Definitions

Authorized Representative—the insured individual, his spouse, members or partners of an insured partnership or joint venture and their spouses, members and managers of insured limited liability company, an insured organization's executive officers and directors, stockholders of a non-publicly traded insured organization, trustees of an insured trust, and employees assigned to manage the insurance program of the insured organization.

Coverage Term—the year commencing at 12:01 am standard time at the insured's mailing address on the effective date; if a multiyear policy, each consecutive annual period thereafter. The term ends at 12:00 am standard time at the insured's mailing address on the earlier of the day the policy period in the declarations ends or the day the coverage is terminated or cancelled.

Application. This is the application submitted by the insured to the insurer. The application is attached to and forms part of the policy.

Hostile Fire—a fire that becomes uncontrollable or breaks out from its intended location.

Insured—the named insured shown in the declarations and any person or organization qualifying in the underlying policy.

Loss—the sums paid as damages in settling or satisfying a claim to which the insurance applies and for which the insured is legally liable after deductions for recoveries, salvages, and other insurance. Loss does not include investigation, adjustment, defense, or appeal costs.

Pollutants—any solid, liquid, gaseous, or thermal irritant or containment. Pollutants include smoke, vapor, soot, fumes, acids, alkalis, chemicals, petroleum products and their byproducts and waste.

Underlying Insurance—the policies and limits of insurance shown in the schedule of underlying insurance.

Exclusions

The insurance does not apply to the following.

Asbestos—any liability arising out of, attributable to, or related to asbestos..

Pollutant–Auto—any liability arising out of the discharge, dispersal, seepage, migration, release, emission, or escape of pollutants under many circumstances. Pollutants or those contained in property that is being transported or towed by or handled for movement into, onto, or from an auto, that are otherwise in the course of transit, and that are being stored, disposed of, treated, or processed in or upon an auto are excluded.

Also excluded is a situation before the pollutants or property containing the pollutants are moved from the place where they are accepted by the insured for movement onto or into an auto or after they are moved from the auto to the place where they are disposed of, abandoned, or delivered by the insured. Pollutants that are needed for or result from the normal functioning of the vehicle are not included in the exclusion if they escape, seep, migrate, or are released directly from an auto part designed by the manufacturer to hold, store, receive, or dispose of the pollutant. Bodily injury or property damage arising from the operation of cherry pickers or similar devices mounted on autos and used to raise or lower workers, and air compressors, pumps, and generators are not included in the exemption.

Occurrences taking place away from the premises, with respect to pollutants not in or upon an auto, if any of the pollutants are upset, overturned, or damaged as the result of the maintenance or use of an auto or discharge, dispersal, seepage, migration, release, emissions, or escape of the pollutants is caused by upset, overturn, or damage are excluded.

The exclusion applies regardless of whether the insured is engaged in activities that taint or degrade the environment or uses, generates, or produces the pollutant.

Pollutant–Other Than Auto—liability arising out of the actual, alleged, or threatened discharge, dispersal, seepage, migration, release, escape, or emission of pollutants. The exclusion applies at or from any premises, site, or location presently or at any time owned, rented, leased, or occupied by the insured. Some exceptions apply if such liability is covered by the underlying policy.

Various locations and situations where the insured may have handled, stored, transported, disposed of, or processed, or treated waste or tested for, monitored, cleaned up, removed, contained, treated, detoxified, neutralized, or in any way responded to or assessed the effects of pollutants are excluded.

Losses, costs, or expenses arising out of and claims or suits by or on behalf of a government

authority for damages because of requests, demands, orders, or statutory or regulatory requirements that the insured test for, monitor, clean up, remove, contain, treat, detoxify, or neutralize or in any way respond to or assess the effects of pollutants are excluded.

Underlying Insurance—liability not covered by underlying insurance, except when aggregate limits are exhausted, is excluded.

Conditions

Quite a few conditions affect the Excess Liability policy.

Appeals. If a judgment exceeds the underlying limits of insurance, the insurer may elect to appeal the judgment. The insurer must appeal at its own expense.

Audit. If the declarations indicate the coverage is subject to audit, the premium shown as advance premium is a deposit premium. At the close of the audit period, earned premium for the period will be computed. If earned premium is less than the deposit premium, the excess will be returned to the first named insured. If the earned premium is greater than the deposit premium, the first named insured must pay the difference upon notice from the insurer. The earned premium will never be less than the minimum premium stated in the declarations.

Bankruptcy. If the insured or the insureds estate is bankrupt or insolvent, the insurer is not relieved of its obligations under the coverage.

Duties in the Event of Occurrence, Claim, or Suit. The insured must notify the excess and the underlying insurers as soon as practicable of any occurrence that may result in a claim. The notice should include how, when, where the occurrence took place; names and addresses of witnesses and injured persons; and the nature and location of injury or damage arising out of the occurrence.

The insured is also required to notify the excess and underlying insurers if a claim is made or suit brought against any insured that is likely to involve the coverage.

The insured must see to it that the excess and underlying insurers are assisted in the enforcement of any right against any party that may be liable to any insured for damage or injury for which the insurance applies, and the insured must cooperate in the investigation, settlement, or defense of claims or suits.

An insured cannot voluntarily make a payment, assume an obligation, or incur any expense without the insurer's consent, unless it is at their own expense or is for first aid.

First Named Insured. The person or organization named first in the declarations acts on behalf of all other insureds.

Liberalization. If the insurer makes any changes to any forms or endorsements for which a separate premium charge is made, within forty-five days prior to the beginning of the policy period or coverage part, and the change provides more coverage, the change is included in the policy until the end of the current policy period.

Loss Payments. Coverage applies only after the insured and the underlying insurers pay the full amount of the underlying insurance limits.

Maintenance of Underlying Insurance. The insured must maintain the underlying insurance in full force while the excess policy is in effect.

Other Insurance. The coverage is excess, and not contributory, over other valid and collectible insurance, unless the other insurance is written specifically to be excess over this coverage.

Premium. The advance and anniversary premiums are not subject to adjustment, unless the declarations or an endorsement states otherwise.

Representations. The insured agrees that statements made in the declarations are the insured's agreements and representations, but the insurer will not reject coverage if the insured unintentionally fails to disclose all hazards at the inception date of the policy.

Transfer of Rights of Recovery Against Others to Us. The insured's rights to recover all or part of the payment the insurer made under the coverage are transferred to the insurer.

Recoveries are applied first to reimburse amounts actually paid by anyone, including the insurer, that were in excess of the insurer's payments; next, the insurer will be reimbursed; and last, leftover amounts will be distributed to anyone else known to have a legal entitlement to the recovery.

If the insured or the underlying insurer waive rights of recovery against anyone, the excess insurer also waives its rights.

Nuclear Energy Liability Exclusion

The Excess Liability Policy also contains a Nuclear Energy Liability Exclusion endorsement, which modifies the policy's exclusions to include exclusions for liability with respect to insureds who are also insured under a nuclear energy liability policy or resulting from hazardous properties of nuclear material in different situations.