Free Appendix - District Court of Delaware - Delaware

Case 1:07-cv-00248-SLR

Document 35

Filed 03/12/2008

Page 1 of 1

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWAR
The American Legacy Foundation, )

v. )

Plaintiff, )
) ) ) ) )

National Union Fire Insurance Company of )

Pittsburgh, Pennsylvania, ) Civil Action No. 07-248 (SLR)

Defendants. )

APPENDIX TO THE FOUNDATION'S BRIEF

IN SUPPORT OF ITS MOTION FOR SUMMAY JUGMENT
VOLUME III OF III
GILBERT RADOLPH LLP
Richard Shore

Kami E. Quinn 1100 New Y ork Avenue, NW Suite 700 Washington, DC 20005
Telephone: (202) 772-2200

and

PACHULSKI STANG ZIEHL & JONES LLP Laura Davis Jones (Bar No. 2436) Timothy P. Cairns (Bar No. 4228) 919 North Market Street, 1 ih Floor P.O. Box 8705 Wilmington, DE 19899-8705 (Courier 19801)
Telephone: (302) 652-4100

Facsimile: (302) 652-4400
Counsel for Plaintiff American Legacy Foundation

Date: March 12, 2008

DOCS_DE:

135139.2

Case 1:07-cv-00248-SLR

Document 35-2

Filed 03/12/2008

Page 1 of 52

EXHIBIT M

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Case 1:07-cv-00248-SLR

. Ona Tower Squa. Hard, Conne 0683.
COMMON POUCY DEClRATIONS

Document 35-2 Filed 03/12/2008 RECRDS RETION

Trwe~~J . "'_d~

Page 2 of 52

.'" ;BUSINESS:OFFlCE (OFFICE PAC .

ISSUE'

POUC NO.: W-680-479H5-3-TIA-GG DATE: 10-14-99

1. NAMED INSURED AND MAIUNG ADDRESS:

AlRICAN LEGACY FOlJATION

750 FIRST ST. NE. STE 94
WASHINGTON

DC 20002
From 07:"22-99 to 07-22-00 12:01 A.M. Stndard

2. . POUCY PERIOD:
3. lOCATIONS:

Time at your maiilng addres.
ADDRESS
(sae as MaDlrg Address unles speifed oterwise)

PREM. NO. BLOG. NO. OCUPANCY
01 .
ot"

OFFICE

WASHING Dc 20002

750 fIRST ST. N:. STE 940

4. COVERAGE PART AND SUPPLEMENTS FORMING PART OF THIS POUCY AND INSURING

COMPANIES .

COVERAGE PARTS

and SU~PLEMENTS

INSURING COMPANY

Buslneowners Coverage Part
Comrcial Inland Marine Coverage Part

TIA TIA

(

¡¡¡¡ .

æ -== ~

= -=Il

. 5.

Ths COMPum POLICY cost of (1) thts decaraions and (2) ai Other decarons, forms 'änd endors .

m.ent for which symbo numbe are lised on page two of thIs dearaons .

=. 6.

SUPPLEMENTAL POUCIES: Each of th following Is a sepate poicy containing its complete proios.

POLICY POUCY NUMBER' INSURING CoMPANY

. æ;= ==
¡¡i;¡ ;¡ -!!= ;¡ =
DIRECT BILL

r"',. ',--.~-~ ~-~:ì~~~'~;;;--'-- ,
¡ to ~1. ~'li:. Dfl ¡¡fi s z¡ hexff 2i mírs:¡ffit:s:! ~tt ~:'¡fÍ\' uf ~.;1lo mtì ¡

i . i

7. PREMIUM SUIMMARY:
i ,tt:~ro 'l~~i em rii beu bM aDioosi yr:i.itl¡riO rii benietfìiM 'P~$¡1 1

-=

. ProvisIonal Premium Due at lnceptfcin Due at Each
.

¡ st~r ~ \'I'i '1 rl\~32ø1qe; t.( .wois!j nti(.t;~ ~¡!$b~i. ¡tt$c?.a'il'ilj, ¡

~882 ~~. yj:x $£! oj ¡tj3ítq~\1 l!t r¡\ lr~!iO ai ~-i~~ iS l'

NAE AND ADDRIESS OF AGENT OR BROKER

r '. .~rif: i-r ~ó ~ff el e:i~ i:So l
l *' Cbl1~RS~GNED_~:~-.,..~__,..'..' '. 'j i .. 't . \ ~ î(nsqmoO ~îirJ~'l 'osmsl1 .

ARMFIELD HARISON THMAS F9502

i ..' EESBURG VA 20175
\.
Il TO 19 01 89 (I'age 1 of 2)

20 S. KING STREET

Authorlz~.~e!:~~~~,~___ l

-"~-Ò-ATE"- :~tga ~E.ir¡,(i!4 ~j.tl ~"'~'_-".k . ~: ~,.- ~J' "._:oa~. ~~i:': 't t flf
A445

. Offi: WASHINGTON DC DOWN

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Case 1:07-cv-00248-SLR

Document 35-2

Filed 03/12/2008

One T0V8r Sqre. Hart. Coic 06183

COMMON POUCY DECLATION
OFFICE PAC

POCY NO.: W-680-479H5-3-TIA-99
ISSUE DATE: 10-14-99

~~~J

Page of 52 .' 3.~

)

SCHEDULE OF DEClATIONS. FORMS AND ENDORSEMENTS

This scedule shows the numbers of decrations. fonns and endorsments which fon your complete polic.
IL TO 19 01 89
IL T3 15 12 94
IL T3 53 04 98
IL 00 21 11 85

CON POLICY DEC

CO POLICY CONlITIDN
EXClUSION-cRTAIN COUTER-RELATED LOSSES

NJEAR EN:RGY LIABILITY EXCL

IL 02 78 04 98

~ TO 01 09 98

FT1020892
~r1 050188
MP T3 01 04 96 l. T9 70 01 98 CG DO 37 01 Si
CG DO 4() 01 92

..

DC CHANS - CANCELlATION AN ~Et£WAL
BUINESSOWNRS COV PART DEC

. .

BUI.NESS~RS PROPERTY COV-S~CIAL FOR AlltATOV PROVISION - OFFICES WAC BROADEN:D PROP EfiSEMENT POWR-PAC EN)RSEfiNT .
OTHR INSURANCE-ADDL INSDS

ADl INS OWN/MG CONVENTON CENTRS
EXCL-DISCRIMlNATION

. CG '01 42 01 99
CG D1 92 08 97 CG 01 94 11 97

AfiID POLLUTION EXCL-BLDG ÆAT EQUIP EXCPT

CG T3 33 12 88
~

CHES-CNL GENERAL LIABILITY COV FORM LIMITATION WlN TW OR MO POLICIES APPLY
EXCL -ASBESTOS

CG T4.78 .08 96

--¡; =--~ ¡; '=

CG 0001 '10 93 CG 21 47 10 93
CG 22 24 11 85 CG 22 39 10 93 GN 01 71 05'95
GN 01 74 05 95

CfL GEt,RAL LIABILITV COV FORM
E,.tOVlNT-RLA TED PRACTICES EXCL

EXCL-INSECTION. APPRAISAL & SURY COANIES
EXCL -CAWS OR CAMGROUS
TRDE. ASSOCIATION .EXCL

~ ~ = ~ == =~
~ ~ -

ææ

EXCL OF CO - CHPTER OR CLUB ACTIVITY'

eM TO 18 01 98

COV PRT OEC BUS COUTR
BUS.INESS COUTE.R COV .FORM

eM T1 21. 01 98
eM 00 01 06 95

t:t INLAND MARlfI COfIITION

=æ ==

-

==

~IL TO 19 01 89 (page

2 of 02)

A446

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Case 1:07-cv-00248-SLR

Document 35-2

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Page 4 of 52

COMMON POLICY CONDITIONS
,Ii Coverage Parts included in this policy are subject to the following conditions:

A. CANCELLATION C. EXAMINATION OF YOUR BOOKS AND RE1. The first Named Insured shown in the Decla- CORDS
rations may cancel this policy by mailng or We may examine and audit your books and

delivering to us advance wñtten notice of records as they relate to this policy at any time cancellation. during the policy period and up to three years
2. We may cancel this policy or any Coverage afterward.
Part by mailng or delivering to the first D. INSPECTIONS AND SURVEYS

Named Insured written notice of cancellation We have the right but are not obligated to:
at least
a. 10 days before the effective date of can-

1. Make inspections and surveys at any time;

premIum: or and'
b. 30 days before the effective date

cellation, if we cancel for nonpayment of 2. Give you reports on the conditions we find;
of can- J. Recommend changes.

reason. dations relate only to insurabilty and the
3. We will mail or deliver our notice to the first. premiums to be charged. We do not make Named Insured's last mailng address known safety inspections. We do not undertake to per~

cel/ation if we cancel for any other Any inspection, surveys, reports or recommen-

to us. . form the duty of any person or organization to
provide we do not warrant that workers or 4. Notice of cancellation wil state the effective . public. Andfor the health or safety of conditions: the

date of cancellation. If the policy is cancelled, that date wil become. the end of the 1. Are safe or healthful: or
policy period. If a Coverage Part is can- 2. Comply with laws, . regulations, codes or
. (

celled, that date wil become the end of the standards. . policy period as respects that Coverage Part This conditon applies not only to us, but also to

only. any rating, advisory, rate service or similar or-

5: If this policy or any Coverage Part is can- ganization which makes insurance inspections,

. celled, we wil send the first Named Insured surveys, reports or recommendations. any premium refund due. If we cancel, the E. PREMIUMS refund wil be. pro rata. If the first Named
Insured cancels, the refund may be less than 1. The first Namèd Insured shown in'

the Decla-

. pro rata. The cancellation wil be effective rations: even if we have not made or offered a refund. a. is responsible for the payment of al/

6. If notice is mailed, proof of mailng wil be premiums: and

B. CHANGES miums we pay.

suffcient proof of notice. . b. Will be the payee for any return pre-

. This policy contains al/ the 'agreements between 2. We Compute all premiums for this policy in
you and us concerning the insurance afforded. aCGordance with our rules, rates, rating

The first Named Insured shown in the Declara- plans, premiums and minimum premiums. tions is authoñzed to make changes in the terms The premium shown in the Declarations was
of this policy with our consent. This policy's computed based on rates and rules in effect terms can be .amended or waived only by endor- at the time the policy was issued. On each

sement issued by us as part of this policy. renewal, continuation or anniversary of the
effective date of this policy, we wil compute

the premium in accordance with our rates
and rules then in effect.
L

'.,

IL T3 15 12 94
(Rev. 2-95)

Page 1 of 2

A447

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Case 1:07-cv-00248-SLR

Document 35-2

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Page 5 of 52

F. TRANSFER OF YOUR RIGHTS AND DUTIES
UNDER THIS POLICY
g. Causes of Loss Special Form; and

Your rights and duties under this policy may not be transferred without our written consent except

h. Causes of Loss Earthquake Form.

Endorsements referencing the Commercia Property Coverage Part or the Standard Property Forms referenced above apply to the Businessowners Property

in the case of death of an individual named insured.

If you die, your rights and duties wil be transferred to your legal representative but only while

Coverage-Förm (Standard or Special ver-

acting within the scope of duties as your legal . representative. Unti your legal representative is appointed, anyone having proper' temporary custody of your property wil have your rights and duties but only with respect to that propert. G. BtJSINESSOWNERS COVERAGE PART -REF-

sion) in the same manner as they apply
to the forms they referenCe.

Endorsements referencing the Commercial General Liabilty Coverage Part apply
to the Commercial General Liabilty

Coverage Form (included in the Businessowners Coverage Part) in the same

ERENCES TO FORMS AND ENDORSEMENTS

In some instances, the Common Policy Declarations may list endorsements included in the Businessowners Coverage Part that reference:
1. The Commercial Property Coverage Part;

manner as they apply to the form they reference. H. INSURANCE UNDER TWO OR MORE COVERAGE"PARTS

If two or more of this policy's Coverage Parts
apply to' the same loss or damage, we wil not pay more than the actual amoUnt of the loss or damage.
r. INSURING COMPANIES

. 2. The Commercial General Liabilty or Liquor
Liabilty Coverage Part; or
3. Standard Property forms including, but not

limited to, the following: .
a. Building and Personal Property Cov-

In return for payment of the pi:mium, The
Travelers agrees with the Named Insured to provide the insurance afforded by a Coverage Part
forming part of this policy. That insurance wil be provided by the company indicated as insuring .conipimy in the Common POlicy.Declarations by'
i

erage Form;

. b. Business Income Coverage Form;
c. Commercial Property Conditions;

d. Condominium Association Coverage
Form;
e. Condominium Commercial Unit-Owners

the abbreviaUon of its name opposite that

Coverage Part. .

I i

Coverage Form;

f. . Causes of Loss Basic Form;
The Travelers Indemnity Company (INO) Insurance Company (PHX)

The companies listed below (each a stock company) have executed this policy, but it is valid only if countersigned on the Common Policy Declarations by our authorized representative.

The Phoenix

F) The Travelers Indemnity Company of Ilinois (TIL) * The Travelers Indemnity Company of Connecticut (TCT) The Travelers Indemnity Company of America (TIA) The Travelers Insurance Company (Ins)

The Charter Oak Fire Insurance Company (CO

*Formerly knówn as The Travelers Indemnity Company of Rhode Island (TRI)

. \. .

~~~
Secretary
Page 2 of 2

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preSidenlj
IL T315 1294
tRev. 2-95)

A448

Case 1:07-cv-00248-SLR

Document 35-2

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Page 6 of 52

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

(

EXCLUSION OF CERTAIN COMPUTER-RELATED LOSSES DUE TO DATES OR TIMES
This endorsement mOditre'Tnsurance provided under the following:

BUSINESSOWNERS COVERAGE PART
BOILER AND MACHINERY COVERAGE PART COMMERCIAL CRIME COVERAGE PART
COMMERCIAl

Q ::-_o':'~'

INLAND MARINE COVERAGE PART

A. We wil not pay for loss r'Ioss") or damage caused directly or indirectly by the following. Such Joss
("loss") or damage is excluded regardless of any other cause or event that contributes concurrently
or in 'any sequence to the loss ("Ioss") or damage.
1. The failure, malfunction or inadequacy of:

2. Any advice, consultation, design, evaluation,
inspection, installation, maintenance, repair, replacement or supervision provided, or done

by you or for you to determine, rectify or test
for, any potential or actual problems described in Paragraph A.1. of this endorsement.
B. If an excluded Cause of Loss as described in

a. Any of the following, whether belonging to

any insured or to others:

Paragraph A. of this endorsement results:
'1. In a Covered Cause of Loss under the Boiler

(1) Computer hardware, including micro-

processors;
(2) , Computer application softare;

, (3) Computer operating systems and re-

And Machinery Coverage Part, the Commercial Crime Coverage Part, or the CommerCial Inland Marine Coverage Part; or
,2. Under the Businessowners Coverage Part:

I i

i.
I

lated softare;
(4) Computer networks;
(5) Miçroprocessors (computer'chips) not ' part of any computer system; or

a. In a Covered Cause of Loss under- the

Businessowners Prope!1 Coverage Stan-,
dard Fonn, or in elevator collsion resulting from mechanical breakdown;

(6) Any other computerized or electronic
equipment or components;

b. , In a "Specifed Cause of loss", under the
Busi~essowners Propert Coverage Special Form, in elevator collsion resulting

'or

b. Any other products, and any servces,

data or functions that directly or indirectly use or rely upon, in any manner, any of the items listed in Paragraph A.1.a. of this endorsement; due to the inability to correctly recognize,
process,distínguish, interpret or accept one or more dates or times. An example is the inability of computer softare to recognize the year

from mechanical breakdown, or from
"Teft" of Covered Property,

we wil pay only for the loss (1Ioss") or damage
caused by such Covered Cause of Loss, elevator collision, Covered Cause of loss or "Theft".

C. We wil not pay for repair, replacement or modification of any items in Paragraphs A.1.a. and
A.1.b. of

2000.

this endorsement to correct any deficien-

~ies or change any features.

IL T3 53 04 98

Includes Material Copyrighted by

Insurance Servces Ofce

Page 1 of 1 '

A449

Case 1:07-cv-00248-SLR

Document 35-2

Filed 03/12/2008

Page 7 of 52

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

NUCLEAR ENERGY LIABILITY EXCLUSION EN,DORSEMENT
-!'..........:..

(Broad Form)

This endorsement modifes insurance provided under the following:

." .j......-

' BUSINESSOWNERS POLICY COMMERCIAL AUTO COVERAGE PART COMMERCIAL GENERAL LIABILITY COVERAGE PART FARM COVERAGE PART PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART LIQUOR LIABILITY COVERAGE PART POLLUTION LIABILITY COVERAGE PARt OWNERS AND CONTRACTORS PROTECTIVE LIABILITY COVERAGE PART RAILROAD PROTECTIVE LIABILITY COVERAGE PART SPECIAL PROTECTIVE AND HIGHWAY LIABILITY POLICY NEW YORK DEPARTMENT OF TRANSPORTA TION

1. The insurance does not apply:

A. Under any Liabilty Coverage, to "bodily injury" or "property damage:"
(1) With respect to which an "insured" under

c. Under any Liabilty Coverage, to "bodily in-

I i

jury" or "property damage" resulting from
' "hazardous properties" of "nuclear material,"
if:

the policy is also an insured under a

¡

nuclear energy liabilty policy issued by ,Nuclear Energy Liabilty Insurance Association, Mutual Atomic Energy ,liability Underwriters, Nuclear Insurance As-

(1) The "nuclear material" (a) is at any

"nuclear facilty" owned by or on behalf

I

of, an "insured" or (b) has been discharged or dispersed therefrom;

or any' of their suc'cassors, or would' be an insured under
sociation of Canada

(2) The "nuclear material" is contained in "spent fuel" or "waste" at any time possessed, handled, used, processed,

any such policy but for its termination upon exhaustion of its limit of liabilty; or

stored, transported or disposed of by or
on behalf of an "insured;" or

(2) Resultng from the "hazardous properties" of "nuclear material" and with

(3) The "bodily injury" or "property damage"

respect to which (a) any person or organization is required to maintain financial protection pursuant to the Atomic

arises out of the furnishing by an "in-

sured" of services, materials, parts or
equipment in connection with the plan-

Energy Act of 1954, or any law amendatory thereof, or (b) the "insured" is, or

ning, construction, maintenance, operation or use of any "nuclear facilty;" but if

had this policy not been issued would
be, entitled to indemnity from the United any agency thereof, with any person or organization. S. Under any Medical Payments coverage, to
States of America, or expenses incurred with respect to

such facilty is located within the United
States of America, its territories or possessions or Canada, this exclusion (3)

applies only to "propert damage" to
such "nuclear facility" and any property

thereat
2. As used in this endorsement:
"Hazardous properties" include radioactive, toxic

jury" resulting from the "hazardous properperson or organization.

"bodily in-

ties" of "nuclear material" and arising out of the operation of a "nuclear facilty" by any

or explosive properties; "Nuclear material" means "source material," "Spe_
cial nuclear material" or "by-product material;"

Il 00 21 11 85

Copyright, Insurance Services Offce, Inc., 1983, 1984

Page 1 of 2

A450

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Case 1:07-cv-00248-SLR

Document 35-2

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Page 8 of 52

"Source material," nspecial nuclear material," and
(

"by-product material" have the meanings given them in the Atomic Energy Act of 1954 or in any
law amendatory thereof;

(e) Any equipment or device used for th~
processing,. fabricating or alloying of "special
nuClear material" if at any time the total

.Spent fuel" means any fuel element or fuel com-

ponent, solid or liquid, which has been .used or
exposed to radiation.in-.a "nuclear reactor;"

amount of such material in the custody of the "insurep" at the premises where such equip-

ment or device is located consists of more .
than 25 grams of plutonium or uranium 23~,....,.,..~. or any combination thereof, or more than
250 grams of uranium 235;

"Waste" means any waste material (a) containing "byproduct material" other than the tailngs or wastes

produced by the extraction or concentration of
uranium or thorium from any ore processed primari~ Iy for its "source material" content, and (b) resultng from the operation by any person or organization of

Cd) Any structure, basin, excavation, premises or

place prepared or used for the storage or

.any "nuclear facility" included under the first two
paragraphs of the definition of "nuclear facility."

disposal of "waste;" and includes the site on which any of the foregoing is

located, all operations conducted on such site and
all premises used for such operations;

"Nuclear facilty" means:
(a) Any "nuclear reactor;"

.(b)Any equipment or ~evice designed or used
for (1) separating the isotopes of uranium or

"Nuclear reactor" means any apparatus designed or used to sustain nuclear fission in a self-supporting chain reaction or to contain a critical mass of fis-

plutonium, (2) processing or utilzing "spent
fuel," or (3) handling, processing or packaging "waste;"

sionable llaterial; "Property damage" includes all forms of radioactive
contamination of property.

Page 2 of 2

Copyright, Insurance Services Offce, Inc., 1983, 1984

il 00 21 11 85
A451

Case 1:07-cv-00248-SLR

Document 35-2

Filed 03/12/2008

Page 9 of 52

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

DISTRICT OF COLUMBIA CHANGES _ CANCELLATION AND NONRENEWAL
This"èhdörsement modifies insurance provided under the following:
. "::. . .,J'_"

BOILER AND MACHINERY COVERAGE PART BUSINESSOWNERS POLICY COMMERCIAl CRIME COVERAGE PART COMMERCIAL GENERAL LIABILITY COVERAGE PART COMMERCIAL PROPERTY COVERAGE PART COMMERCIAL INLAND MARINE COVERAGE PART EMPLOYMENT-RELATED PRACTICES LIABILITY COVERAGE PART LIQUOR LIABILITY COVERAG!= PART

POlLUTIONUABllITY COVERAGE PART
PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART PROFESSIONAL LIABILITY COVERAGE PART

A. Paragraph 2. of the CANCELLATION Common
Policy Conditon is replaced by the following:

3. You have transferred your property or other
interest to a person other than you or your . beneficiary, unless the transfer is permitted
under the terms of the

We may canceL. this policy by mailng or delivering to the first Named Insured written notice of cancellation at least 30 days before the effective date of.
cancellation. At least 5. days before sending notice to the first Named Insured, we will notify the agent '. or broker, if any, who wrote the policy.

policy; Qr

4. The propert, interest or use of the property or
interest has materially changed with respect to its insurabilty. B. The following is added:
NON

If this policy has been in effect for 30 days or less

and is not a renewal of a policy we issued, we
may cancel this policy for any reason.

RENEWAL

If this policy has been in effect. more than 30
days, or if this. policy is a renewal of a policy we issued, we may cancel this policy only for one or
more of the following reasons:

We may elect'not to renew this policy by mailng . or deliveríng written notice of nonrenewal to the first Named Insured's last mailing address known

to us. We wil mail or deliver the notice at least 30 . days before the expiration of the policy. At least 5
days before sending notice to the first Named In-

1. You have refused or failed to pay a premium
due under the terms of the policy;

sured, we wil notify the agent or broker, if any,
who wrote the policy. If notice is mailed, proof of

2. You have made a material and wilful misstatement or omission of fact to us or our employees, agents or brokers in connection with any application to or claim against us;

mailng wil be suffcient proof of notice. Delivery
of

the notice wil bè the same as mailng.

IL 02780498

Copyright, Insurance Services Offce, Inc., 19~7

Page 1 of 1

A452

Case 1:07-cv-00248-SLR Document 35-2 One Towr Square. Harrd, Conne 06183
BUSINESSOWNERS COVERAGE PARt DEClRATIONS
(.

Filed 03/12/2008

li~~1~
W-68-479H825-3- TIA-99 .

Page 10 of 52

OFFICE DELUXEPAC " POUCYNO.: PlA ISSUE DATE:
FORM OF BUSINESS: NON-PROFIT ORG.

10-14-99

DECLARATIONS PERIOD: From 07-22-99 to 07-22-0012:01 AM. Standard Time at your mailng adre.

COVEGES AND UMITS OF INSURANCE Insrance appies only to an item for which a "limit" or the word
"INClUDEon"is shown.

BUSINESSOWNERS PROPERTY COVERAGE:

PREM. BlD.

NO. NO.

PREM. NO.

01 01
BUILDINGS:

BLDG. NO.

limit of Insurance:
Loss Aajustent Basis

$ $

$
$

Inflation Guard:
Exerior Building Glass Deductible:

BUSINESS PERSONAL PROPERTY:

limit of Insurance:
los Adjustent Basi:

$ 100.00

$

Inflation Guard:
Exerior Building Glass:
i '1

Exerior Building Glas Deductible:

$

$

BUSINESS INCOME: Li mi t-Actua 1 1 as up to 12 Coseti ve Moths.

--=~ ii;e
!!~

~-=

== ¡;¡; ~-. ==

--=
=:: ===

---

DEDUCTIBLE AMOUNT: BusinesSer Propert Covere: $

250 Per Ocrrence.

~-

COMMERCIAL GENERL LIABILIT COVERAGE-

OCCURRECE FORM General Aggreate (except Proucts-mpleted Operations) limit
ProuctS-ompleted Operations Aggregate limit
Persnal and Advertsing

UMiTS OF INSURANCE

$ 2,000.000
$ 2.000.0.9'

Injury limit

Each Occurrce limi

Fire Damage IUmit (anyone fire)

$ 1,000,000 $ 1,000,000

Medical Payments limit (anyone person)
. MORTGAGE HOI.DER-BUILDING COVERAGE ONLY:

$ 300,000

$ 5,000

I.
i i !

SPECIAl. PROVISIONS:

COMMERCIAL GENERA LIABILITY COVERAGE IS SUBJECT TO A GENERAL AGGREGATE LIMIT
IMP TO 0109 98 ~Page 1'of 1)

,,- .0 _.. __. .._.0__. __.

A453

Case 1:07-cv-00248-SLR

Document 35-2

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Page 11 of 52
BUSINESSOWNERS

BUSINESSOWNERS PROPERTY COVERAGE SPECIAL FORM
Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and

what is or is not covered.
Throughout this po/ley the words "you" and "your" refer to the Named Insured shown in the Dedà'rations. The
words "we," "us" and "our" refer to the Company providing this insurance.

Other words and phrases that appear in quotation marks have special meaning. Refer to SECTION G-PROPERTY DEFINITIONS.

A. COVERAGE-BUILDING, BUSINESS PERSONAL PROPERTY AND BUSINESS INCOME

(d) Appliances used for refrigerating,

We wil pay for direct physical loss of or damage to Covered Propert at the premises described in the Declarations caused by or resulting from a
Covered Cause of Loss.
We wil pay for the actual loss of Business Income . you sustain due to the hecessary suspension of

ventiating, cooking, dishwashing
or laundering;

(5) If not covered by other ins.urance:
(a) Additions under constrction, al-

terations and repairs to the building or structure;

your "operations" during the "period of restoration." The suspension must be caused by direct

(b) Materials, equipment, supplies and temporary structures, on or
within 100 feet of the

physical loss of or damage to propert at the
premises described in the Declarations, including

personal property in the open (or in a vehicle)
within 100 feet of the described premises, caused by or resulting from a Covered Cause of Loss.

premises, used for making additions, alterations or repairs to the
bUilding or structure.

described

b. Business Personal Propert located in
or on the buildings described in the Decla-

1. . Covered Propert Covered Propert, as used in this Coverage Form, means the following types of propert
for which a Limit of Insurance is shown in the

rations or in the open (or ili a vehicle)
within 100 feet of the described premises, including:
(1) Propert oWned by you and used in

Declarations:

a. Building, meaning the building or structure described in the Declarations, including:

your business; .
(2) Property of others that is in your tare, custody or control; and

(1) Completed additions; (2) Permanently installed:
(a) Fixtures;

(3) Tenant's improvements and betterinstallations or.ac!ditions:

ments. Improvements and better-

. ments are fixtures, alterations,
(a) Made a part of the building or structure you occupy but do. not
own; and
(b ) You acquired or made at your expense but cannot legally remove.
2. Propert and Associated loss Costs Not

(b) Machinery; and

(c) Equipment;

(3) Outdoor fixtures; (4) Personal propert owned by you that
is used' to maintain or service the

building or structure or the premises,
including:
(a) Fire extinguishing equipment;
(b) Outdoor fumiture;
(e) Floor coverings; and

Covered
Unless the following is added by endorsement

to this policy, Covered Property does not include:
a. Aircraft;

"
MP T1 02 08 92

b. (1) Motor vehicles;

Page 1 of 21

A454

BüSINESSOWNERS

Case 1:07-cv-00248-SLR

Document 35-2

Filed 03/12/2008

Page 12 of 52

(2) Any other self-propelled vehicle which
"

is:

o. Exterior building glass except as provided

(

(a) Required to be licensed if used
on public roads; or

under Coverage Extensions;
p. Items with numismatic value, including but

(b) Operatedprincipaiiy away from
the described premises;

not limited to coins, paper currency and bank notes and stamps with philatelic
value;

c. Beach or diving platforms, piers, pilings, . wharves or docks;
d. Bridges, dams and dikes;

q. Collections' whose value is based on antiquity or rarity; and

e. Contraband, or propert in the course of
ilegal trnsportation or trade;

. r. Bullon, gold, silver, platinum and other precious alloys or metals, except if they
are used in your "operations" ("theft" limitation applies.).

f. The cost of excavating, grading, backfill-

ing or filJng, reclaiming or restonng land
or water;

3. Business Income
a. Business Income means the:

g. Land (including land on which the propert is located), water and growing crops;

(1) Net Income (Net Profit or Loss before
income taxes) that would have been
earned or incurred;

h. Outdoor radio or television antennas, (including their lead-in wiring, masts or towers), f~nces, retaining walls not part of the building, lawns, trees, shrubs and plants

(2) Continuing normal operating expenses incurred, including payroll; and
(3) Includes "Rental Value."

(other than "stock" of trees, shrubs or plants) walks, roadways, patios or other
paved surfaces, all except as provided in
the Outdoor Propert Coverage Exten-

b. We wil only pay for loss of Business Income that occurs within. 12 consecutive months immediately following the date of

sion;
i. Watercraft (including motors, equipment

direct physical/ass or damage.

and accessories) while afloat;
j.' Accounts, bils, deeds, or evidence~ of

c. We wil also pay for the actual/ass of
Business Income you sustain during the period that:

debt;
k. The cost

"to research, repl~ceor restore. the infonnation on valuable papers and

(1). Begins on the date propert is actu..
ally repaired, rebuilt. or replaced and "operations" are resumed; and

. records, including those which exist on electronic or magnetic media, except as
provided in the Coverage Extensions;

J. Foundations of buildings, strctures, machinery or boilers, if their foundations are

(2) Ends on the earlier of: (a) The date you could restore your
"operations" with reasonable

below: .

speed, to the condition that would have existed if no direct physical
loss or damage

(1) The lowest basement floor; or (2) The surface of the ground, if there is no basement;
m. Property that Îs covered under another

occurred; or

(b) Thirty consecutive days after the
date determined in c.(1) above.
4. Covered Causes of Loss

coverage form of this or any other policy

in which it is more specifically described,

RISKS OF DIRECT PHYSICAL LOSS unless the loss is:
a. Limited in Paragraph A.5., Limitations; or

except for the excess of the amount due
(whether you can collect on it or not) from

that other insurance;
'n. Underground

b. Excluded in Section B., Exclusions.
5. Limitations

pipes, flues or drains;

a. We will not pay for loss of or damage to:

Page 2 of 21

MP T1 02 08 92

A455

"'"

Case 1:07-cv-00248-SLR

Document 35-2

Filed 03/12/2008

Page 13 of 52
BUSINESSOWNERS

(1) The intenor of any building or structUre or to personal propert in the

(1) $2,500 for all furs, fur garments and
garments tnmmed with fur.

building or structure, caused by or re-

sulting from rain, snow, sleet, ice,
sand or dust whether driven by wind or not, unless:
...i..

(a) The building or structure first sustains damage by a Covered Cause of Loss to its roof or walls
through which the rain, snow,

(2) $2,500 for all jewelry, watches, watch movements, jewels, pearls, precious and semi-precious stones, bullon, gold, silver, platinum and other precious al/oys,or metals. This limit does

not apply to jewelry and watches
-wort $100 or less per item.

sleet, .ice, sand or dust enters; or

(3) $2,500 for all patterns, dies, molds
and forms.

(b) The loss or damage is caused by or results from thawing of snow,
sleet or ice on the building or

d. We wil not pay for loss or damage to
Covered Propert at a building shown in the Declarations: .

structure.

(2) Steam boilers, steam pipes, steam
engines, or steam turbines caused by

(1) By vandalism while the building is
"unoccupied," if it has been "unoccu-

or resultng from any condition or
event inside such equipment. But we will pay for loss of or damage to such

pied," for 60 consecutive days immediately before the loss.

equipment caused by or. resulting from an explosion of gases or fuel within the furnace of any ñred vessel
or within the flues or passages

(2) By any cause of loss while:

(a) The building is "unoccupied," if it

has been "unoccupied" for 12

consecutive months immediately

through which the gases of combustions pass.

before the loss.
(b) The building is "vacant," if it has been "vacant" for 60 consecutive
days immediately before the loss.

(3) Hot water boilers or other water heating equipment caused by or resulting

from any conditon or event inside
such boilers or equipment, other than
explosion.

e. We wil not pay for any loss of Business Income caused by direct physical loss of
or damage to Electronic Media and Récords after the longer of:
(1) 60 consecutive days from the date of

b. We wil not pay for loss of or damage to
the following types of propert unless
caused

by the "s'pecified causes of loss."

direct physical loss or damage; or

(1) Animals,

and then only if they are

kiled or their destruction is made necessary.

(2) The period, beginning with the date of direct physical loss or damage, necessaiy to repair, rebuild or replace

(2) Fragile articles such as glassware,
statuary, marbles, chinawareand porcelains, if broken. This limitation does

with reasonable speed and similar

quality, other property at the described premíses which suffered loss
or damage in the same occurrence.
Electronic Media and Records are:
(1) Electronic data processing, recording

not apply to: .
(a) Glass that is part of a building or structure;
(b) Containers of propert held for

sale; or

or storage media such as films, tapes, discs, drums or cells;
(2) Data stored on such media; or

(e) Photographic or scientific instrment lenses. c. For loss or damage by "theft," the most we wil pay in anyone occurrence for the
following types of propert is:

(3) Programming records used for electronic data processing or electronically controlled equipment.

MP T1 02 08 92
Page 3 of 21

A456

BU-SINESSOWNERS

Case 1:07-cv-00248-SLR

Document 35-2

Filed 03/12/2008

Page 14 of 52

Example No.1 :

riod. Regardless of the number of
premiums paid, no limit of Insurance
cumulates year to year or period to

(

A Covered Cause of loss damages a

computer on June 1. It takes until Sep..:1-1'.1. . !.

tember 1 to replace the computer, and until October 1 to restore the data that was lost when the damage occurred.

period.

(4) We wil not pay for loss resulting from
the dishonest acts of any "employee":
(a) If coverage

We wil only pay for the Business Income
loss sustained during the period June 1September 1. loss during the period September 2-0ctober 1 is not covered.
Example No.2:

for that "employee"

was either cancel/ed or excluded from any previous insurance pol-

icy of yours providing "employee
dishonesty" coverage.

(b) Occurring immediately after discovery. by:
i. You; or
ii. Any of your parters, offcers
or directors not in col/usion

A Covered Cause of loss results in the
loss of data processing programming re

cords on August 1. The records are replaced on October 15. We wil only pay for the Business Income loss sustained
during the period August 1-September 29
(60 consecutive days). loss during the

with the "employee," of any
dishonest act committed by that "employee" before or after being hired by you.

period September 3D-October 15 is not
COvered.
6. Additional Coverages

. Unless otherwise stated, payments made under the fol/owing Additional Coverages wil not

(e) Occurring after the effectivèdate stated in our written notice to you that the "employee" is no longer

covered. That effective date wil
not be .Iess than 15 days after the
date we mail

increase the ;:pplicable limits of Insurance.
a. "Employee Dishonesty"

the notice.

(1) We wil pay for loss of or damage to
Business Personal Propert resulting
direcUy from "Employee Dishonesty."

(5) We wil pay for covered loss or dam-: age only if discovered no later than one year from the end of the Policy Period.
(6) If, during the period of any prior "Empioyee Dishonesty" insurance, you (or

(2) The most we wil pay for loss or darn
smallest of the following:

age in anyone Çlccurrence is the

(a) The limit for Business Personal
Property stated in the Declaration

. any predecessor in interest) sustained Joss or damage that you could
have recovered under that insurance,

except that the time within which to
discover loss or damage has expired, we wil pay for it under this Additional Coverage, subject to the following:

(If. more than one building is in. sured, the limit at the building

having the highest Business Personal Propert limit wìl apply.); or
(b) $250,000 (if the Business. Per-

sonal Propert limit at any building is greater than this amount).

(a) This insurance became effective at the time of cancellation or termination of the prior insurance;

Occurrence means all loss caused by or involving the same "employee(s),"

whether the result of a single act or
series of acts.

(b) The loss or damage would have been covered by this insurance had it been in effect when the acts or events causing the loss or
damage were committed or occurred; and

(3) We will pay for loss or damage you sustain through acts committed or
events occurrng during the Policy Pe-

Page 4 of 21

MP T1 02 08 92

A457

Case 1:07-cv-00248-SLR

Document 35-2

Filed 03/12/2008

Page 15 of 52
BUSINESSOWNERS

(e) This insurance is limited to the
lesser of the amount recoverable under:
i. This Additonal Coverage up
to the applicable limit of In-

ance from which' the water or steam es-

capes.
We will not pay the cost of repairing or replacing the system or appliànce itself;

surance under this Coverage Form, as of its effective date;

but we wif pay the cost to repair or replace damaged parts of fire extinguishing equipment if the damagei

or Îi. The prior "Employee Dishon-

esty" insurance, had it remained in effect.
b. Collapse

(1) Results in sprinkler leakage; or
(2)- Is directly caused by freezing.
d. Debris Removal
I

'We wnJ pay for loss or damage causee! by

(1) We wil pay your expense to remove
debris of Covered Propert caused by

I

or resulting' from risks of direct physical
loss involving collapse of a building or any

or resultng from a Covered Cause of
loss that occurs during the pOlicy pe-

part of a building caused only by one or
more of the following:
(1) The Hspecified causes of loss" or

riod. The expenses wil be paid only if

they are reported to us in writing
within 180 days of the date of direct
physical loss or damage.

breakage of building glass, all only as
insured against in this Coverage

Form;
(2) Hidden decay;

(2) The most we wil pay under this Additional Coverage is 25% of:

(3) Hidden insect or vennin damage;

(al' The amount we pay for the direct
physical loss or damage; plus

,(4) Weight of people. or personal prop-

ert;

(b) The deductible in this policy appli-

(

(5) Weight of rain that collects on a roof; . (6) Use of defective material or methods in constrction, remodeling or renovation, if the collapse occurs dunng the
course of the constrction, remodel-

cable to that loss or damage. But this limitation does not apply to any additional debris removal limit
provided in paragraph (3) below.

ing or renovation.

(3) (a) The sum of loss or damage and debris removal expense exceeds
the limit of Insurance; or

We wil not pay for loss of or damage to
the following types of propert, if otherwise covered in this policy, under items.
loss or damage is a direct result of the
collapse of a building:
awnings; gutters and' downspouts;

(b) The .debris removal expense exceeds the amount payable under the 25% Debris Removal cover-

(2). (3), (4); (5), and (6) above, unless the

age limitation in paragraph (2)
above;

we wil pay up to an additional
$25,000 for each location in anyone
occurrence under the Debris Removal Additional Coverage:

yard fixtures and outdoor swimming pools. Collapse does not include settling, cracking, shrinkage, bulging or expansion.

(4) This Additional Coverage does not
apply to costs to:

c. Building Repairs Due to Water Damage
If loss or damage caused by or resulting from a covered water damage occurs, we

(a) Extract "pollutants" from land or
water; or

wil also pay the cost to tear out and replace any part of the building or structure to repair damage to the system or appli-

(b) Remove, restore or replace polluted land or water.

MP T1 02 08 92
Page 5 of 21

A458

SUSINESSOWNERS

Case 1:07-cv-00248-SLR

Document 35-2

Filed 03/12/2008

Page 16 of 52

e. Pollutant Cleanup and Removal

We wil pay your expense to extract .pollutants" from land or water at the described 'premises, if the. discharge, dispersal, seepage, migration, release or es-

(2) Required by local ordinance.
The amount payable under this Additional

Coverage is in additon to the Umits of
Insurance.
h. Temporary Relocation of Propert

cape of the "pollutants" is caused by or

results froni a Covered Cause of Loss
which 'occurs:

(1) On the described premises; and
(2) During the policy period.

..lf..CQvered Propert is removed from the described premises and stored temporarily at a location you own, lease or operate
while the described premises is being

The expenses wil be paid only if they are reported to us in writing within 180 days of the date on which the Covered Cause of

renovated or remodeled, we wil pay for
loss or damage to that stored property:

(1) Caused by or. resulting from a Covered Cause of Loss;

Loss occurs.
This Additional Coverage does not apply to costs to test for, monitor or assess the existence, concentration or effects of .pol-

(2) Up to $50,000 at each temporary location; and.

lutants." But we wil pay for testing which.
is performed in the course of extracting

(3) During the storage period of up to 90
consecutive days but not beyond expiration. of this policy;
unless the stored property is more specifically insured,
i. Extra Expense
We wil pay necessary

the "pollutants" from the land or water.

The most we wil pay for each described
premises under this Additional Coverage is $10,000 in anyone year commencing
with policy inception.

The amount payable under this Additional

incur dunng the "period of restoration"
that you would not have incurred if there had been no direct physical loss of or

Extra EXpense you

Coverage is in additon to the Umits of
Insurance.
f. Preservation of Propert

damage to propert at the premises descnbed in the Declarations. including personal propert in the open (or in a vehicle) within 100 feet of the descnbed premises,

If it is necessary .to move Covered Propert from the described premises to pre-

serve it from loss or damage . by a

caused by or resulting from a Covered

Covered Cause of Loss, we wil pay for any direct physical loss of or damage to

Cause of Loss. .
Ext Expense means expense incurred:
(1) To avoid or minimize the suspension
of business and to continue "opera-

that propert
(1) While it is being moved or while temporarily stored. at another location; and.
within 30 days after the property is first moved. g. . Fire Department Service Charge
When the fire department is called to save

tions":
(a)' At the described premises; or

(2) Only if the loss or damage occurs

(b) At replacement premises or at
temporary locations, including:
i. Relocation expenses; and
i I i i

ii. Costs to equip and operate

or protect Covered Propert from a Cov-

the replacement or temporary

ered Cause of Loss, we wil pay up to
$1,000 for your liabilty for fire departent
servce charges:

locations.

I i.

(2) To minimize the suspension of business if you cannot continue "opera-

tions. "
(3) (a) To repair or replace any property;

I i i

(1) Assumed by contrct or agreement
prior to loss; or

or

Page 6 of 21

MP T1 02 08 92

A459

Case 1:07-cv-00248-SLR

Document 35-2

Filed 03/12/2008

Page 17 of 52
BUSINESSOWNERS

(b) To research, replace or restore

the lost information on damaged valuable papers and records to
the extent it reduces the amount of loss that otherwise would have been payable under Business IncolT.~,,,.,,.", ,.

Your Business Personal Propert insurance is extended to apply to loss resulting
from the acceptance in good faith of:

(1) Money orders not paid upon presentation; or
(2) Counterfeit paper currency.
:.ì;i'l'" b. Newly

We wil only' pay for Extra Expense
that occrs witin 12 consecutive

months after the date of direct physical loss or damage. This Additional Coverage is not subject to the Limits of Insurance.
j. Civil Authority
We wil pay for the actual

ert

Acquired or Constructed Prop-

The insurance under this Extension will be in addition to the applicable Limits of Insurance.
(1) Your Building insurance is extended
to apply to:

loss of Business

Incom.e you sustain and necessary Extra Expense caused by action of civil author-

(a) Your new buildings or building additions while being buil on the de-

it that prohibits access to the described
premises due to direct physical

scribed premises; and

. damage to propert other than at the described premises, caused by or resulting from a Covered Cause of Loss.

loss of or

(b) Buildings you acquire' at locations, other than the described

premises, intended for:

i. . Use similar to that of the
building described in the

This coverage wil apply for a period of up
to two consecutive weeks from the date of that action of civil authority.
k. Arson and Theft Reward

Declarations; or
ii. Use as a warehouse for your

l
I

Covered Propert.

We wil pay a reward of 25% of a paid
. claim up to a maximum of $5,000 for information leading to: .
. (1) an arson conviction in connection with

most we wil pay for loss or damage under this Extension is $100,000 at each location.
The

a covered fire or explosion loss, or
. (2) a theft conviction in connection with a covered theft loss.

(2) Your Business Personal Propert insurance is extended to apply to that
propert at any location you acquire

other than at fairs or exhibitions.

This is the most we wil pay for anyone
occurrence under this policy or any combination of policies.
The amount payable under this Additional

The most we wil pay for loss. or damage under this Exension is '$100,000 at each location.

(3) Insurance under this Extension for

Coverage is in addition to the Limits of Insurance.
7. Coverage Extensions
Subject to. the Exclusions, Conditions and

each newly acquired or constructed propert wil end when any of the fol-

lowing first occurs:
(a) This policy expires;

limitations of this form, you may extend this
insurance as indicated below.

(b) 30 days expire after you acquire
or begin to construct the property;

(e) You report values to us; or

Unless otherwise stated, payments made under the following Coverage Extensions wil not increase the applicable Limits of Insurance.

(d) The property is more specifcally insured.

a. Money Orders and Counterfeit Paper Currency

We wil charge you additional premium for values reported from the

MP T1 020892

Page 7 of 21

A460

Case 1:07-cv-00248-SLR
BUSINESSOWNERS

Document 35-2

Filed 03/12/2008

Page 18 of 52

date construction begins or you acquire the property_

The insurance provided by this Coverage Form is extended to apply to your outdoor

c. Business Income and Extra ExpenseNewly Acquired Locations

propert on the descnbed premises as follows:

(1) Yaur Business Income and Exta Expense Coverage is extended ta apply
ta propert at any location' you ac-

(1) Fences, retaining walls not part of a

building, lawns, trees, shrubs and

plants (other'1han "stock" of trees,
shrubs, or plants) walks, roadways,

quire other than at fairs or exhibitons.

(2) The mast we wil pay for loss under
this Extensian is $100,000 at each lo-

patios or other paved surfaces for
loss or damage by the following
Causes of Loss:
(a) Fire;

cation.

(3) . Insurance under this extensian far
each newly acquired lacatian wil end
when any .of the following first .occurs:
(a) This policy expires;

(b) lightning;

(e) Explosion;

(d) Riot or Civil Commotion; or
(e) Aircraft

(b) 30 days expire after yau acquire or begin ta constrct the praperty;
(cl You.repart values to us;

(2) Radio and television antennas (including Satellte dishes) for loss or

(d) The Business Income or Extra

Expense is mare specifically insured.

damage by the Causes of Loss listed above and:
(a) Windstorm;
(b) Hail;

We wil charge you additional premium for values reported from the
date you acquire the property.
(
\.

(c) Fallng Objects;
(d) Vehicles;

d. Business Personal Propert Off Prem-

ises
Your -Business Personal Propert insur. anee is extended to apply to such propert while it is in course of transit from the descnbed premises or témporarily away
from the descnbed premises at yaur

(e) Sinkhole Collapse; or

(f) Volcanic Action

The most we wil pay for loss or damage
under this Extension is $5,000 'at each descnbed premises, but not more than $500

home or a premises 'you do not ciwn,
lease or operate.
This Extension does not apply ta propert:

for anyone tree., shrub or plant nor
$1,000 for any antenna.
f. Signs

Your Building or Business Personal Propert insurance is extended to outdoor

(1.) While in the custody of the United States Postal Servce;

signs attched to the building or on or
within 100 feet of the descñbed premises.
g. Valuable Papers and Records-Cost of

(2) Rented or leased to others;
(3) After delivery to custamers; .or

(4) Temporanly at a premises for more
than 30 cansecutive. days, except

Research
The insurance under this extension wil be
in addition to the applicable Limits of In-

maney and securities at a banking premises.
e. Outdoor Propert

surance.
Your Business Personal Propert insurance is eXtended to apply to your costs to research, replace or restore the lost infor-

The insurance under this Extension wil

be in addition to the applicable limits of
Insurance.
(,:

mation on lost or damaged valuable papers and records, including those which exist on electronic or magnetic media, for

Page 8 of 21

MP T1 02 08 92

A461

"

Case 1:07-cv-00248-SLR

Document 35-2

Filed 03/12/2008

Page 19 of 52
BUSINESSOWNERS

/
i, .

which duplicates do not exist The most we wil pay under this Exension is $1,000
at each.described premises.
h. Personal Propert and Effects

you incur in preparing claim data when we require it. This indudes the cost of taking

inventories, making appraisals and preparing other documentation to show the
extent of loss.

Your Business Personal i;ropert insurance is extended to apply to personal.

The most we wil pay for preparation of
claim data under.this Exension is $1,000. We wil not pay for any expenses biled by and payable to insurance adjusters.
k. Building Damage by Theft

propert and effects (other than Business"'~' Personal Propert) owned by you or oth-

ers.
The most we wil pay for loss or damage
under this Extension is $5,000 at each described premises.
i. Exterior Building Glass
(1) The insurance provided by this Covglass breakage and

Your Business Personal Propert insurance is extended to cover damage by
"theft" to that portion of such building you occupy, but only if you are liable for such damage and you do not own the building.

erage Form is extended to cover damage to glass by chemicals accidentally or mali-

We shall not be liable under this Exten-

sion of Coverage for damage by fire or
explosion, or to glass (other than glass building blocks) or to any lettering, ornamentation or burglar alarm tape on glass.

ciously applied to glass:
(a) If the Building desGribed in the

Declarations is insured; or

(b) If Business Personal Property is
insured and coverage' for glass is shown as included in the Declarations.

B. . EXCLUSIONS

1. We wil not pay for loss or damage caused
directly or indirectly by any of the following. Such loss or damage is excluded regardless of any other cause or event that contributes
concurrently or in any sequence to the loss.
a. Ordinance or Law.

This coverage applies to all glass in
the exterior walls of a described build-

Ing (including all lettering and ornamentation). .
(2) We wil also

The . enforcement of any building ordinance or law:
(1) Regulating the constrction, use or

pay for necessaiy ex-

penses incurred to:
(a) Put up temporaiy plates or board up openings;

repair of any buildings; or

(2) Requiring the tearing down of any
building, including the cost of removing its debris.
b. Earth Movement
(1) Any eart movement (other

(b) Repair or replace encasing

frames; and

(e) Remove or replace obstructions.

(3) Paragraph A.4., Covered Causes of.
loss, and Section B., Exclusions, do

than sink-

not apply to this Extension except for.

hole collapse), such as an eartquake, landslide, mine subsidence,
eart sinking, rising or shifng. But jf loss or damage by fire or explosion results, we wil pay in each occurrence for that resulting loss or damage.

(a) Governmental Action;

(b) Nuclear Hazard; and
(e) War and Mi/taiy Action.
j. Claim Data

The insurance under this extension wil be
in addition to the applicable limits of

In-

surance.

(2) Volcanic eruption, explosion or effusion. But if loss or damage by fire or volcanic action results, we wil pay for

The insurance provided by this Coverage
\
Form is extended to apply to the expense

that resultng loss or damage.

MP T1 02 08 92

Page 9 of 21

A462

Case 1:07-cv-00248-SLR
BUSINESSOWNERS

Document 35-2

Filed 03/12/2008

Page 20 of 52

Volcanic action means direct loss or

damage resulting from the eruption of

(3) Insurrection, rebellon, revolution,

a volcano, when the loss or damage
is caused by:

usurped power or action taken by
governmental authority in hindering or

defending against any of these.
g. Water

(a) Airborne volcanic blast or airborne shock waves;
. (b) Ash, d(j~( 'or particulate matter;' or
(c) Lava flow.

(1) Flood, surface water, waves, tides, tidal waves, overfow of any body of
water, or their spray, all' whether

......¡..... ~ oA

All volcanic eruptions that occur

driven by wind or not;
(2) Mudslide or mudflow;

within any 168-hour period wil constitute a single occurrence.

Volcanic action does not include the cost to remove ash, dust or partculate matter that does not cause direct physical loss of or damage to Coy-.

(3) Water which backs up through sewers or drains, except for any resulting insured direct physical. loss by water back-up, other than from a septic tank

or cesspool, when the cause of the
back-up onginates on the designated

ered Propert.
c. Governmental Action

premises;
(4) Water under tle ground surface
pressing on, or flowing or seeping

Seizure 'or destruction of propert by order of governmental authority.

But we wil pay for acts of destrction ordered by governmental authonty and

through:
(a) Foundations, walls, floors or

done at the time of a fire to prevent its
spread, if the fire would be covered under
this policy.

paved surfces; .
(b) Basements, whether paved or not; or

d. Nuclear Hazard

(c) Doors, windows or other openings.
But if loss or damage by fire, explosion or

Nuclear reaction or radiation, or radioactive contamination, however caused.

But if loss or damage by fire results, we
wil pay for that resultng loss or damage.
e. Off Premises Services

sprinkler leakage results, we will pay for that resultng Joss or damage. 2. We wil not pay for loss or damage caused by
or resulting from any of the following:
a. Artficially generated electncal current, in-

The failure of power or other utilty seryice
supplied to the described premises, .how-

ever caused, if the cause of the failure
occurs away from the described prem-

cluding electric arcing that disturbs electrical devices, appliances or

wires.

ises.
But if loss or damage by a Covered

But if loss or damage by fire results, we
wil pay for that resulting loss or damage.
b. Delay, loss of use or loss of market.

Cause of loss results, we wil pay for that
resulting loss or damage.
f. War and Miltary Action

c. Smoke, vapor or gas from agricultural
smudging or industrial operations.
d. (1) Wear and tear;

(1) War, including undeclared or civil war;

(2) Warlike action by a military force, including action in hindering or defending against an actual or expected

(2) Rust, corrosion, fungus, decay, deterioration, hidden or latent defect or
any quality in propert that causes it
to damage or destroy itself;

attack, by any government, sovereign or other authority using military personnel or other agents; or

(3) Smog; (4) Settling, cracking, shrinking or expansion;

(
Page 10 of21

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Page 21 of 52
BUSINESSOWNERS

(5) Insects, birds, rodents or other animals;

(1) Acting alone or in collusion with others; or

(

(6) Mechanical breakdown, induding rup-

ture or bursting caused by centrifugal force, However, this does not apply to

(2) Whether or not occurring during the
hours of employment.
This exclusion does not apply to acts of

any resulting loss or damage caused
by elevator collsion; or
(7) The following causes of loss to per-

destruction by your "employees, ø but

"theff by "employees" is not covered except as provided under Additional Cover-

sonal propert:
phere; .

ages.
i. Voluntary parting with any property by you

(a) Dampness or dryness of atmos(b) Changes in or extremes of temperature;
(c:) Marring or scratching; or
(d) Evaporation, loss of weight, con-

or anyone else to whom you have entrusted the property if induced to do so by

. any fraudulent scheme, trick, device or false pretense by any person who is not
an "employee."

tamination, exposure to light or
change in flavor, color, texture or finish.

This exclusion does not apply to propert
in the custody of carriers for hire.
j. Rain, .snow, sand, dust, ice or sleet to per-

But if loss or damage by the "specifed
causes of loss" results, we wil pay for. '. that resulting loss or damage.
e. Explosion of steam boilers, steam pipes,

sonal property in the open.
k. Collapse, except as provided in the Addi-

tional Coverage for Collapse. But if loss or

steam engines or steam tùrbines owned or leased by you, or operated under your

damage by a Covered Cause of loss results at the described premises, we wil
pay for that resulting loss or damage.
i. Discharge, dispersal, seepage, migration,

control. But if loss or damage by fire or cQmbustion explosion results, we wil pay
for that resulting

release or escape of "pollutants" unless

loss or damage. We wil

the release, discharge or dispersal is itself
caused by any of the "specified callses of. loss." But if loss or damage by the "speci-

also pay for loss or damage caused by or

resulting from the explosion of gases or
fuel within the fumace of any fireCl vessel

or within the flues or passages through
which the gases of combustion pass.

fied causes of loss" results, We wil pay for

the resulting damage caused by the
. "specified cause of loss."

f. . Continuous or repeated seepage or leakage of water or other liquids that occurs
over a period. of 14 days or more.

m. Legal process involving appropriation of
propert for any reason or. repossession

g. Water or 'other liquid that leaks or flows
from plumbing, heating, air conditioning or

of propert for noncompliance with a loan agreement.
n. Default on any credit sale. loan, or similar transaction.
o. Propert that is missing, where the only

other equipment (except fire protection

systems) caused by or resultng from
freezing, unless:

evidence of the loss or damage ¡sa short-

(1) You do your best to maintain heat in
the building or strcture; or

(2) You drain the equipment and shut off

age disclosed on taking inventory, or other instances where there is no physical evidence to show what happened to the
propert. This exclusion does not apply to

the. water supply if the heat is not
maintained.

"money" and "securities."

h. Dishonest or criminal acts by you, or any

p. Loss of propert or that part of any loss,
the proof of which as to its existence or
amount is dependent on;
(1) Any inventory computation; or

of your parters, "employees," directors

or trustees:
\.

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Case 1:07-cv-00248-SLR
BÜSINESSOWNERS

Document 35-2

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Page 22 of 52

(2) A profit and loss computation.
q. The trnsfer of property to a person or to

a place outside the descnbed premises

is directly caused by the suspension of "operations," we wil cover such loss that affects your Business In-

on the basis of unauthorized instructions. This exclusion does not apply to loss or damage from "employee" "theft." .
. -:.:....

come during the "period of restoration."
b. Any other consequential

loss.

r. loss of "money" or "securities" caused by

C. LIMITS OF INSURANCE
1. Unless otherwise stated, the most we wil pay

or resulting from accounting or anthmetic
errors or omissions,

3. We wil not pay for loss or damage caused by
resulting from any of the following. But if loss or damage by a Covered Cause of Loss
or

for loss or damage in. anyone occurrence is the applicable Limit of Insurance shown in the

Declarations.
2. Inflation Guard

damage. . .
or damage.

results, we wil pay for that resulting loss or

a. When so .indicated in the Declarations,
the limit of Insurance for propert to

a. Weather .conditiõns, but this exclusion
only applies if weather conditions contribute in any way with a cause or event ex-

which this coverage applies wil automatically increase by the annual percentage

cluded in B.1 above to produce the loss
b. Acts or decisions, including the failure to

shown.
b. The amount of increase wil be:
(1) .The Limit of Insurance that applied on the most recent of the policy inception

act or decide, of any person, group, or-

. ganization or governmental body.
c. Faulty, inadequate or defective:

date, the policy anniversary date, or

any other policy change amending
the Limit oflnsurance, times

(1). Planning, zoning, development, surveying, sitng;

(2) The percentage of annual incr~se
shown in the Declarations, expressed
as a decimal (example:

(2) Design, specifications, workmanship, repair, construction, renovation, remodeling, grading, compaction;

8% is .08),
days since the begin-

times
(3) The number of

(3) Materials used in repair, construction, renovation or remodeling; or
(4) Maintenance;

ning of the current policy year or the
effective date of the most recent pol-

icy change amending the Building
limit! divided by 365.

of part or all of any propert on or off the
described premises.
4. Business Income and Extra Expense Ex-

Example:
If:

clusions
We wil not pay for:

The applicable Building limit is

a. Any Extra Expense, or increase of Business Income loss, caused by or resulting from:

$100,000

The annual percentage
increase is

8%

(1) Delay in rebuilding, repairing or replacing the property or resuming "operations," due to interference by strikers or other persons at the location
of the rebuilding, repair or replace-

The number of days since the beginning of the policy year (or last policy change) is The amount of increase is $100,000 x .08 x (146/365) =

146

ment; or
(2) Suspension, lapse or cancellation of any license, lease or contract. But if . the suspension, lapse or cancellation

$3,200.

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Page 23 of 52
BUSINESSOWNERS

3. Business Personal Property Limit-Seasonal Increase
( .

the loss. In this event, each part wil select a
competent and impartial apprais.er. The two

a. The Limit of Insurance for Business Personal Propert will automatically increase
by 25% to provide for seasonal variations.
b. This increase wil apply only if the Limit of

appraisers wil select an umpire. If they cannot agree, either may request that selection be made by a judge of a court having jurisdic'tion. The appraísers wil state separately the value of the propert, the amount of Net In-

Insurance shown for Business Pèrsonal

Propert in the Declarations is at least
100% of your average monthly values
durin9 the lesser of:
(1) The 12 months immediately preced-

come and operating expense or the amount of loss. If they fail to agree, they wil submit their
diferences to the umpire. A decision agreed
to by any two wil be binding. Each part wil:

ing the date the loss or damage occurs; or
(2) The period of time you have been in business at the location where the

a. Pay its chosen appraiser; and

b. Bear the other expenses of the appraisal

and umpire equally.

If there is an appraisal, we wil stil retain our
right to deny the claim.

loss or damage occurs, on the date
the loss or damage occurs.

D. DEDUCTIBLes

1. We wil not pay for loss or damage in anyone
occurrence until the amount of loss or dam-

3. Duties in the Event of loss or Damage a. You must see to it that the following are done upon the discovery of loss or damage, or a situation that may lead to loss or
damage, to Covered Propert:

age exceeds the Deductible shown in the Declarations. We wil then pay the amount of
covered lòss or damage in excess of the Deductible "up to the applicable Limit of Insur-

(1) Notify the police if a law may have
been broken. This duty does not ap-

ance.
2. No deducti~le applies to the following:
a. FireDepa.rtent Service Charge;

ply tçi loss or damage arising from
"Empioyee Dishonesty."

(2) Give us prompt notice of the loss or damage. Include a description of the
propert involved,

b. Business Income (including Extra Expense and Civil Authorit);
c. Money Orders and Counterfeit Paper Cur-

(3) As soon as possible, give us a description of how, when and where the

rency; or
d. Arson and Theft Reward.
3. If

Joss or damage occurred.

(4) Take all reasonable steps to protect
. the Covered . Propert from furter

more than one deductible applies to the same loss, the most we wil deduct from the
loss payment is the highest deductible

damage by a Covered Cause of Loss.

amount.
.E. PROPERTY LOSS CONDITIONS

If feasible, set the damaged propert aside and in. the best possible order for examination. Also keep a record of
your expenses for emergency and

temporary repairs, for consid