Free Complaint - District Court of Delaware - Delaware

Case 1:06-cv-00097-JJF

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UNITED STATES DISTRICT COURT DISTRICT OF DELAWARE NATIONAL FIRE & MARINE INSURANCE COMPANY, Plaintiff, -againstROBIN JAMES CONSTRUCTION, INC., Defendant. ) ) ) ) ) ) ) ) ) )

Civil Action No.:

COMPLAINT Plaintiff, National Fire & Marine Insurance Company, by and through its counsel, Deily, Mooney and Glastetter, LLP, as and for its Complaint against the defendant, Robin James Construction, Inc., hereby alleges as follows: PARTIES 1. Plaintiff National Fire & Marine Insurance Company (hereinafter "Plaintiff" or

"National Fire") at all times herein relevant was and is a corporation duly organized and existing under and by virtue of the laws of the State of Nebraska, maintaining offices and principal place of business at 3024 Harney Street, Omaha, Nebraska 68131. 2. Upon information and belief, at all times herein relevant, defendant Robin James

Construction, Inc. (hereinafter "defendant") was and is a corporation duly organized and existing under and by virtue of the laws of the State of Delaware, maintaining an office and principal place of business at 27701 James Road, Laurel, DE 19956.

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JURISDICTION AND VENUE 3. This Court has jurisdiction to entertain this action pursuant to 28 U.S.C. § 1332,

as there is complete diversity of citizenship between plaintiff and defendant, and as the matter in controversy exceeds the sum of $75,000.00, exclusive of interest and costs. 4. Venue is proper in the United States District Court for the District of Delaware

pursuant to 28 U.S.C. § 1391(a), as it is in this district which defendants have their principal places of business, and which the acts giving rise to the action occurred. AS AND FOR THE FIRST CAUSE OF ACTION 5. Plaintiff repeats, reiterates and realleges each and every allegation contained in

paragraphs "1" through "4" as if set forth in full herein. 6. Upon information and belief, in or around 2002 defendant contracted with The

Insurance Market, Inc. (hereinafter "Insurance Market"), whereby Insurance Market agreed to obtain for defendant a general liability insurance policy for the period September 26, 2002 through September 26, 2003. 7. Upon information and belief, Insurance Market contacted Quaker Agency, Inc.

(hereinafter "Quaker"), an authorized representative of National Fire, to obtain a general liability insurance policy for defendant. 8. Upon information and belief, Quaker obtained a quote from National Fire for a

general liability insurance policy for defendant. 9. The insurance premium for the defendant's general liability policy was based on

its estimate of variable rating information, including payroll and subcontractor expenses. At the conclusion of the coverage period, an audit of the defendant's records was conducted to determine the final amount of premiums due and owing under the policy. 2

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10.

Defendant agreed to be bound by National Fire's general liability insurance

policy, and agreed to pay an advance premium in the amount of $13,753.00. Defendant further agreed to pay any additional audit indicated premiums determined at the conclusion of the coverage period. 11. In exchange for payment of these premiums, plaintiff agreed to provide defendant

with general liability insurance coverage of an amount and type agreed upon by the parties. A copy of this policy, No. 72LPE681493 and subsequent agreed upon changes thereto, are attached hereto as Exhibit "A". 12. In accordance with the terms of the general liability insurance policy, defendant

paid an advance premium in the amount of $13,753.00. 13. In accordance with the terms of the general liability insurance policy, plaintiff

provided defendant with valid general liability insurance coverage for the period September 27, 2002 through September 27, 2003. 14. After conclusion of the coverage period, a premium audit was conducted and

resulted in additional premiums due plaintiff in the amount of $34,952.00. A copy of the Report of Audit is attached hereto as Exhibit "B". 15. Defendant promptly was notified of the audit results, and of its obligation to remit

payment to plaintiff in the amount of $34,952.00 in accordance with the policy. 16. However, to this date, defendant has failed and refused to pay the additional

audit-based premiums in accordance with the terms of its insurance policy. 17. Defendant breached its contract with plaintiff National Fire by failing to pay the

required premiums as agreed upon under the policy.

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18.

As a result of defendant's breach of the contract, defendant is liable to plaintiff

National Fire for outstanding audit premiums in the amount of $34,952.00, plus surplus lines tax in the amount of $699.04, due and owing under the terms of the insurance policy. 19. As a result of defendant's breach of contract, defendant also is liable for plaintiff's

attorneys' fees, costs and expenses incurred in connection with the enforcement of its rights under the policy. AS AND FOR A SECOND CAUSE OF ACTION 20. Plaintiff repeats and reiterates the allegations contained in paragraphs "1" through

"19" as if set forth in full herein. 21. Upon information and belief, in or around 2003 defendant sought to renew its

general liability insurance policy for defendant's business for the period September 27, 2003 through September 27, 2004. 22. Upon information and belief, The Insurance Market obtained from Quaker a quote

for the renewal of the National Fire general liability insurance policy for defendant. 23. The insurance premium for the renewal of defendant's general liability policy was

based on its estimate of variable rating information, including payroll and subcontractor expenses. At the conclusion of the coverage period, an audit of the defendant's records was conducted to determine the final amount of premiums due and owing under the policy. 24. Defendant agreed to be bound by National Fire's general liability insurance

policy, and agreed to pay an advance premium in the amount of $18,661.00. Defendant further agreed to pay any additional audit indicated premiums determined at the conclusion of the coverage period.

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25.

In exchange for payment of these premiums, plaintiff agreed to provide defendant

with general liability insurance coverage of an amount and type agreed upon by the parties. A copy of this policy, No. 72LPE690418 and subsequent agreed upon changes thereto, are attached hereto as Exhibit "C". 26. In accordance with the terms of the general liability insurance policy, defendant

paid an advance premium in the amount of $18,661.00. 27. In accordance with the terms of the general liability insurance policy, plaintiff

provided defendant with valid general liability insurance coverage for the period September 27, 2003 through September 27, 2004. 28. At the conclusion of the coverage period, a premium audit was conducted and A copy of the

resulted in additional premiums due plaintiff in the amount of $173,458.00. Report of Audit is attached hereto as Exhibit "D". 29.

Defendant promptly was notified of the audit results, and of its obligation to remit

payment to plaintiff in the amount of $173,458.00 in accordance with the policy. 30. However, to this date, defendant has failed and refused to pay the additional

audit-based premiums in accordance with the terms of its insurance policy. 31. Defendant breached its contract with plaintiff National Fire by failing to pay the

required premiums as agreed upon under the policy. 32. As a result of defendant's breach of the contract, defendant is liable to plaintiff

National Fire for outstanding audit premiums in the amount of $173,458.00, plus surplus lines tax in the amount of $3,469.16, due and owing under the terms of the insurance policy.

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33.

As a result of defendant's breach of contract, defendant also is liable for plaintiff's

attorneys' fees, costs and expenses incurred in connection with the enforcement of its rights under the policy. AS AND FOR A THIRD CAUSE OF ACTION 34. Plaintiff repeats and reiterates the allegations contained in paragraphs "1" through

"33" as if set forth in full herein. 35. Upon information and belief, in or around 2004 defendant renewed its general

liability insurance policy for defendant's business for the period September 27, 2004 through September 27, 2005. 36. Upon information and belief, the Insurance Market obtained from Quaker a quote

for the renewal of the National Fire general liability insurance policy for defendant. 37. The insurance premium for the defendant's general liability policy was based on

its estimate of variable rating information, including payroll and subcontractor expenses. At the conclusion of the coverage period, an audit of the defendant's records was to be conducted to determine the final amount of premiums due and owing under the policy. 38. Defendant agreed to be bound by National Fire's general liability insurance

policy, and agreed to pay an advance premium in the amount of $20,000.00. Defendant further agreed to pay any additional audit indicated premiums determined at the conclusion of the coverage period. 39. In exchange for payment of these premiums, plaintiff agreed to provide defendant

with general liability insurance coverage of an amount and type agreed upon by the parties. A copy of this policy, No. 72LPE698115 and subsequent agreed upon changes thereto, are attached hereto as Exhibit "E". 6

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40.

In accordance with the terms of the general liability insurance policy, defendant

paid an advance premium in the amount of $20,000.00. 41. In accordance with the terms of the general liability insurance policy, plaintiff

provided defendant with valid general liability insurance coverage for the period September 27, 2004 through September 27, 2005. 42. Due to defendant's failure to pay the additional premiums due under Policy No.

72LPE690418, this policy was canceled effective November 30, 2004. A copy of the Notice of Cancellation is attached hereto as Exhibit "F". 43. A cancellation audit was conducted in January, 2005, and resulted in additional

premiums due plaintiff in the amount of $17,727.00. A copy of the Cancellation Audit is attached hereto as Exhibit "G". 44. Defendants promptly were notified of the audit results, and of their obligation to

remit payment to plaintiff in the amount of $17,727.00 in accordance with the policy. 45. However, to this date, defendant has failed and refused to pay the additional

audit-based premiums in accordance with the terms of their insurance policy. 46. Defendant breached its contract with plaintiff National Fire by failing to pay the

required premiums as agreed upon under the policy. 47. As a result of defendant's breach of the contract, defendant is liable to plaintiff

National Fire for outstanding audit premiums in the amount of $17,727.00, plus surplus lines tax in the amount of $354.54, due and owing under the terms of the insurance policy. 48. As a result of defendant's breach of contract, defendant also is liable for plaintiff's

attorneys' fees, costs and expenses incurred in connection with the enforcement of its rights under the policy. 7

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WHEREFORE, plaintiff National Fire respectfully requests that this Court award plaintiff the following damages: (a) (b) (c) Compensatory damages in the amount of $230,659.74; Attorney's fees, costs, and expenses; and Such other and further relief as to the Court may seem just and proper. By: _/s/ Richard D. Becker_____________ Richard D. Becker, Esq. Becker & Becker 534 Greenhill Avenue The Court at Wawaset Plaza Wilmington, DE 19805 Tel: (302) 654-5374 Lisa F. Joslin, Esq. Deily, Mooney and Glastetter, LLP Attorneys for Plaintiff National Fire & Marine Insurance Company 8 Thurlow Terrace Albany, New York 12203 Tel: (518) 436-0344

Dated: February 13, 2006

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EXHIBIT A

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A STOCKCOMPANY

POLICY COMMERCIAL

To: Report ALL Accidents

IMPORTANT NOTICE lf any new or replacementdriversare hired during the term of this policy, notify the Failureto do so may companyimmediately. resultin terminationof your policy. M-2633a {11/85)

1-800-356-5750
24 Hour Toll Free

FORMAND ENDORSEMENTS, THESEPOLICYPROVISIONS PAGE,COVERAGE WITH THE DECLARATIONS THIS POLICY IF ANY. COMPLETE

M4600 (6/95)

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Trans. No.:

AM O7l25l?O8309:24

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M,29O4 {r1l8r')

No.: I Endorsement

ENDORSEMENT CHANGE GENERAL
READIT CAFEFULLY THE CHAAIGES POLICY.PLFASE THIS ENDORSEMENT date ol the potlcyor on the date sho"rnbdotrtt' changesthe pdicy onlhe inception This endorsement
It is agteed that ths policryis changed as follcn*'s: Ir ls hereby undersEood and agreed Ehat Ehe named lnsured follows: Robin James conscrueLlon, Inc. ls amended to read a s

MditlonalPremium $ nil HeturnPrendum remainunchanged and agreemenls Ail otherterms,conditions
Name C,ornpnny

s

P o l i c y N u m b t2 L P E G g 1 4 9 3 ?

NATIONAI

FIRE 5. MARINE INS.

CO. 0 6/ 2 0 / 2 0 0 3

Robin C, James Construction

Inc

irt,

NJ

policy') to ls (Iho Ataching Ctauea needbe completsdonlywhenthis endoreomenl issud6ub8qunl prepatarionof the M-2904(r1lBO)

Case 1:06-cv-00097-JJF
new
RFNFWAI DFNIIMBFR

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05/1112004 09:41AM

NA'3AL RE Fr i#fl:fiiH'

*f cEcotutt*,Tlu,*

72LPE681493
RobinT. Jarnes Construction / lne. 27701 JamesRd. Laurel

LIABILIW.DECLARATIONS COMiJIERCIAL GENLRAL Trans. No. Sub-Agent'sCod6:

1995t Timeat the NamedInsured's 12:01A.M.Standard Addressstatedabove. JointVenture Other:

POLICYPERIOD: coversFRO Policy is: The namedinsured x Individual Partrership Corporation/
Rrrsincss nf ihc named insrlrcd is' |FNTFR RFI O\A/}

Annual.rrnlessothenrisestafed-(ENTERBELOW) AuditPeriorl'

contraelor
I liflTs r)F tNsr tFtaNcF

GENEMLAGGREGATE (OTHER LIMIT THAN PRODUCT-COMPLETED OPERATIONS)&99499pRoDUcr$coMpLETED opERATtoNs AGGREGATE LlMtr dS9!.0991..'Eggm''?PERS.NAL ADVERTI.ING & INJURY LlMlr '/ $1.000.000 EASH occuRRENcE LtMtT $50.000 / DAMAGE FIRE LIMIT Alty ONEFIRE $5'000 /-- ^-ry nNtrptrFl-soN MFntrlat trxptrNstr lMrr t COVERAGE ADVANCE PREMIUM ,/ $13.753.00l coMMERCtALGENERAL LtABtLlTy COVERAGE (SEESCHEDULE FORMM 3776) (DESCRIBE) oTHER COVERAGE TOTALADVANCE PREMIUM Tax: $277.A6 $13,753.00
Minimum annualeamedpremium S13,753.00

RETROACTIVE DATE {CG00 02-app[cabte ctairns to form made coverage , Coverage ofthisinsurance notapply 'bodilyinjury" "property A does to damage or Retroaclive Date:
(Enl,er Date or "None" if no Retroaclive Date applle3.)

Location of All Premises You Own, Rent or Occupy: 27741 James Rd,, Laurel, DE 19956

NOTICE IMPORTANT TO IS ST]BJECT A THIS POLICY LIMIT AS SHOWN GENERAL AGGREGATE SECTION IN THE LIMITS OF INST]RANCE ABOVE

ENDORSEMENTS ATTACHED THISPOLICY: TO M3776a(1 1187l.ccffial(f.0t01) CG0300(1/96) M3795(03/87) M4685(9/94) cG2147(7t98) M3792a(2/98) M4359A(12/01) M4600(6/9s)M5058a(10/01)M5059a(10/01)M5073(12l01)M5075 (2n1) M5076(12l01)M5077(12lol)FM2e84(5/89)CG2136(1r

6)CG213e(10/e3) kf CountersignedS Girt'NJ Ogn$rcz ar
Ft/l-3777(3iB7i
i

By

4r,"Qh4d{rq
Authorized Prsidenl

ln Witnass whereof, we havecausedthis policy to be execlJted attested. and

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051111?0M 09:41AM

f,vlM
POLICY NO: 721PE681493 SCHEDULE HAZARDS OF cllss
CTASS DESCRIPTION IFICATION

ERCIAL GENERAL Llryf, HEDULE LIABI

CODE

PREMIUM BASTS'

FOR COMPAhIY USE ONLY

RATFS

PREMISES\ OPERATIONS PROOUCTS

PREMISES\ OPEMTIONS

PROOUCTS

Contractors subcontradedwork in conneclionwith constuction, reconstruclion, repair,or erectionof buildings.

s15s5/ c) 50O,000

8.79

12.36

/

4,3S5.00

6,180.00

Contraclors exea.rtive supeMsorsor executivesuperintendents products complatedoperations subiectto general aggregst.

91580

/ p)25,3ffi

125.63

3,178.m

SUBJEC-TO 25' F ILLY EARh :D POLICY PF MIUMIN ,VRITING THE EVE .ITOF THE N S U R F D :QUESTF )R CANCFI'ATION. F
TOTAL ADVANCEPREMIUMS
'PremfumBasi3: Il,[|77aa rvl37783(1tl87) (a)Area (per 1,000squsrEroot) (c) Tohl cost (per t1,fi)o of Torat cost) (m)Adrni$ior}S(por I,OO0admlssboE) (p) Payroll(per S1,000 pay.olt) ot ($)Gross Sales (perEt,0O0of Gr6s Sales) (u) Unils (per eactr)

$7573.00

$6180.00

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LIABILITY GENERAL COMMERCIAL cG 00 01 10 01

FORM COMMERCIAL GENERAL LIABILITY COVERAGE
Variousprovisionsin this policy restrictcoverage. to Readthe entirepolicycarefully determine rights, dutiesand what is and is not covered. Throughout policythe words"you"and ^your" refer this to the Namedlnsured shownin the Declarations. and qualifying a any other personor organization as Namedlnsured The words'ke", "us' underthis policy. "ourn providing insurand referto the company this ance. meansany person organization or Theword"insured" qualifying such underSection - Who ls An Inas ll sured. that appearin quotation Otherwordsand phrases marks have specialmeaning,Referto SectionV Definitions. SECTION GOVERAGES I. AND PROPERTY COVERAGE BODILY A INJURY DAMAGELIABILITY 1. InsuringAgreement a. We will pay lhose sums that the insuredbecomeslegally obligated payas damages to becauseof "bodilyinjury'' "property or damage"to whichthisinsurance applies. willhavethe We rightanddulyto defend insured the against any "suit"seekingthosedamages. However, will we have no duty to defendthe insuredagainstany "suit" seekingdamagesfor "bodilyinjur/ or "property damage" whichthisinsurance to does not apply.We may,at our discretion, investigate any "occurrence" settleany claimor and "suit"that may result.But: (1) The amountwe will pay for damagesis in limited described Section Limits as lllOf Insurance: and (2) Our rightand dutyto defend endswhenwe limit haveusedup the applicable of insurance in the payment judgments setof or tlemenls underCoverages or B or mediA underCoverage cal expenses C. or to No otherobligation liability pay sumsor performacts or servicesis coveredunlessexplicitly provided underSupplementrary for Payments- Coverages and B. A appliesto "bodilyinjury"and b. This insurance "property only if: damage" "bodily (1) The damage" is injur/ or "property takesplace caused an "occurrence'that by territory'; in the "coverage "bodilyinjury"or "property damage" (2) The and occursduringthe policyperiod; listed (3) Priorto the policyperiod, insured no ll underParagraph of Section - Who ls 1. An Insured and no "employee'authorized by you to give or receive notice of an "occurrence" claim,knewthatlhe "bodily or damage"had occuned, injury"or "property or in wholeor in part.lf sucha listedinsured "employee" knew, priorto the authorized policy period,that the "bodily injur/ or "property thenanycorr occurred, damage" of tinuation, changeor resumption such "bodilyiryury"or "property damage"during or after the policyperiodwill be deemedto havebeenknownpriorto the policyperiod. "Bodilyinjury"or "property damage"which c. occursduringthe policyperiodand was not, priorto the policyperiod,knownto have ocunderParagraph 1. by listed curred any insured of Section ll - Who ls An Insured or any "employee" by authorized you to giveor receive any or of notice an 'occurrence" daim,includes of change or resumption that continuation, "bodilyinjury"or 'propertydamage' afterthe period. endof the policy "Bodily injury"or "propertydamage"will be d. deemedto have been knownto have occurred listedunat the earliest timewhen any insured ll 1. der Paragraph of Section - Who ls An Inby authorized you to suredor any "employee" give or receivenoticeof an "occurrence" or claim: (1) Reports or any part, the 'bodilyinjuqf of all, to or 'property damage" us or any otherinsurer: (2) Receivesa writtenor verbal demandor of clairnfor damagesbecause the "bodily damage"; or injury" "property or (3) Becomes awareby any othermeansthat "bodily has damage" ocinjur/ or "property curredor has begunto occur.

cG 00 01 10 01

Inc.,2000 O ISOProperties,

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of e. Damagesbecause "bodilyinjury"include by or damages claimed any person organizaor tion for care, loss of services deathresulting injury". at anytimefromthe "bodily 2. Exclusions Thisinsurance doesnotapplyto: a. Expected Intendedlnjury Or "Bodilyinjury"or "property damage"expected of or intended from the standpoint the insured. This exclusion does not applyto 'bodilyinjury" force to from the use of reasonable resulting protect persons property. or b. Contractual Liability "Bodilyinjury"or "property damage" which for the insuredis obligatedto pay damagesby of reasonof lhe assumption liabilityin a conThis exclusiondoes not tract or agreement. for applyto liability damages: (1) Thatthe insured wouldhavein the absence or or of the contract agreemenl; (2) Assumed a contract agreement is in or that the contracl',provided "bodily an "insured damage" occurssubse. injury''or "property quent to the execution the contraclor of for of agreement. Solely the purposes liabilreacontract", ity assumedin an "insured litigaattorney feesand necessary sonable tion expensesincurredby or for a parly other than an insuredare deemedto be damages because of "bodily injury' or "property provided: damage", (a) Liability suchparty or for the cost to for, of, that party'sdefensehas also been in contract": assumed the same"insured and (b) Such attorneyfees and litigation expensesare for defenseof that party dispute againsta civil or alternative proceeding whichdamages resolution in are to whichthisinsurance applies alleged.

LiquorLiability "Bodilyinjury"or "property for damage" which of: may be held liableby reason any insured of to (1) Causing conlributing the intoxication or any person; to beverages a (2) The furnishing alcoholic of person age underthe legaldrinking or unor of der the influence alcohol; relating or regulation (3) Anystatute, ordinance or to the sale,gift,distribution use of alcoholicbeverages. appliesonly if you are in the This exclusion selling, distributing, of manufacturing, business beverages. alcoholic or serving furnishing Workers' CompensationAnd Similar Laws undera workers' of Any obligation the insured or benefits unemploydisability compensation, law. law mentcompensation or anysimilar Liability e. Employer's "Bodily injury"to: arisingout of (1) An "employee" the insured of and in the courseof: or (a) Employment the insured; by to (b) Performing dutiesrelated the conduct or business: of the insured's or brother sister (2) The spouse, child,parent, of as of that "employee" a consequence (1) Paragraph above. applies: Thisexclusion (1) Whether insured may be liableas an the and or employer in anyothercapacity; withor (2) To any obligation sharedamages to repaysomeoneelse who must pay damof agesbecause the injury. This exclusiondoes not apply to liabilityasconunderan "insured sumedby the insured tract'.

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lnc.,2000 @ ISOProperties,

cG00011001tr

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t. Pollution
"Bodily injury" "property or damage" arising tl) out of the actual, alleged threatened or discharge, dispersal, seepage, migration, releaseor escapeof "pollutants": (a) At or from any premises, or location site whichis or was at any timeownedor occupied or rented loaned any by, or to, insured. However, this subparagraph does not applyto: (i) "Bodily injury'' sustained if withina buildingand caused by smoke, fumes, \poror sootfromequipment usedto heatthat building; (ii) "Bodily injury'' or'property damage" for whichyou may be heldliable, if you are a contractor the owner and or lessee such premises, or of site location beenaddedto pur pdhas icyas an additional insured r+. with spect to your ongoingoperations performed thatadditional for insured at thatpremises, or locatbn site and suchpremises, or location not site is and neverwas ownedor occupied by, or rentedor loanedto, any insured, otherthanthatadditional insured;or (iii) "Bodily injury" "property or damage" arising of heat, out smoke fumes or from a "hostile fire": (b) At or from any premises, or location site whichis or was at any time usedby or for any insuredor othersfor the hanprocessing dling,storage, disposal, or treatment waste: of (c) Which are or were at any time transported,handled,stored,treated,disposedof, or processed wasteby or as for: (i) Any insured; or (ii) Any person organization whom or for you may be legallyresponsible; or

(d) At or from any premises, or location site or on whichany insured any contractors or working directly inor subcontractors behalf perare directly any insured's on if are forming operations the "pollutants" site brought or to the premises, or loon with suchoperacationin connection or contractor suF tionsby suchinsured, this contractor. However, subparagraph does not applyto: (i) "Bodily damage" injury''or"property arisingout of the escapeof fuels,lubricantsor other operatingfluids which are neededto performthe or hydraulic menormalelectrical, for chanical functionsnecessary the or operation 'mobib equipment" of or its parts,if suchfuels,lubricants from a fluidsescape otheroperating vehiclepart designedto hold,store does them.This exception or receive not apply if the "bodily injury"or "property damage"arisesout of the dispersal or discharge, intentional or releaseof the fuels. lubricants fluids,or if such fuother operating fluor els,lubricants otheroperating ids are broughton or to the premwith the intent ises,siteor location or dispersed thattheybe discharged, released part of the operations as by being performed such insured, or contractor subcontractor: damage" (ii) "Bodily injury''or"property sustainedwithin a buildingand caused by the releaseof gases, fumes or vapors from materials in into brought thatbuilding connecbeingperformed tionwith operations by you or on your behalfby a conor tractoror subcontractor; "Bodily (iii) or'propertydamage" injury" arisingout of heat,smokeor fumes froma'hostilefire".

cG 00 01 10 01

O ISOProperties, Inc.,2000

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(e) At or fromany premises, or location site on whichany insured any contractors or or subcontractors working directly inor directly any insured's on behalf perare forming operations the operations if are to testfor, monitor, cleanup, remove, contain, treat,detoxrff neutralize, in or or any way respond or assessthe efto, fectsof, "pollutants". (2) Anyloss,coslor expense arising of any out (a) Request, demand, orderor statutory or regulatory requirement any insured that or others for, monitor, test cleanup, remove,contain, treat,detoxiry neutralor ize,or in any way respond or assess to, the effectsof, 'pollutants"; or (b) Claimor "suit"by or on behalf a govof ernmental authority damagesbefor causeof lestingfor, monitoring, cleaning up, removing, containing, treating, detoxifying neutralizing, in any way or or responding or assessing effects to, the of, "pollutants". However, paragraph this does not applyto liability damagesbecause "property for of damage" the insured that wouldhavein the absence suchrequesl, of demand, orderor statutory regulatory or requirement, such or claimor "suit"by or on behalfof a governmental authority. g. Aircraft, Auto Or Watercraft "Bodily injury" or'propertydamage" arising out of the ownership, maintenance, or enuse trustmentto others of any aircraft,"auto" or watercraft ownedor operatedby or rentedor loaned any insured. to Use includes operation and "loading unloading'. or This exclusionapplies even if the claims against any insured allegenegligence other or wrongdoing the supervision, in hiring,employmenl, trainingor monitoring othersby that of insured,if the "occurrence" which causedthe "bodilyinjury"or "property damage"involved the ownership, maintenance, or entrustuse "auto"or walermentto othersof any aircraft, craftthatis ownedor operated or rentedor by loaned any insured. to Thisexclusion doesnotapplyto: (1) A watercraft you whileashore premises on own or rent, (2) A watercraft do not own that is: you (a) Lessthan26 feetlong;and (b) Nol being used to carry personsor property a charge; for
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(3) Parking "auto"on, or on the ways next an you own or rent,provided the to, premises "auto"is not ownedby or rentedor loaned to you or the insured; (4) Liability underany "insured conassumed maintenance or tract"for the ownership, use of aircraflor watercraft or (5) "Bodily damage" inju4/ or "property arising of of the operation anyof theequipment out f.(2) or f.(3) of the defi listedin Paragraph of equipment". nition "mobile h. MobileEquipment "Bodily arising damage" out injuqf or "property of: (1) Thekansportation "mobile equipmenf of by by an "auto"ownedor operated or rentedor or loanedto any insured; "mobile (2) The use of in, equipment" or while for, in practice or while beingprepared for, racing, speed, demolition, any prearanged activity. or stunting i. War "Bodilyinjuqf or "property due to war, damage" or whetheror not declared, any act or condition incident war. War includescivil war, insurto This exclusion or rection, rebellion revolution. undera conassumed onlyto liability applies lract or agreement. j. DamageTo Property "Property to: damage" (1) Property own,rent,or occlrpy, you including incurred you,or by any costsor expenses or any other person,organization entity,for enhancement, restorarepair,replacemenl, of for tionor maintenance suchproperty any prevention injuryto a of reason,including property; person damage another's to or you (2) Premises sell,give awayor abandon, if damage" arisesout of any part the 'property of thosepremises; (3) Property loanedto you; property the care,cuslodyor (4) Personal in conlrolof the insured; part (5) Thatparticular of real property which on you or any contractors subcontractors or on or working directly indirectly pur behalf if operations, the "property are performing or damage" arisesout of thoseoperations; (5) That particularpart of any propertythat repairedor replaced be. must be restored, cause "your.work" was incorrectlyperformedon it.

@ ISO Properties, Inc.,2000

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(1), Paragraphs (3) and (4) of thisexclusion do not apply to "propertydamage"(other than damageby fire) to premises, including the contents suchpremises, of rentedto youfor a period 7 or fewerconsecutive of days.A separatelimitof insurance applies Damage to To Premises Rented You as described SecTo in - Limits lnsurance. tion111 Of (2) Paragraph of thisexclusion doesnotapplyif the premises "yourwork" and were never are occupied, rentedor heldfor rentalby you. (3), Paragraphs (4),(5)and (6) of thisexclusion do notapplyto liability assumed undera sidetrackagreement. (6) Paragraph of this exclusion does not apply to "property damage"included the "productsin completed operations hazard" . Damage Your Product To "Property damage'to "yourproduct" arising oul of it or any partof it. Damage YourWork To "Property damage" "yourwork" arisingout of to it or any partof it and included the "productsin completed operations hazard" . Thisexclusion doesnot applyif the damaged work or the work out of which the damage ariseswas performed your behalfby a subon conlraclor. DamageTo lmpaired Property Or Property Not Physicallylnjured "Propertydamage"to "impairedpropert/ or property that has nol beenphysically injured, arising of: out (1) A defect, deficiency, inadequacy dangeror ous conditionin 'your product"or "your work";or (2) A delayor failureby you or anyoneacting on your behalf to performa contractor agreement accordance in with its terms. Thisexclusion doesnotapplyto the lossof use of other property arisingout of suddenand accidentalphysicalinjury to "your product"or "yourwork"after it has been put to its intended use.

Work Or lmpaired n. RecallOf Products, Property for Damages claimed any loss,costor expense incurredby you or othersfor the loss of use, repair,replacewithdrawal, recall,inspection, or of: removal disposal ment,adjustment, "Yourproduct"; (1) (2) "Yourwork";or property"; (3) "lmpaired if such product,work, or propertyis withdrawn from the marketor from use by any or recalled personor organization because a knownor of or suspecteddefect, deficiency,inadequacy in dangerous condition it. o. PersonalAndAdvertisingInjury "Bodilyinjuq/ arisingout of "personal adand injury". vertising c. Exclusions throughn. do not applyto damage whilerentedto you or tempoby fire to premises of rarily occupied by you with permission the limit applies this to owner. separate of insurance A coverage described Sectionlll - LimitsOf Inas in surance. AND ADVERTISING COVERAGE PERSONAL B INJURY LIABlLITY 1. lnsuringAgreement a. We will pay lhose sums that lhe insuredbeto comeslegallyoblQated pay as damagesbeinjury"to and advertising cause of "personal applies. willhavethe We whichthisinsurance againslany rightand duty to defendthe insured "suit"seekingthosedamages. we However, will have no dutyto defendthe insuredagainstany "suit"seekingdamagesfor "personal and addoes vertisinginjury"to which this insurance investinot apply.We may, at our discretion, gate any offenseand settleany claimor 'suitn that may result.But (1) The amountwe will pay for damagesis in llllimited described Section Limits as Of Insurance: and (2) Our rightand dutyto defend end whenwe limitof insurhaveusedup the applicable or ance in the paymentof judgments settlements underCoverages or B or mediA C. underCoverage cal expenses

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to No otherobligation liability pay sumsor or performacts or servicesis mvered unlessexplicitly provided under Supplementary for Payments Coverages and B. A b. This insurance to applies "personal adverand tisinginjur/ caused an offense by arising of out your business only if the offensewas combut mitted in the "coverageterritory"during the policy period. 2. Exclusions doesnotapplyto: Thisinsurance a. KnowingViolationOf RightsOf Another "Personal injury'caused or by and advertising at the direction the insuredwith the knowlof edgethat the act wouldviolatethe rightsof anotherand wouldinflict"oersonal and advertising injury". With Knowledge b. MaterialPublished Of Falsity "Personaland advertising injury"arisingout of publication material, doneby oralor written of if or at the direction the insuredwith knowlof edgeof its falsity. c. MaterialPublishedPriorTo Policy Period "Personal and advertising injury" arisingout of oral or written publication materialwhose of firstpublication placebefore beginning took the period. of the policy d. CriminalActs "Personal advertising injury" and arisingout of a criminal committed or at the direction act bv of the insured. Liability e. Gontractual "Personal advertising and injur/ for whichthe insuredhas assumedliabilityin a contractor agreement. exclusion This doesnot applyto liability damages the insured for that wouldhave in the absence lhe contract agreement. of or f. BreachOf Contract "Personal advertising and injur/ arising of out exceptan impliedcontract a breachof contract, to use another's advertisingidea in your "advertisement".

Of s. QualityOr Performance Goods- Failure To Conform To Statements "Personaland advertising injur/ arisingout of the failure of goods, productsor servicesto of with any slatement qualityor perconform madein your "advertisement". formance

h . Wrong DescriptionOf Prices

"Personal injury''arisingout of and advertising of the wrong description the price of goods, products or services stated in your 'advertisement". lnfringementOf Gopyright,Patent, TrademarkOr TradeSecret 'Personaland advertising injury''arisingout of of the infringement copyright,patent,tradeproperty mark,tradesecretor other intellectual rights. does not applyto inthis exclusion However, of in fringement, your "advertisement', copyright,tradedressor slogan. t . lnsuredsIn MediaAnd lnternetType Businesses "Personal by injurf committed and advertising is: an insured whosebusiness publishing or (1) Advertising, broadcasting, telecasting; contentof web(2) Designing determining or sitesfor others:or (3) An lnternet search, access, content or serviceprovider. However,this exclusiondoes not apply to and 14.a.,b. and c. of "personal Paragraphs Secinjury"under the Definitions advertising tion. the For the purposesof this exclusion, placing for of frames,bordersor links,or advertising, is you or othersanywhere the lnternet, not on of the by itself,considered business advertispublishing telecasting. or ing, broadcasting,
l.

ChatroomsOr BulletinBoards k . Electronic "Personal inju4f arisingout of and advertising boardthe inchatroom bulletin or an electronic sured hosts,owns,or over whichthe insured control. exercises

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l. Unauthorized Use Of Anothefs NameOr Product "Personal advertising and injury'' arising of out the unauthorized of another's use name or product youre-mailaddress, in domain name or metatag, any othersimilar or tactics misto potenlial leadanother's cuslomers. m. Pollution "Personal advertising and injury" arising of out the actual,alleged or threatened discharge, dispersal, seepage, migration, release esor capeof "pollutants" anytime. at n. Pollution-Related Any loss,costor expense arisingout of any: (1) Request, demand orderthatany insured or or others test for, monitor,clean up, remove,contain,treat,detoxifyor neutralize, or in any way respondto, or assessthe effectsof, "pollutants"; or of {2) Claimor suitby or on behalf a governmentalauthority damagesbecause for of testing monitoring, for, cleaning removup, ing,containing, treating, detoxifying nerF or tralizing, in anyway responding or asor to, sessingthe effectsof, "pollutants". COVERAGE MEDICAL C PAYMENTS 1. InsuringAgreement a. We will pay medical expenses described as belowfor "bodilyinjury" causedby an accident: (1) On premises ownor renl; you (2) On waysnextto premises own or rent; you or (3) Because youroperations; of provided that: (1) The accident takesplacein the "coverage territory" duringthe poficyperiod; and (2) The expenses incunedand reported are to us withinone year of the date of the accident;and (3) The injured person submits examination, lo at our expense, physicians our choice by of as oflenas we reasonably require. b. We will make these paymentsregardless of fault.Thesepayments not exceedthe ap will plicable limitof insurance. will pay reasonWe able expenses for: (1) Firstaid administered the time of an at accident;

(2) Necessary medical, surgical, x-ray and dedental services,includingprosthetic vices:and (3) Necessary profesambulance, hospital, and services. nursing funeral sional 2. Exclusions We will not pay expenses "bodily injury": for a. Any Insured except"volunteer workers". To any insured, b. HiredPerson To a personhiredto do workfor or on behalfof or any insured a tenantof any insured. c. lnjuryOn NormallyOccupiedPremises To a personinjuredon that part of premises you own or rent that the personnormally occupies. d. WorkersGompensation And SimilarLaws person, To a whetheror not an "employee" of any insured, benefits the 'bodilyinju4/ are if for payable must be provided undera workers' or compensation disabilitybenefitslaw or a or similar law. e. Athletics Activities To a personinjuredwhiletakingpartin athlet ics. f. Products-Gompleted Operations Hazard "products-comSeted lncluded withinthe operationshazard". g. CoverageA Exclusions Excluded underCoverage A. h. War Dueto war, whetheror not declared, any act or or condition incident war. War includes to civil war, insurrection, rebellion revolution. or . SUPPLEMENTARY PAYMENTS COVERAGES A AND B 1. We will pay,with respect any claimwe investito gateor settle,or any "suit"against insured an we a. All expenses incur. we

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b. Up to $250for cost of bail bondsrequired becauseof accidents trafficlaw violations or arising out of the use of any vehicle whichthe to BodilyInjuryLiability Coverage applies. do We not haveto furnishthesebonds. c. The costof bondsto release attachments, but only for bond amounts withinthe applicable We limit of insurance. do not have to furnish thesebonds. d. All reasonable expenses incurred the inby suredat our requestto assistus in the investigationor defense the claimor "suit",includof ing actualloss of earnings to $250 a day up because timeoff from work. of e. All coststaxedagainst insured the"suit'. the in f. Prejudgmentinterest awarded against the insured that partof thejudgment pay.lf we on limitof we makean offerto pay the applicable we ininsurance, will not pay any prejudgment terest based on that periodof time afler the offer. g. All interest thefull amount anyjudgment on of that accruesafter entry of the judgmentand beforewe have paid,offeredto pay, or deposited in court the part of the judgmenlthat is within applicable of insurance. the limit Thesepayments not reduce limitsof insurwill the ance. 2. lf we defendan insured against "suit"and an a indemnitee the insured alsonamed a party of is as to the "suit",we will defendthat indemnitee all of if the following conditions mel: are a. The "suit"against indemnitee the seeksdamagesfor whichthe insured assumed lihas the ability the indemnitee a contract agreeof in or mentthat is an "insured contract": b. Thisinsurance applies suchliability to assumed by the insured; c. The obligation defend,or the cost of the to defenseof, that indemnitee, also beenashas sumed by the insuredin the same "insured contract": d. The allegations the "suit"and the information in we knowaboutthe "occurrencen suchthat are no conflictappears existbetween interto the ests of the insured and the interests the inof demnitee:

ask and e. The indemnitee the insured us to conof the ductand conlrol defense that indemnitee againstsuch "suit"and agreethat we can assign the same counselto defendthe insured and and the indemnitee; f. The indemnitee: (1) Agrees writing to: in (a) Cooperate with us in the investigation, "suit"; or settlement defenseof the (b) lmmediately of sendus copies any deor summonses legal mands,notices, papersreceivedin connection with the "suit"; (c) Notify otherinsurerwhose coverage any and to is available the indemnitee: (d) Cooperate to with us with respect coordinatingother applicableinsurance and available the indemnitee: to to: (2) Provides with writtenauthorization us (a) Obtainrecordsand other information related the'suit";and to (b) Conductand controlthe defenseof the in indemnitee such"suil". are met, attorSo long as the above conditions of incurred us in the defense that inby neys'fees incurred litigation expenses necessary demnitee, incurred litigation expenses by us and necessary will at by the indemnitee our request be paidas the Payments.Notwithstanding Supplementary provisions Paragraph | 2.b.l2l of Section - Covof DamageLierageA - BodilylnjuryAnd Property will ability,such payments not be deemedto be damage" inju4/ and "property for damages "bodily and will not reducethe limitsof insurance. indemnitee to Our obligation defendan insured's litigaand necessary and to payfor attorneys'fees Payments ends as tionexpenses Supplementary when: limitof insura. We haveused up the applicable ance in the paymentof judgmentsor settleor ments: set b. The conditions forthabove.or the termsof the agreement described in Paragraphf. above,are no longermet.

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Inc., O ISOProperties, 2000

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SECTION 1I-WHOIS AN INSURED 1. lf youare designated the Declarations in as: you and your spouseare ina. An individual, sureds,but only with respectto the conductof a business whichyou are the soleowner. of you are an inb. A partnership joint venture, or your partners, their sured.Your members, and spousesare also insureds,but only with respectto the conduct yourbusiness. of you c. A limited liability company, are an insured, Your members alsoinsureds, onlywith are but respectto the conductof your business. Your managers insureds, onlywith respect are but to theirduties yourmanagers. as joint d. An organization otherthan a partnership, you venture limited or liability company, are an insured.Your "executive officers"and directors but are insureds, only with respect theirduto ties as your officersor directors. Your stockholdersare also insureds, onlywith respect but to theirliability stockholders. as e. A trust,you are an insured. Your lrusleesare but to also insureds, onlywith respect theirduties as trustees. 2. Eachof the following alsoan insured: is "volunteer a- Your workers" onlywhileperforming dutiesrelatedto the conductof your business, or your "employees", other than eitheryour "executive (if officers" you are an organization joint otherthana partnership, venture limited or (if or liability company) )our managers you are a limitedliability company), only for acts but by withinthe scopeof theiremployment you or whileperforming dutiesrelated the conduct to of your business.However, none of these "employees" "volunteerworkers" are inor suredsfor: (1) "Bodilyinjury" "personal advertising or and injury": (a) To you,to yourpartners members (if or youare a partnership or.|oint venture), to yourmembers youarea limited (if liability company), a co-'employee" to while in the courseof his or her employment or performing dutiesrelatedto the conductof your business, to yourother or 'volunteerworkers"while performing dutiesrelatedto the conductof your business:

(b) To the spouse, brother or child,parent, sisterof thate"employee" or \olunteer of workef as a consequence Paragraph (1)(a) above; (c) For which there is any obligation to withor repaysomeone sharedamages of because elsewho mustpaydamages (1)(a) in the injury described Paragraphs or or (b) above; (d) Arisingout of his or her providing or health faifingto provideprofessional careservices. 'Property (2) to damage" property: (a) Owned,occupied used by, or (b) Rented in the care,custody control or to, controlis beof, or overwhich physical by ing exercised any purpose for 'volunteer "employees", you, any of your (if any or workers", partner member you are or a partnership jointventure), any memor liability company). ber(if you are a limited (other than your "employee" or b. Any person "volunteer while worker"), any organization or actingas your realestatemanager. temhavingproper or c. Any person organization porarycustodyof your property you die, but if only: out (1) With respect liability to arising of the and or maintenance use of that property; (2) Until your legal representative been has appointed. if d. Your legal representative you die, but only with respectto dutiesas such.That representativewill have all your rightsand dutiesunder Part. this Coverage "mobileequipment" registered in to With respect your name under any motorvehicleregistration law, any personis an insuredwhiledrivingsuch withyourperalonga publichighway equipment responmission. Any other personor organizalion of siblefor the conduct such personis alsoan inarising of out to sured,butonlywithrespect liability and of the operation theequipment, onlyif no other to insurance any kind is available that personor of no However, person or for organization this liability. to: with respect is organization an insured a. "Bodilyinju4/ to a co-"empoyee'ofthe person or the driving equipment; "Propertydamage" to property owned by, b. by rentedto, in the chargeof or occupied you or the employerof any personwho is an insuredunderthisprovision.

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you 4. Any organization newlyacquire form,other or joint or thana partnership, venture limited liability company, overwhichyou maintain and ownership or majority interest, qualify a NamedInsured will as if thereis no othersimilar insurance available to thatorganization. However: a. Coverage is only underthis provision afforded until the 90th day after you acquireor form the organization the end of the policyperiod, or whichever earlier; is b. Coverage does not applyto "bodilyinjury"or A "propertydamage"that occurredbeforeyou the acquired formed organization; or and "personal c. CoverageB does not applyto and advertising injury" arising out of an offense committed beforeyou acquired formedthe or organization. No personor organization an insuredwith respect is joint to the conduct any current pastpartnership, or of that is not shown venture limited liability company or as a Namedlnsuredin the Declarations. SECTION . LIMITSOF INSURANCE III shownin the Declarations 1. The Limitsof lnsurance and the rules belowfix the most we will pay regardless the numberof: of a. Insureds: b. Claims brought; or madeor "suits" c. Personsor organizations makingclaimsor "suits". bringing 2. The GeneralAggregate is the mostwe will Limit payfor the sum of: a. Medical expenses underCoverage C; b. Damagesunder Coverage exceptdamages A, because "bodilyinjury"or "property of damage" includedin the "products-completed operations hazard': and c. Damages B. underCoverage 3. The Products-Completed Operations Aggregate Limitis the mostwe will pay underCoverage for A damagesbecauseof "bodilyinjur/ and "property damage' includedin the "products-completed operationshazard". 4. Subjectto 2. above,the Personal and Advertising InjuryLimitis the mostwe will pay underCoverage B for the sum of all damages becauseof all "personal advertising inju4l sustiained any and by one person organization. or

the applies, whichever to 5. Subject 2. or 3. above, Limitis the mostwe will pay for EachOccurrence the sum of: A; a. Damages underCoverage and G expenses underCoverage b. Medical "bodilyinjury' and 'propertydamof because all age"arisingout of any one "occurrence". 6. Subjectto 5. above,the DamageTo Premises To Rented You Limitis the mostwe will payunder 'property A Coverage for damagesbecauseof whilerenledto you, lo damage" anyone premises, in the case of damageby fire, while rentedto or youor temporarily by occupied youwithpermission of the owner. 7. Subjectto 5- above,the MedicalExpenseLimit is the most we will pay under CoverageC for all of expenses because "bodilyinjury"susmedical tained anyone person. by Part apply of The Limitsof Insurance this Coverage to separately each conseortiveannualperiodand to period lessthan 12 months, starting of any remaining of with the beginning the policyperiodshownin the unless the policy periodis extended Declarations, periodof less than 12 for after issuance an additional months.In that case, the additionalperiodwill be periodfor purposes deemedpartof the last preceding the of of determining Limits Insurance. LIABILITY GENERAL SECTION - COMMERCIAL IV CONDITIONS 1. Bankruptcy or of Bankruptcy insolvency the insured of the or estatewill not relieveus of our obligainsured's Part. tionsunderthis Coverage 2. DutiesIn The Event Of Occurrenee,Offense, ClaimOr Suit a. You must see to it that we are notifiedas soon or of as practicable an "occurrence" an offense whichmay resultin a claim.To the extentposinclude: notice should sible, or (1) How,whenand wherethe "occurrence" offensetook place; (2) The namesand addresses any injured of persons witnesses; and and (3) The natureand locationof any injuryor or damagearisingout of the "occurrence" offense.

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b. lf a claimis madeor "suit"is brought against you any insured, must: (1) lmmediately recordthe specifics the of claimor "suit"and the date received; and (2) Notifyus as soonas practicable. You must see to it that we receivewrittennotice of the claimor "suit' as soon as practicable. c. You and anyotherinvolved insured must: (1) lmmediately send us copiesof any demands,notices, summonses legalpaor persreceived conneclion in withthe claim or "suit"i (2) Authorizeus to obtain recordsand other information: (3) Cooperate with us in the investigation or settlement the claimor defense of against the "suit": and (4) Assist us, upon our request, the enin forcement any rightagainst of or any person organization whichmay be liableto the insuredbecause injury damage which of or to thisinsurance alsoapply. may d. No insuredwill, exceptat that insured's own cost,voluntarily makea payment, assume any obligation, incurany expense, or otherthanfor our firstaid,without consent. 3. LegalActionAgainstUs No personor organization a rightunderthis has Coverage Part: a. To join us as a partyor othenryise us into bring a "suit" asking damages for froman insured; or b. To sue us on this Coverage Part unlessall of its termshavebeenfullycomplied with. A personor organization sue us to recover may on an agreed settlementor on a final judgment againstan insured;but we will not be liablefor damages are not payable that underthe termsof this CoveragePartor that are in excessof the applicable limitof insurance. agreedsettlement An meansa seftlement release liability and of signed by us, the insured and the claimanl the claimor ant'slegalrepresentative.

4. Otherlnsurance is insurance available lf othervalid and collectible to the insuredfor a loss we cover under CoverPart,our obligations agesA or B of thisCoverage as are limited follows: a. PrimaryInsurance whenb. below except is Thisinsurance primary our is lf applies. this insurance primary, obligationsare not affectedunlessany of the other Then,we willshare is insurance alsoprimary. by with all that other insurance the methoddescribedin c. below. b. Excesslnsurance is This insurance excessover: whetherpri(1) Any of the other insurance, or contingent on any other mary,excess, basis: (a) That is Fire, Extended Coverage, Risk Risk,Installation or similar Builde/s for coverage "yourwork"; for (b) That is Fire insurance premises occupied by to rented youor temporarily you with permission the owner; of purchased you to (c) That is insurance by cover your liability as a tenant for "property rented to to damage" premises by you or temporarily occupied youwith permission the owner; or of (d) lf the hss arisesout of the maintenance "autos" watercraft to or or useof aircraft, g. the extentnotsubjectto Exclusion of A Section| - Coverage - Bodilylnjury DamageLiabilitY. And Property availableto (2) Any other primaryinsurance you coveringliabilityfor damagesarising for or out of the premises operations which you havebeenaddedas an additionalinof suredby attachment an endorsement.

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Whenthis insurance excess, will haveno is we duty underCoverages or B to defendthe inA suredagainst "suit"if anyotherinsurer any has a dutyto defend insured the against that "suit". lf no otherinsurer defends, will undertake we to do so. but we will be entitled the insured's to rights against thoseotherinsurers. all When this insurance excessover other inis surance, will pay only our share of the we amountof the loss, if any, that exceedsthe sum of: (1) The totalamounl allsuchotherinsurthat ancewouldpayfor the lossin the absence of thisinsurance: and (2) The totalof all deductible self-insured and amounts underall thatotherinsurance. We will sharethe remaining loss,if any,with anyotherinsurance is notdescribed this that in Excess lnsurance provision and was not boughtspecifically apply in excessof the to Limits Insurance of shownin the Declarations of thisCoverage Part. c. MethodOf Sharing permits lf all of the otherinsurance contribution by equal shares,we will follow this method also.Underthisapproach eachinsurer contributesequalamounts untilit has paidits applicable limitof insurance noneof the loss reor mains. whichever comes first. lf any of the other insurance does not permit contribution equalshares, will contribute by we by limits.Underthis method, each insurer's shareis based the ratioof its applicable on limit of insurance the totalapplicable to limits inof surance all insurers. of 5. PremiumAudit a. We will computeall premiums this Coverfor age Part in accordance with our rules and rates. b. Premium shownin this Coverage Part as advancepremiumis a depositpremium only.At the close of each audit periodwe will compute the earnedpremium that period for and send notice the firstNamedlnsured. due date to The premiumsis the for audit and retrospective date shown as the due date on the bill. lf the paid sum of the advance and auditpremiums for the policyperiodis greaterthan the earned premium, will returnthe excessto the first we Namedlnsured. c. The first NamedInsuredmust keep recordsof the information needfor premiumcomputawe tion,and send us copiesat such timesas we may request.

6. Representations this By accepting policy,you agree: are in a. The statements the Declarations accurateand complete; are b. Thosestatements based upon representationsyou madeto us; and c. We have issuedthis policy in relianceupon yourrepresentations. Of 7. Separation Insureds and of to Except withrespect the Limits lnsurance, assignedin this any rightsor duties specifically this Partto the first NamedInsured, inCoverage surance applies: a. As if each Named Insured were the only and Namedlnsured: to b. Separately each insuredagainstwhomdaim is madeor "suit"is brought. 8. TransferOf Rights Of RecoveryAgainst Others To Us has rightsto recoverall or partof any lf the insured payment have madeunderthis Coverage Part, we to those rights are transferred us. The insured mustdo nothingafter loss to impairthem.At our "suit" or transfer request,the insuredwill bring thoserightsto us and helpus enforcethem. 9. When We Do Not Renew Part,we lf we decidenot to renewthis Coverage will mail or deliver to the first Named Insured written noticeof the shown in the Declarations nol nonrenewal less than 30 days beforethe expL rationdate. lf noticeis mailed,proofof mailingwill be sufficient proofof notice. SECTION DEFINITIONS V. 'Advertisement" meansa noticethat is broadcast 1. to or published the generalpublicor specificmaror aboutyour goods,products servket segments or ices for the purposeof attractingcustomers of For supporters. the purposes thisdefinition: a- Noticesthat are publishedinclude material placed the Internet on similar or electronic on and meansof communication: only that part of a webweb-sites, b. Regarding or site that is aboutyour goods,products servor of customers icesfor the purposes aftracting an is supporters considered advertisement. traileror semi2. "Auto"meansa land motorvehic,le, for trailerdesigned travelon publicroads,including or But "auto" any attaehedmachinery equipment. "mobile equipment". doesnotinclude

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O ISOProperties, Inc.,2000

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Case 1:06-cv-00097-JJF

Document 1-2

Filed 02/13/2006

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3. 'Bodilyinjury'meansbodilyinjury,sickness or including disease sustained a person, by deathrefromanyof theseat anytime. sulting "Coverage 4. territor/ means: a. The UnitedStatesof America(including its PuertoRico and territories and possessions), Canada: b. lnternational watersor airspace, only if the but occursin the course travel injuryor damage of between or transportation any placesincluded in a. above: or c. All otherpartsof the worldif the injury damor age arisesout of: (1) Goodsor products madeor sold by you in described a. above; in the territory (2) The activities a person of whosehomeis in the territory describedin a. above,but is awayfor a shorttime on yourbusiness; or "Personal (3) and advertising injury"offenses thattakeplacethrough lnternel simithe or pro lar electronic meansof communication vided the insured'sresponsibility pay to damagesis determined a "suit"on the in in described a. above merits, the territory in or in a settlement agreeto. we 5. "Employee' includes a "leased worker". "Employee" doesnotinclude "temporary a worker". 'Executive 6. office/'meansa person holding any of the officerpositions createdby yourcharter, congoverning stitution, by-laws any othersimilar or document. 7. "Hostile fire"meansone whichbecomes uncontrollable breaks from whereit was intended or out to be. property'' property, 8. "lmpaired meanstangible other than"yourproduct'or'yourwork",that cannolbe usedor is lessusefulbecause: "your product"or "your work" a. lt incorporates that is knownor thoughtto be defective, deficient, inadequate dangerous; or or b. You havefailed to fullillthe termsof a contract or agreementl if suchproperty can be restored use by: to a. The repair, replacement, adjustmentor reor movalof "yourproduct" "yourwork";or b. Your fulfillingthe terms of the contractor agreement.

9.

"lnsuredcontract" means: However, a. A contract a lease of premises. for of for that portion the contract a leaseof premor any isesthat indemnifies person organizawhilerented by tionfor damage fireto premises occupiedby you with to you or temporarily conpermission the owneris not an "insured of tract": agreement; b. A sidetrack exceptin or agreement, c. Any easement license opwith or connection construction demolition on erations or within50 feet of a railroad; to as d. An obligation, requiredby ordinance, in a except connection indemnify municipality, withworkfor a municipality: maintenance agreement; e. An elevator f. That part of any other contractor agreement (including inpertaining your business an to in of demnification a municipality connection under with work performed a municipality) for of which you assumethe tort liabifity anolher partyto payfor'bodily inju4/ or "property damTort age" to a third personor organization. lithatwouldbe imposed abilitymeansa liability by law in the absence of any contractor agreement. f. Paragraph does not includethat partof any or contract agreement: (1) That indemnifres railroad "bodilyinjury'' for a or "property damage' arisingout of conwithin50 or operations, struction demolition feet of any railroadpropertyand affecting any railroadbridgeor trestle,tracks,roador beds,tunnel,underpass crossing; (2) That indemnifies architect, engineer or an out for surveyor injuryor damagearising of: (a) Preparing, or approving, failingto prepareor approve, maps,shopdrawings, field orders, opinions, reports,surveys, and specifichangeordersor drawings cations: or (b) Givingdirections instructions, failor or ing to give them, if that is the primary or causeof the injuryor damage; (3) Underwhich the insured,if an architect, for assumesliability engineer surveyor, or an injuryor damagearisingout of the insured'srendering failureto renderproor thoselistedin fessional services, including (2) aboveand supervisory, arinspection, activities. chitectural engineering or

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Case 1:06-cv-00097-JJF

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Filed 02/13/2006

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1 0 . "Leased worker"meansa person leasedto you by firm between a laborleasing underan agreement you and the laborleasing firm,lo perform duiies "Leased related the conduct your business. to of worker" doesnotinclude "lemporary a worker". "Loading unloading" '|.1, meansthe handling of or property: a. After it is movedfrom the placewhere it is into accepted movement or ontoan aircraft, for or watercraft "auto"; watercraft or b. While it is in or on an aircraft. "aulo";or froman aircrafi, waterc. Whileit is beingmoved craftor "auto"to the olacewhereit is finallvdelivered; but 'loadingor unloading" does not includethe by movement property meansof a mechanical of device,other than a hand truck,that is not at watercraft "auto". or tachedto the aircraft, "Mobileequipment" 12. meansany of the following typesof landvehicles, including attached any ma' chinery equipment: or farm machinery, forkliftsand other a. Bulldozers, for vehicles designed use principally public off roads: b. Vehicles maintained use solelyon or nextto for premises own or rent; you c. Vehicles travel crawler that on treads; whether self-propelled not, maind. Vehicles, or tainedprimarily provide to mobility permato nentlymounted: (1) Power shovels, cranes, loaders, diggers or drills: or (2) Roadconstruction resurfacing or equipment suchas graders, scrapers rollers; or e. Vehicles described a., b., c. or d. above not in that are not self-propelled are maintained and primarily provide to mobility permanently to atof types: tachedequipment the following (l) Air compressors, pumps andgenerators, including spraying, welding, building cleaning,geophysical exploration, lighting and wellservicing equipment; or (2) Cherry pickers similar and devices usedto raiseor lowerworkers:

in not f. Vehicl