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Case 0:09-cv-60723-AJ

Document 1

Entered

on

FLSD Docket 05/15/2009

I TVDNI?
May 15, 2009

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORIDA FT. LAUDERDALE DIVISION CASE NO.

09-60723-C iv-J ORDAN/MCALI LEY
RESIDENCES AT MIRAMAR CONDOMINIUM ASSOCIATION, INC., a Florida not-for-profit corporation,
EL-AD

Plaintiff,
V.

MT. HAWLEY INSURANCE COMPANY,
a

foreign corporation, WESTCHESTER
LINES
a

SURPLUS COMPANY,

INSURANCE

foreign corporation,

Defendants.

COMPLAINT

ASSOCIATION, Plaintiff, EL-AD RESIDENCES AT MIRAMAR CONDOMINIUM
INC.

("RESIDENCES"), by

and

through
sues

its

undersigned counsel

and

pursuant

to the

Federal Rules of Civil Procedure,

the Defendants, MT. HAWLEY INSURANCE

INSURANCE COMPANY ("MT. HAWLEY") and WESTCHESTER SURPLUS LINES
COMPANY

("WESTCHESTER")

and states:

GENERAL ALLEGATIONS
1.

This is

an

action for declaratory cash

judgment, including supplemental relief,
cost

and breach of contract

(actual

value), breach of contract (replacement
faith and fair

value),

and breach of the

implied warranty of good

dealing, seeking judgment for

damages in

excess

of $75, 000.00 exclusive of interest, costs and

attorneys'

fees.

KATZMAN GARFINKEL ROSENBAUM LLP

250 Australian Avenue South, Suite 500 *West Palm Beach, FL 33401 * Facsimile (561) 820-2542 Telephone (561) 653-2900
"

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El-Ad Residences

Mt.

Hawley

and Westchester

Complaint Page 2
2. Pursuant to 28 U.S.C.

§1332,

this Court has

subject

matter

jurisdiction
costs

because the amount in

controversy exceeds $75, 000.00, exclusive of interest,

and

attorneys' fees,
3.

and there is

complete diversity of citizenship between the parties.
was a

At all material times, RESIDENCES and

condominium association and

not-for-profit corporation organized
and
was

existing

under the laws of the State of Florida,

authorized to do, and continues to do business in Broward

County,

Florida.

RESIDENCES has its
4.

principal place

of business in Broward
was a

County,

Florida. and

At all material times, MT. HAWLEY

foreign corporation
to
a

surplus

lines insurance carrier authorized
to transact insurance in Florida.

by the State of Florida pursuant

letter of

eligibility

5.

At all material times, MT. HAWLEY transacted business in Broward Florida. At all material times, WESTCHESTER
was a

County,
6.

foreign corporation
pursuant
to
a

and

surplus

lines insurance carrier authorized insurance in Florida.

by the State of

Florida

letter of

eligibility to transact
7.

At all material times, WESTCHESTER transacted business in Broward Florida. MT. HAWLEY issued

County,
8.

Policy No. MCP0140064, which provided property
occurrence

coverage to RESIDENCES of $2 million per

for the twelve month

period

beginning September 07, copies of the declaration
Contract")
are

2005 and

ending September 07, 2006.

True and correct

page and insurance

policy (the

"Mt.

Hawley

Insurance

attached

as

Composite Exhibit "A".

KATZMAN GARFINKEL ROSENBAUM LLP

250 Australian Avenue South, Suite 500 Facsimile (561) 820-2542 Telephone (561) 653-2900
*

"

"

West Palm Beach, FL 33401

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El-Ad Residences

Mt.

Hawley

and Westchester

Complaint Page 3
9.

WESTCHESTER issued

Policy

No.

D35910177 001, which

provided

property coverage

to RESIDENCES of $8 million per occurrence in excess of $2 million

per occurrence for the twelve month

period beginning September 07,

2005 and

ending

September 07, 2006.
Insurance

A true and correct copy of the declaration page
is attached
as

(the "Westchester

Contract")

Exhibit

"B"1. Hawley
Insurance Contract and the

10.

The intent and purpose of both the Mt.

Westchester Insurance Contract

(collectively

the "Insurance

Contracts")

are

to

provide

commercial residential property coverage to the named insured, RESIDENCES, for
direct

physical

loss to the

insured

property from September 07,

2005

through

September 07, 2006,

with MT. HAWLEY
occurrence

providing

the first

layer

of coverage in the
the second

amount of $2 million per

and WESTCHESTER
occurrence

providing
in
excess

layer

of

coverage in the amount of $8 million per

of the first

layer.
of

WESTCHESTER is liable for any covered loss, damages and/or judgment in
the first

excess

layer of coverage.
The

11.

Westchester

Insurance

Contract

adopts and

incorporates

by

reference, all terms and conditions of the Mt. Hawley Insurance Contract to the extent
that its terms do not conflict with the express terms and conditions contained in the

Westchester Insurance Contract.
within the Insurance Contracts that
terms
or

With
are

respect

to the material

provisions
are no

contained

relevant to this action, there

conflicting

conditions.

WESTCHESTER has also, through the Westchester Insurance

Contract, expressly adopted and incorporated by reference, the separate "windstorm"
deductible contained within the Westchester Insurance Contract.
1

RESIDENCES has requested a copy of the Westchester received it yet. WESTCHESTER has a copy of the policy.

policy from WESTCHESTER

but has not

KATZMAN GARFINKEL ROSENBAUM LLP *250 Australian Avenue South, Suite 500 *West Palm Beach, FL 33401 Facsimile (561) 820-2542 Telephone (561) 653-2900
*

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Complaint Page 4

El-Ad Residences

Mt.

Hawley

and Westchester

12.

On

or

about October 24, 2005, Hurricane Wilma struck Broward

County,

Florida, including RESIDENCES.
13.
hurricane Wilma. 14. 15.

On

or

about October 24, 2005,

RESIDENCES sustained

significant

damages

to its residential condominium

property

as a

result of Hurricane

RESIDENCES

timely reported the damages

to the Defendants.
an

Following

Hurricane Wilma, MT. HAWLEY and WESTCHESTER had
to the insured

opportunity to inspect the damages
16. To date,
over

property.

three years after Hurricane Wilma, the Defendants have
with any estimate of the

failed to

provide RESIDENCES

damages, and have failed

to

adjust, pay, and/or settle RESIDENCES' claim for hurricane damage, despite their

obligations
Contracts.
17.

to do

so

under Section 627.70131, Florida Statutes, and the Insurance

Venue lies in the Southern District of Florida because, among other things,
were

the Insurance Contracts

entered into and

provided

insurance coverage for

residential property located in Broward
18.

County, Florida.
to the

All conditions

precedent

filing of this action

have occurred and/or

have been waived.

COUNT I DECLARATORY JUDGMENT
19. This is
an

action

by RESIDENCES against

MT.

HAWLEY

and

WESTCHESTER for
which exceeds

declaratory judgment and supplemental relief, the subject
costs and

matter of

$75, 000.00 exclusive of interest,

attorneys' fees, pursuant

to

Chapter 86,

Florida Statutes.
"

KATZMAN GARFINKEL ROSENBAUM LLP

Telephone (561) 653-2900
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250 Australian Avenue South, Suite 500 *West Palm Beach, FL 33401 " Facsimile (561) 820-2542

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El-Ad Residences

Mt.

Hawley and Westchester Complaint Page 5
contained
in

20.

RESIDENCES
1

realleges
as

and

reavers

the

allegations

paragraphs
21.

through

18 above,

if

fully

set forth herein.

RESIDENCES seeks

a

declaratory judgment: (a) that the Mt. Hawley (b) that pursuant
a

Insurance Contract is valid and enforceable;

to the terms and

conditions of the Insurance Contracts, RESIDENCES has
to coverage, and to
a

valid and enforceable

right

determination of the total amount of all damages sustained from
MT. HAWLEY's and/or WESTCHESTER's failure to
Insurance

Hurricane Wilma

notwithstanding

timely adjust, pay and/or settle RESIDENCES' claim; (c) that the Mt. Hawley
Contract fails to

comply

with Section

627.701(a-b), Florida Statutes,

and

627.701(4)(a),
a

Florida Statutes, and therefore, the
hurricane deductible losses and
are

provisions concerning

co-insurance and

separate

void and unenforceable;

(d) determining the total amount of the
RESIDENCES; and (e) awarding
for all of its

damages caused by Hurricane

Wilma to

RESIDENCES

supplemental relief

to

fully compensate RESIDENCES

hurricane related
22.

damages under Chapter 86, Florida Statutes.
a

RESIDENCES also seeks
a

declaratory judgment that the provision
at risk Per
or

concerning

separate deductible of "3% of total values

Building (including
Hail" is vague and

time element if

applicable)

at the time of loss for Windstorm

ambiguous.

The term "Windstorm" is not defined. The amount of the
or

separate
a

deductible for Windstorm

Hail is not stated

as a sum

certain. RESIDENCES seeks

declaratory judgment that the failure

to define the term "Windstorm" renders the to state

applicability

of the
as

separate deductible vague, ambiguous. Moreover, the failure
a

the deductible

sum

certain renders the amount of the deductible vague and

ambiguous. Because

the

separate deductible is vague, ambiguous, and otherwise

KATZMAN GARFINKEL ROSENBAUM LLP

*

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El-Ad Residences

Mt.

Hawley

and Westchester

Complaint Page 6
violates Section 627.701, Florida Statutes, construed
it is unenforceable and/or should be and

against
a

MT.

HAWLEY

and

WESTCHESTER.

Plaintiff

further

alternatively seeks
deductible
can

declaratory judgment that,

to the extent the amount of the

separate

be ascertained, it must be construed to indicate that the maximum
or

separate deductible for Windstorm
offered under the Mt. under the Mt.
23.

Hail loss is 3% of the $2 million limit of coverage

Hawley

Insurance Contract because $2 million is all that is "at risk"

Hawley Insurance Contract.
MT. HAWLEY's and WESTCHESTER's actions have raised doubt and

insecurity
Insurance

for RESIDENCES

regarding:

the

validity, enforceability

and scope of the

Contracts; the total amount of the covered damages RESIDENCES

sustained from Hurricane Wilma; MT. HAWLEY's and WESTCHESTER's duties to

timely adjust,

pay and/or settle RESIDENCES' claim for all

damages sustained from

Hurricane Wilma; the hurricane deductible
to be
case.

validity and enforceability of the co-insurance and separate
Mt.

provision of the

Hawley

Insurance Contract; and, if determined

enforceable, the amount of the separate hurricane deductible to be applied in this

24.

Paragraphs
01 25 06

E.4 and 0.3

(form

CP 00 17 04

02)

as

well

as

paragraph

D

(form CP

95) of the Mt. Hawley Insurance Contract, and the Westchester

Insurance Contract,

together

with Section 627.70131, Florida Statutes,

require

MT.

HAWLEY and WESTCHESTER to claims for the

timely adjust, pay and/or

settle RESIDENCES'
MT. HAWLEY and

damages

it sustained from Hurricane Wilma.

WESTCHESTER have failed to
RESIDENCES is entitled to
a

adjust,

pay and/or settle RESIDENCES' claims.
Insurance Contracts and

declaratory judgment that the

KATZMAN GARFINKEL ROSENBAUM LLP *250 Australian Avenue South, Suite 500 *West Palm Beach, FL 33401 Facsimile (561) 820-2542 Telephone (561) 653-2900
*

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El-Ad Residences

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Hawley and Westchester Complaint Page 7
pay and/or

Florida law

require

MT. HAWLEY and WESTCHESTER to

timely adjust,

settle RESIDENCES' hurricane 25.
Wilma and

damage claims.

RESIDENCES suffered extensive losses and damages from Hurricane

timely notified MT. HAWLEY and WESTCHESTER of
MT. HAWLEY and WESTCHESTER have failed to

those losses and

damages.

adjust the claim and

determine the total amount of

damages that RESIDENCES sustained from Hurricane declaratory judgment
to determine the total amount to

Wilma. RESIDENCES is entitled to

of its Hurricane Wilma

damages and for supplemental relief

fully compensate

RESIDENCES for its Hurricane Wilma losses and damages.
26.
The Insurance Contracts fail to

comply with Section 627.701, Florida
a

Statutes, because the faces of the Insurance Contracts do not contain
notice
as

co-insurance
a

is

required. Further,

the faces of the Insurance Contracts fail to contain
as

separate hurricane deductible notice
and bold faced type size
27.

required

and/or fail to

comply

with the

wording

requirements

set forth in Section 627.701, Florida Statutes.
a

RESIDENCES is entitled to

declaratory judgment that the co-insurance
are

and

Contract separate hurricane deductible provisions of the Mt. Hawley Insurance

void and unenforceable because the Mt. with the

Hawley

Insurance Contract does not

comply

requirements

set forth in Section

627.701(1)(a-b),

Florida Statutes, and Section

627.701(4)(a),
28.

Florida Statutes.
to the extent that the

Alternatively,

separate hurricane deductible

is

determined to be enforceable, RESIDENCES is entitled to declaratory

judgment that the applicable)
at

language "3% of total values

at risk Per
or

Building (including time

element if
so

the time of loss for Windstorm

Hail" must be construed

that the maximum

KATZMAN GARFINKEL ROSENBAUM LLP

"

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El-Ad Residences

Mt.

Hawley and

Westchester

Complaint Page 8
deductible to be

applied for all buildings combined is 3% of Hawley
Insurance Contract.

the $2 million limit of

coverage under the Mt.
29.

RESIDENCES, MT. HAWLEY and WESTCHESTER have present, actual,

adverse and

antagonistic

interests in the

validity

and

enforceability

of the Insurance

Contracts; the full amount of RESIDENCES' losses and damages from Hurricane

Wilma; the coverage provided by the Insurance Contracts; the validity and enforceability
of the co-insurance and separate hurricane deductible

provision

of the Mt.

Hawley
in this

Insurance Contract; and, the amount of the hurricane deductible to be
case.

applied

30.

RESIDENCES' adverse and

antagonistic

interests

are

before this Court

by

proper process. advice. 31.

The relief RESIDENCES seeks is not the

mere

rendering of legal

RESIDENCES has

a

bona

fide, present and practical need for

a

declaration of its 32.

rights

under the Insurance Contracts.

RESIDENCES has retained the

undersigned attorneys

to

represent it in

this action and is 33.

required

to pay them

a

reasonable fee for their services.
to
recover

RESIDENCES

is

entitled

its

reasonable

attorneys' fees

pursuant

to Section

627.428, Florida Statutes, which provides in pertinent part:
of
a

judgment or decree by any of the against an insurer and in favor of any named or omnibus insured or the named beneficiary under a policy or contract executed by the insurer, the trial court or, in the event of an appeal in which the insured or beneficiary prevails, the appellate court shall adjudge or decree against the insurer and in favor of the insured or beneficiary a reasonable sum as fees or compensation for the insured's or beneficiary's attorney prosecuting the suit in which the Upon the rendition
courts of this state

recovery is had.
KATZMAN GARFINKEL ROSENBAUM LLP
"

Telephone (561) 653-2900
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250 Australian Avenue South, Suite 500 *West Palm Beach, FL 33401 Facsimile (561) 820-2542
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34.

Alternatively, Section 626.911,

Florida Statutes,

provides

in

pertinent part:

In any action against an unauthorized foreign insurer, alien insurer, or person representing or aiding such an insurer, upon a contract of insurance issued or delivered in this state to a resident thereof or to a corporation authorized to do business therein, if the insurer or person representing or aiding such insurer has failed for 30 days after demand prior to the commencement of the action to make payment in accordance with the terms of the contract, the trial judge shall allow to the plaintiff a reasonable attorney's fee or compensation and include such fee or compensation in any judgment that may be rendered in such action. 35.
to Section

RESIDENCES is further entitled to

recover

prejudgment

interest

pursuant

627.70131, Florida Statutes.
a

WHEREFORE, RESIDENCES requests the Court enter

declaratory judgment
are

against

MT. HAWLEY and WESTCHESTER

(a)

that the Insurance Contracts

valid

and enforceable;

(b) that pursuant
a

to the terms and conditions of the Insurance

Contracts, RESIDENCES has

valid and enforceable

right

to coverage,

and

a

determination of the total amount of all damages RESIDENCES sustained from
Hurricane Wilma;

(c) determining the total (d)

amount of the losses and that the Mt.

damages caused

by
to

Hurricane Wilma to RESIDENCES;

Hawley

Insurance Contract fails

comply

with Section 627.701, Florida Statutes, and therefore, the co-insurance and
are

separate hurricane deductible provisions
the

void and unenforceable;
at risk Per
or

(e) that because

provision concerning

a

separate "3% of total values

Building (including ambiguous, it is

time element if

applicable)

at the time of loss for Windstorm

Hail" is

unenforceable

against RESIDENCES
(f)

and/or

should

be

construed

against

MT.

HAWLEY and WESTCHESTER;

if determined enforceable, the

separate hurricane

deductible is 3% of the $2 million limit of coverage under the Mt.

Hawley

Insurance

KATZMAN GARFINKEL ROSENBAUM LLP *250 Australian Avenue South, Suite 500 *West Palm Beach, FL 33401 Facsimile (561) 820-2542 Telephone (561) 653-2900
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Hawley

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Complaint Page 10

Contract; (g) awarding supplemental relief to fully compensate RESIDENCES for all of
its hurricane related

damages under Chapter 86, Florida Statutes; and, (h) awarding attorneys' fees
under Section 627.428, Florida Statutes,

RESIDENCES its reasonable
or

in the alternative, under Section 626.911, Florida Statutes,

together

with taxable

costs, prejudgment interest under Section 627.70131, Florida Statutes, and any other
and further relief the Court deems

just, equitable and

proper.

COUNT II BREACH OF CONTRACT AGAINST MT. HAWLEY (Actual Cash Value)

36.

This is

an

action

against

MT. HAWLEY for breach of the Mt.
excess

Hawley

Insurance Contract

seeking damages

in

of

$75, 000.00, exclusive of interest,

costs, and attorneys' fees.
37.

RESIDENCES
as

realleges the allegations contained

in

paragraphs

1

through 18 above,
38. In
or

if fully set forth herein.

about

September, 2005, MT. HAWLEY offered (12)
or

to

provide property

coverage to RESIDENCES for the twelve 2005 in consideration for
a

month about

period commencing September 7, September, 2005, RESIDENCES

premium.

In

accepted
39.

MT. HAWLEY's offer of
The Mt.

property coverage and paid the premium.

Hawley

Insurance Contract set forth the

rights

and

obligations

of

MT. HAWLEY to RESIDENCES with

respect to its claim, including among other things,

the

following pertinent terms and conditions:
We will determine the value of lost or damaged property, or the cost of its repair or replacement, in accordance with the applicable terms of the Valuation condition in this Coverage Form or any applicable provision which amends or supersedes the Valuation Condition.
KATZMAN GARFINKEL ROSENBAUM LLP
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Hawley

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Complaint Page 11

See Composite Exhibit "A",

Paragraph
*

E.4.a.
* *

You may make a claim for loss or damage covered by this insurance on an actual cash value basis instead of on a replacement cost basis. In the event you elect to have loss or damage settled on an actual cash value basis, you may still make a claim for the additional coverage this Optional

Coverage provides...
See Composite Exhibit "A", 40. Pursuant
a

Paragraph
terms

G.3.c. of the Mt.

to

the

Hawley
losses
or

Insurance

Contract,

RESIDENCES has
Hurricane Wilma.
41. In
or

right

to coverage for

property

damages caused by

about October, 2005

through October, 2008, and continuing

to the

present time, MT. HAWLEY has materially breached the Mt. Hawley Insurance Contract

by failing
caused

to pay the actual cash value of the losses

or

damages

to the insured

property

by Hurricane Wilma.
In
or

42.

about November, 2005, and at other times
a

following Hurricane

Wilma, RESIDENCES made
Hurricane Wilma and

claim for the losses and
to be

damages caused from

requested

paid

the actual cash value due under the Mt.

Hawley

Insurance Contract.

43.

Notwithstanding RESIDENCES' claim, MT. HAWLEY has
or

not determined

the value of the lost

damaged property

and has not

paid RESIDENCES

the full actual

cash value due under the Mt. contends that the claim.

Hawley Insurance

Contract.

Instead, MT. HAWLEY

majority of the

loss is under deductible and, otherwise, has denied the

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44.

MT. HAWLEY breached the Mt.
claim and
to

Hawley

Insurance Contract

by failing

to
or

accurately adjust RESIDENCES'

properly

determine the value of its lost

damaged property
lost
or

and

by failing

fully

pay RESIDENCES the actual cash value of the

damaged property.
45. MT. HAWLEY further breached the Mt.

Hawley

Insurance Contract

by

failing
in
so

to

correctly adjust, fully

pay

or

settle RESIDENCES' actual cash value claim and

doing,

frustrated RESIDENCES'

ability

to make the

repairs necessitated by

Hurricane Wilma. 46. As
a

direct result of MT. HAWLEY's material breaches of the Mt.

Hawley

Insurance Contract, RESIDENCES has suffered millions of dollars in 47.

damages.
to

RESIDENCES has retained the

undersigned attorneys

represent it in

this action and is 48.

required

to pay them

a

reasonable fee for their services.
to
recover

RESIDENCES

is

entitled

its

reasonable
in

attorneys'

fees

pursuant to Section 627.428, Florida Statutes, which provides

pertinent part:

Upon the rendition of a judgment or decree by any of the courts of this state against an insurer and in favor of any named or omnibus insured or the named beneficiary under a policy or contract executed by the insurer, the trial court or, in the event of an appeal in which the insured or beneficiary prevails, the appellate court shall adjudge or decree against the insurer and in favor of the insured or beneficiary a reasonable sum as fees or compensation for the insured's or beneficiary's attorney prosecuting the suit in which the
recovery is had. 49.

Alternatively,

Section 626.911, Florida Statutes,

provides

in

pertinent part:

In any action against an unauthorized foreign insurer, alien insurer, or person representing or aiding such an insurer, upon a contract of insurance issued or delivered in this state to a resident thereof or to a corporation authorized to do business there, if the insurer or person representing or
KATZMAN GARFINKEL ROSENBAUM LLP *250 Australian Avenue South, Suite 500 * Facsimile (561) 820-2542 Telephone (561) 653-2900
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"

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Complaint Page 13

aiding such insurer has failed for 30 days after demand prior
to the commencement of the action to make payment in accordance with the terms of the contract, the trial judge shall allow to the plaintiff a reasonable attorney's fee or

compensation and include such fee or compensation judgment that may be rendered in such action.
50.
to Section

in any

RESIDENCES is further entitled to

recover

prejudgment

interest

pursuant

627.70131, Florida Statutes.

WHEREFORE, RESIDENCES demands judgment against MT. HAWLEY for

compensatory damages, together with interest,
627.428, Florida Statutes,
or

costs and

attorneys'

fees under Section

in the alternative, under Section 626.911, Florida Statutes,

together with taxable costs, prejudgment interest under Section 627.70131, Florida
Statutes, and other such relief
as

this Court deems

just, equitable

and proper.

COUNT III BREACH OF CONTRACT AGAINST MT. HAWLEY (Replacement Cost Value)
51. Mt. This is
an

action

by RESIDENCES against

MT. HAWLEY for breach of the
excess

Hawley

Insurance Contract

(replacement

cost

value) seeking damages in

of

$75, 000.00, exclusive of interest, costs, and attorneys' fees.
52.

RESIDENCES
1

reavers

and

realleges

the

allegations

contained

in

paragraphs
53.

through
The Mt.

18 above,

as

if fully set forth herein.

Hawley

Insurance Contract sets forth the

rights

and

obligations of

MT. HAWLEY to RESIDENCES with the

respect

to its

claim, including among other things,

following pertinent terms

and conditions:
* * *

We will determine the value of lost or damaged property, or the cost of its repair or replacement, in accordance with the applicable terms of the Valuation condition in this Coverage
KATZMAN GARFINKEL ROSENBAUM LLP
*

Telephone (561) 653-2900
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250 Australian Avenue South, Suite 500 *West Palm Beach, FL 33401 Facsimile (561) 820-2542
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Form

or

any

applicable provision Paragraph

which amends

or

supersedes

the Valuation Condition.
E.4.a.

See Composite Exhibit "A",

You may make a claim for loss or damage covered by this insurance on an actual cash value basis instead of on a replacement cost basis. In the event you elect to have loss or damage settled on an actual cash value basis, you may still make a claim for the additional coverage this Optional

Coverage provides...
See Composite Exhibit "A",
54.

Paragraph

G.3.c.

Pursuant to the terms and conditions of the Mt.
a

Hawley
or

Insurance

Contract, RESIDENCES has

right to

coverage for

property

losses

damages caused

by Hurricane Wilma.
55. In
or

about October, 2005, and at other times
a

following Hurricane Wilma,

RESIDENCES made

claim to MT. HAWLEY for the losses and damages caused from

Hurricane Wilma and has cash and

requested

that MT. HAWLEY pay RESIDENCES the actual

replacement

cost values for its losses and

damages,

as

provided by

the Mt.

Hawley Insurance Contract.
56.

Notwithstanding RESIDENCES' claim, MT. HAWLEY
or

has not determined

the value of the lost

damaged property

and has not

paid

to RESIDENCES the actual

cash value and the
Contract.

replacement

cost value due under the Mt.

Hawley Insurance

under Instead, MT. HAWLEY contends that the majority of the loss is

deductible and has otherwise denied the claim.
57.

MT. HAWLEY

materially breached the Mt. Hawley
to

Insurance Contract the

by
the

failing

to

adjust RESIDENCES' claim, failing

determine

value

of

KATZMAN GARFINKEL ROSENBAUM LLP

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RESIDENCES' lost

or

destroyed property,
replacement

and

by failing

to pay RESIDENCES the
or

actual cash value and the
58.

cost value of the lost

damaged property.

MT. HAWLEY further breached the Mt.
to do
so

Hawley Insurance Contract, and is

continuing

by failing
doing

to

adjust, pay and/or settle RESIDENCES' actual cash ability
to make the

value claim and, in

so, frustrated RESIDENCES'

repairs
on
a

necessary for RESIDENCES to

receive the reimbursements for its claim

replacement

cost

basis, which constitutes yet another breach of the Mt. Hawley

Insurance Contract.

59.

As

a

direct and

proximate result

of MT. HAWLEY's breaches of the Mt.

Hawley

Insurance Contract, RESIDENCES has suffered millions of dollars in

damages.

60.

RESIDENCES has retained the undersigned attorneys to represent it in

this action and is

required

to pay them

a

reasonable fee for their services.
recover

61.

RESIDENCES is entitled to

its

reasonable
in

attorneys'

fees

pursuant to Section 627.428,

Florida Statutes, which

provides

pertinent part:

the Upon the rendition of a judgment or decree by any of insurer and in favor of any courts of this state against an named or omnibus insured or the named beneficiary under a policy or contract executed by the insurer, the trial court or, in the event of an appeal in which the insured or beneficiary prevails, the appellate court shall adjudge or decree against the insurer and in favor of the insured or beneficiary a reasonable sum as fees or compensation for the insured's or beneficiary's attorney prosecuting the suit in which the recovery is had. 62.

Alternatively, Section 626.911, Florida Statutes, provides
In any action

in

pertinent part:

contract of insurance issued or delivered in this state to a resident thereof or to a corporation authorized to do business there, if the insurer or person representing or upon
a
500 *West Palm Beach, FL 33401 KATZMAN GARFINKEL ROSENBAUM LLP *250 Australian Avenue South, Suite Facsimile (561) 820-2542 Telephone (561) 653-2900
*

insurer,

or

against an unauthorized foreign insurer, alien person representing or aiding such an insurer,

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insurer has failed for 30 days after demand prior to the commencement of the action to make payment in accordance with the terms of the contract, the trial judge shall allow to the plaintiff a reasonable attorney's fee or compensation and include such fee or compensation in any judgment that may be rendered in such action.

aiding such

63.
to Section

RESIDENCES is further entitled to

recover

prejudgment

interest

pursuant

627.70131, Florida Statutes.

WHEREFORE, RESIDENCES demands judgment against MT. HAWLEY for
Section compensatory damages, together with interest, costs and attorneys' fees under

627.428, Florida Statutes,

or

in the alternative, under Section 626.911, Florida Statutes,

together

with taxable costs,

prejudgment
as

interest under Section 627.70131, Florida

Statutes, and other such relief

this Court deems

just, equitable and proper.

COUNT IV BREACH OF IMPLIED WARRANTY OF GOOD FAITH AND FAIR DEALING AGAINST MT. HAWLEY
64.

This is

an

action

by RESIDENCES against
the

MT. HAWLEY for breach of
matter of which exceeds

implied warranty of good faith and fair dealing,

subject

$75, 000, exclusive of interest, costs and attorneys' fees.
65.

RESIDENCES
1

realleges and
as

reavers

the

allegations contained

in

paragraphs
66.

through
An

18 above,

if

fully

set forth herein.

implied warranty of good faith and fair dealing including
the Mt.

is

a

material term in

every Florida contract, 67. The Mt.

Hawley

Insurance Contract.

Hawley

Insurance Contract does not

specify

the

permissibility

or

the express terms of the Mt. scope of MT. HAWLEY's conduct in relation to Insurance Contract and is unclear.

Hawley

68.

The Mt.

Hawley Insurance Contract
"

states:

KATZMAN GARFINKEL ROSENBAUM LLP

Telephone
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We will determine the value of lost or damaged property or the cost of its repair or replacement, in accordance with the applicable terms of the Valuation Condition in this Coverage Form or any applicable provision which amends or supersedes the Valuation Condition.

See Composite Exhibit "A",
69. The Mt.

Paragraph E.4.g.

Hawley Insurance Contract neither defines the standards
nor

governing

MT. HAWLEY's exercise of its discretion

provides
value
a

standards

governing

the time-frame within which MT. HAWLEY must 70.

adjust

or

claim.
not

Although

the Mt.

Hawley Insurance Contract does

specify

the time-

frame within which MT. HAWLEY must determine the value of RESIDENCES' claim, RESIDENCES reasonable

reasonably expected
of time

MT. HAWLEY to exercise its discretion within
the
nature

a

amount

given

of the

loss

and

the

attendant

circumstances.
71.

Some

three

years

later,

through

its

delay and

failure

to

adjust

RESIDENCES' claim, MT. HAWLEY continues to of the Mt.

deprive RESIDENCES of the benefits
on

Hawley

Insurance Contract.

Following Hurricane Wilma
the

October 24, 2005
covenant of
or

and

continuing

to the

present, MT. HAWLEY has breached
and

implied

good

faith and fair

dealing by delaying

failing

to

reasonably

value the losses

damage RESIDENCES sustained during Hurricane Wilma; delaying and failing

to

reasonably
damaged

determine the cost to
lost

repair

or

replace RESIDENCES' property delaying
and

that

was

or

during

Hurricane Wilma;
as

failing
or

to make reasonable

efforts to agree with RESIDENCES
the cost of its

to the value of the lost

damaged property
adjust the

or

repair

or

replacement and failing
and

to value and/or

loss with

RESIDENCES

promptly

reasonably given

the attendant circumstances.

KATZMAN GARFINKEL ROSENBAUM LLP

"

Telephone (561) 653-2900
17 of 109

250 Australian Avenue South, Suite 500 *West Palm Beach, FL 33401 Facsimile (561) 820-2542
*

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72. MT. HAWLEY's

delay

and failure to

timely adjust RESIDENCES'

claim

has frustrated the purpose of the Mt.

Hawley Insurance Contract and had disappointed

RESIDENCES' reasonable commercial
Contract.
73. As
a

expectations under

the Mt.

Hawley

Insurance

direct result of MT. HAWLEY's breaches of the

implied warranty

of

good

faith and fair

dealing

in the Mt.

Hawley

Insurance Contract, RESIDENCES has

suffered

general compensatory damages

in the millions of dollars.

RESIDENCES has

also suffered

special damages, including, but
hurricane related roof
or

not limited to, the expenses of

defending

liens

resulting from adjust,
pay

repairs for which MT. HAWLEY unreasonably

failed to

settle.

74.

RESIDENCES has retained the
a

undersigned attorneys and

is

obligated

to

pay them
75.

reasonable fee for their services. RESIDENCES
is entitled
to
recover

its

reasonable
in

attorneys'

fees

pursuant to Section 627.428, Florida Statutes,

which

provides

pertinent part:

Upon rendition of a judgment of decree by any of the courts of this state against an insurer and in favor of any named or omnibus insured or the named beneficiary under a policy or contract executed by the insurer, the trial court or, in the event of an appeal in which the insured or beneficiary prevails, the appellate court shall adjudge or decree against the insurer and in favor of the inured beneficiary a reasonable sum as fees or compensation for the insured's of beneficiary's attorney prosecuting the suit in which the
recovery is had. 76.

Alternatively, Section 626.911,

Florida Statutes,

provides

in

pertinent part:

In any action against an unauthorized foreign insurer, alien insurer, or person representing or aiding such an insurer, upon a contract of insurance issued or delivered in this state to a resident thereof or to a corporation authorized to do business there, if the insurer or person representing or
KATZMAN GARFINKEL ROSENBAUM LLP *250 Australian Avenue South, Suite 500 *West Palm Beach, FL 33401 Facsimile (561) 820-2542 Telephone (561) 653-2900
*

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insurer has failed for 30 days after demand prior to the commencement of the action to make payment in accordance with the terms of the contract, the trial judge shall allow to the plaintiff a reasonable attorney's fee or compensation and include such fee or compensation in any judgment that may be rendered in such action.

aiding such

77.
to Section

RESIDENCES is further entitled to

recover

prejudgment

interest

pursuant

627.70131, Florida Statutes

WHEREFORE, RESIDENCES demands judgment against MT. HAWLEY for

compensatory damages and special damages, together with interest, attorneys' fees
deems under 627.428, Florida Statutes, and such other relief and proper.
as

costs

and

this Court

just, equitable

COUNT V BREACH OF CONTRACT AGAINST WESTCHESTER (Actual Cash Value)
78. This is
an

action

by RESIDENCES against WESTCHESTER for breach of seeking damages
fees.
in

the Westchester Insurance Contract exclusive of interest, costs, and 79.

in

excess

of $75, 000.00,

attorneys'

RESIDENCES
as

realleges the allegations contained
set forth herein.

paragraphs

1

through

18 above, In
or

if

fully

80.

about

September, 2005, WESTCHESTER offered

to

provide property

coverage to RESIDENCES for the twelve month 2005 in consideration for
a

period commencing September 7,

premium.

In

or

about

September, 2005, RESIDENCES

accepted WESTCHESTER's offer of property coverage and paid the premium.
81. The Westchester Insurance Contract

adopted and incorporated by

reference, the terms and conditions of the Mt. Hawley Insurance Contract. Accordingly,
the

following

terms and conditions of the Mt.
"

Hawley

Insurance Contract set forth the

KATZMAN GARFINKEL ROSENBAUM LLP

Telephone (561) 653-2900
19 of 109

250 Australian Avenue South, Suite 500 *West Palm Beach, FL 33401 Facsimile (561) 820-2542
*

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rights and obligations

of WESTCHESTER to RESIDENCES with the

respect

to its claim,

including among other things,

following pertinent terms and conditions:

We will determine the value of lost or damaged property, or the cost of its repair or replacement, in accordance with the applicable terms of the Valuation condition in this Coverage Form or any applicable provision which amends or

supersedes

the Valuation Condition.

See Composite Exhibit "A",

Paragraph
a

E.4.a.

You may make

claim for loss or damage covered by this insurance on an actual cash value basis instead of on a replacement cost basis. In the event you elect to have loss or damage settled on an actual cash value basis, you may still make a claim for the additional coverage this Optional

Coverage provides...
See Composite Exhibit "A",

Paragraph

G.3.c.

82.

Pursuant to the terms of the Mt.

Hawley

Insurance Contract,
a

as

adopted

by the Westchester
for loss
or

Insurance Contract, RESIDENCES has

right

to

property coverage

damages caused by Hurricane Wilma.
In
or

83.

about October, 2005
has

through October, 2008, and continuing

to the

present time, WESTCHESTER
Contract

materially breached

the Westchester Insurance
or

by failing

to pay the actual cash value of the losses

damages

to the insured

property caused by Hurricane Wilma.
84. In
or

about November, 2005, and/or at other times
a

following Hurricane

Wilma, RESIDENCES made
Hurricane Wilma and

claim for the losses and
to be

damages caused from

requested

paid

the actual cash value due under the

Westchester Insurance Contract.

KATZMAN GARFINKEL ROSENBAUM LLP

"

250 Australian Avenue South, Suite 500
*

"

West Palm Beach, FL 33401

Telephone (561) 653-2900
20 of 109

Facsimile

(561) 820-2542

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85.

Notwithstanding

RESIDENCES'
or

claim,

WESTCHESTER

has

not

determined the value of the lost

damaged property

and has not

paid RESIDENCES
Instead,

the actual cash value due under the Westchester Insurance Contract.

WESTCHESTER, through its delay and failure
86.
to

to pay, has

effectively denied

the claim.

WESTCHESTER breached the Westchester Insurance Contract claim and determine the value of its lost
or

by failing

adjust RESIDENCES'
by failing

damaged property
or

and

to pay RESIDENCES the actual cash value of the lost

damaged

property.
87.

WESTCHESTER further breached the Westchester Insurance Contract

by
so

failing

to

adjust, pay

and/or settle RESIDENCES' actual cash value claim and in
to make the

doing, frustrated RESIDENCES' ability
Wilma. 88. As
a

repairs necessitated by Hurricane

direct and

proximate result of WESTCHESTER's material breaches

of the Westchester Insurance Contract, RESIDENCES has suffered millions of dollars in

damages.
89.

RESIDENCES has retained the

undersigned attorneys

to

represent it

in

this action and is 90.

required

to pay them

a

reasonable fee for their services.
to
recover

RESIDENCES

is

entitled

its

reasonable

attorneys'

fees

pursuant to Section 627.428, Florida Statutes, which provides in pertinent part:
the rendition of a judgment or decree by any of the courts of this state against an insurer and in favor of any named or omnibus insured or the named beneficiary under a policy or contract executed by the insurer, the trial court or,

Upon

in the event of an appeal in which the insured or beneficiary prevails, the appellate court shall adjudge or decree against the insurer and in favor of the insured or beneficiary a reasonable sum as fees or compensation for the insured's or
KATZMAN GARFINKEL ROSENBAUM LLP *250 Australian Avenue South, Suite 500 *West Palm Beach, FL 33401 Facsimile (561) 820-2542 Telephone (561) 653-2900
*

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beneficiary's attorney prosecuting
recovery is had. 91.

the suit in which the

Alternatively,

Section 626.911, Florida Statutes,

provides

in

pertinent part:

In any action against an unauthorized foreign insurer, alien insurer, or person representing or aiding such an insurer, in this state upon a contract of insurance issued or delivered authorized to do to a resident thereof or to a corporation business there, if the insurer or person representing or aiding such insurer has failed for 30 days after demand prior to the commencement of the action to make payment in accordance with the terms of the contract, the trial judge shall allow to the plaintiff a reasonable attorney's fee or and include such fee or compensation in any

compensation judgment that may

be rendered in such action.
recover

92.

RESIDENCES is further entitled to

prejudgment

interest

pursuant

to Section 627.70131, Florida Statutes.

for WHEREFORE, RESIDENCES demands judgment against WESTCHESTER fees under Section compensatory damages, together with interest, costs and attorneys'

627.428, Florida Statutes,

or

in the alternative, under Section 626.911, Florida Statutes,

together

with taxable costs,

prejudgment
as

interest under Section 627.70131, Florida

Statutes, and other such relief

this Court deems

just, equitable and proper.

COUNT VI BREACH OF CONTRACT AGAINST WESTCHESTER (Replacement Cost Value) 93.
This is
an

action

by RESIDENCES against WESTCHESTER for breach of

the Westchester Insurance Contract
excess

(replacement

cost

value) seeking damages
fees.

in

of $75, 000.00, exclusive of interest, costs, and

attorneys'
the

94.

RESIDENCES
1

reavers

and

realleges

allegations contained

in

paragraphs

through

18 above,

as

if

fully

set forth herein.

KATZMAN GARFINKEL ROSENBAUM LLP

*

Telephone (561) 653-2900
22 of 109

250 Australian Avenue South, Suite 500 *West Palm Beach, FL 33401 * Facsimile (561) 820-2542

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95. The Westchester Insurance Contract

adopted and incorporated the Accordingly,

terms

and conditions of the Mt.

Hawley

Insurance Contract.

the terms and

conditions contained in the Mt.

Hawley

Insurance Contract set forth the

rights

and

obligations

of WESTCHESTER to RESIDENCES with

respect

to its

claim, including

among other

things,

the

following pertinent terms and conditions:

We will determine the value of lost or damaged property, or the cost of its repair or replacement, in accordance with the applicable terms of the Valuation condition in this Coverage Form or any applicable provision which amends or supersedes the Valuation Condition.

See Composite Exhibit "A",

Paragraph

E.4.a.

You may make a claim for loss or damage covered by this insurance on an actual cash value basis instead of on a replacement cost basis. In the event you elect to have loss or damage settled on an actual cash value basis, you may still make a claim for the additional coverage this Optional

Coverage provides...
See Composite Exhibit "A", 96.

Paragraph

G.3.c.

Pursuant to the terms and conditions of the Mt.
as

Hawley

Insurance
a

Contract,
to

adopted by

the Westchester Insurance Contract, RESIDENCES has
or

right

property coverage
97.
In
or

for loss

damages caused by Hurricane Wilma. following
Hurricane

about October, 2005, and/or at other times
a

Wilma, RESIDENCES made
caused
from Hurricane

claim to WESTCHESTER for the losses and

damages
pay

Wilma

and

has

requested

that

WESTCHESTER

RESIDENCES the actual cash and replacement cost values for its losses and damages,
as

provided by the Westchester

Insurance Contract.

KATZMAN GARFINKEL ROSENBAUM LLP

Telephone
23 of 109

250 Australian Avenue South, Suite 500 Facsimile (561) 820-2542 (561) 653-2900
" *

"

West Palm Beach, FL 33401

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98.

Notwithstanding

RESIDENCES'
or

claim,

WESTCHESTER
has not

has

not

determined the value of the lost
the actual cash value and the

damaged property and

paid RESIDENCES

replacement

cost value due under the Westchester

Insurance Contract. Instead, WESTCHESTER,

through

its

delay

and failure to pay, has

effectively
99.

denied the claim.

WESTCHESTER
to

materially

breached the Westchester Insurance Contract
to

by failing

adjust RESIDENCES' claim, failing
or

determine the value of the
to pay RESIDENCES the
or

RESIDENCES' lost

destroyed property,

and

by failing

actual cash value and the 100.
and is

replacement

cost value of the lost

damaged property.

WESTCHESTER further breached the Westchester Insurance Contract,
to do so

continuing

by failing

to

adjust,

pay and/or settle RESIDENCES' actual

cash value claim and, in

doing

so, frustrated RESIDENCES'

ability

to make the

repairs
on
a

necessary for RESIDENCES to receive the reimbursements for its claim

replacement

cost basis, which constitutes

yet another breach of the Westchester

Insurance Contract. 101. As
a

direct and

proximate

result of WESTCHESTER's breaches of the

Westchester Insurance Contract, RESIDENCES has suffered millions of dollars in

damages.
102.

RESIDENCES has retained the

undersigned attorneys

to

represent it in

this action and is

required

to pay them

a

reasonable fee for their services.
to
recover

103.

RESIDENCES

is

entitled

its

reasonable

attorneys'

fees

pursuant to Section 627.428, Florida Statutes, which provides in pertinent part:
the rendition of a judgment or decree by any of the courts of this state against an insurer and in favor of any

Upon

KATZMAN GARFINKEL ROSENBAUM LLP *250 Australian Avenue South, Suite 500 *West Palm Beach, FL 33401 * Facsimile (561) 820-2542 Telephone (561) 653-2900
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omnibus insured or the named beneficiary under a policy or contract executed by the insurer, the trial court or, in the event of an appeal in which the insured or beneficiary prevails, the appellate court shall adjudge or decree against the insurer and in favor of the insured or beneficiary a reasonable sum as fees or compensation for the insured's or attorney prosecuting the suit in which the named
or

beneficiary's

recovery is had.
104.

Alternatively, Section 626.911, Florida Statutes, provides
In any action

in

pertinent part:

contract of insurance issued or delivered in this state upon to a resident thereof or to a corporation authorized to do business there, if the insurer or person representing or aiding such insurer has failed for 30 days after demand prior to the commencement of the action to make payment in accordance with the terms of the contract, the trial judge shall allow to the plaintiff a reasonable attorney's fee or and include such fee or compensation in any
a

insurer,

or

against an unauthorized foreign insurer, alien person representing or aiding such an insurer,

compensation judgment that may

be rendered in such action.
recover

105.
to Section

RESIDENCES is further entitled to

prejudgment

interest

pursuant

627.70131, Florida Statutes.

for WHEREFORE, RESIDENCES demands judgment against WESTCHESTER

compensatory damages, together with interest,
627.428, Florida Statutes,
or

costs and

attorneys'

fees under Section

in the alternative, under Section 626.911, Florida Statutes,

together

with taxable costs,

prejudgment
as

interest under Section 627.70131, Florida

Statutes, and other such relief

this Court deems

just, equitable and proper.

COUNT VII BREACH OF IMPLIED WARRANTY OF GOOD FAITH AND FAIR DEALING AGAINST WESTCHESTER
106. This is
an

action

of by RESIDENCES against WESTCHESTER for breach matter of which exceeds

implied warranty of good faith and fair dealing, the subject
$75, 000, exclusive of interest, costs and attorneys' fees.

Suite 500 *West Palm Beach, FL 33401 KATZMAN GARFINKEL ROSENBAUM LLP *250 Australian Avenue South, Facsimile (561) 820-2542 653-2900 Telephone (561)
*

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Hawley and Westchester Complaint Page 26
in

107.

RESIDENCES
1

realleges and
as

reavers

the

allegations contained

paragraphs
108.

through
An

18 above,

if fully set forth herein.

implied warranty

of

good

faith and fair

dealing is

a

material term in

every Florida contract,

including the Westchester

Insurance Contract.
nor

109. Contract
as

Neither the Westchester Insurance Contract

the Mt.

Hawley

Insurance

adopted by the

Westchester Insurance Contract

specify

the

permissibility or

scope of WESTCHESTER's conduct

regarding

to the express terms of the Westchester

Insurance Contract; therefore the contracts individual and construed

together

on

this

issue

are

unclear.
The Mt.

110.

Hawley

Insurance Contract states:

We will determine the value of lost or damaged property or the cost of its repair or replacement, in accordance with the applicable terms of the Valuation Condition in this Coverage Form or any applicable provision which amends or supersedes the Valuation Condition.

See Composite Exhibit "A", 111. Contract
as

Paragraph E.4.g.
nor

Neither the Westchester Insurance Contract

the Mt.

Hawley Insurance

adopted by

the Westchester Insurance Contract defines the standards

governing WESTCHESTER's

exercise of its discretion

or

the standards
a

governing

the

time-frame within which WESTCHESTER must
112.

adjust

or

value

claim.

Although

the Westchester Insurance Contract does not

specify

the time-

frame within which WESTCHESTER must determine the value of RESIDENCES' claim,

RESIDENCES reasonably expected WESTCHESTER to exercise its discretion within
reasonable
amount of time

a

given the

nature

of the

loss

and

the

attendant

circumstances.

KATZMAN GARFINKEL ROSENBAUM LLP

"

Telephone (561) 653-2900
26 of 109

250 Australian Avenue South, Suite 500 *West Palm Beach, FL 33401 * Facsimile (561) 820-2542

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El-Ad Residences

Mt.

Hawley

and Westchester

Complaint Page 27
113. Some three

years

later, through

its

delay and failure

to

adjust

RESIDENCES' claim, WESTCHESTER continues to deprive RESIDENCES of the
benefits of the Westchester Insurance Contract.

Following Hurricane

Wilma

on

October

24, 2005 and continuing to the present, WESTCHESTER has breached the implied
covenant of

good

faith and fair

dealing by delaying and failing

to

reasonably value

the

losses

or

damage RESIDENCES sustained during Hurricane Wilma; delaying and
cost to

failing
was

to

reasonably determine the
or

repair or replace RESIDENCES' property

that

damaged

lost

during Hurricane Wilma; delaying and failing
as

to make reasonable
or

efforts to agree with RESIDENCES the cost of its

to the value of the lost

or

damaged property
adjust

repair

or

replacement; and, failing
and

to value and/or

the loss with

RESIDENCES
114.

promptly

reasonably given

the attendant circumstances.

WESTCHESTER's delay and failure to timely adjust RESIDENCES' claim

has frustrated the purpose of the Westchester Insurance Contract and had

disappointed

RESIDENCES' reasonable commercial
Contract.

expectations

under the Westchester Insurance

115. of

As

a

direct result of WESTCHESTER's breaches of the

implied warranty

good

faith and fair

dealing

in the Westchester Insurance Contract, RESIDENCES has in the millions of dollars.

suffered

general compensatory damages special damages, including,

RESIDENCES has

also suffered
liens

but not limited to, the expenses of for which MT. HAWLEY

defending

resulting from hurricane related roof repairs adjust,
pay
or

unreasonably

failed to

settle.

116.

RESIDENCES

is

entitled

to

recover

its

reasonable
in

attorneys'

fees

pursuant to

Section 627.428, Florida Statutes, which

provides

pertinent part:

KATZMAN GARFINKEL ROSENBAUM LLP

*

Telephone (561) 653-2900
27 of 109

250 Australian Avenue South, Suite 500 *West Palm Beach, FL 33401 Facsimile (561) 820-2542
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El-Ad Residences

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Hawley

and Westchester

Complaint Page 28

Upon rendition of a judgment of decree by any of the courts of this state against an insurer and in favor of any named or omnibus insured or the named beneficiary under a policy or contract executed by the insurer, the trial court or, in the event of an appeal in which the insured or beneficiary prevails, the appellate court shall adjudge or decree against the insurer and in favor of the inured beneficiary a reasonable sum as fees or compensation for the insured's of beneficiary's attorney prosecuting the suit in which the
recovery is had.
117.

Alternatively, Section 626.911, Florida Statutes, provides in pertinent part:
In any action against an unauthorized foreign insurer, alien insurer, or person representing or aiding such an insurer, this state upon a contract of insurance issued or delivered in to a resident thereof or to a corporation authorized to do business there, if the insurer or person representing or aiding such insurer has failed for 30 days after demand prior to the commencement of the action to make payment in accordance with the terms of the contract, the trial judge shall allow to the plaintiff a reasonable attorney's fee or compensation and include such fee or compensation in any judgment that may be rendered in such action.

118.
to Section

RESIDENCES is further entitled to

recover

prejudgment

interest

pursuant

627.70131, Florida Statutes

WHEREFORE, RESIDENCES demands judgment against WESTCHESTER for

compensatory damages and special damages, together with interest,

costs

and

attorneys' fees under 627.428, Florida Statutes, and such other relief
deems

as

this Court

just, equitable

and proper. JURY DEMAND

RESIDENCES demands
triable in the entire
case.

a

trial

by jury

on

all claims, defenses and issues

so

(Signature follows)

KATZMAN GARFINKEL ROSENBAUM LLP

"

Telephone (561) 653-2900
28 of 109

250 Australian Avenue South, Suite 500 *West Palm Beach, FL 33401 * Facsimile (561) 820-2542

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El-Ad Residences

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Hawley

and Westchester

Complaint Page 29
DATED this/

4(day

of

May,

2009.

Respectfully submitted,
KATZMAN GARFINKEL ROSENBAUM LLP Attorneys for Plaintiff 250 Australian Avenue South, Suite 500 West Palm Beach, Florida 33401 (561) 653-2900; Fax (561) 820-2542 Email: drosenbaum(kgrlawfirm.com Email: isiracusakqrlawfirm.com Email: jlawrencekqrlawfirm.com Email: mkeegankgrlawfirm.com Email: rvaluntaskqrlawfirm.com

BY: ANI R:WtM rid Bar No. 306(71 JOS PH M. SIRACUSA Florida Bar No. 159670 JENNILYNN E. LAWRENCE Florida Bar No. 155896 MARK G. KEEGAN Florida Bar No. 503371 RICHARD VALUNTAS Florida Bar No. 151084
723288

KATZMAN GARFINKEL ROSENBAUM LLP

250 Australian Avenue South, Suite 500 Facsimile (561) 820-2542 Telephone (561) 653-2900
"
*

"

West Palm Beach, FL 33401

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COMPOSITE EXHIBIT "A”

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mi
MT. HAWLEY

Mt. Hawley Insurance Peoria, Illinois 61615

Company

Commercial

Property Policy Declarations Page
Mailing Address: Agent/Broker
and

Policy No. MCP0140064
Named Insured and

Mailing Address:

.

El Ad Residences At Miramar Lakes Condominium Association, Inc. 7975 NW 154th Street Suite #200 Miami Lakes, FL 33016

Swett & Crawford-New York Two Wall Street New York, NY 10005

Policy

Period: From 09/07/2005

to 09/07/2006

at 12:01 A.M. Standard Time at your

mailing address shown above.

DESCRIPTION OF PREMISES Covered Locations Listed Below: 2480 West Preserve

Way, Miramar,

FL 33025

CAUSES OF LOSS:

Special including Earthquake excluding Flood $2, 000, 000, part of $2, 000, 000 following and is subject to any sublimits stated elsewhere in the policy:
Limit

LIMITS OF INSURANCE

Total coverage The above limit

(limit) applicable
applies to the

Building

*

Business Personal Property* Business Income (without Extra Expense)
*

Replacement

Cost

Applies
for
-

Per Occurrence Loss Limit At no time will we pay more than $2, 000, 000

a

loss due to

a

single occurrence

or

event.

Deductible(s):
PCA Fees

Refer to CPR 2218, Declarations

Deductible Addendum

Forms Made A Part Of This Fees

Policy At Time Of Issue: See CPR 2150, Applicable Forms & Endorsements
$•
PREMIUM INFURMATION REDACTED

Inspection

Total Premium Amount Payable At Inception $

U
PB 9/28/2005 FRPR 100
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/0 101
Authorized

Signature
Page
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COIAPOWE
EXHIBIT "A"

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Policy Number: MCP0140064

Mt.

Hawley Insurance Company

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

DECLARATIONS

-

DEDUCTIBLE ADDENDUM

The following deductible wording is in addition to all other deductible wording found elsewhere in this policy. All other deductible wording found in and made a part of this policy also applies. Each claim for loss or damage will be adjusted

separately.

PERIL

DEDUCTIBLE(S)
or

$10, 000 Per Occurrence for All Covered Perils, except: 3.00% of total values at risk Per Building (including time element if applicable) at the time of loss for Windstorm $50, 000 Per Occurrence for Earthquake

Hall

ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED.

CPR 2218
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,

Mt.

Hawley

9025 North

Insurance Company Lindbergh Drive, Peoria, IL 61615

SUPPLEMENTAL DECLARATIONS

Policy No: MCP0140064
Named Insured and

Mailing Address

El Ad Residences At Miramar Lakes Condominium Association, Inc. 7975 NW 154th Street Suite #200

Miami Lakes, FL 33016

If coverage for Certified Acts of Terrorism, as defined in the Terrorism Risk Insurance Act of 2002, is provided under the terms of your insurance policy, losses caused by acts of terrorism is partially reimbursed by the United States under a formula whereby the United States pays 90% of covered terrorism losses exceeding a prescribed deductible to the insurance company providing for the coverage.

Portion of
Portion of

premium attributable to coverage for Certified Acts of Terrorism
coverage for Certified Acts of Terrorism

$

19.689

premium attributable to (fire only), as required by law

$ Not Applicable

With respect to any one or more "certified acts of terrorism" under the federal Terrorism Risk Insurance Act of 2002, we will not pay any amounts for which we are not responsible under the terms of that Act (including subsequent action of Congress pursuant to the Act) due to the application of any clause which results in a cap on our liability for payments for terrorism losses.

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Policy Number:

MCP0140064

Mt.

Hawley Insurance Company

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

SCHEDULED LOCATIONS ENDORSEMENT
Location Number
00001
-

Coverage Type
Building

Declared* Values

Valuation**
RCV

Description

and Location of Property Covered
Built: 2002, Masonry Joisted 2480 West Preserve Way Miramar, FL 33025
-

001

$48, 200, 000

00001

-

001

Business Personal

$250, 000

RCV

Property

Built: 2002, Masonry Joisted 2480 West Preserve Way Miramar, FL 33025
-

00001

-

001

(without

Business Income Extra

$1, 000, 000

ALS

Expense)

Built: 2002, Masonry Joisted 2480 West Preserve Way Miramar, FL 33025
-

Total Insured Value

$49, 450, 000

*

**

For Limit of Insurance please see Declarations page of this policy. Indicate: ACV (Actual Cash Value), ALS (Actual Loss Sustained), FRC (Replacement Cost Value), SP (Selling Price) or SV (Stated Value).

(Functional Replacement Cost),

RCV

ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED.

CPR 2194
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'.

PolicylNumber:

MCP0140064

Mt.

Hawley

Insurance

Company

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

APPLICABLE FORMS & ENDORSEMENTS
FORMS AND ENDORSEMENTS LISTED BELOW APPLY TO AND ARE MADE PART OF THIS POLICY AT TIME OF ISSUE.

CPR-2218(11104) CPR-110A(02/03) CPR-2194(10101) CP-0010(04/02) CP-0017(04/02) CP-0032(04/02) CP-1030(04/02) CP-0090(07188) IL-0017(11/98) CPR-2129(03/03) CPR-2155(01/04) CPR-2212(03/02) 1L-0415(04/98) CP-0125(06/95) CPR-2126(10/01) CPR-2187(10/01) CPR-2221(02/03) CPR-2230(05/03) CPR-2257(09/04) IL-0255(07/02) RIL-099(01/01)

Deductible Addendum Declarations Supplemental Scheduled Locations Endorsement Building and Personal Property Coverage Form Condominium Association Coverage Form Business Income (Without Extra Expense) Coverage Form Causes Of Loss Special Form Commercial Property Conditions Common Policy Conditions Minimum Premium Endorsement Percent of Premium Earthquake Extension Additional Named Insureds Protective Safeguards Florida Changes Limitation of Liability Endorsement Form B Exclusion of Certain Computer Related Losses-A Certified Terrorism Loss Terrorism Exclusion Conditional Terrorism Exclusion Florida Changes Cancellation And Nonrenewal Service of Suit Endorsement Declarations
-

-

-

ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED.

CPR 2150
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'

Policy

Number: MCP0140064

Mt.

Hawley

Insurance

Company

BUILDING AND PERSONAL PROPERTY COVERAGE FORM
Various provisions in this and is not covered.

policy restrict

coverage. Read the entire

policy carefully

to determine

rights, duties and

what is

Throughout this policy the words "you" and "your" refer to the Named Insured shown in the Declarations. The words "we, "us" and "our" refer to the Company providing this insurance.
Other words and
A.

"

phrases that appear in quotation marks have special meaning.

Refer to Section H

Definitions.

Coverage
We will pay for direct physical loss of or damage to Covered Property at the premises described in the Declarations caused by or resulting from any Covered
Cause of Loss.

(a)

Additions under construction, alterations and repairs to the building or

structure;

(b) Materials, equipment, supplies
temporary structures,
on or

1.

Covered

Property

Covered Property, as used in this Coverage Part, the type of property described in this section, A.1., and limited in A.2., Property Not Covered, if a Limit of Insurance is shown in the Declarations for that type of property.
means
a.

and within 100 feet of the described premises, used for making additions, alterations or repairs to the building or structure.

b.

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

Your Buslness Personal Property located in the building described in the Declaretions or in the open (or in a vehicle) within 100 feet of the described premises, consisting of the following unless otherwise specified in the Declarations or on the Your Business Personal Property Separation of Coverage form:
or on

(1) Completed additions;
(1)

Furniture and fixtures;

(2) Fixtures, including

outdoor

fixtures;

(2) Machinery and equipment;
(3) Permanently installed:

(a) Machinery and
(b) Equipment;

(3) "Stock";
(4)
All other personal property owned and used in your business;

by you

(4)

Personal property owned by you that is used to maintain or service the building or structure or its premises, including:

(5) Labor,

materials

or on

services furnished

or

arranged by you others;

personal property

of

(a)

Fire

extinguishing equipment;

(6)

Your

(b)

Outdoor furniture;

ments

interest as tenant in improveand betterments. Improvements and betterments are fixtures, alterations,
use

(c) Floor coverings;

and

installations

or

additions:

(d) Appliances used for refrigerating, ventilating, cooking, dishwashing or laundering;

(a)

Made

a part of the building or structure you occupy but do not own; and

(b)

You

acquired

or

(5)

If not covered

by other insurance:

pense but cannot

legally

made at your remove;

ex-

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(7)

Leased personal property for which you have a contractual responsibility to insure, unless otherwise provided for under Personal Property of Others.

k.

Property that is covered under another coverage form of this or any other policy in which it is more specifically described, except for the excess of the amount due (whether you can collect on it or not) from that other insurance;
Retaining walls that are
not

C.

Personal

Property

Of Others that is: I,
or

part

of a

building;

(1) (2)

In your care,

custody

control; and
m.

Underground pipes, flues or drains;
Electronic data, except as provided under Electronic Data. Additional Coverages Electronic data means information, facts or computer programs stored as or on, created or used on, or transmitted to or from computer software (including systems and applications software), on hard or floppy disks, CD-ROMs, tapes, drives, cells, data processing devices or any other repositories of computer software which are used with electronically controlled equipment. The term computer programs, referred to in the foregoing description of electronic data, means a set of related electronic instructions which direct the operations and functions of a computer or device connected to it, which enable the computer or device to receive, process, store, retrieve or send data. This Paragraph n., does not apply to your "stock" of prepackaged software.

Located in or on the building described in the Declarations or in the open (or in a vehicle) within 100 feet of the described

n.

premises.
However,
to
our

payment for loss of

or

damage

personal property of others will only be for the account of the owner of the property.
2.

Property
Covered
a.

Not Covered

Property does

not include:

Accounts, bills, currency, food stamps or other evidences of debt, money, notes or securities,

Lottery tickets held for sale are
b. ed by you, or if owned by you, while inside of buildings;
c.

not

securities;
"stock"

Animals, unless owned by others and board-

only as

Automobiles held for sale;

o.

d.

Bridges, roadways, walks, patios paved surfaces;
Contraband, or property in the legal transportation or trade;
The cost of

or

other

e.

course

of il-

f.

excavations, grading, backfilling

or

filling;
g. Foundations of buildings, structures, machinery or boilers if their foundations are below: p.

The cost to replace or restore the information on valuable papers and records, including those which exist as electronic data. Valuable papers and records include but are not Hmited to proprietary information, books of account, deeds, manuscripts, abstracts, drawings and card index systems. Refer to the Coverage Extension for Valuable Papers And Records (Other Than Electronic Data) for limited coverage for valuable papers and records other than those which exist as electronic data.

Vehicles or self-propelled machines aircraft or watercraft) that:

(including

(1) (2)
h.

The lowest basement floor; The surface of the

or

(1)
no

Are licensed for

use on

public roads; or

ground, if there is

basement;
Land

(2)

Are operated principally away from the described premises.

(including land on located), water, growing
Personal

which the property is crops or lawns;

This

paragraph does not apply to:
Vehicles or self-propelled machines, or autos you manufacture, process or

I.

property

while

airborne

(a)
or

waterborne;

warehouse;

j.

Bulkheads, pilings, piers, wharves or docks;

(b)

Vehicles or self-propelled machines, other than autos, you hold for sale;

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(c) Rowboats

or canoes

out of water at

the described

premises; or

(d) Trailers, but only to the extent provided for in the Coverage Extension for
Non-Owned Detached Trailers.
q.
The

will pay for debris removal expense is limited to 25% of the sum of the deductible plus the amount that we pay for direct physical loss or damage to the Covered Property that has sustained loss or damage.

following property while outside of buildings:
straw
or

(4) We

(1) Grain, hay,

other crops;

(2) Fences, radio or television antennas (including satellite dishes) and their lead-in wiring, masts or towers, signs (other than signs attached to buildings), trees, shrubs or plants (other than "stock" of trees, shrubs or plants), all except as provided in the Coverage Extensions.
3.

will pay up to an additional $10, 000 for debris removal expense, for each location, in any one occurrence of physical loss or damage to Covered Property, if one or both of the following circumstances

appiy:
(a)
The total of the actual debris removal expense plus the amount we pay for direct physical loss or damage exceeds the Limit of Insurance on the Covered Property that has sustained loss or damage. The actual debris removal expense exceeds 25% of the sum of the deductible plus the amount that we pay for direct physical loss or damage to the Covered Property that has sustained loss or damage.

Covered Causes Of Loss

See applicable Causes of Loss Form in the Declarations,
4. Additional
a.

as

shown

(b)

Coverages

Debris Removal

(1) Subject to Paragraphs (3) and (4),

pay your expense to remove Covered Property caused by or resulting from a Covered Cause of Loss that
occurs

will debris of
we

total

during

the

expenses will be paid only if they are reported to us in writing within 180 days of the date of direct physical foss or damage.

policy period. The

damage and debris removal expense may reach but will never exceed the Limit of Insurance on the Covered Property that has sustained loss or damage, plus $10, 000.
(5) Examples
The following examples assume that there is no coinsurance penalty.

Therefore, if (4)(a) and/or (4)(b) apply, our payment for direct physical loss or

(2)

Debris Removal does not
to:

apply

to costs

(a)

Extract

"pollutants" from land
restore or water.

or

Example #1
Limit of Insurance

water;

or

(b) Remove,
land
or

$ 90, 000

replace polluted
Amount of Deductible
Amount of Loss Amount of Loss

$

500

(3) Subject

to the exceptions in Paragraph (4), the following provisions apply:

$ 50, 000

(a)

The most we will pay for the total of direct physical loss or damage plus debris removal expense is the Limit of Insurance applicable to the Covered Property that has sustained loss or

Payable Expense Expense Payable of $50, 000)

$ 49, 500

($50, 000 $500)
-

Debris Removal
Debris Removal

$ 10, 000 $ 10, 000

damage.

($10, 000 is 20%

(b) Subject

to

(a) above,

the amount

we

The debris removal expense is less than 25% of the sum of the loss payable plus

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the deductible. The sum of the loss payable and the debris removal expense ($49, 500 + $10, 000 = $59, 500) is less than the Limit of Insurance. Therefore the full amount of debris removal expense is payable in accordance with the terms of

from loss

or

damage by

a

Covered Cause of

Loss, we will pay for any direct physical loss or damage to that property:

(1)

Paragraph (3). Example #2
Limit of Insurance Amount of Deductible Amount of Loss Amount of Loss

While it is being moved or while temporarily stored at another location; and if the loss or damage occurs within 30 days after the property is first moved.

(2) Only
$ $
90, 000
600
c.

Fire

Department Service Charge

$

80, 000

Payable Expense
Expense Payable

$

79, 500
-

When the fire department is called to save or protect Covered Property from a Covered Cause of Loss, we will pay up to $1, 000 for your liability for fire department service

($80, 000 $500)
Debris Removal

charges:

$

30, 000

(1) Assumed by
to

contract

or

agreement prior

loss;

or

Debris Removal

(2) Required by local
$ 10, 500 10, 000
d. No Deductible

ordinance.
to

Basic Amount

applies

this

Additional

Additional Amount

$

Coverage.
Pollutant Clean

The basic amount payable for debris removal expense under the terms of Paragraph (3) is calculated as follows: $80, 000 ($79, 500 + $500) x .25 = $20, 000; capped at $10, 600. The cap applies because the sum of the loss payable ($79, 500) and the basic amount payable for debris removal expense ($10, 600) cannot exceed the Limit of Insurance ($90, 000).

Up And

Removal

The additional amount payable for debris removal expense is provided in accordance with the terms of Paragraph (4), because the debris removal expense ($30, 000) exceeds 25% of the loss payable plus the deductible ($30, 000 is 37.5% of $80, 000), and because the sum of the loss payable and debris removal expense ($79, 500 + $30, 000 = $109, 500) would exceed the Limit of Insurance ($90, 000). The additional amount of coyered debris removal expense is $10, 000, the maximum payable under Paragraph (4). Thus the total payable for debris removal expense in this example is $20, 500; $9, 500 of the debris removal expense is not covered.
e.

We will pay your expense to extract "pollutants" from land or water at the described premises if the discharge, dispersal, seepage, migration, release or escape of the "pollutants" is caused by or results from a Covered Cause of Loss that occurs during the policy period. The expenses will be paid only if they are reported to us in writing within 180 days .of the date on which the Covered Cause of Loss occurs.

This Additional Coverage does not apply to costs to test for, monitor or assess the existence, concentration or effects of "pollutants." But we will pay for testing which is performed in the course of extracting the "pollutants" from the land or water.
The most
we

will pay under this Additional

Coverage for each described premises is $10, 000 for the sum of all covered expenses arising out of Covered Causes of Loss occurring during each separate 12 month period of this policy.
Increased Cost Of Construction

b.

Preservation Of Property If it is necessary to from the described
Covered Property premises to preserve it
move

(1)

This Additional Coverage applies only to buildings to which the Replacement Cost

Optional Coverage applies. Page 4 of 15

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(2)

In the event of damage by a Covered Cause of Loss to a building that is Coyerect Property, we will pay the increased costs incurred to comply with enforcement of an ordinance or law in the course of repair, rebuilding or replacement of damaged parts of that property, subject to the limitations stated in e.(3) through e.(9) of this Additional Coverage. The ordinance or law referred to in e.(2) of this Additional Coverage is an ordinance or law that regulates the construction or repair of buildings or establishes zoning or land use requirements at the described premises, and is in force at the time of loss, Under this Additional Coverage, we will not pay any costs due to an ordinance or law that:

property, then the most we will pay under this Additional Coverage, for that damaged building, is the lesser of: $10, 000 or 5% times the value of the damaged building as of the time of loss times the applicable coinsurance
percentage.
The amount payable under this Additional Coverage is additional insurance.

(3)

(7) With respect to this Additional Coverage:

(a)

We will not pay for the Increased Cost of Construction:

(4)

(1) Until the property is actually repaired or replaced, at the same or another premises; and

(II) Unless the repairs or replacement are made as soon as reasonably possible
after the loss or damage, not to exceed two years. We may extend this period in writing during the two years.

(a)

You were required to comply with before the loss, even when the building was undamaged; and You failed to

(b)

comply with.
we

(b)
will

(5)

Under this Additional Coverage,
not pay for:

(a)

The enforcement of any ordinance or law which requires demolition, repair, replacement, reconstruction, remodeling or remediation of property due to contamination by "pollutants" or due
to

If the building is repaired or replaced at the same premises, or if you elect to rebuild at another premises, the most we will pay for the Increased Cost of Construction, subject to the provisions of e.(6) of this Additional Coverage, is the increased cost of construction at the same

premises. (c)
If the ordinance or law requires relocation to another premises, the most we will pay for the Increased Cost of Construction, subject to the provisions of e.(6) of this Additional Coverage, is the increased cost of construction at the new premises.

presence, growth, proliferation, spread or any activity of "fun" gus, wet or dry rot or bacteria; or
the costs associated with the enforcement of an ordinance or law which requires any insured or others to test for, monitor, clean up, remove,

(b) Any

(8) This Additional Coverage is
terms of the Ordinance

contain, treat, detoxify
or

or

neutralize,

in any way respond to, or assess " " the effects of "pollutants, "fungus, wet or dry rot or bacteria.

not subject to the Law Exclusion, the extent that such Exclusion would donto flict with the provisions of this Additional
or

Coverage.

(6)

The most

will pay under this Additional Coverage, for each described building insured under this Coverage Form, is $10, 000 or 5% of the Limit of Insurance applicable to that building, whichever is less. If a damaged building is covered under a blanket Limit of Insurance which applies to more than one building or item of
we

(9) The costs addressed in the Loss Payment and Valuation Conditions, and the Replacement Cost Optional Coverage, in this Coverage Form, do not include the increased cost
attributable to enforcement of an ordinance or law. The amount payable under this Additional Coverage, as stated in e.(6) of this Additional Coverage, is not subject to such limitation.

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f.

Electronic Data

(4) The

(1) Under this Additional Coverage, electronlc data has the meaning described under Property Not Covered Electronic Data.

(2) Subject to the provisions

of this Additional

Coverage, we will pay for the cost to replace or restore electronic data which has been destroyed or corrupted by a Coy-

ered Cause of Loss. To the extent that electronic data is not replaced or restored, the loss will be valued at the cost of replacement of the media on which the electronic data was stored, with blank media of substantially identical type.
The Covered Causes of Loss applicable to Your Business Personal Property apply Electronic to this Additional Coverage to the following: Data, subject

will pay under this Additional Electronic Data is $2, 500 for all loss or damage sustained in any one policy year, regardless of the number of occurrences of loss or damage or the number of premises, locations or computer systems involved. If loss payment on the first occurrence does not exhaust this amount, then the balance is available for subsequent loss or damage sustained In but not after that policy year. With respect to an occurrence which begins in one policy year and continues or results in additional loss or damage in a subsequent policy year(s), all loss or damage is deemed to be sustained in the policy year in which the occurrence began.
most
we

Coverage

(3)

5.

Coverage Extensions

(a)

If the Causes Of Loss Special Form applies, coverage under this Additional Coverage Electronic Data is limited to the "specified causes of loss" as defined in that form, and Collapse as set forth in that form.

Except as otherwise provided, the following tensions apply to property located in or on building described in the Declarations or in open (or in a vehicle) within 100 feet of described premises.

Exthe

the the

(b)

If the Causes Of Loss

Broad Form

if a Coinsurance percentage of 80% or more or, a Value Reporting period symbol, is shown in the Declarations, you may extend the insurance provided by this Coverage Part as follows:
a.

applies, coverage under this AddiElectronic Data intional Coverage cludes Collapse as set forth in that
form.
If the Causes Of Loss Form is endorsed to add a Covered Cause of Loss, the additional Covered Cause of Loss does not apply to the coverage provided under this Additional Coverage Electronic Data.

Newly Acquired Or Constructed Property

(1) Buildings
If this policy covers Building, you may extend that insurance to apply to:

(c)

(a)

Your new buildings while being built on the described premises; and
you acquire at other than the described intended for:

(b) Buildings

(d)

The Covered Causes of Loss include a virus, harmful code or similar instruction introduced into or enacted
on
a

locations, premises,

computer system (including
or a

(i)

electronic data) it is connected, designed to damage
or

network to which

Similar use as the building described in the Declarations; or
Use as a warehouse.

destroy any part of the system or disrupt its normal operation. But there is no coverage for loss or damage caused by or resulting from manipulation of

(H)

The most we will pay for loss or damage under this Extension is $250, 000 at each

electronic

computer system (including data) by any employee, Including a temporary or leased employee, or by an entity retained by you or for you to inspect, design, install, modify, maintain, repair or replace
a

building.

(2)

Your Business Personal

Property

(a)

that

system.
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If this policy covers Your Business Personal Property, you may extend that insurance to apply to:

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(I) Business personal property,

in-

b.

Personal Effects And Property Of Others
You may extend the insurance that applies to Your Business Personal Property to apply to:

cluding such property that you newly acquire, at any location you acquire other than at fairs, trade
shows
or

exhibitions;

(1) Personal
cers,

effects owned
or

by

you, your offi-

(ii)

Business personal property, including such property that you newly acquire, located at your newly constructed or acquired buildings at the location described in the Declarations; or

your partners managers or your employees. This extension does not apply to loss or damage by
theft.

members, your

(2) Personal property custody or control.

of others in your care,

(Ill) Business personal property that you newly acquire, located at the described premises.
The most
we

will pay for loss

or

damage under this Extension is $100, 000 at each building.

The most we will pay for loss or damage under this Extension is $2, 500 at each described premises. Our payment for loss of or damage to personal property of others will only be for the account of the owner of the

property.
c.

(b) This Extension

does not

apply to:

Valuable Papers And Records Electronic Data)

(Other Than

(I) Personal property of others that is temporarily in your possession in the course of installing or performing work on such property; or (11) Personal property of others that is temporarily in your possession in the course of your manufacturing or wholesaling activities, (3)
Period Of Coverage With respect to insurance on or at each newly acquired or constructed property, coverage will end when any of the

(1)

You may extend the insurance that applies to Your Business Personal Property to apply to the cost to replace or restore the lost information on valuable papers and records for which duplicates do not exist. But this Extension does not apply to valuable papers and records which exist as electronic data. Electronic data has the meaning described under Property Not Covered Electronic Data.

(2)

applies,

following first occurs:

If the Causes Of Loss Special Form coverage under this Extension is limited to the "specified causes of loss" as defined in that form, and Collapse as set forth in that form.

(a)

This

policy expires;

(3)

(b)

30 days expire after you acquire the property or begin construction of that part of the building that would qualify
as

Broad Form apIf the Causes Of Loss under this Extension inplies, coverage cludes Collapse as set forth in that form.

covered property;

or

(c)

You

report values to us.

(4) Under this Extension, the most we will pay to replace or restore the lost information is $2, 500 at each described premises, unless a higher limit is shown in the

We will charge you additional

premium

for

values reported from the date you acquire the property or begin construction of that part of the building that would qualify as

covered property.

Declarations. Such amount Is addi- tional insurance. We will also pay for the cost of blank material for reproducing the records (whether or not duplicates exist), and (when there is a duplicate) for the cost of labor to transcribe or copy the records. The costs of blank material and labor are subject to the applicable Limit of

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Insurance on Your Business Personal Property and therefore coverage of such costs is not additional insurance.
d.

Property Off-Premises

The most we will pay for loss or damage under this Extension Is $1, 000, but not more than $250 for any one tree, shrub or plant. These limits apply to any one occurrence, regardless of the types or number of items lost or damaged in that occurrence.

(1) You may extend the insurance provided by this Coverage Form to apply to your Covered Property while it is away from the described premises, If it is:

f.

Non-Owned Detached Trailers

(a) Temporarily
own, lease

at a location you do not

or

operate;

(1) You may extend the insurance that applies to Your Business Personal Property to apply to loss or damage to trailers that you do not own, provided that:

(b)

In storage at a location you lease, provided the lease was executed after the beginning of the current policy term; or
At any fair, trade show
or

(a)
(b)

The trailer is used in your business;
The trailer is in your care, custody or control at the premises described in the Declarations; and You have a contractual responsibility to pay for loss or damage to the trailer.
or

(c)

exhibition.

(2) This Extension does not apply to property: (a) (b)
In
or on a

(c)

vehicle;

or

custody or control of your salespersons, unless the property is in such care, custody or control at a
In the care,

(2)

We will not pay for any loss that occurs:

damage

fair, trade show

or

exhibition,

(a)

(3)
e.

The most we will pay for loss or under this Extension is $10, 000.

damage

While the trailer is attached to any motor vehicle or motorized conveyance, whether or not the motor vehide or motorized conveyance is in

motion;

Outdoor Property
You may extend the insurance provided by this Coverage Form to apply to your outdoor fences, radio and television antennas ing satellite dishes), signs (other than signs attached to buildings), trees, shrubs and plants (other than "stock" of trees, shrubs or plants), including debris removal expense, caused by or resulting from any of the following causes of loss if they are Covered Causes of Loss:

(b) During hitching
tions,
or

(includ-cle
(3)

or unhitching operawhen a trailer becomes accidentally unhitched from a motor vehior motorized conveyance.

The most we will pay for loss or damage under this Extension is $5, 000, unless a h igher limit is shown in the Declarations. insurance is excess over the amount due (whether you can collect on it or not) from any other insurance covering such

( 4) This

(1) Fire;
(2) Lightning;
(3) Explosion;

property.
Each of these Extensions is additional insurance unless otherwise indicated. The Additional Condition, Coinsurance, does not apply to these Extensions.
or

(4)
(5)

Riot

or

Civil Commotion;

B.

Exclusions And Limitations
See applicable Causes of Loss Form Declarations.
as

Aircraft.

shown in the

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C.

Limits Of Insurance The most
we

$

60, 100
250

occurrence

will pay for loss or damage in any one is the applicable Limit of Insurance shown

$

59, 850 Loss Payable

Bldg.

1

in the Declarations.

The most

we will pay for loss or damage to outdoor attached to buildings is $1, 000 per sign in any signs
one occurrence.

The Deductible applies once per occurrence and therefore is not subtracted in determining the amount of loss payable for Bldg. 2. Loss payable for Bldg. 2 is the Limit of Insurance of $80, 000.

The limits applicable to the Fire Department Service Charge and Pollutant Clean Up and Removal Additional Coverages are in addition to the Limits of Insurance.

Total amount of loss $139,850.

payable: $59, 850

+

80, 000

=

Example

No. 2:
assumes

Payments under the Preservation of Property Additional Coverage will not increase the applicable Limit of Insurance.
D. Deductible of loss or damage (hereinafter loss), we will first reduce the amount of loss if required by the Coinsurance Condition or the Agreed Value Optional Coverage. If the adjusted amount of loss is less than or equal to the Deductible, we will not pay for that loss. If the adjusted amount of In any
one occurrence
as

(This example, too, penalty.)

there is

no

coinsurance

The Deductible and Limits of Insurance those in Example No. 1.
Loss to

are

the

same as

Bldg.

1:

$ 70, 000

(exceeds

Limit of Insurance

plus Deductible)

referred to

$ 90, 000 Loss to Bldg. 2: (exceeds Limit of Insurance plus Deductible)
Loss

loss exceeds the Deductible, we will then subtract the Deductible from the adjusted amount of loss, and will pay the resulting amount or the Limit of Insurance, whichever is less.

Payable Bldg. (Limit of Insurance)

1:

$ 60, 000 $ 80, 000

Loss

Payable Bldg. (Limit of Insurance)

2:

When the occurrence involves loss to more than one item of Covered Property and separate Limits of Insurance apply, the losses will not be combined in determining application of the Deductible. But the Deductible will be applied only once per occurrence.

Total amount of loss
E.
Loss Conditions

payable:

$140, 000

The
mon

following conditions apply in addition to the ComPolicy Conditions and the Commercial Property

Conditions.

Example No. 1:

(This example assumes there is
Deductible:
Limit of Insurance Limit of Insurance
Loss to Loss to

no

coinsurance

penalty.)
$
250

1•

Abandonment

There
US.

can

be

no

abandonment of any property to

Bldg. 1: Bldg.
2:

$ 60, 000 $ 80, 000 $ 60, 100 $ 90, 000

2.

Appraisal
and you disagree on the value of the propthe amount of loss, either may make writerty ten demand for an appraisal of the loss. In this event, each party will select a competent and impartial appraiser. The two appraisers will select an umpire. If they cannot agree, either may request that selection be made by a judge of a court having jurisdiction. The appraisers will state separately the value of the property and amount of loss. If they fail to agree, they will submit their differences to the umpire. A decision agreed to by any two will be binding. Each party will: If
we or

Bldg.

1:

Bldg. 2:

The amount of loss to Bldg. 1 ($60, 100) Is less than the sum ($60, 250) of the Limit of Insurance applicable to Bldg. 1 plus the Deductible.

loss in

The Deductible will be subtracted from the amount of calculating the loss payable for Bldg. 1:

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a.

Pay its chosen appraiser; and
Bear the other expenses of the

(8) Cooperate appraisal and
b.
our

with us in the settlement of the claim.

investigation

or

b.

umpire equally.
If there is
an

right
3.

to

deny

the claim.

appraisal,

we

will still retain

Duties In The Event Of Loss Or
a.

Damage
are

You must see that the the event of loss or

following damage
a

done in to Covered

We may examine any insured under oath, while not in the presence of any other insured and at such times as may be reasonably required, about any matter relating to this insurance or the claim, including an insured's books and records. In the event of an examination, an insured's answers must be signed.

4.

Loss
a.

Payment
or

Property:

(1) Notify
(2)
Give
age.

the broken.
us

police if

law may have been

In the event of loss

damage covered by this
or

Coverage Form, at our option, we will either:

prompt notice of the loss or damInclude a description of the property

(1) Pay the value of lost
erty;

damaged

prop-

involved.

(2) Pay the
lost
or

(3)

As
of

soon as possible, give us a description how, when and where the loss or dam-

repairing or replacing the damaged property, subject to b.
cost of
or

below;

age occurred.

(3)
steps
to

Take all

any

part of the property

at an

(4)

Take all reasonable

protect

the

agreed or appraised value; or
(4) Repair, rebuild or replace the property with other property of like kind and quaiity, subject to b. below.
We will determine the value of lost or damaged property, or the cost of its repair or replacement, in accordance with the applicable terms of the Valuation Condition in this Coverage Form or any applicable provision which amends or supersedes the Valuation Condition.
b. The cost to

Covered Property from further damage, and keep a record of your expenses necessary to protect the Covered Property, for consideration in the settlement of the claim. This will not increase the Limit of Insurance. However, we will not pay for
any subsequent loss or damage resulting from a cause of loss that is not a Covered Cause of Loss. Also, if feasible, set the damaged property aside and in the best possible order for examination,

(5)

At our request, give us complete inventories of the damaged and undamaged property. Include quantities, costs, values

and amount of loss claimed,
as

(6)

As often

may be

permit

us

to

the loss or books and records.
Also

reasonably required, inspect the property proving damage and examine your

repair, rebuild or replace does not include the increased cost attributable to enforcement of any ordinance or law regulating the construction, use or repair of any
property.
We will give notice of our intentions within 30 days after we receive the sworn proof of loss.
We will not pay you more than your financial interest in the Covered Property. We may
or

c.

permit us to take samples of damaged and undamaged property for inspection, testing and analysis, and permit us to make copies from your books and
records.

d.

e.

(7) Send us a signed, sworn proof of loss containing the information we request to investigate the claim. You must do this within 60 days after our request. We will supply you with the necessary forms.
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adjust losses with the owners of lost damaged property if other than you. If we pay the owners, such payments will satisfy your claims against us for the owners' property. We will not pay the owners more
than their financial interest in the Covered

Property.
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We may elect to defend you against suits arising from claims of owners of property. We will do this at our expense. b.
g.

(2) Buildings
are

under construction or renovation not considered vacant. Provisions

Vacancy

We will pay for covered loss or damage within 30 days after we receive the sworn proof of loss, if you have complied with all of the terms of this Coverage Part and:

If the building where loss or damage occurs has been vacant for more than 60 consecutive days before that loss or damage occurs:

(1) (2)
5.

We have reached agreement with you the amount of loss; or An

on

(1) We

will not pay for any loss caused by any of the following are Covered Causes of Loss:

or

even

damage if they

appraisal award has been made.
Property
or we recover

Recovered

(a) Vandalism;

any property after loss settlement, that party must give the other prompt notice. At your option, the property will be reIf either you
turned to you. You must then return to us the amount we paid to you for the property. We will pay recovery expenses and the expenses to repair the recovered property, subject to the Limit of Insurance.

(b) Sprinkler leakage, unless you have protected the system against freezing; (c) Building glass breakage;
(d) Water damage;

(e) Theft; or
(f) Attempted theft.

6.

Vacancy
a.

Description Of Terms

(2)

(1)

As used in this Vacancy Condition, the term building and the term vacant have the meanings set forth in (1)(a) and (1)(b) below:

With respect to Covered Causes of Loss other than those listed in b.(1)(a) through b.(1)(f) above, we will reduce the amount we would otherwise pay for the loss or damage by 15%.

7.

Valuation

(a)

When this policy is issued to a tenant, and with respect to that tenant's interest in Covered Property, building means the unit or suite rented or leased to the tenant. Such building is vacant when it does not contain enough business personal property to conduct customary operations.
When this
owner or

We will determine the value of Covered in the event of loss or damage as follows:
a.

Property

At actual cash value as of the time of loss or damage, except as provided in b., c., d. and
e.

below.

b.

(b)

policy is issued to the general lessee of a building, building means the entire building. Such building is vacant unless at least 31% of its total square footage is: (I)
Rented to a lessee or sub-lessee and used by the lessee or sublessee to conduct its customary

If the Limit of Insurance for Building satisfies the Additional Condition, Coinsurance, and the cost to repair or replace the damaged building property is $2, 500 or less, we will pay the cost of building repairs or replacement. The cost of building repairs or replacement does not include the increased cost attributable to enforcement of any ordinance or law regulating the construction, use or repair of any property. However, the following property will be valued at the actual cash value even when attached to the building:

operations; and/or

(ii)

Used by the building owner to conduct customary operations.

(1) Awnings or floor coverings;

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(2) Appliances for refrigerating, ventilating, cooking, dishwashing or laundering; or

(1) Multiply

at the time of loss

the value of Covered Property by the Coinsurance

(3)
c.

Outdoor equipment

or

furniture.

percentage;

"Stock" you have sold but not delivered at the selling price less discounts and expenses you otherwise would have had.
Glass at the cost of replacement with safety glazing material if required by law.

(2) Divide the Limit of Insurance of the property by the figure determined in Step (1);

d.

(3) Multiply the total amount of loss, before the application of any deductible, by the figure determined in Step (2); and (4)
Subtract the deductible from the figure determined in Step (3).

e.

Tenant's Improvements and Betterments at:

(1) (2)

Actual cash value of the lost or damaged property if you make repairs promptly. A proportion of your original cost if you do not make repairs promptly. We will determine the proportionate value as follows:

We will pay the amount determined in Step (4) or the limit of insurance, whichever is less. For the remainder, you will either have to rely on other insurance or absorb the loss yourself.

Example

No. 1

(Underinsurance):
$ 250, 000
80%

(a) Multiply the original cost by the number of days from the loss or damage to the expiration of the lease; and

When: The value of the property is
The Coinsurance percentage for it is

(b) Divide the amount determined in (a) above by the number of days from the Installation of improvements to the expiration of the lease.
if your lease contains a renewal option, the expiration of the renewal option period will replace the expiration of the lease in this procedure.

The Limit of Insurance for it is The Deductible is The amount of loss is

$ 100, 000 $
250

$ 40, 000

Step (1):

(3) Nothing if others pay for repairs replacement.
F.

or

$250, 000 x 80% $200, 000 (the minimum amount of insurance to
=

meet your Coinsurance

requirements)
=

Additional Conditions
The
mon

Step (2):
Step (3):

$100, 000: $200, 000

.50

Conditions.
1.

following conditions apply in addition to the CornPolicy Conditions and the Commercial Property

$40, 000 x
$20, 000
more

.50

=

$20, 000
=

Step (4):
We will pay no is not covered.

$250

$19, 750

Coinsurance If
a

than

$19, 750. The remaining $20, 250

Coinsurance

'

percentage is shown in the Dec-

larations, the following condition applies.
a.

Example

No. 2

(Adequate Insurance):
$250, 000
80%

We will not pay the full amount of any loss if the value of Covered Property at the time of loss times the Coinsurance percentage shown for it in the Declarations is greater than the Limit of Insurance for the property.

When: The value of the property is
The Coinsurance percentage for it is The Limit of Insurance for it is

Instead,
pay

we

using

will determine the most the following steps:

we

will

$200, 000

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The Deductible is
The amount of loss is

$

260

2.

Mortgageholders
a.

$ 40, 000

The term

mortgageholder includes trustee.

The minimum amount of insurance to meet your Coinsurance requirement is $200, 000 ($250, 000 x 80%). Therefore, the Limit of Insurance in this Example is adequate and no penalty applies. We will pay no more than $39, 750 ($40, 000 amount of loss minus the deductible of $250).
b.

b.

We will pay for covered loss of or damage to buildings or structures to each mortgageholder shown in the Declarations in their order of precedence, as interests may appear.
The mortgageholder has the right to receive loss payment even if the mortgageholder has started foreclosure or similar action on the building or structure. If we deny your claim because of your acts or because you have failed to comply with the terms of this Coverage Part, the mortgageholder will still have the right to receive loss payment if the mortgageholder:

c.

Limit of Insurance applies to two or separate items, this condition will apply to the total of all property to which the limit
If
one

more

d.

applies,

Example

No. 3:

When: The value of

property is: $ 75, 000

Bldg.
Bldg.

at Location No. 1

(1) Pays

at Location No. 2

$100, 000
$ 75, 000

any premium due under this CoverPart at our request if you have failed age to do so;
a

Personal Property at
Location No. 2

(2) Submits
$250, 000
us

within 60

of your failure to do so; and
us

signed, sworn proof of loss days after receiving notice from

The Coinsurance for it is

percentage

(3)
90%

of any change in ownership, occupancy or substantial change in risk known to the mortgageholder.
Has notified

The Limit of Insurance for Buildings and Personal Property at Location Nos. 1 and 2 is The Deductible is The amount of loss is:

$180, 000
$
1, 000
e.

All of the terms of this Coverage Part will then apply directly to the mortgageholder.

If

we

pay the

damage and deny

Bldg.

at Location No. 2

$ 30, 000

your acts or because you have failed to ply with the terms of this Coverage Part:

mortgageholder for any loss or payment to you because of
corn-

Personal Property at
Location No. 2

(1)
$ 20, 000
$ 60, 000

The

under the will be transferred to us to the mortgage extent of the amount we pay; and

mortgageholder's rights

Step (1):

$250, 000 x 90%

=

$225, 000

(2)

amount of insurance to meet your Coinsurance requirements and to avoid the penalty shown below)

(the minimum

The mortgageholder's right to recover the full amount of the mortgageholder's claim will not be impaired.

At our

Step (2):

$180, 000

4-

$225, 000
=

=

.80

Step (3):
Step (4):
We will pay no is not covered,

$50, 000 x .80 $40, 000
more

$40, 000
=

$1, 000

$39, 000

option, we may pay to the mortgageholder the whole principal on the mortgage plus any accrued interest. In this event, your mortgage and note will be transferred to us and you will pay your remaining mortgage debt to us.
If cancel this policy, we will give written notice to the mortgageholder at least:
we

than $39, 000. The

remaining $11, 000

f.

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(1)

10 days before the effective date of cancellation if we cancel for your nonpayment
of

the

policy anniversary date, or any other policy change amending the Limit of In-

premium;

or

surance, times

(2) 30 days before
g.

the effective date of cancellation if we cancel for any other reason.

(2)

If we elect not to renew this policy, we will give written notice to the mortgageholder at least 10 days before the expiration date of this

The percentage of annual increase shown in the Declarations, expressed as a decimal (example: 8% is .08), times The number of days since the beginning of the current policy year or the effective date of the most recent policy change amending the Limit of Insurance, divided by 365.

(3)

policy,
G.

Optional Coverages
If shown as applicable in the Declarations, lowing Optional Coverages apply separately item. the folto each

Example:
If:

The applicable Limit of Insurance is
The annual percentage increase is

1.

Agreed Value
a.

$100, 000
8%

The Additional Condition, Coinsurance, does not apply to Covered Property to which this Optional Coverage applies. We will pay no more for loss of or damage to that property than the proportion that the Limit of Insurance under this Coverage Part for the property bears to the Agreed Value shown for it in the Declarations.
If the expiration date for this Optional Coverage shown in the Declarations is not extended, the Additional Condition, Coinsurance, is reinstated and this Optional Coverage

The number of days since the beginning of the policy year (or last policy change) is
The amount of increase is $100, 000 x .08 x 146 ÷. 365 = 3.

146

b.

$

3, 200

Replacement Cost
a.

expires.
c.

The terms of this Optional Coverage only to loss or damage that occurs:

apply
Op-

Replacement Cost (without deduction for depreciation) replaces Actual Cash Value in the Loss Condition, Valuation, of this Coverage
Form.
This

(1) (2)

On or after the effective date of this tionai Coverage; and

b.

Optional Coverage does

not

apply to:

Before the Agreed Value expiration date shown in the Declarations or the policy expiration date, whichever occurs first.

(1)
(2)

Personal property of others;
Contents of
a

residence;

2.

Inflation Guard
e.

(3)

Works of art,

The Limit of Insurance for property to which this Optional Coverage applied will automatically increase by the annual percentage shown in the Declarations. The amount of increase will be:

antiques or rare articles, including etchings, pictures, statuary, marbles, bronzes, porcelains and bric-a-brac;
or
"

(4) "Stock, unless option is shown in Optional Coverage,

the Including "Stock" the Declarations.

b.

(1)

The Limit of Insurance that applied on the most recent of the policy inception date,

Under the terms of this Replacement Cost tenants' improvements and betterments are not considered to be the personal property of others.

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c.

You may make a claim for loss or damage covered by this insurance on an actual cash value basis instead of on a replacement cost basis. In the event you elect to have loss or damage settled on an actual cash value basis, you may still make a claim for the additional coverage this Optional Coverage provides if you notify us of your intent to do so within 180 days after the loss or damage.
We will not pay on a replacement cost basis for any loss or damage:
4.

building had been rebuilt premises.
f.

cost which would have been incurred if the at the original

The cost of repair or replacement does not include the increased cost attributable to enforcement of any ordinance or law regulating the construction, use or repair of any property.

d.

Extension Of Replacement Cost To Personal Property Of Others
a.

(1)

damaged property is actually repaired or replaced; and
or

Until the lost

(2) Unless the repairs

or

made as soon as reasonably after the loss or damage.

replacement are possible

With respect to tenants' improvements and betterments, the following also apply:

If the Replacement Cost Optional Coverage is shown as applicable in the Declarations, then this Extension may also be shown as applicable. If the Declarations show this Extension as applicable, then Paragraph 3.b.(1) of the Replacement Cost Optional Coverage is deleted and all other provisions of the Replacement Cost Optional Coverage apply to replacement cost on personal property of others.
With respect to replacement cost on the personal property of others, the following lirnRation applies:

(3)

If the conditions in d.(1) and d.(2) above not met, the value of tenants' improvements and betterments will be determined as a proportion of your original cost, as set forth in the Valuation Condition of this Coverage Form; and
are

b.

(4)

We will not pay for loss or damage to tenants' improvements and betterments if others pay for repairs or replacement.
more for loss or damage on a cost basis than the least of (1), subject to f. below:

item(s) of personal property of others is subject to a written contract which governs your liability for loss or damage to that item(s), then valuation of that item(s) will be based on
an

If

e.

We will not pay

replacement

(2) (1)
(2)

or

(3),

the amount for which you are liable under such contract, but not to exceed the lesser of the replacement cost of the property or the applicable Limit of Insurance.
H.

Definitions 1.

The Limit of Insurance
lost or

applicable
or

to the

damaged property;

The cost to replace the lost property with other property:

damaged quality;

"Fungus" means any type or form of fungus, including mold or mildew, and any mycotoxins, spores, scents or by-products produced or released by fungi.
"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. "Stock" merchandise held in storage or for in-process or finished used in their packing or including supplies
means

(a)

Of comparable material and and
or

2.

(b) Used for the same purpose;

(3)

The amount actually spent that is necessary to repair or replace the lost or

damaged property.
is rebuilt at a new premises, the cost described in e.(2) above is limited to the
a

3.

sale,

raw

materials and

If

building

goods, shipping.

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Policy Number: MCP0140064

Mt.

Hawley

Insurance

Company

CONDOMINIUM ASSOCIATION COVERAGE FORM
Various provisions in this and is not covered.

policy

restrict coverage. Read the entire

policy carefully

to determine

rights, duties and what is
"

Throughout

this policy the words "you" and "your" refer to the Named insured shown in the Declarations. The words "we, "us" and "our refer to the Company providing this insurance.

Other words and
A.

phrases that appear in quotation marks have special meaning. Refer to Section

H.

Definitions.

Coverage
We will pay for direct physical loss of or damage to Covered Property at the premises described in the Declarations caused by or resulting from any Covered Cause of Loss. 1,
Covered

(a) Additions under construction, alterations and repairs to the building or
structure;

(b) Materials, equipment, supplies,
temporary structures,
on or

and

within 100

Property
Part,
SecCov-

Covered Property, as used in this Coverage the type of property described in this tion, A.1., and limited in A.2., Property Not ered, if a Limit of Insurance is shown in the larations for that type of property.
means
a.

feet of the described premises, used for making additions, alterations or repairs to the building or structure; and

(6) Any

Dec-

of the following types of property contained within a unit, regardless of ownership, if your Condominium Association Agreement requires you to insure it:

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

(a) Fixtures, improvements and alterations that are a part of the building or
structure; and

(1) Completed additions;
(2) Fixtures, outside of indMdual units, eluding outdoor fixtures;
in-

(3) Permanently installed: (a) Machinery and
But

(b) Appliances, such as those used for refrigerating, ventilating, cooking, dishwashing, laundering, security or housekeeping.
does not include personal propowned by, used by or in the care, cuserty tody or control of a unit-owner except for personal property listed in Paragraph A.1.a.(6) above.

Building

(b) Equipment;
(4) Personal property owned by you that is used to maintain or service the building or structure or its premises, including:
(a)
Fire

b.

extinguishing equipment;

(b)
(c)

Outdoor furniture;
Floor

coverings; and

Your Business Personal Property located in or on the building described in the Declarations or in the open (or in a vehicle) within 100 feet of the described premises, consisting of the following:

(d) Appliances used for refrigerating, ventilating, cooking, dishwashing or laundering that are not contained
within individual units;

(1)

Personal property owned by you owned indivisibly by all unit-owners;

or

(2)

(5)

If not covered

by

other insurance:

Your interest in the labor, materials or services furnished or arranged by you on personal property of others;

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(3)

Leased personal property for which you have a contractual responsibility to insure, unless otherwise provided for under Personal Property of Others.

j.
k.

Bulkheads, pilings, piers, wharves or docks;

But Your Business Personal Property does not include personal property owned only by a

Property that Is covered under this or any other policy in which it is more specifically described, except for the excess of the amount due (whether you can collect on it or not) from
that other insurance;

unitowner.
I.
c.

Personal Property Of Others that is:
m.

Retaining walls that are not part of a building; Underground pipes, flues or drains;
Electronic data, except as provided under AdElectronic Data. Elecditional Coverages tronic data means information, facts or corn—

(1) In your care, custody or control; and
n.

(2)

Located in or on the building described in the Declarations or in the open (or in a vehicle) within 100 feet of the described

puter programs stored
used on, software
or

as or

premises.
payment for loss of or damage to personal property of others will only be for the account of the owner of the property.
However,
our

transmitted to

or

2.

Property Not Covered
Covered
a.

Property does

not include:

Accounts, bills, currency, food stamps or other evidences of debt, money, notes or securities, Lottery tickets held for sale are not securities;
Animals, unless owned by others and boarded

of electronic data, means a set of related electronic instructions which direct the operations and functions of a computer or device connected to it, which enable the computer or device to receive, process, store, retrieve or send data.
o.

(including systems software), on hard or floppy disks, CD-ROMs, tapes, drives, cells, data processing devices or any other repositories of computer software which are used with electronically controlled equipment. The term computer programs, referred to in the foregoing description

on, created or from computer and applications

b.

by you;
c.

Automobiles held for sale;

d.

Bridges, roadways, walks, patios paved surfaces;
Contraband, or property in the legal transportation or trade;
The cost of excavations,
or

or

other

e.

course

of il-

f.

grading, back filling
p.
maare

The cost to replace or restore the information on valuable papers and records, including those which exist as electronic data. Valuable papers and records include but are not limited to proprietary information, books of account, deeds, manuscripts, abstracts, drawings and card index systems. Refer to the Coverage Extension for Valuable Papers And Records (Other Than Electronic Data) for limited coverage for valuable papers and records other than those which exist as electronic data.

filling;
or

g.

Foundations

chinery
below:

of buildings, structures, boilers if their foundations

Vehicles or self-propelled machines aircraft or watercraft) that:

(including
or

(1)
or

Are licensed for
Are

use on

public roads;

(1)

The lowest basement floor;
of the

(2)
no

described

(2) The surface
basement.
h.

ground

if there is

operated principally premises.
does not
or

away from the

This

paragraph
or

apply to:
machines manufacture or

Land (including land on which the property Is located), water, growing crops or lawns;

(a) Vehicles

self-propelled
you

autos

warehouse;
I.

Personal

property

while

airborne

or

waterborne;

(b)

Vehicles or self-propelled machines, other than autos, you hold for sale;

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(c) Rowboats (d) Trailers,

or canoes

out of water at
or

(b) Subject

the described

premises;

but only to the extent provided for in the Coverage Extension for Non-Owned Detached Trailers.

to (a) above, the amount we will pay for debris removal expense is limited to 25% of the sum of the deductible plus the amount that we pay for direct physical loss or damage to the Covered Property that has sustained loss or damage.

q.

The

following property while outside of buildings:
or
or

(4)

(cation, 1) Grain, hay, straw other crops;
(2) Fences, radio or television antennas (including satellite dishes) and their lead-in wiring, masts or towers, signs (other than signs attached to buildings), trees, shrubs, or plants (other than "stock" of trees, shrubs or plants), all except as provided in the Coverage Extensions.
3.

We will pay up to an additional $10, 000 for debris removal expense, for each loin any one occurrence of physical loss or damage to Covered Property, if one or both of the following circumstances

apply:

(a) The

total of the actual debris removal expense plus the amount we pay for direct physical loss or damage exceeds the Limit of Insurance on the Covered Property that has sustained
loss
or

Covered Causes Of Loss Causes of Loss Form the Declarations.
See

damage.

applicable

as

shown in

(b)

4.

Additional Coverages
a.

The actual debris removal expense exceeds 25% of the sum of the deductible plus the amount that we pay for direct physical loss or damage to the Covered Property that has sustained loss or damage.
our

Debris Removal

(1) Subject

to

Paragraphs (3) and (4),

pay your expense to remove Covered Property caused by or resulting from a Covered Cause of Loss that occurs during the policy period. The expenses will be paid only if they are reported to us in writing within 180 days of the date of direct physical loss or damage.

will debris of
we

Therefore, if (4)(a) and/or (4)(b) apply,
total

payment for direct physical loss or damage and debris removal expense may

reach but will

never exceed the Limit of insurance on the Covered Property that has sustained loss or damage, plus $10, 000.

(5) Examples
The
there is

(2) Debris
to:

Removal does not

apply

to costs

following examples assume that no coinsurance penalty.

(a) Extract "pollutants"
ter;
or

from land

or wa-

Example #1
Limit of Insurance

$ $

90, 000
500

(b) Remove,
land
or

restore or water.

replace polluted

Amount of Deductible

(3) Subject to the exceptions in Paragraph (4), the following provisions apply:

Amount of Loss Amount of Loss

$ Payable
$
$

50, 000 49, 500
-

(a)

The most we will pay for the total of direct physical loss or damage plus debris removal expense is the Limit of Insurance applicable to the Covered Property that has sustained loss or

($50, 000 $500)
10, 000

Debris Removal Debris Removal

Expense
Expense
of $50, 000)

damage.

Payable

$

10, 000

($10, 000 is 20%

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The debris removal expense is less than 25% of the sum of the loss payable plus the deductible. The sum of the loss payable and the debris removal expense ($49, 500 + $10, 000 = $59,500) is less than the Limit of Insurance. Therefore, the full amount of debris removal expense is payable in accordance with the terms of

b.

Preservation Of

Property

If it is necessary for you to move Covered Property from the described premises to preserve it from loss or damage by a Covered Cause of Loss, we will pay for any direct physical loss or damage to that property:

Paragraph (3).
Example #2
Limit of Insurance
Amount of Deductible

(1) While it is being moved or while temporarily stored at another location; and
$
$ 90, 000
500
c.

(2) Only if the loss or damage occurs within 30 days after the property Is first moved.
Fire

Department Service Charge

Amount of Loss
Amount of Loss

$ Payable $

80, 000
79, 500

($80, 000
Debris Removal
Debris Removal

$500)

When the fire department is called to save or protect Covered Property from a Covered Cause of Loss, we will pay up to $1, 000 for your liability for fire department service

Expense
Expense
Basic Amount Additional Amount

$

30, 000

charges:

(1) Assumed by
to

contract or

agreement prior

Payable
$ $
10, 500 10, 000

loss;

or

(2) Required by local
No

ordinance.
to

Deductible

applies
Up And

this

Additional

The basic amount payable for debris removal expense under the terms of Paragraph (3) is calculated as follows: $80, 000 ($79, 500 + $500) x .25 = $20, 000; capped at $10, 500. The cap applies because the sum of the loss payable ($79,500) and the basic amount payable for debris removal expense ($10, 500) cannot exceed the Limit of Insurance ($90, 000).
The additional amount

Coverage.
d.
Pollutant Clean Removal

removal expense is

dance with the because the debris removal expense ($30, 000) exceeds 25% of the loss payable plus the deductible ($30, 000 is 37.5% of $80, 000), and because the sum of the loss payable and debris removal expense ($79, 500 + $30, 000 = $109, 500) would exceed the Limit of Insurance ($90, 000). The additional amount of coyered debris removal expense is $10, 000, the maximum payable under Paragraph (4). Thus the total payable for debris removal expense in this example is $20, 500; $9, 500 of the debris removal expense is not covered,

payable for debris provided in accorterms of Paragraph (4),

We will pay your expense to extract "pollutants" from land or water at the described premises if the discharge, dispersal, seepage, migration, release or escape of the "potlutants" is caused by or results from a Covered Cause of Loss that occurs during the policy period. The expenses will be paid only if they are reported to us in writing within 180 days of the date on which the Covered Cause of Loss occurs.

This Additional Coverage does not apply to costs to test for, monitor or assess the axistence, concentration or effects of "pollutants." But we will pay for testing which is performed in the course of extracting the "pollutants" from the land or water.
The most we will pay under this Additional Coverage for each described premises is $10, 000 for the sum of all covered expenses arising out of Covered Causes of Loss occurring during each separate 12 month period of this policy.

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e.

Increased Cost Of Construction

(6)

(1) This Additional Coverage applies only to buildings to which the Replacement Cost Optional Coverage applies, (2) In the event of damage by a Covered Cause of Loss to a building that is Covered Property, we will pay the increased costs incurred to comply with enforcement of
an ordinance or law in the course of repair, rebuilding or replacement of damaged parts of that property, subject to the limitations stated in e.(3) through e.(9) of this Additional Coverage.

The most we will pay under this Additional Coverage, for each described building insured under this Coverage Form, Is $10, 000 or 5% of the Limit of Insurance applicable to that building, whichever is less. If a damaged building is covered under a blanket Limit of Insurance which applies to more than one building or item of property, then the most we will pay under this Additional Coverage, for that damaged building, is the lesser of: $10, 000 or 5% times the value of the damaged buildiing as of the time of loss times the appl cable coinsurance percentage.

(3)

The ordinance or law referred to In e.(2) of this Additional Coverage is an ordinance or law that regulates the construction or repair of buildings or establishes zoning or land use requirements at the described premises, and is in force at the time of loss.

The amount payable under this Additional Coverage is additional insurance.

(7) With respect to (a)

this Additional

Coverage:

We will not pay for the increased Cost of Construction:

(I)

(4)

not pay any costs due to law that:

Under this Additional Coverage, we will an ordinance or

property is actually rereplaced, at the same or paired another premises; and
Until the
or

(ii)
to

(a)

You

comply with when the buildbefore the loss, even ing was undamaged; and
were

required

Unless the repairs or replacement are made as soon as reasonably possible after the loss or damage, not to exceed two years. We may extend this period in writing during the two years.

(b) You failed (5)

to

comply with.
Coverage,
we

(b)
will

Under this Additional not pay for:

(a)

The enforcement of any ordinance or law which requires demolition, repair,

eling

replacement, reconstruction, remodor remediation of property due to contamination by "pollutants" or due to the presence, growth, proliferation, spread or any activity of "fungus, wet or dry rot or bacteria; or
"

If the building is repaired or replaced at the same premises, or if you elect to rebuild at another premises, the most we will pay for the Increased Cost of Construction, subject to the provisions of e.(6) of this Additional Coverage, is the increased cost of construction at the same premises.
or law requires relocation to another premises, the most we will pay for the Increased Cost of Construction, subject to the provisions of e.(6) of this Additional Coverage, is the increased cost of construction at the new premises.

(c) If the ordinance

(b) Any

costs associated with the enforcement of an ordinance or law which requires any insured or others to test for, monitor, clean up, remove,

(8) This additional Coverage

contain, treat, detoxify
or in any way the effects of

or
"

neutralize,
"

respond to, or assess "pollutants, "fungus,

is not subject to the terms of the Ordinance or Law Exclusion, to the extent that such Exclusion would conflict with the provisions of this

wet or

dry rot or bacteria.

Additional Coverage.

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(9)

The costs addressed in the Loss Payment and Valuation Conditions, and the Replacement Cost Optional Coverage, in this Coverage Form, do not include the increased cost attributable to enforcement of an ordinance or law. The amount payable under this Additional Coverage, as stated in e.(6) of this Additional Coyerage, is not subject to such limitation,

on

electronic

computer system (including data) or a network to which it is connected, designed to damage or destroy any part of the system or disrupt its normal operation. But there
a

f.

Electronic Data

(1)

Under this Additional Coverage, electronic data has the meaning described Electronic under Property Not Covered Data.

is no coverage for loss or damage caused by or resulting from manipulatibn of a computer system (including electronic data) by any employee, including a temporary or leased employee, or by an entity retained by you or for you to inspect, design, install,

modify, maintain, repair
that system.

or

replace

(2) Subject
place
or

to the

provisions of this Additional

Coverage,

we will pay for the cost to rerestore electronic data which has

(4) The most we will pay under this Additional Coverage Electronic Data Is $2, 500 for all loss or damage sustained in any one policy year, regardless of the number of

occurrences

of loss

or

been destroyed or corrupted by a Covered Cause of Loss. To the extent that electronic data is not replaced or restored, the loss will be valued at the cost of replacement of the media on which the electronic data was stored, with blank media of substantially identical type.

damage

or

the

number of

(3)

The Covered Causes of Loss applicable to Your Business Personal Property apply Electronic to this Additional Coverage Data, subject to the following:

premises, locations or cornputer systems involved. if loss payment on the first occurrence does not exhaust this amount, then the balance is available for subsequent loss or damage sustained in but not after that policy year. With respect to an occurrence which begins in one policy year and continues or results in additional loss or damage in a subsequent policy year(s), all loss or damage is deemed to be sustained in the policy year in which the occurrence began.

(a)

Addi-tional

If the Causes Of Loss Special Form applies, coverage under this Electronic Data is Coverage limited to the "specified causes of loss" as defined in that form, and Collapse as set forth in that form.

5.

Coverage Extensions

Except

as

otherwise

tensions

apply to building described in the Declarations or in the open (or in a vehicle) within 100 feet of the described

provided, the following Ex property located in or on the

-

(b)

Broad Form If the Causes Of Loss applies, coverage under this AddiElectronic Data intional Coverage cludes Collapse as set forth in that form.

premises.

If a Coinsurance percentage of 80% or more is shown in the Declarations, you may extend the insurance provided by this Coverage Part as follows:
a.

(c) If

the Causes Of Loss Form is endorsed to add a Covered Cause of Loss, the additional Covered Cause of Loss does not apply to the coverage provided under this Additional Coverage Electronic Data.

Newly Acquired

Or Constructed

Property

(1) Buildings
You may extend the insurance that applies to Building to apply to:

(d)

The Covered Causes of Loss include a virus, harmful code or similar instruction introduced into or enacted

(a)

Your new buildings while being built on the described premises; and

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(b) Buildings you acquire

at locations,

(a) (b)

This 30

policy expires;

other than the described intended for:

premises,

(i)
(ii)

Similar use as the building described in the Declarations; or
Use as a warehouse.

days expire after you acquire the property or begin construction of that part of the building that would qualify as covered property; or
You

(c)

report values to us.

The most we will pay for loss or damage under this Extension is $250, 000 at each

building,

We will charge you additional premium for values reported from the date you acquire the property or begin construction of that part of the building that would qualify as

(2)

Your Business Personal

Property
b.

covered property.

(a)

policy covers Your Business Personal Property, you may extend that insurance to apply to:
If this

Personal Effects And Property Of Others
You may extend the insurance that Your Business Personal Property to

applies to apply to:

(I) Business personal property, ineluding such property that you newly acquire, at any location you acquire other than at fairs, trade
shows
or

(1) Personal

effects owned

by you, your offi-

exhibitions;

cers, your partners or members, your extenmanagers or your employees. This sion does not apply to loss or damage by

theft.

(li)

Business personal property, ineluding such property that you newly acquire, located at your newly constructed or acquired buildings at the location described in the Declarations; or

(2) Personal property custody or control.

of others in your care,

(III) Business personal property that you newly acquire, located at the described premises.
c.

The most we will pay for loss or damage under this Extension is $2, 500 at each described premises. Our payment for loss of or damage to personal property of others will only be for the account of the owner of the

property.
Valuable Papers And Records Electronic Data)

(Other Than

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

building. (b) This Extension
does not

apply to:

(1) You may extend the insurance that applies to Your Business Personal Property to apply to the cost to replace or restore
the lost information

(I)

Personal property of others that is temporarily in your possession in the course of Installing or performing work on such property; or

(ii) Personal property of others that is temporarily in your possession in the course of your manufacturing or wholesaling activities,
(3) Period
With
Of Coverage

on valuable papers and records for which duplicates do not exist. But this Extension does not apply to valuable papers and records which exist as electronic data. Electronic data has the meaning described under Property Not Covered Electronic Data.

(2)

If the Causes Of Loss Special Form applies, coverage under this Extension is limited to the "specified causes of loss" as defined in that form, and Collapse as set forth in that form.

respect to newly acquired
will

insurance on
or

or

at each

coverage

end

constructed property,
when any

(3)

of the

following first occurs:

Broad Form apIf the Causes Of Loss under this Extension inplies, coverage cludes Collapse as set forth in that form.

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(4) Under this Extension, the most we will pay to replace or restore the lost information is $2, 500 at each described premises, unless a higher limit Is shown in the
Declarations. Such amount is additional insurance. We will also pay for the cost of blank material for reproducing the records
labor to transcribe or copy the records. The costs of blank material and labor are subject to the applicable Limit of Insurance on Your Business Personal Property and therefore coverage of such costs is not additional insurance. d.

(1) Fire;
(2) Lightning;
(3) Explosion;

(whether or not duplicates exist), and (when there is a duplicate) for the cost of

(4)

Riot

or

Civil Commotion;

or

(5)

Aircraft.

Property Off-Premises

The most we will pay for loss or damage under this Extension is $1, 000, but not more than $250 for any one tree, shrub or plant. These limits apply to any one occurrence, regardless of the types or number of items lost or damaged in that occurrence.

(1)

You may extend the insurance provided by this Coverage Form to apply to your Covered Property while it is away from the described premises, if it is:

f.

Non-Owned Detached Trailers

(1)

(a) Temporarily

at a location you do not own, lease or operate;

You may extend the insurance that applies to Your Business Personal Property to apply to loss or damage to trailers that you do not own, provided that:

(a)
(b)

The trailer is used in your business; The trailer is in your care, custody or control at the premises described in the Declarations; and You have a contractual responsibility to pay for loss or damage to the trailer.
or

(b) In storage at a location you lease, provided the lease was executed after the beginning of the current policy
term;
or or

(c)

At any fair, trade show does not

exhibition.
to prop-

(c)

(2) This Extension
erty:

apply

(a)

In

or on a

vehicle;

(2)
or

We will not pay for any loss that occurs:

damage

(b)

custody or control of your salespersons, unless the property is
In such care, custody or control fair, trade show or exhibition.
at
a

In the care,

(a) While
hide

the trailer is attached to any

motor vehicle or motorized conveyance, whether or not the motor yeor

motorized conveyance is in

(3) The
e.

most we will pay for loss or under this Extension is $10, 000.

damage

motion;

(b) During hitching
tions,
hicle
or

Outdoor

Property

dentally
or

or unhitching operawhen a trailer becomes acciunhitched from a motor ve-

You may extend the insurance provided by this Coverage Form to apply to your outdoor fences, radio and television antennas (includ-

motorized conveyance.

(3)

dishes), signs (other than signs buildings), trees, shrubs and plants, (other than "stock" of trees, shrubs or plants), including debris removal expense, caused by or resulting from any of the following causes of loss if they are Covered Causes
of Loss:

ing satellite attached to

The most we will pay for loss or damage under this Extension is $5, 000, unless a higher limit is shown in the Declarations. This insurance is excess over the amount due (whether you can collect on It or not) from any other insurance covering such

(4)

property.

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Each of these Extensions is additional insurance unless otherwise indicated. The Additional Condition, Coinsurance, does not apply to these Extensions.
B.

The amount of loss to Bldg. 1 ($60, 100) is less than the sum ($60, 250) of the Limit of Insurance applicable to Bldg. 1 plus the Deductible. The Deductible will be subtracted from the amount of loss in calculating the loss payable for Bldg. 1:

Exclusions And Limitations
See

applicable

Causes of Loss Form as shown in the

Declarations.
C.

$
$

60, 100
250

Limits Of insurance
will pay for loss or damage in any one occurrence is the applicable Limit of Insurance shown in the Declarations, The most
we

59, 850 Loss Payable

Bldg.

1

The Deductible applies once per occurrence and therefore is not subtracted in determining the amount of loss payable for Bldg. 2. Loss payable for Bldg. 2 is the Limit of Insurance of $80, 000.
Total amount of loss $139, 850

The most

will pay for loss or damage to outdoor signs attached to buildings is $1, 000 per sign in any
we one occurrence.

payable: $59, 850

+

80, 000

=

The limits applicable to the Fire Department Service Charge and Pollutant Clean Up and Removal Additional Coverages are in addition to the Limits of

Example

No. 2:
assumes there is no

Insurance.

(This example, too, penalty.)

coinsurance

Payments under the Preservation of Property Additional Coverage will not increase the applicable Limit of Insurance.
D. Deductible In any one occurrence of toss or damage (hereinafter referred to as loss), we will first reduce the amount of loss if required by the Coinsurance Condition or the Agreed Value Optional Coverage. If the adjusted amount of loss Is less than or equal to the Deductible, of we will not pay for that loss. If the adjusted amount we will then subtract the loss exceeds the Deductible,

The Deductible and Limits of Insurance as those in Example No. 1.

are

the same

$70, 000 Loss to Bldg. 1: Limit of Insurance plus Deductible) (exceeds
Loss to

$90, 000 Limit of Insurance plus Deductible) (exceeds $60, 000 Loss Payable Bldg. 1: (Limit of insurance) $80, 000 Loss Payable Bldg. 2: of Insurance) (Limit Total amount of loss payable: $140, 000

Bldg. 2:

Deductible from the

adjusted
or

pay the resulting amount whichever is less.

amount of loss, and will the Limit of Insurance,

E.

Loss Conditions

The

When the occurrence involves loss to more than one item of Covered Property and separate Limits of Inin desurance apply, the losses will not be combined of the Deductible. But the Determining application ductible will be applied only once per occurrence.

following conditions apply in addition to the Common Policy Conditions and the Commercial Property
Conditions.
1.

Abandonment
There
us.
can

be

no

abandonment of any property to

Example

No. 1:
assumes

(This example

there is

no

coinsurance

2.

Appraisal
and you disagree on the value of the property or the amount of loss, either may make written demand for an appraisal of the loss. In this event, each party will select a competent and impartial appraiser. The two appraisers will select an umpire. If they cannot agree, either may request

penalty.)
Deductible: Limit of Insurance Limit of Insurance Loss to Bldg. 1:
Loss to

if

we

Bldg. 1: Bldg. 2:

Bldg.

2:

$ $ $ $ $

250

60, 000 80, 000 60, 100 90, 000

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that selection be made by

a judge of a court The appraisers will state sephaving jurisdiction. arately the value of the property and amount of loss. If they fail to agree, they will submit their differences to the umpire. A decision agreed to by any two will be binding. Each party will: a.

(7)

Send

us a

signed,

sworn

proof

of loss

containing the information we request to investigate the claim. You must do this within 60 days after our request. We will

supply you with the necessary forms.

Pay its chosen appraiser; and
Bear the other expenses of the

(8) Cooperate
appraisal
our

with us in the investigation settlement of the claim.

or

b.

and
b.

umpire equally.
to

If there is an appraisal, deny the claim.

we

will still retain

right

3.

Duties In The Event Of Loss Or Damage
a.

You must

see

that the
or

the event of loss

following damage
a

are

done in
4.

We may examine any insured under oath, while not in the presence of any other insured and at such times as may be reasonably required, about any matter relating to this insurance or the claim, including an insured's books and records. In the event of an examination, an insured's answers must be signed.

to Covered

Property:

Loss
a.

Payment

(1) Notify (2)

the broken.

police if

law may have been

In the event of loss or damage covered by this Coverage Form, at our option, we will either:

Give us prompt notice of the loss or damage. Include a description of the property

(1) Pay the value of lost
erty;

or

damaged

prop-

involved.

(3)

As soon as possible, give us a description of how, when and where the loss or

(2) Pay the
l ost
or

cost of repairing or replacing the damaged property, subject to b.

damage occurred.

below;

(4)

Take all reasonable steps to protect the Covered Property from further damage, and keep a record of your expenses necessary to protect the Covered Property, for consideration in the settlement of the claim. This will not increase the Limit of Insurance. However, we will not pay for any subsequent loss or damage resulting from a cause of loss that is not a Covered Cause of Loss. Also, if feasible, set the damaged property aside and in the best possible order for examination, At our request, give us complete inventories of the damaged and undamaged property. Include quantities, costs, values and amount of loss claimed.
As often
as

(3) Take all or any part of the property agreed or appraised value; or

at an

(4) Repair,

rebuild or replace the property with other property of like kind and quality, subject to b. below.

(5)

We will determine the value of lost or damaged property, or the cost of its repair or replacement, in accordance with the applicable terms of the Valuation Condition in this Coverage Form or any applicable provision which amends or supersedes the Valuation Condition. b. The cost to repair, rebuild or replace does not include the increased cost attributable to enforcement of any ordinance or law regulating the construction, use or repair of any property. We will give notice of our intentions within 30 days after we receive the sworn proof of loss.

(6)

may be

the loss or books and records.

permit

us

to

reasonably required, inspect the property proving damage and examine your
c.

Also permit us to take samples of damaged and undamaged property for inspection, testing and analysis, and permit us to make copies from your books and records.

d.

We will not pay you more than your financial interest in the Covered Property.

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e.

We may

losses with the owners of lost or damaged property if other than you. If we pay the owners, such payments will satisfy your claims against us for the owners' property. We will not pay the owners more than their financial interest in the Covered Prop-

adjust

(a)

erty.
f.
We may elect to defend you against suits arising from claims of owners of property. We will do this at our expense. We will pay for covered loss or damage to Covered Property within 30 days after we the sworn proof of loss, if you have complied with all of the terms of this Coverage Part and:

When this policy is issued to a tenant, and with respect to that tenant's interest in Covered Property, building means the unit or suite rented or leased to the tenant. Such building is vacant when it does not contain enough business personal property to conduct customary operations. When this
er or

(b)

g.

issued to the ownlessee of a building, general building means the entire building. Such building is vacant unless at least 31% of its total square footage is:

policy is

re-ceive
(1) We have reached agreement with
the amount of loss;
or

(I)

you

on

Rented to a iessee or sub-lessee and used by the lessee or sublessee to conduct its customary operations; and/or the

(II) Used by

building

owner

to

(2)

An

appraisal
name

award has been made.
tion b.
are

conduct customary operations.

insurance trustee, we will losses with you, but we will pay the adjust insurance trustee. If we pay the trustee, the payments will satisfy your claims against us. If you
an

(2) Buildings under construction
not considered vacant.

or renova-

Vacancy Provisions
If the building where loss or damage occurs has been vacant for more than 60 consecutive days before that loss or damage occurs:

5.

Recovered Property
or we recover any property after loss that party must give the other prompt settlement, notice. At your option, the property will be returned to you. You must then return to us the amount we paid to you for the property. We will pay recovery expenses and the expenses to repair the recovered property, subject to the Limit of

If either you

(1)

We will not pay for any loss or damage caused by any of the following even if they are Covered Causes of Loss:

(a) Vandalism; (b) Sprinkler leakage, unless you have protected the system against freezing;

Insurance. 6.

Unit-Owner's insurance
A unit-owner may have other insurance covering the same property as this insurance. This insurance is intended to be primary, and not to ute with such other insurance.

(c) Building glass breakage;
Water damage;
or

contrib-(d)

(e) Theft;

7.

Vacancy
a.

(f) Attempted theft.
Of Terms

Description

(2)

(1)

As used in this Vacancy Condition, the term building and the term vacant have the meanings set forth in (1)(a) and (1)(b) below:

With respect to Covered Causes of Loss other than those listed in b.(1)(a) through b.(1)(f) above, we will reduce the amount we would otherwise pay for the loss or damage by 15%.

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8.

Valuation
We will determine the value of Covered in the event of loss or damage as follows:
a.

(1) Multiply
Property

the value of Covered Property at the time of loss by the Coinsurance

percentage;

At actual cash value

as

damage, except
low. b.

as

provided

of the time of loss or in b. and c. be-

(2) Divide the Limit of Insurance of the property by the figure determined in Step (1);

If the Limit of Insurance for Building satisfies the Additional Condition, Coinsurance, and the cost to repair or replace the damaged building property is $2, 500 or less, we will pay the cost of building repairs or replacement. The cost of building repairs or replacement does not include the increased cost attributable to enforcement of any ordinance or law regulating the construction, use or repair of any property. However, the following property will be valued at the actual cash value even when attached to the building:

(3) Multiply the total amount of loss, before the application of any deductible, by the figure determined in Step (2); and
(4)
Subtract the deductible from the figure

determined in Step (3).

We will pay the amount determined in Step (4) or the Limit of Insurance, whichever is less. For the remainder, you will either have to rely on other insurance or absorb the loss yourself.

Example
When:

No. 1

(Underinsurance):
$
250, 000
80%

(1) Awnings or fioor coverings;
(2) Appliances for refrigerating, ventilating, cooking, dishwashing or laundering; or (3) Outdoor equipment or furniture.
c.

The value of the property is The Coinsurance percentage for it is The Limit of Insurance for it is The Deductible is The amount of loss is

$ $ $

100, 000
260

40, 000

Step (1): $250, 000 x 80%

Glass at the cost of replacement with glazing material if required by law.

safety

= $200, 000 minimum amount of insurance to (the meet your Coinsurance requirements)

9.

Waiver Of

Rights

Of Recovery

Step (2): $100, 000
Step (3): $40, 000
x

$200, 000
.50
=

=

.50

We waive our rights to recover payment from any unit-owner of the condominium that is shown in the Declarations. F.

$20, 000
=

Step (4): $20, 000 $250
-

$19, 750
re-

Additional Conditions
The following conditions apply in addition to the Common Policy Conditions and the Commercial Property Conditions.
I. Coinsurance
If

We will pay

no more than $19,750. The 250 is not covered. maining $20,

Example
When:

No. 2

(Adequate insurance):
$ 250, 000
80%

Coinsurance percentage is shown in the Declarations, the following condition applies,
a a.

We will not pay the full amount of any loss if the value of Covered Property at the time of loss times the Coinsurance percentage shown for it in the Declarations is greater than the Limit of Insurance for the property.

The value of the property is The Coinsurance percentage for it is The Limit of Insurance for it is The Deductible is The amount of loss is

$ $ $

200, 000
250

40, 000

Instead,

we

will determine the most

we

wili

pay using the following steps:

The minimum amount of insurance to meet 000 your Coinsurance requirement is $200, 000 x 80%). Therefore, the Limit of ($250, Insurance in this Example is adequate and no penalty applies. We will pay no more than $39, 750 ($40, 000 amount of loss minus the deductible of $260).

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b.

Limit of Insurance applies to two or separate items, this condition will apply to the total of all property to which the limit
one

If

d.

more

applies,

If we deny your claim because of your acts or because you have failed to comply with the terms of this Coverage Part, the mortgageholder will still have the right to receive loss payment if the mortgageholder:

Example
When:

No. 3:

(1) Pays
The value of property is: Bldg. at Location No. 1 Bldg. at Location No. 2 Personal Property at Location No. 2

$ $

75, 000 100, 000 75, 000 250, 000
90%

any premium due under this Coverage Part at our request if you have failed to do so;
a signed, sworn proof of loss within 60 days after receiving notice from us of your failure to do so; and

(2) Submits
$ $

The Coinsurance percentage for it is The Limit of Insurance for Buildings and Personal Property at Location Nos. 1 and 2 is The Deductible is The amount of loss is: Bldg. at Location No. 2 Personal Property at Location No. 2

(3) Has notified us of any change in ownership, occupancy or substantial change in risk known to the mortgageholder.
All of the terms of this Coverage Part will then apply directly to the mortgagoholder.
e.

$ $

180, 000 1, 000 30, 000
20, 000 50, 000

If

we

pay the

damage

and

mortgageholder for any loss or deny payment to you because of
com-

$
$ $

your acts or because you have failed to ply with the terms of this Coverage Part:

(1)

The

mortgageholder's rights under the mortgage will be transferred to us to the

Step (1): $250, 000 x 90%

=

$225, 000

extent of the amount we pay; and

(the minimum amount of insurance to meet your Coinsurance requirements and to avoid the penalty shown below)
Step (2): $180, 000
Step (3): $50, 000 x Step (4): $40, 000
maining
2.

(2)

The mortgageholder's right to recover the full amount of the mortgageholder's claim will not be impaired. At

-:-

$225, 000
=

=

.80

.80

$40, 000
=

$1, 000

$39, 000
re-

option, we may pay to the martgageholder the whole principal on the mortgage plus any accrued interest. In this event, your mortgage and note will be
our

transferred to

We will pay

no more than $39, 000. The $11, 000 is not covered.

remaining
f.

and you will pay your mortgage debt to us.
us

Mortgageholders
a.

If we cancel this policy, we will give written notice to the mortgageholder at least:

The term

mortgageholder includes trustee.

(1)
to
or-

b.

We will pay for covered loss of or buildings or structures to each

damage

10 days before the effective date of cellation if we cancel for your payment of premium; or

cannon-

mortgage-

holder shown In the Declarations in their
der of
c.

(2)
g.

precedence,

as

interests may appear.

30 days before the effective date of cancollation if we cancel for any other reason.
renew

If we elect not to

The mortgageholder has the right to receive loss payment even if the mortgageholder has started foreclosure or similar action on the

written notice to the 10 days before the

this policy, we will give mortgageholder at least expiration date of this

building or structure.

policy.

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G.

Optional Coverages
applicable in the Declarations, the following Optional Coverages apply separately to each item.
If shown
as

Example:
If:

1.

Agreed Value
a.

The Additional Condition, Coinsurance, does not apply to Covered Property to which this Optional Coverage applies. We will pay no more for loss of or damage to that property than the proportion that the Limit of Insurance under this Coverage Part for the property bears to the Agreed Value shown for it in the Declarations. If the expiration date for this Optional Coverage shown in the Declarations is not extended, the Additional Condition, Coinsurance, is and this Optional Coverage reinstated

The applicable Limit of Insurance is The annual percentage increase is The number of days since the beginning of the policy year (or last policy change) is The amount of increase is $100, 000 x .08 x 146 i- 365 = 3.

$

100, 000
8%

146

$

3, 200

Replacement Cost
a.

b.

Replacement Cost (without deduction for depredation) replaces Actual Cash Value in the Loss Condition, Valuation, of this Coverage
Form.

expires.
c.

b.

This

Optional Coverage
Personal

does not

apply to:

The terms of this Optional Coverage only to loss or damage that occurs:

apply

(1)
Op-

property of others;
or

(1)

after the effective date of this tional Coverage; and
On
or

(2)

Contents of a residence; Works of art,

(3)
(2)
Before the Agreed Value expiration date shown in the Declarations or the policy expiration date, whichever occurs first.

antiques or rare articles, Including etchings, pictures, statuary, marbIes, bronzes, porcelains and bric-a-brac.

2.

Inflation Guard
a.

The Limit of Insurance for property to which this Optional Coverage applies will automatically increase by the annual percentage shown in the Declarations.
c.

Under the terms of this Replacement Cost Optional Coverage, personal property owned indivisibly by all unit owners, and the property covered under Paragraph A.1.a.(6) of this

Coverage Form, are not considered personal property of others.

to be the

b.

The amount of increase will be:

(1)

The Limit of Insurance that applied on the most recent of the policy inception date, the policy anniversary date, or any other policy change amending the Limit of Insurance, times

You may make a claim for loss or damage covered by this insurance on an actual cash value basis instead of on a replacement cost basis. In the event you elect to have loss or damage settled on an actual cash value basis, you may still make a claim for the additional coverage this Optional Coverage provides if you notify us of your intent to do so within 180 days after the loss or damage.

(2)

The percentage of annual increase shown in the Declarations, expressed as a decimal (example: 8% is .08), times
The number of days since the beginning of the current policy year or the effective date of the most recent policy change amending the Limit of Insurance, divided by 365.

d.

We will not pay on a replacement cost basis for any loss or damage:

(3)

(1)

Until the lost

or or

tually repaired

damaged property replaced; and
or

is

ac-

(2) Unless the repairs

replacement

are

made as soon as reasonably after the loss or damage.

possible

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e.

We will not pay more for loss or damage on a replacement cost basis than the least of (1), (2) or (3), subject to f. below:

(1)
(2)

The Limit of Insurance

applicable
or

to the

lost or damaged

property;

this Extension may also be shown as applicable. If the Declarations show this Extension as applicable, then Paragraph 3.b.(1) of the Replacement Cost Optional Coverage is deleted and all other provisions of the Replacement Cost Optional Coverage apply to re-

The cost to replace the lost property with other property:

damaged
b.

placement
others.

cost

on

personal property

of

(a)

Of comparable material and and

quality;

With respect to replacement cost on the personal property of others, the following limitation applies: If an item(s) of personal property of others is subject to a written contract which governs your liability for loss or damage to that item(s),

(b) Used for the same purpose;

(3)

The amount actually spent that is necessary to repair or replace the lost or dam-

aged property.
If a building is rebuilt at a new premises, the cost described in e.(2) above is limited to the cost which would have been incurred if the building had been rebuilt at the original

then valuation of that item(s) will be based on the amount for which you are liable under such contract, but not to exceed the lesser of the replacement cost of the property or the applicable Limit of Insurance.

premises.
f. The cost of repair or replacement does not include the increased cost attributable to enforcement of any ordinance or law regulating the construction, use or repair of any prop-

H.

Definitions
1.

"Fungus"

means
or

any
or

type

or

form of

fungus,

in-

cluding mold

mildew, and any mycotoxins,

spores, scents leased by fungi.
2.

by-products produced

or re-

erty.
4.

Extension Of

Replacement

Cost To Personal

Property Of Others
a.

"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,

If the Replacement Cost Optional Coverage is shown as applicable in the Declarations, then

reconditioned

or

reclaimed.

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Policy Number: MCP0140064

Mt.

Hawley

Insurance

Company

BUSINESS INCOME (WITHOUT EXTRA COVERAGE FORM
Various provisions in this and is not covered.

EXPENSE)

policy restrict coverage.

Read the entire

policy carefully to determine rights, duties and

what is

Throughout this policy the words "you" and "your" refer to the Named Insured "us" and "our" refer to the Company providing this insurance.
Other words and
A.

" shown in the Declarations. The words "we,

phrases that appear in quotation marks have special meaning. Refer to Section G.

Definitions.

Coverage
1. Business Income Business Income means the:
a.

personal property

in a vehicle, the described premises include the area within 100 feet of the site at which the described premises are located.

With

taxes)
b.

Net Income (Net Profit or Loss before income that would have been earned or incurred; and

requirements set forth in the preif you occupy only part of the site at ceding paragraph, which the described premises are located, your premises means:
respect
to the
a.

Continuing normal operating incurred, including payroll.

expenses b.

The portion of the building which you rent, lease or occupy; and

Any

manufacturing risks, Net Income includes the net sales value of production,
For

area within the building or on the site at which the described premises are located, If that area services, or is used to gain access to, the described premises.

Coverage is provided
for
one or more

as described and limited below of the following options for which a Limit of insurance is shown in the Declarations:
a.

2.

Covered Causes Of Loss, Exclusions And Limitations

Business Income including "Rental Value."
Business Income other than "Rental Value." 3.

See applicable Causes of Loss Form the Declarations.

as

shown in

b.
c.

Additional Limitation

interruption Of Corn-

"Rental Value."

puter Operations
a.

If option a. above is selected, the term Business Income will include "Rental Value." If option c. above is selected, the term Business Income will mean

"Rental Value" only.
If Limits of Insurance are shown under more than one of the above options, the provisions of this Coverage Part apply separately to each.

Coverage for Business Income does not apply when a "suspension" of "operations" is caused by destruction or corruption of electronic data, or any loss or damage to electronic data, except as provided under the Additional Coverage Interruption Of Corn—

puter Operations.
b.

We will pay for the actual loss of Business Income you sustain due to the necessary "suspension" of your "operations" during the "period of restoration." The "suspension" must be caused by direct physical loss of or damage to property at premises which are described in the Declarations and for which a Bustness Income Limit of Insurance is shown in the Declarations. The loss or damage must be caused by or result from a Covered Cause of Loss. With respect to loss of or damage to personal property in the open or

Electronic data means information, facts or computer programs stored as or on, created or used on, or transmitted to or from computer software (including systems and applications software), on hard or floppy disks, CD-ROMs, tapes, drives, cells, data processing devices or any other repositories of computer software

which are used with electronically controlled equipment. The term computer programs, referred to in the foregoing descriplion of electronic data, means a set of related

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electronic instructions which direct the operations and functions of a computer or connected to it, which enable the computer or device to receive, process, store, retrieve or

(a) Used in
or

the construction, alterations
or

device

additions;

(b) Incidental
buildings.

to the occupancy of new

send data.
4. Additional
e.

Coverages
Loss

Expenses To Reduce

In the event of a covered loss of Business Income, we will pay necessary expenses you incur, except the cost of extinguishing a fire, to avoid further loss of Business Income. The total of our payment for Business Income loss and Expenses to Reduce Loss will not be more than the Business Income loss that would have been payable under this Coverage Form (after application of any Coinsurance penalty) if the Expenses to Reduce Loss had not been incurred. This coverage does not increase the Limit of Insurance.

if such direct physical loss or damage delays the start of "operations, the "period of restoration" will begin on the date "operations" would have begun if the direct physical loss or damage had not occurred.
"

d.

Extended Business Income

(1) Business Income Other Than "Rental
Value"

If the necessary "suspension" of your "operations" produces a Business Income loss payable under this policy, we will pay for the actual loss of Business Income you incur during the period that:

The Coinsurance condition does not apply specifically to such Expenses to Reduce Loss, but it is used as described above to determine the total amount payable.
b.

(a) Begins
are

"finished

the date property (except stock") is actually repaired, rebuilt or replaced and "operations"
on

resumed; and
on

Civil

Authority

(b) Ends

the earlier of:

We will pay for the actual loss of Business Income you sustain caused by action of civil authority that prohibits access to the described premises due to direct physical loss of or damage to property, other than at the described premises, caused by or resulting from any Covered Cause of Loss, This coverage begins 72 hours after the time of that action, and will apply for a period of up to three consecutive weeks from the date on which the
coverage
c.

(I) The date you could restore your reasonable with "operations, speed, to the level which would generate the business income
"

amount that would have existed if no direct physical loss or damage

had occurred;
_

or

(ii)

30 consecutive days after the date determined in (1)(a) above.

begins.

Alterations And New Buildings
We will pay for the actual loss of Business Income you sustain due to direct physical loss or damage at the described premises caused by or resulting from any Covered Cause of Loss to:

However, Extended Business Income does not apply to loss of Business Income incurred as a result of unfavorable business conditions caused by the impact of the Covered Cause of Loss in the
area

where the described located.

premises

are

(1) New buildings or structures, complete or under construction;
(2)
Alterations
or

whether

Loss of Business Income must be caused by direct physical loss or damage at the

described premises caused by or resulting from any Covered Cause of Loss.
"Rental Value" If the necessary "suspension" of your "operations" produces a "Rental Value" loss payable under this policy, we will pay for

additions to existing build-

ings

or

structures; and

(2)

(3) Machinery, equipment, supplies

or buildmaterials located on or within 100 feet ing of the described premises and:

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the actual loss of 'Rental Value" you incur during the period that:

in that form, and in that form.

Collapse

as

set forth

(a) Begins on the date property is actually repaired, rebuilt or replaced and tenantability is restored; and

(b)

applies,

Broad Form coverage under this Additional Coverage Interruption Of ComIf the Causes Of Loss

(b)

Ends

on

the earlier of:

set forth in that form.

puter Operations includes Collapse as
If the Causes Of Loss Form is endorsed to add a Covered Cause of Loss, the additional Covered Cause of Loss does not apply to the coverage provided under this Additional Coverage Interruption Of Computer

(I)

The date you could restore tenant reasonable with occupancy, to the level which would speed, generate the "Rental Value" that would have existed if no direct physical loss or damage had

(c)

occurred;

or

Operations. (d)
The Covered Causes of Loss include virus, harmful code or similar instruction introduced into or enacted
a
on

(ii)

30 consecutive days after the date determined in (2)(a) above.

Business Income does not apply to loss of "Rental Value" incurred as a result of unfavorable business conditions caused by the impact of the Covered Cause of Loss in the area where the described premises are located.

However,

Extended

a

electronic

data) or a network to which it is connected, designed to damage or destroy any part of the system or disrupt its normal operation. But there is no coverage for an interruption related to manipulation of a computer

computer system (including

Loss of "Rental Value" must be caused by direct physical loss or damage at the described premises caused by or resulting from any Covered Cause of Loss.
e.

system (including electronic data) by any employee, including a temporary or leased employee, or by an entity
retained

by

you

or

for you to

inspect,
or re-

design, install, maintain, repair place that system.

Interruption

Of Computer

Operations

(4)

The most

we

will pay under this Additional

(I) Under this Additional Coverage, electronic data has the meaning described under Additional Limitation Interruption Of Computer Operations,

Coverage

(2) Subject to all provisions of this Additional Coverage, you may extend the insurance
that

Interruption Of Computer Operations is $2, 500 for all loss sustained in any one policy year, regardless of the number of interruptions or the number of premises, locations or computer systems involved. If loss payment relating to the first interruption does not exhaust this
interruptions in that policy year. A balance remaining at the end of a policy year does
the next

applies to Business Income to apply to a "suspension" of "operations" caused by an interruption in computer operations due to destruction or corruption of electronic data due to Loss.
a

amount, then the balance is available for loss sustained as a result of subsequent
not increase the amount of insurance in policy year. With respect to any

Covered Cause of

(3)

With respect to the coverage provided under this Additional Coverage, the Covered Causes of Loss are subject to the

Interruption which begins in one policy year and continues or results in additional loss in a subsequent policy year(s), all loss is deemed to be sustained in the policy year in which the interruption began.

following:

(a)

If the Causes Of Loss Special Form applies, coverage under this Additional Coverage Interruption Of CornOperations is limited to the puter "specified causes of loss" as defined

(5) This Additional Coverage Interruption in Computer Operations does not apply to loss sustained after the end of the "period
of restoration, even if the amount of insurance stated in (4) above has not been exhausted.
"

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5.

Coverage Extension
If a Coinsurance percentage of 50% or more is shown in the Declarations, you may extend the insurance provided by this Coverage Part as follows:

1.

Appraisal
If we and you disagree on the amount of Net Income and operating expense or the amount of loss, either may make written demand for an appraisel of the loss. In this event, each party will select a competent and impartial appraiser.
The two appraisers will select an umpire. If they cannot agree, either may request that selection be made by a judge of a court having jurisdiction. The appraisers will state separately the amount of Net Income and operating expense or amount of loss. If they fail to agree, they will submit their differences to the umpire. A decision agreed to by any two will be binding. Each party will:
a.

NEWLY ACQUIRED LOCATIONS
a.

You may extend your Business Income Coyerage to apply to property at any location you acquire other than fairs or exhibitions, The most we will pay for loss under this Extension is $100, 000 at each location,

b.

c.

following first occurs:

Insurance under this Extension for each newly acquired location will end when any of the

Pay its chosen appraiser; and
Bear the other expenses of the

(1)

This

policy expires;

b.

appraisal
our

and

umpire equally.

(2) (3)

30 days expire after you to construct the property;

acquire
or

or

begin

If there is an appraisal, to deny the claim. 2.

we

will still retain

right

You

report values to us.

Duties In The Event Of Loss
a.

We will charge you additional premium for values reported from the date you acquire the

property.
This Extension is additional insurance. The Additional Condition, Coinsurance, does not apply to this Extension. B.
Limits Of Insurance

You must see that the the event of loss:

following
a

are

done in

(1) Notify (2)

the broken.

police

if

iaw may have been

Give us prompt notice of the direct physical loss or damage. Include a description of the property involved.
As soon as possible, give us a description of how, when, and where the direct physical loss or damage occurred. Take all reasonable steps to protect the Covered Property from further damage, and keep a record of your expenses neeessary to protect the Covered Property, for consideration in the settlement of the claim. This will not increase the Limit of Insurance. However, we will not pay for any subsequent loss or damage resulting from a cause of loss that is not a Covered Cause of Loss. Also, if feasible, set the damaged property aside and in the best possible order for examination. As often
as

The most we will pay for loss in any one occurrence is the applicable Limit of Insurance shown in the Declarations,
The limit applicable to the Coverage Extension is in addition to the Limit of Insurance.

(3)

(4)

Payments under the following Additional Coverages will not increase the applicable Limit of Insurance:
1.

Alterations and New Buildings;
Civil

2. 3.
4.

Authority;

Extended Business Income;

Expenses

to Reduce Loss.

C.

Loss Conditions

(5)

may be

The following conditions apply in addition to the Common Policy Conditions and the Commercial Property Conditions,

permit

us

to

the loss or books and records.

reasonably required, inspect the property proving damage and examine your

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Also

permit us to take samples of damaged and undamaged property for inspection, testing and analysis, and permit us to make copies from your books and
records. Send

(c) Deeds, liens or contracts.
b.

Resumption Of Operations
We will reduce the amount of your Business Income loss to the extent you can resume " your "operations, in whole or in part, by using

(6)

us a signed, sworn proof of loss containing the information we request to investigate the claim. You must do this within 60 days after our request. We will supply you with the necessary forms.

damaged

or

undamaged property (including

merchandise or stock) at the described pramises or elsewhere.
c.

(7) Cooperate
(8)

with us in the settlement of the claim.

investigation

or

If you intend to continue your business, you must resume all or part of your "operations" as quickly as possible.

"operations, or do not resume "operations" as quickly as possible, we will pay based on the length of time it would have taken to resume "operations" as quickly as possible.
resume

If you do not

"

4.

Loss

Payment

b.

We may examine any insured under oath, while not in the presence of any other insured and at such times as may be reasonably required, about any matter relating to this insurance or the claim, including an insured's books and records. In the event of an examination, an insured's answers must be signed.

we

We will pay for covered loss within 30 days after receive the sworn proof of loss, if you have complied with all of the terms of this Coverage Part and:
a.

3.

Loss Determination
a.

We have reached agreement with you amount of loss; or An

on

the

The amount of Business Income loss will be determined based on:

b.

appraisal award has been made.

D. Additional Condition

(1)

The Net Income of the business before the direct physical loss or damage

COINSURANCE
Coinsurance percentage is shown in the Declaretions, the following condition applies in addition to the Common Policy Conditions and the Commercial Property Conditions. If
a

occurred;

(2)

likely Net Income of the business if no physical loss or damage had occurred, but not including any Net Income that would likely have been earned as a result of an increase in the volume of business due to favorable business conditions caused by the impact of the Covered Cause of Loss on customers or on other
businesses;
expenses, including payroll expenses, necessary to resume "operations" with the same quality of service that existed just before the direct physical loss or damage; and
Other relevant sources of

The

We will not pay the full amount of any loss if the Limit of Insurance for Business Income is less than:
a.

The Coinsurance percentage shown for Buslness Income in the Declarations; times The
sum

(3) The operating

b.

of:
or

( 1)

The Net Income (Net Profit income taxes), and expenses,

Loss before

(4)

information, in-

(2) Operating
penses,

including payroll

ex-

cluding:

(a)

Your financial records and

accounting

procedures; (b) Bills,
and invoices and other vouchers;

that would have been earned or incurred (had no loss occurred) by your "operations" at the described premises for the 12 months following the inception, or last previous anniversary date, of this policy (whichever is later).

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Instead,
the

we

will determine the most

we

will pay using

depletion trucks).
Example

not

following steps:
for Multiply the Net Income and operating expense the 12 months following the inception, or last previous anniversary date, of this policy by the Coinsurance

retirement fund charges based

percentage depletion; welfare and
on

tonnage; hired

1.

No. 1

(Underinsurance):

percentage;

2.

Divide the Limit of Insurance for the described premises by the figure determined in Step 1; and
the total amount of loss determined in Step 2.

When: The Net Income and operating expenses for the 12 months following the inception, or last previous anniversary date, of this policy at the described premises would have been $400, 000 The Coinsurance

3.

Multiply

by the figure

percentage is

50%

We will pay the amount determined in Step 3 or the limit of insurance, whichever is less. For the remainder, you will either have to rely on other insurance or

The Limit of Insurance is The amount of loss is

$150, 000

$ 80, 000

absorb the loss yourself.

Step

1:

$400, 000

determining operating expenses for the purpose of exapplying the Coinsurance condition, the following
in

to meet your Coinsurance

(the

x 50% = $200, 000 minimum amount of insurance

requirements)

penses, if
of all
I.

applicable, shall operating expenses:

be deducted from the total

Step 2: $150, 000
Step
3:

$200, 000
.75
=

=

.75

$80, 000

x

$60, 000
than $60,000. The

Prepaid freight

outgoing;
We will pay
no more

remaining

2.

Returns and allowances;

$20, 000 is not covered. Example No.
2

3.
4.

Discounts;
Bad debts;
Collection expenses;

(Adequate insurance):

When: The Net Income and

operating

expenses

5.
6.

Cost of

supplies consumed (including transportation charges);
raw

stock and factory

for the 12 months following the inception, or last previous anniversary date, of this policy at the described premises would have been $400, 000
The Coinsurance

percentage is

50%

7.

Cost of merchandise sold

(including transportation

charges);
8.

The Limit of Insurance is
The amount of loss Is

$200, 000
$ 80, 000

Cost of other

supplies consumed (including transportation charges);

9.

employees)
contract;

Cost of services purchased from outsiders (not to resell, that do not continue under

The minimum amount of insurance to meet your Coinsurance requirement is $200, 000 ($400, 000 x 50%). Therefore, the Limit of Insurance in this Example is adequate and no penalty applies. We will pay no more than $80, 000 (amount of loss).
E.

10. Power, heat and refrigeration expenses that do not continue under contract (if Form CP 15 11 is

Optional Coverages
as applicable in the Declarations, the followOptional Coverages apply separately to each item. ing

attached);
11. All

If shown

payroll expense excluded attached); and
12.

ordinary payroll expenses

(if

or the amount of Form CP 15 10 is

1.

Maximum Period Of indemnity
a.

Special deductions for mining properties (royalties unless specifically included in coverage; actual depletion commonly known as unit or cost

The Additional Condition, Coinsurance, does not apply to this Coverage Form at the described premises to which this Optional Coyerage applies.

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b.

The most we will pay for loss of Business Income is the lesser of:

3.

Business Income Agreed Value
a.

To activate this

Optional Coverage:

(1)

The amount of loss sustained during the 120 days immediately following the beginning of the "period of restoration"; or The Limit of Insurance shown in the

(1)

A Business Income Report/Work Sheet must be submitted to us and must show financial data for your "operations":

(2)
2.

Declarations.

(a) During the

12 months prior to the date of the Work Sheet; and

Monthly Limit Of Indemnity
a.

(b)

The Additional Condition, Coinsurance, does not apply to this Coverage Form at the described premises to which this Optional

Estimated for the 12 months immediately following the inception of this

Optional Coverage.
(2)
The Declarations must indicate that the Business Income Agreed Value Optional Coverage applies, and an Agreed Value must be shown in the Declarations. The Agreed Value should be at least equal to:

Coverage applies.
b.

The most we will pay for loss of Business Income in each period of 30 consecutive days after the beginning of the "period of restoration" is:

(a)

The Coinsurance percentage shown in the Declarations; multiplied by

(1)
(2)
Example

The Limit of Insurance,

multiplied by

The fraction shown in the Declarations for this Optional Coverage, b.

(b) The amount of Net Income and operating expenses for the following 12 months you report on the Work Sheet.
The Additional

Condition, Coinsurance, is

suspended
$120, 000

until:

When: The Limit of Insurance is The fraction shown in the Declarations for this Optional Coverage is
The most we will pay for loss in each period of 30 consecutive days is: $120, 000 x 114 = $30, 000

(1)
(2)

12 months after the effective date of this

Optional Coverage;
114
The

or

expiration date of this policy;
occurs

whichever
c.

first.

We will reinstate the Additional Condition, Coinsurance, automatically if you do not submit a new Work Sheet and Agreed Value:

lf, in this example, the
actual amount of loss is:

(1)
$ 40, 000
20, 000 30, 000 $ 90, 000

Within 12 months of the effective date of this Optional Coverage; or When you request a change in your Business Income Limit of Insurance

Days 1-30 Days 31-60 Days 61-90
We will pay:

(2)
d.

If the Business Income Limit of Insurance is less than the Agreed Value, we will not pay more of any loss than the amount of loss

multiplied by:
$ 30, 000 20, 000 30, 000 $ 80, 000

Days 1-30 Days 31-60 Days 61-90
The remaining

(1) (2)

The Business Income Limit of Insurance; divided by The

Agreed Value.

$10, 000 is not covered.
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Example
When: The Limit of Insurance is The Agreed Value is The amount of loss is

(2) The date when business is resumed
new

at

a

permanent

location.

$100, 000 $200, 000 $ 80, 000
.50

"Period of restoration" does not include any increased period required due to the enforcement of
any ordinance
or

law that:

Step (a): $100, 000 Step (b): .50
x

.i-

$200, 000
=

=

$80, 000

$40, 000

(1) Regulates the construction, use or repair, or required the tearing down of any property; or
$40, 000 is

We will pay $40, 000. The remaining not covered.

(2) Requires any insured or others to test for,
monitor, clean up, remove, contain, treat,

4.

Extended Period Of Indemnity Under Paragraph A.4.d., Extended Business Income, the number "30" in Subparagraphs (1)(b) and (2)(b) is replaced by the number shown in the Declarations for this Optional Coverage.

detoxify or neutralize, or in respond to, or assess the

any way effects of

"pollutants."
The expiration date of this the "period of restoration."
4.

policy

will not cut short

F.

Definitions
1.

"Finished Stock" manufactured.

means

stock

you

have

"Finished stock" also includes whiskey and alcoholic products being aged, unless there is a Coinsurance percentage shown for Business Income in the Declarations.

"Pollutants" means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, and vapor, soot, fumes, acids, alkalis, chemicals includes materials to be recycled, waste. Waste reconditioned or reclaimed.

5.

"Rental Value" sists of:
a.

means

Business Income that

con-

"Finished stock" does not include stock you have manufactured that is held for sale on the premises of any retail outlet insured under this Coverage
Part.
2.

taxes)

"Operations" means:
a.

Your business activities scribed premises; and
The

occurring

at the deb.

Net Income (Net Profit or Loss before income that would have been earned or incurred as rental income from tenant occupanthe Declarecy of the premises described in tions as furnished and equipped by you, including fair rental value of any portion of the described premises which is occupied by you; and

Continuing
including:

normal

operating

expenses

b.

tenantability of the described premises, if coverage for Business Income including "Rental Value" or "Rental Value" applies.
means the

incurred in connection with that

premises,

(1) Payroll; and

3.

"Period of Restoration" that:
a.

period

of time

(2)

72 hours after the time of direct physical loss or damage caused by or resulting from any Covered Cause of Loss at the described premises; and

Begins

The amount of charges which are the legal obligation of the tenant(s) but would otherwise be your obligations.
means: or

6.

"Suspension"
a.

The slowdown

cessation of your business

b.

Ends

on

the earlier of:

activities;
b.

or

(1)

The date when the property at the described premises should be repaired, rebuilt or replaced with reasonable speed and similar quality; or

That a part or all of the described premises is rendered untenantable, if coverage for Business Income including "Rental Value" or "Rental Value" applies.

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Policy Number:

MCP0140064

Mt.

Hawley

Insurance

Company

CAUSES OF LOSS
Words and A.

-

SPECIAL FORM
Definitions.

phrases that appear in quotation marks have special meaning. Refer to Section F.

Covered Causes Of Loss When Special is shown in the Declarations, Covered Causes of Loss means Risks Of Direct Physical Loss unless the loss is: 1. 2. Excluded in Section B., Exclusions;
or

(2) Landslide, including any earth sinking, rising or shifting related to such event;
(3) Mine subsidence, meaning subsidence of a man-made mine, whether or not mining activity has ceased;

(4)

Limited in Section C., Limitations;

that follow,
B.

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

sinking (other than sinkhole collapse), rising or shifting including soil conditions which cause settling, cracking or other disarrangement of foundations or other parts of realty. Soil conditions indude contraction, expansion, freezing, thawing, erosion, improperly compacted
Earth soil and the action of water under the ground surface.

through (4) above,

Ordinance Or Law
The enforcement of any ordinance
or

as described in b.(1) results in fire or explosion, we will pay for the loss or damage caused by that fire or explosion.

But if Earth Movement,

law:

(1) Regulating the construction, of any property; or

use or

repair

(5) Volcanic eruption, explosion or effusion. But if volcanic eruption, explosion or effusion results in fire, building glass breakage

loss

(2) Requiring the tearing down of any property, including the cost of removing its
debris,

ing

Volcanic Action, we will pay for the damage caused by that fire, buildglass breakage or Volcanic Action.
or or

Volcanic action means direct loss or damage resulting from the eruption of a volcano

This exclusion, Ordinance Or Law, whether the loss results from:

applies

when the loss

or

damage is caused

by:

(1)

An ordinance or law that is enforced even if the property has not been damaged; or The increased costs incurred to comply with an ordinance or law in the course of construction, repair, renovation, remodeling or demolition of property, or removal of its debris, following a physical loss to that property.

(a)

Airborne volcanic blast shock waves; dust
or

or

airborne

(2)

(b) Ash,
(c)

particulate matter; or

Lava flow.

Ail volcanic eruptions that occur within any 168 hour period will constitute a sin-

gle occurrence.
Volcanic action does not include the cost to remove ash, dust or particulate matter that does not cause direct physical loss or damage to the described property.

b.

Earth Movement

(1) Earthquake, including any earth sinking, rising or shifting related to such event;

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c.

Governmental Action
Seizure
or

g.

Water

destruction of property by order of

(1) Flood,
not;

governmental authority,
will pay for loss or damage caused by or resulting from acts of destruction ordered by governmental authority and taken at the time of a fire to prevent its spread, if the fire would be covered under this Coverage Part. But
we

surface water, waves, tides, tidal waves, overflow of any body of water, or their spray, all whether driven

by wind

or

(2) (3)
(4)

Mudslide

or

rnudflow;
or

Water that backs up sewer, drain or sump;
Water under the

overflows from

a

or

d.

Nuclear Hazard Nuclear reaction or radiation, or radioactive contamination, however caused.
But if nuclear reaction or radiation, or radioactive contamination, results in fire, we will pay for the loss or damage caused by that fire.

on, or flowing or seeping

ground surface pressing through:
floors
or

(a) Foundations, walls,
surfaces;

paved
or

(b) Basements, whether paved or not;

(c) Doors, windows or other openings.
But if Water, as described In g.(1) through g.(4) above, results in fire, explosion or sprinkler leakage, we will pay for the loss or damage caused by that fire, explosion or sprinkler

e.

Utility Services
The failure of power or other utility service supplied to the described premises, however caused, if the failure occurs away from the described premises. Failure includes lack of sufficient capacity and reduction in supply. But if the failure of power or other utility service results in a Covered Cause of Loss, we will pay for the loss or damage caused by that Covered Cause of Loss. This exclusion does not
or

leakage.
h.

"Fungus,

"

Wet Rot,

Dry Rot And Bacteria
or

Presence, growth, proliferation, spread

any

activity

of "fungus, wet

"

or

dry

rot or bacteria.

apply to the Business to Extra Expense coverIncome coverage age. Instead, the Special Exclusion in Paragraph B.4.a.(1) applies to these coverages.
War And

" But if "fungus, wet or dry rot or bacteria results in a "specified cause of loss, we will pay for the loss or damage caused by that "specifled cause of loss."
"

This exciusion does not

apply:
or

f.

Military Action
or

(1)
civil war;

When "fungus, wet or dry rot results from fire or lightning; or

"

bacteria

(1) War, including undeclared

(2)

(2) Warlike action by a military force, including action in hindering or defending against an actual or expected attack, by any government, sovereign or other authority using military personnel or other
agents;
or

To the extent that coverage is provided in Limited Coverthe Additional Coverage age For "Fungus, Wet Rot, Dry Rot And Bacteria with respect to loss or darnage by a cause of loss other than fire or

"

lightning.
Exclusions B.1.a. through B.1.h.
not the loss event results in
or

apply whether or widespread damage
or

(3) Insurrection, rebellion, revolution, usurped power, or action taken by governmental authority in hindering or defending against
any of these.

affects

a

substantial

area. or

2.

We will not pay for loss resulting from any of the

damage caused by

following:

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a.

Artificially generated electrical current, electrical deing electric arcing, that disturbs
vices, appliances
But if
or

includ-

wires.

steam turbines results in fire will pay for the or combustion explosion, we loss or damage caused by that fire or steam

engines

or

results in fire,

will pay for the loss that fire. age caused by
we

artificially generated electrical current
or

dam-

b.
c.

Delay,

loss of use or loss of market.

We will also pay for or resulting from loss or the explosion of gases or fuel within the furthe flues or nace of any fired vessel or within which the gases of compassages through bustion pass.

combustion

damage caused by

explosion.

f.

Continuous

ing
d.

agricultural smudgSmoke, vapor or or industrial operations,
gas from

repeated seepage or leakage the presence or condensation of of water, or over humidity, moisture or vapor, that occurs a period of 14 days or more.
or

(1) Wear and tear; (2) Rust
tion, hidden
other corrosion, decay, deterioraor latent defect or any quality in property that causes it to damage or
or

g.

Water, other liquids, powder
rial that leaks
or

destroy itself;

or molten mateflows from plumbing, heating, air conditioning or other equipment (except fire protective systems) caused by or resulting from freezing, unless:

(3) Smog;

(1)
or

You do your best to maintain heat in the

building or structure;

or

(4) Settling, cracking, shrinking

expansion;
or re-

(2)
h.

(5) Nesting

or

infestation,

or

discharge

You drain the equipment and shut off the supply if the heat is not maintained.
or

lease of waste products or secretions, insects, birds, rodents or other animals.

by

Dishonest

criminal act by you, any of your
em-

partners, members, officers, managers,

(6) Mechanical breakdown, including rupture force. or bursting caused by centrifugal

direcployees (including leased employees), or tors, trustees, authorized representatives whom you entrust the property for anyone to any purpose:
or (1) Acting alone or in collusion with others;

But if mechanical breakdown results in elevator collision, we will pay for the loss or damage caused by that elevator collision.

(7)

The following

causes

of loss to

personal

property:
(a) Dampness or dryness
of atmosphere;

(2) Whether or not occurring during the of employment.
This exclusion does not

hours

(b) Changes in
ture;
or

or

extremes of temperai.

apply to acts of destruction by your employees (including leased employees); but theft by employees (including
leased

employees) is

not covered.

(c) Marring

or

scratching.

Voluntary parting with any property by you

or

But if an excluded cause of loss that is listed in 2.d.(1) through (7) results in a "specified
cause

entrusted the anyone else to whom you have do so by any fraudulent property if induced to scheme, trick, device or false pretense.

of loss" or building glass breakage, we will pay for the loss or damage caused by that "specified cause of loss" or building glass

j.
k.

Rain, snow, ice
in the open.

or

sleet to

personal property

breakage.
ta.

Collapse, except

steam

Explosion of steam boilers, steam pipes, engines or steam turbines owned or leased by you, or operated under your control. But if explosion of steam boilers, steam pipes, © ISO Properties, Inc., 2001
Archive

provided below in the Adfor Collapse. But if collapse ditional Coverage results in a Covered Cause of Loss at the described premises, we will pay for the loss or caused by that Covered Cause of
as

damage
Loss.

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I.

Discharge, dispersal, seepage, migration,
lease
or

re-

a.

escape of

"pollutants" unless the

dis-

charge, dispersal, seepage, migration, release or escape is itself caused by any of the

(And Extra Expense) Business Income (Without Coverage Form, Extra Expense) Coverage Form, Or Extra Expense Coverage Form
Business Income
We will not pay for:

"specified causes charge, dispersal,
lease
or

of loss." But if the dis-

seepage, migration, reescape of "pollutants" results in a "specified cause of loss, we will pay for the loss or damage caused by that "specified cause of loss."
"

(1) Any

This exclusion, I., does not apply to damage to glass caused by chemicals applied to the

loss caused directly or indirectly by the failure of power or other utility service supplied to the described premises, however caused, if the failure occurs outside of a covered building. Failure includes lack of sufficient capacity and reduction in

glass.
m.

supply.
an

insured to use all reasonable and preserve property from means to further damage at and after the time of loss,

Neglect of

save

3.

We will not pay for loss

or damage caused by or from any of the following, 3.a. through resulting 3.c. But if an excluded cause of loss that is listed in 3.a. through 3.c. results in a Covered Cause of Loss, we will pay for the loss or damage caused by that Covered Cause of Loss.
a.

But if the failure of power or other utility service results in a Covered Cause of Loss, we will pay for the loss resulting from that Covered Cause of Loss.

(2) Any loss

caused
or

by or resulting from:
destruction of "finished

(a) Damage
stock";
or

Weather conditions. But 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 or

(b)

The time required to ished stock."

reproduce apply

"fin-

This exclusion does not

to Extra

damage.
b. Acts
or or or decisions, including the failure to act decide, of any person, group, organization

Expense.

(3) Any
rect

loss caused

by

or

physical

loss or

resulting damage to

from diradio or

governmental body.
or

television antennas (including satellite dishes) and their lead-in wiring, masts or
towers.
survey-

C.

Faulty, Inadequate

defective:

(1) Planning, zoning, development, ing, siting;

(4) Any increase ing from:

of loss caused

by

or

result-

(2) Design, specifications, workmanship, repair, construction, renovation, remodeling, grading, compaction;
(3) Materials
repair, construction, renovation or remodeling; or
used

(a) Delay in rebuilding, repairing or replacing the property or resuming "operations, due to interference at the
"

in

location of the rebuilding, repair or replacement by strikers or other persons;
or

(4) Maintenance;
of part or all of any scribed premises. 4.

(b) Suspension, lapse
property
on or

or

cancellation of
contract. But if

off the de-

any license, lease

or

Special Exclusions following provisions apply only fled Coverage Forms.
The
to the

speci-

the suspension, lapse or cancellation is directly caused by the "suspension" " of "operations, we will cover such loss that affects your Business Income during the "period of restore-

tion" and any extension of the

"period

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of restoration" in accordance with the terms of the Extended Business Income Additional Coverage and the Extended Period Of Indemnity Optional Coverage or any variation of these.

assumption of liability in a contract or agreement. But this exclusion does not apply to a written lease agree-

ment in which you have assumed IIability for building damage resulting from an actual or attempted burglary or robbery, provided that:

(5) Any

Expense caused by or resulting from suspension, lapse or cancellation of any license, lease or contract beyond the
Extra

(i)

Your and

assumption of liability was executed prior to the accident;
The building is Covered Property under this Coverage Form.

"period

of restoration." loss.

(6) Any other consequential
b.

(II) (b)

Leasehold Interest Coverage Form

Nuclear Hazard
We will not defend any claim or "suit, or pay any damages, loss, expense or obligation, resulting from nuclear reaction or radiation, or radioactive contamination, however caused.
"

(1)

Paragraph B.1.a. Ordinance Or Law, does not apply to insurance under this Coverage Form.
We will not pay for any loss caused

(2)

by:
C.

(a)
(b)

Your The

cancelling the lease;
or

Limitations The following limitations apply to all policy forms and endorsements, unless otherwise stated.
1. We will not pay for loss of
or

suspension, lapse
or

cancellation

of any license;

(c) Any other consequential
c.

loss.

damage

to

property,

Legal Liability

Coverage Form

(1)

The following exclusions do not apply to insurance under this Coverage Form:

as described and limited in this section. In addition, we will not pay for any loss that is a consequence of loss or damage as described and lirnited in this section.

(a) Paragraph B.1.a.,
tion;

Ordinance Or Law; Ac-

a.

(b) Paragraph B.1.c., Governmental

(c) Paragraph B.1.d., Nuclear Hazard; (d) Paragraph 8.1.e., Utility Services;
and

Steam boilers, steam pipes, steam engines or steam turbines caused by or resulting from any condition or event inside such equipment. But we will pay for loss of or damage to such equipment caused by or resulting from an explosion of gases or fuel within the furnace of any fired vessel or within the flues or passages through which the gases of combustion pass.

(e) Paragraph B.1.f.,
Action.

War And

Military

b.

equipment
condition

Hot water boilers or other water heating caused by or resulting from any
or

(2)

The following additional exclusions apply to insurance under this Coverage Form:
c.

equipment,

event inside such boilers other than an explosion.

or

(a) Contractual Liability
We will not defend any claim or "suit, or pay damages that you are legally liable to pay, solely by reason of your
"

The interior of any building or structure, or to personal property in the building or structure, caused by or resulting from rain, snow, sleet, Ice, sand or dust, whether driven by wind or

not, unless:

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(1)

The

building or structure first sustains damage by a Covered Cause of Loss to its roof or walls through which the rain,
sleet, ice, sand
or

(2)
3.

To Business Income coverage or to Extra Expense coverage.

snow,

dust enters; or

(2)

The loss or damage is caused by or results from thawing of snow, sleet or ice on the building or structure.

special limit shown for each category, a. through d., is the total limit for loss of or damage to all property in that category. The special limit applies to any one occurrence of theft, regardless
The

d.

as or

Building materials and supplies not attached part of the building or structure, caused by

of the types or number of articles that are lost or damaged in that occurrence. The special limits

are:

resulting from theft.

a.

However, this limitation does not apply to:

$2, 500 for furs, fur garments and garments trimmed with fur. $2, 500 for jewelry, watches, watch
and other
does not
move-

(1) Building materials and supplies held for sale by you, unless they are insured under the Builders Risk Coverage Form; or (2)
e.

b.

ments, jewels, pearls, precious and semiprecious stones, bullion, gold, silver, platinum

Business Income coverage pense coverage.

or

Extra Ex-

precious alloys or metals. This limit apply to jewelry and watches worth

$100
c.

or

less per item.

Property that

is missing, where the only evidence of the loss or damage is a shortage disclosed on taking inventory, or other instances where there is no physical evidence to show what happened to the property.

$2, 500 for patterns, dies, molds and forms.
for stamps, tickets, including lottery tickheld for sale, and letters of credit. ets

d.

$250

f.

person or to a place outside the described premises on the basis of unauthorized instructions.
a

Property that has been transferred

to

These special limits are part of, not in addition to, the Limit of Insurance applicable to the Covered

Property.
This limitation, C.3., does not apply to Business Income coverage or to Extra Expense coverage.

2.

We will not pay for loss of or damage to the following types of property unless caused by the "specified causes of loss" or building glass

breakage:
e.

4.

Animals, and then only if they

are

killed

or

their destruction is made necessary. b.

We will not pay the cost to repair any defect to a system or appliance from which water, other liguid, powder or molten material escapes. But we will pay the cost to repair or replace damaged parts of fire extinguishing equipment If the

Fragile articles such as statuary, marbles, chinaware and porcelains, if broken. This restriction does not apply to: (1) Glass;
or

damage:
a.

Results in discharge of any substance from automatic fire protection system; or
Is

an

b.

directly caused by freezing.
Income coverage
or

(2)
c.

Containers of property held for sale.

Builders' machinery, tools and equipment owned by you or entrusted to you, provided

However, this limitation does
iness

not apply to Busto Extra Expense

such property is Covered

Property.
D.

coverage. Additional Coverage

However, this limitation does not apply:

Collapse

(1) If the property is located on or within 100 feet of the described premises, unless the premises is insured under the Builders Risk Coverage Form; or
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The term Covered Cause of Loss includes the Additional Coverage Collapse as described and limited in .1 D. through D.5. below.

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I.

With respect to buildings:
a.

Collapse means an abrupt falling caving in of a building or any part of a building with the result that the building or part of the its intended building cannot be occupied for
purpose;
A is in building or any part of a building that in is not condanger of falling down or caving sidered to be in a state of collapse;
A

down

or

not The criteria set forth in 1.a. through 1.d. do under this limit the coverage otherwise provided Causes of Loss Form for the causes of loss listed in 2.a., 2.d. and 2.e.
3.

With respect to the
a.

following property:

b.

Outdoor radio or television antennas (including satellite dishes) and their lead-in wiring, masts or towers;

b.
c.

Awnings, gutters and downspouts;
Yard Mures; Outdoor swimming

c.

building that is standing is not considered to be in a state of collapse even if of the it has separated from another part building;

part of

a

d.
e.

pools;

d.

A

a building that is standing or any part of that is standing is not considered to building be in a state of collapse even if it shows evidence of cracking, bulging, sagging, bending, leaning, settling, shrinkage or expansion.

Fences;

f. g. h.
I.

Piers, wharves and docks;
Beach
or

diving platforms or appurtenances;

2.

We will pay for direct

Covered Property, caused by collapse of a buildinsured under ing or any part of a building that is or that contains Covered this Coverage Form if Property insured under this Coverage Form, of the the collapse is caused by one or more

physical

loss

or

damage to

Retaining walls; and
Walks, roadways and other paved surfaces;

if the collapse is caused by a cause of loss listed in 2.b. through 2.f., we will pay for loss or damage to that property only if:
a.

following:
a.

The

building glass, all only this Coverage Part;
b.

"specified

causes

of loss"
as

or

breakage of

insured against in
b.

Such loss or damage is a direct result of the collapse of a building insured under this Coverage Form; and The is Covered Coverage Form.

the Decay that is hidden from view, unless such decay is known to an inpresence of sured prior to collapse;
or vermin damage that is hidden from unless the presence of such damage is view, known to an insured prior to collapse;

property

Property under this

4.

personal property abruptly falls down or caves in and such collapse is not the result of collapse of a
If

c.

Insect

building,

we

will

pay for loss

or

damage

to

Covered Property caused sonal property only if:
a.

by such collapse

of per-

d.
e.

Weight of people or personal property;
Weight of rain that collects on
a

The

collapse was caused by a Cause of Loss listed in 2.a. through 2.f. above;
The side The

roof;
b.

f.

Use of defective material or methods in construction, remodeling or renovation if the coloccurs during the course of the con-

personal property
a

which collapses is in-

building; and

lapse

c.

struction, remodeling
if the

or

renovation. However,

collapse occurs after construction, remodeling or renovation is complete and is caused in part by a cause of loss listed in 2.a. through 2.e., we will pay for the loss or dam-

property which collapses is not of a kind listed in 3. above, regardless of whether that kind of property is considered to be personal property or real property.

The coverage stated in this

or methage even if use of defective material in construction, remodeling or renovaods, tion, contributes to the collapse,

Paragraph 4. does not and/or apply to personal property if marring is the only damage to that personal scratching property caused by the collapse.
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Collapse of personal property does not mean cracking, bulging, sagging, bending, leaning, settling, shrinkage or expansion.
5.

4.

This Additional Coverage, Collapse, will not inin this crease the Limits of Insurance provided Coverage Part.

The coverage provided under this Limited CoverLimit of Inage does not increase the applicable If a particular surance on any Covered Property. " occurrence results in loss or damage by "fungus, wet or dry rot or bacteria, and other loss or damfor the total of all loss age, we will not pay more, or damage, than the applicable Limit of Insurance
on

E.

Additional Coverage
"

Limited Coverage For "FunAnd Bacteria gus, Wet Rot, Dry Rot
1. The coverage described in" E.2. and E.6. only when the "fungus, wet or dry rot or

the affected Covered

Property.

applies

bacteria is the result of
causes

one

or

more

of the

following
riod and

that policy peduring if all reasonable means were used to only save and preserve the property from further damage at the time of and after that occurrence.
occurs
a.

the

If there is covered loss or damage to Covered " Property, not caused by "fungus, wet or dry rot or bacteria, loss payment will not be limited by the terms of this Limited Coverage, except to the ex" tent that "fungus, wet or dry rot or bacteria causes an increase in the loss. Any such increase in the loss will be subject to the terms of this Lim-

Held Coverage.
5. The terms of this Limited Coverage do not increase or reduce the coverage provided under Paragraph F2. (Water Damage, Other Liquids, Powder Or Molten Material Damage) of this

A

"specified lightning; or

cause

of loss" other than fire

or

b.

Flood, if the Flood Coverage Endorsement

applies to the affected premises.
2.

Causes Of Loss Form
"

or

under the Additional

We will pay for loss or damage by "fungus, wet or Coverdry rot or bacteria. As used in this Limited means: age, the term loss or damage
a.

Coverage
6.

Collapse.

Direct

loss or damage to Covered caused by 'fungus, wet or dry rot or Property bacteria, including the cost of removal of the

physical
"

"

"fungus, wet or dry rot or bacteria;

The following, 6.a. or 6.b., applies only if Business Income and/or Extra Expense coverage applies to the described premises and only if the "suspension" of "operations" satisfies all terms and conditions of the applicable Business Income and/or

Extra
a.

Expense coverage form.
"

b.

The cost to tear out and replace any part of the building or other property as needed to or gain access to the "fungus, wet or dry rot bacteria; and
"

c.

The cost of

repair, replacement or restoration of the damaged property is completed, provided there is a reason to believe that "fungus, wet or dry rot or bacteria are present.
"

testing performed after removal,

3.

The coverage described under E.2. of this Limited the Coverage is limited to $15, 000. Regardless of limit is the most we will pay number of claims, this for the total of all loss or damage arising out of all occurrences of "specified causes of loss" (other than fire or lightning) and Flood which take place in a 12-month period (starting with the beginning of the present annual policy period). With respect to a particular occurrence of loss which results in "fungus, wet or dry rot or bacteria, we will not pay more than a total of $15, 000 even if the "fungus, wet or dry rot or bacteria continues to be present or active, or recurs, in a later policy period,
"
"

If the loss which resulted in "fungus, wet or dry rot or bacteria does not in itself necessi" tate a "suspension" of "operations, but such "suspension" is necessary due to loss or damage to property caused by "fungus, wet or dry rot or bacteria, then our payment under Business Income and/or Extra Expense is lirnited to the amount of loss and/or expense sustained In a period of not more than 30 days. The days need not be consecutive.
"

b.

If a covered "suspension" of "operations" was caused by loss or damage other than "funremediagus, wet or dry rot or bacteria but " tion of "fungus, wet or dry rot or bacteria " prolongs the "period of restoration, we will pay for loss and/or expense sustained during the delay (regardless of when such a delay occurs during the "period of restoration"), but such coverage is limited to 30 days. The days
"

need not be consecutive.

CP 10 30 04 02
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F.

Additional Coverage Extensions
1.

b.

Property in Transit
This Extension applies only to your property to which this form applies.
a.

personal

We will pay for expenses incurred to remove or replace obstructions when repairing or replacing glass that is part of a building. This does not include removing or replacing window displays.

You may extend the insurance provided by this Coverage Part to apply to your personal property (other than property in the care, custody or control of your salespersons) in transit more than 100 feet from the described premises. Property must be in or on a motor vehicle you own, lease or operate while between points in the coverage territory,

This Coverage Extension, F.3., does not increase the Limit of Insurance.

G. Definitions 1.

b.

Loss or damage must be caused by or result from one of the following causes of loss:

"Fungus" means any type or form of fungus, including mold or mildew, and any mycotoxins, spores, scents or by-products produced or released by fungi. "Specified Causes of Loss" Fire; lightning; explosion;
the following: windstorm or hail; smoke; aircraft or vehicles; riot or civil commotion; vandalism; leakage from fire extinguishing equipmeans

2.

(1) Fire, lightning, explosion, windstorm
hall, riot or civil commotion,
or
or

or

vandalism,

(2) Vehicle collision, upset

overturn. Collision means accidental contact of your yehide with another vehicle or object. It does not mean your vehicle's contact with the road bed.

ment; sinkhole collapse; volcanic action; falling

objects; weight of damage.
a.

snow, ice or

sleet; water

Sinkhole
or

(3) Theft of an entire bale, case or package by forced entry into a securely locked body or compartment of the vehicle.
entry.
c.

collapse means the sudden sinking collapse of land into underground empty spaces created by the action of water on limestone or dolomite. This include:
cause

of loss does not

There must be visible marks of the forced

(1)
or

The cost of filling sinkholes;

or

The most we will pay for loss der this Extension is $5, 000.

damage

un-

(2) Sinking or collapse of land underground cavities.
b.
age to:

into man-made

This Coverage Extension is additional insurance. The Additional Condition, Coinsurance, does not apply to this Extension. 2.
Water Damage, Other Molten Material Damage

Falling objects does not include

loss

or

dam-

Liquids, Powder
or

Or

(1)
(2)

Personal

property in the
a

open;

or

If loss

or

damage caused by

covered water or other material damage loss occurs,

we will also pay the cost to tear out and replace any part of the building or structure to repair damage to the system or appliance from which the water or other substance escapes. This Coverage Extension does not increase the Limit of Insurance,

resulting from liquid, powder or molten

The interior of

property inside unless the roof

a

building or structure, or building or structure,
outside wall of the
a

or an

building or structure is first damaged by falling object.
c.

Water

3.

Glass
a.

We will pay for expenses incurred to put up temporary plates or board up openings if repair or replacement of damaged glass is

damage means accidental discharge or leakage of water or steam as the direct result of the breaking apart or cracking of a plumbing, heating, air conditioning or other system or appliance (other than a sump system in-

cluding

delayed.

its related equipment and parts), that is located on the described premises and contains water or steam.

CP 10 30 04 02
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Policy Number: MCP0140064

Mt.

Hawley

Insurance Company

COMMERCIAL PROPERTY CONDITIONS
This Coverage Part is subject to the following conditions, the Common and Additional Conditions in Commercial Property Coverage Forms.
A.

Policy Conditions and applicable Loss

Conditions

CONCEALMENT,
FRAUD

MISREPRESENTATION

OR

E.

LIBERALIZATION
If we adopt any revision that would broaden the coverage under this Coverage Part without additional premium within 45 days prior to or during the policy period, the broadened coverage will immediately apply to this Coverage Part.

This Coverage Part is void in any case of fraud by you as it relates to this Coverage Part at any time. It is also void if you or any other insured, at any time, intentionally conceal or misrepresent a material fact

concerning:
1.

F.

NO BENEFIT TO BAILEE
No person insurance.
or

This Coverage Part; The Covered

organization, other than you, having

2. 3.
4.

Property;

custody of Covered Property will benefit from this

Your interest in the Covered
A claim under this

Property; or

G.

OTHER INSURANCE 1. You may have other insurance subject to the same plan, terms, conditions and provisions as the insurance under this Coverage Part. If you do, we will pay our share of the covered loss or damage. Our share is the proportion that the applicable Limit of Insurance under this Coverage Part bears to the Limits of Insurance of all insurance covering on the same basis.
If there is other insurance covering the same loss damage, other than that described in 1. above, we will pay only for the amount of covered loss or damage in excess of the amount due from that other insurance, whether you can collect on it or not. But we will not pay more than the applicable Limit of Insurance.
or

Coverage Part.

B.

CONTROL OF PROPERTY

Any

act or

neglect

beyond your direction insurance.

of any person other than you or control will not affect this

The breach of any condition of this Coverage Part at any one or more locations will not affect coverage at any location where, at the time of loss or damage, the breach of condition does not exist.

2.

C.

INSURANCE COVERAGES
If two

UNDER

TWO

OR

MORE

or more of this policy's coverages apply to the loss or damage, we will not pay more than the actual amount of the loss or damage.

same

H.

POLICY PERIOD, COVERAGE TERRITORY Under this Coverage Part: 1. We
a.

D.

LEGAL ACTION AGAINST US No one may

cover

loss

or

damage commencing:

bring

a

legal action against

us

under this

Coverage Part unless:
1.

During the policy period shown in the Declarations; and
Within the coverage

There has been full compliance with all of the terms of this Coverage Part; and

b.

territory.

2.
2.

The coverage
a.

The action is brought within 2 years after the date on which the direct physical loss or damage occurred.

territory is:

The United States of America territories and possessions);

(including its

CP 00 90 07 88
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b.
c.

Puerto

Rico; and

2.

Canada.

After a loss to your Covered Property or Covered Income only if, at time of loss, that party is one of the following:
a.

I.

TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US
If any person or organization to or for whom we make to repayment under this Coverage Part has rights those rights are transcover damages from another, ferred to us to the extent of our payment. That do everything necessary person or organization must and must do nothing after loss to to secure our rights impair them. But you may waive your rights against another party in writing:
1.

Someone insured A business firm:

by this insurance;

b.

(1) (2)
c.

Owned That

or

controlled by you;
controls you;

or

owns or

or

Your tenant.

Prior to a loss to your Covered ered Income.

Property

or

Cov-

This will not restrict your insurance.

CP 00 90 07 88
84 of 109

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ISO Commerical Risk Services, Inc., 1983, 1987
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Policy Number: MCP0140064

Mt.

Hawley Insurance Company

COMMON POLICY CONDITIONS
All Coverage Parts included in this
A.

policy

are

subject to the following conditions.
D.

CANCELLATION
1. The first Named Insured shown in the Declarations may cancel this policy by mailing or delivering to us advance written notice of cancellation. We may cancel this policy by mailing or delivering to the first Named Insured written notice of cancellation at least:
a.

INSPECTIONS AND SURVEYS
1. We have the
a.

right to:

Make

inspections and surveys at any time;
reports
on

2.

b.

Give you and

the conditions

we

find;

10
Or

days before the effective date of cancellawe

c.

Recommend changes.
are

tion if

cancel for

nonpayment of premium;

2.

We

b.

30 days before the effective date of cancellation if we cancel for any other reason.

3.

We will mail or deliver our notice to the first Named Insured's last mailing address known to
us.

obligated to make any inspections, surveys, reports or recommendations and any such actions we do undertake relate only to insurability and the premiums to be charged. We do not make safety inspections. We do not undertake to perform the duty of any person or organization to provide for the health or safety of workers or the public. And we do not warrant that conditions:
not
a.

4.

Notice of cancellation will state the effective date of cancellation. The policy period will end on that date.
is cancelled, we will send the first Named Insured any premium refund due. If we cancel, the refund will be pro rata. if the first Named Insured cancels, the refund may be less than pro rata. The cancellation will be effective even if we have not made or offered a refund. If this

Are safe

or

healthful;

or

b.

Comply

5.

policy

with laws, standards.

regulations,

codes

or

3.

Paragraphs 1. and 2. of this condition apply not only to us, but also to any rating, advisory, rate service or similar organization which makes insurance inspections, surveys, reports or
recommendations.

6.

If notice is mailed, proof of mailing will be sufficient proof of notice.

4.

B.

CHANGES
This contains all the agreements between you and us concerning the insurance afforded. The first Named Insured shown in the Declarations is authorized to make changes in the terms of this policy with or our consent. This policy's terms can be amended endorsement issued by us and made a waived

Paragraph 2. of this condition does not apply to any inspections, surveys, reports or recommendations state
we or

may make relative to certification, under
or

policy

municipal statutes, ordinances
or

regula-

tions, of boilers, pressure vessels
E.

elevators.

Premiums
The first Named Insured shown in the Declarations: 1.

only by

part
C.

of this

policy.
Is responsible for the and

EXAMINATION OF YOUR BOOKS AND RECORDS
We may examine and audit your books and records the as they relate to this policy at any time during and up to three years afterward. policy period

payment of

all

premiums;

2.

Will be the payee for any return

premiums we pay.

IL 00 17 11 98
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F.

Under This Transfer Of Your Rights And Duties

Policy
Your

not be rights and duties under this policy may in the written consent except transferred without our
case

of death of an individual named insured,

be transferred to If you die, your rights and duties will but only while acting within your legal representative Until the scope of duties as your legal representative. is appointed, anyone having your legal representative of your property will have proper temporary custody but only with respect to that your rights and duties

property.

IL 00 17 11 98
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Policy Number: MCP0140064

Mt.

Hawley Insurance Company

PLEASE READ IT CAREFULLY. THIS ENDORSEMENT CHANGES THE POLICY.

OF PREMIUM MINIMUM PREMIUM ENDORSEMENT PERCENT
condition in this This endorsement changes the CANCELLATION

policy to include the following:
policy premium
or

of If you cancel this policy, a minimum premium and payable by you. ever is greater, will be due

35 % of the annual

$75, 804, whichwe can-

for us to cancel. If of premium will be considered a request by you A. Your failure to make a timely payment will be immediately due and payable; cel for non-payment of premium, the minimum premium
B.

at our discretion if: Cancellation for non-payment of premium may be rescinded,

1.

We choose to rescind cancellation, and you pay cancellation; and We have verification that the Covered

us

the full

premium due within
same or

10

days of the effective

date of

2.

Property

is in the

better condition than at the time of

cancellation.
but after the due is paid within 10 days of the effective date of cancellation, If we rescind cancellation and the premium date of cancellathe at our discretion, a lapse in coverage between cancellation has become effective, there may be tion and the date the premium is paid.

THIS POLICY REMAIN UNCHANGED. ALL OTHER TERMS AND CONDITIONS OF

CPR 2129
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Policy Number: MCP0140064

Mt.

Hawley

Insurance

Company

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

EARTHQUAKE EXTENSION
The following is added to this
A.

policy:

We will pay for direct 1.

physical loss or damage due to:
or

seismic forces, Earthquake, meaning any shaking or trembling of the crust of the earth caused by underground by breaking and shifting of rocks beneath the surface. Volcanic

2.

result of natural causes, of molten rock, rock fragments, gases, of the earth. ashes, mud, lava flows, and other natural substances through an opening in the crust

eruption, meaning the expulsion,

as a

or volAll earthquake or volcanic eruption that occurs within any 168 hour period will constitute a single earthquake hour period begins, however, we will not pay for loss or damage occurcanic eruption. You may decide when the 168 after the expiration date of this policy. ring before the effective date of this policy, or for any loss occurring

B. We will not pay for direct 1.

physical

loss or

damage

due to:

Earth movement including landslide, mudflow, earth earthquake or volcanic eruption.

sinking, earth rising

or

shifting unless directly caused by
a

2.

Sprinkler leakage, meaning

the leakage or discharge from an automatic of the system, due to earthquake or volcanic eruption. tank that is part

sprinkler system, including collapse of

for Earthquake where C. The Limits of Insurance shown in the Declarations is a limit or amount per occurrence, except We will not, in any case, exceed this limit or amount in one disaster, casualty or event, annual aggregate applies. is shown below: matter how many locations are involved. This Limit of insurance applies unless a sublimit

an no

Sub limit:
D.

$ 1,000, 000

be deducted % of the total values at risk at the time of loss or $ Refer to CPR-2218, whichever is greater, will n/a total value of propfrom each adjusted claim due to earthquake or volcanic eruption. Total values at risk means the at risk apply per location. erty covered calculated in accordance with the provisions of this policy. Values
1.

If this

policy

includes both

collectible
income.
2.

regardless

property damage and business Income, the above limits will be the maximum amounts of whether the loss involves property damage alone or both property damage and business

in this If any insurance other than concurrent covers the property insured in this policy, the deductible specified loss or damage which we would pay under the endorsement will apply in full against that portion of any claim for insurance. provisions of this policy, regardless of any provisions to the contrary of any other

The

the following: provisions of this endorsement apply to all locations covered by this policy, except

ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED.

CPR 2155
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Policy Number: MCP0140064

Mt. Hawley Insurance Company

POLICY. PLEASE READ IT CAREFULLY. THIS ENDORSEMENT CHANGES THE

ADDITIONAL NAMED INSUREDS
The following
are

added to this

policy as Named insureds:

-

-

El Ad Group Florida LLC El Ad Residences at Mirarnar Lakes LLC

OF THIS POLICY REMAIN UNCHANGED. ALL OTHER TERMS AND CONDITIONS

CPR 2212
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Policy Number: MCP0140064

Mt. Hawley Insurance Company

POLICY. PLEASE READ IT CAREFULLY. THIS ENDORSEMENT CHANGES THE

PROTECTIVE SAFEGUARDS
This endorsement modifies insurance

provided under the following:

COMMERCIAL PROPERTY COVERAGE PART FARM COVERAGE PART SCHEDULE
Prem. No.
1 1
*

Bldg.
No.

Protective Safeguards

Symbols Applicable
"P-1" Automatic

All All

Sprinkler System

Describe any "P-9:"

WARRANTED: Smoke Detectors

Operational in all

Units.

*

Information

required

to

on this endorsement, will be complete this Schedule, if not shown

shown in the Declarations.

A.

The

following is added to the:

Automatic Sprinkler System
a.

means: or

Commercial Property Conditions
Other General Conditions in the Farm Property Form Additional Coverages, Farm Provisions Conditions, Definitions
— —

Any automatic fire protective system, including connected:

extinguishing

(1) Sprinklers and discharge nozzles;
(2) Ducts, pipes, valves and fittings;

General Conditions in the Mobile Agricultural Form Machinery and Equipment Coverage
Form General Conditions in the Livestock Coverage

(3) Tanks,

their ports; and

component parts

and sup-

mains. (4) Pumps and private fire protection

PROTECTIVE SAFEGUARDS
1.
are required As a condition of this insurance, you devices or services listto maintain the protective ed in the Schedule above.

(B) When supplied tive system:
and

from

an

automatic fire protec-

(1) Non-automatic

fire

protective systems;

2.

endorseThe protective safeguards to which this the following ment applies are identified by

(2) Hydrants, standpipes and outlets.
"P-2"

symbols:
"P-1"

Automatic Fire Alarm,
tire
a.

protecting the
or

en-

building,

that is:

Automatic Sprinkler System, including related supervisory services.

Connected to a central station;

IL 04 15 04 98
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b.

Reporting

to

a

public

or

private

fire

STANDARD PROPERTY POLICY
CAUSES OF LOSS FORM

alarm station.

FARM PROPERTY
AND

"P-3"

Security Service, with a recording sysrounds tem or watch clock, making hourly the entire building, when the covering

MOBILE

AGRICULTURAL MACHINERY EQUIPMENT COVERAGE FORM

premises are not in actual operation.

LIVESTOCK COVERAGE FORM
caused We will not pay for loss or damage from fire if, prior to the fire, you: resulting 1. Knew of any

"P-4"

Service Contract with a privately owned fire department providing fire protection service to the described premises.
The protective Schedule.

by

or

"P-9"

system described

in the

B.

section The following is added to the EXCLUSIONS of:

suspension or impairment in any above protective safeguard listed in the Schedule of the fact; or and failed to notify us
listed Failed to maintain any protective safeguard Schedule above, and over which you had in the

2.

CAUSES OF LOSS BASIC FORM
-

control, In complete working order.

CAUSES OF LOSS CAUSES OF LOSS

-

BROAD FORM SPECIAL FORM

part of art Automatic Sprinkler System to breakage, leakage, freezing conditions
If

is shut off due
or

opening

-

of sprinkler heads, notification to necessary if you
hours.
can

MORTGAGE HOLDERS ERRORS AND OMISSIONS COVERAGE FORM

will not be restore full protection within 48
us

IL 04 15 04 98
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Policy Number: MCP0140064
THIS

Mt. Hawley Insurance Company

PLEASE READ ENDORSEMENT CHANGES THE POLICY.

IT CAREFULLY.

FLORIDA CHANGES
This endorsement modifies insurance

provided under the following:
We will not include the value of

PART COMMERCIAL PROPERTY COVERAGE
to the Standard A. When this endorsement is attached CP 00 99 the term Coverage Part in Property Policy this endorsement is replaced by the term Policy. B. The

paint
or

or

water-

proofing
a.

material to determine:
Hail Deducti-

The amount of the Windstorm

following provision applies when
as

a

Coinsurance
b.

ble;

or

percentage

is shown in the Declarations:
follows:

Florida law states

The value of Covered Property when the Coinsurance Condition.

applying

in this policy Coinsurance contract: The rate charged the use of the coinsurance clause is based upon of the Insured. attached to this policy, with the consent C. The

D. The LOSS

for covered number of days within which we must pay is replaced by the following: loss or damage

PAYMENT Condition dealing with the

following is added:
or

If loss

exclusion apresults from Windstorm, the following

damage to Covered Property

is caused

by or

Provided you have complied with all the terms for covered loss Coverage Part, we will pay damage:

of

this
or

plies
1.

in:

Broward County;
Dade County;
Martin County;
Monroe County; Palm Beach County; and
of the intraAli the areas east of the west bank of: Coastal Waterway in the Counties
a.

the sworn (1) Within 20 days after we receive written agreement proof of loss and reach

with you;

or

2.
3.

(2) Within 30 days after we receive proof of loss and:

the sworn

4.
5. 6.

(a) (b)
E.

There is
or

an

entry of

a

final

judgment;

There is with us.

a

filing of an appraisal award

Sinkhole Collapse
1.

Indian River; and
St. Lucie.

b.

Basic Form and the Causes of Loss Loss Broad Form;
— —

of the Paragraph A.10., SINKHOLE COLLAPSE, Causes of

Windstorm

Exterior

Paint

and

Waterproofing
2.

Exclusion
We will not pay for loss 1.
2.
or

Paragraph A.2.c.(8)

damage to:,
3.

of COVERED CAUSES OF OmisLOSS of the Mortgageholders Errors and and sions Coverage Form;

Paint;

or

Standard Property Policy

Paragraph A.3.h., SINKHOLE COLLAPSE,

of the

Waterproofing material;
to the exterior of Buildings,
are

replaced by the following:
Page 1 of 2

applied

CP 01 25 06 95
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Collapse, meaning loss or damage caused by the sudden sinking or collapse of land into underground empty spaces created by the
Sinkhole

F.

Paragraph F.1. of DEFINITIONS of the Causes of Loss Special Form is replaced by the following:

action of water on limestone or similar rock formations. This cause of loss does not include:
a.

1.

The cost of filling sinkholes;

or

collapse means the sudden sinking or of land Into underground empty spaces collapse created by the action of water on limestone or similar rock formations. This cause of loss does not include:
Sinkhole
a.

b.

Sinking or collapse of land into man-made underground cavities.

The cost of filling sinkholes;

or

b.

Sinking or collapse of land into underground cavities.

man-made

CP 01 25 06 95
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ISO Commercial Risk Services, Inc., 1994
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Policy Number:

MCP0140064

Mt.

Hawley Insurance Company

LIMITATION OF LIABILITY ENDORSEMENT
FORM B

The
A.

following special terms and

conditions

apply to this policy:

The Limit of Insurance or amount of insurance shown in the Declarations page of this policy is a limit or amount per " occurrence, except for "earthquake" and "flood, if covered, where an annual aggregate applies. We will not pay more than this limit or amount in one disaster, casualty, or event, no matter how many locations are involved. The premium for this policy is based on the schedule or statement of values on file with there is a loss under this policy, we will not pay more than the least of the following: 1.
2.
us or

B.

attached to this

policy. If

The actual

adjusted

amount of

loss, minus the deductible(s) that applies;
occurrence

The Limit of Insurance or amount of insurance per dorsed onto this policy; or

shown in the Declarations page of this

policy or
on

en-

3.

The stated value for the specific property involved in the loss with us, minus the deductible(s) that applies.

as

shown

on

the latest statement of values

file

ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED.

CPR 2126
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Policy Number: MCP0140064

Mt.

Hawley Insurance Company
--

EXCLUSION OF CERTAIN COMPUTER RELATED LOSSES

"A"

PLEASE READ IT CAREFULLY. THIS ENDORSEMENT MODIFIES INSURANCE PROVIDED.
indirect, to "electronic data

A. We will not pay for loss
1.

or

damage, whether direct

or

processing equipment":

Arising from "computer virus" and/or "computer hacking";
covered location or your computer to a person or Caused by the transfer or delivery of covered property from a but not limon the basis of unauthorized or fraudulent instructions, including place outside of a covered location not owned by you, or via any telecommunications transited to instructions transmitted by a computer, whether or
mission method;

2.

3. 4.

Arising from

costs to

research, replace or restore the information contained
or

on

electronic

or

magnetic media;
or

Arising from electrical disturbance including electrical erasure of electronic recordings;

magnetic damage, disturbance

of electronic recordings,

5.

of power surge, blackout, Arising from power supply disturbance including interruption power supply,

or

brownout;
or

6.

whether as a result of loss to your Web Site operation During the period when your business is interrupted the described premises; maintained or operated by you and whether or not located at
of: Arising from the failure, malfunction or inadequacy
a.

not

7.

Such "electronic data

processing equipment" whether belonging to you or to others;

b.

that directly or indirectly use or rely on, in any manner, such Any products, and any services, data or functions to correctiy recognize, process, distinguish, "electronic data processing equipment" due to the inability An example is the inability of computer software to recognize interpret, or accept one or more dates or times.
the year 2000; and/or

8.

installation, maintenance, repair, replaceArising from any advice, consultation, design, evaluation, inspection, or test for, any potential or actual or done by you or for you to determine, rectify ment or supervision provided

problems described in this endorsement.
or

Such loss

damage is excluded regardless of any other quence to the loss or damage.

cause or

event that contributes

concurrently

or

in any

se-

B.

excluded by this policy results, then subject to all of its terms However, if direct physical loss or damage not otherwise loss or damage. and conditions, we will only pay for the resulting direct physical
Claims for

C.

resulting physical loss

or

damage at multiple locations will constitute

a

separate

occurrence at each

location.
D.

DEFINITIONS
1.

"Computer virus"

the introduction into other code that is intended to:
means
a.

a

data processing code computer of any self-replicating electronic

or

Result in the deletion, destruction,

generation,

or

modification of data;

CPR 2187
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b.
c.

Alter, contaminate, corrupt, degrade,

or

destroy the integrity, quality,

or

performance of data;
corruption
of any hardware
or

Damage, destroy, or cause malfunction, inadequacy, degradation, with hardware; or ing, recording, or storage media used

or

process-

d.
2.

network or web site. Deny access to or services from your computer, your computer
or

intrusion by an individual "Computer hacking" means an unauthorized network that can: by you or not, into a computer or computer
a.

group of individuals, whether

employed

Result in the deletion, destruction,

generation,
or

or

modification of data;

b.
c.

Alter, contaminate, corrupt, degrade,
Result in the scanning
or

destroy the integrity, quality, or performance of data;

copying of data;
or

d.

Cause damage, destruction, inadequacy, malfunction, degradation, or ing, recording, or storage media used with hardware;

corruption of any hardware

or

process-

e.

Result in the denial of access to

or

denial of services from your computer, your computer network,
the

or

web site.

3.

"Electronic data
a.

processing equipment" includes

following items:

Computer hardware, including microprocessors; Computer application software; Computer operating systems and related software;

b.
c.

d.
e.

Computer networks;
Microprocessors (computer chips) not part of any computer system; Any other computerized
or

f. g.

electronic equipment

or

components;

or

Any

that directly or indirectly use or rely upon, in any any services, data or functions a. through f. above. This includes any advice, consultation, design, manner, any of the items listed In items or done by you installation, maintenance, repair, replacement or supervision provided evaluation, inspection, with items listed in a. through f. above. or for you to determine, rectify or test for, any potential problems other

products, and

UNCHANGED. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN

CPR 2187
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Policy Number:

MCP0140064

Mt.

Hawley Insurance Company

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

CERTIFIED TERRORISM LOSS
1.

The
A.

following definitions

are

made a

part of this policy.
act that is certified by the Secretary of the of the United States:

"Certified act of terrorism" Secretary of State and the
1.
2.

means an

Treasury,

in concurrence with the

Attorney General

To be To be

an

act of terrorism;
or an

a

violent act

act that is

dangerous

to human

life, property,

or

infrastructure;

3.

To have resulted in
a.

damage:
or

Within the United States;

b.

To an air carrier (as defined in section 40102 of title 49, United States Code); to a United States flag vessel (or a vessel based principally in the United States, on which United States income tax is paid and whose insurance coverage is subject to regulation in the United States), regardless of where the loss occurs; or at the premises of any United States mission; and

4.

To have been committed by an individual or individuals acting on behalf of any foreign person or foreign interest, as part of an effort to coerce the civilian population of the United States or to influence the policy or affect the conduct of the United States Government by coercion.
means

B.

"Certified terrorism loss"

loss that results from
or

a

"certified act of terrorism."

2.

The "terms" of any terrorism exclusion amended by the following provision:

limitation in coverage that is

part of

or

that is attached to this

policy

are

This exclusion
3.

or

limitation In coverage does not

apply to "certified

terrorism loss."

If the Secretary of the Treasury determines that the amount of "certified terrorism loss" has exceeded the maximum annual liability as set forth by the Federal Terrorism Risk Insurance Act of 2002 or any amendments thereto, we will not pay for any portion of "certified terrorism loss" that exceeds the maximum annual liability. Neither the "terms" of this endorsement nor the "terms" of any other terrorism endorsement attached to this

4.

policy pro-

vide coverage for any loss that would otherwise be excluded by this
A. B.

policy under:
or

Exclusions that address war, military action,

or

nuclear hazard;

Any other exclusion.

5.

The absence of any other terrorism endorsement does not cluded by this policy under:
A.
B.

imply

coverage for any loss that would otherwise be

ex-

Exclusions that address war,

military action, or nuclear hazard;

or

Any other exclusion.

ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED.

CPR 2221
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i

Policy Number:

MCP0140064

Mt.

Hawley

Insurance

Company

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

TERRORISM EXCLUSION
1.

We will not pay for loss, damage, cost or expense caused directly or indirectly by "terrorism" or any action taken to control, prevent, or suppress terrorism. Such loss, damage, cost or expense is excluded regardless of any other cause or event that contributes concurrently or in any sequence to this loss. "Terrorism" for purposes of this exclusion
A.
means:

The

disruption or threatened disruption of financial, governmental, transportation, communication, computer utility services which appears to be for political, religious, economic, cultural, ethnic, ecological or racial ends;

or

B.

The

use or threatened use of force, violence or criminal conduct which appears to be for political, religious, nomic, cultural, ethnic, ecological or racial ends;
use or

eco-

C.

The

threatened

use

of

force, violence

or

criminal conduct for the apparent purpose of

or

with the result of

harming

or

intimidating

a

civilian

population;
or

D. The use or threatened use of biological, chemical or nuclear substances for the apparent purpose of result of harming or intimidating a civilian population; E.

with the

Any act or threatened act of force, violence or criminal conduct by any person or persons acting on behalf of or in connection with any organization with a stated goal of overthrowing or influencing the policy of any government,
whether lawful
or

otherwise; and/or

F.

Any act or threatened
terrorist act

act of force, violence

or

criminal conduct that has been labeled, identified

or

described

as a

by the executive branch of the United States government.

2.

Fire

Exception

The

following provision applies only where relevant

state law

terrorism, and where a premium for such has been paid.

requires

coverage for fire losses

resulting from

acts of

If an act of terrorism results in fire, we will pay for the loss or damage caused by that fire. This exception for fire applies only to direct loss or damage by fire to covered property. This exception does not apply to coverage for loss of earnings, extra expense, or fire legal liability.
3.

Neither the "terms" of this endorsement nor the "terms" of any other terrorism endorsement attached to this provide coverage for any loss that would otherwise be excluded by this policy under:
A. B.

policy

Exclusions that address war,

military action,

or

nuclear hazard;

or

Any other exclusion.

4.

The absence of any other terrorism endorsement does not cluded by this policy under:
A.

imply

coverage for any loss that would otherwise be

ex-

Exclusions that address war,

military action,

or

nuclear

hazard;

or

B.

Any other exclusion.
ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED,

CPR 2230

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Policy Number:

MCP0140064

Mt.

Hawley Insurance Company

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

CONDITIONAL TERRORISM EXCLUSION
(Relating
to the Certified Terrorism Loss Endorsement

already on this Policy.)

Applicability of the provisions of this endorsement.
A.

The
1.

provisions

of this endorsement will

apply on the date

one

of the following situations first

occurs:

The federal Terrorism Risk Insurance

2002, terminates;
2.

or

Program ("Program") established by

the Terrorism Risk Insurance Act of

The Program is renewed, extended or otherwise continued in effect without coverage available to you and with changes that
a.

a

requirement

to make terrorism

Increase our statutory percentage deductible under the Program for terrorism losses. (That deductible determines the amount of all certified terrorism losses we must pay in a calendar year, before the federal government shares in subsequent payment of certified terrorism losses.); or

b.

deductible;
c.

Decrease the federal government's statutory percentage share in potential terrorism losses above such
or

Redefine terrorism or make insurance coverage for terrorism subject to provisions from those that apply to other types of events or occurrences under this

or

requirements that differ
or

policy.

The Program is scheduled to terminate at the end of December 31, 2005 unless renewed, extended continued by act of Congress. B.

otherwise

If the provisions of this endorsement become applicable, CPR 2221 CERTIFIED TERRORISM LOSS is rescinded in its entirety and will become void. Any other endorsements or policy conditions pertaining to terrorism and a part of this policy remain in effect until the expiration of this policy. If the provisions of this endorsement do NOT become applicable, policy that addresses "certified acts of terrorism" will continue
any terrorism endorsement already endorsed to this in effect unless we notify you of changes to that

C.

endorsement in response to federal law.

ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED.

CPR 2257
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Policy Number: MCP0140064

Mt. Hawley Insurance

Company

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

FLORIDA CHANGES
This endorsement modifies insurance

-

CANCELLATION AND NONRENEWAL
under the

provided

following:

BOILER AND MACHINERY COVERAGE PART CAPITAL ASSETS PROGRAM (OUTPUT POLICY) COVERAGE PART COMMERCIAL INLAND MARINE COVERAGE PART COMMERCIAL PROPERTY COVERAGE PART CRIME AND FIDELITY COVERAGE PART FARM COVERAGE PART
2. of the Cancellation Common

A.

Paragraph
Condition is
2.

Policy
Or

(2)

replaced

by the

following: Days

Cancellation For Policies In Effect 90 Less
a.

less,

policy has been in effect for 90 days or may cancel this policy by mailing or delivering to the first Named Insured written notice of cancellation, accompanied by the specific reasons for cancellation, at least:
we

If this

On the basis of filing of claims for partial loss caused by sinkhole damage, regardless of whether this policy has been the subject of a sinkhole claim, or on the basis of the risk associated with the occurrence of such a claim. However, we may cancel this policy if:

(a)

The total of such property insurance claim payments for this policy exceeds the current policy limits of coverage for property damage; or You have failed to repair the structure in accordance with the engineering recommendations upon which any loss payment or policy proceeds were

(1)

10 days before the effective date of cancellation if we cancel for nonpayment of

(b)

premium;

or

(2)

20 days before the effective date of cancellation if we cancel for any other reason, except we may cancel immediately if there has been:

based.
B. The

following is added Policy Condition:
Than 90

to the Cancellation Common

(a)

A matorial misstatement

or

misrepre7.

sentation;

or

Cancellation For Policies In Effect For More

Days

(b)

A failure to

comply with underwriting requirements established by the

a.

insurer.
b.

If this policy has been in effect for more than 90 days, we may cancel this policy only for one or more of the following reasons:

We may not cancel:

(1) Nonpayment of premium;
(1)
On the basis of property insurance claims that are the result of an act of God, unless we can demonstrate, by claims frequency or otherwise, that you have failed to take
as requestprevent recurrence of damage to the insured property; or

(2)

The

policy

was

obtained

by

a

material

misstatement;

action reasonably necessary

ed

by

us

to

(3) There has been a failure to comply with underwriting requirements established by the insurer within 90 days of the effective
date of coverage;

IL 02 55 07 02

© ISO Properties, Inc., 2001
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(4) There has been a substantial change in the risk covered by the policy;

(a)

(5)

The cancellation is for all insureds under such policies for a given class of

Cancellation is for one or more of the reasons stated in 7.a.(2) through 7.a.(7) above; and This

(b)
C.

policy

covers a

residential struc-

insureds;

ture or its contents.

(6)

On the basis of property insurance claims that are the result of an act of God, if we can demonstrate, by claims frequency or otherwise, that you have failed to take action reasonably necessary as requested by us to prevent recurrence of damage to the insured property; or

The following is added:

NONRENEWAL
1.

If we decide not to renew this policy we will mail or deliver to the first Named Insured written notice of nonrenewal, accompanied by the specific reason for nonrenewal, at least:
a.

(7) On the basis of filing of claims for partial loss caused by sinkhole damage, or on
the basis of the risk associated with the occurrence of such a claim, if:

90 days prior to the expiration of the policy if this policy covers a residential structure or its

contents;
b.

or

(a) The

property insurance claim payments for this policy exceeds the current policy limits of cmerage for property damage; or

total of such

45 days all other

prior to the expiration policies.

of the

policy

for

2.

Any notice

(b)

You have failed to repair the structure in accordance with the engineering recommendations upon which any loss payment or policy proceeds were based.

of nonrenewal will be mailed or delivered to the first Named Insured's last mailing address known to us. If notice is mailed, proof of mailing will be sufficient proof of notice.
renew

3.

We may not refuse to
a.

this

policy:

b.

If

we

cancel this

policy

for any of these

rea-

sons, we will mail or deliver to the first Named

Insured written notice of cancellation,

accom-

panied by (1)

the

specific

reasons

for cancella-

On the basis of property insurance claims that are the result of an act of God, unless we can demonstrate, by claims frequency or otherwise, that you have failed to take action reasonably necessary as requested by us to prevent recurrence of damage to the insured

tion, at least:
10 days before the effective date of cancollation if cancellation is for nonpayment of premium; or 45 days before the effective date of cellation if:
can-

property;
b.

or

(2)

On the basis of filing of claims for partial loss caused by sinkhole damage, regardless of whether this policy has been the subject of a sinkhole claim, or on the basis of the risk associated with the occurrence of such a claim. However, we may refuse to renew this policy if:

(a)

Cancellation is for one or more of the stated in 7.a.(2) through 7.a.(7) above; and
reasons

(b)
(3)

This policy does not cover tial structure or its contents;

a

residen-

(1) The total of such property insurance claim payments for this policy exceeds the current policy limits of coverage for property damage; or
(2) You have failed
to repair the structure in accordance with the engineering recommendations upon which any loss payment or policy proceeds were based.

or

90 days before the effective date of cellation if:

can-

IL 02 55 07 02

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Policy Number: MCP0140064
Mt.

Hawley

Insurance

Company

Peoria, Illinois 61615
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

SERVICE OF SUIT ENDORSEMENT
It is understood and agreed that in the event of the failure of the Company to pay any amount claimed to be due hereunder, the Company, at the request of the Named Insured, will submit to the jurisdiction of a court of competent jurisdiction within the United States of America. The foregoing shall not constitute a waiver of the right of the Company to remove, remand or transfer such suit to any other court of competent jurisdiction in accordance with the applicable statutes of the state or United States per-tinent hereto. In any suit instituted against them upon this contract, the Company will abide by the final decision of such court or of any appellate court in the event of an appeal. It is further agreed that service of process In such suit may be made upon the Superintendent, Commissioner, or Director or other person specified for that purpose in the statute or his successor or successors in office as their true and law-ful attorney upon whom may be served any lawful process in any action, suit, or proceeding instituted by or on behalf of the Named Insured or any beneficiary hereunder arising out of this contract of insurance. The Company hereby designates Michael J. Stone, President,
of Insurance

Mt.

Hawley Insurance Company

9025 N. Lindbergh Drive, Peoria, Illinois 61615 as the person to whom the said Superintendent, Commissioner, or Director of Insurance is authorized to mail such process or a true copy thereof, in compliance with the applicable statutes governing said service of process in the state or jurisdiction in which a cause of action under this contract of insurance arises.

ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED.

RIL 099
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Policy Number: MCP0140064

NOTICE TO OUR BROKERS AND AGENTS OF OUR CLAIM NOTIFICATION PROCEDURE

As part of our continuing effort to provide you with the best service available, ALL CLAIMS under this policy are to be reported immediately to:

Mt.

Hawley Insurance Company 9025 N. Lindbergh Drive
Peoria, IL 61615
Phone: Fax:

(800) 444-0406 (309) 692-6796

Non-business Hours

Emergency

Phone:

(800)

281-3580

R1L 2108

(05/99)
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EXHIBIT

104 of 109

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Document 1-2
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E0erAoop Fb5p Docket 05/15/2009
-‘

Pag-

A

0

.f 50

)

. .

Policy Declarations
Renewal of: NEW

.1

IL

T}A

Policy No.

D35910177 001

NAMED INSURED & MAILING ADDRESS
El Ad Residences at Miramar 2480 West Preserve Way Miramar FL 33025

30LICY PERIOD Vhen Coverage Begins:
Vhen Coverage Ends:

09/07/2005
09/07/2006

12:01 A. M. Standard Time At Named Insured's Address
12:01 A. M. Standard Time At Named Insured's Address

INSURING COMPANY

Producer's Name & Address: SWETT & CRAWFORD CORP
2 WALL STREET 10TH FLOOR NEW YORK NY 10005

Westchester Surplus Lines Insurance Company

Producer No: 65431W

THIS INSURANCE IS ISSUED PURSUANT TO THE FLORIDA SURPLUS LINES LAW. PERSONS INSURED BY SURPLUS LINES CARRIERS DO NOT HAVE THE PROTECTION OF THE FLORIDA INSURANCE GUARANTY ACT TO THE EXTENT OF ANY RIGHT OF RECOVERY FOR THE OBLIGATION OF AN INSOLVENT UNLICENSED INSURER.

Cc3 [ 11 1 Ta
MAY 12 2008

ATTACHED FORMS This policy is completed by the following: BB-5W58a (05/98) and forms and endorsements attached thereto.

Authorization Information

Countersigned by:

NO FLATCANCE_

I

-

I

hete,
SLPD

(4/03)

105 of 109

EXHIBIT "B"

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)

Common Policy Declarations
Company Name:
SYM: FS

ACE USA,

Westchester Surplus Lines Insurance

Company
Producer's Name & Address
SWETT & CRAWFORD CORP
2 WALL STREET

Policy ID: D35910177 001 Named Insured & Mailing Address
El Ad Residences at Miramar 2480 West Preserve Way Miramar FL 33025

10TH FLOOR NEW YORK NY 10005

65431W-NEW

General Policy information

Policy Period:
Business Description:
When When

12 months

Condominiums
12:01 A.M. Standard Time at Named Insured's Address
12:01 A.M. Standard Time at Named Insured's Address

Coverage Begins: 09/07/2005
Coverage Ends:
09/07/2006

In return for the payment of the premium, and subject to all the terms of this agree with you to provide the insurance as stated in this

policy, we

policy.

The premium for this policy is indicated below next to the applicable

Coverage Form(s).
Premium

Coverage Form
Commercial Property Excess Manuscript Coverage Part

55, 000.00

Total Premium:

$ $

55, 000.00
13, 750.00

Minimum Earned Premium:

Attached Forms information

See Forms Schedule CPfs2

Authorization Information

Countersigned
Date:

At: 10/25/2005

Authorized Agent:

JS/pgm

Page

1 of 1

Form BB-5W58a (12/95)
106 of 109

to form

These Declarations together with the Coverage Declarations, Common Policy Conditions and Coverage Conditions (if applicable), Coverage Form(s) and Forms and Endorsements, if any, issued
a

part thereof, complete

the above numbered

policy.

Case 0:09-cv-60723-AJ

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)
ITEM
1.

)

EXCESS SCHEDULE & MANUSCRIPT FORM

TITLE OF ASSURED:

El Ad Residences at Miramar

(See ACE "A")
2.

ADDRESS OF ASSURED:

2480 West Preserve Miramar FL 33025

Way

3.

PERILS COVERED:

Risks of direct physical loss or damage excluding Earthquake and Flood and Earthquake Sprinkler

Leakage per Primary Policy (Mt. Hawley insurance Company Policy No. MCP0140064) and forms and endorsements attached to this policy.
4.

PROPERTY INSURED:

Buildings, Business

Personal

Property,

Business Income

including Extra Expense and Rental Value per Primary Policy (Mt. Hawley Insurance Company Policy No. MCP0140064) and schedule on file with Westchester Surplus Lines Insurance Company Policy No.
035910177 001.
5,

PERIOD OF INSURANCE:

09/07/2005 To 09/07/2006

6.

PREMIUM:

$55, 000.00 subject to a minimum earned amount of $13, 750.00.

premium

in the

7.

PRIMARY

INSURER(S):

I)

Mt. Hawley insurance Company Policy No. MCP0140064

8.

(A) PRIMARY LIMITS:

$2, 000, 000 per occurrence and in the annual aggregate as respects Windstorm

(B) UNDERLYING

DEDUCTIBLES:

ALL PERILS EXCEPT:

$10, 000 per occurrence
N/A N/A
3% per

EARTHQUAKE: FLOOD:
WINDSTORM:

building for windstorm

9.

EXCESS INSURER:

Westchester Surplus Lines Insurance Policy No. D35910177 001

Company

ACE092 (05-99)

107 of 109

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)
EXCESS 'LIMITS:

$8, 000, 000 per occur
occurrence exce
^

ce excess of $2, 000, 000 per '.500, 000 p:r occurrence and In the annual aggregate as: • -c Windstorm excess of $2, 000, 000 per occurrence and In the annual aggregate

as

respects Windstorm

11.

NOTIFICATION OF CLAIMS TO:

ACE Westchester Specialty Post Office Box 100008 Roswell, GA 30077

Group

ACE092 (05-99)

108 of 109

09-607e2a0C41164ORRANUMGALII-EY. Entered on
c.JS 44

FLSD Docket 05/15/2009

ELECTRD NIC

FIP-45W5016,350

(Rev. 2/08)

CIVIL" COVER SHEET

The JS 44 civil cover sheet and the information contained herein neither replace nor supplement the filing and service of pleadings or other papers as r for the use of the Clerk szi is by local rules of court. This form, approved by the Judicial Conference of the United States in September 1974, required NOTICE: Attorneys MUST Indicate All Re-filed C the civil docket sheet. (SEE INSTRUCTIONS ON THE REVERSE OF THE FORM.)

May 15,
F

2009
'

I.

(a) PLAINTIFFS

DEFENDANTS

EL-AD RESIDENCES AT MIRAMAR CONDOMINIUM ASSOCIATION, INC.

MT. HAWLEY INSURANCE SURPLUS LINES INSURANCE COMPANY

COMPANI—

S,-11EVEN1' M. &RI MORE (CA R K U.S. WIN CT op?, 0 Fa Fj....A.

(b) County of Residence of First Listed
(EXCEPT

Plaintiff

BROWARD
CASES)

County of Residence
NOTE.

of First Listed Defendant
(IN U.S. PLAINTIFF CASES ONLY)

IN U.S. PLAINTIFF

(C) Attorney's (Firm Name, Address, and

Telephone Number)

IN LAND CONDEMNATION CASES, USE THE LOCATION OF THE TRACT LAND INVOLVED.

Daniel S. Rosenbaum, Esq., Katzman Garfinkel Rosenbaum 250 Australian Ave. S., Ste 500, West Palm Beach, FL 33401

Attorneys (If Known)

(561) 653-2900; drosenbaum@kgrlawfirm.com
(d) Check

County

Where Action Arose:

0 MIAMI- DADE

0 MONROE

16

BROWARD

0

PALM BEACH

0 MARTIN

0 ST. LUCIE

0 INDIAN RIVER

0 OKEECHOBEE

HIGHLANDS

II. BASIS OF JURISDICTION
0 I

(Place

an

"X" in One Box

Only)

III. CITIZENSHIP OF PRINCIPAL PARTIES(Place an
(For Diversity
Cases

"X" in One Box for Plaintiff

Only)
PTF DEF

and One Box for Defendant) PTF
DEF 0 4

U.S. Government Plaintiff

0

3

Federal

Question
a

(U.S. Government Not

Party)

Citizen of This State

cif
0

1

0

I

Incorporated

or

Principal

Place

46
0

4

of Business In This State

0

2

U.S. Government

/3

4

Diversity (Indicate Citizenship
of
arties in Item

Citizen of Another State

2,t1

2

Incorporated

and

Principal Place

5

l0
0

5

Defendant

of Business In Another State

III)
Citizen
or

4,47 CV 407a3
I
0
0 0

AtS Coinin
TORTS PERSONAL INJURY
0 362 Personal

Subject

of a

0

3

0

3

Foreign Nation

o

6

6

Foreign Country
OTHER STATUTES 0 0 3
0

CONTRACT

FORFEITURE/PENALTY
0 3
0 610

BANKRUPTCY 0 422

I

g 110 Insurance
120 Marine
130 Miller Act 140

PERSONAL INJURY 3 310 0 315
Instrument 0

Agriculture
Seizure USC 881

Appeal 28

USC 158

400 State

Reapportionment
Banking

Negotiable

0
0 0

150 Recovery of Overpayment
& Enforcement 151 Medicare Act 152 Recovery of Defaulted

Airplane Airplane Product Liability 320 Assault, Libel &
Slander

Med.
0

Injury Malpractice

-

620 Other Food & Drug 625

0 423 Withdrawal 28 USC 157

410 Antitrust

365 Personal

Injury Product Liability

-

0 0

Drug Related of Property 21 630 Liquor Laws
640 R.R. & Truck

430 Banks and
450 Commerce 460

I
0 0 0

PROPERTY RIGHTS
820

3
0

Deportation
Corrupt Organizations

ofludgment

0

368 Asbestos Personal

Copyrights

470 Racketeer Influenced and
480 Consumer Credit

0 330 Federal

Employers'

Liability
0 340 Marine
0 345 Marine Product 0

Injury Product Liability
PERSONAL PROPERTY
370 Other Fraud

0 0
0

650 Airline 660

Student Loans

Regs. Occupational Safety/Health
LABOR

830 Patent 840 Trademark 0

3
0

490 Cable/Sat TV 810 Selective Service
850 Securitics/Commodities/

(Excl. Veterans) 0 153 Recovery of Overpayment
of Veteran's Benefits 0
0 0 0 160 Stockholders' Suits 190 Other Contract 195 Contract Product
196 Franchise

690 Other

Liability
0 350 Motor Vehicle 0 355 Motor Vehicle Product

0
0

371 Truth in Lending
380 Other Personal

I
0 Act

SOCIAL SECURITY

0 0

710 Fair Labor Standards

Liability

0

Liability

0 360 Other Personal

Property Damage 385 Property Damage Product Liability

0 0 0 0
0

720 Labor/Mgmt. Relations
730

(1395ff) Lung (923) 0 863 DIWC/DIWW (405(g))
0 861 HIA

Exchange
875 Customer
12 USC

0 862 Black
0 0

Challenge

3410

Labor/Mgmt.Reporting
& Disclosure Act

864 SS1D Title XVI 865 RSI

0 0 0

890 Other 891

Statutory Actions
Acts

Injury
CIVIL RIGHTS 0 441
0 442 0 443

(405(g))

Agricultural

I
0
0

REAL PROPERTY

PRISONER PETITIONS 0 510 Motions to Vacate
Sentence 0 0
-

740

Railway Empl.

Labor Act

FEDERAL TAX SUITS
0

892 Economic Stabilization Act

0 210 Land Condemnation
220 Foreclosure 230 Rent Lease & 240 Torts to Land 245 Tort Product

Ejectment

Voting Employment Housing/

790 Other Labor 791 Act

Ret. Inc.

Litigation Security

3
0

Accommodations
D 444 Welfare 445 Amer.

Liability Property

Habeas Corpus: 530 General 535 Death Penalty 540 Mandamus & Other
550 Civil

(U.S. Plaintiff Defendant) Third Party 0 871 IRS
870 Taxes
or
---

0 0
0 0

893 Environmental Matters 894 Energy Allocation Act 895 Freedom of Information Act
900

26 USC 7609

I
0 0 0

I
.

IMMIGRATION

Appeal

of Fee Determination
to

0 290 All Other Real

0 0

w/Disabilities w/Disabilities

Employment
446 Amer.
-

0 0 0

462 Naturalization

Under Equal Access

Justice

Application
463 Habeas Detainee

Other

Rights

Corpus-Alien
0

0 440 Other Civil

Rights

555 Prison Condition

465 Other
Actions

Immigration

950

Constitutionality of State

Statutes

V. ORIGIN ill 1 Original

(Place

an

"X" in One Box

Only)

0 2

Proceeding

Removed from State Court

Cl 3

Re-filed(see VI below)

n

4

Reinstated or

n

-

s

Reopened

Transferred from another district

CI 6 Multidistrict

0 7

Ikuprefro

alto District

(specify)

Litigation

Maistratine
Judgment

a)
VI. RELATED/RE-FILED

Re-filed Case 0 YES,p NO

b) Related Cases 0 YES 7 NO
DOCKET NUMBER

CASE(S).

(See instructions second page):

JUDGE
are

Cite the U.S. Civil Statute under which you

filing

and Write

a

Brief Statement of Cause (Do not cite

jurisdictional statutes

unless

diversity):
VII. CAUSE OF ACTION 28 USC 1332. There is
LENGTH OF TRIAL via 10

complete diversity of citizenship and the amount in controversy exceeds exclusive of interest. costs and attorney's fees.
days estimated (for both
sides to try entire

$75, 000
CI complaint:
0
No

case)
CHECK YES

VIII.

REQUESTED
COMPLAINT:

IN

0

CHECK IF THIS IS A CLASS ACTION UNDER F.R.C.P. 23
SIGN

DEMAND $

only

if demanded in

JURY DEMAND:
'
'

4 9

Yes

.....-----,

ABOVE INFORMATION IS TRUE & CORRECT TO THE BEST OF MY KNOWLEDGE

IIIII6....
109 of 109,

PA

ATU k

•F ATTORNEY OF

CORD
•••^••^.-

DATE

I
zmuri......
.

May 14,

2009

V"11111111111^Y ONLRECEIPT
AMOUNT

:

0

FIC

USE

#