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Thomaa E. Brenner
I. D. No. 32085
Goldberg, Katzman' Shipman, P.c.
320 Mlrket Street
P,O. Box 1268
Harriaburg, PA 17108-1268
Attorney for Defendant
WILLIAM GOETZ,
Plaintiff
IN THE COURT OF COMMON PLEAS
CUMBERLAND COUNTY, PENNA.
NO 95-6790 CIVIL TERM
v.
ERIE INSURANCE EXCHANGE
JURY TRIAL DEMANDED
Defendant
PRAECIPE
TO THE PROTHONOTARY:
Please mark this action settled and discontinued.
Date:
7 )1 /jJ
I .
HARRINGTON & CALDWELL, p.e.
B~~
Roger Ha ri gton, Esquire
Attorney for Plaintiff
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WILLIAM GOETZ,
Plainliff
vs.
ERIE INSURANCE EXCHANGE,
ERIE INSURANCE GROUP,
Defendants
AND NOW, this
13'"
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
95-6790 CIVIL
CIVIL ACTION - LAW
ORDER
day of January, 19999, on agreement of counsel for the
parties. trial herein is continued. The Prothonotary is directed to list this matter for the tenn of
court commencing March IS, 1999.
Roger J. Harrington, Esquire
For the Plaintiff
Thomas Brenner, Esquire
For the Defendants
Court Administrator
:rlm
BY THE COURT,
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Thomu E. Bmma'. Elquln!
GOlDBERG. KATZMAN &. S1UPMAN, P.c.
320 MuRt Street
P.O. Box 1268
HarrlIbwg, PA 17108.1268
AttorN!)' I,D. No: 32085
IN THE COURT OF COMMON PLEAS
CUMBERlAND COUN1Y, PENNSYLVANIA
W1UJAM GOETZ,
Plaintiff
Case No: 95-6790
v.
ERIE INSURANCE EXCHANGE,
Defendant
DEFENDANT'S PRE-TRIAL MEMORANDUM
I. STATEMENT OF FAcrs AS TO LlABILlTV:
This case involves a claim for damages to two properties, one located at 131-
133 Glenwood Road, Dillsburg. Pennsylvania, and the other located at 6599 Carlisle
Pike, Mechanicsburg, Pennsylvania. both owned by the Plaintiff. Plaintiff is alleging
loss and damage to each property as the result of windstorm and/or the weight of ice,
mow and/or sleet occuning on or about January 17, 1994. In addition, Plaintiff is
claiming that Erie refused to pay these claims without reasonable basis in violation of
42 Pa. C.S. Section 8371.
Defendant is an insurance company which issued Plaintiff the aUltrasure
Package Policy for Landlords" regarding both properties. As to the claims arising
from the Dillsburg property, the provisions of the policy are set forth on pages 9 and
10 and exclude claims for: (a) deteriomtion or depreciation; (b) settlement, cracking,
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shrinking, bulging or expansion; (c) wear and tear, rust or corrosion, mold or rotting;
(d) latent or hidden defects; (e) vennln or insects; (0 arising from rain, snow or water
damage not arising from a covered loss arising from defective or inadequate design,
development of specifications. workmanship or construction; (g) arising from use of
improper materials and construction: and (h) arising from improper maintenance.
As to the claims arising from the Mechanicsburg property, they are excluded
from coverage based upon the language of the pollcy set forth on pages 8 and 9,
including: (a) deterioration or depreciation: (b) settling, cracking, shrinking, bulging
or expansion of materials: (c) the loss not be caused by weight of ice or snow; and (d)
the damage pre-existed the alleged loss date of January 17, 1994.
Defendant acted in good faith in the investigation, evaluation and denial of
Plaintifrs claim. The Mechanicsburg claim was denied by letter of January 12, 1995,
and the Dillsburg claim was denied by letter of January 13, 1995. Defendant also
hired Eugene J. Aufiero &..Assodates, Inc. to inspect and evaiuate both properties to
detennine if the alleged damage was caused by ice and snow. Mr. Aufiero's opinion is
that the conditions of the roof were not caused by ice and snow deposited on the
buildings in the winter of 1993-1994, The roof conditions are the result of
deterioration and construction deficiencies, Plaintifrs claims do not constitute a
covered loss under the tenns of the policies issued by Erie Insurance,
Moreover, Mr, Aufiero was requested to reinspect the properties after the deposition
of the Plaintiff to evaluate the alleged claims In light of the explanation provided and
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confirmed In a supplemental report that the damage was not related to snow or storm
damage.
II. STATBMENr OF FACI'S AS TO DAMAGES
To be provided by the Plalntiff
III. STATEMENr AS TO PRINCIPAL ISSUES OF LIABILI1Y &.DAMAGES
1. Does the Plaintiff state claims that are covered under the Erie policy?
2. What damages were caused by snow or storm damage?
IV. LEGAL ISSUES
I. Whether damages under 42 Pa C,S. A. Section 8371 are applicable? ThIs
Issue was the subject of a Motion for Partial Summary Judgment that was
argued before this Court on December 9, 1998. No decision has been Issued by
this Court as of this date.
V. IDENITIY OF WITNESSES
Mr. Gary Rini
Mr, Joe Lapano
Mr, Eugene Aufiero
Shirley Cornman
Mr. Clarence Overcash, Jr.
Mr. WllUam Goetz (As on cross-examination)
And all Individuals Identified by Plaintiff,
VI. UST OF EXHIBITS
Photographs
Reports of Eugene Aufiero
Erie Documents
Weather records
Erie Insurance policies
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VII.
STATUS OF SETl'LEMENT NEGOTIATIONS
Erie bued on Itllnvestlgatlon and the evaluatlon of the building expert
believes thlJ Is a defensible clalm. Based on the cost of defense of the clalm.
Erie hu offered $10.000.
Respectfully submitted.
Goldberg. Katzman & Shipman. P.C.
BY.aL!Jt~t~
Thomas E. Brenner. Esquire
Attorney 1.0. No. 32085
Attorneys for Defendant Erie
Date: January 7. 1999
. .
CERTIFICATE OF SERVICE
I hereby certify that on this 7th day of Janwuy 1999, a true and correct
copy of the foregoing Pre-Trial Memorandum was sClVed upon the following by
depositIng same Into the United States Mail, first-class mail, postage pre-paid to:
Roger J. HarrIngton, Esquire
Harrington &. Caldwell, P.C.
Robert Morris Building
100 North 17th Street, 15th Floor
PhlladeIphla, PA 19103
GOLDBERG, KATZMAN &. SHIPMAN, P.C.
BY~~&:.'~ _
THOMAS E, BRENNER, ESQUIRE
Attorney for Defendant Erie
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JAN 8 199~
HARRINGTON & CALDWELL, P.C.
By: Roger J. Harrington
IDENnFICATION NUMBER: 09885
100 NORTH 17TH STREET, 15TH FL.
PHILADELPHIA, PA 19103
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WILLIAM GOETZ
ATTORNEY FOR PLAINTIFF
IN THE CUMBERLAND
COUNTY COURT OF
COMMON PLEAS
va.
NO. 95.6790
ERIE INSURANCE
.. EXCHANGE, ERIE
INSURANCE GROUP
PLAINTIFF'S PRE-TRIAL MEMORANDUM
I. Fact Statement
William Goetz is the owner of two investment properties, as follows:
A) 131-133 Glenwood Road, York, PA 17019, and
B) 6599 Carlisle Pike, Mechanicsburg, PA 17055.
At all times relevant hereto, including on or about January 17, 1994,
plaintiffs two properties were insured by defendant under two separate policies.
The Glenwood property was insured under a policy called, "Ultrasure Package
for Property Owners"; and, the Carlisle Pike property was insured under a policy
called, "Ullrasure Package Policy for Landlords".
.'
II. Plaintiffs Damaaes
A. Glenwood
1.
Repair costs based on
replacement cost value
$62,905.83
2.
6% legellnterest from the date
of loss'
(.06)(62,905.83)(5 yrs.)
$j8.871.74
Total: $81,777.58
~
1. Repair costs based on replacement
cost value.
$7,564.73
2. 6% legal interest from the date of loss
(.06)(7,564.73)(5 yrs)
~2.269.41
$9,834.15
Total:
C. Bad Faith
Plaintiff also has plead a claim for Bad Faith pursuant to 42 Pa. C.S.A.
Section 8371 for damages which includes:
1) Punitive damages,
2) Costs and attorney fees,
3) Legal interest at prime plus 3%.
III. Plaintiff's Discussion of L1abllltv and Measure of Damaaes
A, The Glenwood Pollcv
The "Ultrasure Package Policy for Property Owners" is an all risk policy
for the structure such that any risk of loss is covered unless expressly excluded.
The polley states on page 9:
"PERILS INSURED AGAINST
BUILDINGS - COVERAGE A
BUSINESS PERSONAL PROPERTY AND PERSONAL
PROPERTY OF OTHERS - COVERAGE B
, Plaintiff Is enlltled to Interest from the date of loss when the company denies liability per
Berkelev Inn. Inc, v. Centennial Ins. Co.. Pa. Super., 442 A.2d 1078 (1980).
2
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"
RENTAL INCOME PROTECTION - COVERAGE C
This polley Insures egelnst risks of loss under Buildings
(Coverage A), Business Personal Property and Personal
Property of Others (Coverage B) and Rental Income Pro-
tection (Coverage C), except as excluded In this polley."
In Miller v. Boston Ins. Co., 420 Pa. 566, 218 A.2d 275 (1966) the
Pennsylvania Supreme Court held:
"...we must conclude that the very nature of the term
"all risks" must be given a broad and comprehensive
meaning as to covering any loss other than a willful
or fraudulent act of the insured." Miller v. Boston Ins. Co.,
420 Pa. 566, 218 A.2d 275 (1966)."
Plaintiff notes that under Exclusions, the policy states on pages 9 and 10:
"LIMITATIONS ON OUR DUTY TO PAY - SECTION I
What We Do Not Cover - Exclusions
*
*
*
(6) to the Interior of the building by rain, snow, sand
or dust, whether drivbn by wind or not, unless the
exterior of the bUilding first sustains damage to its
roof or wall by a covered loss. We wl/l pay for loss
caused by or resulting from the thawing of snow,
sleet or Ice on the building."
Regarding the measure of damages, plaintiff submits that the polley
provides that covered loss and damage is indemnified on a replacement cost
basis, page 17 of polley.
Replacement cost value is construed by Pennsylvania courts as meaning
the actual cost of repair or replacement with like kind and quality bUilding
...
materials without deduction for depreciation. Se Canulll v. Allstate Ins. Co., 315
Pa. Super. 460, 462 A.2d 776,777 (1983). In addition, under Ferauson vs.
Lakeland Ins. Co., Pa. Super., 596 A.2d 883 (1991), the insured does not have
to perform repairs before obtaining full replacement cost value. Also, under
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Gllderman vs. State Farm, Pa. Super., 649 A.2d 941, 945 (1994), defendant
cannot withhold overhead and profit on payment under a replacement cost value
polley. The Gilderman court states:
"..., we note that insureds under these policies have paid an
additional premium for replacement cost coverage so that the
insured can afford to repair or replace a loss at current market
value and essentially keep the value of his property the same."
Replacement cost value is distinguished by Pennsylvania courts from
market value which is the price to be paid. In Fedas vs. Ins. Co. of Stata of Pa.,
300 Pa. 55, 151 A.285, 288 (1930) the Supreme Court states:
''The rula established by our decision seeks a result which will
anable tha parties to restore the property to as near the condition
as it was at the lime of the fire, or pay for it in cash; that was the
loss insured against"
Further, it is Pennsylvania insurance law that "A fire insurance policy (or
extended peril policy) is a contract of indemnity, intended to cover every loss,
damage or injury proximately caused by fire (or, the covered peril) and every
loss necessarily following directly and immediately from such peril or from the
surrounding circumstances." Penna. Law Encyclopedia, 19 PLE (Insurance)
Section 292, page 170.
B. The Carlisle Pollcv
The "Ultrasure Package Policy for Landlords" is a named peril policy such
that loss must be caused by a named peril in order for coverage to apply. On
page 7 the policy states that the following perils are covered:
"PERILS INSURED AGAINST
DWELLINGS - COVERAGE A
BUSINESS PERSONAL PROPERTY - COVERAGE B
RENTAL INCOME PROTECTION - COVERAGE C
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this policy Insured against loss caused by the following
perils:
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(9) Weight of Snow, Ice or Sleet, not Including loss to
business personal property in the open..."
The measure of damages under this polley Is also replacement cost, see
page 12 of the polley.
C. Defendant's Burden Of Proof On Any Properly Raised
Coveraae Exclusion
Defendant has the burden of proof on any exclusion or coverage limitation
which defendant expressly raised as an affirmative defense in new mailer. Miller
vs. Boston Ins. Co., 420 Pa. 566, 218 A.2d 275 (1966).
In the event defendant contends that plaintiff failed to fulfill any policy
condition, then in order to prevail, defendant must first prove plaintiff did in fact
not fulfill the policy condition and that defendant was prejudiced by plaintiff's
alleged failure to comply with any condition. In Fishel v. Yorktowne Mut. Ins.
~., Pa. Super., 385 A.2d 562 (1978) the Court states:
''When a defendant seeks to avail himself of a substantive
defense the defense becomes an affirmative one and the
defendant at that point must shoulder the duty of coming
forward with the evidence in support of what he affirmed,
and in order to take advantage of a condition in a policy
he must show that he was prejudiced by the omission or
failure of the insured to act."
IV. SummarY of Leaallssues
Plaintiff Is not aware of any unusual legal issues regarding admissibility of
testimony, exhibits or other matters at this time.
Assuming the Court will deny defendant's Motion for Partial Summary
Judgment then plaintiff submits that the bad faith claim recently briefed in
5
defendant's Motion for Partial Summary Judgment and plaintiff's Answer thereto
should be submitted to the Jury, The plaintiff Incorporates by reference the
discussion of defendant's Bad Faith conduct contained In Plaintiff's Brief in
Opposition to Defendant's specific violation of the commonwealth's Unfair
Insurance Practices statute and regulations.
V. fJ!ln!Iff. Witnesses
William Goetz
326 South Tenth Street
Lemoyne, PA 17043
Paul Carlevale
C&Z Construction
4825 Derry Street
Harrisburg, PA 17111
Dan Soboloskl
Assured Adjustment Associates
2336 Phllmont Avenue, Second Floor
Huntingdon Valley, PA 19006
Clarence A. Overcesh, Jr.
133 Glenwood Road
Dlllsburg, PA 17019
Mark Spicher
B16 E. South Street
Carlisle, PA
William E. Smith
Pa. Concrete, Inc.
1707 S. Cameron Street
Harrisburg, PA 17102
Shirley M. Cornman
131 Glenwood Road
Dillsburg, PA 17019
"
6
Ann G. Lee
133 Glenwood Rd., Apt. 2
Dlllsburg, PA 17019
Gary Rlnl
Box 954
Camp Hili, PA 17001
Records custodian and/or authorized representative
Shiner Insurance Agency
Plaintiff specificelly reserves the right to supplement this list to Includre
any Individuals mentioned in discovery, as well as any individuals mentioned in
defendant's answers to discovery.
V. Plaintiff's Exhibits
P-1 Declaration page and
insurance policy for Glenwood Road
P-2 Declaration page and
Insurance policy for 6599 Carlisle Pike
P-3 Climate dala January 1994
P-4 Paul Carlevale report 9-29-95
P-5 Assured Adjustment Associates
estimate to repair 133 Glenwood Road
P-6 Assured Adjustment Associates
estimate to repair 6599 Carlise Pike
P-7 Temporary repair invoices (A and B)
for Glenwood Road
P-8 Temporary repair invoices for
Carlisle Pike
P-9 Photographs of Glenwood by
Assured Adjustment Associates
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P-10 Plaintiffs photos of Glenwood
P-11 Plaintiffs photos of Carlisle Pike
P-12 Rlnl's photos of Glenwood
P-13 Rlnl's photos of Carlisle
P-14 Mark Spicher proposal
P-15 Overcash estimate 5-31-94
P-16 Lapano estimate
P-17 Assured Notice of Assignment Glenwood
P-18 Assured Notice of Assignment Carlisle
P-19 Erie's Log Glenwood
P-20 Erie's Log Carlisle
P-21 Erie Application for Glenwood (7-17-92)
P-22 Erie Application for Carlisle (undated)
P-23 Shiner's letter to Erie 10-17-94
P-24 Shiner's photos to Erie 10-17-94
P-25 Erie coverage denial Glenwood
P-26 Erie coverage denial Carlisle
P-27 Photos of Eugene Aufiero
Plaintiff speclficelly reserves the right to supplement this list with any
,
documents identified or referred to in discovery, formally or Informally
8
VII.
Plaintiff demands $70,000.00 to settle both claims. Defendants offer to
resolve this claim for the total sum of $10,000.00 extended on October 12, 1998
has been rejected as inadequate.
RESPECTFULLY SUBMITTED,
9
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HARRINGTON & CALDWELL, P.C.
By: ROGER J. HARRINGTON
IDENTIFICATION NUMBER: 09885
100 NORTH 17TH STREET, 15TH FL.
PHILADELPHIA, PA 19103
WIlW:1135
ATTORNEY FOR PLAINTIFFS
WILLIAM GOETZ
IN THE CUMBERLAND
COUNTY COURT OF
COMMON PLEAS
VB.
NO. 95-6790
ERIE INSURANCE
EXCHANGE
CERTIFICATION OF SERVICE
I, Roger J. Harrington, Esquire hereby certify that I served a true and
correct copy of the foregoing Plaintiff's Pre-Trial Memorandum by way of first
class United States Mail on this date to:
Thomas E. Brenner, Esquire
Goldberg, Katzman & Shipman, P.C.
320 Market Street
Strawberry Square
P.O. Box 1268
Harrisburg, PA 17108
This statement is made subject to the penalties of 18 Pa. C.S. Section
4904 relating to unsworn falsifications to authorities.
RESPECTFULLY SUBMITTED,
DATE: J - 7 -Cf.:i
~~.
RO J. HA 'I TON
Attorney for Plaintiffs
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FEB 2 2 19~J
Thomu E. Brenner, &quIre
GOlDBERG,lCATZMAN &. SHIPMAN. P.c.
P.O. Box 1268
Huriaburg. PA 17108.1268
Attorney 1.0. No: 32085
IN THE COURT OF COMMON PLEAS
CUMBERLAND COUNTY, PENNSYLVANIA
WILLIAM GOETZ,
Plaintiff
Case No: 95-6790
v.
ERIE INSURANCE EXCHANGE,
Defendant
DEFENDANT'S PRE-TRIAL MEMORANDUM
I. STATEMENT OF FACTS AS TO LIABILIlY:
This case involves a claim for damages to two properties, one located at 131-133
Glenwood Road, Dlllsburg, Pennsylvania, and the other located at 6599 Carlisle Pike,
Mechanlcsburg, Pennsylvania, both owned by the Plaintiff. Plaintiff is alleging loss and
damage to each property as the result of windstorm and/or the weight of ice, snow and/or
sleet occurring on or about January 17, 1994. In addition, Plaintiff is claiming that Erie
refused to pay these claims without reasonable basis in violation of 42 Pa. C.S. Section
8371.
Defendant is an insurance company which issued Plaintiff the "Ultrasure Package
Policy for Landlords" regarding both properties. As to the claims arising from the
Dlllsburg property, the provisions of the policy are set forth on pages 9 and 10 and
exclude claims for: (a) deterioration or depreciation; (b) settlement, cracking, shrinking,
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bulging or expansion; (c) wear and tear, rust or corrosion, mold or rotting; (d) latent or
hidden defects; (e) vermin or Insects; ({) arising from rain, snow or water damage not
arising from a covered loss arising from defective or Inadequate design, development of
spedficatlons, workmanship or construction; (g) arising from use of Improper materials
and construction; and (h) arising from Improper maintenance.
As to the dalms arising from the Mechanlcsburg property, they are exduded from
coverage based upon the language of the policy set forth on pages 8 and 9, Indudlng: (a)
deterioration or depredation; (b) settling, cracking, shrinking, bulging or expansion of
materials; (c) the loss not be caused by weight of ice or snow; and (d) the damage pre-
existed the alleged loss date of January 17, 1994.
Defendant acted in good faith in the investigation, evaluation and denial of
Plaintiffs daim. The Mechanicsburg claim was denied by letter of January 12, 1995,
and the DiUsburg claim was denied by letter of January 13, 1995. Defendant also hired
Eugene J. Aufiero &Assodates, Inc. to inspect and evaluate both properties to determine
if the alleged damage was caused by ice and snow. Mr. Aufiero's opinion is that the
conditions of the roof were not caused by ice and snow deposited on the buildings in the
winter of 1993-1994. The roof conditions are the result of deterioration and
construction defidendes. Plaintiffs claims do not constitute a covered loss under the
terms of the polides issued by Erie Insurance. Moreover, Mr. Aufiero was requested to
reinspect the properties after the deposition of the Plaintiff to evaluate the alleged
claims in light of the explanation provided and confirmed in a supplemental report that
the damage was not related to snow or stonn damage.
II. STATEMENT OF FACfS AS TO DAMAGES
To be provided by the Plaintiff
III. STATEMENT AS TO PRINCIPAL ISSUES OF LIABIUlY &. DAMAGES
1. Does the Plaintiff state claims that are covered under the Erie polley?
2. What damages were caused by snow or stonn damage?
3. Does Plaintiff state a claim for damages under 42 Pa. C.S.A. 58371?
IV. LEGAL ISSUES
1. Does the claims for damages under 42 Pa. C.S.A. 58371 need to be
bifurcated? Attached are two recent cases of the Superior Court indicating that
the issue of Bad Faith Is to be decided by the Court. Nealy v. State Fann. 695
A.2d 790 (Pa. Super, 1997) and Jones v. Liberty Mutual, slip opinion, No. 574
Pitts, 1997 (Superior Court, October 14, 1998)
V. IDENTllY OF WITNESSES
Mr. Gary Rinl
Mr. Joe Lapano
Mr. Eugene Aufiero
Shirley Cornman
Mr. Clarence Overcash, Jr,
Mr. William Goetz (As on cross-examination)
William Heatherly
And aIlindlviduals identified by Plaintiff.
VI. UST OF EXHIBITS
Photographs
Reports of Eugene Aufiero
Erie Documents
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Weather records
Erie Insurance pollcles
VII. STATUS OF SETl'LEMENT NEGOTIATIONS
Erie based on its investigation and the evaiuation of the building expert believes
this is a defensible claim, Based on the cost of defense of the claim, Erie has
offered $10,000.
Respectfully submitted,
Goldberg, Katzman &. Shipman, P.C.
Bk-~~~ -
Thomas E. Brenner, Esquire
Attorney 1.0. No. 32085
Attorneys for Defendant,
Erie Insurance Exchange
Date: ;J - I ~ 1 ~
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BR.E~A S. JONES A.'lD WILLIAM L.
SONES, ~JiUS.BAND.
. . Appellants
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: IN THE SUP!lUOR. COUR.T OF
: PENNSYLVANIA
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LlBER.1Y MU11.!AL tNSL'RANCE
OROUP,
No. 574 Plasbursh 1997
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IIppca1 from che Judamenl esuereclFcbtuar,y 27, 1997
In the Coun of COlM\Cl1lP1eu, CIYll Division
A11egh~y Co un!)'. No. GD 92:17845
/IF-IIORE: DEL SOLE. JOYCE and MONlEMURO.,JJ.
:-.mMORr\NDtl'M:
r:LEDI CCtOIEa 14. ~191
This is an appeal &om lhc final judPelll ohhe lriid court entered ia f'4vor
fJf .'PFcl1c:C. LIbert)' MUNlllnsurar:c~ Group. For !be reaSOM S~ forth below, w.
:1blrm In par. ~'\d \:ZCUtl: in pan. The re1lM1\t fact3 and proccc!urd hl~1)' Irc U
-.followl.
--
Appelllnl, Brenda Jones, WIS iAsIlre4 by .-\'PPC:llce, Libert)' Mutual
losurlUlce Oroup, when'she wai lnjUTed in I mblOrvihlcili'coliision CQ.Novemb~
1 O. 1987. The ClLS!: al bu arose frcmlhe .lIcpd nollpaymtnt or first piny medical
btn.,fi:s and wage loss l-enefil$ by Ap~I~. At the time of the ICcid.n~ Appellant
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wu employed as a maid fo~ Conle>'s MOlOr 1M. Acc:ordina to Appellant's wlie
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and ul:a1"'1 ro)nn, she workt:d Ipproxi:n2I1:I)' eiahlY (80) hours per month and ha4
mont.'ily elllJl1ngs of S26S.
.. Relir~d Justice usigncd to SlIperic:r Coun.
V"d
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Hde5l2l'v l5lSe l-e I-I
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--.. __ ..___ IW -..."c.,a;,,&_ ,...
,
. .'0 _ I . .... ... .
Appellee paId Appl!l1Glll'S medial bills ,nd Ion ~:res rot ddny-nwe (33)
months b.s.~'on'i determiutlon 11m she was dlablecl. On Nov.mber 21. 198..
Appellee hac! an independ~nt medl~1 e.urninaIioa (lME) performed on AppeUan~
to dclcnnine w~ethel her disability clllUinu.:d 10 exiSL Dr. YInd1us. che physician .
who ~ri'ormc.: the IV..s, ~clCrrninec! II1lt Appellau was no lonser dWbled.
. ,
,
."pptllec nol\elhe!es:s cODti."lucd \0 pay Io$t Wlits 4ftd.medical bCnc8ta1'or.
time b:lSed on,cilntlnWnI U'c:lur.ent received by Appella,nc. In Navembtt af 1990,
pursuant to thl lIOended Mot.or Vehicle FlnlllclaI RespDtlSlbllity LAW (MVPRL).
Appellee submitted Appellant's me4iC31 bills to lLn indepc:ndcnt peu r.vlew
oraanization (PR.O). Worldwidt: Smice;. Tho PR.C 'cieitimiiied th.t the medica!
"
U'utmotD;t was neither reasonable l'lCf ll(Ceumy,
Consiste:n With Ibis determination. ApPellee discontinued the paymeQ~ of
. .....welian;':J Ine:di.:Ill biJJ~ 25 of lh~ dale of the PRO decision in NO\'ember of \990.
',-:h . . _ __ .__ .
I! U'...t"o'l:r, ,\ppell~nt continued to rece:\'e medic:al ~tml!l"': without payment by
^p/>1'lIee, Appell~'t JjIC&wis~ continued 10 collect wage: Ion paym~ts. Appellee
t<lq:Jt:Shld relLSon:able proof of disability to determine their obliplion :0 concinua
p3~ ing for Appellant's w3ae loss, Appellee 'received. the lasi subtilinien of proof
of disability ~rtaining to wage loss be~fiu, which indica~d disability through
. .
loJlle 21, 1990. .6"fier 1une 21. 1990 at'.d rhrOU"&h sn=t"on99r;eft'oris by Appell~
tD oblain :t st3temcnt frOct the trt3tin~ physicians that the disability was on-Ioinl
.
.J-
S'd
~ sc:v LIL "1Vl~ Al~ I'Ql:I
WdI2lI'V I$l58I-el-1
DI-ll-l~ 011.1
'rDI"Nlkolaul . Nohlnadal
TI7ZIIIII1
T-III '.IIIZI '-liD
'..~
I .~/,.'..
.-
J. A260J 1198.~'
"
wcr./'fNli~~i.t:~pp.llc. did "at reccin collftnmdoll ot the
Ihereafle'r'-aerntcl:.w.se loss paYlI\cnu lL$ ornove~ber 6, 1991.
, .
d1a1sIli,~. and.
,
Afte,r subminin8 further mcdlc:31 billa, Appellee had Worldwid. S.",lces
perform a ICc:ond PRO in Oc\Obu of (99). Similar to &hll first PRO. Worldwide
S~f"lic., concluded thal the l7e:nmmt W3S noc rusQnabfe Qr medically n.r-sp\'Y.
, I .. . . . . . "'.'.,
. . I I
.in responn, Appell!lll filed chis l:lwsuiL In pteFation fOr ~. trtal. Apptll.e had
Cr. BUT)' Riemer perfonn l1/l IME. Coocrary Co the prior cIclermlnadons. Dr.
f{J(:nc:. :our.d App-.Uatll'S diSllbiiity cOD1inue~. .Based on 1his new conclusiQn,
App.=Ilee paid all the medical bills and wa~ loss betti,s p.evlously cleaied as wcll
as the statutorily req,uired inwut with ntpnls 10 the ncw minimum wap rate.
Appcllanl rejecled paymenl conlending Appell.. imprcp,erly c:aJculatecl tha num1lcr
of huurs .fot wage less p3)'Ill.nl. .
Al thlt cO:Il:IUS:OIl of the jury m2II on Oc:ttlber 11, 19516, the: jury relUmcd a
__ ...___ .____ . ... 0
v~rdlc.l for .~P?el!ee wed on a sel of dine (3) intelTogatories consisrina or
. . ...0 ...
questions'relatlng 10 lh'ol :Iull1btr ~r bours worked, the reasonableness ot .~ppeUllll
.
ir. den)'lng Appclb.."It's claim for IQSt ~ and the rOuonablcaesJ exercised by
Appellee in de."lying Appellan~s =I:slm far lIltdlcal bllllefIts. On Glc:1ober 30, 1996.
UlC trial court found far Appell~e on 1h4 42 Pa. C.S.A. f83?1 bad ~th count. The
lri:s~ COUl't en:e:ed final judgment an ~ebNary 22, 1~97. AppGllam ,im~ly
ap~alec!.
.
. .
-:> -
.. . 0 o' ...
9'd
9teL 9C:V LLL "'J\110l:13100 A..I.~ ~
HdI2lI''P ee8l-eL-L
01-11-11 DI147 ',Dl"Mlkallul' Hahlnldll
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. .~.. ~...
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'0' ,... .
,
7171111111 T-III '.14111 ..110
- ..... ........ IU ~t&'~"l_ ....
. .
....
.' . to "I
. ~'"
'APjiel~arit .~I'" the (ollowina. lsaues for OUf ~Ie""~ (I) whe1her
....~ '
/. ~ '. .'
APPc1i'a!;t'S C Ii m under 4:1 Pa. C.S.A. i8371 should have been JubmlM4 ~ the
.
jW')'; (~) whether tho uial Judll erred In llloldInS !he verdIcl; (j) whetllu!be mal
, '
juc!ae en:lld in finding AppaUec could discontinue pa)'ln'S rlnt pll'l) Yr':If,e Iou
payrntnlS abJ.:nt an IME \!J\dcr pnlvislons (o\:lld within the Unfair tNUrance
Pr3ct\l:es Act; and (4) wh.",'1cr me mil court en-cd in inslnll:W1j the jury to me
CUCC:I that Ihe wlge Iou ben.fits could be denied absent III !ME..
AppeU:uu's firu issue c.lltelS wund lb. d.linitlon otthe lmn "colln".In 41
Pa. C,S.A. iBj7\ wbich ddIne~w remedies .fat. letS. of. bad faith. AppeJlant
cor-tends lhe term ~coun. roien to the jury whUe Appellee &,rg\1cs the tenD refers to
\he jl,!r.!Zc, . Jury uiaJs a:= not available in proceedings created by st&lUle unless Ib,
proeeedlng hu a coaunon law basis or unless tho StaM. txprasly or Impliedly so
.JraviclesL_~I.~. Cane CDlpllrtldDIf, 546 A.2d 121L-m2 (pa. 9'3'8r.
1988). Out Supreme Court b:ss h.:ld thallh.::r= is na cammon law action for bad
iaith concuct by an insurer. D'AmbrDsio~, Penmylvania NadDlltll Mlltllal
. ,
Jruuront:tl CampD"~, 494 P:l. soL m .~2d 966. Howevr., SlaMpry authonty is
iO\lnc w:thir. 41 Pa. C,S..'\" ~8371 which provides. in relevant pan:'
Ie an action arising ~4~1ll i~c~ PO~~!=.Y..~~~ ~o~ findl
that die insurer has aC:led in bad faith ltlWl1rd th. Insured the
,"OUrl mny talcllllll aCthe followins acUonr. ...
.4 -
L'd
~ ~ LIL '1VI~ AJ.l:ScOjcj ~
HdII'V 6661-EI-1
7172111111
T-III '.11111 '-110
01-11-11 01147 Frlll"lllkolaUl & Hohanadal
, ., tt.~.
.': .\"~.~' '.
. "' I" II ,
J, A:!603i~8:':~'
.
.
'"
Thllllenn "c:oun" Is deftnl!d III 42 pa. C.S,A. f 101: "Include. lAY one or man: of
lh~ judiilS- b,'iil' coun who are IUrbOriad by general rule cr rule of court. or by
,
law or us.ge, 10 exan:ise ml! p~wers orUst ~un In 1hc IUImo oCthe c:ourt.. S.crJon
. .
IQ2 cleuly does JW)1 refer to the jury wl1bin the doflnillort. Furthermore, we refiw:
, ,
. '
... "0
.'
Iq infer such a readinJ.
The pbln words of a SW\1tc'cannol be disregarded where me lanauI.c Is
,
.
tree :md clur from all !mblguitlu. Commo"wultn \I, Hflbltllng, 1578 A.2d '9~,
79~ (P". Super. 1996). II i~ only when a swute it une\e:u that we may em'bark
IIplJlI d:l: wi. or'as.:er,Aining 1M IMt~nl of the legislature by n:viewing the ~ecwity
. (:1' Ihe .1Ct, tile' objeclive 10 blt obcaln.r!, lbe circulZlSl&n<:e, under wh,icll 11 \Va
r:n:4Cted I:ld che mischief 10 be remedied. U. A plain t1ea&g of the IUMe
;:1e3riy indicates the term eour. refers to the juda- and ther=fore, 18371 does not
....,.. ;:re~te the rishl J~llJury trial. Set olsfJ You'!l# B,othen &....cQ...1M. " r{ZlIa
oW' .... ..
Worldwide l"suranctl Company, &S:1 F. Supp. 1468, 1473-1476 (E.D. 1994) .
i:l.!lhough not bindIng pr"ecedant 011. our CourT. we arc p4l'Sua'c!ed by the decision of .
the federal cQuns findin& mat t8371 td'crs to the judge rather than the jury. an~ i~
is ~Qlely uU'der the powers of the Seventh Amendment. which dOes' not apply to
, .
_ stlIlc: eoufts: tJ:Ial a jury is require<! ,to decide lht issue ofbJd faith).
A.ppellan. :alleges tht aial jucsc errt:d in Dltl1di:1g the verdla. We fq\d no
.
error it: thll cisl Judge's decision to mold 1ha verelict to I finding for defendants.
"s-
. ,
. '
S'd
9l:0.t. ~ /.1 L 1\'10lS'HJ0 Al.l:l3dOl:1d I'Oi:/
WdII'V 6S61-E:1-1
FrOl"NlkDllul I KDhenldel
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f
I
~1.11-1~ 01141
I ',.. OJ . .., . I .
.' ..
.... ,II
,"to.
J. A26031~i.: .
AItJ\ClIlII1'~';;~~~~ Is not cntldtd In II Yel'dict, it I. ~ual thar \h. jury'.
'. -tP...,'lrIll\'k".liQll).: . '
Intemion be tree and clear of ambiJuity. RlISldqffv. oJ)~JJDb Trail"", '"c.. 380
. .
,o\,2d ~Sl, 4S3 (Pa. Super, )977). .VcrdiClS which ~ not tuhnkaJly COrrect in
JOnr., but whlc:h rumife.u a clear Intent OIl dill pan or the jury, ma'y be conectcd
.'
"" hhlll:t ra~lIll.1 filnhet jwy d.=l/beradons or.,a ~ew /rial.. rd.
In the cue lU bar, the ;..;al tOUn molded rha verdict to ~rcu lb, crear
'imcl~ll?r \he jlU)'. ^ Nlvlew of \he entire record reYeals that the employer lndlcded
....aSClI VoIer. peid for I1I'Proximlltly (Wenty f20)' ~ol.!rs .a..w~~k In the amourn of
" . .
Sil(i8 per month, N.T. 1017/96 at S31. Critical ttl ~ur detennination., the .ix (6)
IIl/lenJ.d complaints filed by Ap~lIar.l indic:md ~ SlIIll" lUl'Iount which Is baslt1
on a monthly Jigurc and Qat thc nUIr.her of hours per wce:k worked. Appellant
herself llfSdflc:1l we she C3mcd S26a pet mpntb. N.T. JO/6I96 at 267-~68.
-:-,.o\~p~l!an; 'lIccc:pt~cHhis lIm~l.lnt far L'liny-rIIree' (33) months-abutlt. an)'..cfi'pllt..
Jd, al 533. lr is llppBnnc wt the trial ccut foane! thAt . verdict based on "thl
number of hours worked. liS opposed to tht mon1hly figure, was ambi;uous and
accordinlly molded the verdict !o cOrUol'lll1O the evidence and Vie jury's Intent.
. , .
, .
The trl31 cOllrt properly e:<erclsed i1s discreriaa In so doing.
. .. . ",., ..... . _" .. ._, ,0. .
Apptll:utl ne.'<t allele" i."\ her lhin! ~ f'ounh claims that the trial coun .lte.!
:n t1nding Appell.:. could discontinue payinl Jlrst pany wllge Joss payments llbleni
an IMe: 3I1d insrrucUnB the jury accordlnaty. III support of 1his ul\UT1enr.
-6-
S'd
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Hdll''V 6661-€I-l
,
.
"
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TI fUll II I
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01-11-11 01141
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f.... .
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Appcllltl~ ~o_iIs lhll Unr.ir Inswmct PracrlClla ACt requires a lUIQMbla
, ........~2,.".,..~
lnvestlptlon prior to IcnnlnatlnJ bmlclics. W. do not mch rhe mttlu ot Ihcse
.
Issuell firidlng rhe)' are not propomy Wore tIIiJ caun.
.' ...1 .... .. ",
Initially we nacc rhar an obj=OD lO lack of SUbJCCl inaner Jurisdlcciop can
r.ever bot waivtd and ntA)' b.e raised &r llII)' Sl3p of 1M 'proc:eedInas by tbe pania or
by the ccun lua Jpon/e. 0"1/11 II. B1ir10D1I,672 A..2d 823. 8:!4-82S cPa. Super.
1996). A.J racogn::ed by this Coun:
" A cause of actioll initialed UDder &he Unfair WUI'llftce Practices
A!;t is llClt an mOD properly wilhin our j urisdlc:tlon. These
Slannory provisions are entorced by' the lI\suranca
Commlnion.er of the ComtnClllwahh' who is empowered to
exsmine lItld Invtsdpte the aff'aIts of evezy person in thil stalil
10 d~em1ine whether lhe Un&if lnSw=el Pr3etlecs At:c has
ceen viollltd.
Rudy ", P~nnDdt InsllT(J1/ce AgIJlC],lnc.. 529,A,2d 471, 478 cpa. Super. 1987).
--Co:1sea.u~ntJ);.thcnnll coun laeked juns"di'citon 10 entCrain mCle issues ana WI
,neale on l!-"':5 around. Slit Jlosln \'. ~/cr, 549 "\,2d 561, S62 (finelina thac where
subject m3nl:r jur:sdietion is I:u:ldnl. n:medl' is to VaQ1:C Judgment): Findin. no
basis upon which to disl.urb the firidings of 1he Iri:d caun, we \'Ocate only with
ro:g:s:~ 10 the Unf:lir L"J:Iunnee Jlnclices AC:I provisions and amnn in .11 other
respl:ctS.
.
-7.-
.... ;........
01"d
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Hdel'" ElSBl-El-l
01-11-11 01141
'rOl"Mlkallul . Mahlnld,1
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71111I1111 1-111 '.111I1 ,.110
-, - - .1. ~'n'~ ".12
,
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J, '\26031/98
"
Ju4SnllnC affirmed In part 11\4 vacaed whh r.lJ)CCl to pnwl.illu rwlallnl 10
,
UnCalr lnauranc:e Practices Acr.
.
DEL SOLE. J. tiles Dj,SCJ1ling Melllorancl\an.
"
-' ......
.
"
..
'.
.
., .... .1' ..' ......"
"
-s-
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9Z2L S!:V LLL "'1\II~ JoJ~ ~
~L'" 19l!ll9L-SL-1
al.II~1I 01141 ',orlllkollUl' Hohtnadal
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flfmllll
,-I" ',11111 ,.110
. .--
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J. A26031/98"
. "",..
BRENDA J:~SoNl~ AND
WIl.UAM L:. 'iONES; MER HUSBAND.
...,'~~~jt.o .
. Appcll'-a
,
.
.
.
IN THE SUPERIOR COURT 01"
PiNNSVLVANlA
.
,
v.
. ' . to ..
ueeR.TY MUTUAL. INSURANCE
GROUP,
~pella"f
No. 51<4 PIttsburgh 199'
Appeal from the Judgment entered Febru..ry 17, 1997
ill the Court of Common Pleas of Allegheny Counl:V,
Civil,.No. GD 92-17845.
eeFORE: eEL SOle, JOYCE and MONTEMI:JRO', JJ.
DISSI!NilNG MEMORANDUM 8V DEL SOLE, J.:
The' majority /'\lIes that Appellant's claIm for bad talth under 42
Pa.C.S.A. I 8371 was not entitled to go to a' jury. In 'suppgrt Ie cit.. to
., . . ..' ..
Murphy v. Qrtax CDTPtJl'8tion, S~!i A.2,d ~217 (pa .Super. 1988) wherein
-..-----
, this C:01ln: wrote. .U)urv crial~' are not 1l~lIable In p~eedfngs cr~.t.cl bV
s~etl.:te unless the proceedlr.g has I common law basis or unles. the statute
.
a:<preS!IV or lmpnedly SG PI'O\id~: ld. at 1222. I conl:lud'e that 42
, .
PB.C.S.A. & '8371 not only provides for It Jury trial by ir.s language, but 1110
, .
r.:'lt' ~tctutory cause of llC\len J:l'llvlded for In g 8372. has a Com men law basis
and. therefore, It Jury trial must~ a/'forded to Appellants.
--
Rat.reo JuS::c:t assignee to the S\:;er:at C:ourt,
.
.... ........
~l.d
~ ~ LIL "WIO~'im }I~ 1'0:1.,,/
HdEI''V SS81-E:1-1
Ol-n-II
01141 Frorlllkahul' Mahln,d,1
...-.. ......"'....."" -.....,. ....-.. ....-
, . . tj;.w.,
. ' .
7172111I11 T-III ',UIZ. F-IIO
'~...... -.... IU ~'n"DmIII ......
.
",
J. A25011/98 .
The maJoClt.Y cOIIcludH the lenn, -eaurt'" refers only to . SUdge, and
,
""'.~"-...."""':":A4t...". .
not'to a Jury, Ind, th.refore ~ 8371 d~ not create Che right to I Jury trial_ .
- "
I d'sagl'l.. The tlrm "court. refers to' Che farum, :Che eourts of cornman
~Ieas, the courts of general..jurisdlction, which have tI'Idltlonl/ly In the
hisrory of the Commonwealth been th~ forum' fer reso'utfon of contract
C:isputcs. Thus, reference to' tho .couit-" as the 'prum for determlnlrlf
,
wnether an InSlU8r "as acted in bad faith do~ not' ellm'"at. a p'llnl:l"..
,
r1tJht Eo a fury trIa'
-
Fur-J1ermore, this is not a new cause of Z1c:t'on. Rather, It' Is a
:;"':'(l,Otldillg with a common r.w bllSIs far a cacse of action baSed on an
I~,(~g;ous brl!BCIl uf concract. A pleintiff who brings a breach of contract
ll.:t!o;; has both a statQ c:onstlwticnal rfgh~ to 1I jury trial under Artfcl. 1
Sact:on 6 of the Pennsylvania Col\StJtutlon as well'lIs a right to . jury trial
, '
under the Seventh Amendment ta the. United StacK <<:gnsututia'" as
_..__ __0._ .
re::ogni%lid by the federal courts.
!;'1 YQunl$ al'orh,us & co., Ztl<:. V. C:lgna Worldwide InsUl'Bnt.
Comp.ny, 882 F..Supp. 1468,,14?3-1476 (i.e. 1994) the dlstrltt court held
thl! Seventh Amendment to the Unjt~ States.,Constltutlon -mandata. th,t
lJ_lnltl..,. dl,m."ges be decfded t1y a Jury, The CClurt nctlld that', "[pJr.lor to
,
m~'9l:r [01 the courts of law and equitY), an' action far br.ach af cantra~
norm;:lIy can$tltlJt!d a legal c1eim.' 1d. at 1474.. tn condudlng that a claim
tar punitive damages Is a legal 'claim, the court wrote: "(t]he Supreme Court
.
.:2 -
El'd
!20L 9<:v LIL iVIota>HJO ,Ul:l:3c:DlcI ~
Hdel'l' l!581-e1-1
01-15-88 08148
FrOl"Nlkolaua I Kohanadal
mZU1111
T-III ',11111 '-180
.'
.
. t' .
J, A26031/98 :~
'"I"'
- .
has exPlained:'!;. '[r]emedla In~ncled to punls" culpable Individual., I'
_.,,'1
oprijts"~d'~t\;='lntended to simply cxtnct'comp.nsatlon or restore statu.
. '
qJ,lO, were Issued bv ccurts Q~ law, not courts 9~,eq~~.'," VQuni., sUpta at
14'''', (quoting Tull v. united searas, /fS!. U.S,'412, 417-418, 107 S.c:t.
, '
1831, 18JS, 95 L.EcUd 365 (1967)). Acccrdlngly, Che court held the request
.
far punitive' damagl!lS c~nstltute5 a legal dlllm and, therercre, the Seventh
Arnt:!ndment to the United states Constlt\ltlon p~rmits a plalntll"l' to present
..
~I'(:lr c:lllm 10r punltlva damages to II jury. Therefore, while tho COLli'\: found
Ih4' torm, "court", &s IIsea In 9 8371 r.(ar9 to a judge Sitting without. jury,
II. held that: under operation ot the .Seventh ...mendment to. the United StJltes
COllscltutlon, ."~hen a feaeral court actio? pursuanc to :section 8371 .eeles
punitive demages a partY 15 entitled to a jury t:l'lal on that issue and on bad
faith." Younls, sup'. at 14;5, See also Klinger v. State P.rm Mutual
. ..' . .
Automobile Insu~n~. Co., 115 F.3d ~o, 236 311I elr. 1991) (conduding
- -.... .
, '
tnllt 6 ~ 83'71 claim for punitiv~ damagllS is' not' a new cause of action ,but
one :hi!lt Is analogous to a liumber ot tart actions I'!eognl~ed lilt common law
,
wnere the relief sought, actual and punil:lve damages, IS the traditional relief
.
erfered In courtS of' law, theretlv requiring bill by jury liS guaranteed by the
S,,"ench Amendment of our federal canc:iMion).
,
Accordingly, I would hold APpell!nf'~ fi '8371 claim for punitive
. 0' ..
ClamClgell Is not a new causa of ac:tlon, but rather an enhi'lncement or an
. .
#'. .'....
.3.
'll'l'd
smL ~ LlL "'TdIOl:B'H)O ,ul:GcD:ld 1<01.I
HdeI''II' 6661-EI~1
. 01-11-41 01110
.
'rOl"Nlkallul I Mahlnldel
llfZlIlIl1
1-111 MIIII ,-m
J,A26Q31/gg
.
existing cau.. of action tor breach of contract and arrt.. wltn It bOth .
stat. end federal con.tltutlonal riGht to a jury trial.
.
,
. .
..
, '
, .
.
-4-
9l"d
"" TI'IT.::I PCf:Il' C ...
9l!:l1lL !ll:V L IL -nflOl:l3'lCJ). ~ I'Ol:I HdV l . V eee l-E: I-I
792 I'll.
liD5 ATI.ANTIC Ut:I'OUn:Jt, 2d st:lm:s
,I
I'ollnsylvllnlll jmi.pnldonee 111111"' in Ihe hili.
IInee." ApJlCllanlK' brief a117.
AIl.cr eiUng to a plelhom of ell.elllW which,
al'Jlllably, sUPJlOrlK litis brolld proIKl.IUOII,
appellnnlK cllllm IImllhe h..lllnl al'I","lpre.-
enls such a sllualloll becall.. "[llho I..uo of
altoehment has yet to bo addroK..d by any
court." ApJlCI\nnls' brlof at 16. Thl., how-
ever, Is ahnply not tho c.... IndL'Cd, In lighl
of the unique facls aurroundillg Ihe pre..nl
apJlCnI, we I\l'I! at a 10.. to understond how
this avennont can be made.
As staled, prior to OI'JlIImenl In the lower
court, tho partlca agreed to awail the final
dlsJlOslllon In Schultz. BUPm, wherein a panel
of this Court held that., absenl an nlleguUon
that a aJlCclfic provision In an insurance JIOII-
cy contravenca public JIOlicy, courts lack the
jurisdlcUon to review andlar dislurb an arbl-
Imllon award. Thcrefore, becaase 01'1"'1-
lanls' OI'JlIIment., that unapJlCllded f 1734
woIver fonna were unonforeeable, lISllertcd
only a genernl, amorphous cllllm couched In
public JIOllcy' Iangullge, the arbiwra' awanl
was not reviewable by our courts.
Although ApJlCllnnlK couched Iheir claims
to tho trial 'court In wnns of a "public
JIOllcy" OI'JlIImenl, they did nolchallenge a
provision br wnn la their JIOlicy IUI beiag
contrary to the public policy of this Com-
monwenlth. Rather, ApJlCllanlK sought to
have tho' court reconsider the claims they
made before the arbitraUon panel in which
they OI'JlIIcd that a signed waiver should
not be enforced because the agent did riot
take swps to ensure that ApJlCllanls read
and undcrstood ils wnns before signing,
and because thc woIver was not att.ached
to the JIOUcy eventunlly Issued. Il hus
nover been clnlmed that tho woIver or
JIOllcy language ltaclf WIUI contrary to the
public JIOlicy of lIt1a Commonwealth. For
1I,la reuson the trial court correclly con-
cluded that it did not have the liberty to
disturb the arbitrator'a ruling bused UJlOn
tho clnhns ndacd by ApJlCllanls.
Schuu:, 443 pa.SuJlCr. al tl63-OO4, G63 A.2d
at 169.
The Instont apJlCnI Is factually and legolly
Indistinguishable from Schult:. It followa,
therefore, that the dlsJlO8IUon of tI,o present
cllSC Is controlled by the precedent estab.
lished III SC/IllIt: alld thllt 111'1",111111""
I..ue 011 111'1"'111 Is without morlt. Tho
court com'CUy IIppliod tho relevanl' 1 '
I.rlnelplea to U.. file'" of the present case'
did not IIbu.. IlK dlscreUolI in dewrml
thllt it WI" will,oul jurisdiction to review
IIrhlwra' aWI\l'lI. " I
I
121 Next, we addresa apJlCllalllll' 'c
Ihat 11,0 trial court erred in holding that
fallll claims mlsClI pursuant to 42 Pa.C"
f 8371 muat be IiUgulcd In tho courts':
not before arbltmllon panels. Furth.i,'
JlCllanlK usscrt that the trinl court e
holding that the arbiters' diaJlOaiUon of'
bad faith l88ue wus gratuitous and, the...~
did not amount to an 8pJlCnlablo aniiJ'
decree from which an apJlCal may be:
,. " II
As previoualy detaUed, nlthough apJlC
prewnled the arbiwrs with a bad faith c '
the panel dewnnined that it WII8 wiui'
jarlsdlcUon to decide auch an Issue,'
therefore, refused to allow prescntaU~~l,
lc8Umony or evidence on the Issue. ,!;l,P
thelO88, although reiterating IlK JIOsiUon
fi 8371 claims cannot be prcscnled at .rbi
Uon hearings, the arblwrs' reJlOrt,
menwd UJlOn whether they believ~,
State Farm acted In bad faith. ' ,,:{t"
The Pennsylvania bad faith statute.
118 follows:
I 8371, Actions on Insurance po1lel '
In an acUon arising undcr an Ins'
JIOlicy, if the Court finds that the 1M
hus ncled In bad faith toward the Ins '
the court may take all of the fall" '
acUons: ,1"'1
(t) Award Interest an the amount
claim from tho daw the claim was'maa
the Insured 10 an omount equnl' '
prime rate of Inwrest plus 3%. :on
(2) Award punlUve damages agai
inRurer. '
(3) Asao88 court cosls and
agolnstthe Insurer.
42 Pa.C.S.A. f 8371. 'Ul,
In InwrpreUng this statuw, this CO
consistenlly held thaI claims brought"
under arc dlsUnct from the underlying
tmetual insurance claims from which th
"ute arose. Sr.e, r.g.. I/omana ", Nol'
.1'"11I01 ~',
r,t5. MD. 6
,', I'lIrod~
p..sul",r.
11!l\~n, Rt
dent cause
dependant
trilllllt all,
While It
in!\ured ml
..od upon
HI~ or u pa
undecided
.I,'eidod b)
must be }t
it ,.ourt..1
Uolh th
courts hu\
imrin~c if
,,( \ R:l7\.
t1l'cided th
liun panel
t'ntt'rtain I
crdtion. WI
to decide i
in our tria
Our res
nonn, viM
C'Omrncncc
",ilhout fil
Although
nur slale
majority'
motion b'
diver.;ily j
law inwl'J
",lalc law
rcmaing E
prctalion
when del
Set'. e.g., j
172,675 fl
1. hisc1
cmaunh
COUt1 tho
rd an Is
Wilh 1"e!o1
presents
3. Uur rc
~'- I'nld~,
-H7 Pa:
which n
-
":'> ';+''r."f" '::~'''''.''''!:' ';;.".,
CERTIFICATE OF SERVICE
I hereby certify that I served a true and correct copy of the foregoing Pre-Trial
Memorandum was served upon the following by depositing same Into the United States
Mall, first.class mall, postage pre-pald to:
Roger J. Harrington, Esquire
Harrington &. Caldwell, P.C.
Robert Morris Building
100 North 17th Street, 15th Floor
Philadelphia, PA 19103
GOLDBERG, KArZ~ &. SHIPMAN, P,C,
BY, Cl;">-IA--
THOMAS E. BRENNER, ESQUIRE
Attorney for Defendant Erie
Insurance Exchange
Date:
J -/7'9 ~
15651.1
O'BRIEN and O'BRIEN, ASSOCIATES
By: ROGER J. HARRINGTON
IDENTIFICATION NUMBER: 09885
1260 SUBURBAN STATION BLDG.
PHILADELPHIA, PA 19103
i2 I 5)567.738 I
WILLIAM GOETZ
326 S, 10th Street
Lemoyne, PA 17043
ATTORNEY FOR PLAINTIFF
VI.
IN THE CUMBERLAND
COUNTY COURT OF
COMMON PLEAS
ERIE INSURANCE
EXCHANGE, ERIE
INSURANCE GROUP
101 Erie Insurance Place
Erie, PA 16530
NO. 7-'.]- &/9~
(J Lv..: L
dL,L,
JURY TRIAL
DEMANDED
COMPLAINT IN CIVIL ACTION
NOTICE
You have bet" sued In court. If you wllh to defend IQII"s. th, c1.lm. Itt forth In the followIng page.. you must ..Ice Kllon
within twentv 120t dey. ,ft" this compl,ln. end notlcl If. liNed, by .nterlng . written applar.nee personally Dr by IUorney .nd
filing In writing with th, CDUn your def."IeI or objKUonl to the cl.lmlllt forth 8glJnlt you. Vou Irt w.rntd thet If you f.1I to do
10 thl all milV' proceed without you end I Judgment may be en'lred .;alnlt you by the court without (urlhlr notice for .ny money
cf,lmed In th, campl.lnt or for .ny ath.r cl.lm or rene' requuttd by thl plaintiff. You filly 1018 money Dr property or other rlghn
Impol'llnllO 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,
N....
Add_
City
ClJnberland County lawyer Referral Service
Cl.lnberland County Coo.rthouse
Carlisle, PA 17013 Tel. No, 717-240-6200
,,"--,"
\.
O'BRIEN and O'BRIEN, ASSOCIATES
By: ROGER 1. HARRINGTON
IDENTIFICATION NUMBER: 09885
1160 SUBURBAN STATION BLDG,
PIlILADELPHIA, PA 19103
(215)567-7381
WILLIAM GOETZ
326 S. 10th Street
Lemoyne, PA 17043
ATTORNEYFORP~NnFF
VI,
IN THE CUMBERLAND
COUNTY COURT OF
COMMON PLEAS
ERIE INSURANCE
EXCHANGE, ERIE
INSURANCE GROUP
101 Erie Insurance Place
Erie, PA 16530
NO.
JURY TRIAL
DEMANDED
COMPLAINT IN CIVIL ACTION
COUNT I
I. Plaintiff is an adult individual who lives at the above-captioned address; and at
aIltimes relevant hereto he was the owner of investment properties at 131 and 133
Glenwood Road, Dillsburg, Pennsylvania and at 6599 Carlisle Pike, Mechanicsburg,
PeMsylvania.
2. Defendant is an insurance company regularly engaged in the business of selling
insurance in York County and it maintains offices at the above-captioned address.
3. At all times relevant hereto, plaintift's Dillsburg properties were insured under
an "Ultrasure Package Policy for Landlords" issued to plaintiff by the defendant in
exchange for valuable consideration. Please see a true and correct copy of the insurance
policy attached hereto as Exhibit" A".
,
"
4. On or about January 17, 1994, plaintift's said properties sustained loss and
damage in the approximate amount of$62,905.83 as a result of windstorm and/or the
weight of ice, snow and/or sleet, covered perils under the aforesaid policy; and, plaintiff
also incurred loss of rents and emergency repair costs to prevent further damage to his
property.
5. Plaintiff complied with all policy conditions precedent to full and complete
recovery under Ihe policy and despite demand for reimbursement defendant has refused to
fully and fairly compensate plaintiff for his losses.
6. Defendant has frivolously and without reasonable basis refused to fully and
fairly compensate plaintiff for this loss in violation of 42 Pa. C.S. Section 8371.
WHEREFORE, plaintiff prays for judgment in his favor and against defendant for
a sum in the approximate amount ofS62,905.83 plus costs, attorney fees and whatever
other relief the court deems just and proper.
COUNT II
7. Plaintiff incorporates by reference paragraphs one (1) through six (6) as ifset
forth herein at length.
8. At all times relevant hereto, plain tift's Mechanicsburg property was also insured
under defendant's "Ultrasure Package Policy For Landlord" issued to plaintiff in exchange
for valuable consideration, and a lrue and correct copy of this policy is attached as Exhibit
"811,
9. On or about January 17, 1994, while the policy was in full force and effect,
plaintift's Mechanicsburg sustained extensive loss and damage as a result ofwindstonn
and/or Ihe weight of ice, snow and/or sleet, covered perils under the aforesaid policy; and
plaintift's damages from this loss are in the approximate amount of$7,564.83; and plaintiff
also incurred loss of rents and emergency repair costs to prevent further damage to his
property.
j
I
2
,
....
10. Plaintiff complied with all policy conditions precedent to full and complete
recovery under the policy and despite demand for reimbursement defendant has refused to
fully and fairly compensate plaintiff for his losses.
II. Defendant hl!S fiivolously and without reasonable basis refused to fully and
fairly compensate plaintiff for this loss in violation of42 Pa. C.S. Section 8371.
WHEREFORE, plaintiff prays for judgment in his favor and against defendant for
a sum in the approximate amount ofS7,564.83 plus costs, attorney fees and whatever
other relief the court deems just and proper.
RESPECTFULLY SUBMITIED,
~
A~ -
ROGER 1. GTON
Attorney t1 Plaintiff
3
ERIE INSURANCE EXCHANGE
SHINER INSURANCEAGENCYULTRASURE POLICY
1001 S, Market Suet
Mechanlcsburg, PA 1 j065
(717) 766-12.00
'1\ ~~~RANCE
GROUP
'~ 100 Ene 'ns PI RENEWAL CERTIFICATE
,~ Erie. PA 16530
ERIE.
~. '~..:~?o/ii"'J~_"~"V:':"','<i:'AGENT ' ' "."., , :' "",,;,,".
.....' ...._!f::~~~(C)o'":"l~:'I;'........." . .
. 'ITEM 2. POLICV PERIOD '" ' POLlCV NUMBER
07/17/93 TO 07/17/94 Q43 1770019 H
ITEM 3. OTHER INTEREST
AA7507 RONALD L SHINER
'~,i;.r'i~:.dtITEM'1!NAMED INSURED AND ADDRESS
WILLIAM B GOETZ
326 SlOTH ST
LEKOYNE PA 17043-1798
POLICY PERIOD BEGINS AND ENDS AT 12.01 A.M. STANDARD TIME AT THE STATED
ADDRESS OF THE NAMED INSURED.
THE INSURANCE APPLI~S TO THOSE PREMISES DESCRIBED BELOW. THIS IS SUBJECT
TO ALL APPLICABLE TERMS OF THE POLICY AND ATTACHED FORMS AND ENDORSEMENTS.
LOCATION OF PREMISES OCCUPANCY/OPERATIONS
--------------------
--------------------
12 UNIT APARTMENT BLDG
LOC l-BLDG 1- 133 GLENWOOD RD, YORK,
YORK CO, PA 17019
LOC l-BLDG 2- 1aa GLENWOOD RD, YORK,
10\ YORK CO, PA 17019
r.u~nell _ .~~ \JSC::D ':,.fI-.,.
I"S.L /..t
INTEREST OF NAMED INSURED IN SUCH PREMISES- OWNER
DEDUCTIBLE (SECTION I ONLY) $ 500
R
__________________________________________T------------------------------------
, ' .
SECTION I-PROPERTY PROTECTION
-------------------------------------------------------------------------------
COVERAGES
LOC BLDG
AMOUNT OF INSURANCE
PREMIUMS
-------------------------------------------------------------------------------
$ 235,000 $
$ 92,000 $
$ $
-------------------------------------------------------------------------------
B. BUS I NESS PERSONAL $ $
PROPERTY $ $
$ $
-A. BUILDING
1
1
1
2
-------------------------------------------------------------------------------
C. INCOME PROTECTION
ACTUAL LOSS UP TO 12 MONTHS
INCLUDED
,
-------------------------------------------------------------------------------
FI RST MORTGAGEE
DAUPHIN DEPOSIT BANK & TRUST
POBOX 4800
HARRISBURG PA 17111-0800
..,~.:~-s:.,:
a;;.,..&l"^'~'~.:!f "'",,
'.,.'...:.'d'VU...I'I" "
,.;,;."~'IHI -
I' ..,.~.
'0 '....'... _, "" ,.,.~..t
:':_""_'--{}'_ t. '
INCL.
INCL.
05/18/93
006035
ISEE REI/ERSE SIOEI
'I"~~~RANCE
~ GROUP
'~I'ooE""ns PI RENEWAL CERTIFICATE
,~ Ene. PA 16530
ERIE,
. ',;f.,~jl::'jO.__~~';~ :.AGENT i:~~\C1li.'\~Jl\<:i/.<:, \I~:ITEM 2. POLICY PERIOD POLICY NUMBER
I AA7507 RONALD L SHINER I 07/17/93 TO 07/17/9. I a.3 1770019 H
...'~'!\l'k;\~.."ITEM.1:NAMED INSURED AND ADDRESS , W~"'.."",~ ITEM 3. OTHER INTEREST
ERIE INSURANCE EXCHANGE
ULTRA SURE POLICY
WILLIAM B GOETZ
326 SlOTH ST
LEMOYNE PA 170.3-1798
,
SECTION II-LIABILITY PROTECTION
--------~----------------------------------------------------------------------
COVERAGES
.'
LIMITS OF PROTECTION
PREMIUMS
-------------------------------------------------------------------------------
D, PERSONAL INJURY LIABILITY **
** $ 1,000,000 EACH OCCURRENCE *
E. PROPERTY DAMAGE LIABILITY ** *
* * INCLUDED
F. ADVERTISING INJURY LIABILITY ** *
** $ 2,000,000 POLICY AGGREGATE*
G, MEDICAL PAYMENTS **
-------------------------------------------------------------------------------
G. MEDICAL PAYMENTS
$
5,000 EACH PERSON
******** INCLUDED
-------------------------------------------------------------------------------
DMM
TOTAL PREMIUM - - - - - - - -
BALANCE - - - - - - - - - -.-
$ 1,339.
$ 1,339.
POLICYHOLD~R RENEWAL SERVICE -
BUILDING AMOUNT INCREASED BY 2' -, COMMERCIAL
-, '
'.
,
006036
(SEE REVERSE SIDEl
05/18/93
ERIE INSURANCE EXCHANGE
ULTRA SURE POLICY
AA7507 RONALD L SHINER
,. ",U';'--;i,,'ITEM 'l.NAMElj'JNSURED AND ADDRESS',; . " '
WILLIAM B GOETZ
326 SlOTH ST
LEMOYNE PA 170.3-1798
H
SCHEDULE OF FORMS
FORM NUMBER EDITION DATE DESCRIPTION
ULS 01/93 ULTRASURE PACKAGE FOR PROPERTY OWNERS
ULHY 05/89 AMENDATORY DECLARATIONS SUPPLEMENT -
DUTY TO DISCLOSE
GU15 12/85 PENNSYLVANIA NOTICE
GU18 01/88 PENNSYLVANIA AMENDATORY ENDORSEMENT
GUU 03/93 * PENNSYLVANIA AMENDATORY ENDORSEMENT
-, .
"
,
006037
(SEE REVERSE SIDE)
05/18/93
\.
"
... --..~....... .
-
.-
WHERE TO LOOK IN YOUR POLICY
PAGE
Ag...m.nl......,....................................... .3
Coverlg..
Advertl.ln. Injury Liability (Cov..... F) ,......,........., .18
Bulldln.(.) (Cov..... A)... ,.,.,.,.. ,.,........ .".,.... .7.8
Bu.I.... P.nonal Property (Cov..... B) ....................8
R.ntollncomc Protection (Cov.ra.. C) ,..... ,...".,.......8
M.dlcal paymento (Cov..... 0) .., .. .... .... .. .... .. .. .. ..18
P.rlOnlllnJury Liability (Cov.ra.. D) ......,........"....18
Property Dlma.. Llablllly (Covcra.. E).. .. .. .. .. ...... ,.. ,18
C.llnlllo", .......,.......,..........................., .3.7
CescrtptloJ,. :1 :1'03..:.1: ~~e::..-:i.............. .Dcclar:ulons
5:=:~enllC'I"3 :1 '::"i,'':~J' :i-::~-:'"
Accouau Rec.lvabl...........,........ ......... ..... ..12-13
Ched< For..ry or AIl.radon ............................ ..14
Ccaaterr.11 Mon.y. ................ .................... ..14
Debris Removal.........................................13
Demolldon Coil........... ........................ .... ..13
El.cllonlc Data Processln. Equlpm.nl.. . . . . . . . . . . . . . . . . . . . . 15
Employee Dlshon.lly................. ..... ..... ...... .14-15
Expen... For loIS AdJu.un.nl ......................., ....13
Exterior Slln., Lllhu and Clock........................ ...13
F.nce., Walks Ind Unattached Outbulldlnl' .............., .11
Fir. Departmcnl Servic. CharIC' ......................... .13
Fir. Extln.ulshcr Rechar.............. ................. ...\3
Key R.plac.m.nL ..................................... ...15
Money and Securltl..................................... ..14
Movin. Clause ...................... ............"... ...11
N.wly Acqulr.d Property............................... ..11
P.rlOnal Artlcl.. ................................. .......\3
Pollutonu Cleanup and Removal .......................... \3
Property In Dan.er .............. ..................... ..,11
R.rrlICrated Producu .,.................,.............. ..11
T.mperalu.. Chan.. .................................. ,..11
T.mporarlly Off.Pr.mI......"....,. .... .... ... ......... .,11
Transportation ........ ,..........................,... ...13
T...., Shrubs, Lawnnnd Planu ....................,.... .11
~, ' Vlluabl. Papers Ind Rcccrd. ......... ...,............. ...13
"
,
~'::U:tH:.j ~l '::':":l:~';!' 31:~:~. .
FI.. Lepl Liability... ,............................... ...n
OaraICkeepen' LIability...,.......................... ....13
Incld.ntal Medical Mllpractlc. ,.......................... .13
Non'O....ed Automobll. aad
Hired Automobll. Liability.........,.................. .12-13
'J ;.~ :..' :'.:" ': ':;-:';' ~i:..
Deductlbl.. .......... ............. ...........,...... ....11
Special Loss Paym.nll . Cov..... A . . .. , .. .. .. .. .. .. . .. .. .11
Spcclal LoIS Paym.nll . Cov....e B ...................... ,11
What W. Do NOI Cover. ExcIUllons................... ..9-11
.. ~i::; :. '::,:~.:::::"
Advertl.la. Injury Liability.. .. .... .. .. .... .. .. .. .. .. .. .11.n
Medical Paym.au ... .................................. ..11
PcrlOnallnJary Liability............................. ..ll.n
Property Dal1tl.. Liability....................,....... ,ll.n
_ ;:':..H ,nS~I'an..:.:!
Uabillty Protc:Cdon .................................... ..14
Property Protection.................................. .16-17
PAGE
Our Proml,.
Adv.rtl.ln. laJury Liability............................. ..18
M.dlcal Paymcnll ,.............. ............ ,....... ....18
P.nnnallnJury Liability..........,....... ............... .18
ProperlY Damal. Llabilhy................ ............... .18
P.rlIs Insured Against. Secllon I .........................9
"Ighls and Cull..
Ocn...1 Policy Condlllons . Section III
Accountlnl rExthan,d ..........,....... .,........ ,. ,. ..16
A....m.nt (Company)...............,................. ..16
Automadc R.n.wa1 Policy.........................,... ..13
Canc.llatlon........................... ............... ..13
Concealment, F..ud or Mlsrepresentatlon.....,.........,..ll
Cooperadon.....................,..................,.. .13
How Vour Policy May B. Chan..d ..................... ..13
In.pccllon and Audit.................................. ..13
No ConllnlCnt Liability (Exchan'o)............. ........ ..16
I)ur RI.ht to R.cov.r From Oth... ..................... ..13
Policy Aec.ptance ..............................,..... ..16
Prlorlly. ........ ,.......,.......,.. ....., ,.,........ ..,16
R.ciproc.1 A.reem.nt (Exchan'o)..,.... ......".."..,.. .16
Time or Inc.pdon .................................... ..16
Ccadldon. . LI.billty Protecdon . Secdon II
Bankruptcy or Anyon. W. ProlCCl...................... ..13
Law.ulll Apln'l U..., .............................. .13.14
Medical Paym.nu . Covcra.. 0 ........................ ..14
Oth.r Insuranc. .... ...........,...... ............... ...14
S.verablllly of In.uranc................................ ..14
Whal To Do Wh.n An Accldent Happen. ................ .14
Condldon. . ProperlY Protecllon . Secdon 1
Abandonm.at or Property.......,................... ....IS
Appraisal........................... ............... .15.16
DlvI.lble Contract..................... ................ ..16
Income Prot.edon . Electronic Media and Rcccrd. .,....., .16
Increa..ln Hazard........ ..,.".. ....., .,........... ",16
LoIS paym.nt ............ ... ... .. ... ...,....... .... .. ..16
Mort..... .............................. .......,.... ..,16
No B.n.nl To B.II........ .............. ............... .16
Oth.r In.uranc...................................... ,16-17
Property of Oth........... ............... ............ ...17
Protective Slr.auard. WarranlY ..............,......... ..17
Record. ........... ................. ..............".. ,17
Recoverl.. .......................... ,.. ..,.......... ...17
Repl.cemcnl Co.t Ccvcrale .:....,... ,.................. .17
SUII Alalnll U...... ............,..... ..... ........... ..17
Vacancyaad Unoccupancy.,.,..,.........."........... .17
Vour DUll.. Alter A Lo....,.......... .............. ..17.18
"H . ~ .:.. ;..
Claim Exp.ns....................... ....,............. ..19
FIlii Aid Expen... .. ..... . .... .. . ......... .. ........... .19
;1\3\ "":': :-~ ',r:. :.:'.!'" .:: ':...;: :..!
Liability Prot.cdon . Section II ... . .. .. .. .. . .. .. .. .. . ..19-11
Property Protection. Section I ...................,... ..9-11
I:,"!:" :r-: .~.~ .'::' ..... :" ::':..;'f ...........:.........7
-2.
'..
[Xl
other premium Iiabilit>. under the policy.
This agrccmcnc Is madc in reliance on the information you
have given us and Is subject to nil the tcrms or this policy.
This policy, aU endorsements to it, and the Subscriber's
Agreement eonstltute the encire agrccmenc betwccn you
and us.
ERIE INSURANCE GROUP I. proud 10 prelenl Ihll ULTRASURE PACKAGE POLICY FOR
PROPERTY OWNERS. Thl. Imporlant contracl belween YOU and The ERIE" conlllll 01 Ihll
polley with coverage agrllmentl,lImltatlonl, exclusions and condltlonl, a Declaratlona, plus
.ny endorum.nt., It la wrlttan In plain, aim pie terms ao that It can be easily understood. We
urge YOU 10 read It.
Thl. polley contain. many XTRA PROTECTION FEATURES developed by The ERIE" ,Wherever
.n "X" ,ppllr.ln the margin 01 thl. polley, YOU receive XTRA PROTECTION, either as addl.
tlon.1 coverage or a. . coveraga that la not In most business owners policies,
The protection given by thll pOlicy lain keeping wllh the single purpose 01 our Founders: "To
provld. YOU with .. nllr PERFECT PROTECTION, as near PERFECT SERVICE, as Is humanly
pOlllbl., .nd 10 do .0 at tha LOWEST POSSIBLE COST,"
.'\ r.3J;~Sjl,!.: .',;--r
.. . '.~. -.. ,,-:.: !'!:. ~ . ::.-:
In rcturn ror YOllr timely premium pa>'mcnt, yuur eom.
pllance wllh 011 or the pro\'lslon or this pollc>', and your sign.
Ina of a Subocrlber'. Aarnment with Eric Indemnlt>. Com.
pan>' alld other Subscrlbcrs, we aarce to providc the
covcraacs you hove purchascd, "our coverages and limits
or protection arc shown on the Declarations, which arc pan
or this pollc>',
Vour lialllnathc Subscriber'. Agreement, which includes
o Ihnlled powcr.or.attorner, permits Erie lndemnlt>. Com.
pan)', as Allorncy,ln.Fact, to make rcdprocallnsurance con.
tracll bctwcen you and other Subscribers and otherwise
munllae the bulincll or lhc Eric Insurance Exehange, This
powcr.or.allorney appllcs oniy 10 your insurance bu.slness
atthc Exchunac and Is IImlled 10 the purposes descrlbcd in
the Sub.crlber'. Agreement,
Vour responsibility as 0 Subscriber Is determined by this
policy and the Subscriber's Aareemenl. You are liable for
jUllthe policy premiums characd and are notsubjCClto any
~... .-: ~:"::"'l'"
In return for your timel>' premium paymenc and your com-
pliance with all of the provisions of Ihis policy, we agree
to provide the coverages you have purchasc:d. Your
coveragcs and limits or proreclion llI'e shown on the Declara-
lions, which arc part or this policy.
This agreemcnc is made in reliance on the information you
have given us, and is subject to alllhe lerms or this ,,policy.
This policy and all endorscmenu to It constitule the entire
agrccmenc between you and us.
tlE:FlN]j]ONS
Throuahoul your pollc>' and Its endorsement rorms, the
followlna words hove a special meaning in your policy when
thcy appear In bold type.
· "AdverllslnalnJury" means injury arising out of:
(I) oral or written publication or material that slanders or
IIbeis n person or organization or displll'ages a person's
or oraanizolion's goods, products or services;
(2) oral or wrllten publication or material that violates a
person's right or privacy:
(3) misappropriation of advertising Ideas or slyle of doing
business: or
(4) inrringemcnc of cop>'right, title or slogan.
. "Aircraft" mcans any machine or dcvice capable of
atmosphcric night exccpt model airplanes.
. "Anyone we protecl" and "Insured" when u.sc:d In See.
tlon II means:
(1) you;
(2) your spouse with respCCllo the conduct oryour bu.siness,
ir you arc doing business as an individual:
(3) all partners, members, and their spouses, If doing
bu.slness as a partnership or Joint venture, but only while
aeting whhin the scope of their duties:
-3.
...
(4) ex.'Cutive officers, trustees or dlrcctors If doing busincss
as a corporation, association or other entity, but only
whilc acting within the scopc of thcir dutics.
Stockholders lIl'e also Insureds, but only with rcspect
to their liability as srockholdcrs;
-, '
"
,
(5) your employees while In thc course of thclr cmploy.
ment. Employees arc not Insurcds for:
(a) personllllnjury to yoo or to a eo.employee whllc in
thc course of their employmcnt; or
(h) personal Injury arising out of thclr rcndcring of or
failurc to rcnder professional hcalth care scrviees;
(6) your real cstate managcr;
(7) any person or organization having propcr temporary
custody of the insured propert). if you die, but onl)':
(a) with respect to liability arising out of the
maimcnanec or use of the Insurcd propcny; and
(b) umll a iegal represcmative has been appolntcd;
(8) your Icgal rcprcscntativc if you die, but only while pcr.
forming duties as your rcprcsemativc;
(9) an)' pcrson opcrating upon a public highwa)', with your
pcrmlsslon, mobile equipment that is registered in your
namc under a motor vchiclc registration law. Anyonc
we protect includes any person or organization rcspon.
sible for thc operation of mobile equipment. but onl)'
if loss Is not rccovcrable undcr any othcr kind of
insurance.
Anyone we protect docs not Include any person or
organization with respcct to:
(a) personal Injury to a eo-employce of the pcrson
operating the mobile equipment; or
(b) property damage to propcny owned by, rented to,
in thc chargc of or occupied by you or thc employcr
of any person who is an Insured under this pan
(9); and
(10) any organization yoo acquire or form, othcr than a
partnership or joint vcnturc, and over which you main.
tain owncrshlp or majority intercst. This insurnncc docs
not apply to:
(a) the new organization if it is also an Insured undcr
othcr similar Insurance;
(b) thc organization 90 days after the datc thc
organization Is acquircd or formed by you;
(c) personal Injury or property damage undcr Pcrsonal
Injury Liability (Covcrage D) and Propcny
Damage Liability (Coverage E) which occurred
beforc you acquired or formed thc organization;
and
(d) advertising Injury undcr Advcrrising Injury Liabili.
ty (Coveragc F) arising out of an offcnse commit-
tcd beforc you acquired or formcd thc
organization.
This Insurance does not apply to any panncrship or joint
venture not shown on the Declarations.
. "Automobile" means a land motor vehicle, trallcr or
scml.trailer designed for trnvcl on public roads (including
any allached maehincry or cquipmcnt), but docs not include
mobile equipment.
. "Bodily Injury" mcans physical harm, siekncss or dlscase
sustaincd b)' a pcrson. Bodily Injury also includcs earc and
loss of scrviccs and dcath at any time rcsulting from bodily
Injury.
. "Burglary" means thc taking of business pcrsonal pro.
pcny (as dcscribed in Coverage B) from Insldc thc prcmlscs
by a pcrson unlawfully clllcring or exiting the premlscs as
cvidenccd b)' visible marks of forcible entry or exit. It in-
eludcs loss to thc building and its equipment resuiting from
burglary or allempted burglary.
. "Completed operatloos hazard" Includcs all personal In.
jury and property damage occurring away from premises
you 0\\1\ or rent arising out of your work that has bccn com.
pletcd or abandoned.
Your work will be considered comple:cd at thc carllest of
thc following tlmcs:
(I) when all of the work enJlcd for in your contract has been
complctcd;
(2) whcn all of the work to bc donc at the site has been com-
pleted, if your contract calls for work at morc than one
site;
(3) whcn that part of the work done at ajob sitc has bcen
put to its intendcd use by any person or organization
othcr than another contractor or subcontractor work.
ing on the same project.
Work which ma)' nced furthcr servicc, maintenance, cor-
rcction, rcpair or rcplaeemem, but which is otherwisc com.
plcte, will bc considcred complcted.
The completed operations hazard docs not include personal
Injury ~r propeny damage arising out of:
(I) the transportation of property, unicss thc personal In.
jury or property damage lIl'lses out of a condition in or
on a vehicle ercatcd by the loading or unloading of it;
(2) the existcnce of tools, equipment not install cd, or
materials abandoncd or unuscd.
. "Declaratlons", "Amended Declarations", "Revised
Declarations" and "Renewal Certificate" means the form
which shows your coverages. limits of protcction, premium
charges and othcr information. This form Is pan of your
policy.
. "Extra expense" mcans the ncecssary expenscs ineurrcd
b)' you during the Interruption 01 business that would not
have bccn incurred if there haa been no dircctloss to covered
property eauscd by an insured peril.
. "Impaired property" means tangible propcny, othcr than
your product or your work, that cannot be uscd or is Icss
uscful bccause:
(I) the Impaired property incorporatcs your product or your
work that is known or thought to bc defcctive, deOeient,
inadcquate or dangcrous; or
(2) you have failed to fuInllthc tcrms of thc comract or
agrcemem;
.4.
if sU",h propcrty can bc restorcd to use b)':
~ (I) rcpalring, rcplaclng, adjusrlng or rcmoving your prod.
uct or your work: or
(2) your fulfilling the Icrms of Ihe contraCt or agrccment,
. fllnsured contract" means:
(I) a Icasc of premises:
(2) a sidctrack agrccmcnt;
(3) an cascmcnl or IIccnsc agrcemcnt in connection with
vchiclc or pcdestrlan privatc railroad crossings al gradc:
(4) any other CascmCRtagrccmCnt, exccplln conncctlon with
construction or dcmolltion operations on or within SO
fcct of a railroad:
(S) an agrccmcntto indcmnlfy a municipality which Is rc.
qulrcd by municipal ordinance. This docs nOI apply to
work pcrformed for the municlpallt).:
(6) an elcvator maintenancc agrcement: or
(7) that part of any contract or agrccmenr relating 10 the
conduct of your business undcr which you assume Ihc
tort liability of anothcr to pay damages bccausc of pcr.
sonallnjury or propcrty damagc to a Ihird pcrson or
organization, If the contraCt or agrccmentls made prior
to thc pcrsonallnjury or properlY damage. Tort lIablli.
IY me:lns a liability that would be imposed b)' law in Ihe
abscnce of any contract or agrecmcnr.
An Insurcd contract does not include that part of an)' con.
tract or agrcemenl:
(I) that indemnllies an 31'chitcc:t, engincer or surveyor for
personal Injury or propcrty damage arising out of:
(a) prcparing, approving or failing to prepare or ap.
prove maps, drawi~gs, opinions. reports, surveys,
change orders, deSigns or specllications: or
(b) giving or failing to give directions or instructions
if thai Is the prim:iry'eause of the personallnju';
or property damage;
(2) under which anyone we protect, as an 31'ehitect, CRgineer
or survcyor, assumes lIabililY for personal Injury or pro-
. perty damage 31'islng out of anyone we prolect's render-
. ing of or failure to render professional services
Including: '
(a) preparing, approving or falling to prepare or ap.
prove maps, drawi~gs, opinions, reports, survcys,
change orders, dcslgns or specilicatlons: and
(b) supervisory, Inspection or engincering services: or
(3) thatlndcmnilies any person or organization for damage
by lire 10 prcmises rented or loaned to you.
. "Interroptlon or boslness" means thc pcrlod of time thai:
(I) bcglns with the date of direct loss to covercd property
caused by an insured peril; and
(2) cnds on the date when the covcred propcrty should be
repaired, rebuilt or replaced with reasonable specd and
similar quality.
. "Loss" means direct and accidental loss of or damage
to Insured propcrly.
. "Mobile cqolpmenl" mc:lllS :lilY of thc fOllowinltypes
of land vehiclcs (inclUding :lilY allachcd machinery or
equipment):
(I) bulldozcrs, f3l'm machincry, forklifts and olher vehicles
deslgncd for use principally off public roads:
(2) vchlcles maintaincd for wc solcly on or nCX110 premises
you own or rcnt;
(3) vehicles that travei on crawler Ireads:
(4) vehicles, whcthcr sclf.propellcd or not, mainlaincd
primarily 10 provide mobility 10 pcrmanenlly moun led:
(a) powcr cranes, shovels, loadcrs, diggers or drills; or
(b) road construction or resurfacing cqulpmcnt such as
gradcrs, scrapcrs or rollcrs:
(S) vehicles nOt describcd In (I), (2), (3) or (4) above that
31'e nO[ self.propclled and are maintain cd primarily to
provide mobilit)' to pcrmancntiy attaehed cqulpment of
the following t)'Pcs:
(a) air comprcssors, pumps and gencrators, including
spra)ing, welding, building cleaning, geophysieal ex.
ploration, lighting and well servicing equipmcnt: or
(b) eherry pickcrs and similar dcvlces used 10 raise or
lowcr workcrs;
(6) vchlcles not dcscribcd in (I), (2), (3) or (4) above main.
13lncd primaril)' for purposcs other than the transpor-
tation of pcrsons or cargo. However, self.propelled
vehicles with thc following types of permanCRlly allach.
cd equipment are not mobile equipment but are con.
sidcred automobiles:
(a) equipment designed primarily for:
I. snow removal;
2. road malntcnanec, but not construetlon or
resurfacing:
3. strcct cleaning:
(b) chcrry pickers and similar devices mounted on an
aotomoblle or truck chassis and uscd 10 raise or
lower workers; and
(c) air compressors, pumps and generalors, inclUding
sprayi~g, welding, building cle:lning, gcophyslcaJ ex.
ploratlon, lighting and well servicing equlpmCRt.
. "Money" means:
(I) currcncy, coins and bank notes In currcnt use and hav-
Ing a face value: and
(2) Iravelcrs checks, register checks, crcdlt card slips and
money ordcrs held for sale.
. "Occurrence" means an accident, Including conUnuous
or rcpeated exposure to the, same general, harmful
conditions,
. "Personal Injury" means Injury arising out of:
(I) bodily Injury;
(2) IIbcl, slander, dcfamation of ch3l'acter;
(3) false arrcst, wrongful detention or imprisonment
malicious prosecution, radal or rcllgious dlscrimlnalion:
wrongful cntry or cvictlon, Invasion of privacy or
humiliation causcd by any of Ihese. '
.S.
!~.-!
,
..
. . "Pollutants" mean any solid, liquid, gascous or thermal
irrllant or cOnlamlnant, Including smoke, vapor, soot,
rumes, acids, alkalis, chcmicals and Walle. Waste Inciudes
materials to be reC}'clcd, rccondllloncd or reclaimed,
. "Products hazard" Includes all personal Injury and pro.
pcrty damagc:
(I) occurring away rrom prcmises you own or rent and arls.
Ing out or your product, cxccpt products that are stili
in your physical possession;
(2) arising out of your product ir your business includes the
handling or distribution of your product ror consump.
tlon on premises you own or rent.
. "Property damagc" mcans:
(I) physical Injury to or destruction or tangible propcny In.
cludlng loss or hs use; or
(2) loss or use or tangible propcrt~. which is not physlcall~'
injurcd or destro~'cd.
. URent:lllncometl mcans:
(I) the rents from the tenant occupancy of thc property
descrlbcd on the Dcclaratlons:
(2) all expenses for which thc tcnant Is legally rcsponsiblc
and for which you would othcrwise be responsible:
(3) renlal valuc or the properlY describcd on the Dcclara.
tlons and occupicd b~' you:
(4) incidcntal incomc reccived rrem coin.opcratcd laundries,
hall rCnlals or othcr raciiltics on thc prcmlses dcscribcd
on the Dcclaratlons.
. "Robbcry" mcans the taking or business personal pro.
perty (as described in Coverage B) rrom thc care and custody
of a person by one who has:
(I) causcd or threatened to cause that person bodily harm:
or
(2) commllled an obviously unlawful act whnessed by that
person.
. "sorc" means a Sleci receptacle which has a door(s) that
Is no less than 1/2" thick, walls or bOdy that arc no less than
1/4" thick and is equippcd whh at least one key or com.
blnatlon lock.
. "Securities" means negotiable and non. negotiable in.
struments or cOnlracts rcpresenling eithcr money or othcr
property and Includes:
(I) tokens, tickcts, revcnue and othcr stamps (whcthcr
represenlcd by actual stamps or unused value in a metcr)
In currcnt use; and
(2) evidences of dcbt issued in conncction with crcdit or
charge cards not issucd by you;
but docs not Includc money.
. "Suit" means a civil proceeding In which damagcs are
allcged bccausc or personal InJury, properly damage or
advertising Injury to which this insurance applies, Suit in.
c1udcs an arbhratlon proceeding allcging such damages 10
which you must submit or submit whh our consent.
. "Vault" means a stcel or concrete companmcnt which
has a stecl door(s) that Is no less than I 1/2" thick: walls
that are no less than 1/4" thlck,lf steel, or 9" thick, if rcin.
rorccd concrcte; and the door Is equlppcd with at least onc
combination lock. The word "walls" Includes thc roof and
noor or the vault.
. uYour product" means:
(I) any goods, other than real propcrty, manuractured, sold,
handicd, dlstrlbutcd or disposed or by:
(a) you,
(b) others trading under your name, or
(c) a pcrson or organization whose business or asscts
you have acquired; and
(2) any conlalners (othcr than vchlcles), matcrlals, pam or
cqulpmcnl rurnlshcd In connection whh such goods or
produCts.
Your product Includes warranlles or represenlatlons madc
at any tlmc whh respect to the nmess, quality, durabllh~'
or performance or your products.
Your product docs not Include vending machlncs or an~'
other propcrt~. rcnted to you or locatcd on your premiscs
ror usc b>' othcrs.
. "\'our work" means:
(I) work or opcrations pcrformcd b~' you or on your bchalr:
(2) matcriais, pam or cqulpmcnt rumishcd In conncctlon
whh such work or operations.
Your work Includes warranties or represenlations made at
any time with respect to the nmess, quallt~., durability or
perrormance of your work.
..:::'7::..i..=.... !'~;; ...::....~ t.
.... ...
...... ... -
. .
1_':'
w~;:INli;.~N.~
The rollowlng words have this special meaning in policies
Issued by Erie Insurance ~T:hange when thcy appear In bold
typc.
. "Anyonc we protcct" and "Insured" when uscd in Sec-
tions I and III means the Subscrlbcr and any other person,
nrm or organization named on the DCclanulons under Nam.
cd Insurcd.
. "Subscrlbcr" means the person who signed, or the part.
nership, nrm or corporation that authorized the signing or,
the application for this policy.
. "Subscriber's Agrcemcnt" means the agreement, In.
cluding a IImhed power.or.attorney among the Subscrlbcrs
and the Erie Indemnhy Company, as Allomey.ln.Fact.
. "We", "us" and "our" means the Subscribers at Eric
Insurance Exchange as represcnted by thcir common
Attomcy.ln.FaCI, Eric Indemnity Company.
. "You", "your" and IInamed Insured" mcans the
Subscriber and othcrs named on the Dcclaratlons under
Named Insured.
.6.
\
~OOIj'I~NA':' ;.:;1" m.3Ui=l,l,N'::! ':O"'IP~N,(
:);.'iNlTI01i.3
The rollowlng words have this special meaning in policies
issucd by the Erie Insurance Compony when lhcy appcar
In bold type.
. "Anyone we prolecl" and "Insured" when used In Sec.
lions I and 1Il means any person, lirm or organization
namcd on the Declarations under Named Insurcd,
-I
. "We". "us" and "our" means Eric Insurance Company.
· "You". "your" and "named Insured" menns the per.
sons named on the Dcclarallons under Named Insured,
WH'S~ A~t) Wrl~~E 'j}IJS ,";)1..!:')'! .\,:lnJES
, -'
This policy applies to losses that occur during the policy
pcriod. The policy period Is shown on the Declarations,
Renewal Certificate, Amended Declarations, Revised
Declarations or endorsement. An Amended Declarlltlons or
endorscmenltclls you thatlhe policy has bcen changed, A
Renewal Certlflcale tells you that the policy is being renew.
ed ror anothcr policy period.
Property Protection - Section I - This policy applies to 1055
of propcrty llS deslgnatcd In the speclnc coverage.
LiabililY Prolcction - Scction 11 . This policy applies
(1) within the United States of America, its territories or
possessions, Puerlo Rico or Canada, or
(2) in intcrnational waters or airspace if damages do nOl
occur while travcling to and rrom other countrics, statcs
or nations, or
(3) anywhcre In the world Ir
(a) the personal Injury , property damage or advertis-
Ing Injury arises out or:
I. a product made or sold by you in the United
States or Amcrlca,lts tcrrllories or possessions,
Puerlo Rico or Canada, or
2, the activities or any person whose home is in the
United States of Amcrica, Its territories or posses.
sions, PUCrlO Rico or Canada, bUI is temporari.
I)' away on your business; and
(b) anyone we protect's responsibility to pay damages
is dctermincd on the merits of a suit in the United
States of America, its territories or possessions,
Puerto Rico or Canada, or in a scttlemenl we
agree to.
?"'O"'-~-" -,.,O--...,-"~" ,- ,..,..." 1
n r~n J (~n J ':'\..,J II;,},.. 4 ~~..., J J'wrJ
BUlldlng(s) . Coverage A - meaning buildings described
on the Declarallons and anything permanently au ached. II
also Includes:
.. (I) building cquipment and lixtures servicing the premises;
.
,
(2) personal properly you have for the service and
maintcnance of the buildings InclUding, but not limited
10, the following:
(a) lirc extinguishing equipment,
(b) outdoor rurnlture,
(c) lioor coverings,
(d) appliances used ror refrigerating, ventilaling, cook.
lng, dishwashing or laundering, and
(e) liag poles and outdoor lights; and
(3) glass which you own or glass which Is in your enre,
custody or conuol and for which the Icase holds you
responsible. The glllSS must be part of lhe building or
In the building described on the Declaralions, Including
glass in wall cases.
This covcrage docs, not apply 10:
(1) fenccs and walks, except as provldcd In Extcnsion or
Coverage - A. (2);
~ .
(2) oUldoor swimming pools and equipment perlalnlng
thereto;
(3) wharf property;
(4) retaining walls, bridges, roadways, palios or olher pav-
ed surfaccs;
(5) lrecs, shrubs, lawns and plants, execpt as provided In
Extension of Covcrage . A. (3);
(6) cXlerlor signs, lights and clocks, cxcept as provided in
Extension of Coveragc - B. (6);
(7) underground pipes, liues or drains;
(8) land (Including land on which covcred property Is
located) or waler; and
(9) properly specllicall)'lnsured In wholc or In part by this
or any other Insurance.
Ac:cmaH:: "" ::';3:rns~~ :t r: :'1~:':~' A~:unt:i
This polley provides you with a guard against the effect or
inliation on construclion COSlS ror Buildings (Covcrage A).
We will kccp lrack or costs and at the ncxt policy period
we will adjust the amount or yoor building coverage If
nccessary. Your premium will be adjusted at ench policy
pcriod to rCnCCI any changc In lhc amount or insurance.
-7.
, re IS an ncrcase in consrruc.
lion cosrs and a loss occurs, wc will rcOccr Ihe increll.le In
rhe amounl of insurancc for Buildinss (Coverase A) before
maklns pal111cnr. Thcre will be no charse for Ihis addlrlonal
coverase.
If Ihe amounr of Insurancc shown on rhe Dce/arallons for
Buildlnss (Coverase A) is inadequate, rhese adjustmcnls may
nOI be sufncicnr to provide full rccovery should a loss occur.
:( Business Personal Property and Personal Property 01
Others. Coverage B . meanins
(I) pcrsonal propcrty perrainlns 10 your business, profcs.
slonal or Innlrutlonal acrlvilles; and
(2) personal propeny of olhers rhar is In your c3re, custody
or conrrol;
while In or on the described bulldinss, or In Ihe open on
Ihe premises describcd on Ihe Declarations or Wllhin 100 feet
thereof.
Our paymenr for loss of or damase to pcrsonal propert).
of olhers will onl)' be made ro rhe owner of rhe pro perry.
This coverase docs not appl)' 10:
(I) vehicles which because oflhclr use arc required by law
to be lIecnsed for road or air use; warercrafr and ac.
cessories while aOoat; automobiles held for sale;
(2) motorc)'e/es, reerealional mOlor vehicles and Irailcrs,
unless hcld for sale or sold but not dellvcred;
(3) cxlerlor sisns, Iishts and clocks, excepr as provided in
Exrenslon of Coverase . B. (6);
(4) money and sccurllles, eXCeplll.l provided in Exrensions
of Coverase . B. (15), B. (16) and B. (17);
(5) household and personal articles of anyonc wc protect
and anyonc wc prolcct's employecs, exceptll.l provid.
cd In Exrension of Coverase . B. (7);
(6) trees, shrubs, lawns and plants, cxceptll.l provided in
Exrension of Coverage. A. (3); .. .
(7) growing crops while ourside of buildings;
(8) conrraband, or property in rhe Course of Illegal
rransportallon or trade;
(9) cxlra cxpcnsc Incurrcd In the reproduction of your
valuable papers and rccords, cxcepr as provided In Ex.
tension of Coverage. B. (5); and
(10) propcrty spCC:ific.1l1y insurcd In whole or In parr by this
or any other insurance.
(II) property specifically insurcd In whole or in part by rhis
or any orher insurance.
Rental Income Protecllon . Coverage C . meaning loss
ofrcntallncome you SUstain due to InrcrruPllon 01 buslncss
resUlting directly from loss 10 Ihe covered buildings, or
business pcrsonaJ property or personal properry of orhcrs
described on Ihe Dcclarallons from an insured peril.
Wc will pay Ihe acrual loss of rCBlallncomc Sustained by
yoo. The rental Income loss sunained by yOU shall not cx.
cecd rhe reduction in rents less charges and expenses which
do nOt necessarily conlinue during Ihe pcriod when Ihe
premises cannor be inhabired.
The actual renral income protcctlon loss wc will pay sh,
nOI cxcced rhe aClual reduction In rcnlal Incomc during r.
inrcrruplion of buslncss whcn the lenant cannor Inhabit II
prcmises.
Wc will pa)' up to S 100 a day for Sevcn da)'s arrer YOI
buslncss is suspended ro cover loss of rcnlallncomc susrain..
b)' you while you arc dererminlng your actual renral IncOlr.
prolcctlon loss. The amount paid will be sublracrcd fror
your actual loss of rcnllll Incomc.
Wc will par rhe aClual rentllllncome protection loss for on
I)' such Icnsth of lime as would be required ro resume nor
mlll buslncss opcratlons. Wc wlllllmlllhe rime periOd tl
rhe shoner of Ihc following pcrlods:
(I) the time period required ro rcbUlld, rcpair or replace sud',
pan of thc buildlnS or business pcrsonlll propeny lI.l has
becn damased or destroycd lI.l a direct rcsult of an in.
surcd pcrll; or
(2) Iwell'e (12) consecutive monrhs from rhe dale of loss.
Pa)l11ent of loss Is nor IImiled b)' the end of the polic}'
period. Loss ma)' include:
(I) loss for a maximum of two consecutive weeks whcn
premlscs 3re closed b)' order of civil authoritl'lI.l a result
of direct ph)'sicalloss of or damage ro propcrty, orhcr
rhan at Ihe described prcmises, causcd b)' an insurcd
peril; and
(2) ex Ira expense. Wc will pa)' anI' exlra expensc ro:
(a) al'oil! or minimize rhe Inlerroptlon 01 business and
to contlnuc your business acrlvitles:
I. at the prcmises described on the Dcclarllllons, or
2. ar rcplacemcnt premises or at tempor3r)' loca.
rlons, including:
a. relocarion cxpenses, and
b. COsts 10 equip and operate rhe rcplacemenl
or temporary 10c.1tions;
(b) minimize rhe InterruPllon 01 business If you cannor
COntinue your business actlvirles;
(c) repair or replace any property or research, replace
or restore the lost Information on damaged valuable
papcrs and records to Ihe extenl It reduces rhe
amounr of loss thaI otherwise would have been
payable under loss of renlal Income.
You arc rcquired ro resume normal business operarions lI.l
promprl)' as possible and shall use all available means to
elimlnale any unnecessary delay.
Full Resumprion of Operarions . Wc will also pay your ac.
lual loss of rcntallncome for an addirlonal30 days if your
renlllllncomc after operations arc resumed is less than your
rcnllll income before the loss. The additional amOUnt Wc
will pay will srarr afler thc laucr of the fOllOWing times:
(I) Ihc dare on which the lIabflfty for Rcnlallneome Pro.
lection (Coveragc C) under Ihis policy would lerminatc
If this clause had nOI been includcd; or
(2) the datc on which rcpair, replacemcnr or rcbuilding of
such part of the damagcd or destroycd property describ-
ed on the Declarallons Is actually completed.
-8-
?S;QILS m3Ui'l~D ~O~INST
SUILCINGS. CC':EiUJE .l.
susmess FERSONA:' ?RCPERT'I AND ':=::;S,~N'\i..
~~CP:Mi'( 0:: 07H2::.: . ..:o"c.:;.~~: ::
,::.:Ni.~L :~:CO~,1~ :=~::::':710.'l . CO'/E?"\'3: :
This policy Insures asainst risks of loss undcr Buildinss
(Covcrasc A), Business Pcrsonlll Property and Pcrsonal
PropcrlY of Olhcrs (Coverasc B) and Renlllllncomc Pro-
tection (Covcrasc C), cxCcpt llS excluded in lhis policy.
'.:;Ji":"':' ,.:C:-I.3 ~~ ":i...i;~ jlii"" i ~ .::~ .!' . 5ti.~ ;::;~j :
'/'''~l ',', J :.:: .'j.:, :; ~ . .:..':,_oi;".i
A. We do not covcr undcr Buildlnss (Covcrasc A), Business
Pcrsonal Propcrty and Pcrsonal Propcrty of Othcrs
(Coverase B) and RClllallncomc Protection (Covcrasc
C) loss caused dircctll' or indlrcctly regardlcss of any
causc or evcnt cOlllributlns concurrcntly or In any se.
quence to lhc loss:
(I) (a) b)' eanh movc:melll (othcr than sinkholc col-
lapsc), Includlns but not limitcd to canhquakc,
mincsubsldencc,landslidc, mudslidc, mud Oow,
carth sinklns, carth rising or shifllng, or earth
movcmclll causcd by volcllllic cruption, explo.
sion or effusion;
(b) by Oood, surfacc walcr, wavcs, lldal watcr or
tidal wavc, ovcrOow of me:uns or othcr bodies
of watcr, or spray from llIlY of thesc, all whcthcr
driven by wind or not;
(c) by watcr or scwagc which backs up throush
sewcrs or drains; or
(d) by watcr bclow lhc surface of thc ground In.
cludinS that which excrts pressure on or Oows,
.. $ceps or lenks lhrough sldcwalks, driveways,
foundations, walls, bllScmclll or othcr Ooors, or
throush doors, windows or any othcr opcnings
In such sldcwalks, drlvcways, foundations,
walls, bllScmclll or Ooors;
unless Orc, explosion, sprinklcr lenkasc, volcanic ac.
lion, or buildlns SlllSS brcakagc caused by volcanic
cruption, explosion, or effusion ensues, and thcn on-
iy for cnsulnS loss.
Volcanic action mcnns dircctloss resulting from lhe
eruption of a volcano causcd by:
(a) airborne volcanic blllSt or airbomc shock waves,
(b) ash, dust or particulatc mallcr, or
(c) lava Oow.
All volclllllc eruptions that occur Wilhin any
168.hour pcrlod wiU constitutc a slnsle occurrcncc.
This docs not Includc the COSllO rcmovc ash, dust
or partlculatc mailer that does not caUSe dlrcctloss
10 thc covcred propcny.
This exclusion docs nOl apply to propcrty bcinS
transportcd.
(2) by war, whcthcr declarcd or undeclarcd, dischargc
of a nUclcar wcapon (cvcn If accidclllal), hostile or
,
.
warllkc action in tlmc of peacc or war,lnsurrectlon,
rcbcllion, rcvolution, civil war, usurped powcr, In.
cludlng action taken by govcrnmclllal aUlhorlty In
dcfcndins asainst such an occurrcncc.
(3) by seizurc or dcstructlon of covcrcd propcrty by
order of sovcrnmenlal authority, ..,cept as provld-
cd In Rcntallncomc Protection (Covcrage C).
We wiU also covcr loss causcd by acts of destruc.
lion ordcred by govcrnmclllal authority to prcvCIll
lhe sprcad of a lirc.
(4) by nuclcar rcaction or radlallon, or radloactlvc con-
tamination unlcss Orc ensues and thcn only for cn.
suing loss.
(5) by dcterloratlon or dcprcciatlon.
(6) by lhe cnforcement of any law or ordinancc
rcsulatins thc construction, usc or rcpair of any pro.
pcrty, or rcquirlns thc lcarins down of any propcr.
ty, Including thc cost of rcmoving hs debris.
(7) by thc failurc oi powcr or othcr utility scrvice sup.
pllcd to thc insurcd premises, howcvcr causcd, if thc
fallurc occurs away from the Insured prcmises (cx-
CCpt as providcd in Extensions of Coveragc - A. (4)
and A. (5)), unlcss a covcrcd loss cnsues, and thcn
onl)' for cnsuing loss.
(8) by collapsc. We wiU covcr 1055 from collapsc caus.
cd by lirc; lightning: windstorm; hail: cxploslon;
smokc: aircraft; vchicles; rial; civil commotion; van-
dalism or malicious mischicf: brcakasc of building
glass; falling objects; weight of snow, Icc or slcct;
watcr d:unagc; hiddcn decay: hidden inscct or vcr.
mln damage; sprinkler leakagc; sinkholc collapse;
volcanic action; wcight of peoplc or pcrsonal pro.
perty; wcight of rain that collects on a roof; or usc
of dcfcctivc malerial or mcthods In conSlructlon,
rcmodcling or rcnovation if lhc collapsc occurs duro
ing thc coursc of thc construction, rcmodcllng or
renovation.
We y,ill not covcr scttling, cracking, shrinkagc, bulg.
ing or expansion.
Slnkholc collapsc mcans loss causcd by lhe sudden
sinking or collapsc of land into underground empty
spaccs created by thc action of water on IImestonc
or dolomitc. This peril does not Includc:
(a) the cost of tilling sinkholcs; or
(b) sinking or collapsc of land Into man.madc
underground cavities.
B. We do not covcr undcr Buildings (Coveragc A), Buslncss
Pcrsonal Propcrty and Pcrsonal Propcrty of Olhers
(Covcragc B) and RClllallncomc Protection (Coveragc
C) loss causcd:
(I) by
(a) wear and tcar, rust or corrosion, mold or rOlling;
(b) changc in Oavor, color, texturc or finish;
(c) damp or dry air;
(d) lhc relcasc, dischargc or dispcrsal of con.
laminallls or pollolants;
(c) inhcrcm vicc;
.9.
,
.
(I) smo,;
(g) larclll or hlddcn dcfc.:t;
(h) marring or scratchln,;
(i) smokc, vapor or ,ases from agricultural or in.
dumlal opcratlons;
(j) scrrling, cracking, shrinkln" bulging or cxpllnd.
Ing of pavcmcllls, foundallons, walls, noors,
roofs or ccillnas;
(k) vcrmin or Insects;
(I) mechanical breakdown; or
(m) or to machines lInd maehincry by rupture,
bursting or dlsllllearalion of their rOlallng or
mo\ina parts rcsulting from cClllrifugal or
rcciprocaling force;
unless a covered loss ensues, and rhen only for
ensuina loss,
(2) by m)'Sterious disappcarance, unexplalncd loss or in.
Velllory shortage.
(3) by freezing by tcmperature rcduction to plumbing,
hcaring, air conditioning or Other equipment or ap.
pliances (except fire protective s)'Slems) or by water,
other liquids, powdcr, or molten material that leaks
or nows from such Items while the dcscribcd
building is vacnlll for more thlln 60 consecutive da)'S,
unless you have exercised rC:lSonable care to:
(a) mallllaln hcat in rhe building; or
(b) shut off the watcr suppl)' and drain rhe system
or appliance of water.
We will pay the cost 10 tear out and rcplace any part
of the building described on rhe Declarations to
repair dlln1age to rhe system or appliance from which
the water, other liquids, powder or molren material
escapes.
We will not pay for thc cOS! to repair or rcplace any
dcfect In the system or appliance rhat caused the loss
or damage.
(4) by explosion of or damage to steam boilers, steam
pipcs, steam turbines or stcam cngincs if owned by,
leascd by or operated under your control. We also
do not cover damage to these caused by any condl.
tlon or Occurrence within the boilers, pipes, turbines
or engines. We will pay for loss from the explosion
of gascs or fuel within the combuslion chamber,
nues or passages of any fircd vcssel. We wf/l also
pay for loss by ensuing fire or explosion not includ.
ed In this paragraph.
(5) by electricity other than lightning, unless fire or ex.
ploslon ensues, and then only for ensuing loss.
(6) to the IlIlerior of the building by r:tin, snow, sand
or dust, whether driven by wind or not, unless thc
exterior of the building first susrains damage to its
roof or walls by a covered loss. We will pay for loss
cnuscd by or resulting from the thaWing of snow,
sleet or Ice on the building.
(7) to outdoor alllenn:lS Including thclr Icad.ln wiring,
m:lSts or towers by windstorm or hail.
(8) b)' dish on cst or criminal acts commiued by you,
an)' of your employces, directors, trustees c
aurhorlzed rcpresclllatlvcs:
(a) actina alone or in collusion with other pcrsom
or
(b) while pcrformlng scrvlces for you or othcrwlse
exccpt :IS provided In Extcnslon of Covcrage . 0
(/8).
(9) by or rcsultlng from an)' of the following, unlcss ,
eovercd loss ensues, and thcn only for cnsulng /0'"
(a) weather conditions, but only if wcathcr condi.
lions contrlbutc In any way with a peril exclud.
ed In Part A, above to produce the los.;
(b) acts or decisions, Includlna rhe failure to act or
dccidc, of anyonc;
(c) faulty, Inadcquatc or dcfcctlvc
I. planning, zonina, dcvclopmclll,
2. dcslgn, dcvclopmclll of spcclficatio~s,
workmanship, conmucrion,
3. matcrlals used In construcrlon, or
.f. malntenancc,
of propcrty whcthcr on or off thc Insurcd
prcmises by anyonc.
C. We do not covcr undcr Buildings (Covcragc A) Ius.
caused:
(I) to hor Watcr boilcrs or othcr water hcallng cquip-
mCIll, causcd b)' a condition or occurrencc within
thc boilers or cqulpmclll, Other than an explosion.
(2) to fcnces, pavcmelllS, outdoor Swimming pools and
related equipmcnt, retaining walls, bulkhcnds, plcrs,
wharves or docks, whcn covercd under the policy,
b)' freczing or thaWing, Impact of watercraft, or by
the pressure or wcight of Ice or warcr whcthcr dri\ll:n.
by wind or not.
(3) to bUilding malcrlals and supplies not aUached :IS
part of the building causcd b)' or resulting from
thcft.
(.f) to glass by scratching.
D. We do not covcr undcr Busincss Personal Propcrty and
Pcrsonal Property of Orhers (Covcrage B) loss causcd:
(I) by or resulting from your, or anyone acting on your
exprcss or impllcd authority, bcinglnduced by any
dlshoncst act to voluntarily part with title or posses-
sion of any propcrly.
(2) by breakage to glassware, statuary, marble, brlc-a.
brac, porcelains and other articles of a fragile or brit-
tle nature. We wf/l cover such loss caused by fire;
lightning; aircraft; explosion; sonic boom; riot; civil
commotion; smoke; vehicles; windstorm; hall; van-
dalism or malicious mischief; fnJllng objeets (the ex-
tcrior of the building musl firsl suslain damage to
roof or wnJls by failing objccts); slnkholc collapsc;
volcanic aclion; wclghl of ice, snow or slcct;
sprinklcr leakage or watcr damagc.
(3) by rain, snow or SlccllO propcrty in thc opcn.
-10.
\
(4) by any lellll promdlnl.
(5) by actual work upon propcrty belnl IIItercd,
rcpalred, Installed or servlccd, or faulty matcrials
or workmanship, unless nre ensues, and Ihen onl>'
for 1011 Ihroulh ensulnl nre.
(6) by delay, loss of use or loss of markct.
(7) 10 property that has bcen transfcrred to a person or
10 a place outside thc descrlbcd premises on Ihe basis
of unaulhorlzcd Instructions.
(8) by Ihcft of furs and fur larments. We will pa>' for
loss of furs and fur larmenu by burllary up to
510,000 for any onc 1011.
(9) by theft of lold and other precious melals and
alloys. We will pa)' for Ihcft of anyone article of
jewclry up 10 5100, but our paymelll will not exceed
510,000 for anyone loss. Jeweir:; means jcwelr>',
necklaces, bracelcls, gems, precious and semi.
precious stones, artlclcs cOlllainlng one or more
gems, and articles made of gold or olhcr precious
melals.
E. We do not cover under Rental Income Protcction
(Coverage C):
(I) Increase of loss resulting from ordinance or law
regulating construction or repair of buildings,
(2) consequcntllll damages resulting from thc brcach of
COIllr3ctual obligations.
(3) Increase of loss as a result of labor disturbances.
(4) loss due to dela>' or loss of market.
(5) Increase of loss caused by or resulting from Ihe
suspenslon,lapse or cancellation of any Iicense,lease
or conlract. We will pay for loss of rental Income
during the Interrupllon of business If the suspension,
lapse or cancellation is causcd by the suspension of
your business.
(6) extra expense caused by the suspension, lapse or
cancellalion of an>' license, lCl1Se or COlllract beyond
the Inlerropllon of business,
"
. (7) Increase of loss resulting from ordinance or law
rcgulatlng Ihe prevention, control, repair, clean.up
or resloratlon of environmental damage.
(0) Incomc proteclion specifically Insured in whole or
in part by this or any other Insurance.
,.... .
C~'~cc:lbles
Bullding(s) (Covcrage A), Busincss Personal Property and
Pcrsonal Property of Others (Coverage B) and Extcnslons
of Coverage. Scctlon I. We will pay the amount of loss 10
property In anyone occurrcnce which is in excess of the
deduclible amount shown on the Declanltlons, unless other.
wise statcd in the Extensions of Coverage.
Theft. We will pay the amOUIll of loss 10 property caused
by theft in anyone occurrence which is in excess of either
5200 or the deductible amoulll applying to Bulldlng(s)
(Covcragc A) and Business Personal Propcrty and Personal
Propcrty of Othcrs (Covcragc B) shown on the Declarations,
whichcvcr is the grcater amoulll.
Extension of Covcrage . B. (18) . Employce DishoneslY .
$200 deductlbic appllcs.
Rental Ineomc Protcctlon (Coverage C) . No dcductlble
applies.
:,:<i-:!3J l.~a$ '=~1'''m'1'':3 .. '-:':'I'!r:)'je A
The following propert>'ls subjcctto speclaltrealment when
damagcd by an Insured peril:
Our paymelll for loss to glass will also Include:
(I) replacemelll of building glass with safety Ilazlng
matcrlals when made ncccssary by an ordinance or
building code,
(2) rcplacemelll of ICllcring, ornamenlatlon or burglar IIIl1l111
foil,
(3) repair or rcplacemclll of frames,
(4) Installation of tcmporar)' coverings, and
(5) removal of obstructions.
. '.
..:.;.~. ....~l -:. -:.':.1- ....:.'ir::gl! =
The following propert>. is subject to specillllreatment when
damagcd by an insurcd peril:
(I) Aecounling Books, Records, Tapes and Rccordlng
Mcdla. We will pa>' >'ou the COSt of blank Items (books,
mm, lape or olher recording media). Extension of
Coverage. B. (5) . Valuable Papers and Records pro.
vidcs for rcproductlon of these Items.
(2) Improvcmcllls and BeltcrmenlS.
(a) If you pa>' for rcpair or replacemelll, we will pa>'
you Ihc c.~pcnses invoived not exceeding the replace-
mcnt cost of damaged property.
(b) Ifnot repaircd or replaced, we will pay you the pro.
purtlon of the original cost that the remalnlngtlme
of your Icasc at the lime ofloss bears to Ihe remain-
ing time of y,OU! Icase when property was InstaJled.
(c) If rcpaired or replaced at the expense of olhers, there
Is no loss pa>'ablc to you.
(3) Property of Othcrs. If you are liable for the property
of others, we will pay the actuaJ cash value of the
damagcd propert>.. In addition, we will pay for labor
and malerials you have provided,
(4) Sold Propert>.. If you have sold property but not
dellvcred It, we will pay you Ihe net selling price.
':::7c~I:.iJ'=i~IS ~, C:VE1UGE. S:::CTIO~J J
A. We will pay the following losses at your option.
Payments under thesc Extensions are not an additional
amoulll of Insurance and wjll not Increase Ihe tOlaJ
amounl of insurancc available for the coverage Involved.
(I) Moving Clause. Coverage B. When you noUfy :(
us that you are moving, coverage for loss will apply
for 60 days while In transit and at each location. The
amount of Insurance applying at each location will
be Ihe proportion that the vaJue In each luch loca.
tion bears to the total value of Business Personal
Propcrty and Personai Property of Others (Coverage
B) eovcrcd at the originalloC3tion. After the com-
plctlon of your move, the covcrage will apply atthe
ncw location only.
-II.
,
-
'.,
.
(2) Fences, Walks and Unallached Outbuildings,
Tennis Courts and Inground Swimming Pools
. Coverage A. We will cover loss 10 fcnces, walks,
unallachcd oUlbulldings, tcnllls couns and Inground
swimming pools caused by lire; Iighming; explosion;
riot or e1vll commolion; aircraft; smokc; falling ob.
JecIS; windslorm; vandalism or malicious mischief;
sonic boom; sinkhole collapsc; volcanic action; or
collapse caused by an)' of the pcrlls spccincd In this
paragraph,
Unauachcd oUlbulldings include garagcs, slorage
areas and tool shcds, but do nOI include those
bUildings uscd for dwelling purposes or in connec.
tion wilh manUfacturing, scrvlcing or farming
operations.
We will pay up to 10". of the Bullding(s) (Coverage
A) limit but nOt to excccd SI5,ooo for an)' one loss.
Our pa)111ent will be on an actual cash value basis.
I( specilic insurancc is carrlcd on any hcm covcred
b)'thls extension, thcn this cXlension docs nOI app-
ly to thaI hem,
(3) Trees, Shrubs, Lawns and Plants. Coverages
A & B. We will cover loss 10 Irees, shrubs, lawns
and plants caused b)'lirc; Iighming; explosion; riot
or civil commotion; aircraft; smoke; falling obJcclS;
sonic boom; sinkhole collapse; volcanic action; or
eollapsc caused by an)' of the perils spccificd in lhis
paragraph.
If trees, shrubs and plams arc inside buildings, we
will also covcr loss caused by winc.!slorm; hall; weighl
of snow, iee or slcet; vandalism or malicious
mischief; or tempcrature change, There mUSl lirst
be damage from an insured pcrll 10 thc insured
prcmises.
We will nOl be Iiablc for morc than S500 on an)' one
tree, shrub or plant, Including expelllCs for rcmov-
Ing debris, or 52,000 tor' any one loss. We will nOl
be liable for more lhan S2,OOO for an)' one loss 10
lawns,
:( (4) Refrigerated Products. Business Personal Propcr.
ty and Personal Propert)' of Olhcrs (Coverage B)
covers loss to the eontcnts of refrigeralion cquipmcnt
on the insured premises from chhcr power or
mechanical failure.
(5) Temperature Change. Business Personal Proper-
ty and Personal Propcrty of Olhers (Coverage B)
covers loss resulling from lempcrature change. There
must lirst be damage from an insured peril to the
insured premises. Loss resulling from riol and civil
eommollon is not covered.
B. Payments undcr these Extensions of Coverage are an
ADDITIONAL AMOUNT of insurance and will In-
crease the tOlal amount of insurance avallablc for thc
coverage Involved.
(I) Temporarily Off.Premlses. Business Personal
Property and Personal Property of Others .
Coverage B. This extension includes coveragc up
to bUl nOl excccding S 15,000 for loss by an insured
-12-
pcril exccpt while in Iransh, This c.xtension appl
onl)' 10 busincss personal property and at a loeati,
yoU do not own, Icase or operate and for not mo
Ihan 60 ds)'s.
This eSleIIsion shall not apply to salesmen's samp"
property rcnted 10 others, and property sold on i
slallment or deferred paymelll plans sfler delivc
to customers.
(2) Newly Acquired or Constructed Property,
(a) \'ou ma)' apply up to 25% of Ihe limit fl
Coverage A or S250,ooo, whichever is Icss, 0'
I. ncwly acquired buildIngs al olher than tt
10Callon(s) described on the Declarations;
2. ncw addhions, ncw bUildings and new strUI
tures whcn construered on the Insure
prcmlscs,lnclUding materials, equlpmclll an
supplics on or whhin 100 feCI of the insure
prcmises; provided Ihere is no olher in
suranee applleable.
(b) You may appl)' up 10 1011I. of the Iimil fo
Coverage B or SIOO,Ooo, whiehcvel' is less, 01
newl)' acquircd busincss personal propert). a
othcr lhan the locallon(s) described on Ihl
Declarallons, providcd there Is no olher in
surance applicable.
(c) You may appl)' up 10 one monlh's aetuai
business loss or SIOO,ooO, whichever is Icss, for
loss of rental Income on:
I. newly acquired buildings and busincss pcr.
sonal property at olher than the 10Calion(s)
deseribcd on lhe Oeclaratlons; or
2. new additions, new buildings and new strue-
lures when constructed on the deseribcd
premises, including materials, equipment and
supplics on or \\ithin 100 fect of lhe deserib-
cd prcmises, ifloss 10 the ncw additions, new
buildings and new structures dclays the start
of your buslncss. The Interruption of
business will statl on the day your business
would have Slarted if the loss had not
occurred;
providcd there is no olher insurance applicable.
This eXlcnsion shall apply for 90 days after the ac-
qulshion or stan of construction, provided the policy
remains in forec or is rencwed.
You shall rcport values Involvcd and pay an)' addi-
tional premium.
This extcnsion does not apply to propcrty while in
Iransit.
(3) Property In Danger. This policy covers any toss 10
insured property removcd from the insured premiscs
or at a temporary location for up to 30 days bccausc
of danger from damage by an Insured peril or to
repair damage to the insurcd property.
(4) Accounts Receivable. This policy covers damage
to records of accounts rcceivablc up to S 10,000 for
any onc loss at the prcmises described on thc
Oeclaratlons, while being conveycd outside the
prcmises or while temporarily "ithin other prcmises
for any purpose cxcCPl storage. It eovcrs:
"
.
(a) all sums due an)'one we protect frolll ~uslomcrs,
provldcd anyone we prolect is unable 10 eollL'l:t
sueh sums as the dircet rcsuh of Iou 10 records
of accounts receivable:
(b) Intercst chargcs on any loan to offsctlmpalrcd
collections, pending repa)111CnlS of such sums
made uncollectible by su~h loss:
(c) eollcctlon expensc in cx~css of normal collection
cost which Is made neecssar)' oceause of such
loss;
(d) olher CJCpenses, when rcasonabl)' Incurred by
anyone we prolecl in re.establishing records of
accounlS receivable following su~h loss.
Covcrage will also apply while Ihc rc~ords of ac.
counlS recclvablc arc being removed 10 and while at
a placc of safclY bccause of imminent danger of loss,
and while being returncd from such placc.
Thc dcductlble does not appl)' to Ihis extcnslon.
(S) Valuable Papers and Records. Business Personal
Propcrty and Pcrsonal Propcrt). of Othcrs (Covcrage
B) Is extended to ~ovcr Ihe extra expense incurred
to rescarch, replace, reprodu~e or restore your
valuable papcrs and rccords when destro)'cd by an
insurcd peril at the prcmises described on thc
Decl.ratlons, whilc bcing con\'e)'cd oUlSldc the
premises or temporaril)' within other prcmises for
.n)' purpose except storagc.
Coveragc will al~o appl)' whilc your valuable papers
and records arc bcing removcd to and while at a
place of safcty because of immincnt danger of loss,
and while bcing relurncd from such place.
Valuable papers and records mcans written, printed
or inscribed documcnts and records, including
books, maps, mms, drawings, deccls, morrgages and
manuscripts.
This includes, but is not limited to, mm, tape, disc,
drum, ccll and other magnelic recording or cleetronie
data processing media.
This eXlension is limited 10 SS,OOO for anyone loss.
The dcductible docs not appl)' to Ihis extcnsion. ,
(6) Exterior Signs, Lights and Clocks. We will pay
up 10 55,000 for loss 10 CJClerior signs, lights and
clocks which you own or for which the lease holds
you responsible. All exterior signs, lights and clocks
must bc on the prcmiscs described on the
Declarations.
We will not pay for loss causcd b)':
(a) faulty manufacture or Installation;
(b) eXlremes of temperaturc:
(c) mechanical brcakdown:
(d) damage to elcctrical apparatus caused by elec-
Irlclty other than lighming, cxcept for cnsuing
fire damage: or
(c) brcakage during installation, repairing or
dismantling or brcakage during transportal ion,
unless caused by nre, lighming, collision, dcrail.
mcnt orovcrturn of vchlclc.
(7) Personal Articles and Property 01 Olhers. We
will covcr 10il 10 household and personal artlclcs
of allyone we protect and anyone we protect's
cmployces, We will also covcr personal propcrt).
of othcrs in your care, custody or control. We will
pal' up to 52,SOO for anyone loss.
(8) Debris Removal. We covcr the cost of rcmoval
of dcbrls rcsuhlng from a covcred loss. This does
nOt appl)' to an)'lncrcase orion rcsulling from or.
dinan~cs or laws rcgulating conmuetlon or repair
of buildings. We will pay up to sora of thc total
IimilS for Covcrages A and B plus 5S,000 for dcbris
rcmo\'al expcnsc.
This cxtenslon does not covcr Ihe cost 10 CXlract
pollulants from land or water, or 10 rcmovc,
reslorc or replace pollulcd land or walcr.
(9) Pollutants Clean Up and Removal. We will
~ovcr the ~OStlO extract pollutants from land or
watcr on Ihc insurcd prcmises if Ihc relcase,
dischargc or dispersal of pollutanls is causcd b)' an
Insurcd pcril during thc policy pcriod. We will pal'
up to 510,000 for all losses throughOUllhe ycar.
Thc COSI must be reponcd to us within 180 da)'s
aflcr thc loss or Ihc cnd of thc policy pcriod,
whichever is thc earlier dalc.
(10) Demolition Cosl. This policy covers Ihe cost, not
10 cxcced S 10,000, of demolishing and rcmoving
an)' undamagcd portion of the building afler a
covcrcd luss. The demolition must be required by
building codc.
The dcduc:iblc docs not apply to this CJCtcnsion,
(II) Expenses for Loss Adjustment. We will pal' up
10 S 1,000 for c.xpcnses Involvcd in the preparation
of loss data, inventories and appraisals. This does
not include expenses ineurrcd in using a public
adjustcr.
The dcduclible docs not apply 10 this CJCtension.
(12) Fire Department Service Charges. We will pay
charges made by a fire depanmcnt for services
rcndered as a result of an insurcd loss.
The dcductible does not apply 10 this CJCtenslon.
(13) Fire Extinguisher Recharge. We will pay CJC.
pcnses Incurred 10 recharge portable fire CJC.
linguishers afler they are used to fighl :I fire.
The deductible docs nOI apply 10 this CJClenslon.
(14) Transportallon. We wil( pay up 10 51S,OOO for loss
10 business pcrsonal property (as described in
Covcrage B) in or on a vehicle owncd, lC3Sed or
opcrated b)' or for you caused by: fire: IIghlnlng:
nood: carthquake: landslide: winclslornt: collapse
of bridgc, dock or culvert: robbery: collision (CJC-
cluding roadbed collision); Upscl or ovcrturn of
transporting vehicle: theft of an entire vchlcle: or
forciblc cntry into a lockcd vehiclc Icaving visible
marks on the extcrior of thc vchicle.
This cXlension applics away from premises only,
-13.
x (IS) Check Forgery or Allerallon. We covcr forgcry
on checks Issucd to you or altcratlon of chccks
Issucd by you up to S 1,000 for anyone loss, pro-
vidcd loss Is dlscovcred during thc polley pcriod
or whhln 60 days after Its expiration.
We wll\ not pay for loss caused by dlshoncst or
criminal acts committed by you or any of your
cmployecs, dlrcctors, trustccS or authorizcd
reprcsentatives:
(a) acting alonc or In collusion with othcr pcr.
sons: or
(b) while performing serviccs for you or
otherwise.
All losses committed by any person, whcthcr acting
alone or In collusion with others, arc consldcrcd
onc occurrence which is subjcctto the S 1,000 limit.
We have the option to defcnd at our expcnsc
anyone we protect or thcir bank against a suit for
the enforcemcnt of paymem.
(16) Counterfeit Money. W. will pay up to SSoo per
workda>' for loss from the acceptance in good faith
of countcrfcit money. "Workday" mcans a day on
which your operations are usually performed,
(17) Money and Seeurllles. We will pay for loss
causcd b>' an Insured pcrilto money or securhies
up to 510,000 for anyone loss while in or on the
premises described on the Declarations or within
a bank or savings Institution. Howcver, we will
only pay 51,000 for loss (execpt by robbery) If the
money and securities are not comaincd within a
lockcd vault or safe.
-'
We will pa>' for money and securities whllc bcing
eonve>'ed b>' anyone we protect or by an authoriz-
ed empioyee, up to 510,000 for anyone loss.
We will only pay 51,000 for loss if the loss occurs
Inside the home of anyone we protect or an
authorized employcc.
"
.
We will pa>' for money and securities dcstruction
up to 510,000 for any onc loss. Money and
securllles destruction mcans loss by dcstructlon of
money and securhles within thc prcmlscs:
(a) while the premises arc open for buslncss: or
(b) while comained within a lock cd vault or safe.
This docs not Includc loss causcd by unexplaincd
or mysterious dlsappcarance or abstraction.
,( (18) Employee Dishonesty. We will pay for loss of
money, securilles and busincss pcrsonal propcrty
and personal propcrty of othcrs (as dcscribed In
Coverage B) up to 510,000 pcr o,ccurrcnce resulting
from dishoncst acts commlllcd by any of your
employccs, whcther idcntificd or not, acting Blonc
or in collusion with othcr pcrsons (exccpt you or
your parmcr(s) with the intcm to:
(a) causc you to sustain loss; and also
(b) obtain financial bcnefit (other than salarlcs,
commission., fccs, bonuses, promotions,
awards, profit sharing, pensions or other
employce benefilS earncd in thc normal course
of cmplo>111cnt) for:
I. any cmploy.., or
2. any othcr pcnon or organization.
This cxtcnslon Is subject to thc following:
(a) for any loss, our payment shall not excced thc
replacemem cost of business personal propcr-
ty at the timc of loss, except the cost of
securhles may be dctcrmlned by the market
value at the time of settlement:
(b) all loss causcd by, or Involving, one or more
employccs, whcthcr the result of a singtc act
or a scrics of acts, Is considered one occurrence;
(c) we wll\ only pay for loss you sustain through
acts commillcd or cvems occurring during the
policy pcriod and if loss is dlscovercd during
the policy pcrlod or Is discovered within onc
year from the cnd of thc policy period:
(d) our pa>'mem is not increascd rcgardlcss of thc
numbcr of pcople we protcct.
(cl rcgardlcss of the year our policy Is in force, thc
amoum of Insurance shall not be cumulative
from ycar to year.
CO if you sustained a loss during the period of any
prior insurance that you could have recovcred
undcr your prior Insurance except that the time
which to discover thc loss had explrcd, we will
pay the loss under this Extcnsion of Coveragc,
provided:
I. this policy bccame effccti~e lit the time of
cancellation or tcrmination of your prior in-
surancc: and
2. the loss would have bcen covcred by this In.
surance had it been in cffcct whcn the act
or evcnts causing the loss were commillcd
or occurred.
You may apply up to 510,000 or the amount
of insurance under your prior Insurance,
whichcvcr is less.
The loss undcr this part (I) is not an additional
amoum of insurance and will not increase thc
total amol'nt of Insurance for Employcc
Dishonesty.
We do not cover:
(a) loss caused by an>' disholll:st or criminal act
commilled by you or any of your parmers,
whethcr acting alone or in collusion with other
pcrsons.
(b) loss orlhat part of any loss, thc proof of which
as to its exlstcnce or amount is dcpendcnt upon:
I. an inventory computation, or
2. a profit and loss computation.
.14-
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"
,
(c) loss that Is an Indirect rcsult of any act or oc.
currence covercd by this policy including, but
not limited to, loss caused by:
J. four inability to rcallzc income that fOU
would have realized had there bcen no loss
of, or loss from damage to, covcrcd
property.
2. paymclll of damagcs of any typc for which
fOU are Icgally liable. We will pay compen.
satory damages arising from a loss covercd
by this policy,
3. paymelll of costs, fces or other ecpenscs you
incur In cstabllshlng either thc existence or
the amount of loss under this policy.
4. payment of expenscs related to any legal
action.
S. any employee Immcdlatcly upon discovcry
by:
a. fOU, or
b. any of your partners, orocers or dircc.
tors not in collusion with the cmploycc,
of any dlshoncst act commlttcd by that
employee beforc or aftcr bcing hircd by
fOU.
"Employcc" means
(a) any natural person:
I. while in four scrvice (and for 30 days aftcr
termination of service):
2. whom you compcnsalC dlrectl). b)' salary,
wagcs or commissions: and
3. whom fOU have the right to direct and con.
trol while performing services for you.
(b) any natural pcrson employcd by an employ.
ment cOlllractor while that person Is subject to
four direction and control and performing ser-
vices for you excluding, however, any such pcr.
son while having care and custody of property
outside the premises.
"Employcc" docs not mean any:
(a) agent, brokcr, factor, commission mcrchalll,
consigncc, Independent contractor or represcn.
tative of the same general charactcr; or
(h) director or trustcc except while pcrformlng acts
coming within the scope of the usual duties of
an employee.
The deductible for this extension Is 5200.
(19) Key Replacement. [fkeys to your bullding(s) are
stolen during a theft loss, we will pay, at your re.
quest, up to 51,000 to replace thc keys and locks
to the exterior doors of four premises.
,( (20) Eleclronlc Data Processing Equipment .
Mechanical and Electrical Breakdown. We will
cover electronic data processing equipment, data
and media for loss or damage causcd by mechanlcai
breakdown, malfunction, short circuit, blow.out,
electrical Injury, magnetic injury or dlsturbancc to
electronic data processing equipment, data and
media. lye will pay up to SS,Ooo for any onc loss.
COI'cragc Includes any accldclllal crasure of data
causcd bl' clemlcal or magnetic Injur)', or operator
or prosrammcr crror.
Thc caulc of the cicctrlcal dornase must occur in
your building or within 100 fect of It. We will not
covcr loss caulcd b)' any change In electricai power
supply, such al illlcrruptlon, power lurse, or
brown.out unlcll caused by IIshmlns that orlglnatcs
morc than 100 fcct away from thc building cOlllain.
ing your data proccssing opcratlons.
We do nOt cOI'cr:
(a) electronic data processing equipment which
anyone we protect rcnts or Icases to others whllc
it Is away form thc premises dcscrlbcd on thc
Declarations.
(b) media and dOlO which cannot be replaccd with
other of thc same kind or quallt)..
(c) program support documclllatlon such as now
charts, record formats or narrative descriptions
unlesl thc\' arc convened to data form and then
only In that form.
(d) loss causcd by crror or omission or deficlcnc)'
in design, specifications, matcrlals or workman.
ship, uniess fire or explosion cnsues, and then
oni)' for loss, damage or expenle causcd b)'the
ensuins fire or explosion.
,
, .
(c) 1051 causcd by processing opcrations or loss that
occurred while the insured property is bcing
workcd on unless fire or explosion ensue, and
thcn only for loss, damage or expcnle caused
b)' the ensuing fire or cxplosion,
(I) 1015 causcd b)' programming errors or Incorrect-
i)' Instructing the machine.
"Data" mcans facts, concepts or Instructions converted to
a form usable in the data processing operations of anyone
we protect. This Includes computer programs, but not
media.
"Electronic data processing equipment" means computers,
terminals, teleprinters, rcaders, computerized cash registers,
word processing equipmelll, and equipmclll and parts
related to the proccsslng unit.
"Media" mcans materials on which data arc recordcd, such
as magnctlc tapes, disc packs, paper tapes and cards.
CONOI710NS. ii:.,::71CH I
,., ...:.,:..\..i:I:,'.\l::,- ::F :~':.:=.='7'!
We nced not acccpl abandoned property.
:' ..\?P~..\iS':''..
If fOU and we fall to agrcc on thc amoulll of loss, eithcr
.15.
.
.
party may make wrlncn demand for an appraisal. Each
party will select an appraiser and notify the othcr of the
appraiser's Identity within 20 days after the demand Is re.
eelved, The appraisers will select a competent and Impar.
tlal umpire, Ir the appralscrs arc unable 10 aaree upon an
umpire within IS days aftcr both appraisers have been Iden-
tined, you or we can ask a judae of a court of record in
the state whcre your principal oroce Is locatcd 10 sclect
an umpire,
The appralscrs shall then set the amount of loss, If the ap'
praisers submit a wrincn report of an aareemcnt to us, the
amount aareed upon shall be the amount of loss, Ir they
cannot aaree, they will submit their dlrrercnees to the um.
plre, A written award b)'lwo will dctermine the amount of
loss.
Each party will pay the appraiser It chooses, and equally
bear expcnscs of the appraisal. Howcver, If the written de.
mand for appraisal Is made by us, we wlil pay for the
reasonable cost of your appraiser and your share of the cOSt
of the umpire,
We wlil not be held 10 have waived an)' rights by an)' aCI
relating to appraisal.
~"':'-:--= ....-: ..-
The breach of a polle)' condition or warrant). In one building
or location will have no effect on the covcrage on another
where no breach exlm.
\:~:':~: ':'::--:':"-.....01 :._~...-..:.:...h... \.~"
....... "-:"""":1"''\::
. '.. -.. ... .".
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,
,
We will pay for an)" loss of income caused by damage to
electronic media and records for:
(a) sixty consecutive days after the loss; or
(b) the pcrlod necessary 10 repair, rebuild or rcplace,
with rClllon~bl~ speed and similar quality, other pro-
perty at the insurcd premises due to loss caused b)'
the same occurrence;
whichever Is the longer pcrlod.
Electronic mcdia and records mean:
(a) eiectronlc data processing, recording or storage
media such lIS films, tapes, discs, drums or cells;
(b) dala stored on such media; or
(c) proarammlng records used for elcctronic dala
processlna or eiectronlcally controlled quipmcnt,
This condition docs not apply to extra expense.
'.. .l'IC~=A5c!N ;-!AZ)..=10
Unless we agrec beforehand, coverage Is suspended if the
hazard is substantlall)' increased by any means within the
connol or knowledge of anyone we protect.
'..~'SS ~ 1.'/\1'::-;7
We will adjust alllossC5 with you, We will pay you unless
some other person is namcd in the policy or Is legall)" entitl.
ed to receive pa)mcot. We will not pay you more than your
nnanclal intcrest In the covcred property.
Loss will be payable 30 days after we receive your proof of
loss and one of Ihe followina has bccn donc:
(a) we have reachcd an agreement with you; or
(b) thcre is an cntry of nnal Judament; or
(cl Ihere Is a filing of an appraisal award on your bchalf.
We have the option to:
(a) pa)' Ihe valuc of the damaaed property:
(b) pal' thc cost 10 rcpalr or rcplace the damaged
prOpcrl)';
(c) take all or part of the damaaed property at an aareed
or appraised value; or
(d) repair or replace the damaacd property with material
of Ilkc kind and quality,
Loss shall be pa)'ablc to mortgaaccs named on the Declara-
tluns, to Ihe ..'tcm of thclr interesl and In Ihe ordcr of
precedence.
We will:
(a) protcct the mortgagee's Imerest in an insured
building, This protection will not be invalidated bl'
an)" act of ncglecl of anyone we protect, any breach
of warram)', incrcase in hazard. chanae of owncr.
ship, or foreclosure if thc mortgagee has no
knowledge of thcse conditions.
(b) give mortgagee 30 dal's notice before canccllatlon
or refusal to renew this pollc)'.
The mortgagce will:
(a) furnish proof of loss within 60 days if you fail to
do so,
(b) pay upon demand any premium due If you fail to
do so.
(c) notif)" us of an)' change of ownership or oecupan.
cy, or any increase in hazard of which the mortgagee
has knowlcdge.
(d) give us his or her right of rccovery against any par-
ty lIablc for loss, This shall not impair the right of
the mortgagee to recovcr the full amount of the
mortgage debt.
(e) after a loss, permit us to satisfy the mortgage re.
quircmcnts, and receive full transfcr of the mortgage
and all securities held as collatcral to the mortgagc
debt.
Policy conditions rclating to APPRAISAL, LOSS PAY.
MENT and SUIT AGAINST US apply to the mongagce.
,
This mortgagec illlerest provision shall apply to any trustee
or loss payee named on Ihe Declarations,
'.r: ==:'1::='-:- 7.j ;16.\.::
No ballce shall bcncnt, dlreetly or Indirectly, from this
insurance.
:-''';=~ .~IS~~~)..'IC!
Othcr insurancc is not pcrmined. This policy is excess to
any othcr insurancc.
-16-
Virginia Only:
Othcr Insurance ma~' be prohlbitcd or the amounr of in.
surance mal' bc IImitcd b~' an endorscment allachcd to your
polk}'.
If both this insurance and othcr Insurancc apply to a loss,
we will pay our share. Our share will be thc proportionate
amounrthat thlslnsuranee bears to thc total amount of all
applicable insurance.
..... . ~ .... ..,
-. .....
.. . -. .......
. .....',
"'.... -..
If we are call cd upon to pay a loss for property of othcrs,
we rescrve the right to adJust the loss with the owncr. If we
pay the oy,llcr, such pa~menlS will satisfy your claims against
us for the owner's property.
In case of dlsagrccmenr, we will cOnductlhe dcfense on your
behalf al our expense.
~:-: ."~: ."i: ~";:;'.:'\~':~ ,,~~~.\....,
You mustmainraln, so far as 15 within your conrrol, any
protective safeguards shown on the Declarations. Failure to
do so will suspend the coverage of this policy at thc affected
location. Covcrage will not be suspendcd if you notify us
immcdlalcl}' when the s~'stem is nOl in opcration because
of rcpairs or maintenance, and you compl)' Y,ilh our requests
and dircctions at lhat lime.
You must kcep propcr rccords 50 that we can accuralel~'
dcterminc thc amounr of loss.
If cither you or we rccovcr any propcrt~. after scnlcmcnr,
that party must notify the other. Expcnses of recovcry will
be deduclcd from thc value of the propcrt~.. The balance
of the proceeds will be divided aecordlng to your and our
inrerests.
At your option, the recovered property will be retumcd to
you. You must then return 10 us the amounr we paid to you
for the property. We will pay the cxpcnses of recovery and
thc expcnses to repair the recovered propcrty, up to the limit
. of Insurance.
.. . . ..
: .. .." ...:. ',.
. - ~ . ... .... ~-
.. ...: .....' :......:.:
After a covcrcd loss to your bulldlng(s) undcr Coverage A
or business personal property under Coverage B, our
paymcnts will be on a replacemcnr cost basis, instead of an
actual wh value basis, lhcreby cllmlnallng dcductlon for
depredation. Payment will not exceed the limits of Insurance
shown on lhe Declarallons.
We will not pay rcplacement cost until the damagcd or
dcstroycd property is actually rcpaired or replaccd as soon
as pracllcable.
We will pay the smaller of the following:
(a) lhe cost of replacc:menr on the same premises with
material of like kind and quality and Inrendcd for
the same use, or
(b) the amount actually spent In rcpairing or rcplac.
Ing the propcrty.
III ordcr 10 obtain rcplaccmcnt COli on busincss pcrsonal
propcrt}', the amounr of insurance shown on the Declara.
tluns for busincss pcrsonal property mUll bc 100% or more
of your averagc monrhiy values for thc last 12 monrhs
prcccdlng the date of loss. In the cvcnt yuu have been In
busllless for less than 12 monrhs, thc a\'crage monthly value
will be based on lhc shortcr period of time.
We will not pay for luss on a replaccmcnr COli basis:
(a) due to an~' ordinance or law regulating the con.
structlon or rcpair of buildings;
(b) to stock (raw, in process or finished) or merchan.
dlse Including matcrlals and supplies in connection
therewith:
(e) to propert~. of othcrs;
(d) to houschold furnlturc or apartmenr and dwclllng
conrenrs:
(e) to manuscripts;
(I) 10 paintings. etchings, pictures, lapestries, slatuar~',
marblcs. bronzes, antique furniture, rare books, an.
tlque silver, porcclalns, rare glassware and bric.a.
brae, or othcr articles of art, rarlt~. or antiquity:
(g) to obsolm propcrty.
You may choose 10 accept pa~mcnr on an actual cash value
basis. If you do choose an actual cash value basis, you can
stili select a rcplaccmcm cost basis if the building or business
personal property 15 repaircd or replaced within 6 monrhs
of 1055.
We may not bc sued unless thcre 15 full compliance with all
the terms of this policr. SUil must be brought wllhln two
~'cars (Mar}'land . 3 }'cars) after the luss occurs.
- . .
... ,-.
Property mal' bc unoccupied without limit of time. If the
building at which the loss occurs Is \'acant for more than
60 consecutive days bcfore that loss, thcn we will:
(a) not pay for any loss causcd b}':
I. vandalism or malielous mischief, glass breakage
or thcft,
2. sprinkler leakage unless you have excrc\sed
reasonable care to protect the system against
frcezing;
(b) pay for othcr covercd losses, but we will reduce the
amount of pa}'mcnt by IS"'..
A building is vacant whcn it does not conraln enough
business personal property to conduct customary operations.
,
Buildings under construction are not considered vacant.
.. ..". .. - -- -- ...., .
:.. . ... ':.' ... .... ;,..:.
In case of a covcred loss, you must perform the following
duties:
(a) give us or our Agcntlmmedlate no lice, If a crime
loss, also notify the police (excepl Virginia):
(b) protect the propcrty from further damage. If
ncccssary for property protection, make
.17-
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"
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reasonablc rcpalrs and kcep a rccord of all rcpair
cosu;
(c) furnish a complete Invclllory of dl101agcd propcr.
ty stating Its original cost. At oor requcst, furnish
a complete Inventory of undamagcd propcrty
stating ItS original cost. If a loss Is both less than
510,000 and 5"10 of the amoul\t of Insurance, no
special inventory and appraisal of the undamaged
propcrty shall be required;
(d) produce for exlUlllnatlon, with permission to COP)',
all books of accountS, bills, Invoices, rccelplS and
other vouchers as we ma)' rcasonably require;
(c) show os or our rcpresentatlvc the damagcd propcr.
ty, lIS often as may be rcasonably requircd;
(I') submit to examinations under oath and sign a
transcript of thc same;
(g) send os, within 90 days after the loss, your signed
and sworn to proof of loss statemcnt which
Includes:
i '.' -=1' i-of .- ".. . I;:.,
.1..4_ '., I 1<1,"... ... c/
Your polley prol'ldes liability protection for all operations
and all locations. For coverage to apply, you must tell us
about all your opera/Ions and loco/ions you are aware of
at the beginning of the polley period. If you acquire addi.
tlonal loco/ions or perform any new opera/ions during the
polley period, they are au/oma//cally covered for /he res/
of the polley period. A/ renewal time you mus//ell us about
these additional locations and new operations In order for
coverage to continue. If you do not tell us abou//hese ad-
dltlonalloca/lons and new opera/Ions, coverage for them
stops at the end of the polley period.
':Crl ~:\CM!S:
-:: :~:icn~l :n~:.;rl I..locillty " 1,:,j'/€:r"o;~ .:.
:;:perty O~r:l~t;:! 1_!at:i1lt'/.. CCV'l!'ng9 =
We will pay for damages because of personal Injury or pro-
perlY damage for which the iaw hoids anyone we protect
responsible and which arc covered by your policy. We covcr
only personal Injury and properlY damage which occurs dur-
ing the policy period. The personal Injury or property
damage must bc caused by an occurrence which takcs placc
In the covcred territory,
We will pay any additional sums or pcrform any additional
acts or services that arc explicitly covcred undcr WHAT WE
ALSO PAY, and nothing else.
.~d"ertlsing inlur/ Liability. Co"eroge ;:
We will pay for damagcs because of advcrtlslng Injury for
which the law holds anyone we protect responsible and
which are covcrcd by your policy. We cover only advertls.
Ing Injury causcd by an offensc commillcd during thc
I. time and cause of loss;
2. your Interest In the propcrty and the intcrcst of
all others Involved;
3. any encumbranccs on thc property;
4. other policies which may covcr the loss;
5. any changes In title, usc, occupancy or posses.
51 on of the property which occurred during thc
policy term;
6. when requlrcd by us any plans, spccincatlons
and cstlmatcs for Ihc repair of the damaged
building;
7. the invclllory of damagcd propcrty lIS prcparcd
in (c) above;
(h) in addition to thc other conditions under RClllal
Income Prolection (Covcragc C), make ncecssary
rcplaccmcllls or rcpalrs and resume operalions as
soon lIS possible;
(I) agree to hclp us enforce any right of recovery
againsl any pari)' liable for loss under this policy.
This will not apply If you have walvcd recovcry
rightS in writing prior to a Inss,
: \. . <:. .; " ,... I ,
polic)' pcriod and in thc course of advertising your goods,
products or scrviccs and which takcs place in the covercd
Icrrltor)'.
We will pay any additional sums or perform an)' additional
aClS or scrviecs Ihal arc cxplicitl). covercd undcr WHAT WE
ALSO PAY, and nothing clse.
".. ...",,_.
::. -::- :
~ :''-;.:~ = -:
We will pay all reasflllablc medical expcnses to an)' pcrson
injured by an occurrence. We covcr only mcdical expcnscs
rcsulting from an occurrence which takes place during thc
policy pcriod and in Ihe covered lerrllory. The services must
bc rendcrcd within thrce years of Ihe occurrence. The oc.
currence must arisc from a condldon In Ihe premises or
opcrations shown on the Declarations. The thrce ycar limita-
tion does nOI apply to funeral expenscs.
Mcdical expcnses include:
(I) mcdicaJ, surgical, x.ray and dental scrvices, inciudin\
prosthctic devices, and
(2) ambulance, hospital, profcssional nursing and funcra
scrvices.
:;v'/af~gas .::. ::. ,= Jlj~ >3:
We may investigate or scttle any ciaim or suit for damagc
against anyone we protect, at our cxpcnse. If anyone we prL
tecl is sucd for damagcs covered by this policy, we will d,
fend with a lawycr we choose, cvcn if the allegations ar
not true. Our obligation to pay any claim or judgmclll (
dcfcnd any suit cnds when we havc uscd up our limit of p/l
tcction by pa)ing judgmcllls or scttlemcnts undcr Covcrag.
0, E, F or G.
-18-
The amoulIl we pay for damages Is Iimhed as described in
LIMITS OF PROTECTION.
',\j}IJ.~ '.I/! A".'s.: ,:.\-(
Paymcm for the following Is In addition to the limits of pro.
tcction shown on th~ Declarations.
:::t.- : :':~"3~':3
We will pay:
(I) all expenses we incur and all costs taxcd against
anyone we protect in a suit We defcnd.
(2) alllntcrcst on the full amount of any Judgmcnt on
a suit we defcnd, until We offer or deposit In court
the amount for which we are liable.
(3) pre.judgmcnt illlcrest awarded on the amount of the
judgment we pal', If We offcr to pay the applicable
limit of protection, We will not pay any prc-judgment
intcrest for the period of time after the offcr.
(4) all rensonable expenscs Incurrcd by anyone we pro.
teet at our request to nsslst us in the investigation
or defense of any claim or suit. This includes actual
loss of earnings up to 5150 pcr dal' because of time
off from work,
(S) premiums on appeal bonds In a suit We defcnd, and
on attachmem bonds to rclense property of anyone
we protect, but not for bond amouats grcater than
the limit of prOtection for the coverage that applies.
We will also par up to 5S00 for cach bali bond re.
qulred of anyone we protect bccausc of an accidcm
or tr:1ffic violation arising out of thc use of a vchi.
c1e covered br this policy. We havc no obligation
to apply for or furnish such bonds.
(6) all rensonablc lawl'ers' fecs up to SSO that anyone
we protect incurs because of arrcst, resulting from
an accidem involving a vehicle eovcred by this
policy.
.
. .
. ,':; ..,...; .:..I,=-:::':i
We will pay rcasonable cxpcnses for first aid to other peo.
- ,; pie and animals at the time of an accidcnt involving anyone
. we protect.
';:;:'7' ,'J! :': ~1-:7 :':'l!.::. !:~ :"'J:S":~li
A. We do not cover under Personal Injury Liability
(Covcrage D), Property Damage Liability (Covcrage E)
and Mcdlcal Pa)ments (Coverage 0):
(I) injury or damage expcetcd or intcnded from the
standpoint of anyone we protect. This doc'S not app.
Iy to personal injury or property damage resulting
from your protecting persons or property.
(2) the owncrship, malmenanec, use or entrustmcntto
others of an automobile, alrcr:llt or watercraft 0\\11-
cd or operated bl' or remcd or loancd to anyone we
protect. Use includes operation and loading or
unloading. "Loading or unloading of an
automobile, aircraft or watcrcraft" means thc handl.
ing of propert)':
(a) aftcr It Is moved from the place whcre it Is aC'
ecplcd for movement imo or on an automobile,
alrcralt or watcrcraft; or
(b) while It Is In or on an automobile, aircraft or
watercraft: or
(e) while It is bclng moved from an automubile, air-
craft or watcrcraft to the place where it Is final.
lr dclivered.
Loading or unloading of an automobile, aircraft or
watercraft docs not include the movcment of pro.
perty br means of a mechanical device (othcr than
a hand trud) not allaehcd to the automobile, air-
croft or watcrcr:1ft.
This cxduslon docs not apply to:
(a) parking an automobile on premises owned or
rcntcd br you, or while parking the automobile
on the wa)'s and means adjoining your prcmises,
if the automobile is not owned by or rentcd or
loaned to anyone we protect:
(b) liability :lSsumcd undcr an insured contract for
the ownership, malmenance or use of aircraft
or watercraft;
(e) Iiabllill' arising out of thc opcratlons of equip.
ment listed under parts (6)(b) and (c) of the
definition of "mublle equipment":
(d) watercraft while nshore on premises you 01'11 or
rent: or
(c) the usc of non,o\\l1cd watercraft 32 fCCl or undcr
in length that arc not bclng used to carry per.
sons or propcrt). for a ehargc.
(3) thc use of mobile equipment while used in or prepar-
ing for a prc-arranged racing, speed or dcmolition
contest or stullling activity.
(4) thc transportation of mobile equipment by an
automobile oWl1ed, rellled, borrowed or operated by
anyone we proteel.
(S) damages for which anyone we protect may be liable
by reason of:
(a) causing or contributing to the intoxication of any
person:
(b) the furnishing of alcoholic beverages to a per.
son undcr the Icgal drinking age or under the
innuence of alcohol: or
(e) an>' stalute, ordinance or regulation relating to
the sale, gift, distribution or use of alcoholic
bcvcrages.
This cxclusion applies only if anyone we protect is
engaged in the business of manufacturing,
distributing, selling, serving or furnishing alcoholic
beverages.
This exclusion IS) docs not apply to liability of
anyone we protect or the Indemnltce of anyone we
protect arising OUI of the giving or serving of
alcoholic beveragcs at functions Incidental to your
business, provldcd you arc not engaged In the
business of manufacturing, distributing, selling or
serving of alcoholic bcvcrages.
.19.
(6) damases resultlns from war, whcthcr dcclarcd or
undcclared. dlseharse of a nuclear wcapon (cven If
aeddclllal), hostile or warlike action In tlllle of peee
or war ,Insurrection, rebclllon, revolution, civil Wlll',
usurped powcr, IncludlnS action takcn by govern.
mental authorlt)' In defcndlns aslllnst such 1III
occurrcnce,
(7) dllll1ascs due to
(a) the renderins of or failure to render:
I. diagnostic, mcdlcal, surslcal, dClllal, x.ray or
nursing service or treatment, or the fur.
nlshlng of food or bevcrages with them, or
2. ambulance; paramedical, rescue squad or
other service or trcatmclll conducive to
health:
(b) lhc furnishing or dispensing of drugs or IIIcdlcal,
dClllal or surgiealsupplics or appliances;
(c) lhc handling of or pcrforming of autopsies;
(d) thc rendering of or failure to render cosmctlc,
car piercing, tonsorial, massage, ph)'siotherapy,
chiropod)', hearing aid, optical or optomctrical
scrvlees or trcallllents; or
(c) an)' service of a professional nature, Including
but not IImltcd to:
I. the preparation or approval of maps, plans,
opinions, rcportS, surveys, dcslgns, or
spcciOcalions and
2. supervisor)', inspection or engineerins
scrvlccs.
B. We do not cover undcr Personal Injury liability
(Coverase D) lIIId Propcrl)' Dalllage liability (Covcragc
E):
(I) lIabilit). assumcd b)' anyone we protect in a cOlllract
or agrcement. This cxclusion docs not apply to
liability:
(a) assumcd in a COlllract or agrccmelll that is 1III
Insured contract; or
(b) that anyone we protect would have in the
absence of the cOlllract or agreement.
(2) (a) damagcs arising out of the actual, ailegcd or
threatened dischlll'ge, dispersal, release or cscape
of pollutants:
I. at or frolll premiscs you own, rclll or occupy:
2. at or from any site or location uscd by or for
you or othcrs for the handling, storage,
disposal, processing or treatmcnt of wastc;
3. which arc at an)' tlmc transporled, handlcd,
stored, treated, dlsposcd of, or processcd lIS
wllSte by or for you or an)' person or
orsanizatlon for whom you iliaI' be lesally
rcsponsible; or
4. at or from any site or location on which you
or any contractors or subcontractors work.
Ins dircctl). or Indlrcctly on your behalf arc
performing opcrations:
a, If lhc pollutants arc brousht on or to the
site or local Ion in conncction with such
operations, or
b. If theopcratlons arc to test for, monitor
clean up, remove, contain, treat, dcto\
If I' or neutralize the pollutants.
(b) any 1055, cost or cxpense arlslns out of an
sovcrnmclIIlII direction or request that you te!
for, monitor, clean up, remove, contain, trca:
dctodfy or neutralize pollutants.
Subparagraphs I. and 4,a. of parasraph (a) of lh'
c."luslon do not appl)'to personal Injury or properl
damage causcd by heat, smoke or fumes frolll
hostllc Ore, As used In this exclusion, a hostile fir
means one which becomcs uncolllrollable or brcak
out from where It Wlls Intended to bc.
(3) 1III)' obligation of anyone we prot..t undcr ar.
workcrs compensation, unemploymclII compcns'
tion, disability benefits law or any similar law
(4) (a) bodily Injury to cmployccs of anyone we PI',
lect arising OUt of their emplo)mclII b)' any or
we protect for which anyone we protect m,
be held liable as an employer or In an)' oth
capaclt).;
(b) any obllsatlon of anyone we protect to indcr.
nify or contributc with anothcr bccausc '
damascs arising out of lhe bodily Injury;
(c) bodily Injury sU51ained by the spouse, chi!
plll'cnt, brother or sister of an cmplo)'ee '
anyone we protect as a consequence of hod;
Injury to the cmployee arislns out of emplo
mcnt by anyone we protect.
This cxcluslon applies to all claims and suits b)' a:
person or organization for damages bccausc
such bodily InJury, Including damages for care a:
ioss of scrviccs,
This cxcluslon docs not apply to liability ass urn
by anyone we protect undcr an Insured conlra'
(5) undcr partS (2) and (3) of the personal Inju
dcfinitlon:
(a) contractual liability, exccpt liability I
damagcs that anyone we prolect would h;.
in the absencc of lhe eOlllract or agrcemc:
(b) willful violation of a law or ordinance;
(c) injury orising out of advertising, publishir
broadcasting or tcievlsion aetivltlcs.
(6) SUllS for libel, slandcr or defamation of eharac
made against anyone we protect If thc publlcat;
or statelllclII;
(a) took place before the effective date of this
suranec: or
(b) Wlls knowingly untrue.
(7) properly damage to properlY anyone we prul
owns, rcnts or occupics. This exclusion does I
apply to protcction providcd In Extcnsion
Covcragc . (I) Fire lcgal LiabilllY.
.20-
_. '
.,
.
, (8) property damave to
(a) premises you lcll, alvc aIVay or abandon If the
property damase ariles out of lIIIY part of tholC
premises. We wiU covcr thole premiscs which
are your work lIIId which werc ncvcr oceupled,
rentcd or held for rental by you:
(b) property which is loancd to anyone we protect:
(e) pcrsonlll property In your Clll'e, custody or
control;
(d) that particular part of rcal property upon
which opcralions llI'e being performed by you
or any contractor or subcontractor working
directly or indircctly on your bchaif, If the pro-
perly damase arlscs out of those operations;
(e) that particular part of any property that mUlt
be rcstorec, rcpalred or replaccd because your
work was faulty. We wiU covcr property
damase included In the products hazard and
completed operations hazard.
This exclusion does not apply to liability assumed
undcr a sidetrack agreemcnt.
(9) property damase to your product arising OUt of
such product or any pare or portion of It.
(10) property damase to your work arising out of your
work or an)' portion of It but only wilh respect to
the completed operations hazard.
This exclusion does not appi)'lf the damaged work
or the work out of which the damage arises was
performed on your behalf bl' a subcontractor.
(II) property damase to Impaired property or tangible
properlY nOt ph)'sleally injurcd or destro)'ed,
resuitlng from:
(a) delay In or lack of pcrformance on a contract
or agreement by or for you; or
(b) a defect, dcflclcncy, Inadequacy or dangerous
condition in your product or your work.
We will pay for Joss of use of Impaired property
or other tllllglble property resuitlng from sudden
and accldentlll physical damage to your product or
your work after it has been put to Its Intended use.
(12) damages claimed for any loss, cost or expcnse in.
curred by you or others for the loss of use,
withdrawal, Inspection, replacement, recall, repair,
adjustment, removlll or disposal of:
(a) your product;
(b) your work; or
(c) Impaired property:
If such product, work, or propcrty is wilhdraIVn
or reclllled from the market or from use by lIIIY per-
son or organization because of a known or
suspcctcd dcfect, deficiency, Inadcquacy or
dangerous condition in It.
C. We do not cover under Advertising Injury L1abUlty
(Coverage F):
(I) liability assumcd by anyone we protect under any
contract or agrc:emcnt. this exclusion does not apply
to lIabilily anyone we protect would have In the
absence of the contract or aarcement.
(2) advertlslnv Injury arlslna out of thc \\illfui violation
of a penlllltatute or ordlnllllce committed by or with
thc knowlcdge or conlent of anyone we protect.
(3) advertlslnv Injury llI'islng out of oral or wrlllen
publication of matcrlal whosc flm publication took
place bcfore the bcglnnlng of the polley pcrlod,
(4) advertlslnv Injury arising out of oral or wriltcn
publication of material, If done b)' or at the direc.
tion of anyone we protect with the knowlcdae that
It Is falsc.
(5) ad\'ertlslns Injury arising OUt of:
(a) breach of a contract, other thllll mlsapproprla.
tion of advcrtislng ideas under an Impllcd
contract;
(b) the failure of goods, produClS or scrvices to con.
form with advertised quailty or performance;
(c) the wrong description of thc price of goods, pro-
ducts or services.
(6) advertlslns Injury arising OUt of lIII offense commit-
tcd by anyone we protect whosc business Is adver.
tislng, broadcasting, publishing or tclccasling.
D. We do nOt cover under Mcdlcal Pal'ments (Covcragc 0)
cxpcnscs for bodily injury to:
(I) anyone we protect.
(2) an)' pcrson
(a) injured on that part of premises you own or rcnt
and that the pcrson normllliy occupies;
(b) hired to do work for or on behaif of anyone we
protect or a tenant of anyone we protect:
(c) if benefits are payable under any workers com-
pensation, unemploymcnt compensalio~,.
disabilit). benefits law or similar law: or
(d) Injurcd while taking part In athlctic:s.
~;~1J'73 Or ~:107~ej1~}1
Our duty to pay the sums reeovcrable under this policy for
which the law holds anyone we pro teet responsible is sub-
jectto the limits shown on the Declarations. For the pur-
pose of determining our limit of Ilabilily, all personal In-
Jury, property damage, advertising Injury and medical
payments arising out of continuous or repeated exposure
to the same general harmful conditions shall bc considered
one occurrence.
Our IImil of liability Is not'increased regardless of the
number of pcople we prOlcct, claims made or persons in-
jured as a result of an occurrence.
?3:'scnill !nJu.o:1 !..:.a~iU:'! . :c'tarilCJ,J ~
:::~pe(:'l ::~i'r.a;.! ~:a!:Hil:" . .:..:.,!:*~~: :
Ad1/ertlslr.g I:.i:.:rl ~:u:iiH:, . r::~v'!fag! :=
Me1lc:11 .~'J~Ji.1~~iS . C.:l'J>!t~ga G
The amount shown on the Declaralions for "EACH OC.
CURRENCE" is the total limit ofprotcCllon for all damages
.21-
-,
because of personal InJury, property damA~e, Ad\'Crtl~ln~
Injury, or mcdlcal expense to onc or more pcrlons or
orSanlzatlons as a result of anyone uecurrence,
The amount shown on the DeclarAtions for "POLICY
AGGREGATE" Is the total limit of protcctlon for All
damases because of All:
(\) property damAse,
(2) Advertising InJury,
(3) medical expense,
(4) personllllnjury undcr parts (2) and (3) of thc personal
Injury dennltlon,
(S) coverage provided under the completed operations
hllzllrd,
(6) coverage provided under thc products hAzard, or
(7) coverage provided under the Extcnslons of Co\'crage -
Section 11,
as a result of one or more occurrences.
, .1 . _ =.... _ ~.. ! . " :"~":' ~
. .. . . . -
Thc amount shown on the DeclarAtions for "EACH PER.
SON"ls the tou..Ilimlt of protection for all mcdical ..,pcnses
to anyone person as a result of an~' one occurrence.
The Limits of Protection for this policy apply separatcly to
each consecutive annual pcrlod and to any rcmwnlng period
of less than 12 momhs, starting with the Inception date of
the polley pcriod shown on the Declarations. tr the policy
period is extended aftcr the poll~'ls issued for an additional
period of Icss than 12 months, then the additional period
will be decmcd part of the last preceding period for pur-
poses of determining the Limits of Prolcction.
!:~'7!~jS1C~;S :,. O::.l'S:=t~O;: . S:Ci'C~i i!
,
.
Resardlcss of the number of pcople we protecl, e1wms madc,
persons injured, or da.mage to propcrty of one or more par-
tics, our total payment under the Extcnsions of Coverase
. Sccllon 11 for all dam~ges because of one occurrence Is
subject to the "EACH OCCURRENCE" limit shown on
the Declaratiuns,
Our total payment under these Extensions of Coverage. Scc.
tlon 11 for all damases beeausc of an occurrence or occur.
rences which takc(s) place in caeh ~'ear of the policy pcriod
Is subject to the "AGGREGATE" limit shown on the
Declllratlons.
':; :=!re Ugai Liability
We will pay all sums, up to the "each oecurrcnee" limit
shown on the Declarations, which anyone we protect
becomes leSAlly oblisated to pay for damase to buildings
rented to or oeeuplcd by anyone we protect, which arc
described on the Declllrlltlons. The damagc must be caused
by nre, IIshming, windstorm, hail, explosion, riot, civil com.
motion, vehicles, aircraft, smoke, vandalism, malicious
mischief or elevator collision.
The sums paid undcr Fire Legal Liability are an additional
amount of Insurance.
We do not eovcr liability assumcd by llnyone we protccl.
'. '. . .~..: '~....;l'~~;": ",1"': ,-;:1:
, ,....-...
"" .'" ...-'
1....3~1 ; ;'J "itiUrar,,:J
"';n:: ;", ~ ...,~:.:;;-! _:~c,,;~\!
We will pa~' all sums which Anyone we protect becomes Icgal-
Iy obllsalcd to pay as damages bccause of persunAllnJury
or property dAmAse arising out of the malntcnancc or usc
of hired AulOmobllcs by you or your cmplo~'ces In the course
of yuur business,
,,;. . ~ " ';;.. ,,_.~'.;, ;: - . ;
We will pay all sums which llnyone ;,'e protect becomcs Icgal-
Iy obllsatcd to pa~' as damascs bccause of personllllnjury
or property damAse arising out of the use of llIlY non-owncd
llutomoblle In your buslncss b~'llIlY pcrson othcr thllll you.
The dcnnltion of Anyone we protect and Insured (Seclion
11) docs not apply llIld is replaced by:
"Anyone we protect" llIld "Insured" mcans:
(a) you;
(b) any other pcrlon using a hired Automobile, with
your pcrmission;
(c) with respect to a non.owned Automobile, any part,
ner or cxccutive orficcr of yours, but only whilc sud
automobile is bcing used In your business;
(d) an>' Olhcr person or orsanizatlon, but only witI-,
rcspect to liability bccause of acts or omissions 0
anyone we protect undcr (a), (b) or (c) above.
"Anyone we prutect" docs not Include:
(a) an~' person ensased in the buslncss of thci
employer, with respcct to bodily Injury to llIlY fcllo\
co-cmployec of such pcrson Injured In the course 0
empio~mem;
(b) any partner or executive orncer with respecl to a
Automobile owned b~' such parmcr or orricer or
" . member of their houschold;
(c) llIl~' person while cmplo~'ed in or otherwise engage
in duties in connection with llIl automobile buslnes
othcr lhan an automobile business you opcralc;
(d) the owner or lessee (of whom you arc sublessee) \
a hired Automobile or the owncr of a non,owlll
automobile or any asem or employce of any su,
owner or iessce;
(c) llIl~' person or organization with respcct to the co
duct of any currcm or past partncrshlp or joim vc
turc that Is not shown as a nllmed Insured on t
DeclllrAtlons.
"Automobile business" mcans the business or oceupati.
of scllins, repalrJns, scrvlcing, storing or parki
llutomoblles.
"Hired Automobile" mcans any llutomobile you lcasc, h
or borrow. This does not Include any llutomobile you Ica
hirc, or borrow from any of your employces or memb
of thc;r houschoids, or from any partner or cxecutlvc
nccr of yours.
"~on.owncd Automobilc" means any Automobile you
not own, Icasc, hirc or borrow which is uscd in connccl:
with your business. Howcver, If you arc a parmershir-
non.owncd Automobile does include any Automol
.22-
oIVncd by or rcslmrcd In the namc of a partncr, but onl)'
while such automobile Is bclns uscd In your buslncss.
The exclusions in your policy, olhcr than Exclusions A. (I),
A, (6), B. (I), B. (2) and B. (3), arc dclctcd and rcplaccd
by the followins:
We do not cover:
(a) 1, bodily Injury to cmployeL'S of anyone we protect
arlsinS out of their cmployment by anyone we
protect for which anyone we protect may bc hcld
liable as an cmployer or in any other capacity.
2. any obllsatlon of anyone we protect to indem.
nlfy or eontributc with another bccause of
damascs arlslns out of the bodily InJury.
3. bodily Injury sustained by the spouse, child,
parcnt, brother or sister of an cmployee of
anyone we protect lIS a conscqucnce of bodily In.
jury to the employee arising out of cmpioymcnt
by anyone we protect.
This exclusion applies to all claims and suits by an)'
pcrson or orsanlzation for damagcs bccause of such
bodily Injury, includlns damagcs for care and 10;5
of scrvlccs.
This c.,cluslon docs not appl)' to:
I. liability assumed by anyone we protect under an
Insured contract; or
2. bodily Injury arising out of and in thc course of
domcstic cmployment by anyone we protect,
unlcss benefits for such injury arc in whole or
In part pa)'lIble or required to be providcd undcr
any workers compensation law.
(b) property damage to property owned or bcing
transported by or rented or loaned to anyone we
protect. .
(c) properlY damage to propertyln the care, custody or
control of anyone we protect.
-'
,
.
~ ~o.l:::;='o;:!::': ;:::::~. ::'.;'::~:
We will pay nil sums which anyone we protect bccomcs Icgai.
Iy obligated to pay lIS damagcs beeause of property damage
to automobiles parkcd or storcd on the premiscs descrlbcd
on the Declarations. The property damage must be c:nuscd
by fire, explosion, riot, civil commotion, theft of an entire
vehicle, vandalism, malicious mlsehlcf, collision or upsct.
We do not cover:
(a) liability lI5sumed by anyone we protect in a contract
or agreement, This exclusion docs not apply to:
I. liability lI5sumcd in a contract or agreement that
Is an Insured contract, or
2. lIablllty that anyone we protect would have In the
absence of the contract or agreemcnt.
(b) automobiles owncd, renled, hcld for dcmonstration
or sale by anyone we protect.
(c) thcft by you or any of your cmployccs. dlrcctors,
trustccs or authorizcd reprcscntatlves.
(d) thc usc of any automobile clevator or hoist.
(c) property damase to dcfcetive parts, aeccssorles or
matcrlais furnishcd or to faulty work performed on
an automobUe,
(l) lhc ownership or use of an automobile while
operatcd In any prcarranged racing, spced or dcmoll.
lion contcst or stunting activity.
We will pay the amount of loss to automobiles in anyone
occurrence which is in exccss of the S 100 deductible.
We may pay pan or all of the S 100 deductible to scttle any
claim or suit. If we do 50, you will rcpay us,
If you make the repairs, we will pay your actual cost minus
the dcductlblc.
... ...' .... ...,.'
Thc definition of bodily Injury Is extcndcd to Include In.
cidcntal mcdlcal malpractice Injury, "(ncidcntal mcdlcal
malpractlcc InJur)'" mcans injury arlslns out of the rendcr.
ing of or fallurc to rendcr, during the pollc)' period, the
following scrviccs:
(a) diagnostic, mcdical, surgical, dcntal, x.ray or nurs-
Ing scrvicc or treatmcnt or the furnishing of food
or bcvcrallcs in conncction with thc service or trcat.
mcnt, or
(b) thc furnishing or dispensing of drugs or mcdlcal,
dental or sursical suppllcs or appllanccs.
We do not cover:
(a) cxpcnscs Incurred by anyone we protect for first aJd
to others at the time of anaccidelll. WHAT WE
ALSO PAY is amended accordingly.
(b) anyone we protect cngaged in the buslncss or oc.
cupatlon of providing the following serviccs:
1. diagnostic, medical, surgical, dental, x.ray or
nursing scrvice or treatmcnt or the furnishing of
food or bcverages In eonncctlon with the service
or treatment,
2. ambulance, paramcdlc:nl, rcscue squad or other
scrviee or treatment conducive to health,
3. the furnishing or dispensing of drugs or medical,
dental or surgical supplies or appliances.
(c) Injury causcd by any Indemnltce If the Indcmnltee
Is engascd In the buslncss or occupation of thc
following serviecs:
I. diagnostic, medical, surgical, dental, x-ray or
nursing service or treatment or the furnishing of
food or bevcragesln eonncction with the scrvlce
or treatment,
2. the furnishing or dispensing of drugs or medical,
dental or surgical supplies or appliances.
.: : .E~ljIC ~t.~ . 3::: ';"1~~1 "
-S.~I'II'~';'-':~;: :.= ",,;,'1";;.'1':
. .. .... .. ..... - ..
I':' .. ,~,.. : '"
Bankruptcy or Insolvcncy of anyone we protect will not
rellcve us of our obligations.
:' ....:- ,';''2'... -: .. ~....~;:'. ....
No pcrson or organization has a right undcr this policy:
.23-
(a) to join us us a party or othcrwise bring us Into a sull
asking for damagcs from anyone we protecl; or
(b) to sur. us unless all the tcrms of this policy havc been
fully complied with,
A person or organization may sue us to rccovcr on an agrccd
selllemenl or on a final JUdgmcnt against anyone we pro-
leel obtained after an actual trial; but we will not be lIablc
for damagcs thaI are not payable undcr the tcrms of this
policy or Ihat arc In exccss of the applicable limit of protcc.
don. An allreed selllcment means a scnlemcnt and relcasc
of liability signed by us, anyone we protect nnd thc claimant
or the claimant's Icgal represcntadve.
Vlralnla Only;
Any person, organization or legal representative thcrcofwho
hll5 sceurcd a Judgment allainst anyone we protect is thcn
cntitlcd to bring acdon against us to recover damalles up
to Ihe amount of insurance available undcr this policy.
d!: ~"4 ~..:II~'.-:. ~.:.::.::;
The injurcd person will submit to examinations by doctors
selected b>' us, as often as rcasonably requircd. We will pa>'
eithcr the injurcd person or thc provider of the services. Pay.
ment is not an admission of liability.
... _.
..: .. .. ,- '-';
:(
We will pal' those sums not covered by other valid and col.
lcetlblc Insurance, up to the applicable limits of this pollc)'.
When this Insurance and othcr valid and collcctible insurance
apply to thc loss on the samc basis, our obligations are us
follows:
(a) Primary Insurance
This insurance is primary exccpt when pm (bl bclow
applies. When this insurance and thc othcr insurance
are both primary, we will follow the method describ.
cd in pan (c) bclow.
(b) Excess Insurance
This insurance 15 excess over any othcr insurance,
whethcr primary, exccss, contingent or on any O(hcr
basis:
I. that is Fire, Extendcd Covcrage, Builder's Risk,
Installation Risk or similar coverage for your
work;
2, thaI is Fire Insurance for premises rcnted to you;
or
3. if the 1055 ariscs from thc maintcnance or use of
aircraft. automobiles or watcrcraftto thc extcnt
that it Is not subject to Exclusion A, (2) of your
policy.
When this Insurance is cxcess, we will have no duty
undcr Coverages 0, E, or F to dcfend any claim or
sullthat any othcl' insurer hus a duty to dcfend. If
no other Insurer defends you, we will dcfcnd you,
but we will be entitlcd to the rights to recovcr of
anyone we prutect against all those othcr insurers.
When this Insurance Is excess over an)' other In.
surance, we will pay only our sharc of the loss, if
any, that execeds thc sum of:
I. thc tOtal amount that all the othcr insur.
would pay for the loss In the abscnce of thi
surancc; and
'" the total of all dcductiblC5 and sclf.ins
amounts under all the othcr Insuranec.
Wc will share the rcmaining loss, if any, with
other insurance that Is not describcd In this E,
Insurance Provision and which was nO( be
spcclflcally to apply in cxcess of the limits of
tcction shown on thc Declarations.
(cl Mcthod of Sharinll
I. If the othcr insurance provides for contribu
by cqual sharcs, we will pay our cqual shar
the loss, Each insurcr wUl pay cqually witr.
othcrs up to its limit of protection or until
loss is paid, whichcver comes first.
2. If thc other Insurancc docs not providc for,
tribution by equai shares, we will pal' the
portion of the loss that the appllcablc 11m:
protcctlon of this pollc)' bears to the total I
of protection of all applicable insurancc.
This insurance appllC5 scparatcll' to anyone we protect.
condition shall not increasc our limit of liability for any
occurrence.
When thcre is an aecidcnt or occurrence, anyone we
tect will:
(a) notif)' us or our AgclI[ in writing us soon us p,
blc, stating
I. your name and polic)' numbcr;
2. thc time, place and circumstances of the acci.
or uccurrence;
3. names and addrcsses of Injured persons
wimesscs.
(b) scnd us any papcrs that relnte to the acciden
occurrence.
(c) at our requcst:
I. assist in making sctdcment;
2. hclp us cnforce an)' right of rccovery against
party liable to anyone we protect;
3, assist In the conduct of lawsuits;
,
4. ancnd hearings and trials;
S. sccure and give cvidence and obtain the at
dance of wimesses;
6. submit to statemcnlS under oath;
7. authorize us to obtain rccords and 0:
information.
-24.
Anyone wo pruloct will not makc paymcnts, aSSl
obligations or Incur expcnses, othcr than for I
aid, cxcept at thcir 0\\11 cost.
In the evcnt of a fraudulcnt claim, we will not make
payments for thc loss.
"'"\ J I~ '.: T':: \ \ I j\ ~. i-I 1 : ..": .... - ,... ~ \. ........ I ..",. i ''''' \. ..... I'" t.", ~' ...
,liHJ4 .....:,.;_tIlI .__'~l:'.I':,:L"","OIi."J. "~II_III.....I;:
S&:CiIO~1 II!
-,.
. : =.:',:":;'.
Your polley will bc automallcally renewed at the cnd of lhc
policy period, unlcss termlnCled by you or us In accordance
with the steps explained In lhe Canecllatlon Condition.
Each year, we will scnd yoo a Renewal Cerllllcale which
shows lhe premium due for lhe next policy pcrlod.
This 15 a service lhat we provide for you so that your in.
suranee protection docs not stOp.
Ir you do not wantthc renewal poll C)', you must mail our
Agcnt or us written notice In advance of the ncw polley
period, Ir you do not notify us, your policy remains In ef.
fect. You must pay us thc earned prcmlum due us for this
time.
You may cancclthis policy or any coverage b)' mailing or
delivering to our Agent or us writtcn notice stating at what
future date you want the canccllation to take effcct. We mal'
waive these rcqulrcmcnts b}' confirming the date of cancella.
tion to you in writing.
.
,
We may cancel or rcfusc to renew by mailing you wrlttcn
notice stating the effective date of our action. Our action
will comply with lhe iaws of the state in which your prin.
e1pal orrice 15 located. The cancellation will not take cffcct
until at least 30 days (Mar}'land .45 days, except for non-
payment of prcmium . 30 days) after we scnd it. For Slates
that require a different numbcr of days for notification of
cancellation or non.rencwal, or specify lhe reasons for
cancellation or non.rencwal, an Amendatory Endorscment
15 attached.
We reserve the right 10 CllIlcel for your non-compllance with
our premium payment plans, We do nOt waive our right to
eanccl, even if we have acccpted prior late payments.
. . ;. ::,' e.~ I::; ~
Mailing nOlice to the addrcss shown on thc Declarations will
be surricient proof of notice. The policy period will end on
the dale and time stated in the notice.
.. ., : #~ - . ..
. . ~.
If your policy 15 cancellcd by you or us, we will rcturn the
pro rata unuscd share of your prcmlum. Canccllation will
be effective even if we have not glvcn or offcrcd the return
prcmium.
; ~ '.;!.~- .!:::I- ::
.. '- ..
, ...--..--- .- .. .
" ': ..:.. ~.:...:: .... ...'
This entire policy is void if bcfore or aftcr a loss anyone
we protect has intcntionally conccalcd or misrcprescnlcd any
matcrial fact or circumstancc concerning this insurancc.
You agree to coopcratc with us by:
(a) truth full)' complcting and promptl}' lCturnlng ques.
tlonnalres and audit forms about this Insurance;
(b) permitting and hclping with Inspections and audits;
and
(c) complying with spccirlc rccommcndatlons to
Improve your risk.
This polley conforms to the laws of the Slate in which your
principal orricc is locatcd. If the laws of the Slate change,
this policy will compl)' with thcse changes.
Your poiic}' may bc changcd by asking us. Your rcquest must
contain enough information to idcntlfy you. Asking our
Agent is thc samc as asking us. If we agree \\;th your requcsl,
we will thcn issue an Amended Declarations.
We will give you thc bcncfit of any change in covcrage made
by us, if it do<'S not rcquire additional prcmium. This change
will bc effective as of thc datc we implement the change for
you in your state.
We have the right but are not obligatcd to:
(a) makc inspcctions and survc)'5 at an}' time;
(b) give you rcports on thc conditions we find; and
(c) recommend changcs. .
. .
Any inspcctlons, surveys, reports or rccommendations relate
only to insurability and the prcmiums to be charged. We
do not make safet}. inspcctlons. We do not undertake 10 pro.
vide for the health or safcty of workers or the public, We
do nol warrant that your property or opcratlons are safe,
hcahhful or in compliancc with any law, regulation, code
or standard. Inspections, surve}'s, reports or recommenda.
tlons are for our bcncfit only.
This condition also applies to any rating, advisory, rate scr.
vice or similar organization which makes insurance Inspec-
lions, surveys, reportS or recommendations.
We may examine and audit y,our books and records alany
time during or within three ycars after the policy period,
as thcy rciatc to this insurance.
.. " -. '-
After we make paymcnt under this polie}', we will have the
rlghl to recover from anyone elsc hcld rcsponsible. This right
will not apply undcr Section I if you have waived it in writing
prior to 1055. Anyone we prolect is rcqulrcd to transfer this
right to us, and do nOlhing to harm this right. Anyonc
recciving paymcnt from us and from somcone clsc for the
same loss will rcimbursc us up to our pa}1ncnt.
.25-
.J", .:..::...~. ...;':.::=7~.\.:.:
By acccptlnllthls policy, you agree thai the statcmcnts on
the Declarations are accurate and complete and are bascd
on Ihe fac:s you have glvcn us, This policy is issucd In
reliance on these facts.
; :1) ,:~i.: ~'_.~
At our option, this insurance will Om protect you, and then
others we protect,
'::: -.'1,;= :;: '\i::!:-',: '.
If this pollc)' replaces another policy ending at noon on thc
date of this policy, we will protcct you as of that time.
~~ ~I"':"; ':,\t~~ !.~! ': "'!. ~..\.\l '::: ::.::" "".\ . ~:
.:O~I:r:":c,\j.s
The following conditions apply only to policies Issued by
Erie Insurance Exchange.
!. :';:. '. -'.' 1
Eric Indemnity Company may kcep up to 2501. of the written
premium or assumed by Eric Insurance Exchange as com.
pensatlon for:
(a) becoming and acting as Attorncy.in.Fact,
(b) managing the buslncss and affairs of Eric Insurancc
Exchange, ies afOJiatcs and subsidiaries, and
(c) pa)ing gencral administrative expcnses, inclUding
sales commissions, salaries, and other cmploymcnt
cases, the cost of supplies, and other administrativc
costs.
The rest of the premium will be placed on the books of the
Erie Insurance Exchange. We will deposit or Invest this
amount as permitted by law. This amount will be us cd 10
pay losses, adjustment expenses, legal expenses: court coses,
taxes, assessmenes, Iiccnses, fees, and othcr governmental
Ones and charges, establishment of rescrves and surplus, and
reinsurance, and may bc uscd for dividends and othcr
poscs Eric Indemnity Company decides arc to thc a.
lagc of thc Subscribers.
. ',.: :~~I-:~IGc~l- .:.:,::~:,,'-'.'
You will not be assessed for the losses of Subscribc
: : :: -: .~'.:r;A:'~ ~::.::\! :::'f '7
In return for your timely premium payment and your
Ing a power of attorney to Eric Indemnity Compan:
agrce to provide the coveralles you have chosen.
choices are shown on the Declarations, which arc p'
this pollCI'.
Your sillning thc power of altomey permits Eric Indcl
Company to represent you and to arrange reciproc:
surance contracts bctween you and the other Subscr,
Your responsibility as a Subscriber Is dctermlncd b:
policy alone. You cannot be held responsible for the li
II' of the other Subscribers.
This agrcement is made In reliancc on the facts you
gl\'cn us, and Is subjcct to all terms of this policy.
::.: ;"~'". !:':.~ .:!';.:'..~:1:~ ::\i?:,;'
. . '-'. .
. .:1.. '.
The following condition applies only to policies Issu
Erie Insurance Company.
;. ~ ~ ~.:..,I ::'1 '7"
In return for your timely premium payment, we agr
provide the coverages you have chosen, Your choicc
shown on the Dec/arlll/ons, which arc part of this PI
This agreement is made in reliance on the facts you
givcn us, and is subjcct to all terms of this policy.
- .,
'\
.
THIS POLICY HAS BEEN SIGNED ON OUR BEHALF AT ERIE, PENNSYLVANIA BY OUR CHAIRMAN.
SECRETARY. IF REQUIRED BY LAW, IT HAS BEEN COUNTERSIGNED ON THE DECLARATIONS BY
AUTHORIZED AGENT,
fR. LIJ)~-
SECRETARY
~tr
CHAIRMAN
II
~ ERIE INSURANCE GROUP
~ Home Oll,eo ' ICO Ene Ir.sulance Place. Ene. "'nnsylvania 16530
ERIE.
ULS (Ed. 1/93)
\
.26-
. OP.125 EIQ.J1UfUIV.....J
" 'DECLARATIONS
INSURED COpy
I ERIE
"'" INSURANCE
~ GROUP
~I 100 E,.o In' PI NEW DECLARATIONS
,.~ ErIC PA. 16530
: ERIE
.
ERIE INSURANCE EXCHANGE
ANCEULTRASURE FOR LANDLORDS POLICY
SHINER INSUR AGI:NCY
1001 S, Market Stret
Mechanlclburg. PA 17066
(7171766.1200
ITEM 2, POLICY PERIOD " '., POLICY NUMBER
93
, ' ,AGENT
1.1.7507 RONALD L SHINER
'ITEM 1. NAMED INSURED AND ADDRESS
WILLIAM GOET:/:
326 SlOTH ST
LEMOYNE PI. 170'3-1798
POLICY PERIOD BEGINS AND ENDS AT 12:01 A.M. STANDARD TIME AT THE LOCATION
OF THE INSURED PROPERTY.
THE INSURANCE APPLIES TO THOSE PREMISES DESCRIBED BELOW. THIS IS SUBJECT
TO ALL APPLICABLE TERMS OF THE POLICY AND ATTACHED FORMS AND ENDORSEMENTS,
LOCATION OF PREMISES OCCUPANCY
LOC 1-UNIT 1- 6599 CARLISLE PIKE, MECHANICSBURG,
CUMBERLAND CO, PI. 17055. Y/C 1940
1 FAMILY
FRAME DWELLING
INTEREST OF NAMED INSURED IN SUCH PREMISES- OWNER
DEDUCTIBLE (SECTION I ONLY)$ 200. NAMED PERILS COVERAGE
SECTION I-PROPERTY PROTECTION
COVERAGES LOC UNIT AMOUMT O~ INSURANCE PREMIUMS
, .
-------------------------------------------------------------------------------
1
$ 75,000
$
$
$
$ 141.00
$
$
$
1
A. DWELLING
B. BUSINESS PERS PROPERTY
$
$
$
$
$
$
$
$
-------------------------------------------------------------------------------
C. RENTAL INCOME PROTECTION
ACTUAL LOSS SUSTAINED NOT TO
EXCEED 12 CONSECUTIVE MONTHS
INCLUDED
-----------------------------------------------------------~-------------------
APPLICABLE FORMS - ULLR* 05/88, GU15* 12/85, GU18* 01/88. GU44* 03/93.
drR.
" f
...... ,
I
PlAINTIfF'S
EXHIBIT
.iJ
05/03/93
. ~.II~ 1!1Q.'lnRlV tJt2
''':'.\iODECLARATlONS' !:;'/il
INSURED' COpy.,
I' ERIE
~ INSURANCE
~ GROUP
.......~""III 'DOE".'"' p, NEW DECLARATIONS
~ Erie PA 16S30
ERIE.
ERIE INSURANCE EXCHANGE
ULTRASURE FOR LANDLORDS POLICY
, ' AGENT
, " ,': "," ITEM 2. POLICY PERIOD".,t,''':r.'POUCY NUMBER
AA7507 RONALD L SHINER 04 14
-'. " ITEM 1; NAMED INSURED AND ADDRESS . ,..~,.".:;t',. i
WILLIAM GOETZ
326 SlOTH ST
LEMOYNE PA 17043-1798
------------------------------------------------------------------------------
COVERAGES
LIMITS OF PROTECTION
PREMIUMS
------------------------------------------------------------------------------
D. PERSONAL INJURY LIABILITY ---
E. PROPERTY DAMAGE LIABILITY
$ 500,000 EACH OCCURRENCE
$ 1,000,000 POLICY AGGREGATE
***
7.00
I F. MEDICAL PAYMENTS
------------------------------------------------------------------------------
F. MEDICAL PAYMENTS
$
5,000 EACH PERSON
*** INCLUDED
------------------------------------------------------------------------------
TOTAL PREMIUM-SECTION I , 11- - - - $ 148.00
OPTIONAL COVERAGES
~.. .
_. '
,
,
PJT
TOTAL ANNUAL PREMIUM- - -
LESS PAYMENT- - ~ -
BALANCE DUE - - - - - -
$ 148.00
- $ 0.00
- $ 148.00
05/03/93
ERIE INSURANCE GROUP Is proud to presenl this new ULTRASURE PACKAGE POLICY FOR LAND-
LORDS. This Importsnt contrsct between you snd the ERIE Is written In plsln, simple terms 10 Ihal
It csn be easily understood. We urge you to read It.
Your polley conlalns XTRA PROTECTION FEATURES developed by the ERIe-. Wherever
sn "X" appeara In the msrgln of this polley, you receive XTRA PROTECTION, either aa addlllonal
coverage or aa a coverage that la not In moat landlorda pollcl...
[Xl
AGREEMENT
We promise, upon payment of the premium and com.
pUance with the provisions of this poUcy and Its en.
dorsements, to:
III cover you for the poUey period shown on the Decla.
rations, Coverage will begin at 12:01 a.m" Standard
Time, at the location of the Insured property and
will end at the same time on the expiration date of
the poUcy.
(21 protect you up to the amounts specified In the
poUcy.
(3) pay you to the extent of the replacement cost of your
property prior to loss, without any Increased costs
necessitated by ordinances regulating construction
or repair, This amount wlll not exceed the cost of
repair or replacement of your damaged property
with materials of Uke kind and quality within a
reaaonable time after loss.
You may not transfer this poUcy without our written
consent.
This poUcy is made and accepted subject to these and
the foUowlng provisions, including those which may be
added by endorsement.
DEFINITIONS
Throughout your poUey and lte endorsement forms, the
following worda have a special meaning in your poUcy
when they appear in bold type.
. "AIrcraft" means any machine or device capable of
atmospheric flight except model airplanes.
. "Anyone we proteet" and "Insured" when used In
Section II means:
(1) you;
(2) your spouse with respect to the conduct of your bus.
iness, if you are doing business aa an individual;
X 131 all partners, members, and their spouses, If doing
business aa a partnership or joint venture, but only
while acting within the scope of their duties:
(4) executive officers, trustees or directors If doing bus.
iness aa a corporation, aasociation or other entity,
but only while acting within tho scope of their
duties. Stockholders are also Insureds, but only
with respect to their Uablllty aa stockholders;
X (51 your employees while in the course of their employ.
ment. Employees are not Insureds for:
la) personal injury to you or to a co-employee while
in the course of their employment; or
tbl personal injury arising out of their rendering of
or failure to render professional health care
servicesi
(6) your real estate manager: and
(71 any person or organization having proper temporary
custody of the Insured property if you die, but only:
la) with rospect to Uablllty arising out of the mo.ln.
tenance or use of the insured property; and
(bl until a legal representetlve haa been appointed;
(8) your legal representative if you die, but only while
performing duties aa your representative;
(9) any organization you acquire or form, other than
a partnership or joint venture, and over which you
maintain ownership or majority interest. ThIs in.
surance does not apply to:
lal the new organization If It Is also an Insured un.
der other similar insurance:
(b) the organization 90 days after the date the or-
ganization Is acquired or formed by you; and
Icl personal injury or property damage under Per-
sonal Injury Liability (Coverage 01 and
Property Damage Liability (Coverage EI which
occurred before you acquired or formed the or.
ganlzation;
(101 any person operating upon a pubUc highway, with
your permission, mobile equipment that is
registered in your name under a motor vehicle
registration law. Anyone'we protect Includes any
person or organization responsible for the opera.
tion of mobile equipment, but only if loss Is not
recoverable under any othor kind of insurance.
Anyone we protect does not include any person or
organization with respect to:
(al personal injury to a co-employee of the person
operating the mobile equipment: or
Ibl property damage to property owned by. rent.
ed to, in the charge of or occupied by you or the
employer of any person who Is an Insured under
this part (10).
This Insurance does not apply to any partnership
or joint venture not shown on the Declaration..
. "Automobile" means a land motor vehicle, traller or
semi-traller designed for travel on public roads (includ-
Ing any attached machinery or equipment), but does not
Include mobile equIpment.
. "BodIly lajury" means physical harm. sickness or db.
ease sustained by a person, Bodily Injury also Includes
care and loss of services and death at any time result-
Ing Crom bodily Injury,
. "Burglary" means the taking of bu.lness personal
property (as described la Coverage BI from inside the
premises by a person unIawCully entering or u1tlng the
premises as evidenced by visible marks of forcible en.
try or exit. It Includes loas to the building and lte equip-
ment resulting from burglary or attempted burglary.
. "Business personal property" meana personal
property pertaining to the realdence premlae. or used
for the service of the residence premise..
. "DeclaratIoaa", "Amended DeclaratIoaa", "Revised
Declarations" and "Renewal Certificate" means the
form which shows your coverages, Umlte of protection,
premium charges and other Information. This form Is
part of your policy,
. "Extra expense" means the necessary expenses In.
curred by you during the laterruptIon of bu.lae.. that
would not have been lacurred If there had been no direct
los. to covered property caused by an Insured peril.
. "Insured contract" means:
(11 a lease of premises;
(21 a aidetrack agreement;
(31 an easement or license agreement in connection with
vehicle or pedestrian private railroad crossings at
grade;
(4) any other easement agreement, except In connection
with construction or demolition operations on or wi.
thin 50 feet of a railroad;
(51 an agreement to indemnify a municipality which is
required by municipal ordinance, This does not ap-
ply to work performed for the municipality;
(6) an elevator maintenance agreement; or
(7) that part of any contract or agreement relating to
the conduct of your business under which you as.
sume the tort liability of another to pay damages
because of peraonallaJury or property damage to
a third person or organization, If the contract or
agreement Is made prior to the per.onallnJury or
property damage, Tort liability means a liability
that would be imposed by law in the absence of any
contract or agreement.
· "Insured premises" means
(1) the residence premlaea;
(21 any othor one, two, three or four family dwelling you
acquire ownership or control of during the policy
period, if you notify ua of your intention to insure
it under this policy within 30 days of acquisition:
(31 the ways Immediately adjoining on land;
(41 dwellings previously owned by you If possession has
been given to others.
. "Interruption of buslne.s" means the period of time
thot;
(1) begins with tho date of direct 10.. to covered
property caused by an Insured perU; and
(2) ends on the date when the covered property .hould
be repaired, rebuilt or replaced with reasonable
speed and similar quality.
. "Loss" means direct and accidentelloss of or damage
to Insured property.
. "Mobile equipment" means any of the following
types of land vehicles (including any attached
machinery or equipment):
(11 bulldozers, farm machinery, forklifts and other ve-
hicles designed for use principally off public roads:
(2) vehicles maintained for use solely on or next to
premises you own or rent;
(31 vehicles that travel on crawler treads;
(4) vehicles, whether self.propelled or not, maintained
primarily to provide mobility to permanently
mounted:
(a) power cranes, shovels, loaders, dlggers or drills:
or
(b) -road construction or resurfacing equipment such
as graders, scrapers or rollers;
(5) vehicles not described In (11, (21, (3) or (4) above that
are not self.propelled and are maintained primarily
to provide mobility to permanently attached equip-
ment of the following types:
(01 air compressors, pumps and gentlrators,lnclud.
ing spraying, welding, building cleaning, ge-
ophysical exploration, lighting and well servicing
equipment; or
(b) cherry pickers and similar devices used to raise
or lower workers;
(61 vehicles not described in (1), (21, (3) or (4) above main.
talned primarily for purposes otber than the trans.
portation of persone or cargo. However,
self.propelled vehicles with the following types of
permanently attached equipment are not mobile
equipment but are considered automobile.:
(0) equipment designed primarily for:
1. snow removal; ,
2. road maintenance, but not construction or
resurfacing:
3. street cleaning:
(bl cherry pickers and similar devices mounted on
an automobile or truck chassis and used to raise
or lower workers; and
(c) air compressors, pumps and generators,lnclud.
Ing sproying, welding, buUdlng cleaning, ge-
ophysicalexploration, lighting and well servicing
equipment.
-4-
.-.-......-........
· "Money" means:
II) currency, colas aad baak notes Ia current use aad
havlag a fsce value; aad
121 travelers checks, register checks, credit card slips
aad money orders held for sale.
· "OcCUlT8nce" means aa accldent,lacludlag continu-
ous or repeated exposure to the same general harmful
conditions.
· "Personallajury" meaas Iajury arislag out of:
(11 bodily Iajury;
121 libel, slaader, defamation of character;
(3) false arrest, wrongful detention or imprisonment,
malicious prosecution, racial or religious discrimi.
nation, wroagfu1 entry or evictlon,lavaslon of prlva.
cy, or humiliation caused by aay of these,
· "Pollutante" means aay solid,liquld, gaseous or ther.
mallrritaat or contamlnaat, Iaciudlag smoke, vapor,
soot, fumes, acids, alkalis, chemlca1a aad waste, Waste
Includes materials to be recycled, reconditioned or
reclaimed.
· "Property damage" meaas:
III physical Iajury to or destruction of taaglble
property Iacludlag loss of Its use, or
(2) loss of use of tangible property which Is not physl.
cally Iajured or destroyed.
· uRentallDcome" means
(l) the rents from the teaaat occupaacy of the property
described on the Declaratloas;
121 all exper.ses for which the tenaat is legally respon'
sible aad for which you would otherwise bo
responsible;
(3) incidentallacome received from coln-operated laun.
dries or other facilitlos on the residence premises.
. "Realdence premises" meaas the one, two, three or
four family dwelling,lacludlag detached structures aad
land, which Is described on the Declaratioas,
.. . . "Safe" moans a steel receptacle which has a door(s)
. that is no less thaa 1/2" thick, walls or body that are
no less than 1/4" thick aad is equlpped with at least one
key or comblaation lock.
. "Securities" meaas negotiable aad non.negotiable Ia.
struments or contracts representlag either money or
other property aad Iacludes:
(l) tokens, tickets, revenue aad other stamps (whether
represented by actual stamps or unused value Ia a
meter) in current use; and
(2) evidences of debt Issued in cOMectlon with credit
or charge cards not Issued by you;
but does not include money.
. "Suit" means a civil proceeding Ia which damages are
alleged because of personal Injury or property damage
to which this insuraace applies, Suit Iacludes aa arbltra.
tion proceeding alleging such damages to which you
must submit or submit with our consent.
. "Vault" meaas a steel or concrete compartment
which has a steel door(s) that is no less than 11/2" thick;
walls that are no less than 114" thick, U steel, or 9" thick,
if reinforced concrete; aad the door is equlpped with at
least one combination lock. The word "walls"lacludes
the roof and floor of the vault.
ADDITIONAL ERIE INSURANCE EXCHANGE
DEFINITIONS
I
,
The following words have this special meaning Ia poli.
cies Issued by Erie Insurance Exchange when they ap-
pear in bold type.
. "Anyone we protect" aad "Insured" when used Ia
Sections I aad III meaas the Subscriber aad aayother
person, fU'tD or organization named on the Declarations
UDder Named Insured,
. "Subscriber" means the person who signed, or the
partnership, fU'tD or corporation that authorized the
signing of, the application for this policy.
. "We", "US" and "our" means the Subscribers at Erie
Insurance Exchange as represented by their common
Attorney.in.Fact. Erie Indemnity Compaay.
. "You", "your" and IInamed Insured" means the Sub-
scriber aad others named on the Declarations under
.' !'lamed Insured.
ADDITIONAL ERIE INSURANCE COMPANY
DEFINITIONS
The following words have this speclal meaning Ia poli-
cies issued by the Erie Insurance Company when they
appear Ia bold type.
. "Anyone we protect" aad "Ioeured" when used Ia
Sections I aad III meaas aay poraon, firm or organlza.
tion named on the Declarations under Named Insured.
. "We", "us" and "our" means Erie Insurance
Company.
. "Y ou", "your" and "named Insured" means the per-
sons named on the DeclaratlODs UDder Named Insured.
WHEN AND WHERE THIS POLICY APPLIES
WHEN
This policy applies to losses that occur during the poli-
cy period. The policy period is shown on the Declara.
tions, Renewal Certlncate. Amended DeclaratloDs.
Revised Declarations or endorsement. An Amended
Declarations or ondoraement tells you that the policy
has been changed. A Renewal CertIllcate tells you that
the policy is boing renewed for aaother policy period.
WHERE
Dwelling Protection. Section I . This policy applies to
loss of property at the locatlons(sl specified on the
Declarations, except as provided Ia Extensions of
Coverage 8.171 & 8.(10).
Liability Protection. Section II . This policy applies
within the United States of America, its territories or
possessions, or Canade.
ThJs insurance does not apply to any partnershJp
or joint venture not shown on the Deelaratlons,
. "Automobile" means a land motor vehJcle, trailer or
semi-traller designed for travel on public roads (lnclud.
Ing any attached machinery or equipment). but does not
Include mobile equipment,
. "BodUy Injury" means physical harm, sickness or dIs.
ease sustained by a person. BodUy injury also Includes
care and loss of services and death at any time result.
Ing Crom bodily Injury,
· "Burglary" means the taking of business personal
property (as described In Coverage B) from inside the
premises by a person unlawfully entaring or exiting the
premises as evidenced by visible marks of forcible en.
try or exit. It Includes loss to the building and its equip-
ment resulting from burglary or attempted burglary.
. "Business personal property" means personal
property pertaining to the residence premises or used
for the service of the resIdence premises.
. "Declarations", "Amended Declarations", "Revised
Declarations" and "Renewal Certificate" means the
form whJch shows your coverages, limits of protection,
premium charges and other information, ThJs form is
part of your policy.
· "Eztra upenae" means the necessary expenses In.
curred by you during the interruption of business that
would not have been Incurred U there had been no direct
lose to covered property caused by an Insured peril.
. "Insured contract" means:
(11 a lease of premises:
(2) a sidetrack agreement:
,
(3) an easement or license agreement In connection with
vehJcle or pedestrian private railroad crossings at
grade:
(4) any other easement agreement, ucept In connection
'. with construction or demolition operations on or wi.
thin 50 feet of a railroad:
(5) an agreement to IndeD1Dlfy a munlclpallty whJch is
required by muDlcipal ordinance. ThJs does not ap-
ply to work performed for the muDlclpallty;
(6) an elevator maintenance agreement: or
(7) that part of any contract or agreement relating to
the conduct of your business under whJch you as.
sume the tort liability of another to pay damages
because of personal Injury or property damege to
a third person or organization, if the contract or
agreement Is made prior to the peraonallnjury or
property damage. Tort liability means a liability
that would be Imposed by law In the absence of any
contract or agreement.
. "Insured premises" means
(1) the residence premlsee:
(2) any other one, two, three or four family dwelling you
acquire ownershJp or control of during the policy
period, if you notify us of your intention to insure
It under thJs policy within 30 daye of acquisition:
(3) the ways immediately adjoining on land;
(4) dwellinge previously owned by you U possession has
boen given to others.
. "Interruption or bu.lne.... means the period of time
that:
(1) begins with the date of direct loe. to covered
property caused by an Insured peril: and
(2) ends on the date when the covered property should
be repaired. rebuilt or replaced with reasonable
speed and slml1ar quality.
. "Loss" means direct and accldontalloss of or damage
to Insured property.
. "Mobile equipment" means any of the fOllowing
types of land vehicles (Including any attached
machinery or equipment):
UI bulldozers, farm machinery, forkUlta and other ve-
hicles designed for use prlnclpally off public roads:
(2) vehJcles maintained for use solely on or next to
premises you own or ront:
(3) vehJcles that travel on crawler treads:
(4) vehJcles, whether self.propelled or not, maintained
priularlly to provide mobility to permanently
mo'uoted:
(aI, power cranes, shovels, loaders, diggers or drills:
\or.
(b) road construction or resurfacing equipment such
as graders, scrapers or rollers:
(5) vehJcles not described In (1), (2), (3) or (4) above that
are not self.propelled and are maintained primarily
to provide mobility to permanently attached equip-
ment of the following types:
(a) air compressors, pumps and generators.lnclud.
Ing spraying, welding, building cleaolng, ge-
ophysical ~Ioretion, lighting and well servicing
equipment: or
(b) cherry pickers and slmllar devices used to raise
or lower workers:
(6) vehJcles not described In (1), (21, (3) or (4) above main.
talned primarily for purposes other than the trans-
portation of persons or cargo. However,
self.propelled vehJcles with the following types of
permanently attached equipment are not mobile
equipment but are considered automobiles:
,
(a) equipment designed primarily for:
1. snow removal;
2. road maintenance, but not construction or
resurfacing;
3. street c1oaolng;
(b) cherry pickers and slmllar devices mounted on
an automobile or truck chassis and used to raise
or lower workers: and
(c) air compressors, pumps and generators, includ-
Ing spraying, welding, building cleaning, ge-
ophysical exploration, lighting and well servicing
equipment.
-, '
DWELLING PROTECTION. SECTION I
"
,
Dwelllng(s) . Coversge A . meaning bundings described
on the Declaretlons used solely as privato rental resl.
dences and anything permanently attached. It also In.
cludes:
(1) unattached outbulldinp doscribed on the Declara.
tlons Including garaps, storage areas and tool
sheds. Bulldings used In connection with manufac.
turing, servicing or fanning operations ara not In.
cluded,
(2) bullding equlpment and fixtures servicing the bulld.
Ing and other structures at the realdence premises,
(3) peraonal property you have for the service and main.
tonance of the bulldinga Including, but not llmIted
to, the foUowlng:
(al fire extinguishing equlpm6nt,
(b) outdoor furniture,
(c) floor coverings,
(dl appUancea used for refrigerating, ventnatlng,
cooking, dishwashlng or laundering, and
(el flag poles and outdoor Ughts.
(41 outdoor antennas. and
(5) glass. The glass mUst be part of the bullding or In
the bunding described on the Declarations.
This coverage does not apply to:
(1) fences and walks, except as provided In Extension
of Coverage .A.(1);
(2) outdoor swimming pools and equlpment pertaining
thereto, except as provided in Extension of Cover.
age .A.(t);
(31 wharf property;
(4) retalnlng walla, bridges, roadways, patios or other
paved surfaces;
(5) trees, shrubs, lawns and plants, except as provided
In Extension of Coverage-A.(21:
(6) exterior signs. Ughts and clocks, except as provid.
ed in Extension of Coverage .B.(4);
(71 underground pipes, flues or dralns;
(8) land (including land on whlch covered property is
locatedl or water; and
(9) property speclficaUy Insured In whole or in part by
thls or any other Insurance.
Automatic Adjustment 01 Coverege Amounts
Thls policy provides you with a guard against the ef.
fect of Inflation on construction costs for Dwellings
(Coverage AI. We will keep track of costs and at the next
policy period we will adjust tho amount of your bund.
ing coverage U necessary. Your premium will be adjust.
ed at each poUey period to reflect any change in the
amount of Insurance.
During the poUcy poriod, if thore is an increase in con.
struction costs and a loss occurs, we will reflect the In.
crease in the amount of Insurance for Dwellings
(Covorage A) before making payment. There will be no
charge for thls additional coverage,
If the amount of insurance shown on the Declarations
for Dwellings (Coverage A) fa Inadequate, the.. adjust.
ments may not be sufficient to provide run recovery
should a loss occur, If you Increase the value of a buUd.
Ing by $5,000 or more, you mUst tell ua in order for your
limit for Dwollings (Coverege AI to remain adequato.
Buslnass Personal Property. Coversge B . covers busl.
nees personal property only while on the residence
premlaea or while it is temporarily removed for repairs.
Thls coverage does not apply to:
(1) vehlcles whlch because of their use are required by
law to be Ucensed for road or air use; watercraft
and accessories while afloat:
(2) motorcycles, recreational motor vehlcles and
traUers:
(3) exterior signs, Ughte and clocks, except as provid.
ed in Extension of Coverage-B.(41:
(41 money and securlt/ea, except as provided In Exten.
sion of Coverage-B,(7);
(51 household and personal articles;
(6) trees, shrubs, lawns and plante, except as provid.
ed in Extension of Coverage-A,(2);
(7) growing crops while outeide of bulldings;
(81 animals;
(9) contraband, or property In the course of illegal
transportation or trade;
(10) extra expense incurred In the reproduction of your
valuable papers and records, except as provided In
Extension of Coverage-B.(lll; and
(111 property speclficaUy insured In whole or in part by
thls or any other Insurance.
Rentellncome Prolectlon . Coverege C . meaning loss
of rental income resulting directly from interrupt/on of
business caused by damage to bulldlngs or buainess pe....
sonal property while on the realdence premlaea from an
Insured peril.
We will pay the actual business loss sustained by you
and the expenses necessarily incurred to resume nor-
mal business operations. The actual business loss we
will pay shaU not exceed tha reduction In rents, less
charges and expensos whlch do not necessarily continue
during the period when your tenants cannot Inhabit the
premises.
The loss of rental Income will be based on the rental In.
come before the date of a covored loss and the prova.
ble rental Income had no loss occurred.
We will pay up to $100 a day for seven days aftor your
business Is suspended to cover loss of rentellncome
while you are determining your actual business loss. The
amount pald will be subtracted from your actual loss
of rental Income.
.6.
_......~. .-~ .." . ........ .............
We will pay the actual business lollS lor only such length
01 time as would be required to resumo normal business
operations. We will UmIt the time period to the shorter
of the following periods:
(I) the time period required to rebuild, repair or replace
such part of the building or business personal
property as has been damaged or destroyed as a
direct result of an Insured perU: or
121 twelve (12) consecutive months from the date Ofl088.
Payment of loss Is not UmIted by the end of the poUcy
period. Loss may Include:
(I) loss caused by temperature change as a result of
damage to the premises by an Insured perU lexclud.
Ing vandalism and malicious mischief, riot and civil
commotion):
121 loss for a maximum of two consecutive weeks whon
Insured premises are closed by order of civil authorl.
ty as a result of direct physical loss of or damage
to property, other than at the Ineur~d premises,
caused by an Insured perU; and
(31 extra expense. We will pay any extra expense to:
Ie) avoid or minimize the Interruption of business
and to continue your business activities at the
Insured premises;
(bl minimize the interruption of business If you can.
not continue your business activities;
lei repair or replace any property or research,
replace or restore the lost Information on
damaged valuable papers and records to the ex.
tent It reduces the amount of loss that otherwise
would have been payable under loss of rental
Income.
Yo. are required to resume normal business operations
as promptly as possible and shall use all available me-
ans to eUmlnate any unnecessary delay.
. PERILS INSURED AGAINST
"
"
'DWELLINGS. COVERAGE A
BUSINESS PERSONAL PROPERTY. COVERAGE B
RENTAL INCOME PROTECTION. COVERAGE C
This poUcy Insures against losa caused by the follow.
Ing perUs:
(I) Fire
(21 Ughtnlng
131 Windstorm or Hail, not including loss
(a) caused by frost, cold weather, ice, snow or sleet.
(bl to business personal property unless the oxterlor
of the building fust sustains damage to roof or
walls by direct action of wind or hail.
Ic) to anteMas including their lead.1n wiring, masts
or towers.
(41 Explosion, including losa from the explosion of gases
or fuel within the combustion chamber, fiues or pas.
sages of any fired vessel. This peril does not include
loss by explosion of steam boilers, steam pipes,
steam enginos or steam turbines if owned by you,
leased by you or operated under your control.
The following are not explosions:
(al electric arcing:
(b) rupture or bursting
1. of moving parts or machinery caused by cen.
trifugal force or mechanical breakdown,
2. of water pipes,
3. due to expansion or swelling of the contents
of any building or structure, caused by or
resulting from water,
4. or operation of pressure reUef devices.
(51 Riot and Civil Commotion, including loss from pil.
lage and looting. Under Rental Income Protection
(Coverage CI, this peril does not Include loss caused
by temperature change as a result of damage to
the premises by riot and civil commotion.
(61 Veblcles and Aircraft, not including losa to your
property whlle being transported.
(71 Smoke, meaning sudden loss from smoke, other
than smoke from agricultural smudging or Indus.
trial operations,
181 Falllng Objects, not including loss to
lal business personal property In the open; or
Ibl business personal property unless the exterl.
or of the building fust sustains damage to roof
or walls by falllng objects.
(91 Weight of Snow, Ice or Sleet, not including loss to
business personal property In the open,
(10) Vandallsm or Malicious Mischief, meaning losa
resulting from wlIlfu1 and malicious damage to or
destruction of your bulldlngisl and/or buslnesa JlU"
sonal property. We will not cover loss:
(al caused by pilferage, theft, burglary or larceny.
We will pay for loss to the building and its
equipment resulting from burglary or attempt-
ed burglary, subject to part (bl below,
(bl to glass constituting a part of a building, In.
cludlng Its lottering and ornamentation, except
glass building blocks,
(11) Sonle Boom
(121 Sprinkler Leakage, meaning loss caused by leak.
age or discharge of water or other substances from
within an automatic sprinkler system, including
losa caused by collapse of a tank forming a part
of an automatic sprinkler system. This peril also
Includes the cost to repair or replace the automat.
Ic sprinkler system when the damage sustained Is
caused directly by breakage of any of the parts of
the sprinkler system resulting in sprlnklor leakage
or freezing. We will also pay the cost to tear out
and replace any part of the buildlngisl described
on the Oeo1aratloos to repair damage to the auto-
matic sprinkler system that has resulted in sprin.
kler leakage.
"
.
Thls peril does not include 1088 caused by leakage
or discharge from an automatic extinguishing sys.
tem whlch protecte cooking equipment.
There Is no coverage whlle the building at whlch
the loss occurs Is vacant for more than 60 consecu.
tlve days unless you have exercised rellllOnable care
to protect the system against freezing.
(131 FreezIng by Temperature Reduction 01 Plumbing,
Heating or AIr Conditioning Systema or Water
Damage, including loss from the sccidental dls.
charge or leakage of water or steam as the direct
result 01 the breaking or Clacking 01 any part 01
a system or sppllance containing water or steam,
OJtCept an automatic sprlnk1er system. We will alao
pay the cost to tear out and replace any part 01 the
buildlngls) described on the Declarations to repair
damage to the system or appliance from which the
water or steam escapes.
We will not pay lor:
(a) the cost to repair or replace the system or ap-
pliance from whlch the water or steam escapes;
or
(b) loes caused by freezing whlle the described
building Is vacant lor more than 60 consecutive
days unless you have exercised reasonable care
to:
1. maintain heat in the building; or
2. shut off the water supply and drain the sys-
tem or appliance of water.
(141 Burglar;y, not including loes to property damaged
or taken by burglars II the building has been va.
cant or unoccupied for more than 30 consecutive
days immedlataly prior to the loes. A building un'
der construction Is not considered vacant or unoc:-
cupied,
(15) Volcanle Action, meaning direct loss resulting from
the eruption of a volcano caused by:
(a) airborne volcanic blast or airborne shock
waves.
(b) ash, dust or particulate matter, or
(cl lava flow.
All volcanic eruptions that occur within any
168-hour period will constitute a single occurrence.
This does not include the cost to remove ash. dust
or particulate matter that does not cause direct
1088 to the covered property.
(16) Sinkhole CoUapse, meaning loss caused by the 9'.Id.
den slnklng or collapse of land into underground
empty spaces created by the action of water on
limestone or dolomite. This peril does not include:
(a) the cost of filllng sinkholes; or
(b) slnklng or collapse of land into man.made un.
derground cavities,
UMITATIONS ON OUR DUTY TO PAY. SECTION I
What We Do Not Cover. ExclusIons
A. We do not cover under Dwellings (Coverage AI, Bus.
Iness Personal Property (Coverage BI and Rental In.
come Protection (Coverage C) loss caused directly
or indirectly regardloss of any cause or event con.
tributlng concunently or in any sequence to the loss:
(11 (al by earth movement (other than sinkhole col.
lapsel, including but not llmlted to earth.
quake, mine subsidence, landslide, mud flow,
earth sinking, earth rising or shifting, or
earth movement caused by volcanic eruption,
explosion or effusion;
(bl by flood, surface water, waves, tidal water or
tidal wave, overflow of streams or other bod.
les of water, or spray from any of these, all
whether driven by wind or not;
(cl by water or sewage which backs up through
sewers or drains; or
(d) by water below the surface of the ground In.
cludlng that whlch exerte pressure on or
flows, seeps or leaks through sidewalks,
driveways, foundations, walls, basement or
other floors, or through doors, windows or
any other openings in such sidewalks, drive-
ways, foundations. walls, basement or floors:
unless fire, explosion, sprlnk1er leakage, volcan.
Ic action, or building glass breakage caused by
volcanic eruption, explosion or effusion ensues,
and then only for ensuing loss.
This exclusion does not apply to property being
transported.
(2) by war, whether declared or undeclared, dis-
charge of a nuclear weapon (even IIsc:cidentall,
hostile or warlike action In time of peace or war,
insurrection, rebellion, revolution, civil war,
usurped power, including action taken by
governmental authority In defending against
such an occurrence.
(3) by seizure or destruction of covered property by
order of governmental authority, except as
provided in Rental Income ProteCtion (Coverage
C).
We will also cover 1088 caused by acts of destruc-
tion ordered by governmental authority to pre-
vont the spread of a fire.
(41 by nuclear reaction or radiation, or radioactive
contamination unless fire ensues. and then only
for ensuing loss.
(51 by deterioration or depreciation.
(6) by the enforcement of any law or ordinance
regulating the construction, use or repair of any
property or requiring the tearing down of any
property, Including the cost of removing its
debris.
(7) by the failure of power or other utility sorvice
supplied to the insured premises. however
caused, II the failure occurs away from the In.
sured premises. unless a covered loss ensues. and
then only for ensuing loss.
(8) by collapse. We will covor loss from collapse
caused by fire; lightning; windstorm; hail; explo-
sion; smoke; aircraft; vehicles; riot; civil commo-
tion; vandalism or malicious mischief; sonic
boom; breakage of building glass; fa1llng objects;
.8.
weight of snow, ice or sleet; water damage; hid.
den decay; hidden insect or vermin damage;
sprinkler leakage; sinkhole coUapse; volcanic ac.
tion; weight of people or personal property;
weight of rain that coUects on a roof; or use of
defective material or methods in construction,
remodeling or renovation If the coUapse occurs
during the course of the construction, remodel.
ing or renovation,
We will not cover settling, cracking, shrinking,
bulging or expansion,
B. We do not cover under Rental Income Protection
(Coverage Cl:
Ul increase of loss resulting from ordinance or law
regulating construction or repair of buildinge.
(21 consequential damages resulting from the breach
of contractual obUgations.
(3) increase of loss as a result of labor disturbances.
(4) loss due to delay or loss of market.
(6) increase of loss caused by or resulting from the
suspension, lapse or canceUation of any UceDSs.
lease or contract, We will pay for loss of Incoms
during the Interruption of busln_1f the suspen'
slon, lapse or canceUation Is caused by the sus.
pension of your business.
(6) extra expense caused by the suspenalon, lapse,
or cancellation of any license, lease or contract
beyond the Interruption of business.
(7) increase of loss resulting from ordinance or law
regulating the prevention, control, repair,
cleanup or restoration of environmental damage.
(8) income protection specifically insured in whole
or in part by this or any other insurance.
Deductlbles
Dwellings (Coverage AI, Business Personal Property
(Coverage B) and Extensions of Coverage. Section I.
- We will pay the amount of loss to property in anyone
''.occurrence which Is in excess of the deductible amount
shown on the Declarations, unless othorwise stated in
the Extensions of Coverage.
Rental Income Protection (Coverage CI. No deductible
appUes.
Special Loss Payments. Coverage A
The foUowing property Is subject to special treatment
when damaged by an insured peril:
U) Our payment for loss to glass will also Include:
(a) replacement of building glass with safety glaz.
ing materials when made necessary by an or.
dlnance or building code,
(bl replacoment of lettering, ornamentation or bur.
glar alarm foil,
(cl repair or replacement of frames.
(dl installation of temporary coverings, and
(e) removal of obstructions.
(2) Improvements and betterments made by Others.
(a) If you pay for ropair or replacement, we will pay
you the expenses Involved not exceeding the
replacement cost of damaged property,
(b) If repaired or roplaced at the expense of others,
there is no loss payable to you.
Special Loss Payments. Covaraga B
The foUowing property is subject to special treatment
when damaged by an insured peril:
Accounting Books, Records, Tapes and Recording Me-
dia. We will pay you the cost of blank Item (books, film,
tape or other recording medial. Extension of Coverage-
B.U 11 . Valuable Papors and Records provides for
reproduction of these Items,
EXTENSIONS OF COVERAGE. SECTION I
A. We will pay the foUowing loss88 at your option. Pay.
ments under these Extensions are not an addition.
aI amount of insurance and will not increase the
total amount of insurance available for the cover.
age Involved.
(11 Fencea, Walka, Unallached Outbulldlnga. Tennla X
Courta and Inground Swimming Poola- Coverage
A. We will cover loss to fences, walks, unat.
tached outbuildings, tennis courts and Inground
swimming pools caused by fU'8; Ughtaiag; explo-
sion; riot or civil commotion; aircraft; smoke;
fal1lag objects; windstorm; vandalism or mall.
cious mischief; sonic boom; sinkhole coUapse;
volcanic action; or coUapse caused by any of the
perils specified in this paragraph.
Unattached outbuildings Include garages,
storage areas and tool sheds, but do not Include
" those buildings used for dwelling purposes or in
connection with manufacturing, servicing or
farming operations.
We will pay up to 10% of the Dwellings (Cover.
age AI limit but not to exceed $16,000 for any
one loss.
Our payment will be on an actual caah value
basis.
If specific Insurance Is carried on any Item co-
vered by this extension. then this extension does
not apply to that Item.
(2) Trees, Shrubs, Lawns and Planls . Coverege. A X
and B. We will cover Joss to trees, shrubs, lawns
and plants caused by fire; Ughtniag: explosion;
riot or civil commotion; aircraft; smoke; fal1lag
objects; sonic boom; sinkhole coUapse; volcanic
action; or coUapse caused by any of the perils
specified In this paragraph.
If trees, shrubs and plants ara inside buildings,
we will also cover loss caused by windstorm;
hall; weight of snow, Ice or sleet; vandalism or
mallcious mlschlof; or temperature change.
Thero must fll'st be damage from an Insured per.
iI to tho residence premises.
.g.
-'
"
,
We will not be Uable for more than $500 on any
one tree, shrub or plBllt,lncludlag expenses for
removing debris, or $2,000 for anyone loss. We
will not be Uable for more than $2,000 for any
one loss to lawns,
8, Payments under these Extensions of Coverage are
AN ADDITIONAL AMOUNT of Insurance and will
Increase the total amount ollnsuranco avallable for
the coverage Involved.
(11 Debris Removll, We cover the cost of removal
of debris resulting from a covered 1088. Thla does
not apply to any Increase of lose resulting from
ordinances or laws regulating construction or
repair of bulldlags. We will pay up to 5% of the
total Umlte for Coverages A and 8 plus $5,000
for debris removal expense.
This extension does not cover the cost to e.xtract
pollutants from land or water, or to remove, re-
store or replace polluted land or water.
X (2) Demolition Cast. Thla policy covers the cost, not
to exceed $10.000, of demolishing and removing
any undamaged portion of the bulldlag after a
covered loss. The demoUtion must be required
by buUdlag code.
The deductible does not epply to this extension.
X (3) Expenleslor LOIS Adjustment. We will pay up
to $1,000 for e.xpenseslnvolved In the prepara.
tion of loss data. inventories and appraisals,
This does not Include e.xpenses Incurred In us.
Ing a pubUc adjuster.
The deductible does not apply to this extension.
X (4) exterior Signs, Lfghls Ind Clockl. We will pay
up to $5,000 for 1088 to e.xterlor signs. Ughts and
clocks which you own. All exterior signs, Ughts
BIld clocks must be on the residence premises.
We will ~nQ.t pay for loss caused by:
(a) faulty manufacture or Installation;
(bl extremes of temperature;
(cl mechanlcal breakdown;
(d) damage to electrical apparatua cauaed by
electricity other thBll lightning e.xcept for en.
suing fire damage; or
(e) breakage during lnsta11ation, repairing or ells.
mBllt1lng or breakage during transportation
unlesa caused by fire, lightning. collision,
derailment or overturn of vehicle.
X (51 Fire Departmenl Service Charges. We will pay
charges made by a rue department for services
rendered 118 a result of BIllnsured loss.
The deductible does not apply to this extension.
X (61 Fire Extinguisher Recherge. We will pay ex.
penses Incurred to recharge portable fire extln.
gulshers after they are used to fight a fire.
The deductible does not apply to this extension.
(7) Maney end Securities. We will pay for loss
caused by an Insured peril to money or seeuri.
ties up to $1,000 for anyone loss while in or on
the residence premisea or within a bank or sav.
Ings institution.
.10.
We will pay fur mon.y and eecurltl.e while be-
Ing conveyed by enyon. w. prot.ct or by an
authorized employee, up to $1,000 for anyone
1000.
W. will pay for mon.y and IIcurltl.a destruc.
tlon up to $1,000 for anyone loae. Mon.y and
securltlee destruction meana 1088 by destruction
of mon.y and s.curltles within the residence
prewses or while contained within a locked
vault or saf., This does not Include loss caused
by unexplained or mysterious disappearance or
abstraction.
(81 Newly Acquired or Construcled Property.
(a) You may apply up to 25% of the UmIt for
Coverage A or $250,000, whichever Is less.
on:
1. newly acquired bulldlags at other than
the locatlonls) described on the Decla.
ratione;
2. new additions. new buUdlags BIld new
structures when constructed on the resl.
denc. pr.mlses, Includlag materials,
equipment and supplies on or within 100
feet of the residence pr.mlses;
provided there Is no other InsurBllce ap'
pUcable.
(bl You may apply up to 10% of the Umlt for
Coverage B or $100,000, whichever Is less.
on newly acquired busln.ss p.rsonal
property at other thBll the location(sl
described on the Declarations, provided
there Is no other lnaurBllco appUcable.
(cl You may apply up to one month's actual bus.
Iness loss or $100,000, whichever Is less, for
loss of Income on:
1. newly acquired buildings and business
personal property at other than the loca.
tlon!s) described on the Declaratloos; or
2. new additions, new buildings and new
structures when constructed on the
described prewsos, Includlag materials.
equipment and supplies on or within 100
feet of the described prewses, If loss to
the new additions. new bulldlags and new
structures delays the start of your busl.
ness. The Interruption of business will
start on the day your business would
have started if the 1088 had not occurred;
provided there Is no other insurance ap-
plicable.
This extension shall apply for 90 days after
tho acquisition or start of construction,
provided the poUcy remains In force or is
renewed,
You shall report values Involved and pay any
additional prewum.
This oxtension does not apply to property
while In transit.
(91 Pollu18nls Cleen Up snd Removsl. We will cover
the coat to extract poUutaD18 from land or water
on the Insured premlaea If the release, discharge
or dIaperaa1 of poUutaDte Is cauaed by an Insured
perU during the policy period. We will pay up
to 110,000 for aD 100ses throughout the year.
The cost must be reported to us within 180
days after the 1081 or the end of the polley perl.
od, whichever Is the earlier date.
X (101 Property In Danger. Thla policy covers any 1011
to Insured property removed from the Ineured
premises or at e temporary location for up to
30 days because of danger of damage by an In.
sured peril or to repair damage to the Insured
property.
X (11) Valuable Papers and Records. Buslnell Per.
sonel Property (Coverage BI Is extended to
cover the extra upense Incurred In the
reproduction of ;your veluable papers and
records when destroyed by an Insured perllat
the reeldence premlaea.
Thla utenslon includes, but Is not Umlted to,
film, tape, disc, drum, cell and other magnetic
recording or electronic data processing media.
Thla extension Is Umlted to $5,000 for anyone
100s.
The deductible does not apply to this ex.
tension.
CONDITIONS. SECTION I
III ABANDONMENT OF PROPERTY
We need not accept any property abandoned by ;you.
(2) APPRAISAL
If ;you and we fall to agree on the amount of 1081, either
party may make written demand for an appraisaL Each
party will select an appraiser and notify the other of
the appraleer'sldentity within 20 days after the demand
Is received. The appraisers will select a competent and
, Impartiel umpire. If the appraisers are unable to agree
'" upon an umpire within 15 days, ;you or we can ask a
judge of a court of record in the state where the policy
Is islUed to select an umpire.
The appraisers shaD then set the amount of loss. If the
appralsere submit a written report of an agreement to
us, the amount agreed upon shaD be the amount of lose,
If they cannot agree, they will submit their differences
to the umpire. A written awerd by two will determine
the amount of loss.
Each party will pay the sppraiser it chooses, and equaUy
bear expenses of the appraisel. However, If the written
demand for appraisells made by us, we will pay for the
reasonable cost of your appraiser and your share of the
cost of the umpire.
We will not be held to have waived any rights by any
act relating to appraisaL
(31 DIVISIBLE CONTRACT
The 'breach of a policy condition or warranty In one
building or location will have no effect on the coverage
on another where no breach exists.
141 INCREASE IN HAZARD
U aless we agree beforehand, coverage is suspended If
the huard Is substantiaDy increased by any means wi.
thin the control or knowledge of anyone we protect.
(5) LOSS PAYMENT
We will adjust aD lossea with you, We wIlll'ay ;you un.
less some other person is named In the polley or Is Ie-
gaUy entitled to receive payment, We will not pay you
more than ;your flnanclel interest in the covered
property.
Lou will be payable 30 days after we receive ;your proof
of loas and one of the foUowlng has been done:
lal we have reached an agreement with you; or
Ibl there Is an entry of finel judgment; or
leI there Is a filing of an appraisal award on ;your
behalf.
We have the option to:
(al pay the value of the damaged property;
(bl pay the cost to repair or replace the damaged
property;
(cl take aD or part of the damaged property at an
agreed or appraised value; or
Idl repair or replace the damaged property with
material of like kind and quality,
161 LOSS TO A PAIR OR SET
If there Is IOIS to a pair or set, we may:
la) repair or replace any part of the pair or set to
restore It to Ita velue prior to the loas; or
Ib) pay the difference between the actual cash velue
of the property before and after the 1011.
171 MORTGAGEE
Loss shaD be payable to mortgagees named on the
Declarations, to the extent of their Interest and In the
order of precedence.
Our Duties
We will:
(a) protect the mortgagee's interest in an Insured
building. Thla protection will not be invalidat-
ed by any act of neglect of anyone we protect,
any breach of warranty, Increase In hazard,
change of ownership or foreclosure If the mort-
gagee has no knowledge of these conditions.
(bl give the mortgagee 30 days notice before can. X
cellatlon or refusel to renew this policy,
Mortgagle's Duties
The mortgagee will:
la) furnish proof of lOll within 60 days If you fall
to do so.
Ibl pay upon demand any premium due If ;you fall
to do so.
Ie) notify us of any change In ownership or occupan.
cy, or any increase in huard of which the mort.
gagee has knowledge.
(d) give us his or her right of recovery against any
party liable for lOll. This shaU not Impeir the
right of the mortgagee to recover the full amount
of the mortgage debt.
.11.
Ie) after. lOll, permit UI to Istlsfy the mortgage
requlroments, and receive full transfer of the
mortgage and all lecuritlel held as coUateral
to the mortgage debt.
Poliey conditione relating to APPRAISAL, LOSS PAY.
MENT and SUIT AGAINST US apply to the
mortgagee.
Thls mortgagee Interest provlllon Ihall apply to any
trustee or loss payee named on the Declaratlonl.
Il:l) NO BENEFIT TO BAILEE
No bailee shall benefit. directly or lodlrectly, from this
losurance. '
191 OTHER INSURANCE
Other lnaurance Is not permitted. Thls policy I. excess
to any other Inlurancs.
Virginia Only:
Other inaurance may be prohibited or the amount of In.
surance may be UmIted by an endorsement attached to
your policy.
If both thls lnaurance and other Insurance apply to a
loss, we will pay our share. Our share will be the propor'
tlonate amount that thll Insurance bears to the total
amount of aU applicable Inlurance.
(10) PROPERTY OF OTHERS
If we are caUed upon to pay a loss for property of others.
we reserve the right to adjult the losl with the owner.
If we pay the owner, such payments will satisfy your
claims against us for the owner's property.
In case of disagreement, we will conduct the defense on
your behalf at our expense.
,
,
I1.J).PROTECTIVE SAFEGUARDS WARRANTY
You must maintain, so far as Is within your control, any
protective safeguards shown on the Declarations.
Failure to do so will suspend the coverage of this poli.
ey at the affected location. Coverage will not be sus.
pended If you notify us immediately when the system
Is not In operation because of ropairs or maintenance,
and you comply with our requests and directions at that
time.
1121 RECORDS
You must keep proper records so that we can accurate-
ly determine the amount of loss.
(13) RECOVERIES
If elthor you or we recovor any property after settle-
ment, that party must notify the other. Expenses of
recovery will be deducted from the value of the
property. The balance of the proceeds will be divided
according to your and our Interests.
At your option, the recovered property will be rotumed
to you. You must then return to ua the amount we paid
to you for the property. We will pay the expenses of
recovery and the expenses to repair the recovered
property, up to the limit of Insurance,
1141 REPLACEMENT COST COVERAGE
After a covered 10ls to yoW' bulldlng(s) under Cover.
age A or bUllne.. personal property under Coverage B,
our payments will be on a replacement cost basis, In.
stead of an actual cash value basis, thereby eUminat.
log deduction for depreciation. Payment will not exceed
the limits of Insurance shown on the Declarations.
We will not pay replacement cost untU the damaged or
destroyed property Is actually repaired or replaced as
soon as practicable.
We will pay the smaller of the foUowlng:
(a) the cost of replacement on the same premises
with material of like kind and quallty and In.
tended for the same use, or
(bl the amount actuaUy spent In repairing or
replacing the property.
We will not psy for lOBS on a replacement cost basis:
(a) due to any ordinance or law regulating the con.
struction or repair of bulldlngs;
(b) to property of others;
(cl to manuscripts;
(d) to paintings, etchings, pictures, tapestries,
statuary, marbles, bronzes, antique fumlture.
rare books, antique sUver, porcelains, rare
glassware and bric.a.brac, or other articles of
art, rarity or antiquity;
(e) to obsolete property.
You may choose to accept payment on an actual cash
value basis. If you do choose an actual cash value ba.
sls, you can still select a replacement cost basis If the
bulldlng or bUllness personal property is repaired or
replaced within 6 months of loss.
(15) SUIT AGAINST US
We may not be sued unless there is full compliance with
aU the terms of this policy. Suit must be brought wi.
thin two years (Maryland. 3 years) after the loss occurs.
(16) VACANCY AND UNOCCUPANCY
Property may be unoccupied without UmIt of time, ex.
cept as specified In perU (13) Freezing By Temperature
Reduction of Plumbing, Heating or AIr Conditioning
Systems, or Water Damage and peril (141 Burglary.
There Is no coverage under thls policy after the bulld.
Ing has been vacant for 60 days. There is no sprinkler
leakage coverage any time the bulldlng is vacant.
1171 YOUR DUTIES AFTER A LOSS
In case of a covered loss, you must perform the foUow.
Ing duties:
(a) give us or our Agent immediate notice. If a
crime loss, also notify the police (except
Virginia);
(b) protect the property from further damage. If
necessary for property protection, make
reasonable repairs and keep a record of all
repair costs;
.12.
LIABILITY PROTECTION . SECTION II
(cl furnish a complete Inventory of damaged
property stating Its original cost, At our re-
quest, furnish a completa Inventory of un.
damaged property stating Ita original cost. If
a lossls both less than S10,OOO and 5% of the
amount of Insurance, no special Inventory and
appraisal of the undamaged property shall be
required;
(dl produce for examination, with permission to
copy, all books of accounts, bills, invoices,
reca1pta and other vouchers as we may reasona.
bly require;
(e) show us or our representative the damaged
property, as of tan as may be reasonably re-
quired;
(f) submit to examinations under oath and sign a
transcript of the same;
(g) send us, within 90 days aftar the loss, your
signed and sworn proof of loss statement which
Includes:
1, time and cause of loss;
Your policy prouides Ii4biUty protection for the insul'f!d
PNlmises OIId operations necessary and I'f!/ated to these
pNlmises.
OUR PROMISE
Persons I InJury Llsblllty . Coverage D
Property Damage L1eblllty . Coverage E
We will pay for damages because of personal Injury or
property damage for which the law holds anyone we pro-
tect responsible and which are covered by your policy.
We cover only personal Injury and property damage
which occurs during tbe policy period. The personal In.
jury or property damage must be caused by an OCCUI'"
rence which takes placs In the covered tarrltory.
" We will pay any additional sums or perform any addi.
tlonal acta or services that are explicitly covered under
WHAT WE ALSO PAY, and nothing else,
Medical Payments. Coversge F
We will pay all reasonable medical expenses to any per.
son Injured by an occurrence, We cover only medical
expenses resulting from an occurrence which takes place
during the policy period and In the covered tarrltory.
The services must be rendered within three years of the
occurrence. The occurrence must arlso from a condition
In the premises or operations shown on the Declara.
tlons. The three year limitation does not apply to funeral
expenses.
Medical exponses include:
U) medical, surgical, x.ray and dental services, includ.
ing prosthetle devices, and
(21 ambulance, hospital, professional nursing and funer'
al services.
2, your Interest in the property and the Interest
of all others Involved:
3. any encumbrances on the property:
4. other policies which may cover the I"ss;
5. any changes In title, use, occupancy or pos.
session of the property which occurred duro
Ing the policy tarm;
6, when required by us any plans, speclflca.
tlons and estlmatas for the repair of the
damaged buDding;
7, the Inventory of damaged property as pre-
pared In (c) above;
(hi In addition to the other conditions under Ren.
tal Income Protection (Coverage C), make the
necessary replacements or repairs and resume
operations as soon as possible;
(I) agree to help us enforce any right I)f recovery
against any party liable for loss under this poll.
cy, ThIJ will not apply U you have waived recov.
ery rights In writing prior to a loss,
WHAT WE ALSO PAY
Payment for the following Is In addition to the UmIts
of protection shown on the Deelaratlons.
A. Clslm Expenses
We will pay:
Ul all expenses we Incur and all costs against any.
one we protect in a sult we defend.
(21 alllntarost on the full amount of any judgment
on a sult we defend, untD we offer or dep!lslJ; In
court the amount for which we are lIabl,.
(31 pre-judgment intarest awarded on the amount
of the judgment we pay. If we offer to pay the
applicable UmIt of protection, we will not pay
any pre-judgment Intarest for the period of tlmo
after the offer.
(4) all reasonable expenses Incurred by anyone we
protect at our request to assist us In the Inves.
tlgatlon or defense of any claim or suit. This In.
cludes actual loss of earnings up to S150 per day X
because of time off from work.
(5) premiums on appeal bonds in a suit we defend,
and on attachmont bonds to release property of
anyone we protect: but not for bond amounts
greater than the limit of protection for the cover.
age that applies. We will also pay up to S500 for X
each baD bond required of anyone we protect be-
cause of an accldont or traffic violation arising
out of the use of a vehicle covered by this poll.
cy. We have no obligation to apply for or fur'
nlsh such bonds.
{61 all reasonable lawyers' fees up to S50 that any. X
one we protect incurs because of arrest, result.
-13.
"
Ing from an accldent involving a vehicle covered
by thla poUcy.
B. Firat Aid Expenlea
We wll1 pay reasonable espena6S for fllSt aid to other
X people and anlmall at the time of an accident Involv.
Ing anyone we protect.
WHAT WE DO NOT COVER. EXCLUSIONS
A. We do not cover under Personal Injury Llsbility
(Coverage D), Property Damage IJability (Coverage
EI and Medlcal Payments (Coverage Fl:
(I) Injury or damage espected or Intsnded from the
standpoint of anyone we protect, This does not
apply to personal Injury or property damage
resulting from your protecting persons or
property.
(2) the ownership, maintenance, use or entrustment
to others of an automolJile, aIrc:ralt or watercraft
owned or operated by or rented or loaned to any.
one we protect. Use Includes operation and load.
Ing or WI1oadlng. "Loading or WI10adlng of an
automobUe, aircraft or watercraft" means the
handling of property:
(a) after It Is moved from the place where It Is
accepted for movement Into or on an automo-
bile, aircraft or watercraft;
(bl while It Is In or on an automobile, aircraft or
watercraft; or
(cl while It Is being moved from an automobile,
aircraft or watercraft to the place where It
Is finally delivered.
Loading or WI10adlng of an automobile, aircraft
or watercraft does not Include the movement of
property by mellll8 of a mechanical device (other
than a band truck) not attsched to the automo-
bile, aircraft or watercraft.
ThIs esclualon does not apply to:
(a) parking an automobile on premises owned or
rented by you, or whUe parking the automo-
bile on the ways and means adjoining your
premises, If the automobile Is not owned by
or rented or loaned to anyone we protect;
(bl Uability assumed under an lnaured contract
for the ownership, maintenance or use of air-
craft or watercraft;
(c) Uability arising out of the operations of
equipment Usted under parts (Glib) and (cl of
the defu1ltlon of "mobOe equipment";
(d) watercraft whUe ashore on premises you own
or rent; or
X (el the use of non-owned watercraft 32 feet or
under In length that are not being used to
carry persons or property for a charge,
(3) the use of mobOe equipment whUe used In or
preparing for a pre-arranged racing, speed or
demoUtlon contest or stunting activity.
(41 the transportation of mobile equipment by an
automobile owned, rented, borrowed or operat.
ed by anyone we protect,
(61 damages for which anyone we protect may be
Uable by reason of:
(a) causing or contributing to the Intoslcatlon
of any person;
(b) the fumlshlng of a1cohoUc beverages to a
person under the legal drinking age or under
the Influence of alcohol; or
(cl any stetute, ordinance or regulation relating
to the sale, gift, distribution or use of alco-
hoUc beverages.
This escluslon (6) does not apply to Uability of X
anyone we protect or the indemnitee of anyone
we protect arising out of the giving or serving
of a1cohoUc beverages at functions Incidental to
your business, provided you are not engaged in
the business of lD8Dufacturing, distributing, sell.
Ing or serving of alcohoUc beverages.
(G) damages resulting from war, whether declared
or undeclared, discharge of a nuclear weapon
(even If accidental), hostile or warlike action In
time of peace or war, lnaurrectlon, rebeilion,
revolution, civil war, usurped power, including
action taken by governmental authority In
defending against such an oc:currence.
(7) damages due to
(al the rendarlng of or fallure to render:
1. diagnostic, medlcal, surgical, denta\, s.ray
or nursing service or treatment, or the
fumlahlng of food or beverages with
them, or
2. ambulance, paramedlcal, l'Il8CI1e squad or
other service or treatment conducive to
health;
(hI the fumIahlng or dispensing of drugs or med.
ical, dental or surgicalsuppUes or appliances;
(c) the handling of or performing of autopsios;
(dl the rendering of or fallure to render cosmet-
Ic, ear piercing, tonsorial, massage, phys.
lotherapy, chiropody, hearing aid, optical or
optomotrical servicos or treatments; or
(e) any service of a professional nature, includ.
Ing but not UmIted to:
1. the preparation or approval of maps,
plans, opinions, reports. surveys, de-
signs, or specifications, and
2. supervisory, Inspection or engineering
servicea.
.
, .
B. We do not cover under Personal Injury IJability
(Coverage DI and Property Damage Liability
(Coverage EI:
U) Uability assumed by anyone we protect In a con-
tract or agreement. ThIs esclusion does not ap-
ply to Uability:
(al assumed in a contract or agreement that is
an Insured contract; or
-14.
(bl that aDyone we protect would have In the ab-
sence of the contract or agreement.
(21 (al damages arising out of tha actual, aIIoged or
threatened discharge, dlapersal, rele85e or ea.
cape of pollutants:
1, at or from premlaea you own, rent or
occupy:
2, at or from any slta or location used by or
for you or others for the handling,
storage, dlsposal, procetslng or treatment
of waste;
3. which are at any time transported, han.
, died, stored, treated, disposed of, or
processed as W85te by or for you or any
person or organization for whom you may
be legally responsible; or
4, at or from any site or location on which
you or any contractors or subcontractors
working directly or indirectly on your be-
half are performing operations:
a. If the pollutants are brought on or to
the site or location in connection with
such operations, or
b, If the operations are to test for, moni.
tor, clean up, remove, contain, treat,
detoxify or neutralize the pollutants.
(bl any loss, cost or upense arising out of any
governmental direction or request that you
test for, monitor, clean up, remove, contain,
treat, detoxify or neutralize pollutants.
Subparagraphs 1. and 4.11. of paragraph (al of
this uclualon do not apply to personallajury or
property damaga caused by heat, smoke or
fumes from a hostile fire. As used in this uclu.
slon, a hostile fire means one which becomes un.
controllable or breaks out from where It was
latanded to be.
(31 any obligation of anyone wa protect under any
workers compensation, unemployment compen-
sation, disability beneflte law or any similar law.
(4) lal bodily injury to employees of anyone we pro-
tect arlslag out of their employment by any-
one we protect for which anyone we protect
may be held liable as an employer or in any
other capacity:
(b) any obligation of anyooe we pro teet to in.
demnify or contribute with another because
of damages arising out of tho bodily Injury;
(cl bodily Injury sustained by the spouse, child,
parent, brother or sister of an employee of
anyone we protect as a cons~quenco of bodi.
ly lajury to the employee arising out of em.
ployment by anyone we protect.
This exclusion applies to all claims and sulta by
any person or organization for damages because
of 3Uch hodUy injury Includlng.dameges for care
and loss of services.
This exclusion does not apply to liability as.
sumed by anyone we protect under an Insured
contract.
(6) under parts (21 and 13) of the personal injury defl.
nltion:
(a) contractual liability, except liability for
damages that anyone we protect would have
la the absence of the contract or agreement:
(bl willful violation of a law or ordinance;
(cl lajury arising out of advertising, publishing,
broadcasting or television activities.
(61 suits for libel, slander or defamation of charac.
ter made against anyone we protect If the pub.
licatlon or statement:
(a) took place before the effective date of this
Insurance: or
(bl WIlS knowingly untrue.
(71 property damage to property anyone we protect
owns, rents or occupies.
(8) peraonallaJury or property damage arislag out
of operations on or from uninsured premises
which you own, rent or control, or liability which
you assume under any contract or agreement
relatlag to the uninsured premises.
{91 property damage to property used by anyone we
protect. ThI~ uclusion does not apply to liabili.
ty assumed under a written sidetrack
agreement.
(101 property damage to property in the care, cus.
tody or control of anyone we protect or over
which anyone we protect Is uercislag physl.
caI control This exclusion does not apply to lia.
bility assumed under a written sidetrack
agreement.
(11) property damage to premises you previously
owned or occupied.
C. We do not cover under Medical Payments (Cover-
age F) expenses for bodily laJury to:
(lI anyone we protect.
(21 any person
(al Injured on that part of premlsos you own or
rent and that the person normally occupies:
{bl hired to do work for or on behalf of anyone
we protect or a tenant of anyone we protect:
(cl If benefits are payable under any workers
compensation, unemployment compensa.
tion, disability benefits law or similar law: or
Idl Injured while taking part in athletics.
LIMITS OF PROTECTION - SECTION II
,
Our duty to pay the sums recoverable under this polio
cy for which the law holds anyone we protect responsl.
ble Is subject to the limits shown on the Declaratlone.
For the purpose of detennlnlag our limit of liability, all
personal injury and property damage arising out of con.
tlnuous or ropeated exposure to tho samo general con.
dltions shall be considered one occurrence.
Our limit of liability Is not increased regardless of the
number of people we protect, claims made or persons
injured as a result of an occurrence.
.15.
Persons' InJury L1eblllty . Coverege 0
Property DemagOJ Liability. Coverege E
Medlcsl Peyments . Coverege F
The amount ehown on the Declaretlone for "EACH OC.
CURRENCE" is the total limit of protection for all
damages because of personal Injury, propert,y damege
or medlcalexpense to one or more pereons or organiza-
tions aa a result of anyone occurrence.
The amount shown on the Declarations for "POLICY
AGGREGATE" is the total Umlt of protection for all
damages because of all:
(ll property damage,
(2) medlcal expense. or
(3) penonallnjury under pe.rtIJ (21 and (31 of the personal
injury definition.
aa a result of one or more occurrences.
Medlcsl Payments' Coverege F
The amount shown on the Declaretlons for "EACH
PERSON" is the total Umlt of protection for all medl.
cal expenses to anyone person aa a result of anyone
occurrence.
The Limits of Protection for this poliey apply separately
to each consecutive annual period and to any remain.
Ing period of less than 12 months. starting with the In.
ception date of the poliey period shown on the
Declaretlons, If the poliey period is extended after the
policy is issued for an additional period of loss than 12
months, then the additional period will be deemed part
of the laat preceedlng period for purposes of determin.
Ing the Limits of Protection,
CONDITIONS. SECTION II
II) BANKRUPTCY OF ANYONE WE PROTECT
Bankruptcy or insolvency of anyone we protect or any-
one we protect's estate will not relieve us of any of our
obligations.
.. 121 LAWSUITS AGAINST US
No person or organization haa a right under this policy:
{al to join us as a party or othorwise bring us into
a suit asking for damages from anyone we pro-
tect: or
(bl to sue us unless all the terms of this policy have
been fully complied with.
A person or organization may sue us to recover on an
agreed settiement or on a final judgment against any.
one we protect obtained after an actual trial: but we will
not be liable for damages that are not payable under
tho terms of this policy or that are in excess of the ap'
plicable Umlt of protection. An agreed settlement me-
ans a settlement and release of liability signed by us,
anyone we protect and the claimant or the claimant's
legal representative.
Virginia Only:
Any person, organization or legal representative thereof
who has secured a judgment against anyone we protect
I. then entitied to bring action against us to recover
damage. up to the amount of Insurance avallahle un.
der this policy,
(31 MEDICAL PAYMENTS. COVERAGE F
The Injured person will submit to examination. hy doc.
tors selected by us, as often as reasonably required, We
will pay either the Injured person or the provider of the
services. Payment Is not an admission of llability,
(4) OTHER INSURANCE
We will pay tho.e sums not covered by other valid and
collectible Insurance, up to the appllcable Umlts of this
pollcy.
When this Insurance and other valid and collectible in.
surance'apply to the loss on the same baais, our obllga.
tlons are as follows:
(al If the other Insurance provides for contribution
by equal shares, we will pay our equal share of
the loss. Each in.urer will pay equally with the
others up to its Umlt of protection.
(bl if the other Insurance does not provide for con.
tribution hy equal shares, we will pay the propor.
tion of the loss that the appllcable 11m.lt of
protection of this polley bears to the total11m.lt
of protection of all appllcable Insurance.
(5) SEVERABILITY OF INSURANCE
This Insurance applies separately to anyone we protect.
This condition shall not increase our limit of llability
for anyone occurrence.
161 WHAT TO DO WHEN AN ACCIDENT HAPPENS
When there Is an accident or occurrence, anyone we pl'l)o
teet will:
lal notify us or our Agent in writing as aoon as pos.
sible, steting
1. your name and poliey number;
2. the time, place and circumstances of the ac.
cldent or occurrence:
3, names and addresses of injured persons and
witnesses.
Ibl send us any papers that relate to the accident
or occurrence.
(cl at our request:
1. assist in making settlement;
2. holp us onforce any right of recovery against
any party liable to anyone we protect:
3. assist In the cdnduct of lawsuits:
4, attend hearings and trials:
5. secure and give evidence and obtain the at.
tendance of witnesses;
6. submit to statements under oath:
7. authorize us to obtain records and other in.
formation.
Anyone we protect will not make payments, assume ob.
ligations or Incur oxpenses, other than for fust aid, ex.
copt at their own cost.
.16.
RIGHTS AND DUTIES
GENERAL POLICY CONDITIONS
SECTION III
We, you and anyone elae protected by this policy must
do certsln things In order for the terms of the policy
to apply,
111 AUTOMATIC RENEWAL POLICY
Your policy will be automatically renewed at the end
of the policy period, unIus terminated by you or us In
accordance with the steps uplslned In the Cancellation
Condition.
Each year, we will send you a Renewal CerlIflc:ate which
shows the premium due for the nezt policy period.
This Is a service that we provide for you so that your
Insurance protection does not stop.
If you do not wan~ the renewal policy, you must mall
our Agent or us written notice In advance of the new
policy period, If you do not notify us, your policy re-
mslns In effect, You must pay us the earned premium
due us for this time.
(2) CANCELLATION
Your Right to Cancel or Reluse Renewal
The first named Insured shown on the Declarations may
cancel this policy or any coverage by mailing our Agent
or us written notice stating at what future date you
want the cancellation to take effect.
Our Right to Cancel or Reluse to Renew
We may cancel or refuse to renew by mailing the first
named Insured written notice stetlng the effective date
,'. of the cancallatlon. Notice will be sent to your last
known address. Cancallatlons and non.renewals will
comply with the laws of the state In which your busl.
ness Is located, The cancellation will not take effect un.
til at least 30 days (Maryland and Virginia. 46 days,
. ezcept for non.payment of premium. 30 daysl after we
. send it. For states that require a different number of
days for notification of cancellation or non.renewal, an
Amendatory Endorsement Is attached,
Method 01 Giving Notice
Mailing notice will be sufficient proof of notice. Dellv.
ery of the notice by you or ua will be equivalent to
mailing.
Return 01 Premium
X If your policy Is cancelied, we will return the pro rata
unused share of your premium. The cancallatlon will be
effective evon If we have not given or offered the return
premium,
131 CONCEALMENT, FRAUD OR MISREPRESENTATION
This entire policy is void If before or after a loss any.
one we protect has intentionally concealed or mls.
represented any material fact or circumstanco relating
to this Insurance.
In the event of a fraudulent claim, we will not make pay.
ment for the loss.
I,ll HOW YOUR POLICY MAY BE CHANGED
The terms of the policy which are In conflict with the
laws of the state In which It lalssued are automatically
changed to agree with the laws.
We will automatically give you the benefit of any In. X
crease In coverage made by us or by law, II there Is no
added premium charge.
Asking one of our Agents to make a change In your poll.
cy Is like asking us. If we agree with your request, we
will then Issue an Amended Declarations or Notice of
Change Endorsement, Your request must contain
enough information to Identify you.
(5) INSPECTION AND AUDIT
We have the right but are not obligated to:
(a) make Inspections and surveys at any time:
(bl give you reports on the conditions we find; and
Ic) recommend changes.
AJJy inspections, surveys, reports or recommendations
relate only to Insurability and the premlwns to be
charged. We do not make safety inspections. We do not
undertake to provide for the health or safety of workers
or the public, We do not warrant that your property or
operations are safe, healthful or In compliance with any
law, regulation, code or stendard. Inspections, surveys,
reporta or recommendations are for our benefit only,
This condition also applies to any rating, advisory, rate
service or similar organization which makes Insurance
inspections, surveys, reports or recommendations.
We may ezamlne and audit your books and records at
any time during or within three years after the policy
period, as they relate to this Insurance.
(5) OUR RIGHT TO RECOVER FROM OTHERS
If anyone we protect has a right to recover all or part
of any payment we have made under this policy, the
right to recover is transforred to us. This right will not
apply under Section I if you have waived It In writing
prior to loss. AJJyone we protect must do nothing to
harm that right. Anyone we protect will bring suit or
transfer the right to recover to us and help us enforce
tho right to recover.
171 POLICY ACCEPTANCE
By accepting this policy, you agree that the ststements
on the Declarationa are accurate and complete and are
based on tho facts you have given us. This policy is is.
sued In reliance on these facts.
181 PRIORITY X
At our option, this Insurance wili first protect you, and
secondly others listed under the dermltion of anyone we
protect.
.17.
.'
(91 TIME OF INCEPTION
If thll poUey I'IpllCllllllother poUey ending at noon on
the dlte of thll poUey, we wW protect you el of that
time.
ADDITIONAL I!RII! INSURANCE EXCHANGE
CONDITIONS
The following condltlonl Ipply only to poUclel IlIued
by Erie Insurance Ezehanlle.
III ACCOUNTING
Erie Indemnity CompllllY, .. Attorney.in.Fact, may
X keep up to 25% of the pl'lmlum In I'Itum for agreeing
to I'Iprelent you, Thil amount wW be ueed to pay ex.
pelll8l of manllpment, including lalll conunllllonl, la.
Iarlel, and other employment eOlte, the COlt of IUppUII,
and other admlnlatratlve COlts.
The rolt of the premium will be placed on the books of
Erielmurance Ezchange, We will depollt or invelt this
amount.. permitted by law.
TbII amount will be Uled to pay 101lel, adjultment ex.
penees,1egal expenees, court COlts and l'IinluranCl. Tbe
I'Imalnder.1f eny, will be ueed for purposes Erie Indem.
nlty Compauy decides are to the advantage of the Sub-
scribers.
121 NO CONTINGENT LIABILITY
You will not be 88Slleed for the losses of Sublcribers.
(31 RECIPROCAL AGREEMENT
In I'Itum for your pl'lmlum payment lIIId your elgnlng
a power of attorney to Erie Indemnity Company, we
egree to provide the coverages you have chosen, Your
choices are shown on the Declerltlonl, which are part
of thll poUey.
Your Ilgnlng the power of attorney permits Erie Indem.
nlty Company to represent you lIIId to arrenge recipro-
cal Inluranee contracts between you and the other
Sublalberl,
Your responllbWty .. a Sublcriber II determined by
thle poUey alone, You ellllDot be held responsible for the
UabWty of the other Subseribere,
ThIs Igreement Is made in nillanCl on the facts you have
given us, and Is subject to all terms of thll poUey.
ADDITIONAL ERIE INSURANCE COMPANY
CONDITION
The following condition appUes only to poUeles Illued
by Erie IMuranc. Compony.
AGREEMENT
In return for your premium payment, we agree to pro-
vide the eoveragel you have eholen. Your cholCls are
IhOWD on the Declarations, which ere pert of this polley.
ThIs agreement Is made in nillance on the facts you have
given us, and Is subject to all terms of thle poUey,
.
THIS POLICY HAS BEEN SIGNED ON OUR BEHALF AT ERIE, PENNSYLVANIA BY OUR CHAIRM~ AND
SECRETARY. IF REQUIRED BY LAW, IT HAS BEEN COUNTERSIGNED ON THE DECLARATIONS BY OUR
DULY AUTHORIZED AGENT.
112 fC~J/~_
SECRETARY
~tr
CHAIRMAN
I
ERIE.
ERIE INSURANCE EXCHANGE . ERIE INSURANCE COMPANY
MEMBERS' ERIE INSURANCE GROUP
Home Qlliee . 100 eno Insurance P1aco . Eno. Pennsylvania 16530
ULL lEd. 5/88) IRI
.18.
, "
I
~ ERIE INSURANCE GROUP
ERIE.
GENERAL USE
PENNSYLVANIA AMENDATORY ENDORSEMENT
CONDmON8
The CANCELLATION CONDITION In Jour basic pollcy
Is deleted and replaced by the following:
CANCELLATION
Your Right to Canc.1 or R.lu.. R.n.wal
The fUSlIWIIed III5ured shown on the Deduadoas may can.
eel this pollcy or any coverage by mailing our Agent or as
written notice stating at what future date JOU want the can.
ceIIaUon to take effect,
Our Right to Canca. or Ralu.. to Ranew
We may cancel or refuse to renew by malllngJou written
notice stating the effective date of the cancellaUon. Notice
wII1 be sent to your last known address. Cancellation and
"
non-renewals will comply with the laws of the state In which
Jour business Is located.
The cancellation or non.renewal will not take effect until
at least 60 clays after we send It, unless one or more of the
foUowlng exist. The cancellation will not take effect until
at least 30 clays after we send it, if
(I) anJoae we protect bas made a material misrepresenta-
tion whlcb affects the lnsurabWty of the risk;
(2) IDJoae we protect has failed to pay a premium when
due; or
(3) the poUcy has been In effect less than 60 days, unless
It Is a renewal. We will send the notice no later than the
60th clay.
We may also cancel this policy for Jour material failure to
comply with safety standards and/or Loss Control n:c:om.
QU-18 (Ed. 1/88) UF.j69J
mendatioR5, provided that:
(I) we send you written notice concerning your failure to
comply with safety standards and/or Loss Control
recommendaUoR5; and
(2) we have provided you with a reasonable opportunity to
correct deficiencies with respect to safety standards
and/or Loss Control recommendatloR5; and
(3) you have failed to correct these deficiencies.
Nothing shall restrict our right to resc:ind an Insurance policy
upen discovery that the pollcy was obtained through fraudu.
lent statements, omlssloR5 or conc:ealment of fact material
to the acceptance of the risk or to the hazard assumed by us.
Method 01 Giving Notlca
.
Mailing notice wII1 be sufficient proof of notice. Delivery
of tbe notice by JOU or us wII1 be equivalent to mailing.
Return 01 Premium
If your policy Is canceUed, we will return the pro rata un-
used share of Jour premium. Any unearned premium will
be returned at the time we cancel or within 10 business days
after the effective date of canceUatlon, unless a longer time
period Is permitted by law.
Incraa.. 01 Ranewal Premium
We wII1 notify JOU of our Intent to Increase your renewal
premium at least 60 days In advance of the renewal date of
this pollcy. Notice of an estimate of the renewal premium
will be sent to JOU at least 30 days In advance of the renew-
al date of this policy.
" '
"
,
.'
'I ERIE INSURANCE OROUP
ERIE.
GENERAL USE
GU..,/lL0910 (Ed. 1218') UF."82
PENNSYLVANIA NOTICE
The ERIE, ilS AaenLl, employees or service contractors act.
ina on ILl behaJr, may provide services to reduce the Iikeli.
hood of injury, death or Iou. These services may include
any of the followina or related services incident to the ap.
plication for, Issuance, renewal or continuation of, a poli.
ey of Insurance:
(I) surveys:
(2) consultaUon or advice: or
(3) Inspections.
The "Insurance Consultation Services exemption Act" of
PeMSylvanJa provides tbatthe ERIE, ILl AaenLl, employees
or service contractors actlna on ILl behalf. Is not liable for
damaaes from injury, death or loss occurrlna as a result of
GU..,/IL0910 (Ed. 1218') UF.jj82
any act or omission by any person In the fumlshlna of or
the failure to furnish lhese services.
The Act docs nOI apply:
(I) If the injury, dealh or loss occurred durlna the actual
performance of the services and was caused by the ncali-
aence of the ERIE, ILl AaenLl, employees or service con.
tractors;
(2) to consultation services required to be performed un.
der a wrInen service contract not related to a policy of
insurance; or
(3) if any aClS or omissions of lhe ERIE, Its Aaents, em.
ployees or service contractors are judiclally determined
to consUtule a crime, actual malice or aroll neallaence.
GU-44 (Ed. 3/93) UF-6770
I ERIE
INSURANCE
GROUP
ERn; PENNSYLVANIA AMENDATORY ENDORSEMENT
(Wonls in bold type lie used as damed in the basic polley, unleu
deIined In this endonemenl.)
ADDITIONAL CONDITION
The foncnrilg.coodhlon Is added to YOIU' basic polley.
ASSIGNMENT
Int.erell in your basic polley may be transf'erred only with
OlD' writtaI COIIICIIt.
If JOG die, YOlD' balc policy will cover:
A, any penon or O'll"'I",tiOll baving IawfW pouession
or iDsured plOpeny IDltil a lepI representative is
appointed, or
B. JOIU' legal representative, bul only while penorming
duliel as JOIU' representative.
After JOIU' death, )'OW' basic polley wiD remain in efl'ect
for the longer of the following periods:
GU-44 (Ed. 3/93) UF-6770
,
A. 180 days, unleu the insured propeny Is sold: or
B, IDltil the end of the policy period, unless the insured
plOpeny Is sold.
CONDITIONS
CONCEALMENT, FRAUD OR MISREPRESBN.
TATlON CONDmON In YOW' basic policy is deleted
and replaced by the fonowing:
ThIs polley may be cancelled, If' before or Ifter a loss,
&DYoue we protecl bas intenUonally concealed or mlsrep.
resented any material fact or circumSllDce which alI'ects
the insurablli1y of the risk.
In the evenl of a liaudulenl claim, we will nol make pay.
ments for the loss,
" .
.'.
~
~ ERIE INSURANCE GROUP
ERIE.
OENERAL USE
PENNSYLVANIA AMENDATORY ENDORSEMENT
CONDmONS
The CANCELLATION CONDITION in your basic polley
is deleted and replaced by the following:
CANCELLATION
Your Right to Cancel or Refu,e Renewal
The rll'St IIIIIIed Iasured sbown on the Dedaftdoas may can.
cel this polley or any COVCl'lle by mailing onr Agent or as
written noUce staling at wbat future date Jon want tbe can.
cellaUon to take effect.
Our Right to Cencel or Refu.. to Renew
We may cancel or refuse to renew by mailing yon written
notice staling the effective date of the cancellation, Notice
will be sent to your last known address. Cancellation and
non.renewals will comply with the laws of the state in which
your business is located.
The cancellation or non.renewal will not take effect until
at least 60 days after we send it, unless one or more of the
following exist. The cancellation will not take effect until
at least 30 days after we send It, If
(I) IDJone we protect bas made a material misrepresenta.
tlon whicb affects the insurability of the risk;
(2) anyone we prolect has failed to pay a premium when
due; or
(3) the polley has bccn In effcctless than 60 days, unless
it is a renewal. We will send the notice no later than the
60th day.
We may also cancel tbls polley for your material failure to
comply with safety standards and/or Loss Control recom.
QU-18 (Ed. 1/88) UF-J691
mcndations, provided that:
(I) we send you written notice concerning yonr failure to
comply with safety standards and/or Loss Control
recommendations; and
(2) we have provided you with a reasonable opportunity to
correct deficiencies with respect to safety standards
and/or Loss Control recommendations; and
(3) you have failed to correct these deficiencies,
Notblns shall restrict our right to rescind an insurance polley
upen discovCl)' that the polley was oblained through fraudu.
lent statements, omissions or concca1ment of fact material
to the ac:ccptance of the risk or to the hazard assumed by us.
Melhod 01 GIving Notice
Mailing noUce will be sufficient proof of notice. Delivery
of the noUce by JOU or us will be equivalent to mailing.
Relurn of Premium
If yonr polley is cancelled, we will return the pro rata un.
used share of yonr premium. Any unearned premium will
be returned at the time we cancel or within 10 business days
after the effective date of cancellation, unless a lODger time
period is pennitted by law.
Incr.... 01 Renewal Premium
We will Dotify you of onr Intent to Increase your renewal
premium at least 60 days In advance of the renewal date of
this polley. Notice of an estimate of the renewal premium
will be sent to yon at least 30 days in advance of the renew.
aI date of this policy.
t .' .
. .. .
VERIFICATION
I hereby state that I am duly authorized to take this verification and that the facts
as set forth in the foregoing document are true and correct to the best of my personal
knowledge.
These statements are made to the penalties of t 8 Pa. C.S. Section 4904 relating to
unsworn falsifications to authorities.
-u~ /5 f..-t~ "
WILLIAM B. GOETZ
Date: /1- ,J?, Clj....
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SHERIFF'S RETURN - OUT OF COUNTY
CASE NOI 1993-06790 P
CO""ONWEALTH OF PENNSYLVANIA;
COUNTY OF CU"BERLAND
GOETZ WILLIA"
VS.
ERIE INSURANCE EXCHANGE ET AL
R, Thomas Kline . Sheriff, who being duly sworn according
to law, says, that he made a diligent search and inquiry for the within
named defendant, to wit: ERIE INSURANCE EXCHANGE
ERIE INSURANCE GROUP
but was unable to locate Them in his bailiwick. He therefore
deputized the sheriff of ERIE
to serve the within CO"PLAINT
County, Pennsylvania.
On December
8th. 1995
. this office was in receipt of
County, Pennsylvania.
the attached return from
ERIE
Sheriff's Costs:
Docketing
Out of County
SurcharBe
ERIE CO NTY
18,00
9.00
2.00
57.00
So answers: ,
///' /#;
~-f .'/~~-:a' p/ ~_....J.
H. I homas 1\.L1ne, l:;her1:l:l
e86.00 ROGER HARRINGTO
12/11/1995
Sworn and subscribed to before me
this ,fJ ~ day of I.A~.. I~- -
19 90/ A. D.
,-\
~~I~O l~ .~.
rO~honotary
SHEH I f- F-' S Fi!:.l UIiN" REGULAR
CASE NO: 1395-06790 T
COMMONWE~L1H OF- P!:.NNSYLVANIA,
COUNTY Of- ElliE
~HLLlAM GOETZ
VS.
ERIE INSURANC!:. eXCHANGE
DEPUTY i'JAUL Sfl!:.l N!:.H
, Sheriff Dr Deputy Sheriff of
EHIE County, Pennsylvania, ~Io being duly sworn according
to law, says, the Within COMPL~INl
upon EH1!:. INSURANC!:. eXCHAN8E. eRl!:. lNSURANC!:. SHOUP
defendant, at 1625:00 HOURS, on tile 'Ith day of Dp.cember
was served
the
1395 at
ERIE. Pfl
101 EHI!:. INSUNRNC!:. PLRC!:.
16530
, E:.fllE
CO~lIlty, Pennsylvania, by handing to J~NEl Pf-ISl!:.lI. RE:.CEPTIrJNlST
a true and attested copy of the COMPLAIN]
and at the same time dil'ect ing Her attent ion to the contents thereof.
Sheriff's Costs:
Docketing
Sel'V ice ..
Affidavit
Surcllarqe
.00
~7.00
.00
.00
Bo answet4S:
W~utc?J: 11~~
~57.00 CUMO!:.f{LAND CU SHE~II'F
12/04/~:9~ h'.~ '
_a,-(.c;~{~,1.~
Sworn alld
this t)'
1':J C\lJ
subscribed to before me
day of ~C!:lr\.~~__
R. D.
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In The CourT 01 C=mmO:1 ple:s 01 C:Jr,::,"~oitt'i:nd C=r.::i~'YI Pannsyl'lcr:io
William Goetz
'lS.
Erie Insurance Exchange, Erie Insurance Group
~o.
Q~-~?QO Civil Tprm
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I.D. No. 320U
GOLDIIEIlG,ItATZMAN .. S11IPMAN, r.c,
320__
P.O. Box 1261
Hanlobura, PA 17101-1261
AtlnnYiv tbr D.&nd..nI
WILLIAM GOBTII,
IN THE COURT OF COMMON PLEAS
CUMBERLAND COUNTY, PENNA.
HO. 95-6790 CIVIL TBRK
Plaintiff
v.
BRIB IHSURAHCB BXCBAHGB,
BRIB IHSURAHCB GROUP,
Defendants
JURY TRIAL DEMANDED
PRAECIPB rOR BNTRY or APPEARANCB
TO '.rJIB PROTBOHOTARY 01' COJUlBRLAHD COmITY:
Please enter the appearance of Thomas E. Brenner,
Esquire, of Goldberg, Katzman & Shipman, P.C., on behalf of
Defendants Erie Insurance Exchange and Erie Insurance Group in
this matter.
Respectfully submitted,
GOLDBBRG, KATIIMAH , SHIPMAH, P.C.
By, ~f.:;: ..quir.
Attorney 1.0. No. 32085
320 Market Street
Strawberry Square
P.O. Box 1268
HarriSburg, PA 17108-1268
(717) 234-4161
Attorneys for Defendants,
Erie Insurance Exchange and
Erie Insurance Group
DATED: j_}O-9.b
.....,.......'
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,
CBRTI.ICATB O. SBRVICE
I hereby certify that I am this day serving a copy of the
foregoing document upon the person(s) and in the manner
indicated below, which service satisfies the requirements of
the Pennsylvania Rules of Civil Procedure, by depositing a
copy of same in the United states Mail at Harrisburg,
Pennsylvania, with first-class postage prepaid and addressed
as follows:
Roger J. Harrington, Esquire
O'Brien and O'Brien Assooiates
1260 Suburban Station Building
Philadelphia, PA 19103
By:
GOLDBERG, KATZMAN , SHIPMAN, P.C.
asJl~
Thomas E. Brenner, Esquire
Attorney I. D. No. 32085
320 Market Street
Strawberry square
P.O. Box 1268
Harrisburg, PA 17108-1268
(717) 234-4161
Attorneys for Defendants
DATED: J-/1J-9h
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Thoma. B, Brenn.r, ..qulr.
GOLDUIlG, ~11IAII , .BI'MAIl, P.C,
320 Market Stre.t
Strawberry squar.
P,O. Box 1268
Harrl.burg, PA 17108-1268
Attorney I.D, #32085
(717) 234-4161
WILLIAM GOBTZ,
Plaintiff
IN THE COURT OF COMMON PLEAS
CUMBERLAND COUNTY, PENNA.
NO. 15-6710 CIVIL TBRN
v.
BRIE INSURANCB EXCHANGB,
BRIE INSURANCB GROOP,
Defendants
JURY TRIAL DEMANDED
.
.
NOTICE TO PLEAD
TO: William Goetz, Plaintiff; and
Roger J. Harrington, Esquire
O'Brien and O'Brien A..oaiate.
1260 Suburban Station Building
Philadelphia, PA 19103
You are hereby notified to plead to the enclosed Answer with
New Matter of Defendant, Erie Insurance Exchange, within twenty
(20) days from service hereof or a default judgment may be entered
against you.
Date: 1-IS-'l'
, SHIPMAN, P.C.
Esqu re
320 Market street
P,O. Box 1268
Harrisburg, PA 17108-1268
Attorney I,D, No. 32085
(717) 234-4161
Tho.... B. Bn....,lIoqulro
I.D, No, 3201.l
GOLDBERG,ItATZMAN . S1I1I'MAN, P.C,
310 _ SInoI
P.o, Box 1261
HartbbulJ, PA 17101.1261
Attomav (01' net.ndlnt
WILLIlUI GOBTZ,
IN THE COURT OF COMMON PLEAS
CUMBERLAND COUNTY, PENNA.
NO. is-'7iO CIVIL TBRM
plaintiff
v.
BRIB INSURANCB BXCHANGB,
BRIB INSURANCB GROOP,
Defendants
JURY TRIAL DEMANDED
ANSWBR WITH HEW HATTBR
OF DEFENDANT BRIB INSURANCB EXCHANGE
AND HOW, comes Defendant, Erie Insurance Exchange, by its
attorneys, Goldberg, Katzman and Shipman, P.c., who states:
COUNT I
1. Admitted.
2. Denied as stated. The company which issued the two
insurance policies is Erie Insurance Exchange.
3. Admitted.
4. Denied. Any damage to Plaintiff's properties were
as a result of deterioration, depreciation, wear and tear,
insects, design deficiencies, deficiencies of workmanship,
':
deficiency in materials used in construction, and/or poor
maintenance.
5. Denied. This paragraphs states a legal conclusion
to which no response is necessary. In further response,
Plaintiff did not present a claim that came within the policy
conditions.
6. Denied. Defendant denied the claim presented by the
Plaintiff as it does not come within the policy coverage.
Said denial was not in violation of 42 Pa. C.S. 58371.
WHERBFORB, Defendant, Erie Insurance Exchange, requests
that Count I of Plaintiff's Complaint be dismissed, with
prejudice.
COUNT %1
7. The answers to paragraphs 1 through 6 are
incorporated herein by reference.
8. Admitted.
9. Denied. Any damage to Plaintiff's properties were
as a result of deterioration, depreciation, wear and tear, old
2
events not occurrinq within the policy period, desiqn
deficiencies, deficiencies in workmanship, and/or poor
maintenance.
10. This paraqraphs states a leqal conclusion to which
no response is necessary. In further response, Plaintiff did
not present a claim that came within the policy conditions.
11. Denied. Defendant denied the claim presented by the
Plaintiff as it does not come within the policy coveraqe.
said denial was not in violation of 42 Pa. C.S. 58371.
WBBRB~ORB, Defendant, Erie Insurance Exchanqe, requests
that Count II of Plaintiff's Complaint be dismissed, with
prejudice.
NEW MATTER
12. As to the claim for the York County property, the
provisions of the policy set forth on paqes 9 and 10 exclude
claims for:
a. Deterioration or depreciation;
b. Settlement, crackinq, shrinkinq, bulqinq or
expansion;
c. Wear and tear, rust or corrosion, mold or
rottinq;
3
- <"_,,,,,,"-~rc.ct,.........=-.,,,.....~,.~.".,."
d. Latent or hidden defects;
e. Vermin or insects;
f. Arising from r~in, snow or water damage not
arising from a covered loss arising from
defective or inadequate design, development of
specifications, workmanship or construction;
g. Arising from use of improper materials and
construction; and
h. Arising from improper maintenance.
13. As to the Claims arising from the Mechanicsburg
property, they are excluded from coverage based upon the
language of the policy set forth on pages 8 and 9, including:
a. Deterioration or depreciation;
b. settling, cracking, shrinking, bulging or
expansion of materials;
c. The loss not be caused by the weight of ice or
snow; and
d. The damage preexisted the alleged loss date of
January 17, 1994.
14. Erie acted in good faith in the investigation,
evaluation and denial of the Plaintiff's claims. The
Mechanicsburg claim was denied by letter of January 12, 1995
and the Dillsburg claim was denied on January 13, 1995.
(Copies of denials attached as Exhibits "A" and "8").
4
15. Plaintiff's claims do not constitute a covered loss
under the terms of the pOlicies issued by Erie Insurance.
WlER.WORI, Defendant, Erie Insurance Exchanqe, requests
that Plaintiff's Complaint be dismissed, with prejudice.
Respectfully SUbmitted,
~TZMAN , SHIPMAN, P.C.
.JX~
Thomas E. Brenner, Esquire
Attorney 1.0. No. 32085
320 Market street
strawberry Square
P.O. Box 1268
Harrisburq, PA 17108-1268
(717) 234-4161
Attorneys for Defendant,
Erie Insurance Exchanqe
DATED: 1f-/5'9ia
5
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RPR 15'96 lBI34RM G,K,S.,P,C,
P,7
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I, ~ ~ L~ , herebyaclmowled
I am the(i ~S'~i of Erie Insurance
that I am authorized to take this aftidavit on
that I have read the toregoing Answer With New Hatter;
that the facts stated therein are true and correct to t
d
of my knowledge, information and belier.
I undaratand that any false statementa hare in are ade
subject to penalties of 18 Pa.e.s. 54904, relating to sworn
falsification ~o authorities.
ERrl I.8~CI IZOBAKGB
BYI
DATED:
J
'n',';,,'
",.....<D
F \ .\..... -e...-
Mr. William B. Goetz
326 South Tenth street
Lemoyne, PA 17043-1798
January 12, 1995
Our Claim No. I
Our Insured:
Date or Loss:
0101701335~
William B. Goetz
1/17/94
Dear Mr. Goetz:
We have reviewed the racts or your claim. We understand that you
believe the damage to your property was caused by the weight or
ice, snow or sleet during the early months or 1994.
We wish to be rair in handling your claim, but arter having
inspected your property and reviewing the attached report prepared
by Eugene J. Auriero & Associates Inc., we believe the damage to
your property was not caused by the weight or the ice storms or
last winter.
Our decision on this case was based upon the following
observations:
1. Some of the damage viewed had occurred prior to last winter's
storms. ,
2. Some of the damage was caused by deterioration or
depreciation.
3. The remaining damage was not caused by the weight of ice and
snow.
Sincerely,
Gary Rini
Property Claims specialist
P.O. Box 954
camp Hill, PA 17011
(717) 975-2729
GR:bjw
EnClosure/Engineer's Report
. ~GR
\/t:c: File
cc: Mr. Daniel Soboloski
Assured Adjustment Associates
931 Huntingdon Pike
Huntingdon Valley, PA 19006
I'
.~.
r:s ERIE INSURANCE GROUP
~ The ERIE Is Above Allin SERViCE. ' Sinco 1925
ERIE.
<....~.,. ,~ ~~1',.{'.:' ,
"CMUO@
.
.
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.
.
Mr. William E. Goetz
326 South Tenth street
Lemoyne, PA 17043-1798
January 13, 1995
Our Claim No.:
Our Insured:
Date of Loss:
/
010170125569
William E. Goetz
1/17/94
Dear Mr. Goetz:
We have reviewed the facts of your claim. As you probably know,
our obligation as an insurer is to pay for direct physical loss to
property caused by perils we insure against, except if the loss is
caused directly or indirectly by one or more of the excl~sions
listed in your policy. We must be guided by all information
available to us, including photographs taken by Erie Insurance
Representatives, as well as the attached report prepared by
Eugene J. AUfiero & Associates, Inc. following a detailed site
inspection.
We wish to be fair in handling your claim, but the facts indicate
that damage to your property has been caused by events that are
specifically excluded in your policy. For this reason, we must
respectfully decline payment of your claim.
Our decision on this case was based upon our inspection of your
property and our review of the attached engineer's report, both of
which indicate that the damage to your property has been caused by
one or more of the following events:
1. By deterioration or depreciation.
2. By wear and tear, rust or corrosion, mold or rotting.
3. By latent or hidden defect.
4. By vermin or insects.
(continued. ..)
.-
~ ERIE INSURANCE GROUP
~ The ERIE Is Abovo All In SERViCE. . Since 1925
~m~
~."...,/..;>.' .~',,'~".;r'''''~ .-,..- ..-....~,.-..~ -,."""'.....'.:'..~,
.
.
Page 2 - 010170125569
.,
.
5. By faulty, inadequate, or defective:
a) Design, development of specification, workmanship,
construction.
b) Materials used in construction, or;
c) Maintenance.
GRtta
E~osuretEngineerls Report
~c: file
cc: Mr. Daniel Soboloski
Assured Adjustment Associates
931 Huntingdon Pike
Huntingdon Valley, PA 19006
Enclosure
11'
r:N ERIE INSURANCE GROUP
~ Tho ERIE Is Above Allin SEnVICE. . Sinco 1925
r.R1r. '
sincerely,
Gary Rini
Property Claims Specialist
P.O. Box 954
Camp Hill, PA 17011
(717) 975-2729
'.. ",...... ~,_,;,.,_..\ c. ,~. ,. ".. ..... _~_ .>~, -,...,
CBRTII'ICATII 01' SIIRVICII
I hereby certify that I am this day serving a copy of the
foregoing document upon the person(s) and in the manner
indicated below, which service satisfies the requirements of
the Pennsylvania RUles of civil Procedure, by depositing a
copy of same in the United states Mail at Harrisburg,
Pennsylvania, with first-class postage prepaid and addressed
as follows:
Roger J. Harrington, Esquire
O'Brian and O'Brian A..oaiata.
1260 Suburban station Building
Philadelphia, PA 19103
GOLDBBRG, KATZMAN , SHIPMAN, P.C.
""...."'-
Thomas E. Brenner, Esqu re
Attorney I. D. No. 32085
320 Market Street
strawberry Square
P.O. Box 1268
Harrisburg, PA 17108-1268
(717) 234-4161
Attorneys for Defendants
DATED: 4-/(,-h
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WILLIAN GOITI, IN THE COURT OF COMMON PLEAS
Plaintitt CUMBERLAND COUNTY, PENNA.
v. : NO. '5-17'0 CIVIL TaRN
laII INSURANCI IZCRANGI,
BRII INSURANCI Gaoup,
Detendants
.
.
.
.
JURY TRIAL DEMANDED
STIPULATION
AND NOW, come the parties by their attorneys who agree to
the deletion ot Erie Insurance Group as a named Detendant to
this litigation.
;: Date: S:31.q~
William Goetz
c.~ ,
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r ngton, Esqu re
O'Brien and 0' rien Associates
1260 Suburban station Building
Philadelphia, PA 19103
.
.'
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Erie Insurance Exchange
BY~~' ~
'~~ E. Brenner, Esquire
GOLDBIRG, KATIMAN , SHIPMAN, P.C.
320 Market Street
strawberry Square
P.O. Box 1268
HarriSburg, PA 17108-1268
Date:&,...?1} }l b
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JUL 1 6 1996 b?-
. I
WILLIAH GOBTZ,
: IN THE COURT OF COMMON PLEAS
: CUMBERLAND COUNTY, PENNA.
plaintiff
.
.
v.
: NO. 95-6790 CIVIL TBaK
.
.
BRIB INSURANCB BXCHANGB,
Defendant
JURY TRIAL DEMANDED
ORDBR
AND NOW, this /81A day of c;l.Jrr- ' 1996, the
Court directs that the parties appear for a hearinq on the
discovery motion to occur (}arM/.- 3~ /Y9~ Qt: .3:.iO/d'J'},o,#1 e"e -- <f.
7- II d-
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I.D. No, 3201S
GOLDBEIlG.ItATZMAH" S1I1PMAN. '.C.
320 MarbI_
'.0. loa 1261
1IanIJllwJ,'A 17101-1261
ADam.. tor Darendalll
WILLllUI GOITI,
.
.
IN THE COURT OF COMMON PLEAS
CUMBERLAND COUNTY, PENNA.
Plaintiff
.
.
.
.
v.
: HO. 15-1710 CIVIL TBRK
.
.
Ball IHSURAHCI IXCHAHGI,
Defendant
.
.
: JURY TRIAL DEMANDED
MOTION POR SANCTIONS
AND NOW, comes Defendant, Erie Insurance Exchange, by its
attorneys, GOldberg, Katzman & Shipman, P.c., who state:
1. This matter involves a claim for coverage for
property damage arising at two locations with the alleged
damage having occurred in January of 1994.
2. Defendant Erie served upon counsel for the Plaintiff
Interrogatories and a Request for Produc~ion of Documents in
May of 1996 which have not been answered by counsel. (See
Exhibit "A", "B" and "C").
3. Counsel for Defendant wrote to Plaintiff's counsel
back in June requesting that the Answers be filed and there
has been no response. (See Exhibit "D").
WHEREFORE, Defendant, Erie Insurance Exchange, would
request that the Court enter an Order of sanctions precluding
~
.-
.
the Plaintiff from presentinq evidence in support of their
claim and that the case be dismissed.
Respectfully submitted,
By:
GQ;OLDBBR~ DTZHMr , SBIl'HMr,
l~~;lt,,__
Tomas E. Brenner, Esquire
Attorney I.D. No. 32085
320 Market street
Strawberry square
P.O. Box 1268
Harrisburq, PA 17108-1268
(717) 234-4161
P.c.
Attorneys for Defendant,
Erie Insurance Exchanqe
DATED: 1,/o-n
2
....:
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.
Thamu B. an..... IIoquIn
I.D, No. 320U
GOLDBERG, KATZMAN II S111J'MAN. r.c.
320 Marbla_
r.o, 10&126'
Ha_q, rA 17101-126.
AnomlY rar Der.ndlnl
WILLIAM GOETZ,
IN THE COURT OF COMMON PLEAS
CUMBERLAND COUNTY, PENNA.
NO. 95-6790 CIVIL TERN
Plaintiff
v.
ERIE INSURANCE EXCHANGE,
ERIE INSURANCE GROUP,
Defendants
JURY TRIAL DEMANDED
INTERROGATORIES 01' 'l'BE DEI'ENDANT,
BRIE INSURANCE BXCHANGB
POR ANSWER BY THB PLAINTIPP
TO: Roger J. Harrington, Esquire
O'Brien and O'Brien Associates
1260 SUburban station Building
Philadelphia, PA 19103
Attorney for Plaintiff
PLEASE TAKE NOTICE that you are hereby required, pursuant
to Pennsylvania RUles of civil Procedure No. 4001, ~~, to
serve upon the undersigned, within thirty (30) days after
service of this Notice, your Answers in writing under oath to
the fOllowing Interrogatories.
G7)G'i1 KATZMAN , SHIPMAN,
,. ~~~
By: -:;::t' Y
ThOmas-E. Brenner, Esqu re
Attorney I. D. No. 32085
320 Market Street
straWberry square
P.O. Box 1268
HarriSburg, PA 17108
(717) 234-4161
P.C.
Attorneys for Defendant,
Erie Insurance Exchange
DATED: ~ ~ I,),.q ~
,
--
"
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DBPXHXTXOHB AND XHBTRUCTXOHB
2
(A) Whenever the term "document" is used herein, it
includes (whether or not specifically called for) all printed,
typewritten, handwritten, graphic or racorded matter, however
produced or reproduced and however formal or informal.
(B) Whenever you are asked to "identify" a docWllent, the
following information should be given as to each docWllent of
which you are aware, whether or not you have possession,
custody or control thereof:
(1) The nature of the docWllent (~, letter,
memorandum, computer print-out, minutes, resolution, tape
recording, etc.);
(2) Its date (or if it bears no date, the date when
it was prepared);
(3) The name, address, employer and position of the
signer or signers (or if there is no signer, of the
person who prepared it);
(4) The name, address, employer and position of the
person, if any, to whom the document was sent;
(5) If you have possession, custody or control of
the document, the location and designation of the place
or file in which it is contained, and the name, address
and position of the person having custody of the
document;
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(6) If you do not have possession, custody or
control of the document, the present location thereof and
the name and address of the organization having
possession, custody or control thereof; and
(7) A brief statement of the subject matter of such
document.
(e) Whenever you are asked to "identify" an oral
communication, the following information should be given as to
each oral communication of which you are aware, whether or not
you or others were present or participated therein:
(1) The means of communication (~, telephone,
personal conversation, etc.);
(2) Where it took place;
(3) Its date;
(4) The names, addresses, employers and positions
(a) of all persons who participated in the communication;
and (b) of all other persons who were present during or
who overheard that communication;
(5) The substance of who said what to whom and the
order in which it was said; and
(6) Whether that communication or any part thereof
is recorded, described or referred to in any document
(however informal) and, if so, an identification of such
document in the manner indicated above.
3
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(D) If you claim that the subject matter of a document
or oral communication is privileqed, you need not set forth
the brief statement of the subject matter of the document, or
the substance of the oral communication called for above. You
shall, however, otherwise "identify" such document or oral
communication and shall state each qround on which you claim
that such document or oral communication is privileqed.
(E) Whenever you are asked to "identify" a person, the
followinq information should be qiven:
(1) The name, present address and present employer
and position of the person; and
(2) Whether the person has qiven testimony by way
of deposition or otherwise in any proceedinq related to
the present proceedinq and/or whether that person has
qiven a statement whether oral, written, or otherwise,
and if so, the title and nature of any such proceedinq,
the date of the testimony, whether you have a copy of the
transcript thereof, the name of the person to whom the
statement was qiven, where the statement is presently
located if written or otherwise transcribed, and the
present location of such transcript or statement if not
in your possession.
(F) The term "you" shall be deemed to mean and refer to
the party to whom these Interroqatories have been propounded
for answer and shall also be deemed to refer to, but shall not
4
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be limited to, your attorneys, consultants, sureties,
indemnitors, insurers, investigators, and any other agents
insofar as the material requested herein is not privileged.
(G) The word "incident" shall be deemed to mean and
refer to the incident as alleged to have occurred and as set
forth in your complaint.
These Interrogatories shall be deemed to be continuing
Interrogatories. Between the time of your answers to said
Interrogatories and the time of trial, if you or anyone acting
in your behalf learns the identity or whereabouts of other
witnesses not disclosed in your answers, or if you obtain or
learn of additional information requested herein, but not
supplied in your answers, then you shall promptly furnish a
supplemental answer under oath containing the same.
5
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Personal Identification:
1. state:
ANSWER:
a. Your full name and each other name which you have
used or by which you have been known; your date and
place of birth; your present residence address and
each other address and period of residence which you
have had durinq the past five (5) years;
b. Your Social Security number; and
c. Name of all spouses and the inclusive dates of your
marriaqe relationship as to each spouse named.
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2. state the date upon which you acquired the Hechanicsburg
property and the cost paid for same.
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3. Provide a summary of all repairs, modifications or
alterations made to the Hechanicsburg property from the
time of purchase until the time of this alleged loss in
January, 1994.
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4. state the date upon which you acquired the Dillsburg
property and the cost paid for same.
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5. Provide a summary of all repairs, modifications or
alterations made to the Dillsburg property from the time
of purchase until the time of this alleged loss in
January, 1994.
.
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Trial EXDert Witnesses:
6. state the names, business and residence addresses, and
employers of each person whom you will call as an expert
witness at the trial of this matter, includinq medical
witnesses identified with reqard to the issues of
liability (L) and damaqes (D), and with reqard to each
expert state:
a. The subject matter on which the expert is expected
to testify;
b. The substance of the facts and opinions to which the
expert is expected to testify;
c. A summary of the qrounds for each opinion;
d. Whether the facts and opinions to which the expert
is expected to testify are contained in any written
report, memorandum, or other document, and, if so,
identify the name and address of the present
custodian of said report, memorandum or other
document. (A copy of the expert report may be
attached in lieu of answerinq Interroqatory 5.)
ANSWER:
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Non-Exnert witnesses:
7. state the names, residence and business addresses, and
employers of each person whom you will call to testifY on
your behalf at the trial of this matter, and briefly
state the subject matter of their proposed testimony.
ANSWER:
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Exhibits:
8. Identify by date of preparation, description, and name of
person preparinq, all documents or other objects which
you will introduce as exhibits at the trial of this
matter, identified with reqard to the issues of liability
(L) and damaqes (D).
ANSWER:
.
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9. Describe in detail how the alleqed damaqe to the
Mechanicsburq property occurred includinq exact location,
time of loss.
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10. Describe in detail how the alleqed damaqe to the
Dillsburq property occurred includinq exact location,
time of loss.
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witnesses and Those with
Knowledae of the Incident:
11. Identify each person (by statinq the name, last known
home and business address) who:
a. Actually saw the incident;
b. Was present at or near the scene at the time of the
incident and witnessed it throuqh siqht or hearinq;
c. Has any knowledqe or information as to any facts
pertaininq to the circumstances and manner of the
happeninq of the incident, the physical conditions
existinq at the time of the incident or the nature
or extent of the injuries or damaqes sustained.
ANSWER:
.
-....
statements:
12. Do you or anyone acting on your behalf know or believe
that any written statement (as defined by the RUles of
Civil Procedure) or any oral statement concerning this
action or its subject matter has been given ~ or
obtained from any person?
If so, identify (by stating the name, last known home and
business address):
a. Each person who gave an oral statement and when,
where, and to whom it was made; and the substance of
each such statement;
b. Any person who has custOdy of any written statements
or those reduced to a writing or otherwise recorded.
ANSWER:
;-,-,,-
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Invsstiaations:
13. Do you or anyone acting on your behalf know or believe
that any investigations were conducted of the incident
which is the subject matter of this action?
If so, identify (by stating the name, last known home and
business addresses):
a. Each person and employer of each person who so
conducted investigations:
b. If different from the person identified in subpart a
above, the person who has custody of or possession
of any written notes, reports or other docUlllents
prepared during or as a result of the investigation.
ANSWER:
.
14. Have the damages alleged to the Mechanicsburg property
been repaired? If so, identify the person who made the
repairs and provide copies of any documentation showing
cost of repairs or supplies to make repairs.
_..
15. Have the damages alleged to the Dillsburg property been
repaired? If so, identify the person who made the
repairs and provide copies of any documentation showing
cost of repairs or supplies to make repairs.
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PROOF OF SERVICE OF INTERROGATORIES
I, Thomas E. Brenner, of the law firm of Goldberg,
Katzman & Shipman, P.C., attorneys for Defendant, Erie
Insurance Exchange, do hereby certify that I this date served
the original of said Interrogatories on the following
individual, by depositing the same in the United states Mail
at Harrisburg, Pennsylvania, postage prepaid and addressed to
the following:
Roger J. Harrington, Esquire
o'~rien and O'Brien Associates
1260 Suburban station Building
Philadelphia, PA 19103
Bi?l~JSLBIP""
-Thom~ E. Brenner, Esquire
Attorney I. O. No. 32085
320 Market street
Strawberry square
P.O. Box 1268
Harrisburg, PA 17108
(717) 234-4161
P.c.
Attorneys for Defendant,
Erie Insurance Exchange
DATED: t~15''l''
. flt.a1O (i)
11lamu II. .......,. 1IIqIIu.
I,D. No. '2OU
COLDBERG, 1CA'nMAH .. S1111'MAH, P,C.
'20 Marblllnl'
P.O. 10. 126.
Han\JbuIJ. PA 17101-126.
AtItIrN'v far Dtr.n.talll
WILLIAM GOETZ,
IN THE COURT OF COMMON PLEAS
9UMBERLAND COUNTY, PENNA.
plaintiff
v.
HO. 95-&790 CIVIL TEaK
.'
ERII IH8URAHCB EXCRAHGE,
ERII IH8URAHCB GROUP,
Defendants
JURY TRIAL DEMANDED
.
INTERROGATORIES 01' '.rill DBI'ElWAHT,
ERIE IH8URAHCB EXCBAHGI
POR ANSWER BY THE PLll.1:NTIPP - SET II
TO: Roger J. Harrington, Esquire
o'Brien and o'Brien Associates
1260 Suburban station Building
philadelphia, PA 19103
Attorney for plaintiff
PLEASE TAKE NOTICE that you are hereby required, pursuant
to pennsylvania Rules of civil Procedure No. 4001, At~, to
serve upon the undersigned, within thirty (30) days after
service of this Notice, your Answers in writing under oath to
the following Interrogatories.
GOLDBERG, KATZKAH , SBIPKAH, P.C.
BYCC~~.-,
Thomas E. Brenner, Esquire
Attorney I. D. No. 32085
320 Market Street
strawberry square
P.O. BoX 1268
HarriSburg, PA 17108
(717) 234-4161
Attorneys for Defendant,
Erie Insurance Exchange
DATED: 5-' -9.4
\
DB.IHITIONS ~ INSTRUCTIONS
(A) Whenever the term "document" is used herein, it
includes (whather or not specifically called for) all printed,
typewritten, handwritten, graphic or recorded matter, however
produced or reproduced and however formal or informal.
.
(B) Whenever you are asked to "identify" a docUlllent, the
following information should be given as to each document of
which you are aware, whether or not you have possession,
custody or control thereof:
(1) The nature of the document (~, letter,
memorandum, computer print-out, minutes, resolution, tape
recording, etc.);
(2) Its date (or if it bears no date, the date when
it was prepared);
(3) The name, address, employer and position of the
signer or signers (or if there is no signer, of the
person who prepared it);
(4) The name, address, employer and position of the
person, if any, to whom the document was sent;
(5) If you have possession, custody or control of
the document, the location and designation of the place
or file in which it is contained, and the name, address
and position of the person having custody of the
document;
2
(6) If you do not have possession, custody or
control of the document, the present location thereof and
the name and address of the organization having
possession, custody or control thereof; and
(7) A brief statement of the subject matter of such
"
document.
(C) Whenever you are asked to "identify" an oral
communication, the following information should be given as to
each oral communication of which you are aware, whether or not
you or others were present or participated therein:
(1) The means of communication (~, telephone,
personal conversation, etc.);
(2) Where it took place;
(3) Its date;
(4) The names, addresses, employers and positions
(a) of all persons who participated in the communication;
and (b) of all other persons who were present during or
who overheard that communication;
(5) The substance of who said what to whom and the
order in which it was said; and
(6) Whether that communication or any part thereof
is recorded, described or referred to in any document
(however informal) and, if so, an identification of such
document in the manner indicated above.
3
(D) If you claim that the subject matter of a document
or oral communication is privileged, you need not set forth
the brief statement of the subject matter of the document, or
the substance of the oral communication called for above. You
shall, however, otherwise "identify" such document or oral
communication and shall state each ground on which you claim
that such document or oral communication is privileged.
(E) Whenever you are asked to "identify" a person, the
following information should be given:
(1) The name, present address and present employer
and position of the person; and
(2) Whether the person has given testimony by way
of deposition or otherwise in any proceeding related to
the present proceeding and/or whether that person has
given a statement whether oral, written, or otherwise,
i
and if so, the title and nature of any such proceeding,
the date of the testimony, whether you have a copy of the
transcript thereof, the name of the person to whom the
statement was given, where the statement is presently
located if written or otherwise transcribed, and the
present location of such transcript or statement if not
in your possession.
(F) The term "you" shall be deemed to mean and refer to
the party to whom these Interrogatories have been propounded
for answer and shall also be deemed to refer to, but shall not
"
,
.
4
be limited to, your attorneys, consultants, sureties,
indemnitors, insurers, investigators, and any other agents
insofar as the material requested herein is not privileged.
(G) The word "incident" shall be deemed to mean and
refer to the incident as alleged to have occurred and as set
"
forth in your complaint.
These Interrogatories shall be deemed to be continuing
Interrogatories. Between the time of your answers to said
Interrogatories and the time of trial, if you or anyone acting
,
in your behalf learns the identity or whereabouts of other
witnesses not disclosed in your answers, or if you obtain or
learn of additional information requested herein, but not
supplied in your answers, then you shall promptly furnish a
supplemental answer under oath containing the same.
,
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1.
In paragraph 5 of the complaint it is alleged that
DefencSant Erie has "frivolouslY and without
reasonable founcSation refused to fully and fairlY
compensate plaintiff for this lOSS". Set forth the
factS that will be presented as evidence to support
this averment.
JUfSWERI
"
.
2. In paragraph 11 of the complaint it is alleged that
Defendant Erie has "frivolouslY and without
reasonable foundation refused to fully and fairlY
compensate plaintiff for this lOSS". set forth the
factS that will be presented as evidence to support
this averment.
i\NBWERI
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1:
PRoor or SERVICB OF IHTBRROGATORIBS
I, Thomas E. Brenner, of the law firm of Goldberg,
Katzman & Shipman, P.c., attorneys for Defendant, Erie
Insurance Exchange, do hereby certify that I this date served
the original of said Interrogatories on the following
individual, by depositing the same in the united States Mail
at Harrisburg, pennsylvania, postage prepaid and addressed to
the following:
Roger J. Harrington, Esquire
O'Brien and O'Brien Associates
1260 Suburban station Building
Philadelphia, PA 19103
GOLDBERG, KATZMAN , SHIPMAN, P.C.
By: /h~!JJ,---
\~n:m~. Brenner, Esquire
Attorney I. o. No. 32085
320 Market street
strawberry square
P.O. Box 1268
Harrisburg, PA 17108
(717) 234-4161
Attorneys for Defendant,
Erie Insurance Exchange
DATED: 5 -? -'i''-
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I.D. No. 31015
COLD'PC, KATZMAN .. S1I1I'MAH, P.C.
320 M.....I._
P.O. loa 126.
HanllbulJ, PA 17101-1261
AnlHMY for o.f.ndanl
WILLIAM GOBTII,
.
.
Plaintiff :
IN THE COURT OF COMMON PLEAS
CUMBERLAND COUNTY, PENNA.
NO. g5-67g0 CIVIL TERN
v.
ERIE INSURANCE EXCHANGE,
ERIE INSURANCE GROUP,
Defendants
JURY TRIAL DEMANDED
REOUEST FOR PRODUCTION OF DOCUMENTS
TO: Roger J. Harrington, Esquire
o'Brien and O'Brien Associates
1260 Suburban Station Building
Philadelphia, PA 19103
Attorney for Plaintiff
Pursuant to Pa.R.C.P. No. 4009, as amended, the
Defendant, Erie Insurance Exchange, by its attorneys,
Goldberg, Katzman & Shipman, P.C., requests you to produce
copies of the following documents, at its expense, within
thirty (30) days of service of this Request.
INSTRUCTIONS
If you object to the production of any dccument on the
grounds that the attorney-client, attorney work-product or
any other privilege is applicable thereto, you shall, with
respect to that document:
(a) State its date;
, "
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. II .
(b) Identify its author;
(c) Identify each person from whom the document was
received.
(d) IdentifY each person who received it;
(e) Identify each person from whom the document was
received;
(f) state the present location of the document and all
copies thereof;
(g) Identify each person who has ever had possession,
custody or control of it or a copy thereof; and
(h) provide sufficient information concerning the
document and the circumstances thereof to explain the c~aim
of privilege and to permit the adjUdication of the propriety
of that claim.
As referred to herein, "document" includes written,
printed, typed, recorded, or graphic matter, however
produced or reproduced, including correspondence, te~egrams,
other written communications, data processing storage units,
tapes, contracts, agreements, notes, memoranda, analyses,
projections, indices, work papers, studies, reports,
surveys, diaries, calendars, films, photographs, diagrams,
drawings, minutes of meetings, or any other writing
(including copies of any of the foregoing) regard~ess of
whether you, your former or present counsel, agents,
2
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employees, officers, insurers, or any other person acting on
your behalf, are now in possession, custody, or control.
3
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DOCUMENTS REOUESTED
1. All statements, signed statements, transcripts of
recorded statements or interviews of any person or witness
relating to, referring to or describing any of the events
described in the Complaint.
2. All expert opinions, reports, summaries or other
writings in your custody or control or in the custody or
control of your attorney or insurers, which relate to the
subject matter of this litigation.
3. All documents, correspondence or other drawings,
sketches, diagrams, or writings in your custody or control
or in the custody or control of your, attorney or insurers,
which relate to the subject matter of this litigation.
4. All documents prepared by you, or by any insurer,
representative, agent, or anyone acting on your behalf,
except your attorney(s), during the investigation of the
incident in question or any of the events or allegations
described in the Complaint. Such documents shall include
any documents made or prepared up through the present time,
with the exclusion of the mental impressions, conclusions,
4
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or the opinions respecting the value or merit of the claim
or defense or respecting strategy or tactics.
5. All photographs of any item or thing involved in
this litigation.
6. All statements as defined within pa,R.C.P. No,
4003.4.
7. All statements and/or transcripts of interviews of
fact witnesses obtained in this matter.
8. All documents identified in your Answers to any
set of Interrogatories propounded by any party in this
litigation.
9. All documents prepared by you or by any
representative agent, contractor or other entity setting
.
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forth estimates of repair or cost of actual repair for the
Mechanicsburg and Dillsburg properties.
Respectfully submitted,
G~ ltATZKAlf , SHIPMAN, P.c.
BY\. jJ~
~homas E. Brenner, Esquire
Attorney I. D. No. 32085
320 Market street
strawberry square
P. O. BOX 1268
Harrisburg, PA 17108-1268
(717) 234-4161
Attorneys for Defendant,
Erie Insurance Exchange
DATED: ~. (:: .~b
6
, ,. I
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CBRTIPXCATB OP SERVICB
I hereby certifY that I am this day serving a copy of the
foregoing document upon the person(s) and in the manner
indicated below, which service satisfies the requirements of
the pennsylvania Rules of civil procedure, by depositing a
copy of same in the United states Mail at Harrisburg,
Pennsylvania, with first-class postage prepaid and addressed
as follows:
Roger J. Harrington, Esquire
o'Brien and o'Brien Associates
1260 Suburban station Building
Philadelphia, PA 19103
KATZKAN , SHXPKAN, P.C.
b~~
Thomas E. Brenner, Esqu re
Attorney I. D. No. 32085
320 Market Street
strawberry square
P.O. Box 1268
Harrisburg, PA 17108-1268
(717) 234-4161
Attorneys for Defendants
DATED: Lf-15' '16
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LAW OPPICSS
G01.DBBRG. KATZMAN Be SHIPMAN, p.e.
RONALD N KATZMAH
HAA"Y'OOLQKAO
,. Let ....'NAH
PAUL .I. EIIIOIIIO
NEil. HENDERIHO'
.I. .lAY CoonR
'HOMA'L MENNE"
~A.ITATLEA
APRIL L. ITRANO.KUlA"
OUY H. IROOK'
..IU'UION oJ. IHIPMAN
KARtH .. 'EUCK'I'ENIERotR
..IOU" ..I. RUllO
ARNOLD I. KOOAN
MICHAn .I. CRoaNZI
EVAN oJ. KLINE. .
. DREW Po OAHNON
STEVEN L ~
0110 NA..BT IITIISBT
IITRAWBSRRY SQUABS
P.O. BOX 11100
BA..UlBURa, .SNNaYLVAN1A 17108'1111111
TJlLBPUONIl(717) 110+4101
PAX (717) 1104.0808
June 28, 1996
Roger J. Harrington, Esquire
o'Brien and o'Brien, Assooiates
1260 Suburban Station Building
Philadelphia, PA 19103
Re: Goetz v. Erie Insurance
. . I .
AR'HUN L. ooc.D8PO
or CGUNIa.
tcRlHEY OP'ncE:
el:l WElt CHOCOLATE AVENUE
P'. O. lOX eell
tCJItatCy, P'" 110:1:1
1717111:1:1.4048
CARUILEOI',teE:
11:1 WElt P'QMFRET I'R"T
CARUILE,'", 1701:1
171711411.0187
YORICOI"ICE:
1 wel' MARKET IT"CCT
YORK. p", 17401
1717184:1.'811
ICCAM.POND TO
HARRlUURO 0"1Ce1
Dear Roger:
I note it has been nearly seven weeks since we forwarded
Interrogatories and a Request for Production of Documents to
you. We must have answers to those requests on or before July
10th. If we do not have same I will have no recourse but to
seek sanctions with the Court.
cG:t
TEB/krb
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, . . .
. .. .
CBRTIPICATB OP SERVICB
I hereby certify that I am this day serving a copy of the
foregoing document upon the person(s) and in the manner
indicated below, which service satisfies the requirements of
the Pennsylvania Rules of civil Procedure, by depositing a
copy of same in the United states Mail at Harrisburg,
Pennsylvania, with first-class postage prepaid and addressed
as follows:
Roger J. Harrington, Esquire
O'Bri.n and O'Bri.n A..ociat..
1260 Suburban station Building
Philadelphia, PA 19103
By:
GOLDBERG, KATZMAN , SHIPMAN, P.C.
Cl~~~
Thomas E. Brenner, Esquire
Attorney I. D. No. 32085
320 Market street
strawberry Square
P.O. Box 1268
Harrisburg, PA 17108-1268
(717) 234-4161
Attorneys for Defendants
DATED: 7 '/~'9b
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ERIE INSURANCE
EXCH~NGE
NO. 95.6790 CIVIL
O'BRIEN AND O'BRIEN ASSOCIATES
By: ROGER J. HARRINGTON, ESQUIRE
IDENnFICATION NO. 09885
1280 ONE PENN CENTER
PHILADELPHIA, PA 19103
{~nI587.7381
WILLIAM GOETZ
ATTORNEY FOR PLAINTIFF(S)
va.
IN THE CUMBERLAND
COUNTY COURT OF
COMMON PLEAS
PLAINTIFF'S REPLY TO NEW MATTER OF
DEFENDANT ERIE INSURANCE EXCHANGE
12. Denied. The insurance policy speaks for itself.
13. Denied. Plaintiff specifically denies that the damages claimed in
either loss are caused by or consist of deterioration or depreciation, settling,
cracking, shrinking, bulging or expansion of materials. Plaintiff further
specifically denies that the damage pre-existed the date of loss of January 17,
1994 and strict proof thereof is demanded at the time of trial. By way of further
reply, plaintiff avers that the loss was indeed caused by the weight of ice and
snow and proof to the contrary is demanded at the time of trial.
14. Denied. Plaintiff specifically denies that the claims were investigated,
evaluated or denied in good faith and strict proof thereof is demanded at time of
trial. By way of further reply, said letters are in writing and speak for themselves.
15. Denied as an incorrect legal conclusion to which no reply is required.
WHEREFORE, plaintiff prays that the new matter of defendant be stricken
and judgment be entered In favor of plaintiff ond against defendant together with
damages, Interest, costs and attorneys fees.
Respectfully submitted,
. '
'0
VERIFICATION
William B. Goetz hereby stBtes that he is duly BUlhorized to take this verification
and that the fllCts as set forth in the foregoing document are true and correct to the best of
his pel'lOnal knowledge.
These stBtements are made to the penalties of 18 Pa. C.SA Section 4904 relating
to unsworn falsifications to authorities.
~.
William B. Goetz
DATED: 6-/. 1'6
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HARRINGTON & CALDWELL, P.C.
By: ROGER J. HARRINGTON, ESQUIRE A TIORNEY FOR PLAINTIFF
IDENTIFICATION NUMBER: 09885
ROBERT MORRIS BUILDING
looN.17THSTREET,15THFLOOR
PHILADELPHIA, PA 19103
(215) 751-1135
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WILLIAM GOETZ, IN THE COURT OF COMMON PLEAS
Plaintiff CUMBERLAND COUNTY
v. NO. 95-6790 CIVIL TERM
ERIE INSURANCE EXCHANGE,:
Defendant
PRAECIPE TO CHANGE ADDRESS OF PLAINTIFF'S COUNSEL
TO THE PROTHONOTARY:
Please note that plaintiffs counsel's new address is as follows: Roger J.
Harrington, Esquire, Harrington & Caldwell, P C., Robert Morris Building, 100 N.
17thStreet, 15th Floor, Philadelphia, PA 19103.
Please note the court's file accordingly. Thank you.
Respectfully submitted,
Date: '7 - ]1-C(~
ROGER J. TON
Attorney fa Plaintiff
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PRAECIPE FOR LISTING CASE FOR TRIAL
(Must be typewritten and submitted in duplicate)
'ro 'lllE Prom:N:11'ARY OF ClJolBERI'.Am COUI'll'Y
Please list the following caset
,
(Check one)
( X) for JURY trial at the next term of civil court.
( ) for trial without a jury.
CAPl'ION OF CASE
(entire caption nust be stated in full)
(check one)
(l() Civil J\ction - Law
) Appeal fran Arbitration
William Goetz
(other)
(Plaintiff)
VB.
Erie Insurance
Exchange
The trial list will be called on 1-5-99
and
Trials CCXJI1'ence on
2-l-99
(Defendant)
Pretrials will be held on l-13-99
(Briefs are due 5 days before pretrials.)
(The party listing this case for trial shall
provide forthwith a copy of the praecipe to
all counsel, pursuant to local Rule 2l4.l.)
vs.
No. 95-6790Civil
19
Indicate the attomey who will try case for the party who files this praecipe.
Roger J. Harrington, Esquire
Indicate trial counsel for other parties if knOWIlt
Thomas E. Brenner, Esquire
This case is ready for trial.
Signe~ ~
Print Narret Roger J. Harrington, Esquire
Datet
lO-l5-98
Plaintiff
Attomey fort
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PRAECIPE FOR LISTING CASE FOR ARGUMENT
(R1st be typewritten and subnitted in ....It'1 i"-llte)
TO THE PROTHONOTARY OF CUMBERLAND COUNTY:
Please list the within IlIlItter for the next ~t 0Jurt.
---------------------------------------------------------------------------------------
CAPTION OF CASE
(entire caption IIUIt be stated in full)
WILLIAM GOETZ
(Plaintiff)
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VB.
ERIE IIIS1J1WICE EXCBAIlCE.
ERIE IIIS1J1WICE GROUP
(Defendant)
No. 95-6790 Civil
19
1. State matter to be ~ (i.e., plaintiff's motion for new trial, defendant's
demJrrer to CXI'lpl.aint, etc.):
Defendant's Motion for Partial Summary Judgment
2. Identify ccunsel who will ~ case:
(a) for plaintiff: Roger Harrington. Esquire
l\ddress: Harrington & Caldwell, P.C.
100 II. 17th St.. 15th Fl.
Philadelphia. PA 19103
(b) for defendant: TItOIlBS E. Brenner. Esquire
l\ddress: Goldberg, XatzlIBn & Ship1lBn. P.C.
PO Box 1268
Harrisburg. PA 17100-1268
3. I will notify all parties in writing within bIo days that this case hils
been listed for argunent.
4. Argunent 0Jurt Date:
December 9. 1998
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D3ted: Nov. 2. 1998
Attorney for Defendant
ThOmBS E. Brenner, Esquire
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1.0. No. 3201.l
OOLDBBRO, KATZMAN & SHIPMAN. P.C.
310 Marbl S_
P.O. 10. 1161
HarriobulJ. PA 17101-126.
_, ror Dor.lllIanl
WILLIAM GOETZ,
Plaintiff
IN THE COURT OF COMMON PLEAS
CUMBERLAND COUNTY, PENNA.
NO. 95-6790 CIVIL TERM
v.
ERIE INSURANCE EXCHANGE
JURY TRIAL DEMANDED
Defendant
DEFENDANT. ERIE INSURANCE EXCHANGE'S
MOTION FOR PARTIAL SUMMARY JUDGMENT
AND NOW, comes Defendant, Erie Insurance Exchange, by its
attorneys, Goldberg, Katzman and Shipman, P.C., who states:
1. This matter arises from a claim for alleged storm
losses by Plaintiff at properties located near Dillsburg and
Mechanicsburg.
2. Erie has communicated a written denial of the claims
for each property after a thorough investigation of each claim.
(See Exhibits A and B).
3. Defendant Erie has had the claim of Plaintiff
evaluated by a construction expert and provided Plaintiff copies
of expert reports (see Exhibits C-E) setting forth the basis of
his determination that the damages presented were not related to
the claims of storm damage arising from ice and snow in January
1994.
.
I. _ .
4. Plaintiff in the Complaint in addition to seeking
recovery for the alleged cost repairs to the building have also
included at paragraphs 6 and 11 of the Complaint an allegation
that Erie has acted unreasonably in refusing to pay the claims
and claims damages pursuant to 42 Pa. C.S. 5837l, commonly known
as Bad Faith.
5. Erie asserts that the claim of the Plaintiff has been
thoroughly investigated by Erie claims representative, Gary
Rini, and the denial of the claim was based upon the building
expert retained as a consultant to review the Plaintiff's
claims.
6. The Plaintiff's claim for damages under 42 Pa. C.S.
58371 is not supported by the facts of this case and therefore
Defendant Erie would request the Court grant this Motion for
Partial Summary Judgment dismissing the claims in paragraphs 6
and 11 of the Plaintiff's Complaint.
2
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WHEREFORE, Defendant, Erie Insurance Exchange, requests
that their Motion for Partial Summary Judgment be granted
dismissing paragraphs 6 and 11 of the Complaint.
Respectfully submitted,
GOLDBERG, KATZMAN' SHIPMAN, P.C.
By:
a~7;&~
Thomas E. Brenner, Esquire
Attorney I.D. No. 32085
P.O. Box 1268
Harrisburg, PA 17108-1268
(717) 234-4161
Attorneys for Defendant,
Erie Insurance Exchange
DATED: \\ I?, I q~
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Hr. William B. Goetz
326 South Tenth Street
Lemoyne, PA 17043-1798
January 12, 1995
Our Claim No.:
. Our Insured:
Date of Loss:
0101701335~
William B. Goetz
1/17/94
Dear Mr. Goetz:
We have reviewed the facts of your claim. We understand that you
believe the damage to your property was caused by the weight of
ice, snow or sleet during the early months of 1994.
We wish to be fair in handling your claim, but after having
inspected your property and reviewing the attached report prepared
by Eugene J. AUfiero & Associates Inc., we believe the damage to
your property was not caused by the weight of the ice storms of
last winter.
Our decision on this case was based upon the following
observations:
1. Some of the damage viewed had occurred prior to last winter's
storms. ,
2. Some of the damage was caused by deterioration or
depreciation.
3. The remaining damage was not caused by the weight of ice and
snow.
Sincerely,
Gary Rini
Property Claims Specialist
P.O. Box 954
Camp Hill, PA 17011
(717) 975-2729
GR:bjw
EnClosure/Engineer's Report
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l/Cc: File
cc: Mr. Daniel Soboloski
Assured Adjustment Associates
931 Huntingdon Pike
Huntingdon Valley, PA 19006
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~ The ERIE Is Above Allin SERViCE. '. Sinco 1925
ERIE.
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Mr. William E. Goetz
326 South Tenth Street
Lemoyne, PA 17043-1798
January 13, 1995
Our Claim No.:
Our Insured:
Date of Loss:
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010170125569
William E. Goetz
1/17/?4
Dear Mr. Goetz:
We have reviewed the facts of your claim. As you probably know,
our obligation as an insurer is to pay for direct physical loss to
property caused by perils we insure against, except if the loss is
caused directly or indirectly by one or more of the excl9sions
listeq in your policy. We must be gijided by all information
available to us, including photographs taken by Erie Insurance
Representatives, as well as the attached report prepared by
Eugene J. AUfiero & Associates, Inc. following a detailed site
inspection.
We wish to be fair in handling your claim, but the facts indicate
that damage to your property has been caused by events that are
specifically excluded in your policy. For this reason, we must
respectfully decline payment of your claim.
Our decision on this case was based upon our inspection of your
property and our review of the attached engineer's report, both of
which indicate that the damage to your property has been caused by
one or more of the following events:
1. By deterioration or depreciation.
2. By wear and tear, rust or corrosion, mold or rotting.
3. By latent or hidden defect.
4. By vermin or insects.
(continued... )
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~ ERIE INSURANCE GROUP .
~ T.... ERIE Is Alxwa Allin SEnvICE. . Sinca 1925
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Page 2 - 010170125569
sincerely,
5. By faulty, inadequate, or defective:
a) Design, development of specification, workmanship,
construction.
b) Materials used in construction, or;
c) Maintenance. .
GR/ta
E~osure/Engineer's Report
~c:file
cc: Mr. Daniel Soboloski
Assured Adjustment Associates
931 Huntingdon Pike
Huntingdon Valley, PA 19006
Enclosure
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~ ERIE INSURANCE GnOUp .
~ ill!' ERIE IS ^tXl\'~ AllIn Sr:nVICEfl! . ~lIlC(~ Hl2f.
r-mr-
Gary Rini
Property Claims Specialist
P.O. Box 954
Camp Hill, PA 17011
(717) 975-2729
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HX~EN'f J. AUFIERO & ASSOCIATES, INC, CONSULTANTS. STRUCTURAL '. AR911TECTURAL
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2120 MARKET STREET. CAMP HILl, PENNSYLVANIA 17011~709 . (717) 761.6462
EUGENE J, AUFIERO - P,E,
RICHARD B, WILLIAMS - P,E,
December 21, 1994
.
Mr. GaIy Rini, Adjuster
Erie Insurance Company
P. O. Box 954
ClII1lp Hill, PA 17001
RE: #94260
Rental Property at
6599 Culisle Pike
Mcchanicsburg, PA 17055
Water Damage
Investigate to Detennine Cause.
Dear Mr. Rini:
,
1 visited the site on December 7, 1994. The owner, Mr. Willilll1l Goetz, was at the site and
provided access to the interior and exterior of the house. He identified certain damage which, in
his opinion, was caused by the snow and ice deposited by stonns in the 1993-94 winter season.
Oh~ervatinn~. r.omment~ Rnd r.onrlll~lnn~
(Orientation references made while viewing structure from front. Front of structure is side
facing street.)
1 . Left front bedroom on second floor.
Extremely small stain spots (about the size ofa 25 cent piece) noted at the head of two
windows in the front wall. Stain in left front comer on paint over wallpaper.
The roof eaves and the attic floor above these areas were inspected, There are water
stains on the wood roof deck and on the attic floor along the eaves. The stains are very dark and
ue covered with dust and cobwebs, Contents on this area of the attic floor were not water
stained. These stains arc not of recent fonnation.
The small stains on the window heads arc also dark and do not appear to be of recent
fonnalion. They are isolaled spots located on the bottom inside comer of the window stop with
no trace of water stain leading to these SpOIS, It appears that these stains are from a source other
than water or melting snow on the roof surface.
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There is a small stain on the ceiling near the center of the room. There was no sign of
a leak in the roof (lr allic floor above. It is not certain that this stain is caused by water. The stain
does not appear to be newly formed. This stain may be from a roofleak which occurred some
time before the present shingle roof was installed many years ago,
It is the writer's opinion that conditions observed at the sile do not provide evidence
tha,l ice and snow of the 1993.94 winter storms are the cause of the stains.
2 . Middle bedroom on left side of second /loor.
The ceiling paint is peeling. The attic /loor above and the roof deck above show no
signs of recent leaks. The contents on the attic /loor immediately above this area are not water
stained. The damage does not appear to be of recent formation.
After observing conditions, the writer is of the opinion that the damage is from an old
event which may have been caused by a roofleak in the previous roofing material.
3 - Rear bedroom on second /loor.
The ceiling is a fibrous tile fastened to furring strips. The room is an addition on the
rear of the original two story house. ,
Very dark water stains were noted on the ceiling tile in the closet. The stain area on
the tile in the room is close to the closet. This stain is somewhat lighter than the stain in the
closet. The stained tile in the room was repaired. Nails were driven into the edges ofthe tile.
The nail heads were painted. This same nailing was observed at one or two other locations in the
room,
The ridge of the roof over this area intersects the gabled roof on the original two story
house at a point just above the eaves of the original gable roof. There is serious deterioration of
the shingles on the eaves of the roof over the original two story house. Leaks in this area would
be at the right location to cause the staining on the closet ceiling and the nearby stain on the room
ceiling.
The writer cannot be certain of the cause for these stains but the deteriorated condition
ofthe shingles on the original roof, and the /lashing between the ridge over the addition and the
original roof, are the probable cause.
4. Family room addition at rear of first floor.
There are several stains on the fiber ceiling tile, The owner stated that new tile were
recently installed in the area near Ihe fireplace at Ihe rear of this room. Stains were noted on the
tile in other areas of the celling. These stained areas were painted but they were visible through
Ihe thin paint cover.
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A low slope shed roof covers this room. The rooling is mineral surfaced roll rooling.
There are many ridge buckles on this roof. In some instances, the rooling at the top of the ridge
has broken and rainwater, etc, can penetrate,
The left and right side edges of this roofis surface nailed, The nail heads arc exposed
and rusted. '
.
The flashing between the roll rooling and the wall of the two story addition toward the
front has been recently repaired by adding a coating of bituminous material along the edge of the
roll roofing. Nail heads have popped through the bituminous material. The wall siding makes
contact with the roof surface. There is no evidence of base flashing at this intersection.
The fireplace chimney stack projects through the roof surface at the low end of the
roof along the rear wall. The top of the metal base flashing is unprotected. There is no eap
flashing to cover the top edge of the base flashing, Attempts were made to cover this gap with
bituminous cement but the gaps It the top ofthe base flashing have re-formed.
There are many construction deficiencies on this roofing and flashing. The writer is of
the opinion that the leaks and ceiling damage were caused by the holes in the roofing and the
deficient flashings, and that weight of ice and snow were not the cause of these leaks.
,
5 - Shingles on rear slope of gable roof over original house.
These shingles are very old and exhibit all of the symptoms of their advanced age.
There is cupping, loss of section, shrinking, cracking, etc. Weight of snow and ice did not cause
the deterioration.
Encl.
copy to tile
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EUGENE J. AUFIERO & ASSOCIATES, INC. CONSULTANTS . STRUCTURAL. ARCHITECTURAL
2120 MARKET STREET' CAMP HILI. PENNSYLVANIA 17011"7011' (717) 701-8482
EUGENE J. AUFIERO - P.E.
RICHARO B. WlLl.lAMS - P.E.
December 29, 1994
'.
Mr. Gary lUnl, Adjuster
Erio Insurance Company
P. O. Box 954
Camp Hill, PA 17001
RE: #94248
Mr. Wi11iam Goetz - Motel
13i Glcnwood Road
York, PA 17019
StJUcturo Damage
Determine Extent ofDlU\1Ige Cluscd by Weight ofIce and Snow.
Dear Mr. Rim:
I visited the site on December 7, 1994. The caretaker of the motel provided access to the
structure.
O~servRtion8. Comments Rnd,Cnnclllsions
-1-
I - Roof ov..mang over long cnnrinllollll porch at front I!IIt1'lInce to motel roomll
The rooCis fruned with wood trussed rafters spaced at 24 inches 0.0. The cnd bearing
of the truss is supported on a system of wood beams and wood columns. The columns bear on
top of the oxtcrlor edge of the porch slab. The slope of the roof above the trussed rafters is 3M on
12M. At the cnd bearing of the tJUsscd rafters, a man""rd roofwith a slope of600 with the
horizontal continues downward for a distance of about thrco feet. The outward projection of the
oxtcri.or edge of the mansard roofis about two feet beyond the wood columns. The soffit
between the edge ofmansard and the columns was originally covered with gypsum wallboard. At
a later time, a partially perforated vinyl soffit material was insta1\ed to hide the deteriorated face of
the gypsum board. The pcrfurations are useless and do not function because the old gypsum
board soffit docs not have any vent holes.
The porch ceiling is nwed dircctIy to the bottom chord of the trussed roofraftcrs.
This ceiling is about two feet higher than the soffit at the bottom edge of the manum root: The
porch ceiling is constructed of two differcnt types of gypsum board. In one area, the board was
labeled moisture rCllistant (MR), This type of board is designed for interior applications. It
cannot be instaUed on ceilings because it sags. The installation on an exterior ceiling is a design
and/or construction deficiency. The board has sagged in this installation.
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The second type of ceiling material is an interior gypsum board. The top paper surface
did not appear to be asphalt treated. This installation requires a special exterior gypsum ceiling
board with an Isphalt treated paper on the top side. The paper tape on tho joints has peeled ofl'in
loog strips and thero is no evidence of tape or compound remaining. This ceiling requires a
setting type compound which cures by developing heat and not by evaporation. It is doubtful that
I setting compound was ~ on this installation.
The attic spice Ibove the porch ceiling was accessed. The top of the gypsum board is
water stained aloog the outboard edge, This is directly under the transition from the shallow
slopo of the main roof and the stccp mansard roof section. The water stains run down tho side of
the vertical gypsum board reveal bctwccn the porch ceiling and the soffit under tho mansard root:
The original gypsum board soffit under the vinyl soffit is also water stained.
The shingles at the abrupt change in pitch from tho shallow slope on tho main roof to
the stccply sloped m.n..rd arc deteriorated, broken or ml.";ng Tho shingles at this line of slope
transition do not comply with recommendations provided by many shinglo manufacturers. The
recommended procedure is to terminato the bottom edgo of the shingle on the upper slopo at tho
transition line bctwccn slopes and to seal this shinglo along its bottom edge. At this installation,
the bottom edge extended beyond the transition line. Tho projection ends of the shingles were
then bent to conform to the change in slope. Where repairs were attempted, they have been
improperly made. The repair deficiencies include, excessive exposure to weather, exposed nail
heads, nail pop ups, broken shingles, etc, The repair shingles wero not pre-formed to
accommodate the change in slope. The roofleaks arc concentrated along the transition line
b~ the two different slopes.
The leaks have been occurring over a long period of time which is certain to predate
the SIIOWS of the 1993.94 winter season. There is strong evidence to suggest that repairs were
made to damage that occurred prior to the 1993.94 winter season, because of the two different
types of gypsum board found in this inst.lI.tion. A few very old nests (birds, squir!:els, etc.) were
found above the ceiling in the area where sags had produced openings for cotty of wild life.
There arc no vents to the attic space in tho soffit of the mansard or in the porch ceiling,
The ridgo veilt on the main roofis blocked. This condition was observed through an opening at
the end of I ridge vent. There was no light penetration observed from the ridge area while in the
attic space.
Low pitch roofs require special installation which includes double layers of under-
Iayment, full cementing of the underlayment at certain locations on the root; etc. The leaks at tho
transition between the roof slopes suggest that these special installation procedures were not
fonowed.
It is the writel's opinion, based on site conditions observcd, that the damage to the
porch ceiling and adjacent soffit is from shingle deterioration due to aging, shingle cracking
caused by stress from the bending required at the change of roofs lope aod the probable failure to
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comply with low slope In<l,lI.lion procedures. There is BIso the matter of Improper repairs to
shingles at this same location. Thero Is no evidenco that tho weight oflco IDd snow cauacd this
damage.
2- Unit #1
Minor discoloration in intersection betwccn room ceiling IDd exterior front wail The
attic space above this area was inspected. Thero arc 110 rooflcaks abovo this area. Tho attic
space is not vented IDd the wood plate at the top of this wall may absorb molsturo from time to
time.
This discoloration is not caused by weight ofico ID snow.
3 - Unit #3
Taped joints in haIIwayat ceiling to partition intersections lIJ'e beginning to tcIcgraph
through paint This condition is common in stIUcturcs of this type, IDd is attributable to such
things as aging, InstaDation procedures, ole,
It is the writer's opinion thst this condition is not cauacd by weight of/co IDd snow.
4 - Unit #4
There is a very sma1l crack in the taped joint at the interscction.ofthe ceilinglDd ID
interior partition. These conditions lIJ'e common to this typo of constIUction and may be cauacd
by shrinkage stresses, moVClDCllt cauacd by temperature changcs, normal scttlCJDCllts, etc.
It is the writer's opinion that this condition is not caused by weight of/ce and snow.
s - Unit~ #8,9, 10, II and 12
Minor crac1dng in taped jointa at intersection of ceiling IDd walls. Minor craoIdng in
taped joint in wall and ceiling. Old ceiling crack and old repair to that crack.
All of these conditions arc common occurrences in this type ofcoDStnlction and may
be cauacd by shrinkage stresses, movement resulting from temperature changcs, normal
settlements, etc. The repaired ceiling crack is old and appears to predate the winter of 1993-94.
snow.
It is the writer's opinion that these conditions were not cauacd by weight of/co and
6 - Building #2 with u~ed filrnihlre store room and ~llperintendent'R apartment
Leaks on interior life against exterior walls which lIJ'e under the shal]l slope transition
between the main roof and the mansard rooC There are missing shingles at various locations
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.'
aloDg this slope transition. There arc also some poorly made repairs. There arc manr instances
where nail heads arc exposed. There arc some instances of excessive exposure to weather and
insufficient head lap.
There is ODe large area where shingles have bccn damaged. It appears that they were
cut by a shovel or other object which may have bccn used to remove snow from the root: Several
shingles were sheared off and the tar piper undcr1aymcnt is exposed to weather.
There is evidencc of old leaks in the used tiuniturc store room at the end furthest from
the apartment. Some old leaks oCCll1TCd at the flashings where the electric service pole pierces
the root: Close to this pole penctntion, there is an area of old water damage to the ceiling. The
ceiling is sagged in this area.
The writer is of the OpiniOD that these old leaks were not caused by weight oficc and
snow from the past winter storms.
Respectfully submitted,
~EUGENEJ' A <} to'\SSOCIA~' INC.
V -"-
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Eug J. Aufi ro, P.E.
EJAljg
End
copy to file
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EUGENE ,. AUFIERO & ASSOCIATES, INC. CONSULTANTS' STRUCTURAL . ARCHITECTURAL
FEDERAl I,D, IlHlaS702
IlO9 BRIDGE STREET' NEW CUMaERL~D. PENNSYlVANIA 17070,1172 .\7171774.9412 . 17171 774,94141FAXI
RICHARD B, WILLIAMS_ P,E.
DAVID E, AUFIERO - p,[.
EUGENE I. AUFIERO - P,E.
June II. 19911
11IDmas E. Drenner, Esqnire
Goldberg, KaIZlnan & Shipman, P.C.
320 Market Slreet
P. O. Box 1268
Harrisburg, PA 17108-1268
RE: #9803 I
Erie Insurance Company
Goelz Properties
Renlal Property - 6599 Carlisle Pike
Goetz Motel. 13 I Glenwood, York, PA
Dear Mr. Brenner:
On December 7, 1994, I visited two properties owned by Mr. William Goetz. One property is
located al 6599 Carlisle Pike, Silver Spring Townsbip. and the other is at 133 Glcnwood ROld,
York, PA 17019. 11le purpose of the visit on the above date was to determine if the structures at
Ibese 10caEions were damaged by ice and snow as claimed by tbe owner.
On Marcb 19, 1998. with pennission oflbe owner, I revisited tbe two sites. On this second visit,
I observed various features of conslmctiou and compared them to conditions noled on the first
visit.
A - ProlJerly lit 6599 Cnrlisle "ike
(Orientation references made while viewing Slmcture from front. Front ofstrocture is side
facing street)
- Left Front Bedroom on Second Floor
1st Visit
Aller making obselVlltions on existing conditions, the writer concluded that
the slains on tbe window head, walls and ceiling were not caused by ice
and snow deposited on the building in Ibe winter of 1993-94.
-1-
,
,
,
211d Visit
111e walls and ceiling were painted since Ihe time orthe first trip. The paint
noled onlhe first visit was applied over wallpapered surfaces. The paint
noted during the second visit was applied over Lhe pre-existing paint
widlOUI removing the wallpaper. Onlhe second visit. some stains were
noted on the painted surfaces.
Comment
For comparison see photos (1994, R-I)
(1998, R-2)
#7
#6 and #5
2 - Middle nedroom l.eft Side Se~ond Floor
ht Vis II
Based on obselVations made, Ihe writer concluded that the peeling paint
on Ihe ceiling was not caused by weight orice and mow on the root:
Roofloads are nol supported by the ceiling structure in this room.
2nd Villi
TIle wallpaper on the walls and Ihe curtains at the window arc unchanged
from die lime of the first visit. TIle peeling paint condition on the ceiling
appears 10 be unchanged also.
Comment
For comparison see photos: ( 1994, R-I)
(1998, R-2)
#S and #6
#9 and #8
3 - Rear Bedroom Se~ond Floor
1st Villi
Based on obselVations of the stained ceiling and the roof condition above
these slains, Ihe writer was of the opinion that tbe age deteriorated shingles
and Dasbing were responsible for leaks which stained the ceiling.
2nd Visit
111c stapled fibrolls tile ceiling in Ihe closet and room area have been
paillled since the time of the firsl visit.
-2-
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Comlllent
For cOlllparisoll see photos: ( 1994, R-2)
(1998, R-2)
118 and 119
1111 and 1/12
4 - Fomlly Roonl Ileor Firll F100r
!ltVidt
Aller obselVing conditions on the roof above this room, the writer was of
the opinion thai age deterioration and construction deficlenclcaln the
roofmg were the cause ofleaks which stained the ceiling In the room
below.
2nd Vidt
TIle ceiling was painted and the roofing was replaced since the time of the
first visil.
Comnlent
For cOlllparison see photos: (1994, R-2)
(1998, R-2)
(1994, R-2)
(1998, R-I)
1/14
1/12
I/IS, 1/23, 1/24
1/7,1/6,#4
For lack of cap flashing and gaps allop of base flashing at chimney, see
photos: (1994, R-2) 1/23
For deteriorated roll roofing, nail pop-ups, and lack of preventive
maintenance, see pholos: (1994, R-2) 1/16,1/18,1/19,1/20,1/21,1/24
5 - Shlnglel Rear Slope High Goble Roof Over Originol HOUle
1st Vi.1I
Writer was of the opinion thatlhe deterioration noted was the result of
advanced aging.
2nd Vi.it
New replacemenl shingles have been inslalled since the time of the first
visil.
-J-
,
.
Commcnl
For comparison see pholos: (1994, R-2)
(1998, R-I)
#32 and #28
#3 and #5
Also see (1994, R-2l #26, #27, #29 for additional view ofage deterioration
of shingles.
Genernl
At tbe time oftbe first visil (12-7-94), tbere were no signs ofreccot leaking on the front
slope oftbe higb gabled roof over Ihe original bouse. TIle contents stored on the attic floor,
under the front roof caves, showed no evidence of water damage. The dry dust on the attic floor,
under the front caves and tbe cobwebs at that location, arc further evidcoce that recent leaks did
not occur on the front slope of the roof. TIle lack of WaleI' damage, in the front bedroom wa11s
and ceilings under lite front roof eaves, is additional proof that the front slope of the roofdid not
leak at any recenl time before tbe first visit.
The ceiling damage, on tbe second floor in tbe middle bedroom, is old and probably was
caused by a leak in tbe roofing whicb pre-existed Ibe roofing in place in 1994. The leaks in the
rear bedroom were caused by Ibe exteme age delerioration oftbe roofing and flashing above
tbose rooms.
II mnst be noted Ihat new roof shingles bave been installed over the front, middle, and rear
bedrooms since Ihe visit of December 7, 1994. TIle roof rafters in the forward ponion of the
house are very slender, \videly spaced, and extremely long span. This condition was obviously
recognized as a strength deficiency by those responsible 10 installlbe new shingles. They
strengtbened Ihe rafters by adding new IloStS under eacb roof rafter. (Compare photos:
1994, R-2l #4 and #7 with (1998, R-2l #2, #3 and #4.
B - Property ot 131 Glcnwood Rood
l(ol - Soffils IInder Roof over 1.ong Contilcver Porch ot Entrance to Apartment
ll.ni1s..
htVidl
Aller observing conditions on tbe soffit, tbe writer was of the opinion that
the materials lIsed were improllcr for exterior applicalion.
.~.
,
, .
<
lod Visit
The vellieul surfnce frolll the low sofJiluuder the mnnsard overhang to the
high sofJil nbove the Ilorch hus been paillled since the time of the first visit.
Pnlts of the high sofJit above the porch have been covered with perforated
mnterial nnd pails of that same sofJit have been painted since the time of
Ihe firsl visit. The perfornted sofJit is installed against the gypsum board
soffit. TIle perforated sofJit selVes to cover tbe original gypsum bOlrd but
call1lOI provide any benefit of ventilation.
..;..
Cnn1nlent
For cOlllparison see pholos: (1994, R-2) #3
(1998, R-I) #20
1(11) - Roofing Over Long Continuos Por,," ot [ntronee to Aportment IInlts
ht Visil
During this visil, the writer noled age delerioration of shingles, improper
installalion of shingles, elc.
2nd Visil
Some spot repairs were made at isolated locations since the time of the first
visit.
Colltlltenl
For comparison see photos: (1994, R-I) # 1
(1998, R-2) #9
2 - Aportmenl lInilNI
1st Visit
It wns the wriler's 011 inion Ihal Ihe dark area was nol the result of a roof
leak cnused by weight ofice and snow. TIle roof trusses, whicb cmy the
snow loads, are nol supported by the front wall oftbe apartment.
2nd Visil
Building owner could not provide nccess to Ihis apartment.
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,
3 - Al'ortment Unit #/3
hi Visit
In Ihe wriler's ol,inion, the fact that the tape in the joint between ceiling and
I,artitions is beginning to lelegraph through tbe paint is not caused by
weight of ice and SIlOW on the roof. The roof trusses which cany the snow
loads, are not snpported by the interior partitions.
2nd Visit
Building owner could not provide access to this apartment.
4 - Aportment Unit #/4
htVidl
During this visit, the wriler nOled a small crack in the taped joint between
ceiling and inlerior partition and expressed an opinion thlt this condition
was not caused by the weight of ice and snow. The roof trusses which
cany the snow loads. are not supported on the interior partitions.
.<
2nd Vidt
Building owner could 1I0t provide access to this apartment.
5(0) - Apartment Ifnils #/8. 9, 10. II t and 12
ht Visit
Inlhe wrilers opinion, Ihe cracks at the taped joints between ceiling and
partilions, were 1101 caused by weight of ice and snow.
2nd Visit Ifnit #/8
l11e laped johns belween ceiling and partitions are open. This indicates a
downward seurement of the concrete floor slab which supports the
paltilions. TIlis may signal a seulemenl in the earth beneath the slab.
l11e ceiling is snpported by Ihe roof structure. If the roofwere loaded with
snow, Ihc movcmenl oflhe ceiling would be downward. There is no
evidence or compression f.,ihue inlhe partitions which would be expected
if the ceiling nnll rllllrrmming moved dowllward.
-6.
.
~
'Illc ollcn joints conld nol bc caused by a roofload that would cause the
roof Ii-nming nnd IIl1nchcd ceiling 10 move ullward away from the top ofthe
Illlltilions.
2nd Vlsillfnl:..Jl2
Painting inlhis unil was done aileI' Ihe time of the first visit. Cracks are
slill visible at joillls between gypsum wall board panels. These cracks are
not caused by weiglll of ice and snow. TIley are caused by drying
shrinkage stresses and stresses due to movement from temperature changes
which ore non1lal and 10 be expecled in this type of construction,
An elCterior door 01 the rear elCterior wall removed and a new window
installed ill ils Jllacc sillce the time of the first visit. The exterior wall
and door wcre nOI damaged by ice and snow al the time of the first visit.
2nd Vi.hllnit 1110
Very minor cracks werc noled onlhe ceiling adjacent to the front door and
allhe ceiling 10 wall joint on the partition between Unit #9 and Unit #10.
lllese cracks nre nOI caused by weight of ice and snow. They arc caused
by drying shrinkage stresses and stresses due to movement resulting from
lemllerntllrc changes. TIlese cracks ore nonnal occurrences and are to be
expected in this tY)le of conslruclion.
Comment IInit.Jtlll
ForcolllJlnrislln sccllhotos: (1994, R-3) #3
(1998, R-I) #11
2nd Visit Ifnit #11
TIlis unil was occullied and access was denied by tenant.
2nd Visillfnlt #12
TIle blemish on the kilchen ceiling has been repaired and the room
rellaintcd sincc Ihe lirst visit. TIle blemish was in the fonn of a gouge in
the gY)lSlllll bourd ceiling. It was not caused by weight of ice and snow.
t.
I
-7-
ell.
'.
~
!Juumenlllnit #/12
Fill' cllmpalislln see I,hotos: (llJlJ4. R-J) liS
(llJlJll. R-I) #14
5(h) - Foyer Belween IInits #/9 nnd #/1lI
151 VI.it
In the writers opinion, the slight sel,aration ofthe tape in tho joint between
wall and ceiling was not caused by weigbt ofico and SIIOW.
2nd Visit
It alJpears that tbis area was painled since tbe time of the first visit, Tho
condilion seems sligbtly improved since Ibe first visit.
Commenl Foyer Between IInit #/9 nnd #/10
For coml'8rison see photos: (1994. R.J) #4
( 1998~ R.I) #8
Bllildin~ #/2 IIsed Fllrnilllre Slore Room nnd Superintendent's Apartment
151 Visil
Leaks inlbe apartment were along exterior walls. Missing shingles, poorly
made relJairs, exposed nail beads in sbingles, elc. are the cause ofleaks.
11,ere was no evidence tbat the leaks were caused by weight ofice and
snow.
Evidence of old leaks were noted in the Store Room where the electric
selVice pole pierces the roof. 11,is leak was caused by poor flashing and
not by weight of ice and snow.
2nd Visil
11le two sin ins on the ceiling in Ihe apartmenl remain uncbanged since tho
time of the lirst visit.
11le slains on Ihe Store Room ceiling under Ihe eleclric selVice pole remain
unchanged since Ihe lirst visit
. . O. ''''''''~''''''~<''~'',..-,-'- ~"'l'" ,..,,_~,
.
. " ..
Comment Building 112
For cOlllllarison see photos: (1994, R-3)
(1998, R-I)
1123 and #24-Supt'8 Apt.
#16 and #17-Supt'sApt.
Genernl
In the writer's ollinion, the problems experienced at this location Ire the result of
a) Age deterioralion of shingles.
b) Improper installation of shingles.
c) Improperly ID8de repairs 10 shingles and lack of maintenance.
d) Improper selection of gypsum board for exterior application.
(e) Construction over filllD8terial..
.Since the sile visit of 1994, Ihe wriler has compared the site topography that existed
prior to the consll1Jclion of these buildings willI the finished topography as altered for the
conSll1Jction ofllle buildings. It is evidentlllBt the building are constructed over a deep layer of
fill and therefore the stl1Jcture must experience some differenlial settlement. Such settlement of
the concrele floor slabs can explain the downward movement of partitions and the gaps formed
between the 1011 of panilion and ceiling.
Respeclfully submitted,
EUGENE J. AUFIER
E~.P.E
EJNjg
Encl.
copy 10 file
-I).
.
CERTIFICATE OF SERVICE
I hereby certify that I am this day servinq a copy of the
foreqoing document upon the person(s) and in the manner
indicated below, which service satisfies the requirements of the
Pennsylvania Rules of Civil Procedure, by depositing a copy of
same in the United States Mail at Harrisburg, Pennsylvania, with
first-class postaqe prepaid and addressed as follows:
Roger J. Harrinqton, Esquire
O'Brien and O'Brien Associates
1260 Suburban Station Building
Philadelphia, PA 19103
Attorney for Plaintiff
By:
~KA'\l' SHIPMAN,
" (l~t~_~
Thomd~ ~.-Brenner, Esquire
Attorney I. D. No. 32085
P.O. Box 1268
Harrisburg, PA l7l08-1268
(717) 234-4161
Attorneys for Defendant
P.c.
DATED:
12263.1
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WILLIAM GOETZ, IN THE COURT OF COMMON PLEAS OF
Plaintiff CUMBERLAND COUNTY, PENNSYLVANIA
vs. 95-6790 CIVIL
ERIE INSURANCE EXCHANGE, CIVIL ACTION - LAW
Defendant
IN RE: DEFENDANT'S MOTION FOR PARTIAL SUMMARY JUDGMENT
BEFORE HESS AND OLER.l1.
ORDER
AND NOW, this
z.1. ~ day of January, 1999, following argument thereon and
eareful considemtion thereof, the motion of the defendant for partial summary judgment is
DENIED.
BY THE COURT,
Roger J. Harrington, Esquire
For the Plaintiff
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"J .1".
Thomas Brenner, Esquire
For the Defendants
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