FIRL Project Comm Umbrella ISO Rules...Compute the premium for each annual payment on the basis of...

COMMERCIAL UMBRELLA ISO RULES

© ISO Properties, Inc

SECTION I - GENERAL RULES

1. APPLICATION OF THIS DIVISION

A. Contents

Division Thirteen contains the rules, rating procedures and state exceptions for the Commercial Liability Umbrella Coverage Part and the Commercial Excess Liability Coverage Part.

B. Sections

This division is divided into separate sections for:

1. Section I - General Rules

2. Section II - Commercial Liability Umbrella Coverage Rules

3. Section III - Commercial Liability Umbrella Rating Procedures

4. Section IV - Commercial Excess Liability Coverage Rules

5. Section V - Commercial Excess Liability Rating Procedures

C. Rule Exceptions

Refer to state exceptions for any exception to the rules in this division.

2. REFERRALS TO COMPANY

Refer to company for:

A. Any applicable rating plan modification.

B. Rating or classifying any risk or exposure for which:

1. There is no manual rate or applicable classification for the underlying exposure, or

2. There is no underlying insurance.

Rates shall not be inadequate, excessive or unfairly discriminatory.

(For other refer-to-company situations, see Rule 14.)

Companies should maintain complete files, including all details of the factors used in determining the rate or classification for a particular risk and make these files available to state regulators on request. Such rates or classifications need not be filed with the state regulator.

The second paragraph of Paragraph B. shall not apply when a company has developed or prepared a manual or schedule of rates which includes a classification applicable to a risk being written. To the extent that filing requirements apply to such a manual or schedule of rates, they must be followed.

3. EFFECTIVE DATE

The date shown on the bottom of the manual page is a printing date and not necessarily the effective date. The effective date, if any, will be announced on the Notice to Manualholders accompanying new or revised manual pages.

4. POLICY TERM

A. Policies may be written for a specific term up to three years or on a continuous basis.

B. A policy may be renewed by renewal certificates. When renewal certificates are used, they must conform in every respect to current rules, rates and forms at the time of renewal.

5. PREMIUM COMPUTATION

A. Prepaid Policies

1. Compute the premium using the annual rates and/or factors in effect at policy inception multiplied by the policy term expressed in years (term factor), for example:

Term Of

Policy Term

Factor 6 months 0.5 18 months 1.5 2 years 2.0 3 years 3.0

Table 5.A.1. Prepaid Policies

2. If the term of the policy is less than 1 year, multiply the premium determined in Paragraph 1. by 1.1 unless the policy is issued to obtain anniversary dates common with other policies.

B. Annual Premium Payment Plan Policies

1. Compute the premium for each annual payment on the basis of the annual rates and/or factors in effect on each anniversary date of the policy.

If the estimated annual premium is less than $500, the premium adjustment for a policy written for a period of more than one year may be deferred until termination of the policy.

2. Prorate the premium in Paragraph 1. when the policy is issued for other than a whole number of years.

6. FACTORS OR MULTIPLIERS

Factors or multipliers are to be applied consecutively and not added together, unless otherwise specified.

7. ROUNDING PROCEDURE

A. Rates

Round rates, factors and multipliers after the final calculation to three decimal places. Five tenths or more of a mill shall be considered one mill, for example, .1245 = .125.

B. Premium

Round the premium for each coverage for which a separate premium is calculated to the nearest whole dollar. Round a premium involving $.50 or over to the next higher whole dollar.

8. POLICY WRITING MINIMUM PREMIUM

A. Prepaid Policies

1. Refer to company for policy writing minimum premium.

2. Apply a minimum premium regardless of term.

B. Annual Premium Payment Plan Policies Or Continuous Policies

1. Refer to company for policy writing minimum premium.

2. Apply a minimum premium for each annual period.

9. ADDITIONAL PREMIUM CHANGES

Paragraph A.2. is replaced by the following:

A. Calculation Of Premium

2. Apply the rates and rules in effect on the effective date of the policy or, if the change is made after an anniversary date of the policy, apply the rates and rules in effect on the anniversary date. Where the policy inception premium was less than the policywriting minimum premium, add the additional premium to the policy inception premium as the total premium for the policy. If the total premium is still below the policywriting minimum premium, charge the policywriting minimum premium instead.

9. ADDITIONAL PREMIUM CHANGES

A. Calculation Of Premium

1. Prorate all changes requiring additional premium.

2. Apply the rating rules in effect on the effective date of the policy, or, if the change is made after an anniversary date of the policy, apply the rating rules in effect on that anniversary date. The additional premium developed is in addition to any applicable policy writing minimum premium.

B. Waiver Of Premium

1. Additional premiums at or below a specified amount may be waived. Refer to company for the maximum amount to be waived.

2. This waiver applies only to that portion of the premium due on the effective date of the policy change.

10. RETURN PREMIUM CHANGES

A. Premium Computation

1. Compute return premium using the rating rules used to calculate the policy premium.

2. Compute return premium pro rata and round to the next higher whole dollar when any coverage or exposure is deleted or an amount of insurance is reduced. Retain the policy writing minimum premium.

B. Waiver Of Premium

1. Return premiums at or below a specified amount may be waived. Refer to company for the maximum amount to be waived.

2. This waiver applies only to that portion of the premium due on the effective date of the policy change.

3. Any return premium due the insured must be granted if the insured requests it.

11. POLICY CANCELLATIONS

Paragraph C. is replaced by the following:

C. Retention Of Policy Writing Minimum Premium

Do not retain the policy writing minimum premium:

1. When the return premium is calculated under Paragraph A.;

2. When the policy is cancelled as of the inception date;

3. When the return premium is calculated under Paragraph B., unless an exception has been sought under the provisions of Florida Regulations Section 4-170.010(2) by means of a prior approval filing for certain classes or types of risk as set forth in such filing. Refer to the insurer for information on exceptions, if any, in effect for that insurer.

11. POLICY CANCELLATIONS

A. Pro Rata Calculation

Compute return premium pro rata and round to the next higher whole dollar when a policy is cancelled:

1. At the Company's request.

2. Because the insured no longer has a financial or insurable interest in the property or business operation that is the subject of insurance.

3. And rewritten in the same company or company group.

4. After the first year for a prepaid policy written for a term of more than one year.

B. Other Calculations

If Paragraph A. does not apply, compute return premium as follows:

1. Continuous And Annual Premium Payment Policies

Compute return premium at .90 of the pro rata unearned premium for the one year or annual installment period and round to the next higher whole dollar.

2. Prepaid Policies

If cancelled during the first year, compute the return premium at .90 of the pro rata unearned premium for the first year, plus the full annual premium for the subsequent years and round to the next higher whole dollar.

3. Policies With Term Less Than One Year

Compute return premium at .90 of the pro rata unearned premium and round to the next higher whole dollar.

C. Retention Of Policy Writing Minimum Premium

Retain the Policy Writing Minimum Premium when return premium is calculated under Paragraph B. except when a policy is cancelled as of the inception date.

12. RESIDENT AGENT COUNTERSIGNATURE

Rule 12. does not apply.

12. RESIDENT AGENT COUNTERSIGNATURE

If a resident agent's countersignature is required by state law, use Resident Agent Countersignature Endorsement IL 09 17, unless state law prohibits use of such an endorsement, or so restricts such use as to make it inappropriate.

13. MINIMUM PREMIUMS

A. Definition

Minimum premiums are the lowest amounts for which insurance may be written for each full year of coverage.

B. Sublines

Minimum premiums apply separately to each type of underlying coverage.

C. Policy Writing Minimum Premium

Use the policy writing minimum premium if the total amount developed using this rule is less than the policy writing minimum premium.

14. SPECIAL RULE FOR INDIVIDUAL RISK SITUATIONS

Paragraph A.3.b. is replaced by the following:

b. For limits of liability obtained by means of facultative reinsurance, refer to company for the premium.

Paragraph B. is replaced by the following:

B. Filing Obligations

When a particular risk is modified in accordance with Paragraph A., companies should maintain a complete file, including all details of the factors used in determining the modification. Each company is responsible for complying with regulatory requirements.

Note


14. SPECIAL RULE FOR INDIVIDUAL RISK SITUATIONS

A. Refer To Company

1. For rating any risk or exposure for which:

a. Excess or Umbrella Liability Insurance is provided in an amount not less than $1,000,000 in excess of a specified retained limit provided such retained limit is not less than $350,000 per occurrence, as respects those exposures covered by underlying insurance; or

b. The coverage to be written is broader than that contained in the applicable Standard Commercial Liability Umbrella Coverage Part.

Note

To the extent that forms filing requirements apply, they must be followed.

2. If a Coverage Part is endorsed to restrict coverage for hazards not common to all risks within the same class.

Note

To the extent that forms filing requirements apply, they must be followed.

3. Where liability increased limits are provided and the risk is reinsured on a facultative basis.

The following rating procedure is available for the determination of the applicable premium:

a. Manual rules and rates shall apply to the portion of the limits of liability retained by the company.

b. For limits of liability obtained by means of facultative reinsurance, the premium shall be the facultative cost for such insurance increased by a charge up to but not exceeding 50%.

B. Filing Obligations

When a particular risk is modified in accordance with Paragraph A., companies should maintain a complete file, including all details of the factors used in determining the modification and make the file available to state regulators on request. Such modifications need not be filed with the state regulator.

Note


15. - 21. RESERVED FOR FUTURE USE

SECTION II - COMMERCIAL LIABILITY UMBRELLA COVERAGE RULES

SECTION II - COMMERCIAL LIABILITY UMBRELLA COVERAGE RULES

22. DESCRIPTION OF COMMERCIAL LIABILITY UMBRELLA COVERAGE

Paragraph C.3. is replaced by the following:

3. Refer to Mandatory State Endorsement

Florida Changes - Cancellation And Nonrenewal Endorsement CU 02 03.

22. DESCRIPTION OF COMMERCIAL LIABILITY UMBRELLA COVERAGE

A. A standard coverage form is available for Commercial Liability Umbrella risks to provide excess liability coverage for the ultimate net loss in excess of the retained limit for bodily injury, property damage, personal and advertising injury to which this insurance applies.

B. The Commercial Liability Umbrella Coverage Part provides:

1. Higher limits of insurance over primary underlying coverage;

2. Broader coverage than is generally available under primary underlying coverage; and

3. A drop-down feature when underlying coverage is exhausted.

C. For details of coverage:

1. Refer to coverage form:

Commercial Liability Umbrella Coverage Form CU 00 01.

2. Refer to mandatory multistate endorsements:

a. Broad Form Nuclear Exclusion Endorsement CU 21 23.

b. Recording And Distribution Of Material Or Information In Violation Of Law Exclusion Endorsement CU 00 04.

3. Refer to mandatory state endorsements in the state exceptions.

D. The appropriate:

1. Coverage form;

2. Mandatory endorsements (including those required for use in a particular state);

3. Other applicable endorsements;

4. The Declarations; and

5. The Common Policy Conditions ( IL 00 17)

make up a Coverage Part.

23. UNDERLYING COVERAGE

Underlying coverage is to be maintained for those Coverage Parts or Policies listed in the schedule of underlying insurance in the Declarations. At a minimum, underlying coverage must include Commercial General Liability Coverage, or its equivalent. If auto coverage is to be provided in the umbrella policy, underlying coverage must include a Commercial Automobile liability bond or policy. Underlying coverage may include a Businessowners Policy.

24. MINIMUM RETAINED LIMIT/MINIMUM UNDERLYING LIMIT

Retained limits are the minimum amounts of:

1. The limits of insurance of the underlying insurance for exposures covered by underlying insurance; and

2. Self-insured retention for those exposures not covered by underlying insurance.

Refer to Company for minimum retained limits.

25. DESCRIPTION OF ADDITIONAL OPTIONAL ENDORSEMENTS

Paragraph C.16. does not apply.

Paragraph D.4. is replaced by the following:

D. Special Provisions For Certain Types Of Risks Endorsements

4. Liability coverage for bodily injury to any volunteer firefighter or volunteer worker engaged in firefighting, rescue squad or ambulance corps operations may be excluded by attaching Florida Emergency Vehicles - Volunteer Firefighters And Workers Injuries Excluded Endorsement CU 22 42.


A. Additional Optional Endorsements

In addition to endorsements referenced in other rules under Division Thirteen - Commercial Liability Umbrella, the endorsements in this rule may be used with the Commercial Liability Umbrella Coverage Part. The endorsements are listed under the category identification. The descriptions are for ease of identification. Refer to each endorsement to determine its content. With regard to these optional endorsements, refer to company for rating unless the underlying policy contains the same endorsement and the "subject premium" used in calculating the umbrella policy premium contemplates the attachment of the endorsement.

B. Termination And Suspension Endorsements

The number of days' notice required for cancellation for any statutorily permitted reason (other than nonpayment of premium) may be increased to an amount that is mutually agreed upon by the insurer and the insured by attaching Earlier Notice Of Cancellation Provided By Us Endorsement CU 02 04. Any applicable state cancellation endorsement must still be attached to the policy.

C. Exclusion Endorsements

1. Liability arising out of any specific premises may be excluded by attaching Exclusion - All Hazards In Connection With Designated Premises Endorsement CU 21 00.

2. Liability arising out of the products-completed operations hazard may be excluded by attaching Exclusion - Products-completed Operations Hazard Endorsement CU 21 02. This endorsement should not be used when a Garage Coverage Form is used as underlying insurance.

3. Liability arising out of a specific project performed by or on behalf of the insured may be excluded by attaching Exclusion - Designated Work Endorsement CU 21 03.

4. Coverage for newly acquired or formed organizations provided by the Commercial Liability Umbrella Coverage Form may be deleted for the non-auto exposure by attaching Exclusion - New Entities Endorsement CU 21 04.

5. The coverage for employees provided by the Commercial Liability Umbrella Coverage Form may be deleted by attaching Exclusion - Employees As Insureds Endorsement CU 21 05.

6. Contractual liability coverage may be limited by attaching Contractual Liability Limitation Endorsement CU 21 07.

7. Liability coverage for property damage included within the explosion hazard, the collapse hazard or the underground property damage hazard may be limited to specified operations by attaching Exclusion - Explosion, Collapse And Underground Property Damage Hazard (Specified Operations) Endorsement CU 21 09. Liability coverage for property damage included within these hazards may be deleted with an exception for specified operations and certain other liabilities by attaching Exclusion - Explosion, Collapse And Underground Property Damage Hazard (Specified Operations Excepted) Endorsement CU 21 10.

8. Coverage may be limited to specific premises and/or projects by attaching Limitation Of Coverage To Designated Premises Or Project Endorsement CU 21 11 to the Commercial Liability Umbrella Coverage Part.

9. Liability arising out of the abuse or molestation:

a. Of a person in the care, custody or control of the insured may be excluded by attaching Abuse Or Molestation Exclusion Endorsement CU 21 12.

b. Of a person in the care, custody or control of the insured, during the rendering of a specific professional service, may be excluded by attaching Abuse Or Molestation Exclusion - Specified Professional Services Endorsement CU 21 70.

10. The Liquor Liability Exclusion under Coverage A - Bodily Injury And Property Damage Liability of the Commercial Liability Umbrella Coverage Part may be replaced by either of the following endorsements:

a. Amendment Of Liquor Liability Exclusion Endorsement CU 21 13.

This endorsement replaces the liquor liability exclusion in the Commercial Liability Umbrella Coverage Form. While the intent is the same, this exclusion avoids the phrase "in the business of . . . ".

b. Amendment Of Liquor Liability Exclusion - Exception For Scheduled Activities Endorsement CU 21 14.

As with Amendment Of Liquor Liability Exclusion Endorsement CU 21 13, this endorsement also replaces the liquor liability exclusion in the Commercial Liability Umbrella policy. It exempts, however, scheduled activities from the application of the exclusion.

11. Liability resulting from the rendering of or the failure to render financial services by any insured to others may be excluded by attaching Exclusion - Financial Services Endorsement CU 21 15 to a policy issued to risks such as:

a. Accountants;

b. Banks or other lending institutions;

c. Credit card companies or credit reporting agencies;

d. Credit Unions;

e. Securities brokers or dealers;

f. Financial investment services firms; or

g. Tax preparation and/or tax planning agencies.

Use Exclusion - Financial Services Endorsement CU 21 15 in conjunction with Exclusion - Fiduciary Or Representative Liability Of Financial Institutions Endorsement CU 22 04 when fiduciary coverage is also being excluded. Do not use Exclusion - Financial Services Endorsement CU 21 15 in conjunction with Repossessed Autos Endorsement CU 24 18.

12. Liability arising out of a specific ongoing operation maintained or operated by an insured may be excluded by attaching Exclusion - Designated Ongoing Operations Endorsement CU 21 16.

13. To address operations that are covered by a consolidated (wrap-up) insurance program, the following endorsements are available under the Commercial Liability Umbrella/Excess Liability Coverage programs:

a. Liability arising out of a specific operation where a consolidated (wrap-up) insurance program has been provided by the prime contractor/project manager or owner of the

construction project in which the named insured is involved may be excluded by attaching Exclusion - Designated Operations Covered By A Consolidated (Wrap-up) Insurance Program Endorsement CU 21 17.

b. Limited coverage may be provided for certain specified operation(s) covered under a consolidated (wrap-up) insurance program if such program has been cancelled, non-renewed or otherwise no longer applies for reasons other than the exhaustion of all available limits, whether such limits are available on a primary, excess or on any other basis, by attaching Limited Exclusion - Designated Operations Covered By A Consolidated (Wrap-up) Insurance Program Endorsement CU 21 84. The specific operation(s) that are addressed by this endorsement must be described in the schedule of the endorsement.

c. To provide excess liability coverage arising out of a specific operation covered under a consolidated (wrap-up) insurance program when the retained limit of such wrap-up has been exhausted, refer to Section IV - Commercial Excess Liability Coverage Rules of this manual.

14. Liability arising from the use of a non-owned aircraft may be excluded by attaching Exclusion - Non-owned Aircraft CU 21 24.

15. Liability arising out of pollution not otherwise precluded by the pollution exclusion contained in the Commercial Liability Umbrella Coverage Part:

a. May be totally excluded by attaching Total Pollution Exclusion Endorsement CU 21 25;

b. May be totally excluded, with the exception of liability arising out of a hostile fire, by attaching Total Pollution Exclusion With A Hostile Fire Exception Endorsement CU 21 51; or

c. May be totally excluded, with the exception of liability arising out of building heating, cooling or dehumidifying equipment or a hostile fire, by attaching Total Pollution Exclusion With A Building Heating, Cooling And Dehumidifying Equipment Exception And A Hostile Fire Exception Endorsement CU 21 52.

16. Liability arising out of fungi or bacteria on or within a building or structure, including its contents, may be totally excluded by attaching Fungi Or Bacteria Exclusion CU 21 27.

17. Liability arising out of the design, manufacture, construction, fabrication, preparation, installation, application, maintenance or repair, including remodeling, service, correction or replacement, of any exterior insulation and finish system or any part thereof may be excluded by attaching Exclusion - Exterior Insulation And Finish Systems Endorsement CU 21 42.

18. Liability arising out of designated products may be excluded by attaching Exclusion - Designated Products Endorsement CU 21 43.

19. Liability arising out of silica or silica-related dust may be excluded by attaching Silica Or Silica-related Dust Exclusion Endorsement CU 21 50.

20. To exclude liability arising out of a tort liability for which the named insured or anyone acting on behalf of the named insured did not contribute, in whole or in part, to the bodily injury or property damage, attach Amendment Of Insured Contract Definition Endorsement CU 24 30.

21. Liability arising out of the actual or alleged transmission of a communicable disease may be excluded by attaching Communicable Disease Exclusion Endorsement CU 21 58.

D. Special Provisions For Certain Types Of Risks Endorsements

1. Liability arising out of riot, civil commotion or mob action, or any act or omission in connection with the prevention or suppression of these activities by the insured governmental entity may be excluded by attaching Exclusion - Riot, Civil Commotion Or Mob Action - Governmental Subdivisions Endorsement CU 22 03.

2. Liability arising out of streets, roads or highways and bridges owned, maintained, constructed or controlled by an insured governmental subdivision may be excluded by attaching Exclusion - Existence Or Maintenance Of Streets, Roads, Highways Or Bridges Endorsement CU 22 06.

3. Limited coverage for liability arising out of property damage included in the underground resources and equipment hazard may be provided by attaching Underground Resources And Equipment Coverage Endorsement CU 22 16.

4. Liability coverage for bodily injury to any volunteer firefighter or volunteer worker engaged in firefighting, rescue squad or ambulance corps operations may be excluded by attaching Emergency Vehicles - Volunteer Firefighters And Workers Injuries Excluded Endorsement CU 22 25.

However, with respect to the auto exposure, liability coverage may be provided for volunteer firefighters and volunteer workers engaged in rescue squad and ambulance corps operations for bodily injury to, or sickness, disease or death of other volunteer firefighters and volunteer workers engaged in rescue squad and ambulance corps operations. Use Emergency Vehicles - Fellow Volunteer Firefighters And Workers Injuries Exclusion Buyback Endorsement CU 22 26.

5. Leasing Or Rental Concerns

a. To exclude liability coverage for certain leased autos arising out of acts or omissions of the lessee or rentee, use Leasing Or Rental Concerns - Exclusions Of Certain Leased Autos Endorsement CU 22 27.

b. To delete coverage for the owner or rentee of a "rent-it-there/leave-it-here" auto not owned by the insured, use Leasing Or Rental Concerns - Rent-it-there/Leave-it-here Endorsement CU 22 28.

c. To indicate specific limits for owned autos, use Leasing Or Rental Concerns - Schedule Of Limits For Owned Autos Endorsement CU 22 29.

6. For farm trailers and semitrailers, with a load capacity exceeding 2,000 pounds, and used to haul only agricultural produce on a seasonal basis, which meet the following qualifications:

a. Principally garaged on a farm or ranch;

b. Not used in any occupation other than farming or ranching; and

c. Not used to haul livestock.

Use Agricultural Produce Trailers - Seasonal Endorsement CU 22 32.

7. To provide liability coverage for non-trucking use when the autos are neither rented, nor used for business purposes to carry property or to haul someone else's trailers (otherwise known as "bob-tail" coverage), use Truckers - Insurance For Non-trucking Use Endorsement CU 22 35.

8. To provide coverage for liability assumed under the Uniform Intermodal Interchange And Facilities Access Agreement, use Truckers Uniform Intermodal Interchange Endorsement Form UIIE-1 CU 22 36.

9. To provide coverage to a named lessee trucker for the use of a covered auto the named insured owns or hires, use Truckers - Named Lessee As Insured Endorsement CU 22 38. This named lessee shall be given 30 days' advance notice if this policy is canceled or the Liability Coverage Limit is reduced.

10. To provide liability coverage to an auto used by driving schools to give driving instruction, use Driving Schools Endorsement CU 22 39.

11. Attach:

a. Fiduciaries - Fiduciary Interest Endorsement CU 24 06 to provide fiduciary coverage for banks or other organizations at no additional charge. This endorsement also adds the following as additional insureds:

(1) Any co-fiduciary or co-representative of the named insured with respect to acts or omissions as such;

(2) With respect to acts or omissions of the named insured in a fiduciary or representative capacity, any person or organization responsible therefore; and

(3) Any beneficiary, devisee, legatee, ward, heir or distributee of the trust, guardianship or estate, and any co-owner or life tenant of the property, with respect to acts or omissions as such.

b. Financial Institutions - Fiduciary Interest Only Endorsement CU 24 04 to limit liability coverage to only provide coverage to a bank or any other financial institution for its trust operations.

c. Exclusion - Fiduciary Or Representative Liability Of Financial Institutions Endorsement CU 22 04 if fiduciary coverage is not provided for banks or other financial institutions.

Do not use Repossessed Autos Endorsement CU 24 18 in conjunction with any of the above endorsements.

12. Real estate agents:

If the insured does not desire coverage for premises owned, operated or managed by or in the care, custody or control of the insured for any purposes other than for use primarily as offices in conducting the named insured's general business and renting offices located in buildings managed by the insureds use Limitation Of Coverage - Real Estate Operations Endorsement CU 22 15.

13. Faculty liability for corporal punishment of students use Corporal Punishment Endorsement CU 22 19.

14. Liability for damages to the insured's work arising out of work performed by a subcontractor for a contractor or subcontractor may be excluded by attaching Exclusion - Damage To Work Performed By Subcontractors On Your Behalf Endorsement CU 22 64 or Exclusion - Damage To Work Performed By Subcontractors On Your Behalf - Designated Sites Or Operations Endorsement CU 22 61.

15. Liability coverage arising out of any professional services related to testing, evaluation, advice or consulting performed by or on behalf of the insured may be excluded by attaching Exclusion - Testing Or Consulting Errors And Omissions Endorsement CU 22 84.

16. Liability coverage arising out of the rendering or failure to render Internet service or Internet access by or on behalf of any insured may be excluded by attaching Exclusion - Internet Service Providers And Internet Access Providers Errors And Omissions Endorsement CU 22 85.

17. Liability coverage arising out of the rendering or failure to render web-site designer or consultant services by the insured or anyone for whom the insured has responsibility

may be excluded by attaching Professional Liability Exclusion - Web-site Designers Endorsement CU 22 86.

18. Liability coverage arising out of any canoe or rowboat owned or used by or rented to the insured may be provided by attaching Canoes Or Rowboats Endorsement CU 24 40.

E. Coverage Amendment Endorsements

1. The company agrees that its right to use charitable immunity, where applicable as a defense for liability suits, will be waived unless the insured requests otherwise, by attaching Waiver Of Charitable Immunity Endorsement CU 24 02.

2. The company's right of subrogation against designated persons or organizations may be waived under certain circumstances, prior to a loss, by attaching Waiver Of Transfer Of Rights Of Recovery Against Others To Us Endorsement CU 24 03.

3. The company agrees that its right to use governmental immunity, where applicable as a defense for liability against an insured governmental entity, will be waived, unless the insured requests otherwise, by attaching Waiver Of Governmental Immunity Endorsement CU 24 08.

4. To provide coverage for liability of a railroad assumed by the insured when a Railroad Protective Liability Policy has not been purchased by the insured nor requested by the railroad:

a. Attach Contractual Liability - Railroads Endorsement CU 24 09; or

b. Attach Limited Contractual Liability - Railroads Endorsement CU 24 31 to exclude liability arising out of a tort liability for which the named insured or anyone acting on behalf of the named insured did not contribute, in whole or in part, to the bodily injury or property damage.

5. Fellow Employee Coverage:

a. To provide this coverage for all of the named insured's employees, use Fellow Employee Auto Coverage CU 24 14.

b. To provide this coverage only for designated employees, job titles, or positions, use Fellow Employee Auto Coverage For Designated Employees/Positions CU 24 15.

6. The exclusion relating to property damage to the named insured's products may be eliminated. Use Broad Form Products Coverage Endorsement CU 24 16.

7. To provide coverage for a private passenger type auto not used for public transportation or rented to others; or a pick-up or van not used in the business of the named

insured other than for farming or ranching, issued to an individual named insured, use Individual Named Insured - Auto Coverage Endorsement CU 24 17.

8. To provide auto finance companies and banks coverage for the repossession and use in connection with reselling financed autos, use Repossessed Autos Endorsement CU 24 18.

9. When notice of cancellation is required by the lessor, use Lessor - Additional Insured And Loss Payee Endorsement CU 24 19.

10. The exclusion relating to professional services may be eliminated. Use Coverage For Professional Services CU 24 23.

11. The definition of bodily injury may be replaced to broaden coverage. Use Broadened Bodily Injury Endorsement CU 24 20.

12. To provide coverage for loss of computerized or electronically stored data or software which results from physical injury to tangible property, attach Electronic Data Liability Endorsement CU 04 02.

13. To limit the worldwide coverage territory provided in the Commercial Liability Umbrella Coverage Form:

a. Attach Limited Coverage Territory Endorsement CU 24 32 to limit the coverage territory, except as otherwise provided, to the United States of America (including its territories and possessions), Puerto Rico and Canada;

b. Attach Limited Coverage Territory - Additional Scheduled Countries Endorsement CU 24 33 to limit the coverage territory, except as otherwise provided, to the United States of America (including its territories and possessions), Puerto Rico and Canada, and to those countries listed in the Schedule of the endorsement; or

c. Attach Amendment Of Coverage Territory - Worldwide Coverage With Specified Exceptions Endorsement CU 24 35 to provide worldwide coverage, except for those countries listed in the Schedule of the endorsement.

14. To provide a separate aggregate limit for damages because of bodily injury or property damage included in the products-completed operations hazard, use Products-completed Operations Aggregate Limit Endorsement CU 24 36.

F. Policy Changes Endorsement

To change the following items of a policy:

1. Insured's Name

2. Insured's Mailing Address

3. Policy Number

4. Company

5. Effective/Expiration Date

6. Insured's Legal Status/Business of Insured

7. Payment Plan

8. Premium Determination

9. Additional Interested Parties

10. Coverage Forms and Endorsements

11. Limits/Exposures

12. Self-insured Retention

13. Covered Property/Located Description

14. Classification/Class Codes

15. Rates

16. Underlying Insurance

use CU 22 40 Policy Changes.

26. RISK-SPECIFIC ENDORSEMENTS

The following is added to Paragraph A.:

Drugstores - Neither company rates nor ISO loss costs for products (including professional) coverage afforded under Druggists Endorsement CU 22 20 contemplate the exposure created by Florida statutes, which expands the traditional duties and responsibilities of pharmacists.

To provide such coverage, attach Druggists - Broadened Coverage Endorsement CU 22 63 instead of CU 22 20. Refer to company for rating.

26. RISK-SPECIFIC ENDORSEMENTS

A. The following risks are found under the Commercial Lines Classification Table for Division Six - General Liability. The endorsements listed in the table below are mandatory for the types of risks indicated. They are optional for all other risks. Refer to company for rating when the application of the endorsement is optional.

Risks Endorsements Alarms - Security Systems -

Monitoring Personal and advertising injury is excluded. Use

Exclusion - Personal And Advertising Injury Endorsement CU 21 06.

Athletic Programs - Amateur - Coverage does not apply to bodily injury to

participants in athletic Not for profit only contests. Use Exclusion - Athletic Or Sports

Participants Other than not for profit Endorsement CU 21 01. Athletic Games Sponsored by the

insured -

Not for profit only Other than not for profit Athletic or Sports Contests - in

buildings -

lessees - Not for profit only Other than not for profit Athletic Teams - professional or

semi-

professional Boats - Canoes or Rowboats - Coverage is provided for owned canoes or rowboats.

Use Canoes or Rowboats Endorsement CU 24 40. For rent - not equipped with

motors

Not for rent - not equipped with motors

This includes docks and buildings or premises used exclusively for

boat storage and the incidental sale of canoes or rowboats, not

equipped with motors, owned by the insured. Buildings or Premises - bank and

other For bank risk or other financial institutions, coverage

for its insurance

Risks Endorsements financial institutions and related operations may be excluded. Use

Exclusion - Insurance And Related Operations Endorsement CU 21 75. Camps - Coverage is provided for scheduled boats and

watercraft. Use Boats For profit Endorsement CU 24 07 Not for profit Carnivals - outside (sponsor's risk

only) - Coverage does not apply to injury or damage arising

out of Not for profit only mechanically operated amusement devices or to

bodily injury to Other than not for profit participants in athletic contests sponsored by the

insured. Carnivals or circuses - in tents

(sponsor's risk Use Exclusion - Described Hazards (Carnivals,

Circuses And Fairs) only) - Endorsement CU 22 14. Not for profit only Other than not for profit Computer Software Mfg. - Pre-

packaged Use Exclusion - Property Damage To Electronic Data

(Computer Software Manufacture) Endorsement CU 22 23 to

exclude property damage to electronic data arising out of computer

software programs developed or manufactured by the insured or

manufactured by the insured under any licensing, franchising or similar

agreement for products liability coverage. Detective or Investigative Agencies -

private Personal and advertising injury is excluded. Use

Exclusion - Personal And Advertising Injury Endorsement CU 21

06. Drugstores Products Coverage for Drugstores with and without

table or counter service for beverage or food includes professional

coverage. Use Druggist Endorsement CU 22 20. Electric light or power companies Injury or damage resulting from a failure to supply is

excluded. Use

Risks Endorsements Electric light or power cooperatives -

rural Failure To Supply Endorsement CU 22 09.

electrification administrators projects only

Employment Agencies Personal and advertising injury is excluded. Use


06. Exhibitions - in buildings - Coverage does not apply to bodily injury to

participants in athletic Not for profit only contests. Use Exclusion - Athletic Or Sports

Participants Other than not for profit Endorsement CU 21 01. Exhibitions - in buildings - no

admission

charged - Not for profit only Other than not for profit Exhibitions - outside - in stadiums or

on

premises having grandstands or bleachers not

erected by or for the insured - Ushers or other attendants in

stands

not provided by the insured Ushers or other attendants in

stands

provided by the insured Exhibitions - outside - no stadiums

or

grandstands Fairs - outside (operator's risk only) Coverage does not apply to injury or damage arising

out of mechanically operated amusement devices or to

bodily injury to participants in athletic contests sponsored by the

insured. Use Exclusion - Described Hazards (Carnivals,

Circuses And Fairs) Endorsement CU 22 14.

Risks Endorsements Fishing ponds or lakes -

commercially Coverage is provided for scheduled boats and

watercraft. Use Boats operated Endorsement CU 24 07. Fuel oil or Kerosene - Injury or damage resulting from a failure to supply is

excluded. Use Dealers Failure To Supply Endorsement CU 22 09. Distributors Gas companies Injury or damage resulting from a failure to supply is

excluded. Use Gas companies - natural gas local

distribution Failure To Supply Endorsement CU 22 09.

Gas dealers LPG Gas dealers or distributors Gas distributors LPG Gasoline Recovery - from casing

head or Coverage does not apply to property damage arising

out of the natural gas underground resources and equipment hazard. Use

Exclusion - Underground Resources And Equipment

Endorsement CU 22 13.

Guides or Outfitters Operation of owned watercraft is included. Use Boats Endorsement CU 24 07.

Hearing Aid Stores Products coverage under this classification includes

professional coverage. Use Optical And Hearing Aid

Establishments Endorsement CU 22 18. Hotels and motels - with pools or

beaches - Coverage is provided for owned canoes or rowboats.

Use Canoes or Rowboats Endorsement CU 24 40. Less than 4 stories Four stories or more Hotels and motels - without pools or

beaches -

Less than 4 stories Four stories or more Hotels and motels - (lessor's risk

only) -

Less than 4 stories Four stories or more

Risks Endorsements Housing projects - Federal, State and

Local Use Exclusion - Housing Project Sites Endorsement

CU 22 05. Insurance Agents Professional services are excluded. Use Exclusion -

Insurance And Related Operations Endorsement CU 21 75. Labor Union Offices Personal and advertising injury is excluded. Use

Exclusion - Personal And Advertising Injury Endorsement Cu 21

06. Laundries and dry cleaners - self

service Property damage to laundry or dry cleaning is

excluded. Use Exclusion - Laundry And Dry Cleaning Damage

Endorsement CU 22 10. Lawyer Offices - Personal and advertising injury is excluded. Use

Exclusion - Not for profit only Personal And Advertising Injury Endorsement CU 21

06. Other than not for profit In order to provide limited coverage for personal and

advertising injury that does not arise out of a lawyer's professional services, do not attach Endorsement CU 21 06. Refer to company for rating.

Natural gas Coverage does not apply to property damage to oil,

gas, water or Natural gas - within the limits of any

town or other material substances caused by saline substance

city on the right-of-way of any railroad, or in any ocean, gulf or bay

contamination. Use Exclusion - Saline Substances Contamination Endorsement CU 22 08.

Oil or gas lease operations - Coverage does not apply to property damage arising

out of the Natural gas underground resources and equipment hazard. Use

Exclusion - Natural gas - within the limits

of any Underground Resources And Equipment

Endorsement CU 22 13. town or city on the right-of-

way of any

railroad, or in any ocean, gulf or bay

Oil or gas wells - Cleaning or swabbing by

contractors

Risks Endorsements within the limits of any town

or city, on

the right-of-way of any railroad, or in

any ocean, gulf or bay Drilling or redrilling,

installation or

recovery of casing Drilling or redrilling,

installation or

recovery of casing - within the limits of any town or city, on the right-of-way of

any railroad, or in any ocean, gulf or

bay Non-operating working

interest

Servicing - by contractors Shooting Optical Goods Stores Products coverage under this classification includes

professional coverage. Use Optical And Hearing Aid

Establishments Endorsement CU 22 18. Political Campaign Headquarters or

Offices Personal And Advertising Injury is excluded. Use


06. Professional and Trade Associations

- no Personal and advertising injury is excluded. Use

Exclusion - buildings or premises owned or

leased except Personal And Advertising Injury Endorsement CU 21

06. as offices - Not for profit only Other than not for profit Race tracks - motorized vehicles - Coverage does not apply to bodily injury to

participants in athletic Sponsor's risk only contests. Use Exclusion - Athletic Or Sports

Participants Operators Endorsement CU 21 01 Race tracks - operators Racing - sponsor's risk only

Risks Endorsements Railroad construction As respects to construction or maintenance

operations performed by railroads, including the laying, relaying or removal of

tracks or maintenance of ways, does not apply to bodily injury

or property damage arising out of movement of rolling stock,

except rolling stock assigned to the job while at the job site. Use

Exclusion - Rolling Stock - Railroad Construction Endorsement CU 22

07.

Railroad operations and maintenance - without bodily injury passenger hazard

Use Exclusion - Bodily Injury To Railroad Passengers Endorsement CU 22 00.

Rodeos Coverage does not apply to bodily injury to

participants in athletic contests. Use Exclusion - Athletic Or Sports

Participants Endorsement CU 21 01. Schools - Coverage does not apply to bodily injury to any

person if no insured Not for profit only has direct management, organization or supervision

of sports or Other than not for profit athletic contests. Use Colleges Or Schools

Endorsement CU 22 21. Dormitory facilities - If corporal punishment is not provided, use Exclusion

- Corporal Not for profit only Punishment Endorsement CU 22 02 with all of these

risks except Other than not for profit dormitory facilities. Private - elementary,

kindergarten or

junior high - Not for profit Other than not for profit Public - elementary,

kindergarten or

junior high Private - high - Not for profit Other than not for profit

Risks Endorsements Public - high Trade or vocational Colleges, universities, junior

colleges

or college preparatory - Not for profit; Other than not for profit Security and patrol agencies Personal and advertising injury is excluded. Use


06. Property entrusted to the insured is excluded. Use

Exclusion - Property Entrusted Endorsement CU 22 01. Seed merchants To exclude erroneous delivery, error in mixture and

germination failure, use Exclusion - Erroneous Delivery Or

Mixture And Resulting Failure Of Seed To Germinate - Seed Merchants

Endorsement CU 22 22; To cover erroneous delivery, error in mixture and

resulting germination failure, use Seed Merchants - Coverage

For Erroneous Delivery Or Mixture And Resulting Failure Of Seed

To Germinate Endorsement CU 24 10; To cover erroneous delivery, and error in mixture

(excluding germination failure), use Seed Merchants - Coverage

For Erroneous Delivery Or Mixture (Resulting Failure Of Seed To

Germinate Not Included) Endorsement CU 24 11. Soap box derbies Coverage does not apply to bodily injury to

participants in athletic contests. Use Exclusion - Athletic Or Sports

Participants Endorsement CU 21 01. Stadiums - operated by insured - Coverage does not apply to bodily injury to

participants in athletic

Risks Endorsements Not for profit only contests. Use Exclusion - Athletic Or Sports

Participants Other than not for profit Endorsement CU 21 01. Steam heating or steam power

companies Injury or damage resulting from a failure to supply is

excluded. Use Failure To Supply Endorsement CU 22 09. Telecommunication Equipment

Providers Coverage is excluded for liability because of errors

or omissions Telecommunication Service

Providers arising out of the insured's evaluation, consultation or

advice provided to others. Use Exclusion -

Telecommunication Equipment Or Service Providers Errors And Omissions

Endorsement CU 22 24

Warehouse - cold individual storage

lockers Property entrusted to the insured is excluded. Use

Exclusion - Property Entrusted Endorsement CU 22 01. Warehouses - mini-warehouses Property entrusted to the insured is excluded. Use

Exclusion - Property Entrusted Endorsement CU 22 01. Washing Machines, Dryers Or

Ironers - coin Property damage coverage excludes injury or

destruction of laundry. meter type Use Exclusion - Laundry And Dry Cleaning Damage

Endorsement CU 22 10. Water companies Injury or damage resulting from a failure to supply is

excluded. Use Failure To Supply Endorsement CU 22 09.

Table 26.A.

B. The following risks are Division One - Commercial Auto related. The endorsements listed below are mandatory for the types of risks indicated. They are optional for all other risks. Refer to company for rating when the application of the endorsement is optional.

1. Garages - When the Garage Coverage Form is used as underlying insurance, use Garage Endorsement CU 22 31.

2. Leasing or Rental Companies - To exclude any lessee or rentee, or any employee or agent of the lessee or rentee, use Leasing Or Rental Concerns - Lessees And Rentees Excluded Endorsement CU 22 30.

3. Motor Carriers - When the Motor Carrier Coverage Form is used as underlying insurance, use Motor Carrier Endorsement CU 22 37.

4. Public Transportation Autos - To delete the exclusion for damages to passengers' property, use Public Transportation Autos Endorsement CU 22 33.

5. Truckers - When the Truckers Coverage Form or a Business Auto Coverage Form with a Truckers Endorsement is used as underlying insurance, use Truckers Endorsement CU 22 34.

27. SPECIAL RULES APPLICABLE TO THE UNDERLYING CLAIMS-MADE COVERAGE FORM CU 27 00

A. Coverage

Coverage under the Commercial Liability Umbrella Coverage form assumes that the underlying insurance is provided on an "occurrence" basis. If any underlying coverage for any exposure is on a claims-made basis, Underlying Claims-Made Coverage Endorsement CU 27 00 must be attached to convert the excess coverage for those exposures to a claims-made basis.

B. Retroactive Date

The Retroactive Date is a specific date entered on the Declarations Page of the underlying insurance. Any bodily injury, property damage or personal and advertising injury which occurred prior to the Retroactive Date is not covered, even if a claim for such injury or damage is first made during the policy period or any applicable Extended Reporting Period. Once a Retroactive Date is established for an insured, it can only be advanced if the Retroactive Date of the underlying insurance is advanced.

If "none" is entered on the Declarations Page of the underlying insurance, there is no Retroactive Date. If there is no Retroactive Date, coverage may be afforded for bodily injury, property damage or personal and advertising injury occurring prior to the inception date of the policy.

C. Extended Reporting Periods

1. If the circumstances relating to the termination, renewal or replacement of the claims-made coverage specified in Endorsement CU 27 00 are met, an extended reporting period will be provided. Under the extended reporting period, a claim first received and recorded during the extended reporting period will be deemed to have been made on the last day of the policy period. The claim must be for damages because of bodily injury or property damage liability

which occurred, or because of personal and advertising injury liability caused by an offense committed, before the end of the policy period, but not before the applicable Retroactive Date.

A Basic Extended Reporting Period is automatically provided at no additional charge. This period begins with the end of the policy period and lasts for:

a. 5 years, with respect to claims because of bodily injury or property damage arising from occurrences and claims because of personal and advertising injury arising out of offenses reported and given to the company between the applicable Retroactive Date and 60 days after the end of the policy period; and

b. 60 days, with respect to claims arising from occurrences or offenses not previously reported or given to the company.

The Basic Extended Reporting Period does not apply to claims that are covered under subsequent insurance purchased, or to claims that would be covered but for the exhaustion of the amount of insurance applicable to such claims.

2. The Basic Extended Reporting Period does not reinstate or increase the limits under the policy.

3. A Supplemental Extended Reporting Period of unlimited duration is available by attaching Supplemental Extended Reporting Period Endorsement CU 27 03 for an additional charge. The Named Insured must request this endorsement in writing within 60 days after the end of the policy period. This Supplemental Extended Reporting Period starts:

a. 5 years after the end of the policy period for claims arising out of an occurrence or offense reported to the company not later than 60 days after the policy period, in accordance with Paragraph 2.a. of the Duties In The Event of Occurrence, Offense, Claim or Suit Condition of Section IV - Commercial Liability Umbrella Conditions; and

b. 60 days after the end of the policy period with respect to claims arising from occurrences or offenses not previously reported or given to the company.

4. Refer to company for rating the Supplemental Extended Reporting Period Endorsement.

5. If the Supplemental Extended Reporting Period is in effect, a supplemental aggregate limit will be provided, but only for claims first received and recorded during the Supplemental Extended Reporting Period.

The supplemental aggregate limits will be equal to the dollar amount shown in the Declarations in effect at the end of the policy period for those coverages written on a claims-made basis in the underlying insurance.

D. Exclusion Of Specific Accident(s), Products, Work Or Location(s)

1. Coverage for bodily injury or property damage arising out of specific accidents, products, work or locations may be excluded by attaching Exclusion Of Specific Accidents, Products, Work Or Location Endorsement CU 27 01 to a new or renewal claims-made policy.

2. If the Exclusion Of Specific Accidents, Products, Work Or Location Endorsement CU 27 01 is attached to a renewal of claims-made coverage, and the preceding policy:

a. Was issued by your company; and

b. Provided coverage for the newly excluded accident, product, work or location.

Amendment - Extended Reporting Periods For Specific Accidents, Products, Work Or Location Endorsement CU 27 02 must be attached to that preceding policy. This Endorsement CU 27 02 amends Extended Reporting Periods of the preceding policy so that a basic extended reporting period is provided for:

a. 5 years with respect to claims arising from occurrences reported to the company between the applicable Retroactive Date and 60 days after the policy period; and

b. 60 days for all other claims arising out of the specific accidents, products, work or locations newly excluded on renewal.

The insured is also given the option of purchasing a supplemental extended reporting period of unlimited duration.

3. A Supplemental Extended Reporting Period for Specific Accidents, Products, Work Or Locations CU 27 04 may be provided. Use Supplemental Extended Reporting Period Endorsement For Specific Accidents, Products, Work Or Locations CU 27 04. Refer to company for rating.

If the Supplemental Extended Reporting Period is in effect, a supplemental aggregate limit will be provided, but only for claims first received and recorded during the Supplemental Extended Reporting Period.

The supplemental aggregate limit will be equal to the dollar amount shown in the Declarations in effect at the end of the policy period for those coverages written on a claims-made basis in the underlying insurance.

28. RESERVED FOR FUTURE USE

29. COVERAGE FOR INSUREDS FOR INJURIES TO LEASED WORKERS

Paragraph A. is replaced by the following:

A. Coverage

This paragraph does not apply.

29. COVERAGE FOR INSUREDS FOR INJURIES TO LEASED WORKERS

A. Coverage

Coverage for bodily injury sustained by a leased worker while performing duties related to the conduct of the named insured's business may be provided, by mutual agreement between the insurer and the insured, by attaching Coverage For Injury To Leased Workers Endorsement CU 04 00 to all policies.

Refer to company for rating.

B. Definition

Leased worker means a person leased to the named insured by a labor leasing firm under an agreement between the named insured and the labor leasing firm, to perform duties related to the conduct of the named insured's business. A leased worker does not include a temporary worker who is furnished to the named insured for a finite time period to support or supplement the named insured's work force in special work situations such as employee absences, temporary skill shortages and seasonal workloads.

30. YEAR 2000 COMPUTER-RELATED ENDORSEMENTS FOR OTHER THAN AUTO EXPOSURE

Choose one of the following options:

A. Option One - Exclusion - Year 2000 Computer-Related And Other Electronic Problems Endorsement

To exclude coverage for all risks associated with the change to the year 2000, attach Exclusion - Year 2000 Computer-Related And Other Electronic Problems Endorsement CU 21 18 to the Commercial Liability Umbrella Coverage Part.

B. Option Two - Exclusion - Year 2000 Computer-Related And Other Electronic Problems - Products/Completed Operations Endorsement

To exclude only products/completed operations coverage for computer or computer-related, actual or alleged failure, malfunction, inadequacy or inability to correctly recognize, distinguish, interpret or accept the year 2000 and beyond, attach Exclusion - Year 2000 Computer-Related And Other Electronic Problems - Products/Completed Operations Endorsement CU 21 19.

C. Option Three - Year 2000 Computer-Related And Other Electronic Problems - Limited Coverage Options Endorsements

Optional coverage for liability arising out of computer-related problems due to the year 2000 may be provided by attaching Year 2000 Computer-Related And Other Electronic Problems - Limited Coverage Options Endorsement CU 04 01 to the Commercial Liability Umbrella Coverage Part.

Insurers and insureds must agree on the type of coverage to be provided by checking the appropriate box(es) in Schedule A - Coverages To Be Provided and the location, operation, product or service that will receive coverage by filling in the proper information in Schedule B - Description Of Location, Operations, Products Or Services To Be Covered.


D. Option Four - Exclusion - Year 2000 Computer-Related And Other Electronic Problems - With Exception For Bodily Injury On Your Premises

To exclude coverage for risks associated with the change to the year 2000, other than bodily injury on your premises, attach Exclusion - Year 2000 Computer-Related And Other Electronic Problems - With Exception For Bodily Injury On Your Premises Endorsement CU 21 20 to the Commercial Liability Umbrella Coverage Part.

E. Option Five - Year 2000 Computer-Related And Other Electronic Problems - Exclusion Of Specified Coverages For Designated Locations, Operations, Products Or Services

To exclude coverage for specific aspects of insured risks arising out of computer-related problems due to the change to the year 2000, for specified locations, operations, products or services, attach Year 2000 Computer-Related And Other Electronic Problems - Exclusion Of Specified Coverages For Designated Locations, Operations, Products Or Services Endorsement CU 21 21 to the Commercial Liability Umbrella Coverage Part.

Insurers and insureds must agree on the type of coverage to be excluded by checking the appropriate box(es) in Schedule A - Coverages To Be Excluded and the location, operation,

product or service that will be excluded by filling in the proper information in Schedule B - Description Of Location, Operations, Products Or Services To Be Excluded.


F. Option Six - No Endorsements

If options A, B, C, D or E are not chosen, attach no endorsement, and

1. Refer to company any risk that presents a unique or unusual year 2000 exposure, or

2. For all other risks, use the otherwise applicable rules and rates.

31. UNINSURED MOTORISTS COVERAGE

The following is added to Rule 31.:

C. Excess Uninsured Motorists Insurance must be offered as part of the application for Umbrella Coverage at limits at least equal to $1,000,000 or the bodily injury liability limits, whichever is less. Use Florida Excess Uninsured Motorists Coverage Endorsement CU 31 04.

For excess uninsured motorists coverage on a split limits basis, use Split Uninsured And Underinsured Motorists Coverage Limits Endorsement CU 31 07 and Florida Excess Uninsured Motorists Coverage Endorsement CU 31 04.


Some states require excess uninsured motorists coverage to be provided. Refer to the state exceptions for:

A. Applicable excess uninsured and/or underinsured motorists coverage endorsements.

B. State requirements concerning the offering, providing and where applicable, rejection of uninsured and/or underinsured motorists coverage.

32. TERRORISM ENDORSEMENT OPTIONS - FEDERAL BACKSTOP

Refer to the Terrorism Supplement to the CLM.

32. TERRORISM ENDORSEMENT OPTIONS - FEDERAL BACKSTOP


33. EMPLOYEE BENEFITS LIABILITY COVERAGE

A. Description Of Employee Benefits Liability Coverage

1. This endorsement may be attached to the Commercial Liability Umbrella Coverage Form to provide coverage against claims for damages because of the insured's negligent acts, errors or omissions committed in the administration of an employee benefit program. The coverage under the endorsement is provided on a claims-made basis.

2. For details of coverage, refer to Employee Benefits Liability Coverage Endorsement CU 04 03.

B. Extended Reporting Period Option

1. This option is available if the Employee Benefits Liability Coverage Endorsement is cancelled or not renewed by the company or the company renews or replaces the endorsement with insurance that has a Retroactive Date later than the date shown in the Schedule of the endorsement or does not apply to a negligent act, error or omission on a claims-made basis. It provides for a five year extension for the reporting of claims for negligent acts, errors or omissions that were first committed before the end of the policy period but not before the Retroactive Date, if any, shown in the endorsement's Schedule. The Named Insured must request this endorsement in writing within 60 days after the end of the policy period.

2. If the Extended Reporting Period is purchased, use Extended Reporting Period Endorsement For Employee Benefits Liability Coverage CU 27 10.

3. Refer to company for rating the Extended Reporting Period.

4. If the Extended Reporting Period is in effect, an Extended Reporting Period Aggregate Limit will be provided, but only for claims first received and recorded during the Extended Reporting Period. The Extended Reporting Period Aggregate Limit will be equal to the Aggregate Limit entered on the Schedule of the Employee Benefits Liability Coverage Endorsement in effect at the end of the policy period.

C. Retroactive Date

The Retroactive Date is a specific date entered in the Schedule of the endorsement. Any negligent act, error or omission first committed prior to the Retroactive Date is not covered, even if a claim is first received and recorded during the policy period or any applicable Extended Reporting Period. Once a Retroactive Date is established for an insured, it should only be advanced if the Retroactive Date of the underlying insurance is advanced.

If there is underlying insurance, the Retroactive Date entered in the Schedule of this endorsement should be the Retroactive Date, if any, of the underlying insurance.

If "none" is entered in the Schedule of the endorsement, there is no Retroactive Date. If there is no Retroactive Date, coverage may be afforded for damages because of negligent acts, errors or omissions occurring prior to the inception date of the endorsement.

D. Company Rates

For rates, refer to company.


SECTION III - COMMERCIAL LIABILITY UMBRELLA RATING PROCEDURES

39. PREMIUM DETERMINATION

The following premium determination procedure may be used as a guideline for those risks rated on a refer-to-company basis in accordance with Rule 2. and/or Rule 14. It should be followed for all other risks.

A. For each coverage for which there is underlying insurance:

1. Determine the premium for such underlying coverage at limits equal to the retained limit. Adjust this amount by applicable surcharges and credits, including any applicable endorsement premium and/or credits. If underlying coverage is provided as a part of a program or rating plan where premium for liability exposure cannot be divided from nonliability exposure, the premium for the liability exposure should be calculated as if it was written on a separate basis.

2. Determine the premium for such underlying coverage at limits equal to the sum of the underlying limits and the umbrella limits. Adjust this amount by applicable surcharges and credits, including any applicable endorsement premium and/or credits.

3. Subtract the amount determined in Paragraph 1. from the amount determined in Paragraph 2. for each coverage.

4. For coverage subject to an underlying aggregate limit, multiply the sum determined in Paragraph 3. by a factor of 0.98 to reflect the common umbrella aggregate.

B. If there is no underlying coverage below the retained limit (self-insured retention) for any type of exposure where insured's loss potential is not negligible, estimate the premium to be charged for that exposure.

C. Add the umbrella coverage premiums determined above. This is the umbrella premium.

D. The following factors have not been reflected in the umbrella policy pricing procedures:

1. Reduction in loss variability due to layering of coverage between insurers.

2. Increase in costs due to ALAE spent by the umbrella writer.

3. Any package discount or modification.

Refer to company for further evaluation.

40. CLASSIFICATIONS

Classify in accordance with the classifications applicable to the underlying insurance.

41. TERRORISM PREMIUM DETERMINATION



SECTION IV - COMMERCIAL EXCESS LIABILITY COVERAGE RULES

SECTION IV - COMMERCIAL EXCESS LIABILITY COVERAGE RULES

50. DESCRIPTION OF EXCESS LIABILITY COVERAGE

Paragraph C.3. is replaced by the following:

3. Refer to mandatory state endorsement Florida Changes - Cancellation And Nonrenewal CX 02 09.

50. DESCRIPTION OF EXCESS LIABILITY COVERAGE

A. A standard coverage form is available to provide excess liability coverage for the ultimate net loss in excess of the retained limit for injury or damage, as defined in the policy.

B. The Excess Liability Coverage Part:

1. Provides higher limits of insurance over the available limits of controlling underlying insurance applicable to the claim.

2. Follows the provisions that are contained in the applicable controlling underlying insurance unless otherwise directed by the Excess Liability Coverage Part.

3. Does not provide broader coverage than that provided by the applicable controlling underlying insurance.

Controlling underlying insurance means any policy of insurance listed in the Declarations under the Schedule of controlling underlying insurance.

C. For details of coverage:

1. Refer to coverage form:

Commercial Excess Liability Coverage Form CX 00 01.

2. Refer to mandatory multistate endorsement:

Broad Form Nuclear Exclusion Endorsement CX 21 01.

3. Refer to mandatory state endorsements in the state exceptions.

D. The appropriate:

1. Coverage form;

2. Mandatory endorsements (including those required for use in a particular state);

3. Other applicable endorsements; and

4. Declarations

make up a Coverage Part.

51. UNDERLYING COVERAGE

Underlying coverage is to be maintained for all policies of insurance listed in the Schedule of controlling underlying insurance in the Declarations.

52. MINIMUM RETAINED LIMIT/MINIMUM UNDERLYING LIMIT

Retained limits are the minimum amounts of the limits of insurance of the controlling underlying insurance for exposures covered by controlling underlying insurance.

Refer to company for minimum retained limits.


A. Additional Optional Endorsements

The following endorsements may be used with the Commercial Excess Liability Coverage Part. The descriptions are for ease of identification. Refer to each endorsement to determine its content.

Refer to company for rating unless the underlying policy contains an equivalent endorsement and the "subject premium" used in calculating the excess policy premium contemplates attachment of the endorsement.

B. Exclusion Endorsements

Liability arising out of pollution not otherwise precluded by the pollution exclusion contained in the Excess Liability Coverage Form:

1. May be totally excluded by attaching Total Pollution Exclusion Endorsement CX 21 02;

2. May be totally excluded, with the exception of liability arising out of a hostile fire, by attaching Total Pollution Exclusion With A Hostile Fire Exception Endorsement CX 21 03; or

3. May be totally excluded, with the exception of liability arising out of building heating, cooling or dehumidifying equipment or a hostile fire, by attaching Total Pollution Exclusion With A Building Heating, Cooling And Dehumidifying Equipment Exception And A Hostile Fire Exception Endorsement CX 21 04.

C. Special Provisions For Certain Types Of Risks Endorsement

Excess liability coverage arising out of a specific operation where a consolidated (wrap-up) insurance program has been provided by the prime contractor/project manager or owner of the construction project in which the named insured is involved may be provided by attaching Excess Liability Coverage For Designated Operations Covered By A Consolidated (Wrap-up) Insurance Program Endorsement CX 04 01.

D. Coverage Amendment Endorsement

To provide a separate aggregate limit for damages because of injury or damage included in the products-completed operations hazard, use Products-Completed Operations Aggregate Limit Of Insurance Endorsement CX 24 01.

54. CONTROLLING UNDERLYING INSURANCE - CLAIMS-MADE COVERAGE

A. Coverage

Coverage under the Commercial Excess Liability Coverage Form assumes that any controlling underlying insurance is provided on an "occurrence" basis.

If any controlling underlying insurance provides coverage for any exposure that is on a claims-made basis, Underlying Claims-made Coverage Endorsement CX 27 00 must be attached to convert the excess coverage for those exposures to a claims-made basis.

B. Retroactive Date

The Retroactive Date is a specific date entered on the Schedule of Underlying Claims-made Coverage Endorsement CX 27 00. Endorsement CX 27 00 sets forth the application of the

Retroactive Date with respect to injury or damage covered under this Coverage Part. Once a Retroactive Date is established for an insured, it can only be advanced with the written consent of the first Named Insured, and then only:

1. If there is a change in carrier;

2. If there is a substantial change in the insured's operations which results in an increased exposure to loss;

3. If the insured fails to provide the company with information:

a. The insured knew or should have known about the nature of the risk insured which would have been material to the insurer's acceptance of the risk; or

b. Which was requested by the company;

4. If the Retroactive Date of the controlling underlying insurance is advanced; or

5. At the request of the insured.

Prior to the advancement of the Retroactive Date under any of these conditions, the company must obtain the written acknowledgment of the first Named Insured acknowledging that the first Named Insured has been advised of the right to purchase the Supplemental Extended Reporting Period endorsement.

If "none" is entered on the Schedule of Endorsement CX 27 00, there is no Retroactive Date. If there is no Retroactive Date, coverage may be afforded for injury or damage occurring prior to the inception date of the policy.

C. Extended Reporting Period

1. Any provisions under the controlling underlying insurance relating to an Extended Reporting Period for which a separate premium charge is made do not apply to the Excess Liability Coverage Part, unless an extended reporting period endorsement is purchased under this insurance.

2. If the circumstances relating to the termination, renewal or replacement of the claims-made coverage specified in Endorsement CX 27 00 are met, an extended reporting period will be made available provided that an extended reporting period endorsement has been purchased under the controlling underlying insurance.

If the Extended Reporting Period under this Coverage Part is purchased, use Extended Reporting Period Endorsement CX 27 01.


3. If the provisions of the Extended Reporting Period in any controlling underlying insurance provide for a supplemental aggregate limit of insurance when the Extended Reporting Period is purchased, a supplemental aggregate limit of insurance, equal to the Aggregate Limit shown in the Declarations of this Coverage Part, will apply to claims first made during the Extended Reporting Period if Endorsement CX 27 01 is attached.


The following is added to Rule 55.:

C. Excess Uninsured Motorists Insurance must be offered as part of the application for Excess Liability Coverage at limits at least equal to $1,000,000 or the bodily injury liability limits, whichever is less. Use Florida Excess Uninsured Motorists Coverage Endorsement CX 31 04.

For excess uninsured motorists coverage on a split limits basis, use Florida Split Excess Uninsured And Underinsured Motorists Coverage Limits Endorsement CX 31 03 and Florida Excess Uninsured Motorists Coverage Endorsement CX 31 04.


Some states require excess uninsured motorists coverage to be provided. Refer to state exceptions for:

A. Applicable excess uninsured and/or underinsured motorists coverage endorsements.

B. State requirements concerning the offering, providing and where applicable, rejection of uninsured and/or underinsured motorists coverage.


SECTION V - COMMERCIAL EXCESS LIABILITY RATING PROCEDURES

63. PREMIUM DETERMINATION

The following premium determination procedure may be used as a guideline for those risks rated on a refer-to-company basis in accordance with Rule 2. and/or Rule 14. It should be followed for all other risks.

A. For each coverage for which there is controlling underlying insurance:

1. Determine the premium for such underlying coverage at limits equal to the retained limit. Adjust this amount by applicable surcharges and credits, including any applicable endorsement premium and/or credits. If underlying coverage is provided as a part of a program or rating plan where premium for liability exposure cannot be divided from nonliability exposure, the premium for the liability exposure should be calculated as if it was written on a separate basis.

2. Determine the premium for such underlying coverage at limits equal to the sum of the underlying limits and the excess liability coverage limits. Adjust this amount by applicable surcharges and credits, including any applicable endorsement premium and/or credits.

3. Subtract the amount determined in Paragraph 1. from the amount determined in Paragraph 2. for each coverage.

4. For coverage subject to an underlying aggregate limit, multiply the sum determined in Paragraph 3. by a factor of 0.98 to reflect the common excess aggregate.

B. Add the excess liability coverage premiums determined. This is the excess liability coverage premium.

C. The following factors have not been reflected in the excess liability policy pricing procedures:

1. Reduction in loss variability due to layering of coverage between insurers.

2. Increase in costs due to ALAE spent by the excess liability writer.

3. Any package discount or modification.

Refer to company for further evaluation.

64. CLASSIFICATIONS

Classify in accordance with the classifications applicable to the controlling underlying insurance.

End of Section

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