BLUEPRINT 2010 ACORD CERTIFICATE OF INSURANCE CHANGES CONSTRUCTION PRACTICE LIKELY ISSUES CONSTRUCTION CONTRACTS

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1 CONSTRUCTION PRACTICE BLUEPRINT September ACORD CERTIFICATE OF INSURANCE CHANGES Many of you have heard that ACORD, the licensing company for insurance forms, has amended their certificate requirements. The changes are in response to concerns raised by various state insurance commissioners that certificates of insurance must comply with coverage provided by the insurance policy being represented. The new rules, now in effect, govern how insurance brokers and companies issue certificates. Willis believes that this change will impact construction and real estate entities in important ways; this issue of Blueprint provides guidance on how to proceed. LIKELY ISSUES In recent years contracts of all types have become more precise in requiring specific insurance coverages to be provided and in how certificates of insurance read. The part of the certificate that has been routinely amended involves cancellation provisions and what notifications are required in the event a carrier or insured cancels the policy. Attached to this bulletin are the forms being implemented by ACORD. New certificates will now evidence that the cancellation notice will be delivered in accordance with policy provisions. Previously this read insurer will endeavor to mail days written notice to the certificate holder, but failure to do so would not have changed the obligation or liability of the insurer. Under the new regulations, this is no longer the case. As a practical matter, mid-term cancellations are fairly rare; hence, this issue does not often arise. However, many contract requirements do discuss this and require stronger wording in many cases, so this change creates the need to discuss how to approach this with all parties involved. In reading this change it is clear that a series of FAQs and strategies need to be considered to assure that all parties are aware of the change and, at the same time, that construction and related contract requirements are understood and discussed. Several scenarios seem likely as this change occurs, and we point these out to all impacted parties to provide guidance as to how to approach this. CONSTRUCTION CONTRACTS 1. All contracts must be reviewed as part of a renewal negotiation; those with precise language for cancellation provisions on certificates need to be identified. Those which have standard certificate requirements should have no issues with the new wording. In cases where the contract calls for specific notification, the parties need to discuss whether the contract can be amended or a revised cancellation wording is needed. If the

2 upstream party insists on its cancellation notification wording, then Willis can assist you in modifying the insurance policy to meet the contract specifications. 2. As for the downstream contractual party, a number will likely have challenges meeting the notification requirements. We expect that a significant amount of discussions and negotiations will take place among the contractual parties, resulting, in some cases, in contractual non compliance. 3. Where the contract requires stronger notification and the upstream party insists that it be complied with, further discussions will be called for. INSURANCE CARRIERS Most carriers do not add specific notification of cancellation on to their policies. This is true for cancellation as well as other amendments such as additional insured requirements. For construction, additional insured endorsements often automatically address additional insureds from a liability standpoint as required by contract. (Many are more precise in that they require contracts to be written. ) That being noted, most carriers will add specific additional insureds, including notification wordings, when these are negotiated at the time the contracts are written. This allows a certificate to be issued which represents what the policy says about the cancellation notification to that particular additional insured. Some construction carriers are developing endorsements that allow use of the broader notification wording on the certificates. In particular, the major construction insurance carriers should be in a position to provide support on these as the contracts require. We expect that all carriers will respond on a contract-by-contract basis as requested, but blanket endorsements that allow broad flexibility will be less widely available other than for larger customers of the carriers. STRATEGIES Clearly, planning is necessary to assure that disruption caused by these changes is minimized. A thoughtful approach will reduce concern by all parties. 1. Review all open certificates early, as part of renewal planning. Ninety to 120 days prior to renewal, all ongoing certificates should be reviewed against the contracts and those with amended cancellation wording identified. 2. In cases where the contract calls for specific notification, initiate a discussion with the upstream party as to what they will accept when the renewal certificates are issued. In some cases upstream parties will accept the new certificates and no further action will be needed. 3. In other cases we expect that a further conversation will need to occur with the carrier to amend the policy to meet the contractual requirements. 4. As mentioned, a number of carriers have expressed support for listing the individual firms requiring notification prior to cancellation. There is an ISO endorsement (IL ) that can be used for this purpose (see attached) for several lines. Most carriers have filed a version of this form (Travelers, Zurich, C N A, Liberty Mutual, Hartford, etc.) which can be used to provide prior notification when necessary and as negotiated with them. 5. Most carriers are requiring that the specific firms to be notified be endorsed on the policy rather than a blanket approach, as the latter puts them in a position to have to send notification and they will need the information to do so. We are continuing conversations with various carriers to get the most favorable wordings. Again, we expect that larger clients will have more negotiating power to add blanket-type wording, but in many cases the carriers may require specific names to be included. 6. In some cases we believe carriers may not agree to add specific requirements for cancellation; this will require discussing other courses of action, including possibly discussing the account with other carriers. The key to this change is continual communications and thoughtful strategies on how to make sure this is not disruptive to normal contracting or lender requirements. We expect this issue to create some challenges in the near term which will gradually ease as various parties understand the new requirements and make contractual and commercial changes so that the certificates accurately reflect the policy coverages. As Willis works with these changes we will provide additional information on best practices to comply. 2 Willis North America 9/10

3 Attached to this document are frequently asked or anticipated questions as well as the sample ISO endorsement which can be used to add specific cancellation notification as necessary. In addition the various impacted certificates and evidence of property coverage forms are included for reference. Please reach out to your Client Advocates as questions arise. Thank you for your understanding and patience as these changes are implemented. FAQs Below, we respond to some frequently asked questions that we anticipate from our clients. 1. WHY HAS ACORD CHANGED THE CANCELLATION LANGUAGE ON THEIR CERTIFICATE FORMS? ACORD has indicated that the cancellation language was changed to comply with state insurance law. A certificate is not an insurance policy and does not amend, extend or alter the coverage afforded by the policies evidenced on the certificate. The old text was easily manipulated by insurance agents to reflect what may or may not have been on the policy. The fill-in field for number of days only allowed for one scenario. The amount of advance notice required under an insurance policy may vary based upon a carrier s own practices or on different regulatory requirements. For example, many policies may be cancelled with 10 days notice for non-payment, and 30 days notice for other reasons. 2. CAN WILLIS AMEND THE NEW CANCELLATION LANGUAGE? No, Willis cannot amend the standard cancellation language found on the ACORD forms. Several states require ACORD forms to be filed and in order to be compliant with state insurance law, we cannot alter the new cancellation language in any way. 3. WE HAVE SEVERAL CONTRACTS WHERE THE OTHER PARTY REQUIRES WRITTEN NOTICE OF CANCELLATION 30 DAYS PRIOR TO CANCELLATION. BROKERS NORMALLY SHOW THIS ON THE CERTIFICATE BY X ING OUT ENDEAVOR TO AND INPUTTING 30 DAYS IN THE FILL-IN FIELD. HOW DO BROKERS NOW CONVEY 30 DAYS NOTICE OF CANCELLATION? There are two ways to convey 30 days (or other specific days) notice of cancellation: a. The easiest is to attach a copy of the actual policy cancellation provisions to the certificate. This may satisfy the certificate holder that at minimum the policy holder will have sufficient time to replace coverage if cancelled. b. The other option is to secure a cancellation and notification endorsement from the insurance carrier. There may be an additional premium cost from some carriers. c. NOTE: As stated, Willis has reached out to many carriers and been assured by most of them that they will work with their valued clients in amending policies as needed to support their business relationships. However, we expect that they will be somewhat less than enthused by this, as they were not anticipating providing their various certificate holders notification contractually, so this change is adding some potential expense to the carriers to comply if notification becomes necessary. d. Since this is a change from previously issued ACORD forms, be sure to review any outstanding contracts for any cancellation notice obligations and address with the proper policy conditions to meet these requirements. 3 Willis North America 9/10

4 4. WE CURRENTLY REQUIRE PARTIES CONTRACTING WITH US TO PROVIDE NOTIFICATION OF CANCELLATION AS PART OF OUR CERTIFICATE REQUIREMENTS. HOW DO WE ADDRESS THIS ISSUE IF OUR SUB CONTRACTORS CAN T PROVIDE THE APPROPRIATE CERTIFICATE OR POLICY ENDORSEMENT TO COMPLY WITH OUR REQUIREMENTS? This is a difficult area in which to assure contract compliance. As a practical matter, a few points should be made about certificates. a. CERTIFICATES ARE NOT COVERAGE. While this point has been made many times over the years it bears reinforcing. Certificates are simply evidence of coverage and do not amend or modify any insurance policy provision. Therefore, while they are helpful in monitoring contractual insurance requirements they can t be relied on for coverage in the event of a loss. Only the policy dictates response to a claim. b. MANY LOWER TIER SUBS MAY HAVE A DIFFICULT TIME GETTING CARRIERS TO AMEND POLICIES TO GIVE THE ABSOLUTE ASSURANCE THAT NOTIFICATION OF CANCELLATION WILL BE SENT TO OTHER PARTIES. This will put upper tier certificate holders in the position to either accept the fact that notification is unlikely from the carrier or amend their contracts to require the downstream party to tell them of coverage cancellation contractually. In effect this makes the contracting party responsible to notify the upstream party regardless of whether the insurance company does so. c. AS WITH ALL CERTIFICATES AN ACTIVE MANAGEMENT SYSTEM IS ESSENTIAL TO MONITOR WHAT COVERAGE IS IN EFFECT DURING THE TERM OF THE CONTRACT AND ANY RELATED REQUIREMENT FOR COVERAGE AFTER THE JOB IS COMPLETE. In many cases, having the certificate on file with the contract or job file at least allows a starting point to find coverage when a loss occurs at a later date. While it does not guarantee that the coverage is in effect at some later point, at least it points to potential coverage in force. 5. A WILLIS COMPETITOR HAS APPROACHED ME AND CLAIMED THEY WILL ISSUE THE OLDER VERSIONS OF THE ACORD CERTIFICATES IF WE GIVE THEM OUR BUSINESS. CAN THIS BE TRUE? ACORD requires only the newest versions of their certificates be used in order to comply with state insurance law. It may be a violation of state law to use an older version of the ACORD; it may be a violation of our contract with ACORD. We suggest open discussions with the contracting party to amend this provision and either accept a copy of the carrier cancellation provision endorsement or accept a cancellation notice endorsement naming the contracting party. 6. DO YOU HAVE A SUMMARY SHEET I CAN GIVE TO MY BUSINESS PARTNERS? For discussion purposes, this bulletin can be used as well as others from industry associations which seek to clarify these changes. 4 Willis North America 9/10

5 7. HOW DO REAL ESTATE CLIENTS COMPLY WHEN THEY ARE REQUIRED TO USE THE 2003 VERSION OF THE ACORD 27 AND 28 BECAUSE THE LENDERS ARE REQUIRING THE WORDING CONVEYS ALL THE RIGHTS AND PRIVILEGES AFFORDED UNDER THE POLICY WHICH IS ABSENT FROM THE NEW FORMS? Any agent or insurance company who provides a lender with a document purporting to extend policy rights could be in violation of state insurance laws if it is not filed as a policy form, and the ACORD 27 and ACORD 28 are not filed as policy forms. ACORD 75 binders are often provided to lenders as proof of coverage, and the insurance laws of most states require lenders to accept binders for this purpose in lieu of the actual policy. Although state insurance laws and contractual licensing restrictions prevent us from providing certain outdated forms, we would be pleased to provide your lender with an insurance binder (ACORD 75) and/or the current versions of the evidence of insurance forms (the ACORD 27 or ACORD 28). 8. CAN WE ADD VERBIAGE FROM THE ACORD VERSION TO THE NEW VERSION? SPECIFICALLY, THAT THIS CERTIFICATE CONVEYS ALL THE RIGHTS AND PRIVILEGES AFFORDED UNDER THE POLICY? a. No, ACORD certificate of insurance forms are copyrighted forms, and we use them under a license granted by ACORD. Willis does not have the authority to modify the printed wording of the forms. b. Some states require that certificate of insurance forms be filed with the Insurance Department and approved before use just like insurance policies. If a form is modified in any way, the modified version of the form may have to be filed/approved by the Insurance Department in those states before use. Even if the modified version of a certificate of insurance form is filed/approved in a given state, we cannot use the altered form of a certificate unless we have written authority from the insurer to do so. c. If we change these documents to appease our clients, an insurer could assert that we are answerable for situations where an insurer has to comply with the promises made. This could lead to potential legal consequences. 9. THE CERTIFICATE HOLDER STILL BELIEVES THE OLD LANGUAGE ON THE CERTIFICATE, CONVEY, MEANS POLICY RIGHTS? IS THIS TRUE? The ACORD DOES NOT convey policy rights; therefore, this language was removed from the current version. 10. IF A CERTIFICATE DOESN T ACTUALLY GIVE ALL THE RIGHTS AND PRIVILEGES AFFORDED UNDER THE POLICY, HOW DO WE SATISFY OUR CLIENT S LENDER REQUESTS? a. Provide a Lenders Loss Payable endorsement or similar endorsement amending the policy s Notice Condition, so that the one to whom a certificate has been issued 5 Willis North America 9/10

6 will be given notice of cancellation or nonrenewal if they meet the conditions precedent itemized in those provisions. (Side note: this is how personal lines carriers satisfy lender requests.) b. Provide binders of insurance most states require banks to accept a binder in lieu of a certificate or the actual policy. c. Provide a copy of the policy (not recommended). 11. WE HAVE GOTTEN SPECIFIC REQUESTS FOR CANCELLATION PROVISIONS IN ACCORDANCE WITH FEDERAL ACQUISITION REGULATIONS AND OTHER AGENCIES WHICH ARE PRECISE IN WHAT IS ACCEPTABLE TO THE GOVERNMENTAL AGENCY. HOW ARE THESE AFFECTED BY THIS CHANGE? These fall under the same requirements as other certificates. We have heard comments that federal law trumps state law, but that may not apply to insurance policies which are state regulated. In those cases where specific notification language is required it must be negotiated with the carrier and added to the policy. When the certificate is then issued these must be attached to evidence that the policy complies with the contract requirements. CONTACTS For more information, or if you have any questions, please contact your Willis Client Advocate or any of the following: Tim McGinnis tim.mcginnis@willis.com Ron Despain ron.despain@willis.com Gloria Bandy gloria.bandy@willis.com For past issues of our publications on other topics of interest, please visit the Willis Construction Practice website. Willis is the leading construction broker in the world. With more than 800 construction Associates in North America in 60 offices, we offer unparalleled expertise to the construction industry locally, nationally and globally. Our clients range from local contractors to international integrated firms. The observations, comments and suggestions we have made in this publication are advisory and are not intended nor should they be taken as legal advice. Please contact your own legal adviser for an analysis of your specific facts and circumstances. 6 Willis North America 9/10

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8 CERTIFICATE OF PROPERTY INSURANCE DATE (MM/DD/YYYY) THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. If this certificate is being prepared for a party who has an insurable interest in the property, do not use this form. Use ACORD 27 or ACORD 28. PRODUCER INSURED COVERAGES CERTIFICATE NUMBER: CONTACT NAME: PHONE (A/C, No, Ext): ADDRESS: PRODUCER CUSTOMER ID: INSURER A : INSURER B : INSURER C : INSURER D : INSURER E : INSURER F : LOCATION OF PREMISES / DESCRIPTION OF PROPERTY (Attach ACORD 101, Additional Remarks Schedule, if more space is required) INSURER(S) AFFORDING COVERAGE FAX (A/C, No): REVISION NUMBER: NAIC # THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR LTR POLICY EFFECTIVE POLICY EXPIRATION TYPE OF INSURANCE POLICY NUMBER COVERED PROPERTY LIMITS DATE (MM/DD/YYYY) DATE (MM/DD/YYYY) PROPERTY CAUSES OF LOSS BASIC BROAD SPECIAL EARTHQUAKE WIND FLOOD INLAND MARINE CAUSES OF LOSS NAMED PERILS CRIME TYPE OF POLICY DEDUCTIBLES BUILDING CONTENTS BOILER & MACHINERY / EQUIPMENT BREAKDOWN TYPE OF POLICY POLICY NUMBER SPECIAL CONDITIONS / OTHER COVERAGES (Attach ACORD 101, Additional Remarks Schedule, if more space is required) BUILDING PERSONAL PROPERTY BUSINESS INCOME EXTRA EXPENSE RENTAL VALUE BLANKET BUILDING BLANKET PERS PROP BLANKET BLDG & PP CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORIZED REPRESENTATIVE ACORD 24 (2009/09) ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD

9 CLAIMS-MADE GEN'L AGGREGATE LIMIT APPLIES PER: PRO- POLICY JECT LOC AUTOMOBILE LIABILITY UMBRELLA LIAB EXCESS LIAB CERTIFICATE OF LIABILITY INSURANCE OCCUR OCCUR CLAIMS-MADE MED EXP (Any one person) PERSONAL & ADV INJURY GENERAL AGGREGATE PRODUCTS - COMP/OP AGG EACH OCCURRENCE AGGREGATE DATE (MM/DD/YYYY) THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER INSURED COVERAGES CERTIFICATE NUMBER: REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR ADDL SUBR LTR TYPE OF INSURANCE INSR WVD POLICY NUMBER POLICY EFF (MM/DD/YYYY) POLICY EXP (MM/DD/YYYY) LIMITS GENERAL LIABILITY EACH OCCURRENCE DAMAGE TO RENTED COMMERCIAL GENERAL LIABILITY PREMISES (Ea occurrence) ANY AUTO ALL OWNED AUTOS HIRED AUTOS SCHEDULED AUTOS NON-OWNED AUTOS DED RETENTION WORKERS COMPENSATION AND EMPLOYERS' LIABILITY Y / N ANY PROPRIETOR/PARTNER/EXECUTIVE OFFICER/MEMBER EXCLUDED? N / A (Mandatory in NH) If yes, describe under DESCRIPTION OF OPERATIONS below CONTACT NAME: PHONE (A/C, No, Ext): ADDRESS: INSURER A : INSURER B : INSURER C : INSURER D : INSURER E : INSURER F : INSURER(S) AFFORDING COVERAGE COMBINED SINGLE LIMIT (Ea accident) BODILY INJURY (Per person) BODILY INJURY (Per accident) PROPERTY DAMAGE (Per accident) WC STATU- TORY LIMITS E.L. EACH ACCIDENT FAX (A/C, No): OTH- ER E.L. DISEASE - EA EMPLOYEE E.L. DISEASE - POLICY LIMIT NAIC # DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (Attach ACORD 101, Additional Remarks Schedule, if more space is required) CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORIZED REPRESENTATIVE ACORD 25 (2010/05) ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD

10 EVIDENCE OF PROPERTY INSURANCE DATE (MM/DD/YYYY) THIS EVIDENCE OF PROPERTY INSURANCE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE ADDITIONAL INTEREST NAMED BELOW. THIS EVIDENCE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS EVIDENCE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE ADDITIONAL INTEREST. AGENCY PHONE (A/C, No, Ext): COMPANY FAX (A/C, No): ADDRESS: CODE: AGENCY CUSTOMER ID #: INSURED SUB CODE: LOAN NUMBER POLICY NUMBER EFFECTIVE DATE EXPIRATION DATE CONTINUED UNTIL TERMINATED IF CHECKED THIS REPLACES PRIOR EVIDENCE DATED: PROPERTY INFORMATION LOCATION/DESCRIPTION THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS EVIDENCE OF PROPERTY INSURANCE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. COVERAGE INFORMATION COVERAGE / PERILS / FORMS AMOUNT OF INSURANCE DEDUCTIBLE REMARKS (Including Special Conditions) CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. ADDITIONAL INTEREST NAME AND ADDRESS LOAN # MORTGAGEE LOSS PAYEE ADDITIONAL INSURED AUTHORIZED REPRESENTATIVE ACORD 27 (2009/12) ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD

11 PRODUCER NAME, CONTACT PERSON AND ADDRESS EVIDENCE OF COMMERCIAL PROPERTY INSURANCE PHONE (A/C, No, Ext): COMPANY NAME AND ADDRESS NAIC NO: DATE (MM/DD/YYYY) THIS EVIDENCE OF COMMERCIAL PROPERTY INSURANCE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE ADDITIONAL INTEREST NAMED BELOW. THIS EVIDENCE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS EVIDENCE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE ADDITIONAL INTEREST. FAX (A/C, No): CODE: AGENCY CUSTOMER ID #: NAMED INSURED AND ADDRESS ADDRESS: SUB CODE: IF MULTIPLE COMPANIES, COMPLETE SEPARATE FORM FOR EACH POLICY TYPE LOAN NUMBER POLICY NUMBER ADDITIONAL NAMED INSURED(S) EFFECTIVE DATE EXPIRATION DATE THIS REPLACES PRIOR EVIDENCE DATED: CONTINUED UNTIL TERMINATED IF CHECKED PROPERTY INFORMATION (Use REMARKS on page 2, if more space is required) LOCATION/DESCRIPTION BUILDING OR BUSINESS PERSONAL PROPERTY THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS EVIDENCE OF PROPERTY INSURANCE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. COVERAGE INFORMATION PERILS INSURED BASIC BROAD SPECIAL COMMERCIAL PROPERTY COVERAGE AMOUNT OF INSURANCE: YES NO N/A BUSINESS INCOME RENTAL VALUE Actual Loss Sustained; # of months: BLANKET COVERAGE If YES, indicate value(s) reported on property identified above: TERRORISM COVERAGE Attach Disclosure Notice / DEC IS THERE A TERRORISM-SPECIFIC EXCLUSION? IS DOMESTIC TERRORISM EXCLUDED? LIMITED FUNGUS COVERAGE FUNGUS EXCLUSION (If "YES", specify organization's form used) REPLACEMENT COST AGREED VALUE COINSURANCE If YES, % EQUIPMENT BREAKDOWN (If Applicable) ORDINANCE OR LAW - Coverage for loss to undamaged portion of bldg FLOOD (If Applicable) - Demolition Costs EARTH MOVEMENT (If Applicable) - Incr. Cost of Construction WIND / HAIL (If Subject to Different Provisions) PERMISSION TO WAIVE SUBROGATION IN FAVOR OF MORTGAGE HOLDER PRIOR TO LOSS CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. ADDITIONAL INTEREST MORTGAGEE LENDERS LOSS PAYABLE NAME AND ADDRESS CONTRACT OF SALE LENDER SERVICING AGENT NAME AND ADDRESS AUTHORIZED REPRESENTATIVE ACORD 28 (2009/12) Page 1 of ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD