AIG Property Casualty Company v. William H Cosby et al

Filing 1

COMPLAINT Receipt No: 0973-15982178 - Fee: $400, filed by Plaintiff AIG Property Casulaty Company. (Attachments: #1 Exhibit A to Complaint, #2 Exhibit B to Complaint, #3 Exhibit C to Complaint) (Attorney James P Wagoner added to party AIG Property Casulaty Company(pty:pla))(Wagoner, James)

Exhibit C Page 000191

Exhibit C Page 000192

Dear Policyholder:
Thank you for placing your Personal Excess Liability coverage with AIG Private Client
Group. We realize you have a choice of carriers and we appreciate your business. Please
find enclosed your Personal Excess Liability renewal policy.
As you know AIG Private Client Group strives to bring the broadest coverage available to
our policyholders. That's why we are excited to announce we have enhanced our
Not-for-Profit Board Liability Protection .
Not-for-Profit Board Liability Protection continues to offer up to $1,000,000 of protection
for our Personal Excess Liability policyholders should they face litigation as a board
member of a not-for-profit organization. We have expanded the coverage to make it a
more robust coverage, as outlined below.

Previous Coverage

1. Covered only organizations who fall under
the Internal Revenue Code 501(c)(3).

Enhanced Coverage

In addition to 501(c)(3) organizations which fall
under the Internal Revenue Codes 501(c)(4) and
501(c)(7) are now included.
Such as:
•
•
•
•
•
•

Civic groups
Country clubs
Condominiums or co-ops
Cultural and performing arts institutions
Religious organizations
Alumni and Youth associations

2. Did not cover organizations with more
than 75% of their annual revenue spent
on fundraising.

Covers organizations that expend more than
75% of their annual revenue on fundraising.

3. Only covered policyholder if they served
as the Director of the not-for-profit
organization's board

Covers policyholders if they are of dual capacity
on the board. example: Director and Officer.

4. Did not drop down to become primary
coverage if aggregate limits under the
policy providing the required underlying
coverage had been exhausted by other
claims against the entity.

The enhanced coverage, as explained in the policy, will drop down to become primary coverage
should the required underlying coverage be exhausted by other claims against the entity.

Not-for-Profit Board Liability Protection is currently included in your enclosed renewal
policy. This coverage enhancement is billed to you at a cost of
. You may remove
Not-for-Profit Board Liability Protection by simply contacting your insurance agent or
broker and asking them to remove the coverage enhancement. For more information on
Not-for-Profit Board Liability Protection or the other products and services AIG Private
Client Group provides please visit us online at www.aigpcg.com.
Coverage provided by the member companies of the American International Group, Inc. (AIG) The descriptions contained
herein are summaries only. Please see actual policy for full terms, conditions and exclusions. All submissions are subject
to underwriting guidelines. Coverage may not be available in all jurisdictions.

PEL-CLRE-LTR (06/06)

Exhibit C Page 000193

AIG Property Casualty Company
(Name of issuing company)

Renewal

Effective: 01/01/14

PERSONAL EXCESS LIABILITY DECLARATIONS PAGE
Your Declarations Page shows at a glance the coverage you have and your premium. Your Declarations Page is part of your policy.
Please read your policy carefully, including your Declarations Page and any attached Endorsements, for a description of your
coverage.

Policy Number
PCG 0006235889

Policy Period 01/01/2014 - 01/01/2015

Name of Insured and Mailing Address
William H & Camille Cosby
c/o Momentous Ins Brokerage
5990 Sepulveda Blvd #550
Van Nuys, CA 91411

Agency Name, Address, Phone # & Code
Momentous Insurance Brokerage
5990 Sepulveda Blvd.
Suite #550
Van Nuys, CA 91411

At 12:01 A.M. standard time at your mailing address shown below

[phone]

0051601

"YOU WILL BE BILLED SEPARATELY FOR ANY PREMIUM DUE".
A. PERSONAL EXCESS LIABILITY COVERAGE LIMIT
Excess Uninsured/Underinsured Motorist Limit

$ 35,000,000
$ 10,000,000

B. LIMITED EMPLOYMENT PRACTICES LIABILITY LIMIT
Annual Aggregate

$ Not Applicable

Per Wrongful Employment Act

$ Not Applicable

Deductible

$ Not Applicable

C. LIMITED CHARITABLE BOARD DIRECTORS AND TRUSTEES
LIABILITY COVERAGE
Annual Aggregate

$ 1,000,000

Per Wrongful Act

$ 1,000,000

Required Underlying Insurance

Minimum Required Underlying Limits

1. Personal Liability, Homeowners or

Bodily Injury/Property Damage
Combined Single Limit

$300,000 each occurrence

2. Private Passenger Auto and Licensed
Recreational Vehicles

Bodily Injury and Property Damage or

$250,000
$500,000
$ 25,000
$300,000

Bodily injury each person
Bodily injury each accident
Property damage each accident
each accident

$250,000
$500,000
$ 25,000
$300,000

Bodily injury each person
Bodily injury each accident
Property damage each accident
each accident

Comprehensive Personal Liability

Combined Single Limit:
Uninsured/Underinsured Motorist
Protection

Bodily Injury and Property Damage or
Combined Single Limit:

PEL-DEC (03/06)

Exhibit C Page 000194

AIG Property Casualty Company
(Name of issuing company)

Renewal

Effective: 01/01/14

PERSONAL EXCESS LIABILITY DECLARATIONS PAGE - CONTINUED
Policy Number
PCG 0006235889

Policy Period 01/01/2014 - 01/01/2015
At 12:01 A.M. standard time at your mailing address shown below

Required Underlying Insurance: Continued
3. Watercraft
Less than 26 feet and less than 50 hp

Minimum Required Underlying Limits

Combined Single Limit:

$300,000 each occurrence

26 - 42 feet

Combined Single Limit:

$500,000 each occurrence

43 - 54 feet

Combined Single Limit:

$500,000 each occurrence

55 - 75 feet and Hull value
up to $1,000,000

Combined Single Limit:

$1,000,000 each occurrence

Over 75 feet and Hull value
up to $1,000,000

Combined Single Limit:

$1,000,000 each occurrence

With a Hull value
greater than $1,000,000

Combined Single Limit:

Hull Value

4. Unlicensed Recreational Vehicles

Bodily Injury and Property Damage or
Combined Single Limit:

$300,000 each occurrence

5. Employers Liability

Combined Single Limit

$100,000 each occurrence

6. Limited Charitable Board
Directors and Trustees Liability
Liability

Combined Single Limit

$1,000,000 each occurrence

FORMS AND ENDORSEMENTS:
PEL-MA (03/06), PEL-CLRE-LTR (06/06), 78052 (01/13), PEL-EPLI-MA (07/01), PEL-FUNEX-MA(07/02),
PEL-SDCE-MA(7/01)

Total Premium $ 29,429.00

PEL-DEC (03/06)

Exhibit C Page 000195

AIG Property Casualty Company
(Name of issuing company)

Policy Number: PCG 0006235889

Schedule of Underlying Insurance
Homeowners

Location

Insuring Company

1

2

3

4

5

6

7

8

9

10

11

PEL-SCHED (05/10)

Exhibit C Page 000196

AIG Property Casualty Company
(Name of issuing company)

Policy Number: PCG 0006235889

Schedule of Underlying Insurance
Homeowners

Location

Insuring Company

12

13

14

15

16

17

18

19

20

PEL-SCHED (05/10)

Exhibit C Page 000197

AIG Property Casualty Company
(Name of issuing company)

Policy Number: PCG 0006235889

Schedule of Underlying Insurance

Private Passenger Auto and Licensed Recreational Vehicles
Description

Insuring Company

1
2
3
4
5

Unlicensed Recreational Vehicles
Description

Insuring Company

NONE

Yacht and Personal Watercraft
Description
NONE

PEL-SCHED (05/10)

Insuring Company

Exhibit C Page 000198

NOTICE

To report a claim, please contact:
1-888-760-9195

PCG-CL NO (06/06)

Exhibit C Page 000199

POLICYHOLDER NOTICE
Thank you for purchasing insurance from a member company of American
International Group Inc. (AIG). The AIG member companies generally pay
compensation to brokers and independent agents, and may have paid
compensation in connection with your policy. You can review and obtain
information about the nature and range of compensation paid by AIG member
companies to brokers and independent agents in the United States by visiting our
website at www.aig.com/producercompensation or by calling AIG at
1-800-706-3102.
You may also get information concerning compensation paid to your broker or
agent by contacting them directly.

91222 PCG (04/13)

© American International Group, Inc. All rights reserved.

Exhibit C Page 000200

Page 1

YOUR PERSONAL EXCESS LIABILITY POLICY
QUICK REFERENCE
Declarations Page
Your Name and Address
Policy Period
Policy Limit
Premium
Forms
Required Underlying Insurance
And Limits for Covered
Locations, Vehicles and Watercraft
Schedule of Underlying Insurance
COVERAGE IS PROVIDED BY THE AMERICAN INTERNATIONAL GROUP, INC., MEMBER
COMPANY NAMED IN THE DECLARATIONS PAGE . EACH IS A STOCK COMPANY.
Policy Provisions

Beginning on Page

PART I -

Definitions

1

PART II -

What is Covered

4

PART III - Limits

7

PART IV -

8

Defense Coverage and Claim Expense

PART V - What is Not Covered - Exclusions

9

PART VI -

Your Duties

14

PART VII-

Conditions

16

The Contract together with the Declarations Page and Endorsements, if any,
complete the Policy.

PEL-MA (03/06)

Exhibit C Page 000201

THIS POLICY IS NOT COMPLETE WITHOUT A DECLARATIONS PAGE

PERSONAL EXCESS LIABILITY COVERAGE - POLICY PROVISIONS
The insurance company named on your Declarations Page will provide the insurance described in
this policy. You agree to pay the premium and comply with your responsibilities described in this
policy.
Various provisions in this policy restrict or exclude coverage. Read the entire policy carefully to
determine your rights and duties, and what is and is not covered. We have no duty to provide
coverage unless there has been full compliance with policy PART VI - YOUR DUTIES and PART VII CONDITIONS.
PART I - DEFINITIONS
Words with special meanings are defined here or in the part of the policy where they are used.
Throughout the policy, defined terms will be bolded when used.
In this policy, the words "you", "your" and "yours" mean the person or persons named on the
Declarations Page and his or her spouse who lives in the same household. The words "we", "us",
"our" and "ours" mean the insurance company named on the Declarations Page. Also, in this policy,
the word(s):
Aircraft

means any contrivance used or designed for flight, except model or hobby craft not
used or designed to carry people or cargo.
Auto
means any motorized land vehicle which requires motor vehicle registration or
operator licensing. This includes self-propelled motor homes, motorcycles and
attached trailers or semi-trailers.
Bodily Injury
means physical bodily harm, including sickness or disease that results from it, and
required care, loss of services or resulting death.
means a part-time or full-time trade, occupation or profession, including farming or
Business
ranching, other than incidental business .
Continuity
means the first date that we provided to the insured person Limited Charitable Board
Directors and Trustees Liability coverage whether under this policy or under any
Date
other policy issued by us incepting before the inception date of this policy, and
continuously renewed to the inception date of this policy.
means the sum required to satisfy any claim covered by this policy, whether settled
Damages
and agreed to in writing by us or resolved by judicial review.
Discrimination means violation of a person's civil rights with respect to such person's race, color,
national origin, religion, gender, marital status, age, sexual orientation or preference,
physical or mental condition, or any other protected class or characteristic
established by any federal, state or local statutes, rules or regulations.
Directormeans a director, trustee, trustee emeritus or governor of a qualifying organization
who also holds the position of an unpaid, part-time officer of the qualifying
Officer
organization for the period of time such individual holds both positions.
means:
Director and
Trustee Claim a. A written demand for monetary relief; or
b. A civil, criminal, regulatory or administrative proceeding for monetary or
non-monetary relief which is commenced by:
(i) service of a complaint or similar pleading alleging a wrongful employment
act;
(ii) a return of a criminal indictment; or
(iii) a receipt or filing of a notice of charges.
means damages and those amounts properly paid under PART IV - DEFENSE
Director and
Trustee Loss COVERAGE AND CLAIM EXPENSE, SECTION A. Director and trustee loss also
specifically includes any "Excess Benefits" penalty assessed in the amount of 10%
by the Internal Revenue Service ("IRS") against you for your involvement in the
award of an "Excess Benefit". The term "Excess Benefit" means an excess benefit
as defined in the Taxpayer Bill of Rights Act 2, 26 U.S.C. 4958.
means an allegation of, or your discovery of, a wrongful employment act committed
Employment
against your private staff that has resulted in or, in your good faith opinion, is
Crisis
reasonably likely to result in a civil action against you or a family member.
PEL-MA (03/06)

Page 1 of 18
Exhibit C Page 000202

Family
Member

means a person related to you by blood, marriage or adoption that lives in your
household, including a ward or foster child.
Means, for a qualifying organization , (1) entering into proceedings in bankruptcy; or
Financial
(2) becoming a debtor in possession; or (3) the taking of control, the supervision of,
Insolvency
of the managing or liquidating the financial affairs of such entity by a receiver,
conservator, liquidator, trustee, rehabilitator, or similar official.
Follow
means that the coverage provided under this policy shall apply to the extent it is
provided under required underlying insurance, following the terms, definitions,
Form
conditions and exclusions of the required underlying insurance. The damages
payable are in excess of the required underlying insurance exhausted by payments of
covered claims. If a provision of the required underlying insurance policy conflicts
with a provision of this policy, this policy's provision shall apply. In any event, for
coverages designated as Following Form, this policy will not provide broader
coverage than provided by the required underlying insurance policy.
means a business activity that does not produce gross revenues in excess of
Incidental
$10,000 in any year, has no employees subject to workers' compensation or other
Business
similar disability laws, and conforms to federal, state and local laws. Incidental
business includes the business of farming provided that it does not involve
employment of others for more than 1,250 hours of farm work during the Policy
Period, and does not produce more than $25,000 in gross annual revenues from the
raising or care of animals or agriculture. A qualifying organization is not considered
an incidental business .
means a person, such as a babysitter, hired for casual employment by you, working
Incidental
less than 15 hours per week.
Worker
means:
Insured
Person
a. You or a family member;
b. An additional insured named in the policy; or
c. Any person given permission by you or a family member to use a vehicle or
watercraft covered under this policy with respect to their legal responsibility
arising out of its use.
For the purposes of the Limited Charitable Board Directors and Trustees Liability
Coverage, insured person means you.
means a person employed by a firm under an agreement between you and the firm,
Leased
to perform duties related to the conduct of your domestic, personal or incidental
Workers
business .
means any actual or alleged sexual harassment or unlawful discrimination, or the
Nonviolation of the civil rights of a person relating to such sexual harassment or
Employment
Discrimination discrimination, when such acts are alleged to be committed against anyone other
than a director, trustee, trustee emeritus, governor, employee or volunteer of the
qualifying organization.
Occurrence
means:
a. An accident, including continuous or repeated exposure to substantially the
same general harmful conditions, which first results during the Policy Period in
bodily injury or property damage ; or
b. An offense, including a series of related offenses, committed during the Policy
Period that results in personal injury .
means the following injuries, or resulting death:
Personal
injury
a. Bodily injury;
b. Wrongful detention, false imprisonment or false arrest;
c. Shock, emotional distress, mental injury;
d. Invasion of privacy;
e. Defamation, libel or slander;
f. Malicious prosecution;
g. Wrongful entry or eviction; or
h. Assault and battery when committed with the intent of protecting persons.
Private Staff means individual(s) employed by you to perform duties related to your residential
affairs, personal affairs or incidental business. Private staff's labor or service is
engaged by and directed by you for remuneration. Private staff includes temporary
workers, including full-time or part-time leased workers. Independent contractors
and incidental workers are not considered private staff. Full-time means regularly
employed by you 30 hours or more per week, while part-time means regularly
employed by you less than 30 hours but more than 15 hours per week.
PEL-MA (03/06)

Page 2 of 18
Exhibit C Page 000203

means physical injury to, destruction of, or loss of use of tangible property and the
resulting loss of its use.
means any not-for-profit organization qualifying for tax exempt status under Section
501(c)(3), (4) or (7) of the Internal Revenue Code of the United States, or any
subsidiary thereof, including such organizations which are:
a. A religious, educational, charitable, scientific or literary organization;
b. A civic League, social welfare organization or local association of employees; or
c. A social or recreation club.
Provided, however, that qualifying organizations shall not mean:
a. Organizations in operation for less than 1 year or for which IRS certification is
pending,
b. Healthcare Organizations of any type or variety,
c. Secondary Education Organizations (including Colleges, Universities or any
organization providing post-12th grade educational services), except Alumni
Organizations, or
d. Organizations (other than residential cooperatives) with total assets (inclusive of
subsidiaries ) greater than $50,000,000 as stated in their most recent financial
statement at inception of this policy.
Recreational
means:
Motor Vehicle a. A motorized land vehicle designed for use off public roads and not subject to
motor vehicle registration or operator licensing;
b. A motorized land vehicle in dead storage at your residence; or
c. A motorized land vehicle used solely on and to service a location shown on the
Declarations Page.
Sexual
means unwelcome sexual advances, requests for sexual favors, or other verbal,
visual or physical conduct of a sexual nature when such conduct:
Harassment
a. Is linked with a decision affecting an individual's employment;
b. Interferes with an individual's job performance; or
c. Creates an intimidating, hostile or offensive working environment for an
individual.
Subsidiary
means any not-for-profit organization qualifying for tax exempt status under Section
501(c)(3), (4) or (7) of the Internal Revenue Code of the United States at the time of
the alleged wrongful act that the qualifying organization owns more than fifty
percent (50%) of the voting interest, either directly, or indirectly through one or
more of its subsidiaries , or has, at the time of the alleged wrongful act, the right to
elect or appoint more than fifty percent (50%) of the voting directors, or trustees,
either directly or indirectly through one or more of its subsidiaries ; and meets the
other requirements of a qualifying organization as defined in this policy
Temporary
means a person who is furnished to you to substitute for a permanent private staff
member on leave or to meet seasonal or short-term workload conditions.
Worker
means a boat or craft designed for use on, over or under water.
Watercraft
Wrongful Act means any breach of duty, neglect, error, misstatement, or misleading statement,
omission or act by you, in your capacity as a director, officer (in cases of a
director-officer) trustee, trustee emeritus or governor of a qualifying organization, or
any matter claimed against you by reason of your status as such. Wrongful Act
includes:
a) A wrongful employment act ;
b) Non-employment discrimination ;
c) Libel, slander, defamation or publication or utterance in violation of an
individual's right of privacy;
d) Wrongful entry or eviction or other invasion of the right of occupancy;
e) False arrest or wrongful detention;
f) Violation of the Sherman Antitrust Act or similar federal, state, or local statutes
or rules; and
g) Plagiarism, infringement of copyright or trademark or unauthorized use of title.
Wrongful
means actual or alleged employment related wrongful termination, sexual
harassment, or discrimination .
Employment
Act
For the purposes of the Limited Charitable Board Directors and Trustees Liability
Coverage, wrongful employment act also includes actual or alleged retaliation;
Property
Damage
Qualifying
Organizations

PEL-MA (03/06)

Page 3 of 18
Exhibit C Page 000204

Wrongful
Termination

wrongful failure to employ or promote; wrongful discipline; wrongful deprivation of
career opportunity; wrongful demotion or negligent employee evaluation, including
the giving of negative or defamatory statements in connection with an employee
reference.
means:
a. Violation of your private staff's rights, other than rights based on an express,
written, or oral agreement of employment, when terminating an employment
relationship; or
b. Failure to exercise duty and care on the part of you or a family member when
terminating an employment relationship, or
c. Violation of the rights of others in the employ of a qualifying organization , other
than rights based on an express, written, or oral agreement of employment,
when terminating an employment relationship.
PART II - WHAT IS COVERED

A. EXCESS LIABILITY
1. Insuring Agreement
We will pay damages an insured person is legally obligated to pay because of personal injury
or property damage caused by an occurrence, covered by this policy anywhere in the world:
a. In excess of damages covered by the required underlying insurance or the Minimum
Required Underlying Limit, whichever is greater; or
b. From the first dollar of damages where required underlying insurance either:
1) Exists but, coverage does not apply for a particular occurrence; or
2) Is not required under this policy and no underlying insurance exists.
2. Excess Uninsured and Underinsured Motorists Protection Coverage
This coverage is in effect only if an Excess Uninsured/Underinsured Motorists Limit is shown
on the Declarations Page:
a. Excess Uninsured/Underinsured Motorists Protection Coverage
We cover damages for bodily injury an insured person is legally entitled to receive from
the owner or operator of an uninsured or underinsured auto if the bodily injury is caused
by an occurrence during the Policy Period. We cover these damages in excess of the
underlying insurance or the Minimum Required Underlying Limit, whichever is greater.
This coverage will follow form.
b. Excess Uninsured/Underinsured Motorists Protection Arbitration
1) If we and an insured person do not agree:
a) Whether that insured person is legally entitled to recover damages from the
owner or operator of an uninsured or underinsured auto; or
b) As to the amount of damages which are recoverable by that insured person ;
either party may make a written demand for arbitration.
Both parties must agree to arbitration. If the amount in demand is $40,000 or less, it
shall be settled by a single neutral arbitrator. If the amount in demand is greater than
$40,000, each party will select an arbitrator, and the two arbitrators will select a
third. If they cannot agree within 30 days, either may request that selection be made
by a judge of a court of jurisdiction.
2) Each party will:
a) Pay the expenses it incurs; and
b) Bear the expenses of the third arbitrator equally.
3) Unless both parties agree otherwise, arbitration will take place in the county in
which the insured person lives. Local rules of law as to procedure and evidence will
apply. A decision agreed to by two of the arbitrators will be binding as to:
a) Whether the insured person is legally entitled to recover damages; and
PEL-MA (03/06)

Page 4 of 18
Exhibit C Page 000205

b) The amount of damages. This applies only if the amount does not exceed the
minimum limit for bodily injury liability specified by the financial responsibility
law of the state in which the covered auto is principally garaged. If the amount
exceeds that limit, either party may demand the right to a trial. This demand
must be made within 60 days of the arbitrators' decision. If this demand is not
made, the amount of damages agreed to by the arbitrators will be binding .
This provision supercedes any arbitration provision in any underlying insurance policy.
In no event may an arbitration award exceed the Excess Uninsured/Underinsured Limit
shown on the Declarations Page.
This provision does not apply to any disputes regarding the application of the Excess
Uninsured/Underinsured Motorist Protection. Any disputes regarding coverage shall be
resolved by a court of competent jurisdiction.
3. Additional Coverage
a. Coverage for Rented or Borrowed Autos
We cover damages an insured person is legally obligated to pay for bodily injury or
property damage caused by an occurrence during the Policy Period resulting from an
insured person's use of a rented or borrowed auto, provided the rental or loan does not
exceed 45 days.
We will provide this coverage in excess of any underlying insurance that applies to these
damages. If no underlying coverage exists, we will pay total damages.
This coverage does not cover damages an insured person is legally entitled to receive
from the owner or operator of an uninsured or underinsured auto.
b. Limited Residence Premises Business Liability
We cover damages an insured person is legally obligated to pay for personal injury or
property damage arising out of the physical condition of a residence shown on the
Declarations Page when business or professional activities are legally conducted by an
insured person at that residence . This coverage applies only if :
1) You do not have any employees conducting business activities at your residence
who are subject to workers' compensation or other similar disability laws;
2) You are not a home day care provider; and
3) There is no other valid and collectible insurance.
We will provide this coverage in excess of any underlying insurance that applies to these
damages. If no underlying coverage exists, we will pay total damages.
c. Newly Acquired Auto and Watercraft
1) We cover damages an insured person is legally obligated to pay for bodily injury or
property damage caused by an occurrence for newly acquired autos providing you
give us notice within 365 days after you become the owner. We reserve our right
not to continue to insure the auto once notified.
2) We also cover damages an insured person is legally obligated to pay for bodily injury
or property damage caused by an occurrence for newly acquired watercraft provided
you give us notice within 45 days after you become the owner for watercraft that is
26 feet or more in length or 50 or more horsepower, which you will be required to
pay the additional premium from the date of acquisition. We reserve our right not to
continue to insure the watercraft once notified.
We will provide this coverage in excess of any underlying insurance that applies to
these damages. If no underlying coverage exists, we will pay total damages.
d. Limited Employers' Liability
We will provide coverage in excess over any underlying insurance for damages
which are not compensable under workers' compensation or similar laws and which
an insured person is legally obligated to pay for bodily injury to private staff.
B. LIMITED EMPLOYMENT PRACTICES LIABILITY COVERAGE
1. This coverage is in effect only if a Limited Employment Practices Liability Coverage Limit is
shown on the Declarations Page:
PEL-MA (03/06)

Page 5 of 18
Exhibit C Page 000206

a. Insuring Agreement
We will pay damages you or a family member is legally required to pay to compensate
private staff arising out of your wrongful employment act to which this insurance
applies. This coverage applies only if:
1) The number of private staff does not exceed five (5) at the inception date of the
Policy Period; and
2) The wrongful employment act occurs during the Policy Period.
All wrongful employment acts arising out of continuous, repeated or related wrongful
employment acts shall be treated as one wrongful employment act and shall be deemed
to occur at the time of the first wrongful employment act.
b. Additional Coverage
Employment Crisis Fund TM
We cover reasonable fees and necessary expenses incurred by a crisis management firm
for services performed to minimize potential loss as a result of an employment crisis. A
crisis management firm means any public relations firm, media management consultant,
investigative firm or law firm. This coverage applies only if:
a. The employment crisis arises from a wrongful employment act committed during the
Policy Period; and
b. The employment crisis is reported to us as soon as practicable but in no event later
than thirty (30) days after you first contact a crisis management firm regarding the
employment crisis.
There is no requirement for you to obtain approval before incurring fees and expenses
with a crisis management firm following an employment crisis provided you select a firm
from our panel of pre-approved crisis management firms. Prior written approval from us
is required for this coverage to apply to fees and expenses incurred with any crisis
management firm that is not listed on our pre-approved panel.
The most we will pay is the fees and expenses of the crisis management firm until they
advise us that the employment crisis no longer exists or $25,000, whichever is less.
The most we will pay is $25,000 regardless of the number of employment crises
occurring during the Policy Period. This limit is in addition to the Limited Employment
Practices Liability limit stated on the Declarations Page. This coverage is not subject to a
deductible.
C. LIMITED CHARITABLE BOARD DIRECTORS AND TRUSTEES LIABILITY COVERAGE
This coverage is in effect only if a Limited Charitable Board Directors and Trustees Liability
Coverage Limit is shown on the Declarations Page:
Insuring Agreement
We will pay a director and trustee loss you are legally required to pay arising out of a
director and trustee claim against you in your capacity as a director, officer (in cases of
a director-officer), trustee, trustee emeritus or governor of a qualifying organization
alleging a wrongful act to which this insurance applies. This coverage applies only if:
1) The number qualifying organizations you are a director, trustee, trustee emeritus or
governor of does not exceed five (5) at the inception of the Policy Period;
2) The director and trustee claim is made against you during the Policy Period and
reported to us in accordance with the provisions of this policy for this coverage;
3) The director and trustee loss is not indemnified by the qualifying organization or the
qualifying organization does not indemnify you due to financial insolvency ; and
4) The director and trustee loss is excess of the greater of the director and trustee loss
covered by any applicable underlying insurance or the Deductible indicated on your
Declarations Page for this coverage.
All wrongful acts arising out of continuous, repeated or related wrongful acts shall be
treated as one wrongful act and shall be deemed to occur at the time of the first
wrongful act.

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Page 6 of 18
Exhibit C Page 000207

PART III - LIMITS
A. Excess Liability Coverage
The most we will pay for all claims for personal injury and property damage for any one
occurrence is the Personal Excess Liability Policy Limit shown on the Declarations Page. This
insurance applies separately to each insured person against whom a claim is made or suit is
brought but, we will not pay more than this amount in any one occurrence regardless of how
many coverages, claims, people, or autos are involved in the occurrence. There is no limit to the
number of occurrences during the Policy Period for which claims may be made.
B. Excess Uninsured/Underinsured Motorist Protection Coverage
Subject to the Personal Excess Liability Policy Limit above, the most we will pay in covered
damages under this coverage for any one occurrence is the Excess Uninsured/Underinsured
Motorist Limit shown on the Declarations Page, regardless of the number or type of autos listed
on the Declarations Page. We will not pay more than this amount in any one occurrence
regardless of how many claims, people, or autos are involved in the occurrence. There is no
limit to the number of occurrences during the Policy Period for which claims may be made.
C. Limited Employment Practices Liability
1. Limits
a. Annual Aggregate
The most we will pay for the sum of all losses for all claims under this coverage during
the Policy Period is the limit shown as 'Annual Aggregate' for Limited Employment
Practices Liability. Each loss payment we make for such claims reduces the Annual
Aggregate limit by the amount of the payment. This reduced limit will then be the
amount available for any further claims for the remaining portion of the Policy Period.
b. Each Wrongful Employment Act
Subject to the Annual Aggregate Limit, the most we will pay for all losses for all claims
because of any wrongful employment act or series of related acts is the 'Each Wrongful
Employment Act' limit shown for Limited Employment Practices Liability.
This insurance applies separately to each insured person against whom a claim is made or
suit is brought but we will not pay more than the Annual Aggregate regardless of how many
claims or people are involved.
2. Deductible
The Deductible amount shown for Employment Practices Liability shall be subtracted from
the amount of damages as a result of any wrongful employment act or series of related acts,
regardless of how many claims or people are involved.
The limits will not be reduced by the application of the Deductible amount. Notice of claim
or suit and our right to investigate and negotiate any such claim or suit, apply irrespective of
the application of the Deductible amount.
D. Limited Charitable Board Directors and Trustees Liability
1. Annual Aggregate
The most we will pay for the sum of all director and trustee losses for all director and
trustee claims under this coverage during the Policy Period is the limit shown as 'Annual
Aggregate' for Limited Charitable Board Directors and Trustees Liability. Each director and
trustee loss payment we make for such director and trustee claims reduces the Annual
Aggregate limit by the amount of the payment. This reduced limit will then be the amount
available for any further director and trustee claims for the remaining portion of the Policy
Period. Payment for Defense Coverage and Claims Expenses reduces the Annual Aggregate
limit.
2. Each Wrongful Act
Subject to the Annual Aggregate Limit, the most we will pay for all director and trustee
losses for all director and trustee claims because of any wrongful act or series of related
acts is the 'Each Wrongful Act' limit shown for Limited Charitable Board Directors and
Trustees Liability.

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Page 7 of 18
Exhibit C Page 000208

This insurance applies separately to each insured person against whom a director and
trustee claim is made or suit is brought but we will not pay more than the Annual Aggregate
regardless of how many director and trustee claims or people are involved.
PART IV - DEFENSE COVERAGE AND CLAIM EXPENSE
A. As respects Excess Liability, Limited Employment Practices Liability, or Limited Charitable Board
Directors and Trustees Liability:
We will defend an insured person against any suit seeking damages covered by Excess Liability,
Limited Employment Practices Liability, or Limited Charitable Board Directors and Trustees
Liability under this policy and where:
1) The underlying insurance has been exhausted by payment of claims;
2) No underlying insurance applies; or
3) With respect to Limited Charitable Board Directors and Trustee Liability, any applicable
Deductible has been exhausted.
even if the allegations of the suit are groundless, false, or fraudulent.
With respect to Limited Charitable Board Directors and Trustee Liability, Defense Coverage and
Claim Expenses are subject to the applicable Deductible.
You may choose counsel from a panel of firms selected by us. If a panel counsel is not
established in your jurisdiction, we reserve the right to select counsel. We may investigate and
settle any claim or suit at our discretion.
Additionally, we will pay:
a. All court costs and expenses on judgements assessed against any

insured person ;

b. Reasonable expenses incurred by an insured person at our request, up to a total of $10,000
for assisting us in the investigation or defense of a claim or suit;
c. The cost of bail bonds required of an insured person because of a covered loss;
d. All premiums on bonds required in a suit we defend, but not for bond amounts more than
the coverage amount (we need not apply for or furnish any bond);
e. All expenses incurred by us;
f.

Interest on the entire judgment against an insured person which accrues after entry of the
judgment and before we pay or tender, or deposit in court, that part of the judgment which
does not exceed the amount of coverage; and

g. All prejudgment interest awarded against an insured person on that part of the judgment we
pay or offer to pay. We will not pay any prejudgment interest based on that period of time
after we make an offer to pay the amount of coverage.
In jurisdictions where we are prevented from defending an insured person for a covered loss
because of laws or other reasons, we will pay any expenses incurred with our prior consent for
the insured person's defense.
B. As respects Excess Liability and Limited Charitable Board Directors and Trustees Liability, the
following also applies:
We will have the right, but not the duty, to defend any insured person against any suit seeking
damages covered by this policy and also covered by required underlying insurance.
We will have the right to participate, at our own expense, with the insured person or insurer of
any underlying insurance policy in the investigation, defense or settlement of any claim or suit
which we believe may require a loss payment under this policy. We will not contribute to the
costs and expenses incurred by any insurer of an underlying insurance policy, which an insurer
of such policy is obligated to provide.
C. When Our Duty To Defend Ends
1. As respects Excess Liability:
a. Our duty to defend any insured person against any claim or suit arising out of any one
occurrence ends when the amount we have paid in damages for that occurrence equals
the Personal Excess Liability Policy Limit shown on the Declarations Page.

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Page 8 of 18
Exhibit C Page 000209

b. Payments under this provision, Defense Coverage and Claim Expense, except a
settlement payment, are in addition to the Personal Excess Liability Policy Limit shown
on the Declarations Page.
2. As respects Limited Employment Practices Liability:
a. Our duty to defend any insured person against any claim or suit arising out of any one
wrongful employment act or a series of related wrongful employment acts ends when
the amount we have paid in damages for that wrongful employment act equals the
Limited Employment Practices Liability limits shown on the Declarations Page.
b. Payments under this provision Defense Coverage and Claim Expense, except a
settlement payment, are in addition to the Limited Employment Practices Liability limits
shown on the Declarations Page.
3. As respects Limited Charitable Board Directors and Trustees Liability:
a. Our duty to defend any insured person against any director and trustee claim or suit
arising out of any one wrongful act or a series of related wrongful acts ends when the
amount we have paid in director and trustee loss for that wrongful act equals the
Limited Charitable Board Directors and Trustees Liability limits shown on the
Declarations Page.
b. Payments under this provision Defense Coverage and Claim Expense are part of and not
in addition to the Limited Charitable Board Directors and Trustees Liability limits shown
on the Declarations Page.
D. Expanded Defense Coverage
If we are defending an insured person for any suit seeking covered damages, we will reimburse
you, up to $10,000, for the reasonable expenses for a law firm of your choice to review and
consult on the defense covered under this policy. This coverage only applies to expenses
incurred after the date our defense has begun and any applicable Deductible has been applied.
This provision does not apply to coverage under the Limited Charitable Board Directors and
Trustees Liability.
PART V - WHAT IS NOT COVERED - EXCLUSIONS
A. As respects Excess Liability, Limited Employment Practices Liability and Limited Charitable Board
Directors and Trustees Liability:
This insurance does not provide coverage for liability, defense costs or any other cost or
expense:
1. Auto or Recreational Motor Vehicles
Arising out of the ownership, maintenance, use, loading or unloading of:
a. Any motorized land vehicle (other than an auto or recreational motor vehicle) owned,
leased or regularly used by any insured person ; or
b. Any auto or recreational motor vehicle not covered by any underlying insurance or not
listed on the Declarations Page of this policy.
This exclusion does not apply to covered damages as provided under Rented or Borrowed
Auto and Newly Acquired Auto and Watercraft Additional Coverages.
2. Aircraft
Arising out of the ownership, maintenance, use, loading, unloading, or towing of any aircraft
that is rented to, owned by, or in the care, custody or control of an insured person except,
non-owned aircraft chartered with a crew by you or on your behalf.
3. Watercraft
Arising out of the ownership, maintenance, use, operation, loading or unloading of any
watercraft:
a. That is 26 feet or more in length or 50 or more horsepower and owned by, furnished or
rented to an insured person for longer than 45 days and is not listed on the Declarations
Page;
b. Not covered by any underlying insurance; or

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Page 9 of 18
Exhibit C Page 000210

c. Used for any business or commercial purpose.
However, item b. of this exclusion does not apply to covered damages as provided under
Newly Acquired Auto and Watercraft Additional Coverage.
4. Racing
Arising out of the use of any auto, recreational motor vehicle, watercraft or aircraft for the
participation in or practice for competitive racing. However, this exclusion does not apply to
sailboats that are covered under this policy.
5. Auto Services
Arising out of the use of an auto, or a temporary substitute for such auto, by any insured
person while employed or otherwise engaged in the business of:
a. Selling;
b. Repairing;
c. Servicing;
d. Storing;
e. Parking;
f. Testing; or
g. Delivering;
autos designed for use mainly on public highways.
6. Business Pursuits
Arising out of an insured person's business property or business pursuits, investment
activity or any activity intended to realize a profit for either an insured person or others.
However, this exclusion does not apply to:
a. Volunteer work for an organized charitable, religious or community group;
b. Incidental business activity;
c. Limited Residence Premises Business Liability coverage; or
d. Residences held for rentals which are listed on the Declarations Page.
7. Professional Services
Arising out of an insured person performing or failure to perform professional services, or for
professional services for which any insured person is legally responsible or licensed.
8. Intentional Act
Arising out of any criminal, willful, fraudulent, dishonest, intentional or malicious act or
omission by any person, or the gaining of any profit or advantage to which an insured
person is not entitled. We will not cover any amount for which the insured person is not
financially liable or which are without legal recourse to the insured person; We also will not
cover claims for acts or omissions of any person which are intended to result in, or would
be expected by a reasonable person to cause, property damage or personal injury. This
exclusion applies even if the injury or damage is of a different kind or degree, or is sustained
by a different person, than expected or intended. This exclusion does not apply to bodily
injury if the insured person acted with reasonable force to protect any person or property.
9. Controlled Substance(s)
Arising out of the use, sale, manufacture, delivery or transfer or possession of a controlled
substance(s) as defined by the Federal Food and Drug Law at 21 U.S.C. Sections 811 and
812. However, this exclusion does not apply to the legitimate use of prescription drugs of a
person following the orders of a licensed physician.
10. War
Caused directly or indirectly by war, including the following and any consequences of the
following:
a. Undeclared war, civil war, insurrection, rebellion or revolution;
b. Warlike acts by military forces or personnel; or
c. The destruction or seizure of property for a military purpose.
Discharge of a nuclear weapon will be deemed a warlike act even if accidental.
11. Nuclear
Caused directly or indirectly by nuclear reaction, radiation, or radioactive contamination.
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Exhibit C 10 of 18
Page 000211

12. Assessments
For any assessment charged against an insured person as a member of an association,
corporation, community of property owners, condominium or cooperative association.
13. Contracts
For any damages arising from:
a. Contracts or agreements made in connection with any qualifying organization or insured
person's business ;
b. Unwritten contracts or agreements; or
c. Contracts or agreements in which the liability of others is assumed after a loss.
14. Workers Compensation, Unpaid Wages or Disability
For any damages or benefits an insured person is legally obligated to provide under any
worker's compensation, disability benefits, Jones Act or General Maritime Law,
unemployment compensation, occupational disease or similar law; For any damages or
benefits an insured person is legally obligated to provide for employment-related benefits,
retirement benefits, stock options, perquisites, deferred compensation or any other type of
similar compensation, improper payroll deductions, for unpaid wages, overtime pay for
hours actually worked or labor actually performed.
15. Uninsured/Underinsured Motorists
For any claim for uninsured motorists, underinsured motorists, or no-fault insurance benefits
unless a limit amount is shown for the Excess Uninsured/Underinsured Motorist Limit on the
Declarations Page of this policy.
16. Insured Person
For personal injury to an insured person under this policy.
17. Transmitted Diseases
For personal injury resulting directly or indirectly from any illness, sickness or disease
transmitted intentionally or unintentionally by an insured person to anyone. We do not cover
any damages for any threat of exposure or any consequences resulting from the illness,
sickness or disease.
18. Care, Custody or Control
For property damage to property in the care, custody and control of an insured person to
the extent that the insured person is required by contract to provide insurance.
This exclusion does not apply to:
a. Coverage provided under the Additional Coverages, Rented or Borrowed Auto and Newly
Acquired Auto and Watercraft; or
b. Property damage caused by fire, smoke or explosion.
19. Owned Property
For property damage to property owned by an insured person .
B. As respects Excess Liability, the following also applies:
This insurance does not provide coverage for liability, defense costs or any other cost or
expense:
1. Wrongful Employment Acts
Arising out of any wrongful employment act, including but not limited to wrongful
termination of employment.
2. Discrimination
Arising out of any actual, alleged or threatened discrimination.
3. Sexual Misconduct
Arising out of any actual, alleged or threatened:
a. Sexual misconduct, molestation or harassment;

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Page
Exhibit C 11 of 18
Page 000212

b. Corporal punishment; or
c. Sexual, physical or mental abuse.
4. Director's Errors or Omissions
Arising out of any insured person's acts, errors or omissions as an officer or member of the
board of directors of any corporation or organization. This exclusion does not apply to an
insured person's actions for a non-profit corporation or organization, a condominium or
cooperative association or coverage provided under the Limited Charitable Board Directors
and Trustees Liability coverage of this policy.
C. As respects Limited Employment Practices Liability and Limited Charitable Board Directors and
Trustees Liability, the following also applies:
This insurance does not provide coverage for liability, defense costs or any other cost or
expense:
1. Property Damage or Bodily Injury
Arising out of property damage or bodily injury.
2. Punitive Damages, Taxes
For, or arising out of, fines, penalties, taxes, punitive, exemplary or multiplied damages,
except where required by law. This exclusion does not apply to the IRS imposed "Excess
Benefits" 10% penalty specified in the definition of director and trustee loss.
3. Uninsurable Losses
For, or arising out of, matters which may be deemed uninsurable according to the law under
which the Policy is construed.
4. Breach of an Employment Contract
Arising out of a wrongful employment act for which the insured person is obligated to pay
damages by reason of an express, written, or oral agreement of employment.
5. Non-Monetary Relief
For, or arising out of, that part of any claim or suit seeking non-monetary relief including,
but not limited to, injunctive relief, declaratory relief, disgorgement, job reinstatement, or
other equitable remedies.
This exclusion does not apply to coverage provided under the Limited Charitable Board
Directors and Trustees Liability coverage of this policy; however, a directors and trustee loss
does not include the cost of complying with any judgment or settlement of a director and
trustee claim for non-monetary relief.
6. Violations of Laws Applicable to Employers
Arising out of a violation of any of the responsibilities, obligations or duties imposed by the
Employment Retirement Income Security Act of 1974, Fair Labor Standards Act (except the
Equal Pay Act), the Workers' Adjustment and Retraining Notification Act, National Labor
Relations Act, the Consolidated Omnibus Budget Reconciliation Act, the Occupational Safety
and Health Act, the Immigration Reform & Control Act of 1986, any rules or regulations of
the foregoing promulgated thereunder, and amendments thereto or any similar provisions of
any federal, state, local or foreign statutory law or common law.
7. Social Security Benefits
Arising out of any obligation under the Social Security Act including, but not limited to, any
claim for lost or diminished Social Security benefits, including any amendments to that law,
or similar federal, state, or local statutory or common law.
D. As respects Limited Charitable Board Directors and Trustees Liability:
1. Pending or Prior claims
Arising out of:
a. Litigation; or
b. Administrative or regulatory proceeding or investigation of which a qualifying
organization or the insured person had notice, which was prior to or pending as of the
continuity date; or arising out of essentially the same facts as alleged in such pending or
prior litigation or administrative or regulatory proceeding or investigation.
PEL-MA (03/06)

Page
Exhibit C 12 of 18
Page 000213

2. Prior Notice
Arising out of any facts alleged, or to the same or related wrongful act alleged, in any
director and trustee claim which has been reported, or in any circumstances of which notice
has been given, under any insurance policy of the insured person or the qualifying
organization prior to the inception date of this coverage.
3. Qualifying Organization or Director Claim
Arising out of any director and trustee claim brought by, against or on the behalf of the
qualifying organization , or any affiliate thereof, or brought by a director, trustee, trustee
emeritus or governor of the qualifying organization. No coverage is afforded to the qualifying
organization and this policy does not provide any defense or pay any director and trustee
loss of the qualifying organization. This exclusion shall not apply to any derivative claim
brought and maintained independently of the qualifying organization or the insured person.
4. Specific Laws
Arising out any alleged violations of the Alien Tort Claim Act or any other similar law
whether statutory, regulatory or common law.
5. Securities
Arising out of any purchase or sale of securities, including annuities, or director and trustee
claim brought by securities holders.
6. Intellectual Property
Arising out of any allegation of misappropriation of patent, trade secret or any other
intellectual property rights.
7. Pollution
Arising out of any alleged or threatened discharge, dispersal, release or escape of pollutants,
or any direction or request to test for, monitor, clean up, remove, contain, treat, detoxify or
neutralize pollutants. Pollutants include any solid, liquid, gaseous, biological, radiological or
thermal irritant or contaminant, including smoke, vapor, dust, fibers, mold spores, fungi,
germs, soot, fumes, acids, alkalis, chemicals and waste.
8. Sponsor Developer
Arising out of any director or trustee claim(s) brought by, against, or on behalf of the
developer of the condominium units, cooperative corporation property or other real or
personal property managed by the qualifying organization(s) (hereafter the property); which
are brought by or on behalf of the sponsor for conversion of the property to cooperative or
condominium ownership; or any director or trustee claim which alleges or arises out of any
alleged conflict of interest between the fiduciary responsibility of any member of the Board
of the qualifying organization to the qualifying organization and their relationship with the
sponsor or developer of the qualifying organization property.
9. Medical Malpractice
Arising out of any alleged medical or professional malpractice including, but not limited to,
the rendering or failure to render of medical or professional service or treatment.
10. Sexual Misconduct
Arising out of, or in any way involving, directly or indirectly, any alleged sexual misconduct,
child abuse or neglect, including but not limited to the employment, supervision, reporting to
the proper authorities, failure to so report or retention of any person. "Sexual Misconduct"
means any licentious, immoral or sexual behavior, sexual abuse, sexual assault, or
molestation intended to lead to or culminating in any sexual act against any individual(s).
11. Failure to Maintain Insurance
Arising out of any alleged failure or omission on the part of the qualifying organization or an
insured person to effect or maintain adequate insurance.
12. IRS Assessment
For, or arising out of, the assessment, by the IRS, of a penalty greater than or equal to 25%
against a qualifying organization, any other director, trustee, trustee emeritus or governor,
or an insured person deemed to have received an Excess Benefit will void ab initio all Limited
Charitable Board Directors and Trustees Liability coverage. Director and trustee loss does

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Page 13 of 18

Exhibit C Page 000214

not include: (1) any penalty in excess of 10% assessed by the IRS; and (2) Defense
Coverage and Claim Expense incurred to defend you if it has been in fact determined that
you received an Excess Benefit which resulted in penalties in excess of 10%.
PART VI - YOUR DUTIES
A. Maintain Underlying Insurance (other than Limited Charitable Board Directors and Trustees
Liability Coverage)
1. Underlying Insurance
We will pay for that part of covered damages in excess of all underlying insurance, even if
the underlying coverage is for more than the Minimum Required Underlying Limits shown on
the Declarations.
"Underlying Insurance" includes all liability insurance, other than this policy or insurance
purchased specifically to be excess of this policy that applies to the covered damages.
2. Required Underlying Insurance
a. You and your family members must maintain insurance in full effect for the Minimum
Required Underlying Limit amounts shown on the Declarations Page, covering your
exposures for:
1) Personal liability resulting from personal injury and property damage caused by an
occurrence; and
2) Bodily injury and property damage resulting from an occurrence for all autos,
watercraft, or recreational motor vehicles you or your family members own, lease,
regularly use, or rent for longer than 45 days.
b. If, at the time of an occurrence, the underlying insurance that is applicable to the
occurrence is not fully collectible because:
1) You or a family member have failed to maintain required underlying insurance;
2) The limits, terms or conditions of the required underlying insurance have been
reduced or restricted for specific exposures;
3) The insurer of the required underlying insurance is bankrupt, insolvent or in
receivership; or
4) You or a family member have failed to meet your contractual responsibilities under
the required underlying insurance;
then we will pay only as though the required underlying insurance was in effect for the
Minimum Required Underlying Limits stated on the Declarations Page.
B. Maintain Underlying Insurance (Limited Charitable Board Directors and Trustees Liability
Coverage only)
1. Underlying Insurance
We will pay for that part of covered director and trustee loss in excess of all underlying
insurance, even if the underlying coverage is for more than the Minimum Required
Underlying Limits shown on the Declarations.
"Underlying Insurance" includes all liability insurance, other than this policy or insurance
purchased specifically to be excess of this policy that applies to the covered director and
trustee loss.
2. Required Underlying Insurance
a. "Required underlying insurance" means any insurance issued to the qualifying
organization and applicable to director and trustee claims against you for director and
trustee loss .
b. The "required underlying insurance" must be maintained by the qualifying organization in
full effect for the Minimum Required Underlying Limit amounts shown on the
Declarations Page, which in all events shall not be less than one million dollars
($1,000,000) in the aggregate.
c. If, at the time of a director and trustee loss, the underlying insurance that is applicable
to the director and trustee loss is not fully collectible because:

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Exhibit C 14 of 18
Page 000215

1) The qualifying organization has failed to maintain required underlying insurance;
2) The limits, terms or conditions of the required underlying insurance are not
applicable to the particular director and trustee claim against you;
3) The insurer of the required underlying insurance is bankrupt, insolvent or in
receivership; or
4) You have failed to meet your contractual responsibilities under the required
underlying insurance;
then we will pay only as though the required underlying insurance was in effect for the
Minimum Required Underlying Limits stated on the Declarations Page.
3. Subject to the preceding, if the limit of liability of "required underlying insurance" is reduced
or exhausted by payments made thereunder, we will:
a. In the event of reduction, pay excess of the remaining limits of "required underlying
insurance"; and
b. In the event of exhaustion, continue in force as underlying insurance.
C. Your Duties After a Loss
In the event of an occurrence, wrongful employment act, or wrongful act which is likely to
involve this policy, or if you or any other insured person under this policy are sued or a claim or
director and trustee claim is made against you in connection with an occurrence, wrongful
employment act or wrongful act which may be covered under this policy:
1. You must notify us or our agent as soon as practicable of the time, place and other
circumstances of the occurrence, wrongful employment act or wrongful act and provide us
with the names and addresses of any persons injured and any available witnesses. Further,
in the event coverage will be sought under the Limited Charitable Board Directors and
Trustees Liability coverage of this policy, the following also applies:
a. Notice hereunder shall be given in writing to
Attn. Segmentation Department
AIG Domestic Claims, Inc.
175 Water Street, 9th Floor
New York, NY 10038
Notice shall include and reference this Policy Number as indicated on the
Declarations Page. If mailed, the date of mailing shall constitute the date that such
notice was given and proof of mailing shall be sufficient proof of notice.
b. Your notification must occur as soon as practical and no later than the end of the
Policy Period of this policy. You may also report the director and trustee claim within
thirty days after the end of the Policy Period as long as you are reporting the director
and trustee claim no later than thirty days after the director and trustee claim was
made against you. Notice of director and trustee claim and our right to investigate
and negotiate any such director and trustee claim, apply irrespective of the
application of the "required underlying insurance".
c. If you notify us as above then any director and trustee claim which is subsequently
made against the insured person and reported to us alleging the facts alleged, or the
same or related wrongful acts alleged in the earlier director and trustee claim for
which notice has been given, shall be considered made at the time such earlier
notice was given.
2. An insured person must:
a. Provide us with any suit papers and any other documents which will help us defend the
insured person ; and
b. Assist and cooperate with us in the conduct of the defense by helping us:
1) To make settlement;
2) To enforce any right of contribution or indemnity against any person or organization
who may be liable to an insured person ;

PEL-MA (03/06)

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Exhibit C 15 of 18
Page 000216

3) To attend hearings and trials; and
4) To secure and give evidence and obtain the attendance of witnesses.
c. With respect to the Limited Charitable Board Directors and Trustees Liability coverage:
In the event you do not consent to a settlement proposed by us and agreeable to the
plaintiff, then our liability for all directors and trustee loss shall not exceed the amount
for which we could have settled the director and trustee claim against you plus Defense
Coverage and Claim Expenses incurred as of the date such settlement was proposed.
We may also in our discretion tender the defense of the director and trustee claim to you
in which case you shall thereafter on your own behalf negotiate and defend the director
and trustee claim independently of us.
PART VII - CONDITIONS
A. Policy Period and Territory. The policy period is stated on the Declarations Page. This policy
applies to:
1. An occurrence which takes place anywhere in the world; or
2. A wrongful employment act or wrongful act which takes place anywhere in the world but,
only if the claim or the directors and trustees claim is made and a suit is brought for such
wrongful employment act or wrongful act in the United States of America, its territories or
possessions.
Provided, however if coverage for a claim under this policy is in violation of any United
States of America economic or trade sanction, including but not limited to, sanctions
administered and enforced by the U.S. Treasury Department's Office of Foreign Assets
Control ("OFAC"), then coverage for that claim shall be null and void.
B. Suit Against Us.
1. No action can be brought against us unless there has been full compliance all of the terms
under this policy .
2. No one will have the right to join us as a party to any action against an

insured person .

3. Also, no action can be brought against us until the obligation of such insured person has
been determined by final judgment or agreement signed by us.
4. We will also not be liable for the insured person's share of any payment due because of a
settlement or judgment for which the insured person is responsible under any deductible
provision.
C. Appeals. If the insured person or the insurer of an underlying policy elects not to appeal a
judgment, which would require payment of loss under this policy, we may appeal the judgment.
We will pay the cost and interest incidental to the appeal. We will not be liable for more than
the policy limit shown on the Declarations Page plus the incidental cost and interest.
D. Recovery. If the insured person has rights to recover all or part of any payment we have made
under this policy, those rights are transferred to us. This shall specifically include any right to
indemnification against the qualifying organization pursuant to law, contract or by its charter or
by-laws. The insured person must do nothing after loss to impair such rights of recovery. At our
request, the insured person will bring suit or transfer those rights to us and help us enforce
them.
E. Assignment. No one covered under this policy may assign or turn over any right or interest in
regard to the policy without our written consent.
F. Changes. This policy may only be changed by written endorsement issued by us.
G. Conformity to Statutes. Any provision of this policy, which is in conflict with state or local law,
is amended to conform to the law.
H. Liberalization. If we broaden the coverages provided by our Personal Excess Liability Policy
without additional premium charge, the changes will automatically apply to your policy as of the
effective date on which the changes are adopted in your state.
I.

Bankruptcy or Death. The insured person's bankruptcy or insolvency shall not relieve us of any
of our obligations. However, if the insured person dies or becomes bankrupt or insolvent during
the Policy Period, this policy, unless cancelled, will cover the insured person's legal
representative for the remainder of the Policy Period.

PEL-MA (03/06)

Page
Exhibit C 16 of 18
Page 000217

J. Other Insurance. This policy shall apply as excess over any other insurance, except when the
other insurance is specifically written to apply in excess of this policy.
K. Cancellation. You may cancel this policy by mailing or delivering to our agent, or to us, advance
notice of the date on which the cancellation is to take effect, and returning your copy of the
policy to us. Your premium refund, if any, will be pro rata.
We may cancel by mailing to you, at the last mailing address known to us, written notice
stating when cancellation will be effective. If the policy is cancelled by us due to your failure to
discharge when due any of your obligations in connection with the payment of premium for this
policy or any premium installment, whether payable directly to us or our agent or indirectly
under any premium finance plan or extension of credit, written notice of cancellation must be
mailed at least ten (10) days prior to the effective date of such cancellation. However, if we
cancel for any reason other than non-payment of premium, written notice of cancellation must
be mailed at least thirty (30) days before the effective date of cancellation. Your premium
refund, if any, will be pro rata. Proof of mailing of notice as mentioned above shall be sufficient
proof of notice. The effective date and hour of cancellation stated in the notice shall become the
end of the Policy Period.
L. Non-Renewal. If we elect not to renew this policy, we shall mail to you at the last address
known to us written notice of non-renewal not less than thirty (30) days before the end of the
Policy Period as stated on the Declarations Page. Regardless, this policy will terminate at the
end of the Policy Period stated on the Declarations Page if you have failed to discharge when
due any of your obligations in connection with the payment of premium for the renewal of this
policy, or if you have notified us or our agent that you do not wish this policy to be renewed.
Proof of mailing of notice mentioned above shall be sufficient proof of notice.
M. Transfer of Control. You may take over control of any outstanding claim or suit previously
reported to us only if we both agree that you should, or if a court orders you to do so. If your
limits are exhausted, we will notify you of all outstanding claims or suits so that you can take
over control of the defense. We will help transfer control to you. We shall take whatever steps
are necessary to continue the defense of any outstanding claim, and avoid a default judgment
during the transfer of control to you. If we do so, we shall not waive or give up any of our
rights. You shall pay all reasonable expense we incur for taking such steps after the limits have
been exhausted.
In addition, with Respect to Limited Charitable Board Directors and Trustees Liability Coverage:
N. Concealment or Fraud
The Limited Charitable Board Directors and Trustees Liability coverage will be void if, whether
before or after a loss, you have:
1. Intentionally concealed or misrepresented any material fact or circumstance;
2. Engaged in fraudulent conduct; or
3. Made false statements;
relating to this coverage.
O. Coordination of Limits. With respect to any director and trustee claim(s) against an insured
person under this policy for which coverage is also provided by one or more other policies
issued by the Insurer or any other member of the AIG Inc ("AIG "), (or would be provided but for
the exhaustion of the limit of liability or the applicability of the retention amount or deductible or
the failure of the Insured(s) to submit a notice of a Claim), the limit of liability provided by virtue
of this policy shall be reduced by the Limit of Liability provided by said other AIG policy.
Notwithstanding the above, in the event such other AIG policy contains a provision which is
similar in intent to the foregoing paragraph, then the foregoing paragraph will not apply, but
instead:
1. The Insurer shall not be liable under this policy for a greater proportion of the director and
trustee loss than the applicable limit of liability under this policy bears to the total limit of
liability of all such policies, and
2. The maximum amount payable under all such policies shall not exceed the limit of liability of
the policy which has the highest available limit of liability.
The foregoing will not apply to directors and officers insurance purchased by the qualifying
organization.

PEL-MA (03/06)

Page
Exhibit C 17 of 18
Page 000218

Includes copyrighted material from Insurance Services Office, Inc. with its permission.

In Witness Whereof, we have caused this policy to be executed and attested, and if required by
state law this policy shall not be valid unless countersigned by our authorized representative.

AIG Property Casualty Company

President

Secretary

PEL-MA (03/06)

Page
Exhibit C 18 of 18
Page 000219

AIG Property Casualty
U. S. Privacy and Data Security Notice
About This Notice
This Privacy and Data Security Notice applies only to your Personal Information (see definition
below) obtained by one of the property-casualty insurance company subsidiaries or affiliates of
American International Group, Inc. listed at the end of this notice (collectively, the “AIG Companies”
or “we”) in connection with the products or services one of those companies provided primarily for
your personal, family, or household purposes in connection with which you are receiving this notice.
The AIG Companies have established practices, procedures and system protections that are
designed to help protect the privacy and security of Personal Information that we collect in the
course of conducting our business. This notice outlines how we collect, handle, and disclose
Personal Information about you.
The term "Personal Information," as used in this Privacy and Data Security Notice, means
information that identifies you personally. Examples of Personal Information include, but are not
limited to, a first and last name, a home or other physical address, an email address, a financial
account or credit card number, a driver's license number, or information on your physical condition
or health status.
I.

Information Privacy

We may collect Personal Information from applications, enrollment forms, in claims processing, or in
your other interactions with us and with our Affiliates. We may also collect Personal Information
from credit reporting agencies and other third parties in connection with the sale of our products to
you.
We will collect Personal Information only in accordance with applicable laws or regulations, whether
we collect it in response to your request for a product or service from us or otherwise.
Information Sharing
We may share your Personal Information with Affiliates and Non-Affiliates as described below.
With our Affiliates:
Our Affiliates may include other insurance companies, insurance holding companies, insurance
agents and agencies, claims administrators, marketing companies, e-commerce service providers,
and companies providing administrative services.
We may share your Personal Information, including Personal Information of a health nature, with our
Affiliates that assist us in servicing your insurance policies. Examples are administration (billing and
collections), risk management, underwriting, and claims handling. We may also share your Personal
Information with our Affiliates for the purpose of detecting and preventing fraud, as directed or
authorized by you, or as otherwise permitted or required by law.
With Non-Affiliates:
We may share your Personal Information, including Personal Information of a health nature, with
Non-Affiliates that assist us in servicing your insurance policies. Examples are administration (billing
and collections), risk management, underwriting, and claims handling. We may also share your
Personal Information with Non-Affiliates for the purpose of detecting and preventing fraud, as
directed or authorized by you, or as otherwise permitted or required by law.
We may also enter into joint marketing agreements with Non-Affiliates to share your non-health
Personal Information as permitted by law. These Non-Affiliates may include providers of financial
products or services such as insurance companies, financial institutions, and securities firms.
Because we do not share Personal Information with either Affiliates or Non-Affiliates in any other
way, there is no need for an opt-out process in our privacy procedures.
78052 (01/13)

Exhibit C Page 000220

For California and Vermont Residents: If it becomes necessary to share your Personal Information
with Non-Affiliates other than as specifically allowed by law, we will not do so without first
obtaining your permission.
II. Data Security
To help prevent unwarranted disclosure of your Personal Information and secure it from theft, we
utilize secure computer networks. Access is restricted to those persons who have a business need
to use your Personal Information to provide products or services to you. We also maintain physical,
electronic, and procedural safeguards designed to protect your Personal Information in compliance
with federal and state privacy and information security laws. Non-Affiliates that assist us in
servicing insurance policies or who enter into joint marketing agreements with us are required to
take measures to maintain the security of your Personal Information in compliance with federal and
state privacy and information security laws.
III. Maintaining Personal Information
We also maintain procedures to ensure that the Personal Information we collect is accurate,
up-to-date, and as complete as possible. If you believe the information we have about you in our
records or files is incomplete or inaccurate, you may request that we make additions or corrections,
or if it is feasible, that we delete this information from our files. You may make this request in
writing to (include your name, address and policy number):
Chief Privacy Officer
AIG Property Casualty
180 Maiden Lane, 40th Floor | New York, NY 10038
Fax: [phone]
E-Mail: [e-mail]

Special Notice: You can obtain access to any non-public Personal Information we have about you if
you properly identify yourself and submit a written request to the address above describing the
information you want to review. We will also tell you the identity, if recorded, of persons to whom
we have disclosed your non-public Personal Information within the preceding two years.
You may request that we correct, amend or delete information about you. If we do so, we will
notify organizations that provided us with that information and, at your request, persons who
received that information from us within the preceding two years. If we cannot grant your request
to correct, amend or delete the information, you may give us a written statement of the reasons you
disagree, which we will place in your file and give to the same parties who would have been
notified of the requested change.
Our Customers Can Depend on Us
We are committed to maintaining our trusted relationship with our Customers. We consider it our
privilege to serve our Customers' insurance and financial needs and we value the trust they have
placed in us. Our Customers' privacy is a top priority. We will continue to monitor our practices in
order to protect that privacy and will comply with state privacy laws that require more restrictive
practices than those set out in this notice.
Important Information Concerning the Applicability and Future Changes to this Privacy and Data
Security Notice
We may change this Privacy and Data Security Notice from time to time, and if particular changes
are required by law to be communicated to you, we will do so.
The AIG Companies include: American Home Assurance Company; AIG Assurance Company; AIG
Property Casualty Company; AIG Specialty Insurance Company; Commerce and Industry Insurance
Company; Granite State Insurance Company; Illinois National Insurance Co.; Lexington Insurance
Company; National Union Fire Insurance Company of Pittsburgh, Pa.; National Union Fire Insurance
Company of Vermont; New Hampshire Insurance Company; The Insurance Company of the State of
Pennsylvania; American International Life Assurance Company of New York; and American General
Life Insurance Company of Delaware.

78052 (01/13)

Exhibit C Page 000221

Endorsement to Policy # PCG 0006235889
Policy Period : 01/01/2014

- 01/01/2015

PERSONAL EXCESS LIABILITY POLICY
EMPLOYMENT PRACTICES LIABILITY EXCLUSION
With respect to coverage provided by this endorsement, all provisions and conditions of the
policy apply unless they are changed by this endorsement.
It is agreed and understood that for a reduced premium, the following is amended:
PART I - DEFINITIONS is amended as follows:
The definitions for private staff, incidental worker, leased worker and temporary
worker are deleted.
PART II - WHAT IS COVERED is amended as follows:
Section B., Limited Employment Practices Liability Coverage is deleted.
PART III - LIMITS is amended as follows:
Section C., Limited Employment Practices Liability is deleted.
PART IV - DEFENSE COVERAGE AND CLAIM EXPENSE is amended as follows:
Section A. reference to 'Limited Employment Practices Liability' is deleted.
Section C.2., is deleted.
PART V - WHAT IS NOT COVERED - EXCLUSIONS is amended as follows:
Section A. reference to 'Limited Employment Practices Liability' is deleted.
Section C. is deleted.
PART VI - YOUR DUTIES is amended as follows:
Section C. reference to 'or wrongful employment act ' is deleted.
PART VII - CONDITIONS is amended as follows:
Section A., Policy Period and Territory is deleted and replaced with the following:
A. Policy Period and Territory. The policy period is stated on the Declarations Page.
This policy applies to an occurrence which takes place anywhere in the world.

PEL-EPLI-MA (07/01)

Exhibit C Page 000222

Page 1 of 1

Fungi Liability Exclusion

With respect to coverage provided by this endorsement, all provisions and
conditions of the policy apply unless they are changed by this endorsement.
It is agreed and understood that:
Part V. WHAT IS NOT COVERED - EXCLUSIONS . The following paragraph is added:
Fungi, Wet or Dry Rot, or Bacteria
Arising directly or indirectly, in whole or in part, out of the actual or alleged or
threatened inhalation of, ingestion of, contact with, aggravated by, exposure to,
existence of, or presence of any fungi, wet or dry rot, or bacteria.
For the purposes of this exclusion, the following definition is added to the Policy:
Fungi means any type or form of fungus, including but not limited to all forms of
mold or mildew, and any mycotoxins, spores, scents, vapors, gas or substance,
including any by-products, produced or released by fungi.

PEL-FUNEX-MA (07/02)

Exhibit C Page 000223

Page 1 of 1

Endorsement to Policy #: PCG 0006235889
Policy Period: 01/01/2014

Endorsement Effective Date: 01/01/2014

- 01/01/2015

PERSONAL EXCESS LIABILITY POLICY
SUPPLEMENTAL DEFENSE COVERAGE - EXCESS LIABILITY

With respect to coverage provided by this endorsement, all provisions and conditions of
the policy apply unless they are changed by this endorsement.
It is agreed and understood that PART IV, DEFENSE COVERAGE AND CLAIM EXPENSE,
Section D. Expanded Defense Coverage, is deleted and replaced with the following:
For an additional premium, we will provide supplemental defense coverage in the amount
of $ 50,000 while defending an insured person for any suit seeking covered damages for
the reasonable expenses for a law firm of your choice to review and consult on the
defense of any occurrence covered by Excess Liability under this policy. This coverage
applies only to expnses incurred after the date our defense has begun and any applicable
deductible has been applied.

PEL- SDCE-MA (07/01)

Exhibit C Page 000224

Page 1 of 1