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Item C42 BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY Meeting Date: February 18.2004 Division: Management Services Bulk Item: Yes -X- No Department: Risk Management AGENDA ITEM WORDING: Approval to renew Pollution Liability insurance policy with Indian Harbor Insurance Company through Marsh USA (broker) . ITEM BACKGROUND: Provides Pollution Liability Insurance limits of $5,000,000 with a $50,000 deductible. Retroactive date of 7/10/95. This is the first renewal of coverage that was bid out last year. Current policy expires on 3/12/04. PREVIOUS RELEVANT BOCC ACTION: Approved Marsh Proposal in 2003 CONTRACT/AGREEMENT CHANGES: Policy term is 3/12/04 -3/12/05. Renewal premium is $67,260. Premium is increased by $4,864 or 7%. STAFF RECOMMENDATIONS: Approval TOTAL COST: $67.260 BUDGETED: Yes -X- No COST TO COUNTY: $67.260 SOURCE OF FUNDS: Ad Valor4I REVENUE PRODUCING: Yes --.L No AMOUNT P Year APPROVED BY: County Atty 4l0MBlPurc~ :4 anagement _X_ DIVISION DIRECTOR APPROVAL: '~Jt't~ O,bA-i-i..i--<- SHEILA BARKER DOCUMENTATION: Included X To Follow Not Requrred_ AGENDA ITEM #~ DISPOSITION: Revised 2/27/01 PROPOSAL for MONROE COUNTY, FL Pollution and Remediation Legal Liability POLICY TERMS CARRIER and POLICY FORM: Indian Harbor Insurance Company IHIC-PARL5CP (9/02) - Sudden and Gradual Pollution Coverage THE POLICY IS BEING ISSUED BY A CARRIER NOT LICENSED TO DO BUSINESS IN THE STATE WHERE THE INSURED IS :DOMICILED. YOUR OFFICE MUST HAVE A VALID E&S LICENSE AND WILL BE RESPONSIBLE FOR THE COLLECTION AND REMITI ANCE OF ANY APPLICABLE TAXES AND FEES AS WELL AS ~ FILING OF ALL REQUIRED AFFIDAVITS. A.M. BEST RATING: A+ (Superior) NAMED INSURED(S): MONROE COUNTY BOARD OF COUNTY COMMISSIONERS COVERED LOCATIONS: All locations listed. on the 2002 Monroe County property schedule on file with XL Specialty Insurance Company. The Key Largo Landfill The Long Key Landfill The Cudjoe Landfill TERRITORY: This policy will not apply to any risk which would be in violation of economic or trade sanctions administered by the United States Treasury, State, and Commerce Departments (e.g. the economic and trade sanctions administered by the United States Treasury Office of Foreign Assets Control- OFAC). Refer to Territory Section of Policy for coverage details. Countries or organizations with OF AC restrictions include but are not limited to the following: Balkans, Burma, Cuba, Iran, Iraq, Libya, Liberia North Korea, Sierra Leone, Sudan, and Taliban. Please note that this list is subject to change. Up to date information is available on U.S. OFAC home page (http://www.treas.gov/ofacl. 1 QUOTE SUMMARY 1. Limit of Liability - Each Loss, $5,000,000 Remediation Expense or Legal Defense Expense Limit of Liability - total All $5,000,000 Losses Remediation Expenses or Legal Defense Expenses Retention - Each Loss, a) $50,000 Remediation Expense or Legal Defense Expense Minimum Earned % 25% Policy Premium - I Year a) $f)8,466 Certified Terrorism Acts a) $6,S41- Coverage E and S Tax Insured $ '<>1. 'J. ~o 4 (pl:J.(; RETROACTIVE DATE: Coverage A - Pollution Legal Liability: Coverage B - Remediation Legal Liability: 7/10/95 7/10/95 The above quotation includes a premium for Certified Acts Of Terrorism coverage, which we are required to offer for certified losses under the Terrorism Risk Insurance Act of 2002. If you choose to decline this additional coverage, an exclusion will be added to this policy. Non-Certified Acts Of Terrorism are excluded. Subject to satisfactory underwriting, we have the ability to provide Non-Certified Acts Of Terrorism coverage, but only if Certified Acts Of Terrorism coverage is purchased. If you choose to decline this additional coverage, an exclusion will be added to the policy. CONDITIONS The following conditions apply to this quote: I. Receipt and satisfactory review of a completed XL Environ~ental, Inc. Facilities Pollution Renewal Application signed and dated by the insured must be returned (received). 2. Receipt and satisfactory Underwriter review of the insured's past two (2) years of financial statements must be returned prior to binding coverage (received). 3. Receipt and satisfactory review of the following prior to bin~ing coverage: · Updated environmental summaries, reports, or investigations. 4. For multi-year policies, Policy Limits do not annually reinstate. 5. All other terms and conditions listed under expiring Policy Number PEC0013729, Endorsement Numbers 001-011 will apply. ENDORSEMENTS The following endorsements/notices will apply to this Policy: l. ENSTEIHIC-FLNOT0601 Florida Notice to Policy Holders 2. ENSTEIHICOFLSOP0601 Florida Service of Process 3. ENSTE702a 4. ENSTE705 5. ENSTE708a 6. ENSTE711a 7. ENSTE715 8. ENSTE777 9. ENSTE778 10. ENSTE840 11. ENSTE852 12. ENSTE853a 13. ENSTE866 Pollution and Remediation Legal Liablity Schedule Undeground Storage Tank Schedule Additional Named Insured Retroactive Date 90 Day Notice of Cancellation Restrictive Amendment Coverage B - Off Premises Pollution Only Modification of Pollution Conditions Location(s) Specific Endorsement Mold Exclusion Minimum Earned Terrorism Exclusion The aforementioned endorsements change the policy, please read them carefully and contact the underwriter if you have any questions or comments. Complete copies of all endorsements are on file with the underwriter and are available upon request. RISK CONTROL AND ENGINEERING Loss Control/Risk Assessment Survey: As a requirement of coverage with XL Environmental, a Loss Control/Risk Assessment survey of our mutual client's operations may be necessary. The survey will be performed during the policy period, as appropriate. The survey will serve to provide necessary loss control information along with recommendations designed to assist in identifying, analyzing and controlling possible environmental exposures of the insured. This survey will be conducted by XL Environmental - Risk Control, or an approved subcontractor, and paid for by XL Environmental. Please note that, if necessary, more than one survey may be required during the policy period. CLAIMS HANDLING SERVICES In addition to insurance and loss control services, specialized claims handling services are provided by ECS Claims Administrators, a division of XL Environmental. ECS Claims is committed to the management of environmental, professional liability and traditional property and casualty claims. The company's integrated approach to claims handling distinguishes ECS Claims from otlter administrators, law firms and environmental consulting companies. With its experienced staff of attorneys, scientists, engineers and claim adjusters, ECS Claims is able to cost-effectively deliver a scop~ of services to clients which provides both a quality technical and claims handling function within a single <:1ompany. ECS Claims also is recognized for lowering costs and ensuring timely and fair resolutions of claims and is dedicated to providing quality, ethical, timely service in a friendly fashion to every client. PAYMENT TERMS Payment Terms -- In order to bind coverage, we must receive your written instructions confirming coverage(s) desired prior to releasing pplicy numbers. The full premium payment is due thirty (30) days from the invoice date. In orde~ to facilitate premium payment, we have the ability to arrange premium fmancing with an indep~ndent finance company (Cananwill) at favorable terms. If a premium finance quote or finance agreement is desired, please contact the underwriter for additional information. GENERAL CONDITIONS Receipt and satisfactory review of the following prior to binding coverage: Receipt of all required signed and dated endorsements (attached) must accompany written order to bind coverage. Binding of any quoted coverage is contingent upon placement of the coverage with XL Environmental. Exclusions in the quotation include, but are not limited to, the terms and conditions outlined above. Please refer to the policy contract for specifics. Any other coverage extensions, deletions, or changes requested in the submission are hereby rejected. Please include the insured's Federal Employer Identification Number (FEIN) with your binding order. This is a statistical reporting requirement for all states. ENDORSEMENT ## This endorsement, effective 12:01 a.m., forms a part of Policy No. issued to by THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. POLLUTION LEGAL LIABILITY AND REMEDIATION LEGAL LIABILITY SCHEDULE This endorsement modifies insurance provided under the following: POLLUTION AND REMEDIATION LEGAL LIABILITY POLICY In consideration of the indicated adjustment of premium, the INSURED and the Company agree to the following Policy change(s): Premium (increase/reduction): $ Section I., INSURING AGREEMENT, A. Coveratze A - POLLUTION LEGAL LIABILITY and COVERAGE B - REMEDIATION LEGAL LIABILITY applies to the location(s) listed below, but solely as respects liability of the INSURED: Location(s) owned, leased or operated by the INSURED: I. Fire Ambulance Station 23 Emerald Rd. Big Coppit Key, FL 33040 2. Fire Station Key Deer Blvd. Big Pine Key, FL 33043 3. Senior Citizen Center Key Deer Blvd. Big Pine Key, FL 33043 4. Library 200 Key Deer Blvd. Big Pine Key, FL 33043 5. Fire Station Oversees Hwy Conch Key, FL 33050 14. 16. Senior Citizen Center 33M Street - Gulf Marathon, FL 33050 17. Health Department 3333 Overseas Hwy Marathon, FL 33050 18. Airport Terminal ENSTE702a (9/02) 10, 2002, XL Environmental, Inc. 9480 Overseas Hwy Marathon, FL 33050 19. Public Works Offices 10600 Aviation Blvd Marathon, FL 33050 20. Fleet Maintenance Faclity 10600 Aviation Blvd. Marathon, FL 33050 21. Government Center Annex 490 63rd Street Marathon, FL 33050 22. Marathon Gov. Center/EOC 27900 Oversees Hwy Marathon, FL 33050 23. Detention Facility 3981 Ocean Terrace Marathon, FL 33050 24. Sheriff's Special Operations 85 Coco Plum Rd Marathon, FL 33050 25. Governmental Ce Highpoint Rd Plantation 26. 28. 0 s Offices K eights Drive Plantation Key, FL 33070 29. Senior Citizen Center Highpoint Rd Plantation Key, FL 33070 30. County Offices/ElIis Bldg 88800 US Hwy. #1 Plantation Key, FL 33070 ENSTE702a (9/02) 10, 2002, XL Environmental, Inc. 31. Detention Faclity Highpoint Rd Plantation Key, FL 33070 32. Public Services Building 5100 College Rd Stock Island, FL 33040 33. House for the Aged 5200 College Rd. Stock Island, FL 33040 34. Detention Facility 5501 College Rd. Stock Island, FL 33040 35. Sheriff Admin. Bldg. 5525 College Rd Stock Island, FL 33040 36. Health Clinic 170901 Highway # 1 (Rear Tavernier, FL 33050 37. 38. 40. 0 ces F lUg Street Key West, FL 33040 41. State AttorneyN oting Registrar 302 Fleming Street/SOl Thomas Street Key West, FL 33040 42. Lighthouse Museum 938 Whitehead S1. Key West, FL 33040 ENSTE702a (9/02) 10. 2002, XL Environmental, Inc. 43. Justice Bldg./Record Storage 530 Whitehead St. Key West, FL 33040 44. Library 700 Fleming St. Key West, FL 33040 45. Senior Citizen Nutrition Center Truman Ave. White St. Key West, FL 33040 46. Harvey Government Center 1200 Truman Ave. Key West, FL 33040 47. Airport Terminal 3491 S. Roosevelt Blvd. Key West, FL 33040 48. County Garage S. Roosevelt Blvd. Key West, FL 33040 49. Gato Building & Gener 1100 Simonion St. Key West, FL 33 0 50. 54. Cudjoe Key Landfill Cudjoe Key, FL 33042 All other terms and conditions remain the same. ENSTE702a (9/02) I{:l, 2002, XL Environmental, Inc. ENDORSEMENT # This endorsement, effective 12:01 a.m., forms a part of 13. issued to Policy No. by THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CA UNDERGROUND STORAGE TANK(S) AND ASSOCIATED This endorsement modifies insurance provided under the following: POLLUTION AND REMEDIATION LEGAL LIABILITY OLI In consideration of the indicated adjustment of pre following Policy change(s): Premium (increase/reduction): $ Section IV., EXCLUSIONS, Exclu 'on 1 ., the following: de~~fage Tank(s), is amended by the addition of Underground St This exclusion d below: derground Storage Tank(s) and Associated Piping listed [ nk(s) and Associated Piping on file with the Company or Size (gals.) 2,500 Contents Integrity Testing Anniversary Date NA Diesel Key Largo Fire Station 2,500 East Key Largo, MM99.5 Key Largo, FL 33081 Diesel NA ENSTE705 (9/02) I!:l, 2002, XL Environmental, Inc. Gato Building 10,000 Diesel NA 100 Simonton Street Key West, FL 33040 Justice Building 4,000 Diesel NA 530 Whitehead Street Key West, FL 33040 Courthouse 2,000 Diesel 500 Whitehead St Key West, FL 33040 Plantation Key Court 2,500 Diesel House 88800 Overseas Hwy Plantation Key, FL 33070 Detention Facility 12,000 5501 College Road Key West, FL 33040 Sheriff's Admin Bldg NA 5525 College Road Key West, FL 33040 NA Gas NA ENSTE70S (9/02) I!:J, 2002, XL Environmental, Inc. ENDORSEMENT # This endorsement, effective 12:01 a.m., forms a part of liability arising out of th Pollution Legal Liability issued to Policy No. by THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CA This endorsement modifies insurance provided under the folio POLLUTION AND REMEDIATION LEGAL LIAB In consideration of the indicated adjustment of following Policy change(s): Premium (increase/reduction): $ ]\famed INSURED(S), but solely as respects conditions remain the same. ENSTE708a (9/02) If:l, 2002. XL Environmental, Inc. ENDORSEMENT # This endorsement, effective 12:01 a.m., forms a part of In consideration of the indicated adjustment of pre following Policy change(s): issued to Policy No. by THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CA RETROACTIVE DA TE(S) - BLANKET This endorsement modifies insurance provided under the following: POLLUTION AND REMEDIATION LEGAL LIABILITY OLI Premium (increase/reduction): $ ENSTE711a (9/02) 10, 2002, XL Environmental, Inc. ENDORSEMENT # This endorsement, effective 12:01 a.m., forms a part of Section IX. CONDITIONS, Item B. CANCELL as follows: issued to Policy No. by THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CA NINETY (90) DAY NOTICE OF CANCELLA 0 This endorsement modifies insurance provided under the following: POLLUTION AND REMEDIATION LEGAL LIABILI All other terms ENSTE715 (9/02) 10, 2002, XL Environmental, Inc. ENDORSEMENT # This endorsement, effective 12:01 a.m., forms a part of Policy No. issued to by THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CA RESTRICTIVE AMENDMENT O~ COVERA REMEDIATION LEGAL LIABILITY TO APPLY TO OFF-P I This endorsement modifies insurance provided under the following: POLLUTION AND REMEDIATION LEGAL LIABILI 01.; In consideration of the indicated adjustment of prem<~: following Policy change(s): ') ~ "- Premium (increase/reduction): $ B. - REMEDIATION LEGAL LIABILITY is es not apply to REMEDIATION EXPENSE for POLLUTION CONDITIONS on, at or nd the location(s) stated in Remediation Legal Liability Schedule even if such MED TION EXPENSE is incurred to prevent POLLUTION CONDITIONS from emanating from location(s) stated in the Remediation Legal Liability Schedule. All other terms and conditions remain the same. ENSTE777 (9/02) \0, 2002, XL Environmental, Inc. ENDORSEMENT # This endorsement, effective 12:01 a.m., forms a part of Policy No. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CA MODIFICATION OF POLLUTION CO PROPERTY DAMAGE, DIVESTEU PR AUTOMATIC EXTENDED REPORTING PERI issued to by POLLUTION AND REMEDIATION LEGAL LIABI TY 1. Section II. DEFINITIONS, De entirety and replaced as follows: IS deleted in its M. is deleted in its entirety and physical injury to or destruction of tangible property, including the personal property of third parties, including the resulting loss of use thereof; or loss of use of such property that has not been physically injured or destroyed; or 3. diminished third party property value 4. NATURAL RESOURCE DAMAGE provided that such physical injury or destruction, loss of use, diminished third party property value and NATURAL RESOURCE DAMAGE are caused by POLLUTION CONDITIONS. PROPERTY DAMAGE does not include REMEDIATION EXPENSE. ENSTE778 (9/02) 11:>, 2002, XL Environmental, Inc. Page 28 Section II., DEFINITIONS, is amended by the addition of the following: 3. Section V. EXTENDED REPORTING PERIOD, Item A. is de follows: NATURAL RESOURCE DAMAGE means physical injury to or destruction of, inclu resulting loss of value of land, fish, wildlife, biota, air, water, groundwater, drinkin wa supplies, and other such resources belonging to, managed by, held in trust by, appertaining t or otherwise controlled by the United States (including.the resources of the fis con . zone established by the Magnuson-Stevens Fishery Conservation and M a men U.S.C. 1801 et. seq.)), any state or local government, any foreign g em en!; any atIv American tribe, or, if such resources are subject to a trust restriction 0 ali atio, an me of a Native American tribe. A. Automatic Extended Reporting Period ENSTE778 (9/02) iC, 2002, XL Environmental. Inc. Page 29 ENDORSEMENT # This endorsement, effective 12:01 a.m., forms a part of Policy No. issued to by THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREF LOCATION(S) SPECIFIC ENDORSEME This endorsement modifies insurance provided under the following' POLLUTION AND REMEDIATION LEGAL LIABILITY P It is agreed that the following listed endorsement(s) Endorsement Title Restrictive Coverage B All other te (?~ "-~ (~ '------ ENSTE840 (9/02) I!:l, 2002, XL Environmental, Inc. Location( s) Present or former known landfill and/or airport locations ENDORSEMENT # This endorsement, effective 12:01 a.m., forms a part of Policy No. issued to by THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. MOLD, ROT, OR OTHER FUNGI EXCLUSION This endorsement modifies insurance provided under the following: POLLUTION AND REMEDIATION LEGAL LIABILITY POLICY Section IV. EXCLUSIONS, is modified by addition of the following: Mold, Rot or Other Fungi based upon or arising out of the existence, exposure to, required removal or abatement of mold, rot or other fungi, regardless of whether such mold, rot or other fungi ensues from any cause or condition on, at, under or emanating from or to the location(s) listed in the Pollution Legal Liability and/or Remediation Legal Liability Schedule, including but not limited to any such cause or condition involving the presence, discharge or infiltration of moisture, vapor, water or any other liquid, or any damage related thereto. All other terms and conditions remain the same. ENDORSEMENT # It is agree that Section IX., CONDITIO of the following: issued to This endorsement, effective 12:01 a.m., forms a part of Policy No. by THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT MINIMUM EARNED PREMIUM END This endorsement modifies insurance provided under e folio POLLUTION AND REMEDIATION LEGAL LIAS I is amended by the addition M s made against the INSURED, POLLUTION CONDITIONS are discovered ra is requested from the Company by the INSURED during the Policy Period, Au atic or Optional Extended Reporting Period, if applicable, then the premium shall be considered one hundred percent (100%) minimum earned, and the INSURED may not cancel this Policy. All other terms and conditions remain the same. ENSTE853b (9/02) @, 2002, XL Environmental, Inc. ENDORSEMENT # This endorsement, effective 12:01 a.m., forms a part of Policy No. issued to by THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFUllY. EXCLUSION FOR TERRORISM INCLUDING CERTIFIED ACTS OF TERRORISM PURSUANT TO THE TERRORISM RISK INSURANCE ACT OF 2002 This endorsement modifies insurance provided under the following: POllUTION AND REMEDIATION lEGAL LIABILITY POLICY Section IV. EXCLUSIONS, Item 11. Hostile Acts is delet~ and replaced with the following: 11. Hostile Acts and Terrorism based upon or arising from any consequence, whether direct or indirect, of war, invasion, act of foreign enemy, hostilities (including but not limited to TERRORISM, and whether war be declared or not), civil war, rebellion, revolution, insurrection or military or usurped power, strike, riot, or civil commotion. This exclusion applies regardless of any other Cause or event that contributes concurrently or in any sequence to the lOSS, REMEDIATIOt'ol EXPENSE, lEGAL DEFENSE EXPENSE or any other coverages afforded under this Policy or any endorsements attached thereto. I Section II. Definitions is modified by addition of the following: TERRORISM means the commission or threat of: (1) an act of force or violence; (2) an act otherwise dangerous to any person, property, animals or the environment, including but not limited to the use of or the discharge, dispersal, release, seepage, migration, or escape of any solid, liql,lid gaseous or thermal pollutant, irritant or contaminant including but not limited tci smoke, vapors, soot, fumes, acids, alkalis, toxic chemicals, liquids or gases, hazardous materials, waste materials, including medical, infectious and pathological wastes, electromagnetic fields and lOW lEVEL RADIOACTIVE WASTE AND MATERIAL into or upon land, or structures thereupon, the atmosphere, or any watercourse or body of water including groundwater; (3) an act which disrupts or interferes with any of the following public or private systems: communication, electronic, information, mechanical, delivery or transportation; (4) Any CERTIFIED ACT OF TERRORISM; where the stated or implied purpose or effect of any such act or threat is to cause chaos; t intimidate, coerce or disrupt a government, the military or civilian population or any portion thereof, or any segment of business, industry or the economy; or to further political, ideologica religlo , social or economic objectives; or to express (or express opposition to) a philosophy or ide ogy. CERTIFIED ACT OF TERRORISM means an act certified by the Secretary concurrence with the Secretary Of State, and the Attorne)' General of the Unit the Terrorism Risk Insurance Act of 2002 (PUB.L. 107-297). All other terms and conditions remain the same. e ~~ ENSTE866 (11/02) @, 2002, XL Environmental, Inc. Page 8 PROPOSAL for MONROE COUNTY, FL Terrorism Risk Insurance Act of 2002 TERRORISM QUOTE SUMMARY Line of Business "Certified" Acts "Non-certified" SFP States Following Coverage I Acts Coverage I Fire Terrorism Premium Premium Premium Pollution and Remediation Legal Liability 10% NA N/A (PARL) THE ABOVE TERRORISM PREMIUMS ARE IN ADDITION TO THE QUOTED LINES OF BUSINESS Coverage for Certified and Non-Certified Acts Of Terrorism is optional. Please contact your insurance broker if you have any questions. POLICYHOLDER DISQLOSURE NOTICE OF TERRORISM INSURANCE COVERAGE You are hereby notified that under the Terrorism Risk Insuranqe Act of 2002, effective November 26, 2002, that you now have a right to purchase insurance coverage ~r losses arising out of acts of terrorism, as defined in Section 102(1) of the Act The term "act of terro~sm. means any act that is certified by the Secretary of the Treasury I in concurrence with the Secretary of IState, and the Attorney General of the United , States-to be an act of terrorism; to be a violent act or an actl that is dangerous to human life, property; or infrastructure; to have resulted in damage within the United Sta~s, or outside the United States in the case of an air carrier or vessel or the premises of a United States rinission; and to have been committed by an individual or individuals acting on behalf of any foreign person or foreign interest, as part of an effort to coerce the civilian population of the United States or to influence the policy or affect the conduct of the United States Government by coercion. Coverage under your existing policy may be affected as follows: YOU SHOULD KNOW THAT COVERAGE PROVIDED BY ,THIS POLICY FOR LOSSES CAUSED BY CERTIFIED ACTS OF TERRORISM IS PARTIALLY REIMB~RSED BY THE UNITED STATES UNDER A FORMULA ESTABLISHED BY FEDERAL LAW. UNDER TH S FORMULA, THE UNITED STATES PAYS 90% OF COVERED TERRORISM LOSSES EXCEED NG THE STATUTORILY ESTABLISHED DEDUCTIBLE PAID BY THE INSURANCE COMPANY PR VIDING THE COVERAGE. THE PREMIUM CHARGED FOR THIS COVERAGE IS PROVIDED BELOW ~ND DOES NOT INCLUDE ANY CHARGES FOR THE PORTION OF LOSS COVERED BY THE FEDERAL GOVERNMENT UNDER THE ACT. PROPERTY IN SOME STATES, THE TERRORISM EXCLUSION, MAKES AN EXCEPTION FOR (AND THEREBY CONTINUES YOUR COVERAGE FOR) FIRE lOSSES RESULTING FROM AN ACT OF TERRORISM. THEREFORE, IF YOU REJECT THE OFFER OF TERRORISM COVERAGE, THAT REJECTION DOES NOT APPLY TO FIRE lOSSES RESULTING FROM AN ACT OF TERRORISM - THE COVERAGE IN YOUR PROPERTY POLICY FOR SUCH FIRE lOSSES WIll CONTINUE. WORKERS COMPENSATION YOUR WORKERS' COMPENSATION POLICY AFFORDS COVERAGE FOR ACTS OF TERRORISM AND ACTS OF WAR. TERRORISM COVERAGE FOR WORKERS' COMPENSATION POLICIES MAY NOT BE DECLINED. Disclosure Of Federal Participation In Payment Of Terrorism Losses The United States Government, Department of the Treasury, will pay a share of terrorism losses insured under the federal program. The federal share equals 90% of that portion of the amount of such insured losses that exceeds the applicable insurer retention. FOR GEORGIA POLICYHOLDERS ONLY LIMITATION ON PAYMENT OF TERRORISM lOSSES (applies to policies which cover terrorism losses insured under the federal program) The provisions of the Terrorism Risk Insurance Act of 2002 can limit our maximum liability for payment of losses from certified acts of terrorism. That determination will be based on a formula set forth in the law involving the national total of federally insured terrorism losse$ in an annual period and individual insurer participation in payment of such losses. If one or more certified, acts of terrorism in an annual period causes the maximum liability for payment of losses from certified ac~ of terrorism to be reached, and we have satisfied our required level of payments under the law, then Wra will not pay for the portion of such losses above the maximum. However, that is subject to possible change at that time, as Congress may, under the Act, determine that payments above the cap will be made. FOR MISSOURI POLICY HOLDERS ONLY Note: Be advised that while this policy does provide coverage for certain terrorism losses in compliance with the Federal Terrorism Risk Insurance Act of 2002, it does not cover all types of terrorism losses, and in fact, excludes coverage for certain losses, such as those that are the result of a terrorist act that was not committed on ~ehalf of any foreign person or foreign government and exceeds an aggregate cost to the insur~nce industry of $25 million. You are not covered for such losses and this Company does not offer additional terrorism coverage for such losses. FOR AUTO POLICYHOLDERS ONLY In Alaska, Connecticut, Florida, Hawaii, Kansas, Kentucky, New Jersey, New York and Oregon, for liability, Uninsured and/or Underinsured Motorists Coverage and Perso~allnjury Protection Coverage in this state, the terrorism exclusion applies above the minimum limits required for these coverages by the state's Financial Responsibility Statutes and/or Motor Vehicle liability Insurance Statutes. Therefore, if you reject the offer of terrorism coverage, that rejection does not apply to losses resulting from an act of terrorism, for limits up to the minimum state compulsory limits of insurance for liability, Uninsured and/or Underinsured Motorists, and Personal Injury Protection Coverage.