HOMEOWNERS 3 SPECIAL FORM

HOMEOWNERS

HO 00 03 04 91

Page 1 of 18

HOMEOWNERS 3

SPECIAL FORM

AGREEMENT

We will provide the insurance described in this policy in return for the premium and compliance with all applica-

ble provisions of this policy.

DEFINITIONS

In this policy, "you" and "your" refer to the "named

insured" shown in the Declarations and the spouse if

a resident of the same household. "We," "us" and

"our" refer to the Company providing this insurance.

In addition, certain words and phrases are defined as

follows:

1. "Bodily injury" means bodily harm, sickness or

disease, including required care, loss of services

and death that results.

2. "Business" includes trade, profession or occupa-

tion.

3. "Insured" means you and residents of your house-

hold who are:

a. Your relatives; or

b. Other persons under the age of 21 and in the

care of any person named above.

Under Section II, "insured" also means:

c. With respect to animals or watercraft to which

this policy applies, any person or organization

legally responsible for these animals or water-

craft which are owned by you or any person

included in 3.a. or 3.b. above. A person or or-

ganization using or having custody of these

animals or watercraft in the course of any

"business" or without consent of the owner is

not an "insured";

d. With respect to any vehicle to which this policy

applies:

(1) Persons while engaged in your employ or

that of any person included in 3.a. or 3.b.

above; or

(2) Other persons using the vehicle on an

"insured location" with your consent.

4. "Insured location" means:

a. The "residence premises";

b. The part of other premises, other structures

and grounds used by you as a residence and:

(1) Which is shown in the Declarations; or

(2) Which is acquired by you during the policy

period for your use as a residence;

c. Any premises used by you in connection with a

premises in 4.a. and 4.b. above;

d. Any part of a premises:

(1) Not owned by an "insured"; and

(2) Where an "insured" is temporarily residing;

e. Vacant land, other than farm land, owned by or

rented to an "insured";

f. Land owned by or rented to an "insured" on

which a one or two family dwelling is being

built as a residence for an "insured";

g. Individual or family cemetery plots or burial

vaults of an "insured"; or

h. Any part of a premises occasionally rented to

an "insured" for other than "business" use.

5. "Occurrence" means an accident, including con-

tinuous or repeated exposure to substantially the

same general harmful conditions, which results,

during the policy period, in:

a. "Bodily injury"; or

b. "Property damage."

6. "Property damage" means physical injury to, de-

struction of, or loss of use of tangible property.

7. "Residence employee" means:

a. An employee of an "insured" whose duties are

related to the maintenance or use of the

"residence premises," including household or

domestic services; or

b. One who performs similar duties elsewhere not

related to the "business" of an "insured."

8. "Residence premises" means:

a. The one family dwelling, other structures, and

grounds; or

b. That part of any other building;

where you reside and which is shown as the

"residence premises" in the Declarations.

"Residence premises" also means a two family

dwelling where you reside in at least one of the

family units and which is shown as the "residence

premises" in the Declarations.

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HO 00 03 04 91

SECTION I – PROPERTY COVERAGES

COVERAGE A – Dwelling

We cover:

1. The dwelling on the "residence premises" shown

in the Declarations, including structures attached

to the dwelling; and

2. Materials and supplies located on or next to the

"residence premises" used to construct, alter or

repair the dwelling or other structures on the

"residence premises."

This coverage does not apply to land, including land

on which the dwelling is located.

COVERAGE B – Other Structures

We cover other structures on the "residence prem-

ises" set apart from the dwelling by clear space. This

includes structures connected to the dwelling by only

a fence, utility line, or similar connection.

This coverage does not apply to land, including land

on which the other structures are located.

We do not cover other structures:

1. Used in whole or in part for "business"; or

2. Rented or held for rental to any person not a ten-

ant of the dwelling, unless used solely as a private

garage.

The limit of liability for this coverage will not be more

than 10% of the limit of liability that applies to Cover-

age A. Use of this coverage does not reduce the

Coverage A limit of liability.

COVERAGE C – Personal Property

We cover personal property owned or used by an

"insured" while it is anywhere in the world. At your

request, we will cover personal property owned by:

1. Others while the property is on the part of the

"residence premises" occupied by an "insured";

2. A guest or a "residence employee," while the

property is in any residence occupied by an

"insured."

Our limit of liability for personal property usually

located at an "insured's" residence, other than the

"residence premises," is 10% of the limit of liability for

Coverage C, or $1000, whichever is greater. Personal

property in a newly acquired principal residence is not

subject to this limitation for the 30 days from the time

you begin to move the property there.

Special Limits of Liability. These limits do not in-

crease the Coverage C limit of liability. The special

limit for each numbered category below is the total

limit for each loss for all property in that category.

1. $200 on money, bank notes, bullion, gold other

than goldware, silver other than silverware, plati-

num, coins and medals.

2. $1000 on securities, accounts, deeds, evidences

of debt, letters of credit, notes other than bank

notes, manuscripts, personal records, passports,

tickets and stamps. This dollar limit applies to

these categories regardless of the medium (such

as paper or computer software) on which the ma-

terial exists.

This limit includes the cost to research, replace or

restore the information from the lost or damaged

material.

3. $1000 on watercraft, including their trailers, fur-

nishings, equipment and outboard engines or

motors.

4. $1000 on trailers not used with watercraft.

5. $1000 for loss by theft of jewelry, watches, furs,

precious and semi-precious stones.

6. $2000 for loss by theft of firearms.

7. $2500 for loss by theft of silverware, silver-plated

ware, goldware, gold-plated ware and pewterware.

This includes flatware, hollowware, tea sets, trays

and trophies made of or including silver, gold or

pewter.

8. $2500 on property, on the "residence premises,"

used at any time or in any manner for any

"business" purpose.

9. $250 on property, away from the "residence

premises," used at any time or in any manner for

any "business" purpose. However, this limit does

not apply to loss to adaptable electronic apparatus

as described in Special Limits 10. and 11. below.

10.$1000 for loss to electronic apparatus, while in or

upon a motor vehicle or other motorized land

conveyance, if the electronic apparatus is

equipped to be operated by power from the elec-

trical system of the vehicle or conveyance while

retaining its capability of being operated by other

sources of power. Electronic apparatus includes:

a. Accessories or antennas; or

b. Tapes, wires, records, discs or other media;

for use with any electronic apparatus.

HO 00 03 04 91

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11.$1000 for loss to electronic apparatus, while not in

or upon a motor vehicle or other motorized land

conveyance, if the electronic apparatus:

a. Is equipped to be operated by power from the

electrical system of the vehicle or conveyance

while retaining its capability of being operated

by other sources of power;

b. Is away from the "residence premises"; and

c. Is used at any time or in any manner for any

"business" purpose.

Electronic apparatus includes:

a. Accessories and antennas; or

b. Tapes, wires, records, discs or other media;

for use with any electronic apparatus.

Property Not Covered. We do not cover:

1. Articles separately described and specifically

insured in this or other insurance;

2. Animals, birds or fish;

3. Motor vehicles or all other motorized land con-

veyances. This includes:

a. Their equipment and accessories; or

b. Electronic apparatus that is designed to be

operated solely by use of the power from the

electrical system of motor vehicles or all other

motorized land conveyances. Electronic appa-

ratus includes:

(1) Accessories or antennas; or

(2) Tapes, wires, records, discs or other media;

for use with any electronic apparatus.

The exclusion of property described in 3.a.

and 3.b. above applies only while the property

is in or upon the vehicle or conveyance.

We do cover vehicles or conveyances not subject

to motor vehicle registration which are:

a. Used to service an "insured's" residence; or

b. Designed for assisting the handicapped;

4. Aircraft and parts. Aircraft means any contrivance

used or designed for flight, except model or hobby

aircraft not used or designed to carry people or

cargo;

5. Property of roomers, boarders and other tenants,

except property of roomers and boarders related

to an "insured";

6. Property in an apartment regularly rented or held

for rental to others by an "insured," except as

provided in Additional Coverages 10.;

7. Property rented or held for rental to others off the

"residence premises";

8. "Business" data, including such data stored in:

a. Books of account, drawings or other paper

records; or

b. Electronic data processing tapes, wires, rec-

ords, discs or other software media;

However, we do cover the cost of blank recording

or storage media, and of pre-recorded computer

programs available on the retail market; or

9. Credit cards or fund transfer cards except as

provided in Additional Coverages 6.

COVERAGE D – Loss Of Use

The limit of liability for Coverage D is the total limit

for all the coverages that follow.

1. If a loss covered under this Section makes that

part of the "residence premises" where you reside

not fit to live in, we cover, at your choice, either of

the following. However, if the "residence prem-

ises" is not your principal place of residence, we

will not provide the option under paragraph b. be-

low.

a. Additional Living Expense, meaning any

necessary increase in living expenses incurred

by you so that your household can maintain its

normal standard of living; or

b. Fair Rental Value, meaning the fair rental

value of that part of the "residence premises"

where you reside less any expenses that do

not continue while the premises is not fit to live

in.

Payment under a. or b. will be for the shortest

time required to repair or replace the damage or,

if you permanently relocate, the shortest time re-

quired for your household to settle elsewhere.

2. If a loss covered under this Section makes that

part of the "residence premises" rented to others

or held for rental by you not fit to live in, we cover

the:

Fair Rental Value, meaning the fair rental

value of that part of the "residence premises"

rented to others or held for rental by you less

any expenses that do not continue while the

premises is not fit to live in.

Payment will be for the shortest time required to

repair or replace that part of the premises rented

or held for rental.

3. If a civil authority prohibits you from use of the

"residence premises" as a result of direct damage

to neighboring premises by a Peril Insured Against

in this policy, we cover the Additional Living Ex-

pense and Fair Rental Value loss as provided un-

der 1. and 2. above for no more than two weeks.

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HO 00 03 04 91

The periods of time under 1., 2. and 3. above are not

limited by expiration of this policy.

We do not cover loss or expense due to cancellation

of a lease or agreement.

ADDITIONAL COVERAGES

1. Debris Removal. We will pay your reasonable

expense for the removal of:

a. Debris of covered property if a Peril Insured

Against that applies to the damaged property

causes the loss; or

b. Ash, dust or particles from a volcanic eruption

that has caused direct loss to a building or

property contained in a building.

This expense is included in the limit of liability that

applies to the damaged property. If the amount to

be paid for the actual damage to the property plus

the debris removal expense is more than the limit

of liability for the damaged property, an additional

5% of that limit of liability is available for debris

removal expense.

We will also pay your reasonable expense, up to

$500, for the removal from the "residence prem-

ises" of:

a. Your tree(s) felled by the peril of Windstorm or

Hail;

b. Your tree(s) felled by the peril of Weight of Ice,

Snow or Sleet; or

c. A neighbor's tree(s) felled by a Peril Insured

Against under Coverage C;

provided the tree(s) damages a covered structure.

The $500 limit is the most we will pay in any one

loss regardless of the number of fallen trees.

2. Reasonable Repairs. In the event that covered

property is damaged by an applicable Peril In-

sured Against, we will pay the reasonable cost in-

curred by you for necessary measures taken

solely to protect against further damage. If the

measures taken involve repair to other damaged

property, we will pay for those measures only if

that property is covered under this policy and the

damage to that property is caused by an applica-

ble Peril Insured Against.

This coverage:

a. Does not increase the limit of liability that

applies to the covered property;

b. Does not relieve you of your duties, in case of

a loss to covered property, as set forth in

SECTION I – CONDITION 2.d.

3. Trees, Shrubs and Other Plants. We cover

trees, shrubs, plants or lawns, on the "residence

premises," for loss caused by the following Perils

Insured Against: Fire or lightning, Explosion, Riot

or civil commotion, Aircraft, Vehicles not owned or

operated by a resident of the "residence prem-

ises," Vandalism or malicious mischief or Theft.

We will pay up to 5% of the limit of liability that

applies to the dwelling for all trees, shrubs, plants

or lawns. No more than $500 of this limit will be

available for any one tree, shrub or plant. We do

not cover property grown for "business" purposes.

This coverage is additional insurance.

4. Fire Department Service Charge. We will pay up

to $500 for your liability assumed by contract or

agreement for fire department charges incurred

when the fire department is called to save or pro-

tect covered property from a Peril Insured

Against. We do not cover fire department service

charges if the property is located within the limits

of the city, municipality or protection district fur-

nishing the fire department response.

This coverage is additional insurance. No de-

ductible applies to this coverage.

5. Property Removed. We insure covered property

against direct loss from any cause while being

removed from a premises endangered by a Peril

Insured Against and for no more than 30 days

while removed. This coverage does not change

the limit of liability that applies to the property be-

ing removed.

6. Credit Card, Fund Transfer Card, Forgery and

Counterfeit Money.

We will pay up to $500 for:

a. The legal obligation of an "insured" to pay

because of the theft or unauthorized use of

credit cards issued to or registered in an

"insured's" name;

b. Loss resulting from theft or unauthorized use

of a fund transfer card used for deposit, with-

drawal or transfer of funds, issued to or regis-

tered in an "insured's" name;

c. Loss to an "insured" caused by forgery or al-

teration of any check or negotiable instrument;

and

d. Loss to an "insured" through acceptance in

good faith of counterfeit United States or Ca-

nadian paper currency.

HO 00 03 04 91

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We do not cover use of a credit card or fund

transfer card:

a. By a resident of your household;

b. By a person who has been entrusted with ei-

ther type of card; or

c. If an "insured" has not complied with all terms

and conditions under which the cards are is-

sued.

All loss resulting from a series of acts committed

by any one person or in which any one person is

concerned or implicated is considered to be one

loss.

We do not cover loss arising out of "business" use

or dishonesty of an "insured."

This coverage is additional insurance. No de-

ductible applies to this coverage.

Defense:

a. We may investigate and settle any claim or

suit that we decide is appropriate. Our duty to

defend a claim or suit ends when the amount

we pay for the loss equals our limit of liability.

b. If a suit is brought against an "insured" for

liability under the Credit Card or Fund Transfer

Card coverage, we will provide a defense at

our expense by counsel of our choice.

c. We have the option to defend at our expense

an "insured" or an "insured's" bank against any

suit for the enforcement of payment under the

Forgery coverage.

7. Loss Assessment. We will pay up to $1000 for

your share of loss assessment charged during the

policy period against you by a corporation or as-

sociation of property owners, when the assess-

ment is made as a result of direct loss to the

property, owned by all members collectively,

caused by a Peril Insured Against under

COVERAGE A – DWELLING, other than earth-

quake or land shock waves or tremors before,

during or after a volcanic eruption.

This coverage applies only to loss assessments

charged against you as owner or tenant of the

"residence premises."

We do not cover loss assessments charged

against you or a corporation or association of

property owners by any governmental body.

The limit of $1000 is the most we will pay with re-

spect to any one loss, regardless of the number of

assessments.

Condition 1. Policy Period, under SECTIONS I

AND II CONDITIONS, does not apply to this cov-

erage.

8. Collapse. We insure for direct physical loss to

covered property involving collapse of a building

or any part of a building caused only by one or

more of the following:

a. Perils Insured Against in COVERAGE C –

PERSONAL PROPERTY. These perils apply

to covered buildings and personal property for

loss insured by this additional coverage;

b. Hidden decay;

c. Hidden insect or vermin damage;

d. Weight of contents, equipment, animals or

people;

e. Weight of rain which collects on a roof; or

f. Use of defective material or methods in con-

struction, remodeling or renovation if the col-

lapse occurs during the course of the con-

struction, remodeling or renovation.

Loss to an awning, fence, patio, pavement,

swimming pool, underground pipe, flue, drain,

cesspool, septic tank, foundation, retaining wall,

bulkhead, pier, wharf or dock is not included under

items b., c., d., e., and f. unless the loss is a di-

rect result of the collapse of a building.

Collapse does not include settling, cracking,

shrinking, bulging or expansion.

This coverage does not increase the limit of liabil-

ity applying to the damaged covered property.

9. Glass or Safety Glazing Material.

We cover:

a. The breakage of glass or safety glazing mate-

rial which is part of a covered building, storm

door or storm window; and

b. Damage to covered property by glass or safety

glazing material which is part of a building,

storm door or storm window.

This coverage does not include loss on the

"residence premises" if the dwelling has been va-

cant for more than 30 consecutive days immedi-

ately before the loss. A dwelling being constructed

is not considered vacant.

Loss for damage to glass will be settled on the

basis of replacement with safety glazing materials

when required by ordinance or law.

This coverage does not increase the limit of liabil-

ity that applies to the damaged property.

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HO 00 03 04 91

10.Landlord's Furnishings. We will pay up to

$2500 for your appliances, carpeting and other

household furnishings, in an apartment on the

"residence premises" regularly rented or held for

rental to others by an "insured," for loss caused

only by the following Perils Insured Against:

a. Fire or lightning.

b. Windstorm or hail.

This peril does not include loss to the property

contained in a building caused by rain, snow,

sleet, sand or dust unless the direct force of

wind or hail damages the building causing an

opening in a roof or wall and the rain, snow,

sleet, sand or dust enters through this opening.

This peril includes loss to watercraft and their

trailers, furnishings, equipment, and outboard

engines or motors, only while inside a fully

enclosed building.

c. Explosion.

d. Riot or civil commotion.

e. Aircraft, including self-propelled missiles and

spacecraft.

f. Vehicles.

g. Smoke, meaning sudden and accidental dam-

age from smoke.

This peril does not include loss caused by

smoke from agricultural smudging or industrial

operations.

h. Vandalism or malicious mischief.

i. Falling objects.

This peril does not include loss to property

contained in a building unless the roof or an

outside wall of the building is first damaged by

a falling object. Damage to the falling object it-

self is not included.

j. Weight of ice, snow or sleet which causes

damage to property contained in a building.

k. Accidental discharge or overflow of water

or steam from within a plumbing, heating, air

conditioning or automatic fire protective sprin-

kler system or from within a household appli-

ance.

This peril does not include loss:

(1) To the system or appliance from which the

water or steam escaped;

(2) Caused by or resulting from freezing ex-

cept as provided in the peril of freezing

below; or

(3) On the "residence premises" caused by

accidental discharge or overflow which oc-

curs off the "residence premises."

In this peril, a plumbing system does not in-

clude a sump, sump pump or related equip-

ment.

l. Sudden and accidental tearing apart,

cracking, burning or bulging of a steam or

hot water heating system, an air conditioning

or automatic fire protective sprinkler system, or

an appliance for heating water.

We do not cover loss caused by or resulting

from freezing under this peril.

m. Freezing of a plumbing, heating, air condition-

ing or automatic fire protective sprinkler sys-

tem or of a household appliance.

This peril does not include loss on the

"residence premises" while the dwelling is un-

occupied, unless you have used reasonable

care to:

(1) Maintain heat in the building; or

(2) Shut off the water supply and drain the

system and appliances of water.

n. Sudden and accidental damage from

artificially generated electrical current.

This peril does not include loss to a tube, tran-

sistor or similar electronic component.

o. Volcanic eruption other than loss caused by

earthquake, land shock waves or tremors.

The $2500 limit is the most we will pay in any one

loss regardless of the number of appliances, car-

peting or other household furnishings involved in

the loss.

SECTION I – PERILS INSURED AGAINST

COVERAGE A – DWELLING and COVERAGE B –

OTHER STRUCTURES

We insure against risk of direct loss to property de-

scribed in Coverages A and B only if that loss is a

physical loss to property. We do not insure, however,

for loss:

1. Involving collapse, other than as provided in Ad-

ditional Coverage 8.;

2. Caused by:

HO 00 03 04 91

Page 7 of 18

a. Freezing of a plumbing, heating, air condition-

ing or automatic fire protective sprinkler sys-

tem or of a household appliance, or by dis-

charge, leakage or overflow from within the

system or appliance caused by freezing. This

exclusion applies only while the dwelling is va-

cant, unoccupied or being constructed, unless

you have used reasonable care to:

(1) Maintain heat in the building; or

(2) Shut off the water supply and drain the

system and appliances of water;

b. Freezing, thawing, pressure or weight of water

or ice, whether driven by wind or not, to a:

(1) Fence, pavement, patio or swimming pool;

(2) Foundation, retaining wall, or bulkhead; or

(3) Pier, wharf or dock;

c. Theft in or to a dwelling under construction, or

of materials and supplies for use in the con-

struction until the dwelling is finished and oc-

cupied;

d. Vandalism and malicious mischief if the

dwelling has been vacant for more than 30

consecutive days immediately before the loss.

A dwelling being constructed is not considered

vacant;

e. Any of the following:

(1) Wear and tear, marring, deterioration;

(2) Inherent vice, latent defect, mechanical

breakdown;

(3) Smog, rust or other corrosion, mold, wet or

dry rot;

(4) Smoke from agricultural smudging or indus-

trial operations;

(5) Discharge, dispersal, seepage, migration,

release or escape of pollutants unless the

discharge, dispersal, seepage, migration,

release or escape is itself caused by a Peril

Insured Against under Coverage C of this

policy.

Pollutants means any solid, liquid, gaseous

or thermal irritant or contaminant, including

smoke, vapor, soot, fumes, acids, alkalis,

chemicals and waste. Waste includes ma-

terials to be recycled, reconditioned or re-

claimed;

(6) Settling, shrinking, bulging or expansion,

including resultant cracking, of pavements,

patios, foundations, walls, floors, roofs or

ceilings;

(7) Birds, vermin, rodents, or insects; or

(8) Animals owned or kept by an "insured."

If any of these cause water damage not oth-

erwise excluded, from a plumbing, heating, air

conditioning or automatic fire protective sprin-

kler system or household appliance, we cover

loss caused by the water including the cost of

tearing out and replacing any part of a building

necessary to repair the system or appliance.

We do not cover loss to the system or appli-

ance from which this water escaped.

3. Excluded under Section I – Exclusions.

Under items 1. and 2., any ensuing loss to property

described in Coverages A and B not excluded or

excepted in this policy is covered.

COVERAGE C – PERSONAL PROPERTY

We insure for direct physical loss to the property

described in Coverage C caused by a peril listed

below unless the loss is excluded in SECTION I –

EXCLUSIONS.

1. Fire or lightning.

2. Windstorm or hail.

This peril does not include loss to the property

contained in a building caused by rain, snow,

sleet, sand or dust unless the direct force of wind

or hail damages the building causing an opening

in a roof or wall and the rain, snow, sleet, sand or

dust enters through this opening.

This peril includes loss to watercraft and their

trailers, furnishings, equipment, and outboard en-

gines or motors, only while inside a fully enclosed

building.

3. Explosion.

4. Riot or civil commotion.

5. Aircraft, including self-propelled missiles and

spacecraft.

6. Vehicles.

7. Smoke, meaning sudden and accidental damage

from smoke.

This peril does not include loss caused by smoke

from agricultural smudging or industrial opera-

tions.

8. Vandalism or malicious mischief.

9. Theft, including attempted theft and loss of prop-

erty from a known place when it is likely that the

property has been stolen.

This peril does not include loss caused by theft:

a. Committed by an "insured";

b. In or to a dwelling under construction, or of

materials and supplies for use in the construc-

tion until the dwelling is finished and occupied;

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HO 00 03 04 91

c. From that part of a "residence premises"

rented by an "insured" to other than an

"insured."

This peril does not include loss caused by theft

that occurs off the "residence premises" of:

a. Property while at any other residence owned

by, rented to, or occupied by an "insured," ex-

cept while an "insured" is temporarily living

there. Property of a student who is an "insured"

is covered while at a residence away from

home if the student has been there at any time

during the 45 days immediately before the

loss;

b. Watercraft, and their furnishings, equipment

and outboard engines or motors; or

c. Trailers and campers.

10.Falling objects.

This peril does not include loss to property con-

tained in a building unless the roof or an outside

wall of the building is first damaged by a falling

object. Damage to the falling object itself is not

included.

11.Weight of ice, snow or sleet which causes dam-

age to property contained in a building.

12.Accidental discharge or overflow of water or

steam from within a plumbing, heating, air condi-

tioning or automatic fire protective sprinkler sys-

tem or from within a household appliance.

This peril does not include loss:

a. To the system or appliance from which the

water or steam escaped;

b. Caused by or resulting from freezing except as

provided in the peril of freezing below; or

c. On the "residence premises" caused by acci-

dental discharge or overflow which occurs off

the "residence premises."

In this peril, a plumbing system does not include a

sump, sump pump or related equipment.

13.Sudden and accidental tearing apart, cracking,

burning or bulging of a steam or hot water

heating system, an air conditioning or automatic

fire protective sprinkler system, or an appliance

for heating water.

We do not cover loss caused by or resulting from

freezing under this peril.

14.Freezing of a plumbing, heating, air conditioning

or automatic fire protective sprinkler system or of

a household appliance.

This peril does not include loss on the "residence

premises" while the dwelling is unoccupied, unless

you have used reasonable care to:

a. Maintain heat in the building; or

b. Shut off the water supply and drain the system

and appliances of water.

15.Sudden and accidental damage from

artificially generated electrical current.

This peril does not include loss to a tube, transis-

tor or similar electronic component.

16.Volcanic eruption other than loss caused by

earthquake, land shock waves or tremors.

SECTION I – EXCLUSIONS

1. We do not insure for loss caused directly or indi-

rectly by any of the following. Such loss is ex-

cluded regardless of any other cause or event

contributing concurrently or in any sequence to

the loss.

a. Ordinance or Law, meaning enforcement of

any ordinance or law regulating the construc-

tion, repair, or demolition of a building or other

structure, unless specifically provided under

this policy.

b. Earth Movement, meaning earthquake includ-

ing land shock waves or tremors before, during

or after a volcanic eruption; landslide; mine

subsidence; mudflow; earth sinking, rising or

shifting; unless direct loss by:

(1) Fire;

(2) Explosion; or

(3) Breakage of glass or safety glazing mate-

rial which is part of a building, storm door

or storm window;

ensues and then we will pay only for the ensu-

ing loss.

This exclusion does not apply to loss by theft.

c. Water Damage, meaning:

(1) Flood, surface water, waves, tidal water,

overflow of a body of water, or spray from

any of these, whether or not driven by wind;

(2) Water which backs up through sewers or

drains or which overflows from a sump; or

HO 00 03 04 91

Page 9 of 18

(3) Water below the surface of the ground,

including water which exerts pressure on or

seeps or leaks through a building, sidewalk,

driveway, foundation, swimming pool or

other structure.

Direct loss by fire, explosion or theft resulting

from water damage is covered.

d. Power Failure, meaning the failure of power

or other utility service if the failure takes place

off the "residence premises." But, if a Peril In-

sured Against ensues on the "residence prem-

ises," we will pay only for that ensuing loss.

e. Neglect, meaning neglect of the "insured" to

use all reasonable means to save and pre-

serve property at and after the time of a loss.

f. War, including the following and any conse-

quence of any of the following:

(1) Undeclared war, civil war, insurrection,

rebellion or revolution;

(2) Warlike act by a military force or military

personnel; or

(3) Destruction, seizure or use for a military

purpose.

Discharge of a nuclear weapon will be deemed

a warlike act even if accidental.

g. Nuclear Hazard, to the extent set forth in the

Nuclear Hazard Clause of SECTION I –

CONDITIONS.

h. Intentional Loss, meaning any loss arising

out of any act committed:

(1) By or at the direction of an "insured"; and

(2) With the intent to cause a loss.

2. We do not insure for loss to property described in

Coverages A and B caused by any of the follow-

ing. However, any ensuing loss to property de-

scribed in Coverages A and B not excluded or ex-

cepted in this policy is covered.

a. Weather conditions. However, this exclusion

only applies if weather conditions contribute in

any way with a cause or event excluded in

paragraph 1. above to produce the loss;

b. Acts or decisions, including the failure to act

or decide, of any person, group, organization

or governmental body;

c. Faulty, inadequate or defective:

(1) Planning, zoning, development, surveying,

siting;

(2) Design, specifications, workmanship, re-

pair, construction, renovation, remodeling,

grading, compaction;

(3) Materials used in repair, construction,

renovation or remodeling; or

(4) Maintenance;

of part or all of any property whether on or off

the "residence premises."

SECTION I – CONDITIONS

1. Insurable Interest and Limit of Liability. Even if

more than one person has an insurable interest in

the property covered, we will not be liable in any

one loss:

a. To the "insured" for more than the amount of

the "insured's" interest at the time of loss; or

b. For more than the applicable limit of liability.

2. Your Duties After Loss. In case of a loss to

covered property, you must see that the following

are done:

a. Give prompt notice to us or our agent;

b. Notify the police in case of loss by theft;

c. Notify the credit card or fund transfer card

company in case of loss under Credit Card or

Fund Transfer Card coverage;

d. Protect the property from further damage. If

repairs to the property are required, you must:

(1) Make reasonable and necessary repairs to

protect the property; and

(2) Keep an accurate record of repair ex-

penses;

e. Prepare an inventory of damaged personal

property showing the quantity, description, ac-

tual cash value and amount of loss. Attach all

bills, receipts and related documents that jus-

tify the figures in the inventory;

f. As often as we reasonably require:

(1) Show the damaged property;

(2) Provide us with records and documents we

request and permit us to make copies; and

(3) Submit to examination under oath, while

not in the presence of any other "insured,"

and sign the same;

Page 10 of 18

HO 00 03 04 91

g. Send to us, within 60 days after our request,

your signed, sworn proof of loss which sets

forth, to the best of your knowledge and belief:

(1) The time and cause of loss;

(2) The interest of the "insured" and all others

in the property involved and all liens on the

property;

(3) Other insurance which may cover the loss;

(4) Changes in title or occupancy of the prop-

erty during the term of the policy;

(5) Specifications of damaged buildings and

detailed repair estimates;

(6) The inventory of damaged personal prop-

erty described in 2.e. above;

(7) Receipts for additional living expenses

incurred and records that support the fair

rental value loss; and

(8) Evidence or affidavit that supports a claim

under the Credit Card, Fund Transfer Card,

Forgery and Counterfeit Money coverage,

stating the amount and cause of loss.

3. Loss Settlement. Covered property losses are

settled as follows:

a. Property of the following types:

(1) Personal property;

(2) Awnings, carpeting, household appliances,

outdoor antennas and outdoor equipment,

whether or not attached to buildings; and

(3) Structures that are not buildings;

at actual cash value at the time of loss but not

more than the amount required to repair or re-

place.

b. Buildings under Coverage A or B at replace-

ment cost without deduction for depreciation,

subject to the following:

(1) If, at the time of loss, the amount of insur-

ance in this policy on the damaged building

is 80% or more of the full replacement cost

of the building immediately before the loss,

we will pay the cost to repair or replace,

after application of deductible and without

deduction for depreciation, but not more

than the least of the following amounts:

(a) The limit of liability under this policy that

applies to the building;

(b) The replacement cost of that part of the

building damaged for like construction

and use on the same premises; or

repair or replace the damaged building.

(2) If, at the time of loss, the amount of insur-

ance in this policy on the damaged building

is less than 80% of the full replacement

cost of the building immediately before the

loss, we will pay the greater of the following

amounts, but not more than the limit of li-

ability under this policy that applies to the

building:

(a) The actual cash value of that part of the

building damaged; or

(b) That proportion of the cost to repair or

replace, after application of deductible

and without deduction for depreciation,

that part of the building damaged, which

the total amount of insurance in this

policy on the damaged building bears to

80% of the replacement cost of the

building.

(3) To determine the amount of insurance

required to equal 80% of the full replace-

ment cost of the building immediately be-

fore the loss, do not include the value of:

(a) Excavations, foundations, piers or any

supports which are below the undersur-

face of the lowest basement floor;

(b) Those supports in (a) above which are

below the surface of the ground inside

the foundation walls, if there is no

basement; and

drains.

(4) We will pay no more than the actual cash

value of the damage until actual repair or

replacement is complete. Once actual re-

pair or replacement is complete, we will

settle the loss according to the provisions

of b.(1) and b.(2) above.

However, if the cost to repair or replace the

damage is both:

(a) Less than 5% of the amount of insur-

ance in this policy on the building; and

(b) Less than $2500;

we will settle the loss according to the pro-

visions of b.(1) and b.(2) above whether or

not actual repair or replacement is com-

plete.

HO 00 03 04 91

Page 11 of 18

(5) You may disregard the replacement cost

loss settlement provisions and make claim

under this policy for loss or damage to

buildings on an actual cash value basis.

You may then make claim within 180 days

after loss for any additional liability accord-

ing to the provisions of this Condition 3.

Loss Settlement.

4. Loss to a Pair or Set. In case of loss to a pair or

set we may elect to:

a. Repair or replace any part to restore the pair or

set to its value before the loss; or

b. Pay the difference between actual cash value

of the property before and after the loss.

5. Glass Replacement. Loss for damage to glass

caused by a Peril Insured Against will be settled

on the basis of replacement with safety glazing

materials when required by ordinance or law.

6. Appraisal. If you and we fail to agree on the

amount of loss, either may demand an appraisal

of the loss. In this event, each party will choose a

competent appraiser within 20 days after receiving

a written request from the other. The two apprais-

ers will choose an umpire. If they cannot agree

upon an umpire within 15 days, you or we may re-

quest that the choice be made by a judge of a

court of record in the state where the "residence

premises" is located. The appraisers will sepa-

rately set the amount of loss. If the appraisers

submit a written report of an agreement to us, the

amount agreed upon will be the amount of loss. If

they fail to agree, they will submit their differences

to the umpire. A decision agreed to by any two will

set the amount of loss.

Each party will:

a. Pay its own appraiser; and

b. Bear the other expenses of the appraisal and

umpire equally.

7. Other Insurance. If a loss covered by this policy

is also covered by other insurance, we will pay

only the proportion of the loss that the limit of li-

ability that applies under this policy bears to the

total amount of insurance covering the loss.

8. Suit Against Us. No action can be brought unless

the policy provisions have been complied with and

the action is started within one year after the date

of loss.

9. Our Option. If we give you written notice within

30 days after we receive your signed, sworn proof

of loss, we may repair or replace any part of the

damaged property with like property.

10.Loss Payment. We will adjust all losses with you.

We will pay you unless some other person is

named in the policy or is legally entitled to receive

payment. Loss will be payable 60 days after we

receive your proof of loss and:

a. Reach an agreement with you;

b. There is an entry of a final judgment; or

c. There is a filing of an appraisal award with us.

11.Abandonment of Property. We need not accept

any property abandoned by an "insured."

12.Mortgage Clause.

The word "mortgagee" includes trustee.

If a mortgagee is named in this policy, any loss

payable under Coverage A or B will be paid to the

mortgagee and you, as interests appear. If more

than one mortgagee is named, the order of pay-

ment will be the same as the order of precedence

of the mortgages.

If we deny your claim, that denial will not apply to

a valid claim of the mortgagee, if the mortgagee:

a. Notifies us of any change in ownership, occu-

pancy or substantial change in risk of which

the mortgagee is aware;

b. Pays any premium due under this policy on

demand if you have neglected to pay the

premium; and

c. Submits a signed, sworn statement of loss

within 60 days after receiving notice from us of

your failure to do so. Policy conditions relating

to Appraisal, Suit Against Us and Loss Pay-

ment apply to the mortgagee.

If we decide to cancel or not to renew this policy,

the mortgagee will be notified at least 10 days

before the date cancellation or nonrenewal takes

effect.

If we pay the mortgagee for any loss and deny

payment to you:

a. We are subrogated to all the rights of the

mortgagee granted under the mortgage on the

property; or

b. At our option, we may pay to the mortgagee

the whole principal on the mortgage plus any

accrued interest. In this event, we will receive

a full assignment and transfer of the mortgage

and all securities held as collateral to the

mortgage debt.

Subrogation will not impair the right of the mort-

gagee to recover the full amount of the mortga-

gee's claim.

Page 12 of 18

HO 00 03 04 91

13.No Benefit to Bailee. We will not recognize any

assignment or grant any coverage that benefits a

person or organization holding, storing or moving

property for a fee regardless of any other provi-

sion of this policy.

14.Nuclear Hazard Clause.

a. "Nuclear Hazard" means any nuclear reaction,

radiation, or radioactive contamination, all

whether controlled or uncontrolled or however

caused, or any consequence of any of these.

b. Loss caused by the nuclear hazard will not be

considered loss caused by fire, explosion, or

smoke, whether these perils are specifically

named in or otherwise included within the Per-

ils Insured Against in Section I.

c. This policy does not apply under Section I to

loss caused directly or indirectly by nuclear

hazard, except that direct loss by fire resulting

from the nuclear hazard is covered.

15.Recovered Property. If you or we recover any

property for which we have made payment under

this policy, you or we will notify the other of the

recovery. At your option, the property will be re-

turned to or retained by you or it will become our

property. If the recovered property is returned to

or retained by you, the loss payment will be ad-

justed based on the amount you received for the

recovered property.

16.Volcanic Eruption Period. One or more volcanic

eruptions that occur within a 72-hour period will be

considered as one volcanic eruption.

SECTION II – LIABILITY COVERAGES

COVERAGE E – Personal Liability

If a claim is made or a suit is brought against an

"insured" for damages because of "bodily injury" or

"property damage" caused by an "occurrence" to

which this coverage applies, we will:

1. Pay up to our limit of liability for the damages for

which the "insured" is legally liable. Damages in-

clude prejudgment interest awarded against the

"insured"; and

2. Provide a defense at our expense by counsel of

our choice, even if the suit is groundless, false or

fraudulent. We may investigate and settle any

claim or suit that we decide is appropriate. Our

duty to settle or defend ends when the amount we

pay for damages resulting from the "occurrence"

equals our limit of liability.

COVERAGE F – Medical Payments To Others

We will pay the necessary medical expenses that are

incurred or medically ascertained within three years

from the date of an accident causing "bodily injury."

Medical expenses means reasonable charges for

medical, surgical, x-ray, dental, ambulance, hospital,

professional nursing, prosthetic devices and funeral

services. This coverage does not apply to you or

regular residents of your household except "residence

employees." As to others, this coverage applies only:

1. To a person on the "insured location" with the

permission of an "insured"; or

2. To a person off the "insured location," if the

"bodily injury":

a. Arises out of a condition on the "insured loca-

tion" or the ways immediately adjoining;

b. Is caused by the activities of an "insured";

c. Is caused by a "residence employee" in the

course of the "residence employee's" employ-

ment by an "insured"; or

d. Is caused by an animal owned by or in the care

of an "insured."

SECTION II – EXCLUSIONS

1. Coverage E – Personal Liability and Coverage

F – Medical Payments to Others do not apply to

"bodily injury" or "property damage":

a. Which is expected or intended by the

"insured";

b. Arising out of or in connection with a

"business" engaged in by an "insured." This

exclusion applies but is not limited to an act or

omission, regardless of its nature or circum-

stance, involving a service or duty rendered,

promised, owed, or implied to be provided be-

cause of the nature of the "business";

HO 00 03 04 91

Page 13 of 18

c. Arising out of the rental or holding for rental of

any part of any premises by an "insured." This

exclusion does not apply to the rental or hold-

ing for rental of an "insured location":

(1) On an occasional basis if used only as a

residence;

(2) In part for use only as a residence, unless a

single family unit is intended for use by the

occupying family to lodge more than two

roomers or boarders; or

(3) In part, as an office, school, studio or pri-

vate garage;

d. Arising out of the rendering of or failure to

render professional services;

e. Arising out of a premises:

(1) Owned by an "insured";

(2) Rented to an "insured"; or

(3) Rented to others by an "insured";

that is not an "insured location";

f. Arising out of:

(1) The ownership, maintenance, use, loading

or unloading of motor vehicles or all other

motorized land conveyances, including

trailers, owned or operated by or rented or

loaned to an "insured";

(2) The entrustment by an "insured" of a motor

vehicle or any other motorized land con-

veyance to any person; or

(3) Vicarious liability, whether or not statutorily

imposed, for the actions of a child or minor

using a conveyance excluded in paragraph

(1) or (2) above.

This exclusion does not apply to:

(1) A trailer not towed by or carried on a motor-

ized land conveyance.

(2) A motorized land conveyance designed for

recreational use off public roads, not sub-

ject to motor vehicle registration and:

(a) Not owned by an "insured"; or

(b) Owned by an "insured" and on an

"insured location";

(3) A motorized golf cart when used to play

golf on a golf course;

(4) A vehicle or conveyance not subject to

motor vehicle registration which is:

(a) Used to service an "insured's" resi-

dence;

(b) Designed for assisting the handicapped;

tion";

g. Arising out of:

(1) The ownership, maintenance, use, loading

or unloading of an excluded watercraft de-

scribed below;

(2) The entrustment by an "insured" of an

excluded watercraft described below to any

person; or

(3) Vicarious liability, whether or not statutorily

imposed, for the actions of a child or minor

using an excluded watercraft described

below.

Excluded watercraft are those that are princi-

pally designed to be propelled by engine power

or electric motor, or are sailing vessels,

whether owned by or rented to an "insured."

This exclusion does not apply to watercraft:

(1) That are not sailing vessels and are pow-

ered by:

(a) Inboard or inboard-outdrive engine or

motor power of 50 horsepower or less

not owned by an "insured";

(b) Inboard or inboard-outdrive engine or

motor power of more than 50 horse-

power not owned by or rented to an

"insured";

tors with 25 total horsepower or less;

(d) One or more outboard engines or mo-

tors with more than 25 total horsepower

if the outboard engine or motor is not

owned by an "insured";

(e) Outboard engines or motors of more

than 25 total horsepower owned by an

"insured" if:

(i) You acquire them prior to the policy

period; and

(a) You declare them at policy in-

ception; or

(b) Your intention to insure is re-

ported to us in writing within 45

days after you acquire the out-

board engines or motors.

(ii) You acquire them during the policy

period.

This coverage applies for the policy pe-

riod.

(2) That are sailing vessels, with or without

auxiliary power:

(a) Less than 26 feet in overall length;

(b) 26 feet or more in overall length, not

owned by or rented to an "insured."

Page 14 of 18

HO 00 03 04 91

(3) That are stored;

h. Arising out of:

(1) The ownership, maintenance, use, loading

or unloading of an aircraft;

(2) The entrustment by an "insured" of an

aircraft to any person; or

(3) Vicarious liability, whether or not statutorily

imposed, for the actions of a child or minor

using an aircraft.

An aircraft means any contrivance used or de-

signed for flight, except model or hobby air-

craft not used or designed to carry people or

cargo;

i. Caused directly or indirectly by war, including

the following and any consequence of any of

the following:

(1) Undeclared war, civil war, insurrection,

rebellion or revolution;

(2) Warlike act by a military force or military

personnel; or

(3) Destruction, seizure or use for a military

purpose.

Discharge of a nuclear weapon will be deemed

a warlike act even if accidental;

j. Which arises out of the transmission of a

communicable disease by an "insured";

k. Arising out of sexual molestation, corporal

punishment or physical or mental abuse; or

l. Arising out of the use, sale, manufacture,

delivery, transfer or possession by any person

of a Controlled Substance(s) as defined by the

Federal Food and Drug Law at 21 U.S.C.A.

Sections 811 and 812. Controlled Substances

include but are not limited to cocaine, LSD,

marijuana and all narcotic drugs. However, this

exclusion does not apply to the legitimate use

of prescription drugs by a person following the

orders of a licensed physician.

Exclusions e., f., g., and h. do not apply to "bodily

injury" to a "residence employee" arising out of

and in the course of the "residence employee's"

employment by an "insured."

2. Coverage E – Personal Liability, does not apply

to:

a. Liability:

(1) For any loss assessment charged against

you as a member of an association, corpo-

ration or community of property owners;

(2) Under any contract or agreement. How-

ever, this exclusion does not apply to writ-

ten contracts:

(a) That directly relate to the ownership,

maintenance or use of an "insured loca-

tion"; or

(b) Where the liability of others is assumed

by the "insured" prior to an

"occurrence";

unless excluded in (1) above or elsewhere

in this policy;

b. "Property damage" to property owned by the

"insured";

c. "Property damage" to property rented to, oc-

cupied or used by or in the care of the

"insured." This exclusion does not apply to

"property damage" caused by fire, smoke or

explosion;

d. "Bodily injury" to any person eligible to receive

any benefits:

(1) Voluntarily provided; or

(2) Required to be provided;

by the "insured" under any:

(1) Workers' compensation law;

(2) Non-occupational disability law; or

(3) Occupational disease law;

e. "Bodily injury" or "property damage" for which

an "insured" under this policy:

(1) Is also an insured under a nuclear energy

liability policy; or

(2) Would be an insured under that policy but

for the exhaustion of its limit of liability.

A nuclear energy liability policy is one issued

by:

(1) American Nuclear Insurers;

(2) Mutual Atomic Energy Liability Underwrit-

ers;

(3) Nuclear Insurance Association of Canada;

or any of their successors; or

f. "Bodily injury" to you or an "insured" within the

meaning of part a. or b. of "insured" as de-

fined.

3. Coverage F – Medical Payments to Others,

does not apply to "bodily injury":

a. To a "residence employee" if the "bodily in-

jury":

(1) Occurs off the "insured location"; and

(2) Does not arise out of or in the course of the

"residence employee's" employment by an

"insured";

HO 00 03 04 91

Page 15 of 18

b. To any person eligible to receive benefits:

(1) Voluntarily provided; or

(2) Required to be provided;

under any:

(1) Workers' compensation law;

(2) Non-occupational disability law; or

(3) Occupational disease law;

c. From any:

(1) Nuclear reaction;

(2) Nuclear radiation; or

(3) Radioactive contamination;

all whether controlled or uncontrolled or how-

ever caused; or

(4) Any consequence of any of these; or

d. To any person, other than a "residence em-

ployee" of an "insured," regularly residing on

any part of the "insured location."

SECTION II – ADDITIONAL COVERAGES

We cover the following in addition to the limits of

liability:

1. Claim Expenses. We pay:

a. Expenses we incur and costs taxed against an

"insured" in any suit we defend;

b. Premiums on bonds required in a suit we de-

fend, but not for bond amounts more than the

limit of liability for Coverage E. We need not

apply for or furnish any bond;

c. Reasonable expenses incurred by an "insured"

at our request, including actual loss of earnings

(but not loss of other income) up to $50 per

day, for assisting us in the investigation or de-

fense of a claim or suit; and

d. Interest on the entire judgment which accrues

after entry of the judgment and before we pay

or tender, or deposit in court that part of the

judgment which does not exceed the limit of li-

ability that applies.

2. First Aid Expenses. We will pay expenses for

first aid to others incurred by an "insured" for

"bodily injury" covered under this policy. We will

not pay for first aid to you or any other "insured."

3. Damage to Property of Others. We will pay, at

replacement cost, up to $500 per "occurrence" for

"property damage" to property of others caused by

an "insured."

We will not pay for "property damage":

a. To the extent of any amount recoverable under

Section I of this policy;

b. Caused intentionally by an "insured" who is 13

years of age or older;

c. To property owned by an "insured";

d. To property owned by or rented to a tenant of

an "insured" or a resident in your household; or

e. Arising out of:

(1) A "business" engaged in by an "insured";

(2) Any act or omission in connection with a

premises owned, rented or controlled by an

"insured," other than the "insured location";

(3) The ownership, maintenance, or use of

aircraft, watercraft or motor vehicles or all

other motorized land conveyances.

This exclusion does not apply to a motor-

ized land conveyance designed for recrea-

tional use off public roads, not subject to

motor vehicle registration and not owned

by an "insured."

4. Loss Assessment. We will pay up to $1000 for

your share of loss assessment charged during the

policy period against you by a corporation or as-

sociation of property owners, when the assess-

ment is made as a result of:

a. "Bodily injury" or "property damage" not ex-

cluded under Section II of this policy; or

b. Liability for an act of a director, officer or trus-

tee in the capacity as a director, officer or

trustee, provided:

(1) The director, officer or trustee is elected by

the members of a corporation or associa-

tion of property owners; and

(2) The director, officer or trustee serves with-

out deriving any income from the exercise

of duties which are solely on behalf of a

corporation or association of property own-

ers.

This coverage applies only to loss assessments

charged against you as owner or tenant of the

"residence premises."

Page 16 of 18

HO 00 03 04 91

We do not cover loss assessments charged

against you or a corporation or association of

property owners by any governmental body.

Regardless of the number of assessments, the

limit of $1000 is the most we will pay for loss

arising out of:

a. One accident, including continuous or repeated

exposure to substantially the same general

harmful condition; or

b. A covered act of a director, officer or trustee.

An act involving more than one director, officer

or trustee is considered to be a single act.

The following do not apply to this coverage:

1. Section II – Coverage E – Personal Liability

Exclusion 2.a.(1);

2. Condition 1. Policy Period, under SECTIONS I

AND II – CONDITIONS.

SECTION II – CONDITIONS

1. Limit of Liability. Our total liability under Cover-

age E for all damages resulting from any one

"occurrence" will not be more than the limit of li-

ability for Coverage E as shown in the Declara-

tions. This limit is the same regardless of the

number of "insureds," claims made or persons in-

jured. All "bodily injury" and "property damage"

resulting from any one accident or from continu-

ous or repeated exposure to substantially the

same general harmful conditions shall be consid-

ered to be the result of one "occurrence."

Our total liability under Coverage F for all medical

expense payable for "bodily injury" to one person

as the result of one accident will not be more than

the limit of liability for Coverage F as shown in the

Declarations.

2. Severability of Insurance. This insurance applies

separately to each "insured." This condition will

not increase our limit of liability for any one

"occurrence."

3. Duties After Loss. In case of an accident or

"occurrence," the "insured" will perform the follow-

ing duties that apply. You will help us by seeing

that these duties are performed:

a. Give written notice to us or our agent as soon

as is practical, which sets forth:

(1) The identity of the policy and "insured";

(2) Reasonably available information on the

time, place and circumstances of the acci-

dent or "occurrence"; and

(3) Names and addresses of any claimants and

witnesses;

b. Promptly forward to us every notice, demand,

summons or other process relating to the acci-

dent or "occurrence";

c. At our request, help us:

(1) To make settlement;

(2) To enforce any right of contribution or in-

demnity against any person or organization

who may be liable to an "insured";

(3) With the conduct of suits and attend hear-

ings and trials; and

(4) To secure and give evidence and obtain

the attendance of witnesses;

d. Under the coverage – Damage to Property of

Others – submit to us within 60 days after the

loss, a sworn statement of loss and show the

damaged property, if in the "insured's" control;

e. The "insured" will not, except at the "insured's"

own cost, voluntarily make payment, assume

obligation or incur expense other than for first

aid to others at the time of the "bodily injury."

4. Duties of an Injured Person – Coverage F –

Medical Payments to Others.

The injured person or someone acting for the in-

jured person will:

a. Give us written proof of claim, under oath if

required, as soon as is practical; and

b. Authorize us to obtain copies of medical re-

ports and records.

The injured person will submit to a physical exam

by a doctor of our choice when and as often as we

reasonably require.

5. Payment of Claim – Coverage F – Medical

Payments to Others. Payment under this cover-

age is not an admission of liability by an "insured"

or us.

HO 00 03 04 91

Page 17 of 18

6. Suit Against Us. No action can be brought

against us unless there has been compliance with

the policy provisions.

No one will have the right to join us as a party to

any action against an "insured." Also, no action

with respect to Coverage E can be brought

against us until the obligation of the "insured" has

been determined by final judgment or agreement

signed by us.

7. Bankruptcy of an Insured. Bankruptcy or insol-

vency of an "insured" will not relieve us of our ob-

ligations under this policy.

8. Other Insurance – Coverage E – Personal Li-

ability. This insurance is excess over other valid

and collectible insurance except insurance written

specifically to cover as excess over the limits of

liability that apply in this policy.

SECTIONS I AND II – CONDITIONS

1. Policy Period. This policy applies only to loss in

Section I or "bodily injury" or "property damage" in

Section II, which occurs during the policy period.

2. Concealment or Fraud. The entire policy will be

void if, whether before or after a loss, an "insured"

has:

a. Intentionally concealed or misrepresented any

material fact or circumstance;

b. Engaged in fraudulent conduct; or

c. Made false statements;

relating to this insurance.

3. Liberalization Clause. If we make a change

which broadens coverage under this edition of our

policy without additional premium charge, that

change will automatically apply to your insurance

as of the date we implement the change in your

state, provided that this implementation date falls

within 60 days prior to or during the policy period

stated in the Declarations.

This Liberalization Clause does not apply to

changes implemented through introduction of a

subsequent edition of our policy.

4. Waiver or Change of Policy Provisions.

A waiver or change of a provision of this policy

must be in writing by us to be valid. Our request

for an appraisal or examination will not waive any

of our rights.

5. Cancellation.

a. You may cancel this policy at any time by

returning it to us or by letting us know in writing

of the date cancellation is to take effect.

b. We may cancel this policy only for the reasons

stated below by letting you know in writing of

the date cancellation takes effect. This cancel-

lation notice may be delivered to you, or

mailed to you at your mailing address shown in

the Declarations.

Proof of mailing will be sufficient proof of no-

tice.

(1) When you have not paid the premium, we

may cancel at any time by letting you know

at least 10 days before the date cancella-

tion takes effect.

(2) When this policy has been in effect for less

than 60 days and is not a renewal with us,

we may cancel for any reason by letting

you know at least 10 days before the date

cancellation takes effect.

(3) When this policy has been in effect for 60

days or more, or at any time if it is a re-

newal with us, we may cancel:

(a) If there has been a material misrepre-

sentation of fact which if known to us

would have caused us not to issue the

policy; or

(b) If the risk has changed substantially

since the policy was issued.

This can be done by letting you know at

least 30 days before the date cancellation

takes effect.

(4) When this policy is written for a period of

more than one year, we may cancel for any

reason at anniversary by letting you know

at least 30 days before the date cancella-

tion takes effect.

c. When this policy is cancelled, the premium for

the period from the date of cancellation to the

expiration date will be refunded pro rata.

d. If the return premium is not refunded with the

notice of cancellation or when this policy is

returned to us, we will refund it within a rea-

sonable time after the date cancellation takes

effect.

6. Nonrenewal. We may elect not to renew this

policy. We may do so by delivering to you, or

mailing to you at your mailing address shown in

the Declarations, written notice at least 30 days

before the expiration date of this policy. Proof of

mailing will be sufficient proof of notice.

7. Assignment. Assignment of this policy will not be

valid unless we give our written consent.

Page 18 of 18

HO 00 03 04 91

8. Subrogation. An "insured" may waive in writing

before a loss all rights of recovery against any

person. If not waived, we may require an assign-

ment of rights of recovery for a loss to the extent

that payment is made by us.

If an assignment is sought, an "insured" must sign

and deliver all related papers and cooperate with

us.

Subrogation does not apply under Section II to

Medical Payments to Others or Damage to Prop-

erty of Others.

9. Death. If any person named in the Declarations or

the spouse, if a resident of the same household,

dies:

a. We insure the legal representative of the de-

ceased but only with respect to the premises

and property of the deceased covered under

the policy at the time of death;

b. "Insured" includes:

(1) Any member of your household who is an

"insured" at the time of your death, but only

while a resident of the "residence prem-

ises"; and

(2) With respect to your property, the person

having proper temporary custody of the

property until appointment and qualification

of a legal representative.