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.