Document mpV99qLgkg0vX2Xm8qpxYL05B

To ARF From DLS r Hanson Industries Memorandum Date July 31, 1987 Subject Rip & Tear Coverage Pursuant to Joe Zavagnin's letter of July 29, 1987, I do not believe that either exclusion should be eliminated from the National Union policy* With respect to Exclusion C (Loss of Use of Tangible Property), "this exclusion does not apply to loss of use . resulting from sudden and accidentlal physical injury or destruction of the insured's product . . . after such products or work have been put to use by any person or organization other than the insured." With respect to Exclusion E (Products Recall), it was never intended, nor did Kaiser have, coverage under their third party liability policy for products recall or the cost of repairing or replacing their own product. Unless you or John disagrees, I would appreciate it if you would advise Hr. Zavagnln that the elimination of these two exclusions is not required. vA-' N17576 combined stall not exceed tne amouni suit annual period commencing with the effective or anmvet sary a ate of tint im>. In those cases where the underlying Insurance listed in the Schedule of Underlying Insurance Policies contains cover* age(s), which are subject to an Aggregate Limit of Liability for ail insured damages, the Company's liability shall like' wise be limited to the amount stated in item 3(B) of the Declarations with respect to all occurrences during each an* nual period while this policy is in force commencing from its effective date. The umbrella policy aggregate limit, so amended, shall apply separately to each underlying insurance coverage which carries an aggregate limit in the policy of underlying insurance. ID) For the purpose of determining the limit of the Company's liability, all personal injury and property damage arising out of continuous or repeated exposure to substantially the same general conditions shall be considered as arising out of one occurrence. With respect to Advertising Liability, all damages involving the same injurious material or act, re gardless of the frequency or repetition thereof, the number and kind of media used and the number of claimants shall be deemed to arise out of one occurrence. This policy shall not apply: EXCLUSIONS (A) to any obligation for which the Insured or any carrier as his insurer may be held liable under any Worker's Compensa tion, Occupational Disease, Unemployment Compensation, or Disability Benefits Law, or under any similar law; (B) to any obligation which the Insured may be liable under any "no fault benefits" or "uninsured motorists" law; (C) to the loss of use of tangible property which has not been physically injured or destroyed, resulting from: (i) a delay in or lack of performance by or on behalf of the Insured of any contract or agreement, or (il) the failure of the Insured's products or work performed by or on behalf of the Insured to meet the level of - performance, quality, fitness or durability warranted or represented by the Insured: but this exclusion does not apply to loss of use of other tangible property resulting from the sudden and accidental physical Injury to or destruction of the Insured's products or work performed by or on behalf of die Insured after such pro* ducts or work have been put to use by any person or organization other than an Insured. (D) to Property Damage to: (i) the Insured's products arising out of such products or any part of such products; (ri) work performed by or on behalf of the Insured arising out of the work or any portion thereof, or out of material, parts or equipment furnished in connection therewith; (tit) property owned by the Insured;' (iv) aircraft or watercraft rented to, used by or in the care, custody or control of the Insured; (E) to damages claimed for the withdrawal, inspection, repair, replacement or loss of use of the Insured's products or work completed by or for the Insured or of any property of which such products or work form a part, if such pro duct, work or property are withdrawn from the market or from use by anyone because of any known or suspected de fect or deficiency therein; ' (F) to Personal Injury or Property Damage arising out of the ownership, maintenance, operation, use, loading or unload ing of: (i) any watercraft, except to the extent that coverage is provided by a policy listed in the Schedule of Underlying Insurance; or (ii) any aircraft owned by the Insured or rented to the Insured without a crew. (G) to liability of any employee with respect to Personal Injury to another employee of the same employer injured in the course of such employment unless insurance therefore is provided by a policy listed in die Schedule of Underlying In surance and then not for broader coverage than is afforded to such employee by that policy; (HH&nder Advertising Usability to claims made against the Insured; 0) for failure of performance of contract; 6LD055368 0049-GLD-000055368