Document MGyJ14D2yRjnZQwa6BwLbJd59

L1ABIL..Y OF INSURERS ENDc .ILJMENT .Endorsement Number 1 Effective Date of Endorsement__________!OCTOBER 1ST J987 Attached to and forming part of POUCY Number. _ HR0000jSl87 NAMED INSURED _ _HANS0P INDUSTRIES_____________________ It is hereby understood and agreed between the NAMED INSURED and the Insurance companies listed beiow, which are Vie members of American Excess Insurance Association (referred to in the POUCY as "the COM PANY"). as follows: (1) the insurance afforded by this POLICY is provided by the several separate insurance companies listed below (hereafter the "insurance companies") and not by the American Excess Insurance Association which is not an insurance company; (2) the liability of the insurance companies shall be several and not joint. The liability of each insurance company shall be separate and apart from the liabilities of ait cither insurance companies and in no event shall any insurance company participate in the liability of any other insurance company; (3) the maximum liabiBty of ail the insurance companies shall be the total of the percentage participations of such insurance companies as fisted below, which total of percentage participations is _1QL_% 75.000.000- y (4) each insurance company shaft only be liable under the POUCY for the percentage, set opposite its name beiow, of any ULTIMATE NET LOSS; provided that: (A) in the event that the total of the percentage participations of the insurance companies listed below is less than 100% of $751000,000 , then, in respect of any ULTIMATE NET LOSS, irrespective of the amount thereof, the INSURED shall have no right of recovery under this POUCY for the uninsured percentage of such ULTIMATE NET LOSS, which uninsured percentage is the percentage by which such total of the percentage participations is less than 100%; (6) in no event shall any insurance company pay more than the percentage set opposite its name of the amount stated in item 2 of the Declarations as the COMPANY'S Limit of Lability; (C) in the event that any insurance company lor any reason whatsoever, including but not limited to the insolvency or financial-impairment of such insurance company, is unable or refuses to indemnify any INSURED in respect of the percentage of any ULTIMATE NET LOSS for which such insurance company is liable, no other insurance company or companies shall be liable for such percentage and me INSURED shall have right of recovery of such percentage oniy from the insurance company which is so unable or so refuses. INSURANCE COMPANIES PERCENTAGE PARTICIPATION THE AETNA CASUALTY AND SURETY COMPANY FEDERAL INSURANCE COMPANY GENERAL ACCIDENT INSURANCE COMPANY OF AMERICA THE HOME INSURANCE COMPANY INSURANCE COMPANY OF NORTH AMERICA NORTH AMERICAN COMPANY FOR PROPERTY AND CASUALTY INSURANCE THE TRAVELERS INDEMNITY COMPANY UNITED STATES FIRE INSURANCE COMPANY ZURICH INSURANCE COMPANY, U.S. BRANCH 22.92% 12.13% 1.72% 1.33% !9. 19% 1.94% 19.19% 10.79% 10.79% ASA 2 President Signature of Authorized Representative Farmington Management, Inc. [10*1] N17561 MANDATORY ENDORSEMENT (For Use On Policies Issued In New York) lb is agreed that such insurance as is afforded by the Policy is amended as follows: 1. "Pay On Behalf Of" is substituted for "Indemnify11 wherever such word appears .in the Policy. 2. By the addition of " ... or the licensed agent of the Company ..." after the word " ... Company ..." in the seventh (7tit) line of IV Condition (c) Notice of Occurrence or Claim. 3. IV Condition (q) Cancellation is amended to read as follows: "(q) Cancellation or Non-Renewal This POLICY may be cancelled: (1) at any time by the NAMED INSURED by delivering written notice to the COMPANY stating when, not less than thirty (30) days from the date the notice is delivered, cancellation shall be effective1, or (2) by the COMPANY by delivering written notice to the NAMED INSURED stating when, not less than ninety (90) days from the date notice was delivered, cancellation shall be effective; except, in the event of cancellation for nonpayment of premiums, such cancellation shall become effective fifteen (15) days after the date notice is delivered. Payment or tender of unearned premium is not a condition of cancellation. After the new or renewal POLICY has'been in force for more than sixty (60) days, the POLICY may be cancelled by the COMPANY only if: GLD054927 0049-G LD-000054927 (a) required pursuant to a program approved by the Superintendent of Insurance of the State of New York as necessary because a continuation of the present premium volume would be hazardous to the interests of policyholders of the COMPANY, its creditors or the public, or (b) the cancellation is based on one or more of the following reasons: (A) Non-payment of premium, (B) Conviction of a crime arising out of acts increasing the hazard insured against, (C) Discovery of fraud or material misrepresentation in obtaining the POLICY or in the presentation of a claim thereunder, (D) Discovery of willful or reckless acts or omissions increasing the hazard insured against, (E) Physical changes in the property insured occurring after issuance or last annual anniversary date of the POLICY which result in the property becoming uninsurable in accordance with the COMPANY'S objective, uniformly applied underwriting standards in effect at the time the POLICY was issued or last voluntarily renewed, or (F) A determination by the Superintendent of Insurance of the State of New York that the continuation of the POLICY would violate or would place the COMPANY in violation of the laws of the State of New York. 2- - GLD054928 0049-GLD-000054928 In the event the POLICY is non-renewed by the COMPANY, written notice of its intention to non-renew shall be delivered by the COMPANY to the NAMED INSURED at least sixty (60) days prior to the termination or renewal date of the POLICY. Such notice shall state the reasons for non-renewal. No increase in rates for such POLICY shall be imposed unless written notice of intention thereof is delivered to the NAMED INSURED at least sixty (60) days prior to .the anniversary date of such POLICY. Delivery by hand of such notice either by the NAMED INSURED or the COMPANY shall be sufficient delivery./Written notice shall be deemed sufficient delivery if sent by certified mail# return receipt requested, or by telex and receipt is acknowledged. The POLICY PERIOD shall end on the effective date and hour of cancellation stated in the notice. In the event of cancellation by the INSURED, the premium retained by the COMPANY shall be calculated in accordance with the COMPANY'S short rate table which is attached hereto as Schedule C. In the event of cancellation by the COMPANY, the premium retained by the COMPANY shall be calculated pro-rata based upon the duration of the POLICY PERIOD. for purposes of notice required under this Condition (q) or pursuant to regulation, the offer by the COMPANY of renewal on terms or premiums different from those in effect during the POLICY PERIOD shall not constitute cancellation or non-renewal of this POLICY by the COMPANY." The definition of (g) "DAMAGES1' of V Definitions is amended to read as follows: "DAMAGES" means damages on account of PERSONAL INJURY, PROPERTY DAMAGE or ADVERTISING OFFENSE, but "DAMAGES" do not include governmental, civil or criminal fines or penalties and "DEFENSE EXPENSES." -3- GLD054929 0049-GLD-000054929 5. Subparagraph 2 of (q) "PERSONAL INJURY" is amended to read as follows: *'(2) injury arising out of false arrest, detention or imprisonment, malicious prosecution, wrongful entry or eviction or other invasion of the right of private occupancy, or humiliation; and it AEIA-S-6 4- - GLD054930 0049-GLD-000054930