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HomeMy WebLinkAbout96-05864 . 71.0 (rl', 'i S ~ '/ CUd ru.- REPOIlT . ZDRDOCT USER 10. HOB .. . . Flrlt Judlclll Dlltrlet Civil Dockll Report CASE ID 94D7023SD PAGE I RUN DAlE 10/15/96 RUN TIHE 10.29 AM CASE HUMBER CASE CAPTION FILIHO DATE QQY!! ~ ~ 1m llJllI _.....~............. ............................................................... ..... ..... 940702380 FREY, ETAL VS. LITITZ MUTUAL INS CD. CASE TYPE. CONTRACTS OlHER mI!I!l. IlAITlNG TO LlIl CASE HGMT CON 21 -JUL'I994 SE CH J !!9..l AlBae bon Date 1m JR. . Party NM'llI Addr... & Phone No. 2 PLF 11427792 FREY, JESSE L 306 E. GARFIELD ST. PI NOLA PA 17257 2 APLF A36471 ALEX ION, ARTHUR S 1700 SANSOM 51. 10TlI FL. PHILADELPHIA PA 19103 (ODD) 3 4 PLF ji7793 HILL, c. L 306 E. GARfiELD ST. PINOLA PA 17257 4 3 APLF A47081 CASPER, ALAN H 1700 SAHSOM ST. " 10TH FLOOR I, . PHILADELPHIA PA 19103 (000)994-1517 5 7 OFT 114~7794 LITIT2 MUTUAL INSURANCE COMPANY 2 NORTN BROAD ST. POPLAR GROVE PA 17543 6 5 13-NOV'95 AD" A58500 JOSEPH, ARNOLD C 1900 HARKET ST. THE AlRIUM, 3RD fL. PHILADELPHIA PA 19103 (ODD )665 - 2n6 7 5 AD" A40347 RICHES, JOSEPH N 1900 HARKET ST, 3RO fL PHILADELPHIA PA 19103 (000)665-2018 fllln.Dltl Tlmo Docket Entrv 21-JUL-I994 16.22.00 I,CTlVE CASE - '. JOSEPH H. RICHES, ESQUIRE I.e. No. ~ ~O'JtJ Cozen and 0' Connor , 1900 Market Street Philadelphia, PA 19103 (215) 665-2018 ," ~ , I: (: :',', '. I , , ~ I. . , : ~ ". 'j,' ,', "'//1 Attorney'fJr Defendant JESSE L. FREY & C. LEWIS HILL, t/a BEEDLE'S FLOWERS, Plaintiffs COURT OF COMMON PLEAS PHILADELPHIA COUNTY CIVIL ACTION v. .JULY TERM, NO. 2380 1994 .>" Qi!: ,.~/Il ""<). ~ o .", ,f' ~ <::::. .~ /j .~ 0' Q:f LITITZ MUTUAL INSURANCE COMPANY, Defendant. WITHDRAWAL OF APPEARANCE TO THE PROTHONOTARY: KINDLY withdraw my appearance on behalf of the Defendant in the above-captioned matter. rQl /~) '7 ENTRY OF APPE TO THE PROTHONOTARY: Kindly enter my appearance on betalf of the Defendant in the above-captioned matter. COZEN AND O'CONNOR ], BY:~L(1i! // "c. .('..-("C~, ~~h H. Riches, Esquire 'I . . Court of Common Pleas of Philadelphia County 'OIptt-..-A.. UN OnIrlo.a.t......, , Tria! Division ,IULY1994 Civil Cover Sheet ",'''-:>~~n ~.,"....... OC'IflCIANrllU.IitI Jesse L. Frey and C.Lewis Hill, t/a Lititz Mutual Insurance Company Beedle's Flowers ......UHl.,..AOOf'... C.,'HQA.Iil'...OO.... 306 E. Garfield Street 2 North Broad Street Shippensburg, PA 17257 Lititz, PA 17543 lJlA,u"!l"" NoMII 01'''.0''''''",.", ftU..."",. AOOf'I" D.'.~o",.r..oo~... TO"''' JIlU...... 01' ftU.Hrl',. UII Tor.",.o 0' 01'"'014''''' 1"1 (DU"'He'VIJ" ~ OTHIIIl ACllON 0' 010. IaF........... 2 1 0, c....._ """"- OJ. 1..., 011. y""".e..Odlof_ .tMOtMf.. CONfJIIOYIJII't [Jl W..oIs...... 0., N..lwyal!'l"ily 0 11. ~"-_i. @ 10. SlO.DOO.OO.... rn]Z, ...- lIIot~.............-d 0'_01_ IR: OwAaim oll,__ ]I. fo/......SIO,OOOOO o ll. ............ oIdom....bunn...._ O. P.......A_ 5&""n Acnorw F1;. WmnIftdDlchActM:II(lnYOMftllllilwn) AC,"~CW CAU" 01' ACTION Df.'IMJAHf IH'DItYArlOH o 40, .......... i. Plul>dd",", C_ O SO. A!I.(lIJdIIIotl"rIlidcattol(orblWoI!kctl.)PtuI~Couacy r 41. AcQoadldDOl....UlPflilldcJ~.Cwnry o '1. MII.dIIrcadanlll.tn&dmlol(CI'huomCA~)PbiIIdlIpWCOWIIy (JIQU t'llDOIIjorfl/"".'IOIIIfII'''''adllpltld C(llUIIVbtIQ... ,(,4J tf'l. AJldd'CDdl&ulttplart),~buuUI..~Cowuy(..butl1lC'IOIt"J ~ 41. ~CI'OCC&ImIaIl"""rlIIlOlCtIoa.....1D P'tull6tlpbaaCo&.uy ll, Mudof..____..........c-.,I_buuwl_FJ .0, T~CI'QCQII.-ct Ii....... 10 lIC::tJm dMi ItOC In". PhlIadeJplQc.c.ry o l4. Do{Oldoaa.....midooa..,(Dldo...__ioo)PlliIadol....~ (ducfIH I1'afUIllnIGfl tw<<nll"rY1tCl Hid." lit 'dO) (JIllI' 6,/ow.. _60 ",cuClltfwflllltf<<'." 'Ju'a/pNdCOIlllf)J 0110, I COD' IlIUWI... AHD n,. 01' ,f,CTfDN'S"/It"'""", ell ~",,-'t"Od. 1'20000 .'..TUTO.......".....O'- CAU" QlIACTIDHtl""'"rwDMM, t+;l PI) C S ~~:iP;;l\ IllILATlO 'tHO IlliG CA'I' (UIIt It 0Mhf.......... I".,.." -.,,.., /,.. "~tIH CU" In.. ..." e...._...' ND'->- ....... Of' .......IHT.'............LLAHr. AnOIllNIY ADDIIIISI(h,.".trwr_JI P.O. Box 7a6 Arthur S. Alexion, Esq. 222 South Easton Roa , Suite 216 Glenside, PA 19038-0736 ~NUIIl"1lI SVPIII!", COUlIIl ID(HTI'lCA tlCH NO 215-884-5828 36471 I""'~ 0.'" C d ~ ~ July 21, 1994 .€'":--- \ ForollfcllJlu..on/y ITA"'" 'll:IAC.LII' IoII1T COUIII' 'CnoN o 1001 Oe_ D 1010 Mlo.Ion o 1101 Al1llll1llonlfclrinl [1 1102 SctIlcnm Cali:raa 0 1011 lwy 0oll: 0 II OJ 1......,..r1aI 0 1012 Non.lwy l1me: 0 II (W S..,.. C<lntamc:o "LlNO,., 0 lOll AI"'<lrruAppalJ Asbilndon CtnlCf 0 II 01 Olbcr 0 1014 MISSTon IlOOCllClln..S.... Oat.: 0 1011 Other 2CIh floor Time: P!lIIodclphl, PA 1910J Pllct: I 01-10' . .... Instructions for Complelin~CivU Cover Sheet rtulldelphll Civil Rul' No .!flj 2(A)(IJ) reiluIICllhillll'fIICu.-er ~hUl be .&Iu,hcll hi .In) lhh;umenl ,ommencm. l"a'llon (whelherthc I"lon is commenced by Complllnl. Writ o(Summun" Nullcc o( Appell, or by PCllllUn) The mrlllm,lIltln leiluelled II nueu.ry 10 allow Ihe Coun to Droperly monitor. control and dllpole uln m.d. A copy o(lh. CIvil Co.-er Sheel mull be 'Il.chell fl. ur'/II;' CUplCl ollhc I,!lleumenl commenclnl an "Iilln The Inam.y (or non-represented party) nlinl a ~I" ,hili cumplelC Ihe (orm IS (ulluw, ,\. Plrlln I'fiJ"ff,dIlDtft"JiJltfJ Enler n.mnCI.t1, flnt, mllllllc 1I1111alllll rloilOllll' oind Jlflcnll.alll IIlhc ploilnlllfm delenllanlll. IUHrnmenl alcne)' or torpurallon, Ult the (ull nam,ohhc I.en,y or curpofllllln In the nenllhere.arc mur" Ih.n t....o pl.amllfls anll/or I~o Ildcnlllnll,lnt Ihe a~dilionll pallln on the Supplemental Panle. Fonn Ilu,blnd ..nli WI(. oUt 10 h.lhled II ,clurale JliIrl1C1 II I'll""" .4JdflulJ I:nler Ih. IJdlulollhe par1ln "llhe lime 01 fIIina Ilflhc ,"lIun If allY JW1)''' .Icorpllralwn cnler Ihe addreu u(lhe rClllllcrc.Jofncc or\l11 corporlllon, ." ,Vllmb" 01 Pfa""fl/,IV,/,,.JiJnlJ Indlclle \I1e 10111 number at pllinlll" .U1tJ IJlal numbel illllc:l'c"Ido1nU In Ihe iI\;llllA (J( coune. addillon.1 p.nies ml)' be n.amed lalcr IS I rnull 1)( joinder or UlhcI"'isl. B. Commuu.... o( Aulaa Indlclle Iype o( documenl nted 10 commence the aclion C. Olbrr Indicat. whe\l1er th. CUI is an a.bitrlllon, JUry or non-jury Ind equity clle. In the event I jury lti.1 is requesled.lhe appropriate fees must be plld IS rrovided by rule. o( coun. Check any other approprilte bo~e" Irthe I(;lion will require the entry or an Order .pprovinlaminorlincapacltatcd person'. compromises, wronarul death or sunivllactlon. check the appropuate bo~. D. .\mounlln Coneronny Check the appropriate boll. Indicate whether an Aucument 01 OillT\"cs lleaung IS requned, E. Accrual orCau.. or Aellon Check lhe appropriale bOlt 10 indicate where Ihe c:luse oraCllon or Ihe Iflnsacllon oroccurrcncc living rise 10 the cause or action II'OS'. In the evenl the transaction or occunencc livin. rile to Ihe: lelion did ROlallSe in Philadelphia County, sel (orth the nature: ofthe uanslcllon oroccumnu and Indicate In'6O why Ibe action wu 111ed in PhiladclphlaCounlY. r. Dc(cadlnlla(ormllloll Indic.ue: the appropriate response. Check only one, 1("') or -~.. are checked. the c:omplaint musl spccitic:ally Sel (onh lhe nature orlhe bUliness c:onducted In rhiladclphiaCouncy. G. Type or Acl10m Inscrtlhe code number and type oraclion by consulllng the list set (or\l1 hereunder. Choose only one, Notice or Appeal Complainllndlor \\o'rit orSummons Complaint Indlor Writ o(Summoa. .??oo Mwuapll Cour1 ~ Landlord and Tenant :??oo Coo"'" 26031 lmpl.U lUIUI:. 10100 MunKlpII Cowt ~ "'uiunce CaM A~ 200)~ CarutI'UI;tlan Conlnd lOOll ........ 10'00 MunlClpa.! CoUlt ~ Money Judjpllmll ~OO25 Ocdnaory Judi"'cnl AtbOll lOOn DES 0".....-.1) 10HO MUlllapal Coun ~ DmiallO Open Judl1l'cnt :00'0 City Tu C.ue 260SI MoI~ 11000 MuniCipal Coun - CodI Enfamncn1 21000 EJtctmcnl 260'1 MoI..-...,& 12000 MoIorVducltAppcab ~I'OO E4Ulty\NoRu.lE.lt.&l.1 ~60S3 M..I........tlm.. 0010 Baud of IlevlIion of T.u.cs" Do.d ofVicw :1310 EqultylRulESla!cl 260'0 MalpncawMiICclllno:us ""'" T.u. RcvIC\/II 80"" ::900 MM1rIl,sLu:n 26060 Llbd IDd SlaDda I~Oro Ci\ll ScmccCommllSlon 2Jooo M""""'''' lbnl Toxic: W... r...._..._ md EAvironmcnr IlO" Do.-do(PauJDIU 13500 MOOI.II Forec:loun 21110 s.._..- tlO~O Boardofl.,m... and llupuuons ~~OOO PMUlIon 26070 Misc.dlaneoua 1\000 lornn, BoInJ of AdjumnenlJ :~~OO QlIlC1Tlll. Pellllon Acllons I ~010 Pmn.I)'lvaruauquarConlJoI Do.ard :mlO Rrplnln "000 Chanp or..,.. (Adult) ,- Other AdmwlfJW;l\'l A,cncy :??oo .\1ulorVchlcleAccldml ,moo Mmtal H_hbActPctitiou .- MiKellM\COUI Appeal :6010 OlhcrfralTle^ccuknl ""100 hUnan 10 A!'pollU Am~ :u120 l'fcmlinLIJblhty ~6500 Election M....cn :tJl)Jo r'f,-tuaLlwlhty ,moo lc.awloLulJISutJrooeu :uHI I.-To",,,,,,,," .1600 Pdltion 10 Compel Medial E.lIItllflltlOCl :1.00)2 I u,itfn,llon) ~9'OO fmlnml Oomaui .Dcd.ID~orT.UlI "l'lOO p..t1tceil..... II. Sllluldry HI,h rur ('I un Qr '\cllon Irlhe al.:tllln It \;lllnmen,eJ punuillIllll \1J1UhH\ Jlllhlllll~ I ~Pclilllln AdIUII"I. Ihe lPC\;IIic: \IJlule mUll tic IJcnl~l1ed. I. Ihlll,lI rrndll1l ('.,,, \11 pfeVIIIU\I)' IHeJ Id,lled ~'.I\':\ "HI\! he HJerlllfll:J hltl";IIC \\ helhcr 0111\0 tll!h~ r('IJleJ u.".. hJ...e lice" C:lln\lIIIJlIleJ by Order llfCuull or Stipulation by Ihe r,IIUe, J, 1"llnllfr,Jt\ppcllanl'. ,'lInr",y rhe lIi1mC 1'((11.11111111', ,tlllll'le)' t'lf the I1JlnC L'I Jl'pell.llll" o1llllrl1C'I It'llIc I'llllnls ~llmlllCnecJ h~ Ihe I\linl or In _rpeal (rnm I Jeeltlun of Municipal CUUr1 or an ,\,Jlllllll\trJII\I..! A~ell~)') 11I11\1 be 1I1\ellell huelll hlllelh"1 "11h lllhcr U~lt\lIICJ Inlt'lm.1IIUn In Ihe e\Cnllhe filer II nlll fcprnenled by '''I IlIomey,lhe n.me or Ihe Iiler. .lIhIlCH. Ihe phunl: nUlIlhcr .md 11l!11.lluIC" I('llluc,t IIlhe Jd1LlR IS .a "Mini rllfl~. 1n\;lude Ihe Allntncy firm Nallle and Number /'lie arl'., b"'ull' "Fllr IIJJkialllIl' 1I11ly" is rl'Jul'l'dfur IISI' by the Cuurt .,I;lllfl....MI charged with the knowledge of Ihose laws and regulations as they reI ale to the adjustment of real and personal property firsl parly insurance claims. Facls 3. At all relevanllimes, plaintiffs were the insured of Lititz pursuant 10 a businessowners fire insurance policy number BOPOlO541 [hereinafter "the policy"], which policy of insurance provided a variely of coverages for the premises and its contents and was in full force and effecl from March 3, 1991 through March 3, 1994. A Irue and c<lrrecl copy of the aforesaid policy is attached herelo and incorporated herein as Exhibil "A. 4. Plainliffs had paid in full the premium due which defendant had requesled as paymenl for said insurance policy. 5. On or about July 21, 1992, the business owned by plaintiffs and insured by defendanl, was severely damaged by fire, a covered loss under the aforesaid policy. 6. The aforementioned policy specifically includes as named insureds . Jesse L. Frey & C'. Lewis Hill tla Beedles Flowers". The policy further provides thaI "If you are designaled in the Declarations as:...(b) A partnership or joinl venlure, you are an insured. Your members, your partners and their spouses are also insureds. bUI only wilh respect 10 the conduct of your business." 7. As Ihe insurer of Beedles Flowers, as well as Ihe individual parlners, Lititz had a fiduciar), conlractual and slatulory dUlies toward Ihese insureds 10 negotiate their claims in good faith in order 10 arrive at a prompl, fair and equitable senlement, 8. Shorlly after !be fire loss, plainliffs andlor others aCling on Iheir behalf, provided proml'l nOlification 10 Lilitz of the loss and delivered to Lilitz extensive claim documentation as required by the policy. 9. Plaintiffs complied wi!h the terms and condilions of Ihe subjecl policy and all condilions precedenl and subsequenllo Iheir right to recover under Ihe policy have been performed or have occurrea. Nevertheless, Lilitz has refused, without fair juslification or cause, and continues 10 refuse, to pay the company andlor individual partners, the monies due and owing for danlages ~\Iffered in the aforementioned loss. 10. As a resull of Ihe aforesaid loss, Ihe company andlor Ihe individual partners suffered a continuing business inlerruptiol1 loss and damages to Ihe building and to :he contents of the premises described above, II. Plaintiffs provided proofs of loss to defend anI on or about October 2, 1992. On or aboul February I, 1993 LililZ admilled Iiabilily after extensive invesligation. By June of 1993, however, the claim was slill not paid in full. 12. On or aboul June 30, 1993 LitilZ denied plainliffs' claims due to suspected arson and misrepresentation connected therewith by one of the partners, Jesse L. Frey. COUNT I C, LEWIS HILL tla BEEDLES FLOWERS v, lITITZ MUTUAL INSURANCE COMPANY BREACH OF CONTRACT - FIRST PARTY BENEFITS 13, Plaintiffs incorporate by reference paragraphs 1 Ihrough 12 of the Complaint as though Sl:l forlb at length herein. 14. C. Lewis Hill tla Beedles Flowers has salisfied all of hislit's obligalions under the polic} , including, bul nOllimiled to, ali conditions precedenl and all conditions subsequent. 15. As a matter uf law, defendant's reasons for denying coverage due 10 the suspecled unilateral acts of Jesse L. Frey do nOI enlille defendant to deny coverage to !he other named insureds, namely, Bccdles Flowers and C. Lewis Hill. To the eXlent policy provisions so provide those policy provisions arc contrary 10 law and public policy and are unconscionable 10 the eXlenl they violale plaintiffs slalulory and equitable rights. 16. By failing to make paymenl 10 C. Lewis Hili tla Beedles Flowers, litilZ breached it's contractual obligations under the policy. WHEREFORE, plainliff demands judgmenl in his favor and againsl defendanl and requests thc award of contractual damages, interesl, auorney's fees and such other relief as the Court deems just and proper. COUNT II C, LEWIS HILL tla BEEDLES FLOWERS V, lITITZ MUTUAL INSURANCE COMPANY BAD FAITH PURSUANT TO 42 Pa,C.S.A, 68371 17. Plaintiff incorporales by reference paragraphs 1 through 16 of the Complaint as though SI:1 forlb alleng!h herein. 18. For the reasons sel forlb below, LitilZ has violated the policy's implied covenant of good fai!h and fair dealing and further specitically violaled 42 Pa.C.S.A. 837!, for which Lititz is liable for intcrC.l1 on the claim from !he date the claim was made in an amounl equal to the prime rate of interest plus three percenl, court costs and attorneys' fees, punitive damages, and such other damagC.l as are permitted by law. The conducl of L1titz included, but is nOllimiled to, Ihe following: (a) failing to give equal consideration 10 payment as to non-paymenl of the claim; (b) failing 10 objectively and fairly evaluate the claims; (c) asserting policy defenscs without a fair and rcasonable basis undcr the law; (d) relying upon unduly reslriclive and self-serving policy inlerprelations as a prelcxlto deny coverage; (e) dilatory and abusive claims handling; (I) compelling the inslilulion of this Complainl in order 10 oblain policy bencfits thaI should have been paid promplly and wilhoul the necessily of Iiligation; (g) nOI attempting In good faith 10 effectuate a prompt, fair, and equilable settle of the plaintiffs' claims; and (11) otherwise unreasonably and unfairly withholding policy benefits juslly due and owing, 19. The aClions of defendant, Lilitz, as averred herein, were commllled In wanlon, malicious and/or reckless disregard of the rights of plaintiff, C. Lewis Hili tla Beedles Flowers, and without a reasonable basis, the lack of which reasonable basis defendant Lilitz knew or recklessly disregarded, thereby juslifylng an award of punilive damages. WHEREFORE, plaintiff, C. Lewis Hill, Individually and tla Beedles Flowers, demands judgmenl in his favor and agalnsl defend anI, Lilitz MUluallnsurance Company, and requests the award of compensalory, consequenlialand punitive damages from defendant Lititz, in an amounl in excess of Fifty Thousand Dollars ($50,000), plus interesl, costs, allorney's fees, and such other relief as this Court deems jusl and proper. ... ~... ~ "..1')' 1\1./1 /~ ..'/ C- 0 ~didz c/~h/lt Xdi/~'(7/ZCG (j(lJlY-k//fY DECLARATIONS LIT I T Z, P [N N 5 Y L V A N I ^ NO. BOP U 1 tJ!j 4 1 NEW This Oedaralions Pag' wilh Forms and EndOlsemenls 01. ......,.,......, lached compleles Ih, Policy indical.d below by Ihe lel1er X, o STANDARD FORM 1. Named Insured alld Mailing Address INo. SIIrtI. Town, CoonlV. S"" & lip COOtl JESSE L. FREY & C. LENIS UILL TIA BEEDLE'S FLOWERS )06 E. GARFIELD ST. SHIPPENSBURG, PENNSYLVANIA 2. Policy Period ) /) /91 I..,,~(.... [] SPECIAL FORM 17257 )/)/94 "~~th.~ Beginning ,nd ending 01 12m AM, Slandard Tim' 112:00 noon in Norlh Carolina, ami Virginia) al Ihe localion 01 Ih, described premises. 3. Th, Named Insured is: o Individual 0 Corporaliun 119 Parlnership 0 Olher: ISpftlly) 4. Morlgagees Nameand Address ORRSTOWN BANK, P ,a. BOX 60, SULPPENSBURG , PA 17257 BUSINESS DE SCRIP nON 5. Localion of Premises IEnlel .Sam,- II Mailing AdlJlm is also location 01 Plemins) [, "SAME" 2. 3. ITEM 6. FLORIST SIIOP ] BUILDINGS . Actua! Cash Value-Buildings Option . Automatic Increase - Building Limit (percent) BUSINESS PERSONAL PROPERTY DEDUCTIBLE $ 250. OPTIONAL COVERAGES Applicable only if an "X" i. shown In Ihe box(es) below: o Ouldoor Si ns 10 Exterior Grade Floor Glass o Burglary and Robbery (Slandard Form only) or 10 Money and Securities (Special Form only) o Em 10 ee Dishonest o Mechanical Breakdown o Other S ecil LIABILITY AND MEDICAL PAYMENTS COVERAGE Except for Fire Legal Liability, each paid claim 'or the following coverages reduces the amount of Insurance we provide during the applicable annual period. Please lefer 10 Paragraph 0.4. 01 the Businessowner's Liability Coverage Form. COVERAGES LIMITS OF INSURANCE Ui\BILlTY AND.f",if,OICALEXPENSES - ___H - -sl,006,060. MEDICAL EXPENSES --- S 5,000. FIRE LEGAL L1A-BllITY --- $50,000. ITEM 7. FORMS APPLICABLE (Show Numbers): BPUOO/90) BP0002(6/89) IN RETURN FOR THE PAYMENT OF THE PREMIUM, AND SUBJECT TO ALL THE TERMS OF THIS POLICY, WE AGREE WITH YOU TO PROVIDE THE INSURANCE AS STATED IN THIS POLICY, COVERAGES LIMITS OF INSURANCE PROPERTY Prem. No. Bldg. No. Prem. No. Bldg. No. Prem. No. Bldg. No. Prem. No. Bldg. No. 1 1 90 000. DYes IllI No 0 Yes 0 No 0 Yes 0 No 8 % % % $ 15 000. DYes ONo % $ $ $ $ Included $ 10,000. $ 2,000. LIMITS OF INSURANCE per occurrence Inside the Premises Outside the Premises $ Included er occurrence pcr person anyone fire or explosion Tolal Policy Premium Inslallment Premium $2,202. $ 7)/.. COlJntersigned: _____ Dale G. L. PA OOP.O (4.09) c BUSINESSOWNEflS BUSINESSOWNERS SPECIAL PROPERTY COVERAGE FORM Vario~s provisions in this policy reslrict coverage. Read the entire policy carefully to determine rights, duties and what Is and is not covered, Throughout this poticy the words 'you' and 'your' refer to Ihe Named Insured shown In the Declaralions, Tho words 'we: 'us' and 'our' refer to the Company providing this insurance, Other words and phrases that appear in quolalion marks have special meaning, Rofer to SECTION H - PROp. ERTY DEFINITIONS, A, 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 Property " .' Covered Property, as used in this policy, , mean. the following types of property for which a Limit of Insurance Is shown In the Declarations: a. Buildings. meaning the' buildings and structure. at the premises described In the Declarations, including: (1) Completod additions; (2) Permanently installed:'.,. (a) Fixtures; " ',i" (b) Machinery; and ' ". (e) Equipment;' (3) Your personal property In apartments or rooms furnished by you es landlord; (4) Outdoor fixtures; (6) Personal property owned by you that is used to maintain or service the buildings or slructures or the premises, including: (a) Fire extinguishing equipment; (b) Outdoor furniture; (c) Floor coverings; and (d) Appliances used for refrigerating, ventilaling, cooking, dishwashing or laundering; . , ,(6) If not covered by other Insurance: (a) Additions under construction. altor- alions and repairs to the buildings or structures; , (b) Materials, equipment, supplies and temporary structures. on or within 100 feet of the described premises, used for making additions, alter- ations or repairs to the buildings or Slructures, b, Business Personal Property located in or on the buildings at the described prem- Ises or In the open (or in a vehicle) within 100 feet of the described premises, in- cluding: (1 ),.Property you own that is used in your business; (2) Property of others that is In your care, custody or control, but this property is , not covered for. more than the amount for which you are legally tiable, plus the cost of labor. materials or services fur. , nlshed or nrranged by you on personat property of others; and (3) Tenant's .,Improvements and betterments, Improvements and betterments are fixtures, alterations, in- s.tallations or additions: (a). Made a port of the structure you occupy own; and (b) You acquired or made at your ex- pense but cannot legally remove. ," building or but do not i . Copyrighl, Insurance Services Qffice, Inc., 198-l, 198B Page 1 of 19. 0 B P 00 02 06 89 I' <1. For lo"s or damage by Iheh. Ihe following types of property are covered only up 10 the timits shown: (1) $2,500 for furs, fur garments end gar. ments trimmed wilh fur, (2) $2.500 for jewelry, watches. watch movements, jewels, pearls, precious and semi-precious stones, bullion, gold, silver. platinum and other pre- clousalloys or metals, This timlt does not apply to jewelry and walches worth $100 or less per item, (3) $2,500 for pallerns, dies, molds and .." forms, 1."5: Additional Coverages" a, Debris Removal (1) Wa will pay your expense to remove debris of Covered Proporty caused by or resulting from a Covered ,~ause of Loss that occurs during the poticy pe- riod, Tha expenses will be paid only it they are reported to us in writing within 1 BO days of the earlier of: (a) The date of direct physical loss or . , . damage; or . . .. (b) Tha end of the poticy period. (2) The most vite will pay under this Addl- ., . tlonal Cqverage Is 25% of: (a) The amount we, pay for the direct physical loss of or. dam&ga to Cov- ered Proporty; plus (b) Tha deductible In this policy appti. cable to that loss or damage. But this limitation does not appty to any additional debris removal limit pro- vldea'ln paragraph .(4) below, " .(3) This Additional Coverage does not ap- ply to costs to: '. (a) Extract "poll~'tants" from land or water; or , ... '(Ii) Remove, restore or replace polluted land or water: . ., t. l ;] SP 00 02 06 69 Copyright. Insurance Services Qffice, Inc., 19B4, 19BB Page 3 of 19. 0 I', ." (4) II: (a) The sum of direct physical loss or damage and debris removal expense exceeds the Limit of Insurance; or (b) The debris removal expense exceeds the amount payable under the 25% Debris Removal coverage timilation in paragraph (2) above; we will pay up to an addilional $5,000 for each location In anyone occurrence under the Debris Removal Additional Coverage, b, Preserva'tlon of Property II it is necassary 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 of or damage to that property: (1) While it Is being moved or while tem- porarily stored at another location; and (2) Only If the loss or damage occurs within 10 days after the property is first moved, c. 'Fire Department Service Charge .. When the fire department is called to save or protect Covered Property from a Cov. ered Cause of Loss. we will pay up to $1,000 for your tiabllity for fire department service charges: '. (1) Assumed by contract or ogroement prior to loss; or (2) Required by local ordinance, d..,Collapse .:. We will pay for los's or damage caused by . or resulting from risks of direct physical :".Ios. involving collapse of a building or any part of a building caused only by one or more of the following: , . (1) The. "speciflod causes of loss" or breakage of building glass, all only as insured against in this poticy; .; ! l' , I I i I \ f . e, Power Failure The lailure of power or other utility service supplied to the described premises, how; ever caused, il the lailure occurs away from the described premises" But illoss or damage by a Covered Cause 01 Loss results, we will pay lor that result. Ing loss or damage, . f. Wer and Military Action. (1) War, including undeclared or civil war; (2) Wartike action bya military loree, in. c1uding action In hindering or delend. ing against an actual or expected attack, by any government. sovereign or, other authority. using mititary per. sonnel or other agents; or (3) Insurrection, .rebellion, revolution, . usurped power, or action taken by governmental authority in hindering or . ". delending against any 01 these, . g. Water. ..': '.. (1), Flood, surlace waier,.waves, tides, tidal ...., waves, overflow 01 any body of water, or their spray, all wpether driven by .".", .." .,wl".d or,".ot; _..'1 1 h1 ..,..",(2), Mudslide or ll1uc,lflow; , ."1 ., (3).,Weter that. backs up.'rom a sewer or drain; or I I,..; '. .. .(4) Woterunder ttie' ground surface presS' ing on, or flowing or seeping through: .. '." (e) Foundations, walls.. floors or paved surfaces; ..'. ,. '.. ,.,,:" (b) Bi3sements,"whether "paved or not; , ....'... """01' :. L'", ',' " " 11 ,. "," (c) Doors, windows or other openings, 'But if loss or damage by lire, explosion or sprinklor leakage results. we will pay lor that resulting loss or damage:' . -,;,:1 L, ,', ,\a. \" . I ',' . ,I' 1.. , .,'; ;' ....... 2, We will not Jlay lor loss or damage caused by or resulting Irom any of Ihe lollowing: a. Electrical Apparatus: Artificially gener. ated electric current, Including electric arcing, that disturbs electrical devices, ep. ptiances or wires. But il loss or damage by lire results, we will pay lor that resulting loss ordamage, bi Consequential Losses: Delay. loss 01 use or loss 01 market. c. Smoke. Vapor, Gas: Smoke, vapor or gas Irom agricultural smudging or indus- trial operations, d, Maintenance.Types of Loss: (1) Wear and t~ar; (2) Rust, corrosion, lungus, decay, deterl- .1 oration, hidden or latent delect or any quality in property that causes it to damage or d~stroy itself; (3) Smog; (4) Settling, cracking, shrinking or expan- sion; ..: (6) Insects. birds, rodents or other animals; '..(6) Mechanical breakdown. inciuding rup- ture or bursting .caused by centrifugal ,'.., lorce; or (7) The lollowlng causes of toss to per- ... sonal property:. (a) Dampness or dryness 01 atmos- phere; , (b) Changes in or extremes .01 temper- . ature; or. (c) Marring or scratching. But II loss or damage by the 'specilied causes of loss' or building glass breakage . result., we will pay lor that resulting loss or damage. ,I' ' . " .. ~ J .' ." BP 00020689 Copyright, Insurance Services Office, ,Inc., 1984, 1988 Page 7 011.9 0 . i \ ( 1 4. Business Incomo and Extra Expense Ex- clusions, We will not pay for: a, Any Extra Expense. or increase Qf Busine~s " Income loss, caused by or resulting Irom: (1) Delay in rebuilding. repairing or replac- ing the property or resuming "oper. ations: due to interference at Ihe location of the rebuilding, repair or re- placement by strikers or other persons; or (2) Suspension, lapse or cancellalion of , any ticense, lease or contract. But if the suspension, lapse or cancellation is di- rectly caused by the suspension of .operatlons: we will cover such loss that affects your Business Income dur- . .;.,;,.,. Ing the.~llerlod of .restoration:. . b.. Any other consequential loss. C, LIMITS OF INSURANCE' . 1. The most wa will pay for loss or damage in anyone occurrence is the eppticable Limit of Insurance shown in the Declarations. 2. The most we will pay fo{loss of or damage to outdoor signs attached to buildings is $1,000 per sign In anyone occurrence, 3. The limits applicable to the Coverage Exten- . ,. ..slons and the Fire Department Service Charge , 1, and Pollutant Clean Uppand Removal Addi- ".,. tlonal Coverages are.in addition to the Limits of Insurance, ' . .. 4. Building Limit - Automatic Increase a, The limit of Insurance for Buitdings will . automatically Increase by the annual per. ; . centaga shown in the Dectarations, , ". "., , .b, The emount of increese will be: (1) The Building limit that applied on the most recent' of the poticy inception '., date, the policy anniversary date, or any other policy. change. amending the Building timit. times \ (2) The percenlage of annual increase shown in the Declaralions, exp,ossed as a doc;mal (example: 8% is .08), times (3) The number of days since the begin- ning of the current policy year of the effective dale of Ihe mo~t recent policy change amendinu the Building limit, divided by 365, Example: If: The appticable Building timit is $100,000. The annual percentage increase is 8%. The number of days since the beginninG of the policy year (or last policy change) is 146, The amount of increase is ' $100,000 x .08 x 146 + 365 = $3,200, . 6. Business Personel Property Limit - Sea. sonal Increase a, Tha Limit of Insuranca for Business Per- sonal Property will automatically increase by 26% to provide for seasonal variations. b. This Increase will apply only if the Limit of Insurance shown for Business Personal Property in the Declarations is at least 100% of your average monthly values dur- ". ing the lesser of: , (1) The 12 months immediately preceding . . , . the date the loss or damage occurs; or I ., ,.. (2) The period of time you have been in business as of tha date the. loss or damage occurs, D. DEDUCTIBLES 1. We will not pay for loss or damage In anyone occurrence until the amount of loss or damage exceeds the Deductible shown in the Decla- rations, We will then pay the amount of loss 'or damage in excess of the Deductible up to the applicable Limit of Insurance, 2. Regardless of the amount of the Deductibte. the most we will deduct from any loss or ,.,,". '''damage' under all of the following Optional Coverages in anyone occurrence is $260: a. Money and Securities; b. Employee DishoneslY; BP 00 02 06 89 Copyrighl, Insu.rance Services Qffice, Inc., 1984. 1988 Page 9 of 1 9 0 ( . 4, Legal Action Against Us No one may bring a legal action against us under this insurance unless: a. Thera has been full comptiance wilh all of Ihe lerms of this insurance; and b, The action is brought within 2 years aller the dale on which the direct physical loss or damage occurred, 6, Llmltetlon - Electronic Media and Re- cords We will not pay for any loss of Business In- come ceused by. direct physical loss of or . damage to Electronic Media and Records aller Ihe longer of: a, 60 consecutive days from the date of direct physical loss or damage; or b, The period, beginning with the date of di- rect physical loss or damage, necessary to repair, rebuild or replace with reasonable spoed and similar quality, olher property 'at the described premises due to loss or 1 damage caused by the same occurrence, Electronic Media and Records are: (1), EleCtronic data proce~sing, recording or storage media such as films, tapes. discs, drums or cells; . .. . ' .. I "" _ '(2) Data stored on such media; or (3) Programming records use. for electronic I ... .data processing or electronically controlled equipment. 1 I. Example No, 1: A Covered Cause of Loss damages a computer on June 1, It takes until September 1 to re- place the computer, and .until October 1 to restore the data that was lost when the dam- age occurred, We will only pay for the Busi- ness Income loss sustained during the period Juno 1 - September 1, Loss during the period " :,.1. -September 2. October 1.is not covered. . I ;, '. ' ,~ '. " I'. .: t ; . ..,; j,l 1, ..',';1' : f Example No.2: A Covered Causo of Loss results in Ihe loss of data processing programming records on August 1, The records are replaced on October 15. We will only pay for Ihe Business Income loss sustained during the period August 1 - September 29 (60 conseculive days), Loss during the period Seplember 30 - October 15 is not covered, 6, Loss Payment In the event of loss or damage covered by Ihis policy: e, At our option. we will either: (1) Pay the value of lost or damaged prop- erty; . (2) Pay the cost of repairing or replacing the lost or damaged property; (3) Take all or any part of the property at an agreed or appraised value; or (4) Repair. rebuild or replace the property with other property of like kind and quatity. b. We will give notice of our inlentlons within 30 days aller we receive the sworn state. ment of loss". c. We will not pay you more than your 11- nanclallnterest in the Covered Property, d, We will determine the value of Covered Property as follows: ',I.' , (1) At replacement cost. (without de- 01; ,.. duction for depreciation), except as provided in (2) through (7) below, (a) You may make a claim for loss or damage covered by this insurance on an actual cash value basis In- stead of. on a replacement cost ba- sis. In the event you elect to have loss or damage settled on an actual cash value basis, you may still make ", .,' a claim, on a replacement cost basis I if you notify us of your intent to do ,. so within 180 days aller the loss or damage. BP.OO 02.06 89 Copyright, IIIsurance Services Qffice, Inc.. 1984, .1988 Page 11 of ,19. 0 .. 0, Our payment for loss of or damage to per. sonal properly 01 olhers will only be for Ihe account of the owners of the properly. We may adjust losses wilh the owners of lost or damaged property if other than you. If we pay Ihe owners. such paymenls will satisfy your claims against us for the own. ers' property, We will not pay the owners more Ihan their financial inlerest in the Covered ProperlY. f, We may elect to defend you against suils arising from claims of owners of property. We will do this at our expense, g, We will pay for covered loss or damage within 30 days after we receive the sworn statement 01 loss, if: '. (1) You have complied with all of the terms of this poticy; and (2) (al We have reached agreement wilh you on the amount of loss; or (a) An appraisal award has been made. 7. Recovered Property If either you or we recover any property after loss settlement. that party must give the other prompt notice. At your option, you may retain the property, But then you must return to us the amount we paid to you for the property, We will pay recovery expenses and the ex- penses'to repair the recovered property. sub- ject to the Limit of Insurance. 8. Resumption of Operations We will reduce the amount of your: a, Business Income loss. olher than Extra Expense. to the extent you can resume your "operations: in whole or in part, by 'using damaged or undamaged property (including merchandise or stock) at the described premises or elsewhere, b, Extra Expense loss to the extent you can return "operations" to normal and discon- . tinue such Extra.Expense. " " , .,l I}'.. , ., ." .".,\,L'I 1,1. 'j.:'. ,"I' 9, Vacancy If the building where loss or damage occurs has been vacant for more Ihan 60 consecutive days bofore that loss or damage, we will: a, Not pay for any loss or damage caused by: (1) Vandatism; (2) Sprinkler leakage, unless you have protected Ihe system against Ireezing; (3) Building glass breakage; (4) Waler damage; (5) Theft; or (6) Attempted Thelt. . h. Reduce the amount we would olherwise pay for the loss or damage by 1 5%, A buildfng is vacant when it does not contain enough business personal property to conduct customary "operations." Buildings under construction are not consid- ered vacant. F. PROPERTY GENERAL CONDITIONS 1. Control of Property Any act or negtect of any person other than you beyond your direction or control will not affect this insurance, The breach of any condition of this Coverage Form at anyone or more locations will not . atrect coverage at any location where, at the time of loss or damage, the breach of condi- tion does not exist, 2,. Mortgage Holders a. The term "mortgage holder" includes trus- tee, b. We will pay for covered loss of or damage to buildings or structures to each mortgage holder shown in .the Declarations In their order of precedence. as interests may ap- pear, c. The mortgage holder has the right to re- ':. ceive loss payment even if Ihe mortgage holder has slarted foreclosure or similar action on the building or structure. .D BP 000206 89, Copyright, Insurance Services Qffice, Inc., 1984, 1988 Page,13 of 19 .0 '. 4.' I t I I , ,. c. We will not pay for loss or damage caused .." by or resulting 'rom: (1) Wear and tear; .. . (2) Hidden or latent defect; (3) Rust; (4) Corrosion; or . (5) Mechanical breakdown, d, The most we will pay for loss or damage in anyone occurrance Is the limit of In- surance for Outdoor Signs shown In the Declarations, e. The provisions of this Optional Coverage . supersede all other references to outdoor slg~s In this policy, . , .. , 2. Exterior Grade Floor Glass u. We will pay for direct physical loss of or , damage to. all axterlor grade floor and basement glass. Including all lettering and ornamentation. located at the. described premises and: . . (1) Owned by.'you; or. ";' (2) I Owred I by. others but .In your care. o I. ':,j (, custody or control, . b. Wa will also pay for necessary: ,'f, : 0' (1), Expenses Incurred to put up temporary " ,: '... ,.' . plates or board up openings; (2) Repair' o( Iliplacement of encasing \.' '"I .! frames; and I, .' .,., , (3)' Experi.ses Incurred to.rem'o'le or replace ... obstructions, . .:. .'. i ' . .. . c.. Paragraph A,3.. Covered Causes of Loss. ,".: .,. and Section B,. Exclusions. do not apply . . to this Optional Coverage. except for: . I . (1) Paragraph B,l,c,. Govarnmental ACllun; . .. ',. (2) Paragraph B,l,d,; Nuclear Hazard; and I,.., . ,I. '. .,. (3) Paragraph B.l.1.. War and Military . Action, ., Ii, -,. d. We will not pay for loss or damage caused ~ by or resulting from: (1) Wear and tear; (2) Hidden or lalent defecl; (3) Corrosion; or (4) Rust. 0, This Optional Coverago supersedes all Iimilations in this policy that apply to ex- terior grade f10cr glass, 3, Money and Securities D. WO will pay for loss of monoy and securi- ties used in your business whila at a bank or savings institution. within your living . quarters or the tiving quarters of your partners or any employee having use and custody of the property. at the described premises. or In transit between any of these places, rosulting directly from: (1) Theft. meaning any act of stealing; ,.i (2) Disappearance; or (3) Destruction, b. In addition to the Llmllationsand Exclu- . slons applicable to property coverage, we " will not pay for loss: (1) Resulting from accounting or arithme- tical errors or omissions; (2) Due to the giving or surrendering of property in any exchange 9r purchase; or . (3) Of propertY 'contained in a~y money- operated device unless the amount of money deposited in it Is recorded by a continuous recording Instrument in the device: c. Tha most we will pay for loss In anyone occurrence is:' I.. , (1) The limit shown In the Declarations for ., Inside the Promises for money and se- curl lies while: (a) In or on the described promises;. or (b) Wilhin a bank or savings institution; and BP,OO 02 06 89 Copyright, Insuranco Services QUice, Inc., 1984, 19B8 Pago:15 of 19.. 0 , (2) The loss or damage would have been covered by this Optional Coverage had it been in effer.t when the acts or even,s causing Iho loss or damage wero com. milled or occurred. l. The insurance under paragraph h. above is part of, not in addilion to, the Limit of In. surance applying to this Optional Coverage and is timited to the lesser of tho amount recoverable unde,: (1) This Optional Coverage as of its effec- tive date; or '.0:. .. (2) The prior insuranco,had it romained in effect, ,. 5,' Mechanical Breakdown a. We will pay for direct damage to Covered Property caused. by an Accident to an Ob. ject. The Object must bo: ,.., . (1) .Owned by you or in your care. custody or control; and ,.,....' ,. (2) At the described premises, '. q. , if Accident means a sudden and 'accidental \',: . breakdown of the Object or a part of tho Object. At the time the breakdown occurs. ,,'J J, .:' it must manifest itself by physical damage '" .! ,.:. to'the Object that necessitates repair or 10", .' replacement. '" . , c. None of the follo~ing Is an Accident: ,{:.~ ;i....I. ..', " , ' .to;,,,,!,' .(1). Depletion, deterioration,. corrosion or ,~rqsi(;m;,. ." '. . (2) Wear and tear; '{";: (3)'. Leakage at any valve. filling, shaft seal, gland packing, joint or connection; l:r.; ~, .(4) Breal<downof any vacuum tube, gas ,to..',.... , 'tube or brush; . \,1:; .iI. '.. I II ;', )" :r"",(51..Bre~kdown of any electrpnl? compu.ter or electronic data processing equ,p. ment; 1111 t"r. :: '. .1, ! , , I I I . r , I I I I . ~ . , ,,~ ,i." ',.. ". ",," ,_, . l I..'. ,', BP 00 02 06 89 .' (6) Breakdown of any SlruCluro or founda, tion supporting the Object or any of ils parts; (7) The functioning of any safelY or pro. tective device; or (8) The explosion of gases or fuel within the furnace of any Object or within the flues or passages through which tho ga.ses of combuslion pass. d, Object means any of the following equip. ment:." . (.1) B~i1~'r and i'ressure Vessels: I. (a) Steam heating boilers and condensate return tanks used with them; (b) Hot water heating boilers and ex. pansion tanks used with them; (c) Hot waler supply boilers;' (d) Other fire'd or unfired vessels used for maintena.nce or service of the discarded premises but not used for processing or manufacturing; (e) Steam boiler piping, valves, fillings, traps. and separators, but only if :'they:', i.. .~, .(1) Are.on your premises or between . parts, of your premises; . (il) Contain steam or condensate of steam; ahd . I,." oJv .' , ..., (iil). Are nol.pert of any other vessel ... or apparatus; (f) Feed water piping between any steam, boiler and a teed pump or injector, ." (2) Air. Conditioning Units. Any air ,condi- tioning. Unit,. that has a capacity of 60,000 Btu or more, including: (a) Inductors, convectors and coils that make use of a refrigerant and form part of a cooling, humidity control or space heating system; ....'J , \" ~rl , , ,.;.1, .u Copyright. Insurance Services Qffice,'lnc.. 1984. 19B8 Page.17 of 19 . 0 UUSINESSOWNERS , , BUSINESSOWNERS LIABILITY COVERAGE FORM , Various provisions In this policy reslrict coverage. R'ead Ihe enllre policy carefully 10 determine righ.s, dulies and what is and Is not covered. Throughout this policy the words 'you' and 'your' refer 10 the Named Insured shown in Ihe Declaralions. The word~ 'we,"us' and 'our' refer to the Company providing this insurance. The word "insured" means any person or organizalion qULlifying as such under SECTION C - WHO IS AN INSURED. . ,. Olher words and phrases that appear In quotation marks have special meaning. Refer to SECTION F - LI- ABILITY AND MEDICAL EXPENSES DEFINITIONS. ' ' A, COVERAGES ,. (2) To: '1. Business Liability . ..,. (a) "personai injury" caused by an of- '.' a. Wa 'will pay.those sums thai tha insured fense arising out of your business, becomes legally obligated 10 pay as dam- excluding advertising, publishing, ages because of 'bodily injury: "property broadcasting or telecasting done by damage," "personal injury" or "advertising or for you; Injury" to which .this insurance appties. (b ) "Advertising injury" caused by an We will have the right and duty to defend offense commilled in the course of any "suit" seeking those damages, We may advertising your goods. producls or at our discretion investlgale any "occur- services; . , rence" and settle any claim or "suit" that but only if the offense was commined may result, But: in the "coverage territory' during the (1) The amount we will pay for damages policy period, is limited as described in SECTION D - c. Damages because of 'bodily Injury" in- LIABILITY AND MEDtCAL EXPENSES elude damages claimed by any person or LIMITS OF INSURANCE; and organization for care, loss of services or (2) Our right and duty to defend end when death resulting at any time from the "bodily we have used up the appticable limit injury: . ,. of Insurance in..the payment of judg- d. "Property damage" that is loss' hf use of ..' . \. '; ,:: ments'. or: settlements. or medical ex- " tangible property that is not physically in- penses, jured will be deemed to occur at the lime No oth~r obligation or tiability.to Jay sums of the "occurrence" that caused it. or perfprm acts or services is covered un- e.. Coveragll Extension - Supplementary less explicitly provided for under COVER- Payments ."...' rAGE., EXTENSION.. SUPPLEMENTARY In addition to the Limit of Insurance, we .~, PAY~ENTS. will pay, with respect to any claim or "suit" b. This insuranca applies: we defend: . (1). To "bodily injury" and "property dam- (1) All expenses we incur.. age" only.if: . ' (2) Up to $250 for cost of bait bonds re- . (a) The. "bodily injury" or "properlY quired because of accidenlS or traffic d,mage" is caused by an "occur- law violations arising out of the use of rence" that takes place in the cov. any vehicle to which Business Liability erage terrilo,y;" and Coverage for "bodily injury" applies. , (b) We do not have 10 furnish Ihese bonds, The "bodily .Injury" or "property damage" occ.urs during the policy . (3) The cost of bonds to release attach- period,:1 ,.. ments, but only for. bond amounts within our Limit. of Insurance, We do not have to,furnish these bonds,. .' c '! I' 1... ,t.l:: ,),.j :(l'~ .,~(! I. I, " 'Ii:.. ,.,' , ..I::;.,~1 1', 'J,',~.I'(('~"'I"'~ !~,i\ '.':..1 " '.',. ,', : i' J ~., .j . ." '" I ' BP 00 06 06 89 Copyright, tnsurance Services Qfflce, Inc.. 1989 Page 1 of 12,;.. 0 This exclusion applies: I I (a) Whether the insured m"y be liable as an employer or in any olher ca! pacitv; and (b) To any obligation to share damages with or repay someone else who must pay damages because 01 the injury. This exclusion does' not apply 10 tiability assumed bV the insured under an "insured contract." l I, (1) "BodilV injury" or "property damaoe" arlsino out ollhe actual. alleged or Ihreal- ened discharge,. dispersal, seepage, mi. gralion. release or escape of pollulanls: . .' " . (a). At or Irom any premises, site or 10' cation, which is or was at any time " !' ,'. . owned or occupied by, or rented or loaned to, any. insured; (b) At or Irom any premises, site or lo- cation which is or was at any time used by or lor any insured or others . for the handling, storage, disposal, processing or treatment 01 waste; , (e) Which are or were at any time ..transported..."., handled, stored, .. treated. disposed 01, or processed as waste by or lor any insured or any person or organization for whom you may be legally responsible; or (d) At or Irom any premises, site or lo- cation on which any insured or any contractors or subcontractors work- ing directlv or indirectly on any .....,,: .,,' . Insured's behalf ara performing op- erations: (i) ,II the pollutants are brought on or to the premises, site or 10- ,. ,cation in connection with such operations by such insured, contractor or subcontractor; or (ii) II the operations are to test for, monitor, clean up, remove. con- tain, treat. detoxify or neutralize, or in any way respond to, or as. sess the ellects of pollutants. Subparagraphs (a) and (d)(i) do not apply to "bodily injury" or "property damage" arising out 01 heat, smoke or ,: (" I lumes Irom a hostilo lire. I " ~~ . ~. I " ~, :: ...... .... ,. . ,. . .\ I' BP 0006 06 89 " As used in this exclusion, a hostile fire means one which becomes uncontrol. lable or breaks oul from where it was inlended to be. (2) Any loss, cost or expense arising out 01 any: (e) Request, demand or order Ihat any insured or others lest for, monilor, clean up. remove, con lain, treal, detoxify or neulralize, or in any way respond to, or assess Ihe effecls 01 pollutants; or , (b) Claim or "suit" by or on behalf of a governmental authority lor damages because 01 testing lor, moniloring, cleaning up, removing, containing, treating" deloxifying or neulralizing, or in any way responding 10, or as. sessing the effects 01 pollutants. Pollutanls means any sotid. liquid, gaseous or Ihermal irritant or contaminant, includ. ing smoke, vapor, 300t, lumes, acids, alkalis, chemicals and waste, Waste in- . eludes materials. to be recycled, recondi. . tioned or reclaimed, g. "BodilV Injury" or "property damage" aris- ing out 01 the ownership, maintenance. use or entrustment to others 01 any aircraft, "auto" or watercralt owned or operated by or rented or Iqaned to any insured, Use ., includes operation and "loading or un- loading." , This exclusion does not apply to: (1) A watorcralt while ashore on premises you own or rent; (2) A watercralt you do not own that is: (a) Less than 26 leetlong; and . (b) Not being used to carry persons or property lor a charge; . (3) Parking an "auto" on, or on the ways next to, premises you own or rent, pro- vided the "auto" is not owned by or rented or loaned to you or the insured; (4) Liability assumed under any "insured contract" for the ownership, mainte- nance or use 01 aircraft or watercraft; or ... ., ,.. '.. lv ..'lIt'l :', , ,..-.1 ". 'j ..' .. ,. " "t,", '.; ,;, Cop.,.right, Insurance Services Qllice, Inc.., 1989 Page 3 0112 0 .1 (2) A delay or failure by you or anyone acting on your behalf 10 perform a contract or agreement in accordance I wilh its lerms, , This exclusion does not apply to the loss of use 0' olher property arising out of sudden ond accidenlal physical injury to "your product" or "your work" alter it has been put to its intended use. 0, Damages claimed for any loss, cost or ex. ponse incurred by you or others for Ihe loss of use, wilhdrawal, recall, inspection, reo pair, replacement. adiuslment. removal or disposat 0': (1) "Your product;" (2) "Your work;" or (3) "Impaired property;" if such product. work or property is with- drawn or recalled from the market or from use by ony person or organization because . of a known or suspected defect. defi. ciency. inadequacy or dangerous condition in it, p, "Personal injury" or "advertising injury:" . (1) Arising out of oral or wrinen pubtica- .. tion of material. if done by or at the di- raction of the insured with knowledge of its fatsity; . ...(2) Arising out of oral or wrinen pubtica- tion.of material whose first publication .. . took place before the beginning of th~ policy period; (3) Arising out of the willful violation of a . penal statute or ordinance commined by or with the consent of the insured; or (4) For which the insured has assumed li- ability in a contract or agreement, This exclusion does not apply to tiability for " damages that the 'Insured would have in the ebsence of the contract or agreement. '.' q, "Advertising injury" arising out of: (1) Breach of contract, other than misap- propria lion of advertising ideas under an implied contract; (2) The failure of goods, products or ser- vices to conform with advertised quality or performance. , .. (Ji The .wrorig description of the price of goods, products or services; or ,; ., (4) An offense commined by an insured whose business is odvertising, broad- cosling, publishing or telecaslin(J. E>cclusions c,. d., e., f., g.. 11,. i" k,. I., m" n, and o. do not apply to damage by fire or explosion to premises renled to you, A separate Limit of Insurance applies to this coverage as described in Section D., Limils 01 tnsurance, 2. Applicable to Medical Expanses Cover- age - We will not pay expenses for "bodily injury:" a, To any insured.. b. ..T~ a person hiied to do work for or on behalf of any insured or a tenant of any insured, .' '. c. To 0 person injured on that part of prem- ises you own or rent that the person normally occupies, d,. To a person, whether or not an employee of any insured. if benefits for the "bodily injury" are payable or must be provided under a workers' compensation or disabil- ily benefits law or a similar law. e, To a person injured while teking part in athletics, f, Included within the "products-completed operations hazard: g, Excluded under Business Liability Cover- age, h. Due to war. whether or not declared, or eny act or condition incident to war, War . includes civil war. Insurrection, rebellion or revolution, , 3. Applicable to both Business Liability Coverage and Medical Exponses Cover- age - Nuclear Energy Liability Exclusion. This insurance does not apply: ' a, Under Business Liabitity. Coverage. to . "bodily injury" or "property damage:" (1) With respect to which an insured under the poticy is also. an insured under a nuclear energy tiability policy issued by Nuclecr Energy Liability Insurance As- sociation, Mutuat Atomic Energy Li- abililY Underwriters or Nuclear Insurance Association of Canada, or would be an insured under any, such policy but for its termination upon ex- haustion of its limit of liability; or , B P .00 06 06 89 " Copyright, Insurance Services Qffice, Inc., 1989 Page 5 of 12 0 ,. I , "'waste'" means any waste materiaL (a) Containing "by-product malerial" olher than Ihe lailings or waSles produced by the' extraction or cO;lcentration of uranium or thorium from any ore processed primarily for its "source material" co~lenl; and (b) Resulting from the operation by any person or organization of any "nuclear facility" included under paragraphs (a) and (b) of the definition of "nuclear facilily." C, WHO IS AN INSURED 1. If you are designaled in tho Declarations as: a, An individual, you and your spouse are Insureds, but only wilh respect to the conduct of a business of which you are the sote owner, . b. A partnership or joint venture, you are an " insured. Your members, your partners and their spouses are also insureds, but only with respect to the conduct of your busi- ness, c, An organization other than a partnership or joint venture, you are an insured. Your executive officers and directors are in- sureds, but only with respect to their duties as your officers or directors. Your stock- '.. '..holders are also insureds, but only with , ., ;'. ". respect to their Iiabitity as stockholders, 2. Each of the following Is also an insured: a. Your employees, other thim your executive officars, but only for acts within the scope ., of their employment by you, However. no employee is an insured for: .. (1) "Bodily injury" or "personal injury" to you or to a co-employee while in the . .. 'course of his or her employment. or to the. spouse. child, parent, brother or sister of that co-employee as a conse- quence of such "bodily injury" or "per- sonal injury: or for any obligation to share damages with or repay someone elso who must pay damages because of the injury; (2) "Bodily injury" or "personal injury" arising out of his or her providing or failing t<:' provide professional heallh care services; or (3) "Property damage" to property owned or occupied by or rented or loaned 10 that employee, any of your other em- ployees. or any of your partners or .." members (if you are a partnership or ',' 'joint venture,) '. '''d I., b. Any person (other than your employee,) or any organization while acting as your real eslate manager, c. Any person or organization haviny proper temporary custody of your property if you die, but only: (1) With respect to tiabllity arising out of Ihe mainlenance or use 01 that property; and (2) Until your Ipgal represenlalive has been appointed, d. Your legal reprosentalive if you die. but only with respect to dUlies as such, That representatil1e will have all your rights and duties under this policy. . ' . 3. With respect to "mobile equipment" registered in your name under allY motor vehicle regis- tration law, any person ,s an insured while driving such equipment along a pubtic high- way with your permission, Any other person or organization responsible for the conduct of such person is also an insured, but only with respect to tiability arising out of the operation of the equipment, and only if no other insur- ance of any kind is available to that person or organization for this tiability. However. no person or organization is an insured with re- spectto: . . a. "Bodily injury" to a co-employee of the person driving the equipment; or b; "Property damage" to property owned by, rented to, in the charge of or occupied by you or the employer of any person who is an insured under this provision, " .,; No person or organization is an insured with respect to the conduct of any curren" or past partnership or joint venture that is not shown as a Named Insured in the Declarations, D. LIABILITY AND MEDICAL EXPENSES LiM- ITS OF INSURANCE 1. The Limits of Insurance shown In the Decla- rations and the rules below fix the most we will pay regardless of the number of: " : a. Insureds; b, Claims made or "suits" brought; or c. Persons or organizations making claims or bringing "suils." !; B P 00 06 06 89 I Copyrighl, Insurance Services Qllice, Inc.. 1989 Page 7 of 12 0 3, Financial Responsibility Laws a, When this policy is cerlified as proof of fi. nanclal responsibility for Ihe future under I the provisions of any motor vehicle finan- ciat responsibility law, the insurance pro- vided by the poticy for "bodily injury" tiability and "property damage" liability will comply with the provisions of the law to the extent of the coverage and limits 0' insurance required by Ihat law. b. With respect to "mobile equipment" 10 which this insurance applies, we will pro- vide any liability, uninsured mOlorisls, underinsured motorisls, no. fault or olher coverage requ ired by any motor vehicle law. We will provide the required limits for those coverages. 4, Legal Action Against Us . No person or organization has a right under this policy: a. To join us as a party or otherwise bring us , into a.-suit" asking for damages from an insured; or . b. To sue us on this policy unless all of its terms have been fully complied with, A person or organization may sue us to re- .cover on an agreed settlement or on a final judgment against an insured obtained after an actuallrial; but we will not be liable for dam- ; . ages that are no\ payable under the terms of this policy or that are in excess of the appli- cabla timit of insurance, An agreed settlement means. a settlement and release of tiabilily signed by us, the Insured and the claimant or the claimant's legal representalive. 6. Separation Of Insureds Except with respect to the Limits of Insurance, and.any rights or duties specifically assigned In this policy to the first Named Insured, this I ' insur~nce applies: a. As if each Named Insured were the only Named Insured; and . b, Separately 10 each insured against whom claim Is made or "suit" is brought. F, LIABILITY AND MEDICAL EXPENSES DE. FINITIONS 1. "Advertising Injury" .means injurY arising .out of.one or more of the following offenses: .. a,. Oral or, written publication of material that ..':" .slangers or libels a p~rson pr,organizalion or disparages a person's or organization's goods, products or servicesi b. Oral or wrinen publicallon 0' material that violates a person's right of privacy; c, Misappropriation of advertising ideas or style of doing business; or d, Infringement of copyright, litle or slogan. 2. "Auto" means a land mOlor vehicle, trailer or semitrailer designed for trRvel on public roads, including any attached machinery or equip- ment, But "auto" does not include "mobile equipment." 3, "Bodily Injury" means bodily injury, sick- ness or disease suslained by a person, in- cluding death resulting from any of these at any time, 4, "Coverage Territory" means: a. The United States of America (including its territories and possessions). Puerto Rico and Canada; b. Inlernatlonal waters or airspace, provided the Injury or damage does not occur In the course of travel or Iransportation to or from . any place not Included in a, above; or c. All parts of the world if: (1) The Injury or damage arises out of: (a) Goods or products made or sold by . you in the territory described in a, above; or (b) The activities of a person whose home Is in the territory described in a, above. but Is away for a short time on your business; and (2) The Insured's responsibility to pay damages is determined In a "suit" on the merits in the territory described in a, above or in a settlement we agree to, 6. "Impaired Property" means tangible prop- erty. other than "your product. or "your work: that cannot be used or Is less useful because: a. It Incorporates .your product" or "your work" that is known or thought to be de. fee live, deficient, inadequale or dangerous; or b. You have failed to fulfill the lerms of a contract or agreement; ',. ., B P 00 06 06 B9 ' Copyrighl, Insurance Services Qllice. Inc., 1989 Page 9 of 12 0 .. (2) Cherry pickers and similar devices used to raise or lower workers; f., Vehicles not described in a.. b,. c, or d. I . ,above maintained primarily for purposes other.than Ihe transportation of persons or cargo, However. self-propelled vehicles with the following Iypes of permanently attached equipmenl are not "mobile equipment" but . .' will be con~idered "aulos:"' (1) . F.quipment designed .primarily for: (a) Snow removal; '" . (b) . Road maintenance~ bUI not con- .., ' , . struclionor resurfacing; (e) 'Slreet cleaning; ...(2). Cherry I pickers ,and similar devices . mounled on automobile or truck chas- sis and ~sed 10 raise or lower workers; and (3) Air compressors, pumps and genera- tors, including spraying. welding. building cleaning, geophysical explora- tion. tighting and well servicing equip- ment. 9. "Occurrence" means an accident. Including conlinuous or repealed exposure 10 substan- tially Ihe same general harmful conditions, 10. "Personal Injury" means injury, other than "bodily injury: arising OUI of one or more of the following offenses: a. False arrest. detention or imprisonment; b. Maticious prosecution; c. The wrongful eviction from. wrongful entry Into. or invasion of Ihe right of private oc- cupancy of a room. dwelling or premises that a person occupies, by or on behalf of its owner. landlord or lessor. d, Oral or ',.."illen publication of material that slanders or tibels a person or organization or disparages a person's or organization's goods, products or services; or e. Oral or written publicalion of material that violales a person's right of privacy. 11, a, "Products - Completed O;>oratlons Hazard" includes all "bodily injury" and "property damage" arising out of "your product" or "your work" except: (1) Products that are still in your physical possession; or ....,. .- (2) Work ther has not yet been compleled or abandoned. The "bodily injury" or "properlY damage" must occur away from premises you own or rent, unless your business includes the sellino. handling or dislribulion of "your product" for consumption on premises you own or rent. b, "Your work" will be deemed compleled at the earliesl of the following times: (1) When all of the work called 'or' in your contract has been completed. (2) When all of Ihe work 10 be done althe . . site has been compleled if your contract calls for work at more than one sile, (3) When Ihat p.art of the work done at a job site has been putlo ils intended use .... by any person or organization other than another contractor or subcontrac- tor working on the same project. Work that may need service, mainlenance, correclion. repair or replacement. but which is olherwise complete, will be treated as completed. c, This hazard does not include "bodily in- jury" or "property damage" arising out of: (1) The transportation of property. unless the injury or damage arises out of a condition in or on a vehicle created by the "loading or unloading" 01 it; or (2) The existence of lools. un installed equipmenl or abandoned or unused materials. 12. "Property Damage" means: a. Physical injury to langible property. in- cluding all resulting loss of use of that property, All such loss of use shall be deemed to occur at the time of the physical injury Ihat caused it; or b, Loss 01 use 01 tangible property that is not physically injured, All such loss 01 use shall be deemed to occur al the lime of the "occurrence" that caused iI, 13, "Suit" means a civil proceeding in which damages because 0' "bodily injury," "property damage," "personal injury" or "advertising in- jury" to which Ihis insurance applies are al- leged, "Suit" includes: a, An arbitralion proceeding i.1 which such damages are claimed and to which you must submit or do submit with our con- sent; or :: BP 00.06 06 A9. Copyrighl. Insurance Servicos Qffice. Inc.. 1969 Page 11 0112 0 BUSINESSOWNERS COMMON POLICY CONDITIONS All coverages of this policy are subject to Ihe following condilions. A, CANCELLATION (5) Failure 10; 1, The first Named Insured shown in the Decla'. (al Furnish necessary heat, waler, ralions may cancel Ihis policy by mailing or sewer service or eleclricity for 30 delivering to us advance wrillen nOlice of consecutive days or more, except cancellalion. during a period 0' seasonal unoc. 2. We may cancel this policy by mailing or de. cupancy; or livering to the first Named Insured wrillen (b) Pay property taxes that are owing notice of cancellation at least; and have been outstanding lor more than one year following the dale a, 5 days before the effeclive dale of cancel- due. except Ihat this provision will lation if anyone of the following condi. not apply where you are in a bona tions exists at any building Ihat is Covered fide dispute with the laxing author. Property in Ihis policy, ity regarding payment of such taxes. (1) The,bduiledoing has been vacanl.or udnoc. b. 10 days before the effective dale of can- cuple or more consecullve ays, cella lion if we cancel for nonpayment 0' This does not apply to; premium. (a) Seasonal unoccupancy; or e. 30 days be'ore the effective date of can. (b) Buildings In the course 0' con. cella lion if we cancel for any othor reason, struction, renovalion or addition. 3. We will mail or deliver our nOlice 10 the first Buildings with 65% or more of the Named Insured's last mailing address known rental unils or floor area vacant or un. 10 us, occupie~ arc ~,?nside'ed unoccupied 4. Notice 0' cancellalion will stale Ihe etrective u"der thiS prOV'Slon, date of cancellation, The policy period will (2) After damage by a covered cause of end on that date. loss, permanent repairs to the building: 5. If this poticy is cancelled, we will send the first (a) Have not started, and Named Insured any premium refund due. If (b) Have not been contracted for, we cancel. the refund will be pro ,ata, If the first Named Insured cancels, the refund may wilhin 30 days of initial payment of be less than pro rata, The cancellation will be loss, etrective even if we have not made or offered (3) The building has: a refund. (a) An outstanding order to vacale; 6. If notice is mailed, proof of mailing will be sufficient proof of notice, (b) An outstanding demolition order; or B, CHANGES (e) Been declared unsafe by govern- mental authority, (4) Fixed and salvageable ilems have been or are being removed from the building and are not being replaced. This does not apply to such removal that is nec- essary or incidental to any renovation or remodeling. ( "", This poticy contains all the agreeme.us between you and us concerning the insurance atrorded. The first Named Insured. shown in the Declara- tions is authorized to make changes in the terms of this poticy wilh our consent. This policy's terms can be amended or waived only by endorsement issued by us and made a part of this policy. BP 00 09 06 89 Copyright, Insurance Services Qffice, Inc" 1984, 1988 Page 1 of 3 0 , - THIS ENDORSEMENT CHANGES HIE.POUCY. PLEASE READ IT CAREFULLY. PENNSYLVANIA CHANGES- CANCELLATION AND NONRENEWAL I This endorscmcnlmodlrics Insurance provided unuer the following: BOILER AND MACHINERY COVERAGE PART BUSINESSOWNERS POLICY COMMERCIAL AUTO COVERAGE PART COMMERCIAL CRIME COVERAGE PART" COMMERCIAL GENERAL LIABILITY COVERAGE PART COMMERCIAL PROPERTY COVERAGE PART COMMERCIAL INLAND MARINE COVERAGE PART FARM COVERAGE PART LIQUOR LIABILITY COVERAGE PART POLLUTION LIABILITY COVERAGE PART PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART . This endorsemenl does nol apply to coverage provided for employee dishonesly (Coverage Form A) or public employee dishonesly (Coverage Forms 0 and Pl. A. The CANCELLATION Common Policy Condition Is replaced by the following: CANCELLATION 1. The firsl Named Insured shown in the Decla- ralions may cancel Ihis policy by writing or giving nolice of cancellation. 2, CANCELLATION OF POLICIES IN EFFECT FOR LESS THAN 60 DAYS We may cancel this pOlicy by mailing or de- livering to Ihe first Named Insured wrillen nolice of cancellation at least 30 days belore Ihe effeclive date of cancellation, 3. CANCELLATION OF POLICIES IN EFFECT FOR 60 DAYS OR MORE If Ihis policy has been in effect 'or 50 days or more or if this policy is a renewal of a policy we issued, we may cancel this policy only for one or more of Ihe 'ollowing reasons: 3. You have made a material misrepresen- tation which affects the Insurability of Ihe risk. Nolice of cancellation will be mailed or delivered al least 15 days be'ore Ihe elrective dale 01 cancellation. b. You have failed 10 pay a premium when due, whelher Ihe premium is payable dl- reclly to us or our agents or indlreclly un- der a premium rinancc plan or cxl"Jnsion of credit. Nolice or cancellation will be lOaded at leasl 15 days belore Ihe elfec- live date of cancellalion. , , c. A condition, faclor or loss experience rna- leriallo insurabilily has changed substan- tially or a subslanlial condilion. faclor or loss experience material 10 Insurability has become known during Ihe policy pe- riod. Nolice of cancellation will be mailed or delivered at least 60 days before the elfective dale of cancellation, d. Loss of reinsurance or a substantial de- crease In reinsurance has occurred, which loss or decrease, at Ihe time of cancella- lion, shall be certified 10 the Insurance Commissioner as directiy affecting in- 'orce policies. Nolice of cancetiatlon will be mailed or delivered at least 60 days before Ihe elfective dale 01 cancellation, e. Malerial failure to comply wllh policy lerms, condilions or contractual duties. Nolice of cancellalion will be mailed or delivered at least 60 days before the ef. feclive date of cancellation. I, Olher reasons Ihat the Insurance Com- missioner may approve. Notice of can- cellation will be mailed or delivered al least 60 days "e'ore the elfeclive dale 01 cancetialion. This policy may also be cancelled from Inceplion upon discovery Ihat the policy was oblained Ihrough 'raudulenl slalements, omissions or concealment of 'acts maleriallo the acceplanc~ of Ihe risk or 10 the hazad assumed by us. IL 02 46 06 69 Copyright, Insurance Services Ollice. Inc., 1986,1969 Copyright, ISQ Commercial Risk Services, Inc., 1986, 1989 Page 1 of 2 IJ POLICY NUMBER:' BOP 01 05 Id . . ~ .. . I,. BUSINESSOWNERS '. THIS ENDORSEMENT CHANGES THE POLICY, PLEASE READ IT CAREFULLY, HIRED AUTO AND NON-OWNED AUTO LIABILITY This endorsement moddles insuronce provided untler the 'ollowing: BUSINESSOWf'iERS POLICY SCHEDULE . . Coverage Hired Auto Liability. ,. Non.Owned Auto Liability A, Insurance is provided only for those coverages for which a specific premium charge is shown in the Declarations or in the Schedule. I. HIRED AUTO LIABILITY The insurance provided under the Busines. sowners Liability Coverage Form, Paragraph AI. Business Liability, applies to "bodily in. jury" or "property damage" arising out 01 the maintenance or use of a "hired auto" by you or your employees in the course of your business, 2, NON-OWNED AUTO LIABILITY The insurance provided under the Busines. sowners Liability Coverage Form", Paragraph AJ. Business Liability, applies to "bodily in- jury" or "property damage" arising out of the use of any "non.owned auto" in your business by any person other than you. B. For insurance provided by this endorsement only: 1, The exclusions, under the Businessowners Li. ability Coverage Form, Paragraph B.I. Applica. ble to Business Liability Coverages, other than exclusions a., b., d., f. and i. and the Nuclear Energy Liability Exclusion, are deleted and reo placed by the following: a, "Bodily injury": (1) To an employee of the insured arising out of and in the course of employ- ment by the insured; or (2) To the spouse, child, parent, brother or sister of that employee as a conse. quence of (I) above. This exclusion applies: (a) Whether the insured may be liable as an employer or in any other capacity; and (b) To any obligation to share damages with or repay someone else who must pay damages because 01 injury. '" .,. . "\'.' ...:,.:;.:' (;;opyright, Insurance Services Oltice, Inc., 1985 P,lce 1 01 2 I I BP04040I87 . , '.. Additional Premium I Net.. This exclusion does not apply to: (i) Liability assumed by the insured un. der an "insured contract"; or (ii) "Bodily injury" arising out of and in the course of domestic employment by the insured unless benefits for such injury are in whole or in part ei. ther payable or required to be pro. vided under any workers compen. sation law. b, "Property damage" to: (1) Property owned or being transported by, or rented or loaned to the insured; or (2) Property in the care, custody or con. trol of the insured, 2. WHO IS AN INSURED in the Businessowners Liabitity Coverage Form, Paragraph C, is reo placed by the following: Each of the following is an insured under this endorsement to the extent set forth below: a, You; b, Any other person using a "hired auio" with your permission; c, For a "non.owned auto," any partner or executive officer of yours, but only while such "non.owned auto" is being used in your business; and d, Any other person or organization, but only lor their tiability because of acts or omis. sionsof an insured under a., b. or c, above, None of the following is an insured: (I) Any person engaged in the business of his or her employer for "bodily In. jury" to any co.employee 01 such per. son injured in the course of ern. ployment; i'. ' !i ," ' , , , , , .., -...... ~ ~ ~ s ~ 0 :.-, Iti :)" :r III .... .... o IJ'o r- ~ ) '" ~ .- :,..- J,~ ~, Lt: !:'1: ~- .. 0 D! <.-'~~ ~.. -.::: ) ~.~ ('~ . - ~ ~i J C- )::J ~[; -.-.- ,~ -" '.~ ~1 1~j r C'J ...:~, I"' t- ~.riJ fiY' (.) 'lla.. "-': I~ C;; ::J ll_ "" U Si.~ 0 0' ~ . . . ,. .. r -, ":1 I - I.t I ~ V.: ,- () f': '. I,.,' -..- 0'. .- " [i!:, <',' .'- __I, W-:~ !J I- '- ". , - C L .... , .. . 4. . 4. Admitted, 5, Admitted in part, denied in part, It is admitted that on or about July 21, 1992 the business owned by Plaintiffs and insured by Defendant was damaged by fire, It is denied that the fire was a covered loss under the aforesaid policy. To the cont.rary, see New Matter. 6, The averments in Paragraph 6 are legal conclusions to which no answer is required. If it is deemed that an answer is required, it is admitted that the named insured is "Jesse L, Frey and C. Lewis Hill tia Beedle's Flowers". If it is further deemed that an answer is required, language of the policy speaks for itself, It is denied that the referenced language has any factual or legal application to Plaintiffs claim. 7. The averments in Paragraph 7 are legal conclusions to which no answer is required. If it is deemed that an answer is required, the Defendant fulfilled all of his duties required by law, The remaining averments are denied, By way of further an8wer, see New Matter. 8. It is admitted that the PlaintilTs and others acting on their behalf provided notification to Lititz of the loss and delivered to Lititz documentation concerning their loss. The remaininK averments arp. specifically denied, By way of further answer, see New Matter. " ...._. r.~_ '" .''''1','''~; u'...~, "'.. ....."..'; (1') . , . exhibit A . . .. BUSINESSOWNEAS BUSINESSOWNERS SPECIAL PROPERTY COVERAGE FORM Varloua pr~visio~" In this polley restrict coveraga. Read the ant ire policy cerefully to determine rights, duties and whet IS and IS not covered. Throughout this poticy the words 'you' end 'your' refer to the Nemed Insured shown in the Decleretions The words 'we: 'us' end 'our' refar to the Company providing this insurance. . Othar words and phrases thet appear in quotetion marks have special meaning. Refer to SECTION H - PROP- ERTY DEFINITIONS, A, COVERAGE We will pay for direct physical toss of or damage to Covered Properly at the pramlses described in the Declarations caused by or rasulting from any Covered Cause of Loss, 1, Covered Property Covered Properly, as used in this policy, means the following types of properly for which a limit of Insuranco is shown in the Declarations: e. Buildings. meaning the buildings and structuras at the premises described In the Declarations, including: (1) Completed additions; (2) Permanently installed: (a) Fixtures; (b) Machinery; and (c) Equipment; (3) Your personal properly in apartments or rooms furnished by you as landlord; (4) Outdoor fixtures; (5) Personal properly owned by you that is used to maintain or service the buildings or structures or the premises, including: (a) Fire extinguishing equipment; (b) Outdoor furniture; (c) Floor coverings; and (d) Appliances used for refrigerating, ventilating, cooking, dishwashing or laundering; (6) If not covered by other Insurance: (e) Additions under construction, elter. ations and repaira to the buildings or structures; (b) Materials, equipment, suppties end temporary structures, on or within 100 feet of the described premises, used for making additions, alter- ations or repairs to the buildings or structures, b, Buslneas Personel Property located In or on the buildings at the d~scribed prem- ises or in the open (or in a vehicle) within 100 feat of the described premises, in- cuding: (1) Properly you own that Is used in your business; (2) Properly of others that is in your care, custody or control, but this properly is not covered for more than the amount for which you are legally liable, ptus the cost of labor. materials or services fur- nished or arranged by you on personal properly of others; and (3) Tenant's improvements and betterments. Improvements end betterments are fixtures, alterations, in- stallations or additions: (e) Made e part of the structure you occupy own; and (b) You acquired or mede at your ex- pense but cannot legally remove. building or but do not BP 0002 06 89 Copyright, Insure nee Services QHice, tnc., 1984, 1988 Page 1 of 19 0 2. Prop. My Not Covered Coverlld Property does not include: .. Aircraft, automobiles, motortrucks end other vehicles lubject to motor vehicle registration; b. BulliDn, money or securities; c. Contrabend, or property in the course of iIIegaltrensportstlon or trade; d, Land (including land on which the prop- erty Is located), water, growing crops or lawns; .. OutdoDr fences, radio or television anten. nas. including their lead-in wiring, masts or towers. signs (other than signs attached to buildings), trees, shrubs or plants, all except as provided in the: (1) Outdoor Property Coverage Extension; or (2) Outdoor Signs Optional Coverage; f. Watercraft (Including motors, equipment and accessDries) while afloat, 3. Covered Ceu.e. of Lo.. RISKS OF DIRECT PHYSICAL LOSS unless the loss is: e. Excluded in Section B.. Exclusions; or b. Limited In Paragraph A.4., Limitations; that follow, 4, L1mltetlon. .. We will not pay for loss Df or damage to: (1) Steam boilers, staam pipes, steam en- gmes or steam turbines caused by or resulting from any condition or event inside such equipment. But we will pay for loss Df or dsmage to such equip- ment caused by or resulting from en explosion of gasas or fuel within the furnace of any fired vessel or within the fluel or passeges through which the gRles of combustiDn pass. Pege 2 of 19 . ..,.."'--- -~ (2) Hot water boilers or other water heating equipment caused by Dr resulting from any condition Dr event InsIde luch boilers or equipmant. other than en ex- plosion, (3) Property that is missing, butthare is no physical evidenca to Ihow what hap- pened to It, luch IS shortaga disclosed on taking inventory, This limitation does not apply to the Optional Covar- aga for Money and Securities, (4) Property that has been transferred tD a person or to a place olltside the de- scribed premises Dn the basis of unau- thorized instructions, b, Wa will not pay mora for loss of or damage to glass that is part Df e building or struc- ture than $100 fDr each plata, pane, multi- ple plate insulating unit. radiant or solar heating panel. jalousie, louver or shutter, We will not pay more than $500 for all loss of or damage to building glass that occurs at anyone time, This limitation does not apply to loss or damage by the "specified causas of loss: except vandalism, c. We will not pay for loss of or damage to fragile articles such as glassware, statuary. marbles. chinaware and porcelains, if bro- ken, unless caused by the ".,pecified caused of loss" or building glass breakaga, This restriction dDes not apply tD: (1) Glas~ that Is P&rt of a building or structura; (2) Containers of property hald for sale; or (3) Photographic or scientific instrument lanses. Copyright, Insurance Sarvices Qffice, Inc.. 1984, 1988 BP 00 02 06 89 . . f . . o . . . d, For loss or demage by thelt, Ihe following types of property are covered only up to the limits shown: (1) $2,500 lor lurs, fur garments .nd gar- ments trimmed with fur. (2) .2,500 for jewelry, walches, watch movements, jewels, pearls, precious and semi. precious slones, bullion, gold, silver, platinum and other pre- cious alloys or matals. This limit does not apply to jewelry and watches worth .100 or less per ilem. (3) .2,500 lor pallerns, dies, molds and lorms. 5, Additional Coveragas a, Debris Ramoval (1) We will pay your expense to remove debris of Covered Property caused by or resulting Irom a Covered Cause of Loss that occurs during the policy pe. riod. The expenses will be paid only if Ihey are reported to us in writing within 180 days 01 the earlier of: (a) The date 01 direct physical loss or damage; or (b) The end of the policy period. (2) The most we will pay under this Addi- tional Coverage is 25% of: (a) The amount we pay for the direct physical loss of or damage to Cov- ered Property; plus (b) The deductible in this policy appli- cable to that loss or damage, But this limitation dop.s not apply to any additional debris removal lImit pro- vided in paragraph (4) below. (3) This Additional Coverage does not ap- ply 10 costs to: (a) Extract "pollulants" Irom land or water; or (b) Remove, reslore or replace polluled land or water. (4) If: (al The sum 01 direct physical loss or damage and debris removal expense exceeds the Limit 0' Insurance; or (bl The deb"s removal expensa exceeds the emount payable under the 25% Deb"s Removal coverage limitalion In peragraph (2) ebove; we will pay up to an addiltonal s5,OOO for each location in anyone occurrence under the Debris Removal Additionel Coverage. b, Preservation of Property If it Is necessary to move Covered Property from the described premises to preserve it from loss or damage by a Covered Cause of Loss, we will pay lor any direct physical loss of or damage to that property: (1) While it is being moved or while tem- porarily stored et another location; and (2) Only if the loss or damage occurs within 10 days alter the property is first moved. c, Flra Department Service Charge When the lire department is called to save or protect Covered Property from a Cov- ered Cause 01 Loss, we will pay up to $1,000 lor your liability for lire department service charges: (1) Assumed by contract or agreement prior to loss; or (2) Required by local ordinance. d, Collapse We will pay lor loss or damage caused by or resulting lrom risks 01 direct physical loss involving collapse 01 a building or any part 01 a building caused only by one or more 01 the lollowing: (1) The "specified causes 01 loss' or breakage of building glass. all only as insured against in this policy; BP 00 02 06 89 Copyrighl, Insurance Services Qflico, Inc., 1984, 1988 Page 3 of 19 D (2) Hidden decey; (3) Hidden Insect or vermin damage; (4) Weight of people or personal property; (6) Weight of rein that collects on a roof; (8) Use of defective material or methods in construction, remodeling or renovalion if the collapse occurs during the course of the construction, remodeling or ren. ovation, We will not pay for loss of or damage to the following types ot propeny, if olher- wise covered in this policy, under items (2), (3), (4), (5) and (6) unless the loss or damage is a direct result of the collapse of a building: awnings; gutters and downspouts; yard fixtures; outdoor swimming pools; piers, wharves and docks; beach or diving platforms or appunenances; re- taining walls; walks. roadways and othar paved surfaces, Collapse does not include settling, crack. ing, shrinkage, bulging or expansion. e. Water Damage. Other Liquids. Pow- der or Molten Material Demage If loss or damage caused by or resulting from covered water or other liquid, powder or molten material damage loss occurs, we will also pay the cost to tear out and reo place any pan of the building or structure to repair damage to the system or appli- ance from which the water or other sub. stance escapes. We will not pay the cost to repair any de. fect that caused the loss or damage; but we will pay the cost to repair or replace damage pans of fire extinguishing equip. ment if the damage: (1) Results in discharge of any substance from an automatic fire protection sys. tern; or (2) Is directly caused by freezing. f. Business Income We will pay for the actual loss of Business Income you sustain due to the necessary suspension of your "operations" during the "period 01 restoration: The suspension must be caused by direct physical loss 01 or damage to property at the described premises, including personal propeny In the open (or in a vehicle) within 100 feet, caused by or resulting from any Covered Cause of Loss, We will only pay for loss of Business In- come that occurs within 12 consecutIve months aher the date of direct phYSical loss or damage, This Additional Coverage is not subject to the Limits 01 Insurance, Business Income means the: (1) Net Income (Net Profit or Loss before income taxes) that WGuld have been earned or incurred; and (2) Continuing normal operating expenses incurred, including payroll. g, Extra Expense We will pay necessary Extra Expense you incur during the "period of restoration" that you would not have incurred il there had been no direct physical loss or damage to property at the described premises, in- cluding personal property in the open (or in a vehicle) within 100 feet, caused by or resulting Irom a Covered Cause 01 Loss. Extra Expense means expense incurred: (1) To avoid or minimize the suspension of business and to cont.inue "operations:" (a) At the described premises; or (b) At replacement premises or attem. porary locations, including: (i) Relocation expenses; and (il) Costs to equip and operate the replacement or temporary lo- cations, Page 4 0119 Copyright, Insurance Services QHice, Inc.. 1984, 1988 B P 00 02 06 89 . c . ,- . '- o - '. (2) To minimize the suspension of business if you cannot continue "operalions: (3)(11) To ,apair or replaca any property; or (b) To research, replaca or raSlere the lost Informalion on damagad valu. able papers and ,ecords; to Ihe eXlent it reduces Ihe amount of loss that otherwise would have been payable under this Additional Coverege or Additional Coverage foo Business In. come. We will only pay fm Extra Expense that occurs within 12 consecutive monlhs aher the date 01 direct physical loss or damage, This Additional Coverage is not subject to rhe Limits ollnsuranca. h, pollutant Cleen Up and Removal We will pay your expense to extract "pollutants" Irom land or water at the de- scribed premises il the release, discharge or dispersal 01 the "pollutants" is caused by or results Irom a Covered Cause 01 Loss that occurs during tha policy period. Tha axpenses will be paid only ilthey are reo poned to us in wriling within 180 days 01 the earlier of: (1) The date 01 direct physical loss or damage; or (2) The end 01 the policy period. The most we will pay for each location under this Additional Coverage is $10,000 for the sum of all such expenses allsing out of Covered Causes of Loss occurring duro ing each sepal ate 1 2 momh period of Ihis policv. . . 6, Coveraga Extllnslons In addition to the limits 01 Insurance, you mey extend the Insurance prOVided by this policy as providad below, Except as otherwi.e provided. the following Extensions apply to properlY located In or on the building described in the Declarations or in the open (or on a vehicle) wilhin 100 feet of the described premises. a. Pa,sonal Property at Nawly Acqulrad Premlsas (1) You may axtend the insurance that ap- plies to Business Personal Propeny to apply to that propeny at eny premises you ecquire. The most we will pay for loss or dam- aga under this Extension is $10,000 at each premises, (2) Insurance under this Extension for each newly acquired premises will end when any of the following first occurs: (a) This policy expires. (b) 30 days expire ahar you acquire or begin construction et tha new premises; or (c) You repon values to us, We will cherge you additional premium for values reponed from the date you acquire the premises, b, Personal Property Off Premlsea You may extend the insurance that epplies to Business Personel Property \0 epply to covered Business Personal Property, other than money and securities, while It is in course 01 transit or temporarily at a prem- ises you do not own, lease or operate. The most we will pay for loss or damage under this Extension is $1,000. BP 00 02 06 B9 Copyright, insurance Services QHice, Inc., 1984, 1988 Page 5 of 19 0 c, Outdoor Property You may extend the insurance provided by this policy to epply to your outdoor fences. radio and television antennes, signs (othar then signs anachad to buildings). traes, shrubs and plants. including debns removal expense, caused by or resulting from any of the following causes of loss: (1) Fire; (2) Lightning; (3) Explosion; (4) Riot or Civil Commotion; 0' (6) Aircraft, The most we will pay for loss or damage under this Extension is Sl.000. but not more than $250 fm anyone tree, shrub or plant. d. Valueble Papers and Rocords . Cost of Research You may extend the insurance that applies to Business Personal Property to apply to your costs to research. replace or restore the lost information on lost or damaged valuable papers and records. including those which exist on electronic or mag. netic media, for which duplicates do not exist. The most we will pay under this Ex. tensIon is $1 ,000 at each described prem. Ises. 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 excludad regardless of any other cause or evsnt that contributes concurrently or In any sequence to the loss. a. Ordinance or Law The enforcement of any ordinance or law: (1) Regulating the construction, use or reo pair of any property; or (2) Requinng the tearing down of any property, including the cost of remov- Ing Its debns. b. Earth Movement (1) Any earth movement (other than sinkhole collapse), such as an earth. quake. landslide, mine &ubside"ce or earth sinking, rising or shifting. But if loss or damage by fire or explosion reo suits, we will pay for that resulting loss or damage. (2) Volcanic eruption, explosion or eHusion. But if loss or damage by fire, building glass breekege or volcanic ection results. we will pay for that reo suiting loss or damaga, Volcanic action means direct loss or damage rasulting from the eruption of a volcano whan the loss or damage is caused by: (a) Airborne volcanic blast or airborne shock waves; (b) Ash. dust, or particulate maner; or (c) LavG flow, All volcanic eruptions that occur within any 16B.hour period will constitute a single occurrence. Volcanic action does not include the cost to remove ash. dust or particulate maner that does not cause direct phys- ical loss of or damage to Covered Property , c, Governmental Action Seizure or destruction of property by order of governmental authority. But we will pay for acts of destruction or- dered by govarnmental authority and taken at the time of a fire to prevent Its spread, if the fire would be covered under this poticy. d, Nucloar Hazard Nuclear reaction or radiation, or radioactive contamination, however caused. But if loss or damage by fire results, we will pay for that resulting loss or damage, Page 6 of 19 SP 00 02 06 89 Copyright. Insurance Services QHice. Inc., 19B4. 19B8 -- to. -, . ~. ..., o '. .. Pow.r Fallur. The failure of power or other utility service .uppliad to the described premise., how- ever caused, if the failure occurs away from the des,cribed premises. But if 1085 or damage by a Covered Causa of Los. results, we will pay for that result- ing Iou or damage, f. War end Military Action (1) War, Including undeclared or civil war; (2) Wartike action by a miliwy force, in. cluding action in hindering or defend- ing against an actual or expected anack, by any government, sovereign or other authority using mititary per- sonnel or other agents; or (3) Insurrection, rebellion, revolution, usurped power, or action taken by governmental authority in hindering or defending against any of these. g, Water (1) Flood, surface water, waves, tides, tidal waves, overflow of any body of water, or their spray. all whether drrven by wind or not; (2) Mudslide or mudflow; (3) Water that backs up from a sewer or drain; or (4) Water under the ground .urface press- ing on, or flowing or seeping through: (a) Foundations, walls, floors or paved surfaces; (b) Basements, whether paved or not: or (c) Doors, windows or other openings. But if loss or damage by fire, explosion or sprinkler leakage results, we will pay for that resulting toss or damago. . .. 2, We will not pay for 1018 or damage caused by or resulting from any of tha following: " Electrical Apparatua: Artificially genar- aled electric curren~ inciuding electric arcing, that disturbs electrical device., ap- ptiances or wires. But if loss or damage by fire results, we will pay for that resulting loss or damage. b. Consequential lo....: Detay, loss of use or loss of market. c. Smoke, Vapor, Gas: Smoke. vapor or gas from agricultural smudging or indu.- trial operations. d. Malntc.nance Types 0; lo..: (1) Weer and tear; (2) Rust, corrosion, fungus, dacay, det.ri- oration, hidden or latent defect or any quality in propeny that causes it to damaga or dastroy itself; (3) Smog; (4) Senling, cracking, shrinking or expan- sion: (6) Insects, birds, rodents or other animals; (8) Mechanical breakdown. including rup- ture or bursting caused by cantrifugal force; or (7) The following causes of loss to per- sonel propeny: (a) Dampness or dryness of atmos- phare; (b) Changes in or extremes of temper- ature; or (c) Marring or scratching, But if loss or damage by the .specified causes of loss. or building glass breakage results, we will pay for that resulting loss or damage. BP 00 02 08 B9 Copyright, Insurance Services Qffice, Inc.. 19B4, 19BB Page 7 of 19 0 e, Steem AppuatuII: Explosion of steam bollars, st88m pipes, steam engines or steam turbines owned or leased by you, or operated under your control, But If loss or damaga by lire or combustion explosion results, we will pay for that resulting loss or damage. We will also pay for loss or damage causad by or resulting from the explosion of gases or fuel within the fur. nace of any fired vessel or wilhin the flues or passagos through which the gases of combustion pass, f. Frozen Plumbing: Water, other tiquids, powder or molten material thet leaks or flows from plumbing, heeting, air condi- tioning or other equipment (except fire proteclive systems) caused by or resulting from freezing, unless: (1) You do your best to maintain heat in the buitding or structure; or (2) You drain the equipment and shut off the supply If the heat is not maintained. g. Dishonesty: Dishonest or criminal act by you, any of your partners, employees, di- rectors, trustee., authorized representatives or anyone to whom you entrust the prop- erty for any purpose: (1) Acting atone or in collusion with oth. ers; or (2) Whether or not occurring during the hours of employment. This exclusion does not apply to acts of destruction by your employees; but theft by employees is not covered, h, False Pretense: Voluntary parting with any property by you or anyone else to whom you have entrusted the property if induced to do so by any fraudulent scheme, trick, device or false pretense. I, Exposed Property: Rain, snow, ice or sleet to personal property in the open, . ;.. ~ j, Collapse: Collapse, except as provided in the Additional Coverage for Collapse. But if loss or damage by a Covered Cause of Loss results at the described preMises, we will pay for that resulting loss or damage. k. Pollution: We will not pay for loss or damage caused by or resulting from the release, discharge or dispersal of 'pollutants' unless the release, discharge or dispersal is itself caused by any of the 'specified causes of loss.' But if loss or damege by the 'specified causes of loss' results, we will pay for the resulting dam- age caused by .the 'specified cause of loss.' 3, We will not pay for loss or damage ceused by or resultin-g from any of the following. But If loss or damage by e Covered Cause of Loss results, we will pay for that r!Sultmg loss or demage. a. Weather Conditions: Weather condi- tions. But this exclusion o.,ly eppties if weather conditions contribute In eny way with a cause or event excluded in para- graph 1, above to produce the loss or damage, b, Acts or Decisions: Acts or decisions, including the failure to act or decide, of any person, group, organization or gov- ernmental body. c. Negligent Work: Faulty, inadequate or defective: (1) Planning, zoning, development, sur- veying, siting; (2) Design, specifications, workmanship, r~pair, construction. renovation, re- modeling, grading, compaction; (3) Materials used in repair, construction, renovstion or remodeling; or (4) Maintenance; of part or all of any property on or off the described premises, Page 8 of 19 Copyright, Insurance Services Qffice, Inc" 1984, 1988 BP 00 0206 B9 ,. "'. .. . o l' · 4, Business Income end Extre Expense Ex- clusions, We will not pey for: e, Any Extre Expense, or increase of Business Income loss, ceused by or resulting from: (1) Delay in rebuilding, repairing or replac- Ing the property or resuming "oper- ations: due to interference at the location of Ihe rebuilding, repair or reo placement by strikers or other persons; or (2) Suspension, lapse or cancellation of eny license. leese or cortract. But if the suspension, lapse or cencellation is di- rectly cell sed by the suspension of "operations: wa will cover such loss that affects your Business Income dur- ing the "period of restoration." b. Any other consequential loss, C, LIMITS OF INSURANCE 1, The most we will pay for loss or damage in anyone occurrence is the applicable Limit of Insurance shown in the Declarations. 2, The most we will pay for loss of or damage to outdoor signs anached to buildings is $1.000 par sign in anyone occurrence, 3, The limits epplicable to the Coverage Exten- sions and the Fire Departmant Service Charge and Pollutant Clean Up and Removal Addi- tional Coverages are in addition to the Limits of Insurance. 4, Building Limit - Automatic Increase e, The Limit of Insurance for Buildings will automatically increase by the annual per- centage shown in the Declarations. b, The amount of increase will be: (1) The Building limit that applied on the most recent of the policy inceptIon date, the policy anniversary date, or any other policy change amending the Building limit, times 6 .. BP 00 02 06 B9 (2) The percentege of ennuel increase shown in the Decleretions, upreued as e d~cimel (exemple: B% is ,OB), times (3) The number of deys since the begin- ning of the current policy yeer of the effective dete of the most recent poticy change amending the Building limit, divided by 3B5. Example: If: The epplicable Building timit is $100,000. The annual percentage increase is B%, The number of days since the beginning of the policy year (or last policy change) is 146. The amount of increase is $100,000 x .OB x 146 + 365 - $3,200, 6, Buslneee Personal Property Limit - Sea- eonal Incraase a, The Limit of Insurance for Business Per- sonal Property will automatically increase by 25% to provide for seasonal veriations. b. This increese will apply only if tha limit of Insurance shown for Business Personal Property in the Declarations is at least 100% of your average monthly values dur- ing the lesser of: (1) The 12 months immediately preceding the date the loss or damage occurs; or (2) The period of time you have been In business as of the date the loss or damage occurs, D. DEDUCTIBLES 1, We will not pay for loss or damage in anyone occurrence until the amount of loss or demage exceeds the Deductible shown in the Decle- rations. We will then pay the emount of loss or damage in excess of the Deductible up to the applicable Limit of Insurance. 2, Regardless of the amount of the Deductible. the most we will deduct from any loss or damage under all of the following Optional Coverages in anyone occurrence is $250: e, Money and Securities: b, Employee Dishonesty: Copyright. Insurance Services Qffice, Inc., , 9B4. 19BB Pege 9 of 19 0 c, Exte,ior G,ade Floor Glass; and d. Outdoor ~Igns. But this $250 deductible will not increase the deductible shown in the Declarations. This deductible will be used to satisfy the require- ments 01 the deductible in the Declerations. 3, No deductible applies to the lollowing Add,- tional Coverages: a, Fire Department Service Charge; b. Business Income; and c. Extra Expense. E. PROPERTY LOSS CONDFTlONS 1, Abendonment The,e can be no abandonmant 01 any property to us. 2, Appraisal " we and you disagree on the amount of loss, either may make written damand 10' an ap- praisal 01 the loss. In this event, each party will select a competent and impartial ap- praiser. The two appraisars will selact an umpire, " thay cannot agree, either may re- quest that selection be made by a judge 01 a court having jurisdiction. The appraisers will state separately the amount 01 loss. " they lail to agree, they will submit their differences to Ihe umpire. A decision agreed to by any two will be binding. Each party will: a, Pay ils chosen appraiser; and b. Bear the other expenses 01 the appraisal and umpire equally. II there is an appraisal. we will still retain our right to deny the claim. 3. Duties In The Event Of Loss Or Damage You must see that the following are done in lhe event of loss or damage to Covered Prop. erty: a, Notify tha police if a law may have been broken, b. Give us prompt notice of the loss or dam- age. Include a description of the property involved. c. A$ soon as possible. give us a description of how. when and where the loss or dam- age occurred, d, Take all reasonable steps to protect the Coverad Property from lurther damage by a Covered Cause of Loss. If feasible, set ths damaged property aside and in the best possible order for examination, Also keep a record of your expenses for omsrgsncy and temporary repairs. for consideration in the settlement of the claim, This will not increase the limit of insurance, e, At our request, give us complete Invento- ries of 'the damaged and undamaged property, Include quantities. costs, valufls and amount of loss claimed, f. Permit us to inspect the property and re- cords proving the loss or damage. Also permit us to take samples of damaged property for inspection, testing and analy- sis, g, " requested. permit us to question you under oath at such times as may be rea- sonably required ebout any matter relating to this insurance of your claim. including your books and records, In such event, your answers must be signed. h, Send us a signed, sworn statament of loss containing the information we request to investigate the claim, You. must do this within 60 days alter our request. We will supply you with the necessary forms. i, Cooperate with us in the investigation or settlement of the claim. j, Resume all or part of your .operatlons. as quickly as possible, Page 10 of 1 9 Copyright, Insurance Services Qlfice, IlIc.. 19B4. 19BB BP 00 02 06 B9 - '. '. .'. . r:J CJ . 4, Legel Action Agalnet Ue No one m8Y bring a legal 8ctlon against us under this insurance unless: a, There has been full compliance wilh all 01 the terms 01 this insur8nce; end b, The action is brought within 2 years alter the date on which the drrecl physical loss or damage occurred, &, Limitation - Electronic Media end Re- cord. We will not pay lor eny loss 01 Business In. come c8used by direct physical loss of or damage to Electronic Media end Records alter the longer 01: a, 60 consecutive days 'rom the date of direct physicelloss or damage; or b, The period, beginning wilh the dale 01 di- rect physical loss or damage, necessary to repeir, rebuild or replace with reasoneble spaed and similer quality, other propeny et the described premises due to loss or damage ceused by the seme occurrence, Electronic Media and Records are: (1) Electronic data processing, recording or storage media such as films, tapes, discs, drums or cells; (2) Data stored on such media; or (3) Programming racords use lor electronic data processing or electronically controlled equipment. Example No, 1: A Covered Cause 01 Loss damages a computer on June 1, It takes until September 1 to re- place the computer, and until October 1 to restore the data that was lost when the dam- age occurred. We will only pay lor the Bus;- ness Income loss sustained during the period June 1 - September 1. Loss during Ihe period September 2 - October 1 is nol covered. .. BP 00 02 06 B9 Example No.2: A Covered Cause 01 Loss results in the 1058 01 data processing programming records on August 1, The records are replaced on October 15, We will only pay lor the Business Income loss sustained during the period August 1 - September 29 (60 consecutive days). Loss during the period September 30 . October 15 is not covered. 6, Losa Payment In the event 01 loss or demage covered by thiS policy: a. At our option. we will either: (1) Pay the value 01 lost or damaged prop- eny; (2) Pay the cost 01 repairing or replacing the lost or damaged propeny; (3) Take all or any pan 01 the propeny at an agreed or appraised value; or (4) Repair. rebuild or replace the propeny with other propeny of like kind and quality. b. We will give notice 01 our intentions within 30 days after we receive the sworn state- ment 01 loss, c, We will not pay you more than your fi- nancial interest In the Covered Propeny, d. We will determine the value of Covered Propeny as follows: (1) At replacement cost (without de- duction lor depreciation), except as provided in (2) through (7) below. (e) You may make a clelm for loss or damege covered by this insurance on en actual cash value basis in- stead 01 on a replacement cost ba- sis, In the event you elect to have loss or damage settled on an actual cash value besis. you may still make a claim on a replacement cost basis if you notify us 01 your intent to do so within 180 days alter the 1058 or damage, Copyright, Insurance Services QHice, Inc.. 1984, 19B8 Page 11 of 19 0 (b) We will not pey on e replecement cost basis lor any loss or damaga: (I) Until tha lost or dsmaged prop- Ilrty II actually repaired or re- placed; and (II) Unlels the repairs or replacement are made ss soon as reasonably possible altar the loss or damage. (e) Wa will not pay more for loss or damaga on a replacement cost basis than the least 01: (I) The cost to replace, on the same premises, the lost or damaged property with other property: I, 01 comparable material end quality; and II, Used lor the same purpose; or (II) The amount you actually spend that is necessary to rspalr or reo place the lost or damaged prop. erty. (2) II thp . Actual Cash Value. Buildings' option appties, as shown in the Decla- rations, paragraph (1) above does not apply to Buildings. Instead, we will determine the value of Buildings at ac. tual cash value, (3) The following property et actual cash value: (a) Used or second-hand merchandise held in storage or for sale; (b) Property of others; (c) Household contents, except per. sonal property in apartments or rooms furnished by you as landlord; (d) Manuscripts; (a) Works of art, antiques or rare arti- cles, including etchings, pictures, statuary, marbles, bronzes, porcelains and brie-a-brae, (4) Glass et the cost of replecement .vith lefety glazing material il required by law. (6) Tenants' Improvements and Benerments at: (a) Replacement cost il you make re. pairs promptly. (b) A proportion 01 your original cost if you do not make repairs promptly. We will determine the proportionate value as follows: (I} Multiply the original cost by the number 01 days Irom the loss or damage to the expiration 01 the le~se; and , (II) Divide the amount delermined in (i) above by the number of days Irom the installation 01 improve- ments to the expiration 01 the lease, If your lease contains a renewal op- tion, the expiration 01 the renewal option period will replace the expi- ration 01 the lease in this procedure, (e) Nothing if others pey for repairs or replacement, (6) Valuable Papers end Records, including those which exist on electroni~ or magnetic media (other than prepack- aged soltwere programs), at the cost 01: (a) Blank materials for reproducing the records; and (b) Labor to transcribe or copy the re- cords, (7) Applicable only to the Optional Cover- ages: (a) Money at its lace value; and (b) Securities at their value at the ctose 01 business on the day the loss is discovered. Page 1 2 0119 Copyright, Insurance Services QHice, Inc.. 1984, 1988 B P 00 02 06 89 - ~'. ~. ,. o I . e, Our payment for loss of or damege to per. sonal property of others will only be for the account of the owners of the propeny. We may adjust losses with the owners of 10Sl or damaged property if olher than you. If we pay the owners, such payments will satisfy your claims against us for Ihe own. ers' property. We will not pay Ihe owners more than therr financial ,"terest In the Covered Property. t, We may elect te defend you agdlnsl SUlt~ arising from claims of owners 01 property. We will do this at our expense. g, We will pay for covered loss or damage within 30 days shrr we receivi.. tnP. 5\..3rn statement of loss, if: (1) You have complied with all of the lerms of this policy; and (2) (a) We have reached agreement wllh you on the amount of loss; or (e) An appraisal award has been made. 7, Recovered Property If either you or we recover any property aher loss settlement, that party must give the other prompt nOlice. At your option, you may retain the propeMy. But then you must return to us the amount we paid to you for the property. We will pay recovery expenses and the ex. penses to repair the recovered property, sub. jectto the Limit of Insurance. B, Resumption of Operations We will reduce the amount of your: a. Business Income loss, other than Extra Expense. to rhe extent you can resume your .operations,. in whole or In oart, by uSing damaged or undamaged property (including merchandise or stock) at the described premises or elsewhere. b, Extra Expense loss to the exlent you can return "operations" to normal and discon- tinue such Extra Expense. . . BP 00 02 06 89 9. Vacancy If the building where loss or damage occurs has been vacant for more than 60 consecullve days before that loss or damage, we WilL a. Not pay for any loss or damage caused by: (1) Vandalism: (2) Sprrnkler leakage, unless you have protected Ihe system against freezing; (3) Building glass breakage; (4) Water damage; (6) Theh; or (8) Attempted Theh. I;; RdU~Cd the Jr:lOu"; '^. would otherwise pay for the loss or damage by 1 5%. A building is vacant when It does not contain enough business personal property to conduct custlJmar;' "oD3ratlonc;," Buildings under construction are not consid- ered vacant, -- F, PROPERTY GENERAL CONDITIONS 1, Control of Property Any act or neglect of any person other than you beyond your direction or control will not Hffectthis Insurance. The breach of any condillon of this Coverege Form at anyone or more localions will not affect coverage at any location where, at the time of loss or damage, the breach of condi- tion does not e,<i!it. 2. Mortgage Holders e, The telm "mortgage holder" includes trus- tee, b, We will pay for covered loss of or damage to buildings or structures to each mortgage holder shown In the Declarations in their order of precedence, as interests may ap- pear, c. The mortgage nolder has the right to re- ceive loss payment even if the mortgage holder has started loreclosure or similar action on the building or slructure. Copyright. Insurance Services Qffice, Inc.. 1984, 1988 Page 130f19 0 d, If we deny your cleim because of your acts or beceuse you have failed to comply with the lerms of this policy, the mortgage holder will still hava the right to receive Iou payment if the mortgage holder: (1) Pays eny premium due under this policy al our request if you have failed to do so; (2) Submits a signed, sworn statement of loss within 60 days after receiving no- tice from us of your failure to do so; and (3) Has notified us of any change in own- ership, occupancy or substantial change in risk known to the mortgage holder, All of the terms of this policy will then ap- ply directly to the mortgage holder, e. If we pay the mortgage holder for any loss or damage and deny payment to you be- C~UI8 of your acts or because you have failed to comply with the terms of this policy; (1) The mortgage holder's rights under the mortgage will be transferred to us to the extent of the amount we pay; and (2) The mortgage holder's right to recover the full amount of the mortgage hold- er's claim will not be impaired. At our option, we may pay to the mortgage holder the whole principal on the mortgage plus any eccrued interest. In this event, your mortgage and note will be transferred to us and you will pay your remaining mortgage debt to us. f. If we cancal this policy, we will give writ- ten notica to the mortgage holdar at least: (1) 10 days before the effective date of cancellation if we cancel for your non. payment of premium; or (2) 30 days before the effective date of cancellation if we cancel for any other reason. Page 14 of 19 g, If we elect not to renew this policy, we will give written no lice to the mortgage holder et least 10 days before the expira- tion date of this policy, 3, No Benefit to Bellee No person or organization, other than you, having custody of Covered Property will ben- efit from this insurance. 4, Polloy Period. Coverage Territory Under this form: a, We cover loss or damage commencing: (1) During the policy period shown in the Declarations; and (2) Within the coverage territory or, with respect to property in transit, while it is between points in the coverage terri- tory. b, The coverage territory ia: (1) The United States of America (includ- ing its territories and possessions); (2) Puerto Rico; and (3) Canada, G. OPTIONAL COVERAGES If shown as appticable in the Declarations, the following Optional Coverages also apply, These coverages are subject to the terms and conditions applicable to property coverage in this policy. except as provided below, 1, Outdoor Signs a. We will pay for direct physical loss of or damage to all outdoor signs at the de- scribed premises: (1) Owned by you; or (2) Owned by others but in your care, custody or control. b, Paragraph A,3" Covered Causes of Loss, and Section B.. Exclusions, do not apply to this Optional Coverage. except for; (1) Paragraph B ,1.c.. Governmental Action; (2) Paragraph B.1,d., Nuclear Hazard; and (3) Paragraph B.1,f.. War and Military Action. Copyright, Insurance Services Qffice, Inc.. 1984, 1988 BP 00 02 06 89 ,. . ... o I. I c, We will not pay for loss or damage caused bv or resulting from: (') Wear and tear; (2) Hidden or latent defect; (3) Rust; (4) Corro.ion: or (5) Mechanical brea~down. d, The mosl we will pal' tor 10.. or damage In anyone occurrence is the Limit of In- surance for Outdoor Signs shown in the Declarations, e. The provisi01s of thi! Optional Coverage SL;;J~rsode ;)11 other rpfelences to outdoor signs in this policy. 2, Exterior Grade Floor Glass a, We will pay for direct phvsical los. of or damaga to i111 I3xteriol" grade fluor and basement glass, Including all letlerlng and ornamentation, located at the described premises and; (1) Owned by you; or (2) Owned by others but In your care, cuslodv or control. b, We will al.o pay for necessary: (1) Expenses Incurred to put up temoorary plales or board up openings; (2) Repair or replacemenl of encasing frames; and (3) Expenses incurred to remove or replacp obstructions. c, Paragraph A.3.. Covered Causes of Loss, and Seclion B., Exclus,ons, do not applv to this Ootional Coverage. except for: (1) Paragraph B.1 .c.. Governmental Acr,on: (2) Paragraph B.1.d., Nuclear Hazard, and (3) Paragraph B.1.1., War and Mill1ary Actinn, B P 00 02 06 89 d. We will not pey for loss or damage caused bv or resulting from: (1) Wear and lear: (2) Hidden or lalent defect; (3) Corrosion: or (4) Rust e, ThiS Optional Coverage supersedes all limitations in this pOlicv that applv to ax. tericr grade floor glass, 3, Money and Securities 0, We will pav for loss of money and securi- ties used in your business while at a bank or MVlng5 institution, within your living quarters or the living quarters of your partners or any employee having use and custody of the property, at the described premises. or in transit between any of these places, resultinR directly from: (1) Thell, meaninR any act of stealing; (2) Disappearance; or (3) Deslruction, b, In addition to the Limitations and Exclu- sions applicable to property coverage, we will no, pay for loss: P) Resulting from accounting or arithme- tical errors or omissions; (2) Due to the giving or surrendering of propertv in any exchanRe or purchase; or (3) Of properlY conlained in any money- operated device unless the amount of money deoosited in it is recorded by a continuous rAcnrdinR instrument in the device, c, The most we will oay for loss in anyone occummce is; (1) The limit shown In the Declarations for Inside the Premises for money and se- curilies while: (a) In or on the described premises; or (b) Within a bank or savings institution; and Cooyright, Insurance Services Qlfica, Inc., 1984, 1988 Page 15 of 19 0 - .-~... (2) The limit shown in the Declarations for OULside the Promises for money and securities while anywhere else. d, All loss: (1) Caused by one or more persons: or (2) Involving a single act or series of reo lated acts; IS considared one occurrence, e, You must keep records of all monay and securities so we can verify the amount of any loss or damage, 4, Employee Dishonesty e, We will pay for direct loss of or damage to Businass Personat Property, including money and securities, resulting from dis. honest acts committed by any of your em- ployees acting alone or in collusion with other persons (except you or your panner) with the manifest intent to: (1) Cause you to sustain loss or damage; and also (2) Obtain financial benefit (other than salarias, commissions, fees, bonuses, promotions, awards, profit sharing, pensions or other employee benefits earned in the normal course of em. ployment) for: (e) Any employee; or (b) Any other person or organization. b. We will not pay for loss or damage: (1) Resulting from any dishonest or crimi. nal act that you or any of your panners commit whether acting alone or in collUSion with other persons. (2) The only proof of which as to its exisl' ence or amount is: (a) An inventory computation; or (b I A profit and loss computation. c, The most we will pay for loos or damege in any ona occurrence is the Limit of In- surance for Employee Dishonesty shown in the Daclaretions. d, All loss or damage: (1) Causad by one or more persons; or (2) Involving a single act or series of reo lated acts; is considered one occurrence, e, We will pay only for loss or damage you sustain through ects committed or svents occurring during the Policy PSllod, Re. gardlass of the number of years this policy remains in force or the number ot premi- ums paid, no Limit of Insurance cumulltes from year to year or period to psriod, f, This Optional Coverage does not apply to any employea immedilt'lly upon discovery by: (1) You; or (2) Any of your panners, officers or direc- tors not in collusion with the employee; of any dishonest act committed by that employee before or after being hired by you. g, We will pay only for covered loss or dam- age discovered no later than one Yair from the end of the Policy Period, h, If you (or any predecessor in intarest) sustainad loss or damaga during the psriod of any prior insurance that you could have recovered under that insurance exceptthlt the time within which to discover 1011 or damage had expired, we will pey tor it under this Optional Covarage, provided: (1) This Optional Coverage became effec- tive at the time of cancallation or ter- mination of the prior insurance; and Page160f19 Copyright. Insurance Services Qffica, Inc.. 1984, 1988 B P 00 02 06 89 - .- . ':l .. Cl ~ Q) (2) The loss or damage would hava been covered by this Opllonel Coverege had it been in eHec! when the act~ or events causing the loss or damage were com. mined or occurred. I. The insurance under paragraph h. above is pan of, not in addition to, the limit of In- surance applYing to Ihls Opllonal Coverage and IS limited to the lesser 01 the amounl recoverable under: (1) This Optional Coverage as of its effec. tive dale; or (2) The prior insuranca had it remained in eHect. 5, Mechanical Braakdown a, We will pay for direct damage to Covered Property caused by an Accident to an Ob- ject. The Oblect mUSI be: (1) Owned by you or in your care, custody or control; and (2) At the described premises. b, Accident means a sudden and aCCidental breakdown of the Object or a part of Ihe Object. At the time the breakdown occurs, it must manifest itself by physical damage to the Object that neceSSitates repair or replacement. c, None of the following is an Accident (1) Depletion, deterioration. corrosion or erosion; (2) Wear and tear; (3) Leakage at any valve, fonlnR, shaft seal, Rland packing, joint or connection; (4) Breakdown of any vacuum tube. gas lube or brush; (5) Breakdown of any eleclronic com puler or electronic data processing equIp- ment; (8) Breakdown of any structure or founda. lion supporting the Object or any of Its parts; (7) The functioning of any lalety or pro. tectlve deVice; or (8) The explOSion 01 gases or 'uol within Ihe furnace 01 any Oblecl or Within the lIues or passages Ihrough which the gases 01 combustion pass. d, Object means any 01 the lollowlng equip- ment: (1) Boller and Pre,sure Vessels: (a) Steam heating boilers and condensate return tanks used with them; (b) Hot water healing boilers and ex- pansion tanks used with them; (c) Hot water supply boilers; (d) Other fired or unljred vessels used for maintenance or service of the discarded premises but not used for processing or manufacturing; (e) Steam boiler piping, valves, finings, traps and separators. but only if they: (I) Are on your premises or between parts 01 your premises; (i1) Contain steam or condensate of steam; and (Iii) Are not part of any other vessel or apparatus; (f) Feed water piping between any steam boiler and a leed pump or injector, (2) Air Conditioning Units. Any air condi. tioning unit Ihat has a capacilY of 60,000 Btu or more, including: (a) Inductors, conveclors and coils that make t"e of a refrigerant and form part. d cooling, humidily control or s:.dce heating system; BP 00 02 06 B9 COP\';IRht, Insurance Services Qffice. Inc., 1984, 1988 Page 17 01 19 0 (b) Interconnecting piping, valves and finings containing only a refllgerant, water, brine or other solution: (c) Vessels heated directly or indirectly that (I) Form part of an absorption type system; and (II) Function as a generator, regen- erator or concentrator; (d) Compressors, pumps, fans and blowers used solely with the system together with their driving electric motors: and (e) Control equipment used solely with the system, e. Object does not mean: (1) As Boiler and Pressure Vessals: (a) Equipment that is not under interal vacuum or internal pressure other than weight of contents; (b) Boiler senings: (c) tnsulating or refractory material: or (d) Electrical, r~ciprocating or rotating apparatus within or forming a part of the boiler or vessel. (2) As Air Conditioning Units, any: (a) Vessel, cooling tower, reservoir or other source of cooling water for a condenser or compressor, or any water piping leading to or from that source; or (b) Wiring or piping leading to or from the unit. f, We will not pay for an Accident to any Object while being tested. g, Suspension Whenever an Object is found to be In, or exposed to, a dangerouS condition, any 01 our representatives may immediately sus- pend the Insurance against loss from an Accident to that Object This can be done by delivering or mailing a written notice of suspension to: (1) Your last known address: or (2) The address where the Object Is 10' cated. If we suspend your insurance, you will get a pro rata refund of premium, But the suspension will be effective even if we have not yet made or offered a refund. H, PROPERTY DEFINITIONS 1, "Operations" means your business activities occurring at the described premises. 2, "Period of Rastoratlon" means the period of time that: a, Begins with the date of direct physical toss or damage caused by or resulting from any Covered Cause of Loss at the described premises: and b, Ends on the oate when the property at the described premises should be repaired, reo built or replaced with reasonable speed and similar quatity. "Period of restoration" does not include any increased period required due to the enforce. ment of any ordinance or law that: (1) Regulates the construction, use or reo pair, or requires the tearing down of any property: or (2) Requires any insured or others to test for, monitor, clean up, remove, contain, treat, detoxify or neutratize, or in any way respond to or assess the effects of "pollutants." The expiration date of this policy will not cut short the "period of restoration." Page 1 El of 19 COPYllghl. Insurance Services Qffice, Inc., 19B4, 1988 B P 00 02 06 89 . . -G o . . . BUSINEssdwNERS COMMON POLICY CONDI.TIONS All coverages of this polley are subJect to the fOllowing conditions, A. CANCELLATION (6) Failure to: 1. The first Named Insured shown In the Decla. (a) Furnish necessary heat. water. rations may cancel this policy by mailing or sewer service or electricity for 30 delivering :0 us advance. wrinen notice of consecutive days or more. except cancellation, during e period of seasonal unoc- 2. We may cancel this policy by mailing or de. cupency; or tiverlng to the first Named Insured wrinen (b) Pay property taxes that are owing notice uf cancellation at le85t: and have been outstanding for more f ff I than one veer following the' date 8, 6 days be ore the e ect ve date of cancel. due, except that this provision will lotion if eny one of tho following condl- not epply where you are In a bone tlons exists at any building that is Covared fide dispute with the tsxlng author- Property In this policy, .Ity regarding psymant ohuch taxes, (1) The, bduiledolng has been vacantt.or udnoc. b. 10 days before the effective date of can- cupla or more consecu Ive ays, cellatlon If we conca I for nonpaVln.ant of This does not spply to: premium, . . : (a) Seasonal unoccupancy; or e. 30 days before the effective dste of can- (b) Buildings In thQ course of con- cellation if we cancel for any other teason, struction. renovation or addition, 3. We will mail or deliver our notic~ to the .fIrst Buildings with 66% or more of the Named Insured's last maiting sddress known rental units or floor area vacant or un- to us, occduPieh~ are ~oi nsidered unoccupied 4, Notice of cancellation will state the effective un er t IS prtlvls on, date of cancellation, The policy. period will (2) After damage by 8 covered cause of end on that date, loss, permanent repairs to the building: 6. If this poticy is cancelled. we will send the first (a) Have not staned, and Named Insured. any premium refund due, If we cancel, the refund will be pro rata, If the (b) Have not been contracted for, first Named Insured cancals. the refund may within 30 days of Initial payment of be less than pro rata, The cancellation will be loss. effective even If we have not made or offered (3) The building has: a refund, (a) An outstanding order to vacate; 6, If notice is mailed, prool 01 mailing will be sufficient proof of notice, (b) An outstanding demolition order; or B. CHANGES (e) Been declared unsafe by govern. mental eUthority, This policy contains all the egreements between you and us concerning the insurance efforded. (4) Fixed and salvageable items have been The lirst Named Insured shown in the Declsra- or are being removed Irom the building tions is authorized to make changes in the terms and are not being replaced, This does of this policy with our consent. This policy's not apply to such removal that is nee. terms can be smended or waived only by essary or incidental to any renovation endorsement issued by us and made a pan of this or remodeting, policy, BP 00 09 06 89 Copyright, Insurance Services .Q.Hice, Inc.. 1984, 19B8 Page 1 of 3 0 ,. '. C. CONCEALMENT. MISREPRESENTATION' .OR FRAUD This policy Is void In any casa ollraud by yau as it relates to this poticy at any tlma, It Is also void II you or any other Insured, st any time. IOlen- "tlonally conceal or misrepreaant a material Isct . concerning: ,. - . 1. This policy; . 2. The Covered Property; 3. Your Intarestln the Covered Property; or 4. A claim under this policy, D. EXAMINATION OF YOUR BOOKS AND . RECORDS , W.e may examine and audit your books and re- cords as they relate to this policy at any time during the policy period and up to three years , afterward, . E. INSPECTIONS AND SURVEYS , We have. the right but are not obligated to: 1. Make inspections and surveys at any time; 2. Give you reports on the conditions we find; . and .. 3. Recommend changes. Any Inspections, surveys, reports or recommen- dations relate only to insurability and the premi- ums 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 pubtic, And we do not warrant that conditions: . 1, Are sille or healthful;' or 2. Comply with taws, regulations, codes or standards, This condition appties not only to us, but also to any rating, advisory, rate service or similar organ.' izatlon which makes insurance inspections, sur- veys, reports or recommendations. F. INSURANCE UNDER TWO OR MORE COVERAGES If two or more of this poticy's coverages apply to the same loss or damage, we will not pay more than the actual amount of the loss or damaga, Go' LIBeRALIZATION . If we adopt any 'r~vlslon th~t. ~~uld broadan the coverage under this policy without additional premium within 46 days prior to or during the policy period, the broadened coverege will 1m' mediately apply to,t!!is policy, H. OTHER INSURANCE 1, If there Is other Insurance covering the same loss or damage, wa will pay only lor the amount of covered 1018 or damage In excess of the amount due from that other Insurance, whether you can collect on It or no!. But we will not pay more than the applicable Limit of Insurance, .,' 2. Buslne.. Liability Coverage Is excess over any other insurance that Insures for diract phYSical loss or damage, 3. When this insurance Is excess, we will have no duty under BusineSS L1ebllity Coverage to defend any .clalm or. "suit" that any other Insurer has a duty to defend, If no other Insurer delends, we will undertake to do ao; but we will be entitted to the insured's rights against all those other Insurers, I. PREMIUMS 1, The first Named Insured shown in the Decla- rations: a. Is 'responsible for, the payment of all pre- .- miums; and b. Will be the payea lor any return premiums .'..we pay, . . 2. The premium shown In the Declarations was computed based on rates in effect at the time the polley was issued, On each renewal, con- tinuation or anniversary of the effective date , of this polley, we will compute the premium In accordance with our rates and rules then In effect. 3, With our consent, you may continue this pol- icy in force by paying a continuation premium for each successive one-year period, The pre- mium must be: a. Paid to us prior to the anniversary date; and Page 2 of 3 Copyright, tnsurance Services Qffice, Inc.. 1984, 1988 8P 00 09 06 89. , e: ,j" .~ " '"5. o r . , -', THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. PENNSYLVANIA CHANGES- CANCELLA liON AND NONRENEWAL This endorsement modifies Insurance provided under the following: BOILER AND MACHINERY COVERAGE PART BUSINESSOWNERS POLICY COMMERCIAL AUTO COVERAGE PART COMMERCIAL CRIM;; COVERAGE PART- COMMERCIAL GENERAL LIABILITY COVERAGE PART COMMERCIAI_ PROPERTY COVERAGE PART COMMERCIAL INLAND MARINE COVERAGE PART FARM COVERAGE PART LIQUOR LIABILITY COVERAGE PART POLLUTION LIABILITY COVERAGE PART PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART . This endorsement does not apply to coverage provided for employee dishonesty (Coverage Form A) or public employee dishonesty (Coverage Forms 0 and Pl. A. The CANCELLATION Common Policy Condition is replaced by the following: CANCELLATION 1, The first Named Insured shown in the Decla- rations may cancel this poiicy by writing or giving notice of cancellation. 2, CANCELLATION OF POLICIES IN EFFECT FOR LESS THAN 60 DAYS We may cancel this policy by mailing or de- livering to Ihe flrsl Named Insured written notice of cancellation at least 30 days before the effective date of cancellalion. 3, CANCELLATION OF POLICIES IN EFFECT FOR 60 DAYS OR MORE Ir this policy has been in effect ror 60 days or more or ir this policy is a renewal or a policy we issued, we may cancel th,s policy only ror one or more 0;' the following reasons: 3. You have made a material misrepresen- talfon which affects the insurability or the risk. Notice or cancellation Will be mailed or deiivered at least 1S days be'ore the efrective date or cancellation. b. You have failed to pay a premium when due, whether the premium is payable di- rectly to us or our agenls or indirectly un- der a premium finance plan or extension of credit. Notice or cancellation will be mailed at least 1S days be'ore the effec- tive date or cancellation. c, A condition, factor or loss experience ma- terialto Insurability has changed substan- tially or a substantial condition, factor or loss experience material to insurability has become known during the policy pe- riod. Notice or cancellation will be mailed or delivered at least 60 days before the effective date of cancellation. d, Loss or reinsurance or a substantial de- crease in reinsurance has occurred, which loss or decrease, at the time of cancella- tion, shall be certified to the Insurance Commissioner as directly affecting in- rorce policies. Nolice of cancellation will be mailed or delivered at least 60 days berore the erfeclive date or cancellation. e, Malerial railure to comply with policy terms, conditions or contractual duties. Notice of cancellation will be mailed or delivered al least 60 days before the ef- fective date of cancellation. I, Other reasons that the Insurance Com- missioner may approve. Notice of can- cellation will be mailed or detivered at leasl 60 days berore the effective date of cancellation. This policy may also be cancelled from inception upon discovery that the policy was obtained through fraudulent statements, omissions or concealment of facts material to the acceptance or the nsk or to the hazard assumed by us. IL 02 46 06 89 CopYllght, Insurance Services Office, Inc., 1988, 1989 COPYllghl, ISQ Commercial Risk services, Inc.. 1986, 1989 Page 1 of 2 0 . POLlCYNUM8ER: BOP 01 05 41 . , . ' " .. 8USINESSOWNERS ': ,~,' THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. . HIRED AUTO A~iD NON-OWNED AUTO LIABILITY " . Jo'. ' ,... .. , ' ,', "'. This endor:;ement modifies Insurance provided under the following: . ';. 8USINESSqWNERS POLICY SCHEDULE Coverage Hired Auto Liability Non.Owned Auto Liability A. Insurance IS provided only for those coverages tor whICh a speCifIC premium char6e IS shown In the Declarations or In the Schedule. I. HIRED AUTO LIABILITY The insurance provided under the 8usines. sowners Liability Coverage Form, Paragraph AI. 8usiness Liability, applies to "bodily In. JUry" or "property damage" arrslng out of the maintenance or use of a "hired auto" by you or your employees in the course of your business. 2. NON.OWNED AUTO LIABILITY The Insurance provided under the Busines. sowners Liability Coverage Form", Paragraph AJ. BUSiness Liability, applies to "bodily in. lury" or "property damage" allSlng out of the use of any "non.owned auto" In your bUSiness by any person other than you. B. For Insurance provided by thiS endorsement only: 1. The exclUSions, under the Buslnessowners Li. ability Coverage Form, Paragraph BJ, Applica. ble to BUSiness Liabltity Coverages. other than exclUSions a.. b.. d.. I. and I. and the Nuclear Energy Liability ExclUSion, are deleted and reo placed by the follOWing: a. "Bodily Inlury": (1) To an employee of the Insured arrslng out of and In the course of employ. ment by the Insured: or (2) To the spouse, child. parent. brother or sister of that employee as a conse. quence at (I) above. ThiS exclUSion applies. (al Whether the Insured may be liable as an employer or In any other capacity; and (b) To any obhgatlon to share damages With or repay someone else who must pay dam.lges because of Inlury. BP 04 04 0187 .' Additional Premium c INCL. This exclUSion does not apply to: (I) Liability assumed by the insured un. der an "insured contract"; or (Ii) "80dily Injury" arrsing out of and in the course of domestic employment by the insured unless benefits for such injury are in whole or in part ei. ther payable or required to be pro. vided under any workers campen. satlon law. b, "Property damage" to: (1) Properly owned or being transported by, or rented or loaned to the insured; or (2) Property in the care, custody or con. trol of the insured, 2. WHO IS AN INSURED in the Businessowners liability Coverage Form, Paragraph C, is reo placed by the follOWing: Each of the following is an insured under this endorsement to the extent set torth below: a. You; b, Any other person uSing a "hired auto" With your permission: c, For a "non.owned auto," any partner or executive oHicer of yours, but only while such "non.owned auto" is being used In your bUSiness: and d, Any other person or organrzatlon, but only lor their liability because of acts or omls. slons of an Insured under a., b. or c, above. None of the follOWing IS an insured: (1) Any person engaged In the bUSiness of hiS or her employer for "bodily In. lury" to any co.employee of such per, son Inlured In the course of em. ploymenl, <;OPYIIghl. Insurance Services Office. Inc.. 1985 Page 1 01 2 = , ' ,\1.1';,\11>:"; I\,- ('.\SI'I';i< 1.1.(' ,'//1.,...,..-..I-L!.,. BY. AlAN H. CASPER Inr."HlI-J{'AllllN No -l711~1 221 Slll'lll EASlll:'>l R\lAU - SLrn. lit) illl &"lX7.1n (;U:SSIIlf. PI'!'-l:SS~LV'\NIA. 191UIHI7]h 11.')"99'1"1517 Counsel for Plaintiff C, Lewis Hill Plaintiffs, PENNSYLVANIA IN THE COURT OF COMMON PLEAS COUNTY OF CUMBERLAND COMMONWEALTH OF JESSE L FREY & C, LEWIS HILL 1/01 BEEDLE'S FLOWERS Defendant, NO. 1996-5864 CIVIL ACTION LAW JURY TRIAL DEMANDED vs, L1TlTZ MUTUAL INSURANCE COMPANY PLAINTIFF C. LEWIS HILL'S REPLY TO NEW MATTER OF DEFENDANT LlTlTZ MUTUAL INSURANCE COMPANY I. Admitted in part; denied in part. Plaintiff C, Lewis Hill admits that the declarations page of the policy of insurance an ached as Exhibit" A" to defendant's Answer and New Matter states as the "Named Insured" " Jesse L Frey and C, Lewis Hillt/a Beedle's Flowers," After reasonable investigation, plaintiff C. Lewis Hill is without information regarding exactly what the facts are upon which the remainder of the averment is based and is therefore unable to form a belief as to the truth of the averment. Plaintiff therefore demands strict proof thereof at tria!. 2, Admitted in part; denied in part. Plaintiff C, Lewis Hill admits that page I of the policy of insurance attached as Exhibit "A" III defendant's Answer and New Maner states: "Throughout the policy the words .you" and "your" refer to the Named Insured Shown in the Declarations," After reasonable investigation, plaintiff C. Lewis Hill is without information regarding exactly whatlhe facts arc upon which the remainder of the OIverment is based OInd is therefore unOlble to form a belief as to the truth of Ihe averment. PIOlintiff therefore demOlnds strict proof thereof at tria!. 3, Admined in part; denied in pOlrt. PIOIinliff C. Lewis Hill admiL~ that the defendOlnt's selected quotations from Section A OInd ils subseclion 3 of the policy of insumnce OInOlched OIS Exhibit "A" to defendOlnt's Answer OInd New MOlner OIre correctly quoted. After reOlsl1l1able investigation, plaintiff C, Lewis Hill is without informOltion regOlrding eXOIctly what the fOlcts OIre upon which the remainder of the avennent is based OInd is therefore unOlble to form a belief as to the truth of the OIverment, PJOIintiff therefore demands strict proof Ihereof at lriOli, 4. Admilled in part; denied in part. Plaintiff C. Lewis Hill admits that the defendant's selected quotations from Section B(2) and its subsections g and g( I) of the policy of insurance allached as Exhibit "A" to defendant'~ Answer and New Matter are correctly quoted. After reasonable investigation, plaintiff C. Lewis Hill is wilhout information regarding exactly what the facts are upon which Ihe remainder of the averment is based and is therefore unahle to form a belief as to the trulh of the averment. Plaintiff therefore demands strict proof thereof at trial. 5. Admilled in part; denied in part, Plaintiff C. Lewis Hill admits that the defendant's selecled quotations from Section E and its subsections 3, 3(c). )(i), 4, 4(a), 6, 6(g) and 6(g)(l) of Ihe policy of insurance allached as Exhibit "A" to defendant's Answer and New Matter are correctly quoted. After reasonable investigation, plaintiff C, Lewis Hill is without information regarding exactly what the facts are upon which the remainder of the averment is based and is therefore unable to form a belief as to the truth of the averment. Plaintiff therefore demands strict proof thereof at trial. 6. Admilled in part; denied in part. Plaintiff C, Lewis Hill admits that the defendant's . selected quotations from the beginning of the Businessowners Common Policy Conditions Section and its Section C of the policy of insurance allached as Exhibit" A" to defendant's Answer and New Maller are correctly quoted, After reasonable investigation, plaintiff C. Lewis Hill is without information regarding exactly whatlhe facts are upon which the remainder of the avenuent is based and is therefore unable to form a belief as to the truth of the averment, Plaintiff therefore demands strict proof thereof at trial. 7, Denied. Plaintiff C. Lewis Hill denies the avemlent that his claim is barred for violating various Sections of the applicable insurance policy, After reasonable investigation. plaintiff C, Lewis Hill is without information regarding exactly what the facts are upon which the remainder of the averment is based and is therefore unable to form a belief as to the truth of the averment, Plaintiff therefore demands strict proof thereof at trial. WHEREFORE plaintiff C. Lewis Hill requests that the Court enter judgment 111 his favor and against defendant. and that the Court award plaintiff all of the relief requested in his Complaint. ~------- . 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