j.k. project group, inc. v. ace american insurance company complaint

8/20/2019 J.K. PROJECT GROUP, INC. v. ACE AMERICAN INSURANCE COMPANY complaint

1/82EXHIBIT 1

https://www2.mianii-dadeclerk.eom/ocs/Viewer,aspx?QS=7nu9WL

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EXHIBIT

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Case 1:15-cv-23984-KMW Document 1-2 Entered on FLSD Docket 10/23/2015 Page 1 of 82


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7. CIV

IL C

OV

ER

S

HEE

T

T

he civil

cov

er

s

heel a

nd

the

info

rmat

ion c

onta

ined

here

in n

eithe

r r

epla

cen

or sup

plem

ent

the filing a

nd

se

rvice

of

plead

ings o

ro

ther

pap

ers as r

equir

ed

by law

.

Th

is

f

orm

s

hall

befiled

by

the

plai

ntiff o

r pe

titio

ner fo

r th

e

u

se

o

f the Cl

erk

of

the C

our

t fo

r the pu

rpo

seof

repo

rting

jud

icial work

load

d

ata

pur

suan

t t

o

Flo

rida

S

tatu

es

s

ectio

n

25.0

75.

I.

CASE STYLE

N T

HE

CIR

CUIT

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OUR

T OF

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LEV

EN

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IAL CIR

CUI

T.

N

AN

D

F

OR M

IAM

I-D

AD

E

CO

UNT

Y. F

LOR

IDA

Ca

se No.:

.

Jud

ge:

.K

.

Proj

ectG

roup

. Inc

.

Pla

intiff

vs.

AC

E

A

mer

ican In

sura

nce

Com

pan

y

D

efen

dan

t

II.

T

YPEO

FC

AS

E

l

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ther re

al

pro

perl

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ns 5

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ondo

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ium

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ntrac

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main

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neg

lige

nce

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igen

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ther

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sine

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vern

anc

e

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arty in

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nific

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mise

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y

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oduc

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ation

Trad

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ust litiga

tion



3/82

COMPLEX

BUSINESS COURT

This action is

appropriate

for assignment

to

Complex Business Court as delineated and mandated

by

the

Administrative Order.

Yes

?No

III.

REMEDIES SOUGHT

(check

all that apply):

J3

Monetary;

?

Non-monetary

? Non-monetary

declaratory or Injunctive relief;

? Punitive

IV. NUMBER OF

CAUSES

OF ACTION: ( )

(Specify)

1

V.

IS THIS

CASE A CLASS ACTION LAWSUIT?

?Yes

M No

VI. HAS

NOTICE

OF ANY KNOWN RELATEDCASE BEEN FILED?

M

No

?Yes

-

f yes

list all

related cases by name, case

number

and court:

IS

JURY

TRIALDEMANDED IN COMPLAINT?

13 Yes

?No

VII.

I CERTIFY

that

the

information

I have

provided in this cover sheet Is

accurate

to

the

best of

my

knowledge

and belief.

Signature

s/

Mariano

RGonzalez FL Bar

No.:

983063

(Bar number, ifattorney)

ttorneyor party

Mariano

R Gonzalez

10/29/2014

(Type

or

print name) Date



4/82

Filin

g

1996

1850 Electron

ically

Filed

10/29/20

14 12:40:

32PM

IN

T

HE C

IRCUI

T

CO

URT

O

F

TH

E

1™ J

UDIC

IAL

CIRC

UIT

IN

AN

D

FO

RM

IAMI-

DADEC

OUNT

Y, FLO

RIDA

GENE

RAL

JU

RISDI

CTION

DIVIS

ION

C

ASE

NO

.

J.K.

PRO

JECT

GROU

P, INC.,

a Flo

rida

Corp

oratio

n.

P

laintiff,

v

A

CEAME

RICA

N INSU

RANC

E

C

OMP

ANY,

a Fo

reign

Corpo

ration

.

Defend

ant.

COM

PLAI

NT

P

laintiff

,

J.K.

PRO

JECTGR

OUP, IN

C. ( J.K

. P

ROJEC

T ), a

Florid

a C

orpora

tion, b

y

an

d

throu

gh u

ndersi

gned co

unsel, h

ereby su

es th

e

Defen

dant, AC

E AM

ERIC

AN INS

URA

NCE

COM

PANY

(

ACE )

, a For

eign

corpo

ration, and

states as

follo

ws:

I

Th

is i

s

an

actio

n

forbrea

ch

of

cont

ract whe

rein P

laintiff se

eks da

mages

in e

xcess

o

f

15,0

00.00.

Plain

tiff,

J.K. P

ROJE

CT, is

a

F

lorida

Corp

oration d

ulyauth

orized

tocondu

ct

busi

ness

2.

in t

he

S

tateof

Fl

orida an

d

o

perates

a gas

stat

ion in

Miam

i-Dade

Count

y,

F

lorida.

Defe

ndant AC

E is,

upo

n info

rmatio

n-

and

b

elief, a co

rporati

on duly

author

ized

to

.

condu

ct

bus

iness in

the

Stateof

Florid

a, and

whic

h

does

,

in fact

,

iss

uepol

icieso

f

insura

nce

in

Miam

i

D

adeCo

unty, Flor

ida.

Defe

ndant

issu

edan insura

nce

policy

toPlain

tiffbea

ringPo

licyN

o.TSPG

2467

859

.

0

01, which

insured

t

he

gas

statio

n locate

d

at

6

776

S

W 1

7 Avenu

e, Mi

ami,

FL3

3183, a

t

al

l releva

nt

tim

es

herein. Polic

y n

umber

TS

PG2467

1859 00 1

i

s hereto

attac

hed as E

xhibit A

.

1



5/82

O

n or

abou

t

A

pril 27,

2010,

wh

ile the sub

ject

polic

y was in fu

ll forc

e an

d effe

ct,

.

Plain

tiffsuff

ered da

mage lo

their

busine

ss as a

re

sult

of

a

r

eleaseof

pe

troleum f

rom an

un

dergro

und

st

orage tank

which co

ntamin

ated

thep

roperty

.

Up

on

inspec

tion

in

A

ugust

20

10,Pla

intiffd

iscove

red

t

hehigh

leve

ls

of

con

tamina

tionb

y

way

of f

ree floa

tingp

roduc

t and

notif

iedDe

fendan

t

of

loss

on

A

ugust 1

0,

201

0.

A

s

such, P

laintif

f

fil

ed a claim

wit

h

De

fendan

t a

nd

s

aid

c

laim

was assig

nedAce

No.:

.

JY

10J04

48470.

7. P

laintiff c

omplie

d

with a

nd perfo

rmed

all cond

itions

pr

eceden

t

u

nder

the subjec

t

p

olicy

for

the

re

coveryo

fben

efits

and/o

r

s

aid cond

itions

were

wa

ived b

y De

fendan

t.

8

Howe

ver, D

efenda

nt,

by

word

, co

nduct

anddeed

, ha s

denie

dcove

rageand h

as re

fused

to pay the

bene

fits d

ue for the

cover

ed loss

.

9

Def

endan

t, th

erefore

,

has

breach

ed the ter

ms

o

f

the subje

ct co

ntract of i

nsuran

ceby

faili

ng to

pay th

e b

enefits wh

ich becam

e due

andowing to

Pla

intiff as

a

result of

the co

vered lo

ss.

1

0 As

a res

ult of

Defe

ndant'

s

b

reach,

Plain

tiff has

suffe

red

damag

es in the

amo

unt

o

f

insura

nce

benefi

ts

dn

e

an

d ow

ing to

them

under the su

bject

policy

.

1

Defen

dant's co

nduct

has c

aused

Plainti

ff

to

retain

th

e servic

es of th

e

under

signed

attorne

y

to rep

resent

them

in this a

ction, an

d D

efend

ant is, the

refore,

also

liable

for rea

sonab

le

atto

rney's

fe

es pursua

nt

to Fla.S

tat. § 627

.428 fo

r

such

servic

es.

WH

EREFO

RE, P

laintif

f, J

.K. PR

OJEC

T GRO

UP, INC.,

a

Florid

a

corp

oration

,

d

emand

s

j

udgme

nt a

gainst

the

Defe

ndant, AC

E

AME

RICA

N

INSU

RANC

E COM

PAN

Y,

a

F

oreign

corpo

ration, for

(i)

dam

ages and

intere

st thereon

, (ii)

attor

ney's fees

a

nd cos

ts

pu

rsuant

to

Fla.St

at.

§

627

.428,

a

nd (iii)

s

uch oth

eran

d

farthe

r r

elief as

this

couit

deems ju

st and p

roper.

2



6/82

DE

MAN

DFOR

JU

RY

TR

IAL

Plainti

ffs

d

emand

a trial

by jury

ofall

issu

es

so

triable a

s o

f rig

ht

by

jur

y.

Dat

ed th is 29

th da y of

Oct

ober 2

014

Law

Off

ices

o

f

Gonz

alez Ass

ociates

,

P.A.

Attorn

ey for P

laintiff

s

3600 Red

Ro

ad, Suite 60

3

Mram

ar, Flor

ida 33025

T

el: 9

54-538

-1304

mail 1:

mg@

gonza

lezlega

l.com

Email

2: jennife

r@gonz

alezleg

al.com

By:

/s/ Marian

o R

. Go

nzalez

M

ariano

R. Gonza

lez,

Es

q.

Florid

a

ar

No.: 98306

3

3



7/82

EXHIBIT

A



8/82

Declarations-

Underground Storage Tanks

LiabilityPolicyCaims-Made

ACE

American Insurance Company

NAMED INSURED

AND

ADDRESS

POLICY IDENTIFICATION

J.K.

ProjectGroup,

Inc.

6776 S.W.

117 Avenue

Miami,FL33183

G24

671859001SP

PRODUCER

CODE: 277240

MARKETING OFFICE: Philadelphia

MARKET

HAZARD CODE: N/A

PIIC CODE:

5541

INDUSTRY

CODE:

N/A

POLICY IS:

OF G24671859

New

NAMED INSURED

IS

:

J.K. Project Group,

Inc.

BUSINESS

OF

INSURED : Misc. - PetroleumStorage

TO

OLICY PERIOD :

FROM 10/01/2009

10/01/2010

At 12:01

A.M.

standard lime

at

your

mailing

address shown above.

IN

RETURN

FOR

THE PAYMENTOF

PREMIUM,

WE

AGREEWTH

YOU

TO PROVIDE

THE INSURANCE

AS STATES

IN THIS POLICY, SUBJECTTO

ALL

THE TERMS AND CONDITIONS

OF

THIS POLICY.

IMPORTANT

NOTICE

THIS

POLICY IS

ISSUED ON

A CLAIMS-MADE

BASIS

COVERAGE

A

OF THIS INSURANCE

DOES

NOTAPPLY TO BODILY INJURY OR

PROPETY DAMAGE , AND COVERAGE B

OF

THIS INSURANCE DOES NOT APPLY

TO

CORRECTIVE ACTION

COSTS ,

WHICH OCCUR

BEFORE

THE RETROACTIVE

DATE

SHOWN

BELOW.

RETROACTIVE

DATE:

10/01/2009

ETROACTIVE DATE:

UW-5X99

(2/97)



9/82

POLIC

Y IDE

NTIFIC

ATION

DEC

LARAT

IONS UN

DERGR

OUND

STORA

GETAN

KLI

ABILITYPO

LICY

CLAIMS-MADE

G

2467185

9 001

SP

a

ge

2

L

IMITSO

F INSU

RANCE

UND

ERGR

OUND

STORA

GET

ANK INC

IDENT

LIMIT

1 000 0

00

AG

GREG

ATE L

IMIT

1.00

0.000

1 000

00 0

E

FENSE

EXP

ENSE

AMOU

NT

DEDU

CTIBLE

S

10,0

00

(Enler amount

of

deductible or

none

ifno ded

uctible

amount

applie

s.)

DEDU

CTIBLE

AMO

UNT

E

PAIDENT

IFICAT

IONAN

DPREM

IUM

PAYM

ENTCO

NDITIO

NS

EPA

IDEN

TIFICA

TION N

UMBE

R (If app

licable

):. As

onfile

with the in

surer

AUD

ITPERIO

D: No

ne

P

AYME

NTFRE

QUEN

CY: A

nnual

PAYM

ENT SCHE

DULE:

N

/A

1,767

.00

Pre

mium:

Florida Hurricane Catastrophe

17.67

15.90

Flo

rida Insura

nce

Guaran

ty Asso

ciation 20

07 R

egular

Asse

ssmen

t

TOTA

LAM

OUNT

DUE

1,800.

57

(Inclu

des 1%Florid

a

0.9% RFIG

A2007

lax)

P

REMIU

MS RE

SULTIN

G FRO

MA

UDITARE N

OT I

NCLUD

ED IN

THEA

BOVE.

SCH

EDULEOFL

OCAT

IONS

LOCAT

ION

NUMB

ERA

NDADD

RESS OF

IN

SURED SIT

E:As

onfile wit

h

th

e

insure

r

4

.

I.

5.

.

6

.

.

UW

-5X99

(2/97

)



10/82

COM

MERC

IAL GE

NERA

L

L

IABIL

ITY

C

G 0042

10

01

U

ND

ER

GR

OU

ND ST

OR

AG

E

TA

NK

PO

LIC

Y

DE

SIG

NA

TE

DT

AN

KS

T

HIS FO

RM

PRO

VIDES

CL

AIMS

-MADE C

OVER

AGE.

PLEA

SE

READ T

HE

ENTIR

E FORM

CAR

EFUL

LY.

COVE

RAGE A

OF T

HIS

POLIC

Y P

ROVID

ES BO

DILY

I

NJUR

Y AND

PRO

PERT

Y DAM

AGE

LIAB

ILITY

CO

VERA

GE ON

A

CLA

IMS-M

ADE B

ASIS

. COVE

RAG

E B O

F THIS

POL

ICY

PROV

IDES

COR

REC

TIVE

AC

TION

COS

TS COV

ERAG

E ON

AN IN

CIDEN

T-RE

PORT

ED BASIS

.

THIS

POL

ICY PRO

VIDE

S P

AYME

NTS

FOR D

EFEN

SE E

XPEN

SE W

HICH

AR

E LI

MITED U

NDER

TH

E

P

ROVIS

IONS

OF DE

FENS

E EXP

ENSE

PA

YMEN

TS P

ARAG

RAPH 2.

OF

SECT

ION III)

.

Variou

s prov

isions

in thi

s polic

y restr

ict cov

erage

.

R

ead

the e

ntire p

olicy car

efully

to de

termin

e rig

hts, dutie

s and

wha

t

Is

and

is n

ot covere

d.

Th

rougho

ut

this poli

cy the

wor

ds you

and yo

ur re

fer to

the

Name

d Insu

red show

n in the

Decla

ration

s, and

any

othe

r per

son or o

rganiz

ation

quali

fying as a

Named

Insure

d und

er this

po

licy. T

he

w

ords

we

, us

and our

refer to the company providing

this

insurance.

The

word

insu

red m

eans an

y pers

on

or o

rganiz

ation

quali

fying as such

un

der Se

ction I

I

Who

Is An Insu

red.

The phras

e firs

t Nam

ed I

nsured

mean

s the fir

st pe

rson or

orga

nizatio

n list

ed as a N

amed

Ins

ured in

the Dec

la

r

ations.

Oth

er w

ords and p

hrases

that

appe

ar in qu

otation

marks

have

s

pecial mea

ning.

Ref

er to Secti

on Vi

Defi

nitions

.

(c) A

claim

for

dama

ges beca

use

of the

bodily inju

ry o

r p

roper

ty dam

age Is

fi

rst made

again

st any in

sured

, in

writ

i

ng, in

acco

rdance w

ith P

aragra

ph (3)

b

elow,

durin

g

th

e

po

licy period o

r an

y

Exte

nded R

eporti

ng Perio

d we

provid

e

unde

r

Se

ction V

Ex

tended

Rep

orting

Period

s.

3)

A

claim

by a

person

or organization

seek

ing

dam

ages

w

ill

be d

eemed

to

have

b

een

m

ade

at the

ea

rlier of the

foll

owing

times

:

a

) Whe

n

notice

of

su

ch

claim

is rec

eived

an

d record

ed

by a

ny in

sured or by

us,

whic

heverc

omes fir

st; or

(b)

Whe

n

we

m

ake a s

ettleme

nt in

acco

r

danc

ew

ith Para

graph

3.

b

elow.

All c

laims for

da

mages be

cause

of

bod

ily

inju

ry to

the

sam

e

per

son,

inc

luding

dam

a

ges cl

aimed b

y any pe

rson

or

organi

zation

f

or care,

loss

of

servic

es or deat

h

resulti

ng

at an

y

time

from

the

b

odily injury

, will

be

de

emed to

have b

een m

ade at the

time th

e

first

of

those claims is made against any

in

sure

d.

SECTI

ON

UNDE

RGRO

UND ST

ORAG

E TA

NK

COV

ERAG

E

1. Ins

uring Ag

reem

ent

a.

Cove

rage

ABodil

y Injur

y

AndPr

operty

Dam

age L

iabili

ty

(

1)

W

e

w

ill pay

t

hose sum

s tha

t

the Ins

ured

be

comes

l

egally obl

igated

to pay

as co

m

pensatory damages because

of

bodily

in

jury

or

prop

erty da

mage

to wh

ich

this in

sura

nce ap

plies.

2

) Th

is ins

urance

appli

es to

bodi

ly injury a

nd

prope

rtyda

mage

only if:

a T

he bod

ily

injur

y or

proper

ty dam

age

is

ca

used by

an u

ndergr

ound s

torage

tank

incide

nt that

com

menc

es o

n

or

af

te

r th

e Ret

roactiv

e Dale

sh

own

i

n

the

De

clarat

ions of

this

po

licy

and

before

th

e end

of

t

he

policy period;

b

) T

he i

nsured

s re

spons

ibility to

paydam

ag

es beca

use

of

bodil

y injury

o

r

prop

erty

dam

age

is de

termin

ed

i

n a

s

uit

on

the

merits

in the

coverage territory

or in

a

settl

ement

we agree

to; a

nd

© ISO

Pro

perties

, Inc.

, 2000

Pa

ge o

f 12

CG

004

2 10 0

1



11/82

(4) The

amount

we

will

pay

for damages be

cause

of

bodily injury or properlydam

age (Coverage A)

or for

corrective action

costs

is limited

as

described

in Paragraph

1. of

Section

III

-Limits Of Insurance.

All claims for damages

because

of prop

erty

damage causing

loss to

the

same

per

son

or organization as a result of an un

derground storage

tank

incident

will be

deemed to

have

been made at the time

the

first

of

those claims is made against any in

sured.

(4) The amount we will pay for damages be

cause

of

bodily

injury or property dam

age

or for corrective action

costs

(Cov

erage B) is limited as described in

Paragraph 1.

of

Section III

-Limits Of

In

surance.

b.

Coverage

B

-Corrective Action Costs

(1)

We will

pay

those

sums the Insured be

comes legally obligated to pay for correc

tive action costs

to which this

Insurance

applies as a result of

an

underground stor

age

tank

incident .

(2)

This insurance applies only if:

(a) An underground storage tank incident

commences on

or after

the Retroactive

Date shown in (he Declarations of

this

policy and before the end of the policy

period; and

(b) Such underground storage

tank

inci

dent

is reported in

writing,

in accor

dance

with

Paragraph (3) below, during

the policy

period or any Extended

Re

porting Period we provide under Section

V-

Extended Reporting

Periods.

(3) An

underground storage tank

incident will

be considered reported at

the

earliest time:

(a) You

report

to us.

in

writing, an under

ground storage tank Incident ;

(b) You

report to

an

implementing

agency , in writing, an underground

storage tank

incident ; or

.

(c) You

receive

a written

notice

from

an

implementing agency

which requests

or

demands

that

you

take

action

due to

an underground storage tank incident .

2. Exclusions

This

insurancedoes not

apply

to:

a. Expected Or

Intended injury

Bodilyinjury or property

damage

expected

or intended

from

the

standpoint of the

insured.

b.

Contractual

Liablity

Bodily injury or

property

damage

for which

the insured is obigated to

pay damages

by

reason of the assumption of liablity in a con

tract

or agreement. This

exclusion

does not

apply to liability for

damages

thai

the

insured

would

have

in

the absence

of the

contract or

agreement.

c. Workers' Compensation And Similar

Laws

Any obligation of

the

insured

under a workers'

compensation,

disability

benefits

or unem

ployment compensation lawor any similar

law.

d. Employer's

Liability

Bodily

injury to:

(1) An employee of the insured arising out of

and in the course of:

(a) Employment bythe insured; or

(b) Performing duties related to the

conduct

of the

insured's business; or

(2) The spouse, child, parent, brother or sister

of

that employee as a consequence of

Paragraph (1) above.

This

exclusion

applies:

(1)

Whether the insured may be liabe as

an

employer or

in

anyother capacity; and

(2)

To any obligation to share damages with or

repay someone eise who must pay

dam

ages because

of

the injury.

© ISO

Properties,

Inc., 2000

Page 2

of

12 P

G

00 42 10 01



12/82

3.

O

ur Ri

ght And Duty

To Defen

d

W

e

wil

t have the

right and

duty

to

defe

nd the in

sured

aga

inst any suit

seeking

damages b

e

cause

of b

odily injury or

property

damage to

w

hich

this

ins

urance

a

pplies,

or se

eking the pay

ment

of

corrective action costs

to which t

his

in

suranc

e applies, and to

pa

y

or

reim

burse for de

fense e

xpense as

provided u

nder Pa

ragraph 2. of

Sect

ion

III

Limits

Of

Insur

ance

a

nd

Defense Ex

pense

Amount and

P

aragraph

4.

Defense

Ex

pen

se Pa

yments

b

elow.

However, w

e

will have no duly to

defend

th

e In

sured

against,

or

to

p

ay or reimbu

rse for de

fense

expens

e for, s

uits seekin

g

dam

ages, or se

eking

the pa

yment of

corrective action cos

ts , n

ot

co

v

ered

by this policy.

We

m

ay at our discr

etion inves

tigate any und

er

ground sto

rage t

ank incide

nt

and

settle

any suit

or

claim for

bo

dily

inju

ry , pro

perty dam

age or

corrective action c

osts

that may

resu

lt.

Ou

r

d

uty to d

efend and to pay or

reimburs

e for

defens

e expense

i

s limit

ed

a

s described in

Para

grap

h

2

. of S

ection III Lim

its

Of

Ins

urance and

Defense

Expense

Am

ount

and P

aragraph

4.

De

fen

se Exp

ense Pa

yments belo

w

and

ends at

the

earlier of

the following ti

mes:

a. Wh

en we have used

up

the

a

pplicable lim

it of

insura

nce

fn

the payme

nt of judgm

ents

o

r set

tlem

ents, or pa

yments or r

eimburseme

nts for

co

rrective action costs ;

or

b. Wh

en we hav

e

used

up the

Defen

se Expense

A

mount in p

ayments or

reimbursem

ents of

defense

e

xpense .

This

applies both

to cl

aims

or su

its pendi

ng

a

t

that

lime

and

(hose

Hied

thereafter.

4.

Defense Expe

nse Paymen

ts

Defens

e expen

se payme

nts or reim

bursements

are sub

ject to

the

D

efense

Expense

Amount

shown

in th

e

D

eclarations of th

is policy.

Th

is

ap

plies

e

ven

if,

by mutu

al agreem

ent or court order,

t

he

in

sured

assum

es control of the

defe

nse

of a

suit

before the

Limit

Of

Insuran

ce

or

the De

fense

Ex

pense

Amo

unt

is used

up.

If

no

Defense Ex

pense Am

ount is sho

wn

in

the Declarat

ions o

f this

policy, the Defens

e

Expense Amo

unt shall be

equal to the

Aggregate

Lim

it

sho

wn in

the Decla

r

ations

of this policy

. If the insured

assume

s

con

trol of the

defense bef

ore the Defense

Expense

Amount

is

used

up,

we will r

eimburse

the insured,

or

pay, for reaso

nable defe

nse

expense , but o

nly

up

to the re

maining Def

ense Expen

se Amo

unt

then

available

.

e.

D

amageToProperty

Property

dama

ge

to:

(1) Property you

own, rent

or occupy,

Including

any costs o

r

expenses inc

urred

by

yo

u,

or

any

other

pe

rson,

organizati

on

or

entity, f

or

repair,

replacement enhancement restora

tion or ma

intenance

of

s

uch prop

erty

f

or

any reason, inc

luding preve

ntionof

Injury to

a person

ordamage

to anothe

r's

p

roperty;

(2)

Premi

ses you sel

l, give

awayor ab

andon, if

the

prope

rty damag

e arises out o

f any

part of t

hose prem

ises;

(3) Propert

y

l

oaned

to you;

or

(4)

Person

al

p

roperty

in the care, cus

tody or

contr

ol of the

insured.

f.

F

ailureT

o ComplyW

ith

En

vironment

al

Law

s

Bod

ily injury , p

roperty dam

age or

correc

tive

action

costs arising out of an

unde

r

groun

d storage

tan

k incident whic

h res

ults

from or is

dir

ectly

or

indirectly

attributabl

e to

failure to

comply

w

ith a

ny applic

able

statu

te,

regulation, ordinanc

e, direct

ive or o

rder

re

lat

ing to

the

pro

tection

of the env

ironment an

d

promu

lgated

by

an

y governmen

tal

bo

dy,

pro

vided

that

fa

ilure

to

com

ply is

willful or delib

erate

act orom

ission of:

(1)

T

he Insured;

or

(2)

Yo

u or

any of you

r members

, managers,

p

artners or

exec

utive officers .

g.

C

orrectiveActio

ns

Corrective

actio

n

costs

o

r

any o

ther e

x

penses

(

1) R

esulting fr

om

any

u

nderground

storage

tan

k inciden

t

which

is in

tended

from the

sta

ndpoint

o

f the insured

;

(2)

Resulting from ac

tions

taken to

report,

inv

estigate

or

confirm

a release

;

(3) To repair, rep

lace or upgr

ade a

ny insured

tank ;

(4)

Which are fin

es or pena

lties imposed

by a

federa

l,

state or

loca

l

gov

ernmental auth

or-

ity

;

(5)

T

o r

eplace the con

tents of an

insure

d

tank

; or

(6)

Which are part of

your

restoration,

en

han

cement or

routine ma

intenance

of any

insured ta

nk or

of

th

e site whe

re

any

in

sured

tank is located.

© ISO

Propertie

s, Inc., 2000

Page 3 12

CG

00

42

10

01



13/82

d.

An

organization other

than a partnership, joint

venture or limited

liability

company, you are an

insured.

Your

executive

officers

and

directors

are

Insureds,

but only

with

respect to their du

ties as your officers or

directors.

Your stock

holders are also insureds, but onlywith respect

to

their liablityasstockholders.

2, Each

of

the following

is

also

an insured:

a.

Your

employees ,

other

than

either

your ex

ecutive officers (if you

are

an organization

other

than

a partnership, Joint

venture or

lim

ited

liablity

company) oryour

managers (if

you

are a

limited

liability company),

but

only for

acts within

the

scope of their employment

by

you

or while performing duties related to the

conduct of

your

business. However, none of

these employees Is an insured for:

5. Supplementary Payments

We will pay, with

respect

to any

claim

we Investi

gate or

settle

or any suit

against

an

insured we

defend, or

any

claim or suit

to

which this insur

ance applies and

for

which an

applicable limit

of

insurance

is

available

for payment

of

damages or

corrective

actioncosts :

a. All interest

on

the

full

amount of any judgment

that accrues

after

entry of

the judgment and

before

we

have paid, offered

to pay,

or depos

ited

in

court the part of the judgment that is

within the

applicable limit of insurance.

b.

Expenses

incurred by the

insured for first

aid

administered to others at

the

time of an un

derground storage

tank

incident for bodily

in

jury towhich this insurance applies.

c.

Prejudgment interest

awarded

against

the

insured on

that part of the judgment we pay. If

we make an

offer

to pay the applicable limit

of

insurance,

we will

not pay any

prejudgment

in

terest based on that period

of

time after the of-

(1)

Bodilyinjury :

(a) To you, to your partners

or

members (if

you are a partnership or joint venture),

to

your members (if

you are

a limited li

ability company), or to a

co- employee

while

that

co- employeen is

either in the

course of his

or

her employment

or

per

forming duties

related

to

the

conduct of

your business;

(b) To the spouse, child, parent, brother or

sister of that co- employee as a conse

quence

of

Paragraph

(1)(a)

above;

or

(c) For which there is any obigation to

share damages with or repay someone

else who

must pay damages

because of

the injurydescribed in Paragraphs

(1)(a)

or (b) above.

(2)

Property damage

to

property:

(a) Owned,

occupied or

used

by,

(b) Rented to, in

the care,

custodyor con

trol

of,

or over which physical control is

being exercised for

anypurposeby

you, any of

your employees , any

partner

or member (if

you

are a

partnership

or joint

venture), or

any

member (if

you

are a

lim

ited liability

company).

fer.

These amounts will

not reduce

the

Limits

Of

In

surance

or

Defense Expense Amount

as

provided

under Section IN.

6. No Other

Obigation

Or Liablity

No

other obligation

or

liablity

to

pay

sums or

to

perform acts or services is covered unless explic

itly

provided for

in

this policy.

SECTION II-WHO

IS AN INSURED

1. If

you

are designated in the Declarations

of

this

policyas:

a.

An individual, you and your spouse are

in

sureds, but

only with respect

to

the

conduct

of

a

business ofwhich

you

are Ihe

sole

owner.

b.

A partnership or

joint

venture, you are an in

sured. Your members, your partners and their

spouses

are also insureds, but only with re

spect to the

conduct of your business.

c. A limited liability company, you are an

insured.

Your members

are

also insureds, but only

with

respect to the

conduct of

your business.

Your

managers are

insureds,

but

only

with respect

to their

duties as your managers.

©

ISO Properties, Inc., 2000

Page

4 of 12

?

G 00

4210 01



14/82

If

Ih

e

sum

of dama

ges

and

corre

ctive action

costs

is less

than the

Undergro

und

Stor

ageTa

nk

I

ncident

Limit, w

e will pay

all of an

y

deduct

ible

am

ount, if

applicab

le,

to

effec

t sett

lement

o

f any

claim or suit .

Upo

n

not

ice

of our

paymen

t

of

a

deduc

tible amoun

t,

y

ou

shall promptly

reimbu

rse

us

for

the part

of

the

deductible amount

we paid.

Each p

ayment we

m

ake for

damages or

for cor

rec

tive action co

sts reduces

both the

Under

ground S

torage T

ank In

cident

Limit and

(he

Ag

g

regate

Limi

t.

The

Limits Of

Insuranc

e

o

f th

is policy appl

y sepa

rately to each

consecut

ive

a

nnual

p

eriod an

d to

any

remain

ing

perio

d

of less t

han 1

2

months

,

sta

rting with

the begi

nning of Ihe

poli

cy

period

sho

wn in the D

eclaratio

ns, unless

the

pol

icy pe

riod

is extended

aft

er issu

ance for an addi

tional

perio

d

of les

s

than 12

months. In th

at case

, the

additio

nal

period

w

ill

be de

emed part

of

the la

st

p

receding p

eriod

for purposes

of dete

rmining

Ihe

Limits

Of

Insurance.

2.

D

efense

E

xpense A

mount

a

.

The Defense

Expen

se

A

mount as

desc

ribed in

Paragra

ph 4. of

Sectio

n

I

Defens

e Expense

Paymen

ts is the mo

st

we a

re obliga

ted

to

pay

for defen

se

expense

,regard

less

o

f the num

ber of

:

(1) Insured

s;

(2)

P

ersons o

r

organiz

ations

mak

ing

claim

s

or

br

inging

suit

s ;

(3)

Claimsm

ade

or

suits

bro

ught; or

(4) Undergr

ound

storag

e tank

in

cidents .

b.

Each

paym

ent or r

eimburse

ment we ma

ke for

defense expense reduces

(he

Defense

Ex

pense

Amount

but wi

ll

not reduce the

Li

mits Of

Insuranc

e.

c. The

Def

ense

E

xpense

Amou

nt is not subje

ct

to

a

ded

uctible,

if

applicabl

e.

d

. The

Defen

se

Expe

nse

Amount applie

s sepa

rate

ly

to

each conse

cutive an

nual p

eriod and

to an

y re

maining p

eriod

of

less

than

12

month

s,

starting with the

beginn

ing of (he

pol

ic

y period

sho

wn in the

Declar

ations, un

less

the

policy

perio

d I

s ex

tended

after issuance fo

r

an

addi

tional peri

od

of less than

12

mo

nths. In

that case,

the

add

itional

perio

d

will

be deemed

part of

the last

prec

eding peri

od

f

or

p

urposes

of d

etermining

the Defe

nse Expense

Amou

nt.

b

. Any

per

son or o

rganizatio

n having

proper

tempor

ary custody of

your

pr

operty

if you

die,

but

only:

(1)

With

respect to

liability aris

ing out of

the

m

aintenan

ce

or use

of

that

pro

perty;

and

(2) Until

your

legal

representative

has been

ap

pointed.

c. Your legal

represen

tative

if

you die,

bu

t only

with respec

t to

duties as suc

h. That r

epresen

tative

will

ha

ve

a

ll y

our

rights

and dutie

s

under

this polic

y.

No person or

o

rganizatio

n

is

an Insured w

ith

re

spect

to

th

e

conduc

t of any

current or

past pa

rt

nership

, join

t

ventur

e

o

r

limited liability

c

ompany

that

is

not sh

own as

a Named Ins

ured in

the Dec

larations of

this

pol

icy.

SE

CTION III L

IMITS O

F INSU

RANCE A

ND

DEF

ENSE EX

PENSE

AMOUN

T

1.

LimitsO

f Ins

urance

a. Th

e Lim

its Of Insur

ance

s

hown

in

th

e

Declara

tion

s of this p

olicy

a

nd the ru

les

below

f

ix the

mos

t

w

e

will

pay regardless

of the

n

umber of:

(1) Insured

s;

(2

) Pers

ons o

r organ

izations

making claims

or

bri

nging suit

s ;

(3)

Cla

ims made or suits

brough

t;

or

(4) Req

uests o

r

deman

ds made by

imple

ment

ing

agencie

s seeking

co

rrective

ac

tion

costs

or requ

iring

action by yo

u.

b. T

heAggre

gate

L

imit is the mos

t

wew

ill pay for

the s

um

of:

(1

) All

d

amages becaus

e of all b

odily

injury

and

propert

y

damage

; and

(2)

A

ll corre

ctiveaction costs .

c

. We

will pay da

mages

and corr

ective act

ion

costs

only

for

th

e

am

ount of dam

ages or

cor

rec

tive action

costs wh

ich are

in exce

ss

of

the

deduc

tible

amo

unt, if

any, show

n

in

the

Decla

r

ations.

Subject to the

Aggr

egate

Lim

it

above,

th

e

mos

t we

will

p

ay in any on

e

und

erground

storage

tan

k in

cident for the

sum o

f:

(1

) A

ll damages because

of a

ll

bodily in

jury

a

nd

property

da

mage ;

a

nd

(2)

A

ll correcti

ve action costs

will be the

lesser

of

the eac

h U

ndergroun

d

Storage Tank

Incident Limit

or the

sum

of

thos

e

damage

s and

c

orrective

a

ction

costs .

Page 5

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(3)

Coo

perate with us

in th

e

inv

estigation

o

r

set

tlement of

the cla

im

or

defense a

gainst

the

suit , requ

est or de

mand;

and

(4)

Assist

us, upon o

ur reques

t, in

the en

forcem

ent of any r

ight against a

ny pers

on

or

or

ganization

which

may b

e

liabl

e to th

e

insu

red

because o

f inju

ry

or d

amage

to

which thi

s insuranc

e

may

al

soapply

.

d. With

respect

to Coverag

e A,

no insure

d

w

ill,

e

xcept at th

at ins

ured s own cos

t,

v

oluntarily

m

ake a p

ayment, a

ssume

any oblig

ation, or

incur any ex

pense,

other than

for f

irst aid,

with

out our con

sent.

3.

L

egal Ac

tionAga

inst

Us

SECT

ION IV

CO

NDITION

S

1. Ban

kruptcy

Ba

nkruptcy or

insolve

ncy of the

insure

d

or

of the

insured'

s

e

state

will

n

ot

relieve us

o

f

ou

r

ob

liga

tion

s under this

policy.

2

. Duties I

n The

EventOf

An

Un

dergroun

d

Storage Ta

nk Incident

a. You m

ust see

to it

that

we are notif

ied

promptl

y of an

unde

rground s

torage

t

ank inci

dent

which

may resu

lt

in

a claim, re

quest,

d

emand o

r

p

roceeding

to imp

ose an

obligation

on t

he

insu

red for dam

ages

beca

use

o

f bodily

injury or

prope

rty damage

or f

or correcti

ve

ac

tion

costs . N

otice

s

hould in

clude:

(1) How,

when and

where

the

und

erground

stora

ge ta

nk incide

nt

to

ok place;

(2)

The names

and

address

es of any in

jured

person

s an

d

witn

esses;

and

(3)

The nature

and locatio

n of

any inju

ry, dam

ageo

r rele

ase .

Notice

of

an

u

ndergroun

d storag

e lank inci

de

nt is not

notice

of

a

claim un

der C

overage

A (Sect

ion

I).

N

otice o

f an underg

round

stor

age ta

nk incident

is not a re

port of an und

er

ground st

orage ta

nk inciden

t under

Coverage

B (Sec

tion I)

unless su

ch

n

otice

meets the re

p

orting

requireme

nt provided in

Paragra

ph

1 .b.(3

) under C

overage

B (Section

I)

.

b. I

f a claim is

mad

e

or

suit is bro

ught aga

inst

a

ny

In

sured, or

if

a

reque

st or d

emand is re

ceived f

rom

an impleme

nting agency

requir

in

g a

ction by you,

because of

an

undergro

und

s

torage

tank incide

nt , y

ou must see

to it th

at

we

receive prompt written notice

of

such claim,

s

uit ,

request

or demand

.

c. In

c

onnection with

an

underg

round storage

tank inciden

t ,

you

a

nd any

othe

r

invo

lved in

sured must

:

(

1) Im

mediately

send us copi

es o

f

a

ny re

quests,

de

mands, notices,

summo

nses or

le

gal papers rec

eived

in connect

ion with

the clai

m or suit ;

(2) Auth

orize us

to

o

btain reco

rds

and other

i

nformation

;

No per

son or organiz

ation has

a right

under this

polic

y:

a.

To join us as

a party o

r otherwise

bring us

into

a

suit asking

fordamag

es

from an

insured;

o

r

b.

To sue

us un

der this poli

cy unless all

of its

terms have

been

fully

compliedwith.

A person o

r organi

zation

may sue us

to reco

ver

on a

n agree

d se

ttlement or o

n

a

final

judg

ment

aga

inst a

n

insure

d; but

we will not

b

e

l

iable f

or

damages

or for

correctiv

e

a

ction costs

that

are

not paya

ble unde

r the

terms of t

his policy or t

hat

are

in

ex

cess o

f

t

he appli

cable limit

of

in

surance.

An ag

reed

settlem

ent means

a settl

ement and

re

lease

of liability

signed

by us, the

insured

and

th

e

claima

nt

or th

e cla

imant's legal

represen

tative.

4. O

ther Insura

nce

If oth

er

v

alid

and collect

ible

insurance is

available

to the

ins

ured

f

or

a

loss w

e co

ver

u

nder this

pol

icy

, o

ur

ob

ligations a

re limted

as

follows:

a

.

Pr

imary Ins

urance

This in

surance

Is prim

ary except

when b

. be

low app

lies. Whe

n this

insura

nce is prim

ary,

our o

bligations

are

n

ot af

fected

unless a

ny

o

f

the o

ther

insuran

ce

is also

primary. Then,

we

will

share

with all (

hat other

insura

nce by th

e

metho

d described

in c. below

.

©

ISO

Prope

rties, Inc.

, 2000

Page 6 o

f 1

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c. Method

OfShar

ing

If all

of th

e

other

ins

urance permit

s

c

ontribu

tion by equ

al shares

,

we

will

follow

this

method

also.

U

nder this

approach each

insurer con

tributes

equa

l

amoun

ts un

til

R has pa

id its ap

plicable

limit

of insurance

or

none of the loss

remains, whi

chever

comes first.

if any of t

he

other insurance does

not permit

contribut

ion by

equ

al shares,

we w

ill

cont

ribute

by

lim

its. Under this

method, each

in

surer s

sha

re

is based

on the rati

o of

its

applicabl

e

limit of insurance to th

e total a

pplicable lim

its

of insuran

ce of

all

insurers.

5. Pr

emium udit

a. We wi

ll compu

te

ail

prem

iums for this poli

cy

in

acco

rdancewith ou

r rules and rales.

b. Premiu

m shown in

this po

licy

as a

dvance

premium is a

deposit p

remium only. At the

clos

e of each aud

it period we

will compute the

earned premium for

that

period and send no

tice to

the first

Named Insured. The due

date

for

audit

and

retros

pective premiu

ms is the

date

shown

as the

due

date

on

the bill. If

the

sum of

the advan

ce and audit

premiums pa

id

for the

policy

period

is greate

r

tha

n the earne

d

prem

ium, we

will return

the

exces

s

to

Ihe first

N

amed Insured.

c. Th

e first Named Insured

must keep

records

of

the informat

ion we need

for

pr

emium

computa

tion, and

s

end us

c

opies at such

times

as

we

may reques

t.

6. Repr

esentations

By

accep

ting

this policy,

you agree:

a.

The statements

in

the Declarations

of

this

policy are

accu

rate

and c

omplete;

b.

Those statem

ents

are

based upon

representa

t

ions

you ma

de

to

us;

and

c

. W

e have

issu

ed

this polic

y

in relian

ce

upon

your represen

tations.

7.

Separation f

Insureds

Except wi

th respect to

the Limits Of Insurance,

the

Defense

Expense Amount,

and

an

y r

ights or

d

u

ties

specificall

y

assigned in

this

policy to the

first

N

amed In

sured, this insu

rance applies:

a. As if eac

h Named Insu

red were t

he on

ly

Named Ins

ured;

and

b.

Separately

to

each insured

against

whom

c

laim is made

or suit is brought.

b.

Exces

s

In

surance

(1)

This insu

rance is

excess over any

of the

othe

r insur

ance,

whe

ther primary,

excess,

contingent or

on any other ba

sis, that is

ef

fec

tive prior to the begi

nning of the p

olicy

period shown in the

Declarationsof

this pol

icy an

d ap

plies

to

bodil

y

injur

y or prop

erty da

mage o

n other than a c

laims-made

basis

or

corrective action costs o

n oth

er

th

an

an

incident-rep

orted

basis,

if:

a No

Retr

oactive Date

is shown in

the

D

eclarations of this

policy; or

(b)

T

he othe

r insurance has a p

olicy p

eriod

which

continues afte

r the Retroac

tive

Date show

n in

ihe Declara

tions of this

policy.

2

W

hen

this

insuranc

e is exc

ess, we

will

hav

e no

duty under Section

Under

ground

Storage Tank

Covera

ge to defend

the insured

agains

t

an

y suit if any

other

insurer h

as

a

duly to

defend

the insured

against

th

at

su it . If

no ot

her insurer de

fends and the

Defense

Expense

Amount

under

this

policy

ha

s

n

ot been use

d

up,

we

will unde

rtake

to

pr

ovide a defense

In ac

cordan

ce with the

provision

s

of Parag

raph

3.

of

Sect

ion Undergro

und Storage

Tank

Coverage. Ho

wever, w

e will be entitled to

th

e insureds

rights against

all tho

se other

insur

ers.

(3) Wh

en

t

his insura

nce is excess

over o

ther

insuran

ce, we

will

pay

on

ly

our share

of the

am

ount of

the

loss,

if any,

that

e

xceeds th

e

sum

of:

(a) The total

amount

that all such

other

insurance

would pay for

the los

s

in

the

absence of

this

ins

urance; and

(b) Th

e

total

of all deducti

ble

and

self

-

insure

d amount

s

und

er

all

that

other

in

surance

(4) We will share

the

remaining lo

ss,

if

any,

with

any

other insurance tha

t is not de

scribed

in

this

Excess I

nsurance Provision

and w

as not

bought

specifically to apply in

excess

of ihe L

imits

Of In

surance shown

in

t

he Decl

arations of this policy.

©

ISO Propertie

s, Inc., 2000

Page

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12.Financial

Responsiblity

And Reimbursement

if

this policy is issued to certify your

compliance

with the Federal Environmental Protection

Agency

financial responsibility requirements imposed on

you as

an

owner or

operator of

an insured tank ,

we will

comply

with

such

financial responsibility

requrements.

You agree to

reimburse us

for

any

payment made by us

on your

behalf which

we

would not have been obligated to make under the

terms of this policy

but for the

agreement con

tained

in the

first

sentence

of this

condition.

8.

Transfer Of

Rights

Of RecoveryAgainst

Others To Us

if the

insured

has rights to

recover

all or part

of

any

payment

we

have made under this

policy,

those rights are transferred to us. The insured

must

do nothing

after

loss to Impair them.

At

our

request, the insured will bring suit or transfer

those

rights to

usand

help us

enforce them.

9.

Policy Issued

To Comply

Wth

Law

Or

Reguation

When requested, we agree to furnish to the direc

tor

of the

implementing

agency a signed

dupli

cate original of this policy and all endorsements

issued with this policy.

10.Cance latlon

a.

The

first Named Insured

may cancel this policy

by

mailing

or

delivering to

us

advance

written

notice

of

cancellation.

b.

We

may cancel this

policy

by sending

by

certi

fied mail, or delivering,

to

you a written notice

at

your last

mailing

address known to us.

Cancellation will be

effective:

(1)

10 days after

you

receive notice

of cancel

lation if we

cancel for

nonpayment

of pre

mium

or

misrepresentation by you; or

(2)

60 days after you receive notice

of

cancel

lation

ifwe cancel forany other reason,

unless we specify a later date in our notice as

the

effective

date of

cancellation.

c. If

this policy

is cancelled, we will send the first

Named Insured any premium refund

due.

If

we

cancel, the refund will be

pro rata.

If

the

first

Named Insured cancels, the

refund may

be

less than pro rata. The cancellation will be ef

fective even

if we

have not made or offered a

refund.

11. Nonrenewal

If we decide not to renew this

policy,

we

will

send

written notice of nonrenewal

to you

at least 60

days

before

the end of the policy period.

We will

send

our

nonrenewal notice by

certified mail, or

deliver it,

to you at

your

last

mailing address

known to us.

13. Examination OfYour Books And Records

We may

examine and audit

your

books and rec

ords

as

they relate

to

this policy at

any

time during

the policy

period

and

up to

three years

afterward.

14. Inspections

And

Surveys

a.

We have the

right,

but are not obligated, to:

(1)

Make

inspectionsand surveys

at

anytime;

(2)

Give you reports

on

the conditions we find;

and

(3)

Recommend

changes.

b. Any inspections, surveys, reports or recom

mendations relate only

to

insurability

and the

premiums to

be charged.

We

do not make

safety inspections.

We

do not undertake

to

perform Ihe duty of any

person or organization

to

provide for the health or safety of workers or

the public.

And we

do

not warrant that

condi

tions:

(1) Are safe

or

healthful; or

(2) Comply

with

laws, regulations, codes or

standards.

c.

This

condition

applies not

only

to

us,

but

also

to

any rating, advisory, rate service or

similar

organization which

makes

insurance inspec

tions, surveys, reports

or

recommendations.

© ISO

Properties,

Inc.,

2000

Page

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18/82

b.

When either of

the

following

has

occurred:

(1) A limit of insurance has actually

been

used

up in the payment of

judgments

or

settle*

menls for damages or In the payment

of

correctiveactioncosts ; or

(2)

The Defense Expense

Amount

has

actually

been used

up

in the

payment or

reim

bursement

of

defense

expenses ,

we will:

(a) Notify the

first

Named Insured in writing,

as soon as

practicable, that:

(i)

Such a

limit has actually been used

up and that

our

duty

to

defend the

insured against suits seeking

dam

ages

subject to

that limit has also

ended;

or

(ii)

The Defense

Expense Amount

has

actually

been used up and

that our

duty to defend

the

insured against

any

suit ,

seeking damages

has

ended,

whichever Is

applicable.

(b) Initiate, and cooperate

in,

the transfer

of

control, to any

appropriate

insured, of

15. Premiums

The

first

Named

Insured

shown in the Declara

tions:

a. Is

responsible for the payment

of all

premiums;

and

b.

Will

be the payee for any return premium we

pay.

16. If

You

Are

Permitted

To

Retain Defense

Counsel

If

by mutual agreement or

court

order

the

Insured

is given the

right

to retain defense counsel and

neither

the

Limit Of Insurance

nor

the

Defense

Expense Amount has

been

used up, the following

provisions

apply:

a.

We retain

the

right,

at

our discretion,

to:

(1) Settle,

approve

or

disapprove the settle

ment

of

any claim or

suit ; and

(2)

Appeal

any

Judgment, award or

ruling

at

our

expense.

b. You

and

any

other involved

insured must:

(1) Continue

to comply

with the Duties In The

Event

Of An Underground

Storage

Tank

incident Condition (Paragraph 2. of this

section) as well as

the other

provisions

of

this

policy; and

(2)

Direct defense counsel of the insured to:

(a)

Furnish us with the

information

we

may

request to evaluate suils

under

this

policy for those suits ; and

(b) Cooperate with any counsel

we

may

select to

monitor

or associate

in the

de

fense of those suits .

17.Transfer Of Duties When

A Limit

Of

Insurance

Or

The Defense

Expense

Amount Is

Used

Up

a.

If we

conclude that,

based on

underground

storage tank

incidents ,

claims

or

suits

which

have

been

reported

to

us and

to

which

this

in

surance may apply:

(1)

A limit

of

insurance is likely

to

be

used

up

in the payment

of

judgments or settlements

for

damages

or in the payment of correc

tive action costs ; or

(2) The Defense Expense Amount is likely

to

be used

up

in the payment or reimburse

ment of defense expenses ,

we will

notify

the

first

Named

Insured,

in writ

ing, to that effect.

all:

(i)

Caims;

and

(ii)

Suits

for which

the

duty lo defend

has

ended

for the

reason

described

in b.(1)

orb.(2)

above

and

which

are

reported to

us before

that

duty to defend ended.

(c) Take such

steps, as

we deem

appropri

ate, to

avoid

a

defaut

in,

or

continue

the

defense of,

such

suits until

such

transfer

is completed, provided

Ihe ap

propriate insured Is cooperating in

com

pleting

such

transfer.

c.

When

either b.(1) or b.(2) above has occurred,

the

first

Named insured, and any

other

insured

involved in a suit seeking damages

subject

to

that

iimit,

must:

(1)

Cooperate in the transfer of control

of

claims and suits ; and

(2)

Arrange

for the defense of such suit

within such lime period as agreed

to

be

tween the appropriate

insured

and us. Ab

sent any such agreement, arrangements

for

the

defense

of

such

suit mustbe made

as

soon as practicable.

Page 9 of 12

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(ii) Cooperate with any counsel we may

select

to

monitor or

associate in de

fense of those suits .

(3)

Vouhave the

right to settle

anyoutstanding

or additional

claims or suits . However, our

obligation to pay for such

a

settlement

is

limited

to

the amount within

or

up

to

the

available limit

of

insurance.

g.

The exhaustion

of:

(1) Anylimit of

insurance by the payment of:

(a) Judgments or settlements for damages;

d.

We

will take no action with respect to defense

for any

claim

or

suit if

such

claim or suit is

reported

to

us after:

(1) The

applicable

limit of insurance has been

used

up,

even

if

the Defense Expense

Amount

has not

been used up;

or

(2)

The

Defense Expense Amount has been

used

up,

even

if

the limit of insurance

has

not

been used up.

When

either

d.(1) or d.(2) above

has

occurred,

it becomes the responsibility of the first Named

Insured, and any other insured involved in

such a claim or suit ,

to

arrange

defense

for

such

claim or

suit .

e. The first

Named Insured

will

reimburse us for

expenses we

incur in

taking

those steps

we

deem appropriate in accordance with Para

graph

b.

above.

The duty of the

first Named Insured to

reim

burse us will begin

on:

(1) The dale

on

which the

applicable

limit of

insurance is used up. if

we

sent notice in

accordance

with

Paragraph

a.

above; or

(2) The

date

on

which we sent notice

in

accor

dance

with Paragraph

b.

above,

if we did

not send notice in accordance with Para

graph a.

above.

f.

If a limit

of

insurance is available for

payment

of

damages or

corrective

action

costs , and

If

our duty to defend the insured against suits

and to pay defense expenses has

ended

be

cause we have

used

up the Defense Expense

Amount

and we have

transferred the control

of

defense

of

suits to you, the following

provi

sions apply:

(1) We retain

the right, at our

discretion,

to

appeal

any judgment,

award

or ruling

at

our

expense.

(2)

Youand

anyother involved insured must:

(a)

Continue to

comply

with the Duties In

The Event

Of An Underground Storage

Tank

Incident

Condition as well as the

otherprovisions

of this

policy;

and

(b) Direct defense counsel of the insured to:

(I)

Furnish

us with the information we

may

request to evaluate suits and

coverage under this policy for those

suts ; and

or

(b)

Corrective action

costs ; or

(2) The

Defense Expense

Amount

by the pay

ment or

reimbursement

of defense

ex

penses ,

and the

resuting end ofour duty

to

defend, will

not be affected by our

failure

to

comply

with

any of the

provisions of

this Condition.

SECTION

V-

EXTENDED REPORTING

PERIODS

1. We

will

provide

one or more

Extended

Reporting

Periods, as

described below, if:

a. This policy is cancelled or

not

renewed; or

b. We renew or replace this policy

with

insurance

that:

(1)

Has

a Retroactive

Date

later than the

date

shown in the Declarationsof this policy; or

(2) Does not

apply to bodily injury or prop

erty damage

on

a claims-made

basis or

corrective actions

costs1' on an

incident-

reported

basis.

2.

Extended Reporting Periods

do not

extend

the

policy period

or change

the scope of

coverage

provided. Theyapplyonlyto claims for:

a. Bodily

injury

or

property

damage caused

by; and

b. Corrective

action costs which result from

an

underground

storage

tank incident that com

menced before the

end

of the policy period, but

not before

the Retroactive Dale, if any, shown in

the

Declarations.

Once

in effect, Extended

Reporting Periods

may

not

be cancelled.

©

ISO

Properties,

Inc., 2000

Page 10 of 12

?

G 00 42 10 01



20/82

c.

The

i

nsurance

provided under th

e Supplem

en

tal Exte

nded

Reportin

g

Period

End

orsement

will be

excess

o

ver any

other valid and

col

lectible insura

nce av

ailable

to

the insured,

whether p

rimary,

excess, continge

nt o

r

on any

othe

r

basis

,

wh

ose pol

icy

period

begins

or

con

tin

ues after th

e endorsement

takes

effect,

Parag

raph

4.b.

of

Othe

r

Insuran

ce in Sect

ion

IV

Conditions will be

amended

accordingly.

d.

If th

e

S

upplemental

Exte

nded Reportin

g

P

e

riod is in effe

ct, we will

provide t

he

Suppl

e

mental

Aggregat

e Limit

a

nd a

Sup

plemental

Def

ense Expen

se

A

mount as

described below

,

but only

for claims first receiv

ed and

recorded

under

Coverage

A

and

incide

nts reported u

n

der C

overage

B

du

ring

the Supple

mental

Ex

tended

Reporting Period.

The

Sup

plemental Aggre

gate Limit Of Insur

an

ce will be

eq

ual to

thedollar amou

nt show

n

in

the Dec

larations In

effect at the end

of the

polic

y

perio

d fo

r

th

e

Ag

gregate Limit.

The Sup

pleme

ntal Defense

Expense A

mount wi

ll

be

equal

to

the d

ollar amount

shown in the Decla

rations in

effect at the

end of th

e policy period

for the

D

efense Expen

seAmou

nt.

Paragraph

s 1.b. and

2. of Section

III

Limits

Of Ins

urance A

nd Defense Exp

ense A

mount

will beamen

ded according

ly.

SECTIONVI

DEF

INITIONS

1.

Bodi ly

Injury

means b

odily injury,

sick

ness or

dis

ease

sustaine

d by

a

person, including d

eath re

sulting

from

any

of

these

at any

tim

e.

2. Corrective ac

tion

costs mean

s reasonable and

necessary

expenses

incurred by y

ou in response

to

a

confirmed underground

storage

tank

inci

den

t for

co

rreclive

aclio

n

as

specified in

40

CFR

Sect

ions 280.60-2

80.67 and 40

CFR Section

280.72 promulgate

d by

the Federal

Environme

ntal

Protection

Agency (EPA).

3

. Covera

ge

territo

ry means

the

U

nited

States

j.k. project group, inc. v. ace american insurance company complaint

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