This introductory paragraph introduces exclusions that apply to liability and physical damage coverages under the policy, in addition to other exclusions included elsewhere in the policy. The exclusions listed in this section are total exclusions, meaning there will be no coverage whatsoever for these circumstances, regardless of whether they occur or contribute to an otherwise covered loss or accident.

Even though the exclusions are for the same circumstances under both Parts II and III, they are listed separately to distinguish between the coverage applicability.

Topics covered:

Exclusions

Conditions

PART II The following apply to Part II

1. GOVERNMENT/LEGAL / WAR

A. Any act or condition of: war (declared or not), civil war, invasion, insurrection, rebellion, revolution, or seizure of power, including acts done to defend against any such act or condition, whether actual or expected. B. Knowing violation of penal law or ordinance committed by, or with the consent of, an insured. Statutory fines or liability. Exemplary or punitive damages.

2. NUCLEAR ENERGY

A. With respect to Coverage A, we do not insure bodily injury or property damage as follows:

1. With respect to which an insured in this policy is also an insured under any nuclear energy liability policy (or would have been an insured under such but for its termination upon exhaustion of its limits). 2. Resulting from the hazardous properties of nuclear material, with respect to which:

a. Any person or organization is required to maintain financial protection pursuant to the Atomic Energy Act of 1954, or any amendments, or b. The insured is (or would be if this policy did not exist) entitled to indemnity from the United States of America or its agencies under any agreement entered into by the United States of America or its agencies.

3. Resulting from the hazardous properties of nuclear material, if:

a. The nuclear material is at, or is discharged or dispersed from, any nuclear facility owned or operated by or on behalf of any insured, or b. The nuclear material is contained in spent fuel or waste at any time disposed of, handled, possessed, processed, stored, transported, or used by or on behalf of any insured.

4. The furnishing by any insured of equipment, materials, parts, or services in connection with the construction, maintenance, operation, planning, or use of any nuclear facility: but if such facility is located within the United States of America, its possessions or territories, or Canada, this applies only to property damage to such facility and property located at such facility.

B. With regard to Coverage B, we do not insure medical expenses in connection with bodily injury resulting from the hazardous properties of nuclear material and arising out of the operation of a nuclear facility by any person or organization.

C. Glossary The following special definitions apply to this Exclusion:

1. Hazardous Properties include explosive, radioactive, or toxic properties. 2. Nuclear Facility means any of the following:

a. Any nuclear reactor; b. Any equipment or device designed or used for: separating the isotopes of uranium or plutonium; processing or utilizing spent fuel; handling, processing or packaging waste; c. Any device or equipment used for alloying, fabricating, or processing of special nuclear material if at any time the total amount of such material in the custody of the insured at the premises where such device or equipment is located consists of, or contains more than, 25 grams of plutonium or uranium – 233, or any combination of such materials, or more than 250 grams of uranium – 235 d. Any basin, excavation, place, premises, or structure prepared for, or used for, the storage or disposal of waste; or e. The site on which any of the foregoing property is located, all operations conducted on such site, and all premises used for such operations.

3. Nuclear Material means source, special nuclear, or by-product material. 4. Nuclear Reactor means any apparatus designed or used: to sustain nuclear fission in a self-supporting chain reaction; to contain a critical mass of fissionable material. 5. Property Damage also includes all forms of radioactive contamination of property. 6. Source Material, Special Nuclear Material, and Byproduct Material have the meanings given them in the Atomic Energy Act of 1954, or any amendments. 7. Spent Fuel means any fuel component or element, whether solid or liquid, which has been either used in, or exposed to radiation in, a nuclear reactor. 8. Waste means any material, resulting from the operation of a nuclear facility as defined in the first two items of nuclear facility, containing by-product material other than the tailings or wastes produced by the extraction or concentration of thorium or uranium from any ore processed primarily for its source material content.

This is the broad form nuclear energy liability exclusion, using the same language as in its ISO equivalent, IL 00 21 Nuclear Energy Liability Exclusion Endorsement.

The first part of the endorsement is with respect to Coverage A. This insurance does not apply to bodily injury or property damage with respect to which an insured under the policy is also an insured under a nuclear energy liability policy issued by certain entities; this is, of course, to combat the possibility of dual coverage.

The nuclear material discussed in this exclusion must be at any nuclear facility owned by, or operated by or on behalf of an insured, or must have been dispersed from such nuclear facility. Also, the exclusion applies if the nuclear material is contained in spent fuel or waste at any time possessed, handled, used, or transported by an insured. For example, if, while disposing of some contaminated water from a nuclear power plant or a nuclear fission manufacturing plant, the insured or someone acting on behalf of the insured causes injury or damage, this exclusion applies to such injury or damage that results from the hazardous properties of the nuclear material.

Coverage for bodily injury or property damage resulting from hazardous properties of nuclear material is excluded if the injuries or damages arise out of the furnishing by an insured of services, materials, parts, or equipment in connection with the planning, construction, operation, or maintenance of any nuclear facility.

With regard to Coverage B medical expenses, the nuclear energy liability exclusion applies to expenses incurred with respect to bodily injury resulting from hazardous properties of nuclear material, and arising out of the injuries from the operation of a nuclear facility by any person or organization.

The definitions section of the endorsement contains eight items: hazardous properties, nuclear material, source material, spent fuel, waste, nuclear facility, nuclear reactor, and property damage.

With respect to the definition of nuclear facility, item d. includes any structure, excavation, or premises prepared or used for the storage or disposal of waste. The intent to exclude any coverage for damages from a nuclear dump site is strengthened by a final catch-all paragraph that includes as a nuclear facility the site on which any of the foregoing is located, all operations conducted on such site, and all premises used for such operations.

Waste is defined as any waste material containing by-products resulting from the operation of any nuclear facility. However, waste by-product does not include the tailings or wastes produced by the extraction or concentration of thorium or uranium from any ore processed primarily for its source material content.

Property damage includes all forms of radioactive contamination of property. This term encompasses not only actual physical damage but also loss of use of property that is not physically injured.

PART III The following apply to Part III

1. GOVERNMENT / LEGAL / WAR

A. Any act or condition of: war (declared or not), civil war, invasion, insurrection, rebellion, revolution, or seizure of power, including acts done to defend against any such act or condition, whether actual or expected. B. Knowing violation of penal law or ordinance committed by, or with the consent of, an insured. Statutory fines or liability. Exemplary or punitive damages. C. Confiscation, loss, or seizure under customs, drug enforcement, or quarantine legislation or regulations. Loss to property that is contraband or in the course of illegal transportation or trade.

Paragraph A. of this exclusion is the war exclusion commonly found in standard insurance policies. Paragraph B. is also a standard exclusion as knowingly violating any law is not insurable, and standard policies exclude such violations of law, ordinance or statutes and their associated fines and penalties. This exclusion also precludes any payment of exemplary or punitive damages. Paragraph C. excludes confiscated or seized property, as well as contraband property or property being used or transported illegally. An example of this would be an insured involved in an accident while transporting cannabis from one state where it is legalized into another state where it is not legalized.

2. NUCLEAR / RADIOACTIVE LOSS

A. Any nuclear event, occurrence, or operation, including nuclear explosion, nuclear reaction, nuclear radiation, or radioactive contamination. These are not fire, explosion, smoke or any other covered cause of loss.

B. The explosive, radioactive, toxic, or other injurious properties of nuclear or radioactive materials – whether such materials are natural or manufactured.

Nuclear and radioactive hazards and materials are excluded in standard policies as they are ultra hazardous exposures. However, if a nuclear reaction results in an otherwise covered cause of loss such as a fire or smoke damage, an exception is included under Paragraph A. for such resulting loss. Notice that in this exclusion the word "loss" is not italicized, meaning that it is not bound by the definition of loss found in the Glossary. This gives the word its broadest meaning possible, entirely excluding any type or kind of loss. COMMON CONDITIONS – PARTS II AND III

The following are Conditions that apply to both Parts II and III. These Common Conditions apply in addition to those shown under the separate coverage parts of this policy.

This introductory paragraph introduces conditions that apply to liability and physical damage coverages under the policy, in addition to other conditions included elsewhere in the policy.

Even though the exclusions are for the same circumstances under both Parts II and III, they are listed separately to distinguish between the coverage applicability.

1. ACTION OR SUIT AGAINST US

No action may be brought against us until all conditions in this policy are complied with, and unless brought within one year from the date of loss. No right exists under this policy for you or others to make us party to an action against any insured.

This is a standard condition that any action against the insurer must be made within one year of the date of loss; and then only if all conditions under the policy were met. No one has the right to name the insurer as a party in any action against an insured.

2. ASSIGNMENT OF YOUR INTEREST

No assignment of an interest under this policy is binding on us without our written consent. However, if you are an individual and die, this insurance applies to the following who become insureds under this policy in the described capacity:

A. Your legal representative, while acting within the scope of the representative's duties.

B. Those with custody of your property prior to appointment of a legal representative.

No one can be assigned an interest under this policy unless the insurer gives written consent to such assignment. The exception to this is in event of death of an insured individual, the following will be granted insured status under the policy in the described capacity; the insured's legal representative while acting within the scope of their duties as such; or those having custody of the insured's property until such time as a legal representative is appointed.

3. CANCELLATION / TERMINATION

A. General You may cancel this policy by surrendering the policy to us or our agent or by mailing us or our agent notice stating a subsequent cancellation date for the policy. Such request made by the first named insured applies for all insureds / interests named in this policy. If we cancel, any refund will be pro rata. If the first named insured cancels, refund may be less than pro rata. Any return premium is payable to the first named insured – within 30 days after the cancellation date. If you secure insurance with another insurer to replace our policy and do not pay the premium, or installment payment, for this policy when due: this policy terminates at the time such other insurance becomes effective. If you sell a covered auto to others, coverage under this policy terminates at the time title is transferred to others with respect to such auto.

B. Our Right to Cancel or Terminate Our rights to cancel or terminate this insurance are described elsewhere in this policy in the state mandatory endorsement.

Either the insurer or the insured may cancel the policy by following the provisions set forth under the cancellation / termination provisions. These are typical cancellation and termination provisions as in standard commercial policies, granting the insured any return premium due within thirty days of cancellation. With respect to replacement of this policy, if the insured obtains other replacement insurance and doesn't pay the premium or installment due on this policy when due, then this policy will terminate at the time the other insurance is effective. If a covered auto is sold, coverage will terminate at the time that auto's title is transferred.

4. CONCEALMENT / MISREPRESENTATION / FRAUD

This policy is void if, either before or after an accident or a loss, any insured misrepresents or knowingly conceals any material fact or circumstance, commits fraud, or swears falsely relating to any aspect of this insurance (including the information we relied upon in issuing this contract). However, if we specifically choose not to declare this policy void, we do not provide insurance under this policy to, or for the benefit of, any such insureds.

5. CONFORMITY WITH STATUTE

It is agreed by us that the provisions of this policy are amended to conform to all applicable statutory requirements.

6. COVERAGE TERRITORY

We cover or losses occurring only within the United States of America (including its possessions and territories), the District of Columbia, Puerto Rico and Canada.

We also cover loss to a covered auto while being transported between any of these places.

The condition for concealment/misrepresentation/fraud allows the insured to void the policy if the insured knowingly conceals anything, commits fraud, or falsely swears to any aspect of this insurance, including information the insurer relied upon prior to issuing the policy. If the insurer opts not to void the policy, the coverage still will not apply to or for the benefit of any insured conducting any of these excluded acts.

The policy is amended to conform to any applicable statutory requirements.

The policy covers losses within the U.S. and its territories and possessions, D.C., Puerto Rico, and Canada, and also covers loss to a covered auto while being transported between any of these places. So if an insured is involved in an accident while traveling on business crossing the border into Canada, the loss will be considered to be in the coverage territory.

7. EXAMINATION / PREMIUM AUDIT

A. We may, at our option, inspect your property and operations at any time, make surveys, and make recommendations. However, our reports or recommendations or those of any inspection bureau or rating bureau do not constitute a determination or representation that any premises or operations are in compliance with law or regulation, healthful, or safe.

We may inspect and audit your books and records at any time (including up to 3 years after termination of this insurance contract) to the extent such pertains to the subject of this insurance or payment of premium. The first named insured is required to keep all records necessary for such and send complete accurate copies to us at our request.

B. The estimated premium for this insurance is based on the exposures you told us you would have at the beginning of the policy term. We will compute the final premium due after we determine your actual exposures.

The estimated premium will be credited against the final premium due and the first named insured will be billed for any balance. If the estimated premium exceeds the final premium, the difference will be refunded to the first named insured.

Paragraph A. of this condition gives the insurer the right, but not the obligation, to inspect property and operations, make surveys, and give recommendations with respect to the insurance being provided. Any reports or recommendations made do not address compliance in matters of law, nor do they speak to the healthfulness or safety of the insured's premises or operations. Further, in connection with the insurance being provided, the insurer is granted the right to inspect and audit the insured's records for up to three years after the insurance terminates. If requested by the insurer, the insured must send complete and accurate copies of the books and records.

Paragraph B of the condition gives the insurer the right to compute the final premium based on true and accurate exposures, and if the premium estimated at the beginning of the policy issuance is insufficient to cover the exposures, the insurer will bill the insured for the difference. Conversely, if the estimated premium is greater than the final premium, the insurer will refund the excess to the insured.

8. LIBERALIZATION

This policy is automatically extended to include provisions approved during the policy period or within 45 days prior to its inception, which would broaden coverage under this policy, if such are not subject to additional premium or concurrent with coverage restrictions.

Insurers periodically introduce new policy editions that contain some changes. Any broadening of coverage produced by a revision of the policy that is introduced anytime during the policy period or in the forty-five days preceding its inception will immediately apply to the insured's unrevised policy. However, the liberalization clause does not apply if the revision that broadens coverage also includes coverage restrictions or requires any extra premium. This provision is standard in many insurance forms.

9. OTHER INSURANCE

A. For any covered auto owned by you, this insurance is primary insurance. For any covered auto you do not own, this insurance is excess insurance over any other collectible insurance applicable to the loss.

B. Coverage A Special Condition

1. While a covered auto that is a trailer is attached to another vehicle, Coverage A under this policy for such trailer is:

a. Excess while the trailer is attached to motor vehicle you do not own. b. Primary while the trailer is attached to a covered auto owned by you.

2. Coverage A under this policy is primary for any liability covered under the Contractual Supplemental Coverage.

C. When this insurance and any other insurance cover on the same basis, either excess or primary, we pay no greater proportion of the total amount of loss or the insured's obligation than the applicable limit of liability of this policy bears to the total amount of insurance of all insurers covering on the same basis.

D. For Coverage B, other collectible insurance means only other collectible auto medical payments insurance.

In event of other insurance that applies to an owned covered auto, this insurance will be the primary policy, but for nonowned covered autos any other insurance available to cover the loss will be primary, and this insurance will be excess. If insurance covers on the same basis as this insurance, this policy will pay no more than its proportion to the total loss

Paragraph B applies only to coverage for attached trailers. The condition makes coverage primary when the trailer is attached to a covered auto owned by the insured, but excess when it is attached to a non-owned vehicle. For liability covered under the Contractual Supplemental Coverage, the policy is primary for Coverage A.

Paragraph C is the antistacking condition. If more than one insurance is available to pay for the loss, this sets the maximum this insurance will pay in proportion with that other insurance as the proportion that this policy's limit of insurance bears to the total of all insurance covering on the same basis.

Paragraph D applies only to medical payments coverage. This condition clarifies that other collectable insurance means collectible auto medical payments insurance.

10. PREMIUMS

A. The first named insured is responsible for the payment of all premiums, and will be the sole payee of any premium we return. Premium adjustments, including audit premium adjustments, are due and payable on our notice of such to the first named insured.

B. If this policy is issued for a term longer than one year, the premium for this policy will be computed on an annual basis. We will use the rates / premiums in effect at the beginning of each year of the policy term.

11. RECOVERY FROM OTHERS If any insured (or others) to whom, or for whom, we make payment has any rights of recovery for the damages or loss from another, those rights are transferred to us to the extent of our payment under this policy. Insureds (or such others) must do whatever we require to secure these rights.

The first named insured (the party whose name appears first in the Declarations) is responsible for making all premium payments when due and receiving any return premiums. The insurer need not notify or pay anyone else in regards to premium considerations.

If the policy is extended beyond a one-year term, the policy premium is computed on an annual basis using the rates and premiums in effect at the beginning of the year of the policy term.

The recovery from others condition defines the insurer's subrogation rights under the policy when the insurer makes a payment to or for any insured (or others). The reference to others preserves the insurer's subrogation rights with respect to third parties who might recover for a loss under the policy. It clarifies that the insurer takes over the subrogation rights of not only the named insured, but also of any third-party, but only to the extent of any payment the insurer has made to that third party; and that the insured must assist the insurer in the subrogation.

In essence, if the insured waives its right of recovery against a third party after a loss has occurred, the insurer may not be obligated to pay a claim that might otherwise be covered.

However if the insured waives its right of recovery before a loss, it does not affect the insured's right of recovery.

12. TIME OF INCEPTION

The time of inception and expiration is 12:01 A.M. Standard Time at the address shown in the Declarations.

13. TWO OR MORE POLICIES ISSUED BY US

If this policy and any other policy or coverage form issued to you by us, or by any company affiliated with us, apply to the same loss, our maximum limit of liability under all of the policies and coverage forms shall not exceed the highest applicable limit of liability provided under any one policy or coverage form. In no event will any limit of liability of this policy be excess over or added to the limit of any other such policy or coverage forms.

The policy inception time is the same as in all standard policies, 12:01 A.M. standard time based on the insured's address shown in the Declarations. So if a loss occurs at 11:59 P.M. on October 15th, but the insured is unable to report it until 1:00 A.M. on October 16th, the policy in effect on October 15th will be the applicable policy.

If there is other insurance by way of a policy issued by the same or an affiliated insurance company, then the highest applicable limit of any one policy becomes the maximum limit available under all policies. If one policy has a limit of $1,000,000 and another has a limit of $500,000, the maximum limit available to the insured is $1,000,000. However, if one (or more) of the policies specifies its limit as excess, this provision does not apply. If in the previous example, the policy with the $1,000,000 limit is specified as excess insurance, the $500,000 limit applies first and the $1,000,000 limit applies to any amount over $500,000 up to an additional $1,000,000.

14. WAIVER OR CHANGE OF PROVISIONS Only the first named insured may request changes in this policy. The terms of this policy may not be waived or changed except in writing, signed by our agent and attached to this policy. The exercise of our rights in this policy is not an act of waiver. This policy contains all related agreements between you and us.

This condition stipulates that any changes in the terms of the policy can be made only by request of the first named insured and all changes must be agreed to in writing, signed by the insurer's agent and endorsed onto the policy. The entire policy, including any endorsements or attachments, constitutes all of the agreements between the insurer and the insured.