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Home My WebLink About97-00786 IN THE UNITED STATES DISTRICT COURT FOR THE MIDDLE DISTRICT OF PENNSYLVANIA ENGLAND JEEP/EAGLE, INC., ) ) Plaintiff, ) ) v. ) No, ) UNIVERSAL UNDERWRITERS ) INSURANCE COMPANY, ) ) Defendant. ) NOTICE OF REMOVAL Defendant Universal Underwrilers Insurance Company, ("Universal") by its attorneys, requests that the above-captioned case be removed from the Court of Common Pleas, Cumberland County, Pennsylvania to the United Slates District Court for the Middle District of Pennsylvania. In support of its request, Universal states as follows: 1. Plaintiff, England Jeep/Eagle, Inc, ("England"), commenced this action in the Court of Common Pleas, Cumberland County against defendant Universal under the caption of "Enl!land Jeep/Eal!le. Inc. v, Universal Underwrilers Insurance Companv, " Universal received a copy of the complaint and summons on February 24, 1997. 2. A copy of the complaint is attached to this pelition. No other pleadings or other proceedings hilve been filed or taken place to date, 3, This action is a civil action and is one over which this court has origimil jurisdiction under 28 U.S.C. ~ 1332 and is an action that can be removed on the petition of defendant to this District Court pursuant to 28 U.S.C, ~ 1441. 4. Plaintiff is a cilizen of Pennsylvania pursuant to 28 U .S.C. ~ 1332(c)(i) because, according to its complaint, it is a Pennsylvania corporation with its principal place copy of its policy with Motorists Mutual Insurance Company ("Motorists"), which was the policy currently in effect. B. England advised Wallace that in bidding on the insurance, Universal must provide England with the same coverage as was presently in effect with Motorists. (A true and correct copy of the Declarations page for the Motorist's Policy is attached hereto as Exhibit "A"). 9. Subsequently, at England's place of business, Universal presented England with a comparison of the policies and offered to provide England with the same coverage as it had with Motorists, but at less cost. (A true and correct copy of the documents provided to England are attached hereto as Exhibit "8") . 10. England accepted Universal's offer of coverage and paid the sum of approximately $36,000 for the policy ("Policy"). 11. The Policy took effect on August 1, 1994 and covered the period through August 1, 1995. (A true and correct copy of the Declaration page of that policy is attached hereto as Exhibit .C") . 12. Subsequently, in September of 1994, England was notified by the Pennsylvania State Police that the 13, vehicles, which it had purchased from Jones Motor Cars Ltd. ("Jones") of Mechanicsburg, PA, at a cost of approximately $307,712, had been stolen and must be returned to their rightful owners. - 2 - 13. At the time England had purchased the stolen vehicles, Jones represented and England believed that Jones had good and legal title to the vehicles. 14. England had no reason to believe or suspect that the 11 vehicles that it purchased from Jones between May 5, 1994 and July 22, 1994 were stolen vehicles. 15. In September of 1995, the Pennsylvania State Police contacted England and advised that they were required to confiscate and return to the rightful owners, the aforesaid vehicles, which by then, England had already resoid or leased to its customers. 16. In order to avoid litigation with its customers who were seeking refunds for the purchase price or lease payments on the stolen vehicles, England provided each purchaser with a temporary vehicle to use and subsequently, an in-kind replacement for the vehicles which had been confiscated. 17. England made claims for its loss under its policies with both Universal and Motorists. 18. Universal acknowledged coverage for the 2 vehicles that were purchased after August 1, 1994, pursuant to its "trick and device" endorsement and paid England $50,000. (A true and correct copy of that endorsement is attached hereto as Exhibit "0") . 19, Universal denied coverage for the 11 vehicles th"t had been purchased from Jones between May 5, 1994 and July 2, 1994. - 3 - 20. Universal's denial for the claim was premised on the fact that the event occurred prior to the inception of the Policy and because England's sole coverage with Universal was for "trick and device" in the amount of $50,000. 21. Motorists denied all coverage asserting that although its policy contained two applicable endorsements, "False Pretense" and "Broad Form", the coverage lapsed, when the policy expired. (A true and correct copy of the denial letter is attached hereto as Exhibit "E"). 22. The Broad Form endorsement in the Motorists policy contained a loss limitation of $25,000 per occurrence, up to $300,000. 23. The False Pretense endorsement in the Motorists Policy contained a loss limitation of $50,000 total. 24. The "Broad Form" endorsement defined a "loss" as occurring when the insured was required to return the vehicle to its rightful owner. (A true and correct copy of that endorsement is attached hereto as Exhibit "F"). 25. The "False Pretense" endorsement defined a loss as occurring when the insured purchased a vehicle from someone who did not have legal title. (A true and correct copy of that endorsement is attached hereto as Exhibit "G"). 26. England commenced an action against Motorists asserting coverage under the False Pretense endorsement. - 4 - 27. On October 12, 1996, the Honorable J. Wesley Oler, Jr., entered a verdict in the amount of $50,000 plus interest for England against Motorists. 28. To date, after litigation expenses, England has received a net total of approximately $94,000, plus interest, from the two insurance companies. 29. England continues to have a loss of approximately $213,712 as a result of purchasing the stolen vehicles from Jones. 30. England would have recovered the balance of its loss, through its policy with Universal, had Universal provided the policy it contracted to provide. COUNT I BREACH OF CONTRACT TO PROVIDE COVERAGE 31. Paragraphs 1-30 are incorporated herein by reference as if fully set forth. 32. Universal offered to provide England with an insurance policy containing the same coverage as England currently had with Motorists. 33. England accepted Universal's offer of insurance coverage based upon the aforementioned offer. 34. England paid Universal for its policy and did not renew the policy with Motorists. 35. Universal did not provide the coverage that it had contracted to provide. - 5 - 36. Universal did not provide the coverage that it had contracted to provide as the Universal policy did not contain the "Broad Form" endorsement or a similar endorsement providing the same coverage. 37. Had Universal provided the "Broad Form" endorsement or a similar endorsement of the same type and in the same amount as the Motorists policy contained, England would have been covered for its loss up to $300,000. 38. As a result of Universal's failure to provide the contracted for coverages agreed upon by the parties, England has suffered a loss in excess of $213,712. WHEREFORE, Plaintiff England Jeep/Eagle Inc. demands judg- ment against Universal Underwriters Insurance Company in an amount excess of $213,712 plus interest and costs. COUNT II BREACH OF CONTRACT - CLAIM FOR COVERAGE 39. Paragraphs 1-38 are incorporated herein by reference as if fully set forth. 40. Universal offered to provide England with an insurance policy containing the same coverage as England currently had with Motorists. 41. England accepted Universal's offer of insurance coverage based upon the aforementioned offer. 42. England paid Universal for its policy and did not renew the policy with Motorists. - 6 - 43. The Policy provided by Universal contains .Commercial, General Liability" coverage. 44. The Commercial General Liability insurance covers claims of "property damage". 45. The Commercial General Liability insurance provides that the property damage must occur within the coverage territory and during the policy period. 46. The Policy defines "property damage" to include the loss of use of tangible property that is not physically injured. 47. One of the vehicles purchased from Jones, had not yet been sold by England. 48. The Pennsylvania State Police confiscated the remaining vehicles in September of 1995. 49. At that time, England sustained "property damage" as it was required to provide loaner cars to its customers; repurchase the vehicles from its customers and purchase newer vehicles at a higher cost, to replace the confiscated vehicles. 50. Universal has breached the policy by refusing to pay the claim pursuant to the Commercial General Liability coverage WHEREFORE, Plaintiff England Jeep/Eagle Inc. demands judg- ment against Universal Underwriters Insurance Company in an amount in excess of $213,712 plus interest and costs. COUNT II I REFORMATION OF CONTRACT-MUTUAL MISTAKE 51. Paragraphs 1-50 are incorporated herein by reference as if fully set forth. - 7 - 52. Universal offered to provide England with an insurance policy containing the same type and amounts of coverage as England currently had with Motorists. 53. England accepted Universal's offer of insurance coverage based Upon the aforementioned offer. 54. England paid Universal for its policy and did not renew its policy with Motorists. 55. Universal did not pay England's total loss, because the Policy did not have the requisite additional endorsement and amounts of coverage. 56. Had Universal provided England with the policy that it had agreed to provlde, England would have had coverage for the full amount of its loss. 57. The Universal policy does not contain the requisite "Broad Form" or similar endorsement in the aggregate amount of $300,000 which was included with the Motorists' policy and which endorsement provides coverage for losses that occur when the insured is required to return a stolen vehicle(s) to its rightful owner(s) . 58. The actual language and dollar limitations of the ,Universal policy are the result of a mutual mistake and do not accurately reflect the intent of the agreement of the parties as it relates to coverage for losses which occur when the insured is required to return a stolen vehicle'(s) to its rightful owner(s). 59. Universal and England intended for the Universal policy to provide sufficient coverage for losses which occur when the - 8 - insured is required to return a stolen vehicle(s) to its rightful owner(s); however, the Universal policy as written and issued does not accurately reflect the terms of the parties' agreement. 60. The Universal policy should be reformed and/or enforced so as to provide England with coverage in an amount up to $300,000 for its aforementioned losses. 61. England is entitled to recover in excess of $213,712 under the Universal policy as reformed for the loss suffered when it was required to return the stolen vehicles to their rightful owners and purchase replacement vehicles for its customers. WHEREFORE, Plaintiff England Jeep/Eagle Inc. demands judg- ment against Universal Underwriters Insurance Company in an amount in excess of $213,712 plus interest and costs. COUNT IV REFORMATION OF CONTRACT-UNILATERAL MISTAKE 62. Paragraphs 1-61 are incorporated herein by reference as if fully set forth. 63. In the alternative to the above allegations of mutual mistake, the actual language and dollar limitations of the Universal policy are the result of England's unilateral mistake in believing that Universal had provided sufficient coverage as promised, for losses which occur when the insured is requi.red to return a stolen vehicle(s) to its rightful owner(s) . - 9 - 64. At the time it issued its policy, Universal was aware and knew that England was under the mistaken belief that the Universal policy provided sufficient coverage for such losses. 65. England's mistaken belief that the Universal policy provided sufficient coverage for such losses was the result and fault of Universal in promising England that it would provide the same coverage as was in place with Motorists. 66. Universal never informed England that it had not provided the same type and amount of coverage it had offered to England and which England had accepted, or that it had unilaterally changed the coverage provided from the coverage which had been agreed to by the parties. 67. It would be unconscionable to permit Universal to avoid liability for paying England's losses, when Universal had represented to England that it would provide the same type and amount of coverage as England had with Motorists and induced England into switching coverage based upon that representation. 68. If Universal had provided the same type and amount of coveruge as previously provided by Motorists, for losses which occur when the insured is required to return a stolen vehicle(s) to its rightful owner(s), England would have been covered for its losses up to $300,000. 69. The Universal policy should be reformed and/or enforced so as to provide England with coverage in an amount up to $300,000 for its aforementioned losses. - 10 - IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA ENGLAND JEEP/EAGLE, INC., Plaintiff, ) ) ) ) ) ) ) ) ) ) No. 97-786 v. UNIVERSAL UNDERWRITERS INSURANCE COMPANY, Defendant. NOTICE OF FILING To; Lawrence R. Wieder Johnathan H. Rudd 100 Pine Street P.O. Box 1166 Harrisburg, Pa 17108-1166 PLEASE TAKE NOTICE that on March 17. 1996, we filed with the Clerk of the Court of Common Pleas, Defendant Universal Underwriters Insurance Company's Notice of Removal, a copy of which is attached hereto. ~~1:C~ Priscilla Weaver Kira E. Druyan MAYER, BROWN & PLAIT 190 South laSalle Street Chicago, IL 60603 (312) 782-0600 John Consevage Buchanan Ingersoll 30 North Third Street - 8th Floor Harrisburg, Pa. 17101-2023 (717) 237-4800 copy of its policy with Motorists Mutual Insurance Company ("Motorists"), which was the policy currently in effect. 8. England advised wallace that in bidding on the insurance, Universal must provide England with the same coverage as was presently in effect with Motorists. (A true and correct copy of the Declarations page for the Motorist's Policy is attached hereto as Exhibit "A"). 9. Subsequently, at England's place of business, universal presented England with a comparison of the policies and offered to provide England with the same coverage as it had with Motorists, but at less cost. (A true and correct copy of the documents provided to England are attached hereto as Exhibit "B") . 10. England accepted Universal's offer of coverage and paid the sum of approximately $36,000 for the policy ("Policy"). 11. The Policy took effect on August 1, 1994 and covered the period through August 1, 1995. (A true and correct copy of the Declaration page of that policy is attached hereto as Exhibit "C") . 12. Subsequently, in September of 1994, England was notified by the Pennsylvania State Police that the 13 vehicles, which it had purchased from Jones Motor Cars Ltd. ("Jones") of Mechanicsburg, PA, at a cost of approximately $307,712, had been stolen and must be returned to their rightful owners. - 2 - " 13. At the time England had purchased the stolen vehicles, Jones represented and England believed that Jones had good and legal title to the vehicles. 14. England had no reason to believe or suspect that the 11 vehicles that it purchased from Jones between May 5, 1994 and July 22, 1994 were stolen vehicles. 15. In September of 1995, the Pennsylvania State Police contacted England and advised that they were required to confiscate and return to the rightful owners, the aforesaid vehicles, which by then, England had already resold or leased to its customers. 16. In order to avoid litigation with its customers who were seeking refunds for the purchase price or lease payments on the stolen vehicles, England provided each purchaser with a temporary vehicle to use and subsequently, an in-kind replacement for the vehicles which had been confiscated. 17. England made claims for its loss under its policies with both Universal and Motorists. 18. Universal acknowledged coverage for the 2 vehicles that were purchased after August 1, 1994, pursuant to its "trick and device" endorsement and paid England $50,000. (A true and correct copy of that endorsement is attached hereto as Exhibit "Oil) . 19. Universal denied coverage for the 11 vehicles that had been purchased from Jones between May 5, 1994 and July 2, 1994. - 3 - 20. Universal's denial for the claim was premised on the fact that the event occurred prior to the inception of the Policy and because England's sole coverage with Universal was for "trick and device" in the amount of $50,000. 21. Motorists denied all coverage asserting that although its policy contained two applicable endorsements, "False Pretense" and "Broad Form", the coverage lapsed, when the policy expired. (A true and correct copy of the denial letter is attached hereto as Exhibit "E"). 22. The Broad Form endorsement in the Motorists policy contained a loss limitation of $25,000 per occurrence, up to $300,000. 23. The False Pretense endorsement in the Motorists Policy contained a loss limitation of $50,000 total. 24. The "Broad Form" endorsement defined a "loss" as occurring when the insured was required to return the vehicle to its rightful owner. (A true and correct copy of that endorsement is attached hereto as Exhibit "F"). 25. The "False Pretense" endorsement defined a loss as occurring when the insured purchased a vehicle from someone who did not have legal title. (A true and correct copy of that endorsement is attached hereto as Exhibit "G"). 26. England commenced an action against Motorists asserting coverage under the False Pretense endorsement. - 4 - 27. On October 12, 1996, the Honorable J. Wesley Oler, Jr., entered a verdict in the amount of $50,000 plus interest for England against Motorists. 28. To date, after litigation expenses, England has received a net total of approximately $94,000, plus interest, from the two insurance companies. 29. England continues to have a loss of approximately $213,712 as a result of purchasing the stolen vehicles from Jones. 30. England would have recovered the balance of its loss, through its policy with Universal, had Universal provided the policy it contracted to provide. COUNT I BREACH OF CONTRACT TO PROVIDE COVERAGE 31. Paragraphs 1-30 are incorporated herein by reference as if fully set forth. 32. Universal offered to provide England with an insurance policy containing the same coverage as England currently had with Motorists. 33. England accepted Universal's offer of insurance coverage based upon the aforementioned offer. 34. England paid Universal for its policy and did not renew the policy with Motorists. 35. Universal did not provide the coverage that it had contracted to provide. - 5 - ! \ . ~ . 36. Universal did not provide the coverage that it had contracted to provide as the Universal policy did not contain the "Broad Form" endorsement or a similar endorsement providing the same coverage. 37. Had Universal provided the "Broad Form" endorsement or a similar endorsement of the same type and in the same amount as the Motorists policy contained, England would have been covered for its loss up to $300,000. 38. As a result of Universal's failure to provide the contracted for coverages agreed upon by the parties, England has suffered a loss in excess of $213,712. WHEREFORE, Plaintiff England Jeep/Eagle Inc. demands judg- ment against Universal Underwriters Insurance Company in an amount excess of $213,712 plus interest and costs. COUNT I I BREACH OF CONTRACT - CLAIM FOR COVERAGE 39. Paragraphs 1-38 are incorporated herein by reference as if fully set forth. 40. Universal offered to provide England with an insurance policy containing the same coverage as England currently had with Motorists. 41. England accepted Universal's offer of insurance coverage based upon the aforementioned offer. 42. England paid Universal for its policy and did not renew the policy with Motorists. - 6 - 43. The Policy provided by Universal contains "Commercial General Liability" coverage. 44. The Commercial General Liability insurance covers claims of "property damage". 45. The Commercial General Liability insurance provides that the property damage must occur within the coverage territory and during the policy period. 46. The Policy defines "property damage" to include the loss of use of tangible property that is not physically injured. 47. One of the vehicles purchased from Jones, had not yet been sold by England. 48. The Pennsylvania State Police confiscated the remaining vehicles in September of 1995. 49. At that time, England sustained "property damage" as it was required to provide loaner cars to its customers; repurchase the vehicles from its customers and purchase newer vehicles at a higher cost, to replace the confiscated vehicles. 50. Universal has breached the policy by refusing to pay the claim pursuant to the Commercial General Liability coverage WHEREFORE, Plaintiff England Jeep/Eagle Inc. demands judg- ment against Universal Underwriters Insurance Company in an amount in excess of $213,712 plus interest and costs. COUNT I II REFORMATION OF CONTRACT-MUTUAL MISTAKE 51. Paragraphs 1-50 are incorporated herein by reference as if fully set forth. - 7 - 52. Universal offered to provide England with an insurance policy containing the same type and amounts of coverage as England currently had with Motorists. 53. England accepted Universal's offer of insurance coverage based upon the aforementioned offer. 54. England paid Universal for its policy and did not renew its policy with Motorists. 55. Universal did not pay England's total loss, because the Policy did not have the requisite additional endorsement and amounts of coverage. 56. Had Universal provided England with the policy that it had agreed to provide, England would have had coverage for the full amount of its loss. 57. The Universal policy does not contain the requisite "Broad Form" or similar endorsement in the aggregate amount of $300,000 which was included with the Motorists' policy and which endorsement provides coverage for losses that occur when the insured is required to return a stolen vehicle(s) to its rightful owner(s) . 58. The actual language and dollar limitations of the Universal policy are the result of a mutual mistake and do not accurately reflect the intent of the agreement of the parties as it relates to coverage for losses which occur when the insured is required to return a stolen vehicle(s) to its rightful owner(s). 59. Universal and England intended for the Universal policy to provide sufficient coverage for losses which occur when the - 8 - insured is required to return a stolen vehicle(s) to its rightful owner(s); however, the Universal policy as written and issued does not accurately reflect the terms of the parties' agreement. 60. The Universal policy should be reformed and/or enforced so as to provide England with coverage in an amount up to $300,000 for its aforementioned losses. 61. England is entitled to recover in excess of $213,712 under the Universal policy as reformed for the loss suffered when it was required to return the stolen vehicles to their rightful owners and purchase replacement vehicles for its customers. WHEREFORE, Plaintiff England Jeep/Eagle Inc. demands judg- ment against Universal Underwriters Insurance Company in an amount in excess of $213,712 plus interest and costs. COUNT IV REFORMATION OF CONTRACT-UNILATERAL MISTAKE 62. Paragraphs 1-61 are incorporated herein by reference as if fully set forth. 63. In the alternative to the above allegations of mutual mistake, the actual language and dollar limitations of the Universal policy are the result of England's unilateral mistake in believing that Universal had provided sufficient coverage as promised, for losses which occur when the insured is required to return a stolen vehicle(s) to its rightful owner(s). - 9 - 64. At the time it issued its policy, Universal was aware and knew that England was under the mistaken belief that the Universal policy provided sufficient coverage for such losses. 65. England's mistaken belief that the Universal policy provided sufficient coverage for such losses was the result and fault of Universal in promising England that it would provide the same coverage as was in place with Motorists. 66. Universal never informed England that it had not provided the same type and amount of coverage it had offered to England and which England had accepted, or that it had unilaterally changed the coverage provided from the coverage which had been agreed to by the parties. 67. It would be unconscionable to permit Universal to avoid liability for paying England's losses, when Universal had represented to England that it would provide the same type and amount of coverage as England had with Motorists and induced England into switching coverage based upon that representation. 68. If Universal had provided the same type and amount of coverage as previously provided by MotOl'ists, for losses which occur when the insured is required to return a stolen vehicle(s) to its rightful owner(s), England would have been covered for its losses up to $300,000. 69. The Universal policy should be reformed and/or enforced so as to provide England with coverage in an amount up to $300,000 for its aforementioned losses. - 10 - '.CHEUULE or rUKt'\~ riNU t."iUUr'..)tMtl'll" i ?OLICY NUMB<~: 33.16;1;; E AS Of 11/09/1993 NA~< INSUREO: ENGLAND JEE?/EAGLE INC ET Al fORM ,\ NO. IL0021 IL0022 IL0246 IL0910 IL7003 IL7005 IL7007 EDITION OAH TI TlE Ei'FECTIV< OAH -----------------FORMS APPLY TO ALL COV<RAGE---------------------------------- 11/1985 BROAO fORM NUCLEAR EXCLUSION 05/1987 EFf TIME CHG-REPLACEMENT Of 12 NOON 08/1986 A~ENOATORY CANCELLATION NONRENEWAL <NO (PAl 01/1981 P<NNSYLVANIA NOTICE 01/1987 MUTUAL PROVISIONS COMMON CONOITIONS 01/1987 SCHEOUL< Of PREMISES 01/1987 NAMED INSURED 08/02/ 1989 08/02/ 1989 08/02/ 1989 08/02/ 1989 08/02/ 1989 08/02/ 1989 09/19/1991 -------------------------PROPE~TY fOR~S--------------------------------------- CP0010 10/1990 BUILDING AND P<RSONAL PROP<RTY COVERAGE fORM 08/02/ 1991 CPOOI; 07/1988 GLASS COVERAGE fORM 08/02/1991 C?0030 ' 10/1990 BUSINESS INCOME COV<~AGE fORM ANa ~XTR'\ EX?ENSE 08/02/ 1991 CP0090 07/1988 COMMERCIAL ?ROPERTY CONOITIONS 08/02/1991 C?1030 10/1990 CAUSES Of LOSS - S?ECIAL fORM 08/02/ 1991 C?1213 10/1990 LOSS PAYABLE PROVISIONS 08/02/ 1991 C?1510 10/1990 OROINARY ?AYROLL LIMITATION OR EXCLUSION 08/02/1991 CP7000 01/1987 COMMERCIAL ?ROPERTY COVERAGE ?ART O<CLARATION ?AGE 08/02/ 1989 C?7001 04/1991 ELECTRONIC OATA PROCESSING COV<~AGE fOR~ 08/02/1991 CMOOOI c.~ 7000 CI\70 II CGOOOI CG2026 CG 7000 CG7004 CG 7013 · A~AOO F{'CR:VI S~,~ O=OE,-E" IL 7004 1-37 -------------------------INLANO MARINE---------------------------------------- 10/1991 CO~ERCIAL INLANO MARINE CONDITIONS 08/02/1992 01/1987 CO~ERCIAL INLANO MARINE COVE~AGE FORM OECLARATION ?AGE 08/02/1992 07/1990 SCHEDULED P~OP<RTY - S?<CIAL fORM 08/02/1992 ---------------------GENE~AL LIABILITY---------------------------------------- 11/1988 COM~<~CIAL GENERAL LIABILITY COVE~AGE FORM 11/198; AOO INS O<SIG PERSON OR ORGANIZ 01/1987 GENE~AL LIABILITY COVERAGE fORM OECLARATION PAGE 01/1987 EMPLOYEE BENEfiT ?~OGRAMS LIABILITY COVE~AGE 01/1987 EMPLOYEE B<NEfIT ?ROGRAIIS LIAS COV fORM O<C ?AGE 08/02/1991 01/13/1993 08/02/1989 08/02/1990 08/02/1990 ?AGE 0001 ~L.:1t.UULt UI rU(\I;.,J ..,I.. ...,..........~ ..... POLICY NUM5E~: 33.16;1;; [ AS Of 11/09/1993 NAME INSUREO: ENGLANO JEE?/EAGL< INC Ei AL FORti . NO. BM7002 <OITION OATE ErFECTIVE DATE TI HE _________________________3o1~E~/MACHINERY------------------------------------- 01/1987 SMALL BUSINESS B~OAO BOILER MACHINERY OEe PAG< 08/02/1991 _________________________~OR~E~S COMP----------------------------------------- ~COOOOOO 04/1984 ~ORK<~S COMP<NSATION & EtlPLOYERS LI AB POLICY 08/02/ 1989 ~COOOOOIA 02/1989 ~ORKE~S COMPENSATION & EtlPLOYERS LIAB OEC 08/0211989 ~COO0318 04/1992 AMENOATORY ENOORSEMENT 08/02/1992 ~C00040 3 04/1984 EXPE~IENC< RATING MOOIFICATION FACTOR END 08/02/ 1991 ~coo0406 08/1984 PREMIUM OISCOUNT <NO 08/02/1989 ~C370601 04/1984 S?<CIAL P<NNSYLVANIA ENO-INS?ECTION OF MANUALS 08/0211989 ~C 31060 2 04/1984 P<NNSYLVANIA NOTICE 08/02/ 1989 ~C310603 12/1987 PENNSYLVANIA ACT 86-1986 END 08/02/ 1989 CXS?Fr 26 CXS?FF81 CXS?G?13 CXS?G?14 CXS?X27 CXS?X316 CXS?X41 CXS?X;4 CXS?X;7 CXS?X78 CXS?X92 cX7000 CX7001 . A-ADO ~-~<VISEO O-O<L<TE IL )0 04 1-37 _________________________CO~~EX----------------------------------------------- XX/XXXX CONT~ACTUAL LIA31~ITY FOLLO~ING FORM XX/XXXX <tI?LOY<~S LIABILITY FOLLO~ING FORM 06/1990 AUTO O<AL<~S XX/XXXX AUTOMOBIL< L<ASING XX/XXX X C~OSS SUITS EXCLUSION XX/XXXX E~ISA EXCLUSION XX/XXX X KENTUCKY/PENNSYLVANIA AM<NOATORY XX/XXXX P<RSONAL ?ROP CARE, CUSTOOY OR CONTROL <XCL XX/XXXX ?OLLUTION ABSOLUTE <XCLUSIOH 01/1988 ASB<STOS <XCLUSION 03/1989 HAULA~AYS NOT CovEREO 01/1987 CO/'\/'\E~CIAL UMSRE~~A COVE~AGE FORM 01/1987 CO/'\/'\E~C;AL U~3R<~~A POLICY PROVISIONS 08/02/1989 08/02/1992 08/02/1990 08/02/1989 08/02/ 199 3 08/02/ 1992 08/02/1993 08/02/1989 08/02/ 1989 08/0211989 08/02/ 1989 08/0211989 08/0211989 PAGE 0003 ", I . . . , .. ;'" " ENGLAND JEEP EAGLE 6039 CARLISLE PIKE MECHANICSBURG, PA 17055 PRESENT COVERAGE UNIVERSAL UNDERWRITERS $550,000 BuiJding $610,000 90% Coinsurance Location 0 I No Coinsurance $500 Deductible Value Protection $250 Deductible Example: $610,000 $610,000 Total Loss $610,000 $500 Deductible $250 Deductible $60,000 to be paid by $250 to be paid by dealership dealership Contents Equipment A.C.V. Indicated Equipment. FuiJ Replacement Value Crime No Coverage Money Orders $ 10,000 Coverage Indicated Counterfeit Currency ~"':., .... . '. '. .,': ' :" ~:' .:'.....:.:...... .:~.\.:~.:~.~;~' .':::" "" . ." . . .',J' . ',' . . THE LEADERS IN DEALERSHIP INSURANCE SINCE 1922. TIlE SPECIALISTS Universal Underwrilers In....urance Company specializes in insurance coverage for Ihe aUlOllIOlive induslry, Like all Specialisls, we concelllr:lIe on one job only; ilL,uring Ihe aUlomolive induslry. Uoiversal has buill iL' repul<llion as the foremost insurer uf aUlo dealers dlloogh its commilIDent to providing beller service and prnduCls 10 ils customers. Universal Underwriters offers Iheir CUSlOmers experience in their induslry, service by qualified professionals, and fin.lncial slrenglh and stabililY. '.. HISTORY In 1922. a group of Chicago Ford dealers were searching for a way 10 insure their rapidly growing business. Fire insurance was expensive and qualified professional insurance carriers were hard 10 find for this young industry. They fonned a reciprocal insurance company and called it Universal Underwriters, Specialized business insurance had become a reality, Later that year, Universal moved 10 Kansas CilY, There Ule company grew to ill,ure 3.500 automobile dealers and 6,000 places of business by 1947, Universal Underwriters. built on the concepl of specialized business insurance. bad become a recognized leader in ule growing commercial auto insurance field. In 1949. Casually Lines for aUlo dealers were added 10 Universal's Fire and Allied Coverage. Now. Universal's unique specialized business insurance coverage was also complete coverage. In 1964. Universal Underwriters Life Insurance Company was fornled 10 handle the addition of Accident and Health and Credit Life products. and Whole Life and Teml Life insurance for dealers and employees, At about the same time. Universal Underwriters pioneered mOlOrcycle physical damage and liability insurance for individuals. Universal look lhe co nee pi of complete I.:overage one slep funher with the first Unicover. policy in 1969, The concept of pacleaged insurance coverage for a specific business began with 85 Ford dealers back in 1922, 8utthe Unicove'" policy marked the fitst time complete coverage for a specific business bad been offered in one policy. ,'Ubjectto one convenient billing, On February 17. 1982. the ownership of Universal Underwrilers and it subsidiary companies was acquired by Zuricb Holding Company of America, Inc, Universal Underwriters continues to operate as an aulOnomous company in Zuricb Group. Througb the years. Umversal Underwrilers' commitment 10 the aUlOmoblle dealer has nOI changed, Universal continues to meet the: \.:hange:s in the: iru;urance induslry and in our insureds' industries with beller products in specialized husiness ill<urance. Universal also offers beller service with 24 regional offices across the country and ule suppon uf its corporate office sl<lff in Overland Park, Kansas, BEST'S RATING TIle financial mengul of an insurance company should be one of ule most imporunt criteria the dealer should use in selecting an insurer. But how can a dealer make a valid judgment on something so complex? The A.M. 8est Company is an insurance induslry analyst who offers exactly such a service. 11tis company publishes Best's Ratings. which indicale the position of each company in comparison with others, based upon averages in the insurance industry, Best's recognized the stability of a company hinges upon the following principal faClOrs: I. Competent underwriting 2, COSI control and effective management 3, Adequate reserves 4. Net resources to absorb unusual shock 5. Soundness of investment 8est's Rating classifications range from A + + and A + (Soperior) to F (In liquidation). A 8esl's Rating of A + indicates that the insurance carrier's relative position is materially more favorable than iodustry averages. Universal Underwriler's Insurance Company is proud to bave earned 8est's Rating of A + (Superior), FINANCIAL SIZE CATEGORY The A,M. Best Company also publishes Financial Size Category classificalions, 11tis size category is determined by policyholders surplus plus conditional reserves and the estimated equity in unearned premiums. The range is from Class I (the smallest) to Class XV (the largesl), Universal Underwriters In.surance Company is listed by Best's as Class IX. indicative of our policyhOlder'S surplus of over S5oo.000,OOO and assets of over S 1,400,000.000. SUMMARY Whal should a dealer look for in an insurance carrier? Obviously. price is one con.sideration. Just as imporunt (and probably more imporunl should you susuin a major loss) are ule following crileria: I. Experience in your mdustry 2, Service 3, Financial Strength and sl.lbility For the franchised aUlO dealer. the answer is Universal Underwriters for your dealership insurance. E....Gu..."iD-4 COPYRIGIIT 1994 UNIVERSAL UNllERWRfTCRS INSllRANCECOMP.V<Y Gm~fr.t. 1/9011 -,':::'::' :~~,~~.:::.;~~:' ',' , . '." '~'::.":i:;:'''',,,.'': ":::, ">':'~:;:i>~?;' :.: ':- '~},::',~' f:';':'..,:::>\' ':. " .', ." !,.., ' - AUTO INVENTORY PHYSICAL DAMAGE Unicover IV provides insurance on your entire inventory of autos with aUlomatic nationwide coverage. You do not have to report new locations before coverage applies, which is required by most other policies. Other automallc expansions of coverage are: · Trick and Device on Owned Autos, Customcr's and Consi&ned Autos - No title required. · 'Incoming Trick and Device (if a trade-in has no valid title) · Conversion or secretion by borrowers or renters of your autos · Broader coverage on Demonstrators, Company Cars and Consigned Autos · No sublimit for Customer's Autos · Mechanic's Errors & Omissions · Loss of use Customer's Auto · Employee Theft . 'No fault' form of coverage on customer's Autos · Unnamed locations and in-transit - coverage on transport, while at auto show · Broad Form Collision - no 50 mile limitation · Permanently attached Mobile Communications Equipment · Resultant mechanical damage to Customer's Auto while in your Care, Custody or Control · Demos not limited to current year . Spot Delivery · Full Cost for Repairs-over 100 miles · Government Confiscation LIMIT OF LIABILITY $ 2,400,000 This limit includes your autos, your customer's autos and those on consignment to you. Trick and Device has a separate limit of $50,000 per loss. Average Monthly Values S 1.800,000 COVERAGES AND DEDUCTlBLES 'Specified Perils' includes such coverages as fire, theft, wind-hail, earthquake, riot, vandalislT', !!.Qlli collision. 'Unnamed Perils' broadens coverage to include perils not in Specified Perils, Collision, or Trick and Device, except as excluded. S~ecified Unnamed Collision Trick and erils. Perils. Device New Private Passenger 500-2500 500-2500 500 500 New Trucks 500-2500 500-2500 500 500 Used Private Passenger 500-2500 500-2500 500 500 Used Trucks 500-2500 500-2500 500 500 Tractors & Implements 500-2500 500-2500 500 500 Demos - Company Cars 500-2500 500-2500 500 500 Service Vehicles 500-2500 500-2500 500 500 Customer's Autos 100-500 100-500 250 lOO $60.000 Primary Other - Drive Other Autos 50 .'-.. . TIle first amount is the deductible per auto. the second amount is the deduclIble per loss. . ...,. -' regardless of the number of autos or locations involved in the occurrence. f1'oGLA"iD-IO COPYRIGHT 19~ UNIVERSAL UNDERWRm:RS INSURANCE COMPANY ...L"T1\tI6-.&!.719:1 6TAIUIOW( HOME !()F'l'"'10:.-.,.ro:r004=..HOt.HE9i'-5UIIE 'gl0',"'~3'.."CITY, MO 64131 t A S.':C. ".'. ~ ~..:::: :;:: ...~...... ,. tHIS f"ULiCY [N~.;Um,-S ONU THOS~ COVEk,~GLS AN[' f'ROf'i:.RlY SHOWN IN THE lr!:'CI_ARATlUNS MArol:: A f'(\RT OF THlS POLICY. SUl.;H INSURANCE A~'~'LIl::S UNLY 10 '(HUSE INSURElJS, SI::CURL IY INlI::R~SlS, AND LOCATIONS lrl::SiGNATElI ~OR I:.f\CH COVeRAG!:; AS !l'ErllIYIED IN ITEM 2 BY L.ETrERCS) OR NUMB!:;R. (CHANGES, IF ANY, ARE INDLLA1ElI ~Y +) I TE:M 1 ~'l.lL1CY ~'~.IdU[' AUGUSl 01, 1994 TO AUGIJS I 01, 19'1::; PuLICY NO. 135602 ITEM 2 NAME[' INSUI~ED AN[I TYPE: 01 ENGLANlr Jt:.:E~'-l::r'GLE INC, 02 HAI~OLL' I::NGLANro SR. l. SUE ANN ENGLAN[' urHER INSUREDS: AA HARULro f::NGLANro SR. B[' HAROLlI ENGLANro Jr~. CC RYAN ENGLAN[' DD AMY ENGLANro t::E HAROLD ENGLAN[' l. SUI::ANN ENGLANro CORPORATION INDIVIr'UAL SECURITY INTERESTS: In accordance wilh 1990 PA Law 63 (rormer HB 1955) this policy provid3s Collision Damage CoVe~J';3 on vehicles renled by the described in WHO IS AN INSURED with regard to the AUTO HAZARD. - A PNC BANK 4242 CARLISLE PIKE CAMP HILL. PA 17011 B CHRYSLeR cREron 4n8 ULL' GI::1TYSBURG ROi'\[l MECHAN H.SI:<URG, F'A 170::;5 C AroF' P.O. BUX 841045 [IALLAS. lX "15284-1045 LOCATIONS: " , 01 60.3<,1 CARLISLE PIKE MECHANICSBURG, PA 17055 Auro SALES l. SERVICE 135602 PAGE I-A \J;1; v C'"""'<... ~ .-.. '_~!( ~.."'..PI! ::...~"! I:..i.'-: .':.~~..": ..-. .....~.i of. I ( /& S.::::. .. \. a....~! : : .,..', ~ IICH :2 O:! 6041 !;A~;LlSLE F'IKE M~CHAN ICSE<URG, F'A 1705::' PARIS STORAGE. Auro PREP. ITEH 3 COVI::RAGES, ~'ROPLR'I Y INSURED, ANII SPECIAL PkO'JJ.SIONS APPLICABLE TO EACH COVERAGE PART: INSUREDS LOCA- nONS PERILS INSURED AUTO INVENTORY PHYSICAL DAMAGE (PARr 300) 01 ALL SEE BELOW REPAIRS: 90r. LABOR -- YOUR AUTOS 75X PARTS -- YOUR AUTOS 90r. LABOR - cusrOMER AUTOS 75)\ r'Af.. I'S - CUSTlJHER AUTOS TRICK ANII [.EVICE ti:N[llJRSEHENTS APPUCABLE: 0001 LUSS ~'AYABLE F'kOVISIONS 0615 HUL llf'LE:: CH!\NGE ENIICJRS!;;HENT 0638 GOV~RNMLNI CUNFISCATION 0639 MECHANIC'S E . 0 ~'LRILS A(~ll l'~('UC i I BU'_S SCHC:('ULE : OTHf::R INSUREDS --ClJMFoRI::HENS I VI::-- SF'ECIF lE[1 UNNAHE[, PERIL 5 F'ERILS 500/2500 500/2~OO 500/2500 500/2500 500/2~OO 500/2500 500/~500 500/~500 500/2500 500/2::'00 500/~~uO 500/2500 500/2500 500/2500 1001 500 1001 500 NO Df::['UCT NlJ ['ElIUCT 500 500 500 500 500 500 500 250 50 COLLISION NEW PRIVAIE. PASSENGER NEW rRUCKS USED ~'RLVA rE ~'ASSt::NGER USEI' TRUCK~ t"ARH lRl\ChJRS - IMF'LEHCNT (IEHONS I k/" UK-CUMPANY AUTO SERVICE AUTUS CUSIUME.R'S AUTO\:i I.'RIVE lJT:~ER Auras B B 14 B B B B AA,BB, CC,lII' 0011 I.'RIVE Ol'HER AUTOS OUR UHITS 2,600,000 50,000 TRICK Eo ['EVICE 500 500 500 500 500 500 500 250 NO COVER It I'HI:. ('UIUC I H'LL AF'~'LLES ONLY TO LOSS CAUS~[' E<Y THEFT, VANDAl.ISH, HALICIOC.lS HlSCH[E~, AND THE UNNAMED Pl::RILS. 13::'602 PAGE 1-[< S .,.",....!( \.... ~...!! C:;::~~! ~lIlCl..\.r".Io-J':\ Pl..Io"': _11. .",,!..Io' ll.l~ I 1.1 J'ec:- Ih\"'''''''''C:! cc:"....... LTE.: M 3 (;(J'),'d.;(lGES. r"RoPa:.R1Y INSUREr', ANl' !::i~'b..c 1 AL ~'kUV H:i! UN!) APf"L I C(lBLE 1 0 EAL:1l LOVER AGE PART: INSUREr.s LOCA- 1'IONS PERILS INSURED OUR LIMITS F'RO:,&:'ERTY ( PAr~l' 330) COINSX PEF:ULS ANlI DEDUCTIBLES BUllL[IING NONE 02,A 01 SEE 661,000 F"IRE: 250 SCHE[IULE WJIND-HAIL 250 Wl.MM 250 U1THER SPEC PERILS 250 IlHEFl-BURGLARY 2~0 LhIl~NAHE[l PERILS 250 t::::ARTHQUAKE NO COVER S~~'RK LI::AKAGE NO COVER v.012 MORTGAGE CLAUSE '....Jl-( GL(lSS EXCLU['E[I 0.'010 VALUE PI~OTECTION BUI~_DING 90Y. 02 02 SEE 79,000 F-IRE :.!50 SCHEDULE WIIND-HAIL 250 'Nl.~IH 250 ulTHER SPEC PERILS 250 rI HEFT-BURGLAR!' 250 LJ:oI-lNAMED PERILS 250 c.: ARTHGUAKE NO COVER S5!:ORK LEAKAGE NO COVER 0:'.)1" GLASS EXCLUDED STo..:::K Rf,'Tl' 01 01 SEE 260,000 F-IRE 250 SCHE[IUI_E W /INI'-HAIL 250 V.I~HH 250 OlTHI::I-: SPEC PERILS 2:50 'IHEF r-BURGLARY 100 U.>NNAHED ~'ERILS 250 C ;.RTHOUAKE NO COVER ~:-";'RK LeAKAGE:: NO COVER '.':-':'91 rRICK (IN[1 ['EVICE 13~602 PAGE l-C \ ,,'.'.T"-It ".., -..J1!rC':lllu[ 8Cv,,!,":l' -::.~a~.J'.: "."'. .'..la, .'1'1 t... 'T':C" '....'...a..":f ~:""'''l': iTI::H 3 C(jV~RAGI:.S. ~'kUf-'I::RTY INSUk~ll, AN[' SPECIAL ~HU'JlS!ON!:; Af-'F'LlCAE<LI:: TO t.ACH COVERAGE PARr: INSURE liS LOCAn lIONS PERILS INSURE[' OUR LIHITS GARAGI:: OI'U~A I'! UN!:) AND AUTO HAZARD (F'ART 500) ('RIVI:: OTHU~ AU'IOS 0034 DRIVE OTHER AUTOS AA,BB,CC, ALL ['[I COVEREr, INCLUDED HEDICAL PAYHENrs 0035 HEDICAL PAYHENTS 0036 LIHIlt.D HElilCAL PAYMI::NTS 01 ALL COVERED 5,000 UNINSURED HOI'ORISTS BU['IL Y INJURY 01 ALL COVEREl' 50,000 0045 UNLN::;U:';E.L' HO rORlSTS/BUl'IL Y INJIJRY 0046 UN(lERLN\oUREli HOTURIsrs - [<Ol'IL Y INJURY 0604 F'LNNS~LVANIA UNINSURE.[' HOTORISTS COVt.kAGI:: r10N-STAC~.EL1 0605 f.'ENNSTLlJANIA UN(Ii:.RINSURED HU I OR I S rs LOVERAGE r~ON-S TACKED I' L kS,. f'AI'; I' Y E<ENEFlI S 01,AA,I:<I:<, ALL CC,Dl' SF.E STATE AHEND- ATORY PART ADLIEl' !. COMBINEl' FIRSl PARTY BENEF ITS I::NliOR5E.HENT API"U ES: AA, BEl, CC, [lD NAHl:::[I INDLVWUALS BRAOllENEll i= IRS I F'Af,TY Bt.N. ENliORSEMENT APPLIES: AA, BE<, CC, ['ll - ME.UICAL DYt::NSE BENEFITS UP TO $100,000 - WORK LUSS [.E.NEFllS UF' 1'0 s50,OOO SUI:<JECl 1'0 A HAXIHUH OF $~,500 PER HUNTH _ FUNERAL EXf'ENSr::: E<ENEF 1 TS UFo TO $:!. 500 - EXTRAUkl' [NI'\RT HE[.ICAL 8ENE:.F ITS UI" 10 $1,000,000 135602 PAGE 1-G : - .\ ~:'. "'."h..tiJ.,~.:ij3 :lluf. i;~j. co; ;-1/-35 1 i : j 2 COMMERCIAL AUTO ~~~::sourgn 3r!~c~- 7;; l~j ~:::;= .. CA 70 06 IZ 30 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CARE FULL Y. 8ROAD FORM GARAGE INSURANCE COVERAGE This ~ndorsomcnt mcdifles Insut3nca provided under the following: GARAG= COVEi'lAGE FORM SCHEDULE The PERSONAL INJURY AND ADVERTISING INJURY LIABILITY COVERAGE Limit ot Insuronce is the same ss the LIABILITY COVERAGE Limit of Insurance unless another limit Is shown below or in the Oeclsrations: Personal Injury And Advertising Injury Limit at Insmnce S ~ ~ , The FIRE LEGAL LIAalLlTY COVERAGE Limit of Insurance Is S50.000 for anyone fire unless another limit is shown below: Flra Legal L1!bility Limit ot Insurance S The AUTO DAMAGE TO LEASED PROPERTY COVERAGE Limit of Insurance is S~O.OOO ~er Auto DamaQe (Subject te S100 Oeductiblei fillless another limit is shown below: Auto Damage To Laesed Property Limit of Insul1nte S (If no anlry appears above. information required to complete this endorsement will be shown in the Declamicns as a;:plicable to this endorsement.) I. PERSONAL. INJURY AND ADVERTISING IN- JURY LIABIl.ITY COVERAGE A. COVERAGE We will pay all &llms tha "inslll'8d" legelly must ~av as damages bacsuse of: e. "Personal iniury" caUS<ld by an offense committed: (1) In the conduct of your business; and (2) In the Coverage Territor! ~ng the Policy PeriOD. b. "AdVer.lslng injury" caused by an offense committeD: CA 70 06 12 90 (1) In the course at adVertising ycur ;ocds. products or services; ~d (2) In lI'.e Coverage Territcry during :ne Policy ?~riod. We have the right and duty to defend sny "suit" asking lor these ~lmaQes. Howaver. we haV! nc duty to del end "suits" for "personal Injury" cr "idvertisinQ injury" not covel'l!d by this CovCl'iQe Form. We mey investigate and settle any claim or .sult" as we consider All~rcpriate. Our dutY to da- iend or settle anas wnen the P9rsonal Injury 3ne ADvertising inrur'! ~imit oi Insurance has ~aen ex- "austed by ,eyment of iucQments or settlements. Motorists Mutull Insuranca Ccmpanv ?'!09 of... COMI.IE~CiI\L AUTO 1. WHO IS AN INSUReD Th~ tollowinQ Jr8 "insureds": B. You snd your spouso. b. Ycur pr:ners and their spouses. it you ar~. a ;lannership. None at your panners or thair loouses is an "insured" for ";lersonal injury" or "advenising injury" resulling trom the conduct of any olher partnmnio. c. Your executive oHicers. dll1lctors and stoc~- holders. cuI only while acting within the scope of their duties. 2. COVERAGE eXTENSIONS Suoplemenlary Paymants. In addition 10 the Pmonel Injury and Advenising Injury Limit of Insmnca. 1'10 will pay for the "insured": .. All expansas we incur. b. The cost of bonds to rolease attachmems in any "SlJlt" we defend. but only for tcnd amounts within the Pmonal Injury and Ad- vertising Injury Limit at Insurance. o. All rnsonable expenus incUlTlld by the "insul'1ld" at our I'1Icuest. including sctual loss of earnings up to SIOO a aay ~ecluse ct tlml eff trom wert. C. All costs taxed against the "'nsul'1ld" In any "illit" 1'10 detend. I. All Intarest on the full amcunt of any jUdgment that accrues atter entry of the judgmant in any "suit" we detand; but cur dIllY to ;lay Inl8l'11s1 anOS when WI IIave paid. o~ered to pay, or deoosllad in court the ;lut or the judljment that is within the P9rsonal injury and .1.dvartising Injury Limit of Insur- anca. B. EXCLUSIONS 7l1ls insurance aoas not acply t:: 1. Liability assumed undor any contnct or Igrae- me~t ~ut :nis axc!usion does not leoly to ii- aOlhty tor damages thet the -insureo" wculd hiVe in the losanca of the cennc: or agl'1ll- :!lant 2. "?monal Injury" or "advenisir.q injury" srislng CIIl of eral or written publicstion of matanal it dane ~y or It thl direction of :he "insered': Nitll ("OWle~;a of its falsitY. 3. "?mcnal injury" or "advenisllllj injury" ansln; our of cral or wrllIen PUDlicalion at matartal "'nose f1m :uolic3licn took olacs telere :!:e !ltec:lva ~ata of tillS insurance. ?lqa 2 :1 . . . . . ........ ~ .-... '" . .. -.; ....;....,. ,; CA 70 05 12 30 ( 4. "Pmcnal Inlury" or ..p~.lenlsln:l Injury" iriSin; out of tho willful Violation of , penal stanr.e or oniinance committed by cr with the consent of the "Insurad," !l. "Advartlsing Injury" arising out of bloacn or contract olMar than misaoproorlatlen of .dver- tising iaeas under an implied COOlrac:. 6. "Advartising injuri" lrlslng out of the failure 0' goods. preducts or seNlcas to conform with advortlaad cuallty cr per1ormance. 7. "Advertising injur(' arising out of the wreng dascription of tho pnce of :loads. products or services. 8. "Advertising Injury" arising oul of an oftensa commlttad by an "Insured" whoso businass Is advertising. ~roadc3Stlng. publiShing or telac3st- ing. C. PERSONAL INJURY AND ADVERTISING INJURY LIMIT OF INSURANCE The follOWing Is added to lI1e AGGREGATE LIMIT OF INSURANCE - "GARAGE OPERA nONS" - on.:a TliAN COVERED "AUTOS" ;:rovlsicn in SECTION II - LIABILITY COVERAG2 Subjuci to the Aggrega!s Limit of Insul1nee - (: "Gll'igu Operaticns" - Otller Than Covared "Autos" and reg8l1iless of tha number ci "Insurads." claims made or "suits" brought cr persons or orTJanimicns making claims or bringing -suits." thl most we will pay for the S1Jm of a\l damagas buceusa oi all "personal InJury- and "aoveniElng injury" sus- bined by Iny one ;:erS1ln or ol9ani:sticn Is the ?lIl1onal Injury and Advertising Inlury Umit of in- surance shown in thl Schedule or in ~~e Oeclara- tions. The Esch "Ac::idont" Limit of Insul3nca - "Garailo Qpmtloos" .. Gth6r Thin CoveI8d -Aurcs" for Li" ability Coverage doos nct apoly :P damages we ~ay tecause of "personal injury" and "advenising !njuri." D. ADDITIONAL DEFINITIONS The tllllowlnq Is addea to lI1e OEi'iNITICNS Sectien: "Parsonel injury" miens injury, other than "bodily injury," arlslll'.l cut oi one or mal! of :no followIOg offenses: 1. False ,mlS". datantlon or imcriscnment 2. Malicicus ;:rcsecrnlon: 3. Wrcngiul !nl1"( into. or avic:ion :i a persen from. a ream. CWllling or .)l'1Imlsas thlt t~e ~er30n cc::".:pies: '. ~Otor:s:s .\1 un: a I InS1Jrance Com~lnV C;' 70 06 12 90 ". ~', . .; ,.; .1,'""., .. >I.... ...... I ...." I I - J... . '..... ,; COMMEMCIAL AUiO 01. Ci~1 or written publicaticn of mateml ~~.t slanders or libels a person or ol'tJ.n1:at:on or dispmges e pmon's or OriJJnllaticn's gcodS. ~raducts or services: or :5. ::ral or written pUblic~tion of malarlJI :~Jt '/i- olatas a person's right af pnvacy. But. "oerson_1 injury" doas not include injur/ IrlSlng cur of advertising. pUblishing, ~o_dc~stlng or :ele- casting done by or for you. "AdvertiSing injury" meens injUry Jrising clI1 ot one or more of the following oUenses; 1. Cral or written publication of material :hat slanders or libels ~ person or ol'\lanizatlcn cr disP8l"lges a person's or o!'lJanizstlcn's !Jcces. products or services; 2. Oral or written publication of metarial that ',i- ol.tes e person's right of privacy; 3. Misepproprlatlon of ~dvertising Ideas cr mla of doing business: or 4. Infringement of copyright title or slogan. 11. HOST LIQUOR LIABILITY COVERAGE LIABILITY COVERAGE ISection III is changed by adding ~~e following: We will also pay all aums the "insured" legally must pay as d.!mages because ot -bOdily injury" or "orcoarty damage" .rising out of the giving or serving of alco. holic beveiilges et functions incidental to your ~aiJge business provilied you are not engaged in the bUSiness of mlnu18cturlng. distributing. salling or sel'ling of .1- ccholic beYerages. 111. FIRE LEGAL LIABILITY COVERAGE LIABILITY CoveRAGE (Section III fer "ganga oom:lcr.." is changed as follows: A.. T.,e in.sunnce applies to "pr;esrw ~amaga" ::.!'JSea by a lire to premises leased ~r l'1lntad to 'Iou. 3. Exclusions l thrcu~h IS. do not apply to ~~e in- S'Jl'3nca p~vided by :!lis 9ndo~ement. C. Subiec: to the Aggre<lat.e Limit of l!\Sunnc! - "Gerage Opention.s- . Otller Than "Auto." tha :ncst we will pay for all "pr::oer:y damage" l'1lsulllng from .ny one H/'1l is SSO.ilOO unless another !Imlt is snown in the Sc~aoule or in :I1e Declaratlcns. D. ii,is insuranca is !xcess over any collectible ~r:~ert'l inSUf3nC! linc!uaing ,my deauctible ::c~jcn or ::":3t :nsurancs; JV81l3ola :0 :r.e "ins:J~d:' ':~ iO as I. 90 -:-l"...~';...; j,i ...' ;.~';:;- I .: (,:.:. ::::..: .. CA 70 05 : 2 SC IV. INCIDENTAL MEDICAL MALPRACTICE LI- ABILITY COVERAGE L1ABILIiY COVERAGE (Section III is ch.n~cd by acdiq the following eXClusion; This Insurance does not aoply 10 any "insurae" :.1 :r,: business or occupation of providing any 01 the sel'llC"S listed under the lollowing definition. DEFINITIONS Is cnanged by adding the following t: t~: definition of "bodily injury": "Bodily injury" also includes ,"jury resulting !ro~: 1. Providing or feiling to provide any meliical or :elat9O professionel aervices: 2. FlJmishlng food or drink cOMected with sny meliicai or other profassional services: or 3. Furnishing or dispensil1lJ drJgs or medical. ~enl"1 or eurgical supplies or appliances. V. NON-OWNED WATERCRAFT COVERAGE LIABILITY COVERAGE (Section II) is ohanged as :cllow~: A. Exclusion lQ. WATEllCilAFi OR AIRCnAFi is re- placed by the following This Insuraru does not apply to: 1. Any lircraft; or 2. Any wat8r1:raft ucao! . wetercralt under Z5 'ee: that is not owned by you nor baing used :c earoi pe~ons or property tor a chal'\la. But this uclusion does not apply to water::aft while as.,ore on premises whel'1l you conduct "ga- rage operations:' B. If tlIan is other aoplicable Insum.ce wvering damages p.yaole under NON-OWNED WA TaCilA;:- COVERAGE. we will not :nake any ,symaOl:; "noe~ this covsrage. VI. ADOITIONAL PERSONS INSURED LIABILITY COVBAGE (Section III is cnlng90 by 30cin. the following :0 'NHO IS AN INSURED: If you ars ! partnership. the apouse of I pemer ::s en "'nsurud" with reseect to :l1a ccnduct of yeur .ef"3~e business. VII. AUTOMATIC LIABILITY COVERAGE - NEWLY ACOUIRED GARAGE BUSINESSES (90 DAYS) OE.::INITIONS ISectien VII is changed JY addir.q \h~ :ollowing to the aeiiniticn of "Insured-: "Insured" Ilso :nc:uoes as Namad Insure: lrN :.race ~l:Sine$s thlt :s lc=uirad cr lor.neo ay '(au :WO :viv wnien you ;nalOtaln ownersn,! or majorrty Intarae: However. "insu~d" ooas not Intlude .ny gerage ~U:;,- ness: Motensts MutlJ31 Insuram:o Comoanv ?:!~e .. ~: .. COMMERCIAL AUTO 1. That is ~ joint venture; 2. That is an "Insured" under 3ny other similer Iiabili~( or indamnity policy; 3. r.,at h3S exheusted its Limit at Insuranco under In'( other similar liability or indemnity ;:olicy; or ' 4. SO days or more after its acquisition or formation ~y you. VIII. LIMITED WORLDWIDE LIABILITY COV- ERAGE A. The POLICY PERIOD, COVERAGE lCilRITORY Garage Condition is changed by adding the following; We elso covar "bodily injury," "proparty damega," "personal injury" or "advertising injury" that 1. Occurs during lha policy part cd shown in :l:a Oactaralions; and 2. Is caused by an "'nsured" who permanently lives within the coverage territory whila tha "ineurad" Is temporarily outside of one of those plaoas. rna original "SlJlt" for d<lmeges resulting from suc~ "bOdily injury." "property damaqe," "personal inlulY' or .. aovertising injury" must be brought within the coveraga territory, e. Wa will not provide LIMITED WORl..CWIOE lIABllIiY CaVERAGE for any "warle you parformed." IX. TRUTH IN LENCING ERRORS AND OMIS- SIONS COVERAGE (APPLICAIlLE TO AUTO DEALERS ONL Yl A. COVERAGE We will also pay all S1Jms tha "insurad" legally ;nust pay as damages sOlaly by operation of Sactlcn 130, Civil liability, of Titte 1 [Truth in Lending Actl at the Consumer Credit Proiaction Aat tPo.rillia Law 90-321; 92 Stat. 145, et. saQJ because at error or omission committed by the "insurad" in tailing to comcly with with c.~a~ers 2. 4 or ; at iitle 1 in :his AC't We have lhe rioht and iIUty to dll'1end any "suit" ISKing lor thesa demages. However. wv h.w no cur( :0 cafend "suits" tor damages not covered Cy :l1:s ::"'''Verage Form. 'Ne may investigate and settle any allim or "suit- we consider appropriate. ~3ge J of 5 CA 70 06 1< SO , \. B. EXCLUSIONS This insurence ~ocs not spply 10 any IiJ~i1il'( cr claim arisIng out 01 Seclion 112, Crimln41 LiabililY. of Title 1 (inJlh in Landing ~ctl at the Car.sumer Credit i'rotactlcn Ac: iruoHc Law 90-31 1; 82 Stat. 146. et. seeJ C. LIMIT OF INSURANCE Cur obligetlon snail be limited to the maximum amount of S300,OOO tor the aggragate totol of ajl payments for damages arising trom transactlcr.s completed during the policy pari ad, X. FEDERAL ODOMETER STATUTE ERRORS AND OMISSIONS COVERAGE (APPLICABLE TO AUTO DEALERS ONL V) A. COVERAGE We will also pay all sums the "insund" legally must pay as damages solely by oporatlon af iitla IV. Odometer Requirements of the Malar Vehicla Informotion and Cost Savings Act. Public Law 92-513. 86 Stat. 961. as amended. because of errcr or omission committed by the "Insured" in failing to comply with this Act. We heve the right end auty to defend any "suit" asking tor lhasa damages. HOwever. wa have no t duty to defend "suits" fer d!mages nat covered by this Coverage Farm. We may investigate and settle any claim or -suit" we consider apcrcpriate. B. EXCLUSIONS This Insurance does "ot eooly to sny iiability 0, claim arising out of any' dishonast. (raudulenl crlmlrnll or intentione I act or acts committed by Ihe "insured:' any partler, officer. employee D, agant at the "insured" or other party in interest aCllng alone or in ~lIuslon with others. C. LIMIT OF INSURANCE Cur obligation shill be IImiled to the maximum amount of SJOO.OOO tor the aggregate toul ui payments for damegas arising from acts of errcr or omission committed during the policy period. MOlerlsts Mutual Insurance Comoany CA 70 05 t 2 sa -- . . " ~ "... I'; 1"'-' I , ~: 'j"';. .. - i/-;': , I'....: ''oJ'" . ( COMMEnCIAL AUTO XI. FRAUDULENT, FORGED OR COUNT!:RFEIT TITLE COVERAGE (APPLICABLE TO AUTO DEALERS ONLY) A. COVERAGE WO will ~150 pay for "loss" cuo 10 tho acce_lance JY the "insured," In good failh. In exch~r.~e tor o11erchandise. money or services. any "11110" :0 an "lUrO" it such "tlllo" is, proven to be frauculen~ ccunlorielt or forged ~nd a criminel warrent i~ oDtained tor the IlTllst of tile person or perscns execallng ~uch "till e." B. exCLUSIONS This insurance do os not apply to: 1. any dishonest act committed by the "insured" or any partner. officer. employae. stocltholoer cr agent of the "Insurod;" 2. any "loss" it e "title" Is fraudulent solely as a result of a lien or security Interest Ig~inst the "suto" Which is not racoroed on the "title:' C. LIMIT OF INSURANCE Cur limit of liability for any ene "loss" shall ce the lesser of the following amounts. not to exceed m.ooo. 1. 7he amount the -insured" paid for the ".uto," or 2. The Average Trade In Value shown in ~e .II.AilA, OHicial Used Car GlJide. D. ADDITIONAL DEFINITIONS The tollowing is sdded to the OEFlNITIONS Sectlcn: 1. ,itlc" means a written dOc:Jmentalicn of ownership issuad by governmental suthority av- idencillll ownership of an "auto:' 2. ;:,a following is sull3tihr:ed fer "loss" as used in Section VI of the policy: ",-oss" shell OD::Jr WIlen :he "insured" must ret1lm to iu rightful owner. any "auto" wniD:! !he "insurad" ~irsd by acceDUnte ot . frauculent for<;ed cr co~"terteit "litle." XII. AUTO DAMAGE TO LEASED PROP:RTY COVERAGE ,-!AaILiiY COVEtAG: ISecticn II) tor "garage CJleraticns" : s :~anqeo as follows: A. -:-:,e insunnc: aoplies to ";:ro~erty damage" caused :., 'Juto :::ama ;e'. ~o ,o;roC8r1y :CV8I"'!d,'" CA ;0 06 12 ,0 ~~~::~~~rs~ :~;~C~- I' , '. . ~.. ._ , . ...... "..... ~ CA 70 06 12 :c B. LIMIT OF INSURANCE 1. The most we will ~ay lor "auro o9m3~e" Ii the expenae to rapair or 10 replace the "Jropert'/ covered," not to exceed the limit 01 Ins~rancJ for AUTO DAMAGE iO L:....3i:~ ?Ra?i:i1T~ !.II_ SUAANCE shcwn In the Sc~edule or ~, :~, Dec!ararions, 2. Our Obligation to pay to ropair cr rapl"J "property coversd" will be reduced ~y I deductible amount of S100 each "ac:ioent:' C. ADDITIONAL DEFINITIONS The following is added to the OEFINITIONS Section: "?roperty covel'1ld" means leased properl'( ~cr whic.~ you era liable. consisting prinCipally of laesea bui/dings. machinery and equipment flxlllres. pumps, tanks and oullloor elj'Jlpment all pertBining to the meintenence. service or occupancy of tile ;:ramises. "Auto damage" means only ":oss" tOsulting from ectuel physical contact 01 ~n "auro" With "_rooeny Covered." XIII. AUTO DEALERS LEGAL DEFENSE COV- ERAGE A. COVERAGE We hove tile right and duty to delend any "lui!" brougnt agein&! you by or cn behalf 01 a customer ot yours thet results from demage to "ycur product" cr "wotic you per.crmed." Our duty to delend encs when the Auto Dealers Legel Defense Coverage Limit 01 Insurance has been exheusted. B. EXCLUSIONS 7hls insurance does not ap~ly to: 1. A dlshcnest. mellclous, fralJdulenl. criminal or Intentionel act or omission; however. this ex- clusion ~oos not apply to you if such ac: or omlssicn was committed by your emclcY9BS lomer than a partner. directcr. executive oHlcer cr stc::)(holderi without your directicn cr 'four knowleege: 2. "20dlly injur/," "property damag,," "ac'ler:i3Ini injury" or ";:ersenal injury;" 3. "Suits" brought to enforce a warranty agrsoment or mec.'lanical !lntakdcwn agreement ;:rcvided or iold by you; 4. "SUits" due to rec.1I of your ";:roaucts" or "'NcrX ycu JBnor:ned" or other Jrooertf cf '....nj:~ they torm a ;:a~ due tc a (nown or lus:ec:s: oeiac: or 'Jeilclency :hey ::ntaln. Motcrim Mutual Insur:lnce Company P~ce _ :f : W,:.\MEilCIAL AlfiO CA 25 03 0 I 87 THIS ENDORSEMENi CHANG"S TrlE POLICY. PLEASE READ IT CAREFULLY. FALSE PRETENSE COVERAGE This enoorsement modifies insurance provided under the following: GARAG: COVERAG: ,QRM SCHEDULE Limll of Insurance 5 50.~ 52:.000 unless another limil is shown below or in Ihe Oeclarat:.:ll1s. Limit ot In.)uranc~. Named Location No. From ITEM THREE of the Dealers Supplementary Schedule 1 A. COVE;;",) AlfiOS is changed by adding the following; Any -auto" you holve aCQuIred ;s a covered "auto" under False ?relense Coverage. B. ?HYSICAL OAMAGE COVERAG: is changed as fol- lows: 1. The following is added: We will pay tor "loss" 10 a covered "auto- u'lder. False ?retense Coverage. Caused by: a. Someone causing you to voluntarily part with ~'1e covered "auto" by trict scherr:e or unoer false pretenses. b. Your acquiring an -auto" lrom a seller wilo did not ha.... legal tille. 2. :XCWSIONS is c:langed as follows: a. The False ?relense Exclusicn does not apply. b. The following exclusion is addee: The insmnce under par. graph :.1.3. 01 this endornmenl does not apply unless: (1) You hold legal lille to the c::vered -auto- :nor :0 -loss;" and Total Inventory Velue For Each Named Location 5 1,300,000. (2) You make every effort 10 recover the covered "auto" v'Oen it is located. 3. L1MliS OF INSURANCE is changed as tollows: a. The proviSIons applicable to "auto" dealers aoply 10 False ?retense Coverage. b. ~noer False ?rl!tense Coverage. 52:.000 is the most we will pay tOf all ..'oss- caused by anyone person within any one year of ll1e policy period unless another limit is shown in the Scnedule or in the Declarations. 4. Tne OE~UC7laLE provision is changed by adding the follOWing: Fr JIn our ooligation un:er Faise Pretense Cov- erage. we will deduct tile actual value of any prooerry de livered :0 you in filII or ;:artial pay- ment Icr title to or possession of a covered - auto:' C. The following is added to the Dl1iIES IN TI":E EV9/T OF ACClOENi. C'-AIM. SUli OR LOSS Garage Con- dition: You must cbtain a warran~ as soon as ;:ncticable. for the arre~ of anyone causing a "loss" defined within tile False ?retense Coverage. If no entry aooe3rs aeave. inlor:nation ~quired to complete :J1IS enoorsement .....ill be snown in tlle Declarations as aoplicaole 10 tIlis enoor.:emenL C~ !~ 01 01 Bi ::cyrlQnL Insuranc~ ServIce: at/ice. Inc.. 158: