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HomeMy WebLinkAboutC-2045 - Aviation Insurance PolicyCAL- BJRANCE r.u. t3ux ovoa. avi o i orrance diva., Torrance. Calif. 90510 (213) 542 -7301 Aviation Insurance U„�, Southern Marine & Aviation Inc. AVIATION MANAGERS THE INSURER IS: PURITAN INSURANCE COMPANY STAMFORD, CONNECTICUT (Hereinafter called the Company) A Stock Company Enquiries may be directed to: Administrative Office: 610 Poydras Street New Orleans, Louisiana 70130 This policy includes the Declaration, Insuring Agreements, Exclusions and Conditions which are attached hereto and made a part hereof as fully as though they were set forth over the signatures affixed hereon. IN WITNESS WHEREOF, the company has caused this policy to be executed and attested, but this policy shall not be valid unless countersigned by a duly authorized agent of the company and approved by the Aviation Managers. Secretary Form 100— C(Rev. 1115/80) PLEASE READ YOUR POLICY President I N DEPARATIONS NOTE: Attach endorsements PART 1 beneath. Declaration Page r/� Policy Number + + u _ -5720 This page with the Policy Cover - Form 100 and the Policy Provisions -Part 2, Form 102, completes this numbered AVIATION HULL and LIABILITY POLICY ISSUED BY PURITAN INSURANCE COMPANY ITEM 1. C y of T eulDnrt Rea ph Name of Insured (See H -2 -5311 Previous Policy No. ITEM 2. 33�D Nerrgort pnulss;A ^d ITEM 5. Loss Payable: Any loss under Coverages F, G, H and I is payable, to the P. O. Address Named Insured and Newport Beach, California 9266 ITEM 3. From lUti To� Policy Period: 12:01 A.M., Stan and time at t e address in Item 2. ITEM 4. Business of Named Insured Municipality as the latters interest may appear. ITEM 6. Aircraft Regularly Hangared at ❑ Tied Down at ® Airport and Location: f1�p_Coiinty Ai rpnrt The insurance afforded is only with respect to such and so many of the following coverages as are indicated by specific premium charge or charges. The limit of the company's liability against each such coverage shall be as stated herein, subject to all of the terms of this policy having reference thereto. if more than one aircraft is insured hereunder the terms of this policy shall app /y separately to each. ITEM 7. Liability Coverages LIMITS OF LIABILITY LIABILITY PREMIUMS Each Person Each Occurrence A. Bodily Injury - excluding Passengers $ $ $ Nil B. Property Damage xxxxx Hulzhes 300C Nil C. Passenger Liability L c. 225 2 Nil D. Single Limit- cluding Passengers xxxxx $500. DUI E. Medical Payments- cluding Crew Nil LIAB. TOTAL 1 $ Nil HULL COVERAGE IDENTIFIED F. All Risks; Ground & Flight. G. All Risks; Ground only - excluding taxiing. H. All Risks; Ground only - o Including taxiing. x m I. As endorsed hereon. a E 0 U ITEM 8. DESCRIPTION OF AIRCRAFT AND HULL COVERAGES HEREUNDER: THE INSURED AFFIRMS THAT EACH OF THE AIRCRAFT DESCRIBED IN THIS POLICY IS LICENSED UNDER A "STANDARD" AIRWORTHINESS CERTIFICATE AS DEFINED BY THE F.A.A. F.A.A. Cert. No. Make and Model Year Built Type En ine& H.P. 9 TOTAL SEATS INCL. CREW Amount of Insurance Hull Cover. age 9 HULL PREMIUMS DEDUCTIBLES Not In !n Motion Motion 48 Hulzhes 300C 81 R L c. 225 2 $118,500. F $14,220. $500. $11,8 'Type A- Amphibian L -Land SSeaplane HULL TOTAL $ ]14 220,00 POLICY PREMIUM $ 14,220,00 ITEM 9. The aircraft will be used only for the purposes indicated by "X" below (see Definitions) Executive Pleasure and Industrial Instruction Charter Transport" Business" Aid" and /or Rental" I Commercial" "Commercial" ® See Endorsement N1. ITEM 10. PILOTS -THE COVERAGE AFFORDED BY THIS POLICY SHALL NOT APPLY UNLESS THE AIRCRAFT IS OPERATED IN FLIGHT BY THE PILOTS ENDORSED HEREON AND THEN ONLY PROVIDED SAID PILOTS ARE QUALIFIED IN ACCORDANCE WITH THE TERMS OF THE ENDORSEMENT(S). ITEM 11. (a) THE NAMED INSURED IS THE SOLE OWNER OF THE AIRCRAFT AND THE AIRCRAFT IS NOT SUBJECT TO ANY ENCUMBRANCE OTHER THAN AS INDICATED IN ITEM 5. (b) DURING THE PAST YEAR NO INSURER HAS CANCELED OR DECLINED TO RENEW ANY AIRCRAFT INSURANCE ISSUED TO THE NAMED INSURED, EXCEPTION, IF ANY— Producer Catalina General Agency, Inc. '....d 'te 801 LOS onnTn i- Countersigned b_ y Authored Repre tive Form 101 4/71 — ABSENCE OF ANY ENTRY MEANS NO EXCEeTION. SOUTHERN MARINE & AVIATION UNDERWRITERI$ /, IN�. ❑ SOUTHERN MARINE & AVIATION, INC. I , 1_4v�mon Managers ORI�,IN" P AIRCRAFT ENDORSEMENT 0 In consideration of (an additiona1/XiraiLYrX) premium of S 7 t 888'00 , it is agreed that this policy is amended by the (addition /dMM7K q of the air- craft described below: The insurance afforded is only with respect to such and so many of the following coverages as are indicated by specific premium charge or charges. The limit of the company's liability against each such coverage shall be as stated herein, subject to all of the terms of this policy having reference thereto. if more than one aircraft is insured hereunder the terms of this policy shall apply separately to each. ITEM 1. Liability Coverages LIMITS OF LIABILITY LIABILITY PREMIUMS HULL COVERAGE IDENTIFIED F. All Risks; Ground &Flight. G. All Risks; Ground only — excluding taxiing. H. All Risks; Ground only — including taxiing. I. As endorsed hereon. o` x c x o E =o O Each Person Each Occurrence A. Bodily Injury —excluding Passengers $ $ $ Nil B. Property Damage xxxxx Nil C. Passenger Liability Nil D. Single Limit — cluding Passengers xxxxx Nil E. Medical Payments — cluding Crew • N LIAR. TOTAL 1 $ Nil ITEM 2. DESCRIPTION OF AIRCRAFT AND HULL COVERAGES HEREUNDER: THE INSURED AFFIRMS THAT EACH OF THE AIRCRAFT DESCRIBED IN THIS POLICY IS LICENSED UNDER A "STANDARD" AIRWORTHINESS CERTIFICATE AS DEFINED BY THE F.A.A. F.A.A. Cert. No Make and Model Year Built Type En & H.P. Engine g TOTAL SEATS INCL. CREW Amount of Insurance Hull Cover- age HULL PREMIUMS DEDUCTIBLES Not In Motion In Motion N9627F Hughes 300C 71 R L $55,000 F $ 7,888. $ $ 'Type A- Amphibian L -Land S- Seaplane HULLTOTAL$ 7 888 QQENDORSEMENT PREMIUM$ 7_RAR -Ofl Coverage Premium F $8,000.00 Nothing herein contained shall vary, alter, waive or extend any of the terms, provisions, representations, conditions or agreements of the policy other than as above stated. This endorsement becomes effective April 27, 1981 to be attached to and hereby made a part of Policy No H -2 -5720 issued by Puritan Insurance Company to City of Newport Beach This endorsement shall not be valid unless approved by the Aviation Managers. Endorsement No. #5 Date of Issue April 29, 1981 EHJ /pi Form 139' Rev. 11 172 ❑ Southern Marine & Aviation Underwriters, Inc. x❑ Southern Marine &/nAviati�o/ =n,,,, Inc. • L IN CONSIDERATION OF THE PREMIUM CHARGED IT IS UNDERSTOOD AND AGREED THAT: 1. SPECIAL PROVISIONS, paragraph IV POLICY PERIOD AND TERRITORY is changed to read as follows: IV POLICY PERIOD AND TERRITORY. This policy applies only to occurrences and loss happening during the policy period and within the United States of America (excluding Alaska), Canada and MexicoX�XkR� {@C14S9��4Xkk4� including over the water flights not greater than twenty - five (25) nautical miles from the nearest land, or while the aircraft is being transported be- tween ports thereof. Nothing herein contained shall vary, alter, waive or extend any of the terms, provisions, representations, conditions or agreements of the policy other than as above stated. This endorsement becomes effective April 22. 1981 to be attached to and hereby made a part of Policy No. H -2 -5720 issued by Puritan Insurance Corm any to City of Newport Beach This endorsement shall not be valid unless approved by the Aviation Managers. '! Endorsement No. N4 ❑ Southern nine &Aviation Un erwriters, Inc. Date of Issue April ?'� g8i Sou nn anne & Aviati n, Inc. EHJ /dri Form 137 2/74 ROTORCRAFT ENDORSEMENT In consideration of the premium for which this policy is written, it is agreed that with respect to any rotorcraft insured here- under the following amendments to the policy are incorporated: 1. The definitions of "flight" and "in motion" shall mean while the rotors are in motion. 2. Type as appearing under ITEM 8 of the De- clarations shall include R- Rotorcraft. Nothing herein contained shall vary, alter, waive or extend any of the terms, provisions, representations, conditions or agreements of the policy other than as above stated. This endorsement becomes effective April 22, 1981 to be attached to and hereby made a part of Policy No. H -2 -5720 issued by Puritan Insurance Company to City of Newport Beach This endorsement shall not be valid unless approved by the Aviation Managers. Endorsement No. #9 ❑ South n Marin & Aviation Underwrite So thern M ne & Aviation, Inc. Date of Issue nz ri 7 2� r 1 o81 7 - EHJ /dri Form 102 -L 1/71 PILOT QUALIFICATION ENDORSEMENT When in flight the aircraft shall operated only by the pilot(s) design* below and then only if the said pilot(s) is properly certificated and rated by the FAA and holds the valid and current certificates and ratings indicated by "X" and has the minimum flying experience, all as indicated below, and in addition holds a valid and current medical certificate: (1) Rncc ll Putter provided he has a ❑ Student Pilot Certificate and at all times is in full compliance with the Student Pilot Supervision Endorsement attached hereto. ❑ Private Pilot Certificate M Commercial Pilot Certificate ❑ Airline Transport Pilot Certificate WITH A Land Sea ❑ Single Engine Rating ❑ ❑ ❑ Instrument Rating ❑ Multi- Engine Rating ❑ ❑ ❑ Commercial Flight ❑ Center Line Thrust Rating ❑ ❑ Instructor Rating ❑ Aircraft Type Rating (Heavy Aircraft) ® (Other) Rntororaft —H li opter Rating And has a minimum tloogged flying time of: (a) 500 hoursxElxxx of which (b) 500 hours shall have been in a Kmkxgk§E� and (c) 500 hours shall have been in same make and model and (d) __ hours shall have been within the past 90 days in either (b) or (c) provided he has a ❑ Student Pilot Certificate and at all times is in full compliance with the Student Pilot Supervision Endorsement attached hereto. ❑ Private Pilot Certificate © Commercial Pilot Certificate ❑ Airline Transport Pilot Certificate WITH A Land Sea ❑ Single Engine Rating ❑ ❑ ❑ Instrument Rating ❑ Multi - Engine Rating ❑ ❑ ❑ Commercial Flight ❑ Center Line Thrust Rating ❑ ❑ Instructor Rating ❑ Aircraft Type Rating (Heavy Aircraft) Q (Other) R + ref 1ica 9ixig And has a minimum loggted flying time of: (a) to .wl .loe� d-fll5i na 500 hours of whi€,}� (b) 500 hours shall have been in axim r aorcra � and (c) 500 hours shall have been in same make and model and (d) -- hours shall have been within the past 90 days in either (b) or (c) *Comparable or more complex type shall be in reference to each particular aircraft insured herein and shall be defined as aircraft with not less than 50% of the total horsepower, the same number of or more engines, and a retractable landing gear if the insured aircraft is so equipped. Nothing herein contained shall vary, alter, waive or extend any of the terms, provisions, representations, conditions or agreements of the policy other than as above stated. This endorsement becomes effective APri'22� 1981 to be attached to and hereby made a part of Policy No. H -2 -5720 issued by Puri tan Tncnrsnne Cnmip anbr to Citv of Nelaoort Reach This endorsement shall not be valid unless approved by the Aviation Managers. Endorsement No. #2 (Page 1 of 3 Pages) ❑ Southern Marine &Aviati"nde s, ,"IncDate of Is sue April 23s 1481 � South M 'ne &Avati EHJ /dri Form 160 (Rev. 3179) ORIGINAL PILOT QUALIFICATION ENDORSEMENT When in flight the aircraft shah operated only by the pilot(s) design* below and then only if the said pilot(s) is properly certificated and rated by the FAA and holds the valid and current certificates and ratings indicated by "X" and has the minimum flying experience, all as indicated below, and in addition holds a valid and current medical certificate: (3) M 46144 464, Zo.� amended to Richard Schultz, Jr. provided he has a ❑ Student Pilot Certificate and at all times is in full compliance with the Student Pilot Supervision Endorsement attached hereto. ❑ Private Pilot Certificate E� Commercial Pilot Certificate ❑ Airline Transport Pilot Certificate WITH A Land Sea • Single Engine Rating ❑ ❑ ❑ Instrument Rating • Multi- Engine Rating ❑ ❑ ❑ Commercial Flight ❑ Center Line Thrust Rating ❑ ❑ Instructor Rating ❑ Aircraft Type Rating (Heavy Aircraft) ❑X (Other) Ro .nr fgre 't_He i cop .?r Rating (4) And has a minimum log ed fl ing time of: o�oeed flvina •i e (a) 3� hours of which rotorc ft (b) x.30 hours shall have been in �txfkwia r �t�caa�s>gtecect�* and (c) 330 hours shall have been in same make and model and (d) -- hours shall have been within the past 90 days in either (b) or (c) *Comparable or more complex type shall be in reference to each particular aircraft insured herein and shall be defined as aircraft with not less than 50% of the total horsepower, the same number of or more engines, and a retractable landing gear if the insured aircraft is so equipped. Nothing herein contained shall vary, alter, waive or extend any of the terms, provisions, representations, conditions or agreements of the policy other than as above stated. This endorsement becomes effective April 22, 1981 to be attached to and hereby made a part of Policy No. H -2 -5720 issued by Puritan Insurance Company to City of Newport Beach This endorsement shall not be valid unless approved by the Aviation Managers. Endorsement No. #2 (Page 2 of 3 Pages) Date of Issue April 23 1981 EHJ /dri Form 160 (Rev. 3/79) ORIGINAL ❑ Southern Marine & Aviation Underwriters! Inc. Q Southern arineZ?Aviation, Inc. % provided he has a Student Pilot Certificate and at all times is in full compliance with the Student Pilot Supervision Endorsement attached hereto. ❑ Private Pilot Certificate ®Commercial Pilot Certificate [I Airline Transport Pilot Certificate WITH A Land Sea ❑ Single Engine Rating ❑ ❑ ❑ Instrument Rating ❑ Multi- Engine Rating ❑ ❑ ❑ Commercial Flight ❑ Center Line Thrust Rating ❑ ❑ Instructor Rating ❑ Aircraft Type Rating (Heavy Aircraft) ® (Other) Rotorcraft— HPlicopt Pr Rating And has a minimum logged flying time of: (a) 259 hours of which++��� (b) 252 hours shall have been in aaz>fcincgxrmm�aCx�Secmx and (c) 252 hours shall have been in same make and model and (d) -- hours shall have been within the past 90 days in either (b) or (c) *Comparable or more complex type shall be in reference to each particular aircraft insured herein and shall be defined as aircraft with not less than 50% of the total horsepower, the same number of or more engines, and a retractable landing gear if the insured aircraft is so equipped. Nothing herein contained shall vary, alter, waive or extend any of the terms, provisions, representations, conditions or agreements of the policy other than as above stated. This endorsement becomes effective April 22, 1981 to be attached to and hereby made a part of Policy No. H -2 -5720 issued by Puritan Insurance Company to City of Newport Beach This endorsement shall not be valid unless approved by the Aviation Managers. Endorsement No. #2 (Page 2 of 3 Pages) Date of Issue April 23 1981 EHJ /dri Form 160 (Rev. 3/79) ORIGINAL ❑ Southern Marine & Aviation Underwriters! Inc. Q Southern arineZ?Aviation, Inc. % PILOT QUALIFICATION ENDORSEMENT When in flight the aircraft shale operated only by the pilot(s) design* below and then only if the said pilot(s) is properly certificated and rated by the FAA and holds the valid and current certificates and ratings indicated by "X" and has the minimum flying experience, all as indicated below, and in addition holds a valid and current medical certificate: (5) iC�7C At�y Pilot provided he has a ❑ Student Pilot Certificate and at all times is in full compliance with the Student Pilot Supervision Endorsement attached hereto. ❑ Private Pilot Certificate El Commercial Pilot Certificate ❑ Airline Transport Pilot Certificate WITH A Land Sea ❑ Single Engine Rating ❑ ❑ ❑ Instrument Rating ❑ Multi- Engine Rating ❑ ❑ ❑ Commercial Flight ❑ Center Line Thrust Rating ❑ ❑ Instructor Rating ❑ Aircraft Type Rating (Heavy Aircraft) ® (Other) Rotor craft— Helicopter Rating And has a minimum logged flying time of: Single Engine Rating (a) i ODD horns as pilot -in- command or solo, of hhich t� (b) I , non hours shall have been in � Aircraft Type Rating (Heavy o�rx aec f* and (c) 25 hours shall have been in same make and model and (d) 10 hours shall have been within the past 90 days in either (b) or (c) (2) ❑ Student Pilot Certificate and at all times is Supervision Endorsement attached hereto. ❑ Private Pilot Certificate ❑ Commercial WITH A Land ❑ Single Engine Rating ❑ ❑ Multi- Engine Rating ❑ ❑ Center Line Thrust Rating ❑ ❑ Aircraft Type Rating (Heavy Aircraft) ❑ (Other) And has a minimum logged flying time of provided he has a in full compliance with the Student Pilot Pilot Certificate Sea El El El ❑ Airline Transport Pilot Certificate ❑ Instrument Rating ❑ Commercial Flight Instructor Rating (a) hours as pilot -in- command or solo, of which (b) hours shall have been in an aircraft of a comparable or more complex type* and (c) hours shall have been in same make and model and (d) hours shall have been within the past 90 days in either (b) or (c) *Comparable or more complex type shall be in reference to each particular aircraft insured herein and shall be defined as aircraft with not less than 50% of the total horsepower, the same number of or more engines, and a retractable landing gear if the insured aircraft is so equipped. Nothing herein contained shall vary, alter, waive or extend any of the terms, provisions, representations, conditions or agreements of the policy other than as above stated. This endorsement becomes effective April 22, 19RI to be attached to and hereby made a part of Policy No. H-2-5720 issued by Puritan Insurance Company to City n£ Pderrpnrt Beach This endorsement shall not be valid unless approved by the Aviation Managers. Endorsement No. #2 (Page 3 of 3 Pages) ❑ Southern ri;�l iati on Underwriters, Date of Issue Apri'I fl4 1981 ® Souther i motion, In>c. EHJ /dri Form 160 (Rev. 3/79) ORIGINAL In consideration of the premium at which this policy is written, it is hereby understood and agreed that: 1. The purposes for which the aircraft will be used in ITEM 9 of the Declarations are completed to include the following: Including police work and search and rescue excluding slung cargo. 2. The use of a stretcher outside the helicopter is covered in the uses outlined in Paragraph 1 of this endorsement provided the stretcher is not being slung from the helicopter. 3. The definition of "Pleasure and Business" in the Policy Provisions Part 2 is amended to include the following: The Named Insured may receive reimbur- sement for direct operating expenses, or enter into reciprocal agreements with other municipalities excluding any profit. 4. The ten (10) days notice of cancellation referred to in Condition 25 of the Policy Provisions Part 2 is changed to read sixty (60) days. Nothing herein contained shall vary, alter, waive or extend any of the terms, provisions, representations, conditions or agreements of the policy other than as above stated. This endorsement becomes effective._Apri 1 22, 1981 to be attached to and hereby made a part of Policy No._ 14te' -579n issued by Puritnn Tncnranrp Company to Pi tar of TTpu.i nrt. Rparh This endorsement shall not be valid unless approved by the Aviation Managers. Endorsement No Date of Issue EHJ dri Form 102`L 1/71 #1 ❑ Southern Marine & Aviation Underwr ters, Inc. ( So er arsine & Aviatio� Inc. POLICY PROVISIONS PART 2 The Company agrees with the insured, both named in the Declarations made a part hereof, in consideration of the payment of the premium and in reliance upon the statements in the Declarations and subject to the Limits of Liability, Exclusions, Special Provisions and Conditions and other terms of this policy to afford those of the following coverages as specified in the Declarations: INSURING AGREEMENTS COVERAGE A — Bodily Injury Liability, Excluding Passengers. To pay on behalf of the insured all sums which the insured shall become legally obligated to pay as damages, including damages for care and loss of services, because of bodily injury, sickness or disease and, if arising out of the foregoing, mental anguish, including death resulting therefrom, sustained by any person or persons other than passengers, caused by an occurrence and arising out of the ownership, maintenance or use of the aircraft. COVERAGE B — Property Damage Liability. To pay on behalf of the insured all sums which the insured shall become legally obligated to pay as damages because of injury to or destruction of tangible property, including the loss of use thereof, caused by an occurrence and arising out of the ownership, maintenance or use of the aircraft. COVERAGE C — Passenger Bodily Injury Liability. To pay on behalf of the insured all sums which the insured shall become legally obligated to pay as damages, because of bodily injury, sickness or disease including damages for care and loss of services, because of bodily injury, sickness or disease and, if arising out of the foregoing, mental anguish, including death resulting there- from, sustained by any passenger or passengers caused by an occurrence and arising out of the ownership, maintenance or use of the aircraft. COVERAGE D — Single Limit — Bodily Injury (including or excluding Passengers) and Property Damage Liability. To pay on behalf of the insured all sums which the insured shall become legally obligated to pay as damages, including damages for care and loss of services, because of bodily injury, sickness or disease and, if arising out of the foregoing, mental anguish, including death resulting therefrom, sustained by any person excluding passengers, unless the Declarations describe Coverage D as "including passengers" and as damages because of injury to or destruction of tangible property, including loss of use thereof, caused by an occurrence and arising out of the ownership, maintenance or use of the aircraft. COVERAGE E — Medical Payments. To pay all reasonable expenses incurred within one year from the date of the occurrence for necessary medical, surgical, x -ray and dental services including prosthetic devices, and the necessary ambu- lance, hospital, professional nursing and funeral services to or for each person, and each member of the crew if the Declarations describe Coverage E as "including Crew ", who sustains bodily injury, caused by an occurrence, while in or on, entering or alighting from the aircraft providing the said aircraft is being used with the permission of the named insured. COVERAGE F — All Risks, Ground and Flight. To pay for any direct physical loss of or direct physical damage to the aircraft, including disappearance. COVERAGE G — All Risks, Ground only excluding Taxiing. To pay for any direct physical loss of or direct physical damage to the aircraft while not in flight or taxiing. COVERAGE H — All Risks, Ground only including Taxiing. To pay for any direct physical loss of or direct physical damage to the aircraft while not in flight. COVERAGE I — As endorsed hereon. SPECIAL PROVISIONS (APPLICABLE ONLY TO THE COVERAGES INDICATED) I. DEFENSE, SETTLEMENT, SUPPLEMENTARY PAY. MENTS. With respect to the insurance afforded under Coverages A, B, C and D, the Company shall: (a) defend any suit against the insured alleging such bodily injury or property damage and seeking damages which are payable under the terms of this policy even if any of the allegations of the suit are groundless, false or fraudulent; but the Company shall have the right to make such investigation, negotiation and settlement of any claim or suit as it deems expedient; (b) pay all premiums on bonds to release attachments for an amount not in excess of the applicable limit of liability of this policy, all premiums on appeal bonds required in any such defended suit, but without any obligation to apply for or furnish such bonds, all costs taxed against the insured in any such suit, all expenses incurred by the Company, all interest accruing after entry of judgment until the Company has paid, tendered or deposited in court such part of such judgment as does not exceed the limit of the Company's liability thereon; (c) pay expenses incurred by the insured, in the event of bodily injury, for such immediate medical and surgical relief to others as shall be imperative at the time of the occurrence; (d) reimburse the insured for all reasonable expenses (other than loss of earnings, or wages and salaries of employees of the insured) incurred at the Company's request. The Company agrees to pay the amounts incurred under this Special Provision except settlements of claims and suits, in addition to the applicable limit of liability of this policy. Form 102 Rev. 3/75 (1 of 6) II. AUTOMATIC INSURANCE FOR NEWLY ACQUIRED AIR- CRAFT. (Coverages A, B, C, D and E) This provision is not applicable if the approved uses under this policy include "Instruction and /or Rental ", "Charter Commercial ", or "Com- mercial". If the named insured who is the owner of the aircraft described in the Declarations shall acquire ownership of another aircraft of the fixed wing land plane type having a "Standard" airworthiness certificate issued by the FAA and shall so notify the Aviation Managers within 10 days following the date of its delivery to the named insured, such insurance as is afforded by this policy applies also to such other aircraft as of such delivery date provided; (a) It replaces any aircraft described in this policy, but only to the extent the insurance is applicable to the replaced aircraft, or; IN It is an additional aircraft and the Company insures all aircraft owned by the named insured at such delivery date, but only to the extent the insurance is applicable to all such previously owned aircraft and only to the extent of the lowest limits of liability provided for each coverage and in the event a particular coverage is not provided for any other owned aircraft then said coverage shall not apply to the newly acquired aircraft. This Special Provision does not apply except during the policy period, but if such delivery date is prior to the effective date of this policy, the insurance applies as of such effective date. Nor does this Special Provision apply when an aircraft replaces a replacement aircraft unless each replacement has been reported in the time and manner prescribed. The insurance on the replaced aircraft terminates upon delivery of the replacement aircraft. The named insured shall pay any additional premium required because of the application of the insurance to such other aircraft. III. USE OF OTHER AIRCRAFT —LIMITED. (Coverages A, B, C, D and E) This provision is not applicable if the approved uses under this policy include "Instruction and /or Rental ", "Charter Commercial" or "Commercial ". With respect to the named insured if one individual, and spouse of such individual if resident of the same household, either or both of whom own the aircraft described in the policy; (a) Such insurance as is afforded under Coverages A, B, C, D and E of this policy is extended to apply with respect to the use, by or on behalf of such named insured or spouse, of any fixed -wing, land plane having a "Standard" airworthiness certifi- cate issued by the FAA and provided it is not owned in full or in part by, not registered in the name of, not hired as a part of frequent use of hired aircraft or not furnished for regular use to such named insured or any member of the named insured's household or the insured against whom claim is made or suit is brought. (b) The insurance provided by this Special Provision shall apply only to such named insured and spouse and if either be a minor then the guardian of such minor. (c) The definition of "Insured" appearing under DEFINI- TIONS does not apply to this Special Provision and this Special Provision does not rover as an insured the owner of said other aircraft or any agent or employee of such owner. Id) The insurance provided by this Special Provision shall be excess over any other valid and collectible insurance available to the insured, either under a policy applicable with respect to the aircraft or otherwise, against a loss covered under this Special Provision. If such valid and collectible insurance shall have been written through the Aviation Managers, the applicable limit of liability under this policy shall be reduced by the applicable limit of liability under such other valid and collectible insurance. IV. POLICY PERIOD AND TERRITORY. This policy applies only to occurrences and loss happening during the policy period and within the United States of America, Canada or Mexico or while the aircraft is dismantled and being transported between ports thereof. EXCLUSIONS THIS POLICY DOES NOT APPLY AND NO COVERAGE IS AFFORDED: 1. To any insured who operates or permits the operation of the aircraft: (a) For any operation requiring a special permit or waiver from the FAA whether granted or not, or in violation of the operating limitations; (b) For any unlawful purpose, or any purpose or use including student instruction unless such uses are stated in the Declarations; (c) For any operation involving crop dusting, spraying, seeding, fertilizing, banner or glider towing, powerline or pipeline patrol, fish spotting, geological exploration or survey, any form of hunting or parachute jumping, unless such uses are expressly endorsed hereon. 2. To any insured while the aircraft is in flight: (a) If piloted by other than the pilot or pilots designated in the Declarations or endorsed hereon; (b) If piloted by a pilot not properly certificated, rated and qualified under the current applicable Federal Aviation Regula- tions for the operation involved whether said pilot is designated in the Declarations or endorsed hereon or not; (c) If its airworthiness certificate is not in full force and effect. 3. With respect to ionizing radiations or contamination by radioactivity; (a) To loss of, destruction of, or injury to any property whatsoever, or any loss or expense whatsoever resulting or arising therefrom; (b) To any legal liability of whatsoever nature caused or contributed to by or arising from any source thereof whatsoever. 4. To any liability assumed by the insured under any contract or agreement or to any loss or damage to the aircraft for which the insured has assumed the liability of others. 5. To any loss, damage or legal liability directly or indirectly occasioned by, happening through or in consequence of war, invasion, acts of foreign enemies, hostilities (whether war be declared or not), civil war, rebellion, revolution, insurrection, military or usurped power or confiscation or nationalization or requisition or destruction of or damage to property by or under the order of any government or public or local authority. 6. To any loss, or damage or legal liability due to any atomic or nuclear fission and /or fusion, or other like reaction or radioactive force or matter. Form 102 Rev. 3/75 (2 of b) UNDER COVERAGES A, B, C AND D (BODILY INJURY AND PROPERTY DAMAGE) 7. Noise and Pollution and Other Perils Exclusion Clause A. To claims directly or indirectly occasioned by, happen- ing through or in consequence of: (1) noise (whether audible to the human ear or not), vibration, sonic boom and any phenomena associated therewith, (2) pollution and contamination of any kind whatso- ever, (3) electrical and electromagnetic interference, (4) interference with the use of property; B. With respect to any provision in the policy concerning any duty of the Company to investigate or defend claims, such provision shall not apply and the Company shall not be required to defend (1) claims excluded by Paragraph A or (2) a claim or claims covered by the policy when combined with any claims excluded by Paragraph A (referred to below as "Combined Claims "). C. In respect of any Combined Claims, the Company shall (subject to proof of loss and the limits of the policy) reimburse the insured for that portion of the following items which may be allocated to the claim or claims covered by the policy: (1) damages awarded against the insured and (2) defense fees and expenses incurred by the insured. D. Nothing herein shall override any radioactive contamina- tion or other exclusion clause attached to or forming part of this pol icy. UNDER COVERAGES A, C AND D (BODILY INJURY) 8. To bodily injury to, sickness, disease or death of any employee of the insured while engaged in the employment of the insured or to any obligation for which the insured or any company as his insuror may be held liable under any Workmen's Compensation, Occupational Disease, Disability Benefit, Unem- ployment Compensation, Employers Liability, United States Longshoremen's and Harbor Workers Compensation Act, The Jones Act, Federal Employers Liability Act, Defense Bases Act, or any similar act, plan or law, whether state, federal or foreign. 9. To bodily injury to, sickness, disease, damage or death of any person who is a named insured, and if the named insures Js an individual or individuals, their spouse(s) or damage to the • rdspective estates, resulting from their bodily injury, sickness, elisease, damage or death. lJNDER COVERAGES B AND D (PROPERTY DAMAGE) 10. To injury to or destruction of property, including loss of use thereof, owned by, rented to, occupied or used by, or in the care, custody or control of, or transported by the insured. UNDER COVERAGES F, G, HAND I (HULL) 11. To loss or damage due to conversion, embezzlement or secretion by any person in possession of the aircraft under a bailment, lease, conditional sale, purchase agreement, mortgage or other encumbrance, nor for any loss or damage during or resulting therefrom; 12. To loss of use or depreciation however caused; 13. To robes, wearing apparel and other personal effects; 14. To loss or damage which is due and confined to wear and tear, deterioration, freezing, mechanical, structural, or electrical breakdown or failure, or to tires unless damaged by fire or stolen, unless any such loss or damage is the direct result of other physical damage covered by this policy; 15. To loss or damage to any aircraft equipped for ski or water landings and takeoffs unless said aircraft is described in the Declarations as a skiplane, seaplane or amphibian; 16. To any .aircraft subject to any lien, conditional sale, mortgage or_'b::ther' encumbrance not specifically declared and described in this =polico DEFINITIONS "AVIATION MANAGERS" shall mean Southern Marine & Aviation Underwriters, Inc., or Southern Marine & Aviation, Inc. "EXECUTIVE TRANSPORT" corporate owned or leased aircraft used for the transportation of executives, employees, guests and customers, flown by professional pilots who are employed for this specific purpose only, but excluding all uses for which any compensation is received, is to be received, or was anticipated. "PLEASURE AND BUSINESS" personal, pleasure, family and business uses but excluding any use for which any compensation is received, is to be received, or was anticipated. "INDUSTRIAL AID" includes the uses enumerated in the definition of "Pleasure and Business" and also Includes transpor- tation of executives, employees, guests and customers, but excluding any use for which any compensation is received, is to be received, or was anticipated. "COMPENSATION" shall mean any consideration exceeding, or greater than, the actual fuel cost and storage fees attributable to the particular flight involved. "SHARE EXPENSE FLIGHTS" shall be construed as "Pleasure and Business" uses provided that such sharing of expenses with the insured is limited to only the actual fuel cost and storage fees attributable to the particular flight involved. "INSTRUCTION AND /OR RENTAL" 'Pleasure and Business" uses and including the instruction of and /or rental to others for their "Executive Transport /Industrial Aid /Pleasure and Business" uses only, but excluding all other uses for which any compensa- tion is received, is to be received, or was anticipated. "CHARTER COMMERCIAL" "Pleasure and Business" uses and the transporting of passengers or freight for compensation but excluding all other uses for which any compensation is received, is to be received or was anticipated. "COMMERCIAL" includes all uses enumerated in the definitions of "Pleasure and Business ", "Instruction and /or Rental" and "Charter Commercial ". "AIRCRAFT" shall mean the aircraft described herein, and shall include the engines, propellers, operation and navigation instru- ments and radio equipment usually attached to the aircraft, including component parts detached and not replaced by similar parts and tools therein which are standard for the make and type of aircraft. "PASSENGER" means any person or persons while in, or entering the aircraft for the purpose of riding or flying therein, or alighting therefrom during or following a flight or attempted flight therein. "FEDERAL AVIATION ADMINISTRATION" or "FAA" shall mean the duly constituted authority of the United States of America having jurisdiction over civil aviation. "OCCURRENCE" means an accident, or a continuous or repeated exposure to conditions, which results in injury and /or Form 102 Rev. 3/75 (3 of 6) damage during the policy period, provided the injury and /or damage is not expected or intended from the standpoint of the insured. All injury and /or damage arising out of such exposure to substantially the same general conditions shall be deemed to rise out of one occurrence. "ASSAULT AND BATTERY" shall be deemed an occurrence only if committed by or at the direction of the insured solely for the purpose of preventing dangerous interference with the operation of the aircraft or for the protection of the aircraft. "NAMED INSURED" means the individual, partnership, corpora tion or other entity whose name is stated in Item 1 of the Declarations. "INSURED" the unqualified term "insured" wherever used in this policy with respect to Coverages A, 6, C and D shall include not only the Named Insured, but also any person while using or riding in the aircraft and any person or organization legally responsible for its use, provided the actual use is with the expressed permission of the named insured. The above mentioned coverages with respect to any person, or organization shall not apply to: (a) Any official or an employee of an insured with respect to bodily injury, sickness, disease, damage, or death of another official or employee of the same insured injured in the course of such employment in an occurrence arising out of the maintenance or use of the aircraft in the business of such insured; (b) Any person or organization, or any agent, or employee thereof (other than employees of the named insured while in the course and scope of such employment for the named insured) engaged in the manufacture or repair of aircraft, aircraft engines, aircraft parts or accessories, or in the operation of an aircraft electronic repair shop, airport, hangar, aircraft sales agency, airline, aircraft rental service, commercial flying service, air taxi or charter flying service, flying club or flying school with respect to any occurrence arising out of the manufacture or the operation thereof; (c) A student pilot or any person or organization renting or leasing the aircraft or anyone operating the aircraft with the actual or implied knowledge or consent of said student pilot, individual or organization renting or leasing the aircraft. "FLIGHT" shall mean the period from the time the aircraft moves forward in taking off or in attempting to take off until it has completed its landing and landing run after contact with the land or water. "DISAPPEARANCE" shall be deemed a loss under the flight provisions of this policy if the aircraft is missing and not reported for sixty days after commencing flight by the insured or his authorized agent. "TAXIING" shall mean while the aircraft is moving under its own power or momentum generated thereby other than while in flight. "FIRE" shall mean fire, lightning, explosion and self - Ignition unless fire or explosion is caused directly or indirectly by collision of the aircraft with any object. "THEFT" shall mean theft, robbery or pilferage including damage to the aircraft done by thieves. "MOORING" shall mean while, on water, a water - alighting aircraft is anchored, or moored, or during launching onto or hauling up therefrom (except under its own power or momen- tum). "IN MOTION" shall mean while the aircraft is taxiing or in flight CONDITIONS APPLICABLE TO COVERAGES A, B, C AND D (BODILY INJURY AND PROPERTY DAMAGE): 1. NOTICE OF OCCURRENCE. When an occurrence takes place written notice shall be given by or on behalf of the insured to the Aviation Managers at their New Orleans, Louisiana office whose address appears herein as soon as practicable. Such notice shall contain particulars sufficient to identify the insured and also reasonably obtainable information respecting the time, place and circumstances of the occurrence, the names and addresses of the injured and of available witnesses. 2. NOTICE OF CLAIM OR SUIT. If claim is matte or suit is brought against the Insured, the insured shall immediately forward to the Aviation Managers at their New Orleans, Louisiana office whose address appears herein, every demand, notice, summons or other process received by him or his representative. 3. LIMITS OF LIABILITY. The limit of liability stated in the Declarations for Coverages A and C as applicable to "each person" is the limit of the Company's liability for all damages, including damages for care and loss of services, arising out of bodily injury, sickness or disease and, if arising out of the foregoing, mental anguish including death resulting therefrom, sustained by one person as the result of any one occurrence; the limit of such liability stated in the Declarations as applicable to "each occurrence" is, subject to the above provision respecting each person, the total limit of the Company's liability for all damages, including damages for care and loss of services, arising out of bodily injury, sickness or disease and, if arising out of the foregoing, mental anguish including death resulting therefrom, sustained by two or more persons as the result of any one occurrence. The limit of liability stated in the Declarations for Coverage B as applicable to "each occurrence" is the total limit of the Company's liability for all damages arising out of injury to or destruction of all property of one or more persons or organiza- tions, including the loss of use thereof as the result of any one occurrence. The limit of liability stated in the Declarations for Coverage D as applicable to "each occurrence" is the total limit of the Company's liability for all damages, including damages for care and loss of services arising out of bodily injury, sickness or disease and, if arising out of the foregoing, mental anguish including death resulting therefrom, sustained by one or more persons and all damages arising out of injury to or destruction of all property of one or more persons or organizations, including the loss of use thereof, as the result of any one occurrence. 4. SEPARATE INSUREDS. The Insurance afforded under the coverages set forth above apply separately to each Insured against whom claim is made or suit is brought, but the inclusion herein of more than one insured shall not operate to increase the applicable limits of the Company's liability. 5. ACTION AGAINST COMPANY. No suit or action on this policy for recovery of any loss or claim shall be sustained in a court of law, or equity, unless as a condition precedent thereto, the insured shall have fully complied with all the terms of this policy, nor until the amount of the insured's obligation to pay ii{tall have been finally determined either by judgment against the insured after actual trial or by written agreement of the insured, the claimant and the Company. Form 102 Rev. 3/75 (4 of 6) Any person or organization or the legal representative thereof who has secured such judgment or written agreement shall thereafter be entitled to recover under this policy to the extent of the insurance afforded by this policy. Nothing contained in this policy shall give any person or organization any right to join the Company as co- defendent nor shall the Company be impleaded by the insured or his legal representative in any action against the insured to determine the insured's liability. Bankruptcy or insolvency of the insured or of the insured's estate shall not relieve the Company of any of its obligations hereunder. 6. FINANCIAL RESPONSIBILITY LAWS. When this policy is certified as proof of financial responsibility for the future under the provisions of any aircraft financial responsibility law, such insurance as is afforded by this policy for the coverages set forth above shall comply with the provisions of such law to the extent of the coverage and limits of liability required by such law, but in no event in excess of the limit of liability stated in this policy. The insured agrees to reimburse the Company for any payment made by the Company which it would not have been obligated to make under the terms of this policy except for the agreement contained in this paragraph. APPLICABLE TO COVERAGE E (MEDICAL PAYMENTS): 7. MEDICAL REPORTS: PROOF AND PAYMENT OF CLAIM. As soon as practicable the injured person or someone on his behalf shall give to the Company written proof of claim, under oath if required, and shall, after each request from the Company, execute authorization to enable the Company to obtain medical reports and copies of records. The injured person shall submit to physical examination by a physician selected by the Company when and as often as the Company may reasonably require. The Company may pay the injured person or any person or organization rendering the services and such payment shall reduce the amount payable hereunder for such injury. Payment here- under shall not constitute admission of liability of the insured, or except hereunder, of the Company. 8. LIMIT OF LIABILITY. The limit of liability stated in the Declarations as applicable to "each person" is the limit of the Company's liability for all expenses incurred by or on behalf of each person who sustains bodily injury in any one occurrence. The limit of liability as stated in the Declarations for Coverage E as applicable to "each occurrence" is subject to the above provision respecting each person, the total limit of the Company's liability for all expenses incurred by or on behalf of two or more persons who sustain bodily injury in any one occurrence. 9. ACTION AGAINST COMPANY. No action shall lie against the Company unless, as a condition precedent thereto, there shall have been full compliance with all the terms of this policy, nor until 60 days after the required proofs of claim have been filed with the Company. 10. OTHER INSURANCE. With respect to Special Provisions II and 111 only, the insurance afforded by Coverage E shall be excess insurance over any other valid and collectible Medical Payments insurance applicable thereto. 0 0 APPLICABLE TO COVERAGES F. G, H AND I (HULL): 11. INSUREDS DUTIES WHEN LOSS OCCURS. When loss occurs, the insured shall: (a) protect the aircraft, provided the insured is able to do so, whether or not the loss is covered by this policy, and any further loss due to the insured's failure to protect shall not be recoverable under this policy; reasonable expense incurred in affording such protection shall be deemed incurred at the Company's request; (b) give notice thereof as soon as practicable to the Aviation Managers, and also, in the event of theft, to the police, but shall not, except at his own cost, offer or pay any reward for recovery of the aircraft; (c) file proof of loss with the Aviation Managers or the Company within 60 days after the occurrence of loss, unless such time is extended in writing by the Aviation Managers or the Company in the form of a sworn statement by the insured setting forth the interest of FFhe insured and of all others in the property affected, any encumbZces. thereon, the actual cash value thereof at time of loss, the amount, place, time and cause of such loss and the description and amounts of all other insurance covering such property. (d) cooperate with the Aviation Managers and the Company and upon the Aviation Managers' or the Company's request shall assist in the recovery of property insured hereunder either by means of replevin proceedings or otherwise in effecting settle- ment, securing evidence, obtaining attendance of witness and prosecuting suits to such an extent and in such a manner as is deemed desirable by the Aviation Managers or the Company. Any such act or acts of the insured, the Aviation Managers or the Company, or their agents including recovering, saving or pre- serving the property described herein shall be construed as having been done for the benefit of all concerned and without prejudice to the rights of either party and where loss or damages suffered constitute a claim under this policy, then all reasonable expenses thus incurred shall also constitute a claim under this policy. Upon the Aviation Managers or the Company's request the insured shall exhibit the damaged property to the Aviation Managers or the Company and submit to examinations under oath by anyone designated by them, subscribe to same, and produce for their examination all pertinent records, log books, and sales invoices or certified copies if originals be lost, permitting copies thereof to be made, all at such reasonable times and places as the Aviation Managers or the Company shall designate. 12. LIMIT OF LIABILITY: NO ABANDONMENT. The limit of the Company's liability for direct physical loss of or direct physical damage to the aircraft shall be: (a) in case of total loss, the amount of insurance as stated in the Declarations less the applicable deductible; (b) in case of partial loss if repairs are made by a named insured, the total of the following items less the applicable deductible: (1) the named insured's costs for necessary material and parts of like kind and quality, (2) wages paid for labor at current straight time rates at the place of repair with no premium for overtime, plus 50% of such wages as an allowance for overhead and supervision, (3) cost of transportation; (c) if repairs are made by other than a named insured, the net cost to the named insured, excluding all premium charges for overtime, to repair the aircraft with material and parts of like kind and quality, and cost of transportation, less the applicable deductible; (d) whenever the Company pays a claim in an amount equal to the sum payable for a total loss, it shall at its option be entitled to all salvage value. There shall, however, be no abandonment of the aircraft to the Company without its consent; (e) the liability of the Company shall in no event, for any purpose hereunder, exceed the amount of insurance applicable to the aircraft less the applicable deductible. corm 102 Rev. 3/75 (5 of 6) 0 13. COST OF TRANSPORTATION. The cost of transporting new or damaged parts or of transporting the damaged aircraft io the place of repair and return to place of accident or home airport, whichever be the nearer, shall be limited to the least expensive method of reasonable transportation. In case of loss arising outside the Continental limits of the United States of America, or arising in Alaska or Hawaii, the limit of the Company's liability for salvaging the aircraft including the transportation thereof and /or the transportation of new or damaged parts to the place of repair and return to the place of accident or home airport, whichever be the nearer, shall be limited to the least expensive method of reasonable transporta- tion, but in no event shall exceed 15% of the claim otherwise payable. 14. APPRAISAL. If the named insured and the Company fail to agree as to the amount of loss, each shall, on the written demand of either, made within 60 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 15 days to agree upon such umpire, then, on the request of the named insured or the Company, such umpire shall be selected by a judge of a court of record in the county and state in which such appraisal is pending. The appraisers shall then appraise the loss, stating separately the actual cash value at the time of loss and the amount of loss, and failing to agree shall submit their differences to the umpire. An award in writing of any two shall determine the amount of loss. The named insured and the Company shall each pay his or its chosen appraiser and shall bear equally the other expenses of the appraisal and the umpire. The Company shall not be held to have waived any of its rights by any act relating to appraisal. 15. AUTOMATIC REINSTATEMENT. In the event of loss, whether or not covered by this policy, the amount of insurance in respect to any aircraft shall be reduced as of the time and date of loss by the amount of such loss and such reduced value shall continue until repairs are commenced when the amount of insurance shall automatically be increased by the value of the completed repairs until the original amount of insurance is fully reinstated or the policy has expired. 16. PAYMENT FOR LOSS: ACTION AGAINST COMPANY. Payment for loss shall not be required nor shall any suit or action on this policy for recovery of any loss or claim be sustainable in a court of law or equity unless, as a condition precedent thereto, the named insured shall have fully complied with all the terms of this policy, nor until 60 days after proof of loss is filed and the amount of loss is determined as provided in this policy nor at all unless commenced within 12 months after the physical happening of the occurrence which gave rise to the loss or claim. 17. RIGHTS AGAINST THIRD PARTIES. The Hull Coverage afforded under this policy shall not inure directly or indirectly to the benefit of any third party. Any act or agreement by the named insured whereby any right of the named insured to recover the full value of, or amount of damage to, any property lost or damaged and insured hereunder, from any third party liable therefor, is released, impaired or lost, shall relieve the Company from any liability under this policy for or on account of any such loss or damage, but the Company's right to retain or recover the premium shall not be affected. APPLICABLE TO ALL COVERAGES: 18. ASSISTANCE AND COOPERATION OF THE INSURED. The insured shall cooperate with the Aviation Managers and the Company and, upon their request, shall attend hearings and trials and shall assist in effecting settlements, securing and giving evidence, obtaining the attendance of witnesses and in the conduct of suits. The insured shall not, except at his own cost, make any payment, assume any obligation or incur any expense other than for such immediate medical and surgical relief to others as shall be imperative at the time of an occurrence or as provided under Condition 11, subparagraph (a). 19. ACTION AGAINST THE INSURED. The Aviation Managers shall have the power to institute and maintain suits in its own name, or the name of the Company, against the named insured for non - payment of premium, or for breach of any other obligation arising from or by reason of this insurance, and any judgment so obtained or release or receipt by the Aviation Managers or the Company shall be binding upon the Aviation Managers and the Company. 20. INSPECTION AND AUDIT. Any duly authorized represen tative of the Aviation Managers or the Company shall be permitted to inspect the aircraft, all applicable log books and aircraft records, and to examine the insured's books and records, relating thereto at any time during the policy period and within one year after the final termination of this policy or until final settlement of all claims hereunder, whichever is later, 21. SUBROGATION, Except in respect to Coverage E, if the Company becomes liable for any payment under this policy in respect of loss, damage or liability the Company shall be subrogated, to the extent of such payment, to all the rights and remedies of the insured against any party in respect of such loss, damage or liability and shall be entitled at their own expense to sue in the name of the insured. The insured shall give to the Company all such assistance in his power as the Company may require to secure their rights and remedies, and at the Company's request, shall execute all documents necessary to enable the Company effectively to bring suit in the name of the insured including the execution and delivery of the customary form of loan receipt. It is further agreed that such action by the Company need not include the applicable deductible, except when requested by the insured in writing. The insured shall do nothing to prejudice such rights. 22. OTHER INSURANCE. Except with respect to insurance specifically purchased by the named insured to apply in excess of this policy, if there is other insurance, in the insured's name or otherwise, against loss, liability or expense covered by this policy, the Company shall not be liable under this policy for a greater proportion of such loss, liability or expense than the applicable limit of the Company's liability as stated in the Declarations of this policy, bears to the total applicable limit of liability of all valid and collectible insurance against such loss, liability or expense, provided however, that with respect to Special Pro- visions II & III, of this policy, this insurance shall be excess insurance over any other valid and collectible insurance available to the insured, either as an insured under a policy applicable with respect to the aircraft or otherwise and, if such other insurance available to the insured shall have been written through the Aviation Managers, the limit of the Company's liability applicable Foam 102 Rev. 3/75 (6 of 6) to such loss under this policy shall be reduced by the applicable limit of liability under such other available insurance. 23. CHANGES. Notice to any agent or knowledge possessed by any agent or by any other person shall not effect a waiver or a change in any part of this policy or estop the Company from asserting any right under the terms of this policy; nor shall the terms of this policy be waived or changed, except by endorse- ment issued to form a part hereof signed by the Aviation Managers. 24. ASSIGNMENT. Assignment of interest under this policy shall not bind the Company until its consent is endorsed hereon by the Aviation Managers; if, however, the named insured shall die within the policy period, this policy, unless canceled, shall, provided written notice be given the Aviation Managers within 60 days, after the date of such death, apply to his legal representa- tives as the named insured. 25. CANCELLATION. This policy may be canceled by the named insured by surrender thereof to or by mailing to the Aviation Managers written notice stating when thereafter the cancellation shall be effective. This policy may be canceled by the Company or the Aviation Managers by mailing to the named insured at the address shown in this policy written notice stating when not less than 10 days thereafter such cancellation shall be effective. The mailing of notice as aforesaid shall be sufficient proof of notice. The time of the surrender or the effective date and hour of cancellation stated in the notice shall become the end of the policy period. Delivery of such written notice either by the named insured, the Company or the Aviation Managers shall be equivalent to mailing. If the named insured cancels, earned premium shall be computed in accordance with the customary short rate table and procedure. If the Company or the Aviation Managers cancel, earned premium shall be computed pro rata. Premium adjustment may be made either at the time cancellation is effected or as soon as practicable after cancellation becomes effective, but payment or tender of unearned premium is not a condition of cancellation. The Company shall not be liable for any return premium in respect to an aircraft on which a total loss has been paid. 26. FRAUD OR MISREPRESENTATION. This policy shall be void if the named insured has concealed or misrepresented any material fact or circumstance concerning this insurance or the subject thereof or in case of any fraud, attempted fraud or false swearing by the named insured touching any matter relating to this insurance or the subject thereof, whether before or after a loss. 27. DECLARATIONS. By acceptance of this policy the named insured affirms that the statements in the Declarations are his agreements and representations and the named insured acknowl- edges that this policy is issued in reliance upon the truth of such representations and that this policy embodies all agreements existing between himself and the Aviation Managers, the Com- pany, or any of their agents relating to this insurance. SOUTHERN MARINE & AVIATION HOME OFFICE 610 POYDRAS ST., (504) 524 -4131 NEW ORLEANS 70130 BRANCH OFFICES 3200 Wilshire Boulevard 1770 Saint James Place (213) 385 -8436 (713) 627 -9720 Los Angeles, California 90010 Houston, Texas 77027 10 Corporate Square Office Park 305 Park Tower Bldg., 5200 S. Yale (404) 321 -1660 (918) 664 -0101 Atlanta, Georgia 30329 Tulsa, Oklahoma 74135 CALIFORNIA AgTr July 22, 1980 i Aviation Insurance Policy Southern Marine & Aviation Inc. AVIATION MANAGERS THE INSURER IS: PURITAN INSURANCE COMPANY STAMFORD, CONNECTICUT (Hereinafter called the Company) A Stock Company Enquiries may be directed to: Administrative Office: 610 Poydras Street New Orleans, Louisiana 70130 This policy includes the Declaration, Insuring Agreements, Exclusions and Conditions which are attached hereto and made a part hereof as fully as though they were set forth over the signatures affixed hereon. IN WITNESS WHEREOF, the company has caused this policy to be executed and attested, but this policy shall not be valid unless countersigned by a duly authorized agent of the company and approved by the Aviation Managers. �A /�!I/ /CC(� �ic�• lent PLEASE READ YOUR POLICY Form 100— C(Rev. 1/15/80) DMARATIONS NOTE: Attach endorsements PART 1 baireatli.0edtstafion Page - - POlicy Nuril6er H -2 5311 :r. ITEM 1. City of Nevport Beach - This page with the Policy Cover — Form 100 and the Policy Provisions —Part 2, Form 102, completes this numbered AVIATION HULL and LIABILITY POLICY ISSUED.-.BY { Name of Insured ^ - .'.Rewrite of H -2 -4214 fl Previous Polk, [r&I ITEM 2: 3300 Newport .Boulevard ITEM 5,- Any loss under Coverages F, G, H and I is payable, to the P-, O, Address - . - .ns None . Named Insured and Newport Beach, California 92663 .. ITEM.3...FjQmApril 1, 1980 To April 1,. 1981 - as the letters interest may appear. P0146V RJLd.Od: 12:01 A.M., Standard time at the address in Item 2. ' - ITEM 6. Aircraft Regularly Han aced at ITEM 4. , '- e9 Y 9 ❑ Ted Down at © Airport and Business of�ed Insured Municipality - Location: Orange County Airport The insurance affol"W is only with.respact to such and so many of are fol"ing coverages as are indicated by specific premium charge or charges. The limit of the company's liability against each such coverage shall be as st in, subject to all of the terms of this policy having reference thereto. If more than one aircraft is insured hereunder the terms Of this policy shall _alately to each. ITEM 7. Liability Coverages LIMITS OF LIABILITY - PLIABILITY Engine& H.P. Each Person Each Occurrence Hull Cover- age PREMIUMS HULL COVERAGE IDENTIFIED F. AWRisks; Ground & Flight. G. All Risks; Ground only — excluding taxiing, $ H. All Risks; Ground 'only . -: w including taxiing.. As endorsed hereon g c A. Bodily Injury — excluding Passengers $ $ $ N31 B. Property Damage xxxxx - L c. 190 Nil C. Passenger Liability ` Nil. $ Nil Nil D. Single Limit — In cluding Passengers xxxxx 5, 000, 000. 5,00). E. Medical Payments— cluding Crew JLyc. 190 - Nil *See Passenger Endorsement -- — ' LIAB. TOTAL"' 'f 5,000.00 ITEM 8. DESCRIPTION.OF AIRCRAFT AND HULL-COVERAGES HEREUNDER: THE INSURED AFFIRMS THAT;EACH OF THE AIRCRAFT DESCRIBED, IN THIS POLICY IS LICENSED. UNDER A "STANDARD:' - .AIRWORTHINESS CERTIFICATE 'AS,DEFINED BY THE F.A.A. ` F.A.A. Cart .No. ;'y'- - - Make and Model - - Year Built' Type Engine& H.P. TOTAL SEATS INCL. CREW Amount of Insurance Hull Cover- age -. HULL PREMIUMS; _ DEDUCTIBLES Not In MN.1,I n In Motion 627F Hu hes 00 R L c. 190 2 $ Nil' Nil. $ Nil $ -- $ -- .458327 Hughes 300C 80: R JLyc. 190 2 Nil Nil Nil -- — ' I `Type A- Amphibian L -Land - -' SSeaplane .. HULL_TOTAL $ Nil POLICY PREMIUM $ 5, 000, 00 ITEM -9. The aircraft will be used only-for the purposes indicated by ­X" below lsee Definitions) Executive Pleasure and' Industrial Instruction Charter Transport" X " Businesi' - Aid " - and /or Rental" I Commercial' "Commercial" Q X Including police work and the Rotorcraft— Helicopter Rating; of Richard Lewis Miller ITEM 10. PILOTS —THEE COVERAGE AFFORDED BY THIS POLICY SHALL NOT APPLY UNLESS THE AIRCRAFT IS OPERATED IN FLIGHT BY THE PILOTS- ENDORSED HEREON AND THEN ONLY PROVIDED SAID PILOTS ARE QUALIFIED IN. ACCORDANCE WITH -,THE TERMS OF THE ENWRSEMENT(S). - - ITEM 1t. (a) THE NAMED- INSURED IS THE SOLE .OWNER OF THE AIRCRAFT AND THE AIRCRAFT IS NOT SUSJECJ_TQ "ANY ENCUMBRANCE OTHER THAN AS INDICATED IN ITEM 5. - .. (b) DURING THE -PAST YEAR NO INSURER. HAS CANCELED OR DECLINED TO RENEW ANY AIRCRAFT INSURANCE ISSUED TO THE NAMED INSURED, EXCEPTION, IF ANY, Producer Milum and Associates, Inc. 3720 Campus Drive Newport Beach, California 92660 Count rsrgnedby_ ;., Authorized Re resents " Form - 101. -4171 ABSENCE OF ANY ENTRv imEANS NO EXCEPTION. SOUTHERN MARINE & AVIATION UNDEPMRITERS, INC. ❑ SOUTHERN MARINE & AVIATION, INC. Aviation Managers Approved by ORIGINAL . MILUM AND ASSOCIATES, ye 3720 Campus Drive Newport Beach, California 92660 Telephone (714) 549 -9952 TO` City ob Newport Beach 3300 Newport BouP-evaAd NewpoAt Beach, Cati6onn,i.a 92660 SUBJECT: Attention: Mn.. Bitt Brown Re: HeUcopteA Insuhance Puritan Ins. Co., # H -2 -5311 Dean BI t: 7 DATE: App 8, 1980 .. , Iv DX Pf sotiNEC AP,�0„, ✓ qr,; Cl ry Nor of < ,. C/1trF �y .c�• I have enctosed endorsement adding BAuce FosteA as a pito authoA,ized undeA. the .insurance contract jon the HeUcoptens. We had atso discussed deeet-ing HarAy WiU ams. HoweveA, Since there -is no change in paem.iwn, the company has tebt his name on the List in c"e he .is put back on at a 2aten. daze. Sinceaety, MILUM. SOCIATFS G' 61NNV ORMICK Acca xecuti.ve cc: Mr. V.iAgdk Howe t LOT QUALIFICATION ENDORSEN T When in flight the aircraft I be operated only by the.'.pilot(s) Z'RSignated below and then only if the said pilot(s) is properly certificated and rated by'W FAA and holds the valid certificates and' rNngs and has the minimum flying experience, all as indicated below, and in addition holds a valid and current medical certificate: ' i+r In consideration of the premium at which this policy is written, it is hereby understood and agreed that Endorsement 111 is amended to include the following with all the other ;terms and requirements.i of Endorsement Ill remaining unchanged. 5. Bruce Foster Commercial Pilot's License Rotorcraft- Helicopter Rating having logged 3,500 hours in rotorcraft: *Comparable or more complex type shall be in reference to each particular aircraft insured herein and shall be defined as aircraft with not less than 50% of the total horsepower, the same number of or more engines, and a retractable landing gear if the insured aircraft is so equipped. Nothing herein contained shall vary, alter, waive or extend any of the terms, provisions, representations, conditions or agreements, of the policy' other than as above stated. This endorsement becomes effective April 2, 1980 to be attached to and hereby made a part of Policy No. H -2 -5311 issued by Puritan Insurance Company to City of Newport Beach This endorsement shall not be valid unless approved by the Aviation Managers, Endorsement No 119 ` ❑ Southern Marine & Aviation Underwriters, Inc. 13 Southen Marine & Aviation, Inc. B ORIGINAL y i Date of Issue April 3, -1980 EHJ /ED /mh Form 16OX 5/71 LOT QUALIFICATION. ENDORSEM T When in flight the aircraft W he operated only by the pilot(sIgnated below and then only if the said pilot(s) is properly certificateo and rated by the FAA,. _ " :-holds the valid certificates and ratings and has . the minimum flying exiieimrXltce, all as indicated below, and in addition holds a, valid and current medical certificate: *Comparable or more complex. type shall be in reference to each particular aircraft insured herein and shall be defined as aircraft with not less than 50% of the total horsepower, the same number of or more engines, and a retractable landing gear if the insured aircraft is so equipped. Nothing herein contained shall vary, alter, waive or extend any of the terms, provisions, representations, conditions or agreements of the policy other than as above stated. This endorsement becomes effective April 1, 1980 to be attached to and hereby made a part of Policy No. H -2 -5311 issued by Puritan Insurance Company to City of Newport Beach This endorsement shall not be valid unless approved by the Aviation Managers. Endorsement No. #1 ❑ Southern Marine & Aviation Underwriters, Inc, Date of Issue March 12, 1980 ® Southern Marine & Aviation, Inc. EHJ /ED /mh . By .. form 160X,5/71 ORIGINAL Charles. Olmstead, Commercial Pilot's License, Rotorcraft- Helicopter rating, having logged 3,670 hours in rotorcraft. 2. Tim Crundeman;S.Commercial Pilot's License, Rotorcraft - Helicopter rating, having logged 5,200 hours in rotorcraft. 3. Harry Williams, Commercial Pilot's License, Rotorcraft- Helicopter rating, having logged 3,145 hours in rotorcraft.. 4. Richard Lewis Miller, Private Pilot's License, who is at all times in full compliance with ' the Rotorcraft Supervision Endorsement attached hereto. *Comparable or more complex. type shall be in reference to each particular aircraft insured herein and shall be defined as aircraft with not less than 50% of the total horsepower, the same number of or more engines, and a retractable landing gear if the insured aircraft is so equipped. Nothing herein contained shall vary, alter, waive or extend any of the terms, provisions, representations, conditions or agreements of the policy other than as above stated. This endorsement becomes effective April 1, 1980 to be attached to and hereby made a part of Policy No. H -2 -5311 issued by Puritan Insurance Company to City of Newport Beach This endorsement shall not be valid unless approved by the Aviation Managers. Endorsement No. #1 ❑ Southern Marine & Aviation Underwriters, Inc, Date of Issue March 12, 1980 ® Southern Marine & Aviation, Inc. EHJ /ED /mh . By .. form 160X,5/71 ORIGINAL • LIMIT OF LIABILITY ENDORSEMENT PASSENGER LIABILITY In consideration of the premium charged for Coverage D it is agreed that the Company's liability under Coverage D for all claims arising out of Passenger Bodily Injury sustained by any one person shall not exceed $ 500,000.00 and subject to that limit for each person the Company's liability for all claims arising out of Passenger Bodily Injury in respect of any one occurrence is that limit for each person multiplied by the number of passenger seats and in no event is it to exceed $ 500,000.00 any one occurrence. Nothing herein contained shall vary, alter, waive or extend any of the terms, provisions, representations, conditions or agreements of the policy other than as above stated. This endorsement becomes effective April 1, 1 No. H -2 -5311 issued by Puritan In to City of Newport Beach to be attached to and hereby made a part of Policy This endorsement shall not be valid unless approved by the Aviation Managers. Endorsement No. #2 ❑ Southern Marine & Aviation Underwriters, Inc. JD Southern Marine & Aviation, Inc. Date of Issue March 12, 1980 EHJ /ED mh By '`z -arc'/ - Form 133 1171 In consideration of the premium at which this policy is written, it is hereby understood and agreed that: 1. This policy does not apply and no coverage is afforded to any Insured while any Rotorcraft insured under this policy is being operated by any pilot who does not hold a Rotor - craft- Helicopter Rating unless said pilot is accompanied at all times by a Flight Instructor properly certificated and rated by the FAA and holding a Rotorcraft - Helicopter Rating, or said instructor shall have specifically approved each flight or attempted flight by said pilot prior to lift -off. This exclusion shall not apply after said pilot has received his Rotorcraft - Helicopter Rating. 2. The Liability Coverage provided by this policy specifically excludes Passenger Legal Liability whenever the insured aircraft is being flown by Richard Lewis Miller and /or he is receiving rotorcraft instruction. This exclusion shall not apply after he receives a Rotorcraft - Helicopter Rating. Nothing herein contained shall vary, alter, waive or extend any of the terms, provisions, representations, conditions or agreements of the policy other than as above stated. This endorsement becomes effective April 1, 1980 to be attached to and hereby made a part of Policy No. H -2 -5311 issued by Puritan Insurance Company to City of Newport Beach This endorsement shall not be valid unless approved by the Aviation Managers. Endorsement No. #3 Dote of Issue March 12, 1980 EHJ /ED /mh Form 102 -L 1/71 ❑ Southern Marine & Aviation Underwriters, Inc. X1 Southern Marine & Aviation, Inc. By - o 0 NON -OWNED AIRCRAFT • LIABILITY ENDORSEME In consideration of an additional premium of $ Included , it is agreed that such insurance as is afforded by this policy is extended to include non -owned fixed wing aircraft*used by the named insured. A. PROVIDING this extension of coverage 1. is subject to all the terms and conditions including the Pilot Qualifications of the policy EXCEPT that the Special Provisions titled "Automatic Insurance for Newly Acquired Aircraft" and "Use of Other Aircraft Limited" are deleted in their entirety, and any insurance otherwise provided under the definition of "Insured" shall not be applicable. 2. only applies to aircraft not owned in whole or in part by, or leased under a long term lease or lease- option purchase agreement by the named insured or any member of the named insured's household, or if the named insured be a corporation or partner- ship, by any executive officer or partner thereof, or any member of the family of such executive officer or partner. 3. shall not apply to liability arising out of any product manufactured, sold, handled or distributed by the named insured. 4. shall not apply to any aircraft having a seating capacity, including crew, in excess of ay ply shall not apply to liability for loss of or damage to the aircraft or any consequential loss arising therefrom. B. This insurance shall be excess insurance over any other valid and collectible insurance available to the named insured, either as an insured under a policy applicable with respect to the aircraft or otherwise, against a loss covered thereunder. *Wherever the term "fixed wing aircraft" or "aircraft" appears in this endorsement it is amended to read "rotorcraft ". Nothing herein contained shall vary, alter, waive or extend any of the terms, provisions, representations, conditions or agreements of the policy other than as above stated. This endorsement becomes effective April 1, 1980 to be attached to and hereby made a part of Policy No. H -2 -5311 issued by Puritan Insurance Comnanv to City of Newport Beach This endorsement shall not be valid unless approved by the Aviation Managers. Endorsement No. #4 Dote of Issue March 12, 1980 EHJ /ED /mh Form 116 4/72 ❑ Southern Marine & Aviation Underwriters, Inc. ® Southern Marine & Aviation, Inc. By . MEXICO ENDORSEMENT . WARNING Unless you have automobile or aircraft insurance written by a Mexican insurance company, you may spend many hours or days in jail, if you have an accident in Mexico. Insurance coverage should be secured from a company licensed under the laws of Mexico to write such insurance in order to avoid complications and some other penalties possible under the laws of Mexico, including the possible impound. ment of your automobile or aircraft. This endorsement is issued only with respect to the liability portion of the coverage afforded by the policy in compliance with the law of California as the policy to which it is attached applied to occurrences and loss happening during the policy period and within Mexico. Nothing herein contained shall vary, alter, waive or extend any of the terms, provisions, representations, conditions or agreements of the policy other than as above stated. This endorsement becomes effective April 1, 1980 to be attached to and hereby made a part of Policy No. H -2 -5311 issued by Puritan Insurance Company to City of Newport Beach This endorsement shall not be valid unless approved by the Aviation Managers. Endorsement No. #6 SOUTHERN MARINE & AVIATION, INC. rX] Date of Issue March 12 1980 SOUTHERN MARINE �& AVIATIONpUNDERWRITERS, INC. ❑ EHJ /ED /mh jL Form 145 1(71 In consideration of the premium at which this policy is written, it is hereby understood and agreed that: 1. The Name of Insured in ITEM 1 of the Declarations is amended to read as follows as respects N58327 only: City of Newport Beach (Lessee) and First Municipal Leasing Corporation, a District of Columbia Corporation (Lessor) 2. If the Company cancels this policy, the Company agrees to give 30 days notice of cancellation to the following: First Municipal Leasing Corporation a District of Columbia Corporation 8301 East Prentice Avenue 30 Denver Technological Center Englewood, Colorado 80111 3. The coverage under this policy shall be applied first to claims against the City of Newport Beach and the remainder to claims against others. 4. The definition of "Pleasure and Business" in the Policy ;rovisions Part 2 is amended to include the following: The Named Insured may receive reimbursement for direct operating expenses, or enter into reciprocal agreements with other munici- palities excluding any profit. 5. The ten (10) days notice of cancellation referred to in Condition 25 of the Policy Provisions Part 2 is Changed to read sixty (60) days. 6. Automatic Insurance for Newly Acquired Aircraft in Special Provisions II of the Policy Provisions Part 2 is amended to allow 30 days notice to the Aviation Managers with the other terms and requirements of Special Pro- visions II remaining unchanged. 7. This policy shall be deemed excess over any other valid and collective insurance available to the City but subject to all policy coverage, terms, conditions, limitations and exclusions. Nothing herein contained shall vary, alter, waive or extend any of the terms, provisions, representations, conditions or agreements of the policy other than as above stated. This endorsement becomes effective April 1, 1980 to be attached to and hereby made a part of Policy No. H -2 -5311 issued by Puritan Insurance Company to City of Newport Beach This endorsement shall not be valid unless approved by the Aviation Managers. Endorsement No Date of Issue March 12, 1980 EHJ /ED/mh Form 102•L 1/71 #5 ❑ Southern Marine & Aviation Underwriters, Inc. ® Southern Marine & Aviation, Inc. By �J IN CONSIDERATION OF THE PREMIUM CHARGED IT IS UNDERSTOOD AND AGREED THAT: 1. SPECIAL PROVISIONS, paragraph IV POLICY PERIOD AND TERRITORY is changed to read as follows: IV POLICY PERIOD AND TERRITORY. This policy applies only to occurrences and loss happening during the policy period and within the United States of America (excluding Alaska), Canada and Mexico axxcel7a��x>rhoca6dx}xitidkg fM�FjSX, >iYi14t0'tXVr�itix��3C#sxcaBH�x inclur?ing over the water flights not greater than twenty - five (25) nautical miles from the nearest land, or while the aircraft is being transported between ports thereof. Nothing herein contained shall vary, alter, waive or extend any of the terms, provisions, representations, conditions or agreements of the policy other than as above stated. This endorsement becomes effective April 1, 1980 to be attached to and hereby made a part of Policy No. H -2 -5311 issued by Puritan Insurance Company to City of Newport Beach This endorsement shall not be valid unless approved by the Aviation Managers. Endorsement No. #7 ❑ Southern Marine & Aviation Underwriters, Inc. Date of Issue March 12 1980 Southern Marine & Aviation, Inc. EHJ /ED /mh By v Form 137 2/74 ROTORCRAFT ENDORSEMENT In consideration of the premium for which this policy is written, it is agreed that with respect to any rotorcraft insured here- under the following amendments to the policy are incorporated: 1. The definitions of "flight" and "in motion" shall mean while the rotors are in motion. 2. Type as appearing under ITEM 8 of the De- clarations shall ipclude R- Rotorcraft. Nothing herein contained shall vary, alter, waive or extend any of the terms, provisions, representations, conditions or agreements of the policy other than as above stated. This endorsement becomes effective April 1, 1980 to be attached to and hereby made a part of Policy No. H -2 -5311 issued by Puritan Insurance Company This endorsement shall not be valid unless approved by the Aviation Managers. Endorsement No. X18 El Southern Marine & Aviation Underwriters, Inc. ® Dote of Issue March 12, 1980 Southern Mari _ ne & Aviation, Inc. EHJ /ED /mh By Form 102'L 1/71 0 POLICY PROVISIONS PART 2 The Company agrees with the insured, both named in the Declarations made a part hereof, in consideration of the payment of the premium and in reliance upon the statements in the Declarations and subject to the Limits of Liability, Exclusions, Special Provisions and Conditions and other terms of this policy to afford those of the following coverages as specified in the Declarations: INSURING AGREEMENTS COVERAGE A — Bodily Injury Liability, Excluding Passengers. To pay on behalf of the insured all sums which the insured shall become legally obligated to pay as damages, including damages for care and loss of services, because of bodily injury, sickness or disease and, if arising out of the foregoing, mental anguish, including death resulting therefrom, sustained by any person or persons other than passengers, caused by an occurrence and arising out of the ownership, maintenance or use of the aircraft. COVERAGE B — Property Damage Liability. To pay on behalf of the insured all sums which the insured shall become legally obligated to pay as damages because of injury to or destruction of tangible property, including the loss of use thereof, caused by an occurrence and arising out of the ownership, maintenance or use of the aircraft. COVERAGE C — Passenger Bodily Injury Liability. To pay on behalf of the insured all sums which the insured shall become legally obligated to pay as damages, because of bodily injury, sickness or disease including damages for care and loss of services, because of bodily injury, sickness or disease and, if arising out of the foregoing, mental anguish, including death resulting there- from, sustained by any passenger or passengers caused by an occurrence and arising out of the ownership, maintenance or use of the aircraft. COVERAGE D — Single Limit — Bodily Injury (including or excluding Passengers) and Property Damage Liability. To pay on behalf of the insured all sums which the insured shall become legally obligated to pay as damages, including damages for care and loss of services, because of bodily injury, sickness or disease and, if arising out of the foregoing, mental anguish, including death resulting therefrom, sustained by any person excluding passengers, unless the Declarations describe Coverage D as "including passengers" and as damages because of injury to or destruction of tangible property, including loss of use thereof, caused by an occurrence and arising out of the ownership, maintenance or use of the aircraft. COVERAGE E — Medical Payments. To pay all reasonable expenses incurred within one year from the date of the occurrence for necessary medical, surgical, x -ray and dental services including prosthetic devices, and the necessary ambu- lance, hospital, professional nursing and funeral services to or for each person, and each member of the crew if the Declarations describe Coverage E as "including Crew ", who sustains bodily injury, caused by an occurrence, while in or on, entering or alighting from the aircraft providing the said aircraft is being used with the permission of the named insured. COVERAGE F — All Risks, Ground and Flight. To pay for any direct physical loss of or direct physical damage to the aircraft, including disappearance. COVERAGE G — All Risks, Ground only excluding Taxiing. To pay for any direct physical loss of or direct physical damage to the aircraft while not in flight or taxiing. COVERAGE H — All Risks, Ground only including Taxiing. To pay for any direct physical loss of or direct physical damage to the aircraft while not in flight. COVERAGE I — As endorsed hereon. SPECIAL PROVISIONS (APPLICABLE ONLY TO THE COVERAGES INDICATED) I. DEFENSE, SETTLEMENT, SUPPLEMENTARY PAY- MENTS. With respect to the insurance afforded under Coverages A, B, C and D, the Company shall: (a) defend any suit against the insured alleging such bodily injury or property damage and seeking damages which are payable under the terms of this policy even if any of the allegations of the suit are groundless, false or fraudulent; but the Company shall have the right to make such investigation, negotiation and settlement of any claim or suit as it deems expedient; (b) pay all premiums on bonds to release attachments for an amount not in excess of the applicable limit of liability of this policy, all premiums on appeal bonds required in any such defended suit, but without any obligation to apply for or furnish such bonds, all costs taxed against the insured in any such suit, all expenses incurred by the Company, all interest accruing after entry of judgment until the Company has paid, tendered or deposited in court such part of such judgment as does not exceed the limit of the Company's liability thereon; (c) pay expenses incurred by the insured, in the event of bodily injury, for such immediate medical and surgical relief to others as shall be imperative at the time of the occurrence; (d) reimburse the insured for all reasonable expenses (other than loss of earnings, or wages and salaries of employees of the insured) incurred at the Company's request. The Company agrees to pay the amounts incurred under this Special Provision except settlements of claims and suits, in addition to the applicable limit of liability of this policy. Form 102 Rev. 3/75 (1 of (j) IL AUTOMATIC INSURANCE FOR NEWLY ACQUIRED AIR- CRAFT. (Coverages A, B, C, D and E) This provision is not applicable if the approved uses under this policy include "Instruction and/or Rental ", "Charter Commercial ", or "Com- mercial". If the named insured who is the owner of the aircraft described in the Declarations shall acquire ownership of another aircraft of the fixed wing land plane type having a "Standard" airworthiness certificate issued by the FAA and shall so notify the Aviation Managers within 10 days following the date of its delivery to the named insured, such insurance as is afforded by this policy applies also to such other aircraft as of such delivery date provided; (a) It replaces any aircraft described in this policy, but only to the extent the insurance is applicable to the replaced aircraft, or; (b) It is an additional aircraft and the Company insures all aircraft owned by the named insured at such delivery date, but only to the extent the insurance is applicable to all such previously owned aircraft and only to the extent of the lowest limits of liability provided for each coverage and in the event a particular coverage is not provided for any other owned aircraft then said coverage shall not apply to the newly acquired aircraft. This Special Provision does not apply except during the policy period, but if such delivery date is prior to the effective date of this policy, the insurance applies as of such effective date. Nor does this Special Provision apply when an aircraft replaces a replacement aircraft unless each replacement has been reported in the time and manner prescribed. The insurance on the replaced aircraft terminates upon delivery of the replacement aircraft. The named insured shall pay any additional premium required because of the application of the insurance to such other aircraft. 111. USE OF OTHER AIRCRAFT —LIMITED. (Coverages A, B, C, D and E) This provision is not applicable if the approved uses under this policy include "Instruction and /or Rental ", "Charter Commercial" or "Commercial ". With respect to the named insured if one individual, and spouse of such individual if resident of the same household, either or both of whom own the aircraft described in the policy; (a) Such insurance as is afforded under Coverages A, B, C, D and E of this policy is extended to apply with respect to the use, by or on behalf of such named insured or spouse, of any fixed wing, land plane having a "Standard" airworthiness certifi- cate issued by the FAA and provided it is not owned in full or in part by, not registered in the name of, not hired as a part of frequent use of hired aircraft or not furnished for regular use to such named insured or any member of the named insured's household or the insured against whom claim is made or suit is brought. (b) The insurance provided by this Special Provision shall apply only to such named insured and spouse and if either be a minor then the guardian of such minor. (c) The definition of "Insured" appearing under DEFINI. TIONS does not apply to this Special Provision and this Special Provision does not cover as an insured the owner of said other aircraft or any agent or employee of such owner. (d) The insurance provided by this Special Provision shall be excess over any other valid and collectible insurance available to the insured, either under a policy applicable with respect to the aircraft or otherwise, against a loss covered under this Special Provision. If such valid and collectible insurance shall have been written through the Aviation Managers, the applicable limit of liability under this policy shall be reduced by the applicable limit of liability under such other valid and collectible insurance. IV. POLICY PERIOD AND TERRITORY. This policy applies only to occurrences and loss happening during the policy period and within the United States of America, Canada or Mexico or while the aircraft is dismantled and being transported between ports thereof. EXCLUSIONS THIS POLICY DOES NOT APPLY AND NO COVERAGE IS AFFORDED: 1. To any insured who operates or permits the operation of the aircraft: (a) For any operation requiring a special permit or waiver from the FAA whether granted or not, or in violation of the operating limitations; (b) For any unlawful purpose, or any purpose or use including student instruction unless such uses are stated in the Declarations; (c) For any operation involving crop dusting, spraying, seeding, fertilizing, banner or glider towing, powerline or pipeline patrol, fish spotting, geological exploration or survey, any form of hunting or parachute jumping, unless such uses are expressly endorsed hereon. 2. To any insured while the aircraft is in flight: (a) If piloted by other than the pilot or pilots designated in the Declarations or endorsed hereon; (W If piloted by a pilot not properly certificated, rated and qualified under the current applicable Federal Aviation Regula tions for the operation involved whether said pilot is designated in the Declarations or endorsed hereon or not; (c) If its airworthiness certificate is not in full force and effect. 3. With respect to ionizing radiations or contamination by radioactivity; (a) To loss of, destruction of, or injury to any property whatsoever, or any loss or expense whatsoever resulting or arising therefrom; (b) To any legal liability of whatsoever nature caused or contributed to by or arising from any source thereof whatsoever. 4. To any liability assumed by the insured under any contract or agreement or to any loss or damage to the aircraft for which the insured has assumed the liability of others. 5. To any loss, damage or legal liability directly or indirectly occasioned by, happening through or in consequence of war, invasion, acts of foreign enemies, hostilities (whether war be declared or not), civil war, rebellion, revolution, insurrection, military or usurped power or confiscation or nationalization or requisition or destruction of or damage to property by or under the order of any government or public or local authority. 6. To any loss, or damage or legal liability due to any atomic or nuclear fission and /or fusion, or other like reaction or radioactive force or matter. Form ] 02 Rev. 3/75 (2 of b) UNDER COVERAGES A, B, C AND D (BODILY INJURY AND PROPERTY DAMAGE) 7. Noise and Pollution and Other Perils Exclusion Clause A. To claims directly or indirectly occasioned by, happen ing through or in consequence of: (1) noise (whether audible to the human ear or not), vibration, sonic boom and any phenomena associated therewith, (2) pollution and contamination of any kind whatso ever. (3) electrical and electromagnetic interference, (4) interference with the use of property; B. With respect to any provision in the policy concerning any duty of the Company to investigate or defend claims, such provision shall not apply and the Company shall not be required to defend (1) claims excluded by Paragraph A or (2) a claim or claims covered by the policy when combined with any claims excluded by Paragraph A (referred to below as "Combined Claims "). C. In respect of any Combined Claims, the Company shall (subject to proof of loss and the limits of the policy) reimburse the insured for that portion of the following items which may be allocated to the claim or claims covered by the policy: (11 damages awarded against the insured and (2) defense fees and expenses incurred by the insured. D. Nothing herein shall override any radioactive contamina- tion or other exclusion clause attached to or forming part of this pol icy. UNDER COVERAGES A, C AND D (BODILY INJURY) 8. To bodily injury to, sickness, disease or death of any employee of the insured while engaged in the employment of the insured or to any obligation for which the insured or any company as his insuror may be held liable under any Workmen's Compensation, Occupational Disease, Disability Benefit, Unem- ployment Compensation, Employers Liability, United States Longshoremen's and Harbor Workers Compensation Act, The Jones Act, Federal Employers Liability Act, Defense Bases Act, or any similar act, plan or law, whether state, federal or foreign. 9. To bodily injury to, sickness, disease, damage or death of any person who is a named insured, and if the named insured is an individual or individuals, their spouselsl or damage to the • respective estates, resulting from their bodily injury, sickness, disease, damage or death. UNDER COVERAGES B AND D (PROPERTY DAMAGE) 10. To injury to or destruction of property, including loss of use thereof, owned by, rented to, occupied or used by, or in the care, custody or control of, or transported by the insured. UNDER COVERAGES F, G, H AND I (HULL) 11. To loss or damage due to conversion, embezzlement or secretion by any person in possession of the aircraft under a bailment, lease, conditional sale, purchase agreement, mortgage or other encumbrance, nor for any loss or damage during or resulting therefrom; • 12. To loss of use or depreciation however caused; 13. To robes, wearing apparel and other personal effects; 14. To loss or damage which is due and confined to wear and tear, deterioration freezing, mechanical, structural, or electrical breakdown or failure, or to tires unless damaged by fire or stolen, unless any such loss or damage is the direct result of other physical damage covered by this policy; 15. To loss or damage to any aircraft equipped for ski or water landings and takeoffs unless said aircraft is described in the Declarations as a skiplane, seaplane or amphibian; 16. To any aircraft subject to any lien, conditional sale, mortgage or other encumbrance not specifically declared and described in this policy. DEFINITIONS "AVIATION MANAGERS" shall mean Southern Marine & Aviation Underwriters, Inc., or Southern Marine & Aviation, Inc. "EXECUTIVE TRANSPORT" corporate owned or leased aircraft used for the transportation of executives, employees, guests and customers, flown by professional pilots who are employed for this specific purpose only, but excluding all uses for which any compensation is received, is to be received, or was anticipated. "PLEASURE AND BUSINESS" personal, pleasure, family and business uses but excluding any use for which any compensation is received, is to be received, or was anticipated. "INDUSTRIAL AID" includes the uses enumerated in the definition of "Pleasure and Business" and also includes transpor tation of executives, employees, guests and customers, but excluding any use for which any compensation is received, is to be received, or was anticipated. "COMPENSATION" shall mean any consideration exceeding, or greater than, the actual fuel cost and storage fees attributable to the particular flight involved. "SHARE EXPENSE FLIGHTS" shall be construed as 'Pleasure and Business" uses provided that such sharing of expenses with the insured is limited to only the actual fuel cost and storage fees attributable to the particular flight involved. "INSTRUCTION AND /OR RENTAL" "Pleasure and Business" uses and including the instruction of and /or rental to others for their "Executive Transport /Industrial Aid /Pleasure and Business" uses only, but excluding all other uses for which any compensa tion is received, is to be received, or was anticipated. "CHARTER COMMERCIAL" 'Pleasure and Business" uses and the transporting of passengers or freight for compensation but excluding all other uses for which any compensation is received, is to be received or was anticipated. "COMMERCIAL" includes all uses enumerated in the definitions of 'Pleasure and Business ", "Instruction and /or Rental" and "Charter Commercial ". "AIRCRAFT" shall mean the aircraft described herein, and shall include the engines, propellers, operation and navigation instru- ments and radio equipment usually attached to the aircraft, including component parts detached and not replaced by similar parts and tools therein which are standard for the make and type of aircraft. "PASSENGER" means any person or persons while in, or entering the aircraft for the purpose of riding or flying therein, or alighting therefrom during or following a flight or attempted flight therein. "FEDERAL AVIATION ADMINISTRATION" or "FAA" shall mean the duly constituted authority of the United States of America having jurisdiction over civil aviation. "OCCURRENCE" means an accident, or a continuous or repeated exposure to conditions, which results in injury and /or Form 102 Rev, 3/75 (3 of 6) damage during the policy period, provided the injury and /or damage is not expected or intended from the standpoint of the insured. All injury and /or damage arising out of such exposure to substantially the same general conditions shall be deemed to rise Out of one occurrence. "ASSAULT AND BATTERY" shall be deemed an occurrence only if committed by or at the direction of the insured solely for the purpose of preventing dangerous interference with the operation of the aircraft or for the protection of the aircraft. "NAMED INSURED" means the individual, partnership, corpora tion or other entity whose name is stated in Item 1 of the Declarations. "INSURED" the unqualified term "insured" wherever used in this policy with respect to Coverages A, B, C and D shall include not only the Named Insured, but also any person while using or riding in the aircraft and any person or organization legally responsible for its use, provided the actual use is with the expressed permission of the named insured. The above mentioned coverages with respect to any person, or organization shall not apply to (a) Any official or an employee of an insured with respect to bodily injury, sickness, disease, damage, or death of another official or employee of the same insured injured in the course of such employment in an occurrence arising out of the maintenance or use of the aircraft in the business of such insured; (b) Any person or organization, or any agent, or employee thereof (other than employees of the named insured while in the course and scope of such employment for the named insured) engaged in the manufacture or repair of aircraft, aircraft engines, aircraft parts or accessories, or in the operation of an aircraft electronic repair shop, airport, hangar, aircraft sales agency, airline, aircraft rental service, commercial flying service, air taxi or charter flying service, flying club or flying school with respect to any occurrence arising out of the manufacture or the operation thereof; (c) A student pilot or any person or organization renting or leasing the aircraft or anyone operating the aircraft with the actual or implied knowledge or consent of said student pilot, individual or organization renting or leasing the aircraft. "FLIGHT" shall mean the period from the time the aircraft moves forward in taking off or in attempting to take off until it has completed its landing and landing run after contact with the land or water. "DISAPPEARANCE" shall be deemed a loss under the flight provisions of this policy if the aircraft is missing and not reported for sixty days after commencing flight by the insured or his authorized agent. "TAXIING" shall mean while the aircraft is moving under its own power or momentum generated thereby other than while in flight. "FIRE" shall mean fire, lightning, explosion and self- ignition unless fire or explosion is caused directly or indirectly by collision of the aircraft with any object. "THEFT" shall mean theft, robbery or pilferage including damage to the aircraft done by thieves. "MOORING" shall mean while, on water, a water - alighting aircraft is anchored, or moored, or during launching onto or hauling up therefrom (except under its own power or momen- tum). "IN MOTION" shall mean while the aircraft is taxiing or in flight. CONDITIONS APPLICABLE TO COVERAGES A, B, C AND D (BODILY INJURY AND PROPERTY DAMAGE): 1. NOTICE OF OCCURRENCE. When an occurrence takes place written notice shall be given by or on behalf of the insured to the Aviation Managers at their New Orleans, Louisiana office whose address appears herein as soon as practicable. Such notice shall contain particulars sufficient to identify the insured and also reasonably obtainable information respecting the time, place and circumstances of the occurrence, the names and addresses of the injured and of available witnesses. 2. NOTICE OF CLAIM OR SUIT. If claim is made or suit is brought against the insured, the insured shall immediately forward to the Aviation Managers at their New Orleans, Louisiana office whose address appears herein, every demand, notice, summons or other process received by him or his representative. 3. LIMITS OF LIABILITY. The limit of liability stated in the Declarations for Coverages A and C as applicable to "each person" is the limit of the Company's liability for all damages, including damages for care and loss of services, arising out of bodily injury, sickness or disease and, if arising out of the foregoing, mental anguish including death resulting therefrom, sustained by one person as the result of any one occurrence; the limit of such liability stated in the Declarations as applicable to "each occurrence" is, subject to the above provision respecting each person, the total limit of the Company's liability for all damages, including damages for care and loss of services, arising out of bodily injury, sickness or disease and, if arising out of the foregoing, mental anguish including death resulting therefrom, sustained by two or more persons as the result of any one occurrence. The limit of liability stated in the Declarations for Coverage B as applicable to "each occurrence" is the total limit of the Company's liability for all damages arising out of injury to or destruction of all property of one or more persons or organiza- tions, including the loss of use thereof as the result of any one occurrence. The limit of liability stated in the Declarations for Coverage D as applicable to "each occurrence" is the total limit of the Company's liability for all damages, including damages for care and loss of services arising out of bodily injury, sickness or disease and, if arising out of the foregoing, mental 'anguish including death resulting therefrom, sustained by one or more persons and all damages arising out of injury to or destruction of all property of one or more persons or organizations, including the loss of use thereof, as the result of any one occurrence. 4. SEPARATE INSUREDS. The insurance afforded under the coverages set forth above apply separately to each insured against whom claim is made or suit is brought, but the inclusion herein of more than one insured shall not operate to increase the applicable limits of the Company's liability. 5. ACTION AGAINST COMPANY. No suit or action on this policy for recovery of any loss or claim shall be sustained in a court of law, or equity, unless as a condition precedent thereto, the insured shall have fully complied with all the terms of this policy, nor until the amount of the insured's obligation to pay shall have been finally determined either by judgment against the insured after actual trial or by written agreement of the insured, the claimant and the Company. corm 102 Rev. 3/75 (4 of 6) y Any person or organization or the legal representative thereof who has secured such judgment or written agreement shall thereafter be entitled to recover under this policy to the extent of the insurance afforded by this policy. Nothing contained in this policy shall give any person or organization any right to join the Company as co- defendent nor shall the Company be impleaded by the insured or his legal representative in any action against the insured to determine the insured's liability. Bankruptcy or insolvency of the insured or of the insured's estate shall not relieve the Company of any of its obligations hereunder. 6. FINANCIAL RESPONSIBILITY LAWS. When this policy is certified as proof of financial responsibility for the future under the provisions of any aircraft financial responsibility law, such insurance as is afforded by this policy for the coverages set forth above shall comply with the provisions of such law to the extent of the coverage and limits of liability required by such law, but in no event in excess of the limit of liability stated in this policy. The insured agrees to reimburse the Company for any payment made by the Company which it would not have been obligated to make under the terms of this policy except for the agreement contained in this paragraph. APPLICABLE TO COVERAGE E (MEDICAL PAYMENTS): 7. MEDICAL REPORTS: PROOF AND PAYMENT OF CLAIM. As soon as practicable the injured person or someone on his behalf shall give to the Company written proof of claim, under oath if required, and shall, after each request from the Company, execute authorization to enable the Company to obtain medical reports and copies of records. The injured person shall submit to physical examination by a physician selected by the Company when and as often as the Company may reasonably require. The Company may pay the injured person or any person or organization rendering the services and such payment shall reduce the amount payable hereunder for such injury. Payment here- under shall not constitute admission of liability of the insured, or except hereunder, of the Company. 8. LIMIT OF LIABILITY. The limit of liability stated in the Declarations as applicable to "each person" is the limit of the Company's liability for all expenses incurred by or on behalf of each person who sustains bodily injury in any one occurrence. The limit of liability as stated in the Declarations for Coverage E as applicable to "each occurrence" is subject to the above provision respecting each person, the total limit of the Company's liability for all expenses incurred by or on behalf of two or more persons who sustain bodily injury in any one occurrence. 9. ACTION AGAINST COMPANY. No action shall lie against the Company unless, as a condition precedent thereto, there shall have been full compliance with all the terms of this policy, nor until 60 days after the required proofs of claim have been filed with the Company. 10. OTHER INSURANCE. With respect to Special Provisions II and I I I only, the insurance afforded by Coverage E shall be excess insurance over any other valid and collectible Medical Payments insurance applicable thereto. • ' APPLICABLE TO COVERAGES F. G, H AND 1 (HULL): 11. INSURED'S DUTIES WHEN LOSS OCCURS. When loss occurs, the insured shall: (a) protect the aircraft, provided the insured is able to do so, whether or not the loss is covered by this policy, and any further loss due to the insured's failure to protect shall not be recoverable under this policy; reasonable expense incurred in affording such protection shall be deemed incurred at the Company's request; (b) give notice thereof as soon as practicable to the Aviation Managers, and also, in the event of theft, to the police, but shall not, except at his own cost, offer or pay any reward for recovery of the aircraft; (c) file proof of loss with the Aviation Managers or the Company within 60 days after the occurrence of loss, unless such time is extended in writing by the Aviation Managers or the Company in the form of a sworn statement by the insured setting forth the interest of khe insured and of all others in the property affected, any encumb antes thereon, the actual cash value thereof at time of loss, the amount, place, time and cause of such loss and the description and amounts of all other insurance covering such property. (d) cooperate with the Aviation Managers and the Company and upon the Aviation Managers' or the Company's request shall assist In the recovery of property insured hereunder either by means of replevin proceedings or otherwise in effecting settle- ment, securing evidence, obtaining attendance of witness and prosecuting suits to such an extent and in such a manner as is deemed desirable by the Aviation Managers or the Company. Any such act or acts of the insured, the Aviation Managers or the Company, or their agents including recovering, saving or pre- serving the property described herein shall be construed as having been done for the benefit of all concerned and without prejudice to the rights of either party and where loss or damages suffered constitute a claim under this policy, then all reasonable expenses thus Incurred shall also constitute a claim under this policy. Upon the Aviation Managers or the Company's request the insured shall exhibit the damaged property to the Aviation Managers or the Company and submit to examinations under oath by anyone designated by them, subscribe to same, and produce for their examination all pertinent records, log books, and sales invoices or certified copies if originals be lost, permitting copies thereof to be made, all at such reasonable times and places as the Aviation Managers or the Company shall designate. 12. LIMIT OF LIABILITY: NO ABANDONMENT. The limit of the Company's liability for direct physical loss of or direct physical damage to the aircraft shall be: (a) in case of total loss, the amount of insurance as stated in the Declarations less the applicable deductible; (b) in case of partial loss if repairs are made by a named insured, the total of the following items less the applicable deductible: (1) the named insured's costs for necessary material and parts of like kind and quality, (2) wages paid for labor at current straight time rates at the place of repair with no premium for overtime, plus 50% of such wages as an allowance for overhead and supervision, (3) cost of transportation; (c) if repairs are made by other than a named insured, the net cost to the named insured, excluding all premium charges for overtime, to repair the aircraft with material and parts of like kind and quality, and cost of transportation, less the applicable deductible; (d) whenever the Company pays a claim in an amount equal to the sum payable for a total loss, it shall at its option be entitled to all salvage value. There shall, however, be no abandonment of the aircraft to the Company without its consent; (e) the liability of the Company shall in no event, for any purpose hereunder, exceed the amount of insurance applicable to the aircraft less the applicable deductible. Norm 102 Rev. 3/75 is of 6) 13. COST OF TRANSPORTATION. The cost of transporting. new or damaged parts or of transporting the damaged aircraft to the place of repair and return to place of accident or home airport, whichever be the nearer, shall be limited to the least expensive method of reasonable transportation. In case of loss arising outside the Continental limits of the United States of America, or arising in Alaska or Hawaii, the limit of the Company's liability for salvaging the aircraft including the transportation thereof and /or the transportation of new or damaged parts to the place of repair and return to the place of accident or home airport, whichever be the nearer, shall be limited to the least expensive method of reasonable transporta- tion, but in no event shall exceed 15% of the claim otherwise payable. 14. APPRAISAL. If the named insured and the Company fail to agree as to the amount of loss, each shall, on the written demand of either, made within 60 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 15 days to agree upon such umpire, then, on the request of the named insured or the Company, such umpire shall be selected by a judge of a court of record in the county and state in which such appraisal is pending. The appraisers shall then appraise the loss, stating separately the actual cash value at the time of loss and the amount of loss, and failing to agree shall submit their differences to the umpire. An award in writing of any two shall determine the amount of loss. The named insured and the Company shall each pay his or its chosen appraiser and shall bear equally the other expenses of the appraisal and the umpire. The Company shall not be held to have waived any of its rights by any act relating to appraisal. 15. AUTOMATIC REINSTATEMENT. In the event of loss, whether or not covered by this policy, the amount of insurance in respect to any aircraft shall be reduced as of the time and date of loss by the amount of such loss and such reduced value shall continue until repairs are commenced when the amount of insurance shall automatically be increased by the value of the completed repairs until the original amount of insurance is fully reinstated or the policy has expired. 16. PAYMENT FOR LOSS: ACTION AGAINST COMPANY. Payment for loss shall not be required nor shall any suit or action on this policy for recovery of any loss or claim be sustainable in a court of law or equity unless, as a condition precedent thereto, the named insured shall have fully complied with all the terms of this policy, nor until 60 days after proof of loss is filed and the amount of loss is determined as provided in this policy nor at all unless commenced within 12 months after the physical happening of the occurrence which gave rise to the loss or claim. 17. RIGHTS AGAINST THIRD PARTIES. The Hull Coverage afforded under this policy shall not inure directly or indirectly to the benefit of any third party. Any act or agreement by the named insured whereby any right of the named insured to recover the full value of, or amount of damage to, any property lost or damaged and insured hereunder, from any third party liable therefor, is released, impaired or lost, shall relieve the Company from any liability under this policy for or on account of any such loss or damage, but the Company's right to retain or recover the premium shall not be affected. APPLICABLE TO ALL COVERAGES: 18. ASSISTANCE AND COOPERATION OF THE INSURED. The insured shall cooperate with the Aviation Managers and the Company and, upon their request, shall attend hearings and trials and shall assist in effecting settlements, securing and giving evidence, obtaining the attendance of witnesses and in the conduct of suits. The insured shall not, except at his own cost, make any payment, assume any obligation or incur any expense other than for such immediate medical and surgical relief to others as shall be imperative at the time of an occurrence or as provided under Condition 11, subparagraph (a). 19. ACTION AGAINST THE INSURED. The Aviation Managers shall have the power to institute and maintain suits in its own name, or the name of the Company, against the named insured for non - payment of premium, or for breach of any other obligation arising from or by reason of this insurance, and any judgment so obtained or release or receipt by the Aviation Managers or the Company shall be binding upon the Aviation Managers and the Company. 20. INSPECTION AND AUDIT. Any duly authorized represen- tative of the Aviation Managers or the Company shall be permitted to inspect the aircraft, all applicable log books and aircraft records, and to examine the insured's books and records, relating thereto at any time during the policy period and within one year after the final termination of this policy or until final settlement of all claims hereunder, whichever is later. 21. SUBROGATION. Except in respect to Coverage E, if the Company becomes liable for any payment under this policy in respect of loss, damage or liability the Company shall be subrogated, to the extent of such payment, to all the rights and remedies of the insured against any party in respect of such loss, damage or liability and shall be entitled at their own expense to sue in the name of the insured. The insured shall give to the Company all such assistance in his power as the Company may require to secure their rights and remedies, and at the Company's request, shall execute all documents necessary to enable the Company effectively to bring suit in the name of the insured including the execution and delivery of the customary form of loan receipt. It is further agreed that such action by the Company need not include the applicable deductible, except when requested by the insured in writing. The insured shall do nothing to prejudice such rights. 22. OTHER INSURANCE. Except with respect to insurance specifically purchased by the named insured to apply in excess of this policy, if there is other insurance, in the insured's name or otherwise, against loss, liability or expense covered by this policy, the Company shall not be liable under this policy for a greater proportion of such loss, liability or expense than the applicable limit of the Company's liability as stated in the Declarations of this policy, bears to the total applicable limit of liability of all valid and collectible insurance against such loss, liability or expense, provided however, that with respect to Special Pro- visions II & III, of this policy, this insurance shall be excess insurance over any other valid and collectible insurance available to the insured, either as an insured under a policy applicable with respect to the aircraft or otherwise and, if such other insurance available to the insured shall have been written through the Aviation Managers, the limit of the Company's liability applicable Form 102 R,eJ. 3/75 (6 of 6) to such loss under this policy shall be reduced by the applicable limit of liability under such other available insurance. 23. CHANGES. Notice to any agent or knowledge possessed by any agent or by any other person shall not effect a waiver or a change in any part of this policy or estop the Company from asserting any right under the terms of this policy; nor shall the terms of this policy be waived or changed, except by endorse- ment issued to form a part hereof signed by the Aviation Managers. 24. ASSIGNMENT. Assignment of interest under this policy shall not bind the Company until its consent is endorsed hereon by the Aviation Managers; if, however, the named insured shall die within the policy period, this policy, unless canceled, shall, provided written notice be given the Aviation Managers within 60 days, after the date of such death, apply to his legal representa- tives as the named insured. 25. CANCELLATION. This policy may be canceled by the named insured by surrender thereof to or by mailing to the Aviation Managers written notice stating when thereafter the cancellation shall be effective. This policy may be canceled by the Company or the Aviation Managers by mailing to the named insured at the address shown in this policy written notice stating when not less than 10 days thereafter such cancellation shall be effective. The mailing of notice as aforesaid shall be sufficient proof of notice. The time of the surrender or the effective date and hour of cancellation stated in the notice shall become the end of the policy period. Delivery of such written notice either by the named insured, the Company or the Aviation Managers shall be equivalent to mailing. If the named insured cancels, earned premium shall be computed in accordance with the customary short rate table and procedure. If the Company or the Aviation Managers cancel, earned premium shall be computed pro rata. Premium adjustment may be made either at the time cancellation is effected or as soon as practicable after cancellation becomes effective, but payment or tender of unearned premium is not a condition of cancellation. The Company shall not be liable for any return premium in respect to an aircraft on which a total loss has been paid. 26. FRAUD OR MISREPRESENTATION. This policy shall be void if the named insured has concealed or misrepresented any material fact or circumstance concerning this insurance or the subject thereof or in case of any fraud, attempted fraud or false swearing by the named insured touching any matter relating to this insurance or the subject thereof, whether before or after a loss. 27. DECLARATIONS. By acceptance of this policy the named insured affirms that the statements in the Declarations are his agreements and representations and the named insured acknowl- edges that this policy is issued in reliance upon the truth of such representations and that this policy embodies all agreements existing between himself and the Aviation Managers, the Com- pany, or any of their agents relating to this insurance. CERTIFICATE OF INSURANCE Date .......March 12r........ ..I .................. 19�..... THIS IS TO CERTIFY that the Insured set forth below is at this date insured with the Company(ies) as indicated under Policy(ies) described in the following schedule. DESCRIPTIVE SCHEDULE Insured: City of Newport Beach Address of Insured: 3p0 NeW ort gpuleV rd New ort Beach Ca) iforni8 92663 .S.A. 1ly,CludinQ A�asfCa), anada and'1IQxicq pcludim Lev the Locations Covered: ater f i is not rater t an twenty- >_ve 2� nautiga4 miles Aircraft: rom the Nearest l n�. Hughes 300C, N9627F and Hughes 300C, N58327 This certificate is issued at the request of ..........Armed Forces Reserve Center ..................................................................................... ............................... Commander Armed Forces Reserve Center ........................................................................................... ............................... whose address is ...................................................... Los Alamitos .......................................................... t California 90720 ........................................................ ............................... Attention: C A L A Av -0P ........................................................................................................................................................................................................... ............................... Whom we agree, if possible to notify Ten days before date of Cancellation, if policy should be cancelled, but the Company (ies) shall not be liable in any way for failure to give such notice. This certificate of insurance ncither affirmatively nor negatively amends, alters or extends the coverage afforded by Policy H -2 -5311 issued by Puritan Insurance Company ADDITIONAL AGREEMENTS ❑ Southern Marine & Aviation Underwriters, Inc. ® Southern Marine & Aviation, Inc. By -... EHJ /ED /mh Form 502. 1/71 Aviation Managers Authorized Representative Company Policy No. Expiration Date Limits of Liability Aircraft Liability Each Person $ Bodily Injury Each Occurrence $ Property Domoge Each Occurrence b Passenger Each Person I Each Occurrence S Single Limit incl. Passenger Puritan Ins. Co. H -2 -5311 4/1/81 Each Occurrence $510001000.i Single Limitexcl. Passenger Each Occurrence b Airport Liability Pass nger Legal Liabi ity limited to $500,000.0 each seat, Each Person E Bodily Injury Each Occurrence $ Property Damage Each Accident 5 Single Limit Each Accident $ ❑ Hull - Ground only Amount of Insurance ❑ Hull - GroundBFlight Workmen's Statutory Compensation This certificate is issued at the request of ..........Armed Forces Reserve Center ..................................................................................... ............................... Commander Armed Forces Reserve Center ........................................................................................... ............................... whose address is ...................................................... Los Alamitos .......................................................... t California 90720 ........................................................ ............................... Attention: C A L A Av -0P ........................................................................................................................................................................................................... ............................... Whom we agree, if possible to notify Ten days before date of Cancellation, if policy should be cancelled, but the Company (ies) shall not be liable in any way for failure to give such notice. This certificate of insurance ncither affirmatively nor negatively amends, alters or extends the coverage afforded by Policy H -2 -5311 issued by Puritan Insurance Company ADDITIONAL AGREEMENTS ❑ Southern Marine & Aviation Underwriters, Inc. ® Southern Marine & Aviation, Inc. By -... EHJ /ED /mh Form 502. 1/71 Aviation Managers Authorized Representative C SOUTHERN MARINE & AVIATION HOME OFFICE 610 POYDRAS ST., 1504) 524 -4131 NEW ORLEANS 70130 BRANCH OFFICES 3200 Wilshire Boulevard 1770 Saint James Place (213) 385 -8436 (713) 627.9720 Los Angeles, California 90010 Houston, Texas 77027 10 Corporate Square Office Park 305 Park Tower Bldg., 5200 S. Yale (404)321.1660 (918) 664 -0101 Atlanta, Georgia 30329 Tulsa, Oklahoma 74135 TO: SUBJECT: MILUM AND ASSOCIATES, IN 3720 Campus Drive WW Newport Beach, California 92660 Telephone (714) 549.9952 City o6 Newport Beach 3300 Newport BoutevoAd Newpoht BEach, CaU4onn,i.a 92660 Attention: Mn. B.i P2 Brown Re: He2ieopteA In6wLance Pun,Ltan In�suAance Co. Policy No. H -2 -4214 DATE: Juiy 2, 1979 1 have enc2o6ed heAew%th the o4i.g.inat o6 endorsement No. 10 which 4houtd be attached to the hePieopten .insuAance potiey bon the City. Thib endouement eoAAect6 .item k o6 the dectaAatiom to head the totae eeat3 .incZuding cAew to 2. A copy o6 this, endox6ement .%6 being 6oAmAded to Vi&g' rn bon hid neeand6 a.6 wett. S.incenety, 9 P Rap ,&& - \O MILUM E OCIATES, `/t/L QV n F C� � N�1f'PpaT BOF GINNY MC IC CC: Mn. V.Agit Howett It is hereby understood and agreed that the Total Seats Including-Crew in ITEM 8 of the Declarations are corrected to read as follows: 2 Nothing herein contained shall vary, alter, waive or extend any of the terms, provisions, representations, conditions or agreements of the policy other than as above stated. This endorsement becomes effective May 15, 1979 to be attached to and hereby made a part of Policy No. N -2 -42111 issued by Puritan Tnsurance Company to City of Neromnrt. Reach This endorsement shall not be valid unless approved by the Aviation Managers. Endorsement No. #10 ❑ Southern Marine & Aviation Underwrite Inc. Date of Issue May 21. 1979 Southern rin c I & Aviation nc EffJ /dri gy �: Form 102•L 1/72 .� i SOUTHERN MARINE & AVIATION HOME OFFICE 610 POYDRAS ST., (504] 524 -4131 NEW ORLEANS 70130 BRANCH OFFICES 3200 Wilshire Boulevard 1770 Saint James Place (213) 385 -8436 (713) 627.9720 Los Angeles, California 90010 Houston, Texas 77027 10 Corporate Square Office Park 305 Park Tower Bldg., 5200 S. Yale (404) 321 -1660 (918) 664 -0101 Atlanta, Georgia 30329 Tulsa, Oklahoma 74135 �rinwrame /brokers 3720 CAMPUS DRIVE / NEWPORT BEACH, CALIFORNIA 92660 (714) 5499952 NOTE: Attach endorsements beneath: Declaration Page DECLARATIONS PART 1 Policy Number H 2-'421-4 ITEM 1. City of Newport Beach This page with the Policy Cover - Form 100 and the Policy Provisions -Part 2, Form 102, completes this numbered AVIATION HULL and LIABILITY POLICY ISSUED BY PURITAN INSURANCE COMPANY Name of Insured' - - Previ - •.- oilg��'AplicY No: -. ITEM 2. 9100 Newport Boulevard ITEM 5. Lo% -ReJ blet Any loss under Coverages F, G, H and I is payable, to the P. O. Address Named Insured and None Newport Beach, California 92663 ITEM 3. From To May 1 1 980 as the letters interest may appear. Policy Period: 12:0"1 .M., Standard time at the address in Item 2. ITEM 6. Aircraft Regularly Hangared at ❑ Tied Down at ® Airport and ITEM 4. Business of Named Insured Muni C iUality Location- Orange County AirDOrt The insurance afforded is only with respect to such and so many of the tollow n�'cifvarages as are indicated by specific premium charge or charges. The limit of the company's liability against each such coverage shall be as stated herein, subject to all of the terms of this policy having reference thereto. If more than one aircraft is insured hereunder the terms of this policy shall apply separately to each. ITEM 7. Liability Coverages LIMITS OF LIABILITY LIABILITY PREMIUMS HULL COVERAGE IDENTIFIED F. All Risks; Ground & Flight. G. All Risks; Ground only - - excluding taxiing. H. All Risks; Ground only - o including taxiing. x m I. As endorsed hereon. c o. c E - o U Each Person Each Occurrence A. Bodily Injury - excluding Passengers $ $ $ Nil B. Property Damage - xxxxx Hughes 300C Nil C. Passenger Liability Lye. 190 Nil Nil D. Single Limit- el g udin Passengers xxxxx 5,000,000.00* 2,500.00 E. Medical Payments- eluding Crew - it _ ion Endorseme t LIAB. TOTAL $ ITEM 8. DESCRIPTION OF AIRCRAFT AND HULL COVERAGES HEREUNDER: THE INSURED AFFIRMS THAT EACH OF THE AIRCRAFT DESCRIBED IN THIS POLICY IS LICENSED UNDER A "STANDARb" AIRWORTHINESS CERTIFICATE AS DEFINED BY THE F.A.A. F.A.A. Cert. No. Make and Model Year Built Type Engine &H.P. TOTAL SEATS INCL CREW Amount of Insurance Hull Cover- age HULL PREMIUMS DEDUCTIBLES Not In Motion In Motion N 62 F Hughes 300C R' Lye. 190 Nil $ Nil Nil $ Nil $ -- $ -- `Type A- Amphibian L -Land SSeaplane HULL TOTAL $ Nil POLICY PREMIUM $ 2,500.00 ITEM 9. The aircraft will be used only for the purposes indicated by "X" below (see Definitions) Executive Pleasure and Industrial Instruction Charter Transport' X Business" I I Aid" and /or Rental" Commercial" "Commercial" ® Tnoludirrn notice work and the instruction of Richard Lewis Miller ITEM 10. PILOTS -THE COVERAGE AFFORDED BY THIS POLICY SHALL NOT APPLY UNLESS THE AIRCRAFT IS OPERATED IN FLIGHT BY THE PILOTS ENDORSED HEREON AND THEN ONLY PROVIDED SAID PILOTS ARE QUALIFIED IN ACCORDANCE WITH THE TERMS OF THE ENDORSEMENTS). ITEM 11. (a) THE NAMED INSURED IS THE SOLE OWNER OF THE AIRCRAFT AND THE AIRCRAFT IS NOT SUBJECT TO ANY ENCUMBRANCE OTHER THAN.AS INDICATED IN ITEM 5. (b) DURING THE PAST YEAR NO INSURER HAS CANCELED OR DECLINED TO RENEW ANY AIRCRAFT INSURANCE ISSUED TO THE NAMED INSURED, EXCEPTION, IF ANY_ ABSENCE OF ANY ENTRY MEANS NO EXCEPTION. Producer fdlum/Garvey Insurance TS, Inc. SOUTHERN MARINE & AVIATION UNDERWRITERS, C. 7R❑-11 3720 rprnpug Drive SOUTHERN MARINE & AVIATION, INC. 1.J Nevoort,Wach. California J2660 n Managers Countersignfldti Approv Authorized Rybr entative - ' f/ GINAL .3�rsn, iQj /71 I 1 r OT QUALIFICATION ENDORSl�' When in flight the aircraft shall be operated only by the �i,rnaier' a -':ups and 'then ot11y if 'the said pilot(s) is properly certificated afld rated by the F_1A and bolds the valid certificates and ratings and has the minimum flying experience, all as indicated below, and in addition holds a -valid and current medical certificate: 1. Charles, Olmstead, Commercial Pilot's License, rotorwing rating,, having logged 3,670 hours in rotorcraft. 2. Tim Grundeman, Commercial Pilot's License, rotorwing rating, having logged 5,200 hours in rotorcraft. 3• Harry Williams, Commercial Pilot's License, rotorwing rating, having logged 3,145 hours in rotorcraft. 4. Bruce Foster, Commercial Pilot's License, rotorwing rating, having logged 3,500 hours in rotorcraft. 5. Douglas Morton Commercial Pilot's License; rotorwing rating, having logged 452 hours in rotorcraft. 6. Richard Lewis Miller, Private Pilot's License, who is at all times in fill compliance with the Rotorcraft Supervision Endorsement attached hereto. "Comparable or more complex type shall be in reference to each particular aircraft insured herein and shall be. defined as aircraft with not less than 50c- of the total horsepower, the same number of or more engines, and a retractable landing gear if the insured aircraft is so equipped. Nothing herein contained shall vary, alter, waive or extend any of the terms, li'OYisial5, representations, condilio: s ,r aweements of the policy other than as above stated. - This endorsement becomes effective Mav to be attached to and hereby made a par: of Policy Nc,, u_2- 4Pi4___ issued by Puritan Insurance Company„ __.,_.,.. -___ to ___ Qyty of Newbort Beach This endorsement shall not be valid unless approved by the Aviation Managers - Endorsement No. #j__ Date of Issue May 10, 1979 EHJ /ED /dri Form 160X 51171 EI Southern Marine_ &- AUiPon Undep.m iters;' hu11 Lx. Southern Malin & Aviakon, Inc.,� ORIGINAL By 1 ROTORCRAFT SUPERVISION ENDORSEMENT It is specifically understood and agreed that this policy does not apply and no coverage is afforded to any Insured while any rotorcraft insured under this policy is being operated by any pilot who does not hold a rotorcraft- helicopter rating unless said pilot is accompanied at all time by a Flight Instructor properly certificated and rated by the FAA and holding a rotorcraft - helicopter rating, or said Instructor. shall have sepcifically approved each flight or attempted flight by said pilot prior to lift -off. This exclusion shall not apply after said pilot has re- ceived rotorcraft- helicopter rating. Nothing herein contained shall vary, alter, waive or extend any of the terms, provisions, representations, conditions or agreements of the policy other than as above stated. This endorsement becomes effective May 15, 1979 to be attached to and hereby made a part of Policy No, H -2 -4214 issued b)Puritan Insurance Comuany to City of Newport Beach This endorsement shall not be valid unless approved by the Aviation Managers. ^ Endorsement No. #2 Southern M�!arine & Aviation nder%Nriters, Inc. May 10 1979 ® Southe n;IPiarine & AviStio. ,Inc. Date of Issue EHJ /ED /dri Form 102•L 1/71 - � LIMIT OF LIABILITY ENDORSEMENT PASSENGER LIABILITY In consideration of the premium charged for Coverage D it is agreed that the Company's liability under Coverage D for all claims arising out of Passenger Bodily Injury sustained by any one person shall not exceed $ 500,000.00 and subject to that limit for each person the Company's liability for all claims arising out of Passenger Bodily Injury in respect of any one occurrence is that limit for each person multiplied by the number of passenger seats and in no event is it to exceed $ 500,000,00 any one occurrence. Nothing herein contained shall vary, alter, waive or extend any of the terms, provisions, representations, conditions or agreements of the policy other than as above stated. This endorsement becomes effective Ma-Y 15, 1979 to be attached to and hereby made a part of Policy No. H_p_)p1)1. issued by P tan Tnenran (`mmpanar to ('i tw of Nat i nrt Raaoh This endorsement shall not be valid unless approved by the Aviation Mongers. Endorsement No. ##3 ❑ Southern Marine & Aviation Undefwriters, Inc. ® Sou Marine & Aviation, Inc.; Date of Issue MnaL 10, 1 979 EHJ /ED /dri Form 133 1/71 L' *ADDITIONAL INSURED ENDORVENT (Liabilities Only) In consideration of an additional premium of $ Tnaluded and with respect to Coverage(s� D it is agreed to include City of Garden Grove, California as an additional insured but only with respect to the operations of the aircraft insured hereunder by the named insured. This agreement shall not operate to prejudice the Company's rights of recourse against said additional insured as manufacturers, repairers, suppliers or servicing agents where such rights of recourse would have existed had this endorsement not been effected under this policy. It is further understood and agreed that notwithstanding the inclusion herein of more than one insured, the total liability of the company in respect of any or all insureds shall not exceed the limit(s) of liability stated in this policy. Subject otherwise to all the terms, conditions, exclusions and limitations of the policy. Nothing herein contained shall vary, alter, waive or extend any of the terms, provisions, representations, conditions or agreements of the policy other than as above stated. This endorsement becomes effective May 15. 1979 to be attached to and hereby made a part of Policy No. H -2 -4214 issued by Puritan Insurance Company to City of Newport Beach This endorsement shall not be valid unless approved by the Aviation Managers. Endorsement No. #4 El Southern Marine & Aviation Undervrri rs, Inc. �] Southern Marine & Aviatl!pn "Inc, Date of Issue UQ5, 10x1979 +� EHJ /ED /dri Form 130 4/72 0 0 It is hereby understood and agreed that the Passenger Legal Liability Coverage is deleted whilst the aircraft is being used for ins- truction of Richard Lewis Miller. Nothing herein contained shall vary, alter, waive or extend any of the terms, provisions, representations, conditions or agreements of the policy other than as above stated. This endorsement becomes effective May 15, 1979 to be attached to and hereby made a part of Policy No. H -2 -4211 issued by Puritan Insurance Company to City of Newport Beach This endorsement shall not be valid unless approved by the Aviation Managers. Endorsement No. Date of Issue May 10, 1979 EHJ /ED /dri Form 102 -L 1/71 1 ❑ Southern Marine & Aviatt/yon Underwriters, Inc. SOOT, E&n Marne & Avitrrion, IT' 0 NON -OWNED AIRCRAFT LIABILITY ENDORSEMENT In consideration of an additional premium of $ Included , it is agreed that such insurance as is . afforded by this policy is extended to include non -owned fixed wing aircraft used by the named insured. A. PROVIDING this extension of coverage 1. is subject to all the terms and conditions including the Pilot Qualifications of the policy EXCEPT that the Special Provisions titled "Automatic Insurance for Newly Acquired Aircraft" and "Use of Other Aircraft Limited" are deleted in their entirety, and any insurance otherwise provided under the definition of "Insured" shall not be applicable. 2. only applies to aircraft not owned in whole or in part by, or leased under a long term lease or lease- option purchase agreement by the named insured or any member of the named insured's household, or if the named insured be a corporation or partner- ship, by any executive officer or partner thereof, or any member of the family of such executive officer or partner. 3. shall not apply to liability arising out of any product manufactured, sold, handled or distributed by the named insured. 4. shall not apply to any aircraft having a seating capacity, including crew, in excess of 2 5, shall not apply to liability for loss of or damage to the aircraft or any consequential loss arising therefrom. B. This insurance shall be excess insurance over any other valid and collectible insurance available to the named insured, either as an insured under a policy applicable with respect to the aircraft or otherwise, against a loss covered thereunder. Nothing herein contained shall vary, alter, waive or extend any of the terms, provisions, representations, conditions or agreements of the policy other than as above stated. This endorsement becomes effective May 15, 1979 to be attached to and hereby made a part of Policy No. H -2 -1+27 4 issued by P Jt,n r r y to iitsr nf 79 C, t R nth This endorsement shall not be valid unless approved by the Aviation Managers, Endorsement No #6 Dote of Issue mn4 in 1979 EHJ /ED /dri Form 116 4172 Southern Marine & Aviation Unde(w iters, Inc. ® Southern�Marine & Aviat�n, Inc. � 1 MEXICO ENDORSEMENT Go WARNING Unless you have automobile or aircraft insurance written by a Mexican insurance company, you may spend many hours or days in jail, if you have an accident in Mexico. Insurance coverage should be secured from a company licensed under the laws of Mexico to write such insurance in order to avoid complications and some other penalties possible under the laws of Mexico, including the possible impound- ment of your automobile oraircraft. This endorsement is issued only with respect to the liability portion of the coverage afforded by the policy in compliance with the law of California as the policy to which it is attached applied to occurrences and loss happening during the policy period and within Mexico. Nothing herein contained shall vary, alter, waive or extend any of the terms, provisions, representations, conditions or agreements of the policy other than as above stated. This endorsement becomes effective May 15., 1979 to be attached to and hereby made a part of Policy No. 2_42111 issued by Puritan Tnan (mm�nny to =5' of Nelrport Beanh This endorsement shall not be valid unless approved by the Aviation Managers Endorsement No. Date of Issue May 10, 1979 EHJ /ED /dri Form 145 1/71 SOUTHERN MARINE & AVIATION, INC.1f ❑:. SOUTHERN MARINE & AVIATIO UNDI(RWRI.TERS, INC. ❑ By IN CONSIDERATION OF THE PREMIUM CHARGED IT IS UNDERSTOOD AND AGREED THAT: 1, SPECIAL PROVISIONS, paragraph IV POLICY PERIOD AND TERRITORY is changed to read as follows: IV POLICY PERIOD AND TERRITORY. This policy applies only to occurrences and loss happening during the policy period and within the United States of America (excluding Alaska), Canada and Mexico or while the aircraft is being transported between ports thereof. Nothing herein contained shall vary, alter, waive or extend any of the terms, provisions, representations, conditions or agreements of the policy other than as above stated. This endorsement becomes effective May 15, 1979 to be attached to and hereby node a part of Policy No. H -2 -421 issued by puritan Insurance Company to City of Newport Beach This endorsement shall not be valid unless approved by the Aviation Managers. Endorsement No. Date of Issue May LgT 1 9�9 EHJ /ED /dri Form 137 2/74 ❑ Southern -Mirrhe & Aviation Underwriters, Inc. Q Southern Marine & Aviati6n, Inc. Ln 0 IT IS HEREBY UNDERSTOOD AND AGREED THAT: 1. This insurance shall be excess over any other valid and collectible insurance available to the City of Garden Grove, California. 2. The coverage under this policy shall be applied first to claims against the City of Newport Beach and the remainder to claims against others. 3• The Geographical Limits in Endorsement #B are amended to include the following: Over water flights not greater than twenty five (25) nautical miles from the nearest land. 4. The definition of "Pleasure and Business" in the Policy Provisions Part 2 is amended to include the following: The Named Insured may receive reim- bursement for direct operating ex- penses, or enter into reciprocal agreements with other municipalities excluding any profit. 5. The ten (10) days notice of cancellation referred to in Condition 25 of the Policy Provisions Part 2 is changed to read sixty (60) days, Nothing herein contained shall vary, alter, waive or extend any of the terms, provisions, representations, conditions or agreements of the policy other than as above stated. This endorsement becomes effective May 15 1979 to be attached to and hereby made a part of Policy No. H -2 -4214 issued by Puritan Insurance Company to City of Newport Beach This endorsement shall not be valid unless approved by the Aviation Managers. Endorsement No Date of Issue May 10, 1979 EHJ /ED /dri Form 102•L 1/71 ❑ Southern Marine & Aviation Underwri ers, Inc. South�n Marline & Aviij "� an, Inc. C v' so so POLICY PROVISIONS PART 2 The Company agrees with the insured, both named in the Declarations made a part hereof, in consideration of the payment of the premium and in reliance upon the statements in the Declarations and subject to the Limits of Liability, Exclusions, Special Provisions and Conditions and other terms of this policy to afford those of the following coverages as specified in the Declarations: INSURING AGREEMENTS COVERAGE A — Bodily Injury Liability, Excluding Passengers. To pay on behalf of the insured all sums which the insured shall become legally obligated to pay as damages, including damages for care and loss of services, because of bodily injury, sickness or disease and, if arising out of the foregoing, mental anguish, including death resulting therefrom, sustained by any person or persons other than passengers, caused by an occurrence and arising out of the ownership, maintenance or use of the aircraft. COVERAGE B — Property Damage Liability. To pay on behalf of the insured all sums which the insured shall become legally obligated to pay as damages because of injury to or destruction of tangible property, including the loss of use thereof, caused by an occurrence and arising out of the ownership, maintenance or use of the aircraft. COVERAGE C — Passenger Bodily Injury Liability. To pay on behalf of the insured all sums which the insured shall become legally obligated to pay as damages, because of bodily injury, sickness or disease including damages for care and loss of services, because of bodily injury, sickness or disease and, if arising out of the foregoing, mental anguish, including death resulting there- from, sustained by any passenger or passengers caused by an occurrence and arising out of the ownership, maintenance or use of the aircraft. COVERAGE D — Single Limit — Bodily Injury (including or excluding Passengers) and Property Damage Liability. To pay on behalf of the insured all sums which the insured shall become legally obligated to pay as damages, including damages for care and loss of services, because of bodily injury, sickness or disease and, if arising out of the foregoing, mental anguish, including death resulting therefrom, sustained by any person excluding passengers, unless the Declarations describe Coverage D as "including passengers" and as damages because of injury to or destruction of tangible property, including loss of use thereof, caused by an occurrence and arising out of the ownership, maintenance or use of the aircraft. COVERAGE E — Medical Payments. To pay all reasonable expenses incurred within one year from the date of the occurrence for necessary medical, surgical, x ray and dental services including prosthetic devices, and the necessary ambu- lance, hospital, professional nursing and funeral services to or for each person, and each member of the crew if the Declarations describe Coverage E as "including Crew ", who sustains bodily injury, caused by an occurrence, while in or on, entering or alighting from the aircraft providing the said aircraft is being used with the permission of the named insured. COVERAGE F — All Risks, Ground and Flight. To pay for any direct physical loss of or direct physical damage to the aircraft, including disappearance. COVERAGE G — All Risks, Ground only excluding Taxiing. To pay for any direct physical loss of or direct physical damage to the aircraft while not in flight or taxiing. COVERAGE H — All Risks, Ground only including Taxiing. To pay for any direct physical loss of or direct physical damage to the aircraft while not in flight. COVERAGE I — As endorsed hereon. SPECIAL PROVISIONS (APPLICABLE ONLY TO THE COVERAGES INDICATED) I. DEFENSE, SETTLEMENT, SUPPLEMENTARY PAY- MENTS. With respect to the insurance afforded under Coverages A, B, C and D, the Company shall: (a) defend any suit against the insured alleging such bodily injL;°y or property damage and seeking damages which are payable under the terms of this policy even if any of the allegations of the suit are groundless, false or fraudulent; but the Company shall have the right to make such investigation, negotiation and settlement of any claim or suit as it deems expedient; (b) pay all premiums on bonds to release attachments for an amount not in excess of the applicable limit of liability of this policy, all premiums on appeal bonds required in any such defended suit, but without any obligation to apply for or furnish such bonds, all costs taxed against the insured in any such suit, all expenses incurred by the Company, all interest accruing after entry of judgment until the Company has paid, tendered or deposited in court such part of such judgment as does not exceed the limit of the Company's liability thereon; (c) pay expenses incurred by the insured, in the event of bodily injury, for such immediate medical and surgical relief to others as shall be imperative at the time of the occurrence; (d) reimburse the insured for all reasonable expenses (other than loss of earnings, or wages and salaries of employees of the insured) incurred at the Company's request. The Company agrees to pay the amounts incurred under this Special Provision except settlements of claims and suits, in addition to the applicable limit of liability of this policy. Form 102 Rev. 3/75 (1 of 6) II. AUTOMATIC INSURANCE FOR NEWLY ACQUIRED AIR- CRAFT. (Coverages A, B, C, D and E) This provision is not applicable if the approved uses under this policy include "Instruction and /or Rental ", "Charter Commercial ", or "Com- mercial". If the named insured who is the owner of the aircraft described in the Declarations shall acquire ownership of another aircraft of the fixed wing land plane type having a "Standard" airworthiness certificate issued by the FAA and shall so notify the Aviation Managers within 10 days following the date of its delivery to the named insured, such insurance as is afforded by this policy applies also to such other aircraft as of such delivery date provided; (a) It replaces any aircraft described in this policy, but only to the extent the insurance is applicable to the replaced aircraft, or; (b) It is an additional aircraft and the Company insures all aircraft owned by the named insured at such delivery date, but only to the extent the insurance is applicable to all such previously owned aircraft and only to the extent of the lowest limits of liability provided for each coverage and in the event a particular coverage is not provided for any other owned aircraft then said coverage shall not apply to the newly acquired aircraft. This Special Provision does not apply except during the policy period, but if such delivery date is prior to the effective date of this policy, the insurance applies as of such effective date. Nor does this Special Provision apply when an aircraft replaces a. replacement aircraft unless each replacement has been reported in the time and manner prescribed. The insurance on the replaced aircraft terminates upon delivery of the replacement aircraft. The named insured shall pay any additional premium required because of the application of the insurance to such other aircraft. III. USE OF OTHER AIRCRAFT —LIMITED. (Coverages A, B, C, D and E) This provision is not applicable if the approved uses under this policy include "Instruction and /or Rental ", "Charter Commercial" or "Commercial ". With respect to the named insured if one individual, and spouse of such individual if resident of the same household, either or both of whom own the aircraft described in the policy; (a) Such insurance as is afforded under Coverages A, B, C, D and E of this policy is extended to apply with respect to the use, by or on behalf of such named insured or spouse, of any fixed -wing, land plane having a "Standard" airworthiness certifi. cate issued by the FAA and provided it is not owned in full or in part by, not registered in the name of, not hired as a part of frequent use of hired aircraft or not furnished for regular use to such named insured or any member of the named insured's household or the insured against whom claim is made or suit is brought. (b) The insurance provided by this Special Provision shall apply only to such named insured and spouse and if either be a minor then the guardian of such minor. (c) The definition of "Insured" appearing under DEFINI- TIONS does not apply to this Special Provision and this Special Provision does not cover as an insured the owner of said other aircraft or any agent or employee of such owner. (d) The insurance provided by this Special Provision shall be excess over any other valid and collectible insurance available to the insured, either under a policy applicable with respect to the aircraft or otherwise, against a loss covered under this Special Provision. If such valid and collectible insurance shall have been written through the Aviation Managers, the applicable limit of liability under this policy shall be reduced by the applicable limit of liability under such other valid and collectible insurance. IV. POLICY PERIOD AND TERRITORY. This policy applies only to occurrences and loss happening during the policy period and within the United States of America, Canada or Mexico or while the aircraft is dismantled and being transported between ports thereof. EXCLUSIONS THIS POLICY DOES NOT APPLY AND NO COVERAGE IS AFFORDED: 1. To any insured who operates or permits the operation of the aircraft: (a) For any operation requiring a special permit or waiver from the FAA whether granted or not, or in violation of the operating limitations; (b) For any unlawful purpose, or any purpose or use including student instruction unless such uses are stated in the Declarations; (c) For any operation involving crop dusting, spraying, seeding, fertilizing, banner or glider towing, powerline or pipeline patrol, fish spotting, geological exploration or survey, any form of hunting or parachute jumping, unless such uses are expressly endorsed hereon. 2. To any insured while the aircraft is in flight: (a) If piloted by other than the pilot or pilots designated in the Declarations or endorsed hereon; (b) If piloted by a pilot not properly certificated, rated and qualified under the current applicable Federal Aviation Regula- tions for the operation involved whether said pilot is designated in the Declarations or endorsed hereon or not; (c) If its airworthiness certificate is not in full force and effect. 3. With respect to ionizing radiations or contamination by radioactivity; (a) To loss of, destruction of, or injury to any property whatsoever, or any loss or expense whatsoever resulting or arising therefrom; (b) To any legal liability of whatsoever nature caused or contributed to by or arising from any source thereof whatsoever. 4. To any liability assumed by the insured under any contract or agreement or to any loss or damage to the aircraft for which the insured has assumed the liability of others. 5. To any loss, damage or legal liability directly or indirectly occasioned by, happening through or in consequence of war, invasion, acts of foreign enemies, hostilities (whether war be declared or not), civil war, rebellion, revolution, insurrection, military or usurped power or confiscation or nationalization or requisition or destruction of or damage to property by or under the order of any government or public or local authority. 6. To any loss, or damage or legal liability due to any at6mic or nuclear fission and /or fusion, or other like reaction or radioactive force or matter. Forgi 102 Rev. 3/75 (2 of 6) UNDER COVERAGES A, B, C AND D (BODILY INJURY AND PROPERTY DAMAGE) 7. Noise and Pollution and Other Perils Exclusion Clause A. To claims directly or indirectly occasioned by, happen- ing through or in consequence of: (1) noise (whether audible to the human ear or not), vibration, sonic boom and any phenomena associated therewith, (2) pollution and contamination of any kind whatso- ever, (3) electrical and electromagnetic interference, (4) interference with the use of property; unless caused by or resulting in a crash, fire, explosion or collision or a recorded in- flight emergency causing abnormal aircraft oper d �. o rWith respect to any provision in the policy concerning any duty of the Company to investigate or defend claims, such provision shall not apply and the Company shall not be required to defend (1) claims excluded by Paragraph A or (2) a claim or claims covered by the policy when combined with any claims excluded by Paragraph A (referred to below as "Combined Claims "). C. In respect of any Combined Claims, the Company shall (subject to proof of loss and the limits of the policy) reimburse the insured for that portion of the following items which may be allocated to the claim or claims covered by the policy: (1) damages awarded against the insured and (2) defense fees and expenses incurred by the insured. D. Nothing herein shall override any radioactive contamina- tion or other exclusion clause attached to or forming part of this policy. UNDER COVERAGES A, C AND D (BODILY INJURY) 8. To bodily injury to, sickness, disease or death of any employee of the insured while engaged in the employment of the insured or to any obligation for which the insured or any company as his insuror may be held liable under any Workmen's Compensation, Occupational Disease, Disability Benefit, Unem- ployment Compensation, Employers Liability, United States Longshoremen's and Harbor Workers Compensation Act, The Jones Act, Federal Employers Liability Act, Defense Bases Act; or any similar act, plan or law, whether state, federal or foreign. 9. To bodily injury to, sickness, disease, damage or death of any person who is a named insured, and if the named insured is an individual or individuals, their spouse(s) or damage to the N respective estates, resulting from their bodily injury, sickness, disease, damage or death. UNDER COVERAGES B AND D (PROPERTY DAMAGE) 10. To injury to or destruction of property, including loss of use thereof, owned by, rented to, occupied or used by, or in the care, custody or control of, or transported by the insured. UNDER COVERAGES F, G, H AND I (HULL) 11. To loss or damage due to conversion, embezzlement or secretion by any person in possession of the aircraft under a bailment, lease, conditional sale, purchase agreement, mortgage or other encumbrance, nor for any loss or damage during or resulting therefrom; 00 12. To loss of use or depreciation however caused; 13. To robes, wearing apparel and other personal effects; 14. To loss or damage which is due and confined to wear and tear, deterioration, freezing, mechanical, structural, or electrical breakdown or failure, or to tires unless damaged by fire or stolen, unless any such loss or damage is the direct result of other physical damage covered by this policy; 15. To loss or damage to any aircraft equipped for ski or water landings and takeoffs unless said aircraft is described in the Declarations as a skiplane, seaplane or amphibian; 16. To any aircraft subject to any lien, conditional sale, mortgage or other encumbrance not specifically declared and described in this policy. DEFINITIONS "AVIATION MANAGERS" shall mean Southern Marine & Aviation Underwriters, Inc., or Southern Marine & Aviation, Inc. "EXECUTIVE TRANSPORT" corporate owned or leased aircraft used for the transportation of executives, employees, guests and customers, flown by professional pilots who are employed for this specific purpose only, but excluding all uses for which any compensation is received, is to be received, or was anticipated. "PLEASURE AND BUSINESS" personal, pleasure, family and business uses but excluding any use for which any compensation is received, is to be received, or was anticipated. "INDUSTRIAL AID" includes the uses enumerated in the definition of "Pleasure and Business" and also includes transpor- tation of executives, employees, guests and customers, but excluding any use for which any compensation is received, is to be received, or was anticipated. "COMPENSATION" shall mean any consideration exceeding, or greater than, the actual fuel cost and storage fees attributable to the particular flight involved. "SHARE EXPENSE FLIGHTS" shall be construed as "Pleasure and Business' uses provided that such sharing of expenses with the insured is limited to only the actual fuel cost and storage fees attributable to the particular flight involved. "INSTRUCTION AND /OR RENTAL" 'Pleasure and Business' uses and including the instruction of and /or rental to others for their "Executive Transport /Industrial Aid /Pleasure and Business' uses only, but excluding all other uses for which any compensa- tion is received, is to be received, or was anticipated. "CHARTER COMMERCIAL" 'Pleasure and Business' uses and the transporting of passengers or freight for compensation but excluding all other uses for which any compensation is received, is to be received or was anticipated. "COMMERCIAL" includes all uses enumerated in the definitions of 'Pleasure and Business', "Instruction and /or Rental" and "Charter Commercial ". "AIRCRAFT" shall mean the aircraft described herein, and shall include the engines, propellers, operation and navigation instru- ments and radio equipment usually attached to the aircraft, including component parts detached and not replaced by similar parts and tools therein which are standard for the make and type of aircraft. "PASSENGER" means any person or persons while in, or entering the aircraft for the purpose of riding or flying therein, or alighting therefrom during or following a flight or attempted flight therein. "FEDERAL AVIATION ADMINISTRATION" or "FAA" shall mean the duly constituted authority of the United States of America having jurisdiction over civil aviation. "OCCURRENCE" means an accident, or a continuous or repeated exposure to conditions, which results in injury and /or Form 102 Rev. 3/75 (3 of 6) damage during the policy period, provided the injury and /or damage is not expected or intended from the standpoint of the insured. All injury and /or damage arising out of such exposure to substantially the same general conditions shall be deemed to rise out of one occurrence. "ASSAULT AND BATTERY" shall be deemed an occurrence only if committed by or at the direction of the insured solely for the purpose of preventing dangerous interference with the operation of the aircraft or for the protection of the aircraft. "NAMED INSURED" means the individual, partnership, corpora- tion or other entity whose name is stated in Item 1 of the Declarations. "INSURED" the unqualified term "insured" wherever used in this policy with respect to Coverages A, B, C and D shall include not only the Named Insured, but also any person while using or riding in the aircraft and any person or organization legally responsible for its use, provided the actual use is with the expressed permission of the named insured. The above mentioned coverages with respect to any person, or organization shall not apply to: a) Any official or an employee of an insured with respect to bodily injury, sickness, disease, damage, or death of another official or employee of the same insured injured in the course of such employment in an occurrence arising out of the maintenance or use of the aircraft in the business of such insured; (b) Any person or organization, or any agent, or employee thereof (other than employees of the named insured while in the course and scope of such employment for the named insured) engaged in the manufacture or repair of aircraft, aircraft engines, aircraft parts or accessories, or in the operation of an aircraft electronic repair shop, airport, hangar, aircraft sales agency, airline, aircraft rental service, commercial flying service, air taxi or charter flying service, flying club or flying school with respect to any occurrence arising out of the manufacture or the operation thereof; (c) A student pilot or any person or organization renting or leasing the aircraft or anyone operating the aircraft with the actual or implied knowledge or consent of said student pilot, individual or organization renting or leasing the aircraft. "FLIGHT" shall mean the period from the time the aircraft moves forward in taking off or in attempting to take off until it has completed its landing and landing run after contact with the land or water. "DISAPPEARANCE" shall be deemed a loss under the flight provisions of this policy if the aircraft is missing and not reported for sixty days after commencing flight by the insured or his authorized agent. "TAXIING" shall mean while the aircraft is moving under its own power or momentum generated thereby other than while in flight. "FIRE" shall mean fire, lightning, explosion and self- ignition unless fire or explosion is caused directly or indirectly by collision of the aircraft with any object. "THEFT" shall mean theft, robbery or pilferage including damage to the aircraft done by thieves. "MOORING" shall mean while, on water, a water - alighting aircraft is anchored, or moored, or during launching onto or hauling up therefrom (except under its own power or momen- tum). "IN MOTION" shall mean while the aircraft is taxiing or in flight. CONDITIONS APPLICABLE TO COVERAGES A, B, C AND D (BODILY INJURY AND PROPERTY DAMAGE): 1. NOTICE OF OCCURRENCE. When an occurrence takes place written notice shall be given by or on behalf of the insured to the Aviation Managers at their New Orleans, Louisiana office whose address appears herein as soon as practicable. Such notice shall contain particulars sufficient to identify the insured and also reasonably obtainable information respecting the time, place and circumstances of the occurrence, the names and addresses of the injured and of available witnesses. 2. NOTICE OF CLAIM OR SUIT. If claim is made or suit is brought against the insured, the insured shall immediately forward to the Aviation Managers at their New Orleans, Louisiana office whose address appears herein, every demand, notice, summons or other process received by him or his representative. 3. LIMITS OF LIABILITY. The limit of liability stated in the Declarations for Coverages A and C as applicable to "each person" is the limit of the Company's liability for all damages, including damages for care and loss of services, arising out of bodily injury, sickness or disease and, if arising out of the foregoing, mental anguish including death resulting therefrom, sustained by one person as the result of any one occurrence; the limit of such liability stated in the Declarations as applicable to "each occurrence" is, subject to the above provision respecting each person, the total limit of the Company's liability for all damages, including damages for care and loss of services, arising out of bodily injury, sickness or disease and, if arising out of the foregoing, mental anguish including death resulting therefrom, sustained by two or more persons as the result of any one occurrence. The limit of liability stated in the Declarations for Coverage B as applicable to "each occurrence" is the total limit of the Company's liability for all damages arising out of injury to or destruction of all property of one or more persons or organiza- tions, including the loss of use thereof as the result of any one occurrence. The limit of liability stated in the Declarations for Coverage D as applicable to "each occurrence" is the total limit of the Company's liability for all damages, including damages for care and loss of services arising out of bodily injury, sickness or disease and, if arising out of the foregoing, mental anguish including death resulting therefrom, sustained by one or more persons and all damages arising out of injury to or destruction of all property of one or more persons or organizations, including the loss of use thereof, as the result of any one occurrence. 4. SEPARATE INSUREDS. The insurance afforded under the coverages set forth above apply separately to each insured against whom claim is made or suit is brought, but the inclusion herein of more than one insured shall not operate to increase the applicable limits of the Company's liability. 5. ACTION AGAINST COMPANY. No suit or action on this policy for recovery of any loss or claim shall be sustained in a court of law, or equity, unless as a condition precedent thereto, the insured shall have fully complied with all the terms of this policy, nor until the amount of the insured's obligation to pay shall have been finally determined either by judgment against the injured after actual trial or by written agreement of the insured, the claimant and the Company. Form 102 Rev. 3/75 (4 of 6) 44 Any person or organization or the legal representative thereof who has secured such judgment or written agreement shall thereafter be entitled to recover under this policy to the extent of the insurance afforded by this policy. Nothing contained in this policy shall give any person or organization any right to join the Company as co- defendent nor shall the Company be impleaded by the insured or his legal representative in any action against the insured to determine the insured's liability. Bankruptcy or insolvency of the insured or of the insured's estate shall not relieve the Company of any of its obligations hereunder. 6. FINANCIAL RESPONSIBILITY LAWS. When this policy is certified as proof of financial responsibility for the future under the provisions of any aircraft financial responsibility law, such insurance as is afforded by this policy for the coverages set forth above shall comply with the provisions of such law to the extent of the coverage and limits of liability required by such law, but in no event in excess of the limit of liability stated in this policy. The insured agrees to reimburse the Company for any payment made by the Company which it would not have been obligated to make under the terms of this policy except for the agreement contained in this paragraph. APPLICABLE TO COVERAGE E (MEDICAL PAYMENTS): 7. MEDICAL REPORTS: PROOF AND PAYMENT OF CLAIM. As soon as practicable the injured person or someone on his behalf shall give to the Company written proof of claim, under oath if required, and shall, after each request from the Company, execute authorization to enable the Company to obtain medical reports and copies of records. The injured person shall submit to physical examination by a physician selected by the Company when and as often as the Company may reasonably require. The Company may pay the injured person or any person or organization rendering the services and such payment shall reduce the amount payable hereunder for such injury. Payment here- under shall not constitute admission of liability of the insured, or except hereunder, of the Company. 8. LIMIT OF LIABILITY. The limit of liability stated in the Declarations as applicable to "each person" is the limit of the Company's liability for all expenses incurred by or on behalf of each person who sustains bodily injury in any one occurrence. The limit of liability as stated in the Declarations for Coverage E as applicable to "each occurrence" is subject to the above provision respecting each person, the total limit of the Company's liability for all expenses incurred by or on behalf of two or more persons who sustain bodily injury in any one occurrence. 9. ACTION AGAINST COMPANY. No action shall lie against the Company unless, as a condition precedent thereto, there shall have been full compliance with all the terms of this policy, nor until 60 days after the required proofs of claim have been filed with the Company. 10. OTHER INSURANCE. With respect to Special Provisions II and I I I only, the insurance afforded by Coverage E shall be excess insurance over any other valid and collectible Medical Payments insurance applicable thereto. APPLICABLE TO COVERAGES F. G, H AND I (HULL): 11. INSUREDS DUTIES WHEN LOSS OCCURS. When loss occurs, the insured shall: (al protect the aircraft, provided the insured is able to do so, whether or not the loss is covered by this policy, and any further loss due to the insured's failure to protect shall not be recoverable under this policy; reasonable expense incurred in affording such protection shall be deemed incurred at the Company's request; (b) give notice thereof as soon as practicable to the Aviation Managers, and also, in the event of theft, to the police, but shall not, except at his own cost, offer or pay any reward for recovery of the aircraft; (c) file proof of loss with the Aviation Managers or the Company within 60 days after the occurrence of loss, unless such time is extended in writing by the Aviation Managers or the Company in the form of a sworn statement by the insured setting forth the interest of the insured and of all others in the property affected, any encumbrances thereon, the actual cash value thereof at time of loss, the amount, place, time and cause of such loss and the description and amounts of all other insurance covering such property. (d) cooperate with the Aviation Managers and the Company and upon the Aviation Managers' or the Company's request shall assist in the recovery of property insured hereunder either by means of replevin proceedings or otherwise in effecting settle- ment, securing evidence, obtaining attendance of witness and prosecuting suits to such an extent and in such a manner as is deemed desirable by the Aviation Managers or the Company. Any such act or acts of the insured, the Aviation Managers or the Company, or their agents including recovering, saving or pre- serving the property described herein shall be construed as having been done for the benefit of all concerned and without prejudice to the rights of either party and where loss or damages suffered constitute a claim under this policy, then all reasonable expenses thus incurred shall also constitute a claim under this policy. Upon the Aviation Managers or the Company's request the insured shall exhibit the damaged property to the Aviation Managers or the Company and submit to examinations under oath by anyone designated by them, subscribe to same, and produce for their examination all pertinent records, log books, and sales invoices or certified copies if originals be lost, permitting copies thereof to be made, all at such reasonable times and places as the Aviation Managers or the Company shall designate. 12. LIMIT OF LIABILITY: NO ABANDONMENT. The limit of the Company's liability for direct physical loss of or direct physical damage to the aircraft shall be: (a) in case of total loss, the amount of insurance as stated in the Declarations less the applicable deductible; (b) in case of partial loss if repairs are made by a named insured, the total of the following items less the applicable deductible: (1) the named insured's costs for necessary material and parts of like kind and quality, (2) wages paid for labor at current straight time rates at the place of repair with no premium for overtime, plus 50% of such wages as an allowance for overhead and supervision, (3) cost of transportation; (c) if repairs are made by other than a named insured, the net cost to the named insured, excluding all premium charges for overtime, to repair the aircraft with material and parts of like kind and quality, and cost of transportation, less the applicable deductible; (d) whenever the Company pays a claim in an amount equal to the sum payable for a total loss, it shall at its option be entitled to all salvage value. There shall, however, be no abandonment of the aircraft to the Company without its consent; (e) the liability of the Company shall in no event, for any purpose hereunder, exceed the amount of insurance applicable to the aircraft less the applicable deductible. Form 102 Rev. 3/75 (5 of 6) 13. COST OF TRANSPORTATION. The cost of transporting new or damaged parts or of transporting the damaged aircraft to the place of repair and return to place of accident or home airport, whichever be the nearer, shall be limited to the least expensive method of reasonable transportation. In case of loss arising outside the Continental limits of the United States of America, or arising in Alaska or Hawaii, the limit of the Company's liability for salvaging the aircraft including the transportation thereof and /or the transportation of new or damaged parts to the place of repair and return to the place of accident or home airport, whichever be the nearer, shall be limited to the least expensive method of reasonable transporta- tion, but in no event shall exceed 15% of the claim otherwise payable. 14. APPRAISAL. If the named insured and the Company fail to agree as to the amount of loss, each shall, on the written demand of either, made within 60 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 15 days to agree upon such umpire, then, on the request of the named insured or the Company, such umpire shall be selected by a judge of a court of record in the county and state in which such appraisal is pending. The appraisers shall then appraise the loss, stating separately the actual cash value at the time of loss and the amount of loss, and failing to agree shall submit their differences to the umpire. An award in writing of any two shall determine the amount of loss. The named insured and the Company shall each pay his or its chosen appraiser and shall bear equally the other expenses of the appraisal and the umpire. The Company shall not be held to have waived any of its rights by any act relating to appraisal. 15. AUTOMATIC REINSTATEMENT. In the event of loss, whether or not covered by this policy, the amount of insurance in respect to any aircraft shall be reduced as of the time and date of loss by the amount of such loss and such reduced value shall continue until repairs are commenced when the amount of insurance shall automatically be increased by the value of the completed repairs until the original amount of insurance is fully reinstated or the policy has expired. 16. PAYMENT FOR LOSS: ACTION AGAINST COMPANY. Payment for loss shall not be required nor shall any suit or action on this policy for recovery of any loss or claim be sustainable in a court of law or equity unless, as a condition precedent thereto, the named insured shall have fully complied with all the terms of this policy, nor until 60 days after proof of loss is filed and the amount of loss is determined as provided in this policy nor at all unless commenced within 12 months after the physical happening of the occurrence which gave rise to the loss or claim. 17. RIGHTS AGAINST THIRD PARTIES. The Hull Coverage afforded under this policy shall not inure directly or indirectly to the benefit of any third party. Any act or agreement by the named insured whereby any right of the named insured to recover the full value of, or amount of damage to, any property lost or damaged and insured hereunder, from any third party liable therefor, is released, impaired or lost, shall relieve the Company from any liability under this policy for or on account of any such loss or damage, but the Company's right to retain or recover the premium shall not be affected. APPLICABLE TO ALL COVERAGES: 18. ASSISTANCE AND COOPERATION OF THE INSURED. The insured shall cooperate with the Aviation Managers and the Company and, upon their request, shall attend hearings and trials and shall assist in effecting settlements, securing and giving evidence, obtaining the attendance of witnesses and in the conduct of suits. The insured shall not, except at his own cost, make any payment, assume any obligation or incur any expense other than for such immediate medical and surgical relief to others as shall be imperative at the time of an occurrence or as provided under Condition 11, subparagraph (a). 19. ACTION AGAINST THE INSURED. The Aviation Managers shall have the power to institute and maintain suits in its own name, or the name of the Company, against the named insured for non - payment of premium, or for breach of any other obligation arising from or by reason of this insurance, and any judgment so obtained or release or receipt by the Aviation Managers or the Company shall be binding upon the Aviation Managers and the Company. 20. INSPECTION AND AUDIT. Any duly authorized represen- tative of the Aviation Managers or the Company shall be permitted to inspect the aircraft, all applicable log books and aircraft records, and to examine the insured's books and records, relating thereto at any time during the policy period and within one year after the final termination of this policy or until final settlement of all claims hereunder, whichever is later. 21. SUBROGATION. Except in respect to Coverage E, if the Company becomes liable for any payment under this policy in respect of loss, damage or liability the Company shall be subrogated, to the extent of such payment, to all the rights and remedies of the insured against any party in respect of such loss, damage or liability and shall be entitled at their own expense to sue in the name of the insured. The insured shall give to the Company all such assistance in his power as the Company may require to secure their rights and remedies, and at the Company's request, shall execute all documents necessary to enable the Company effectively to bring suit in the name of the insured including the execution and delivery of the customary form of loan receipt. It is further agreed that such action by the Company need not include the applicable deductible, except when requested by the insured in writing. The insured shall do nothing to prejudice such rights. 22. OTHER INSURANCE. Except with respect to insurance specifically purchased by the named insured to apply in excess of this policy, if there is other insurance, in the insured's name or otherwise, against loss, liability or expense covered by this policy, the Company shall not be liable under this policy for a greater proportion of such loss, liability or expense than the applicable limit of the Company's liability as stated in the Declarations of this policy, bears to the total applicable limit of liability of all valid and collectible insurance against such loss, liability or expense, provided however, that with respect to Special Pro- visions II & 111, of this policy, this insurance shall be excess insurance over any other valid and collectible insurance available to the insured, either as an insured under a policy applicable with respect to the aircraft or otherwise and, if such other insurance available to the insured shall have been written through the Aviation Managers, the limit of the Company's liability applicable Farr- 102 Rev. 3/75 (6 of 6) to such loss under this policy shall be reduced by the applicable limit of liability under such other available insurance. 23. CHANGES. Notice to any agent or knowledge possessed by any agent or by any other person shall not effect a waiver or a change in any part of this policy or estop the Company from asserting any right under the terms of this policy; nor shall the terms of this policy be waived or changed, except by endorse- ment issued to form a part hereof signed by the Aviation Managers. 24. ASSIGNMENT. Assignment of interest under this policy shall not bind the Company until its consent is endorsed hereon by the Aviation Managers; if, however, the named insured shall die within the policy period, this policy, unless canceled, shall, provided written notice be given the Aviation Managers within 60 days, after the date of such death, apply to his legal representa- tives as the named insured. 25. CANCELLATION. This policy may be canceled by the named insured by surrender thereof to or by mailing to the Aviation Managers written notice stating when thereafter the cancellation shall be effective. This policy may be canceled by the Company or the Aviation Managers by mailing to the named insured at the address shown in this policy written notice stating when not less than 10 days thereafter such cancellation shall be effective. The mailing of notice as aforesaid shall be sufficient proof of notice. The time of the surrender or the effective date and hour of cancellation stated in the notice shall become the end of the policy period. Delivery of such written notice either by the named insured, the Company or the Aviation Managers shall be equivalent to mailing. If the named insured cancels, earned premium shall be computed in accordance with the customary short rate table and procedure. If the Company or the Aviation Managers cancel, earned premium shall be computed pro rata. Premium adjustment may be made either at the time cancellation is effected or as soon as practicable after cancellation becomes effective, but payment or tender of unearned premium is not a condition of cancellation. The Company shall not be liable for any return premium in respect to an aircraft on which a total loss has been paid. 26. FRAUD OR MISREPRESENTATION. This policy shall be void if the named insured has concealed or misrepresented any material fact or circumstance concerning this insurance or the subject thereof or in case of any fraud, attempted fraud or false swearing by the named insured touching any matter relating to this insurance or the subject thereof, whether before or after a loss. 27. DECLARATIONS. By acceptance of this policy the named insured affirms that the statements in the Declarations are his agreements and representations and the named insured acknowl- edges that this policy is issued in reliance upon the truth of such representations and that this policy embodies all agreements existing between himself and the Aviation Managers, the Com- pany, or any of their agents relating to this insurance. !a AIRCRAFT ENDORSEMENT Inconsideration of (an 7p1tlh®61 /a return) premium of 41, 076. 00 it is agreed that this policy is amended by the Dradmilmdeletion) of the air- craft described below: The insurance afforded is only with respect to such and so many of the following coverages as are indicated by specific premium charge or charges. The limit of the company's liability against each such coverage shall be as stated herein, subject to all of the terms of this policy having reference thereto. If more than one aircraft is insured hereunder the terms of this policy shall apply separately to each. 'Type A- Amphibian L -Land S- Seaplane HULL TOTAL $ IN 11� ENDORSEMENT PREMIUM $ 1, U t O. V U Coverage Premium D $2, 300.00 F PR .468 �'; G`glr Nothing herein contained shall vary, alter, waive or extend any of the terms, provisions, representations, conditions or agreements of the policy other than as above stated. This endorsement becomes effective November 25, 1978 to be attached to and hereby made a part of Policy No. to � H -2 -3f 35 wsuedb Puritan Tncnranrp, Camnany it ort leach This endorsement shall not be valid unless approved by the Aviation Managers. Endorsement No #10 Date of Issue February 21, 1979 Form 139' Rev. 11/72 E HI /bb ❑ Southern Marine & Aviation Underwriters, Inc. ® Southern Marine & Aviation, Inc. By r -` G LIMITS OF LIABILITY LIABILITY ITEM 1. Liability Coverages PREMIUMS Each Person Each Occurrence HULL COVERAGE IDENTIFIED F. All Risks; Ground &Flight. G. All Risks; Ground only — excluding taxiing. H. All Risks; Ground only — including taxiing. I. As endorsed hereon. m o m c E —o A. Bodily Injury — excluding Passengers $ $ $ NIL B. Property Damage xxxxx C. Passenger Liability NIL D. Single Limit — INcluding Passengers xxxxx j I 076, 00 E. Medical Payments — cluding Crew NIL Jee limclorSeMent #3 LIAB. TOTAL $ , ITEM 2. DESCRIPTION OF AIRCRAFT AND HULL COVERAGES HEREUNDER: THE INSURED AFFIRMS THAT EACH OF THE AIRCRAFT DESCRIBED IN THIS POLICY IS LICENSED UNDER A "STANDARD" AIRWORTHINESS CERTIFICATE AS DEFINED BY THE F.A.A. F.A.A. TOTAL Amount Hull DEDUCTIBLES Not In In Cert. Make and Model Year Type Engine En & H.P. g SEATS of Cover- HULL No. Built INCL. Insurance age PREMIUMS Motion Motion CREW )626-F-- Hu hes 300 C R L c 2 $ NIL NIL $NIL $ -- $ -- -. I 'Type A- Amphibian L -Land S- Seaplane HULL TOTAL $ IN 11� ENDORSEMENT PREMIUM $ 1, U t O. V U Coverage Premium D $2, 300.00 F PR .468 �'; G`glr Nothing herein contained shall vary, alter, waive or extend any of the terms, provisions, representations, conditions or agreements of the policy other than as above stated. This endorsement becomes effective November 25, 1978 to be attached to and hereby made a part of Policy No. to � H -2 -3f 35 wsuedb Puritan Tncnranrp, Camnany it ort leach This endorsement shall not be valid unless approved by the Aviation Managers. Endorsement No #10 Date of Issue February 21, 1979 Form 139' Rev. 11/72 E HI /bb ❑ Southern Marine & Aviation Underwriters, Inc. ® Southern Marine & Aviation, Inc. By r -` G ^ �^ .^~ \/r ' IT IS HEREBY UNDERSTOOD AND AGREED THAT: 1. Charles Olmstead and Richard Lewis Miller are deleted as approved pilots under Endorsement #1. 2. Automatic Insurance for Newly Acquired Aircraft in Special Provisions II of the Policy Provisions Part 2 is amended to allow 30 days notice to the Aviation Managers with the other terms and re- quirements of Special Provision II remaining un- changed. 3. Endorsement #6 is amended to provide coverage for non —owned rotorcraft used by the Named Insured with the other terms and requirements of Endorse- ment #6 remaining unchangedi 4. This policy shall be deemed excess over any other valid and collective insurance available to the City but subject to all policy coverage, terms, conditions, limitations and exclusions. Nothing herein contained shall vary, alter, waive or extend any of the terms, provisions, representations, conditions or agreements of the policy other than as above stated. This endorse ent becomes effective May 15, 1979 to be attached to and hereby made a part of Policy No. H-21214 issued b Puritan Insurance Company ity of Newport Beach This endorsement shall not be valid unless approved by the Aviation Managers. Endorsement No. #11 ❑ Southern Marine & Aviation Underwriters, Inc. Date of Issue July 9 1979 21 Southern Marine & Aviation, Inc. -� EHJ /dri / JUL 1 1 1979 B 1 - 2/ Form 102 -L 1/71 a 4b Aviation Insurance Policy Southern Marine & Aviation Underwriters, Inc. AVIATION MANAGERS THE INSURER IS: PURITAN INSURANCE COMPANY STAMFORD, CONNECTICUT (Hereinafter called the Company) A Stock Company Enquiries may be directed to: Administrative Office: 610 Poydras Street New Orleans, Louisiana 70130 This policy includes the Declaration, Insuring /agreements, Exclusions and Conditions which are attached hereto and made a part hereof as fully as though they were set forth over the signatures affixed hereon. IN WITNESS WHEREOF, the company has caused this policy to be executed and attested, but this policy shall not be valid unless countersigned by a duly authorized agent of the company and approved by the Aviation Managers. Secretary Form 100 (Rev. 10/25/78( PLEASE READ YOUR POLICY President 06 *0 CITY OF NEWPORT BEACH CALIFORNIA City Ilan 3300 W. Newport Blvd. Area Code 714 DATE September 15, 1978 TO: FINANCE DIRECTOR FROM: City Cleric SUBJECT: Contract No. 2045 Description of Contract Aviation Insurance Policy, Southern Marine and Aviation, Inc., Puritan Insurance Company. Authorized by R*"3m-k'JartxNa. City Manager , adopted on May 15, 1978 Effective date of Contract May 15, 1978 through May 15, 1979. Contract with Southern Marine & Aviation, Inc., Puritan Insurance Company. Address 610 Poydras New Orleans, Louisiana 70130 Amount of Contract $4,600.00 City Clerk 'i Aviation Insurance Policy Southern Marine & Aviation, Inc. AVIATION MANAGERS PURITAN INSURANCE COMPANY NEW YORK, NEW YORK (Hereinafter called the Company) A Stock Company Administrative Office: 610 Poydras Street New Orleans, Louisiana 70130 This policy includes the Declaration, Insuring Agreements, Exclusions and Conditions which are attached hereto and made a part hereof as fully as though they were set forth over the signatures affixed hereon. IN WITNESS WHEREOF, the company has caused this policy to be executed and attested, but this policy shall not be valid unless countersigned by a duly authorized agent of the company and approved by the Aviation Managers. Se NIILUM /GARV>✓Y ineennee -broken inn. I phone (714) 6WON2 Form 100 (REV 10/1/76) NOTE: Attach endorsements beneath Dedfration Page DEPATIONS PART 1 'This page with the Policy Cover — Form 100 and the Policy, Provisions— Part 2, Form 102, completes this numbered .- AVIATION HULL and LIABILITY POLICY ISSUED BY Policy Number H- — 3 53 PURITAN INSURANCE COMPANY -- ITEM 1. City of Newport Beach Name of Insured Previous Policy No. New ITEM 2. 3300 NpaMnrt Roul eypra ITEM 5. Loss Payable: Any loss under Coverages F, G, H and 1 is payable, to the P. O. Address 'Named Insured and None Newport Beach, California_ 92663 _ ITEM, 3. From Mo.r. 15 1 078 To as the letters interest may appear. Policy Period: 12:01 "A M., tabard time at the address nit irn�2. - r' -ITEM 4. ITEM S..3Aircraft Regularly Hangared at ❑ Tied Down at ® Airport and Business of Named l nsured Muni rivali Location''`'_': nr�ggp Cnilnfy Airrnrt_. -_. -_ The insurance afforded is only tvi_t2respect to such and so many of the following coverages as are indicated by specific premium charge or charges. The limit of the company's liability ' against each s ich coverage shall be as stated herein, subject to all o! the terms of this policy having reference thereto. If more than one aircraft is insured.hereunder the terms of this policy shall apply separately to each. ITEM 7. Liability Coverages LIMITS OF LIABILITY A. Bodily Injury — excluding Passengers $ - $ B. Property Damage xxxxx C. Passenger Liability ,. D. Single Limit— IN cluding Passengers xxxxx ;,000,00 E. Medical Payments— cluding Crew *See Passenger Limitatim Endorsement LIAR. " ITEM 8. DESCRIPTION OF AIRCRAFT AND HULL COVERAGES HEREUN DESCRIBED IN THIS POLICY IS LICENSED UNDER A. "STANDARD" / C LIABILITY - _ Make and Model Year Built PREMIUMS HULL COVERAGE IDENTIFIED F. All Risks; Ground & Flight. G: A ll Risks; Ground only — TOTAL SEATS CREW CREW $ Nil Nil Nil DEDUC911LES ' excluding tax iing. II 600.00 Hughes 300C H. All Risks; Ground only — including taxiing. 1. As endorsed hereon. p x a E Nil $ wi I $ -0 s h 6nn_nn THE INSURED AFFIRMS THAT EACH OF. THE AIRCRAFT )RTHINESS CERTIFICATE AS DEFINED BY THE F.A.A. F.A.A. Cert. No. - _ Make and Model Year Built Type • Enine &H.P. 9 TOTAL SEATS CREW CREW Amount of Insurance Hull Cover- age HULL - PREMIUMS DEDUC911LES ' Not In Motion 79626F Hughes 300C $ $ wi I $ $ V 62 F Hughes 300C 'Type A- Amphibian L -Land HULL TOTAL'$ POLICY PREMIUM $ ITEM 9. The aircraft will be used only for the purposes indicated by "X" below (see Definitions) Executive Pleasure and 'Industrial Instruction Chart er - Transpbrt" X Business" Aid" - and /or Rental" I Commercial" "'Commercial" v X❑ Including police work and the instruction o4�91;iglas Morton .ITEM 10. PILOTS —THE COVERAGE AFFORDED SY THIS POLICY SHALL APPLY UNLESS THE AIRCRAFT IS OPEI&-TED IN FLIGHT BY THE PILOTS .ENDORSED HEREON AND THEN ONLY PROVIDED SAID MLOTS ARE QUALIFIED IN ACCORDANCE WITFA.THE TERMS OF THE ENDORSEMENT(S). - 4, ITEM 11. (a) THE NAMED INSURED IS THE SOLE OWNER. OF THE AIRCRAFT AND THE AIRCRAFT IS NOT SUBJECT TO ANY ENCUMBRANCE OTHER THAN AS INDICATED IN ITEM 5. (b) DURING THE PAST YEAR NO INSURER HAS CANCELED OR DEC LINED TO RENEW ANY AIRCRAFT INSURANCE ISSUED TO THE NAMED INSURED- EXCEPTION, IF ANY_ ABSENCE OF ANY ENTRY MEANS NO EXCEPTION. f. Is Producer MilumiGarvey Insurance Brokers, In ., UTHERN MARINE &AVIATION UNDERWRITERS, INC. ❑ 3720 Camrmc nri ve - SOUTHERN MARINE & AVIATION, INC. New Port Beach. ,Aviation Managers Countersigned b - _ Approved b - A horized Reprl0e tative - Form 101 aln ( .. ORIGINAL' T z 4t.r1Llr 3', St When in flight the aircraft 101 he operate( guaced below- and then only if the, said pilots) is properly certificated and fa,-: c! r " :1;E- FAA alter holds the valid certificates and ratings and has the minimum flying exjwrieai4 o, aIl is indiratod below, and in addition holds a valid and current medical' certificate: 1. Charles Olmstead, Commercial Pilot's License, rotor - wing rating, having logged 3,670 hours in rotorcraft. 2. Tim Grundeman, Commercial Pilot's License, rotor - wing rating, having logged 4,000 hours in rotorcraft. 3• Harry Williams, Commercial Pilot's License, rotor - wing rating, having logged 2,000 hours in rotorcraft. 4. Bruce Foster, Commercial Pilot's License, rotorwing rating, having logged 2,120 hours in rotorcraft. 5. Douglas Morton, Student Pilot's License, who is at all times in fall compliance with the Rotorcraft Supervision Endorsement attached hereto. '"Comparable or more complex type shall be in reference to each particular aircraft insured herein and shall be defined as aircraft with not less than 509, of the total horsepower, the same number of or more engines, and a retractable landing gear if the insured aircraft is so equipped. Nothing herein contained shall vary, alter, waive or extend any of the terms, provisions, representations, conditions or agreements of the policy other than as above stated. This endorsement becomes effective _May. 15 1978 _. to be, attached to and hereby made a part of Policy No. H -2 -445_ issued by Puritan Insurance Company to _Cjty.of Newport Beach This endorsement shall not be valid unless approved by the Aviation Managers_. Endorsement No. #1 Southern Marine & Aviation Underwriters, Inc. Date of Issue —`Mny 'Iq7_ R _ __ Southern M & Aviation, Inc. EHJ /dri C, ay Form 11 5/71 ORIGINAL N ROTORCRAFT SUPERVISION ENDORSEMUT It is specifically understood and agreed that this policy does not apply and no coverage is afforded to any Insured while any rotorcraft insured under this policy is being operated by any pilot who does not hold a rotorcraft -- helicopter rating unless said pilot is accompanied at all times by a Flight Instructor properly certificated and rated by the FAA and holding a rotor - craft- helicopter rating, or said Instructor shall have specific- ally approved each flight or attempted flight by said pilot prior to lift -off. This exclusion shall not apply after said pilot has received his rotorcraft- helicopter rating. Nothing herein contained shall vary, alter, waive or extend any of the terms, provisions, representations, conditions or agreements of the policy other than as above stated. This endorsement becomes effective May 15- 1978 to be attached to and hereby made a part of Policy No. H-2-E5' issued by Puritan Insurance Company This endorsement shall not be valid unless approved by the Aviation Managers. Endorsement No. �2 ❑ Southern Marine & Aviation Underwriters, Inc Date of Issue May 22, 1978 Souther rine & Aviation, I EHJ /dri By K Form 102 "L 1171 M M LIMIT-OF LIABILITY ENDORSEMENT PASSENGER LIABILITY In consideration of the premium charged for Coverage D it is agreed that the Company's liability under Coverage D for all claims arising out of Passenger Bodily Injury sustained by any one person shall not exceed $ 500,000.00 and subject to that limit for each person the Company's liability for all claims arising out of Passenger Bodily Injury in respect of any one occurrence is that limit for each person multiplied by the number of passenger seats and in no event is it to exceed $ 500,000.00 any one occurrence. Nothing herein contained shall vary, alter, waive or extend any of the terms, provisions, representations, conditions or agreements of the policy other than as above stated. This endorsement becomes effective May 15, 1978 to be attached to and hereby made a part of Policy No. issued by puritan Insurance company to ('9 ty of Newport Reach This endorsement shall not be valid unless approved by the Aviation Managers. Endorsement No. #3 ❑ Southerr,Marine & Aviation Underwriters, Inc. IJ Southern Marine & Aviation, Inc. Date of Issue May 22, 1978 EHJ %dri By Form 133 101 ��� ADDITIONAL INSURED ENDORSEMENT (Liabilities Only) In consideration of an additional premium of $ Included and with respect to Coverage(s) D it is agreed to include City of Garden Grove, California as an additional insured but only with respect to the operations of the aircraft insured hereunder by the named insured. This agreement shall not operate to prejudice the Company's rights of recourse against said additional insured as manufacturers, repairers, suppliers or servicing agents where such rights of recourse would have existed had this endorsement not been effected under this policy. It is further understood and agreed that notwithstanding the inclusion herein of more than one insured, the total liability of the company in respect of any or all insureds shall not exceed the limit(s) of liability stated in this policy. Subject otherwise to all the terms, conditions, exclusions and limitations of the policy. Nothing herein contained shall vary, alter, waive or extend any of the terms, provisions, representations, conditions or agreements of the policy other than as above stated. This endorsement becomes effective May 15, 197b to be attached to and hereby made a part of Policy No. H-2 -3353 issued by Puritan Insurance Company to City of Newport Beach This endorsement shall not be valid unless approved by the Aviation Managers. Endorsement No. Date of Issue May 22. 1978 EHJ(dri Form 130 4)72 ❑ Southern Marine & Aviation Underwriters, Inc [3 Southern Marine & Aviation, Inc. rij so It is hereby understood and agreed that the Passenger Legal Liability Coverage is deleted whilst the air- craft is being used for instruction of Douglas Morton. Nothing herein contained shall vary, alter, waive or extend any of the terms, provisions, representations, conditions or agreements of the policy other than as above stated. This endorsement becomes effective May 15, 1978 to be attached to and hereby made a part of Policy No. H -2 -3353 issued by Puritan Insurance Comnaay City of Newoort Beach This endorsement shall not be valid unless approved by the Aviation Managers. Endorsement No. #5 ❑ Southern Marine & Aviation Underwriters, Inc Date of Issue May 22, 1978 Southern Marine & Aviation, Inc. EAJ /dri � Form 102 -L 1171 N so NON -OWNED AIRCRAFT LIABILITY ENDORSEMENT In consideration of an additional premium of $ Tnrl„rlad , it is agreed that such insurance as is afforded by this policy is extended to include non -owned wing aircraft used by the named insured. ro or A. PROVIDING this extension of coverage 1. is subject to all the terms and conditions including the Pilot Qualifications of the policy EXCEPT that the Special Provisions titled "Automatic Insurance for Newly Acquired Aircraft" and "Use of Other Aircraft Limited" are deleted in their entirety, and any insurance otherwise provided under the definition of "Insured" shall not be applicable. 2. only applies to aircraft not owned in whole or in part by, or leased under a long term lease or lease- option purchase agreement by the named insured or any member of the named insured's household, or if the named insured be a corporation or partner- ship, by any executive officer or partner thereof, or any member of the family of such executive officer or partner. 3. shall not apply to liability arising out of any product manufactured, sold, handled or distributed by the named insured. 4. shall not apply to any aircraft having a seating capacity, including crew, in excess of P 5. shall not apply to liability for loss of or damage to the aircraft or any consequential loss arising therefrom. B. This insurance shall be excess insurance over any other valid and collectible insurance available to the named insured, either as an insured under a policy applicable with respect to the aircraft or otherwise, against a loss covered thereunder. Nothing herein contained shall vary, alter, waive or extend any of the terms, provisions, representations, conditions or agreements of the policy other than as above stated. This endorsement becomes effective May 15 1978 to be attached to and hereby mode a part of Policy No. H -2 -3353 jssued by Puritan Insurance omp nv This endorsement shall not be valid unless approved by the Aviation Managers. Endorsement No. N6 El Souther Marine & Aviation Underwriters, Inc. Date of Issue May 22, 1978 So ern Marine & Aviation,, -tnc. J\ EHJ /dri Form 116 4/72 NMEXICO ENDORSEMENT 40 WARNING Unless you have automobile or aircraft insurance written by a Mexican insurance company, you may spend many hours or days in jail, if you have an accident in Mexico. Insurance coverage should be secured from a company licensed under the laws of Mexico to write such insurance in order to avoid complications and some other penalties possible under the laws of Mexico, including the possible impound- ment of your automobile or aircraft. This endorsement is issued only with respect to the liability portion of the coverage afforded by the policy in compliance with the law of California as the policy to which it is attached applied to occurrences and loss happening during the policy period and within Mexico. Nothing herein contained shall vary, alter, waive or extend any of the terms, provisions, representations, conditions or agreements of the policy other than as above stated. This endorsement becomes effective May 1 5.,1 978 to be attached to and hereby made a part of Policy No. H -2 -335 -3 issued byP ritan Tn Gnranra Cnmsany to City of Npwnnrt. Rpn rh This endorsement shall not be valid unless approved by the Aviation Managers. Endorsement No. #7 SOUTHERN MARINE & AVIATION, INC. May 22, 1978 SOUTHERN k4ARINE & AVIATION UNDE ITERS, INC. El EHJ Date /Issue /dri D Form 145 1/71 IM-A114 09 IN CONSIDERATION OF THE PREMIUM CHARGED IT IS UNDERSTOOD AND AGREED THAT: 1. SPECIAL PROVISIONS, paragraph IV POLICY PERIOD AND TERRITORY is changed to read as follows: IV POLICY PERIOD AND TERRITORY. This policy applies only to occurrences and loss happening during the policy period and within the United States of America (excluding Alaska), Canada and Mexico or while the aircraft is being transported between ports thereof. Nothing herein contained shall vary, alter, waive or extend any of the terms, provisions, representations, conditions or agreements of the policy other than as above stated. This endorsement becomes effective May 15. 1978 to be attached to and hereby made a part of Policy No. H -2 -3353 issued by Puritan Insurance Company to City of Newport Beach This endorsement shall not be valid unless approved by the Aviation Managers. Endorsement No. //R ❑ Southern Marine & Aviation Underwriters, Inc. ® Southem Marine & Aviation, In Date of Issue may 22.E 1q;R EHJ /dri ` Form 137 2/74 N N POLICY PROVISIONS PART 2 The Company agrees with the insured, both named in the Declarations made a part hereof, in consideration of the payment of the premium and in reliance upon the statements in the Declarations and subject to the Limits of Liability, Exclusions, Special Provisions and Conditions and other terms of this policy to afford those of the following coverages as specified in the Declarations: INSURING AGREEMENTS COVERAGE A — Bodily Injury Liability, Excluding Passengers. To pay on behalf of the insured all sums which the insured shall become legally obligated to pay as damages, including damages for care and loss of services, because of bodily injury, sickness or disease and, if arising out of the foregoing, mental anguish, including death resulting therefrom, sustained by any person or persons other than passengers, caused by an occurrence and arising out of the ownership, maintenance or use of the aircraft. COVERAGE B — Property Damage Liability. To pay on behalf of the insured all sums which the insured shall become legally obligated to pay as damages because of injury to or destruction of tangible property, including the loss of use thereof, caused by an occurrence and arising out of the ownership, maintenance or use of the aircraft. COVERAGE C — Passenger Bodily Injury Liability. To pay on behalf of the insured all sums which the insured shall become legally obligated to pay as damages, because of bodily injury, sickness or disease including damages for care and loss of services, because of bodily injury, sickness or disease and, if arising out of the foregoing, mental anguish, including death resulting there- from, sustained by any passenger or passengers caused by an occurrence and arising out of the ownership, maintenance or use of the aircraft. COVERAGE D — Single Limit — Bodily Injury (including or excluding Passengers) and Property Damage Liability. To pay on behalf of the insured all sums which the insured shall become legally obligated to pay as damages, including damages for care and loss of services, because of bodily injury, sickness or disease and, if arising out of the foregoing, mental anguish, including death resulting therefrom, sustained by any person excluding passengers, unless the Declarations describe Coverage D as "including passengers" and as damages because of injury to or destruction of tangible property, including loss of use thereof, caused by an occurrence and arising out of the ownership, maintenance or use of the aircraft. COVERAGE E — Medical Payments. To pay all reasonable expenses incurred within one year from the date of the occurrence for necessary medical, surgical, x -ray and dental services including prosthetic devices, and the necessary ambu- lance, hospital, professional nursing and funeral services to or for each person, and each member of the crew if the Declarations describe Coverage E as "including Crew ", who sustains bodily injury, caused by an occurrence, while in or on, entering or alighting from the aircraft providing the said aircraft is being used with the permission of the named insured. COVERAGE F — All Risks, Ground and Flight. To pay for any direct physical loss of or direct physical damage to the aircraft, including disappearance. COVERAGE G — All Risks, Ground only excluding Taxiing. To pay for any direct physical loss of or direct physical damage to the aircraft while not in flight or taxiing. COVERAGE H — All Risks, Ground only including Taxiing. To pay for any direct physical loss of or direct physical damage to the aircraft while not in flight. COVERAGE I —As endorsed hereon. SPECIAL PROVISIONS (APPLICABLE ONLY TO THE COVERAGES INDICATED) I. DEFENSE, SETTLEMENT, SUPPLEMENTARY PAY- MENTS. With respect to the insurance afforded under Coverages A, B, C and D, the Company shall: (a) defend any suit against the insured alleging such bodily injury or property damage and seeking damages which are payable under the terms of this policy even if any of the allegations of the suit are groundless, false or fraudulent; but the Company shall have the right to make such investigation, negotiation and settlement of any claim or suit as it deems expedient; (b) pay all premiums on bonds to release attachments for an amount not in excess of the applicable limit of liability of this policy, all premiums on appeal bonds required in any such defended suit, but without any obligation to apply for or furnish such bonds, all costs taxed against the insured in any such suit, all expenses incurred by the Company, all interest accruing after entry of judgment until the Company has paid, tendered or deposited in court such part of such judgment as does not exceed the limit of the Company's liability thereon; (c) pay expenses incurred by the insured, in the event of bodily injury, for such immediate medical and surgical relief to others as shall be imperative at the time of the occurrence; (d) reimburse the insured for all reasonable expenses (other than loss of earnings, or wages and salaries of employees of the insured) incurred at the Company's request. The Company agrees to pay the amounts incurred under this Special Provision except settlements of claims and suits, in addition to the applicable limit of liability of this policy. Form 102 Rev. 3/75 (1 of 6) II. AUTOMATIC INSURANCE FOR NEWLY ACQUIRED AIR- CRAFT. (Coverages A, B, C, D and E) This provision is not applicable if the approved uses under this policy include "Instruction and/or Rental ", "Charter Commercial ", or "Com- mercial". If the named insured who is the owner of the aircraft described in the Declarations shall acquire ownership of another aircraft of the fixed wing land plane type having a "Standard" airworthiness certificate issued by the FAA and shall so notify the Aviation Managers within 10 days following the date of its delivery to the named insured, such insurance as is afforded by this policy applies also to such other aircraft as of such delivery date provided; (a) It replaces any aircraft described in this policy, but only to the extent the insurance is applicable to the replaced aircraft, or; (b) It is an additional aircraft and the Company insures all aircraft owned by the named insured at such delivery date, but only to the extent the insurance is applicable to all such previously owned aircraft and only to the extent of the lowest limits of liability provided for each coverage and in the event a particular coverage is not provided for any other owned aircraft then said coverage shall not apply to the newly acquired aircraft. This Special Provision does not apply except during the policy period, but if such delivery date is prior to the effective date of this policy, the insurance applies as of such effective date. Nor does this Special Provision apply when an aircraft replaces a. replacement aircraft unless each replacement has been reported in the time and manner prescribed. The insurance on the replaced aircraft terminates upon delivery of the replacement aircraft. The named insured shall pay any additional premium required because of the application of the insurance to such other aircraft. III. USE OF OTHER AIRCRAFT —LIMITED. (Coverages A, B, C, D and E) This provision is not applicable if the approved uses under this policy include "Instruction and /or Rental ", "Charter Commercial" or "Commercial ". With respect to the named insured if one individual, and spouse of such individual if resident of the same household, either or both of whom own the aircraft described in the policy; (a) Such insurance as is afforded under Coverages A, B, C, D and E of this policy is extended to apply with respect to the use, by or on behalf of such named insured or spouse, of any fixed -wing, land plane having a "Standard" airworthiness certifi- cate issued by the FAA and provided it is not owned in full or in part by, not registered in the name of, not hired as a part of frequent use of hired aircraft or not furnished for regular use to such named insured or any member of the named insured's household or the insured against whom claim is made or suit is brought. (b) The insurance provided by this Special Provision shall apply only to such named insured and spouse and if either be a minor then the guardian of such minor. (c) The definition of "Insured" appearing under DEFINI- TIONS does not apply to this Special Provision and this Special Provision does not cover as an insured the owner of said other aircraft or any agent or employee of such owner. (d) The insurance provided by this Special Provision shall be excess over any other valid and collectible insurance available to the insured, either under a policy applicable with respect to the aircraft or otherwise, against a loss covered under this Special Provision. If such valid and collectible insurance shall have been written through the Aviation Managers, the applicable limit of liability under this policy shall be reduced by the applicable limit of liability under such other valid and collectible insurance. IV. POLICY PERIOD AND TERRITORY. This policy applies only to occurrences and loss happening during the policy period and within the United States of America, Canada or Mexico or while the aircraft is dismantled and being transported between ports thereof. EXCLUSIONS THIS POLICY DOES NOT APPLY AND NO COVERAGE IS AFFORDED: 1. To any insured who operates or permits the operation of the aircraft: (a) For any operation requiring a special permit or waiver from the FAA whether granted or not, or in violation of the operating limitations; (b) For any unlawful purpose, or any purpose or use including student instruction unless such uses are stated in the Declarations; (c) For any operation involving crop dusting, spraying, seeding, fertilizing, banner or glider towing, powerline or pipeline patrol, fish spotting, geological exploration or survey, any form of hunting or parachute jumping, unless such uses are expressly endorsed hereon. 2. To any insured while the aircraft is in flight: (a) If piloted by other than the pilot or pilots designated in the Declarations or endorsed hereon; (b) If piloted by a pilot not properly certificated, rated and qualified under the current applicable Federal Aviation Regula- tions for the operation involved whether said pilot is designated in the Declarations or endorsed hereon or not; (c) If its airworthiness certificate is not in full force and effect. 3. With respect to ionizing radiations or contamination by radioactivity; (a) To loss of, destruction of, or injury to any property whatsoever, or any loss or expense whatsoever resulting or arising therefrom; (b) To any legal liability of whatsoever nature caused or contributed to by or arising from any source thereof whatsoever. 4. To any liability assumed by the insured under any contract or agreement or to any loss or damage to the aircraft for which the insured has assumed the liability of others. 5. To any loss, damage or legal liability directly or indirectly occasioned by, happening through or in consequence of war, invasion, acts of foreign enemies, hostilities (whether war be declared or not), civil war, rebellion, revolution, insurrection, military or usurped power or confiscation or nationalization or requisition or destruction of or damage to property by or under the order of any government or public or local authority. 6. To any loss, or damage or legal liability due to any atomic or nuclear fission and /or fusion, or other like reaction or radioactive force or matter. Forgl 102 Rev. 3/75 (2 of 6) UNDER COVERAGES A, B, C AND D (BODILY INJURY AND PROPERTY DAMAGE) 7. Noise and Pollution and Other Perils Exclusion Clause A. To claims directly or indirectly occasioned by, happen- ing through or in consequence of: (1) noise (whether audible to the human ear or not), vibration, sonic boom and any phenomena associated therewith, (2) pollution and contamination of any kind whatso- ever, (3) electrical and electromagnetic interference, (4) interference with the use of property; unless caused by or resulting in a crash, fire, explosion or collision or a recorded in-flight emergency causing abnormal aircraft oper d �. o ZVith respect to any provision in the policy concerning any duty of the Company to investigate or defend claims, such provision shall not apply and the Company shall not be required to defend (1) claims excluded by Paragraph A or (2) a claim or claims covered by the policy when combined with any claims excluded by Paragraph A (referred to below as "Combined Claims "). C. In respect of any Combined Claims, the Company shall (subject to proof of loss and the limits of the policy) reimburse The insured for that portion of the following items which may be allocated to the claim or claims covered by the policy: (1) damages awarded against the insured and (2) defense fees and expenses incurred by the insured. D. Nothing herein shall override any radioactive contamina- tion or other exclusion clause attached to or forming part of this policy. UNDER COVERAGES A, C AND D (BODILY INJURY) B. To bodily injury to, sickness, disease or death of any employee of the insured while engaged in the employment of the insured or to any obligation for which the insured or any company as his insurer may be held liable under any Workmen's Compensation, Occupational Disease, Disability Benefit, Unem- ployment Compensation, Employers Liability, United States Longshoremen's and Harbor Workers Compensation Act, The Jones Act, Federal Employers Liability Act, Defense Bases Act; or any similar act, plan or law, whether state, federal or foreign. 9. To bodily injury to, sickness, disease, damage or death of any person who is a named insured, and if the named insured is an individual or individuals, their spouse(s) or damage to the N respective estates, resulting from their bodily injury, sickness, disease, damage or death. UNDER COVERAGES B AND D (PROPERTY DAMAGE) 10. To injury to or destruction of property, including loss of use thereof, owned by, rented to, occupied or used by, or in the care, custody or control of, or transported by the insured. UNDER COVERAGES F, G, H AND I (HULL) 11. To loss or damage due to conversion, embezzlement or secretion by any person in possession of the aircraft under a bailment, lease, conditional sale, purchase agreement, mortgage or other encumbrance, nor for any loss or damage during or resulting therefrom; 7� 12. To loss of use or depreciation however caused; 13. To robes, wearing apparel and other personal effects; 14. To loss or damage which is due and confined to wear and tear, deterioration, freezing, mechanical, structural, or electrical breakdown or failure, or to tires unless damaged by fire or stolen, unless any such loss or damage is the direct result of other physical damage covered by this policy; 15. To loss or damage to any aircraft equipped for ski or water landings and takeoffs unless said aircraft is described in the Declarations as a skiplane, seaplane or amphibian; 16. To any aircraft subject to any lien, conditional sale, mortgage or other encumbrance not specifically declared and described in this policy. DEFINITIONS "AVIATION MANAGERS" shall mean Southern Marine & Aviation Underwriters, Inc., or Southern Marine & Aviation, Inc. "EXECUTIVE TRANSPORT" corporate owned or leased aircraft used for the transportation of executives, employees, guests and customers, flown by professional pilots who are employed for this specific purpose only, but excluding all uses for which any compensation is received, is to be received, or was anticipated. "PLEASURE AND BUSINESS" personal, pleasure, family and business uses but excluding any use for which any compensation is received, is to be received, or was anticipated. "INDUSTRIAL AID" includes the uses enumerated in the definition of "Pleasure and Business' and also includes transpor- tation of executives, employees, guests and customers, but excluding any use for which any compensation is received, is to be received, or was anticipated. "COMPENSATION" shall mean any consideration exceeding, or greater than, the actual fuel cost and storage fees attributable to the particular flight involved. "SHARE EXPENSE FLIGHTS" shall be construed as "Pleasure and Business" uses provided that such sharing of expenses with the insured is limited to only the actual fuel cost and storage fees attributable to the particular flight involved. "INSTRUCTION AND /OR RENTAL" 'Pleasure and Business' uses and including the instruction of and /or rental to others for their "Executive Transport/ Industrial Aid /Pleasure and Business' uses only, but excluding all other uses for which any compensa- tion is received, is to be received, or was anticipated. "CHARTER COMMERCIAL" 'Pleasure and Business' uses and the transporting of passengers or freight for compensation but excluding all other uses for which any compensation is received, is to be received or was anticipated. "COMMERCIAL" includes all uses enumerated in the definitions of 'Pleasure and Business ", "Instruction and /or Rental" and "Charter Commercial ". "AIRCRAFT" shall mean the aircraft described herein, and shall include the engines, propellers, operation and navigation instru- ments and radio equipment usually attached to the aircraft, including component parts detached and not replaced by similar parts and tools therein which are standard for the make and type of aircraft. "PASSENGER" means any person or persons while in, or entering the aircraft for the purpose of riding or flying therein, or alighting therefrom during or following a flight or attempted flight therein. "FEDERAL AVIATION ADMINISTRATION" or "FAA" shall mean the duly constituted authority of the United States of America having jurisdiction over civil aviation. "OCCURRENCE" means an accident, or a continuous or repeated exposure to conditions, which results in injury and /or Form 102 Rev. 3/75 (3 of 6) damage during the policy period, provided the injury and /or damage is not expected or intended from the standpoint of the insured. All injury and /or damage arising out of such exposure to substantially the same general conditions shall be deemed to rise out of one occurrence. "ASSAULT AND BATTERY" shall be deemed an occurrence only if committed by or at the direction of the insured solely for the purpose of preventing dangerous interference with the operation of the aircraft or for the protection of the aircraft. "NAMED INSURED" means the individual, partnership, corpora tion or other entity whose name is stated in Item 1 of the Declarations. "INSURED" the unqualified term "insured" wherever used in this policy with respect to Coverages A, B, C and D shall include not only the Named Insured, but also any person while using or riding in the aircraft and any person or organization legally responsible for its use, provided the actual use is with the expressed permission of the named insured. The above mentioned coverages with respect to any person, or organization shall not apply to: (a) Any official or an employee of an insured with respect to bodily injury, sickness, disease, damage, or death of another official or employee of the same insured injured in the course of such employment in an occurrence arising out of the maintenance or use of the aircraft in the business of such insured; (b) Any person or organization, or any agent, or employee thereof (other than employees of the named insured while in the course and scope of such employment for the named insured) engaged in the manufacture or repair of aircraft, aircraft engines, aircraft parts or accessories, or in the operation of an aircraft electronic repair shop, airport, hangar, aircraft sales agency, airline, aircraft rental service, commercial flying service, air taxi or charter flying service, flying club or flying school with respect to any occurrence arising out of the manufacture or the operation thereof; (c) A student pilot or any person or organization renting or leasing the aircraft or anyone operating the aircraft with the actual or implied knowledge or consent of said student pilot, individual or organization renting or leasing the aircraft. "FLIGHT" shall mean the period from the time the aircraft moves forward in taking off or in attempting to take off until it has completed its landing and landing run after contact with the land or water. "DISAPPEARANCE" shall be deemed a loss under the flight provisions of this policy if the aircraft is missing and not reported for sixty days after commencing flight by the insured or his authorized agent. "TAXIING" shall mean while the aircraft is moving under its own power or momentum generated thereby other than while in flight. "FIRE" shall mean fire, lightning, explosion and self- ignition unless fire or explosion is caused directly or indirectly by collision of the aircraft with any object. "THEFT" shall mean theft, robbery or pilferage including damage to the aircraft done by thieves. "MOORING" shall mean while, on water, a water - alighting aircraft is anchored, or moored, or during launching onto or hauling up therefrom (except under its own power or momen- tum). "IN MOTION" shall mean while the aircraft is taxiing or in flight CONDITIONS APPLICABLE TO COVERAGES A, B, C AND D (BODILY INJURY AND PROPERTY DAMAGE): 1. NOTICE OF OCCURRENCE. When an occurrence takes place written notice shall be given by or on behalf of the insured to the Aviation Managers at their New Orleans, Louisiana office whose address appears herein as soon as practicable. Such notice shall contain particulars sufficient to identify the insured and also reasonably obtainable information respecting the time, place and circumstances of the occurrence, the names and addresses of the injured and of available witnesses. 2. NOTICE OF CLAIM OR SUIT. If claim is made or suit is brought against the insured, the insured shall immediately forward to the Aviation Managers at their New Orleans, Louisiana office whose address appears herein, every demand, notice, summons or other process received by him or his representative. 3. LIMITS OF LIABILITY. The limit of liability stated in the Declarations for Coverages A and C as applicable to "each person" is the limit of the Company's liability for all damages, including damages for care and loss of services, arising out of bodily injury, sickness or disease and, if arising out of the foregoing, mental anguish including death resulting therefrom, sustained by one person as the result of any one occurrence; the limit of such liability stated in the Declarations as applicable to "each occurrence" is, subject to the above provision respecting each person, the total limit of the Company's liability for all damages, including damages for care and loss of services, arising out of bodily injury, sickness or disease and, if arising out of the foregoing, mental anguish including death resulting therefrom, sustained by two or more persons as the result of any one occurrence. The limit of liability stated in the Declarations for Coverage B as applicable to "each occurrence" is the total limit of the Company's liability for all damages arising out of injury to or destruction of all property of one or more persons or organiza- tions, including the loss of use thereof as the result of any one occurrence. The limit of liability stated in the Declarations for Coverage D as applicable to "each occurrence" is the total limit of the Company's liability for all damages, including damages for care and loss of services arising out of bodily injury, sickness or disease and, if arising out of the foregoing, mental anguish including death resulting therefrom, sustained by one or more persons and all damages arising out of injury to or destruction of all property of one or more persons or organizations, including the loss of use thereof, as the result of any one occurrence. 4. SEPARATE INSUREDS. The insurance afforded under the coverages set forth above apply separately to each insured against whom claim is made or suit is brought, but the inclusion herein of more than one Insured shall not operate to increase the applicable limits of the Company's liability. 5. ACTION AGAINST COMPANY. No suit or action on this policy for recovery of any loss or claim shall be sustained in a court of law, or equity, unless as a condition precedent thereto, the insured shall have fully complied with all the terms of this policy, nor until the amount of the insured's obligation to pay shall have been finally determined either by judgment against the injured after actual trial or by written agreement of the insured, the claimant and the Company. Form 102 Rev. 3/75 (4 of 6) Any person or organization or the legal representative thereof who has secured such judgment or written agreement shall thereafter be entitled to recover under this policy to the extent of the insurance afforded by this policy. Nothing contained in this policy shall give any person or organization any right to join the Company as co- defendent nor shall the Company be impleaded by the insured or his legal representative in any action against the insured to determine the insured's liability. Bankruptcy or insolvency of the insured or of the insured's estate shall not relieve the Company of any of its obligations hereunder. 6. FINANCIAL RESPONSIBILITY LAWS. When this policy is certified as proof of financial responsibility for the future under the provisions of any aircraft financial responsibility law, such insurance as is afforded by this policy for the coverages set forth above shall comply with the provisions of such law to the extent of the coverage and limits of liability required by such law, but in no event in excess of the limit of liability stated in this policy. The insured agrees to reimburse the Company for any payment made by the Company which it would not have been obligated to make under the terms of this policy except for the agreement contained in this paragraph. APPLICABLE TO COVERAGE E (MEDICAL PAYMENTS): 7. MEDICAL REPORTS: PROOF AND PAYMENT OF CLAIM. As soon as practicable the injured person or someone on his behalf shall give to the Company written proof of claim, under oath if required, and shall, after each request from the Company, execute authorization to enable the Company to obtain medical reports and copies of records. The injured person shall submit to physical examination by a physician selected by the Company when and as often as the Company may reasonably require. The Company may pay the injured person or any person or organization rendering the services and such payment shall reduce the amount payable hereunder for such injury. Payment here- under shall not constitute admission of liability of the insured, or except hereunder, of the Company. 8. LIMIT OF LIABILITY. The limit of liability stated in the Declarations as applicable to "each person" is the limit of the Company's liability for all expenses incurred by or on behalf of each person who sustains bodily injury in any one occurrence. The limit of liability as stated in the Declarations for Coverage E as applicable to "each occurrence" is subject to the above provision respecting each person, the total limit of the Company's liability for all expenses incurred by or on behalf of two or more persons who sustain bodily injury in any one occurrence. 9. ACTION AGAINST COMPANY. No action shall lie against the Company unless, as a condition precedent thereto, there shall have been full compliance with all the terms of this policy, nor until 60 days after the required proofs of claim have been filed with the Company. 10. OTHER INSURANCE. With respect to Special Provisions II and III only, the insurance afforded by Coverage E shall be excess insurance over any other valid and collectible Medical Payments insurance applicable thereto. APPLICABLE TO COVERAGES F. G, H AND I (HULL) 11. INSUREDS DUTIES WHEN LOSS OCCURS. When loss occurs, the insured shall: (a) protect the aircraft, provided the insured is able to do so, whether or not the loss is covered by this policy, and any further loss due to the insured's failure to protect shall not be recoverable under this policy; reasonable expense incurred in affording such protection shall be deemed incurred at the Company's request; (b) give notice thereof as soon as practicable to the Aviation Managers, and also, in the event of theft, to the police, but shall not, except at his own cost, offer or pay any reward for recovery of the aircraft; (c) file proof of loss with the Aviation Managers or the Company within 60 days after the occurrence of loss, unless such time is extended in writing by the Aviation Managers or the Company in the form of a sworn statement by the insured setting forth the interest of the insured and of all others in the property affected, any encumbrances thereon, the actual cash value thereof at time of loss, the amount, place, time and cause of such loss and the description and amounts of all other insurance covering such property. (d) cooperate with the Aviation Managers and the Company and upon the Aviation Managers' or the Company's request shall assist in the recovery of property insured hereunder either by means of replevin proceedings or otherwise in effecting settle- ment, securing evidence, obtaining attendance of witness and prosecuting suits to such an extent and in such a manner as is deemed desirable by the Aviation Managers or the Company. Any such act or acts of the insured, the Aviation Managers or the Company, or their agents including recovering, saving or pre- serving the property described herein shall be construed as having been done for the benefit of all concerned and without prejudice to the rights of either party and where loss or damages suffered constitute a claim under this policy, then all reasonable expenses thus incurred shall also constitute a claim under this policy. Upon the Aviation Managers or the Company's request the insured shall exhibit the damaged property to the Aviation Managers or the Company and submit to examinations under oath by anyone designated by them, subscribe to same, and produce for their examination all pertinent records, log books, and sales invoices or certified copies if originals be lost, permitting copies thereof to be made, all at such reasonable times and places as the Aviation Managers or the Company shall designate. 12. LIMIT OF LIABILITY: NO ABANDONMENT. The limit of the Company's liability for direct physical loss of or direct physical damage to the aircraft shall be: (a) in case of total loss, the amount of insurance as stated in the Declarations less the applicable deductible; (b) in case of partial loss if repairs are made by a named insured, the total of the following items less the applicable deductible: (1) the named insured's costs for necessary material and parts of like kind and quality, (2) wages paid for labor at current straight time rates at the place of repair with no premium for overtime, plus 50% of such wages as an allowance for overhead and supervision, (3) cost of transportation; (c) if repairs are made by other than a named insured, the net cost to the named insured, excluding all premium charges for overtime, to repair the aircraft with material and parts of like kind and quality, and cost of transportation, less the applicable deductible; (d) whenever the Company pays a claim in an amount equal to the sum payable for a total loss, it shall at its option be entitled to all salvage value. There shall, however, be no abandonment of the aircraft to the Company without its consent; (e) the liability of the Company shall in no event, for any purpose hereunder, exceed the amount of insurance applicable to the aircraft less the applicable deductible. Form 102 Rev. 3/75 (5 of 6) 13. COST OF TRANSPORTATION. The cost of transporting new or damaged parts or of transporting the damaged aircraft to the place of repair and return to place of accident or home` airport, whichever be the nearer, shall be limited to the least expensive method of reasonable transportation. In case of loss arising outside the Continental limits of the United States of America, or arising in Alaska or Hawaii, the limit of the Company's liability for salvaging the aircraft including the transportation thereof and /or the transportation of new or damaged parts to the place of repair and return to the place of accident or home airport, whichever be the nearer, shall be limited to the least expensive method of reasonable transporta. tion, but in no event shall exceed 15% of the claim otherwise payable. 14. APPRAISAL. If the named insured and the Company fail to agree as to the amount of loss, each shall, on the written demand of either, made within 60 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 15 days to agree upon such umpire, then, on the request of the named insured or the Company, such umpire shall be selected by a judge of a court of record in the county and state in which such appraisal is pending. The appraisers shall then appraise the loss, stating separately the actual cash value at the time of loss and the amount of loss, and failing to agree shall submit their differences to the umpire. An award in writing of any two shall determine the amount of loss. The named insured and the Company shall each pay his or its chosen appraiser and shall bear equally the other expenses of the appraisal and the umpire. The Company shall not be held to have waived any of its rights by any act relating to appraisal. 15. AUTOMATIC REINSTATEMENT. In the event of loss, whether or not covered by this policy, the amount of insurance in respect to any aircraft shall be reduced as of the time and date of loss by the amount of such loss and such reduced value shall continue until repairs are commenced when the amount of insurance shall automatically be increased by the value of the completed repairs until the original amount of insurance is fully reinstated or the policy has expired. 16. PAYMENT FOR LOSS: ACTION AGAINST COMPANY. Payment for loss shall not be required nor shall any suit or action on this policy for recovery of any loss or claim be sustainable in a court of law or equity unless, as a condition precedent thereto, the named insured shall have fully complied with all the terms of this policy, nor until 60 days after proof of loss is filed and the amount of loss is determined as provided in this policy nor at all unless commenced within 12 months after the physical happening of the occurrence which gave rise to the loss or claim. 17. RIGHTS AGAINST THIRD PARTIES. The Hull Coverage afforded under this policy shall not inure directly or indirectly to the benefit of any third party. Any act or agreement by the named insured whereby any right of the named insured to recover the full value of, or amount of damage to, any property lost or damaged and insured hereunder, from any third party liable therefor, is released, impaired or lost, shall relieve the Company from any liability under this policy for or on account of any such loss or damage, but the Company's right to retain or recover the premium shall not be affected. APPLICABLE TO ALL COVERAGES: 18. ASSISTANCE AND COOPERATION OF THE INSURED. The insured shall cooperate with the Aviation Managers and the Company and, upon their request, shall attend hearings and trials and shall assist in effecting settlements, securing and giving evidence, obtaining the attendance of witnesses and in the conduct of suits. The insured shall not, except at his own cost, make any payment, assume any obligation or incur any expense other than for such immediate medical and surgical relief to others as shall be imperative at the time of an occurrence or as provided under Condition 11, subparagraph (a). 19. ACTION AGAINST THE INSURED. The Aviation Managers shall have the power to institute and maintain suits in its own name, or the name of the Company, against the named insured for non - payment of premium, or for breach of any other obligation arising from or by reason of this insurance, and any judgment so obtained or release or receipt by the Aviation Managers or the Company shall be binding upon the Aviation Managers and the Company. 20. INSPECTION AND AUDIT. Any duly authorized represen- tative of the Aviation Managers or the Company shall be permitted to inspect the aircraft, all applicable log books and aircraft records, and to examine the insured's books and records, relating thereto at any time during the policy period and within one year after the final termination of this policy or until final settlement of all claims hereunder. whichever is later. 21. SUBROGATION. Except in respect to Coverage E, if the Company becomes liable for any payment under this policy in respect of loss, damage or liability the Company shall be subrogated, to the extent of such payment, to all the rights and remedies of the insured against any party in respect of such loss, damage or liability and shall be entitled at their own expense to sue in the name of the insured. The insured shall give to the Company all such assistance in his power as the Company may require to secure their rights and remedies, and at the Company's request, shall execute all documents necessary to enable the Company effectively to bring suit in the name of the insured including the execution and delivery of the customary form of loan receipt. It is further agreed that such action by the Company need not include the applicable deductible, except when requested by the insured in writing. The insured shall do nothing to prejudice such rights. 22. OTHER INSURANCE. Except with respect to insurance specifically purchased by the named insured to apply in excess of this policy, if there is other insurance, in the insured's name or otherwise, against loss, liability or expense covered by this policy, the Company shall not be liable under this policy for a greater proportion of such loss, liability or expense than the applicable limit of the Company's liability as stated in the Declarations of this policy, bears to the total applicable limit of liability of all valid and collectible insurance against such loss, liability or expense, provided however, that with respect to Special Pro- visions II & 111, of this policy, this insurance shall be excess insurance over any other valid and collectible insurance available to the insured, either as an insured under a policy applicable with respect to the aircraft or otherwise and, if such other insurance available to the insured shall have been written through the Aviation Managers, the limit of the Company's liability applicable Fort- 102 Rev. 3/75 (6 of 6) to such loss under this policy shall be reduced by the appl! cable limit of liability under such other available insurance. 23. CHANGES. Notice to any agent or knowledge possessed by any agent or by any other person shall not effect a waiver or a change in any part of this policy or estop the Company from asserting any right under the terms of this policy; nor shall the terms of this policy be waived or changed, except by endorse- ment issued to form a part hereof signed by the Aviation Managers. 24. ASSIGNMENT. Assignment of interest under this policy shall not bind the Company until its consent is endorsed hereon by the Aviation Managers; if, however, the named insured shall die within the policy period, this policy, unless canceled, shall, provided written notice be given the Aviation Managers within 60 days, after the date of such death, apply to his legal representa- tives as the named insured. 25. CANCELLATION. This policy may be canceled by the named insured by surrender thereof to or by mailing to the Aviation Managers written notice stating when thereafter the cancellation shall be effective. This policy may be canceled by the Company or the Aviation Managers by mailing to the named insured at the address shown in this policy written notice stating when not less than 10 days thereafter such cancellation shall be effective. The mailing of notice as aforesaid shall be sufficient proof of notice. The time of the surrender or the effective date and hour of cancellation stated in the notice shall become the end of the policy period. Delivery of such written notice either by the named insured, the Company or the Aviation Managers shall be equivalent to mailing. If the named insured cancels, earned premium shall be computed in accordance with the customary short rate table and procedure. If the Company or the Aviation Managers cancel, earned premium shall be computed pro rata. Premium adjustment may be made either at the time cancellation is effected or as soon as practicable after cancellation becomes effective, but payment or tender of unearned premium is not a condition of cancellation. The Company shall not be liable for any return premium in respect to an aircraft on which a total loss has been paid. 26. FRAUD OR MISREPRESENTATION. This policy shall be void if the named insured has concealed or misrepresented any material fact or circumstance concerning this insurance or the subject thereof or in case of any fraud, attempted fraud or false swearing by the named insured touching any matter relating to this insurance or the subject thereof, whether before or after a loss. 27. DECLARATIONS. By acceptance of this policy the named insured affirms that the statements in the Declarations are his agreements and representations and the named insured acknowl- edges that this policy is issued in reliance upon the truth of such representations and that this policy embodies all agreements existing between himself and the Aviation Managers, the Com- pany, or any of their agents relating to this insurance. 00 so SOUTHERN MARINE & AVIATION HOME OFFICE 610 POYDRAS ST., 15047 524 -4131 NEW ORLEANS 70130 BRANCH OFFICES 3200 Wilshire Boulevard 1770 Saint James Place (213) 385 -8436 (713) 627.9720 Los Angeles, California 90010 Houston, Texas 77027 10 Corporate Square Office Park (404) 321 -1660 Atlanta, Georgia 30329 305 Park Tower Bldg., 5200 S. Yale (918) 664 -0101 Tulsa, Oklahoma 74135