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HomeMy WebLinkAbout02-2561Commonwealth of Pennsylvania County of Cumberland LARRY LIEBRUM AND BARBARA LIEBRUM, HIS WIFE 3 TEE JAY DRIVE MT. HOLLY SPRINGS, PA 17065. vs CGU INSURANCE 100 CORPORATE CENTER DRIVE CAMP HILL, PA 17011 Plaintiff Defendants In the Court of Common Pleas of Cumberland County Pennsylvania No. --d~-~/Civil Term Civil Action Law Jury Trial Demanded Praecipe for a writ of summons TO THE PROTHONOTARY OF SAID COURT: Please issue a writ of summons in a civil action against the within defendant. Date: MAY 23, 2002 ~ini~m~-"~. Voh~ia; Attorney for Plaintiff Commonwealth of Pennsylvania County of Cumberland Larry Lebrium and Barbara Liebrum h/w Plaintiffs In the Court of Common Pleas of Cumberland County, Pennsylvania vs No. 02 -- o~(~ ! Civil Term CGU Insurance 100 Corporate Center Drive Camp Hill, PA 17011 Defendant Civil action law Jury Trial Demanded Writ of Summons To: CGU Insurance 100 Corporate Center Drive Camp Hill PA 17011 You are hereby notified that Lary Liebrum and Barbara Liebrum have brought an action aga~t you. r Deputy Prb&ohotary date: May 24, 2002 SHERIFF'S RETURN - REGULAR CASE NO: 2002-02561 P COMMONWEALTH OF PENNSYLVANIA COUNTY OF CUMBERLkND LIEBRUM LARRY ET AL VS CGU INSURANCE ROBERT BITNER , Sheriff or Deputy Sheriff of Cumberland County, Pennsylvania, who being duly sworn according to law, says, the within WRIT OF SUMMONS was served upon CGU INSURANCE the DEFENDANT , at 1000:00 HOURS, on the 30th day of May at 100 CORPORATE CENTER DRIVE , 2002 CAMP HILL, PA 17011 by handing to SUE LEITZEL, CLAIM MANAGER a true and attested copy of WRIT OF SUMMONS together with and at the same time directing Her attention to the contents thereof. Sheriff's Costs: Docketing 18.00 Service 10.35 Affidavit .00 Surcharge 10.00 .00 38.35 Sworn and Subscribed to before me this /~ day of  ~ ~ A. D r tYrothonot ary So Answers: R. Thomas Kline 05/31/2002 DOUGLAS DOUGLAS DOUGLAS Deputy Sheriff LARRY LIEBRIUM and BARBARA LIEBRUM, Plaintiffs CGU INSURANCE, Defendant IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW NO. 02-2561 PRAEClPE FOR ENTRY OF APPEARANCE TO THE PROTHONATARY: Please enter the appearance of David L. Schwalm, Esquire, and the law firm of Thomas, Thomas & Hafer, LLP as attorneys for Defendant CGU Insurance in the above captioned matter. THOMAS, THOMAS & HAFER, LLP David L. Schwalm, Esquire I.D. Number: 32574 305 North Front Street P.O. Box 999 Harrisburg, PA 17108-0999 (717) 255-7643 DATED: July 30, 2002 CERTIFICATE OF SERVICE I, David L. Schwalm, Esquire, of the law firm of Thomas, Thomas & Hafer, LLP, attorney for Plaintiff, do hereby certify that on this date I served the foregoing Praecipe for Entry of Appearance by placing a true and correct copy of the same in the United States certified mail, postage prepaid, at Harrisburg, Pennsylvania, addressed to: William Patrick Douglas, Esquire 27 W. High Street P.O. Box 261 Carlisle, PA 17013-0261 DATED: July 30, 2002 THOMAS, THOMAS & HAFER, LLP David L. Schwalm, Esquire I.D. No. 32574 305 North Front Street P.O. Box 999 Harrisburg, PA 17108-0999 (717) 255-7643 Attorneys for Plaintiff LARRY LIEBRIUM and BARBARA LIEBRUM, Plaintiffs CGU INSURANCE, Defendant IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW NO. 02-2561 PRAECIPE FOR RULE TO FILE COMPLAINT TO THE PROTHONATARY: Please issue a Rule upon Plaintiffs to file a complaint in the above matter within twenty (20) days after service of the Rule or suffer the entry of judgment of non pros. THOMAS, THOMAS & HAFER, LLP David L. Schwalm, Esquire I.D. Number: 32574 305 North Front Street P.O. Box 999 Harrisburg, PA 17108-0999 (717) 255-7643 DATED: July 30, 2002 LARRY LIEBRIUM and BARBARA LIEBRUM, Plaintiffs CGU INSURANCE, Defendant IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW NO. 02-2561 RULE TO FILE A COMPLAINT AND, NOW, this..~LS"~day of J~ , 2002, a Rule was hereby / granted upon Plaintiffs to file a complaint with twenty (20) days after service hereof or suffer the entry of a judgment of non pros. CERTIFICATE OF SERVICF I, David L. Schwalm, Esquire, of the law firm of Thomas, Thomas & Hafer, LLP, attorney for Plaintiff, do hereby certify that on this date I served the foregoing Praecipe for Rule to File Complaint by placing a true and correct copy of the same in the United States certified mail, postage prepaid, at Harrisburg, Pennsylvania, addressed to: William Patrick Douglas, Esquire 27 W. High Street P.O. Box 261 Carlisle, PA 17013-0261 DATED: July 30, 2002 THOMAS, THOMAS & HAFER, LLP David L. Schwa~, Esquire I.D. No. 32574 305 North Front Street P.O. Box 999 Harrisburg, PA 17108-0999 (717) 255-7643 Attomeys for Plaintiff DOUGLAS, DOUGLAS & DOUGLAS 27 W. HIGH ST. POB ~1 CARLISLE PA 17013 TELEPHONE 717-243-1790 Larry Liebrum and Barbara Liebrum h/w Plaintiffs WILLIAM P. DOUGLAS, ESQ. Supreme Court I.D.# 37926 In the Court of Common Pleas of Cumberland County, Pennsylvania vs No. 02 --2561 Civil Tei,. CGU Insurance 100 Corporate Center Drive Camp Hill, PA 17011 Defendant Civil action law Jury Trial Demanded NOTICE 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 DAYS AFFER 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. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. Cumberland County Bar Association 2 Liberty Square Carlisle PA 17013 717-249-3166 DATE: August 19, 2002 o o Complaint The plaintiff, Lar£y Leibrum and Barbara Liebrum, are adult individuals residing at 3 Tee Jay Drive, Mt. Holly Springs, Cumberland County, Pennsylvania. The Defendant, CGU Insurance, is a corporation licensed to do business in the Commonwealth of Pennsylvania, with a claims office located at 100 Corporate Center Drive, Camp Hill, Cumberland County, Pennsylvania. On April 20, 2001, the plaintiffs suffered a partial collapse in their home. There was a policy of insurance in effect at the time of the loss with CGU Insurance Company. The contract provided for payment of loss caused by partial collapse. As a result of the aforesaid loss the plaintiffs have incurred expense to correct the damage caused by the loss. CGU Insurance wrongfully refused to pay for loss in accordance with the terms of their policy. CGU Insurance has frivolously and with no proper foundation for their actions refused to pay proceeds under their policy of insurance and provide medical benefits in accordance with the terms of the policy. The bad faith conduct of CGU Insurance gives rise to a cause of action pursuant to 42 Pa. C.$.A. §8371. The defendant failed to promptly and completely investigate all claims arising under the aforementioned contract of insurance, by reason of the aforesaid incident. 10. 11. The defendant did not act in good faith to effectuate prompt, fair and equitable resolution of claims, knowing that liability was clear and coverage applies, and as a result, the plaintiff has been forced to incur expense to protect their interests. The defendant failed to promptly provide a factually sound explanation for the basis of denial in the insurance policy in relation to the facts or applicable law for denial of the claim. 12. The defendant has willfully, maliciously and/or recklessly withheld benefits from the plaintiff, due to its failure to investigate the claim thoroughly which constitutes a breach of an implied covenant. 13. The defendant, in bad faith, has denied payment on behalf of its insured without a sound legal basis for its denial and in not fully inquiring into the possible basis which might support the insured's claim of coverage. 14. CGU Insurance has deliberately acted in conscious disregard and with indifference to the fights of their insured. 15. 16. 17. The defendant impliedly and/or expressly warranted that it would, in good faith, provide insurance coverage to Larry Leibrum and Barbara Liebrum in accordance with the contract and abide by the terii-~s of said contract. As a result of the aforesaid, the defendant breached its contract and/or warranty, which breach resulted in loss to the plaintiff, including aggravation, inconvenience and emotional distress. The plaintiff hereby requests all remedial relief as provided in 42 Pa. C.S.A. §8371 and payment in full of all past and future reasonable and necessary expenses arising from the loss. Wherefore it is prayed that judgment be entered in favor of the plaintij~ and against the defendant in an amount in excess oJ: that requiring compulsory referral to arbitration. A jury trial is hereby demanded. August 19, 2002 Respect~ly submitted, William p. D0-ugl~s, Esq. Attorney for P~ntiff AFFIDAVIT I hereby swear or affirm that the foregoing is true and correct to the best of my knowledge and/or information and belief. This is made subject to the penalties of 18 pa.C.S.Section 4904 relating to unswom falsification to authorities. David L. Schwalm, Esq., Esquire Identification Number: 32574 Thomas, Thomas 8, Haler, LLP 305 N. Front Street P.O. Box 999 Harrisburg, PA 17108-0999 (717) 255-7643 Counsel for Defendant LARRY LIEBRIUM and BARBARA LIEBRUM, Plaintiffs CGU INSURANCE, Defendant IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW NO. 02-2561 NOTICE TO PLEAD You are hereby notified to plead to the enclosed New Matter within twenty (20) days of service hereof or the relief requested may be entered against you. Date: October 2, 2002 THOMAS, THOMAS & HAFER, LLP David L. Schwalm, Esquire I.D. Number: 32574 305 North Front Street P.O. Box 999 Harrisburg, PA 17108-0999 (717) 255-7643 David L. Schwalm, Esq., Esquire Identification Number: 32574 Thomas, Thomas & Hafer, LLP 305 N. Front Street P.O. Box 999 Harrisburg, PA 17108-0999 (717) 255-7643 Counsel for Defendant LARRY LIEBRIUM and BARBARA LIEBRUM, Plaintiffs CGU INSURANCE, Defendant IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA ANSWER AND NEW MATTER CIVIL ACTION - LAW NO. 02-2561 AND NOW, Defendant Pennsylvania General Insurance Company, incorrectly identified as CGU Insurance, by and through its attorneys, Thomas, Thomas & Hafer, LLP, files this Answer and New Matter to Plaintiff's Complaint, and in support thereof aver the following: 1. Admitted. 2. Denied as stated. Pennsylvania General Insurance Company issued Plaintiffs a Homeowners insurance policy and CGU Insurance is incorrectly designated as the Defendant. 3. Denied pursuant to Pa.R.C.P. 1029(e). The averments are further denied to the extent that they constitute conclusions of law to which no response is required. It is specifically denied that Plaintiffs suffered any collapse of their home, partial or otherwise. 4. Denied. By way of further answer, it is admitted that Pennsylvania General Insurance Company issued Plaintiffs a Homeowners policy, policy number OP- SU20054, for the policy period January 22, 2001 to January 22, 2002, a copy of which is attached hereto as "Exhibit A." The policy is a written document, and speaks for itself. Defendant specifically denies that Plaintiffs sustained a loss covered by said policy 5. After reasonable investigation Defendant is without knowledge or information sufficient to form a belief as to the truth of the averment, and proof thereof is demanded. By way of further answer, Defendant specifically denies that Plaintiffs sustained a loss covered by said policy. 6. Denied pursuant to Pa.R.C.P. 1029(e). The averments are further denied to the extent that they constitute conclusions of law to which no response is required. By way of further answer, Defendant denies that its denial of coverage was wrongful or that Plaintiffs sustained a loss covered by said policy. 7. Denied pursuant to Pa.R.C.P. 1029(e). The averments are further denied to the extent that they constitute conclusions of law to which no response is required. By way of further answer, Defendant specifically denies that any benefits are payable under the policy, that it acted frivolously or without proper foundation, that any claim for medical benefits has been made under the policy, or that any benefits for medical benefits are due or payable under the policy. 8. Denied pursuant to Pa.R.C.P. 1029(e). The averments are further denied to the extent that they constitute conclusions of law to which no answer is required. By way of further answer, Defendant denies that it acted in bad faith, or that Plaintiffs have any cause of action under 42 Pa. C.$.A. §8371. 9. Denied pursuant to Pa.R.C.P. 1029(e). The averments are further denied to the extent that they constitute conclusions of law to which no response is required. By way of further answer, Defendant asserts that it promptly and completely investigated Plaintiffs' claim. 10. Denied pursuant to Pa.R.C.P. 1029(e). The averments are further denied to the extent that they constitute conclusions of law to which no response is required. By way of further answer, Defendant specifically denies that it did not act in good faith and that it has any liability under the policy. After reasonable investigation, Defendant is without knowledge or information sufficient to form a belief as to the truth of Plaintiff's averment that plaintiff has been forced to incur expenses to protect their interests and proof thereof is demanded. 11. Denied pursuant to Pa.R.C.P. 1029(e). The averments are further denied to the extent that they constitute conclusions of law to which no response is required. By way of further answer, Defendant provided Plaintiffs' with a prompt explanation in support of its denial of plaintiffs claim within twelve (12) days of the date of the loss. 12. Denied pursuant to Pa.R.C.P. 1029(e). The averments are further denied to the extent that they constitute conclusions of law to which no response is required. By way of further answer, Defendant denies that it acted maliciously and/or recklessly, that any benefits were due to Plaintiffs under the policy, or that it breached any implied covenant. Defendant further denies that it failed to thoroughly investigate the Plaintiffs' claim. 13. Denied pursuant to Pa.R.C.P. 1029(e). The averments are further denied to the extent that they constitute conclusions of law to which no response is required. By way of further answer, Defendant specifically denies that the denial of payment was proper, that coverage is provided under the policy, or that it did not fully inquire into Plaintiffs' claim of coverage. Defendant also denies that it acted in bad faith, and to the contrary asserts that Defendant has acted in good faith in all aspects of handling of Plaintiffs' claim. 14. Denied pursuant to Pa.R.C.P. 1029(e). The averments are further denied to the extent that they constitute conclusions of law to which no response is required. Defendant specifically denies that it acted in disregard or indifference to the rights its insured. To the contrary, Defendant has acted in good faith in all aspects of handling of Plaintiffs' claim. 15. Denied pursuant to Pa.R.C.P. 1029(e). The averments are further denied to the extent that they constitute conclusions of law to which no response is required. Defendant specifically denies that it breached any express or implied warranties. Defendant denies that it has not acted in good faith, and to the contrary, Defendant asserts that it has acted in good faith in all aspects of handling of Plaintiff's claim. 16. Denied pursuant to Pa.R.C.P. 1029(e). The averments are further denied to the extent that they constitute conclusions of law to which no response is required. Defendant specifically denies that it breached any contract or warranty. 17. Denied pursuant to Pa.R.C.P. 1029(e). The averments are further denied to the extent that they constitute conclusions of law to which no response is required. Defendant specifically denies that Plaintiffs are entitled to relief. WHEREFORE, Defendant, Pennsylvania General Insurance Company, demands judgment in its favor, together with all applicable court costs. NEW MATTER 18. Defendant incorporates herein by reference as though fully set forth herein the averments and denials contained in paragraphs 1 through 17 of this Answer and New Matter. 19. Defendant specifically and unequivocally denies any of the allegations contained in Plaintiffs' Complaint, which allegations are not specifically admitted in this Answer. 20. No act or omission of Defendant was the cause of, or a substantial factor in, causing any damages to Plaintiffs. 21. Plaintiffs fail to propedy plead a cause of action for a breach of warranty. 22. In the alternative, Defendant breached no warranty to Plaintiffs. 23. In the further alternative, no warranty or breach thereof, denied as aforesaid, caused Plaintiffs' alleged injuries and damages. 24. Plaintiffs fail to propedy plead a cause of action for emotional distress. 25. Plaintiffs' Complaint fails to state a claim upon which relief can be granted. 26. Defendant provided Plaintiffs with insurance coverage through a Homeowners policy, policy number OP-SU20054, for the policy period January 22, 2001 to January 22, 2002, a copy of which is attached hereto as "Exhibit A." 27. Under Section I, the Policy provides: We insure against risk of direct loss to property described in Coverage A and B only if that loss is physical loss, to property. We do not, however, insure for loss: Involving collapse, other than as provided in Additional Coverage 8.; Caused by: e. Any of the following: (1) Wear and tear, marring, deterioration; (2) Inherent vice, latent defect, mechanical breakdown; (3) Smog, rust or corrosion, mold, wet or dry rot; 28. Under SECTION I. Additional Coverages, the Policy provides: 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: Perils Insured Against in COVERAGE C - PERSONAL PROPERTY. These perils apply to covered buildings and personal property for loss insured by this additional coverage; b. Hidden decay; c. Hidden insect or vermin damage; d. Weight of contents,.., animals or people;... 29. Plaintiffs were not entitled to coverage under their policy in that there was no collapse under Pennsylvania law as set forth in Kattelman v. National Union Fire Insurance Co., 415 Pa. 61,202 A.2d 66 (1964); Dominick v. Statesman Insurance Co., 692 A.2d 188 (Pa. Super. 1997); and Meritcare, Inc. v. St. Paul Mercury Insurance Co., 166 F.3d 214 (3rd Cir. 1999). 30. Defendant had a reasonable basis for the actions that it took with respect to the Plaintiffs' claim. 31. Defendant has at all times relevant hereto acted in good faith and in compliance with the terms, conditions and provisions of the Policy. 32. The decisions made by Defendant were based upon its "fairly debatable" interpretation of the insurance contract and any and all applicable law. Accordingly, Defendant cannot be liable to Plaintiffs for bad faith in this case. 33. Defendant did not act in bad faith and Plaintiffs cannot prove by clear and convincing evidence that Defendant's conduct amounted to bad faith. 34. Plaintiffs are not entitled to recover interest, court costs, attorneys' fees, or any other damages. 35. Defendant acted with due diligence and in good faith at all times with respect to this matter. 36. Pursuant to the terms of the policy: 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. 37. Plaintiffs did not commence this action until May 24, 2002. 38. Since Plaintiffs failed to commence this action within one year from the date of the loss, they are barred by the contractual limitation contained in their policy from pursuing this action. WHEREFORE, Defendant Pennsylvania General Insurance Company respectfully requests that Plaintiffs' Complaint be dismissed in its entirety and judgment entered in its favor. Date: October 2, 2002 Respectfully submitted, THOMAS, THOMAS & HAFER, LLP I.D. Number: 32574 305 North Front Street P.O. Box 999 Harrisburg, PA 17108-0999 (717) 255-7643 Attorney for Defendant :179605.1 VERIFICATION I, Michael Moore, an authorized representative of Defendant, hereby verify that the averments made in the foregoing document are true and correct. I understand that false statements herein are made subject to the penalties of 18 Pa. C.S.A 4904 relating to unsworn falsification to authorities. MiChael Moore Exhibit A CUSTOM HOMEOWNERS POLICY DECLARATIONS (ii( ii) One Beacon POUCYNUMBER OP-SU20054 POLICY PERIOD COMPANY PENNSYLVANIA GENERAL INSURANCE COMPANY NAMED INSURED LARRY L LIEBRUM BARBARA E LIEBRUM 3 TEE-JAY DRIVE MT HOLLY SPRINGS PA 17065 LOCATION OF INSURED PREMISES 3 TEE-JAY DRIVE MT HOLLY SPRINGS PA 17065 Fmm 01-22-2001 t001-22-2002 AT12:01AM STANDARDTIME YOURA~ENT~ 3729654-00 J RODNEY FiCKEL INS AGY INC 155 W HIGH ST POBX1 CARLISLE PA 17013 (717) 249-2812 TR4NSACTION PAWIfENTPL4N RENEWAL CONVERSION OF HP 0662411 QUARTERLY BILLED I~lu~ ~ri~hted Material ~ Insurance Sewlces ~, In~ w~ ~ ~rmiss,~n. Copy. S, Insurance S~i~ Office, I~, 1~8-~02 Dear Policyholder~ J RODNEY FICKEL INS AGY INC and CGU INSUPJ[NCE are pleaeed to present you with your homeownere renewal ineurance policy. A bill for your premium is being een~ to you geparately advieing you of the minimum payment due and the premium due date. Thank you for letting ug be of eervice and if you have any questions, please contact J RODNEY FICKEL INS AOY INC at (717) 249-2812. SECIION I A. DWELLING B. OTHER STRUCTURES C. PERSONAL PROPERTY D. LOSS OF USE LIMITS OF LIAEILITY DEDUCTIBLE Section l: In case of loss, under Sec.1, we cover only that par 12 0,3 0 0 of the loss over the deductible stated below: 12,030 84,210 $250 S~CTION 1. 24,060 SECTION II PERSONAL LIABILITY - EACH OCCURRENCE MEDICAL PAYMENTS 100,000 2,000 G208050699 POLICY NUMBER: AGENT NUMBER: OP-SU20054 PH TERM: 01-22-2001 to 01-22-2002 INSURED COPY 3729654-00 RC PROCESS DATE: 11-20-2000 One Beacon iiiiii',ii ,ii ii iii i i i i i i ................................................................................. The following Forms, Endorsements and Exceptions to Conditions are part of this policy at the time of issuance. Please read them carefully. FOP, M NO. HO00030491 H004960491 HO01570397 0116350389 06059 06803 H004530491 0117350891 0130430496 0119510993 IIIL~ HOMEOWNERS 3 SPECIAL FOAM HOME DAY CA]t~-LIABILITY EXCLUSION/LIMITED PROPERTY COVBRAOE SPECIAL PROVISIONS - PENNSYLVANIA RADAR EXCLUSION ENDORSEMENT CONTINUOUS POLICY ENDORSEMENT INFLATION PROTECTION COVERAOE AT NO ADDITIONAL CHAROE CREDIT CARD LIMIT: $1,000 - NO PREMIUM CHARGE PROTECTION DEVICE OR SECURITY MEASURES - 6~ CREDIT EXTENDED REPLAC~MI~NT COST REPLACEMENT COST ENDORSEMENT - PERSONAL PROPERTY PLEASE REFER TO THE IMPORTANT NOTICES SECTION OF THIS POLICY FOR IMPORTANT iNFORMATION CONCENNINO THIS POLICY. O.A. POLICY HP 0662411 WE HAVE INCPJ~ASED YOUR COV. C LIMIT AT NO ADD'L CHAROE BASIC ADDITIONAL SCHEDULED PERSONAL HARBORMASTER TOTAL PREMIUM COVERAGES PROPERTY PREMIUM PERSONAL PROTECTOR HOMEOWNERS $249.00 $0.00 $0.00 $0.00 $0.00 $249.00 PREMIUM / CREDIT SUMMARW (Included in the Total Homeownem Premium) TOTAL POLICY PREMIUM A 10~ ACCOUNT CREDIT APPLIES TO THIS POLICY RETENTION CR 3~ PP~EMIUM CREDIT FOR RENEWING THIS POLICY WIT~ COU $249.00 HPD5 G208050699 POLICY NUMBER: OP.SU20054 PH AGENT NUMBER: 372965,4-00 RC TERM: 01-22-2001 to 01-22-2002 INSURED COPY PROCESS DATE: 11-20-2000 One Beacon MOJITI]46EENO. 1 MORTC~GEENO. 2 P.S,E.C.U. PSBU, ITS SUCCESSORS AND/OR ISAOA/ATIMA ASSIGNS, ATIMA P.O. BOX 67013 P.O. BOX 67013 HARRISBURG PA 17106 HARRISBURG PA 17106 RATE RISK 'TERRITORY TAX NUMBER OF BUILDING CODE CONSTRUCTION PLAN STATE TERRiTORY FAMILIES GRADING OF DWELLING 03 PRF PENNSYLVANIA 65 98737 ONE 99 FRAME FEET FROU MILES FROM PROTECTION YEAR DWELLING DWELLING HYDRANT FIRE DEPT. FIRE DISTRICT CLASS BUILT EFF. AGE WITHIN 1000 WITHIN 5 4 1972 RATING DATE 11-19-2000 (a)The residence premises is not seasonal; (b) No business pursuits are conducted on the residence premises; (c) Ti~e residence premises is the only premises where the named insur~l or s~use maintains a residence other than business or farm properties; (d) The insured has no full time residence employees; (e) The insured has no outboard motor(s) or watercraft otherwise excluded under this policy for which coverage is desired. Exceptions, if any, to (A), (B), (C), (D), or (E). Absence of any entry means "No ~xceptions". G208050699 POLICY NUMBER,, OP-SU20054 PH AGENT NUMBER: 3729654-00 RC TERM: 01-22-2001 to01-22-2002 INSURED COPY PROCESS DATE: 1L20-2000 One Beacon G5013 08 94 CONSUMER PROTECTION NOTICE We may, as a part of our unde~riting procedure for process- ing applications for insurance, or in updating or renewing it, order an investigative consumer report whereby information as to your character, general reputation, personal charac- teristics, and mode of living, whichever is applicable, is obtained through personal interviews with your neighbors, HO291 .01 81 PENNSYLVANIA NOTICE friends, or others with whom you are acquainted or who may have knowledge concerning any of these items of information to develop information, If such, consumer report is ordered, further information on the nature and scope of the investiga- tion is available to you upon your written request, An Insurance Company, its agents, employees, or service contractors acting on its behalf, may provide services to reduce the likelihood of injury, death or loss, These services may include any of the following or related services incident to the application for, issuance, renewal or continuation of, a policy of insurance: 1. surveys; 2. consultation or advice; or 3. inspections. The "Insurance Consultation Services Exemption Act" of Pennsylvania provides that the Insurance Company, its agents, employees or service contractors acting on its behalf, is not liable for damages from injury, death or loss occurring as a result of any act or omission by any person in the furnishing of or the failure to furnish these services, The Act does not apply: 1, if the injury, death or loss occurred during the actual performance of the services and was caused by the negligence of the Insurance Company, its agents, em- ployess or service contractors; 2, to consultation services required to be performed under a written service contract not related to a policy of in- surance; 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, POLICY NUMBER: OP-SU20054 PH TERM: 01-22-2001 tn 0i-22-2002 INSURED COPY AGENT NUMBER: 3729654-00 RC PROCESS OATE: 11-20-2000 H00003 04 91 HOMEOWNERS 3 SPECIAL FORM This policy is a legal contract between you and us, It consists of: 1. Your Policy Declarations; 2. This Policy Booklet~ and 3. Any Amendments, Endorsements and Schedules which we issue with your Policy, PLF.~SE RE~D Tills CAIIEFULL Y YOUR IlOMEOWNERS POUCY QUICK BEFERENCE OneBeacon AGREEMENT DEFINITIgNS SECTION I- PROPERTY C01fEItAGES Coverage A -- Dwelling Coverage B -- Other Structures Coverage C -- Personal Property Coverage D -- Loss of Use Additional Coverages Debris Removal Trees, Shrubs and Plants Credit Card Glass or Safety Glazing Material SECTION I- PERILS INSURED AGAINST SEC710N I-- EXCLUSIONS SECTION I- CONDITIONS Insurable Interest Duties After Loss Loss Settlement Mo~age Clause Page 1 1 2 Page 10 SECTION fl-- lIABILITY COVERAGES Coverage E --Personal Liability Coverage F -- Medical Payments to Others SECTION II- EXCLUSIONS 1 0 SECTION II-- ADDITIONAL COVSEAGES 12 Claim Expenses First Aid Expenses Damage to Property of Others Loss Assessment SECTION !1 -- CONDITIONS 12 Limit of Liability Duties After Loss SECTION I and SECTION II- CONDITIONS 1 3 Policy Period Cancellation Non-Renewal 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 Insured" shown in the Declarations and the spouse if a resident of the same household. "We", "us" and "our" refer to the Company providing this insurance. In addition, certain 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 t© 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 applies: (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 str~-tl~ ~-; 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: POLICY NUMBER: OF-SU20054 PH TERM: 01-22-200:L to 0[-22-2002 INSURED COPY AGENT NUMBER: 3729654-00 RC PROCESS DATE: ~.1-20-2000 Form No. HO 00 03 04 91 Page No, 2 OF 14 C. Any premises used by you in connection with a prem- ises 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 afl "insured"; f. Land owned by or rented to an "Insured" on which a one or two family dwelling is being built as a residence for an "lnsured"i g. Individual or family cemetery plots or burial vaults of an "Insured"; or h. Any part of a premises occasionally rented to an "in- sured'' 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 period, 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 related to the maintenance or use of the "residence premises", including household or domestic services; or b. Onewho performs similar duties elsewhere not related to the "business" of an "insured". 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 Dec- larations. SECTION I- PROPERTY COVEIM6ES ~O~IMGE A -- D.~lllng We cover: 1. The dwelling on the "residence premises" shown in the Declarations, including structures attached to the dwell- ing; and 2. Materia Is and supplies located on or next to the "residence premises" used to construct, alter or repair the dwelling or other structures on the "residence premises". 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 struc- tures 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. One BeacOn 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. COVERA(~E C- Personal Prol~rly 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 "residence 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 Coverege 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 property 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, manuscripts, 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 restore the information from the lost or damaged material. $ ~.000 on watercraft, including their trailers, furnishings, equipment and outboard engines or motors. $1000 on trailers not used with watercraft. $1000 for loss by theft of jewelry, watches, furs, precious and semi-precious stones. $2000 for loss by theft of firearms. $2500 for loss by theft of silverware, silver-plated ware, goldware, gold-plated ware and pewterware. This includes flatware, hollowware, tea sets, trays and trophies made of or including silver, gold or pewter. $2500 on property, on the "residence premises", used at any time or in any manner for any "business purpose". $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 1~.. 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 4. 5. 6, 7, POLICY NUMBER: OP-SU20054 PH TERM: 01-22-2001 tc 01-22-2002 INSURED COPY AGENT NUMBER: 3729654-00 RC PROCESS DATE: ~.:.-20-2000 Form No. HO 00 03 04 91 PageNo. 3 OF 14 from the electrical system of the vehicle or conveyance while retaining its capability of being operated by other sources of power. Electronic apparatus includes: 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 conveyance, if the electronic apparatus: a. Is equipped to be operated by power from the electrical system of the vehicle or conveyance while retaining 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 "business" purpose. Electronic apparatus includes: a. Accessories and 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 conveyances. 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 "lnsured's residence"l 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 "insured"; 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 "resi- dence 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; One Beacon 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. 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 principal 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 byyou 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 reside less any expenses that do not continue while the premises is not fit to live in. Payment under a. or b. will be for the shortest time required 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 expenses 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 "residence premises" as a result of direct damage to neighboring 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 COVERAGES 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. ~-~_h."*~ f ? This expense is included in the limit of liability that appliei;~ 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 POLICY NUMBER: OF-SU20054 FH TERM: 01-22-2001 to 01-22-2002 INSURED COP~, AGENT NUMBER: 3729654-00 RC PROCESS DATE: 11-20-2000 Form No. HO 0003 04 gl Page No. 4 OF 14 property, an additional 5% of that limit of liability 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: 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 regardless 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 necessary 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 -- CONDI- TION 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 department is called to save or protect covered property from a Peril Insured Against. We do not cover fire department 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 ap- plies to this coverage. 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. One Beacon 6. Credit Card, Fund Transfer Card, Forgery and Counter- felt 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 issued to 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 curren- cy. 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 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 ap- plies to this coverage. Defense= a. We may investigate and settte 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 coverage, 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 period against you by a corporation or association of property 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 prem- ises''. We do not cover loss assessments charged against you or a corporation or association of property owners by any governmental body. The limit of $1OO0 is the most we will pay with respect to any one loss, regardless of the number of assessments. Condition 1. Policy Period, under SECTIONS I AND II CONDITIONS, does not apply to this coverage. POLICY NUMBER: OP-SU20054 PH TERM: 0i-22-2001 to 01-22-2002 INSUREI) COPY AGENT NUMBER: 3729654-00 RC PROCESS DATE: 11-20-2000 Form No. HO O0 03 04 gl Page'No. 5 OF 14 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 additional 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 during the course of the construction, remodeling or renova- tion. 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. Collapse does not include settling, cracking, shrinking, bulging or expansion. This coverage does not increase the limit of liability applying 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 dwell- ing being constructed is not considered vacant. Loss for damage to glass will be settled on the basis of replacement with safety glazing materials when required 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 furnishings, in an apartment on the "residence premises" regularly rent- ed or held for rental to others by an "insured", for loss caused only by the following Perils insured Against= a. Fire or lightning. b. Windstorm or hail. This peril does not include loss to the property con- tained 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 mo- tors, only while inside a fully enclosed building. c. Explosion. One Beacon d. Riot or civil commotion. e. Aircraft, including self-propelled missiles and space- craft. f. Vehicles. g. Smoke, meaning sudden and accidental damage from smoke. This peril does not include loss caused by smoke from agricultural smudging or industrial 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 failing 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 with- in 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 pro- vided in the peril of freezing below; or (3) On the "residence premises" caused by accidental discharge or overflow which occurs off the "res. Idence premises". In this peril, a plumbing system does not include a sump, sump pump or related equipment. I. Sudden and accidental tearing apart, cracking, burn- lng 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. m. Freezing of a plumbing, heating, air conditioning or automatic 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: (1) Maintain heat in the building; or (2) Shut off the water supply and drain the system and appliances of water. n. Sudden and accidental damage from artificially gen- erated electrical current. This peril does not include loss to a tube, transistor or similar electronic component. ~,~ ~.~ o. Volcanic eruption other than loss caused b~"e~art/n~ 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. POLICY NUMBER; OP-SU20054 PH TERM: 01-22-2001 to 01.22.2002 INSURED COPY AGENT NUMBER: 3729654-00 RC PROCESS DATE: 11-20-2000 Form No, HO O0 03 04 gl Page No. 6 OF 14 SECTION I-- PERILS INSURED AGAINST COFRIMGE A -- DWEU. I#G and ~OFEIMGE B -- OilIER SMUg. TI]RES 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, however, insure 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 immediately 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- lng 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 otherwise excluded, from a plumbing, heating, air conditioning or automatic fire protective sprinkler system or One Beacon household appliance, we cover loss caused by the water including the cost of tearing out and replacing any part of a building necessary to repair the system or appliance. We do not cover loss to the system or appliance from which this water escaped. 3. Excluded under Section I -- Exclusions. Under items 1, and 2., any ensuing loss to property described in Coverages A and B not excluded or excepted in this policy is covered. gOVEIMGE C -- PERSO#AL 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. 1. Fire or lightning, 2. Windstorm or hall. 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 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 materials 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 immediately before the loss; b. Watercraft, and their furnishings, equipment and out- board engines or motors; or c. Trailers and campers. 10. Falling objects. This peril does not include loss to property contained in a building unless the roof or an outside wall of the building POLICY NUMBER; OP-SU20054 PH TERM: 01-22-2001 to 01-22-2002 INSURED COPY AGENT NUMBER.. 3729654-00 RC PROCESS DATE: 11-20-2000 Form No. HO 00 03 04 91 Page Ro. 7 OF 14 is first damaged by a falling object. Damage to the failing 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 automatic fire protective sprinkler system or from within a household appliance. This peril doss not include loss; a. To the system or appliance from which the water or steam sscaped~ b. Caused by or resulting from freezing except as provided in the peril of freezing below; or c. On the "residence premises" caused by accidental 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. 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 rssulting from freezing under this peril. 14. Freezing of a plumbing, heating, air conditioning or auto- matic fire protective sprinkler system or of a household appliance. This peril does not include loss on the "residence prem- Isss" 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 appliancss of water. 15. Sudden and accidental damage from artificially gen- erated 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. SECTION I-- EXCLUSIONS 1. We do not insure for loss caused directly or indirectly by any of the following. Such loss is excluded regardless of any other cause or event contributing concurrently or in any sequence to the toss. 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 vol- canic eruption= landslide; mine subsidence; mudflow., 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. One Beacon 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 thsse, 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, foundation, swimming pool or other structure. Direct loss by fire, explosion or theft rssulting from water damage is covered. d. Power Failure, meaning the failure of power or other utility service if the fail,ire takss place off the "res- Idence 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 prsserve 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 personnel; or (3) Destruction, seizure or use for a military purpose. Discharge of a nuclear weapon will be deemed a warlike act even if accidental. g. Nuclear Hazard, to the extent set forth in the Nuclear 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 Cov- eragss 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 conditions. However, this exclusion only ap- plies 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 decide, of any person, group, organization or governmental body; c. Faulty, Inadequate or defective: (1) Planning, zoning, development, surveying, sitting; (2) Design, specifications, workmanship, repair, con- struction, renovation, remodeling, grading, compac- tion; (3) Materials used in repair, construction~ov, ati0n or remodeling; or ' ~' -;' ;~' (4) Maintenance= of part or all of any property whether on or off the "residence premises". POLICY NUMBER: OP-SU2005z- PH INSURED COPY TERM: 01-22-2001 to 01-22-2002 AGENT NUMBER: 3729654-00 RC PROCESS DATE: 11-20-2000 Form No. HO O0 0,3 04 91 Page No. 8 OF 14 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 mom 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 orfund 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 inventory; f. As often as we reasonably require: (1)Show the damaged property; (2) Provide us with records and documents we request 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 of 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) Specifications of damaged buildings and detailed repair estimates; ($)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, statingthe amount and cause of loss. 3. Loss Settlement. Covered property losses are settled as follows: a. Property of the following types: (1) Personal property; (2) Awnings, carpeting, household appliances, outdoor antennas and outdoor equipment, whether or not attached to buildings; and (3) Structures that are not buildings; i ' 11t One Beacon 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 fol- lowing: (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 immedi- ately before the loss, we will pay the cost to repair or replace, after application of deductible and with- out deduction for depreciation, but not more than the least of the following 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 repair or replace the damaged building. (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 immedi- ately before the loss, we will pay the greater of the following amounts, but not 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 replace, after application of deductible and without de- duction 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 replacement 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 include the value of: (a) Excavations, foundations, piers or any supports 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 foundation 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 com- plete, we will settle the loss according to the pro- visions 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 provisions of b.(1) and b.(2) above whether or not actual repair or replacement is complete. POLICY NUMBER: OP-SU20054 PH TERM: 01-22-2001 to 01-22-2002 AGENT NUMBER: 3729654-00 RC INSOI~ED COPY PROCESS DATE: 11-20-2000 Form No. HO 00 O~ 04 gl Page ~lo. g OF 14 (5) You may disregard the replacement cost loss settle- ment 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 Settle- ment. 4. Loss to a Pair or Set. In case of less 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 required 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 appraiser 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 wilh 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 proportion 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 A~alnst 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. 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. OneBeacon 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 mortgagee is named, the order of payment will be the sa me 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 mo~.gagee 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, wewill receive a full assignment and transfer of the mortgage and all securities held as collateral to the mortgage debt. Subrogation will not impair the right of the mortgagee to recover the full amount of the mortgagee's claim. 13. No Benefit to Ballee. We will not recognize any assign- ment 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, radia- tion, or radioactive contamination, all whether control- led 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 other- wise 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 a ny 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 received for the. jec~overed property. POLICY NUMBER: OP-SU20054 PH TERM: 01-22-2001 to 01-22-2002 AGENT NUMBER,, 3729654-00 RC INSURED COPY PROCESS DATE: 1,1-20-2000 Form No. HO O0 03 04 gl Page No. 10 OF 14 16.Volcanic Eruption Period. One or more volcan Jc eruptions that occur within a 72-hour period will be considered as one volcanic eruption. SECTION II- LIABILITY COVERAGES COVEJt4GE E-- Personal I. iabili~ 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 prejudg- ment interest awarded against the "Insured"; and 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 "occur. fence" equals our limit of liability. COVERAGE F- Medical Payments To Others We will pay the necessary medical expenses that are incurred or medically ascertained within three years from the date of an accident causing "bedlly Injury". Medical expenses means reasonable charges for medical, surgical, x-ray, den- tal, ambulance, hospital, professional nursing, prosthetic devices and funeral services. This coverage does not apply to you or regular residents of your household except "res- Idence employees". As to others, this coverage applies only: 1. To a person on the "insured location" with the permission 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" Jn the course of the "residence employee's" employment by an "in. sured"; or d. Is caused by an animal owned by or in the care of an "insured". SECTION fl - EXCLUSIONS 1. Coverage E -- Personal Liability and Coverage F -- Medical 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 part of any premises by an "insured". This exclusion does not apply to the rental or holding for rental of an "insured location": (1) On an occasional basis if used only as a residence: One Beacon (2) In part for use only as a residence, unless a single family unit is intended for use by the occupying family to lodge more than two roomers or boarders; or (3) In part, as an office, school, 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 Iocatlon"~ f. Arising out of: (1)The ownership, maintenance, use, loading or un- loading of motor vehicles or all other motorized land conveyances, including trailers, owned or operated by or rented or loaned to an "Insured"; (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 land conveyance designed for recrea- tional 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 Iocation"~ (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: (a) Used to service an "insured's" residence., (b) Designed for assisting the handicapped; or (c) In dead storage on an "insured location"; g. Arising out of: (1)The ownership, maintenance, use, loading or un- loading 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 de- signed 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 pow- er of 50 horsepower or less not owned by an "insured"; POLICY NUMBERr OP-SU20054 PH TERM; 01-22-2001 to 01-22-2002 AGENT NUMBER: 3729654-00 RC INSURED COPY PROCESS DATE: 11-20-2000 Form No. Page ~o. ho (b) Inboard or inboard-outdrive engine or motor pow- er of more than 50 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 period; and (a) You declare them at policy inception~ or (b)Your intention to insure is reported to us in writingwithin 45 days after you acquirethe outboard engines, or motors, (ii) You acquire them during the policy period, This coverage applies for the policy period. (2)That are sailing vessels, with or without auxiliary power: (a) Less than 26 feet in overall lensth~ (b)26 feet or more in overall lensth, not owned by or rented to an "Insured", (3) That are stored; Arising out of: (1)The ownership, maintenance, use, loading or un- loading 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 actions 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; Caused directly or indirectly by 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 personnel; or (3) Destruction, seizure or use for a military purpose. Discharge of a nuclear weapon will be deemed a warlike act even if accidental; Which arises out of the transmission of a commun- icable disease by an "Insured"; Arising out of sexual molestation, corporal punishment or physical or mental abuse; or 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 ex- clusion does not apply to the legitimate use of prescrip- tion drugs by a person followingthe orders of a licensed physician. (if l One Beacon Exclusions e., f., g., and h. do not apply to "bodily Injury" to a "residence employee" arising out of and in the course of the "residence employee's" employment by an "In. sured". 2. Coverage E m Personal Liability, does not apply to: a. Liability; (1) For any loss assessment charged against you as a member of an association, corporation or com- munity of property owners; (z) Under any contract or agreement. However, this exclusion does not apply to written contracts: (a)That directly relate to the ownership, mainte- nance 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 fin- 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 policyl 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 m 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 "res- Idence employee's" employment by an "insured"; 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 POLICY NUMBER: OP-SU20054 PH TERM: 01-22-2001 to 01-22-2002 INSURED COPY AGENT NUMBER: 3729654-00 RC PROCESS DATE: 1 !-20-2003 Form No, HO O0 03 04 gl Page No. 12 OF 14 (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". SEglTON II-- ADDi770NAL COVEIMGES 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; b. Premiums on bonds 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; 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, fora assisting 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"bodlly Injury" covered under this policy. We will not pay for first aid toyou or any other "insured". 3. Damage to Property of Others. We will pay, at replace- ment cost, up to $500 per "occurrence" for "property 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 premises 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 motorized 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 period OneBeacOn against you by a corporation or association of property 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, provided: (1) The director, officer or trustee is elected by the members of a corporation or association of property owners; and (2) The director, officer or trustee serves without deriv- ing 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 prem- ises'', 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 wilt pay for loss arising out of: a. One accident, including continuous or repeated ex- posure to substantially the same general harmful con- dition; 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 Ex- clusion 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. All "bodily Injury" and "property damage" resulting from any one accident or from continuous or repeated exposure to substantially the same general harmful conditions shall be considered to be the result of one "occurrence". Our total liability under Coverage F for all medical expense 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 sep- arately 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 "occurrence", 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"; POLICY NUMBER: OP-SU20054 PH TERM: 01-22-200i to 01-22-2002 AGENT NUMBER: 3729654-00 RO INSURED COPY PROCESS DATE: 11-20-2DD0 Form No. HO 00 03 04 91 PageNo. 13 OF 14 (2) Reasonably available information on the time, Place and circumstances of the accident or "occurrence"; 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 (1) To make settlement~ (2)To enforce any right of contribution or indemnity 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 atten- dance 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 "lnsured'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 required, 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 reasonably 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 pa rty to a ny action against an "insured". Also, no action with respect 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 insurance except insurance written specifically to cover as excess over the limits of liability that apply in this policy. One Beacon 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. 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 material fact or circumstance; b. Engaged in fraudulent conduct; or c. Made false statements; relating to this insurance. Liberalization Clause. If we make a change which broad- ens coverage under this edition of our policy without additional premium charge, that change will automatically 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 duringthe policy period stated in the Declarations. This Liberalization Clause does not apply to changes implemented through introduction of a subsequent edition of our policy. 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 appraisal or examination will not waive any of our rights. 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 notice 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 misrepresentation of fact which if known to us would have caused us not to issue the policy; or (b)lf 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 anniver- by letting you know at least 30 days ~pre,;.tl~e sary date cancellation takes effect. "' ,: ~/ POLICY NUMBER; OP-SU20054 PH TERM: 01-22-2001 to 01-22-2002 INSURED COP'~' AGENT NUMBER: 3729654-00 RC PROCESS DATE: 11-20-2000 Form No. HO 00 03 0~ gl Page No. 14 OF 14 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 a ny person. If not waived, we may require an assignment of rights of recovery for a loss to the extent that payment is made by us. One Beacon If 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 "insured" 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 ap- pointment and qualification of a legal repre- sentative. In Witness Whereof, we have caused this policy to be executed and attested and if required by state by law, this policy shall not be valid unless countersigned by our authorized agent. Dennis Smith, Secretary CountersignedAgency at: (Authorized Agent) POLICY NUMBER: OP-SU20054 PH TERM: 01-22-2001 to 01-22-2002 AGENT NUMBER,, 3729654-00 RC INSURE~ COPY PROCESS DATE,, 11-20-2000 HO 0137 O3 97 SPECIAL PROVISIONS- PENNSYLVANIA One Beacon SECTION I-- PROPERTY ~'OtlF. IMGES COi~IM~ C -- Parseeal Propm~ Spedal ~ of Llabil~ Items 10. and 1Z. are deleted and replaced by the following (these are items 7. and 8. in Form HO O0 08): 10.$1,000 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 conveyance while retaining its capability of being operated by other sources of power. Electronic apparatus includes: a. Accessories or antennas; or b. Tapes, wires, records, discs or other media; for use with any electronic apparatus described in this item 10. 11.$1,000 for loss to electronic apparatus, while not in or upon a motor vehicle or other motorized land conveyance, if the electronic apparatus: a. Is equipped to be operated by power from the electrical system of the vehicle or conveyance while retaining 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 "business" 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 ].].. 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 conveyan- ces. 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 B -- Loss of ff~ For all forms other than HO OO 04 and HO O0 06, 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 else- where. For Forms HO O0 04 and HO O0 06, item 1. is deleted and replaced by the following: 1. If a loss by a Peril Insured Against under this policy 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 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 else- where. 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 property 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 morethan the limit of liability for the damaged property, an additional 5% of that limit of liability is available for debris removal expense. (The second sentence of this paragraph does not apply to Form HO O0 08.) b. Fallen trees (1) If circumstances of a loss meet those specified in (2) below, we will pay your reasonable expense, up to $500, for the removal from the "residence prem- Ises'' 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 00 02, HO 00 03, HO O0 04 and HO 00 06 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 covere~ under this policy and the Pennsylvania Goverrfb~i~eCar. es POLICY NUMBER: OP-SU20054 PH TERM: 01-22-2001 to 01-22-2002 INSURED COPY AGENT NUMBER: 3729654-00 RC PROCESS DATE: 1:.-20-2000 Form No. Page No. HO 01 37 0397 20F 4 the area in which the "residence premises" is located to be a disaster area as a result of such weather conditions. · QDDITIONAL COVERAGES 9. Glass or Safety Glazing Material is deJeted and replaced by the following: 9. Glass or Safety Glazing Material a. We cover: (1) For all forms other than HO O0 04 and HO O0 06, 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 O0 04, 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 O0 06, the breakage of glass or safety glazing material which is part of a building, storm door or storm window, and covered under Cov- erage A; and (2) For all forms other than HO O0 04 and HO O0 06, the breakage, caused directly by Earth Movement, of glass or safety glazing material which is part of a covered building, storm door or storm window, and for (a) Form HO O0 04, the breakage, caused directly by Earth Movement, of glass or safety glazing material which is part of a building, storm door or storm window, and covered as Building Addi- tions and Alterations: and (b) Form HO O0 06, the breakage, caused directly by Earth Movement, of glass or safety glazing 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 splinters 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.($) above; or (2) On the "residence premises" if the dwelling has been vacant for more than 30 consecutive days immediately before the loss, except when the break- age results directly from Earth Movement as pro- vided for in a.(2) above. A dwelling being constructed is not considered vacant. Loss to glass covered under this ADDITIONAL COVERAGE 9. will be settled on the basis of replacement with safety glazing materials when required by ordinance or law. For Forms HO O0 O! and HO O0 08, 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 O0 O! and HO O0 08.) One Beacon The following ADDITIONAL COVERAGE is added to all forms except HO O0 08. With respect to Form HO O0 04, thewords 'covered building' used below, refer to property covered under ADDITIONAL COVERAGE ZO. Building Additions and Alterations. 11.Ordinance or Law a. You may use up to ].0% of the limit of liability that applies to COVERAGE A (or for Form HO O0 04, you may use up to ].0% of the limit of liability that applies to Building Additions and Alterations) for the increased costs you incur due to the enforcement of a ny ordina nco or law which requires or regulates: (1) The construction, demolition, remodeling, renova- tion 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 undam- aged part of a covered building or other structure, when that building or other structure must be totally demolished because of damage by a PERIL IN- SURED 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 re- modeling, repair or replacement of that part of the covered building or other structure damaged 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, demoli- tion, remodeling, renovation, repair or replacement 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 ordinance 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 neutral- ize, or in any way respond to, or assess the effects of, pollutants on any covered building or other struc- ture. Pollutants means any solid, liquid, gaseous or ther- mai irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled, recondi- tioned or reclaimed. This coverage is additional insurance. (This is ADDITIONAL COVERAGE 10. in Forms HO O0 01 and HO O0 06.) SECTION I -- PERILS INSURED AGAINST Under Form HO O0 03, Coverage A -- Dwelling and Cover- age 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; POLICY NUMBER: OP-SU2005,~ PH TERM: 01-22-2~301 to 01-22-2002 AGENT NUMBER: 3729654-00 RC INSURED COPY PROCESS DATE: 11-20-2000 Form No. HO 0'1 37 03 97 Page'No. 3 OF 4 In Endorsements: HO O0 15, Special Personal 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 I7 31, Unit-Owners Coverage C, this is Item 3.d.(3) under Section I -- Perils InsuredAgainst. HO 17 32, Unit-Owners Coverage A, this is Item 2.e.(3) under Perils Insured Against. SECT/ON I-- EXCU/S/ON$ 1. Ordinance or Law is deleted and replaced by the follow- ing: 1. Ordinance or Law, meaning any ordinance or law: a. Requiring or regulating the construction, demolition, remodeling, renovation or repair of property, including removal of any resulting debris. This exclusion 1.a. in all forms other than HO O0 03, and 1.a.(1) in the Form HO O0 03, does not apply to the amount of coverage that may be provided for under ADDITIONAL COV- ERAGES, 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, monitor, 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 thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned or reclaimed. This exclusion applies whether or not the property has been physically damaged. (This is exclusion 1.a. in Form HO O0 03.) 2. Earth Movement is deleted and replaced by the following: 2. Earth Movement, meaning earthquake, including land shock waves or tremors before, during or after a volcanic eruption; landslide; mine subsidence; mudflow; earth shrinking, 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 O0 03.) 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 l.d. in Form HO O0 03.) SECTION I- CONDITIONS Under 3. Loss Settlement in Forms HO O0 02 and HO O0 03 item b.([) is deleted and replaced by the following: One Beacon b. Buildings under Coverage A or B at replacement cost without deduction for depreciation, subject to the fol- lowing= (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 immedi- ately before the loss, we will pay the cost to repair or replace, after application of the deductible and without deduction for depreciation, but not more than the least of the following 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 repair or replace the damaged building. The replacement cost will not exceed that necessary for like construction and use on the same premises; regardless of whether the replacement building or repaired building is located on the same or a dif- ferent premises. 3. Loss Settlement. Under Form HO O0 06, 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 replace. 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 working days after we receive your signed, sworn proof of loss. SECTION II-- UABlUJT GOFERAGES Item 1. Coverage E- Personal Liability is deleted and replaced 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, item 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: a, Prejudgment interest awarded against the "Insured" on that part of the judgment we pay. Any prejudgment interest awarded against the 'insured" is subject to the applicable Pennsylvania Rules of Civil Procedure, SECTIONS I AND II- CONDITIONS 2. Concealment or Fraud is deleted and replaced by the following: 2. Concealment or Fraud POLICY NUMBER; OP-SU2005z. PH TERM: 01-22-200! to 01-22-2002 INSURED COPY AGENT NUMBER: 3729654-00 RC PROCESS DATE~ 1:.-20-2000 Form No. HO 01 $7 03 97 Page No, 4 OF 4 a. Under SECTION I-- PROPERTY COVERAGES, with respect to all "lnsureds' covered under this policy, we provide no coverage for loss under SECTION I-- PROPERTY COVERAGES if, whether before or after a loss one or more "lnsureds" have= (1) Intentionally concealed or misrepresented any ma- terial 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 "lnsureds" who, whether before or after a loss, have.. (1) Intentionally concealed or misrepresented any ma- terial fact or circumstance; (2) Engaged in fraudulent conduct; or (3) Made false statements, relating to this insurance. 5. Cancellation. ParaEraph 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 atthe mailing addrees 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 cancel- lation 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 mis- representation, 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 increase in hazard in the risk assumed by us subsequent to the date the policy was issued; (c) There is a substantial increase in hazard insured against by reason of willful or negligent acts or omissions by the "insured"~ (al)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 Pennsyl- vania Insurance Commissioner. One Beacon This provision shall not apply if the named "insured" 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 "Insured" 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 policy. 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. 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 ].80 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 "insured" 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 ap- pointment and qualification of a legal represen- tative. All other provisions of this policy apply. POLICY NUMBER: OP-SU20054 PH TERM: 03.-22-200! to 01-22-2002 AGENT NUMBER: 372965~--00 RC INSIJRCO COPY PROCESS DATE: 11.20-2000 Gl1951 0993 PER~ SONAL PROPERTY REPLACEMENT COST COVERAGE ENDORSEMENT One Beacon 1. For an added premium, we will settle losses to covered property of the following types: a. personal property; b. carpeting., c. domestic appliances; d. awnings; e. outdoor equipment; and f. outdoor antennas; whether or not attached to buildings at full replacement cost without deduction for depreciation subject to para- graph 3, 2. The following articles or classes of property separately described and specifically insured in this policy will also be settled in the same manner: 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. 3. The following loss settlement procedure applies to all property insured under this endorsement: We will pay not more than the smallest of the following amounts: a. The amount necessarily spent to: (1) replace the property; or (2) repair the property; or b. Any applicable limit of liability stated in this policy including: (1) The limit of liability applying to Coverage C; and (2) any special limit of liability; and (3) for loss to any item separately described and specifi- cally insured in this policy, the limit of liability that applies to that item. 4. We will not settle losses as provided in this endorsement if: a. The loss is to any of the following types of property: (1) Property made obsolete or unusable for its originally intended purpose by its: (a) age; or (b) condition. (2) Property which cannot be replaced because of its sentimental value; (3) Property valuable because of its rarity or artistic merit, such as: (a) paintings; (b) etchings; (c) pictures; (d) tapestries; (e) art glass windows; (f) valuable rugs; (g) statuary; (h) marbles: (I) bronzes~ (J) antique furniture; (k) rare books; (I) antique silver; (m) manuscripts; (n) porcelains; (o) rare glass; or (p) bric-a-brac; (4) Property valuable because of its age or history, such as: (a) memorabilia; (b) souvenirs; or (c) collector's items; b. Actual repair or replacement is not completed. We will pay no more than the actual cash value for the loss or damage until the actual repair or replacement is completed. 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 necessary to continue the repair or replace- ment. 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 al- lowed under 3. Under this loss settlement procedure, the following 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 com- pletion date of the repaired property or delivery date of the replaced property. (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. All other provisions of this policy apply. POLICY NLIMBER: OP-SU2005z- PH TERM: 01-22-2001 to 01-22-2002 AGENT NUMBER: 372965z--00 RC INSUR£§COPY PROCESS DATE: 11-20-2000 HO 04 96 0491 NO SECTION II-- UABIUTY COVERAGES FOR HOME DAY CARE BUSINESS UMITED SECTION I- PROPERTY COVERAGES FOR HOME DAY CARE BUSINESS OneBea con. If an "insured" regularly provides home day care services to a person or persons other than "lnsureds" 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 ~..b. of Section II -- Exclusions; 2. Does not provide Section I -- COVerage B coverage where other structures are used in whole or in part for "business"~ 3. Limits coverage for property used on tho"residence prom. Ises" for the home day ca re enterprise to $2,500, boca use Gl1635 03 89 RADAR EXCLUSION ENDORSEMENT Coverage C -- Special Limits of Liability -- item 8. imposes that limit on "business" property on the "res- Idence premises". (Item 8. corresponds to item 5. in Form HO CO 08.)., 4. Limits coverage for property used away from "residence 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 zO. and (Items 9., 10. and ZZ. correspond to items 6., 7. and 8. respectively in Form HO O0 08.) THIS ENDORSEMENT DOES NOT CONSTITUTE A REDUC- TiON OF COVERAGE. Under SECTION I -- COVERAGES -- COVERAGE C PERSONAL PROPERTY-- Property Not Covered, item 10. is added: 10. Loss to equipment designed for use in a motor vehicle for the detection or location of radar. G6059 CONTINUOUS POUCY ENDORSEMENT Subject to the consent of this Company, this policy will be continued in force upon payment of the required continuation premium for each successive policy period, subject to the G6803 INFLATION PROTECTION COVERAGE forms, rules, rates and premiums then in effect, for the Company. Failure to pay the required premium when due will result in the issuance of a legal notice of cancellation. In the event a loss exceeds the limit of liability for Coverage A, B, C or D, the limits for these coverages will be adjusted for inflation. A residential building cost index will be used as provided to us by a major appraisal company. Adjustment of policy limits will be made on a pro rata basis from the policy inception. This will reflect the most recent annual residential building cost index in effect at the time of loss. The adjusted amount after rounding to the nearest $1,000, will be the revised limits of liability. POLICY NUMBER: OP-SU20054 I=H TERM: 01-22-2001 to 01-22-2002 AGENT NUMBER: 3729654-00 RC INSURED COPY PROCESS DATE: 1 !.20-2000 HO 04 53 04 91 CREDIT CARD, FUND TRANSFER CARD, FORGERY AND COUNTERFEIT MONEY COVERAGE- Increased Limit ji~l~ OneBeac°n For an additional premium, the limit of liability for Additional Coverage 6., Credit Card, Fund Transfer Card, Forgery and Counterfeit Money, is increased to $ (See De~larations). All other provisions of this policy apply. Gl1735 O8 91 PROTECTION DEVICE OR SECURITY MEASURES For a premium credit, we acknowledge the existence of a fire protection or alarm system, automatic sprinkler system or other security measure approved by us on the "residence premises". You agree to maintain this system, device or G13043 04 96 EXTENDED REPLACEMENT COST ENDORSEMENT security measure and to notify us promptly if any change is made to it or if the system, device or security measure is removed or discontinued. For an added premium if you agree, as part of this Replace- ment Cost option, to: A. Insure the dwelling to 100% of its full replacement cost and permit us to re-calculate the replacement cost on a periodic basis; B. Maintain coverage on the dwelling at 100% of its full replacement cost by paying renewal premiums computed to reflect the then current replacement cost. The current replacement cost of the dwelling will be based on the residential construction cost index provided to us by a major appraisal company; C. Report to us, within 60 days, any improvements to the dwelling, If you do not, and the full replacement cost of these improvements exceeds $5,000 or 5% of the Cow erage A limit shown on the Declarations page, whichever is greater, then the limit shown on the Declarations page will again become the maximum limit we will pay; D. Elect to repair or replace the damaged dwelling; We agree that the limits of liability shown on the Declarations page are modified as follows: A, COVERAGE A -- DWELLING We will increase the Coverage A limit of liability to equal the current replacement cost of the dwelling if the amount of loss to the dwelling is more than the limit of liability shown on the Declarations page, The Coverage A limit shown on the Declarations page will be used to determine your premium only, except as otherwise stated in this endorsement. B, COVERAGE B -- OTHER STRUCTURES When the amount of loss to Coverage A --Dwelling is more than the limit of liability shown on the Declarations page, we will also increase the limits of liability for Coverage B, by the same percentage as applied to Cov- erage A. C. If you comply with the provisions of this endorsement and there is a loss to the dwelling insured under Coverage A. Section I -- Conditions, Conditions 3. Loss Settlement paragraph b. will not apply to Coverage A-- Dwelling. It is replaced by paragraphs b., c., d. and e. as follows: b. The Dwelling under Coverage A at replacement cost without deduction for depreciation. We will pay the lesser of the following a mounts for eq u ivalent construc- tion and use on the same premises: (1) The replacement cost of the dwelling or any parts of it; or (2) The amount actually spent to repair or replace the dwelling or any parts of it. c. When the cost to repair or replace the damage is more than $2,500 or more than 5% of the amount of insurance in this policy on the dwelling, whichever is less, we will pay no more than the actual cash value of the damage until actual repair or replacement is com- pleted, d. You may disregard the replacement cost loss settle- ment provisions and make claim under this policy for loss or damage to the dwelling on an actual cash value basis and then make claim within 180 days after loss for additional liability on a replacement cost basis. e. Payment under this endorsement will not include any increased costs due to the enforcement of any or- dinance or law except as provided under Section I -- Property Coverages, Additional Coverage 11, Ordi- nance or Law. This endorsement is void if you fail to comply with its provisions. All other provisions of this policy apply, POUCY NUMBER: OP-SU2005z- PH TERM: 03.-22-2001 to 0~.-22-2002 AGENT NUMBER: 3729654-00 RC INSURED COPY PROCESS DATE: 11-20-2000 CUSTOM HOMEOWNERS POLICY DECLARATIONS POI, EYNUMBEiI OP-SU20054 POLICY PERIOD One Beacon COMPANY PENNSYLVANIA QENERAL INSURANCE COMPANY NAMED INSURED LARRY L LIEBRUM BARBARA E LIEBRUM 3 TEE-JAY DRIVE MT HOLLY SPRINGS PA 17065 LOCATION OF INSURED PREMISED 3 TEE-JAY DRIVE MT HOLLY SPRINGS PA 17065 Fmm 01-22-2001 to01-22-2002 AT 12:0! AM STANDARD TIME YOURAGENT~ 3729664-00 J RODNEY FICKEL iNS AGY INC 161 W HIGH ST POBX1 CARLISLE PA 17013 (717) 2&9-2812 TP.4N~4CTION PAR#ENTPLAN POLICY CHANGE EFFECTIVE - 01-22-2001 QUARTERLY BILLED includ~ Copyr~ht~d M~al ~ In~n~ S~tvic~s 0~, In~ w~ ~ ~rmls~. ~ Insu~nce S~,vlc~s Office, In,, 1~8.2002 Dear Poltcyholder~ Please review the attached endorsement to your policy and keep this with your COT/ INSURANCE papers. A bill for premium a~Justment, if any, is being sent to you separately. Thank you for let=ing us be of service and if you have any ques=ions, please contact J RODNEY FICKEL INS AGY INC at (717) 2&9-2812. Policy has been amended as follows: [A=ADD; D= DELETE; CF=CHANG E FROM) pREMIUMABJUSTMF3tTS: ADDITIONAL PREMIUM NONE MORTGAGEE CHANGED- P.S.E.C.U., G208050699 POLICY NUMBER: OP.SU2OO5Z. PH AGENT NUMBER,, 3729654-00 EN TERM: 01-22-200~. to 01-22-2002 INSURED COPt' PROCESS DATE; 10-02-2001 One Beacon ~ ~i~i~::~i~i~?:ii!iii!i~ili~i~i~iii~i~i!i~i!::!~!:~!::~ ................. ~!~ ~ ~!~ :.:: ::ilii ii iiiiiil :.i:~i::ii::iiiiii i:: i::il i ii::::ii A. DWELLING B. OTHER STRUCTURES C. PERSONAL PROPERTY D. LOSS OF USE Section l: in casa of loss, under Sec.1, we cover only that paff :12 0,3 0 0 of the loss over the deductible stated below: 12,030 84,210 Saso SECTZON 1. 24,060 SEGTION II Ee PERSONAL LIABILITY - EACH OCCURRENCE 100,000 MEDICAL PAYMENTS 2,000 The following Forms, Endorsements and Exceptions to Conditions are par~ of this policy at the time of issuance, Please read them carefully, HO00030491 HO01370397 Gl16350389 HO04960491 G6059 06803 EO04530491 Gl17350891 O130430496 0119510993 SOM~OWNERS 3 SPECIAL FOP. M SPECIAL PROVISIONS - PENNSYLVANIA RADAR EXCLUSION ENDORSEMENT EOM~ DAY CA.E-LIABILITY EXCLUSION/LIMITED PROPERTY COVERAGE CONTINUOUS POLICY ENDORSeMeNT INFLATION PROTECTION CO%'~AGE AT NO ADDITIONAL CHA~GE CREDIT CARD LIMIT= $1,000 - NO PP. ENIUM CHARGE PROTECTION DEVICE OR SECURITY MEASUP~ES - 6~ CP. EDIT EXTENDED P~EPLACEMENT COST RSPLACEMENT COST ENDORSeMeNT - PERSONAL PROPERTY G.A. POLICY HP 0662411 G208050699 POLICY NUMBER: OP-SU2O054 PH AGENT NUMBER: 3729654-00 EN TERM: 01-22-2001 to01-22-2002 INSURED COP? PROCESS DATE: 10-02-2001 OneBeacOn BASIC ADDITIONAL GCHEDULED RERSONAL HARBORMASTER TOTAL PREMIUM COVERAGES PROPERTY PREMIUM PERSONAL PROTECTOR HOMEOWNERS 249.00 $0.00 $0.00 $0.00 $0.00 $249.00 PREMIUM/CREBITSUMMAR~: (Included in the Total Homeowners Premium) TOTAL POLICY PREMIUM ADDITIONAL PREMIUM - NONE A 10~ ACCOUNT CREDIT A~PLIES TO THIS POLICY RETENTION CR 3~ PP~EMZUM CREDIT FOR RENEWING THIS POLICY WITH CGU $249.00 ~gEE NO. f ALLZANCB MORTGAGE COMPANY ZSAOA/ATIMA PO BOX 2139 JACKSO~ILLE FL 32232 hO~ % 20464 MOR'r~A6EE NO. 2 P.S.E.C.U., ITS SUCCESSORS ARD/ASSIGNS ATIMA P. O. EOX 67013 H~/~RISBURG PA 17106 LOAN % 20464 RATE RISK TERRITORY TAX NUMBER OF BUILDING CODE CONSTRUCTION PLAN STATE TERRITORY FAMILIES GRADING OF DWELLING 0 3 PRF PENNSYLVANIA 6 5 98737 ONE 99 FRAME FEET FROM MILES FROM PROTECTION YEAR DWELLING DWELLING HYDRANT FIRE DEPT. FIRE DISTRICT CLASS BUILT EFF. AGE WITHIN 1000 WITHIN 5 4 1972 RATING DATE 11-19-2000 G208050699 POLICY NUMBER: OP-SU20054 PH AGENT NUMBER: 372965z..00 EN TERM: 01-22-2001 to 01-22-2002 INSURED COPY PROCESS DATE~ 10-02-200! One Beacon !a!.The re. sidence prem. ises !s. not sea~nal; (b! No business pursuits are ~nducted on the res dence premises; (c) The res dence prem ses IS tne Only premises where Tne nameo insureo or spouse maintains a resioence other than business or farm properties; (d) The insured has no full time residence employees; (e) The insured has no outboard motor(s) or watercraft otherwise excluded under this policy for which coverage is desired. Exceptions, if any, to (A), (B), (¢), (D), or (E). Absence of any entry means "No Exceptions". G208050699 POLICY NUMBER: OP-SU2005,4 PH AGENT NUMBER: 3729654-00 EN TERM: 0~.-22-200~. to 0~.-22-2002 INSURED COPY PROCESS DATE: ~.0-02-200:[ CERTIFICATE OF SERVICE I, David L. Schwalm, Esq., do hereby certify that on this day I served a true and correct copy of the foregoing by first class mail, postage prepaid, addressed to the following: William Patrick Douglas, Esquire 27 W. High Street P.O. Box 261 Carlisle, PA 17013-0261 THOMAS, THOMAS & HAFER, LLP ~-~'chwalm,' Esquire I.D. Number: 32574 305 North Front Street P.O. Box 999 Harrisburg, PA 17108-0999 (717) 255-7643 Attorney for Defendant Dated: October 2, 2002 DOUGLAS, DOUGLAS & DOUGLAS 27 W. HIGH ST. POB 261 CARLISLE PA 17013 TELEPHONE 717-243-1790 WILLIAM P. DOUGLAS, ESQ. Supreme Court I.D.# 37926 GEORGE F. DOUGLAS, III, ESQ. Supreme Court I.D.# 61886 LARRY LIEBRUM AND IN THE COURT OF COMMON PLEAS OF BARBARA LIEBRUM, HIS WIFE PLAINTIFF VS CGU INSURANCE DEFENDANT CUMBERLAND COUNTY PENNSYLVANIA NO. 02-2561 CIVIL ACTION LAW PLAINTIFFS' REPLY TO DEFENDANT'S NEW MATTER 18. through 25. Denied as a legal conclusion to which no response is necessary. 26. Admitted. 27. 28. It is admitted that these are limited portions of the insurance policy. 19. through 35. Denied as a legal conclusion to which no response is necessary. 36. It is admitted that this is language contained in paragraph 8 of the policy. 37. Denied. The suit in questions was filed in a timely manner. 38. Denied as a legal conclusion to which no response is necessary. WHEREFORE, it is prayed that that Defendant's New Matter be dismissed and judgment be entered in favor of the Plaintif~tg?-N /~ William P. Douglas,' - ~ Attorney for Plaintiffs ~ Affidavit This verification is made pursuant to Pa.R.C.P 1024(c) by counsel for the plaintiff. To the best of the signer's knowledge, information and belief, the foregoing is true and correct. Dated: William P: Douglas Attorney for plaintiffs David L. Schwalm, Esquire Identification Number: 32574 Thomas S. Brumbaugh, Esquire Identification Number: 89037 Thomas, Thomas & Haler, LLP 305 N. Front Street P.O. Box 999 Harrisburg, PA 17108-0999 (717) 255-7643 Attorneys for Defendant LARRY LIEBRUM LIEBRUM, Plaintiffs CGU INSURANCE, Defendant and BARBARA IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW NO. 02-2561 To Plaintiffs and their counsel: NOTICE TO PLEAD You are hereby notified to plead to the enclosed Motion for Judgment on the Pleadings within twenty (20) days of service hereof or the relief requested may be entered against you. Date: October 30, 2002 THOMAS, THOMAS & HAFER, LLP David L. Schwalm, Esquire //~ Identification Number: 3257'4' Thomas S. Brumbaugh, Esquire Identification Number: 89037 305 North Front Street P.O. Box 999 Harrisburg, PA 17108-0999 (717) 255-7643 LARRY LIEBRUM and BARBARA LIEBRUM, Plaintiffs CGU INSURANCE, Defendant IN THE COURT Of COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW NO. 02-2561 ORDER AND NOW, the day of , 2002, upon consideration of Defendant's Motion For Judgment On The Pleadings and supporting memorandum of law, IT IS HEREBY ORDERED that the said motion is granted and judgment is entered for Defendant and against Plaintiffs as to all causes of action except for the cause of action under 42 Pa. C.S.A. {}8371. David L. Schwalm, Esquire Identification Number: 32574 Thomas S. Brumbaugh, Esquire Identification Number: 89037 Thomas, Thomas & Hafer, LLP 305 N. Front Street P.O. Box 999 Harrisburg, PA 17108-0999 (717) 255-7643 Attorneys for Defendant LARRY LIEBRUM and BARBARA LIEBRUM, Plaintiffs CGU INSURANCE, Defendant IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW NO. 02-2561 MOTION FOR JUDGMENT ON THE PLEADINGS AND NOW, Defendant Pennsylvania General Insurance Company, incorrectly identified as CGU Insurance, by and through its attorneys, Thomas, Thomas & Haler, LLP, moves this Court pursuant to Pa.R.C.P. 1034 for judgment on the pleadings in its favor for the following reasons: 1. On May 24, 2002, Plaintiffs instituted the present lawsuit by the filing of a Praecipe for Writ of Summons. A certified copy of the docket is attached hereto as "Exhibit A." 2. A Writ of Summons was issued on May 24, 2002. A copy of the Writ of Summons is attached hereto as "Exhibit B." 3. On August 20, 2002, Plaintiffs filed a Complaint, alleging inter alia, that Plaintiffs suffered a partial collapse in their home on April 20, 2001, and that Defendant wrongfully refused to pay proceeds in accordance with the terms of a Homeowners insurance policy issued by Defendant. A copy of the Complaint is attached hereto as "Exhibit C." 4. On October 3, 2002, Defendant Pennsylvania General Insurance Company filed an Answer and New Matter to Plaintiffs' Complaint, denying all liability and raising the affirmative defense that pursuant to the terms of the policy, Plaintiffs are barred from pursuing this action by the contractual limitation contained within their policy. A copy of Defendant's Answer and New Matter is attached hereto as "Exhibit D." 5. On October 23, 2002, Plaintiffs filed a reply to Defendant's New Matter. A copy of Plaintiff's Reply to New Matter is attached hereto as "Exhibit E." 6. The pleadings between Plaintiffs and Defendant are now closed. 7. Defendant provided Plaintiffs with insurance coverage through a Homeowners policy, policy number OP-SU20054, for the policy period January 22, 2001 to January 22, 2002, a copy of which is attached to Defendant's Answer and New Matter as "Exhibit A." 8. The insurance policy issued by Defendant to Plaintiffs provides, in pertinent part: 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. 8. In paragraph 3 of the Complaint, Plaintiffs allege that the damages occurred on April 20, 2001. 9. Plaintiffs did not commence this action until May 24, 2002, more than one year after the date of loss. 10. Since Plaintiffs failed to commence this action within one year from the date of the loss, all of Plaintiffs' contractual claims under the insurance policy are barred by the contractual limitation contained within the policy. WHEREFORE, Defendant Pennsylvania General Insurance Company respectfully requests that this court enter judgment in favor of Defendant and against Plaintiffs and dismiss all causes of action contained within Plaintiffs Complaint except the cause of action under 42 Pa. C.S.A. §8371. Respectfully submitted, THOMAS, THOMAS & HAFER, LLP David L. Schwalm, Esquire ~ Identification Number: 32574 Thomas S. Brumbaugh, Esquire Identification Number: 89037 305 North Front Street P.O. Box 999 Harrisburg, PA 17108-0999 (717) 255-7643 Attorneys for Defendant Date: October 30, 2002 PYS510 Cumberland County Prothonotary's Office Civil Case Inquiry 2002-02561 LIEBRUM LARRY ET AL (vs) CGU INSURANCE Reference No..: Case TvDe ..... : WRIT OF SIIMMONS Judgmeh% ...... Judge Assigned: ' Disposed Desc.: ............ Case Comments ............. Filed ........ : Time ......... : Execution Date Jury Trial .... Disposed Date. Higher Crt 1.: Higher Crt 2.: Page 1 5/24/2002 3:16 o/oo/oooo o/oo/oooo ******************************************************************************** General Index Attorney Info LIEBRUM LARRY PLAINTIFF DOUGLAS WILLIAM P 3 TEE JAY DRIVE PLAINTIFF DOUGLAS WILLIAM P SCHWALM DAVID L MT HOLLY SPRINGS PA 17065 LIEBRUM BARBARA 3 TEE JAY DRIVE ~T HOLLY SPRINGS PA 17065 CGU INSURANCE 100 CORPORATE CENTER DRIVE CAMP HILL PA 17011 DEFENDANT ******************************************************************************** * Date Entries , ............. FIRST ENTRY .............. [~/28/2002 PRAECIPE FOR WRIT OF SUMMONS IN CIVIL ACTION-WRIT OF SUMMONS ISSUED [/31/2002 SHERIFF'S FILE RETURNED FILED. ~age Type: WRIT OF SUMMONS Ret Type.: Regular inigant.: CGU INSURANCE Add~es~..: 100 CORPORATE CENTER DRIVE Cty/St/Zp: CAMP HILL, PA 17011 Hnd To: EUE LEITZEL, CLAIM MANAGER Shf/D ty.: ROBERT BITNER Date/~ime: 05/30/2002 1000:00 Costs .... : $38.35 Pd By: DOUGLAS DOUGLAS DOUGLAS 05/31/2002 7/31/2002 ................................................................... PRAECIPE FOR APPEARANCE FOR DEFT - BY DAVID n SCHWALM ESQ V/31/2002 PRAECIPE FOR RULE TO FILE COMPLAINT - BY DAVID L SCHWALM ESQ AND RULE TO FILE COMPLAINT - BY CURTIS R LONG POTHONOTARY 8/20/2002 COMPLAINT - BY WILLIAM P DOUGLAS ESQ FOR PLFF 10/03/2002 ANSWER AND NEW MATTER BY DAVID L SCHWALM ESQ ,,,,,,,,,----------------_________ 10/23/2002 BLAINTIFF'S-REPLY-TO-DEFT[S-NEW-MATTER-- BY WILLIAM P DOUGLAS ESQ FOR PLFFS .............. LAST ENTRY ............. * Escrow Information , * Fees & Debits Beg Bal Pymts/Adj End Bal * WRIT OF SUMMONS 35.00 35.00 .00 TAX ON WRIT .50 .50 .00 SETTLEMENT 5.00 5.00 .00 JCP FEE 5.00 5.00 .00 45.50 45.50 .00 * End of Case Information , TRUE COPY FROM RECORD In Testimony whereof, I here unto set my hand and the s~al d said Court at Carlisle, Pa. T~~"~,day o~~ ~-.._.. /~,~ ,,?,,.. , .~.~ ~ - -- prothonotary --" 7'-'~ '~ c°~m6nweal~l~0f Pennsylv-fffiia County of Cumberland Larry Lebrium and Barbara Liebrum In the Court of Common Pleas of h/w Cumberland County, Pennsylvania Plaintiffs VS No. 02 --~'b~/ Ci~ Term CGU Insurance 100 Corporate Center Drive Camp Hill, PA 17011 Defendant Civil action law Jury Trial Demanded To: Writ of Summons CGU Insurance 100 Corporate Center Drive Camp Hil.~ PA 17011 You are hereby notified that Lary Liebrum and Barbara Liebrurn have brought an action against you. date: May 24, 2002 iRUE COPY FRO~v~ RECORD In Te~Jmony ~vilsreof, I here unto sel my hanc ~nd the se~! of Said Cou~ at ~rlisl8 Pa DOUGLAS, DOUGLAS & DOUGLAS 27 W. HIGH ST. POB CARLISLE PA 1701:5 TELEPHONE 717-243-1790 Larry Liebrum and Barbara Liebrum h/w Plaintiffs WILLIAM P. DOUGLAS, ESQ. Supreme Court I.D.~ 37926 In the Court of Common Pleas of Cumberland County, Pennsylvania VS No. 02 --2561 Civil Te~-, CGU Insurance 100 Corporate Center Drive Camp Hill, PA 17011 Civil action law Jury Trial Demanded Defendant NOTICE 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 DAYS AFTER THIS COMPLAINT AND NOTICE ARE SERVED, BY ENTERING A WRITTEN APPEARANCE PERSONALLY OR BY Aq'TORNEY 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. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. Cumberland County Bar Association 2 Liberty Square Carlisle PA 17013 717-249-3166 DATE: August 19, 2002 Complaint The plaintiff, Larry Leibrum and Barbara Liebrum, are adult individuals residing at 3 Tee Jay Drive, Mt. Holly Springs, Cumberland County, Pennsylvania. The Defendant, CGU Insurance, is a corporation licensed to do business in orp e Co .mmo__nwealth of Pennsylvania, with a claims office located at 100 orate Center Drive, Camp Hill, Cumberland County, Pennsylvania. On April 20, 2001, the plaintiffs suffered a parlSal collapse in their home. There was a policy of insurance in effect at the time of the loss with CGU Insurance Company. The contract provided for payment of loss caused by partial collapse. o As a result of the aforesaid loss the plaintiffs have incurred expense to correct the damage caused by the loss. CGU Insurance wrongfully refused to pay for loss in accordance with the terms of their policy. CGU Insurance has frivolously and with no proper foundation for their actions refused to pay proceeds under their policy of insurance and provide medical benefits in accordance with the terms of the policy. The bad faith conduct of CGU Insurance gives rise to a cause of action pursuant to 42 Pa. C.S.A. §8371. The defendant failed to promptly and completely investigate all claims arising under the aforementioned contract of insurance, by reason of the aforesaid incident. 10. 11. The defendant did not act in good faith to effectuate prompt, fair and equitable resolution of claims, knowing that liability was clear and coverage applies, and as a result, the plaintiff has been forced to incur expense to protect their interests. The defendant failed to promptly provide a factually sound explanation for the basis of denial in the insurance policy in relation to the facts or applicable law for denial of the daim. 12. The defendant has willfully, maliciously and/or recklessly withheld benefits from the plaintiff, due to its failure to investigate the claim thoroughly which constitutes a breach of an implied covenant. 13. The defendant, in bad faith, has denied payment on behalf of its insured without a sound legal basis for its denial and in not fully inquiring into the possible basis which might support the insured's claim of coverage. 14. CGU Insurance has deliberately acted in conscious disregard and with indifference to the rights of their insured. 15. 16. 17. The defendant impliedly and/or expressly warranted that it would, in good faith, provide insurance coverage to Larry Leibrum and Barbara Liebrum in accordance with the contract and abide by the terms of said contract. As a result of the aforesaid, the defendant breached its contract and/or warranty, which breach resulted in loss to the plaintiff, including aggravation, inconvenience and emotional distress. The plaintiff hereby requests all remedial relief as provided in 42 Pa. C.S.A. §8371 and payment in full of all past and future reasonable and necessary expenses arising from the loss. Wherefore it is prayed that judgment be entered in favor of the plaintiffs and against the defendant in an amount in excess of that requiring compulsory referral to arbitration. A jury trial is hereby demanded. August 19, 2002 · ~ Respect~ly submitted, Wimam p. Do.-u s, Esq. Attorney for Pl~ntiff AFFIDAVIT I hereby swear or affirm that the foregoing is true and correct to the best of my knowledge and/or information and belief. This is made subject to the penalties of 18 pa.C.S.Section 4904 relating to unswom falsification to authorities. David L. Schwalm, Esquire Identification Number: 32574 Thomas S. Brumbaugh, Esquire Identification Number: 89037 Thomas, Thomas & Hafer, LLP 305 N. Front Street P.O. Box 999 Harrisburg, PA 17108-0999 (717) 255-7643 Attorneys for Defendant LARRY LIEBRUM and BARBARA LIEBRUM, Plaintiffs CGU INSURANCE, Defendant IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA CIVIl_ ACTION - LAW NO. 02-2561 PRAECIPE FOR LISTING CASE FOR ARGUMENT TO THE PROTHONOTARY: Please place Defendant's Motion for Judgment on the Pleadings on the next available argument court list. Respectfully submitted, THOMAS, THOMAS & HAFER, LLP By: David L. Schwaln~, Esquire Tho,mas S. Brumbaugh, Esquire 305 North Front Street P.O. Box 999 Harrisburg, PA 17108-0999 (717) 441-7116 Date: November 25, 2002 212254.1 CERTIFICATE OF SERVICE I, Thomas S. Bmmbaugh, Esquire, do hereby certify that on this day I served a tree and correct copy of the foregoing by first Class mail, postage prepaid, addressed to the following: William Patrick Douglas, Esquire 27 W. High Street P.O. Box 261 Carlisle, PA 17013-0261 THOMAS, THOMAS & HAFER, LLP David L. Schwalm, Eso~ Identification Number: 32574 Thomas S. Bmmbaugh, Esquire Identification Number: 89037 305 North Front Street P.O. Box 999 Harrisburg, PA 1710,8-0999 (717) 255-7643 Attorneys for Defendant Dated: November 25, 2002 DOUGLAS, DOUGLAS & DOUGLAS 27 W. HIGH ST. POB 2~1 CARLISLE PA 17013 TELEPHONE 717-243-1790 William P. Douglas, Esq. Supreme Ct. ID # 37926 Larry Liebrum and Barbara Liebrum h/w Plaintiffs In the Court of Common Pleas of Cumberland County, Pennsylvania VS No. 02,--2561 Civil Term CGU Insurance 100 Corporate Center Drive Camp Hill, PA 17011 Defendant Civil action law Jury' Trial Demanded Praecipe to Settle and Discontinue Dear Mr. Long, Please mark the above captioned matter settled and discontinued. January 17, 2003 illiam P. Dougla~sq~ Attorney for Pl~ffs