EL-AD RESIDENCES AT MIRAMAR CONDOMINIUM ASSOCIATION, INC. V. MT. HAWLEY INSURANCE COMPANY Et Al Complaint
EL-AD RESIDENCES AT MIRAMAR CONDOMINIUM ASSOCIATION, INC. V. MT. HAWLEY INSURANCE COMPANY Et Al Complaint
EL-AD RESIDENCES AT MIRAMAR CONDOMINIUM ASSOCIATION, INC. V. MT. HAWLEY INSURANCE COMPANY Et Al Complaint
I TVDNI?
May 15, 2009
CASE NO.
Plaintiff,
V.
Defendants.
COMPLAINT
ASSOCIATION,
Plaintiff, EL-AD RESIDENCES AT MIRAMAR CONDOMINIUM
and pursuant to the
INC. ("RESIDENCES"), by and through its undersigned counsel
Federal Rules of Civil Procedure, sues the Defendants, MT. HAWLEY INSURANCE
INSURANCE
COMPANY ("MT. HAWLEY") and WESTCHESTER SURPLUS LINES
GENERAL ALLEGATIONS
and breach of contract (actual cash value), breach of contract (replacement cost value),
and breach of the implied warranty of good faith and fair dealing, seeking judgment for
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because the amount in controversy exceeds $75, 000.00, exclusive of interest, costs
and attorneys' fees, and there is complete diversity of citizenship between the parties.
not-for-profit corporation organized and existing under the laws of the State of Florida,
and was authorized to do, and continues to do business in Broward County, Florida.
4. At all material times, MT. HAWLEY was a foreign corporation and surplus
lines insurance carrier authorized by the State of Florida pursuant to a letter of eligibility
County, Florida.
surplus lines insurance carrier authorized by the State of Florida pursuant to a letter of
County, Florida.
coverage to RESIDENCES of $2 million per occurrence for the twelve month period
beginning September 07, 2005 and ending September 07, 2006. True and correct
copies of the declaration page and insurance policy (the "Mt. Hawley Insurance
"
KATZMAN GARFINKEL ROSENBAUM LLP
"
250 Australian Avenue South, Suite 500 West Palm Beach, FL 33401
*
Telephone (561) 653-2900 Facsimile (561) 820-2542
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per occurrence for the twelve month period beginning September 07, 2005 and ending
September 07, 2006. A true and correct copy of the declaration page (the "Westchester
10. The intent and purpose of both the Mt. Hawley Insurance Contract and the
direct physical loss to the insured property from September 07, 2005 through
September 07, 2006, with MT. HAWLEY providing the first layer of coverage in the
amount of $2 million per occurrence and WESTCHESTER providing the second layer of
WESTCHESTER is liable for any covered loss, damages and/or judgment in excess of
reference, all terms and conditions of the Mt. Hawley Insurance Contract to the extent
that its terms do not conflict with the express terms and conditions contained in the
within the Insurance Contracts that are relevant to this action, there are no conflicting
1
RESIDENCES has requested a copy of the Westchester policy from WESTCHESTER but has not
received it yet. WESTCHESTER has a copy of the policy.
KATZMAN GARFINKEL ROSENBAUM LLP *250 Australian Avenue South, Suite 500 *West Palm Beach, FL 33401
Telephone (561) 653-2900 Facsimile (561) 820-2542
*
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El-Ad Residences v. Mt. Hawley and Westchester
Complaint
Page 4
12. On or about October 24, 2005, Hurricane Wilma struck Broward County,
Wilma.
16. To date, over three years after Hurricane Wilma, the Defendants have
failed to provide RESIDENCES with any estimate of the damages, and have failed to
adjust, pay, and/or settle RESIDENCES' claim for hurricane damage, despite their
Contracts.
17. Venue lies in the Southern District of Florida because, among other things,
the Insurance Contracts were entered into and provided insurance coverage for
18. All conditions precedent to the filing of this action have occurred and/or
COUNT I
DECLARATORY JUDGMENT
WESTCHESTER for declaratory judgment and supplemental relief, the subject matter of
which exceeds $75, 000.00 exclusive of interest, costs and attorneys' fees, pursuant to
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21. RESIDENCES seeks a declaratory judgment: (a) that the Mt. Hawley
Insurance Contract is valid and enforceable; (b) that pursuant to the terms and
conditions of the Insurance Contracts, RESIDENCES has a valid and enforceable right
to coverage, and to a determination of the total amount of all damages sustained from
timely adjust, pay and/or settle RESIDENCES' claim; (c) that the Mt. Hawley Insurance
Contract fails to comply with Section 627.701(a-b), Florida Statutes, and 627.701(4)(a),
Florida Statutes, and therefore, the provisions concerning co-insurance and a separate
hurricane deductible are void and unenforceable; (d) determining the total amount of the
losses and damages caused by Hurricane Wilma to RESIDENCES; and (e) awarding
concerning a separate deductible of "3% of total values at risk Per Building (including
time element if applicable) at the time of loss for Windstorm or Hail" is vague and
ambiguous. The term "Windstorm" is not defined. The amount of the separate
deductible for Windstorm or Hail is not stated as a sum certain. RESIDENCES seeks a
declaratory judgment that the failure to define the term "Windstorm" renders the
250 Australian Avenue South, Suite 500 *West Palm Beach, FL 33401
*
KATZMAN GARFINKEL ROSENBAUM LLP
*
Telephone (561) 653-2900 Facsimile (561) 820-2542
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alternatively seeks a declaratory judgment that, to the extent the amount of the separate
separate deductible for Windstorm or Hail loss is 3% of the $2 million limit of coverage
offered under the Mt. Hawley Insurance Contract because $2 million is all that is "at risk"
23. MT. HAWLEY's and WESTCHESTER's actions have raised doubt and
insecurity for RESIDENCES regarding: the validity, enforceability and scope of the
timely adjust, pay and/or settle RESIDENCES' claim for all damages sustained from
Hurricane Wilma; the validity and enforceability of the co-insurance and separate
hurricane deductible provision of the Mt. Hawley Insurance Contract; and, if determined
case.
(form CP 01 25 06 95) of the Mt. Hawley Insurance Contract, and the Westchester
Insurance Contract, together with Section 627.70131, Florida Statutes, require MT.
claims for the damages it sustained from Hurricane Wilma. MT. HAWLEY and
KATZMAN GARFINKEL ROSENBAUM LLP *250 Australian Avenue South, Suite 500 *West Palm Beach, FL 33401
*
Telephone (561) 653-2900 Facsimile (561) 820-2542
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Florida law require MT. HAWLEY and WESTCHESTER to timely adjust, pay and/or
damages. MT. HAWLEY and WESTCHESTER have failed to adjust the claim and
determine the total amount of damages that RESIDENCES sustained from Hurricane
of its Hurricane Wilma damages and for supplemental relief to fully compensate
26. The Insurance Contracts fail to comply with Section 627.701, Florida
co-insurance
Statutes, because the faces of the Insurance Contracts do not contain a
notice as is required. Further, the faces of the Insurance Contracts fail to contain a
separate hurricane deductible notice as required and/or fail to comply with the wording
and bold faced type size requirements set forth in Section 627.701, Florida Statutes.
Contract
separate hurricane deductible provisions of the Mt. Hawley Insurance
are
and
void and unenforceable because the Mt. Hawley Insurance Contract does not comply
with the set forth in Section 627.701(1)(a-b), Florida Statutes, and Section
requirements
the time of loss for Windstorm or Hail" must be construed so that the maximum
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adverse and antagonistic interests in the validity and enforceability of the Insurance
Contracts; the full amount of RESIDENCES' losses and damages from Hurricane
Wilma; the coverage provided by the Insurance Contracts; the validity and enforceability
of the co-insurance and separate hurricane deductible provision of the Mt. Hawley
Insurance Contract; and, the amount of the hurricane deductible to be applied in this
case.
30. RESIDENCES' adverse and antagonistic interests are before this Court by
proper process. The relief RESIDENCES seeks is not the mere rendering of legal
advice.
31. RESIDENCES has a bona fide, present and practical need for a
this action and is required to pay them a reasonable fee for their services.
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MT. HAWLEY and WESTCHESTER (a) that the Insurance Contracts are valid
against
and enforceable; (b) that pursuant to the terms and conditions of the Insurance
Hurricane Wilma; (c) determining the total amount of the losses and damages caused
Hurricane Wilma to RESIDENCES; (d) that the Mt. Hawley Insurance Contract fails
by
to comply with Section 627.701, Florida Statutes, and therefore, the co-insurance and
separate hurricane deductible provisions are void and unenforceable; (e) that because
the provision concerning a separate "3% of total values at risk Per Building (including
time element if applicable) at the time of loss for Windstorm or Hail" is ambiguous, it is
deductible is 3% of the $2 million limit of coverage under the Mt. Hawley Insurance
KATZMAN GARFINKEL ROSENBAUM LLP *250 Australian Avenue South, Suite 500 *West Palm Beach, FL 33401
Facsimile (561) 820-2542
*
Contract; (g) awarding supplemental relief to fully compensate RESIDENCES for all of
its hurricane related damages under Chapter 86, Florida Statutes; and, (h) awarding
RESIDENCES its reasonable attorneys' fees under Section 627.428, Florida Statutes,
or in the alternative, under Section 626.911, Florida Statutes, together with taxable
costs, prejudgment interest under Section 627.70131, Florida Statutes, and any other
and further relief the Court deems just, equitable and proper.
COUNT II
BREACH OF CONTRACT AGAINST MT. HAWLEY
(Actual Cash Value)
36. This is an action against MT. HAWLEY for breach of the Mt. Hawley
coverage to RESIDENCES for the twelve (12) month period commencing September 7,
accepted MT. HAWLEY's offer of property coverage and paid the premium.
39. The Mt. Hawley Insurance Contract set forth the rights and obligations of
MT. HAWLEY to RESIDENCES with respect to its claim, including among other things,
250 Australian Avenue South, Suite 500 *West Palm Beach, FL 33401
*
KATZMAN GARFINKEL ROSENBAUM LLP
Telephone (561) 653-2900 Facsimile (561) 820-2542
*
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* * *
Hurricane Wilma.
41. In or about October, 2005 through October, 2008, and continuing to the
present time, MT. HAWLEY has materially breached the Mt. Hawley Insurance Contract
by failing to pay the actual cash value of the losses or damages to the insured property
Wilma, RESIDENCES made a claim for the losses and damages caused from
Hurricane Wilma and requested to be paid the actual cash value due under the Mt.
the value of the lost or damaged property and has not paid RESIDENCES the full actual
cash value due under the Mt. Hawley Insurance Contract. Instead, MT. HAWLEY
contends that the majority of the loss is under deductible and, otherwise, has denied the
claim.
KATZMAN GARFINKEL ROSENBAUM LLP *250 Australian Avenue South, Suite 500 *West Palm Beach, FL 33401
Facsimile (561) 820-2542
*
44. MT. HAWLEY breached the Mt. Hawley Insurance Contract by failing to
accurately adjust RESIDENCES' claim and properly determine the value of its lost or
damaged property and by failing to fully pay RESIDENCES the actual cash value of the
failing to correctly adjust, fully pay or settle RESIDENCES' actual cash value claim and
Hurricane Wilma.
46. As a direct result of MT. HAWLEY's material breaches of the Mt. Hawley
this action and is required to pay them a reasonable fee for their services.
KATZMAN GARFINKEL ROSENBAUM LLP *250 Australian Avenue South, Suite 500
"
West Palm Beach, FL 33401
Telephone (561) 653-2900
*
Facsimile (561) 820-2542
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aiding such insurer has failed for 30 days after demand prior
to the commencement of the action to make payment in
accordance with the terms of the contract, the trial judge
shall allow to the plaintiff a reasonable attorney's fee or
compensation and include such fee or compensation in any
judgment that may be rendered in such action.
compensatory damages, together with interest, costs and attorneys' fees under Section
627.428, Florida Statutes, or in the alternative, under Section 626.911, Florida Statutes,
together with taxable costs, prejudgment interest under Section 627.70131, Florida
Statutes, and other such relief as this Court deems just, equitable and proper.
COUNT III
BREACH OF CONTRACT AGAINST MT. HAWLEY
(Replacement Cost Value)
51. This is an action by RESIDENCES against MT. HAWLEY for breach of the
Mt. Hawley Insurance Contract (replacement cost value) seeking damages in excess of
53. The Mt. Hawley Insurance Contract sets forth the rights and obligations of
MT. HAWLEY to RESIDENCES with respect to its claim, including among other things,
* * *
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Contract, RESIDENCES has a right to coverage for property losses or damages caused
by Hurricane Wilma.
55. In or about October, 2005, and at other times following Hurricane Wilma,
RESIDENCES made a claim to MT. HAWLEY for the losses and damages caused from
Hurricane Wilma and has requested that MT. HAWLEY pay RESIDENCES the actual
cost values for its losses and damages, as provided by the Mt.
cash and replacement
cash value and the replacement cost value due under the Mt. Hawley Insurance
under
Contract. Instead, MT. HAWLEY contends that the majority of the loss is
57. MT. HAWLEY materially breached the Mt. Hawley Insurance Contract by
250 Australian Avenue South, Suite 500 *West Palm Beach, FL 33401
*
KATZMAN GARFINKEL ROSENBAUM LLP
Telephone (561) 653-2900
*
Facsimile (561) 820-2542
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actual cash value and the replacement cost value of the lost or damaged property.
58. MT. HAWLEY further breached the Mt. Hawley Insurance Contract, and is
value claim and, in doing so, frustrated RESIDENCES' ability to make the repairs
replacement cost basis, which constitutes yet another breach of the Mt. Hawley
Insurance Contract.
59. As a direct and proximate result of MT. HAWLEY's breaches of the Mt.
this action and is required to pay them a reasonable fee for their services.
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aiding such insurer has failed for 30 days after demand prior
to the commencement of the action to make payment in
accordance with the terms of the contract, the trial judge
shall allow to the plaintiff a reasonable attorney's fee or
compensation and include such fee or compensation in any
judgment that may be rendered in such action.
Section
compensatory damages, together with interest, costs and attorneys' fees under
627.428, Florida Statutes, or in the alternative, under Section 626.911, Florida Statutes,
together with taxable costs, prejudgment interest under Section 627.70131, Florida
Statutes, and other such relief as this Court deems just, equitable and proper.
COUNT IV
BREACH OF IMPLIED WARRANTY OF GOOD FAITH
AND FAIR DEALING AGAINST MT. HAWLEY
is material term in
66. An implied warranty of good faith and fair dealing a
67. The Mt. Hawley Insurance Contract does not specify the permissibility or
KATZMAN GARFINKEL ROSENBAUM LLP 250 Australian Avenue South, Suite 500 *West Palm Beach, FL 33401
"
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governing MT. HAWLEY's exercise of its discretion nor provides standards governing
the time-frame within which MT. HAWLEY must adjust or value a claim.
70. Although the Mt. Hawley Insurance Contract does not specify the time-
frame within which MT. HAWLEY must determine the value of RESIDENCES' claim,
reasonable amount of time given the nature of the loss and the attendant
circumstances.
71. Some three years later, through its delay and failure to adjust
of the Mt. Hawley Insurance Contract. Following Hurricane Wilma on October 24, 2005
and continuing to the present, MT. HAWLEY has breached the implied covenant of
good faith and fair dealing by delaying and failing to reasonably value the losses or
reasonably determine the cost to repair or replace RESIDENCES' property that was
damaged or lost during Hurricane Wilma; delaying and failing to make reasonable
efforts to agree with RESIDENCES as to the value of the lost or damaged property or
the cost of its repair or replacement and failing to value and/or adjust the loss with
250 Australian Avenue South, Suite 500 *West Palm Beach, FL 33401
"
KATZMAN GARFINKEL ROSENBAUM LLP
*
Telephone (561) 653-2900 Facsimile (561) 820-2542
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72. MT. HAWLEY's delay and failure to timely adjust RESIDENCES' claim
has frustrated the purpose of the Mt. Hawley Insurance Contract and had disappointed
Contract.
good faith and fair dealing in the Mt. Hawley Insurance Contract, RESIDENCES has
also suffered special damages, including, but not limited to, the expenses of defending
liens resulting from hurricane related roof repairs for which MT. HAWLEY unreasonably
KATZMAN GARFINKEL ROSENBAUM LLP *250 Australian Avenue South, Suite 500 *West Palm Beach, FL 33401
*
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aiding such insurer has failed for 30 days after demand prior
to the commencement of the action to make payment in
accordance with the terms of the contract, the trial judge
shall allow to the plaintiff a reasonable attorney's fee or
compensation and include such fee or compensation in any
judgment that may be rendered in such action.
77. RESIDENCES is further entitled to recover prejudgment interest pursuant
compensatory damages and special damages, together with interest, costs and
attorneys' fees under 627.428, Florida Statutes, and such other relief as this Court
COUNT V
BREACH OF CONTRACT AGAINST WESTCHESTER
(Actual Cash Value)
reference, the terms and conditions of the Mt. Hawley Insurance Contract. Accordingly,
the following terms and conditions of the Mt. Hawley Insurance Contract set forth the
250 Australian Avenue South, Suite 500 *West Palm Beach, FL 33401
"
KATZMAN GARFINKEL ROSENBAUM LLP
Telephone (561) 653-2900
*
Facsimile (561) 820-2542
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including among other things, the following pertinent terms and conditions:
82. Pursuant to the terms of the Mt. Hawley Insurance Contract, as adopted
Wilma, RESIDENCES made a claim for the losses and damages caused from
Hurricane Wilma and requested to be paid the actual cash value due under the
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determined the value of the lost or damaged property and has not paid RESIDENCES
the actual cash value due under the Westchester Insurance Contract. Instead,
WESTCHESTER, through its delay and failure to pay, has effectively denied the claim.
to adjust RESIDENCES' claim and determine the value of its lost or damaged property
and by failing to pay RESIDENCES the actual cash value of the lost or damaged
property.
failing to adjust, pay and/or settle RESIDENCES' actual cash value claim and in so
Wilma.
damages.
this action and is required to pay them a reasonable fee for their services.
KATZMAN GARFINKEL ROSENBAUM LLP *250 Australian Avenue South, Suite 500 *West Palm Beach, FL 33401
Telephone (561) 653-2900 Facsimile (561) 820-2542
*
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for
WHEREFORE, RESIDENCES demands judgment against WESTCHESTER
fees under Section
compensatory damages, together with interest, costs and attorneys'
627.428, Florida Statutes, or in the alternative, under Section 626.911, Florida Statutes,
COUNT VI
BREACH OF CONTRACT AGAINST WESTCHESTER
(Replacement Cost Value)
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95. The Westchester Insurance Contract adopted and incorporated the terms
and conditions of the Mt. Hawley Insurance Contract. Accordingly, the terms and
conditions contained in the Mt. Hawley Insurance Contract set forth the rights and
96. Pursuant to the terms and conditions of the Mt. Hawley Insurance
Wilma, RESIDENCES made a claim to WESTCHESTER for the losses and damages
caused from Hurricane Wilma and has requested that WESTCHESTER pay
RESIDENCES the actual cash and replacement cost values for its losses and damages,
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determined the value of the lost or damaged property and has not paid RESIDENCES
the actual cash value and the replacement cost value due under the Westchester
Insurance Contract. Instead, WESTCHESTER, through its delay and failure to pay, has
actual cash value and the replacement cost value of the lost or damaged property.
cash value claim and, in doing so, frustrated RESIDENCES' ability to make the repairs
replacement cost basis, which constitutes yet another breach of the Westchester
Insurance Contract.
damages.
this action and is required to pay them a reasonable fee for their services.
KATZMAN GARFINKEL ROSENBAUM LLP *250 Australian Avenue South, Suite 500 *West Palm Beach, FL 33401
*
Telephone (561) 653-2900 Facsimile (561) 820-2542
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627.428, Florida Statutes, or in the alternative, under Section 626.911, Florida Statutes,
Statutes, and other such relief as this Court deems just, equitable and proper.
COUNT VII
BREACH OF IMPLIED WARRANTY OF GOOD FAITH
AND FAIR DEALING AGAINST WESTCHESTER
of
106. This is an action by RESIDENCES against WESTCHESTER for breach
matter of which exceeds
implied warranty of good faith and fair dealing, the subject
109. Neither the Westchester Insurance Contract nor the Mt. Hawley Insurance
together this
Insurance Contract; therefore the contracts individual and construed on
111. Neither the Westchester Insurance Contract nor the Mt. Hawley Insurance
frame within which WESTCHESTER must determine the value of RESIDENCES' claim,
circumstances.
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113. Some three years later, through its delay and failure to adjust
24, 2005 and continuing to the present, WESTCHESTER has breached the implied
to reasonably value the
covenant of good faith and fair dealing by delaying and failing
efforts to agree with RESIDENCES as to the value of the lost or damaged property or
has frustrated the purpose of the Westchester Insurance Contract and had disappointed
Contract.
of good faith and fair dealing in the Westchester Insurance Contract, RESIDENCES has
also suffered special damages, including, but not limited to, the expenses of defending
liens resulting from hurricane related roof repairs for which MT. HAWLEY unreasonably
250 Australian Avenue South, Suite 500 *West Palm Beach, FL 33401
*
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JURY DEMAND
(Signature follows)
250 Australian Avenue South, Suite 500 *West Palm Beach, FL 33401
"
KATZMAN GARFINKEL ROSENBAUM LLP
*
Telephone (561) 653-2900 Facsimile (561) 820-2542
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Respectfully submitted,
KATZMAN GARFINKEL ROSENBAUM LLP
Attorneys for Plaintiff
250 Australian Avenue South, Suite 500
West Palm Beach, Florida 33401
(561) 653-2900; Fax (561) 820-2542
Email: drosenbaum(kgrlawfirm.com
Email: isiracusakqrlawfirm.com
Email: jlawrencekqrlawfirm.com
Email: mkeegankgrlawfirm.com
Email: rvaluntaskqrlawfirm.com
BY:
ANI R:WtM
rid Bar No. 306(71
JOS PH M. SIRACUSA
Florida Bar No. 159670
JENNILYNN E. LAWRENCE
Florida Bar No. 155896
MARK G. KEEGAN
Florida Bar No. 503371
RICHARD VALUNTAS
Florida Bar No. 151084
723288
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COMPOSITE
EXHIBIT
"A”
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mi
MT. HAWLEY
Policy Period: From 09/07/2005 to 09/07/2006 at 12:01 A.M. Standard Time at your mailing address shown above.
DESCRIPTION OF PREMISES
Covered Locations Listed Below:
2480 West Preserve Way, Miramar, FL 33025
Total coverage (limit) applicable Limit$2, 000, 000, part of $2, 000, 000
The above limit applies to the following and is subject to any sublimits stated elsewhere in the policy:
*
Building
Business Personal Property*
Business Income (without Extra Expense)
*
Replacement Cost Applies
Per Occurrence Loss Limit
At no time will we pay more than $2, 000, 000 for a loss due to a single occurrence or event.
/0 101
U
Authorized Signature
PB 9/28/2005
DECLARATIONS -
DEDUCTIBLE ADDENDUM
PERIL DEDUCTIBLE(S)
$10, 000 Per Occurrence for All Covered Perils, except:
3.00% of total values at risk Per
Building (including time element if applicable) at the time of loss for Windstorm or Hall
$50, 000 Per Occurrence for Earthquake
SUPPLEMENTAL DECLARATIONS
If coverage for Certified Acts of Terrorism, as defined in the Terrorism Risk Insurance Act of 2002, is provided under the
terms of your insurance policy, losses caused by acts of terrorism is partially reimbursed by the United States under a
formula whereby the United States pays 90% of covered terrorism losses exceeding a prescribed deductible to the
insurance company providing for the coverage.
With respect to any one or more "certified acts of terrorism" under the federal Terrorism Risk Insurance Act of 2002, we
will not pay any amounts for which we are not responsible under the terms of that Act (including subsequent action of
Congress pursuant to the Act) due to the application of any clause which results in a cap on our liability for payments
for terrorism losses.
00001 - 001 Building $48, 200, 000 RCV Built: 2002, Masonry Joisted
-
00001 -
00001 - 001 Business Income $1, 000, 000 ALS Built: 2002, Masonry Joisted
-
*
For Limit of Insurance please see Declarations page of this policy.
**
Indicate: ACV (Actual Cash Value), ALS (Actual Loss Sustained), FRC (Functional Replacement Cost), RCV
(Replacement Cost Value), SP (Selling Price) or SV (Stated Value).
FORMS AND ENDORSEMENTS LISTED BELOW APPLY TO AND ARE MADE PART OF THIS POLICY AT TIME OF
ISSUE.
'
Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and what is
and is not covered.
"
Throughout this policy the words "you" and "your" refer to the Named Insured shown in the Declarations. The words "we,
"us" and "our" refer to the Company providing this insurance.
Other words and phrases that appear in quotation marks have special meaning. Refer to Section H — Definitions.
Covered Property, as used in this Coverage Part, repairs to the building or structure.
means the type of property described in this
b. Your Buslness Personal Property located in
section, A.1., and limited in A.2., Property Not or on the building described in the Declare-
Covered, if a Limit of Insurance is shown in the
Declarations for that type of property. tions or in the open (or in a vehicle) within 100
feet of the described premises, consisting of
the following unless otherwise specified in the
a. Building, meaning the building or structure
described in the Declarations, including: Declarations or on the Your Business Person-
al Property Separation of Coverage form:
—
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(7) Leased personal property for which you k. Property that is covered under another cover-
have a contractual responsibility to in- age form of this or any other policy in which it
sure, unless otherwise provided for under is more specifically described, except for the
Personal Property of Others. excess of the amount due (whether you can
collect on it or not) from that other insurance;
C. Personal Property Of Others that is:
I, Retaining walls that are not part of a building;
(1) In your care, custody or control; and
m. Underground pipes, flues or drains;
(2) Located in or on the building described in
the Declarations or in the open (or in a n. Electronic data, except as provided under
Additional Coverages Electronic Data.
vehicle) within 100 feet of the described
—
(1) The lowest basement floor; or Are licensed for public roads; or
(1) use on
h. Land (including land on which the property is This paragraph does not apply to:
located), water, growing crops or lawns;
(a) Vehicles or self-propelled machines,
I. Personal property while airborne or or autos you manufacture, process or
waterborne; warehouse;
37 of 109
Case 0:09-cv-60723-AJ Document 1 Entered on FLSD Docket 05/15/2009 Page 38 of 59
(c) Rowboats or canoes out of water at will pay for debris removal expense is
the described premises; or limited to 25% of the sum of the
deductible plus the amount that we
(d) Trailers, but only to the extent provid- pay for direct physical loss or damage
ed for in the Coverage Extension for to the Covered Property that has sus-
Non-Owned Detached Trailers. tained loss or damage.
q. The following property while outside of (4) We will pay up to an additional $10, 000
buildings: for debris removal expense, for each lo-
cation, in any one occurrence of physical
(1) Grain, hay, straw or other crops; loss or damage to Covered Property, if
one or both of the following circumstances
(2) Fences, radio or television antennas (in- appiy:
cluding satellite dishes) and their lead-in
wiring, masts or towers, signs (other than (a) The total of the actual debris removal
signs attached to buildings), trees, shrubs expense plus the amount we pay for
or plants (other than "stock" of trees, direct physical loss or damage ex-
shrubs or plants), all except as provided in ceeds the Limit of Insurance on the
the Coverage Extensions. Covered Property that has sustained
loss or damage.
3. Covered Causes Of Loss
(b) The actual debris removal expense
See applicable Causes of Loss Form as shown exceeds 25% of the sum of the
in the Declarations, deductible plus the amount that we
pay for direct physical loss or damage
4. Additional Coverages to the Covered Property that has sus-
tained loss or damage.
a. Debris Removal
Therefore, if (4)(a) and/or (4)(b) apply, our
(1) Subject to Paragraphs (3) and (4), we will totalpayment for direct physical loss or
pay your expense to remove debris of damage and debris removal expense may
Covered Property caused by or resulting reach but will never exceed the Limit of
from a Covered Cause of Loss that Insurance on the Covered Property that
occurs during the policy period. The has sustained loss or damage, plus
expenses will be paid only if they are $10, 000.
reported to us in writing within 180 days of
the date of direct physical foss or damage. (5) Examples
(2) Debris Removal does not apply to costs The following examples assume that there
to: is no coinsurance penalty.
(b) Subject to (a) above, the amount we The debris removal expense is less than
25% of the sum of the loss payable plus
the deductible. The sum of the loss pay- from loss or damage by a Covered Cause of
able and the debris removal expense Loss, we will pay for any direct physical loss
($49, 500 + $10, 000 = $59, 500) is less or damage to that property:
than the Limit of Insurance. Therefore the
full amount of debris removal expense is (1) While it is being moved or while tempo-
payable in accordance with the terms of rarily stored at another location; and
Paragraph (3).
(2) Only if the loss or damage occurs within
Example #2 30 days after the property is first moved.
Debris Removal Expense $ 30, 000 (1) Assumed by contract or agreement prior
to loss; or
(2) In the event of damage by a Covered property, then the most we will pay under this
Cause of Loss to a building that is Coy- Additional Coverage, for that damaged build-
erect Property, we will pay the increased ing, is the lesser of: $10, 000 or 5% times the
costs incurred to comply with enforce- value of the damaged building as of the time
ment of an ordinance or law in the course of loss times the applicable coinsurance
of repair, rebuilding or replacement of percentage.
damaged parts of that property, subject to
the limitations stated in e.(3) through e.(9) The amount payable under this Additional
of this Additional Coverage. Coverage is additional insurance.
The most will pay under this Additional (9) The costs addressed in the Loss Payment and
(6) we
Valuation Conditions, and the Replacement
Coverage, for each described building Cost Optional Coverage, in this Coverage
insured under this Coverage Form, is
Form, do not include the increased cost
$10, 000 or 5% of the Limit of Insurance attributable to enforcement of an ordinance or
applicable to that building, whichever is law. The amount payable under this Additional
less. If a damaged building is covered un-
der a blanket Limit of Insurance which ap- Coverage, as stated in e.(6) of this Additional
plies to more than one building or item of Coverage, is not subject to such limitation.
f. Electronic Data (4) The most will pay under this Additional
we
does not
c. Valuable Papers And Records (Other Than
(b) This Extension apply to: Electronic Data)
(I) Personal property of others that is (1) You may extend the insurance that ap-
temporarily in your possession in plies to Your Business Personal Property
the course of installing or per-
to apply to the cost to replace or restore
forming work on such property; or the lost information on valuable papers
and records for which duplicates do not
(11) Personal property of others that is exist. But this Extension does not apply to
temporarily in your possession in valuable papers and records which exist
the course of your manufacturing as electronic data. Electronic data has the
or wholesaling activities,
meaning described under Property Not
Covered Electronic Data.
—
(a) This policy expires; (3) If the Causes Of Loss Broad Form ap-
—
Insurance on Your Business Personal The most we will pay for loss or damage
Property and therefore coverage of such under this Extension Is $1, 000, but not more
costs is not additional insurance. than $250 for any one tree, shrub or plant.
These limits apply to any one occurrence,
d. Property Off-Premises regardless of the types or number of items lost
or damaged in that occurrence.
(b) In storage at a location you lease, (a) The trailer is used in your business;
provided the lease was executed after
the beginning of the current policy The trailer is in your care, custody or
(b)
term; or control at the premises described in
the Declarations; and
(c) At any fair, trade show or exhibition.
(c) You have a contractual responsibility
(2) This Extension does not apply to property: to pay for loss or damage to the
trailer.
(a) In or on a vehicle; or
mining application of the Deductible. But the Deducti- The following conditions apply in addition to the Com-
ble will be applied only once per occurrence. mon Policy Conditions and the Commercial Property
Conditions.
Example No. 1:
1• Abandonment
(This example assumes there is no coinsurance penalty.)
There can be no abandonment of any property to
Deductible: $ 250 US.
Limit of Insurance —
Bldg. 1: $ 60, 000 2. Appraisal
Limit of Insurance —
Bldg. 2: $ 80, 000 If weand you disagree on the value of the prop-
erty the amount of loss, either may make writ-
or
Loss to Bldg. 1: $ 60, 100 ten demand for an appraisal of the loss. In this
event, each party will select a competent and im-
Loss to Bldg. 2: $ 90, 000 partial appraiser. The two appraisers will select an
umpire. If they cannot agree, either may request
The amount of loss to Bldg. 1 ($60, 100) Is less than that selection be made by a judge of a court
the sum ($60, 250) of the Limit of Insurance applicable having jurisdiction. The appraisers will state sep-
to Bldg. 1 plus the Deductible. arately the value of the property and amount of
loss. If they fail to agree, they will submit their
The Deductible will be subtracted from the amount of differences to the umpire. A decision agreed to by
calculating the loss payable for Bldg. 1:
loss in any two will be binding. Each party will:
a. Pay its chosen appraiser; and (8) Cooperate with us in the investigation or
settlement of the claim.
b. Bear the other expenses of the appraisal and
umpire equally. b. We may examine any insured under oath,
while not in the presence of any other insured
If there is an appraisal, we will still retain our and at such times as may be reasonably re-
right to deny the claim. quired, about any matter relating to this in-
surance or the claim, including an insured's
3. Duties In The Event Of Loss Or Damage books and records. In the event of an exam-
ination, an insured's answers must be signed.
a. You must see that the following aredone in
the event of loss or damage to Covered 4. Loss Payment
Property:
a. In the event of loss or damage covered by this
(1) Notify the police if a law may have been
Coverage Form, at our option, we will either:
broken.
(4) Take all reasonable steps to protect the agreed or appraised value; or
Covered Property from further damage,
and keep a record of your expenses nec- (4) Repair, rebuild or replace the property
with other property of like kind and quai-
essary to protect the Covered Property,
for consideration in the settlement of the ity, subject to b. below.
claim. This will not increase the Limit of
Insurance. However, we will not pay for We will determine the value of lost or
any subsequent loss or damage resulting damaged property, or the cost of its repair
from a cause of loss that is not a Covered or replacement, in accordance with the
Cause of Loss. Also, if feasible, set the applicable terms of the Valuation Con-
damaged property aside and in the best dition in this Coverage Form or any appli-
possible order for examination, cable provision which amends or super-
sedes the Valuation Condition.
(5) At our request, give us complete inven-
tories of the damaged and undamaged b. The cost torepair, rebuild or replace does not
property. Include quantities, costs, values include the increased cost attributable to
and amount of loss claimed, enforcement of any ordinance or law regulat-
ing the construction, use or repair of any
(6) As often as may be reasonably required, property.
permit us to inspect the property proving
the loss or damage and examine your c. We will give notice of our intentions within 30
books and records.
days after we receive the sworn proof of loss.
Also permit us to take samples of dam- d. We will not pay you more than your financial
aged and undamaged property for in- interest in the Covered Property.
spection, testing and analysis, and permit
us to make copies from your books and
records.
e. We may adjust losses with the owners of lost
or damaged property if other than you. If we
pay the owners, such payments will satisfy
(7) Send us a signed, sworn proof of loss your claims against us for the owners'
containing the information we request to
investigate the claim. You must do this property. We will not pay the owners more
than their financial interest in the Covered
within 60 days after our request. We will
supply you with the necessary forms. Property.
We may elect to defend you against suits (2) Buildings under construction or renovation
arising from claims of owners of property. We are not considered vacant.
will do this at our expense.
b. Vacancy Provisions
g. We will pay for covered loss or damage within
30 days after we receive the sworn proof of If the building where loss or damage occurs
loss, if you have complied with all of the terms has been vacant for more than 60 consecu-
of this Coverage Part and: tive days before that loss or damage occurs:
6.
(f) Attempted theft.
Vacancy
(2) With respect to Covered Causes of Loss
a. Description Of Terms other than those listed in b.(1)(a) through
As used in this Vacancy Condition, the b.(1)(f) above, we will reduce the amount
(1) we would otherwise pay for the loss or
term building and the term vacant have
the meanings set forth in (1)(a) and (1)(b) damage by 15%.
below:
7. Valuation
(2) Appliances for refrigerating, ventilating, (1) Multiply the value of Covered Property
cooking, dishwashing or laundering; or at the time of loss by the Coinsurance
percentage;
(3) Outdoor equipment or furniture.
(2) Divide the Limit of Insurance of the prop-
c. "Stock" you have sold but not delivered at the erty by the figure determined in Step (1);
selling price less discounts and expenses you
otherwise would have had.
(3) Multiply the total amount of loss, before
the application of any deductible, by the
d. Glass at the cost of replacement with safety
figure determined in Step (2); and
glazing material if required by law.
(4) Subtract the deductible from the figure
e. Tenant's Improvements and Betterments at: determined in Step (3).
(1) Actual cash value of the lost or damaged We will pay the amount determined in Step (4)
property if you make repairs promptly. or the limit of insurance, whichever is less. For
the remainder, you will either have to rely on
(2) A proportion of your original cost if you do other insurance or absorb the loss yourself.
not make repairs promptly. We will deter-
mine the proportionate value as follows:
Example No. 1 (Underinsurance):
(a) Multiply the original cost by the num- When: The value of the property is $ 250, 000
ber of days from the loss or damage
to the expiration of the lease; and
The Coinsurance percentage
for it is 80%
(b) Divide the amount determined in (a)
above by the number of days from the
The Limit of Insurance
Installation of improvements to the
for it is $ 100, 000
expiration of the lease.
The Deductible is $ 250
if your lease contains a renewal option,
the expiration of the renewal option period
The amount of loss is $ 40, 000
will replace the expiration of the lease in
this procedure.
Step (1): $250, 000 x 80% $200, 000=
(3) Nothing if others pay for repairs or (the minimum amount of insurance to
meet your Coinsurance requirements)
replacement.
F. Additional Conditions Step (2): $100, 000: $200, 000 =
.50
The following conditions apply in addition to the Corn- Step (3): $40, 000 x .50 =
$20, 000
mon Policy Conditions and the Commercial Property
Conditions. Step (4): $20, 000 —
$250 =
$19, 750
1. Coinsurance We will pay no more than $19, 750. The remaining $20, 250
is not covered.
'
If a Coinsurance percentage is shown in the Dec-
larations, the following condition applies. Example No. 2 (Adequate Insurance):
a. We will not pay the full amount of any loss if When: The value of the property is $250, 000
the value of Covered Property at the time of
loss times the Coinsurance percentage shown The Coinsurance percentage
for it in the Declarations is greater than the for it is 80%
Limit of Insurance for the property.
The Limit of Insurance
Instead, we will determine the most we will for it is $200, 000
pay using the following steps:
The amount of loss is $ 40, 000 a. The term mortgageholder includes trustee.
The minimum amount of insurance to meet b. We will pay for covered loss of or damage to
your Coinsurance requirement is $200, 000 buildings or structures to each mortgage-
($250, 000 x 80%). Therefore, the Limit of holder shown in the Declarations in their order
Insurance in this Example is adequate and no of precedence, as interests may appear.
penalty applies. We will pay no more than
$39, 750 ($40, 000 amount of loss minus the c. The mortgageholder has the right to receive
deductible of $250). loss payment even if the mortgageholder has
started foreclosure or similar action on the
b. If oneLimit of Insurance applies to two or building or structure.
more separate items, this condition will apply
to the total of all property to which the limit d. If we deny your claim because of your acts or
applies, because you have failed to comply with the
terms of this Coverage Part, the mortgage-
Example No. 3: holder will still have the right to receive loss
payment if the mortgageholder:
When: The value of property is:
(1) Pays any premium due under this Cover-
Bldg. at Location No. 1 $ 75, 000 age Part at our request if you have failed
to do so;
Bldg. at Location No. 2 $100, 000
(2) Submits a signed, sworn proof of loss
Personal Property at within 60 days after receiving notice from
Location No. 2 $ 75, 000 us of your failure to do so; and
$250, 000
(3) Has notified of any change in owner-
us
The Coinsurance percentage ship, occupancy or substantial change in
for it is 90% risk known to the mortgageholder.
The Limit of Insurance for Buildings All of the terms of this Coverage Part will then
and Personal Property at
apply directly to the mortgageholder.
Location Nos. 1 and 2 is $180, 000
e. If we pay the mortgageholder for any loss or
The Deductible is $ 1, 000
damage and deny payment to you because of
your acts or because you have failed to corn-
The amount of loss is:
at Location No. 2 $ 30, 000 ply with the terms of this Coverage Part:
Bldg.
(1) The mortgageholder's rights under the
Personal Property at will be transferred to us to the
Location No. 2 $ 20, 000 mortgage
extent of the amount we pay; and
$ 60, 000
(2) The mortgageholder's right to recover the
Step (1): $250, 000 x 90% =
$225, 000 full amount of the mortgageholder's claim
(the minimum amount of insurance to
will not be impaired.
meet your Coinsurance requirements and
to avoid the penalty shown below)
At our option, we may pay to the mortgage-
.80 holder the whole principal on the mortgage
Step (2): $180, 000 4- $225, 000 =
$1, 000 =
$39, 000
f. If wecancel this policy, we will give written
We will pay no more than $39, 000. The remaining $11, 000
is not covered,
notice to the mortgageholder at least:
(1) 10 days before the effective date of can- the policy anniversary date, or any other
cellation if we cancel for your nonpayment policy change amending the Limit of In-
of premium; or surance, times
(2) 30 days before the effective date of can- (2) The percentage of annual increase shown
cellation if we cancel for any other reason. in the Declarations, expressed as a deci-
mal (example: 8% is .08), times
g. If we elect not to renew this policy, we will give
written notice to the mortgageholder at least (3) The number of days since the beginning
10 days before the expiration date of this of the current policy year or the effective
policy, date of the most recent policy change
amending the Limit of Insurance, divided
G. Optional Coverages by 365.
If shown as applicable in the Declarations, the fol-
Example:
lowing Optional Coverages apply separately to each
item. If: The applicable Limit of
Insurance is $100, 000
1. Agreed Value
The annual percentage
a. The Additional Condition, Coinsurance, does increase is 8%
not apply to Covered Property to which this
Optional Coverage applies. We will pay no The number of days
more for loss of or damage to that property since the beginning of
than the proportion that the Limit of Insurance the policy year (or last
under this Coverage Part for the property
policy change) is 146
bears to the Agreed Value shown for it in the
Declarations. The amount of increase
is $100, 000 x .08 x 146
b. If the expiration date for this Optional Cover-
÷. 365 = $ 3, 200
age shown in the Declarations is not extend-
ed, the Additional Condition, Coinsurance, is 3.
reinstated and this Optional Coverage Replacement Cost
expires. a. Replacement Cost (without deduction for de-
c. The terms of this Optional Coverage apply preciation) replaces Actual Cash Value in the
Loss Condition, Valuation, of this Coverage
only to loss or damage that occurs: Form.
(1) On or after the effective date of this Op- b. This Optional Coverage does not apply to:
tionai Coverage; and
c. You may make a claim for loss or damage cost which would have been incurred if the
covered by this insurance on an actual cash building had been rebuilt at the original
value basis instead of on a replacement cost premises.
basis. In the event you elect to have loss or
damage settled on an actual cash value basis, f. The cost of repair or replacement does not
you may still make a claim for the additional include the increased cost attributable to en-
coverage this Optional Coverage provides if forcement of any ordinance or law regulating
you notify us of your intent to do so within 180 the construction, use or repair of any property.
days after the loss or damage.
4. Extension Of Replacement Cost To Personal
d. We will not pay on a replacement cost basis
for any loss or damage:
Property Of Others
(a) Of comparable material and quality; 2. "Pollutants" means any solid, liquid, gaseous or
and
thermal irritant or contaminant, including smoke,
vapor, soot, fumes, acids, alkalis, chemicals and
(b) Used for the same purpose; or
waste. Waste includes materials to be recycled,
reconditioned or reclaimed.
(3) The amount actually spent that is nec-
essary to repair or replace the lost or
3. "Stock" means merchandise held in storage or for
damaged property.
sale, raw materials and in-process or finished
If is rebuilt at a new premises, the goods, including supplies used in their packing or
a building
cost described in e.(2) above is limited to the shipping.
Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and what is
and is not covered.
"
Throughout this policy the words "you" and "your" refer to the Named insured shown in the Declarations. The words "we,
"us" and "our refer to the Company providing this insurance.
Other words and phrases that appear in quotation marks have special meaning. Refer to Section H. — Definitions.
Covered Property, as used in this Coverage Part, pairs to the building or structure; and
means the type of property described in this Sec-
(6) Any of the following types of property
tion, A.1., and limited in A.2., Property Not Cov-
contained within a unit, regardless of
ered, if a Limit of Insurance is shown in the Dec-
larations for that type of property. ownership, if your Condominium Associa-
tion Agreement requires you to insure it:
a. Building, meaning the building or structure
described in the Declarations, including: (a) Fixtures, improvements and altera-
tions that are a part of the building or
(1) Completed additions; structure; and
(3) Leased personal property for which you j. Bulkheads, pilings, piers, wharves or docks;
have a contractual responsibility to in-
sure, unless otherwise provided for under k. Property that Is covered under this or any
Personal Property of Others. other policy in which it is more specifically de-
scribed, except for the excess of the amount
But Your Business Personal Property does due (whether you can collect on it or not) from
not include personal property owned only by a that other insurance;
unitowner.
I. Retaining walls that are not part of a building;
c. Personal Property Of Others that is:
m. Underground pipes, flues or drains;
(1) In your care, custody or control; and
n. Electronic data, except as provided under Ad-
(2) Located in or on the building described in ditional Coverages Electronic Data. Elec-
—
the Declarations or in the open (or in a tronic data means information, facts or corn-
vehicle) within 100 feet of the described puter programs stored as or on, created or
premises. used on, or transmitted to orfrom computer
software (including systems and applications
However, payment for loss of or damage
our software), on hard or floppy disks, CD-ROMs,
to personal property of others will only be for tapes, drives, cells, data processing devices
the account of the owner of the property. or any other repositories of computer soft-
ware which are used with electronically con-
2. Property Not Covered trolled equipment. The term computer pro-
grams, referred to in the foregoing description
Covered Property does not include: of electronic data, means a set of related
electronic instructions which direct the opera-
a. Accounts, bills, currency, food stamps or other tions and functions of a computer or device
evidences of debt, money, notes or securities, connected to it, which enable the computer or
Lottery tickets held for sale are not securities; device to receive, process, store, retrieve or
send data.
b. Animals, unless owned by others and boarded
by you; o. The cost to replace or restore the information
on valuable papers and records, including
c. Automobiles held for sale; those which exist as electronic data. Valuable
papers and records include but are not limited
d. Bridges, roadways, walks, patios or other to proprietary information, books of account,
paved surfaces; deeds, manuscripts, abstracts, drawings and
card index systems. Refer to the Coverage
e. Contraband, or property in the course of il- Extension for Valuable Papers And Records
legal transportation or trade; (Other Than Electronic Data) for limited cov-
erage for valuable papers and records other
f. The cost of excavations, grading, back filling than those which exist as electronic data.
or filling;
p. Vehicles or self-propelled machines (including
g. Foundations of buildings, structures, ma- aircraft or watercraft) that:
chinery or boilers if their foundations are
below: (1) Are licensed for use on public roads; or
(1) The lowest basement floor; or (2) Are operated principally away from the
described premises.
(2) The surface of the ground if there is no
basement. This paragraph does not apply to:
h. Land (including land on which the property Is (a) Vehicles or self-propelled machines
located), water, growing crops or lawns; or autos you manufacture or
warehouse;
I. Personal property while airborne or
waterborne; (b) Vehicles or self-propelled machines,
other than autos, you hold for sale;
q. The following property while outside of We will pay up to an additional $10, 000
buildings: (4)
for debris removal expense, for each lo-
in any one occurrence of physical
(cation,
1) Grain, hay, straw other crops;
or or
loss or damage to Covered Property, if
one or both of the following circum-
(2) Fences, radio or television antennas (in- stances apply:
cluding satellite dishes) and their lead-in
wiring, masts or towers, signs (other than (a) The total of the actual debris removal
signs attached to buildings), trees, shrubs, expense plus the amount we pay for
or plants (other than "stock" of trees, direct physical loss or damage ex-
shrubs or plants), all except as provided in ceeds the Limit of Insurance on the
the Coverage Extensions. Covered Property that has sustained
loss or damage.
3. Covered Causes Of Loss
(b) The actual debris removal expense
See applicableCauses of Loss Form as shown in exceeds 25% of the sum of the de-
the Declarations. ductible plus the amount that we pay
for direct physical loss or damage to
4. Additional Coverages the Covered Property that has sus-
tained loss or damage.
a. Debris Removal
Therefore, if (4)(a) and/or (4)(b) apply, our
from a Covered Cause of Loss that oc- insurance on the Covered Property that
curs during the policy period. The ex- has sustained loss or damage, plus
penses will be paid only if they are re- $10, 000.
ported to us in writing within 180 days of
the date of direct physical loss or damage. (5) Examples
(2) Debris Removal does not apply to costs The following examples assume that
there is no coinsurance penalty.
to:
ter; or
Limit of Insurance $ 90, 000
(b) Remove, restore or replace polluted Amount of Deductible $ 500
land or water.
Amount of Loss $ 50, 000
(3) Subject to the exceptions in Paragraph
(4), the following provisions apply: Amount of Loss Payable $ 49, 500
($50, 000 $500)
-
e. Increased Cost Of Construction (6) The most we will pay under this Addi-
tional Coverage, for each described build-
(1) This Additional Coverage applies only to ing insured under this Coverage Form, Is
buildings to which the Replacement Cost $10, 000 or 5% of the Limit of Insurance
Optional Coverage applies, applicable to that building, whichever is
less. If a damaged building is covered un-
der a blanket Limit of Insurance which ap-
(2) In the event of damage by a Covered
Cause of Loss to a building that is Cov- plies to more than one building or item of
ered Property, we will pay the increased property, then the most we will pay under
this Additional Coverage, for that dam-
costs incurred to comply with enforce-
an ordinance or law in the course
aged building, is the lesser of: $10, 000 or
ment of 5% times the value of the damaged build-
of repair, rebuilding or replacement of
ng as of the time of loss times the appl
ii-
damaged parts of that property, subject to cable coinsurance percentage.
the limitations stated in e.(3) through e.(9)
of this Additional Coverage. The amount payable under this Additional
Coverage is additional insurance.
(3) The ordinance or law referred to In e.(2)
of this Additional Coverage is an ordi- (7) With respect to this Additional Coverage:
nance or law that regulates the construc-
tion or repair of buildings or establishes (a) We will not pay for the increased Cost
zoning or land use requirements at the of Construction:
described premises, and is in force at the
time of loss. (I) Until the property is actually re-
paired orreplaced, at the same or
Under this Additional Coverage, we will another premises; and
(4)
not pay any costs due toan ordinance or
law that: (ii) Unless the repairs or replace-
ment are made as soon as rea-
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Case 0:09-cv-60723-AJ Document 1 Entered on FLSD Docket 05/15/2009 Page 56 of 59
(9) The costs addressed in the Loss Pay- on a computer system (including
ment and Valuation Conditions, and the electronic data) or a network to which
it is connected, designed to damage
Replacement Cost Optional Coverage, in
this Coverage Form, do not include the or destroy any part of the system or
increased cost attributable to enforce- disrupt its normal operation. But there
ment of an ordinance or law. The amount is no coverage for loss or damage
payable under this Additional Coverage, caused by or resulting from manipula-
as stated in e.(6) of this Additional Coy- tibn of a computer system (including
erage, is not subject to such limitation, electronic data) by any employee, in-
cluding a temporary or leased em-
f. Electronic Data ployee, or by an entity retained by you
or for you to inspect, design, install,
(1) Under this Additional Coverage, elec- modify, maintain, repair or replace
tronic data has the meaning described that system.
under Property Not Covered Electronic —
(2) Subject to the provisions of this Additional all loss or damage sustained in any one
we will pay for the cost to re-
Coverage, policy year, regardless of the number of
place or restore electronic data which has occurrences of loss or damage or the
been destroyed or corrupted by a Cov- number of premises, locations or corn-
ered Cause of Loss. To the extent that puter systems involved. if loss payment
electronic data is not replaced or re- on the first occurrence does not exhaust
stored, the loss will be valued at the cost this amount, then the balance is available
of replacement of the media on which the for subsequent loss or damage sustained
electronic data was stored, with blank in but not after that policy year. With
media of substantially identical type.
respect to an occurrence which begins in
one policy year and continues or results in
(3) The Covered Causes of Loss applicable additional loss or damage in a sub-
to Your Business Personal Property apply
Electronic
sequent policy year(s), all loss or damage
to this Additional Coverage —
5. Coverage Extensions
applies, coverage under this
Addi-tional
Coverage Electronic Data is
—
(li) Business personal property, in- (2) Personal property of others in your care,
eluding such property that you custody or control.
newly acquire, located at your
newly constructed or acquired The most we will pay for loss or damage
buildings at the location de- under this Extension is $2, 500 at each de-
scribed in the Declarations; or scribed premises. Our payment for loss of or
damage to personal property of others will
(III) Business personal property that only be for the account of the owner of the
you newly acquire, located at the property.
described premises.
c. Valuable Papers And Records (Other Than
The most we will pay for loss or damage Electronic Data)
under this Extension is $100, 000 at each
building. (1) You may extend the insurance that ap-
plies to Your Business Personal Property
does not apply to: to apply to the cost to replace or restore
(b) This Extension the lost information on valuable papers
Personal property of others that is and records for which duplicates do not
(I) exist. But this Extension does not apply to
temporarily in your possession in valuable papers and records which exist
the course of Installing or per-
as electronic data. Electronic data has the
forming work on such property; or
meaning described under Property Not
Covered Electronic Data.
(ii) Personal property of others that is
—
or wholesaling activities,
plies, coverage under this Extension is
limited to the "specified causes of loss" as
defined in that form, and Collapse as set
(3) Period Of Coverage
forth in that form.
newly acquired or constructed property, plies, coverage under this Extension in-
will end when any of the
coverage cludes Collapse as set forth in that form.
following first occurs:
(4) Under this Extension, the most we will pay (1) Fire;
to replace or restore the lost information is
$2, 500 at each described premises, (2) Lightning;
unless a higher limit Is shown in the
Declarations. Such amount is additional (3) Explosion;
insurance. We will also pay for the cost of
blank material for reproducing the records (4) Riot or Civil Commotion; or
(whether or not duplicates exist), and
(when there is a duplicate) for the cost of (5) Aircraft.
labor to transcribe or copy the records.
The costs of blank material and labor are The most we will pay for loss or damage un-
subject to the applicable Limit of der this Extension is $1, 000, but not more
Insurance on Your Business Personal
than $250 for any one tree, shrub or plant.
Property and therefore coverage of such These limits apply to any one occurrence, re-
costs is not additional insurance.
gardless of the types or number of items lost
or damaged in that occurrence.
d. Property Off-Premises
f. Non-Owned Detached Trailers
(1) You may extend the insurance provided
by this Coverage Form to apply to your You may extend the insurance that ap-
Covered Property while it is away from the (1)
described premises, if it is: plies to Your Business Personal Property
to apply to loss or damage to trailers that
(a) Temporarily at a location you do not you do not own, provided that:
own, lease or operate;
(a) The trailer is used in your business;
(b) In storage at a location you lease,
provided the lease was executed af- (b) The trailer is in your care, custody or
ter the beginning of the current policy control at the premises described in
term; or the Declarations; and
(c) At any fair, trade show or exhibition. (c) You have a contractual responsibility
to pay for loss or damage to the
(2) This Extension does not apply to prop- trailer.
erty:
(2) We will not pay for any loss or damage
(a) In or on a vehicle; or that occurs:
B. Exclusions And Limitations The Deductible will be subtracted from the amount of
loss in calculating the loss payable for Bldg. 1:
See applicable Causes of Loss Form as shown in the
Declarations. $ 60, 100
250
$ 59, 850 Loss Payable Bldg. 1
C. Limits Of insurance —
signs attached to buildings is $1, 000 per sign in any Total amount of loss payable: $59, 850 + 80, 000 =
$60, 000
loss if required by the Coinsurance Condition or the (Limit of insurance)
Agreed Value Optional Coverage. If the adjusted Loss Payable Bldg. 2: —
$80, 000
amount of loss Is less than or equal to the Deductible, (Limit of Insurance)
we will not pay for that loss. If the adjusted amount
of
Total amount of loss payable: $140, 000
loss exceeds the Deductible, we will then subtract the
Deductible from the adjusted amount of loss, and will
E. Loss Conditions
pay the resulting amount or the Limit of Insurance,
whichever is less. Thefollowing conditions apply in addition to the Com-
mon Policy Conditions and the Commercial Property
When the occurrence involves loss to more than one Conditions.
item of Covered Property and separate Limits of In-
surance apply, the losses will not be combined
in de-
the De-
1. Abandonment
termining application of the Deductible. But
ductible will be applied only once per occurrence. There can be no abandonment of any property to
us.
Example No. 1:
Deductible: $ 250 erty or the amount of loss, either may make writ-
ten demand for an appraisal of the loss. In this
Limit of Insurance —
Bldg. 2:
Loss to Bldg. 1: $ 60, 100 partial appraiser. The two appraisers will select an
Loss to Bldg. 2: $ 90, 000 umpire. If they cannot agree, either may request
that selection be made by a judge of a court (7) Send us a signed, sworn proof of loss
having jurisdiction. The appraisers will state sep- containing the information we request to
arately the value of the property and amount of investigate the claim. You must do this
loss. If they fail to agree, they will submit their within 60 days after our request. We will
differences to the umpire. A decision agreed to by supply you with the necessary forms.
any two will be binding. Each party will:
(8) Cooperate with us in the investigation or
a. Pay its chosen appraiser; and settlement of the claim.
b. Bear the other expenses of the appraisal and
b. We may examine any insured under oath,
umpire equally.
while not in the presence of any other insured
If there is an appraisal, we will still retain our right and at such times as may be reasonably re-
to deny the claim. quired, about any matter relating to this insur-
ance or the claim, including an insured's
3. Duties In The Event Of Loss Or Damage books and records. In the event of an exam-
done in
ination, an insured's answers must be signed.
a. You must see that the following are
the event of loss or damage to Covered
4. Loss Payment
Property:
law may have been a. In the event of loss or damage covered by this
(1) Notify the police if a
broken. Coverage Form, at our option, we will either:
(2) Give us prompt notice of the loss or dam- (1) Pay the value of lost or damaged prop-
age. Include a description of the property erty;
involved.
(2) Pay the cost of repairing or replacing the
(3) As soon as possible, give us a descrip-
tion of how, when and where the loss or
l ost or damaged property, subject to b.
below;
damage occurred.
(4) Take all reasonable steps to protect the (3) Take all or any part of the property at an
Covered Property from further damage, agreed or appraised value; or
and keep a record of your expenses nec-
essary to protect the Covered Property, (4) Repair, rebuild or replace the property
for consideration in the settlement of the with other property of like kind and qual-
claim. This will not increase the Limit of ity, subject to b. below.
Insurance. However, we will not pay for
any subsequent loss or damage resulting We will determine the value of lost or dam-
from a cause of loss that is not a Covered
Cause of Loss. Also, if feasible, set the aged property, or the cost of its repair or re-
damaged property aside and in the best placement, in accordance with the applicable
terms of the Valuation Condition in this Cover-
possible order for examination,
age Form or any applicable provision which
(5) At our request, give us complete inven- amends or supersedes the Valuation Condi-
tories of the damaged and undamaged tion.
property. Include quantities, costs, values
and amount of loss claimed. b. The cost to repair, rebuild or replace does not
include the increased cost attributable to en-
(6) As often as may be reasonably required, forcement of any ordinance or law regulating
permit us to inspect the property proving the construction, use or repair of any property.
the loss or damage and examine your
books and records.
c. We will give notice of our intentions within 30
Also permit us to take samples of dam- days after we receive the sworn proof of loss.
aged and undamaged property for in-
spection, testing and analysis, and permit d. We will not pay you more than your financial
us to make copies from your books and interest in the Covered Property.
records.
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settlement, that party must give the other prompt (1) We will not pay for any loss or damage
notice. At your option, the property will be re- caused by any of the following even if
turned to you. You must then return to us the they are Covered Causes of Loss:
amount we paid to you for the property. We will
pay recovery expenses and the expenses to re- (a) Vandalism;
pair the recovered property, subject to the Limit of
Insurance. (b) Sprinkler leakage, unless you have
protected the system against freez-
6. Unit-Owner's insurance ing;
A unit-owner may have other insurance covering (c) Building glass breakage;
the same property as this insurance. This insur- Water damage;
ance is intended to be primary, and not to contrib-(d)
ute with such other insurance.
(e) Theft; or
We waive our rights to recover payment from any Step (3): $40, 000 x .50 =
$20, 000
unit-owner of the condominium that is shown in
Step (4): $20, 000 $250
- =
$19, 750
the Declarations.
We will pay no more than $19,750. The re-
F. Additional Conditions 250 is not covered.
maining $20,
The following conditions apply in addition to the Com-
mon Policy Conditions and the Commercial Property Example No. 2 (Adequate insurance):
Conditions.
When: The value of the property is $ 250, 000
The Coinsurance
I. Coinsurance 80%
percentage for it is
The Limit of Insurance
If Coinsurance percentage is shown in the Dec-
a
for it is $ 200, 000
larations, the following condition applies, $ 250
The Deductible is
The amount of loss is $ 40, 000
a. We will not pay the full amount of any loss if
the value of Covered Property at the time of
The minimum amount of insurance to meet
loss times the Coinsurance percentage shown 000
for it in the Declarations is greater than the your Coinsurance requirement is $200,
000 80%). Therefore, the Limit of
Limit of Insurance for the property. ($250, x
Insurance in this Example is adequate and no
Instead, we will determine the most we wili penalty applies. We will pay no more than
$39, 750 ($40, 000 amount of loss minus the
pay using the following steps: deductible of $260).
b. If oneLimit of Insurance applies to two or d. If we deny your claim because of your acts or
more separate items, this condition will apply because you have failed to comply with the
to the total of all property to which the limit terms of this Coverage Part, the mortgage-
applies, holder will still have the right to receive loss
payment if the mortgageholder:
Example No. 3:
(1) Pays any premium due under this Cover-
When: The value of property is: age Part at our request if you have failed
Bldg. at Location No. 1 $ 75, 000 to do so;
Bldg. at Location No. 2 $ 100, 000
Personal Property at (2) Submits a signed, sworn proof of loss
Location No. 2 $ 75, 000 within 60 days after receiving notice from
$ 250, 000 us of your failure to do so; and
The Coinsurance
percentage for it is 90% (3) Has notified us of any change in owner-
ship, occupancy or substantial change in
The Limit of Insurance risk known to the mortgageholder.
for Buildings and
Personal Property at All of the terms of this Coverage Part will then
Location Nos. 1 and 2 is $ 180, 000 apply directly to the mortgagoholder.
b. If the expiration date for this Optional Cover- a. Replacement Cost (without deduction for de-
age shown in the Declarations is not extend- predation) replaces Actual Cash Value in the
ed, the Additional Condition, Coinsurance, is Loss Condition, Valuation, of this Coverage
reinstated and this Optional Coverage Form.
expires.
b. This Optional Coverage does not apply to:
c. The terms of this Optional Coverage apply
only to loss or damage that occurs: (1) Personal property of others;
(1) On or after the effective date of this Op- (2) Contents of a residence; or
The number of days since the beginning (1) Until the lost or damaged property is ac-
(3)
of the current policy year or the effective tually repaired or replaced; and
date of the most recent policy change
amending the Limit of Insurance, divided (2) Unless the repairs or replacement are
e. We will not pay more for loss or damage on a this Extension may also be shown as applica-
ble. If the Declarations show this Extension as
replacement cost basis than the least of (1),
(2) or (3), subject to f. below: applicable, then Paragraph 3.b.(1) of the
Replacement Cost Optional Coverage is de-
(1) The Limit of Insurance applicable to the leted and all other provisions of the Replace-
lost or damaged property; ment Cost Optional Coverage apply to re-
placement cost on personal property of
(2) The cost to replace the lost or damaged others.
property with other property:
b. With respect to replacement cost on the per-
(a) Of comparable material and quality; sonal property of others, the following limita-
and tion applies:
(b) Used for the same purpose; If an item(s) of personal property of others is
subject to a written contract which governs
(3) The amount actually spent that is neces-
your liability for loss or damage to that item(s),
sary to repair or replace the lost or dam- then valuation of that item(s) will be based on
aged property. the amount for which you are liable under
such contract, but not to exceed the lesser of
If a building is rebuilt at a new premises, the the replacement cost of the property or the
cost described in e.(2) above is limited to the
cost which would have been incurred if the
applicable Limit of Insurance.
building had been rebuilt at the original H. Definitions
premises.
1. "Fungus" means any type or form of fungus, in-
f. The cost of repair or replacement does not in-
clude the increased cost attributable to en- cluding mold or mildew, and any mycotoxins,
forcement of any ordinance or law regulating spores, scents or by-products produced or re-
leased by fungi.
the construction, use or repair of any prop-
erty.
2. "Pollutants" means any solid, liquid, gaseous or
4. Extension Of Replacement Cost To Personal thermal irritant or contaminant, including smoke,
Property Of Others vapor, soot, fumes, acids, alkalis, chemicals and
waste. Waste includes materials to be recycled,
a. If the Replacement Cost Optional Coverage is reconditioned or reclaimed.
shown as applicable in the Declarations, then
Read the entire policy carefully to determine rights, duties and what is
Various provisions in this policy restrict coverage.
and is not covered.
"
shown in the Declarations. The words "we,
Throughout this policy the words "you" and "your" refer to the Named Insured
"us" and "our" refer to the Company providing this insurance.
Definitions.
Other words and phrases that appear in quotation marks have special meaning. Refer to Section G. —
Business Income means the: With respect requirements set forth in the pre-
to the
if
ceding paragraph, you occupy only part of the site at
a. Net Income (Net Profit or Loss before income which the described premises are located, your prem-
taxes) that would have been earned or ises means:
incurred; and
a. The portion of the building which you rent,
b. Continuing normal operating expenses lease or occupy; and
incurred, including payroll.
b. Any area within the building or on the site at
For manufacturing risks, Net Income includes the which the described premises are located, If
net sales value of production, that area services, or is used to gain access
to, the described premises.
Coverage is provided as described and limited below
for one or more of the following options for which a 2. Covered Causes Of Loss, Exclusions And
Limit of insurance is shown in the Declarations: Limitations
a. Business Income including "Rental Value." See applicable Causes of Loss Form as shown in
the Declarations.
b. Business Income other than "Rental Value."
3. Additional Limitation —
interruption Of Corn-
c. "Rental Value." puter Operations
If option a. above is selected, the term Business a. Coverage for Business Income does not apply
Income will include "Rental Value." If option c. above when a "suspension" of "operations" is
is selected, the term Business Income will mean caused by destruction or corruption of
"Rental Value" only. electronic data, or any loss or damage to
electronic data, except as provided under the
If Limits of Insurance are shown under more than one Additional Coverage Interruption Of Corn-
—
electronic instructions which direct the opera- (a) Used in the construction, alterations
tions and functions of a computer or device or additions; or
The Coinsurance condition does not apply (a) Begins onthe date property (except
specifically to such Expenses to Reduce Loss, "finished stock") is actually repaired,
but it is used as described above to de- rebuilt or replaced and "operations"
termine the total amount payable. are resumed; and
and will apply for a period of up to three con- (ii) 30 consecutive days after the
secutive weeks from the date on which the date determined in (1)(a) above.
coverage begins.
However, Extended Business Income
c. Alterations And New Buildings does not apply to loss of Business In-
come incurred as a result of unfavorable
We will pay for the actual loss of Business In- business conditions caused by the impact
come you sustain due to direct physical loss of the Covered Cause of Loss in the
or damage at the described premises caused area where the described premises are
the actual loss of 'Rental Value" you incur in that form, and Collapse as set forth
in that form.
during the period that:
(b) If the Causes Of Loss Broad Form
(a) Begins on the date property is actual-
—
occurred; or Operations.
(d) The Covered Causes of Loss include
(ii) 30 consecutive days after the
date determined in (2)(a) above.
a virus, harmful code or similar in-
struction introduced into or enacted
Business Income
Extended
on a computer system (including
However,
does not apply to loss of "Rental Value"
electronic data) or a network to which
it is connected, designed to damage
incurred as a result of unfavorable busi- or destroy any part of the system or
ness conditions caused by the impact of
the Covered Cause of Loss in the area
disrupt its normal operation. But there
is no coverage for an interruption re-
where the described premises are lated to manipulation of a computer
located.
system (including electronic data) by
any employee, including a temporary
Loss of "Rental Value" must be caused by or leased employee, or by an entity
direct physical loss or damage at the de- retained for you to
by you or inspect,
scribed premises caused by or resulting
design, install, maintain, repair or re-
from any Covered Cause of Loss.
place that system.
e. Interruption Of Computer Operations The most will pay under this Additional
(4) we
(I) Under this Additional Coverage, elec- erations is $2, 500 for all loss sustained in
tronic data has the meaning described
any one policy year, regardless of the
under Additional Limitation Interruption —
If a Coinsurance percentage of 50% or more is If we and you disagree on the amount of Net
shown in the Declarations, you may extend the Income and operating expense or the amount of
insurance provided by this Coverage Part as loss, either may make written demand for an ap-
follows: praisel of the loss. In this event, each party will
select a competent and impartial appraiser.
NEWLY ACQUIRED LOCATIONS
The two appraisers will select an umpire. If they
a. You may extend your Business Income Coy- cannot agree, either may request that selection be
erage to apply to property at any location you made by a judge of a court having jurisdiction. The
acquire other than fairs or exhibitions, appraisers will state separately the amount of Net
Income and operating expense or amount of loss.
b. The most we will pay for loss under this If they fail to agree, they will submit their
Extension is $100, 000 at each location, differences to the umpire. A decision agreed to by
any two will be binding. Each party will:
c. Insurance under this Extension for each newly
acquired location will end when any of the a. Pay its chosen appraiser; and
following first occurs:
b. Bear the other expenses of the appraisal and
(1) This policy expires; umpire equally.
(2) 30 days expire after you acquire or begin If there is an appraisal, we will still retain our right
to construct the property; or
to deny the claim.
If you intend to continue your business, would have taken to resume "operations" as
(8)
you must resume all or part of your "oper- quickly as possible.
ations" as quickly as possible.
4. Loss Payment
b. We may examine any insured under oath,
while not in the presence of any other insured We will pay for covered loss within 30 days after
and at such times as may be reasonably re- we receive the sworn proof of loss, if you have
quired, about any matter relating to this insur- complied with all of the terms of this Coverage
ance or the claim, including an insured's Part and:
books and records. In the event of an exam-
ination, an insured's answers must be signed. a. We have reached agreement with you on the
amount of loss; or
3. Loss Determination
(2) The likely Net Income of the business if tions, the following condition applies in addition to the
no physical loss or damage had occurred, Common Policy Conditions and the Commercial Prop-
but not including any Net Income that erty Conditions.
would likely have been earned as a result
of an increase in the volume of business We will not pay the full amount of any loss if the Limit
due to favorable business conditions of Insurance for Business Income is less than:
caused by the impact of the Covered
Cause of Loss on customers or on other a. The Coinsurance percentage shown for Bus-
businesses; lness Income in the Declarations; times
(4) Other relevant sources of information, in- (2) Operating expenses, including payroll ex-
cluding: penses,
(a) Your financial records and accounting that would have been earned or incurred (had
procedures; no loss occurred) by your "operations" at the
described premises for the 12 months follow-
(b) Bills, invoices and other vouchers; ing the inception, or last previous anniversary
and date, of this policy (whichever is later).
Instead, we will determine the most we will pay using depletion — not percentage depletion; welfare and
the
retirement fund charges based on tonnage; hired
following steps:
trucks).
for
1. Multiply the Net Income and operating expense No. 1 (Underinsurance):
the 12 months following the inception, or last Example
previous anniversary date, of this policy by the When: The Net Income and operating expenses
Coinsurance percentage; for the 12 months following the inception,
or last previous anniversary date, of this
2. Divide the Limit of Insurance for the described
policy at the described premises would
premises by the figure determined in Step 1; and have been $400, 000
3. Multiplythe total amount of loss by the figure The Coinsurance percentage is 50%
determined in Step 2.
The Limit of Insurance is $150, 000
We will pay the amount determined in Step 3 or the
limit of insurance, whichever is less. For the remain- The amount of loss is $ 80, 000
der, you will either have to rely on other insurance or
absorb the loss yourself. Step 1: $400, 000 x 50% = $200, 000
penses, if applicable, shall be deducted from the total Step 2: $150, 000 $200, 000 = .75
of all operating expenses:
Step 3: $80, 000 x .75 =
$60, 000
I. Prepaid freight —
outgoing;
We will pay no more than $60,000. The remaining
2. Returns and allowances; $20, 000 is not covered.
7. Cost of merchandise sold (including transportation The Limit of Insurance is $200, 000
charges);
The amount of loss Is $ 80, 000
8. Cost of other supplies consumed (including trans-
portation charges); The minimum amount of insurance to meet your Coin-
surance requirement is $200, 000 ($400, 000 x 50%).
9. Cost of services purchased from outsiders (not Therefore, the Limit of Insurance in this Example is
employees) to resell, that do not continue under
adequate and no penalty applies. We will pay no more
contract; than $80, 000 (amount of loss).
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b. The most we will pay for loss of Business 3. Business Income Agreed Value
Income is the lesser of:
a. To activate this Optional Coverage:
(1) The amount of loss sustained during the
(1) A Business Income Report/Work Sheet
120 days immediately following the begin-
must be submitted to us and must show
ning of the "period of restoration"; or financial data for your "operations":
lf, in this example, the (1) Within 12 months of the effective date of
actual amount of loss is: this Optional Coverage; or
Days 1-30 $ 40, 000 (2) When you request a change in your Busi-
Days 31-60 20, 000 ness Income Limit of Insurance
at
Example (2) The date when business is resumed a
erty; or
We will pay $40, 000. The remaining $40, 000 is
not covered. (2) Requires any insured or others to test for,
monitor, clean up, remove, contain, treat,
4. Extended Period Of Indemnity detoxify or neutralize, or in any way
effects of
respond to, or assess the
Under Paragraph A.4.d., Extended Business "pollutants."
Income, the number "30" in Subparagraphs (1)(b)
and (2)(b) is replaced by the number shown in the The expiration date of this policy will not cut short
Declarations for this Optional Coverage. the "period of restoration."
Definitions.
Words and phrases that appear in quotation marks have special meaning. Refer to Section F. —
The enforcement of any ordinance or law: (5) Volcanic eruption, explosion or effusion.
But if volcanic eruption, explosion or effu-
sion results in fire, building glass break-
(1) Regulating the construction, use or repair
age orVolcanic Action, we will pay for the
of any property; or
loss or damage caused by that fire, build-
ing glass breakage or Volcanic Action.
(2) Requiring the tearing down of any prop-
erty, including the cost of removing its Volcanic action means direct loss or dam-
debris,
age resulting from the eruption of a vol-
cano when the loss or damage is caused
This exclusion, Ordinance Or Law, applies by:
whether the loss results from:
destruction of property by order of (1) Flood, surface water, waves, tides, tidal
Seizure or
waves, overflow of any body of water, or
governmental authority, their spray, all whether driven by wind or
But if the failure of power or other utility serv- Presence, growth, proliferation, spread or any
ice results in a Covered Cause of Loss, we rot or bacteria.
"
(1)
"
When "fungus, wet or dry rot or bacteria
f. War And Military Action results from fire or lightning; or
(2) Warlike action by a military force, includ- age For "Fungus, Wet Rot, Dry Rot
"
ing action in hindering or defending And Bacteria with respect to loss or darn-
against an actual or expected attack, by age by a cause of loss other than fire or
any government, sovereign or other au- lightning.
thority using military personnel or other
agents; or Exclusions B.1.a. through B.1.h. apply whether or
not the loss event results in widespread damage
(3) Insurrection, rebellion, revolution, usurped or affects a substantial area.
(4) Settling, cracking, shrinking or expansion; (2) You drain the equipment and shut off the
supply if the heat is not maintained.
(5) Nesting or infestation, or discharge or re-
lease of waste products or secretions, by h. Dishonest or criminal act by you, any of your
insects, birds, rodents or other animals.
em-
partners, members, officers, managers, direc-
ployees (including leased employees),
tors, trustees, authorized representatives
or
(6) Mechanical breakdown, including rupture the for
or bursting caused by centrifugal
force. anyone to whom you entrust property
But if mechanical breakdown results in el- any purpose:
evator collision, we will pay for the loss or
(1) Acting alone or in collusion with others;
or
damage caused by that elevator collision.
hours
The following causes of loss to personal (2) Whether or not occurring during the
(7) of employment.
property:
of atmosphere;
This exclusion does not apply to acts of de-
(a) Dampness or dryness struction by your employees (including leased
extremes of tempera-
employees); but theft by employees (including
(b) Changes in or
leased employees) is not covered.
ture; or
Page 3 of 9
CP 10 30 04 02 © ISO Properties, Inc., 2001
Archive
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Case 0:09-cv-60723-AJ Document 1-2 Entered on FLSD Docket 05/15/2009 Page 18 of 50
I. Discharge, dispersal, seepage, migration, re- a. Business Income (And Extra Expense)
dis- Coverage Form, Business Income (Without
lease or escape of "pollutants" unless the
Extra Expense) Coverage Form, Or Extra
charge, dispersal, seepage, migration, re-
lease or escape is itself caused by any of the Expense Coverage Form
"specified causes of loss." But if the dis-
charge, dispersal, seepage, migration, re- We will not pay for:
lease escape of "pollutants" results in a
or
b. Acts or decisions, including the failure to act (3) Any loss caused by orresulting from di-
or decide, of any person, group, organization rect physical loss or damage to radio or
or governmental body. television antennas (including satellite
dishes) and their lead-in wiring, masts or
C. Faulty, Inadequate or defective: towers.
(1) Planning, zoning, development, survey- (4) Any increase of loss caused by or result-
ing, siting; ing from:
(2) Design, specifications, workmanship, re- (a) Delay in rebuilding, repairing or re-
pair, construction, renovation, remodeling, placing the property or resuming "op-
grading, compaction; erations, due to interference at the
"
(b) Paragraph B.1.c., Governmental Ac- any condition or event inside such equipment.
But we will pay for loss of or damage to such
tion;
equipment caused by or resulting from an ex-
(c) Paragraph B.1.d., Nuclear Hazard; plosion of gases or fuel within the furnace of
any fired vessel or within the flues or pas-
(d) Paragraph 8.1.e., Utility Services; sages through which the gases of combustion
and pass.
e. Property thatis missing, where the only evi- c. $2, 500 for patterns, dies, molds and forms.
dence of the loss or damage is a shortage
disclosed on taking inventory, or other in- d. $250 for stamps, tickets, including lottery tick-
stances where there is no physical evidence ets held for sale, and letters of credit.
to show what happened to the property.
These special limits are part of, not in addition to,
f. Property that has been transferred per- to a
the Limit of Insurance applicable to the Covered
son or to a place outside the described prem-
Property.
ises on the basis of unauthorized instructions.
This limitation, C.3., does not apply to Business
2. We will not pay for loss of or damage to the Income coverage or to Extra Expense coverage.
following types of property unless caused by the
"specified causes of loss" or building glass 4. We will not pay the cost to repair any defect to a
breakage:
system or appliance from which water, other lig-
killed uid, powder or molten material escapes. But
e. Animals, and then only if they are or
we will pay the cost to repair or replace dam-
their destruction is made necessary.
aged parts of fire extinguishing equipment If the
b. Fragile articles such as statuary, marbles, damage:
chinaware and porcelains, if broken. This re-
striction does not apply to: a. Results in discharge of any substance from an
automatic fire protection system; or
(1) Glass; or
b. Is directly caused by freezing.
(2) Containers of property held for sale.
However, this limitation does not apply to Bus-
c. Builders' machinery, tools and equipment iness Income coverage or to Extra Expense
owned by you or entrusted to you, provided coverage.
such property is Covered Property.
D. Additional Coverage —
Collapse
However, this limitation does not apply:
The term Covered Cause of Loss includes the Addi-
(1) If the property is located on or within 100 tional Coverage Collapse as described and limited in
—
not
The criteria set forth in 1.a. through 1.d. do
I. With respect to buildings: limit the coverage otherwise provided under this
the presence of such damage is Covered Property caused by such collapse of per-
view, unless
known to an insured prior to collapse; sonal property only if:
d. Weight of people or personal property; a. The collapse was caused by a Cause of Loss
listed in 2.a. through 2.f. above;
e. Weight of rain that collects on a roof;
b. The personal property which collapses is in-
f. Use of defective material or methods in con- side a building; and
struction, remodeling or renovation if the col-
lapse occurs during the course of the con- c. The property which collapses is not of a kind
struction, remodeling or renovation. However, listed in 3. above, regardless of whether that
kind of property is considered to be personal
if thecollapse occurs after construction, re-
modeling or renovation is complete and is property or real property.
caused in part by a cause of loss listed in 2.a.
The coverage stated in this Paragraph 4. does not
through 2.e., we will pay for the loss or dam- and/or
age even if use of defective material
or meth- apply to personal property if marring
is the only damage to that personal
ods, in construction, remodeling or renova- scratching
tion, contributes to the collapse, property caused by the collapse.
Page 7 of 9
CP 10 30 04 02 © ISO Properties, Inc., 2001
Archive
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Case 0:09-cv-60723-AJ Document 1-2 Entered on FLSD Docket 05/15/2009 Page 22 of 50
"
And Bacteria
gus, Wet Rot, Dry Rot If there is covered loss or damage to Covered
"
1. The coverage described in" E.2. and E.6. only Property, not caused by "fungus, wet or dry rot or
when the "fungus, wet or dry rot or bacteria, loss payment will not be limited by the
applies
bacteria is the result of one or more of the terms of this Limited Coverage, except to the ex-
tent that "fungus, wet or dry rot or bacteria
"
that during
occurs the
policy pe-
following causes
riod and
only if all reasonable means were used to causes an increase in the loss. Any such increase
save and preserve the property from further in the loss will be subject to the terms of this Lim-
damage at the time of and after that occurrence. Held Coverage.
Collapse.
Cover-
dry rot or bacteria. As used in this Limited
age, the term loss or damage means: 6. The following, 6.a. or 6.b., applies only if Business
Income and/or Extra Expense coverage applies to
a. Direct loss or damage to Covered
physical the described premises and only if the "suspen-
"
Property caused by 'fungus, wet or dry rot or sion" of "operations" satisfies all terms and condi-
bacteria, including the cost of removal of the tions of the applicable Business Income and/or
"fungus, wet or dry rot or bacteria;
"
c. The cost of testing performed after removal, damage to property caused by "fungus, wet
repair, replacement or restoration of the dam- or dry rot or bacteria, then our payment under
in a 12-month period (starting with the beginning prolongs the "period of restoration, we will
of the present annual policy period). With respect pay for loss and/or expense sustained during
to a particular occurrence of loss which results in the delay (regardless of when such a delay
"fungus, wet or dry rot or bacteria, we will not pay occurs during the "period of restoration"), but
"
"
more than a total of $15, 000 even if the "fungus, such coverage is limited to 30 days. The days
wet or dry rot or bacteria continues to be present need not be consecutive.
or active, or recurs, in a later policy period,
Page 8 of 9
CP 10 30 04 02 © ISO Properties, inc., 2001
Archive
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Case 0:09-cv-60723-AJ Document 1-2 Entered on FLSD Docket 05/15/2009 Page 23 of 50
cost to tear out and replace any part of the build- building or structure is first damaged by a
This Coverage Part is subject to the following conditions, the Common Policy Conditions and applicable Loss Conditions
and Additional Conditions in Commercial Property Coverage Forms.
4. A claim under this Coverage Part. 1. You may have other insurance subject to the
same plan, terms, conditions and provisions as
B. CONTROL OF PROPERTY the insurance under this Coverage Part. If you
do, we will pay our share of the covered loss or
Any act or neglect of any person other than you damage. Our share is the proportion that the
beyond your direction or control will not affect this applicable Limit of Insurance under this Cover-
insurance. age Part bears to the Limits of Insurance of all
insurance covering on the same basis.
The breach of any condition of this Coverage Part at
any one or more locations will not affect coverage at 2. If there is other insurance covering the same loss
any location where, at the time of loss or damage, the
or damage, other than that described in 1. above,
breach of condition does not exist. we will pay only for the amount of covered loss or
All Coverage Parts included in this policy are subject to the following conditions.
1. The first Named Insured shown in the Decla- 1. We have the right to:
rations may cancel this policy by mailing or deliv-
ering to us advance written notice of cancellation. a. Make inspections and surveys at any time;
2. We may cancel this policy by mailing or delivering b. Give you reports on the conditions we find;
to the first Named Insured written notice of can- and
cellation at least:
c. Recommend changes.
a. 10 days before the effective date of cancella-
tion if we cancel for nonpayment of premium;
Or
2. We are obligated to make any inspections,
not
surveys, reports or recommendations and any
b. 30 days before the effective date of cancella- such actions we do undertake relate only to insur-
tion if we cancel for any other reason. ability and the premiums to be charged. We do not
make safety inspections. We do not undertake to
3. We will mail or deliver our notice to the first perform the duty of any person or organization to
Named Insured's last mailing address known to provide for the health or safety of workers or the
us.
public. And we do not warrant that conditions:
4. Notice of cancellation will state the effective date a. Are safe or healthful; or
of cancellation. The policy period will end on that
date. codes
b. Comply with laws, regulations, or
standards.
5. If this is cancelled, we will send the first
policy
Named Insured any premium refund due. If we
cancel, the refund will be pro rata. if the first 3. Paragraphs 1. and 2. of this condition apply not
Named Insured cancels, the refund may be less only to us, but also to any rating, advisory, rate
than pro rata. The cancellation will be effective service or similar organization which makes
even if we have not made or offered a refund. insurance inspections, surveys, reports or
recommendations.
6. If notice is mailed, proof of mailing will be suffi-
cient proof of notice. 4. Paragraph 2. of this condition does not apply to
any inspections, surveys, reports or recommenda-
B. CHANGES tions we may make relative to certification, under
state or municipal statutes, ordinances or regula-
This contains all the agreements between you
policy tions, of boilers, pressure vessels or elevators.
and us concerning the insurance afforded. The first
Named Insured shown in the Declarations is author-
ized to make changes in the terms of this policy with E. Premiums
our consent. This policy's terms can be amended
or
waived endorsement
only by issued by us and made a The first Named Insured shown in the Declarations:
part of this policy.
1. Is responsible for the payment of all premiums;
C. EXAMINATION OF YOUR BOOKS AND RECORDS and
We may examine and audit your books and records 2. Will be the payee for any return premiums we pay.
as they relate to this policy at any time during
the
and to three years afterward.
policy period up
be transferred to
Under This If you die, your rights and duties will
F. Transfer Of Your Rights And Duties but only while acting within
your legal representative Until
Policy the scope of duties as your legal representative.
not be your legal representative
is appointed, anyone having
Your rights and duties under this policy may in the of your property will have
transferred without our written consent except proper temporary custody
but only with respect to that
case of death of an individual named insured, your rights and duties
property.
Page 2 of 2
Copyright, Insurance Services Office, Inc., 1998
IL 00 17 11 98
Archive
86 of 109
Case 0:09-cv-60723-AJ Document 1-2 Entered on FLSD Docket 05/15/2009 Page 28 of 50
OF PREMIUM
MINIMUM PREMIUM ENDORSEMENT PERCENT
Page 1 of 1
CPR 2129 (03/03) Archive
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Case 0:09-cv-60723-AJ Document 1-2 Entered on FLSD Docket 05/15/2009 Page 29 of 50
EARTHQUAKE EXTENSION
B. We will not pay for direct physical loss or damage due to:
1. Earth movement including landslide, mudflow, earth sinking, earth rising or shifting unless directly caused by
earthquake or volcanic eruption.
2. Sprinkler leakage, meaning the leakage or discharge from an automatic sprinkler system, including collapse of a
annual aggregate applies. We will not, in any case, exceed this limit or amount in one disaster, casualty or event, no
matter how many locations are involved. This Limit of insurance applies unless a sublimit
is shown below:
the following:
The provisions of this endorsement apply to all locations covered by this policy, except
Page 1 of 1
CPR 2212 (03/02) Archive
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Case 0:09-cv-60723-AJ Document 1-2 Entered on FLSD Docket 05/15/2009 Page 31 of 50
PROTECTIVE SAFEGUARDS
Protective Safeguards
Prem. Bldg.
No. No. Symbols Applicable
All "P-1" Automatic Sprinkler System
1
1 All
tive system:
are required
1. As a condition of this insurance, you
to maintain the protective devices or services list- (1) Non-automatic fire protective systems;
above. and
ed in the Schedule
"P-9" The protective system described in the 1. Knew of any suspension or impairment in any
above
Schedule. protective safeguard listed in the Schedule
and failed to notify us of the fact; or
section
B. The following is added to the EXCLUSIONS
listed
of: 2. Failed to maintain any protective safeguard
Schedule above, and over which you had
in the
CAUSES OF LOSS BASIC FORM
-
control, In complete working order.
Page 2 of 2
Copyright, Insurance Services Office, Inc., 1997
IL 04 15 04 98
Archive
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Case 0:09-cv-60723-AJ Document 1-2 Entered on FLSD Docket 05/15/2009 Page 33 of 50
FLORIDA CHANGES
Coinsurance ble; or
B. The following provision applies when a
of this
C. The following is added: Provided you have complied with all the terms
for covered loss or
Coverage Part, we will pay
is caused by or
If loss or damage to Covered Property damage:
exclusion ap-
results from Windstorm, the following
the sworn
plies in: (1) Within 20 days after we receive
proof of loss and reach written agreement
1. Broward County; with you; or
the sworn
2. Dade County; (2) Within 30 days after we receive
proof of loss and:
3. Martin County;
(a) There is an entry of a final judgment;
4. Monroe County; or
b. St. Lucie.
Loss Broad Form;
—
of the
1. Paint; or 3. Paragraph A.3.h., SINKHOLE COLLAPSE,
Standard Property Policy
2. Waterproofing material;
are replaced by the following:
applied to the exterior of Buildings,
Page 1 of 2
Copyright, ISO Commercial Risk Services, Inc., 1994
CP 01 25 06 95 Archive
92 of 109
Case 0:09-cv-60723-AJ Document 1-2 Entered on FLSD Docket 05/15/2009 Page 34 of 50
Sinkhole Collapse, meaning loss or damage F. Paragraph F.1. of DEFINITIONS of the Causes of
caused by the sudden sinking or collapse of land Loss Special Form is replaced by the following:
—
underground cavities.
b. Sinking or collapse of land into man-made
underground cavities.
FORM B
B. The premium for this policy is based on the schedule or statement of values on file with us or attached to this policy. If
there is a loss under this policy, we will not pay more than the least of the following:
1. The actual adjusted amount of loss, minus the deductible(s) that applies;
2. The Limit of Insurance or amount of insurance per occurrence shown in the Declarations page of this policy or en-
dorsed onto this policy; or
3. The stated value for the specific property involved in the loss as shown on the latest statement of values on file
with us, minus the deductible(s) that applies.
"A"
EXCLUSION OF CERTAIN COMPUTER RELATED LOSSES
--
A. We will not pay for loss or damage, whether direct or indirect, to "electronic data processing equipment":
of electronic recordings, or
4. Arising from electrical disturbance including electrical
or magnetic damage, disturbance
erasure of electronic recordings;
of:
7. Arising from the failure, malfunction or inadequacy
location.
D. DEFINITIONS
data processing code or
1. "Computer virus" the introduction into
means a computer of any self-replicating electronic
other code that is intended to:
Page 1 of 2
CPR 2187 (10/01) Archive
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Case 0:09-cv-60723-AJ Document 1-2 Entered on FLSD Docket 05/15/2009 Page 37 of 50
b. Alter, contaminate, corrupt, degrade, or destroy the integrity, quality, or performance of data;
b. Alter, contaminate, corrupt, degrade, or destroy the integrity, quality, or performance of data;
denial of services from your computer, your computer network, or web site.
e. Result in the denial of access to or
d. Computer networks;
Page 2 of 2
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1. To be an act of terrorism;
b. To an air carrier (as defined in section 40102 of title 49, United States Code); to a United States flag ves-
sel (or a vessel based principally in the United States, on which United States income tax is paid and
whose insurance coverage is subject to regulation in the United States), regardless of where the loss oc-
curs; or at the premises of any United States mission; and
4. To have been committed by an individual or individuals acting on behalf of any foreign person or foreign inter-
est, as part of an effort to coerce the civilian population of the United States or to influence the policy or affect
the conduct of the United States Government by coercion.
B. "Certified terrorism loss" means loss that results from a "certified act of terrorism."
2. The "terms" of any terrorism exclusion or limitation in coverage that is part of or that is attached to this policy are
amended by the following provision:
This exclusion or limitation In coverage does not apply to "certified terrorism loss."
3. If the Secretary of the Treasury determines that the amount of "certified terrorism loss" has exceeded the maximum
annual liability as set forth by the Federal Terrorism Risk Insurance Act of 2002 or any amendments thereto, we will
not pay for any portion of "certified terrorism loss" that exceeds the maximum annual liability.
4. Neither the "terms" of this endorsement nor the "terms" of any other terrorism endorsement attached to this policy pro-
vide coverage for any loss that would otherwise be excluded by this policy under:
A. Exclusions that address war, military action, or nuclear hazard; or
TERRORISM EXCLUSION
1. We will not pay for loss, damage, cost or expense caused directly or indirectly by "terrorism" or any action taken to
control, prevent, or suppress terrorism. Such loss, damage, cost or expense is excluded regardless of any other cause
or event that contributes concurrently or in any sequence to this loss.
utility services which appears to be for political, religious, economic, cultural, ethnic, ecological or racial ends;
B. The use or threatened use of force, violence or criminal conduct which appears to be for
political, religious, eco-
nomic, cultural, ethnic, ecological or racial ends;
C. The use or threatened use of force, violence or criminal conduct for the apparent purpose of or with the result of
harming or intimidating a civilian population;
D. The use or threatened use of biological, chemical or nuclear substances for the apparent purpose of or with the
result of harming or intimidating a civilian population;
E. Any act or threatened act of force, violence or criminal conduct by any person or persons acting on behalf of or in
connection with any organization with a stated goal of overthrowing or influencing the policy of any government,
whether lawful or otherwise; and/or
F. Any act or threatened act of force, violence or criminal conduct that has been labeled, identified or described as a
terrorist act by the executive branch of the United States government.
2. Fire Exception
The following provision applies only where relevant state law requires coverage for fire losses resulting from acts of
terrorism, and where a premium for such has been paid.
If an act of terrorism results in fire, we will pay for the loss or damage caused by that fire. This exception for fire applies
only to direct loss or damage by fire to covered property. This exception does not apply to coverage for loss of
earnings, extra expense, or fire legal liability.
3. Neither the "terms" of this endorsement nor the "terms" of any other terrorism endorsement attached to this policy
provide coverage for any loss that would otherwise be excluded by this policy under:
98 of 109
Case 0:09-cv-60723-AJ Document 1-2 Entered on FLSD Docket 05/15/2009 Page 40 of 50
1. The federal Terrorism Risk Insurance Program ("Program") established by the Terrorism Risk Insurance Act of
2002, terminates; or
2. The Program is renewed, extended or otherwise continued in effect without a requirement to make terrorism
coverage available to you and with changes that
A. Paragraph 2. of the Cancellation Common Policy (2) On the basis of filing of claims for partial
Condition is replaced by the following: loss caused by sinkhole damage, regard-
less of whether this policy has been the
2. Cancellation For Policies In Effect 90 Days Or subject of a sinkhole claim, or on the ba-
Less sis of the risk associated with the occur-
rence of such a claim. However, we may
a. If thispolicy has been in effect for 90 days or cancel this policy if:
less, may cancel this policy by mailing or
we
delivering to the first Named Insured written (a) The total of such property insurance
notice of cancellation, accompanied by the claim payments for this policy ex-
specific reasons for cancellation, at least: ceeds the current policy limits of cov-
erage for property damage; or
(1) 10 days before the effective date of can-
cellation if we cancel for nonpayment of (b) You have failed to repair the structure
premium; or in accordance with the engineering
recommendations upon which any
(2) 20 days before the effective date of can- loss payment or policy proceeds were
cellation if we cancel for any other rea- based.
son, except we may cancel immediately if
there has been: B. The following is added to the Cancellation Common
Policy Condition:
(a) A matorial misstatement or misrepre-
sentation; or 7. Cancellation For Policies In Effect For More
Than 90 Days
(b) A failure to comply with underwriting
requirements established by the a. If this policy has been in effect for more than
insurer. 90 days, we may cancel this policy only for
one or more of the following reasons:
b. We may not cancel:
(1) Nonpayment of premium;
(1) On the basis of property insurance claims
that are the result of an act of God, unless (2) The policy was obtained by a material
we can demonstrate, by claims frequency misstatement;
or otherwise, that you have failed to take
action reasonably necessary as request- (3) There has been a failure to comply with
ed by usprevent recurrence of damage
to underwriting requirements established by
to the insured property; or the insurer within 90 days of the effective
date of coverage;
100 of 109
Case 0:09-cv-60723-AJ Document 1-2 Entered on FLSD Docket 05/15/2009 Page 42 of 50
(4) There has been a substantial change in (a) Cancellation is for one or more of the
the risk covered by the policy; reasons stated in 7.a.(2) through
7.a.(7) above; and
(5) The cancellation is for all insureds un-
der such policies for a given class of (b) This policy covers a residential struc-
insureds; ture or its contents.
(7) On the basis of filing of claims for partial a. 90 days prior to the expiration of the policy if
loss caused by sinkhole damage, or on
this policy covers a residential structure or its
the basis of the risk associated with the
occurrence of such a claim, if:
contents; or
(1) 10 days before the effective date of can- b. On the basis of filing of claims for partial loss
collation if cancellation is for nonpayment caused by sinkhole damage, regardless of
of premium; or whether this policy has been the subject of a
sinkhole claim, or on the basis of the risk as-
45 days before the effective date of sociated with the occurrence of such a claim.
(2) can-
cellation if: However, we may refuse to renew this policy
if:
101 of 109
Case 0:09-cv-60723-AJ Document 1-2 Entered on FLSD Docket 05/15/2009 Page 43 of 50
9025 N. Lindbergh Drive, Peoria, Illinois 61615 as the person to whom the said
Superintendent, Commissioner, or Director
of Insurance is authorized to mail such process or a true copy thereof, in
compliance with the applicable statutes governing
said service of process in the state or jurisdiction in which a cause of action under this contract of insurance arises.
RIL 099
•
As part of our continuing effort to provide you with the best service available,
ALL CLAIMS under this policy are to be reported immediately to:
103 of 109
Case 0:09-cv-60723-AJ Document 1-2 Entered on FLSD Docket 05/15/2009 Page 45 of 50
EXHIBIT
104 of 109
Case 0:09-cv-60723-AJ Document 1-2 .f 50
E0erAoop Fb5p Docket 05/15/2009 Pag- A
0
--. -‘
) Policy Declarations
.
.
.1 IL
. T}A
30LICY PERIOD
Vhen Coverage Begins: 09/07/2005 12:01 A. M. Standard Time At Named Insured's Address
Vhen Coverage Ends: 09/07/2006 12:01 A. M. Standard Time At Named Insured's Address
ATTACHED FORMS
This policy is completed by the following: BB-5W58a (05/98) and forms and endorsements attached thereto.
Authorization Information
Countersigned by:
NO FLATCANCE_ I -
I
•
hete,
SLPD (4/03)
105 of 109
EXHIBIT "B"
Case 0:09-cv-60723-AJ Document 1-2 Entered on FLSD Docket 05/15/2009 Page 47 of 50
) •
ACE USA,
Common Policy Declarations
Company Name: Westchester Surplus Lines Insurance Company
SYM: FS Policy ID: D35910177 001
Named Insured & Mailing Address Producer's Name & Address
El Ad Residences at Miramar
SWETT & CRAWFORD CORP
2480 West Preserve Way 2 WALL STREET
Miramar FL 33025 10TH FLOOR
NEW YORK NY 10005
65431W-NEW
) t )
EXCESS SCHEDULE & MANUSCRIPT FORM
ITEM
8. (A) PRIMARY LIMITS: $2, 000, 000 per occurrence and in the annual aggregate
as respects Windstorm
FLOOD: N/A
ACE092 (05-99)
107 of 109
Case 0:09-cv-60723-AJ Document 1-2 Entered on FLSD Docket 05/15/2009 Page 49 of 50
)
10. EXCESS 'LIMITS: $8, 000, 000 per occur ce excess of $2, 000, 000 per
occurrence exce ^'.500, 000 p:r occurrence and In the
annual aggregate as: • -c Windstorm excess of
$2, 000, 000 per occurrence and In the annual aggregate
as respects Windstorm
ACE092 (05-99)
108 of 109
09-607e2a0C41164ORRANUMGALII-EY. Entered on FLSD Docket 05/15/2009 FIP-45W5016,350
ELECTRD NIC
DEFENDANTS
(a) PLAINTIFFS
COMPANI—
I. (CA R K U.S. WIN CT
op?, 0 Fa Fj....A.
EL-AD RESIDENCES AT MIRAMAR CONDOMINIUM MT. HAWLEY INSURANCE
ASSOCIATION, INC. SURPLUS LINES INSURANCE COMPANY
Plaintiff BROWARD County of Residence of First Listed Defendant
(b) County of Residence of First Listed
(EXCEPT IN U.S. PLAINTIFF CASES) (IN U.S. PLAINTIFF CASES ONLY)
(d) Check County Where Action Arose: 0 MIAMI- DADE 0 MONROE 16 BROWARD 0 PALM BEACH 0 MARTIN 0 ST. LUCIE 0 INDIAN RIVER 0 OKEECHOBEE
HIGHLANDS
II. BASIS OF JURISDICTION (Place an "X" in One Box Only) III. CITIZENSHIP OF PRINCIPAL PARTIES(Place an "X" in One Box for Plaintiff
0 2 U.S. Government /3 4 Diversity Citizen of Another State 0 2,t1 2 Incorporated and Principal Place 0 5 l0 5
of Business In Another State
Defendant
(Indicate Citizenship of arties in Item III)
4,47 CV 407a3
0 6
Foreign Country
g 110 Insurance PERSONAL INJURY PERSONAL INJURY 0 610 Agriculture 0 422 Appeal 28 USC 158 0 400 State Reapportionment
0 362 Personal Injury 3 620 Other Food & Drug 0 423 Withdrawal 0 410 Antitrust
0 120 Marine 3 310 Airplane -
0 315 Airplane Product Med. Malpractice 0 625 Drug Related Seizure 28 USC 157 3 430 Banks and Banking
0 130 Miller Act
365 Personal Injury of Property 21 USC 881 0 450 Commerce
0 140 Negotiable Instrument Liability 0 -
0 150 Recovery of Overpayment 0 320 Assault, Libel & Product Liability 0 630 Liquor Laws I PROPERTY RIGHTS 3 460 Deportation
0 640 R.R. & Truck 0 820 Copyrights 0 470 Racketeer Influenced and
& Enforcement ofludgment Slander 0 368 Asbestos Personal
0 330 Federal Employers' Injury Product 0 650 Airline Regs. 0 830 Patent Corrupt Organizations
0 151 Medicare Act
0 840 Trademark 0 480 Consumer Credit
0 152 Recovery of Defaulted Liability Liability 0 660 Occupational
Safety/Health 3 490 Cable/Sat TV
Student Loans 0 340 Marine PERSONAL PROPERTY
0 370 Other Fraud 0 690 Other 0 810 Selective Service
(Excl. Veterans) 0 345 Marine Product
0 153 Recovery of Overpayment Liability 0 371 Truth in Lending I LABOR SOCIAL SECURITY 0 850 Securitics/Commodities/
0 380 Other Personal 0 710 Fair Labor Standards 0 861 HIA(1395ff) Exchange
of Veteran's Benefits 0 350 Motor Vehicle
Property Damage Act Lung (923)
0 862 Black 0 875 Customer Challenge
0 160 Stockholders' Suits 0 355 Motor Vehicle
720 Labor/Mgmt. Relations 0 863 DIWC/DIWW (405(g)) 12 USC 3410
0 190 Other Contract Product Liability 0 385 Property Damage 0
0 360 Other Personal Product Liability 0 730 Labor/Mgmt.Reporting 0 864 SS1D Title XVI 0 890 Other Statutory Actions
0 195 Contract Product Liability
0 196 Franchise Injury & Disclosure Act 0 865 RSI (405(g)) 0 891 Agricultural Acts
740 Railway Labor Act FEDERAL TAX SUITS 0 892 Economic Stabilization Act
I REAL PROPERTY CIVIL RIGHTS PRISONER PETITIONS 0
0 (U.S. Plaintiff
870 Taxes 0 893 Environmental Matters
0 210 Land Condemnation 0 441 Voting 0 510 Motions to Vacate 0 790 Other Labor Litigation
Sentence 0 791 Empl. Ret. Inc. Security Defendant)
or 0 894 Energy Allocation Act
0 220 Foreclosure 0 442 Employment
Act 0 871 IRS Third Party 0
Habeas Corpus:
---
0 230 Rent Lease & Ejectment 0 443 Housing/ 895 Freedom of Information Act
Accommodations 0 530 General 26 USC 7609
3 240 Torts to Land
I I IMMIGRATION 0 900 Appeal of Fee Determination
0 245 Tort Product Liability D 444 Welfare 0 535 Death Penalty
Under Equal Access to Justice
445 Amer. w/Disabilities -
462 Naturalization
0 290 All Other Real Property 0 0 540 Mandamus & Other 0 . •
Employment Application
446 Amer. w/Disabilities -
0
463 Habeas Corpus-Alien
0 0 550 Civil Rights Detainee
Other
465 Other Immigration 0
950 Constitutionality of State
0 440 Other Civil Rights 0 555 Prison Condition 0 Statutes
Actions
alto District
V. ORIGIN (Place an "X" in One Box Only) Transferred from Ikuprefro
ill 1 Original 0 2 Removed from Cl 3 Re-filed- n 4 Reinstated or n
—
s
- another district CI 6 Multidistrict
Litigation
0 7 Maistratine
Proceeding State Court (see VI below) Reopened (specify) Judgment
Cite the U.S. Civil Statute under which you and Write Brief Statement of Cause (Do not cite jurisdictional statutes unless
are filing a
diversity):
VII. CAUSE OF ACTION 28 USC 1332. There is complete diversity of citizenship and the amount in controversy exceeds $75, 000
exclusive of interest. costs and attorney's fees. CI
LENGTH OF TRIAL via 10 days estimated (for both sides to try entire case)
0 DEMAND $ CHECK YES only if demanded in complaint:
VIII. REQUESTED IN CHECK IF THIS IS A CLASS ACTION
COMPLAINT: UNDER F.R.C.P. 23 JURY DEMAND: 94 Yes 0 No
.....-----,
AMOUNT #
109 of 109,