Resolution No. 2010-045RESOLUTION NO. 2010-45
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND AUTHORIZING THE PROCUREMENT OF
POLLUTION LEGAL LIABILITY INSURANCE FROM GREAT
AMERICAN INSURANCE GROUP THROUGH ARTHUR J.
GALLAGHER & CO.
WHEREAS, the City Council of the City of Vernon adopted
Ordinance No. 1067 on December 8, 1998, which added Article VI to
Chapter 12 of the Vernon City Code, establishing a non-exclusive
franchise system for solid waste collection in the City; and
WHEREAS, the City of Vernon developed a Standard Non -
Exclusive Franchise Agreement for Solid Waste Management Services
("Franchise Agreement") for solid waste collection businesses
operating in the City of Vernon; and
WHEREAS, the City's current Pollution Legal Liability
Insurance Policy with Great American Insurance Group ("Great
American") for insurance in excess of insurance coverage required in
the Franchise Agreement has come up for renewal; and
WHEREAS, the City desires to procure the necessary insurance
to protect the City; and
WHEREAS, the City employed the services of Arthur J.
Gallagher & Co. Insurance Brokers of California, Inc., Risk Management
("Arthur J. Gallagher") to act as the City's broker to structure and
obtain the appropriate insurance coverage; and
WHEREAS, Arthur J. Gallagher obtained quotes for pollution
legal liability insurance coverage from three insurance companies, and
has recommended that the City enter into an arrangement with Great
American for the necessary environmental insurance; and
WHEREAS, the Risk Manager has recommended the procurement of
pollution legal liability insurance coverage with Great American; and
WHEREAS, the City Council of the City of Vernon has
determined that, pursuant to the provisions of subsection (b)(1) of
Section 2.27 of the Vernon City Code, it is in the public interest and
necessity to procure the necessary environmental insurance with Great
American through Arthur J. Gallagher.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF VERNON AS FOLLOWS:
SECTION 1: The City Council of the City of Vernon hereby
finds and determines that the recitals contained hereinabove are true
and correct.
SECTION 2: The City Council of the City of Vernon hereby
approves and authorizes the City Administrator, or his designee, to
execute any and all documents necessary for the purpose of securing a
pollution legal liability insurance policy on behalf of the City of
Vernon from Great American pursuant to the insurance proposal
("Insurance Proposalff), a copy of which is attached hereto as
Exhibit A.
SECTION 3: The City Council of the City of Vernon hereby
approves and authorizes the payment of the annual premium of
approximately $18,662.00 plus any applicable excess and surplus line
taxes to Great American for a pollution legal liability insurance
policyin accordance with the terms of the Insurance Proposal.
SECTION 4: The City Council of the City of Vernon hereby
authorizes the City Administrator, or his designee, to take whatever
action is deemed necessary or desirable for the purpose of implementing
and carrying out the purposes of this Resolution and the transactions
herein approved or authorized.
2
SECTION 5: The City Council of the City of Vernon hereby
directs the City Clerk, or his designee; to send a copy of this
Resolution to:
Arthur J. Gallagher.& Co.
Insurance Brokers of California, Inc.
Attn, Nasreen Kopecky, Account Manager
15 Enterprise, Suite 200
Aliso Viejo, CA 92656
SECTION 6: The City Clerk of the City of Vernon shall
certify to the passage, approval and adoption of this resolution, and
the City Clerk of the City of Vernon shall cause this resolution and
the City Clerk's certification to be entered in the File of
Resolutions of the Council of this City.
APPROVED AND ADOPTED this 29th day of March, 2010.
AT T ST:
Willard G.-7apchu,City Clerk
Name: Hilario Gonzales
Title: Mayor /
-3
STATE OF CALIFORNIA )
Ss
COUNTY OF LOS ANGELES )
I, Willard G. Yamaguchi, City Clerk of the City of Vernon, do
hereby certify that the foregoing Resolution, being Resolution
No. 2010-45, was duly passed, approved and adopted by the City Council
of the City of Vernon at a regular meeting of the City Council duly
held on Monday, March 29, 2010, and thereafter was duly signed by the
Mayor or Mayor Pro-Tem of the City of Vernon.
Executed this -)6 day of March, 2010, at Vernon, California.
(SEAL)
4
CITY OF VERNON
March 9, 2010
Mr. Willard G. Yamaguchi
City of Vernon
4305 Santa Fe Avenue
Vernon, CA, 90058
Re: Renewal Policy: Pollution Legal Liability Insurance Renewal
Effective: March 23, 2610 to March 23, 2011
Dear Willard:
Your Pollution Legal Liability policy will be renewing shortly. Attached is out -quotation for coverage. We would
like to outline the following notable points for your consideration:
• The insurance carrier is Great American E & S Insurance Company
• The renewal premium is $18,662 and is subject to a 25% minimum earned premium
• In order to bind coverage we need the following:
➢ Signed forms: Authorization to Bind, D-1 Form,
• The A.M. Best is A IV. Our A.M. Best's Rating Summary is attached for your review. "If the above coverage is
placed with a Non -Admitted carrier, the carrier is doing business in the state as a surplus lines or non -admitted
carrier. As such, this carrier is not subject to the same regulations which apply to an admitted carrier nor do they
participate in any insurance guarantee fund applicable in that state."
• Any entity not named in this proposal may not be an insured entity. This may not include partnerships and joint
ventures.
+ The policy will not be auditable. The premium is based upon number of tanks.
• Defense costs are limited and included within the policy limits.
• See Policy form Section "Exclusions" which are coverages NOT included in your program
• Policy provides coverage for non -owned property Landfill/Transportations ONLY
We are not aware of any changes in your exposures to loss, nor are we aware of any changes in your business
operations that would necessitate additional coverage options. Please notify us immediately if you are planning
any new business operations.
IMPORTANT: The quotation (s) attached constitute certain of the terms and conditions of the insurance
proposed by the insurer(s), based on the information provided by your company. It does not include all the
terms, coverages, exclusions, limitations, conditions of the actual policy contract language. The insurance
policy(ies) themselves must be read for those details. Policy forms for your reference will be made available upon
request.
We appreciate your business and look forward to working with you in the coming year. Please contact me if you
have any questions.
Sincerely
Nasreen Kopecky
Phrblic Ewity and Scludstic Division
CITY OF VERNON
PROPOSED CARRIER RATINGS AND ADMITTED STATUS
ADMITTED
PROPOSED CARRIERS
A. M. BEST'S RATING
NON -ADMITTED
CITY OF VERNON
IMPORTANT DISCLOSURES
The proposal is an outline of certain of the terms and conditions
insurers, based on the information provided by your company.
coverages, exclusions, limitations, conditions of the actual policy
policies themselves must be read for those details. Policy form;
available upon request,
of the insurance proposed by the
It does not include all the terms,
contract language. The insurance
for your reference will be made
We will not be operating in a fiduciary capacity, but only as your broker, obtaining a variety of coverage
terms and conditions to protect the risks of your enterprise. We will seek to bind those coverages based
upon your authorization; however, we can make no warranties in respect to policy limits or coverage
considerations of the carrier. Actual coverage is determined by policy language, so read all policies
carefully. Contact us with questions on these or any other issues of concern.
Terrorism Act Disclaimer: The current TRIA/TRIPRA program may not cover all terrorism losses.
While the most recent legislation eliminated the distinction between foreign and domestic acts of
terrorism, a number of lines of coverage excluded under the TRIEA legislation passed in 2005 remain
excluded, including commercial automobile, burglary and theft insurance, surety insurance, farm owners
multiple perils and professional liability (although directors and officers liability is specifically included).
If such excluded coverages are required, we recommend that you consider purchasing a separate
terrorism policy. Please note that a separate terrorism policy for these excluded coverages may be
necessary to satisfy loan covenants or other contractual obligations.
The information contained in this proposal is based on the historical loss experience and exposures
provided to Arthur J. Gallagher & Co. Insurance Brokers of California, Inc. This proposal is not an
actuarial study. Should you wish to have this proposal reviewed by an independent actuary, we will be
pleased to provide you with a listing of actuaries for your use.
Public Endfy rrnd Scholastic Division
CITY OF VERNON
COMPENSATION DISCLOSURE
One of the core values highlighted in The Gallagher Way states, "We are an Open Society," and our open
society extends to the compensation Gallagher receives. For more information on Gallagher's compensation
arrangements, please visit http://www.ajg.com/compdisclosure. In general, Gallagher may be compensated
as follows:
Gallagher Companies are primarily compensated from the usual and customary commissions or fees
received from the brokerage and servicing of insurance policies, annuity contracts, guarantee
contracts and surety bonds (collectively "insurance coverages") handled for a client's account, which
such commissions and fees may vary from company to company and insurance coverage to insurance
coverage. As permitted by law, Gallagher companies occasionally receive both commissions and -
fees. In placing, renewing, consulting on or servicing your insurance coverages, Gallagher
Companies may participate in contingent commission arrangements with insurance companies that
provide for additional contingent compensation if underwriting, profitability, volume or retention
goals are achieved. Such goals are typically based on the total amount of certain insurance coverages
placed by Gallagher with the insurance company, not on an individual policy basis. As a result,
Gallagher may be considered to
have an incentive to place your insurance coverages with a particular insurance company.
Gallagher Companies may also receive investment income on fiduciary funds temporarily held by
them, such as premiums or return premiums.
3. Gallagher Companies may access other facilities, including wholesalers, reinsurance intermediaries,
captive managers, underwriting managers and others that act as intermediaries for both Gallagher and
other brokers in the insurance marketplace. Gallagher Companies may own some of these facilities,
in whole or in part. If such a facility was utilized in the placement of a client's account, the facility
may have earned and retained customary brokerage commission or fees for its work.
4. Gallagher assists its customers in procuring premium finance quotes and unless prohibited by law
may earn compensation for this value added service.
If you have specific questions about the compensation received by Gallagher and its affiliates in relation to
your insurance placements, please contact your Gallagher representative for more details.
In the event you wish to register a formal complaint regarding compensation Gallagher receives from
insurers or third parties, please send an e-mail to Compensation_Complaints@ajg.com or send a letter to:
AVC Compliance Officer
Arthur J. Gallagher & Co.
Two Pierce Place, 20`" Floor
Itasca, IL 60143
Public EndV and Scholastic Division
8
CITY OF VERNON
CONTINGENT AND SUPPLEMENTAL COMMISSION DISCLOSURE
Effective October 1, 2009, Arthur J. Gallagher & Co., and its subsidiaries operating as insurance brokers
under the corporate holding company known as Arthur J. Gallagher Brokerage & Risk Management Services,
LLC, resumed participating in "Contingent Income Agreements" which are routinely offered by insurance
companies to brokers, after voluntarily foregoing the benefit of this type of compensation since January 1,
2005. In placing, renewing, consulting on or servicing your insurance coverages, Gallagher companies may
participate in contingent commission arrangements with insurance companies that provide for additional
contingent compensation if certain underwriting, profitability, volume or retention goals are achieved: Such
goals are typically based on the total amount of certain insurance coverages placed by Gallagher with the
insurance company, not on an individual policy basis. As a result, Gallagher may be considered to have an
incentive to place your insurance coverages with a particular insurance company.
During the time Gallagher's retail operations did not accept contingent commissions, some insurance
markets, including Gallagher owned intermediaries, modified their commission schedule with Gallagher,
resulting in an increase in some commission rates. The additional commissions, commonly referred to as
"supplemental commissions", are known at the effective date of the policy, but some insurance companies
are paying the commission increase apart and later from when the commission is normally paid at policy
issuance.
Unlike contingent commissions, supplemental conunission payments are determined without regard to any
performance factors which are contingent on future growth, retention, profitability, etc. The following
markets including Gallagher owned entities, and their affiliated companies may pay Gallagher supplemental
commission:
• Chubb Companies
• CNA Companies
• CRC Insurance Services
• Crum & Forster Companies
• Fireman's Fund Companies
• Hartford Companies
• Hartford Steam Boiler
• Liberty Mutual Companies
• Munich Re America
• Navigators Group
• Travelers Companies
• Westfield Companies
• Zenith Companies
• Zurich North America Companies
• Arthur J. Gallagher (UK)/Risk Placement Services (RPS)
The contingent and supplemental commission ranges from less than 1% up to 10% of written or earned
premium on eligible lines of business, not all lines of business qualify, and supplemental commission is not
paid on policies written net of commission (zero commission).
NOTE: Upon request, your Gallagher representative can provide more specific information as it relates to
this proposal.
PWKic Endfy and Sclwlwdc Division
CITY OF VERNON
IMPORTANT NOTICE REGARDING CLAIMS SERVICE
Each and every policy that we have placed for you contains specific instructions on how, when, and where to
report claims to the insurer. If you would like our western region claims service team to assist you with
reporting claims, however, please note the following important contact information:
Email contact: WR-Claims@ajg.com
Toll free numbers for assistance: Phone: 866-971-9462
Fax: 866-971-9464
Address for mailing: Arthur J. Gallagher & Co. Insurance Brokers
of California, Inc.
45 E. River Park Place West, Suite 408
Fresno, CA 93720
Please note that nothing in this notice amends any notice provisions contained in any of your insurance
policies. In the event you do need assistance with reporting a claim, please feel free to contact the service
team at the telephone numbers above.
Arbli!,c Entity and Scholastic Division
Cel
CITY OF VERNON
CLIENT AUTHORIZATION TO BIND COVERAGE
After careful consideration of your proposal dated March 9, 2010, we accept your insurance program subject
to the following exceptions/changes:
POLICY OPTIONS:
• T®JIN
Select Coverage Options To Bind:
Pollution Legal Liability (Landfills/Transportations)
Select Optional Terrorism (TRIA) Coverage to Bind
I Reject All Recommended Coverage Considerations, Except I Would Like a
Quote For:
It is understood this proposal provides only a summary of the details; the policies will contain the actual
coverages.
We confirm the values, schedules, and other data contained in the proposal are from our records and
acknowledge it is our responsibility to see that they are maintained accurately.
Client Signature
Dated
Pkfflc Entity and Sdu3lastic Division
7
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CITY OF VERNON
NOTICE:
1. THE INSURANCE POLICY THAT YOU ARE APPLYING TO PURCHASE IS BEING
ISSUED BY AN INSURER THAT IS NOT LICENSED BY THE STATE OF CALIFORNIA.
THESE COMPANIES ARE CALLED "NONADMITTED" OR "SURPLUS LINE" INSURERS.
2. THE INSURER IS NOT SUBJECT TO THE FINANCIAL SOLVENCY REGULATION AND
ENFORCEMENT THAT APPLY TO CALIFORNIA LICENSED INSURERS.
3. THE INSURER DOES NOT PARTICIPATE IN ANY OF THE
INSURANCE GUARANTEE FUNDS CREATED BY CALIFORNIA
LAW. THEREFORE, THESE FUNDS WILL NOT PAY YOUR CLAIMS OR PROTECT YOUR
ASSETS IF THE INSURER BECOMES INSOLVENT AND IS UNABLE TO MAKE
PAYMENTS AS PROMISED.
4. CALIFORNIA MAINTAINS A LIST OF ELIGIBLE SURPLUS LINE
INSURERS APPROVED BY THE INSURANCE COMMISSIONER. ASK YOUR AGENT OR
BROKER IF THE INSURER IS ON THAT LIST, OR VIEW THAT LIST AT THE INTERNET
WEB SITE OF THE CALIFORNIA DEPARTMENT OF INSURANCE: www.insurance.ca.gov.
5. FOR ADDITIONAL INFORMATION ABOUT THE INSURER YOU
SHOULD ASK QUESTIONS OF YOUR INSURANCE AGENT,
BROKER, OR "SURPLUS LINE" BROKER OR CONTACT THE
CALIFORNIA DEPARTMENT OF INSURANCE, AT THE .
FOLLOWING TOLL -FREE TELEPHONE NUMBER:1-800-927-4357.
6. IF YOU, AS THE APPLICANT, REQUIRED THAT THE INSURANCE POLICY YOU HAVE
PURCHASED BE BOUND IMMEDIATELY, EITHER BECAUSE EXISTING COVERAGE
WAS GOING TO LAPSE WITHIN TWO BUSINESS DAYS OR BECAUSE YOU WERE
REQUIRED TO HAVE COVERAGE WITHIN TWO BUSINESS DAYS, AND YOU DID NOT
RECEIVE THIS DISCLOSURE FORM AND A REQUEST FOR YOUR SIGNATURE UNTIL
AFTER COVERAGE BECAME EFFECTIVE, YOU HAVE THE RIGHT TO CANCEL THIS
POLICY WITHIN FIVE DAYS OF RECEIVING THIS DISCLOSURE. IF YOU CANCEL
COVERAGE, THE PREMIUM WILL BE PRORATED AND ANY BROKER'S FEE CHARGED
FOR THIS INSURANCE WILL BE RETURNED TO YOU."
Date• _
Insured:
Fsblic Endzy and 5ciu It E Division
0
CITY OF VERNON
POLLUTION LEGAL LIABILITY — OPTION 1
March 23, 2010 to March 23, 2011
Great American E&S Insurance Co
Pollution Legal Liability
$1,000,000/Aggregate
On -Site and Off -Site
$1,000,000/Aggregate
Clean Up Costs
Contracting Services
$0
Pollution Liability
Non -Owned Disposal
$5,000,000/Aggregate
Sites
In -Bound and Out- $5,000,000/Aggregate
Bound Contingent
Transportation
$5,000,000
$25,000
4305 Santa Fe Avenue, Vernon, CA 90058
Claims -Made & Reported Form
None
Claim means a demand, notice or assertion of a legal right alleging liability
or responsibility on the part of the Insured, arising out of a Pollution
Condition, and shall include but not be limited to lawsuits, orders, petitions
or governmental or regulatory actions, filed against the Insured
Public iEndfy and SdKAasdc Division
• Pollution Legal Liability
• On -Site and Off -Site Clean Up Costs
• Contracting Services Pollution Liability
• Non -Owned Disposal Site
• In -Bound and Out -Bound Contingent Transportation Coverage
10
CITY OF VERNON
POLLUTION LEGAL LIABILITY — OPTION 1
• Asbestos
• Contractual Liability
• Criminal Fines, Penalties and Assessments
• Prior Incidents Exclusion
• Terrorism (unless purchased)
Excluded
25% Minimum Earned
• 5 years currently valued Pollution loss runs.
• Completed Surplus Lines Tax letter (broker responsibility).
• Copies of your last two (2) years of financial statements and/or
10K reports.
• Signed/dated Terrorism Disclosure Notice.
• Written confirmation of no additional notices, violations or
potential claims which would be related to environmental insurance
coverage.
$19,268 (includes all Surplus Liens Taxes and Fees)
$187
200% of the Full Policy Premium
Yes
�f �3�_
�J u�-s �a
x z a
ME Covered Location Underground Storage Tank d Underground Storage Tank
Capacity Contents
4305 Santa Fe Avenue, Vernon,
CA 90058 10,000 Diesel
4305 Santa Fe Avenue, Vernon,
CA 90058 8,000 Unleaded Gasoline
4305 Santa Fe Avenue, Vernon,
CA 90058 8,000 Unleaded Gasoline
Po is Emiiy and Scholastic Division
11
CITY OF VERNON
POLLUTION LEGAL LIABILITY - OPTION 1
As a condition precedent to the coverage hereunder, in the event a CLAIM
is made against the INSURED for LOSS or CLEAN-UP COSTS, or a
POLLUTION CONDITION is first discovered that results in a LOSS or
CLEAN-UP COSTS, written or oral notice containing particulars sufficient
to identify the INSURED and also. reasonably obtainable information with
respect to the time, place and circumstances thereof, and the names and
addresses of the injured and of available witnesses, shall be given by or for
the INSURED to the Company or any of its authorized agents as soon as
practicable. In the event of oral notice, the INSURED agrees to furnish a
written report as soon as practicable. The INSURED shall also forward to
the Company every demand, notice, summons, order or other process
received by the INSURED or the INSURED's representative as soon as
practicable.
In the event of the termination of this insurance before the expiration date
shown in the Declarations, the INSURED shall be entitled to a ninety (90)
day Automatic Extended Reporting Period for no additional premium. The
Automatic Extended Reporting Period shall apply as follows:
(1) A CLAIM first made against the INSURED during the POLICY
PERIOD and reported to the Company, in writing, during the ninety (90)
days immediately following the effective date of such termination will be
deemed to have been made on the last day of the POLICY PERIOD,
provided such CLAIM is otherwise covered by this Policy.
(2) A CLAIM first made against the INSURED and reported to the
Company, in writing,, during the ninety (90) days immediately following the
effective date of such termination will be deemed to have been made on
the last day of the POLICY PERIOD, provided such CLAIM arises from a
POLLUTION CONDITION first discovered and reported to the
Company, in writing, prior to such termination, and is otherwise covered
by this Policy.
The Automatic Extended Reporting Period does not apply where: (1) the
Policy is terminated for fraud or non-payment of premium; or (2) the
INSURED has purchased other insurance to replace the insurance
provided under this Policy.
For the purposes of Section V.A. — Automatic Extended Reporting Period,
under this Policy:
(a) either cancellation or non -renewal shall be deemed to be a termination
of this insurance; and
(b) in the event of non -renewal, the expiration date shown in the
Declarations shall ,be deemed the effective date of the termination.
P'ablic amity and kWastic Division
12
CITY OF VERNON
POLLUTION LEGAL LIABILITY— OPTION 1
The Optional Extended Reporting Period shall be effective for three (3)
consecutive three -hundred and sixty-five (365) day periods commencing
immediately following the effective date of cancellation or non -renewal. The
FIRST NAMED INSURED must elect to purchase this Optional Extended
Reporting Period in writing within thirty (30) days from the cancellation or
non -renewal of the Policy. The Automatic Extended Reporting Period of
ninety (90) days will be merged into this period and is not in addition to this
period.
The Optional Extended Reporting Period shall only apply to CLAIMS first
made against the INSURED during the Optional Extended Reporting
Period, but only by reason of a POLLUTION CONDITION first
discovered and reported to the Company, in writing, during the POLICY
PERIOD, and is otherwise covered by this Policy.
The Optional Extended Reporting Period does not apply where: (1) the
Policy is terminated for fraud or non-payment of premium; or (2) the
INSURED has purchased other insurance to replace the insurance provided
under this Policy.
For the purposes of Section V.B. — Optional Extended Reporting Period
under this Policy:
(a) either cancellation or non -renewal shall be deemed to be a termination
of this insurance; and
(b) in the event of non -renewal, the expiration date shown in the
Declarations shall be deemed the effective date of the termination.
It is a condition precedent to the operation of the rights granted under
Section V.B. that payment of the appropriate premium shall be made not
later than thirty (30) days after expiration in the case of non -renewal or prior
to cancellation in the case of cancellation.
Public En ity and Schotasti[ Division
13
CITY OF VERNON
POLLUTION LEGAL LIABILITY — OPTION 2
March 23, 2010 to March 23, 2011
Chubb Custom Insurance Co
Bodily Injury, Property $5,000,000/Aggregate
Damage, Rem' ediation
Costs, New Pollution
Incident
Bodily Injury, Property Not Included
Damage, Remediation
Costs, Pre -Existing
Pollution Incident
Bodily Injury, Property $5,000,000/Aggregate
Damage, Remediation
Costs, Non Owned
Locations
Business Interruption Not Included
$5,000,000
$25,000
4305 Santa Fe Avenue, Vernon, CA 90058
Claims -Made & Reported Form
None
Claim means a written demand or notice received by the Insured asserting
liability or responsibility on the part of the Insured for loss. Claim does not
include a potential claim that was reported under a prior policy as
described in Section II, Paragraph 2 of the policy form, but which has
become a claim during the policy period
Public I ndfy and Scholwdc Division
• Pollution Legal Liability including Bodily Injury, Property Damage
and Remediation Costs
• Pollution Legal Liability including Bodily Injury, Property Damage
and Remediation Costs — Non Owned Locations
14
CITY OF VERNON
POLLUTION LEGAL LIABILITY - OPTION 2
• Business Interruption
• Material Change in Use
• Mold
• Identified Pollution Incidents Exclusion
• Terrorism (unless purchased)
Excluded
100% Minimum Earned
• Receipt and satisfactory review of an original, signed Chubb ESL
application and TRIA agreement (should the insured decline
terrorism coverage)
• Receipt and satisfactory review of environmental loss runs for the
past three years
• Receipt and satisfactory review of UST monitoring data
• An engineering survey must be performed
• Receipt of the insured's response to the recommendations of the
engineering survey requested by CES within sixty (60) days of
receipt of such recommendations.
$17,371 (includes all Surplus Liens Taxes and Fees)
$181
200% of the Full Policy Premium
Yes
Covered Location
Underground Storage Tank
Underground Storage Tank
Capacity
Contents
4305 Santa Fe Avenue, Vernon,
CA 90058
10,000
Diesel
4305 Santa Fe Avenue, Vernon,
CA 90058
8,000
Unleaded Gasoline
4305 Santa Fe Avenue, Vernon,
CA 90058
8,000
Unleaded Gasoline
Pobllc DWfy and Scholastic Division
15
CITY OF VERNON
POLLUTION LEGAL LIABILITY — OPTION 2
A. You must report a claim or discovery of a pollution incident to us as
soon as possible and in any event during the policy period, or extended
reporting period, if applicable. To the extent possible such notice should
include:
(1) how, when, and where the pollution incident took place;
(2) the names and addresses of any injured persons and witnesses;
(3) the nature and location of any injury or damage arising out of the
pollution incident; and
(4) the date you received the claim.
B. You and any other involved insured must:
(1) immediately send us copies of any demands, notices, summonses or any
other
process or legal papers received in connection with a claim; and
(2) authorize us to obtain records and other information
The named insured shall be entitled to a basic extended reporting period,
and may purchase a supplemental extended reporting period, following
Termination of Coverage as described below. A claim first made and
reported to us within the basic extended reporting period or supplemental
.extended reporting period, whichever is applicable, will be deemed to have
been made on the last day of the policy period. Neither the basic nor the
supplemental extended reporting period shall -reinstate or increase any of
the Limits Of Insurance of this policy.
Provided the named insured has not purchased any other insurance to
replace this insurance,
the named insured shall have a sixty (60) day basic extended reporting
period.
The named insured shall be entitled to purchase a supplemental extended
reporting period of up to forty-eight (48) months for not more than 200%
of the full policy premium stated in Item 9 of the Declarations. Such
supplemental extended reporting period starts when the basic extended
reporting period ends. We will issue an endorsement providing a
supplemental extended reporting period provided that the named insured:
A. makes a written request for such endorsement which we receive within
thirty (30) days after Termination of Coverage; and
B. pays the additional premium when due. If that additional premium is paid
when due, the
supplemental extended reporting period may not be cancelled, provided that
all other
terms and conditions of the policy are met.
Firbtic Eniry and Scix wUE Division
.CASN-D2 (Ed. 01 08) XS
GnT^ 7
RFA'1EaThAN
�#l./ll l
Administrative Offices
580 Walnut Street
IH6URANCE•GROUP
Cincinnati, Oh 45202
Tel: 1-513-369-5000
SURPLUS LINES NOTIFICATION
1. THE INSURANCE POLICY THAT YOU HAVE PURCHASED IS BEING ISSUED BY AN
.INSURER THAT IS NOT LICENSED BY THE STATE OF CALIFORNIA. THESE COMPANIES
ARE CALLED "NONADMITTED" OR "SURPLUS LINE" INSURERS.
2. THE INSURER IS NOT SUBJECT TO THE FINANCIAL SOLVENCY REGULATION AND
ENFORCEMENT WHICH APPLIES TO CALIFORNIA LICENSED INSURERS.
3. THE INSURER DOES NOT PARTICIPATE IN ANY OF THE INSURANCE GUARANTEE FUNDS
CREATED BY CALIFORNIA LAW. THEREFORE, THESE FUNDS WILL NOT PAY YOUR
CLAIMS OR PROTECT YOUR ASSETS IF THE INSURER BECOMES INSOLVENT AND IS
UNABLE TO MAKE PAYMENTS AS PROMISED.
4. CALIFORNIA MAINTAINS A LIST OF ELIGIBLE SURPLUS LINE INSURERS APPROVED BY
THE INSURANCE COMMISSIONER. ASK YOUR AGENT OR BROKER IF THE INSURER IS
ON THAT LIST, OR VIEW THAT LIST AT THE WEB SITE OF THE -CALIFORNIA
DEPARTMENT OF INSURANCE: WWW.INSURANCE.CA.GOV.
5. FOR ADDITIONAL INFORMATION ABOUT THE INSURER YOU SHOULD ASK QUESTIONS
OF YOUR INSURANCE AGENT, BROKER, OR "SURPLUS LINE" BROKER OR CONTACT
THE CALIFORNIA DEPARTMENT OF INSURANCE, AT THE FOLLOWING TOLL -FREE
TELEPHONE NUMBER: 1-800-927-4357.
6. IF YOU, AS THE APPLICANT, REQUIRED THAT THE INSURANCE POLICY YOU HAVE
PURCHASED BE BOUND IMMEDIATELY, EITHER BECAUSE EXISTING COVERAGE WAS
GOING TO LAPSE WITHIN TWO BUSINESS DAYS OR BECAUSE YOU WERE REQUIRED TO
HAVE COVERAGE WITHIN TWO BUSINESS DAYS, AND YOU DID NOT RECEIVE THIS
DISCLOSURE FORM AND A REQUEST FOR YOUR SIGNATURE UNTIL AFTER COVERAGE
BECAME EFFECTIVE, YOU HAVE THE RIGHT TO CANCEL THIS POLICY WITHIN FIVE
DAYS OF RECEIVING THIS DISCLOSURE. IF YOU CANCEL COVERAGE, THE PREMIUM
WILL BE PRORATED AND ANY BROKER FEE- CHARGED FOR THIS INSURANCE WILL BE
RETURNED TO YOU.
(Page 1 of 1)
GREAT
�, D iC 1►i
AES 30 12 (Ed. 01 09) XS
Administrative Offices
f11 tlf 7
580 Walnut Street
INSURANCE GROUP
Cincinnati, Oh 45202
Tel: 1-513-369-5000
GENERAL SERVICE OF SUIT ENDORSEMENT
(Not Applicable in Delaware or Pennsylvania)
Pursuant to any statute of any state or district of the United States of America that makes provision therefor, the Insurer
hereby designates the commissioner, superintendent or director of insurance or other officer specified for that purpose in
the statute and his or her successors in office and duly authorized deputies in the state where this policy is issued, as the
Insurer's true and lawful attorney for service of legal process in any action, suit or proceeding brought in the state where
this policy is issued by or on behalf of an insured or beneficiary against the Insurer arising out of the insurance issued
under this policy. Any legal process received by such attorney for service of legal process shall be forwarded, except as
provided below, to the attention of: Eve Cutler Rosen, General Counsel, Great American Insurance Company, 580
Walnut Street, Cincinnati, Ohio 45202.
In California, any legal process received by the Insurer's statutory attorney for service of process shall be forwarded to
the attention of: Jere Keprios, The CT Corporation System, 818 West Seventh Street, Los Angeles, California 90017;
In the District of Columbia, any legal process received by the Insurer's statutory attorney for service of process shall be
forwarded to CT Corporation System, 1015
15th Street, NW, Suite 1000, Washington, DC 20005;
In Maine, the Insurer hereby designates CT Corporation System as its attorney for service of legal process in any action
relating to this policy, and directs that all such legal process be mailed to: CT Corporation System, One Portland Square,
Portland, Maine 04101.
In Oregon, the Insurer and the insured policyholder hereby agree to waive the provisions of Oregon Insurance Code
Section 735.490 requiring that service of legal process in any action relating to this policy shall be served on the insurance
agent who registered or delivered this policy, and instead agree that such service of legal process be mailed directly to
Eve Cutler Rosen, General Counsel, Great American insurance Company 580 Walnut Street, Cincinnati, Ohio 45202.
In Rhode Island, the Insurer hereby designates CT Corporation System as its attorney for service of legal process in any
action relating to this policy, and directs that all such legal process be mailed to: CT Corporation System, 10 Weybosset
Street, Providence, Rhode Island 02903.
The foregoing designations of attorney for service of legal process upon the Insurer shall not constitute a waiver of the
Insurer's rights to remove, remand, dismiss or transfer any suit or proceeding from any court, or to commence any suit or
other proceeding in any court of competent jurisdiction.
(Page 1 of 1)
GREAAdministrative
T ERICAN
Offices
580 Walnut Street
INSURANCE GROUP
Cincinnati, Oh 45202
Tel: 1.513-369-5000
SDM-526 (Ed. 09 06) XS
GREAT AMERICAN INSURANCE GROUP
PRIVACY NOTICE
AND
NOTICE OF INSURANCE INFORMATION PRACTICES
Great American Insurance Company
Great American Alliance Insurance Company
Great American Assurance Company
Great American Contemporary Insurance Company
Great American E & S Insurance Company
Great American Fidelity Insurance Company
Great American Insurance Company of New York
Great American Lloyd's Insurance Company
Great American Protection Insurance Company
Great American Security Insurance Company
Great American Spirit Insurance Company
Worldwide Casualty Insurance Company
American Empire Surplus Lines Insurance Company
American Empire Insurance Company
American Empire Underwriters, Inc.
Crop Managers Insurance Agency, Inc.
Dempsey & Siders Agency, Inc.
Great American Custom Insurance Services, Inc.
Great American Insurance Agency, Inc.
(Page 1 of 3)
SDM-526 (Ed. 09 06) XS
The members of Great American Insurance Group ("Great American," including those companies listed in this Notice)
respect your right to privacy.
We want you to know about our procedures for protecting your privacy and your rights and responsibilities regarding
nonpublic personal information (referred to as "data" in this notice) we receive about you. We want you to understand
how we gather data about you and how we protect it. The terms of this Notice apply to those individuals who inquire about
or obtain insurance from Great American primarily for personal, family or household purposes.
We will provide our customers with a copy of the most recent notice of our privacy policy at least annually and more often
if we make any changes affecting their rights under our privacy policy. This Notice applies to current and- former
customers of Great American.
Great American does not share your data except as allowed by law. As a result, you do not need to take any action under
this Notice. If we change our practices in the future, we will advise you. If applicable, we will allow you to 'opt -out" of
certain sharing.
1. What kind of data is collected about you?
We get most of our data about you directly from you, such as your name, address, social security number, income
level and certain other financial data. We collect data that you provide during the insurance application process and
by other contact with you by mail and over the phone.
In some cases we may need additional data or may need to verify data you have given us. In those cases, we may
obtain data from outside sources at our own expense. For instance, we may collect data from consumer reporting
agencies such as credit worthiness and history or employment history. If you send a written request to the address
below, we will inform you of the name and address of any agency we have used to prepare a report on you so that
you can contact the agency.
Once you become our customer, we may collect data related to our experiences and transaction with you. This could
include data such as insurance policy coverage, premiums and payment history, and any claims you make under your
insurance policy. For example, we will retain data collected by a claims representative and police or fire reports.
We may also collect data about you from our affiliates regarding their transactions and experiences with you (such as
your payment or claims history). We do not currently share other credit -related data, except as allowed or required by
law.
Finally, we may collect data when you visit our website or when you email us. We do not sell this or any other data
about you to anyone.
2. What do we do with data about you?
Data about you will be kept in our records.- We may disclose data to issue and service policies and settle claims.
Generally, we will not disclose data about you to any outside group without your prior authorization. However, we
may, as allowed by law, share data that we collect as set forth below.
We may disclose data to your insurance agent.
We may disclose data to persons who represent you, including your attorney or trustee.
We may disclose data to adjusters, appraisers, auditors, investigators and attorneys.
We may disclose data to those who need the data to perform a business, professional or insurance function for
us.
We may disclose data to other insurance companies, agents or consumer reporting agencies, in connection with
any insurance application, policy or claim involving you.
(Page 2 of 3)
SDM-526 (Ed. 09 06) XS
We may disclose data to medical providers to inform you of a medical condition of which you may not be aware
and for claims payment purposes.
We may disclose data to others that conduct research, provided that no individual data may be identified in any
research study report.
We may disclose data, other than health data, to others that perform marketing services on our behalf.
We may disclose data to our affiliated companies to market products to you and for other purposes. The law does
not allow you to restrict this sharing.
We may disclose data to a court, state insurance department or other government agency pursuant to a
summons, court order, search warrant, subpoena, or as otherwise required by law or regulation.
We will only disclose your health data in the following ways:
as allowed or required by law;
with your written consent;
to underwrite or administer your policy, claim or account; or
in a manner as previously disclosed to you by us when we collect your health data.
When we disclose your data to third parties for certain purposes described above, we will require them to use your data
only for its intended purpose.
3. Who has access to your data?
The only people who have access to your data are those who need it to provide or support the provision of products
or services to you. We use a system of passwords and other appropriate physical, electronic and procedural
safeguards to protect against unauthorized access to your data. We have educated our employees about this Notice
and the importance of customer privacy.
4. How can you review recorded data about you?
You have the right to access and inspect most of the data that we collect about you. To access your data please send
a written request to the address below stating that you would like to access your data. Either you or your personal
representative must sign this request and provide a copy of your driver's license or other valid photo identification.
You also have the right to request that we correct any data that you believe is incorrect. To amend your data, please
send us a written request, at the address below, stating what data you believe needs correcting. Once again, either
you or your personal representative must sign this request. If you submit a request to amend your data, we will
investigate. If we agree, we will correct our records. Even if we do not correct the data, you have the right to file with
us a written statement of dispute, which we will include, in any future disclosure of the data.
5. How can you contact us?
If you have any questions about our privacy policy, please write to us at:
GREAT AMERICAN INSURANCE COMPANY
580 Walnut Street
Cincinnati, Ohio 45202
Attn: Compliance Office — Privacy
(Page 3, of 3)
Administrative Offices PEL 30 00 (Ed. 04 08)
CTRE-ATAMERICAN, 580 CincWalnut
Ohio Ie45202
INSURANCE GROUP Tel: 1-513-369-5000
GREAT AMERICAN E & S INSURANCE COMPANY
PREMISES ENVIRONMENTAL LIABILITY INSURANCE DECLARATIONS
THIS IS A CLAIMS MADE AND REPORTED POLICY. READ IT CAREFULLY.
THIS POLICY REQUIRES THAT A CLAIM BE MADE AGAINST THE INSURED DURING THE POLICY PERIOD
AND REPORTED TO THE COMPANY DURING THE POLICY PERIOD OR, IF APPLICABLE, THE EXTENDED
REPORTING PERIOD.
SOME OF THE PROVISIONS CONTAINED IN THIS POLICY RESTRICT COVERAGE, SPECIFY WHAT IS AND
IS NOT COVERED AND DESIGNATE RIGHTS AND DUTIES. LEGAL EXPENSE IS SUBJECT TO AND WILL
ERODE THE LIMIT OF LIABILITY AND ANY APPLICABLE SELF -INSURED RETENTION.
Policy Number: PEL 8629840 00
Renewal Of: NEW BUSINESS
Customer Number: 0004317344
1. Named Insured: CITY OF VERNON
Street Address: 4305 SANTA FE AVENUE
City/State/Zip: VERNON, CA 90058
2: Policy Period: From: 3/23/2009 To: 3/23/2010
(12:01 A.M. standard time at the mailing address shown in Item 1. above)
3. Coverages and Coverage Section Limits of Liability and Self -Insured Retention:
If no Limit of Liability or Self -Insured Retention amount appears for a Coverage section shown below, this Policy does
not apply for that Coverage section.
Coverage
Each POLLUTION
CONDITION Limit
Coverage Aggregate
Limit
Self -Insured
Retention
A.
$ 1,000,000
$ 1,000,000
$ 25,000
B.
$ 1,000,000
$ 1,000,000
$ 25,000
C.
$0
$0
$0
D.
$ 5,000,000
$ 5,000,000
$ 25,000
E.
$ 5,000,000
$ 5,000,000
$ 25,000
4. Policy Aggregate Limit of Liability: $ 5,000,000
(Page 1 of 2)
5. COVERED 4305 SANTA FE AVENUE, VERNON, CA 90058
LOCATION(s):
6. CONTRACTING All Contracting Services
SERVICES:
7. Retroactive Date: Not Applicable
8. Reverse Retroactive Date: Not Applicable
9. Premium:
-Premium for Certified Acts of Terrorism (coverage rejected):
-Premium for Taxes and Surcharges (included in above):
10. Minimum Earned Premium: 25%
11. Broker: ARTHUR J GALLAGHER & CO.
Street Address: 505 N BRAND BLVD STE 600
City/State/Zip: GLENDALE, CA 91203
$ 18,508.00
$ 0.00
$ 0.00
PEL 30 00 (Ed. 04 08)
12. Forms and Endorsements applicable to all Coverage parts and made part of this Policy at the time of issue are listed
on the attached Forms and Endorsements Schedule.
(Page 2 of 2)
y
GuEAR yEiitcAly.
INSURANCE GNUP
ENVIRONMENTAL DIVISION
ENDORSEMENT # PEL (Manus 03110)
This endorsement, effective 12:01 a.m., , forms a part of Policy No. issued to City of Vernon By
Great American E & S Insurance Company
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
CONTRACTING SERVICES DEFINITION AMENDATORY ENDORSEMENT
This endorsement modifies insurance provided under the following:
PREMISES ENVIRONMENTAL LIABILITY INSURANCE POLICY
The INSURED and the Company agree to the following Policy change(s):
Section 11. DEFINITIONS, Item G. CONTRACTING SERVICES is deleted in its entirety and
replaced with the following:
G. CONTRACTING SERVICES means any contracting services listed in the
Declarations and performed by or on behalf of the INSURED at a JOB SITE.
All other terms and conditions remain the same.
GAF AT �—�'
AMERICAN.
INSURANCE6ROUP
ENVIRONMENTAL DIVISION
ENDORSEMENT # PEL (Manus 03/10)
This endorsement, effective 12:01 a.m., , forms a part of Policy No. issued to City of Vernon By
Great American E & S Insurance Company
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
NON -OWNED DISPOSAL SITE(S) ("NODS") AMENDATORY ENDORSEMENT
This endorsement modifies insurance provided under the following:
PREMISES ENVIRONMENTAL LIABILITY INSURANCE POLICY
The INSURED and the Company agree to the following Policy change(s):
1. Section II. DEFINITIONS, Item Q. NON -OWNED DISPOSAL SITE(S) ("NODS") is deleted in
its entirety and replaced with the following:
Q. NON -OWNED DISPOSAL SITE($) ("NODS") means:
1. each location endorsed onto this Policy in the NODS Schedule; or
2. a location(s) used for the treatment, storage or disposal of an INSURED's
waste material, but only if:
a. the waste material is generated by CONTRACTING SERVICES or at
a COVERED LOCATION(S); and
b. the NODS is not managed, operated, owned or leased by the
INSURED or any subsidiary or affiliate of the INSURED; and
c. the NODS is permitted and/or licensed by any Federal, State, Local
or Provincial authorities to accept such material as of the date of the
treatment, storage or disposal; and
d. the NODS is not listed on a ' proposed or final Federal National
Priorities List ("NPL") and any State or Provincial equivalent NPL,
Superfund or Hazardous Waste list prior to the treatment, storage or
disposal.
GrsEATAncvv
INSURANCE GNUP
ENVIRONMENTAL DIVISION
2. Section I. INSURING AGREEMENTS, D. Coverage D — NON -OWNED DISPOSAL SITE
applies to the following locations:
Schedule of NODS:
• Puente Hills Landfill, 2800 South Workman Mill Road, Whittier, CA 90601
• Sunshine Canyon Landfill, 14747 San Fernando Road, Sylmar, CA 91342
• Olinda Alpha Sanitary Landfill, 1942 N. Valencia Avenue, Brea, CA 92823
• Antelope Valley Public Landfill, 1200 West City Ranch Road, Palmdale, CA
93551
• Azusa Land Reclamation, 1211 West Gladstone Street, Azusa, CA 91702
• Chiquita Canyon Landfill, 29201 Henry Mayo Drive, Valencia, CA 91355
• Commerce Refuse -to -Energy, 5926 Sheila Street, Commerce, CA 90040
• El Sobrante Landfill, 10910 Dawson Canyon Road, Corona, CA 92883
• Landcaster Landfill and Recycling, 600 E. Avenue #F, Landcaster, CA
93535
• Simi Valley Landfill and Recycling, 2801 Madera Road, Simi Valley, CA
93065
• Frank R. Bowerman Sanitary Landfill, 11002 Bee Canyon Access Road,
Irvine, CA 92618
All other terms and conditions remain the same.
t(•-- AdministreUveOf(ces PEL 30 01 (Ed. 04 08)
GREA "TyyA JemERICAN 580 Waetu Ohi' 0 45202
INSURANCE CROUP Tel: 1-513-369-5000
GREAT AMERICAN E & S INSURANCE COMPANY
PREMISES ENVIRONMENTAL LIABILITY INSURANCE POLICY
THIS IS A CLAIMS MADE AND REPORTED POLICY. READ IT CAREFULLY.
THIS POLICY REQUIRES THAT A CLAIM BE MADE AGAINST THE INSURED DURING THE POLICY PERIOD AND
REPORTED TO THE COMPANY DURING THE POLICY PERIOD OR, IF APPLICABLE, THE EXTENDED REPORTING
PERIOD.
SOME OF THE PROVISIONS CONTAINED IN THIS POLICY RESTRICT COVERAGE, SPECIFY WHAT IS AND IS
NOT COVERED AND DESIGNATE RIGHTS AND DUTIES. LEGAL EXPENSE IS SUBJECT TO AND WILL ERODE
THE LIMIT OF LIABILITY AND ANY APPLICABLE SELF -INSURED RETENTION.
In this Policy, "the Company" refers to the company providing this insurance. Some other words and phrases that appear
in capital letters have special meaning. Refer to SECTION 11 — DEFINITIONS.
In consideration of the payment of the Policy Premium and in reliance upon the statements contained in the Application
and any other supplemental materials and information submitted in connection with the Application, and subject to all the
terms, conditions, exclusions and limitations of this Policy, the Company agrees to provide insurance coverage to the
INSURED as described herein:
SECTION I. INSURING AGREEMENTS
EACH OF THE FOLLOWING COVERAGES IS IN EFFECT ONLY IF IT IS SCHEDULED IN THE DECLARATIONS.
EACH COVERAGE THAT IS IN EFFECT IS SUBJECT TO SECTION VI. LIMIT OF LIABILITY AND SELF -INSURED
RETENTION.
A. COVERAGE A - POLLUTION LEGAL LIABILITY
The Company will pay on behalf of the INSURED for LOSS and related LEGAL EXPENSE because -of a POLLUTION
CONDITION on, at, under or migrating from the COVERED LOCATION(S), which the INSURED becomes legally
obligated to pay as a result of a CLAIM first made against the INSURED during the POLICY PERIOD, but only if the
INSURED reports the CLAIM to the Company, in writing, during the POLICY PERIOD or, if applicable, the
EXTENDED REPORTING PERIOD.
B. COVERAGE B — ON -SITE AND OFF -SITE CLEAN-UP COSTS
The Company will pay on behalf of the INSURED for CLEAN-UP COSTS and related LEGAL EXPENSE because of a
POLLUTION CONDITION on, at, under or migrating from the COVERED LOCATION(S):
1. which the INSURED becomes legally obligated to pay as a result of a CLAIM first made against the INSURED
during the POLICY PERIOD; or
2. if the POLLUTION CONDITION is first discovered by the INSURED during the POLICY PERIOD;
but only if the INSURED notifies the Company of the CLAIM or POLLUTION CONDITION, in writing, during the
POLICY PERIOD or, if applicable, the EXTENDED REPORTING PERIOD.
C. COVERAGE C — CONTRACTING SERVICES POLLUTION LIABILITY
The Company will pay on behalf of the INSURED for LOSS, CLEAN-UP COSTS, and related LEGAL EXPENSE
(Page 1 of 12)
PEL 30 01 (Ed. 04 08)
which the INSURED becomes legally obligated to pay because of a POLLUTION CONDITION arising from
CONTRACTING SERVICES where, during the POLICY PERIOD:
1. a CLAIM for such LOSS and/or CLEAN-UP COSTS is first made against the INSURED; or
2, the POLLUTION CONDITION first begins and is first discovered by the INSURED;
but only if the INSURED notifies the Company of the CLAIM or POLLUTION CONDITION, in writing, during the
POLICY PERIOD, or, if applicable, the EXTENDED REPORTING PERIOD.
D. COVERAGE D - NON -OWNED DISPOSAL SITE
The Company will pay on behalf of the INSURED for LOSS, CLEAN-UP COSTS, and related LEGAL EXPENSE
because of a POLLUTION CONDITION on, at, under or migrating from a NON -OWNED DISPOSAL SITE, which the
INSURED becomes legally obligated to pay as a result of a CLAIM first made against the INSURED during the
POLICY PERIOD, but only if the INSURED reports the CLAIM to the Company, in writing, during the POLICY
PERIOD or, if applicable, the EXTENDED REPORTING PERIOD.
E. COVERAGE E — IN -BOUND AND OUT -BOUND CONTINGENT TRANSPORTATION COVERAGE
The Company will pay on behalf of the INSURED for LOSS, CLEAN-UP COSTS, and related LEGAL EXPENSE
because of a POLLUTION CONDITION arising from the INSURED's goods, products or waste during the course of
transportation by a CARRIER to or from:
1. a JOB SITE where CONTRACTING SERVICES are being performed; or
2. a COVERED LOCATION(S);.
including any loading or unloading of such goods, products or waste, which the INSURED becomes legally obligated
to pay as a result of a CLAIM first made against the INSURED during the POLICY PERIOD, but only if the INSURED
reports the CLAIM to the Company, in writing, during the POLICY PERIOD or, if applicable,. the EXTENDED
REPORTING PERIOD.
SECTION II. DEFINITIONS
A. ADDITIONAL NAMED INSURED means any person, organization, or entity identified as an ADDITIONAL NAMED
INSURED in an .endorsement issued by the Company, but solely for their liability as a result of their ownership,
maintenance, use, operation, development or financial interest in a COVERED LOCATION(S).
B. AUTOMOBILE means a land motor vehicle, trailer, semi -trailer, mobile equipment, or off -road motor vehicle, including
any machinery or apparatus attached thereto.
C. BODILY INJURY means:
1. physical injury, sickness; disease, or building related illness sustained by any person, including death resulting
therefrom, and, solely with regard to this Item CA., any accompanying medical or environmental monitoring;
and/or
2. mental anguish, emotional distress, or shock;
caused by a POLLUTION CONDITION.
D. CARRIER means a person or entity, other than the INSURED or any subsidiary or affiliate company of the INSURED,
engaged by or on behalf of the INSURED to transport material by AUTOMOBILE, aircraft, watercraft or rolling stock,
but only if such person or entity is properly licensed to transport such material and in the business of transporting such
material.
(Page 2 of 12)
PEL 30 01 (Ed. 04 08)
E. CLAIM means a demand, notice or assertion of a legal right alleging liability or responsibility on the part of the
INSURED, arising out of a POLLUTION CONDITION, and shall include but not be limited to lawsuits, orders, petitions
or governmental or regulatory actions, filed against the INSURED.
F. CLEAN-UP COSTS means reasonable and necessary expenses incurred to investigate, remove, dispose of, abate,
contain, treat or neutralize a POLLUTION CONDITION, including any monitoring and testing costs:
1. to the extent required by Federal, State, Local or Provincial Laws, including but not limited to statutes, rules,
ordinances, guidance documents, regulations and all amendments thereto, including state voluntary cleanup or
risk based corrective action guidance, governing the liability or responsibilities of the INSURED; or
2. in the absence of items in 1. above, to the extent recommended by a ENVIRONMENTAL PROFESSIONAL;
with respect to a POLLUTION CONDITION.
CLEAN-UP COSTS includes REPLACEMENT COSTS and also includes any associated punitive, exemplary or
multiplied damages, where insurable by law.
G. CONTRACTING SERVICES means any contracting services listed in the Declarations and performed by the
INSURED at a JOB SITE.
H. COVERED LOCATION(S) means any location(s) stated in the Declarations or any location(s) scheduled as such onto
this Policy by an endorsement issued by the Company. COVERED LOCATION(S) does not include a JOB SITE..
I. ENVIRONMENTAL PROFESSIONAL means an individual designated by the Company who is duly certified or
licensed in a recognized field of environmental science as required by a state board, a professional association, or
both. The Company shall consult with the INSURED in conjunction with the selection of the ENVIRONMENTAL
PROFESSIONAL. The Company may require that such professional meet certain minimum qualifications and
maintain errors and omissions insurance.
J. EXTENDED REPORTING PERIOD means the Automatic Extended Reporting Period or, if applicable, the Optional
Extended Reporting Period described in Section V. of this Policy.
K. FIRST NAMED INSURED means the person or entity stated in the Declarations.
L. INSURED means the FIRST NAMED INSURED, any ADDITIONAL NAMED INSURED added to this Policy by an
endorsement issued by the Company, and any present or former director, officer, partner, member, employee, leased
or temporary worker thereof, while acting within the scope of his/her duties as such.
M. LEGAL EXPENSE means attorneys' fees and other charges and expenses incurred in the investigation, adjustment,
defense, or settlement of any CLAIM for LOSS or CLEAN-UP COSTS, or in connection with the payment of any
CLEAN-UP COSTS. LEGAL EXPENSE includes the fees and expenses of consultants, expert witnesses,
accountants, court reporters, and other vendors, for goods or services in connection with such investigation,
adjustment, defense, or settlement, whether incurred by the INSURED, defense counsel, or the Company.
LEGAL EXPENSE does not include salary charges of regular employees or officials of the Company, fees and
expenses of supervisory counsel retained by the Company, or the time and expense incurred by, the INSURED in
assisting in the investigation or resolution of a CLAIM or in connection with CLEAN-UP COSTS, including but not
limited to the costs of the INSURED's in-house counsel.
N. LOSS means a monetary judgment, award or settlement of:
1. compensatory damages, or
2. punitive, exemplary or multiplied damages, civil fines, penalties and assessments, where insurable by law,
because of BODILY INJURY and/or PROPERTY DAMAGE.
(Page 3 of 12)
PEL 30 01 (Ed. 04 08)
O. JOB SITE means a location at which CONTRACTING SERVICES are performed. However, JOB SITE does not
include any of the following:
1. a COVERED LOCATION(S); or
2. any location managed, operated, owned or leased by an INSURED or any subsidiary or affiliate of an INSURED.
P. MOLD MATTER means mold, mildew or any type or form of fungus; including any mycotoxins, spores, or byproducts
produced or released by fungi.
0. NON -OWNED DISPOSAL SITE(S) ("NODS") means a location(s) used for the treatment, storage or disposal of an
INSURED'S waste material, but only if:
1. the waste material is generated by CONTRACTING SERVICES or at a COVERED LOCATION(S); and
2. the NODS is not managed, operated, owned or leased by the INSURED or any subsidiary or affiliate of the
INSURED; and
the NODS is permitted and/or licensed by any Federal, State, Local or Provincial authorities to accept such
material as of the date of the treatment, storage or disposal; and
4. the NODS is not listed on a proposed or final Federal National Priorities List ("NPL") and any State or Provincial
equivalent NPL, Superfund or Hazardous Waste list prior to the treatment, storage or disposal.
R. POLICY PERIOD means the period stated in the Declarations. However, if this Policy is cancelled, by either the
FIRST NAMED INSURED or the Company, the policy period ends at the effective date and time of the cancellation.
S. POLLUTANTS mean any solid, liquid, gaseous or thermal pollutant, irritant or contaminant, including but not limited to
smoke, vapors, odors, soot, fumes, acids, alkalis, toxic chemicals, hazardous substances, petroleum hydrocarbons,
waste materials, including medical, infectious and pathological wastes, legionella, electromagnetic fields, MOLD
MATTER and low-level radioactive waste and material.
T. POLLUTION CONDITION means any one or more of the following:
1. the discharge, dispersal, release, seepage, migration, or escape of POLLUTANTS into or upon land or structures
thereupon, the atmosphere, or any watercourse or body of water including groundwater;
2. the illicit abandonment of POLLUTANTS at a COVERED LOCATION(S) provided that such abandonment was
committed by a person(s) or entity(ies) other than an INSURED and without any knowledge by a RESPONSIBLE
PERSON;
3. the existence of MOLD MATTER on, at, or within buildings or structures.
U. PROPERTY DAMAGE means:
1. physical injury to or destruction of tangible property of any person or organization other than an INSURED,
including the resulting loss of use of such property, and including the personal property of such parties; or
2. loss of use of such property that has not been physically injured or destroyed; or
3. diminution in the value of such property; or
4. natural resource damage which means the physical injury to or destruction of, as well as the assessment of such
injury or destruction, including the resulting loss of value of land, fish, wildlife, biota, air, water, groundwater,
drinking water supplies, and other such resources belonging to, managed by, held in trust by, appertaining to, or
otherwise controlled by the United States (including the resources of the fishery conservation zone established by
the Magnuson -Stevens Fishery Conservation and Management Act(16 U.S.C. 1801 et. seq.)),.any State, Local or
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PEL 30 01 (Ed. 04 08)
Provincial government, any foreign government, any Native American tribe, or, if such resources are subject to a
trust restriction or alienation, any member of a Native American Tribe.
caused by a POLLUTION CONDITION. However, PROPERTY DAMAGE does not include CLEAN-UP COSTS.
V. REPLACEMENT COSTS means reasonable and necessary costs incurred by the INSURED with the Company's
written consent, to repair, restore or replace damaged real or personal property in order to restore the property to the
condition it was in prior to being damaged in the course of incurring CLEAN-UP COSTS. REPLACEMENT COSTS
shall not exceed the actual cash value of such real or personal property prior to incurring the CLEAN-UP COSTS. For
the purposes of this definition, actual cash value means replacement cost reduced by physical depreciation and
obsolescence.
W. RESPONSIBLE PERSON means any officer, director or partner of the INSURED; the manager or supervisor of the
INSURED responsible for environmental or health and safety affairs, control or compliance; or any manager of a
COVERED LOCATION(S).
X. UNDERGROUND STORAGE TANK means any container or vessel, including the associated piping connected
thereto, which is ten percent (10%) or more beneath the surface of the ground.
SECTION Ill. TERRITORY
This Policy applies only to CLAIMS first made or brought in the United States, its territories or possessions, Puerto Rico or
Canada, but only if the INSURED'S responsibility to pay for LOSS is determined in:
A. a proceeding on the merits conducted in the United States, its territories or possessions, Puerto Rico or Canada, or
B. a settlement agreed to by the Company.
SECTION IV. EXCLUSIONS
This Insurance does not apply to any LOSS, CLEAN-UP COSTS, LEGAL EXPENSE or other coverage afforded
under this Policy or any endorsement issued by the Company:
1. Asbestos
based upon or arising out of any asbestos or asbestos containing material, in, on, or applied to any building or other
structure. This exclusion does not apply to asbestos, or asbestos containing materials, in soil or in any watercourse or
body of water including groundwater.
2. Communicable Diseases
based upon or arising out of any exposure to infected humans or animals, or contact with bodily fluids of infected
humans or animals.
3. Contractual Liability
based upon or arising from the INSURED's assumption, under any contract or agreement, of the liability of another.
This exclusion does not apply to liability the INSURED would have had in the absence of the contract or
agreement.
4. Criminal Fines, Penalties and Assessments
based upon or arising out of any criminal fine, criminal penalty, or criminal assessment.
5. Employer's LiabilityMorkers' Compensation
based upon or arising out of any BODILY INJURY to an INSURED, or an employee of its parent, subsidiary or affiliate
arising out of and in the course of employment by the INSURED or its parent or subsidiary or affiliate including
BODILY INJURY or pecuniary loss to the spouse, child, parent, brother or sister of such injured employee. This
exclusion applies whether the INSURED may be liable as an employer or in any other capacity and to any obligation
to share damages with or repay another who must pay damages as a result of the BODILY INJURY.
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PEL 30 01 (Ed. 04 08)
6. Faulty Workmanship/Own Work
based upon or arising out of the costs to repair or replace faulty workmanship, construction, fabrication, installation,
assembly or remediation if such faulty workmanship, construction, fabrication, installation, assembly or remediation
was performed in whole or in part by an INSURED.
1. Hostile Acts
based upon or arising out of any consequence, whether direct or indirect, of declared or undeclared war, invasion, act
of foreign enemy, hostilities, civil war, rebellion, revolution, insurrection, or military or usurped power, or in defending
against any one or more of those.
8. Insured vs. Insured
based upon or arising out of any CLAIM by one INSURED against any other INSURED. This exclusion does not apply
to a CLAIM that arises out of an indemnification given by one INSURED to another INSURED as specified in a
contract that was submitted and approved by the Company and added to this Policy by endorsement.
9. Insured's Property/Bailee Liability
with respect to property damage to property owned, leased or operated by, or in the care, custody or control of, the
INSURED, even if such property damage is incurred to avoid or mitigate LOSS or CLEAN-UP COSTS which may be
covered under this Policy. This exclusion does not apply to REPLACEMENT COSTS.
10. Intentional Acts
based upon or arising out of a POLLUTION CONDITION that results from any RESPONSIBLE PERSON's intentional
disregard of, or deliberate, willful, or dishonest non-compliance with, any statute, regulation, ordinance, administrative
complaint, notice letter, or instruction by or on behalf of any governmental agency or representative.
11. Known Condition(s)
based on or arising out of any POLLUTION CONDITION that was known by or reported to any RESPONSIBLE
PERSON, but was not expressly reported in writing to the Company, before:
(a) the beginning of the POLICY PERIOD (as respects a POLLUTION CONDITION at any COVERED
LOCATION(S), or arising out of any CONTRACTING SERVICES, shown in the Declarations at the beginning of
the POLICY PERIOD), or
(b) the Company issues an endorsement to add:
I. the COVERED LOCATION(S) at which the POLLUTION CONDITION exists, or
ii. the CONTRACTING SERVICES from which the POLLUTION CONDITION arises,
to the Policy (as respects a POLLUTION CONDITION at any COVERED LOCATION(S), or arising out of any
CONTRACTING SERVICES, that was not shown in the Declarations at the beginning of the POLICY PERIOD).
Any such expressly reported POLLUTION CONDITION which is not otherwise excluded under this Policy by
endorsement is deemed to be first discovered on the date the COVERED LOCATION(S) or CONTRACTING
SERVICES, as applicable, were added to this Policy.
12. Lead -Based Paint
based upon or arising out of lead -based paint in, on, or applied to, any building or other structure. This exclusion does
not apply to lead -based paint in soil or in any watercourse or body of water including groundwater.
13. Material Change in Use
based upon or arising out of a change in the use of, or operations at, a COVERED LOCATION(S) from the use or
operations as of the date the COVERED LOCATION(S) became insured by this Policy, if that change materially
increases the likelihood or severity of a POLLUTION CONDITION or CLAIM.
14. Natural Occurring Material(s)
based upon or arising out of the existence, required removal, or abatement, of naturally occurring material(s). This
exclusion does not apply where such substances are present at a JOB SITE due to the performance of
(Page 6 of 12)
PEL 30 01 (Ed. 04 08)
CONTRACTING SERVICES or at a COVERED LOCATION(S) only because of human activities or processes. This
exclusion also does not apply to MOLD MATTER.
15. New Pollution Conditions at Divested Property
based upon or arising out of a POLLUTION CONDITION on, at, under or migrating from a COVERED LOCATION(S),
if the discharge, dispersal, release, seepage, migration or escape of those POLLUTANTS begins after such
COVERED LOCATION(S) is sold, given away, or abandoned by the INSURED, or condemned.
16. Products Liability
based upon or arising out of goods or products manufactured, sold, handled, distributed, altered or repaired by the
INSURED or by others trading under the INSURED's name, including any container thereof, any failure to warn, or
any reliance upon a representation or warranty made at any time with respect thereto, but only if the POLLUTION
CONDITION occurs away from the COVERED LOCATION(S) and after physical possession of such goods or
products has been relinquished to others.
17. Retroactive Date
based upon or arising out of a POLLUTION CONDITION that first commenced prior to the retroactive date stated in
the Declarations, including any further dispersal, migration or movement of that POLLUTION CONDITION on or after
that date.
18. Reverse Retroactive Date
based upon or arising out of a POLLUTION CONDITION that first commenced subsequent to the reverse retroactive
date stated in the Declarations.
19. Underground Storage Tank(s)
based upon or arising out of the existence of any UNDERGROUND STORAGE TANK(s). This exclusion does not
apply to UNDERGROUND STORAGE TANK(s):
(a) either closed, abandoned in place or removed, in accordance with all applicable federal, state, or provincial
regulations, prior to the inception date of this Policy; or
(b) endorsed to this Policy in the Underground Storage Tank(s) and Associated Piping Schedule, if any; or
(c) the existence of which is unknown by all RESPONSIBLE PERSONS as of the inception date of this Policy.
20. Vehicles
based upon or arising out of the ownership, maintenance, use, operation, loading or unloading of any AUTOMOBILE,
aircraft, watercraft, rolling stock or any other form of transportation, including any cargo carried thereby, beyond the
legal boundaries of a JOB SITE where CONTRACTING SERVICES are being performed or a COVERED
LOCATION(S). This exclusion does not apply to Coverage E — In -Bound and Out -Bound Contingent Transportation
Coverage.
SECTION V. EXTENDED REPORTING PERIOD
A. Automatic Extended Reporting Period
In the event of the termination of this insurance before the expiration date shown in the Declarations, the INSURED
shall be entitled to a ninety (90) day Automatic Extended Reporting Period for no additional premium. The Automatic
Extended Reporting Period shall apply as follows:
(1) A CLAIM first made against the INSURED during the POLICY PERIOD and reported to the Company, in writing,
during the ninety (90) days immediately following the effective date of such termination will be deemed to have
been made on the last day of the POLICY PERIOD, provided such CLAIM is otherwise covered by this Policy.
(2) A CLAIM first made against the INSURED and reported to the Company, in writing, during the ninety (90) days
immediately following the effective date of such termination will be deemed to have been made on the last day of
the POLICY PERIOD, provided such CLAIM arises from a POLLUTION CONDITION first discovered and
reported to the Company, in writing, prior to such termination, and is otherwise covered by this Policy.
(Page 7 of 12)
PEL 30 01 (Ed. 04 08)
The Automatic Extended Reporting Period does not apply where: (1) the Policy is terminated for fraud or non-payment
of premium; or (2) the INSURED has purchased other insurance to replace the insurance provided under this Policy.
For the purposes of Section V.A. — Automatic Extended Reporting Period, under this Policy:
(a) either cancellation or non -renewal shall be deemed to be a termination of this insurance; and
(b) in the event of non -renewal, the expiration date shown in the Declarations shall be deemed the effective date of
the termination.
B. Optional Extended Reporting Period
The FIRST NAMED INSURED shall be entitled to purchase an Optional Extended Reporting Period upon cancellation
or non -renewal of the Policy, subject to the following terms and conditions:
The FIRST NAMED INSURED shall be entitled to purchase an Optional Extended Reporting Period upon payment of
an additional premium of not more than 200% of the full Policy Premium.
The Optional Extended Reporting Period shall be effective for three (3) consecutive three -hundred and sixty-five (365)
day periods commencing immediately following the effective date of cancellation or non -renewal. The FIRST NAMED
INSURED must elect to purchase this Optional Extended Reporting Period in writing within thirty (30) days from the
cancellation or non -renewal of the Policy. The Automatic Extended Reporting Period of ninety (90) days will be
merged into this period and is not in addition to this period.
The Optional Extended Reporting Period shall only apply to CLAIMS first made against the INSURED during the
Optional Extended Reporting Period, but only by reason of a POLLUTION CONDITION first discovered and reported
to the Company, in writing, during the POLICY PERIOD, and is otherwise covered by this Policy.
The Optional Extended Reporting Period does not apply where: (1) the Policy is terminated for fraud or non-payment
of premium; or (2) the INSURED has purchased other insurance to replace the insurance provided under this Policy.
For the purposes of Section V.B. — Optional Extended Reporting Period under this Policy:
(a) either cancellation or non -renewal shall be deemed to be a termination of this insurance; and
(b) in the event of non -renewal, the expiration date shown in the Declarations shall be deemed the effective date of
the termination.
It is a condition precedent to the operation of the rights granted under Section V.B. that payment of the appropriate
premium shall be made not later than thirty (30) days after expiration in the case of non -renewal or prior to
cancellation in the case of cancellation.
For purposes of Section V., the quotation of different Limits of Liability, Self -Insured Retentions, terms or conditions by the
Company shall not be construed as termination or non -renewal of this Policy.
SECTION VI. LIMIT OF LIABILITY AND SELF -INSURED RETENTION
A. The.Limits of Liability and Self -Insured Retention shown in the Declarations and the rules below fix the most the
Company will pay regardless of the number of INSUREDS, COVERED LOCATION(S), CONTRACTING SERVICES,
POLLUTION CONDITIONS, CLAIMS made, or persons or organizations making CLAIMS.
B. For purposes of this Policy, the same or related POLLUTION CONDITIONS at any one JOB SITE where
CONTRACTING SERVICES are performed, or at any one COVERED LOCATION, shall be deemed a single
POLLUTION CONDITION.
C. This Policy will pay covered LOSS, CLEAN-UP COSTS, LEGAL EXPENSE or any other coverages afforded under this
Policy or any endorsements attached hereto only (1) in excess of the applicable Self -Insured Retention Amount stated
(Page 8 of 12)
PEL 30 01 (Ed. D4 08)
in the Declarations and (2) subject to the applicable Limit of Liability stated in the Declarations and the other terms
and conditions of this Policy.
D. The Self -Insured Retention Amount is to be borne by the INSURED and is not to be insured unless the Company has
expressed its prior consent in writing to the FIRST NAMED INSURED. If the same or related POLLUTION
CONDITION results in coverage under more than one coverage section for which a limit is stated in the Declarations
or under any other coverage afforded under this Policy or any endorsements attached hereto, only the single highest
Self -Insured Retention amongst such applicable coverages shall apply.
E. Each POLLUTION CONDITION Limit — Subject to Items F. and G. below, the most the Company will pay for the sum
of all LOSS, CLEAN-UP COSTS, and LEGAL EXPENSE under each coverage section stated in the Declarations, or
under any other coverages afforded under this Policy or any endorsements attached thereto, arising out of the same
or related POLLUTION CONDITION is the Each POLLUTION CONDITION Limit applicable to that particular
coverage.
F. Coverage Section Aggregate Limit — Subject to Item G. below, the Company's total liability for the sum of all LOSS,
CLEAN-UP COSTS, and LEGAL EXPENSE under each coverage section stated in the Declarations, or under any
other coverages afforded under this Policy or any endorsements attached thereto, during the POLICY PERIOD or, if
applicable, the EXTENDED REPORTING PERIOD, shall not exceed the Coverage Aggregate Limit of Liability
applicable to that particular coverage.
G. Policy Aggregate Limit - The Company's total liability for the sum of all LOSS, CLEAN-UP COSTS, LEGAL EXPENSE
and any other coverages afforded under this Policy or any endorsements attached thereto, shall not exceed the Policy
Aggregate Limit of Liability as stated in the Declarations.
H. Any LOSS, CLEAN-UP COSTS, LEGAL EXPENSE or any other coverages afforded under this Policy or any
endorsements attached hereto, incurred and reported to the Company, in writing, over more than one POLICY
PERIOD, and resulting from the same or related POLLUTION CONDITION, shall be considered a single POLLUTION
CONDITION. The LOSS, CLEAN-UP COSTS, LEGAL EXPENSE or any other coverages afforded under this Policy or
any endorsements attached thereto will be subject to the same Limit of Liability and Self -Insured Retention Amount(s)
in effect at the time the POLLUTION CONDITION was first reported to the Company, in writing, during the POLICY
PERIOD or, if applicable, the EXTENDED REPORTING PERIOD.
SECTION VII. REPORTING, DEFENSE, SETTLEMENT AND COOPERATION
A. As a condition precedent to the coverage hereunder, in the event a CLAIM is made against the INSURED for LOSS or
CLEAN-UP COSTS, or a POLLUTION CONDITION is first discovered that results in a LOSS or CLEAN-UP COSTS,
written or oral notice containing particulars sufficient to identify the INSURED and also reasonably obtainable
information with respect to the time, place and circumstances thereof, and the names and addresses of the injured
and of available witnesses, shall be given by or for the INSURED to the Company or any of its authorized agents as
soon as practicable. In the event of oral notice, the INSURED agrees to furnish a written report as soon as
practicable. The INSURED shall also forward to the Company every demand, notice, summons, order or other
process received by the INSURED or the INSURED's representative as soon as practicable.
B. No costs, charges or expenses shall be incurred, nor payments made, obligations assumed or remediation
commenced, without the Company's consent which shall not be unreasonably withheld. This provision does not apply
to costs incurred by the INSURED on an emergency basis, where delay on the part of the INSURED would cause
injury to persons or damage to property or increase significantly the cost of responding to a POLLUTION
CONDITION. The INSURED shall notify the Company of all such expenses immediately after the emergency ends.
C. The Company shall have the right to designate legal counsel for the investigation, adjustment and defense of
CLAIMS. The Company shall consult with the INSURED in conjunction with the selection of counsel. The Company
shall have the right and duty to defend an INSURED against any CLAIM for LOSS or for CLEAN-UP COSTS,
however, the Company will have no duty to defend the INSURED for LOSS or for CLEAN-UP COSTS to which this
Policy does not apply.
D. Once the applicable Limit of Liability has been exhausted, the Company shall not be obligated to defend or continue
to defend any CLAIM or pay for any LOSS, CLEAN-UP COSTS or other coverage afforded under this Policy.
(Page 9 of 12)
PEL 30 01 (Ed. 04 08)
E. The Company may, where allowable by law, appoint one counsel to defend all of the INSUREDs under this Policy on
a joint defense basis.
F. In the event that the INSURED is entitled by law to select independent counsel (Cumis Counsel) to defend the
INSURED at the Company's expense, the attorney's fees and all other litigation expenses incurred by the Company
shall be limited to the same rates that the Company would pay to counsel selected by the Company to defend a
similar CLAIM in the location where the CLAIM arose or is being defended. The Company may require that such
counsel meet certain minimum qualifications and maintain errors and omissions insurance. The INSURED agrees that
such counsel will timely respond to the Company's request for information.
G. The INSURED shall not admit liability or settle any CLAIM without the Company's consent. If the Company
recommends a monetary settlement of a CLAIM acceptable to a claimant:
1. for an amount within the Self -Insured Retention Amount and the INSURED refuses such settlement, the Company
shall not be liable for any LOSS, CLEAN-UP COSTS, LEGAL EXPENSE, or any other coverages afforded under
this Policy or any endorsements attached thereto in excess of the Self -Insured Retention Amount; or
2. for a total amount in excess of the Self -Insured Retention and within the applicable Limits of Liability and the
INSURED refuses such settlement, the Company's liability for LOSS, CLEAN-UP COSTS, LEGAL EXPENSE, or
any other coverages afforded under this Policy or any endorsements attached hereto, shall be limited to that
portion of the sum of (a) the recommended settlement and (b) the costs, charges and expenses already incurred
as of the date of the INSURED's refusal, which exceeds the Self -Insured Retention Amount and is within the Limit
of Liability.
H. All INSUREDs shall cooperate with the Company and upon the Company's request shall submit to examination by a
representative of the Company, under oath if required, and shall attend hearings, depositions and trials and assist in
effecting settlement, securing and giving evidence, obtaining the attendance of witnesses and in the conduct of suits,
as well as in the investigation and/or defense, all without charge to the Company. The INSURED shall further
cooperate with the Company and do whatever is necessary to secure and enforce any rights of indemnity, contribution
or apportionment which the INSURED may have.
SECTION VIII. 'TRANSFER OF LEGAL DEFENSE DUTIES
A. If the Company believes that any of the applicable Limits of Liability stated in the Declarations has been or soon will
be exhausted in defending a CLAIM, or that the Company has paid out or will soon pay out the Policy Aggregate Limit
of Liability stated in the Declarations, the Company will so notify the FIRST NAMED INSURED in writing as soon as
possible. The Company will advise. that its duty to defend CLAIMS seeking damages subject to those limits has
terminated, subject to payment of the limits; and that it will no longer handle the defense of any CLAIM for which
notice is given after the date it sends out such notice. The Company will take prompt and appropriate steps to transfer
control of any existing defense prior to exhaustion of the limits to the FIRST NAMED INSURED. The FIRST NAMED
INSURED agrees to reimburse the Company for any costs which the Company bears in connection with the transfer
of the defense.
B. The Company will take appropriate steps necessary to defend the CLAIM during the transfer of the defense and avoid
any unfavorable legal action provided that the INSURED cooperates in the transfer of the duties of the defense.
C. The Company's failure to comply with any of the provisions of Section VIII. shall in no way obligate the Company to
defend or continue to defend any CLAIM, or to pay any LOSS, CLEAN-UP COSTS or other sum covered under this
Policy, after exhaustion of an applicable Limit of Liability.
SECTION IX. CONDITIONS
A. ACTION AGAINST COMPANY - No action brought by an organization or entity, other than an INSURED, shall lie
against the Company unless, as a condition precedent thereto, the INSURED has fully complied with all of the terms
of this Policy and, the amount of the INSURED's obligation to pay shall have been finally determined either by
judgment against the INSURED after actual trial or by written agreement of the INSURED, the claimant and the
Company.
(Page 10 of 12)
PEL 30 01 (Ed. 04 08)
Any person or organization or the legal representative thereof who has secured such judgment or written agreement
shall thereafter be entitled to recover under this Policy to the extent of the insurance afforded by this Policy. No
person or organization shall have any right under this Policy to join the Company as a party to any action against the
INSURED to determine the INSURED's liability, nor shall the Company be impleaded by the INSURED or his legal
representative.
B. ASSIGNMENT - This Policy shall be void as to the assignee or transferee, if assigned or transferred without written
consent of the Company. This Policy can be assigned automatically without the consent of the Company to any first
mortgagee of a COVERED LOCATION(S). The FIRST NAMED INSURED shall notify the Company of such
assignment as soon as possible.
C. BANKRUPTCY - Bankruptcy or insolvency of the INSURED or of the INSURED's estate shall not relieve the
Company of any of its obligations hereunder.
D. CANCELLATION This Policy may be cancelled by the FIRST NAMED INSURED by surrender thereof to the
Company or any of its authorized agents or by mailing to the Company written notice stating when thereafter the
cancellation shall be effective. In the event of cancellation by the FIRST NAMED INSURED, the return premium shall
be computed in accordance with the customary short rate table and procedure after applying the minimum earned
premium percentage stated in the Declarations. If a CLAIM is made, a POLLUTION CONDITION is discovered or
coverage is otherwise afforded under this Policy, then the premium shall be considered fully earned by the Company
and the INSURED is not entitled to a return premium upon cancellation.
This Policy may be cancelled by the Company by mailing to the FIRST NAMED INSURED at the address shown in
the Declarations, written notice stating when not less than ninety (90) days [ten (10) days for non-payment of
premium] thereafter such cancellation shall be effective. The mailing of notice as aforesaid shall be sufficient proof of
notice. The time of surrender or the effective date and hour of cancellation stated in the notice shall become the end
of the POLICY PERIOD. If the Company cancels, earned premium shall be computed pro rata. Premium adjustment
may be made either at the time cancellation is affected or as soon as practicable after cancellation becomes effective,
but payment or tender of unearned premium is not a condition of cancellation.
This Policy may be cancelled by the Company for the following reasons: (1) Non-payment of premium, or (2) Fraud or
material misrepresentation on the part of the INSURED, such as can be proven in a court of law.
E. CHANGES - Notice to any agent or knowledge possessed by any agent or by any other person shall not effect a
waiver or a change in any part of this Policy or estop the Company from asserting any right under the terms of this
Policy; nor can the terms of this Policy be waived or changed, except by an endorsement issued by the Company to
form a part of this Policy.
F. CHOICE OF LAW - All matters arising hereunder, including questions related to the validity, interpretation,
performance and enforcement of this Policy, shall be determined in accordance with the law and practice of the State
of New York (not including New York's choice of law rules).
G. CONSENT - Where the consent of the Company or the INSURED is required under this Policy, such consent shall not
be unreasonably withheld, delayed, conditioned or denied.
H. DECLARATIONS AND REPRESENTATIONS - By acceptance of this Policy, the INSURED agrees that the
statements contained in the Declarations, the application and any other supplemental materials and information
submitted in connection with the application or any amendments to the Policy during the POLICY PERIOD are the
INSURED's declarations and representations, that they shall be deemed material, that this Policy is issued in reliance
upon the truth of such declarations and representations and that this Policy embodies all agreements existing
between the INSURED and the Company or any of its agents relating to this insurance.
1. HEADINGS - The descriptions in the headings of this Policy are solely for convenience and form no part of the Policy
terms and conditions.
J. INSPECTION AND AUDIT - The Company shall be permitted but not obligated to inspect and monitor on a continuing
basis the INSURED's property or operations and any JOB SITE and COVERED LOCATION(S), at any time. Neither
the Company's right to make inspections and monitor, nor the actual undertaking thereof, nor any report thereon, shall
(Page 11 of 12)
PEL 30 01 (Ed. 04 08)
constitute an undertaking, on behalf, of the INSURED or others, to determine or warrant that property or operations
are safe, healthful or conform to acceptable engineering practice or are in compliance with any law, rule or regulation.
Access for the inspection and audit will be coordinated through the broker or agent of the FIRST NAMED INSURED.
K. JURISDICTION AND VENUE - It is agreed that in the event of the failure of the Company to pay any amount claimed
to be due hereunder, the Company and the INSURED will submit to the jurisdiction of the State of New York and will
comply with all the requirements necessary to give such court jurisdiction. Nothing in this clause constitutes or should
be understood to constitute a waiver of the Company's right to remove an action to a United States District Court.
L. OTHER INSURANCE Subject to Section VI., Limit of Liability and Self -Insured Retention, this insurance shall apply
only in excess of the sum of the Self -Insured Retention amount stated in the Declarations and the applicable limits of
any other valid and collectible insurance available to the INSURED, whether such other insurance is stated to be
primary, pro rata, contributory, excess, contingent or otherwise, unless such other insurance is written only as specific
excess insurance over the applicable Limits of Liability of this Policy.
M. SEVERABILITY Except with respect to the Limits of Liability, Self -Insured Retention, Exclusion 8. ("Insured vs.
Insured") and any rights and duties assigned in this Policy to the FIRST NAMED INSURED, this insurance applies as
if each INSURED were the only INSURED and separately to each INSURED against whom a CLAIM is made. Any
misrepresentation, act or omission that is in violation of a term, duty or condition under this Policy by one INSURED
shall not by itself affect coverage for another INSURED under this Policy. This Condition M. shall not apply to an
INSURED who is a parent, subsidiary or affiliate of the INSURED which committed the misrepresentation, act or
omission referenced above.
N. SOLE AGENT -The FIRST NAMED INSURED stated in the Declarations shall act on behalf of all INSUREDS for the
payment or return of premium, receipt and acceptance of any endorsement issued to form a part of this Policy, giving
and receiving notice of cancellation or non -renewal, and the exercise of the rights provided under Section V. —
EXTENDED REPORTING PERIOD.
O. SUBROGATION — If the INSURED has rights to recover, from another person or organization, all or any part of a
payment the Company makes under this Policy, those rights are transferred to the Company. The INSURED shall
execute and deliver instruments and papers and do whatever else is necessary to secure such rights. The INSURED
shall do nothing to prejudice such rights. Any monies recovered as a result of subrogation proceedings shall accrue
first to the INSURED to the extent of any payments it made in excess of the limits of liability, then to the Company to
the extent of its payment under the Policy, and then to the INSURED to the extent of its payment of the self -insured
retention. Expenses incurred in such subrogation proceedings shall be apportioned amongst the INSURED and
Company in the proportion that each interested party's share in the recovery bears to the total recovery.
(Page 12 of 12)
GREATAAIEJICA,r�r Administrative Offices
580 Walnut Street
INSURANCE GROUP Cincinnati, Ohio 45202
Tel: 1-513-369-5000
WIT 00 02 (Ed. 04 08)
IN WITNESS WHEREOF, we have caused this policy to be executed and attested, and, if required by state law, this
policy shall not be valid unless countersigned by our authorized representative.
Secretary
(Page 1 of 1)
President
Administrative Offices GREAT A
pp��//�� �, SLN 90 00 (Ed. 04 08)
R {. A �. 560 Walnut Street
Cincinnati, Oh 45202
INSURANCE GROUP
Tel: 1-513-369-5000
Policy No: PEL 8629840 00
FORMS AND ENDORSEMENTS SCHEDULE
It is hereby understood and agreed the following forms and endorsements are attached to and are a part of this policy:
Form and Edition Form Description
PEL 30 00 04/08 PREMISES ENVIRONMENTAL LIABILITY INSURANCE DECLARATIONS
PEL 30 01 04/08 PREMISES ENVIRONMENTAL LIABILITY INSURANCE POLICY
PEL 34 18 04/08 EXCLUSION OF TERRORISM COVERAGE
PEL MANUS 03/09 UNDERGROUND STORAGE TANK SELF -INSURED RETENTION ENDORSEMENT
PEL 31 30 04/08 UNDERGROUND STORAGE TANK SCHEDULE
(Page 1 of 1)
i��ATq��.,p�/��7��
GREAT
Administrative Offices
580 Walnut Street
INSURANCE GROUP
Cincinnati, Oh 45202
Tel: 1-513-368-5000
ENDORSEMENT #1
This endorsement, effective 12.01 a.m., 3/23/2009, forms a part of Policy No. PEL 8629840 00
issued to CITY OF VERNON By GREAT AMERICAN E & S INSURANCE COMPANY
PEL 34 18 (Ed. 04 08)
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
TERRORISM COVERAGE ENDORSEMENT
Pursuant to the requirements of the federal Terrorism Risk Insurance Act the INSURED has been provided notice that the
INSURED may elect to purchase coverage for loss covered under this Policy arising directly or indirectly as a result of
CERTIFIED ACT(s) OF TERRORISM and the premium charge for such coverage.
After receiving such notice, the INSURED has elected to purchase this Policy with coverage for such CERTIFIED ACT(s)
OF TERRORISM. Therefore, in consideration of the premium paid, the INSURED and the Company agree to the
following Policy changes;
SECTION IV. EXCLUSIONS, Hostile Acts is deleted and replaced with the following:
Hostile Acts
based upon or arising out of any consequence, whether direct or indirect, of declared or undeclared war, invasion,
act of foreign enemy, hostilities, and whether war be declared or not, civil war, rebellion, revolution, insurrection,
or military or usurped power, or in defending against any one or more of those.
This exclusion does not apply to CERTIFIED ACT(s) OF TERRORISM subject to the CAP ON CERTIFIED
TERRORISM LOSSES.
SECTION II. DEFINITIONS is amended by the addition of the following:
CERTIFIED ACT(s) OF TERRORISM means an act that is certified by the Secretary of the Treasury, in
concurrence with the Secretary of State and the Attorney General of the United States, to be an act of terrorism
as defined in Section 102(1) of the Terrorism Risk Insurance Act.
CAP ON CERTIFIED TERRORISM LOSSES, as established in the Terrorism Risk Insurance Act, means if the
aggregate insured losses attributable to CERTIFIED ACT(s) OF TERRORISM exceed $100 billion in a Program
Year (defined as January 1 through December 31) and we have met our insurer deductible under the federal
Terrorism Risk Insurance Act, the Company shall not be liable for the payment of any portion of the amount of
such losses that exceeds $100 billion, and in such case insured losses up to that amount are subject to pro rata
allocation in accordance with procedures established by the Secretary of the Treasury.
All other terms and conditions remain the same.
(Page 1 of 1)
�] ��.,nT/��
G �Tl]lY1C[�.l{.,A
Administrative Offices
�T
560Walnut Street
INSURANCE GROUP .
Cincinnati, Oh 45202
Tel: 1-513-369-5000
ENDORSEMENT #2
This endorsement, effective 12.01 a.m., 3/23/2009, forms apart of Policy No. PEL 8629840 00
issued to CITY OF VERNON By GREAT AMERICAN E & S INSURANCE COMPANY
PEL MANUS (Ed. 03 09)
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
UNDERGROUND STORAGE TANK SELF -INSURED RETENTION ENDORSEMENT
This endorsement modifies insurance provided under the following:
PREMISES ENVIRONMENTAL LIABILITY INSURANCE POLICY
The INSURED and the Company agree to the following Policy change(s):
Item 3. of the Declarations, Coverages and Coverage Section Limits of Liability and Self -Insured Retention is amended by
the addition of the following:
Notwithstanding the forgoing, a Self -Insured Retention of $50,000 will apply to LOSS, CLEAN-UP COSTS, and LEGAL
EXPENSE because of a POLLUTION CONDITION arising from or related to any UNDERGROUND STORAGE TANK
scheduled onto this Policy.
All other terms and conditions remain the same.
(Page 1 of 1)
/f '��nn�� MAT PEL 31 30 (Ed. 04 08)
GMAT Ad
Waltrat SlrO Offices
�- "- "` Cincinnati, Oh 45202
INSURANCE GROUP Tel: 1-513-369-5000
ENDORSEMENT #3
This endorsement, effective 12:01 a.m., 3/23/2009, forms a part of Policy No. PEL 8629840 00
issued to CITY OF VERNON By GREAT AMERICAN E & S INSURANCE COMPANY
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
UNDERGROUND STORAGE TANK SCHEDULE
This endorsement modifies insurance provided under the following:
PREMISES ENVIRONMENTAL LIABILITY INSURANCE POLICY
The INSURED and the Company agree to the following Policy change(s):
Section I., INSURING AGREEMENTS, A. Coverage A — POLLUTION LEGAL LIABILITY and B. Coverage B — ON -SITE
AND OFF -SITE CLEAN-UP COSTS apply to the UNDERGROUND STORAGE TANK(s) listed below:
COVERED LOCATION
UNDERGROUND
STORAGE TANK
CAPACITY
UNDERGROUND STORAGE TANK
CONTENTS
4305 Santa Fe Avenue, Vernon, CA 90058
10,000
Diesel
4305 Santa Fe Avenue, Vernon, CA 90058
8,000
Unleaded Gasoline
4305 Santa Fe Avenue, Vernon, CA 90058
8,000
Unleaded Gasoline
All other terms and conditions remain the same.
(Page 1 of 1)
March 30, 2010
Arthur J. Gallagher & Co.
Insurance Brokers of California, Inc.
ATTN: Nasreen Kopecky, Account Manager
15 Enterprise, Suite 200
Aliso Viejo, CA 92656
Re: Pollution Legal Liability Insurance Policy with Great American Insurance Group
Dear Ms. Kopecky:
Transmitted herewith is a copy of Resolution No. 2010-45 that was approved by City Council on
March 29, 2010.
If you have any questions regarding this matter, please call Mr. Willard Yamaguchi at (323) 583-
8811 ext. 175.
Very t ly yours,
WILLARD G. Y U
City Clerk
WY:dj
c: Willard Yamaguchi
Ana Barcia
Resolution No. 2010-45
clusly Industrial
STAFF REPORT
Risk Management
DATE: March 24, 2010
���o RECEIVE®
TO: Honorable Mayor and City Council
MAR 2 5 2010
FROM: Willard G. Yamaguchi, Risk Manager C�
CITY CLERK'S OFFICE
RE Pollution Legal Liability Renewal for 2010-11
For the non-exclusive franchise trash haulers, the City has a pollution liability policy for
coverage of disposal sites in the event that a condition arises at a site or during transit. For 2009-
10, the underwriter is Great American Insurance. The cost of the premium is $18,508.. The
policy would have expired on March 23, 2010, but after discussions with Great American over
some issues of concern, the Risk Manager obtained a binder from Great American.
For 2010-11, Risk Management obtained quotes from Great American Insurance, Chubb Custom
Insurance Company, and Markel Insurance Company.. The premium for the policy renewal with
Great American increased to $18,662, exclusive of surplus lines taxes and fees. This is
approximately 1.0% more than last year.
Markel Insurance Company provided a non-competitive bid at $36,000. Chubb provided a bid at
$16,824. However, Great American has agreed to provide coverage to known and unknown sites
where waste is transported. We believe that feature alone makes Great American the most
attractive of the choices presented.
Fiscal Impact
The fiscal impact is $18,662, exclusive of surplus lines taxes and fees.
Recommendation
Risk Management recommends that the City Council approve the proposal from Great American
Insurance Company for pollution liability for landfill and transit cleanup in the amount of
$18,662, exclusive of surplus lines taxes and fees.
WGY/ab
cc: Donal O'Callaghan
I V �1
MAR 2 5 2010
Inter Office Memorandum
Risk Management
DATE: March 24, 2010 �
�\Z
TO: Donal O'Callaghan, City Administrator
FROM: Willard G. Yamaguchi, Risk Manager V14D
RE: Pollution Legal Liability Renewal for 2010-11
For the non-exclusive franchise trash haulers, the City has a pollution liability policy for
coverage of disposal sites in the event that a condition arises at a site or during transit. For 2009-
10, the underwriter is Great American Insurance. The cost of the premium is $18,508. The
policy would have expired on March 23, 2010, but after discussions with Great American over
some issues of concern, the Risk Manager obtained a binder from Great American.
For 2010-11, Risk Management obtained quotes from Great American Insurance, Chubb Custom
Insurance Company, and Markel Insurance Company. The premium for the policy renewal with
Great American increased to $18,662, exclusive of surplus lines taxes and fees. This is
approximately 1.0% more than last year.
Markel Insurance Company provided a non-competitive bid at $36,000. Chubb provided a bid at
$16,824. However, Great American has agreed to provide coverage to known and unknown sites
where waste is transported. We believe that feature alone makes Great American the most
attractive of the choices presented.
Fiscal Impact
The fiscal impact is $18,662, exclusive of surplus lines taxes and fees.
Recommendation
Risk Management recommends that the City Council approve the proposal from Great American
Insurance Company for pollution liability for landfill and transit cleanup in the amount of
$18,662, exclusive of surplus lines taxes and fees.
WGY/ab
PEAR 2 5 2010
CITY OF VERNON
March 9, 2010
Mr. Willard G. Yamaguchi
City of Vernon
4305 Santa Fe Avenue
Vernon, CA, 90058
Re: Renewal Policy: Pollution Legal Liability Insurance Renewal
Effective: March 23, 2610 to March 23, 2011
Dear Willard:
Your Pollution Legal Liability policy will be renewing shortly. Attached is our quotation for coverage. We would
like to outline the following notable points for your consideration:
• The insurance carrier is Great American E & S Insurance Company
• The renewal premium is $18,662 and is subject to a 25% minimum earned premium
• In order to bind coverage we need the following:
➢ Signed forms: Authorization to Bind, D-1 Form,
• The A.M. Best is A IV. Our A.M. Best's Rating Summary is attached for your review. "If the above coverage is
placed with a Non -Admitted carrier, the carrier is doing business in the state as a surplus lines or non -admitted
carrier. As such, this carrier is not subject to the same regulations which apply to an admitted carrier nor do they
participate in any insurance guarantee fund applicable in that state."
• Any entity not named in this proposal may not be an insured entity. This may not include partnerships and joint
ventures.
• The policy will not be auditable. The premium is based upon number of tanks.
• Defense costs are limited and included within the policy limits.
• See Policy form Section "Exclusions" which are coverages NOT included in your program
• Policy provides coverage for non -owned property Landfill/Transportations ONLY
We are not aware of any changes in your exposures to loss, nor are we aware of any changes in your business
operations that would necessitate additional coverage options. Please notify us immediately if you are planning
any new business operations:
IMPORTANT: The quotation (s) attached constitute certain of the terms and conditions of the insurance
proposed by the insurer(s), based on the information provided by your company. It does not include all the
terms, coverages, exclusions, limitations, conditions of the actual policy contract language. The insurance
policy(ies) themselves must be read for those details. Policy forms for your reference will be made available upon
request.
We appreciate your business and look forward to working with you in the coming year. Please contact me if you
have any questions.
Sincerely
Nasreen Kopecky
Pvblic Entity and Scholastic 13ivision
1
CITY OF VERNON
PROPOSED CARRIER RATINGS AND ADMITTED STATUS
ADMITTED j
PROPOSED CARRIERS
A. M. BEST'S RATING
-NON-ADMITTED
Great American E&S
A IV
Non -Admitted
Insurance Company
Chubb Custom Insurance
A++ XV
Non -Admitted
If the above indicates coverage is placed with a Non Admitted Carrier, the carrier is doing
business in the state as a surplus Imes or non -admitted carrier. As such, this carrier is not
subject to the same regulations which apply to an admitted carrier nor do they participate in
any insurance guarantee fund applicable in that state.
Guide to Best Ratings
Rating Levels and Categories
Level Category Level Category Level Category
A++, A+ Superior B, B- ...................... Fair D...................................... Poor
A, A- .......Excellent C++, C+...... Marginal EUnder Regulatory Supervision
B++, B+Very Good C, C- ................... Weak F...................... In Liquidation
S ............... Rating Suspended
Financial Size Categories
(In $000 of Reported Policyholders' Surplus Plus Conditional Reserve Funds)
FSC I
Up to 1,000
FSC IX
250,000
to
500,000
FSC II
1,000
to
2,000
FSC X
500,000
to
750,000
FSC III
2,000
to
5,000
FSC XI
750,000
to
1,000,000
FSC IV
5,000
to
10,000
FSC XII
1,000,000
to
1,250,000
FSC V
10,000
to
25,000
FSC XIII
1,250,000
to
1,500,000
FSC VI
25,000
to
50,000
FSC XIV
1,500,000
to
2,000,000
FSC VII
50,000
to
100,000
FSC XV
2,000,000
or more
FSC VIII
100,000
to
250,000
Best's Insurance Reports, published annually by A.M. Best Company, Inc., presents comprehensive
reports on the financial position, history, and transactions of insurance companies operating in the
United States and Canada. Companies licensed to do business in the United States are assigned a Best's
Rating which attempts to measure the comparative position of the company or association against
industry averages.
Copies of the Best's Insurance Reports on the insurance companies are available upon your request.
Gallagher companies use A.M. Best & Co.'s rating services to evaluate the financial condition of insurers
whose policies we propose to deliver. The rating of the carrier and the year of publication of that rating
are indicated. Gallagher companies make no representations and warranties concerning the solvency of
any carrier, not does it make any representation or warranty concerning the rating of the carrier which
may change.
Nblic i redly and Sctuokwdr- Division
2
CITY OF VERNON
IMPORTANT DISCLOSURES
The proposal is an outline of certain of the terms and conditions of the insurance proposed by the
insurers, based on the information provided by your company. It does not include all the terms,
coverages, exclusions, limitations, conditions of the actual policy contract language. The insurance
policies themselves must be read for those details. Policy forms for your reference will be made
available upon request.
We will not be operating in a fiduciary capacity, but only as your broker, obtaining a variety of coverage
terms and conditions to protect the risks of your enterprise. We will seek to bind those coverages based
upon your authorization; however, we can make no warranties in respect to policy limits or coverage
considerations of the carrier. Actual coverage is determined by policy language, so read all policies
carefully. Contact us with questions on these or any other issues of concern.
Terrorism Act Disclaimer: The current TRIA/TRIPRA program may not cover all terrorism losses..
While the most recent legislation eliminated the distinction between foreign and domestic acts of
terrorism, a number of lines of coverage excluded under the TRIER legislation passed in 2005 remain
excluded, including commercial automobile, burglary and theft insurance, surety insurance, farm owners
multiple perils and professional liability (although directors and officers liability is specifically included).
If such excluded coverages are required, we recommend that you consider purchasing a separate
terrorism policy. Please note that a separate terrorism policy for these excluded coverages may be
necessary to satisfy loan covenants or other contractual obligations.
The information contained in this proposal is based on the historical loss experience and exposures
provided to Arthur J. Gallagher & Co. Insurance Brokers of California, Inc. This proposal is not an
actuarial study. Should you wish to have this proposal reviewed by an independent actuary, we will be
pleased to provide you with a listing of actuaries for your use.
ftblic En ity,Md Sclura mdr. t]ivisicu�
�:_s�-�
CITY OF VERNON
COMPENSATION DISCLOSURE
One of the core values highlighted in The Gallagher Way states, "We are an Open Society," and our open
society extends to the compensation Gallagher receives. For more information on Gallagher's compensation
arrangements, please visit http://www.ajg.com/compdisclosure. In general, Gallagher may be compensated
as follows:
Gallagher Companies are primarily compensated from the usual and customary commissions or fees
received from the brokerage and servicing of insurance policies, annuity contracts, guarantee
contracts and surety bonds (collectively "insurance coverages") handled for a client's account, which
such commissions and fees may vary from company to company and insurance coverage to insurance
coverage. As permitted by law, Gallagher companies occasionally receive both commissions and --
fees. In placing, renewing, consulting on or servicing your insurance coverages, Gallagher
Companies may participate in contingent commission arrangements with insurance companies that
provide for additional contingent compensation if underwriting, profitability, volume or retention
goals are achieved. Such goals are typically based on the total amount of certain insurance coverages
placed by Gallagher with the insurance company, not on an individual policy basis. As a result,
Gallagher may be considered to
have an incentive to place your insurance coverages with a particular insurance company.
2. Gallagher Companies may also receive investment income on fiduciary funds temporarily held by
them, such as premiums or return premiums.
Gallagher Companies may access other facilities, including wholesalers, reinsurance intermediaries,
captive managers, underwriting managers and others that act as intermediaries for both Gallagher and
other brokers in the insurance marketplace. Gallagher Companies may own some of these facilities,
in whole or in part. If such a facility was utilized in the placement of a client's account, the facility
may have earned and retained customary brokerage commission or fees for its work.
4. Gallagher assists its customers in procuring premium finance quotes and unless prohibited by law
may earn compensation for this value added service.
If you have specific questions about the compensation received by Gallagher and its affiliates in relation to
your insurance placements, please contact your Gallagher representative for more details.
In the event you wish to register a formal complaint regarding compensation Gallagher receives from
insurers or third parties, please send an e-mail to Compensation_Complaints@ajg.com or send a letter to:
AVC Compliance Officer
Arthur J. Gallagher & Co.
Two Pierce Place, 20`h Floor
Itasca, IL 60143
PFkblyc End fy and Scholastic Division
4
CITY OF VERNON
CONTINGENT AND SUPPLEMENTAL COMMISSION DISCLOSURE
Effective October 1, 2009, Arthur J. Gallagher & Co., and its subsidiaries operating as insurance brokers
under the corporate holding company known as Arthur J. Gallagher Brokerage & Risk Management Services,
LLC, resumed participating in "Contingent Income Agreements" which are routinely offered by insurance
companies to brokers, after voluntarily foregoing the benefit of this type of compensation since January 1,
2005. In placing, renewing, consulting on or servicing your insurance coverages, Gallagher companies may
participate in contingent commission arrangements with insurance companies that provide for additional
contingent compensation if certain underwriting, profitability, volume or retention goals are achieved: Such
goals are typically based on the total amount of certain insurance coverages placed by Gallagher with the
insurance company, not on an individual policy basis. As a result, Gallagher may be considered to have an
incentive to place your insurance coverages with a particular insurance company.
During the time Gallagher's retail operations did not accept contingent commissions, some insurance
markets, including Gallagher owned intermediaries, modified their commission schedule with Gallagher,
resulting in an increase in some commission rates. The additional commissions, commonly referred to as
"supplemental commissions", are known at the effective date of the policy, but some insurance companies
are paying the commission increase apart and later from when the commission is normally paid at policy
issuance.
Unlike contingent commissions, supplemental commission payments are determined without regard to any
performance factors which are contingent on future growth, retention, profitability, etc. The following
markets including Gallagher owned entities, and their affiliated companies may pay Gallagher supplemental
commission:
• Chubb Companies
• CNA Companies
• CRC Insurance Services
• Crum & Forster Companies
• Fireman's Fund Companies
• Hartford Companies
• Hartford Steam Boiler
• Liberty Mutual Companies
• Munich Re America
• Navigators Group
• Travelers Companies
• Westfield Companies
• Zenith Companies
• Zurich North America Companies
• Arthur J. Gallagher (UK)/Risk Placement Services (RPS)
The contingent and supplemental commission ranges from less than 1% up to 10% of written or earned
premium on eligible lines of business, not all lines of business qualify, and supplemental coniinission is not
paid on policies written net of commission (zero commission).
NOTE: Upon request, your Gallagher representative can provide more specific information as it relates to
this proposal.
Public En ity and Scholastic Division
CITY OF VERNON
IMPORTANT NOTICE REGARDING CLAIMS SERVICE
Each and every policy that we have placed for you contains specific instructions on how, when, and where to
report claims to the insurer. If you would like our western region claims service team to assist you with
reporting claims, however, please note the following important contact information:
Email contact: WR-Claims@ajg.com
Toll free numbers for assistance: Phone: 866-971-9462
Fax: 866-971-9464
Address for mailing: Arthur J. Gallagher & Co. Insurance Brokers
of California, Inc.
45 E. River Park Place West, Suite 408
Fresno, CA 93720
Please note that nothing in this notice amends any notice provisions contained in any of your insurance
policies. In the event you do need assistance with reporting a claim, please feel free to contact the service
team at the telephone numbers above.
Public Enaty and Sct oWdc Division
0
CITY OF VERNON
CLIENT AUTHORIZATION TO BIND COVERAGE
After careful consideration of Your proposal dated March 9, 2010, we accept your insurance program subject
to the following exceptions/changes:
POLICY OPTIONS:
}D- TIC JY2Y d sS
Select Coverage Options To Bind:
Pollution Legal Liability (Landfills/Transportations)
Select Optional Terrorism (TRIA) Coverage to Bind
I Reject All Recommended Coverage Considerations, Except I Would Like a
Quote For:
It is understood this proposal provides only a summary of the details; the policies will contain the actual
coverages.
We confirm the values, schedules, and other data contained in the proposal are from our records and
acknowledge it is our responsibility to see that they are maintained accurately.
Client Signature
Dated
P'arbllc Ewity and Schaludc Division
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CITY OF VERNON
NOTICE:
1. THE INSURANCE POLICY THAT YOU ARE APPLYING TO PURCHASE IS BEING
ISSUED BY AN INSURER THAT IS NOT LICENSED BY THE STATE OF CALIFORNIA.
THESE COMPANIES ARE CALLED "NONADMITTED" OR "SURPLUS LINE" INSURERS.
2. THE INSURER IS NOT SUBJECT TO THE FINANCIAL SOLVENCY REGULATION AND
ENFORCEMENT THAT APPLY TO CALIFORNIA LICENSED INSURERS.
3. THE INSURER DOES NOT PARTICIPATE IN ANY OF THE
INSURANCE GUARANTEE FUNDS CREATED BY CALIFORNIA
LAW. THEREFORE, THESE FUNDS WILL NOT PAY YOUR CLAIMS OR PROTECT YOUR
ASSETS IF THE INSURER BECOMES INSOLVENT AND IS UNABLE TO MAKE
PAYMENTS AS PROMISED.
4. CALIFORNIA MAINTAINS A LIST OF ELIGIBLE SURPLUS LINE
INSURERS APPROVED BY THE INSURANCE COMMISSIONER. ASK YOUR AGENT OR
BROKER IF THE INSURER IS ON THAT LIST, OR VIEW THAT LIST AT THE INTERNET
WEB SITE OF THE CALIFORNIA DEPARTMENT OF INSURANCE: www.insurance.ca.gov.
5. FOR ADDITIONAL INFORMATION ABOUT THE INSURER YOU
SHOULD ASK QUESTIONS OF YOUR INSURANCE AGENT,
BROKER, OR "SURPLUS LINE" BROKER OR CONTACT THE
CALIFORNIA DEPARTMENT OF INSURANCE, AT THE .
FOLLOWING TOLL -FREE TELEPHONE NUMBER:1-800-927-4357.
6. IF YOU, AS THE APPLICANT, REQUIRED THAT THE INSURANCE POLICY YOU HAVE
PURCHASED BE BOUND IMMEDIATELY, EITHER BECAUSE EXISTING COVERAGE
WAS GOING TO LAPSE WITHIN TWO BUSINESS DAYS OR BECAUSE YOU WERE
REQUIRED TO HAVE COVERAGE WITHIN TWO BUSINESS DAYS, AND YOU DID NOT
RECEIVE THIS DISCLOSURE FORM AND A REQUEST FOR YOUR SIGNATURE UNTIL
AFTER COVERAGE BECAME EFFECTIVE, YOU HAVE THE RIGHT TO CANCEL THIS
POLICY WITHIN FIVE DAYS OF RECEIVING THIS DISCLOSURE. IF YOU CANCEL
COVERAGE, THE PREMIUM WILL BE PRORATED AND ANY BROKER'S FEE CHARGED
FOR THIS INSURANCE WILL BE RETURNED TO YOU."
Date• _
Insured:
Pablic Enity and Scholastic Division
0
CITY OF VERNON
POLLUTION LEGAL LIABILITY- OPTION 1
March 23, 2010 to March 23, 2011
Great American E&S Insurance Co
Pollution Legal Liability
$1,000,000/Aggregate
On -Site and Off -Site
$1,000,000/Aggregate
Clean Up Costs
Contracting Services
$0
Pollution Liability
Non -Owned Disposal
$5,000,000/Aggregate
Sites
In -Bound and Out- $5,000,000/Aggregate
Bound Contingent
Transportation
$5,000,000
$25,000
4305 Santa Fe Avenue, Vernon, CA 90058
Claims -Made & Reported Form
None
Claim means a demand, notice or assertion of a legal right alleging liability
or responsibility on the part of the Insured, arising out of a Pollution
Condition, and shall include but not be limited to lawsuits, orders, petitions
or governmental or regulatory actions, filed against the Insured
Public Entiiy avid 5dw1wtic Division
• Pollution Legal Liability
• On -Site and Off -Site Clean Up Costs
• Contracting Services Pollution Liability
• Non -Owned Disposal Site
• In -Bound and Out -Bound Contingent Transportation Coverage
10
CITY OF VERNON
POLLUTION LEGAL LIABILITY — OPTION 1
Y
CQ a axiu sF.
I� d
Li e •
Asbestos
Contractual Liability
_ •
Criminal Fines, Penalties and Assessments
•
Prior Incidents Exclusion
•
Terrorism unlesspurchased)
vex Excluded
�Iui_emi 25% Minimum Earned
u vibe`s •
5 years currently valued Pollution loss runs.
yy •
Completed Surplus Lines Tax letter (broker responsibility).
' •
Copies of your last two (2) years of financial statements and/or
{ _
10K reports.
s _ Polo •
Signed/dated Terrorism Disclosure Notice.
ME •
Written confirmation of no additional notices violations or
-ram
potential claims which would be related to environmental insurance
g
�� _
M����_
coverage.
ex $19,268
(includes all Surplus Liens Taxes and Fees)
o1� $187
E - 200%
of the Full Policy Premium
I s rid 4� cis Yes
S h Sul of 9
s
Covered Location
Underground Storage Tank Underground Storage Tank
Capacity Contents
4305 Santa Fe Avenue, Vernon,
CA 90058
10,000
Diesel
4305 Santa Fe Avenue, Vernon,
CA 90058
8,000
Unleaded Gasoline
4305 Santa Fe Avenue, Vernon,
CA 90058
8,000
Unleaded Gasoline
Pk bUr Ewify and Scholastic Msion
CITY OF VERNON
POLLUTION LEGAL LIABILITY - OPTION 1
As a condition precedent to the coverage hereunder, in the event a CLAIM
is made against the INSURED for LOSS or CLEAN-UP COSTS, or a
POLLUTION CONDITION is first discovered that results in a LOSS or
CLEAN-UP COSTS, written or oral notice containing particulars sufficient
to identify the INSURED and also reasonably obtainable information with
respect to the time, place and circumstances thereof, and the names and
addresses of the injured and of available witnesses, shall be given by or for
the INSURED to the Company or any of its authorized agents as soon as
practicable. In the event of oral notice, the INSURED agrees to furnish a
written report as soon as practicable. The INSURED shall also forward to
the Company every demand, notice, summons, order or other process
received by the INSURED or the INSURED's representative as soon as
practicable.
In the event of the termination of this insurance before the expiration date
shown in the Declarations, the INSURED shall be entitled to a ninety (90)
day Automatic Extended Reporting Period for no additional premium. The
Automatic Extended Reporting Period shall apply as follows:
(1) A CLAIM first made against the INSURED during the POLICY
PERIOD and reported to the Company, in writing, during the ninety (90)
days immediately following the effective date of such termination will be
deemed to have been made on the last day of the POLICY PERIOD,
provided such CLAIM is otherwise covered by this Policy.
(2) A CLAIM first made against the INSURED and reported to the
Company, in writing, during the ninety (90) days immediately following the
effective date of such termination will be deemed to have been made on
the last day of the POLICY PERIOD, provided such CLAIM arises from a
POLLUTION CONDITION first discovered and reported to the
Company, in writing, prior to such termination, and is otherwise covered
by this Policy.
The Automatic Extended Reporting Period does not apply where: (1) the
Policy is terminated for fraud or non-payment of premium; or (2) the
INSURED has purchased other insurance to replace the insurance
provided under this Policy.
For the purposes of Section V.A. — Automatic Extended Reporting Period,
under this Policy:
(a) either cancellation or non -renewal shall be deemed to be a termination
of this insurance; and
(b) in the event of non -renewal, the expiration date shown in the
Declarations shallbe deemed the effective date of the termination.
Wblk Endfy 4wd Seholasfit Dirinsion
12
CITY OF VERNON
POLLUTION LEGAL LIABILITY - OPTION 1
The Optional Extended Reporting Period shall be effective for three (3)
consecutive three -hundred and sixty-five (365) day periods commencing
immediately following the effective date of cancellation or non -renewal. The
FIRST NAMED INSURED must elect to purchase this Optional Extended
Reporting Period in writing within thirty (30) days from the cancellation or
non -renewal of the Policy. The Automatic Extended Reporting Period of
ninety (90) days will be merged into this period and. is not in addition to this
period.
The Optional Extended Reporting Period shall only apply to CLAIMS first
made against the INSURED during the Optional Extended Reporting
Period, but only by reason of a POLLUTION CONDITION first
discovered and reported to the Company, in writing, during the POLICY
PERIOD, and is otherwise covered by this Policy.
The Optional Extended Reporting Period does not apply where: (1) the
Policy is terminated for fraud or non-payment of premium; or (2) the
INSURED has purchased other insurance to replace the insurance provided
under this Policy.
For the purposes of Section V.B. — Optional Extended Reporting Period
under this Policy:
(a) either cancellation or non -renewal shall be deemed to be a termination
of this insurance; and
(b) in the event of non -renewal, the expiration date shown in the
Declarations shall be deemed the effective date of the termination.
It is a condition precedent to the operation of the rights granted under
Section V.B. that payment of the appropriate premium shall be made not
later than thirty (30) days after expiration in the case of non -renewal or prior
to cancellation in the case of cancellation.
ftbllc Endfy and Sctwlastic Division
13
CITY OF VERNON
POLLUTION LEGAL LIABILITY - OPTION 2
March 23, 2010 to March 23, 2011
Chubb Custom Insurance Co
Bodily Injury, Property
Damage, Remediation
Costs, New Pollution
Incident
Bodily Injury, Property
Damage, Remediadon
Costs, Pre -Existing
Pollution Incident
Bodily Injury, Property
Damage, Remediation
Costs, Non Owned
Locations
Business Interruption
$5,000,000
$25,000
$ 5,000,000 /Aggregate
Not Included
$5,000,000/Aggregate
Not Included
4305 Santa Fe Avenue, Vernon, CA 90058
Claims -Made & Reported Form
None
Claim means a written demand or notice received by the Insured asserting
liability or responsibility on the part of the Insured for loss. Claim does not
include a potential claim that was reported under a prior policy as
described in Section II, Paragraph 2 of the policy form, but which has
become a claim during the policy period
Public Endty and SdKdwdE Division
• Pollution Legal Liability including Bodily Injury, Property Damage
and Remediation Costs
• Pollution Legal Liability including Bodily Injury, Property Damage
and Remediation Costs — Non Owned Locations
14
CITY OF VERNON
POLLUTION LEGAL LIABILITY — OPTION 2
• Business Interruption
• Material Change in Use
• Mold
• Identified Pollution Incidents Exclusion
• Terrorism (unless purchased)
Excluded
100% Minimum Earned
• Receipt and satisfactory review of an original, signed Chubb ESL
application and TRIA agreement (should the insured decline
terrorism coverage)
• Receipt and satisfactory review of environmental loss runs for the
past three years
• Receipt and satisfactory review of UST monitoring data
• An engineering survey must be performed
• Receipt of the insured's response to the recommendations of the
engineering survey requested by CES within sixty (60) days of
receipt of such recommendations.
$17,371 (includes all Surplus Liens Taxes and Fees)
$181
200% of the Full Policy Premium
Yes
Covered Location
Underground Storage Tank
Underground Storage Tank
Capacity
Contents
4305 Santa Fe Avenue, Vernon,
CA 90058
10,000
Diesel
4305 Santa Fe Avenue, Vernon,
CA 90058
8,000
Unleaded Gasoline
4305 Santa Fe Avenue, Vernon,
CA 90058
8,000
Unleaded Gasoline
Nblic Entity and Scholastic Division
15
CITY OF VERNON
POLLUTION LEGAL LIABILITY - OPTION 2
A. You must report a claim or discovery of a pollution incident to us as
soon as possible and in any event during the policy period, or extended
reporting period, if applicable. To the extent possible such notice should
include:
(1) how, when, and where the pollution incident took place;
(2) the names and addresses of any injured persons and witnesses;
(3) the nature and location of any injury or damage arising out of the
pollution incident; and
(4) the date you received the claim.
B. You and any other involved insured must:
(1) immediately send us copies of any demands, notices, summonses or any
other
process or legal papers received in connection with a claim; and
(2) authorize us to obtain records and other information
The named insured shall be entitled to a basic extended reporting period,
and may purchase a supplemental extended reporting period, following
Termination of Coverage as described below. A claim first made and
reported to us within the basic extended reporting period or supplemental
.extended reporting period, whichever is applicable, will be deemed to have
been made on the last day of the policy period. Neither the basic nor the
supplemental extended reporting period shall reinstate or increase any of
the Limits Of Insurance of this policy.
Provided the named insured has not purchased any other insurance to
replace this insurance,
the named insured shall have a sixty (60) day basic extended reporting
period.
The named insured shall be entitled to purchase a supplemental extended
reporting period of up to forty-eight (48) months for not more than 200%
of the full policy premium stated in Item 9 of the Declarations. Such
supplemental extended reporting period starts when the basic extended
reporting period ends. We will issue an endorsement providing a
supplemental extended reporting period provided that the named insured:
A. makes a written request for such endorsement which we receive within
thirty (30) days after Termination of Coverage; and
B. pays the additional premium when due. If that additional premium is paid
when due, the
supplemental extended reporting period may not be cancelled, provided that
all other
terms and conditions of the policy are met.
Pmblic Ewify and SdVAastic Division
16
CASN-D2 (Ed. 01 08) XS
GREAT � � r „ c.w
,!`]jyj �j
Administrative Offices
560 Walnut Street
INGURANCE GROUP
Cincinnati, Oh 45202
Tel: 1-513-369.5000 -
SURPLUS LINES NOTIFICATION
1. THE INSURANCE POLICY THAT YOU HAVE PURCHASED IS BEING ISSUED BY AN
INSURER THAT IS NOT LICENSED BY THE STATE OF CALIFORNIA. THESE COMPANIES
ARE CALLED "NONADMITTED" OR "SURPLUS LINE" INSURERS.
2. THE INSURER IS NOT SUBJECT TO THE FINANCIAL SOLVENCY REGULATION AND
ENFORCEMENT WHICH APPLIES TO CALIFORNIA LICENSED INSURERS.
3. THE INSURER DOES NOT PARTICIPATE IN ANY OF THE INSURANCE GUARANTEE FUNDS
CREATED BY CALIFORNIA LAW. THEREFORE, THESE FUNDS WILL NOT PAY YOUR
CLAIMS OR PROTECT YOUR ASSETS IF THE INSURER BECOMES INSOLVENT AND IS
UNABLE TO MAKE PAYMENTS AS PROMISED.
4. CALIFORNIA MAINTAINS A LIST OF ELIGIBLE SURPLUS LINE INSURERS APPROVED BY
THE INSURANCE COMMISSIONER. ASK YOUR AGENT OR BROKER IF THE INSURER IS
ON THAT LIST, OR VIEW THAT LIST AT THE WEB SITE OF THE CALIFORNIA
DEPARTMENT OF INSURANCE: WWW. INS URANCE.CA.GOV.
5. FOR ADDITIONAL INFORMATION ABOUT THE INSURER YOU SHOULD ASK QUESTIONS
OF YOUR INSURANCE AGENT, BROKER, OR "SURPLUS LINE" BROKER OR CONTACT
THE CALIFORNIA DEPARTMENT OF INSURANCE, AT THE FOLLOWING TOLL -FREE
TELEPHONE NUMBER: 1-800-927-4357.
6. IF YOU, AS THE APPLICANT, REQUIRED THAT THE INSURANCE POLICY YOU HAVE
PURCHASED BE BOUND IMMEDIATELY, EITHER BECAUSE EXISTING COVERAGE WAS
GOING TO LAPSE WITHIN TWO BUSINESS DAYS OR BECAUSE YOU WERE REQUIRED TO
HAVE COVERAGE WITHIN TWO BUSINESS DAYS, AND YOU DID NOT RECEIVE THIS
DISCLOSURE FORM AND A REQUEST FOR YOUR SIGNATURE UNTIL AFTER COVERAGE
BECAME EFFECTIVE, YOU HAVE THE RIGHT TO CANCEL THIS POLICY WITHIN FIVE
DAYS OF RECEIVING THIS DISCLOSURE. IF YOU CANCEL COVERAGE, THE PREMIUM
WILL BE PRORATED AND ANY BROKER FEE CHARGED FOR THIS INSURANCE WILL BE
RETURNED TO YOU.
(Page 1 of 1)
GREA1'n�,�,�i
I�IYAciUI!?!1;
Administrative Offices 30 12 (Ed. 01 09) XS
580 Walnut Street
INSURANCE GROUP
Cincinnati, Oh 45202
Tel: 1-513-369-5000
GENERAL SERVICE OF SUIT ENDORSEMENT
(Not Applicable in Delaware or Pennsylvania)
Pursuant to any statute of any state or district of the United States of America that makes provision therefor, the Insurer
hereby designates the commissioner, superintendent or director of insurance or other officer specified for that purpose in
the statute and his or her successors in office and duly authorized deputies in the state where this policy is issued, as the
Insurer's true and lawful attorney for service of legal process in any action, suit or proceeding brought in the state where
this policy is issued by or on behalf of an insured or beneficiary against the Insurer arising out of the insurance issued
under this policy. Any legal process received by such attorney for service of legal process shall be forwarded, except as
provided below, to the attention of: Eve Cutler Rosen, General Counsel, Great American Insurance Company, 580
Walnut Street, Cincinnati, Ohio 45202.
In California, any legal process received by the Insurer's statutory attorney for service of process shall be forwarded to
the attention of: Jere Keprios, The CT Corporation System, 818 West Seventh Street, Los Angeles, California 90017;
In the District of Columbia, any legal process received by the Insurer's statutory attorney for service of process shall be
forwarded to CT Corporation System, 1015
15th Street, NW, Suite 1000, Washington, DC 20005;
In Maine, the Insurer hereby designates CT Corporation System as its attorney for service of legal process in any action
relating to this policy, and directs that all such legal process be mailed to: CT Corporation System, One Portland Square,
Portland, Maine 04101,
In Oregon, the Insurer and the insured policyholder hereby agree to waive the provisions of Oregon Insurance Code
Section 735.490 requiring that service of legal process in any action relating to this policy shall be served on the insurance
agent who registered or delivered this policy, and instead agree that such service of legal process be mailed directly to
Eve Cutler Rosen, General Counsel, Great American insurance Company 580 Walnut Street, Cincinnati, Ohio 45202.
In Rhode Island, the Insurer hereby designates CT Corporation System as its attorney for service of legal process in any
action relating to this policy, and directs that all such legal process be mailed to: CT Corporation System, 10 Weybosset
Street, Providence, Rhode Island 02903.
The foregoing designations of attorney for service of legal process upon the Insurer shall not constitute a waiver of the
Insurer's rights to remove, remand, dismiss or transfer any suit or proceeding from any court, or to commence any suit or
other proceeding in any court of competent jurisdiction.
(Page 1 of 1)
Gli ATAMENCAN
Administrative Offices
580 Walnut Street
INSURANCE GROUP
Cincinnati, Oh 45202
Tel: 1-513-369-5000
SDM-526 (Ed. 09 06) XS
GREAT AMERICAN INSURANCE GROUP
PRIVACY NOTICE
AND
NOTICE OF INSURANCE INFORMATION PRACTICES
Great American Insurance Company
Great American Alliance Insurance Company
Great American Assurance Company
Great American Contemporary Insurance Company
Great American E & S Insurance Company
Great American Fidelity Insurance Company
Great American Insurance Company of New York
Great American Lloyd's Insurance Company
Great American Protection Insurance Company
Great American Security Insurance Company
Great American Spirit Insurance Company
Worldwide Casualty Insurance Company
American Empire Surplus Lines Insurance Company
American Empire Insurance Company
American Empire Underwriters, Inc.
Crop Managers Insurance Agency, Inc.
Dempsey & Siders Agency, Inc.
Great American Custom Insurance Services, Inc.
Great American Insurance Agency, Inc.
(Page 1 of 3)
SDM-526 (Ed. 09 06) XS
The members of Great American Insurance Group ("Great American," including those companies listed in this Notice)
respect your right to privacy.
We want you to know about our procedures for protecting your privacy and your rights and responsibilities regarding
nonpublic personal information (referred to as "data" in this notice) we receive about you. We want you to understand
how we gather data about you and how we protect it. The terms of this Notice apply to those individuals who inquire about
or obtain insurance from Great American primarily for personal, family or household purposes.
We will provide our customers with a copy of the most recent notice of our privacy policy at least annually and more often
if we make any changes affecting their rights under our privacy policy. This Notice applies to current and former
customers of Great American.
Great American does not share your data except as allowed by law. As a result, you do not need to take any action under
this Notice. If we change our practices in the future, we will advise you. If applicable, we will allow you to 'opt -out" of
certain sharing.
1. What kind of data is collected about you?
We get most of our data about you directly from you, such as your name, address, social security number, income
level and certain other financial data. We collect data that you provide during the insurance application process and
by other contact with you by mail and over the phone.
In some cases we may need additional data or may need to verify data you have given us. In those cases, we may
obtain data from outside sources at our own expense. For instance, we may collect data from consumer reporting
agencies such as credit worthiness and history or employment history. If you send a written request to the address
below, we will inform you of the name and address of any agency we have used to prepare a report on you so that
you can contact the agency.
Once you become our customer, we may collect data related to our experiences and transaction with you. This could
include data such as insurance policy coverage, premiums and payment history, and any claims you make under your
insurance policy. For example, we will retain data collected by a claims representative and police or fire reports.
We may also collect data about you from our affiliates regarding their transactions and experiences with you (such as
your payment or claims history). We do not currently share other credit -related data, except as allowed or required by
law.
Finally, we may collect data when you visit our website or when you email us. We do not sell this or any other data
about you to anyone.
2. What do we do with data about you?
Data about you will be kept in our records. We may disclose data to issue and service policies and settle claims.
Generally, we will not disclose data about you to any outside group without your prior authorization. However, we
may, as allowed by law, share data that we collect as set forth below.
We may disclose data to'your insurance agent.
We may disclose data to persons who represent you, including your attorney or trustee.
We may disclose data to adjusters, appraisers, auditors, investigators and attorneys.
We may disclose data to those who need the data to perform a business, professional or insurance function for
us.
We may disclose data to other insurance companies, agents or consumer reporting agencies, in connection with
any insurance application, policy or claim involving you.
(Page 2 of 3)
SDM-526 (Ed. 09 06) XS
We may disclose data to medical providers to inform you of a medical condition of which you may not be aware
and for claims payment purposes.
We may disclose data to others that conduct research, provided that no individual data may be identified in any
research study report.
We may disclose data, other than health data, to others that perform marketing services on our behalf.
We may disclose data to our affiliated companies to market products to you and for other purposes. The law does
not allow you to restrict this sharing.
We may disclose data to a court, state insurance department or other government agency pursuant to a
summons, court order, search warrant, subpoena, or as otherwise required by law or regulation.
We will only disclose your health data in the following ways:
as allowed or required by law;
with your written consent;
to underwrite or administer your policy, claim or account; or
in a manner as previously disclosed to you by us when we collect your health data.
When we disclose your data to third parties for certain purposes described above, we will require them to use your data
only for its intended purpose.
3. Who has access to your data?
The only people who have access to your data are those who need it to provide or support the provision of products
or services to you. We use a system of passwords and other appropriate physical, electronic and procedural
safeguards to protect against unauthorized access to your data. We have educated our employees about this Notice
and the importance of customer privacy.
4. How can you review recorded data about you?
You have the right to access and inspect most of the data that we collect about you. To access your data please send
a written request to the address below stating that you would like to access your data. Either you or your personal
representative must sign this request and provide a copy of your driver's license or other valid photo identification.
You also have the right to request that we correct any data that you believe is incorrect. To amend your data, please
send us a written request, at the address below, stating what data you believe needs correcting. Once again, either
you or your personal representative must sign this request. If you submit a request to amend your data, we will
investigate. If we agree, we will correct our records. Even if we do not correct the data, you have the right to file with
us a written statement of dispute, which we will include, in any future disclosure of the data.
5. How can you contact us?
If you have any questions about our privacy policy, please write to us at:
GREAT AMERICAN INSURANCE COMPANY
580 Walnut Street
Cincinnati, Ohio 45202
Attn: Compliance Office — Privacy
(Page 3, of 3)
Administrative offices - PEL 30 00 (Ed. 04 08)
GR AT WRICAN Cincinnati Streehio t
INSURANCE GROUP Tel: 1-513-369-5000
GREAT AMERICAN E & S INSURANCE COMPANY
PREMISES ENVIRONMENTAL LIABILITY INSURANCE DECLARATIONS
THIS IS A CLAIMS MADE AND REPORTED POLICY. READ IT CAREFULLY.
THIS POLICY REQUIRES THAT A CLAIM BE MADE AGAINST THE INSURED DURING THE POLICY PERIOD
AND REPORTED TO THE COMPANY DURING THE POLICY PERIOD OR, IF APPLICABLE, THE EXTENDED
REPORTING PERIOD.
SOME OF THE PROVISIONS CONTAINED IN THIS POLICY RESTRICT COVERAGE, SPECIFY WHAT IS AND
IS NOT COVERED AND DESIGNATE RIGHTS AND DUTIES. LEGAL EXPENSE IS SUBJECT TO AND WILL
ERODE THE LIMIT OF LIABILITY AND ANY APPLICABLE SELF -INSURED RETENTION.
Policy Number:
Renewal Of:
Customer Number:
PEL 8629840 00
NEW BUSINESS
0004317344
1. Named Insured: CITY OF VERNON
Street Address: 4305 SANTA FE AVENUE
City/State/Zip: , VERNON, CA 90058
2: Policy Period: From: 3/23/2009 To: 3/23/2010
(12:01 A.M. standard time at the mailing address shown in Item 1. above)
3. Coverages and Coverage Section Limits of Liability and Self -Insured Retention:
If no Limit of Liability or Self -Insured Retention amount appears for a Coverage section shown below, this Policy does
not apply for that Coverage section.
Coverage
Each POLLUTION
CONDITION Limit
Coverage Aggregate
Limit
Self -Insured
Retention
A.
$ 1,000,000
$ 1,000,000
$ 25,000
B.
$ 1,000,000
$ 1,000,000
$ 25,000
C.
$0 .
$0
$0
D.
$ 5,000,000
$ 5,000,000
$ 25,000
E.
$ 5,000,000
$ 5,000,000
$ 25,000
4. Policy Aggregate Limit of Liability: $ 5,000,000
(Page 1 of 2)
5. COVERED 4305 SANTA FE AVENUE, VERNON, CA 90058
LOCATION(s):
6. CONTRACTING All Contracting Services
SERVICES:
7. Retroactive Date: Not Applicable
8. Reverse Retroactive Date: Not Applicable
9. Premium:
-Premium for Certified Acts of Terrorism (coverage rejected):
-Premium for Taxes and Surcharges (included in above):
10. Minimum Earned Premium: 25%
11. Broker: ARTHUR J GALLAGHER & CO.
Street Address: 505 N BRAND BLVD STE 600
City/State/Zip: GLENDALE, CA 91203
$ 18,508.00
$ 0.00
$ 0.00
PEL 30 00 (Ed. 04 08)
12. Forms and Endorsements applicable to all Coverage parts and made part of this Policy at the time of issue are listed
on the attached Forms and Endorsements Schedule.
(Page 2 of 2)
;� &'z�� -� ��` � �` �` �s �':a� _�� g"�'•�x„,� 5� �3a h'�# rd zs:s} � ;s.� #,r- '�, 'a" :k `� ��. 2 �i
is
G»eATAMERICAIV
INSURANCE GROUP
ENVIRONMENTAL DIVISION
ENDORSEMENT # PEL (Manus 03110)
This endorsement, effective 1201 a.m., , forms a part of Policy No, issued to City of Vernon By
Great American E & S Insurance Company
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE; READ IT CAREFULLY.
CONTRACTING SERVICES DEFINITION AMENDATORY ENDORSEMENT
This endorsement modifies insurance provided under the following:
PREMISES ENVIRONMENTAL LIABILITY INSURANCE POLICY
The INSURED and the Company agree to the following Policy change(s):
Section ll. DEFINITIONS, Item G. CONTRACTING SERVICES is deleted in its entirety and
/'�V. vti.��.YVV IIIGGIIJ ully 4WlluclNully JGI'
Declarations and performed by or on behalf of the INSURED,
All other terms and conditions remain the same.
GREATAMRICAN.
INSURANCE6ROUP
ENVIRONMENTAL DIVISION
ENDORSEMENT # PEL (Manus 03/10)
This endorsement, effective 1201 a.m., , forms a part of Policy No. issued to City of Vernon By
Great American E & S Insurance Company
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
NON -OWNED DISPOSAL SITE(S) ("NODS") AMENDATORY ENDORSEMENT
This endorsement modifies insurance provided under the following:
PREMISES ENVIRONMENTAL LIABILITY INSURANCE POLICY
The INSURED and the Company agree to the following Policy change(s):
1. Section II. DEFINITIONS, Item Q. NON -OWNED DISPOSAL SITE(S) ("NODS") is deleted in
its entirety and replaced with the following:
Q. NON -OWNED DISPOSAL SITE(S) ("NODS") means:
1. each location endorsed onto this Policy in the NODS Schedule; or
2. a location(s) used for the treatment, storage or disposal of an INSURED's
waste material, but only if:
a. the waste material is generated by CONTRACTING SERVICES or at
a COVERED LOCATION(S); and
b. the NODS is not managed, operated, owned or leased by the
INSURED or any subsidiary or affiliate of the INSURED; and
c. the NODS is permitted and/or licensed by any Federal, State, Local
or Provincial authorities to accept such material as of the date of the
treatment, storage or disposal; and
d. the NODS is not listed on a ' proposed or final Federal National
Priorities List ("NPL") and any State or Provincial equivalent NPL,
Superfund or Hazardous Waste list prior to the treatment, storage or
disposal.
GR�AT;,vyIBRICAN.'
INSURANCE GNUP
ENVIRONMENTAL DIVISION
2. Section 1. INSURING AGREEMENTS, D. Coveraae D - NON -OWNED DISPOSAL SITE
applies to the following locations:
Schedule of NODS:
• Puente Hills Landfill, 2800 South Workman Mill Road, Whittier, CA 90601
• Sunshine Canyon Landfill, 14747 San Fernando Road, Sylmar, CA 91342
• Olinda Alpha Sanitary Landfill, 1942 N. Valencia Avenue, Brea, CA 92823
• Antelope Valley Public Landfill, 1200 West City Ranch Road, Palmdale, CA
93551
• Azusa Land Reclamation, 1211 West Gladstone Street, Azusa, CA 91702
• Chiquita Canyon Landfill, 29201 Henry Mayo Drive, Valencia, CA 91355
• Commerce Refuse -to -Energy, 5926 Sheila Street, Commerce, CA 90040
• El Sobrante Landfill,10910 Dawson Canyon Road, Corona, CA 92883
• Landcaster Landfill and Recycling, 600 E. Avenue #F, Landcaster, CA
93535
• Simi Valley Landfill and Recycling, 2801 Madera Road, Simi Valley, CA
93065
• Frank R. Bowerman Sanitary Landfill, 11002 Bee Canyon Access Road,
Irvine, CA 92618
All other terms and conditions remain the same.
•0004317344
s^' Administrative Offices PEL 30 01 (Ed. 04 08)
580
GPmAT� RICAN Cincinnati,, Ohioe45202
INSURANCE GROUP Tel: 1-513-369-5000
GREAT AMERICAN E & S INSURANCE COMPANY
PREMISES ENVIRONMENTAL LIABILITY INSURANCE POLICY
THIS IS A CLAIMS MADE AND REPORTED POLICY. READ IT CAREFULLY.
THIS POLICY REQUIRES THAT A CLAIM BE MADE AGAINST THE INSURED DURING THE POLICY PERIOD AND
REPORTED TO THE COMPANY DURING THE POLICY PERIOD OR, IF APPLICABLE, THE EXTENDED REPORTING
PERIOD.
SOME OF THE PROVISIONS CONTAINED IN THIS POLICY RESTRICT COVERAGE, SPECIFY WHAT IS AND IS
NOT COVERED AND DESIGNATE RIGHTS AND DUTIES. LEGAL EXPENSE IS SUBJECT TO AND WILL ERODE
THE LIMIT OF LIABILITY AND ANY APPLICABLE SELF -INSURED RETENTION.
In this Policy, "the Company" refers to the company providing this insurance. Some other words and phrases that appear
in capital letters have special meaning. Refer to SECTION II — DEFINITIONS.
In consideration of the payment of the Policy Premium and in reliance upon the statements contained in the Application
and any other supplemental materials and information submitted in connection with the Application, and subject to all the
terms, conditions, exclusions and limitations of this Policy, the Company agrees to provide insurance coverage to the
INSURED as described herein:
SECTION I. INSURING AGREEMENTS
EACH OF THE FOLLOWING COVERAGES IS IN EFFECT ONLY IF IT IS SCHEDULED IN THE DECLARATIONS.
EACH COVERAGE THAT IS IN EFFECT IS SUBJECT TO SECTION VI. LIMIT OF LIABILITY AND SELF -INSURED
RETENTION.
A. COVERAGE A - POLLUTION LEGAL LIABILITY
The Company will pay on behalf of the INSURED for LOSS and related LEGAL EXPENSE because of a POLLUTION
CONDITION on, at, under or migrating from the COVERED LOCATION(S), which the INSURED becomes legally
obligated to pay as a result of a CLAIM first made against the INSURED during the POLICY PERIOD, but only if the
INSURED reports the CLAIM to the Company, in writing, during the POLICY PERIOD or, if applicable, the
EXTENDED REPORTING PERIOD.
B. COVERAGE B — ON -SITE AND OFF -SITE CLEAN-UP COSTS
The Company will pay on behalf of the INSURED for CLEAN-UP COSTS and related LEGAL EXPENSE because of a
POLLUTION CONDITION on, at, under or migrating from the COVERED LOCATION(S):
1. which the INSURED becomes legally obligated to pay as a result of a CLAIM first made against the INSURED
during the POLICY PERIOD; or
2. if the POLLUTION CONDITION is first discovered by the INSURED during the POLICY PERIOD;
but only if the INSURED notifies the Company of the CLAIM or POLLUTION CONDITION, in writing, during the
POLICY PERIOD or, if applicable, the EXTENDED REPORTING PERIOD.
C. COVERAGE C — CONTRACTING SERVICES POLLUTION LIABILITY
The Company will pay on behalf of the INSURED for LOSS, CLEAN-UP COSTS, and related LEGAL EXPENSE
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which the INSURED becomes legally obligated to pay because of a POLLUTION CONDITION arising from
CONTRACTING SERVICES where, during the POLICY PERIOD:
1. a CLAIM for such LOSS and/or CLEAN-UP COSTS is first made against the INSURED; or
2. the POLLUTION CONDITION first begins and is first discovered by the INSURED;
but only if the INSURED notifies the Company of the CLAIM or POLLUTION CONDITION, in writing, during the
POLICY PERIOD, or, if applicable, the EXTENDED REPORTING PERIOD.
D. COVERAGE D - NON -OWNED DISPOSAL SITE
The Company will pay on behalf of the INSURED for LOSS, CLEAN-UP COSTS, and related LEGAL EXPENSE
because of a POLLUTION CONDITION on, at, under or migrating from a NON -OWNED DISPOSAL SITE, which the
INSURED becomes legally obligated to pay as a result of a CLAIM first made against the INSURED during the
POLICY PERIOD, but only if the INSURED reports the CLAIM to the Company, in writing, during the POLICY
PERIOD or, if applicable, the EXTENDED REPORTING PERIOD.
E. COVERAGE E — IN -BOUND AND OUT -BOUND CONTINGENT TRANSPORTATION COVERAGE
The Company will pay on behalf of the INSURED for LOSS, CLEAN-UP COSTS, and related LEGAL EXPENSE
because of a POLLUTION CONDITION arising from the INSURED's goods, products or waste during the course of
transportation by a CARRIER to or from:
1. a JOB SITE where CONTRACTING SERVICES are being performed; or
2. a COVERED LOCATION(S);
including any loading or unloading of such goods, products or waste, which the INSURED becomes legally obligated
to pay as a result of a CLAIM first made against the INSURED during the POLICY PERIOD, but only if the INSURED
reports the CLAIM to the Company, in writing, during the POLICY PERIOD or, if applicable,. the EXTENDED
REPORTING PERIOD.
SECTION II. DEFINITIONS
A. ADDITIONAL NAMED INSURED means any person, organization, or entity identified as an ADDITIONAL NAMED
INSURED in an .endorsement issued by the Company, but solely for their liability as a result of their ownership,
maintenance, use, operation, development or financial interest in a COVERED LOCATION(S).
B. AUTOMOBILE means a land motor vehicle, trailer, semi -trailer, mobile equipment, or off -road motor vehicle, including
any machinery or apparatus attached thereto.
C. BODILY INJURY means:
1. physical injury, sickness, disease, or building related illness sustained by any person, including death resulting
therefrom, and, solely with regard to this Item CA., any accompanying medical or environmental monitoring;
and/or
2. mental anguish, emotional distress, or shock;
caused by a POLLUTION CONDITION.
D. CARRIER means a person or entity, other than the INSURED or any subsidiary or affiliate company of the INSURED,
engaged by or on behalf of the INSURED to transport material by AUTOMOBILE, aircraft, watercraft or rolling stock,
but only if such person or entity is properly licensed to transport such material and in the business of transporting such
material.
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E. CLAIM means a demand, notice or assertion of a legal right alleging liability or responsibility on the part of the
INSURED, arising out of a POLLUTION CONDITION, and shall include but not be limited to lawsuits, orders, petitions
or governmental or regulatory actions, filed against the INSURED.
F. CLEAN-UP COSTS means reasonable and necessary expenses incurred to investigate, remove, dispose of, abate,
contain, treat or neutralize a POLLUTION CONDITION, including any monitoring and testing costs:
1. to the extent required by Federal, State, Local or Provincial Laws, including but not limited to statutes, rules,
ordinances, guidance documents, regulations and all amendments thereto, including state voluntary cleanup or
risk based corrective action guidance, governing the liability or responsibilities of the INSURED; or
2. in the absence of items in 1. above, to the extent recommended by a ENVIRONMENTAL PROFESSIONAL;
with respect to a POLLUTION CONDITION.
CLEAN-UP COSTS includes REPLACEMENT COSTS and also includes any associated punitive, exemplary or
multiplied damages, where insurable by law.
G. CONTRACTING SERVICES means any contracting services listed in the Declarations and performed by the
INSURED at a JOB SITE.
H. COVERED LOCATION(S) means any location(s) stated in the Declarations or any location(s) scheduled as such onto
this Policy by an endorsement issued by the Company. COVERED LOCATION(S) does not include a JOB SITE.
I. ENVIRONMENTAL PROFESSIONAL means an individual designated by the Company who is duly certified or
licensed in a recognized field of environmental science as required by a state board, a professional association, or
both. The Company shall consult with the INSURED in conjunction with the selection of the ENVIRONMENTAL
PROFESSIONAL. The Company may require that such professional meet certain minimum qualifications and
maintain errors and omissions insurance.
J. EXTENDED REPORTING PERIOD means the Automatic Extended Reporting Period or, if applicable, the Optional
Extended Reporting Period described in Section V. of this Policy.
K. FIRST NAMED INSURED means the person or entity stated in the Declarations.
L. INSURED means the FIRST NAMED INSURED, any ADDITIONAL NAMED INSURED added to this Policy by an
endorsement issued by the Company, and any present or former director, officer, partner, member, employee, leased
or temporary worker thereof, while acting within the scope of his/her duties as such.
M. LEGAL EXPENSE means attorneys' fees and other charges and expenses incurred in the investigation, adjustment,
defense, or settlement of any CLAIM for LOSS or CLEAN-UP COSTS, or in connection with the payment of any
CLEAN-UP COSTS. LEGAL EXPENSE includes the fees and expenses of consultants, expert witnesses,
accountants, court reporters, and other vendors, for goods or services in connection with such investigation,
adjustment, defense, or settlement, whether incurred by the INSURED, defense counsel, or the Company.
LEGAL EXPENSE does not include salary charges of regular employees or officials of the Company, fees and
expenses of supervisory counsel retained by the Company, or the time and expense incurred by the INSURED in
assisting in the investigation or resolution of a CLAIM or in connection with CLEAN-UP COSTS, including but not
limited to the costs of the INSURED's in-house counsel.
N. LOSS means a monetary judgment, award or settlement of:
1. compensatory damages, or
2. punitive, exemplary or multiplied damages, civil fines, penalties and assessments, where insurable by law,
because of BODILY INJURY and/or PROPERTY DAMAGE.
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O. JOB SITE means a location at which CONTRACTING SERVICES are performed. However, JOB SITE does not
include any of the following:
1. a COVERED LOCATION(S); or
2. any location managed, operated, owned or leased by an INSURED or any subsidiary or affiliate of an INSURED.
P. MOLD MATTER means mold, mildew or any type or form of fungus; including any mycotoxins, spores, or byproducts
produced or released by fungi.
Q. NON -OWNED DISPOSAL SITE(S) ("NODS") means a location(s) used for the treatment, storage or disposal of an
INSURED'S waste material, but only if:
1. the waste material is generated by CONTRACTING SERVICES or at a COVERED LOCATION(S); and
2. the NODS is not managed, operated, owned or leased by the INSURED or any subsidiary or affiliate of the
INSURED; and
3. the NODS is permitted and/or licensed by any Federal, State, Local or Provincial authorities to accept such
material as of the date of the treatment, storage or disposal; and
4. the NODS is not listed on a proposed or final Federal National Priorities List ("NPL") and any State or Provincial
equivalent NPL, Superfund or Hazardous Waste list prior to the treatment, storage or disposal.
R. POLICY PERIOD means the period stated in the Declarations. However, if this Policy is cancelled, by either the
FIRST NAMED INSURED or the Company, the policy period ends at the effective date and time of the cancellation.
S. POLLUTANTS mean any solid, liquid, gaseous or thermal pollutant, irritant or contaminant, including but not limited to
smoke, vapors, odors, soot, fumes, acids, alkalis, toxic chemicals, hazardous substances, petroleum hydrocarbons,
waste materials, including medical, infectious and pathological wastes, legionella, electromagnetic fields, MOLD
MATTER and low-level radioactive waste and material.
T. POLLUTION CONDITION means any one or more of the following:
1. the discharge, dispersal, release, seepage, migration, or escape of POLLUTANTS into or upon land or structures
thereupon, the atmosphere, or any watercourse or body of water including groundwater;
2. the illicit abandonment of POLLUTANTS at a COVERED LOCATION(S) provided that such abandonment was
committed by a person(s) or entity(ies) other than an INSURED and without any knowledge by a RESPONSIBLE
PERSON;
3. the existence of MOLD MATTER on, at, or within buildings or structures.
U. PROPERTY DAMAGE means:
1. physical injury to or destruction of tangible property of any person or organization other than an INSURED
including the resulting loss of use of such property, and including the personal property of such parties; or
2. loss of use of such property that has not been physically injured or destroyed; or
3. diminution in the value of such property; or
4. natural resource damage which means the physical injury to or destruction of, as well as the assessment of such
injury or destruction, including the resulting loss of value of land, fish, wildlife, biota, air, water, groundwater,
drinking water supplies, and other such resources belonging to, managed by, held in trust by, appertaining to, or
otherwise controlled by the United States (including the resources of the fishery conservation zone established by
the Magnuson -Stevens Fishery Conservation and Management Act(16 U.S.C. 1801 et. seq.)), any State, Local or
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PEL 30 01 (Ed. 04 08)
Provincial government, any foreign government, any Native American tribe, or, if such resources are subject to a
trust restriction or alienation, any member of a Native American Tribe.
caused by a POLLUTION CONDITION. However, PROPERTY DAMAGE does not include CLEAN-UP COSTS.
V. REPLACEMENT COSTS means reasonable and necessary costs incurred by the INSURED with the Company's
written consent, to repair, restore or replace damaged real or personal property in order to restore the property to the
condition it was in prior to being damaged in the course of incurring CLEAN-UP COSTS. REPLACEMENT COSTS
shall not exceed the actual cash value of such real or personal property prior to incurring the CLEAN-UP COSTS. For
the purposes of this definition, actual cash value means replacement cost reduced by physical depreciation and
obsolescence.
W. RESPONSIBLE PERSON means any officer, director or partner of the INSURED; the manager or supervisor of the
INSURED responsible for environmental or health and safety affairs, control or compliance; or any manager of a
COVERED LOCATION(S).
X. UNDERGROUND STORAGE TANK means any container or vessel, including the associated piping connected
thereto, which is ten percent (10%) or more beneath the surface of the ground.
SECTION III. TERRITORY
This Policy applies only to CLAIMS first made or brought in the United States, its territories or possessions, Puerto Rico or
Canada, but only if the INSURED'S responsibility to pay for LOSS is determined in:
A. a proceeding on the merits conducted in the United States, its territories or possessions, Puerto Rico or Canada, or
B. a settlement agreed to by the Company.
SECTION IV. EXCLUSIONS
This Insurance does not apply to any LOSS, CLEAN-UP COSTS, LEGAL EXPENSE or other coverage afforded
under this Policy or any endorsement issued by the Company:
1. Asbestos
based upon or arising out of any asbestos or asbestos containing material, in, on, or applied to any building or other
structure. This exclusion does not apply to asbestos, or asbestos containing materials, in soil or in any watercourse or
body of water including groundwater.
2. Communicable Diseases
based upon or arising out of any exposure to infected humans or animals, or contact with bodily fluids of infected
humans or animals.
3. Contractual Liability
based upon or arising from the INSURED's assumption, under any contract or agreement, of the liability of another.
This exclusion does not apply to liability the INSURED would have had in the absence of the contract or
agreement.
4. Criminal Fines, Penalties and Assessments
based upon or arising out of any criminal fine, criminal penalty, or criminal assessment.
5. Employer's Liability/Workers' Compensation
based upon or arising out of any BODILY INJURY to an INSURED, or an employee of its parent, subsidiary or affiliate
arising out of and in the course of employment by the INSURED or its parent or subsidiary or affiliate including
BODILY INJURY or pecuniary loss to the spouse, child, parent, brother or sister of such injured employee. This
exclusion applies whether the INSURED may be liable as an employer or in any other capacity and to any obligation
to share damages with or repay another who must pay damages as a result of the BODILY INJURY.
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6. Faulty Workmanship/Own Work
based upon or arising out of the costs to repair or replace faulty workmanship, construction, fabrication, installation,
assembly or remediation if such faulty workmanship, construction, fabrication, installation, assembly or remediation
was performed in whole or in part by an INSURED.
7. Hostile Acts
based upon or arising out of any consequence, whether direct or indirect, of declared or undeclared war, invasion, act
of foreign enemy, hostilities, civil war, rebellion, revolution, insurrection, or military or usurped power, or in defending
against any one or more of those.
8. Insured vs. Insured
based upon or arising out of any CLAIM by one INSURED against any other INSURED. This exclusion does not apply
to a CLAIM that arises out of an indemnification given by one INSURED to another INSURED as specified in a
contract that was submitted and approved by the Company and added to this Policy by endorsement.
9. Insured's Property/Bailee Liability
with respect to property damage to property owned, leased or operated by, or in the care, custody or control of, the
INSURED, even if such property damage is incurred to avoid or mitigate LOSS or CLEAN-UP COSTS which may be
covered under this Policy. This exclusion does not apply to REPLACEMENT COSTS.
10. Intentional Acts
based upon or arising out of a POLLUTION CONDITION that results from any RESPONSIBLE PERSON's intentional
disregard of, or deliberate, willful, or dishonest non-compliance with, any statute, regulation, ordinance, administrative
complaint, notice letter, or instruction by or on behalf of any governmental agency or representative.
11. Known Condition(s)
based on or arising out of any POLLUTION CONDITION that was known by or reported to any RESPONSIBLE
PERSON, but was not expressly reported in writing to the Company, before:
(a) the beginning of the POLICY PERIOD (as respects a POLLUTION CONDITION at any COVERED
LOCATION(S), or arising out of any CONTRACTING SERVICES, shown in the Declarations at the beginning of
the POLICY PERIOD), or
(b) the Company issues an endorsement to add:
I. the COVERED LOCATION(S) at which the POLLUTION CONDITION exists, or
ii. the CONTRACTING SERVICES from which the POLLUTION CONDITION arises,
to the Policy (as respects a POLLUTION CONDITION at any COVERED LOCATION(S), or arising out of any
CONTRACTING SERVICES, that was not shown in the Declarations at the beginning of the POLICY PERIOD).
Any such expressly reported POLLUTION CONDITION which is not otherwise excluded under this Policy by
endorsement is deemed to be first discovered on the date the COVERED LOCATION(S) or CONTRACTING
SERVICES, as applicable, were added to this Policy.
12. Lead -Based Paint
based upon or arising out of lead -based paint in, on, or applied to, any building or other structure. This exclusion does
not apply to lead -based paint in soil or in any watercourse or body of water including groundwater.
13. Material Change in Use
based upon or arising out of a change in the use of, or operations at, a COVERED LOCATION(S) from the use or
operations as of the date the COVERED LOCATION(S) became insured by this Policy, if that change materially
increases the likelihood or severity of a POLLUTION CONDITION or CLAIM.
14. Natural Occurring Material(s)
based upon or arising out of the existence, required removal, or abatement, of naturally occurring material(s). This
exclusion does not apply where such substances are present at a JOB SITE due to the performance of
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PEL 30 01 (Ed. 04 08)
CONTRACTING SERVICES or at a COVERED LOCATION(S) only because of human activities or processes. This
exclusion also does not apply to MOLD MATTER.
15. New Pollution Conditions at Divested Property
based upon or arising out of a POLLUTION CONDITION on, at, under or migrating from a COVERED LOCATION(S),
if the discharge, dispersal, release, seepage, migration or escape of those POLLUTANTS begins after such
COVERED LOCATION(S) is sold, given away, or abandoned by the INSURED, or condemned.
16. Products Liability
based upon or arising out of goods or products manufactured, sold, handled, distributed, altered or repaired by the
INSURED or by others trading under the INSURED's name, including any container thereof, any failure to warn, or
any reliance upon a representation or warranty made at any time with respect thereto, but only if the POLLUTION
CONDITION occurs away from the COVERED LOCATION(S) and after physical possession of such goods or
products has been relinquished to others.
17. Retroactive Date
based upon or arising out of a POLLUTION CONDITION that first commenced prior to the retroactive date stated in
the Declarations, including any further dispersal, migration or movement of that POLLUTION CONDITION on or after
that date.
18. Reverse Retroactive Date
based upon or arising out of a POLLUTION CONDITION that first commenced subsequent to the reverse retroactive
date stated in the Declarations.
19. Underground Storage Tank(s)
based upon or arising out of the existence of any UNDERGROUND STORAGE TANK(s). This exclusion does not
apply to UNDERGROUND STORAGE TANK(s):
(a) either closed, abandoned in place or removed, in accordance with all applicable federal, state, or provincial
regulations, prior to the inception date of this Policy; or
(b) endorsed to this Policy in the Underground Storage Tank(s) and Associated Piping Schedule, if any; or
(c) the existence of which is unknown by all RESPONSIBLE PERSONS as of the inception date of this Policy.
20. Vehicles
based upon or arising out of the ownership, maintenance, use, operation, loading or unloading of any AUTOMOBILE,
aircraft, watercraft, rolling stock or any other form of transportation, including any cargo carried thereby, beyond the
legal boundaries' of a JOB SITE where CONTRACTING SERVICES are being performed -or a COVERED
LOCATION(S). This exclusion does not apply to Coverage E — In -Bound and Out -Bound Contingent Transportation
Coverage.
SECTION V. EXTENDED REPORTING PERIOD
A. Automatic Extended Reporting Period
In the event of the termination of this insurance before the expiration date shown in the Declarations, the INSURED
shall be entitled to a ninety (90) day Automatic Extended Reporting Period for no additional premium. The Automatic
Extended Reporting Period shall apply as follows:
(1) A CLAIM first made against the INSURED during the POLICY PERIOD and reported to the Company, in writing,
during the ninety (90) days immediately following the effective date of such termination will be deemed to have
been made on the last day of the POLICY PERIOD, provided such CLAIM is otherwise covered by this Policy.
(2) A CLAIM first made against the INSURED and reported to the Company, in writing, during the ninety (90) days
immediately following the effective date of such termination will be deemed to have been made on the last day of
the POLICY PERIOD, provided such CLAIM arises from a POLLUTION CONDITION first discovered and
reported to the Company, in writing, prior to such termination, and is otherwise covered by this Policy.
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PEL 30 01 (Ed 04 08)
The Automatic Extended Reporting Period does not apply where: (1) the Policy is terminated for fraud or non-payment
of premium; or (2) the INSURED has purchased other insurance to replace the insurance provided under this Policy.
For the purposes of Section V.A. — Automatic Extended Reporting Period, under this Policy:
(a) either cancellation or non -renewal shall be deemed to be a termination of this insurance; and
(b) in the event of non -renewal, the expiration date shown in the Declarations shall be deemed the effective date of
the termination.
B. Optional Extended Reporting Period
The FIRST NAMED INSURED shall be entitled to purchase an Optional Extended Reporting Period upon cancellation
or non -renewal of the Policy, subject to the following terms and conditions:
The FIRST NAMED INSURED shall be entitled to purchase an Optional Extended Reporting Period upon payment of
an additional premium of not more than 200% of the full Policy Premium.
The Optional Extended Reporting Period shall be effective for three (3) consecutive three -hundred and sixty-five (365)
day periods commencing immediately following the effective date of cancellation or non -renewal. The FIRST NAMED
INSURED must elect to purchase this Optional Extended Reporting Period in writing within thirty (30) days from the
cancellation or non -renewal of the Policy. The Automatic Extended Reporting Period of ninety (90) days will be
merged into this period and is not in addition to this period.
The Optional Extended Reporting Period shall only apply to CLAIMS first made against the INSURED during the
Optional Extended Reporting Period, but only by reason of a POLLUTION CONDITION first discovered and reported
to the Company, in writing, during the POLICY PERIOD, and is otherwise covered by this Policy.
The Optional Extended Reporting Period does not apply where: (1) the Policy is terminated for fraud or non-payment
of premium; or (2) the INSURED has purchased other insurance to replace the insurance provided under this Policy.
For the purposes of Section V.B. — Optional Extended Reporting Period under this Policy:
(a) either cancellation or non -renewal shall be deemed to be a termination of this insurance; and
(b) in the event of non -renewal, the expiration date shown in the Declarations shall be deemed the effective date of
the termination.
It is a condition precedent to the operation of the rights granted under Section V.B. that payment of the appropriate
premium shall be made not later than thirty (30) days after expiration in the case of non -renewal or prior to
cancellation in the case of cancellation.
For purposes of Section V., the quotation of different Limits of Liability, Self -Insured Retentions, terms or conditions by the
Company shall not be construed as termination or non -renewal of this Policy.
SECTION VI. LIMIT OF LIABILITY AND SELF -INSURED RETENTION
A. The Limits of Liability and Self -Insured Retention shown in the Declarations and the rules below fix the most the
Company will pay regardless of the number of INSUREDS, COVERED LOCATION(S), CONTRACTING SERVICES,
POLLUTION CONDITIONS, CLAIMS made, or persons or organizations making CLAIMS.
B. For purposes of this Policy, the same or related POLLUTION CONDITIONS at any one JOB SITE where
CONTRACTING SERVICES are performed, or at any one COVERED LOCATION, shall be deemed a single
POLLUTION CONDITION.
C. This Policy will pay covered LOSS, CLEAN-UP COSTS, LEGAL EXPENSE or any other coverages afforded under this
Policy or any endorsements attached hereto only (1) in excess of the applicable Self -Insured Retention Amount stated
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PEL 30 01 (Ed. 04 08)
in the Declarations and (2) subject to the applicable Limit of Liability stated in the Declarations and the other terms
and conditions of this Policy.
D. The Self -Insured Retention Amount is to be borne by the INSURED and is not to be insured unless the Company has
expressed its prior consent in writing to the FIRST NAMED INSURED. If the same or related POLLUTION
CONDITION results in coverage under more than one coverage section for which a limit is stated in the Declarations
or under any other coverage afforded under this Policy or any endorsements attached hereto, only the single highest
Self -Insured Retention amongst such applicable coverages shall apply.
E. Each POLLUTION CONDITION Limit — Subject to Items F. and G. below, the most the Company will pay for the sum
of all LOSS, CLEAN-UP COSTS, and LEGAL EXPENSE under each coverage section stated in the Declarations, or
under any other coverages afforded under this Policy or any endorsements attached thereto, arising out of the same
or related POLLUTION CONDITION is the Each POLLUTION CONDITION Limit applicable to that particular
coverage.
F. Coverage Section Aggregate Limit — Subject to Item G. below, the Company's total liability for the sum of all LOSS,
CLEAN-UP COSTS, and LEGAL EXPENSE under each coverage section stated in the Declarations, or under any
other coverages afforded under this Policy or any endorsements attached thereto, during the POLICY PERIOD or, if
applicable, the EXTENDED REPORTING PERIOD, shall not exceed the Coverage Aggregate Limit of Liability
applicable to that particular coverage.
G. Policy Aggregate Limit - The Company's total liability for the sum of all LOSS, CLEAN-UP COSTS, LEGAL EXPENSE
and any other coverages afforded under this Policy or any endorsements attached thereto, shall not exceed the Policy
Aggregate Limit of Liability as stated in the Declarations.
H. Any LOSS, CLEAN-UP COSTS, LEGAL EXPENSE or any other coverages afforded under this Policy or any
endorsements attached hereto, incurred and reported to the Company, in writing, over more than one POLICY
PERIOD, and resulting from the same or related POLLUTION CONDITION, shall be considered a single POLLUTION
CONDITION. The LOSS, CLEAN-UP COSTS, LEGAL EXPENSE or any other coverages afforded under this Policy or
any endorsements attached thereto will be subject to the same Limit of Liability and Self -Insured Retention Amount(s)
in effect at the time the POLLUTION CONDITION was first reported to the Company, in writing, during the POLICY
PERIOD or, if applicable, the EXTENDED REPORTING PERIOD.
SECTION VII. REPORTING, DEFENSE, SETTLEMENT AND COOPERATION
A. As a condition precedent to the coverage hereunder, in the event a CLAIM is made against the INSURED for LOSS or
CLEAN-UP COSTS, or a POLLUTION CONDITION is first discovered that results in a LOSS or CLEAN-UP COSTS,
written or oral notice containing particulars sufficient to identify the INSURED and also reasonably obtainable
information with respect to the time, place and circumstances thereof, and the names and addresses of the injured
and of available witnesses, shall be given by or for the INSURED to the Company or any of its authorized agents as
soon as practicable. In the event of oral notice, the INSURED agrees to furnish a written report as soon as
practicable. The INSURED shall also forward to the Company every demand, notice, summons, order or other
process received by the INSURED or the INSURED's representative as soon as practicable.
B. No costs, charges or expenses shall be incurred, nor payments made, obligations assumed or remediation
commenced, without the Company's consent which shall not be unreasonably withheld. This provision does not apply
to costs incurred by the INSURED on an emergency basis, where delay on the part of the INSURED would cause
injury to persons or damage to property or increase significantly the cost of responding to a POLLUTION
CONDITION. The INSURED shall notify the Company of all such expenses immediately after the emergency ends.
C. The Company shall have the right to. designate legal counsel for the investigation, adjustment and defense of
CLAIMS. The Company shall consult with the INSURED in conjunction with the selection of counsel. The Company
shall have the right and duty to defend an INSURED against any CLAIM for LOSS or for CLEAN-UP COSTS,
however, the Company will have no duty to defend the INSURED for LOSS or for CLEAN-UP COSTS to which this
Policy does not apply.
D. Once the applicable Limit of Liability has been exhausted, the Company shall not be obligated to defend or continue
to defend any CLAIM or pay for any LOSS, CLEAN-UP COSTS or other coverage afforded under this Policy.
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PEL 30 01 (Ed. 04 08)
E. The Company may, where allowable by law, appoint one counsel to defend all of the INSUREDs under this Policy on
a joint defense basis.
F. In the event that the INSURED is entitled by law to select independent counsel (Cumis Counsel) to defend the
INSURED at the Company's expense, the attorney's fees and all other litigation expenses incurred by the Company
shall be limited to the same rates that the Company would pay to counsel selected by the Company to defend a
similar CLAIM in the location where the CLAIM arose or is being defended. The Company may require that such
counsel meet certain minimum qualifications and maintain errors and omissions insurance. The INSURED agrees that
such counsel will timely respond to the Company's request for information.
G. The INSURED shall not admit liability or settle any CLAIM without the Company's consent. If the Company
recommends a monetary settlement of a CLAIM acceptable to a claimant:
1. for an amount within the Self -Insured Retention Amount and the INSURED refuses such settlement, the Company
shall not be liable for any LOSS, CLEAN-UP COSTS, LEGAL EXPENSE, or any other coverages afforded under
this Policy or any endorsements attached thereto in excess of the Self -Insured Retention Amount; or
2, for a total amount in excess of the Self -Insured Retention and within the applicable Limits of Liability and the
INSURED refuses such settlement, the Company's liability for LOSS, CLEAN-UP COSTS, LEGAL EXPENSE, or
any other coverages afforded under this Policy or any endorsements attached hereto, shall be limited to that
portion of the sum of (a) the recommended settlement and (b) the costs, charges and expenses already incurred
as of the date of the INSURED's refusal, which exceeds the Self -Insured Retention Amount and is within the Limit
of Liability.
H. All INSUREDs shall cooperate with the Company and upon the Company's request shall submit to examination by a
representative of the Company, under oath if required, and shall attend hearings, depositions and trials and assist in
effecting settlement, securing and giving evidence, obtaining the attendance of witnesses and in the conduct of suits,
as well as in the investigation and/or defense, all without charge to the Company. The INSURED shall further
cooperate with the Company and do whatever is necessary to secure and enforce any rights of indemnity, contribution
or apportionment which the INSURED may have.
SECTION VIII. TRANSFER OF LEGAL DEFENSE DUTIES
A. If the Company believes that any of the applicable Limits of Liability stated in the Declarations has been or soon will
be exhausted in defending a CLAIM, or that the Company has paid out or will soon pay out the Policy Aggregate Limit
of Liability stated in the Declarations, the Company will so notify the FIRST NAMED INSURED in writing as soon as
possible. The Company will advise that its duty to defend CLAIMS seeking damages subject to those limits has
terminated, subject to payment of the limits, and that it will no longer handle the defense of any CLAIM for which
notice is given after the date it sends out such notice. The Company will take prompt and appropriate steps to transfer
control of any existing defense prior to exhaustion of the limits to the FIRST NAMED INSURED. The FIRST NAMED
INSURED agrees to reimburse the Company for any costs which the Company bears in connection with the transfer
of the defense.
B. The Company will take appropriate steps necessary to defend the CLAIM during the transfer of the defense and avoid
any unfavorable legal action provided that the INSURED cooperates in"the transfer of the duties of the defense.
C. The Company's failure to comply with any of the provisions of Section VIII. shall in no way obligate the Company to
defend or continue to defend any CLAIM, or to pay any LOSS, CLEAN-UP COSTS or other sum covered under this
Policy, after exhaustion of an applicable Limit of Liability.
SECTION IX. CONDITIONS
A. ACTION AGAINST COMPANY - No -action brought by an organization or entity, other than an INSURED, shall lie
against the Company unless, as a condition precedent thereto, the INSURED has fully complied with all of the terms
of this Policy and, the amount of the INSURED's obligation to pay shall have been finally determined either by
judgment against the INSURED after actual trial or by written agreement of the INSURED, the claimant and the
Company.
(Page 10 of 12)
PEL 30 01 (Ed. 04 08)
Any person or organization or the legal representative thereof who has secured such judgment or written agreement
shall thereafter be entitled to recover under this Policy to the extent of the insurance afforded by this Policy. No
person or organization shall have any right under this Policy to join the Company as a party to any action against the
INSURED to determine the INSURED's liability, nor shall the Company be impleaded by the INSURED or his legal
representative.
B. ASSIGNMENT - This Policy shall be void as to the assignee or transferee, if assigned or transferred without written
consent of the Company. This Policy can be assigned automatically without the consent of the Company to any first
mortgagee of a COVERED LOCATION(S). The FIRST NAMED INSURED shall notify the Company of such
assignment as soon as possible.
C. BANKRUPTCY - Bankruptcy or insolvency of the INSURED or of the INSURED's estate shall not relieve the
Company of any of its obligations hereunder.
D. CANCELLATION This Policy may be cancelled by the . FIRST NAMED INSURED by surrender thereof to the
Company or any of its authorized agents or by mailing to the Company written notice stating when thereafter the
cancellation shall be effective. In the event of cancellation by the FIRST NAMED INSURED, the return premium shall
be computed in accordance with the customary short rate table and procedure -after applying the minimum earned
premium percentage stated in the Declarations. If a CLAIM is made, a POLLUTION CONDITION is discovered or
coverage is otherwise afforded under this Policy, then the premium shall be considered fully earned by the Company
and the INSURED is not entitled to a return premium upon cancellation.
This Policy may be cancelled by the Company by mailing to the FIRST NAMED INSURED at the address shown in
the Declarations, written notice stating when not less than ninety (90) days [ten (10) days for non-payment of
premium] thereafter such cancellation shall be effective. The mailing of notice as aforesaid shall be sufficient proof of
notice. The time of surrender or the effective date and hour of cancellation stated in the notice shall become the end
of the POLICY PERIOD. If the Company cancels, earned premium shall be computed pro rasa. Premium adjustment
may be made either at the time cancellation is affected or as soon as practicable after cancellation becomes effective,
but payment or tender of unearned premium is not a condition of cancellation.
This Policy may be cancelled by the Company for the following reasons: (1) Non-payment of premium, or (2) Fraud or
material misrepresentation on the part of the INSURED, such as can be proven in a court of law.
E. CHANGES - Notice to any agent or knowledge possessed by any agent or by any other person shall not effect a
waiver or a change in any part of this Policy or estop the Company from asserting any right under the terms of this
Policy; nor can the terms of this Policy be waived or changed, except by an endorsement issued by the Company to
form a part of this Policy.
F. CHOICE OF LAW - All matters arising hereunder, including questions related to the validity, interpretation,
performance and enforcement of this Policy, shall be determined in accordance with the law and practice of the State
of New York (not including New York's choice of law rules).
G. CONSENT - Where the consent of the Company or the INSURED is required under this Policy, such consent shall not
be unreasonably withheld, delayed, conditioned or denied.
H. DECLARATIONS AND REPRESENTATIONS - By acceptance of this Policy, the INSURED agrees that the
statements contained in the Declarations, the application and any other supplemental materials and information
submitted in connection with the application or any amendments to the Policy during the POLICY PERIOD are the
INSURED's declarations and representations, that they shall be deemed material, that this Policy is issued in reliance
upon the truth of such declarations and representations and that this Policy embodies all agreements existing
between the INSURED and the Company or any of its agents relating to this insurance.
I. HEADINGS - The descriptions in the headings of this Policy are solely for convenience and form no part of the Policy
terms and conditions.
J. INSPECTION AND AUDIT - The Company shall be permitted but not obligated to inspect and monitor on a continuing
basis the INSURED's property or operations and any JOB SITE and COVERED LOCATION(S), at any time. Neither
the Company's right to make inspections and monitor, nor the actual undertaking thereof, nor any report thereon, shall
(Page 11 of 12)
PEL 30 01 (Ed. 04 08)
constitute an undertaking, on behalf of the INSURED or others, to determine or warrant that property or operations
are safe, healthful or conform to acceptable engineering practice or are in compliance with any law, rule or regulation.
Access for the inspection and audit will be coordinated through the broker or agent of the FIRST NAMED INSURED.
K. JURISDICTION AND VENUE - It is agreed that in the event of the failure of the Company to pay any amount claimed
to be due hereunder, the Company and the INSURED will submit to the jurisdiction of the State of New York and will
comply with all the requirements necessary to give such court jurisdiction. Nothing in this clause constitutes or should
be understood to constitute a waiver of the Company's right to remove an action to a United States District Court.
L. OTHER INSURANCE - Subject to Section VI., Limit of Liability and Self -Insured Retention, this insurance shall apply
only in excess of the sum of the Self -Insured Retention amount stated in the Declarations and the applicable limits of
any other valid and collectible insurance available to the INSURED, whether such other insurance is stated to be
primary, pro rata, contributory, excess, contingent or otherwise, unless such other insurance is written only as specific
excess insurance over the applicable Limits of Liability of this Policy.
M. SEVERABILITY - Except with respect to the Limits of Liability, Self -Insured Retention, Exclusion 8. ("Insured vs.
Insured") and any rights and duties assigned in this Policy to the FIRST NAMED INSURED, this insurance applies as
if each INSURED were the only INSURED and separately to each INSURED against whom a CLAIM is made. Any
misrepresentation, act or omission that is in violation of a term, duty or condition under this Policy by one INSURED
shall not by itself affect coverage for another INSURED under this Policy. This Condition M. shall not apply to an
INSURED who is a parent, subsidiary or affiliate of the INSURED which committed the misrepresentation, act or
omission referenced above.
N. SOLE AGENT - The FIRST NAMED INSURED stated in the Declarations shall act on behalf of all INSUREDS for the
payment or return of premium, receipt and acceptance of any endorsement issued to form a part of this Policy, giving
and receiving notice of cancellation or non -renewal, and the exercise of the rights provided under Section V. —
EXTENDED REPORTING PERIOD.
O. SUBROGATION — If the INSURED has rights to recover, from another person or organization, all or any part of a
payment the Company makes under this Policy, those rights are transferred to the Company. The INSURED shall
execute and deliver instruments and papers and do whatever else is necessary to secure such rights. The INSURED
shall do nothing to prejudice such rights. Any monies recovered as a result of subrogation proceedings shall accrue
first to the INSURED to the extent of any payments it made in excess of the limits of liability, then to the Company to
the extent of its payment under the Policy, and then to the INSURED to the extent of its payment of the self -insured
retention. Expenses incurred in such subrogation proceedings shall be apportioned amongst the INSURED and
Company in the proportion that each interested party's share in the recovery bears to the total recovery.
(Page 12 of 12)
GREATAWRICAN Administrative Ofr1cas
580 Walnut Street
INSURANCE GROUP Cincinnati, Ohio 45202
Tel: 1-513-369-5000
WIT 00 02 (Ed. 04 08)
IN WITNESS WHEREOF, we have caused this policy to be executed and attested, and, if required by state law, this
policy shall not be valid unless countersigned by our authorized representative.
Secretary President
(Page 1 of 1)
CA SLN 90 00 (Ed. 04 08)
GREATWpjAdministrative Offices
1�.1 /L �' 580 Walnut Street
INSURANCE OROUP Cincinnati, Oh 45202
Tel: 1-513-369-5000
Policy No: PEL 8629840 00
FORMS AND ENDORSEMENTS SCHEDULE
It is hereby understood and agreed the following forms and endorsements are attached to and are a part of this policy:
Form and Edition Form Description
PEL 30 00 04/08 PREMISES ENVIRONMENTAL LIABILITY INSURANCE DECLARATIONS
PEL 30 01 04/08 PREMISES ENVIRONMENTAL LIABILITY INSURANCE POLICY
PEL 34 18 04/08 EXCLUSION OF TERRORISM COVERAGE
PEL MANUS 03/09 UNDERGROUND STORAGE TANK SELF -INSURED RETENTION ENDORSEMENT
PEL 31 30 04/08 UNDERGROUND STORAGE TANK SCHEDULE
(Page 1 of 1)
GREATEC�r
Administrative Offices
580 Walnut Street
INSURANCE GROUP
Cincinnati, Oh 45202
Tel: 1-513-369-5000
ENDORSEMENT #1
This endorsement, effective 12.01 a.m., 3/23/2009, forms a part of Policy No. PEL 8629840 00
issued to CITY OF VERNON By GREAT AMERICAN E & S INSURANCE COMPANY
PEL 34 18 (Ed. 04 08)
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
TERRORISM COVERAGE ENDORSEMENT
Pursuant to the requirements of the federal Terrorism Risk Insurance Act the INSURED has been provided notice that the
INSURED may elect to purchase coverage for loss covered under this Policy arising directly or indirectly as a result of
CERTIFIED ACT(s) OF TERRORISM and the premium charge for such coverage.
After receiving such notice, the INSURED has elected to purchase this Policy with coverage for such CERTIFIED ACT(s)
OF TERRORISM. Therefore, in consideration of the premium paid, the INSURED and the Company agree to the
following Policy changes;
SECTION IV. EXCLUSIONS, Hostile Acts is deleted and replaced with the following:
Hostile Acts
based upon or arising out of any consequence, whether direct or indirect, of declared or undeclared war, invasion,
act of foreign enemy, hostilities, and whether war be declared or not, civil war, rebellion, revolution, insurrection,
or military or usurped power, or in defending against any one or more of those.
This exclusion does not apply to CERTIFIED ACT(s) OF TERRORISM subject to the CAP ON CERTIFIED
TERRORISM LOSSES.
SECTION II. DEFINITIONS is amended by the addition of the following:
CERTIFIED ACT(s) OF TERRORISM means an act that is certified by the Secretary of the Treasury, in
concurrence with the Secretary of State and the Attorney General of the United States, to be an act of terrorism
as defined in Section 102(1) of the Terrorism Risk Insurance Act.
CAP ON CERTIFIED TERRORISM LOSSES, as established in the Terrorism Risk Insurance Act, means if the
aggregate insured losses attributable to CERTIFIED ACT(s) OF TERRORISM exceed $100 billion in a Program
Year (defined as January 1 through December 31) and we have met our insurer deductible under the federal
Terrorism Risk Insurance Act, the Company shall not be liable for the payment of any portion of the amount of
such losses that exceeds $100 billion, and in such case insured losses up to that amount are subject to pro rata
allocation in accordance with procedures established by the Secretary of the Treasury.
All other terms and conditions remain the same.
(Page 1 of 1)
�i
y+p //r�I�1.CA
AdministrativeGREATAOffices
�rq;
580 Walnut Street
INSURANCE GROUP
Cincinnati, Oh 45202
Tel: 1-513-369-5000
ENDORSEMENT #2
This endorsement, effective 12.01 a.m., 3/23/2009, forms apart of Policy No. PEL 8629840 00
issued to CITY OF VERNON By GREAT AMERICAN E & S INSURANCE COMPANY
PEL MANUS (Ed. 03 09)
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
UNDERGROUND STORAGE TANK SELF -INSURED RETENTION ENDORSEMENT
This endorsement modifies insurance provided under the following:
PREMISES ENVIRONMENTAL LIABILITY INSURANCE POLICY
The INSURED and the Company agree to the following Policy change(s):
Item 3. of the Declarations, Coverages and Coverage Section Limits of Liability and Self -Insured Retention is amended by
the addition of the following:
Notwithstanding the forgoing, a Self -Insured Retention of $50,000 will apply to LOSS, CLEAN-UP COSTS, and LEGAL
EXPENSE because of a POLLUTION CONDITION arising from or related to any UNDERGROUND STORAGE TANK
scheduled onto this Policy.
All other terms and conditions remain the same.
(Page 1 of 1)
PEL 31 30 (Ed. 04 08)
Administrative Offices
jj
GREAT�C�JCJW 560 Walnut Street
Cincinnati, Oh 45202
INSURANCE GROUP Tel: 1-513-369-5000
ENDORSEMENT #3
This endorsement, effective 12:01 a.m., 3/23/2009, forms a part of Policy No. PEL 8629840 00
issued to CITY OF VERNON By GREAT AMERICAN E & S INSURANCE COMPANY
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
UNDERGROUND STORAGE TANK SCHEDULE
This endorsement modifies insurance provided under the following:
PREMISES ENVIRONMENTAL LIABILITY INSURANCE POLICY
The INSURED and the Company agree to the following Policy change(s):
Section I., INSURING AGREEMENTS, A. Coverage A — POLLUTION LEGAL LIABILITY and B. Coverage B — ON -SITE
AND OFF -SITE CLEAN-UP COSTS apply to the UNDERGROUND STORAGE TANK(s) listed below:
COVERED LOCATION
UNDERGROUND
STORAGE TANK
CAPACITY
UNDERGROUND STORAGE TANK
CONTENTS
4305 Santa Fe Avenue, Vernon, CA 90058
10,000
Diesel
4305 Santa Fe Avenue, Vernon, CA 90058
8,000
Unleaded Gasoline
4305 Santa Fe Avenue, Vernon, CA 90058
8,000
Unleaded Gasoline
All other terms and conditions remain the same.
(Page 1 of 1)