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2018/19 Earthquake Insurance Policy BreakdownBINDER ISSUED: 06 -Feb -2018 Terra Mullins AmWINS Insurance Brokerage of California - Santa Ana, CA 1551 N Tustin Ave Ste 700 Santa Ana, CA 92705-8636 BINDER We are pleased to offer the following Binder for the above captioned account as per the quotation dated 06 -Feb -2018. Policy Number: W14D19180501 Renewal of: W14D19170401 Insurer: Syndicate 2623/623 at Lloyd's. Beazley Lloyd's Syndicate 2623 - 82% Beazley Lloyd's Syndicate 623 - 18% Unique Market Reference: B6012BUSA18 Insured's Name: City of La Quinta Insured's Address: 78-495 Calle Tampico La Quinta, CA 92253 Location(s): 78-495 Calle Tampico La Quinta, CA 92253 As per schedule on file with Underwriter Policy Period: From: 07 -Feb -2018 To: 07 -Feb -2019 Both dates at 12:01 a.m. Standard Time at the Insured's Address Limit Peril(s) Coverage(s) $10,000,000 Each Occurrence Earthquake Real Property and in the Annual Aggregate in Personal Property respect of Earthquake Valuable Papers Electronic Data Processing Media Business Income Extra Expense Rental Income Ordinance or Law - Undamaged Portion (Cov A) Location: All/All $2,500,000 Sub -Limit Ordinance or Law - Demolition (Cov B) and Increased Cost of Construction (Cov C) combined Location: All/All 1321634_1 Page 1 of 3 Deductible Peril(s) 5.00 % Values Per Unit of Insurance Earthquake $25,000 Minimum Per Occurrence Coinsurance Valuation Coverage(s) Nil Replacement Cost Real Property Personal Property Nil Actual Loss Sustained Business Income Extra Expense Rental Income Total Insurable Value: $70,475,172 Premium: $98,700 Min. Earned Prem.%: 25 T. R.I.A.: Declined Inspection Fees: $0 Binder Comments: Contingent Tax Revenue Endorsement included as expiring. Business Income includes Bond Rental Income. Conditions: Ordinance or Law coverage included for loss to the undamaged portion of the Building (Cov A) within the limit of insurance applicable to Real Property (FS C 488). FS C 494: Optional Valuation, Section 9. is amended to show Replacement Cost applies to Real Property and Personal Property. FS C 494: Limits of Insurance , Section 7. Item B. is deleted in it's entirety. Forms and Endorsements Effective at Inception: LMA3102A Lloyd's Certificate (amended) FS C 422 01 13 General Cover Declarations Page FS C 426 12 12 Supplemental Declarations Page FS C 424 Schedule of Forms and Endorsements FS C 494 05 17 Beazley Earthquake Policy FS C 493 10 12 Statement of Deductible for Earthquake and/or Flood if Covered By This Policy FS C 513 06 13 Time Element Endorsement to Beazley Earthquake Policy USES0114-004 Contingent Tax Revenue Interruption Extension FS C 488 10 12 Ordinance or Law Endorsement FS C 500 10 12 Valuable Papers and Records Extension LSW1135B Lloyd's Privacy LMA3100 Sanction Limitation and Exclusion Clause LMA5219 TRIA Not Purchased Clause COMMISSION PERCENTAGES SHOWN ARE FOR DIRECT COMMISSION ONLY AND DO NOT INCLUDE ANY APPLICABLE CONTINGENT .COMMISSION OR OTHER FORMS OF COMPENSATION. 1321634_1 Page 2 of 3 THIS RISK IS BOUND ON THE BASIS SHOWN ABOVE. IT DOES NOT NECESSARILY PROVIDE THE TERMS AND/OR COVERAGES REQUESTED. WE ARE NOT RESPONSIBLE FOR INACCURACIES ABOUT WHICH THE INSURED DOES NOT NOTIFY US OF IMMEDIATELY. THIS BINDER WILL BE TERMINATED AND SUPERSEDED UPON DELIVERY OF THE FORMAL POLICIES OR CERTIFICATES ISSUED TO REPLACE IT. IF THERE IS ANY CONFLICT BETWEEN THE TERMS AND CONDITIONS OF THIS BINDER AND THE TERMS AND CONDITIONS OF THE POLICY (OR CERTIFICATE), WHEN ISSUED, THE TERMS AND CONDITIONS OF THE POLICY (OR CERTIFICATE) SHALL GOVERN. THE SURPLUS LINES INSURERS (CERTAIN UNDERWRITERS AT LLOYD'S, LONDON) WITH WHICH THE COVERAGE IS BEING QUOTED ARE NOT LICENSED TO DO INSURANCE BUSINESS IN THIS STATE AND ARE NOT SUBJECT TO SUPERVISION BY THIS STATE. IN THE EVENT OF THE INSOLVENCY OF A SURPLUS LINES INSURER, LOSSES WILL NOT BE COVERED BY ANY STATE INSOLVENCY FUND. IF THIS QUOTE IS BOUND, THE POLICY MAY NOT BE SUBJECT TO ALL OF THE REGULATIONS OF THE SUPERINTENDENT PERTAINING TO RATES AND POLICY FORMS. ErLck ja Beazley Insurance Services CA License Number OG55497 725 S. Figueroa Street, Suite 2050 Los Angeles, CA 90017 1321634_1 Page 3 of 3