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T-5464 - Certificate of Insurance - 9/13/2018
AC�® DAT (8/812 0018 CERTIFICATE OF LIABILITY INSURANCE THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER,AND THE CERTIFICATE HOLDER. IMPORTANT:if the certificate holder is an ADDITIONAL INSURED,the policy(les)must have ADDITIONAL INSURED provisions or be endorsed.It SUBROGATION IS WAIVED,subject to the terms and conditions of the policy,certain policies may require an endorsement.A statement on this w certificate does not confer rights to the certificate holder in lieu of such endorsement(s). c W Ka PRODUCER CO E, — Q Aon Risk Insurance services v st, r�—� {� f7111--- 'WE (866) 203-7122 f' (800) 363-0105 L LOS Angeles CA uleofficear U- MICIE�1\!lI��(�� UC.No.Ext: ITVC.No. 707 Wilshire Boulevard (� V ` U `D-MAILo suite 2600 DREss: 2 LOS Angeles CA 90017-0460 U INSURER(S)AFFORDING COVERAGE NAIC q 4 7018 INSURED NSURERA: Old Republic Insurance Company 24147 KB Home Sacramento, Inc. NSURERB: General security Indemnity Co of Arizona 20559 3005 Douglas Blvd., STE 250 City of Fresno NSURERC: Starr Indemnity & Liability Company 38318 Roseville CA 95661 USA Public WorksIIINSURER D: INSURER E: INSURER F: COVERAGES CERTIFICATE NUMBER:570072796019 REVISION NUMBER: THIS IS TO CERTIFY THAT 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.LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. Limlts shown are as requestatt AUL)INBRI TYPE OF INSURANCE POLICY NUMBER Op LIMITS LT;tX COMMERCIAL GENERAL LIABILITY MWZY EACH OCCURRENCE $1,000,000 DAMAGE TO RFNTED , CLAIMS-MADE El OCCUR PREh&:gP. r cc $5 uNonA}� $5 ,000 MED EXP(Any one person) $5 000 PERSONAL&ADV INJURY $1,000,000 m co GEN'L AGGREGATE LIMIT APPLIES PER: GENERALAGGREGATE $1,000,000 o PRO- m X POLICY ❑PRO- JECT LOC PRODUCTS El,000,OOO ti 0 OTHER: C Si si pca08341718 08/31/2018 08/31/2019 COMBINED SINGLE LIMIT AUTOMOBILE LIABILITY $1,000.000 !dent) ANY AUTO BODILY INJURY(Per person) Z OWNED SCHEDULED BODILY INJURY(Per accident) M AUTOS ONLY AUTOS PROPERTY DAMAGE NON-OWNED v jt HIRED AUTOS X Per acrJdenl ONLY AUTOS ONLY d B UMBRELLALIAB X OCCUR 1OF15583220171 12/01/201712/01/2Dl EACH OCCURRENCE $10,000,000 f.) SIR applies per policy terts & condi ions AGGREGATE $10,000,000 X EXCESS LIAR CLAIMS-MADE DED X NETENT*N C WORKERS COMPENSATION AND 1000001836 08/31/20181 8 1 X PTER A UTE 10TH. EMPLOYERS'LIABILITY IN ANY PROPRIETOR/PARTNER/EXECUTIVE E L.EACH ACCIDENT $1,000,000 OPr10EM9EMBER EXCLUDED? N NIA (Mandatory In NH) E L DISEASE-EA EMPLOYEE $1,000,000 M yyoess descdbe under E L.DISEASE-POLICY LIMIT $1,000,000-- DE$L`NIPPION OF OPERA!ION5*Plow `+ 1 _ DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES(ACORD 101,AddRlonal Remarks Schedule,may be attached it more space Is required) RE: Project: sunridge II Tract 5513 (Fresno, CA). City of Fresno, Its officers, officials, agents, employees and volunteers are included as Additional insured in accordance with the policy provisions of the General Liahility and Automobile Liability policies. General Liability and Automobile Liabilityy policies evidenced herein are Primary and Non-Contributory to other insurance available to an Additional insured, but on1X in accordance with the policy's provisions. A waiver of Subrogation fs granted in favor of city of Fresno, its officers, officials, agents, employees and volunteer in accordance with the policy rovisions of the Workers' compensation policy. 6L AI and Primary & Non-Contributory Endorsement #7 - Old Republic Form INCL 369 09 1108, we was - ISD rorm Gv Od as 10 13, Auto Al - Starr Indemnity Form SICA 1016 (02/12), Auto PNC - Starr Indemniry Farm CERTIFICATE HOLDER CANCELLATION +- SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. City Of Fresno ILLTOORUE0 REPRESENTATIVE 2600 Fresno S RSI AGEMENT DIVISI Fresno CP, 937 Approved P&A e _ r�i ©1988-2015 ACORD CORPORATION.All rights reserved. ACORD 25(2016103) �}i�ACORD__ �e fa oa o are registered marks of ACORD Signed Date September 12, 2018 RE: KB Home Sacramento Inc. Auto Insurance This correspondence constitutes KB Home Sacramento Inc.'s request for an exception to the following insurance requirements. Owned Autos Please be advised that neither KB Home Sacramento Inc. nor its parent company, KB Home, own any vehicles, and as such does not maintain"owned auto" or"scheduled auto" insurance coverage. Shouldy u have additional questions or concerns,please contact the following: k 14<_- ,Ann Rice Risk Management Specialist (310) 231-4053 arice@kbhome.com Susan Scouton V.P.,Risk Management (310) 231-4061 sscouton@kbhome.com KB HOME 10990 WILSHIRE BLVD LOS ANGELES, CA 90024 TEL 310 231 4000 FAX 310 231 4222 KBHOME COM WORKERS COMPENSATION AND EMPLOYERS LIABILITY INSURANCE POLICY WC 04 03 06 (Ed. 04-84) WAIVER OF OUR RIGHT TO RECOVER FROM OTHERS ENDORSEMENT-CALIFORNIA We have the right to recover our payments from anyone liable for an injury covered by this policy.We will not enforce our right against the person or organization named in the Schedule. (This agreement applies only to the extent that you perform work under a written contract that requires you to obtain this agreement from us.) You must maintain payroll records accurately segregating the remuneration of your employees while engaged in the work described in the Schedule. The additional premium for this endorsement shall be 2.0 %of the California workers'compensation premium otherwise due on such remuneration. Schedule Person or Organization Job Description City of Fresno Project: Laurel Grove Tract 5464 2600 Fresno Street, Room 4064 Fresno, CA 93721-3620 City of Fresno, its officers, officials,employees, agents and volunteers. This endorsement changes the policy to which it is attached and is effective on the date issued unless otherwise stated. (The information below is required only when this endorsement is issued subsequent to preparation of the policy.) Endorsement Effective:8/31/2018 Policy No.:1000001836 Endorsement No.: Insured: KB Home Premium: Insurance Company:STARR INDEMNITY&LIABILITY Countersignature: WC_ nd nn nR DATE(MMIDD/YYYY) ACRO CERTIFICATE OF LIABILITY INSURANCE 0811712018 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER.THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED LL REPRESENTATIVE OR PRODUCER,AND THE CERTIFICATE HOLDER. IMPORTANT:If the certificate holder Is an ADDITIONAL INSURED,the policy(ies)must have ADDITIONAL INSURED provisions or be endorsed.If SUBROGATION IS WAIVED,subject to the terms and conditions of the policy,certain policies may require an endorsement.A statement on this IG certificate does not confer rights to the certificate holder In lieu of such endorsement(s). e rE-MAL TACT PRODUCER E, n3 Aon Risk Insurance Services West, Inc. SAX (866) 283-7122 (800) 363-0105LOS Angeles CA office707 Wilshire Boulevard Suite 2600 RESS: _ Los Angeles CA 90017-0460 USA INSURER(S)AFFORDING COVERAGE NAIC it INSURED _INSURER A: Starr indemnity & Liability Company 38318 KB Home Sacramento, Inc. INSURER B: Old Republic Insurance company 24147 3005 Douglas Blvd., STE 250 Roseville CA 95661 USA INSURER C: General Security indemnity Co of Arizona 20559 INSURER D: INSURER E: INSURER F: COVERAGES CERTIFICATE NUMBER:570072712258 REVISION NUMBER: THIS 15 TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERICO INDICATED.NOTWITHSTANDING ANY REOUMEMENT,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.LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS Limits shown are as requested T FIOUCYEXP TYPE OF INSURANCE INS 'UBR%WD POLICY NUMBER IMp,;j�'YZFF M p/Yyyy. LIMITS X COMMERCIAL GENERAL LIABILITY NWZY 11 Bb + / EACH OCCURRENCE 51,000,000 CLAIMS-MADE I XI OCCUR PE.S�nce $500,000 MED EXP(Any one person) S5,000 PERSONAL B ADV INJURY $1,000,000 ,m GEN'LAGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $1,000,000 N X POLICY C]PRO- [:]LOC PRODUCTS-COMP/OPAGG s1,000,000 ECT OTHER: o r A AUTOMOBILE LIABILITY SISIPCA08341717 08/31/2017 08/31/2018 COMBINED SINGLE LIMIT $1,000,000 'n fER a ent ANYAUTO BODILY INJURY(Per person) Z OWNED SCHEDULED BODILY INJURY(Peraccidenl) m AUTOS ONLY AUTOS X HIREDAUTOS X NON-OWNED PROPERTY DAMAGE U ONLY AUTOS ONLY Per aCud-fi Ip t m C UMBRELLALUIB X OCCUR 1OF15583220171 12/0 201 2/ 1 018 EACH OCCURRENCE 510,000,000 C.1 SIR applies per policy terms & condi ions AGGREGATE $10,000,000 X EXCESS LIAB CLAIMS•MADE DED X IRETENTION A WORKFRS COMPENSATION AND 1000001836 0W/-3-1—/70 1-7 10 5 3 1 2 0 1X pER &OT YH- EMPLOYERS'LIABILITY STATU7 ANY PROPRIETOR I PARTNER I EXECUTIVE ❑ E.L.EACH ACCIDENT S1.000.000 OFFICERIMEMBER EXCLUDED? N N I A (Mandasory in NHl E.L.DISEASE-EA EMPLOYEE $1,000,000 Uas,describe under SCRIP IION OFOPERATIONS Wow E,L DISEASE-POLICY LIMIT $1,000.000 T_ of OESCRIPT30NOFOpERAT1ONs!LOCA710k5 7 VEHICLE5(ACORD 101,Additional Remarkc5chedule,maybe allachadd mora space la rsqufrad} RE: Project: Laurel Grove Tract 5464 (Fresno, CA). city Of Fresno, its officers, officials, agents, employees and volunteers �- are included as Additional insured in accordance with the policy provisions of the General Liability and Automobile Liability policies. General Liability and Automobile Liability policies evidenced herein are Primary and Non-contributory to other insurance available to an Additional insured, but only in accordance with the policy's provisions. A Waiver of Subrogation is granted in favor of City of Fresno, its officers, officials, agents, employees and volunteer in accordance with the policy provisions Of the Workers' compensation policy, 6L Al and Primary & Non-Contributory Endorsement #7 - Old Republic Foran #CL 369 ti a 009 1148, WC WOS - 150 Form CA 04 44 10 13, Auto AI - Starr Indemnity Form SICA 1016 (02/12), Auto PNC - Starr indemnity Form 1- CERTiFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE _ POLICY PROVISIONS. City of Fresno AUTHORIZED REPRESENTATIVE - 2600 Fresno Street, Room 4064 Fresno CA 93721-3620 USA RISK MANAGEMENTVISIApprovfeu ON ©1988.2015 ACORD CORPORATION.All rights reserved. ACORD 25(2vroved 1 rna ne and logo are registered marks of ACORD 5= Date AGENCY CUSTOMER ID: 10019842 LOC#: ADDITIONAL REMARKS SCHEDULE Page _ of _ AGENCY NAMED INSURED Aon Risk Insurance services west, Inc. KB Home Sacramento, Inc. P OLir..Y NUMBER See Certificate Number: 570072712258 CARRIER NAIC CODE See certificate Number: 570072712258 EFFECTIVE DATE. ADDITIONAL REMARKS THIS ADDITIONAL REMARKS FORM IS A SCHEDULE TO ACORD FORM, FORM NUMBER: ACORD 25 FORM TITLE: Certificate of I ialhlllly Insurance •1 ddIlnnnl 6crupi o,t of Operations+l,can� > >.. SICA 1017 (02/12), Auto Notice of cancellation - Starr Manuscript. ACORD 101(2008/011 ©2008 ACORD CORPORATION.All rights reserved. The ACORD name and logo are registered marks of ACORD IL 10 (12/06) OLD REPUBLIC INSURANCE COMPANY THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED - DESIGNATED PERSON OR ORGANIZATION This endorsement modifies insurance provided under the following. COMMERCIAL LIABILITY COVERAGE FORM SCHEDULE Name Of Additional Insured Persons Or Or antzation s City of Fresno, its officers, officials, agents, employees and volunteers SECTION II — WHO IS AN INSURED is amended to include as an additional insured the person(s) or organization(s) shown in the Schedule, but only with respect to liability for "bodily injury", "property damage" or"personal and advertising injury" caused, in whole or in part, by your acts or omissions or the acts or omissions of those acting on your behalf as respects the construction and maintenance of the Laurel Grove Tract 5464 (Fresno, CA) project. As respects any person(s) or organization(s) shown in the above Schedule with whom you have agreed in a written contract, agreement or permit to provide primary insurance coverage on a non-contributory basis, this insurance will be primary to and non-contributing with any other insurance available to such person(s)or organization(s). Waiver of subrogation applies as required by written contract. CL 369 021 1110 ENDORSEMENT#23 REVISED MWZY 311986 KB Home 12101/2017-12101/2018 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. POLICY CHANGES Policy Change POLICY NUMBER POLICY CHANGES COMPANY EFFECTIVE SISPCA08341717 08/31/2017 Starr Indemnity&Liability Company NAMED INSURED AUTHORIZED REPRESENTATIVE KB Home Richard Bessinger COVERAGE PARTS AFFECTED N/A EFFECTIVE 08/31/2017 IT IS HEREBY AGREED THAT THE FOLLOWING ADDITIONAL INSURED WILL BE ADDED TO THE POLICY: City of Fresno 2600 Fresno Street, Room 4064 Fresno, CA 93721-3620 IL 12 01 11 85 Copyright, Insurance Services Office, Inc., 1983 Page 1 of 1 ❑ Copyright, ISO Commercial Risk Services, Inc., 1983 1 Starr Indemnity&Liability Company Dallas,TX 1-866-519-2522 AMENDMENT - 30 DAY NOTICE OF CANCELLATION FOR THIRD PARTIES Policy Number: SISPCA08341717 Effective Date: 08/31/2017 at 12:01 A.M. Named Insured: KB Home This endorsement modifies the insurance coverage form(s)listed below that have been purchased by you and evidenced as such on the Declarations page. Please read the endorsement and respective policy(ies)carefully Commercial General Liability Coverage Form Products Completed Operations Coverage Form Business Auto Coverage Form It is agreed thirty(30)days' notice of cancellation will be given as respects the following certificate holder(s), except as respects non-payment of any premium, non-renewal,and/or per the First Named Insured's request: SCHEDULE City of Fresno 2600 Fresno Street Room 4064 Fresno, CA 93721-3620 The insurer will endeavor to provide advice of cancellation(the"Advice")to the certificate holders listed in the schedule by a-mail. Certificate holders include only those entities where thirty(30)days notice of cancellation is required by an"insured contract"but only with respects to an entity for which"you"are directly or indirectly performing"your work". This advance notification of a pending cancellation of coverage is intended as a courtesy only. Our failure to provide such Advice will neither extend the policy cancellation nor negate cancellation of the policy; nor will this failure result in obligation or liability of any kind upon the issuing insurer, its agents or representatives. This endorsement does not affect, in any way, coverage provided under this policy, nor the cancellation of this policy or the effective date thereof. The following definitions apply to this endorsement: 1.'First Named Insured'means the named insured shown in the Declarations Page of this policy Manuscript Page 1 of 1 Copyright©C.V.Starr&Company and Starr Indemnity Insurance Company. All rights reserved. Includes copyrighted material of ISO Properties,Inc.,used with its permission. Starr Indemnity& Liability Company Dallas, TX 1-866-519-2522 2.'Insurer'means the insurance company shown in the header on the Declarations Page of this policy. ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED. Signed for STARR INDEMNITY& LIABILITY COMPANY Charles H.Dangelo, President Nehemiah E.Ginsburg, General Counsel Manuscript Page 1 of 1 Copyright©C.V.Starr&Company and Starr Indemnity Insurance Company. All rights reserved. Includes copyrighted material of ISO Properties,Inc.,used with Its permission. u-40 A ENDORSEMENT Additional Premium Return Premium. This endorsement, effective 08/14/18 forms a part of Policy No. MWZY 311986 Policy effective date: 12/01/17 Expiration date: 12/01/18 Issued to: KB Home by OLD REPUBLIC INSURANCE COMPANY, Greensburg, Pennsylvania It is hereby understood and agreed that the following forms are added on behalf of The City of Fresno, its officers, officials, employees,agents and volunteers as respects the Laurel Grove Tract 5464 (Fresno, CA) project: PIL 028 05 10, Designated Entity-Notice Of Cancellation Provided By Us CL 369 035 1214,Additional Insured- Designated Person Or Organization Primary And Non-Contributory Coverage Endorsement# 23 Nothing herein contained shall be held to vary, alter,waive or extend any of the terms, conditions, agreements or limitations of the Policy or any Endorsement attached thereto, except as herein set forth. This Endorsement shall not be valid until countersigned by a duly authorized representative of the Company Attest: leo� � Secretary President Countersigned at Brookfield_, WI this 15th day of August 20 18 Authorized Representative ENDORSEMENT#23 MWZY 311966 KS Home 12/01/2017-12101/2016 This page intentionally left blank IL 10 (12106) OLD REPUBLIC INSURANCE COMPANY THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY DESIGNATED ENTITY- NOTICE OF CANCELLATION PROVIDED BY US SCHEDULE Number of Days Notice of Cancellation: 30 Person or Organization: The City of Fresno, its officers, officials, employees, agents and volunteers Re: Laurel Grove Tract 5464 (Fresno, CA) project Address: City of Fresno 2600 Fresno Street, Room 4064 Fresno, CA 93721-3620 Provisions If we cancel this policy for any statutorily permitted reason other than nonpayment of premium, and a number of days is shown for cancellation in the schedule above, we will mail notice of cancellation to the person or organization shown in the schedule above. We will mail such notice to the address shown in the schedule above at least the number of days shown for cancellation in the schedule above before the effective date of cancellation. PIL 028 05 10 ENDORSEMENT#23 MWZY 311966 K8 Home 1210112017-1210112018 This page intentionally left blank IL 10 (12106) OLD REPUBLIC INSURANCE COMPANY THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY ADDITIONAL INSURED -DESIGNATED PERSON OR ORGANIZATION PRIMARY AND NON-CONTRIBUTORY COVERAGE This endorsement modifies insurance provided under the following: COMMERCIAL LIABILITY POLICY SCHEDULE Name Of Additional Insured Person(s)Or Organization(s): The City of Fresno, its officers, officials, employees, agents and volunteers Re: Laurel Grove Tract 5464(Fresno, CA) project i I A. SECTION II — WHO IS AN INSURED is amended to include as an additional insured any person(s)or organization(s)shown in the Schedule above, but only with respect to liability for: 1 "Bodily injury", "property damage", or "personal and advertising injury" caused, in whole or in part, by: a. Your acts or omissions; or b. The acts or omissions of those acting on your behalf; in the performance of your ongoing operations for the additional insured. A person's or organization's status as an additional insured under this endorsement ends when your operations for that additional insured are completed. 2. "Bodily injury" or "property damage" caused by "your product" and included in the "products-completed operations hazard"; 3. "Bodily injury" or "property damage' caused by "your work" performed for the additional insured(s) at the locations(s) designated in the contract, agreement or permit, and included in the"products-completed operations hazard"; or 4. "Bodily injury" or"property damage" arising out of"your products"which are distributed or sold in the regular course of a vendor's business, subject to the following additional exclusions: (a) The insurance afforded the vendor does not apply to (1) "Bodily injury" or "property damage" for which the vendor is obligated to pay damages by reason of the assumption of liability in a contract or CL 369 035 1214 Page 1 of 2 ENDORSEMENT#23 MW7Y311986 KB Home (2/01/2017-12/01/2018 agreement. This exclusion does not apply to liability for damages that the vendor would have in the absence of the contract or agreement; (2) Any express warranty unauthorized by you; (3) Any physical or chemical change in the product made intentionally by the vendor; (4) Repackaging, except when unpacked solely for the purpose of inspection, demonstration, testing, or the substitution of parts under instructions from the manufacturer, and then repackaged in the original container; (5) Any failure to make such inspections, adjustments, tests or servicing as the vendor has agreed to make or normally undertakes to make in the usual course of business, in connection with the distribution or sale of the products; (6) Demonstration, installation, servicing or repair operations, except such operations performed at the vendor's premises in connection with the sale of the product; (7) Products which, after distribution or sale by you, have been labeled or relabeled or used as a container, part or ingredient of any other thing or substance by or for the vendors; or (8) "Bodily injury' or"property damage" arising out of the sole negligence of the vendor for its own acts or omissions or those of its employees or anyone else acting on its behalf. However, this exclusion does not apply to the exceptions contained in Subparagraphs (4) or (6) above, or to such inspections, adjustments, tests or servicing as the vendor has agreed to make or normally undertakes to make in the usual course of business, in connection with the distribution or sale of the products. (b) This insurance does not apply to any insured person or organization, from whom you have acquired such products, or any ingredient, part or container, entering into, accompanying or containing such products. B. It is agreed that the insurance provided for the benefit of the above additional insured(s) shall be primary and non-contributory, but only with respect to liability for "bodily injury", "property damage"or"personal and advertising injury"caused, in whole or in part, by: 1. Your acts or omissions; or 2. The acts or omissions of those acting on your behalf; in the performance of your ongoing operations for the additional insured(s) at the location(s) designated above. All other policy terms, conditions, definitions and exclusions remain unchanged CL 369 035 1214 Page 2 of 2 ENDORSEMENT#23 MWZY311986 KB Home 1210112017-1210112018 WORKERS COMPENSATION AND EMPLOYERS LIABILITY INSURANCE POLICY WC 04 03 06 (Ed. 04-84) WAIVER OF OUR RIGHT TO RECOVER FROM OTHERS ENDORSEMENT-CALIFORNIA We have the right to recover our payments from anyone liable for an injury covered by this policy.We will not enforce our right against the person or organization named in the Schedule. (This agreement applies only to the extent that you perform work under a written contract that requires you to obtain this agreement from us.) You must maintain payroll records accurately segregating the remuneration of your employees while engaged in the work described in the Schedule. The additional premium for this endorsement shall be 2.0 %of the California workers'compensation premium otherwise due on such remuneration. Schedule Person or Organization Job Description City of Fresno Project: Laurel Grove Tract 5464 2600 Fresno Street, Room 4064 Fresno, CA 93721-3620 City of Fresno,its officers, officials, employees, agents and volunteers. This endorsement changes the policy to which it is attached and is effective on the date issued unless otherwise stated. (The information below is required only when this endorsement is issued subsequent to preparation of the policy.) Endorsement Effective:8/3112017 Policy No: 1000001836 Endorsement Na: Insured: KB Home Premium: Insurance Company:STARR INDEMNITY&LIABILITY Countersignature: we, nA n'i na SC04OR General Security Indemnity Company of Arizona (The "Company") Home Offices Administrative Offices 2338 W.Royal Palm Road,Suite J One Seaport Plaza,199 Water Street,21 st Floor Phoenix,AZ 85021 New York,New York 10038-3526 U.S.Toll-Free(outside NY)800-326-3299 Telephone No:+(1)212-480-9000 Policy Number 1OF155832-2017-1 COMMERCIAL UMBRELLA LIABILITY HOME BUILDERS POLICY - DECLARATIONS Item 1� (a) Named Insured: KB HOME and its Subsidiary(ies) and Affiliate(s) (b) Address of Named Insured: 10990 Wilshire Boulevard, 7th Floor, Los Angeles, California 90024- USA Item 2: Policy Inception Date: 12/01/2017 Policy Expiration Date: 12/01/2018 12:01 AM standard time at the address of the Insured Item 3: Limits of Liability: 3A Each Occurrence Limit $20,000,000 3B General Aggregate $20,000,000 3C Products Completed Operations Aggregate $20,000,000 Item 4 Self-Insured Retention Schedule: 4A Retention $25,000,000 Each Occurrence / Annual Aggregate (i) As respects Home Builder's Limited Warranty for each occurrence within the first year of Close of Escrow which gives rise to Limited Warranty Liability, once the amount paid by the Insured for Limited Warranty Liability as respects such Home Builder's Limited Warranty exceeds $10,000 each Occurrence, then 100% of the amount paid (100% of the total claim) shall erode the Aggregate Retention. If Losses per occurrence do not exceed $10,000 then these costs shall not erode the Retention. (ii) In the event that the Annual Aggregate Retention shown in 4A or 4B is exhausted by the payment of Loss(es), a Retention of $250,000 each Occurrence / $5,000,000 Annual Aggregate shall apply, thereafter a $100,000 each occurrence deductible will apply. 4B Schedule(s) of Underlying Insurance: SEE SCHEDULE OF UNDERLYING, Endorsement 2 Item 5: Warranty Service Company: KB Home self-administered Warranty Item 6: Representative of Named Insured: Aon Risk Solutions 707 Wilshire Blvd., Suite 2600 Los Angeles, CA 90017. Item 7: Advance Premium: Minimum Premium: TRIA Premium: 1IPage SCOOOR General Security Indemnity Company of Arizona (The "Company") Home Offices Administrative Offices 2338 W.Royal Palm Road,Suite J One Seaport Plaza,199 Water Street,21st Floor Phoenbc,AZ 85021 New York,New York 10038-3526 U.S.Toll-Free(outside NY)800-326-3299 Telephone No:+(1)212-480-9000 Policy Number 1OF155832-2017-1 Item 8: Currency: (a) Premium: UNITED STATES DOLLARS (b) Claims: UNITED STATES DOLLARS Item 9: Notices: (a) All Notices of Occurrence: General Security Indemnity Company of Arizona Claims Department One Seaport Plaza, 199 Water Street, 21 st Floor New York, New York 10038-3526 Email: Chica o-Claims scor.corn (b) All other Notices: General Security Indemnity Company of Arizona Underwriting Department One Seaport Plaza, 199 Water Street, 21st Floor New York, New York 10038-3526 Item 10: Application Date: 12/01/2017 March 7 2018 Pascal J. MADIBA AUTHORIZED REPRESENTATIVE 2 1 P a g e SC AOR General Security Indemnity Company of Arizona (The "Company") Home Offices Administrative Offices 2338 W.Royal Palm Road,Suite J One Seaport Plaza,199 Water Street,21st Floor Phoenix,AZ 85021 New York,New York 1003&3526 U.S.Toll-Free(outside NY)800-326-3299 Telephone No:+(1)212-480-9000 Policy Nurnher _1pF155832-2017-1 HOME BUILDERS COMMERCIAL UMBRELLA LIABILITY POLICY Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and what is and is not covered. Throughout this policy the words "you" and "your' refer to the Named Insured shown in the Declarations and any other person or organization qualifying as a Named Insured under this policy. The words "we," "us" and "our or the"Company" refer to GENERAL SECURITY INDEMNITY COMPANY OF ARIZONA. The word Insured means any person or organization qualifying as such under Section V Definitions. Other words and phrases that appear in bold print have special meaning. See Section V Definitions. In consideration of the payment of the premium and in reliance upon the statements in the Declarations, we agree to provide coverage as follows: 1. INSURING AGREEMENT EXCESS LIABILITY OVER INSURED'S SELF-INSURED RETENTION AND SCHEDULED UNDERLYING INSURANCE A. We will pay on behalf of the Insured as Loss those sums in excess of the Self-Insured Retention that the Insured becomes contractually or legally obligated to pay as Damages by reason of liability imposed by law to which this insurance applies because of Bodily Injury, Property Damage (including Limited Warranty Liability), or Personal Injury and Advertising Injury or because of Bodily Injury or Property Damage to which this insurance applies assumed by the Insured under an Insured Contract or a Home Builder's Limited Warranty; 1. the Bodily Injury or Property Damage occurs during the Policy Period; or 2. the Bodily Injury or Property Damage that occurs after the end of the Policy Period and within either the applicable statute of repose or fifteen (15) years from the Common Area transfer of title or from the Unit close of escrow, whichever is greater, and arises out of a Unit or Common Area,the deed or title to which was recorded in the name of the original third party purchaser with the county clerk during the Policy Period; or 3. the Personal Injury and Advertising Injury are caused by an Occurrence arising out of your business, but only if the Occurrence occurs during the Policy Period. SCAOR General Security Indemnity Company of Arizona (The "Company") Home Offices Administrative Offices 2338 W.Royal Palm Road,Suite J One Seaport Plaza,199 Water Street,21 st Floor Phoenix,AZ 85021 New York,New York 10038-3526 U.S.Toll-Free(outside NY)800-326-3299 Telephone No:+(1)212-480-9000 `Policy Number 1 OF155832-2017-1 The coverage provided in subparts 1.A.1.,2. and 3. is subject to the following provision: As respects any Occurrence, there shall be no coverage under this policy if, prior to the Policy Period, the Insured knew that the Bodily Injury, Property Damage or Personal Injury and Advertising Injury caused by such Occurrence had, in whole or in part, commenced. B. Subject to the provisions and restrictions under 1.A1., 2. and 3. and all other terms and conditions of this policy, we will pay on behalf of the Insured as Loss those sums in excess of the total applicable limits of Scheduled Underlying Insurance that the Insured becomes legally obligated to pay as Damages, caused by an Occurrence, provided the Damages would be covered by Scheduled Underlying Insurance Coverage under this subsection 1.6 will follow the terms, definitions, conditions and exclusions of Scheduled Underlying Insurance, subject to the Policy Period, Limits of Liability, premium and all other terms, definitions, conditions and exclusions of this policy. If any provisions of Scheduled Underlying Insurance conflict with any provisions of this policy, the provisions of this policy will apply. C. If we are prevented by law or statute from paying covered Damages on behalf of the Insured, then we will indemnify the Insured for those sums in excess of the Self-Insured Retention or Scheduled Underlying Insurance. D. Wewill not pay a Loss,unless the Self-Insured Retention has been satisfied(whether by the Insured and / or any insurer providing coverage to the Insured), or the Scheduled Underlying Insurance has been exhausted, by the payment of such Loss, and in no event shall there be coverage for any Loss that is not subject to a Self-Insured Retention or is not excess of Scheduled Underlying Insurance. In the event an Occurrence causes Loss that is covered by Scheduled Underlying Insurance and is subject to a Self-Insured Retention, then the Insured must exhaust the limits of the applicable Scheduled Underlying Insurance or satisfy the applicable Retention in Item 4 of the Declarations, whichever is greater. E. The amount we will pay for Damages is limited as described in Section IV. Limits of Liability. F. Notwithstanding paragraphs A., B., C. and D. above; 1. the Limits of Liability and Self-insured Retention of this policy apply separately to each annual period of the Policy Period ; 2. as respects covered Damages occurring after the end of the Policy Period and arising out of a Unit or Common Area, the applicable Limits of Liability and Self-insured Retentions shall be those that were in effect at the time of the Common Area transfer of title or the Unit close of escrow, from which the covered Damages arise. 4 1 P a g e SCOO/Z General Security Indemnity Company of Arizona (The "Company") Home Offices Adminisbative Offices 2338 W.Royal Palm Road,Suite J One Seaport Plaza,199 Water Street,21 st Floor Phoenix,AZ 85021 New York,New York 10038-3526 U.S.Toll-Free(outside NY)800-326-3299 Telephone No:+(1)212-480-9000 Policy Number 1OF155832-2017-1 IL SELF-INSURED RETENTION A. As respects those coverages listed in the Self-Insured Retention Schedule referenced in Item 4 of the Declarations, this insurance applies only in excess of the Self-Insured Retention. B. The Each Occurrence Self-Insured Retention and Aggregate Self-Insured Retention, if any, shown in the Self-Insured Retention Schedule will only be satisfied by the payment of Loss. The Aggregate Self-Insured Retention, if any, shall apply to all Occurrences as to which coverage for the Policy Period applies, and upon satisfaction thereof, the Each Occurrence Self-Insured Retention that has not been satisfied as respects any such Occurrence shall be deemed satisfied. C. The Self-Insured Retention applies whether or not there is any available Other Insurance. If there is insurance purchased by the Insured applicable to a Loss, including insurance for which the Insured qualifies as an additional insured, amounts received through such insurance for payment of the Loss as respects an Occurrence may be applied to satisfy the applicable Each Occurrence Self-Insured Retention(s) (and, if any, the applicable Aggregate Self-insured Retention) shown in the Self-Insured Retention Schedule. D. The Each Occurrence Self-Insured Retention shown in the Self-Insured Retention Schedule is the most the Insured will pay for all Loss with respect to any one covered Occurrence before attachment of the coverage of this policy as respects such Occurrence. E. The Aggregate Self-Insured Retention, if any, shown in the Self-Insured Retention Schedule is the most the Insured will pay for all Loss before attachment of the coverage of this policy as respects all covered Occurrences to which such Aggregate Self-Insured Retention applies, as provided in subsection II.B. F. Nothing in subsections ILC or D shall affect the provisions of subsections LA or B as respects the requirements for attachment of coverage under this policy as respects Scheduled Underlying Insurance or affect the limits of liability set forth in Section IV, Limits of Liability. G. Notwithstanding paragraphs A., B., C., D. and F. above; 1. the Limits of Liability and Self-insured Retention of this policy apply separately to each annual period of the Policy Period; 2. as respects covered Damages occurring after the end of the Policy Period and arising out of a Unit or Common Area, the applicable Limits of Liability and Self-insured Retentions shall be those that were in effect at the time of the Common Area transfer of title or the Unit close of escrow, from which the covered Damages arise. 5 1 P a g e SCoR General Security Indemnity Company of Arizona (The "Company") Home Offices Administrative Offices 2338 W.Royal Palm Road,Suite J One Seaport Plaza,199 Water Street,21 st Floor Phcenoc,AZ 85021 New York,New York 10038-3526 U.S.Toll-Free(outside NY)8003 00 26-3299 Telephone No:+(1)212-480-90 Policy Number 10F15W32-2017-1 111. DEFENSE PROVISIONS We will have no duty to defend any Suit against the Insured unless Scheduled Underlying Insurance policies or the Self-Insured Retention have been exhausted as set forth in Section II of this policy. We will, however, have the right but not the obligation, and shall be given the opportunity,to associate with the Insured and/or the Insured's other insurers in the defense of any Suit and the investigation of any claim to which this policy may apply. If we exercise any of these rights, we will do so at our own expense. IV. LIMITS OF LIABILITY A. The Limits of Liability shown in Item 3 of the Declarations and the rules below state the most we will pay regardless of the number of: 1. Insureds; 2. claims made or Suits brought against any or all Insureds; 3. persons or organizations making claims or bringing Suits; or 4. coverages provided under this policy. B. As respects all Occurrences to which coverage applies, the greater amount of the General Aggregate or Products Completed Operations Aggregate as applicable in Item 3 of the Declarations is the most we will pay for all "Loss" covered under this policy. The General Aggregate and Products-Completed Operations Aggregate (which includes Limited Warranty Liability) of this policy applies separately to each consecutive annual period and to any remaining period of less than 12 months, starting with the beginning of the policy period shown in the Declarations, unless the policy period is extended after issuance for an additional period of less than 12 months. In that case, the additional period will be deemed part of the last preceding period for purposes of determining the Limits of Liability. C. Subject to all other limitations of this Section IV, the Each Occurrence Limit stated in Item 3A of the Declarations is the most we will pay for the sum of all Loss arising out of any one Occurrence. D. Subject to all other limitations of this Section IV, the most we will pay for Loss under this policy on behalf of any person or organization to whom you are obligated by written Insured Contract to provide insurance such as is afforded by this policy is the lesser of the Limits of Liability shown In Item 3 of the Declarations or the Limits of Liability you agreed to procure in such written Insured Contract. E. If the Self-Insured Retention is satisfied, or limits of Scheduled Underlying Insurance are eroded or exhausted, by the payment of Loss, we will: 1. in the event of partial satisfaction or erosion, pay excess of the remaining limits of Self-Insured Retention or Scheduled Underlying Insurance; and, 6Page JCOOO1C General Security Indemnity Company of Arizona (The "Company") Home Offices Administrative Offices 2338 W.Royal Palm Road,Suite J One Seaport Plaza,199 Water Street,21 st Floor Phoenix,AZ 85021 New York,New York 10038-3526 U.S.Toll-Free(outside NY)800-326-3299 Telephone No:+(1)212-480-9000 PoliLyy NumGer 10F155832-2017-1 2. in the event of full satisfaction or exhaustion, continue in force as primary of the satisfied or exhausted Self-Insured Retention or Scheduled Underlying Insurance. F. As respects any Loss as to which coverage under this policy attaches pursuant to subsection 1.6, the Limits of Liability set forth in subsections B and C of this Section IV apply only in excess of the total applicable limits of Scheduled Underlying Insurance. If, however, a policy shown in the Schedule of Underlying Insurance has a limit of insurance greater than the amount shown in such schedule, this policy will apply in excess of the greater amount. H. Defense Costs are included within Damages and Loss and payment of Defense Costs will erode and may exhaust the applicable Limits of Liability of this policy. J. The Limits of Liability as respects the Products-Completed Operations Aggregate applies to all covered Occurrences that arise out of the Products-Completed Operations Hazard which take place during the Policy Period and for a period of fifteen (15) years after the end of the Policy Period or the applicable statute of repose, which ever period is greater. 71 Page SCIJR General Security Indemnity Company of Arizona (The "Company") Home offices Administrative Offices 2338 W.Royal Palm Road,Suite J One Seaport Plaza, 199 Water Street,21 st Floor Phoenix,AZ 85021 New York,New York 10038-3526 U.S.Toll-Free(outside NY)800-326-3299 Telephone No:+(1)212-480-9000 Policy Number 1OF155832-2017-1 V. DEFINITIONS A. Advertisement means a notice that is broadcast or published to the general public or specific market segments about your goods, products or services for the purpose of attracting customers or supporters. For the purposes of this definition: 1. notices that are published include material placed on the Internet or on similar electronic means of communications; and 2. regarding web-sites, only that part of a web-site that is about your goods, products or services for the purposes of attracting customers or supporters is considered an Advertisement. B. Auto means a land motor vehicle, trailer or semitrailer designed for travel on public roads, including any attached machinery or equipment. Auto does not include Mobile Equipment. C. Bodily Injury means bodily injury, sickness or disease sustained by any person, including death or mental anguish resulting from any of these at any time. D. Common Area means: 1. Improvements to real estate, regardless of ownership, which are not part of a Unit and are contained within the geographical boundaries and are an integral part of the Project. 2. Common Area shall include, but not be limited to, any roads, curbs, retaining or decorative walls, berms, recreation amenities of any kind,sewer and water mains,athletic facilities,common rooms or recreation facilities,fire roads and breaks, utility access easements and any other Improvement given, conveyed, sold, or otherwise transferred by the Insured to any government entity or homeowners association, by Whatever name. 3. Common Area also includes real property and Improvements thereon, sometimes designated by contract or referred to as offsite improvements to real property of others such as public roads, parks, buildings or areas that are required by contract or by a governmental entity to be built as a condition to building any Units covered by this Policy. E. Construction Defect means a deficiency in the construction of a Unit or Common Area that is actionable under state law, or a deficiency or other failure in construction that is required to be addressed by the Home Builder's Limited Warranty issued by the Insured or on its behalf. F. Close of Escrow means the date when ownership and title or deed to a Unit is transferred or conveyed to the original third-party purchaser that is not affiliated with the Named Insured. G. Damages means all forms of compensatory Damages, monetary Damages and statutory Damages, punitive or exemplary Damages or multiple Damages, and costs of compliance with equitable relief, other than governmental (civil or criminal) fines or penalties, which the Insured shall be obligated to pay by reason of judgment or settlement for liability on account of Bodily Injury, Property Damage and/or Personal Injury and Advertising Injury which is, and/or but for the amount thereof would be, covered by this policy, and shall include Defense Costs Damages also includes amounts that the Insured is obligated to pay and does pay pursuant to a Home Builder's Limited Warranty 8 1 P a g e SCOOOR General Security Indemnity Company of Arizona (The "Company") Home Offices Administrative Offices 2338 W.Royal Palm Road,Suite J One Seaport Plaza,199 Water Street,21 st Floor Phoenix,AZ 85021 New York,New York 10038-3526 U.S.Toll-Free(outside NY)800-326-3299 Telephone No:+(1)212-480-9000 Policy Number 10F155832-2017-1 Damages includes "Auto Liability". Auto Liability which means liability arising out of Bodily Injury or Property Damage caused by the operation or other movement of an Auto. H. Defense Costs means reasonable legal costs and reasonable other expenses incurred by or on behalf of the Insured in connection with the investigation and defense of any actual or anticipated Suit, including attomeys'fees and disbursements, law costs, premiums on attachment or appeal bonds, pre- judgment and post-judgment interest,expenses for experts and for investigation, adjustment, appraisal and settlement. Defense Costs also include reasonable legal costs and reasonable other expenses incurred by the Insured, that are outside of any Warranty, to cause a subcontractor to correct the subcontractor's deficient work or manage a claim arising out of that subcontractor's work. Defense Costs shall exclude the salaries, wages, and benefits of the Insured's employees and the Insured's administrative expenses I. Fungus(!) Mold(s)and Spore(s) means: 1. Fungus(i) includes, but is not limited to, any of the plants or organisms belonging to the major group Fungi. lacking chlorophyll, and including Molds, rusts, mildews, smuts and mushrooms. 2. Mold(s)includes, but is not limited to,any superficial growth produced on damp or decaying organic matter or on living organisms, and fungi that produce Molds. 3. Spore(s) means any dormant or reproductive body produced by or arising or emanating out of any Fungus(i), Mold(s), mildew, plants, organisms or microorganisms. J. Home Builder's Limited Warranty or Warranty means the written express limited warranty agreement administered by the Insured or by a warranty service company that is shown in Item 5 of the Declarations and issued by the Insured or on its behalf to the purchaser of a Unit or Common Area covered under this policy, but only if the close of escrow on the Unit or Common Area occurs during the Policy Period. K. Hostile Fire means a fire that becomes uncontrollable or breaks out from where it was intended to be. L. Impaired Property means tangible property, other than Your Product or Your Work, that cannot be used or is less useful because: 1. it incorporates Your Product or Your Work that is known or thought to be defective, deficient, inadequate or dangerous; or 2. you have failed to fulfill the terms of a contract or agreement; if such property can be restored to use by: 1. the repair, replacement, adjustment or removal of Your Product or Your Work; or 2. you're fulfilling the terms of the contract or agreement. M. Improvement means an addition to real property, whether permanent or not, and includes an addition that increases its value or utility or that enhances its appearance. N. Insured means: 1. the Named Insured; 2. if you are designated in the Declarations as: SCOOD/Z General Security Indemnity Company of Arizona (The "Company") Home Offices Administrative Offices 2338 W.Royal Palm Road,Suite J One Seaport Plaza,199 Water Street,21 st Floor Phoenix,AZ 85021 New York,New York 10038-3526 U.S.Toll-Free(outside NY)800-326-3299 Telephone No:+(1)212-480-9000 Poli Number 10F155832-2017-1 a. an individual, you and your spouse are Insureds, but only with respect to the conduct of a business of which you are the sole owner; b. a partnership or joint venture, you are an Insured. Your members and your partners are also Insureds, but only with respect to the conduct of your business; c. a limited liability company, you are an Insured. Your members are also Insureds, but only with respect to the conduct of your business. Your managers are Insureds, but only with respect to their duties as your managers; d. an organization other than a partnership, joint venture or limited liability company, you are an Insured.Your executive officers and directors are Insureds, but only with respect to their duties as your officers or directors. Your stockholders are also Insureds, but only with respect to their liability as stockholders; e. a trust,you are an Insured.Your trustees are also Insureds, but only with respect to their duties as trustees; 3. your employees other than your executive officers (if you are an organization other than a partnership,joint venture or limited liability company) or your managers(if you are a limited liability company), but only for acts within the scope of their employment by you or while performing duties related to the conduct of your business; 4. your volunteer workers only while performing duties related to the conduct of your business; 5. any person or organization (other than your employee or volunteer worker) while acting as your real estate manager; 6. any person or organization to whom you are obligated by a written contract to provide insurance such as is afforded by this Policy, but only with respect to liability arising out of such person's or organization's operations or work performed and completed at any of your project sites pursuant to the contract. There will be no coverage under this Policy for Bodily Injury, Property Damage or Personal Injury and Advertising that occurred before you entered into such contract or for work performed outside the scope of such contract or agreement. Notwithstanding any of the above, no person or organization is an Insured with respect to the conduct of any current, past or newly formed partnership, joint venture or limited liability company that is not designated as a Named Insured in Item 1 of the Declarations. O. Insured Contract means that part of any contract or agreement pertaining to your business under which any Insured assumes the tort liability of another party to pay for Bodily Injury or Property Damage and Personal Injury and Advertising Injury to a third person or organization. Tort liability means a liability that would be imposed by law in the absence of any contract or agreement. Insured Contract does not include that part of any contract or agreement: 1) that indemnifies a railroad for Bodily Injury or Property Damage arising out of construction or demolition operations, within 50 feet of any railroad property and affecting any railroad bridge or trestle, tracks, roadbeds, tunnel, underpass or crossing; 2) that indemnifies an architect, engineer or surveyor for injury or damage arising out of: a. preparing, approving, or failing to prepare or approve, maps, shop drawings, opinions, reports, surveys, field orders, change orders or drawings and specifications; or 101Page SCIJR General Security Indemnity Company of Arizona (The "Company") Home Offices Administrative Offices 2338 W.Royal Palm Road,Suite J One Seaport Plaza,199 Water Sheet,21 st Floor Phoenix,AZ 85021 New York,New York 10038-3526 U.S.Toll-Free(outside NY)800-326-3299 Telephone No:+(1)212A80-9000 Policy Number 10F155832-2017-1 b. giving directions or instructions, or failing to give them, if that is the primary cause of the injury or damage; or 3) under which the Insured, if an architect, engineer or surveyor, assumes liability for an injury or damage arising out of the Insured's rendering or failure to render professional services, including those listed in subparagraph 2 above and supervisory, inspection, architectural or engineering activities. P. Limited Warranty Liability means those sums the insured is contractually obligated to pay as Repair Costs under a Home Builder's Limited Warranty issued by the Insured or on its behalf to the purchaser of a Unit or Common Area, but only if the close of escrow on the Unit or Common Area occurs during the Policy Period. Q. Loss means the total sum which the Insured shall become obligated to pay for Damages (including Defense Costs) on account of Bodily Injury, Property Damage and/or Personal Injury and Advertising Injury which is, and/or but for the amount thereof would be, covered under this policy less any salvages or recoveries. R. Mobile Equipment means any of the following types of land vehicles, including any attached machinery or equipment 1. bulldozers,farm machinery,forklifts and other vehicles designed for use principally off public roads; 2. vehicles maintained for use solely on or next to premises you own or rent; 3. vehicles that travel on crawler treads; 4. vehicles, whether self-propelled or not, maintained primarily to provide mobility to permanently mounted: a. power cranes, shovels, loaders, diggers or drills; or b. road construction or resurfacing equipment such as graders, scrapers or rollers; 5. vehicles not described in Paragraph 1, 2, 3 or 4 above that are not self-propelled and are maintained primarily to provide mobility to permanently attached equipment of the following types: a. air compressors, pumps and generators, including spraying, welding, building, cleaning, geophysical exploration, lighting and well servicing equipment; or b. cherry pickers and similar devices used to raise or lower workers; 6. vehicles not described in Paragraph 1, 2, 3 or 4 above maintained primarily for purposes other than the transportation of persons or cargo. However, self-propelled vehicles with the following types of permanently attached equipment are not Mobile Equipment, but will be considered Autos: a. equipment designed primarily for: (i) snow removal; (ii) road maintenance, but not construction or resurfacing; or (iii) street cleaning; b. cherry pickers and similar devices mounted on automobile or truck chassis and used to raise or lower workers; and c. air compressors, pumps and generators, including spraying, welding, building, cleaning, geophysical exploration, lighting and well servicing equipment. 111Page SCOJR General Security Indemnity Company of Arizona (The "Company") Home Offices Adminisbative Offices 2338 W.Royal Palm Road,Suite J One Seaport Plaza,199 Water Street,21 st Floor Phoenix,AZ 85021 New York,New York 10038-3526 U.S.Toll-Free(outside NY)800-326-3299 Telephone No:t(1)212-480-9000 Polkr Nranber 1OF155832-2017-1 , S. Named Insured means: 1. any person or organization designated in Item 1 of the Declarations; 2. any organization in which you maintain an interest of more than fifty percent (50%) as of the effective date of this policy provided that this policy does not apply to any Bodily Injury or Property Damage that occurred or any Personal Injury and Advertising Injury that was caused, by an Occurrence that first commenced before you acquired or formed such organization or after you ceased to maintain an interest of more than fifty percent(50%) in such organization; and 3. any organization, except for a partnership or a joint venture, that you acquire or form during the Policy Period in which you maintain an interest of more than fifty percent(50%) and to which more specific insurance does not apply, provided that: a. this policy does not apply to any Bodily Injury or Property Damage that occurred, or any Personal Injury and Advertising Injury that was caused by an Occurrence that first commenced. before you acquired or formed such organization or after you ceased to maintain an interest of more than fifty percent(50%) in such organization; and b. you give us notice within ninety(90) days of such acquisition or formation of such organization. A partnership or a joint venture that you acquire during the Policy Period and which has Units or Common Areas that may Close Escrow during the policy period, may be added as an Insured only by a written endorsement that we make a part of this policy. We may, at our option, make an additional premium charge for any organization that you acquire or form during the Policy Period consistent with Endorsement 3 as to post-acquisition unitsicommon area that close during the policy period. T. Occurrence means: 1. As respects Bodily Injury, an event or accident, including continuous or repeated exposure to substantially the same general harmful conditions, which results in Bodily Injury neither expected nor intended from the standpoint of the Insured (except to the extent provided in the exception to Exclusion J). In the event of continuing or progressively deteriorating Bodily Injury over any length of time, such damage shall be one Occurrence and such Occurrence shall be deemed to occur only when such damage first commences. 2. As respects Property Damage, an event or accident, including continuous or repeated exposure to substantially the same general harmful conditions. All such exposure to substantially the same general harmful conditions will be deemed to arise out of one Occurrence. 3. As respects Personal Injury and Advertising Injury, an offense arising out of your business that causes Personal Injury and Advertising Injury. All Damages that arise from the same, related or repeated injurious material or act will be deemed to arise out of one Occurrence, regardless of the frequency or repetition thereof, the number and kind of media used and the number of claimants. 121 Page SCOOOR General Security Indemnity Company of Arizona (The "Company") Home Offices Administrative Offices 2338 W.Royal Palm Road,Suite J One Seaport Plaza, 199 Water Street,21 st Floor Phoenbr,AZ 85021 New York,New York 10038-3526 U.S.Toll-Free(outside NY)800-326-3299 Telephone No:+(1)212-480-9000 Polia Number 1OF155832-2017-1 U. Other Insurance means a policy of insurance providing coverage for Damages which are, or but for the amount of Loss arising therefrom, would be, covered in whole or in part by this policy. However, Other Insurance does not include the Self-insured Retention, Scheduled Underlying Insurance, or any policy of insurance specifically purchased to be excess of this policy affording coverage that this policy also affords. V. Personal Injury and Advertising Injury means injury arising out of your business including consequential Bodily Injury arising out of one or more of the following offenses: 1. false arrest, detention or imprisonment; 2. malicious prosecution; 3. the wrongful eviction from, wrongful entry into, or invasion of the right of private occupancy of a room, dwelling or premises that a person occupies, committed by or on behalf of its owner, landlord or lessor; 4. oral or written publication, in any manner, of material that slanders or libels a person or organization, or disparages a person's or organization's goods, products or services; 5. oral or written publication, in any manner, of material that violates a person's right of privacy; 6. the use of another's advertising ideal in your Advertisement; or 7. infringement upon another's copyright, trade dress or slogan in your Advertisement. W. Policy Period means the period of time from the Policy Inception Date shown in Item 2 of the Declarations to the earlier of the Policy Expiration Date shown in Item 2 of the Declarations or the effective date of termination of this policy. X. Pollutants means any solid, liquid, gaseous or thermal irritant or contaminant including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned or reclaimed. Y. Products-Completed Operations Hazard means all Bodily Injury and Property Damage occurring away from premises you own or rent and arising out of Your Product or Your Work except: 1. products that are still in your physical possession; or 2. work that has not yet been completed or abandoned. However, Your Work will be deemed completed at the earliest of the following times: a. when all of the work galled for in your contract has been completed; b. when all of the work to be done at the job site has been completed if your contract calls for work at more than one job site; or c. when that part of the work done at a job site has been put to its intended use by any person or organization other than another contractor or subcontractor working on the same Project. Work that may need service, maintenance, correction, repair or replacement, but which is otherwise complete, will be treated as completed. Products-Completed Operations Hazard includes Limited Warranty Liability. Products-Completed Operations Hazard does not include Bodily Injury or Property Damage arising out of: 1. the transportation of property, unless the injury or damage arises out of a condition in or on a vehicle not owned or operated by you and that condition was created by the loading or unloading of that vehicle by any Insured; or 131 Page JCOOO►` General Security Indemnity Company of Arizona (The "Company") Home Offices Administrative Offices 2338 W.Royal Palm Road,Suite J One Seaport Plaza,199 Water Street,21 st Floor Phoenix,AZ 85021 New York,New York 10038-3526 U.S.Toll-Free(outside NY)800-3263299 Telephone No:+(1)212-480-9000 Polio NumGer 1OF155832-2017-1 2. the existence of tools, uninstalled equipment or abandoned or unused materials. Z. Project means a group of attached or detached residential housing units, including but not limited to townhouses, condominiums and apartments constructed pursuant to a single series of models or plan types with respect to which the Named Insured served as the developer, seller, builder, general contractor and/or Project manager. AA. Property Damage means: 1. physical injury to tangible property, including all resulting Loss of use of that property. All such Loss of use will be deemed to occur at the time of the physical injury that caused it; or 2. Loss of use of tangible property that is not physically injured caused by physical injury to other tangible property. All such Loss of use will be deemed to occur at the time of such physical injury to other tangible property. For the purposes of coverage as respects Limited Warranty Liability only, Property Damage includes a Construction Defect, whether or not such Construction Defect constitutes physical injury to property. For the purposes of this insurance, electronic data is not tangible property. As used in this definition, electronic data means information, facts or programs stored as or on, created or used on, or transmitted to or from computer software, including systems and applications software, hard or floppy disks, CD-ROMS, tapes, drives, cells, data processing devices or any other media which are used with electronically controlled equipment. BB. Repair Costs means the cost to repair or replace or otherwise resolve a Construction Defect. It includes all costs covered by the Home Builders' Limited Warranty. CC. Scheduled Underlying Insurance means: 1. the policy or policies of insurance and limits of insurance listed in the Schedule(s) of Underlying Insurance set forth in Item 4C of the Declarations and forming a part of this policy; and 2. any renewal or replacement of any policy in Paragraph 1 above, provided that such renewal or replacement provides equivalent coverage to and affords limits of insurance equal to or greater than the policy being renewed or replaced. Scheduled Underlying Insurance does not include a policy of insurance specifically purchased to be excess of this policy affording coverage that this policy also affords. DD Self-Insured Retention means: 1. the Each Occurrence Self-Insured Retention,which is the amount applicable to each Occurrence for which the Insured is responsible that is shown in the Self-Insured Retention Schedule referenced in Item 4 of the Declarations;the Each Occurrence Self-Insured Retention shall apply separately for each Occurrence as set forth in such Self-Insured Retention Schedule; and 2. if applicable, the Aggregate Self-Insured Retention, which shall apply as set forth in subsection II.B. EE. Suit means a civil proceeding in which Damages because of Bodily Injury, Property Damage, or Personal Injury or Advertising Injury to which this policy applies are alleged. In addition to a lawsuit, Suit includes: 141Page SOOR General Security Indemnity Company of Arizona (The "Company") Home Offices Administrative Offices 2338 W.Royal Palm Road,Suite J One Seaport Plaza,199 Water Sheet,21st Floor Phoenix,AZ 85021 New York,New York 10038-3526 U.S.Toll-Free(outside NY)800-326-3299 Telephone No:+(1)212A80-9000 Polisy Number 10F155832-2017-1 1. an arbitration proceeding in which such Damages are claimed and to which the Insured must submit or does submit with our consent; or 2. any other alternative dispute resolution proceeding in which such Damages are claimed and to which the Insured submits with our consent. FF. Unit means a home, townhouse, or condominium, built, renovated or converted by the Insured and sold to an unrelated third party. The term "Unit" also includes model homes, show homes and leased homes despite lack of Close of Escrow or transfer of title or recording of deed in the name of an unrelated third party. GG. Your Product means: 1. any goods or products, other than real property, manufactured, sold, handled, distributed or disposed of by: a. you; b. others trading under your name; or c. a person or organization whose business or assets you have acquired; and 2. containers (other than vehicles), materials, parts or equipment furnished in connection with such goods or products. Your Product includes: 1. warranties or representations made at any time with respect to the fitness, quality, durability, performance or use of Your Product; and 2. 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. HH. Your Work means: 1. work or operations performed by you or on your behalf; and 2. materials, parts or equipment furnished in connection with such work or operations. Your Work Includes: 1. warranties or representations made at any time with respect to the fitness, quality, durability, performance or use of Your Work and 2. the providing of or failure to provide warnings or instructions. 151Page SC/JR General Security Indemnity Company of Arizona (The "Company") Home Offices Administrative Offices 2338 W.Royal Palm Road,Suite J One Seaport Plaza,199 Water Street,21st Floor Phoenix,AZ 85021 New York,New York 1003&3526 U.S.Toll-Free(outside NY)800-326-3299 Telephone No:+(1)212-480-9000 Policy Number 1OF155832-2017-1 Yl. EXCLUSIONS A. Aircraft and Watercraft This insurance does not apply to Bodily Injury or Property Damage arising out of the ownership, maintenance, use or entrustment to others of any aircraft or watercraft owned or operated by or rented or loaned to any Insured. Use includes operation and loading and unloading. This exclusion applies even if the claims against any Insured allege negligence or other wrongdoing in the supervision, hiring, employment, training or monitoring of others by that Insured, if the Occurrence which caused the Bodily Injury or Property Damage involved the ownership, maintenance, use or entrustment to others of any aircraft or watercraft that is owned or operated by or rented or loaned to any Insured. This exclusion does not apply to a watercraft you do not own that is less than 51 feet long and not being used to carry persons or property for a charge. 13. Asbestos This insurance does not apply to any liability arising out of: 1. the manufacture of, mining of, use of, sale of, installation of, removal of, distribution of or exposure to asbestos, asbestos containing products or materials, asbestos fibers or asbestos dust; or 2. any obligation of the Insured to indemnify any party because of Damages or any other liability arising out of the manufacture of, mining of, use of, sale of, installation of, removal of, distribution of or exposure to asbestos, asbestos products, asbestos fibers or asbestos dust. C. Chromium Copper Arsenate This insurance does not apply to: 1. any liability arising out of manufacture, installation, use, sale, handling, removal, distribution of; or 2. any Bodily Injury, Property Damage or Personal Injury and Advertising Injury arising out of inhalation, consumption of, or exposure to any chemical or product containing Chromium Copper Arsenate (CCA) or which has the same chemical formulary, or which is generally known in the chemical trade as having a substantially similar formulation, structure, or function by whatever name manufactured, formulated, structured, sold or distributed. D. Contractual Liability This insurance does not apply to Bodily Injury or Property Damage forwhich the Insured is obligated to pay Damages by reason of the assumption of liability in a contract or agreement. This exclusion does not apply to liability for Damages: 1. that the Insured would have in the absence of a contract or agreement; 2. Limited Warranty Liability. 3. Assumed in a contract or agreement that is an Insured Contract, if the Bodily Injury or Property Damage occurs subsequent to the execution of the contract or agreement. Solely for the purposes of liability assumed in an Insured Contract, reasonable attorney fees and necessary litigation expenses incurred by or for a party other than an Insured are deemed to be Damages because of Bodily Injury or Property Damage, provided: 161Page sC/10rZ General Security Indemnity Company of Arizona (The "Company") Home Offices Administrative Offices 2338 W.Royal Palm Road,Suite J One Seaport Plaza,199 Water Street,21 st Floor Phoenix,AZ 85021 New York,New York 10038-3526 U.S.Toll-Free(outside NY)800-326-3299 Telephone No:+(1)212-480-9000 Poli. Number 1OF155832-2017-1 (a) Liability to such party for, or for the cost of, that party's defense has also been assumed in the same Insured Contract; and (b) Such attorney fees and litigation expenses are for defense of that party against a civil or alternative dispute resolution proceeding in which Damages to which this insurance applies are alleged. E. Damage to Impaired Property This insurance does not apply to any Property Damage to Impaired Property or property that has not been physically injured, arising out of: 1. a defect, deficiency, inadequacy or dangerous condition in Your Product or Your Work; or 2. a delay or failure by you or anyone acting on your behalf to perform a contract or agreement in accordance with its terms. This exclusion does not apply to Loss of use of other property arising out of sudden and accidental physical injury to Your Product or Your Work after it has been put to its intended use or to any damage otherwise covered by Limited Warranty Liability. F. Damage to Property This insurance does not apply to any Property Damage to: 1. property you own, rent, or occupy, including any costs or expenses incurred by you, or any other person, organization or entity, for repair, replacement, enhancement, restoration or maintenance of such property for any reason, including prevention of injury to a person or damage to another's property; 2. premises you abandon if the Property Damage arises out of any part of those premises; 3. property loaned to you; 4. personal property in the care, custody or control of the Insured; 5. that particular part of real property on which you or any contractors working directly or indirectly on your behalf are performing operations if the Property Damage arises out of those operations; or 6. that particular part of any property that must be restored, repaired or replaced because Your Work was incorrectly performed on it. Paragraphs 3, 4, 5 and 6 of this exclusion do not apply to liability assumed under a sidetrack agreement. Paragraph 6 of this exclusion does not apply to any Property Damage included in the Products- Completed Operations Hazard (including Warranty Liability). G. Electronic Chatrooms or Bulletin Boards This insurance does not apply to Personal Injury and Advertising Injury arising out of an electronic chatroom or bulletin board the Insured hosts, owns, or over which the Insured exercises control. 171 Page S COO/L General Security Indemnity Company of Arizona (The "Company") Home Offices Administrative Offices 2338 W.Royal Palm Road,Suite J One Seaport Plaza,199 Water Street,21 st Floor Phoenix,AZ 85021 New York,New York 10038-3526 U.S.Toll-Free(outside NY)800-326-3299 Telephone No:+(1)212-480-9000 Policy Number 1OF155832-2017-1 _ H. Employees and Volunteers This insurance does not apply to liability of any employee or volunteer with respect to Bodily Injury or Personal Injury and Advertising Injury: 1. to you, to your partners or members (if you are a partnership or joint venture), to your members (if you are a limited liability company), or to an employee of yours while in the course of his or her employment or performing duties related to the conduct of your business, or to another volunteer of yours while performing duties related to the conduct of your business; 2. to the spouse, child, parent, brother or sister of such injured employee or volunteer as a consequence of subparagraph 1 above; 3. for which there is any obligation to share Damages with or repay someone else who must pay Damages because of the injury described in subparagraphs 1 or 2 above; or 4. arising out of his or her providing or failing to provide professional health care services. I. Employment Practices This insurance does not apply to any liability arising out of: 1. wrongful dismissal, discharge, or termination, including breach of an implied contract; 2. coercion or harassment, including quid pro quo, hostile work environment, or other sexual harassment; 3. discrimination; 4. retaliation, including lockouts; 5. employment related misrepresentations; 6. employment related libel, slander, humiliation, defamation, or invasion of privacy; 7. wrongful failure to employ or promote; 8. wrongful deprivation of career opportunity, wrongful demotion or negligent employee evaluation, including the giving of negative or defamatory statements in connection with an employee reference; 9. wrongful discipline of any your employees or applicants for employment with you; 10. failure to grant tenure to any of your employees; 11. failure to provide or enforce adequate or consistent corporate policies and procedures relating to any employment practice; 12. violation of an individual's civil rights relating to any of the above. This exclusion applies: 1. whether the Insured may be liable as an employer or in any other capacity; and 2. to any obligation to share Damages with or repay someone else who must pay Damages because of the injury. J. Expected or Intended This insurance does not apply to any Bodily Injury or Property Damage expected or intended from the standpoint of the Insured. However, this exclusion does not apply to Bodily Injury or Property Damage resulting from the use of reasonable force to protect persons or property. 181Page SCOO General Security Indemnity Company of Arizona (The "Company") Home Offices Administrative Offices 2338 W.Royal Palm Road,Suite J One Seaport Plaza,199 Water Street,21st Floor Phoenix,AZ 85021 New York,New York 10038-3526 U.S.Toll-Free(outside NY)800-3263299 Telephone No:+(1)2124180-9000 Polia Number 10F155832-2017-1 _ K. Exterior Insulation and Finish Systems This insurance does not apply to Bodily Injury, Property Damage, or Personal Injury and Advertising Injury arising in whole or in part out of the design, manufacture, construction, fabrication, preparation, installation, application, maintenance or repair, including remodeling, service, correction, or replacement of an Exterior Insulation and Finish System(EIFS),synthetic stucco, or any part thereof, including the application or use of paints, conditioners, primers, accessories, flashings, coatings, caulkings or sealants in connection with such a product. This exclusion shall not apply to EI FS or other stucco-based construction whose outer layer is designed to be the water resistive layer and has a designed means of water drainage. L. Fungus(!), Mold(s) and Spore(s) This insurance does not apply to Bodily Injury, Property Damage, Personal or Injury and Advertising Injury or any other Loss, injury, damage, cost or expense, including, but not limited to, Losses, costs or expenses related to, arising from or associated with clean-up, remediation, containment, removal or abatement, caused directly or indirectly, in whole or in part, by: 1. Any Fungus(i), Mold(s), mildew or yeast; or 2. Any Spore(s) or toxins created or produced by or emanating from such Fungus(i), Mold(s), mildew or yeast; or 3. Any substance, vapor, gas, or other emission or organic or inorganic body or substance produced by or arising out of any Fungus(i), Mold(s), mildew or yeast; or 4. Any material, product, building component, building or structure, or any concentration of moisture, water or other liquid within such material, that contains, harbors, nurtures or acts as a medium for any Fungus{i), Mold(s), mildew, yeast, or Spore(s) or toxins emanating therefrom. M. Infringement of Copyright, Patent,Trademark or Trade Secret This insurance does not apply to Personal Injury and Advertising Injury arising out of the infringement of copyright, patent, trademark, trade secret or other intellectual property rights. However,this exclusion does not apply to infringement, in your Advertisement, of copyright,trade dress or slogan. N. Liquor Liability This insurance does not apply to any Bodily Injury or Property Damage for which any Insured may be held liable by reason of: 1. causing or contributing to the intoxication of any person; 2. the furnishing of alcoholic beverages to a person under the legal drinking age or under the influence of alcohol; or 3. any statute, ordinance or regulation relating to the sale, gift, distribution or use of alcoholic beverages. This exclusion applies only if you are in the business of manufacturing, distributing, selling, serving or furnishing alcoholic beverages. 191Page J coon General Security Indemnity Company of Arizona (The "Company") Home Offices Administrative Offices 2338 W.Royal Palm Road,Suite J One Seaport Plaza,199 Water Street,21 st Floor Phoenix,AZ 85021 New York,New York 10038.-3526 U.S.Toll-Free(outside NY)800-326-3299 Telephone No:+(1)212-480-9000 _Polia Number 1OF155832-2017-1 O. Media and Internet Type Businesses This insurance does not apply to Personal Injury and Advertising Injury committed by any Insured whose business is: 1. advertising, broadcasting, publishing or telecasting; 2. designing or determining content of web-sites for others; or 3. an Internet search, access, content or service provider. For the purposes of this exclusion, the placing of frames, borders or links, or advertising, for you or others anywhere on the Internet, is not by itself, considered the business of advertising, broadcasting, publishing or telecasting. P. "No-Fault," "Uninsured Motorist" or"Underinsured Motorist" Laws This insurance does not apply to any obligation of the Insured under any "No-Fault," "Uninsured Motorist" or"Underinsured Motorist" law. Q. Nuclear Liability This insurance does not apply to: 1. any liability: a. with respect to which the Insured is also an Insured under a nuclear energy liability policy issued by the Nuclear Energy Liability-Property Insurance Association, Mutual Atomic Energy Liability Underwriters or the Nuclear Insurance Association of Canada, or would be an Insured under any such policy but for its termination upon exhaustion of its limit of liability; b. resulting from the hazardous properties of nuclear material and with respect to which (1) any person or any organization is required to maintain financial protection pursuant to the Atomic Energy Act of 1954, or any law amendatory thereof, or(2) the Insured is, or had this policy not been available would be, entitled to indemnity from the United States of America or any agency thereof under any agreement entered into by the United States of America or any agency thereof with any person or organization; c. resulting from the hazardous properties of nuclear material if: (i) the nuclear material (1) is at any nuclear facility owned by the Insured or operated by the Insured or on the Insured's behalf or(2) has been discharged or dispensed therefrom; (ii) the nuclear material is contained in spent fuel or waste at any time possessed, handled, used, processed, stored, transported or disposed of by the Insured or on the Insured's behalf; or (iii) the injury or damage arises out of the furnishing by the Insured of services, materials, parts or equipment in connection with the planning, construction, maintenance, operation or use of any nuclear facility, but if such facility is located within the United States of America, its territories or possessions or Canada, this exclusion (iii) applies only to Property Damage to such nuclear facility and any property thereat. 2. As used in this exclusion: a. "hazardous properties" includes radioactive, toxic or explosive properties; b. "nuclear materials" means source material, special nuclear material or byproduct material; c. "source material,""special nuclear material"and"by-product material"have the meanings given them in the Atomic Energy Act of 1954 or any law amendatory thereof; 201Page SOO General Security Indemnity Company of Arizona (The "Company") Home Offices Administrative Offices 2338 W.Royal Palm Road,Suite J One Seaport Plaza,199 Water Street,21st Floor Phoenix,AZ 85021 New York, New York 10038-3526 U.S.Toll-Free(outside NY)800-326-3299 Telephone No:+(1)212-480-9000 Policy Number 10F155832-2017-1 d. "spent fuel" means any fuel element or fuel component, solid or liquid, which has been used or exposed to radiation in a nuclear reactor; e. "waste" means any waste material (1) containing by-product material and (2) resulting from the operation by any person or organization of a nuclear facility included within the definition of nuclear facility below; f. "nuclear facility" means: (i) any nuclear reactor; (ii) any equipment or device designed or used for (1) separating the isotopes of uranium or plutonium, (2) processing or utilizing spent fuel or (3) handling, processing or packaging wastes; (iii) any equipment or device used for the processing, fabricating or alloying of special nuclear material if at any time the total amount of such material in the Insured's custody at the premises where such equipment or device is located consists of or contains more than 25 grams of plutonium or uranium 233 or any combination thereof, or more than 250 grams of uranium 235; or (iv) any structure, basin, excavation, premises or place prepared or used for storage or disposal of waste, and includes the site on which any of the foregoing is located, all operations conducted on such site and all premises used for such operations; g. "nuclear reactor' means any apparatus designed or used to sustain nuclear fission in a self- supporting chain reaction or to contain a critical mass of fissionable material; h. Property Damage includes all forms of radioactive contamination of property. R. Pollution This Insurance does not apply to: 1. any liability arising out of the actual,alleged or threatened discharge,dispersal, seepage, migration, release or escape of Pollutants: a. at or from any premises, site or location that is or was at any time owned or occupied by, or rented or loaned to, any Insured; b. at or from any premises, site or location that is or was at any time used by or for any Insured or others for the handling, storage, disposal, processing or treatment of waste; c. that are or were at any time transported, handled, stored, treated, disposed of, or processed as waste by or for any Insured or any person or organization for whom you may be legally responsible; d. at or from any premises, site or location on which any Insured or any contractors or subcontractors working directly or indirectly on any Insured's behalf are performing operations if the Pollutants are brought on or to the premises, site or location in connection with such operations by such Insured, contractor or subcontractor; e. at or from any premises, site or location on which any Insured or any contractors or subcontractors working directly or indirectly on any Insured's behalf are performing operations if the operations are to test for, monitor, clean up, remove, contain, treat, detoxify or neutralize or in any way respond to or assess the effects of Pollutants; f. that are contained in any property that is: (i) being transported or towed by, handled or handled for movement into, onto or from an Auto covered by Scheduled Underlying Insurance; 21 Page SCOOJR General Security Indemnity Company of Arizona (The "Company") Home Offices Administrative Offices 2338 W.Royal Palm Road,Suite J One Seaport Plaza,199 Water Street,21 st Floor Phoenix,AZ 85021 New York,New York 10038-3526 U.S.Toll-Free(outside NY)800-326-3299 Telephone No:+(1)212-480-9000 Poligr Number 1OF155832-2017-1 _ (ii) otherwise in the course of transit by or on behalf of the Insured; or (iii) being stored, disposed of, treated or processed in or upon an Auto covered by Scheduled Underlying Insurance; g. (i) before the Pollutants or any property in which the Pollutants are contained are moved from the place where they are accepted by the Insured for movement into or onto an Auto covered by Scheduled Underlying Insurance; or (ii) after the Pollutants or any property in which the Pollutants are contained are moved from the Auto covered by Scheduled Underlying Insurance to the place where they are finally delivered, disposed of or abandoned by the Insured; 2. any Loss, cost or expense arising out of any: a. request, demand order or statutory or regulatory requirement that any Insured or others test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to or assess the effects of Pollutants; or b. claim or Suit by or on behalf of a governmental authority for Damages because of testing for, monitoring, cleaning up, removing, containing. treating, detoxifying or neutralizing, or in any way responding to or assessing the effects of Pollutants. The following exceptions to subpart 1 above of this pollution exclusion apply: 1. Products-Completed Operations Hazard: Subparts 1 a through 1 d above of this exclusion do not apply with respect to Bodily Injury or Property Damage included within the Products- Completed Operations Hazard, provided that Your Product or Your Work has not at any time been: a. discarded, dumped, abandoned, thrown away; or b. treated or handled as waste by anyone. 2. Hostile Fire: Subparts la and 1d above of this exclusion do not apply with respect to Bodily Injury or Property Damage arising out of heat, smoke or fumes from a Hostile Fire. 3. Equipment to Heat cool or dehumidify the Building and Contractor/lessee Operations: Subpart la above of this exclusion does not apply to: a. Bodily Injury sustained within a building and caused by smoke, fumes, vapor or soot from equipment used to heat the building; or b. Bodily Injury or Property Damage for which you may be held liable if you are a contractor and the owner or lessee of such premises, site or location has been added to your policy as an additional Insured with respect to your ongoing operations performed for that additional Insured at such premises, site or location, and such premises, site or location is not and never was owned or occupied by, or rented or loaned to, any Insured, other than the additional Insured. 4. Fuels, Lubricants and Other Operating Fluids - Mobile Equipment: Subpart ld above of this exclusion does not apply to: a. Bodily Injury or Property Damage arising out of the escape of fuels, lubricants or other operating fluids that are needed to perform normal electrical, hydraulic or mechanical functions necessary for the operation of Mobile Equipment or its parts if such fuels, lubricants or other operating fluids escape from a vehicle part designed to hold, store or receive them. This exception does not apply if the Bodily Injury or Property Damage arises out of the intentional discharge, dispersal or release of the fuels, lubricants or other operating fluids, or if such fuels, lubricants or other operating fluids are brought on or to the premises, site or location with the 221Page SSR General Security Indemnity Company of Arizona (The "Company") Home Offices Administrative Offices 2338 W.Royal Palm Road,Suite J One Seaport Plaza,199 Water Street,21 st Floor Phoenix,AZ 85021 New York,New York 10038-3526 U.S.Toll-Free(outside NY)800-326-3299 Telephone No:+(1)212-480-9000 P�NumbE 1OF155832-2017-1 - intent that they be discharged, dispersed or released as part of the operations being performed by such Insured contractor or subcontractor; or b. Bodily Injury or Property Damage sustained within a building and caused by the release of gases, fumes or vapors from materials brought into that building in connection with operations being performed by you or on your behalf by a contractor or subcontractor. 5. Fuels, lubricants, Fluids, etc. -Auto: Subpart 1 f above of this exclusion does not apply to fuels, lubricants, fluids, exhaust gases or other similar Pollutants that are needed for or result from the normal electrical. hydraulic or mechanical functioning of an Auto covered by Scheduled Underlying Insurance or Its parts if: a. the Pollutants escape, seep, migrate or are discharged, dispersed or released directly from an Auto part designed by its manufacturer to hold, store, receive or dispose of such Pollutants; and b. the Bodily Injury or Property Damage does not arise out of the operation of any equipment listed in subparts 6b and 6c of the definition of Mobile Equipment. 6. Upset, Overturn or Damage of an Auto: Subpart 1b above of this exclusion does not apply to Occurrences that take place away from premises owned by or rented to an Insured with respect to Pollutants not in or upon an Auto covered by Scheduled Underlying Insurance if: a. the Pollutants or any property in which the Pollutants are contained are upset, overturned or damaged as a result of the maintenance or use of an Auto covered by Scheduled Underlying Insurance; and b. the discharge, dispersal, seepage, migration, release or escape of the Pollutants is caused directly by such upset, overturn or damage. S. Pre-Existing Damages and/or Defects Without limiting the requirements for coverage of any other provisions of this policy, including, without limitation, those of subpart 4 of subsection 1.A, this insurance does not apply to Bodily Injury, Property Damage, or Personal Injury and Advertising Injury arising out of, based on, or involving, the continuation of, during the Policy Period, any pre-existing Damages and/or defects known to the Insured before the effective date of this policy. This exclusion shall apply whether or not the Insured's legal obligation to pay for such pre-existing Damages and/or defects was established before the effective date of this policy. T. Prior Units This insurance does not apply to Bodily Injury, Property Damage, Personal Injury and Advertising Injury included in the Products-Completed Operations Hazard arising out of a Unit, the deed or title to which was recorded in the name of a third party prior to the Policy Inception Date. U. Professional Services This insurance does not apply to Bodily Injury, Property Damage, Personal Injury and Advertising Injury arising out of any professional services performed by or on behalf of the Insured, including but not limited to preparing, approving, or failing to prepare or approve, maps, shop drawings, opinions, reports, surveys, field orders, change orders, or drawings and specifications; supervisory or inspection activities performed as part of any related architectural or engineering work. 231Page SOO/;2 General Security Indemnity Company of Arizona (The "Company") Home offices Administrative Offices 2338 W.Royal Palm Road,Suite J One Seaport Plaza, 199 Water Street,21st Floor Phoenix,AZ 85021 New York,New York 10038-3526 U.S.Toll-Free(outside NY)800-326-3299 Telephone No:+(1)212-480-9000 Policy Number 10F155832-2017-1 Professional services do not include services within construction means, methods, techniques, sequences and procedures employed by you in connection with your operations in your capacity as a construction contractor. V. Recall of Products,Work or Impaired Property This insurance does not apply to Damages claimed for any Loss, cost or expense incurred by you or others for the Loss of use, withdrawal, recall, inspection, repair, replacement, adjustment, removal or disposal of: 1. Your Product; 2. Your Work; or 3. Impaired Property; if such product, work or property is withdrawn or recalled from the market or from use by any person or organization because of a known or suspected defect, deficiency, inadequacy or dangerous condition in it. (For the avoidance of doubt, this exclusion does not apply to coverage as respects Limited Warranty Liability, but the existence of this exception shall not give rise to any inference as to the scope of such coverage. W. Securities This insurance does not apply to any liability arising out of: 1. any violation of any securities law,whether statutory or common law, or any regulation promulgated thereunder; 2. the purchase, sale, offer of sale or solicitation of any security, debt, insurance policy, bank deposit or financial interest or instrument; 3. any representations made at any time in relation to the price or value of any security, debt, insurance policy, bank deposit or financial interest or instrument; or 4. any depreciation or decline in price or value of any security, debt, insurance policy, bank deposit or financial interest or instrument. X. Unauthorized Use of Another's Name or Product This insurance does not apply to Personal Injury and Advertising Injury arising out of the unauthorized use of another's name or product in your e-mail address, domain name or metatag, or any other similar tactics to mislead another's potential customers. Y. Various Personal Injury and Advertising Injury This insurance does not apply to Personal Injury and Advertising Injury: 1. caused by or at the direction of the Insured with the knowledge that the act would violate the rights of another and would inflict Personal Injury and Advertising Injury; 2. arising out of oral, written or electronic publication of material if done by or at the direction of any Insured with knowledge of its falsity; 3. arising out of oral, written or electronic publication of material whose first publication took place before the beginning of the Policy Period; 4. arising out of a criminal act committed by or at the direction of the Insured; 241Page sCOOOr2 General Security Indemnity Company of Arizona (The "Company") Home Offices Administrative Offices 2338 W.Royal Palm Road,Suite J One Seaport Plaza,199 Water St eet,21st Floor Phoenix,AZ 85021 New York,New York 10038-3526 U.S.Toll-Free(outside NY)800-326-3299 Telephone No:+(1)212-480-9000 Policy Number 1OF155832-2017-1 5. arising out of the failure of goods, products or services to conform with any statement of quality or performance made in your Advertisement; 6. arising out of the wrong description of the price of goods, products or services stated in your Advertisement. Z. Various Laws This insurance does not apply to any obligation of the Insured under any of the following: the Employee Retirement Income Security Act of 1974 (including amendments relating to the Consolidated Omnibus Budget Reconciliation Act of 1985), and including any amendment or revision thereto, or any similar common or statutory law of the United States, Canada or any state orjurisdiction anywhere in the world; or any workers' compensation, unemployment compensation or disability benefits law, or under any similar law, except with respect to Endorsement#4., Employer's Liability Endorsement. AA. War This insurance does not apply to any Bodily Injury or Property Damage due to war, whether or not declared, or any act or condition incident to war. War includes civil war, insurrection, rebellion or revolution. This exclusion applies only to liability assumed under a contract or agreement. BB.Lead, Including Lead Paint This insurance does not apply to: 1. any liability arising out of manufacture, installation, use, sale, handling, removal or distribution of; or 2. any Bodily Injury, Property Damage or Personal Injury and Advertising Injury arising out of inhalation, consumption of, or exposure to any chemical, substance, material or product containing lead, including, but not limited to, lead paint or any other lead-containing paint, other surfacing material, plumbing or construction material or product. CC. Silica This insurance does not apply to any liability for any actual or alleged Bodily Injury, including, but not limited to, silicosis or any related disease or condition, actually or allegedly arising out of: 1. the manufacture of, mining of, use of, sale of, installation of, removal of, distribution of or exposure to silica or any chemical, substance, material or product containing silica (collectively "silica") or silica dust; or 2. any obligation of the Insured to indemnify any party because of Damages for any actual or alleged Bodily Injury, including, but not limited to, silicosis or any related disease or condition, actually or allegedly arising out of the manufacture of, mining of, use of, sale of, installation of, removal of, distribution of or exposure to silica or silica dust. 251Page SCIOR General Security Indemnity Company of Arizona (The "Company") Home Offices Administrative Offices 2338 W.Royal Palm Road,Suite J One Seaport Plaza,199 Water Street,21 st Floor Phoenix,AZ 85021 New York,New York 10038-3526 U.S.Toll-Free(outside NY)800-326-3299 Telephone No:+(1)212-480-9000 Polia Number 1OF155832-2017-1 VII. CONDITIONS A. Appeals If the Insured or the Insured's underlying insurers do not appeal a judgment in excess of the Self-Insured Retention or the Scheduled Underlying Insurance, we shall have and may elect to exercise our right to do so. If we appeal, we will be liable for in addition to the applicable Limits of Liability of this policy, all costs, expenses incurred and interest on that amount of any judgment which does not exceed the applicable Limits of Liability of this policy incidental to such an appeal. B. Audit and Maintenance of Records We may audit and examine your books and records as they relate to this policy at any time during the Policy Period and for up to three (3) years after the later of the end of the Policy Period; provided, however, in addition to the foregoing right, as respects any Occurrence covered under this policy, you are required to maintain until you no longer will make any claim for payment as respects such Occurrence, and provide to us, as requested, all material information as respects such Occurrence. C. Bankruptcy or Insolvency Your bankruptcy, insolvency or inability to pay or the bankruptcy, insolvency or inability to pay of any of your underlying insurers will not relieve us from the payment of Loss covered by this policy. But under no circumstances will such bankruptcy, insolvency or inability to pay require us to drop down, replace or assume any obligation under the Self- Insured Retention or Schedule of Underlying Insurance. Notwithstanding the foregoing, in the event that a financial strength rating is issued (1) below A- by A.M. Best Co., or (2) below BBB by Standard & Poor's Ratings Services, Company (hereinafter"Credit Rating Downgrade"), this policy may be canceled by the First Named Insured by mailing written prior notice Company or by surrender of this policy to Company or its authorized agent. If this policy is canceled by the First Named Insured within xx days after such Credit Rating Downgrade, Company shall retain the pro rata proportion of the premium herein. D. Cancellation and Non-Renewal We agree to waive our right to cancel this policy except for the following reasons: Non-payment of premium, material change in exposure or operations, failure to implement reasonable loss control requirements as requested by the Company or his affiliated companies,fraud or material misrepresentation by the Named Insured in obtaining this coverage. If we elect to cancel coverage for any of the reasons cited above we will send, by certified return receipt mail to the first Named Insured at the address appearing on the declarations, a 90 day notice of such cancellation. If we decide not to renew or continue this policy, we will mail or deliver to you written notice at least 90 days before the end of the policy period. 261Page J c000n General Security Indemnity Company of Arizona (The "Company") Home Offices Administrative Offices 2338 W.Royal Palm Road,Suite J One Seaport Plaza,199 Water Street,21 st Floor Phoenix,AZ 85021 New York,New York 10038-3526 U.S.Toll-Free(outside NY)800-326-3299 Telephone No:+(1)212-480-9000 Polity Number �T _ 1OF155832-2017-1 _ E. Change in Control If during the Policy Period: 1. the first Named Insured designated in Item 1 of the Declarations consolidates with or merges into, or sells all or substantially all of its assets to any person or entity; or 2. any person or entity acquires an amount of the outstanding ownership interests representing more than 50% of the voting or designation power for the election of directors of the Named Insured designated in Item 1 of the Declarations, or acquires the voting or designation rights of such an amount of ownership Interests; this policy will continue in full force and effect subject to any modifications to the terms and conditions of this policy that we may require as set forth in a written endorsement that we make to this policy, provided, however, that 90 days prior to the effective date of such transaction, you provide us with full particulars of such transaction and agree to any additional premiums and modifications to the terms of this policy. If prior to the effective date of such transaction, we do not agree that this policy will continue in full force and effect or you do not pay any additional premium that may be required, this policy will be deemed cancelled by you. F. Changes Notice to any agent or knowledge possessed by any agent or any other person will not affect a waiver or change in any part of this policy. This policy can be changed only by a written endorsement that we make to this policy. G. Duties in the Event of an Occurrence, Claim or Suit, Claim Reporting Responsibility 1. You must see to it that we are given notice in writing as soon as practicable of an Occurrence, of which the Vice President of Risk Management or General Counsel has knowledge, that may be reasonably be expected to result in a claim or Suit under this policy. To the extent possible, notice should include: a. how, when and where the Occurrence took place; b. the names and addresses of any injured persons and any witnesses; and c. the nature and location of any injury or damage arising out of the Occurrence. Notice of Occurrence must be explicitly designated as such in writing and must be given as provided in subsection VII.0 and directed to the Company's Claims Department at the address set forth in Item 9(a) of the Declarations and will be deemed given on the date actually received by the Company's Claims Department. Information submitted to the Company's underwriters shall not constitute notice of Occurrence. All material directed to the Company at the address set forth in Item 9(b) of the Declarations shall be deemed to have been submitted to the Company's underwriters(unless otherwise authorized by the Company in writing). 2. Without limiting the requirements of subpart 1 above, you must give us notice, as provided in subpart 1 above, not later than sixty(60)days after you receive notice of any Occurrence that may result in a claim or Suit under this policy involving any of the following: a. a fatality; b. severe bums; 271 Page SCOOOR General Security Indemnity Company of Arizona (The "Company") Home Offices Administrative Offices 2338 W.Royal Palm Road,Suite J One Seaport Plaza,199 Water Street,21 st Floor Phoenix,AZ 85021 New York,New York 10038-3526 U.S.Toll-Free(outside NY)800-326-3299 Telephone No:+(1)212-480-9000 Polia Number 1OF155832-2017-1 c. traumatic brain injury; d. dismemberment or amputation; e. paralysis; f. Loss or impairment of eyesight or hearing; g. a sexual assault or battery, including, but not limited to, rape, molestation, or sexual abuse; or h. any Occurrence, claim or Suit,which in the reasonable opinion of you or any principal of yours may result in a Loss that is equal to or greater than 50% of the Self-Insured Retention or the limit provided by Scheduled Underlying Insurance. 3. You and any other involved Insured must: a. provide, or authorize us to obtain, any information we request; b. fulfill your other obligations under subsection 1. a; c. upon our request. proceed to enforce any right against any person or organization that may be liable to the Insured because of injury or damage to which this insurance may also apply; and d. send us copies of title company or other escrow agent statement evidencing the Unit Close of Escrow for all properties forming a part of or at issue in the Occurrence, claim or Suit. 4. No Insureds will, except at their own cost, voluntarily make a payment, assume any obligation or incur any expense on our behalf, other than for first aid, without our consent, 5. Beginning May 1, 2015 and each 6 months thereafter until all claims are paid and closed, you shall provide a summary bordereau of claims that would be covered by this policy except for the Self- Insured Retention and/or Scheduled Underlying Insurance. Such summary bordereau shall include the following information: a. the number of Home Builder's Limited Warranty claims and aggregate paid and reserve amounts on such claims that is in excess of$10,000,000 each occurrence; b. the number of claims within the products-completed operations hazard and the aggregate paid and reserve amounts on such claims that is in excess of any self-insured retention included in Scheduled Underlying Insurance applicable to such claims; c. the number of claims other than what is reported in a. and b. above and the aggregate paid and reserve amounts on such claims that is in excess of any self-insured retention included in Scheduled Underlying Insurance applicable to such claims. H. Headings The descriptions in the headings of this policy are solely for convenience and form no part of the terms and conditions of coverage. I. Inspection We have the right, but not the obligation, to inspect your premises and operations at any time, Our inspections are not safety inspections. They relate only to the insurability of your premises and operations and the premiums to be charged. We may give you reports on the conditions that we find. We may also recommend changes.We do not, however, undertake to perform the duty of any person or organization to provide for the health or safety of your employees or the public, We do not warrant the health and safety conditions of your premises or operations or represent that your premises or operations comply with laws, regulations, codes or standards. 281Page SCOOOR General Security Indemnity Company of Arizona (The "Company") Home Offices Administrative Offices 2338 W.Royal Palm Road,Suite J One Seaport Plaza,199 Water Street,21 st Floor Phoenix,AZ 85021 New Yak,New York 10036-3526 U.S.Toll-Free(outside NY)800-326-3299 Telephone No:+(1)212-480-9000 Policy Number 10F155832-2017-1 J. Knowledge of Occurrence or Claim Knowledge of an Occurrence, claim or Suit by your agent, servant or employee will not in itself constitute knowledge by you, unless the Vice President of Risk Management or the General Counsel of the Insured will have received notice of such Occurrence claim or Suit from said agent, servant or employee. K. Negotiation in Advance of Arbitration 1. The parties shall attempt in good faith to resolve any dispute arising out of or relating to this Agreement promptly by negotiation between executives who have authority to settle the controversy and who are at a higher level of management than the persons with direct responsibility for administration of this Agreement.Any party may give the other party written notice of any dispute not resolved in the normal course of business. Within 15 days after delivery of the notice, the receiving party shall submit to the other a written response. The notice and response shall include with reasonable particularity (a) a statement of each party's position and a summary of arguments supporting that position, and (b) the name and title of the executive who will represent that party and of any other person who will accompany the executive. Within 30 days after delivery of the notice, the executives of both parties shall meet at a mutually acceptable time and place. 2. Unless otherwise agreed in writing by the negotiating parties,the above-described negotiation shall end at the close of the first meeting of executives described above ("First Meeting"). Such closure shall not preclude continuing or later negotiations, if desired. 3. All offers, promises, conduct and statements, whether oral or written, made in the course of the negotiation by any of the parties, their agents, employees, experts and attorneys are confidential, privileged and inadmissible for any purpose, including impeachment, in arbitration or other proceeding involving the parties, provided that evidence that is otherwise admissible or discoverable shall not be rendered inadmissible or non-discoverable as a result of its use in the negotiation. 4. At no time prior to the First Meeting shall either side initiate an arbitration or litigation related to this Agreement except to pursue a provisional remedy that is authorized by law or by JAMS Rules or by agreement of the parties. However, this limitation is inapplicable to a party if the other party refuses to comply with the requirements of Paragraph 1 above. 5. All applicable statutes of limitation and defenses based upon the passage of time shall be tolled while the procedures specified in Paragraphs 1 and 2 above are pending and for 15 calendar days thereafter. The parties will take such action, if any, required to effectuate such tolling. L. Arbitration If the matter is not resolved by negotiation pursuant to paragraphs K. above, then the matter will proceed to arbitration as set forth below. Any dispute, claim or controversy arising out of or relating to this Agreement or the breach, termination, enforcement, interpretation or validity thereof, including the determination of the scope or applicability of this agreement to arbitrate, shall be determined by arbitration in the State of California before three arbitrators who have experience for commercial liability insurance for contractors. The arbitration shall be administered by JAMS pursuant to its Comprehensive Arbitration Rules and Procedures and in accordance with the Expedited Procedures in those Rules. Judgment on the Award may be entered in any court having jurisdiction. This clause shall not preclude parties from seeking provisional remedies in aid of arbitration from a court of appropriate jurisdiction. 291Page SCOOOR General Security Indemnity Company of Arizona (The "Company") Home offices Administrative Offices 2338 W.Royal Palm Road,Suite J One Seaport Plaza,199 Water Street,21 st Floor Phoenix,AZ 85021 New York,New York 100383526 U.S.Toll-Free(outside NY)800-326-3299 Telephone No:+(1)212-480-9000 Policv Number 1OF155832-2017-1 Insurers shall have collateral estoppel, res judicata or other issue preclusion or estoppel effect against the Company in such arbitration, irrespective of whether or not the Company remained a party to such action or proceeding. M. Law of Construction and Interpretation This policy, and any dispute, controversy or claim arising out of or relating to this policy, shall be governed by and construed in accordance with the internal laws of the State of California, except insofar as such laws: 1. may prohibit payment in respect of punitive, exemplary or multiplied Damages hereunder; or 2. pertain to regulation under the California Insurance Law, or regulations issued by the Insurance Department of the State of California pursuant thereto, applying to insurers doing insurance business,or issuance,delivery or procurement of policies of insurance,within the State of California or as respects risks or Insureds situated in the State of California 3. are inconsistent with any provision of this policy; N. Maintenance of Scheduled Underlying Insurance You agree that during the Policy Period: 1. you will keep Scheduled Underlying Insurance in full force and effect; 2. the terms, definitions, conditions and exclusions of Scheduled Underlying Insurance will not materially change; 3. the total applicable limits of Scheduled Underlying Insurance will not decrease. except for any reduction or exhaustion of applicable limits by payment of Loss; and 4. any renewals or replacements of Scheduled Underlying Insurance will provide equivalent coverage to and afford limits of insurance equal to or greater than the policy being renewed or replaced. If you fail to comply with these requirements, we will be liable only to the same extent that we would have had you fully complied with these requirements. O. Other Insurance This insurance is excess over any primary insurance available to you covering liability for damages arising out of the premises or operations for which you have been added as an additional insured. However, this insurance is primary to and will not seek contribution from any other insurance available to you as an additional insured provided that you have agreed in writing in a contract or agreement that this insurance would be primary and would not seek contribution from any other insurance available to you as an additional insured. P. Premium The first Named Insured designated in Item 1 of the Declarations will be responsible for payment of all premiums when due. The premium for this policy will be computed on the basis set forth in Item 7 of the Declarations. At the beginning of the Policy Period, you must pay us the Advance Premium shown in Item 7 of the Declarations. 301Page SCIAOR General Security Indemnity Company of Arizona (The "Company") Home Offices Administrative Offices 2338 W.Royal Palm Road,Suite J One Seaport Plaza,199 Water Street,21 st Floor Phoenuc,AZ 85021 New York,New York 10038-3526 U.S.Toll-Free(outside NY)800-326-3299 Telephone No:+(1)212-480-9000 Polia Number 1OF155832-2017-1 When this policy expires or if it is cancelled,we will compute the earned premium for the time this policy was in force. If this policy is subject to audit adjustment, the actual exposure base will be used to compute the earned premium. If the earned premium is greater than the Advance Premium, you will promptly pay us the difference. If the earned premium is less than the Advance Premium, we will return the difference to you. Q. Cross Liability In the event of a claim being made by reason of Bodily Injury suffered by an employee of one Insured hereunder for which another Insured hereunder is or may be liable,this policy shall cover such Insured against whom such a claim is made or may be made in the same manner as if separate policies had been issued to each Insured hereunder. Nothing contained herein shall operate to increase the Company's limits of liability as set forth in Item 3 of the Declarations. R. Transfer of Rights of Recovery 1. If any Insured has rights to recover all or part of any payment we have made under this policy, those rights are transferred to us. The Insured must do nothing after Loss to impair these rights and must help us enforce them and we will act in concert with the insured and all other interests in the exercise of such rights of recovery. 2. Any recoveries will be applied as follows: a. any person or organization, including the Insured, that has paid an amount in excess of the applicable Limits of Liability of this policy will be reimbursed first; b. we then will be reimbursed up to the amount we have paid; and lastly, any person or organization including the Insured that has paid an amount over which this policy is excess is entitled to claim the remainder. Expenses incurred in the exercise of rights of recovery will be apportioned among the persons or organizations, including the Insured in the ratio of their respective recoveries as finally settled. If there shall be no recovery in proceedings instituted solely on our initiative, the expense thereof shall be borne by us. 3. If. prior to the time of an Occurrence, you and the insurer of Scheduled Underlying Insurance waive any right of recovery against a specific person or organization for injury or damage as required under an Insured Contract we will also waive any rights we may have against such person or organization. S. Transfer of Your Rights and Duties Your rights and duties under this policy may not be transferred without our written consent. If you die or are legally declared bankrupt your rights and duties will be transferred to your legal representative, but only while acting within the scope of duties as your legal representative. However, notice of cancellation sent to the first Named Insured designated in Item 1 of the Declarations and mailed to the address shown In this policy will be sufficient notice to effect cancellation of this policy. 311Page SC/JR General Security Indemnity Company of Arizona (The "Company") Home Offices Administrative Offices 2336 W.Royal Palm Road,Suite J One Seaport Plaza,199 Water Street,21st Floor Phoenix,AZ 85021 New York,New York 10038-3526 U.S.Toll-Free(outside NY)800-326-3299 Telephone No:+(1)212-480-9000 Policv Number 1OF155832-2017-1 T. Unintentional Failure to Disclose Your failure to disclose all hazards existing as of the inception date of the policy will not prejudice you with respect to the coverage afforded by this policy, provided that any such failure or omission is not intentional. U. When Loss Is Payable We will not make any payment under this policy unless and until the Self-insured Retention or Schedule of Underlying Insurance has been exhausted by the payment of Loss. At such time we will promptly pay on behalf of the Insured the amount of such Loss within the applicable Limits of Liability of this policy. V. Notice All notices under any provision of this policy shall be in writing and given by hand prepaid express courier, airmail or electronic mail properly addressed to the appropriate party and will be deemed as having been effected only upon actual receipt. Notices to any Insured may be given to the Named Insured at the address shown in Item 1 (b) of the Declarations or to such other person as the Named Insured shall designate in Item 6 of the Declarations. Notices to the Company, if given pursuant to subsection VII.G. shall be given at the address set forth in Item 9(a) of the Declarations. All other notices to the Company shall be given at the address set forth in Item 9(b) of the Declarations. __5 March 7, 2018 Pascal J. MADIBA AUTHORIZED REPRESENTATIVE 321 Page SCOOOR General Security Indemnity Company of Arizona (The "Company") Home Offices Administrative Offices 2338 W.Royal Palm Road,Suite J One Seaport Plaza,199 Water Street,21 st Floor Phoenix,AZ 85021 New York,New York 1003&3526 U.S.Toll-Free(outside NY)800-326-3299 Telephone No:+(1)212-480-9000 Policy Number 1OF155832-2017-1 ENDORSEMENT #: BLANKET ADDITIONAL INSURED - PERSON OR ORGANIZATION It is hereby agreed between the Company and the Named Insured as of the Effective Date ("Effective Date") of the Policy that this Policy is hereby amended to include as an additional insured, any person or organization you are required by written contract or permit to include as an additional insured but such coverage is restricted to the coverage and limits specified in such written contract and for liability arising solely from your work either performed by you or on your behalf. Any such written contract must be executed prior to the occurrence of any claim, 'occurrence" or"suit". The extent of coverage and the limits of liability of any such written contract shall not increase the limits of insurance specified in SECTION IV - LIMITS OF LIABILITY or the extent of coverage otherwise specified in the policy. The terms, declarations, insuring agreements, definitions, exclusions and conditions of this policy otherwise remain unchanged. March 7, 2018 Pascal J. MADIBA AUTHORIZED REPRESENTATIVE 331Page S OOR General Security Indemnity Company of Arizona (The "Company") Home Offices Administrative Offices 2338 W.Royal Palm Road,Suite J One Seaport Plaza, 199 Water Street,21st Floor Phoenix,AZ 85021 New York, New York 10038-3526 U.S.Toll-Free(outside NY)800-326-3299 Telephone No:+(1)212-480-9000 Polia Number 1 OF 155832-2017-1 I ENDORSEMENT #: 2 SCHEDULE OF UNDERLYING INSURANCE THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. Effective 12/01/2017 It is agreed that as of the Effective Date of the Policy, Item 4B of the Declarations is amended as follows: Table below to be updated and endorsement modified. Notwithstanding the foregoing, the insurance afforded under this program will sit excess of any other replacement or renewal ro ram offering similar terms and conditions. am 1 anrir .. Om AKp3 Navgat0rs Spewitl S ..nUtSed r-surwm conva i, 1b12IMV LLMW .c 525000 General Lra6+hy-Prar�ses LAI7CGL210465!C 12MIM18 tic A Each Ocaxnv" LiaDlbty AM BeN 4,IXAim t Enosure/sm,are rte- 779 ,-.ow Jq Pr Each OKWrence 1 s2moow FXSt Mercury Insurd xe CMrKri1 S.'?000.000 Gxrrpa ri Pers 6 AQ. R 0170 007 o S 00 Gerwal Llaway- 'A'.ACGL0000063P3502 406(201 7 10 4118201 0 l Yr uacae ErtRAw7 ccurrce 7X H[ms*$LAAWay 0,if FAG•1de0 per carren AM Best A-Xb aaxxe 0a7ral T27 war My a. YM St3n Inaererlti S E!v s rkws ACC*Wt EA7s 51 000 0010 LlabW CwVanY s lYnl Wooers'Compensawn 10000019M 08131.2017 to • 1 WA 08131!2018 ow a Mr r AM Best A-XV Ex.Sbd CA:/NGCS I 087/041 Automobile LradNY Goffowi SlSIPC.A083g1717 0awlr2ols UalAq 51000000 GSL WA 0&31!2010 L1ab1 04 Repubic Inslsance Eon tJcL OMM $1,000000 Company FRON7E0 M`VZY3115H6 I2A1R017 to PdmiA4',1'!SF>za 51.000000 General Lu&l ty.Front 12A12018 AM Best A XI Erposwe{PMRCW DW.W 42 10.684 UM41) Arwnl Greer A. $ :4 067 000 Amn9 C: 5241200 Apo110 Hrscor Auontsl• wess Bodily Injury Buydo— CSIJSA 17GM25 12mirIO17,0 adr i1M SRt) 12101!2018 ATl1iRa1 A: t OCtI 000 $1 000.000 AM Best A XV ".Ww1VX 1 Uraerrymg COserage: AL $1M EL s1M151M161M 341 Page S C<)fz General Security Indemnity Company of Arizona (The "Company") Home Offices Administrative Offices 2338 W.Royal Palm Road,Suite J One Seaport Plaza,199 Water Street,21st Floor Phoenix,AZ 85021 New York,New York 10038-3526 U.S.Toll-Free(outside NY)800-326-3299 Telephone No:+(1)212-480-9000 Polixv Number 1OF155832-2017-1 All other terms, declarations, insuring agreements, definitions, exclusions and conditions of this Policy otherwise remain unchanged. March 7, 2018 Pascal J. MADIBA AUTHORIZED REPRESENTATIVE 351 Page SOOR General Security Indemnity Company of Arizona (The«�mpany") Home Offices Administrative Omen 2338 W.Royal Palm Road,Suite J one Seaport Plaza,199 Water Street,21st Floor Piioeribr,AZ 85021 New York,New York 1003835'L6 U.S.Toll-Free(outside NY)800-3263299 TeWwrie No.+(1)21248G-900,0 Poli Nuriber 1OF155832-2017-1 ENDORSEMENT#: 3 Premium Adjustment Endorsement THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. Effective 12/01/2017 361Pa JLC General Security Indemnity Company of Arizona (The "Company") Home Offices Administrative Offices 2338 W.Royal Palm Road,Suite J One Seaport Plaza, 199 Water Street,21st Floor Phoenix,AZ 85021 New York,New York 10038-3526 U.S.Toll-Free(outside NY)8003263299 Telephone No:+(1)212-480-9000 Policv Number 1 OF155832-2017-1 All other terms, declarations, insuring agreements, definitions, exclusions and conditions of this Policy otherwise remain unchanged. March 7, 2018 Pascal J. MADIBA AUTHORIZED REPRESENTATIVE 371Page SCOOR General Security Indemnity Company of Arizona (The "Company") Home Offices Administrative Offices 2338 W.Royal Palm Road,Suite J One Seaport Plaza,199 Water Street,21 st Floor Phoenix,AZ 85021 New York,New York 10038-3526 U.S.Toll-Free(outside NY)800-326-3299 Telephone No:+(1)212-480-9000 Policy Number 1OF155832-2017-1 _ ENDORSEMENT#: 4 Employers Liability Endorsement THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. Effective 12/01/2017 Subject to all the retentions, limitations, terms, conditions and exclusions of this Policy, the term 'Damages' includes Employers Liability. 'Employers Liability' means liability for Bodily Injury or Property damage as provided for under the Federal Employers Liability Act (as may be amended), any workers' compensation, unemployment compensation or disability benefits law, or under any similar law. It is further agreed that Exclusion H, Employees and Volunteers, is hereby deleted in its entirety. All other terms, declarations, insuring agreements, definitions, exclusions and conditions of this Policy otherwise remain unchanged. _ar_� W March 7, 2018 Pascal J. MADIBA AUTHORIZED REPRESENTATIVE 381Page sc000n General Security Indemnity Company of Arizona (The "Company") Home Offices Administrative Offices 2338 W.Royal Palm Road,Suite J One Seaport Plaza,199 Water Street,21 st Floor Phoenix,AZ 85021 New York,New York 1003&3526 U.S.Toll-Free(outside NY)800-326-3299 Telephone No:+(1)212-480-9000 Poli Nranber 10F155832-2017-1 ENDORSEMENT#: 5 Automobile Liability Endorsement THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. Effective 12/0112017 Subject to all the retentions, limitations, terms, conditions and exclusions of this Policy, the term 'Damages' includes Automobile Liability. Definition. 'Auto Liability' means liability arising out of Bodily Injury or Property Damage caused by operation or other movement of an Auto. All other terms, declarations, insuring agreements, definitions, exclusions and conditions of this Policy otherwise remain unchanged. March 7, 2018 Pascal J. MADIBA AUTHORIZED REPRESENTATIVE 391Page J CIOO/Z General Security Indemnity Company of Arizona (The "Company") Home Offices Administrative Offices 2338 W.Royal Palm Road,Suite J One Seaport Plaza,199 Water Street,21st Floor Phoenix,AZ 85021 New York,New York 10038-3526 U.S.Toll-Free(outside NY)800-326-3299 Telephone No:+(1)212-480-9000 Policy Number 1OF155832-2017-1 ENDORSEMENT #: 6 Claims Cooperation and Audit Endorsement THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. Effective 12101/2017 The Named Insured and the Company hereby agree as follows: 1. Claims Cooperation With respect to claims investigation, evaluation, adjustment, handling or settlement, the Company shall have any and all rights of the Named Insured under this insurance policy as respects notice of claim(s) or facts or circumstances which may develop into claims, and as respects assistance and cooperation of the Named Insured, and as respects inspection and investigation and access to information, records and documents. The Named Insured shall: a. immediately transmit to the Company any and all notices of claim(s) received under this insurance policy, b. immediately transmit to the Company any and all notices of facts or circumstances which may develop into claim(s) under this insurance policy that are received from any of its primary or excess insurer or from any other source. c. cooperate fully with the Company, and shall afford and provide the Company with such assistance as may reasonably be necessary to the Company, in the Company's investigation, evaluation, handling, adjustment or settlement of any claim(s) made or submitted on or under this insurance policy. d. execute such documents and shall undertake such actions as may reasonably be necessary to cooperate with and render assistance to the Company in the Company's investigation, evaluation, handling, adjustment or settlement of any claim(s) made or submitted on or under this insurance policy 401Page SCOOOR General Security Indemnity Company of Arizona (The "Company") Home Offices Administrative Offices 2338 W.Royal Palm Road,Suite J One Seaport Plaza,199 Water Street,21st Floor Phoenix,AZ 85021 New York,New York 10038-3526 U.S.Toll-Free(outside NY)800-326-3299 Telephone No:+(1)212-480-9000 Policy Number 10F155832-2017-1 2. Claims Audit(s) With respect to claims audits, the Named Insured and the Company agree as follows: a) The Named Insured will provide the summary claims bordereau to the Company in a format agreed upon by the Named Insured, and the Company and in accordance with paragraph 5. Of Condition G. of this policy. b) Three (3) months prior the renewal date a joint audit will be conducted by the Named Insured, the Company and any Third Party Administrator. The purpose of this joint audit will be to agree on the actual losses and expenses figures and their potential trends. All other terms, declarations, insuring agreements, definitions, exclusions and conditions of this Policy otherwise remain unchanged. 7i W March 7, 2018 Pascal J. MADIBA AUTHORIZED REPRESENTATIVE 411 Page SCOOOR General Security Indemnity Company of Arizona (The "Company") Home Offices Administrative Offices 2338 W.Royal Palm Road,Suite J One Seaport Plaza,199 Water Street,21st Floor Phoenix,AZ 85021 New York,New York 10038-3526 U.S.Toll-Free(outside NY)800-326-3299 Telephone No:+(1)212-480-9000 Polig Number 1OF155832-2017-1 ENDORSEMENT#: 7 Insuring Agreement Endorsement THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. Effective 12/0112017 The Named Insured and the Company hereby agree as follows: For the purposes of the Insuring Agreement, Section I.A.2 and the Definitions, Section V.J. (Home Builder's Limited Warranty or Warranty) and Section V.P. (Limited Warranty Liability), to the extent that a Common Area does not have a deed or transfer of title to a third party other than the Insured recorded, the requirement for recording of the deed or title or Close of Escrow during the Policy Period shall be deemed satisfied: (a) For Common Areas which service a single Unit, when the Close of Escrow of the Unit occurs during the Policy Period; (b) For Common Areas which service more than one Unit, when the Close of Escrow for the first Unit serviced by that Common Area occurs during the Policy Period, or (c) Notwithstanding the above, for Clubhouses, outbuildings, basins, roadways, common sidewalks or other improvements, or part of a Unit or a structure/building containing Units, (1) when the Certificate of Occupancy is issued during the Policy Period, or (2) if no Certificate of Occupancy is issued, when the Common Area is first put to use during the Policy Period. All other terms, declarations, insuring agreements, definitions, exclusions and conditions of this Policy otherwise remain unchanged. March 7, 2018 Pascal J. MADIBA AUTHORIZED REPRESENTATIVE 421Page JCOOOR General Security Indemnity Company of Arizona (The "Company") Home Offices Administrative Offices 2338 W.Royal Palm Road,Suite J One Seaport Plaza,199 Water Street,21st Floor Phoenix,AZ 85021 New York,New York 10038-3526 U.S.Toll-Free(outside NY)800-326-3299 Telephone No:+(1)212-480-9000 Policy Number 10F155832-2017-1 ENDORSEMENT#: J� Exclusion of Certified and Other Acts of Terrorism and Punitive Damages THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. Effective 12/0112017 I. Definitions "We, "us," "our" and "insurer" means the insurance company issuing the policy to which this endorsement is attached, as listed in the declarations to the policy. "You" means the insured listed in the declarations to this policy. "Certified act of terrorism" means any act that is certified by the Secretary of the Treasury, in concurrence with the Secretary of State and the Attorney General of the United States, to be an act of terrorism according to the U.S. federal Terrorism Risk Insurance Act ("TRIA") and any subsequent federal law modifying TRIA. The criteria contained in TRIA for a "certified act of terrorism" include the following: a. The act resulted in insured losses in excess of$5 million in the aggregate, that are attributable to all types of insurance that is subject to the TRIA; and b. The act is a violent act or an act that is dangerous to human life, property or infrastructure and is committed by an individual or individuals as part of an effort to coerce the civilian population of the United States or to influence the policy or affect the conduct of the United States Government by coercion. "Other act of terrorism" means a violent act or an act that is dangerous to human life, property or infrastructure that is committed by or for any individual, individuals, corporation, partnership and that appears to be part of an effort to coerce a civilian population or to influence the policy or affect the conduct of any government by coercion, and the act is not certified as a terrorist act pursuant to TRIA or any subsequent federal law modifying TRIA. II. Exclusion of Certified Act of Terrorism and Other Act of Terrorism This policy does not apply to any bodily injury, property damage, personal injury, advertising injury, loss, damage, cost, claim or suit, expense, or any other demand for money under the policy to which this endorsement is attached, or any underlying insurance, that is caused by, exacerbated by or which arises, directly or indirectly, out of a "certified act of terrorism" or an "other act of terrorism," 431Page SOO General Security Indemnity Company of Arizona (The "Company") Home Offices Administrative Offices 2338 W.Royal Palm Road,Suite J One Seaport Plaza,199 Water Street,21 st Floor Phoenix,AZ 85021 New York,New York 10038-3526 U.S.Toll-Free(outside NY)800-326-3299 Telephone No:+(1)212-480-9000 Policy Number 1OF155832-2017-1 I ENDORSEMENT#: 18 1 continued III. Exclusion of Certain Actions in Relation to a Certified Act of Terrorism and an Other Act of Terrorism This policy does not apply to loss, damage, cost or expense of any nature directly or indirectly caused by, resulting from or in connection with any action taken in preventing or retaliating against a "certified act of terrorism" or an "other act of terrorism." IV. Exclusion of Punitive and Exemplary Damages This policy does not cover damages arising, directly or indirectly, out of a"certified act of terrorism" or an "other act of terrorism" that are awarded as punitive or exemplary damages. V. No Coverage Implied The terms and conditions of this policy shall always apply, and the limitations of any terrorism exclusion or exceptions to such terrorism exclusion, or the inapplicability or omission of a terrorism exclusion, shall not serve to create coverage for any loss which would otherwise be excluded under this policy, such as losses excluded by the Nuclear Hazard Exclusion or the War And Military Action Exclusion. All other terms, declarations, insuring agreements, definitions, exclusions and conditions of this Policy otherwise remain unchanged. March 7, 2018 Pascal J. MADIBA AUTHORIZED REPRESENTATIVE 441Page