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HomeMy WebLinkAboutC-2854 - City Animal ShelterADDENDUM TO SHELTER CONTRACT The parties to the Shelter Contract agree that Section 7(a) of the contract shall be amended to read as follows: SPAY NEUTER DEPOSITS. If a dog or cat is adopted from the shelter by a person who had no previous interest in the dog or cat, Veterinarian will collect from said person a spay/neuter deposit as provided by, and in compliance with, Sections 30503(b) and 31751.3(b) of the Food and Agriculture Code. The spay/neuter deposit shall be no less or no more than the amounts set by these Codes. DATED: 5 �449 D2. DATED: F:\users\cat\shared\cp\CyndMan\letter\ShelterContract.doc BY Ci(y of Newport B ch BY �. ANIMAL CONTROL AGREEMENT THIS AGREEMENT, is made and entered into, effective the 1st day of May , 2001, by and between the CITY OF NEWPORT BEACH, a municipal corporation, hereinafter referred to as "City", DOVER SHORES PET CARE CENTER, a California corporation, at 2075 Newport Boulevard, Costa Mesa, California 92627, hereinafter referred to as "Veterinarian." WITNESSETH: WHEREAS, under its Municipal Code, the City of Newport Beach is obligated to impound and keep fowl and animals found running at large; and WHEREAS, the Code requires the licensing and vaccination of dogs kept within the City; and WHEREAS, City does not have facilities suitable for impounding and keeping fowl, dogs, cats or other animals; and WHEREAS, Veterinarian has facilities for receiving and caring for fowl and animals that may be picked up running at large on the City streets, NOW, THEREFORE, the parties agree: 1. Animal Care. Veterinarian agrees to receive and care for any dog, cat, bird, fowl, or animal other than a horse, cow, or animal too large to be cared for in his facilities (hereinafter referred to collectively as "animal"), that is delivered to him by the City. 2. Inspection Hours. Visitors shall be permitted to view all impounded animals during normal inspection hours. Normal inspection hours shall include either a Saturday or one evening a week (except weeks with holidays). Shelter shall permit visitor viewing of impounded animals at least thirty-five (35) hours a week (except weeks with holidays). Inspection hours shall be posted so as to be easily observable at the front exterior of the shelter. a) The Shelter will be closed on the following holidays and their extensions: Holiday Holiday Description Independence Day July 4 Labor Day 1St Monday in September Veteran's Day November 11 Thanksgiving Day 4th Thursday in November Christmas Eve' 1/2 Day Christmas Day December 25 New Year's Eve 1/2 Day New Year's Day January 1 President's Day 3`d Monday in February Memorial Day Last Monday in May Holidays occurring on a Sunday shall be observed the following Monday. b) The normal animal inspection hours will be: Tuesday through Friday 10:00 AM to 5:00 PM Monday and Saturday 10:00 AM to 3:00 PM Sunday — Closed c) Veterinarian may change the specific times of the normal inspection hours with the written consent of the Patrol / Traffic Division Commander of the City Police Department, as long as the minimum viewing hours requirement as stated in paragraph 2 "Inspection Hours" is met. 3. Holding Period. Unless claimed by the owner sooner, Veterinarian will hold any animal delivered to him for the following periods: a) All animals shall be held a minimum of four days. Said holding period does not include the day of impoundment. At the discretion of the Animal Control 2 Officer, if any animal bears identification, said animal shall be held for six (6) days. This six (6) day period shall not include any day the shelter is closed. b) Sundays, holidays or any other day the Shelter is closed shall not accrue to the holding period. c) The holding period will not apply if the Veterinarian or Animal Control Officer determines the individual circumstances to be extraordinary (e.g. suffering irremediably, wild, vicious, dangerous to humans, rabid, etc.) d) For the purposes of the "Holding Period', "Animal" means any dog, cat, rabbit, guinea pig, hamster, pot-bellied pig, bird, lizard, snake, turtle or tortoise legally allowed as personal property. 4. Disposition of Impounded Animals. After the holding period, Veterinarian may dispose of an animal either by selling it in accordance with the terms of Section 1208.5 of the Code of Civil Procedure, or by destroying it in accordance with Sections 7.16.020 and 7.16.060 of the Newport Beach Municipal Code, and any applicable State Law. Or, Veterinarian may place the animal in his Pals for Pets adoption program, and attempt to adopt said animal on a best effort basis. Animals that are scheduled for euthanasia, which are not considered extraordinary circumstances, may, at the request of any 501 (c) (3) Internal Revenue Code animal rescue or adoption organization, be released to said organization subject to standard fees. 5. Fees for Services. Upon redeeming an animal, the owner must pay all fees accrued, including boarding, medical treatment, vaccination, safekeeping and/or quarantine fees. Veterinarian shall collect from owner the impound fees and dog license fees established by Resolution of the City Council. a) (1) Boarding Fees. Veterinarian shall retain a boarding fee for each day, or part thereof, an animal is in his care. Boarding fees shall be established by Resolution of the City Council. Veterinarian shall collect from the owner said Boarding Fees for all impounded animals when they are claimed. c a) (2) Veterinarian shall bill the City monthly for the boarding fees of all animals delivered to him by the City, which were not claimed by their owners. b) Safekeeping Fees. Safekeeping fees shall be established by Resolution of the City Council. c) Quarantine Fees. Quarantine fees shall be established by Resolution of the City Council. d) Rabies Vaccination Fee. In the event Veterinarian is required to dispense an inoculation against rabies to any Animal delivered by City, Veterinarian shall charge a fee established by Resolution of the City Council for the inoculation. The fee shall be collected from the owner or any other person to whom the Animal is sold or delivered. 6. Adoptions. Veterinarian shall, on a best effort basis, attempt to adopt all animals in his care that are suitable for adoption. During the holding period, if an animal is adopted by a person or organization that had no previous interest in the Animal, Veterinarian will collect from said person or organization an adoption fee established by Resolution of the City Council. Said adoptions for dogs and cats shall include one set of basic health vaccinations [(dogs-DHLPP) (cats-FVRCPC)], rabies vaccination, physical examination and spaying, neutering, or a certificate of sterility as appropriate. 7. Spay and Neuter. All dogs and cats adopted during the holding period shall be spayed or neutered as required by applicable State law. Surgery shall be performed at the sole discretion of Veterinarian in compliance with the California Veterinary Practice Act. If a dog or cat is unable to be spayed or neutered for medical reasons at the time of adoption, Veterinarian shall collect a refundable deposit: 4 a) Spay Neuter Deposits. If a dog or cat is adopted from the shelter by a person who had no previous interest in the dog or cat, Veterinarian will collect from said person a spay/neuter deposit as provided by, and in compliance with, Sections 30503 and 31751 of the Food and Agriculture Code. The spay/neuter deposit shall be a maximum of seventy-five dollars ($75) for dogs and thirty dollars ($30.00) for cats. b) Spay Neuter Deposit Refunds. Pet owners may reclaim their deposit from Veterinarian by presenting a certificate of sterilization, along with a receipt for the surgery, within the prescribed period. An accounting of spay/neuter deposit collections and refunds shall be made to the City Revenue Manager monthly. 8. Special Handling. In the course of providing animal control services, both parties acknowledge that situations arise that are neither predictable nor routine. Veterinarian shall, on a best efforts basis, provide any and all services that the City requests of him. Fees for these services will be determined by Veterinarian on an individual basis and will be billed to the City monthly subject to approval by the Animal Control Officer. Said services shall include but not be limited to the following: long term hold for trial, boarding and/or treating exotic and/or unusual pets, Penal Code Section 597 necropsies, Penal Code Section 597 abuse, and other forensic issues. 9. Emergency Medical Treatment. In the event Veterinarian is required to perform emergency services and / or medical treatment for any injured animal delivered to him by City, the fee for said services shall be collected from the owner to whom said animal is delivered. Or, in the case of an adopted animal or an unclaimed animal destroyed or disposed of by Veterinarian pursuant to this Contract, City shall pay such fee. However, Veterinarian shall not charge the City a fee that exceeds one hundred dollars ($100.00) for emergency care, or fifty dollars ($50.00)_in case of non -emergency medical treatment. 5 10. Shelter Coordinator. Veterinarian will provide a designated Shelter Coordinator whose duties will be dedicated to the operations of the shelter a minimum of twenty (20) hours per week. Said duties will include: public information, public relations, coordinating shelter activities with the veterinary hospital, coordinating shelter activities with the City, facilitating information exchange between the shelter and the City, and presentation of monthly reports and statistics regarding shelter operations. 11. FEES. Base Contract Fee. City shall pay Veterinarian a fee for costs associated with clerical services, euthanasia, disposal, salaries, and other operating costs pertaining to animal impound services. Veterinarian will bill City on a monthly basis, for these costs as accrued under this base contract fee, an amount not to exceed Three thousand five hundred forty four dollars and eighty two cents ($ 3,544.82). Boarding Fees. City shall pay Veterinarian a fee for animal boarding services. Veterinarian will bill City, on a monthly basis, a fee for each animal impounded pursuant to this contract which is neither claimed by an owner nor adopted during the holding period. Said fee shall not exceed seventy dollars ($70.00) per Animal. In the case of small snakes, small birds, guinea pigs, hamsters, and similar Animals, which may require less care than the average dog or cat, said fee shall not exceed forty-five dollars ($45.00) per animal Spay and Neuter Fees. City shall pay Veterinarian a fee for spaying and neutering. Veterinarian will bill the City a fee for spaying or neutering all adoptable cats and dogs, leaving the Shelter, other than with the original owner, as required by State Law, of $98 per animal. Biennial Adjustment. Said base contract fee, emergency and non -emergency medical fee cap, City boarding fee cap and spay and neuter fee shall be adjusted biennially on July 1St , beginning in 2002, to reflect the percentage change in the cost of doing business as measured by the Consumer Price Index (Los Angeles - Anaheim -Riverside). Charges For Service. Veterinarian agrees to charge and collect fees for service as established by Resolution of the City Council of the City of Newport Beach. 12. Continuing Education. Both parties agree that from time to time a designated individual employed at the Shelter will be called upon to attend educational meetings and/or to represent the Shelter at locations other than the shelter proper. City shall provide funds not to exceed six hundred dollars ($600.00) per year for actual costs associated with continuing education. In addition, 144 hours of paid salary shall be budgeted for the same year to be applied to the actual time said employee is involved with the activity. Veterinarian shall bill City the hourly rate to which the employee is entitled plus 25% of said rate. 13. Record Keeping. Veterinarian shall keep records to show the date each animal is delivered to him by City, the time it is kept, the disposition of it, the amount of fees or charges collected from the owner or person to whom it is sold or delivered. These records shall be open and available for inspection by City. All revenues from City dog license, the unclaimed spay and neuter deposits, and fifty percent of impound fees, collected by Veterinarian shall be remitted to City monthly. All other fees shall be retained by Veterinarian. Veterinarian understands City can claim reimbursement for certain costs from the State of California under SB -90 and agrees to collect and keep all records identified by the Revenue Manager necessary for filing such claim during the normal course of business. Veterinarian also agrees to provide copies of identified records within 10 working days of request. City agrees to compensate Veterinarian for reasonable costs associated with recreating records Veterinarian was not previously directed to maintain. 14. Monthly Billing. At the end of each month, Veterinarian shall bill the City for the charges that have accrued during such month pursuant to this Contract. These shall include the base contract fee, boarding fees (less those boarding fees already collected from owners who have claimed impounded animals), special handling fees, emergency and / or medical treatment, fees for spaying and neutering dogs and cats, and other expenditures including, but not limited to, medical supplies for City, Shelter -equipment, printing forms, etc. as approved by the Senior Animal Control Officer. 15. Standard of Practice. Both parties acknowledge that Veterinarian and the facility (Dover Shores Pet Care Center) engaged for use under this Contract are both fully licensed and regulated by the authority given the California Department of Consumer Affairs' State Board of Veterinary Medicine under the Veterinary Practice Act. Veterinarian shall be required to insure that both the facility, and the standard of veterinary medicine practiced at said facility, are in full compliance with the California Veterinary Practice Act. 16. Indemnification. Veterinarian agrees to indemnify, defend, save and hold harmless City, its City Council, boards and commissions, officers and employees from and against any and all loss, damages, liability, claims, suites, costs and expenses for damages of any nature whatsoever, including, but not limited to, bodily injury, death, personal injury, property damages, attorneys fees and court costs arising from any and all negligent action of Veterinarian, its employees, agents or subcontracts in the performance of services or work conducted or performed pursuant to this Agreement. 17. Insurance. Without limiting Veterinarian's indemnification of City, Veterinarian will obtain and maintain at its own expense during the term of this Agreement policy or policies of professional liability insurance. The City shall be named as additional insured under the general liability/premise liability policy. The policy or policies shall contain provisions requiring City to receive at least thirty (30) days written notice prior to the expiration, cancellation, or any material change in the provisions of any policy or policies of insurance. Veterinarian shall obtain liability insurance policies with $2 million coverage (per occurrence) for general liability/premise liability and $1 million coverage (per occurrence) for malpractice. Such policies shall be signed by a person authorized by that insurer to bind coverage on its behalf and must be filed with the City prior to performing any work pursuant to this Agreement. Veterinarian shall also maintain and obtain worker's compensation insurance covering all employees in amounts required by, and in compliance with, laws of the State of California. 18. Inspection. City reserves the right to allow a representative of the Newport Beach Police Department to enter the premises at any reasonable time to inspect the same or any part thereof and to attend to or protect the City's interest with a procedure to terminate the Agreement if unsatisfactory conditions exist. 19. Term. The term of this Agreement shall commence on 5/ l /01, and shall continue thereafter; provided, however, that this Agreement may be terminated by either party, without cause, by giving one hundred twenty (120) days' prior written notice to the other party. 20. Arbitration. The parties agree that they will endeavor to resolve any dispute, controversy or claim arising out of or relating to the agreement. In the event the parties are unable to do so, any dispute, controversy or claim shall be finally settled by arbitration. The parties shall meet and confer on the procedures to be used in arbitration. Any award or judgment rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof. 21. Sole Agreement. Both parties acknowledge that this contract is the sole agreement between the two parties. Said agreement supercedes any and all previous agreements between the two parties. 22. Notices. All notices, demands, requests or approvals to be given under this Agreement shall be given in writing and conclusively shall be deemed served when delivered personally or on the second business day after the deposit thereof in the United States mail, postage prepaid, registered or certified, addressed as hereinafter provided. All notices, demands, requests or approvals from Veterinarian to City shall be addressed to City at : City of Newport Beach 3300 Newport Boulevard, P.O. Box 1768 Newport Beach, CA 92659-1768 Attention: City Manager All notices, demands, requests or approvals from City to Veterinarian shall be addressed to Veterinarian at: Dover Shores Pet Care Center 2075 Newport Boulevard Costa Mesa, CA 92627 Attention: Bruce Bauersfeld, DVM IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first written above. CITY OF NEWPORT BEACH Municipal Corporation By: City Manager BAUERSFELD ENTERPRISES LTD. DOVER SHORES PET CARE CENTER A California Corporation By4ceBauersfeld, Br D. . APPROVED AS TO FORM: CITY ATTORNEY ATTEST: -r Maj CITY CLERK Xi ANIMAL CONTROL AGREEMENT THIS AGREEMENT, is made and entered into, effective the day of 1997, by and between the CITY OF NEWPORT BEACH, a municipal corporation, hereinafter referred to as "City," and Veterinarian Pet Care Center of Dover Shores, Bruce C. Bauersfeld, D.V.M., Director, at 2075 Newport Boulevard, Costa Mesa, California 92627, hereinafter referred to as "Veterinarian." WITNESSETH: WHEREAS, under its Municipal Code, the City of Newport Beach is obligated to impound and keep fowl and animals found running at large; and WHEREAS, the Code requires the licensing and vaccination of dogs kept within the City; and WHEREAS, City does not have facilities suitable for impounding and keeping fowl, dogs, cats or other animals; and WHEREAS, Veterinarian has facilities for receiving and caring for fowl and animals that may be picked up running at large on the City streets, NOW, THEREFORE, the parties agree: 1. Veterinarian agrees to receive and care for any dog, cat, bird, fowl, or animal other than a horse, cow, or animal too large to be cared for in his facilities (hereinafter referred to collectively as "animal"), that is delivered to him by the City. 2. Visitors shall be permitted to view all impounded animals during normal inspection hours of 9:00 a.m. to 6:00 p.m. on Monday, through Friday; 9:30 a.m. to 3:00 p.m. on Saturday. 3. Unless claimed by the owner sooner, Veterinarian will hold any animal delivered to him for the following periods: (a) If any animal does not bear identification, said animal shall be held for a minimum of five days. This claim period shall not include the days the 1 shelter is closed. (b) If any animal bears identification, said animal shall be held for six (6) days. This six (6) day period shall not include any day the shelter is closed. In addition, Veterinarian shall keep any animal, licensed or unlicensed, an additional twenty-four (24) hours after the claim period, at the discretion of the impounding Animal Control Officer. 4. After the claim period, Veterinarian will dispose of an animal either by selling it in accordance with the terms of Section 1208.5 of the Code of Civil Procedure, or by destroying it in accordance with Sections 7.16.020 and 7.16.060 of the Newport Beach Municipal Code, and any applicable State Law. 5. Upon redeeming an animal, the owner must pay all accrued impound, boarding, safekeeping and/or quarantine fees. Boarding and safekeeping fees shall not exceed Nine Dollars ($9) per day per animal. Quarantine fees shall not exceed Fifteen Dollars ($15) per day per animal. Veterinarian shall charge only the impound fees established by Resolution of the City Council for animals delivered to him by the City for impounding. 6. If an animal is purchased by a person who had no previous interest in the animal, Veterinarian will collect from said person accrued boarding fees not to exceed Forty-five Dollars ($45.00). If a dog or cat is purchased from the shelter by a person who had no previous interest in the dog or cat, Veterinarian will collect from said person a spay/neuter deposit as provided by, and in compliance with, Sections 30503 and 31751 of the Food and Agriculture Code. The spay/neuter deposit shall be Ten Dollars ($10) for felines and Twenty Dollars ($20) for canines. All money collected pursuant to Section 30503 shall be held by Veterinarian in a separate account, for the required periods of time. An accounting of spay/neuter deposit collection and refunds with payment of uncollected deposits shall 2 be made to the Revenue Manager monthly. Pet owners may reclaim their deposit from Veterinarian by presenting a certificate of sterilization along with a receipt for the surgery within the prescribed period. 7. In the event Veterinarian is required to dispense an inoculation against rabies to any animal delivered by City, Veterinarian shall charge a fee of not more than Twelve Dollars ($12.00) for the inoculation. The fee shall be collected from the owner or any other person to whom the animal is sold or delivered. 8. In the event Veterinarian is required to perform emergency services for any injured animal delivered to him by City, Veterinarian shall charge the City a fee of not more than forty-seven Dollars and Fifty Cents ($47.50) for said services. The fee shall be collected from the owner to whom said animal is delivered; or, in the case of an adopted animal or an unclaimed animal destroyed or disposed of by Veterinarian pursuant to this Contract, City shall pay such fee. 9. City shall pay Veterinarian a fee to defray clerical, euthanasia, disposal and other operating costs associated with the animal impound services. Veterinarian will bill City on a monthly basis for its actual costs not to exceed Two Thousand Nine Hundred Twenty Eight and Fifty One Cents ($2,928.51) per month. Said fee shall be annually adjusted each March to reflect the percentage change in the cost of doing business as measured by the Consumer Price Index (Los Angeles -Anaheim -Riverside). Veterinarian agrees that in consideration for the above monthly charge, it will hire an additional shelter employee whose duties will be dedicated to the operations of the shelter and which will include, but are not limited to, issuing dog licenses, provided public information, clerical duties and paperwork regarding the operations of the shelter, cleaning and feeding of animals housed in the shelter, along with the showing of the shelter to visitors during the hours the shelter is open for such purposes. 10. Veterinarian shall keep records to show the date each animal is delivered 3 to him by City, the time it is kept, the disposition of it, and the amount of fees or charges collected from the owner or person to. whom it is sold or delivered. These records shall be open and available for inspection by City. All fees or charges, except dog license revenues and fifty percent of impound fees, collected by Veterinarian shall be retained by him. Dog license revenues, fifty percent of impound fees and uncollected spay/neuter deposits shall be turned over to City on a monthly basis. 11. At the end of each month, Veterinarian shall bill the City for the charges of boarding, destroying, and disposing of animals which have accrued during such month pursuant to this Contract. City shall pay the same within fifteen (15) days after the receipt thereof. 12. Veterinarian agrees to indemnify, defend, save and hold harmless City, its City Council, boards and commissions, officers and employees from and against any and all loss, damages, liability, claims, suites, costs and expenses for damages of any nature whatsoever, including, but not limited to, bodily injury, death, personal injury, property damages, attorneys fees and court costs arising from any and all negligent action of Veterinarian, its employees, agents or subcontracts in the performance of services or work conducted or performed pursuant to this Agreement. 13. Without limiting Veterinarian's indemnification of City, Veterinarian will obtain and maintain at its own expense during the term of this Agreement policy or policies of professional liability insurance. The City shall be named as additional insured under the policy or policies of insurance. The policy or policies shall contain provisions requiring City to receive at least thirty (30) days written notice prior to the expiration, cancellation, or any material change in the provisions of any policy or policies of insurance. Such policies shall be signed by a person authorized by that insurer to bind coverage on its behalf and must be filed with the City prior to performing any work pursuant to this Agreement. Veterinarian shall also maintain and obtain worker's compensation insurance covering all employees in amounts required by, and 4 in compliance with, laws of the State of California. 14. City reserves the right to allow a representative of the Newport Beach Police Department to enter the premises at any reasonable time to inspect the same or any part thereof and to attend to or protect the City's interest with a procedure to terminate the Agreement if unsatisfactory conditions exist. 15. The term of this Agreement shall commence on re AC, , 1997, and shall continue thereafter; provided, however, that this Agreement may be terminated by either party, without cause, by giving one hundred twenty (120) days' prior written notice to the other party. 16. All notices, demands, requests or approvals to be given under this Agreement shall be given in writing and conclusively shall be deemed served when delivered personally or on the second business day after the deposit thereof in the United States mail, postage prepaid, registered or certified, addressed as hereinafter provided. All notices, demands, requests or approvals from Veterinarian to City shall be addressed to City at : City of Newport Beach 3300 Newport Boulevard, P. O. Box 1768 Newport Beach, CA 92659-1768 Attention: City Manager All notices, demands, requests or approvals from City to Veterinarian shall be addressed to Veterinarian at: Dover Shores Pet Care Center 2075 Newport Boulevard Costa Mesa, CA 92627 Attention; Bruce Bauersfeld, DVM IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first written above. CITY OF NEWPORT BEACH A Municipal Corporation By: ZQ� j fl on I ATTEST: CITY CLERK :` .at\debbie\ag\bauersf.doc VETERINARIAN PET CARE CENTER OF DOVER SHORES Bruce C. Bauersfold, D.V.M. Director ANIMAL CONTROL AGREEMENT THIS AGREEMENT, is made and entered into, effective the 1st day of March, 1991, by and between the CITY OF NEWPORT BEACH, a municipal corporation, hereinafter referred to as "City," and Veterinarian Pet Care Center of Dover Shores, Bruce C. Bauersfeld, D.V.M., Director, at 2075 Newport Boulevard, Costa Mesa, California 92627, hereinafter referred to as "Veterinarian." W I T N E S S E T H• WHEREAS, under its Municipal Code, the City of Newport Beach is obligated to impound and keep fowl and animals found running at large; and WHEREAS, the Code requires the licensing and vaccination of dogs kept within the City; and WHEREAS, City does not have facilities suitable for impounding and keeping fowl, dogs, cats or other animals; and WHEREAS, Veterinarian has facilities for receiving and caring for fowl and animals that may be picked up running at large on the City streets, NOW, THEREFORE, the parties agree: 1. Veterinarian agrees to receive and care for any dog, cat, bird, fowl, or animal other than a horse, cow, or animal too large to be cared for in his facilities (hereinafter referred to collectively as "animal"), that is delivered to him by the City. 2. Visitors shall be permitted to view all impounded animals during normal inspection hours of 9:00 a.m. to 6:00 p.m. on Monday, -1- through Friday; 9:30 a.m. to 3:00 p.m. on Saturday. 3. Unless claimed by the owner sooner, Veterinarian will hold any animal delivered to him for the following periods: (a) If any animal does not bear identification, said animal shall be held for a minimum of ninety-six (96) hours. This claim period shall not include the hours the shelter is closed. (b) If any animal bears identification, said animal shall be held for six (6) days. This six (6) day period shall not include any day the shelter is closed. In addition, Veterinarian shall keep any animal, licensed or unlicensed, an additional twenty-four (24) hours after the claim period, at the discretion of the impounding Animal Control Officer. 4. After the claim period, Veterinarian will dispose of an animal either by selling it in accordance with the terms of Section 1208.5 of the Code of Civil Procedure, or by destroying it in accordance with Sections 7.16.020 and 7.16.060 of the Newport Beach Municipal Code, and any applicable State Law. 5. Upon redeeming an animal, the owner must pay all accrued boarding fees. 6. If an animal is purchased by a person who had no previous interest in the animal, Veterinarian will collect from said person accrued boarding fees not to exceed Twenty -One Dollars ($21.00). Veterinarian shall charge only the impound and boarding charges established by resolution of the City Council for animals delivered to him by the City for impounding. -2- If a dog or cat is purchased from the shelter by a person who had no previous interest in the dog or cat, Veterinarian will collect from said person a spay/neuter deposit as provided by, and in compliance with, Sections 30503 and 31751 of the Food and Agriculture Code. All money collected pursuant to Section 30503 shall be held by Veterinarian in a special account for the required periods of time. An accounting of spay/neuter deposit collection and refunds with payment of uncollected deposits shall be made to the Licensing Supervisor quarterly. Pet owners may reclaim their deposit from Veterinarian by presenting a certificate of sterilization along with a receipt for the surgery within the prescribed period. 7. In the event Veterinarian is required to dispense an inoculation against rabies to any animal delivered by City, Veterinarian shall charge a fee of not more than Twelve Dollars ($12.00) for the inoculation. The fee shall be collected from the owner or any other person to whom the animal is sold or delivered. 8. In the event Veterinarian is required to perform emergency services for any injured animal delivered to him by City, Veterinarian shall charge the City a fee of not more than Forty - Three Dollars ($43.00) for said services. The fee shall be collected from the owner or any other person to whom said animal is sold or delivered; or, in the case of an animal destroyed or disposed of by Veterinarian pursuant to this Contract, City shall pay such fee. -3- 9. City shall pay Veterinarian a fee to defray clerical, euthanasia, disposal and other operating costs associated with the animal impound services. Veterinarian will bill City on a monthly basis for its actual costs not to exceed Two Thousand Five Hundred Eighty -Three Dollars and Thirty -Three Cents ($2,583.33) per month. Veterinarian agrees that in consideration for the above monthly charge, it will hire an additional shelter employee whose duties will be dedicated to the operations of the shelter and which will include, but are not limited to, issuing dog licenses, provided public information, clerical duties and paperwork regarding the operations of the shelter, cleaning and feeding of animals housed in the shelter, along with the showing of the shelter to visitors during the hours the shelter is open for such purposes. 10. Veterinarian shall keep records to show the date each animal is delivered to him by City, the time it is kept, the disposition of it, and the amount of fees or charges collected from the owner or person to whom it is sold or delivered. These records shall be open and available for inspection by City. All fees or charges, except dog license revenues, collected by Veterinarian shall be retained by him. Dog license revenues shall be retained in a separate account and turned over to City on a weekly basis. 11. At the end of each month, Veterinarian shall bill the City for the charges of boarding, destroying, and disposing of animals which have accrued during such month pursuant to this Contract. City shall pay the same within fifteen (15) days after the receipt thereof. -4- 12. Veterinarian agrees to indemnify, defend, save and hold harmless City, its City Council, boards and commissions, officers and employees from and against any and all loss, damages, liability, claims, suites, costs and expenses for damages of any nature whatsoever, including, but not limited to, bodily injury, death, personal injury, property damages, attorneys fees and court costs arising from any and all negligent action of Veterinarian, its employees, agents or subcontracts in the performance of services or work conducted or performed pursuant to this Agreement. 13. Without limiting Veterinarian's indemnification of City, Veterinarian will obtain and maintain at its own expense during the term of this Agreement policy or policies of professional liability insurance. Such policies shall be signed by a person authorized by that insurer to bind coverage on its behalf and must be filed with the City prior to performing any work pursuant to this Agreement. Veterinarian shall also maintain and obtain worker's compensation insurance covering all employees in amounts required by, and in compliance with, laws of the State of California. 14. City reserves the right to allow a representative of the Newport Beach Police Department to enter the premises at any reasonable time to inspect the same or any part thereof and to attend to or protect the City's interest with a procedure to terminate the Agreement if unsatisfactory conditions exist. 15. The term of this Agreement shall commence on March 1, 1991, and shall continue thereafter; provided, however, that this Agreement may be terminated by either party, without cause, by -5- giving one hundred twenty (120) days' prior written notice to the other party. 16. All notices, demands, requests or approvals to be given under this Agreement shall be given in writing and conclusively shall be deemed served when delivered personally or on the second business day after the deposit thereof in the United States mail, postage prepaid, registered or certified, addressed as hereinafter provided. All notices, demands, requests or approvals from Consultant to City shall be addressed to City at : City of Newport Beach 3300 Newport Boulevard, P. O. Box 1768 Newport Beach, CA 92659-1768 Attention: All notices, demands, requests or approvals from City to Veterinarian shall be addressed to Veterinarian at: v iF 7t: A/ Al f %Y G 7 CARL E,i71!5/t a o 7 $- Al J5 w /00 12 7 v10 -# rl.X- CUsT MFs� Ci IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first written above. APPROVED, AS 704FORM: CITY/ ATTORNEY =. CITY OF NEWPORT BEACH A Municipal Corporation By Mayor ATTEST: CITY CLERK gr/agr/animcon.agt -7- VETERINARIAN PET CARE CENTER OF DOVER SHORES By: _Ly,C�GCGf�� Druce C. BauersfeldfD.V.M. Director ,� :dli:�l.CERTIFICAI t) OF INSURANCE 4 a �� N; �:�r ISSUE DATE (MM/DD/YY) ' i ,r + =r� .'a� 1A 3/20/91 Y: -1l X.1"M^.'l W.auxU'YIi,../.'i:L4!k:.YyMULr1i:,:�-•r .?..1v-'1 .: ._i.+.•/.-. ._L _ ... f{a 1 .. ..: ... ... .. .n.i.. .l, _•_ _.. :.r:_w�vJ :S_:.. .. ....a ...L t ._. .. .___. PRODUCER THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS ;GENERAL AGGREGATE ! $1,000, NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, DVM INSURANCE AGENCY EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW 400 N. TUSTIN AVE., STE 375 i CLAIMS MADE i OCCUR.! SANTA ANA, CA 92705 COMPANIES AFFORDING COVERAGE ;EACH OCCURRENCE !$1,000, COMPANY A FIRE DAMAGE (Any one fire) S 300, LETTER THE HARTFORD CODE SUB -CODE __........... . ... _ .....__...__..-- -............_..........._..:........................_._..__._...........:..........._ _. ..._........ COMPANY B INSURED LETTER BAUERSFELD ENTERPRISES, INC. DBA: 1 ANY AUTO 'PET COMPANY C DOVER SHORES CARE CENTER LETTER 2075: NEWPORT BLVD SCHEDULED AUTOS ! INJURY (Per person) ! COMPANY D COSTA MESA, CA 92627 LETTER COMPANY E ?INJURY i$ LETTER THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED, NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, ' EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. _. _........__..._.._..__...__....._...._..... _ —._..............__.._..__.._........._.._..................... :......._ ------- ---........ ....... -- - _.......__.........._.... ... _....__.....------- .---- ' TYPE OF INSURANCE POLICY NUMBER LTR: :POLICY EFFECTIVE POLICY EXPIRATION ALL LIMITS IN THOUSANDS DATE (MM/DDNY) DATE (MM/DD/YY) ; GENERAL LIABILITY I ;GENERAL AGGREGATE ! $1,000, COMMERCIAL GENERAL LIABILITY -72 i PRODUCTS-COMP/OPS AGGREGATE! $1 , 000 , SBA CD 9 7 8 5 3/16/91 3 / 16 / 9 2 i ------------ --------.--•- i CLAIMS MADE i OCCUR.! PERSONAL 6 ADVERTISING INJURY S 100, OWNER'S h CONTRACTOR'S PROT.i ;EACH OCCURRENCE !$1,000, FIRE DAMAGE (Any one fire) S 300, !-.........� ..---..�_..__—._........ _...._..__._. _........_ i -....._..._._------__..._.._.- ...._ ..... .---------- .MEDICAL EXPENSE (Any one person) $ 5j MEDICAL - 1 AUTOMOBILE LIABILITY j COMBINED ; , SINGLE S 1 ANY AUTO LIMIT ........... _ - .- 1 I ALL OWNED AUTOS BODILY i----- n SCHEDULED AUTOS ! INJURY (Per person) ! HIRED AUTOS ;BODILY ?INJURY i$ NON -OWNED AUTOS (Per accident)' —� GARAGE LIABILITY !PROPERTY $ ?DAMAGE j. EXCESS LIABILITY i EACH AGGREGATE OCCURRENCE! OTHER THAN UMBRELLA FORM __........ .. _.....__ ! _. ...._:—..._._._..... _.._............. --._..__..___... ... ................_... STATUTORY , WORKER'S COMPENSATiOK A AND 72 WEC CK0694 ; 10/1/90 10/1/91 -=- 1,000,- -------(EACH ACCIDENT) i 1, (DISEASE—POLICY LIMIT) 000..,.......:_ ........ EMPLOYERS' LIABILITY _ (DISEASE—EACH EMPLOYEE) ... '1_,_000.,.___..____..---.. ..._.___._....__ OTHER DESCRIPTION OF OPERATIONS/LOCATIONSNEHICLES/RESTRICTIONS/SPECIAL ITEMS THE CERTIFICATE HOLDER IS NAMED AS ADDITIONAL INSURED PER THE ATTACHED CG 2010. pCERTIFICATF� SOLDER CITY OF NEWPORT BEACH 3300 NEWPORT BLVD NEWPORT BEACH,}CA 92660 �ACORD 25—S (3/88) CANCELLATION. SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING COMPANY WILL ENDEAVOR TO MAIL 'In DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO MAIL SUCHCE SHALL IMPOSE NO OBLIGATION OR LIABILITY O ND UP THE COMP NY, ITS AGENTS OR REPRESENTATIVES. ! AUTHORIZED R RESENTA LOU RAMOS �{,( CACORD CORPORATION 1988 POLICY NUMBER: 72 SBA CD9785 COMMERCIAL GENERAL LIABILITY THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED - OWNERS, LESSEES OR CONTRACTORS (FORM B) This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART. SCHEDULE Name of Person or Organization: CITY OF NEWPORT BEACH 3300 NEWPORT BLVD NEWPORT BEACH, CA 92660 (If no entry appears above, information required to complete this endorsement will be shown in the Declarations as applicable to this endorsement.) WHO IS AN INSURED (Section II) is amended to include as an insured the person or organization shown in the Schedule, but only with respect to liability arising out of "your work" for that insured by or for you. CG 20 10 1185 Copyright, Insurance Services Office, Inc., 1984 0 Fireman's Fund Insurance Company Commercial Insurance Policy Fireman's Fund" --Firemads- - - - - - -- _ - - Fund Table of Contents Portfolio Policy POLICY NUMBER 8 H1 MZG 07186870 Named Insured DOVER SHORES PET CARE CENTER Producer ABD-Assoc. Div, CVMA South P. 0. Box 2017 Belmont, CA 94022-1169 This policy contains the following sections: Section Pages General Declarations .................... GO - 1 TO GD - 4 Property Gard (R) Property Declarations.. PR - 1 TO PR - 2 General Liability Declarations........... GL - 1 TO GL - 2 Inland Marine Declarations ............... IM - 1 TO IM - 1 Business Auto Policy Declarations........ 0 0 0 0 0 0 0 AU - 1 TO AU - 1 N n x 0 0 W N d U U LL W m 0 N U w M N M O O General G GENERAL Fireman's Fund POLICY NUMBER Previous Policy Numbers Coverage for sections 8 H1 MZG 07186870 8 H1 MZG 07184958 other than WORKERS' COMPENSATION is provided in the following company: AMERICAN AUTOMOBILE INSURANCE COMPANY PORTFOLIO POLICY (R) CREVE COEUR, MO 63141 A STOCK INSURANCE CO. (15) GENERAL DECLARATIONS Commercial Group No. 873/ Named Insured and Mailing Address DOVER SHORES PET CARE CENTER (Named Insureds are continued following the Premium Summary section of these General Declarations) 2075 NEWPORT BLVD. #112 COSTA MESA CA 92627 Producer Name and Address ABD-Assoc. Div, CVMA South P. 0. Box 2017 LL Belmont, CA 94022-1169 0 o The named insured is a(n) Corporation 0 0 0 - Business or Operations of the Named Insured: VETERINARIAN co 0 N n Insurance is provided only under each coverage of this policy or the WORKERS' COMPENSATION AND EMPLOYERS' LIABILITY POLICY listed below, subject otherwise to all the terms and conditions of the General Provisions and of said Coverages) or policy having reference thereto. PROPERTY COVERAGES GENERAL LIABILITY COVERAGES - OCCURRENCE INLAND MARINE COVERAGES AUTO INSURANCE COVERAGES U) Policy Period (For above coverages) z INCEPTION DATE 07/01/00 EXPIRATION DATE 07/01/01 Beginning and Ending at 12:01 A.M., Standard Time at the address of the insured LL W N It is agreed and understood that the BUSINESS AUTO POLICY, GARAGE POLICY AND W) TRUCKERS POLICY are self contained policies forming part of the u policy identified above. Premium is included in the Premium Summary below. LL W m 0 N_ U W N GD - 1 0 0 r_1 r\ r11 POLICY NUMBER 8 Hl MZG 07186870 Named Insured DOVER SHORES PET CARE CENTER GENERAL DECLARATIONS Continued PREMIUM SUMMARY Estimated Annual Premium $2,837.00 Premium due at Inception $2,837.00 This Policy may be subject to Premium Adjustment per Policy Terms. (Named Insured continued) BAUERSFELD ENTERPRISES, LTD. (A CORP) (DBA) DOVER SHORES PET CARE CENTER LOCATIONS OF PREMISES --Applicable to Coverages specified in these Declarations (Not applicable to WORKERS' COMPENSATION AND EMPLOYERS' LIABILITY POLICY) LOC BLD 001 001 2075 NEWPORT BLVD. COSTA MESA CA 92627 GO - 2 POLICY NUMBER 8 Hl MZG 07186870 Named Insured DOVER SHORES PET CARE CENTER GENERAL DECLARATIONS Continued FORMS ATTACHED AT INCEPTION GENERAL PROVISIONS IL0003 04 98 - CALCULATION OF PREMIUM IL0017 11 98 - COMMON POLICY CONDITIONS IL0021 11 85 - NUCLEAR ENERGY LIABILITY EXCLUSION ENDORSEMENT (BROAD FORM) IL0270 12 96 - CALIFORNIA CHANGES - CANCELLATION AND NONRENEWAL IL7005 02 96 - AMENDMENT OF POLICY - ADDITIONAL CONDITION PROPERTY 140413 06 84 - VAL-U-GARD II ENDORSEMENT 141035 12 88 - COMMERCIAL PROPERTY CAUSES OF LOSS FORM 141073 05 93 - PROPERTY-GARD AMENDATORY ENDORSEMENT 141091 12 96 - VETERINARY BUSINESS INCOME ENDORSEMENT 141092 01 99 - VETERINARY AMENDATORY ENDORSEMENT 141108 01 99 - VETERINARIANS COMBINATION PLUS ENDORSEMENT LL 141872 01 99 - VETERINARY FLOOD ENDORSEMENT 0 142000 12 88 - COMMERCIAL PROPERTY PROPERTY-GARD BUILDING AND PERSONAL 0 PROPERTY COVERAGE FORM g CP0030 10 91 - BUSINESS INCOME (AND EXTRA EXPENSE) COVERAGE FORM CP0090 07 88 - COMMERCIAL PROPERTY CONDITIONS o CP0299 11 85 - CANCELLATION CHANGES N CP1040 06 95 - CAUSES OF LOSS - EARTHQUAKE FORM GENERAL LIABILITY 143571 01 97 - VETERINARIAN'S PROFESSIONAL LIABILITY COVERAGE FORM CG0001 07 98 - COMMERCIAL GENERAL LIABILITY COVERAGE FORM CGO057 09 99 - AMENDMENT OF INSURING AGREEMENT KNOWN INJURY OR DAMAGE CG2011 11 85 - MANAGERS OR LESSORS OF PREMISES INLAND MARINE 140559 12 86 - REV. CONDITIONS z 140866 02 86 - DEBRIS AND POLLUTANT REMOVAL CM7222 12 96 - VETERINARY ANIMAL COVERAGE FORM AUTOMOBILE d U GD -3 W N N M O O POLICY NUMBER 8 Hl MZG 07186870 Named Insured DOVER SHORES PET CARE CENTER GENERAL DECLARATIONS Continued CA0001 01 87 - BUSINESS AUTO COVERAGE FORM CA0029 12 88 - CHANGES IN BUSINESS AUTO AND TRUCKERS COVERAGE FORMS - INSURED CONTRACT CA7003 01 87 - EXPLANATION OF PREMIUM BASIS CA7007 01 87 - WHO IS AN INSURED AMENDED Countersignature of Authorized Agent: Producer ABD-Assoc. Div, CVMA South Date 07-01-00 GD - 4 C11 Calculation of Premium - IL 00 03 04 98 Policy Amendment - General Provisions This endorsement modifies insurance provided under the following: Boiler and Machinery Coverage Part Commercial Automobile Coverage Part Commercial Crime Coverage Part Commercial General Liability Coverage Part Commercial Inland Marine Coverage Part Commercial Property Coverage Part Employment -Related Practices Liability Coverage Part Farm Coverage Part Liquor Liability Coverage Part Owners and Contractors Protective Liability Coverage Part Pollution Liability Coverage Part Products/Completed Operations Liability Coverage Part Professional Liability Coverage Part Railraod Protective Liability Coverage Part Special Protective and Highway Liability Policy - New York The following is added: issued. On each renewal, continuation, or anniversary x of the effective date of this policy, we will compute the The premium shown in the Declarations was computed premium in accordance with our rates and rules then based on rates in effect at the time the policy was in effect. 0 0 0 0 0 0 O N n z Z This Form must be attached to Change Endorsement when issued after the policy is written LL `° One of the Fireman's Fund Insurance Companies as named in the policy w N h 0_ 2 W N U IL0003 4-98 MCopyright, Insurance Services Office, Inc., 1985, 1997 N M O O Common Policy Conditions - IL 00 17 11 98 All Coverage Parts included in this policy are subject to the following conditions. A. Cancellation 1 2. 3. 4. k, C The first Named Insured shown in the Dec- larations may cancel this policy by mailing or delivering to us advance written notice of cancellation. We may cancel this policy by mailing or de- livering to the first Named Insured written notice of cancellation at least: a. 10 days before the effective date of can- cellation if we cancel for nonpayment of premium; or b. 30 days before the effective date of can- cellation if we cancel for any other rea- son. We will mail or deliver our notice to the first Named Insured's last mailing address known to us. Notice of cancellation will state the effective date of cancellation. The policy period will end on that date. If this policy is cancelled, we will send the first Named Insured any premium refund due. If we cancel, the refund will be pro rata. If the first Named Insured cancels, the refund may be less than pro rata. The cancellation will be effective even if we have not made or of- fered a refund. If notice is mailed, proof of mailing will be sufficient proof of notice. B. Changes This policy contains all the agreements between you and us concerning the insurance afforded. The first Named Insured shown in the Declara- tions is authorized to make changes in the terms of this policy with our consent. This policy's terms can be amended or waived only by endorsement issued by us and made a part of this policy. C. Examination of Your Books and Records We may examine and audit your books and re- cords as they relate to this policy at any time dur- ing the policy period and up to three years afterward. D. Inspections and Surveys 1. We have the right to: a. Make inspections and surveys at any time; b. Give you reports on the conditions we find; and c. Recommend changes. 2. We are not obligated to make any inspections, surveys, reports or recommendations and any such actions we do undertake relate only to insurability and the premiums to be charged. We do not make safety inspections. We do not undertake to perform the duty of any person or organization to provide for the health or safety of workers or the public. And we do not warrant that conditions: a. Are safe or healthful; or b. Comply with laws, regulations, codes or standards. This Form must be attached to Change Endorsement when issued after the policy is written. One of the Fireman's Fund Insurance Companies as named in the policy Se etary PresidentFIZU/ V' IL0017 11-98 Copyright, Insurance Services Office, Inc., Page I Of 2 LL 0 0 0 0 0 0 0 N n t 3. Paragraphs 1. and 2 of this condition apply not only to us, but also to any rating, advi- sory, rate service or similar organization which makes insurance inspections, surveys, F reports or recommendations. 4. Paragraph 2. of this condition does not apply to any inspections, surveys, reports or recom- mendations we may make relative to certif- ication, under state or municipal statutes, ordinances or regulations, of boilers, pressure vessels or elevators. E. Premiums The first Named Insured shown in the Declara- tions: 1. Is responsible for the payment of all premi- ums; and N U IL0017 11-98 MCopyright, Insurance Services Office, Inc., N M O O 2. Will be the payee for any return premiums we pay. Transfer of Your Rights and Duties Under This Policy. Your rights and duties under this policy may not be transferred without our written consent except in the case of death of an individual named in- sured. If you die, your rights and duties will be transferred to your legal representative but only while acting within the scope of duties as your legal represen- tative. Until your legal representative is appointed, anyone having proper temporary custody of your property will have your rights and duties but only with respect to that property. Page 2 of 2 r, r - Nuclear Energy Liability Exclusion Endorsement - Broad Form IL 00 21 11 85 Policy Coverage - General Provisions This endorsement modifies insurance provided under the following: Farm Coverage General Liability Coverage Automobile Coverage 1. The insurance does not apply: A. Under any Liability Coverage, to bodily injury or property damage: (1) With respect to which an insured under the policy is also an insured under a nu- clear energy liability policy issued by Nuclear Energy Liability Insurance As- sociation, Mutual Atomic Energy Liabil- ity Underwriters or Nuclear Insurance Association of Canada, or would be an insured under any such policy but for its termination upon exhaustion of its limit of liability; or (2) Resulting from the hazardous properties of nuclear material and with respect to which (a) any person or organization is required to maintain financial protection pursuant to the Atomic Energy Act of 1954, or any law amendatory thereof, or (b) the insured is, or had this policy not been issued would be, entitled to indem- nity from the United States of America, or any agency thereof, under any agree- ment entered into by the United States of America, or any agency thereof, with any person or organization. B. Under any Medical Payments coverage, to expenses incurred with respect to bodily injury resulting from the hazardous properties of nu- clear material and arising out of the operation of a nuclear facility by any person or organ- ization. C. Under any Liability Coverage, to bodily injury or property damage resulting from the haz- ardous properties of nuclear material, if: (1) The nuclear material (a) is at any nuclear facility owned by, or operated by or on behalf of, an insured or (b) has been dis- charged or dispersed therefrom; (2) The nuclear material is contained in spent fuel or waste at any time possessed, handled, used, processed, stored, trans- ported or disposed of by or on behalf of an insured; or (3) The bodily injury or property damage arises out of the furnishings by an insured of services, materials, parts or equipment in connection with the planning, con- struction, maintenance, operation or use of any nuclear facility, but if such facility is located within the United States of America, its territories or possessions or Canada, this exclusion (3) applies only to property damage to such nuclear fa- cility and any property thereat. 2. As used in this endorsement: hazardous properties include radioactive, toxic or explosive properties; This Form must be attached to Change Endorsement when issued after the policy is written. One of the Fireman's Fund Insurance Companies as named in the policy President IL0021 11-85R Page 1 of 2 Nuclear material means source material, special fuel, or (3) handling, processing or packaging nuclear material or byproduct material; waste; source material, special nuclear material, and by- (c) Any equipment or device used for the proc- product material have the meanings given them in essing, fabricating or alloying of special nu - the Atomic Energy Act of 1954 or in any law clear material if at any time the total amount amendatory thereof, of such material in the custody of the insured at the premises where such equipment or de - spent fuel means any fuel element or fuel compo- vice is located consists of or contains more nent, solid or liquid, which has been used or ex- than 25 grams of plutonium or uranium 233 posed to radiation in a nuclear reactor; or any combination thereof, or more than 250 grams of uranium 235; waste means any waste material (a) containing by-product material other than the tailings or (d) Any structure, basin, excavation, premises or wastes produced by the extraction or concen- place prepared or used for the storage or dis- tration of uranium or thorium from any ore proc- posal of waste; essed primarily for its source material content, and (b) resulting from the operation by any person or and includes the site on which any of the for - organization of any nuclear facility included under egoing is located, all operations conducted on the first two paragraphs of the definition of nuclear such site and all premises used for such oper- facility. ations; nuclear facility means: nuclear reactor means any apparatus designed or used to sustain nuclear fission in a self - (a) Any nuclear reactor; supporting chain reaction or to contain a cri- tical mass of fissionable material; LL CO (b) Any equipment or device designed or used for property damage including all forms of radio - (1) separating the isotopes of uranium or active contamination of property. g plutonium, (2) processing or utilizing spent 0 0 0 0 N N n Y N_ U IL0021 11-85R w N M O 0 Page 2 of 2 California Changes - Cancellation and Nonrenewal - IL 02 70 12 96 Policy Amendment(s) Commercial General Provisions This endorsement modifies insurance provided under the following: Boiler and Machinery Coverage Part American Business Coverage Commercial Auto Coverage Part Commercial Crime Coverage Part (except Coverages A and B) Commercial General Liability Coverage Part Commercial Inland Marine Coverage Part Commercial Property Coverage Part Farm Coverage Part A. The following provisions are added to the CAN- CELLATION Common Policy Condition: 7. Residential Property This provision applies to coverage on real property which is used predominantly for residential purposes and consisting of not more than four dwelling units, and to cover- age on tenants' household personal property in a residential unit, if such coverage is written under one of the following: American Business Coverage Commercial Property Coverage Part Farm Coverage Part - Farm Property Cover- age Form a. If such coverage has been effect for 60 days or less, and is not a renewal of cov- erage we previously issued, we may can- cel this coverage for any reason, except as provided in b. and c. below. b. We may not cancel this policy solely be- cause the first Named Insured has: (1) Accepted an offer of earthquake coverage; or (2) Cancelled or did not renew a policy issued by the California Earthquake Authority (CEA) that included an earthquake policy premium sur- charge. However, we shall cancel this policy if the first Named Insured has accepted a new or renewal policy issued by the CEA that includes an earthquake policy pre- mium surcharge but fails to pay the earthquake policy premium surcharge authorized by the CEA. c. We may not cancel such coverage solely because corrosive soil conditions exist on the premises. This restriction (c.) applies only if coverage is subject to one of the following, which exclude loss or damage caused by or resulting from corrosive soil conditions: (1) American Business Coverage, (2) Commercial Property Coverage Part - Causes of Loss - Special Form; or (3) Farm Coverage Part - Farm Prop- erty Coverage Form; Covered Causes of Loss - Special. This Form must be attached to Change Endorsement when issued after the policy is written. One of the Fireman's Fund Insurance Companies as named in the policy Se etary President IL0270 12-96 CA Copyright, Insurance Services Office, Inc., 1988, 1993, 1996 Copyright, ISO Commercial Risk Services, Inc., 1988, 1993, 1996 Page 1 of 4 8. All Policies in Effect for More Than 60 Days (a) Loss of, or changes in, our re- a. If this policy has been in effect for more insurance covering all or part of the risk would threaten our than 60 days, or is a renewal of a policy financial integrity or solvency; we issued, we may cancel this policy only or upon the occurrence, after the effective date of the policy, of one or more of the (b) Continuation of the policy following: coverage would: (1) Nonpayment of premium, including (i) Place us in violation of payment due on a prior policy we California law or the laws issued and due during the current of the state where we are policy term covering the same risks. domiciled; or (2) Discovery of fraud or material mis- (ii) Threaten our solvency. representation by: (7) A change by you or your represen- (a) Any insured or his or her rep- tative in the activities or property of resentative in obtaining this in- the commercial or industrial enter- surance; or prise, which results in a materially added, increased or changed risk, (b) You or your representative in unless the added, increased or pursuing a claim under this changed risk is included in the pol- policy. icy. x (3) A judgment by a court or an ad- b. We will mail or deliver advance written ministrative tribunal that you have notice of cancellation, stating the reason o violated a California or Federal law, for cancellation, to the first Named In- 0 having as one of its necessary ele- sured, and to the producer of record, at ments an act which materially in- least: creases any of the risks insured (1) 10 days before the effective date of against. cancellation if we cancel for a reason (4) Discovery of willful or grossly listed in paragraph 8.a.(1) or (2). negligent acts or omissions, or of (2) 30 days before the effective date of any violations of state laws or regu- cancellation if we cancel for any lations establishing safety standards, other reason listed in paragraph 8.a. by you or your representative, which materially increase any of the risks B. The following is added and supersedes any pro- insured against. visions to the contrary: (5) Failure by you or your represen- Nonrenewal Z tative to implement reasonable loss 1. Subject to the provisions of paragraphs B.2. control requirements, agreed to by and B.3. below, if we elect not to renew this you as a condition of policy issu- policy, we will mail or deliver written notice oance, or which were conditions stating the reason for nonrenewal to the first LL precedent to our use of a particular Named Insured shown in the Declarations W rate or rating plan, if that failure and to the producer of record, at least 60 days, a materially increases any of the risks but not more than 120 days, before the expi- LLinsured against. ration or anniversary date. W 0 0 (6) A determination by the Commis- We will mail or deliver our notice to the first N_ sioner of Insurance that the: Named Insured, and to the producer of U IL0270 12-96 CA Copyright, Insurance Services Office, Inc., 1988, 1993, 1996 W Copyright, ISO Commercial Risk Services, Inc., 1988, 1993, 1996 N Cn O 0 Page 2 of 4 record, at the mailing address shown in the policy. 2. Residential Property This provision applies to coverage on real property used predominantly for residential purposes and consisting of not more than four dwelling units, and to coverage on tenants' household property contained in a residential unit, if such coverage is written under one of the following: American Business Coverage Commercial Property Coverage Part Farm Coverage Part - Farm Property Cover- age Form two years and that required a re- duction in policyholder surplus of at least 25% for payment of those claims; or (3) We have: (a) Lost or experienced a substan- tial reduction in the availability or scope of reinsurance cover- age; or (b) Experienced a substantial in- crease in the premium charged for reinsurance coverage of our residential property insurance policies; and a. We may elect not to renew such coverage the Commissioner has approved a for any reason, except as provided in b., plan for the nonrenewals that is fair c. and d. below: and equitable, and that is responsive to the changes in our reinsurance b. We will not refuse to renew such cover- position. age solely because the first Named In- sured has accepted an offer of earthquake c. We will not refuse to renew such cover - coverage. age solely because the first Named In- sured has cancelled or did not renew a However, the following applies only to policy, issued by the California Earth - insurers who are associate participating quake Authority that included an earth - insurers as established by Cal. Ins. Code quake policy premium surcharge. Section 10089.16. We may elect not to renew such coverage after the first d. We will not refuse to renew such cover - Named Insured has accepted an offer of age solely because corrosive soil condi- earthquake coverage, if one or more of tions exist on the premises. This the following reasons applies: restriction (d.) applies only if coverage is subject to one of the following, which (1) The nonrenewal is based on sound exclude loss or damage caused by or re - underwriting principles that relate to sulting from corrosive soil conditions: the coverages provided by this policy and that are consistent with the ap- (1) American Business Coverage, proved rating plan and related doc- (2) Commercial Property Coverage Part uments filed with the Department -Causes of Loss -Special Form; or of Insurance as required by existing law; (3) Farm Coverage Part - Farm Prop - erty Coverage Form; Covered (2) The Commissioner of Insurance Causes of Loss - Special. finds that the exposure to potential losses will threaten our solvency or 3. We are not required to send notice of nonre- place us in a hazardous condition. newal in the following situations: A hazardous condition includes, but is not limited to, a condition in a. If the transfer or renewal of a policy, which we make claims payments for without any changes in terms, condi- losses resulting from an earthquake tions, or rates, is between us and a that occurred within the preceding member of our insurance group. IL0270 12-96 CA Copyright, Insurance Services Office, Inc., 1988, 1993, 1996 Copyright, ISO Commercial Risk Services, Inc., 1988, 1993, 1996 Page 3 of 4 1 T b. If the policy has been extended for 90 time of issuance that it will not be re - days or less, provided that notice has newed. been given in accordance with paragraph e. If the first Named Insured requests a B.1. change in the terms or conditions or risks c. If you have obtained replacement cover- covered by the policy within 60 days of age, or if the first Named Insured has the end of the policy period. agreed, in writing, within 60 days of the f. If we have made a written offer to the termination of the policy, to obtain that first Named Insured, in accordance with coverage. the time frames shown in paragraph B.1. to renew the policy under changed terms d. If the policy is for a period of no more or conditions or at an increased premium than 60 days and you are notified at the rate, when the increase exceeds 25%. IL0270 12-96 CA Copyright, Insurance Services Office, Inc., 1988, 1993, 1996 uj Copyright, ISO Commercial Risk Services, Inc., 1988, 1993, 1996 Page 4 of 4 N M O O Amendment of Policy - Additional Condition - IL 70 05 02 96 Policy Amendment(s) Commercial General Provisions This endorsement modifies insurance provided under the following: American Business Coverage Commercial General Liability Automobile Crime Inland Marine Farm Property Farm Liability You and we agree to add this condition to the policy: Two or More Policies Issued By Us The Other Insurance provisions changed to add the following: If the same occurrence, accident, loss or damage is covered under more than one policy issued by us or a company affiliated with us, the following applies: 1. The maximum Limit of Insurance that applies under all policies shall not exceed the highest limit that applies under any one policy. 2. For Farm Liability, General Liability or Automo- bile: we will not provide coverage after the aggre- gate limit of insurance that applies under any one policy: a. has been exhausted; or b. would have been exhausted had all covered claims been submitted under that one policy rather than under two or more policies. This condition does not apply to a policy issued to apply as excess over this policy. This Form must be attached to Change Endorsement when issued after the policy is written. One of the Fireman's Fund Insurance Companies as named in the policy a4_5A"W4_1 Se etary IL7005 2-96 Copyrighted, Insurance Services, Inc., 1996 Property PR PROPERTY 0 0 LL m w N d U w w m 0 N U POLICY NUMBER 8 H1 MZG 07186870 NAMED INSURED DOVER SHORES PET CARE CENTER PORTFOLIO POLICY (R) PROPERTY-GARD (R) PROPERTY DECLARATIONS INSURANCE IS PROVIDED ONLY FOR THOSE COVERAGES, ENDORSEMENTS AND LIMITS OF LIABILITY SHOWN BELOW. BUSINESS PERSONAL PROPERTY - SPECIAL CAUSES OF LOSS FORM COINSURANCE 100% PROPERTY COVERED AND LIMITS OF LIABILITY ITEM A - STOCK ITEM B - FURNITURE, FIXTURES, EQUIPMENT AND MACHINERY ITEM C - TENANTS IMPROVEMENTS PROPERTY AT SPECIFICALLY IDENTIFIED LOCATIONS LOC BLD COVERAGE LIMIT OF DEDUCTIBLE LOC BLD COVERAGE LIMIT OF DEDUCTIBLE ITEMS LIABILITY ITEMS LIABILITY 001 001 A,B,C $315,000 $500 REPLACEMENT COST APPLIES AT LOCATIONS LOC-BLD(S): 001-001 EARTHQUAKE LOCATIONS AND DEDUCTIBLE PERCENTAGE PER UNIT OF INSURANCE LOC BLD PERCENT LOC BLD PERCENT 001 001 10% ITEM D- PROPERTY AT LOCATIONS NOT SPECIFICALLY IDENTIFIED FOR ITEMS A,B,C,D AND E PER LOCATION $15,000 AGGREGATE $15,000 DEDUCTIBLE $500 PR - 1 POLICY NUMBER 8 H1 MZG 07186870 NAMED INSURED DOVER SHORES PET CARE CENTER PORTFOLIO POLICY (R) TIME ELEMENT - SPECIAL CAUSES OF LOSS FORM BUSINESS INCOME COINSURANCE 100% LOCATIONS AND LIMITS OF LIABILITY LOC BLD LIMITS OF LIABILITY LOC BLD LIMITS OF LIABILITY 001 001 $150,000 PROPERTY ENDORSEMENTS VAL-U-GARD II ENDORSEMENT (140413 06 84) APPLIES TO BUSINESS PERSONAL PROPERTY - ITEM A, ITEM B, ITEM C ONLY APPLIES TO BUSINESS REAL PROPERTY VAL-U-GARD II COST INDEX AUTOMATIC INCREASE LOC-BLD(S): 001-001 PROPERTY-GARD AMENDATORY ENDORSEMENT (141073 05 93) PR -2 LL �D 0 0 0 0 x U) U) z 0 LL W w N h d U LL W W O i 0 Val -U -Gard II Endorsement - 140413 06 84 Policy Amendment - Property Coverage Insured Producer Schedule Applies To _ Business Real Property Policy Number Effective Date _ Business Personal Property (If no entry appears above, information required to complete this Endorsement will be shown in the Declarations as applicable to this Endorsement.) Your Policy is amended as follows: Application of Coinsurance Provision. a. When the Schedule for this Endorsement show it applies to Business Real Property, Coinsurance will not apply to Business Real Property. b. When the Schedule for this Endorsement show it applies to Business Personal Property, the coinsurance provision will not apply to Business Personal Property. c. The coinsurance provision will continue to apply to all other property covered by this policy. proportion to any increase shown in the appro- priate cost index of the Marshall Valuation Service prepared by Marshall and Swift Publication Com- pany. We will use building cost indexes for all real property items. We will use industry equipment indexes for all personal property items including stock. We will compute any change in values as follows: a. Automatic Increase of Limits. When inflation causes construction costs and property values to b. rise while your policy is in force, we will provide you with an added amount of insurance. We will increase the limits of liability that apply to the property covered by this Endorsement in To determine the limit of liability as of a spe- cific date, we will multiply the limit in effect on the effective date of this Endorsement by the appropriate inflation factor. We will ob- tain this factor by dividing the monthly cost index for the specific date by the monthly cost index which applied on the effective date of this Endorsement. If we later endorse the policy to increase or decrease the limit in effect on the effective date of this Endorsement, we will separately adjust the original limit and each addition and re- duction for any increase in values. This Form must be attached to Change Endorsement when issued after the policy is written. One of the Fireman's Fund Insurance Companies as named in the policy 140413 6-84 N Page 1 of 2 M O O c. If the monthly cost index for a date is not Effective Date of This Endorsement available, we will compute the index by using If the effective date is not shown in the Dec - the average monthly rate of change for the larations for this Endorsement, then the ef- relevant quarter. We will do this by prorating fective date is the inception date of the policy the difference between the cost index for the to which this Endorsement is attached. But if quarter ending before that date and the index the policy is subject to annual rerating, then for the quarter ending after that date. If the the effective date will be the most recent an - index for the quarter ending after the date is niversary date of the policy. not available, we will use the average monthly Separate Items of Property rate of change for the preceding quarter. If the insurance provided by this policy is di- d. In no event will we reduce the limit of liability vided into two or more items, we will apply below the limit in effect on the effective date the terms of the Endorsement separately to of this Endorsement including any additions each item. But we will not apply the terms and reductions which are separately endorsed of this Endorsement to any item excluded in on to the policy. the policy declarations. 1404136-84 Page 2 of 2 Of D U) Z Causes of Loss Form - 141035 12 88 Commercial Property Coverage This Causes of Loss Form is applicable to all Com- mercial Property Coverage Forms attached to this pol- icy unless otherwise stated. The causes of loss we cover are shown in the Declara- tions as either Basic or Special. When a limit of liability is shown in the Declarations, the described property is covered against the covered causes of loss shown. Some words and phrases that appear in bold face or quotation marks have special meaning. Refer to Defi- nitions. A. Covered Causes of Losses Basic Causes of Loss (Basic Form) When Basic is shown in the Declarations, Covered Causes of Loss means the following unless the loss is excluded or limited as stated in Sections B and C that follow: 1. Fire. 2. Lightning. 3. Explosion, including the explosion of gases or fuel within the furnace of any fired vessel or within the flues or passages through which the gases of combustion pass. This cause of loss does not include loss or damage by: a. Rupture, bursting or operation of pres- sure relief devices; or b. Rupture or bursting due to expansion or swelling of the contents of any building or structure, caused by or resulting from water. 4. Windstorm or Hail, but not including: a. Frost or cold weather; or b. Ice (other than hail), snow or sleet, whether driven by wind or not. We will not pay for loss or damage to the in- terior to any building or structure, or the property inside the building or structure, caused by rain, snow, sand or dust, whether driven by wind or not, unless the building or structure first sustains wind or hail damage to its roof or walls through which the rain, snow, sand or dust enters. 5. Smoke causing sudden and accidental loss or damage. This cause of loss does not include smoke from agricultural smudging or indus- trial operations. 6. Aircraft or Vehicles, meaning only physical contact of an aircraft, a spacecraft, a self- propelled missile, a vehicle or an object thrown up by a vehicle with the described property or with the building or structure containing the described property. This cause of loss includes loss or damage by objects falling from aircraft. We will not pay for loss or damage caused by or resulting from vehicles you own or operate, 7. Riot or Civil Commotion, including: a. Acts of striking employees while occu- pying the described premises; and b. Looting occurring at the time and place of a riot or civil commotion. This Form must be attached to Change Endorsement when issued after the policy is written. One of the Fireman's Fund Insurance Companies as named in the policy rX MIM�= _,iMl� President N U iaioss ii-askn Page 1 of 7 N M O O r, 8. Vandalism, meaning willful and malicious damage to, or destruction of, the described property. We will not pay for loss or damage: a. To glass (other than glass building blocks) that is part of a building, struc- ture, or an outside sign; but we will pay for loss or damage to other property caused by or resulting from breakage of glass by vandals. b. Caused by or resulting from theft, except for building damage caused by the breaking in or exiting of burglars. 9. Sprinkler Leakage, meaning leakage or dis- charge of any substance from an Automatic Sprinkler System, including collapse of a tank that is part of the system. If the building or structure containing the Automatic Sprinkler System is Covered Property, we will also pay the cost to: a. Repair or replace damaged parts of the Automatic Sprinkler System if the dam- age: (1) Results in sprinkler leakage; or (2) is directly caused by freezing. b. Tear out and replace any part of the building or structure to repair damage to the Automatic Sprinkler System that has resulted in sprinkler leakage. Automatic Sprinkler System means: (a) Any automatic fire protective or ex- tinguishing system, including con- nected: (i) Sprinklers and discharge noz- zles; (ii) Ducts, pipes, valves and fittings; (iii) Tanks, their component parts and supports; and (iv) Pumps and private fire protection mains. (b) When supplied from an automatic fire protective system: (i) Non -automatic fire protective systems; and (ii) Hydrants, standpipes and out- lets. 10. Sinkhole Collapse, meaning loss or damage caused by the sudden sinking or collapse of land into underground empty spaces created by the action of water on limestone or do- lomite. This cause of loss does not include: a. The cost of filling sinkholes; or b. Sinking or collapse of land into man- made underground cavities. 11. Volcanic Action, meaning direct loss or dam- age resulting from the eruption of a volcano when the loss or damage is caused by: a. Airborne volcanic blast or airborne shock waves; b. Ash, dust or particulate matter; or c. Lava flow. All volcanic eruptions that occur within any 168 -hour period will constitute a single oc- currence. This cause of loss does not include the cost to remove ash, dust or particulate matter that does not cause direct physical loss or damage to the described property. Special Causes of Loss (Special Form) When Special is shown in the Declarations, covered causes of loss means the Basic Causes of Loss and Risks of Direct Physical Loss not covered by the Basic Causes of Loss unless loss is excluded or limited as stated in Sections B and C that follow. B. Exclusions 1. We will not pay for loss or damage caused directly or indirectly by any of the following. Such loss or damage is excluded regardless of any other cause or event that contributes concurrently or in any sequence to the loss. 141035 12-88 Page 2 of 7 a. Ordinance or Law C. Governmental Action The enforcement of any ordinance or Seizure or destruction of property by or - law: der of governmental authority. (1) Regulating the construction, use or But we will pay for acts of destruction repair of any property; or ordered by governmental authority and taken at the time of a fire to prevent its (2) Requiring the tearing down or re- spread, if the fire would be covered under moval of any property, including the this Coverage Part. cost of removing its debris. d. Nuclear Hazard b. Earth Movement (This does not apply to Nuclear reaction or radiation, or radio - property in transit) active contamination, however caused. (1) Any earth movement (other than But if loss or damage by fire results, we sinkhole collapse), such as an earth- will pay for that resulting loss or damage. quake, landslide, mine subsidence or earth sinking, rising or shifting. e. Power Failure But if loss or damage by fire or ex- The failure of power or other utility ser - plosion results, we will pay for that vice supplied to the described premises, resulting loss or damage. however caused, if the failure occurs (2) Volcanic eruption, explosion or ef- away from the described premises. w fusion. But if loss or damage by fire x But if loss or damage by a Covered W or volcanic action results, we will Cause of Loss results, we will pay for pay for that resulting loss or damage. 0 that resulting loss or damage. 0 o If loss or damage by building glass 0 f. War and Military Action breakage results and Special Causes (1) War, including undeclared or civil N of Loss is covered, we will pay for n x the resulting loss or damage. war; (2) Warlike action by a military force, Volcanic action means direct loss or including action in hindering or de - damage resulting from the eruption fending against an actual or expected of a volcano when the loss or dam- attack, by any government, sover- age is caused by: eign or other authority using mili- tary personnel or other agents; or (a) Airborne volcanic blast or air- borne shock waves; (3) Insurrection, rebellion, revolution, usurped power, or action taken by Z (b) Ash, dust or particulate matter; governmental authority in hindering or or defending against any of these. (c) Lava flow. g. Flood (This does not apply to property 0 in transit.) W All volcanic eruptions that occur within any We do not cover loss or damage caused by, 168 -hour period will constitute a single oc- Cq resulting from, contributed to or made worse a currence. by flood. But if loss or damage by fire or 0 W Volcanic action does not include the cost to explosion not otherwise excluded results, we o remove ash, dust or particulate matter that will pay for that resulting loss or damage. N does not cause direct physical loss or damage 2. We will not pay for loss or damage caused by U to the described property. or resulting from any of the following: LU 141035 12-88 N M O 0 Page 3 of 7 a. Artificially generated electric current, in- cluding electric arcing, that disturbs elec- trical devices, appliances or wires. But if loss or damage by fire results, we will pay for that resulting loss or damage. b. Delay, loss of use or loss of market. c. Smoke, vapor or gas from agricultural smudging or industrial operations. d. (1) Wear and tear; (2) Rust, corrosion, fungus, decay, de- terioration, hidden or latent defect or any quality in property that causes it to damage or destroy itself; (3) Disease; (4) The release, discharge or dispersal of pollutants unless the release, dis- charge or dispersal is itself caused by any of the specified causes of loss. (5) Settling, cracking, shrinking or ex- pansion; (6) Insects, birds, rodents or other ani- mals; (7) Mechanical breakdown of machines; (8) The following causes of loss to per- sonal property: (a) Dampness or dryness of atmos- phere; (b) Changes in or extremes of tem- perature; or (c) Marring or scratching. But if loss or damage by the specified causes of loss results, we will pay for that resulting loss or damage. e. Dishonest or criminal act by you, any of your partners, employees, directors, trus- tees, authorized representatives of anyone to whom you entrust the property for any purpose other than a carrier or other bailee for hire: (1) Acting alone or in collusion with others; or (2) Whether or not occurring during the hours of employment. This exclusion does not apply to acts of destruction by your employees; but theft by employees is not covered. f. Voluntary parting with any property by you or anyone else to whom you have entrusted the property if induced to do so by any fraudulent scheme, trick, de- vice or false pretense. g. Collapse, except as provided below in the Additional Coverage for Collapse. But if loss or damage by a Covered Cause of Loss results at the described premises, we will pay for that resulting loss or damage. 3. We will not pay for loss or damage caused by or resulting from any of the following. But if loss or damage by a Covered Cause of Loss results, we will pay for that resulting loss or damage. a. Weather conditions. But this exclusion only applies if weather conditions con- tribute in any way with a cause or event excluded in Section B.I. above to pro- duce the loss or damage. b. Acts or decisions, including the failure to act or decide, of any person, group, or- ganization or governmental body. C. Faulty, inadequate or defective: (1) Planning, zoning, development, sur- veying, siting; (2) Design, specifications, workman- ship, repair, construction, reno- vation, remodeling, grading compaction; (3) Materials used in repair, con- struction, renovation or remodeling; or (4) Maintenance; of part or all of any property on or off the described premises. 4. Special Exclusions 1410351i -as Page 4 of 7 X D Z N U The following provisions apply only to the specified Coverage Forms. a. Business Income (and Extra Expense) Coverage Form, Business Income (Without Extra Expense) Coverage Form, or Extra Expense Coverage Form We will not pay for: (1) Any loss caused by or resulting from: (a) Damage or destruction of fin- ished stock; or (b) The time required to reproduce finished stock. This exclusion does not apply to Extra Expense. (2) Any loss caused by or resulting from direct physical loss or damage to ra- dio or television antennas, including their lead-in wiring, masts or towers. (3) Any increase of loss caused by or resulting from: (a) Delay in rebuilding, repairing or replacing the property or re- suming operations, due to in- terference at the location of the rebuilding, repair or replace- ment by strikers or other per- sons; or (b) Suspension, lapse or cancella- tion of any license, lease or contract. But if the suspension, lapse or cancellation is directly caused by the suspension of operations, we will cover such loss that affects your Business Income during the period of re- storation. (1) Paragraph B.l.a., Ordinance or Law, does not apply to insurance under this Coverage Form. (2) We will not pay for any loss caused by: (a) Your cancelling the lease; (b) The suspension, lapse or can- cellation of any license; or (c) Any other consequential loss. c. Legal Liability Coverage Form (1) The following Exclusions do not apply to insurance under this Cov- erage Form: (a) Paragraph B.I.a., Ordinance or Law; (b) Paragraph B.l.c., Govern- mental Action; (c) Paragraph B.l.d., Nuclear haz- ard; (d) Paragraph B. Le., Power Fail- ure; and (e) Paragraph B.I.f., War and Mil- itary Action. (2) Contractual Liability We will not defend any claim or suit, or pay damages that you are legally liable to pay, solely by reason of your assumption of liability in a contract or agreement. (3) Nuclear Hazard (4) Any Extra Expense caused by or re- sulting from suspension, lapse or cancellation of any license, lease or contract beyond the period of resto- C. Limitations ration. (5) Any other consequential loss. b. Leasehold Interest Coverage Form We will not defend any claim or suit, or pay any damages, loss, ex- pense or obligation, resulting from nuclear reaction or radiation, or ra- dioactive contamination, however caused. 1. We will not pay for loss of or damage to: a. Steam boilers, steam pipes, steam engines or steam turbines caused by or resulting N 141035 12-88 Page 5 of 7 N M O O from any condition or event inside such equipment. But we will pay for loss of or damage to such equipment caused by or resulting from an explosion of gases or fuel within the furnace of any fired vessel or within the flues or passages through which the gases of combustion pass. b. Hot water boilers or other water heating equipment caused by or resulting from any condition or event inside such boilers or equipment, other than an explosion. c. Animals unless caused by the Specified Causes of Loss and then only if they are killed or their destruction is made neces- sary. d. Property that is missing, but there is no physical evidence to show what hap- pened to it, such as shortage disclosed on taking inventory. 2. We will not pay for loss or damage caused by or resulting from theft unless Special Causes of Loss is covered and theft is not excluded. a. We will not pay more than $5000 in any one loss due to theft of the following property. This limitation applies no matter how many items are taken or how many categories of property are involved in the loss. (1) furs and fur garments; (2) jewelry and jewels of any kind val- ued at more than $50 per item; (3) watches valued at more than $50 per watch; (4) precious metals or alloys of any kind. b. We do not cover theft of any property which is away from a covered location in an unattended vehicle unless: (1) the property is contained in a se- curely locked fully enclosed body or compartment of the vehicle; or (2) the property is in the custody of carriers for hire. D. Additional Coverage - these additional coverages apply only when Special Causes of Loss is cov- ered. 1. Collapse We will pay for loss or damage caused by or resulting from risks of direct physical loss in- volving collapse of a building or any part of a building caused only by one or more of the following: a. The specified causes of loss all only as insured against in the Coverage Part; b. Hidden decay of the Covered Property; C. Hidden insect or vermin damage of the Covered Property; d. Weight of people or personal property; e. Weight of rain that collects on a roof; f. Use of defective material or methods in construction, remodeling or renovation if the collapse occurs during the course of the construction, remodeling or reno- vation. We will not pay for loss or damage to the following types of property, if otherwise covered in this Coverage Part, under items b., c., d., a and f. unless the loss or damage is a direct result of the collapse of a building: outdoor radio or television antennas, including their lead-in wiring, masts or towers; awnings; gutters and down -spouts; yard fixtures; outdoor swimming pools; fences; piers; wharves and docks; beach or diving platforms or appurtenances; retain- ing walls; walks, roadways and other paved surfaces. Collapse does not include settling, crack- ing, shrinkage, bulging or expansion. This Additional Coverage will not in- crease the Limits of Insurance provided in this Coverage Part. 2. Water Damage 141035 12-88 Page 6 of 7 If loss or damage caused by or resulting from a covered water damage loss occurs, we will also pay the cost to tear out and replace any part of the building or structure to repair damage to the system or appliance from which the water or steam escapes. We will not pay the cost of repairing or re- placing the system or appliance itself; but we will pay the cost to repair or replace damaged parts of fire extinguishing equipment if the damage: a. Results in sprinkler leakage; or b. Is directly caused by freezing. E. Definitions 1. Specified Causes of Loss means one or more of the Basic Causes of Loss. If Special Causes of Loss is covered Specified Causes of Loss also includes falling objects; weight of snow, ice or sleet; water damage and building glass breakage. a. Sinkhole collapse means the sudden sinking or collapse of land into under- ground empty spaces created by the ac- tion of water on limestone or dolomite. It does not include the cost of filling N N sinkholes or sinking or collapse of land into man-made underground cavities. b. Falling objects does not include loss or damage to: 1. Personal property in the open; or 2. The interior of a building or struc- ture, or property inside a building or structure, unless the roof or an outside wall of the building or z 0 0 LL w N N d U LL W O O N U W 141035 12-88 N M O O structure is first damaged by a falling object. c. Water damage means accidental dis- charge or leakage of water or steam as the direct result of the breaking or cracking of any part of a system or appliance containing water or steam. 2. flood means a general and temporary condi- tion of partial or complete inundation of normally dry land areas from: a. the overflow of inland or tidal waters; or b. the unusual and rapid accumulation or run-off of surface waters from any source; or c. mudslides which are caused or precipi- tated by accumulation of water on or under the ground. 3. mechanical breakdown means any breakdown of a machine caused by or resulting from: a. any condition or event within the ma- chine, b. any part of the machine which interrupts the machine's intended or designed func- tion or operation, or C. any rupture or bursting caused by centri- fugal force. 4. pollutants means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes material to be recycled, reconditioned or reclaimed. 5. theft means any unlawful taking of personal property. Page 7 of 7 Property -Gard Amendatory Endorsement - 141073 05 93 Policy Amendment(s) Commercial Property This endorsement modifies insurance provided under the Building and Personal Property Coverage Form and the Causes of Loss Form. Covered Property Coverage for your personal property which is used to maintain or service the building or its premises insured under A.l.a.4 of Property -Gard form 142000 and your business personal property insured under A. Lb. of Property -Gard form 142000 is extended to include personal property you lease if the terms of an applica- ble written lease requires you to provide property in- surance. Replacement Cost Coverage applies to the leased per- sonal property covered by this endorsement if the Re- placement Cost Optional Coverage has been added to your policy. Exclusions Paragraph B.l.a. of the Causes of Loss form 141035 and 141035COMP is deleted and replaced by the fol- lowing: a. Ordinance or Law (1) The enforcement of any ordinance or law: (a) Regulating the construction, use or repair of any property; or (b) Requiring the tearing down or removal of any property, including the cost of re- moving its debris. (2) The increased costs of repairs due to the enforcement of any ordinance or law that: (a) Requires the demolition of parts of the same property not damaged by a Cov- ered Cause of Loss; or (b) Regulates the construction or repair of buildings, or establishes zoning or land use requirements at the premises de- scribed in the Declarations. Replacement Cost Paragraph G.3.e. of Property -Gard form 142000 is de- leted and replaced by the following: e. We will not pay more for loss or damage on a re- placement cost basis than the least of: (1) The Limit of Insurance applicable to the lost or damaged property; (2) The cost to replace, on the same premises, the lost or damaged property with other property: (a) Of comparable material and quality of that with which it was originally con- structed; and (b) Used for the same purpose; or (3) The amount you actually spend that is neces- sary to repair or replace the lost or damaged property. This Form must be attached to Change Endorsement when issued after the policy is written. One of the Fireman's Fund Insurance Companies as named in the policy JW5A"� Se etary 141073 5-93 wow — N N n cc 7 U) Z Veterinary Business Income Endorsement - 141091 12 96 Policy Amendment(s) Commercial Property Section C., Limits of Insurance, of the Business In- Payments under the following Additional Coverages come Coverage Form is replaced by the following: will not increase the applicable Limit of Insurance: The most we will pay for loss in any one occurrence is the actual loss of Business Income you sustain. But 1. Alterations and New Buildings; we will not pay for any loss of Business Income beyond 12 consecutive months after the date of direct physical 2. Civil Authority; loss or damage to the property at the premises de- scribed in the Declarations. 3. Extra Expense; or The limit applicable to the Coverage Extension is in 4. Extended Business Income. addition to the Limit of Insurance. o This Form must be attached to Change Endorsement when issued after the policy is written O 0 One of the Fireman's Fund Insurance Companies as named in the policy w N N 2 U w M Seq4tary President N_ U 0 141091 12-96 N M O O Veterinary Amendatory Endorsement - 141092 0199 Policy Amendment(s) Commercial Property This endorsement modifies insurance provided under the following: Property -Gard Building and Personal Property Form Causes of Loss Form Schedule Coverage Limit of Insurance Fire Department Service Charge $ 5,000 Pollutant Removal Any One Loss $ 10,000 Any One Policy Period $ 10,000 Fire Protective Equipment $ 1,000 Animal Damage to Leased Property Included Arson Reward $ 10,000 Newly Acquired or Constructed Property $ 500,000 Personal Effects Any One Person $ 1,000 Any One Loss $ 5,000 Property Off Premises $ 10,000 (If no entry appears above, information required to complete this Endorsement will be shown in the Declarations as applicable to this Endorsement.) A. The Property -Gard Building and Personal Prop- c. Fire Department Service Charge erty Coverage Form is amended as follows: When the fire department is called to 1. Item 2.c. of Section A., Coverage, is deleted. save or protect Covered Property from a 2. Item 2.j. of Section A., Coverage, is replaced Covered Cause of Loss, we will pay for by the following: your liability for fire department service charges: animals; 3. Item 4.c., Fire Department Service Charge, of Section A. Coverage, is replaced by the following: (1) Assumed by contract or agreement prior to loss; or (2) Required by local ordinance. This Form must be attached to Change Endorsement when issued after the policy is written. One of the Fireman's Fund Insurance Companies as named in the policy I Se retary 141092 1-99 Page 1 of 5 The most we will pay for fire department (2) Clean up and remove the fire extin- service charges is the Limit of Insurance guishing agent shown in the Schedule that applies to this Endorsement Part for Fire Department resulting from the discharge of a fire ex- Service Charge. tinguishing agent from fire protective equipment. No Deductible applies to this Additional Coverage. The discharge must: 4. Item 4.d., Pollutant Removal, of Section A. (1) Be caused by or resulting from a Coverage, is replaced by the following: Covered Cause of Loss; d. Pollutant Removal (2) Result from the intended operation of the fire protective equipment to We will pay your reasonable cost to ex- prevent or control a Covered Cause tract pollutants from land and water. of Loss; The release, discharge or dispersal of the pollutants must result from a covered (3) Be accidental; or cause of loss and must occur during the (4) Result from a malfunction of the fire policy period. This coverage only applies protective equipment. if no later than 180 days from the date of loss or from the end of the policy pe- We will not pay for loss or damage: riod, whichever comes first, you: (1) If you fail to use reasonable care to (1) Discover the loss, and maintain the fire protective equip- LL in proper operating condition; o(2) (2)Report the cost to us in writing. or o The most we will pay in any one loss is (2) Caused by discharge at the time of o the Limit of Insurance shown in the servicing, refilling or testing of the N Schedule that applies to this Endorse- fire protective equipment. N ment for Pollutant Removal - Any One Loss. The most we will pay under this Addi- Under this Additional Coverage, the tional Coverage is the Limit of Insurance shown in the Schedule that applies to this most we will pay for claims for loss Endorsement Part for Fire Protection which occurs at any one location during Equipment. the policy period is the Limit of Insur- ance shown in the Schedule that applies No deductible applies to this Additional to this Endorsement for Pollutant Re- Coverage. moval -Any One Policy Period. If this policy is written for a term of more than i. Animal Damage to Leased Business Real z one year, we will apply this limit sepa- Property rately to each consecutive year of the (1) We cover loss or damage to business policy period. real property, as described in Section 5. The following are added to Section 4., Addi- A.l.a. Coverage, which you do not tional Coverages, of Section A., Coverage: own but which you occupy for your business, caused by or resulting from h. Fire Protective Equipment animals which you do not own but are in your care, custody or control W We will pay your costs to: for treatment, grooming, boarding or breeding. The loss or damage N (1) Recharge or refill fire protective must be caused by or the result of a equipment; and Covered Cause of Loss. N co O O 141092 1-99 Page 2 of 5 Exclusion B.2.(6) of the Cause of Loss Form does not apply to cover- age afforded under this Additional Coverage as to loss or damage caused by birds, rodents or other animals in your custody or control for treatment, grooming boarding or breeding. (2) In addition to any other Exclusions contained in this policy, we will not cover loss or damage to property covered by this Additional Cover- age: (a) Caused by or resulting from wear and tear; (b) Caused by or resulting from your failure to use care in the maintenance of the leased property; (c) Which cannot be identified as occurring at a specific point in time and did not become known to you within 48 hours thereafter. (3) Animals, as used in this Additional Coverage, shall include rodents, reptiles and birds which are brought to you for veterinary care or board- ing. (4) The most we will pay for loss under this Additional Coverage is the Limit of Insurance that applies to your Business Personal Property. (5) Payments under this Additional Coverage will not increase the Limit of Insurance that applies to your Business Personal Property. The Limit of Insurance that applies to your Business Personal Property is the most we will pay in any one oc- currence for loss to your Business Personal Property and for loss cov- ered by this Animal Damage to Leased Business Real Property Ad- ditional Coverage. (6) Coverage provided by this Addi- tional Coverage for Animal Damage to Leased Business Real Property is primary insurance. j. Arson Reward If covered property sustains loss or dam- age caused by or resulting from fire, and the origin of such fire is determined to be arson, we will pay a reward to the person or persons who provide informa- tion that leads to the arrest and con- viction (for the crime of arson) of the individuals responsible for the ignition of the fire. The most we will pay under this Addi- tional Coverage, regardless of the number of people who provide information, is the Limit of Insurance shown in the Sched- ule that applies to this Endorsement Part for Arson Reward. 6. Item 5.a., Newly Acquired Property, of Sec- tion A. Coverage, is replaced by the following: a. Newly Acquired or Constructed Property If the Declarations show you have Busi- ness Real Property Coverage, we cover the buildings you acquire, including buildings which you are constructing, anywhere in the policy territory except Canada. If the Declarations show you have Business Personal Property Cover- age, we cover your business personal property at a newly acquired location, including locations which are under the course of construction, anywhere in the policy territory except Canada. The most we will pay for any one loss, whether the loss occurs to real or per- sonal property or to both, is the lesser of the following: (1) The Limit of Insurance shown in the Schedule that applies to this Endorsement Part for Newly Ac- quired or Constructed Property; (2) The value of the acquired property; (3) The cost to replace, on the same premises, the lost or damaged prop- erty with other property: 141092 1-99 Page 3 of 5 (a) Of comparable material and quality; and (b) Used for the same purpose; or (4) The amount you actually spend to that is necessary to repair or replace the lost or damaged property. This coverage ends: (1) 120 days from the date you acquire or begin construction of the prop- erty; or (2) On the date you report the values of the property to us; or (3) On the date this policy expires; whichever occurs first. shown in the Schedule that applies to this Endorsement for Personal Effects - Any One Person. No matter how many persons suffer loss to their personal effects, the most we will pay in any one loss is the Limit of In- surance shown in the Schedule that ap- plies to this Endorsement for Personal Effects - Any One Loss. 8. Item 5.d., Property Off Premises, of Section A. Coverage, is replaced by the following: d. Property Off Premises We cover covered property while it is temporarily away from the covered lo- cation to be cleaned, repaired or serviced. While at the temporary location, we cover it against loss from a cause of loss we cover applying to the property at the covered location. While in transit to and from the temporary location, the Special Causes of Loss apply to such property. The most we will pay for loss or damage to property off premises under this Cov- erage Extension is the Limit of Insurance shown in the Schedule that applies to this Endorsement Part for Property Off Premises. B. The Causes of Loss Form is amended as follows: 1. Item 2.d.(6) of Section B., Exclusions, is re- placed by the following: (6) Nesting or infestation, or discharge or release of waste products or secretions by insects, birds, rodents or other animals. 2. Item l.b. of Section C., Limitations, is re- placed by the following: b. Hot water boilers or other water heating equipment caused by or resulting from any condition or event inside such boilers or equipment, other than an explosion. This Limitation shall not apply to autoclaves and other similar equipment you use in your business for the exclusive purpose of sterilizing medical instru- ments. Page 4 of 5 When you report the values of the prop- erty to us, you will owe us additional premium from the date of acquisition or the beginning of construction. Coverage provided by this Coverage Ex - LL 0 tension shall not apply to buildings which are under the course of con - 0 o 0 struction: 0 (1) For which separate insurance cover- ( age has been obtained, either by the insured or by the contractor respon- sible for the construction, to cover the property during the course of construction; and (2) Such separate insurance coverage includes the interest of the insured. 7. Item 5.b.(1), Personal Effects, of Section A. Coverage, is replaced by the following: Z (1) We cover your personal effects and those of your officers, partners and employees while such property is at a covered lo- cation. This coverage does not apply to o any personal effects which are covered elsewhere by this policy or by any other insurance. We cover such property against loss from a cause of loss we cover LLapplying to your business personal prop- 0 erty at the location. _N The most we will pay to any one person U in any one loss is the Limit of Insurance W N M O O 1410921-99 shown in the Schedule that applies to this Endorsement for Personal Effects - Any One Person. No matter how many persons suffer loss to their personal effects, the most we will pay in any one loss is the Limit of In- surance shown in the Schedule that ap- plies to this Endorsement for Personal Effects - Any One Loss. 8. Item 5.d., Property Off Premises, of Section A. Coverage, is replaced by the following: d. Property Off Premises We cover covered property while it is temporarily away from the covered lo- cation to be cleaned, repaired or serviced. While at the temporary location, we cover it against loss from a cause of loss we cover applying to the property at the covered location. While in transit to and from the temporary location, the Special Causes of Loss apply to such property. The most we will pay for loss or damage to property off premises under this Cov- erage Extension is the Limit of Insurance shown in the Schedule that applies to this Endorsement Part for Property Off Premises. B. The Causes of Loss Form is amended as follows: 1. Item 2.d.(6) of Section B., Exclusions, is re- placed by the following: (6) Nesting or infestation, or discharge or release of waste products or secretions by insects, birds, rodents or other animals. 2. Item l.b. of Section C., Limitations, is re- placed by the following: b. Hot water boilers or other water heating equipment caused by or resulting from any condition or event inside such boilers or equipment, other than an explosion. This Limitation shall not apply to autoclaves and other similar equipment you use in your business for the exclusive purpose of sterilizing medical instru- ments. Page 4 of 5 C. If. The Declarations to the policy to which this Endorsement is attached shows you have Or- dinance or Law Coverage; and 2. The Limit(s) of Insurance that apply to Cov- erage B, Coverage C, or Coverages B and C Blanket of such coverage form is or are shown as INCLUDED, then the Limit of Insurance for such coverage(s) provided by the Ordinance or Law Coverage form is included within the Limit of Insurance shown in the Declarations as applicable to covered Busi- ness Real Property. The Limit of Insurance for the covered Business Real Property will be the most we will pay for all loss or damage occurring to covered Business Real Property, including any loss, damage or expense covered by the Ordinance or Law Coverage form. 141092 1-99 Page 5 of 5 0 LL (O LY N h a U LL W O 2 X Veterinarians Combination Plus Endorsement - 141108 01 99 Policy Amendment(s) Commercial Property This endorsement modifies insurance provided under the following: Property -Gard Building and Personal Property Form Causes of Loss Form Schedule Coverage Description Money, Checks, Stamps and Securities Money Orders and Counterfeit Paper Currency Depositors Forgery Fidelity Signs Exterior Glass Spoilage Cost of Preparing A Statement of Loss Tenant's Improvements and Betterments - Ordinance or Law Valuable Papers and Records Accounts Receivable Utility Service Glass Deductible Limit of Insurance Deductible $10,000 Policy Deductible Applies $ 5,000 Policy Deductible Applies $25,000 Policy Deductible Applies $25,000 Policy Deductible Applies $10,000 $250 $25,000 $250 $ 5,000 Policy Deductible Applies $ 2,500 No Deductible Applies $25,000 Policy Deductible Applies $25,000 Policy Deductible Applies $25,000 Policy Deductible Applies $ 50,000 Policy Deductible - Physical Damage 8 Hours - Business Income $250 (If no entry appears above, information required to complete this Endorsement will be shown in the Declarations as applicable to this Endorsement.) A. The Property -Gard Building and Personal Prop- erty Coverage Form is amended as follows: 1. Item 41, Money, Checks and Stamps, of Section A. Coverage, is replaced by the fol- lowing: f. Money, Checks, Stamps and Securities We cover money, checks, stamps and se- curities you use in your business as shown by your records. We cover them while they are contained in the building at a location we cover. We also cover them while they are being carried to or from a covered location. We cover such property against loss from a cause of loss we cover applying to your business personal property at the location. We do not cover any loss caused by or re- sulting from forgery; alterations; the giv- ing or surrendering of checks or money in exchange or purchase; or accounting or arithmetic errors or omissions. This Form must be attached to Change Endorsement when issued after the policy is written. One of the Fireman's Fund Insurance Companies as named in the policy Se retary President 141108 1-99 Page 1 of 10 N CJ O O The most we will pay for loss or damage committed by you or any of your to money, checks, stamps and securities employees, directors, or trustees: is the Limit of Insurance shown in the Schedule that applies to this Endorse- Schedule (a) Whether acting alone or in col- for Money, Checks, Stamps and lusion with other persons; or Securities. (b) Whether while performing ser - 2. Item 4.g., Money Orders and Counterfeit Pa- vices for you or otherwise. per Currency, of Section A. Coverage is re- (4) The most we will pay under this ex - placed by the following: tension for any one occurrence is the g. Money Orders and Counterfeit Paper Limit of Insurance shown in the Schedule that applies to this En- Currency dorsement for Depositors Forgery. Loss due to the acceptance in good faith, Under this Additional Coverage, all in exchange for merchandise, money or loss caused by one or more persons, services, of any post office or express and involving a single act or series money order, issued or purporting to of acts, is considered one occurrence. have been issued by any post office or (5) Additional conditions: express company, if such money order is not paid upon presentation, or due to the (a) Facsimile signatures: as to acceptance in good faith in the regular promissory notes, we will treat course of business of counterfeit United mechanically reproduced fac- States or Canadian paper currency. simile signatures the same as handwritten signatures. The most we will pay for loss under this Money Orders and Counterfeit Paper (b) Proof of Loss: at our request, Currency Additional Coverage is the you must include with your Limit of Insurance shown in the Sched- proof of loss any instrument ule that applies to this Endorsement for involved in that loss, or, if that Money Orders and Counterfeit Paper is not possible, an affidavit set - Currency. ting forth the amount and cause of loss. 3. The following are added to item 4., Additional Coverages, of Section A., Coverage: (6) If there is other insurance covering the same loss or damage provided h. Depositors Forgery by this Additional Coverage, whether covered by this policy or (1) We will pay for your actual loss any other policy, we will pay only caused by forgery or alteration of for the amount of covered loss or any check, promissory note or ne- damage in excess of the amount due gotiable instrument. from that other insurance. But we will not pay more than the applica- (2) We will pay for this loss whether the ble Limit of Insurance. check, promissory note or negoti- able instrument is: i. Fidelity (a) Made by or drawn by you; (1) We will pay for direct loss of or damage to: (b) Drawn upon you; or (a) Covered business personal pro - (c) Made or drawn by an agent of perty; yours. (b) Covered property of others, (3) We will not pay for loss resulting subject to the sub -limit set forth from any dishonest or criminal act in Item A. 5., Coverage 141108 1-99 Page 2 of 10 Extensions, subsection b. (2) computation or a profit and Property of Others, of the Pro- loss computation. perty-Gard Building and Per- sonal Property Coverage Form. (3) The most we will pay for loss or The sub -limit for property of damage in any one occurrence is the others will not apply if property lessor of: of others is specifically covered in the Declarations that apply (a) The Limit of Insurance shown to the Property -Gard Building in the Schedule that applies to and Personal Property Cover- this Endorsement for Fidelity; age Form or by endorsement to or the policy. (b) The sub -limit applicable to the (c) Money and securities; lost of damaged property that is contained in the Property - (d) Animals you do not own but Gard Building and Personal are in your care, custody or Property Coverage Form or control for treatment, groom- any endorsements thereto. ing, boarding or breeding All loss or damage caused by one resulting from dishonest or fraudu- or more persons and involving a lent acts committed by any of your single act or series of acts, is consid- employees acting alone or in collu- ered one occurrence. sion with other persons (except you We will not pay more for loss sus - or your partner) while they work for tained by more than one Insured LL you and for 30 days after they leave than the amount we would pay if all oyour employment with manifest in- the loss had been sustained by one o tent to: 0 0 Insured. 0 o (a) Cause you to sustain loss or (4) If the loss or damage is to an animal damage; and also in your care, custody or control, the (b) Obtain financial benefit (other value of the animal will be deter - than salaries, commissions, fees, mined as the cost to replace the ani - bonuses, promotions, awards, mal with another animal of the same profit sharing, pensions, or quality and breed. However, in no other employee benefits earned event will we pay more than the in the normal course of em- least of the following: ployment) for (a) The amount you actually spend i. Any employee; or that is necessary to replace the animal; ii. Any other person or or- or- (b) The cost to replace the animal ganization. with another animal: (2) We will not pay for loss or damage: i. Of comparable quality; and (a) Resulting from any dishonest ii. Of the same breed; or or criminal act that you or any of your partners commit (c) The Limit of Insurance shown whether acting alone or in col- in the Schedule that applies to LLlusion with other persons; or this Endorsement for Fidelity. W o (b) The only proof of which as to (5) We will pay only for loss or damage N its existence or amount is de- you sustain through acts committed U pendent upon an inventory or occurring during the policy 00 141108 1-99 N O O Page 3 of 10 141108 1-99 period. Regardless of the number (b) Any natural person employed of years this policy or subsequent by an employment contractor renewals remain in force or the while that person is subject to number of premiums paid, no Limit your direction and control and of Insurance accumulates from year performing services for you ex - to year or policy period to policy cluding, however, any such period. person while having care and custody of property outside a (6) Immediately upon discovery by you, covered location. or any of your partners, officers or directors not in collusion with the But employee does not mean employee, that an employee has any: committed a dishonest or fraudulent i. Agent, broker, factor, act, we will not pay for any loss or commission merchant, damage due to further acts by the consignee, independent same employee. contractor or representative of the same general charac- (7) We will pay only for covered loss or ter; or damage discovered no later than one year from the end of this policy pe- ii. Director or trustee except riod. while performing acts coming within the scope If the policy to which this Coverage of the usual duties of an Form is attached is cancelled or ter- employee. minated as to any Insured, loss sus- tained by that Insured is covered (10) In compliance with certain pro - only if discovered no later than one visions of the Employee Retirement year from the date of that cancella- Income Security Act (ERISA): tion or termination. (a) Employee also includes any na- (8) Item A.2.j. of the Property -Gard tural person who is: Building and Personal Property i. A trustee, an officer, em - Coverage Form is excluded, but ployee, administrator or a only with respect to coverage pro- manager, except an admin- vided by this Additional Coverage istrator or a manager who for Fidelity. is an independent contrac- tor, of any Employee Wel- (9) Employee, as used in this Additional fare or Pension Benefit Coverage, means: Plan (hereafter called Plan) insured under this insur- (a) Any natural person: ance and i. While in your service (and ii. Your director or trustee for 30 days after termi- while that person is handl- nation of service); and ing funds or other property of any Plan insured under ii. Whom you compensate this insurance. directly by salary, wages or commissions; and (b) If any Plan is insured jointly with any other entity under this iii. Whom you have the right policy, you or the Plan Admin - to direct and control while istrator must select a Limit of performing services for Insurance for this Additional you; or Coverage that is sufficient to Page 4 of 10 0 0 0 0 N N n provide an amount of insurance for each Plan that is at least equal to that required if each Plan were separately insured. (c) If the Insured first named in the Declarations that apply to this policy is an entity other than a Plan any payment we make to that Insured for loss sustained by any Plan will be held by that Insured for the use and benefit of the Plan(s) sustaining the loss. (d) If two or more Plans are in- sured under this insurance, any payment we make for loss: i. Sustained by two or more plans or ii. Of commingled funds or other property of two or more Plans that arises out of one occur- rence, is to be shared by each Plan sustaining loss in the pro- portion that the amount of in- surance required for each such Plan under ERISA provisions bears to the total of those amounts. (e) The Deductible provision con- tained in this policy does not apply to loss sustained by any Plan subject to ERISA which is insured under this Additional Coverage. (11) If there is other insurance covering the same loss or damage provided by this Additional Coverage, LL W whether covered by this policy or 1-4 any other policy, we will pay only for the amount of covered loss or Wdamage in excess of the amount due from that other insurance. But we N will not pay more than the applica- U ble Limit of Insurance. 0 141108 1-99 N M O O Signs If you occupy a location you do not own, and the location appears as a Spe- cifically Identified Location on the Dec- larations, we cover the exterior signs you use in your business at the covered lo- cation. We will cover the signs for direct physical loss or damage from any Cov- ered Cause of Loss applying to your Bu- siness Personal Property. We will not pay under this Additional Coverage for loss of or damage to any sign at a location which you are required by written lease to insure the Business Real Property, excepting specific re- quirements in a written lease or other contract for you to insure your signs at the location. The most we will pay for loss or damage covered by this Additional Coverage is the Limit of Insurance shown in the Schedule that applies to this Endorsement for Signs. The Limit of Insurance shown is the most we will pay regardless of the number of signs lost or damaged in a single occurrence. This Additional Coverage shall apply only as excess insurance over any insur- ance provided by or for the building owner. k. Exterior Glass If you occupy a location you do not own, and the location appears as a Spe- cifically Identified Location on the Dec- larations, we cover the exterior glass of the building for which you are required by written lease to insure. We will cover the exterior glass for direct physical loss or damage from any Covered Cause of Loss applying to your Business Personal Property. We will not pay under this Additional Coverage for loss of or damage to any glass at a location which you are required by written lease to insure the Business Real Property, excepting specific re- quirements in a written lease or other contract for you to insure the exterior glass at the location. Page 5 of 10 1. The most we will pay for loss or damage covered by this Additional Coverage is the Limit of Insurance shown in the Schedule that applies to this Endorse- ment for Exterior Glass. The Limit of Insurance shown is the most we will pay regardless of the amount of exterior glass lost or damaged in a single occurrence. This Additional Coverage shall apply only as excess insurance over any insur- ance provided by or for the building owner. Spoilage (1) We will pay for loss or damage to your perishable goods contained in refrigeration units at covered lo- cations caused by or resulting from: (a) Mechanical or electrical break- down or failure of the refriger- ation units, their controls and related equipment which are owned or used by you; (b) Refrigerant leakage; (c) A power failure beyond your control which caused a change in temperature or humidity; or (d) Contamination by the refriger- ant. (2) We will not pay for loss or damage to perishable goods caused by or re- sulting from: (a) The disconnection of any re- frigerating, cooling or humidity control system from the source of power; (b) The deactivation of electrical power caused by the manipu- lation of electrical power or current; (c) The inability of a power source at the described premises to provide sufficient power due to lack of generating capacity to meet demand; (d) The inability of an electric util- ity company or any other power source to provide suffi- cient power due to: i. Lack of fuel; or ii. Governmental order. (e) Breaking of any glass that is a permanent part of any refriger- ating, cooling or humidity con- trol unit; (f) Failure to use reasonable care to maintain all refrigerating, cooling or humidity control systems in proper operating condition; (3) We will not pay for loss or damage if you fail to use reasonable care to maintain all refrigeration units in proper operating condition. (4) Perishable stock means personal property: (a) Maintained under controlled conditions for its preservation; and (b) Susceptible to loss or damage if the controlled conditions change. (5) The most we will pay for loss or damage in any one occurrence is the Limit of Insurance shown in the Schedule that applies to this En- dorsement for Spoilage. in. Cost of Preparing A Statement of Loss When a Covered Causes of Loss occurs which exceeds your deductible for such loss, we will reimburse you the reason- able expenses you incur to make an in- ventory, appraisal or adjustment in order to prepare your statement of loss. In addition to the exclusions in the printed policy form to which this en- dorsement is attached, this Additional Coverage does not cover the following: 141108 1-99 Page 6 of 10 (1) Legal expenses of any kind, includ- (a) Until the property is actually ing but not limited to lawyer's fees, repaired or replaced by you at expenses and costs; and the same or another premises; and (2) Fees and costs of public adjusters hired by you to represent your in- (b) Unless the repairs or replace- terests. ment are made as soon as rea- sonably possible after the loss The most we will reimburse you for the or damage, not to exceed two expenses covered by this Additional years. We may extend this pe - Coverage is the Limit of Insurance riod in writing during the two shown in the Schedule that applies to this a cause of loss we cover applying busi- Endorsement for Cost of Preparing a years. Statement of Loss. We will not pay under this Additional (2) We will not pay for the increased Coverage for the costs to test for, moni- n. Tenant's Improvements and Betterments tor, clean up, remove, contain, treat, de- papers and records include books, maps, toxify or neutralize, or in any way If you occupy a location you do not respond to, or assess the effects of pollu- own, and the location appears as a Spe- tants. cifically Identified Location on the Dec- The most we will pay for loss due to the larations, we will pay the increased cost increased cost of construction as covered to repair or reconstruct damaged portions by this Additional Coverage is the Limit of the improvements and betterments of Insurance shown in the Schedule that made or acquired at your expense at the applies to this Endorsement for Tenant's x Specifically Identified Location when theLL Improvements and Betterments - Ordi- co increased cost is a consequence of en- nance or Law. forcement of any building, zoning or land Page 7 of 10 o use ordinance or law. We will only pay This Additional Coverage shall apply g the increased cost if the loss or damage only as excess insurance over any other co to the improvements and betterments valid and collectible insurance covering N made or acquired at your expense is the same increased costs of construction caused by a cause of loss we cover ap- for your Tenant's Improvements and plying to your business personal property Betterments, including but not limited to at the location. insurance provided by or for the building However: owner. (1) This Additional Coverage applies 4. Item 5.c. Valuable Papers and Records, of only if the Specifically Identified Section A. Coverage is replaced by the fol - Location is restored or remodeled lowing: for your occupancy and such occu- c. Valuable Papers and Records panty is similar to that which existed Z immediately preceding the covered We cover the valuable papers and records cause of loss, unless such occupancy you use in your business against loss from is not permitted by zoning or land a cause of loss we cover applying busi- o use ordinance or law. ness personal property at the covered lo- (2) We will not pay for the increased cation where the loss occurs. Such cost of construction if you do not papers and records include books, maps, a repair, replace or remodel your im- films, drawings, abstracts, deeds, mort- gages and manuscripts and those records W which exist in electronic or magnetic o (3) We will not pay any increased costs media and film, negatives, discs, slides, N of construction under this Addi- photographs and video tape. We only U tional Coverage: cover them while they are in that part of LU N M O O 141108 1-99 Page 7 of 10 the building which you occupy at the damage by a Covered Cause of Loss covered location. to the property described in para- graph (4) below, not on the premises We will pay the research and other costs of a covered location. necessary to reproduce, replace or restore applies to this Endorsement for such papers and records. The most we We will only pay for the actual loss will pay for loss or damage to Valuable you sustain that is greater than the Papers and Records under this Coverage Deductible amount shown in the Extension is the Limit of Insurance Schedule that applies to this En - shown in the Schedule that applies to this dorsement for Utility Service - Phy- Endorsement for Valuable Papers and sical Damage. Records. (3) We will not pay under this Coverage (2) If the Declarations to the Property - Item 5.g., Accounts Receivable, of Section Gard Building and Personal Prop - A. Coverage, is replaced by the following: erty Coverage Form shows you have age Extension is the Limit of Insurance Business Income Coverage, we will g. Accounts Receivable also pay for loss of Business Income We cover your records of balances owed or Extra Expense at the covered lo - you by your customers while the records cation caused by the interruption of are at a covered location. We cover such utility service to the covered lo - cation. The interruption must result records against loss from a cause of loss from direct physical loss or damage we cover applying at the location. by a Covered Cause of Loss to the We will pay the following when they re- property described in paragraph (4) sult from loss or damage to these records: below, not on the premises of a Covered Property caused by the in- covered location. (1) Sums owed you by customers which you cannot collect; We will only pay for the actual loss you sustain after the number of (2) Interest charges you must pay on hours shown in the Schedule that loans obtained to offset impaired applies to this Endorsement for collections; Utility Service - Business Income has past following the direct physical (3) That part of your collection costs loss or damage to the off -premises that exceeds your normal costs; property to which this endorsement applies. (4) Other costs you reasonably incur to restore your records. (3) We will not pay under this Coverage Extension for any loss or damage to The most we will pay for loss or damage your property, or for any loss of under this Accounts Receivable Cover- Business Income that may result age Extension is the Limit of Insurance from damage to your property or to shown in the Schedule that applies to this the property described in paragraph Endorsement for Accounts Receivable. (4) below, caused directly or indi- 6. The following is added to item 5., Coverage rectly by the actual or alleged ina- Extensions, of Section A., Coverage: bility, failure, malfunction or inadequacy of a utility service's h. Utility Services electronic equipment or software, including data and media, to cor- (1) We will pay for loss of or damage to rectly recognize, process, distinguish, Covered Property caused by the in- interpret or accept one or more dates terruption of service to the or times. An example is the inability premises. The interruption must re- of computer software to recognize sult from direct physical loss or the year 2000. 141108 1-99 Page 8 of 10 If loss or damage to your Covered iii. Substations; Property by the specified causes of LL loss results, we will pay for that re- iv. Transformers; and sulting loss or damage. Addi- (b) Communication Supply Ser- tionally, we will pay for your actual v. Transmission lines, loss of Business Income and Extra It does not include overhead Expense (if you have Business In- transmission lines. come Coverage) if loss or damage to the property described in paragraph (5) The most we will pay in any one (4) below by the specified causes of loss for this Additional Coverage, loss results, and you sustain actual whether the loss is for: loss of Business Income or Extra 7. The following Deductible Provision shall ap- Expense because of interruption of (a) Direct physical loss or damage utility service caused directly by such to Covered Property; or loss or damage. this Endorsement: (b) Loss of Business Income or (4) Utility Services Extra Expense; or (a) Water Supply Services, mean- (c) A combination of (5)(a) and ing the following types of pro- (5)(b) above perty supplying water to the covered location: is the Limit of Insurance shown in the Schedule that applies to this i. Pumping stations; and Endorsement for Utility Service. ii. Water mains. The Limit of Insurance shown in the LL Schedule for Utility Service is part (b) Communication Supply Ser- of, not in addition to, the Limit of o vices, meaning property sup - Insurance stated in the Declarations g plying communication services, as applicable to your Covered Pro - including telephone, radio, mi- perty and Business Income. N crowave or television services to x the covered location, such as: 7. The following Deductible Provision shall ap- ply with respect to the coverages provided by i. Communication trans- this Endorsement: mission lines, including optic fiber transmission We will not pay for loss or damage in any one lines; occurrence until the amount of loss or dam- age exceeds the Deductible shown in the ii. Coaxial cables; and Schedule that applies to the described cover- age. We will then pay the amount of loss or iii. Microwave radio relays ex- damage in excess of the Deductible, up to the cept satellites. applicable Limit of Insurance for the de- scribed coverage. It does not include overhead transmission lines. If more than one deductible is applicable un- der this Endorsement, or under the Proper - (c) Power Supply Services, mean- ty-Gard Building and Personal Property LL W ing the following types of pro- Coverage Form, we will only apply the single W) perty supplying electricity, highest amount that is applicable. a steam or gas to the covered lo - a cation: We have the right, but not the duty to pay W any claim in full, including the amount of i. Utility generating plants; your deductible in order to settle a claim. If N we elect to pay any part of your deductible, ii. Switching stations; you agree to reimburse us for the full amount 141108 1-99 N M O O Page 9 of 10 of such deductible. Upon receipt of a bill for deductible amounts, you will pay us promptly. 8. The following Glass Deductible Provision is added: We will not pay for loss or damage to glass in any one occurrence until the amount of loss or damage exceeds the Glass Deductible shown in the Schedule that applies to this Endorsement. We will then pay the amount of loss or damage in excess of the Deductible, up to the applicable Limit of Insurance. If more than one deductible is applicable un- der this Endorsement or under the Property - Gard Real and Personal Property Coverage Form, we will only apply the highest amount that is applicable. 9. The following is added to Section H. Defi- nitions: 12. Securities means negotiable or non-neg- otiable papers which represent money. B. The Causes of Loss Form is amended to include the following Coverage Enhancement: Coverage Enhancement - Electronic Equipment, Software, Data and Media 1. Sections B.2.a. and B.2.d.(7) of the Causes of Loss Form are deleted, but only with respect software, data, media, computer programs and the following types of electronic equip- ment: a. Electronic data processing equipment; b. Radiology equipment; c. Medical monitoring equipment, includ- ing, but not limited to pulse oximeters and anesthesia monitoring equipment; d. Imaging equipment, including, but not limited to ultrasound, endoscope equip- ment; e. Laboratory equipment; f. Autoclaves. 2. This Coverage Enhancement does not apply to: a. Building electrical systems, wiring, or equipment used to monitor the electrical components, wiring or other electrical apparatus attached to or part of business real property. b. Equipment not identified in 1. above; c. Vacuum tubes and gas tubes; d. Computed tomography equipment, in- cluding single photon emission equip- ment; e. Magnetic resonance imaging equipment; f. Positron emission tomography equip- ment. g. Software which cannot be replaced with other software of the same kind or qual- ity. h. Data, if such data cannot be reproduced by utilizing existing records and materi- als; (1) Owned by you; or (2) Which are in your care, custody or control. 3. a. Electronic data processing equipment means machines, or a network of ma- chines, whose function is the acceptance and processing of data in accordance with a plan or computer program. b. Data means facts, concepts or in- structions which are converted to a form usable in your data processing oper- ations, including computer programs. c. Computer programs means data used to direct the computer equipment, including diagrams or other records which can be used to reproduce programs. d. Media means materials on which data are recorded or stored. e. Software means any combination of data, media or computer programs. 141108 1-99 Page 10 of 10 U) U) z Veterinary Flood Endorsement - 141872 01 99 Policy Amendment(s) Commercial Property Coverage Insured: DOVER SHORES PET CARE CENTER Producer: ABD-Assoc. Div, CVMA South Schedule Locations to which this Endorsement Applies: Loc. # Policy Number: 8 H1 MZG 07186870 Effective Date: 07/01/00 (If no entry appears above, information required to complete this Endorsement will be shown in the Declarations as applicable to this Endorsement.) Business Personal Property Flood Coverage We will pay for direct physical loss or damage to your Business Personal Property which is caused by, result- ing from, contributed to or made worse by any one flood. We will only pay for the loss if the flood occurs at a location shown in the Schedule that applies to this Endorsement. This Endorsement does not apply to loss to Business Real Property, or for your Extra Expense or loss of Business Income which is caused directly or indirectly by flood, including but not limited to any suspension of operations or period of restoration which may occur as a result of flood damage to Business Personal Prop- erty. The most we will pay for loss under this Business Per- sonal Property Flood Coverage is the Limit of Insur- ance that applies to your Business Personal Property. Payments under this Business Personal Property Flood Coverage will not increase the Limit of Insurance that applies to your Business Personal Property. The Limit of Insurance that applies to your Business Personal Property is the most we will pay in any one occurrence for loss to your Business Personal Property, including the loss caused by or resulting from flood. The Deductible that applies to your Business Personal Property will also apply to the coverage afforded by this Endorsement. This Endorsement is otherwise subject to all the terms, conditions, provisions and stipulations of the policy to which it is attached. This Form must be attached to Change Nndorsement when issued after the policy is written. One of the Fireman's Fund Insurance Companies as named in the policy Se retary N U n 1418721-99 N Cl O 0 INFO i i Property -Gard Building and Personal Property Coverage Form 142000 12 88 Commercial Property Coverage Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and what is and is not covered. Throughout this policy the words you and your refer to the Named Insured shown in the Declarations. The words we, us and our refer to the Company providing this insurance. A location number appears in the Declarations for each covered location. Any premises number that appears in this policy applies to the location with the same number. Some words and phrases that appear in bold face or quotation marks have special meaning. Refer to Defi- nitions. A. Coverage We will pay for direct physical loss of or damage to Covered Property at the location described in the Declarations caused by or resulting from any Covered Cause of Loss. 1. Covered Property Covered Property, as used in this Coverage Part, means the following types of property for which a Limit of Insurance is shown in the Declarations: a. Business Real Property We cover the building at the location shown in the Declarations. This includes all of the following: (1) completed additions; (2) permanently installed fixtures, ma- chinery and equipment; (3) outdoor fixtures and structures, in- cluding light standards, fences, signs and well -housings; and (4) personal property you own which is used to maintain or service the building or its premises. This in- cludes (a) fire extinguishing equipment; (b) outdoor furniture; (c) floor covering; and (d) appliances used for refrigerat- ing, ventilating, cooking, dishwashing or laundering. (5) If not covered by other insurance, we cover: (a) additions under construction, alterations and repairs to the building or structure. (b) materials, equipment, supplies and temporary structures which are within 100 feet of the de- scribed premises and are used for making additions, alter- ations or repairs to the building or structure. b. Your Business Personal Property We cover the following items of personal property which you own and use in your business while they are in or on the This Form must be attached to Change Endorsement when issued after the policy is written. One of the Fireman's Fund Insurance Companies as named in the policy Se etary MM APresident 14200012-88R Page 1 of 13 premises at the location described in the Item D - Property at Locations Not Declarations or in the open (or in a ve- Specifically Identified. This includes hicle) within 100 feet of the described all the types of property under premises. ITEMS A, B, and C. We only cover such property while it is anywhere (1) Property at Specifically Identified within the policy territory, except Locations Canada. Your business personal property at (3) Property Not At a Location identified locations is shown in the Declarations as: Item A - Stock. Your business personal property is This includes stock, materials and covered, while in transit between supplies of all kinds. It includes places in the policy territory. It. is your interest in labor, materials or shown in the Declarations as: services furnished or arranged by Item E - Property in The Following you on personal property owned by Situations. This includes all the others. types of property covered under Item B -Furniture, Fixtures, Equip- Items A,B, and C. while it is: ment and Machinery. This includes (a) IN DUE COURSE OF all such items of property that are TRANS IT -INS URED'S VE - not permanently installed in the HICLES. This covers busi- building. It also includes trees, ness personal property which is plants and shrubs used inside the in, on, connected to or being building as decoration. towed by a vehicle which you LL own, operate or lease. Item C - Tenant's or Condominium o 0 Unit Owner's Improvements. This (b) IN CARE, CUSTODY OR S includes your use interest as tenant CONTROL OF in improvements and betterments. SALESPERSONS. This N Improvements and betterments are covers business personal prop - fixtures, alterations, installations or erty which is not covered under additions: (a) above while it is away from your premises in the care, cus- (a) Made a part of the building or tody or control of any of your structure you occupy but do salesperson(s). not own; and (c) IN CUSTODY OF CARRI- (b) You acquired or made at your ERS FOR HIRE. This cov- expense but cannot legally re- ers business personal property D which is not covered under (a) D move. or (b) above while it is in transit If you are a condominium unit- or in the custody of carriers for owner, this includes fixtures, alter- fie. ations, installations or additions C. Personal Property of Others o which are a part of the building and w are owned by you as a unit -owner. We cover personal property of others only to the extent that such coverage is 2 Property at Locations Not S ecif- () p y p provided under Coverage Extensions, LLically Identified unless otherwise specifically covered in W the Declarations or by endorsement to o Your business personal property at this policy. N locations not identified is shown in U the Declarations as: 2. Property Not Covered W N M O O 14200012 -sax Page 2 of 13 We do not cover any of the following prop- erty, unless specifically covered in the Decla- rations or by endorsement to this policy: a. land and land values; water; roadways, walks, patios or other paved surfaces; b. the cost of excavations, grading or filling; c. foundations of buildings, structures, ma- chinery or boilers if such foundations are below ground; d. equipment or machinery below the low- est basement floor or (when there is no basement) below ground; e. underground pipes, flues or drains; f. retaining walls that are not part of the building; g. growing crops outside of buildings; h. personal property you sell under any de- ferred payment plan (such as, a condi- tional sale, trust agreement or installment plan) after such property has been deliv- ered to the customer; i. any vehicle designed and intended for highway use except: (1) those operated solely at a covered location; (2) motorcycles and similar motorized vehicles you sell; (3) trailers which you sell and which are designed for use with private pas- senger automobiles. j. animals except those you sell; k. aircraft; 1. watercraft while afloat; m. money and securities except as covered under Additional Coverages subsection f. Money, Checks and Stamps and sub- section g.Money Orders and Counterfeit Paper Currency. n. Property of Others except as covered under Coverage Extensions subsection b. (2) Property of Others. o. Property which is more specifically de- scribed and covered under this policy or any other policy. 3. Covered Causes of Loss See applicable Causes of Loss Form as shown in the Declarations. 4. Additional Coverages (Not Subject to the Coinsurance Additional Condition) a. Debris Removal We will pay your reasonable cost to re- move the debris of covered property caused by or resulting from a covered cause of loss which occurs during the policy period. This coverage only applies if not later than 180 days from the date of loss or from the end of the policy period, whichever comes first, you: (1) discover the loss, and (2) report the cost to us in writing. We will pay up to 25% of the sum of: (1) the direct physical loss otherwise payable under the policy, and (2) the deductible. But this limitation does not apply to any additional debris removal limit provided in the limit of insurance section. We will not Pay: (1) the cost to extract Pollutants from land or water (except as provided in d. Pollutant Removal. (2) the cost to repair, replace or restore property damaged or destroyed by debris removal; (3) the cost to remove debris from any location used for the handling, treatment, storage or disposal of waste unless it is a specifically iden- tified location shown in the Decla- rations. 142000 12 -SSR Page 3 of 13 b. Preservation of Property Under this Additional Coverage, the most we will pay for claims for loss If it is necessary to move Covered Prop- which occurs at any one location during erty from the described premises to pre- the policy period is $10,000. If this pol- serve it from loss or damage by a icy is written for a term of more than one Covered Cause of Loss, we will pay for year, we will apply this limit separately direct physical loss or damage to that to each consecutive year of the policy property: period. (1) While it is being moved or while We will not pay: temporarily stored at another lo- cation; and (1) the cost to repair, replace or restore property damaged or destroyed by (2) Only if the loss or damage occurs extraction of pollutants; within 10 days after the property is first moved. (2) the cost to extract pollutants from land or water: C. Fire Department Service Charge (a) at any location used for the When the fire department is called to handling, treatment, storage or save or protect Covered Property from a disposal of waste unless it is a Covered Cause of Loss, we will pay up specifically identified location to $1,000 for your liability for fire de- shown in the Declarations; partment service charges: (b) at any location not specifically (1) Assumed by contract or agreement identified in the Declarations if LL prior to loss; or the pollutants have been re- leased, dispersed or discharged 0 (2) Required by local ordinance. from a location which is used No Deductible applies to this Additional for the handling, treatment, storage or disposal of waste and M Coverage. which is not specifically identi- d. Pollutant Removal feed in the Declarations; or We will pay your reasonable cost to ex- (c) at any location if the pollutants tract pollutants from land and water. arise out of or are a conse- quence of nuclear reaction or The release, discharge or dispersal of the radiation, or radioactive con - pollutants must result from a covered cause of loss and must occur during the tamination. policy period. This coverage only applies e. F.O.B. Shipments if no later than 180 days from the date of loss or from the end of the policy pe- We cover the goods you sell to others riod, whichever comes first, you: which are shipped to them at their risk ? of loss. But this coverage only applies if (1) discover the loss, and you cannot collect on the bill of sale be- (2) report the cost to us in writing. cause: o (1) the goods have been damaged by a The most we will pay in any one loss is cause of loss we cover; and W the lesser of: cV (2) your customer has refused or is un - (1) 10% of the applicable Limit of Li- able to pay. W ability; or If this occurs, we will adjust the loss as (2) $10,000 if the property were your business N U LU N M O O 142000 12-88Rco Page 4 of 13 personal property to the extent that such newly acquired location anywhere in the property is covered by this policy. policy territory except Canada. The most we will pay for any one loss is We will not pay more than the Limit of $250,000, whether the loss occurs to real Insurance in the Declarations that applies or personal property or to both. This to property in the custody of carriers for coverage ends: hire. (1) 120 days from the date you acquire f. Money, Checks and Stamps the property; or We cover money, checks and stamps you (2) on the date you report the values of use in your business as shown by your the property to us; or records. We cover them while they are contained in the building at a location (3) on the date this policy expires; we cover. We also cover them while they whichever occurs first. are being carried to or from a covered location. We cover such property against When you report the values of the prop - loss from a cause of loss we cover apply- erty to us, you will owe us additional ing to your business personal property premium from the date of acquisition. at the location. We do not cover any loss b. Personal Effects and Property of Others caused by or resulting from forgery; al- terations; the giving or surrendering of (1) Personal Effects checks or money in exchange or pur- chase; or accounting or arithmetic errors We cover your personal effects and or omissions. Our limit of liability for those of your officers, partners and this coverage is $1,000 in any one loss. employees while such property is at a covered location. This coverage g. Money Orders and Counterfeit Paper does not apply to any personal ef- Currency fects which are covered elsewhere by this policy or by any other insur- Loss due to the acceptance in good faith, ance. We cover such property in exchange for merchandise, Money or against loss from a cause of loss we services, of any post office or express cover applying to your business money order, issued or purporting to personal property at the location. have been issued by any post office or express company, if such money order is No matter how many persons suffer not paid upon presentation, or due to the loss to their personal effects, we will acceptance in good faith in the regular not pay more than $1,000 to any course of business of counterfeit United one person in any one loss. States or Canadian paper currency. Our limit of liability for this coverage is $1000 Nor will we pay more than the les - in any one loss. sor of $10,000 or 10% of the limit on business personal property at the 5. Coverage Extensions (Not Subject to the location where the loss occurs, no Coinsurance Additional Condition) matter how many persons suffer loss. a. Newly Acquired Property (2) Property of Others If the Declarations show you have Busi- ness Real Property Coverage, we cover We cover property of others while it the buildings you acquire anywhere in is at a covered location. We cover the policy territory except Canada. If the such property against loss from a Declarations show you have Business cause of loss we cover applying to Personal Property Coverage, we cover your business personal property at your business personal property at a the location. 14200012-88R Page 5 of 13 We will not pay more than the lesser commotion; smoke; vehicles, vandalism of $10,000 or 10% of the limit on or malicious mischief. We will not pay business personal property at the more than the lesser of $10,000 or 10% location where the loss occurs. of the combined limits on business real property and business personal property C. Valuable Papers and Records at the location where the loss occurs, but We cover the valuable papers and records not more than $250 for any one tree, you use in your business against loss from shrub or plant. a cause of loss we cover applying to f. Extra Expense, Expediting Expense and business personal property at the covered Loss Adjustment Expense location where the loss occurs. Such papers and records include books, maps, When a loss covered by this policy oc- f"ilms, drawings, abstracts, deeds, mort- curs, we will pay the extra expense you gages and manuscripts and those records necessarily incur to continue or resume which exist in electronic or magnetic your normal business operations. We will media and film, negatives, discs, slides, pay only that part of the total expense photographs and video tape. We only that exceeds the amount which ordinarily cover them while they are in that part of would have been incurred to conduct the building which you occupy at the your business. We will not be liable for covered location. any longer period of time than is neces- sarily required to rebuild, repair or re - We will pay the research and other costs place the damaged property. This period necessary to reproduce, replace or restore of time is not limited by the expiration such papers and records. We will not date of the policy. pay more than the lesser of $10,000 or LL 10% of the limit on business personal We will also pay the reasonable cost you 0 property at the location where the loss incur to expedite repairs to covered 0 occurs. property. This includes payment of overtime wages and the extra cost of ex - ts _ d. Property Off Premises press or other rapid means of transpor- N We cover covered property while it is tation. temporarily away from the covered lo- We will also pay the extra wages you pay cation to be cleaned, repaired or serviced. your employees for preparing inventories While at the temporary location, we and other loss data for completing your cover it against loss from a cause of loss proof of loss. We do not cover any other we cover applying to the property at the expenses incurred in preparing or sub - covered location. While in transit to and mitting claims. from the temporary location, the Special Causes of Loss apply to such property. The Special Exclusions that apply to the Extra Expense Coverage Form shall ap- We will not pay more than the lesser of ply to this coverage. z $10,000 or 10% of the combined limits on business real property and business We will not pay more than the lesser of personal property at the covered location $10,000 or 10% of the combined limits where the property is usually situated. on business real property and business LL personal property at the location where W e. Outdoor Property: Trees, Shrubs, Plants the loss occurs. and Lawns a g. Accounts Receivable a We cover your trees, shrubs, plants and w lawns that are outside a covered building We cover your records of balances owed o when the loss is caused by or results from you by your customers while the records N any of the following causes of loss: fire; are at a covered location. We cover such U lightning; aircraft; explosion; riot or civil records against loss from a cause of loss Lu N M O O iaz000 1z-asR Page 6 of 13 we cover applying to your business per- sonal property at the location. We will pay the following when they re- sult from loss or damage to these records: (1) Sums owed you by customers which you cannot collect; (2) Interest charges you must pay on loans obtained to offset impaired collections; (3) That part of your collection costs that exceeds your normal costs; (4) Other costs you reasonably incur to restore your records. We will not pay more than the lesser of $10,000 or 10% of the limit on business personal property at the location where the loss occurs. B. Exclusions See applicable Causes of Loss Form as shown in the Declarations. C. Limits of Insurance The most we will pay for loss or damage in any one occurrence is the applicable Limit of Insur- ance shown in the Declarations. The limits applicable to the Coverage Extensions and the Pollutant Removal and Fire Department Service Charge Additional Coverage are in addi- tion to the Limits of Insurance. Payments under the following Additional Cover- ages will not increase the applicable Limit of In- surance: 1. Preservation of Property 2. Debris Removal 3. F.O.B. Shipments 4. Money, Checks and Stamps 5. Money Orders and Counterfeit Paper Cur- rency When the Limit of Insurance is exhausted we will pay an additional amount up to the lesser of: 1. 5% of the applicable limit of liability; or 2. $50,000 under the Debris Removal Additional Coverage. D. Deductible We will not pay for loss or damage in any one occurrence until the amount of loss or damage exceeds the Deductible shown in the Declarations. We will then pay the amount of loss or damage in excess of the Deductible, up to the applicable Limit of Insurance. If more than one deductible is applicable under this Property Guard Coverage Form, we will only apply the highest amount that is applicable. E. Loss Conditions The following conditions apply in addition to the Common Policy Conditions and the Commercial Property Conditions. 1. Abandonment There can be no abandonment of any prop- erty to us. 2. Appraisal If we and you disagree on the value of the property or the amount of loss, either may make written demand for an appraisal of the loss. In this event, each party will select a competent and impartial appraiser. The two appraisers will select an umpire. If they can- not agree, either may request that selection be made by a judge of a court having juris- diction. The appraisers will state separately the value of the property and amount of loss. If they fail to agree, they will submit their differences to the umpire. A decision agreed to by any two will be binding. Each party will: a. Pay its chosen appraiser; and b. Bear the other expenses of the appraisal and umpire equally. If there is an appraisal, we will still retain our right to deny the claim. 3. Duties In The Event Of Loss Or Damage 142000 12-88R Page 7 of 13 You must see that the following are done in a. In the event of loss or damage covered the event of loss or damage to Covered by this Coverage Form, at our option Property: we will either: a. Notify the police if a law may have been (1) Pay the value of lost or damaged broken. property; b. Give us prompt notice of the loss or (2) Pay the cost of repairing or replacing damage. Include a description of the the lost or damaged property; property involved. (3) Take all or any part of the property c. As soon as possible, give us a description at an agreed or appraised value; or of how, when and where the loss or (4) Repair, rebuild or replace the prop - damage occurred. erty with other property of like kind d. Take all reasonable steps to protect the and quality. Covered Property from further damage b. We will give notice of our intentions by a Covered Cause of Loss. If feasible, within 30 days after we receive the sworn set the damaged property aside and in the statement of loss. best possible order for examination. Also keep a record of your expenses for c. We will not pay you more than your fi- emergency and temporary repairs, for nancial interest in the Covered Property. consideration in the settlement of the d. We may adjust losses with the owners of claim. This will not increase the Limit lost or damaged property if other than of Insurance. you. If we pay the owners, such pay - e. At our request, give us complete inven- ments will satisfy your claims against us tories of the damaged and undamaged for the owners' property. We will not o pay the owners more than their financial g property. Include quantities, costs, val- interest in the Covered Property. M ues and amount of loss claimed. N e. We may elect to defend you against suits f. Permit us to inspect the property and re- arising from claims of owners of prop - cords proving the loss or damage. Also erty. We will do this at our expense. permit us to take samples of damaged property for inspection, testing and anal- f. We will pay for covered loss or damage ysis. within 30 days after we receive the sworn statement of loss, if: g. If requested, permit us to question you under oath at such times as may be rea- (1) You have complied with all of the sonably required about any matter relat- terms of this Coverage Form; and ing to this insurance or your claim, (2) (a) We have reached agreement with Z including your books and records. In you on the amount of loss; or such event, your answers must be signed. (b) An appraisal award has been h. Send us a signed, sworn statement of loss made. ocontaining the information we request to LL investigate the claim. You must do this 5. Recovered Property Cqwithin 60 days after our request. We will supply you with the necessary forms. If either you or we recover any property after LLloss settlement, that party must give the other W i. Cooperate with us in the investigation prompt notice. At your option, the property 0 or settlement of the claim. will be returned to you. You must then re - _N turn to us the amount we paid to you for the U 4. Loss Payment property. We will pay recovery expenses and W 142000 12-88R N M O O Page 8 of 13 the expenses to repair the recovered property, subject to the Limit of Insurance. 6. Vacancy If the building where loss or damage occurs is vacant or unoccupied we will pay for loss or damage caused by or resulting from any Covered Cause of Loss. If this policy contains any provisions entitled or referred to as STANDARD FIRE POL- ICY PROVISIONS, any limitations con- tained therein that apply to vacant or unoccupied buildings are deleted. 7. Valuation If a loss occurs, we will determine the value of the damaged property at actual cash value as of the time of loss or damage, except as provided below. a. Stock will be valued as follows: (1) Stock you have sold but not deliv- ered at the selling price less dis- counts and expenses you otherwise would have had. (2) Stock that is finished goods manu- factured by you at the price for which it could have been sold if there had been no loss, less all dis- counts and unincurred expenses. (3) Stock shipped to you at your actual invoice cost plus any charges you must pay and your commission, if you are the selling agent. (4) Stock that you have shipped at your selling invoice plus any guaranteed, prepaid or advanced freight. (5) Stock that you have shipped not under invoice at its market value at destination on the date of loss less any unincurred expenses. b. Glass will be valued at the cost to replace damaged property with safety glazing material if required by law. Books of Account, abstracts, drawings, and systems and other records, including those which exist in electronic or magnetic media and film, negatives, discs, slides, photographs and video tapes, that are not covered under Coverage Exten- sion, subsection c. Valuable Papers and Records will be valued at the cost of: (1) Blank or unexposed materials for reproducing the records; and (2) When there is a duplicate, labor to transcribe or copy the records. d. When the full cost to repair or replace the damaged property (whether it is business personal property or business real prop- erty or both) is $5000 or less, we will pay the full cost to repair or replace the property without deduction for depreci- ation. This is subject to the following: (1) The damaged property must be re- paired or replaced within a reason- able time after loss. (2) We will not pay more than the ac- tual cash value of the damaged property until repair or replacement is completed. (3) This replacement cost provision does not apply to any of the follow- ing property: floor coverings, awnings, domestic appliances and outdoor equipment, whether they are attached to the building or not. (4) If coinsurance applies to the dam- aged building, this replacement cost provision does not apply to the loss to the building unless the limit of li- ability applying to that building equals or exceeds the amount produced by multiplying the actual cash value of the building at the time of loss by the coinsurance percent- age. e. Tenant's Improvements and Betterments will be valued at: (1) Actual cash value of the lost or damaged property if you make re- pairs promptly. (2) A proportion of your original cost if you do not make repairs 142000 12-88R Page 9 of 13 promptly. We will determine the Declarations is greater than the Limit of proportionate value as follows: Insurance for the property. (a) Multiply the original cost by Instead, we will determine the most we the number of days from the will pay using the following steps: loss or damage to the expira- tion of the lease; and (1) Multiply the value of Covered Property at the time of loss by the (b) Divide the amount determined Coinsurance percentage; in (a) above by the number of days from the installation of (2) Divide the Limit of Insurance of the improvements to the expiration property by the figure determined in of the lease. step (1); If your lease contains a renewal (3) Multiply the total amount of the option, the expiration of the covered loss, before the application renewal option period will re- of any deductible, by the figure de - place the expiration of the lease termined in step (2); and in this procedure. (4) Subtract the deductible from the (3) Nothing if others pay for repairs or figure determined in step (3). replacement. The amount determined in step (4) is the 8. Labeled Goods most we will pay. For the remainder, you will either have to rely on other in - If covered goods bearing a brand on the label surance or absorb the loss yourself. LL are damaged and we exercise our option to take all or part of the property at the agreed Example No. 1 (Underinsurance); g or appraised value, you may: When: The value of the property is o $250,000 a. stamp Salvage on the goods on their The Coinsurance percentage fir it is N containers; or 80% The Limit of Insurance for it is $100,000 b. remove the brands or labels. The Deductible is $ 250 The amount of loss is $ 40,000 But you must not damage the goods, and must relabel the goods or containers to com- Step (1): $250,000 x 80% = $200,000 ply with applicable law. Any cost of stamp- (the minimum amount of insurance to ing, removing or relabeling the goods will be meet your Coinsurance requirements) charged to salvage expense. Step (2): $100,000 divided by $200,000 F. Additional Conditions = .50 cc z The following conditions apply in addition to the Step (3): $ 40,000 x .50 = $20,000 Common Policy Conditions and the Commercial Property Conditions. Step (4): $ 20,000 - $250 = $19,750 g 1. Coinsurance We will pay no more than $19,750. The remaining $20,250 is not covered. N If a Coinsurance percentage is shown in the a Declarations, the following condition applies. Example No. 2 (Adequate Insurance): 2 When: The value of the property is W a. We will not pay the full amount of any $250,000 o loss if the value of Covered Property at The Coinsurance percentage for it is 80% N the time of loss times the Coinsurance The Limit of Insurance for it is $ 200,000 percentage shown for it in the The Deductible is $ 250 LU N M O 0 iaa000 12-88xCO Page 10 of 13 The amount of loss is $ 40,000 Step (1): $250,000 x 80% = $200,000 (the minimum amount of insurance to meet your Coinsurance requirements) Step (2): $200,000 divided by $200,000 = 1.00 Step (3): $ 40,000 x 1.00 = $40,000 Step (4): $ 40,000 - $250 = $39,750 We will cover the $39,750 loss in excess of the Deductible. No penalty applies. b. If one Limit of Insurance applies to two or more separate items, this condition will apply to the total of all property to which the limit applies. Example No. 3 When: The value of the property is: Bldg. at Location No. 1 $ 75,000 Bldg. at Location No. 2 100,000 Personal Property at Location No. 2 75,000 $250,000 The Coinsurance percentage for it is 90% The Limit of Insurance for Buildings and Personal Property at Locations Nos. I and 2 is $180,000 The Deductible is 1,000 The amount of loss is Bldg. at Location No. 2 30,000 Personal Property at Location No. 2 20,000 $ 50,000 Step (1): $250,000 x 90% = $225,000 (the minimum amount of insurance to meet your Coinsurance requirements and to avoid the penalty shown below) Step (2): $180,000 divided by $225,000 = .80 Step (3): $ 50,000 x .80 = $40,000 Step (4): $ 40,000 - $1,000 = $39,000. We will pay no more than $39,000. The remaining $11,000 is not covered. c. If the loss involves property at a location not specifically identified, the value used in a. (1) will be the total value of all property at all locations not specifically identified. The Limit of Insurance in a. (2) will be the aggregate Limit of Insur- ance shown in the Declarations. d. This Coinsurance Additional Condition does not apply to ITEM E. 2. Mortgage Holders a. The term mortgage holder includes trus- tee. b. We will pay for covered loss of or dam- age to buildings or structures to each mortgage holder shown in the Declara- tions in their order of precedence, as in- terests may appear. c. The mortgage holder has the right to re- ceive loss payment even if the mortgage holder has started foreclosure or similar action on the building or structure. d. If we deny your claim because of your acts or because you have failed to comply with the terms of this Coverage Part, the mortgage holder will still have the right to receive loss payment if the mortgage holder: (1) Pays any premium due under this Coverage Part at our request if you have failed to do so; (2) Submits a signed, sworn statement of loss within 60 days after receiving notice from us of your failure to do so; and (3) Has notified us of any change in ownership, occupancy or substantial change in risk known to the mort- gage holder. All of the terms of this Coverage Part will then apply directly to the mortgage holder. e. If we pay the mortgage holder for any loss or damage and deny payment to you 14200012 -SSR Page I1 of 13 because of your acts or because you have not extended, the Additional Condition, failed to comply with the terms of this Coinsurance, is reinstated and this Op - Coverage Part: tional Coverage expires. (1) The mortgage holder's rights under c. The terms of this Optional Coverage ap- the mortgage will be transferred to ply only to loss or damage that occurs: us to the extent of the amount we pay; and (1) On or after the effective date of this Optional Coverage; and (2) The mortgage holder's right to re- cover the full amount of the mort- (2) Before the Agreed Value expiration gage holder's claim will not be date shown in the Declarations or impaired. the policy expiration date, whichever occurs first. At our option, we may pay to the mort- gage holder the whole principal on the 2• Val -U -Gard (if applicable, see endorsement) mortgage plus any accrued interest. In 3. Replacement Cost this event, your mortgage and note will be transferred to us and you will pay a. Replacement Cost (without. deduction your remaining mortgage debt to us. for depreciation) replaces Actual Cash f. If we cancel this policy, we will give Value in the Loss Condition, Valuation, written notice to the mortgage holder at of this Coverage Form. least: b. This Optional Coverage does not apply (1) 10 days before the effective date of to: cancellation if we cancel for your (1) Property of others; LL nonpayment of premium; or `° (2) Contents of a residence; (2) 30 days before the effective date of o cancellation if we cancel for any (3) Manuscripts; g other reason. (4) Works of art, antiques or rare arti- Ng. If we elect not to renew this policy, we cles, including etchings, pictures, x will give written notice to the mortgage statuary, marbles, bronzes, holder at least 10 days before the expira- porcelains and bric-a-brac; or tion date of this policy. (5) Stock, unless the Declarations spe- G. Optional Coverages cifically state that Replacement Cost applies to Stock. If shown in the Declarations, the following Op- tional Coverages apply separately to each item. c. You may make a claim for loss or dam- age covered by this insurance on an 1. Agreed Value actual cash value basis instead of on a replacement cost basis. In the event you z a. The Additional Condition, Coinsurance, elect to have loss or damage settled on does not apply to Covered Property to an actual cash value basis, you may still which this Optional Coverage applies. make a claim for the additional coverage We will pay no more for loss of or dam- this Optional Coverage provides if you oage to that property than the proportion notify us of your intent to do so within that the Limit of Insurance under this 180 days after the loss or damage. W Coverage Part for the property bears to N the Agreed Value shown for it in the d. We will not pay on a replacement cost LL Declarations. basis for any loss or damage: W b. If the expiration date for this Optional (1) Until the lost or damaged property Coverage shown in the Declarations is is actually repaired or replaced; and N U 00 N M O O 142000 12-88R Page 12 of 13 (2) Unless the repairs or replacement are made as soon as reasonably possible after the loss or damage. e. We will not pay more for loss or damage on a replacement cost basis than the least of. (1) The Limit of Insurance applicable to the lost or damaged property; (2) The cost to replace, on the same premises, the lost or damaged prop- erty with other property: (a) Of comparable material and quality; and (b) Used for the same purpose; or (3) The amount you actually spend that is necessary to repair or replace the lost or damaged property. H. Definitions 1. money means currency, coins and bank notes. 2. normal business operations means the state that your operations would be in if there had been no loss. 3. personal effects means apparel, tools, and other personal possessions. 4. policy territory means: a. the states of the United States of Amer- ica; b. the District of Columbia; c. Canada. 5. pollutants means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes material to be recycled, reconditioned or reclaimed. 6. premises means that part of the location you occupy. 7. property of others means property which does not belong to you or to your officers, part- ners or employees. 8. stock means merchandise held in storage or for sale; raw materials; and in -process or fin- ished goods. It includes supplies used in packing or shipping of any of these. 9. value means the valuation basis upon which payment for loss or damage is made. 10. vehicle means any automobile, motorcycle, motor truck, tractor, trailer or semi -trailer, or any similar means of transporting persons or property. Two or more vehicles connected together will be considered a single vehicle. 11. your business means the trade, profession or occupation in which you are engaged and which is shown in the Declarations. 142000 12-88R Page 13 of 13 LL Business Income Coverage Form (and Extra Expense) - CP 00 30 10 91 Commercial Property Coverage Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and what is and is not covered. Throughout this policy the words you and your refer to the Named Insured shown in the Declarations. The words we, us and our refer to the Company providing this insurance. Other words and phrases that appear in bold face or quotation marks have special meaning. Refer to SEC- TION G - DEFINITIONS. A. Coverage Coverage is provided as described below for one or more of the following options for which a Limit of Insurance is shown in the Declarations: (i) Business Income including Rental Value. (ii) Business Income other than Rental Value. (iii) Rental Value. 0 g If option (i) above is selected, the term Business Income will include Rental Value. If option (iii) M above is selected, the term Business Income will Cq 11 mean Rental Value only. If Limits of Insurance are shown under more than one of the above options, the provisions of this Coverage Part apply separately to each. We will pay for the actual loss of Business Income you sustain due to the necessary suspension of your operations during the period of restoration. The suspension must be caused by direct physical loss of or damage to property at the premises de - z scribed in the Declarations, including personal property in the open (or in a vehicle) within 100 0 LL w N h a U LL w m 0 1 T feet, caused by or resulting from any Covered Cause of Loss. 1. Business Income Business Income means the: a. Net Income (Net Profit or Loss before income taxes) that would have been earned or incurred; and b. Continuing normal operating expenses incurred, including payroll. 2. Covered Causes of Loss See applicable Causes of Loss Form as shown in the Declarations. 3. Additional Coverages a. Extra Expense Extra Expense means necessary expenses you incur during the period of restoration that you would not have incurred if there had been no direct physical loss or dam- age to property caused by or resulting from a Covered Cause of Loss. (1) We will pay any Extra Expense to avoid or minimize the suspension of business and to continue operations: This Form must be attached to Change Endorsement when issued after the policy is written. One of the Fireman's Fund Insurance Companies as named in the policy �IXA"W'c' Se etary President (a) At the described premises; or (b) At replacement premises or at temporary locations, including: (i) Relocation expenses; and (ii) Costs to equip and operate the replacement or tempo- rary locations. CP0030 10-91 Ui Copyright, Insurance Services Office, Inc., 1983, 1990 Page 1 Of 8 N I'7 O O (2) We will pay any Extra Expense to minimize the suspension of business if you cannot continue operations. (3) We will pay any Extra Expense to: (a) Repair or replace any property; or (b) Research, replace or restore the lost information on damaged valuable papers and records; to the extent it reduces the amount of loss that otherwise would have been payable under this Coverage Form. b. Civil Authority We will pay for the actual loss of Busi- ness Income you sustain and necessary Extra Expense caused by action of civil authority that prohibits access to the de- scribed premises due to direct physical loss of or damage to property, other than at the described premises, caused by or resulting from any Covered Cause of Loss. This coverage will apply for a pe- riod of up to two consecutive weeks from the date of that action. c. Alterations and New Buildings We will pay for the actual loss of Busi- ness Income you sustain due to direct physical loss or damage at the described premises caused by or resulting from any Covered Cause of Loss to: (1) New buildings or structures, whether complete or under construction; (2) Alterations or additions to existing buildings or structures; and (3) Machinery, equipment, supplies or building materials located on or within 100 feet of the described premises and: (a) Used in the construction, alter- ations or additions; or (b) Incidental to the occupancy of new buildings. CP0030 10-91 Copyright, Insurance services Office, Inc., 1983, 1990 If such direct physical loss or damage delays the start of operations, the period of restoration will begin on the date op- erations would have begun if the direct physical loss or damage had not oc- curred. d. Extended Business Income We will pay for the actual loss of Busi- ness Income you incur during the period that: (1) Begins on the date property (except finished stock) is actually repaired, rebuilt or replaced and operations are resumed; and (2) Ends on the earlier of: (a) The date you could restore your operations, with reasonable speed, to the condition that would have existed if no direct physical loss or damage oc- curred; or (b) 30 consecutive days after the date determined in (1) above. Loss of Business Income must be caused by direct physical loss or damage at the described premises caused by or resulting from any Covered Cause of Loss. 4. Coverage Extension If a Coinsurance percentage of 50% or more is shown in the Declarations, you may extend the insurance provided by this Coverage Part as follows: Newly Acquired Locations a. You may extend your Business Income Coverage to apply to property at any lo- cation you acquire other than fairs or exhibitions. b. The most we will pay for loss under this Extension is 10% of the Limit of Insur- ance for Business Income shown in the Declarations, but not more than $100,000 at each location. Page 2 of 8 c. Insurance under this Extension for each newly acquired location will end when any of the following first occurs: (1) This policy expires; (2) 30 days expire after you acquire or begin to construct the property; or (3) You report values to us. We will charge you additional premium for values reported from the date you acquire the property. This Extension is additional insurance. The Additional Condition, Coinsurance, does not apply to this Extension. B. Exclusions See applicable Causes of Loss Form as shown in the Declarations. C. Limits of Insurance The most we will pay for loss in any one occur- rence is the applicable Limit of Insurance shown 0 in the Declarations. 0 0 The limit auolicable to the Coveraue Extension is CO in addition to the Limit of Insurance. N x Payments under the following Additional Cover- ages will not increase the applicable Limit of In- surance: 1. Alterations and New Buildings; party will select a competent and impartial appraiser. The two appraisers will select an umpire. If they cannot agree, either may request that se- lection be made by a judge of a court having jurisdiction. The appraisers will state sepa- rately the amount of Net Income and operat- ing expense or amount of loss. If they fail to agree, they will submit their differences to the umpire. A decision agreed to by any two will be binding. Each party will: a. Pay its chosen appraiser; and b. Bear the other expenses of the appraisal and umpire equally. If there is an appraisal, we will still retain our right to deny the claim. 2. Duties in the Event of Loss: a. You must see that the following are done in the event of loss: (1) Notify the police if a law may have been broken. (2) Give us prompt notice of the direct physical loss or damage. Include a description of the property involved. (3) As soon as possible, give us a de- scription of how, when, and where the direct physical loss or damage occurred. 2. Civil Authority; (4) Take all reasonable steps to protect the Covered Property from further 3. Extra Expense; or damage by a Covered Cause of Loss. If feasible, set the damaged property 4. Extended Business Income. aside and in the best possible order Z for examination. Also keep a record D. Loss Conditions of your expenses for emergency and The following conditions apply in addition to the temporary repairs, for consideration Common Policy Conditions and the Commercial in the settlement of the claim. This LL Property Conditions. will not increase the Limit of Insur- (D W ance. CA 1. Appraisal U (5) As often as may be reasonably re - LL If we and you disagree on the amount of Net quired, pen -nit us to inspect the w Income and operating expense or the amount property proving the loss or damage of loss, either may make written demand for and examine your books and U an appraisal of the loss. In this event, each records. CP0030 10.91 W Copyright, Insurance Services Office, Inc., 1983, 1990 Page 3 of 8 N M O O Also permit us to take samples of damaged and undamaged property for inspection, testing and analysis, and permit us to make copies from your books and records. (6) Send us a signed, sworn proof of loss containing the information we re- quest to investigate the claim. You must do this within 60 days after our request. We will supply you with the necessary forms. (7) Cooperate with us in the investi- gation or settlement of the claim. (8) If you intend to continue your busi- ness, you must resume all or part of your operations as quickly as possi- ble. b. We may examine any insured under oath, while not in the presence of any other insured and at such times as may be rea- sonably required, about any matter re- lating to this insurance or the claim, including an insured's books and records. In the event of an examination, an insured's answers must be signed. 3. Limitation - Electronic Media and Records We will not pay for any loss of Business In- come caused by direct physical loss of or damage to Electronic Media and Records af- ter the longer of. a. 60 consecutive days from the date of di- rect physical loss or damage; or b. The period, beginning with the date of direct physical loss or damage, necessary to repair, rebuild or replace, with rea- sonable speed and similar quality, other property at the described premises due to loss or damage caused by the same oc- currence. Electronic Media and Records are: (1) Electronic data processing, recording or storage media such as films, tapes, discs, drums or cells; (2) Data stored on such media; or CP0030 10.91 Copyright, Insurance Services Office, Inc., 1983, 1990 (3) Programming records used for elec- tronic data processing or electron- ically controlled equipment. This limitation does not apply to Extra Expense. Example No. 1: A Covered Cause of Loss damages a computer on June 1. It takes until Sep- tember 1 to replace the computer, and until October 1 to restore the data that was lost when the damage occurred. We will only pay for the Business Income loss sustained during the period June 1 - September 1. Loss during the period September 2 - October 1 is not covered. Example No. 2: A Covered Cause of Loss results in the loss of data processing programming re- cords on August 1. The records are re- placed on October 15. We will only pay for the Business Income loss sustained during the period August 1 - September 29 (60 consecutive days). Loss during the period September 30 - October 15 is not covered. 4. Loss Determination a. The amount of Business Income loss will be determined based on: (1) The Net Income of the business be- fore the direct physical loss or dam- age occurred; (2) The likely Net Income of the busi- ness if no loss or damage occurred; (3) The operating expenses, including payroll expenses, necessary to re- sume operations with the same quality of service that existed just before the direct physical loss or damage; and (4) Other relevant sources of informa- tion, including: (a) Your financial records and ac- counting procedures; Page 4 of 8 (b) Bills, invoices and other vouch- ers; and (c) Deeds, liens or contracts. b. The amount of Extra Expense will be determined based on: (1) All expenses that exceed the normal operating expenses that would have been incurred by operations during the period of restoration if no direct physical loss or damage had oc- curred. We will deduct from the to- tal of such expenses: (a) The salvage value that remains of any property bought for temporary use during the period of restoration, once operations are resumed; and (b) Any Extra Expense that is paid for by other insurance, except for insurance that is written LL subject to the same plan, terms, conditions and provisions as this insurance; and 0 0 0 (2) All necessary expenses that reduce M the Business Income loss that oth- erwise would have been incurred. x C. Resumption of Operations We will reduce the amount of your: (1) Business Income loss, other than extra Expense, to the extent you can resume your operations, in whole or in part, by using damaged or un- damaged property (including mer - co ? chandise or stock) at the described premises or elsewhere. (2) Extra Expense loss to the extent you LL can return operations to normal and W discontinue such Extra Expense. cV c� d. If you do not resume operations, or do W not resume operations as quickly as pos- sible, we will pay based on the length of time it would have taken to resume op - N erations as quickly as possible. U CP0030 10-91 W Copyright, Insurance Services Office, Inc., 1983, 1990 N M O O 5. Loss Payment We will pay for covered loss within 30 days after we receive the sworn proof of loss, if: a. You have complied with all of the terms of this Coverage Part; and b. (1) We have reached agreement with you on the amount of loss; or (2) An appraisal award has been made. E. Additional Condition Coinsurance If a Coinsurance percentage is shown in the Dec- larations, the following condition applies in addi- tion to the Common Policy Conditions and the Commercial Property Conditions. We will not pay the full amount of any loss if the Limit of Insurance for Business Income is less than: a. The Coinsurance percentage shown for Business Income in the Declarations; times b. The sum of. (1) The Net Income (Net Profit or Loss before income taxes), and (2) All operating expenses, including payroll expenses, that would have been earned (had no loss occurred) by your operations at the de- scribed premises for the 12 months fol- lowing the inception, or last previous anniversary date, of this policy (which- ever is later). Instead, we will determine the most we will pay using the following steps: 1. Multiply the Net Income and operating ex- pense for the 12 months following the incep- tion, or last previous anniversary date, of this policy by the Coinsurance percentage; 2. Divide the Limit of Insurance for the de- scribed premises by the figure determined in step 1; and Page 5 of 8 i 3. Multiply the total amount of loss by the fig- ure determined in step 2. We will pay the amount determined in step 3 or the limit of insurance, whichever is less. For the remainder, you will either have to rely on other insurance or absorb the loss yourself. Example No. I (Underinsurance): When: The Net Income and operating expenses for the 12 months following the inception, or last previous anniversary date, of this policy at the described premise would have been $ 400,000 The Coinsurance percentage is 50% The Limit of Insurance is $150,000 The amount of loss is $ 80,000 Step 1: $400,000 x 50% = $200,000 (the minimum amount of insurance to meet your Coinsurance requirements) Step 2: $150,000 _ $200,000 = .75 Step 3: $ 80,000 x .75 = $60,000 We will pay no more than $60,000. The remaining $20,000 is not covered. Example No. 2 (Adequate Insurance): When: The Net Income and operating expenses for the 12 months following the inception, or last previous anniversary date, of this policy at the described premises would have been $400,000 The Coinsurance percentage is 50% The Limit of Insurance is $ 200,000 The amount of loss is $ 80,000 Step 1: $400,000 x 50% = $200,000 (the minimum amount of insurance to meet your Coinsurance requirements) Step 2: $200,000 - $200,000 = 1.00 Step 3: $ 80,000 x 1.00 = $80,000 We will cover the $80,000 loss. No penalty applies. CP0030 10-91 Copyright, Insurance Services Office, Inc., 1983, 1990 This condition does not apply to the extra Ex- pense Additional Coverage. F. Optional Coverages If shown in the Declarations, the following Op- tional Coverages apply separately to each item. 1. Maximum Period of Indemnity a. The Additional Condition, Coinsurance, does not apply to this Coverage Form at the described premises to which this Op- tional Coverage applies. b. The most we will pay for loss of Business Income is the lesser of: (1) The amount of loss sustained during the 120 days immediately following the direct physical loss or damage; or (2) The Limit of Insurance shown in the Declarations. 2. Monthly Limit of Indemnity a. The Additional Condition, Coinsurance, does not apply to this Coverage Form at the described premises to which this Op- tional Coverage applies. b. The most we will pay for loss of Business Income in each period of 30 consecutive days after the direct physical loss or damage is: (1) The Limit of Insurance, multiplied by (2) The fraction shown in the Declara- tions for this Optional Coverage. Example: When: The Limit of Insurance is $120,000 The fraction shown in the Declara- tions for this Optional Coverage is 1/4 The most we will pay for loss in each period of 30 consecutive days is: $120,000 x 1/4 = $30,000 Page 6 of 8 whichever occurs first. c. We will reinstate the Additional Condi- tion, Coinsurance, automatically if you do not submit a new Work Sheet and Agreed Value: (1) Within 12 months of the effective date of this Optional Coverage; or (2) When you request a change in your Business Income Limit of Insurance. d. If the Business Income Limit of Insur- ance is less than the Agreed Value, we will not pay more of any loss than the amount of loss multiplied by: (1) The Business Income Limit of In- surance; divided by (2) The Agreed Value. Example: When: The Limit of Insurance is $100,000 The Agreed Value is $ 200,000 The amount of loss is $ 80,000 Step (a): $100,00 - $200,000 = .50 Step (b):.50 x $80,000 = $40,000 We will pay $40,000. The remaining $40,000 is not covered. 4. Extended Period of Indemnity Under paragraph A.3.d., Extended Business Income, the number 30 in subparagraph (2)(b) is replaced by the number shown in the Declarations for this Optional Coverage. G. Definitions 1. Finished Stock means stock you have manu- factured. Finished stock also includes whiskey and al- coholic products being aged, unless there is a Coinsurance percentage shown for Business Income in the Declarations. Finished stock does not include stock you have manufactured that is held for sale on the Page 7 of 8 If, in this example, the actual amount of loss is: Days 1-30 $ 40,000 Days 31-60 20,000 Days 61-90 30,000 $ 90,000 We will pay: Days 1-30 $ 30,000 Days 31-60 20,000 Days 61-90 30,000 $ 80,000 The remaining $10,000 is not covered. 3. Agreed Value a. To activate this Optional Coverage: (1) A Business Income Report/Work Sheet must be made a part of this policy and must show financial data for your operations: LL (a) During the 12 months prior to 0 0 the date of the Work Sheet; and 0 o (b) Estimated for the 12 months immediately following the in - N ception of this Optional Cover- age. (2) An Agreed Value must be shown in the Declarations or on the Work Sheet. The Agreed Value should be at least equal to: (a) The Coinsurance percentage shown in the Declarations; multiplied by Z (b) The amount of Net Income and Operating Expenses for the fol- lowing 12 months you report 0 on the Work Sheet. LL W b. The Additional Condition, Coinsurance, N o_ is suspended until: v W (1) 12 months after the effective date of 0 this Optional Coverage; or (2) The expiration date of this policy; U CP0030 10-91 Lu N M O O Copyright, Insurance Services Office, Inc., 1983, 1990 whichever occurs first. c. We will reinstate the Additional Condi- tion, Coinsurance, automatically if you do not submit a new Work Sheet and Agreed Value: (1) Within 12 months of the effective date of this Optional Coverage; or (2) When you request a change in your Business Income Limit of Insurance. d. If the Business Income Limit of Insur- ance is less than the Agreed Value, we will not pay more of any loss than the amount of loss multiplied by: (1) The Business Income Limit of In- surance; divided by (2) The Agreed Value. Example: When: The Limit of Insurance is $100,000 The Agreed Value is $ 200,000 The amount of loss is $ 80,000 Step (a): $100,00 - $200,000 = .50 Step (b):.50 x $80,000 = $40,000 We will pay $40,000. The remaining $40,000 is not covered. 4. Extended Period of Indemnity Under paragraph A.3.d., Extended Business Income, the number 30 in subparagraph (2)(b) is replaced by the number shown in the Declarations for this Optional Coverage. G. Definitions 1. Finished Stock means stock you have manu- factured. Finished stock also includes whiskey and al- coholic products being aged, unless there is a Coinsurance percentage shown for Business Income in the Declarations. Finished stock does not include stock you have manufactured that is held for sale on the Page 7 of 8 premises of any retail outlet insured under this Coverage Part. 2. Operations means: a. Your business activities occurring at the described premises; and b. The tenantability of the described prem- ises, if coverage for Business Income in- cluding Rental Value or Rental Value applies. 3. Period of Restoration means the period of time that: a. Begins with the date of direct physical loss or damage caused by or resulting from any Covered Cause of Loss at the described premises; and b. Ends on the date when the property at the described premises should be re- paired, rebuilt or replaced with reason- able speed and similar quality. Period of restoration does not include any increased period required due to the enforcement of any ordinance or law that: CP0030 10-91 Copyright, Insurance Services Office, Inc., 1983, 1990 (1) Regulates the construction, use or repair, or requires the tearing down of any property; or (2) Requires any insured or others to test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of pollutants. The expiration date of this policy will not cut short the period of restoration. 4. Pollutants means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materi- als to be recycled, reconditioned or reclaimed. 5. Rental Value means the: a. Total anticipated rental income from tenant occupancy of the premises de- scribed in the Declarations as furnished and equipped by you, and b. Amount of all charges which are the legal obligation of the tenant(s) and which would otherwise be your obligations, and c. Fair rental value of any portion of the described premises which is occupied by you. Page 8 of 8 0 LL �o w N a U LL w N U Commercial Property Conditions - CP 00 90 07 88 Policy Property Coverage This Coverage Part is subject to the following conditions, the Common Policy Conditions and applicable Loss Con- ditions and Additional Conditions in Property Coverage Forms. A. Concealment, Misrepresentation or Fraud This Coverage Part is void in any case of fraud by you. It is also void if you or any other insured, at any time, intentionally conceal or misrepresent a material fact concerning: 1. This Coverage Part; 2. The Covered Property; 3. Your interest in the Covered Property; or 4. A claim under this Coverage Part. B. Control of Property Any act or neglect of any person other than you beyond your direction or control will not affect this insurance. The breach of any condition of this Coverage Part at any one or more locations will not affect cover- age at any location where, at the time of loss or damage, the breach of condition does not exist. C. Insurance Under Two or More Coverages If two or more of this policy's coverages apply to the same loss or damage, we will not pay more than the actual amount of the loss or damage. D. Legal Action Against Us No one may bring a legal action against us under this Coverage Part unless: 1. There has been full compliance with all of the terms of this Coverage Part; and 2. The action is brought within 2 years after the date on which the direct physical loss or damage occurred. E. Liberalization If we adopt any revision that would broaden the coverage under this Coverage Part without addi- tional premium within 45 days prior to or during the policy period, the broadened coverage will im- mediately apply to this Coverage Part. F. No Benefit to Bailee No person or organization, other than you, having custody of Covered Property will benefit from this insurance. G. Other Insurance You may have other insurance subject to the same plan, terms, conditions and provisions as the insurance under this Coverage Part. If you do, we will pay our share of the covered loss or damage. Our share is the proportion that the applicable Limit of Insurance under this Coverage Part bears to the Limits of In- surance of all insurance covering on the same basis. If there is other insurance covering the same loss or damage, other than that described in 1, above, we will pay only for the amount of covered loss or damage in excess of the amount due from that other insurance, whether you can collect on it or not. But we will not pay more than the applicable Limit of Insurance. This Form must be attached to Change Endorsement when issued after the policy is written. One of the Fireman's Fund Insurance Companies as named in the policy President CP0090 7-88 LU Copyright, ISO Commercial Risk Services, Inc., 1983, 1987 Page I of 2 N co O O H. Policy Period, Coverage Territory Under this Coverage Part: 1. We cover loss or damage commencing: a. During the policy period shown in the Declarations; and b. Within the coverage territory. 2. The coverage territory is: a. The United States of America (including its territories and possessions); b. Puerto Rico; and c. Canada. I. Transfer of Rights of Recovery Against Others to Us If any person or organization to or for whom we make payment under this Coverage Part has rights to recover damages from another, those rights are transferred to us to the extent of our payment. That person or organization must do everything necessary to secure our rights and must do nothing after loss to impair them. But you may waive your rights against another party in writing: 1. Prior to a loss to your Covered Property or Covered Income. 2. After a loss to your Covered Property or Covered Income only if, at time of loss, that party is one of the following: a. Someone insured by this insurance; b. A business firm: (1) Owned or controlled by you; or (2) That owns or controls you; or c. Your tenant. This will not restrict your insurance. CP0090 7-88 Copyright, ISO Commercial Risk Services, Inc., 1983, 1987 Page 2 of 2 LL 0 0 0 0 0_ N a N z z 0 LL w N h a - v LL W T 0 N_ U Cancellation Changes - CP 02 99 11 85 Policy Amendment Commercial Property Coverage This endorsement modifies insurance provided under the following: Commercial Property Coverage Part The following is added to the CANCELLATION Common Policy Condition: If any one of the following conditions exists at any building that is Covered Property in this policy, we may cancel this Coverage Part by mailing or delivering to the first Named Insured written notice of cancella- tion at least 5 days before the effective date of cancel- lation. A. The building has been vacant or unoccupied 60 or more consecutive days. This does not apply to: 1. Seasonal unoccupancy; 2. Buildings in the course of construction, reno- vation or addition; or 3. Buildings to which the Vacancy Pen -nit endorsement applies. Buildings with 65% or more of the rental units or floor area vacant or unoccupied are considered unoccupied under this provision. B. After damage by a covered cause of loss, perma- nent repairs to the building: 1. Have not started, and 2. Have not been contracted for, within 30 days of initial payment of loss. C. The building has: 1. An outstanding order to vacate; 2. An outstanding demolition order; 3. Been declared unsafe by a governmental au- thority. D. Fixed and salvageable items have been or are being removed from the building and are not being re- placed. This does not apply to such removal that is necessary or incidental to any renovation or re- modeling. E. Failure to: 1. Furnish necessary heat, water, sewer service or electricity for 30 consecutive days or more, except during a period of seasonal unoccu- pancy; or 2. Pay property taxes that are owing and have been outstanding for more than one year fol- lowing the date due, except that this provision will not apply where you are in a bona fide dispute with the taxing authority regarding payment of such taxes. This Form must be attached to Change Endorsement when issued after the policy is written. One of the Fireman's Fund Insurance Companies as named in the policy Se etary CP0299 11-85 LU Copyright, ISO Commercial Risk Services, Inc., 1984 M M O O Causes of Loss - Earthquake Form - CP 10 40 06 95 Policy Amendment(s) Commercial Property A. Covered Causes of Loss When Earthquake is shown in the Declarations, Covered Causes of Loss means the following: 1. Earthquake. 2. Volcanic Eruption, meaning the eruption, ex- plosion or effusion of a volcano. All Earthquake shocks or Volcanic Eruptions that occur within any 168 -hour period will constitute a single Earthquake or Volcanic Eruption. The ex- piration of this policy will not reduce the 168 -hour period. B. Exclusions 1. We will not pay for loss or damage caused directly or indirectly by any of the following. Such loss or damage is excluded regardless of any other cause or event that contributes concurrently or in any sequence to the loss. a. Ordinance or Law The enforcement of any ordinance or law: (1) Regulating the construction, use or repair of any property; or (2) Requiring the tearing down of any property, including the cost of re- moving its debris. This exclusion, Ordinance or Law, ap- plies whether the loss results from: (1) An ordinance or law that is enforced even if the property has not been damaged; or (2) The increased costs incurred to comply with an ordinance or law in the course of construction, repair, renovation, remodeling or demoli- tion of property, or removal of its debris, following a physical loss to that property. b. Governmental Action Seizure or destruction of property by or- der of governmental authority. c. Nuclear Hazard Nuclear reaction or radiation, or radio- active contamination, however caused. d. Utility Services The failure of power or other utility ser- vice supplied to the described premises, however caused, if the failure occurs away from the described premises. But if the failure of power or other utility service results in a Covered Cause of Loss, we will pay for the loss or damage caused by that Covered Cause of Loss. e. War and Military Action (1) War, including undeclared or civil war; (2) Warlike action by a military force, including action in hindering or de- fending against an actual or expected attack, by any government, sover- eign or other authority using mili- tary personnel or other agents; or This Form must be attached to Change Endorsement when issued after the policy is written. one of the Fireman's Fund Insurance Companies as named in the policy Se etary CP1040 6-95 Pae 1 of 6 Copyright, ISO Commercial Risk Services, Inc., 1990, 1994 g (3) Insurrection, rebellion, revolution, This exclusion does not apply to usurped power, or action taken by Extra Expense. government authority in hindering or defending against any of these. (3) Any loss caused by or resulting from direct physical loss or damage to ra- ' t. We will not pay for loss or damage caused by dio or television antennas (including or resulting from: satellite dishes) and their lead-in a. Artificially generated electrical current, wiring, masts or towers. including electric arcing, that disturbs (4) Any increase of loss caused by or electrical devices, appliances or wires. resulting from: b. Fire, explosion (other than volcanic ex- plosion), landslide, mine subsidence, tidal (a) Delay in rebuilding, repairing wave, flood, mudslide or mudflow, even or replacing the property or re - if attributable to an Earthquake or suming operations, due to in - Volcanic Eruption. terference at the location of the rebuilding, repair or replace - c. Any Earthquake or Volcanic Eruption ment by strikers or other per - that begins before the inception of this sons; or insurance. (b) Suspension, lapse or cancella- 3. Special Exclusions tion of any license, lease or The following provisions apply only to the contract. But if the suspension, lapse or cancellation is directly specified Coverage Forms. caused by the suspension of a. Business Income (And Extra Expense) operations, we will cover such Coverage Form, Business Income (With- loss that affects your Business 0 out Extra Expense) Coverage Form, or Income during the period of Extra Expense Coverage Form restoration. N x We will not pay for: (5) Any Extra Expense caused by or re- sulting from suspension, lapse or (1) Any loss caused directly or indirectly cancellation of any license, lease or by the failure of power or other contract beyond the period of resto- utility service supplied to the de- ration. scribed premises, however caused, if the failure occurs outside of a cov- (6) Any other consequential loss. ered building. b. Leasehold Interest Coverage Form � But if the failure of power or other zutility service results in a Covered (1) Paragraph B. La., Ordinance or Law, Cause of Loss, we will pay for the does not apply to insurance under loss resulting from that Covered this Coverage Form. Cause of Loss. (2) We will not pay for any loss caused LL (2) Any loss caused by or resulting by: W from: CV In (a) Your cancelling the lease; (a) Damage or destruction of fin- ished stock; or (b) The suspension, lapse or can- cellation of any license; or (b) The time required to reproduce N finished stock. (c) Any other consequential loss. CP1040 6-95 o M M O O Copyright, ISO Commercial Risk Services, Inc., 1990, 1994 Page 2 of 6 c. Legal Liability Coverage Form (1) The following Exclusions do not apply to insurance under this Cov- erage Form. (a) Paragraph B.l.a., Ordinance or Law; (b) Paragraph B. l .b., Governmental Action; (c) Paragraph B.I.e., Nuclear Haz- ard; (d) Paragraph B.l.d., Utility Ser- vices; and (e) Paragraph B. Le., War and Mil- itary Action. (2) The following additional exclusions apply to insurance under this Cov- erage Form: (a) Contractual Liability We will not defend any claim or suit, or pay damages that you are legally liable to pay, solely by reason of your as- sumption of liability in a con- tract or agreement. (b) Nuclear Hazard We will not defend any claim or suit, or pay any damages, loss, expense or obligation, re- sulting from nuclear reaction or radiation, or radioactive con- tamination, however caused. C. Limitation We will not pay for loss of or damage to exterior masonry veneer (except stucco) on wood frame walls caused by or resulting from Earthquake or Volcanic Eruption. The value of such veneer will not be included in the value of Covered Property or the amount of loss when applying: 1. The Deductible applicable to this form; or 2. The Additional Condition, Coinsurance, ap- plicable to this Coverage Part. CP1040 6-95 Copyright, ISO Commercial Risk Services, Inc., 1990, 1994 This limitation does not apply if: 1. The premises description in the Declarations specifically states Including Masonry Veneer; or 2. Less than 10% of the total outside wall area is faced with masonry veneer (excluding stucco). D. Deductible 1. The provisions of section D.2. of this endorsement are applicable to all Coverage Forms except: a. Business Income (And Extra Expense) Coverage Form; b. Business Income (Without Extra Ex- pense) Coverage Form; c. Extra Expense Coverage Form. 2. The Deductible, if any, in this Coverage Part is replaced by the following with respect to Earthquake and Volcanic Eruption: a. All Policies (1) A Deductible is calculated separately for, and applies separately to: (a) Each building, if two or more buildings sustain loss or dam- age; (b) The building and to personal property in that building, if both sustain loss or damage; (c) Personal property at each building, if personal property at two or more buildings sustains loss or damage; (d) Personal property in the open. (2) We will not pay for loss or damage until the amount of loss or damage exceeds the applicable Deductible. We will then pay the amount of loss or damage in excess of that Deduct- ible, up to the applicable Limit of Insurance, after any reduction re- quired by any of the following: Co- insurance Condition, Agreed Value Page 3 of 6 Optional Coverage, Additional the deductible amount as a Condition - Need for Adequate In- percentage of the full value(s) surance or Additional Condition - as of the report dates. Need for Full Reports. (b) If the first Report of Values is (3) When property is covered under the not filed with us prior to loss Coverage Extension for Newly Ac- or damage, we will determine quired or Constructed Property: In the deductible amount as a determining the amount, if any, that percentage of the applicable we will pay for loss or damage, we Limit(s) of Insurance. will deduct an amount equal to a percentage of the value(s) of the C. Calculation of the Deductible - Blanket property at time of loss. The appli- Insurance Other Than builders Risk cable percentage for Newly Acquired or Constructed Property is the (1) Property Not Subject to Value Re - highest percentage shown in the porting Forms Declarations for any described In determining the amount, if any, premises. that we will pay for loss or damage, b. Calculation of the Deductible - Specific we will deduct an amount equal to Insurance Other Than Builders Risk a percentage (as shown in the Dec- larations) of the value(s) of the (1) Property Not Subject to Value Re- property that has sustained loss or porting Forms damage. The value(s) to be used are those shown in the most recent In determining the amount, if any, Statement of Values on file with us. that we will pay for loss or damage, gwe will deduct an amount equal to (2) Property Subject to Value Report- a percentage (as shown in the Dec- ing Forms a laxations) of the Limit(s) of Insur- ance applicable to the property that In determining the amount, if any, has sustained loss or damage. that we will pay for property that has sustained loss or damage, we will (2) Property Subject to Value Report- deduct an amount equal to a per- ing Forms centage (as shown in the Declara- tions) of the value(s) of that In determining the amount, if any, property as of the time of loss or that we will pay for loss or damage, damage. we will deduct an amount equal to a percentage (as shown in the Dec- d. Calculation of the Deductible - Builders larations) of the value(s) of the Risk Insurance Z property that has sustained loss or damage. The value(s) to be used are (1) Builders Risk Other Than Reporting the latest value(s) shown in the most Form recent Report of Values on file with s In determining the amount, if any., LL w US. that we will pay for property that However: has sustained loss or damage, we will a, deduct an amount equal to a per - (a) If the most recent Report of centage (as shown in the Declara- Values shows less than the full tions) of the actual cash value(s) of value(s) of the property on the that property as of the time of loss report dates, we will determine or damage. W ro ro 0 0 CP1040 6-95 Copyright, ISO Commercial Risk Services, Inc., 1990, 1994 Page 4 of 6 (2) Builders Risk Reporting Form In determining the amount, if any, that we will pay for loss or damage, we will deduct an amount equal to a percentage (as shown in the Dec- larations) of the value(s) of the property that has sustained loss or damage. The value(s) to be used are the actual cash value(s) shown in the most recent Report of Values on file with us. However: (a) If the most recent Report of Val- ues shows less than the actual cash value(s) of the property on the report date, we will deter- mine the deductible amount as a percentage of the actual cash value(s) as of the report date. (b) If the first Report of Values is not filed with us prior to loss or damage, we will determine the deductible amount as a percentage of the actual cash value(s) of the property as of the time of loss or damage. 3. The following is applicable only to the Cov- erage Forms specified below: a. Business Income (And Extra Expense) Coverage Form; b. Business Income (Without Extra Ex- pense) Coverage Form; c. Extra Expense Coverage Form. For buildings over 4 stories in height we will only pay for loss you sustain after the first 168 hours after direct physical loss or damage caused by or resulting form Earthquake or Volcanic Eruption. E. Examples - Application of Deductible in D.Z.: Example ##1 - Specific Insurance (D.2.b.(1)) The amount of loss to the damaged building is $60,000. The value of the damaged building at time of loss is $100,000. The Coinsurance percentage shown CP1040 6-95 Copyright, ISO Commercial Risk Services, Inc., 1990, 1994 in the Declarations is 80%; the minimum Limit of Insurance needed to meet the coinsurance re- quirement is $80,000 (80% of $100,000). The actual Limit of Insurance on the damaged building is $70,000. The Deductible is 5% Step (1): $70,000 _ $80,000 = .875 Step (2): $60,000 X .875 = $52,500 Step (3): $70,000 X 5% _ $3,500 Step (4): $52,500 - $3,500 = $49,000 The most we will pay is $49,000. The remainder of the loss, $11,000, is not covered due to the Co- insurance penalty for inadequate insurance (steps (1) and (2)) and the application of the Deductible (steps (3) and (4)). Example ##2 - Specific Insurance (D.2.b.(1)) The amounts of loss to the damaged property are $60,000 (building) and $40,000 (building personal property in building). The value of the damaged building at time of loss is $100,000. The value of the business personal property in that building is $80,000. The Coin- surance percentage shown in the Declarations is 80%; the minimum Limits of Insurance needed to meet the coinsurance requirement are $80,000 (80% of $100,000) for the building and $64,000 (80% of $80,000) for the business personal prop- erty. The actual Limits of Insurance on the damaged property are $80,000 on the building and $64,000 on the business personal property (therefore no Coinsurance penalty). The Deductible is 10% Building Step (1): $80,000 X 10% = $8,000 Step (2): $60,000 - $8,000 = $52,000 Business Personal Property Step (1): $64,000 X 10% _ $6,400 Step (2): $40,000 - $6,400 = $33,600 The most we will pay is $85,600. That portion of the total loss not covered due to application of the Deductible is $14,400. Page 5 of 6 Example ##3 - Blanket Insurance (D.2.c.(I)) The sum of the values of Building ##1 ($500,000), Building ##2 ($500,000) and Building ##3 ($1,000,000), as shown in the most recent State- ment of Values on file with us, is $2,000,000. The Coinsurance percentage shown in the Decla- rations is 90%; the minimum Blanket Limit of Insurance needed to meet the coinsurance re- quirement is $1,800,000 (90% of $2,000,000). The actual Blanket Limit of Insurance covering Buildings ##1, ##2, and ##3, shown in the Declara- tions, is $1,800,000 (therefore no Coinsurance penalty). Buildings ##1 and ##2 have sustained damage; the amounts of loss to these buildings are $40,000 (Building ##1) and $60,000 (Building ##2). The Deductible is 5% Building #1 Step (1) :$500,000 X 5% = $25,000 Step (2) :$40,000 - $25,000 = $15,000 x Building ##2 Step (1) :$500,000 X 5% = $25,000 Step (2) :$60,000 - $25,000 = $35,000 N The most we will pay is $50,000. That portion of the total loss not covered due to application of the Deductible is $50,000. Example ##4 - Blanket Insurance (D.2.c.(1)) The sum of the values of Building ##1 ($500,000), 0 0 LL w N v) d U U W W CD O N_ U CP1040 6-95 LU Copyright, ISO Commercial Risk Services, Inc., 1990, 1994 M M O 0 Building ##2 ($500,000), Business Personal Prop- erty at Building ##1 ($250,000) and Business Per- sonal Property at Building ##2 ($250,000), as shown in the most recent Statement of Values on file with us, is $1,500,000. The Coinsurance percentage shown in the Decla- rations is 90%; the minimum Blanket Limit of Insurance needed to meet the coinsurance re- quirement is $1,350,000 (90% of $1,500,000). The actual Blanket Limit of Insurance covering Buildings #1 and ##2 and Business Personal Prop- erty at Buildings #1 and ##2, shown in the Decla- rations, is $1,350,000. Therefore there is no Coinsurance penalty. Building #1 and Business Personal Property at Building ##1 have sustained damage; the amounts of loss are $95,000 (Building) and $5,000 (Business Personal Property). The Deductible is 10% Building Step (1): $500,000 X 10% _ $50,000 Step (2): $95,000 - $50,000 = $45,000 Business Personal Property Step (1): $250,000 X 10% _ $25,000 The loss, $5,000, does not exceed the deductible. The most we will pay is $45,000. The remainder of the building loss, $50,000, is not covered due to application of the Deductible. There is no loss payment for the business personal property. Page 6 of 6 GENERAL LIABILITY General Liability GL POLICY NUMBER 8 H1 MZG 07186870 NAMED INSURED DOVER SHORES PET CARE CENTER PORTFOLIO POLICY (R) GENERAL LIABILITY DECLARATIONS Insurance is provided only for those Coverages, Limits of Liability and Endorsements shown below. Coverages Limits of Liability COMMERCIAL GENERAL LIABILITY COVERAGE PART GENERAL AGGREGATE LIMIT (Other Than Products - 02,000,000 Completed Operations) PRODUCTS - COMPLETED OPERATIONS AGGREGATE LIMIT $1,000,000 PERSONAL & ADVERTISING INJURY LIMIT $1,000,000 EACH OCCURANCE LIMIT $11000,000 FIRE DAMAGE LIMIT ANY ONE FIRE $100,000 « MEDICAL EXPENSE LIMIT ANY ONE PERSON 0 $5,000 0 g The audit period shall be ANNUAL 0 O N GENERAL LIABILITY ENDORSEMENTS n AMENDMENT OF INSURING AGREEMENT KNOWN INJURY OR DAMAGEENDORSEMENT (CG0057 0999) ADDITIONAL INSURED - MANAGERS OR LESSORS OF PREMISES (CG 20 11 11 85) Designation of Premises (Part Leased to You): CERTIFICATE HOLDER NAMED AS ADDITIONAL INSURED. Name of Person or Organizaton (Additional Insured): CITY OF NEWPORT BEACH 3300 NEWPORT BLVD. z NEWPORT BEACH CA 92660 Designation of Premises (Part Leased to You): PREMISES: 2075 NEWPORT BLVD., COSTA MESA, CA 92627 CERTIFICATE HOLDE 0 0 LL Name of Person or Organizaton (Additional Insured): N P.S. BUSINESS PARKS N 23521 RIDGE ROUTE DRIVE, #A U LAGUNA HILLS CA 92653 LL W O GL - 1 W m O M M O 0 POLICY NUMBER 8 Hl MZG 07186870 NAMED INSURED DOVER SHORES PET CARE CENTER PORTFOLIO POLICY (R) GENERAL LIABILITY SCHEDULE LOCATION 001 BUILDING 001 2075 NEWPORT BLVD. COSTA MESA CA 92627 Classifications(s) Basis of Premium Exposure Rate LOCATION 001 BUILDING 001 Premises/Operations VETERINARIAN/VETERINARY HOSPITAL # OF VETS 2 GL - 2 Veterinarian's Professional Liability Coverage Form - 143571 01 97 Policy Amendment(s) Commercial General Liability Coverage provided by the policy, is amended to include (2) The wrongful act is committed in the the following Coverage Part. coverage territory during the policy pe- riod. This Coverage Form completes the Veterinarian's Professional Liability Coverage provided by us. Cov- C. We may, at our discretion, investigate and erage provided under this Veterinarian's Professional with the insured's written consent, settle any Liability Coverage Form is separate from but not ac- claim or suit that may result. Our right and cumulative to coverage provided under the Commercial duty to defend ends when we have used up General Liability Coverage Form. the applicable Limits of Insurance in the payment of judgments and settlements. Throughout this Coverage Form the words you and your refer to the Named Insured shown in the Decla- No other obligation or liability to pay sums or rations. The words we, us and our refer to the Com - perform acts or services is covered unless explicitly pany providing this insurance. provided for in I.3. Supplementary Payments. 2. Exclusions The word insured means any person or organization qualifying as such under Who Is an Insured Section II. This insurance does not apply to: Other words and phrases that appear in bold face have a• Any injury or damage: special meaning. Refer to Definitions (Section V). (1) Resulting from a criminal act; L Section I - Coverages (2) Caused by an insured while under the oinfluence of intoxicants or narcotics; 1. Insuring Agreement g (3) Caused by anyone employed in violation o a. We will pay those sums that the insured be- of law; co comes legally obligated to pay as compensa- N tory damages because of a wrongful act. n (4) To animals owned by you; b. This insurance applies only to a claim or suit b. Theft of any animals; arising out of a wrongful act committed by c. Any obligation of the insured under a workers the insureds individually or collectively; pro- compensation, disability benefits or unem- vided that: ployment compensation law or any similar law. (1) All insured veterinarian's and veterinary technicians are registered and licensed to d. Injury to: practice as veterinarians, or are registered (1) An employee of the insured arising out veterinary technicians under the laws of of and in the course of: Z all jurisdictions in which they practice; and (a) Employment by the insured; or o This Form must be attached to Change Endorsement when issued after the policy is written 0 W One of the Fireman's Fund Insurance Companies as named in the nolicv W N U LL W o Se etary President N U 0 143571 1-97 Page 1 of 5 (b) Performing duties related to the conduct of the insured's business; or (2) The spouse, child, parent, brother or sis- ter of that employee as a consequence of paragraph (1) above. This exclusion applies: (1) Whether the insured may be liable as an employer or in any other capacity; and (2) To any obligation to share damages with or repay someone else who must pay damages because of the injury. e. Any claim or suit and any costs, fees, ex- penses, fines or penalties arising in whole or in part from: (1) Refusal to employ; (2) Termination of employment; (3) Coercion, demotion, evaluation, reas- signment, discipline, defamation, harass- ment, humiliation, discrimination or other employment-related practices, pol- icies, acts or omissions. f. Any claim or suit and any costs, fees, ex- penses, fines or penalties arising in whole or in part from the actual, alleged or threatened discharge, dispersal, seepage, migration, re- lease or escape of pollutants; Pollutants mean any man-made or naturally occurring solid, liquid, gaseous or thermal irritant or impurity, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recy- cled, reconditioned or reclaimed. g. Punitive damages, fines or penalties, or the double portion of treble damages; h. Any costs, fees or expenses which the insured becomes obligated to pay as a result of ad- verse judgment for injunctive or declaratory relief; i. Liability of others assumed by the insured under any contract or agreement including li- ability assumed by an insured under any agreement guaranteeing the result of any treatment; Injury or damages arising out of the owner- ship, maintenance, use, loading or unloading of motor vehicles, trailers, aircraft or watercraft. 3. Supplementary Payments Subject to l.c. of the Insuring Agreement, we will pay, with respect to any claim we investigate or settle, or any suit against an insured we defend: a. All expenses we incur. b. The cost of bonds to release attachments, but only for bond amounts within the applicable Limit of Insurance. We do not have to fur- nish these bonds. c. All reasonable expenses incurred by the in- sured at our request to assist us in the inves- tigation or defense of the claim or suit including actual loss of earnings up to $250 a day because of time off from work. d. All costs taxed against the insured in the suit. e. Prejudgment interest awarded against the in- sured on that part of the judgment we pay. If we make an offer to pay the applicable Limit of Insurance, we will not pay any pre- judgment interest based on that period of time after the offer. f. All interest on the full amount of any judg- ment that accrues after entry of the judgment and before we have paid, offered to pay, or deposited in court the part of the judgment that is within the applicable Limit of Insur- ance. These payments will not reduce the Limits of In- surance. Section II - Who Is an Insured If you are designated in the Declarations as: a. An individual, you and your spouse are in- sureds, but only with respect to the conduct of a veterinarian business of which you are the sole owner; b. A partnership or joint venture, you are an in- sured. Your members, your partners and their spouses are also insureds, but only with 143571 1-97 Page 2 of 5 respect to the conduct of your veterinary a. Insureds; business; b. Claims made or suits brought; or c. A veterinary business organization other than a partnership or joint venture, you are an in- C. Persons or organizations making claims or sured. Your executive officers and directors bringing suits. are insureds, but only with respect to their 2. The Each Claim Limit is the most we will pay for duties as your officers or directors. Your damages from any one wrongful act committed stockholders are also insureds, but only with during the policy period, regardless of the number respect to their liability as your stockholders. of claimants. Injury or damages to any one animal d. A limited liability company, you are an in- which arises out of a single wrongful act, or a series sured. Your members are also insureds, but of related wrongful acts, whether committed by only with respect to the conduct of your one or more insureds, will be considered one veterinary business. Your managers are in- wrongful act and only one Each Claim Limit will sureds, but only with respect to their duties apply. as your managers. 3. The Aggregate Limit is the most we will pay for all damages because of all wrongful acts which are 2. Each of the following is also an insured: committed during each policy period. a. Your employees, other than your executive The Limits of Insurance of this Coverage Part will ap- officers, but only for acts within the scope of ply separately to each consecutive annual period and their employment by you; to any remaining period of less than 12 months, starting b. Your legal representative if you die, but only with the beginning of the policy period shown in the Declarations, unless the policy period is extended after iL with respect to duties as such. That repre- issuance for an additional period of less than 12 o sentative will have all your rights and duties months. In that case, the additional period will be o under this Coverage Form. deemed part of the last preceding period for purposes 3. Any veterinary business organization you newly of determining the Limits of Insurance. acquire or form other than a joint venture, and Section N -Conditions C4 over which you maintain ownership or majority " interest, will qualify as a Named Insured if there 1. Duties in the Event of Wrongful Act, Claim, or is not other similar insurance available to that or- Suit ganization. However: a. You must see to it that we are notified as a. Coverage under this provision is afforded only soon as practicable of a wrongful act which until the 90th day after you acquire or form may result in a claim. Notice should include: the organization or the end of the policy pe- riod, whichever is earlier. (1) How, when and where the wrongful act took place; and b. Coverage does not apply to wrongful acts Z committed before you acquired or formed the (2) The names and addresses of any wit - organization. nesses. No person or organization is an insured with respect to b. If a claim is made or suit is brought against the conduct of any current or past partnership, joint any insured, you must: venture or limited liability company that is not shown (1) Immediately record the specifics of the N as a Named Insured in the Declarations. t2 a claim or suit and the date received; and 2 Section III - Limits of Insurance (2) Notify us as soon as practicable. W 0 1. The Lin -tits of Insurance shown in the Declarations You must see to it that we receive written N and the rules below fix the most we will pay re- notice of the claim or suit as soon as practi- u gardless of the number of: cable. _N 143571 1-97 M CO O 0 Page 3 of 5 c. You and any other involved insured must (1) Immediately send us copies of any de- mands, notices, summonses or legal pa- pers received in connection with the claim or suit; (2) Authorize us to obtain records and other information; (3) Cooperate with us in the investigation or settlement of the claim or suit; and which disposes of a cause of action by declaring that the plaintiff is or is not entitled to the remedy asked for; but final judgment does not include de- fault judgments. 3. Other Insurance a. (4) Assist us, upon our request, in the enforcement of any right against any person or organization which may be li- able to the insured because of injury or b. damage to which this insurance may also apply. d. No insured will, except at that insured's own cost, voluntarily make a payment, assume any obligation, or incur any expense, without our consent. 2. Legal Action Against Us a. No person or organization has a right under this Coverage Form: (1) To join us as a party or otherwise bring us into a suit asking for damages from an insured; or (2) To sue us on this Coverage Form unless all of its terms have been fully complied with. b. A person or organization may sue us to re- cover on an agreed settlement, or on a final judgment against an insured obtained after an actual trial. But we will not be liable for damages that are: (1) Not payable under the terms of this Coverage Form; or (2) That are in excess of the applicable Limit of Insurance. An agreed upon settlement means a settlement and release of liability signed by us, the insured and the claimant or the claimant's legal representative. A final judgment means a judgment rendered on the facts or the law by a court of the judicial branch of government having original jurisdiction If other valid and collectible insurance is available to any insured for a loss which would otherwise be covered under this Cov- erage Form, this insurance is excess over the other insurance; unless the other insurance was bought specifically to apply in excess of the Limits of Insurance shown in the Decla- rations of this Coverage Form. When this insurance is excess, we will have no duty to defend any claim or suit that any other insurer has a duty to defend. If no other insurer defends, we will undertake to do so, but we will be entitled to the insured's rights against all those other insurers. c. When this insurance is excess over the other insurance, we will pay only your share of the amount of the loss, if any, that exceeds the sum of: (1) The total amount that all such other in- surance would pay for the loss in the ab- sence of this insurance; and (2) The total of all deductible and self- insured amounts under all the other in- surance. 4. Representations By accepting this policy, you agree that: a. The statements in the Declarations and the Application forming part of this Coverage Form are accurate and complete; b. Those statements are based upon representa- tions you made to us; and c. We have issued this Coverage Form in reli- ance upon your representations. 5. Transfer of Rights of Recovery Against Others to Us If the insured has rights to recover all or part of any payment we have made under this Coverage Part, those rights are transferred to us. The in- sured must do nothing after loss to impair them. 143571 1-97 Page 4 of 5 At our request, the insured will bring suit or a. An arbitration proceeding in which such transfer those rights to us and help us enforce damages are claims and to which the insured them. must submit or does submit with our consent; or Section V - Definitions b. Any other alternative dispute resolution pro- ceeding in which such damages are claimed a. The United States of America (including its and to which the insured submits with our territories and possessions), Puerto Rico and consent. Canada; 3. Wrongful act means an error, omission or b. International waters or airspace, provided the negligent act by an insured in the rendering of or damage does not occur in the course of travel failure to render professional veterinarian services. or transportation to or from any place not Wrongful act includes acts or omissions in the included in a. above; or rendering of or failure to render professional veterinarian services by any person for whose acts C. All parts of the world if: or omissions the insured is legally responsible. (1) The insured's responsibility to pay Any such error, or omission or negligent act, or a damages is determined in a suit on the series of related errors, or omissions or negligent merits, in the territory described in a. acts to any one animal whether committed by one above; or or more insureds, will be considered one wrongful act. (2) In a settlement we agree to. All other terms and conditions of the Commercial Gen - 2. Suit means a civil proceeding in which damages to eral Liability Coverage Part of the policy that are not U_ which this insurance applies are alleged. Suit in- in conflict with this Veterinarian's Professional Liability 0 cludes: 0 0 0 0 0 0 _0 N n k Coverage Part shall apply. U) Z O O (O W N h a U U W W O O T1 T v 143571 1-97 Page 5 of 5 Commercial General Liability Coverage Form - CG 00 Ol 07 98 Policy Amendment(s) Commercial General Liability Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and what is and is not covered. Throughout this policy the words you and your refer to the Named Insured shown in the Declarations, and any other person or organization qualifying as a Named Insured under this policy. The words we, us and our refer to the company providing this insurance. The word insured means any person or organization qualifying as such under Section II - Who Is an In- sured. Other words and phrases that appear in bold face have special meaning. Refer to Section V - Definitions. Section I - Coverages Coverage A. Bodily Injury and Property Damage Li- ability 1. Insuring Agreement a. We will pay those sums that the insured be- comes legally obligated to pay as damages because of bodily injury or property damage to which this insurance applies. We will have the right and duty to defend the insured against any suit seeking those damages. However, we will have no duty to defend the insured against any suit seeking damages for bodily injury or property damage to which this insurance does not apply. We may at our discretion investigate any occurrence and set- tle any claim or suit that may result. But: (1) The amount we will pay for damages is limited as described in Section III - Lim- its of Insurance; and (2) Our right and duty to defend end when we have used up the applicable limit of insurance in the payment of judgments or settlements under Coverages A or B or medical expenses under Coverage C. No other obligation or liability to pay sums or perform acts or services is covered unless explicitly provided for under Supplementary Payments - Coverages A and B. b. This insurance applies to bodily injury and property damage only if. (1) The bodily injury or property damage is caused by an occurrence that takes place in the coverage territory; and (2) The bodily injury or property damage occurs during the policy period. C. Damages because of bodily injury include damages claimed by any person or organiza- tion for care, loss of services or death resulting at any time from the bodily injury. 2. Exclusions This insurance does not apply to: a. Expected or Intended Injury Bodily injury or property damage expected or intended from the standpoint of the insured. This exclusion does not apply to bodily injury resulting from the use of reasonable force to protect persons or property. b. Contractual Liability Bodily injury or property damage for which the insured is obligated to pay damages by reason of the assumption of liability in a contract or agreement. This exclusion does not apply to liability for damages: This Form must be attached to Change Endorsement when issued after the policy is written. One of the Fireman's Fund Insurance Companies as named in the policy Se retary CG0001 7-98 Copyright, Insurance Services Office, Inc., 1997 Page 1 of 16 (1) That the insured would have in the ab- (1) An employee of the insured arising out sence of the contract or agreement; or of and in the course of: (2) Assumed in a contract or agreement that (a) Employment by the insured; or is an insured contract, provided the bod- ily injury or property damage occurs (b) Performing duties related to the subsequent to the execution of the con- conduct of the insured's business; tract or agreement. Solely for the pur- or poses of liability assumed in an insured contract, reasonable attorney fees and (2) The spouse, child, parent, brother or sis- necessary litigation expenses incurred by ter of that employee as a consequence of or for a party other than an insured are (1) above. deemed to be damages because of bodily injury or property damage, provided: This exclusion applies: (a) Liability to such party for, or for the (1) Whether the insured may be liable as an cost of, that party's defense has also employer or in any other capacity; and been assumed in the same insured contract; and (2) To any obligation to share damages with or repay someone else who must pay (b) Such attorney fees and litigation ex- damages because of the injury. penses are for defense of that party against a civil or alternative dispute This exclusion does not apply to liability as - resolution proceeding in which sumed by the insured under an insured con - damages to which this insurance ap- plies are alleged. f. Pollution C. Liquor Liability O (1) Bodily injury or property damage arising o Bodily injury or property damage for which out of the actual, alleged or threatened any insured may be held liable by reason of: discharge, dispersal, seepage, migration, release or escape of pollutants: n (1) Causing or contributing to the intoxica- tion of any person; (a) At or from any premises, site or lo- cation which is or was at any time (2) The furnishing of alcoholic beverages to owned or occupied by, or rented or a person under the legal drinking age or loaned to, any insured. However, under the influence of alcohol; or this subparagraph does not apply to: (3) Any statute, ordinance or regulation re- (i) Bodily injury if sustained within lating to the sale, gift, distribution or use a building and caused by of alcoholic beverages. smoke, fumes, vapor or soot Z) This exclusion applies only if you are in the from equipment used to heat business of manufacturing, distributing, sell- that building; ing, serving or furnishing alcoholic beverages. (ii) Bodily injury or property dam - age for which you may be held d. Workers' Compensation and Similar Laws liable, if you are a contractor LL0 and the owner or lessee of such Any obligation of the insured under a work- ers' compensation, disability benefits or un -10 premises, site or location has a employment compensation law or any similar been added to your policy as an v law. additional insured with respect W to your ongoing operations e. Employer's Liability performed for that additional insured at that premises, site or N Bodily injury to: location and such premises, site CG0001 7-98 cWe Copyright, Insurance Services Office, Inc., 1997 Page 2 of 16 M M O O M or location is not and never was to the premises, site or location owned or occupied by, or with the intent that they be rented or loaned to, any in- discharged, dispersed or released sured, other than that addi- as part of the operations being tional insured; or performed by such insured, hydraulic or mechanical func- contractor or subcontractor; (iii) Bodily injury or property dam- pollutants; or age arising out of heat, smoke (ii) Bodily injury or property dam - or fumes from a hostile fire; age sustained within a building or other operating fluids escape and caused by the release of (b) At or from any premises, site or lo- gases, fumes or vapors from cation which is or was at any time materials brought into that used by or for any insured or others building in connection with for the handling, storage, disposal, operations being performed by processing or treatment of waste; you or on your behalf by a tional discharge, dispersal or re- contractor or subcontractor; or (c) Which are or were at any time However, this paragraph does not apply transported, handled, stored, treated, (iii) Bodily injury or property dam - disposed of, or processed as waste age arising out of heat, smoke by or for any insured or any person or fumes from a hostile fire. or organization for whom you may be legally responsible; or (e) At or from any premises, site or lo- cation on which any insured or any (d) At or from any premises, site or lo- contractors or subcontractors work - cation on which any insured or any ing directly or indirectly on any contractors or subcontractors work- insured's behalf are performing op- ing directly or indirectly on any erations if the operations are to test insured's behalf are performing op- for, monitor, clean up, remove, erations if the pollutants are brought contain, treat, detoxify or neutralize, on or to the premises, site or lo- or in any way respond to, or assess cation in connection with such op- the effects of, pollutants. erations by such insured, contractor or subcontractor. However, this (2) Any loss, cost or expense arising out of subparagraph does not apply to: any: (i) Bodily injury or property dam- (a) Request, demand, order or statutory age arising out of the escape of or regulatory requirement that any fuels, lubricants or other oper- insured or others test for, monitor, ating fluids which are needed to clean up, remove, contain, treat, de - perform the normal electrical, toxify or neutralize, or in any way hydraulic or mechanical func- respond to, or assess the effects of tions necessary for the opera- pollutants; or tion of mobile equipment or its parts, if such fuels, lubricants (b) Claim or suit by or on behalf of a or other operating fluids escape governmental authority for damages from a vehicle part designed to because of testing for, monitoring, hold, store or receive them. cleaning up, removing, containing, This exception does not apply treating, detoxifying or neutralizing, if the bodily injury or property or in any way responding to, or as - damage arises out of the inten- sessing the effects of pollutants. tional discharge, dispersal or re- lease of the fuels, lubricants or However, this paragraph does not apply other operating fluids, or if such to liability for damages because of fuels, lubricants or other oper- property damage that the insured would ating fluids are brought on or have in the absence of such request, CG0001 7-98 Copyright, Insurance Services Office, Inc., 1997 Page 3 of 16 demand, order or statutory or regulatory requirement, or such claim or suit by or on behalf of a governmental authority. g. Aircraft, Auto or watercraft Bodily injury or property damage arising out of the ownership, maintenance, use or en- trustment to others of any aircraft, auto or watercraft owned or operated by or rented or loaned to any insured. Use includes operation and loading or unloading. This exclusion does not apply to: (1) A watercraft while ashore on premises you own or rent; (2) A watercraft you do not own that is: (a) Less than 26 feet long; and (b) Not being used to carry persons or property for a charge; (3) Parking an auto on, or on the ways next x to, premises you own or rent, provided LL the auto is not owned by or rented or loaned to you or the insured; 0 g (4) Liability assumed under any insured N contract for the ownership, maintenance N or use of aircraft or watercraft; or n (5) Bodily injury or property damage arising out of the operation of any of the equip- ment listed in paragraph f.(2) or f.(3) of the definition of mobile equipment. h. Mobile Equipment Bodily injury or property damage arising out of: z (1) The transportation of mobile equipment by an auto owned or operated by or rented or loaned to any insured; or s (2) The use of mobile equipment in, or while LL in practice for, or while being prepared N for, any prearranged racing, speed, dem- olition or stunting activity. U W i. War Bodily injury or property damage due to war, N whether or not declared, or any act or CG0001 7-98 00 Copyright, Insurance Services Office, Inc., 1997 M Cl) O O condition incident to war. War includes civil war, insurrection, rebellion or revolution. This exclusion applies only to liability as- sumed under a contract or agreement. Damage to Property Property damage to: (1) Property you own, rent, or occupy; (2) Premises you sell, give away or abandon, if the property damage arises out of any part of those premises; (3) Property loaned to you; (4) Personal property in the care, custody or control of the insured; (5) That particular part of real property on which you or any contractors or sub- contractors working directly or indirectly on your behalf are performing oper- ations, if the property damage arises out of those operations; or (6) That particular part of any property that must be restored, repaired or replaced because your work was incorrectly per- formed on it. Paragraphs (1), (3) and (4) of this exclusion do not apply to property damage (other than damage by fire) to premises, including the contents of such premises, rented to you for a period of 7 or fewer consecutive days. A separate limit of insurance applies to Damage to Premises Rented to You as described in Section III - Limits of Insurance. Paragraph (2) of this exclusion does not apply if the premises are your work and were never occupied, rented or held for rental by you. Paragraphs (3), (4), (5) and (6) of this exclu- sion do not apply to liability assumed under a sidetrack agreement. Paragraph (6) of this exclusion does not apply to property damage included in the pro- ducts -completed operations hazard. k. Damage to Your Product Property damage to your product arising out of it or any part of it. Page 4 of 16 Damage to Your Work Property damage to your work arising out of it or any part of it and included in the pro- ducts -completed operations hazard. This exclusion does not apply if the damaged work or the work out of which the damage arises was performed on your behalf by a subcontractor. m. Damage to Impaired Property or Property Not Physically Injured Property damage to impaired property or property that has not been physically injured arising out of: (1) A defect, deficiency, inadequacy or dan- gerous condition in your product or your work; or (2) A delay or failure by you or anyone act- ing on your behalf to perform a contract or agreement in accordance with its terms. This exclusion does not apply to the loss of use of other property arising out of sudden and accidental physical injury to your product or your work after it has been put to its in- tended use. n. Recall of Products, Work or Impaired Prop- erty Damages claimed for any loss, cost or expense incurred by you or others for the loss of use, withdrawal, recall, inspection, repair, replace- ment, adjustment, removal or disposal of. (1) Your product; (2) Your work; or (3) Impaired property; if such product, work, or property is with- drawn or recalled from the market or from use by any person or organization because of a known or suspected defect, deficiency, inade- quacy or dangerous condition in it. o. Personal and Advertising Injury Bodily injury arising out of personal and ad- vertising injury. CG0001 7-98 Copyright, Insurance Services Office, Inc., 1997 Exclusions c. through n. do not apply to damage by fire to premises while rented to you or tempo- rarily occupied by you with permission of the owner. A separate limit of insurance applies to this coverage as described in Section III - Limits of Insurance. Coverage B. Personal and Advertising Injury Liability Insuring Agreement a. We will pay those sums that the insured be- comes legally obligated to pay as damages because of personal and advertising injury to which this insurance part applies. We will have the right and duty to defend the insured against any suit seeking those damages. However, we will have no duty to defend the insured against any suit seeking damages for personal and advertising injury to which this insurance does not apply. We may, at our discretion, investigate any offense and settle any claim or suit that may result. But: (1) The amount we will pay for damages is limited as described in Section III - Lim- its of Insurance; and (2) Our right and duty to defend end when we have used up the applicable limit of insurance in the payment of judgments or settlements under Coverage A or B or medical expenses under Coverage C. No other obligation or liability to pay sums or perform acts or services is covered unless explicitly provided for under Supplementary Payments - Coverages A and B. b. This insurance applies to personal and adver- tising injury caused by an offense arising out of your business but only if the offense was committed in the coverage territory during the policy period 2. Exclusions This insurance does not apply to: a. Personal and advertising injury: (1) Caused by or at the direction of the in- sured with the knowledge that the act would violate the rights of another and Page 5 of 16 would inflict personal and advertising injury; (2) Arising out of oral or written publication of material, if done by or at the direction of the insured with knowledge of its fal- sity; (3) Arising out of oral or written publication of material whose first publication took place before the beginning of the policy period; (4) Arising out of a criminal act committed by or at the direction of any insured; (5) For which the insured has assumed li- ability in a contract or agreement. This exclusion does not apply to liability for damages that the insured would have in the absence of the contract or agreement; (6) Arising out of a breach of contract, ex- cept an implied contract to use another's advertising idea in your advertisement; x LL (7) Arising out of the failure of goods, pro- ducts or services to conform with any 0 statement of quality or performance 0 -- made in your advertisement; M (8) Arising out of the wrong description of the price of goods, products or services stated in your advertisement; (2) Claim or suit by or on behalf of a gov- ernmental authority for damages because of testing for, monitoring, cleaning up, removing, containing, treating, detoxify- ing or neutralizing, or in any way re- sponding to, or assessing the effects of pollutants. Coverage C. Medical Payments 1. Insuring Agreement a. We will pay medical expenses as described below for bodily injury caused by an accident: (1) On premises you own or rent; (2) On ways next to premises you own or rent; or (3) Because of your operations; provided that: (1) The accident takes place in the coverage territory and during the policy period; (2) The expenses are incurred and reported to us within one year of the date of the accident; and (3) The injured person submits to examina- tion, at our expense, by physicians of our choice as often as we reasonably require. b. We will make these payments regardless of fault. These payments will not exceed the ap- plicable limit of insurance. We will pay rea- sonable expenses for: (1) First aid administered at the time of an accident; (2) Necessary medical, surgical, x-ray and dental services, including prosthetic de- vices; and (3) Necessary ambulance, hospital, profes- sional nursing and funeral services. 2. Exclusions We will not pay expenses for bodily injury; a. To any insured. b. To a person hired to do work for or on behalf of any insured or a tenant of any insured. Page 6 of 16 (9) Committed by an insured whose business is advertising, broadcasting, publishing or telecasting. However, this exclusion does not apply to Paragraphs 14.a., b. and c. of personal and advertising injury under the Definitions Section; or Z (10) Arising out of the actual, alleged or threatened discharge, dispersal, seepage, migration, release or escape of pollutants s at any time. 0 LL W N b. Any loss, cost or expense arising out of any: N (1) Request, demand or order that any in- sured or others test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or N assess the effects of pollutants; or NCopyright, M M O O CG0001 7-98 Insurance Services Office, Inc., 1997 (2) Claim or suit by or on behalf of a gov- ernmental authority for damages because of testing for, monitoring, cleaning up, removing, containing, treating, detoxify- ing or neutralizing, or in any way re- sponding to, or assessing the effects of pollutants. Coverage C. Medical Payments 1. Insuring Agreement a. We will pay medical expenses as described below for bodily injury caused by an accident: (1) On premises you own or rent; (2) On ways next to premises you own or rent; or (3) Because of your operations; provided that: (1) The accident takes place in the coverage territory and during the policy period; (2) The expenses are incurred and reported to us within one year of the date of the accident; and (3) The injured person submits to examina- tion, at our expense, by physicians of our choice as often as we reasonably require. b. We will make these payments regardless of fault. These payments will not exceed the ap- plicable limit of insurance. We will pay rea- sonable expenses for: (1) First aid administered at the time of an accident; (2) Necessary medical, surgical, x-ray and dental services, including prosthetic de- vices; and (3) Necessary ambulance, hospital, profes- sional nursing and funeral services. 2. Exclusions We will not pay expenses for bodily injury; a. To any insured. b. To a person hired to do work for or on behalf of any insured or a tenant of any insured. Page 6 of 16 c. To a person injured on that part of premises you own or rent that the person normally occupies. d. To a person, whether or not an employee of any insured, if benefits for the bodily injury are payable or must be provided under a workers compensation or disability benefits law or a similar law. e. To a person injured while taking part in ath- letics. f. Included within the products -completed oper- ations hazard. g. Excluded under Coverage A. h. Due to war, whether or not declared, or any act or condition incident to war. War includes civil war, insurrection, rebellion or revolution. Supplementary Payments - Coverages A and B 1. We will pay, with respect to any claim we investi- gate or settle, or any suit against an insured we defend: a. All expenses we incur. b. Up to $250 for cost of bail bonds required because of accidents or traffic law violations arising out of the use of any vehicle to which the Bodily Injury Liability Coverage applies. We do not have to furnish these bonds. c. The cost of bonds to release attachments, but only for bond amounts within the applicable limit of insurance. We do not have to furnish these bonds. d. All reasonable expenses incurred by the in- sured at our request to assist us in the inves- tigation or defense of the claim or suit, including actual loss of earnings up to $250 a day because of time off from work. e. All costs taxed against the insured in the suit. f. Prejudgment interest awarded against the in- sured on that part of the judgment we pay. If we make an offer to pay the applicable limit of insurance, we will not pay any prejudgment interest based on that period of time after the offer. CG0001 7-98 Copyright, Insurance Services Office, Inc., 1997 g. All interest on the full amount of any judg- ment that accrues after entry of the judgment and before we have paid, offered to pay, or deposited in court the part of the judgment that is within the applicable limit of insurance. These payments will not reduce the limits of in- surance. 2. If we defend an insured against a suit and an in- demnitee of the insured is also named as a party to the suit, we will defend that indemnitee if all of the following conditions are met: a. The suit against the indemnitee seeks damages for which the insured has assumed the liability of the indemnitee in a contract or agreement that is an insured contract; b. This insurance applies to such liability as- sumed by the insured; c. The obligation to defend, or the cost of the defense of, that indemnitee, has also been as- sumed by the insured in the same insured contract; d. The allegations in the suit and the informa- tion we know about the occurrence are such that no conflict appears to exist between the interests of the insured and the interests of the indemnitee; e. The indemnitee and the insured ask us to conduct and control the defense of that in- demnitee against such suit and agree that we can assign the same counsel to defend the in- sured and the indemnitee; and f. The indemnitee: (1) Agrees in writing to: (a) Cooperate with us in the investi- gation, settlement or defense of the suit; (b) Immediately send us copies of any demands, notices, summonses or le- gal papers received in connection with the suit; (c) Notify any other insurer whose cov- erage is available to the indemnitee; and Page 7 of 16 (d) Cooperate with us with respect to business. Your managers are insureds, but coordinating other applicable insur- only with respect to their duties as your ance available to the indemnitee; managers. and d. An organization other than a partnership, (2) Provides us with written authorization joint venture or limited liability company, you to: are an insured. Your executive officers and directors are insureds, but only with respect (a) Obtain records and other informa- to their duties as your officers or directors. tion related to the suit; and Your stockholders are also insureds, but only with respect to their liability as stockholders. (b) Conduct and control the defense of the indemnitee in such suit. 2. Each of the following is also an insured: So long as the above conditions are met, attorneys a. Your employees, other than either your exec - fees incurred by us in the defense of that indemni- utive officers (if you are an organization other tee, necessary litigation expenses incurred by us than a partnership, joint venture or limited and necessary litigation expenses incurred by the liability company) or your managers (if you indemnitee at our request will be paid as Supple- are a limited liability company), but only for mentary Payments. Notwithstanding the pro- acts within the scope of their employment by visions of paragraph 2.b.(2) of Section I - you while performing duties related to the Coverage A - Bodily Injury and Property Damage conduct of your business. However, none of Liability, such payments will not be deemed to be these employees is an insured for: damages for bodily injury and property damage and will not reduce the limits of insurance. (1) Bodily injury or personal and advertising LL injury: oOur obligation to defend an insured's indemnitee oand to pay for attorneys fees and necessary liti- (a) To you, to your partners or mem- 0gation expenses as Supplementary Payments ends hers (if you are a partnership or joint when: venture), to your members (if you are a limited liability company), or n a. We have used up the applicable limit of in- to a co -employee while that co -em - x surance in the payment of judgments or set- ployee is either in the course of his tlements; or or her employment or performing duties related to the conduct of your b. The conditions set forth above, or the terms business; of the agreement described in Paragraph f. above, are no longer met. (b) To the spouse, child, parent, brother or sister of that co -employee as a Section II - Who Is an Insured consequence of paragraph (1)(a) above; 1. If you are designated in the Declarations as: Z (c) For which there is any obligation to a. An individual, you and your spouse are in- share damages with or repay some- sureds, but only with respect to the conduct one else who must pay damages be - of a business of which you are the sole owner. cause of the injury described in co b. A partnership or joint venture, you are an in - paragraphs (1)(a) or (b) above; or W sured. Your members, your partners, and (d) Arising out of his or her providing dtheir spouses are also insureds, but only with or failing to provide professional LLrespect to the conduct of your business. health care services. W c. A limited liability company, you are an in- sured. Your members are also insureds, but N only with respect to the conduct of your (a) Owned, occupied or used by, CG0001 7-98 NCopyright, Insurance Services Office, Inc., 1997 M M O O Page 8 of 16 (b) Rented to, in the care, custody or control of, or over which physical control is being exercised for any purpose by you, any of your employees, any partner or member (if you are a partnership or joint venture), or any member (if you are a limited liability company). b. Any person (other than your employee), or any organization while acting as your real es- tate manager. c. Any person or organization having proper temporary custody of your property if you die, but only: (1) With respect to liability arising out of the maintenance or use of that property; and (2) Until your legal representative has been appointed. d. Your legal representative if you die, but only with respect to duties as such. That repre- sentative will have all your rights and duties under this Coverage Part. 3. With respect to mobile equipment registered in your name under any motor vehicle registration law, any person is an insured while driving such equipment along a public highway with your per- mission. Any other person or organization re- sponsible for the conduct of such person is also an insured, but only with respect to liability arising out of the operation of the equipment, and only if no other insurance of any kind is available to that person or organization for this liability. However, no person or organization is an insured with re- spect to: a. Bodily injury to a co -employee of the person driving the equipment; or a. Coverage under this provision is afforded only until the 90th day after you acquire or form the organization or the end of the policy pe- riod, whichever is earlier; b. Coverage A does not apply to bodily injury or property damage that occurred before you acquired or formed the organization; and C. Coverage B does not apply to personal and advertising injury arising out of an offense committed before you acquired or formed the organization. No person or organization is an insured with respect to the conduct of any current or past partnership, joint venture or limited liability company that is not shown as a Named Insured in the Declarations. Section III - Limits of Insurance 1. The Limits of Insurance shown in the Declarations and the rules below fix the most we will pay re- gardless of the number of: a. Insureds; b. Claims made or suits brought; or c. Persons or organizations making claims or bringing suits. 2. The General Aggregate Limit is the most we will pay for the sum of: a. Medical expenses under Coverage C; b. Damages under Coverage A, except damages because of bodily injury or property damage included in the products -completed operations hazard; and c. Damages under Coverage B. b. Property damage to property owned by, 3. The Products -Completed Operations Aggregate rented to, in the charge of or occupied by you Limit is the most we will pay under Coverage A or the employer of any person who is an in- for damages because of bodily injury and property sured under this provision. damage included in the products -completed oper- ations hazard. 4. Any organization you newly acquire or form, other than a partnership, joint venture or limited 4. Subject to 2. above, the Personal and Advertising liability company, and over which you maintain Injury Limit is the most we will pay under Cov- ownership or majority interest, will qualify as a erage B for the sum of all damages because of all Named Insured if there is no other similar insur- personal and advertising injury sustained by any ance available to that organization. However: one person or organization. CG0001 7-98 Copyright, Insurance Services Office, Inc., 1997 Page 9 of 16 5. Subject to 2. or 3. above, whichever applies, the Each Occurrence Limit is the most we will pay for the sum of: a. Damages under Coverage A; and b. Medical expenses under Coverage C because of all bodily injury and property damage arising out of any one occurrence. 6. Subject to 5. above, the Damage to Premises Rented to You Limit is the most we will pay un- der Coverage A for damages because of property damage to any one premises while rented to you, or in the case of damage by fire, while rented to you or temporarily occupied by you with permis- sion of the owner. 7. Subject to 5. above, the Medical Expense Limit is the most we will pay under Coverage C for all medical expenses because of bodily injury sustained by any one person. The Limits of Insurance of this Coverage Part apply LL separately to each consecutive annual period and to any remaining period of less than 12 months, starting with 0 0 the beginning of the policy period shown in the Decla- rations, unless the policy period is extended after issu- ance for an additional period of less than 12 months. In that case, the additional period will be deemed part of the last preceding period for purposes of determining the Limits of Insurance. Section IV - Commercial General Liability Conditions 1. Bankruptcy Bankruptcy or insolvency of the insured or of the insured's estate will not relieve us of our obli- gations under this Coverage Part. Z 2. Duties in the Event of Occurrence, Offense, Claim or Suit a. You must see to it that we are notified as soon as practicable of an occurrence or an LL offense which may result in a claim. To the W extent possible, notice should include: Cq (1) How, when and where the occurrence or W offense took place; (2) The names and addresses of any injured N persons and witnesses; and CGOOO 17-98 NCopyright, Insurance Services Office, Inc., 1997 M M O O (3) The nature and location of any injury or damage arising out of the occurrence or offense. b. If a claim is made or suit is brought against any insured, you must: (1) Immediately record the specifics of the claim or suit and the date received; and (2) Notify us as soon as practicable. You must see to it that we receive written notice of the claim or suit as soon as practi- cable. C. You and any other involved insured must: (1) Immediately send us copies of any de- mands, notices, summonses or legal pa- pers received in connection with the claim or suit; (2) Authorize us to obtain records and other information; (3) Cooperate with us in the investigation or settlement of the claim or defense against the suit; and (4) Assist us, upon our request, in the en- forcement of any right against any person or organization which may be liable to the insured because of injury or damage to which this insurance may also apply. d. No insured will, except at that insured's own cost, voluntarily make a payment, assume any obligation, or incur any expense, other than for first aid, without our consent. 3. Legal Action Against Us No person or organization has a right under this Coverage Part: a. To join us as a party or otherwise bring us into a suit asking for damages from an in- sured; or b. To sue us on this Coverage Part unless all of its terms have been fully complied with. A person or organization may sue us to recover on an agreed settlement or on a final judgment against an insured obtained after an actual trial; but we will not be liable for damages that are not Page 10 of 16 payable under the terms of this Coverage Part or that are in excess of the applicable limit of insur- ance. An agreed settlement means a settlement and release of liability signed by us, the insured and the claimant or the claimant's legal represen- tative. 4. Other Insurance If other valid and collectible insurance is available to the insured for a loss we cover under Coverages A or B of this Coverage Part, our obligations are limited as follows: a. Primary Insurance This insurance is primary except when b. be- low applies. If this insurance is primary, our obligations are not affected unless any of the other insurance is also primary. Then, we will share with all that other insurance by the method described in c. below. b. Excess Insurance This insurance is excess over: (1) Any of the other insurance, whether pri- mary, excess, contingent or on any other basis: (a) That is Fire, Extended Coverage, Builder's Risk, Installation Risk or similar coverage for your work; (b) That is Fire insurance for premises rented to you or temporarily occu- pied by you with permission of the owner; (c) That is insurance purchased by you to cover your liability as a tenant for property damage to premises rented to you or temporarily occupied by you with permission of the owner; or (d) If the loss arises out of the mainte- nance or use of aircraft, autos or watercraft to the extent not subject to Exclusion g. of Section I - Cov- erage A - Bodily Injury and Prop- erty Damage Liability. (2) Any other primary insurance available to you covering liability for damages arising CG0001 7-99 Copyright, Insurance Services Office, Inc., 1997 out of the premises or operations for which you have been added as an addi- tional insured by attachment of an en- dorsement. When this insurance is excess, we will have no duty under Coverage A or B to defend the insured against any suit if any other insurer has a duty to defend the insured against that suit. If no other insurer defends, we will un- dertake to do so, but we will be entitled to the insured's rights against all those other insur- ers. When this insurance is excess over other in- surance, we will pay only our share of the amount of the loss, if any, that exceeds the sum of: (1) The total amount that all such other in- surance would pay for the loss in the ab- sence of this insurance; and (2) The total of all deductible and self-in- sured amounts under all that other in- surance. We will share the remaining loss, if any, with any other insurance that is not described in this Excess Insurance provision and was not bought specifically to apply in excess of the Limits of Insurance shown in the Declara- tions of this Coverage Part. c. Method of Sharing If all of the other insurance permits contrib- ution by equal shares, we will follow this method also. Under this approach each in- surer contributes equal amounts until it has paid its applicable limit of insurance or none of the loss remains, whichever comes first. If any of the other insurance does not permit contribution by equal shares, we will contrib- ute by limits. Under this method, each insurer's share is based on the ratio of its ap- plicable limit of insurance to the total appli- cable limits of insurance of all insurers. 5. Premium Audit a. We will compute all premiums for this Cov- erage Part in accordance with our rules and rates. Page 11 of 16 shown in the Declarations written notice of the nonrenewal not less than 30 days before the expi- ration date. If notice is mailed, proof of mailing will be suffi- cient proof of notice. Section V - Definitions 1. Advertisement means a notice that is broadcast or published to the general public or specific market segments about your goods, products or services for the purpose of attracting customers or sup- porters. 2. Auto means a land motor vehicle, trailer or semi- trailer designed for travel on public roads, includ- ing any attached machinery or equipment. But auto does not include mobile equipment. 3. Bodily injury means bodily injury, sickness or dis- ease sustained by a person, including death result- ing from any of these at any time. 4. Coverage territory means: a. The United States of America (including its territories and possessions), Puerto Rico and Canada; b. International waters or airspace, provided the injury or damage does not occur in the course of travel or transportation to or from any place not included in a. above; or c. All parts of the world if. (1) The injury or damage arises out of: (a) Goods or products made or sold by you in the territory described in a. above; or (b) The activities of a person whose home is in the territory described in a. above, but is away for a short time on your business; and (2) The insured's responsibility to pay dam- ages is determined in a suit on the merits, in the territory described in a. above or in a settlement we agree to. 5. Employee includes a leased worker. Employee does not include a temporary worker. Page 12 of 16 b. Premium shown in this Coverage Part as ad- vance premium is a deposit premium only. At the close of each audit period we will compute the earned premium for that period. Audit premiums are due and payable on no- tice to the first Flamed Insured. If the sum of the advance and audit premiums paid for the policy period is greater than the earned premium, we will return the excess to the first Named Insured. c. The first Named Insured must keep records of the information we need for premium computation, and send us copies at such times as we may request. 6. Representations By accepting this policy, you agree: a. The statements in the Declarations are accu- rate and complete; b. Those statements are based upon representa- tions you made to us; and U_ c. We have issued this policy in reliance upon o your representations. 0 O 7. Separation of Insureds 0 Except with respect to the Limits of Insurance, N and any rights or duties specifically assigned in this Coverage Part to the first Named Insured, this in- surance applies: a. As if each Named Insured were the only Named Insured; and b. Separately to each insured against whom claim is made or suit is brought. 8. Transfer of Rights of Recovery Against Others to D En Us En z Z If the insured has rights to recover all or part of any payment we have made under this Coverage Part, those rights are transferred to us. The in- sured must do nothing after loss to impair them. W At our request, the insured will bring suit or N transfer those rights to us and help us enforce a them. U U W 9. When We Do Not Renew If we decide not to renew this Coverage Part, we will mail or deliver to the first Named Insured CG0001 7-98 NCopyright, M M O O Insurance Services Office, Inc., 1997 shown in the Declarations written notice of the nonrenewal not less than 30 days before the expi- ration date. If notice is mailed, proof of mailing will be suffi- cient proof of notice. Section V - Definitions 1. Advertisement means a notice that is broadcast or published to the general public or specific market segments about your goods, products or services for the purpose of attracting customers or sup- porters. 2. Auto means a land motor vehicle, trailer or semi- trailer designed for travel on public roads, includ- ing any attached machinery or equipment. But auto does not include mobile equipment. 3. Bodily injury means bodily injury, sickness or dis- ease sustained by a person, including death result- ing from any of these at any time. 4. Coverage territory means: a. The United States of America (including its territories and possessions), Puerto Rico and Canada; b. International waters or airspace, provided the injury or damage does not occur in the course of travel or transportation to or from any place not included in a. above; or c. All parts of the world if. (1) The injury or damage arises out of: (a) Goods or products made or sold by you in the territory described in a. above; or (b) The activities of a person whose home is in the territory described in a. above, but is away for a short time on your business; and (2) The insured's responsibility to pay dam- ages is determined in a suit on the merits, in the territory described in a. above or in a settlement we agree to. 5. Employee includes a leased worker. Employee does not include a temporary worker. Page 12 of 16 6. Executive officer means a person holding any of the officer positions created by your charter, constitution, by-laws or any other similar govern- ing document. 7. Hostile fire means one which becomes uncontrol- lable or breaks out from where it was intended to be. 8. Impaired property means tangible property, other than your product or your work, that cannot be used or is less useful because: a. It incorporates your product or your work that is known or thought to be defective, deficient, inadequate or dangerous; or b. You have failed to fulfill the terms of a con- tract or agreement; if such property can be restored to use by: a. The repair, replacement, adjustment or re- moval of your product or your work; or b. Your fulfilling the terms of the contract or agreement. 9. Insured contract means: a. A contract for a lease of premises. However, that portion of the contract for a lease of premises that indemnifies any person or or- ganization for damage by fire to premises while rented to you or temporarily occupied by you with permission of the owner is not an insured contract; b. A sidetrack agreement; c. Any easement or license agreement, except in connection with construction or demolition operations on or within 50 feet of a railroad; d. An obligation, as required by ordinance, to indemnify a municipality, except in con- nection with work for a municipality; e. An elevator maintenance agreement; f. That part of any other contract or agreement pertaining to your business (including an in- demnification of a municipality in connection with work performed for a municipality) un- der which you assume the tort liability of an- other party to pay for bodily injury or CG0001 7.98 Copyright, Insurance Services Office, Inc., 1997 property damage to a third person or organ- ization. Tort liability means a liability that would be imposed by law in the absence of any contract or agreement. Paragraph f. does not include that part of any contract or agreement: (1) That indemnifies a railroad for bodily in- jury or property damage arising out of construction or demolition operations, within 50 feet of any railroad property and affecting any railroad bridge or tres- tle, tracks, road -beds, tunnel, underpass or crossing; (2) That indemnifies an architect, engineer or surveyor for injury or damage arising out of: (a) Preparing, approving or failing to prepare or approve maps, shop drawings, opinions, reports, surveys, field orders, change orders, or draw- ings and specifications; or (b) Giving directions or instructions, or failing to give them, if that is the primary cause of the injury or dam- age; (3) Under which the insured, if an architect, engineer or surveyor, assumes liability for an injury or damage arising out of the insured's rendering or failure to render professional services, including those listed in (2) above and supervisory, in- spection, architectural or engineering ac- tivities. 10. Leased worker means a person leased to you by a labor leasing firm under an agreement between you and the labor leasing firm, to perform duties re- lated to the conduct of your business. Leased worker does not include a temporary worker. 11. Loading or unloading means the handling of pro- perty; a. After it is moved from the place where it is accepted for movement into or onto an air- craft, watercraft or auto; b. While it is in or on an aircraft, watercraft or auto; or Page 13 of 16 C. While it is being moved from an aircraft, wa- tercraft or auto to the place where it is finally delivered; but loading or unloading does not include the movement of property by means of a mechanical device, other than a hand truck, that is not at- tached to the aircraft, watercraft or auto. 12. Mobile equipment means any of the following types of land vehicles, including any attached ma- chinery or equipment: a. Bulldozers, farm machinery, forklifts and other vehicles designed for use principally off public roads; b. Vehicles maintained for use solely on or next to premises you own or rent; c. Vehicles that travel on crawler treads; d. Vehicles, whether self-propelled or not, maintained primarily to provide mobility to permanently mounted: LL (1) Power cranes, shovels, loaders, diggers or drills; or (2) Road construction or resurfacing equip- ment such as graders, scrapers or rollers; e. Vehicles not described in a., b., c. or d. above that are not self-propelled and are maintained primarily to provide mobility to permanently attached equipment of the following types: (1) Air compressors, pumps and generators, including spraying, welding, building cle- aning, geophysical exploration, lighting and well servicing equipment; or (2) Cherry pickers and similar devices used to raise or lower workers; z f. Vehicles not described in a., b., c. or d. above maintained primarily for purposes other than the transportation of persons or cargo. LL However, self-propelled vehicles with the fol - 1 -4 lowing types of permanently attached equip - a ment are not mobile equipment but will be Q considered autos: W 0 (1) Equipment designed primarily for: N (a) Snow removal; CG0001 7-98 NCopyright, Insurance Services Office, Inc., 1997 Cl) Cl) O O (b) Road maintenance but not con- struction or resurfacing; or (c) Street cleaning; (2) Cherry pickers and similar devices mounted on automobile or truck chassis and used to raise or lower workers; and (3) Air compressors, pumps and generators, including spraying, welding, building cleaning, geophysical exploration, light- ing and well servicing equipment. 13. Occurrence means an accident, including contin- uous or repeated exposure to substantially the same general harmful conditions. 14. Personal and advertising injury means injury, in- cluding consequential bodily injury, arising out of one or more of the following offenses: a. False arrest, detention or imprisonment; b. Malicious prosecution; c. The wrongful eviction from, wrongful entry into, or invasion of the right of private occu- pancy of a room, dwelling or premises that a person occupies, committed by or on behalf of its owner, landlord or lessor; d. Oral or written publication of material that slanders or libels a person or organization or disparages a person's or organization's goods, products or services; e. Oral or written publication of material that violates a person's right of privacy; f. The use of another's advertising idea in your advertisement; or g. Infringing upon another's copyright, trade dress or slogan in your advertisement. 15. Pollutants means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned or reclaimed. 16. Products -completed operations hazard: a. Includes all bodily injury and property damage occurring away from premises you own or Page 14 of 16 rent and arising out of your product or your work except: (1) Products that are still in your physical possession; or (2) Work that has not yet been completed or abandoned. However, your work will be deemed completed at the earliest of the following times: 18. (a) When all of the work called for in your contract has been completed. (b) When all of the work to be done at the job site has been completed if your contract calls for work at more than one job site. (c) When that part of the work done at a job site has been put to its intended use by any person or or- ganization other than another con- tractor or subcontractor working on the same project. Work that may need service, mainte- nance, correction, repair or replacement, but which is otherwise complete, will be treated as completed. b. Does not include bodily injury or property damage arising out of: (1) The transportation of property, unless the injury or damage arises out of a con- dition in or on a vehicle not owned or operated by you, and that condition was created by the loading or unloading of that vehicle by any insured; (2) The existence of tools, uninstalled equipment or abandoned or unused ma- terials; or (3) Products or operations for which the classification, listed in the Declarations or in a policy schedule, states that pro- ducts -completed operations are subject to the General Aggregate Limit. 17. Property damage means: a. Physical injury to tangible property, including all resulting loss of use of that property. All such loss of use shall be deemed to occur at the time of the physical injury that caused it; or b. Loss of use of tangible property that is not physically injured. All such loss of use shall be deemed to occur at the time of the occur- rence that caused it. Suit means a civil proceeding in which damages because of bodily injury, property damage or personal and advertising injury to which this in- surance applies are alleged. Suit includes: a. An arbitration proceeding in which such damages are claimed and to which the insured must submit or does submit with our consent; or b. Any other alternative dispute resolution pro- ceeding in which such damages are claimed and to which the insured submits with our consent. 19. Temporary worker means a person who is fur- nished to you to substitute for a permanent em- ployee on leave or to meet seasonal or short-term workload conditions. 20. Your product means: a. Any goods or products, other than real prop- erty, manufactured, sold, handled, distributed or disposed of by; (1) You; (2) Others trading under your name; or (3) A person or organization whose business or assets you have acquired; and b. Containers (other than vehicles), materials, parts or equipment furnished in connection with such goods or products. Your product includes: a. Warranties or representations made at any time with respect to the fitness, quality, dura- bility, performance or use of your product; and b. The providing of or failure to provide warn- ings or instructions. CG0001 7-98 Copyright, Insurance Services Office, Inc., 1997 Page 15 of 16 N x 7 N 2 Your product does not include vending machines or other property rented to or located for the use of others but not sold. 21. Your work means: a. Work or operations pelf'ormed by you or on your behalf; and b. Materials, parts or equipment furnished in connection with such work or operations. 1 T Your work includes: a. Warranties or representations made at any time with respect to the fitness, quality, dura- bility, performance or use of your work; and b. The providing of or failure to provide warn- ings or instructions. CG0001 7-98 M Copyright, Insurance Services Office, Inc., 1997 Page 16 of 16 M M O O Amendment of Insuring Agreement Known Injury or Damage CG 00 57 09 99 Policy Amendment(s) Commercial General Liability This endorsement modifies insurance provided under the following: Commercial General Liability Coverage Part (Occurrence Version) Paragraph 1. Insuring Agreement of Section I Coverage (1) The bodily injury or property damage is A - Bodily Injury And Property Damage Liability is caused by an occurrence that takes place replaced by the following: in the coverage territory; 1. Insuring Agreement (2) The bodily injury or property damage a. We will pay those sums that the insured be- occurs during the policy period; and comes legally obligated to pay as damages (3) Prior to the policy period, no insured because of bodily injury or property damage listed under Paragraph 1. of Section 11 - to which this insurance applies. We have the Who is an Insured and no employee au - tight and duty to defend the insured against thorized by you to give or receive notice any suit seeking those damages. However, we will have no duty to defend the insured of an occurrence or claim, knew that the against any suit seeking damages for bodily bodily injury or property damage had oc- injury or property damage to which this in- cuffed, in whole or in part. If such a surance does not apply. We may, at our dis- listed insured or authorized employee cretion, investigate any occurrence and settle knew, prior to the policy period, that the any claim or suit that may result. But: bodily injury or property damage oc- cuffed, then any continuation, change or (1) The amount we will pay for damages is resumption of such bodily injury or limited as described in Section III - Lim- property damage during or after the pol- its of Insurance; and icy period will be deemed to have been (2) Our right and duty to defend end when known prior to the policy period. we have used up the applicable limit of insurance in the payment of judgments c. Bodily injury or property damage which oc- or settlements under Coverages A or B curs during the policy period and was not, or medical expenses under Coverage C. prior to the policy period, known to have oc- curred by any insured listed under Paragraph No other obligation or liability to pay sums 1. of Section 11 -Who is An Insured or any or perform acts or services is covered unless employee authorized by you to give or receive explicitly provided for under Supplementary notice of an occurrence or claim, includes any Payments - Coverages A and B. continuation, change or resumption of that b. This insurance applies to bodily injury and bodily injury or property damage after the end property damage only if- of the policy period. This Form must be attached to Change Endorsement when issued after the policy is written. One of the Fireman's Fund Insurance Companies as named in the policy Se retary CGO057 9-99 Copyright, Insurance Services Office, Inc., 1998 Page I of 2 0 0 0 0 0 0 0 N n W D W Z d. Bodily injury or property damage will be deemed to have been known to have occurred at the earliest time when any insured listed under Paragraph 1. of Section 11 - Who is An Insured or any employee authorized by you to give or receive notice of an occurrence or claim: (1) Reports all, or any part, of the bodily in- jury or property damage to us or any other insurer; N U CGO057 9-99 MCopyright, Insurance Services Office, Inc., 1998 Cl) Cl) O O (2) Receives a written or verbal demand or claim for damages because of the bodily injury or property damage; or (3) Becomes aware by any other means that bodily injury or property damage has oc- curred or has begun to occur. e. Damages because of bodily injury include damages claimed by any person or organiza- tion for care, loss of services or death resulting at any time from the bodily injury. Page 2 of 2 Additional Insured - Managers or Lessors of Premises - CG 20 11 11 85 Policy Amendment General Liability Insured Policy Number Producer Effective Date Schedule Designation of Premises (Part leased to you) Name of Person or Organization (Additional Insured) (If no entry appears above, information required to complete this Endorsement will be shown in the Declarations as applicable to this Endorsement.) Who is an Insured (Section II) is amended to include as an insured the person or organization shown in the Schedule but only with respect to liability arising out of the ownership, maintenance or use of that part of the premises leased to you and shown in the Schedule and subject to the following additional exclusions: This insurance does not apply to: 1. Any occurrence which takes place after you cease to be a tenant in that premises. 2. Structural alterations, new construction or demo- lition operations performed by or on behalf of the person or organization shown in the Schedule. This Form must be attached to Change Endorsement when issued after the policy is written. One of the Fireman's Fund Insurance Companies as named in the policy V, X CG2011 11-85 Contains Copyrighted Material of Insurance Services Office, Inc., 1984 INLAND MARINE Inland Marine iM POLICY NUMBER 8 02 MZG 07186870 NAMED INSURED DOVER SHORES PET CARE CENTER PORTFOLIO POLICY (R) INLAND MARINE DECLARATIONS INSURANCE IS PROVIDED ONLY FOR THOSE COVERAGES, LIMITS OF INSURANCE OR LIABILITY OR AMOUNTS OF INSURANCE AND ENDORSEMENTS SHOWN BELOW. OTHER INLAND MARINE - VETERINARY ANIMAL COVERAGE FORM LOC 001 BLD 001 CM7222 12-96 LIMITS OF INSURANCE S 25,000 ANY ONE ANIMAL S 50,000 ANY ONE OCCURRENCE DEDUCTIBLE $ 0 O LL O w N w a U y LL w O O N IM - 1 U w W) co M M O O Conditions - 140559 12 86 Commercial Inland Marine Coverage Form A. General Conditions within the 48 contiguous states of the United States, the District of Columbia and within 1. Your name and address as the Named Insured the states of Alaska and Hawaii. shall be as specified in the General Declara- tions. 5. Concealment or Fraud 2. The Policy Period This policy is void if you have intentionally This policy applies only to loss or damage concealed or misrepresented any material fact that occurs during the policy period shown in or circumstance relating to this insurance. the General Declarations. The policy period 6. Abandonment begins and ends at 12:01 a.m., Standard Time, at your address shown in the General Decla- You may not abandon any covered property rations. But if this policy replaces a policy to us without our written consent. which expires at noon Standard Time on the effective date of this policy, then this policy 7. Civil Authority will not be effective until the policy being re- placed expires. In those states which require We will pay you for your covered property, if policy periods to begin and end at noon covered for the peril of fire, if an order by a Standard Time, this policy will begin and end civil authority causes your property to be at noon Standard Time. damaged or destroyed during a conflagration in order to retard such disaster. LL 3. The Declarations shows you which coverages oyou have purchased and the limits of insur- 8. Suit o ante that apply. You have only those cover- ages and amounts of insurance. If this You agree not to sue us or involve us in an- coverage applies only at specified locations, other action proceeding after 2 years have past they are shown in the Declarations. since you discovered the occurrence giving rise Cq to such action. If the state law applicable to B accepting this policy, you agree that: By p g p y, y g this coverage requires a different time period a. the statements in the Declarations are within which suit may be brought, this pro- your agreements and representations; vision is amended to conform to such law. b. that this policy is issued in reliance on the B. Loss Adjustment Provisions truth of such representations. 1. Your Duties After Loss 4. Territorial Limits If a loss occurs which this policy may cover, Unless a coverage form attached to this policy you must see that the following duties are zindicates otherwise, this policy covers only performed: o This Form must be attached to Change Endorsement when issued after the policy is written 2 io One of the Fireman's Fund Insurance Companies as named in the nolicv W N h LL W o Se etary President N U M 140559 12-86R Page 1 of 4 M M O O a. Notice of Loss You must tell us in writing as soon as practical after loss or damage has oc- curred to your covered property, or after any occurrence that may develop into a claim. You must also file with us or our agent, a detailed sworn proof of loss within ninety (90) days following the oc- currence. b. Protect Property You shall do what is reasonably neces- sary to minimize the loss or damage and to protect the covered property from any further loss or damage. Any expense in doing this shall be shared by you and us according to your and our interests. If you move the covered property to a safe place, that property will continue to be covered and we will reimburse you for the reasonable expenses for doing so. You must tell us as soon as practical that you have done this. 2. Examination Under Oath Before recovering from us for any loss, you shall, if we request: a. Permit us to inspect and appraise the damaged property before it is repaired or disposed of; b. be examined under oath; c. produce others for examination under oath; and, d. comply with any other reasonable re- quest we make. These requests are for the purpose of exam- ining the loss. They shall not mean that we admit liability for any loss or damage. 3. Valuation If a loss occurs, we will determine the value of the lost or damaged property at its actual cash value, with proper deduction for depre- ciation, as of the time of loss or damage. We will not pay you more than it would cost to repair or replace the covered property with material of like kind and quality. We will not pay you for any part of the loss or damage that you have collected from any other source. 4. Settlement of Loss We will settle substantiated claims within 30 days of our receipt of your statement of loss. We will supply you with the necessary forms. 5. No Benefit to Bailee No person or organization, other than you, that has custody of the covered property, shall benefit from this insurance. 6. Subrogation If any person or organization to whom we make payment under this policy has rights to recover damages from another, those rights are transferred to us. That person or organ- ization must do everything necessary to aid us in any recovery and to protect our rights. If that person or organization does anything to impair our rights after a loss, we will not have to pay the loss. 7. Loss Clause If you have a loss other than a total loss, we will not reduce the amount of your coverage. However, if you have a total loss, the amount of your coverage shall be reduced by the amount of the item that was lost or destroyed. We will return to you the unearned premium from the date of loss to the end of the current policy period or rating period for which the premium was charged, whichever comes first. You may also request us to apply that un- earned premium to the premium due on any item(s) replacing that which was lost or de- stroyed and for which we have paid a claim. 8. Pair, Set or Parts If you have a loss to your covered property that is part of a pair or set, we will pay you only for a reasonable and fair proportion of the total value of the pair or set. We will not pay on the basis of a loss to the entire pair or set. If you have a loss to covered property that is a piece or pieces which belong to something that when complete consists of several parts, we will pay only for the part(s) that are lost or damaged. 140559 12-86R Page 2 of 4 9. Appraisal If you and we fail to agree on the amount of loss, either one can ask that the amount of loss be established by appraisal. To start the appraisal process either you or we must make the request in writing to the other. Each must then choose a competent, independent ap- praiser and give the name and address of that appraiser to the other. This must be done within 30 days after the written request for appraisal is received. The two appraisers must then choose a com- petent and impartial umpire. If they do not agree on an umpire within 15 days, either you or we may have an umpire selected by a court located in the same state as the covered property. The appraisers will then set the amount of the loss. A copy of their report will be given to you and to us. The amount they agree upon will be the amount of loss. If the appraisers fail to agree within a reason- able period of time, they will give the umpire LL a statement of their differences. A written agreement signed by any two of the three will set the amount of the loss. You will pay your appraiser and we will pay ours. The umpire's fee and other appraisal expenses will be shared M equally by you and us. N x If we submit to an appraisal, we will still re- tain our right to deny the claim. 10. Labeled Goods If covered property bearing labels, packaging or wrappers is lost or damaged, we will pay you an amount sufficient to replace those la- bels, packaging or wrappers. N11. Other Insurance Z The coverage provided by this policy shall apply only as excess insurance over any other valid and collectible insurance or coverage that applies to the covered property. LL N 12. Impairment of Recovery Rights Ln a, LL If you do anything after a loss that impairs W or precludes your right to recover from any other party who may be liable for the loss or N damage, we will not pay you. We may also U refuse to pay if you make any settlement or W 14055912-868 M M O O agreement on a loss without our written con- sent. 13. Recovery If we recover any part of a loss from another party, after we deduct the expenses of making the recovery we will share the recovery with you. Your share will be the proportion that your share of the loss bears to the total amount of the loss. 14. Loss Payee If a loss payee is named in the Declarations, we will pay you and the loss payee, as the in- terest of each may appear. C. Additional Losses We Do Not Cover In addition to Causes of Loss We Do Not Cover under this policy, the Governmental Action and Nuclear Hazard Exclusions that follow will apply to coverage under this policy regardless of other governmental action or war risk exclusions or clauses, or nuclear hazard or nuclear exclusions or clauses may appear in this policy. If however, the other clauses, if any, specifically assume these risks, then such other governmental action or war risk exclusions or clauses, or nuclear hazard or nuclear exclusions or clauses shall apply and the following clauses will not apply. Government Action. We do not cover loss or damage caused by or resulting from seizure or destruction of property by order of governmental authority. But we will pay for acts of destruction ordered by governmental authority and taken at the time of a fire to prevent its spread if the fire is covered under this policy. 2. Nuclear Hazard We do not cover loss or damage caused by any weapon employing atomic fission or fusion or nuclear reaction or radiation, or ra- dioactive contamination, however caused. But we will pay for direct loss or damage caused by resulting fire if the fire is covered under this policy. 3. War and Military Action We do not cover loss or damage caused by or resulting from: Page 3 of 4 a. War, including undeclared or civil war; b. Warlike action by a military force, in- cluding action in hindering or defending against an actual or expected attack, by any government, sovereign or other au- thority using military personnel or other agents; or, c. Insurrection, rebellion, revolution, usurped power or action taken by gov- B ernmental authority in hindering or de- fending against any of these. 4. Illegal Transport or Trade We do not cover loss or damage caused by or resulting from illegal transportation or trade. D. Definitions Throughout this policy the terms you and your mean the person or organization shown in the l General Declarations or coverage Declarations as the Named Insured. You and your includes part- ners acting as such when the Named Insured is a partnership and executive officers, directors and stockholders acting as such when the Named In- sured is a corporation. We, us and our mean the Company issuing this policy. The term policy means this Property Floater and the coverage forms and endorsements attached to it. Special State Provisions KANSAS. Suit. If this policy is issued in the State of Kansas, the words five (5) years are sub- stituted for the words twelve (12) months in Con- dition A.8. TEXAS. Notice of Loss and Suit. If this supple- mental policy is issued in the State of Texas, the words ninety-one (91) are substituted for the word ninety (90) in Condition B. La. and the words two (2) years and one (1) day are substituted for the words twelve (12) months in Condition A.8. 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 representative of the Company. 140559 12-86R Page 4 of 4 LL 0 0 0 0 a N x z z Debris and Pollutant Removal Policy Amendment - 140866 02 86 Policy Amendment Your policy is amended as follows: The following Extension of Coverage is added. If your policy does not provide coverage for debris removal, this Extension of Coverage adds debris removal coverage. If your policy does provide de- bris removal coverage, any other debris removal coverage provided by your policy is deleted and replaced by this Extension of Coverage. Debris Removal. We will pay your reasonable cost to remove the debris of insured property caused by or resulting from an insured peril which occurs during the policy period. This coverage only applies if no later than 180 days from the date of loss or the end of the policy pe- riod, whichever comes first, you: (1) discover the loss, and (2) report the cost to us in writing. We will pay up to 25% of the sum of: (1) the direct physical loss otherwise payable un- der the policy, and (2) the deductible. Payments under this Debris Removal coverage will not increase the Limit of Liability applicable to the insured property. Debris Removal Additional Limit. If your cost for debris removal exceeds the amount we pay under the Limit of Liability applicable to the insured property, we will pay up to the lesser of: (1) 10% of the applicable Limit of Liability; or (2) $100,000 as an Additional Limit of Liability for debris re- moval. We will not pay: (1) the cost to extract POLLUTANTS from land or water (except as provided under Pollutant Removal below); (2) the cost to repair, replace or restore property damaged or destroyed by debris removal; (3) the cost to remove debris from any location used for handling, treatment, storage or dis- posal of waste unless the policy is extended to cover property at that specifically identified location. 2. The following Extension of Coverage is added: Pollutant Removal. We will pay your reasonable cost to extract POLLUTANTS from land or wa- ter. The release, discharge or dispersal of the POLLUTANTS must result from an insured loss and must occur during the policy period. This coverage only applies if no later than 180 days from the date of loss or from the end of the policy period, whichever comes first, you: (1) discover the loss, and (2) report the cost to us in writing. The most we will pay in any one loss is the lesser of: (1) 10% of the applicable Limit of Liability; or (2) $10,000 Under this Extension of Coverage, the most we will pay for all claims for loss which occurs at any one location during the policy period is $10,000. This Form must be attached to Change Endorsement when issued after the policy is written. One of the Fireman's Fund Insurance Companies as named in the policy 95A"W'C' Se etary _N U W 140866 2-86R Page 1 of 2 M M O O r � r,, If this policy is written for a term of more than one year, we will apply this limit separately to each consecutive year of the policy period. We will not pay: (1) the cost to repair, replace or restore property damaged or destroyed by extraction of POLLUTANTS; (2) the cost to extract POLLUTANTS from land or water: (a) at any location used for the handling, treatment, storage or disposal of waste unless the policy has been specifically extended to cover property at that lo- cation; (b) at any location if the POLLUTANTS are released, dispersed or discharged from a location which is used for the handling, treatment, storage or disposal of waste unless the policy has been specifically extended to cover property at that lo- cation; (c) at any location if the POLLUTANTS arise out of or are a consequence of nu- clear reaction or radiation, or radioactive contamination. 4 The Coinsurance provision, if any, in this policy does not apply to this Extension of Coverage. 3. The following exclusions are added: Ordinance or Law. We do not cover loss or damage caused by or re- sulting from the enforcement of any ordinance or law: (1) regulating the use or repair of any property; or (2) requiring the tearing down or removal of any property, including the cost of removing its debris. Pollutants. We do not cover loss or damage caused by or re- sulting from the release, discharge or dispersal of POLLUTANTS unless the release, discharge or dispersal is caused by one of the perils listed below applying to the insured property. But we do cover loss caused by any of the following perils which results from the release, discharge or dispersal of POLLUTANTS. Perils: Fire or Lightning; Explosion; Aircraft or Vehicles; Windstorm or Hail; Riot or Civil Commotion; Leakage from Fire Extinguishing Equipment; Volcanic Action; Vandalism or Malicious Mischief; Collision, upset or overturn of a transporting vehicle. For the purpose of this Endorsement, POLLUTANTS means any solid, liquid, gaseous or thermal irritant or contaminant including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recy- cled, reconditioned or reclaimed. 140866 2-86R Page 2 of 2 0 LL m w N N a C9 LL W CD 0 1 T Veterinary Animal Coverage Form - CM 72 22 12 96 Policy Amendment(s) Commercial Inland Marine Various provisions in this Coverage Part restrict cover- age. Read the entire Coverage Part carefully to deter- mine rights, duties and what is and is not covered. Throughout this Coverage Part the words you and your refer to the Named Insured shown in the Decla- rations. The words we, us and our refer to the Com- pany providing this insurance. Some words and phrases that appear in bold face have special meaning. Refer to Definitions. I. Coverage We will pay for the loss to Covered Animals caused by or resulting from a Cause of Loss We Cover while the Covered Animals are in your care, custody or control. A. Covered Animals Covered Animals, as used in this Coverage Part, means animals belonging to others while: 1. In your care, custody or control for treatment, grooming, boarding or breed - mg; 2. In transit in or on vehicles you or your employees own, lease or operate. B. Animals Not Covered We do not cover any of the following, unless specifically identified in the Declarations or by endorsement to this Coverage Part: I. Animals rented or leased to others while away from your premises; 2. Animals held for sale, lease or rental; 3. Animals you own. II. Causes of Loss We Cover We will pay for the loss of Covered Animals caused by or resulting from any external cause ex- cept those causes excluded under Causes of Loss We Do Not Cover or which are excluded elsewhere in this policy. III. Causes of Loss We Do Not Cover We do not cover loss or expense caused directly or indirectly by any of the following. Such loss or expenses is excluded regardless of any other cause or event that contributes concurrently or in any sequence to the loss. A. Dishonest or criminal acts by you, any of your partners, employees, directors, trustees, authorized representatives or anyone to whom you entrust the Covered Animals for any purpose other than a carrier or other bailee for hire: 1. Acting alone or in collusion with others; or 2. Whether or not occurring during the hours of employment. B. Delay, loss of use, loss of market, or any other consequential or remote loss of any kind; C. Any treatment or process, or rendering or failure to render professional services; D. Conditions, including but not limited to in- jury or illness, which existed prior to the Covered Animal coming into your care, cus- tody or control; This Form must be attached to Change Endorsement when issued after the policy is written. One of the Fireman's Fund Insurance Companies as named in the policy Se etary CM7222 12-96 Page 1 of 4 M ri 0 0 E. Any disease or sickness, or death by natural causes; F. The seizure or destruction of Covered Ani- mals by order of governmental authority. But we will pay for acts of destruction ordered by governmental authority and taken at the time of a fire to prevent its spread if the fire is covered under this Coverage Part. G. Nuclear reaction or radiation, or radioactive contamination, however caused. But we will pay for direct loss or damage caused by re- sulting fire if the fire is covered under this Coverage Part. H. War and Military Action 1. War, including undeclared or civil war; 2. Warlike action by a military force, in- cluding action in hindering or defending against an actual or expected attack, by any government, sovereign or other au- thority using military personnel or other agents; or 3. Insurrection, rebellion, revolution, usurped power or action taken by gov- ernmental authority in hindering or de- fending against any of these. IV. Limits of Insurance The most we will pay for loss to any one Covered Animal is the Limit of Insurance shown in the Declarations that apply to this Coverage Part for Any One Animal. The most we will pay in any one occurrence, regardless of the number of Cov- ered Animals involved in the loss, is the Limit of Insurance shown in the Declarations that apply to this Coverage Part for Any One Occurrence. Payment under the Additional Coverages are in addition to the applicable Limit of Insurance. V. Deductible We will not pay for loss in any one occurrence until the amount of loss exceeds the Deductible shown in the Declarations that apply to this Cov- erage Part. We will then pay the amount of loss in excess of the Deductible, up to the applicable Limit of Insurance. If more than one deductible is applicable under this Coverage Part, we will only apply the single highest Deductible that is applicable. We have the right, but not the duty, to pay any claim in full, including the amount of your deductible in order to settle a claim. If we elect to pay any part of your deductible, you agree to re- imburse us for the full amount of such deductible. Upon receipt of a bill for deductible amounts, you will pay us promptly. If you fail to pay us promptly, we may cancel this policy in accordance with provisions of statute. VI. Additional Coverages A. Removal If it is necessary to move Covered Animals from the place you conduct your business to preserve the Covered Animals from loss by a Cause of Loss We Cover, we will pay your reasonable expenses to move the Covered Animals to a safe location. The most we will pay in any one occurrence for moving the Covered Animals to a safe lo- cation to avoid loss is $1,000, regardless of how many animals are in your care, custody or control. B. Uncollectible Charges In the event of loss to Covered Animals caused by or resulting from a Cause of Loss We Cover, we will also pay your accrued charges not collected from the customer as a result of the loss. There shall be no recovery for accrued charges which were more than ninety (90) days delinquent from the end of the month in which payment was due. The most we will pay for accrued charges due from any one customer is $250. The most we will pay for accrued charges in any one occurrence is $1,000. We will not pay for uncollectible charges on any claim for which the loss to the Covered Animal is less than the deductible that applies to such loss. C. Advertising Expense and Rewards We will pay the cost of advertising in news- papers to aid in the recovery of Covered Ani- mals which are lost or stolen while in your CM7222 12-96 Page 2 of 4 care, custody or control. We will also pay a The most we will pay in any one occur- reward to the person or persons who provide rence for damages under this Additional information leading to the recovery of the Coverage is $7,500. This is the most we Covered Animals lost or stolen. will pay regardless of the number of: The most we will pay in any one occurrence a. Insureds; for coverage provided by this Additional Coverage is $1,000. This is the most we will b. Covered Animals involved in the pay for advertising expense and rewards com- loss; bined, regardless of the number of Covered Animals lost or stolen. C. Claims made or suits brought; or D. Additional Expense d. Persons or organizations making claims or bringing suits. 1. We will pay the reasonable expenses you The most we will pay for damages under incur for: this Additional Coverage is any one pol- icy period, regardless of the number of and occurrences, is $15,000. b. Putting a Covered Animal to death 2. Defense when such recovery or death is made We will have the right and duty to defend necessary by a Cause of Loss We Cover. any suit against you seeking damages for loss to Covered Animals caused by or 2. This Additional Coverage does not apply resulting from an occurrence, even if any to any: of the allegations of the suit are not true. o We may investigate or negotiate and set- a. Expense for advertising; or tle any claim or suit as we consider ap- propriate. b. Rewards offered. co After we have paid the Limit of Insur- 3. The most we will pay in any one loss ance that applies to damages under Sec- under this Additional Coverage, regard- tion 1. of this Additional Coverage in a less of the number of Covered Animals settlement or pursuant to a judgment, in your care, custody or control, is we have no duty: $2,500. The most we will pay under this Additional Coverage in any one policy a. To pay any other sums as damages; period, regardless of the number of oc- or currences, is $5,000. b. To defend any suit, including the E. Legal Liability Damages one which has been settled or on which a judgment has been paid. Z 1. Damages In addition to the Limit of Insurance that We will pay all sums you become legally applies to damages under Section 1. of obligated to pay as damages because of this Additional Coverage, we will pay: LLyour liability for loss to Covered Animals a. Expenses we incur to adjust claims caused by or resulting from a Cause of or suits; N Loss We Cover. a b. Costs, including all expenses of liti- Our obligation for payment of damages ,taxed against you in any suit under this Additional Coverage W e does not we de we defend; o apply to your liability for the actual value of the Covered Animal as insured else- C. All interest which accrues after the _N U where in this Coverage Part. entry of a judgment in a suit we Ui CM7222 12-96 M M O O Page 3 of 4 defend. Our duty to pay interest ends when we pay that part of the judgment which does not exceed our Limits of Insurance specified in Sec- tion 1. of this Additional Coverage. d. Premiums on appeal bonds: (1) In any suit we defend; (2) To release attachments in any suit we defend. But we will not pay the premiums for bond amounts greater than the applicable Limits of Insurance spec- ified in Section 1. of this Additional Coverage, and we have no obli- gation to apply for or furnish any bonds. e. Reasonable expenses you incur at our request to help us investigate or defend against a claim or suit. VII. Valuation If a loss occurs, we will determine the value of the Covered Animal as the cost to replace the Covered Animal with another animal of the same quality and breed. However, in no event will we pay more than the least of the following amounts: A. The Limit of Insurance that applies to the Covered Animal; B. The cost to replace the Covered Animal with another animal; 1. Of comparable quality; and 2. Of the same breed; or C. The amount you actually spend that is neces- sary to treat or replace the Covered Animal. VIII. Privilege to Adjust with Owner We may adjust losses with the owners of the Covered Animals if other than you. If we pay the owners, such payments will satisfy your claims against us for the owner's animal. IX. Liberalization If we adopt any revision that would broaden the coverage under this Coverage Part without addi- tional premium within 45 days prior to or during the policy period, the broadened coverage will im- mediately apply to this Coverage Part. X. Definitions A. Loss means injury, escape, or death of Cov- ered Animals, or death of Covered Animals made immediately necessary due to a Cause of Loss We Cover. B. Occurrence means a loss to Covered Animals which occurs during the policy period and is caused by one or more Causes of Loss We Cover. CM7222 12-96 Page 4 of 4 BUSINESS AUTO Business Auto AU POLICY NUMBER 8 Hl MZG 07186870 NAMED INSURED DOVER SHORES PET CARE CENTER PORTFOLIO POLICY (R) BUSINESS AUTO POLICY DECLARATIONS INSURANCE IS PROVIDED ONLY FOR THOSE COVERAGES, LIMITS OF LIABILITY AND ENDORSEMENTS SHOWN BELOW. ITEM TWO SCHEDULE OF COVERAGES AND COVERED AUTOS (SEE SUPPLEMENTARY STATE ENDORSEMENTS WHERE APPLICABLE) COVERAGES LIMITS COMBINED BODILY INJURY AND $ 1,000,000 EACH ACCIDENT PROPERTY DAMAGE LIABILITY COVERAGE COVERAGES SYMBOLS — COVERED AUTO DESCRIPTION (SEE SECTION I, PARAGRAPH A AND B) LIABILITY COVERAGE 8. HIRED AUTOS ONLY 9. NONOWNED AUTOS ONLY ENDORSEMENTS ONLY THOSE ENDORSEMENTS SHOWN BELOW APPLY 0 o EXPLANATION OF PREMIUM BASIS (CA 70 03 01 87) 0 S WHO IS AN INSURED AMENDED (CA 70 07 01 87) co N CHANGES IN BUSINESS AUTO AND TRUCKERS COVERAGE FORMS—INSURED CONTRACT (CA 00 29 12 88) z 0 0 W N THESE DECLARATIONS ARE ISSUED IN CONJUNCTION WITH AND ARE PART OF POLICY U w FORM CA0001-01-87 0 u AU — 1 w n v ro c� 0 0 W D U) z N U Business Auto Coverage Form - CA 00 01 01 87 Commercial Business Auto Coverage Form Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and what is and is not covered. Throughout this policy the words you and your refer to .the Named Insured shown in the Declarations. The words we, us and our refer to the Company providing this insurance. Other words and phrases that appear in boldface have special meaning. Refer to SECTION V - DEFI- NITIONS. Section I - Covered Autos ITEM TWO of the Declarations shows the autos that are covered autos for each of your coverages. The fol- lowing numerical symbols describe the autos that may be covered autos. The symbols entered next to a cov- erage on the Declarations designate the only autos that are covered autos. A. Description of Covered Auto Designation Symbols Symbol Description 1. = ANY AUTO. 2. = OWNED AUTOS ONLY. Only those autos you own (and for Liability Coverage any trailers you don't own while attached to power units you own). This includes those autos you acquire ownership of after the pol- icy begins. = OWNED PRIVATE PASSENGER AUTOS ONLY. Only the private passenger autos you own. This includes those private passenger autos you acquire ownership of af- ter the policy begins. 4. = OWNED AUTOS OTHER THAN PRI- VATE PASSENGER AUTOS ONLY. Only those autos, you own that are not of the pri- vate passenger type (and for Liability Cover- age any trailers you don't own while attached to power units you own). This includes those autos not of the private passenger type you acquire ownership of after the policy begins. 5. = OWNED AUTOS SUBJECT TO NO-FAULT. Only those autos you own that are required to have No -Fault benefits in the state where they are licensed or principally garaged. This includes those autos you ac- quire ownership of after the policy begins provided they are required to have No -Fault benefits in the state where they are licensed or principally garaged. 6. = OWNED AUTOS SUBJECT TO A COMPULSORY UNINSURED MOTOR- ISTS LAW. Only those autos you own that because of the law in the state where they are licensed or principally garaged are required to have and cannot reject Uninsured Motorists Coverage. This includes those autos you ac- quire ownership of after the policy begins provided they are subject to the same state uninsured motorists requirement. = SPECIFICALLY DESCRIBED AUTOS. Only those autos described in ITEM THREE of the Declarations (and for Liability Cover- age any trailers you don't own while attached to any power unit described in ITEM THREE). 8. = HIRED AUTOS ONLY. Only those autos you lease, hire, rent or borrow. This does not include any auto you lease, hire, rent, or borrow from any of your employees or partners or members of their households. This Form must be attached to Change Endorsement when issued after the policy is written. One of the Fireman's Fund Insurance Companies as named in the policy CA0001 1-87 Contains Copyrighted Material of Insurance Services Office, Inc., 1985 Page 1 of 10 [: 9. = NONOWNED AUTOS ONLY. Only those autos you do not own, lease, hire, rent or borrow that are used in connection with your business. This includes autos owned by your employees or partners or members of their households but only while used in your business or your personal affairs. Owned Autos You Acquire After the Policy Begins 1. If symbols 1, 2, 3, 4, 5, or 6 are entered next to a coverage in ITEM TWO of the Declara- tions, then you have coverage for autos that you acquire of the type described for the re- mainder of the policy period. 2. But, if symbol 7 is entered next to a coverage in ITEM TWO of the Declarations, an auto you acquire will be a covered auto for that coverage only if: a. We already cover all autos that you own for that coverage or it replaces an auto you previously owned that had that cov- erage; and b. You tell us within 30 days after you ac- quire it that you want us to cover it for that coverage. C. Certain Trailers, Mobile Equipment and Tempo- rary Substitute Autos If Liability Coverage is provided by this Coverage Form, the following types of vehicles are also covered autos for Liability Coverage: 1. Trailers with a load capacity of 2,000 pounds or less designed primarily for travel on public roads. 2. Mobile equipment while being carried or towed by a covered auto. 3. Any auto you do not own while used with the permission of its owner as a temporary sub- stitute for a covered auto you own that is out of service because of its: a. Breakdown; b. Repair; c. Servicing; d. Loss; or CA0001 1-87 Contains Copyrighted Material of Insurance Services Office, Inc., 1985 e. Destruction. Section II - Liability Coverage A. Coverage We will pay all sums an insured legally must pay as damages because of bodily injury or property damage to which this insurance applies, caused by an accident and resulting from the ownership, maintenance or use of a covered auto. We have the right and duty to defend any suit asking for these damages. However, we have no duty to defend suits for bodily injury or property damage not covered by this Coverage Form. We may investigate and settle any claim or suit as we consider appropriate. Our duty to defend or settle ends when the Liability Coverage Limit of Insur- ance has been exhausted by payment of judgments or settlements. 1. Who is an Insured The following are insureds: a. You for any covered auto. b. Anyone else while using with your per- mission a covered auto you own, hire or borrow except: (1) The owner or anyone else from whom you hire or borrow a covered auto. This exception does not apply if the covered auto is a trailer con- nected to a covered auto you own. (2) Your employee if the covered auto is owned by that employee or a member of his or her household. (3) Someone using a covered auto while he or she is working in a business of selling, servicing, repairing or parking autos unless that business is yours. (4) Anyone other than your employees, partners, a lessee or borrower or any of their employees, while moving property to or from a covered auto. (5) A partner of yours for a covered auto owned by him or her or a member of his or her household. Page 2 of 10 c. Anyone else who is not otherwise ex- cluded under paragraph b. above and is liable for the conduct of an insured but only to the extent of that liability. 2. Coverage Extensions a. Supplementary Payments. In addition to the Limit of Insurance, we will pay for the insured: (1) All expenses we incur. (2) Up to $250 for cost of bail bonds (including bonds for related traffic law violations) required because of an accident we cover. We do not have to furnish these bonds. (3) The cost of bonds to release attach- ments in any suit we defend, but only for bond amounts within our Limit of Insurance. (4) All reasonable expenses incurred by the insured at our request, including LL actual loss of earnings up to $100 a day because of time off from work. 0 0 (5) All costs taxed against the insured in any suit we defend. (6) All interest on the frill amount of x any judgment that accrues after en- try of the judgment in any suit we defend; but our duty to pay interest ends when we have paid, offered to pay or deposited in court the part of the judgment that is within our Limit of Insurance. b. Out of State Coverage Extensions. ? While a covered auto is away from the state where it is licensed we will: Increase the Limit of Insurance for Liability Coverage to meet the limits LL ID specified by a compulsory or fman- W cial responsibility law of the iuris- diction where the covered auto is being used. This extension does not M apply to the limit or limits specified by any law governing motor carriers N of passengers or property. U CA0001 1-87 UJ Contains Copyrighted Material of Insurance Services Office, Inc., 1985 M M O O (2) Provide the minimum amounts and types of other coverages, such as no-fault, required of out of state ve- hicles by the jurisdiction where the covered auto is being used. We will not pay anyone more than once for the same elements of loss because of these extensions. B. Exclusions This insurance does not apply to any of the fol- lowing: 1. Expected or Intended Injury Bodily injury or property damage expected or intended from the standpoint of the insured. 2. Contractual Liability assumed under any contract or agreement. But this exclusion does not apply to liability for damages: a. Assumed in a contract or agreement that is an insured contract; or b. That the insured would have in the ab- sence of the contract or agreement. 3. Workers' Compensation Any obligation for which the insured or the insured's insurer may be held liable under any workers' compensation, disability benefits or unemployment compensation law or any si- milar law. 4. Employee Indemnification and Employer's Liability Bodily injury to: a. An employee of the insured arising out of and in the course of employment by the insured; or b. The spouse, child, parent, brother or sis- ter of that employee as a consequence of paragraph a. above. This exclusion applies: Page 3 of 10 (1) Whether the insured may be liable as an employer or in any other ca- pacity; and (2) To any obligation to share damages with or repay someone else who must pay damages because of the injury. But this exclusion does not apply to bodily injury to domestic employees not entitled to workers' compensation bene- fits or to liability assumed by the insured under an insured contract. 5. Fellow Employee Bodily injury to any fellow employee of the insured arising out of and in the course of the fellow employee's employment. 6. Care, Custody or Control Property damage to property owned or transported by the insured or in the insured's care, custody or control. But this exclusion does not apply to liability assumed under a sidetrack agreement. 7. Handling of Property Bodily injury or property damage resulting from the handling of property: a. Before it is moved from the place where it is accepted by the insured for move- ment into or onto the covered auto; or b. After it is moved from the covered auto to the place where it is finally delivered by the insured. S. Movement of Property by Mechanical Device Bodily injury or property damage resulting from the movement of property by a me- chanical device (other than a hand truck) un- less the device is attached to the covered auto. 9. Operations Bodily injury or property damage arising out of the operations of any equipment listed in paragraphs 6.b. and 6.c. of the definition of mobile equipment. CA0001 1-87 Contains Copyrighted Material of Insurance Services Office, Inc., 1985 f F� 10. Completed Operations Bodily injury or property damage arising out of your work after that work has been com- pleted or abandoned. In this exclusion, your work means: a. Work or operations performed by you or on your behalf; and b. Materials, parts or equipment furnished in connection with such work or oper- ations. Your work includes warranties or repres- entations made at any time with respect to the fitness, quality, durability or per- formance of any of the items included in paragraphs a. or b. above. Your work will be deemed completed at the earliest of the following times: (1) When all of the work called for in your contract has been completed. (2) When all of the work to be done at the site has been completed if your contract calls for work at more than one site. (3) When that part of the work done at a job site has been put to its in- tended use by any person or organ- ization other than another contractor or subcontractor working on the same project. Work that may need service, mainte- nance, correction, repair or replacement, but which is otherwise complete, will be treated as completed. 11. Pollution a. Bodily injury or property damage arising out of the actual, alleged or threatened discharge, dispersal, release or escape of pollutants: (1) That are, or that are contained in any property that is: (a) Being transported or towed by, or handled for movement into, onto or from, the covered auto; Page 4 of 10 (b) Otherwise in the course of Paragraphs a(2) and a(3) of this exclusion transit by the insured; or do not apply if: (c) Being stored, disposed of, (1) the pollutants or any property in treated or processed in or upon which the pollutants are contained the covered auto; are upset, overturned or damaged as a result of the maintenance or use (2) Before the pollutants or any prop- of a covered auto; and erty in which the pollutants are contained are moved from the place (2) the discharge, dispersal, release or where they are accepted by the in- escape of the pollutants is caused sured for movement into or onto the directly by such upset, overturn or covered auto; or damage. (3) After the pollutants or any property 12. War in which the pollutants are con- Bodily injury or property damage due to war, tained are moved from the covered whether or not declared, or any act or condi- auto to the place where they are fi- tion incident to war. War includes civil war, nally delivered, disposed of or aban- insurrection, rebellion or revolution. This doned by the insured. exclusion applies only to liability assumed under a contract or agreement. b. Any loss, cost or expense arising out of any governmental direction or request C. Limit of Insurance that you test for, monitor, clean up, re- move, contain, treat, detoxify or neutral- Regardless of the number of covered autos, in - LL ize pollutants. sureds, premiums paid, claims made or vehicles involved in the accident, the most we will pay for o 0 Pollutants means any solid, liquid, gase- all damages resulting from any one accident is the g ous or thermal irritant or contaminant, Limit of Insurance for Liability Coverage shown - including smoke, vapor, soot, fumes, ac- in the Declarations. N ids, alkalis, chemicals and waste. Waste includes materials to be recycled, recon- All bodily injury and property damage resulting ditioned or reclaimed. from continuous or repeated exposure to substantially the same conditions will be consid- Paragraph a.(1)(c) does not apply to fu- ered as resulting from one accident. els, lubricants, fluids, exhaust gases or other similar pollutants that are needed Section III - Physical Damage Coverage for or result from the normal electrical, A. Coverage hydraulic or mechanical functioning of the covered auto or its parts, if: 1. we will pay for loss to a covered auto or its equipment under: z (1) The pollutants escape or are dis- charged, dispersed or released di- a. Comprehensive Coverage. From any rectly from an auto part designed by cause except: its manufacturer to hold, store, re- o ceive or dispose of such pollutants; (1) The covered auto's collision with and another object; or W [V a (2) The bodily injury or property dam - (2) The covered auto's overturn. ( age does not arise out of the opera- b. Specified Causes of Loss Coverage. o tion of any equipment listed in Caused by: paragraphs 6.b and 6.c of the defi- u nition of mobile equipment. (1) Fire, lightning or explosion; CA0001 1-87 LU CJ M co O O Contains Copyrighted Material of Insurance Services Office, Inc., 1985 Page 5 of 10 (2) Theft; (3) Windstorm, hail or earthquake; (4) Flood; (5) Mischief or vandalism; or (6) The sinking, burning, collision or derailment of any conveyance trans- porting the covered auto. of the policy's expiration, when the covered auto is returned to use or we pay for its loss B. Exclusions 1. We will not pay for loss caused by or resulting from any of the following. Such loss is ex- cluded regardless of any other cause or event that contributes concurrently or in any se- quence to the loss. CA0001 1-87 Contains Copyrighted Material of Insurance Services Office, Inc., 1985 Page 6 of 10 a. Nuclear Hazard. c. Collision Coverage. Caused by: (1) The explosion of any weapon em - (1) The covered auto's collision with ploying atomic fission of fusion; or another object; or (2) Nuclear reaction or radiation, or ra- (2) The covered auto's overturn. dioactive contamination, however caused. 2. Towing. b. War or Military Action. We will pay up to the limit shown in the Declarations for towing and labor costs in- (1) War, including undeclared or civil curred each time a covered auto of the private war; passenger type is disabled. However, the la- bor must be performed at the place of disa- (2) Warlike action by a military force, blement. including action in hindering or de- fending against an actual or expected 3. Glass Breakage - Hitting a Bird or Animal - attack, by any government, sover- Falling Objects or Missiles. eign or other authority using mili- tary personnel or other agents; or If you carry Comprehensive Coverage for the damaged covered auto, we will pay for the (3) Insurrection, rebellion, revolution, following under Comprehensive Coverage: usurped power or action taken by governmental authority in hindering a. Glass breakage; or defending against any of these. b. Loss caused by hitting a bird or animal; 2. Other Exclusions. and a. We will not pay for loss to any of the c. Loss caused by falling objects or missiles. following: However, you have the option of having glass (1) Tape decks or other sound re - breakage caused by a covered auto's collision producing equipment unless perma- or overturn considered a loss under Collision nently installed in a covered auto. Coverage. (2) Tapes, records or other sound re - 4. Coverage Extension. We will also pay up to producing devices designed for use $10 per day to a maximum of $300 for trans- with sound reproducing equipment. portation expense incurred by you because of the total theft of a covered auto of the private (3) Sound receiving equipment designed passenger type. We will pay only for those for use as a citizens' band radio, covered autos for which you carry either two-way mobile radio or telephone Comprehensive or Specified Causes of Loss or scanning monitor receiver, in - Coverage. We will pay for transportation ex- cluding its antennas and other ac- penses incurred during the period beginning cessories, unless permanently 48 hours after the theft and ending, regardless installed in the dash or console CA0001 1-87 Contains Copyrighted Material of Insurance Services Office, Inc., 1985 Page 6 of 10 opening normally used by the auto a. Pay its chosen appraiser; and manufacturer for the installation of a radio. b. Bear the other expenses of the appraisal and umpire equally. b. We will not pay for loss caused by or re- sulting from any of the following unless If we submit to an appraisal, we will still caused by other loss that is covered by retain our right to deny the claim. this insurance: 2. Duties in the Event of Accident, Claim, Suit (1) Wear and tear, freezing, mechanical or Loss or electrical breakdown. a. In the event of accident claim, suit or (2) Blowouts, punctures or other road loss, you must give us or our authorized damage to tires, representative prompt notice of the acci- dent or loss. Include: C. Limit of Insurance (1) How, when and where the accident The most we will pay for loss in any one accident or loss occurred; is the lesser of: (2) The insured's home and address; and 1. The actual cash value of the damaged or sto- len property as of the time of the loss; or (3) To the extent possible, the names and addresses of any injured persons 2. The cost of repairing or replacing the dam- and witnesses. aged or stolen property with other property b. Additionally, you and any other involved LL of like kind and quality. insured must: D. Deductible 0 (1) Assume no obligation, make no For each covered auto, our obligation to pay for, payment or incur no expense with - repair, return or replace damaged or stolen prop- out our consent, except at the ^erty will be reduced by the applicable deductible N insured's own cost. shown in the Declarations. Any Comprehensive (2) Immediately send us copies of any Coverage deductible shown in the Declarations demand, notice, summons or legal does not apply to loss caused by fire or lightning. paper received concerning the claim Section IV - Business Auto Conditions or suit. The following conditions apply in addition to the (3) Cooperate with us in the investi- Common Policy Conditions: gation, settlement or defense of the claim or suit. A. Loss Conditions j (4) Authorize us to obtain medical re- U) 1. Appraisal for Physical Damage Loss cords or other pertinent information. If you and we disagree on the amount of loss, (5) Submit to examination, at our ex- either may demand an appraisal of the loss. pense, by physicians of our choice, a In this event, each party will select a compe- as often as we reasonably require, tent appraiser. The two appraisers will select c. If there is a loss to a covered auto or its Na competent and impartial umpire. The ap- equipment you must also do the follow- praisers will state separately the actual cash LL value and amount of loss. If they fail to agree, in : g W they will submit their differences to the um- (1) Promptly notify the police if the pire. A decision agreed to by any two will be covered auto or any of its equipment U binding. Each party will: is stolen. CA0001 1-87 iLU Contains Copyrighted Material of Insurance Services Office, Inc., 1985 M M O O Page 7 of 10 (2) Take all reasonable steps to protect the covered auto from further dam- age. Also keep a record of your ex- penses for consideration in the settlement of the claim. (3) Permit us to inspect the covered auto and records proving the loss before its repair or disposition. (4) Agree to examinations under oath at our request and give us a signed statement of your answers. 3. Legal Action Against Us No one may bring a legal action against us under this Coverage Form until: a. There has been full compliance with all the terms of this Coverage Form; and b. Under Liability Coverage, we agree in writing that the insured has an obligation to pay or until the amount of that obli- gation has finally been determined by judgment after trial. No one has the right under this policy to bring us into an ac- tion to determine the insured's liability. 4. Loss Payment - Physical Damage Coverages At our option we may: a. Pay for, repair or replace damaged or stolen property; b. Return the stolen property, at our ex- pense. We will pay for any damage that results to the auto from the theft; or c. Take all or any part of the damaged or stolen property at an agreed or appraised value. 5. Transfer of Rights of Recovery Against Oth- ers To Us If any person or organization to or for whom we make payment under this Coverage Form has rights to recover damages from another, those rights are transferred to us. That person or organization must do everything necessary to secure our rights and must do nothing after accident or loss to impair them. CA0001 1-87 Contains Copyrighted Material of Insurance Services Office, Inc., 1985 B. General Conditions 1. Bankruptcy Bankruptcy or insolvency of the insured or the insured's estate will not relieve us of any obligations under this Coverage Form. 2. Concealment, Misrepresentation or Fraud This Coverage Form is void in any case of fraud by you at any time as it relates to this Coverage Form. It is also void if you or any other insured, at any time, intentionally con- ceal or misrepresent a material fact concern- ing: a. This Coverage Form; b. The covered auto; C. Your interest in the covered auto; or d. A claim under this Coverage Form. 3. Liberalization If we revise this Coverage Form to provide more coverage without additional premium charge, your policy will automatically provide the additional coverage as of the day the re- vision is effective in your state. 4. No Benefit to Bailee - Physical Damage Coverages We will not recognize any assignment or grant any coverage for the benefit of any person or organization holding, storing or transporting property for a fee regardless of any other pro- vision of this Coverage Form. 5. Other Insurance a. For any covered auto you own, this Coverage Form provides primary insur- ance. For any covered auto you don't own, the insurance provided by this Coverage Form is excess over any other collectible insurance. However, while a covered auto which is a trailer is con- nected to another vehicle, the Liability Coverage this Coverage Form provides for the trailer is: (1) Excess while it is connected to a motor vehicle you do not own. Page 8 of 10 (2) Primary while it is connected to a C. Puerto Rico; and covered auto you own. d. Canada. b. Regardless of the provisions of paragraph a, above, this Coverage Form's Liability We also cover loss to, or accidents in - Coverage is primary for any liability as- volving, a covered auto while being sumed under an insured contract. transported between any of these places. C. When this Coverage Form and any other S. Two or More Coverage Forms or Policies Is - Coverage Form or policy covers on the sued by Us same basis, either excess or primary, we If this Coverage Form and any other Cover - will pay only our share. Our share is the age Form or policy issued to you by us or any proportion that the Limit of Insurance company affiliated with us apply to the same of our Coverage Form bears to the total accident, the aggregate maximum Limit of of the limits of all the Coverage Forms Insurance under all the Coverage Forms or and policies covering on the same basis. policies shall not exceed the highest applicable 6. Premium Audit Limit of Insurance under any one Coverage Form or policy. This condition does not a. The estimated premium for this Cover- apply to any Coverage Form or policy issued age Form is based on the exposures you by us or an affiliated company specifically to told us you would have when this policy apply as excess insurance over this Coverage began. We will compute the final Form. premium due when we determine your actual exposures. The estimated total Section V -Definitions LL premium will be credited against the final A. Accident includes continuous or repeated exposure premium due and the first Named In- to the same conditions resulting in bodily injury osured will be billed for the balance, if any. or property damage. o If the estimated total premium exceeds n the final premium due, the first Named B. Auto means land motor vehicle, trailer or semi - C -4 Insured will get a refund. trailer designed for travel on public roads but does not include mobile equipment. b. If this policy is issued for more than one year, the premium for this Coverage C. Bodily injury means bodily injury, sickness or dis- Form will be computed annually based ease sustained by a person including death result - on our rates or premiums in effect at the ing from any of these. beginning of each year of the policy. D. Insured means any person or organization quali- 7. Policy Period, Coverage Territory fying as an insured in the Who Is An Insured provision of the applicable coverage. Except with Under this Coverage Form, we cover acei- respect to the Limit of Insurance, the coverage af- Z dents and losses occurring: forded applies separately to each insured who is seeking coverage or against whom a claim or suit a. During the policy period shown in the is brought. Declarations; and s E. Insured contract means: b. Within the coverage territory. W 1. A lease of premises; The coverage territory is: 2. A sidetrack agreement; w a. The United States of America; 3. An easement or license agreement in con - b. The territories and possessions of the nection with vehicle or pedestrian private U United States of America; railroad crossings at grade; CA0001 1-87 Lu Contains Copyrighted Material of Insurance Services Office, Inc., 1985 m r� o w 0 Page 9 of 10 4. Any other easement agreement, except in connection with construction or demolition operations on or within 50 feet of a railroad; 5. An indemnification of a municipality as re- quired by ordinance, except in connection with work for a municipality; or 6. That part of any other contract or agreement pertaining to your business under which you assume the tort liability of another to pay damages because of bodily injury or property damage to a third person or organization, if the contract or agreement is made prior to the bodily injury or property damage. Tort li- ability means a liability that would be im- posed by law in the absence of any contract or agreement. An insured contract does not include that part of any contract or agreement: 1. That pertains to the loan, lease or rental of an auto to you; or 2. That holds a person or organization engaged in the business of transporting property by auto for hire harmless for your use of a cov- ered auto over a route or territory that person or organization is authorized to serve by public authority. F. Loss means direct and accidental loss or damage. G. Mobile equipment means any of the following types of land vehicles, including any attached ma- chinery or equipment: 1. Bulldozers, farm machinery, forklifts and other vehicles designed for use principally off public roads; 2. Vehicles maintained for use solely on or next to premises you own or rent; 3. Vehicles that travel on crawler treads; 4. Vehicles, whether self-propelled or not, maintained primarily to provide mobility to permanently mounted: a. Power cranes, shovels, loaders, diggers or drills; or CA0001 1-87 Contains Copyrighted Material of Insurance Services Office, Inc., 1985 b. Road construction or resurfacing equip- ment such as graders, scrapers or rollers. 5. Vehicles not described in paragraphs 1, 2, 3, or 4 above that are not self-propelled and are maintained primarily to provide mobility to permanently attached equipment of the fol- lowing types: a. Air compressors, pumps and generators, including spraying, welding, building cle- aning, geophysical exploration, lighting and well servicing equipment; or b. Cherry pickers and similar devices used to raise or lower workers. 6. Vehicles not described in paragraphs 1, 2, 3 or 4 above maintained primarily for purposes other than the transportation of persons or cargo. However, self-propelled vehicles with the following types of permanently attached equipment are not mobile equipment but will be considered autos: a. Equipment designed primarily for: (1) Snow removal; (2) Road maintenance, but not con- struction or resurfacing; or (3) Street cleaning; b. Cherry pickers and similar devices mounted on automobile or truck chassis and used to raise or lower workers; and c. Air compressors, pumps and generators, including spraying, welding, building cle- aning, geophysical exploration, lighting or well servicing equipment. 7. Property damage means damage to or loss of use of tangible property. 8. Suit means a civil proceeding in which dam- ages because of bodily injury or property damages to which this insurance applies are alleged. Suit includes an arbitration proceed- ing alleging such damages to which you must submit or submit with our consent. 9. Trailer includes semitrailer. Page 10 of 10 LL 0 0 S 0 N 0 LL U4 N In a, U LL w m 0 _N U Changes in Business Auto and Truckers Coverage Forms - Insured Contract CA 00 29 12 88 Policy Amendment Commercial Business Auto Coverage Form - Garage Coverage Form Truckers' Coverage Form The Definition of insured contract in the DEFI- NITIONS Section is replaced by the following: E. Insured contract means: 1. A lease of premises; 2. A sidetrack agreement; 3. An easement or license agreement in con- nection with vehicle or pedestrian private railroad crossing at grade; 4. Any other easement agreement, except in connection with construction or demolition operations on or within 50 feet of a railroad; 5. An indemnification of a municipality as re- quired by ordinance, except in connection with work for a municipality; 6. That part of any contract or agreement en- tered into, as part of your business, by you or any of your employees pertaining to the rental or lease of any auto; 7. That part of any other contract or agreement pertaining to your business under which you assume the tort liability of another to pay damages because of bodily injury or property damage to a third person or organization, if the contract or agreement is made prior to the bodily injury or property damage. Tort li- ability means liability that would be imposed by law in the absence of any contract or agreement. An insured contract does not include that part of any contract or agreement: 1. That pertains to the loan, lease or rental of any auto, to you or any of your employees, if the auto is loaned, leased or rented with a driver; or 2. That holds a person or orgatuzation engaged in the business of transporting property by auto for hire harmless for your use of a cov- ered auto over a route or territory that person or organization is authorized to serve by public authority. This Form must be attached to Change Endorsement when issued after the policy is written. One of the Fireman's Fund Insurance Companies as named in the policy CA0029 12-88 Copyright, Insurance Services Office, Inc., 1988 Jam\ Explanation of Premium Basis - CA 70 03 01 87 Policy Amendment Commercial Business Auto Coverage Form - Garage Coverage Form When used as a premium basis: A. Cost of Hire Cost of hire means the total amount you incur for the hire of autos you don't own (not including autos you borrow or rent from your partners or employees or their family members). Cost of hire does not include charges for services performed by motor carriers of property or passengers. B. For Public Autos Gross Receipts means the total amount to which you are entitled for transporting passengers, mail or merchandise during the policy period regardless of whether you or any other carrier originate the transportation. Gross Receipts does not include: 1. Amounts you pay to railroads, steamship lines, airlines and other motor carriers oper- ating under their own ICC or PUC permits. 2. Advertising Revenue. 3. Taxes which you collect as a separate item and remit directly to a governmental division. 4. C.O.D. collections for cost of mail or mer- chandise including collection fees. Mileage means the total live and dead mileage of all revenue producing units operated during the policy period. C. For Rental or Leasing Concerns Gross receipts means the total amount to which you are entitled for the leasing or rental of autos during the policy period and includes taxes except those taxes which you collect as a separate item and remit directly to a governmental division. Mileage means the total of all live and dead mile- age developed by all the autos you leased or rented to others during the policy period. This Form must be attached to Change Endorsement when issued after the policy is written. One of the Fireman's Fund Insurance Companies as named in the policy President CA7003 1-87 N n x Ce Z) co Z N U Who is an Insured Amended - CA 70 07 01 87 Policy Amendment Commercial Business Auto Coverage Form Under SECTION II - LIABILITY COVERAGE, A. COVERAGE, Item 1. is amended to read: Who is an Insured The following are insureds: a. You for any covered auto. b. Anyone else while using with your permission a covered auto you own, hire or borrow ex- cept: (1) The owner of a covered auto you hire or borrow from one of your employees or a member of his or her household. (2) Someone using a covered auto while he or she is working in a business of selling, servicing, repairing, or parking autos un- less that business is yours. (3) Anyone other than your employees, partners, a lessee or borrower or any of their employees, while moving property to or from a covered auto. (4) A partner of yours for a covered auto owned by him or her or a member of his or her household. Anyone liable for the conduct of an insured described above but only to the extent of that liability. However, the owner or anyone else from whom you hire or borrow a covered auto is an insured only if that auto is a trailer connected to a covered auto you own. This Form must be attached to Change Endorsement when issued after the policy is written. One of the Fireman's Fund Insurance Companies as named in the policy CA 7007 1-87 f �^.