to commit, any unlawful activity that constitutes a violation of federal law or a felony under any applicable state or local law. Includes copyrighted material of Insurance Services Offices, Inc.,with its permission. Page 8 of 24 CRI P001 CW(06/10) CAPP 2013 Property Policy 66 of 83 £ HISCOX Crime Insurance Policy Form Q. Identity Fraud Expenses means: (i) advertising and public relations expenses incurred by You to restore Your business reputation as a result of an Identity Fraud; (ii) costs incurred by You or any covered individual for notarizing affidavits or similar documents attesting to fraud required by financial institutions or similar credit grantors or credit agencies; (iii) costs incurred by You or any covered individual for certified mail to law enforcement agencies, credit agencies, financial institutions or similar credit grantors; (iv) costs incurred by You or any covered individual for obtaining credit reports; (v) lost income incurred by You or any covered individual resulting from time taken off work to complete fraud affidavits, meet with or talk to law enforcement agencies, credit agencies and/or legal counsel, up to a maximum payment of$250 per day. Total payment for lost income is not to exceed$10,000 or the Limit of Insurance shown in the Declarations, whichever is less; (vi) loan application fees, incurred by You or any covered individual for reapplying for a loan when the original application is rejected solely because the lender received incorrect credit information; (vii) reasonable attorney fees to: (1) defend lawsuits brought against You by merchants, vendors, suppliers, financial institutions or their collection agencies; (2) remove any criminal or civil judgements wrongly entered against You; and (3) challenge the accuracy or completeness of any information in a consumer credit report for You; (viii)charges incurred by You or any covered individual for long distance telephone calls to merchants, vendors, suppliers, customers, law enforcement agencies,financial institutions or similar credit grantors, or credit agencies to report or discuss an actual Identity Fraud; and any other reasonable expenses p es incurred by You or any covered individual with Our written consent. R. Manager means a person serving in a directorial capacity for a limited liability company. S. Member means an owner of a limited liability company represented by its membership interest, who also may serve as a Manager. T. Messenger means You, or a relative of Yours, or any of Your partners or Members, or any Employee while having care and custody of property outside the Premises. Includes copyrighted material of Insurance Services Offices,Inc.,with its permission. Page 9 of 24 CRI Po01 CW(06110) CAPP 2013 Property Policy 67 of 83 fry H I SCOX Crime Insurance Policy Form U. Money means: (i) currency,coins, and bank notes in current use anywhere in the world and having a face value; (ii) bullion; and (iii) traveller's checks, register checks and money orders held for sale to the public. V. Occurrence means: (i) Under Coverage A Fidelity and H(2) Fines and Penalties: (1) an individual act; (2) the combined total of all separate acts whether or not related;or (3) a series of acts whether or not related; committed by an Employee, Fiduciary or Vendor Employee acting alone or in collusion with other persons, during the Policy Period shown in the Declarations, before such Policy Period or both. (ii) Under Coverage B Forgery or Alteration: (1) an individual act; (2) the combined total of all separate acts whether or not related; or • (3) a series of acts whether or not related; committed by a person acting alone or in collusion with other persons, involving one or more instruments, during the Policy Period shown in the Declarations, before such Policy Period or both. (iii) Under Coverage H(1)Virus Restoration paragraph (i): As respects a virus, all covered costs incurred by You between the time the damage or destruction is Discovered and the time Your Computer System is restored to the level of operational capability that existed before the virus occurred. Recurrence of the same virus after Your Computer System has been restored shall constitute a separate occurrence. (iv) Under all other coverages: (1) an individual act or event; (2) the combined total of all separate acts or events whether or not related; or (3) a series of acts or events whether or not related; committed by a person acting alone or in collusion with other persons, or not committed by any person, during the Policy Period shown in the Declarations, before such Policy Period or both. W. Other Property means any tangible property other than Money and Securities Includes copyrighted material of Insurance Services Offices, Inc.,with its permission. Page 10 of 24 CRI P001 CW(06/10) CAPP 2013 Property Policy 68 of 83 H ISCOX Crime Insurance Policy Form that has intrinsic value. Other Property does not include Computer Programs, Electronic Data or any property specifically excluded under this Policy. X. Premises means the interior of that portion of any building You occupy in conducting Your business. Y. Robbery means the unlawful taking of property from the care and custody of a person by one who has: (i) caused or threatened to cause that person bodily harm;or (ii) committed an obviously unlawful act witnessed by that person. Z. Safe Burglary means the unlawful taking of: (i) Property from within a locked safe or vault by a person unlawfully entering the safe or vault as evidenced by marks of forcible entry upon its exterior;or (ii) A safe or vault from inside the Premises. AA.Securities means negotiable or nonnegotiable instruments or contracts • representing either Money or property and includes: (i) tokens, tickets, revenue and other stamps (whether represented by actual stamps or unused value in a meter) in current use; (ii) casino chips issued by You;and (iii) evidences of debt issued in connection with credit or charge cards, which cards are not issued by You; - but does not include Money. BB.Subsidiary means any corporation or limited liability company in which, on or prior to the effective date of this policy, You own or control directly, or through • one or more Subsidiaries, more than fifty percent(50%) of the outstanding securities or voting rights representing the right to elect or appoint such entity's board of directors, board of trustees, board of managers or a functional equivalent. CC.System Administration means the performance of any security function including, but not limited to: (i) defining authorized persons to access the system; (ii) adding, deleting or changing Account Codes or passwords; (iii) installing or deleting any system option which directs telephone call routing or adds, drops or moves telephone lines;or (iv) any other activity allowed by a hardware or software-based system option that has been incorporated by a manufacturer or a vendor into a Voice Computer System provided the system is not intended for the sole use of the manufacturer or vendor. DD.System Maintenance means performing hardware and software installation, Includes copyrighted material of Insurance Services Offices,Inc.,with its permission. Page 11 of 24 CRI P001 CW(06110) CAPP 2013 Property Policy 69 of 83 eta HISCOX Crime Insurance Policy Form diagnostic and correction and similar activities that are performed in the usual custom and practice by a manufacturer or vendor to establish or maintain the basic operational functionality of a Voice Computer System. EE.System Password means a confidential and protected string of characters that identifies or authenticates a person and permits that person to gain access to Your Voice Computer System to perform System Administration or System Maintenance or a component thereof. FF. Theft means the unlawful taking of property to the deprivation of the Insured. Solely with respect to Coverage A(3) Clients' Property, Theft shall mean the unlawful taking of property to the deprivation of a Client. GG. Transfer Account means an account maintained by You at a financial institution from which You can initiate the transfer, payment or delivery of Money or Securities: (i) by means of electronic,telegraphic,cable,teletype, telefacsimile or telephone instructions communicated directly through an electronic funds transfer system;or (ii) by means or written instructions (other than those described in Coverage B) establishing the conditions under which such transfers are to be initiated by such financial institution through an electronic funds transfer system. HH.Vendor means an entity that provides a service to You under a written agreement which includes a requirement to provide Crime or Fidelity insurance covering Your property in the care,custody and control of the Vendor and/or its Employees for a limit equal to or greater than that shown in the Declarations of this Policy under Coverage A(1) Employee Theft. If such agreement is not valid or collectable then this Policy will respond only to that portion of loss which would have been excess of such requirement. However, Vendor does not include any financial institution, asset manager, broker, dealer or armored motor vehicle company. II. Voice Computer System means a computer system installed in one location which functions as a private branch exchange (PBX), voice mail processor, automated call attendant or provides a similar capability used for the direction or routing of telephone calls in a voice communications network. JJ. Watchperson means any person retained by You specifically to have care and custody of property inside the Premises and who has no other duties. However, Watchperson does not include an Employee. KK.We, Us or Our means the insurance company shown in the Declarations. LL. You or Your means: (i) the Named Insured shown in the Declarations; (H) any Subsidiary thereof; and Includes copyrighted material of Insurance Services Offices,Inc.,with its permission. Page 12 of 24 CRI P001 Cw(06/101 CAPP 2013 Property Policy 70 of 83 etre HISCOX • Crime Insurance Policy Form (iii) solely with respect to Coverage A(2) ERISA, any Employee Benefit Plan. Ill. Exclusions This Policy does not cover: A. Acts Committed by You,Your Partners or Your Members Loss resulting from Theft or any other dishonest act committed by: (i) You;or (ii) any of Your partners or Members; whether acting alone or in collusion with other persons. B. Acts of Employees Learned of by You Prior to the Policy Period Loss caused by an Employee if the Employee had also committed Theft, Forgery or any other dishonest act prior to the effective date of this Policy and You or an Executive Employee not in collusion with the Employee, learned of that Theft, Forgery or dishonest act prior to the Policy.Period shown in the Declarations. However,this provision shall not apply if the Theft, Forgery or other dishonest act occurred prior to the Employee becoming Your Employee and the amount of such act did not exceed $10,000. C. Acts of Employees, Managers, Directors,Trustees or Representatives Loss resulting from Theft, Forgery or any other dishonest act committed by any of Your Employees, Managers, directors,trustees or authorized representatives: (i) whether acting alone or in collusion with other persons; or (ii) while performing services for You or otherwise; except when covered under Coverage A Fidelity and H Virus and Licensing Violations. D. Confidential Information Loss resulting from: (i) the unauthorized disclosure of Your confidential information including, but not limited to, patents, trade secrets, processing methods or customer lists;or (ii) the unauthorized use or disclosure of confidential information of another person or entity which is held by You including, but not limited to,financial information, personal information,credit card information or similar non-public information. E. Governmental Action Loss resulting from seizure or destruction of property by order of governmental authority. Includes copyrighted material of Insurance Services Offices,Inc.,with its permission. Page 13 of 24 CRI Pool CW(06110) CAPP 2013 Property Policy 71 of 83 £ HISCOX Crime Insurance Policy Form F. Indirect Loss Loss that is an indirect result of an Occurrence covered by this Policy including, but not limited to, loss resulting from: (i) Your inability to realize income that You would have realized had there been no loss of or damage to Money, Securities or Other Property. (ii) payment of damages of any type for which You are legally liable. But, We will pay compensatory damages arising directly from a loss covered under this Policy. (iii) payment of costs,fees or other expenses You incur in establishing the existence or the amount of loss under this Policy except when covered under Coverage I Expense. G. Legal Fees,Costs and Expenses Fees, costs and expenses incurred by You which are related to any legal action, except when covered under Coverage B Forgery or Alteration or Coverage G Identity Fraud Expense. • H. Nuclear Hazard Loss or damage resulting from nuclear reaction or radiation,or radioactive contamination, however caused. I. War or Military Action Loss or damage resulting from: (i) war, including undeclared or civil war; (ii) warlike action by a military force, including action in hindering or defending against an actual or expected attack, by any government, sovereign or other authority using military personnel or other agents;or (iii) insurrection, rebellion, revolution, usurped power, or action taken by governmental authority in hindering or defending against any of these. Coverage A Fidelity does not cover: J. Inventory Shortages Loss, or that part of any loss,the proof of which as to its existence or amount is dependent upon: (i) an inventory computation; or (ii) a profit and loss computation. However, where You establish wholly apart from such computations that You have sustained a loss,then You may offer Your inventory records and actual physical count of inventory in support of the amount of loss claimed. K. Trading Includes copyrighted material of Insurance Services Offices, Inc.,with its permission. Page 14 of 24 CRI PWt CW(06110) CAPP 2013 Property Policy 72 of 83 HISCOX Crime Insurance Policy Form Loss resulting from trading,whether in Your name or in a genuine or fictitious account. Provided, however,that this exclusion shall not apply to direct losses caused by Theft and/or Forgery which result in improper financial gain to an Employee(direct losses as used herein shall mean only the amount of improper financial gain to such Employee, which shall not include salary, commissions, fees or other compensation, including, but not limited to promotions and raises associated with employment, paid by You to such Employee). Coverage C Inside and Outside the Premises does not cover: L. Accounting or Arithmetical Errors or Omissions Loss resulting from accounting or arithmetical errors or omissions. M. Exchanges or Purchases Loss resulting from the giving or surrendering of property in any exchange or purchase. N. Fire Loss or damage resulting from fire, however caused, except: (i) Loss of or damage to Money and Securities;and (ii) Loss from damage to a safe or vault. O. Kidnap, Ransom and Extortion Loss of Money, Securities or Other Property resulting directly or indirectly from kidnap, extortion or ransom payments surrendered to any person as a result of a threat, including, but not limited to a threat of bodily harm, property damage, denial of service, virus or other malicious instruction, product contamination and/or dissemination of confidential information. P. Money Operated Devices Loss of property contained in any money operated device unless the amount of Money deposited in it is recorded by a continuous recording instrument in the device. Q. Motor Vehicles or Equipment and Accessories Loss of or damage to motor vehicles,trailers or semi-trailers or equipment and accessories attached to them. R. Vandalism Loss from damage to the Premises or its exterior, or to any safe, vault, cash register, cash box, cash drawer or Other Property by vandalism or malicious mischief. S. Voluntary Parting of Title to or Possession of Property Loss resulting from Your, or anyone acting on Your express or implied authority, being induced by any dishonest act to voluntarily part with title to or possession Includes copyrighted material of Insurance Services Offices, Inc.,with its permission. Page 15 of 24 CHI P001 CW(06/10) CAPP 2013 Property Policy 73 of 83 £ HISCOX Crime Insurance Policy Form of any property. Coverage D Computer and Funds Transfer Fraud does not cover: T. Credit Card Transactions Loss resulting from the use or purported use of credit, debit,charge, access, convenience, identification, stored-value or other cards or the information contained on such cards. U. Inventory Shortages Loss, or that part of any loss, the proof of which as to its existence or amount is dependent upon: (i) an inventory computation; or (ii) a profit and loss computation. However;where You establish wholly apart from such computations that You have sustained a loss,then You may offer Your inventory records and actual physical count of inventory in support of the amount of loss claimed. Coverage H Virus and Licensing Violations does not cover: V. Errors or Omissions Loss resulting from errors or omissions in the design, programming or processing of Computer Programs or Electronic Data. W. Fraudulent Preparation or Input Loss resulting from the fraudulent preparation or input of Electronic Data or Computer Programs. IV. Limit of Insurance The most We will pay for all loss resulting directly from an Occurrence is the applicable Limit of Insurance shown in the Declarations. If any loss is covered under more than one Coverage, the most We will pay for such loss shall not exceed the largest Limit of Insurance available under any one of those Coverages. However, this provision does not apply to Coverage A(2) ERISA. V. Deductible We will not pay for loss resulting directly from an Occurrence unless the amount of loss exceeds the Deductible Amount shown in the Declarations. We will then pay the amount of loss in excess of the Deductible Amount, up to the Limit of Insurance. VI. Conditions Conditions applicable to all Coverages: A. Additional Premises or Employees If,while this Policy is in force, You establish any additional Premises or hire additional Employees, other than through consolidation or merger with, or Includes copyrighted material of Insurance Services Offices,Inc.,with its permission. Page 16 of 24 CFI P001 CW(06/101 CAPP 2013 Property Policy 74 of 83 etv HISCOX Crime Insurance Policy Form purchase or acquisition of assets or liabilities of, another entity, such Premises and Employees shall automatically be covered under this Policy. Notice to Us of an increase in the number of Premises or Employees need not be given and no additional premium need be paid for the remainder of the Policy Period shown in the Declarations. B. Cancellation (i) The first Named Insured shown in the Declarations may cancel this policy by mailing or delivering to Us advance written notice of cancellation. (ii) We may cancel this policy by mailing or delivering to the first Named Insured written notice of cancellation at least: (1) 15 days before the effective date of cancellation if We cancel for non- payment of premium;or (2) 60 days before the effective date of cancellation if We cancel for any other reason. (iii) We will mail or deliver Our notice to the first Named Insured's last mailing address known to Us. (iv) Notice of cancellation will state the effective date of cancellation. The Policy Period will end on that date. (v) If this policy is cancelled,We will send the first Named Insured any premium refund due. If We cancel,the refund will be pro rata. If the first Named Insured cancels,the refund may be less than pro rata. The cancellation will be effective even if We have not made or offered a refund. (vi) If notice is mailed, proof of mailing will be sufficient proof of notice. C. Changes This Policy contains all the agreements between You and Us concerning the insurance afforded. The First Named Insured shown in the Declarations is authorized to make changes in the terms of this Policy with Our consent. This Policy's terms can be amended or waived only by endorsement issued by Us and made a part of this Policy. D. Concealment, Misrepresentation or Fraud This Policy is void in any case of fraud by You as it relates to this Policy at any time. It is also void if You, at any time, intentionally conceal or misrepresent a material fact concerning: (i) this Policy; (ii) the property covered under this Policy; (iii) Your interest in the property covered under this Policy;or (iv) a claim under this Policy. Includes copyrighted material of Insurance Services Offices,Inc.,with its permission. Page 17 of 24 CPI P0o1 CW(06/10) CAPP 2013 Property Policy 75 of 83 HISCOX Crime Insurance Policy Form E. Consolidation—Merger or Acquisition (i) Except as provided in Paragraph (ii), if You consolidate or merge with, or purchase or acquire the assets or liabilities of, another entity: (1) You must give Us written notice as soon as possible and obtain Our written consent to extend the coverage provided by this Policy to such consolidated or merged entity or such purchased or acquired assets or liabilities. We may condition Our consent by requiring payment of an additional premium; but (2) For the first 90 days after the effective date of such consolidation, merger or purchase or acquisition of assets or liabilities, the coverage provided by this Policy shall apply to such consolidated or merged entity or such purchased or acquired assets or liabilities, provided that all Occurrences causing or contributing to a loss involving such consolidation, merger or purchase or acquisition of assets or liabilities, must take place after the effective date of such consolidation, merger or purchase or acquisition of assets or liabilities. (ii) For entities You acquire in which You own greater than fifty percent (50%) of the voting stock or voting rights,coverage under this Policy shall automatically become effective on the date of such acquisition with no additional premium required, provided: (1) All Occurrences causing or contributing to a loss involving the acquired entity must take place after the effective date of such acquisition;and (2) The assets of the acquired entity do not exceed thirty five percent(35%) of Your total assets as reflected in Your most recent calendar quarter consolidated financial statements immediately preceding the effective date of the Policy. F. Cooperation You must cooperate with Us in all matters pertaining to this Policy as stated in its terms and conditions. C. Duties in the Event of Loss After You or an Executive Employee Discovers a loss or a situation that may result in loss of or damage to Money, Securities or Other Property that, in Your best estimate, exceeds 50%of the Deductible Amount shown in the Declarations, You must: (i) notify Us as soon as practicable and in no event later than 90 days after Discovery. If You have reason to believe that any loss (except for loss covered under Coverage A Fidelity) involves a violation of law, You must also notify the local law enforcement authorities. (ii) submit to examination under oath at Our request and give Us a signed statement of Your answers. Includes copyrighted material of Insurance Services Offices, Inc.,with its permission. Page 18 of 24 CAt P001 CW(06/10) CAPP 2013 Property Policy 76 of 83 eta HISCOX Crime Insurance Policy Form (iii) produce for Our examination all pertinent records. (iv) give Us a detailed, sworn proof of loss within 120 days. (v) cooperate with Us in the investigation and settlement of any claim. You must send Us, within 60 days after Our request, receipts, bills or other records that support any claim for Identity Fraud Expenses covered under Coverage G Identity Fraud Expense. H. Examination of Your Books and Records We may examine and audit Your books and records as they relate to this Policy at any time during the Policy Period shown in the Declarations and up to 3 years afterward. I. Extended Period to Discover Loss We will pay for loss You sustained prior to the effective date of cancellation of this Policy,which is Discovered by You or an Executive Employee: (i) No later than 60 days from the date of that cancellation. However, this extended period to Discover loss terminates immediately upon the effective date of any other insurance obtained by You, whether or not such other insurance provides coverage for loss sustained prior to its effective date. (il) No later than 1 year from the date of that cancellation with regard to any Employee Benefit Plans under Coverage A(2) ERISA. J. Inspections and Surveys (i) We have the right to: (1) Make inspections and surveys at any time; (2) Give You reports on the conditions We find;and (3) Recommend changes. (ii) We are not obligated to make any inspections, surveys, reports or recommendations and any such actions We do undertake relate only to insurability and the premiums to be charged. We do not make safety inspections. We do not undertake to perform the duty of any person or organization to provide for the health or safety of workers or the public. And We do not warrant that conditions: (1) Are safe or healthful;or (2) Comply with laws, regulations,codes or standards. (iii) This condition applies not only to Us, but also to any rating, advisory, rate service or similar organization which makes insurance inspections, surveys, reports or recommendations. K. Joint Insured (i) The first Named Insured will act for itself and for every other Insured for all Includes copyrighted material of Insurance Services Offices, Inc.,with its permission. Page 19 of 24 CRI P001 CW(06/10) CAPP 2013 Property Policy 77 of 83 HISCOX Crime Insurance Policy Form purposes of this Policy. If the first Named Insured ceases to be covered,then the largest Subsidiary, by asset size, will become the first Named Insured. (ii) If any Insured, or partner, Member or officer of that Insured has knowledge of any information relevant to this Policy, that knowledge is considered knowledge of every Insured. (iii) An Employee of any Insured is considered an Employee of every Insured. (iv) If this Policy or any of its coverages is cancelled as to any Insured, loss sustained by that Insured is covered only if it is Discovered by You or an Executive Employee: (1) No later than 60 days from the date of that cancellation. However,this extended period to Discover loss terminates immediately upon the effective date of any other insurance obtained by that Insured, whether from Us or another insurer, replacing in whole or in part the coverage afforded under this Policy, whether or not such other insurance provides coverage for loss sustained prior to its effective date. (2) No later than 1 year from the date of that cancellation with regard to any Employee Benefit Plan(s)covered under Coverage A(2) ERISA. (v) We will not pay more for loss sustained by more than one Insured than the amount We would pay if all such loss had been sustained by one Insured except as provided in Coverage A(2) ERISA. (vi) Payment by Us to the first Named Insured for loss sustained by any Insured, other than an Employee Benefit Plan, shall fully release Us on account of such loss. Payment by Us to any Employee Benefit Plan(s)for loss sustained by any Employee Benefit Plan(s), shall fully release Us on account of such loss. L. Legal Action Against Us You may not bring any legal action against Us involving loss: (i) unless You have complied with all the terms of this Policy; (ii) until 90 days after You have filed proof of loss with Us; and (iii) unless brought within 2 years from the date You or an Executive Employee Discovered the loss. If any limitation in this Condition is prohibited by law, such limitation is amended so as to equal the minimum period of limitation provided by such law. M. Liberalization If We adopt any revision that would broaden the coverage under this Policy without additional premium within 45 days prior to or during the Policy Period shown in the Declarations, the broadened coverage will immediately apply to this Policy. Includes copyrighted material of Insurance Services Offices,Inc.,with its permission, Page 20 of 24 CRI P001 CW(06/10) CAPP 2013 Property Policy 78 of 83 r� HISCOX Crime Insurance Policy Form N. Other Insurance If other valid and collectible insurance is available to You for loss covered under this policy,We will only pay for the amount of loss that exceeds the Limit of Insurance and Deductible Amount of that other insurance, whether You can collect on it or not. Our payment for loss is subject to the terms and conditions of this Policy. However, if loss covered under this policy is subject to a Deductible,We will reduce the Deductible Amount shown in the Declarations by the sum total of all such other insurance plus any Deductible Amount applicable to that other insurance. O. Ownership of Property; Interests Covered With respect to Coverage A(1) Employee Theft and A(4) Vendor Theft,the property covered under this Policy is limited to property that You own or lease; With respect to Coverage A(3) Clients' Property, the property covered under this Policy is limited to property: (i) that Your Client owns or leases;or (ii) that Your Client holds for others whether or not Your Client is legally liable for the loss of such property. With respect to all other coverages, the property covered under this Policy is limited to property: (i) that You own or lease;or (U) that You hold for others whether or not You are legally liable for the loss of such property. However,this Policy is for Your benefit only. It provides no rights or benefits to any other person or organization. Any claim for loss that is covered under this Policy must be presented by You. P. Policy Bridge—Discovery Replacing Loss Sustained If this Policy replaces insurance that provided You with an extended period of time after cancellation in which to discover loss and which did not terminate at the time this Policy became effective: (i) We will not pay for any loss that occurred during the Policy Period of that prior insurance which is Discovered by You or an Executive Employee during the extended period to Discover loss, unless the amount of loss exceeds the Limit of Insurance and Deductible Amount of that prior insurance. In that case, We will pay for the excess loss subject to the terms and conditions of this Policy. (ii) However, any payment We make for the excess loss will not be greater than the difference between the Limit of Insurance and Deductible Amount of that prior insurance and the Limit of Insurance shown in the Declarations. We will Includes copyrighted material of Insurance Services Offices, Inc.,with its permission. Page 21 of 24 CRI Pool CW(06/10) CAPP 2013 Property Policy 79 of 83 . 4 H ISCOX Crime Insurance Policy Form not apply the Deductible Amount shown in the Declarations to this excess loss. Q. Premiums The first Named Insured shown in the Declarations: (i) is responsible for the payment of all premiums;and (ii) will be the payee for any return premiums We pay. R. Records You must keep records of all property covered under this Policy so that We can verify the amount of any loss. S. Recoveries (i) Any recoveries,whether effected before or after any payment under this Policy, whether made by Us or You, shall be applied net of the expense of such recovery: (1) First,to You in satisfaction of Your covered loss in excess of the amount paid under this Policy; (2) Second,to Us in satisfaction of amounts paid in settlement of Your claim; (3) Third,to You in satisfaction of any Deductible Amount; and (4) Fourth, to You in satisfaction of any loss not covered under this Policy. (ii) Recoveries do not include any recovery: (1) From insurance, suretyship, reinsurance, security or indemnity taken for Our benefit;or (2) Of original Securities after duplicates of them have been issued. T. Territory Where legally permissible,this Policy covers loss that You sustain resulting directly from an Occurrence taking place anywhere in the world. U. Transfer of Your Rights and Duties Under This Policy Your rights and duties under this Policy may not be transferred without Our written consent except in the case of death of an individual Named Insured. If You die, Your rights and duties will be transferred to Your legal representative but only while acting within the scope of duties as Your legal representative. Until Your legal representative is appointed, anyone having proper temporary custody of Your property will have Your rights and duties but only with respect to that property. V. Transfer of Your Rights of Recovery Against Others to Us You must transfer to Us all Your rights of recovery against any person or Includes copyrighted material of Insurance Services Offices,Inc.,with its permission. Page 22 of 24 CFI P001 CW(06/10) CAPP 2013 Property Policy 80 of 83 HISCOX Crime Insurance Policy Form • organization for any loss You sustain and for which We have paid or settled. You must also do everything necessary to secure those rights and do nothing after loss to impair them. W. Valuation—Settlement (i) The value of any loss for purposes of coverage under this Policy shall be determined as follows: (1) Loss of Money but only up to and including its face value. We will, at Your option, pay for loss of Money issued by any country other than the United States of America: (i) At face value in the Money issued by that country; or (ii) In the United States of America dollar equivalent determined by the rate of exchange published in The Wall Street Journal on the day the loss was Discovered. (2) Loss of Securities but only up to and including their face value at the close of business on the day the loss was Discovered. At Our option, We may: (i) Pay the market value of such Securities or replace them in kind, in which event You must assign to Us all Your rights,title and interest in and to those Securities; or (H) Pay the cost of any Lost Securities Bond required in connection with issuing duplicates of the Securities. However, We will be liable only for the payment of so much of the cost of the bond as would be charged for a bond having a penalty not exceeding the lesser of the: a. market value of the Securities at the close of business on the day the loss was Discovered;or b. the Limit of Insurance applicable to the Securities. (3) Loss of or damage to Other Property or loss from damage to the Premises or its exterior for the replacement cost of the property without deduction for depreciation. However,We will not pay more than the least of the following: (i) The cost to replace the lost or damaged property with property of comparable material and quality and used for the same purpose; (ii) The amount You actually spend that is necessary to repair or replace the lost or damaged property;or (iii) The Limit of Insurance applicable to the lost or damaged property. With regard to paragraph (i)through (iii)above, We will not pay on a replacement cost basis for any loss or damage: a. Until the lost or damaged property is actually repaired or Includes copyrighted material of Insurance Services Offices,Inc.,with its permission. Page 23 of 24 CHI P001 CW(06/10) CAPP 2013 Property Policy 81 of 83 HISCOX • Crime Insurance Policy Form replaced;and b. Unless the repairs or replacement are made as soon as reasonably possible after the loss or damage. If the lost or damaged property is not repaired or replaced,We will pay on an actual cash value basis. (ii) We will, at Our option, settle loss or damage to property other than Money: (1) In the Money of the country in which the loss or damage occurred;or (2) In the United States of America dollar equivalent of the Money of the country in which the loss or damage occurred determined by the rate of exchange published in The Wall Street Journal on the day the loss was Discovered. (iii) Any property that We pay for or replaces becomes Our property. II Includes copyrighted material of Insurance Services Offices,Inc.,with its permission. Page 24 of 24 CRI POoi CW(06/10) CAPP 2013 Property Policy 82 of 83 HISCOX ECONOMIC AND TRADE SANCTIONS POLICYHOLDER NOTICE Hiscox is committed to complying with the U.S. Department of Treasury Office of Foreign Assets Control (OFAC) requirements. OFAC administers and enforces economic sanctions policy based on Presidential declarations of national emergency. OFAC has identified and listed numerous foreign agents, front organizations, terrorists, and narcotics traffickers as Specially Designated Nationals (SDN's) and Blocked Persons. OFAC has also identified Sanctioned Countries. A list of Specially Designated Nationals, Blocked Persons and Sanctioned Countries may be found on the United States Treasury's web site http://www.treas.00v/offices/enforcement/ofac/. Economic sanctions prohibit all United States citizens (including corporations and other entities) and permanent resident aliens from engaging in transactions with Specially Designated Nationals, Blocked Persons and Sanctioned Countries. Hiscox may not accept premium from or issue a policy to insure property of or make a claim payment to a Specially Designated National or Blocked Person. Hiscox may not engage in business transactions with a Sanctioned Country. A Specially Designated National or Blocked Person is any person who is determined as such by the Secretary of Treasury. A Sanctioned Country is any country that is the subject of trade or economic embargoes imposed by the laws or regulations of the United States. In accordance with laws and regulations of the United States concerning economic and trade embargoes, this policy may be rendered void from its inception with respect to any term or condition of this policy that violates any laws or regulations of the United States concerning economic and trade embargoes including, but not limited to the following: (1) Any insured under this Policy, or any person or entity claiming the benefits of such insured, who is or becomes a Specially Designated National or Blocked Person or who is otherwise subject to US economic trade sanctions; (2) Any claim or suit that is brought in a Sanctioned Country or by a Sanctioned Country government,where any action in connection with such claim or suit is prohibited by US economic or trade sanctions; (3) Any claim or suit that is brought by any Specially Designated National or Blocked Person or any person or entity who is otherwise subject to US economic or trade sanctions; (4) Property that is located in a Sanctioned Country or that is owned by, rented to or in the care, custody or control of a Sanctioned Country government,where any activities related to such property are prohibited by US economic or trade sanctions; or (5) Property that is owned by, rented to or in the care, custody or control of a Specially Designated National or Blocked Person, or any person or entity who is otherwise subject to US economic or trade sanctions. Please read your Policy carefully and discuss with your broker/agent or insurance professional. You may also visit the US Treasury's website at http://www.treas.00v/offices/enforcement/ofac/. Hiscox Inc. www.hiscoxusa.com Page 1 of 1 INT N001 CW 01 09 CAPP 2013 Property Policy 83 of 83 Hello