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02-1105_JAIN, INDER / SANJIV_License Agreement1] RECORDING REQUESTED BY: City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92675 AND WHEN RECORDED, MAIL TO: Margaret R. Monahan, City Clerk City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92675 City of San Juan Capistrano Recorded in Official Records, County of Orange Tom Daly, Clerk -Recorder 111111111111III 111111II11111111111111111111111111111111127.00 2004000093220 03:52pm 02105104 102 122 Al2 8 0.00 0.00 0.00 0.00 21.00 0.00 0.00 0.00 ' This Space for Recorder's Use Only Title of Document: License Agreement - APN 650-503-02 11 RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: City of San Juan Capistrano Office of the City Clerk 32400 Paseo Adelanto San Juan Capistrano, CA 92675 0 Project Location: 30481 Marbella Vista Drive, Lot 104, Tract 12954 LICENSE AGREEMENT Assessor's Parcel No. 650-603-02 THIS LICENSE AGREEMENT is made this 5`h day of November, 2002, by and between the CITY OF SAN JUAN CAPISTRANO, hereinafter referred to as "Licensor' and Inder Jain and Sanjiv Jain, hereinafter referred to as "Licensee". Licensor and Licensee mutually resolve as follows: Grant of License. Licensor hereby grants to Licensee a license right to use a portion of an existing storm drain easement for the purpose of placing and maintaining wall improvements and a stairway, at their property located at 30481 Marbella Vista Drive, located within the City of San Juan Capistrano, and more particularly described in Exhibit "A", attached hereto. The location of the improvements are set forth in Exhibit "B", attached hereto. Licensee will place the improvements under the direction of the Licensor's Director of Engineering and Building in the existing storm drain easement located on Lot 104, Tract 12954. 2. Hold Harmless. Licensee agrees to save and defend the Licensor, its elected and appointed officials, agents and employees harmless from and against any and all injuries to and deaths of persons and injuries to property or other interests and all claims, demands, costs, loss, damage, and liability, arising out of the performance of Licensee's rights and obligations under this Agreement. Licensee shall maintain in effect a policy of comprehensive general liability or commercial general liability insurance in which the limits of liability shall not be less than One Million Dollars ($1,000,000.00). Licensor shall be named as an additional insured on such policy and an endorsement shall be provided to Licensor proving that said insurance coverage is in place. ATTACHMENT The foregoing indemnification and insurance obligations will terminate when the retaining wall, stairway improvements and all related appurtenances are properly removed from the storm drain easement located on Lot 104, Tract 12954 to the satisfaction of the City Engineer. 3. Responsibility of Licensee to Maintain. Repair. Remove and/or Relocate Private Improvements. Licensee has requested and the Licensor by execution of this Agreement allows the Licensee, at Licensee's sole expense, to construct and maintain private retaining wall and stairway improvements in the public storm drain easement located on their property (Lot 104, Tract 12954). Licensee acknowledges that the easement, in which the private retaining wall and stairway improvements will be placed, contains a public storm drain which may need to be accessed by the City for maintenance and/or repair. Any costs to repair, remove and/or relocate said private improvements occasioned by the above shall be borne by the Licensee. Prior to the issuance of construction permits, private improvements found to be in conflict with existing utility facilities or systems shall be redesigned, or utilities shall be relocated, subject to the approval of the specific agency/utility company, at the expense of the Licensee. Licensee further acknowledges if, during the course of construction and/or maintenance of the private improvements by the Licensee, any of the facility owners' equipment is damaged, the cost to repair and/or replace said equipment shall be borne by the Licensee. The Licensor reserves the right to terminate this License Agreement immediately if the Licensee fails to maintain said private retaining wall improvements in the public storm drain easement located on Lot 104, Tract 12954, to the point that the Licensor believes this placement to be detrimental to the public health, safety and welfare. In the event of the termination of this License Agreement, all costs to remove the retaining wall improvements shall be born by the Licensee. 4. Successors in Interest. The License Agreement shall inure to and be binding on the heirs, successors, executors, administrators, and assignees of the Licensee. Term. This License Agreement shall continue in full force and effect, subject to paragraph —2— 0 0 4, unless terminated by the Licensee or Licensor upon 90 days written notice; or, shall be terminated on 10 days notice if Licensee fails to adhere to any conditions of this Agreement. Upon termination, Licencee shall restore the easement to its original condition to the satisfaction of the City Engineer. DATED this 5`h day of November, 2002, at San Juan Capistrano. LICENSORS BY: INDER JAIN BY: SANJIV JAIN (Attach Notary Acknowledgment) —3— CITY OF SAN JUAN CAPISTRANO AN. CITY CLERK APFSROVED AS TO FORM: CIT TORNEY 0 0 THE LAND REFERRED TO IN THIS AGREEMENT IS SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF ORANGE, CITY OF SAN JUAN CAPISTRANO, AND IS FURTHER DESCRIBED AS: LOT 104, TRACT 12954, RECORDED AS DOCUMENT 88-088244, Book 597, PAGE 23 OF 34. o O N,O -0 O c� 5xZ ' 1 1 LOT 103 LOT 105 GP 5 �O O� LOT 104 Q�°e / LEGEND VIA EXISTING STORM DRAIN EASEMENT EXHIBIT "A" �d11�j j 7�rj i EXHIBIT B CALIFORNIA ALL-PURPOSACKNOWLEDGMENT • State of County of On X04- before me, Dale n 1 personally ❑ personally known to me – OR – MARY J. MILLER F CoMM...1240236 m (J NOTARY PUBLIGCALIFORNIA 1 m ORANGECOUNTY [a) My Term Exp. Nov. 19, 2003 Tine of Office( (e.g.. to me on the basis of satisf ctory evidence to be the person(s) whose name(s) isubscribed to the within instrument and acknowledge me that he/she executed the same in h!�i"rlllbair4uthorizecl capacity(ies), and that by his/her ei 'gnature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and o icial seal. Signature of Notary Pubfie OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: Document Date: Signer(s) Other Than Named Above: Capacity(les) Claimed by Signer(s) Signer's Name: ■ Individual Corporate Officer Title(s): Partner — ❑ Limited ❑ General Attomey-in-Fact Trustee Guardian or Conservator Other: Signer Is Representing: RIGHT THUh1RPRINT OF SIGNER Signer's Name: d IM Number of Pages: Individual Corporate Officer Title(s): Partner — ❑ Limited ❑ General Attorney -in -Fact Trustee Guardian or Conservator Other: Signer is Representing: RIGHT THUGUPR INT OF SIGdER 0 Jeff, Naeonaf No" AaaedadM • OM RammakAve., P.O. Box 71"• Canoga Park. CA 91] 71" Prod. W. 5907 Reolder Call Tdl-Free 1-00047048V PUBLIC AGENCY FORM OF ACKNOWLEDGEMENT State of California ) County of Orange ) ss. City of San Juan Capistrano ) (Gov't Code 40814 & Civil Code 118 1) On November 5, 2002 before me, Margaret R. Monahan, City Clerk, personally appeared Diane Bathgate, personally known to me to be the person whose name is subscribed to the within instrument and acknowledged to me that she executed the same in her authorized capacity, and that by her signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. WITNESS my hand and official seal. (2- R. Monahan, City Clerk OPTIONAL Capacity Claimed by Signers Description of Attached Document Mayor License Agreement APN 650-603-02 Title or Type of Document Title 5 plus acknowledgements Signers are Representing Number of rages City of San Juan Capistrano November 5, 2002 Date of Document hider Jain & Sanjiv Jain Signer(s) Other Than Named Above 32400 PASEO ADELANTO SAN JUAN CAPISTRANO, CA 92675 (949) 493-1171 (949) 493.1053 FAX www.sanjuancapistrano.org January 23, 2004 Jtww �, • IR[a AAXRR1f0 FS1AAlI5Xf4 1 1961 1776 • 0 D— RI m Clerk -Recorder's Office County of Orange m P.O. Box 238 m Santa Ana, California 92701 ,� Attention: Norma Grijalva CI Re: License Agreement - APN 650-503-02 CI MT Iv SENT VIA CERTIFIED MAIL a 0 0 The noted document is enclosed for recording: T- i Postage Certified Fee Return Receipt Fee (Endorsement Required) Restricted Delivery Fee (Endomement Required) Tata) Postage 8 Fees MEMBERS OF THE CITY COUNCIL CITY MANAGER DIANE L. BATHGATE JOHN S. GELFF WYATT HART JOE SOTO DAVID M. SWERDUH DAVE ADAMS osimark \/ Here Please charge the recording fee to the City of San Juan Capistrano (City Clerk's Office). When placed of record, please return the recorded document to this office. A duplicate copy of this letter is enclosed. Please stamp Document Number and date of recording on the duplicate letter and return it to this office in the enclosed, stamped, self-addressed envelope at your earliest convenience. Thank you for your assistance. Very truly yours R. Monahan Clerk Sam Shoucair, Senior Engineer William M. Huber, Engineering and Building Director San Juan Capistrano: Preserving the Past to Enhance the Future 00 0• 15. LICENSE AGREEMENT APPROVED WITH INDER & SANJIV JAIN FOR PLACEMENT OF IMPROVEMENTS WITHIN A STORM DRAIN PUBLIC EASEMENT; MAYOR AUTHORIZED TO EXECUTE THE AGREEMENT; AND, CITY CLERK AUTHORIZED TO FORWARD THE LICENSE AGREEMENT TO THE ORANGE COUNTY RECORDER FOR RECORDATION. (60 0) 16. MEMORANDUM OF UNDERSTANDING APPROVED FOR \\ FUNDING THE SERVICES OF KORVE ENGINEERING BETWEEN THE CITIES OF SAN JUAN CAPISTRANO, DANA POINT AND SAN CLEMENTE;AND, MAYORAUTHORIZED TO SIGN THE MEMORANDUM OF UNDERSTANDING. (600.30) 17. PERSONAL SERVICES AGREEMENT APPROVED WITH KORVE ENGINEERING FOR DOUBLE TRACKING ASSISTANCE; AND, $25,000 APPROPRIATED FROM THE GENERAL FUND RESERVES TO FUND THE INITIAL PORTION OF THE CITY'S SHARE OF THE ENGINEERING SERVICES TO ACCOUNT 01-62118- 4400, ENGINEERING AND BUILDING ADMINISTRATION. (600.30) PUBLIC HEARINGS: None RECESS AND RECONVENE Council recessed at 7:28 p.m. to convene to the San Juan Capistrano Community Redevelopment Agency, Capistrano Valley Water District, and the San Juan Capistrano Sewer Maintenance District No. 1 meetings and reconvened at 7:30 p.m. ADMINISTRATIVE ITEMS H1. COMMUNITY SERVICES DIRECTOR RENAMING THE MINI PARK TO VETERANS PARK APPROVED, CITY FUNDS ALLOCATED TO ACQUIRE NEW PARK SIGNAGE; AND, DELETION OF THE WORD "VETERANS" FROM THE DESCANSO VETERANS PARK NAME APPROVED. (920.40) Project Description: The City received a request from V.F.W. Commander Les Blair to rename the downtown Mini Park to "Veterans Park." Staff recommends the name change in addition to allocation of City funds to assist with acquiring new park signage. Written Communication: Report dated November 5, 2002, by Al King, Jr., Community Services Director City Council Minutes 5 11-5-02 0 11/5/2002 D15 AGENDA ITEM TO: George S. Scarborough, City Manager FROM: William M. Huber, Director of Engineering and Building SUBJECT: Consideration of a License Agreement with Inder & Sanjiv Jain for placement of Improvements within a Public Easement, 30481 Marbella Vista Drive (Tract 12954, Lot 104). By motion: Approve the License Agreement with Inder & Sanjiv Jain for placement of Improvements within a storm drain Public Easement and authorizethe Mayor to execute the Agreement. 2. Authorize the City Clerk to forward the License Agreement to the Orange County Recorder for Recordation. SITUATION A. Summary and Recommendation The subject property owners/applicants, Inder & Sanjiv Jain, have requested to enter into a licence agreement with the City for permission to construct retaining walls and a stairway within an existing public storm drain and access easement located on their property (Lot No. 104, Tract 12954). The proposed improvements will not negatively affect the integrity nor maintenance of the existing storm drain facility. The applicants shall be required to obtain all necessary construction and encroachment permits prior to construction of improvements. With the exclusion of the existing public storm drain pipe, the burden of any repairs to all proposed improvements is placed on the property owners. The License Agreement also includes a comprehensive indemnification section that holds the City harmless for any and all private construction related activities within the public storm drain easement. Staff recommends the City Council authorize the Mayor and City Clerk to execute the License Agreement. FOR CITY COUNCIL AGENDA --I' " AGENDA ITEM B. Background 6'Z 1: November 5, 2002 During construction of storm drain improvements for Tract 12954, a public storm drain line, traversing Lot 104 was constructed to connect an inlet structure, located behind Lot 104, with the main storm drain line which runs in front of the property, in Marbella Vista Drive. In order to build a new residential home on Lot 104 and to provide an access road to the above mentioned existing inlet structure behind Lot 104, the property owners have submitted a site plan which proposes to place certain necessitated retaining walls and a stairway within the existing storm drain easement. However, these improvements will be located in a manner that would not impact the existing storm drain system and would improve the maintenance accessibility to the inlet structure. With the consideration of the situation noted above, Staff recommends City Council authorize the Mayor and City Clerk to execute the License Agreement. COMMISSION/BOARD REVIEW, RECOMMENDATIONS None FINANCIAL CONSIDERATIONS None, all costs forthe preparation of the License Agreement and recording fees will be borne by the applicants. NOTIFICATION Inder Jain and Sanjiv Jain ALTERNATE ACTIONS Approve the License Agreement with Inder & Sanjiv Jain for placement of Improvements within a storm drain Public Easement and authorize the Mayor to execute the Agreement. b. Authorize the City Clerk to forward the License Agreement to the Orange County Recorder for Recordation. Do not approve the License Agreement. 3. Refer to Staff for additional information. 0 0 AGENDA ITEM -3- November 5, 2002 RECOMMENDATION By motion: Approve the License Agreement with Inder & Sanjiv Jain for placement of Improvements within a storm drain Public Easement and authorize the Mayor to execute the Agreement. 2. Authorize the City Clerk to forward the License Agreement to the Orange County Recorder for Recordation. Respectfully submitted �i� l� William M. Huber, am ucair, Director of Engineering and Building roject Manager W MH/SS/CDC Attachments: 1. License Agreement Exhibit "A" Exhibit "B" 2. Location Map CAMyFiles\Agreement\license AgreementsWarbella-Lot 104-Jain.wpd 0 RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: City of San Juan Capistrano Office of the City Clerk 32400 Paseo Adelanto San Juan Capistrano, CA 92675 Project Location: 30481 Marbella Vista Drive, Lot 104, Tract 12954 LICENSE AGREEMENT Assessor's Parcel No. 650-603-02 THIS LICENSE AGREEMENT is made this 5`h day of November, 2002, by and between the CITY OF SAN JUAN CAPISTRANO, hereinafter referred to as "Licensor" and Inder Jain and Sanjiv Jain, hereinafter referred to as "Licensee". Licensor and Licensee mutually resolve as follows: Grant of License. Licensor hereby grants to Licensee a license right to use a portion of an existing storm drain easement for the purpose of placing and maintaining wall improvements and a stairway, at their property located at 30481 Marbella Vista Drive, located within the City of San Juan Capistrano, and more particularly described in Exhibit "A", attached hereto. The location of the improvements are set forth in Exhibit "B", attached hereto. Licensee will place the improvements under the direction of the Licensor's Director of Engineering and Building in the existing storm drain easement located on Lot 104, Tract 12954. 2. Hold Harmless. Licensee agrees to save and defend the Licensor, its elected and appointed officials, agents and employees harmless from and against any and all injuries to and deaths of persons and injuries to property or other interests and all claims, demands, costs, loss, damage, and liability, arising out of the performance of Licensee's rights and obligations under this Agreement. Licensee shall maintain in effect a policy of comprehensive general liability or commercial general liability insurance in which the limits of liability shall not be less than One Million Dollars ($1,000,000.00). Licensor shall be named as an additional insured on such policy and an endorsement shall be provided to Licensor proving that said insurance coverage is in place. —t— ATTACHMENTI The foregoing indemnification and insurance obligations will terminate when the retaining wall, stairway improvements and all related appurtenances are properly removed from the storm drain easement located on Lot 104, Tract 12954 to the satisfaction of the City Engineer. 3. Responsibility of Licensee to Maintain. Repair, Remove and/or Relocate Private Improvements. Licensee has requested and the Licensor by execution of this Agreement allows the Licensee, at Licensee's sole expense, to construct and maintain private retaining wall and stairway improvements in the public storm drain easement located on their property (Lot 104, Tract 12954). Licensee acknowledges that the easement, in which the private retaining wall and stairway improvements will be placed, contains a public storm drain which may need to be accessed by the City for maintenance and/or repair. Any costs to repair, remove and/or relocate said private improvements occasioned by the above shall be borne by the Licensee. Prior to the issuance of construction permits, private improvements found to be in conflict with existing utility facilities or systems shall be redesigned, or utilities shall be relocated, subject to the approval of the specific agency/utility company, at the expense of the Licensee. Licensee further acknowledges if, during the course of construction and/or maintenance of the private improvements by the Licensee, any of the facility owners' equipment is damaged, the cost to repair and/or replace said equipment shall be borne by the Licensee. The Licensor reserves the right to terminate this License Agreement immediately if the Licensee fails to maintain said private retaining wall improvements in the public storm drain easement located on Lot 104, Tract 12954, to the pointthatthe Licensor believes this placement to be detrimental to the public health, safety and welfare. In the event of the termination of this License Agreement, all costs to remove the retaining wall improvements shall be born by the Licensee. 4. Successors in Interest. The License Agreement shall inure to and be binding on the heirs, successors, executors, administrators, and assignees of the Licensee. 5. Term. This License Agreement shall continue in full force and effect, subject to paragraph —2— Ll 4, unless terminated by the Licensee or Licensor upon 90 days written notice; or, shall be terminated on 10 days notice if Licensee fails to adhere to any conditions of this Agreement. Upon termination, Licencee shall restore the easement to its original condition to the satisfaction of the City Engineer. DATED this 5'" day of November, 2002, at San Juan Capistrano. LICENSORS CITY OF SAN JUAN CAPISTRANO BY: By: INDER JAIN DIANE BATHGATE , MAYOR BY: ATTEST: SANJIV JON (Attach Notary Acknowledgment) —3— MARGARET MONAHAN, CITY CLERK APPROVED AS TO FORM: CITY CrTtVNEY CALIFORNIA ALL-PURPA ACKNOWLEDGMENT' l/ State of County of /19/111/1_ . . - On personally ❑ personally known to me – OR to me on the basis of satisfactory evidence to be the person(s) whose name(s) iskl'['aubscribed to the within instrument and acknowledged me that he/shek��xecuted the same in his her/t Ithorized capacity(ies), and that by his/he err nature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. S nr of Notary PuNic OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: Document Date: Signer(s) Other Than Named Above: Capacity(les) Claimed by Signer(s) Signer's Name: ■ ■ Individual Corporate Officer Title(s): Partner —❑ Limited ❑ General Attorney -in -Fact Trustee Guardian or Conservator Other: Signer Is Representing: Signer's Name: e■ Number of Pages: Individual Corporate Officer Title(s): Partner — ❑ Limited ❑ General Attorney -in -Fact Trustee Guardian or Conservator Other: Signer Is Representing: FIGHT THU.IBPRIMT OF SIGNER 11 1 0 1994 NatlaW Notary Aaaodadon - 927! RammN Aw.. P.O. Box 7186 - Canoga Pall , CA 91309-7194 Prod No. 5907 Reorder. Cal To"raa 14008769827 MARY J. MILLER M f- COMM ... 1240236 m p U NWARY PUBLIC -CALIFORNIA -i m ORANGE COUNTY til My Tetm Ezp. Nov, 19, 203 to me on the basis of satisfactory evidence to be the person(s) whose name(s) iskl'['aubscribed to the within instrument and acknowledged me that he/shek��xecuted the same in his her/t Ithorized capacity(ies), and that by his/he err nature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. S nr of Notary PuNic OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: Document Date: Signer(s) Other Than Named Above: Capacity(les) Claimed by Signer(s) Signer's Name: ■ ■ Individual Corporate Officer Title(s): Partner —❑ Limited ❑ General Attorney -in -Fact Trustee Guardian or Conservator Other: Signer Is Representing: Signer's Name: e■ Number of Pages: Individual Corporate Officer Title(s): Partner — ❑ Limited ❑ General Attorney -in -Fact Trustee Guardian or Conservator Other: Signer Is Representing: FIGHT THU.IBPRIMT OF SIGNER 11 1 0 1994 NatlaW Notary Aaaodadon - 927! RammN Aw.. P.O. Box 7186 - Canoga Pall , CA 91309-7194 Prod No. 5907 Reorder. Cal To"raa 14008769827 0 0 THE LAND REFERRED TO IN THIS AGREEMENT IS SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF ORANGE, CITY OF SAN JUAN CAPISTRANO, AND IS FURTHER DESCRIBED AS: LOT 104, TRACT 12954, RECORDED AS DOCUMENT 88-088244, Book 597, PAGE 23 OF 34. rroi LOT 105 � 10 6 o'er 10- N " GP LOT 104 1 " " cn LOT 103 LEGEND AP� EXISTING STORM DRAIN EASEMENT QO �O Q EXHIBIT "A" EXHIBIT B LOCATION MAP ATTACHMENT 2 0 32400 PASEO ADELANTO SAN JUAN CAPISTRANO, CA 92675 (949) 493-1171 (949) 493-1053 (FAX) ,vu"v.sanjuancapistrano.org II[IIIIIIIII • unnlsm ' 1961 1776 MEMBERS OF THE CIV COUNCIL DIANE L. SATHGATE COLLENE CAMPBELL JOHNS. GEFF W ATT HART DAVID M. SWEROUN CITY MANAGER GEORGESCARBOROUGH NOTIFICATION OF MEETING OF POTENTIAL INTEREST OF THE SAN JUAN CAPISTRANO CITY COUNCIL The City Council of San Juan Capistrano will meet at 7:00 p.m. on November 5, 2002, in the City Council Chamber in City Hall, to consider: "Consideration of a License Agreement with Inder & Sanjiv Jain for placement of Improvements within a Public Easement, 30481 Marbella Vista Drive (Tract 12954, Lot 104)" — Item No. D15 If you have specific thoughts or concerns regarding this item, you are encouraged to participate in this decision making process. You can communicate with the City Council through correspondence addressed to the Council and/or by attending the meeting and speaking to the Council during the public meeting. Correspondence related to this item must be received at City Hall by 5:00 p.m. on Monday, November 4, 2002 to allow time for the Council to consider its content. If you would like to speak at the meeting, please complete a blue "Request to Speak" form found inside the entrance to the Council Chamber. This form is turned in at the staff table, just in front of the Council dais. You will be called to speak by the Mayor when the item is considered. You have received this notice at the request of the City staff member Sam Shoucair, Senior Engineer. You may contact that staff member at (949) 443-6355 with any questions. The agenda, including agenda reports, is available to you on our web site: www.sanivancapistrano.oro. If you would like to subscribe to receive a notice when agendas are posted to the web site, please make that request by sending an e-mail to: council-aaendas(@sanouancapistano.org. A Meg Monah , City Clerk cc: Inder Jain & Sanjiv Jain, William M. Huber, Engineering & Building Director; Sam Shoucair, Senior Engineer Received staff report San Juan Capistrano: Preserving the Past to Enhance the Future 32400 PASEO ADELANTO SAN JUAN CAPISTRANO, CA 92675 (949) 493-1 171 (949) 493-1053 (FAX) invi, sanjuancapistrano.org January 9, 2003 0 Jaw 1 muuNnm Bnws10 1961 1776 NOTIFICATION OF ACTION BY THE CITY COUNCIL OF SAN JUAN CAPISTRANO MEMBERS OF THE CITY COUNCIL DIANE L. BkT GATE COLLENE CAMPBELL JOHN S. GELFF MATT HART DAVID M. SWERDLIN CITY MANAGER GEORGEGCARBOROUGH On January 7, 2003 the City Council of San Juan Capistrano met regarding: "Consideration of Reimbursement Agreement for Hidden Mountain/Los Corrales Drainage Facility (St. Pierre)" Item No. D13 The following action was taken at the meeting: Reimbursement agreement for Hidden Mountain/Los Corrales drainage facility between the City and Paul and Nancy St. Pierre approved. The following documents are in the process of being executed: Reimbursement Agreement. If you have any questions regarding this action, please contact Brian Perry, Senior Engineer at 443-6353 for more detailed information. Thank you, Meg Mna an, CMC City Cl rk Cc: Mr. & Mrs. St. Pierre*; Eric H. Nelson; Ronald W. Dye; Jim R. Allen; Thomas Wayne McDonald; Gary S. Johnson; Bonnie Jean Lynn; John R. Benson; Edward J. Both; Gareth C. Nitchman; William M. Huber, Engineering & Building Director; Brian Perry, Senior Engineer DRUG USE IE San Juan Capistrano: Preserving the Past to Enhance the Future F_ 1 32400 PASEO ADELANTO 5AN .JUAN CAPISTRANO, CA 92675 (949) 493-1171 (949) 493-1053 (FAX) Iruv sanjuancapistrano.org Jsee uconnnm nunisno � 1961 1776 30 MEMBERS OF THE CITY COUNCIL DIANE L. BATHGATE JOHN S. GELFF MATT HART JOESOTO DAVID M. SWERDLIN CITY MANAGER GEORGESCARBOROUGH NOTIFICATION OF MEETING OF POTENTIAL INTEREST OF THE SAN JUAN CAPISTRANO CITY COUNCIL The City Council of San Juan Capistrano will meet at 7:00 p.m. on January 7, 2003 in the City Council Chamber in City Hall, to consider: "Consideration of Reimbursement Agreement for Hidden Mountain/Los Corrales Drainage Facility (St. Pierre)" – Item No. D13 If you have specific thoughts or concerns regarding this item, you are encouraged to participate in this decision making process. You can communicate with the City Council through correspondence addressed to the Council and/or by attending the meeting and speaking to the Council during the public meeting. Correspondence related to this item must be received at City Hall by 5:00 p.m. on Monday, January 6, 2003 to allow time for the Council to consider its content. If you would like to speak at the meeting, please complete a blue "Request to Speak" form found inside the entrance to the Council Chamber. This form is turned in at the staff table, just in front of the Council dais. You will be called to speak by the Mayor when the item is considered. You have received this notice at the request of the City staff member Brian Perry, Senior Engineer. You may contact that staff member at (949) 443-6353 with any questions. The agenda, including agenda reports, is available to you on our web site: www.sanivancapistrano.org. If you would like to subscribe to receive a notice when agendas are posted to the web site, please make that request by sending an e-mail to: council -agendas &sanivancaoistano.org. Meg M han, CNC — City erk cc: . & Mrs. St. Pierre*; Eric H. Nelson; Ronald W. Dye; Jim R. Allen; Thomas Wayne McDonald; Gary S. Johnson; Bonnie Jean Lynn; John R. Benson; Edward J. Both; Gareth C. Nitchman; William M. Huber, Engineering & Building Director; Brian Perry, Senior Engineer * Received staff report San Juan Capistrano: Preserving the Past to Enhance the Future CITY OF SAN JUAN CAPISTRANO INTER -DEPARTMENTAL MEMORANDUM TO: John Shaw, City Attorney DEPT: City Attorney SUBJECT: Document Review FROM: DEPT: 1 lJ DATE: PHONE EXT: NOTE: IF THIS IS A "RUSH" ITEM. PLEASE COMPLETE IN RED INK ATTACHED ARE THE FOLLOWING (please describe document, i.e. agreement, contract, consultant agreent, etc.): iCeAA5_- OSI f'� Sq U S i PLEASE: (1) For your approval and signature (2) For your review and comment (3) For your information (4) As requested (5) (A) Keep for your files (A) When completed, return to: Ext. (C) Daterrime needed: CITY ATTORNEY'S COMMENTS l dIC)YG DATE(MM/DDM'VY) ACDRD. CERTIFICATE OF LIABILITY INSURANCE 4/10/2003 PRODUCER THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION NUGEN & ASSOC INS SER, INC ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR 10722 ARROW RTE, #116 ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. RANCHO CUCAMONGA, CA. 91730 INSURERS AFFORDING COVERAGE I NAIC# RB HOLT INC 34231 CAMINO CAPISTRANO #101A INSURER C: CAPISTRANO BEACH, CA 92624 INSURER D: 949 496-1660 INSURER E: COVERAGES THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSRD•L Lia NSRD TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE DATE MMIDD(YY POLICYEXPIRATION DATE MM/DD/YY LIMITS GENERAL LIABILITY EACH OCCURRENCE $1,000,000.00 PREMISESEaoccurer $ 50,000.00 X COMMERCIAL GENERAL LIABILITY CLAIMSMADE lx:) OCCUR MED EXP (Any one person) $ 5,000.00 A X GA 700941 08/13/02 08/13/03 PERSONAL B ADV INJURY $1,000,000.00 GENERAL AGGREGATE $2,000.000.00 GEN'L AGGREGATE LIMIT APPLIES PER: PRODUCTS - COMP/OP AGG $1.000,000.00 X POLICY PRO- JECT LOC AUTOMOBILE LIABILITY ANVAUTO COMBINED SINGLE LIMIT $1,000,000,00 (Ea accident) BODILY INJURY $ (Per person) X ALL OW NED AUTOS SCHEDULED AUTOS C X X HIRED AUTOS NON-OWNEDAUTOS BAP123333 12/17/02 12/17/03 BODILVINJURV (Peraccitlent) $ PROPERTY DAMAGE $ (Peraccitlenq GARAGE LIABILITY AUTO ONLY -EA ACCIDENT $ OTHERTHAN EAACC $ ANYAUTO AUTOONLY: AGG $ EXCESS/UMBRELLA LIABILITY EACH OCCURRENCE $ OCCUR CI CLAIMSMADE AGGREGATE $ $ DEDUCTIBLE $ RETENTION $ WORKERSCOMPENSATIONAND EMPLOYERS' LIABILITY ANY PROPRIETOR/PARTNER/EXECUTIVE I T RYSTATU LIMIT ER E.L. EACH ACCIDENT $ E.L. DISEASE - EA EMPLOYE $ OFFICEI/ EMBER EXCLUDED? er Ifye CIAL PROVISIONS SPECIAL PROVISIONS below E.L. DISEASE - POLICY LIMIT $ OTHER EQUIPMENT IMP 174784400 10/25/02 10/25/03 ALL RISK $1,000.DED B DESCRIPTION OF OPERATIONS / LOCATIONS /VEHICLES / EXCLUSIONS ADDED BY ENDORSEMENT/ SPECIAL PROVISIONS JAIN RESIDENCE 30481 MARBELLA VISTA SAN JUAN CAPISTANO CA 92675 CITY OF SAN JUAN CAPISTRANO IS BEING NAMED AS ADDITIONAL INSURED GRADING/CLEARING LAND a 2 Al CITY OF SAN JUAN CAPISTRANO 32400 PASEO ADELANTO SAN JUAN CAPISTRANO CA 92675 CITY CLERK SHOULD ANY OF THE ABOVE DESCRIBED POLI DATE THEREOF, THE ISSUING INSURER WILL NOTICE TO THE CERTIFICATE HOLDER NAMED IMPOSE NO OBLIGATION OR LIABILITY REPRESENTATIVES. A/f/ AUTHORIZED REPRESENTATIVE LA.iyft,pAYS WRITTEN FAIULL O DO SO SHALL INSUrmC ITS AGENTS OR N INSURED RB HOLT INC POLICY NO: GA 700941 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY BLANKET ADDITIONAL INSURED ENDORSEMENT This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART SCHEDULE Name of Person or Organization: CITY OF SAN JUAN CAPISTRANO Any person or organization that the named insured is obligated by virtue of a written contract or agreement to provide insurance such as is afforded by this policy and is approved by the Company in writing within 30 days of the inception of the contract or agreement, or the inception of this policy, whichever is later. WHO IS AN INSURED (Section II) is amended to included as an insured the person (s) or organization (s) shown in the Schedule as an insured but only with respect to the following: 1. Liability arising out of "your work" for that insured by or for you, or 2. Liability arising out of the ownership, maintenance, or use of premises while leased to you, or 3. Liability arising out of the maintenance, operation or use by you of equipment while leased to you by such person (s) or organization (s), or 4. Operations performed by you or on your behalf for which the state or political subdivision has issued a permit. It is further agreed that, if required by a written contract or agreement and approved by the Company, this insurance shall be primary insurance and is not excess or contributing with any insurance or self-insurance maintained by an entity which is an additional insured under the terms of this endorsement against a loss covered by this policy. Neither the coverages provided by this insurance policy nor the provisions of this endorsement shall apply to any claim arising out of the sole negligence of any additional insured or any of their agents/employees. ��7 A NUGEN—AUTHO ZED REPRESENTATIVE 04/10/03 DATE ANF 160 (05/97) ACORD CERTIFICATE OF LIABILITY INSURANCE 12/15/200 ' PRODUCER (949) 348-74CID FAX (949)348-2373 Insurance Solutions License #0746539 26522 La Alameda, Suite 190 Mission Viejo, CA 92691 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. INSURERS AFFORDING COVERAGE NAIC# INSURED Inder J. Jain 30481 Marbella Vista San Juan Capistrano, CA 92675 INSURER ALexington Ins CO INSURER B I INSURERC. INSURERD. NSURERE VERAGES THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDIN ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR kDD'L TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE POLICY EXPIRATION LIMITS GENERAL LIABILITY EACH OCCURRENCE $ COMMERCIAL GENERAL LIABILITY DAMAGE TO RENTED $ CLAIMS MADE —]OCCUR MED EXP (Any one person) $ PERSONAL B ADV INJURY $ GENERAL AGGREGATE $ GENT AGGREGATE LIMIT APPLIES PER PRODUCTS -COb1P!OP AGG $ PRO POLICY JECT LOC AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT ANY AUTO (Ea accident) S BODILY INJURY ALL OWNED AUTOS SCHEDULED AUTOS (Per person) $ HIRED AUTOS BODILY INJURY NONOWNEDAUTOS (Per .cadent) $ PROPERTY DAMAGE $ (Per acoldent) GARAGE LIABILITY AUTO ONLY - EA ACCIDENT $ OTHER THAN EA ACC $ ANY AUTO AUTO ONLY. AGG $ EXCESS/UMBRELLA LIABILITY EACH OCCURRENCE $ -I AGGREGATE $ OCCUR F CLAIMS MADE IS DEDUCTIBLE $ RETENTION $ WORKERS COMPENSATION AND WC SY INLATUf,OTH- EMPLOYERS' LIABILITY E.L. EACH ACCIDENT S ANY PROPRIETOR/PARTNEWEXECUTIVE E.L. DISEASE - EA EMPLOYEE $ OFFICER/MEMBER EXCLUDED? R yes, describe under E.L. DISEASE -POLICY LIMIT $ NS below SPECIALALPROVISIONS OTHER LE0585954 11/14/2003 11/14/2004 $1,000,000 LIABILITY (HOMEOWNERS A DESCRIPTION OF OPERATIONS I LOCATIONS / VEHICLES I EXCLUSIONS ADDED BY ENDORSEMENT / SPECIAL PROVISIONS 0481 MARBELLA VISTA, SAN JUAN CAPISTRANO, CA SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL 10 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLOGRRXVIED-1!0 E I CITY OF SAN JUAN CAPISTRANO BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE N OBLIGATION OR 32400 PASEO ADELANTO OF ANY KIN ON THE INSURER, ITS AGENTS OR R ESENTATIVES. SJ CAPISTRANO, CA 92675 AUTHORIZE REP SENTATIVE ACORD 25 (2001108) // / ©ACORD CORPORATION 1988 ExINGTON INSURANC ANY LFi€� ., H03 HOMEOWNER DE RATION PAGE --- Mortgagee Copy -- Policy Number: LE 0585954 01 KenewaTot Policy Number: Name of Insured and Mailing Address: Broker Name and Address: Inder Jain & Vijay Jain, Sanjiv & Rajiv Jain Bliss & Glennon, Inc. 30481 marbella Vista 435 N. Pacific Coast Highway San Juan Capistrano, CA 92675 Suite 200 Redondo Beach, CA 90277 o icy erm: 1 Months) Effective: 11/14/2003Expiration: 11/14/2004 12:01 AM Standard TIFe—at Me Insured's residence premises. The residence premises covered by this policy is located at the above address, unless otherwise stated. Insurance Is provided only with respect tothose special limits of liability applicable thereto: Coverage Part 1 - Homeowners Coverage Part 2 — Personal Umbrella - Coverage A: $ 1,015,000 - Umbrella Limit $ 0 - Coverage B: $ 101,500 - Self Insured Retention $ 0 - Coverage C: $ 710,500 Coverage Part 3 — Excess Flood - Coverage D: $ 203,000 - Building $ 0 Excess of $ 250,000 - Loss Assessment: $ 5,000 - Contents $ 0 Excess of $ 100,000 - Ordinance or Law: 10% Coverage Part 4 — Scheduled Property - Coverage E: $ 1,000,000 - Total Scheduled Property $ 0 - Coverage F: $ 1,000 Annual Premium: 5,288.00 Homeowners Deductibles Lexington PolicyPremium: 5,288.00 All Other Perils: $ 5000 Inspection Fee: $ 100.00 Wind and Hail: $ 5000 Policy Fee: $ 100.00 Earthquake: Excluded Surplus Lines Tax: $ 158.64 Special: None $ N/A Stamping Fee: $ 6.61 Total Due: $ 5,653.25 inimum Earned Premium: 25% Mortgagee 1 Loan # CITY OF SAN JUAN CAPISTRANO Sub r0 erInformation 32400 PASEO ADELANTO ams: SAN JUAN CAPISTRANO CA 92675 Insurance Solutions Addr 1: 26522 La Alameda Addr 2: Suite 190 City, St, Zip: Mission Viejo, CA 92691 o gages 2 Loan # omeowners Rating Information: Ferrito 89 Year Built: 2003 County: Orange -CA Construction: Frame PC: 3 EQ zone: N/A Forms and Endorsements made pa o Is po icy at tim, o issuance: Please See Schedule of Forms and Endorsements This declaration page with policy provisions and endorsements, if any, issued to form a part, thereof, completes the above numbered homeowner's policy. This insurance is issued pursuant to the CA surplus lines law. Persons insured by surplus lines carriers do not have the protection of the CA Insurance Guaranty Act to the extent of any right of recovery for the obligation of an insolvent, unlicensed insurer. Countersignature ate: 11/24/2003 % Countersigned At: Redondo Beach, CA Countersignature: Date Issued: 11/24/2003 LexElite 11/00 Authorized Representative: POLICY NUMBER: LE 0585954 01 Effective Date: 11/14/2003 Date Issued: 11/24/2003 SCHEDULE OF FORMS AND ENDORSEMENTS LEX 00 10 11 99 Earthquake Coverage Disclosure - Mandatory Offer of Earthquake Coverage LEX 04 33 04 02 Limited Mold Related Coverage LEX 04 95 04 01 Water Backup and Sump Overflow LEX 05 03 08 01 Specified Additional Amount of Insurance for Cov A - Dwelling HO 00 03 04 91 Homeowners 3 Special Form HO 01 04 02 00 Special Provisions - California HO 04 14 04 91 Special Computer Coverage HO 04 16 04 91 Premises Alarm or Fire Protection System HO 04 35 04 91 Loss Assessment Coverage HO 04 90 04 91 Personal Property Replacement Cost HO 04 96 04 91 Home Day Care Exclusion HO 05 80 05 97 Remediation, Limited Lead & Escaped Liquid Fuel Liability Coverages HO 24 82 04 91 Personal Injury Coverage LEX 00 04 01 01 Lexington Standard Policy Conditions LEX 00 11 08 99 California Residential Property Insurance Disclosure LEX 00 12 11 99 Consumer Affairs - California LEX 00 14 03 01 Important Flood Insurance Notice LEX 00 30 05 03 Exterior Insulation and Finish System Exclusion LEX 01 09 03 03 Special Provisions LEX 05 80 01 01 Advisory Notice to Policyholders - Explanatory Memo LEX 15 31 08 01 Special Personal Property Coverage LEX 24 90 09 00 Worker's Compensation - Residence Employees 1114VIAU" WjMe: 12:16 PM TO: N 492-3693 ACORD THIS IS EVIDENCE THAT INSURANCE AS IDENTIFIED BELOW RIGHTS AND PRIVILEGES AFFORDED UNDER THE POLICY. 0166606'0 PHONE (940,1348 1400 Lnsuraoce solut4cm5 -icense 00746S30 26522 La Alameda. ',Llill 190 4ission Vie),. (A 'IeeP1 CODE: 4542 SUB CODE. '"BENCY CUPOwnsm ID 00001144) INSURED indAr, sanjiv, Rajiv & Vijay lain Rage: 001-001 11/14/2003 IFYS ALL THE COMPANY keXingto. Ins LOAN NUMBER POLICY NUMBER HOOOOOI140 EFFECTIVE DATE EXPIRATION DATE CONTINUED UNTIL 11/1.412003 11/14/2004 X TERMINATED IF CHECKS) THIS REPLACES PRIOR EVIDENCE DATEW- vEWRIPTION 10481 Mar be I I i V, 5 TA San )non Carl St rano. Ca. 97675 COVERAGIoPERIL&FORM5 Personal Li,bllity 650-603-02 AMOUNT OF INSURANCE DEDUCTIBLE 1.000,000 A YHE POUCI f$ SUBJECT TA Tt1E PREMIUMS. FORMS AND RULES IN EFFECT FOR EAN POUCY PERIOD. H6ULD'THF POLICY BE TERMINATED. THE COMPANY WILL GIVE THE ADDITIONAL INTEREST IDENTIFIED BELOW io DAYS WRITTEN NOTICE, AND WILL SEND NOTIFICATION OF ANY CHANGES TO THE POLICY THAT WOULD AFFECT THAT INTEREST, IN ACCORDANCE WITH THE POLICY PROVISIONS OR AS REQUIRED BY LAW. NAMANDADDRESS MORTCACFE X ADDtTICIHA1. INSURED The City of s,, j,,in (apistrarr, I OsS PAYEE 32400 PaSPO Adelanto LOAN* San )van (spjsi,aH,. CA 92675 t 32400 PAS+EO ADELANTO SAN JUAN CAPISTRANO, CA 92675 (949) 493-1171 (949) 493-1053 (FAX) www.sanjuancapistrano.org November 13, 2002 Mr. Inder Jain, and Mr. Sanjiv Jain 960 Calle Negocio San Clemente, CA 92673 Re: License Agreement, APN 650-603-02 Dear Gentlemen: MEMBERS OF THE CITY COUNCIL DIANE L. BATHGATE COLLENE CAMPBELL JOHN S GELFF MATT HART DAVID M. SWERDLIN CITY MANAGER GEORGE SCARBOROUGH The abovementioned License Agreement was approved by the City Council at their meeting of November 5, 2002. The agreement is executed and ready to forward to the recorder. It will be forwarded upon receipt of: • A check for $36, made payable to the Orange County Clerk -Recorder, for the cost of recording the document — forwarded to my office, and • Evidence that insurance requirements have been met, per Section 2. Hold Harmless of the agreement. Insurance evidence may be faxed to (949) 493-1053, followed by original signed documents. Copies of this section are enclosed for your reference in supplying documentation. If you have any questions regarding the agreement, please contact Sam Shoucair, Senior Engineer (949) 443-6355. If you have questions regarding needed evidence of insurance, please contact Dawn Schanderl, Deputy City Clerk (949) 443-6310. you, an, as noted cc: Sam Shoucair, Senior Engineer; William Huber, Engineering and Building )rector; Dawn Schanderl, Deputy City Clerk DRUG USE IS San Juan Capistrano: Preserving the Past to Enhance the Future RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: City of San Juan Capistrano Office of the City Clerk 32400 Paseo Adelanto San Juan Capistrano, CA 92675 Project Location: 30481 Marbella Vista Drive, Lot 104, Tract 12954 LICENSE AGREEMENT Assessor's Parcel No. 650-603-02 THIS LICENSE AGREEMENT is made this 5`" day of November, 2002, by and between the CITY OF SAN JUAN CAPISTRANO, hereinafter referred to as "Licensor" and Inder Jain and Sanjiv Jain, hereinafter referred to as "Licensee". Licensor and Licensee mutually resolve as follows: Grant of License. Licensor hereby grants to Licensee a license right to use a portion of an existing storm drain easement for the purpose of placing and maintaining wall improvements and a stairway, at their property located at 30481 Marbella Vista Drive, located within the City of San Juan Capistrano, and more particularly described in Exhibit "A", attached hereto. The location of the improvements are set forth in Exhibit "B", attached hereto. Licensee will place the improvements under the direction of the Licensor's Director of Engineering and Building in the existing storm drain easement located on Lot 104, Tract 12954. 2. Hold Harmless. Licensee agrees to save and defend the Licensor, its elected and appointed officials, agents and employees harmless from and against any and all injuries to and deaths of persons and injuries to property or other interests and all claims, demands, costs, loss, damage, and liability, arising out of the performance of Licensee's rights and obligations under this Agreement. Licensee shall maintain in effect a policy of comprehensive general liability or commercial general liability insurance in which the limits of liability shall not be less than One Million Dollars ($1,000,000.00). Licensor shall be named as an additional insured on such policy and an endorsement shall be provided to Licensor proving that said insurance coverage is in place. ATTACH The foregoing indemnification and insurance obligations will terminate when the retainingwall, stairway improvements and all related appurtenances are properly removed from the storm drain easement located on Lot 104, Tract 12954 to the satisfaction of the City Engineer. 3. Responsibility of Licensee to Maintain. Repair. Remove and/or Relocate Private Improvements. Licensee has requested and the Licensor by execution of this Agreement allows the Licensee, at Licensee's sole expense, to construct and maintain private retaining wall and stairway improvements in the public storm drain easement located on their property (Lot 104, Tract 12954). Licensee acknowledges that the easement, in which the private retaining wall and stairway improvements will be placed, contains a public storm drain which may need to be accessed by the City for maintenance and/or repair. Any costs to repair, remove and/or relocate said private improvements occasioned by the above shall be borne by the Licensee. Prior to the issuance of construction permits, private improvements found to be in conflict with existing utility facilities or systems shall be redesigned, or utilities shall be relocated, subject to the approval of the specific agency/utility company, at the expense of the Licensee. Licensee further acknowledges if, during the course of construction and/or maintenance of the private improvements by the Licensee, any of the facility owners' equipment is damaged, the cost to repair and/or replace said equipment shall be borne by the Licensee. The Licensor reserves the right to terminate this License Agreement immediately if the Licensee fails to maintain said private retaining wall improvements in the public storm drain easement located on Lot 104, Tract 12954, to the point that the Licensor believes this placement to be detrimental to the public health, safety and welfare. In the event of the termination of this License Agreement, all costs to remove the retaining wall improvements shall be born by the Licensee. Successors in Interest. The License Agreement shall inure to and be binding on the heirs, successors, executors, administrators, and assignees of the Licensee. 5. Term. This License Agreement shall continue in full force and effect, subject to paragraph —2— City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA. 92675 (949) 493-1171 Fax: (949) 493-1053 FAX TRANSMISSION COVER SHEET Date: To: Fax: Re: Sender: 11111l"1Qi (OU"Yc'em - YOU SHOULD RECEIVE PAGE(S), INCLUDING THIS COVER SHEET. IF YOU DO NOT RECEIVE ALL THE PAGES, PLEASE CALL (949) J L A wa�-1 j'4L 1�2 ��110-6309 VnI OJ6 RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: City of San Juan Capistrano Office of the City Clerk 32400 Paseo Adelanto San Juan Capistrano, CA 92675 Project Location: 30481 Marbella Vista Drive, Lot 104, Tract 12954 Assessor's Parcel No. 650-603-02 THIS LICENSE AGREEMENT is made this 5`" day of November, 2002, by and between the CITY OF SAN JUAN CAPISTRANO, hereinafter referred to as "Licensor" and Inder Jain and Sanjiv Jain, hereinafter referred to as "Licensee". Licensor and Licensee mutually resolve as follows: Grant of License. Licensor hereby grants to Licensee a license right to use a portion of an existing storm drain easement for the purpose of placing and maintaining wall improvements and a stairway, at their property located at 30481 Marbella Vista Drive, located within the City of San Juan Capistrano, and more particularly described in Exhibit "A", attached hereto. The location of the improvements are set forth in Exhibit "B", attached hereto. Licensee will place the improvements under the direction of the Licensor's Director of Engineering and Building in the existing storm drain easement located on Lot 104, Tract 12954. 2. Hold Harmless. Licensee agrees to save and defend the Licensor, its elected and appointed officials, agents and employees harmless from and against any and all injuries to and deaths of persons and injuries to property or other interests and all claims, demands, costs, loss, damage, and liability, arising out of the performance of Licensee's rights and obligations under this Agreement. Licensee shall maintain in effect a policy of comprehensive general liability or . commercial general liability insurance in which the limits of liability shall not be less than One Million Dollars ($1,000,000.00). Licensor shall be named as an additional insured on such policy and an endorsement shall be provided to Licensor proving that said insurance coverage is in place. -I- ATTACHMENT 1 32400 PASEO AUELANTO SAN JUAN CAPISTRANO, CA 92675 (949) 493-1171 (949) 493-IOS3 (FAX) www.sanjuancapistrano.org November 13, 2002 Mr. Inder Jain, and Mr. Sanjiv Jain 960 Calle Negocio San Clemente, CA 92673 Re: License Agreement, APN 650-603-02 Dear Gentlemen: MEMBERS OF THE CITY COUNCIL DIANE L. BATHGATE COU -ENE CAMPBELL JOHN S. GELFF MATT HAAT DAVID M. SVVERDLIN �q CITY MANAGER GEORGE SCARBOROUGH } I' 03� , I 3� i �J IJ' The abovementioned License Agreement was approved by the City Council at their meeting of November 5, 2002. The agreement is executed and ready to forward to the recorder. It will be forwarded upon receipt of: A check for $36, made payable to the Orange County Clerk -Recorder, for the cost of recording the document — forwarded to my office, and Evidence that insurance requirements have been met, per Section 2. Hold Harmless of the agreement. Insurance evidence may be faxed to (949) 493-1053, followed by original signed documents. Copies of this section are enclosed for your reference in supplying documentation. If you have any questions regarding the agreement, please contact Sam Shoucair, Senior Engineer (949) 443-6355. If you have questions regarding needed evidence of insurance, please contact Dawn Schanderl, Deputy City Clerk (949) 443-6310. you, Meg M"han, CMC as noted cc: Sam Shoucair, Senior Engineer; William Huber, Engineering and Building Director; Dawn Schanderl, Deputy City Clerk DRUG USE IS San Juan Capistrano: Preserving the Past to Enhance the Future 2 A Q) VL X7 �X, y L a m m E c d o @ c o E N N v � CN c N V) w co co co o E 3 0) cli rn n d c c0 c6 rn a) Mn ocm m =Zc T O i �a) O a) O OaN)O oU U�oo LAp a) () L)' Z (c) Z aa) a) _ m a) m U U U c c a O c U li U) F M d L a) (D a) 2 H O) fn O) N It City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA, 92675 (949) 493-1171 Fax: (949) 493-1053 FAX TRANSMISSION COVER SHEET Date: ��3�0 To: Fax: Re: "-"' r6 5 / Sender: VI/�a1�' CQfI�QD.wo, Colo)Colo)Vg3-63©q r YOU SHOULD RECEIVE-PAGE(S), INCLUDING THIS COVER SHEET. IF YOU DO NOT RECEIVE ALL THE PAGES, PLEASE CALL (949) &WUYL�' lttA&a-P "gKG-v� wo'lu i N 32400 PA ES O ADEL.ANTO SAN JUAN CAPISTRANO, CA 92675 (949) 493-1171 (949) 493-1053 (FAX) www.sanjuancapistrano.org November 13, 2002 Mr. Inder Jain, and Mr. Sanjiv Jain 960 Calle Negocio San Clemente, CA 92673 Re: License Agreement, APN 650-603-02 Dear Gentlemen: MEMBERS OF THE CITY COUNCIL DIANE L. BATHGATE COLLENE CAMPBELL JOHN S. GELFF MATT HMT DAVID M. SWERDLIN CITY MANAGER GEORGE SCARBOROUGH The abovementioned License Agreement was approved by the City Council at their meeting of November 5, 2002. The agreement is executed and ready to forward to the recorder. It will be forwarded upon receipt of: • A check for $36, made payable to the Orange County Clerk -Recorder, for the cost of recording the document — forwarded to my office, and • Evidence that insurance requirements have been met, per Section 2. Hold Harmless of the agreement. Insurance evidence may be faxed to (949) 493-1053, followed by original signed documents. Copies of this section are enclosed for your reference in supplying documentation. If you have any questions regarding the agreement, please contact Sam Shoucair, Senior Engineer (949) 443-6355. If you have questions regarding needed evidence of insurance, please contact Dawn Schanderl, Deputy City Clerk (949) 443-6310. you, as noted cc: Sam Shoucair, Senior Engineer, William Huber, Engineering and Building erector; Dawn Schanderl, Deputy City Clerk San Juan Capistrano: Preserving the Past to Enhance the Future JV�IY ��'� Rac,w � Sa, Je�.�tij- l� �r�v5� tum mou) 411� a,�t"vvc -moi Ro? mer -kq 697 �ECC1 16,11 INSUP' Ni:COMPANY LEXINGTON H03 HOMEOWNER DECLARATIONS PAGE -- Insured Copy -- Policy Number: LE 0585954 01 Kenewal of Policy Number: Name of Insured and Mailing Address: Broker Name and Address: Inder Jain & Vijay Jain, Sanjiv & Rajiv Jain Bliss & Glennon, Inc. 30481 marbella Vista 435 N. Pacific Coast Highway San Juan Capistrano, CA 92675 Suite 200 Redondo Beach, CA 90277 o Icy erm: 12 Month(s) Effective: 11/14/2003Expiration: 11/14/2004 12:01 AM Standard Time at the Insured's residence premises. The residence premises covered by this policy Is located at the above address, unless otherwise stated. Insurance is provided only with respect to those special limits of liability applicable thereto: Coverage Part 1 - Homeowners Coverage Part 2 — Personal Umbrella - Coverage A: $ 1,015,000 - Umbrella Limit $ 0 - Coverage B: $ 101,500 - Self Insured Retention $ 0 - Coverage C: $ 710,500 Coverage Part 3 — Excess Flood - Coverage D: $ 203,000 - Building $ 0 Excess of $ 250,000 - Loss Assessment: $ 5,000 - Contents $ 0 Excess of $ 100,000 - Ordinance or Law: 10% Coverage Part 4 — Scheduled Property - Coverage E: $ 1,000,000 Total Scheduled Property $ 0 - Coverage F: $ 1,000 Annual remlum: 5,288.0 Homeowners Deductibles Lexington PolicyPremium: 5,288.00 All Other Perils: $ 5000 Inspection Fee: $ 100.00 Wind and Hail: $ 5000 Policy Fee: $ 100:00 Earthquake: Excluded Surplus Lines Tax: $ 158.64 Special: None $ N/A Stamping Fee: $ 6.61 Total Due: $ 5,653.25 Minimum Earned Premium: 25% Mortgagee I Loan # CITY OF SAN JUAN CAPISTRANO Sub Broker Information 32400 PASEO ADELANTO ams: Insurance Solutions SAN JUAN CAPISTRANO CA 92675 Addr 1: 26522 La Alameda Addr 2: Suite 190 City, St, Zip: Mission Viejo, CA 92691 Mortgagee 2 Loan # omeowners a Ing n orma Ion: ern ory: 89 Year Built: 2003 County: Or: -CA Construction: Frame PC: g EQ zone: N/A Forms and Endorsements made part of this- policy at time c Issuance: Please See Schedule of Forms and Endorsements This declaration page with policy provisions and endorsements, if any, issued to form a part, thereof, completes the above numbered homeowner's policy. This insurance is issued pursuant to the CA surplus lines law. Persons insured by surplus lines carriers do not have the protection of the CA Insurance Guaranty Act to the extent of any right of recovery for the obligation of an insolvent, unlicensed insurer. Countersignature Date: 11/24/2003 Countersigned At: Redondo Beach, CA Countersignature: Date Issued: 11/24/2003 LexElite 11/00 Authorized Representative: (f�f, POLICY NUMBER: LE 0585954 01 Effective Date: 11/14/2003 SCHEDULE OF FORMS AND ENDORSEMENTS Date Issued: 11/24/2003 LEX 00 10 11 99 Earthquake Coverage Disclosure - Mandatory Offer of Earthquake Coverage LEX 04 33 04 02 Limited Mold Related Coverage LEX 04 95 04 01 Water Backup and Sump Overflow LEX 05 03 08 01 Specified Additional Amount of Insurance for Cov A - Dwelling HO 00 03 04 91 Homeowners 3 Special Form HO 01 04 02 00 Special Provisions - California HO 04 14 04 91 Special Computer Coverage HO 04 16 04 91 Premises Alarm or Fire Protection System HO 04 35 04 91 Loss Assessment Coverage HO 04 90 04 91 Personal Property Replacement Cost HO 04 96 04 91 Home Day Care Exclusion HO 05 80 05 97 Remediation, Limited Lead & Escaped Liquid Fuel Liability Coverages HO 24 82 04 91 Personal Injury Coverage LEX 00 04 01 01 Lexington Standard Policy Conditions LEX 00 11 08 99 California Residential Property Insurance Disclosure LEX 00 12 11 99 Consumer Affairs - California LEX 00 14 03 01 Important Flood Insurance Notice LEX 00 30 05 03 Exterior Insulation and Finish System Exclusion LEX 01 09 03 03 Special Provisions LEX 05 80 01 01 Advisory Notice to Policyholders - Explanatory Memo LEX 15 31 08 01 Special Personal Property Coverage LEX 24 90 09 00 Worker's Compensation - Residence Employees POLICY NUMBER: LE 0585954 01 LEX_00_10_11_99 EARTHQUAKE COVERAGE DISCLOSURE MANDATORY OFFER OF EARTHQUAKE COVERAGE (CALIFORNIA ONLY) THE POLICY YOU HAVE APPLIED FOR DOES NOT PROVIDE COVERAGE AGAINST THE PERIL OF EARTHQUAKE, CALIFORNIA LAW REQUIRES THAT EARTHQUAKE COVERAGE BE OFFERED TO YOU AT YOUR OPTION. WARNING: THESE COVERAGES MAY DIFFER SUBSTANTIALLY FROM AND PROVIDE LESS PROTECTION THAN THE COVERAGE PROVIDED BY YOUR HOMEOWNERS' INSURANCE POLICY. THERE ARE EXCLUSIONS AND LIMITATIONS SUCH AS OUTBUILDINGS, SWIMMING POOLS, MASONRY FENCES, AND MASONRY CHIMNEYS. THIS DISCLOSURE FORM CONTAINS ONLY A GENERAL DESCRIPTION OF COVERAGES AND IS NOT PART OF YOUR EARTHQUAKE INSURANCE POLICY. ONLY THE SPECIFIC PROVISIONS OF YOUR POLICY WILL DETERMINE WHETHER A PARTICULAR LOSS IS COVERED AND, IF SO, THE AMOUNT PAYABLE. THE COVERAGE, SUBJECT TO POLICY PROVISIONS, MAY BE PURCHASED AT ADDITIONAL COST ON THE FOLLOWING TERMS: Dwelling Structures Property Loss of Use Premium Earthquake Coverage 1,015,000 $0 $5000 * $1500 1,821 Applicable Deductible: 15% * State Law imposes a minimum of not less than $1,500.00 for this coverage. + Subject to a MINIMUM of $1,000 Deductible. If your deductible amount exceeds the amount of the loss we will not pay for the loss. The following additional optional coverages are required by state law to be offered because they are not already provided in the minimum offer of coverage stated above: You may purchase coverage in a specific percentage amount of the coverage now afforded your residence for: (a) Payment of private structural engineering costs to determine habitability of your residence after an earthquake and (b) Actual demolition costs due to condemnation of your residence as a result of an earthquake. 2. If you have taken verified steps to fit or retrofit your insured residence to reduce the earthquake damage hazard, you may purchase coverage to pay reconstruction costs to bring your residence up to local residential standards as required by your local government as part of the reconstruction permit process after an earthquake. State Law imposes a minimum of $10,000 for this coverage. With this offer, you have been provided a description of all surcharges and how the deductible applies to the market value, insured value or replacement value for residential earthquake coverage. Please ask your agent for information regarding the dollar amount of the surcharges. There are no discounts available on the premium for residential earthquake coverage. The undersigned acknowledges that Earthquake coverage has been offered, that a premium has been quoted for Earthquake coverage and that said coverage is hereby: ACCEPTED REJECTED (Signature Required) Signature Date Name Insured **AGENT/BROKER MUST COMPLETE SHADED SECTION** LEX_00_10_11_99 LEX_00_10_11_99 Page 2 of 2 POLICY NUMBER: LE 0585954 01 LEX 05 03 08 01 SPECIFIED ADDITIONAL AMOUNT OF INSURANCE FOR COVERAGE A - DWELLING (APPLIES ONLY WHEN LOSS TO BUILDING INSURED UNDER COVERAGE A EXCEEDS THE COVERAGE A LIMIT OF LIABILITY SHOWN IN THE DECLARATIONS) SCHEDULE* Additional Amount Of Insurance: 150 % * The Additional Amount Of Insurance is determined by multiplying the Coverage A limit of liability shown in the Declarations by the percentage amount shown above. *Entry may be left blank if shown elsewhere in this policy for this coverage. To the extent that coverage is provided, we agree to provide an additional amount of insurance in accordance with the following provisions: A. If you have: 1. Allowed us to adjust the Coverage A limit of liability and the premium in accordance with: a. The property evaluations we make; and b. Any increases in inflation; and 2. Notified us, within 30 days of completion, of any improvements, alterations or additions to the building insured under Coverage A which increase the replacement cost of the building by 5% or more; The provisions of this endorsement will apply after a loss, provided you elect to repair or replace the damaged building. B. If there is a loss to the building insured under Coverage A that exceeds the Coverage A limit of liability shown in the Declarations, for the purpose of settling that loss only: 1. We will provide an additional amount of insurance, up to the amount described in the Schedule above; and 2. Section I — Condition 3. Loss Settlement Paragraph b. is deleted and replaced by Paragraphs b., c., and d. as follows: b. The building insured under Coverage A at replacement cost without deduction for depreciation. We will pay no more than the smallest of the following amounts: 1. The replacement cost of that part of the building damaged with material of like kind and quality and for like use; 2. The necessary amount actually spent to repair or replace the damaged building; or LEX 05 03 08 Ot- 3. The limit of liability under this policy that applies to the building, plus any additional amount provided by this endorsement. If the building is rebuilt at a new premises, the cost described in a. above is limited to the cost which would have been incurred if the building had been rebuilt at the original premises. c. We will pay no more than the actual cash value of the damage until actual repair or replacement is complete. d. You may disregard the replacement cost loss settlement provisions and make claim under this policy for loss to the building on an actual cash value basis. You may then make claim for any additional liability on a replacement cost basis, provided you notify us in writing of your intent to do so within 180 days after the date of loss. Exclusion: This additional coverage is not provided for any loss caused directly or indirectly by "earth movement'. Such loss is excluded regardless of any other cause or event contributing concurrently or in any sequence to the loss. This exclusion applies whether or not the loss event results in widespread damage or affects a substantial area. All other provisions of this policy apply. Page 1 eft POLICY NUMBER: LE 0585954 01 HOMEOWNERS LEX 04 95 04 01 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. WATER BACK UP AND SUMP OVERFLOW 1. For an additional premium, we insure, up to $5,000 , for direct physical loss, not caused by the negligence of any "insured," to property covered under Section I caused by: a. Water which backs up through sewers or drains; or b. Water which overflows from a sump even if such overflow results from the mechanical breakdown of the sump pump. This coverage does not apply to direct physical loss of the sump pump, or related equipment, which is caused by mechanical breakdown. This endorsement does not increase the limits of liability for Coverages A, B, C or D stated in the policy Declarations. 2. Special Deductible The following deductible provision replaces any other deductible provision in the policy with respect to loss covered under this endorsement. We will pay only that part of the loss which exceeds $250. No other deductible applies to this coverage. This deductible does not apply with respect to Coverage D — Loss of Use. 3. Section I — Perils Insured Against In Form HO 00 03, paragraph 2.e.(2) under Coverage A — Dwelling and Coverage B — Other Structures is deleted, with respect to coverage for loss caused by overflow of sumps, and replaced by the following: (2) Inherent vice, latent defect; In Form HO 00 15, this is subparagraph 1.b.(4)(b); in HO 17 32, this is subparagraph 2.e.(2). 4. Section I — Exclusions 3. Water Damage is deleted and replaced by the following: 3. Water Damage, meaning: a. Flood, surface water, waves, tidal water, overflow of a body of water, or spray from any of these, whether or not driven by wind; or b. Water below the surface of the ground, including water which exerts pressure on or seeps or leaks through a building, sidewalk, driveway, foundation, swimming pool or other structure. Direct loss by fire or explosion resulting from water damage is covered. (In Form HO 00 03, this is item 1.c.) All other provisions of this policy apply. LEX 04 95 04 01 Page 1 of 1 POLICY NUMBER: LE 0585954 01 HOMEOWNERS LEX 04 33 04 02 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. LIMITED MOLD RELATED COVERAGE (Coverage Part 1- Homeowners Only) SCHEDULE* These limits of liability apply to the total of all loss or costs payable under this endorsement, regardless of the number of "occurrences", the number of claims made, or the number of locations insured under this endorsement and listed in this Schedule. 1. Section I — Property Coverage Limit Of Liability for the Additional Coverage "Mold Related $ 5,000 Items" 2. Section 11— Coverage E Aggregate Sublimit Of Liability for "Mold Related Items" $ 5,000 'Entries may be left blank if shown elsewhere in this policy for this coverage. DEFINITIONS The following definitions are added: 1. "Mold Related Items" include the following definitions for "Fungus(i)", "Mold(s)", "Spore(s)", but also includes, Wet or Dry Rot, Bacteria, Mildew or Yeast. a. "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, mushrooms, and any mycotoxins, spores, scents or byproducts produced or released by fungi. b. "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. c. "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. SECTION I — PROPERTY COVERAGES ADDITIONAL COVERAGES The following Additional Coverage is added: 12. "Mold Related Items" a. The amount shown in the Schedule above is the most we will pay for: (1) The total of all loss payable under Sec- tion I — Property Coverages caused by "mold related items"; (2) The cost to remove "mold related items" from property covered under Section I — Property Coverages; (3) The cost to tear out and replace any part of the building or other covered property as needed to gain access to the "mold related items"; and (4) The cost of testing of air or property to confirm the absence, presence or level of "mold related items" whether per- formed prior to, during or after removal, repair, restoration or replacement. The cost of such testing will be provided only to the extent that there is a reason to be- lieve that there is the presence of "mold related items". b. The coverage described in 12.a. only ap- plies when such loss or costs are a result of a Peril Insured Against that occurs during the policy period and only if all reasonable means were used to save and preserve the property from further damage at and after the time the Peril Insured Against occurred. c. The amount shown in the Schedule for this coverage is the most we will pay for the to- tal of all loss or costs payable under this Additional Coverage regardless of the: (1) Number of locations insured under this endorsement; or (2) Number of claims made LEX 04 33 04 02 Page 1of 3 d. If there is covered loss or damage to cov- ered property, not caused, in whole or in part, by "mold related items", loss payment will not be limited by the terms of this Additional Cov- erage, except to the extent that "mold related items" causes an increase in the loss. Any such increase in the loss will be subject to the terms of this Endorsement. This coverage does not increase the limit of li- ability applying to the damaged covered prop- erty. (This is Additional Coverage 11. in Form HO 00 06.) SECTION I — PERILS INSURED AGAINST In Form HO 00 03 or HO 00 03, HO 00 04 and HO 00 06 with LEX 15 31: Paragraph 2.e.(3) or 1.1l (if LEX 15 31 is at- tached) is deleted and replaced by the following: (3) or (c) Smog, rust or other corrosion; Paragraph 2.e.(9) or 1.11b.(4)(c) (if LEX 15 31 is at- tached) is added: (9) or (i)Constant or repeated seepage or leak- age of water or the presence or conden- sation of humidity, moisture or vapor, over a period of weeks, months or years unless such seepage or leakage of wa- ter or the presence or condensation of humidity, moisture or vapor and the re- sulting damage is unknown to all "insur- eds" and is hidden within the walls or ceilings or beneath the floors or above the ceilings of a structure. In Form HO 00 06 with HO 17 31: Paragraph 3.d.(3) is deleted and replaced by the following: (3) Smog, rust or other corrosion; Paragraph 3.d.(9) is added: (9) In Form HO 00 06 with HO 17 32: Paragraph 2.e.(3) is deleted and replaced by the following: (3) Smog, rust or other corrosion; Paragraph 2.e.(9) is added: (9) Constant or repeated seepage or leakage of water or the presence or condensation of hu- midity, moisture or vapor, over a period of weeks, months or years unless such seepage or leakage of water or the presence or con- densation of humidity, moisture or vapor and the resulting damage is unknown to all "insur- eds" and is hidden within the walls or ceilings or beneath the floors or above the ceilings of a structure. SECTION I — EXCLUSIONS Exclusion 1.1. is added. 1. "Mold Related Items" "Mold Related Items" including the presence, growth, proliferation, spread or any activity of "mold related items". This Exclusion does not apply: (1) When "Mold Related Items" results from fire or lightning; or (2) To the extent coverage is provided for in the "Mold Related Items" Additional Coverage under Section I — Property Coverages with respect to loss caused by a Peril Insured Against other than fire or lightning. Direct loss by a Peril Insured Against resulting from "Mold Related Items" is covered. (This is Exclusion 9. in Form HO 00 04 and HO 00 O6.) SECTION 11— CONDITIONS Condition 1. Limit Of Liability is deleted and replaced by the following: 1. Limit Of Liability Our total liability under Coverage E for all damages resulting from any one "occurrence" will not be more than the Coverage E limit of liability shown in the Declarations. This limit is the same regardless of the number of "insureds", claims made or per- sons injured. All "bodily injury" and "property dam- age" resulting from any one accident or from con- tinuous or repeated exposure to substantially the same general harmful conditions will be consid- ered to be the result of one "occurrence". Our total liability under Coverage F for all medical expense payable for "bodily injury" to one person as the result of one accident will not be more than the Coverage F limit of liability shown in the Decla- rations. However, our total liability under Coverage E for the total of all damages arising directly or indi- rectly, in whole or in part, out of the actual, alleged or threatened inhalation of, ingestion of, contact with, exposure to, existence of, or presence of any "Mold Related Items" will not be more than the Section II — Coverage E Aggregate Sublimit Of Li- ability for "Mold Related Items". That sublimit is the amount shown in the Schedule. This is the most we will pay regardless of the: a. Number of locations insured under the policy to which this endorsement is attached; b. Number of persons injured; c. Number of persons whose property is dam- aged; Page 2 of 3 LEX 04 33 04 02 d. Number of "insureds"; or e. Number of "occurrences" or claims made. This sublimit is within, but does not increase, the Coverage E limit of liability. It 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. With respect to damages arising out of "Mold Related Items" described in 1. Limit Of Liability of this en- dorsement, Condition 2. Severability Of Insurance is deleted and replaced by the following: 2. Severability Of Insurance This insurance applies separately to each "in- sured" except with respect to the Aggregate Sub - limit of Liability described in this endorsement un- der Section II — Conditions 1., Limit Of Liability. This condition will not increase the limit of liability for this coverage. SECTION I AND II CONDITIONS Condition 1. Policy Period is deleted and replaced by the following: 1. Policy Period This policy applies only to loss or costs in Section or "bodily injury" or "property damage" in Section II, which occurs during the policy period. All other provisions of the policy apply. This limited coverage applies to Coverage Part I Homeowners only. No other coverage parts provide this type of coverage. LEX 04 33 04 02 Page 3 of 3 HOMEOWNERS HO 00 03 04 91 HOMEOWNERS3 SPECIAL FORM AGREEMENT We will provide the insurance described in this policy in return for the premium and compliance with all applicable provisions of this policy. DEFINITIONS In this policy, "you" and "your" refer to the "named insured" shown in the Declarations and the spouse if a resident of the same household. "We," "us" and "bur" refer to the Company providing this insurance. In addition, certain words and phrases are defined as follows: 1. "Bodily injury" means bodily harm, sickness or disease, including required care, loss of services and death that results. 2. 'Business" includes trade, profession or occupa- tion. 3. "Insured" means you and residents of your house- hold who are: a. Your relatives; or b. Other persons under the age of 21 and in the care of any person named above. Under Section II, "insured" also means: c. With respect to animals or watercraft to which this policy applies, any person or organization legally responsible for these animals or water- craft which are owned by you or any person in- cluded in 3.a. or 3.b. above. A person or or- ganization using or having custody of these animals or watercraft in the course of any "business" or without consent of the owner is not an "insured"; d. With respect to any vehicle to which this policy applies: (1) Persons while engaged in your employ or that of any person included in 3.a. or 3.b. above; or (2) Other persons using the vehicle on an "in- sured location" with your consent. 4. 'Insured location" means: a. The "residence premises"; b. The part of other premises, other structures and grounds used by you as a residence and: (1) Which is shown in the Declarations; or (2) Which is acquired by you during the policy period for your use as a residence; c. Any premises used by you in connection with a premises in 4.a. and 4.1b. above; d. Any part of a premises: (1) Not owned by an "insured"; and (2) Where an "insured" is temporarily residing; e. Vacant land, other than farm land, owned by or rented to an "insured"; f. Land owned by or rented to an "insured" on which a one or two family dwelling is being built as a residence for an "insured'; g. Individual or family cemetery plots or burial vaults of an "insured'; or h. Any part of a premises occasionally rented to an "insured" for other than "business" use. 5. "Occurrence" means an accident, including con- tinuous or repeated exposure to substantially the same general harmful conditions, which results, during the policy period, in: a. 'Bodily injury"; or b. 'Property damage." 6. 'Property damage" means physical injury to, de- struction of, or loss of use of tangible property. 7. 'Residence employee" means: a. An employee of an "insured" whose duties are related to the maintenance or use of the "resi- dence premises," including household or do- mestic services; or b. One who performs similar duties elsewhere not related to the "business" of an "insured." 8. 'Residence premises" means: a. The one family dwelling, other structures, and grounds; or b. That part of any other building; where you reside and which is shown as the "resi- dence premises" in the Declarations. "Residence premises" also means a two family dwelling where you reside in at least one of the family units and which is shown as the "residence premises" in the Declarations. HO 00 03 04 91 Copyright, Insurance Services Office, Inc., 1990 Page 1 of 18 SECTION I — PROPERTY COVERAGES COVERAGE A— Dwelling We cover: 1. The dwelling on the "residence premises" shown in the Declarations, including structures attached to the dwelling; and 2. Materials and supplies located on or next to the "residence premises" used to construct, alter or repair the dwelling or other structures on the "resi- dence premises." This coverage does not apply to land, including land on which the dwelling is located. COVERAGE B — Other Structures We cover other structures on the "residence prem- ises" set apart from the dwelling by clear space. This includes structures connected to the dwelling by only a fence, utility line, or similar connection. This coverage does not apply to land, including land on which the other structures are located. We do not cover other structures: 1. Used in whole or in part for "business"; or 2. Rented or held for rental to any person not a ten- ant of the dwelling, unless used solely as a private garage. The limit of liability for this coverage will not be more than 10% of the limit of liability that applies to Cover- age A. Use of this coverage does not reduce the Cov- erage A limit of liability. COVERAGE C — Personal Property We cover personal property owned or used by an "insured" while it is anywhere in the world. At your request, we will cover personal property owned by: 1. Others while the property is on the part of the "residence premises" occupied by an "insured"; 2. A guest or a "residence employee," while the property is in any residence occupied by an "in- sured." Our limit of liability for personal property usually lo- cated at an "insured's" residence, other than the "resi- dence premises," is 10% of the limit of liability for Coverage C, or $1000, whichever is greater. Personal property in a newly acquired principal residence is not subject to this limitation for the 30 days from the time you begin to move the property there. Special Limits of Liability. These limits do not in- crease the Coverage C limit of liability. The special limit for each numbered category below is the total limit for each loss for all property in that category. 1. $200 on money, bank notes, bullion, gold other than goldware, silver other than silverware, plati- num, coins and medals. 2. $1000 on securities, accounts, deeds, evidences of debt, letters of credit, notes other than bank notes, manuscripts, personal records, passports, tickets and stamps. This dollar limit applies to these categories regardless of the medium (such as paper or computer software) on which the ma- terial exists. This limit includes the cost to research, replace or restore the information from the lost or damaged material. 3. $1000 on watercraft, including their trailers, fur- nishings, equipment and outboard engines or mo- tors. 4. $1000 on trailers not used with watercraft. 5. $1000 for loss by theft of jewelry, watches, furs, precious and semi-precious stones. 6. $2000 for loss by theft of firearms. 7. $2500 for loss by theft of silverware, silver-plated ware, goldware, gold-plated ware and pewtenvare. This includes flatware, hollowware, tea sets, trays and trophies made of or including silver, gold or pewter. 8. $2500 on property, on the "residence premises," used at any time or in any manner for any "busi- ness" purpose. 9. $250 on property, away from the "residence premises," used at any time or in any manner for any "business" purpose. However, this limit does not apply to loss to adaptable electronic apparatus as described in Special Limits 10. and 11. below. 10.$1000 for loss to electronic apparatus, while in or upon a motor vehicle or other motorized land con- veyance, if the electronic apparatus is equipped to be operated by power from the electrical system of the vehicle or conveyance while retaining its capa- bility of being operated by other sources of power. Electronic apparatus includes: a. Accessories or antennas; or b. Tapes, wires, records, discs or other media; for use with any electronic apparatus. Page 2 of 18 Copyright, Insurance Services Office, Inc., 1990 HO 00 03 04 91 11.$1000 for loss to electronic apparatus, while not in or upon a motor vehicle or other motorized land conveyance, if the electronic apparatus: a. Is equipped to be operated by power from the electrical system of the vehicle or conveyance while retaining its capability of being operated by other sources of power; b. Is away from the "residence premises"; and c. Is used at any time or in any manner for any "business" purpose. Electronic apparatus includes: a. Accessories and antennas; or b. Tapes, wires, records, discs or other media; for use with any electronic apparatus. Property Not Covered. We do not cover: 1. Articles separately described and specifically insured in this or other insurance; 2. Animals, birds or fish; 3. Motor vehicles or all other motorized land convey- ances. This includes: a. Their equipment and accessories; or D. Electronic apparatus that is designed to be operated solely by use of the power from the electrical system of motor vehicles or all other motorized land conveyances. Electronic appa- ratus includes: (1) Accessories or antennas; or (2) Tapes, wires, records, discs or other media; for use with any electronic apparatus. The exclusion of property described in 3.a. and 3.b. above applies only while the property is in or upon the vehicle or conveyance. We do cover vehicles or conveyances not subject to motor vehicle registration which are: a. Used to service an "insured's" residence; or b. Designed for assisting the handicapped; 4. Aircraft and parts. Aircraft means any contrivance used or designed for flight, except model or hobby aircraft not used or designed to carry people or cargo; 5. property of roomers, boarders and other tenants, except property of roomers and boarders related to an "insured"; 6. Property in an apartment regularly rented or held for rental to others by an "insured," except as pro- vided in Additional Coverages 10.; 7. Property rented or held for rental to others off the "residence premises"; 8. "Business" data, including such data stored in: a. Books of account, drawings or other paper records; or b. Electronic data processing tapes, wires, rec- ords, discs or other software media; However, we do cover the cost of blank recording or storage media, and of pre-recorded computer programs available on the retail market; or 9. Credit cards or fund transfer cards except as pro- vided in Additional Coverages 6. COVERAGE D — Loss Of Use The limit of liability for Coverage D is the total limit for all the coverages that follow. 1. If a loss covered under this Section makes that part of the "residence premises" where you reside not fit to live in, we cover, at your choice, either of the following. However, if the "residence premises" is not your principal place of residence, we will not provide the option under paragraph b. below. a. Additional Living Expense, meaning any necessary increase in living expenses incurred by you so that your household can maintain its normal standard of living; or b. Fair Rental Value, meaning the fair rental value of that part of the "residence premises" where you reside less any expenses that do not continue while the premises is not fit to live in. Payment under a. or b. will be for the shortest time required to repair or replace the damage or, if you permanently relocate, the shortest time required for your household to settle elsewhere. 2. If a loss covered under this Section makes that part of the "residence premises" rented to others or held for rental by you not fit to live in, we cover the: Fair Rental Value, meaning the fair rental value of that part of the "residence premises" rented to others or held for rental by you less any expenses that do not continue while the premises is not fit to live in. Payment will be for the shortest time required to repair or replace that part of the premises rented or held for rental. 3. If a civil authority prohibits you from use of the "residence premises" as a result of direct damage to neighboring premises by a Peril Insured Against in this policy, we cover the Additional Living Ex- pense and Fair Rental Value loss as provided un- der 1. and 2. above for no more than two weeks. HO 00 03 04 91 Copyright, Insurance Services Office, Inc., 1990 Page 3 of 18 The periods of time under 1., 2. and 3. above are not 3. limited by expiration of this policy. We do not cover loss or expense due to cancellation of a lease or agreement. ADDITIONAL COVERAGES 1. Debris Removal. We will pay your reasonable expense for the removal of: a. Debris of covered property if a Peril Insured Against that applies to the damaged property causes the loss; or b. Ash, dust or particles from a volcanic eruption that has caused direct loss to a building or property contained in a building. This expense is included in the limit of liability that applies to the damaged property. If the amount to be paid for the actual damage to the property plus the debris removal expense is more than the limit of liability for the damaged property, an additional 5% of that limit of liability is available for debris removal expense. We will also pay your reasonable expense, up to $500, for the removal from the "residence prem- ises" of: a. Your tree(s) felled by the peril of Windstorm or Hail; b. Your tree(s) felled by the peril of Weight of Ice, Snow or Sleet; or c. A neighbor's tree(s) felled by a Peril Insured Against under Coverage C; provided the tree(s) damages a covered structure. The $500 limit is the most we will pay in any one loss regardless of the number of fallen trees. 2. Reasonable Repairs. In the event that covered property is damaged by an applicable Peril Insured Against, we will pay the reasonable cost incurred by you for necessary measures taken solely to protect against further damage. If the measures taken involve repair to other damaged property, we will pay for those measures only if that property is covered under this policy and the damage to that property is caused by an applicable Peril Insured Against. This coverage: a. Does not increase the limit of liability that ap- plies to the covered property; b. Does not relieve you of your duties, in case of a loss to covered property, as set forth in SECTION I — CONDITION 2.d. _1 5. Trees, Shrubs and Other Plants. We cover trees, shrubs, plants or lawns, on the "residence prem- ises," for loss caused by the following Perils In- sured Against: Fire or lightning, Explosion, Riot or civil commotion, Aircraft, Vehicles not owned or operated by a resident of the "residence prem- ises," Vandalism or malicious mischief or Theft. We will pay up to 5% of the limit of liability that ap- plies to the dwelling for all trees, shrubs, plants or lawns. No more than $500 of this limit will be available for any one tree, shrub,or plant. We do not cover property grown for "business" purposes. This coverage is additional insurance. Fire Department Service Charge. We will pay up to $500 for your liability assumed by contract or agreement for fire department charges incurred when the fire department is called to save or pro- tect covered property from a Peril Insured Against. We do not cover fire department service charges if the property is located within the limits of the city, municipality or protection district furnishing the fire department response. This coverage is additional insurance. No deducti- ble applies to this coverage. Property Removed. We insure covered property against direct loss from any cause while being re- moved from a premises endangered by a Peril In- sured Against and for no more than 30 days while removed. This coverage does not change the limit of liability that applies to the property being re- moved. 6. Credit Card, Fund Transfer Card, Forgery and Counterfeit Money. We will pay up to $500 for: a. The legal obligation of an "insured" to pay because of the theft or unauthorized use of credit cards issued to or registered in an "in- sured's" name; b. Loss resulting from theft or unauthorized use of a fund transfer card used for deposit, with- drawal or transfer of funds, issued to or regis- tered in an "insured's" name; c. Loss to an "insured" caused by forgery or al- teration of any check or negotiable instrument; and d. Loss to an "insured" through acceptance in good faith of counterfeit United States or Ca- nadian paper currency. Page 4 of 18 Copyright, Insurance Services Office, Inc., 1990 HO 00 03 04 91 We do not cover use of a credit card or fund transfer card: a. By a resident of your household; b. By a person who has been entrusted with ei- ther type of card; or c. If an "insured" has not complied with all terms and conditions under which the cards are is- sued. All loss resulting from a series of acts committed by any one person or in which any one person is concerned or implicated is considered to be one loss. We do not cover loss arising out of "business" use or dishonesty of an "insured." This coverage is additional insurance. No deducti- ble applies to this coverage. Defense: a. We may investigate and settle any claim or suit that we decide is appropriate. Our duty to de- fend a claim or suit ends when the amount we pay for the loss equals our limit of liability. b. If a suit is brought against an "insured" for liability under the Credit Card or Fund Transfer Card coverage, we will provide a defense at our expense by counsel of our choice. c. We have the option to defend at our expense an "insured" or an "insured's" bank against any suit for the enforcement of payment under the Forgery coverage. 7. Loss Assessment. We will pay up to $1000 for your share of loss assessment charged during the policy period against you by a corporation or asso- ciation of property owners, when the assessment is made as a result of direct loss to the property, owned by all members collectively, caused by a Peril Insured Against under COVERAGE A — DWELLING, other than earthquake or land shock waves or tremors before, during or after a volcanic eruption. This coverage applies only to loss assessments charged against you as owner or tenant of the "residence premises." We do not cover loss assessments charged against you or a corporation or association of property owners by any governmental body. The limit of $1000 is the most we will pay with re- spect to any one loss, regardless of the number of assessments. Condition 1. Policy Period, under SECTIONS I AND II CONDITIONS, does not apply to this cov- erage. 8. Collapse. We insure for direct physical loss to covered property involving collapse of a building or any part of a building caused only by one or more of the following: a. Perils Insured Against in COVERAGE C — PERSONAL PROPERTY. These perils apply to covered buildings and personal property for loss insured by this additional coverage; b. Hidden decay; c. Hidden insect or vermin damage; d. Weight of contents, equipment, animals or people; e. Weight of rain which collects on a roof; or f. Use of defective material or methods in con- struction, remodeling or renovation if the col- lapse occurs during the course of the construc- tion, remodeling or renovation. Loss to an awning, fence, patio, pavement, swim- ming pool, underground pipe, flue, drain, cesspool, septic tank, foundation, retaining wall, bulkhead, pier, wharf or dock is not included under items b., c., d., e., and f. unless the loss is a direct result of the collapse of a building. Collapse does not include settling, cracking, shrinking, bulging or expansion. This coverage does not increase the limit of liabil- ity applying to the damaged covered property. 9. Glass or Safety Glazing Material. We cover: a. The breakage of glass or safety glazing mate- rial which is part of a covered building, storm door or storm window: and b. Damage to covered property by glass or safety glazing material which is part of a building, storm door or storm window. This coverage does not include loss on the "resi- dence premises" if the dwelling has been vacant for more than 30 consecutive days immediately before the loss. A dwelling being constructed is not considered vacant. Loss for damage to glass will be settled on the ba- sis of replacement with safety glazing materials when required by ordinance or law. This coverage does not increase the limit of liabil- ity that applies to the damaged property. HO 00 03 04 91 Copyright, Insurance Services Office, Inc., 1990 Page 5 of 18 10. Landlord's Furnishings. We will pay up to $2500 for your appliances, carpeting and other household furnishings, in an apartment on the "residence premises" regularly rented or held for rental to oth- ers by an "insured," for loss caused only by the following Perils Insured Against: a. Fire or lightning. b. Windstorm or hail. This peril does not include loss to the property contained in a building caused by rain, snow, sleet, sand or dust unless the direct force of wind or hail damages the building causing an opening in a roof or wall and the rain, snow, sleet, sand or dust enters through this opening. This peril includes loss to watercraft and their trailers, furnishings, equipment, and outboard engines or motors, only while inside a fully en- closed building. c. Explosion. d. Riot or civil commotion. e. Aircraft, including self-propelled missiles and spacecraft. f. Vehicles. g. Smoke, meaning sudden and accidental dam- age from smoke. This peril does not include loss caused by smoke from agricultural smudging or industrial operations. h. Vandalism or malicious mischief. L Falling objects. This peril does not include loss to property contained in a building unless the roof or an outside wall of the building is first damaged by a falling object. Damage to the falling object it- self is not included. j. Weight of ice, snow or sleet which causes damage to property contained in a building. k. Accidental discharge or overflow of water or steam from within a plumbing, heating, air conditioning or automatic fire protective sprin- kler system or from within a household appli- ance. This peril does not include loss: (1) To the system or appliance from which the water or steam escaped; (2) Caused by or resulting from freezing except as provided in the peril of freezing below; or (3) On the "residence premises" caused by accidental discharge or overflow which oc- curs off the "residence premises." In this peril, a plumbing system does not in- clude a sump, sump pump or related equip- ment. I. Sudden and accidental tearing apart, cracking, burning or bulging of a steam or hot water heating system, an air conditioning or automatic Fre protective sprinkler system, or an appliance for heating water. We do not cover loss caused by or resulting from freezing under this peril. m. Freezing of a plumbing, heating, air condition- ing or automatic fire protective sprinkler system or of a household appliance. This peril does not include loss on the "resi- dence premises" while the dwelling is unoccu- pied, unless you have used reasonable care to: (1) Maintain heat in the building; or (2) Shut off the water supply and drain the system and appliances of water. n. Sudden and accidental damage from artificially generated electrical current. This peril does not include loss to a tube, tran- sistor or similar electronic component. o. Volcanic eruption other than loss caused by earthquake, land shock waves or tremors. The $2500 limit is the most we will pay in any one loss regardless of the number of appliances, car- peting or other household furnishings involved in the loss. SECTION I — PERILS INSURED AGAINST COVERAGE A — DWELLING and COVERAGE B — 1. Involving collapse, other than as provided in Addi- OTHER STRUCTURES tional Coverage 8.; We insure against risk of direct loss to property de- 2. Caused by: scribed in Coverages A and B only if that loss is a physical loss to property, We do not insure, however, for loss: Page 6 of 18 Copyright, Insurance Services Office, Inc., 1990 HO 00 03 04 91 a. Freezing of a plumbing, heating, air condition- ing or automatic fire protective sprinkler system or of a household appliance, or by discharge, leakage or overflow from within the system or appliance caused by freezing. This exclusion applies only while the dwelling is vacant, unoc- cupied or being constructed, unless you have used reasonable care to: (1) Maintain heat in the building; or (2) Shut off the water supply and drain the system and appliances of water; b. Freezing, thawing, pressure or weight of water or ice, whether driven by wind or not, to a: (1) Fence, pavement, patio or swimming pool; (2) Foundation, retaining wall, or bulkhead; or (3) Pier, wharf or dock; c. Theft in or to a dwelling under construction, or of materials and supplies for use in the con- struction until the dwelling is finished and oc- cupied; d. Vandalism and malicious mischief if the dwell- ing has been vacant for more than 30 consecu- tive days immediately before the loss. A dwell- ing being constructed is not considered vacant; e. Any of the following: (1) Wear and tear, marring, deterioration; (2) Inherent vice, latent defect, mechanical breakdown; (3) Smog, rust or other corrosion, mold, wet or dry rot; (4) Smoke from agricultural smudging or in- dustrial operations; (5) Discharge, dispersal, seepage, migration, release or escape of pollutants unless the discharge, dispersal, seepage, migration, release or escape is itself caused by a Peril Insured Against under Coverage C of this policy. Pollutants means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes mate- rials to be recycled, reconditioned or re- claimed; (6) Settling, shrinking, bulging or expansion, including resultant cracking, of pavements, patios, foundations, walls, floors, roofs or ceilings; (7) Birds, vermin, rodents, or insects; or (8) Animals owned or kept by an "insured." If any of these cause water damage not other- wise excluded, from a plumbing, heating, air conditioning or automatic fire protective sprin- kler system or household appliance, we cover loss caused by the water including the cost of tearing out and replacing any part of a building necessary to repair the system or appliance. We do not cover loss to the system or appli- ance from which this water escaped. 3. Excluded under Section I — Exclusions. Under items 1. and 2., any ensuing loss to property described in Coverages A and B not excluded or excepted in this policy is covered. COVERAGE C — PERSONAL PROPERTY We insure for direct physical loss to the property de- scribed in Coverage C caused by a peril listed below unless the loss is excluded in SECTION I — EXCLUSIONS. 1. Fire or lightning. 2. Windstorm or hail. This peril does not include loss to the property contained in a building caused by rain, snow, sleet, sand or dust unless the direct force of wind or hail damages the building causing an opening in a roof or wall and the rain, snow, sleet, sand or dust enters through this opening. This peril includes loss to watercraft and their trail- ers, furnishings, equipment, and outboard engines or motors, only while inside a fully enclosed build- ing. 3. Explosion. 4. Riot or civil commotion. 5. Aircraft, including self-propelled missiles and spacecraft. 6. Vehicles. 7. Smoke, meaning sudden and accidental damage from smoke. This peril does not include loss caused by smoke from agricultural smudging or industrial operations. B. Vandalism or malicious mischief. 9. Theft, including attempted theft and loss of prop- erty from a known place when it is likely that the property has been stolen. This peril does not include loss caused by theft: a. Committed by an "insured"; b. In or to a dwelling under construction, or of materials and supplies for use in the construc- tion until the dwelling is finished and occupied; or HO 00 03 04 91 Copyright, Insurance Services Office, Inc., 1990 Page 7 of 18 c. From that part of a "residence premises" rented by an "insured" to other than an "insured." This peril does not include loss caused by theft that occurs off the residence premises" of: a. Property while at any other residence owned by, rented to, or occupied by an "insured," ex- cept while an "insured" is temporarily living there. Property of a student who is an "insured" is covered while at a residence away from home if the student has been there at any time during the 45 days immediately before the loss; b. Watercraft, and their furnishings, equipment and outboard engines or motors; or c. Trailers and campers 10. Falling objects. This peril does not include loss to property con- tained in a building unless the roof or an outside wall of the building is first damaged by a falling object. Damage to the falling object itself is not in- cluded. 11. Weight of ice, snow or sleet which causes dam- age to property contained in a building. 12.Accidental discharge or overflow of water or steam from within a plumbing, heating, air condi- tioning or automatic fire protective sprinkler system or from within a household appliance. This peril does not include loss: a. To the system or appliance from which the water or steam escaped; b. Caused by or resulting from freezing except as provided in the peril of freezing below; or c. On the 'residence premises" caused by acci- dental discharge or overflow which occurs off the residence premises." In this peril, a plumbing system does not include a sump, sump pump or related equipment. 13. Sudden and accidental tearing apart, cracking, burning or bulging of a steam or hot water heat- ing system, an air conditioning or automatic fire protective sprinkler system, or an appliance for heating water. We do not cover loss caused by or resulting from freezing under this peril. 14. Freezing of a plumbing, heating, air conditioning or automatic fire protective sprinkler system or of a household appliance. This peril does not include loss on the 'residence premises" while the dwelling is unoccupied, unless you have used reasonable care to: a. Maintain heat in the building; or b. Shut off the water supply and drain the system and appliances of water. 15.Sudden and accidental damage from artificially generated electrical current. This peril does not include loss to a tube, transistor or similar electronic component. 16.Volcanic eruption other than loss caused by earthquake, land shock waves or tremors. SECTION I — EXCLUSIONS 1. We do not insure for loss caused directly or indi- rectly by any of the following. Such loss is ex- cluded regardless of any other cause or event contributing concurrently or in any sequence to the loss. a. Ordinance or Law, meaning enforcement of any ordinance or law regulating the construc- tion, repair, or demolition of a building or other structure, unless specifically provided under this policy. b. Earth Movement, meaning earthquake in- cluding land shock waves or tremors before, during or after a volcanic eruption; landslide; mine subsidence; mudflow; earth sinking, rising or shifting; unless direct loss by: (1) Fire; (2) Explosion; or (3) Breakage of glass or safety glazing material which is part of a building, storm door or storm window; ensues and then we will pay only for the ensu- ing loss. This exclusion does not apply to loss by theft. c. Water Damage, meaning: (1) Flood, surface water, waves, tidal water, overflow of a body of water, or spray from any of these, whether or not driven by wind; (2) Water which backs up through sewers or drains or which overflows from a sump; or Page 8 of 18 Copyright, Insurance Services Office, Inc., 1990 HO 00 03 04 91 (3) Water below the surface of the ground, including water which exerts pressure on or seeps or leaks through a building, sidewalk, driveway, foundation, swimming pool or other structure. Direct loss by fire, explosion or theft resulting from water damage is covered. d. Power Failure, meaning the failure of power or other utility service if the failure takes place off the "residence premises." But, if a Peril Insured Against ensues on the "residence premises," we will pay only for that ensuing loss. e. Neglect, meaning neglect of the "insured" to use all reasonable means to save and preserve property at and after the time of a loss. f. War, including the following and any conse- quence of any of the following: (1) Undeclared war, civil war, insurrection, rebellion or revolution; (2) Warlike act by a military force or military personnel; or (3) Destruction, seizure or use for a military purpose. Discharge of a nuclear weapon will be deemed a warlike act even if accidental. g. Nuclear Hazard, to the extent set forth in the Nuclear Hazard Clause of SECTION I — CONDITIONS. h. Intentional Loss, meaning any loss arising out of any act committed: (1) By or at the direction of an "insured"; and (2) With the intent to cause a loss. 2. We do not insure for loss to property described in Coverages A and B caused by any of the follow- ing. However, any ensuing loss to property de- scribed in Coverages A and B not excluded or ex- cepted in this policy is covered. a. Weather conditions. However, this exclusion only applies if weather conditions contribute in any way with a cause or event excluded in paragraph 1. above to produce the loss; b. Acts or decisions, including the failure to act or decide, of any person, group, organization or governmental body; c. Faulty, inadequate or defective: (1) Planning, zoning, development, surveying, siting; (2) Design, specifications, workmanship, repair, construction, renovation, remodeling, grad- ing, compaction; (3) Materials used in repair, construction, reno- vation or remodeling; or (4) Maintenance; of part or all of any property whether on or off the "residence premises." SECTION I — CONDITIONS 1. Insurable Interest and Limit of Liability. Even if more than one person has an insurable interest in the property covered, we will not be liable in any one loss: a. To the "insured" for more than the amount of the "insured's" interest at the time of loss; or b. For more than the applicable limit of liability. 2. Your Duties After Loss. In case of a loss to cov- ered property, you must see that the following are done: a. Give prompt notice to us or our agent; b. Notify the police in case of loss by theft; c. Notify the credit card or fund transfer card company in case of loss under Credit Card or Fund Transfer Card coverage; d. Protect the property from further damage. If repairs to the property are required, you must: (1) Make reasonable and necessary repairs to protect the property; and (2) Keep an accurate record of repair ex- penses; e. Prepare an inventory of damaged personal property showing the quantity, description, ac- tual cash value and amount of loss. Attach all bills, receipts and related documents that justify the figures in the inventory; f. As often as we reasonably require: (1) Show the damaged property; (2) Provide us with records and documents we request and permit us to make copies; and (3) Submit to examination under oath, while not in the presence of any other "insured," and sign the same; HO 00 03 04 91 Copyright, Insurance Services Office, Inc., 1990 Page 9 of 18 Send to us, within 60 days after our request, your signed, sworn proof of loss which sets forth, to the best of your knowledge and belief: (1) The time and cause of loss; (2) The interest of the "insured" and all others in the property involved and all liens on the property; (3) Other insurance which may cover the loss; (4) Changes in title or occupancy of the prop- erty during the term of the policy; (5) Specifications of damaged buildings and detailed repair estimates; (6) The inventory of damaged personal prop- erty described in 2.e. above; (7) Receipts for additional living expenses incurred and records that support the fair rental value loss; and (8) Evidence or affidavit that supports a claim under the Credit Card, Fund Transfer Card, Forgery and Counterfeit Money coverage, stating the amount and cause of loss. 3. Loss Settlement. Covered property losses are settled as follows: a. Property of the following types: (1) Personal property; (2) Awnings, carpeting, household appliances, outdoor antennas and outdoor equipment, whether or not attached to buildings; and (3) Structures that are not buildings; at actual cash value at the time of loss but not more than the amount required to repair or re- place. b. Buildings under Coverage A or B at replace- ment cost without deduction for depreciation, subject to the following: (1) If, at the time of loss, the amount of insur- ance in this policy on the damaged building is 80% or more of the full replacement cost of the building immediately before the loss, we will pay the cost to repair or replace, af- ter application of deductible and without de- duction for depreciation, but not more than the least of the following amounts: (a) The limit of liability under this policy that applies to the building; (b) The replacement cost of that part of the building damaged for like construction and use on the same premises; or (c) The necessary amount actually spent to repair or replace the damaged building. (2) If, at the time of loss, the amount of insur- ance in this policy on the damaged building is less than 80% of the full replacement cost of the building immediately before the loss, we will pay the greater of the following amounts, but not more than the limit of li- ability under this policy that applies to the building: (a) The actual cash value of that part of the building damaged; or (b) That proportion of the cost to repair or replace, after application of deductible and without deduction for depreciation, that part of the building damaged, which the total amount of insurance in this policy on the damaged building bears to 80% of the replacement cost of the building. (3) To determine the amount of insurance re- quired to equal 80% of the full replacement cost of the building immediately before the loss, do not include the value of: (a) Excavations, foundations, piers or any supports which are below the undersur- face of the lowest basement floor; (b) Those supports in (a) above which are below the surface of the ground inside the foundation walls, if there is no basement; and (c) Underground flues, pipes, wiring and drains. (4) We will pay no more than the actual cash value of the damage until actual repair or replacement is complete. Once actual re- pair or replacement is complete, we will settle the loss according to the provisions of b.(1) and b.(2) above. However, if the cost to repair or replace the damage is both: (a) Less than 5% of the amount of insur- ance in this policy on the building; and (b) Less than $2500; we will settle the loss according to the pro- visions of b.(1) and b.(2) above whether or not actual repair or replacement is com- plete. Page 10 of 18 Copyright, Insurance Services Office, Inc., 1990 HO 00 03 04 91 (5) You may disregard the replacement cost loss settlement provisions and make claim under this policy for loss or damage to buildings on an actual cash value basis. You may then make claim within 180 days after loss for any additional liability accord- ing to the provisions of this Condition 3. Loss Settlement. 4. Loss to a Pair or Set. In case of loss to a pair or set we may elect to: a. Repair or replace any part to restore the pair or set to its value before the loss; or b. Pay the difference between actual cash value of the property before and after the loss. 5. Glass Replacement. Loss for damage to glass caused by a Peril Insured Against will be settled on the basis of replacement with safety glazing materials when required by ordinance or law. 6. Appraisal. If you and we fail to agree on the amount of loss, either may demand an appraisal of the loss. In this event, each party will choose a competent appraiser within 20 days after receiving a written request from the other. The two apprais- ers will choose an umpire. If they cannot agree upon an umpire within 15 days, you or we may re- quest that the choice be made by a judge of a court of record in the state where the "residence premises" is located. The appraisers will sepa- rately set the amount of loss. If the appraisers submit a written report of an agreement to us, the amount agreed upon will be the amount of loss. If they fail to agree, they will submit their differences to the umpire. A decision agreed to by any two will set the amount of loss. Each party will: a. Pay its own appraiser; and b. Bear the other expenses of the appraisal and umpire equally. 7. Other Insurance. If a loss covered by this policy is also covered by other insurance, we will pay only the proportion of the loss that the limit of liability that applies under this policy bears to the total amount of insurance covering the loss. 8. Suit Against Us. No action can be brought unless the policy provisions have been complied with and the action is started within one year after the date of loss. 9. Our Option. If we give you written notice within 30 days after we receive your signed, sworn proof of loss, we may repair or replace any part of the damaged property with like property. 10. Loss Payment. We will adjust all losses with you. We will pay you unless some other person is named in the policy or is legally entitled to receive payment. Loss will be payable 60 days after we receive your proof of loss and: a. Reach an agreement with you; b. There is an entry of a final judgment; or c. There is a filing of an appraisal award with us. 11.Abandonment of Property. We need not accept any property abandoned by an "insured." 12. Mortgage Clause. The word "mortgagee" includes trustee. If a mortgagee is named in this policy, any loss payable under Coverage A or B will be paid to the mortgagee and you, as interests appear. If more than one mortgagee is named, the order of pay- ment will be the same as the order of precedence of the mortgages. If we deny your claim, that denial will not apply to a valid claim of the mortgagee, if the mortgagee: a. Notifies us of any change in ownership, occu- pancy or substantial change in risk of which the mortgagee is aware; b. Pays any premium due under this policy on demand if you have neglected to pay the pre- mium; and c. Submits a signed, sworn statement of loss within 60 days after receiving notice from us of your failure to do so. Policy conditions relating to Appraisal, Suit Against Us and Loss Pay- ment apply to the mortgagee. If we decide to cancel or not to renew this policy, the mortgagee will be notified at least 10 days be- fore the date cancellation or nonrenewal takes ef- fect. If we pay the mortgagee for any loss and deny payment to you: a. We are subrogated to all the rights of the mort- gagee granted under the mortgage on the property; or b. At our option, we may pay to the mortgagee the whole principal on the mortgage plus any ac- crued interest. In this event, we will receive a full assignment and transfer of the mortgage and all securities held as collateral to the mort- gage debt. Subrogation will not impair the right of the mortga- gee to recover the full amount of the mortgagee's claim. HO 00 03 04 91 Copyright, Insurance Services Office, Inc., 1990 Page 11 of 18 13.No Benefit to Bailee. We will not recognize any assignment or grant any coverage that benefits a person or organization holding, storing or moving property for a fee regardless of any other provision of this policy. 14. Nuclear Hazard Clause. a. "Nuclear Hazard" means any nuclear reaction, radiation, or radioactive contamination, all whether controlled or uncontrolled or however caused, or any consequence of any of these. b. Loss caused by the nuclear hazard will not be considered loss caused by fire, explosion, or smoke, whether these perils are specifically named in or otherwise included within the Per- ils Insured Against in Section I. c. This policy does not apply under Section I to loss caused directly or indirectly by nuclear hazard, except that direct loss by fire resulting from the nuclear hazard is covered. 15.Recovered Property. If you or we recover any property for which we have made payment under this policy, you or we will notify the other of the re- covery. At your option, the property will be re- turned to or retained by you or it will become our property. If the recovered property is returned to or retained by you, the loss payment will be adjusted based on the amount you received for the recov- ered property. 16.Volcanic Eruption Period. One or more volcanic eruptions that occur within a 72 -hour period will be considered as one volcanic eruption. SECTION II — LIABILITY COVERAGES COVERAGE E — Personal Liability If a claim is made or a suit is brought against an "in- sured" for damages because of "bodily injury" or "property damage" caused by an "occurrence" to which this coverage applies, we will: 1. Pay up to our limit of liability for the damages for which the "insured" is legally liable. Damages in- clude prejudgment interest awarded against the "insured"; and 2. Provide a defense at our expense by counsel of our choice, even if the suit is groundless, false or fraudulent. We may investigate and settle any claim or suit that we decide is appropriate. Our duty to settle or defend ends when the amount we pay for damages resulting from the "occurrence" equals our limit of liability. COVERAGE F — Medical Payments To Others We will pay the necessary medical expenses that are incurred or medically ascertained within three years from the date of an accident causing "bodily injury." Medical expenses means reasonable charges for medical, surgical, x-ray, dental, ambulance, hospital, professional nursing, prosthetic devices and funeral services. This coverage does not apply to you or regular residents of your household except "residence employees." As to others, this coverage applies only: 1. To a person on the "insured location" with the permission of an "insured"; or 2. To a person off the "insured location," if the "bodily injury": a. Arises out of a condition on the "insured loca- tion" or the ways immediately adjoining; b. Is caused by the activities of an "insured"; c. Is caused by a "residence employee" in the course of the "residence employee's" employ- ment by an "insured"; or d. Is caused by an animal owned by or in the care of an "insured." SECTION II — EXCLUSIONS 1. Coverage E — Personal Liability and Coverage F — Medical Payments to Others do not apply to "bodily injury" or "property damage": a. Which is expected or intended by the "insured"; b. Arising out of or in connection with a "business" engaged in by an "insured." This exclusion ap- plies but is not limited to an act or omission, regardless of its nature or circumstance, in- volving a service or duty rendered, promised, owed, or implied to be provided because of the nature of the "business"; Page 12 of 18 Copyright, Insurance Services Office, Inc., 1990 HO 00 03 04 91 c. Arising out of the rental or holding for rental of any part of any premises by an "insured." This exclusion does not apply to the rental or hold- ing for rental of an "insured location": (1) On an occasional basis if used only as a residence; (2) In part for use only as a residence, unless a single family unit is intended for use by the occupying family to lodge more than two roomers or boarders; or (3) In part, as an office, school, studio or pri- vate garage; d. Arising out of the rendering of or failure to render professional services; e. Arising out of a premises: (1) Owned by an "insured"; (2) Rented to an "insured"; or (3) Rented to others by an "insured"; that is not an "insured location"; f. Arising out of: (1) The ownership, maintenance, use, loading or unloading of motor vehicles or all other motorized land conveyances, including trailers, owned or operated by or rented or loaned to an "insured"; (2) The entrustment by an "insured" of a motor vehicle or any other motorized land con- veyance to any person; or (3) Vicarious liability, whether or not statutorily imposed, for the actions of a child or minor using a conveyance excluded in paragraph (1) or (2) above. This exclusion does not apply to: (1) A trailer not towed by or carried on a mo- torized land conveyance. (2) A motorized land conveyance designed for recreational use off public roads, not sub- ject to motor vehicle registration and: (a) Not owned by an "insured"; or (b) Owned by an "insured" and on an "in- sured location"; (3) A motorized golf cart when used to play golf on a golf course; (4) A vehicle or conveyance not subject to motor vehicle registration which is: (a) Used to service an "insured's" resi- dence; (b) Designed for assisting the handicapped; or (c) In dead storage on an "insured location"; g. Arising out of: (1) The ownership, maintenance, use, loading or unloading of an excluded watercraft de- scribed below; (2) The entrustment by an "insured" of an ex- cluded watercraft described below to any person; or (3) Vicarious liability, whether or not statutorily imposed, for the actions of a child or minor using an excluded watercraft described be- low. Excluded watercraft are those that are princi- pally designed to be propelled by engine power or electric motor, or are sailing vessels, whether owned by or rented to an "insured." This exclusion does not apply to watercraft: (1) That are not sailing vessels and are pow- ered by: (a) inboard or inboard-outdrive engine or motor power of 50 horsepower or less not owned by an "insured"; (b) Inboard or inboard-outdrive engine or motor power of more than 50 horse- power not owned by or rented to an "in- sured"; (c) One or more outboard engines or mo- tors with 25 total horsepower or less; (d) One or more outboard engines or mo- tors with more than 25 total horsepower if the outboard engine or motor is not owned by an "insured' (e) Outboard engines or motors of more than 25 total horsepower owned by an "insured" if: (i) You acquire them prior to the policy period; and (a) You declare them at policy incep- tion; or (b) Your intention to insure is re- ported to us in writing within 45 days after you acquire the out- board engines or motors. (ii) You acquire them during the policy period. This coverage applies for the policy pe- riod. (2) That are sailing vessels, with or without auxiliary power: (a) Less than 26 feet in overall length; (b) 26 feet or more in overall length, not owned by or rented to an "insured." HO 00 03 04 91 Copyright, Insurance Services Office, Inc., 1990 Page 13 of 18 (3) That are stored; h. Arising out of: (1) The ownership, maintenance, use, loading or unloading of an aircraft; (2) The entrustment by an "insured" of an air- craft to any person; or (3) Vicarious liability, whether or not statutorily imposed, for the actions of a child or minor using an aircraft. An aircraft means any contrivance used or de- signed for flight, except model or hobby aircraft not used or designed to carry people or cargo; 1. Caused directly or indirectly by war, including the following and any consequence of any of the following: (1) Undeclared war, civil war, insurrection, rebellion or revolution; (2) Warlike act by a military force or military personnel; or (3) Destruction, seizure or use for a military purpose. Discharge of a nuclear weapon will be deemed a warlike act even if accidental; j. Which arises out of the transmission of a com- municable disease by an "insured"; k. Arising out of sexual molestation, corporal punishment or physical or mental abuse; or 1. Arising out of the use, sale, manufacture, de- livery, transfer or possession by any person of a Controlled Substance(s) as defined by the Federal Food and Drug Law at 21 U.S.C.A. Sections 811 and 812. Controlled Substances include but are not limited to cocaine, LSD, marijuana and all narcotic drugs. However, this exclusion does not apply to the legitimate use of prescription drugs by a person following the orders of a licensed physician. Exclusions e., f., g., and h. do not apply to "bodily injury" to a "residence employee" arising out of and in the course of the "residence employee's" employment by an "insured." 2. Coverage E — Personal Liability, does not apply to: a. Liability: (1) For any loss assessment charged against you as a member of an association, corpo- ration or community of property owners; (2) Under any contract or agreement. However, this exclusion does not apply to written contracts: (a) That directly relate to the ownership, maintenance or use of an "insured loca- tion" or (b) Where the liability of others is assumed by the "insured" prior to an "occurrence"; unless excluded in (1) above or elsewhere in this policy; b. "Property damage" to property owned by the "insured"; c. "Property damage" to property rented to, occu- pied or used by or in the care of the "insured." This exclusion does not apply to "property damage" caused by fire, smoke or explosion; d. "Bodily injury' to any person eligible to receive any benefits: (1) Voluntarily provided; or (2) Required to be provided; by the "insured" under any: (1) Workers' compensation law; (2) Non -occupational disability law; or (3) Occupational disease law; e. "Bodily injury" or "property damage" for which an "insured" under this policy: (1) Is also an insured under a nuclear energy liability policy; or (2) Would be an insured under that policy but for the exhaustion of its limit of liability. A nuclear energy liability policy is one issued by: (1) American Nuclear Insurers; (2) Mutual Atomic Energy Liability Underwrit- ers; (3) Nuclear Insurance Association of Canada; or any of their successors; or f. "Bodily injury" to you or an "insured" within the meaning of part a. or b. of "insured" as defined. 3. Coverage F — Medical Payments to Others, does not apply to "bodily injury": a. To a "residence employee" if the "bodily injury": (1) Occurs off the "insured location"; and (2) Does not arise out of or in the course of the "residence employee's" employment by an "insured" Page 14 of 18 Copyright, Insurance Services Office, Inc., 1990 HO 00 03 04 91 b. To any person eligible to receive benefits: (1) Voluntarily provided; or (2) Required to be provided; under any: (1) Workers' compensation law; (2) Non -occupational disability law; or (3) Occupational disease law; c. From any: (1) Nuclear reaction; (2) Nuclear radiation; or (3) Radioactive contamination; all whether controlled or uncontrolled or how- evercaused;or (4) Any consequence of any of these; or d. To any person, other than a "residence em- ployee" of an "insured," regularly residing on any part of the "insured location" SECTION II — ADDITIONAL COVERAGES We cover the following in addition to the limits of li- ability: 1. Claim Expenses. We pay: a. Expenses we incur and costs taxed against an "insured" in any suit we defend; b. Premiums on bonds required in a suit we de- fend, but not for bond amounts more than the limit of liability for Coverage E. We need not apply for or furnish any bond; c. Reasonable expenses incurred by an "insured" at our request, including actual loss of earnings (but not loss of other income) up to $50 per day, for assisting us in the investigation or de- fense of a claim or suit; and d. Interest on the entire judgment which accrues after entry of the judgment and before we pay or tender, or deposit in court that part of the judgment which does not exceed the limit of li- ability that applies. 2. First Aid Expenses. We will pay expenses for first aid to others incurred by an "insured" for "bodily injury" covered under this policy. We will not pay for first aid to you or any other "insured." 3. Damage to Property of Others. We will pay, at replacement cost, up to $500 per "occurrence" for "property damage" to property of others caused by an "insured." We will not pay for "property damage": a. To the extent of any amount recoverable under Section I of this policy; b. Caused intentionally by an "insured" who is 13 years of age or older; c. To property owned by an "insured"; d. To property owned by or rented to a tenant of an "insured" or a resident in your household; or e. Arising out of: (1) A "business" engaged in by an "insured"; (2) Any act or omission in connection with a premises owned, rented or controlled by an "insured," other than the "insured location"; or (3) The ownership, maintenance, or use of aircraft, watercraft or motor vehicles or all other motorized land conveyances. This exclusion does not apply to a motor- ized land conveyance designed for recrea- tional use off public roads, not subject to motor vehicle registration and not owned by an "insured" 4. Loss Assessment. We will pay up to $1000 for your share of loss assessment charged during the policy period against you by a corporation or asso- ciation of property owners, when the assessment is made as a result of: a. "Bodily injury" or "property damage" not ex- cluded under Section II of this policy; or b. Liability for an act of a director, officer or trus- tee in the capacity as a director, officer or trustee, provided: (1) The director, officer or trustee is elected by the members of a corporation or association of property owners; and (2) The director, officer or trustee serves with- out deriving any income from the exercise of duties which are solely on behalf of a corporation or association of property own- ers. This coverage applies only to loss assessments charged against you as owner or tenant of the "residence premises" HO 00 03 04 91 Copyright, Insurance Services Office, Inc., 1990 Page 15 of 18 We do not cover loss assessments charged against you or a corporation or association of property owners by any governmental body. Regardless of the number of assessments, the limit of $1000 is the most we will pay for loss aris- ing out of: a. One accident, including continuous or repeated exposure to substantially the same general harmful condition; or b. A covered act of a director, officer or trustee. An act involving more than one director, officer or trustee is considered to be a single act. The following do not apply to this coverage: 1. Section II — Coverage E — Personal Liability Exclusion 2.a.(1); 2. Condition 1. Policy Period, under SECTIONS I AND II — CONDITIONS. SECTION II — CONDITIONS 1. Limit of Liability. Our total liability under Cover- age E for all damages resulting from any one "oc- currence" will not be more than the limit of liability for Coverage E as shown in the Declarations. This limit is the same regardless of the number of "in- sureds," claims made or persons injured. All "bod- ily injury" and "property damage" resulting from any one accident or from continuous or repeated exposure to substantially the same general harm- ful conditions shall be considered to be the result of one "occurrence." Our total liability under Coverage F for all medical expense payable for "bodily injury" to one person as the result of one accident will not be more than the limit of liability for Coverage F as shown in the Declarations. 2. Severability of Insurance. This insurance applies separately to each "insured." This condition will not increase our limit of liability for any one "occur- rence." 3. Duties After Loss. In case of an accident or "oc- currence," the "insured" will perform the following duties that apply. You will help us by seeing that these duties are performed: c. At our request, help us: (1) To make settlement; (2) To enforce any right of contribution or in- demnity against any person or organization who may be liable to an "insured'; (3) With the conduct of suits and attend hear- ings and trials; and (4) To secure and give evidence and obtain the attendance of witnesses; d. Under the coverage — Damage to Property of Others — submit to us within 60 days after the loss, a sworn statement of loss and show the damaged property, if in the "insured's" control; e. The "insured" will not, except at the "insured's" own cost, voluntarily make payment, assume obligation or incur expense other than for first aid to others at the time of the "bodily injury." 4. Duties of an Injured Person — Coverage F — Medical Payments to Others. a. Give written notice to us or our agent as soon as is practical, which sets forth: (1) The identity of the policy and "insured"; (2) Reasonably available information on the time, place and circumstances of the acci- dent or "occurrence'; and (3) Names and addresses of any claimants and 5. witnesses; b. Promptly forward to us every notice, demand, summons or other process relating to the acci- dent or "occurrence" The injured person or someone acting for the in- jured person will: a. Give us written proof of claim, under oath if required, as soon as is practical; and b. Authorize us to obtain copies of medical re- ports and records. The injured person will submit to a physical exam by a doctor of our choice when and as often as we reasonably require. Payment of Claim — Coverage F — Medical Payments to Others. Payment under this cover- age is not an admission of liability by an "insured" or us. Page 16 of 18 Copyright, Insurance Services Office, Inc., 1990 HO 00 03 04 91 6. Suit Against Us. No action can be brought 7. Bankruptcy of an Insured. Bankruptcy or insol- against us unless there has been compliance with vency of an "insured" will not relieve us of our obli- the policy provisions. gations under this policy. No one will have the right to join us as a party to 8. Other Insurance — Coverage E — Personal Li. any action against an "insured" Also, no action ability. This insurance is excess over other valid with respect to Coverage E can be brought against and collectible insurance except insurance written us until the obligation of the "insured" has been specifically to cover as excess over the limits of li- determined by final judgment or agreement signed ability that apply in this policy. by us. SECTIONS 1 AND II — CONDITIONS 1. Policy Period. This policy applies only to loss in Section I or "bodily injury" or "property damage" in Section II, which occurs during the policy period. 2. Concealment or Fraud. The entire policy will be void if, whether before or after a loss, an "insured" has: a. Intentionally concealed or misrepresented any material fact or circumstance; b. Engaged in fraudulent conduct; or c. Made false statements; relating to this insurance. 3. Liberalization Clause. If we make a change which broadens coverage under this edition of our policy without additional premium charge, that change will automatically apply to your insurance as of the date we implement the change in your state, provided that this implementation date falls within 60 days prior to or during the policy period stated in the Declarations. This Liberalization Clause does not apply to changes implemented through introduction of a subsequent edition of our policy. 4. Waiver or Change of Policy Provisions. A waiver or change of a provision of this policy must be in writing by us to be valid. Our request for an appraisal or examination will not waive any of our rights. 5. Cancellation. a. You may cancel this policy at any time by re- turning it to us or by letting us know in writing of the date cancellation is to take effect. b. We may cancel this policy only for the reasons stated below by letting you know in writing of the date cancellation takes effect. This cancel- lation notice may be delivered to you, or mailed to you at your mailing address shown in the Declarations. Proof of mailing will be sufficient proof of no- tice. (1) When you have not paid the premium, we may cancel at any time by letting you know at least 10 days before the date cancellation takes effect. (2) When this policy has been in effect for less than 60 days and is not a renewal with us, we may cancel for any reason by letting you know at least 10 days before the date can- cellation takes effect. (3) When this policy has been in effect for 60 days or more, or at any time if it is a re- newal with us, we may cancel: (a) If there has been a material misrepre- sentation of fact which if known to us would have caused us not to issue the policy; or (b) If the risk has changed substantially since the policy was issued. This can be done by letting you know at least 30 days before the date cancellation takes effect. (4) When this policy is written for a period of more than one year, we may cancel for any reason at anniversary by letting you know at least 30 days before the date cancellation takes effect. c. When this policy is cancelled, the premium for the period from the date of cancellation to the expiration date will be refunded pro rata. d. If the return premium is not refunded with the notice of cancellation or when this policy is re- turned to us, we will refund it within a reason- able time after the date cancellation takes ef- fect. 6. Nonrenewal. We may elect not to renew this policy. We may do so by delivering to you, or mailing to you at your mailing address shown in the Declarations, written notice at least 30 days before the expiration date of this policy. Proof of mailing will be sufficient proof of notice. 7. Assignment. Assignment of this policy will not be valid unless we give our written consent. HO 00 03 04 91 Copyright, Insurance Services Office, Inc., 1990 Page 17 of 18 8. Subrogation. An "insured" may waive in writing before a loss all rights of recovery against any person. If not waived, we may require an assign- ment of rights of recovery for a loss to the extent that payment is made by us. If an assignment is sought, an "insured" must sign and deliver all related papers and cooperate with us. Subrogation does not apply under Section II to Medical Payments to Others or Damage to Prop- erty of Others. 9. Death. If any person named in the Declarations or the spouse, if a resident of the same household, dies: a. We insure the legal representative of the de- ceased but only with respect to the premises and property of the deceased covered under the policy at the time of death; b. 'Insured" includes: (1) Any member of your household who is an "insured" at the time of your death, but only while a resident of the "residence prem- ises"; and (2) With respect to your property, the person having proper temporary custody of the property until appointment and qualification of a legal representative. Page 18 of 18 Copyright, Insurance Services Office, Inc., 1990 HO 00 03 04 91 HOMEOWNERS HO 01 04 02 00 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY SPECIAL PROVISIONS - CALIFORNIA SECTION I — PROPERTY COVERAGES The exclusion of property described in 3.a. and 3.1b. COVERAGE C — PERSONAL PROPERTY above applies only while the property is in or upon the vehicle or conveyance. SPECIAL LIMITS OF LIABILITY We do cover vehicles or conveyances not subject to Items 10. and 11. are deleted and replaced by the motor vehicle registration which are: following (These are Items 7. and 8. in Form HO 00 08): a. Used to service an "insured's" residence; or 10.$1,000 for loss to electronic apparatus, while in or upon a motor vehicle or other motorized land con- veyance, if the electronic apparatus is equipped to be operated by power from the electrical system of the vehicle or conveyance while retaining its capa- bility of being operated by other sources of power. Electronic apparatus includes: a. Accessories or antennas; or b. Tapes, wires, records, discs or other media; for use with any electronic apparatus described in this Item 10. 11.$1,000 for loss to electronic apparatus, while not in or upon a motor vehicle or other motorized land conveyance, if the electronic apparatus: a. Is equipped to be operated by power from the electrical system of the vehicle or conveyance while retaining its capability of being operated by other sources of power; b. Is away from the "residence premises"; and c. Is used at any time or in any manner for any "business" purpose. Electronic apparatus includes: a. Accessories and antennas; or b. Tapes, wires, records, discs or other media; for use with any electronic apparatus described in this Item 11. PROPERTY NOT COVERED Item 3.1b. is deleted and replaced by the following: 3. Motor vehicles or all other motorized land convey- ances. This includes: b. Electronic apparatus that is designed to be operated solely by use of the power from the electrical system of motor vehicles or all other motorized land conveyances. Electronic appa- ratus includes: b. Designed for assisting the handicapped; COVERAGE D — LOSS OF USE For all forms other than HO 00 04 and HO 00 06, Item 1. is deleted and replaced by the following: 1. If a loss covered under this Section makes that part of the "residence premises" where you reside not fit to live in, we cover the Additional Living Ex- pense, meaning any necessary increase in living expenses incurred by you so that your household can maintain its normal standard of living. Payment will be for the shortest time required to repair or replace the damage or, if you perma- nently relocate, the shortest time required for your household to settle elsewhere. For Forms HO 00 04 and HO 00 06, Item 1. is deleted and replaced by the following: 1. If a loss by a Peril Insured Against under this pol- icy to covered property or the building containing the property makes the "residence premises" not fit to live in, we cover the Additional Living Ex- pense, meaning any necessary increase in living expenses incurred by you so that your household can maintain its normal standard of living. Payment will be for the shortest time required to repair or replace the damage or, if you perma- nently relocate, the shortest time required for your household to settle elsewhere. ADDITIONAL COVERAGES 8. Collapse is deleted and replaced by the following: 8. Collapse a. With respect to this Additional Coverage: (1) Collapse means an abrupt falling down or caving in of a building or any part of a building with the result that the building or part of the building cannot be occupied for its intended purpose. (1) Accessories or antennas; or (2) A building or any part of a building that is in danger of falling down or caving in is not (2) Tapes, wires, records, discs or other media; considered to be in a state of collapse. for use with any electronic apparatus described in this Item 3.1b. HO 0104 02 00 Copyright, Insurance Services Office, Inc., 2000 Page 1 of 6 (3) A part of a building that is standing is not considered to be in a state of collapse even if it has separated from another part of the building. (4) A building that is standing or any part of a building that is standing is not considered to be in a state of collapse even if it shows evidence of cracking, bulging, sagging, bending, leaning, settling, shrinkage or ex- pansion. b. We insure for direct physical loss to covered property involving collapse of a building or any part of a building if the collapse was caused by one or more of the following: (1) Perils Insured Against in Coverage C — Personal Property. These perils apply to covered buildings and personal property for loss insured by this Additional Coverage; (2) Decay that is hidden from view, unless the presence of such decay is known to you prior to collapse; (3) Insect or vermin damage that is hidden from view, unless the presence of such damage Is known to you prior to collapse; (4) Weight of contents, equipment, animals or people; (5) Weight of rain which collects on a roof; or (6) Use of defective material or methods in construction, remodeling or renovation if the collapse occurs during the course of the construction, remodeling or renovation. Loss to an awning, fence, patio, pavement, swimming pool, underground pipe, flue, drain, cesspool, septic tank, foundation, retaining wall, bulkhead, pier, wharf or dock is not in- cluded under Items (2), (3), (4), (5), and (6) unless the loss is a direct result of the collapse of a building or any part of a building. This coverage does not increase the limit of li- ability applying to the damaged covered prop- erty. c. If Endorsement HO 00 15 is attached to the policy, Section I — Additional Coverages 8. Collapse in that Endorsement is deleted in its entirety and Paragraph b.(1) above is deleted and replaced by the following: (1) Perils Insured Against in Coverages A and B. In addition, the following paragraph is added: This Additional Coverage does not apply to Coverage C — Personal Property. d. If Endorsement HO 17 31 is attached to the policy Section I — Additional Coverages 8. Collapse in that Endorsement is deleted in its entirety and Paragraph b.(1) above is deleted and replaced by the following: (1) Perils Insured Against in Coverage A. In addition, the following paragraph is added: This Additional Coverage does not apply to Coverage C — Personal Property. This coverage does not increase the limit of liabil- ity applying to the damaged covered property. 9. Glass or Safety Glazing Material is deleted and replaced by the following: 9. Glass Or Safety Glazing Material a. We cover: (1) For all forms other than HO 00 04 and HO 00 06, the breakage of Glass or Safety Glazing Material which is part of a covered building, storm door or storm window, and for: (a) Form HO 00 04, the breakage of Glass or Safety Glazing Material which is part of a building, storm door or storm win- dow, and covered as Building Additions And Alterations; and (b) Form HO 00 06, the breakage of Glass or Safety Glazing Material which is part of a building, storm door or storm win- dow, and covered under Coverage A; and (2) For all forms other than HO 00 04 and HO 00 06, the breakage, caused directly by Earth Movement, of Glass or Safety Glazing Material which is part of a covered building, storm door or storm window, and for: (a) Form HO 00 04, the breakage, caused directly by Earth Movement, of Glass or Safety Glazing Material which is part of a building, storm door or storm window, and covered as Building Additions And Alterations; and (b) Form HO 00 06, the breakage, caused directly by Earth Movement, of Glass or Safety Glazing Material which is part of a building, storm door or storm window, and covered under Coverage A; and (3) The direct physical loss to covered property caused solely by the pieces, fragments or splinters of broken Glass or Safety Glazing Material which is part of a building, storm door or storm window. Page 2 of 6 Copyright, Insurance Services Office, Inc., 2000 HO 01 04 02 00 b. This coverage does not include loss: (1) To covered property which results because the Glass or Safety Glazing Material has been broken, except as provided in a.(3) above; or (2) On the "residence premises" if the dwelling has been vacant for more than 30 consecu- tive days immediately before the loss, ex- cept when the breakage results directly from Earth Movement as provided for in a.(2) above. A dwelling being constructed is not considered vacant. Loss to glass covered under this Additional Cover- age 9. will be settled on the basis of replacement with safety glazing materials when required by or- dinance or law. For Forms HO 00 01 and HO 00 08, we will pay up to $100 for loss under this coverage. This coverage does not increase the limit of liabil- ity that applies to the damaged property. (This is Additional Coverage 8. in Forms HO 00 01 and HO 00 08.) The following Additional Coverage is added to all forms except HO 00 08. With respect to Form HO 00 04, the words 'covered building' used below, refer to property covered under Additional Coverage 10. Building Additions And Alterations. 11. Ordinance Or Law a. You may use up to 10% of the limit of liability that applies to Coverage A (or for Form HO 00 04, you may use up to 10% of the limit of liability that applies to Building Additions And Alterations) for the increased costs you incur due to the enforcement of any ordinance or law which requires or regulates: (1) The construction, demolition, remodeling, renovation or repair of that part of a covered building or other structure damaged by a Peril Insured Against; (2) The demolition and reconstruction of the undamaged part of a covered building or other structure, when that building or other structure must be totally demolished be- cause of damage by a Peril Insured Against to another part of that covered building or other structure; or (3) The remodeling, removal or replacement of the portion of the undamaged part of a cov- ered building or other structure necessary to complete the remodeling, repair or re- placement of that part of the covered build- ing or other structure damaged by a Peril Insured Against. b. You may use all or part of this Ordinance or Law Coverage to pay for the increased costs you incur to remove debris resulting from the construction, demolition, remodeling, renova- tion, repair or replacement of property as stated in a. above. c. We do not cover: (1) The loss in value to any covered building or other structure due to the requirements of any ordinance or law•, or (2) The costs to comply with any ordinance or law which requires any "insured" or others to test for, monitor, clean up, remove, con- tain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of, pollutants on any covered building or other structure. Pollutants means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes mate- rials to be recycled, reconditioned or re- claimed. This coverage is additional insurance. (This is Additional Coverage 10. in Forms HO 00 01 and HO 00 06.) SECTION I — PERILS INSURED AGAINST Under Form HO 00 03, Coverage A — Dwelling and Coverage B — Other Structures, Item 2.e.(3) is de- leted and replaced by the following: (3) Smog, rust or other corrosion, fungus, mold, wet or dry rot; In Endorsements: HO 00 15, Special Personal Property Coverage, this is Item 1.b.(4)(c) under Section I — Perils Insured Against. HO 0414, Special Computer Coverage, this is Item B.(3)(c) under Perils Insured Against. HO 17 31, Unit -Owners Coverage C, this is Item 3.d.(3) under Section I — Perils Insured Against. HO 17 32, Unit -Owners Coverage A, this is Item 2.e.(3) under Perils Insured Against. SECTION I — EXCLUSIONS 1. Ordinance or Law is deleted and replaced by the following: 1. Ordinance Or Law, meaning any ordinance or law: a. Requiring or regulating the construction, demo- lition, remodeling, renovation or repair of prop- erty, including removal of any resulting debris. This Exclusion 1.a. in all forms other than HO 00 03, and 1.a.(1) in Form HO 00 03, does not apply to the amount of coverage that may be provided for under Additional Coverages, Glass Or Safety Glazing Material or Ordinance Or Law; HO 01 04 02 00 Copyright, Insurance Services Office, Inc., 2000 Page 3 of 6 b. The requirements of which result in a loss in value to property; or c. Requiring any "insured" or others to test for, monitor, clean up, remove, contain, treat, de- toxify or neutralize, or in any way respond to, or assess the effects of, pollutants. 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. This exclusion applies whether or not the property has been physically damaged. (This is Exclusion 1.a. in Form HO 00 03.) 2. Earth Movement is deleted and replaced by the following: 2. Earth Movement, meaning earthquake, including land shock waves or tremors before, during or af- ter a volcanic eruption; landslide; mine subsi- dence; mudflow; earth sinking, rising or shifting; unless direct loss by: a. Fire; or b. Explosion; ensues and then we will pay only for the ensuing loss. This exclusion does not apply to loss by theft. (This is Exclusion 1.b. in Form HO 00 03.) 4. Power Failure is deleted and replaced by the following: 4. Power Failure, meaning the failure of power or other utility service if the failure takes place off the 'residence premises'. But if the failure of power or other utility service results in a loss, from a Peril Insured Against on the 'residence premises', we will pay for the loss or damage caused by that Peril Insured Against. (This is Exclusion 1.d. in Form HO 00 03.) SECTION I — CONDITIONS 3. Loss Settlement Under Form HO 00 06, Item b.(2) is deleted and replaced by the following: (2) If the damage is not repaired or replaced within a reasonable time, at actual cash value, but not more than the amount re- quired to repair or replace. Item 10. Loss Payment, is deleted and replaced by the following: 10. Loss Payment We will adjust all losses with you. We will pay you unless some other person is named in the policy or is legally entitled to receive payment. Loss will be payable 30 days after we receive your proof of loss and: a. Reach an agreement with you; b. There is an entry of a final judgment; or c. There is a filing of an appraisal award with us. SECTION It — EXCLUSIONS Under 1. Coverage E — Personal Liability and Cov- erage F — Medical Payments To Others, Item a. is deleted and replaced by the following: a. Which is expected or intended by one or more "insureds"; SECTIONS I AND II — CONDITIONS 2. Concealment or Fraud is deleted and replaced by the following: 2. Concealment Or Fraud a. Under Section I — Property Coverages, with respect to all "insureds" covered under this policy, we provide no coverage for loss under Section I — Property Coverages if, whether be- fore or after a loss, one or more "insureds" have: (1) Intentionally concealed or misrepresented any material fact or circumstance; (2) Engaged in fraudulent conduct; or (3) Made false statements; relating to this insurance. b. Under Section II — Liability Coverages, we do not provide coverage to one or more "insureds" who, whether before or after a loss, have: (1) Intentionally concealed or misrepresented any material fact or circumstance; (2) Engaged in fraudulent conduct; or (3) Made false statements; relating to this insurance. Page 4 of 6 Copyright, Insurance Services Office, Inc., 2000 HO 01 04 02 00 5. Cancellation Paragraphs b.(2), b.(3), b.(4) and d. are deleted and replaced by the following: (2) When this policy has been in effect for less than 60 days and is not a renewal with us, we may cancel for any reason, except as provided below, by letting you know at least 10 days before the date cancellation takes effect. We may not cancel this policy solely be- cause: (a) You accepted an offer of earthquake coverage; (b) Corrosive soil conditions exist on the "residence premises". This Provision (b) applies only if this policy includes one or more of the following, which exclude loss caused by corrosive soil conditions: (i) Homeowners 3 Special Form; (ii) Unit -Owners Coverage A Endorse- ment; or (iii) Unit -Owners Coverage C Endorse- ment; or (c) You cancelled or did not renew an earthquake policy issued by the Califor- nia Earthquake Authority (CEA) that in- cluded an earthquake policy premium surcharge. However, we may cancel this policy if you have accepted a new or renewal policy issued by the CEA that included an earthquake policy premium sur- charge, but you failed to pay the earth- quake policy premium surcharge authorized by the CEA. (3) When this policy has been in effect for 60 days or more, or at any time if it is a re- newal with us, we may cancel if there has been: (a) Conviction of a crime having as one of its necessary elements an act increasing the hazard insured against; or (b) Discovery of fraud or material misrepre- sentation; by: (i) Any "insured" or his or her repre- sentative in obtaining this insurance; or (ii) You or your representative in pursu- ing a claim under this policy; or (c) Discovery of grossly negligent acts or omissions substantially increasing any of the hazards insured against; or (d) Physical changes in the property insured against which result in the property be- coming uninsurable. However, we may not cancel this policy solely because corrosive soil conditions exist on the 'residence premises" if this policy includes one or more of the fol- lowing, which exclude loss caused by corrosive soil conditions: (i) Homeowners 3 Special Form; (ii) Unit -Owners Coverage A Endorse- ment; or (iii) Unit -Owners Coverage C Endorse- ment. (e) Acceptance of a new or renewal policy, issued by the CEA that included an earthquake policy premium surcharge, but you failed to pay the earthquake policy premium surcharge authorized by the CEA. This can be done by notifying you at least 30 days before the date cancellation takes effect. (4) When this policy is written for a period longer than one year, we may cancel for any reason at anniversary by notifying you at least 45 days before the date cancellation takes effect. d. If, when we cancel this policy, the return pre- mium is not refunded with the notice of cancel- lation, we will refund it within 25 days after the date cancellation takes effect. If, when you cancel this policy, the return premium is not refunded when this policy is returned to us, we will refund it within a reasonable time after the date cancellation takes effect. 6. Nonrenewal is deleted and replaced by the fol- lowing: 6. Nonrenewal a. We may elect not to renew this policy, subject to the provisions of b. below. We may do so by delivering to you at your mailing address shown in the Declarations, written notice at least 45 days before the expiration date of this policy. Proof of mailing will be sufficient proof of notice. HO 01 04 02 00 Copyright, Insurance Services Office, Inc., 2000 Page 5 of 6 b. We will not refuse to renew this policy: (1) Solely because you accepted an offer of earthquake coverage. However, the following applies only to in- surers who are associate participating in- surers as established by Cal. Ins. Code Section 10089.16. We may elect not to re- new this policy after you have accepted an offer of earthquake coverage if one or more of the following reasons apply: (a) The nonrenewal is based on sound underwriting principles that relate to the coverages provided by this policy and that are consistent with the approved rating plan and related documents filed with the Department of Insurance as re- quired by existing law, (b) The Commissioner of Insurance finds that the exposure to potential losses will threaten our solvency or place us in a hazardous condition. A hazardous con- dition includes, but is not limited to, a condition in which we make claims pay- ments for losses resulting from an earthquake that occurred within the pre- ceding two years and that required a re- duction in policyholder surplus of at least 25% for payment of those claims; or (c) We have: (1) Lost or experienced a substantial reduction in the availability or scope of reinsurance coverage; or (ii) Experienced a substantial increase in the premium charged for reinsur- ance coverage of our residential property insurance policies; and the Commissioner has approved a plan for the nonrenewals that is fair and eq- uitable, and that is responsive to the changes in our reinsurance position. (2) Solely because you cancelled or did not renew an earthquake policy, issued by the California Earthquake Authority, that in- cluded an earthquake policy premium sur- charge; (3) Solely because corrosive soil conditions exist on the "residence premises". This Provision (3) applies only if this policy in- cludes one or more of the following, which exclude loss caused by corrosive soil con- ditions: (a) Homeowners 3 Special Form; (b) Unit -Owners Coverage A Endorsement; or (c) Unit -Owners Coverage C Endorsement (4) Solely on the grounds that a claim is pend- ing under the policy unless such claim is made under coverage for loss caused by an earthquake; or (5) Solely on the basis of an "insured's" age. c. If this policy is written for a period of less than one year, we agree not to refuse to renew ex- cept at the end of an annual period commenc- ing with the original or renewal effective date. All other provisions of this policy apply. Page 6 of 6 Copyright, Insurance Services Office, Inc., 2000 HO 01 04 02 00 LE• IMPORTANT FLOOD INSURANCE NOTICE Your homeowners or dwelling policy does NOT provide coverage for loss caused by flood or mudslide, which is defined, in part, by the National Flood Insurance Program as: A general and temporary condition of partial or complete inundation of normally dry land areas from overflow of inland or tidal waters or from the unusual and rapid accumulation or runoff of surface waters from any source. If you are required by your mortgage lender to have flood insurance on your property, or if you feel that your property is susceptible to flood damage, insurance covering damage from flood is available on most buildings and contents in participating communities through the National Flood Insurance Program. Information about flood insurance and whether your community participates in the program can be obtained from your insurance company from your insurance agent/broker, or directly from the National Flood Insurance Program by calling 1-800-638-6620. If you purchase the maximum limits available through the National Flood Insurance Program, and require additional limits, contact your agent/broker for information regarding the Lexington Insurance Company's Excess Flood Program. LEX 00 14 03 01 HOMEOWNERS HO 04 14 04 91 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. SPECIAL COMPUTER COVERAGE All Forms Except HO 00 03 with HO 00 15 And HO 00 06 with HO 17 31 THIS ENDORSEMENT: (1) DOES NOT INCREASE Pollutants means any solid, liquid, gaseous THE LIMIT OF LIABILITY WHICH APPLIES TO or thermal irritant or contaminant, including COVERAGE C, AND (2) DOES NOT MODIFY THE smoke, vapor, soot, fumes, acids, alkalis, SPECIAL LIMITS OF LIABILITY OR THE PROVI- chemicals and waste. Waste includes mate- SIONS OF PROPERTY NOT COVERED UNDER rials to be recycled, reconditioned or re - COVERAGE C. claimed; For an additional premium, the Perils Insured Against (f) Settling, shrinking, bulging or expansion, which apply to Coverage C are deleted and replaced including resultant cracking, of pavements, by the following with respect to "computer equipment": patios, foundations, walls, floors, roofs or Perils Insured Against: We cover an "insured's" "com- ceilings; puter equipment," as defined in this endorsement, (g) Birds, vermin, rodents or insects; or against risk of direct physical loss. (h) Animals owned or kept by an "insured." We do not insure, however, for loss: A. Excluded under SECTION I — EXCLUSIONS. B. Caused by: (1) Freezing of a plumbing, heating, air condition- ing or automatic fire protective sprinkler system or of a household appliance, or by discharge, leakage or overflow from within the system or appliance caused by freezing. This exclusion applies only while the dwelling is vacant, unoc- cupied or being constructed, unless you have used reasonable care to: (a) Maintain heat in the building; or (b) Shut off the water supply and drain the system and appliances of water; (2) Theft in or to a dwelling under construction, until the dwelling is finished and occupied; (3) Any of the following: (a) Wear and tear, marring, deterioration; (b) Inherent vice, latent defect, mechanical breakdown; (c) Smog, rust or other corrosion, mold, wet or dry rot; (d) Smoke from agricultural smudging or in- dustrial operations; (e) Discharge, dispersal, seepage, migration, release or escape of pollutants unless the discharge, dispersal, seepage, migration, release or escape is itself caused by one or more of the Perils Insured Against that would apply under Coverage C of the policy form if this endorsement were not attached to the policy form. If any of these cause water damage not other- wise excluded, from a plumbing, heating, air conditioning or automatic fire protective sprin- kler system or household appliance, we cover loss caused by the water. Under items (1) through (3), any ensuing loss not excluded or excepted in this policy is covered. (4) Vandalism and malicious mischief if the dwell- ing has been vacant for more than 30 consecu- tive days immediately before the loss. A dwell- ing being constructed is not considered vacant; (5) Dampness of atmosphere or extremes of tem- perature unless the direct cause of loss is rain, snow, sleet or hail; (6) Refinishing, renovating or repairing property; (7) Collision, other than collision with a land vehi- cle, sinking, swamping or stranding of water- craft, including their trailers, furnishings, equipment and outboard engines or motors; (8) Destruction, confiscation or seizure by order of any government or public authority; or (9) Acts or decisions, including the failure to act or decide, of any person, group, organization or governmental body. However, any ensuing loss not excluded or excepted in this policy is cov- ered. HO 04 14 04 91 Copyright, Insurance Services Office, Inc., 1990 Page 1 of 2 DEFINITION With respect to the coverage provided by this en- dorsement, "computer equipment' means: 1. Electronic data processing hardware and re- lated peripheral equipment, including CRT screens, disc drives, printers and modems; and 2. Discs, tapes, wires, records or other software media used with the equipment in 1, above. All other provisions of this policy apply Page 2 of 2 Copyright, Insurance Services Office, Inc., 1990 HO 0414 04 91 HOMEOWNERS HO 04 16 04 91 PREMISES ALARM OR FIRE PROTECTION SYSTEM For a premium credit, we acknowledge the installation of an alarm system or automatic sprinkler system approved by us on the 'residence premises." You agree to maintain this system in working order and to let us know promptly of any change made to the system or if it is removed. HO 04 16 04 91 Copyright, Insurance Services Office, Inc., 1990 Page 1 of 1 HOMEOWNERS HO 04 35 04 91 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. LOSS ASSESSMENT COVERAGE 1. Increased Limit — Residence Premises Location of Unit* Limit of Liability* For an additional premium, the limit of liability for Section I Additional Coverage 7 and Section II Ad- ditional Coverage 4, Loss Assessment, is in- creased to: Increase in Limit Total Limit of of Liability* Liability* SPECIAL LIMIT — We will not pay more than SPECIAL LIMIT — We will not pay more than $1,000 of your assessment per unit that results $1,000 of your assessment that results from a de- from a deductible in the policy of insurance pur- ductible in the policy of insurance purchased by a chased by a corporation or association of property corporation or association of property owners. owners. 2. Additional Locations Section II — Coverage E — Personal Liability Exclu- For an additional premium, we agree to pay, up to sion 2.a.(1) does not apply to this coverage. the limit of liability listed below, your share of cov- *Entries may be left blank if shown elsewhere in this ered loss assessments as described in Section 1 policy for this coverage. Additional Coverage 7 and Section II Additional All other provisions of this policy apply. Coverage 4 of the policy, arising out of the prem- ises listed below. HO 04 35 04 91 Copyright, Insurance Services Office, Inc., 1990 Page 1 of 1 HOMEOWNERS HO 04 90 04 91 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. PERSONAL PROPERTY REPLACEMENT COST SECTION I For an additional premium, covered losses to the following property are settled at replacement cost at the time of loss: a. Coverage C — Personal Property; b. If covered in this policy, awnings, carpeting, household appliances, outdoor antennas and outdoor equipment, whether or not attached to buildings. Personal Property Replacement Cost coverage will also apply to the following articles or classes of prop- erty if they are separately described and specifically insured in this policy: a. Jewelry; b. Furs and garments trimmed with fur or con- sisting principally of fur; c. Cameras, projection machines, films and re- lated articles of equipment; d. Musical equipment and related articles of equipment; e. Silverware, silver-plated ware, goldware, gold- plated ware and pewterware, but excluding pens, pencils, flasks, smoking implements or jewelry; and f. Golfer's equipment meaning golf clubs, golf clothing and golf equipment. Personal Property Replacement Cost coverage will not apply to other classes of property sepa- rately described and specifically insured. 1. PROPERTY NOT ELIGIBLE Property listed below is not eligible for replacement cost settlement. Any loss will be settled at actual cash value at the time of loss but not more than the amount required to repair or replace. a. Antiques, fine arts, paintings and similar arti- cles of rarity or antiquity which cannot be re- placed. b. Memorabilia, souvenirs, collectors items and similar articles whose age or history contribute to their value. c. Articles not maintained in good or workable condition. d. Articles that are outdated or obsolete and are stored or not being used. 2. REPLACEMENT COST The following loss settlement procedure applies to all property insured under this endorsement: a. We will pay no more than the least of the fol- lowing amounts: (1) Replacement cost at the time of loss without deduction for depreciation; (2) The full cost of repair at the time of loss; (3) The limit of liability that applies to Coverage C, if applicable; (4) Any applicable special limits of liability stated in this policy; or (5) For loss to any item separately described and specifically insured in this policy, the limit of liability that applies to the item. b. When the replacement cost for the entire loss under this endorsement is more than $500, we will pay no more than the actual cash value for the loss or damage until the actual repair or re- placement is complete. c. You may make a claim for loss on an actual cash value basis and then make claim within 180 days after the loss for any additional liabil- ity in accordance with this endorsement. All other provisions of this policy apply. HO 04 90 04 91 Copyright, Insurance Services Office, Inc., 1990 Page 1 of 1 HOMEOWNERS LEX 0109 03 03 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. SPECIAL PROVISIONS SECTION I — PROPERTY COVERAGES COVERAGE B — Other Structures. The last paragraph is deleted and replaced by the following: The limit of liability for this coverage shall not exceed the amount shown in the Declarations. DEDUCTIBLE CLAUSE — is added as follows: Unless otherwise noted in this policy, the following deductible provision applies: Subject to the policy limits that apply, we will pay only that part of the total of all losses payable under Section I — Property Coverages that exceed the applicable deductible amount shown in the Declarations, under no circumstance shall the applicable deductible be less than the All Other Peril (AOP) deductible listed on the Declarations. SECTION 1 - ADDITIONAL CQVERAGES 11. Ordinance or Law is deleted and replaced on Homeowners 4 — Contents Broad Form (HO 00 04 04 91) or Homeowners 6 — Unit -Owners Form (HO 00 06 04 91) as follows: 11. Ordinance or Law — does not apply and no coverage is provided. SECTION 1— PERILS INSURED AGAINST COVERAGE A — DWELLING and COVERAGE B — OTHER STRUCTURES 2.a. is deleted and replaced by the following: a. Freezing of a plumbing, heating, air conditioning or automatic fire protective sprinkler system or of a household appliance, or by discharge, leakage or overflow from within the system or appliance caused by freezing. This provision does not apply if you have used reasonable care to: (1) Maintain heat in the building; or (2) Shut off the water supply and drain all systems and appliances of water; However, if the building is protected by an automatic fire protective sprinkler system, you must use reasonable care to continue the water supply and maintain heat in the building for coverage to apply. SECTION I — EXCLUSIONS Paragraph 1.i. Act of Terrorism. is added: 1. Act of Terrorism. meaning an act, including but not limited to the use of force or violence and/or the threat thereof, of any person or group(s) of persons, whether acting alone or on behalf of or in connection with any organization(s) or government(s), committed for political, religious, ideological or similar purposes including the intention to influence any government and/or to put the public, or any section of the public, in fear. It is hereby understood and agreed, that notwithstanding any provision to the contrary, it is agreed that this policy excludes, damage, cost or expense of whatsoever nature directly or indirectly caused by, resulting from or in connection with biological, chemical, or nuclear pollution or contamination arising out of any act ofterror- ism regardless of any other cause or event contributing concurrently or in any other sequence to the loss. LEX 0109 03 03 Paae 1 of 3 The or indirectly caused resulting from or in connection with any action taken in controlling preventing, suppressing or in any way relating to any biological. chemical, or nuclear pollution or contamination arising out of an act of terrorism. Nothing in this exclusion shall be construed to exclude loss damage or cost or expense of whatsoever nature arising out of fire following any nuclear incident. SECTION I - CONDITIONS 3.b. Loss Settlement. the following is added: the tion of the value of the building that the actual cash value of the building, on that date, bears to the value when completed. You and we aaree that. for insurance Durposes only. the value of the buildina amount shown on SECTION II - EXCLUSIONS Coverage E — Personal Liability and Coverage F — Medical Payments To Others Para rg aph 1.a. is deleted and replaced by the following: a. Which is expected or intended by or which may reasonably be expected to result from the acts or omissions or criminal acts or omissions of one or more "insured" nersons. This ex( plies even if the resulting "bodily injury' or "property damage": Is committed by an "insured" person(s) lacking the mental capacity to govern their own conduct; Is of a different kind, quality or degree than initially expected or intended; or Is sustained by a different person entity, real or personal property, than initially expected or in- tended. This provision applies regardless of an "insured" person(s) actually being charged with, or convicted of a crime. Paragraph 1,j, is deleted and replaced by the following: L Which arises out of the transmission of a communicable disease by one or more "insured" person(s) or by any other person for whom the "insured" is legally responsible. In addition. "We" shall have no Paragraph I.M. is added: m. Arising out of any claim of or indemnification for punitive or exemplary damages. We shall not have an obligation to pay for any costs interests or damages attributable to punitive or exemplary darn- ages - SECTION I and II — CONDITIONS 2. Concealment or Fraud is deleted and replaced by the following: 2. We do not provide any coverage to one or more "insureds" who, whether before or after a loss, has: Intentionally concealed or misrepresented any material fact or circumstance; (2) Engaged in fraudulent conduct; or addition to not we at void LEX 01 09 03 03 Page 2 of 3 5.Cancellation and 6. Nonrenewal Regardless of any other special fied by any other forms or end terms specified in Section I and ing is added: and or clauses to the c attached to this Dol are not modi- unen- If any provision of this endorsement is expressly prohibited by applicable state law or applicable insurance de- partment regulation, that provision does not apply. LEX 01 09 03 03 Page 3 of 3 HOMEOWNERS HO 04 96 04 91 NO SECTION II - LIABILITY COVERAGES FOR HOME DAY CARE BUSINESS LIMITED SECTION I - PROPERTY COVERAGES FOR HOME DAY CARE BUSINESS If an "insured" regularly provides home day care 3. Limits coverage for property used on the 'resi- services to a person or persons other than "insureds" dence premises" for the home day care enterprise and receives monetary or other compensation for to $2,500, because Coverage C — Special Limits of such services, that enterprise is a 'business." Mutual Liability — item 8. imposes that limit on "business" exchange of home day care services, however, is not property on the residence premises" (Item 8. cor- considered compensation. The rendering of home responds to item 5. in Form HO 00 08.); day care services by an "insured" to a relative of an 4. Limits coverage for property used away from the "insured" is not considered a 'business." "residence premises" for the home day care enter - Therefore, with respect to a home day care enterprise prise to $250, because Coverage C — Special Lim - which is considered to be a "business," this policy: its of Liability — item 9. imposes that limit on "busi- 1. Does not provide Section II — Liability Coverages ness" property away from the 'residence because a 'business" of an "insured" is excluded premises." Special Limit of Liability item 9. does under exclusion 1.b. of Section II — Exclusions; not apply to adaptable electronic apparatus as de- scribed in Special Limit of Liability items 10. and 2. Does not provide Section I — Coverage B coverage 11. (Items 9., 10. and 11. correspond to items 6., where other structures are used in whole or in part 7, and 8. respectively in Form HO 00 08.) for "business"; THIS ENDORSEMENT DOES NOT CONSTITUTE A REDUCTION OF COVERAGE. HO 04 96 04 91 Copyright, Insurance Services Office, Inc., 1990 Page 1 of 1 POLICY NUMBER: HOMEOWNERS HO 05 80 05 97 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. PROPERTY REMEDIATION FOR ESCAPED LIQUID FUEL AND LIMITED LEAD AND ESCAPED LIQUID FUEL LIABILITY COVERAGES ALL FORMS EXCEPT FORMS HO 00 04 AND HO 00 06 SCHEDULE* For the credit given or the premium charged, the coverage provided by this endorsement and the applicable Limits of Liability shown in this Schedule apply. These limits of liability apply to the total of all loss, damage or expense payable under this endorsement, regardless of the number of locations insured under this endorsement and listed in this Schedule. 1. Aggregate Limited Lead And Escaped Liquid Fuel Liability Limit Of Liability $50,000 2. Property Remediation For Escaped Liquid Fuel Limit Of Liability $10,000 This Property Remediation For Escaped Liquid Fuel Limit Of Liability applies to the "residence premises" as defined in Paragraphs a., b. or c. of Definition 8. 'Residence premises" in this endorsement and any of the following locations as defined in Paragraph d. of Definition 8. "Residence premises": * Entries may be left blank if shown elsewhere in this policy for this coverage. A. Definitions The definitions applying to the policy form, other than Definition 8. "Residence premises", apply to this endorsement. Definition 8. 'Residence prem- ises" is amended and Definitions 9. through 11. are added only with respect to the coverage pro- vided by this endorsement. 8. 'Residence premises" means: a. The one family dwelling, other structures, and grounds where you reside; b. That part of any other building where you reside; or c. A two family dwelling where you reside in at least one of the family units; and which is shown as the 'residence prem- ises" in the Declarations; and d. Any location shown in the Schedule of this endorsement. 9. "Covered real property". The following applies only to the Section I — Additional Coverage — Property Remediation For Escaped Liquid Fuel: a. "Covered real property" means: (1) Property owned by an "insured" and covered under Coverage A — Dwelling of this policy; HO 05 60 05 97 Copyright, Insurance Services Office, Inc., 1996 Page 1 of 6 b. For any damage resulting from the loss of or reduction in value of a pending sale of: (1) "Covered real property"; or (2) "Covered personal property"; c. To replace any fuel; d. For any expense to: (1) Demolish or remove; or (2) Repair, replace, rebuild or restore; any part of a "fuel system", other than those expenses provided for in Paragraph B.3.a. or b.; or e. For any damage that results from an es- cape from: (1) One or more containers, tanks or ves- sels, that are, or were, used to hold liq- uid fuel and are a part of a motor vehi- cle, motorized land conveyance or watercraft; or (2) Related lines or parts, that are, or were, connected to a motor vehicle, motorized land conveyance or watercraft. 6. For Form HO 00 03, under Section I — Perils Insured Against, Paragraph 2.e.(5) does not apply to this Property Remediation For Es- caped Liquid Fuel Coverage. 7. When Special Computer Coverage Endorse- ment is attached, Paragraph B.(3)(e) in that endorsement, under Perils Insured Against, does not apply to this Property Remediation For Escaped Liquid Fuel Coverage. 8. For Form HO 00 03 when the Special Personal Property Coverage Endorsement is attached, Paragraph 1.b.(4)(e) in that endorsement, does not apply to this Property Remediation For Escaped Liquid Fuel Coverage. 9. The Section I — Exclusions and Section I — Additional Coverages apply to this Property Remediation For Escaped Liquid Fuel Cov- erage. 10. The Section I — Conditions apply to this Property Remediation For Escaped Liquid Fuel Coverage except as provided in Paragraph C. Section I — Conditions below. 11. This Property Remediation For Escaped Liquid Fuel Coverage does not apply to any "residence premises" at which the containers, tanks or vessels, described in Paragraph A.11.a., have a total combined storage capac- ity of less than 100 U.S. gallons of liquid fuel. Coverage, if any, for escape of liquid fuel from such containers, tanks or vessels is subject to those: a. Exclusions: b. Conditions; c. Other provisions; and d. Limits of Liability; that apply to real and personal property under the policy to which this endorsement is at- tached. C. Section I — Conditions — Property Remediation For Escaped Fuel With respect to loss, damage or expense de- scribed in Paragraph B. Section I — Additional Coverages, Section I Condition 7. Other Insur- ance, is deleted and replaced by the following: 7. Other Insurance And Service Agreement a. Other Insurance If loss, damage or expense covered in pre- ceding Paragraph B. is also covered by other insurance, we will pay only the pro- portion of the loss, damage or expense that the limit of liability that applies under this endorsement bears to the total amount of insurance covering the loss, damage or ex- pense. b. Service Agreement If loss, damage or expense covered in pre- ceding Paragraph B. is also covered by a service agreement, then this Property Re- mediation for Escaped Liquid Fuel Cover- age is excess over any amounts payable under any such agreement. Service Agreement means a "fuel system" service plan, property restoration protection plan, or similar service or warranty agreement, even if it is characterized as insurance. Page 4 of 6 Copyright, Insurance Services Office, Inc., 1996 HO 05 80 05 97 D. Section II — Liability Coverages LIMITED LEAD AND ESCAPED LIQUID FUEL LIABILITY COVERAGE 1. With respect to "bodily injury" or "property damage' described in Paragraph D.2., the cov- erages provided by Section II — Liability Cov- erages, Coverage E — Personal Liability and Coverage F — Medical Payments To Others in the policy form, and the Limits of Liability stated on the Declarations page do not apply. 2. This coverage applies if a claim is made or a suit is brought against an "insured" for dam- ages because of: a. 'Bodily injury" or "property damage' caused by an 'occurrence' involving the escape of fuel from a "fuel system". However, this lim- ited coverage does not apply to an 'occur- rence" of fire or explosion that results from such escaped fuel. Damages resulting from such an 'occurrence' of fire or explosion are subject to the Coverage E — Personal Liability limit of liability of the policy to which this endorsement is attached; b. 'Bodily injury" caused by an 'occurrence' involving the absorption, ingestion or inha- lation of lead which is in or on an 'insured location"; or c. 'Property damage' caused by an 'occur- rence" of lead contamination, but only if, immediately prior to the 'occurrence', the lead was located at an "insured location". NO OTHER LEAD OR ESCAPED LIQUID FUEL LIABILITY COVERAGE APPLIES UN- DER THIS POLICY EXCEPT AS PROVIDED IN THIS PARAGRAPH. 3. If coverage applies as stated in Paragraph D.2., we will: a. Pay up to the Aggregate Limit of Liability stated in the Schedule for damages for which an "insured" is legally liable. Dam- ages include prejudgment interest awarded against an "insured"; and b. Provide a defense at our expense by coun- sel of our choice even if the suit is ground- less, false or fraudulent. We may investi- gate and settle any claim or suit that we decide is appropriate. Our duty to settle or defend ends when the amount we pay for damages resulting from "bodily injury" or "property damage" described in Paragraph D.2. exhausts the Aggregate Limit of Liabil- ity stated in the Schedule. 4. With respect only to applying the provisions of this coverage as described in Paragraph D.2., "bodily injury" or "property damage' caused in whole or in part by an 'occurrence' described in Paragraph D.2. shall be deemed to have been caused solely by such an 'occurrence' regardless of any other covered cause or event contributing to the 'bodily injury" or "property damage'. 5. The Section II — Additional Coverages in the policy form apply with respect to this coverage as described in Paragraph D. except as pro- vided in Paragraph E. Section II — Additional Coverages. 6. The Section II — Conditions in the policy form apply with respect to this coverage as de- scribed in Paragraph D. except as provided in Paragraph F. Section II — Liability Condi- tions. 7. This coverage does not apply to an "insured location" at which the containers, tanks or ves- sels described in Paragraph A.11.a. have a total combined storage capacity of less than 100 U.S. gallons of liquid fuel. Coverage, if any, for an 'occurrence' involving the escape of liquid fuel from such containers, tanks or vessels is subject to those: a. Exclusions; b. Conditions; c. Other provisions; and d. Limits of Liability; that apply to Personal Liability and Medical Payments To Others coverage in the policy to which this endorsement is attached. E. Section II —Additional Coverages With respect to coverage described in Paragraph D. Section II — Liability Coverages, Additional Coverage 4. Loss Assessment is deleted and re- placed by the following: 4. Loss Assessment a. We will pay up to the Aggregate Limit of Liability stated in the Schedule for your share of loss assessment charged during the policy period against you by a corpora- tion or association of property owners, when the assessment is made as a result of: (1) An "occurrence" involving the escape of fuel from a "fuel system"; HO 05 80 05 97 Copyright, Insurance Services Office, Inc., 1996 Page 5 of 6 (2) "Bodily injury" caused by an "occur- rence", on property owned by all mem- bers collectively, involving the absorp- tion, ingestion or inhalation of lead which occurs on an "insured location" contain- ing the "residence premises" (3) "Property damage" caused by an "occur- rence", on property owned by all mem- bers collectively, of lead contamination, but only if the lead originates at an "in- sured location" containing the "resi- dence premises"; or (4) Liability for an act of a director, officer or trustee in the capacity as a director, offi- cer or trustee, provided: (a) The director, officer or trustee is elected by the members of a corpo- ration or association of property owners; and (b) The director, officer or trustee serves without deriving any income from the exercise of duties which are solely on behalf of a corporation or asso- ciation of property owners. b. This coverage applies only to loss assess- ments charged against you as owner or tenant of the "residence premises". c. We do not cover assessments charged against you or a corporation or association of property owners: (1) As required by law; or (2) In response to a request, demand or order by a governmental authority or court of law. d. Regardless of the number of assessments, the Aggregate Limit of Liability stated in the Schedule is the most we will pay for loss arising out of: (1) One accident, including continuous or repeated exposure to the same general harmful conditions; or (2) A covered act of a director, officer or trustee. An act involving more than one director, officer or trustee is considered to be a single act. e. The following do not apply to this coverage: (1) Section II - Coverage E - Personal Liability Exclusion 2.a.(1) in the policy form to which this endorsement is at- tached;and (2) Sections I and II Conditions, Item 1. Policy Period in this endorsement and in the policy form to which this endorse- ment is attached. F. Section II - Liability Conditions With respect to coverage described in Paragraph D. Section II - Liability Coverages: 1. Conditions 4. - Duties Of An Injured Person - Coverage F - Medical Payments To Others and 5. - Payment Of Claim - Coverage F - Medical Payments To Others are deleted; and 2. Conditions 1. - Limit Of Liability and 2. - Severability Of Insurance in the policy form are deleted and replaced by the following: 1. Aggregate Limit Of Liability Our total liability in any one policy period for all damages resulting from the total of all "bodily injury" or "property damage" during the policy period will not be more than the Limited Lead and Escaped Liquid Fuel Li- ability Coverage Aggregate Limit of Liability stated in the Schedule. This is the most we will pay regardless of the: a. Number of locations insured under the policy to which this endorsement is at- tached; b. Number of persons injured; c. Number of persons whose property is damaged; d. Number of "insureds"; or e. Number of claims made. The "occurrence" limit of liability does not apply to this coverage. 2. Severability Of Insurance This insurance applies separately to each "insured" except with respect to the Aggre- gate Limit of Liability described in Para- graph F.2.1. This condition will not increase the Limit for this coverage. G. Sections I And II - Conditions Sections I and II - Conditions, Item 1. Policy Period is deleted with respect to the provisions of this endorsement and replaced by the following: 1. Policy Period - Section 11- Liability This endorsement applies to "bodily injury" or "property damage" described in Paragraph D.2. All other provisions of the policy not specifically modi- fied by this endorsement apply. Page 6 of 6 Copyright, Insurance Services Office, Inc., 1996 HO 05 80 05 97 HOMEOWNERS HO 24 82 04 91 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. PERSONAL INJURY For an additional premium, under Coverage E — Per- sonal Liability, the definition "bodily injury" is amended to include personal injury. "Personal injury" means injury arising out of one or more of the following offenses: 1. False arrest, detention or imprisonment, or mali- cious prosecution; 2. Libel, slander or defamation of character; or 3. Invasion of privacy, wrongful eviction or wrongful entry. Section II Exclusions do not apply to personal injury. Personal injury insurance does not apply to: 1. Liability assumed by the "insured" under any con- tract or agreement except any indemnity obligation assumed by the "insured" under a written contract directly relating to the ownership, maintenance or use of the premises; 2. Injury caused by a violation of a penal law or ordi- nance committed by or with the knowledge or con- sent of an "insured' 3. Injury sustained by any person as a result of an offense directly or indirectly related to the em- ployment of this person by the "insured"; 4. Injury arising out of or in connection with a "busi- ness" engaged in by an "insured." This exclusion applies but is not limited to an act or omission, re- gardless of its nature or circumstance, involving a service or duty rendered, promised, owed, or im- plied to be provided because of the nature of the "business"; 5. Civic or public activities performed for pay by an "insured": or 6. Injury to you or an "insured" within the meaning of part a. or b. of "insured" as defined. All other provisions of this policy apply. HO 24 82 04 91 Copyright, Insurance Services Office, Inc., 1990 Page 1 of 1 LEXINGTON INSURANCE COMPANY STANDARD POLICY CONDITIONS THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY MINIMUM EARNED PREMIUM CLAUSE In the event of cancellation of this policy by you, the minimum premium listed on the Declaration page shall become fully earned, any provision of the policy to the contrary notwithstanding. Your failure to make timely payment of premium shall be considered a request by you for us to cancel on your behalf. In the event of such cancellation for non-payment of premium, the minimum earned premium shall be due and payable; provided, however, such cancellation shall be rescinded if you remit and we receive the full policy premium within 10 days after the date of issuance of the cancellation notice. Such remittance and acceptance by us shall not affect the minimum earned provision of this endorsement. In the event of any other cancellation by us, the earned premium shall be computed pro -rata, not subject to the minimum earned premium. SERVICE OF SUIT CLAUSE Service of Suit - In the event of our failure to pay any amount claimed to be due hereunder, we, at your request, will submit to the jurisdiction of a court of competent jurisdiction within the United States. Nothing in this condition constitutes or should be understood to constitute a waiver of our rights to commence an action in any court of competent jurisdiction in the United States to remove an action to a United States District Court or to seek a transfer of a case to another court as permitted by the laws of the United States or of any state in the United States. It is further agreed that service of process in such suit may be made upon Counsel, Legal Department, Lexington Insurance Company, 100 Summer Street, Boston, Massachusetts, 02110-2103 or his or her representative, and that in any suit instituted against us upon this policy, we will abide by the final decision of such court or of any appellate court in the event of an appeal. Further, pursuant to any statute of any state, territory, or district of the United States which makes provision therefor, we hereby designate the Superintendent, Commissioner or Director of Insurance, or other officer specified for that purpose in the statute, or his or her successors in office as our true and lawful attorney upon whom may be served any lawful process in any action, suit, or proceeding instituted by you or on your behalf or any beneficiary hereunder arising out of this policy of insurance and hereby designate the above named Counsel as the person to whom the said officer is authorized to mail such process or a true copy thereof. AUTHORIZATION CLAUSE IN WITNESS WHEREOF, we have caused this policy to be executed and attested, but this policy shall not be valid unless signed on the Declaration page by our duly authorized representative. )1( . yut L, . rid • I An SECRETARY CHAIRMAN AND CEO LEX 00 04 0101 LEX 00 11 08 99 California Residential Property Insurance Disclosure This disclosure is required by California law (Section 10102 of the Insurance Code). It describes the principle forms of insurance coverage in California for residential dwellings. It also identifies the form of dwelling coverage you have purchased or selected. This disclosure form contains only a general description of coverages and is not part of your residential property insurance policy. Only the specific provisions of your policy will determine whether a particular loss is covered and, if so, the amount payable. Regardless of which type of coverage you purchase, your policy may exclude or limit certain risks. READ YOUR POLICY CAREFULLY. If you do not understand any part of it or have questions about what it covers, contact your insurance agent or company. You may also call the California Department of Insurance consumer information line at (1-800-927-4357). LEX 00 1108 99 Page 1 of 2 Dwelling FORMS OF COVERAGE FOR DWELLINGS Coverage elected or purchased GUARANTEED REPLACEMENT COST COVERAGE WITH FULL BUILDING CODE UPGRADE Not PAYS REPLACEMENT COSTS WITHOUT REGARD TO POLICY LIMITS, AND INCLUDES Applicable COSTS RESULTING FROM CODE CHANGES. In the event of any covered loss to your home, the insurance company will pay the full amount needed to repair the damaged or destroyed dwelling with like or equivalent construction regardless of policy limits. Your policy will specify whether you must actually repair or replace the damaged or destroyed dwelling in order to recover guaranteed replacement cost. The amount of recovery will be reduced by any deductible you have agreed to pay. This coverage includes all additional costs of repairing or replacing your damaged or destroyed dwelling to comply with any new building standards (such as building codes or zoning laws) required by government agencies and in effect at the time of rebuilding. To be eligible to recover full guaranteed replacement costs with building code upgrade, you must insure the dwelling to its full replacement cost at the time the policy is issued, with possible periodic increases in the amount of coverage to adjust for inflation and increases in building costs; you must permit inspections of the dwelling by the insurance company; and you must notify the insurance company about any alterations that increase the value of the insured dwelling by a certain amount (see your policy for that amount). GUARANTEED REPLACEMENT COST COVERAGE WITH LIMITED OR NO BUILDING CODE UPGRADE PAYS REPLACEMENT COSTS WITHOUT REGARD TO POLICY LIMITS BUT LIMITS OR EXCLUDES CASTS RESULTING FROM CODE CHANGES. In the event of any covered loss to your home, the insurance company will pay the full amount needed to repair or replace the damaged or destroyed dwelling with like or equivalent construction regardless of policy limits. Your policy will specify whether you must actually repair or replace the damaged or destroyed dwelling in order to recover guaranteed replacement cost. The amount of recovered will be reduced by any deductible you have agreed to pay. This coverage does not include all additional costs of repairing or replacing your damaged or destroyed dwelling to comply with any new building standards (such as building codes or zoning laws) required by government agencies and in effect at the time of rebuilding. Consult your policy for the applicable exclusions or limits with respect to these costs. To be eligible to recover full replacement cost with the limited or no building code upgrade, you must insure the dwelling to its full replacement cost at the time the policy is issued, with possible periodic increases in the amount of coverage to adjust for inflation and increases in building costs; you must permit an inspection of the dwelling by the insurance company; and you must notify the insurance company about any alterations that increase the value of the insured dwelling by a certain amount (see your policy for that amount). LEX 00 1108 99 Page 1 of 2 LEX 00 1108 99 This disclosure form does not explain the types of contents coverage (furniture, clothing, etc.) provided by your policy. Some policies do not replace contents with new items, but instead, only pay for the current market value of an item. If you have any questions, contact your insurer or agent. LEX 00 11 08 99 Page 2 of 2 Dwelling FORMS OF COVERAGE FOR DWELLINGS Coverage elected or purchased EXTENDED REPLACEMENT COST COVERAGE PAYS REPLACEMENT COSTS UP TO A SPECIFIED AMOUNT ABOVE THE POLICY LIMIT. In the event of any covered loss to your home, the insurance company will pay to repair or replace the damaged or destroyed dwelling with like or equivalent construction up to a specified percentage over the policy's limits of liability. See the declarations page of your policy for the limit that applies to your dwelling. Your policy will specify whether you must actually repair or replace the damaged or destroyed dwelling in order to recover extended replacement costs. The amount of recovery will be reduced by any deductible you have agreed to pay. To be eligible to recover extended replacement cost coverage, you must insure the dwelling to its full replacement cost at the time the policy is issued, with possible periodic increases in the amount of coverage to adjust for inflation; you must permit an inspection of the dwelling by the insurance company; you must notify the insurance company about any alterations that increase the value of the insured dwelling by a certain amount (see your policy for that amount). Your policy will specify whether or not you must actually repair or replace the damaged or destroyed dwelling in order to recover extended replacement cost. Read your declaration page to determine whether your policy includes coverage for building code upgrades. REPLACEMENT COST COVERAGE PAYS REPLACEMENT COSTS UP TO POLICY LIMITS. In the event of any covered loss to your home, the insurance company will pay to repair or replace the damaged or destroyed dwelling with like or equivalent construction up to the policy's limit of liability. See the declarations page of your policy for the limit that applies to the dwelling. Your policy will specify whether you must actually repair or replace the damaged or destroyed dwelling in order to recover replacement costs. The amount of recovery will be reduced by any deductible that you have agreed to pay. To be eligible to recover replacement cost, you must insure the dwelling to (100) percent of its replacement cost at the time of loss. Read your declaration page to determine whether your policy includes coverage for building code upgrades. ACTUAL CASH VALUE COVERAGE PAYS THE FAIR MARKET VALUE OF THE DWELLING AT THE TIME OF LOSS, UP TO POLICY LIMIT. In the event of any covered loss to your home, the insurance company will pay either the depreciated fair market value of the damaged or destroyed dwelling at the time of the loss or the cost of replacing or repairing the damaged or destroyed dwelling with like or equivalent construction up to the policy limit. The amount of recovery will be reduced by any deductible you have agreed to pay. Read your declaration page to determine whether your policy includes coverage for building code updates. BUILDING CODE UPGRADE - ORDINANCE AND LAW COVERAGE PAYS, UP TO LIMITS SPECIFIED IN YOUR POLICY, ADDITIONAL COSTS REQUIRED TO BRING THE DWELLING "UP TO CODE" In the event of any covered loss, the insurance company will pay any additional costs, up to the stated limits, of repairing or replacing a damaged or destroyed dwelling to conform with any building standards such as building codes or zoning laws required by government agencies and in effect at the same time of the loss or rebuilding (see your policy). This disclosure form does not explain the types of contents coverage (furniture, clothing, etc.) provided by your policy. Some policies do not replace contents with new items, but instead, only pay for the current market value of an item. If you have any questions, contact your insurer or agent. LEX 00 11 08 99 Page 2 of 2 Consumer Affairs - California LEX 0012 1199 Because of the complicated nature of the insurance business, there may be times when you have questions regarding your coverage or the premium charged, or a problem may arise with your policy. If this occurs, we urge you to contact either your agent or broker to answer your question or resolve your problem. However, if you are unable to receive a satisfactory answer or resolution to your problem, please contact us directly. If you are still not satisfied, you may contact the following State Agency: CALIFORNIA DEPARTMENT OF INSURANCE 300 South Spring Street Los Angeles, CA 90013 Toll Free Number: 1 -800 -927 -HELP (Calif. only) LEX 0012 1199 Page 1 of 1 LEX 00 30 05 03 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. EXTERIOR INSULATION AND FINISH SYSTEM EXCLUSION THIS ENDORSEMENT IS ADDED TO YOUR HOMEOWNERS POLICY AND APPLIES TO ALL COVERAGES AND COVERAGE PARTS THAT FORM PART OF THIS POLICY. This coverage does not apply to any of the following, regardless of any other cause or event that contributes thereto, concurrently or in any sequence: "Bodily injury", "property damage", or any other loss including but not limited to seepage, delamination, detachment, cracking, insect damage, collapse or imminent collapse, caused directly or indirectly, in whole or in part, by the design, manufacture, construction, fabrication, preparation, installation, application, maintenance or repair, including remodeling, service, correction, or replacement, of an "exterior insulation and finish system" or any part thereof, or any substantially similar system or any part thereof, including the application or use of conditioners, primers, accessories, flashings, coatings, caulking or sealant in connection with such a system; or 2. Any moisture -related or dry rot -related "property damage" to an "insured location" or other building to which an "exterior insulation and finish system" has been applied, if that "property damage" is caused directly or indirectly, in whole or in part, by the "exterior insulation and finish system"; For the purpose of this endorsement, an "exterior insulation and finish system" means an exterior cladding or finish system applied to an "insured location" or other building, and consisting of: a) A rigid or semi-rigid insulation board made of expanded polystyrene or other material; and b) The adhesive and/or mechanical fasteners used to attach the insulation board to the substrate; and c) A reinforcing mesh that is embedded in a base coat applied to the insulation board; and d) A finish coat providing surface texture and color. However, an "exterior insulation and finish system" does not include a cement -based, enhanced stucco cladding system which; a) Incorporates a weather resistive building wrap; and b) Incorporates ribbed insulation board to provide drainage. Nothing in this exclusion is deemed to supercede coverage provided by the Limited Mold Coverage Related endorsement (LEX 04 33 04 02); (LEX 00 25 11 01); (LEXELITE 00 25 02 03); (LEXELITE 00 25 04 02); (LEX DP 04 33 05 03). All other terms, conditions and exclusions of the policy remain unchanged. LEX 00 30 05 03 HOMEOWNERS PROPERTY REMEDIATION FOR ESCAPED LIQUID FUEL AND LIMITED LEAD AND ESCAPED LIQUID FUEL LIABILITY COVERAGES ADVISORY NOTICE TO POLICYHOLDERS THIS NOTICE DOES NOT PROVIDE COVERAGE NOR DOES THIS NOTICE REPLACE ANY PROVISIONS OF YOUR POLICY. YOU SHOULD READ YOUR POLICY AND REVIEW YOUR DECLARATIONS PAGE FOR COMPLETE INFORMATION ON THE COVERAGES YOU ARE PROVIDED WITH. IF THERE IS ANY CONFLICT BETWEEN THE POLICY AND THIS NOTICE, THE PROVISIONS OF THE POLICY SHALL PREVAIL. The policy you have just applied for or received has: • added coverage for damage to your property caused by the escape of certain petroleum products that may be found in or on your home, your residential unit in an apartment, condominium or cooperative building, your household or personal property, other real property you own that is covered in this policy and land on which your home or unit or covered personal property is located, and • reduced liability coverage for injury to another person, or damage to the property of others, that is caused by the escape of certain petroleum products or by lead on or emanating from an insured location such as your house, any other premises where you are living but which you do not own, or vacant land that you own. ESCAPED FUEL REMEDIATION If liquid fuel escapes from a fuel storage system on your property, loss or damage caused by the escaped fuel to your home, personal property, any other one, two, three or four family dwelling building you own and insure for remediation coverage will be covered. Additionally, your land on which the house, other structures or other dwelling building you own are situated will be covered for loss or damage. Coverage will apply when the fuel storage tanks, vessels and/or containers on your property have a total combined storage capacity of 100 or more U.S. gallons of liquid fuel. Coverage will also be provided for: 1. The cost of making temporary repairs to stop the further escape of liquid fuel, or to retard or stop the spread of escaped liquid fuel. 2. Reasonable expenses to test, monitor or assess the effects of escaped liquid fuel required by law, or when a governmental agency or a court of law requests, orders or demands that you do so. LEX 05 80 01 OT Page 1 of 3 3. Loss or damage to your trees, shrubs and plants that are not grown for business; and 4. Additional living expenses you incur to maintain your normal standard of living. However, there will be no coverage: 1. For a reduction in the market value of your house and any other dwelling building you own, including the land on which they are situated, or your personal property, whether or not such property has been damaged; 2. For damages resulting from the loss of a pending sale of your house and, if covered under this policy, other dwelling buildings, other structures and your personal property; 3. To replace any of the escaped fuel; 4. For any expense you incur to demolish, repair or replace any part of your fuel system; and 5. For any damages resulting from an escape of liquid fuel from one or more containers, tanks or vessels or related lines or parts that are connected to or a part of a motor vehicle, motorized land conveyance or watercraft. Our limit of liability We will provide up to $10,000 of coverage. The limit is the most we will pay for the total of all loss, damage or expense caused by the escape of liquid fuel from your fuel system during the policy period regardless of the number of locations insured under your policy, the number of escapes of liquid fuel you discover or learn of during the policy period or the number of claims made. Your Deductible We will apply the AOP (all other perils) deductible shown on the declaration page to any loss. LEAD AND ESCAPED FUEL LIABILITY COVERAGE 1. We have limited your coverage when a claim is made or a suit is brought against you by another person alleging damages because of. a. bodily injury arising out of the absorption, ingestion or inhalation of lead that is in or on your home or your residential unit, any other structures you may own, your personal property, and soil on any insured location; LEX 05 80 0101 Page 2 of 3 b. property damage arising out of lead contamination, but only if the lead originates at an insured location; or c. bodily injury or property damage arising out of the escape of liquid fuel from your fuel storage system when the fuel storage tanks, vessels and/or containers have a total combined storage capacity of 100 or more U.S. gallons of liquid fuel and the fuel is used to heat or cool your dwelling, heat water, cook food, or power your motor vehicle, recreational vehicle or boat not used in any business. 2. The limit of liability is provided on an aggregate basis. This means that the limit for liability coverage is the most we will pay for all damages resulting from the total of all bodily injury or property damage, occurring during the entire policy period, that is caused by the escape of liquid fuel from your fuel system or the exposure to lead. This aggregate limit is the most we will pay regardless of the number of locations insured under the policy, number of insureds, number of persons injured by the lead or escaped fuel, number of persons whose property is damaged by the lead or escaped fuel or the number of claims made against you. We will provide up to $50,000 of coverage. LEX 05 80 0101 Page 3 of 3 LEX 15 3108 01 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. SPECIAL PERSONAL PROPERTY COVERAGE AGREEMENT We agree to provide the special personal property coverage in this endorsement with the understanding that: 1. You occupy the 'residence premises" which con- tains the covered property; and 2. Such residence is not rented or sublet to another, without our prior knowledge and acceptance. The Perils Insured Against under homeowners form: HO 00 03 - Coverages A, B and C or; .—HO 00 04 and HO 00 06 – Coverage C only; are deleted and replaced by the following: SECTION I – PROPERTY COVERAGES A. Coverage C – Personal Property The Special Limits of Liability items 5__6,, and 7,, are deleted and replaced by the following: 5. $1,000 for loss by theft, misplacing or losing of jewelry, watches, furs, precious and semi- precious stones. 6, $2,000 for loss by theft, misplacing or losing of firearms. 7, $2,500 for loss by theft, misplacing or losing of silverware, silver-plated ware, goldware, gold- plated ware, platinumware and platinum- platedware and pewterware. This includes flat- ware, hollowware, tea sets, trays and trophies made of or including silver, gold or pewter. B. ADDITIONAL COVERAGES 8. Collapse Paragraph a. is deleted and replaced by the fol - Lo win a. Perils Insured Against in Coverages A and B. The following paragraph is also added: This additional coverage does not apply to Coverage C – Personal Property. SECTION I – PERILS INSURED AGAINST We insure against risk of direct Dhvsical loss to DroD- erty described in Coverages A, B and C for form HO 00 03 and for Coverage C only for form HO 00 04 and HO 00 06. We do not insure, however, for loss: 1, Under Coverages A, B and C: a. Excluded under SECTION I – EXCLU- SIONS; b. Caused by: (1) Freezing of a plumbing, heating, air Dliance. or by discharae. leakage or ance able care to: (a) Maintain heat in the building; or (b) Shut off the water supply and drain all systems and appliances of water; However, if the building is protected by an automatic fire protective sprinkler system, you must use reasonable care to continue the water supply or maintain heat in the building for coverage to apply. For purposes of this provision a plumbing system or household appliance does not include a sump, sump pump or related equipment or a roof drain gutter, down spout or similar fixtures or equipment. (2) Freezing, thawing, pressure or weight of water or ice, whether driven by wind or not, to a: (a) Fence, pavement, patio or swimming pool; (b) Footing, foundation, bulkhead, wall or any other structure or device, that supports all or part of a building or other structure; (c) Retaining wail or bulkhead that does not support all or Dart of a building or other structures; or (d) Pier, wharf or dock; (3) Theft in or to a dwelling under construc- tion, or of materials and supplies for use in the construction until the dwelling is (4) finished and occupied; LEX 15 3108 01 Page 1 of 3 (a) A plumbing, heating air condition- ing or automatic fire protective sprinkler system, or a household appliance, on the 'residence prem- ises", or (b) A storm drain, or water, steam or sewer pipes, off the 'residence premises". For the purpose of this provision, a plumbing system or household appliance does not include a sump, sump pump or related equipment or a roof drain, gutter, downspout or similar fixtures or equip- ment; (5) Any of the following: (a) Wear and tear, marring, deteriora- tion; (b) Mechanical breakdown, latent defect, inherent vice, or any quality in prop- erty that causes it to damage or de- stroy itself; (c) Smog, rust or other corrosion, mold, wet or dry rot; (d) Smoke from agricultural smudging or industrial operations; (e) Pollutants means any solid, liquid, gaseous or thermal irritant or con- taminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned or re- claimed; (f) Settling, shrinking, bulging or expan- sion, including resultant cracking, of pavements, patios, foundations, walls, floors, roofs or ceilings; (g) Birds, vermin, rodents, or insects; or (h) Animals owned or kept by an "in- sured." If anv of these cause water damaae not or we re - We do not cover loss to the system or appliance from which this water es- caped. Under items (1) through (5), any ensuing loss to property described in Coverages A, B and C not excluded or excepted in this policy is cov- ered. 2, Under Coverages A and B: a, Caused by vandalism and malicious mis- chief if the dwelling has been vacant for more than 30 consecutive days immediately before the loss. A dwelling being con- structed is not considered vacant. b. Involving collapse, other than as provided in Additional Coverages — 8, Collapse. How- ever, any ensuing loss to property described in Coverages A and B not excluded or ex- cepted in this policy is covered. 3, Under Coverage C caused by: a. Breakage of: (1) Eyeglasses, glassware, statuary, mar- ble; (2) Bric-a-brac, porcelains and similar frag- ile articles other than jewelry, watches, bronzes, cameras and photographic lenses. There is coverage for breakage of the prop- erty by or resulting from: (1) Fire, lightning, windstorm, hail; (2) Smoke, other than smoke from agricul- tural smudging or industrial operations; (3) Explosion, riot, civil commotion; (q) Aircraft, vehicles, vandalism and mali- cious mischief; (5) Collapse of a building or any part of a building; (8) Water not otherwise excluded; (7) Theft or attempted theft; or (8) Sudden and accidental tearing apart, cracking, burning or bulging of: (a) A steam or hot water heating system; (b) An air conditioning or automatic fire protective sprinkler system; or (c) An appliance for heating water; b. Dampness of atmosphere or extremes of temperature unless the direct cause of loss is rain, snow, sleet or hail; c. Refinishing, renovating or repairing property other than watches, jewelry and furs; d. Collision, other than collision with a land vehicle, sinking, swamping or stranding of watercraft, including their trailers, furnish- ings, equipment and outboard engines or motors; LEX 15 31 08 01 Page 2 of 3 e, Acts or decisions, including the failure to act or decide, of any person, group, organiza- tion or governmental body. However, any ensuing loss to property described in Cov- erage C not excluded or excepted in this policy is covered. SECTION I — EXCLUSIONS 1.c. Water Damage. The following paragraphs are added: Water damage to property described in Cover- age C away from a premises or location owned, rented, occupied or controlled by an "insured" is covered. Water damage to property described in Cover- age C on a premises or location owned, rented, occupied or controlled by an "insured" is ex- cluded even if weather conditions contribute in any way to produce the loss. All other provisions of this policy apply. LEX 15 31 08 01 Page 3 of 3 HOMEOWNERS LEX 24 90 09 00 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY WORKERS COMPENSATION RESIDENCE EMPLOYEES -CALIFORNIA We agree, with respect to "residence employees" Under Coverage I To pay when due all benefits required of an "insured" by the California Workers' Compensation Law; and Under Coverage 11 Topay on behalf of an "insured" all damages for which the "insured" is legally liable because of "bodily injury' sustained by a "residence employee". The "bodily injury" must be caused by accident or disease and arise out of and in the course of employment by the "insured" while: a. In the United States of America, its territories or possessions, or Canada, or b. Temporarily elsewhere if the "residence employee" is a citizen or resident of the United States or Can- ada. Coverage 11 does not apply to any suit brought in or judgment rendered by any court outside the United States of America, its territories and possessions, or Canada, or to any action on such judgment. Who is Covered A "residence employee" is covered if during the 90 calendar days immediately before the date of injury the employee has: a. Actually been engaged in such employment by the "insured" for no less than 52 hours, and b. Earned no less than one hundred dollars ($100) in wages. Application of Coverage This insurance applies only to "bodily injury" which occurs during the policy period. If the "bodily injury' is a disease, it must be caused or aggravated by the conditions of the "residence employee's" employment by the "insure ". Policy Provisions This insurance issubject to all the provisions of this endorsement and the following provisions of this pol- i a, Under Sections I and II — Conditions: 4, Waiver or Change of Policy Provisions. 5. Cancellation. 7, Assignment. g, Subrogation. b, Under Section II — Conditions: 3, Duties After Loss. g, Suit Against Us. c, Our agreement to defend the "insured" as provided under Coverage E — Personal Liability. d, Under Section ll— Additional Coverages: 1, Claim Expenses. 2, First Aid Expenses. e, The definition of "bodily injury", "business", "in- sured" and "residence employee". Additional Provisions Applicable to Coverage I The following provisions are applicable to Coverage I: a. We shall be directly and primarily liable to any "residence employee" of an "insured" entitled to the benefits of the California Workers' Compensa- tion Law. b, As between the "residence employee" and us, notice to or knowledge of the "occurrence" of the injury on the part of an "insured" will be deemed notice or knowledge on our part. c. The jurisdiction of an "insured" will, for the purpose of the law imposing liability for compensation, be our jurisdiction. El LEX 24 90 09 00 Page 1 of 2 e, The "residence employee" has a first lien upon any amount which we owe you on account of this in- surance. In case of your legal incapacity or inability we emolovee". Your obligation to the "residence em - Limits of Liability Coverage 11 Our total limit of liability will not exceed $100,000 or the limit of liability shown for Coverage E- Personal Liability limit on the policy declarations page for all damages because of "bodily injury': a. Sustained by one or more "residence employees" in any one accident; or b. Caused by disease and sustained by a "residence employee". Our total limit of liabilityill wnot exceed $500,000 for all damages arising out of 'bodily injury" by disease regardless of the number of "residence employees" who sustain "bodily injury" by disease. Other Insurance This insurance does not apply to any loss to which other valid and collectible Workers' Compensation or Employers' Liability Insurance applies. Conformity to Statute ferms of this insurance which are in conflict with the California Workers' Compensation Law are amended to conform to that law. Exclusions This policy does not apply: a. To liability for additional compensation imposed on an "insured" under Sections 4553 and 4557, Divi- sion IV, Labor Code of the State of California, be- cause of the serious and willful misconduct of an "insured", or because of "bodily injury" to an em- ployee under 16 years of age and illegally em- ployed at the time of injury; b. To liability for "bodily injury" arising out of "busi- ness" pursuits of an "insured". c, Under Coverage II: 1, To liability assumed by the "insured" under any contract or agreement. 2, To "bodily injury" by disease unless a written claim is made or suit brought against the "in- sured" within 36 months after the end of the policy period. 3. To any obligation under a workers' compensa- tion, unemployment or disability benefits law or any similar law. Page 2 of 2 Copyright, Insurance Services Office, Inc., 1993 LEX 24 90 09 00 Privacy Policy Our Commitment to Privacy The AIG Companies (AIG) believe one of our most important assets is the trust consumers place in us to respect and properly handle nonpublic personal information received by us in connection with providing our products and services. To continue earning your trust and enhance the products and services offered to you, the companies listed below have adopted the following privacy policy to govern how we treat your nonpublic personal information, including such information about our former customers. It's important for you to know that this privacy policy applies only to the product or service you have just obtained or the insurance policy under which you are seeking or receiving benefits. As a large worldwide leader in the delivery of financial products and services, we offer numerous products and services to many types of consumers and clients in many different states and countries around the world. Therefore, each of our companies may issue different privacy policies to fit the specific products and services they offer. Protecting and Safeguarding Your Information To help prevent unwarranted disclosure of your nonpublic information and secure it from theft, we utilize secure computer networks and restrict access to nonpublic personal information about you to those employees who need to know that information to provide products or services to you. In addition, we maintain physical, electronic, and procedural safeguards that comply with applicable laws and regulations to guard our customers' nonpublic personal information. Maintaining Accurate Information We also maintain procedures to ensure that the information we collect is accurate, up-to-date, and as complete as possible. If you believe the information we have about you in our records or files is incomplete or inaccurate, you may request that we make additions or corrections, or if it is feasible, that we delete this information from our files. You may make this request by writing (include your name, address, and policy number): Chief Privacy Officer AIG Companies 200 State Street, 4th Floor Boston, MA 02109-2677 Information We Collect We collect information about you that is necessary to tailor our products and services to meet your individual needs, provide effective customer service, and comply with legal requirements. We collect nonpublic personal information about you from the following sources: • Information we receive from you on applications or other forms; • Information about your transactions with us, our affiliates, or others; • Information we receive from a consumer -reporting agency; and • Information received in handling claims. Sharing Information within Our Family of Companies We may share some or all of the nonpublic personal information we collect with our affiliates—the members of the AIG family of companies. In many cases, the information that is shared may be at your request or is necessary to administer, process, or otherwise handle your transactions with us or settle a claim on your behalf. In addition, we may provide this information to our affiliates in order to offer you products and services in which you may be interested. Our family of companies includes many insurance companies (e.g., auto, home, and life insurance), insurance claims handling companies, other financial institutions (e.g., savings bank), and non-financial institutions. Sharing Information outside the AIG Family Sometimes, we use companies or businesses outside the AIG family to administer, process, or otherwise handle your transactions with us, such as for claims handling or customer service. Other times, we may enter into contracts with nonaffiliated companies to perform services on our behalf, such as marketing our products and services; or we may enter into joint marketing agreements with other financial institutions. In these and other circumstances permitted by law, we may share some or all of the information we collect above with these nonaffiliated third parties. However, whenever we utilize a nonaffiliated third parry to provide these services, they are required to follow federal privacy laws governing this notice. We also may share information to combat fraud, in response to a court order, or at the request of government regulators. Important Information Concerning the Applicability and Future Changes to this Privacy Policy This privacy policy applies to products or services provided primarily for personal, family, or household purposes in the United States by the AIG Companies listed below. Although we may change this policy at any time, please rest assured that you will be notified of any changes as required by law. AIG Companies Covered by this Policy: AIU Insurance Company American Home Assurance Company American International Pacific Insurance Company American International South Insurance Company Birmingham Fire Insurance Company of Pennsylvania Commerce and Industry Insurance Company Granite State Insurance Company Illinois National Insurance Co. National Union Fire Insurance Company of Louisiana National Union Fire Insurance Company of Pittsburgh, Pa New Hampshire Insurance Company The Insurance Company of the State of Pennsylvania American International Specialty Lines Insurance Company Landmark Insurance Company Lexington Insurance Company A.I. Risk Specialists Insurance, Inc. A.I. Risk Specialists of Missouri, Inc. American International Entertainment, Inc. Eastern Risk Specialists, Inc. Florida Risk Specialists, Inc. Louisiana Risk Specialists, Inc. Medical Excess Insurance Services, Inc. Michigan Risk Specialists, Inc. Midwestern Risk Specialists, Inc. Nevada Risk Specialists, Inc. New England Risk Specialists, Inc. Northwestern Risk Specialists, Inc. Risk Specialists Companies, Inc. Risk Specialists Company (Bermuda), Ltd. Risk Specialists Company of Colorado, Inc. Risk Specialists Company of Minnesota, Inc. Risk Specialists Company of New Jersey, Inc. Risk Specialists Company of New York, Inc. Risk Specialists Company of Ohio, Inc. Southeastern Risk Specialists, Inc. Southern Risk Specialists, Inc. Western Risk Specialists, Inc. American International Surplus Lines Agency, Inc. AIG Warranty Services and Insurance Agency, Inc. and other member companies of the AIG family who sent you this privacy policy statement. 78554(5/01)