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HomeMy WebLinkAbout98-03469 " ~ '.. IA '" " , ,,1 :-\ ~ '" >\ . I ~: . .~ .. ~I ~'" '" ~ '\ ~ \ ~ ' ~ ! { ~ ~. I :---." JI 1 li)-..i -....)i :>0\ CV)j j ~'; ~l , .l MICI-IAELJ, MCCARRlE, ESQUIRE ATTY, IDNO, 57671 1700 SANSOM STREET, SUITE 300 PHILADELPHIA, PA 19103 (215) 564-1890 (TEL) (215) 564-1990 (FAX) ATTORNEY FOR DEFENDANT, PROGRESSIVE INSURANCE COMPANY RICHARD A, BLUMENSTEIN, JR" Plaintiff, IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA v, NO, 98-3469 CIVIL TERM PROGRESSIVE INSURANCE COMPANY: Defendant. JURY TRIAL DEMANDED PRELIMINARY OBJECTIONS OF DEFENDANT, PROGRESSIVE INSURANCE COMPANY TO COMPLAINT OF RICHARD A. BLUMENTSTEIN, JR. Pursuant to Pa,R,C,P, 1028(a)(4), Defendant, Progressive Insurancc Company, by its attorneys, hereby asserts these preliminary objections in the nature of a demurrer to the complaint of plaintiff, Richard A. Blumenstein, and requests that this complaint be dismissed, I, Progressive Insurancc Company issued to plaintiff, Richard A. Blumenstein, Jr., its insurance policy number 00586914-1., for thc period of this claim, 2, The policy providcd property insurance coverage for a boat owned by plaintiff, (A copy of the policy is allached hcreto and incorporated herein as Exhibit I), 3. The policy issued to plaintiff provided, infer alia, OTHER DUTIES: a person claiming covcrage under this policy must; 6, allow us to take signed or recorded statements, including statements under oath, and answer all reasonablc questions we may ask when and as often as we may reasonably requirc; and further provided that; LEGAL ACTION AGAINST US; No suit or action whatsoever or any proceeding instituted or processed in arbitration shall be '~' } brought against us for thc rccovery of any claim under this policy unlcss thc insurcd or his/hcr Icgal rcprescntativc has fully complied with allthc tcrms of the policy and unlcss such suit, action or procccding is commcnccd within two ycars of thc date of the accident.... 3, On March 16,1998, plaintiff, Richard A, Blumenstein, Jr., rCJlortcd to dcfcndant, Progrcssivc Insurancc Company, that his boat had bccn stolcn on or about March 12, 1998, 4, On April I, 1998, Progrcssivc forwarded to Mr, Blumcnstein, an affidavit ofthcft to securc infornlation about the propcrty rcported stolen, in order for Progrcssive to invcstigatc the loss reported by its insurcd, 5, On May 4,1998 thc affidavit ofthcft was returned to Progrcssive, (A copy ofthc affidavit of theft is attached hcreto and incorporatcd hcrcin as Exhibit 2), 6, As the result of information learned regarding the alleged thcft of the boat, Progressive demanded on May 4, 1998 that plaintiff appear for an examination under oath. (A copy of the letter demanding the examination under oath is attached as Exhibit 3), 7, On June 29, 1998 before appearing for his examination under oath, Mr. Blumenstein filed this action. (A copy of the complaint is attached as Exhibit 4), 8, By failing to appear for his examination under oath, plaintiff has failed to comply with all conditions precedcnt to suit as requircd by the policy, Wherefore, defendant, Progrcssive Insurance Company, respectfully requests that this action be dismissed for failing to state a c1aimupon which reJiefmay bc granted, MICHAEL J, MCCARRIE, ESQUIRE ATTY, ID NO, 57671 1700 SANSOM STREET, SUITE 300 PHILADELPI-l!A, PA 19103 (215) 564-1890 (TEL.) (215) 564-1990 (FAX) ATTORNEY FOR DEFENDANT, PROGRESSIVE INSURANCE COMP ANY RICHARD A. BLUMENSTEIN, JR., Plaintiff, IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA v. PROGRESSIVE INSURANCE COMPANY: Defendant. NO, 98-3469 CIVIL TERM JURY TRIAL DEMANDED ORDER AND NOW, this of , 1998, upon consideration of Defendant, Progressive Insurance Company's preliminary objections, to thc Complaint of Plaintiff, Richard A. Blumenstein, Jr., and plaintiffs rcsponse thereto, It is hereby ORDERED and DECREED that the preliminary objections are granted, and that the complaint is dismissed, , J, stolcn from its storagc location at 2510 South Markct Strcct, Mcchanicsburg, on or about March 12, 1998, Thc boat was purchascd by Mr. Blumcnstcin in Novcmbcr 1997, from his cmploycr, Raystown Pcrformancc Marinc for thc purchasc pricc 01'$33,327,08. Thc insurcd madc a down paymcnt of$13,OOO, and financcd thc balancc, Thc tcnns of the linancing agrccl11cnt indicatcd that thc tcnn ofthc loan would bc 12 ycars at 12,75 pcrccnt intcrcst, and that thc monthly paymcnts would bc $275,31, (Scc linancing agrcement allachcd as Exhibit 5). As thc rcsult ofinformationlcarncd about the thcft of the boat from policc sources, Progressivc sought to examine Mr, Blumenstein under oath pursuant to thc terms ofthc policy, On May 4, 1998, Progressivc sent to its insured a demand for such an examination. (See Exhibit 3). Without complying with demand for the examination, and indced, before the date scheduled for the examination, the insurcd filed this action. (See Exhibit 4), III. THE PROGRESSIVE POLICY The pertinent provisions of the policy issued by Progressive to its insured arc those that govern the insured's duties in the event ofJoss, and the policy conditions, The policy specifies that the insured's duties in the event of loss include: OTHER DUTIES: a person claiming i I' t, r' f I- )',' V' ~;. ;~" :iY i\ r.d Ie I,', I,,; ;'", covcrage under this policy must; 6. allow us to take signed or recorded statements, including statements under oath, and answer all reasonable questions we may ask when and as often as we may reasonably require The conditions contained in the policy provide that: No suit or action whatsoever or any proceeding instituted or processed in arbitration shall be brought against us for the recovery of any claim under this policy unless the insured or his/her legal representative has fully complied with all the terms of the policy and unless such suit, action or proceeding is commenced within two years of the datc of the accident." I~ LEGAL ARGUMENT As citcd abovc, thc Progrcssivc policy provides that to assist it in its invcstigation of a claim, thc insurcr Illay dcmand an cxaminationllndcr oath of its insurcd. Inlhis instancc, Progrcssivc made such a dcmand upon Mr, Blumcnstcin, and hc failcd to comply, It has long bcen thc law in this Commonwcalth that an insurcr has a right to dcmand such an cxamination when the policy so provides, See J-/arleysville Mutual Casually Co. v, Adair, 421 Pa, 141, 218 A.2d 791 (1966); COllermall v, Allslale IlIsurallce Co., 446 Pa, Supcr, 202, 666 A.2d 695 (1995); Savage v, Commercial Ulliolllllsurallce Co" 213 Pa, Super, 204, 473 A,2d 1052 (1984),1 As the plll]lOSC of such an examination is to allow thc insurcr to investigate thc claim made by the insured, and securc such information as will pernlit the insurcr to determine whether to pay the claim and the amount of the claim, the fmstration of this purpose prevents the insurer from properly adjusting and making any deternlination of the validity of an insured's claim, It is for this reason that courts have determined that conditions precedent to suit in an insurance policy, and especially those provisions that govcrn an insurer's ability to invcstigate, adjust and settle claims, must be strictly complied with beforc the insured may maintain any action on the claim. See Savage v, Commercial Ullioll IlIsurallce Co., 326 Pa, Super, 204, 473 A.2d 1052 (1984); Apalucci v. Agora SYlldicale, IlIc, , _ F.3d _ (3d Cir, No, 97-1190 6/2/98), slip op, at 5. (A copy of the court's decision is attached as Exhibit 6), As the insured has failed to comply with the policy's conditions precedent to the institution of suit, this action is premature, The purpose of requiring compliance with the I It should be noted that the legislature has required that similar provisions be included in every policy of fire insurance issued in this Commonwealth, 40 Pa, C,S,A. S 636, 3 '~' policy's conditions prcccdent is to pcrmit the insurcr to invcstigatc and adjust thc loss. Without thc ability to complctc its invcstigation and adjustmcnt bcforc an insurcd can commcncc suit, thc adjustmcnt proccss must csscntially bc undcrtakcn in thc courts, Thcrcforc, for any claim whcn circumstanccs suggcst a morc cxtcnsivc invcstigation is rcquircd or thc adjustmcnt proccss may bc complicatcd by any numbcr of factors, an insurcd's ability to rcsort to thc courts without complying with thc policy's provisions rcgarding the claims adjustment process, could clog thc courts and transfer the adjustment process from one undertaken between the parties to the contract, to a process supervised and governed by the courts, The fulfillment and enforcement of this condition precedent not only is warranted by thc terms of the parties' contract, it also serves the important public purpose of seeking the assistance and redress ofthe courts only when nccessary.' Here, no decision has been made as to the payment or denial ofMr. Blumenstein's claim, as his premature action has prevented Progressive from completing its investigation, and making a determination of his claim, Thus, this suit is premature, and contrary to the parties' agreement, and, fails to state a claim upon which relief may be granted,3 Wherefore, Progressive respectfully 2 As noted above, 40 Pa, C,S,A, S 636 requires that Pennsylvania fire insurance contracts contain language that permits an insurer to demand an examination under oath, and make the insured's compliance a condition precedent to the commencement of suit. Therefore, the inclusion of these provisions in this policy, and their enforcement here, is in accord with the public policy of the Commonwealth, 3 The public policy of allowing resort to the courts only when the parties have a real and actual controversy is also served by the provision requiring compliance with the policy conditions before the commenccment of an action. This is further expressed as thc public policy in the declaratory judgment statute, 42 Pa, C,S,A, S 8528, which permits the courts to determine the parties' rights under a contract when there is a controversy regarding the enforcement or interpretation ofthe agreement, but which, under no circumstances, allows the courts to intervene 4 ., ...--.... -.,.....-,..1-';0. ; ,..- ,., ., . " ..,...........~ EXHIBIT 1 " MOUNTAIN LAUREL ASSURANCE COMPANY 1635 Market Street, Philadelphia, Pennsylvania 19103 BOAT POLICY CONTRACT ANY PERSON WHO, WITH INTENT TO DEFRAUD OR KNOWING THAT HE/SHE IS FACILITATING FRAUD AGAINST AN INSURER, SUBMITS AN APPLICATION OR FILES A CLAIM CONTAINING A FALSE OR FRAUDULENT STATEMENT IS GUILTY OF INSURANCE FRAUD ' INDEX OF POLICY PROVISIONS PAGE POLICY AGREEMENT ..,...,...,.....,.............,..,.....,.,.."...................................................................................... 2 DEFINITIONS ..............................,........,.........",.............,............................................................................... 2 YOUR DUTIES IN CASE OF ACCIDENT OR lOSS .......,............."....,......................,..........................................,................................. 3 OTHER DUTIES ........".......,..,.................",..,.,..,..............,.............................................................................. 3 SECTION A . PHYSICAL DAMAGE COVERAGE .......,.......,....,......................................................,............................,........ 4 Insuring Agreement ..,""',.".".,..,...",.."."..".""...." ...., ,., ..,.."",....,.......... ....,.. ....... ...".."...,.,...""...,..""..., ,.. 4 Additional Definitions ""',..".".,..,.."".."."..""..",..,......." ...."", ,.......... ..... ,......"..,.........".."....., ......" ,.."...,... 4 Additional Coverages ,..",..,..,......""", ,..",..""...",.., ......",....""....,........,.. ....,..,...... ,....,..,..".....,......", '......".. 4 Exclusions ",.."".."" ,..,""',..,',..,.,"""....".."".,.."..""...." ..... ...,.....,',...,",.".."..",."....,.."".,......,.""" '....""" 5 limit of liability '....", .........,..,.".,..,"",..."".."..,.,..,..""..", ............,....,..,",.",..".."."........."........"",.., '....".... 6 Payment of loss ...".."..,",..,..,.,..,'"",...",..",.,..,...."",.." ............,...,.,.."..",..,........." ..,.."........"""..",..., ...., 6 No Benefit to Bailee ,..,""",.".,.,..,""',...,",."..,..,...."",..",...........,...,...,",.,',..,......".."........,.....,..,......,...,...., 6 Our Option to Repair ,..,"',.."..,.,..,",..,...,",.."."......"",..",..,............,...,',..................,.....,...........".......",...... 6 Appraisal ,,'..,'...., ,...........,.,....,.."..",.."."" ,....."..",.."" ....,.............",..., ...."..........,.. ....... ,......... ....,.. '..",'..,.., 7 Other Insurance .,'...., ..........,..,..".." ...,...,..,.....", ,....""" '..,.., ,..."...."....,......" ......., ..,......,..".,.... ........ ......... ,.. 7 ECT/ON B . wATERCRAFT LIABiliTY COVERAGE ............,......,..,.................................................................................. 7 Insuring Agreement ...."..,.,..".,...."".."...", ..,..",..".."" ,.."..,....,..,.."",. ..... ........,..,........"""........,..... .........,.. 7 Additional Definition ...., ,.."...""."..",.."""" .....""..,.."" ....,..,...,"",.,',.,.....,........""......".."".,...."""", .......".. 7 Additional Payments ,.............".,',..,....,.."...,..."",....,..""...."..",....",..,.,',...,.......,.........,............"""",......,... 7 Exclusions ...,........"..,....".,...."." ,..".."."....,.." ,........,..,....,.."" ,...,........""." ,.."..,.."...... ..........,.,..,..,..,...",.., 7 limit of liability ..,.."..,..,..,.,....".",..,....""..."",..."",...,.." ......, , ..........,...,.... ...... ....,.., ......,....,.,.... ,........,........, 9 Other Insurance .,,'....... ........",.."" ,.....,",..."",.,.."........., ......., .....,....,...,....,...." ..... ........."....,...... ........"", ..., 9 SECTION C - MEDICAL PAYMENTS ......................................................,..,........................................................................ 10 Insuring Agreement ".., .....,.,."..,...,..,.. ,..,',..""."..".....,.." ,..,...."...,..,.....",.........." ......, ....""......." .....,........ 10' Additional Definitions .... ,.."...,.."...""",...." .....",.... ,..,",.."..".."..,.,.".,."",.., ,..".."......." .............,.."", ..,..... 10 Exclusions ,,'.. :.....".., ,....,',....,..,..,..""""....".." ......,..,.... ......""......"."......., ...."............, ,.. ,.."........",.."...... 1 0 limit of liability ....,......"..."...,..,..,..,"""...,..,.."..,.."..,............"......',..,.......,....,......."......,...,.........,....",..,." 11 Other Insurance ...,....,....",....,..,..,..",.."..,..."",.... .................... ......,..,.,...... ........"..", ,......,."........" ......."",. 11 SECTION D - GENERAL PROVISIONS ...,........,...........,....,...............................:................................................................ 11 Policy Period .,...,,'.. ,....,..,',.,.,..""..""""..,..,..".... ..,..,....,.., ........ ,............,.... ......".., ....,,'.., .........." ..........,... 11 Policy Territory .,....,..,.....",...,...,..,.."..""".."",.... ........ ,.. ,..,......, ,........,....,.....,.." .........", ............,.., .........,.. 11 Changes "',.......,",..,....""".,.,.",."..,....""....",.., ,....".".."..",...,..". ........",....."" ...........".....,........"...., ,...... 12 legal Action Against Us ."....,",..,",......,',...."..."...."""..,..""..,.."...,.,........"..,',......,......".."..........""........ 12 Transfer of Your Interest in This Policy.;...,.,....".....,.,...,........,..".. ......,..,..,.."..,... ,....".. ,....,...",..",.........." '....,. ....,.....,..., ..........,... 12 Our Right to Recover Payment ....................................,....................,..........................,..,............,..,........... 12 Two or More Policies ..,........,....,..,..,.,""',.",....,...,..,.......,.."........,...................".......,......",.".....,....,...,...... 12 Renewal Provisions ,........".."...,.."..".."""..""....,..,..........",..., '..,...,.... .....", ,..".,...."......""",....., ....,."",.., 12 Cancellation/Non-Renewal Provisions ."..""... .......",.,.",...", ..,......"......",.... '.."", ,.. ,.....,......,...,.,...",..........""....",. ,..,....,...." ,........,. 12 Fraud and Misrepresentation ,.,...,.......,',..,......"..,.."..,....,.., ,..,...,..",.,..... .........,... ,........,.."""..... ..,..,..... ..... 13 Bancruptcy ",..".....,......",.".."..",.,."..""......""......... .....,..... ,.."..".,."........" '..,'..,.... ........,..........,...."..".." 13 Terms of Policy Conform to Statutes .....,",..........",.,...,.,.",..",.."",......... .....,"',..,..""".....,.,.,....""............, ......",..",.........., '......... 14 Form No. Ll1S2 (12194) page 1 of 13 PINE0921952B05L 11S2C94 AGREEMENT If you pay your premium, we agree to insure based upon the agreements and representations contained in your application for insurance with us and subject to all terms of this policy for the coverage and up to the Limits of Liability as shown in the Declaration Page of this policy. The Declaration Page, any endorsements, and the application are part of this policy contract. PLEASE READ YOUR POLICY CAREFULLY, Provisions of this contract and its endorsements restrict coverage, Be certain you understand all of the coverage terms, the exclusions and your rights and duties, DEFINITIONS 1, "We," "Us" and "Our" mean the Company providing the insurance as shown on the Declaration Page, I , 2, "You" and "Your" mean the person shown as the named insured on the Declaration Page and that person's spouse illiving in the same household, 3. "Bodily Injury" means physical harm (other than any communicable disease, including but not limited to Herpes, Acquired Immune Deficiency Syndrome, AIDS Related Complex (ARC) or any venereal disease) to or death of any person, and psychiatric injury or psychological injury, 4, "Property Damage" means damage to or destruction of tangible property, including loss of its use, 5, "Relative" means a person living in the same household and related to you by blood, marriage or adoption, including a ward or foster child. 6, "Occupying" means in, on, getting into or getting out of. 7, "Business" means a trade, profession or occupation, whether full or part-time and whether permanent or temporary, whether for profit or not for profit. 8, "Watercraft" means: a, a boat 32 feet or less in overall length; b. the attached motor or motors; and c, any other watercraft listed on the Declaration Page, 9, "Your covered watercraft" means: a, the watercraft described on the Declaration Page, including its permanent equipment; or b, any watercraft of which you aquire ownership during the policy period, provided that it replaces the watercraft described on the Declaration Page and you ask us to insure it within thirty (30) days after you become the owner, If you wait longer than thirty (30) days to ask us, you will not be covered until 12:01 a,m, on the day following the postmark on your notice to us, You must pay any additional premium required, This coverage is limited to 530,000, The insurance afforded by this policy on the original watercraft ends when you acquire possession of the replacement; or c, any watercraft you do not own while used as a temporary substitute for any other watercraft described in this definition which is out of normal use because of its breakdown. However, coverage under Section A . Physical Damage does not apply to a temporary substitute watercraft. For purposes of this policy, a watercraft shall be deemed to be owned by you if leased: a, under a written agreement to you; and b. the lease is for at least six (6) continuous months, Form No, L1162 (12194) page 2 of 13 PINE0921952B05L 1162094 I 10, "Accident" means an unexpected and unintended ovent that causes bodily Injury or property damage and arises oul of the ownership, maintenance or use of a watercraft. 11. "Permanent equipment" means equipmenl Installed by a dealer or manufacturer in your covered watercraft. Permanent equipment includes ship-to-shore radios, depth finders, loran systems, GPS systems, fish finders, radar and sonar systoms, and fishing motors with less than 20 horsepower. We consider safety and life-saving equipment permanent equipment even if such equipment Is portable, 12, "Personal effects" includes equipment usually required on board for operation or upkeep of a watercraft including anchors, oars, tarpaulins, lights, fire extinguishers, extra fuel tanks, bilge pumps, portable cookstoves, and deck chairs while such equipment is attached to or contained in or on your covered watercraft. However, personal eHects shall not include portable electronic or photographic equipment, fishing gear, tools, guns or other hunting equipment, binoculars, water skis, parasails or other water sports equipment or other property not specifically for marine use, 13. "Motor" includes remole controls, eleclric harnesses, fuel containers or batteries when supplied by a manufacturer as a part ot the motor. 14. "Trailer" means a towable trailer designed specifically for the transportation of a watercraft. 15. "Actual Cash Value" means the cash amount that would be required to replace property in the same condition in which it was at the time of the loss, YOUR DUTIES IN CASE OF ACCIDENT OR LOSS In the event of an accident or loss, you or a covered person must report it to us immediately by contacting our nearest claims office, The report must give time, place and circumstances of the accident or loss, including the names and addresses of the injured persons and witnesses, OTHER DUTIES A person claiming any coverage under this policy must: 1. cooperate with us and assist us in any matter concerning a claim or lawsuit; 2, send us promptly any legal papers received relating to any claim or lawsuit; 3, submit to physical examinations at our expense by doctors we select as often as we may reasonably require; 4, authorize us to obtain medical and other records; 5, provide any written proof of loss that we may reasonably require; 6, allow us to take signed or recorded statements, including statements under oath, and answer all reasonable questions we may ask when and as often as we may reasonably require; 7, attend hearings and trials as required; 8, provide us with written notice of any legal action such person has undertaken in regard to the accident for which coverage is sought; and 9, refuse to, except at your own or a covered person's own expense, assume any obligation or incur any expense other than that for medical and surgical care imperative at the time of the accident. If claiming coverage under Section A of this policy, you must, in addition: 1. notify the police and/or Coast Guard immediately in the event of theft, vandalism or sinking of your covered watercraft; 2, take reasonable steps after a loss to protect the property from further damage, make reasonable and necessary repairs required to protect the property, and keep accurate record of repair expenditures. If you fail to do so, any further damages shall not be covered under this policy; Form No, L1162 (12/94) page 3 of 13 PINE0921952805L1162C94 3, prepare an inventory of damaged property showing in detail the quantity, description, actual cash value and amount of loss. Attach to the inventory all bills, receipts and related documents that substantiate the figures in the inventory; 4. exhibit the damaged property as often as we reasonably require; 5, submit to us, within 60 days of the loss, uniess such time is extended by this company in writing, your signed sworn statement of loss which sets forth, to the best of your knowledge and beliof; a, the lime and cause of loss; b. your interest and that of all others in the property involved and all encumbrances on the property; c. other insurance which may cover the loss; d, changes in title of the property during the term of the policy; e. detailed estimates for repair of the damage; and f. the inventory of damaged or stolen property, SECTION A - PHYSICAL DAMAGE COVERAGE If you pay us a premium for Physical Damage Coverage, we will pay for loss to your covered property, less any applicable deductible shown on the Declaration Page, ADDITIONAL DEFINITIONS USED IN THIS SECTION ONLY 1, "Your covered property" means: a. your covered watercraft, but not a temporary substitute watercraft; b, the trailer(s) described on the Declaration Page; 2, "Loss" means sudden, direct and accidental loss of or damage to your covered property. Loss does not mean damage to your covered property caused by continued use of your covered property after a loss, a, Collision means colliding with another object. Loss caused by missiles, foreign objects drawn into the boat motor's cooling system, falling objects, fire, flood, malicious mischief, vandalism, riot, civil commotion, hitting a bird or animal, or breakage of glass is not a loss caused by collision. If a collision causes glass to break, it will be treated as loss caused by collision. b, Comprehensive means loss caused by other than collision, c. Theft means loss caused by theft, larceny, robbery, or piiferage, d, Actual Cash Value means the amount it would cost'to replace the stolen or damaged property with property of iike kind and quality, In the event replacement property of like kind and quality is unavailable, allowances can be made for the difference in value between the replacement and damaged property. ADDITIONAL COVERAGES 1, Reasonable Repairs, We will pay the reasonable cost incurred by you for necessary repairs made solely to protect your covered property from further damage provided coverage is afforded for the peril causing the loss. This coverage does not increase the Limit of Liability applying to the property being repaired, 2, Wreck Removal. We will pay the reasonable cost incurred by you for any attempted or actual raising, " removal or destruction of the wreck of your covered watercraft if: Form No, L"62112194) page 4 of 13 PINE09219S280SL 1 162C94 J a, the peril causing the loss is covered; and b, removal or destruction of the wreck is required by law or governmental authority. The amount payable for damage to your covered watercraft plus the cost of removal or destruction of the wreck may exceed the physical damage coverage limit for your covered watercraft. In that case, an additional 5% of the applicable physical damage coverage limit for your covered watercraft will be available to cover wreck removal costs, 3, We cover personal effects up to a limit of liability not to exceed $1000 in the aggregate for anyone loss, This additional coverage does not apply to property separately described and specifically insured in this policy or any other insurance. EXCLUSIONS WE WILL NDT PAY FOR LOSS: 1, FRDM DAMAGE DUE AND CONFINED TO WEAR AND TEAR, GRADUAL DETERIDRATIDN, CDRRDSIDN, RUST, MARRING, SCRATCHING, DENTING, DDCK RASH, LATENT DEFECT, MECHANICAL BREAKDDWN, STRUCTURAL BREAKDOWN, FAULTY MANUFACTURE, INADEQUATE, MAINTENANCE, INSECTS, VERMIN, RDDENTS, BIRDS, DDMESTIC ANIMALS, MARINE LIFE, MDLD, WET DR DRY ROT, DAMPNESS DF ATMDSPHERE OR WEATHERING, SMDG, ICE, MDVING ICE, FREEZING, THAWING DR EXTREMES DF TEMPERATURE; CAUSED BY ANY REPAIRING OR RESTDRATIDN PRDCESS DR SERVICE DR MAINTENANCE DPERATIDN UNLESS FIRE RESULTS AND THEN DNLY FDR LOSS CAUSED BY THE RESULTING FIRE; CAUSED WHILE CARRYING PERSDNS DR PRDPERTY FDR A FEE, DR WHILE YDUR COVERED, PROPERTY IS RENTED TO. DTHERS; WHILE YOUR COVERED PROPERTY, EXCEPT FDR A SAILBDAT, IS BEING DPERATED IN AN . DRGANIZED OR PRE-ARRANGED RACE, SPEED TEST, OR SKI CDNTEST; 2, 3, 4. 5. .,.' FROM WAR, INCLUDING UNDECLARED WAR, CIVIL WAR, INSURRECTIDN, REBELLlDN, REVOLUTIDN, WARLIKE ACT BY A MILITARY FORCE DR MILITARY PERSONNEL, DESTRUCTIDN DR SEIZURE OR USE FOR A MILITARY PURPDSE, INCLUDING ANY CONSEQUENCE OF ANY OF ':, THESE, DISCHARGE OF A NUCLEAR WEAPON SHALL BE DEEMED A WARLIKE ACT EVEN IF !C_' : ACCIDENTAL; , :. 6, FRDM NUCLEAR HAZARD, INCLUDING ANY NUCLEAR REACTION, RADIATION, OR RADIOACTIVE,-. . CDNTAMINATIDN, ALL WHETHER CDNTROLLED DR UNCDNTRDLLED DR HDWEVER CAUSED.:.. OR ANY CDNSEQUENCE OF ANY OF THESE; 7. OCCURRING WHILE YOUR COVERED PROPERTY IS USED FOR ANY CDMMERCIAL OR BUSINESS PURPDSE; 8. OCCURRING AS A RESULT OF DR DURING OPERATION BY A PERSON WHO. IS LEGALLY INTOXICATED AS DEFINED IN THE JURISDICTION WHERE THE LDSS DCCURS OR UNDER THE INFLUENCE DF DRUGS OTHER THAN LEGALLY PRESCRIBED DRUGS TAKEN ON THE ADVICE OF A PHYSICIAN. S, OCCURRING WHILE YOUR COVERED PROPERTY IS USED IN ANY ILLEGAL ACTIVITY OR ILLICIT TRANSPORTATION OR TRADE; 10, FROM DESTRUCTION, CONFISCATION OR SEIZURE BY ORDER DF ANY GDVERNMENT OR PUBLIC AUTHORITY; 11. FROM DAMAGE WHICH IS t:XPECTED DR INTENDED BY YOU, A RELATIVE, OR ANY PERSON TO. WHQM YOUR COVERED PROPERTY IS ENTRUSTED; 12. IF YOUR COVERED PROPERTY IS ABANDONED; Form No, L1162 (12/94) page 5 of 13 PINE0921952805L 1162094 . 13, TO A TEMPORARY SUBSTITUTE WATERCRAFT OR TRAILER; 14. CAUSED BY THE WEIGHT OF A LOAD EXCEEDING THE RATED CAPACITY OF YOUR COVERED WATERCRAFT OR TRAILER; 15, WHILE YOUR COVERED WATERCRAFT IS USED AS A PERMANENT OR PRIMARY RESIDENCE; 16, ARISING OUT OF AN ACCIDENT WHILE A PERSON IS EMPLOYED OR OTHERWISE ENGAGED IN THE BUSINESS OF SELLING, REPAIRING. SERVICING, STORING OR MOVING WATERCRAFT, INCLUDING TESTING AND DELIVERY; - 17. DAMAGE TO SAILS; OR 18, IF YOUR COVERED WATERCRAFT IS NOT KEPT IN A SAFE AND NAVIGABLE CONDITION WHENEVER AFLOAT AND/OR BEING OPERATED, LIMIT OF LIABILITY Our Limit of Liability for loss will be the lesser of the following amounts: 1. The actual cash value of your covered property at the time of loss; or 2, The amount necessary to repair or replace the property at the time of loss with deduction for depreciation where it applies; or 3, The applicable Limit of Liability as separately shown for the watercraft, motor, or trailer (including permanent equipment) on the Declaration Page, A separate Limit of Liability applies to each of the watercraft, motor, trailer and personal effects as selected by you on the Application, The Limit of Liability listed on the Declaration Page as applying to personal effects applies to all loss to all personal effects resulting from a single Toss, Our payment will be reduced by any applicable deductible shown on the Declaration Page. Only one deductible will apply to all damages arising from anyone loss. PAYMENT OF LOSS We may make payment for a loss to you or to the owner of the property, We may pay for loss in money or repair or replace the damaged or stolen property, We may, at our expense, return any stolen property to you or to the address shown on the Declaration Page. If we return stolen property, we will pay for any damage resulting from the theft, We may keep all or part of the property at an agreed or appraised value, but there shall be no abandonment to us, We are not obligated to pay for any diminution of value once the property has been repaired, You will be obligated to pay all storage charges once the property has been repaired or we have paid you for the loss in money. Payment for a loss is required only if you have paid the premium due us and have fully complied with the terms of this policy, NO BENEFIT TO BAILEE We will not recognize any assignment or grant any coverage for the benefit of any person or organization holding, storing or transporting your property for a fee regardless of any other provision of this policy, OUR OPTION TO REPAIR If the hull of your covered property is made in whole or in part of plywood, plastic, fiberglass, metal, aluminum or other molded material, we have the option of limiting payment for hull damage to the reasonable cost of applying suitable patches to the damaged area, in accordance with good repair practice, APPRAISAL If you and we fail to agree on the amount oT loss, either may demand an appraisal of the loss, In this event, each party will select a competent and disinterested appraiser. If the appraisers agree on the amount of the Form No, L1162 (12194) page 6 of 13 PINE0921952B05L1162C94 " loss, they shall submit a written report to us and, subject to the provision contained within the Limit of Liability in this Section A, this shall be deemed to be the amount of the loss. If the appraisers cannot agree within a reasonable time, they shall then choose a competent impartial umpire. provided that if they cannot agree on an umpire within fifteen (15) days. either you or we may petition a judge of a court having jurisdiction to choose an umpire. The disagreement of the appraisers shall then be submitted to the umpire. Subject to the provisions contained within the limit of Liability In this Section A, a written agreement signed by two of these three shall be deemed to be the amount of the loss, Each party will pay its chosen appraiser, and bear the expenses of the appraisal and ~mpire equally. We do not waive any of our rights under this policy by agreeing to an appraisal. OTHER INSURANCE If there is other applicable insurance on a loss covered by this SECTION A . PHYSICAL DAMAGE COVERAGE, we will pay only our share of the loss. Our share is the proportion that our Limit of Liability bears to the total limits of all applicable insurance. SECTION B . WATERCRAFT LIABILITY COVERAGE If you pay us a premium for Watercraft Liability Coverage, we will pay damages, OTHER THAN PUNITIVE OR EXEMPLARY DAMAGES, for which a covered person is legally liable because of bodlfy injury or property damage arising out of an accident. We will defend any lawsuit for damages payable under this policy or settle any claim for those damages that we think appropriate. We are not obligated to defend any lawsuit or make any additional payments after we have paid or oHered to pay the Limit of Liability for this coverage. We have no duty to defend any lawsuit or settle any claims for bodily Injury or property damage not covered under this policy, ADDITIONAL DEFINITION USED IN THIS SECTION ONLY 1, "Covered person" as used in this Section S means: a. You or any relative with respect to an accident involving any watercraftj and b. Any person using your covered watercraft with your permission, If within the scope of your permission. ADDITIONAL PAYMENTS In addition to our Limit of Liability as shown on the Declaration Page, we will pay on behalf of a covered person: 1. All costs we incur in the settlement of any claim or defense of any lawsuit subject to other limitations of this policy; 2, Premiums on bonds required in any lawsuit we defend, but not for bond amounts greater than our limit of Liability for this coverage. We are not obligated to apply for or furnish any bond; 3. Reasonable expenses incurred by any covered person at our request, including actual loss of earnings (but not loss of other income) up to $50 per day, for assisting us in the investigation or defense of any claim or suit; 4, Interest, on amounts payable under Section S of this policy up to our Limit of Liability under this Section S, accruing after entry of judgment in any lawsuit we defend before we have paid or tendered payment of that portion of the judgment which does not exceed our Limit of Liability for this coverage; 5, Reasonable expenses incurred by any covered person for first aid to others at the time of accident. Fonn No. L1162 (12/94) page 7 of 13 PINE0921952805L 1162094 EXCLUSIONS WE DO NOT PROVIDE WATERCRAFT LIABILITY COVERAGE, AND OUR DUTY TO DEFEND DOES NOT APPLY TO: 1, BODILY INJURY OR PROPERTY DAMAGE EXPECTED OR INTENDED BY ANY COVERED PERSON OR AT THE DIRECTION OF ANY COVERED PERSON: 2, BODILY INJURY OR PROPERTY DAMAGE ARISING OUT OF THE OWNERSHIP, MAINTENANCE OR USE OF ANY WATERCRAFT WHILE RENTED TO OTHERS OR WHILE BEING USED TO CARRY PERSONS OR PROPERTY FOR A FEE; 3, BODILY INJURY OR PROPERTY DAMAGE CAUSED DIRECTLY OR INDIRECTLY BY WAR, INCLUDING UNDECLARED WAR, CIVIL WAR, INSURRECTION, REBELLION, REVOLUTION, WARLIKE ACT BY A MILITARY FORCE OR MILITARY PERSONNEL, DESTRUCTION OR SEIZURE OR USE FOR A MILITARY PURPOSE, AND INCLUDING ANY CONSEQUENCE OF ANY OF THESE, DISCHARGE OF A NUCLEAR WEAPON SHALL BE DEEMED A WARLIKE ACT EVEN IF ACCIDENTAL; 4, BODILY INJURY OR PROPERTY DAMAGE CAUSED BY ANY PERSON USING A WATERCRAFT WITHOUT THE PERMISSION OF THE OWNER OR A PERSON HAVING LAWFUL POSSESSION, OR CAUSED BY ANY PERSON EXCEEDING THE SCOPE OF PERMISSION GRANTED; 5, BODILY INJURY OR PROPERTY DAMAGE ARISING OUT OF THE OWNERSHIP, MAINTENANCE OR USE OF ANY WATERCRAFT, OTHER THAN A SAILBOAT, WHILE BEING USED IN AN ORGANIZED OR PRE.ARRANGED RACE, SPEED TEST, OR SKI CONTEST; 6, BODILY INJURY OR PROPERTY DAMAGE ARISING OUT OF PARASAILlNG, KITE SKIING OR ANY OTHER ACTIVITY INVOLVING A DEVICE DESIGNED FOR FLIGHT; 7, BODILY INJURY OR PROPERTY DAMAGE ARISING OUT OF THE USE OF WATER SLEDS, BOARDS, INNERTUBES, TUBES, TIRES, OR ANY OTHER DEVICE, EXCEPT FOR WATER SKIS, WHICH IS USED IN PLANING OVER WATER WHILE BEING TOWED BY A WATERCRAFT: 8, BODILY INJURY OR PROPERTY DAMAGE ARISING WHILE THE WATERCRAFT IS BEING TRANSPORTED BY LAND; 9, BODILY INJURY TO YOU, A RELATIVE, A COVERED PERSON, OR A RELATIVE OF A COVERED PERSON: 10, BODILY INJURY OR PROPERTY DAMAGE WHEN ANY COVERED PERSON UNDER THIS POLICY IS ALSO INSURED UNDER A NUCLEAR ENERGY LIABILITY POLICY WHETHER OR NOT ITS LIMITS HAVE BEEN EXHAUSTED; 11, BODILY INJURY TO ANY PERSON ELIGIBLE TO RECEIVE BENEFITS REQUIRED TO BE PROVIDED OR VOLUNTARILY PROVIDED BY A COVERED PERSON UNDER ANY WORKERS' OR WORKMEN'S COMPENSATION LAW, NON.OCCUPATIONAL DISABILITY OR OCCUPATIONAL DISEASE LAW OR ANY SIMILAR LAW, OR THE FEDERAL LONGSHOREMEN'S AND HARBOR WORKERS' COMPENSATION ACT; 12. PROPERTY DAMAGE TO PROPERTY OWNED BY A COVERED PERSON OR RENTED TO, OCCUPIED OR USED BY, OR IN THE CARE OF A COVERED PERSON. THIS EXCLUSION DOES NOT APPLYTO A LAUNCHING RAMP, DOCK, OR BOAT STORAGE HOUSE RENTED EXCLUSIVELY TO YOU: 13, BODILY INJURY OR PROPERTY DAMAGE ARISING OUT OF THE OWNERSHIP, MAINTENANCE OR USE OF ANY WATERCRAFT WHILE IT IS USED FOR COMMERCIAL OR BUSINESS PURPOSES; 14, BODILY INJURY OR PROPERTY DAMAGE ARISING OUT OF AN ACCIDENT WHILE A PERSON IS EMPLOYED OR OTHERWISE ENGAGED IN THE BUSINESS OF SELLING, REPAIRING, SERVICING, STORING OR MOVING WATERCRAFT INCLUDING TESTING AND DELIVERY; Form No, L1162 (12194) page 8 of 13 PINE0921952805L 1162C94 15, THE OWNERSHIP, MAINTENANCE OR USE OF ANY WATERCRAFT, OTHER THAN YOUR COVERED WATERCRAFT, WHICH IS: a. OWNED BY YOU OR FURNISHED OR AVAILABLE FOR YOUR REGULAR USE; OR b. OWNED BY OR FURNISHED OR AVAILABLE FOR THE REGULAR USE BY ANY RELATIVE, HOWEVER, PART (b) OF THIS EXCLUSION DOES NOT APPLY TO YOU. 16, LIABILITY ASSUMED BY A COVERED PERSON UNDER ANY CONTRACT OR AGREEMENT, 17, BODILY INJURY OR PROPERTY DAMAGE SUSTAINED WHILE OCCUPYING A WATERCRAFT WHILE USED AS A PERMANENT OR PRIMARY RESIDENCE; 18, BODILY INJURY OR PROPERTY DAMAGE OCCURRING WHILE YOUR COVERED WATERCRAFT IS USED IN ANY ILLEGAL ACTIVITY OR ILLICIT TRANSPORTATION OR TRADE; OR LIMIT OF LIABILITY Regardless of the number of covered persons, claims made, premiums shown on the Declaration Page, watercraft involved in the accident, or lawsuits brought, we will pay no more than the Limits of Liability shown on the Declaration Page, subject to the following: 1. The Limit for "each person" is the maximum we will pay for bOdily Injury sustained by any ene person in anyone accident, and only the limit for "each person" will apply to the aggregate of claims made for such bodily injury and any and all claims derived from such bodily injury including, but not limited to, loss of society, loss of companionship, loss of services, loss of consortium, and wrongful death; 2, Subject to the bodily Injury Limit for" each person," the Limit for" each accident" is the maximum we will pay for bodily Injury sustained by two or more persons in anyone accident and includes all ' derivative claims which include, but are not limited to, loss of society, loss of companionship, loss of services, loss of consortium, and wrongful death;,:: " , 3, The property damage Limit for "each accident" is the maximum we will pay for all property damage in one accident. If your Declaration Page indicates that Combined Single Limits apply, the maximum',-::, we will pay for the aggregate of all damages resulting from anyone accident is the Combined Single", ' Limit shown on the Declaration Page. .' '.. .-" OTHER INSURANCE SUbject to our Limit of Liability, if there is other applicable insurance, we will pay only our share of the loss, ," Our share is the proportion that our Limit of Liability bears to the total of all applicable limits. However, any,::'c: insurance we provide with respect to a watercraft you do not own shall be excess over any other collectible, " ' insurance, SECTION C . MEDICAL PAYMENTS COVERAGE If you pay us a premium for Medical Payments Coverage, we will pay reasonable and necessary medical, expenses incurred by a covered person because of bodily Injury caused by an accident and sustained by that covered person. We will pay only those medical expenses incurred within one (1) year from the date of the accident. ADDITIONAL DEFINITIONS USED IN THIS SECTION ONLY 1. "Covered person" as used in this Section C means: a. You or any relative while occupying any watercraft while it is in the water or while it is in the process of being launched or removed from the water; or b, Any other person while occupying your covered watercraft while it is in the water or while it is in the process of being launched or removed from the water, Provided, however, that your Form No. L1162 (12/94) page 9 of 13 P/NE0921952805L1162C94 covered watercraft is being operated with your express permission and within Ihe SCope of such permission, Persons being lowed by the boat in any manner, including but not limited to water skiers and individuals on water sleds, boards, innertubes, tubes, or tires, are excluded from Medical Payments coverage unless Waler Skiers Medical Payments Coverage is included on the Declaration Page and an additional premium is paid, 2, "Medical expenses" means reasonable charges for medical, surgical, x-ray, dental, ambulance, hospital, professional nursing, prosthetic devices and funeral services, EXCLUSIONS WE DO NOT PROVIDE MEDICAL PAYMENTS COVERAGE FOR ANY PERSON FOR BODILY INJURY: 1. EXPECTED OR INTENDED BY ANY COVERED PERSON OR AT THE DIRECTION OF A COVERED PERSON; 2, ARISING OUT OF THE OWNERSHIP, MAINTENANCE OR USE OF ANY WATERCRAFT WHILE RENTED TO OTHERS OR WHILE BEING USED TO CARRY PERSON OR PROPERTY FOR A FEE; 3, CAUSED DIRECTLY OR INDIRECTLY BY WAR, INCLUDING UNDECLARED WAR, CIVIL WAR, INSURRECTION, REBELLION, REVOLUTION, WARLIKE ACT BY A MILITARY FORCE OR MILITARY PERSONNEL, DESTRUCTION OR SEIZURE OR USE FOR A MILITARY PURPOSE, AND INCLUDING ANY CONSEQUENCE OF ANY OF THESE, DISCHARGE OF A NUCLEAR WEAPON SHALL BE DEEMED A WARLIKE ACT EVEN IF ACCIDENTAL; 4. ARISING OUT OF THE OWNERSHIP, MAINTENANCE OR USE OF A WATERCRAFT, OTHER THAN A SAILBOAT, WHILE BEING USED IN AN ORGANIZED OR PRE-ARRANGED RACE, SPEED TEST, OR SKI CONTEST; 5. SUSTAINED WHILE OCCUPYING ANY WATERCRAFT WHEN IT IS BEING USED FOR COMMERCIAL OR BUSINESS PURPOSES; 6. SUSTAINED WHILE OCCUPYING ANY WATERCRAFT, OTHER THAN YOUR COVERED WATERCRAFT, WHICH IS: a. OWNED BY YOU OR FURNISHED OR AVAILABLE FOR YOUR REGULAR USE; b, OWNED BY OR FURNISHED OR AVAILABLE FOR THE REGULAR USE BY A RELATIVE; 7, FOR WHICH THAT PERSON IS ELIGIBLE TO RECEIVE ANY BENEFITS REQUIRED TO BE PROVIDED OR, VOLUNTARILY PROVIDED UNDER ANY WORKERS' OR WORKMEN'S COMPENSATION LAW, NON-OCCUPATIONAL DISABILITY OR OCCUPATIONAL DISEASE LAW OR SIMILAR LAW, OR THE FEDERAL LONGSHOREMEN'S AND HARBOR WORKERS' COMPENSATION ACT; , 8. CAUSED BY ANY NUCLEAR REACTION, RADIATTON OR RADIOACTIVE CONTAMINATION, ALL WHETHER CONTROLLED OR UNCONTROLLED OR HOWEVER CAUSED, OR ANY CONSEQUENCE OF ANY OF THESE; 9, SUSTAINED WHILE THE WATERCRAFT IS BEING TRANSPORTED BY LAND; 10, SUSTAINED WHILE PARASAILlNG, KITE SKIING OR BEING TOWED IN ANY OTHER DEVICE DESIGNED FOR FLIGHT; 11, SUSTAINED WHILE OCCUPYING A WATERCRAFT WHILE USED AS A PERMANENT OR PRIMARY RESIDENCE; 12, WHILE INVOLVED IN A FELONY OR ANY ILLEGAL ACTIVITY; Fonn No, Ll162 (12/94) page 10 of 13 PINE0921952805L 1162C94 J 13, ARISING OUT OF AN ACCIDENT WHILE A PERSON IS EMPLOYED OR OTHERWISE ENGAGED IN THE BUSINESS OF SELLING, REPAIRING, SERVICING, STORING OR MOVING WATERCRAFT, INCLUDING TESTING AND DELIVERY; OR /''', , LIMIT OF LIABILITY The Limit of Liability shown on the Declaration Page for this coverage is the maximum we will pay for each person injured in anyone accident. This is the most we will pay regardless of the number of covered persons, claims made, premiums shown on the Declaration Page, or watercraft involved in the accident. Any amounts otherwise payable for expenses under this coverage shall be reduced by any amounts paid or payable for the same expenses under Section B . Watercraft Liability Coverage or the Uninsured Boaters Coverage Endorsement, if applicable. No payments will be made unless the injured person or that person's legal representative agrees in writing that any payment shall be applied toward any settlement or judgment that person receives under Section B . Watercraft Liability Coverage or the Uninsured Boaters Coverage Endorsement, if applicable, OTHER INSURANCE If there is other applicable insurance which would apply for medical or funeral expenses, the insurance under this Section shall be excess over any other collectible insurance, We will not be liable under this policy for any medical expenses paid or payable under the provisions of any; 1, premises insurance providing coverage for medical expenses; 2, individual, blanket, or group accident, disability or hospitalization plan; 3, medical, surgical, hospital or funeral services benefit or reimbursement plan; or 4. Workers' Compensation or Disability Benefits law or any similar law, SECTION D - GENERAL PROVISIONS 1. POLICY PERIOD This policy applies only to accidents and losses which occur during the policy period as shown on the Declaration Page, and within the policy territory. 2, POLICY TERRITORY The policy territory is land, tributaries, inland lakes, bays and rivers of the continental United States or Canada, No coverage is granted hereunder when operating in coastal waters, oceans, seas or gulfs, 3, CHANGES This policy with the Declaration Page and Application includes all the agreements between you and us relating to this insurance. No change or waiver may be affected except by written endorsement issued by us. The premium for each term of this policy is determined by information in our possession at the inception date of that term, Any change in this information which would affect the rating of your policy gives us the right to make an additional charge or refund on a pro-rata basis. You have a duty to inform us of any such change, 4, LEGAL ACTION AGAINST US No suit or action whatsoever or any proceeding instituted or processed in arbitration shall be brought against us for the recovery of any claim under this policy unless the insured or hisiher legal representative has fully complied with all the terms of the policy and unless such suit, action or proceeding is commenced within two years of the date of the accident. We may not be sued under Section B . Watercraft Liability Coverage until the obligation of a covered person to pay is finally determined either by judgment against that person or by written agreement of the covered person, the Form No, L1162 (12194) page 11 of 13 PINE0921952B05Llle2C94 claimant and us. No one shall have any right to make us a party to a lawsuit to determine the liability of a covered person. 5. TRANSFER OF YOUR INTEREST IN THIS POLICY Your interest in this policy may not be assigned without our written consent, If the person named on the Declaration Page dies. the policy will provide the same coverages until the end of the policy period for: a. Your surviving spouse, if a resident of your household at the time of death; and b. Your legal representative while acting within the scope of duties of a legal representative, .;r:4, 6, OUR RIGHT TO RECOVER PAYMENT In the event of any payment under this policy, we are entitled to all the rights of recovery that the covered person to whom payment was made has against another. That covered person must sign and deliver to us any legal papers relating to that recovery. so whatever else is necessary to help us exercise those rights, and do nothing after loss to prejudice our rights, When a covered person has been paid by us under this policy and also recovers from another, the amount recovered from the other shall be held by that covered person in trust for us and reimbursed to us to the extent of our payment, less reasonable attorney fees and a proportionate share of the cost of recovery, In the event recovery has already been made from the responsible party without our written consent, that covered person's rights to payment under any coverage under this policy will no longer exist. 7. TWO OR MORE POLICIES If this policy and any other policy issued to you by us apply to the same accident or loss, the maximum limit of our liability under all the pOlicies shall not exceed the highest applicable limit of liability under any one policy, You cannot stack coverages or policies, 8, RENEWAL PROVISIONS Renewal of this policy is subject to our consent. When we consent to renew this policy, you must pay the renewal premium in advance, Your policy will expire, and you will have no coverage, if we do not receive the required payment by the renewal date, 9, CANCELLATION AND NON-RENEWAL PROVISIONS The Company may cancel the policy by mailing to the insured. at the address shown in the policy or at a forwarding address, written notice of cancellation at least 30 days prior to the proposed cancellation date, If this policy has been in effect for 60 days or more, or if it is a renewal of a policy issued by this Company, effective immediately, the Company will exercise its rights to cancel only for one or more of the following reasons: a. the policy was obtained through material misrepresentation, fraudulent statements, omissions or concealment of fact material to the acceptance of the risk or to the hazard assumed by the Company; b, there has been a substantial change or increase in hazard in the risk assumed by the Company subsequent to the date the policy was issued; c. there is a substantial increase in hazards insured against by reason of willful or negligent acts or omissions by the insured; d, the insured has failed to pay any premium when due, whether such premium is payable directly to the Company or its agent or indirectly under any premium finance plan or extension of credit; or e, for any other reasons approved by the Pennsylvania Insurance Commissioner, Form No, L11S2 (12194) page 12 of 13 PINE0921 9S2805L 11 62C94 J This provision shall not apply if the named insured has demonstrated by some overt action to the insurer or its agent that the insured wishes the policy to be canceled. This Company will not fail to renew this policy with the types and limits of coverage at least equal to those contained in the policy being superseded while this Company is issuing policies for this kind and class of insurance in the State of Pennsylvania except for one of the reasons referred to in the Cancellation Provision of this Endorsement. and the Company may refuse to renew for one of the listed reasons. by mailing to the insured at the address shown in the policy or at a forwarding address. written notice of such nonrenewal alleast 30 days prior to the termination date of this policy, This provision shall not apply if: a. this Company has indicated its willingness to renew and the insured has failed to pay the premium by the due date; or b, the named insured has indicated to the insurer or its agent that the insured does not wish the policy to be renewed. Delivery of such written notice by the Company to the insured at the address shown in the policy or at a forwarding address shall be equivalent to mailing, Upon cancellation, you may be entitled to a premium refund. If the premium refund is $5.00 or less, no refund will be sent unless you specifically request a refund. Upon cancellation, if you owe the company $5.00 or less. we will waive the amount due. Our making or offering of a refund is not a condition of cancellation. If cancellation is for non-payment of premium or at your request, the earned premium shall be computed in accordance with our short-rate table as filed with the Pennsylvania Department of Insurance, The effective date of cancellation stated in a notice is the end of the policy, 10. FRAUD AND MISREPRESENTATION This poliCY shall be void at inception if you, anyone acting on your behalf, or any covered person has concealed or misrepresented any material fact, or if any fraud is committed or attempted concerning any matter regarding this policy or application, whether before or after a loss. 11. BANKRUPTCY We are not relieved of any obligation under this policy because of the bankruptcy or insolvency of any covered person. 12. TERMS OF POLICY CONFORM TO STATUTES Terms of this policy which conflict with the statutes of the state in which this policy is issued are hereby amended to conform to those statutes. In Witness Whereof, we have caused this policy to be executed and attested, (1JHsaa secretary ~~ Form No, L1162 (12194) page 13 of 13 PINE09219S2805L 11 62C94 .. OTt-fi:R INSURANCE If at the tima of loss there is available any other insurance which would apply in the absence of this Coverage, the insurance under this policy will apply only as excess over the other insurance, ARBITRATION a covered person and we have not reached an agreement (1) that the covered person is legally entitled to recover damages from the owner or operator of an uninsured boat, or (2) as to the amount of payment under this Coverage, the covered person shall make written demand upon us within two (2) years from the date of the accident that the issue be determined by arbitration, In that event, the matler or matters upon which an agreement has not been reached shall be determined by arbitration conducted in accordance with the rules of the American Arbitration Association unless other means of conducting the arbitration are agreed to by the covered person and us subject to the terms of this insurance, No lawsuit or action whatsoever or any proceeding in arbitration shall be brought against us for the recovery of any claim under this Endorsement unless the covered person has satisfied all of the things that covered person is required to do under this policy and unless the lawsuit or arbitration is commenced within two (2) years fr':lm the date of the accident. TRUST AGREEMENT If we make payment under this Endorsement: 1. we are entitled to recover from the covered person an amount equal to such payment if there is a legal settlement made on the covered person's behalf against any person or organization iegally responsible for the bodily Injury; 2. the covered person must hold in trust for us all rights to recover money which the covered person has against any person or organization legally responsible for the bodily Injury; the covered person must do everything proper to secure our rights and do nothing to prejudice these rights; and we ask the covered person in writing, the covered person agrees to and shall take necessary or appropriate action, through a representative designated by us, to recover payment as damages from the responsible person(s) or organization, If there is a recovery, we shall be reimbursed out of the recovery for expenses, costs and attorney fees incurred in connection with this recovery; and the covered person must execute and deliver to us any legal instruments or papers necessary to secure the rights and obligations of the covered person and us as established in this Endorsement. All other terms and conditions of this polley remain unchanged. , 4. 5, Form No, LS027PA (3'92) PINEOS22S52603LS027P A WATER SKIER'S MEDICAL PAYMENTS ENDORSEMENT If you pay us a premium for Water Skier's Medical Payments Coverage, we agree with you to change Section C . Medical Payments as follows: The definition of covered person is deleted and replaced with the following: Covered person means: . 1. you or any relative while occupying any watercraft while it is in the water or while it is in the process of being launched or removed from the water. 2. any other person while occupying your covered watercraft while it is in the water or while it is in the process of being launched or removed from the water. 3, you or any relative while on water skis or a water sled being towed by any watercraft. 4. any other person while on water skis or a water sled being towed by your covered watercraft. Section C, Exclusions 4, 6, and 7 are deleted and replaced with the following: 4. Sustained while occupying any watercraft or while on water skis or a water sled being towed by a watercraft without a reasonable belief that the person is entitled to do so, 6, Sustained while occupying any watercraft or while on water skis or a water sled being towed by a watercraft when It is being used for commercial or business purposes. I, Sustained while occupying any watercraft other than your covered watercraft or while on water skis or a water sled being towed by any watercraft other than your covered watercraft which is: a, owned by you or furnished or available for your regular use; b, owned by or furnished or available for the regular use of a relative. All other definitions, terms and conditions of this Polley remain unchanged, Fonn No, L9028PA (9'89) PINE0922952603L9028PA ROADSIDE ASSISTANCE COVERAGE ENDORSEMENT rlOADSIDE ASSISTANCE COVERAGE INSURING AGREEMENT If this endorsement is shown on your Declarations Page, we will pay reasonable and necessary costs for towing to the nearest qualified repair facility and roadside labor incurred by you or a relative for disablements of your , covered vehicle while towing your covered watercraft due to a covered emergency. ADDITIONAL DEFINITIONS When used in this Roadside Assistance Coverage Endorsement: 1, "Covered vehicle" means: a. any vehicle used to tow your covered trailer; b. your covered trailer. However, your covered vehicle does not include: a. off.road vehicles not subject'io motor vehicle registration and licensing. b. vehicles used for business or commercial purposes, 2, "Covered emergency" means a disablement that is a result of: a. mechanical or electrical breakdown; b. battery failure; c. insufficient supply of fuel, oil, water, or other fluid; d. flat tire; e. lock-out; or f. entrapment in snow, mud, or sand within 100 feet of a road or highway. .:xCLUSIONS Coverage under this endorsement does not apply to: 1, cost of parts, replacement keys, fluid, lubricants, or fuel; 2. cost of installation of products, material, and additional labor not related to towing; 3. mechanical assistance exceeding sixty (60) minutes; 4. any and all fines; 5. expenses incurred for transportation or temporary living expenses; 6. towing or storage _charges related to impoundment, abandonment, illegal parking, or other violations of law; 7. assistance with jacks, levelers, airbags, or awnings; 8. damage due to fire, flood, or vandalism; 9. towing from or repair work performed at a service station, garage, or repair shop; 10. towing by other than an authorized service provider; 11, vehicle storage charges; 12. a second tow for a single disablement; 13, service on your vehicle that is not in a safe condition to be serviced; 14, disablements on roads not regularly maintained, such as sand beaches, open fields, and areas designated as not passable due to construction; 15, mounting or removing of snow tires or chains; 16, tire repair; 17. repeated service calls for your vehicle in need of routine maintenance or repair; 18. disablements that result from the willful acts or actions of the operator of your vehicle; 19, disablement not resulting from a covered emergency; 20, disablements resulting from the use of intoxicants or narcotics; 21. disablements when your vehicle is used in the commission of a felony, ALL OTHER DEFINITIONS, TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED Form No, 9864 (12196) PINE0401972603L9864C96 ~I ., UNINSURED BOATERS COVERAGE ENDORSEMENT , ,I you pay us a specific premium for Uninsured Boaters Coverage. we will pay damages, OTHER THAN PUNITIVE OR EXEMPIJI.RY DAMAGES OR ATTORNEY FEES, for bodily Injury to a covered person which that person is legally entitled to recover from the owner or operator of an uninsured boat up to the Limit of Liability as defined in this Endorsement, The bodily Injury must be caused by accident and arise out of the ownership, maintenance or use of an uninsured boat. Determination whether a covered person is legally entitled to recover damages and the amount of damages shall be made by agreement between the covered person and us. If no agreement is reached, the decision shall be made by arbitration. SUCH ARBITRATION MUST BE DEMANDED IN WRITING WITHIN T\NO YEARS AFTER THE DATE OF THE ACCIDENT. If a lawsuit is brought without our written consent to determine legal liability or damages. or brought with our written consent to determine legal liability or damages and a default judgment is entered, we are not bound by any resulting judgment. ADDITIONAL DEFINITIONS USED FOR THIS COVERAGE ONLY "Covered Person" as used in this endorsement means: 1. you or any relative: 2. any other person occupying your covered watercraft. "Uninsured boat" means a boat or watercraft: to which no bodily injury liability policy applies at the time of the accident; or" 2. to which a bodily injury liability policy applies at the time of the accident, but the insuring company denies' coverage or is or becomes inSOlvent; or 3. which is a hit-and-run boat or watercraft whose operator or owner cannot be identified and which strikes: a, you or any relative; or b. a watercraft which you or any relative are occupying: or c. your covered watercraft, provided that the covered person or someone on his or her behalf must report the accident to the Coast Guard or police within twenty-four (24) hours. However. an uninsured boat does not include any boat or watercraft owned by or furnished or available for regular or frequent use by you or any relative. All other definitions of this policy remain unchanged. EXCLUSIONS WE DO NOT PROVIDE UNINSURED BOATERS COVERAGE FOR BODILY INJURY SUSTAINED BY' ANY PERSON: 1, WHILE OCCUPYING, OR WHEN STRUCK BY, ANY BOAT OR WATERCRAFT OWNED BY YOU OR ANY RELATIVE: 2. IF THAT PERSON OR THE LEGAL REPRESENTATIVE OF THAT PERSON MAKES A SETTLEMENT OR PROSECUTES ANY ACTION TO JUDGMENT WITHOUT OUR WRITTEN CONSENT; Form No, L9027PA (3-92) PINE0922952603L9027PA WHILE OCCUPYING ANY BOAT OR WATERCRAFT WHEN IT IS BEING USED TO CARRY PERSONS OR PROPERTY FOR A FEE OR IS RENTED TO OTHERS; WHILE USING OR OCCUPYING ANY BOAT OR WATERCRAFT WITHOUT THE PERMISSION OF THE OWNER OR A PERSON HAVING LAWFUL POSSESSION, OR CAUSED BY ANY PERSON EXCEEDING THE SCOPE OF PERMISSION GRANTED; OR 5, WHILE OCCUPYING ANY BOAT OR WATERCRAFT WHILE IT IS BEING USED FOR COMMERCiAL OR BUSINESS PURPOSES, 3. 4. "~".'. THIS COVERAGE WILL NOT APPLY DIRECTLY OR INDIRECTLY TO BENEFIT ANY INSURED OR SELF.INSURER UNDER ANY WORKERS' COMPENSATION LAW, DISABILITY BENEFITS LAW OR SIMILAR Lo,W, ' LIMIT OF LIABILITY The Limit of Liability shown on the Declaration Page for this Coverage is the maximum we will pay for all bodily Injury resulting from anyone accident. This is the most we will pay regardless of the number of covered persons, claims made, watercraft insured, separate premiums paid, watercraft involved in the accident or lawsuits brought. The Limit will apply to the aggregate of claims made for such bodily Injury and any and all claims derived from such bodily Injury including, but not limited to, loss of society, loss of companionship, loss of services, loss of consortium, and wrongful death, Any amounts otherwise payable under this Coverage shall be reduced by: 1. all sums paid because of bodily injury by or on behalf of persons or organizations who may be legally responsible, This includes all sums paid under Section B - Watercraft Liability Coverage of this policy; 2. all sums paid under Section C . Medical Payments Coverage of this policy; and 3, all sums paid or payable under a workers' compensation law, disability benefits law, or any similar law, Any payment under this Coverage to or for a covered person will reduce any amount that person is entitled to recover under Section B - Watercraft Liability Coverage or Section C - Medical Payments Coverage of this policy. PROOF OF CLAIM: DUTIES The "Your Duties in Case of Accident or Loss" Section of your policy applies to this Coverage, and under this. coverage: 1. Each person making claim must give us full details of their injuries and treatment. Proof of claims shall be submitted on forms provided by us unless we fail to provide them within fifteen (15) days after notice of .the claim, 2. Such person shall, after each request from us, execute authorizations to enable us to obtain medical reports and records relating to employment. 3. Such person shall initiate suit against the uninsured boat owner or operator at our request to protect all legal rights such person making claim or we have against such an uninsured boat owner or operator. 4, If a person making claim under this Coverage undertakes any legal action against the uninsured boat owner or operator, such person making claim shall provide written notice to us advising us of such action. Form No, L9027PA (3'92) PINE0922952603L9027PA ! REPLACEMENT COST PERSONAL EFFECTS COVERAGE ENDORSEMENT If this endorsement is shown on the Declaration Page of your policy, and premium has been paid for this coverage we agree with you to amend the SECTION A . PHYSICAL DAMAGE COVERAGE: ADDITIONAL COVERAGES, Personal Effects section of your policy as follows: DEFINITIONS: 1, Portable Boating Equipment means your detachable boating equipment usually required on board for the operation or upkeep of a, watercraft including anchors, oars, oarlocks, tarpaulins, boat and motor covers, lights, fire extinguishers, extra fuel tanks, bilge pumps, cookstoves, deck chairs, extra batteries, horns, flares, hand tools, convertible tops, and seat cushions while such equipment is attached to or contained in or 00 your covered watercraft. Portable boating equipment includes water skiing equipment, and portable electronic equipment specifically designed for marine use. Portable Boating Equipment is considered part of the covered watercraft, It does not include: portable electronic equipment not specifically for marine use, photographic equipment, fishing gear, and other sporting equipment and personal effects. 2. Personal Effects means clothing, miscellaneous personal property, fishing gear (up to a $300 limit) and sports equipment which belongs to you or a relative, 3. Coverage provided . Personal Effects are insured while on board the insured watercraft and while being carried on and oft, We will not cover money, jewelry, travelers checks, or other valuable papers or documents (ie: securities, stamp or coin collections, etc.), ~xcept as otherwise provided in your policy or in this endorsement, we will pay, for a personal effects loss, up to the ,mallest of the following amounts: 1. The amount necessary to replace your property with new property at the time of loss up to the amount shown on your declaration page (except for the fishing gear limit noted above). If you decide not to replace your property, we will pay the actual cash value at the time of loss, 2, The amount for which your property could reasonably be repaired to its condition immediately before the loss without depreciation, If you decide not to repair your property payment will be made on actual cash value basis. You may make another claim within 180 days after the loss for an additional payment if you decide to repair your property. All claims must have been a result of the original loss, We may settle the loss by: a, Paying the amount of coverage in money; or b, Paying the cost of repairing the damage; or c, Replacing the damaged or lost property with property of like description, condition, quality and value, Our payment will be reduced by any applicable deductible. ALL OTHER DEFINITIONS, TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED. Form No. 6017 (11-95) PINE0118962603L6017B95 MEXICO COVERAGE ENDORSEMENT '..~,. :'.:-::;-'.'':':';~;. .' WARNING WATERCRAFT ACCIDENTS IN MEXICO ARE SUBJECT TO THE LAWS OF MEXICO, NOT THE LAWS OF THE UNITED STATES. UNDER MEXICAN LAW, WATERCRAFT ACCIDENTS ARE CONSIDERED A ' CRIMINAL OFFENSE AS WELL AS A CIVIL MATTER. THE COVERAGE WE PROVIDE YOU BY THIS ENDORSEMENT DOES NOT MEET MEXICAN INSURANCE REQUIRMENTS. YOU ARE REQUIRED TO PURCHASE LIABILITY INSURANCE THROUGH A LICENSED MEXICAN INSURANCE COMPANY FOR THIS ENDORSEMENT TO APPLY. I. COVERAGE With this endorsement, coverage under SECTION A . PHYSICAL DAMAGE COVERAGE afforded to you under this policy is extended to accidents occurring in Mexico or while your covered watercraft is being transported between ports of any state, territory, or possession of the United States of America, any province of Canada, or any state of Mexico. II, SPECIAL CONDITIONS OTHER INSURANCE. The insurance we provide by this endorsement wiil be excess over any other collectible insurance, LOSSES PAYABLE UNDER SECTION A - PHYSICAL DAMAGE. We wiil pay losses under SECTION A _ PHYSICAL DAMAGE COVERAGE in the United States, not in Mexico, If your covered watercraft must be repaired in Mexico in order to be returned to the United States, we wiil not pay more than the actual cash value of such loss at the nearest United States point where the repairs can be made. III. ADDITIONAL EXCLUSIONS A. This endorsement does not apply if liability insurance from a licensed Mexican Insurance Company is not in force at the time of loss, B. We will not pay under SECTION A - PHYSICAL DAMAGE COVERAGE for watercraft repairs made in Mexico unless your covered watercraft cannot be returned to the United States without repairs being made, Form No, L6364(09'94) PINE0922952603L6364994 ClaIm # Policy #, PE ~'/.-:5,.J .6 ~ -.-~ /7 PROGRESSIVE' o ()!J-<;.'t" q I II - I NS- I. ANiA AFFiDAVIT OF PERSONAl. WATERCRAFT, FIRE, THEFT. OR VANDALISM PA STAT, T1 81, ~4117 "ANY PERSON WHO KNOWINGLY AND WITH INTENT TO DEFRAUD ANY INSURANCE COMPANY OR OTHER PER, SON FILES AN APPLICATION FOR INSURANCE OR STATEMENT OF CLAIM CONTAINING ANY MATERIALLY FALSE INFORMATION OR CONCEALS FOR THE PURPOSE OF MISLEADING. INFORMATION CONCERNING ANY FACT MATmlAL THERETO COMMITS A FnAUDULENT INSURANCE ACT. WHICH IS A CRIME AND SUBJECTS SIJCH PERSON TO CRIMINALANO CIVIL PENALTIES: IF ANY INFORMATION PROVIOED IN THIS STATEMENT IS FALSE.. IT MAY BE THE BASIS FOR THE DENIAL OF YOUR CLAIM AND LEGAL ACTION, ALL QUESTIONS MUST BE AN~WERED OR THIS AFFIDAVIT MAY BE REJECT. ED.IF YOUR ANSWER TO A QUESTION IS NOT KNOWN, PLEASE FILL IN "UNKNOWN". IF THE QUESTION DOES NOT APPLY, FILL IN "N/A", Namo 01Insurocit:iLe.J:1Jl1ULLU~w{7.<9JtJ k Drivor's L1conoo ".6:I.2d~K_Slalo Issuod ~ Addross (II p,o, box, Includo pliyslcal addross) Social Socurily " I UN, "f'~.:JJd.J '-iiFLa....S.AzERKIiT--5I _ __ ___ Dolo of BIMh_!i::_,,-~ Morllal Slalu' __ I' l:iI4J(/~'4!J~S ~ Spouso Namo ll1l&E.lIL'liLJ3_1"I1JL/J:;;7/-'" ,,-I ' occupalion:J:io::ZL&d.C:t11"'7'. ""'Il1E"" '/-1"1"111 Spouso Employor Nomo, Addross J/.UJJIJ.fZ Namo. Addross 01 Employor .:.R ~ 1Y1- '_ n~ A In ~ 8,,,7 1:2 "f?T.~ :.!JlJ/lr3'.J.I1Z.Ll.J:l!Idiw.td'l!" /}I Spouso Employer Phono" L-) JlltlJlII:;' Length 01 Present E~ploymcnt-1.1'lJL It-U;t Number of Dependents ...]_- Businoss Phono " lRiJ '/_.!IL . D 1 I,'f.. Numbor of Porsons In Housohold---:2 Currenl Salary .ll.lL:1 Annual Household Incomo JILl' Homo Phone" t'1L1-' 'II. (~ .U,{'o 'I How Long Resldod 01 Currenl Address~,'\-~/H " I. COMPLETE THIS SECTION IF WATERCRAFT WAS STOLEN OR VA~LIZED - When was loss reported 10 Police? Date5vl'\ Jf.~ lime ~,OO AM I By whom? 111,' It. rjt"'\t~I'" I...... Where was police report made? 1'1t Scene 01 Lqs,-? m Police Station ._. Other Location Nnme, loc~~i n 01 Polico Department-i/1il.r!.."-''l\ H'lL....... IJI (.,i j/ 'I }/J I / (f ..:.;. ~~- RepoM "JIL ' IT US Coasl Guard report" --'Ueul' (-- Has waterer It been recovered? 0 Ves ca' No II Ves, where? By whom? d) tl Recovered Condilion----4lLI Did police make any arrests or have any suspects? 0 Ves ;9 No Who? lJ/A Do you suspect anyone? 0 Ves...;Q.,No Who? r II. COMPLETE THIS SECTION FOR WATERCRAFT FIRE Was vessel in operation at ti e of fire? 0 Yes 0 No Where did fire appear to start? ~ Any noises or problem::; such :; loss of power immediately prior to fire? 0 Yes Cl No II yes, dnscribe ,) -,- n w rcraft? 0 Yes 0 No II yes, describe (type, quantity, where stored) ____ _ M 1-1 ----= Was watercraft equi pe I tf cwr.r !:iwitch? 0 Yes 0 No II yes, was switch on at time of Ure? 0 Yes Ci No T~'pe ~f electrical h_ k.~!1'" 11~ 1:1:.__._ Watercraft equippe with f 01 Slut off d vice? CI Yes 0 No Was it all at lime of lire? 0 Yes C) No USCG approved IIr extinguish r on board? a Yes 0 No Was it utilized? C'1 Yes c:J No Whon was Fire DepaMmen! nolI ed? Dalo--1J2.}l-_ Time n I (.\- AM I PM By whom? It~ 1,\- Name. loco lion 01 Fire Doparlmenl J" (J RopoM "JV_~ Did the Police/Fire DepartmenUCoasl guard make any arrests or have any suspects? 0 Yes c:J No Do you suspect anyone? 0 Yes 0 No Who? . 11) (.)- III, COMPLETE ALL ADDITIONAL SECTIONS ~ ,/, Dale 01 laos .5~nl/_ Time -'-too ,I>M I(pM Was cabin 10cked/sOCUred?JfYes 0 No N/~ Were keys lelt in watercraft? 0 Yes ::;;, No ftj'/ Equi cd with nntHhelt device? 0 Yes No II yes. type ' '" Was II ongaged --}IJ f~ Walercrall Operalor's License # Iii app icable) - Slale Issued Amount for which you are making claim $ When was the last lime the vessel was seen ripr to the 10 s? Date J. By whom? (name, address, phone #) i,.ft..//: it. . S'.&. Physlcallocalion 011055 5/0 B. Iv ' Reason watercraft left at this location ::i OVl' (!ff' . Nam ,address, phone # of others resent a!,.Wne 01 loss .5.lt.$Jt~!JOI"... . u,.,'/I. ,Ill,.,. , )(,.,/1. JIl, ~ , ',Y-I- ~ SI 1J'7~, I'?"'-'~ .. . Were person311tems damage or stolen In los~ ,.ves ...Nq, If yes, complete LossNandalism inventory (Fonn #3677 1IW7f Where were lIems slored? c!)c. T, moT...J. . W'l. When? ., Time 10 '?O AM P Hrw \A"'>rl:lI W'\II nntijiprl ,,1 If':\cc:? \A/ho r.:::m::::.... ,'eu?.... , When?' Name, address. ohone # of mlnci e user of watercraft b.l\r.." 1 . 7Ii., H__. ;:;J I; "' 1.:- / ~";-;;~'II/ .- . :J.r ''\ s:- .r/K '/. . ..s/. . - f 1/ /.Ia /" t.';oj ,- I / 'J ,I"/'L.J. - .';.',A'I ~,L. Was watercraft ever~1ed for racinto~iPEl~d contest? 0 Yes YI No ."ll yes, how alien? ~J. Year 01 Watercraft Make: ,/" ,'.,,- Model WI tI !'::' Lenglh' Color J",.}W-L Hullldentillcation #......, . -/11."'(;1.1 Hull type / nr.oC'~Cl\/t: ,("\U['l...~It.. Hull malorial: 0 Wood Fiberglass 0 Melal 0 Olher 1. Engine Make n, iC.l<<' "!jl,Gas 0 Dlosel Serial # ':(', ':'MiIY Q 1 1QQR Engine Hours -f{I'Oulboard o Inboard Outdrive serial II # or Cylinders . H.P, or Cublcll;lChos ~ 2. Engine Make rO'f3as 'Oofeser-- Serial # Engine Hours 0 Outboard ~. i,o Inboard Outdrlve serial # " 01 Cylinders H.P. or Cubi9,jJ)ches Name of waler~raft 'r V\ iV1'\~ . Port of Call .Jr, Regislrailon # ,', . Slale reglslered R.~gist!i'lion Year clNk~ Explralion Dale J11L CertificateofliUe -b7il'~ If C:,why? .1IJ~L (-!:!"ct\~Lr Name, address as appears on litle or Registration -I Where stored when not in use or sJore oll,scason? ..4". 1:1.11 -" i" II" 11-1: /.-' };J.Et!.LL (fJi'//~'1:7 Year of Trailer q'1 Make h;t" ~ Mo 01 ' / Number 01 axles _ Lenglh -1.E._ FormNn.22:!119!ti7IP^ J .1t\r1111;::)OUr1lJ l.lf\I..Jt';) IV. Typo of bfn~lra syslom 4A Licenso Plalo n J~fl Slalo Is.ued It ~ ': VIN # _~! \L.. Typo of Winch. f-' , Trailor Own r namo address, phono n rL.d1J1J1 J L% ."'''1 L"-. .... . . . oalo of purchn!iu ~~:j j _ TfDllor oqulppOdWlifi antl-ilia'l uovTco?-rfY05 qt No--.'U YOSt wasil ongoooa.. 01 limo ofloss7 dY.i9 0 N?!~ Typo .t.t Key. usod wilh AnlHholl dovlco? C1 Vos C1 No How many '01S 01 koys7 I Who hos Ihom now 7 jJ Arc all keys nccounlod lo~ l'o"St1 No Insuran~'co. n~dli 1"1 fot UOI or . Voor of vol1lclo u~oB to tow walorcralll,nilo, 111/liJ! ..: Mako . ; JI LiconSOl'lalo #"}J II Stillo Issuod _i'l " Ownor namo, addross, . ~no. 1# (..) Insurance company. Doont for low vehicle :J.fflJn.!{.J Do you or nnyona elsc havo nddilionnllnsumnco 01 lhowalorcrarl,.or Iraifo?fpfVD'S1ff'JOlf yos, who1~~iH...Jti2: Insuranco Co. & Aaonr, namo 13. 1..E.c..".I,.... Policy # . "'Y' FlOSll1o walo,c,all, onaino, lrailor ovo, boon damaoe iilflO pnsllhroo yoors? 0 Vos 'tp No "J!DO"'C~ 0 Iypo 01 dam ago, loco lion, nnd amounl 01 dam ago , I/!- "'f)- II. rm'^ I Dalo(s) of 109S lv, or rcp.urs camp 010 ? ~ Yos a No Cl Pnrtlal By Whom? f J ~nmoA?~~OSS' phone II of insurance company who paid dam ago opalrs, avo yo~ -mndo any othor lnsufilnco C alms In I 0 asl yonrs Ine u mg omoQwnors, illercra I, II yes, describe ench claim (typo 01 c1nlm, dala, location, & nmount paid) I'/{) Hns waterCfillt ovor boon pnrtlLllly or complotoJ{submergod?~lI~hon Does lhis wnlorcmlt have ::In. nsslgnod USCG Documentation II? C1 Yos't(l No II yos, It Do you rcnUlcLlse a dock or/.'J~ I~' ? 0 Ycs~m-No Name, Addross of marina....bl:, i.t:J. Namo 01 nelghbo,lng dock slip alders r-} 1-1 WATERCRAFT EQUIPMENT (CHECK BOX IF WATERCRAFT HAD ANV OF THE FOLLOWING) a Mobilo Phono ~I .A 0 Marino Radio Il a DePlhNJ' J indor Phono It tJ [I Typo ~ '-7/' Call Sign M.1ko _ _ Modol Phono Co. Namo Sorial~". Serial II o AM/FM 0 CD Playo, 0 Cassono In or C1 GPS ~ (J 0 Loron N C1 R'd~' ~ Mako ft Modal Mako ~ Modol Make Sorlol/C' - - - - Sorinl II . - - Setinl II - - o Auxiliary Power ~ 0 Air Conditioner 0 Co Q o Dinghy Regislralion It _ . D-- 0 Genorotor 0 Blower List other equipment Model afor V, WATERCRAFT/ENGINE EQUIPMENT, Poor Fair Good Excellent Re!:I!..!!!1 lint Condlllon Prior to Loss Poor Fair Good Excellent 1 Rebuilt Wlllort,,:!: H~:!! 'Palnt/gel CO~j Walorcrall Salls Watorcra II FrUIn ~ .Name, address 01 routine servico marina IN\ Who performs routine maintenance service? -6..:\U VV\ Was wntercralt winterized at time of IO~Tt tristYes a No Who performs safety inspection? ~ Date lasllnspected ~ VI. Dolo purch.sedlleased _/kL1z4 q I -fl New ;r) Used Purchase/Leaso Price $ . ?,J c?Jo , ~ Nar1J.e, address, p~pne}l, 01 gealer or :l'\djVid~ql boat purp.ha~~d frafT) I( " ;\ :J lit ~/JJ:UJ t1/~,r,.<-,Jn'" fl4~r;,(,5~k Trade-in Allowance At lime of purch~was walercrnlt damaged7 0 Yes m,No , If yes, explain Is watercraU leased or rented? 0 Yes erNo If yes, name, address afleasing/renlal company Whalls loose turn.ln dolo . Was there a Marine Surveyors Report completed at lima of sale/financing? 0 Yes) No - If yes, name, address, phone # of surv8'yor company Engine 1 DrIve 1 Englno 2 DrIve 2 Dalo lasl serviced N-tIM ~oy.' _ f!s watercraft paid .fPfl,'L 0 Cash 0 Check .~ Other IIlinanced, nan;~H~ddress of finance company_ J~J \t"\. 'I.J. \ Account # J)Jl Balance due 0.0 ~() , Lq\ln/loa~o le':ns (n monlhs) -.JJJl/_ onlhly Payment $ :,I7.'l ~ Dole of lasllo.nlioase paymenl (IIn~r. h I). _)s accounl post duo? 0 Ves 9:NO How long? __ H<]','c ~'C:J offorod I i alorcrnll for solo 0:" trado? 0 Yos-p.No Whon? How much? Any offers? a Yes 0 No Who? How many sots of ys? - =r-- Arc keys iQ your ppssossion? ~ Yes 0 No II nOI, who has Ihom7, "'~ I 0 'lki:[Q"'--./JJlVl"'- PA STAT. T1 81, ~4117 "ANV PERSON WHO KNOWING LV AND WITH INTENTTO DEFRAUDANV INSURANCE COMPANV OR OTHER PER. SON FILES AN APPLICATION FOR INSURANCE OR STATEMENT OF CLAIM CONTAINING ANV MATERIALLV FALSE INFORMATION OR CONCEALS FOR THE PURPOSE OF MISLEADING, INFORMATION CONCERNING ANV FACT MATERIAL THERETO COMMITS A FRAUDULENT INSURANCE ACT, WHICH IS A CRIME ANO SUBJECTS SUCH PERSON TO CRIMINAL AND CIVIL PENALTIES:' This att~a;rll-lriu~t;p.. Igned. ta,lzed, and ,oturnod by mall to 0 Progrosslvo Insuranco claims office. Signed ." i " Sigrlnturo Ind,vklu3lComplollllQAtr'<!3Vil, . WitnOSSAdd'ess..?~II.Ph? /70;) W'llll/55Sogrl3l1Jru SUt)C:ited and silo, ~o, Ihls. '19 day of ~r, \ , Vear 3L... I1~ . . tll'l"Setll ~ Personally Known Licensed~ot ry <St2Hr'lG2f".!Q9.Y1!!..llim!!~..e i ldenlltlcatlon Produced SrTlllhlitJld Twp,. HUllllngdon oulll Mr{7tlmtttf!l:o.i01"r"&!)lrerile . M~ll1oer. P~nnsyl\'anlJASSOclatlonclljC!Jries Form No, 2221 (0197) PA Witness IOGrllol,cmoOll {5Gall May 4,1998 PROllREJJIVE .' I ! '.-,,'! II'! I ' ',j,dl :,','. _,"'1,"".11"1'/.1""',' '''' ".... ""-....".,,,,..,.,,, I.j..,' \ .f,',' ,.11'''",'1'''' Richard A. Blumcnstcin 2510 South Market Strect Mechaniesburg, PA 17055 Our Insured: Our Case: Date of Incident: Richard I3lumenstein 981323030-SIU Mar 12,1998 Please be advised you arc hcrcby rcquircd to appcar for an cxamination under oath with respcetto your claim, pursuant to the terms and conditions ofthc policy ofinsurancc The examination will bc conducted by Spcciallnvcstigator Petcr G Ganley, and/or by anothcr spccial investigator or membcr of our lcgal staO'. Your cxamination under oath has bccn schcduled at the Progrcssivc Carlislc claims ofiicc, 40 I East Luthcr St, Suitc 102, Carlislc, I' ^ 17013 . Thc examinationundcr oath will continuc until complction on that datc or any subsequcnt date or datcs. You arc rcquired to produce at your examination undcr oath all original documcnts in support of your claim including but not limited to: A All policcs of insurancc covcring or purporting to cover thc insured vchicle involved in the incident. B, All policc rcports and supplemcntal policc reports conccrning the incidcnt in qucstion. C. All statcmcnts from any witncsses rclating to the incident iii question. D. All correspondencc scnt to and rcccivcd from any agcnt, represcntativc, adjustcr, or claim supcrintcndent with respect to your claim. E. All personal notcs or diaries regarding any conversation or communication with any agcnt, rcprcscntativc, adjuster or claims superintcndent with rcspcct to your claim. F, Two forms of photographic idcntification along with proof of your social security number. (social security card). G. All other documents, notes or memoranda that relate to the incident in qucstion, Page 2 981323030-SIU ., H, All registration documcnts issucd by thc slatc of Pcnnsylvania lor thc vchicle for which a claim of thcll was madc. I. All purchase documents for thc 1997 Lighting and the Trailcr. J, Any and all purchase documents for the motor auached to the 1997 Lightning at the time of the reported thell. Also include any repair documents for the motor in question. Upon receipt of this leller, we ask that you cOllllllunicate direclly with Investigatorl'eter G. Ganley at the Progressive West Chester Claims Office (address noted on letterhead). advising us of a date and time which is convenient to you. The demands set forth for the examination under oath and the production of records arc made pursuant to the terms and conditions of the policy of insurance. Any failure to comply will constitute a breach of policy, rendering any liability void. FurthemJOre, these demands arc made without prejudice to your rights or those of Progressive Insurance Company, and arc not to be taken as admission of coverage or denial ofliability on behalf of the insurer. Please be advised the handling of this file is being conducted under a reservation of rights. No action taken to date nor any action we take in the future, to investigate, explore settlement, or defend a lawsuit arising out of this claim should be deemed an admission of coverage undcr our insured's policy, 00586914-1 Progressive expressively reserves all rights of denial under the policy and in no way waives any of our rights. The investigation of this matter has been and is being conducted with full and complete reservation of all rights afforded to us under the policy of insurance issued to Richard A. Blumenstein, Progressive reserves the right to amend this correspondence so as to include any other policy terms and/or conditions which may be relied upon in a coverage decision inasmuch as Progressive has not been afforded the opportunity to fully investigate this loss, Pennsylvania State Law (Title 75 Pa. C.SA Section 1822) requires that Progressive Insurance Companies advise you that '}Jny person who knowingly and with in/ell//o illjure rr defraud allY illsurer files all applica/ion or claim cOlltaJlling any false, Jncol1lplete or mJsleading illformatioll shall, UpOIl cOllvictioll, be subject to imprisollmellt for up to sevell years and paymellt of afilla of lip to $15.000. /I ~. .ii g ~ ~ ij':';- a !!!..... g. l}! ~ ~I ~ :l"tJlU :>",U' a;:o~ ~.~ ,~g~ e..n D =u ~_~ ~~-- ,. ~ - a ].~] '. ~~i5~ ~g ~;3 ::l~ ,- ro-'g. ~ g ~ a g ~ ; IV IV g ~; CT III :;I tJ" n tq 'OJ 0. 0 05 9.6' ~;;~ g'3 a-.!:l a E-.g: ~~ iI=g: ~3 ~a. .~ ~:g ~~ !1lffia. g:~ III 0 !'" 5~ iI~ ~~~;~ ;- g :.g !lI~. g.u:s il!.a -o[ ~ 05 D ~ ~~ S:o g,E [ .- IV n _'-:: n r;I 5' ;;::r 3 61:::- If; a31U~(II::;0 ~ ;'l g .11 2 li: a u:.E fi = _ ~;; a P.. ~ Q.I !II a- : ffi ;g w 2. n' 0 8. 0 (II.. to ... :: a- .~ .. .~ s!! III :--' g g :f g ~ g g' ~ ~ PS Form 3800, April 1995 (Reverse) EXHIBIT 4 ~.... .:" .... '.:~: . ,.......,~~..: ~o . ,i1/ ,~.., . "'1 . ':\'l " "~." <0 <0 v. TN THE COURT OF COMMON pLEAS 01" CUMBERLAND COUNTY, PENNSYLVANIA NO, 96- 3'((.,7 CIVIL TERM RJCHARD A, BLUMENSTEIN, JR., Plaintiff PROGRESSIVE, Defendant JURY TRIAL DEMANDED COMPLAINT AND NOW, comes the Plaintiff, Richard A. Blumenstein, Jr., by his attorneys, Addams & Rundle, and makes the following complaint: 1. The Plaintiff is Richard A. Blumenstein, Jr., an adult individual currently residing in Huntingdon County, Pennsylvania. 2. The Defendant is Progressive, ,a corporation authorized to write insurance policies in the Commonwealth of Pennsylvania with an office and principal place of business at 401 East Louther Street, Carlisle, Cumberland County, Pennsylvania. 3, The Plaintiff was the owner of a 1997 Lightning MVT boat which, on or about March 12, 1998, was stolen from its place of storage in Upper Allen Township, Cumberland County, Pennsylvania. 4. At said time the boat was insured by Defendant under its Policy No. 00586914-1 issued to Plaintiff for 10s8 caused by theft. A copy of the declarations page is attached as Exhibit "A." The Defendant has the text of the entire policy, S. The Defendant provided insurance coverage in the amount o~ $32,000. The boat had an actual cash value at the time of the 1068 in excess of that amount. -a _aI- '_', 0/ '.. 06/26/98 10:15 FAX 7175581606 ~~--:-- ~005 PRO G RES S I V E OJ)Q4 1",lllullll.,..I.IIII.I..I.'III.IIII.IIII,I.,"11111111I111I RICHARD A BLUMENSTEIN JR ANGELINA 8LU~ENSTEIN e510 SOUTH MARKET STREET MECHAN!CSBURG PA 17055 BOAT POLICY OI'!CLARATION FOR NAMED INSURED RICHARD A BLUM~NSTEIN ~R ANGeLINA aLUM~NST!IN 2510 SOUTH MARKET STREET MECHANlCSBURG PA 170SS POLICY NUMBER: 00586914 - 1 POLICY PERIOD: 01/1006 TO 01/18199 Thi$ policy incolJts on IhO d.le ,nd. limo IhiJt the applicatIon tor inSU'iJ(lCt' IS executed and ahall expire at 12:01 a.m. on the 13$' davof the fJOliey ocrJod. The following eovc/ogc, C1nd limit, OD~ to f1oc;h de.scribed ...ehicle iJ$ sl'lOwn below, CoveU'ges are defined in the policy iJnd ore subject 10 the term, and conditions conl:linGd if' tho DOlley, including lIrT1endmtlnl& and Ifll"ldofll"emenls. NO chllngC$ will be eUcellv&, Drlor 10 the lime cnsngcs Oft' fllQU8Sled, I,ASON ron ISSUANCE, RENEWA" ,H# VR 95 97 MAKE MQDEL BULLE 9ASS LIGHT ....VT TOTAL HP 200 200 RATING SASe; 22500 32000 DRViI , 2 3 4 5 I.ISTEO DRIVERS RICHARD A BLUMENSTEIN ~R ANGELINA BLUMENSTEIN FT 20 lB SERIAL NUMSER SBQ20C49F495 LP~MVP 15H89? , 2 l I COVERAGes. LIMITS OF LIA61L1TY IE COVERAGE IS APPLlCA8LE ONLY IF A PREMIUM IS INOICATe;o. IDILV IN~URV LIABILITV ,25.000 EACH PERSON - $50,ClOO EACH ACCIDENT :DPERTY DAMAGE LIABILITV . $10.000 EACH ACCIDENT .0 PAY/WATERSKIER'S MED PAY $1,000 EACH PERSON IMPREHENSIVE $250 OEOUCTlILE ILLISION $2S0 OEOUCTI8LE :PLACEMENT COST PERSONAL E'FECTS 3000 LIMIT ($100 THEFT DEDUCTIBLE) IAOSIOE ASSlSTANCE VEH #1 $29 FULL TERM PREMIUM CHARGE VEH 62 VEH #3 VEH #4 TOTAL $45 $74 .".. '- $11 $17 $28 $101 $179 $280 $202 $378 $578 $53 $S9 INCL INCL .. rACHMENTS IDENTIFIED By ~OR.M NO. 56181(0994) 2584{ 1195) 3611( 1196) 3e4! OS94) S02BPA{ OS8S) 9814(12S6) PREMIUM 6Y VEHICLE $:396 $617 TOTAL POLICY PREMIUM MINIMUM EARNED PREMIUM 60'7{ '195) $1,013.00 $50.00 EXHIBIT "A" .~zw.~1gp.,~~~' m Nn 111:'1 (1019Gl I~~' I,"J.:n 0::: r-:npy ....'.ll""n.....'............rl .. ..,... Filed June 2, 1998 UNITED STATES COURT OF APPEALS FOR THE THIRD CIRCUIT No. 97-1190 RONALD APALUCCI, Appellant v. AGORA SYNDICATE, INC. Appeal from the United States District Court for the Eastern District of Pennsylvania D.C, No.: 96-cv-4552 Argued January 22, 1998 Before: SLOVITER, LEWIS, * and ROSENN, Circuit Judges. (Opinion Filed June 2, 1998) Joseph F, McGowan, Jr. (Argued) 1913 Greentree Road Cherry Hill, NJ 08003 Counsel for Appellant William M. Connor Michael 1. Smith (Argued) Billet & Connor 2000 Market Street Suite 2803 Philadelphia, PA 19103 Counsel for Appellee * Although Judge Lewis took part in consideration of this case, he has been unable to clear this written opinion because of illness. 6. The loss was promptly reported to the Defendant and to 7, As yet, the Defendant has not paid the loss as required :/ , .Ii " I., " the police, under its policy, 8, The Defendant has unreasonably refused to pay the loss and has not given Plaintiff a reasonable explanation for not paying the loss which indicates bad faith and subjects the Defendant to liability for punitive damages. WHEREFORE, the Plaintiff demands judgment against the Defendant in the amount of $32,000 plus punitive damages, plus interest and costs of suit, ADDAMS & RUNDLE By: -/'~--//// Wi 11 iatIT ~crcfa;~-.- Supreme Court 1.0, No. 06265 28 South Pitt Street P,O, Box 208 Carlisle, PA 17013 (717) 249-8300 Attorneys for Plaintiff MOUNTAIN LAUREL ASSURANCE OUNN RT INS INCIBC 200 WEST MAIN STREET MECHANICSBURG PA 170S5 03g04 1",11'",111""1,1,.1.".1.1,.1,1,.1",.1,1.",1111.,.,,.II' RICHARD A BLUMENSTEIN JR ANGELINA BLUMENSTEIN 2510 SOUTH MARKET STREET MECHANICSBURG PA 17055 REASON FOR ISSUANCE: RENEWAL VR 95 97 FT MAKE 20 BULLE lB LIGHT MODEL BASS MVT SERIAL NUMBER BBQ20C49F495 LPJMVP15H697 1 2 3 I 4 I COVERAGES - LIMITS OF LIABILITY I THE COVERAGE IS APPLICABLE ONLV IF A PREMIUM 15 INDICATED. , BDDILV INJURY LrABILITV $25,000 EACH PERSON - $50,000 EACH ACCIDENT PROPERTY DAMAGE LIABILITV - $10,000 EACH ACCIDENT MED PAV/WATERSKIER'S MED PAV $1,000 EACH PERSON COMPREHENSIVE $250 DEDUCTIBLE COLLISION $250 DEDUCTIBLE REPLACEMENT COST PERSONAL EFFECTS $3000 LIMIT ($100 THEFT DEDUCTIBLE) ROADSIDE ASSISTANCE " TOTAL HP 200 200 --. PREMIUM BY VEHICLE ~1TACHMENTS IDENTIFIED BY FORM NO. 2561BT(0994) 2584(1195) 3611(1196) 6017(1195) 6364(0994) 9028PA(0989) 9864(1296) EXHIBIT "A" INSURED'S COPY .... PROGREJJIVE" POLICV SERVICE 1-800-888-77B4 BILLING INQUIRV 1-800-999-8781 CLAIMS SERVICE 1-800-214-4499 24 HOUR 24 HOUR 24 HOUR BOAT POLICY DECLARATION FOR NAMED INSURE!) RICHARD A BLUMENSTEIN JR ANGELINA BLUMENSTEIN 2510 SOUTH MARKET STREET MECHANICSBURG PA 17055 POLICY NUMBER: 00586914 - 1 POLICY PERIOD: 0t/18/98 TO 01/18/99 This policy incepts on tho dolo nnd limo thaI tho application for insuranco Is O)(oculod and shall o)(piro 8112:01 a.m. on tho fasl day of tho policy period. Tho 'allowing coverages nnd limits apply 10 cach described vehiclo as shown below. Coveragos orc defined in tho policy and aro subjCCllo Iho totms nod conditions contalnod In tho policy, including amendmenls and endorsements. No chlJngos will bo ofloctivo prior to tho lime changos me requosted, RATING BASE DRV # 22500 1 32000 2 3 4 5 LISTED DRIVERS RICHARD A BLUMENSTEIN JR ANGELINA BLUMENSTEIN VEH #1 $29 FULL TERM PREMIUM CHARGE VEH #2 VEH #3 VEH #4 TOTAL $45 $74 $11 $101 $202 $53 INCL $17 $119 $376 INCL $396 $617 TOTAL POLICY PREMIUM MINIMUM EARNED PREMIUM $1,013.00 $50.00 ~A ~~~, IOfiZe prosent V _ PINE0212972205L 11 135 .~... "~., $28 $280 $578 $53 Jr,\li-<\'?/,,:; . " i " . ,,,,~,'/ ::- I~'~" ',," ""o.t < ~ v ",.,{;",/.', "Fre.~",~,:,:~-"".,,~,,;.;,,:/' ..' ,'.,;., ,,'d_ '>.",..' ",,"'i .: , ''" -', ,'., " ' , ADDAMS & RUNDLE ,..}i:\~:::':;~~i~3,":;~.;:~:;:=c:.:.~~~~;::::..~1!Cl~N:Y~~ ~AW .C': l;\,,7;~:..:':;:.--.-.' ''-'" ',' .H'. ----- ,., -28 SOUTH PITT STREET '"' t'." 'Ii.~ :'i:",,' ,,'" ,.".....'" . ( : -,. . . . ,.. '. ", . 1:}'/(i'//;i',':, .';',: . CARLISLE PENNSVLVANIA 17013 ~lf!\i,:,:,-~.i":;;;~r:(<;':,),. ...., ' :;,;..,J.'.'....,::,: .;,: . TELEPHONE (717) 240,8300 ".~r~',b;~;W~.:h';;J>~ ::,~, :,'\::r-,1 .~_ 'r ......._,- v, IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO, 98-3469 CIVIL TERM RICHARD A. BLUMENSTEIN, JR., Plaintiff PROGRESSIVE, Defendant JURY TRIAL DEMANDED PLAINTIFF'S ANSWER TO DEFENDANT'S PRELIMINARY OBJECTION AND NOW, comes the Plaintiff, Richard A. Blumenstein, Jr" by his attorneys, Addams & Rundle, and makes the following answer to the defendant's preliminary objection in a nature of a demurrer: 1-6, Admitted, 7, Denied, The complaint was filed June 22, 1998. The letter from the company dated May 4, 1998 did not set a date for the examination under oath and requested that Mr. Blumenstein contact the company in this regard, On May 20, 1998 counsel for the plaintiff contacted the company, advised that the plaintiff was represented, and scheduled the examination for June 4, 1998, On June 1, 1998 counsel faxed and mailed the letter attached as Exhibit "A" requesting that the examination be rescheduled, The defendant did not respond to that letter and apparently took no further action on the plaintiff's claim, After waiting three weeks, plaintiff filed this suit. 8. Denied. By failing to respond, the defendant waived its right to an examination under oath, WHEREFORE, the plaintiff requests the defendant's preliminary objection be dismissed, ADDAMS & RUNDLE By: ~4K William A, Addams Supreme Court I,D, No. 06265 28 South Pitt Street P.O. Box 208 Carlisle, PA 17013 (717) 249-8300 Attorneys for Plaintiff .... ,\ 1l1l,\I\1S IX IUJNIlLE ^TTOflNEY5 AT l.AW 1',0, BOX 20B 28 SOUTH PITT STIlU'T CAflLlSLE, PENNSYLVANIA 17013-0200 WILLIAM A. ADDAMS MICIIA(l n. nUtJDLE TEl(PIIONE 17171249.8300 r:t,X Ill?) 249.6154 ,June 1, 1998 FAX: (610) 918-7480 Peter G. Ganley Special Investigator Progressive Companies 770 East Market Street, Suite 265 West Chester, PA 19382 RE: Claim NO, 981323030 - SIU Insured: Richard Blumenstein D/L: 3/12/98 Our File No, 6778 Dear Mr. Ganley: Unfortunately, we must postpone Mr. Blumenstein's statement scheduled for June 4, 1998 in Carlisle. advised me that he has to prepare for a boat show following day, recorded He just beginning the Please give me a call at your earliest convenience so we can reschedule this matter. I am also looking forward to receiving the copies of the recorded statements and claim forms requested in my letter of May 20, 1998. Thank you for your cooperation, Very truly yours, ADDAMS & RUNDLE William A. Addams WAA/mp cc: Richard Blumenstein Exhibit "A" Michael J. MeCarrie. Esq. Suite 300 1700 Sansom Street Philadelphia. P A 19103 Allorney for Defendant :re \. .. ~)/I'i.J9)' C~f~<--<V m\(l'{ (,c, . >,3 .f'. IN TIlE COURT OF COMMON PLEAS OF CUl'dllERI.AND COUNTY, PA CIVIL DIVISION I, II I, 'I I , I RICIIARD A. BLUMENSTEIN, JR. Plaintiff NO. 98-3469 CIVIL TERM 1'. PROGRESSIVE INSURANCE CO. Dcfcndant ENTRY OF APPEARANCE Plcasc cntcr my appcarancc on bchalfofdclcndant Progrcssivc Insurancc Company, with rcspect to thc Answer and New Matter in the above captioned matter. TIMBY AND DILLON, P.c. I rrr1. // . By:/J.12 -" ////-0,,<1' Micha~ 1. McCarrie, Esquire Attorney for Defcndant, Progressive Insurance Co. 1.0. No. 57671 330 South State Strcct Post Office Box 99 Newtown, PA 18940 (215) 968-6886 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA, CIVIL DIVISION RICHARD A. BLUMENSTEIN, JR. Plaintiff ,'~ VS. NO. 98-3469 CIVIL TERM . (! PROGRESSIVE INSURANCE CO., Defendant ANSWER AND NEW MATTER OF DEFENDANT, PROGRESSIVE INSUFL~NCE COMPANY, TO PLAINTIFF'S COMPLAINT ! , II i 1. - 4. Admitted. 5. Admitted in Part Denied in Part. It is admitted that the defendant provided insurance coverage as outlined in the policy which is a document that speaks for itself and is subject to all its terms and conditions. It is denied that the boat had an actual cash value at the time of the loss in excess of $32,000.00 for reasons more fully articulated in Defendant's New Matter. 6 , Denied. It is denied that the loss ~7as promptly reported to the defendant and to the police. 7. Admi tted in Part, Denied in Part. It is admitted that defendant has yet to pay this claim for reasons more l':ully articulated in Defendant's New Matter. It is den!.ed that defendant he.d an obligation to pay the claim until their investigation was complete. 8. Denied. It is denied that the defendant has unreasonably refused to pay the loss. It is further denied that the defendant has failed to give the plaintiff a reasonable explanation for not paying the loss as articulated ... in Defendant's New Matter. Defendant has admitted coverage in this case and is willing to pay the loss pursuant to the terms of its Policy No. 00586914-1 for loss caused by theft. It is denied that defendant acted in bad faith since their actions in investigating the claim was in compliance with the policy provisions and statutes governing insurance claim investigation. WHEREFORE, defendant, Progressive Insurance Company, demands judgment against plaintiff, including the imposition of costs, and such other and further relief as the Court may deem just and appropriate. NEW MATTER 9. The alleged damages of plaintiff may have been caused solely, or in part, by the negligence and carelessness of others for whom the defendant is not responsible. 10. The alleged damages of plaintiff were not proximately caused by any act or failure to act of defendant. 11. The plaintiff's Complaint is barred by the statute of Limitations. 12. The plaintiff's Complaint fails to state a claim for which relief can be granted. 13. Plaintiff, in this action on a watercraft insurance policy have the burden of proving that it suffered a loss from a peril covered by the contract of insurance and the amount of said loss calculated, pursuant to the terms, conditions and limits of liability and other terms and conditions of the 2 oj contract of insurance involved in this case. 14. On the date of the theft, the boat was insured by the defendant under its Policy No. 005869914-1. A copy of the entire policy is attached as Exhibit "A." 15. The LIMIT OF LIABILITY provision of Policy No. 005869914-1 provides: Our Limit of Liability for loss will be the lesser of the follmdng amounts: 1. The actual cash value of your covered property at the time of loss; or 2. The amount necessary to repair or replace the property at the time of loss with deduction for appreciation as it applies; 16. Policy No. 005869914-1, Definitions Section, Clause 15 defines "Actual Cash Value" as "the cash amount that would be required to replace property in the same condition in which it was at the time of the loss." 17. In compliance with the policy, the defendant provided to the plaintiff a valuation of the plaintiff's watercraft at the time of the loss. A copy of the Valuation is attached as Exhibit "B." 18. The Valuation reports the value of the plaintiff's watercraft at the time of the theft ~o be $10,700.00. This amount does not include tax, title, license or deductibles. 19. The extent of the defendant's liability, as measured pursuant to policy number 00586914-1, is $10,700.00. 20. Plaintiff has demanded $32,000.00. 3 ~ 21. The contract of insurance upon which plaintiff's following: claim has been made contains, among other provisions the APPRAISAL: If you and we fail to agree on the amount of loss, either may demand an appraisal of the loss. In this event, each party will select a competent and disinterested appraiser. If the appraisers agree on the amount of the loss, they shall submit a written report to us, and subj ect to the provision contained within the Limit of Liability in this Section A, this shall be deemed to be the amount of the loss. 22. The defendant has complied with the Appraisal Provision of the insurance contract and obtained a valuation of the loss. 23. The plaintiff has failed to comply with the Appraisal Provision of the insurance contract and has not retained an appraiser to value the loss. WHEREFORE, defendant, Progressive Insurance Company demands conformity with the policy and respectfully requests -Chis Court to appoint em Appraiser to determine the value of the loss. /JJhL,A7/lJ;l0!,,,;. Micha~$IJ: McCarrie, Esquire Russel'l P. Sacco, Esquire Tiwby and Dillon, P.C. 330 South State street Newtown, PA 18940 (215) 968-6886 Attorney for Defendant ~ 4 CERTIFICATE OF SERVICE I, Michael J. McCarrie, Esquire, attorney for defendant, Progressive Insurance Company, does hereby certify that a true and correct copy of the Defendant's Answer and New Matter were served by first-class mail, postage prepaid this ,)'J~ day of N..V!m>>e"- , 1998, as fellows: william A. Addams, Esquire Addams and Rundle 28 South Pitt Street P.O. Box 208 Carlisle, PA 17013 Attorney for Plaintiff ]71.l.duu-P -+. )11<: {c,.-<..w --. If,: Michael J. McCarrie, Esquire Timby and Dillon, P.C. 330 South state street Newtown, PA 18940 (215) 968-6886 6 " '.. MOUNTAIN LAUREL ASSURANCE COMPANY 1635 Market Street, Philadelphia. Pennsylvania 19103 BOAT POLICY CONTRACT ANY PERSON WHO, WITH INTENT TO DEFRAUD OR KNOWING THAT HE/SHE IS FACILITATING FRAUD AGAINST AN INSURER, SUBMITS AN APPLICATION OR FILES A CLAIM CONTAINING A FALSE OR FRAUDULENT STATEMENT IS GUILTY OF INSURANCE FRAUD . INDEX OF POLICY PROVISIONS PAGE POLICY AGREEMENT ....,........,..................................,.........,.....................,....,.....................,....,..,.......,......., 2 DEFINITIONS ...........,....,...............................,.......................,.....................,....,.........,....,.....................,........ 2 YOUR DUTIES IN CASE OF ACCIDENT OR LOSS ....,.......,......,..........,.............,.......,.................,..............,.........................,....,.......... 3 OTHER DUTIES ,....,.............................,....,....,..........,.................................,............,....,................................. 3 SECTION A - PHYSICAL DAMAGE COVERAGE ......,.......................,............,...............,......................................,......,....,.. 4. Insuring Agreement ................,.................................,...............,...............,.....,.... .....,................................... 4 Additional Definitions .............,.............. ....................,................. ..,...... ...........,........................... .......... ........ 4 Additional Coverages ..........,............. ......,.... .............. ,................................,.... ,....,.....,...., ............................ 4 Exclusions ...,..,..,..........................,.................................. ,........................,.....,.....,....................................... 5 Limit of Liability '..,............ ....................... ................................. ..,...... ......... ,...........,.............,....... ..,....... ,...... 6 --:::payment of Loss .......................................................... ....... .......... ..,......... ,..,.. ,....,....... .......... ..,................... 6 No Benefit to Bailee ................................................................,................,.....,......,..,..........................,........ 6 Our Option to Repair ...,........................,..................................................................,.................................... 6 Appraisal ......,...... ....,........................................ ........,.. .................................,.......,......... ....... ,................ ....,. 7 Other Insurance ,.............. ....,.............. ..... .......................,.......... ............................,.............................,. ......' 7 ECTION B . oflATERCRAFT LIABILITY COVERAGE .................................,.................,...............,...................................., 7 Insuring Agreement ...........,......................................,.,..,.............,...........,.....,.....,.............................,.......... 7 Additional Definition .....................,.................,.....................,...................."....,............................................, 7 Additional Payments ...............................,...........................................................,......................................... 7 Exclusions ................. ................. ..,.....................,.............................. ....... ,.. ,..., ................. ........... ..............., 7 Limit of Liability ,..................,.......... ............, ........ ................................. ...... '............ ......................... ...., ........ 9 Other Insurance ,...... ,....... .,..... ................ ,.................. ..,... .............. ...........,.....,..........., ,.............. ,................, 9 SECTION C - MEDICAL PAYMENTS ........,.......................,.......,..........,.............,...........,..............................,....,..............., 10 Insuring Agreement ,......... ....,......................................... ................., ....,.........,. ,.......... '.......,........ ..,........... 10 Additional Definitions ................ ...... ........................ ........ ......,... ..,.... ,..................... ,....... ........,...., ..,......,..... 1 0 Exclusions ......... ..... ..'........... ......... ....,..... .......... ................ ......,... ......... ...........,. ........ ............ ,.................... 1 0 . Limit of Liability ..................................,...............,..........,....................................,.........,...............,.............. 11 Other Insurance ..,................. .............. ..... ...,...,. .......... ........ ........,.. ..,..............., ,...... .............,...... ..,........,... 11 SECTION D - . GENERAL PROVISIONS ...,......,........,......,....................,..,..........:.....................,....,..............,............,......... 11 Policy Period ........,...,............ ......... ......, ............. .......... ...... ...... ..... ............................... ............... ...,........... 11 Policy Territory ..... ............ ............. ...........................,..... ...........,.......... ..... ......,. ...., ............... '......... ........... 1 1 Changes ..,.............................. ...................................,........................ ......,. ,....,....... ..., ,........... ................... 12 Legal Action Against Us ,...................,......................,.......................,....,........."..................................,...... 12 Transfer of Your Interest in This Policy ,.................,..................,..................."..........,..................,.............,................................... 12 Our Right to Recover Payment .......................,..........................,..,...........,........,......,..,........................,..,.. 12 Two or More Policies ,.....................................,....................,............,...............,...............,...,......,.........,.... 12 Renewal Provisions ................................,.......... ........, ,..................... ,........,..............,.... ....,........,....... ........ 12 Cancellation/Non-Renewal Provisions ..,..,..,.. ..,.. ............. ......... ..,.. '..... ........... ,..,. ...........,.. .......... ....,. ............,.............. ,.................... 12 Fraud and Misrepresentation ......... ................... .......... .............."... ....,......,......,..........,................ ......,..,..... 13 Bancruptcy .......................................... ..... .............................,........... ..,............ ............. .............. ...,..,..,..... 13 Terms of Policy Conform to Statutes .. ........ .............,....................................., .......,................................ ....,............. ....,................. 14 Form No, L1162 (12/94) page 1 of 13 PINE0921 952B05L 11 62C94 AGREEMENT If you pay your premium, we agree to insure based upon the agreements and representations contained in your application for insurance with us and subject to all terms of this policy for the coverage and up to the Limits of Liability as shown in the Declaration Page of this policy. The Declaration Page, any endorsements, and the application are part of this policy contract. PLEASE READ YOUR POLICY CAREFULLY. Provisions of this contract and its endorsements restrict coverage. Be certain you understand all 01 the coverage terms, the exclusions and your rights and duties. DEFINITIONS 1, "We," "Us" and "Our" mean the Company providing the insurance as shown on the Declaration Page. 2. "You" and "Your" mean the person shown as the named insured on the Declaration Page and that person's spouse if living in the same household, 3. "Bodily Injury" means physical harm (other than any communicable disease, including but not limited to Herpes, Acquired Immune Deficiency Syndrome, AIDS Related Complex (ARC) or any venereal disease) to or death of any person, and psychiatric injury or psychological injury. 4. "Property Damage" means damage to or destruction of tangible property, including loss of its use. 5. "Relative" means a person living in the same household and related to you by blood, marriage or adoption, including a ward or foster child. 6, "Occupying" means in, on, getting into or getting out of. 7. "Business" means a trade, profession or occupation, whether full or part-time and whether permanent or temporary, whether for profit or not for profit. 8. "Watercraft" means: a. a boat 32 feet or less in overall length; b. the attached motor or motors; and c. any other watercraft listed on the Declaration Page. 9. "Your covered watercraft" means: a. the watercraft described on the Declaration Page, including its permanent equipment; or b. any watercraft of which you aquire ownership during the policy period, provided that it replaces the watercraft described on the Declaration Page and you ask us to insure it within thirty (30) days after you become the owner. If you wait longer than thirty (30) days to ask us, you will not be covered until 12:01 a,m. on the day following the postmark on your notice to us. You must pay any additional premium required. This coverage is limited to 530,000. The insurance afforded by this policy on the original watercraft ends when you acquire possession of the replacement; or c. any watercraft you do not own while used as a temporary substitute for any other watercraft described in this definition which is out of normal use because of its breakdown. However. coverage under Section A - Physical Damage does not apply to a temporary substitute watercraft, For purposes of this policy, a watercraft shall be deemed to be owned by you if leased: a. under a written agreement to you; and b. the lease is for at least six (6) continuous months. Form No. L1162 (12194) page 2 of 13 PINE0921 952B05L 11 62C94 10. "Accident" means an un ected and unintended event that cau: bodily Injury or property damage and arises out ot the ownerShip, maintenance or use ot a watercraft, 11, "Permanent equipment" means equipment installed by a dealer er manufacturer in your covered watercraft. Permanent equipment includes ship.te,shore radios, depth finders, loran systems, GPS systems, fish finders, radar and sonar systems, and fishing motors with less than 20 horsepower. We consider safely and life.saving equipment permanent equipment even if such equipment Is portable. 12, "Personal effects" includes equipment usually required on board for operation or upkeep of a watercraft including anchors, oars, tarpaulins, lights, tire extinguishers, extra fuel tanks, bilge pumps, portable cooksteves, and deck chairs while such equipment is attached to or contained in or on your covered watercraft. However, personal effects shall not include portable electronic or photographic equipment, fishing gear, tools, guns or other hunting equipment, binoculars, water skis, parasails or other water sports equipment or other property not specifically for marine use. 13. "Motor" includes remote controls, electric harnesses, fuel containers or batteries when supplied by a manufacturer as a part of the motor. 14, "Trailer" means a towable trailer designed specifically for the transportation of a watercraft. 15, "Actual Cash Value" means the cash amount that would be required to replace property in the same condition in which it was at the time of the loss. YOUR DUTIES IN CASE OF ACCIDENT OR LOSS In the event of an accident or loss, you or a covered person must report it to us immediately by contacting our nearest claims office. The report must give time, place and circumstances of the accident or loss, including the names and addresses of the injured persons and witnesses. OTHER DUTIES A person claiming any coverage under this policy must: 1, cooperate with us and assist us in any matter concerning a claim or lawsuit; 2. send us promptly any legal papers received relating to any claim or lawsuit; 3. submit to physical examinations at our expense by doctors we select as often as we may reasonably require; 4. authorize us to obtain medical and other records; 5. provide any written proof of loss that we may reasonably require; 6. allow us to take signed or recorded statements, including statements under oath, and answer all reasonable queslions we may ask when and as often as we may reasonably require; 7. attend hearings and trials as required; 8. provide us with written notice of any legal action such person has undertaken in regard to the accident for which coverage is sought; and S, refuse to, except at your own or a covered person's own expense, assume any obligation or incur any expense other than that for medical and surgical care imperative at the time of the accident. If Claiming coverage under Section A of this policy, you must, in addition; 1. notify the police and/or Coast Guard immediately in the event of theft, vandalism or sinking of your covered watercraft; 2, take reasonable steps after a loss to protect the property from further damage, make reasonable and necessary repairs required to protect the property, and keep accurate record of repair expenditures, If you fail to do so, any further damages shall not be covered under this policy; Form No, L1162 (12194) page 3 of 13 PINE0921952B05L1162C94 3, prepare an inventory of d:!m :l property showing in detail the quantity,'" scription, actual cash value and amount of loss. Allach 10 the inventory all bills, receipts and relatbu documents that substantiate the figures in the inventory; 4. exhibit the damaged property as often as we reasonably require; 5. submit to us, within 60 days of the loss, unless such time is extended by this company in writing, your signed sworn statement of loss which sets forth, to the best of your knowledge and belief; a. the time and cause of loss; b, your interest and that of all others in the property involved and all encumbrances on the property; c. other insurance which may cover the loss; d, changes in title of the property during the term of the pOlicy; e, detailed estimates for repair of the damage; and f. the inventory of damaged or stolen property. SECTION A . PHYSICAL DAMAGE COVERAGE If you pay us a premium for Physical Damage Coverage, we will pay for loss to your covered property, less any applicable deductible shown on the Declaration Page, ADDITIONAL DEFINITIONS USED IN THIS SECTION ONLY 1. "Your covered property" means; a. your covered watercraft, but not a temporary substitute watercraft; b. the trailer(s) described on the Declaration Page; 2. "Loss" means sudden, direct and accidental loss of or damage to your covered property. Loss does not mean damage to your covered property caused by continued use of your covered property after a loss. a. Collision means colliding with another object. Loss caused by missiles, foreign objects drawn into the boat motor's cooling system, fallfng objects, fire, flood, malicious mischief, vandalism, riot, civil commotion, hitting"" a bird or animal, or breakage of glass is not a loss caused by collision, If a collision causes glass to break, it will be treated as loss caused by collision. b. Comprehensive means loss caused by other than collision, c. Theft means loss caused by theft, larceny, robbery, or pilferage. d. Actual Cash Value means the amount it would cost' to replace the stolen or damaged property with property of like kind and quality, In the event replacement property of like kind and quality is unavailable, allowances can be made for the difference in value between the replacement and damaged property. ADDITIONAL COVERAGES 1. Reasonable Repairs. We will pay the reasonable cost incurred by you for necessary repairs made solely to protect your covered property from further damage provided coverage is afforded for the peril causing the loss, This coverage does not increase the Umit of Uability applying to the property being repaired. 2. Wreck Removal. We will pay the reasonable cost incurred by you for any attempted or actual raising, .. removal or destruction of the wreck of your covered watercraft if; Form No, L 1162 (' 2/94) page 4 of 13 PINE0921952sesL 1162C94 13. TO A TEMPORARY SUBST TE WATERCRAFT OR TRAILER: 14. CAUSED BY THE WEIGHT OF A LOAD EXCEEDING THE RATED CAPACITY OF YOUR COVERED WATERCRAFT OR TRAILER; 15, WHILE YOUR COVERED WATERCRAFT IS USED AS A PERMANENT OR PRIMARY RESIDENCE; 16. ARISING OUT OF AN ACCIDENT WHILE A PERSON IS EMPLOYED OR OTHERWISE ENGAGED IN THE BUSINESS OF SELLING, REPAIRING, SERVICING, STORING OR MOVING WATERCRAFT, INCLUDING TESTING AND DELIVERY; - 17. DAMAGE TO SAILS; OR 18, IF YOUR COVERED WATERCRAFT IS NOT KEPT IN A SAFE AND NAVIGABLE CONDITION WHENEVER AFLOAT AND/OR BEING OPERATED, LIMIT OF LIABILITY Our Limit of Liability for loss will be the lesser of the following amounts: 1, The actual cash value of your covered property at the time of loss; or 2. The amount necessary to repair or replace the property at the time of loss with deduction for depreciation where it applies; or 3. The applicable Limit of Liability as separately shown for the watercraft, motor, or trailer (including permanent equipment) on the Declaration Page. A separate Limit of Liability applies to each of the watercraft, motor, trailer and personal eHects as selected by you on the Application. The Limit of Liability listed on the Declaration Page as applying to personal eHects applies to all loss to all personal eHects resulting from a single loss. Our payment will be reduced by any applicable deductible shown on the Declaration Page. Only one deductible will apply to all damages arising from anyone loss. PAYMENT OF LOSS We may make payment for a loss to you or to the owner of the property. We may pay for loss in money or repair or replace the damaged or stolen property. We may, at our expense, return any stolen property to you or to the address shown on the Declaration Page. If we return stolen property, we will pay for any damage resulting from the theft. We may keep all or part of the property at an agreed or appraised value, but there shall be no abandonment to us. We are not obligated to pay for any diminution of value once the property has been repaired. You will be obligated to pay all storage charges once the property has been repaired or we have paid you for the loss in money. Payment for a loss is required only if you have paid the premium due us and have fully complied with the terms of this policy, NO BENEFIT TO BAILEE We will not recognize any assignment or grant any coverage for the benefit of any person or organization holding, storing or transporting your property for a fee regardless of any other provision of this policy. OUR OPTION TO REPAIR If the hull of your covered property is made in whole or in part of plywood, plastic, fiberglass, metal, aluminum or other molded material, we have the option of limiting payment for hull damage to the reasonable cost of applying suitable patches to the damaged area, in accordance with good repair practice. APPRAISAL If you and we fail to agree on the amount of loss, either may demand an appraisal of the loss, In this event, each party will select a competent and disinterested appraiser. If the appraisers agree on the amount of the Fonm No. L1162 (12194) page 6 of 13 PINE0921952B05L1162C94 a. the peril causing the Ie is covered; and b. removal or destruction of the wreck is required by law or governmental authority. The amount payable for damage to your covered watercraft plus the cost of removal or destruction of the wreck may exceed the physical damage coverage limit for your covered watercraft, In that case, an additional 5% of the applicable physical damage coverage limit for your covered watercraft will be available to cover wreck removal costs. 3. We cover personal effects up to a limit of liability not to exceed S1000 in the aggregate for anyone loss. This additional coverage does not apply to property separately described and specifically insured in this policy or any other insurance. EXCLUSIONS WE WILL NOT PAY FOR LOSS: 1. FROM DAMAGE DUE AND CONFINED TO WEAR AND TEAR, GRADUAL DETERIORATION, CORROSION, RUST, MARRING, SCRATCHING, DENTING, DOCK RASH, LATENT DEFECT, MECHANICAL BREAKDOWN, STRUCTURAL BREAKDOWN, FAULTY MANUFACTURE, INADEQUATE MAINTENANCE, INSECTS, VERMIN, RODENTS, BIRDS, DOMESTIC ANIMALS, MARINE LIFE, MOLD, WET OR DRY ROT, DAMPNESS OF ATMOSPHERE OR WEATHERING, SMOG, ICE, MOVING ICE, FREEZING, THAWING OR EXTREMES DF TEMPERATURE; 2. CAUSED BY ANY REPAIRING OR RESTORATION PROCESS OR SERVICE OR MAINTENANCE OPERATION UNLESS FIRE RESULTS AND THEN ONLY FOR LOSS CAUSED BY THE RESULTING FIRE; 3. CAUSED WHILE CARRYING PERSONS OR PROPERTY FOR A FEE, OR WHILE YOUR COVERED. PROPERTY IS RENTED TO OTHERS; 5. WHILE YOUR COVERED PROPERTY, EXCEPT FOR A SAILBOAT, IS BEING OPERATED IN AN. ORGANIZED OR PRE-ARRANGED RACE, SPEED TEST, OR SKI CONTEST; FROM WAR, INCLUDING UNDECLARED WAR, CIVIL WAR, INSURRECTION, REBELLION, REVOLUTION, WARLIKE ACT BY A MILITARY FORCE OR MILITARY PERSONNEL, DESTRUCTION OR SEIZURE OR USE FOR A MILITARY PURPOSE, INCLUDING ANY CONSEQUENCE OF ANY OF THESE. DISCHARGE OF A NUCLEAR WEAPON SHALL BE DEEMED A WARLIKE ACT EVEN IF ACCIDENTAL; 6. FROM NUCLEAR HAZARD, INCLUDING ANY NUCLEAR REACTION, RADIATION, OR RADIOACTIVE CONTAMINATION, ALL WHETHER CONTROLLED OR UNCONTROLLED OR HOWEVER CAUSED OR ANY CONSEQUENCE OF ANY OF THESE; " 4. 7. OCCURRING WHILE YOUR COVERED PROPERTY IS USED FOR ANY COMMERCIAL OR BUSINESS PURPOSE; 8. OCCURRING AS A RESULT OF OR DURING OPERATION BY A PERSON WHO IS LEGALLY INTOXICATED AS DEFINED IN THE JURISDICTION WHERE THE LOSS OCCURS OR UNDER THE INFLUENCE OF DRUGS OTHER THAN LEGALLY PRESCRIBED DRUGS TAKEN ON THE ADVICE OF A PHYSICIAN, 9. OCCURRING WHILE YOUR COVERED PROPERTY IS USED IN ANY ILLEGAL ACTIVITY OR ILLICIT TRANSPORTATION OR TRADE; 10. FROM DESTRUCTION, CONFISCATION OR SEIZURE BY ORDER OF ANY GOVERNMENT OR PUBLIC AUTHORITY; 11. FROM DAMAGE WHICH IS EXPECTED OR INTENDED BY YOU, A RELATIVE, OR ANY PERSON TO WHOM YOUR COVERED PROPERTY IS ENTRUSTED; 12, IF YOUR COVERED PROPERTY IS ABANDONED; Form No, L1162 (12/94) page S of 13 PINE09219S280SL 1162C94 . loss, they shall submit a written r rt to us and, sUbject to the provision cor, ed within the Limit of Liability in this Section A, this shall be deemed to bo tho amount of the loss. If the appraisers cannot agreo within a roasonable timo, they shall then choose a competent impartial umpire, provided that if they cannot agree on an umpire within fifteen (15) days, either you or we may petition a judge of a court having jurisdiction to choose an umpiro. The disagreement of the appraisers shallthon bo submitted to the umpire. Subject to the provisions contained within the Limit of Liability in this Section A, a writton agreement signed by two of these throe shall be deemed to be the amount at the loss. Each party will pay its chosen appraiser, and bear the expenses of the appraisal and ~mpire equally. We do not waive any of our rights under this policy by agreeing to an appraisal, OTHER INSURANCE If there is other applicable insurance on a loss covered by this SECTION A - PHYSICAL DAMAGE COVERAGE, we will pay only our share of the loss, Our share is the proportion that our Limit of Liability bears to the total limits of all applicable insurance, SECTION B - WATERCRAFT LIABILITY COVERAGE If you pay us a premium for Watercraft Liability Coverage, we will pay damages, OTHER THAN PUNITIVE OR EXEMPLARY DAMAGES, for which a covered person is legally liable because of bodily injury or property damage arising out of an accident. We will defend any lawsuit for damages payable under this policy or settle any claim for those damages that we think appropriate. We are not obligated to defend any lawsuit or make any additional payments after we have paid or offered to pay the Limit of Liability for this coverage, We have no duty to defend any lawsuit or settle any claims for bodily Injury or property damage not covered under this policy. ADDITIONAL DEFINITION USED IN THIS SECTION ONLY 1. "Covered person" as used in this Section B means: a, You or any relative with respect to an accident involving any watercraft; and b, Any person using your covered watercraft with your permission, if within the scope of your permission. ADDITIONAL PAYMENTS In addition to our Limit of Liability as shown on the Declaration Page, we will pay on behalf of a covered person: 1, All costs we incur in the settlement of any clair!) or defense of any lawsuit subject to other limitations of . this policy; 2. Premiums on bonds required in any lawsuit we defend, but not for bond amounts greater than our Limit of Liability for this coverage. We are not obligated to apply for or furnish any bond; 3.. Reasonable expenses incurred by any covered person at our request, including actual loss of earnings (but not loss of other income) up to $50 per day, for assisting us in the investigation or defense of any claim or suit; . 4, Interest, on amounts payable under Section B of this policy up to our Limit of Liability under this Section B, accruing after entry of judgment in any lawsuit we defend before we have paid or tendered payment of that portion of the judgment which does not exceed our Limit of Liability for this coverage; 5. Reasonable expenses incurred by any covered person for first aid to others at the time of accident Fonn No. L'162 (12194) page 7 of 13 PINEOS21ss28eSL1162C94 , EXCLUSIONS WE DO NOT PROVIDE WATERCRAFT LIABILITY COVERAGE, AND OUR DUTY TO DEFEND DOES NOT APPLY TO: 1. BODILY INJURY OR PROPERTY DAMAGE EXPECTED OR INTENDED BY ANY COVERED PE~SON OR AT THE DIRECTION OF ANY COVERED PERSON; 2. BODILY INJURY OR PROPERTY DAMAGE ARISING OUT OF THE OWNERSHIP, MAINTENANCE OR USE OF ANY WATERCRAFT WHILE RENTED TO OTHERS OR WHILE BEING USED TO CARRY PERSONS OR PROPERTY FOR A FEE; 3. BODILY INJURY OR PROPERTY DAMAGE CAUSED DIRECTLY OR INDIRECTLY BY WAR, INCLUDING UNDECLARED WAR, CIVIL WAR, INSURRECTION, REBELLION, REVOLUTION, WARLIKE ACT BY A MILITARY FORCE OR MILITARY PERSONNEL, DESTRUCTION OR SEIZURE OR USE FOR A MILITARY PURPOSE. AND INCLUDING ANY CONSEQUENCE OF ANY OF THESE. DISCHARGE OF A NUCLEAR WEAPON SHALL BE DEEMED A WARLIKE ACT EVEN IF ACCIDENTAL: 4. BODILY INJURY OR PROPERTY DAMAGE CAUSED BY ANY PERSON USING A WATERCRAFT WITHOUT THE PERMISSION OF THE OWNER OR A PERSON HAVING LAWFUL POSSESSION, OR CAUSED BY ANY PERSON EXCEEDING THE SCOPE OF PERMISSION GRANTED; 5, BODILY INJURY OR PROPERTY DAMAGE ARISING OUT OF THE OWNERSHIP, MAINTENANCE OR USE OF ANY WATERCRAFT, OTHER THAN A SAILBOAT, WHILE BEING USED IN AN ORGANIZED OR PRE.ARRANGED RACE, SPEED TEST, OR SKI CONTEST; 6. BODILY INJURY OR PROPERTY DAMAGE ARISING OUT OF PARASAILlNG, KITE SKIING OR ANY OTHER ACTIVITY INVOLVING A DEVICE DESIGNED FOR FLIGHT; 7. BODILY INJURY OR PROPERTY DAMAGE ARISING OUT OF THE USE OF WATER SLEDS, BOARDS, INNERTUBES, TUBES, TIRES, OR ANY OTHER DEVICE, EXCEPT FOR WATER SKIS, WHICH IS USED IN PLANING OVER WATER WHILE BEING TOWED BY A WATERCRAFT; 8. BODILY INJURY OR PROPERTY DAMAGE ARISING WHILE THE WATERCRAFT IS BEING TRANSPORTED BY LAND; 9. BODILY INJURY TO YOU, A RELATIVE, A COVERED PERSON, OR A RELATIVE OF A COVERED PERSON; 10. BODILY INJURY OR PROPERW DAMAGE WHEN ANY COVERED PERSON UNDER THIS POLICY IS ALSO INSURED UNDER A NUCLEAR ENERGY LIABILITY POLICY WHETHER OR NOT ITS LIMITS HAVE BEEN EXHAUSTED: 11. BODILY INJURY TO ANY PERSON ELIGIBLE TO RECEIVE BENEFITS REQUIRED TO BE PROVIDED OR VOLUNTARILY PROVIDED BY A COVERED PERSON UNDER ANY WORKERS' OR WORKMEN'S COMPENSATION LAW, NON-OCCUPATIONAL DISABILITY OR OCCUPATIONAL DISEASE LAW OR ANY SIMILAR LAW, OR THE FEDERAL LONGSHOREMEN'S AND HARBOR WORKERS' COMPENSATION ACT; 12. PROPERTY DAMAGE TO PROPERTY OWNED BY A COVERED PERSON OR RENTED TO, OCCUPIED OR USED BY, OR IN THE CARE OF A COVERED PERSON. THIS EXCLUSION DOES NOT APPLY TO A LAUNCHING RAMP, DOCK, OR BOAT STORAGE HOUSE RENTED EXCLUSIVELY TO YOU; 13, BODILY INJURY OR PROPERTY DAMAGE ARISING OUT OF THE OWNERSHIP, MAINTENANCE OR USE OF ANY WATERCRAFT WHILE IT IS USED FOR COMMERCIAL OR BUSINESS PURPOSES; 14. BODILY INJURY OR PROPERTY DAMAGE ARISING OUT OF AN ACCIDENT WHILE A PERSON IS EMPLOYED OR OTHERWISE ENGAGED IN THE BUSINESS OF SELLING, REPAIRING, SERVICING, STORING OR MOVING WATERCRAFT INCLUDING TESTING AND DELIVERY; I ) 11 i , ~.; r.t t , I " i,.... "1',',\ fL"" 'j ~':', Form No. L1, 62 (12194) page 8 of 13 PINE0921 952805L 1 162C94 15, THE OWNERSHIP, MAIN" ANCE OR USE OF ANY WATERC :=T, OTHER THAN YOUR COVERED WATERCRAFT, WHICH IS: a, OWNED DY YOU OR FURNISHED OR AVAILABLE FOR YOUR REGULAR USE; OR b. OWNED BY OR FURNISHED OR AVAILABLE FOR THE REGULAR USE BY ANY RELATIVE, HOWEVER, PART (b) OF THIS EXCLUSION DOES NOT APPLY TO YOU. 16, LIABILITY ASSUMED BY A COVERED PERSON UNDER ANY CONTRACT OR AGREEMENT, 17. BODILY INJURY OR PROPERTY DAMAGE SUSTAINED WHILE OCCUPYING A WATERCRAFT WHILE USED AS A PERMANENT OR PRIMARY RESIDENCE; 18. BODILY INJURY OR PROPERTY DAMAGE OCCURRING WHILE YOUR COVERED WATERCRAFT IS USED IN ANY ILLEGAL ACTIVITY OR ILLICIT TRANSPORTATION OR TRADE; OR LIMIT OF LIABILITY Regardless of the number of covered persons, claims made, premiums shown on the Declaration Page, watercraft involved in the accident, or lawsuits brought, we will pay no more than the Limits of Liability shown on the Declaration Page, subject to the following: 1. The Limit for "each person" is the maximum we will pay for bodily Injury sustained by anyone person in anyone accident, and only the limit for "each person" will apply to the aggregate of claims made for such bodily injury and any and all claims derived from such bodily Injury including, but not limited to, loss of society, loss of companionship, loss of services, loss of consortium, and wrongful death; 2. Subject to the bodily Injury Limit for "each person," the Limit for" each accident" is the maximum we will pay for bodily Injury sustained by two or more persons in anyone accident and includes all ; . derivative claims which include, but are not limited to, loss of society. loss of companionship, loss of services, loss of consortium, and wrongful death; .; , . ,. . "'.' 3, The property damage Limit for "each accident" is the maximum we will pay for all property damage in one accident. If your Declaration Page indicates that Combined Single Limits apply, the maximum'.:;:, we will pay for the aggregate of all damages resulting from anyone accident is the Combined Single" Limit shown on the Declaration Page. OTHER INSURANCE Subject to our Limit of Liability, if there is other applicable insurance, we will pay only our share of the loss. ., Our share is the proportion that our Limit of Liability bears to the total of all applicable limits, However, any:.." insurance we provide with respect to a watercraft you do not own shall be excess over any other collectible.. insurance. i I J iJ. I j.,. . .1 Ii, i)' :\1 ,PI , 1'1 :/l'.' 'I.' "I . 11"0, j,! "(,' ! i!f:}: 1-"'," : ~ ( ,. 1'\' " 1;, 1.1, '\ !,i)!c':J .'..;.....t'.';;'.:.;~.-,i.. ,~ ,"J' 'r~ ).~ ..,"......'./. \.':\ . "'~",..' .7.~{,?:-J: SECTION C - MEDICAL PAYMENTS COVERAGE If you pay us a premium for Medical Payments Coverage, we will pay reasonable and necessary medical expe~ses incurred by a covered person because of bodily injury caused by an accident and sustained by that covered person. We will pay only those medical expenses incurred within one (1) year from the date of the accident. ADDITIONAL DEFINITIONS USED IN THIS SECTION ONLY 1, "Covered person" as used in this Section C means: a. You or any relative while occupying any watercraft while it is in the water or while it is in the process of being launched or removed from the water; or b, Any other person while occupying your covered watercraft while it is in the water or while it is in the process of being launched or removed from the water, Provided, however, that your Form No. L1162 (12194) page 9 of 13 PINE0921952805L1162C94 covered watercraft i~ 'ng operated with your express perrTIiss" '" and within the scope of such permission, Persons being towed by the boat in any manner, including but not limited to water skiers and individuals on water sleds, boards, innertubes, tubes, or tires, are excluded from Medical Payments coverage unless Water Skiers Medical Payments Coverage is included on the Declaration Page and an additional premium is paid, 2. "Medical elCpenses" means reasonable charges for medical, surgical, x.ray, denial, ambulance, hospital, professional nursing, prosthetic devices and funeml services, EXCLUSIONS WE DO NOT PROVIDE MEDICAL PAYMENTS COVERAGE FOR ANY PERSON FOR BODILY INJURY: 1. EXPECTED OR INTENDED BY ANY COVERED PERSON OR AT THE DIRECTIO~ OF A COVERED PERSON; 2. ARISING OUT OF THE OWNERSHIP, MAINTENANCE OR USE OF ANY WATERCRAFT WHILE RENTED TO OTHERS OR WHILE BEING USED TO CARRY PERSON OR PROPERTY FOR A FEE; 3. CAUSED DIRECTLY OR INDIRECTLY BY WAR, INCLUDING UNDECLARED WAR, CIVIL WAR, INSURRECTION, REBELLION, REVOLUTION, WARLIKE ACT BY A MILITARY FORCE OR MILITARY PERSONNEL, DESTRUCTION OR SEIZURE OR USE FOR A MILITARY PURPOSE, AND INCLUDING ANY CONSEQUENCE OF ANY OF THESE. DISCHARGE OF A NUCLEAR WEAPON SHALL BE DEEMED A WARLIKE ACT EVEN IF ACCIDENTAL; 4. ARISING OUT OF THE OWNERSHIP, MAINTENANCE OR USE OF A WATERCRAFT, OTHER THAN A SAILBOAT, WHILE BEING USED IN AN ORGANIZED OR PRE-ARRANGED RACE, SPEED TEST, OR SKI CONTEST; 5. SUSTAINED WHILE OCCUPYING ANY WATERCRAFT WHEN IT IS BEING USED FOR COMMERCIAL OR BUSINESS PURPOSES; 6, SUSTAINED WHILE OCCUPYING ANY WATERCRAFT, OTHER THAN YOUR COVERED WATERCRAFT, WHICH IS: a. OWNED BY YOU OR FURNISHED OR AVAILABLE FOR YOUR REGULAR USE; b. OWNED BY OR FURNISHED OR AVAILABLE FOR THE REGULAR USE BY A RELATIVE: 7, FOR WHICH THAT PERSON IS ELIGIBLE TO RECEIVE ANY BENEFITS REQUIRED TO BE PROVIDED OR VOLUNTARILY PROVIDED UNDER ANY WORKERS' OR WORKMEN'S COMPENSATION LAW, NON.OCCUPATIONAL DISABILITY OR OCCUPATIONAL DISEASE LAW OR SIMILAR LAW, OR THE FEDERAL LONGSHOREMEN'S AND HARBOR WORKERS' COMPENSATION ACT; . 8. CAUSED BY ANY NUCLEAR REACTION, RADIATION OR RADIOACTIVE CONTAMINATION, ALL WHETHER CONTROLLED OR UNCONTROLLED OR HOWEVER CAUSED, OR ANY CONSEQUENCE OF ANY OF THESE; 9, SUSTAINED WHILE THE WATERCRAFT IS BEING TRANSPORTED BY LAND; 10, SUSTAINED WHILE PARASAllING, KITE SKIING OR BEING TOWED IN ANY OTHER DEVICE DESIGNED FOR FLIGHT; . 11. SUSTAINED WHILE OCCUPYING A WATERCRAFT WHILE USED AS A PERMANENT OR PRIMARY RESIDENCE; 12. WHILE INVOLVED IN A FELONY OR ANY ILLEGAL ACTIVITY; Form No. L" 62 (12/94) page 10 of 13 PINE0921 952B05L 1 162C94 .. , 13. ARISING OUT OF AN ACC NT WHILE A PERSON IS EMPLOYED OTHERWISE ENGAGED IN THE BUSINESS OF SELLING, REPAIRING, SERVICING, STORING UR MOVING WATERCRAFT, INCLUDING TESTING AND DELIVERY; OR :" ..... LIMIT OF LIABILITY The Limit of Liability shown on the Declaration Page for this coverage is the maximum we will pay for each person injured in anyone accident. This is the most we will pay regardless of the number of covered persons, claims made, premiums shown on the Declaration Page, or watercraft involved in the accident. Any amounts otherwise payable for expenses under this coverage shall be reduced by any amounts paid or payable for the same expenses under Section B . Watercraft Liability Coverage or the Uninsured Boaters Coverage Endorsement, if applicable. No payments will be made unless the injured person or that person's legal representative agrees in writing that any payment shall be applied toward any settlement or jUdgment that person receives under Section B . Watercraft Liability Coverage or the Uninsured Boaters Coverage Endorsement, if applicable, OTHER INSURANCE If there is other applicable insurance which would apply for medical or funeral expenses, the insurance under this Section shall be excess over any other collectible insurance. We will not be liable under this policy for any medical expenses paid or payable under the provisions of any; 1. premises insurance providing coverage for medical expenses; 2. individual, blanket, or group accident, disability or hospitalization plan; 3. medical, surgical, hospital or funeral services benefit or reimbursement plan; or 4. Workers' Compensation or Disability Benefits law or any similar law. SECTION 0 - GENERAL PROVISIONS 1. POLICY PERIOD This policy applies only to accidents and losses which occur during the policy period as shown on the Declaration Page, and within the policy territory. 2, POLICY TERRITORY The policy territory is land, tributaries, inland lakes, bays and rivers of the continental United States or Canada, No coverage is granted hereunder when operating in coastal waters, oceans, seas or gulfs. 3. CHANGES . This policy with the Declaration Page and Appli~ation includes all the agreements between you and us relating to this insurance. No change or waiver may be affected except by written endorsement issued by us, The premium for each term of this policy is determined by information in our possession at the inception date of that term, Any change in this information which would affect the rating of your policy gives us the right to make an additional charge or refund on a pro-rata basis, You have a duty to inform us of any such change, 4. LEGAL ACTION AGAINST US No suit or action whatsoever or any proceeding instituted or processed in arbitration shall be brought against us for the recovery of any claim under this policy unless the insured or hislher legal representative has fully complied with all the terms of the policy and unless such suit, action or proceeding is commenced within two years of the date of the accident. We may not be sued under Section B - Watercraft Liability Coverage until the obligation of a covered person to pay is finally determined either by judgment against that person or by written agreement of the covered pe'rson, the Form No. L1162 (12194) page 11 of 13 PINE0921952BOSL1162C94 ,- . f ' r; r :, .~':, , " ~ )' 1\ h' {O' claimant and us. No one s' have any right to make us a pa,ty to a . vsuit to determine the liability of a covered person, 5. TRANSFER OF YOUR INTEREST IN THIS POLICY .. ~. .' Your interest in this policy may not be assigned without our written consent. If the person named on the Declaration Page dies, the pOlicy will provide the same coverages until the end of the policy period for: a. Your surviving spouse, it a resident of your household at the time of death; and b. Your legal representative while acting within the scope of duties of a legal representative. 6. OUR RIGHT TO RECOVER PAYMENT In the event of any payment under this policy, we are entitled to all the rights of recovery that the covered person to whom payment was made has against another. That covered person must sign and deliver to us any legal papers relating to that recovery. so whatever else is necessary to help us exercise those rights, and do nothing aher loss to prejudice our rights. When a covered person has been paid by us under this policy and also recovers from another, the amount recovered from the other shall be held by that covered person in trust for us and reimbursed to us to the extent of our payment, less reasonable attorney fees and a proportionate share of the cost of recovery, In the event recovery has already been made from the responsible party without our written consent, that covered person's rights to payment under any coverage under this policy will no longer exist. 7. TWO OR MORE POLICIES If this policy and any other policy issued to you by us apply to the same accident or loss, the maximum limit of our liability under all the policies shall not exceed the highest applicable limit of liability under any one policy. You cannot stack coverages or policies. 8. RENEWAL PROVISIONS Renewal of this policy is subject to our consent. When we consent to renew this policy, you must pay the renewal premium in advance. Your policy will expire, and you will have no coverage, if we do not receive the required payment by the renewal date. 9. CANCELLATION AND NON-RENEWAL PROVISIONS The Company may cancel the policy by mailing to the insured, at the address shown in the policy or at a forwarding address, written notice of cancellation at least 30 days prior to the proposed cancellation date. If this policy has been in effect for 60 days or more, or if it is a renewal of a policy issued by this Company, effective immediately, the Company will exercise its rights to cancel only for one or more of the following reasons: a. the policy was obtained through material misrepresentation, fraudulent statements, omissions or concealment of fact material to the acceptance of the risk or to the hazard assumed by the Company; b. there has been a substantial change or increase in hazard in the risk assumed by the Company subsequent to the date the policy was issued; c. there is a substantial increase in hazards insured against by reason of willful or negligent acts or omissions by the insured; d. the insured has failed to pay any premium when due, whether such premium is payable directly to the Company or its agent or indirectly under any premium finance plan or extension of credit; or e, for any other reasons approved by the Pennsylvania Insurance Commissioner. Fonn No. L1162 (12/94) page 120f13 PINE09219S2B05L1162C94 ! This provision shnll not nppl ~ho nnmod insured hns demonstrated by ne ovort net ion to the insurer or Its agent that the insured wishes the policy to be canceled. This Company will not fail to renow this policy with tho types and limits of covorage at least equal to thoso contnined in tho policy boing superseded while this Company is issuing policies for this kind and class of insurance in the State of Pennsylvania except for one of the reasons referred to in the Cancellation Provision of this Endorsement, and the Company may refuse to renew for one of the listed reasons, by mniling to the insured at the address shown in the policy or at a forwarding address, written notice of such nonrenewal at least 30 days prior to the termination date of this policy. This provision shall not apply if: a. this Company has indicated its willingness to renew and the insurod has failed to pay the premium by the due date: or b. the named insured has indicated to the insurer or its agent that the insured does not wish the policy to be renewed. Delivery of such written notice by the Company to the insured at the address shown in the policy or at a forwarding address shall be equivalent to mailing, Upon cancellation, you may be entitled to a premium refund. If the premium refund is S5.00 or less, no refund will be sent unless you specifically request a refund. Upon cancellation, if you owe the company $5.00 or less, we will waive the amount due. Our making or offering of a refund is not a condition of cancellation. If cancellation is for non-payment of premium or at your request, the earned premium shall be computed in accordance with our short-rate table as filed with the Pennsylvania Department of Insurance. The effective date of cancellation stated in a notice is the end of the policy, 10. FRAUD AND MISREPRESENTATION This policy shall be void at inception if you, anyone acting on your behalf, or any covered person has concealed or misrepresented any material fact, or if any fraud is committed or attempted concerning any matter regarding this policy or application, whether before or after a loss, 11. BANKRUPTCY We are not relieved of any obligation under this policy because of the bankruptcy or insolvency of any covered person. 12. TERMS OF POLICY CONFORM TO STATUTES Terms of this policy which conflict with the statutes of the state in which this policy is issued are hereby amended to conform to those statutes, ,In Witness Whereof, we have caused this policy to be executed and attested, QJJH sila Secretllry ~ Form No, L1162 (12/94) page 13 of 13 PINE09219S280SL 1162C94 - , OTH'l:RINSURANCE If at the time of loss thore is available any other insurance which would apply in the absonce of this Coverage, the insurance under this policy will apply only as excess over tho othor insuranco. ARBITRATION a covered person and we have not reached an agreement (1) that the covered person is legally entitled to recover damages from the owner or operator of an uninsured boat, or (2) as to the amount of payment under this Coverage. the covered person shall make written demand upon us within two (2) years from the date of the accident that the issue be determined by arbitration. In that event, the matter or matters upon which an agreement has not been reached shall be determined by arbitration conducted in accordance with the rules of the American Arbitration Association unless other means of conducting the arbitration are agreed to by the covered person and us subject to the terms of this insurance, No lawsuit or action whatsoever or any proceeding in arbitration shall be brought against us for the recovery of any claim under this Endorsement unless the covered person has satisfied all of the things that covered person is required to do under this policy and unless the lawsuit or arbitration is commenced within two (2) years from the date of the accident. TRUST AGREEMENT If we make payment under this Endorsement: 1. we are entitled to recover from the covered person an amount equal to such payment if there is a legal settlement made on the covered person's behalf against any person or organization legally responsible for the bodily injury; 2. the covered person must hold in trust for us all rights to recover money which the covered person has against any person or organization legally responsible for the bodily Injury: the covered person must do everything proper to secure our rights and do nothing to prejudice these rights; and we ask the covered person in writing, the covered person agrees to and shall take necessary or appropriate action, through a representative designated by us, to recover payment as damages from the responsible person(s} or organization. If there is a recovery. we shall be reimbursed out of the recovery for expenses, costs and attorney fees incurred in connection with this recovery; and , 4. the covered person must execute and deliver to us any legal instruments or papers necessary to secure the rights and obligations of the covered person and us as established in this Endorsement. All other terms and conditions of this policy remain unchanged, 5. Form No. L9027PA (3.92) PINE09229S2e03L9027P A ...,..--...........-.'!"""'I.'. WATER SKIER'S MEDICAL PAYMENTS ENDORSEMENT If you pay us a premium for Waler Skier's Medical Payments Coverage, we agree with you to change Section C . Medical Payments as follows: The definition of covered person is deleted and replaced with the following: Covered person means: 1, you or any relat/ve while occupying any watercraft while it is in the water or while it is in the process of being launched or removed from the water. 2, any other person while occupying your covered watercraft while it is in the water or while it is in the process of being launched or removed from the water, 3, you or any relative while on water skis or a water sled being towed by any watercraft, 4. any other person while on water skis or a water sled being towed by your covered watercraft, Section C, Exclusions 4, 6, and 7 are deleted and replaced with the following: 4. Sustained while occupying any watercraft or while on water skis or a water sled being towed by a watercraft without a reasonable belief that the person is entitled to do so. 6. Sustained while occupying any watercraft or while on water skis or a water sled being towed by a watercraft when it is being used for commercial or business purposes, I. Sustained while occupying any watercraft other than your covered watercraft or while on water skis or a water sled being towed by any watercraft other than your covered watercraft which is: a. owned by you or fumished or available for your regular use; b, owned by or furnished or available for the regular use of a relative. All other definitions, terms and conditions of this Polfcy remain unchanged, Fann No. L9028PA (9-89) PINE0922952603L9028PA .' (' ROADSIDE ASSISTANCE COVERAGE ENDORSEMENT nOADSIDE ASSISTANCE COVERAGE INSURING AGREEMENT If this endorsement is shown on your Declarations Page, we will pay reasonable and necessary costs for towing to the nearest qualified repair facility and roadside labor incurred by you or a relative for disablements of your covered vehicle while towing your covered watercraft due to a covered emergency. ADDITIONAL DEFINITIONS When used in this Roadside Assistance Coverage Endorsement: 1. "Covered vehicle" means: a, any vehicle used to tow your covered trailer; b, your covered trailer. However, your covered vehicle does not include: a, off.road vehicles not subject to motor vehicle registration and licensing. b, vehicles used for business or commercial purposes, 2. "Covered emergency" means a disablement that is a result of: a, mechanical or electrical breakdown; b, battery failure; c. insufficient supply of fuel. oil. water, or other fluid; d. flat tire; e. lock.out; or f, entrapment in snow. mud, or sand within 100 feet of a road or highway, .:xCLUSIONS Coverage under this endorsement does not apply to: 1, cost of parts. replacement keys, fluid. lubricants. or fuel; 2. cost of installation of products. material, and additional labor not related to towing; 3, mechanical assistance exceeding sixty (60) minutes; 4. any and all fines; 5, expenses incurred for transportation or temporary living expenses; 6, towing or storage .charges related to impoundment. abandonment, illegal parking, or other violations of law; 7, assistance with jacks, levelers, airbags, or awnings; 8. damage due to fire, flood. or vandalism; 9, towing from or repair work performed at a service station, garage. or repair shop; 10. towing by other than an authorized service provider; 11, vehicle storage charges; 12, a second tow for a single disablement; 13. service on your vehicle that is not in a safe condition to be serviced; 14. disablements on roads not regularly maintained. such as sand beaches. open fields, and areas designated as not passable due to construction; 15. mounting or removing of snow tires or chains; 16, tire repair; 17, repeated service calls for your vehicle in need of routine maintenance or repair; 18, disablements that result from the willful acts or actions of the operator of your vehicle; 19. disablement not resulting from a covered emergency; 20, disablements resulting from the use of intoxicants or narcotics; 21, disablements when your vehicle is used in the commission of a felony, ALL OTHER DEFINITIONS, TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED Fa"" No. 9864 (12/96) PINE04019726031.9864C96 UNINSURED BOATERS COVERAGE ENDORSEMENT .r you pay us a specific premium for Uninsured Boaters Coverage. we will pay damages. OTHER THAN PUNITIVE OR EXEMPLARY DAMAGES OR ATTORNEY FEES, for bodily Injury to a covered person which that person is legally entitled to recover from the owner or operator of an uninsured boat up to the Limit of Liability as defined in this Endorsement. The bodily Injury must be caused by accident and arise out of the ownership, maintenance or use of an uninsured boat, Determination whether a covered person is legally entitled to recover damages and the amount of damages shall be made by agreement between the covered person and us. If no agreement is reached. the decision shall be made by arbitration. SUCH ARBITRATION MUST BE DEMANDED IN WRITING WITHIN TWO YEARS AFTER THE DATE OF THE ACCIDENT. If a lawsuit is brought without our written consent to determine legal liability or damages, or brought with our written consent to determine legal liability or damages and a default judgment is entered, we are not bound by any resulting judgment. ADDITIONAL DEFINITIONS USED FOR THIS COVERAGE ONLY .Covered Person" as used in this endorsement means: 1, you or any relative; 2. any other person occupying your covered watercraft, .Unlnsured boat" means a boat or watercraft: to which no bodily injury liability policy applies at the time of the accident; or 2, to which a bodily injury liability policy applies at the time of the accident, but the insuring company denies coverage or is or becomes insolvent; or 3, which is a hit-and-run boat or watercraft whose operator or owner cannot be identified and which strikes: a. you or any relative; or b, . a watercraft which you or any relative are occupying; or c, your covered watercraft. provided that the covered person or someone on his or her behalf must report the accident to the Coast Guard or police within twenty-four (24) hours, However. an uninsured boat does not include any boat or watercraft owned by or fumished or available for regular or frequent use by you or any relative. All other definitions of this polley remain unchanged, EXCLUSIONS WE DO NOT PROVIDE UNINSURED BOATERS COVERAGE FOR BODILY INJURY SUSTAINED BY' ANY PERSON: 1, WHILE OCCUPYING. OR WHEN STRUCK BY. ANY BOAT OR WATERCRAFT OWNED BY YOU OR ANY RELATIVE: 2, IF THAT PERSON OR THE LEGAL REPRESENTATIVE OF THAT PERSON MAKES A SETTLEMENT OR PROSECUTES ANY ACTION TO JUDGMENT WITHOUT OUR WRITTEN CONSENT; Fonm No, L9027PA (3-92) PINE09229S2603L9027PA 3, 'WHILE OCCUPYING ANY Br 'T OR WATERCRAFT WHEN IT IS BEI~'~ USED TO CARRY PERSONS OR PROPERTY FOR A FEE OR '_ AENTED TO OTHERS; 4. WHILE USING OR OCCUPYING ANY BOAT OR WATERCRAFT WITHOUT THE PERMISSION OF THE OWNER OR A PERSON HAVING LAWr:UL POSSESSION, OR CAUSED BY ANY PERSON EXCEEDING THE SCOPE OF PERMISSION GRANTED; OR 5. WHILE OCCUPYING ANY BOAT OR WATERCRAFT WHILE IT IS BEING USED FOR COMMERCIAL OR BUSINESS PURPOSES. ,r" '. THIS COVERAGE WILL NOT APPLY DIRECTLY OR INDIRECTLY TO BENEFIT ANY INSURED OR SELF.INSURER UNDER ANY WORKERS' COMPENSATION LAW, DISABILITY BENEFITS LAW OR SIMILAR LAW. LIMIT OF LIABILITY The Limit of Liability shown on the Declaration Page for this Coverage is the maximum we will pay for all bodily injury resulting from anyone accident. This is the most we will pay regardless of the number of covered persons, claims made, watercraft insured, separate premiums paid, watercraft involved in the accident or lawsuits brought. The Limit will apply to the aggregate of claims made for such bodily injury and any and all claims derived from such bodily injury including, but not limited to, loss of society, loss of companionship, loss of services, loss of consortium, and wrongful death. Any amounts otherwise payable under this Coverage shall be reduced by: 1. all sums paid because of bodily injury by or on behalf of persons or organizations who may be legally responsible. This includes all sums paid under Section B . Watercraft Liability Coverage of this policy; 2, all sums paid under Section C . Medical Payments Coverage of this policy; and 3. all sums paid or payable under a workers' compensation law, disability benefits law, or any similar law. Any payment under this Coverage to or for a covered person will reduce any amount that person is entitled to recover under Section B . Watercraft Liability Coverage or Section C . Medical Payments Coverage of this policy, PROOF OF CLAIM: DUTIES The "Your Duties in Case of Accident or Loss" Section of your policy applies to this Coverage, and under this coverage: 1. Each person making claim must give us full details of their injuries and treatment. Proof of claims shall be submitted on forms provided by us unless we fail to provide them within fifteen (15) days after notice of the claim. 2, Such person shall, after each request from us, execute authorizations to enable us to obtain medical reports and records relating to employment. 3. Such person shall initiate suit against the uninsured boat owner or operator at our request to protect all legal rights such person making claim or we have against such an uninsured boat owner or operator, 4. If a person making claim under this Coverage undertakes any legal action against the uninsured boat owner or operator, such person making claim shall provide written notice to us advising us of such action. Form No. L9027PA (3.92) PINE09229S2603L9027P A REPLACEMENT COST PERSONAL EFFECTS COVERAGE ENDORSEMENT If this endorsement is shown on the Declaration Page of your policy, and premium has been paid for this coverage we agree with you to amend the SECTION A . PHYSICAL DAMAGE COVERAGE: ADDITIONAL COVERAGES, Personal Effects section of your policy as follows: , " DEFINITIONS: ,~ ~ 1. Portable Boating Equipment means your detachable boating equipment usually required on board for the operation or upkeep of a watercraft including anchors, oars, oarlocks, tarpaulins, boat and motor covers, lights, lire extinguishers, extra luel tanks, bilge pumps, cookstoves. deck chairs, extra batteries, horns, flares, hand tools, convertible tops, and seat cushions while such equipment is at1ached to or contained in or on your covered watercraft, Portable boating equipment includes water skiing equipment, and portable electronic equipment specifically designed for marine use, Portable Boating Equipment is considered part of the .covered watercraft, It does not include: portable electronic equipment not specifically for marine use, photographic equipment, fishing gear, and other sporting equipment and personal effects. 2. Personal Effects means clothing, miscellaneous personal property, lishing gear (up to a $300 limit) and sports equipment which belongs to you or a relative, 3. Coverage provided - Personal Effects are insured while on board the insured watercraft and while being carried on and olf. We will not cover money, jewelry, travelers checks, or other valuable papers or documents (ie: securities, stamp or coin collections, etc,). "xcept as otherwise provided in your policy or in this endorsement. we will pay, for a personal effects loss, up to the ,mallest 01 the following amounts: 1, The amount necessary to replace your property with new property at the time of loss up to the amount shown on your declaration page (except for the fishing gear limit noted above). If you decide not to replace your property, we will pay the actual cash value at the time 01 loss. 2. The amount for which your property could reasonably be repaired to its condition immediately before the loss without depreciation. If you decide not to repair your property payment will be made on actual cash value basis. You may make another claim within 180 days after the loss lor an additional payment il you decide to repair your property, All claims must have been a result 01 the original loss. We may set1le the loss by: a. Paying the amount of coverage in money; or b. Paying the cost of repairing the damage; or c. Replacing the damaged or lost property with property of like description, condition, quality and value, Our payment will be reduced by any applicable deductible. ALL OTHER DEFINITIONS, TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED, Form No, 6017 (11-95) PINE0118962603L6017B95 .' ~' OPTIONAL TOWING AND EMERGENCY SERVICE ENDORSEMENT If you pay us a premium for towing and emergency service, we will pay up to the limit of liability shown on the Declaration Page for the cost of towing or labor arising out of the disablement of your covered watercraft. Labor costs are covered only for labor performed at the time and place of disablement. All other parts at the Polley remain unchanged, Form No. L9026PA (3-89) PINE09229526031.!1026PA , ,\ THOMAS E. T.""oy F'RANCIS X. OILLON LARAY HA,.T THOMAS E. Kop.... "ltCH...eL F''''NNINO WILLIAM T. OION- RusseL" ~. S"'CCO. TR...CY A. TIM8Y. .Ar.,SO Ao",.nco IN NCw ,JCRSey TIMBY AND DILLON A PROFE:5SIONAL CORPORATION ATTORNeyS AT l..Aw THE BARCLAY BUILOING :130 SOUTH STATE STREET POST OF'f:'ICe: BOX 99 NCWTOWN. PENNSYLV^NIA. 16940 TE:L.12t~1968.ee86 FAX 121~1 966.9432 New JEASey O""ICC 445 WHITE HOAse Avc. SUITe 2046 TACNTON, New JERSey 06610 16091561.8646 FACSIMILE COVER PAGE OeNISE M. O'OONNEL" LEO..... A:sSIST"'Ni TO: iu~7' P,(/(j4/7 ~ . FROM: j)J/t'[ If? '(}'-1rC €/Fr( 1/7- c? L/'l- ~ /# DATE: /J -q 7-7" 3' RE: Ut-(/tllJTb//C) f/, NUMBER OF PAGES: "7 ,.7 FAX NUMBER: -, TIME: ~~~-Sc> / //'e' FILE NO.: MESSAGE: ------------------------------------------------------------------- , The documents accompanying this telecopy transmission contain information from the Law Firm of,. Timby & Dillon which is .confidential and/or legally privileged. The information is intended only for the use of the individual or entity named on this transmission sheet. If you are not the intended recipient, you are hereby notified that any disclosure, copying, distribution or the taking of any action in reliance on the contents of this telecopy information is strictly prohibited and that the documents should be returned to this firm immediately. In this regard, if you have received this telecopy in error, please notify us by telephone immediately so that we can arrange for the return of the original documents to us at no cost to you. . . . . ADDAMS& RUNDLE .. .. .c.: :--'-ArrQ.'lNEYSArl:AW : .... :.: .'. .. 28 SOUTH PI.lTSTREET CARLISLE, PENNSVLVANIA 17013 TELEPHONE (717) 249.8300 ,........,.c..._.;._._.e..._._...... RICHARD A, BLUMENSTEIN, JR" Plaintiff IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA v, NO, 98-3469 CIVIL TERM PROGRESSIVE, Defendant JURY TRIAL DEMANDED REPLY AND NOW, comes the Plaintiff, Richard A, Blumenstein, Jr" by his attorneys, Addams & Rundle, and makes the following reply to the defendant's answer with new matter: The conclusion of law is denied, The conclusion of law is denied. The conclusion of law is denied, The conclusion of law is denied. Admitted, 9, 10, 11, 12, 13-16, 17, The conclusion of law that the Defendant has complied with the policy is denied, 18, Admitted, 19, The conclusion of law is denied, 20-21, Admitted, 22. Denied, Neither party has requested or demanded an appraisal, The "valuation report" does not purport to be an appraisal, nor does it identify an appraiser, 23, Denied. The answer to Paragraph 22 is incorporated herein by reference, WHEREFORE, the Plaintiff requests the new matter be dismissed, ADDAMS & RUNDLE By: --;J(~~/ WilliafilA. Addams Supreme Court I,D, No. 06265 28 South pitt Street P.Q, Box 208 Carlisle, PA 17013 (717) 249-8300 Attorneys for Plaintiff ADDAMS'& RUNDLE , . ATTORNEV&AT LAW, 28 SOUTH PITT STREET.' . .. CARLISLE, PENNSVLVANIA 17013 TELEPHONE (717) 249.8300 . '-;" RICHARD A, BLUMENSTEIN, JR., Plaintiff v. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 98-3469 CIVIL TERM JUDGE J. WESLEY OLER, JR. JURY TRIAL DEMANDED i PROGRESSIVE, Defendant ORDER OF COURT AND NOW, this day of December, 1998, upon consideration of the within motion, a rule is issued on the Defendant, Progressive, to show cause why sanctions for its failure to respond to Plaintiff's request for production of documents should not be imposed which would prohibit it from calling witnesses and introducing evidence to contest the plaintiff's damages, and the imposition of attorney's fees for the prosecution of the motion. RULE returnable at O'clock m, in Courtroom No. By the Court J, RICHARD A. BLUMENSTEIN, JR., Plaintif f IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO, 98-3469 CIVIL TERM JUDGE J, WESLEY OLER, JR, v, PROGRESSIVE, Defendant JURY TRIAL DEMANDED MOTION FOR SANCTIONS AND NOW, comes the Plaintiff, Richard A, Blumenstein, Jr., by his attorneys, Addams & Rundle, and respectfully moves your Honorable Court to issue an order imposing sanctions on the Defendant in accordance with Pa, R,C,P, 4019 and in support thereof asserts the following: 1, This is an action on an insurance policy arising out of the theft of the Plaintiff's boat. 2. The complaint was filed on June 22, 1998, and the pleadings are closed, 3, The Defendant has finally admitted liability under exist regarding the value of the the policy, but various issues insured p~operty. 4, On September 14, 1998 the undersigned served the request for production of documents pursuant to Pa. R,C,P, 4009 which is attached as Exhibit "A". 5. On twenty (20) production. 6, On November 6, 1998 the undersigned wrote to Defendant's counsel to remind him that his response was due on November 17, 1998, and followed with the letters of November 18 and October 27, 1998 day extension of the Defendant's time to respond attorney requested a to the request for December 1, 1998, which are attached as Exhibits "B-1, B-2 and B-3", respectively. 7, The Plaintiff has complied with all of the Defendant's discovery requests, " RICHARD A. BLUMENSTEIN, JR" Plaint if f IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA v, NO, 98-3469 CIVIL TERM PROGRESSIVE, Defendant JURY TRIAL DEMANDED REQUEST FOR PRODUCTION OF DOCUMENTS TO: Progressive and Michael J. McCarrie, Esquire, its attorney AND NOW, this 14th day of September, 1998, pursuant to Pa, R.C,P. 4009, comes the Plaintiff, Richard A. Blumenstein, Jr., by his attorneys, ADDAMS & RUNDLE, and requests the Defendant, Progressive, to produce for inspection, examination and copying, at the offices of ADDAMS & RUNDLE, not later than thirty (30) days after service of this Request, the following documents: 1, All photographs in the possession, custody or control of the Defendant, counsel for Defendant, or any other person or entity acting on behalf of the Defendant, showing, representing or purporting to show any locales, instrumentalities, persons, and any and all other matters related to the subject matters of this litigation. 2, . All statements, signed statements, transcripts of recorded statements or interviews, recorded statements, if not transcribed or any notes or records of recorded statements, if not transcribed taken of any party, person, or witness as part of an investigation of the incident in question. conducted by, or in the possession of Defendant, its attorney, or anyone else acting on behalf of Defendant. 3. All documents prepared by Defendant, its representatives, agents or anyone acting on behalf of Defendant except its attorneys, during an investigation of any aspect of the incident in question. Such documents shall include any documents made or prepared up through the present time, with the exclusion of the mental impressions, conclusions, or opinions Exhibit "A"