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T-5471 - Certificate of Insurance - 10/30/2008
,►�oRo CERTIFICATE OF LIABILITY INSURANCE OP IDM DATE MW) PARLE-1 08/21/08 PRODUCER THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE Agri-Center Insurance Agency HOLDER.THIS CERTIFICATE DOES NOT AMEND,EXTEND OR 1300 W Shaw #lA ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. Fresno CA 93711 Phone: 559-233-0123 Fax:559-266-8858 INSURERS AFFORDING COVERAGE NAIC# INSURED INSURER A: Probuilders Specialty Ins. Co. INSURER B: Paramount Home Develo Tent Inc & Copper North Proper-ties LLC INSURER C PO Box 27548 INSURER D: Fresno CA 93729-7548 - INSURER E COVERAGES THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED.NOTWITHSTANDING ANY REQUIREMENT,TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN,THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS,EXCLUSIONS AND CONDITIONS OF SUCH POLICIES.AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSPOLICY NUMBER ATE( M I EPI LIMITS LTR NSR TYPE OF INSURANCE DATE MMIODM/ DATE MM/DO/YY GENERAL LIABILITY EACH OCCURRENCE $ 1000000 MA P(tN A X X COMMERCIAL GENERALLIA131LITY NB5019807 05/21/08 05/21/09 PREMISES EaocItence) $ X CLAIMS MADE OCCURMED EXP(Any one person) $5000 X Per Claim PERSONAL&ADV INJURY $ 1000000 X $2,000.00 Dad. GENERAL AGGREGATE $2000000 GEN'L AGGREGATE LIMIT APPLIES PER: PRODUCTS-COMPIOPAGG $ 1000000 POLICYPRO- LOC JECT AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT $ ANY AUTO (Ea accident) ALL OWNED AUTOS BODILY INJURY $ SCHEDULED AUTOS (Per person) HIRED AUTOS BODILY NON-OWNED AUTOS RISK MA A • EMENT DIVISION (per accdent)RY $ Ap roved: PROPERTY DAMAGE (Per accident) $ GARAGE LIABILITY iAUTO ONLY-EA ACCIDENT $ ANY AUTO Sate OTHER THAN EA ACC $yn AUTO ONLY: AGG $ EXCESSIUMBRELLA LIABILITY EACH OCCURRENCE $ OCCUR CLAIMS MADE AGGREGATE $ $ DEDUCTIBLE $ RETENTION $ $ WORKERS COMPENSATION AND TORY LIMITS ER EMPLOYERS'LIABILITY ANY PROPRIETORIPARTNER/E.XECUTIVE E.L.EACH ACCIDENT $ OFFICER/MEMBER EXCLUDED? E.L.DISEASE-EA EMPLOYEE $ If yes,describe under SPECIAL PROVISIONS below E.L.DISEASE-POLICY LIMIT $ OTHER DESCRIPTION OF OPERATIONS/LOCATIONS 1 VEHICLES I EXCLUSIONS ADDED BY ENDORSEMENT/SPECIAL PROVISIONS The City of Fresno, its officers, officials, employees, agents and volunteers are additional insured as respects to general liability. This Insurance is Primary per GL Form (PBG 0001 01/01/2006) Additional Insured (RO101 08/01/05) (10) day notice of cancellation appplies for Non-Payment of Premium. (Tract #5471) CERTIFICATE HOLDER CANCELLATION CITYOFF SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION City of Fresno DATE THEREOF,THE ISSUING INSURER WILL ENDEAVOR TO MAIL 30 DAYS WRITTEN c/o Construction Mgt. Divisi NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT,BUT FAILURE TO DO SO SHALL Maryann Lewis IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER,ITS AGENTS OR 1721 Van Ness Ave Fresno CA 93721 REPRESENTATIVES, AUTHORIZED REPRESENTATIVE Luther Hunnicutt ACORD 25(2001108) ©ACORD CORPORATION 1988 ENDORSEMENT ENDT. NO. 7 R0101 (L.D.08/01/2005) ADDITIONAL INSURED IT IS AGREED THAT COVERAGE IS PROVIDED TO THE ADDITIONAL INSURED{S}AS FOLLOWS: 1. SECTION II OF THE POLICY (WHO IS AN INSURED) IS AMENDED TO INCLUDE ANY PERSON OR ORGANIZATION THAT THE NAMED INSURED HAS AGREED IN AN INSURED CONTRACT TO NAME AS AN ADDITIONAL INSURED PROVIDED THE BODILY INJURY OR PROPERTY DAMAGE OCCURS SUBSEQUENT TO THE EXECUTION OF THE INSURED CONTRACT AND THE BODILY INJURY OR PROPERTY DAMAGE ARISES FROM YOUR WORK PERFORMED DURING THE POLICY TERM. 2. THE APPLICABLE LIMIT OF THE COMPANY'S LIABILITY SHALL NOT BE INCREASED BY THE INCLUSION OF ANY NUMBER OF ADDITIONAL INSUREDS. g, OTHER THAN AS EXPRESSLY MODIFIED HEREIN, COVERAGE FOR THE ADDITIONAL INSURED IS GOVERNED BY THE TERMS AND CONDITIONS OF THIS POLICY, INCLUDING THE INSURING AGREEMENTS. 4. THE COVERAGE PROVIDED FOR THE ADDITIONAL INSURED IS ONLY TO THE EXTENT THE ADDITIONAL INSURED IS HELD LIABLE FOR THE NEGLIGENCE OR STRICT LIABILITY OF THE NAMED INSURED. NO COVERAGE IS PROVIDED FOR LIABILITY BASED UPON THE ACTS, ERRORS OR OMISSIONS OF THE ADDITIONAL INSURED. 5. NO COVERAGE IS PROVIDED TO AN ADDITIONAL INSURED FOR DAMAGES BECAUSE OF BODILY INJURY TO AN EMPLOYEE OF THE NAMED INSURED, WHETHER SUIT IS BROUGHT OR CLAIM IS MADE BY THE EMPLOYEE OR THE PARENT, SPOUSE, CHILD OR SIBLING OF SUCH EMPLOYEE, OR ANY ENTITY SEEKING DAMAGES BECAUSE OF INJURY TO SUCH EMPLOYEE. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED Policy Number Insured Effective NB 5019807 PARAMOUNT HOME DEVELOPMENT, INC. 05/21/2008 ProBuilders Specialty Insurance Company, RRG Countersignature of Authorized Representative A Risk Retention Group COMMERCIAL GENERAL LIABILITY COVERAGE FORM THIS POLICY IS ISSUED BY YOUR RISK RETENTION GROUP. YOUR RISK RETENTION GROUP MAY NOT BE SUBJECT TO ALL OF THE INSURANCE LAWS AND REGULATIONS OF YOUR STATE. STATE INSURANCE INSOLVENCY GUARANTY FUNDS ARE NOT AVAILABLE FOR YOUR RISK RETENTION GROUP. READ THIS POLICY CAREFULLY COVERAGE PROVIDED BY THIS POLICY MAY BE DIFFERENT FROM, AND MORE RESTRICTIVE THAN, OTHER INSURANCE POLICIES YOU HAVE PURCHASED OR ARE FAMILIAR WITH. Various provisions in this policy restrict involve repeated exposure to the same coverage. Read the entire policy carefully to generally harmful conditions, and even determine rights, duties and what is and is though the nature, type or extent of such not covered. bodily injury or property damage may be Throughout this policy the words you and your refer continuous, progressive, cumulative, to the Named Insured shown in the Declarations, and changing or evolving, and regardless of any other person or organization qualifying as a whether such bodily injury or property Named Insured under this policy. The words we, us damage is known or apparent to any person and our refer to the company providing this insur- or insured. ance. If the date when the bodily injury or The word insured means any person or organization property damage first begins cannot be qualifying as such under SECTION II - WIIO IS AN determined, then the date the property INSURED. damage or bodily injury first begins shall be Other words and phrases that appear in bold face deemed to be the earliest date on which the have special meanings as set forth in SECTION V - process, condition or circumstance which led DEFINITIONS or as elsewhere defined in this Policy. to the bodily injury or property damage began or was created. SECTION I - COVERAGES C. We shall have no obligation to indemnify any COVERAGE A. BODILY INJURY AND PROPERTY insured in connection with any suit filed DAMAGE LIABILITY before the policy period, even though the insured was not a party to such suit at the 1. INSURING AGREEMENT-INDEMNITY time it was filed. For purposes of this a. We will pay those sums that an insured provision,suit includes any actions which are becomes legally obligated to pay as damages consolidated, or actions which are re-filed because of bodily injury or property damage between some or all of the same parties, and to which this insurance applies. We may at the initial filing date of the first suit shall be our discretion investigate any occurrence used in determining whether the suit was and settle any claim or suit that may result. filed before the policy period. Our obligation to pay damages is further No other obligation or liability to pay sums or perform limited as provided in SECTION III - LIMITS acts or services is covered unless explicitly provided OF INSURANCE or in SECTION I of the policy for under SUPPLEMENTARY PAYMENTS - titled EXCLUSIONS:COVERAGES A AND B. COVERAGES A AND B. b. This insurance applies to bodily injury or 2. INSURING AGREEMENT- DEFENSE property damage only if: a. We will have the right and duty to defend (1) The bodily injury or property damage is insureds as defined in Paragraphs 1. and 2. caused by an occurrence that takes of SECTION]I-WHO IS AN INSURED against place in the coverage territory;and any suit seeking damages to which this (2) The bodily injury or property damage insurance applies. However, we shall have resulting from such occurrence first no duty or obligation to defend an insured as begins during the policy period. defined in Paragraphs 1.and 2. of SECTION]I - WHO IS AN INSURED against any suit All bodily injury or property damage arising where any other insurer is obligated to defend from an occurrence shall be deemed to first the insured, and we shall have no duty to begin at the time of the first such bodily contribute to or participate in the defense injury or property damage, even though the provided by any other such insurer. Our occurrence giving rise to such bodily injury duty to defend is further limited as provided or property damage may be continuous or PBG 0001 (01/06) 1 below or in SECTION I of the policy entitled the policy titled EXCLUSIONS: COVERAGES EXCLUSIONS: COVERAGES A AND B. A AND B. b. We have no duty or obligation to defend any b. This insurance applies to personal injury insured other than insureds as defined in Paragraphs 1. and 2. of SECTION II-WHO IS or advertising injury caused by an offense arising out of your business but AN INSURED, and in particular no duty to only if the offense was committed in the defend insureds as defined in Paragraph 3. of SECTION lI-WHO IS AN INSURED. coverage territory during the policy period. c. We will have no duty to defend an insured against any suit seeking damages for bodily c. We shall have no obligation to indemnify injury or property damage to which this you against any suit filed before the insurance does not apply. policy period, even though you were not a party to such suit at the time it was filed. d. Subject to SECTION III - LIMITS OF For purposes of this provision, suit INSURANCE, our right and duly to defend includes any actions which are end when we have used up the applicable consolidated, or actions which are re-filed limit of insurance by payment of judgments between some or all of the same parties, or settlements under Coverages A or B or and the initial filing date of the first suit Medical Expenses under Coverage C. shall be used in determining whether the e. We shall have no duty to defend any suit filed suit was filed before the policy period. before the policy period, even though the No other obligation or liability to pay sums or insured was not a party to such suit at the perform acts or services is covered unless time it was filed. For purposes of this explicitly provided for under SUPPLEMENTARY provision, suit includes any actions which are PAYMENTS-COVERAGES A AND B. consolidated, or actions which are re-filed between some or all of the same parties, and 2, INSURING AGREEMENT-DEFENSE the initial filing date of the first suit shall be used in determining whether the suit was a. We will have the right and duty to defend filed before the policy period. you against any suit seeking damages to which this insurance applies. However, f. We shall have no duty to defend any suit in we shall have no duty or obligation to which it is alleged or claimed, in whole or in defend you against any suit where any part, that any bodily injury or property other insurer is obligated to defend you, damage began before the policy term. whether as a named insured or additional g. In those cases in which we have no obligation insured, and we shall have no duty to or duty to defend we shall have the right, but contribute with or participate in the not the duty, to defend or to intervene in the defense provided by any other such defense of any suit which may involve liability insurer. Our duty to defend you is covered by this policy. further limited as provided below or in SECTION I of the policy entitled No other obligation or liability to pay sums or perform EXCLUSIONS: COVERAGES A AND B. acts or services is covered unless explicitly provided for under SUPPLEMENTARY PAYMENTS - b. We have the right but not the duty to COVERAGES A AND B. defend any insured other than you but may, at our sole election and discretion, COVERAGE B. PERSONAL INJURY AND defend an insured other than you. ADVERTISING INJURY LIABILITY c. We will have no duty to defend you 1. INSURING AGREEMENTINDEMNITY against any suit seeking damages for personal injury or advertising injury to a. We will pay those sums that an insured which this insurance does not apply. becomes legally obligated to pay as damages d. Subject to LIMITS OF INSURANCE because of personal injury or advertising (SECTION III), our right and duty to injury to which this insurance applies. We defend ends when we have used up the may at our sole discretion investigate any applicable limit of insurance by payment offense and settle any claim or suit that may of judgments or settlements under result. Our obligation to pay damages is Coverages A or B or Medical Expenses further limited as provided in SECTION III - under Coverage C. LIMITS OF INSURANCE or in SECTION I of e. We shall have no duty to defend any suit PBG 0001 (01/06) 2 filed before the policy period, even though contract is limited to your percentage of you were not a party to such suit at the negligence or fault in causing the,bodily injury or time it was filed. For purposes of this property damage according to applicable provision, suit includes any actions principles of comparative fault,and to the amount which are consolidated, or actions which of damages that results from your percentage of are re-filed between some or all of the fault, but not for the amount of any damages same parties, and the initial filing date of resulting from the fault or negligence of others. the first suit shall be used in determining Coverage is limited to your percentage of whether the suit was filed before the negligence or fault regardless of whether or not policy period_ your liability under the insured contract is so limited, and regardless of what additional liability f. We shall have no duty to defend any suit you may have agreed to assume. in which it is alleged or claimed, in whole Coverage for liability you assume in an insured or in part, that any personal injury or contract is subject to all of the other terms, advertising injury began before the conditions and exclusions of this policy. Where policy term, pursuant to an insured contract you have g. In those cases in which we have no assumed liability to another party for the cost of obligation or duty to defend we shall have that party's defense, reasonable attorneys' fees the right, but not the duty,to defend or to and litigation expenses for which you are liable to intervene in the defense of any suit which that party are deemed damages because of bodily may involve liability covered by this injury or property damage so long as those policy. attorneys'fees and litigation expenses are for the defense of that party in a suit which seeks No other obligation or liability to pay sums or damages for bodily injury or property damage perform acts or services is covered unless explicitly covered by this policy and such costs, fees and provided for under SUPPLEMENTARY PAYMENTS — expenses would otherwise be covered by this COVERAGES A AND B. policy. Payments made to you or on your behalf for such liability shall reduce the applicable limits 3. EXCLUSIONS: COVERAGES A AND B of insurance as set forth in Section Ill. Except as set forth in this exclusion, the costs incurred by This insurance does not apply to: you for the defense of another are not covered. A. EXPECTED OR INTENDED INJURY OR C. LIQUOR LIABILITY CRIMINAL ACT Bodily injury, property damage, personal Bodily injury or property damage that is: injury or advertising injury for which any (1) Expected or intended from the standpoint insured may be held liable by reason of: of any insured;or (l.) Causing or contributing to the intoxication of (2) The result of a criminal act committed by any person; any insured. (2) The furnishing of alcoholic beverages to a B. CONTRACTUAL LIABILITY person under the legal drinking age or under the influence of alcohol;or Bodily injury, property damage, personal (3) Any statute, ordinance or regulation relating injury or advertising injury for which an to the sale, gift, distribution or use of insured is obligated to pay damages by alcoholic beverages. reason of the assumption of liability in a contract or agreement. This exclusion does D. WORKERS COMPENSATION AND SIMILAR not apply to liability for bodily injury or LAWS property damage: An obligation of any insured under a workers (1) That you would have in the absence of a compensation, disability benefits or contract or agreement;or unemployment compensation law or any similar (2) You assumed in a contract or agreement law. that is an insured contract, provided the E. LIABILITY TO EMPLOYEES bodily injury or property damage occurs subsequent to the execution of the Bodily injury,personal injury or advertising insured contract and the bodily injury injury to: or property damage arises from your (1) An employee of any insured arising out of work performed during the policy period. and in the course of: Coverage for liability for bodily injury or (a) Employment by any insured;or property damage assumed in an insured PBG 0001 (01/06) 3 (b) Performing duties related to the conduct pollutants. This exclusion applies whether any of an insured's business; other cause of the bodily injury or property Whether or not any other insured may be damage would otherwise be covered under this liable for such bodily injury; insurance. Further, this exclusion applies without yn ry; or regard to the basis of the insured's liability and (2) The spouse, child, parent, brother sister to any type or form of pollutant, including both or domestic partner of that employee as a traditional environmental pollutants as well as consequence of(1)above. pollutants caused or alleged to have been caused by ordinary acts of negligence in everyday This exclusion applies: surroundings and circumstances. (1) Whether an insured may be liable as an Notwithstanding our duty to defend an insured employer or in any other capacity;and under SECTION I — COVERAGES, Paragraph 2. (2) To any obligation to share damages with INSURING AGREEMENT - DEFENSE of this or repay someone else, including another policy, where a suit is based in part upon bodily insured, who must pay damages because injury or property damage which is excluded by of the injury. this exclusion, and even though damages potentially covered by this policy are also sought, For the purpose of this exclusion the term we shall have the right, but not the obligation, to "employee" includes loaned, rented, leased or defend the suit. When we elect not to defend an temporary employees, as well as persons who insured under SECTION 1 — COVERAGES, qualify as borrowed servants or employees or Paragraph 2. INSURING AGREEMENT - persons who are or may be deemed employees DEFENSE in such suit, we shall reimburse such of any insured under the doctrines of an insured for the insured's reasonable borrowed servant, borrowed employee, attorneys' fees and litigation expenses in respondeat superior or any similar doctrine, accordance with paragraph 15 of SECTION IV - or for whom any insured may be held liable COMMERCIAL GENERAL LIABILITY as an employer. CONDITIONS. F. POLLUTION G. AIRCRAFT,AUTO OR WATERCRAFT (l) Bodily injury, property damage or Bodily injury or property damage arising out of personal injury caused by, resulting the ownership, maintenance, use or entrustment from, attributable to, contributed to, or to others of any aircraft, auto or watercraft owned aggravated by the actual, alleged or or operated by, or rented or loaned to any threatened discharge, dispersal, seepage, insured. Use includes operation and loading or migration, release or escape of unloading. pollutants, or from the presence of, or This exclusion does not apply to: exposure to, pollutants of any form whatsoever, and regardless of the cause (1) Bodily injury or property damage arising or source of the pollutants. out of the operation of any of the equipment listed in paragraph f.(2) or f.(3) of the (2) Any loss, cost or expense arising out of definition of mobile equipment (Section any: V.15). (a) Request, demand, order or statutory H. MOBILE EQUIPMENT or regulatory requirement that any insured or others test for, monitor, Bodily injury or property damage arising out of. clean up, remove, contain, treat, (1) The transportation of mobile equipment by detoxify or neutralize, or in any way an auto owned or operated by or rented or respond to, or assess the effects of loaned to any insured; or pollutants;or (2) The use of mobile equipment in, or while in (b) Claim or suit by or on behalf of a practice or preparation for, a prearranged governmental authority for damages racing, speed or demolition contest or in any because of testing for, monitoring, stunting activity;or cleaning up, removing, containing, treating, detoxifying or neutralizing, (3) Any transportation, movement, employment or in any way responding to, or or presence of mobile equipment on any assessing the effects of,pollutants. public street or highway. This exclusion applies regardless of the cause of 1. WAR OR TERRORISM the pollutants and whether any other cause of Bodily injury,property damage or personal injury the bodily injury or property damage acted arising,directly or indirectly,out of: jointly, concurrently or in any sequence with the PBG 0001 (01/06) 9 (1) War, whether or not declared, or any act or "performing operations" from the lime when you condition incident to war. War includes civil or the contractors or subcontractors begin work war, insurrection, rebellion, usurped power, until such operations are complete as set forth in revolution, or action taken by governmental paragraph 14.b. of SECTION V - DEFINITIONS - authority in hindering or defending against (Products-Completed Operations Hazard). any of these;or K. DAMAGE TO YOUR PRODUCT (2) Terrorism,including any action taken in Property damage to your product. hindering or defending against an actual or L. DAMAGE TO YOUR WORK expected incident of terrorism,regardless of Property damage to your work or any part of it any other cause or event that contributes and included in the products-completed concurrently or in any sequence to the bodily operations hazard. injury,property damage or personal injury This Exclusion does not apply if the damaged J. DAMAGE TO PROPERTY work or the work out of which the damage arises was performed on your behalf by a subcontractor. Property damage to: M. DAMAGE TO IMPAIRED PROPERTY OR (1) Property owned, rented, or occupied by an PROPERTY NOT PHYSICALLY INJURED insured, including any costs or expenses incurred by an insured, or any other person, Property damage to impaired property or organization or entity, for repair, replacement, property that has not been physically injured enhancement, restoration or maintenance of arising out of: such property for any reason, including (1) A defect, deficiency, inadequacy or dangerous prevention of injury to a person or damage to condition in your product or your work; or another's property; (2) A delay or failure by you or anyone acting on (2) Premises an insured sells, gives away or your behalf to perform a contract or abandons, if the property damage arises out agreement in accordance with its terms. of any part of those premises; This exclusion applies to property which is (3) Property, real or personal, loaned to any otherwise not physically injured or damaged but Insured; which must be demolished, removed, repaired, (4) Personal property in the care, custody or replaced, altered or damaged in order to remove, control of any insured, whether or not such repair or replace your work or your product. care, custody or control was exclusive at the N. RECALL OF PRODUCTS, WORK OR time of such property damage; IMPAIRED PROPERTY (5) Any real property on which you or any Damages claimed for any loss, cost or expense contractors or subcontractors working incurred by you or others for the loss of use, directly or indirectly on your behalf are withdrawal, recall, inspection, repair, performing operations, if the property replacement, adjustment, removal or disposal of: damage arises out of those operations except that, if you are not a general contractor or (1) Your product; developer of real property, then this exclusion (2) Your work;or applies only to the particular part of the real property on which you or others working (3) Impaired property; directly or indirectly on your behalf are If such product,work,or property is withdrawn or performing the operations;or recalled from the market or from use by any (6) Any property that must be restored, repaired person or organization because of a known or or replaced because your work was suspected defect, deficiency, inadequacy or incorrectly performed on it. dangerous condition in it. Paragraph (2) of this exclusion does not apply if O. ASBESTOS the premises are your work and were never Bodily injury or property damage arising occupied,rented or held for rental by you. out of: Paragraph (6) of this exclusion does not apply to property damage included in the products- (1) asbestos, asbestos fibers, asbestiform tale completed operations hazard. or any material and/or substances containing asbestos, asbestos fibers or For purposes of paragraph (5), you or any asbestiform. talc , or exposure to contractors or subcontractors working directly or asbestos, asbestos fibers or asbestiform indirectly on your behalf shall be deemed to be talc in any form, and/or manifestation of PBG 0001 (01/06) 5 any asbestos related "bodily injury', Q. EARTH MOVEMENT including but not limited to asbestosis mesothelioma and/or bronchogenic Bodily injury or property damage arising from, carcinoma; or aggravated by, or as a consequence of earth movement, whether or not the earth movement is (2) any alleged act, error, omission or duty combined with any other cause. As used in this involving asbestos, asbestos fibers, exclusion the term earth movement includes, but asbestiform talc or any material and/or not limited to, earthquake, landslide, substances containing asbestos, asbestos subsidence, mudflow, sinkhole, erosion, or the fibers or asbestiform talc its use, sinking, rising, shifting, expanding or contracting exposure, presence, existence, detection, of earth or soil. removal, elimination or avoidance; or This exclusion applies regardless of the cause or causes of the earth movement and includes (3) the use, exposure, presence, existence, defects or negligence in design, construction or detection, removal, elimination or materials, or any other event, conduct or avoidance of asbestos, asbestos fibers, misconduct which may have or is claimed to have asbestiform talc or any material and/or precipitated, caused or acted jointly, substances containing asbestos, asbestos concurrently, or in any sequence with earth fibers or asbestiform talc in any movement in causing the bodily injury or environment, building or structure. property damage. This exclusion further applies to bodily injury or property damage arising from This exclusion shall apply without regard to the the mitigation, repair or avoidance of earth source or sources of such asbestos, asbestos fibers or movement. asbestiform talc, or the basis of the Insured's liability. Notwithstanding our duty to defend an insured This exclusion includes defects or negligence in under SECTION I - COVERAGES, Paragraph 2. design, construction or materials, or any other event, INSURING AGREEMENT - DEFENSE of this conduct or misconduct,which may have or is claimed policy, where a suit is based in part upon bodily to have precipitated, caused or acted jointly, injury or property damage which is excluded by concurrently, or in any sequence with asbestos, this exclusion, and even though damages asbestos fibers, asbestiform talc or any material or potentially covered by this policy are also sought, substances containing asbestos, asbestos fibers or we shall have the right, but not the obligation, to asbestiform talc defend the suit. When we elect not to defend an Insured under SECTION I - COVERAGES, Paragraph 2. INSURING AGREEMENT - Notwithstanding our duty to defend an insured DEFENSE in such suit, we shall reimburse such under SECTION I - COVERAGES, Paragraph 2. an insured for the Insured's reasonable INSURING AGREEMENT - DEFENSE of this attorneys' fees and litigation expenses in policy, where a suit is based in part upon bodily accordance with paragraph 15 of SECTION IV - injury or property damage which is excluded by COMMERCIAL GENERAL LIABILITY this exclusion, and even though damages CONDITIONS. potentially covered by this policy are also sought, R. ELECTROMAGNETIC RADIATION we shall have the right, but not the obligation, to defend the suit. When we elect not to defend an Bodily injury, property damage or personal insured under SECTION I - COVERAGES, injury arising from, caused, or alleged to have Paragraph 2. INSURING AGREEMENT - been caused by, exposure to or the existence of DEFENSE in such suit, we shall reimburse such harmful levels or frequencies of electromagnetic an insured for the insured's reasonable radiation,whether such electromagnetic radiation attorneys' fees and litigation expenses in is naturally occurring or artificially created, and accordance with paragraph 15 of SECTION IV - whether such electromagnetic radiation acted or COMMERCIAL GENERAL LIABILITY is said to have acted in any sequence or CONDITIONS. combination with any other cause or causes of property damage or bodily injury. This P. PUNITIVE DAMAGES, FINES OR PENALTIES exclusion shall apply without regard to the source Claims for exemplary or punitive damages, fines or sources of such electromagnetic radiation, or or penalties based upon, arising out of, or the allegations against an insured or basis of an imposed by or under any law, statute, or insureds liability. ordinance of any federal, state or municipal Notwithstanding our duty to defend an insured government agency or any other types of lines, under SECTION I - COVERAGES, Paragraph 2. penalties, punitive damages, exemplary damages, INSURING AGREEMENT - DEFENSE of this treble damages or the multiplication of policy, where a suit is based in part upon bodily compensatory damages of any nature, injury or property damage which is excluded by PBG 0001 (01/06) 6 this exclusion, and even though damages reasonable attorneys'fees and litigation expenses potentially covered by this policy are also sought, in accordance with paragraph 15 of SECTION IV- we shall have the right, but not the obligation, to COMMERCIAL GENERAL LIABILITY defend the suit. When we elect not to defend an CONDITIONS. insured under SECTION I - COVERAGES, T. FUNGI, MOLD, ORGANIC PATHOGENS OR Paragraph 2. INSURING AGREEMENT - BACTERIA DEFENSE in such suit, we shall reimburse such an insured for the insured's reasonable Bodily injury, property damage or personal attorneys' fees and litigation expenses in injury arising,directly or indirectly,out of: accordance with paragraph 15 of SECTION IV - COMMERCIAL GENERAL LIABILITY (1) Any actual, alleged or threatened inhalation CONDITIONS. of, ingestion of, contact with, exposure to, S. EMPLOYMENT PRACTICES existence of, or presence of, any fungi, mold, organic pathogens or bacteria on or within Bodily injury,personal injury or property a building or structure, including its damage sustained by: contents, regardless of whether any other cause, event, material or product contributed (1) Any person arising out of: concurrently or in any sequence to such bodily injury or property damage. (a) Refusal to employ that person; (2) Any loss, cost or expenses arising out of the abating, testing for, monitoring, cleaning up, (b) Termination of that person's employment; removing, preventing, containing, treating, or detoxifying, neutralizing, remediating or disposing of, or in any way responding to, or (c) Employment-related practices, policies, assessing the effects of, fungi, mold, organic acts or omissions including, but not pathogens or bacteria, by any insured or by limited to, coercion, evaluation, any other person or entity. reassignment, demotion, discipline, defamation, harassment, humiliation or This exclusion applies regardless of the origin or discrimination directed at that person. cause of the fungi, mold, organic pathogens or bacteria, and whether any other cause of said (2) The spouse, domestic partner, child, parent, bodily injury or property damage acted jointly, brother or sister of that person as a concurrently or in any sequence with said fungi, consequence of"bodily injury" to that person molds,organic pathogen or bacteria. at whom any of the employment-related Notwithstanding our duty to defend an insured practices described in paragraphs (1) (a), (b) under SECTION I - COVERAGES, Paragraph 2. or(c)above is directed. INSURING AGREEMENT - DEFENSE of this policy, where a suit is based in part upon bodily This exclusion applies: injury or property damage which is excluded by this exclusion, and even though damages (1) Whether the Insured may be liable as an potentially covered by this policy are also sought, employer or in any other capacity;and we shall have the right, but not the obligation, to defend the suit. When we elect not to defend an (2) To any obligation to share damages with or insured under SECTION I - COVERAGES, repay someone else who must pay damages Paragraph 2. INSURING AGREEMENT - because of the `bodily injury" or "property DEFENSE in such suit, we shall reimburse such damage". an insured for the insured's reasonable attorneys' fees and litigation expenses in accordance with paragraph 15 of SECTION IV - Notwithstanding our duty to defend an insured COMMERCIAL GENERAL LIABILITY under SECTION I - COVERAGES, Paragraph 2. CONDITIONS. INSURING AGREEMENT - DEFENSE of this U. CERTAIN CONSTRUCTION PROJECTS NOT policy, where a suit is based in part upon bodily injury, personal injury or property damage COVERED which is excluded by this exclusion, and even Property damage arising from your work that is though damages potentially covered by this policy performed on or in connection with, or your are also sought, we shall have the right, but not product that is incorporated into or upon, any the obligation, to defend the suit. When we elect construction project where any claim of not to defend an insured under SECTION I - property damage caused,or alleged to have been COVERAGES, Paragraph 2. INSURING caused, by your work or your product, or of any AGREEMENT - DEFENSE in such suit, we shall defect, inadequacy or deficiency in your work or reimburse such an insured for the insured's PBG 0001 (01/06) 7 your product, was made prior to the policy This exclusion shall apply without regard to the period. This exclusion applies regardless of source or sources of such lead, or the basis of the whether different property damage caused, or insured's liability.This exclusion includes defects alleged to have been caused by your work or or negligence in design, construction or materials, your product, or different allegations of defects, or any other event, conduct or misconduct, which inadequacies or deficiencies in your work or your may have or is claimed to have precipitated, product are made during or after the policy caused or acted jointly, concurrently, or in any period. sequence with lead in causing the bodily injury or property damage. V. PAST WORK OR CONSTRUCTION PROJECTS Notwithstanding our duty to defend an insured under SECTION I - COVERAGES, Paragraph 2. Property damage included within the products- INSURING AGREEMENT - DEFENSE of this complete operations hazard which arises out of policy, where a suit is based in part upon bodily your work or your product that was performed injury or property damage which is excluded by on or in connection with, or was incorporated into this exclusion, and even though damages or upon, any improvement to real property or any potentially covered by this policy are also sought, construction project, together with any we shall have the right, but not the obligation, to associated common areas, before the inception defend the suit. When we elect not to defend an date of this policy or, if this policy is a renewal Insured under SECTION I - COVERAGES, policy, the inception date of the first policy of Paragraph 2. INSURING AGREEMENT - continuous coverage provided by us. This DEFENSE in such suit, we shall reimburse such exclusion does not apply if the construction an insured for the insured's reasonable project is specifically endorsed on this Policy and attorneys' fees and litigation expenses in a premium is charged for it. accordance with paragraph 15 of SECTION IV - W. LEAD COMMERCIAL GENERAL LIABILITY CONDITIONS. Bodily injury, property damage or personal X. CONDOMINIUM OR TOWNHOUSE LIABILITY injury arising, directly or indirectly,out of: (1) The actual, alleged or threatened inhalation Property damage or bodily injury within the products-completed operations hazard arising of, ingestion of, contact with, exposure to, efrom, related to or in any way connected with a existence of, or presence of, lead whether the condominium or townhouse project including lead is in pure form or is or was combined both the habitational structures and units with any other chemical or material, d ptogether with any associated common areas. products or materials containing lead, and regardless of whether any other cause, event, This exclusion applies to property damage or material or product contributed concurrently bodily injury arising out of, related to or or in any sequence to any bodily Injury or connected with any apartment project or property damage; structure that is converted into a condominium or (2) Any injury or damage caused or alleged to townhouse regardless of whether the conversion have been caused by the removal, of the apartment project occurred before, during eradication, detoxification, remediation or or after the period of this policy. decontamination of lead or property This exclusion applies to a project or development containing lead; of condominiums or townhouses,or an apartment (3) Any loss, cost or expenses arising out of the project or structure converted into condominiums abating, testing for, monitoring, cleaning up, or townhouses, even if some or all of the units are removing, containing, treating, detoxifying, held for rental or lease. neutralizing, remediating or disposing of, or Y. PROFESSIONAL LIABILITY in any way responding to, or assessing the effects of,lead by any insured or by any other Bodily injury, property damage, personal person or entity; injury or advertising Injury arising out of the rendering of or failure to render any professional (4) Any warnings, supervision, instructions, services, recommendations, or advice given or which should have been given in connection with Notwithstanding our duty to defend an insured (1), (2) or (3) above; or under SECTION I - COVERAGES, Paragraph 2. INSURING AGREEMENT - DEFENSE of this (5) Any obligation to share damages with or policy, where a suit is based in part upon bodily repay someone else who must pay damages injury or property damage which is excluded by because of lead or products or materials this exclusion, and even though damages containing lead. potentially covered by this policy are also sought, we shall have the right, but not the obligation, to PBG 0001 (01/06) 6 defend the suit. When we elect not to defend an we shall have the right, but not the obligation, to insured under SECTION I — COVERAGES, defend the suit. When we elect not to defend an Paragraph 2. INSURING AGREEMENT - insured under SECTION I — COVERAGES, DEFENSE in such suit, we shall reimburse such Paragraph 2. INSURING AGREEMENT - an insured for the insured's reasonable DEFENSE in such suit, we shall reimburse such attorneys' fees and litigation expenses in an insured for the Insured's reasonable accordance with paragraph 15 of SECTION IV - attorneys' fees and litigation expenses in COMMERCIAL GENERAL LIABILITY accordance with paragraph 15 of SECTION IV - CONDITIONS. COMMERCIAL GENERAL LIABILITY Z. FINANCIAL SERVICES CONDITIONS. Bodily injury, property damage, personal AA.BLASTING OPERATIONS injury or advertising injury arising out of the Bodily injury or property damage arising rendering of or failure to render financial services directly or indirectly out of blasting or explosion to others by any insured. Financial services operations. include but are not limited to the following: BB.EXTERIOR INSULATION AND FINISH (1) Planning,administering or advising on: SYSTEMS (a) Any investment, pension, annuity, Bodily injury or property damage arising savings, checking or retirement plan, directly or indirectly,out of: fund or account; (1) The design, manufacture, construction, (b) The issuance or withdrawal of any bond, fabrication, preparation, installation, debenture, stock or other securities; application, maintenance or repair, including (c) The trading of securities, futures, remodeling, service, correction, or replacement, commodities,or currencies; of an exterior insulation and finish system (2) Acting as a dividend disbursing agent, (EIFS) commonly referred to as synthetic stucco exchange agent, redemption or subscription or any part thereof, or any substantially similar agent, warrant or script agent, fiscal or system or any part thereof, including the paying agent, tax withholding agent, escrow application or use of conditioners, primers, agent, clearing agent, or electronic funds accessories, flashings, coatings, caulking or transfer agent; sealants in connection with such system;or (3) Lending or arranging for the lending of (2) Any work or operations with respect to any money, including credit card, debit card, exterior component, fixture or feature of any leasing or mortgage operations or activities, including securing financing, refinancing, or structure if an exterior insulation and finish interbank transfers; system is used in any part of that structure. (4) Repossessing of real or personal property or CC.CONCRETE SULFATES acting as an assignee for the benefit of Property damage arising, directly or indirectly, creditors; out of: (5) Checking, evaluating or reporting of credit; (1) The actual, alleged or threatened exposure of (6) Maintaining of financial accounts or records; concrete to, or the absorption by concrete products of,sulfates whether such sulfates are (7) Compliance with local, State or Federal tax in pure form or are or were combined with any laws including but not limited to tax other chemical or material; planning, tax advising or the preparation of (2) Any loss, cost or expenses arising out of the tax returns;or abating, testing for, monitoring, cleaning up, (8) Selling or issuing travelers checks, letters of removing, containing, treating, neutralizing, credit,certified checks,cashier checks,bank remediating or disposing of concrete that is checks,money orders or advances on payroll exposed to or has absorbed sulfates; checks. (3) Any loss, cost or expenses arising out of the Notwithstanding our duty to defend an insured abating, testing for, monitoring, cleaning up, under SECTION I — COVERAGES, Paragraph 2. removing, containing, treating, neutralizing, INSURING AGREEMENT - DEFENSE of this remediating or disposing of, or in any way policy, where a suit is based in part upon bodily responding to, or assessing the effects of injury or property damage which is excluded by sulfates on concrete; this exclusion, and even though damages (4) Any supervision, instructions, warnings, potentially covered by this policy are also sought, recommendations, or advice given or which PBG 0001 (01/06) 9 should have been given in connection with should have been given in connection with (1), (2) or(3) above; or (1), (2) or(3) above;or (5) Any obligation to share damages with or (5) Any obligation to share damages with or repay someone else who must pay damages repay someone else who must pay damages because of sulfates or products or materials because of CCA or products or materials containing sulfates. containing CCA. This exclusion shall apply without regard to the This exclusion shall apply without regard to the source or sources of the sulfates, or the basis of source or sources of the CCA, or the basis of the the insured's liability. This exclusion includes insured's liability. This exclusion includes defects or negligence in design, construction or defects or negligence in design, construction or materials, or any other event, conduct or materials, or any other event, conduct or misconduct, which may have or is claimed to misconduct, which may have or is claimed to have precipitated, caused or acted jointly, have precipitated, caused or acted jointly, concurrently, or in any sequence with sulfates in concurrently, or in any sequence with CCA in causing the property damage. causing the bodily injury or property damage. Notwithstanding our duty to defend an insured Notwithstanding our duty to defend an insured under SECTION I — COVERAGES, Paragraph 2. under SECTION I — COVERAGES, Paragraph 2. INSURING AGREEMENT - DEFENSE of this INSURING AGREEMENT - DEFENSE of this policy, where a suit is based in part upon policy, where a suit is based in part upon bodily property damage which is excluded by this Injury or property damage which is excluded by exclusion, and even though property damage this exclusion, and even though damages potentially covered by this policy is also sought, potentially covered by this policy are also sought, we shall have the right, but not the obligation, to we shall have the right, but not the obligation, to defend the suit. When we elect not to defend an defend the suit. When we elect not to defend an insured under SECTION I — COVERAGES, insured under SECTION I — COVERAGES, Paragraph 2. INSURING AGREEMENT - Paragraph 2. INSURING AGREEMENT - DEFENSE in such suit, we shall reimburse such DEFENSE in such suit, we shall reimburse such an insured for the insured's reasonable an insured for the insured's reasonable attorneys' fees and litigation expenses in attorneys' fees and litigation expenses in accordance with paragraph 15 of SECTION IV - accordance with paragraph 15 of SECTION IV - COMMERCIAL GENERAL LIABILITY COMMERCIAL GENERAL LIABILITY CONDITIONS. CONDITIONS. DD.CHROMATED COPPER ARSENATE ("CCA") EE.PLAYGROUNDS Bodily injury, personal injury or property Property damage or bodily injury arising damage arising, directly or indirectly,out of: directly or indirectly, out of your work that is (1) The actual, alleged or threatened inhalation performed on or in connection with, or your of, ingestion of, contact with, exposure to, product that is incorporated into or connected in existence of, or presence of, CCA whether the any way with, any playground. CCA is in pure form or is or was combined FF.HEAT APPLICATION AND PROCESSES with any other chemical or material, or products or materials containing CCA, and Property damage or bodily injury that occurs regardless of whether any other cause, event, during the course of an insureds operations that material or product contributed concurrently directly or indirectly arises out of, is caused, or or in any sequence to any bodily injury or alleged to have been caused by, or is in any way property damage; connected with hot tar applications of any nature or kind, or processes or practices employed in (2) Any bodily injury or property damage roofing work and commonly known in the roofing caused or alleged to have been caused by the industry as torch down and/or torch on. removal, eradication, detoxification, GG.COURSE OF ROOFING OPERATIONS remediation or decontamination of CCA or property containing CCA; Property damage not included within the (3) Any loss, cost or expenses arising out of the products-completed operations hazard to any abating, testing for, monitoring, cleaning up, building or structure and/or the contents, removing, containing, treating, detoxifying, furniture and fixtures, improvements and neutralizing, remediating or disposing of, or betterments of any building or structure, directly in any way responding to, or assessing the or indirectly arising out of or caused, or alleged to effects of CCA; have been caused by, in whole or in part, wind, hail, snow, rain, ice or any combination of these (4) Any supervision, instructions, warnings, or any other form of precipitation occurring while recommendations, or advice given or which the roof or other covering of the building or other PBG 0001 (01/06) 10 structure is being constructed, repaired or investigation, supervision, placement, training, replaced. reporting to the proper authorities, or failure to so Notwithstanding SECTION V — DEFINITIONS, report, or retention of a person for whom any Paragraph 19. Products-Completed Operations insured is or ever was legally responsible. Hazard, work on a roof or other covering of a For the purpose of this endorsement, the terms building or structure shall be deemed complete assault and battery include any harmful or only when all work or operations upon it has been offensive contact between or among two or more finished, regardless of whether the scope of an persons; an apprehension of harmful or offensive Insured's work or operations includes less than contact between or among two or more persons the full completion of the roof or other covering and threats by word or deeds. and only when the roof or other structure is Notwithstanding our duty to defend an insured completely finished from the standpoint of all under SECTION I - COVERAGES, Paragraph 2. persons or entities involved. INSURING AGREEMENT - DEFENSE of this HH.CONSOLIDATED (WRAP-UP OR OWNER policy, where a suit is based in part upon bodily CONTROLLED) INSURANCE PROGRAM injury, personal injury or property damage which is excluded by this exclusion, and even Bodily injury or property damage arising out of though damages potentially covered by this policy or connected with your work, including bodily are also sought, we shall have the right, but not injury or property damage within the products- the obligation, to defend the suit. When we elect completed operations hazard, on a not to defend an insured under SECTION I - construction project or at a location where a COVERAGES, Paragraph 2. INSURING consolidated (Wrap-Up or Owner Controlled) AGREEMENT - DEFENSE in such suit, we shall insurance program has been provided by the reimburse such an insured for the insured's prime contractor/project manager or owner of the reasonable attorneys' fees and litigation expenses construction project in which you are involved, in accordance with paragraph 15 of SECTION IV- This exclusion applies whether or not COMMERCIAL GENERAL LIABILITY the consolidated (Wrap-Up or Owner CONDITIONS. Controlled)insurance program: KK.ABUSE OR MOLESTATION (1) Provides coverage identical to that Bodily injury, personal injury or property provided by this Coverage Part; damage arising, directly or indirectly, out of (2) Has limits adequate to cover all actual, alleged or threatened sexual molestation, claims; corporal punishment or physical or mental abuse. (3) Remains in effect; This exclusion includes sexual molestation, corporal punishment or physical or mental abuse (4) Applies to the bodily injury or directly or indirectly arising out of or related to the property damage;or actual or alleged negligent employment, investigation, supervision, placement, training, (5) Has you as its prime contractor, reporting to the proper authorities, or failure to so project manager, owner or principal report, or retention of a person for whom any insured. insured is or ever was legally responsible. II. BREACH OF CONTRACT Notwithstanding our duty to defend an insured Bodily injury, property damage, personal under SECTION I - COVERAGES, Paragraph 2. injury or advertising injury arising, directly or INSURING AGREEMENT - DEFENSE of this indirectly, out of the actual or alleged breach of policy, where a suit is based in part upon bodily any contract or agreement. injury, personal injury or property damage which is excluded by this exclusion, and even JJ. ASSAULT AND BATTERY though damages potentially covered by this policy Bodily injury, personal injury or property are also sought, we shall have the right, but not damage that arises, directly or indirectly, out of the obligation, to defend the suit. When we elect an actual or alleged assault and/or battery, or not to defend an insured under SECTION I - out of any actual or alleged act or failure to act to COVERAGES, Paragraph 2. INSURING prevent or suppress an assault and/or battery, AGREEMENT - DEFENSE in such suit, we shall whether caused or committed by any insured, an reimburse such an insured for the insured's employee or agent of an insured, a patron or any reasonable attorneys' fees and litigation expenses other person. in accordance with paragraph 15 of SECTION IV- COMMERCIAL GENERAL LIABILITY This exclusion includes assault and/or battery CONDITIONS. directly or indirectly arising out of or related to the actual or alleged negligent employment, PBG 0001 (01/06) 11 LL. SILICA COMMERCIAL GENERAL LIABILITY Bodily injury, property damage or personal CONDITIONS. injury arising, directly or indirectly,out of: MM. NUCLEAR ENERGY (1) The actual, alleged or threatened inhalation of, ingestion of, contact with, exposure to, Bodily injury or property damage: existence of, or presence of, silica whether the (1) Arising from, aggravated by, or as a silica is in pure form or is or was combined consequence of the hazardous properties of with any other chemical or material, or nuclear material, whether any other cause products or materials containing silica, and or causes acted jointly,concurrently or in any regardless of whether any other cause, event, sequence to result in such bodily injury or material or product contributed concurrently property damage and without regard to or in any sequence to any bodily injury or whether any other such cause or causes of property damage; the bodily injury or property damage would (2) Any bodily injury or property damage be covered under this policy caused or alleged to have been caused by the The following definitions apply only to this removal, eradication, detoxification, exclusion: remediation or decontamination of silica or property containing silica; (1) Hazardous properties include radioactive, toxic or explosive properties. (3) Any toss, cost or expenses arising out of the abating, testing for, monitoring, cleaning up, (2) Nuclear material means source material, removing, containing, treating, detoxcifying, special nuclear material or by-product neutralizing, remediating or disposing of, or material. in any way responding to, or assessing the (3) Source material, special nuclear material, effects of silica by any insured or by any and by-product material have the meanings other person or entity; given them in the Atomic Energy Act of 1954 (4) Any supervision, warnings, or in any law amendatory thereof. recommendations, instructions, or advice For purposes of this exclusion, property damage given or which should have been given in includes all forms of radioactive contamination of connection with(1), (2) or(3) above;or property. This exclusion includes any bodily (5) Any obligation to share damages with or injury or property damage caused or alleged to repay someone else who must pay damages have been caused by the removal, eradication, because of silica or products or materials detoxification, remediation or decontamination of containing silica. nuclear material or property containing nuclear This exclusion shall apply without regard to the material, and further includes any liability, cost or expense to remediate or prevent property source or sources of such silica, or the basis of damage or bodily injury from nuclear material. the Insured's liability. This exclusion includes defects or negligence in design, construction or Notwithstanding our duty to defend an insured materials, or any other event, conduct or under SECTION I - COVERAGES, Paragraph 2. misconduct, which may have or is claimed to INSURING AGREEMENT - DEFENSE of this have precipitated, caused or acted jointly, policy, where a suit is based in part upon bodily concurrently, or in any sequence with silica in injury or property damage which is excluded by causing the bodily injury or property damage. this exclusion, and even though damages potentially covered by this policy are also sought, Notwithstanding our duty to defend an insured we shall have the right,but not the obligation, to under SECTION I - COVERAGES, Paragraph 2. INSURING AGREEMENT - DEFENSE of this policy, where a suit is based in part upon bodily injury or property damage which is excluded by this exclusion, and even though damages potentially covered by this policy are also sought, we shall have the right, but not the obligation, to defend the suit. When we elect not to defend an insured under SECTION I - COVERAGES, Paragraph 2. INSURING AGREEMENT - DEFENSE in such suit, we shall reimburse such an insured for the Insured's reasonable attorneys' fees and litigation expenses in accordance with paragraph 15 of SECTION IV - PBG 0001 (01/06) 12 defend the suit. When we elect not to defend an (3) Arising out of oral or written publication of insured under SEC'I'lON I - COVERAGES, the same or similar material whose first Paragraph 2. INSURING AGREEMENT - publication took place before the policy DEFENSE in such suit, we shall reimburse such period. an insured for the insured's reasonable (4) Arising out of the violation of a penal statute attorneys' fees and litigation expenses in or ordinance committed by or with the accordance with paragraph 15 of SECTION IV - consent of any insured. COMMERCIAL GENERAL LIABILITY CONDITIONS. (5) Arising out of an electronic chatroom or NN. AIRCRAFT PRODUCTS bulletin board any insured hosts, owns, or over which any insured exercises control. Bodily injury or property damage included (6) An offense committed by any insured whose within the products-completed operations business is: hazard relating to aircraft, including missiles or spacecraft, any ground support or control (a) Advertising, broadcasting, publishing or equipment and any article installed in aircraft, or telecasting; used in connection with aircraft, or for spare (b) Designing or determining content of web- parts for aircraft, or tooling used for the sites for others;or manufacture thereof, including ground handling tools and equipment, training aids, instruction (c) An internet search, access, content or manuals, blueprints, engineering or other data, service provider. advice and services and labor relating to such QQ.ADVERTISING INJURY EXCLUSION aircraft or articles, or to any liability arising out of the grounding of any aircraft. Advertising injury arising out of: For the purpose of this exclusion grounding (1) The misappropriation of advertising ideas or means the withdrawal of one or more aircraft style of doing business. from flight operations or the imposition of speed, (2) The wrong description of the price of goods, passenger or load restrictions on such aircraft, by products or services stated in an reason of the existence of or alleged or suspected advertisement. existence of any defect,fault, or condition in such aircraft or any part thereof sold, handled or (3) The infringement of title, patent, copyright, distributed by any insured, or manufactured, trademark, trade dress, , slogan, trade secret assembled or processed by any other person or or other intellectual property rights. organization according to specifications, plans, (4) The oral or written publication of material suggestions, orders or drawings of any insured, that disparages, but does not actually libel or or with tools, machinery or other equipment slander, a person's or organization's goods, furnished to such persons or organizations by products or services. any insured, whether such aircraft so withdrawn are owned or operated by the same or different (5) The failure of goods, products or services to persons or organizations. conform with a statement of quality or OO.CROSS LIABILITY performance made in an advertisement. Exclusions C. through N. do not apply to damage by Bodily injury, property damage,personal injury fire to premises while rented to you or temporarily or advertising injury for any claims made occupied b you with p y y permission of the owner. A or suits brought by any insured against any other separate limit of insurance applies to this coverage as Insured, except this exclusion does not apply to described in SECTION III-LIMITS OF INSURANCE. claims or suits brought against you by an Insured as defined in paragraph 3. of Section II- Who Is An Insured. COVERAGE C. MEDICAL PAYMENTS PP. PERSONAL INJURY AND ADVERTISING 1. INSURING AGREEMENT INJURY EXCLUSION a. We will pay medical expenses as described Personal injury or advertising injury: below for bodily injury caused by an accident: (1) Caused by or at the direction of any insured with the knowledge that the act would violate (1) On premises you own or rent; or the rights of another and would inflict (2) personal injury or advertising injury. r n ways next to premises you own or rent;provided that: (2) Arising out of oral or written publication of material, if done by or at the direction of any insured with knowledge of its falsity, PBG 0001 (01/06) 13 (i) The accident takes place in the Liability Coverage applies. We do not have to coverage territory, during the policy furnish these bonds or provide security or period; collateral for them. 3. The cost of bonds to release attachments or to stay (ii) The expenses are incurred and a judgment on appeal, but only for bond amounts reported to us witlun the policy within the application limit of insurance. We do period; and not have to furnish these bonds nor provide (iii) The injured person submits to collateral for them. examination, at our expense, by 4. All reasonable expenses you incur at our request physicians of our choice as often as to assist us in the investigation or defense of the we reasonably require. claim or suit, including actual loss of earnings up to$250 a day because of time off from work. b. We will make these payments regardless of 5. Costs awarded against you in a suit for damages fault. These payments will not exceed the but only if awarded on a cause or causes of action applicable limit of insurance. We will pay covered by this insurance. However, we will not reasonable expenses for: pay costs which are awarded for attorney fees by (1) First aid at the time of an accident; reason of statute, court rule, regulation or a contractual obligation (except as set forth in (2) Necessary medical, surgical, x-ray and paragraph B of EXCLUSIONS: COVERAGES A dental services, including prosthetic AND B. devices;and 6. Prejudgment interest awarded against you on that (3) Necessary ambulance, hospital, part of the judgment we pay. If we make a professional nursing and funeral services, settlement offer that is not exceeded by the 2. EXCLUSIONS judgment, we will not pay any prejudgment interest based on that period of time after the We will not pay expenses for bodily injury: offer. a. To any insured. 7. All interest on the full amount of any judgment that accrues after entry of the judgment and b. To a person hired to do work for or on behalf before we have paid,offered to pay,or deposited in of any insured or a tenant of any insured. court that part of the judgment that is within the c. To a person injured on that part of premises coverage of this policy and the applicable limit of any insured owns or rents that the person insurance. normally occupies. These payments will not reduce the limits of d. To a person, whether or not an employee of insurance. any insured, if benefits for the bodily injury SECTION II -WHO IS AN INSURED are payable or must be provided under a workers compensation or disability benefits 1. If you are designated in the declarations as: law or a similar law. a. An individual, you and your spouse are e. To a person injured while taking part in insureds, but only with respect to the athletics. conduct of a business of which you are the sole owner for those operations as disclosed f. Excluded under Coverage A. in the question in the application for this g. Included within the products-completed policy titled "Description of Your Operations." operations hazard. b. A partnership or joint venture, you are an h. Due to war, whether or not declared, or any insured. Your members, your partners, and act or condition incident to war. War includes their spouses are also insureds, but only with civil war, insurrection, act of terrorism, respect to the conduct of your business. rebellion or revolution. c. A Limited Liability Company, you are an SUPPLEMENTARY PAYMENTS - COVERAGES A insured. Your members are also insureds, but only with respect to the conduct of your AND B business. Your managers are insureds, but We will pay,with respect to any claim, or any suit we only with respect to their duties as your defend: managers. 1. All expenses we incur. d. An organization other than a partnership, joint venture, or Limited Liability Company, 2. Up to $250 for cost of bail bonds required because you are an insured. Your executive officers of accidents or traffic law violations arising out of and directors are insureds, but only with the use of any vehicle to which the Bodily Injury PBG 0001 (01/06) 14 respect to their duties as your executive b. Any person(other than your employee) or any officers or directors. Your stockholders are organization while acting as your real estate also insureds, but only with respect to their manager. liability as stockholders. c. Any person or organization having proper 2. Each of the following is also an insured: temporary custody of your property if you die, but only: a. Your direct employees are insureds but only for acts within the scope of their employment (1) With respect to liability arising out of the by you. Your direct employees do not include maintenance or use of that property; and loaned, rented, leased or temporary (2) Until your legal representative has been employees, persons who qualify as borrowed appointed. servants or employees, your executive officers (if you are an organization other d. Your legal representative if you die, but only than a partnership or joint venture), or your with respect to duties as such. That managers (if you are a limited liability representative will have all your rights and company). However, no direct employee is an duties. insured for: 3. Any other person or entity qualifying as an (1) Bodily injury, personal , injury or additional insured under a Blanket Additional advertising injury Insured Endorsement or added by an (a) To you, to your officers, directors or endorsement issued by us to this policy as an stockholders, to your partners, to additional insured is an insured hereunder, but your members or managers (if you only to the extent and with the limitations set are a partnership, joint venture or forth in the endorsement. limited liability company), or to a co- No person or entity is an insured by virtue of the employee including loaned, rented, acquisition of all or any part of the assets of an leased or temporary employees who insured and no person or organization is an insured qualify as borrowed servants or with respect to the conduct of any current or past employees while that employee is partnership, joint venture, limited liability company either in the course of his or her or any other entity that is not shown as a Named employment or performing duties Insured in the declarations. related to the conduct of your SECTION III -LIMITS OF INSURANCE business; (b) To the spouse, domestic partner, 1. The Limits of Insurance shown in the child, parent, brother or sister of Declarations and the rules below fix the most we anyone included in Paragraph (1) (a) will pay regardless of the number of: above; a. Insureds; (c) For which there is any obligation to b. Claims made or suits brought;or share damages with or to repay someone else who must pay damages c. Persons or organizations making claims or because of the injury described in bringing suits. Paragraphs(1) (a)or(b)above; or 2. The General Aggregate Limit is the most we will (d) Arising out of his or her providing or pay for the sum of: failing to provide professional health a. Medical expenses under coverage C; care services. (2) Property damage to property: b. Damages under Coverage A, except damages a) Owned, occupied or used by; or because of bodily injury or property damage ( included in the products-completed (b) Rented to, in the care, custody or operations hazard;and control of, or over which physical control is being exercised for any c. Damages under Coverage B. purpose, and even if the control is non-exclusive,by; 3. The Products-Completed Operations Aggregate Limit is the most we will pay under Coverage A You, any of your employees, any partner for damages because of bodily injury and or member (if you are a partnership or property damage included in the products- joint venture), or any manager or member completed operations hazard. (if you are a limited liability company). 4. Subject to 2. above, the Personal and Advertising Injury Limit is the most we will pay under Coverage B for the sum of all damages PBG 0001 (01/06) 15 because of all personal injury and all 2. CANCELLATION advertising injury sustained by any one person or organization. a. The first Named Insured shown in the 5. Subject to 2. or 3. above, whichever applies, the Declarations may cancel this policy by Each Occurrence limit is the most we will pay for mailing or delivering to us advance written the sum of: notice of cancellation. a. Damages under COVERAGE A; and b. We may cancel this policy by mailing or delivering to the first Named Insured written b. Medical expenses under COVERAGE C notice of cancellation in accordance with the because of all bodily injury and property laws of the District of Columbia. damage arising out of any one occurrence. c. We will mail or deliver our notice to the first 6. Subject to 5. above, the Damage to Premises Named Insured's address shown in the Rented to You Limit is the most we will pay declarations. under COVERAGE A for damages because of d. Notice of cancellation will state the effective property damage to premises rented to you, or date of cancellation.The policy period will end temporarily occupied by you with the permission on that date. of the owner, arising out of any one fire. e. If this policy is cancelled, we will send the 7. Subject to 5. above, the Medical Expense Limit is first Named Insured any premium refund due the most we will pay under COVERAGE C for alt as follows: medical expenses because of bodily injury sustained by one person. (1) If we cancel, the refund will be pro rata; or 8. For purposes of,paragraph 5., above, all bodily Injury and property damage caused or alleged to (2) If the first Named Insured cancels, the have been caused by your work that is performed refund may be less than pro rata and will on or in connection with, or your product that is be computed by the Company's incorporated into, any construction project, customary short-rate procedure. real property improvements, buildings or There will be no flat cancellations by or on developments shall be deemed to have been behalf of any insured. caused by a single occurrence. 9. If a single occurrence as defined in the policy or The cancellation will be effective even if we as modified for purposes of the application of this have not made or offered a refund. section in Paragraph 8., above, causes bodily Notwithstanding the foregoing, if we have injury or property damage in more than one elected to audit the policy rate basis under policy period,we shall only be liable for a pro-rata the provisions of SECTION IV. paragraph 4. - share of the highest per occurrence limit EXAMINATION OF YOUR BOOKS AND purchased by an insured for any single policy RECORDS, the first Named Insured agrees to year, even if purchased from another insurer. In pay the higher of: calculating our pro rata share, only one policy (11 Earned premium as computed by such issued by us may be utilized. audit; or If the policy period is extended after issuance for an (2) The earned premium as computed by additional period of less than 12 months the such customary short-rate procedure of additional period will be deemed part of the last the minimum and deposit premium if the preceding period for purposes of determining the first Named Insured cancels, or as Limits of Insurance as shown in the Declarations. computed pro rata if we cancel. SECTION IV - COMMERCIAL GENERAL f. If notice is mailed, proof of mailing will be LIABILITY CONDITIONS sufficient proof of notice. We have no duty to provide coverage or defense under 3. CHANGES this insurance unless you and any other involved This policy contains all the agreements between Insured have, as conditions precedent to our duty to you and us concerning the insurance afforded. defend or indemnify, fully complied with the The first Named Insured shown in the conditions contained in this policy. Declarations is authorized to make changes in the 1. BANKRUPTCY policy's of this policy with our written consent.This policy's terms can be amended or waived only by Bankruptcy or insolvency of the insured or of the written endorsement issued by us and made a insured's estate will not relieve us of our part of this policy. obligations under this policy. PBG 0001 (01/06) 16 4. EXAMINATION OF YOUR BOOKS AND (3) The requirement to notify us applies RECORDS without regard to whether an insured We may examine and audit your books and believes, reasonably or otherwise, that records as they relate to this policy at any time the claim or suit is not covered by this during the policy period and up to three years Policy;and afterward. (4) Failure to provide the notice required S. INSPECTIONS AND SURVEYS above within the time specified shall be presumed to prejudice us. We have the right but are not obligated to: c. You and any other involved insured must: a. Make inspections and surveys at any time; (l) Immediately send us copies of any b. Give you reports on the conditions we find; demands, notices, or legal papers and received in connection with the claim or c. Recommend changes. suit; Any inspections, surveys, reports or (2) Authorize us to obtain records and other recommendations relate only to insurability and information; the premiums to be charged. We do not make (3) Cooperate with us in the investigation, safety inspections. We do not undertake to settlement or defense of the claim or perform the duty of any person or organization to suit;and provide for the health or safety of workers or the public. We do not warrant that conditions: (4) Assist us, upon our request, in the enforcement of any right against any a. Are safe or healthful;or person or organization which may be b. Comply with laws, regulations, codes or liable to the insured because of bodily standards. injury, property damage, personal injury or advertising injury to which this insurance may also apply. d. Irrespective of reasons, excuse, justification, 6. INSURED'S DUTIES IN THE EVENT OF AN or prejudice to us: OCCURRENCE, OFFENSE,CLAIM OR SUIT. (1) No insured, and no one acting on behalf a. You,or any other involved insured,must see of an insured, except at their own to it that we are notified as soon as possible expense and cost, shall voluntarily make of an occurrence which may result in a a payment, assume any obligation, or claim, whether or not covered by this Policy, incur any expense including defense but notification to us must be made within expenses, other than for first aid,without thirty (30) days from your, or any other our consent, and we shall have no involved insured's, first notice of an obligation to reimburse any payments or occurrence. To the extent possible, notice expenses incurred without our consent. should include: (2) We shall have no liability for any default (1) How, when and where the occurrence judgment entered against any insured. took place; We shall also have no liability for any judgment, settlement or determination of (2) The names and addresses of any injured liability rendered or entered before notice persons and witnesses; and to us giving us a reasonable time in (3) The nature and location of any bodily in- which to protect our and the insured's jury or property damage arising out of interests. the occurrence. Nothing in this paragraph d. shall be Notice of an occurrence is not notice of a claim construed to expand upon coverage nor or suit. lengthen or expand the periods in which claims or suits are to be reported as set forth b. If a claim is made or suit is brought against in paragraphs a. through c,of this Section. any insured, you or that insured must, as a condition to recovery under this policy: 7. LEGAL ACTION AGAINST US (1) Immediately record the specifics of the No person or organization has a right under this claim or suit and the date received; insurance: (2) Notify us as soon as practicable, but not a. To join us as a party or otherwise bring us more than fifteen (15) days following into a suit asking for damages from an initial receipt of the claim or suit; insured; or PBG 0001 (01/06) 17 b. To sue us on this insurance unless all of its c. Method of Sharing terms have been fully complied with. Where the loss, property damage or bodily Subject to paragraph 6, above, a person or injury does not involve or arise from organization may sue us to recover on an agreed continuous or progressive bodily injury or settlement or on a final judgment against an property damage, or an exposure to insured obtained after an actual trial; but we will conditions in more than one policy year, the not be liable for damages that are not payable following method of sharing shall be followed, under the terms of this policy or that are in subject to the per occurrence limits of excess of the applicable limit of insurance. An coverage: agreed settlement means a settlement and release (1) If all of the other contributing insurance of liability signed by us, the insured and the permits contribution by equal shares, we claimant or the claimant's legal representative. will follow this method also, subject to the 8. OTHER INSURANCE, DEDUCTIBLES AND SELF- policy limits, until the highest per INSURED RETENTIONS occurrence limit of available insurance has been reached. If other insurance is available to an insured for a loss we cover under Coverage A or B of this (2) If any of the other insurance does not policy, our obligations are limited as follows: permit contribution by equal shares, we will contribute by limits, up to the a. Excess Insurance applicable per occurrence policy limit as This insurance is excess over any other set forth in this policy insurance, and deductibles or self-insured The above methods of sharing will also apply amounts applicable to the loss, damage, or where no primary insurance, as set forth in injury, whether such insurance is primary, paragraph b. above, is applicable to the loss. excess, contingent or contributing, and In such instance, all applicable deductibles whether an insured is a Named Insured or and/or self-insured amounts must first be additional insured under said policy. exhausted before this insurance will apply. When this insurance is excess over other in- surance, we will pay only our share of the amount of the loss, if any, that exceeds the sum of: 9. PREMIUM AUDITS AND ADJUSTMENTS (1) The total amount that all such other a. We will compute all premiums for this policy insurance would pay for the loss in the in accordance with our rules and rates. absence of this insurance;and b. If the premium for this policy is designated as (2) The total of all deductible and self- a MINIMUM AND DEPOSIT PREMIUM, then insured amounts under all other we shall be entitled to retain that premium in insurance. full, notwithstanding any subsequent audit We will share the remaining loss, if any, with showing an earned premium to be less than any other insurance that is not described in the amount designated as the MINIMUM AND this Excess Insurance provision and was not DEPOSIT PREMIUM. Notwithstanding the bought specifically to apply in excess of the foregoing, a MINIMUM AND DEPOSIT Limits of Insurance shown in the Declara- PREMIUM is subject to an upward tions. adjustment if an audit shows that the total earned premium exceeds the MINIMUM AND b. Primary Insurance DEPOSIT PREMIUM. In that case, the Where no other insurance is available to an amount by which the total earned premium Insured, this insurance is primary. When exceeds the MINIMUM AND DEPOSIT other insurance applicable to the loss, bodily PREMIUM shall be due and payable on notice injury, property damage, personal injury or to the first Named Insured. advertising on behalf of the insured is also c. The first Named Insured must keep records of excess, as set forth in paragraph a. above, the information we need for the premium then we will share with all that other excess computation, and send us copies at such insurance by the method described in times as we may request. paragraph c. below, except that this insurance shall always be excess over any d. If any Named Insured refuses to allow us other insurance available to an insured who access to records sufficient to conduct such is not a Named Insured under this policy,and audit, then we shall, at our sole discretion, which is issued to such insured as a Named have the option to pursue either one of the Insured. following: PBG 0001 (01/06) 16 (1) To initiate all available legal and/or not include receipts for operations on a equitable remedies available in a court of construction project or at a location where a proper jurisdiction to enforce and consolidated (Wrap-Up or Owner Controlled) accomplish the subject audit;or, insurance program has been provided by the (2) To invoice the first Named Insured for an prime contractor/project manager or owner of additional premium equal to the greater the construction project. If such receipts of twenty-five percent (25%) of the formed part of the estimated gross receipts for original MINIMUM AND DEPOSIT purposes of calculating a minimum and/or PREMIUM shown on the declarations deposit premium, upon appropriate page of this policy or five thousand application by you the portion of premium dollars($5,000)for each Named Insured. attributable to such receipts shall be returned to you and the minimum and/or deposit e. Additional premiums invoiced under Section premium refunded. IV.9.d(2),above, are due and payable on such invoicing to the first Named Insured. Interest i. The inclusion of receipts for purposes of at the maximum rate allowed by the first calculating any premium which, under Named Insured's state laws, or if no such paragraph g. above, should not have been laws, then interest at a rate of ten percent included shall not increase the coverage (10%) per annum, shall begin to accrue thirty g provided (30) days after such invoicing on all amounts the policy nor shall it waive the due from the first Named Insured under said applicationn of exclusion HH or any other Section IV, Paragraph 9d. above. The first exclusion. Named Insured further agrees to pay, upon 10. PREMIUMS demand, all reasonable attorneys' fees, The first Named Insured shown in the collection costs, and court costs incurred by Declarations: us to enforce our rights and remedies under either option (1) or option (2) set forth in said a. Is responsible for the payment of all premiums; Section IV, Paragraph 9d. above. and f. If a Named Insured fails to pay any additional b. Will be the payee for any return premiums we premium due as a result of an audit within pay. 30 days after the invoicing of such audit c. If the premium for this policy is not paid in full premium, we shall have the right, upon within the timeframe established by us (but in written notice to the Named Insured, to no event shall payment extend beyond thirty shorten the policy period of this policy. The (30) days from the inception date of this length of the policy period (measured in policy), months), as revised, will be determined by p Y). with good and legal tender funds, then multiplyingthe number of months in the this policy, and the coverage it provides, shall be deemed null and void as of the policy original policy period by a fraction, the inception date and we shall have no numerator of which is the amount of obligations under this policy to defend or premium paid by the Named Insured for the indemnify any insured against any claims or policy and the denominator of which is the suits. total earned premium for the policy(including audit premiums due). The policy term, as 11. REPRESENTATIONS revised, shall be deemed to have commenced g accepting this policy, on the date set forth in Item 2, of the Y p g P Y>You agree: Declarations. No coverage shall exist under a. The statements you made in the declarations this policy for bodily injury or property and applications and questionnaires are damage resulting from an occurrence which accurate and complete and are material to begins after the last day of the revised policy our agreement to issue this policy; period. b. We have issued this policy in reliance upon g. Any single waiver by us of auditing the your representations;and subject policy, including but not limited to c. False, misleading, inaccurate or incomplete waiving the audit upon a return premium, statements may, at our discretion, void shall not act as a continuing or permanent coverage or result in additional premium due. waiver, and we shall still have the right to 12. SEPARATION OF INSUREDS audit at any time, at our sole discretion, for a three year time period following the Except with respect to the Limits of Insurance, termination date of this policy. and any rights or duties specifically assigned to h. If the premium basis for this policy was based the first Named Insured, this insurance applies: upon gross receipts, such gross receipts shall a. As if each insured were the only insured;and PBG 0001 (01/06) 19 b. Separately to each insured against whom incurred in connection with the defense of claim is made or suit is brought. claims covered by this policy. 13. TRANSFER OF RIGHTS OF RECOVERY AGAINST c. As a condition precedent to your right to OTHERS TO US reimbursement,you and your attorneys shall If any insured has the right to recover all or part keep us informed of the progress of suit and of any payment we have made under this provide to us access to all information insurance, those rights are transferred to us. An necessary or appropriate to evaluate the insured must do nothing after loss to impair claim, suit, settlement and the these rights.At our request, an insured will bring reasonableness, amount and allocation of suit and help us enforce these rights. attorneys'fees and litigation expense. 14. TRANSFER OF YOUR RIGHTS AND DUTIES d. In any proceeding to seek reimbursement of UNDER THIS POLICY costs and expenses incurred in defending the suit,you shall bear the burden of proving the Your rights and duties under this policy may not amount of damages allocable to claims or be transferred without our written consent except allegations excluded by an exclusion giving us in the case of death of an individual Named the right, but not the obligation, to defend, Insured. the amount of damages allocable to claims or If you die, your rights and duties' under this allegations not excluded by the exclusion, policy will be transferred to your legal and the amount of reimbursement to which representative, but only while acting within the you are entitled. scope of duties as your legal representative. Until 16. SEVERABILITY your legal representative is appointed, anyone having proper temporary custody of your property In the event that any provision of this policy is will have your rights and duties, but only with determined by a court of competent jurisdiction to respect to that property. be invalid or unenforceable under applicable law, the remaining provisions hereof shall not be 15. REIMBURSEMENT OF DEFENSE COSTS WHERE affected thereby, and the invalid or unenforceable WE ELECT NOT TO DEFEND provision shall be deemed amended to the When an exclusion in this policy gives us the minimum extent necessary to render it valid and right, but excuses us from the obligation, to fully enforceable under applicable law. defend a suit, and we do not elect to defend such 17. As a condition precedent to coverage under this suit, we have no obligation to reimburse you for policy you or any other involved insured must fees and expenses incurred in the defense of any fully comply with all of the obligations imposed by claim for excluded damages. However, at the a homeowner's warranty or applicable "right to conclusion or resolution of the suit we shall cure"law. reimburse you for your reasonable attorneys'fees and litigation costs incurred in defending such SECTION V—DEFINITIONS suit which would otherwise have been incurred by us in defending claims for damages covered by 1. ADVERTISING INJURY this policy,in accordance with the following: a. Upon a settlement or final judgment Advertising injury means injury other than comprised of both damages covered by this bodily injury arising out of one or more of the policy and damages excluded by an exclusion following offenses committed in the course of and giving us the right but not the obligation to through the means of your advertising activities: defend, we will reimburse fees and costs in a. Oral or written publication of material that the proportion to which damages not slanders or libels a person,or excluded therein bear to the entire amount of b. Oral or written publication of material that the settlement or final judgment. violates a person's right of privacy. b. Where no damages are awarded against you 2. ADVERTISEMENT in a final judgment, nor any settlement reached requiring payment by you or on your Advertisement means a notice that is broadcast behalf or where no damages are paid for or published to the general public about your liability excluded by an exclusion giving us goods, products or services for the purpose of the right but not the obligation to defend,you attracting customers. For the purpose of this, and we agree to be bound by the decision of definition: an impartial arbitrator, who shall review all a. Notices that are published include material invoices and work performed by your placed on the internet or on similar electronic attorneys, and determine the amount to be means of communication;and reimbursed to you as fees and expenses b. Regarding web-sites, only that part of a web- PBG 0001 (01/06) 20 site that is about your goods, products or c. All parts of the world if: services for the purposes of attracting (1) The injury or damage arises out of: customers is considered an advertisement. 3. AUTO (a) Goods or products made and sold by you in the territory described in Auto means a land motor vehicle, trailer or semi- paragraph a.above;or trailer designed for travel on public roads, including any attached machinery or equipment. is(b) The activities a person whose home Auto does not include mobile equipment. in the territory described in paragraph a. above, but is away for a 4. BODILY INJURY period of less than thirty (30) days on Bodily injury means bodily injury, sickness or your business; and disease sustained by a person, including death (2) Your responsibility to pay damages is resulting from any of these at any time. Bodily determined in a suit on the merits, in the injury does not include shock or emotional, territory described in paragraph a. above mental or psychological distress, injury, trauma or in a settlement we agree to. or anguish, or other similar condition, unless g EXECUTIVE OFFICER such condition results solely and directly from prior physical injury, physical sickness or Executive officer means a person holding any of physical disease otherwise covered under this the officer positions created by your charter, policy. constitution, by-laws or any other similar 5. CLAIM governing document. Claim means a request or demand for money or 9. EXTERIOR INSULATION AND FINISH SYSTEM services because of bodily injury or property damage received by us or an insured, including Exterior Insulation and Finish System means an the service of suit or institution of arbitration exterior cladding or finish system used on any part proceedings, against an insured. Claim does not of any structure, and consisting of any of the include reports of accidents, acts, errors, following: occurrences, offenses or omissions which may give rise to a claim under this policy. (1) A rigid or semi-rigid insulation board made of 6. CONSTRUCTION PROJECT expanded polystyrene or other materials; Construction project means all of your work (2) The adhesive and /or mechanical fasteners that is performed on or in connection with, or used to attach the insulation board to the your product that is incorporated into, any work substrate; of real property improvement, construction,repair (3) A reinforced base coat; or alteration under a single agreement, contract or purchase order. Where your work is performed (4) A finish coat providing surface texture and under, or where your product is supplied in color. connection with, more than one agreement, 10. FUNGI, MOLD, ORGANIC PATHOGENS OR contract or purchase order but is part of a work BACTERIA of real property improvement or construction that is being done in phases, your work or your Fungi, mold, organic pathogens or bacteria product under all the agreements, contracts or means any type or form of fungus including mold purchase orders will be deemed to be part of the or mildew, bacteria, virus, allergen or pollen, or same construction project. Where the other organism or organic matter and any construction project involves work on more than mycotoxins, spores, scents or by-products or one structure or improvement, all of the substances released by fungi, mold, organic structures and ancillary construction shall be pathogens or bacteria. deemed part of the same construction project. 11. GROSS RECEIPTS 7. COVERAGE TERRITORY Gross receipts means the gross amount charged Coverage territory means: by you,your concessionaires or by others trading a. The United States of America (including its under your name for your work or your product territories and possessions), Puerto Rico and including: Canada; a. A11 goods or products,sold or distributed; b. International waters or airspace, provided the injury or damage does not occur in the course b. Operations performed during the policy of travel or transportation to or from any period;and place not included in a. above;or c. Rentals. PBG 0001 (01/06) 21 d. Dues or fees damage arising out of your rendering or Gross Receipts does not include: failure to render professional services; a. Any sales or excise taxes submitted to a d. That indemnifies any person or organization governmental division; for damage by fire to premises rented or loaned to you; b. Credits for repossessed merchandise and 14. LOADING OR UNLOADING products returned or allowances for damaged or spoiled goods; Loading or unloading means the handling of c. Finance charges for items sold on property: installment; a. After it is moved from the place where it is d. Freight charges on sales if such freight is accepted for movement into or onto an charged as a separate item on customer's aircraft,watercraft or auto. invoice;or b. While it is in or on an aircraft, water craft or e. Royalty income from patent rights or auto;or copyrights,which are not product sales. c. While it is being moved from an aircraft, 12. IMPAIRED PROPERTY water craft or auto to the place where it is finally delivered; Impaired property means tangible property, but loading or unloading does not include the other than your product or your work, that movement of property by means of a mechanical cannot be used or is less useful because: device, other than a hand truck, that is not a. It incorporates your product or your work attached to the aircraft,watercraft or auto. that is known or thought to be defective, 15. MOBILE EQUIPMENT deficient, inadequate or dangerous; or b. You have failed to fulfill the terms of a Mobile equipment means any of the following types of land vehicles, including any attached contract or agreement. machinery or equipment: 13. INSURED CONTRACT a. Bulldozers, farm machinery, forklifts and Insured contract means that part of any written other vehicles designed for use principally off contract or written agreement pertaining to your public roads; business (including an indemnification of a b. Vehicles maintained for use solely on or next municipality in connection with work performed to premises you own or rent; for a municipality) under which you assume the tort liability of another party to pay for bodily c. Vehicles that travel on crawler treads; injury or property damage to a third person or d. Vehicles, whether self-propelled or not, organization, but only if such bodily injury or maintained primarily to provide mobility to property damage is not otherwise excluded by permanently mounted. this insurance. Tort liability means liability that you would have in the absence of any contract or (1) Power cranes, shovels, loaders, diggers or agreement. drills;or An insured contract does not include that part of (2) Road construction or resurfacing any contract or agreement: equipment such as graders, scrapers or rollers. a. That indemnifies any person or organization for bodily injury or property damage arising e. Vehicles not described in a., b., c. or d. above out of construction or demolition operations, that are not self-propelled and are maintained within fifty(50) feet of any railroad property; primarily to provide mobility to permanently attached equipment of the following types: b. That indemnifies an architect, engineer or surveyor for injury or damage arising out of: (1) Air compressors, pumps and generators, including spraying, welding, building, (1) Preparing, approving or failing to prepare cleaning, geophysical exploration, lighting or approve maps, drawings, opinions, and well servicing equipment;or reports, surveys, field orders, change orders, or drawings, designs or (2) Cherry pickers and similar devices used specifications; or to raise or lower workers. (2) Giving directions or instructions, or f. Vehicles not described in a., b., c. or d. above failing to give them; maintained primarily for purposes other than the transportation of persons or cargo. c. Under which you, if an architect, engineer or surveyor, assume liability for an injury or PBG 0001 (01/06) 22 However, self-propelled vehicles with the following types of permanently attached equipment are not 19. PRODUCTS-COMPLETED OPERATIONS HAZARD mobile equipment but will be considered autos: Products-completed operations hazard: (1) Equipment designed primarily for: (a) Snow removal; a. Includes all bodily injury and property damage occurring away from premises you (b) Road maintenance, but not own or rent and arising out of your product construction or resurfacing; or your work except: (c) Street Cleaning; (1) Products that are still in your physical (2) Cherry pickers and similar devices possession; or mounted on automobile or truck chassis (2) Work that has not yet been completed or and used to raise or lower workers;and abandoned. (3) Air compressors, pumps and generators, b. Your work will be deemed completed or including spraying, welding, building, abandoned at the earliest of the following cleaning, geophysical exploration, lighting times: and well servicing equipment. (1) When all of the work called for in your 16. OCCURRENCE contract has been completed. Occurrence means an accident, including a (2) When all of the work to be done at the job continuous or repeated exposure to substantially site has been completed if your contract the same generally harmful condition. calls for work at more than one job site. 17. PERSONAL INJURY (3) When that part of the work done at a job Personal injury means injury, other than bodily site has been put to its intended use by injury, arising out of one or more of the following any person or organization. offenses: (4) When you refuse to continue a. False arrest,detention or imprisonment; performance of your work under any contract or when your continued work at b. Malicious prosecution the job site or your contract has been c. Actual and complete physical eviction of a terminated by anyone for any reason. person from a dwelling; (5) When all of your work in connection with d. Oral or written publication of material that the construction of a residential or slanders or libels a person or organization; or commercial building has been completed even though your contract may call for e. Oral or written publication of material that further work on additional buildings, but violates a person's right of privacy. in any event not later than the issuance 18. POLLUTANT of the Notice of Completion or similar document for the building. Pollutant means any solid, liquid, gaseous or thermal irritants or contaminants, which include Work that may need service, maintenance, but are not limited to smoke, vapor, soot, fumes, correction, repair or replacement, after it is acids, alkalis, chemicals, waste, biological complete as set forth in paragraph b. above, elements and agents, and intangibles such as will be treated as completed even though a noise, light and visual esthetics, the presence of contract requires such service, maintenance, any or all of which adversely affects human correction,repair or replacement. health or welfare, unfavorably alters ecological c. This hazard does not include bodily injury or balances or degrades the vitality of the property damage arising out of. environment for esthetic, cultural or historical purposes, whether such substances would be or (1) The transportation of property,unless the are deemed or thought to be toxic, and whether injury or damage arises out of a condition such substances are naturally occurring or in or on a vehicle created by the loading otherwise. or unloading of that vehicle; or Waste includes but is not limited to any material (2) The existence of tools, uninstalled or substances to be recycled, reconditioned or equipment or abandoned or unused reclaimed, and any substance or material materials. produced as a by-product or side effect of any 20. PROPERTY DAMAGE process. Property damage means physical injury to tangible property, including all resulting loss of PBG 0001 (01/06) 23 use of that property. All such loss of use shall be a. Warranties or representations made at any deemed to occur at the time of the physical injury time with respect to the fitness, quality, that caused it. Loss of use of tangible property durability, performance or use of your work; unaccompanied by physical injury to that and property is not property damage. b. The providing of or failure to provide 21. SUIT warnings or instructions. Suit means a civil proceeding in which damage because of bodily injury or property damage to which this insurance applies are alleged. Suit includes: a. An arbitration proceeding in which such damages are claimed and to which an insured must submit or does submit with our consent;or b. Any other alternative dispute resolution proceeding in which such damages are claimed and to which an insured submits with our consent. 22.YOUR PRODUCT Your product means: a. Any goods or products, other than real property, manufactured, sold, handled, distributed or disposed of by: (1) You; (2) Others trading under your name;or (3) A person or organization whose business or assets you have acquired; and b. Containers (other than vehicles), materials, parts or equipment furnished in connection with such goods or products. Your product includes: a. Warranties or representations made at any time with respect to the fitness, quality, durability, performance or use of your product;and b. The providing of or failure to provide warnings or instructions. Your product does not include vending machines or other property rented to or located for the use of others but not sold. 23.YOUR WORI{ Your work means: a. Work or operations performed by you or on your behalf;and b. Materials, parts or equipment furnished in connection with such work or operations. Your work includes: PBG 0001 (01/06) 24 PARAMOUNT HOME DEVELOPMENT A California Cnrporatiun Written Declaration To be prepared on Developer letterhead August 26, 2008 Dear Jon Bartel and Kerry Trost, Paramount Home Development is the Developer for Tract $471. My name is Philip R. Parley and I am the President. My company is a California Corporation with no employees, therefore I carry no Workers Compensation Insurance and Employers Liability Insurance as required under California Labor Code, paramount Home Development does not own any autos and therefore, it does not maintain Auto Liability Insurance. This should address the issue. tncly, ey Paramount Home Developmen P.O. Box 275481 Fresno, CA 93729-7548 Ph. (559) 434-9174 1 Fax. (559) 434-9064 Z0 'd b906 v2v 699 luawd01anaaawOHlunow-0arod Wd iz: io 8002-9Z-ono