2017/18 Earthquake Ins Quote from Beazleyi
PH. 800.593.6250
PH. 760.404.1530
Fx. 760.404.1548
HAYWARD TILTON & ROLAPP
Insurance Associates, Inc.
JULIANNE J. SPRIGGS, CISR, CRIS
Account Executive
EXT. 1531
julies®htrinsure.com
website: www.htrinsure.com
license #0614365
77-530 ENFIELD LANE, BUILDING D-2, PALM DESERT, CA 92211
PH. 800.593.6250
PH. 760.346.0075
CL. 760.668.0039
Fx. 760.346.2248
HAYWARD TILTON 8c ROLAPP
Itsurance Associates, IIIc.
RAY SNITIL
Associate
EXT. 1533
e-mail: rays@htrinsure.com
website: www.htrinsure.com
license #0614365
_b(
QUOTE ISSUED: 11 -Jan -2017 03:51 PM This quote will remain in effect until 07 -Feb -2017
Terra Mullins
AmWINS Insurance Brokerage of California - Santa Ana, CA
1551 N Tustin Ave Ste 700
Santa Ana, CA 92705-8636
In accordance with your request for a proposal and based on the information submitted, we are
pleased to offer the following quote.
Insurer: Syndicate 2623/623 at Lloyd's.
Beazley Lloyd's Syndicate 2623 - 82%
Beazley Lloyd's Syndicate 623 - 18%
Insured's Name: City of La Quinta
Location(s): 78-495 Calle Tampico
La Quinta, CA 92253
As per schedule on file with Underwriter
Policy Period: From: 07 -Feb -2017
To: 07 -Feb -2018
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
Occurrence
Electronic Data Processing
Media
Business Income
Extra Expense
Rental Income
Ordinance or Law
$2,500,000 Sub -Limit Ordinance or Law - Demolition
(Cov B) and Increased Cost of
Construction (Cov C)
combined
Deductible Perils
Coverage(s)
5.00 % Values Per Unit of Earthquake
Real Property
Insurance
Personal Property
$25,000 Minimum Per
Valuable Papers
Occurrence
Electronic Data Processing
Media
Business Income
Extra Expense
Rental Income
Ordinance or Law
Coinsurance Valuation Coverage(s)
Nil Replacement Cost Real Property
Personal Property
1321105_2 Page 1 of 3
Coinsurance Valuation Coverage(s)
Nil Actual Loss Sustained Business Income
Extra Expense
Total Insurable Value: $55,135,000
Premium: $78,000
Min. Earned Prem.%: 25%
T.R.I.A.*: $5,850 + Taxes and Fees
Inspection Fees: $0
*Optional Coverages must be either elected for the additional premium listed or declined at the time
of binding.
Quote Comments: USES0114: Contingent Tax Revenue Endorsement
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 513: Business Income includes Bond Rental Income - Business Income
from Dependent Properties
Forms and Endorsements Effective at Inception:
LMA3102(amended) Lloyd's Certificate
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 08 14
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
LMA5219
TRIA Not Purchased Clause
LMA5218
TRIA Purchased Clause
COMMISSION PERCENTAGES SHOWN ARE FOR DIRECT COMMISSION ONLY AND DO NOT INCLUDE
ANY APPLICABLE CONTINGENT COMMISSION OR OTHER FORMS OF COMPENSATION.
THIS QUOTATION IS BEING OFFERED ON THE BASIS SHOWN ABOVE. IT DOES NOT NECESSARILY
PROVIDE THE TERMS AND/OR COVERAGES REQUESTED IN YOUR SUBMISSION. THIS PROPERTY
QUOTE IS VALID FOR THIRTY (30) DAYS.
THIS QUOTE IS BASED ON INFORMATION PROVIDED PER YOUR SUBMISSION AND IS STRICTLY
CONDITIONED ON NO MATERIAL CHANGE IN THE RISK OCCURRING BETWEEN THE DATE OF THIS
QUOTE AND THE INCEPTION DATE OF THE PROPOSED POLICY. IN THE EVENT OF SUCH A CHANGE IN
RISK, THE INSURER MAY, IN ITS SOLE DISCRETION, WHETHER OR NOT THIS QUOTE HAS ALREADY
BEEN ACCEPTED BY THE INSURED, MODIFY AND/OR WITHDRAW THIS QUOTE.
THE SURPLUS LINES INSURERS (CERTAIN UNDERWRITERS AT LLOYD'S, LONDON) WITH WHICH THE
1321105_2 Page 2 of 3
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.
THIS QUOTE IS CONTINGENT UPON PROPER SURPLUS LINES BROKER LICENSURE IN THE INSURED'S
HOME STATE. COVERAGE WILL NOT BE BOUND IF LICENSURE REQUIREMENTS ARE NOT MET.
ADDITIONAL INFORMATION CAN BE FOUND UNDER BROKER ACCESS/FAQ AT BEAZLEY.COM.
NO COVER GIVEN
FULL TERMS AND CONDITIONS NOT ENCLOSED, THESE TERMS ARE FOR QUOTATION PURPOSES
ONLY
Frizlja hnkel
Beazley Insurance Services
CA License Number OG55497
725 S. Figueroa Street, Suite 2050
Los Angeles, CA 90017
t: (818)409-3474
c: (818)389-7320
e: erich.jahnke@beazley.com
1321105_2 Page 3 of 3
POLICYHOLDER DISCLOSURE
NOTICE OF TERRORISM
INSURANCE COVERAGE
You are hereby notified that under the Terrorism Risk Insurance Act of 2002, as amended ('TRIA'), that you now
have a right to purchase insurance coverage for losses arising out of facts of terrorism, as defined in Section
102(1) of the Act, as amended: The term "act of terrorism" means any act that is certified by the Secretary
of the Treasury, in consultation with the Secretary of Homeland Security and the Attorney General of the
United States, to be an act of terrorism; to be a violent act or an act that is dangerous to human life, property,
or infrastructure; to have resulted in damage within the United States, or outside the United States in the case
of an air carrier or vessel or the premises of a United States mission; and to have been committed by an
individual or individuals, as part of an effort to coerce the civilian population of the United States or to
influence the policy or affect the conduct of the United States Government by coercion. Any coverage you
purchase for "acts of terrorism" shall expire at 12:00 midnight December 31, 2020,the date on which the TRIA
Program is scheduled to terminate, or the expiry date of the policy whichever occurs first, and shall not cover
any losses or events which arise after the earlier of these dates.
YOU SHOULD KNOW THAT COVERAGE PROVIDED BY THIS POLICY FOR LOSSES CAUSED BY CERTIFIED ACTS OF
TERRORISM IS PARTIALLY REIMBURSED BY THE UNITED STATES UNDER A FORMULA ESTABLISHED BY FEDERAL
LAW. HOWEVER, YOUR POLICY MAY CONTAIN OTHER EXCLUSIONS WHICH MIGHT AFFECT YOUR COVERAGE, SUCH
AS AN EXCLUSION FOR NUCLEAR EVENTS. UNDER THIS FORMULA, THE UNITED STATES PAYS 85% THROUGH 2015;
84% BEGINNING ON JANUARY 1, 2016; 83% BEGINNING ON JANUARY 1, 2017; 82% BEGINNING ON JANUARY 1,
2018; 81% BEGINNING ON JANUARY 1, 2019 AND 80% BEGINNING ON JANUARY 1, 2020; OF COVERED TERRORISM
LOSSES EXCEEDING THE STATUTORILY ESTABLISHED DEDUCTIBLE PAID BY THE INSURER(S) PROVIDING THE
COVERAGE. YOU SHOULD ALSO KNOW THAT THE TERRORISM RISK INSURANCE ACT, AS AMENDED, CONTAINS A
USD100 BILLION CAP THAT LIMITS U.S. GOVERNMENT REIMBURSEMENT AS WELL AS INSURERS' LIABILITY FOR
LOSSES RESULTING FROM CERTIFIED ACTS OF TERRORISM WHEN THE AMOUNT OF SUCH LOSSES IN ANY ONE
CALENDAR YEAR EXCEEDS USD100 BILLION. IF THE AGGREGATE INSURED LOSSES FOR ALL INSURERS EXCEED
USD100 BILLION, YOUR COVERAGE MAY BE REDUCED.
THE PREMIUM CHARGED FOR THIS COVERAGE IS PROVIDED BELOW AND DOES NOT INCLUDE ANY CHARGES FOR
THE PORTION OF LOSS COVERED BY THE FEDERAL GOVERNMENT UNDER THE ACT.
12 January 2015
I hereby elect to purchase coverage for acts of terrorism for a prospective premium of
USD $5,850
1 hereby elect to have coverage for acts of terrorism excluded from my policy. I
understand that I will have no coverage for losses arising from acts of terrorism.
Policyholder/ Applicant's Signature
AFB 2623 / AFB 623 Syndicate on behalf of
certain underwriters at Lloyd's
TBD
Print Name
Policy Number
Date
12 January 2015
POLICY NUMBER:
Certificate
of
Beazley Insurance Services
101 California St Ste 1850
San Francisco CA 94111
U.S.A.
CA License #OG55497
(hereinafter called "Correspondent")
Evidencing Placement of Insurance with certain
UNDERWRITERS AT LLOYD'S, LONDON
COMMERCIAL PROPERTY
LMA3102(amended)
Correspondent hereby certifies that insurance as described herein has been effected with certain Underwriters
at Lloyd's, London.
NOTICE:
1. THE INSURANCE POLICY THAT YOU HAVE PURCHASED IS BEING ISSUED BY AN
INSURER THAT IS NOT LICENSED BY THE STATE OF CALIFORNIA. THESE
COMPANIES ARE CALLED "NONADMITTED" OR "SURPLUS LINE" INSURERS.
2. THE INSURER IS NOT SUBJECT TO THE FINANCIAL SOLVENCY REGULATION AND
ENFORCEMENT THAT APPLY TO CALIFORNIA LICENSED INSURERS.
3. THE INSURER DOES NOT PARTICIPATE IN ANY OF THE INSURANCE GUARANTEE
FUNDS CREATED BY CALIFORNIA LAW. THEREFORE, THESE FUNDS WILL NOT
PAY YOUR CLAIMS OR PROTECT YOUR ASSETS IF THE INSURER BECOMES
INSOLVENT AND IS UNABLE TO MAKE PAYMENTS AS PROMISED.
4. THE INSURER SHOULD BE LICENSED EITHER AS A FOREIGN INSURER IN
ANOTHER STATE IN THE UNITED STATES OR AS A NON-UNITED STATES (ALIEN)
INSURER. YOU SHOULD ASK QUESTIONS OF YOUR INSURANCE AGENT,
BROKER, OR "SURPLUS LINE" BROKER OR CONTACT THE CALIFORNIA
DEPARTMENT OF INSURANCE AT THE FOLLOWING TOLL-FREE TELEPHONE
NUMBER 1-800-927-4357. ASK WHETHER OR NOT THE INSURER IS LICENSED AS
A FOREIGN OR NON-UNITED STATES (ALIEN) INSURER AND FOR ADDITIONAL
INFORMATION ABOUT THE INSURER. YOU MAY ALSO CONTACT THE NAIC'S
INTERNET WEB SITE AT WWW.NAIC.ORG.
5. FOREIGN INSURERS SHOULD BE LICENSED BY A STATE IN THE UNITED STATES
AND YOU MAY CONTACT THAT STATE'S DEPARTMENT OF INSURANCE TO
OBTAIN MORE INFORMATION ABOUT THAT INSURER.
6. FOR NON-UNITED STATES (ALIEN) INSURERS, THE INSURER SHOULD BE
LICENSED BY A COUNTRY OUTSIDE OF THE UNITED STATES AND SHOULD BE ON
LMA3102 (amended) Page 1 of 6
THE NAIC'S INTERNATIONAL INSURERS DEPARTMENT (IID) LISTING OF
APPROVED NONADMITTED NON-UNITED STATES INSURERS. ASK YOUR AGENT,
BROKER, OR "SURPLUS LINE" BROKER TO OBTAIN MORE INFORMATION ABOUT
THAT INSURER.
7. CALIFORNIA MAINTAINS A LIST OF APPROVED SURPLUS LINE INSURERS. ASK
YOUR AGENT OR BROKER IF THE INSURER IS ON THAT LIST, OR VIEW THAT LIST
AT THE INTERNET WEB SITE OF THE CALIFORNIA DEPARTMENT OF INSURANCE:
WWW.INSURANCE.CA.GOV.
8. IF YOU, AS THE APPLICANT, REQUIRED THAT THE INSURANCE POLICY YOU
HAVE PURCHASED BE BOUND IMMEDIATELY, EITHER BECAUSE EXISTING
COVERAGE WAS GOING TO LAPSE WITHIN TWO BUSINESS DAYS OR BECAUSE
YOU WERE REQUIRED TO HAVE COVERAGE WITHIN TWO BUSINESS DAYS, AND
YOU DID NOT RECEIVE THIS DISCLOSURE FORM AND A REQUEST FOR YOUR
SIGNATURE UNTIL AFTER COVERAGE BECAME EFFECTIVE, YOU HAVE THE
RIGHT TO CANCEL THIS POLICY WITHIN FIVE DAYS OF RECEIVING THIS
DISCLOSURE. IF YOU CANCEL COVERAGE, THE PREMIUM WILL BE PRORATED
AND ANY BROKER'S FEE CHARGED FOR THIS INSURANCE WILL BE RETURNED
TO YOU.
Such insurance has been placed in accordance with the limited authorization granted to the Correspondent by
certain Underwriters at Lloyd's, London, whose syndicate numbers and the proportions underwritten by them
can be ascertained from the office of the said Correspondent (such Underwriters being hereinafter called
*'Underwriters") and in consideration of the premium specified herein, Underwriters have agreed to bind
themselves severally and not jointly each for his own part and not one for another, their Executors and
Administrators.
The Assured is requested to read this Certificate and if it is not correct, return it immediately to the
Correspondent for appropriate alteration.
LMA3102 (amended) Page 2 of 6
SLC -3 (COR) California - LMA3102(amended)
CERTIFICATE PROVISIONS
1. Signature Required. This Certificate shall not be valid unless signed by the Correspondent on the attached Declaration Page.
2. Correspondent Not Insurer. The Correspondent is not an Insurer of the insurance described herein and neither is nor shall be
liable for any loss or claim whatsoever. The Insurers of such insurance are those Underwriters at Lloyd's, London, whose names can
be ascertained as hereinbefore set forth. As used in this Certificate "Underwriters" shall be deemed to include incorporated as well as
unincorporated persons or entities that are Underwriters at Lloyd's, London.
3. Cancellation. If the insurance described herein provides for cancellation and if said insurance is cancelled after the inception date,
earned premium must be paid for the time the insurance has been in force.
4. Service of Suit Clause. In the event of the failure of Underwriters to pay any amount claimed to be due under the insurance
described herein, Underwriters have agreed that, at the request of the Assured, they will submit to the jurisdiction of a Court of
competent jurisdiction within the United States. Nothing in this Clause constitutes or should be understood to constitute a waiver of
Underwriters' rights to commence an action in any Court of competent jurisdiction in the United States, to remove an action to a
United States District Court, or to seek a transfer of a case to another Court as permitted by the laws of the United States or of any
State in the United States. In any suit instituted against any one of them upon the insurance described herein, Underwriters have
agreed to abide by the final decision of such Court or of any Appellate Court in the event of an appeal.
Underwriters have further agreed that service of process in such suit may be made upon FLWA Service Corp, clo Foley & Lardner
LLP, 555 California Street, Suite 1700, San Francisco, CA 94104-1520. Underwriters have agreed that such firm or person is
authorized and directed to accept service of process on behalf of Underwriters in any such suit and/or upon the request of the
Assured to give a written undertaking to the Assured that they will enter a general appearance upon Underwriters' behalf in the event
that such a suit shall be instituted.
Further, pursuant to any statute of any state, territory or district of the United States which makes provision therefor, Underwriters
have designated the Superintendent, Commissioner or Director of Insurance or other officer specified for that purpose in the statute,
or his successors in office, as their true and lawful attorney upon whom may be served any lawful process in any action, suit or
proceeding instituted by or on behalf of the Assured or any beneficiary arising out of the insurance described herein, and have
designated the above-mentioned as the person to whom the said officer is authorized to mail such process or true copy thereof.
5. Assignment. The insurance described herein shall not be assigned either in whole or in part without the written consent of the
Correspondent endorsed hereon.
6. Attached Conditions Incorporated. The insurance described in this Certificate is subject to all provisions, conditions and
warranties set forth herein, attached, or endorsed, all of which are to be considered incorporated herein as further descriptive of the
insurance the placement of which is evidenced by this Certificate.
7. Short Rate Cancellation. If the attached provisions provide for cancellation, the table below will be used to calculate the short
rate proportion of the premium when applicable under the terms of cancellation. Premiums for cancellations pursuant to
Paragraph 6 of the Notice on page 1 of this Certificate will be prorated.
Short Rate Cancellation Table For Term of One Year.
Rules applicable to insurance with terms less than or more than one year:
A. If insurance has been in force for one year or less, apply the short rate table for annual insurance to the full annual premium
LMA3102 (amended) Page 3 of 6
Per Cent
Days
Per Cent
Days
Per Cent
Days
Per Cent
Days
of one year
Insurance in
of one year
Insurance in
of one year
Insurancein
of one year
Insurance in
Premium
Force
Premium
Force
Premium
Force
Premium
Force
1 ----------------- .__.`..----
5%
66- 69............. .......................29%
154-156 .... .... . .. .......
. ...... ____53%
256 - 260......................77%
2 ...................................
6
70- 73 ...................................30
157 -160.... -
261-264 . . .. ...... ...... ..
..... 78
3- 4 .............. .............
::..... 7
74- 76 ........ ............
.... _.......... 31
161-164 .........................
55
265-269 .........................
.
5- 6 --- .......................
...._. 8
77- 80 ....................................32
165 -167.-._._ ................
:........... 56
270-273(9
7- 8....... • .....-_
.............. 9
81 - 83....................................33
168 -171.. -..... --...........
...........57
274-278 .................................
81
9- 10........ _..........
....10
84- 87 - ..................................
34
172 -175..».. ......... .........
• ......58
279-282 .............. .................
82
11- 12 --------- _.............._
------ 11
88- 91(3 mos) .........
.......... 35
176-1M.....-....-....._......
...... ..59
283-287 ....................... .........83
13- 14 .................................12
92- 94 .... .........................
......36
179 -1a2 (6 mos) ....__.....-.,...
60
288-291 ...........................
84
15- 16-------------- ____13
95- 98 ....................................37
183-187
..61
292-296 ..... .......... ...............
115
17- 18-•-•-•- ........................14
99-102 ..... ..................
........... 38
188-191 ..........
62
297 - 301 ... - ............................
86
19- 20..........--._...._..--.
.... _15
103-105. .... .........................39
192-196 - ---...--...-........-.......-...-63
302 - 305 (10 mos) .--.---....-....87
21- 22.-_----•--•--------....._---16
106-109 ..................:.:..............40
197-200 ............... _.._..._
......... 64
306-310...................,.: ...........
88
23- 25 ........ .............
_.......--17
110-113 __ ......................41
201-205 ............ ___
... ....... 65
311 -314.........._....:,........:..89
26- 29.__ ........ . .........
. .... —18
114-116 ............. -......_.............42
206-209.._....-... .................
... 66
315-319 ....... ............... ..
..90
30- 32 (1 mos) .................19
117-120 ............. - .....................
43
210-214(7 mos)...
... ............ 67
320-323 ................. ...............
91
33- 36 -------- -..--:....
_........... 20
121 -124 ( 4 mos ) ....................44
215-218,-__ .........
.......... M
324-328 __ ..................
_92
37- 40, ...:......:.... »
.............. 21
125-127 ....................................
45
219 - 223.._..... .........................
.69
329-332 .................................
93
41- 43-......,__ ...................22
128-131 ............
224. 228_.._...............,.............70
333-337 ( 11 mos ).._............94
44- 47 ................
............. 23
132-135 ........ ...........................
47
229-232--..-__ ... ............
.......... 71
338-342...-..... ........... .............
95
48- 51_ .................._......_-.-24
136.138 ........... -.:.....
................ 48
233-237..-.. ........... _.....
..:..::.....72
343-346-..-.... ...... .... .............
96
52- 54 ...... _...........
_ x._..25
139.142 ....................................49
238-241_ ..... ..... _.........
.___..73
347-351 ................ ................
97
55- 58. ...............................26
143-146 .............. ....................
50
242 - 246 ( 8 mos ) ..................
74
352-355 ........................
98
59- 62 (2 mos) _......
_.......27
147-149 .............. .....................
51
247-250.-.-................................I$
356-360 .......... .......................99
63- 65 _......... _ .............„.x..26
160-153(5 mos)....
_, ..52
251 - 255......__.._: .....:„,.,._..76
361 - 365 ( 12 mos )................100
Rules applicable to insurance with terms less than or more than one year:
A. If insurance has been in force for one year or less, apply the short rate table for annual insurance to the full annual premium
LMA3102 (amended) Page 3 of 6
determined as for insurance written for a term of one year.
B. If insurance has been in force for more than one year:
1. Determine full annual premium as for insurance written for a term of one year.
2. Deduct such premium from the full insurance premium, and on the remainder calculate the pro rata earned premium on the
basis of the ratio of the length of time beyond one year the insurance has been in force to the length of time beyond one year for
which the policy was written.
3. Add premium produced in accordance with items (1) and (2) to obtain earned premium during full period insurance has been in
force.
8. The Certificate is intended for use as evidence of the placement of the insurance described herein, in accordance with Section 1764
of the California Insurance Code.
9. It is hereby understood and agreed that wherever the word "Policy" appears herein it shall be deemed to read "Certificate"
10. Cancellation. Notwithstanding any cancellation provisions within this Certificate it is hereby noted and agreed that should a minimum
earned premium percentage be shown in the declarations of this Certificate, then the Underwriters shall retain as a minimum such
percentage of premium stated.
11. Complaints Procedure. If you have a complaint with any aspect of your policy with Lloyd's Underwriters: You may contact the
broker/agent who arranged your policy for you. Should you be dissatisfied with the outcome of your broker's resolution, please submit
your written complaint to:
Beazley USA Services Inc.
141 Tremont Street — Suite 1200,
Boston
MA 02111
U.S.A.
12. Law and Jurisdiction. This Insurance shall be governed by the laws of California and subject to the exclusive jurisdiction of the courts
of USA per the Service of Suit Clause contained herein.
13. Conformity to statue. Any terms of this Certificate which may conflict with applicable statutes (or statutes deemed applicable by a court
of competent jurisdiction) are amended to conform with the minimum requirements of such statutes.
14. Conformity. It is hereby noted and agreed that wherever the words "Assured" and "Insured" appear in this Certificate they shall be
deemed to be synonymous.
It is hereby noted and agreed that wherever the words "Underwriters", "Insurers," "Company" appear in this Certificate they shall be
deemed to be synonymous
It is hereby noted and agreed that wherever the term "we", "us" and "our" appears herein, same shall be deemed to read "Insurers"
It is hereby noted and agreed that wherever the term "you" or'your"appears herein, same shall be deemed to read "the Insured"
Insurance is effective with certain UNDERWRITERS AT LLOYD'S, LONDON
percentage: 100%
LMA3102 (amended) Page 4 of 6
LLOYDS SECURITY SCHEDULE
Syndicate 2623 82%
Syndicate 623 18%
LMA3102 (amended) Page 5 of 6
LLOYD'S
One Lime Street London EC3M 7HA
LMA3102 (amended) Page 6 of 6
POLICY NUMBER: COMMERCIAL PROPERTY
FS C 494 08 14
BEAZLEY EARTHQUAKE POLICY
(hereinafter the "Policy")
1. INSURING CLAUSE
Subject to its terms, exclusions, limitations and conditions, this Policy insures against direct physical loss or
damage caused directly by the peril of Earthquake (as defined below). All such losses must commence
during the Policy Period stated in the Declaration Page attaching to and forming part of this Policy (referred to
herein as the "Declaration").
2. PROPERTY INSURED
Except for property excluded elsewhere in this Policy, this Policy insures real and business personal property
owned by the Insured, including improvements and betterments the Insured has an interest in, all to the
extent the location, description and value of such property is shown in the Declaration and has been declared
to and agreed by the Underwriters prior to being insured under this Policy (referred to herein as the "Property
Insured").
3. SUM INSURED
This Policy shall not cover for more than the Limit of Liability stated in the Declaration in respect of each Loss
Occurrence, nor for more than any annual aggregate amount(s) stated in the Declaration in respect of
specified causes.
4. DEDUCTIBLE(S) AND SUB-LIMIT(S)
Each Loss Occurrence shall be adjusted separately, and from the amount of each adjusted Loss Occurrence
the applicable deductible (as set out in the statement of deductible attached to and forming part of this policy)
shall be deducted and any sub-limit(s) applied.
5. EXCLUDED CAUSES OF LOSS
This Policy does not insure against any loss or damage, directly or indirectly caused by, or which is
contributed to by the following regardless of any other cause or event contributing concurrently or in any
other sequence thereto:
a. Earth Movement, as defined herein, except Earth Movement ensuing as a direct result of
Earthquake;
b. Flood
C. collapse;
d. sprinkler leakage;
e. wear, tear or gradual deterioration, wet rot or dry rot, spoilage, decay or decomposition, cracking,
settling, shrinking or expansion in buildings, structures or foundations, corrosion or rust, erosion,
leakage, any other gradually occurring loss;
f. inherent vice or latent defect;
g. mold, mildew, fungus, spores or other microorganism of any type, nature or description, including
but not limited to any substance whose presence poses an actual or potential threat to human
FS C 494 08 14 Page 1 of 9
health;
war, invasion, acts of foreign enemies, hostilities (whether war be declared or not), civil war,
rebellion, revolution, insurrection, military or usurped power, martial law, or warlike operations;
confiscation, requisition, detention, legal or illegal occupation, embargo, quarantine, or any result
of any order of public or government authority, which deprives the Insured of the use or value of
the Property Insured, nor for loss or damage arising from acts of contraband or illegal
transportation or illegal trade;
enforcement of any ordinance or law regulating the use, reconstruction, repair or demolition of
any Property Insured;
k. any loss, damage, costs, expenses, fine or penalty which is incurred, or sustained by or imposed
on the Insured at the order of any governmental agency, court, or other authority arising from any
cause whatsoever;
I. terrorism;
M. actual or threatened malicious use of pathogenic or poisonous biological or chemical materials;
n. nuclear reaction, nuclear radiation or radioactive contamination;
o. any kind of seepage or any kind of pollution and/or contamination, or threat thereof, whether or
not caused by or resulting from a peril insured or from steps or measures taken in connection with
the avoidance, prevention, abatement, mitigation, remediation, clean-up or removal of such
seepage or pollution and/or contamination or threat thereof; as used herein the term "any kind of
seepage or any kind of pollution and/or contamination" includes (but is not limited to):
seepage of, or pollution and/or contamination by, anything, including but not limited to,
any material designated as a "hazardous substance" by the United States Environmental
Protection Agency or as a "hazardous material" by the United States Department of
Transportation, or defined as a "toxic substance" by the Canadian Environmental
Protection Act for the purposes of Part II of that Act, or any substance designated or
defined as toxic, dangerous, hazardous or deleterious to persons or the environment
under any other Federal, State, Provincial, Municipal or other law, ordinance or
regulation; and
ii. the presence, existence, or release of anything which endangers or threatens to
endanger the health, safety or welfare of persons or the environment.
p. loss of earnings, delay or loss of market, however caused or arising and despite any preceding
loss insured hereunder, except to the extent this Policy includes a Time Element Endorsement
and then only to the extent insured under the terms and conditions of such Time Element
Endorsement;
action of Electronic Data whether or not contributed to, or aggravated by:
alteration, manipulation or destruction of computer media and data, the addition of a
Computer Virus, destructive code or similar instruction that disrupts the normal operation
of computer equipment or results in the loss of use or physical damage to computer
equipment or computer media and data; '
ii. denial of service; including but not limited to unauthorized direction of a high volume of
messages or inquiries to a web site or e-mail destinations, effectively denying,
interrupting or limiting legitimate access;
Iii. transfer of property caused by, resulting from, or arising out of unauthorized instructions
FS C 494 08 14 Page 2 of 9
transmitted by a computer;
iv. financial loss or any other loss or damage due to unauthorized viewing, copying or use of
any data (including proprietary or confidential information) by any person, even if such
activity is characterized as theft;
failure, malfunction or inadequacy of:
any of the following, whether belonging to the Insured or to others:
(a) computer hardware, including microprocessors
(b) computer application software
(c) computer operating systems and related software
(d) computer networks
(e) microprocessors (computer chips) not part of any computer system;
(f) any other computerized or electronic equipment or components;
nor does this Policy insure against repair, replacement or modification or any of the items
listed in this paragraph (i) in order to correct any deficiencies or change any features;
any other products, and any services, data or function that directly or indirectly use or rely
upon, in any manner, and of the items listed in paragraph (i) above; due to the inability to
correctly recognize, process, distinguish, interpret or accept one or more dates or times;
an example is the inability of computer software to recognize the year 2000; or
iii. any advice, consultation, design, evaluation, inspection, installation, maintenance, repair,
replacement or supervision provided or done by the Insured or by others to determine,
rectify or test for, any potential or actual problems described in paragraph (i) above.
S. failure of any utility service provider to provide utility services;
t. cessation, fluctuation or variation in, or insufficiency of, water, gas or electricity supplies;
6. EXCLUDED PROPERTY
This Policy does not insure:
land (including but not limited to land on which Property Insured is located), water (other than
water contained in plumbing or fire fighting installations), or air, or any interest or right therein;
b. shafts, mines, tunnels, wells, ponds, dams, dikes, wharves, piers, jetties, docks, embankments,
bulkheads, earthen structures and the like, and any man-made property in or under the ground,
underwater or waterborne;
C. driveways, pavements, curbing, culverts sidewalks, roads, bridges, tunnels, pipelines, levies or
damns;
d. buildings or structures in the course of construction, including materials and supplies therefore,
except additions, alterations and repairs to Property Insured;
e. transmission, distribution, or feeder lines located more than 1000 feet from Property Insured;
FS C 494 08 14 Page 3 of 9
neon signs and automatic or mechanical and/or electric signs, awnings, bric-a-brac, porcelains
and similar fragile articles, glass or any ornamentation or lettering thereon;
g. asbestos; nor does this Policy insure against the cost of removal, disposal, decontamination or
replacement of Property Insured containing asbestos;
h. property in transit;
property sold by or under encumbrance to the Insured after it leaves the custody of the Insured or
an employee of the Insured;
accounts, bills, currency, money, notes, securities, deeds, evidence of debt and valuable papers;
k. aircraft or any other aerial device, watercraft, vehicles designed for highway use and/or any public
roads, or locomotives or rolling stock designed for railroad use;
animals, plants, growing crops and living things of all types;
M. jewelry, watches and watch movements, precious and semi-precious stones, gold, silver,
platinum and other precious alloys or metals;
fine arts, furs or garments trimmed with fur;
o. foundations of buildings, including pilings and construction equivalents to support a building, or
structures, machinery or boilers, if their foundations are below;
the lowest basement floor; or
ii. the surface of the ground if there is no basement;
P. property while covered under import and export ocean marine policies.
LIMITS OF INSURANCE
The premium for this Policy is based upon the Statement of Values reported to and on file with the Insurers, or
attached to this Policy. In the event of any covered Loss Occurrence under this Policy, the liability of the
Underwriters shall, notwithstanding anything contained herein to the contrary, be limited to the least of the
following:
a. The actual adjusted amount of the Loss Occurrence within the coverage of the Policy, after
reduction for applicable deductible(s) and sub-limit(s);
b. an amount calculated by:
adding together, for each scheduled item of Property Insured which actually sustained
loss in the Loss Occurrence, 100% of the individually stated value, as shown in the
Declaration or any update thereto on file with Underwriters; and
ii. subtracting from the sum calculated in (i) applicable deductibles and primary and
underlying excess limits, and applying applicable sub -limits;
and further provided that if no value is shown for a scheduled item then there is no coverage for
that item; or
C. The Policy Limit of Liability or applicable sub-limit(s) of liability.
B. VALUATION
FS C 494 08 14 Page 4 of 9
In case of loss of or damage to Property Insured, the basis of adjustment shall be as follows:
a. on stock in process at the value of raw material and labor expended plus the proper proportion of
overhead charges;
b. on finished goods manufactured by the Insured, at the regular cash selling prices at the location
where the loss occurs, less all discounts and charges to which the property would have been
subject had no loss occurred;
C. property of others at the amount for which the Insured is liable but in no event to exceed the
actual cash value;
d. tenants improvements and betterments at Actual Cash Value if repaired or replaced by the
Insured; if repaired or replaced by others for the use of the Insured, there shall be no liability
hereunder;
e. on documents not specifically excluded, at value blank plus cost of transcribing;
on media storing Electronic Data, the cost of the blank media and, if and to the extent that the
media is repaired, replaced or restored, the costs of copying the Electronic Data from back-up or
form originals of a previous generation; for avoidance of doubt, such costs shall not include
research and engineering nor any costs of recreating, gathering or assembling such Electronic
Data media, nor does this Policy insure any amount pertaining to the value of such Electronic
Data to the Insured or to any other party, even if such Electronic Data cannot be recreated,
gathered or assembled;
g. all other property at Actual Cash Value immediately prior to the loss.
The above valuations shall also be used for the purpose of reporting values on the Declaration and will be
considered for the premium computation of this Policy.
Actual Cash Value wherever used in this Policy shall mean the amount it would cost to repair or replace
Property Insured as provided in this Policy, on the date of loss, with material of like kind and quality, with
proper deduction for obsolescence and physical depreciation.
9. OPTIONAL VALUATION
If shown in the Declaration, the following Optional Valuation applies separately to each item:
Replacement Cost wherever used in this Policy shall mean the amount it would cost, on the date
of the loss, to repair or replace Property Insured, with material of like kind and quality, without
deduction for deprecation.
Increased costs of repair or replacement due to operation of any written ordinance or other law
are not included in Replacement Cost.
Debris Removal Costs, as defined herein, are not included in Replacement Cost.
b. Replacement Cost shall replace Actual Cash Value in the Valuation section of this coverage form.
However, this Optional Valuation does not apply to:
contents of a residence;
manuscripts; or
iii. media storing Electronic Data.
FS C 494 08 14 Page 5 of 9
C. Where Replacement Cost coverage is selected such that this Optional Valuation section of the
Policy applies, it is subject to the following provisions:
any settlement shall be based on whichever is the least of the cost of repairing, replacing
or reinstating the destroyed or damaged property with material of like kind and quality;
Ii. the repair, replacement or reinstatement shall be on the same site and intended for the
same occupancy as the destroyed or damaged property;
iii. the repair, replacement or reinstatement must be executed with due diligence and
dispatch; and
iv. until repair, replacement or reinstatement has been effected, the amount of liability under
this Policy in respect of each Loss Occurrence shall be limited to the actual cash value at
the time of the Loss Occurrence.
d. Underwriters' liability for loss under this Policy shall not exceed the smallest of the following
amounts:
the amount applicable to the destroyed or damaged property as calculated in Section 7,
Limits of Insurance;
ii. the replacement cost of the property or any part thereof identical with such property and
intended for the same occupancy and use; or
iii. the amount actually and necessarily expended in replacing said property or any part
thereof.
10. DEBRIS REMOVAL
This Policy, subject to all other terms and conditions, and without increasing the Policy Limit of Liability,
insures Debris Removal Costs, defined herein to be the costs necessarily incurred in connection with an
insured Loss Occurrence to remove from the Insured's property solid remnants of Property Insured to permit
repair, replacement or reinstatement.
The maximum amount payable under this Policy for Debris Removal Costs is the greater of US$25,000
(twenty-five thousand dollars) or 10% (ten percent) of the total of the adjusted amounts of the other
components of the Loss Occurrence.
11. DUE DILIGENCE
The Insured shall use due diligence and do and concur in doing all things reasonable to avoid or diminish
any loss of or damage to the Property Insured. However, Underwriters liability, if any, for such expenses
shall be limited to the amount by which insured losses under this Policy are thereby reduced.
12. NOTIFICATION OF CLAIMS
The Insured upon knowledge of any Loss Occurrence likely to give rise to a claim hereunder shall give
immediate written advice thereof to the person(s) or firm named for the purpose in the Declaration. Any
losses shall not be insured by this Policy if such losses are not reported within a year of when the loss
occurred.
13. PROOF OF LOSS
The Insured shall render a signed and sworn proof of loss within ninety (90) days after the occurrence of a
loss (unless such period be extended by the written agreement of Underwriters) stating the time, place and
FS C 494 08 14 Page 6 of 9
cause of loss, the interest of the Insured and of all others in the property, the sound value thereof and the
amount of loss or damage thereto.
14. SUBROGATION
If the Underwriters become liable for any payment under this Policy in respect of loss or damage the
Underwriters shall be subrogated, to the extent of such payment, to all the rights and remedies of the Insured
against any party in respect of such loss or damage and shall be entitled at their own expense to sue in the
name of the Insured. The Insured shall give to the Underwriters all such assistance in its power as the
Underwriters may require to secure their rights and remedies and, at Underwriters' request, shall execute all
documents necessary to enable Underwriters effectively to bring suit in the name of the Insured including the
execution and delivery of the customary form of loan receipt.
The Underwriters hereon agree that this Policy shall not be invalidated should the Insured waive in writing,
prior to loss affected thereby, any or all rights of recovery against any party for loss or damage occurring to
the property described herein. The Underwriters expressly waive subrogation against any subsidiary, parent,
associated, or affiliated company of the Insured, but the above waivers shall not apply where the party
otherwise protected by that waiver is supplying or receiving goods or services for which compensation
passes between the Insured and such other party.
15. PROTECTION MAINTENANCE
It is agreed that any protections provided for the safety of Property Insured shall be maintained in good order
throughout the Policy Period of this Policy and shall be in use at all times out of business hours or when the
Insured's premises are left unattended, and that such protections shall not be withdrawn or varied to the
detriment of the interests of the Underwriters without their consent.
16. CANCELLATION
This Policy may be cancelled by the Insured at any time by written notice or by surrender of this Policy. This
Policy may also be cancelled by or on behalf of the Underwriters by delivering to the Insured or by mailing to
the Insured, by registered, certified or other first class mail, at the Insured's address as shown in the
Declaration, written notice stating when, not less than thirty (30) days thereafter, or not less than ten (10)
days in the event of nonpayment of premiums, the cancellation shall be effective. The mailing of such notice
as aforesaid shall be sufficient proof of notice and this Policy shall terminate at the date and hour specified in
such notice.
If this Policy shall be cancelled by the Insured the Underwriters shall retain the customary short rate
proportion of the premium hereon, except that if this Policy is on an adjustable basis the Underwriters shall
receive the earned premium hereon or the customary short rate proportion of any minimum premium
stipulated herein whichever is the greater.
If this Policy shall be cancelled by or on behalf of the Underwriters the Underwriters shall retain the pro rata
proportion of the premium hereto, except that if this Policy is on an adjustable basis the Underwriters shall
receive the earned premium hereon or the pro rata proportion of any minimum premium stipulated herein
whichever is the greater.
Payment or tender of any unearned premium by the Underwriters shall not be a condition precedent to the
effectiveness of cancellation but such payment shall be made as soon as practicable.
If the period of limitation relating to the giving of notice is prohibited or made void by any law controlling the
construction thereof, such period shall be deemed to be amended so as to be equal to the minimum
requirements of the statute concerning cancellation in the relevant jurisdiction.
17. ABANDONMENT
There shall be no abandonment to the Underwriters of any property.
FS C 494 08 14 Page 7 of 9
18. ASSIGNMENT
Assignment or transfer of this Policy shall not be valid except with the written consent of Underwriters.
19. EXCESS INSURANCE
Permission is granted to the Insured to have excess insurance over the limit of liability set forth in this Policy
without prejudice to this Policy and the existence of such insurance, if any, shall not reduce any liability under
this Policy.
20. EXAMINATION UNDER OATH
If required by the Underwriters, in the event of a claim being made under this Policy, the Insured, or if a
Company of other body, then the appropriate representatives, shall submit to examination on oath at such
reasonable times and places as may be arranged
21. INSPECTION AND AUDIT
The Underwriters shall be permitted but not obligated to inspect the Insured's property at any time. Neither
the Underwriters' right to make inspection nor the making thereof nor any report thereon shall constitute an
undertaking, on behalf of or for the benefit of the Insured or others, to determine or warrant that such
property is safe.
The Underwriters may examine and audit the Insured's books and records at any time during the Policy
period and extensions thereof and within three years after the final termination of this Policy, as far as they
relate to the subject matter of this Insurance.
22. ASSISTANCE AND COOPERATION
The Insured shall cooperate with the Underwriters and, upon Underwriter's request, shall assist in securing
and giving evidence, and obtaining the attendance of witnesses.
23. SALVAGE AND RECOVERIES
All salvages, recoveries and payments recovered or received subsequent to a loss settlement under this
Policy shall be applied as if recovered or received prior to the said settlement and all necessary adjustments
shall be made by the parties hereto.
24. MISREPRESENTATION AND FRAUD
This entire Policy shall be void if the Insured has willfully concealed or misrepresented, in writing or
otherwise, any material facts or circumstances concerning this Policy or the subject matter thereof or any
claim thereunder.
25. TITLES OF PARAGRAPHS
The several titles of the various paragraphs of this form (and of endorsements and supplemental contracts, if
any, now or hereafter attached to this Policy) are inserted solely for convenience or reference and shall not
be deemed in any way to limit the provisions to which they relate.
26. MINIMUM EARNED PREMIUM
In the event of cancellation of this Policy by the Insured, a minimum premium of 25 % of the Policy premium
shall become due and payable by the Insured regardless of any conditions of the Policy to the contrary.
Failure of the Insured to make timely payment of premium shall be considered a request by the Insured for
the Underwriters to cancel. In the event of such cancellation by the Underwriters for non-payment, the
minimum premium shall be immediately due and payable. Cancellation for non-payment of premium may be
rescinded at the discretion of the Underwriters by payment of the full amount of premium due to the
FS C 494 08 14 Page 8 of 9
Underwriters and upon verification by the Underwriters that the Property Insured is in essentially the same or
better condition than at the time of cancellation. In the event the premium due is paid after the cancellation
date has become effective, there may be, at the discretion of the Underwriters, a lapse in coverage between
the date of cancellation and the date the premium was paid.
27. ADDITIONAL DEFINITIONS
a. Loss Occurrence wherever used in this Policy shall mean:
b. the sum of all individual losses or series of individual losses resulting from or arising out of and
directly occasioned by any one event. Earthquake wherever used in this Policy shall mean:
collapse, falling, cracking, rupturing, shifting, crushing, breaking, bursting, fracturing, or shattering
of Property Insured resulting from a shock, shaking, tremor, and/or convulsion of the earth's
surface caused by natural seismic forces, or from the eruption, explosions or effusion of a
volcano.
Loss resulting directly or indirectly from any resulting peril shall not be insured hereunder, except
that this Policy shall insure direct physical loss or damage to Property Insured resulting directly
from Earth Movement ensuing as a direct result of Earthquake.
When the term Loss Occurrence applies to a loss or series of losses from the peril Earthquake
and the peril of Earth Movement ensuing as a direct result of Earthquake, one event shall be
construed to be all losses arising during a continuous period of 168 hours. When filing a proof of
loss the Insured may elect the moment at which the 168 hour period shall be deemed to have
commenced, which shall not be earlier than the first loss to occur at any covered location. The
Insured may select only one continuous period of 168 hours for any Loss Occurrence that
includes Earthquake and/or Earth Movement ensuing as a direct result of that Earthquake.
C. Earth Movement wherever used in this Policy shall mean:
landslide, mudslide, mudflow, sinkhole or earth sinking, subsidence, rising or shifting including
soil conditions which caused settling or other disarrangement of foundations or other parts of
realty.
Soil conditions include contraction, expansion, freezing, thawing, erosion, improperly compacted
soil and the action of water under the ground surface.
Flood wherever used in this Policy shall mean:
i. inundation of normally dry land by natural or human cause;
ii. tsunami, seaquake; and/or
iii. surface water, waves, tide or tidal water, and the rising (including the overflow or
breaking of boundaries) of lakes, ponds, reservoirs, levies, rivers, harbors, streams, and
other similar bodies of water, whether driven by wind or not.
e. Electronic Data wherever used in this Policy shall mean:
facts, concepts and information converted to a form useable for communications, interpretation or
processing by electronic and electromechanical data processing or electronically controlled
equipment and includes programs, software and other coded instructions for the processing and
manipulation of data or the direction and manipulation of such equipment.
Computer Virus wherever used in this Policy shall mean:
a set of corrupting, harmful or otherwise unauthorized instructions or code including a set of
maliciously introduced unauthorized instructions or code, programmatic or otherwise, that
propagate themselves through a computer system or network of whatsoever nature. COMPUTER
VIRUS includes but is not limited to 'Trojan Horses', 'worms' and 'time or logic bombs'.
FS C 494 08 14 Page 9 of 9
POLICY NUMBER:
COMMERCIAL PROPERTY
FS C 49310 12
This endorsement. subject to its stated terms and conditions, is_sublect to the terms and conditions of
the Policy to which it attaches.
STATEMENT OF DEDUCTIBLE FOR EARTHQUAKE AND/OR
FLOOD IF COVERED BY THIS POLICY
As respects any Loss Occurrence directly or indirectly caused by, or contributed to by the peril of Earthquake, and
the peril of Earthmovement ensuing as a direct result of Earthquake, Underwriters shall not be liable for loss to
any unit of insurance unless such loss exceeds an amount equal to the greater of (i) the Minimum Deductible
stated below; or (ii) 5% of the individually stated value for each unit of insurance which actually sustained loss in
the Loss Occurrence, and then only for its proportions of such excess amounts. The following shall each be
considered a separate unit of insurance:
a) each separately -scheduled building or structure;
b) the contents of each separately -scheduled building or structure; and
c) to the extent this Policy includes a Time Element Endorsement, Operations (as defined therein)
conducted at each separately -scheduled building or structure
A minimum sum of $25,000 shall be deducted from the amount of each adjusted Loss Occurrence (hereinafter
referred to as the "Minimum Deductible").
If this Policy includes a Flood Endorsement, then as respects any Loss Occurrence directly or indirectly caused
by, or contributed to by, the peril of Flood, Underwriters shall not be liable for loss to any unit of insurance unless
such loss exceeds an amount equal to the greater of (i) the Minimum Deductible stated below; or (ii) N/A of the
individually stated value for each unit of insurance which actually sustained loss in the Loss Occurrence, and then
only for its proportions of such excess amounts. The following shall each be considered a separate unit of
insurance:
a) each separately -scheduled building or structure;
b) the contents of each separately -scheduled building or structure; and
c) to the extent this Policy includes a Time Element Endorsement, Operations (as defined therein)
conducted at each separately -scheduled building or structure
A minimum sum of N/A shall be deducted from the amount of each adjusted Loss Occurrence (hereinafter
referred to as the "Minimum Deductible
FS C 493 10 12 Page 1 of 1
POLICY NUMBER:
TIME ELEMENT ENDORSEMENT TO
BEAZLEY EARTHQUAKE POLICY
COMMERCUL PROPERTY
FS C 513 0613
In consideration of the premium paid and subject to the terms, exclusions, limitations and conditions of
the Policy to which this Endorsement is attached, and also to the following additional terms, exclusions,
limitations and conditions, this Policy is extended to insure against:
Actual Loss of Business Income sustained by the Insured during the Period of
Restoration due to the necessary suspension of the Insured's Operations caused directly
by physical loss of, or damage to, Property Insured directly caused by a Peril Insured.
Extra Expense consisting of those expenses incurred by the Insured to conduct Operations during
the Period of Restoration and that are above the expenses which would have been incurred by
the Insured to conduct Operations during the Period of Restoration had there been no physical
loss of, damage to, Property Insured directly caused by a Peril Insured.
1) Definitions:
a) Actual Loss of Business Income, as used in this Endorsement, means:
i) an amount calculated by adding:
(1) gross earnings that would have been earned, including rental income from tenant
occupancy of the Property Insured, had there been no necessary suspension of the
Insured's Operations; and
(2) continuing normal operating expenses incurred, including ordinary payroll and, as to
manufacturing facilities, the net sales value of production;
ii) provided that the amount of Actual Loss of Business Income will be determined based on:
(1) the financial records and accounting procedures of the Insured prior to the Loss
Occurrence;
(2) budgets, forecasts or other estimates of what the financial performance of the Insured's
Operations would have been had the Peril Insured not occurred; and
(3) other relevant sources of information, including:
(a) the Insured's financial records and accounting procedures;
(b) bills, invoices, and other vouchers; and
(c) deeds, liens, rental agreements or contracts; and
iii) in no event shall the Actual Loss of Business Income include any amount attributable to an
estimate of the gross earnings that would have been earned as a result of favorable business
conditions caused by the impact of the Peril Insured on customers, competitors or others.
FS C 513 06 13 Page 1 of 3
b) Extra Expense, as used in this Endorsement, means:
i) an amount calculated by adding:
(1) the reasonable and necessary operating expenses that exceed normal operating expenses
that would have been incurred by the Insured to conduct Operations during the Period of
Restoration had there been no physical loss, damage or destruction of Property Insured
directly caused by a Peril Insured; and
(2) such further reasonable and necessary expenses incurred during the Period of Restoration
to avoid or minimize the necessary suspension of the Insured's Operations directly
caused by a Peril Insured sustained at Property Insured, but only to the extent that such
expenses actually reduce the loss.
ii) Extra Expense may include reasonable and necessary relocating expenses and costs to equip
and operate replacement or temporary locations.
iii) Underwriters will deduct from the total Extra Expense the salvage value that remains of any
property bought for temporary use during the Period of Restoration, measured at the end of
the Period of Restoration.
c) Operations, as used in this Endorsement, means:
the regular business activities of the Insured occurring at Property Insured, including rental of
Property Insured to others.
d) Period of Restoration, as used in this Endorsement, means:
the period of time that:
(i) begins with the date the Peril Insured was sustained at the Property Insured; and
(ii) ends on the earlier of :
1. when the Property Insured could have been repaired, rebuilt or replaced using
due diligence and dispatch; or
2. the date when the Insured could have restored Operations to the levels that
would have existed if the Peril Insured had not occurred, whether by means of
an alternate location or otherwise;
2) Additional Coverage:
Extended Business Income
If the necessary suspension of the Insured's Operations produces an Actual Loss of Business Income
as insured by this Policy, Underwriters will pay for the Actual Loss of Business Income sustained by
the Insured during the period that:
(i) Begins on the date the Property Insured is actually repaired rebuilt or replaced and
Operations are resumed; and
(ii) Ends on the earlier of. -
1.
f:1. The date the Insured could restore operations with due diligence and
dispatch, to the level which would generate the business income amount
that would have existed if no direct physical loss or damage had occurred;
or
2. 30 consecutive days after the date determined in 2) (ii) 1 above.
FS C 513 06 13 Page 2 of 3
3) Exclusions: This Endorsement and the Policy to which it attaches do not insure:
a) any Actual Loss of Business Income or Extra Expense caused by or resulting from damage to or
destruction of finished stock, defined herein as stock you have manufactured or stock consisting
of alcoholic products being aged, excepting stock held for sale on the premises of any Property
Insured the Insured is operating as a retail outlet;
b) any Actual Loss of Business Income or Extra Expense caused by or resulting from damage to or
destruction of business personal property while in transit;
c) any Actual Loss of Business Income or Extra Expense caused by or resulting from delay in
rebuilding, repairing or replacing the Property Insured or resuming Operations due to
strikers; or
d) any Actual Loss of Business Income or Extra Expense caused by or resulting from the
suspension, lapse or cancellation of any license, lease, contract or order for any reason other than
as a direct result of the necessary suspension of the Insured's Operations directly caused by
physical loss of or damage to Property Insured directly caused by a Peril Insured.
e) anyActual Loss of Business Income or Extra Expense caused by or resulting fromthe enforcement
of any ordinance or law regulating the use, reconstruction, repair or demolition of any property
Insured hereunder.
FSC5130613 Page 3of3
POLICY NUMBER:
COMMERCIAL PROPERTY
USES0114-004
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
AMENDATORY ENDORSEMENT
CONTINGENT TAX REVENUE INTERRUPTION EXTENSION
In consideration of the premium paid, and subject to the exclusions, conditions and limitations of the policy to
which this Extension is attached, and to the provisions contained within this endorsement, it is agreed that the
following additional coverage is added to this Policy:
We will pay for the actual loss of sales and property tax revenue collected by or due to you. Such loss of revenue
must be caused by direct physical loss of damage to property of the type insured by this Policy not owned or
operated by you caused by a Covered Cause of Loss.
In the event of such damage or destruction, we shall only be liable with limitations as indicated here, if the
following conditions (a) and (b) are both met:
a. The total revenue is reduced to less than 97.5% of the Insured's anticipated revenue had no physical loss
or damage occurred.
b. We shall pay for the actual loss sustained for only the length of time as would be required with the excise
of due diligence and dispatch to rebuild, replace the contributing property commencing with the date of
physical loss or damage to the contributing property, but not limited by the expiration date of this Policy.
This extension of coverage does not include any increased period of time required due to the enforcement of any
ordinance or law that;
i) Regulates the construction, use or repair, or requires the tearing down, for any property; or
ii) Requires testing for, monitor, clean up, remove contain, treat detoxify or neutralize, or in any way respond
to or assess the effects of pollutants.
Such loss recovery after deductible shall be limited to whichever is the least of:
i) The sub limit as shown on the declaration
ii) The actual loss sustained
iii) The difference in amount between 97.5% of the anticipated revenue and the actual total revenue after the
loss.
USES0114-004 Page 1 of 1
POLICY NUMBER:
COMMERCIAL PROPERTY
FS C 488 10 12
This endorsement, subject to its stated terms and conditions and the terms and conditions of the Policy
to which it attaches, adds coverage otherwise excluded under the Policy.
ORDINANCE OR LAIN ENDORSEMENT
The coverage set forth in this Endorsement applies only to those locations specifically listed in the schedule
below:
SCHEDULE
Building/Premises Sublimit for Sublimit for Combined Sublimit for
Coverage B Coverage C Coverage B and C
(Demolition Cost) (Increased Cost of
Construction)
All/All
Coverage
$2,500,000
If a Peril Insured causes direct physical loss or damage to Property Insured and that item of Property
Insured is shown on the Schedule above, then this Policy provides the following with respect to that item
of Property Insured:
a) Coverage A — Loss to the Undamaged Portion of an Item of Property Insured.
If enforcement of any written ordinance or other law in force at the time of the physical loss or damage
requires the demolition of undamaged portions of the item of Property Insured, Underwriters will pay for:
(i) the Actual Cash Value of such undamaged portions or,
(ii) if Replacement Cost coverage is selected such that the Optional Valuation section of the
Policy applies to the item of Property Insured and the item of Property Insured is actually
repaired, replaced or rebuilt, the Replacement Cost of such undamaged portions.
b) Coverage 8 — Demolition Cost.
If enforcement of any written ordinance or other law in force at the time of the physical loss or damage
requires the demolition of undamaged portions of the item of Property Insured, Underwriters will pay the
reasonable and necessary cost to demolish and clear undamaged portions of the item of Property Insured
from the premises on which it is located, subject to the following condition:
(i) Underwriters will not pay more under Coverage B for the item of Property Insured than
the Sublimit(s) shown in the Schedule above. If no Sublimit is shown for that item of
Property Insured, Coverage B does not apply.
c) Coverage C — Increased Cost of Construction.
To the extent the item of Property Insured is repaired, replaced or rebuilt (at the same or other premises),
Underwriters will pay for the increased cost to repair, replace or rebuild the item of Property Insured
caused by enforcement of any written ordinance or other law in force at the time of the physical loss or
damage, whether such increased costs are incurred with respect to damage or undamaged portions of the
item of Property Insured, subject to the following conditions:
Underwriters will not pay under Coverage C until the item of Property Insured is actually
repaired, replaced or rebuilt (at the same or other premises), and further provided that the
repair, replacement or rebuilding must occur as soon as reasonably possible and, in any
event, within two years after the physical loss or damage.
ii) Underwriters will not pay more under Coverage C than the increased cost of construction
FS C 488 10 12 Page 1 of 2
at the same premises, unless the written ordinance or other law requires relocation to
other premises.
iii) Underwriters will not pay more under Coverage C for the item of Property Insured than
the Sublimit(s) shown in the Schedule above. If no Sublimit is shown for that item of
Property Insured, Coverage C does not apply.
d) Additional Conditions A1212licable to Coverages A 8 and C:
a. This Endorsement is subject to, and does not increase, the Limits of Insurance specified in the
Policy.
b. In no event shall Underwriters' total liability with respect to the item of Property Insured exceed
the lesser of (i) the amount the Insured actually spends to demolish and clear undamaged parts
of the item of Property Insured from the premises on which it is located plus the amount the
Insured actually spends to repair, replace or rebuild the item of Property Insured, or (ii) the
amount it would cost to demolish and clear undamaged parts of the item of Property Insured from
the premises on which it is located plus the amount it would cost to repair, replace or rebuild the
item of Property Insured on the same premises.
c. Underwriters will not pay under this endorsement for the costs associated with the enforcement of
any written ordinance or other law which requires any action (including, but not limited to testing,
monitoring, clean-up, or treatment) with respect to:
i. mold;
ii. asbestos; or
iii. "any kind of seepage or any kind of pollution and/or contamination" as that phrase is defined
in the Policy.
FS C 488 10 12 Page 2 of 2
POLICY NUMBER:
COMMERCIAL PROPERTY
FS C 500 10 12
This endorsement subject to its stated terms and conditions and the terms and conditions of the Poliav
to which it attaches, adds coverage otherwise excluded under the Policy.
VALUABLE PAPERS AND RECORDS EXTENSION
In consideration of the premium paid, and subject to the exclusions, conditions and limitations of the policy to
which this Extension is attached, this Policy is extended to cover physical loss or damage to valuable papers and
records that are the Insured's property or property of others in the Insured's care custody and control and while
such valuable papers and records are kept inside the Insured building(s) shown in the declarations.
In the event of a physical loss or damage as insured under this Policy the basis of valuation shall be on the lesser
of the following:
a) The cost to repair the item(s) with other(s) of a like kind and quality.
b) The cost to replace the item(s) with other(s) of a like kind and quality.
"Valuable Papers and Records" are defined as written, printed, or otherwise inscribed documents and/or records,
including books, maps, films, drawings, abstracts, deeds, mortgages and manuscripts. Valuable Papers and
records does not mean money, securities, converted data, programs or instructions used in the Insured's data
processing operations, including the materials on which the data is recorded.
"Money " is defined as currency, coins, bank notes and bullion; and travellers checks, register checks and money
orders held for sale to the public.
"Securities" are defined as all negotiable and non negotiable instruments or contracts representing either money
or other property and includes revenue and other stamps in current use, tokens, and tickets but does not include
money.
Underwriters shall not be liable under this Extension for more than any Specific Valuable Papers sub -limit stated
in the Declaration, which shall be part of and not additional to the Policy limit stated in the Declaration.
ALL OTHER TERMS AND CONDITIONS OF THE POLICY REMAIN UNCHANGED
FS C 500 10 12 Page 1 of 1
POLICY NUMBER:
COMMERCIAL PROPERTY
LSW1135B
LLOYD'S PRIVACY POLICY STATEMENT UNDERWRITERS AT
LLOYD'S, LONDON
The Certain Underwriters at Lloyd's, London want you to know how we protect the confidentiality of your non-
public personal information. We want you to know how and why we use and disclose the information that we have
about you. The following describes our policies and practices for securing the privacy of our current and former
customers.
INFORMATION WE COLLECT
The non-public personal information that we collect about you includes, but is not limited to:
• Information contained in applications or other forms that you submit to us, such as name, address, and social
security number
Information about your transactions with our affiliates or other third -parties, such as balances and payment
history
Information we receive from a consumer -reporting agency, such as credit -worthiness or credit history
INFORMATION WE DISCLOSE
We disclose the information that we have when it is necessary to provide our products and services. We may also
disclose information when the law requires or permits us to do so.
CONFIDENTIALITY AND SECURITY
Only our employees and others who need the information to service your account have access to your personal
information. We have measures in place to secure our paper files and computer systems.
RIGHT TO ACCESS OR CORRECT YOUR PERSONAL INFORMATION
You have a right to request access to or correction of your personal information that is in our possession.
CONTACTING US
If you have any questions about this privacy notice or would like to learn more about how we protect your privacy,
please contact the agent or broker who handled this insurance. We can provide a more detailed statement of our
privacy practices upon request.
LSW1135B (06/03) Page 1 of 1
POLICY NUMBER: COMMERCIAL PROPERTY
LMA5219
U.S. Terrorism Risk Insurance Act of 2002 as amended
Not Purchased Clause
This Clause is issued in accordance with the terms and conditions of the "U.S. Terrorism Risk Insurance Act of
2002" as amended as summarized in the disclosure notice.
It is hereby noted that the Underwriters have made available coverage for "insured losses" directly resulting from
an "act of terrorism" as defined in the "U.S. Terrorism Risk Insurance Act of 2002", as amended ("TRIA") and the
Insured has declined or not confirmed to purchase this coverage.
This Insurance therefore affords no coverage for losses directly resulting from any "act of terrorism" as defined in
TRIA except to the extent, if any, otherwise provided by this policy.
All other terms, conditions, insured coverage and exclusions of this Insurance including applicable limits and
deductibles remain unchanged and apply in full force and effect to the coverage provided by this Insurance.
LMA5219
12 January 2015
LMA5219 Page 1 of 1
POLICY NUMBER: COMMERCIAL PROPERTY
LMA5218
U.S. Terrorism Risk Insurance Act of 2002 as amended
New & Renewal Business Endorsement
This Endorsement is issued in accordance with the terms and conditions of the "U. S. Terrorism Risk Insurance
Act of 2002" as amended, as summarized in the disclosure notice.
In consideration of an additional premium of USD $5,850 paid, it is hereby noted and agreed with effect from
inception that the Terrorism exclusion to which this Insurance is subject, shall not apply to any "insured loss"
directly resulting from any "act of terrorism" as defined in the "U.S. Terrorism Risk Insurance Act of 2002". as
amended ("TRIA").
The coverage afforded by this Endorsement is only in respect of any "insured loss" of the type insured by this
Insurance directly resulting from an "act of terrorism as defined in TRIA. The coverage provided by this
Endorsement shall expire at 12:00 midnight December 31, 2020, the date on which the TRIA Program is
scheduled to terminate, or the expiry date of the policy whichever occurs first, and shall not cover any losses or
events which arise after the earlier of these dates. The Terrorism exclusion, to which this Insurance is subject,
applies in full force and effect to any other losses and any act or events that are not included in said definition of
"act of terrorism".
This Endorsement only affects the Terrorism exclusion to which this Insurance is subject. All other terms,
conditions, insured coverage and exclusions of this Insurance including applicable limits and deductibles remain
unchanged and apply in full force and effect to the coverage provided by this Insurance.
Furthermore the Underwriter(s) will not be liable for any amounts for which they are not responsible under the
terms of TRIA (including subsequent action of Congress pursuant to the Act) due to the application of any clause
which results in a cap on the Underwriters liability for payment for terrorism losses.
LMA5218
12 January 2015
LMA5218 Page 1 of 1