Loading...
HomeMy WebLinkAbout14-1818 Supreme Cou r' Hof Pennsylvania COU 1' Pleas For Prothonotary Use Only: T ' Cil'�Co eSh t �' f 0 C. ht" ;l Docket No: Cu �j fVl =r" 8 •R�Ahi0� County 1,• x a o I i The information collected on this form is used solely for court administration purposes. This form does nol supplement or replace the filing and service of pleadings or other papers as required by law or rules of court. ' Commencement of Action: S Complaint n Writ of Summons Petition Transfer from Another Jurisdiction M Declaration of Taking E C Lead Plaintiff's Name: Lead Defendant's Name: T Motorists Mutual Insurance Company Scott Farrell, Sr., et al Dollar Amount Requested: Ell arbitration limits I Are money damages requested? 0 Yes EN No (check one) _J outside arbitration limits O N Is this a Class Action Suit? 0 Yes El No Is this an MDJAppeal? G Yes = No A Name of Plaintiff /Appellant's Attorney: Charles L. McNabb, Esquire Check here if you have no attorney (are a Self- Represented [Pro Se] Litigant) r Nature of the Case Place an "X" to the left of the ONE case category that most accurately describes your PRIMARY CASE. If you are making more than one type of claim, check the one that you consider most important. TORT (do not include Mass Tort) CONTRACT (do not include Judgments) CIVIL APPEALS Q Intentional M Buyer Plaintiff Administrative Agencies ❑ Malicious Prosecution ❑ Debt Collection: Credit Card F_J1 Board of Assessment 0 Motor Vehicle FLIJ Debt Collection: Other 0 Board of Elections E Nuisance [3 Dept. of Transportation rA Premises Liability J Statutory Appeal: Other S Product Liability (does not include mass tort) i� Employment Dispute: E � Slander/Libel/ Defamation Discrimination El C © Other: Employment Dispute: Other Zoning Board T Other: I 0 Other: O MASS TORT n Asbestos N Tobacco 0 Toxic Tort - DES ® Toxic Tort - Implant REAL PROPERTY MISCELLANEOUS 0 Toxic Waste Other: 0 Ejectment 0 Common Law /Statutory Arbitration B 1J Eminent Domain /Condemnation xJ Declaratory Judgment Ground Rent n Mandamus J Landlord/Tenant Dispute 0 Non - Domestic Relations 0 Mortgage Foreclosure: Residential Restraining Order PROFESSIONAL LIABLITY ©C Mortgage Foreclosure: Commercial 0 Quo Warranto Q Dental El Partition 0 Replevin Legal f7 Quiet Title -- Other: -i Medical Other: Ci Other Professional: Updated 1 /1/2011 BY: STEPHEN A. SCHEUERLE, ESQUIRE SSCHEUERLEkDVERDICT.COM * 1 a t7A r 2 7 P 3 7 Identification No.: 38558 l , f �t? 1 CHARLES L. McNABB, ESQUIRE FdFd L ,� ' �7lJ CMCNABBkDVERDICT.COM L A NNA Identification No.: 60494 HOHN & SCHEUERLE Suite 3242 1700 Market Street Philadelphia, PA 19103 215- 496 -9995 Attorneys for Plaintiff, 215- 496 -9997 (Fax) Motorist Mutual Insurance Company Our File #3500 -88 MOTORISTS MUTUAL INSURANCE COMPANY IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY Plaintiff, PENNSYLVANIA V. . SCOTT FARRELL, SR., and 0 V KATHLEEN FARRELL and No. SCOTT FARRELL, JR. and E. G., a minor, by J. G. and S. G., her parents and natural guardians. Defendants. ACTION FOR DECLARATORY JUDGMENT NOW COMES Plaintiff, Motorists Mutual Insurance Company, by and through its undersigned counsel of Holm & Scheuerle, and files this Complaint for Declaratory Judgment averring the following: 1. Plaintiff, Motorists Mutual Insurance Company [ "Motorists "], is an insurance company with a principal place of business located at 471 East Broad Street, Columbus, Ohio. 04 )63��� 2. Defendants, Scott Farrell, Sr., Kathleen Farrell and Scott Farrell, Jr. ( "Farrell Defendants "), all reside at 5 Hilltop Circle, Carlisle, Cumberland County, Pennsylvania. 3. Minor Defendant, E. G., and Defendants, J. G.. and S., G., her parents, reside in Cumberland County, Pennsylvania. 4. Motorists files this Action seeking declaratory judgment pursuant to Pa.R.C.P. 1601. 5. On March 4, 2013, Defendant, E.G., a minor, by J. G. and S. G., her parents and natural guardians, filed suit in the Court of Common Pleas of Cumberland County alleging that Defendant, Scott Farrell, Jr., sexually assaulted her on various dates from January 2001 through late summer 2011. (Attached hereto as Exhibit "A" is a true and correct copy of said Complaint as amended). 6. The Complaint alleges that Scott Farrell, Jr., "psychologically manipulated, exploited, groomed, and ultimately sexually assaulted E.G. at his parents' house, as well as other locations. At all times relevant hereto the Perpetrator was sixteen years old and E.G. was twelve years old." (See Exhibit "A," par. 15). 7. Said Complaint also alleges that Scott Farrell, Jr.'s parents, Defendants, Scott Farrell, Sr. and Kathleen Farrell negligently: failed to adequately supervise their son; failed to warn Minor Defendant or her parents of the risk he posed, and; permitted the harmful sexual acts to occur. (See Exhibit "A," Count I). 8. This declaratory judgment action has been filed for the purpose of determining a question and actual controversy regarding whether or not Motorists has a duty to defend and indemnify the Farrell Defendants in the underlying litigation. 9. From January 15, 2011 to January 15, 2012, Motorists provided Homeowners Insurance to the Farrell Defendants under policy #0391 -71- 698102 -70. (Attached hereto as Exhibit `B" is a true and correct copy of the Declarations Sheet and Policy). 10. Said policy is governed by the laws of the Commonwealth of Pennsylvania with respect to the incident at issue. 11. Motorists is currently providing a defense to the Farrell Defendant subject to a reservation of rights. (Attached hereto as Exhibit "C" is a true and correct copy of the reservation of rights letter issued to Defendants on March 26, 2013). 12. The Motorist policy excludes coverage for the following: 1. Coverage E - Personal liability ... (does) not apply to "bodily injury"... a. Which is expected or intended by the "insured ". (Prior to the incident at issue, the "Special Provisions - Pennsylvania Endorsement" [HO 7137 (8 -10)] amended this provision to exclude that "which is expected or intended by one or more `insureds. The policy also excludes coverage for bodily injury: k. Arising out of sexual molestation, corporal punishment or physical or mental abuse... 13. Motorists seeks a declaration from the Court that it is not obligated to defend and indemnify the Farrell Defendants with respect to any of the claims set forth in Cumberland County action filed by Defendant, E. G. and her parents. WHEREFORE, Plaintiff, Motorists Mutual Insurance Company, requests judgment in its favor and a declaration that Plaintiff is not obligated to defend or indemnify Defendants, Scott Farrell, Jr., Scott Farrell, Sr. and Kathleen Farrell under Motorist Homeowner's Policy, #0391- 71- 698102 -70, against the claims set forth in the Civil Action Complaint filed by Defendant, E. G., a Minor, by J. G. and S. G., her parents and natural guardians, in the Cumberland County Court of Common Pleas. HOHN & Y�GWX'6LE CXKRLES CNABB, ESQUIRE STEPHEN A. SCHEUERLE, ESQUIRE Attorneys for Plaintiff, Motorists Mutual Insurance Company s 3500 -88 VERIFICATION The averments or denials of fact contained in the foregoing are true and based upon the signer's knowledge or information and belief. If the foregoing contains averments which are inconsistent in fact, signer has been unable, after reasonable investigation, to ascertain which of the inconsistent averments are true, but signer has knowledge or information sufficient to form a belief that one of them is true. This Verification is made subject to the penalties of 18 Pa. C.S.A. §4904, relating to unsworn falsification to authorities. HOHN & SCHEUERLE BY: CHA ES L. McNABB, ESQUIRE Attorney for Plaintiff, Motorists Mutual Insurance Company DATE: tl Case 1:13-cv-02724-YK Document 1-2 Filed 11/06/1.3 Page 1 of 13 Benjamin D. Andreozzi Attorney ID 9892711 'Heather E. Verchick Attorney LD 42 013 i0 ANDREOZZI. & ASSOCIATES, P.C.. 2 15 Pine St., , Ste. 200 Harrisburg PA 1 7101 717-525-9124 Beri@midstAdaw.corn Attorney for Plaintiff E.G a mi nor. by JI.G. and S.G. her parents and natural guardians, I.N THF, COURT OF CO-MMON PLEAS CUMBERLAND COUNTY, PENNSYLVAN Plaintiffs vs. No. 13-1197 Civil SCOTT FARRELL SR., and j CIVIL ACTION - L,AW KA FARRE LL and SCOT'17 FARRELL, JR. Defendants NOTICE TO DEFEND AND CLAIM RIGHTS You have been sued An court. I,(:'v o u wish to defend against the claims set forth in the ' following pages, you must, take action within twenty (20) days after this complaint and noti C� . ice are served, by entering a - written appearance personally or by attorney and filing in writing with the court your defenses or objections to the claims set forth against you. You are warned that i fail to do so the c, may proceed without you and ajudgment niay be entered against you by th.-I court without furflier notice for any money claimed in the complaint or for any other claim or relief requested by the plaintiff You .may lose money or, I)ropert) or other rights important to you. YOU S11OULD TAKE ITIIS PAPER. TO YOUR LAWYER AT ONCE?. fl YOU DO NOT HAVE; A 11AWYER, ' TO OR TELEPHONE THE OFFICT SET FORTH BELOW. THIS OFFICE CANPROVIDE YOU WITH INFORMA A LAWYER. IF YOU CANNOT " AFFORJ) TO HIRE A LAWYER, THIS OFFICF, IMA�' By Ajil.,E TO I YOU WITH INFORMATION ABOU'l" AG]"INC113s THAT MAY 0T'FI LEGAL SERVICES'I'O FLIGTMLI.�', PF,.RSONS AT REDUCE FEI�', OR NO EXHIBIT A Case 1:13 -cv- 02724 -YK Document 1 -2 Piled 11/06/13 Page 2 of 13 Benjamin D. Andreozri Attorney 1D,1892 Heather F. verchick Attorney 1D 7201 ;10 ANURFOZZ1 & ASSOCIATES, P.C. 215 Pine St., Ste. 200 1-iarrisburg, PA .17101 717 - 525 -9124 Ben @midstatelaw.com Attorney for Plaintiff E.Ci., a zrlirior, b J.G. and S.G. her parents and. natural guardians, IN THE COUR OF COMMON I'LE,AS CUMBERLAND COUNTY, PENNSYLVANIA Plaintiffs vs. No. 13 -1197 Civil SCOTT FARRE LL, SR., and CIV.I..L ACTION - LAW KA I'I- 1 F AI;Rl:,LL and SCOTT FARREL.L, JR. Defendants AMENDE D COMPLAINT AND NOW come the Plaintiffs, through their counsel, Benjamin 1). Andreozzi,1 and bring this Amended Complaint against the Defendtults and aver the fallowing; The Parties 1. Plaintiff, 1 is a fourteen year old. resident of Cumberland County, Pennsylv,ma. J.CI.. and S.G. are her adult parents and natural guardians. Initials are used to prevent public disclosure of her identity since this case involves child sexual abuse. Case 1:13 -cv- 02724 -YK Document 1 -2 Filed 11/06/13 Page 3 of 13 2. Defendant Scott Darrell, Sr. is an adult individual who resides at 5 Hilltop Circle, Carlisle, PA 17015. 3. Defendant Kathleen Fauell is an adult individual who resides at 5 Hi.11to p Circle, Carlisle, PA 17015. 4. Defendant Scott .Darrell, Jr., is in adult individual who at all times relevant, resides' at 5 Hi.l Itop Circle, P.A. 17015, and to all belief and knowledge still resides at that address. The Abuse 5. As set forth in ;greater detail below, F.G. was sexually assaulted by Scott . arrell, Jr., ( "Perpetrator ") who is the eighteen year old son of Defendants Scott Farrell, Sr. ( "Perpetrator's father ") and K.atlileen Darrell ( "Perpetrator's mother). 6. '1he Perpetrator met E.G. in late January or early February of 2011. when E.E_i. was only t years old and the .Perpetrator was sixteen years old. 7. At all tines relevant, E.G. arld the Perpetrator liuesl in the same neighborhood. fl. In mid -April of 2011, E.G.'s mother mentioned to the Perpetrator's father that the Perpetrator was showing an intense interest in her daughter which she thought was out of the ordinary. 9. She also advised the Perpetrator's father that the relationship must stay a friendship because it would be "illegal" for it to advance beyond a friendship and that he should closely monitor the relationship. Case 1:13 -cv- 02724 -YK Document 1 -2 Filed 11/06/13 Page 4 of 13 10. The Perpetrator's father. told E.(.7.'s mother she had nothing to worry about because the Perpetrator was a "good boy" and lie merely acted young for his age and gravitated towards friendships with. younger kids. H. after this conversation, l .G.'s mother discovered information which led her To believe that the Perpetrator was romantically pursuing E.G. She called the Perpetrator's father and informed him of her discovery and instructed hire the .relationship needed to end and that the .Perpetrator was ,not welcome at .her house. 12. It is believed and therefore averred that in. late .March, or the first w ofApril 2011, the Perpetrators' parents became aware that the Perpetrator was being accused of sexually assaulting an eleven year old girl in an unrelated incident, and that the police were i.nvestagatini the matter. ? 3. At no time did the Perpetrators' parents give any indication. to H.G.'s parents or F.G. that the Perpetrator had been accused of sexually assaulting a young girl. 4. In Cast, despite knowledge of the allegations of sexual abuse of another young girl, and concerned communications from E.G.'s mother, the Perpetrator's parents continued to allow F.G. and the. Perpetrator to spend time together alone. and unsupervised in their house. 15. On multiple occasions in the .late spring and sum.rner of 201 l., the perpetrator psychologically manipulated, exploited, groomed, and ultimately sexually assaulted E.G. in his parents' house, as well as other locations. At all times relevant hereto the 1 cipetrator was sixteen years old and r .C:,.. w,--,.s twelve years old. Case 1:13 -cv- 02724 -YK Document 1 -2 Filed 11/06/13 Page 5 of 13 15. Although :the Perpetrator did ,not intend to cause halm to E.G., his actions .resuited in physical injuries, as well as severe emotional distress and psychological injuries. COUNT T E.G. vs. Scott laarrell, Sr. and Kathleen Farrell NEGUGENCI? 17. The allegations set forth in the preceding paragraphs are :i.ncorporated by reference as it set forth at length. 18. At all thues relevant, .Defendants Scott Farrell, Sr. and Kathleen Farrell knew that Defendant Scott Farrell, Jr. was accused of having prior inappropriate sexual contact with young girls, had prior inappropriate sexual contact with young girls, and exhibited behaviors which demonstrated that he should not be left alone with a twelve year old girl. 19. At all times relevant, Defendants Scott Farrell, Sr. and. Kathleen Farrell knew, permitted, eneouraged, and facilitated .Defendant Scott Farrell, Jr. to have contact with Minor- Plaintiff, including but not limited to, unsupervised contact on their property. 20. As the parents of a sixteen year old boy, Defendants Scott Farrell, Sr. and Kathleen Farrell had a special relationship with Defendant Stott Farrell, Jr., and they were generally responsible for raising hint and setting rules and boundaries for his conduct, particularly within their borne. 21. De:lendants Scott Farrell, Sr. and Kathleen Farrell owed a duty of reasonable cu to Minor - Plaintiff' as a result of their special relationship with Defendant Scott Fairel.l, Jr. and as owners and possessors of their, home, upon which Minor - Plaintiff was an invitee. Case 1:13 -cv- 02724 -YK Document 1 -2 Filed 11/06/13 Page 6 of 13 22. Defendants Scott Farrell, Sr. and Kathleen Far.rel.l , .were negligent, grossly negligent, and .reckless as follows: a. failing to supervise or f ailing; to adequately supervise Defendant Scott Farrell, Jr. with wh.orn they had a special relationship; b. failing to warn the Minor - Plaintiff or her parents of the risk of harm posed by Defendant Scott Ferre.l.l, Jr.; C. permitting the harmful acts of Defendant Scott Farrell, Jr. to take place and/or continue: d. failing to make reasonably safe tile: property which they possessed and/or controlled; e. violation of duties unposed under Pennsylvania l.aw,. Section 31411.(3) (4) of the Restatement (Second) of Torts because Defendants Scott Darrell. Sr. and Kathleen Farrell, were possessors of" land who held it open to the, Public, .i.ncludingMi.nor- Plaintiff and, as such owed a duty of reasonable protection to Minor-Plaintiff which they violated by failing to make safe. the property or provide warnings to Minor- Plaintiff and /or Minor- Plaintiffs parents after having knowledge of the dangerous propensities and tendencies of Defendant Scott Farrell, Jr.; f. violation of dutics imposed under ..Pennsylvania law, Section 11 of the Restatement (Second) of Torts because Defendants Scott Farrell., Sr. and Case 1:13 -cv- 02724 -YK Document 1 -2 Filed 11/06/13 Page 7 of 13 Kathleer.:l arreli far -e false infarnrati.nn to J.G. and S.C.r. regarding the nature of their minor son's relationship will, T .G., and J.G. and. S.G. relied on this information and E.G. was harmed as a result of this .reliance. g. violation of duties unposed under Pennsylvania law, Section 31.5(a) & (b) of the Restatement (Second) of Torts; h. violation of duties imposed under. Pe.nnsylvarua. law Section > 16 of the Restatement (Second) of Torts because Defendants Scott Darrell, Sr. and Kathleen. barrel] are the parents of Scott Darrell, Jr. and they were tinder a duty to exerci.se.reasotlable care so as to prevent their m:irtor son front intentionally harmingMinor- Plaintiff since they knew or had reason to know that thev had the ability to control their minor son, and they knew or should know of the necessity and opportunity for exercising such control; i. Vialation of duties imposed under Pennsylvania law. Section 318 of the. Restatement (Second) of `forts because Defendants Scott Darrell. Sr. wid Kathleen T.arreh were possessors of land who permitted a third person, Defendant Scott barrel], Jr., to conduct an activity on the land and failed to exercise reasonable care to prevent h.i.m .from creating an unreasonable risk of bodily harm to the Minor - Plaintiff when these defendants knew or should have known. of their ability to control their nti.nor son and knew or the need and opportunity to exercise control over him; Case 1:13 -cv- 02724 -YK Document 1 -2 Filed 11/06/13 Page 8 of 13 J- violation of duties imposed udder Pennsylvania law, Section ;1 ci o f thy. Restatement (Second) Of Torts because .Defendants Scott: Darrell, Sr. and Kathleen "Farrell had charge of Defendant Scott. Farrell, Jr. and knew or should have known that lie was .Likely to cause bodily harm to others, and specifically to Minor - .Plaintiff, and did not exercise reasonable care to control their minor son from harming Minor - Plaintiff; k, violation of duties imposed under Pennsylvania law Section 320 of the Restatement (Second) of "forts because Defeendants Scott Farrell Sr. and Kathleen Darrell voluntarily took custody of Minor - Plaintiff at their residence and subjected. her to association with theiz miner soi, and knew or had reason to know that they had the ability to control the conduct of their minor son and knew or should have kiaown the necessity and Opportunity for exerci such control. I. violation of duties irnposed under Pennsylvania law, Section 524A of the Restatement (Second) of Torts by hay.inc increased the risk of harm of injury to Plaintiff after having assumed the obligation to provide services to all Plaintiffs to care for and watch Minor-Plaintiff while she was at their residence, which was necessary.for the protection of. vl11101-- Plai.zitiff. M. allowing the Mirror- Plaintiff to be in the company of Defendaixt Scott Farrell, Jr., when they knew or should have .known and foreseen that based on his propensities towards young girls that he was a clanger and threat to the Minor-Plaintiff and was like]) to cause her harin; Case 1:13 -cv- 02724 -YK Document 1 -2 Filed 11/06/13 Page 9 of 13 D'. failing to take any precautions whatsoever to give protection acrd safety to Minor - Plaintiff from the dan,,erous propensities of Defendant Scott Farrell, Jr., of which they had notice and knowledge, actual or constructive: o. failing to warn Minor - Plaintiff that activity engaged in by Defendant Scott Farrell, Jr., would be of a harniful nature to ;Ulinor- Plaintiff and have traun - tatic effects on her in the future; P. pernlitting Minor - Plaintiff to enter or remain on their property when they knew or should have known that while l inor- Plaintiff renmincd on the property she was at risk to be har7ned by Defendant Scott Farrell, Jr.; q. negligent supervision of the property; L violation. of duties imposed under Pennsylvania law, Section 141 and 341 A of the Restatement (Second) of Tarts; S. violation of duties imposed under Pennsylvania law, Section. 448 of the Restatement (Second) of Torts; t. failing to take reasonable and necessary steps to rescue Minor- Plaintiff after placing her in a perilous position; it. failing to exercise reasonable care to prevent further .harm after rendering Minor - Plaintiff in danger of further harm.; Case 1:13 -cv- 02724 -YK Document 1 -2 Filed 11/06/13 Page 10 of 13 v. failing to take reasonable and necessary steps to give aid or assistance. to Minor - Plaintiff after rendering her in danger of further harm; W. failing to take reasonable and necessary steps to prevent and delay in the appropriate care of Minor - Plaintiff; X. violation of duties set:forth in the Restatement (Second) of Torts, Section _)21. 23. As a direct and proximate cause of the conduct of Defendants Scott 17arrell, Sr., and Kathleen Farrell, described herein, M.i.nor- Plaintiff suffered serious physical acrd emotional injuries. WI.MUZEFORE, Plaintiffs claim of the Defendants. jointly and severally, damages in excess of the mandatory arbitration limits. in addition to ether fees, costs, and interest as permitted by the lativ. CO It. E.C. v. Scott Farrefl, Jr. NEGLIGENCE 24. The allegations set :forth in the preceding paragraphs are, incorporated by reference as if set forth at length. 2i. D efr;.,idarit Scott.T a.rrell 7r., owed Minter- Plaintiffa duty which required that he not physically molest. or sexually assault her. Case 1:13 -cv- 02724 -YK Document 1 -2 Filed 11/06/13 Page 11 of 13 26. Defendant Scott Farrell, Jr., inistAenly concluded the Minor - Plaintiff consented to sexual contact. 27. At all times relevant, Minor - Plaintiff did not consent to sexual contact with Scott Farrell, Jr. 28. ,A reasonable person in Def'cndant Scott I °arrell, Jr..'s position should .leave realized that Minor- .Plainntiff. a twelve: year old girl, did not consent to sexual touching. WHEREFORE, Plaintiffis claim of the Deftndan:ts, jointly and severally, daTnages in excess of the mandatory arbitration limits, in addition to other fees, costs, and interest as permitted by the law. Respectfully submitted, Date: _...__ ... ._._._._.. 13 y :._. -.._ ......__.....__. "� Benjamin 1 ?. Andreozzi PA. # 8927:1 A.ndmozzi. & Associates, P.C. 215 Pine Street, Suite. 200 Harrisburg,1 17:1.01 p: 717.525.91.42 f: 717.525.9143 Counsel for Plaintiffs Case 1:13 -cv- 02724 -YK Document 1 -2 Filed 11/06/13 Page 12 of 13 VERIFICATION .1, Benjamin D. Andreozzi, Esquire, Attorney for Plai.ntiz:fs E.G., J.G. anr: S.C3., verify that the statements made in the foregoing Amended Complaint are true and correct to the lest of my knowledge, MIdrrnation anci bel:icf. I und-erstand that :false staiern.ents heroin are rn ode subject to the Penalties of 18 Pa. C.S. §4904, relating to unsworn falsif.cation to authorities. Date: -' ' / j ANT)R:EQLI1 & ASSOCIATES, P.C. i By: 1:3enjamin D. Andr coz Attorney Ill :f, #89271 215 Pine St., Ste. 200 Harrisburg, PA '171.01 (71.7) 525-9124 Counsel for .Petitioner Case 1:13 -cv- 02724 -YK Document 1 -2 Filed 11/06/13 Page 13 of 13 CERTIFICATE OF SERVICE 1, Heather E. V::•rcliick, Esquire, hereby state that I have this day caused. to be served a true and correct copy of' the Amended Complaint to all counsel of interest at the address belov,• named, by U.S. Mai], .F'irst- Class, postage prepaid: Stephen J. Summers Stunners, M:c.Donnell., Hudock Gluth.rie &-- Skeel. P.C. 707 Grant Street Suite 2400 Gulf Tower Pittsburgh, PA 15219 Dated: / lleatller E. Verch.ick, Esq Counsel for E'lairntiffs Vase 1: -cv- - Fhe undersigned. certifiers that this is a true and correct copy of the coverages in effect for pol i cy number 0)91-71.-698102-70 on Apri 1 1, 2011 by Motorists Mutual Insurance Company to Scott Farrell & Kathleen Darrell. i Betty Graharn CPCU, CIC, CRM, .PLCS, CISR, API, A.IS, CPIA, MSC, ACTS, CPD Assistant Vice President Personal Lines Underwriting Personal I..,ines Division I The Motorists Insurance Group,You ki law us. EXHIBIT Case 1:13 -cv- 02724 -YK Document 1 -3 Filed 11/06/13 Page 2 of 41 Declarations PAGE 1 POLICY NUMBER 71 .698102 -70 h o A cowners EFFECTIVE DATE 01 / 15 /1 I ISSUE 10 (01/17/11) FILE COPY NAMED INSURED This Declarations voids and supersedes all prior issues, and together with the Corms listed in the Schedule of Forms and Endorsements complete the above numbered policy. SCOTT FARRELL POLICY PERIOD KATHLEEN FARRELL PO BOX 1042 From ol/15/ii to 01/15/12 CARLISLE PA 17013.6042 This policy period begins and ends at 12:01 A.M. Standard Time at the residence premises as stated in the policy. Insured Residence Premises Description of Dwellin 5 HILLTOP CIRCLE Year Built 1972 CARLISLE PA 17013 Construction ALUM /PLAS11C OVER FRAME Number of Families oo1 COuniy: CUMBERLAND Coves e Description and Limits of Liabilit Section I Coverages Limit Section it Coverages Limit A. Dwelling a 210.700 E. Personal Liability s Soo.000 Each Occurrence: B. Other Structures 21.070 F. Medical Payments to Others 2.,000 Each Person C. Personal Property 151,690 D. Loss of Use 43,340 Section i Deductible 250 Per Occurrence Premium Summary (This is not a billing) Activity BASIC POL'IC'Y PREMIUM 474,00 REVISION OPTIONAL COVERAGE PREMIUM FROM PAGE 2 57.00 TOTAL, POLICY PREMIUM 531.00 ACCOUNT NUMBER: AAAG884900 HO 7001 01 95 Motorists Mutual BACK MOUNTAIN PROF INS k, insurance Company 59 1/2 MAIN ST 471 East Broad Street, "OlUrnbUS, Ohio 43215 -3861 LULERNE PA 18709 (570)7143100 Case 1:13 -cv- 02724 -YK Document 1 -3 Filed 11/06/13 Page 3 of 41 POLICY NUMBER PAGE 2 71.698102- -70 Schedule of Forms and Endorsements Additional Number Date Description Premium HO 0003 04-91 HOMEOWNERS 3 SPECIAL. FORM HO 0496 04 -91 HOME DAY CARE BUSINESS AMENDATORY ENDORSEMENT HO 7002 06 -06 POLICY COVERAGE AMENDMENTS AND MUTUAL PROVISIONS HO 7050 09 -04 IDENTITY FRAUD EXPENSE COVERAGE HO 7125 01-•95 WATERBED COVERAGE HO 7137 08 -10 SPECIAL PROVISIONS - PENNSYLVANIA IL 0910 01 -81 PENNSYLVANIA NOTICE HO 7140 12-05 PREFERRED HOMEOWNERS ENDORSEMENT DISCOUNT HO 7416 04-02 PREMISES ALARM OR FIRE PROTECTION SYSTEM INCLUDED HO 7363 01-95 PERSONAL PROPERTY REPLACEMENT COST `;57.00 HO 7123 01-95 INFLATION PRO'rECI'ION ENDORSEMENT Mortgagee or Lienholder Information Mortgagee: 01 Billed: No Mortgagee: Billed: WELLS FARGO BANK NA ,1591 ISAOA PO BOX 100591 FLORENCE SC 29502.0591 Loan No: 4556005 Loan No: Description of Rating Elements (Appea(s on agent copy only) Protection Class 04 Fire Hydrant within oo5oo Feet Premium Group 13 Fire Department within 002 Miles 'territory 3:3 Responding Fire Department CARLISLE Solution Level 0 This Page Completes Your Declarations F t j i P r 6}' Case 1:13 -cv- 02724 -YK Document 1 -3 Filed 11/06/13 Page 4 of 41 POLICY NUMBER Homeowners 3 H® 0003 (04 -91) Special Fora AGREEMENT We will provide the insurance described in this policy in return for the premium and compliance with all applicable provisions of th pol DEFINITIONS In this policy, "you" and "your" refer to the "named in- (1) Which is shown in the Declarations; or sured" shown in the Declarations and the spouse if a resi- (2) Which is acquired by you during the policy period dent of the same household. "We," "us" and "our" refer for your use as a residence; to the Company providing this insurance. In addition, cer tain words and phrases are defined as follows: c. Any premises used by you in connection with a premises in 4.a. and 4.1a. above; 1. "Bodily injury" means bodily harm, sickness or disease, including required care, loss of services and death that d. Any part of a premises: results. (1) Not owned by an "insured "; and 2. "Business" includes trade, profession or occupation. (2) Where an "insured" is temporarily residing; 3. "Insured" means you and residents of your household e. Vacant land, other than farm land, owned by or who are: rented to an "insured a. Your relatives; cr f. Land owned by or rented to an "insured" on which b. Other persons under the age of 21 and in the care a one or two family dwelling is being built as a re- ef any person named above. sidence for an "insured "; Under Section ll, "insured" also means: g. Individual or family cemetery plots or burial vaults c. With respect to animals or watercraft to which this of an "insured "; or policy applies, any person or organization legally re- h. Any part of a premises occasionally rented to an sponsible for these animals or watercraft which are "insured" for other than "business" use. owned by you or any person included in 3.a. or 3.b. 5. "Occurrence" means an accident, including continuous above. A person or organization using or having or repeated exposure to substantially the same general custody of these animals or watercraft in the course harmful conditions, which results, during the poiicy pe- of any "business" or without consent of the owner riod, in: is not an "insured a. "Bodily injury "; or d. With respect to any vehicle to which this policy ap- b. "Property damage." plies: 6. "Property damage" means physical injury to, destruction (1) Persons while engaged in your employ or that of, or loss of use of tangible property, of any person included in 3.a. or 3.b, above; or 7, "Residence employee" means: (2) Other persons using the vehicle on an "insured location" with your consent. a. An employee of an "insured" whose duties are re- lated to the maintenance or use of the "residence 4. "Insured location" means: premises," including household or darriestic services; a. The "residence premises or b. The part of other premises, other structures and b. One who performs similar duties elsewhere not re- grounds Used by you as a residence and. lated to the "business" of an "insured." HO 0003 (04 -91) Page 1 of 18 Case 1:13 -cv- 02724 -YK Document 1 -3 Filed 11/06/13 Page 5 of 41 POLICY NUMBER 8. "Residence premises" means: where you reside and which is shown as the "residence a. The one family dwelling, other structures, and premises" in the Declarations. grounds; or "Residence premises" also means a two family dwelling b- That part of any other building; where you reside in at least one of the family units and which is shown as the "residence premises" in the Declarations. SECTION I - PROPERTY COVERAGES COVERAGE A - Dwelling Our limit of liability for personal property usually located at We cover: an "insured's" residence, other than the "residence prem- ises," is 10% of the limit of liability for Coverage C, or 1. The dwelling on the "residence premises" shown in the $1000, whichever is greater. Personal property in a newly Declarations, including structures attached to the dwell- acquired principal residence is not subject to this limitation ing; and for the 30 days from the time you begin to move the pro - 2. Materials and supplies located on or next to the "resi- perty there. dence premises" used to construct, alter or repair the Special Limits of Liability. These limits do not increase the dwelling or other structures on the "residence prem- Coverage C limit of liability. The special limit for each ises." numbered category below is the total limit for each loss for This coverage does not apply to land, including land on all property in that category. which the dwelling is located. 1. $200 on money, bank notes, bullion, gold other than COVERAGE B - Other Structures goidware, silver other than silverware, platinum, coins We cover other structures on the "residence premises" set and medals. apart from the dwelling by clear space. This includes 2. $1000 on securities, accounts, deeds, evidences of debt, structures connected to the dwelling by only a fence, utility letters of credit, notes other than bank notes, manu- line, or similar connection. scripts, personal records, passports, tickets and stamps. This coverage does not apply to land, including land on This dollar limit applies to these categories regardless which the other structures are located. of the medium (such as paper or computer software) We do not cover other structures; on which the material exists. 1. Used in whole or in part for "business "; or This limit includes the cost to research, replace or re- 2. Rented or held for rental to any person not a tenant of store the information from the lost or damaged material. the dwelling, unless used solely as a private garage. 3. $1000 on watercraft, including their trailers, furnishings, equipment and outboard engines or motors. The limit of liability for this coverage will not be more than 4. $1000 on trailers not used with watercraft. 10% of the limit of liability that applies to Coverage A. Use of this coverage does not reduce the Coverage A limit of 5. $1000 for loss by theft of jewelry, watches, furs, pre - liability. cious and semi- precious stones. COVERAGE C - Personal Property 6. $2000 for loss by theft of firearms, We cover personal property owned or used by an "insured" 7. $2500 for loss by theft of silverware, silver - plated ware, while it is anywhere in the world. At your request, we will goldware, gold - plated ware and pewterware. This in- cover personal property owned by: cludes flatware, hollowware, tea sets, trays and trophies 1. Others while the property is on the part of the "resi- made of or including silver, gold or pewter. dence premises" occupied by an "insured "; 8, $2500 on property, on the "residence premises," used 2. A guest or a "residence employee," while the property at any time or in any manner for any "business" pur- is in any residence occupied by an "insured." pose. HO 0003 (04 -91) Page 2 of 18 Case 1:13 -cv- 02724 -YK Document 1 -3 Filed 11/06/13 Page 6 of 41 POLICY NUMBER 9. $250 on property, away from the "residence premises," The exclusion of property described in 3.a. and used at any time or in any manner for any "business" 3.b. above applies only while the property is in purpose. However, this limit does not apply to loss to or upon the vehicle or conveyance. adaptable electronic apparatus as described in Special We do cover vehicles or conveyances not subject to Limits 10. and 11. below, motor vehicle registration which are: 10. $1000 for loss to electronic apparatus, while in or upon a. Used to service an "insured's" residence; or a motor vehicle or other motorized land conveyance, if b. Designed for assisting the handicapped; the electronic apparatus is equipped to be operated by power from the electrical system of the vehicle or con- 4. Aircraft and parts, Aircraft means any contrivance used veyance while retaining its capability of being operated or designed for flight, except mode+ or hobby aircraft by other sources of power. Electronic apparatus in- not used or designed to carry people or cargo; cludes: 5. Property of roomers, boarders and other tenants, except a. Accessories or antennas; or property of roomers and boarders related to an "in- b. Tapes, wires, records, discs or other media; sured "; for use with any electronic apparatus. 6. Property in an apartment regularly rented or held for rental to others by an "insured," except as provided in 11. $1000 for loss to electronic apparatus, while not in or Additional Coverages 10; upon a motor vehicle or other motorized land convey- 7 property rented or held for rental to others off the "re ance, if the electronic apparatus: sidence premises "; a. Is equipped to be operated by power from the elec- g "Business" data, including such data stored in: trical system of. the vehicle or conveyance while re- taining its capability of being operated by other a, Books of account, drawings or other paper records; sources of power; or b. is away from the "residence premises "; and b. Electronic data processing tapes, wires, records, c. Is used at any time or in any manner for any "bu- discs or other software media. siness" purpose. However, we do cover the cost of blank recording or storage media, and of pre - recorded computer programs Electronic apparatus includes: available on the retail market; or a. Accessories or antennas; or 9. Credit cards or fund transfer cards except as provided b. Tapes, wires, records, discs or other media; in Additional Coverages 6. for use with any electronic apparatus. COVERAGE D - Loss of Use Property Not Covered. We do not cover: The limit of liability for Coverage D is the total limit for all 1. Articles separately described and specifically insured in the coverages that follow. this or other insurance; 1. If a loss covered under this Section makes that part of 2. Animals, birds or fish; the "residence premises" where you reside not fit to live in, we cover, at your choice, either of the following. 3. Motor vehicles or all other motorized land conveyances. However, if the "residence premises" is not your princi- This includes: pal place of residence, we will not provide the option a. Their equipment and accessories; or under paragraph b. below. b. Electronic apparatus that is designed to be operated a. Additional Living Expense, meaning any necessary solely by use of the power from the electrical system increase in living expenses incurred by you so that of motor vehicles or all other motorized land con- your household can maintain its normal standard of veyances. Electronic apparatus includes: living; or (1) Accessories or antennas; or b. Fair Rental Value, meaning the fair rental value of that part of the "residence premises" where you re- (2) Tapes, wires, records, discs or other media; side less any expenses that do not continue while for use with any electronic apparatus, the premises is not fit to live in. HO 0003 (04 -91) Page 3 of 18 Case 1:13 -cv- 02724 -YK Document 1 -3 Filed 11/06/13 Page 7 of 41 POLICY NUMBER Payment under a. or b. will be for the shortest time re- b. Your tree(s) felled by the peril of Weight of Ice, quired to repair or replace the damage or, if you per- Snow or Sleet; or manenity relocate, the shortest time required for your c, A neighbor's tree(s) felled by a Peril Insured Against household to settle elsewhere. under Coverage C; 2.. If a loss covered under this Section makes that part of provided the tree(s) damages a covered structure. The the "residence premises" rented to others or held for $500 limit is the most we will pay in any one loss re- rental by you not fit to live in, we cover the: gardless of the number of fallen trees. Fair Rental Value, meaning the fair rental value 2, Reasonable Repairs. In the event that covered property of that part of the "residence premises" rented is damaged by an applicable Peril Insured Against, we to others or held for rental by you less any ex- will pay the reasonable cost incurred by you for neces- penses that do not continue while the premises sary measures taken solely to protect against further is not fit to live in. damage. If the measures taken involve repair to other Payment will be for the shortest time required to damaged property, we will pay for those measures only repair or replace that par of the premises rented or it that property is covered under this policy and the held for rental. damage to that property is caused by an applicable Peril 3. If a civil authority prohibits you from use of the "resi- Insured Against. dence premises" as a result of direct damage to neigh- This coverage: boring premises by a Peril Insured Against in this policy, a. Does not increase the limit of liability that applies to we cover the Additional Living Expense and Fair Rental the covered property; Value loss as provided under 1. and 2. above for no b. Does not relieve you of your duties, in case of a loss more than two weeks. to covered property, as set forth in SECTION I - The periods of time under 1., 2. and 3. above are not limited CONDITION 2.d. by expiration of this policy. 3. Trees, Shrubs and Other Plants. We cover trees, We do not cover loss or expense due to cancellation of a shrubs, plants or lawns, on the "residence premises," lease or agreement. for loss caused by the following Perils Insured Against' ADDITIONAL COVERGES Fire or lightning, Explosion, Riot or civil commotion, Aircraft, Vehicles not owned or operated by a resident 1. Debris Removal. We will pay your reasonable expense of the "residence premises," Vandalism or malicious for the removal of: mischief or Theft. a. Debris of covered property if a Peril Insured Against We will pay up to 5% of the limit of liability that applies that applies to the damaged property causes the to the dwelling, for all trees, shrubs, plants or lawns. loss; or No more than $500 of this limit will be available for any b. Ash, dust or particles from a volcanic eruption that one tree, shrub or plant. We do not cover property has caused direct loss to a building or property grown for "business" purposes. contained in a building. This coverage is additional insurance. This expense is included in the limit of liability that ap- 4. Fire Department Service Charge. We will pay up to plies to the damaged property. If the amount to be paid $500 for your liability assumed by contract or agreement for the actual damage to the property plus the debris for fire department charges incurred when the fire de- removal expense is more than the limit of liability for the partment is called to save or protect covered property damaged property, an additional 5% of that limit of li- from a Peril Insured Against. We do not cover fire de- ability is available for debris removal expense. partment service charges if the property is located within We will also pay your reasonable expense, up to $500, the limits of the city, municipality or protection district for the removal from the "residence premises" of: furnishing the fire department response. a. Your tree(s) felled by the peril of Windstorm or Hail; This coverage is additional insurance. No deductible or applies to this coverage. HO 0003 (04 -91) Page 4 of 18 Case 1:13 -cv- 02724 -YK Document 1 -3 Filed 11/06/13 Page 8 of 41 POLICY NUMBER 5. Property Removed. We insure covered property against c. We have the option to defend at our expense an direct loss from any cause while being removed from a "insured" or an "insured's" bank against any suit for premises endangered by a Peril Insured Against and for the enforcement of payment under the Forgery cov- no more than 30 days while removed. This coverage erage. does not change the limit of liability that applies to the 7, Loss Assessment. We will pay up to $1000 for your property being removed, share of loss assessment charged during the policype­ 6. Credit Card, Fund Transfer Card, Forgery and Counter- riod against you by a corporation or association of pro - feit Money. perty owners, when the assessment is made as a result We will pay up to 5500 for: of direct loss to the property, owned by all members collectively, caused by a Peril Insured Against under a. The legal obligation of an "insured" to pay because COVERAGE A - DWELLING, other than earthquake or of the theft or unauthorized use of credit cards is- land shock waves or tremors before, during or after a sued to or registered in an "insured's" name; volcanic eruption. b. Loss resulting from theft or unauthorized use of a This coverage applies only to loss assessments charged fund transfer card used for deposit, withdrawal or against you as owner or tenant of the "residence transfer of funds, issued to or registered in an premises." "insured's" name; We do not cover loss assessment charged against you c. Loss to an "insured" caused by forgery or alteration or a corporation or association of property owners by of any check or negotiable instrument; and any governmental body. d. Loss to an "insured" through acceptance in good The limit of $1000 is the most we will pay with respect faith of counterfeit United States or Canadian paper to any one loss, regardless of the number of assess - currency. ments. We do not cover use of a credit card or fund transfer Condition 1. Policy Period, under SECTIONS I AND II - card: CONDITIONS, does not apply to this coverage. a. By a resident of your household; 8, Collapse. We insure for direct physical loss to covered b. By a person 4vho has been entrusted with either type property involving collapse of a building or any part of of card; or a building caused only by one or more of the following: c. If an "insured" has not complied with all terms and a. Perils Insured Against in COVERAGE C - PERSONAL. conditions under which the cards are issued. PROPERTY. These perils apply to covered buildings All loss resulting from a series of acts committed by any and personal property for loss insured by this addi- one person or in which any one person is concerned or tional coverage; implicated is considered to be one loss. b. Hidden decay; We do not cover loss arising out of "business" use or c. Hidden insect or vermin damage; dishonesty of an "insured." d. Weight of contents, equipment, animals or people; This coverage is additional insurance. No deductible e. Weight of rain which collects on a roof; or 1 applies to this coverage. t. Use of defective material or methods in construction, Defense: remodeling or renovation if the collapse occurs dui - a. We may investigate and settle any claim or suit that ing the course of the construction, remodeling or we decide is appropriate. Our duty to defend a Claim renovation. or suit ends when the amount we pay for the loss Loss to an awning, fence, patio, pavement, swimming equals our limit of liability. pool, underground pipe, flue, drain, cesspool, septic b. If a suit is brought against an "insured" for liability tank, foundation, retaining wall, bulkhead, pier, ;wharf under the Credit Card or Fund Transfer Card cover- or dock is not included under items b., c., d., e., and age, we will provide a defense at our expense by f, unless the loss is a direct result of the collapse of a counsel of our choice. building. HO 0003 (04 -91) Page 5 of 18 ........ ... ......... .... .._.._....._..._ – — .._..___................ Case 1:13 -cv- 02724 -YK Document 1 -3 Filed 11/06/13 Page 9 of 41 POLICY NUMBER Collapse does not include settling, cracking, shrinking, f. Vehicles. bulging or expansion. g. Smoke, meaning sudden and accidental damage This coverage does not increase the limit of liability ap- from smoke. plying to the damaged covered property. This peril does not include loss caused by smoke 9. �Giass or Safety Glazing Material. from agricultural smuding -or.Jndustrial operations. We cover; h. Vandalism or malicious mischief. a. The breakage of glass or safety glazing material i. Falling objects. which is part of a covered building, storm door or This peril does not include loss to property contained storm window; and in a building unless the roof or an outside wall of b. Damage to covered property by glass or safety the building is first damaged by a failing object. glazing material which is part of a building, storm Damage to the faJmg abject itself is not included, door or storm window. j. Weight of ice, snow or sleet which causes damage This coverage does not include loss on the "residence to property contained in a building. premises" if the dwelling has been vacant for more than k. Accidental discharge or overflow of water or steam 30 consecutive days immediately before the loss. A from within a plumbing, heating, air conditioning or dwelling being constructed is not considered vacant. automatic fire protective sprinkler system or from Loss for damage to glass will be settled on the basis within a household appliance. of replacement with safety glazing materials when re- This peril does not include loss; quired by ordinance or law. (1) To the system or appliance from which the water This coverage does not increase the limit of liability that or steam escaped; applies to the damaged property. (2) Caused by or resulting from freezing except as 10. Landlord's furnishings. We will pay up to $2500 for provided in the peril of freezing below; or your appliances, carpeting and other household fur- (3) On the "residence premises" caused by acci- nishings; in an apartment on the "residence premises" dental discharge or overflow which occurs off the regularly rented or held for rental to others by an "in- "residence premises." cured," for loss caused only by the following Perils In- In this peril, a plumbing system does not include a cured Against: sump, sump pump or related equipment. a. Fire or lightning. f. Sudden and accidental tearing apart, cracking, b. Windstorm or hail, burning or bulging of a steam or hot water heating system, an air conditioning, or automatic fire protec- This peril does not include loss to the property tive sprinkler system, or an appliance for heating contained in a building caused by rain, snow, sleet, water. sand or dust unless the direct force of wind or hail damages the building causing an opening in a roof We do not cover loss caused by or resulting from or wall and the rain, snow, sleet, sand or dust enters freezing under this peril. through this opening. m. Freezing of a plumbing, heating, air conditioning or automatic fire protective sprinkler system or of a This peril includes loss to watercraft and their trail- ors, furnishing, equipment, and outboard engines or household appliance. motors, only while inside a fully enclosed building. This peril does not include loss on the "residence premises" while the dwelling is unoccupied, unless c. Explosion. you have used reasonable care to: d. Riot or civil commotion. (1) Maintain heat in the building; or e. Aircraft, including self - propelled missiles and space- (2) Shut off the water supply and drain the system craft. and appliances of water. HO 0003 (04 -91) Page 6 of 18 Case 1:13 -cv- 02724 -Y.K Document 1 -3 Filed 11/06/13 Page 10 of 41 POLICY NUMBER n. Sudden and accidental damage Irom artificially The $2500 limit is the most we will pay in any one loss generated electrical current, regardless of the number of appliances, carpeting or This peril does not include loss to a tube, transistor other household furnishings involved in the loss. or similar electronic component. o. Volcanic eruption other than loss caused by earth- quake, land shock waves or tremors. SECTION I - PERILS INSURED AGAINST COVERAGE A - DWELLING and COVERAGE B - OTHER (4) Smoke from agricultural smudging or industrial STRUCTURES operations; We insure against risk of direct loss to property described (5) Discharge, dispersal, seepage, migration, release in Coverages A and B only if that loss is a physical loss to or escape of pollutants unless the discharge, property. We do not insure, however, for loss: dispersal, seepage, migration, release or escape 1. Involving collapse, other than as provided in Additional is itself caused by a Peril Insured Against under Coverage 8; Coverage C of this policy. 2. Caused by: Pollutants means any solid, liquid, gaseous or a. Freezing of a plumbing, heating, air conditioning or thermal irritant or contaminant, including smoke, automatic fire protective sprinkler system or of a vapor, soot, fumes, acids alkalis, chemicals and household appliance, or by discharge, leakage or waste. Waste includes materials to be recycled, overflow from within the system or appliance caused reconditioned or reclaimed; by freezing. This exclusion applies only while the (6) Settling, shrinking, bulging or expansion, includ- dwelling is vacant, unoccupied or being constructed, ing resultant cracking, of pavements, patios, unless you have used reasonable care to: foundations, walls, floors, roofs or ceilings; (1) Maintain heat in the building; or (7) Birds, vermin, rodents, or insects; or (2) Shut off the water supply and drain the system (8) Animals owned or kept by an "insured." and appliances of water; If any of these cause water damage not other. b. Freezing, thawing, pressure or weight of water or wise excluded, from a plumbing, heating, air ice, whether driven by wind or not, to a: conditioning or automatic fire protective sprinkler (1) Fence, pavement, patio or swimming pool; system or household appliance, we cover loss (2) Foundation, retaining wall, or bulkhead; or caused by the water including the cost of tearing out and replacing any part of a building neces- (3) Pier, wharf or dock; sary to repair the system or appliance. We do c. Theft in or to a dwelling under construction, or of not cover loss to the system or appliance from materials and supplies for use in the construction which this water escaped. until the dwelling is 'finished and occupied; Excluded under Section I - Exclusions. d. Vandalism and malicious mischief if the dwelling has Under items 1. and 2„ any ensuing loss to property de- been vacant for more than 30 consecutive days im- scribed in Coverage A and B not excluded or excepted in mediately before the loss. A dwelling being con- this policy is covered. structed is not considered vacant; e. Any of the following: COVERAGE C - PERSONAL PROPERTY We insure for direct physical loss to the property described (1) Wear and tear, marring, deterioration; in Coverage C caused by a peril listed below unless the loss (2) Inherent vice, latent defect, mechanical break- is excluded in SECTION I - EXCLUSIONS. down; (3) Smog, rust or other corrosion, mold, wet or dry rot; HO 0003 (04.91) Page 7 of 16 Case 1:13 -cv- 02724 -YK Document 1 -3 Filed 11/06/13 Page 11 of 41 POLICY NUMBER 1. Fire or lightning, b. Watercraft, and their furnishings, equipment and 2. Windstorm or hail. outboard engines or motors; or This peril does not include loss to the inside of a build- c• Trailers and campers. ing or the property contained in a building caused by 10, Falling objects. rain, .snow, sleet, sand or dust unless the direct force This peril does not include loss to pcb'perty contained in of wind or hail damages the building causing an opening a building unless the roof or an outside wall of the in a roof or wall and the rain, snow, sleet, sand or dust building is first damaged by a failing object. Damage enters through this opening. to the falling object itself is not included: This peril includes loss to watercraft and their trailers, 11. Weight of ice, snow or sleet which causes damage to furnishings, equipment, and outboard engines or motors, property contained in a building. only while inside a fully enclosed building. 12. Accidental discharge or overflow of water or steam 3. Explosion, from within a plumbing, heating, air conditioning or au- 4. Riot or civil commotion. tomatic fire protective sprinkler system or from within a household appliance. 5. Aircraft, including self-propelled missiles and spacecraft. This peril does not include loss: 6. Vehicles. a. To the system or appliance from which the water 7. Smoke, meaning sudden and accidental damage from or steam escaped; smoke. b. Caused by or resulting from freezing except as pro - This peril does not include loss caused by smoke from vided in the peril of freezing below; or agricultural smudging or industrial operations. c. On the "residence premises" caused by accidental 8. Vandalism or malicious mischief, discharge or overflow which occurs off the "resi- 9. Theft, including attempted theft and loss of property dence premises." from a known place when it is likely that the property in this peril, a plumbing system does not include a has been stolen. sump, sump pump or related equipment. This peril does not include loss caused by theft; 13. Sudden and accidental tearing apart, cracking, burning a. Committed by an "insured "; or bulging of a steam or hot water heating system, an air conditioning or automatic fire protective sprinkler b. In or to a dwelling under construction, or of mate. system, or an appliance for heating water. rials and supplies for use in the construction until We do not cover loss caused by or resulting from the dwelling is finished and occupied; or freezing under this peril. c. From that part of a "residence premises" rented by 14. Freezing of a plumbing, heating, air conditioning or au- an "insured" to other than an "insured." tomatic fire protective sprinkler system or of a house- This peril does not include loss caused by theft that hold appliance. occurs off the "residence premises" of: This peril does not include loss on the "residence a. Property while at any other residence owned by, premises" while the dwelling is unoccupied, unless you rented to, or occupied by an "insured," except while have used reasonable care to: an "insured" is temporarily living there. Property a. Kllaintain heat in the building; or of a student who is an "insured" is covered while b. Shut off the water supply and drain the system and at a residence away from home if the student has appliances of water. been there at any time during the 45 days imme diately before the loss; 15. Sudden and accidental damage from artifically gener- ated electrical current. This peril does not include loss to a tube, transistor or similar electronic component. 16. Volcanic eruption other than loss caused by earthquake, land shock waves or tremors. HO 0003 (04 -91) Page 8 of 18 Case 1:13 -cv- 02724 -YK Document 1 -3 Filed 11/06/13 Page 12 of 41 POLICY NUMBER SECTION I • EXCLUSIONS 1. We do not insure for loss caused directly or indirectly 1. War, including the following and any consequence by any of the following. Such loss is excludeq j, gard- of any of the following: less of any other cause or event contributing concur- (1) Undeclared war, civil war, insurrection, rebellion rently or in any sequence to the loss. or revolution; a. Ordinance or Law, meaning enforcement of any or (2) Warlike act by a military force or military per dinance or law regulating the construction, repair, sonnel; or or demolition of a building or other structure, unless specifically provided under this policy. (3) Destruction, seizure or use for a military pur- b. Earth Movement, meaning earthquake including land pose' shock waves or tremors before, during or after a Discharge of a nuclear weapon will be deemed a volcanic eruption; landslide; mine subsidence; mud- warlike act even if accidental. flow; earth sinking, rising or shifting; unless direct g. Nuclear Hazard, to the extent set forth in the Nu- loss by. clear Hazard Clause of SECTION I - CONDITIONS. (1) Fire; h, Intentional Loss, meaning any loss arising out of (Z) Explosion; or any act committed: (3) Breakage cf glass or Safety glazing material (1) By or at the direction of an "insured "; and which is Dart of a building, storm door or storm (Z) With the intent to cause a loss. window; ensues and then we will pay only for the ensuing 2. We de not insure for loss to property described in loss. Coverages A and B caused by any of the following. However, any ensuing loss to property described in This exclusion does not apply to loss by theft. Coverages A and B not excluded or excepted in this c. Water Damage, meaning: policy is covered. '(1) Flood, surface water, waves, tidal water, overflow a. Weather conditans. However, this exclusion only of a body of water, or spray from any of these, applies if weather conditions contribute in any way whether or not driven by wind; with a cause or event excluded in paragraph 1. above (2) Water which backs up through sewers or drains to produce the loss: or which overflows from a sump; or b. Acts or decisions, including the failure to act or de- (3) Water below the surface of the ground, including cide, of any person, group, organization or govern- water which exerts pressure on or seeps or leaks mental body. through a building, sidewalk, driveway, founda- c. Faulty, inadequate or defective: tion, swimming pool or ether structure. (1) Planning, zoning, development, surveying, siting; Direct loss by fire, explosion or theft resulting from water damage is covered. (2) Design, specification, workmanship, repair, con- struction, renovation, remodeling, grading, com- d. Power Failure, meaning the failure of power or other paction: utility service il, the failure takes place off the "resi- (3} Material used in repair, construction, renovation dence premises." But, if a Peril Insured Against ensues on the "residence premises," we will pay or remodeling; or only for that ensuing loss. (4) Maintenance; e. Neglect, meaning neglect of the "insured" to use of part or all of any property whether on or off the all reasonable means to save and preserve property "residence premises." at and after th" time of a loss. HO 0003 (04 -91) Page 9 of 18 Case 1:13 -cv- 02724 -YK Document 1 -3 Filed 11/06/13 Page 13 of 41 POLICY NUMBER SECTION I • CONDITIONS 1. Insurable Interest and Limit of Liability. Even if more (4) Changes in title or occupancy of the property than one person has an insurable interest in the property during the term of the policy; covered, we will not be liable in any one loss: (5) Specification of damaged buildings` and detailed a. To the "insured" for more than the amount of the repair estimates; "insured's" interest at the time of loss; or (6) The inventory of damaged personal property de- b. For more than the applicable limit of liability. scribed in 2.e. above; 2. Your Duties After Loss. In case of a loss to covered (7) Receipts for additional living expenses incurred property, you must see that the following are done: and records that support the fair rental value a. Give prompt notice to us or our agent; loss; and b. Notify the police in case of loss by theft; (8) Evidence or affidavit that supports a claim under the Credit Card, Fund Transfer Card, Forgery and c. Notify the credit card or fund transfer card company Counterfeit Money coverage, stating the amount in case of loss under Credit Card or Fund Transfer and cause of loss. Card coverage; 3. Loss Settlement. Covered property losses are settled d. Protect the property from further damage. If repairs as follows: to the property are required, you must: a. Property of the following type: (1) Make reasonable and necessary repairs to protect (1) Personal property; the property; and (2) Awnings, carpeting, household appliances, out- (2) Keep an accurate record of repair expenses; door antennas and outdoor equipment, whether e. Prepare an inventory of damaged personal property or not attached to buildings; and showing the quantity, description, actual cash value (3) Structures that are net buildings; and amount of loss. Attach all bills, receipts and at actual cash value at the time of loss but not more related documents that justify the figures in the in- than the amount required to repair or replace. ventory; b. Buildings under Coverage A or B at replacement cost I. As often as we reasonably require: without deduction for depreciation, subject to the (1) Show the damaged property; following: (2) Provide us with records and documents we re- (1) If, at the time of loss; the amount of insurance quest and permit us to make copies; and in this policy on the damaged building is 80% (3) Submit to examination under oath, while not in or more of the full replacement cost of the building immediately before the loss, we will pay the presence of any other "insured," and sign the cost to repair or replace, after application of the same; deductible and without deduction for depreci- g. Send to us, within 60 days after our request, your ation, but not more than the least of the fol- signed, sworn proof of loss which sets forth, to the lowing amounts: best of your knowledge and belief: (a) The limit of liability under this policy that (1) The time and cause of loss; applies to the building; (2) The interest of the "insured" and all others in the (b) The replacement cost of that oart of the property involved and all liens on the property; building damaged for like construction and (3) Other insurance which may cover the loss; use on the same premises; or (c) The necessary amount actually spent to re- pair or replace the damaged building. NO 0003 (04 -91) Page 10 of 18 Case 1:13 -cv- 02724 -YK Document 1 -3 Filed 11/06/13 Page 14 of 41 POLICY NUMBER (2) If, at the time of loss, the amount of insurance (5) You may disregard the replacement cost loss in this policy on the damaged building is less settlement provisions and make claim under than 80% of the full replacement cost of the this policy for loss or damage to buildings building immediately before the loss, we will pay on an actual cash value basis. You may then the greater of the following amounts, but,..,rtot make claim within 180 days after loss for any more than the limit of liability under this policy additional liability according to the provisions that applies to the building: of this Condition 3. Loss Settlement. (a) The actual ',cash value of that par, of the 4. Loss to a Pair or Set. In case of loss to a pair or set building damaged; or we may elect to: (b) That proportion of the cost to repair or re- a. Repair or replace any part to restore the pair or set place, after application of deductible and to its value before the loss; or without deduction for depreciation, that part b. Pay the difference between actual cash value of the of the building damaged, which the total property before and after the loss. amount of insurance in this policy on the 5. Glass Replacement. Loss for damage to glass caused damaged building bears to 80% of the re placement cost of the building. by a Peril Insured Against will be settled on the basis of replacement with safety glazing materials when re- (3) To determine the amount of insurance required quired by ordinance or law. to equal 80% of the full replacement cost of the 6. Appraisal. If you and we fail to agree on the amount building immediately before the loss, do not in- of loss, either may demand an appraisal of the loss. clude the value of: In this event, each party will choose a competent ap- (a) Excavations, foundations, piers or any sup- praiser within 20 days after receiving a written request ports which are below the undersurface of from the other. The two appraisers will choose an the lowest basement floor: umpire. If they cannot agree upon an umpire within 15 (b) 'Those supports in (a) above which are below days, you or we may request that the choice be made the surface of the ground inside the founda- by a judge of a court of record in the state where the tion walls, if there is no basement; and "fesidence premises" is located. The appraisers will separately set the amount of loss. If the appraisers (c) Underground flues, pipes, wiring and drains. submit a written report of an agreement to us, the (4) We will pay no more than the actual cash value amount agreed upon will be the amount of loss. If they of the damage until actual repair or replacement fail to agree, they will submit their differences to the is complete. Once actual repair or replacement umpire. A decision agreed to by any two will set the is complete, we will settle the loss according to amount of loss. the provisions of b.(1) and b.(2) above. Each party will: However, if the cost to repair or replace the a. Pay its own appraiser; and damage is both: b. Bear the other expenses of the appraisal and umpire (a) Less than 5% of the amount of insurance equally. in this policy on the building; and 7. Other Insurance. If a loss covered by this policy is also (b) Less than $2500, covered by other insurance, we will pay only the pro- We will settle the loss according to the pro- portion of the loss that the limit of liability that applies visions of b.(1) and b.(2) above whether or under this policy bears to the total amount of insurance not actual repair or replacement is complete. covering the loss. 8. Suit Against Us. No action can be brought unless the policy provisions have been complied with and the action is started within, one year after the date of loss. 9. Our Option. If we give you written notice within 30 days after we receive your signed, sworn proof of loss, we may repair or replace any part of the damaged property with like property. HO 0003 (04 -91) Page 11 of 18 Case 1:13 -cv- 02724 -YK Document 1 -3 Filed 11/06/13 Page 15 of 41 POLICY NUMBER 10. Loss Payment. We will adjust all losses with you. We b. At our option, we may pay to the mortgagee the will pay you unless some other person is named in the whole principal on the mortgage plus any accrued policy or is legally entitled to receive payment. Loss interest. In this event, we will receive a full assign - will be payable 60 days after we receive your proof of ment and transfer of the mortgage and all securities loss and: held as collateral to the mortgage debt. a. Reach an agreement with you; Subrogation will not impair the right of the - fiiortgag.ee b. There is an entry of a final judgment; or to recover the full amount of the mortgagee's claim. c, there is a filing of an appraisal award with us. 13. No Benefit to Bailee. We will not recognize any as- 11. Abandonment of Property. We need not accept any signment or grant any coverage that benefits a person property abandoned by an "insured." or organization holding, storing or moving property for 12. Mortgage Clause. a fee regardless of any other provision of this policy. The word "mortgagee" includes trustee. 14• Nuclear Hazard Clause. If a mortgagee is named in this policy, any loss payable a. "Nuclear Hazard" means any nuclear reaction, radi- under Coverage ,A or B will be paid to the mortgagee ation, or radioactive contamination, all whether con - and you, as interests appear. If more than one mort- trolled or uncontrolled or however caused, or any gagee is named, the order of payment will be the same consequence of any of these. as the order of precedence of the mortgages. b. Loss caused by the nuclear hazard will not be con - If we deny your claim, that denial will not apply to a sidered loss caused by fire, explosion, or smoke, valid claim of the mortgagee, if the mortgagee: whether these perils are specifically named in or otherwise included within the Perils Insured Against a. Notifies us of any change in ownership, occupancy in Section I. or substantial change in risk of which the mortgagee is aware; c. This policy does not apply under Section I to loss caused directly or indirectly by nuclear hazard, except b. Pays any premium due under this policy on demand that direct loss by fire resulting from the nuclear if you have neglected to pay the premium; and hazard is covered, c. Submits a signed, sworn statement of loss within 15. Recovered Property. If you or we recover any property 60 days after receiving notice from us of your failure for which we have made payment under this policy, you to do so. Policy conditions relating to Appraisal, or we will notify the other of the recovery. At your Suit Against Us and Loss Payment apply to the mortgagee. option, the property will be returned to or retained by you or it will become our property. If the recovered If we decide to cancel or not to renew this policy, the property is returned to or retained by you, the loss mortgagee will be notified at least 10 days before the payment will be adjusted based on the amount you re- date cancellation or nonrenewal takes effect. ceived for the recovered property. If we pay the mortgagee for any loss and deny payment 16. Volcanic Eruption Period. One or more volcanic to you: eruptions that occur within a 72-hour period will be a. We are subrogated to all the rights of the mortgagee considered as one volcanic eruption. granted under the mortgage on the property; or SECTION II - LIABILITY COVERAGES COVERAGE E - Personal Liability 1. Pay up to our limit of liability for the damages for which If a claim is made or a suit is brought against an "insured" the "insured" is legally liable. Damages include pre- for damages because of "bodily injury" or "property dam- judgment interest awarded against the "insured "; and age" caused by an "occurrence" to which this coverage applies, we will: HO 0003 (04 -91) Page 12 of 18 Case 1:13 -cv- 02724 -YK Document 1 -3 Filed 11/06/13 Page 16 of 41 POLICY NUMBER 2. Provide a defense at our expense by counsel of our 1. To a person on the "insured location" with the permis- choice, even if the suit is groundless, false or fraudulent. sion of an "insured "; or We may investigate and settle any claim or suit that we 2. To a person off the "insured location," if the "bodily decide is appropriate. Our duty to settle or defend ends injury ": when the amount we pay for damages resulting from the "occurrence" equals our limit of liability. a. Arises out of a condition on the "insured location" COVERAGE IF - Medical Payments To Others or the ways immediately adjoining; We will pay the necessary medical expenses that are in- b. Is caused by the activities of an "insured "; curred or medically ascertained within three years from the c. Is caused by a "residence employee" in the course date of an accident causing "bodily injury." Medical ex- of the "residence employee's" employment by an penses means reasonable .charges for medical, surgical, x- "insured "; or ray, dental, ambulance, hospital, professional nursing, d. Is caused by an animal owned by or in the care of prosthetic devices and funeral services. This coverage does an "insured." not apply to you or regular residents of your household ex- cept "residence employees." As to others, this coverage applies only: SECTION It - EXCLUSIONS 1. Coverage E - Personal Liability and Coverage F - Med- that is not an "insured location "; ical Payments to Others do not apply to "bodily injury" f. Arising out of: or "property damage the "insured "; (1) The ownership, maintenance, use, loading or a. Which is expected or intended by unloading of motor vehicles or all other motor - b. Arising out of or in connection with a "business" ized land conveyances, including trailers, owned engaged in by an "insured." This exclusion applies or operated by or rented or loaned to an "in- but is not limited to an act or omission, regardless sured "; of its nature cr circumstance, involving a service or (2) The entrustment by an "insured" of a motor duty rendered, promised, owed, or implied to be vehicle or any other motorized land conveyance provided because of the nature of the "business "; to any person; or c. Arising out of the rental or holding for rental of any premises by an "insured." This exclusion does not (3) Vicarious liability, whether or not statutorily im- posed, for the actions of a child or minor using apply to the rental or holding for rental of an "in- a conveyance excluded in paragraph (1) or (2) sured location ": above. (1) On an occasional basis if used only as a resi- This exclusion does not apply to: dende, (1) A trailer not towed by or carried on a motorized (2) In part for use only as a residence, unless a land conveyance. single family unit is intended for use by the oc- cupying family to lodge more than two roomers (2) A motorized conveyance designed for recreational or boarders; or use off public roads, not subject to motor vehicle registration and: (3) In part, as an ;office, studio or private garage; (a) Not owned by an "insured "; or d. Arising out of the rendering of or failure to render professional services; (b) Owned by an "insured" and on an "insured location e. Arising out of a premises: (3) A motorized golf cart when used to play golf on (1) Owned by an "insured "; a golf course; (2) Rented to an "insured "; or (4) A vehicle or conveyance not subject to motor (3) Rented to others by an "insured "; vehicle registration which is: HO 0003 (04-91) Page 13 of 18 Case 1:13 -cv- 02724 -YK Document 1 -3 Filed 11/06/13 Page 17 of 41 POLICY NUMBER (a) Used to service an "insured's" residence; (2) That are sailing vessels, with or without auxiliary (b) Designed for assisting the handicapped; or power: (c) In dead storage on an "insured location "; (a) Less than 25 feet in overall length; g. Arising out of: (b) 26 feet or more in overall length, not owned by or rented to an "insured." (1) The ownership; maintenance, use, loading or - - unloading of an excluded - watercraft described (3) That are stored; below; h. Arising out of: (2) The entrustment by an "insured" of an excluded (1) The ownership, maintenance, use, loading or watercraft described below to any person; or . unloading of an aircraft; (3) Vicarious liability, whether or not statutorily im- (2) The entrustment by an "insured" of an aircraft posed, for the actions of a child or minor using to any person; or an excluded watercraft described below. (3) Vicarious liability, whether or not statutorily im- Excluded watercraft are those that are principally posed, for the action of a child or minor using designed to be propelled by engine power or electric an aircraft. motor, or are sailing vessels, whether owned by or An aircraft means any contrivance used or designed rented to an "insured." This exclusion does not for flight, except model or hobby aircraft not used apply to watercraft: or designed to carry people or cargo; (1) that are not sailing vessels and are powered by: i. Caused directly or indirectly by war, including the (a) Inboard or inboard - outdrive .engine or motor following and any consequences of any of the fol- power of 50 horsepower or less not owned lowing: by an "insured "; (1) Undeclared war, civil war, insurrection, rebellion (b) Inboard or inboard- outdrive engine or motor or revolution; power of more than 5 horsepower not owned (2) Warlike act by a military force or military per - by or rented to an "insured "; sonnel: or (c) One or more outboard engines or motors (3) Destruction, seizure or use for a military pur- with 25 total horsepower or less; pose. (d) One or more outboard engines or motors Discharge of a nuclear weapon will be deemed a with more than 25 total horsepower if the warlike act even if accidental; outboard engine or motor is not owned by j. Which arises out of the transmission of a commu- an "insured "; nicable disease by an "insured "; (e) Outboard engines or motors of more than k. Arising out of sexual molestation, corporal punish - 25 total horsepower owned by an "insured" ment or physical or mental abuse; or if; I. Arising out of the use, sale, manufacture, delivery, (i) You acquire them prior to the policy pe- transfer or possession by any person of a Controlled riod; and Substance(s) as defined by the Federal Food and (a) You declare them at policy inception; Drug Law at 21 U.S.C.A. Sections 811 and 812. or Controlled Substances include but are not limited to (b) Your intention to insure is reported cocaine, LSD, marijuana and all narcotic drugs. However, this exclusion does not apply to the legiti- to us in writing within days after mate use of prescription drugs by a person following you acquire the outboarrd d engines or motors. the orders of a licensed physician. (ii) You acquire them during the policy pe• Exclusions e., f., g., and h. do not apply to "bodily in- riod. jury" to a "residence employee" arising out of and in the course of the "residence employee's" employment by This coverage applies for the policy period. an "insured." HO 0003 (04 -91) Page 14 of 18 Case 1:13 -cv- 02724 -YK Document 1 -3 Filed 11/06/13 Page 18 of 41 POLICY NUMBER 2. Coverage E • Personal Liability, does not apply to: (1) American Nuclear Insurers; a. Liability: (2) Mutual Atomic Energy Liability Underwriters; (1) For any loss assessment charged against you as (3) Nuclear Insurance Association of Canada; a member of an association or community of or any of their successors; or property owners; (2) Under any contract or agreement. However, this f. "Bodily injury" to you or an "insured" within the exclusion does not apply to written contracts: meaning of part a. or b. of "insured" as defined. (a) That directly relate to the ownership, main- 3. Coverage F - Medical Payments to Others, does not tenance or use of an "insured location or apply to "bodily injury": (b) Where the liability of others is assumed by the a. To a "residence employee" if the "bodily injury": "insured" prior to an "occurrence "; (1) Occurs off the "insured location "; and . unless excluded in ;(1) above or elsewhere in this (2) Does not arise out of or in the course of the policy; "residence employee's" employment by an "in- b. "Property damage" to property owned by the "in- sured "; sured "; b. To any person eligible to receive benefits: c. "Property damage" to property rented to, occupied (1) Voluntarily provided; or or used by or in the care of the "insured." This exclusion does not apply to "property damage" (2) Required to be provided; caused by fire, smoke or explosion; under any: d. "Bodily injury" to any person eligible to receive any (1) Workers' compensation law; benefits: (1) Voluntarily provided; or (2) Non - occupational disability law; or (3) Occupational disease law; (2) Required to be provided; c. From any: by the "insured" under any; (1) Workers' compensation law; (1) Nuclear reaction; (2) Non - occupational disability law; or (2) Nuclear radiation: or (3) Occupational disease law; (3) Radioactive contamination; e. "Bodily injury" or "property damage" for which an all whether controlled or uncontrolled or however "insured" under this policy: caused; or (1) Is also an insured under a nuclear energy liability (4) Any consequence of any of these; or policy; or d. To any person, other than a "residence employee" (2) Would be an insured under that policy but for of an "insured," regularly residing on any part of the the exhaustion of its limit of liability. "insured location." A nuclear energy liability policy is one issued by: SECTION II - ADDITIONAL COVERAGES We cover the following in addition to the limits of liability: b. Premiums on bond required in a suit we defend, but 1. Claim Expenses, Vde pay: not for bond amounts more than the limit of liability for Coverage E. We need not apply for or furnish a. Expenses we incur and costs taxed against an "in- any bond; sured" in any suit we defend; HO 0003 (04 -91) Page 15 of 18 Case 1:13 -cv- 02724 -YK Document 1 -3 Filed 11/06/13 Page 19 of 41 POLICY NUMBER c. Reasonable expenses incurred by an "insured" at our 4. Loss Assessment. We will pay up to $1000 for your request, including actual loss of earnings (but not share of loss assessment charged during the policy pe- loss of other income) up to $50 per day, for as- riod against you by a corporation or assocation of pro - sisting us in the investigation or defense of a claim perty owners, when the assessment is made as a result or suit: and of: d. Interest on the entire judgment which accrues after a. "Bodily injury" or "property damage" riot excluded' entry of the judgment and before we pay or tender, under Section II of this policy; or or deposit in court that part of the judgment which does not exceed the limit of liability that applies. b. Liability for an act of a director, officer or trustee in 2. First Aid Expenses. We will pay expenses for first aid the capacity as a director, officer or trustee, pro vided: to others incurred by an "insured" for "bodily injury" covered under this policy. We will not pay for first aid (1) The director, officer or trustee is elected by the to you or any other "insured." members of a corporation or association of pro - 3. Damage to Property of Others. We will pay, at re- perty owners; and placement cost, up to $500 per "occurrence" for "pro- (2) The director, officer or trustee serves without perty damage" to property of others caused by an deriving any income from the exercise of duties "insured." which are solely on behalf of a corporation or We will not pay for "property damage ": association of property owners. a. To the extent of any amount recoverable under This coverage applies only to loss assessments charged Section I of this policy; against you as owner or tenant of the "residence b. Caused intentionally by an "insured" who is 13 years premises." of age or older; We do not cover loss assessments charged against you or a corporation or association of property owners by c. To property owned by an "insured "; any governmental body. d. To property owned by or rented to a tenant of an Regardless of the number of assessments, the limit of "insured" or a resident in your household; or $1000 is the most we will pay for loss arising out of; e. Arising out of: a. One accident, including continuous or repeated ex- (1) A "business" engaged in by an "insured "; posure to substantially the same general harmful (2) Any act or omission in connection with a prom- condition; or ises owned; rented or controlled by an "insured," b. A covered act of a director, officer or trustee. An other than the "insured location "; or act involving more than one director, officer or (3) The ownership, maintenance, or use of aircraft, trustee is considered to be a single act. watercraft or motor vehicles or all other motor- The following do not apply to this coverage: ized land conveyances. 1. Section II - Coverage E - Personal Liability Exclusion This exclusion does not apply to a motorized land 2.a.(1); conveyance designed for recreational use off public roads, not subject to motor vehicle registration and 2• Condition 1, Policy Period, under SECTIONS I AND not owned by an "insured." 11 - CONDITIONS. SECTION li - CONDITIONS 1. Limit of Liability.. Our total liability under Coverage E All "bodily injury" and "property damage" resulting from for all damages resulting from any one "occurrence" any one accident or from continuous or repeated expo - will not be more than the limit of liability for Coverage sure to substantially the same general harmful conditions E as shown in the Declarations. This limit is the same shall be considered to be the result of one "occurrence." regardless of the number of "insureds," claims made or persons injured. HO 0003 (04 -91) Page 16 of 18 Case 1:13 -cv- 02724 -YK Document 1 -3 Filed 11/06/13 Page 20 of 41 POLICY NUMBER Our total liability under Coverage F for all medical ex. e. The "insured" will not, except at the "insured's" own penses payable for "bodily injury" to one person as the cost, voluntarily make payment, assume obligation result of one accident will not be more than the limit or incur expense other than for first aid to others of liability for Coverage F as shown in the Declarations. at the time of the "bodily injury." 2. Severabitity of Insurance. This insurance applies sepa- 4. Duties of an Injured Person - Coverage F - Medical rately to each "insured." This condition will not increase `Payments to Others. our limit of liability for any one "occurrence," The injured person or someone acting for the injured 3. Duties After Loss. In case of an accident or "occur- person will: rence," the "insured" will perform the following duties that apply. You will help us by seeing that these duties a, Give us written proof of claim, under oath if re are performed: quired, as soon as is practical; and a. Give written notice to us or our agent as soon as b. Authorize us to obtain copies of medical reports and is practical, t ^ sets forth; records. (1) The identity of the policy and "insured "; The injured person will submit to a physical exam by a (2) Reasonably available information on the time, doctor of our choice when and as often as we reason- place and circumstances of the accident or "oc- ably require. currence"; and 5. Payment of Claim - Coverage F - Medical Payments to (3) Names and addresses of any claimants and wit- Others. Payment under this coverage is not an admis- nesses; sion of liability by an "insured" or us. b. Promptly forward to us every notice, demand, sum- 6. Suit Against Us. No action can be brought against us mons or other process relating to the accident or unless there has been compliance with the policy pro - "occurrence"; visions. c. At our request, help us: No one will have the right to join us as a party to any action against an "insured." Also, no action with re- {1) To make settlement; spect to Coverage E can be brought against us until the (2) To enforce any right of contribution or idemnity obligation of the "insured" has been determined by final against any person or organization who may be judgment or agreement signed by us. liable to an "insured"; 7. Bankruptcy of an Insured. Bankruptcy or insolvency of (3) With the conduct of suits and attend hearings an "insured" will not relieve us of our obligations under and trials; and this policy. (4) To secure and give evidence and obtain the at- 8. Other Insurance - Coverage E • Personal Liability. This tendencc of witnesses; insurance is excess over other valid and collectible in- d. Under the coverage - Damage to Property of Others surance except insurance written specifically to cover as . submit to us within 60 days after the loss, a sworn excess over the limits of liability that apply in this policy. statement of loss and show the damaged property, if in the "insured's" control; SECTION I AND II - CONDITIONS 1. Policy Period. This policy applies only to loss in Section c. Made false statements; I or "bodily injury" or "property damage" in Section II, relating to this insurance. which occurs during the policy period. 3.- Liberalization Clause. If we make a change which 2. Concealment or Fraud. The entire policy will be void, broadens coverage under this edition of our policy with if, whether before or after a loss, an "insured" has: out additional premium charge, that change will auto - a. Intentionally concealed or misrepresented any mate- matically apply to your insurance as of the date we rial fact or circumstance; implement the change in your state, provided that this b. Engaged in fraudulent conduct; or implementation date falls within 60 days prior to or during the policy period stated in the Declarations. HO 0003 (04 -91) Page 17 of 18 Case 1:13 -cv- 02724 -YK Document 1 -3 Filed 11/06/13 Page 21 of 41 POLICY NUMBER This liberalization Clause does not apply to changes c. When this policy is cancelled, the premium for the implemented through introduction of a subsequent edi- period from the date of cancellation to the expiration tion of our policy. date will be refunded pro rata. 4. Waiver or Change of Policy Provisions. d. If the return premium is not refunded with the notice A waiver or change of a provision of this policy must of cancellation or when this policy is returned to us, be in writing by us to be valid'. Our request for an ap- we will refund it within a reasonable time after the praisal or examination will not waive any of our rights. date cancellation takes effect. 5. Cancellation. B. Nonrenewal. We may elect not to renew this policy. a. You may cancel this policy at any time by returning We may do so by delivering to you, or mailing to you it to us or by letting us know in writing of the date at your mailing address shown in the Declarations, cancellation is to take effect. written notice at least 30 days before the expiration date b. We may cancel this policy only for the reasons of this policy. Proof of mailing will be sufficient proof stated below by letting you know in writing of the of notice. date cancellation takes effect. This cancellation no- 7. Assignment. Assignment of this policy will not be valid tice may be delivered to you, or mailed to you at unless we give our written consent. your mailing address shown in the Declarations. 8. Subrogation. An "insured" may waive in writing before Proof of mailing will be sufficient proof of notice. a loss all rights of recovery against any person. If not (1) When you have not paid the premium, we may waived, we may require an assignment of rights of re- cancel at any time by letting you know at least covery for a loss to the extent that payment is made 10 days before the date cancellation takes effect, by us. (2) When this policy has been in effect for less than If an assignment is sought, an "insured" must sign and 60 days and is not a renewal with us, we may deliver all related papers and cooperate with us. cancel for any reason by letting you know at Subrogation does not apply under Section 11 to Medical least 10 days before the date cancellation takes Payments to Others or Damage to Property of Others. effect. S. Death. If any person named in the Declarations or the (3) When this policy has been in effect for 60 days spouse, if a resident of the same household, dies: or more, or at any time if it is a renewal with us, we may cancel: a. We insure the legal representative of the deceased I but only with respect to the premises and property (a) If there 'has been a material misrepresen- of the deceased covered under the policy at the time tation of fact which if known to us would of death; have caused us not to issue the policy; or b. "Insured" includes: (b) If the risk has changed substantially since the Policy was issued. (1) any member of your household who is an "in- sured" at the time of your death, but only while This can be done by letting you know at least a resident of the "residence r 30 days before the date cancellation takes effect. p p mises "; and (4) When this policy is written for a period of more ( With respect to your property, the person having than one year, we may cancel for any reason at proper temporary custody of the property until anniversary by letting you know at least 30 days appointment and qualification of a legal repre- before the date cancellation takes effect. sentative, Copyright, Insurance Services Office, Inc., 1990 HO 0003 (04 -91) Page 18 of 18 Case 1:13 -cv- 02724 -YK Document 1 -3 Filed 11/06/13 Page 22 of 41 POLICY NUMBER NO Section II _ Liability Coverages HO 0496 (04 -91) for Home Day Care Business LIMITED Section 14 Property Coverages for Home Day Care Business If an "insured" regularly provides home day care services 3. Limits coverage for property used on the "residence to a person or persons other than "insureds" and receives premises" for the home day care enterprise to $2,500, monetary or other compensation for such services, that because Coverage C - Special Limits of Liability - item enterprise is a "business." Mutual exchange of home day 8. imposes that limit on "business" property on the care services, however, is not considered compensation. "residence premises." (Item 8. corresponds to item The rendering of home day care services by an "insured" 5. in Form HO 0008.); to a relative of an "insured" is not considered a "business." 4. Limits coverage for property used away from the "resi- Therefore, with respect to a home day care enterprise which Bence premises" for the home day care enterprise to is considered to be a "business," this policy: $250, because Coverage C - Special Limits of Liability - 1. Does not provide Section it • Liability Coverages because item 9. imposes that limit on "business" property away a "business" of an "insured" is excluded under exclusion from the "residence premises." Special Limit of Liability 1.b. of Section II - Exclusions; item 9. does not apply to adaptable electronic apparatus as described in Special Limit of Liability items 10. and 2. Does not provide Section I - Coverage 6 coverage where 11. (items 9., 10. and 11, correspond to items 6., 7. and other structures are used in whole or in part for "busi- 8. respectively in Form HO 0008.) ness ": THIS ENDORSEMENT DOES NOT CONSTITUTE R REDUCTION OF COVERAGE. Copyright, Insurance Services Office, Inc., 1990 Case 1:13 -cv- 02724 -YK Document 1 -3 Filed 11/06/13 Page 23 of 41 POLICY NUMBER hoAeowner'.s POLICY COVERAGE AMENDMENTS HO 7002 (06-06) I SECTION I - PROPERTY COVERAGES ADDITIONAL COVERAGES i We will pay up to S1,000 for Credit Card, Fund Transfer Card, Forgery and Counterfeit Money coverage i provided in Item 5. of the policy form attached. SECTION II - LIABILITY COVERAGES SECTION II • EXCLUSIONS I 1. Exclusion 1.b. does not apply to the following incidental business pursuits. 1 The delivering of newspapers, babysitting, caddying, caring for lawns or other similar incidental business pursuits conducted by an "insured" who has not attained the age of 18 years. 2. Exclusion 1.g. is replaced with the following: g. Arising out of: (1) The ownership, maintenance, use, loading or unloading of an excluded watercraft described below; (2) The entrustment by an "insured" of an excluded watercraft described below to any person; or (3) Vicarious liability, whether or not statutorily imposed, for the actions of a child or minor using an excluded watercraft described below. - Excluded watercraft are those that are principally designed to be propelled by engine power or electric motor, or are sailing vessels, whether owned by or rented to an "insured," This exclusion does not apply to watercraft. (1) That are not sailing vessels and are powered by: (a) Inboard or inboard - outdrive engine or motor power of 50 horsepower or less not owned by an "insured ", (b) Inboard or inboard - outdrive engine or motor power of more than 50 horsepower not owned by or rented to an "insured "; (cl Inboard or inboard - outdrive engine or motor power of.50 horsepower or less and 15 feet or less in overall length and owned by an "insured "; (d) One or more outboard engines or motors regardless of total horsepower. (2) That are sailing vessels, with or without auxiliary power: (a) Less than 26 feet in overall length; (b) 26 feet or more in overall length, not owned by or rented to an "insured." (3) That are stored, Page 1 of 2 Motorists Mutual Insurance Company' 471 East Broad Street, Columbus, Ohio 43215.3661 Case 1:13 -cv- 02724 -YK Document 1 -3 Filed 11/06/13 Page 24 of 41 POLICY NUMBER h onwt eo"— er s MUTUAL. PROVISIONS AnnvaI Meeting The annual meeting of the membership of the company is held at its home office in Columbus, Ohio on the fourth Monday! in April of each year at- one o'clock p.m. unless said day is a holiday in which event the next svcceebinq day, not a holiday. Nonassessable This poficyj is nonassessable. While this policy is in force, the named insured. is a member of the company and, as such, is entitled to the privileges provided by the by -laws of the company. In Witness Whereof, Motorists Mutual Insurance Company has caused this policy to be signed by its President and Secretary at Columbus, Ohio: Secretary President and COO HO 7002 (06.06) Page 2 of 2 Case 1:13 -cv- 02724 -YK Document 1 -3 FRed 11 /06/13 Page 25 of 41 POLICY NUMBER Identity Fraud Expense Coverage H0 7050 (09 -04) THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. DEFINITIONS The following Additional Coverage Is added under With respect to the provisions of this endorsement only, the Section is following definitions are added: IDENTITY FRAUD EXPENSE 1. "Identity fraud" means the act of knowingly transferring We will pay up to $15,000 for "expenses" incurred by an or using, without lawful authority, a means of identifi- "insured" as the direct result of any one "identity fraud" cation of an - Insured" with the Intent to comma, or to first discovered or learned of during the policy period. aid or abet another to commit, any unlawful activity that Any act or series of acts committed by one or more per - constitutes a violation of federal law or a felony under sons, or in which such person or persons are aiding or any applicable state or local law. abetting others against an "Insured," is considered to be 2. "Expenses" means. one "identity fraud," even if a series of acts continues into a. Costs for notarizing affidavits or similar documents a subsequent policy period. attesting to fraud required by financial institutions This coverage is additional insurance. or similar credit grantors or credit agencies. EXCLUSIONS b. Costs for certified mail to law enforcement agencies, The following additional exclusions apply to this coverage: credit agencies, financial institutions or similar credit We do not cover: grantors. 1. Loss arising out of or in connection with a "business." c. Lost income resulting from time taken off work to 2 "Expenses" Incurred due to any fraudulent, dishonest complete fraud affidavits, meet with or talk to law or criminal act by an "insured" or any person aiding or enforcement agencies, credit agencies and /or legal abetting an "Insured," or by any authorized represen counsel, up to a maximum payment of $200 per day. Total payment for lost income Is not to exceed (alive an "insured," whether acting alone or in cotlu 55,000. Sion with others. d. loan application fees for re- applying for a loan or 3. Loss other than - expenses." SPECIAL DEDUCTIBLE loans when the original application is rejected solely because the lender received incorrect credit informa- We will pay only that part of the loss that exceeds $250. (10f;. No other deductible applies to "identify fraud" expense e. Reasonable attorney fees incurred as a result of coverage. "Identity fraud" lo: SECTION I • CONDITION (1) Defend lawsuits brought against an "insured" by 2.• Your Duties After Loss merchants, financial institutions or their collection The following is added: agencies: Send to us, within 60 days after our request, receipts, bills (2) Remove any criminal or civil judgments wrongly or other records that support your clalrn for "expenses" entered agalnsi an "insured ": and under "identity fraud " coverage. (3) Challenge the accuracy or completeness of any All other provisions on this policy apply. Information in a consumer credit report. I. Charges incurred for long distance telephone calls to merchants, lane enforcement agencies. financial in- stitutions or similar credit grantors, or credit agen• cies to report or discuss an actual "identity fraud." Includes copyrighted material of ISO Properties, Inc., with its permission. Copyright, ISO Properies, Inc., 2002 Motorists Mutual Insurance Company HO 7050 (09-04) Case 1:13 -cv- 02724 -YK Document 1 -3 Filed 11/06/13 Page 26 of 41 POLICY NUMBER Waterbed Gu*age HO 7125 (01-95) THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. The following provisions are added to this policy: SECTION I We insure for direct physical loss to property covered under Section I caused by accidental discharge of water from within a waterbed. This coverage does not apply to loss on the "residence premises" resulting from freezing while the dwelling is unoccupied unless you have used reasonable care to maintain heat in the dwelling. SECTION !i Coverage E - Personal Liability applies to "property damage" arising out of an "insured's" ownership or use of a waterbed in the residence occupied by the "insured.' All other provisions of this policy apply. Motorists Mutual Insurance Company Case 1:13 -cv- 02724 -YK Document 1 -3 Filed 11/06/13 Page 27 of 41 POLICY NUMBER Special Provisions - Pennsylvania HO 7137 (08 -10) THIS ENDORSEMENT CHANGES THE POLICY, PLEASE READ IT CAREFULLY. Throughout this policy, the following is added to any pro. Electronic apparatus includes; vision which uses the term actual cash :.value: a. Accessories and antennas; or Actual cash value is calculated as the amount it would cost 4. Tapes, wires, records, discs or other media; to repair or replace covered property, at the time of loss or damage, with material:of like kind and quality, subject to for use with any electronic apparatus described in this a deduction for deterioration, depreciation and obsolescence. item 11, Actual cash value applies to valuation of covered property Property Not Covered regardless of whether that property has sustained partial or Item 3.b. is deleted and replaced by the following: total loss or damage. 3. Motor vehicles or all other motorized land conveyances. The actual cash value of the lost or damaged property may This includes: be significantly less than its replacement cost. b. Electronic apparatus that is designed to be operated. SECTION I - PROPERTY COVERAGES solely by use of the power from the electrical system COVERAGE C - Personal Property of motor vehicles or all other motorized land con - Special Limits of Liability veyances. Electronic apparatus includes: Items 10. and 11. are deleted and replaced by the following (1) Accessories or antennas; or (These are items 7. and 8. in form HO 0008): (2) Tapes, wires, records, discs or other media; 10. $1000 for loss to electronic apparatus, while in or upon for use with any electronic apparatus described in a motor vehicle or other motorized land conveyance, if this item 3.b. the electronic apparatus is equipped to be operated by The exclusion of property described in 3.a. and 3.b. power from the electrical system of the vehicle or con- above applies only while the property is in or upon veyance while retaining its capability of being operated the vehicle or conveyance. by other sources of 'power. Electronic apparatus in- We do cover vehicles or conveyances not subject to cludes: motor vehicle registration which are: a. Accessories and antennas; or a. Used to service an "insured's" residence; or b, Tapes, wires, records, discs or other media; b. Designed for assisting the handicapped, for use with any electronic apparatus described in this COVERAGE 0 - Loss of Use item 10. For all forms other than HO 0004 and HO 0006, item 1. is 11. $1000 for loss to electronic apparatus, while not in or deleted and replaced by the following: upon a motor vehicle or other motorized land convey 1. If a loss covered under this Section makes that part of ante, if the electronic .apparatus: the "residence premises" where you reside not fit to live a. Is equipped to be operated by power from the elec- in, we cover the Additional Living Expense, meaning any trical system of the vehicle or conveyance while re- necessary increase in living expenses incurred by you taining its capability of being operated by other so that your household can maintain its norma! standard sources of power; of living. b, is away from the "residence premises "; and Payment will be for the shortest time required to repair or replace the damage or, if you permanently relocate, c. Is used at any time or in any manner for any "bu- the shortest time required for your household to settle siness" purpose. elsewhere. HO 7137 (08 -10) Page 1 of 7 Case 1: 13- cv- 02724 =YK Document 1 -3 Filed 11/06/13 Page 28 of 41 POLICY NUMBER For forms HO 0004 and HO 0006, Item 1. is deleted and c. A neighbor's tree(s) felled by a Peril Insured replaced by the following: Against under Coverage C. 1. If a loss by a Peril Insured Against under this polir;y to The $500 limit is the most we will pay in any covered property or the building containing the property one loss regardless of the number of fallen trees. makes the "residence premises" not fit to live in, we (2) Tree removal coverage as described in B.(1) cover the Additional Living Expense, meaning any nec above applies only if: essary increase in living expenses 'incurred by you so that your household can maintain, its normal standard a. The tree damages a structure covered under this of living. policy; or Payment will be for the shortest time required to repair b. Windstorm or Hail or Weight of Ice, Snow or or replace the damage or, if you permanently relocate, Sleet causes damage to a structure covered un- the shortest time required for your household to settle der this policy and the Pennsylvania Governor elsewhere. declares the area in which the "residence prem- ADDITIONAL_ COVERAGES ises" is located to be a disaster area as a result j of such weather conditions. 1. Debris Removal is deleted and replaced by the following: 9. Glass or Safety Glazing Material is deleted and replaced 1. Debris Removal by the following: A. We will pay your reasonable expense for the removal 9. Glass or Safety Glazing Material. of: a. We cover: (1) Debris of covered property if a Peril Insured (1) For all Forms other than HO 0004 and HO 0006, Against that applies to the damaged property the breakage of glass or safety glazing material causes the loss; or which is part of a covered building, storm door (2) Ash, dust or particles from a volcanic eruption or storm window, and for: that has caused direct loss to a building or pro- (a) Form HO 0004, the breakage of glass or perry contained in a building. safety glazing material which is part of a This expense is included in the limit of liability that building, storm door or storm window, and applies to the damaged property. If the amount to covered as Building Additions and Alterations; be paid for the actual damage to the property plus and the debris removal expense is more than the limit (b) Form HO 0006, the breakage of safety glaz- of liability for the damaged property, an additional ing material which is part of a building, 5% of the limit of liability is available for debris re- storm door or storm window, and covered moval expense. (The second sentence of this para- under Coverage A; and graph does not apply to Form HO 0008.) (2) For all forms other than HO 0004 and HO 0006, 13.0) If circumstances of a loss meet those specified the breakage, caused directly by Earth Move - in (2) below, we will pay your reasonable ex- ment, of glass or safety glazing material which pense, up to $500, for the removal from the is part of a covered building, storm door or "residence premises" of: storm window, and for: a. Your tree(s) felled by the peril of Windstorm (a) Form HO 0004, the breakage, caused directly or Hail; by Earth Movement, of glass or safety glaz- b. Your tree(s) felled by the peril of Weight of ing material which is part of a building, Ice, Snow or Sleet (Forms HO 0002, HO storm door or storm window, and covered 0003, HD ..0004 and HO 0006 only); or as Building Additions and Alterations; and HO 7137 (08 -10) Page 2 of 7 ............ . Case 1:13 -cv- 02724 -YK Document 1 -3 Filed 11/06/13 Page 29 of 41 POLICY NUMBER (b) Form HO 0006, the breakage, caused directly (1) The construction, demolition, remodeling, reno- i by Earth Movement, of glass or safety glaz- vation or repair of that part of a covered building ing material which is part of a building, or other structure damaged by a PERIL INSURED storm door or storm window, and covered AGAINST: , under Coverage A; and (2) The demolition and reconstruction of the un- i (3) The direct physical loss to covered property damaged part of a covered building or other ' caused solely by the pieces, fragments or splin- structure, when that building or other structure ters of broken glass or safety glazing material must be totally demolished because of damage which is part of a building, storm door or storm by a PERIL INSURED AGAINST to another part window. of that covered building or other structure; or b. This coverage does not include loss: (3) The remodeling, removal or replacement of the (1) To covered property which results because the portion of the undamaged part of a covered glass or safety glazing material has been broken, building or other structure necessary to complete except as provided in a.(3) above; or the remodeling, repair or replacement of that part (2) On the "residence premises" it the dwelling has of the covered building or other structure dam - been vacant for more than 30 consecutive days aged by a PERIL INSURED AGAINST. immediately before the loss, except when the b. You may use all or part of this ordinance or law breakage results directly from Earth Movement coverage to pay for the increased costs you incur as provided for in a.(2) above. A dwelling being to remove debris resulting from the construction, constructed is not considered vacant. demolition, remodeling, renovation, repair or re- Loss to glass covered under this ADOTIONAL COVER- placement of property as stated in a. above. AGE 9. will be settled on the basis of replacement with c. We do not cover: safety glazing materials when required by ordinance or law. (1) The loss in value to any covered building or other structure due to the requirements of any ordi- For Forms HO 0001 and HO 0008, we will pay up to nance or law; or $100 for loss under this coverage. (2) The costs to comply with any ordinance or law This coverage does not increase the limit of liability that which requires any "insured" or others to test applies to the damaged property. for, monitor, clean up, remove, contain, treat, (This is ADDITIONAL COVERAGE 8. in Forms HO 0001 detoxify or neutralize, or in any way respond to, and HO 0008.) or assess the effects of, pollutants on any cov- The following ADDITIONAL COVERAGE is added to all Forms ered building or other structure. except HO 0008. With respect to Form HO 0004, the words Pollutants means any solid, liquid, gaseous or 'covered building' used below, refer to property covered thermal irritant or contaminant, including smoke, under ADDITIONAL COVERAGE 10. Building Additions and vapor, soot, fumes, acids, alkalis, chemicals and Alterations. waste. Waste includes materials to be recycled, 11. Ordinance or Law, reconditioned or reclaimed. a. You may use up to 10% of the limit of liability that This coverage is additional insurance. applies to COVERAGE, A (or for Form HO 0004, you (This is ADDITIONAL COVERAGE 10. in Forms HD 0001 may use up to 1'0 of the limit of liability that ap- and HO 0006.) plies to Building Additions and Alterations) for the increased costs you incur due to the enforcement of any ordinance or law which requires or regulates: HO 7137 (08 -10) Page 3 of 7 .. ........ ...._ ... -- Case 1:13 -cv- 02724 -YK Document 1 -3 Filed 11/06/13 Page 30 of 41 POLICY NUMBER SECTION I - PERILS INSURED AGAINST 2. Earth Movement is deleted and replaced by the follow- Under Form HO 00 03,i COVERAGE A - DWELLING and ing: COVERAGE B - OTHER STRUCTURES, item 2.e.(3) is deleted 2, Earth Movement, meaning earthquake, including land and replaced by the following: shock waves or tremors before, during or after a vol- (3) Smog, rust or ,other corrosion, fungus, mold, wet canic eruption; landslide; mine subsidence,; mudflow; or dry rot; earth sinking, rising or shifting; unless direct loss by: In Endorsements: a. Fire; or HO 00 15, Special Property Coverage, this is item 1.b.(4) (c) b. Explosion; under Section I - Perils Insured Against. ensues and then we will pay only for the ensuing loss. HO 04 14, Special Computer Coverage, this is item 13.(3)(c) This exclusion does not apply to loss by theft. under Perils Insured Against. (This is exclusion 1.b. in Form HO 0003.) HO 17 31, Unit - Owners Coverage C, this is item 3.d.(3) un- 4. Power Failure is deleted and replaced by the following: der Section I - Perils Insured Against. 4. Power Failure, meaning the failure of power or other HO 17 32, Unit - Owners Coverage A, this is item 2.e.(3) un- utility service it the failure takes place off the "residence der Perils Insured Against: premises." But if the failure of power or other utility SECTION I . EXCLUSIONS service results in a loss, from a PERIL INSURED AGAINST on the "residence premises," we will pay for 1. Ordinance or Law, meaning any ordinance or law: the loss or damage caused by that PERIL INSURED a. Requiring or regulating the construction, demolition, AGAINST. remodeling, renovation or repair of property, includ- (This is exclusion 1.d. in Form HO 0003.) ing removal of any resulting debris. This exclusion 8, Intentional Loss is replaced by the following: 1.a, in all forms other than HO 0003, and 1.a.(1) in 8. Intentional Loss form HO 0003, and 1.a.(1) in form HO 0003, does not apply to the amount of coverage that may be a. Intentional Loss means any loss arising out of provided for under ADDITIONAL COVERAGES, Glass any act an "insured" commits or conspires to or Safety Glazing Material or Ordinance or Law; commit with the intent to cause a loss. b. The requirements of which result in a loss in value In the event of such loss, no "insured" is entitled to property; or to coverage, even "insureds" who did not com- c. Requiring any "insured" or others to test for, moni mit or conspire to commit the act causing the loss. tor, clean up, remove, contain, treat, detoxify or neutralize, or in an .,y way respond to, or assess the b. However, this exclusion will not apply to deny effects of pollutant's, payment to the "insured" who did not cooperate in or contribute to the creation of the loss if the Pollutants means any solid, liquid, gaseous or ther- loss: mal irritant or contaminant, including smoke, vapor, (1) Is otherwise covered property under Coverage soot, fumes, acids, alkalis, recycled, reconditioned A, B or C of the policy; and or reclaimed. This exclusion applies :whether or not the property has (2) Arises out of abuse to that innocent "in- been physically damaged. sured" by another "insured." (This is exclusion 1.a, in Form HO 0003.) With respect to this provision, abuse means: (a) Abuse as defined in the Pennsylvania Protection From Abuse Act; or HO 7137 (08 -1.0) Page 4 of 7 Case 1:13 -cv- 02724 -YK Document 1 -3 Filed 11/06/13 Page 31 of 41 POLICY HUMBER i i (b) Attempting to cause or intentionally, The replacement cost will not exceed that nec knowingly or recklessly causing damage essary for like construction and use on the same to covered property so as to intimidate premises; regardless of whether the replacement or attempt to control the behavior of an- building or repaired building is located on the other person. same or at different premises. It we pay a claim under this provision 8.b., our 3. Loss Settlement. Under Form HO 0006, item b.(2) is payment to the "insured" is limited to that deleted and replaced by the following: "insured's" insurable interest in the property. In no event will we pay more than the Limit of Li- (2) If the damage is not repaired or replaced within a reasonable time, at actual cash value but not ability. more than the amount required to repair or re- (This is exclusion 1.h. in form HO 0003.) place. SECTION I - CONDITIONS 9. Our option is deleted and replaced by the following: 2. Your Duties After loss. Under all Forms, item 2.a. is 9. Our Option. We may repair or replace any part of the deleted and replaced by the following: damaged property with like property it we give you a. Give prompt notice to us or our agent except for written notice of our intention to do so within 15 work - loss caused by wind or hail, ing days after we receive your signed, sworn proof of (1) Special wind or hail loss notice provision: loss. SECTION it • LIABILITY COVERAGES (a) Give notice to us or our agent for loss caused by wind or hail within one year after Item 1, Coverage E - Personal Liability is deleted and re- the date of the loss. placed by the following: (b) We will not pay for loss caused by wind or 1. Pay up to our limit of liability for the damages for which hail unless notice is given to us or our agent the "insured" is legally liable; and within one year after the date of loss. Under Coverage F - Medical Payments to Others: Under 3. Loss Settlement in Forms HO 0002 and HO 0003, Medical expenses do not include expenses for funeral ser- item b.(1) is deleted and replaced by the following: vices. b. Buildings under Coverage A or 8 at replacement cost SECTION 11 - EXCLUSIONS without deduction for depreciation, subject to the Under 1. COVERAGE E - Personal Liability and COVERAGE following: F - Medical Payments to Others, paragraph a. is deleted and (1) If, at the time of loss, the amount of insurance replaced by the following: in this policy on the damaged building is 80% a. Which is expected or intended by one or more "in- or more of the full replacement cost of the sureds "; building immediately before the loss, we will pay the cost to repair or replace, after application of SECTION 11 - ADDITIONAL COVERAGES the deductible and without deduction for depre- Under 1. Claim Expenses, the following paragraph is added: ciation, but not more than the least of the fol- e. Prejudgment interest awarded against the "insured" lowing amounts: on that part of the judgment we pay. Any prejudg- (a) The limit of liability under this policy that ment interest awarded against the "insured" is sub - applies to the building; ject to the applicable Pennsylvania Rules of Civil (b) The replacement cost of that part of the Procedure, building damaged; or SECTIONS I AND 11 - CONDITIONS (c) The necessary amount actually spent to re- 2. Concealment or Fraud is deleted and replaced by the pair or replace the damaged building. following: HO 7137 (08 -10) Page 5 of 7 i Case 1:13 -cv- 02724 -YK Document 1 -3 Filed 11/06/13 Page 32 of 41 POLICY NUMBER 2. Concealment or Fraud, (a) This policy was obtained through material a. Under SECTION I - Property Coverages, with respect misrepresentation, fraudulent statements, to all "insureds" covered under this policy, we pro- omissions or concealment of fact material to vide no coverage for loss under SECTION I - Prop- the acceptance of the risk or to the hazard erty Coverages if, whether before or after a loss, one assumed by us; or more "insureds ": -have: (b) There has been a substantial change -.or -in (1) Intentionally concealed or misrepresented any crease in hazard in the risk assumed by us material fact or circumstance; subsequent to the date the policy was is- (2) Engaged in fraudulent conduct; or sued; (c) There is a substantial increase in hazard in- (3) Made false statements; sured against by reason of willful or negligent relating to this insurance. acts or omissions by the "insured "; b. Under SECTION 11 - Liability Coverages, we do not (d) The "insured" has failed to pay the premium provide coverage to one or more "insureds" who, by the due date, whether payable to us or whether before or after a loss, have: to our agent or under any finance or credit (1) Intentionally concealed or misrepresented any plan; or material factor circumstance; (e) For any other reason approved by the Penn- sylvania Insurance Commissioner. (2) Engaged in fraudulent conduct; or This provision shall not apply if the named "in- (3) Made false statements; sured" has demonstrated by some avert action relating to this insurance. to us or to our agent that the "insured" wishes 5. Cancellation. Paragraph b. is deleted and replaced by the policy to be cancelled. the following: Delivery of such written notice by us to the "in- sured" named in the Declarations at the mailing b. We may cancel this policy only for the reasons address shown in the policy or at a forwarding stated below by notifying the "insured" in writing of address shall be equivalent to mailing, the date cancellation takes effect. This cancellation notice may be delivered to or mailed to the "insured" 6. Nonrenewal is deleted and replaced by the following: named in the Declarations at the •mailing address 6. Nonrenewal. We will not fail to renew this policy except shown in the policy or at a forwarding address. for one of the reasons referred to in the Cancellation Proof of mailing will be sufficient proof of notice. Provision of this endorsement. We may refuse to renew for one of the listed reasons by mailing to the "insured" (1) When this policy has been in effect for less than named in the Declarations at the mailing address shown 60 days and is not a renewal with us, we may in the policy or at a forwarding address, written notice cancel for any reason by notifying the "insured" at least 30 days prior to the expiration date of this pol- named in the Declarations at least 30 days before icy. the cancellation takes effect. This provision does not apply if: (2) When this policy has been in effect for 60 days a, We have indicated our willingness to renew and the or more, or at any time if it is a renewal with "insured" has failed to pay the premium by the due us, we may cancel only for one or more of the date; or following reasons by notifying the "insured" named in the Declarations at least 30 days prior b. The named "insured" has indicated to us or our to the proposed cancellation date: agent that the "insured" does not wish the policy to be renewed. HO 7137 (08 -10) Page 6 of 7 Case 1:13=cv- 02724 -YK Document 1 -3 Filed 11/06/13 Page 33 of 41 POLICY NUMBER Delivery of such written notice by us to the "insured" named (2) Until the end of the policy period shown in the in the Declarations at the mailino address shown in the Declarations, unless your premises and property, policy or at a forwarding address shall be equivalent to covered under the-policy at the time of your mailing, death, is sold prior to that date. 9. Death. Paragraph b. is deleted and the following added: Coverage during the period of time after your death b. Insurance under this policy will continue as provided is subject to all the provisions of this policy including i in (1) or (2) below, whichever is later: payment of any premium due for the policy period shown in the Declarations and any extension of that (1) For 180 days after your death regardless of the period; ' policy period shown in the Declarations, unless c. "Insured" includes: your premises and property, covered under the policy at the time of your death, is sold prior to (1) Any member of your household who is an "in- that date; or sured" at the time of your death, but only while a resident of the "residence premises "; and (2) With respect to your property, the person having proper temporary custody of the property until appointment and qualification of a legal repre- sentative. All other provisions of this policy apply. Includes copyrighted material of ISO Properties, Inc., with its permission, Copyright, ISO Properties Inc., 2006 Motorists Mutual Insurance Company HO 7137 (08 -10) Page 7 of 7 Case 1:13 -cv- 02724 -YK Document 1 -3 Filed 11/06/13 Page 34 of 41 POLICY NUMBER liuM+r essinsurance I t Pennsylvania Notice IL 0910 (01 -81) An Insurance Gompany, its agents, employees, or service Thee. "Insurance Consultation Services Exemption Act" of contractors acting on its behalf, may provide services to Perihstvnia provides that the Insurance Company, its reduce* the likelihood of injury, death or loss. These services agents, employees or service contractors acting on its may include any of the following or related services incident behalf, is not liable for damages from injury, death or loss to the application for, issuance, renewal or continuation of, occurring as a result of any act or omission by any person a policy of insurance: in the furnishing of or the failure to furnish these services. 1. surveys; The Act does not apply: 2, consultation or advice; or 1, if the injury, death or loss occurred during the actual performance of the services and was caused by the 3. inspections. negligence of the insurance company, its agents, employees or service contractors; 2. to consultation services required to be performed under a written service contract not related to a policy of insurance; or 3. If any acts or omissions of the insurance company, its agents, employees or service contractors are judicially determined to constitute a crime, actual malice or gross negligence. Copyright, Insurance Services Office, Inc. IL 0910 (01-$1) Case 1:13 -cv- 02724 -YK Document 1 -3 Filed 11/06/13 Page 35 of 41 POLICY NUMBER Preferred Homeowners Endorsement HO 7140 (12 -05) (Form HO 0002 or HO 0903) THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. The following provisions are added to this policy. SECTION 1 - REPLACEMENT OR REPAIR COST PROTECTION - COVERAGE A - DWELLING We agree to amend the present coverage amounts indicated on the Declarations page in accordance with the following pro- visions, 1. If you have: a, allowed us to adjust the Coverage A limit of Lability and the premium in accordance with: (1) the property evaluations we make; and (2) any increase in inflation; and b. notified us, within 30 days of completion, of any alterations to the dwelling which increase the replacement, cost of the dwelling by 5% or more; and c. elected to repair or replace the damaged building; We will: a. increase the Coverage A limit of liability up to 50% it the amount of loss to the dwelling is more than the limit of liability indicated on the Declarations page. The limits of liability for Coverages B, C and D remain the same as indicated on the Declarations page; b. on the day after the loss adjust the limits of Lability and premium for the remainder of the policy term for Coverages B, C and D by the same percentage increase as applied to Coverage A. 2. If you comply with the provisions of this endorsement and there is a loss to a building insured under Coverage A, Section I Condition 3. Loss Settlement paragraph b. is deleted and replaced by paragraphs b., c. and d. as follows: b. Buildings under Coverage A or B at replacement cost without deduction for depreciation. We will pay no more than the smallest of the following amounts for equivalent construction and use on the same premises: (1) the replacement cost of the building or any parts of it; (2) the amount actually and necessarily spent to repair or replace the building or any parts of it; (3) the applicabie limit of liability whether increased or not, adjusted in accordance with paragraph 1. above. c. We will pay no more than the actual cash value of the damage until actual repair or replacement is completed. d. You may disregard the replacement cost loss settlement provisions and make claim under this policy for loss or damage to buildings on an actual cash value basis and then make claim within 180 days after loss for any additional liability on a replacement cost basis. This coverage does not apply to land, including land on which the dwelling or structures are located. ANIMALS, BIRDS OR FISH We cover animals, birds or fish owned by an insured only while on the insured "residence premises" subject to all policy provisions applicable to Coverage C Personal Property with the following conditions, exceptions and limitations: HO 7140 (12 -05) Page 1 of 3 Case 1:13 -cv- 02724 -YK Document 1 -3 Filed 11/06/13 Page 36 of 41 POLICY NUMBER 1. Except for loss from theft, we cover only the death or necessary destruction of animals, birds or fish, and only when the direct result of a Peril Insured Against, 2. Our limit of liability shall not exceed 5500. 3. We will not cover any loss resulting from vehicles. 4. The provisions in Form HO 0015, if attached, do not apply to this coverage. 5. No deductible applies to this coverage. DEBRIS REMOVAL - TREES, SHRUBS AND OTHER PLANTS We will pay the reasonable expense incurred by you in the removal of debris of trees, shrubs and other plants, from the "residence premises," when the damage is caused by windstorm, hail, or weight of ice, snow or sleet. Our limit of liability for this coverage shall not exceed $500. This coverage applies only when not provided elsewhere in policy forms attached. Any deductible applicable to Section I applies to this coverage, but only one deductible amount shall be applied to each oc- currence. PERSONAL PROPERTY COVERAGE EXTENSION Coverage on personal property described in Coverage C is extended to include the perils of flood, earthquake, landslide, mudflow and collision or overturn of a transporting conveyance only while the property is away from any. premises or location owned by an insured. Our limit of liability for this coverage shall not exceed $1,000. This coverage extension applies only when coverage is not provided elsewhere in the policy forms attached. Any deductible applicable to Section I applies to this coverage. Section I Exclusions 2 and 3 of Form HO 0002 and Section I Exclusions 1.0. and 1.c. of Form HO 0003 do not apply to any coverage that is provided by this coverage extension. POWER INTERRUPTION COVERAGE D - Loss of Use The following item is added: 4, it an interruption of power or other utility service away Irom the "residence premises," caused by a Perii Ensured Against in this policy, makes the "residence premises" uninhabitable, we cover any resulting Additional Living Expense and Fair Rental Value loss for a period of time not exceeding one week during which the "residence premises" is uninhabitable. Coverage commences 48 hours after the "residence premises" is made uninhabitable, The period of time under this item is not limited by expiration of this policy. Section I Exclusion 4 of Form HO 0002 and Section I Exclusion 1.d. of Form HO 0003 do no* apply to coverage provided in this item. PROHIBITED USE COVERAGE D - Loss at Use The following section is added to Item 3: l; a civil authcrity prl you from use of the "residence premises" due to endangerment from a Peril insured Against, we cover any resulling Additional Living Expense and Fair Rental Value loss for a period of time not exceeding one week during which use is prohibited. Coverage commences 48 hours after use has been prohibited. HO 7140 (12 -05) Page 2 of 3 Case 1:13 -cv- 02724 -YK Document 1 -3 Filed 11/06/13 Page 37 of 41 POLICY NUMBER REFRIGERATED PROPERTY We insure, up to $500, covered property stored in freezers or refrigerators on the "residence premises" for direct loss caused by: 1. Interruption of electrical service to the refrigeration unit. The interruption must be caused by damage to the generating or transmitting equipment; or 2, Mechanical failure of the unit storing the property. Coverage will apply only if you have maintained the refrigeration unit in proper working condition immediately prior to the loss. This coverage does not increase the limit of liability for Coverage C • Personal Property. The Section I • Power Failure exclusion does not apply to this coverage. Special Deductible The following deductible applies to covered loss to refrigerated property: We will pay only that part of the loss that exceeds 5100. No other deductible applies to this coverage. SECTION II PERSONAL INJURY COVERAGE E - Personal Liability The definition of "bodily injury" is amended to include personal injury. "Personal injury" means injury arising out of one or more of the following offenses: a. false arrest, detention or imprisonment, or malicious prosecution; b. libel, slander, or defamation of character; or e. invasion of privacy, wrongful eviction, or wrongful entry. Section it Exclusions do not apply to personal injury. Personal injury insurance does not apply to: a. liability assumed by the "insured" under any contract or agreement except any indemnity obligation assumed by the "in- sured" under a written contract directly relating to the ownership, maintenance or use of the premises; b. injury caused by z violation of a penal law or ordinance committed by or with the knowledge or consent of an "insured;" C. injury sustained by any person as a result of an offense directly or indirectly related to the employment of this person by the "insured d. injury arising out of or in connection with a "business" engaged in by an "insured." This exclusion applies but is not limited to an act or omission, regardless of its nature or circumstance, involving a service or duty rendered, promised. owed, or implied to be provided because of the nature of the "business "; e. civic or public activities performed for pay by an "insured ", or f. injury to you or an "insured" within the meaning of part a. or b. of "insured" as defined. Additional Coverage Under Section II - Liability Coverages, the detinnion of "insured location" Is extended to include a Time -Share residence owned by ano deeded to the Named Insured. Also, any residence or similar joint ownership Time -Share interest that may be traded or transferred as a form of Time-Share interest, shall also be included in the definition of "insured location." With respect to the deeded Time -Share premises, Exclusion t.c under Section II - Exclusions - Coverage E - Personal Liability and Coverage F • Medical Payments to Others, does not appty. 101otorists Mutual Insurance Company HO 11140 (1?-05) Page 3 of 3 Case 1:13 -cv- 02724 -YK Document 1 -3 Filed 11/06/13 Page 38 of 41 POLICY NUMBER Premises Alarm or HO 7416 (04 -02) Fire Protection System For a premium credit,.or to qualify for your Homeowners program, we acknowledge the installation of an alarm system or automatic sprinkler system approved by us on the "residence premises." You agree to maintain this system in working -orde'r and to let us know promptly of any change made to the system or if it is removed. Includes copyrighted material of Insurance Services Office, Inc., with its permission Copyright, Insurance Services Office, Inc., 1990 Motorists Mutual Insurance Company Case 1:13 -cv- 02724 -YK Document 1 -3 Filed 11/06/13 Page 39 of 41 POLICY NUMBER Personal Property Replacement Cost - HO 7363 (01 -95) Pennsylvania SECTION i 2. REPLACEMENT COST For an additional premium, covered losses to the following The following loss settlement procedure applies to all property are settled at replacement cost at the time of loss: property insured under this endorsement: a. Coverage C - Personal Property: a. We will pay no more than the least of the fol- b. If covered in this policy, awnings, carpeting, house- lowing amounts: hold appliances, outdoor antennas and outdoor (1) Replacement cost at the time of loss without equipment, whether or not attached to buildings. deduction for depreciation; Personal Property Replacement Cost coverage will also apply (2) The full cost of repair at the time of foss; to the following articles or classes of property if they are separately described and specifically insured in this policy: (3) The limit of liability that applies to Coverage a. Jewelry: C, if applicable; b. Furs and garments trimmed with fur or consisting (4) Any applicable special limits of liability stated g in this policy; or principally of fur; (5) For loss to any item separately described and titles of equipment; c. Cameras, protection machines, films and related ar- specifically insured in this policy, the limit of liability that applies to the item. d. Musical equipment and related articles of equipment; b. When the replacement cost for the entire loss e. Silverware, silver- plated ware, goldware, gold - plated under this endorsement is more than $1,000, ware and pewterware, but excluding pens, pencils, we will pay no more than the actual cash value flasks, smoking implements or jewelry; and for the loss or damage until the actual repair or f. Golfer's equipment meaning golf clubs, golf clothing replacement is complete. and golf equipment. If the actual cash value amount is insufficient to Personal Property Replacement Cost coverage will not initiate repair or replacement of the lost or apply to other classes of property separately described damaged property, we will advance to you the and specifically insured, amount necessary for you to initiate such repair 1. PROPERTY NOT ELIGIBLE or replacement and such further amounts nec- essary to continue the repair or replacement. The Property listed below is not eligible for replacement cost amount of loss payment we agree upon for the settlement. Any loss will be settled at actual cash value lost or damaged property will be reduced by any at the time of loss but not more than the amount re- advance payment. The total of all advances and quired to repair or replace. other payments hereunder will not exceed the a. Antiques, fine arts, paintings and similar articles amount allowed under 2.a. of rarity or antiquity which cannot be replaced. Under this loss settlement procedure, the fol- b. Memorabilia, souvenirs, coliectors items and sim- lowing special provisions apply: ilar articles whose age or history contribute to their value. (1) You shall promptly forward to us evidence of the agreement with the party repairing or c. Articles not maintained in good or workable replacing the property which shows the cost condition. and estimated completion date of the re- d. Articles that are outdated or obsolete and are paired property or delivery date of the re- stored or not being used. placed property. NO 7363 (01 -95) Page 1 of 2 Case 1:13 -cv- 02724 -YK Document 1 -3 Filed 11 %06/13 Page 40 of 41 POUGY NUMBER (2) We will send to you the balance, if any, of c. You may make a claim for loss on an actual the loss payment previously agreed upon cash value basis and then make claim within 180 when you notify us of the completion of the days after the loss for any additional liability in repairs or the expected delivery date of the accordance with this endorsement. replaced property. All other provisions of this policy apply. (3) If you do not comply with the above terms at any time, we will pay no more than the actual cash value for the loss or damage. In such case, if the amount we advanced to you is more than the actual cash value, you shall refund the difference to us within 30 days of the date we mail our refund notice to you. Includes copyrighted material of Insurance Services Office. Inc. with its permission. Copyright, Insurance Services Office, Inc., 1992 Motorists Mutual Insurance Company HO 7363 (01.95) Page 2 of 2 Case 1:13 -cv- 02724 -YK Document 1 -3 Filed 11/06/13 Page 41 of 41 PoUCY Kuae$ER Inffatio:n Protection Endorsement HO 7123 (01 -95) Homeowners Policy THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. We will adjust the limits of liability shown in the Declarations for Coverages A, B, C and D as reflected by the change in the Residential Construction Cost Index furnished by E. H. Boeckh Co., but only when current coverage limits increase as a result of the change. We will determine policy limits on a specific date by multiplying the limits of liability by a change factor. The factor is cal- culated by dividing the latest available index applicable at the time the Coverage A amount was last adjusted. At no time will we reduce the limits of liability to amounts less than those shown in the Declarations. All other provisions of this policy apply. Motorists Mutual Insurance Company Case 1:13 -cv- 02724 -YK Document 1 -4 Filed 11/06/13 Page 1 of 2 The Motorists Insurance r oup, Y ou kn use P.O. Box ;32473, Columbus, Ohio 435213 -2476 � wwva.riatorslsgroup , com +` Ml ar uh 26, 20.13 f s t i SC071' FARREEI.L 5 HILLTOP C:IR s CARL.'ISLF, PA, i - 7013 Clai:-n number 5f!tif73 I:r.•surud SCOT:t POZ:JZ. ?,3.:I.,I!K ITt.,T?;1__NFALRR111 .., Date of oce irrclzce 03/20/201.3 f Dear "Mr, 1'azrell, T his w ill ackno wIedge'recta')t of iflo (,oillplaint:[]le'd e 7 ans you, h' l 1f.hloci1, and i :u' :end f; l� f� i t )4 t '1 :SC'vtt JI'. I1 ! ' - .>c {. 1! County Court of Pennsylvarr_a. W , mist tdVis� )'Gli tl - at' whil.e .Mot'orists 1�' u-tu it hill be provid- i.il. for your defonsc., tiler:. a ?'� alittgations Rsserted and damages i'cgwl stcd in the Complaint for which, if pirovcn. there sla be no coverage available t.hrougll. the Policy of insurallca that Motorists Mutual issued to you. Allcfations of acglipne.c amy not be subject to covemge through thu policy of insurn.r= far there a.ro - achisionfary provisions 'within the pol.iey of ilisunuice and its arfiendfltoiry endo.tsuni.entS that m cnIu,fe all o-. a 17o.rtion ol, tresc cblirrls. Directing your attention to tlj.c policy of i.nstirance, the Haineowners Coverage Form HO 00 (04 /91), it provides: Secbon II- Liability C;ovc Ifa dai.al iS made or a suit is :1.1'otight <.igilins't an "hisured" for Clfll :i]ages hooa Li'JC o 'bndil li ?lury" or property da na4?e' C:alse:l by an. � to whic t11.io covorago applic3, 1, +c; w11 1. Pay up to our limit of liabl ily far the d.arnages for which the "insw is legally liable. i?4;1ia! e s include prf:luCt inter st awmled atia'inst the "insured "; and �. P ovide a clefemse at 0"ar cwp'en :sc 1 counsel of our choice, Cven i f the shit !s ground,1 ±S55, false or W"' Inly investigate clul settle any c1. :1.im or suit that',vo dcx idc, is appropriate.. (}ur duty to suitic or defend mr& \•v11l;1'1 111E amount we pay fe?r dinvi -es iresul,tU from the occlirie cc" colds nu limit of liability. is Suction H- l XC1tiS :0; :1 F lc. i\ i` IS11iS�l�t; t' fofSG}: UGtl.. ilt0! E: St' 2. fiC' li., co1 poralpalllS} ilTleiitoz'}? .l :YS1CdlO.Ci11G11tiLia.lJlltie; 7ho Molon:as InllurpnCr. crow rdu:c:raa tn­ancn .:rmp rr; hi ^'nrrL ^ ^, i;,>u.urerraal F:1uUinl hcuran ^. ^_ Cnrt,pory W:I,mn I•du!aal Ir „;U!;v,cc Cglppa:,v M1mvu !.! !rwanhocu Company Ab: ort ^.tu L @e In;:::r.."rc S man Saor.l f komgc. LLO Vern A.none.^.0 inournn o CoKi,cn F1('G I n : : :rncn (fin :pnm ?Iron!. Muwu ''I r :nswc� o C EXHIBIT Case 1:13 -cv- 02724 -YK Document 1 -4 Filed 11/06/13 Page 2 of 2 I i r Recognizing that a';l others terms and con.ditioils under l \'IotcxiS[;; MrIIttlril policy 716 nuid any POH608 plYwiolWy m subsequently issued in • you• nalrle by Mott)nst's Mutual shall be a.ppl.icabjc and .LIi.Chang't Ct wh ebeiwhe pDAded by MC')torhgs MutLlal. As $l1CIL Motoris%S h/IL tr.ai Wii1 not W ive Y any of' terms of cond1tionS O:' tllc a - o?einciat1(l11 d policy or 8iiy P:evi()'us Or sal)sequent `x)ljoies tiiat :r'ToLo!7sts Mutual i]£is issuod in your na i�/fotori.sts TAUtual wi.il cC)'.I:il,inlle to rtes rvc it's rights wit regarCi to as';Li'('iC n's ar!.d /or defonscs 1111(1er t' 1le iei'ills, COl'iClitlOi1.S mid dCf.lTlit,ons Of die POli.cy Sued to In the eveilt tiia' it. is d.BtcrZllilled that Sonic or a ofthe claims asswed hi die eo):i"!t;t<"ja ere not covcmd, ti9:ot:or.ists Muiu�il expressly reserves 'it right to all(.)cain betw - n coverexi aril r1U11- CU';';reCl Ilii. }'riiui1t5 :)` Settlement, jud"11lentS, c1e'i'en.st:11= and casts and, to seek. reim. ursemcnt frmrr you. 'VO paymc.nL;S by \'"IOtol7Sts MY Y 'Of Sect ?E: ?11L ".i:1:, judgments, defense J1ee.S a ?1d COStS Slli Sl U:in;+tl.t:1''e :? t,J<._VC',r L.f Sls I Mutual's right to iatca seek allocation and reinhumeixima o;: Bitch settle ?t, juc rr:;: iits def'e,.se :Pc,:s ai;(? COstS On Ge P'Cl.i lds t:h.<1t t]]P.i't: k no Any to dekend or indeinnify all :)r i). 7Urt.ioli oJ: - I - , , e ac.'Llon. i`rlotC1r751:S l\'Utual Will piucceii'y'.7th the u11C {C'.ISt2Tyog that It does not `vaive ail£ of the j);`C.)ViS1i);iS UY G` {'V'IiSCS, 1 , 1- 10toristS MLitual reserves its right to Witlldn' -ow fi the hailcll..ing of dos IhiE lon at any time, lie:wo o'.' after judg'iri®nt, if it i CieteriniLled that coverage is !lot 2VuilaI)IC or offered Ulider the po i.Cy O i''?SL`<ranec issued ii1 your, 1it11:i ?e• Accor dingly, 1N lotorists Mutual reserves its right t::? Seek judi.-::ic 1. C1Ctc',1'TIli3'l ti01 of its Oali�;itioi' L'i1(lh'7' t.11C •i).11C) +. By utidertalClll9 ilT1V aCt1Oi: that Motorists. M L ?tUill kenir, :i 1v'lolorists IVluri! ;} docs..not waive any (i 7.fense'io coverage that may exist. to this Clclimundei chct p'dicy oi' the law, rviie:thcr assarted herain or not. Motor1StS l - Iutlliil does not "vaivc any det''e.F1SC to e0vcreq riot herein c11)d n assel L IY Such d". "f'CIlSc at ally tine. (..1(d111L1 t'.h i; t1.teCe'_'S X,lc "h�ita pci'S(7l)81 CXUOSIii'C 11'G V;011ld hC ?'CT.n1SS 1.i a'C: C1;Cl :iC.)I, aCal'iSC yQLI Of its !'l;;llt 10 rCtc11:i1 j:!i':rSOi1£il Ct)L1l1:iC.l, a1' 'y'C'`l:l:l' UV;'n c)C1)(:p.SC t0 rb'I)'i'eSellt Y011I' 7nt.C' ?'C:St'1�llt }? .CCSI)CC,t IC ai-ly po,rson ll. exposur C not CUv(*1H Under the 1)olivy U;C Il1S1L: il]l' 8. �VI'li. }C y()t1 al'` [! 1C1 G1' P,G Opligi:tlU'il t'C dU St`i should you choose to e ?l,j£;ge, lu;rsonal counsl%i, Nye assuni you omt: be auo,e, U,L I`;t'iSL "> i\R,,M i1aF rCClueStcd to provide for its t 1CI)Si3 wit respect to His 5p(Sa1no hyquh 4Vtl.l l.l C'.(')Oi;`c 1ihh cLly a.tto:.aey Lhat yoli nnay cn €•agc. i Should you have wily luesdoSlS ()r Collocril , please do 1101• Hesitate to COn.tact'lie ilililei'Si'; ?l1e(t. 1.. Sincei l:ly, Motorists Mutaa] Tnsurance Cornmpaoiy 'l "i2.I Y' ITENT?UA.'R STAFF AT'T'ORNF �' (614) 220 -6934 01: (800) 876 -8765 ON: (866) 790 -6431. ' I'Rf.. Y'.l r,MO',rORIS'1'SC J Benjamin D. Andreozzi Attorney ID #89271 ANDREOZZI & ASSOCIATES, P.C. 215 Pine St., Ste. 200 Harrisburg, PA 17101 717 -525 -9124 Ben@victimscivilattorneys.com Attorney for Plaintiff MOTORISTS MUTUAL INSURANCE COMPANY, Plaintiff vs. SCOTT FARRELL, SR., and KATHLEEN FARRELL and SCOTT FARRELL, JR. and E.G., a minor by J.G. and S.G. her parents and natural guardians. Defendants i of It APE 10 AM I1: 48 CUMBERLAND COUNT PENNSYLVANIA IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY CIVIL ACTION NO. 14 -1818 Civil NOTICE TO PLEAD TO: MOTORISTS MUTUAL INSURANCE COMPANY c/o Stephen A. Scheuerle, Esquire Charles L. McNabb, Esquire Hohn & Scheuerle 1700 Market Street, Suite 3242 Philadelphia, PA 19103 YOU are hereby notified and required to plead to the within New Matter within twenty (20) days from the date of service thereof or a judgment may be entered against you. Andreozzi & Associates, P.C. BY: Benj .. in D ndreozzi, Esquire Att • or Defendant E.G. Benjamin D. Andreozzi Attorney ID #89271 ANDREOZZI & ASSOCIATES, P.C. 215 Pine St., Ste. 200 Harrisburg, PA 17101 717 -525 -9124 Ben @victimscivilattorneys.com Attorney for Plaintiff MOTORISTS MUTUAL INSURANCE COMPANY, Plaintiff vs. SCOTT FARRELL, SR., and KATHLEEN FARRELL and SCOTT FARRELL, JR. and E.G., a minor by J.G. and S.G. her parents and natural guardians. Defendants IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY CIVIL ACTION NO. 14 -1818 Civil DEFENDANT E.G.'S ANSWER TO PLAINTIFF'S COMPLAINT FOR DECLARATORY JUDGMENT WITH NEW MATTER AND NOW comes Defendant E.G., a minor by J.G. and S.G., her parents and natural guardians, by and through their attorneys, Andreozzi & Associates, P.C. and responds to Plaintiffs Complaint for Declaratory Judgment as follows: 1. Defendant E.G. is without information sufficient to form a belief as to the truth of the averments in Paragraph 1. Thus, they are denied. 2. Admitted upon information and belief. 3. Admitted. 4. It is admitted that Plaintiff filed this action seeking declaratory judgment pursuant to Pa. R.C.P. 1601. Defendant E.G. denies that Plaintiff is entitled to declaratory judgment in its favor. 5. The Complaint is a document that speaks for itself. Thus, no response is required. 6. The Complaint is a document that speaks for itself. Thus, no response is required. 7. The Complaint is a document that speaks for itself. Thus, no response is required. 8. Defendant E.G. is without information sufficient to form a belief as to the truth of the averments in Paragraph 8. Thus, they are denied. 9. The Motorist policy is a document that speaks for itself. Thus, no response is required. By way of further answer, Defendant E.G. is without sufficient information to form a belief as to the truth of the remaining averments in Paragraph 9. Thus, they are denied. 10. The averments in Paragraph 10 contain conclusions of law to which no response is required. To the extent that a response is required, the averments are denied. 11. Defendant E.G. is without information sufficient to form a belief as to the truth of the averments in Paragraph 11. Thus, they are denied. 12. The Motorist policy is a document that speaks for itself. Thus, no response is required. To the extent that a response is required, the averments are denied. 13. The averments in Paragraph 15 contain Plaintiffs unsupported conclusions of law to which no response is required. To the extent that a response is required, the averments are denied. NEW MATTER 14. The responses set forth in the preceding paragraphs are incorporated by reference as if set forth at length. 15. The exclusions cited by Motorists in Paragraph 12 of its Complaint are not applicable to the facts of the underlying Complaint that was filed by Defendant E.G. 16. Motorists is legally required to defend and indemnify Defendants Scott Farrell, Sr., Kathleen Farrell, and Scott Farrell Jr. because there are no exclusions in the applicable policy that would preclude them from defending and indemnifying Defendants. 17. Motorists cannot deny coverage based on the exclusions cited in Paragraph 12 of its Complaint because Defendant E.G. has alleged negligent conduct on the part of all of the Farrel ls rather than intentional conduct. 18. The policy exclusions cited in Paragraph 12 of Plaintiffs Complaint are ambiguous. 19. The policy exclusions cited in Paragraph 12 of Plaintiffs Complaint do not apply to the allegations in the underlying Complaint that was filed by Defendant E.G. 20. Defendant Scott Farrell, Jr. did not commit an intentional act as defined by the exclusions cited in Paragraph 12 of Plaintiffs Complaint. 21. The conduct that is alleged in the underling Complaint that was filed by Defendant E.G. does not constitute sexual molestation, corporate punishment, or physical or mental abuse by the insured as defined by the exclusion cited in Paragraph 12 of Plaintiff's Complaint. 22. The Motorists insurance policy, including any relevant exclusions applies separately to each insured as set forth in Section H - Conditions, Paragraph 2. Therefore, even if Defendant Scott Farrell, Jr.'s actions are deemed intentional, Plaintiff would still be legally required to defend and indemnify Scott Farrell, Sr. and Kathleen Farrell due to the separation of each insured. WHEREFORE, Defendant E.G., a minor by J.G. and S.G., her parents and natural guardians, respectfully requests that this Honorable Court dismiss Plaintiffs Declaratory Complaint with prejudice. Date: Respectfully Submitted, ANDREOZZI SSOCIN S, P.C. By: Benjamin BenjaminD. Attorney ID 215 Pine St., . 200 Harrisburg, PA 17101 p: (717) 525-9124 f: (717) 525-9143 Attorney for Defendant E.G. Benjamin D. Andreozzi Attorney ID #89271 ANDREOZZI & ASSOCIATES, P.C. 215 Pine St., Ste. 200 Harrisburg, PA 17101 717-525-9124 Ben@victimscivilattorneys.com Attorney for Defendant E.G. MOTORISTS MUTUAL INSURANCE COMPANY, IN THE COURT OF COMMON PLEAS Plaintiff OF CUMBERLAND COUNTY VS. SCOTT FARRELL, SR., and KATHLEEN FARRELL and SCOTT FARRELL, JR. and E.G., a minor by J.G. and S.G. her parents and natural guardians. Defendants CERTIFICATE OF SERVICE CIVIL ACTION NO. 14-1818 Civil I, Benjamin D. Andreozzi, Esquire, hereby state that I have this day caused to be served a true and correct copy of E.G.'s Answer to Plaintiff's Complaint for Declaratory Judgment with New Matter to all counsel of interest at the addresses below named, by U.S. Mail, First-Class, postage prepaid: Stephen A. Scheuerle, Esquire Charles L. McNabb, Esquire Hohn & Scheuerle 1700 Market Street, Ste 3242 Philadelphia, PA 19103 Date: LIM By: Thomas E. Brenner, Esquire Goldberg Katzman, P.C. 4250 Crums Mill Road, Ste 301 P.O. Box 6991 Harrisburg, PA 17112 Benjamin Andreozzi, Esquire BY: STEPHEN A. SCHEUERLE, ESQUIRE SSCHEUERLE(&,DVERDICT.COM Identification No.: 38558 BY: CHARLES L. McNABB, ESQUIRE CMCNABB(&DVERDICT.COM Identification No.: 60494 HOHN & SCHEUERLE Suite 3242 1700 Market Street Philadelphia, PA 19103 215-496-9995 215-496-9997 (Fax) Our File #3500-88 THONO 7-x2, APR 24 PI 2: 13U11BERL A ND 17 PENNSYLVANIA COUt Attorneys for Plaintiff, Motorist Mutual Insurance Company MOTORISTS MUTUAL INSURANCE COMPANY Plaintiff, V. SCOTT FARRELL, SR., and KATHLEEN FARRELL and SCOTT FARRELL, JR. and E. G., a minor, by J. G. and S. G., her parents and natural guardians. Defendants. COURT OF COMMON PLEAS CUMBERLAND COUNTY CIVIL ACTION NO. 14-1818 PLAINTIFF, MOTORISTS MUTUAL INSURANCE COMPANY'S RESPONSE TO DEFENDANT. E.G.'S NEW MATTER 14. Plaintiff incorporates herein the allegations of its Complaint as though the same were fully set forth at length. 15. Denied. The exclusions set forth in Plaintiff's Complaint are applicable to the facts of the underlying case. 16. Denied. The exclusions set forth in the policy of insurance issued to the Farrell defendants by Plaintiff vitiate any obligation on the Plaintiff's part to defend and indemnify them. 17. Denied. Said allegations of negligence are irrelevant in light of the facts of this case and said exclusions. 18. Denied. Said exclusions are not ambiguous. 19. Denied. Said exclusions are directly applicable to the allegations contained in Plaintiff's Complaint. 20. Denied. Said defendant's acts were intentional as a matter of law. 21. Denied. The allegations of defendant, E.G.'s complaint directly contradict her New Matter. 22. Denied. The exclusions contained in the policy of insurance issued to the Farrell defendants vitiate any obligation to provide them with a defense or indemnification under the facts of this case and the law of this Commonwealth. WHEREFORE, Plaintiff, Motorists Mutual Insurance Company, respectfully request that Defendant, E.G.'s New Matter be denied. HOHN & SCHEUE S L. MCNABB, ESQUIRE Attorney for Plaintiff, Motorists Mutual Insurance Company BY: STEPHEN A. SCHEUERLE, ESQUIRE SSCHEUERLE(u,DVERDICT.COM Identification No.: 38558 BY: CHARLES L. McNABB, ESQUIRE CMCNABB@DVERDICT.COM Identification No.: 60494 HOHN & SCHEUERLE Suite 3242 1700 Market Street Philadelphia, PA 19103 215- 496 -9995 215 - 496 -9997 (Fax) Our File #3500 -88 Attorneys for Plaintiff, Motorist Mutual Insurance Company MOTORISTS MUTUAL INSURANCE COMPANY Plaintiff, v. SCOTT FARRELL, SR., and KATHLEEN FARRELL and SCOTT FARRELL, JR. and E. G., a minor, by J. G. and S. G., her parents and natural guardians. Defendants. COURT OF COMMON PLEAS CUMBERLAND COUNTY CIVIL ACTION NO. 14 -1818 CERTIFICATE OF SERVICE I, Charles L. McNabb, Esquire, certify that a true and correct copy of Plaintiffs Response to Defendant, E.G.'s New Matter was sent to counsel named below by U.S. Mail, postage prepaid: Benjamin D. Andreozzi, Esquire Andreozzi & Associates, P.C. 215 Pine Street Suite 200 Harrisburg, PA 17101 Date: /d` ('1.1 Thomas E. Brennan, Esquire Goldberg, Katzman, P.C. 4250 Crums Mill Road Suite 301 Harrisburg, PA 17112 By: Charles L. McNabb, Esquire Attorney for Plaintiff IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANhA Motorists Mutual Insurance Company ' fi�'1��RL ,i'4Q COU Plaintiff f tNNSYLVA 4 v. : No.: 14-1818 Civil Scott Farrell, Sr., and Kathleen Farrell, and Scott Farrell, Jr. and E.G., a minor by J.G. and S.G., her parents and natural Guardians, Defendants NOTICE TO PLEAD TO: Stephen A. Scheuerle, Esquire Charles L. McNabb, Esquire Hohn & Scheuerle 1700 Market Street, Suite 3242 Philadelphia, PA 19103 You are hereby notified to file a written response to the enclosed New Matter within twenty (20) days from service hereof or a default judgment may be entered against you. Date: 4(30 r4 {00695521;v1} '1�rnas E. Brenner, Esquire Attorney ID No. 32085 P.O. Box 6991 Harrisburg, PA 17112 (717)234-4161 Thomas E. Brenner, Esquire GOLDBERG KATZMAN, P.C. 4250 Crums Mill Road, Ste. 301 P. O. Box 6991 Harrisburg, PA 17112 (717) 234-4161 Attorney for Defendants IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA Motorists Mutual Insurance Company Plaintiff v. : No.: 14-1818 Civil Scott Farrell, Sr., and Kathleen Farrell, and Scott Farrell, Jr. and E.G., a minor by J.G. and S.G., her parents and natural Guardians, Defendants ANSWER TO DECLARATORY JUDGMENT COMPLAINT AND NOW, come Defendants by and through its attorneys, Goldberg Katzman, P.C., who states: 1. Admitted. 2. Admitted. 3. Admitted. 4. Admitted. 5. Denied as stated. The Complaint is a document which speaks for itself. 6. Denied. This paragraph seeks to incorporate averments of the Complaint which speaks for itself. 7. Denied. This paragraph seeks to incorporate averments of the Complaint which speaks for itself. {00695521;v1} 8. Admitted. 9. Admitted. 10. Admitted. 11. Admitted. 12. Denied. The Motorists' policy is a document which speaks for itself 13. Denied. This paragraph contains unsupported conclusions of law. WHEREFORE, Defendants Farrell request that Plaintiff's Declaratory Judgment Complaint be dismissed with prejudice. NEW MATTER 14. Plaintiff's Complaint fails to state a basis for declaratory relief 15. The exclusions cited by Motorists are not applicable to the facts of the case. 16. Motorist is required, pursuant to the policy in force, to defend and indemnify the Farrells in the E.G. litigation. 17. The Motorist policy exclusions are ambiguous. 18. The interaction between Scott Farrell, Jr. and E.G. was not intentional, conducted or intended to cause bodily injury. 19. The interaction between Scott Farrell, Jr. and E.G. was not sexual molestation, corporal punishment or physical or mental abuse. 20. Pursuant to the Motorist policy in Section II — condition (pp. 16-17), the insurance coverage in severable and the determination of coverage must be made separately for Scott Farrell, Sr., Kathleen Farrell and Scott Farrell, Jr. {00695521;v1} 21. The factual averments of the Amended Complaint of E.G. against Scott Farrell, Sr. and Kathleen Farrell for failure to warn and supervise are claims covered under the Motorist policy. 22. The factual averments of the Amended Complaint of E.G. against Scott Farrell, Jr. of negligence are covered under the Motorist policy. WHEREFORE, Defendants Farrell request that Plaintiff's Declaratory Judgment Complaint be dismissed with prejudice. By: Date: 4 3k {00695521;v1} GOLDBERG KATZMAN, P.C. Thomas . renner, Esquire Atty No.: 32085 4250 Crums Mill Road, Ste, 301 P.O. Box 6991 Harrisburg, PA 17112 (717) 234-4161 (717) 234-6808 (facsimile) Attorney for Defendants VERIFICATION We, Scott Farrell, Sr., Kathleen Farrell and Scott Farrell, Jr. hereby acknowledge that we have read the foregoing document and that the facts stated therein are true and correct to the best of my knowledge, information and belief. We understand that any false statements herein are made subject to penalties of 18 Pa. C.S. Section 4904, relating to unsworn falsification to authorities. By: Scott Farrell, Sr. „„Q.p By: Date: {00695521;v1} Kathleen Farrell CERTIFICATE OF SERVICE I hereby certify that I am this date serving a copy of the foregoing document upon the person(s) and in the manner indicated below, which service satisfies the requirements of the Pennsylvania Rules of Civil Procedure, by depositing a copy of same in the United States Mail, with first-class postage, prepaid as follows: Stephen A. Scheuerle, Esquire Charles L. McNabb, Esquire Hohn & Scheuerle 1700 Market Street Suite 3242 Philadelphia, PA 19103 Benjamin D. Andreozzi, Esquire Andreozzi & Associates, P.C. 215 Pine Street Suite 200 Harrisburg, PA 17101 By: Date: 5(t t'C {00695521;v1} Thomas Brenner, Esquire BY: STEPHEN A. SCHEUERLE, ESQUIRE SSCHEUERLE(&,DV.ERDICT.COM Identification No.: 38558 BY: CHARLES L. McNABB, ESQUIRE CMCNABB@DVERDICT.COM Identification No.: 60494 HOHN & SCHEUERLE Suite 3242 1700 Market Street Philadelphia, PA 19103 215-496-9995 Attorneys for Plaintiff, 215-496-9997 (Fax) Motorist Mutual Insurance Company Our File #3500-88 MOTORISTS MUTUAL INSURANCE COMPANY Plaintiff, v. SCOTT FARRELL, SR., and KATHLEEN FARRELL and SCOTT FARRELL, JR. and E. G., a minor, by J. G. and S. G., her parents and natural guardians. Defendants. COURT OF COMMON PLEAS CUMBERLAND COUNTY CIVIL ACTION NO. 14-1818 PLAINTIFF, MOTORISTS MUTUAL INSURANCE COMPANY'S RESPONSE TO DEFENDANTS, FARRELL'S NEW MATTER 14. Plaintiff incorporates herein the allegations of its Complaint as though the same were fully set forth at length. Defendants' allegations are conclusions of law to which no responsive pleading is required. 15. Denied. The exclusions set forth in Plaintiffs Complaint are applicable to the facts of the underlying case. or. 16. Denied. The exclusions set forth in the policy of insurance issued to the Farrell defendants by Plaintiff vitiate any obligation on the Plaintiff's part to defend and indemnify them. 17. Denied. Said exclusions are not ambiguous. 18. Denied. Said defendants acts were intentional as a matter of law. 19. Denied. The allegations E.G.'s Complaint make it clear that all of her claims arise out of sexual molestation. 20. Denied. The exclusions contained in the policy of insurance issued to the Farrell Defendants vitiate any obligation to provide them with a defense and indemnification under the facts of this case and the law of this Commonwealth. 21. Denied. Said averments are not covered under the policy at issue. 22. Denied. The claims set forth in E.G.'s Amended Complaint against Defendant are not covered by the policy at issue. WHEREFORE, Plaintiff, Motorists Mutual Insurance Company, respectfully request that the Farrell Defendant's New Matter be denied. HOHN & SCHEUERLE CH A ' ITNABB, ESQUIRE Attorney for Plaintiff, Motorists Mutual Insurance Company BY: STEPHEN A. SCHEUERLE, ESQUIRE SSCHEUERLE(&,DVERDICT.COM Identification No.: 38558 BY: CHARLES L. McNABB, ESQUIRE CMCNABB@DVERDICT.COM Identification No.: 60494 HOHN & SCHEUERLE Suite 3242 1700 Market Street Philadelphia, PA 19103 215-496-9995 215-496-9997 (Fax) Our File #3500-88 Attorneys for Plaintiff, Motorist Mutual Insurance Company MOTORISTS MUTUAL • INSURANCE COMPANY • Plaintiff, v. SCOTT FARRELL, SR., and KATHLEEN FARRELL and SCOTT FARRELL, JR. and E. G., a minor, by J. G. and S. G., her parents and natural guardians. Defendants. COURT OF COMMON PLEAS CUMBERLAND COUNTY CIVIL ACTION NO. 14-1818 CERTIFICATE OF SERVICE I, Charles L. McNabb, Esquire, certify that a true and correct copy of Plaintiffs Response to Farrell Defendant's New Matter was sent to counsel named below by U.S. Mail, postage prepaid: Benjamin D. Andreozzi, Esquire Andreozzi & Associates, P.C. 215 Pine Street Suite 200 Harrisburg, PA 17101 Date: Thomas E. Brennan, Esquire Goldberg, Katzman, P.C. 4250 Crums Mill Road Suite 301 Harrisburg, PA 17112 By: Charles L. McNabb, Esquire Attorney for Plaintiff BY: STEPHEN A. SCHEUERLE, ESQUIRE SSCHEUERLE(cDVERDICT.COM Identification No.: 38558 BY: CHARLES L. McNABB, ESQUIRE CMCNABB(&,DVERDICT.COM Identification No.: 60494 HOHN & SCHEUERLE Suite 3242 1700 Market Street Philadelphia, PA 19103 215-496-9997 (Fax) Our File #3500-88 nvl rtetfl7 CUNBERL PENNSY1, D AN/ , f��A��T; Attorneys for Plaintiff, Motorists Mutual Insurance Company MOTORISTS MUTUAL INSURANCE COMPANY Plaintiff, v. SCOTT FARRELL, SR., and KATHLEEN FARRELL and SCOTT FARRELL, JR. and E. G., a minor, by J. G. and S. G., her parents and natural guardians. Defendants. COURT OF COMMON PLEAS CUMBERLAND COUNTY CIVIL ACTION NO.: 14-1818 PLAINTIFF, MOTORISTS MUTUAL INSURANCE COMPANY'S MOTION FOR JUDGMENT ON THE PLEADINGS COMES NOW, the Plaintiff, Motorists Mutual Insurance Company ("Motorists"), and moves this Honorable Court to grant judgment on the pleadings in its favor for the reasons that follow: 1. On March 4, 2013, E.G., a minor, by J.G. and S.G., her parents and natural guardians, filed suit in the Court of Common Pleas of Cumberland County alleging that 16 year old Scott -1- Farrell, Jr., "psychologically manipulated, exploited, groomed, and ultimately sexually assaulted" the then 12 year old E.G. on various dates from January 2001 through late summer 2011. (Attached hereto as Exhibit "A" is a true and correct copy of said Complaint, as amended; see par. 15). 2. The Complaint alleges that Scott Farrell, Jr., breached a duty which required that he "not physically molest or sexually assault" E.G. (See Exh. "A", par. 25). 3. Said Complaint also alleges that Scott Farrell, Sr. and Kathleen Farrell negligently failed to adequately supervise their son, failed to warn E.G. or her parents of the risk he posed, permitted the sexual assaults to occur and, further, breached a duty "to prevent their minor son from intentionally harming Minor -Plaintiff..." (See Exh. "A", Count I generally and par. 22.h). 4. From January 15, 2011 to January 15, 2012, Motorists provided Homeowners Insurance to the Farrells under policy #0391-71-698102-70. (Attached hereto as Exhibit "B" is a true copy of the Declarations Sheet and Policy). 5. The Motorists policy excludes coverage for the following: 1. Coverage E - Personal liability...(does) not apply to "bodily injury"... a. Which is expected or intended by the "insured". [See Exh. "B", pages 13-14 of "Homeowners 3 Special Form", HO 0003 (04-91)]. Prior to the incident at issue, the "Special Provisions - Pennsylvania" Endorsement [HO 7137 (08-10) at page 5] amended this provision to exclude that "which is expected or intended by one or more `insureds'. (See Exh. `B" ). The policy also excludes coverage for bodily injury: k. Arising out of sexual molestation, corporal punishment or physical or mental abuse... -2- 6. Motorists is currently providing a defense to the Farrells subject to a reservation of rights. (Attached hereto as Exhibit "C" is a true and correct copy of the reservation of rights letter dated March 26, 2013). 7. Motorists seeks a declaration from the Court that it is not obligated to defend and indemnify the Farrells with respect to any of the claims set forth in the Cumberland County action filed by E.G. and her parents. 8. Pursuant to Pa.R.C.P. 1034, any party may move for judgment on the pleadings once the relevant pleadings are closed. WHEREFORE, Plaintiff, Motorists Mutual Insurance Company respectfully requests that the Court enter judgment on the pleadings in its favor declaring that Plaintiff is not obligated to defend or indemnify Scott Farrell, Jr., Scott Farrell, Sr. and Kathleen Farrell against the claims set forth in the Civil Action Complaint filed by E.G., a Minor, by J.G. and S.G., her parents and natural guardians, in the Cumberland County Court of Common Pleas. Respectfully submitted, HOHN & SCHEUERLE DATED: S'/?P BY: STEPHEN A. SCHEURLE, ESQUIRE CHARLES L. MCNABB, ESQUIRE Attorneys for Plaintiff -3- BY: STEPHEN A. SCHEUERLE, ESQUIRE SSCHEUERLE(a,DVERDICT.COM Identification No.: 38558 BY: CHARLES L. McNABB, ESQUIRE CMCNABB(a,DVERDICT.COM Identification No.: 60494 HOHN & SCHEUERLE Suite 3242 1700 Market Street Philadelphia, PA 19103 215-496-9995 215-496-9997 (Fax) Our File #3500-88 Attorneys for Plaintiff, Motorists Mutual Insurance Company MOTORISTS MUTUAL INSURANCE COMPANY Plaintiff, v. SCOTT FARRELL, SR., and KATHLEEN FARRELL and SCOTT FARRELL, JR. and . E. G., a minor, by J. G. and S. G., her parents and natural . guardians. . Defendants. . COURT OF COMMON PLEAS CUMBERLAND COUNTY CIVIL ACTION NO.: 14-1818 CERTIFICATE OF SERVICE I, Charles L. McNabb, Esquire, certify that a true and correct copy of Plaintiff's Motion for Judgment on the Pleadings was sent to counsel named below by U.S. Mail, postage prepaid: Benjamin D. Andreozzi, Esquire Andreozzi & Associates, P.C. 215 Pine Street Suite 200 Harrisburg, PA 17101 Thomas E. Brennan, Esquire Goldberg, Katzman, P.C. 4250 Crums Mill Road Suite 301 Harrisburg, PA 17112 By: Charles L. McNabb, Esquire Attorney for Plain tiff Case 1:13-cv-02724-YK Document 1-2 Filed 11/06/13 Page 1 of 13 6( 7 6,0 Benjamin D. Andreozzi Attorney ID #89271 Heather E. Verc; is c Attorney ID #201.310 ANDREOZ21. & ASSOCIATES. P.C. '15 Pine St, Ste. 200 Harrisburg, PA 17101 717-525-9124 Ben@midstatelaw.com Attorney for Plaintiff E.G., a minor. nv J.G. and S.G. her parents and natural guardians, VS. SCOUT F RREI.:I.., SR., and KATHLEEN FARRELL and SCOTT' FARRELL, JR. Plaintiffs Defendants IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA No. 13-1197 Civil CIVIL ACTION - LAW NOTICE TO DEFEND AND CLAIM. RIGHTS You have been sued in court. If you wish to defend against the claims set forth in the following pages, you must take action within twenty (20) days after this complaint and notice are served, by entering a written appearance personally or by attorney and filing in. writing with the court your defenses or objections to the claims set forth against you. You are warned that if you fail to do so the case may proceed without you and a judgment may be entered against you by the court without further notice for any money claimed in the complaint or for any other claim or relief requested by the plaintiff. You may lose money or property or other rights important to you. YOU SHOULD TAKE. THIS PAPER TO YOUR LAWYER AT ONCE. YOU 1)O NOT HAVE A LAWYER, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW. THIS OFFICE CAN PROVIDE YOU WITH .INFORMATION ABOUT HIRING A LAWYER. IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAY BE ABLE TO PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT ,MAY OFFER. LEGAL SERVICES TO EIAGIBIX PERSONS AT A REDUCED FEE O.R. NO FEE. EXHIBIT Case 1:13-cv-02724-YK Document 1-2 Filed 11106/13 Page 2 of 13 Benjamin D. Andreozzi Attorney ID #59271 Heather E. Verchick Attorney ID #201310 ANDREOZZI & ASSOCIATES, P.C. 215 Pine St., Ste. 200 Harrisburg, PA 17101 717-525-9124 Bert@midstatelaw.com Attorney for Plaintiff E.G.. a minor, by J.G. and S.C. her parents and natural guardians. vs. SCOTT FARRELL, SR., and KATHLEEN FARRELL and SCOTT FA:RRELL, JR. Plaintiffs Defendants IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA No. 13-1197 Civil CIVIL ACTION - LAW AMENDED COMPLAINT AND NOW come the Plaintiffs, through their counsel, Benjamin D. Andreozzi, Esq., and bring this .Amended Complaint against the Defendants and aver the following: The Parties l . Plaintiff, E.G. is a fourteen year old. resident of Cumberland County, Pennsylvania. J.G.. and S.G. are her adult parents and natural guardians. Initials are used to prevent public disclosure Other identity since this case involves child sexual abuse. Case 1:13-cv-02724-YK Document 1-2 Filed 11/06/13 Page 3 of 13 2. Defendant Scott Farrell, Sr. is an adult individual who resides at 5 Hilltop Circle Carlisle, PA 17015. 3. Defendant Kathleen Farrell is an adult individual who resides at 5 Hilltop Circle, Carlisle, PA 17015. A. Defendant Scott Farrell, Jr., is an adult individual who at all times rel=evant resided at 5 Hilltop Circle, PA. 17015, and to all belief and knowledge still resides at that address. The Abuse 5. As set forth in greater detail below, I.G. was sexually assaulted by Scott Farrell, Jr., ("Perpetrator") who is the eighteen year old son of Defendants Scott Farrell, Sr. ("Perpetrator's father") and Kathleen Farrell ("Perpetrator's mother). 6. The Perpetrator met E.G. in late January or early February of 2011 when E.G. was only twelve years old and the Perpetrator was sixteen years old. 7. At all times relevant, E.G. and the Perpetrator lived in the same neighborhood. 8. In mid-April of 2011, E.G.'s mother mentioned to the Perpetrator's father that the Perpetrator was showing an intense interest in her daughter which she thought was out of the ordinary. 9. She also advised the Perpetrator's father that the relationship must stay a friendship because it would be "illegal" for it to advance beyond a friendship and that he should closely monitor the relationship. 1-06 Case 1:13-cv-02724-YK Document 1-2 Filed 11/06/13 Page 4 of 13 10. The Perpetrator's father told E.G.'s mother she had nothing to worry about because the Perpetrator was a "good boy" and he merely acted young for his age and gravitated towards friendships with younger kids. 11. After this conversation, E.G.'s mother discovered information which led her to believe that the P et.petrator was romantically pursuing E.G. She called the Perpetrator's father and informed him of her discovery and instructed him the relationship needed to end and that the Perpetrator was not welcome at her house. 12. It is believed and therefore averred that in late March, or the first week cif April 2011, the Perpetrators' parents became aware that the Perpetrator was being accused of sexually assaulting an eleven year old girl in an unrelated incident, and that the police were investigating the matter. 13. At no time did the Perpetrators' parents give any indication to E.G.'s parents or E.G. that the Perpetrator had been accused of sexually assaulting a young girl. 14;. In fact, despite knowledge of the allegations of sexual abuse of another young girl, and concerned communications from E.G.'s mother, the Perpetrator's parents continued to allow E.G. and the Perpetrator to spend time together alone and unsupervised in their house. 15. On multiple occasions in the late spring and summer of 2011, the Perpetrator psychologically manipulated, exploited, groomed, and ultimately sexually assaulted E.G. in his parents' house, as well as other locations. At all times relevant hereto the Perpetrator was sixteen years old and E.G.. was twelve years old. Case 1:13-cv-02724-YK Document 1-2 Filed 11/06/13 Page 5 of 13 16. Although the Perpetrator did not intend to cause harm to E.G., his actions resulted in physical injuries, as well as severe emotional distress and psychological injuries. COUNT I E.G. vs. Scott Farrell, Sr. and Kathleen Farrell NEGLIGENCE 17. The allegations set forth in the preceding paragraphs are incorporated by reference as if set forth at length. 18. At all times relevant, Defendants Scott Farrell., Sr. and Kathleen Farrell knew that Defendant Scott Farrell, Jr. as accused of having prior inappropriate sexual contact with young - girls, had prior inappropriate sexual contact with young girls, and exhibited behaviors which demonstrated that he should not be left alone with a twelve year old girl. 19. At all times relevant, Defendants Scott Farrell, Sr. and. Kathleen Farrell knew, peneuitted, encouraged, and facilitated Defendant Scott Farrell, Jr. to have contact with Minor - Plaintiff, including but not limited to, unsupervised contact on their property. 20. As the parents of a sixteen year old boy, Defendants Scott Farrell, Sr. and Kathleen Farrell had a special relationship with Defendant Scott Farrell, Jr., and they were generally responsible for raising him and setting rules and boundaries for his conduct, particularly within their home. 21. Defendants Scott Farrell, Sr. and Kathleen Farrell owed a duty of reasonable care to Minor -Plaintiff as a result of their special relationship with Defendant Scott Farrell, Jr. and as owners and possessors of their home, upon which Minor -Plaintiff was an invitee. Case 1:13-cv-02724-YK Document 1-2 Filed 11/06/13 Page 6 of 13 22. Defendants Scott Farrell, Sr. and Kathleen Farrell were negligent, grossly negligent, and reckless as follows: a. failing to supervise or failing to adequately supervise Defendant Scott Farrell, Jr. with whom they had a special relationship; b. failing to warn the Minor -Plaintiff or her parents of the risk of harm posed by Defendant Scott Farrell, Jr.; c. permitting the harmful acts of Defendant Scott Farrell; Jr. to take place and/or continue; d. failing to make reasonably safe the property which they possessed and/or controlled; violation of duties imposed under Pennsylvania law, Section 314A(3) (4) of the Restatement (Second) of Torts because Defendants Scott Farrell. Sr. and Kathleen Farrell, were possessors of land who held it open to the public, including Minor -Plaintiff, and, as such owed a duty of reasonable protection to Minor -Plaintiff which they violated by failing to make safe the property or provide warnings to Minor -Plaintiff and/or Minor - Plaintiffs parents after having knowledge of the dangerous propensities and tendencies of Defendant Scott Farrell, Jr.; violation of duties imposed under Pennsylvania law, Section 311 of the Restatement (Second) of Torts because Defendants Scott Farrell, Sr. and Case 1:13-cv-02724-YK Document 1-2 Filed 11/06/13 Page 7 of 13 g. Kathleen Farrell gave false information to J.G. and S.G. regarding the nature of their minor son's relationship with E.G., and J.G. and. S.G. relied on this information and E.G. was harmed as a result of this reliance. violation of duties imposed ender Pennsylvania law, Section 315(a) & (h) of the Restatement (Second) of Torts; h. violation of duties imposed under Pennsylvania law, Section 316 of the Restatement (Second) of Torts because Defendants Scott Farrell, Sr. and Kathleen Farrell are the parents of Scott Farrell, Jr. and they were under a duty to exercise reasonable care so as to prevent their minor son from intentionally harming Minor -Plaintiff since they knew or had reason to know that they had the ability to control their minor son, and they knew or should know of the necessity and opportunity for exercising such control; violation of duties imposed under Pennsylvania law, Section 318 of the Restatement (Second) of Torts because Defendants Scott Farrell_ Sr. and Kathleen Farrell were possessors of land who permitted a third person, Defendant Scott Farrell, Jr., to conduct an activity on the land and failed to exercise reasonable care to prevent him from creating an unreasonable risk Of bodily harm to the Minor -Plaintiff when these defendants knew or should have known of their ability to control their minor son and knew of the need and opportunity to exercise control over him; Case 1:13-cv-02724-YK Document 1-2 Filed 11/06/13 Page 8 of 13 violation of duties imposed under Pennsylvania law, Section 319 of the Restatement (Second) of Torts because Defendants Scott Farrell, Sr. and Kathleen Farrell had charge of Defendant Scott: Farrell, Jr. and knew or should have known that he was likely to cause bodily harm to others, and specifically to Minor -Plaintiff, and did not exercise reasonable care to control their minor son from harming Minor -Plaintiff; l€. violation of duties imposed under Pennsylvania law, Section 320 of the Restatement (Second) of Torts because Defendants Scott Farrell Sr. and Kathleen Farrell voluntarily took custody of Minor -Plaintiff at their residence and subjected her to association with their minor son and knew or had reason to know that they had the ability to control the conduct of their minor son and knew or should have known the necessity and opportunity for exercising such control. violation of duties imposed under Pennsylvania law, Section 324A of the Restatement (Second) of Torts by having increased the risk of haul of injury to Plaintiff after having assumed the obligation to provide services to all Plaintiffs to care for and watch Minor -Plaintiff while she was at their residence, which was necessary for the protection of Minor -Plaintiff. allowing the Minor -Plaintiff to be in the company of Defendant Scott Farrell, Jr., when they knew or should have known and foreseen that based on his propensities towards young girls that he was a danger and threat to the Minor -Plaintiff and was likely to cause her harm; Case :13-cv-02724-YK Document 1-2 Filed 11/06/13 Page 9 of 13 44% ' • failing to take any precautions whatsoever to give protection and safety to iiibr-Vlaintifffroni tbe,dangerous.,propensities of Defendant Scott " - • ..„ Whichthey..had.notice, and knowledge, actual or • • • • 13. 02 constructive; .„ . to warnMitior-Plaintiff that activity engaged in by Defendant Scott Farrell, Jr., would be of a harmful nature to Minor -Plaintiff and have 'ill,' 4 „ traumatic effects on her in the future; — ' • . P. permitting Minor -Plaintiff to enter or remain on their property when they • • •„.• _ 1 1f t knew or should have known that while MiribrLPlaintiff remained on the property she was at risk to be hrnI bif Vefeliidant Scott Farrell, Jr.; negligent supervision ofthe property; i• . "vio1aton ofduties:iplposed. under Pennsylvania law; Section 341 and. • 341A of the Restatement (Second) of Torts; s. violation of diitiO'imposed under Pennsylvania law, Section 44-8 of the Restatirlient (Second.)10117ortzs; ;374a,'L t. failing to take reasonable and necessary -steps to rescue Minor -Plaintiff ' ier plae.ing lier in a perilous postion; •: u. failing to exercise reasonable care to prevent further harm after rendering ' 7Nlindr-P1aintiffin darigelEficurprehp‘rin, • Case 1:13-cv-02724-YK Document 1-2 Filed 11/06/13 Page 10 of 13 v. failing to take reasonable and necessary steps to give aid or assistance to . Minor -Plaintiff after rendering her in danger of further harm; w. failing to take reasonable and necessary steps to prevent and delay in the appropriate care of Minor -Plaintiff; x. violation of duties set forth in the Restatement (Second) of Torts, Section 321. 23. As a direct and proximate cause of the conduct of Defendants Scott Farrell, Sr., and Kathleen Farrell, described herein, Minor -Plaintiff suffered serious physical and emotional injuries. WHEREFORE, Plaintiffs claim of the Defendants, jointly and severally, damages in excess of the mandatory arbitration limits, in addition to other fees, costs, and interest as permitted by the law. COUNT II E.G. v. Scott Farrell, NEGLIGENCE 24. The allegations set forth in the preceding paragraphs are incorporated] by reference as if set 'forth at length. 25. Defendant Scott Farrell, Jr., owed Minor -Plaintiff a duty which required that he not physically molest or sexually assault her. 3 Case 1:13-cv-02724-YK Document 1-2 Filed 11/06/13 Page 11 of 13 26. Defendant Scott Farrell, Jr., mistakenly concluded the Minor -Plaintiff consented to sexual contact. 27. At all times relevant, Minor -Plaintiff did not consent, to sexual contact 'cott Farrell, Jr. 28. A reasonable person in Defendant Scott Farrell, Ir.'s position should have realized that Minor -Plaintiff, a twelve year old girl, did not consent to sexual touching. WHEREFORE, Plaintiffs claim of the Defendants, jointly and severally, damages in excess of the mandatory arbitration limits, in addition to other fees, costs, and interest as permitted by the law. Date: By: Respectfully submitted, Benjamin. D. Andreozzi PA# 89271 Andreozzi & Associates, ,P.C. 215 Pine Street, Suite 200 Harrisburg, PA 17101 p: 717.525.9142 f: 717.525.9143 Counsel for Plaintiffs Case 1:13-cv-02724-YK Document 1-2 Filed 11/06/13 Page 12 of 13 VERIFICATION 1, Benjamin D. Andreozzi, Esquire, Attorney for Plaintiffs EG., J.G. and S.G., verify that the statements made in the foregoing Amended Complaint are true and correct to the best of my knowledge, information and belief. I understand that false statements herein. are made subject to the penalties of 18 Pa. C.S. §4904, relating to unsworn falsification to authorities. Date: ANDREOZZI &. ASSOCIATES, P.C. By: Benjamin D. Andreozzi Attorney ID/#.89271 215 Pine St., Ste. 200 Harrisburg, PA 1.7101 (71.7) 525-9124 Counsel for Petitioner ase -cv- The undersigned certifies that this is a true and correct copy of the coverages in effect for policy number 0391-71-698102-70 on April 1, 201.1 by Motorists Mutual Insurance Company to Scott Farrell & Kathleen Farrell. Betty Graham CPCU, CIC, CRM, .PLCS, CISR, API, AN, CPIA, MSC, ACS, CPU Assistant Vice President Personal Lines Underwriting Personal Lines Division The Motorists Insurance A Group,You know us. Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 2 of 41 • Declarations POLICY NUMBER 71 .698102-70 EFFECTIVE DATE 01/15/1 1 ISSUE 10 (01 / 1 7/ 1 1) homeowners I It S UR AN CI FILE COPY PAGE 1 NAMED INSURED SCOTT FARRELL KATHLEEN FARRELL PO BOX 1042 CARLISLE PA 17013-6042 This Declarations voids and supersedes all prior issues, and together with the forms listed in the Schedule of Forms and Endorsements complete the above numbered policy. POLICY PERIOD From 01/15/11 to 01/15/12 This policy period begins and ends at 12:01 A.M. Standard Time at the residence premises as staled in the policy. Insured Residence Premises Description of Dwelling s 5 HILLTOP CIRCLE CARLISLE PA 17013 County: CUMBERLAND Year Built 1972 Construction ALUM/PLASTIC OVER Number of Families 001 FRAME Covera s e Descri u tion and Limits of Liabilit Limit Section I Coverages A. Dwelling B. Other Structures C. Personal Property D. Loss of Use Section 1 Deductible $ 216.700 21,670 151,690 43,340 250 Per Occurrence Section II Coverages Limit E. Personal Liability $ 300.000 Each Occurrence F. Medical Payments to Others 2,000 Each Person Premium Summary (This is not a billing) - Activity BASIC POLICY PREMIUM . 474.00 REVISION OPTIONAL COVERAGE PREMIUM FROM PAGE 2 57.00 TOTAL POLICY PREMIUM 531.00 ACCOUNT NUMBER' AAAG884900 HO 7001 01 95 A 1 Motorists Mutual Insurance Company' 471 East Broad Street, Columbus, Ohio 43215-3861 BACK MOUNTAIN PROF INS 59 1/2 MAIN ST LUZERNE PA 18709 (570)7143100 Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 3 of 41 POLICY NUMBER 71.698102-70 PAGE 2 Schedule of Forms and Endorsements Additional Premium Number Date Description HO 0003 HO 0496 HO 7002 HO 7050 HO 7125 HO 7137 IL 0910 HO 7140 HO 7416 HO 7363 HO 7123 04-91 HOMEOWNERS 3 SPECIAL FORM 04-91 HOME DAY CARE BUSINESS AMENDATORY ENDORSEMENT 06-06 POLICY COVERAGE AMENDMENTS AND MUTUAL PROVISIONS 09-04 IDENTITY FRAUD EXPENSE COVERAGE 01-95 WATERBED COVERAGE 08-10 SPECIAL PROVISIONS - PENNSYLVANIA 01-81 PENNSYLVANIA NOTICE 12-05 PREFERRED HOMEOWNERS ENDORSEMENT 04-02 PREMISES ALARM OR FIRE PROTECTION SYSTEM 01-95 PERSONAL PROPERTY REPLACEMENT COST 01-95 INFLATION PROTECTION ENDORSEMENT DISCOUNT INCLUDED $57.00 Mortgagee or Lienholder Information Mortgagee: 01 WELLS FARGO BANK NA #591 !SADA PO BOX 100591 FLORENCE SC 29502-0591 Loan No: 4556005 Billed: NO Mortgagee: Loan No: Billed: Description of Rating Elements (Appears on agent copy only) Protection Class Premium Group Territory Solution Level 04 13 33 Fire Hydrant within oosoo Feet Fire Department within 002 Miles Responding Fire Department CARLISLE This Page Completes Your ecfarations Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 4 of 41 POLICY NUMBER Homeowners 3 Special Form HO 0003 (04-91) AGREEMENT We will provide the insurance described in this policy in return for the premium and compliance with all applicable provisions of this policy. DEFINITIONS In this policy, "you" and "your" refer to the "named in- sured" shown in the Declarations and the spouse if a resi- dent of the same household. "We," "us" and "our" refer to the Company providing this insurance. In addition, cer- tain words and phrases are defined as follows: 1. "Bodily injury" means bodily harm, sickness or disease, including required care, loss of services and death that results. 2. "Business" includes trade, profession or occupation. 3. "Insured" means you and residents of your household who are: a. Your relatives; or b. Other persons under the age of 21 and in the care of any person named above. Under Section II, "insured" also means: c. With respect to animals or watercraft to which this policy applies, any person or organization legally re- sponsible for these animals or watercraft which are owned by you or any person included in 3.a. or 3.b. above. A person or organization using or having custody of these animals or watercraft in the course of any "business" or without consent of the owner is not an "insured"; d. With respect to any vehicle to which this policy ap- plies: (1) Persons while engaged in your employ or that of any person included in 3.a. or 3.b. above; or (2) Other persons using the vehicle on an "insured location" with your consent. 4. "Insured location" means: a. The "residence premises"; b. The part of other premises, other structures and grounds used by you as a residence and: (1) Which is shown in the Declarations; or (2) Which is acquired by you during the policy period for your use as a residence; c. Any premises used by you in connection with a premises in 4.a. and 4.b. above; d. Any part of a premises: (1) Not owned by an "insured"; and (2) Where an "insured", is temporarily residing; e. Vacant land, other than farm land, owned by or rented to an "insured"; f. Land owned by or rented to an "insured" on which a one or two family dwelling is being built as a re- sidence for an "insured"; Individual or family cemetery plots or burial vaults of an "insured"; or h. Any part of a premises occasionally rented to an "insured" for other than "business" use. 5. "Occurrence" means an accident; including continuous or repeated exposure to substantially the same general harmful conditions, which results, during the poilcy pe- riod, in: a. "Bodily injury"; or b. "Property damage." 6. "Property damage" means physical injury to, destruction of, or loss of use of tangible property. 7. "Residence employee" means: a. An employee of an "insured" whose duties are re- lated to the maintenance or use of the "residence premises," including household or domestic services; 9. HO 0003 (04-91) Page 1 of 18 b. One who performs similar duties elsewhere not re- lated to the "business" of an "insured." Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 5 of 41 POLICY NUMBER 8. "Residence premises" means: a. The one family dwelling, other structures, grounds; or b. That part of any other building; and where you reside and which is shown as the "residence premises" in the Declarations. "Residence premises" also means a two family dwelling where you reside in at least one of the family units and which is shown as the "residence premises" in the Declarations. SECTION I - PROPERTY COVERAGES COVERAGE A - Dwelling We cover: 1. The dwelling on the "residence premises" shown in the Declarations, including structures attached to the dwell- ing; and 2. Materials and supplies located on or next to the "resi- dence premises" used to construct, alter or repair the dwelling or other structures on the "residence prem- ises. This coverage does not apply to land, including land on which the dwelling is located. COVERAGE B - Other Structures We cover other structures on the "residence premises" set apart from the dwelling by clear space. This includes structures connected to the dwelling by only a fence, utility line, or similar connection. This coverage does not apply to land, including land on which the other structures are located. We do not cover other structures; 1. Used in whole or in part for "business"; or 2. Rented or held for rental to any person not a tenant of the dwelling, unless used solely as a private garage. The limit of liability for this coverage will not be more than 10% of the limit of liability that applies to Coverage A. Use of this coverage does not reduce the Coverage A limit of liability. COVERAGE C - Personal Property We cover personal property owned or used by an "insured" while it is anywhere in the world. At your request, we will cover personal property owned by: 1. Others while the property is on the part of the "resi- dence premises" occupied by an "insured"; 2. A guest or a "residence employee," while the property is in any residence occupied by an "insured." Our limit of liability for personal property usually located at an "insured's" residence, other than the "residence prem- ises," is 10% of the limit of liability for Coverage C, or $1000, whichever is greater. Personal property in a newly acquired principal residence is not subject to this limitation for the 30 days from the time you begin to move the pro- perty there. Special Limits of Liability. These limits do not increase the Coverage C limit of liability. The special limit for each numbered category below is the total limit for each loss for all property in that category. 1 $200 on money, bank notes, bullion, gold other than goldware, silver other than silverware, platinum, coins and medals. 2. $1000 on securities, accounts, deeds, evidences of debt, letters of credit, notes other than bank notes,. manu- scripts, personal records, passports, tickets and stamps. This dollar limit applies to these categories regardless of the medium (such as paper or computer software) on which the material exists. This limit includes the cost to research, replace or re- store the information from the lost or damaged material. 3. $1000 on watercraft, including their trailers, furnishings, equipment and outboard engines or motors. 4. $1000 on trailers not used with watercraft. 5. $1000 for loss by theft of jewelry, watches, furs, pre- cious and semi-precious stones. 6. $2000 for loss by theft of firearms. 7. $2500 for loss by theft of silverware, silver-plated ware, goldware, gold-plated ware and pewterware. This in- cludes flatware, hollowware, tea sets, trays and trophies made of or including silver, gold or pewter. 8. $2500 on property, on the "residence premises," used at any time or in any manner for any "business" pur- pose. HO 0003 (04-91) Page 2 of 18 Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 6 of 41 POLICY NUMBER 9. $250 on property, away from the "residence premises," used at any time or in any manner for any "business" purpose. However, this limit does not apply to loss to adaptable electronic apparatus as described in Special Limits 10. and 11. below. 10. $1000 for loss to electronic apparatus, while in or upon a motor vehicle or other motorized land conveyance, if the electronic apparatus is equipped to be operated by power from the electrical system of the vehicle or con- veyance while retaining its capability of being operated by other sources of power. Electronic apparatus in- cludes: a. Accessories or antennas; or b. Tapes, wires, records, discs or other media; for use with any electronic apparatus. 11. $1000 for loss to electronic apparatus, while not in or upon a motor vehicle or other motorized land convey- ance, if the electronic apparatus: a. Is equipped to be operated by power from the elec- trical system of the vehicle or conveyance while re- taining its capability of being operated by other sources of power; b. Is away from the "residence premises"; and c. Is used at any time or in any manner for any "bu- siness" purpose. Electronic apparatus includes: a. Accessories or antennas; or b. Tapes, wires, records, discs or other media; for use with any electronic apparatus. Property Not Covered. We do not cover: 1. Articles separately described and specifically insured in this or other insurance; 2. Animals, birds or fish; 3. Motor vehicles or all other motorized land conveyances. This includes: a. Their equipment and accessories; or b. Electronic apparatus that is designed to be operated solely by use of the power from the electrical system of motor vehicles or all other motorized land con- veyances. Electronic apparatus includes: (1) Accessories or antennas; or (2) Tapes, wires, records, discs or other media; for use with any electronic apparatus. The exclusion of property described in 3.a. and 3.b. above applies only while the property is in or upon the vehicle or conveyance. We do cover vehicles or conveyances not subject to motor vehicle registration which are: a. Used to service an "insured's" residence; or b. Designed for assisting the handicapped; 4. Aircraft and parts. Aircraft means any contrivance used or designed for flight, except model or hobby aircraft not used or designed to carry people or cargo; 5. Property of roomers, boarders and other tenants, except property of roomers and boarders related to an "in- sured"; 6. Property in an apartment regularly rented or held for rental to others by an "insured," except as provided in Additional Coverages 10; 7, Property rented or held for rental to others off the "re- sidence premises"; 8. "Business" data, including such data stored in: a. Books of account, drawings or other paper records; or b. Electronic data processing tapes, wires, records, discs or other software media. However, we do cover the cost of blank recording or storage media, and of pre-recorded computer programs available on the retail market; or 9. Credit cards or fund transfer cards except as provided in Additional Coverages 6. COVERAGE D - Loss of Use The limit of liability for Coverage D is the total limit for all the coverages that follow. 1. if a loss covered under this Section makes that part of the "residence premises" where you reside not fit to live in, we cover, at your choice, either of the following. However, if the "residence premises" is not your princi- pal place of residence, we will not provide the option under paragraph b. below. a. Additional Living Expense, meaning any necessary increase in living expenses incurred by you so that your household can maintain its normal standard of living; or b. Fair Rental Value, meaning the fair rental value of that part of the "residence premises" where you re- side less any expenses that do not continue while the premises is not fit to live in. HO 0003 (04-91) Page 3 of 18 Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 7 of 41 POLICY NUMBER Payment under a. or b. wit be for the shortest time re- quired to repair or replace the damage or, if you per- manently relocate, the shortest time required for your household to settle elsewhere. 2. If a loss covered under this Section makes that part of the "residence premises" rented to others or held for rental by you not fit to live in, we cover the: Fair Rental Value, meaning the fair rental value of that part of the "residence premises" rented to others or held for rental by you less any ex- penses that do not continue while the premises is not fit to live in. Payment will be for the shortest time required to repair or replace that part of the premises rented or held for rental. 3. If a civil authority prohibits you from use of the "resi- dence premises" as a result of direct damage to neigh- boring premises by a Peril Insured Against in this policy, we cover the Additional Living Expense and Fair Rental Value loss as provided under 1. and 2. above for no more than two weeks. The periods of time under 1., 2. and 3. above are not limited by expiration of this policy. We do not cover loss or expense due to cancellation of a lease or agreement. ADDITIONAL COVERGES 1. Debris Removal. We will pay your reasonable expense for the removal of: a. Debris of covered property if a Peril Insured Against that applies to the damaged property causes the loss; or b. Ash, dust or particles from a volcanic eruption that has caused direct loss to a building or property contained in a building. This expense is included in the limit of liability that ap- plies to the damaged property. If the amount to be paid for the actual damage to the property plus the debris removal expense is more than the limit of liability for the damaged property, an additional 5% of that limit of li- ability is available for debris removal expense. We will also pay your reasonable expense, up to $500, for the removal from the "residence premises" of: a. Your tree(s) felled by the peril of Windstorm or Hail; or b. Your tree(s) felled by the peril of Weight of Ice, Snow or Sleet; or c, A neighbor's tree(s) felled by a Peril Insured Against under Coverage C; provided the tree(s) damages a covered structure. The $500 limit is the most we will pay in any one loss re- gardless of the number of fallen trees. 2. Reasonable Repairs. In the event that covered property is damaged by an applicable Peril Insured Against, we will pay the reasonable cost incurred by you for neces- sary measures taken solely to protect against further damage. If the measures taken involve repair to other damaged property, we will pay for those measures only if that property is covered under this policy and the damage to that property is caused by an applicable Peril Insured Against. This coverage: a. Does not increase the limit of liability that applies to the covered property; b. Does not relieve you of your duties, in case of a loss to covered property, as set forth in SECTION I - CONDITION 2.d. 3. Trees, Shrubs and Other Plants. We cover trees, shrubs, plants or lawns, on the "residence premises," for loss caused by the following Perils Insured Against: Fire or lightning, Explosion, Riot or civil commotion, Aircraft, Vehicles not owned or operated by a resident of the "residence premises," Vandalism or malicious mischief or Theft. We will pay up to 5% of the limit of liability that applies to the dwelling, for all trees, shrubs, plants or lawns. No more than $500 of this limit will be available for any one tree, shrub or plant. We do not cover property grown for "business" purposes. This coverage is additional insurance. 4. Fire Department Service Charge. Vie will pay up to $500 for your liability assumed by contract or agreement for fire department charges incurred when the fire de- partment is called to save or protect covered property from a Peril Insured Against. We do not cover fire de- partment service charges if the property is located within the limits of the city, municipality or protection district furnishing the fire department response. This coverage is additional insurance. No deductible applies to this coverage. HO 0003 (04-91) Page 4 of 18 Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 8 of 41 POLICY NUMBER 5. Property Removed. We insure covered property against direct loss from any cause while being removed from a premises endangered by a Peril Insured Against and for no more than 30 days while removed. This coverage does not change the limit of liability that applies to the property being removed. 6. Credit Card, Fund Transfer Card, Forgery and Counter- feit Money. We will pay up to $500 for: a. The legal obligation of an "insured" to pay because of the theft or unauthorized use of credit cards is- sued to or registered in an "insured's" name: b. Loss resulting from theft cr unauthorized use of a fund transfer card used for deposit, withdrawal or transfer of funds, issued to or registered in an "insured's" name; c. Loss to an "insured" caused by forgery or alteration of any check or negotiable instrument; and d. Loss to an "insured" through acceptance in good faith of counterfeit United States or Canadian paper currency. We do not cover use of a credit card or fund transfer card: a. By a resident of your household; b. By a person who has been entrusted with either type 'of card; or c. it an "insured" has not complied with all terms and conditions under which the cards are issued. All loss resulting from a series of acts committed by any one person or in which any one person is concerned or implicated is considered to be one loss. We do not cover loss arising out of 'business" use or dishonesty of an "insured." This coverage is additional insurance. No deductible applies to this coverage. Defense: a. We may investigate and settle any claim or suit that we decide is appropriate. Our duty to defend a claim or suit ends when the amount we pay for the loss equals our limit of liability. b. If a suit is brought against an "insured" for liability under the Credit Card or Fund Transfer Card cover- age, we will provide a defense at our expense by counsel of our choice. c. We have the option to defend at our expense an "insured" or an "insured's" bank against any suit for the enforcement of payment under the Forgery cov- erage. 7. Loss Assessment. We will pay up to $1000 for your share of loss assessment charged during the policy pe- riod against you by a corporation or association of pro- perty owners, when the assessment is made as a result of direct loss to the property, owned by all members collectively, caused by a Peril Insured Against under COVERAGE A - DWELLING, other than earthquake or land shock waves or tremors before, during or after a volcanic eruption. This coverage applies only to loss assessments charged against you as owner or tenant of the "residence premises." We do not cover loss assessment charged against you or a corporation or association of property owners by any governmental body. The limit of $1000 is the most we will pay with respect to any one loss, regardless of the number of assess- ments. Condition 1. Policy Period, under SECTIONS 1 AND II - CONDITIONS, does not apply to this coverage. 8. Collapse. We insure for direct physical loss to covered property involving collapse of a building or any part of a building caused only by one or more of the following: a. Perils Insured Against in COVERAGE C - PERSONAL PROPERTY. These perils apply to covered buildings and personal property for loss insured by this addi- tional coverage; b. Hidden decay; c. Hidden insect or vermin damage; d. Weight of contents, equipment, animals or people; e. Weight of rain which collects on a roof; or f. Use of defective material or methods in construction, remodeling or renovation if the collapse occurs dur- ing the course of the construction, remodeling or renovation. Loss to an awning, fence, patio, pavement, swimming pool, underground pipe, flue, drain, cesspool, septic tank, foundation, retaining wall, bulkhead, pier, ;wharf or dock is not included under items b., c., d., e., and I. unless the loss is a direct result of the collapse of a building. HO 0003 (04-91) Page 5 of 18 Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 9 of 41 POLICY NUMBER Collapse does not include settling, cracking, shrinking, bulging or expansion. This coverage does not increase the limit of liability ap- plying to the damaged covered property. 9. `Glass or Safety Glazing Material. We cover: a. The breakage of glass or safety glazing material which is part of a covered building, storm door or storm window; and b. Damage to covered property by glass or safety glazing material which is part of a building, storm door or storm window. This coverage does not include loss on the "residence premises" if the dwelling has been vacant for more than 30 consecutive days immediately before the loss. A dwelling being constructed is not considered vacant. Loss for damage to glass will be settled on the basis of replacement with safety glazing materials when re- quired by ordinance or law. This coverage does not increase the limit of liability that applies to the damaged property. 10. Landlord's Furnishings. We will pay up to $2500 for your appliances, carpeting and other household fur- nishings, in an apartment on the "residence premises" regularly rented or held for rental to others by an "in- sured," for loss caused only by the following Perils In- sured Against: a. Fire or lightning. b. Windstorm or hail. This peril does not include loss to the property contained in a building caused by rain, snow, sleet, sand or dust unless the direct force of wind or hail damages the building causing an opening in a roof or wall and the rain, snow, sleet, sand or dust enters through this opening. This peril includes loss to watercraft and their trail- ers, furnishing, equipment, and outboard engines or motors, only while inside a fully enclosed building. c. Explosion. d. Riot or civil commotion. e. Aircraft, including self-propelled missiles and space- craft. HO 0003 (04-91) Page 6 of 18 f. Vehicles. 9 - Smoke, meaning sudden and accidental damage from smoke. This peril does not include loss caused by smoke from agricultural smuding -ori jndustrial operations. h. Vandalism or malicious mischief. i, Falling objects. This peril does not include loss to property contained in a building unless the roof or an outside wall of the building is first damaged by a falling object. Damage to the falling object itself is not included. j. Weight of ice, snow or sleet which causes damage to property contained in a building. k. Accidental discharge or overflow of water or steam from within a plumbing, heating, air conditioning or automatic fire protective sprinkler system or from within a household appliance. This peril does not include loss; (1) To the system or appliance from which the water or steam escaped; (2) Caused by or resulting from freezing except as provided in the peril of freezing below; or (3) On the "residence premises" caused by acci- dental discharge or overflow which occurs off the "residence premises." In this peril, a plumbing system does not include a sump, sump pump or related equipment. I. Sudden and accidental tearing apart, cracking, burning or bulging of a steam or hot water heating system, an air conditioning.. or automatic fire protec- tive sprinkler system, or an appliance for heating water. We do not cover loss caused by or resulting from freezing under this peril. m. Freezing of a plumbing, heating, air conditioning or automatic fire protective sprinkler system or of a household appliance. This peril does not include loss on the "residence premises" while the dwelling is unoccupied, unless you have used reasonable care to: (1) Maintain heat in the building; or (2) Shut off the water supply and drain the system and appliances of water. Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 10 of 41 POLICY NUMBER n. Sudden and accidental damage from. artificially generated electrical current. This peril does not include loss to a tube, transistor or similar electronic component. o. Volcanic eruption other than loss caused by earth- quake, land shock waves or tremors. The $2500 limit is the most we will pay in any one loss regardless of the number of appliances, carpeting or other household furnishings involved in the loss. SECTION i - PERILS INSURED AGAINST COVERAGE A - DWELLING and COVERAGE B - OTHER STRUCTURES We insure against risk of direct loss to property described in Coverages A and B only if that loss is a physical loss to property. We do not insure, however, for loss: 1. Involving collapse, other than as provided in Additional Coverage 8; 2. Caused by: a. Freezing of a plumbing, heating, air conditioning or automatic fire protective sprinkler system or of a household appliance, or by discharge, leakage or overflow from within the system or appliance caused by freezing. This exclusion applies only while the dwelling is vacant, unoccupied or being constructed, unless you have used reasonable care to: (1) Maintain heat in the building; or (2) Shut off the water supply and drain the system and appliances of water; b. Freezing, thawing, pressure or weight of water or ice, whether driven by wind or not, to a: (1) Fence, pavement, patio or swimming pool; (2) Foundation, retaining wall, or bulkhead; or (3) Pier, wharf or dock; c. Theft in or to a dwelling under construction, or of materials and supplies for use in the construction until the dwelling is finished and occupied; d. Vandalism and malicious mischief if the dwelling has been vacant for more than 30 consecutive days im- mediately before the loss. A dwelling being con- structed is not considered vacant; e. Any of the following: (1) Wear and tear, marring, deterioration; (2) Inherent vice, latent defect, mechanical break- down; (3) Smog, rust or other corrosion, mold, wet or dry rot; (4) Smoke from agricultural smudging or industrial operations; (5) Discharge, dispersal, seepage, migration, release or escape of pollutants unless the discharge, dispersal, seepage, migration, release or escape is itself caused by a Peril Insured Against under Coverage C of this policy. Pollutants means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned or reclaimed; (6) Settling, shrinking, bulging or expansion, includ- ing resultant cracking, of pavements, patios, foundations, walls, floors, roofs or ceilings; (7) Birds, vermin, rodents, or insects; or (8) Animals owned or kept by an "insured." If any of these cause water damage not other- wise excluded, from a plumbing, heating, air conditioning or automatic fire protective sprinkler system or household appliance, we cover loss caused by the water including the cost of tearing out and replacing any part of a building neces- sary to repair the system or appliance. We do not cover loss to the system or appliance from which this water escaped. Excluded under Section I - Exclusions. Under items 1. and 2., any ensuing loss to property de- scribed in Coverage A and B not excluded or excepted in this policy is covered. COVERAGE C - PERSONAL PROPERTY We insure for direct physical loss to the property described in Coverage C caused by a peril listed below unless the loss is excluded in SECTION I - EXCLUSIONS. HO 0003 (04-91) Page 7 of 18 Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 11 of 41 POLICY NUMBER 1. Fire or lightning. 2. Windstorm or hail. This peril does not include loss to the inside of a build- ing or, the property contained in a building caused by rain, .snow, sleet, sand or dust unless the direct force of wind or hail damages the building causing an opening in a roof or wall and the rain, snow, sleet, sand or dust enters through this opening. This peril includes loss to watercraft and their trailers, furnishings, equipment, and outboard engines or motors, only while inside a fully enclosed building. 3. Explosion, 4. Riot or civil commotion. 5. Aircraft, including self-propelled missiles and spacecraft. 6. Vehicles. 7. Smoke, meaning sudden and accidental damage from smoke. This peril does not include loss caused by smoke from agricultural smudging or industrial operations. 8. Vandalism or malicious mischief. 9. Theft, including attempted theft and loss of property from a known place when it is likely that the property has been stolen. This peril does not include loss caused by theft; a. Committed by an "insured"; b. In or to a dwelling under construction, or of mate- rials and supplies for use in the construction until the dwelling is finished and occupied; or c. From that part of a "residence premises" rented by an "insured" to other than an "insured." This peril does not include loss caused by theft that occurs off the "residence premises" ot: a. Property while at any other residence owned by, rented to, or occupied by an "insured," except while an "insured" is temporarily living there. Property of a student who is an "insured" is covered while at a residence away from home it the student has been there at any time during the 45 days imme- diately before the loss; b. Watercraft, and their furnishings, equipment and outboard engines or motors; or c. Trailers and campers. 10. Falling objects. This peril does not include loss to pOperty contained in a building unless the roof or an outside wall of the building is first damaged by a failing object. Damage to the falling object itself is not included: 11. Weight of ice, snow or sleet which causes damage to property contained in a building. 12. Accidental discharge or overflow of water or steam from within a plumbing, heating, air conditioning or au- tomatic fire protective sprinkler system or from within a household appliance. This peril does not include loss: a. To the system or appliance from which the water or steam escaped; b. Caused by or resulting from freezing except as pro- vided in the peril of freezing below; or c. On the "residence premises" caused by accidental discharge or overflow which occurs off the "resi- dence premises." In this peril, a plumbing system does not include a sump, sump pump or related equipment. 13. Sudden and accidental tearing apart, cracking, burning or bulging of a steam or hot water heating system, an air conditioning or automatic fire protective sprinkler system, or an appliance for heating water. We do not cover loss caused by or resulting from freezing under this peril. 14. Freezing of a plumbing, heating, air conditioning or au- tomatic fire protective sprinkler system or of a house- hold appliance. This peril does not include loss on the "residence premises" while the dwelling is unoccupied, unless you have used reasonable care to: a. Maintain heat in the building; or b. Shut off the water supply and drain the system and appliances of water. 15. Sudden and accidental damage from artifically gener- ated electrical current. This peril does not include loss to a tube, transistor or similar electronic component. 16. Volcanic eruption other than loss caused by earthquake, land shock waves or tremors. H0 0003 (04-91) Page 8 of 18 Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 12 of 41 POLICY NUMBER SECTION I - EXCLUSIONS 1. We do not insure for loss caused directly or indirectly by any of the following. Such loss is excluded,rregard- less of any other cause or event contributing concur- rently or in any sequence to the loss. a. Ordinance or Law, meaning enforcement of any or- dinance or law regulating the construction, repair, or demolition of a building or other structure, unless specifically provided under this policy. b. Earth Movement, meaning earthquake including land shock waves or tremors before, during or after a volcanic eruption; landslide; mine subsidence; mud - flow; earth sinking, rising or shifting; unless direct loss by: (1) Fire; (2) Explosion; or (3) Breakage of glass or safety glazing material which is part of a building, storm door or storm window; ensues and then we will pay only for the ensuing loss. This exclusion does not apply to loss by theft. c. Water Damage, meaning: '(1) Flood, surface water, waves, tidal water, overflow of a body of water, or spray from any of these, whether or not driven by wind; (2) Water which backs up through sewers or drains or which overflows from a sump: or (3) Water below the surface of the ground, including water which exerts pressure on or seeps or leaks through a building, sidewalk, driveway, founda- tion, swimming pool or other structure. Direct loss by fire, explosion or theft resulting from water damage is covered. d. Power Failure, meaning the failure of power or other utility service if the failure takes place off the "resi- dence premises." But, if a Peril Insured Against ensues on the "residence premises," we will pay only for that ensuing loss. e. Neglect, meaning neglect of the "insured" to use all reasonable means to save and preserve property at and after the time of a loss. f, War, including the following and any consequence of any of the following: (1) Undeclared war, civil war, insurrection, rebellion or revolution; (2) Warlike act by a military force or military per- sonnel; or (3) Destruction, seizure or use for a military pur- pose. Discharge of a nuclear weapon will be deemed a warlike act even if accidental. Nuclear Hazard, to the extent set forth in the Nu- clear Hazard Clause of SECTION I - CONDITIONS. h. Intentional Loss, meaning any loss arising out of any act committed: (1) By or at the direction of an "insured"; and (2) With the intent to cause a loss. 2. We do not insure for loss to property described in Coverages A and B caused by any of the following. However, any ensuing loss to property described in Coverages A and B not excluded or excepted in this policy is covered. a. Weather conditons. However, this exclusion only applies if weather conditions contribute in any way with a cause or event excluded in paragraph 1. above to produce the loss: b. Acts or decisions, including the failure to act or de- cide, of any person, group, organization or govern- mental body. c. Faulty, inadequate or detective: (1) Planning, zoning, development, surveying, siting; (2) Design, specification, workmanship, repair, con- struction, renovation, remodeling, grading, com- paction: (3) Material used in repair, construction, renovation or remodeling; or (4) Maintenance: of part or all of any property whether on or off the "residence premises." g• HO 0003 (04-91) Page 9 of 18 Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 13 of 41 POLICY NUMBER SECTION I - CONDITIONS 1. Insurable Interest and Limit of Liability. Even if more than one person has an insurable interest in the property covered, we will not be liable in any one loss: a. To the "insured" for more than the amount of the "insured's" interest at the time of loss; or b. For more than the applicable limit of liability. 2. Your Duties After Loss, In case of a loss to covered property, you must see that the following are done: a. Give prompt notice to us or our agent; b. Notify the police in case of loss by theft; c. Notify the credit card or fund transfer card company in case of loss under Credit Card or Fund Transfer Card coverage; d. Protect the property from further damage. If repairs to the property are required, you must: (1) Make reasonable and necessary repairs to protect the property; and (2) Keep an accurate record of repair expenses; e. Prepare an inventory of damaged personal property showing the quantity, description, actual cash value and amount of loss. Attach all bills, receipts and related documents that justify the figures in the in- ventory; 1. As often as we reasonably require: (1) Show the damaged property; (2) Provide us with records and documents we re- quest and permit us to make copies; and (3) Submit to examination under oath, while not in the presence of any other "insured," and sign the same; Send to us, within 60 days after our request, your signed, sworn proof of loss which sets forth, to the best of your knowledge and belief: (1) The time and cause of loss; (2) The interest of the "insured" and all others in the property involved and all liens on the property; (3) Other insurance which may cover the loss; 9. (4) Changes in title or occupancy of the property during the term of the policy; (5) Specification of damaged buildings'and detailed repair estimates; (6) The inventory of damaged personal property de- scribed in 2.e. above; (7) Receipts for additional living expenses incurred and records that support the fair rental value loss; and (8) Evidence or affidavit that supports a claim under the Credit Card, Fund Transfer Card, Forgery and Counterfeit Money coverage, stating the amount and cause of loss. 3. Loss Settlement. Covered property losses are settled as follows: a. Property of the following type: (1) Personal property; (2) Awnings, carpeting, household appliances, out- door antennas and outdoor equipment, whether or not attached to buildings; and (3) Structures that are not buildings; at actual cash value at the time of loss but not more than the amount required to repair or replace. b. Buildings under Coverage A or B at replacement cost without deduction for depreciation, subject to the following: (1) If, at the time of loss; the amount of insurance in this policy on the damaged building is 80% or more of the full replacement cost of the building immediately before the loss, we will pay the cost to repair or replace, after application of deductible and without deduction for depreci- ation, but not more than the least of the fol- lowing amounts: (a) The limit of liability under this policy that applies to the building; (b) The replacement cost of that part of the building damaged for like construction and use on the same premises; or (c) The necessary amount actually spent to re- pair or replace the damaged building. HO 0003 (04-91) Page 10 of 18 Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 14 of 41 POLICY NUMBER (2) If, at the time of loss, the amount of insurance in this policy on the damaged building is less than 80% of the full replacement cost of the building immediately before the loss, we will pay the greater of the following amounts, bu;.;npt more than the limit of liability under this policy that applies to the building: (a) The actual cash value of that part of the building damaged; or (b) That proportion of the cost to repair or re- place, after application of deductible and without deduction for depreciation, that part of the building damaged, which the total amount of insurance in this policy on the damaged building bears to 80% of the re- placement cost of the building. (3) To determine the amount of insurance required to equal 80% of the full replacement cost of the building immediately before the loss, do not in- clude the value of: (a) Excavations, foundations, piers or any sup- ports which are below the undersurface of the lowest basement floor; (b) Those supports in (a) above which are below the surface of the ground inside the founda- tion walls, if there is no basement; and (c) Underground flues, pipes, wiring and drains. (4) We will pay no more than the actual cash value of the damage until actual repair or replacement is complete. Once actual repair or replacement is complete, we will settle the loss according to the provisions of b.(1) and b.(2) above. However, if the cost to repair or replace the damage is both: (a) Less than 5% of the amount of insurance in this policy on the building; and (b) Less than $2500; We will settle the loss according to the pro- visions of b.(1) and b.(2) above whether or not actual repair or replacement is complete. (5) You may disregard the replacement cost loss settlement provisions and make claim under this policy for loss or damage to buildings on an actual cash value basis. You may then make claim within 180 days after loss for any additional liability according to the provisions of this Condition 3. Loss Settlement. 4. Loss to a Pair or Set. In case of loss to a pair or set we may elect to: a. Repair or replace any part to restore the pair or set to its value before the loss; or b. Pay the difference between actual cash value of the property before and after the loss. 5. Glass Replacement. Loss for damage to glass caused by a Peril Insured Against will be settled on the basis of replacement with safety glazing materials when re- quired by ordinance or law. 6. Appraisal. If you and we fail to agree on the amount of loss, either may demand an appraisal of the loss. In this event, each party will choose a competent ap- praiser within 20 days after receiving a written request from the other. The two appraisers will choose an umpire. If they cannot agree upon an umpire within 15 days, you or we may request that the choice be made by a judge of a court of record in the state where the "residence premises' is located. The appraisers will separately set the amount of loss. If the appraisers submit a written report of an agreement to us, the amount agreed upon will be the amount of loss. If they fail to agree, they will submit their differences to the umpire. A decision agreed to by any two will set the amount of loss. Each party will: a. Pay its own appraiser; and b. Bear the other expenses of the appraisal and umpire equally. 7. Other Insurance. If a loss covered by this policy is also covered by other insurance, we will pay only the pro- portion of the loss that the limit of liability that applies under this policy bears to the total amount of insurance covering the loss. 8. Suit Against Us. No action can be brought unless the policy provisions have been complied with and the action is started within one year after the date of loss. 9. Our Option. If we give you written notice within 30 days after we receive your signed, sworn proof of loss, we may repair or replace any part of the damaged property with like property. HO 0003 (04-91) Page 11 of 18 Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 15 of 41 POLICY NUMBER 10. Loss Payment. We will adjust all losses with you. We will pay you unless some other person is named in the policy or is legally entitled to receive payment. Loss will be payable 60 days after we receive your proof of loss and: a. Reach an agreement with you; b. There is an entry of a final judgment; or c. There is a filing of an appraisal award with us. 11. Abandonment of Property. We need not accept any property abandoned by an "insured." 12. Mortgage Clause. The word "mortgagee" includes trustee. If a mortgagee is named in this policy, any loss payable under Coverage A or B will be paid to the mortgagee and you, as interests appear. If more than one mort- gagee is named, the order of payment will be the same as the order of precedence of the mortgages. If we deny your claim, that denial will not apply to a valid claim of the mortgagee, if the mortgagee: a. Notifies us of any change in ownership, occupancy or substantial change in risk of which the mortgagee is aware; b. Pays any premium due under this policy on demand if you have neglected to pay the premium; and c. Submits a signed, sworn statement of loss within 60 days after receiving notice from us of your failure to do so. Policy conditions relating to Appraisal, Suit Against Us and Loss Payment apply to the mortgagee. If we decide to cancel or not to renew this policy, the mortgagee will be notified at least 10 days before the date cancellation or nonrenewal takes effect. if we pay the mortgagee for any loss and deny payment to you: a. We are subrogated to all the rights of the mortgagee granted under the mortgage on the property; or b. At our option, we may pay to the mortgagee the whole principal on the mortgage plus any accrued interest. In this event, we will receive a full assign- ment and transfer of the mortgage and all securities held as collateral to the mortgage debt. Subrogation will not impair the right of ttfe°mortgagee to recover the full amount of the mortgagee's claim. 13. No Benefit to Bailee. We will not recognize any as- signment or grant any coverage that benefits a person or organization holding, storing or moving property for a fee regardless of any other provision of this policy. 14. Nuclear Hazard Clause. a. "Nuclear Hazard" means any nuclear reaction, radi- ation, or radioactive contamination, ail whether con- trolled or uncontrolled or however caused, or any consequence of any of these. b. Loss caused by the nuclear hazard will not be con- sidered loss caused by fire, explosion, or smoke, whether these perils are specifically named in or otherwise included within the Perils Insured Against in Section I. c. This policy does not apply under Section i to loss caused directly or indirectly by nuclear hazard, except that direct loss by fire resulting from the nuclear hazard is covered. 15. Recovered Property. If you or we recover any property for which we have made payment under this policy, you or we will notify the other of the recovery. At your option, the property will be returned to or retained by you or it will become our property. If the recovered property is returned to or retained by you, the loss payment will be adjusted based on the amount you re- ceived for the recovered property. 16. Volcanic Eruption Period. One or more volcanic eruptions that occur within a 72 -hour period will be considered as one volcanic eruption. SECTION It - LIABILITY COVERAGES COVERAGE E - Personal Liability If a claim is made or a suit is brought against an "insured" for damages because of "bodily injury" or "property dam- age" caused by an "occurrence" to which this coverage applies, we will: 1. Pay up to our limit of liability for the damages for which the "insured" is legally liable. Damages include pre- judgment interest awarded against the "insured"; and HO 0003 (04-91) Page 12 of 18 Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 16 of 41 POLICY NUMBER 2. Provide a defense at our expense by counsel of our choice, even if the suit is groundless, false or fraudulent. We may investigate and settle any claim or suit that we decide is appropriate. Our duty to settle or defend ends when the amount we pay for damages resulting from the "occurrence" equals our limit of liability. COVERAGE F - Medical Payments To Others We will pay the necessary medical expenses that are in- curred or medically ascertained within three years from the date of an accident causing "bodily injury." Medical ex- penses means reasonable charges for medical, surgical, x- ray, dental, ambulance, hospital, professional nursing, prosthetic devices and funeral services. This coverage does not apply to you or regular residents of your household ex- cept "residence employees." As to others, this coverage applies only: 1. To a person on the "insured location" with the permis- sion of an "insured"; or 2. To a person off the "insured location," if the "bodily injury": a. Arises out of a condition on the "insured location" or the ways immediately adjoining; b. Is caused by the activities of an "insured"; c. Is caused by a "residence employee" in the course of the "residence employee's" employment by an "insured"; or d. Is caused by an animal owned by or in the care of an "insured." SECTION II - EXCLUSIONS 1. Coverage E • Personal Liability and Coverage F - Med- ical Payments to Others do not apply to "bodily injury" or "property damage": a. Which is expected or intended by the "insured"; b. Arising out of or in connection with a "business" engaged in by an "insured." This exclusion applies but is not limited to an act or omission, regardless of its nature or circumstance, involving a service or duty rendered, promised, owed, or implied to be provided because of the nature of the "business"; c. Arising out of the rental or holding for rental of any premises by an "insured." This exclusion does not apply to the rental or holding for rental of an "in- sured location": (1) On an occasional basis if used only as a resi- dence; (2) In part for use only as a residence, unless a single family unit is intended for use by the oc- cupying family to lodge more than two roomers or boarders; or (3) In part, as an office, studio or private garage; d. Arising out of the rendering of or failure to render professional services; e. Arising out of a premises: (1) Owned by an "insured"; (2) Rented to an "insured"; or (3) Rented to others by an "insured"; that is not an "insured location"; f. Arising out of: (1) The ownership, maintenance, use, loading or unloading of motor vehicles or all other motor- ized land conveyances, including trailers, owned or operated by or rented or loaned to an "in- sured"; (2) The entrustment by an "insured" of a motor vehicle or any other motorized land conveyance to any person; or (3) Vicarious liability, whether or not statutorily im- posed, for the actions of a child or minor using a conveyance excluded in paragraph (1) or (2) above. This exclusion does not apply to: (1) A trailer not towed by or carried on a motorized land conveyance. (2) A motorized conveyance designed for recreational use off public roads, not subject to motor vehicle registration and: (a) Not owned by an "insured"; or (b) Owned by an "insured" and on an "insured location"; (3) A motorized golf cart when used to play golf on a golf course; (4) A vehicle or conveyance not subject to motor vehicle registration which is: HO 0003 (04-91) Page 13 of 18 Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 17 of 41 POLICY NUMBER g. (a) Used to service an "insured's" residence; (b) Designed for assisting the handicapped; or (c) !n dead storage on an "insured location"; Arising out of: (1) The ownership;' maintenance, use, loading or unloading of an excluded -watercraft described below; (2) The entrustment by an "insured" of an excluded watercraft described below to any person; or (3) Vicarious liability, whether or not statutorily im- posed, for the actions of a child or minor using an excluded watercraft described below. Excluded watercraft are those that are principally designed to be propelled by engine power or electric motor, or are sailing vessels, whether owned by or rented to an "insured." This exclusion does not apply to watercraft: (1) that are not sailing vessels and are powered by: (a) Inboard or inboard-outdrive .engine or motor power of 50 horsepower or less not owned by an "insured"; (b) Inboard or inboard-outdrive engine or motor power of more than 5 horsepower not owned by or rented to an "insured"; (c) One or more outboard engines or motors with 25 total horsepower or less; (d) One or more outboard engines or motors with more than 25 total horsepower if the outboard engine or motor is not owned by an "insured"; (e) Outboard engines or motors of more than 25 total horsepower owned by an "insured" if; (i) You acquire them prior to the policy pe- riod; and (a) You declare them at policy inception; or (b) Your intention to insure is reported to us in writing within 45 days after you acquire the outboard engines or motors. (ii) You acquire them during the policy pe- riod. This coverage applies for the policy period. HO 0003 (04-91) Page 14 of 18 (2) That are sailing vessels, with or without auxiliary power: (a) Less than 25 feet in overall length; (b) 26 feet or more in overall length, .not owned by or rented to an "insured." (3) That are stored; h. Arising out of: (1) The ownership, maintenance, use, loading or unloading of an aircraft; (2) The entrustment by an "insured" of an aircraft to any person; or (3) Vicarious liability, whether or not statutorily im- posed, for the action of a child or minor using an aircraft. An aircraft means any contrivance used or designed for flight, except model or hobby aircraft not used or designed to carry people or cargo; i. Caused directly or indirectly by war, including the following and any consequences of any of the fol- lowing: (1) Undeclared war, civil war, insurrection, rebellion or revolution; (2) Warlike act by a military force or military per- sonnel; or (3) Destruction, seizure or use for a military pur- pose. Discharge of a nuclear weapon will be deemed a warlike act even if accidental; j. Which arises out of the transmission of a commu- nicable disease by an "insured"; k. Arising out of sexual molestation, corporal punish- ment or physical or mental abuse; or I. Arising out of the use, sale, manufacture, delivery, transfer or possession by any person of a Controlled Substance(s) as defined by the Federal Food and Drug Law at 21 U.S.C.A. Sections 811 and 812. Controlled Substances include but are not limited to cocaine, LSD, marijuana and all narcotic drugs. However, this exclusion does not apply to the legiti- mate use of prescription drugs by a person following the orders of a licensed physician. Exclusions e., f., g., and h. do not apply to "bodily in- jury" to a "residence employee" arising out of and in the course of the "residence employee's" employment by an "insured." Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 18 of 41 POLICY NUMBER 2. Coverage E • Personal Liability, does not apply to: a. Liability: (1) For any loss assessment charged against you as a member of an association or community of property owners; (2) Under any contract or agreement. However, this exclusion does not apply to written contracts: (a) That directly relate to the ownership, main- tenance or use of an "insured location"; or (b) Where the liability of others is assumed by the "insured" prior to an "occurrence"; unless excluded in (1) above or elsewhere in this policy; b. "Property damage" to property owned by the "in- sured"; c "Property damage" to property rented to, occupied or used by or in the care of the "insured." This exclusion does not apply to "property damage" caused by fire, smoke or explosion; d. "Bodily injury" to any person eligible to receive any benefits: (1) Voluntarily provided; or (2) Required to be provided; by the "insured" under any; (1) Workers' compensation law; (2) Non -occupational disability law; or (3) Occupational disease law; e. "Bodily injury" or "property damage" for which an "insured" under this policy: (1) Is also an insured under a nuclear energy liability policy; or (2) Would be an insured under that policy but for the exhaustion of its limit of liability. A nuclear energy liability policy is one issued by: (1) American Nuclear Insurers; (2) Mutual Atomic Energy Liability Underwriters; (3) Nuclear Insurance Association of Canada; or any of their successors; or f. "Bodily injury" to you or an "insured" within the meaning of part a. or b. of "insured" as defined. 3. Coverage F - Medical Payments to Others, does not apply to "bodily injury": a. To a "residence employee" if the "bodily injury": (1) Occurs off the "insured location"; and , (2) Does not arise out. of or in the course of the "residence employee's" employment by an "in- sured"; b. To any person eligible to receive benefits: (1) Voluntarily provided; or (2) Required to be provided; under any: (1) Workers' compensation law; (2) Non -occupational disability law; or (3) Occupational disease law; c. From any: (1) Nuclear reaction; (2) Nuclear radiation; or (3) Radioactive contamination; all whether controlled or uncontrolled or however caused; or (4) Any consequence of any of these; or d. To any person, other than a "residence employee" of an "insured," regularly residing on any part of the "insured location." SECTION II - ADDITIONAL COVERAGES We cover the following in addition to the limits of liability: 1. Claim Expenses. We pay: a. Expenses we incur and costs taxed against an "in- sured" in any suit we defend; HO 0003 (04-91) Page 15 of 18 b. Premiums on bond required in a suit we defend, but not for bond amounts more than the limit of liability for Coverage E. We need not apply for or furnish any bond; Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 19 of 41 POUCY NUMBER • c. Reasonable expenses incurred by an "insured" at our request, including actual loss of earnings (but not loss of other income) up to $50 per day, for as- sisting us in the investigation or defense of a claim or suit; and d. Interest on the entire'judgment which accrues after entry of the judgment and before we pay or tender, or deposit in court that part of the judgment which does not exceed the limit of liability that applies. 2. First Aid Expenses. We will pay expenses for first aid to others incurred by an "insured" for "bodily injury" covered under this policy. We will not pay for first aid to you or any other "insured." 3. Damage to Property of Others. We will pay, at re- placement cost, up to $500 per "occurrence" for "pro- perty damage" to property of others caused by an "insured." We will not pay for "property damage": a. To the extent of any amount recoverable under Section I of this policy; b. Caused intentionally by an "insured" who is 13 years of age or older; c. To property owned by an "insured"; d. To property owned by or rented to a tenant of an "insured" or a resident in your household; or e. Arising out of: (1) A "business" engaged in by an "insured"; (2) Any act or omission in connection with a prem- ises owned, rented or controlled by an "insured," other than the "insured location"; or (3) The ownership, maintenance, or use of aircraft, watercraft or motor vehicles or all other motor- ized land conveyances. This exclusion does not apply to a motorized land conveyance designed for recreational use off public roads, not subject to motor vehicle registration and not owned by an "insured." 4. Loss Assessment. We will pay up to $1000 for your share of loss assessment charged during the policy pe- riod against you by a corporation or assocation of pro- perty owners, when the assessment is made as a result of: a. "Bodily injury" or "property damage" not excluded ' under Section II of this policy; or b. Liability for an act of a director, officer or trustee in the capacity as a director, officer or trustee, pro- vided: (1) The director, officer or trustee is elected by the members of a corporation or association of pro- perty owners; and (2) The director, officer or trustee serves without deriving any income from the exercise of duties which are solely on behalf of a corporation or association of property owners. This coverage applies only to loss assessments charged against you as owner or tenant of the "residence premises." We do not cover loss assessments charged against you or a corporation or association of property owners by any governmental body. Regardless of the number of assessments, the limit of $1000 is the most we will pay for loss arising out of: a. One accident, including continuous or repeated ex- posure to substantially the same general harmful condition; or b. A covered act of a director, officer or trustee. An act involving more than one director, officer or trustee is considered to be a single act. The following do not apply to this coverage: 1. Section II - Coverage E - Personal Liability Exclusion 2.a.(1); 2. Condition 1. Policy Period, under SECTIONS I AND II - CONDITIONS. SECTION II • CONDITIONS 1. Limit of Liability. Our total liability under Coverage E for all damages resulting from any one "occurrence" will not be more than the limit of liability for Coverage E as shown in the Declarations. This limit is the same regardless of the number of "insureds," claims made or persons injured, HO 0003 (04-91) Page 16 of 18 All "bodily injury" and "property damage" resulting from any one accident or from continuous or repeated expo- sure to substantially the same general harmful conditions shall be considered to be the result of one "occurrence." Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 20 of 41 POLICY NUMBER Our total liability under Coverage F for all medical ex- penses payable for "bodily injury" to one person as the result of one accident will not be more than the limit of liability for Coverage F as shown in the Declarations. 2. Severability of Insurance. This insurance applies sepa- rately to each "insured," This condition will not increase our limit of liability for any one "occurrence." 3. Duties Atter Loss. In case of an accident or "occur- rence," the "insured" will perform the following duties that apply. You will help us by seeing that these duties are performed: a. Give written notice to us or our agent as soon as is practical, which sets forth; (1) The identity of the policy and "insured"; (2) Reasonably available information on the time, place and circumstances of the accident or "oc- currence": and (3) Names and addresses of any claimants and wit- nesses: b. Promptly forward to us every notice, demand, sum- mons or other process relating to the accident or "occurrence"; c. At our request, help.us: (1) To make settlement; (2) To enforce any right of contribution or idemnity against any person or organization who may be liable to an "insured"; (3) With the conduct of suits and attend hearings and trials: and (4) To secure and give evidence and obtain the at- tendence of witnesses; d, Under the coverage ' Damage to Property of Others - submit to us within 60 days after the loss, a sworn statement of loss and show the damaged property, if in the "insured's" control; e. The "insured" will not, except at the "insured's" own cost, voluntarily make payment, assume obligation or incur expense other than for first aid to others at the time of the "bodily injury." 4. -Duties of an Injured Person - Coverage F - Medical Payments to Others. The injured person or someone acting for the injured person will: a. Give us written proof of claim, under oath if re- quired, as soon as is practical; and b. Authorize us to obtain copies of medical reports and records. The injured person will submit to a physical exam by a doctor of our choice when and as often as we reason- ably require. 5. Payment of Claim • Coverage F - Medical Payments to Others. Payment under this coverage is not an admis- sion of liability by an "insured" or us. 6. Suit Against Us. No action can be brought against us unless there has been compliance with the policy pro- visions. No one will have the right to join us as a party to any action against an "insured." Also, no action with re- spect to Coverage E can be brought against us until the obligation of the "insured" has been determined by final judgment or agreement signed by us. 7. Bankruptcy of an Insured. Bankruptcy or insolvency of an "insured" will not relieve us of our obligations under this policy. 8. Other Insurance - Coverage E • Personal Liability. This insurance is excess over other valid and collectible in- surance except insurance written specifically to cover as excess over the limits of liability that apply in this policy. SECTION 1 AND II - CONDITIONS 1. Policy Period. This policy applies only to loss in Section I or "bodily injury" or "property damage" in Section II, which occurs during the policy period. 2. Concealment or Fraud. The entire policy will be void, if, whether before or after a loss, an "insured" has: a. Intentionally concealed or misrepresented any mate- rial fact or circumstance; b. Engaged in fraudulent conduct; or 3.. HO 0003 (04-91) Page 17 of 18 c. Made false statements; relating to this insurance. Liberalization Clause. If we make a change which broadens coverage under this edition of our policy with- out additional premium charge, that change will auto- matically apply to your insurance as of the date we implement the change in your state, provided that this implementation date falls within 60 days prior to or during the policy period stated in the Declarations. - Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 21 of 41 POLICY NUMBER This Liberalization Clause does not apply to changes implemented through introduction of a subsequent edi- tion of our policy. 4. Waiver or Change of Policy Provisions. A waiver or change of a provision of this policy must be in writing by us to be valid.' Our request for an ap- praisal or examination will not waive any of our rights. 5. Cancellation. a. You may cancel this policy at any time by returning it to us or by letting us know in writing of the date cancellation is to take effect. b. We may cancel this policy only for the reasons stated below by letting you know in writing of the date cancellation takes effect. This cancellation no- tice may be delivered to you, or mailed to you at your mailing address shown in the Declarations. Proof of mailing will be sufficient proof of notice. (1) When you have not paid the premium, we may cancel at any time by letting you know at least 10 days before the date cancellation takes effect. (2) When this policy has been in effect for less than 60 days and is not a renewal with us, we may cancel for any reason by letting you know at feast 10 days before the date cancellation takes effect. (3) When this policy has been in effect for 60 days or more, or at any time if it is a renewal with us, we may cancel: (a) If there has been a material misrepresen- tation of fact which if known to us would have caused us not to issue the policy; or (b) If the risk has changed substantially since the policy was issued. This can be done by letting you know at least 30 days before the date cancellation takes effect. (4) When this policy is written for a period of more than one year, we may cancel for any reason at anniversary by letting you know at least 30 days before the date cancellation takes effect. Copyright, insurance Services Office, Inc., 1990 c. When this policy is cancelled, the premium for the period from the date of cancellation to the expiration date will be refunded pro rata. d. If the return premium is not refunded with the notice of cancellation or when this policy is returned to us, we will refund it within a reasonable time after the date cancellation takes effect. 6. Nonrenewal. We may elect not to renew this policy. We may do so by delivering to you, or mailing to you at your mailing address shown in the Declarations, written notice at least 30 days before the expiration date of this policy. Proof of mailing will be sufficient proof of notice. 7. Assignment. Assignment of this policy will not be valid unless we give our written consent. S. Subrogation. An "insured" may waive in writing before a loss all rights of recovery against any person. If not waived, we may require an assignment of rights of re- covery for a loss to the extent that payment is made by us. It an assignment is sought, an "insured" must sign and deliver all related papers and cooperate with us. Subrogation does not apply under Section II to Medical Payments to Others or Damage to Property of Others. 9. Death. If any person named in the Declarations or the spouse, if a resident of the same household, dies: a. We insure the legal representative of the deceased but only with respect to the premises and property of the deceased covered under the policy at the time of death; b. "Insured" includes: (1) any member of your household who is an "in- sured" at the time of your death, but only while a resident of the "residence premises"; and (2) With respect to your property, the person having proper temporary custody of the property until appointment and qualification of a legal repre- sentative. HO 0003 (04-91) Page 18 of 18 Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 22 of 41 POLfCY NUMBER NO Section II - Liability Coverages for Home Day Care Business LIMITED Section 1 - Property Coverages for Home Day Care Business If an "insured" regularly provides home day care services to a person or persons other than "insureds" and receives monetary or other compensation for such services, that enterprise is a "business." Mutual exchange of home day care services, however, is not considered compensation. The rendering of home day care services by an "insured" to a relative of an "insured" is not considered a "business." Therefore, with respect to a home day care enterprise which is considered to be a "business," this policy: 1. Does not provide Section I1 • Liability Coverages because a "business" of an "insured" is excluded under exclusion 1.b. of Section II - Exclusions; 2. Does not provide Section I - Coverage 6 coverage where other structures are used in whole or in part for "busi- ness"; HO 0496 (04-91) 3. Limits coverage for property used on the "residence premises" for the home day care enterprise to $2,500, because Coverage C - Special Limits of Liability - item 8. imposes that limit on "business" property on the "residence premises." (Item 8. corresponds to item 5, in Form HO 0008.); 4. Limits coverage for property used away from the "resi- dence premises" for the home day care enterprise to $250, because Coverage C - Special Limits of Liability - item 9. imposes that limit on "business" property away from the "residence premises." Special Limit of Liability item 9. does not apply to adaptable electronic apparatus as described in Special Limit of Liability items 10. and 11. (Items 9., 10. and 11. correspond to items 6., 7. and 8. respectively in Form HO 0008.) THIS ENDORSEMENT DOES NOT CONSTITUTE A REDUCTION OF COVERAGE. Copyright, Insurance Services Office, Inc., 1990 Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 23 of 41 POLICY NUMBER homeowners POLICY COVERAGE AMENDMENTS SECTION t • PROPERTY COVERAGES ADDITIONAL COVERAGES We will pay up to $1,000 for Credit Card, Fund Transfer Card, Forgery and Counterfeit Money coverage provided in Item 6. of the policy form attached. SECTION II • LIABILITY COVERAGES SECTION If • EXCLUSIONS 1. Exclusion 1.b. does not apply to the following incidental business pursuits. The delivering of newspapers, babysitting, caddying, caring for lawns or other similar incidental business pursuits conducted by an "insured" who has not attained the age of 18 years. 2. Exclusion 1.g. is replaced with the following: g. Arising out of: (1) The ownership, maintenance, use, loading or unloading of an excluded watercraft described below; (2) The entrustment by an "insured" of an excluded watercraft described below to any person; or (3) Vicarious liability, whether or not statutorily imposed, for the actions of a child or minor using an excluded watercraft described below. Excluded watercraft are those that are principally designed to be propelled by engine power or electric motor, or are sailing vessels, whether owned by or rented to an "insured." This exclusion does not apply to watercraft. (1) That are not sailing vessels and are powered by: (a) Inboard or inboard-outdrive engine or motor power of 50 horsepower or less not:owned by an 'insured"; (b) Inboard or inboard-outdrive engine or motor power of more than 50 horsepower not owned by or rented to an "insured"; (c) Inboard or inboard-outdrive engine or motor power of.50 horsepower or less and 15 feet or less in overall length and owned by an "insured"; (d) One or 'more outboard engines or motors regardless of total horsepower. (2) That are sailing vessels, with or without auxiliary power: (a) Less than 26 feet in overall length; (b) 26 feet or more in overall length, not owned by or rented to an "insured." (3) That are stored; HO 7002 (06-06) Page 1 of 2 Insnts MpkinsurracComany' 471 East Broad Street, Columbus, Ohio 43215-3861 Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 24 of 41 POLICY NUMBER hoiIieowners ammunitainium MUTUAL PROVISIONS Annual Meeting The annual meeting of the membership of the company is held at its home office in Columbus, Ohio on the fourth Monday in April of each year at- one o'clock p.m. unless said day is a holiday in which event the next succeeding day, not a holiday. Nonassessable This policy is nonassessable, While this policy is in force, the named insured is a member of the company and, as such, is entitled to the privileges provided by the by-laws of the company. In Witness Whereof, Motorists Mutual Insurance Company has caused this policy to be signed by its President and Secretary at Columbus, Ohio. HO 7002 (06-06) /26t -d Secretary President and COO Page 2_ of 2 Case 1:13-cv-02724-YK Document 1-3 flied -11/06/13 Page 25 of 41 POLICY NUMBER Identity Fraud Expense Coverage HO 7050 (09-04) THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. The following Additional Coverage is added under Section I: IDENTITY FRAUD EXPENSE We will pay up to $15,000 for "expenses" incurred by an "insured" as the direct result of any one "identity fraud" first discovered or learned of during the policy period. Any act or series of acts committed by one or more per- sons, or in which such person or persons are aiding or abetting others against an "insured," is considered to be one "identity fraud," even if a series of acts continues into a subsequent policy period. This coverage is additional insurance. EXCLUSIONS The following additional exclusions apply to this coverage: We do not cover: 1. Loss arising out of or in connection with a "business." 2. "Expenses" incurred due to any fraudulent, dishonest or criminal act by an "insured" or any person aiding or abetting an "insured," or by any authorized represen- tative of an "insured," whether acting alone or in collu- sion with others. 3. Loss other than "expenses." SPECIAL DEDUCTIBLE We will pay only that part of the loss that exceeds $250. No other deductible applies to "identity fraud" expense coverage. SECTION I • CONDITION 2. Your Duties:After Loss The following is added: Send to us, within 60 days after our request. receipts, bills or other records that support your claim for "expenses" under "identity fraud" coverage. All other provisions on this policy apply. DEFINITIONS With respect to the provisions of this endorsement only, the following definitions are added: 1. "Identity fraud" means the act of knowingly transferring or using, without lawful authority, a means of identifi- cation of an "insured" wilt} the intent to commit, or to aid or abet another to commit, any unlawful activity that constitutes a violation of federal taw or a felony under any applicable state or local law. 2. "Expenses" means: a. Costs for notarizing affidavits or similar documents attesting to fraud required by financial institutions or similar credit grantors or credit agencies. b. Costs for certified mail to law enforcement agencies, credit agencies, financial institutions or similar credit grantors. c. lost income resulting from time taken off work to complete fraud affidavits, meet with or talk to law enforcement agencies, credit agencies and/or legal counsel, up to a maximum payment of $200 per day. Total payment for lost income is not to exceed $5,000. d. Loan application fees for re -applying for a loan or loans when the original application is rejected solely because the lender received incorrect credit informa- tion. e. Reasonable attorney fees incurred as a result of "identity fraud" to: (1) Defend lawsuits brought against an "insured" by merchants, financial institutions or their collection agencies; (2) Remove any criminal or civil judgments wrongly entered against an "insured"; and (3) Challenge the accuracy or completeness of any information in a consumer credit report. Charges incurred for long distance telephone calls to merchants, law enforcement agencies, financial in- stitutions or similar credit grantors, or credit agen- cies to report or discuss an actual "identity fraud." Includes copyrighted material of ISO Properties, Inc., with its permission. Copyright, ISO Properties, Inc_, 2002 Motorists Mutual Insurance Company HO 7050 (09-04) Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 26 of 41 POUCY NUMBER Waterbed Coverage HO 7125 (01-95) THIS ENDORSEMENT CHANGES THE POUCY. PLEASE READ IT CAREFULLY. The following provisions are added to this policy: SECTION I We insure for direct physical loss to property covered under Section I caused by accidental discharge of water from within a waterbed. This coverage does not apply to loss on the "residence premises" resulting from freezing while the dwelling is unoccupied unless you have used reasonable care to maintain heat in the dwelling. SECTION If Coverage E - Personal Liability applies to "property damage" arising out of an "insured's" ownership or use of a waterbed in the residence occupied by the "insured.' All other provisions of this policy apply. Motorists Mutual Insurance Company Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 27 of 41 POLICY NUMBER Special Provisions - Pennsylvania THIS ENDORSEMENT CHANGES THE Throughout this policy, the following is added to any pro- vision which uses the term actual cash ;value: Actual cash value is calculated as the amount it would cost to repair or replace covered property, at the time of loss or damage, with material of like kind and quality, subject to a deduction for deterioration, depreciation and obsolescence. Actual cash value applies to valuation of covered property regardless of whether that property has sustained partial or total loss or damage, The actual cash value of the lost or damaged property may be significantly less than its replacement cost. SECTION I - PROPERTY COVERAGES COVERAGE C - Personal Property Special Limits of Liability items 10. and 11. are deleted and replaced by the following (These are items 7. and 8. in form HO 0008): 10. $1000 for loss to electronic apparatus, while in or upon a motor vehicle or other motorized land conveyance, if the electronic apparatus is equipped to be operated by power from the electrical system of the vehicle or con- veyance while retaining its capability of being operated by other sources of power. Electronic apparatus in- cludes: a. Accessories and antennas; or b. Tapes, wires, records, discs or other media; for use with any electronic apparatus described in this item 10. 11. $1000 for loss to electronic apparatus, while not in or upon a motor vehicle or other motorized land convey- ance, if the electronic apparatus: a. Is equipped to be operated by power from the elec- trical system of the vehicle or conveyance while re- taining its capability of being operated by other sources of power; b. Is away from the "residence premises"; and c. Is used at any time or in any manner for any "bu- siness" purpose. HO 7137 (08-10) POLICY. PLEASE READ IT CAREFULLY. Electronic apparatus includes: a. Accessories and antennas; or b. Tapes, wires, records, discs or other media; for use with any electronic apparatus described in this item 11. Property Not Covered Item 3.b. is deleted and replaced by the following: 3. Motor vehicles or all other motorized land conveyances. This includes: b. Electronic apparatus that is designed to be operated solely by use of the power from the electrical system of motor vehicles or all other motorized land con- veyances. Electronic apparatus includes: (1) Accessories or antennas; or (2) Tapes, wires, records, discs or other media; for use with any electronic apparatus described in this item 3.b. The exclusion of property described in 3.a. and 3.b. above applies only while the property is in or upon the vehicle or conveyance. We do cover vehicles or conveyances not subject to motor vehicle registration which are: a. Used to service an "insured's" residence; or b. Designed for assisting the handicapped; COVERAGE D - Loss of Use • For all forms other than HO 0004 and HO 0006, Item 1. is deleted and replaced by the following: 1. If a loss covered under this Section makes that part of the "residence premises" where you reside not fit to live in, we cover the Additional Living Expense, meaning any necessary increase in living expenses incurred by you so that your household can maintain its normal standard of living. Payment will be for the shortest time required to repair or replace the damage or, if you permanently relocate, the shortest time required for your household to settle elsewhere. HO 7137 (08-t0) Page 1 of 7 Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 28 of 41 POLICY NUMBER For forms HO 0004 and HO 0006, Item 1. is deleted and replaced by the following: 1. If a loss by a Peril Insured Against under this polis; to covered property or the building containing the property makes the "residence premises" not fit to live in, we cover the Additional Living Expense, meaning any nec- essary increase in living expenses incurred by you so that your household can maintain its normal standard of living. Payment will be for the shortest time required to repair or replace the damage or, if you permanently relocate, the shortest time required for your household to settle elsewhere. ADDITIONAL COVERAGES 1. Debris Removal is deleted and replaced by the following: 1. Debris Removal A. We will pay your reasonable expense for the removal of: (1) Debris of covered property if a Peril Insured Against that applies to the damaged property causes the loss; or (2) Ash, dust or particles from a volcanic eruption that has caused direct loss to a building or pro- perty contained in a building. This expense is included in the limit of liability that applies to the damaged property. If the amount to be paid for the actual damage to the property plus the debris removal expense is more than the limit of liability for the damaged property, an additional 5% of the limit of liability is available for debris re- moval expense. (The second sentence of this para- graph does not apply to Form HO 0008.) B.(1) If circumstances of a loss meet those specified in (2) below, we will pay your reasonable ex- pense, up to $500, for the removal from the "residence premises" of: a. Your tree(s) felled by the peril of Windstorm or Hail; b. Your tree(s) felled by the peril of Weight of Ice, Snow or Sleet (Forms HO 0002, HO 0003, HO 0004 and HO 0006 only); or c. A neighbor's tree(s) felled by a Peril Insured Against under Coverage C. The $500 limit is the most we will pay in any one loss regardless of the number of fallen trees. (2) Tree removal coverage as described in B.(1) above applies only it: a. The tree damages a structure covered under this policy; or b. Windstorm or Hail or Weight of Ice, Snow or Sleet causes damage to a structure covered un- der this policy and the Pennsylvania Governor declares the area in which the "residence prem- ises" is located to be a disaster area as a result of such weather conditions. 9. Glass or Safety Glazing Material is deleted and replaced by the following: 9. Glass or Safety Glazing Material. a. We cover: (1) For all Forms other than HO 0004 and HO 0006, the breakage of glass or safety glazing material which is part of a covered building, storm door or storm window, and for: (a) Form HO 0004, the breakage of glass or safety glazing material which is part of a building, storm door or storm window, and covered as Building Additions and Alterations; and (b) Form HO 0006, the breakage of safety glaz- ing material which is part of a building, storm door or storm window, and covered under Coverage A; and (2) For all forms other than HO 0004 and HO 0006, the breakage, caused directly by Earth Move- ment, of glass or safety glazing material which is part of a covered building, storm door or storm window, and for: (a) Form HO 0004, the breakage, caused directly by Earth Movement, of glass or safety glaz- ing material which is part of a building, storm door or storm window, and covered as Building Additions and Alterations; and HO 7137 (08-10) Page 2 of 7 Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 29 of 41 POLICY NUMBER (b) Form HO 0006, the breakage, caused directly by Earth Movement, of glass or safety glaz- ing material which is part of a building, storm door or storm window, and covered under Coverage A; and (3) The direct physical loss to covered property caused solely by the pieces, fragments or splin- ters of broken glass or safety glazing material which is part of a building, storm door or storm window. b. This coverage does not include loss: (1) To covered property which results because the glass or safety glazing material has been broken, except as provided in a.(3) above; or (2) On the "residence premises" it the dwelling has been vacant for more than 30 consecutive days immediately before the loss, except when the breakage results directly from Earth Movement as provided for in a.(2) above. A dwelling being constructed is not considered vacant. Loss to glass covered under this ADDTIONAL COVER- AGE 9. will be settled on the basis of replacement with safety glazing materials when required by ordinance or law. For Forms HO 0001 and HO 0008, we will pay up to $100 for loss under this coverage. This coverage does not increase the limit of liability that applies to the damaged property. (This is ADDITIONAL COVERAGE 8. in Forms HO 0001 and HO 0008.) The following ADDITIONAL: COVERAGE is added to all Forms except HO 0008. With respect to Form HO 0004, the words 'covered building' used below, refer to property covered under ADDITIONAL COVERAGE 10. Building Additions and Alterations. 11. Ordinance or Law. a. You may use up to 10% of the limit of liability that applies to COVERAGE A (or for Form HO 0004, you may use up to 10% of the limit of liability that ap- plies to Building Additions and Alterations) for the increased costs you incur due to the enforcement of any ordinance or law which requires or regulates: HO 7137 (08-10) Page 3 of 7 (1) The construction, demolition, remodeling, reno- vation or repair of that part of a covered building or other structure damaged by a PERIL INSURED AGAINST; (2) The demolition and reconstruction of the un- damaged part of a covered building or other structure, when that building or other structure must be totally demolished because of damage by a PERIL INSURED AGAINST to another part of that covered building or other structure; or (3) The remodeling, removal or replacement of the portion of the undamaged part of a covered building or other structure necessary to complete the remodeling, repair or replacement of that part of the covered building or other structure dam- aged by a PERIL INSURED AGAINST. b. You may use all or part of this ordinance or law coverage to pay for the increased costs you incur to remove debris resulting from the construction, demolition, remodeling, renovation, repair or re- placement of property as stated in a. above. c. We do not cover: (1) The loss in value to any covered building or other structure due to the requirements of any ordi- nance or law; or The costs to comply with any ordinance or law which requires any "insured" or others to test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of, pollutants on any cov- ered building or other structure. Pollutants means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned or reclaimed. (2) This coverage is additional insurance. (This is ADDITIONAL COVERAGE 10. in Forms HO 0001 and HO 0006.) Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 30 of 41 POLICY NUMBER SECTION I - PERILS INSURED AGAINST Under Form HO DO 03, COVERAGE A - DWELLING and COVERAGE B • OTHER STRUCTURES, item 2.e.(3) is deleted and replaced by the following: (3) Smog, rust or .other corrosion, fungus, mold, wet or dry rot; In Endorsements: - HO 0015, Special Property Coverage, this is item 1.b.(4)(c) under Section I - Perils Insured Against. HO 04 14, Special Computer Coverage, this is item B.(3)(c) under Perils Insured Against. HO 17 31, Unit -Owners Coverage C, this is item 3.d.(3) un- der Section I - Perils Insured Against. HO 17 32, Unit -Owners Coverage A, this is item 2.e.(3) un- der Perils Insured Against. SECTION I - EXCLUSIONS 1. Ordinance or Law, meaning any ordinance or law: a. Requiring or regulating the construction, demolition, remodeling, renovation or repair of property, includ- ing removal of any resulting debris. This exclusion 1.a. in all forms other than HO 0003, and 1.a.(1) in form HO 0003, and 1.a.(1) in form HO 0003, does not apply to the amount of coverage that may be provided for under ADDITIONAL COVERAGES, Glass or Safety Glazing Material or Ordinance or Law; b. The requirements of which result in a loss in value to property; or c. Requiring any "insured" or others to test for, moni- tor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of pollutants. Pollutants means any solid, liquid, gaseous or ther- mal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, recycled, reconditioned or reclaimed. This exclusion applies whether or not the property has been physically damaged. (This is exclusion 1.a. in Form HO 0003.) 2. Earth Movement is deleted and replaced by the follow- ing: 2. Earth Movement, meaning earthquake, including land shock waves or tremors before, during or after a vol- canic eruption; landslide; mine subsidence; mudflow; earth sinking, rising or shifting; unless direct loss by: a. Fire; or b. Explosion; ensues and then we will pay only for the ensuing loss. This exclusion does not apply to loss by theft. (This is exclusion 1.b. in Form HO 0003.) 4. Power Failure is deleted and replaced by the following: 4. Power Failure, meaning the failure of power or other utility service if the failure takes place off the "residence premises." But if the failure of power or other utility service results in a loss, from a PERIL INSURED AGAINST on the "residence premises," we will pay for the loss or damage caused by that PERIL INSURED AGAINST. (This is exclusion 1.d. in Form HO 0003.) 8. Intentional Loss is replaced by the following: 8. Intentional Loss a. Intentional Loss means any loss arising out of any act an "insured" commits or conspires to commit with the intent to cause a loss. In the event of such loss, no "insured" is entitled to coverage, even "insureds" who did not com- mit or conspire to commit the act causing the loss. b. However, this exclusion will not apply to deny payment to the "insured" who did not cooperate in or contribute to the creation of the loss if the foss: (1) Is otherwise covered property under Coverage A, B or C of the policy; and (2) Arises out of abuse to that innocent "in- sured" by another "insured." With respect to this provision, abuse means: (a) Abuse as defined in the Pennsylvania Protection From Abuse Act; or HO 7137 (08-10) Page 4 of 7 Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 31 of 41 POLICY NUMBER (b) Attempting to cause or intentionally, knowingly or recklessly causing damage to covered property so as to intimidate or attempt to control the behavior of an- other person. If we pay a claim under this provision 8.b., our payment to the "insured" is limited to that "insured's" insurable interest in the property. In no event will we pay more than the Limit of Li- ability. (This is exclusion 1.h. in form HO 0003.) SECTION I - CONDITIONS 2. Your Duties After Loss. Under all Forms, item 2.a. is deleted and replaced by the following: a. Give prompt notice to us or our agent except for loss caused by wind or hail. (1) Special wind or hail loss notice provision: (a) Give notice to us or our agent for loss caused by wind or hail within one year after the date of the loss. (b) We will not pay for loss caused by wind or hail unless notice is given to us or our agent within one year after the date of loss. Under 3. Loss Settlement in Forms HO 0002 and HO 0003, item b.(1) is deleted and replaced by the following: b. Buildings under Coverage A or B at replacement cost without deduction for depreciation, subject to the following: (1) If, at the time of loss, the amount of insurance in this policy op the damaged building is 80% or more of the full replacement cost of the building immediately before the loss, we will pay the cost to repair or replace, after application of the deductible and without deduction for depre- ciation, but not more than the least of the fol- lowing amounts: (a) The limit of liability under this policy that applies to the building; (b) The replacement cost of that part of the building damaged; or (c) The necessary amount actually spent to re- pair or replace the damaged building. The replacement cost will not exceed that nec- essary for like construction and use on the same premises; regardless of whether the replacement building or repaired building is located on the same or at different premises. 3. Loss Settlement. Under Form HO 0006, item b.(2) is deleted and replaced by the following: (2) If the damage is not repaired or replaced within a reasonable time, at actual cash value but not more than the amount required to repair or re- place. 9. Our option is deleted and replaced by the following: 9. Our Option. We may repair or replace any part of the damaged property with like property if we give you written notice of our intention to do so within 15 work- ing days after we receive your signed, sworn proof of loss. SECTION II - LIABILITY COVERAGES Item 1. Coverage E • Personal Liability is deleted and re- placed by the following: 1. Pay up to our limit of liability for the damages for which the "insured" is legally liable; and Under Coverage F - Medical Payments to Others: Medical expenses do not include expenses for funeral ser- vices. SECTION II • EXCLUSIONS Under 1. COVERAGE E - Personal Liability and COVERAGE F - Medical Payments to Others, paragraph a. is deleted and replaced by the following: a. Which is expected or intended by one or more "in- sureds"; SECTION H • ADDITIONAL COVERAGES Under 1. Claim Expenses, the following paragraph is added: e. Prejudgment interest awarded against the "insured" on that part of the judgment we pay. Any prejudg- ment interest awarded against the "insured" is sub- ject to the applicable Pennsylvania Rules of Civil Procedure. SECTIONS I AND II • CONDITIONS 2. Concealment or Fraud is deleted and replaced by the following: HO 7137 (08-10) Page 5 of 7 Case 1:13-cv-02724-YK ` Document 1-3 Filed 11/06/13 Page 32 of 41 POUCY NUMBER 2. Concealment or Fraud. a. Under SECTION I - Property Coverages, with respect to all "insureds" covered under this policy, we pro- vide no coverage for loss under SECTION I - Prop- erty Coverages if, whether before or after a loss, one or more "insureds' ---have: (1) Intentionally concealed or misrepresented any material fact or circumstance; (2) Engaged in fraudulent conduct; or (3) Made false statements; relating to this insurance. b. Under SECTION II • Liability Coverages, we do not provide coverage to one or more "insureds" who, whether before or after a loss, have: (1) Intentionally concealed or misrepresented any material fact or circumstance; (2) Engaged in fraudulent conduct; or (3) Made false statements; relating to this insurance. 5. Cancellation. Paragraph b. is deleted and replaced by the following: b. We may cancel this policy only for the reasons stated below by notifying the "insured" in writing of the date cancellation takes effect. This cancellation notice may be delivered to or mailed to the "insured" named in the Declarations at the mailing address shown in the policy or at a forwarding address. Proof of mailing will be sufficient proof of notice. (1) When this policy has been in effect for less than 60 days and is not a renewal with us, we may cancel for any reason by notifying the "insured" named in the Declarations at least 30 days before the cancellation takes effect. (2) When this policy has been in effect for 60 days or more, or at any time if it is a renewal with us, we may cancel only for one or more of the following reasons by notifying the "insured" named in the Declarations at least 30 days prior to the proposed cancellation date: (a) This 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 us; (b) There has been a substantial change •or crease in hazard in the risk assumed by us subsequent to the date the policy was is- sued; (c) There is a substantial increase in hazard in- sured against by reason of willful or negligent acts or omissions by the "insured"; (d) The "insured" has failed to pay the premium by the due date, whether payable to us or to our agent or under any finance or credit plan; or (e) For any other reason approved by the Penn- sylvania Insurance Commissioner. This provision shall not apply if the named "in- sured" has demonstrated by some overt action to us or to our agent that the "insured" wishes the policy to be cancelled. Delivery of such written notice by us to the "in- sured" named in the Declarations at the mailing address shown in the policy or at a forwarding address shall be equivalent to mailing. 5. Nonrenewal is deleted and replaced by the following: 6. Nonrenewal. We will not fail to renew this policy except for one of the reasons referred to in the Cancellation Provision of this endorsement. We may refuse to renew for one of the listed reasons by mailing to the "insured" named in the Declarations at the mailing address shown in the policy or at a forwarding address, written notice at least 30 days prior to the expiration date of this pol- icy, This provision does not apply if: a. We have indicated our willingness to renew and the "insured" has failed to pay the premium by the due date; or b. The named "insured" has indicated to us or our agent that the "insured" does not wish the policy to be renewed. IiO 7137 (08-10) Page 6 of 7 Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 33 of 41 POLICY NUMBER Delivery of such written notice by us to the "insured" named in the Declarations at the mailing address shown in the policy or at a forwarding address shall be equivalent to mailing. 9. Death. Paragraph b. is deleted and the following added; b. Insurance under this policy will continue as provided in (1) or (2) below, whichever is later: (1) For 180 days after your death regardless of the policy period shown in the Declarations, unless your premises and property, covered under the policy at the time of your death, is sold prior to that date; or (2) Until the end of the policy period shown in the Declarations, unless your premises and property, covered under the policy at the time of your death, is sold prior to that date. Coverage during the period of time after your death is subject to all the provisions of this policy including payment of any premium due for the policy period shown in the Declarations and any extension of that period; c. "Insured" includes: (1) Any member of your household who is an "in- sured" at the time of your death, but only while a resident of the "residence premises"; and (2) With respect to your property, the person having proper temporary custody of the property until appointment and qualification of a legal repre- sentative. All other provisions of this policy apply. Includes copyrighted material of ISO Properties, Inc., with its permission. Copyright, ISO Properties Inc., 2006 Motorists Mutual Insurance Company HO 7137 (08-10) Page 7 of 7 Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 35 of 41 POLICY NUMBER Preferred Homeowners Endorsement HO 7140 (12-05) (Form HO 0002 or HO 0003) THIS ENDORSEMENT CHANGES THE POUCY. PLEASE READ IT CAREFULLY. The following provisions are added to this policy. SECTION I - REPLACEMENT OR REPAIR COST PROTECTION • COVERAGE A - DWELLING We agree to amend the present coverage amounts indicated on the Declarations page in accordance with the following pro- visions. 1. If you have: a. allowed us to adjust the Coverage A limit of liability and the premium in accordance with: (1) the property evaluations we make; and (2) any increase in inflation; and b. notified us, within 30 days of completion, of any alterations to the dwelling which increase the replacement cost of the dwelling by 5% or more; and c: elected to repair or replace the damaged building; We will: a. increase the Coverage A limit of liability up to 50% if the amount of loss to the dwelling is more than the limit of liability indicated on the Declarations page. The limits of liability for Coverages B, C and D remain the same as indicated on the Declarations page: b. on the day after the loss adjust the limits of liability and premium for the remainder of the policy term for Coverages B, C and D by the same percentage increase as applied to Coverage A. 2. If you comply with the provisions of this endorsement and there is a loss to a building insured 'under Coverage A, Section I Condition 3. Loss Settlement paragraph b. is deleted and replaced by paragraphs b., c. and d. as follows: b. Buildings under Coverage A or B at replacement cost without deduction for depreciation. We will pay no more than the smallest of the following amounts for equivalent construction and use on the same premises: (1) the replacement cost of the building or any parts of it; (2) the amount actually and necessarily spent to repair or replace the building or any parts of it: (3) the applicable limit of liability whether increased or not, adjusted in accordance with paragraph 1. above. c. We will pay no more than the actual cash value of the damage until actual repair or replacement is completed. d. You may disregard the replacement cost loss settlement provisions and make claim under this policy for loss or damage to buildings on an .actual cash value basis and then make claim within 180 days after loss for any additional liability on a replacement cost basis. This coverage does not apply to land, including land on which the dwelling or structures are located. ANIMALS, BIRDS OR FISH We cover animals, birds or fish owned by an insured only while on the insured "residence premises" subject to all policy provisions applicable to Coverage C - Personal Property with the following conditions, exceptions and limitations: HO 7140 (12-05) Page 1 of 3 Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 36 of 41 POLICY NUMBER 1. Except for loss from theft, we cover only the death or necessary destruction of animals, birds or fish, and only when the direct result of a Peril Insured Against. 2. Our limit of liability shall not exceed S500. 3. We will not cover any loss resulting from vehicles, 4. The provisions in Form HO 0015, if attached, do not apply to this coverage. 5. No deductible applies to this coverage. DEBRIS REMOVAL - TREES, SHRUBS AND OTHER PLANTS We will pay the reasonable expense incurred by you in the removal of debris of trees, shrubs and other plants, from the "residence premises," when the damage is caused by windstorm, hail, or weight of ice, snow or sleet. Our limit of liability for this coverage shall not exceed $500. This coverage applies only when not provided elsewhere in policy forms attached. Any deductible applicable to Section I applies to this coverage, but only one deductible amount shall be applied to each oc- currence. PERSONAL PROPERTY COVERAGE EXTENSION Coverage on personal property described in Coverage C is extended to include the perils of flood, earthquake, landslide, mudflow and collision or overturn of a transporting conveyance only while the property is away from any. premises or location owned by an insured. Our limit of liability for this coverage shall not exceed $1,000. This coverage extension applies only when coverage is not provided elsewhere in the policy forms attached. Any deductible applicable to Section I applies to this coverage. Section I Exclusions 2 and 3 of Form HO 0002 and Section I Exclusions 1.0. and 1.c. of Form HO 0003 do not apply to any coverage that is provided by this coverage extension. POWER INTERRUPTION COVERAGE 0 - Loss of Use The following item is added: 4. If an interruption of power or other utility service away from the "residence, premises," caused by a Peril insured Against in this policy, makes the "residence premises" uninhabitable, we cover any resulting Additional Living Expense and Fair Rental Value loss for a period of time not exceeding one week during which the "residence premises" is uninhabitable. Coverage commences 48 hours after the "residence premises" is made uninhabitable. The period of time under this item is not limited by expiration of this policy. Section I Exclusion 4 of Form HO 0002 and Section I Exclusion 1.d. of Form HO 0003 do not apply to coverage provided in this item. PROHIBITED USE COVERAGE D - Loss of Use The lollowing section is added to Item 3: If a civil authority prohibits you from use of the "residence premises" due to endangerment from a Peril Insured Against, we cover any resulting Additional Living Expense and Fair Rental Value loss for a period of time not exceeding one week during which use is prohibited. Coverage commences 48 hours after use has been prohibited. HO 7140 (12-05) Page 2 of 3 Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 37 of 41 POLICY NUMBER REFRIGERATED PROPERTY We insure, up to $500, covered property stored in freezers or refrigerators on the "residence premises" for direct loss caused by: 1. Interruption of electrical service to the refrigeration unit. The interruption must be caused by damage to the generating or transmitting equipment; or 2. Mechanical failure of the unit storing the property. Coverage will apply only if you have maintained the refrigeration unit in proper working condition immediately prior to the loss. This coverage does not increase the limit of liability for Coverage C • Personal Property. The Section I • Power Failure exclusion does not apply to this coverage. Special Deductible The following deductible applies to covered loss to refrigerated property: We will pay only that part of the loss that exceeds $100. No other deductible applies to this coverage. SECTION II - PERSONAL INJURY COVERAGE E - Personal Liability The definition of "bodily injury" is amended to include personal injury. "Personal injury" means injury arising out of one or more of the following offenses: a. false arrest, detention or imprisonment, or malicious prosecution; b. libel, slander, or defamation of character; or C. invasion of privacy. wrongful eviction, or wrongful entry. Section ii Exclusions do not apply to personal injury. Personal injury insurance does not apply to: a. liability assumed by the "insured" under any contract or agreement except any indemnity obligation assumed by the "in- sured" under a written contract directly relating to the ownership, maintenance or use of the premises; b. injury caused by a violation of a penal law or ordinance committed by or with the knowledge or consent of an "insured:" c. injury sustained by any person as a result of an offense directly or indirectly related to the employment of this person by the "insured": d. injury arising out of or in connection with a "business" engaged in by an "insured." This exclusion applies but is not limited to an act or omission, regardless of its nature or circumstance, involving a service or duty rendered, promised, owed, or implied to be provided because of the nature of the "business"; e. civic or public activities performed for pay by an "insured"; or f. injury to you or an "insured" within the meaning of part a. or b. of "insured" as defined, Additional Coverage Under Section II • Liability Coverages, the definition of "insured location" is extended to include a Time -Share residence owned by and deeded to the Named Insured. Also, any residence or similar joint ownership Time -Share interest that may be traded or transferred as a form of Time -Share interest, shall also be included in the definition of "insured location." With respect to the deeded Time -Share premises, Exclusion l.c. under Section II • Exclusions - Coverage E - Personal Liability and Coverage F - Medical Payments to Others, does not apply. Motorists Mutual Insurance Company HO 7140 (12-05) Page 3 of 3 Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 38 of 41 POLICY NUMBER Premises Alarm or HO 7416 (04-02) Fire Protection System For a premium credit, or to qualify for your Homeowners program, we acknowledge the installation of an alarm system or automatic sprinkler system approved by us on the "residence premises." You agree to maintain this system in working -,order and to let us know promptly of any change made to the system or if it is removed. Includes copyrighted material of Insurance Services Office, Inc., with its permission Copyright, Insurance Services Office, Inc., 1990 Motorists Mutual Insurance Company Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 39 of 41 POLICY NUMBER Personal Property Replacement Cost - Pennsylvania SECTION I For an additional premium, covered losses to the following property are settled at replacement cost at the time of loss: a. Coverage C - Personal Property; b. If covered in this policy, awnings, carpeting, house- hold appliances, outdoor antennas and outdoor equipment, whether or not attached to buildings. Personal Property Replacement Cost coverage will also apply to the following articles or classes of property if they are separately described and specifically insured in this policy: a. Jewelry; b. Furs and garments trimmed with fur or consisting principally of fur; c. Cameras, projection machines, films and related ar- ticles of equipment; d. Musical equipment and related articles of equipment; e. Silverware, silver-plated ware, goldware, gold-plated ware and pewterware, but excluding pens, pencils, flasks, smoking implements or jewelry; and f. Golfer's equipment meaning golf clubs, golf clothing and golf equipment. Personal Property Replacement Cost coverage will not apply to other classes of property separately described and specifically insured. 1. PROPERTY NOT ELIGIBLE Property listed below is not eligible for replacement cost settlement. Any loss will ,be settled at actual cash value at the time of loss but not more than the amount re- quired to repair or replace, a. Antiques, fine arts, paintings and similar articles of rarity or antiquity which cannot be replaced. b. Memorabilia, souvenirs, collectors items and sim- ilar articles whose age or history contribute to their value. c. Articles not maintained in good or workable condition. d. Articles that are outdated or obsolete and are stored or not being used. HO 7363 (01-95) 2. REPLACEMENT COST The following loss settlement procedure applies to all property insured under this endorsement: a. We will pay no more than the least of the fol- lowing amounts: (1) Replacement cost at the time of loss without deduction for depreciation; (2) The full cost of repair at the time of loss; (3) The limit of liability that applies to Coverage C, if applicable; (4) Any applicable special limits of liability stated in this policy; or (5) For loss to any item separately described and specifically insured in this policy, the limit of liability that applies to the item. b. When the replacement cost for the entire loss under this endorsement is more than $1,000, we will' pay no more than the actual cash value for the loss or damage until the actual repair or replacement is complete. If the actual cash value amount is insufficient to initiate repair or replacement of the lost or damaged property, we will advance to you the amount necessary for you to initiate such repair or replacement and such further amounts nec- essary to continue the repair or replacement. The amount of loss payment we agree upon for the lost or damaged property will be reduced by any advance payment. The total of all advances and other payments hereunder will not exceed the amount allowed under 2.a. Under this loss settlement procedure, the fol- lowing special provisions apply: (1) You shall promptly forward to us evidence of the agreement with the party repairing or replacing the property which shows the cost and estimated completion date of the re- paired property or delivery date of the re- placed property. HO 7363 (01-95) Page 1 of 2 Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 40 of 41 POUCY NUMBER (2) We will send to you the balance, if any, of the loss payment previously agreed upon when you notify us of the completion of the repairs or the expected delivery date of the replaced property. (3) If you do not comply with the above terms at any time, we will pay no more than the actual cash value for the loss or damage. In such case, if the amount we advanced to you is more than the actual cash value, you shall refund the difference to us within 30 days of the date we mail our refund notice to you. c. You may make a claim for loss on an actual cash value basis and then make claim within 160 days after the loss for any additional liability in accordance with this endorsement. All other provisions of this policy apply. Includes copyrighted material of Insurance Services Office. Inc. with its permission. Copyright, Insurance Services Office, Inc., 1992 Motorists Mutual Insurance Company 140 7363 (0'1.95) Page 2 of 2 Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 41 of 41 POLICY HUMEER Inflation Protection Endorsement HO 7123 (01-95) Homeowners Policy THIS ENDORSEMENT CHANGES THE POUCY. PLEASE READ IT CAREFULLY. We will adjust the limits of liability shown in the Declarations for Coverages A, B, C and D as reflected by the change in the Residential Construction Cost Index furnished by E. H. Boeckh Co., but only when current coverage limits increase as a result of the change. We will determine policy limits on a specific date by multiplying the limits of liability by a change tactor. The factor is cal- culated by dividing the latest available index applicable at the time the Coverage A amount was last adjusted. At no time will we reduce the limits of liability to amounts less than those shown in the Declarations. Ali other provisions of this policy apply. Motorists Mutual Insurance Company Case 1:13-cv-02724-YK Document 1-4 Filed 11/06/13 Page 1 of 2 The Motorists Insurance Group,You Know use P.O. Box 182476, Columbus, Ohio 43218-2476 www.r.3otorstgroup.com March 26, 2013 SCOT":C .FARR.EI.;L 5 HILLTOP CM CARLISLE PA 17013 Claim number : 5468376 Insured SCOTT FARRE1 KATHLEEN F_ARRELL Date of occurrence : 03/20/2013 Dear Mr. Farrell, This will a.claiowledge receipt of the Complaint Ailed against you, Kathleen, and Scott Jr. in. Cumberland County Court of Pennsylvania. W e must advise you that while Motorists Mutual will be providing for your defense., there are allegations asserted and damages requested in the Complaint for which, if proven, there may be no coverage available throw 3 . the policy of insurance that Motorists Mutual issued to you. Allegations of negligence may not be subject to coverage through the policy of insurance for there are exclusionary provisions within the policy of insurance and its amendatory endorsements that may exclude all or a portion of these claims. Directing your attention to the policy of insurance, the Homeowners Coverage Form HO 003 (04/91), it provides: Section II- Liability Coverages If a claim is made or a suit is brought against an "insured" for damages because of "bodily injury" or "property damage" .aise;by an"occurrence" to which this coverage applies, we will: l: 1. Pay up to our limit of liability for the damages for which the "insured" is legally liable. Damages include prejudgment interest awarded against the "insured"; and 2. Provide a defense at our expanse ny counsel of our choice, even if the suit i.s groundless, false or fraudulent. We may investigate and settle any claim or suit that we decide is appropriate. Our duty to settle or defend ends when tine amount we pay for damages resulting from the "occurrence" equals our limit of liability. Section II- Exclusions k. Arising out of sexual molestation, corporal punishment or physical or mental abuse; The Motorists lneursn:.e Group M,)cr.'.',a MaAua4 its: ranch Compere/ Metor Wil. Co,rnntrc h,iMutl,ei i'>fiutar,, a Cc npany t;4imn Muluai Ine,,,w, a Gee -Tarry PrV te-4a t.ite h,,u ereee Co,^patty NCM Inserence Ar,eecy, Inn. Stood Sueet t3.'ei;eree. LLC MICf3 Ire .'nonce Ciaropnny knee Meiva! insurance Cunt cry Arleta ✓«mrricrnr insurer ea Cowel r hn,, a Mnk,et arC !wewEwce C Case 1:13-cv-02724-YK Document 1-4 Filed 11/06/13 Page 2 of 2 Recognizing that all others terms and conditions under Motorists Mutual policy 7169310270, and any policies previously or subsequently issued in your name by Motorists Mutual shall be applicable and unchanged unless otherwise provided by Motorists Mutual. As such, Motorists Mutual will not waive any of the terms or conditions of the aforementioned policy or any previous or subsequent policies that fotoifsts Mutual has issued in your name. Motorists Mutual will continue to reserve its rights with regard to assertions andlor defenses under the terms, conditions and definitions of the policy issued to you. In the event that itis deter?riined that some or all of the claims asserted in the complaint. are not covered, Motorists Mutual expressly reserves it right to allocate between covered and non -covered payments of settlement, judgments, defense :tees and costs and to seek reimbursement front you. No payments by Motorists Mutual of settlement, judgments, defense fees and costs shall constitute, a waiver of Motorists Mutual's i ghl to later sock allocation and reimbursement of such settlement, judgments, defense fees and costs on the grounds that there is no duty to defend or indemnify all or a portion of the action. Motorists Mutual will proceed with the understanding that it does riot waive any of the provisions or defenses, and Motorists Mut°.ia1 reserves its right to withdraw from the handling of this litigation at any time, before or after judgment, if it is determined that coverage is not available or offered under the policy of insurance Issued in your name. Accordingly, Motorists Mutual reserves its right to seekjudicial determination of its obligations under the policy. By undertaking any action that Motorists Mutual deems necessary, Motorists Mutual does not waive any defense to coverage that may exist to this claim under the policy or the law, whether asserted herein or not. Motorists Mutual does not waive any defense to coverage not asserted herein and may assert any such defense at any time. Recognizing that there is potential for personal exposure we would be remiss if we tied riot advise you of its right to retain personal. counsel, at your own expense to represent your interest with respect to any personal exposure not covered under the policy of insurance. While you are under no obligation to do so, should you choose to engage personal counsel, we assure you that the attorney that Motorists Mutual has requested to provide for'its defense with respect to this specific lawsuit will fully 'cooperate with any attorney that you may engage. Should you have any questions or concerns, please do not hesitate to contact the undersigned. Sincerely, Motorists Mutual Insurance Company TREY ?U'NEGAR STAFF A t i ORNEY (614) 220-6934 OR (800) 876-8766 FAX: (866) 790-6431 TREY.HENI OAR(i MOTORISTSGRCUP.CCM MOTORISTS MUTUAL INSURANCE COMPANY Plaintiff, v. SCOTT FARRELL, SR., and KATHLEEN FARRELL and SCOTT FARRELL, JR. and E. G., a minor, by J. G. and S. G., her parents and natural guardians. Defendants. COURT OF COMMON PLEAS CUMBERLAND COUNTY CIVIL ACTION NO.: 14-1818 ORDER AND NOW, this day of , 2014, upon consideration of Plaintiff, Motorists Mutual Insurance Company's Motion for Judgment on the Pleadings and Defendants responses thereto, it is hereby ORDERED and DECREED that said motion is GRANTED and that Motorists Mutual Insurance Company is not obligated to defend or indemnify Scott Farrell, Jr., Scott Farrell, Sr. and Kathleen Farrell against the claims set forth in the Civil Action Complaint filed by E.G., a Minor, by J.G. and S.G., her parents and natural guardians, in the Cumberland County Court of Common Pleas. J. PRAECIPE FOR LISTING CASE FOR ARGUMENT (Must be typewritten and submitted in triplicate) TO THE PROTHONOTARY OF CUMBERLAND COUNTY: (List the within matter for the next Argument Court.) MOTORISTS MUTUAL INSURANCE COMPANY Plaintiff, v. COURT OF COMMON PLEAS CUMBERLAND COUNTY SCOTT FARRELL, SR., and_a KATHLEEN FARRELL and CIVIL ACTION NO.: 14-1818 SCOTT FARRELL, JR. and E. G., a minor, by J. G. and S. G., her parents and natural guardians. r Defendants. 2 o CD C2 1. State matter to be argued (i.e., plaintiff's motion for new trial, defendant=ss. 'D demurrer to complaint, etc.): Motion for Judgment on the Pleadings 2. Identify all counsel who will argue cases: (a) for plaintiffs: Charles L. McNabb, Esquire, Hohn & Scheuerle, 1700 Market Street, Suite 3242, Philadelphia, PA 19103 (b) for defendants: Benjamin D. Andreozzi, Esquire, Andreozzi & Associates, P.C., 215 Pine Street, Suite 200, Harrisburg, PA 17101 Thomas E. Brennan, Esquire, Goldberg, Katzman, P.C., 4250 Crums Mill Road, Suite 301, Harrisburg, PA 17112 3. I will notify all parties in writing within two days that this case has been listed for argument. 4. Argument Court Date: Signature ittC-lOa 44 Print your name Attorney for Plaintiff iq 6011 C01- 3.7d-Nzi r364( 4S Thomas E. Brenner, Esquire GOLDBERG KATZMAN, P.C. 4250 Crums Mill Road, Ste. 301 P. O. Box 6991 Harrisburg, PA 17112 (717) 234-4161 Attorney for Defendants Farrell .tolr.l;l PRO PP1 1. 3 7 CJ,pE , ER5},NO000l,T IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA Motorists Mutual Insurance Company Plaintiff v. Scott Farrell, Sr., and Kathleen Farrell, and Scott Farrell, Jr. and E.G., a minor by J.G. and S.G., her parents and natural Guardians, Defendants : No.: 14-1818 Civil DEFENDANTS FARRELL RESPONSE TO PLAINTIFF MOTORISTS MUTUAL INSURANCE COMPANY'S MOTION FOR JUDGMENT ON THE PLEADINGS AND NOW, come Defendants by and through their attorneys, Goldberg Katzman, P.C., who hereby file this Response to the Plaintiffs Motion for Judgment on the Pleadings, and in opposition thereof avers the following: 1. Denied as stated. The Complaint is a document which speaks for itself. 2. Denied. This paragraph seeks to incorporate averments of the Complaint which speaks for itself. 3. Denied. This paragraph seeks to incorporate averments of the Complaint which speaks for itself 4. Admitted. 5. Denied. The Motorists' policy is a document which speaks for itself 6. Admitted. {00701312;v1} 7. Denied. This paragraph contains unsupported conclusions of law. 8. Admitted. WHEREFORE, Defendants Farrell request that Plaintiff's Motion for Judgment on the Pleadings be denied. By: Date: vl 13 �� G {00701312;v1} Respectfully submitted, GOLDBERG KATZMAN, P.C. T omas E. Brenner, Esquire Atty No.: 32085 4250 Crums Mill Road, Ste. 301 P.O. Box 6991 Harrisburg, PA 17112 (717) 234-4161 (717) 234-6808 (facsimile) Attorney for Defendants Farrell CERTIFICATE OF SERVICE I hereby certify that I am this date serving a copy of the foregoing document upon the person(s) and in the manner indicated below, which service satisfies the requirements of the Pennsylvania Rules of Civil Procedure, by depositing a copy of same in the United States Mail, with first-class postage, prepaid as follows: Stephen A. Scheuerle, Esquire Charles L. McNabb, Esquire Hohn & Scheuerle 1700 Market Street Suite 3242 Philadelphia, PA 19103 Benjamin D. Andreozzi, Esquire Andreozzi & Associates, P.C. 215 Pine Street Suite 200 Harrisburg, PA 17101 Thomas E. Brenner, Esquire Date: S/30 1 {00701312;v1} BY: STEPHEN A. SCHEUERLE, ESQUIRE c_ SSCHEUERLE(a,DVERDICT.COM -'3 3` "' rn crn-. Identification No.: 38558 m �. s7 rte. BY: CHARLES L. McNABB, ESQUIRE 1 N c CMCNABB@DVERDICT.COM rc, Identification No.: 60494 z HOHN & SCHEUERLE a c' _F. Suite 3242 — no -' 1700 Market Street . Philadelphia, PA 19103 Attorneys for Plaintiff, 215-496-9997 (Fax) Motorists Mutual Insurance Company Our File #3500-88 MOTORISTS MUTUAL INSURANCE COMPANY Plaintiff, v. SCOTT FARRELL, SR., and KATHLEEN FARRELL and SCOTT FARRELL, JR. and E. G., a minor, by J. G. and S. G., her parents and natural guardians. Defendants. COURT OF COMMON PLEAS CUMBERLAND COUNTY CIVIL ACTION NO.: 14-1818 PLAINTIFF, MOTORISTS MUTUAL INSURANCE COMPANY'S MOTION FOR JUDGMENT ON THE PLEADINGS COMES NOW, the Plaintiff, Motorists Mutual Insurance Company ("Motorists"), and moves this Honorable Court to grant judgment on the pleadings in its favor for the reasons that follow: 1. On March 4, 2013, E.G., a minor, by J.G. and S.G., her parents and natural guardians, filed suit in the Court of Common Pleas of Cumberland County alleging that 16 year old Scott -1- Farrell, Jr., "psychologically manipulated, exploited, groomed, and ultimately sexually assaulted" the then 12 year old E.G. on various dates from January 2001 through late summer 2011. (Attached hereto as Exhibit "A" is a true and correct copy of said Complaint, as amended; see par. 15). 2. The Complaint alleges that Scott Farrell, Jr., breached a duty which required that he "not physically molest or sexually assault" E.G. (See Exh. "A", par. 25). 3. Said Complaint also alleges that Scott Farrell, Sr. and Kathleen Farrell negligently failed to adequately supervise their son, failed to warn E.G. or her parents of the risk he posed, permitted the sexual assaults to occur and, further, breached a duty "to prevent their minor son from intentionally harming Minor -Plaintiff..." (See Exh. "A", Count I generally and par. 22.h). 4. From January 15, 2011 to January 15, 2012, Motorists provided Homeowners Insurance to the Farrells under policy #0391-71-698102-70. (Attached hereto as Exhibit "B" is a true copy of the Declarations Sheet and Policy). 5. The Motorists policy excludes coverage for the following: 1. Coverage E - Personal liability...(does) not apply to "bodily injury"... a. Which is expected or intended by the "insured". [See Exh. "B", pages 13-14 of "Homeowners 3 Special Form", HO 0003 (04-91)]. Prior to the incident at issue, the "Special Provisions - Pennsylvania" Endorsement [HO 7137 (08-10) at page 5] amended this provision to exclude that "which is expected or intended by one or more `insureds'. (See Exh. "B"). The policy also excludes coverage for bodily injury: k. Arising out of sexual molestation, corporal punishment or physical or mental abuse... -2- 6. Motorists is currently providing a defense to the Farrells subject to a reservation of rights. (Attached hereto as Exhibit "C" is a true and correct copy of the reservation of rights letter dated March 26, 2013). 7. Motorists seeks a declaration from the Court that it is not obligated to defend and indemnify the Farrells with respect to any of the claims set forth in the Cumberland County action filed by E.G. and her parents. 8. Pursuant to Pa.R.C.P. 1034, any party may move for judgment on the pleadings once the relevant pleadings are closed. WHEREFORE, Plaintiff, Motorists Mutual Insurance Company respectfully requests that the Court enter judgment on the pleadings in its favor declaring that Plaintiff is not obligated to defend or indemnify Scott Farrell, Jr., Scott Farrell, Sr. and Kathleen Farrell against the claims set forth in the Civil Action Complaint filed by E.G., a Minor, by J.G. and S.G., her parents and natural guardians, in the Cumberland County Court of Common Pleas. Respectfully submitted, HOHN & SCHEUERLE DATED: BY: STEPHEN A. SCHEURLE, ESQUIRE CHARLES L. MCNABB, ESQUIRE Attorneys for Plaintiff -3- Case 1:13-cv-02724-YK Document 1-2 Filed 11/06/13 Page 1 of 13 Benjamin D. Andreozzi Attorney ID 48927; Heather E. Verc is y Attorney ID 4201310 ANDREOZZ1. & ASSOCIATES, P.C. 215 Pine St., Ste. 200 Harrisburg, PA 17101 717-525-9124 Ben(kin idstatelaw.com Attorney for Plaintiff E.G., a minor, by J.G. and S.G. her parents and natural guardians, vs. SCOTT FARRELL, SR., and KATHLEEN FARRELL and SCOll FARRELL, JR. Plaintiff's (Defendants /157,0 IN THE COURT OF COMMON PI.:EAS CUMBERLAND COUNTY, PENNSYLVANIA. No. 13-1197 Civil CIVIL ACTION - LAW NOTICE TO DEFEND AND CLAIM RIGHTS You have been sued in court. If you wish to defend against the claims set forth in the following pages, you.must take action within twenty (20) .days after this complaint and notice are served, by entering a written appearance personally or by attorney and filing in. writing with the court your defenses or objections to the claims set forth against you. You are warned that if you fail to do so the case may proceed without you and a judgment may be entered agair1_ t you by the court without further notice for any money claimed in the complaint or for any other claire or relief requested by the plaintiff. You .may lose money or property or other rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYE.R AT ONCE. IF YOU DO NOT HAVE A LAWYER, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW. THIS OFFICE CAN PROVIDE YOU WITH INFORMATION ABOUT HIRING A LAWYER. IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAY BE ABLE TO PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT MAY OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE. EXHIBIT ,tAf Case 1:13-cv-02724-YK Document 1-2 Filed 11/06/13 Page 2 of 13 Benjamin D. Andreozzi Attorney ID #89271 Heather E. Verchick Attorney ID #201310 AN:DREOZZI & ASSOCIATES, P.C. 215 Pine St., Ste. 200 Harrisburg, PA 17101 7I7-525-9124 "B enemidstatela.w. c om Attorney for Plaintiff E.G., a minor, by J.G. and S.U. her parents and natural guardians, vs. SCOTT FARRELL, SR., and KATHY •EEN FARRELL and SCOTT FARRELL, JR. Plaintiffs Defendants IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PEEti`NSYLVANIA No. 13-1197 Civil CIVIL ACTION - LAW AMENDED COMPLAINT AND.NOW come the Plaintiffs, through their counsel, Benjamin D. Andreozzi, Esq., and bring this Amended Complaint against the Defendants and aver the follow*ring: The Parties 1. Plaintiff, E.G. is a fourteen year old. resident of Cumberland County, Pennsylvania. LG.. and S.G. are her adult parents and natural guardians. Initials are used to prevent public disclosure of h.er identity since this case involves child sexual abuse. Case 1:13-cv-02724-YK Document 1-2 Filed 11/06/13 Page 3 of 13 2. Defendant Scott Farrell, Sr. is an adult individual who resides at 5 Hilltop Circle, Carlisle, PA 17015. 3. Defendant Kathleen Farrell is an adult individual who resides at 5 Hilltop Circle, Carlisle, PA 17015. 4. Defendant Scott Farrell, Jr., is an adult individual who at all times relevant resided at 5 Hilltop Circle, PA 17015, and to all belief and knowledge still resides at that address. The Abuse 5. As set forth in greater detail below, E.G. was sexually assaulted by Scott Farrell, Jr., ("Perpetrator") who is the eighteen year old son of Defendants Scott Farrell, Sr. ("Perpetrator's father") and Kathleen Farrell ("Perpetrator's mother). 6. The Perpetrator met E.G. in late January or early February of 2011 when E.G. was only twelve years old and the Perpetrator was sixteen years old. At all times relevant, E.G. and the Perpetrator lived in the same neighborhood. 8. In mid-April of 2011, E.G.'s mother mentioned to the Perpetrator's father that the Perpetrator was sho intense interest in her daughter which she thought was out of the ordinary. 9. She also advised the Perpetrator's father that the relationship must stay a friendship because it would be "illegal" for it to advance beyond a friendship and that he should closely monitor the relationship. Case 1:13-cv-02724-YK Document 1-2 Filed 11/06/13 Page 4 of 13 10. The Perpetrator's father told E.G's mother she had nothing to worry about because the Perpetrator was a "good boy" and he merely acted young for his age and gravitated towards friendships with younger kids. 11. After this conversation. E.G.'s mother discovered inforrnation which led her to believe that the Perpetrator was romantically pursuing E.G. She called the Perpetrator's father and infoirned him of her disco -very and instructed him the relationship needed to end and that Perpetrator was not welcome al her house. . 12. . It is believed and therefore averred that in late March, or the first vv -eek of April 2011, the Perpetators' parents became aware that the Perpetrator was being accused of sexually assaulting an eleven. year old, girl in an unrelated incident, and that the police were investigating the matter. 13.. At no time did the Perpetrators' parents give any indication to E.G.'s parents or E.G. that the Perpetrator had been accused of sexually assaulting a young girl. 14. In fact, despite knowledge of the allegations of sexual abuse of another young giri. and concerned conununications from E.G.'s mother, the Perpetrator's parents continued to allow E.G. and the Perpetrator to spend tirne together alone and unsupervised in their house. 15. On multiple occasions in the late spring and summer of 2011, the Perpetrator psychologically nianipulated, exploited, groomed, and ultimately sexually assaulted E.G. in his parents' house, as well as other locations. At all times relevant hereto the Perpetrator was sixteen years old and E.G. was twelve years ol.d. Case 1:13-cv-02724-YK Document 1-2 Filed 11/06/13 Page 5 of 13 16. Although the Perpetrator did not intend to cause harm to E.G., his actions resulted in physical injuries, as well as severe emotional distress and psychological injuries. COUNTI L.G. vs. Scott Farrell, Sr. and Kathleen Farrell NEGLIGENCE 17. The allegations set forth in the preceding paragraphs are incorporated by reference as if set forth at length. 18. At all times relevant, Defendants Scott Farrell, Sr. and Kathleen Farrell knew that Defendant Scott Farrell, Jr. was accused of having prior inappropriate sexual contact with young girls, had prior inappropriate sexual contact with young girls, and exhibited behaviors which demonstrated that he should not be left alone with a twelve year old girl. 19. At all times relevant, Defendants Scott Farrell, Sr. and. Kathleen Farrell knew, peg. uitted, encouraged, and facilitated Defendant Scott Farrell, Jr. to have contact with Minor - Plaintiff, including but not limited to, unsupervised contact on their property. 20. As the parents of a sixteen year old boy, Defendants Scott Farrell, Sr. and Kathleen Farrell had a special relationship with Defendant Scott Farrell, Jr., and they were generally responsible for raising him and setting rules and boundaries for his conduct, particularly within their home. 21. Defendants Scott Farrell, Sr. and Kathleen Farrell owed a duty of reasonable care to Minor -Plaintiff as a result of their special relationship with Defendant Scott Farrell, Jr. and as owners and possessors of their home, upon which Minor -Plaintiff was an invitee. Case 1:13-cv-02724-YK Document 1-2 Filed 11/06/13 Page 6 of 13 22. Defendants Scott Farrell, Sr. and Kathleen Farrell were negligent, grossly negligent, and reckless as follows: a. failing to supervise or failing to adequately supervise Defendant Scott Farrell, Jr. with whom they had a special relationship; b. failing to warn the Minor -Plaintiff or her parents of the risk of harm posed by Defendant Scott Farrell, Jr.; c_ permitting the harmful acts of .Defendant Scott Farrell, Jr. to take place and/or continue: failing to make reasonably safe the property which they possessed and/or controlled; e. violation of duties imposed under Pennsylvania law, Section 314A(3) & (4) of the Restatement (Second) of Torts because Defendants Scott Farrell, Sr. and Kathleen Farrell, were possessors of land who held it open to the public, including Minor -Plaintiff, and, as such owed a duty of reasonable protection to Minor -Plaintiff which they violated by failing to make safe the property or provide warnings to Minor -Plaintiff and/or Minor - Plaintiffs parents after having knowledge of the dangerous propensities and tendencies of Defendant Scott Farrell, Jr.; f. violation of duties imposed under Pennsylvania law, Section 311 of the Restatement (Second) of Torts because Defendants Scott Farrell, Sr. and Case 1:13-cv-02724-YK Document 1-2 Filed 11/06/13 Page 7 of 13 g. Kathleen Farrell gave false information to J.G. and S.G. regarding he nature of their minor son's relationship with E.G., and J.G. and S.G. relied on this information and E.G. was harmed as a result of this reliance. violation of duties imposed under Pennsylvania law. Section 3I.5(a) (b) of the Restatement (Second) of Torts; h. violation of duties imposed under Pennsylvania. law, Section 316 of the Restatement (Second) of Torts because Defendants Scott Farrell, Sr. and Kathleen Farrell are the parents of Scott Fan -ell, Jr. and they were under a duty to exercise.reasonable care so as to prevent their minor son from intentionally harming Minor -Plaintiff since they knew or had reason to know that they had the ability to control their minor son, and they knew or should know of the. necessity and opportunity for exercising such control; violation of duties imposed under Pennsylvania law, Section 318 of the Restatement (Second) of Torts because Defendants Scott Farrell, Sr. and Kathleen Farrell were possessors of land who permitted a third person, Defendant Scott Farrell, Jr., to conduct an activity on the land and failed to exercise reasonable care to prevent him from creating an unreasonable risk of bodily harm to the Minor -Plaintiff when these defendants knew or should have known of their ability to control their minor son and knew of the need and opportunity to exercise control over him; Case 1:13-cv-02724-YK Document 1-2 Filed 11/06/13 Page 8 of 13 violation of duties imposed under Pennsylvania law, Section 319 of the Restatement (Second) of Torts because Defendants Scott Farrell, Sr. and Kathleen 'Farrell had charge of Defendant Scott Farrell, Jr. and knew or should have known that he was likely to cause bodily harm to others; and specifically to Minor -Plaintiff, and did not exercise reasonable care to control theirminor son from harming Minor -Plaintiff: violation of duties imposed under Pennsylvania law, Section 320 of the Restatement (Second) of Torts because Defendants Scott Farrell Sr. and Kathleen Farrell voluntarily took custody of Minor -Plaintiff at their residence and subjected her to association with their minor son and knew or had reason to know that they had the ability to control the conduct of their minor son and knew or should have known the necessity and opportunity for exercising such control. violation of duties imposed under Pennsylvania law, Section 324A of the Restatement (-Second) of Torts by having increased the risk of harm of injury to Plaintiffafterhaving assumed the obligation to provide services to all :Plaintiffs to care for and watch Minor-Plaintiffwhile she was at their residence, which was necessary for the protection of Minor -Plaintiff. m, allowing the Minor -Plaintiff to be in the company of Defendant Scott Farrell, Jr., when they knew or should have known and foreseen that based on his propensities towards youn.g girls that he was a danger and threat to the Minor -Plaintiff and was likely to cause her harm; Case 1:13-cv-02724-YK Document 1-2 Filed 11/06/13 Page 9 of 13 n. failing to take any precautions whatsoever to give protection and safety to Minor -Plaintiff from the dangerous propensities of Defendant Scott Farrell, Jr., of which they had notice and knowledge, actual or constructive; o. failing to warn Minor -Plaintiff that activity engaged in by Defendant Scott • Farrell, Jr., would be of a harmful nature to Minor -Plaintiff and have traurnatic effects on her in the future; P, q. permitting Minor -Plaintiff to enter or remain on their property when they knew or should have known that while Minor -Plaintiff remained on the property she was at risk to be banned by Defendant Scott Farrell, Jr.; negligent supervision of the. property; r. violation. of duties imposed under Pennsylvania law, Section 341 and. 341A of the Restatement (Second) of Torts; s. violation of duties imposed under Pennsylvania law, Section 448 of the Restatement (Second) of Torts; t. failing to take reasonable and necessary steps to rescue Minor-Piaintiff after placing her in a perilous position; u. failing to exercise reasonable care to prevent further harm after rendering Minor -Plaintiff in danger of further harm; Case 1:13-cv-02724-YK Document 1-2 Filed 11/06/13 Page 11 of 13 26. Defendant Scott Farrell, Jr., mistakenly concluded the Minor -Plaintiff consented to sexual contact. 27. At all times relevant, Minor -Plaintiff did not consent to sexual contact with Scott Farrell, Jr. 28. A reasonable person in Defendant Scott Farrell, jr.'s position should have realized that Minor -Plaintiff, a twelve year old girl, did not consent to sexual touching. WHEREFORE, Plaintiffs claim of the Defendants, jointly and severally, damages in excess of the mandatory arbitration limits, in addition to other fees, costs, and interest as permitted by the law. Date: Respectfully submitted, By: Benjamin D. Andreozzi PA# 89271 Andreozzi & Associates, P.C. 215 Pine Street, Suite 200 Harrisburg,. PA 17101. p: 717.525.9142 f: 717.525.9143 Counsel for Plaintiffs Case 1:13-cv-02724-YK Document 1-2 Filed 11/06/13 Page 12 of 13 VERIFICATION I, Benjamin D. Andreozzi, Esquire, Attorney for Plaintiffs E.G., 3.0. and S.G., verify that the statements made in the foregoing Amended Complaint are true and correct to the best of my knowledge, information and belief. I understand that false statements herein are made subject to the- penalties of 18 Pa. C.S. §4904, relating to unsworn falsification to authorities. Date: ANDREOZZI & ASSOCIATES, P.C. By: Benjamin D. Amdreozr Attorney ID #89271. 215 Pine St., Ste. 200 Harrisburg, PA 17101 (717) 525-9124 Counsel for Petitioner Case 1:13-cv-02724-YK Document 1-3 lied 11 t/L ge 1 Or 41 The undersigned certifies that this is a true and correct copy of the coverages in effect for policy number 0391-71-698102-70 on April 1, 2011 by Motorists Mutual Insurance Company to Scott Farrell & Kathleen Farrell. I Betty Graham CPCU, CIC, CRM, PLCS, CISR, APi, MS, CPIA, MSC, ACS, CPD Assistant Vice President Personal Lines Underwriting Personal Lines Division. „ The Motorists Insurance k A Group,You know us. EXHIBIT If Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 2 of 41 Declarations POLICY NUMBER 7 1 . 698 102 — 70 EFFECTIVE DATE 01 / 1 5/ 1 1 ISSUE 10 (01/17/11) homeowners FILE COPY PAGE 1 NAMED INSURED SCOTT FARRELL KATHLEEN FARRELL PO BOX 1042 CARLISLE PA 17013-6042 This Declarations voids and supersedes all prior issues, and together with the forms listed in the Schedule of Forms and Endorsements complete the above numbered policy. POLICY PERIOD From 01/15/11 to 01/15/12 This policy period begins and ends al 12:01 A.M. Standard Time at the residence premises as stated in the policy. Insured Residence Premises Description of Dwelling Activity 5 HILLTOP CIRCLE CARLISLE PA 17013 COUnly: CUMBERLAND Year Built 1972 Construction ALUM/PLASTIC Number of Families 001 OVER FRAME Coverage Description and Limits of Liability 411 Section I Coverages A. Dwelling B. Other Structures C. Personal Property D. Loss of Use Section I Deductible Limil $ 216,700 21.670 151,690 43,340 250 Per Occurrence Section II Coverages Limit E. Personal Liability $ 300,000 Each Occurrence F. Medical Payments to Others 2 , coo Each Person Premium Summary (This is not billing) Activity BASIC POLICY PREMIUM 474.00 REVISION OPTIONAL COVERAGE PREMIUM FROM PAGE 2 57.00 TOTAL POLICY PREMIUM 531.00 ACCOUNT NUMBER: AAAG884900 HO 7001 01 95 InsuranceInoMutual 471 East Broad Street, Columbus, Ohio 43215-3961 BACK MOUNTAIN PROF INS 59 1/2 MAIN ST LUZERNE PA 18709 (570)714-3100 Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 3 of 41 POLICY NUMBER 71.698102-70 PAGE 2 Schedule of Forms and Endorsements Additional Premium Number Date Description HO 0003 04-91 HOMEOWNERS 3 SPECIAL FORM HO 0496 04-91 HOME DAY CARE BUSINESS AMENDATORY ENDORSEMENT HO 7002 06-06 POLICY COVERAGE AMENDMENTS AND MUTUAL PROVISIONS HD 7050 09-04 IDENTITY FRAUD EXPENSE COVERAGE HO 7125 01-95 WATERBED COVERAGE HO 7137 08-10 SPECIAL PROVISIONS - PENNSYLVANIA IL 0910 01-81 PENNSYLVANIA NOTICE HO 7140 12-05 PREFERRED HOMEOWNERS ENDORSEMENT HO 7416 04-02 PREMISES ALARM OR FIRE PROTECTION SYSTEM HO 7363 01-95 PERSONAL PROPERTY REPLACEMENT COST HO 7123 01-95 INFLATION PROTECTION ENDORSEMENT DISCOUNT INCLUDED $57.00 Mortgagee or Lienholder Information Mortgagee: 01 WELLS FARGO BANK NA #591 ISAOA PO BOX 100591 FLORENCE SC 29502-0591 Loan No: 4556005 Billed: No Mortgagee: Loan No: Billed: Description of Rating Elements (Appears on agent copy only) Protection Class Premium Group Territory Solution Level 04 13 33 0 Fire Hydrant within 00500 Feet Fire Department within 002 Miles Responding Fire Department CARLISLE This Page Completes Your Declarations Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 4 of 41 POLICY NUMBER Homeowners 3 Special Form HO 0003 (04-91) AGREEMENT We will provide the insurance described in this policy in return for the premium and compliance with all applicable provisions of this policy. DEFINITIONS In this policy, "you" and "your" refer to the "named in- sured" shown in the Declarations and the spouse if a resi- dent of the same household. "We," "us" and "our" refer to the Company providing this insurance. In addition, cer- tain words and phrases are defined as follows: 1. "Bodily injury" means bodily harm, sickness or disease, including required care, loss of services and death that results. 2. "Business" includes trade, profession or occupation. 3. "Insured" means you and residents of your household who are: a. Your relatives; or b. Other persons under the age of 21 and in the care of any person named above. Under Section II, "insured" also means: e. With respect to animals or watercraft to which this policy applies, any person or organization legally re- sponsible for these animals or watercraft which are owned by you or any person included in 3.a. or 3.b. above. A person or organization using or having custody of these animals or watercraft in the course of any "business" or without consent of the owner is not an "insured"; d. With respect to any vehicle to which this policy ap- plies: (1) Persons while engaged in your employ or that of any person included in 3.a. or 3.b. above; or (2) Other persons using the vehicle on an "insured location" with your consent. 4. "insured !'oration" means: a. The "residence premises"; b. The part of other premises, other structures and grounds used by you as a residence and: (1) Which is shown in the Declarations; or (2) Which is acquired by you during the policy period for your use as a residence; c. Any premises used by you in connection with a premises in 4.a. and 4.b. above; d. Any part of a premises: (1) Not owned by an "insured"; and (2) Where an "insured" is temporarily residing; e. Vacant land, other than farm land, owned by or rented to an "insured"; f. Land owned by or rented to an "insured" on which a one or two family dwelling is being built as a re- sidence for an "insured"; Individual or family cemetery plots or burial vaults of an "insured"; or h. Any part of a premises occasionally rented to an "insured" for other than "business" use. 5. "Occurrence" means an accident, including continuous or repeated exposure to substantially the same general harmful conditions, which results, during the policy pe- riod, in: a. "Bodily injury"; or b. "Property damage." 6. "Property damage" means physical injury to, destruction of, or loss of use of tangible property. • 7. "Residence employee" means: a. An employee of an "insured" whose duties are re- lated to the maintenance or use of the "residence premises," including household or domestic services; g. HO 0003 (04-91) Page 1 of 18 or b. One who performs similar duties elsewhere not re- lated to the "business" of an "insured." Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 5 of 41 POLICY NUMBER 8. "Residence premises" means: a. The one family dwelling, other structures, and grounds; or b. That part of any other building; where you reside and which is shown as the "residence premises" in the Declarations. "Residence premises" also means a two family dwelling where you reside in at least one of the family units and which is shown as the "residence premises" in the Declarations. SECTION I - PROPERTY COVERAGES COVERAGE A - Dwelling We cover: 1. The dwelling on the "residence premises" shown in the Declarations, including structures attached to the dwell- ing; and 2. Materials and supplies located on or next to the "resi- dence premises" used to construct, alter or repair the dwelling or other structures on the "residence prem- ises." This coverage does not apply to land, including land on which the dwelling is located. COVERAGE B - Other Structures We cover other structures on the "residence premises" set apart from the dwelling by clear space. This includes structures connected to the dwelling by only a fence, utility line, or similar connection. This coverage does not apply to land, including land on which the other structures are located. We do not cover other structures; 1. Used in whole or in part for "business"; or 2. Rented or held for rental to any person not a tenant of the dwelling, unless used solely as a private garage. The limit of liability for this coverage will not be more than 10% of the limit of liability that applies to Coverage A. Use of this coverage does not reduce the Coverage A limit of liability. COVERAGE C - Personal Property We cover personal property owned or used by an "insured" while it is anywhere in the world. At your request, we will cover personal property owned by: 1. Others while the property is on the part of the "rest dence premises" occupied by an "insured"; 2. A guest or a "residence employee," while the property is in any residence occupied by an "insured." Our limit of liability for personal property usually located at an "insured's" residence, other than the "residence prem- ises," is 10% of the limit of liability for Coverage C, or $1000, whichever is greater. Personal property in a newly acquired principal residence is not subject to this limitation for the 30 days from the time you begin to move the pro- perty there. • Special Limits of Liability. These limits do not increase the Coverage C limit of liability. The special limit for each numbered category below is the total limit for each loss for all property in that category. 1. $200 on money, bank notes, bullion, gold other than goldware, silver other than silverware, platinum, coins and medals. 2. $1000 on securities, accounts, deeds, evidences of debt, letters of credit, notes other than bank notes, manu- scripts, personal records, passports, tickets and stamps. This dollar limit applies to these categories regardless of the medium (such as paper or computer software) on which the material exists. This limit includes the cost to research, replace or re- store the information from the lost or damaged material. 3. $1000 on watercraft, including their trailers, furnishings, equipment and outboard engines or motors. 4. $1000 on trailers not used with watercraft. 5. $1000 for loss by theft of jewelry, watches, furs, pre- cious and semi-precious stones. 6. $2000 for loss by theft of firearms. 7. $2500 for loss by theft of silverware, silver-plated ware, goldware. gold-plated ware and pewterware. This in- cludes flatware, hollowware, tea sets, trays and trophies made of or including silver, gold or pewter. 8. $2500 on property, on the "residence premises," used at any time or in any manner for any "business" pur- pose. HO 0003 (04-91) Page 2 of 18 Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13. Page 6 of 41 POLICY NUMBER 9. $250 on property, away from the "residence premises," used at any time or in any manner for any "business" purpose. However, this limit does not apply to loss to adaptable electronic apparatus as described in Special Limits 10. and 11. below. 10. $1000 for loss to electronic apparatus, while in or upon a motor vehicle or other motorized land conveyance, if the electronic apparatus is equipped to be operated by power from the electrical system of the vehicle or con- veyance while retaining its capability of being operated by other sources of power. Electronic apparatus in- cludes: a. Accessories or antennas; or b. Tapes, wires, records, discs or other media; for use with any electronic apparatus. 11. 81000 for loss to electronic apparatus, while not in or upon a motor vehicle or other motorized land convey- ance, if the electronic apparatus: a. Is equipped to be operated by power from the elec- trical system of the vehicle or conveyance while re- taining its capability of being operated by other sources of power; b. Is away from the "residence premises"; and c. Is used at any time or in any manner for any "bu- siness" purpose. Electronic apparatus includes: a. Accessories or antennas; or b. Tapes, wires, records, discs or other media; for use with any electronic apparatus. Property Not Covered. We do not cover: 1. Articles separately described and specifically insured in this or other insurance; 2. Animals, birds or fish; 3. Motor vehicles or all other motorized land conveyances. This includes: a. Their equipment and accessories; or b. Electronic apparatus that is designed to be operated solely by use of the power from the electrical system of motor vehicles or all other motorized land con- veyances. Electronic apparatus includes: (1) Accessories or antennas; or (2) Tapes, wires, records, discs or other media; for use with any electronic apparatus. The exclusion of property described in 3.a. and 3.b. above applies only while the property is in or upon the vehicle or conveyance. We do cover vehicles or conveyances not subject to motor vehicle registration which are: a. Used to service an "insured's" residence; or b. Designed for assisting the handicapped; 4. Aircraft and parts. Aircraft means any contrivance used or designed for flight, except model or hobby aircraft not used or designed to carry people or cargo; 5. Property of roomers, boarders and other tenants, except property of roomers and boarders related to an "in- sured"; 6. Property in an apartment regularly rented or held for rental to others by an "insured," except as provided in Additional Coverages 10; 7. Property rented or held for rental to others off the "re- sidence premises"; 8. "Business" data, including such data stored in: a. Books of account, drawings or other paper records; or b. Electronic data processing tapes, wires, records, discs or other software media. However, we do cover the cost of blank recording or storage media, and of pre-recorded computer programs available on the retail market; or 9. Credit cards or fund transfer cards except as provided in Additional Coverages 6. COVERAGE 0 - Loss of Use The limit of liability for Coverage D is the total limit for all the coverages that follow. 1. if a loss covered under this Section makes that part of the "residence premises" where you reside not fit to live in, we cover, at your choice, either of the following. However, if the "residence premises" is not your princi- pal place of residence, we will not provide the option under paragraph b. below. a, Additional Living Expense, meaning any necessary increase in living expenses incurred by you so that your household can maintain its normal standard of living; or b. Fair Rental Value, meaning the fair rental value of that part of the "residence premises" where you re- side less any expenses that do not continue while the premises is not fit to live in. HO 0003 (04-91) Page 3 of 18 Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 7 of 41 POLICY NUMBER Payment under a. or b. will be for the shortest time re- quired to repair or replace the damage or, if you per- manently relocate, the shortest time required for your - household to settle elsewhere. 2, If a loss covered under this Section makes that part of the "residence premises" rented to others or held for rental by you not fit to live in, we cover the: Fair Rental Value, meaning the fair rental value of that part of the "residence premises" rented to others or held for rental by you less any ex- penses that do not continue while the premises is not fit to live in. Payment will be for the shortest time required to repair or replace that part of the premises rented or held tor rental. 3. If a civil authority prohibits you from use of the "resi- dence premises" as a result of direct damage to neigh- boring premises by a Peril Insured Against in this policy, we cover the Additional Living Expense and Fair Rental Value loss as provided under 1. and 2. above for no more than two weeks. The periods of time under 1., 2. and 3. above are not limited by expiration of this policy. We do not cover loss or expense due to cancellation of a lease or agreement. ADDITIONAL COVERGES 1. Debris Removal. We will pay your reasonable expense for the removal of: a. Debris of covered property if a Peril Insured Against that applies to the damaged property causes the loss; or b. Ash, dust or particles from a volcanic eruption that has caused direct loss to a building or property contained in a building. This expense is included in the limit of liability that ap- plies to the damaged property. If the amount to be paid for the actual damage to the property plus the debris removal expense is more than the limit of liability for the damaged property, an additional 5% of that limit of li- ability is available for debris removal expense. We will also pay your reasonable expense, up to $500, for the removal from the "residence premises" of: a. Your tree(s) felled by the peril of Windstorm or Hail; or b. Your tree(s) felled by the peril of Weight of Ice, Snow or Sleet; or c. A neighbor's tree(s) felled by a Peril Insured Against under Coverage C; provided the tree(s) damages a covered structure. The $500 limit is the most we will pay in any one loss re- gardless of the number of fallen trees. 2. Reasonable Repairs. In the event that covered property is damaged by an applicable Peril Insured Against, we will pay the reasonable cost incurred by you for neces- sary measures taken solely to protect against further damage. If the measures taken involve repair to other damaged property, we will pay for those measures only it that property is covered under this policy and the damage to that property is caused by an applicable Peril Insured Against. This coverage: a, Does not increase the limit of liabili t applies to the covered property; b. Does not relieve you of your dunes, in case of a loss to covered property, as set forth in SECTION I • CONDITION 2.d. 3. Trees, Shrubs and Other Plants. We cover trees, shrubs, plants or lawns, on the "residence premises." for loss caused by the following Perils Insured Against: Fire or lightning, Explosion, Riot or civil commotion, Aircraft, Vehicles not owned or operated by a resident of the "residence premises," Vandalism or malicious mischief or Theft. We will pay up to 5% of the limit of liability that applies to the dwelling, for all trees, shrubs, plants or lawns. No more than $500 of this limit will be available for any one tree, shrub or plant. We do not cover property grown for "business" purposes. This coverage is additional insurance. 4. Fire Department Service Charge. We will pay up to $500 for your liability assumed by contract or agreement for fire department charges incurred when the fire de- partment is called to save or protect covered property from a Peril Insured Against. We do not cover fire de- partment service charges lithe property is located within the limits of the city, municipality or protection district furnishing the fire department response. This coverage is additional insurance. No deductible applies to this coverage. HO 0003 (04-91) Page 4 of 18 ty tha Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 8 of 41 POLICY NUMBER 5. Property Removed. We insure covered property against direct loss from any cause while being removed from a premises endangered by a Peril Insured Against and for no more than 30 days while removed. This coverage does not change the limit of liability that applies to the property being removed, 6. Credit Card, Fund Transfer Card, Forgery and Counter- feit Money. We will pay up to $500 for: a. The legal obligation of an "insured" to pay because of the theft or unauthorized use of credit cards is- sued 10 or registered in an "insured's" name: b. Loss resulting from theft or unauthorized use of a fund transfer card used for deposit, withdrawal or transfer of funds, issued to or registered in an "insured's" name; c. Loss to an "insured" caused by forgery or alteration of any check or negotiable instrument: and d. Loss to an "insured" through acceptance in good faith of counterfeit United States or Canadian paper currency. We do not cover use of a credit card or fund transfer card: a. By a resident of your household; b. By a person who has been entrusted with either type of card; or c. If an "insured" has not complied with al) terms and conditions under which the cards are issued. All loss resulting from a series of acts committed by any one person or in which any one person is concerned or implicated is considered to be one loss. We do not cover loss arising out of 'business" use or dishonesty of an "insured." This coverage is additional insurance. No deductible applies to this coverage. Defense: a. We may investigate and settle any claim or suit that we decide is appropriate. Our duty to defend a claim or suit ends when the amount we pay for the loss equals our limit of liability. b. If a suit is brought against an "insured" for liability under the Credit Card or Fund Transfer Card cover- age, we will provide a defense at our expense by counsel of our choice. HO 0 c. We have the option to defend at our expense an "insured" or an "insured's" bank against any suit for the enforcement of payment under the Forgery cov- erage. 7. Loss Assessment. We will pay up to $1000 for your share of loss assessment charged during the policy pe- riod against you by a corporation or association of pro- perty owners, when the assessment is made as a result of direct loss to the property, owned by all members collectively, caused by a Peril Insured Against under COVERAGE A - DWELLING, other than earthquake or land shock waves or tremors before, during or after a volcanic eruption. This coverage applies only to loss assessments charged against you as owner or tenant of the "residence premises." We do not cover loss assessment charged against you or a corporation or association of property owners by any governmental body. The limit of $1000 is the most we will pay with respect to any one loss, regardless of the number of assess- ments. Condition 1. Policy Period, under SECTIONS I AND II - CONDITIONS, does not apply to this coverage. 8. Collapse. We insure for direct physical loss to covered property involving collapse of a building or any part of a building caused only by one or more of the following: a. Perils Insured Against in COVERAGE C - PERSONAL PROPERTY. These perils apply to covered buildings and personal property for loss insured by this addi- tional coverage: b. Hidden decay; c. Hidden insect or vermin damage; d. Weight of contents, equipment, animals or people; e. Weight of rain which collects on a roof; or f. Use of defective material or methods in construction, remodeling or renovation if the collapse occurs dur- ing the course of the construction, remodeling or renovation. Loss to an awning, fence, patio, pavement, swimming pool, underground pipe, flue, drain, cesspool, septic tank, foundation, retaining wall, bulkhead, pier, ;wharf or dock is not included under items b., c., d., e., and f. unless the loss is a direct result of the collapse of a building. 04-91) Page 5 of 18 Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 9 of 41 POLICY NUMBER Collapse does not include settling, cracking, shrinking, bulging or expansion. This coverage does not increase the limit of liability ap- plying to the damaged covered property. 9. 'Glass or Safety Glazing Material. We cover: a. The breakage of glass or safety glazing material which is part of a covered building, storm door or storm window; and b. Damage to covered property by glass or safety glazing material which is part of a building, storm door or storm window. This coverage does not include loss on the "residence premises" if the dwelling has been vacant for more than 30 consecutive days immediately before the loss. A dwelling being constructed is not considered vacant. Loss for damage to glass will be settled on the basis of replacement with safety glazing materials when re- quired by ordinance or law. This coverage does not increase the limit of liability that applies to the damaged property. 10. Landlord's Furnishings. We will pay up to $2500 for your appliances, carpeting and other household fur- nishings, in an apartment on the "residence premises" regularly rented or held for rental to others by an "in- sured," for loss caused only by the following Perils in- sured Against: a. Fire or lightning. b. Windstorm or hail. This peril does not include loss to the property contained in a building caused by rain, snow, sleet, sand or dust unless the direct force of wind or hail damages the building causing an opening in a roof or wall and the rain, snow, sleet, sand or dust enters through this opening. This peril includes loss to watercraft and their trail- ers, furnishing, equipment, and outboard engines or motors, only while inside a fully enclosed building. c. Explosion. d. Riot or civil commotion. e. Aircraft, including self-propelled missiles and space- craft. HO 0003 (04-91) Page 6 of 18 f. Vehicles. g. Smoke, meaning sudden and accidental damage from smoke. This peril does notinclude loss caused by smoke from agricultural smuding:or jndustrial operations. h. Vandalism or malicious mischief. i. Falling objects. This peril does not include loss to property contained in a building unless the roof or an outside wall of the building is first damaged by a falling object. Damage to the falling object itself is not included. j. Weight of ice, snow or sleet which causes damage to property contained in a building. k. Accidental discharge or overflow of water or steam from within a plumbing, heating, air conditioning or automatic fire protective sprinkler system or from within a household appliance. This peril does not include loss; (1) To the system or appliance from which the water or steam escaped; (2) Caused by or resulting from freezing except as provided in the peril of freezing below; or (3) On the "residence premises" caused by acci- dental discharge or overflow which occurs off the "residence premises." In this peril, a plumbing system does not include a sump, sump pump or related equipment. Sudden and accidental tearing apart, cracking, burning or bulging of a steam or hot water heating system, an air conditioning.. or automatic fire protec- tive sprinkler system, or an appliance for heating water. We do not cover loss caused by or resulting from freezing under this peril. m. Freezing of a plumbing, heating, air conditioning or automatic fire protective sprinkler system or of a household appliance. This peril does not include loss on the "residence premises" while the dwelling is unoccupied, unless you have used reasonable care to: (1) Maintain heat in the building; or (2) Shut off the water supply and drain the system and appliances of water. Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 10 of 41 POLICY NUMBER n. Sudden and accidental damage from artificially generated electrical current. This peril does not include loss to a tube, transistor or similar electronic component. o. Volcanic eruption other than loss caused by earth- quake, land shock waves or tremors. The $2500 limit is the most we will pay in any one loss regardless of the number of appliances, carpeting or other household furnishings involved in the loss. SECTION 1 - PERILS INSURED AGAINST COVERAGE A - DWELLING and COVERAGE B - OTHER STRUCTURES We insure against risk of direct loss to property described in Coverages A and B only if that loss is a physical loss to property. We do not insure, however, for loss: 1. Involving collapse, other than as provided in Additional Coverage 8; 2. Caused by: a. Freezing of a plumbing, heating, air conditioning or automatic fire protective sprinkler system or of a household appliance, or by discharge, leakage or overflow from within the system or appliance caused by freezing. This exclusion applies only while the dwelling is vacant, unoccupied or being constructed, unless you have used reasonable care to: (1) Maintain heat in the building; or (2) Shut off the water supply and drain the system and appliances of water; b. Freezing, thawing, pressure or weight of water or ice, whether driven by wind or not, to a: (1) Fence, pavement, patio or swimming pool; (2) Foundation, retaining wall, or bulkhead; or (3) Pier, wharf or dock; c. Theft in or to a dwelling under construction, or of materials and supplies for use in the construction until the dwelling is finished and occupied; d. Vandalism and malicious mischief if the dwelling has been vacant for more than 30 consecutive days im- mediately before the loss. A dwelling being con- structed is not considered vacant; e. Any of the following: (1) Wear and tear, marring, deterioration; (2) inherent vice, latent defect, mechanical break- down; (3) Smog, rust or other corrosion, mold, wet or dry rot; (4) Smoke from agricultural smudging or industrial operations; (5) Discharge, dispersal, seepage, migration, release or escape of pollutants unless the discharge, dispersal, seepage, migration, release or escape is itself caused by a Peril Insured Against under Coverage C of this policy. Pollutants means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned or reclaimed; (5) Settling, shrinking, bulging or expansion, includ- ing resultant cracking, of pavements, patios, foundations, walls, floors, roofs or ceilings; (7) Birds, vermin, rodents, or insects; or (8) Animals owned or kept by an "insured." If any of these cause water damage not other- wise excluded, from a plumbing, heating, air conditioning or automatic fire protective sprinkler system or household appliance, we cover loss caused by the water including the cost of tearing out and replacing any part of a building neces- sary to repair the system or appliance. We do not cover loss to the system or appliance from which this water escaped. Excluded under Section I • Exclusions. Under items 1. and 2., any ensuing loss to property de- scribed in Coverage A and B not excluded or excepted in this policy is covered. COVERAGE C - PERSONAL PROPERTY We insure for direct physical loss to the property described in Coverage C caused by a peril listed below unless the loss is excluded in SECTION 1 - EXCLUSIONS. HO 0003 (04-91) Page 7 of 18 Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 11 of 41 POLICY NUMBER 1. Fire or lightning. 2. Windstorm or hail. This peril does not include loss to the inside of a build- ing or the property contained in a building caused by rain, .show, sleet, sand or dust unless the direct force of wind or hail damages the building causing an opening in a root or wall and the rain, snow, sleet, sand or dust enters through this opening. This peril includes loss to watercraft and their trailers, furnishings, equipment, and outboard engines or motors, only while inside a fully enclosed building. 3. Explosion. 4. Riot or civil commotion. 5. Aircraft, including self-propelled missiles and spacecraft. 5. Vehicles. 7. Smoke, meaning sudden and accidental damage from smoke. This peril does not include loss caused by smoke from agricultural smudging or industrial operations. 8. Vandalism or malicious mischief. 9. Theft, including attempted theft and loss of property from a known place when it is likely that the property has been stolen. This peril does not include loss caused by theft; a. Committed by an "insured"; b. in or to a dwelling under construction, or of mate- rials and supplies for use in the construction until the dwelling is finished and occupied; or c. From that part of a "residence premises" rented by an "insured" to other than an "insured." This peril does not include loss caused by theft that occurs off the "residence premises" of: a. Property while at any other residence owned by, rented to, or occupied by an "insured." except while an "insured" is temporarily living there. Property of a student who is an "insured" is covered while at a residence away from home if the student has been there at any time during the 45 days imme- diately before the loss; b. Watercraft, and their furnishings, equipment and outboard engines or motors; or c. Trailers and campers. 10. Falling objects. This peril does not include loss to ptoperty contained in a building unless the roof or an outside wall of the building is first damaged by a falling object. Damage to the falling object itself is not included: 11. Weight of ice, snow or sleet which causes damage to property contained in a building. 12. Accidental discharge or overflow of water or steam from within a plumbing, heating, air conditioning or au- tomatic fire protective sprinkler system or from within a household appliance. This peril does not include loss: a. To the system or appliance from which the water or steam escaped; b. Caused by or resulting from freezing except as pro- vided in the peril of freezing below; or c. On the "residence premises" caused by accidental discharge or overflow which occurs off the "resi- dence premises." In this peril, a plumbing system does not include a sump, sump pump or related equipment. 13. Sudden and accidental tearing apart, cracking, burning or bulging of a steam or hot water heating system, an air conditioning or automatic fire protective sprinkler system, or an appliance for heating water. We Co not cover loss caused by or resulting from freezing under this peril. 14. Freezing of a plumbing, heating, air conditioning or au- tomatic fire protective sprinkler system or of a house- hold appliance. This peril does not include loss on the "residence premises" while the dwelling is unoccupied, unless you have used reasonable care to: a. Maintain heat in the building; or b. Shut off the water supply and drain the system and appliances of water. 15. Sudden and accidental damage from artificatly gener ated electrical current. This peril does not include loss to a tube, transistor or similar electronic component. 16. Volcanic eruption other than loss caused try earthquake, land shock waves or tremors. HO 0003 (04-91) Page 8 of 18 Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 12 of 41 POLICY NUMBER SECTION I - EXCLUSIONS 1. We do not insure for loss caused directly or indirectly by any of the following. Such loss is excluded;,regard- less of any other cause or event contributing concur- rently or in any sequence to the loss. a. Ordinance or Law, meaning enforcement of any or- dinance or law regulating the construction, repair, or demolition of a building or other structure, unless specifically provided under this policy. b. Earth Movement, meaning earthquake including land shock waves or tremors before, during or after a volcanic eruption; landslide; mine subsidence; mud - flow; earth sinking, rising or shifting; unless direct loss by: (1) Fire; (2) Explosion; or (3) Breakage of glass or safety glazing material which is part of a building, storm door or storm window; ensues and then we will pay only for the ensuing loss. This exclusion does not apply to loss by theft. c. Water Damage, meaning: -(1) Flood, surface water, waves, tidal water, overflow of a body of water, or spray from any of these, whether or not driven by wind; (2) Water which backs up through sewers or drains or which overflows from a sump; or (3) Water below the surface of the ground, including water which exerts pressure on or seeps or leaks through a building, sidewalk, driveway, founda- tion, swimming pool or other structure. Direct loss by fire, explosion or theft resulting from water damage is covered. d. Power Failure, meaning the failure of power or other utility service if the failure takes place off the "resi- dence premises." But, if a Peril Insured Against ensues on the "residence premises," we will pay only for that ensuing loss. e. Neglect, meaning neglect of the "insured" to use all reasonable means to save and preserve property at and after the time of a loss. f. War, including the following and any consequence of any of the following: (1) Undeclared war, civil war, insurrection, rebellion or revolution; - (2) Warlike act by a military force or military per- sonnel; or (3) Destruction, seizure or use for a military pur- pose. 0 - Discharge of a nuclear weapon will be deemed a warlike act even if accidental. Nuclear Hazard, to the extent set forth in the Nu- clear Hazard Clause of SECTION I - CONDITIONS. h. Intentional Loss, meaning any loss arising out of any act committed: (1) By or at the direction of an "insured"; and (2) With the intent to cause a loss. 2. We do not insure for loss to property described in Coverages A and B caused by any of the following. However, any ensuing loss to property described in Coverages A and B not excluded or excepted in this policy is covered. a. Weather conditons. However, this exclusion only applies if weather conditions contribute in any way with a cause or event excluded in paragraph 1. above to produce the loss: b. Acts or decisions, including the failure to act or de- • cide, of any person, group, organization or govern- mental body. c. Faulty, inadequate or detective: (1) Planning, zoning, development, surveying, siting; (2) Design, specification, workmanship, repair, con- struction, renovation, remodeling, grading, com- paction: (3) Material used in repair, construction, renovation or remodeling; or (4) Maintenance; of part or all of any property whether on or off the "residence premises." HO 0003 (04-91) Page 9 of 18 Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 13 of 41 POUCY NUMBER SECTION 1 - CONDITIONS 1. Insurable Interest and Limit o1 Liability. Even if more than one person has an insurable interest in the property covered, we wit not be liable in any one loss: a. To the "insured" for more than the amount of the "insured's" interest at the time of loss; or b. For more than the applicable limit of liability. 2. Your Duties After Loss. In case of a loss to covered property, you must see that the following are done: a. Give prompt notice to us or our agent; b. Notify the police in case of loss by theft; c. Notify the credit card or fund transfer card company in case of loss under Credit Card or Fund Transfer Card coverage; d. Protect the property from further damage. If repairs to the property are required, you must: (1) Make reasonable and necessary repairs to protect the properly; and (2) Keep an accurate record of repair expenses; e. Prepare an inventory of damaged personal property showing the quantity, description, actual cash value and amount of loss. Attach all bills, receipts and related documents that justify the figures in the in- ventory; I. As often as we reasonably require: (1) Show the damaged property; (2) Provide us with records and documents we re- quest and permit us to make copies; and (3) Submit to examination under oath, while not in the presence of any other "insured," and sign the same; g. Send to us, within 60 days after our request, your signed, sworn proof of loss which sets forth, to the best of your knowledge and belief: (1) The time and cause of loss; (2) The interest o1 the "insured" and all others in the property involved and all liens on the property; (3) Other insurance which may cover the loss; (4) Changes in title or occupancy of the property during the term of the policy; (5) Specification of damaged buildings 'and detailed repair estimates; (6) The inventory of damaged personal property de- scribed in 2.e. above; (7) Receipts for additional living expenses incurred and records that support the fair rental value loss; and (8) Evidence or affidavit that supports a claim under the Credit Card, Fund Transfer Card, Forgery and Counterfeit Money coverage, stating the amount and cause of loss. 3. Loss Settlement. Covered property losses are settled as follows: a. Property of the following type: (1) Personal property; (2) Awnings, carpeting, household appliances, out- door antennas and outdoor equipment, whether or not attached to buildings; and (3) Structures that are not buildings; at actual cash value at the time of loss but not more than the amount required to repair or replace. b. Buildings under Coverage A or B at replacement cost without deduction for depreciation, subject to the following: (1) If, at the time of loss; the amount of insurance in this policy on the damaged building is 80% or more of the full replacement cost of the building immediately before the loss, we will pay the cost to repair or replace, after application of deductible and without deduction for depreci- ation, but not more than the least of the fol- lowing amounts: (a) The limit of liability under this policy that applies to the building; (b) The replacement cost of that part of the building damaged for like construction and use on the same premises; or (C) The necessary amount actually spent to re- pair or replace the damaged building. HO 0003 (04-91) Page 10 of 18 Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 14 of 41 POLICY NUMBER (2) If, at the time of loss, the amount of insurance in this policy on the damaged building is less than 80% of the full replacement cost of the building immediately before the loss, we will pay the greater of the following amounts, but...npt more than the limit of liability under this policy that applies to the building: (a) The actual cash value of that part of the building damaged; or (b) That proportion of the cost to repair or re- place, after application of deductible and without deduction for depreciation, that part of the building damaged, which the total amount of insurance in this policy on the damaged building bears to 800Jo of the re- placement cost of the building. (3) To determine the amount of insurance required to equal 80% of the full replacement cost of the building immediately before the loss, do not in- clude the value of: (a) Excavations, foundations, piers or any sup- ports which are below the undersurface of the lowest basement floor; (b) Those supports in (a) above which are below the surface of the ground inside the founda- tion walls, if there is no basement; and (c) Underground flues, pipes, wiring and drains. (4) We will pay no more than the actual cash value of the damage until actual repair or replacement is complete. Once actual repair or replacement is complete, we will settle the loss according to the provisions of b.(1) and b.(2) above. However, if the cost to repair or replace the damage is both: (a) Less than 5% of the amount of insurance in this policy on the building; and (b) Less than 82500; We will settle the loss according to the pro- visions of b.(1) and b.(2) above whether or not actual repair or replacement is complete. (5) You may disregard the replacement cost loss settlement provisions and make claim under this policy for loss or damage to buildings on an actual cash value basis. You may then make claim within 180 days after loss for any additional liability according to the provisions of this Condition 3. Loss Settlement. 4. Loss to a Pair or Set. In case of loss to a pair or set we may elect to: a. Repair or replace any part to restore the pair or set to its value before the loss; or b. Pay the difference between actual cash value of the property before and after the loss. 5. Glass Replacement. Loss for damage to glass caused by a Peril Insured Against will be settled on the basis of replacement with safety glazing materials when re- quired by ordinance or law. 6. Appraisal. If you and we fail to agree on the amount of loss, either may demand an appraisal of the loss. In this event, each party will choose a competent ap- praiser within 20 days after receiving a written request from the other. The two appraisers will choose an umpire. If they cannot agree upon an umpire within 15 days, you or we may request that the choice be made by a judge of a court of record in the state where the "residence premises" is located. The appraisers will separately set the amount of doss. If the appraisers submit a written report of an agreement to us, the amount agreed upon will be the amount of loss. If they fail to agree, they will submit their differences to the umpire. A decision agreed to by any two will set the amount of loss. Each party will: a. Pay its own appraiser; and b. Bear the other expenses of the appraisal and umpire equally. 7. Other Insurance. If a loss covered by this policy is also covered by other insurance, we will pay only the pro- portion of the loss that the limit of liability that applies under this policy bears to the total amount of insurance covering the loss. 8. Suit Against Us. No action can be brought unless the policy provisions have been complied with and the action is started within one year after the date of loss. 9. Our Option. If we give you written notice within 30 days after we receive your signed, sworn proof of loss, we may repair or replace any part of the damaged property with like property: HO 0003 (04-91) Page 11 of 18 Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 15 of 41 POLICY NUMBER 10. Loss Payment. We will adjust all losses with you. We will pay you unless some other person is named in the policy or is legally entitled to receive payment. Loss will be payable 60 days after we receive your proof of loss and: a. Reach an agreement with you; b. There is an entry of a final judgment; or c. There is a filing of an appraisal award with us. 11. Abandonment of Property. We need not accept any property abandoned by an "insured." 12. Mortgage Clause. The word "mortgagee" includes trustee. If a mortgagee is named in this policy, any loss payable under Coverage A or B will be paid to the mortgagee and you, as interests appear. If more than one mort- gagee is named, the order of payment will be the same as the order of precedence of the mortgages. If we deny your claim, that denial will not apply to a valid claim of the mortgagee, if the mortgagee: a. Notifies us of any change in ownership, occupancy or substantial change in risk of which the mortgagee is aware; b. Pays any premium due under this policy on demand if you have neglected to pay the premium; and c. Submits a signed, sworn statement of loss within 60 days after receiving notice from us of your failure to do so. Policy conditions relating to Appraisal, Suit Against Us and Loss Payment apply to the mortgagee. If we decide to cancel or not to renew this policy, the mortgagee will be notified at least 10 days before the date cancellation or nonrenewal takes effect. If we pay the mortgagee for any loss and deny payment to you: a. We are subrogated to all the rights of the mortgagee granted under the mortgage on the property; or b. At our option, we may pay to the mortgagee the whole principal on the mortgage plus any accrued interest. In this event, we will receive a full assign- ment and transfer of the mortgage and all securities held as collateral to the mortgage debt. Subrogation will not impair the right of ttfe triortgagee to recover the full amount of the mortgagee's claim. 13. No Benefit to Bailee. We will not recognize any as- signment or grant any coverage that benefits a person or organization holding, storing or moving property for a fee regardless of any other provision of this policy, 14. Nuclear Hazard Clause. a. "Nuclear Hazard" means any nuclear reaction, radi- ation, or radioactive contamination, all whether con- trolled or uncontrolled or however caused, or any consequence of any of these. b. Loss caused by the nuclear hazard will not be con- sidered loss caused by fire, explosion, or smoke, whether these perils are specifically named in or otherwise included within the Perils Insured Against in Section I. c. This policy does not apply under Section i to loss caused directly or indirectly by nuclear hazard, except that direct loss by fire resulting from the nuclear hazard is covered. 15. Recovered Property. If you or we recover any property for which we have made payment under this policy, you or we will notify the other of the recovery. At your option, the property will be returned to or retained by you or it will become our property. If the recovered property is returned to or retained by you, the loss payment will be adjusted based on the amount you re- ceived for the recovered property. 16. Volcanic Eruption Period. One or more volcanic eruptions that occur within a 72 -hour period will be considered as one volcanic eruption. SECTION II - LIABILITY COVERAGES COVERAGE E - Personal Liability If a claim is made or a suit is brought against an "insured" for damages because of "bodily injury" or "property dam- age" caused by an "occurrence" to which this coverage applies, we will: 1. Pay up to our limit of liability for the damages for which the "insured" is legally liable. Damages include pre- judgment interest awarded against the "insured"; and HO 0003 (04-91) Page 12 of 18 Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 16 of 41 POLICY NUMBER 2. Provide a defense at our expense by counsel of our choice, even if the suit is groundless, false or fraudulent. We may investigate and settle any claim or suit that we decide is appropriate. Our duty to settle or defend ends when the amount we pay for damages resulting from the "occurrence" equals our limit of liability. COVERAGE F - Medical Payments To Others We will pay the necessary medical expenses that are in- curred or medically ascertained within three years from the date of an accident causing "bodily injury." Medical ex- penses means reasonable charges for medical, surgical, x- ray, dental, ambulance, hospital, professional nursing, prosthetic devices and funeral services. This coverage does not apply to you or regular residents of your household ex- cept "residence employees." As to others, this coverage applies only: 1. To a person on the "insured location" with the permis- sion of an "insured"; or 2. To a person off the "insured location," if the "bodily injury": a. Arises out of a condition on the "insured location" or the ways immediately adjoining; b. Is caused by the activities of an "insured"; c. Is caused by a "residence employee" in the course of the 'residence employee's" employment by an "insured"; or d. Is caused by an animal owned by or in the care of an "insured." SECTION H - EXCLUSIONS 1. Coverage E - Personal Liability and Coverage F - Med- ical Payments to Others do not apply to "bodily injury" or "property damage": a. Which is expected or intended by the "insured"; b. Arising out of or in connection with a "business" engaged in by an "insured." This exclusion applies but is not limited to an act or omission, regardless of its nature cr circumstance, involving a service or duty rendered, promised, owed, or implied to be provided because of the nature of the "business"; c. Arising out of the rental or holding for rental of any premises by an "insured." This exclusion does not apply to the rental or holding for rental of an "in- sured location": (1) On an occasional basis if used only as a resi- dence: (2) In part for use only as a residence, unless a single family unit is intended for use by the oc- cupying family to lodge more than two roomers or boarders; or (3) In part, as an office, studio or private garage; d. Arising out of the rendering of or failure to render professional services; e. Arising out of a premises: (1) Owned by an "insured"; (2) Rented to an "insured"; or (3) Rented to others by an "insured"; HO 0003 (04-91) Page 13 of 18 that is not an "insured location"; 1. Arising out of: (1) The ownership, maintenance, use, loading or unloading of motor vehicles or all other motor- ized land conveyances, including trailers, owned or operated by or rented or loaned to an "in- sured"; (2) The entrustment by an "insured" of a motor vehicle or any other motorized land conveyance to any person; or (3) Vicarious liability, whether or not statutorily im- posed, for the actions of a child or minor using a conveyance excluded in paragraph (1) or (2) above. This exclusion does not apply to: (1) A trailer not towed by or carried on a motorized land conveyance. (2) A motorized conveyance designed for recreational use off public roads, not subject to motor vehicle registration and: (a) Not owned by an "insured"; or (b) Owned by an "insured" and on an "insured location"; (3) A motorized golf cart when used to play golf on a golf course; (4) A vehicle or conveyance not subject to motor vehicle registration which is: Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 17 of 41 POUCY NUMBER g. (a) Used to service an "insured's" residence; (b) Designed for assisting the handicapped; or (c) In dead storage on an "insured location"; Arising out of: (1) The ownership;' maintenance, use, loading or unloading of an excluded -watercraft described below; (2) The entrustment by an "insured" of an excluded watercraft described below to any person; or (3) Vicarious liability, whether or not statutorily im- posed, for the actions of a child or minor using an excluded watercraft described below. Excluded watercraft are those that are principally designed to be propelled by engine power or electric motor, or are sailing vessels, whether owned by or rented to an "insured." This exclusion does not apply to watercraft: (1) that are not sailing vessels and are powered by: (a) Inboard or inboard-outdrive .engine or motor power of 50 horsepower or less not owned by an "insured"; (b) Inboard or inboard-outdrive engine or motor power of more than 5 horsepower not owned by or rented to an "insured"; (c) One or more outboard engines or motors with 25 total horsepower or less; (d) One or more outboard engines or motors with more than 25 total horsepower if the outboard engine or motor is not owned by an "insured"; (e) Outboard engines or motors of more than 25 total horsepower owned by an "insured" if: (i) You acquire them prior to the policy pe- riod; and (a) You declare them at policy inception; or (b) Your intention to Insure is reported to us in writing within 45 days after you acquire the outboard engines or motors. (ii) You acquire them during the policy pe- riod. This coverage applies for the policy period. HO 0003 (04-91) Page 14 of 18 (2) That are sailing vessels, with or without auxiliary power: (a) Less than 25 feet in overall length; (b) 26 feet or more in overall length, .not owned by or rented to an "insured." (3) That are stored; h. Arising out of: (1) The ownership, maintenance, use, loading or unloading of an aircraft; (2) The entrustment by an "insured" of an aircraft to any person; or (3) Vicarious liability, whether or not statutorily im- posed, for the action of a child or minor using an aircraft. An aircraft means any contrivance used or designed for flight, except model or hobby aircraft not used or designed to carry people or cargo; i. Caused directly or indirectly by war, including the following and any consequences of any of the fol- lowing: (1) Undeclared war, civil war, insurrection„ rebellion or revolution; (2) Warlike act by a military force or military per- sonnel; or (3) Destruction, seizure or use for a military pur- pose. Discharge of a nuclear weapon will be deemed a warlike act even if accidental; j. Which arises out of the transmission of a commu- nicable disease by an "insured"; k. Arising out of sexual molestation, corporal punish- ment or physical or mental abuse; or I. Arising out of the use, sale, manufacture, delivery, transfer or possession by any person of a Controlled Substance(s) as defined by the Federal Food and Drug Law at 21 U.S.C.A. Sections 811 and 812. Controlled Substances include but are not limited to cocaine, LSD, marijuana and all narcotic drugs. However, this exclusion does not apply to the legiti- mate use of prescription drugs by a person following the orders of a licensed physician. Exclusions e., f., g., and h. do not apply to "bodily in- jury" to a "residence employee" arising out of and in the course of the "residence employee's" employment by an "insured." Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 18 of 41 POLICY NUMBER 2. Coverage E • Personal Liability, does not apply to: a. Liability: (1) For any loss assessment charged against you as a member of an association or community of property owners; (2) Under any contract or agreement. However, this exclusion does not apply to written contracts: (a) That directly relate to the ownership, main- tenance or use of an "insured location"; or (b) Where the liability of others is assumed by the "insured" prior to an "occurrence"; unless excluded in (1) above or elsewhere in this policy; b. "Property damage" to property owned by the "in- sured"; c. "Property damage" to property rented to, occupied or used by or in the care of the "insured." This exclusion does not apply to "property damage" caused by fire, smoke or explosion; d. "Bodily injury" to any person eligible to receive any benefits: (1) Voluntarily provided; or (2) Required to be provided; by the "insured" under any; (1) Workers' compensation law; (2) Non -occupational disability law; or (3) Occupational disease law; e. "Bodily injury" or "property damage" for which an "insured" under this policy: (1) Is also an insured under a nuclear energy liability policy; or (2) Would be an insured under that policy but for the exhaustion of its limit of liability. A nuclear energy liability policy is one issued by: (1) American Nuclear Insurers; (2) Mutual Atomic Energy Liability Underwriters; (3) Nuclear Insurance Association of Canada; or any of their successors; or I. "Bodily injury" to you or an "insured" within the meaning of part a. or b. of "insured" as defined. 3. Coverage F Medical Payments to Others, does not apply to "bodily injury": a. To a "residence employee" if the "bodily injury": (1) Occurs off the "insured location"; and (2) Does not arise outof or in the course of the "residence employee's" employment by an "in- sured"; b. To any person eligible to receive benefits. (1) Voluntarily provided; or (2) Required to be provided; under any: (1) Workers' compensation law; (2) Non -occupational disability law; or (3) Occupational disease law; c. From any; (1) Nuclear reaction; (2) Nuclear radiation; or (3) Radioactive contamination; all whether controlled or uncontrolled or however caused; or (4) Any consequence of any of these; or d. - To any person, other than a "residence employee" of an "insured," regularly residing on any part of the "insured location." SECTION 11 - ADDITIONAL COVERAGES We cover the following in addition to the limits of liability: 1. Claim Expenses. We pay: a. Expenses we incur and costs taxed against an "in- sured" in any suit we defend; HO 0003 (04-91) Page 15 of 18 b. Premiums on bond required in a suit we defend, but not for bond amounts more than the limit of liability for Coverage E. We need not apply for or furnish any bond; Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 19 of 41 POLICY NUMBER c. Reasonable expenses incurred by an "insured" at our request, including actual loss of earnings (but not loss of other income) up to $50 per day, for as- sisting us in the investigation or defense of a claim or suit; and d. Interest on the entire judgment which accrues after entry of the judgment and before we pay or tender, or deposit in court that pan of the judgment which does not exceed the limit of liability that applies. 2. First Aid Expenses. We will pay expenses for first aid to others incurred by an "insured" for "bodily injury" covered under this policy. We will not pay for first aid to you or any other "insured." 3. Damage to Property of Others. We will pay, at re- placement cost, up to $500 per "occurrence" for "pro- perty damage" to property of others caused by an "insured." We will not pay for "property damage": a. To the extent of any amount recoverable under Section I of this policy; b. Caused intentionally by an "insured" who is 13 years of age or older; c. To property owned by an "insured"; d. To property owned by or rented to a tenant of an "insured" or a resident in your household; or e. Arising out of: (1) A "business" engaged in by an "insured"; (2) Any act or omission in connection with a prem- ises owned, rented or controlled by an "insured," other than the "insured location"; or (3) The ownership, maintenance, or use of aircraft, watercraft or motor vehicles or all other motor- ized land conveyances. This exclusion does not apply to a motorized land conveyance designed for recreational use off public roads, not subject to motor vehicle registration and not owned by an "insured." 4. Loss Assessment. We will pay up to $1000 for your share of loss assessment charged during the policy pe- riod against you by a corporation or assocation of pro- perty owners, when the assessment is made as a result of: a. "Bodily injury" or "property damage" not excluded ' under Section II of this policy; or b. Liability for an act of a director, officer or trustee in the capacity as a director, officer or trustee, pro- vided: rovided: (1) The director, officer or trustee is elected by the members of a corporation or association of pro- perty owners; and (2) The director, officer or trustee serves without deriving any income from the exercise of duties which are solely on behalf of a corporation or association of property owners. This coverage applies only to loss assessments charged against you as owner or tenant of the "residence premises." We do not cover loss assessments charged against you or a corporation or association of property owners by any governmental body. Regardless of the number of assessments, the limit of $1000 is the most we will pay for loss arising out of: a. One accident, including continuous or repeated ex- posure to substantially the same general harmful condition; or b. A covered act of a director, officer or trustee. An act involving more than one director, officer or trustee is considered to be a single act. The following do not apply to this coverage: 1. Section II - Coverage E - Personal Liability Exclusion 2.a.(1); 2. Condition 1. Policy Period, under SECTIONS I AND II - CONDITIONS. SECTION II - CONDITIONS 1. Limit of Liability. Our total liability under Coverage E for all damages resulting from any one "occurrence" will not be more than the limit of liability for Coverage E as shown in the Declarations. This limit is the same regardless of the number of "insureds," claims made or persons injured: HO 0003 (04-91) Page 16 of 18 All "bodily injury" and "property damage" resulting from any one accident or from continuous or repeated expo- sure to substantially the same general harmful conditions shall be considered to be the result of one "occurrence." Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 20 of 41 POLICY NUMBER Our total liability under Coverage F for all medical ex- penses payable for "bodily injury" to one person as the result of one accident will not be more than the limit of liability for Coverage F as shown in the Declarations. 2. Severability of Insurance. This insurance applies sepa- rately to each "insured." This condition will not increase our limit of liability for any one "occurrence." 3. Duties After Loss. In case of an accident or "occur- rence," the "insured" will perform the following duties that apply. You will help us by seeing that these duties are performed: a. Give written notice to us or our agent as soon as is practical, which sets forth; (1) The identity of the policy and "insured"; (2) Reasonably available information on the time, place and circumstances of the accident or "oc- currence"; and (3) Names and addresses of any claimants and wit- nesses; b. Promptly forward to us every notice, demand, sum- mons or other process relating to the accident or "occurrence"; c. At our request, help us: (1) To make settlement; (2) To enforce any right of contribution or idemnity against any person or organization who may be liable to an "insured": (3) With the conduct of suits and attend hearings and trials; and (4) To secure and give evidence and obtain the at- tendence of witnesses; d. Under the coverage - Damage to Property of Others - submit to us within 60 days after the loss, a sworn statement of loss and show the damaged property, if in the "insured's" control; e. The "insured" will not, except at the "insured's" own cost, voluntarily make payment, assume obligation or incur expense other than for first aid to others at the time of the "bodily injury." 4. -Duties of an Injured Person - Coverage F - Medical Tap/lents to Others. The injured person or someone acting for the injured person will: a. Give us written proof of claim, under oath if re- quired, as soon as is practical; and b. Authorize us to obtain copies of medical reports and records. The injured person will submit to a physical exam by a doctor of our choice when and as often as we reason- ably require. 5. Payment of Claim - Coverage F - Medical Payments to Others. Payment under this coverage is not an admis- sion of liability by an "insured" or us. 6. Suit Against Us. No action can be brought against us unless there has been compliance with the policy pro- visions. No one will have the right to join us as a party to any action against an "insured." Also, no action with re- spect to Coverage E can be brought against us until the obligation of the "insured" has been determined by final judgment or agreement signed by us. 7. Bankruptcy of an Insured. Bankruptcy or insolvency of an "insured" will not relieve us of our obligations under this policy. 8. Other Insurance - Coverage E • Personal Liability. This insurance is excess over other valid and collectible in- surance except insurance written specifically to cover as excess over the limits of liability that apply in this policy. SECTION I AND fi - CONDITIONS 1. Policy Period. This policy applies only to loss in Section I or "bodily injury" or "property damage" in Section II, which occurs during the policy period. 2. Concealment or Fraud. The entire policy will be void, if, whether before or after a loss, an "insured" has: a. Intentionally concealed or misrepresented any mate- rial fact or circumstance; b. Engaged in fraudulent conduct; or HO 0003 (04-91) Page 17 of 18 c. Made false statements; relating to this insurance. Liberalization Clause. If we make broadens coverage under this edition o out additional premium charge, that matically apply to your insurance as implement the change in your state, implementation date falls within 60 during the policy period stated in the a change which f our policy with - change will auto - of the date we provided that this days prior to or Declarations. Case 1.:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 2 POLICY NUMBER of 41 This Liberalization Clause does not apply to changes implemented through introduction of a subsequent edi- tion of our policy. 4. Waiver or Change of Policy Provisions. A waiver or change of a provision of this policy must be in writing by us to be valid. Our request for an ap- praisal or examination will not waive any of our rights. S. Cancellation. a. You may cancel this policy at any time by returning it to us or by letting us know in writing of the date cancellation is to take effect. b. We may cancel this policy only for the reasons stated below by letting you know in writing of the date cancellation takes effect. This cancellation no- tice may be delivered to you, or mailed to you at your mailing address shown in the Declarations. Proof of mailing will be sufficient proof of notice. (1) When you have not paid the premium, we may cancel at any time by letting you know at least 10 days before the date cancellation takes effect. (2) When this policy has been in effect for less than 60 days and is not a renewal with us, we may cancel for any reason by letting you know at least 10 days before the date cancellation takes effect. (3) When this policy has been in effect for 60 days or more, or at any time if it is a renewal with us, we may cancel; (a) If there has been a material misrepresen- tation of fact which if known to us would have caused us not to issue the policy; or (b) If the risk has changed substantially since the policy was issued. This can be done by letting you know at least 30 days before the date cancellation takes effect. (4) When this policy is written for a period of more than one year, we may cancel for any reason at anniversary by letting you know at least 30 days before the date cancellation takes effect. Copyright, Insurance Services Office, Inc., 1990 c. When this policy is cancelled, the premium for the period from the date of cancellation to the expiration date will be refunded pro rata. d. If the return premium is not refunded with the notice of cancellation or when this policy is returned to us, we will refund it within a reasonable time after the date cancellation takes effect. 6. Nonrenewal. We may elect not to renew this policy. We may do so by delivering to you, or mailing to you at your mailing address shown in the Declarations, written notice at least 30 days before the expiration date of this policy. Proof of mailing will be sufficient proof of notice. 7. Assignment. Assignment of this policy will not be valid unless we give our written consent. 8. Subrogation. An "insured" may waive in writing before a loss all rights of recovery against any person. If not waived, we may require an assignment of rights of re- covery for a loss to the extent that payment is made by us. If an assignment is sought, an "insured" must sign and deliver all related papers and cooperate with us. Subrogation does not apply under Section Il to Medical Payments to Others or Damage to Property of Others. 9. Death. If any person named in the Declarations or the spouse, if a resident of the same household, dies: a. We insure the legal representative of the deceased but only with respect to the premises and property of the deceased covered under the policy at the time of death; b. "Insured" includes: (1) any member of your household who is an "in- sured" at the time of your death, but only while a resident of the "residence premises"; and (2) With respect to your property, the person having proper temporary custody of the property until appointment and qualification of a legal repre- sentative. HO 0003 (04-91) Page 13 of 18 Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 22 of 41 POLICY NUMBER NO Section Ii - Liability Coverages for Home Day Care Business LIMITED Section 1 - Property Coverages for Home Day Care Business If an "insured" regularly provides home day care services to a person or persons other than "insureds" and receives monetary or other compensation for such services, that enterprise is a "business." Mutual exchange of home day care services, however, is not considered compensation. The rendering of home day care services by an "insured" to a relative of an "insured" is not considered a "business." Therefore, with respect to a home day care enterprise which is considered to be a "business," this policy: 1. Does not provide Section II - Liability Coverages because a "business" of an "insured" is excluded under exclusion 1.b. of Section II - Exclusions; 2. Does not provide Section I - Coverage H coverage where other structures are used in whole or in part for "busi- ness"; HO 0496 (04-91) 3. Limits coverage for property used on the "residence premises" for the home day care enterprise to $2,500, because Coverage C - Special Limits of Liability - item 8. imposes that limit on "business" property on the "residence premises." (Item 8. corresponds to item 5. in Form HO 0008.); 4. Limits coverage for property used away from the "resi- dence premises" for the home day care enterprise to $250, because Coverage C - Special Limits of Liability - item 9. imposes that limit on "business" property away from the "residence premises." Special Limit of Liability item 9. does not apply to adaptable electronic apparatus as described in Special Limit of Liability items 10. and 11. (Items 9., 10. and 11. correspond to items 6.. 7. and 8. respectively in Form HO 0008.) THIS ENDORSEMENT DOES NOT CONSTITUTE A REDUCTION OF COVERAGE. Copyright, Insurance Services Office, Inc., 1990 Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 23 of 41 POLICY NUMBER h atrieowners POLICY. COVERAGE AMENDMENTS SECTION I - PROPERTY COVERAGES ADDITIONAL COVERAGES We will pay up to $1,000 for Credit Card, Fund Transter Card, Forgery and Counterfeit Money coverage provided in Item b. of the policy form attached. SECTION II - LIABILITY COVERAGES SECTION II - EXCLUSIONS 1. Exclusion 1.b. does not apply to the following incidental business pursuits. The delivering of newspapers, babysitting, caddying, caring for lawns or other similar incidental business pursuits conducted by an "insured" who has not attained the age of 18 years. 2. Exclusion 1.g. is replaced with the following: g. Arising out of: (1) The ownership, maintenance, use, loading or unloading of an excluded watercraft described below; (2) The entrustment by an "insured" of an excluded watercraft described below to any person; or (3) Vicarious liability, whether or not statutorily imposed, for the actions of a child or minor using an excluded watercraft described below. Excluded watercraft are those that are principally designed to be propelled by engine power or electric motor, or are sailing vessels, whether owned by or rented to an "insured." This exclusion does not apply to watercraft. (1) That are not sailing vessels and are powered by: (a) Inboard or inboard-outdrive engine or motor power of 50 horsepower or less not owned by an "insured"; (b) Inboard or inboard-outdrive engine or motor power of more than 50 horsepower not owned by or rented to an "insured"; (c) Inboard or inboard-outdrive engine or motor power of.50 horsepower or less and 15 feet or less in overall length and owned by an 'insured"; (d) One or more outboard engines or motors regardless of total horsepower. (2) That are sailing vessels, with or without auxiliary power: (a) Less than 26 feet in •overall length; (b) 26 feet or more in overall length, not owned by or rented to an "insured." (3) That are stored; HO 7002 (06-06) Page 1 of 2 Motorists Mutual Insurance Company 471 East Broad Street, Columbus, Ohio 43215-3861 Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 24 of 41 POLICY NUMBER MUTUAL PROVISIONS Annual Meeting The annual meeting of the membership of the company is held at its home office in Columbus, Ohio on the fourth Monday in April of each year at- one o'clock p.m. unless said day is a holiday in which event the next succeeding day, not a holiday. Nonassessable This policy is nonassessable. While this policy is in force, the named insured is a member of the company and, as such, is entitled to the privileges provided by the by-laws at the company. In Witness Whereof, Motorists Mutual Insurance Company has caused this policy to be signed by its President and Secretary at Columbus, Ohio. 40exj Secretary President and COO HO 1002 (06-06) Page 2 of 2 Case 1:13-cv-02724-YK Document 1-3 File- 11/06113 Page 25 of 41 POLICY NUMBER Identity Fraud Expense Coverage HO 7050 (09-04) THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. DEFINITIONS With respect to the provisions of this endorsement only. the following definitions are added: 1. "Identity fraud" means the act of knowingly transferring or using, without lawful authority. a means of identifi- cation of an "insured" with the intent to commit, or to aid or abet another to commit, any unlawful activity that constitutes a violation of federal law or a felony under any applicable state or local law. 2. "Expenses" means: a. Costs for notarizing affidavits or similar documents attesting to fraud required by financial institutions or similar credit grantors or credit agencies. b. Costs for certified mail to law enforcement agencies. credit agencies, financial institutions or similar credit grantors. c. lost income resulting from time taken off work to complete fraud affidavits, meet with or talk to law enforcement agencies, credit agencies and/or legal counsel, up to a maximum payment of $200 per day. Total payment for lost income is not to exceed $5,000. d. Loan application fees for re -applying for a loan or loans when the original application is rejected solely because the lender received incorrect credit informa- tion. e. Reasonable attorney fees incurred as a result of "identity fraud" to: (1) Defend lawsuits brought against an "insured" by merchants. financial institutions or their collection agencies; (2) Remove any criminal or civil judgments wrongly entered against an "insured"; and (3) Challenge the accuracy or completeness of any information in a consumer credit report. t. Charges incurred for long distance telephone calls to merchants, law enforcement agencies, financial in- stitutions or similar credit grantors, or credit agen- cies to report or discuss an actual "identity fraud." The following Additional Coverage is added under Section I: IDENTITY FRAUD EXPENSE We will pay up to $15,000 for "expenses" incurred by an "insured" as the direct result of any one "identity fraud" first discovered or learned of during the policy period. Any act or series of acts committed by one or more per- sons, or in which such person or persons are aiding or abetting others against an "insured," is considered to be one "identity fraud," even if a series of acts continues into a subsequent policy period. This coverage is additional insurance. EXCLUSIONS The following additional exclusions apply to this coverage: We do not cover: 1. Loss arising out of or in connection with a "business." 2. "Expenses" incurred due to any fraudulent, dishonest or criminal act by an 'insured" or any person aiding or abetting an "insured," or by any authorized represen- tative of an "insured," whether acting alone or in collu- sion with others. 3. Loss other Than "expenses." SPECIAL DEDUCTIBLE We will pay only that pan of the loss that exceeds 5250. No other deductible applies to "identity fraud" expense coverage. SECTION I - CONDITION 2. Your DutiesAtter Loss The following is added: Send to us, within 60 days after our request. receipts, bills or other records that support your claim for "expenses' under "identity fraud" coverage. All other provisions on this policy apply. Includes copyrighted material of ISO Properties, Inc., with its permission. Copyright, ISO Properties, Inc., 2002 Motorists Mutual Insurance Company HO 7050 (09-04) Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 26 of 41 POLICY NUMBER Waterbed Coverage HO 7125 (01.95} THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. The following provisions are added to this policy: SECTION I We insure for direct physical loss to property covered under Section I caused by accidental discharge of water from within a waterbed. This coverage does not apply to loss on the "residence premises" resulting from freezing while the dwelling is unoccupied unless you have used reasonable care to maintain heat in the dwelling. SECTION 11 Coverage E - Personal Liability applies to "property damage" arising out of an "insured's" ownership or use of a waterbed in the residence occupied by the "insured." At other provisions of this policy apply. Motorists Mutual Insurance Company Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 27 of 41 POLICY NUMBER Special Provisions - Pennsylvania HO 7137 (08-10) THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. Throughout this policy, the following is added to any pro- vision which uses the term actual cash ;value: Actual cash value is calculated as the amount it would cost to repair or replace covered property, at the time of loss or damage, with material of like kind and quality, subject to a deduction for deterioration, depreciation and obsolescence. Actual cash value applies to valuation of covered property regardless of whether that property has sustained partial or total loss or damage. The actual cash value of the lost or damaged property may be significantly less than its replacement cost. SECTION I - PROPERTY COVERAGES COVERAGE C - Personal Property Special Limits of Liability Items 10. and 11. are deleted and replaced by the following (These are items 7. and 8. in form HO 0008): 10. $1000 for loss to electronic apparatus, while in or upon a motor vehicle or other motorized land conveyance, if the electronic apparatus is equipped to be operated by power from the electrical system of the vehicle or con- veyance while retaining its capability of being operated by other sources of power. Electronic apparatus in- cludes: a. Accessories and antennas; or b. Tapes, wires, records, discs or other media; for use with any electronic apparatus described in this item 10. 11. $1000 for loss to electronic apparatus, while not in or upon a motor vehicle or other motorized land convey- ance, onveyance, if the electronic apparatus: a. Is equipped to be operated by power from the elec- trical system of the vehicle or conveyance while re- taining its capability of being operated by other sources of power; b. Is away from the "residence premises"; and c. Is used at any time or in any manner for any "bu- siness" purpose. Electronic apparatus includes: a. Accessories and antennas; or b. Tapes, wires, records, discs or other media; for use with any electronic apparatus described in this item 11. Property Not Covered Item 3.b. is deleted and replaced by the following: 3. Motor vehicles or all other motorized land conveyances. This includes: b. Electronic apparatus that is designed to be operated solely by use of the power from the electrical system of motor vehicles or all other motorized land con- veyances. Electronic apparatus includes: (1) Accessories or antennas; or (2) Tapes, wires, records, discs or other media; for use with any electronic apparatus described in this item 3.b. The exclusion of property described in 3.a. and 3.b. above applies only while the property is in or upon the vehicle or conveyance. We do cover vehicles or conveyances not subject to motor vehicle registration which are: a. Used to service an "insured's" residence; or b. Designed for assisting the handicapped; COVERAGE 0 - Loss of Use • For all forms other than HO 0004 and HO 0005, Item 1. is deleted and replaced by the following: 1. If a loss covered under this Section makes that part of the "residence premises" where you reside not fit to live in, we cover the Additional Living Expense, meaning any necessary increase in living expenses incurred by you so that your household can maintain its normal standard of living. Payment will be for the shortest time required to repair or replace the damage or, if you permanently relocate, the shortest time required for your household to settle elsewhere. HO 7137 (08-10) Page 1 of 7 Case 1:13-cv-02724-YK Document POUCY NUMBER Filed 11/06/13 Page 28 of 41 For forms HO 0004 and HO 0006, Item 1. is deleted and replaced by the following: 1. If a loss by a Peril Insured Against under this polio to covered property or the building containing the property makes the "residence premises" not fit to live in, we cover the Additional Living Expense, meaning any nec- essary increase in living expenses incurred by you so that your household can maintain its normal standard of living, Payment will be for the shortest time required to repair or replace the damage or, if you permanently relocate, the shortest time required for your household to settle elsewhere. ADDITIONAL COVERAGES 1. Debris Removal is deleted and replaced by the following: 1. Debris Removal A. We will pay your reasonable expense for the removal of: (1) Debris of covered property if a Peril Insured Against that applies to the damaged property causes the loss; or (2) Ash, dust or particles from a volcanic eruption that has caused direct loss to a building or pro- perty contained in a building. This expense is included in the limit of liability that applies to the damaged property. If the amount to be paid for the actual damage to the property plus the debris removal expense is more than the limit of liability for the damaged property, an additional 5% of the limit of liability is available for debris re- moval expense. (The second sentence of this para- graph does not apply to Form HO 0008.) 13.(1) If circumstances of a loss meet those specified in (2) below, we will pay your reasonable ex- pense, up to $500, for the removal from the "residence premises" of: a. Your tree(s) felled by the peril of Windstorm or Hail; b. Your tree(s) felled by the peril of Weight of Ice, Snow or Sleet (Forms HO 0002, HO 0003, HO 0004 and HO 0006 only); or c. A neighbor's tree(s) felled by a Peril Insured Against under Coverage C. The $500 limit is the most we will pay in any one loss regardless of the number of fallen trees. (2) Tree removal coverage as described in B.(1) above applies only if: a. The tree damages a structure covered under this policy; or b, Windstorm or Hail or Weight of Ice, Snow or Sleet causes damage to a structure covered un- der this policy and the Pennsylvania Governor declares the area in which the "residence prem- ises" is located to be a disaster area as a result of such weather conditions. 9. Glass or Safety Glazing Material is deleted and replaced by the following: 9. Glass or Safety Glazing Material. a. We cover: (1) For all forms other than HO 0004 and HO 0006, the breakage of glass or safety glazing material which is part of a covered building, storm door or storm window, and for: (a) Form HO 0004, the breakage of glass or safety glazing material which is part of a building, storm door or storm window, and covered as Building Additions and Alterations; and (b) Form HO 0006, the breakage of safety glaz- ing material which is part of a building, storm door or storm window, and covered under Coverage A; and (2) For all forms other than HO 0004 and HO 0006. the breakage, caused directly by Earth Move- ment, of glass or safety glazing material which is part of a covered building, storm door or storm window, and for: (a) Form HO 0004, the breakage, caused directly by Earth Movement, of glass or safety glaz- ing material which is part of a building, storm door or storm window, and covered as Building Additions and Alterations; and HO 7137 (08-10) Page 2 of 7 Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 29 of 41 POLICY NUMBER (b) Form HO 0006, the breakage, caused directly by Earth Movement, of glass or safety glaz- ing material which is part of a building, storm door or storm window, and covered under Coverage A; and (3) The direct physical loss to covered property caused solely by the pieces, fragments or splin- ters of broken glass or safety glaring material which is part of a building, storm door or storm window. b. This coverage does not include loss: (1) To covered property which results because the glass or safety glazing material has been broken, except as provided in a.(3) above; or (2) On the "residence premises" it the dwelling has been vacant for more than 30 consecutive days immediately before the loss, except when the breakage results directly from Earth Movement as provided for in a.(2) above. A dwelling being constructed is not considered vacant. Loss to glass covered under this ADDTIONAL COVER- AGE 9. will be settled on the basis of replacement, with safety glazing materials when required by ordinance or law. For Forms HO 0001 and HO 0008, we will pay up to $100 for loss under this coverage. This coverage does not increase the limit of liability that applies to the damaged property. (This is ADDITIONAL COVERAGE 8. in Forms HO 0001 and HO 0008.) The following ADDITIONAL COVERAGE is added to all Forms except HO 0008. With respect to Form HO 0004, the words 'covered building' used below, refer to property covered under ADDITIONAL COVERAGE 10. Building Additions and Alterations. 11. Ordinance or Law. a. You may use up to 101'0 of the limit of liability that applies to COVERAGE A (or for Form HO 0004, you may use up to 100/o of the limit of liability that ap- plies to Building Additions and Alterations) for the increased costs you incur due to the enforcement of any ordinance or law which requires or regulates: HO 7137 (08-10) Page 3 of 7 (1) The construction, demolition, remodeling, reno- vation or repair of that part of a covered building or other structure damaged by a PERIL INSURED AGAINST; (2) The demolition and reconstruction of the un- damaged part of a covered building or other structure, when that building or other structure must be totally demolished because of damage by a PERIL INSURED AGAINST to another part of that covered building or other structure; or (3) The remodeling, removal or replacement of the portion of the undamaged part of a covered building or other structure necessary to complete the remodeling, repair or replacement of that part of the covered building or other structure dam- aged by a PERIL INSURED AGAINST. b. You may use all or part of this ordinance or law coverage to pay for the increased costs you incur to remove debris resulting from the construction, demolition, remodeling, renovation, repair or re- placement of property as stated in a. above. c. We do not cover: (1) The loss in value to any covered building or other structure due to the requirements of any ordi- nance or law; or (2) The costs to comply with any ordinance or law which requires any "insured" or others to test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of, pollutants on any cov- ered building or other structure. Pollutants means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned or reclaimed. This coverage is additional insurance. (This is ADDITIONAL COVERAGE 10. in Forms HO 0001 and HO 0006.) Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 31 of 41 POLICY NUMBER (b) Attempting to cause or intentionally, knowingly or recklessly causing damage to covered property so as to intimidate or attempt to control the behavior of an- other person. If we pay a claim under this provision 8-b., our payment to the "insured" is limited to that "insured's" insurable interest in the property. In no event will we pay more than the Limit of Li- ability. (This is exclusion 1.h. in form HO 0003.) SECTION I - CONDITIONS 2. Your Duties After Loss. Under all Forms, item 2.a. is deleted and replaced by the following: a. Give prompt notice to us or our agent except for loss caused by wind or hail. (1) Special wind or hail loss notice provision: (a) Give notice to us or our agent for loss caused by wind or hail within one year after the date of the loss. (b) We will not pay far loss caused by wind or hail unless notice is given to us or our agent within one year after the date of loss. Under 3. Loss Settlement in Forms HO 0002 and HO 0003, item b.(1) is deleted and replaced by the following: b. Buildings under Coverage A or B at replacement cost without deduction for depreciation, subject to the following: (1) If, at the time of loss, the amount of insurance in this policy on the damaged building is 80% or more of the full replacement cost of the building immediately before the loss, we will pay the cost to repair or replace, after application of the deductible and without deduction for depre- ciation, but not more than the least of the fol- lowing amounts: (a) The limit of liability under this policy that appCes to the building; (b) The replacement cost of that part of the building damaged; or (c) The necessary amount actually spent to re- pair or replace the damaged building. The replacement cost will not exceed that nec- essary for like construction and use on the same premises; regardless of whether the replacement building or repaired building is located on the same or at different premises. 3. Loss Settlement. Under Form HO 0006, item b.(2) is deleted and replaced by the following: (2) If the damage is not repaired or replaced within a reasonable time, at actual cash value but not more than the amount required to repair or re- place. 9. Our option is deleted and replaced by the following: 9. Our Option. We may repair or replace any part of the damaged property with like property if we give you written notice of our intention to do so within 15 work- ing days after we receive your signed, sworn proof of loss. SECTION II - LIABILITY COVERAGES Item 1. Coverage E - Personal Liability is deleted and re- placed by the following: 1. Pay up to our limit of liability for the damages for which the "insured" is legally liable; and Under Coverage F - Medical Payments to Others: Medical expenses do not include expenses for funeral ser- vices. SECTION II - EXCLUSIONS Under 1. COVERAGE E - Personal Liability and COVERAGE F - Medical Payments to Others, paragraph a. is deleted and replaced by the following: a. Which is expected or intended by one or more "in- sureds"; SECTION II • ADDITIONAL COVERAGES Under 1. Claim Expenses, the following paragraph is added: e. Prejudgment interest awarded against the "insured" on that part of the judgment we pay. Any prejudg- ment interest awarded against the "insured" is sub- ject to the applicable Pennsylvania Rules of Civil Procedure. SECTIONS I AND II • CONDITIONS 2. Concealment or Fraud is deleted and replaced by the following: HO 7137 (08-10) Page 5 of 7 Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 32 of 41 POLICY NUMBER 2. Concealment or Fraud. a. Under SECTION I - Property Coverages, with respect to at "insureds" covered under this policy, we pro- vide no coverage for loss under SECTION I - Prop- erty Coverages if, whether before or after a loss, one or more "insureds" -rave: (1) Intentionally concealed or misrepresented any material fact or circumstance; (2) Engaged in fraudulent conduct; or (3) Made false statements; relating to this insurance. b. Under SECTION II - Liability Coverages, we do not provide coverage to one or more "insureds" who, whether before or after a loss, have: (1) Intentionally concealed or misrepresented any material fact. or circumstance; (2) Engaged in fraudulent conduct; or (3) Made false statements; relating to this insurance. 5. Cancellation. Paragraph b. is deleted and replaced by the following: b. We may cancel this policy only for the reasons stated below by notifying the "insured" in writing of the date cancellation takes effect. This cancellation_ notice may be delivered to or mailed to the "insured" named in the Declarations at the mailing address shown in the policy or at a forwarding address. Proof of mailing will be sufficient proof of notice. (1) When this policy has been in effect for less than 60 days and is not a renewal with us, we may cancel for any reason by notifying the "insured" named in the Declarations at least 30 days before the cancellation takes effect. (2) When this policy has been in effect for 60 days or more, or at any time if it is a renewal with us, we may cancel only for one or more of the following reasons by notifying the "insured" named in the Declarations at least 30 days prior to the proposed cancellation date: (a) This 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 us; (b) There has been a substantial change ,or -in- crease in hazard in the risk assumed by us subsequent to the date the policy was is- sued; (c) There is a substantial increase in hazard in- sured against by reason of willful or negligent acts or omissions try the "insured"; (d) The "insured" has failed to pay the premium by the due date, whether payable to us or to our agent or under any finance or credit plan; or (e) For any other reason approved by the Penn- sylvania Insurance Commissioner. This provision shall not apply if the named "in- sured" has demonstrated by some overt action to us or to our agent that the "insured" wishes the policy to be cancelled. Delivery of such written notice by us to the "in- sured" named in the Declarations at the mailing address shown in the policy or at a forwarding address shall be equivalent to mailing. 6. Nonrenewal is deleted and replaced by the following: 6. Nonrenewal. We will not fail to renew this policy except for one of the reasons referred to in the Cancellation Provision of this endorsement. We may refuse to renew for one of the listed reasons by mailing to the "insured" named in the Declarations at the mailing address shown in the policy or at a forwarding address, written notice at least 30 days prior to the expiration date of this pol- icy. This provision does not apply if: a. We have indicated our willingness to renew and the "insured" has failed to pay the premium by the due date; or b. The named "insured" has indicated to us or our agent that the "insured" does not wish the policy to be renewed. HO 7137 (08-10) Page 6 of 7 Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 33 of 41 POLICY NUMBER Delivery of such written notice by us to the "insured" named in the Declarations at the mailing address shown in the policy or at a forwarding address shall be equivalent to mailing. 9. Death. Paragraph b. is deleted and the following added; b. Insurance under this policy will continue as provided in (1) or (2) below, whichever is later: (1) For 180 days after your death regardless of the policy period shown in the Declarations, unless your premises and property, covered under the policy at the time of your death, is sold prior to that date; or (2) Until the end of the policy period shown in the Declarations, unless your premises and property, covered under the policy at the time of your death, is sold prior to that date. Coverage during the period of time after your death is subject to all the provisions of this policy including payment of any premium due for the policy period shown in the Declarations and any extension of that period; c. "Insured" includes: (1) Any member of your household who is an "in- sured" at the time of your death, but only while a resident of the "residence premises"; and (2) With respect to your property, the person having proper temporary custody of the property until appointment and qualification of a legal repre- sentative. All other provisions of this policy apply. Includes copyrighted material of ISO Properties, Inc., with its permission. Copyright, ISO Properties Inc., 2006 Motorists Mutual Insurance Company HO 7137 (08-10) Page 7 of 7 Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 35 of 41 POLICY NUMBER Preferred Homeowners Endorsement HO 7140 (12-05) (Form H0 0002 or HO 0003) THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. The following provisions are added to this policy. �;- SECTION I - REPLACEMENT OR REPAIR COST PROTECTION - COVERAGE A - DWELLING We agree to amend the present coverage amounts indicated on the Declarations page in accordance with the following pro- visions. 1. If you have: a. allowed us to adjust the Coverage A limit of liability and the premium in accordance with: (1) the property evaluations we make; and (2) any increase in inflation; and b. notified us, within 30 days of completion, of any alterations to the dwelling which increase the replacement cost of the dwelling by 5%%o or more; and c: elected to repair or replace the damaged building; We will: a. increase the Coverage A limit of liability up to 50% if the amount of loss to the dwelling is more than the limit of liability indicated on the Declarations page. The limits of liability for Coverages B, C and D remain the same as indicated on the Declarations page; b. on the day after the loss adjust the limits of liability and premium for the remainder of the policy term for Coverages B, C and D by the same percentage increase as applied to Coverage A. 2. If you comply with the provisions of this endorsement and there is a loss to a building insured under Coverage A, Section I Condition 3. Loss Settlement paragraph b. is deleted and replaced by paragraphs b., c. and d. as follows: b. Buildings under Coverage A or B at replacement cost without deduction for depreciation. We will pay no more than the smallest of the following amounts for equivalent Construction and use on the same premises: (1) the replacement cost of the building or any parts of it; (2) the amount actually and necessarily spent to repair or replace the building or any parts of it; (3) the applicable limit of liability whether increased or not, adjusted in accordance with paragraph 1. above. c. We will pay no more than the actual cash value of the damage until actual repair or replacement is completed. d. You may disregard the replacement cost loss settlement provisions and make claim under this policy for loss or damage to buildings on an actual cash value basis and then make claim within 180 days after loss for any additional liability on a replacement cost basis. This coverage does not apply to lane, including land on which the dwelling or structures are located. ANIMALS, BIRDS OR FISH We cover animals, birds or fish owned by an insured only while on the insured "residence premises" subject to all policy provisions applicable to Coverage C - Personal Property with the following conditions, exceptions and limitations: HO 7140 (12-05) Page 1 of 3 Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 36 of 41 POLICY NUMBER 1. Except for loss from theft, we cover only the death or necessary destruction of animals, birds or fish, and only when the direct result of a Peril insured Against. 2. Our limit of liability shall not exceed S500. 3. We will not cover any loss resulting from vehicles. 4. The provisions in Form HO 0015. if attached, do not apply to this coverage. 5. No deductible applies to this coverage. DEBRIS REMOVAL - TREES, SHRUBS AND OTHER PLANTS We will pay the reasonable expense incurred by you in the removal of debris of trees, shrubs and other plants, from the "residence premises," when the damage is caused by windstorm, hail, or weight of ice, snow or sleet. Our limit of liability for this coverage shall not exceed $500. This coverage applies only when not provided elsewhere in policy forms attached. Any deductible applicable to Section I applies to this coverage, but only one deductible amount shall be applied to each oc- currence. PERSONAL PROPERTY COVERAGE EXTENSION Coverage on personal property described in Coverage C is extended to include the perils of flood, earthquake, landslide, mudflow and collision or overturn of a transporting conveyance only while the property is away from any. premises or location owned by an insured. Our limit of liability for this coverage shall not exceed $1,000. This coverage extension applies only when coverage is not provided elsewhere in the policy forms attached. Any deductible applicable to Section I applies to this coverage. Section .1 Exclusions 2 and 3 of Form HO 0002 and Section I Exclusions 1.b. and 1.c. of Form HO 0003 do not apply to any coverage that i5 provided by this coverage extension. POWER INTERRUPTION COVERAGE D - Loss of Use The following item is added: 4. If an interruption of power or other utility service away from the "residence premises," caused by a Pent Insured Against in this policy, makes the "residence premises" uninhabitable, we cover any resulting Additional Living Expense and Fair Rental Value loss for a period of time not exceeding one week during which the "residence premises" is uninhabitable. Coverage commences 48 hours after the "residence premises" is made uninhabitable. The period of time under this item is not limited by expiration of this policy. Section I Exclusion 4 of Form HO 0002 and Section I Exclusion 1.d. of Form HO 0003 do not apply to coverage provided in this item. PROHIBITED USE COVERAGE D - Loss of Use The following section is added to Item 3: If a civil authority prohibits you from use of the "residence premises" due to endangerment from a Peril Insured Against, we cover any resulting Additional Living Expense and Fair Rental Value loss for a period of time not exceeding one week during which use is prohibited. Coverage commences 48 hours after use has been prohibited. HO 7140 (12-05) Page 2 of 3 Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 38 of 41 POLICY HUMBER Premises Alarm or HO 7416 (04-02) Fire Protection System For a premium credit, or to quality for your Homeowners program, we acknowledge the installation of an alarm system or automatic sprinkler system approved by us on the "residence premises." You agree to maintain this system in workinT order and to let us know promptly of any change made to the system or if it is removed. Includes copyrighted material of Insurance Services Office, Inc., with its permission Copyright, Insurance Services Office, Inc., 1990 Motorists Mutual Insurance Company Case 1:13-cv-02724-YK Document 1-3 Filed 11IO6/13 Page 40 of 41 POUGY HUMBER (2) We wit send to you the balance, if any, of the loss payment previously agreed upon when you notify us of the completion of the repairs or the expected delivery date of the replaced property. (3) If you do not comply with the above terms at any time, we will pay no more than the actual cash value for the loss or damage. In such case, if the amount we advanced to you is more than the actual cash value, you shall refund the difference to us within 30 days of the date we mail our refund notice to you. c. You may make a claim for loss on an actual cash value basis and then make claim within 180 days after the loss for any additional liability in accordance with this endorsement. All other provisions of this policy apply. Includes copyrighted material of Insurance Services Office, Inc. with its permission. Copyright, Insurance Services Office, Inc., 1992 Motorists Mutual insurance Company 40 7363 (01-95) Page 2 of 2 Case 1:13-cv-02724-YK Document 1-3 Filed 11/06/13 Page 41 of 41 POLICY HOMIER inflation Protection Endorsement HO 7123 (01-95 Homeowners Policy THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. We wilt adjust the limits of liability shown in the aectarations for Coverages A, B, C and D as reflected by the change in the Residential Construction Cost Index furnished by E. H. Boeckh Co., but only when current coverage limits increase as a result of the change. We will determine policy limits on a specific date by multiplying the limits of liability by a change factor. The factor is cal culated by dividing the latest available index applicable at the time the Coverage A amount was last adjusted. At no time will we reduce the limits of liability to amounts less than those shown in the Declarations. All other provisions of this policy apply. Motorists Mutual Insurance Company Case 1:13-cv-02724-YK Document 1-4 Filed 11/06113 Page 1 of 2 11The Motorists Insurance L. A I Group,You know usr P.Q. Box 18,2475, COitiTribUS, C)1-113 March 43 26, 2013 SCOTT FARRELL 5 HILLTOP CIR CARLISLE PA 17013 B-2476 Claim number 5468376 Insured : SCOTT FARRELL KATHLEEN FARRELL Date of occurrence : 03/20/2013 Dear Mr. Farrell, M .r.lotoe-.$1sgroup.corn This will acknowledge receipt of the Complaint filed against you, Kathleen, and Scott Jr. in Cumberland County Court of Pennsylvania. Wemust advise you that while Motorists Mutual will be providing for your defense., there are allegations asserted and damages requested in the Complaint for which, if proven, there may be no coverage available through. the policy of insurance that Motorists Mutual issued to you. Allegations of negligence may not be subject to coverage through the policy of insurance for there are exclusionary provisions within the policy of insurance and its amendatory endorsements that may exclude all Or a portion of these claims. Directing your attention to the policy of insurance, the Homeowners Coverage Form HO 003 (04191), it provides: Section Liability Coverages If a claim is made or a suit is brought against an "insured' for damages because of "bodily injury' or l'property damage" caused by an "occuirence" to which this coverage applies, we will: 1. Pay up to our limit of liability for the damages for which the "insured" is legally liable. Damages include prejudgment interest awarded against the "insured"; and 2. Provide a defense at cur expense by counsel of our choice, even if the suit is groundless, false or fraudulent. We may investigate and settle any claim or suit that we decide is appropriate. Our duty to settle or defend ends when the amount we pay for damages resulting from the "occurrence" equals our limit of liability. • Section II- Exclusions k. Arising out of sexual molestation, corporal punishment or physical or mental abuse; Tho Motorists Insuran= Group MOlonalst Malltlat ipswaras Company FAVrofras coutnpreiri WWI Platoon:re Company W.Ison annual InMsanne ::-Mrnprtry 'Mu:Wats Lite Insurance Compary MO InsArrna /got. Groan &root Itroltsrms, !LC MOO !tau:sons Con-rparry turrahu Inatiranco Cosipory 10.4131,A.11nriM1 iMASIWCIICO!!Var PIVen!X 5:aluot Flo :swoon C EXHIBIT Case 1:13-cv-02724-YK Document 1-4 Filed 11/06/13 Page 2 of 2 Recognizing that all others terms and conditions tmderMotorists "victual policy 71.6'9310270, and any policies previously or subsequently issued in your name by Motorists Mutual shall be applicable and unchanged unless otherwise provided by Motorists Mutual. .As such, Motorists Mutual will not waive any of the terms or conditions of the aforementioned policy or any previous or subsequent policies that Motorists Mutual has issued in your name. Motorists Mutual will continue to reserve its rights with regard to assertions and or defenses under the terms, conditions and definitions of the policy issued to you, In the event that itis determined that some or all of the claims asserted in the complaint are not covered, Motorists Mutual expressly reserves it right to allocate between covered and non -covered payments of settlement, judgments, defense fees and costs and to seek reimbursement from you. No payments by Motorists Mutual of settlement, judgments, defense fees and costs shall constitute a waiver of Motorists MMutual's right to later seek allocation and reimbursement of such settlement, judgments, defense fees and costs on the grounds that there is no duty to defend or indemnify all or a portion of the action. Motorists Mutual will proceed with the understanding that it does not waive any of the provisions or defenses, and. Motorists Mutual reserves its right to withdraw from the handling of this litigation at any time, before or after judgment, if it is determined that coverage is not available er offered under the policy of insurance issued in your name. Accordingly, Motorists Mutual reserves its right to seek judicial determination of its. obligations under the policy. By undertaking any action that Motorists Mutual deems necessary, Motorists Mutual does not waive any defense tc coverage that may exist to this claim under the policy or the law, whether asserted herein or not. Motorists Mutual does not waive any defense to coverage Rot assorted herein and may assert any such defense at any time. Recognizing that there is potential for, personal exposure we would be remiss if we clic; not advise you of its right to rettain personal counsel, at your own expense to represent your interest with respect to any personal exposure not covered under the policy of insurance. While you are under no obligation to do so, should you choose to engage personal counsel, we assure you that the attorney that Motorists Mutual has requested to provide fel-its defense with respect to this specific lawsuit will fully cooperate with any attorney that you may engage. Should you have any questions or concerns, please do not hesitate to contact the undersigned. Sincerely, Motorists Mutual Insurance Company y TREY IlENEGAR STAFF ATTORNEY (614) 220-6934 OR. (800) 876-8766 FAX: (866) 790-6431 TREY.HENEGAR@MOTORISTSGROUP.COM Case 1:13-cv-02724-YK Document 1-2 Filed 11/06/13 Page 4 of 13 10. The Perpetrator's father told E.G.'s mother she had nothing to worry about because the Perpetrator was a "good boy" and he merely acted young for his age and gravitated towards friendships with younger kids. 11. After this conversation, E.G.'s mother discovered information which led her to believe that the PeLpetrator was romantically pursuing, E.G. She called the Perpetrator's father and infouned him of her discovery and instructed him the relationship needed to end and that the Perpetrator was not welcome at her house. 12. It is believed and therefore averred that in late March, or the first week of April 2011, the Perpetrators' parents became aware that the Perpetrator was being accused of sexually assaulting an eleven. year old girl in an unrelated incident; and that the police were investigating the matter. 13.. At no time did the Perpetrators' parents give any indication to I.G.'s parents or E.G. that the Perpetrator had been accused of sexually assaulting a young girl. 14. In fact, despite knowledge of the allegations of sexual abuse of another young girl, and concerned communications from E.G.'s mother, the Perpetrator's parents continued to allow E.G. and the Perpetrator to spend time together alone and unsupervised in their house. 15. On multiple occasions in the late spring and surmner of 2011, the Perpetrator psychologically manipulated, exploited, groomed, and ultimately sexually assaulted E.G. in his parents' house, as well as other locations. At all times relevant hereto the Perpetrator was sixteen years old and E.G.. was twelve years old. Case 1:13-cv-02724-YK Document 1-2 Filed 11/06/13 Page 5 of 13 16. Although the Perpetrator did not intend to cause harp to E.G., his actions resulted in physical injuries, as well as severe emotional distress and psychological injuries. COUNT E.G. vs. Scott Farrell, Sr. and Kathleen Farrell NEGLIGENCE 17. The allegations set forth in the preceding paragraphs are incorporated by reference as if set forth at length. 18. At all tunes relevant, Defendants Scott Farrell, Sr. and Kathleen Farrell knew that Defendant Scott Farrell, Jr. was accused of having prior inappropriate sexual contact with young girls, had prior inappropriate sexual contact with young girls, and exhibited behaviors which demonstrated that he should not be left alone with a twelve year old girl. 19. At all times relevant, Defendants Scott Farrell, Sr. and Kathleen Farrell knew, permitted, encouraged, and facilitated Defendant Scott Farrell, Jr. to have contact with ?A nor - Plaintiff, including but not limited to, unsupervised contact on their property. 20. As the parents of a sixteen year old boy, Defendants Scott Farrell, Sr. and Kathleen Farrell had a special relationship with Defendant Scott Farrell, Jr., and they were generally responsible for raising him and setting rules and boundaries for his conduct, particularly within their home. 21. Defendants Scott Farrell, Sr. and Kathleen Farrell owed a duty of reasonable care to Minor -Plaintiff' as a result of their special relationship with Defendant Scott Farrell, Jr. and as owners and possessors of their home, upon which Minor -Plaintiff was an invitee. Case 1:13-cv-02724-YK Document 1-2 Filed 11/06/13 Page 6 of 13 22. Defendants Scott Farrell, Sr. and Kathleen Farrell were negligent, grossly negligent, and reckless as follows: a. failing to supervise or failing to adequately supervise Defendant Scott Farrell, Jr. with whom they had a special relationship; b. failing to warn the Minor -Plaintiff or her parents of the risk of harm posed by Defen.dant Scott Farrell, Jr,; c. permitting the harmful acts of Defendant Scott Farrell. Jr. to take place andlor continue; failing to make reasonably safe the property which they possessed and/or controlled; e. violation of duties unposed under Pennsylvania l.aw, Section 314A(3) & (4) of the Restatement (Second) of Torts because Defendants Scott Farrell, S`r. and Kathleen Farrell, were possessors of land who held it open to the public; .in:cludingMinor-Plaintiff, and, as such owed a duty of reasonable protection to Minor -Plaintiff which they violated by failing to make safe the property or provide warnings to Minor -Plaintiff and/or Minor - Plaintiffs parents after having knowledge of the dangerous propensities and tendencies of Defendant Scott Farrell, Jr.; f violation of duties imposed ander Pennsylvania law, Section 311 of the Restatement (Second) of Torts because Defendants Scott Farrell, Sr. and Case 1:13-cv-02724-YK Document 1-2 Filed 11/06/13 Page 7 of 13 g. Kathleen Farrell Rave false information to J.G. and S.G. regarding the nature of their minor son's relationship with E.G., and J.G. and S.G. relied on this information and E.G. was harmed as a result of this reliance. violation of duties imposed under Pennsylvania law, Section 31.5(a) & b) of the Restatement (Second) of Torts; h. violation of duties imposed under Pennsylvania law, Section 316 of the Restatement (Second) of Torts because Defendants Scott Farrell, Sr. and Kathleen Farrell are the parents of Scott Farrell, Jr. and they were under a duty to exercise•reasonable care so as to prevent their minor son from intentionally harming Minor -Plaintiff since they knew or had reason to know that they had the ability to control their minor son, and they knew or should know of the necessity and opportunity for exercising such control; violation of duties imposed under Pennsylvania law, Section 318 of the Restatement (Second) ofTorts because Defendants Scott Farrell, Sr. and Kathleen Farrell were possessors of land who permitted a third person, Defendant Scott Farrell, Jr., to conduct an activity on the land and failed to exercise reasonable care to'prcvent him from creating an unreasonable risk of bodily harm to the Minor-Plaintiffwhen these defendants knew or should have known of their ability to control their minor son and knew of the need and opportunity to exercise control over him; Case 1:13-cv-02724-YK Document 1-2 Filed 11/06/13 Page 8 of 13 violation of duties imposed under Pennsylvania law, Section 319 of the Restatement (Second) of Torts because Defendants Scott Farrell, Sr. and Kathleen 'Farrell had charge of Defendant Scott Farrell, Jr. and knew or should have known that he was likely to cause bodily harm to others, and specifically to Minor -Plaintiff, and did not exercise reasonable care to control then -minor son from harming Minor -Plaintiff; violation of duties imposed under Pennsylvania law, Section 320 of the Restatement (Second) of Torts becauseDefendants Scott Farrell Sr. and Kathleen Farrell voluntarily took custody of Minor-Plaintiffat their residence and subjected her to association with their minor son and knew or had reason to know that they had the ability to control the conduct of their minor son and knew or should have known the necessity and opportunity for exercising such control. violation of duties imposed under Pennsylvania law, Section 324A of the Restatement (Second) of Torts by having increased the risk of harm of injury to Plaintiff after having assumed the obligation to provide services to all Plaintiffs to care for and watch Minor -Plaintiff while she was at their residence; which was necessary for the protection of Minor -Plaintiff. allowing the Minor -Plaintiff to be in the company of Defendant Scott Farrell, Jr., when they knew or should have known and foreseen that based on his propensities towards young girls that he was a danger and threat to the Minor -Plaintiff and was likely to cause her harm; Case 1:13-cv-02724-YK Document 1-2 Filed 11/06/13 Page 9 of 13 n. failing to take any precautions whatsoever to give protection and safety to Minor -Plaintiff from the dangerous propensities of Defendant Scott Farrell, Jr., of which they had notice and knowledge, actual or constructive; o. failing to want Minor -Plaintiff that activity engaged in by Defendant Scott Farrell, Jr., would be of a harmful nature to Minor -Plaintiff and have traumatic effects on her in the future; P. q. permitting Minor-Plaintiffto enter or remain on their property when they knew or should have known that while Minor -Plaintiff remained on the property she was at risk to be harmed by Defendant Scott Farrell, Jr.; negligent supervision of the property; r. violation. of duties imposed under Pennsylvania law, Section 341 and 341A of the Restatement (Second) of Torts; s. violation of duties imposed under Pennsylvania law, Section. 448 of the Restatement (Second) of Torts; t. failing to take reasonable and necessary steps to rescue Minor -Plaintiff after placing her in a perilous position; u. failing to exercise reasonable care to prevent further harm after rendering Minor -Plaintiff in danger of further harm; Case 1:13-cv-02724-YK Document 1-2 Filed 11/06/13 Page 11 of 13 26. Defendant Scott Farrell, Jr., mistakenly concluded the Minor -Plaintiff consented to sexual contact. 27. At all times relevant, Minor -Plaintiff -did not consent to sexual contact with Scott Farrell, Jr. 28. A reasonable person in Defendant Scott Farrell, jr.'s position should have realized that Minor -Plaintiff, a twelve year old girl, did not consent to sexual touching. WHEREFORE, Plaintiffs claim clairn ofthe Defendants, jointly and severally,damages in excess of the mandatory arbitration limits, in addition to other fees, costs, and interest as permitted by the law. Date: Respectfully submitted, By: Benjamin. D. Andreozzi PA# 89271 Andreozzi & Associates, P.C. 215 Pine Street, Suite 200 Harrisburg, PA 17101 p: 717.525.9142 f: 717.525.9143 Counsel for Plaintiffs Case 1:13-cv-02724-YK Document 1-2 Filed 11/06/13 Page 12 of 13 VERIFICATION 1, Benjamin D. Andreozzi, Esquire, Attorney for Plaintiffs E.G., J.G. and S.G., verify that the statements made in the foregoing Amended Complaint are true and correct to the best of my knowledge, information and belief. 1 understand that false statements herein are made subject to the penalties of 18 Pa. C.S. §4904, relating to unsworn falsification to authorities. Date: ANDREOZZI & ASSOCIATES, P.C. By: Benjamin D. Andreozzi Attorney ID 489271. 215 .Pule. St., Ste. 200 Harrisburg, PA 17101 (717) 525-9124 Counse-1 for Petitioner PRAECIPE FOR LISTING CASE FOR ARGUMENT (Must be typewritten and submitted in triplicate) TO THE PROTHONOTARY OF CUMBERLAND COUNTY: (List the within matter for the next Argument Court.) MOTORISTS MUTUAL INSURANCE COMPANY Plaintiff, v. SCOTT FARRELL, SR., and KATHLEEN FARRELL and SCOTT FARRELL, JR. and E. G., a minor, by J. G. and S. G., her parents and natural guardians. Defendants. COURT OF COMMON PLEAS CUMBERLAND COUNTY -0 3 r CIVIL ACTION NO.: 14-18! N � r <c) -v Date: 1. State matter to be argued (i.e., plaintiff's motion for new trial, defendant's demurrer to complaint, etc.): Motion for Judgment on the Pleadings 2. Identify all counsel who will argue cases: (a) for plaintiffs: Charles L. McNabb, Esquire, Hohn & Scheuerle, 1700 Market Street, Suite 3242, Philadelphia, PA 19103 (b) for defendants: Benjamin D. Andreozzi, Esquire, Andreozzi & Associates, P.C., 215 Pine Street, Suite 200, Harrisburg, PA 17101 Thomas E. Brennan, Esquire, Goldberg, Katzman, P.C., 4250 Crums Mill Road, Suite 301, Harrisburg, PA 17112 3. I will notify all parties in writing within two days that this case has been listed for argument. 4. Argument Court Date: Signature gcatio Print your name 414.15 Pb AT'I 38088 e,* 310159 Attorney for Plaintiff MOTORISTS MUTUAL INSURANCE : COURT OF COMMON PLEAS OF COMPANY, : CUMBERLAND COUNTY, PENNSYLVANIA PLAINTIFF v. SCOTT FARRELL, SR., and KATHLEEN FARRELL and SCOTT FARRELL, JR., and E.G., a minor, by J.G. and S.G., her parents and natural guardians, DEFENDANTS : 14-1818 CIVIL TERM IN RE: PLAINTIFF'S MOTION FOR JUDGMENT ON THE PLEADINGS BEFORE GUIDO, J., AND MASLAND, J. ORDER OF COURT AND NOW, this O day of December, 2014, upon consideration of the Motion for Judgment on the Pleadings, the response thereto, briefing by the parties, and argument en banc, the Motion is GRANTED in part and DENIED in part as follows: (1) the Insurance Policy exclusion for bodily injury expected or intended by one or more insureds does not, at this time, provide a basis for Motorists Mutual Insurance Company to refuse to defend or indemnify Scott Farrell, Jr., Scott Farrell, Sr., or Kathleen Farrell, for the claims against them raised by E.G. in the underlying Amended Complaint; (2) the Insurance Policy exclusion for bodily injuries arising out of sexual molestation provides Motorists Mutual Insurance Company a basis for the denial of the defense or indemnification of Scott Farrell, Jr. for the claim against him raised by E.G. in the underlying Amended Complaint, and we DECLARE Motorists Mutual Insurance Company has no such duty of defense or indemnification as to Scott Farrell, Jr., and; 14-1818 CIVIL TERM (3) the Insurance Policy exclusion for bodily injuries arising out of sexual molestation does not provide Motorists Mutual Insurance Company a basis for the denial of the defense or indemnification of Scott Farrell, Sr. or Kathleen Farrell to the claim against them raised by E.G. in the underlying Amended Complaint, and we DECLARE Motorists Mutual Insurance Company has a continuing obligation to defense and indemnification as to Scott Farrell, Sr. and Kathleen Farrell in the underlying litigation. Charles L. McNabb, Esquire For Plaintiff Thomas E. Brenner, Esquire For Scott Farrell, Sr., and Kathleen Farrell and Scott Farrell, Jr. Benjamin D. Andreozzi, Esquire For E.G., a minor, by J.G. and S.G., her parents and natural guardians -2- By the Court, MOTORISTS MUTUAL INSURANCE : COURT OF COMMON PLEAS OF COMPANY, : CUMBERLAND COUNTY, PENNSYLVANIA PLAINTIFF v. SCOTT FARRELL, SR., and KATHLEEN FARRELL and SCOTT FARRELL, JR., and E.G., a minor, by J.G. and S.G., her parents and natural guardians, DEFENDANTS : 14-1818 CIVIL TERM IN RE: PLAINTIFF'S MOTION FOR JUDGMENT ON THE PLEADINGS BEFORE GUIDO, J., AND MASLAND, J. OPINION AND ORDER OF COURT Masland, J., December 30, 2014: -- Before the court is the Motion for Judgment on the Pleadings filed by Plaintiff, Motorists Mutual Insurance Company, in its Declaratory Judgment action against Defendants, Scott Farrell, Sr., and Kathleen Farrell, and Scott Farrell, Jr., and E.G., a minor, by J.G. and S.G., her parents and natural Guardians. After briefing and argument, we will grant the Motion in part and deny the Motion in part. In short, our order declares that Motorists Mutual has no duty to defend or indemnify Scott Farrell, Jr. on the basis that E.G.'s claim against him arises from sexual molestation, but Motorists Mutual does have a continuing duty to defend and indemnify Scott Farrell, Sr. and Kathleen Farrell, as the claim against them arises from their negligence rather than from sexual molestation. 14-1818 CIVIL TERM I. Procedural History Motorists Mutual filed this Declaratory Judgment action to determine whether the Homeowner's Insurance policy it provided to the Farrell family will provide coverage to for the underlying suit between the family of E.G. and the Farrells. Count I of the underlying Amended Complaint alleges Negligence on the part of Defendants Scott Farrell, Sr. and Kathleen Farrell for failing to appropriately supervise their sixteen year old son in their home thereby permitting him to engage in inappropriate sexual activity with E.G. who was twelve years old at the time. Count II of the underlying Amended Complaint is styled as a Negligence claim against Scott Farrell, Jr. for his alleged failure to realize that a twelve year old girl could not consent to sexual activity. Upon receiving notice of the underlying Complaint, Motorists Mutual, the Farrells' Homeowner's Insurance provider, notified the Farrells that it would be providing for the family's defense subject to a reservation. Subsequently, Motorists Mutual filed the instant Declaratory Judgment action seeking a declaration that it had no duty to defend or indemnify the claims against the Farrells on the bases that (1) the Homeowner's Insurance policy explicitly excluded coverage for bodily injury expected or intended by the insured, and (2) the policy explicitly excluded coverage for bodily injury arising out of sexual molestation. II. Discussion A. Standard of Review Motorists Mutual moves for judgment on the pleadings pursuant to Rule 1034(a). For the purposes of a motion for judgment on the pleadings, we limit our consideration to the pleadings and relevant documents, accepting as true all well -pleaded facts. -2- 14-1818 CIVIL TERM Wachovia v. Ferretti, 935 A.2d 565, 570 (Pa. Super. 2007). Similar to a demurrer, we may only enter judgment on the pleadings when there are no disputed factual issues and the moving party is entitled to judgment as a matter of law. Id. In reviewing an insurance contract, we must ascertain the intent of the parties as manifested by the terms used in the written insurance policy. Donegal Mut. Ins. Co. v. Baumhammers, 938 A.2d 286, 290 (Pa. 2007). "When the language of the policy is clear and unambiguous, we must give effect to that language." Kvaerner Metals Div. of Kvaemer U.S., Inc. v. Commercial Union Ins. Co., 908 A.2d 888, 897 (Pa. 2006). "However, when a provision in the policy is ambiguous, the policy is to be construed in favor of the insured to further the contract's prime purpose of indemnification and against the insurer, as the insurer drafts the policy and controls coverage." Donegal Mut. Ins. Co., 938 A.2d at 290. B. Policy Exclusions With those principles in mind, we turn to the interpretation of the Policy and its subsequent amendments. The Policy provides, in relevant part, that it does not provide coverage for bodily injury "[w]hich is expected or intended by one or more insureds" or "[a]rising out of sexual molestation, corporal punishment or physical or mental abuse ...." Pl.'s Ex. B. Motorists Mutual Insurance Company Insurance Policy Number 0391- 71-698102-70 at 13-14; as amended by Special Provisions — Pennsylvania HO 7137 (08-10) at 5. The Policy also provides, "Severability of Insurance. This insurance applies separately to each 'insured.' This condition will not increase our limit of liability for any one 'occurrence."' Id. at 17. -3- 14-1818 CIVIL TERM Motorists Mutual contends that the two aforementioned coverage exclusions excuse them from indemnifying or defending the Farrells from the claims raised in the underlying Amended Complaint. First, the company argues that the exclusion for bodily injury intended or expected by one or more insureds operates to deny coverage as to all parties, because, regardless of his subjective intent, Scott Farrell, Jr.'s actions constituted the sexual molestation of a child and his intent to harm should be inferred as a matter of law. Motorists Mutual further argues that due to the policy language of "one or more `insureds" Scott Farrell, Jr.'s inferred intent to cause bodily harm serves as a basis do deny coverage as to Scott Farrell, Sr. and Kathleen Ferrell, as well as to him. Motorists Mutual provides a second basis to deny coverage to the Farrells as the policy excludes coverage for bodily injury arising from sexual molestation. As to Scott Farrell, Jr., they argue that it is of no moment that the claim against him is labeled "Negligence" in the Amended Complaint, as the facts pled clearly constitute criminal sexual molestation of a child. They also note that any suggestion that E.G. was a willing participant in the sexual activity is completely inappropriate as a twelve year old cannot, as a matter of law, consent to sexual activity with a sixteen year old. As to the parents, Motorists Mutual argues that but for the sexual molestation of E.G. at the heart of the underlying Amended Complaint, the claim for negligent supervision against the parents would never exist. Accordingly, the claim arises from sexual molestation and coverage should be denied. For their part, the Farrells respond that the exclusion for bodily injury expected or intended by one or more insureds is inapplicable as both claims in the underlying Amended Complaint sound in negligence rather than as intentional torts. They also -4- 14-1818 CIVIL TERM argue Scott Farrell, Jr. never intended any harm to E.G. as he mistakenly believed she consented to sexual activity. They further note that the so-called inferred intent rule has not been extended in Pennsylvania to apply to the conduct of a minor tortfeasor and that other jurisdictions are split on that issue. The Farrells also argue the policy exclusion for bodily injuries arising from sexual molestation is inapplicable as to their son because he believed E.G. consented to the sexual activity. On that basis they ask us to deny the Motion for Judgment on the Pleadings, as the precise nature of the relationship between Scott Farrell, Jr. and E.G. remains an outstanding factual issue that has yet to be resolved. They also contend that policy exclusion is inapplicable to the claim against them for negligent supervision, as the alleged acts and omissions giving rise to their liability do not themselves constitute sexual molestation. 1. Intentional Bodily Injury Motorists Mutual contends that regardless of Scott Farrell, Jr.'s alleged motivation for his sexual activity with E.G., the injuries she suffered are intentional as a matter of law. We disagree. Pennsylvania recognizes the Inferred Intent rule in liability insurance cases involving the sexual abuse of a child by an insured adult. Aetna Casualty & Sur. Co. v. Roe, 650 A.2d 94 (Pa. Super. 1994). The Rule provides that where an adult sexually abuses a child, the adult's intent to cause harm is established as an irrebuttable presumption as a matter of law. Id. at 102. Motorists Mutual asks us to extend this presumption to the instant case where there is sexual abuse of a child by an insured minor. -5- 14-1818 CIVIL TERM We recognize that some of the reasoning behind the Inferred Intent rule would support its application to the conduct of Scott Farrell, Jr.'s behavior, in that the "harm to children in sexual molestation cases is inherent in the very act of sexual assault committed on a child, regardless of the motivation for or nature of such assault ...." Id. We also note, however, that the sexual experience and awareness of consequences imputed to an adult may not necessarily be appropriately applied to a minor. This remains an open question of Pennsylvania law and absent direction from our appellate courts we decline to extend the Inferred Intent rule beyond its established boundaries. Accordingly, for the purposes of determining insurance coverage, we will not infer the intent to cause harm to Scott Farrell's sexual activity with E.G. For that reason, we find that the policy exclusion for bodily injuries expected or intended by one or more insureds will not serve as a basis for a denial of coverage absent evidence that Scott Farrell, Jr., had the subjective intent or expectation to cause bodily harm to E.G.' 2. Arising Out of Sexual Molestation We next turn to Motorists Mutual's alternative basis for denying coverage, the policy exclusion for bodily injuries "[a]rising out of sexual molestation, corporal punishment or physical or mental abuse ...." Motorists Mutual argues this exclusion permits them to deny coverage for both the claim against Scott Farrell, Jr. and the negligent supervision claim against his parents, because, but for their son's sexual molestation of E.G., the claim against the parents would not exist. 1 Motorists Mutual argues that any evidence of E.G.'s alleged consent to sexual activity is irrelevant as she was only twelve years old and legally incapable of consent. They quote our Supreme Court's holding that "consent is not an available defense in civil proceedings arising from sexual contact with a minor under 13 years of age ...." C.C.H. v. Phila. Phillies, Inc., 940 A.2d 336, 349 (Pa. 2008). We acknowledge that decision and note that evidence of E.G.'s alleged consent to sexual activity will not be allowed to be introduced in any trial of the underlying claims. However, we find that it is relevant as to the threshold question of whether Motorists Mutual may deny coverage due to injuries intended or expected by Scott Farrell, Jr. -6- 14-1818 CIVIL TERM First, we find that the clear language of this policy exclusion permits Motorists Mutual to deny coverage for E.G.'s claim against Scott Farrell, Jr. The harm alleged in the underlying Complaint is clearly a result of Scott Farrell, Jr.'s breach of "a duty which required that he not physically molest or sexually assault [E.G.]." Am. Compl. at ¶25. Accordingly, as pled, Motorists Mutual has no duty to defend or indemnify Scott Farrell, Jr. in the underlying litigation. Next, we turn to whether this policy exclusion also serves as a basis to deny coverage for the claim against Scott Farrell, Sr. and Kathleen Farrell. Our review of the cases cited by the parties reveals some disagreement among Pennsylvania state and federal courts on whether an exclusion for bodily injuries arising out of sexual molestation precludes coverage for the third parties who failed to adequately supervise the perpetrator of the underlying sexual molestation. A representative case of those finding no coverage is Nationwide Mut. Fire Ins. Co. v. Mr. K., 2005 U.S. Dist. LEXIS 32573, 2005 WL 3434081 (W.D. Pa. Dec. 13, 2005). There, the underlying complaint arose from the alleged sexual harassment perpetrated by the insureds' minor child of another minor that resulted in mental, emotional, and financial harm to the minor victim and her family. Id. at 2. The alleged victim's family sued the alleged minor perpetrator and the perpetrator's parents on the bases that the minor perpetrator was negligent in failing to stop sexually harassing the victim and that the minor's parents were negligent in failing to appropriately train their child not to harass peers. Id. The insurance company sought to avoid defense or indemnification of any of the insureds on the basis that the relevant insurance policy excluded from coverage bodily -7- 14-1818 CIVIL TERM injuries "resulting from acts or omissions relating directly or indirectly to sexual molestation, physical or mental abuse, harassment, including sexual harassment, whether actual, alleged or threatened." Id. at 6. The District Court agreed with the insurance company and granted summary judgment in its favor as to all claims. The court reasoned, The exclusion focuses upon the nature of the injuries suffered - not upon the theory of liability being pursued. Here, all the injuries suffered by K.R. and her parents resulted, either directly or indirectly, from the sexual harassment. Indeed, the sexual harassment is the motivating factor for the claims. But for T.K.'s alleged harassment of K.R., the R family would not be pursuing any claims against the K family. Id. (emphasis added). In reaching this conclusion the District Court noted several courts in other jurisdictions reaching a similar result, but also acknowledged and explicitly disagreed with an Eighth Circuit Court of Appeals decision finding coverage for homeowners accused of failing to adequately supervise children who were the victims of sexual molestation in their home. Id. at 9-10. In St. Paul Fire & Marine Insurance Co. v. Schrum, 149 F.3d 878 (8th Cir. 1998), the court held that a policy exclusion for bodily injuries "arising out of any sexual act, including but not limited to molestation, incest or rape" did not excuse the insurance company from defending and indemnifying the homeowners in a negligent supervision action. The court reasoned: [The perpetrator of sexual molestation's] alleged conduct is merely incidental to the [victims' family's] negligence claim against the [homeowners]. The [victims' family] contend[s] that the [homeowners] were negligent in failing to properly supervise and control the [child victims of sexual molestation], thereby affording [the perpetrator of sexual -8- 14-1818 CIVIL TERM molestation] the opportunity to harm them. "On these facts, these allegations contain separate and non -excluded causes of [the children's] injuries, apart from the [accompanying sexual act]." Id. at 881. Thus, because the actions giving rise to the homeowners' potential liability were not themselves acts of sexual molestation, but rather were acts and omissions that provided the opportunity for sexual molestation to occur, the policy exclusion did not permit the insurance company to deny coverage to the homeowners. After careful review, we reach the same conclusion here. Initially, we note that "decisions of the federal district courts and courts of appeal, including those of the Third Circuit Court of Appeals, are not binding on Pennsylvania courts ...." Martin v. Hale Products, Inc., 699 A.2d 1283, 1287 (Pa. Super. 1997). "Although decisions of the federal courts lower than the United States Supreme Court possess a persuasive authority, a federal court's interpretation of state law does not bind state courts." In re Insurance Stacking Litig., 754 A.2d 702, 705 n.6 (Pa. Super. 2000). With those principles in mind, we turn to the Pennsylvania case that we find persuasive in the instant matter. In Board of Pub. Educ. of the Sch. Dist. v. National Union Fire Ins. Co., 709 A.2d 910 (Pa. Super. 1998), a civil rights complaint was filed on behalf of a minor student who had been sexually molested by an officer of the district's Parent-Teacher Organization (PTO), alleging: [T]he Board of Education failed to screen persons they knew would have access to young students and failed to implement procedures, policies, or background checks of those in contact with students to facilitate discovery of any criminal history of sexual abuse of children. The complaint also alleged the School District failed to train, instruct or -9- 14-1818 CIVIL TERM inform its teachers, administrators and employees not to permit unsupervised contact between students and unscreened [Parent Teacher Organization] volunteers .... Id. at 913. The District's insurance carrier denied coverage for the claim and refused to defend the District based on the following language in the liability policy: This policy does not apply: to any claim involving allegations of ... criminal acts ... to any claims arising out of ... (3) assault or battery .... to any claim arising out of bodily injury to ... any person .... Id. at 912. Our Supreme Court ultimately held the denial of coverage was inappropriate as the negligence claims against the District did not themselves arise out of the underlying assault or battery of the minor student, but rather the claims arose from the District's acts and omissions committed in failing to adequately supervise its PTO officer who would then go on to sexually molest a minor student. Id. at 916. The Court reasoned that where it is alleged that negligence allowed a crime to occur, the claim against the negligent party arises from the negligence, not from the criminality. Id. We reach the same result here. E.G.'s claim against Scott Farrell, Sr. and Kathleen Farrell arises from an alleged pattern of behavior that allowed Scott Farrell, Jr. to sexually molest E.G., including failing to supervise the children in their home and permitting them to spend time alone together when they should have known that the relationship between the two was inappropriate. As alleged in the Amended Complaint, those acts and omissions do not themselves arise out of sexual molestation, but rather, negligently permitted it to occur. Accordingly, we declare that Motorists Mutual has a duty to defend and indemnify Scott -10- 14-1818 CIVIL TERM Farrell, Sr. and Kathleen Farrell against E.G.'s claim against them for Negligent Supervision. III. Conclusion In sum, we reach the following conclusions: (1) the Insurance Policy exclusion for bodily injury expected or intended by one or more insureds does not, at this time, provide a basis for the denial of the defense or indemnification of Scott Farrell, Jr., Scott Farrell, Sr., or Kathleen Farrell, to the claims against them raised by E.G. in the underlying Amended Complaint; (2) the Insurance Policy exclusion for bodily injuries arising out of sexual molestation provides a basis for the denial of the defense or indemnification of Scott Farrell, Jr. to the claim against him raised by E.G. in the underlying Amended Complaint; (3) the Insurance Policy exclusion for bodily injuries arising out of sexual molestation does not provide a basis for the denial of the defense or indemnification of Scott Farrell, Sr. or Kathleen Farrell to the claim against them raised by E.G. in the underlying Amended Complaint. ORDER OF COURT AND NOW, this yo day of December, 2014, upon consideration of the Motion for Judgment on the Pleadings, the response thereto, briefing by the parties, and argument en banc, the Motion is GRANTED in part and DENIED in part as follows: (1) the Insurance Policy exclusion for bodily injury expected or intended by one or more insureds does not, at this time, provide a basis for Motorists Mutual Insurance Company to refuse to defend or indemnify Scott Farrell, Jr., Scott Farrell, Sr., or Kathleen Farrell, for the claims against them raised by E.G. in the underlying Amended Complaint; -11- 14-1818 CIVIL TERM (2) the Insurance Policy exclusion for bodily injuries arising out of sexual molestation provides Motorists Mutual Insurance Company a basis for the denial of the defense or indemnification of Scott Farrell, Jr. for the claim against him raised by E.G. in the underlying Amended Complaint, and we DECLARE Motorists Mutual Insurance Company has no such duty of defense or indemnification as to Scott Farrell, Jr., and; (3) the Insurance Policy exclusion for bodily injuries arising out of sexual molestation does not provide Motorists Mutual Insurance Company a basis for the denial of the defense or indemnification of Scott Farrell, Sr. or Kathleen Farrell to the claim against them raised by E.G. in the underlying Amended Complaint, and we DECLARE Motorists Mutual Insurance Company has a continuing obligation to defense and indemnification as to Scott Farrell, Sr. and Kathleen Farrell in the underlying litigation. Charles L. McNabb, Esquire For Plaintiff Thomas E. Brenner, Esquire For Scott Farrell, Sr., and Kathleen Farrell and Scott Farrell, Jr. Benjamin D. Andreozzi, Esquire For E.G., a minor, by J.G. and S.G., her parents and natural guardians -12- By the Court, Albert H. Masland, J.