ARCH SPECIALTY INSURANCE CO. COMMERCIAL PROPERTY DECLARATIONS

Transcription

1 Home Office Address: Regency Parkway Drive Omaha, NE ARCH SPECIALTY INSURANCE CO. (A Nebraska Corporation) Administrative Address: One Liberty Plaza 53rd Floor New York, NY Tel: (415) Policy Number: ESP COMMERCIAL PROPERTY DECLARATIONS Named Insured: WASHINGTON COUNTIES RISK POOL Address: 2558 R.W. JOHNSON ROAD SW, SUITE 106 TUMWATER, WASHINGTON UNITED STATES Policy Period: From: October 1, 2013 To: October 1, 2014 at 12:01 A.M., Standard Time at your mailing address shown above. Business Description: Municipality THIS POLICY CONSISTS OF THE FOLLOWING COVERAGE PARTS FOR WHICH A PREMIUM IS INDICATED. THIS PREMIUM MAY BE SUBJECT TO ADJUSTMENT. Commercial Property Coverage Part Premium Shown is payable at inception. PREMIUM $118, Total $118, LOCATIONS COVERED: As per Schedule on File with Company FORMS AND ENDORSEMENTS Applying to this Coverage Part and Made Part of this Policy at Time of Issue: See attached Schedule of Forms and Endorsements. ISSUE DATE: December 2, 2013 Surplus Lines Agent Name: RISK PLACEMENT SERVICES, INC. Surplus Lines Mailing Address: 100 Montgomery Street, Suite 1 San Francisco CA EXP Page 1 of 2

2 Surplus Lines Agent License: Surplus Lines State Taxes were filed: WA Arch Specialty Insurance Company is licensed in the state of Nebraska only. 06 EXP Page 2 of 2

3 SCHEDULE OF FORMS AND ENDORSEMENTS NAMED INSURED: WASHINGTON COUNTIES RISK POOL TERM: October 1, 2013 to October 1, 2014 POLICY NUMBER: ESP ENDT. NO. FORM NO. TITLE 06 ML SIGNATURE PAGE (ARCH SPECIALTY) 1 02 EXP MINIMUM EARNED PREMIUM CLAUSE - PERCENTAGE 00 EXP COMMON POLICY CONDITIONS 2 02 EXP CANCELLATION CLAUSE 3 00 ML SERVICE OF SUIT 06 CP CLAIMS HANDLING PROCEDURES (Arch Specialty Ins. Co.) 4 00 EXP TOTAL TERRORISM EXCLUSION 00 ML U.S. TREASURY DEPARTMENT'S OFFICE OF FOREIGN ASSETS CONTROL ("OFAC") 5 00 EXP OCCURRENCE LIMIT OF LIABILITY ENDORSEMENT 6 02 EXP EXCLUSION AND LIMITED ADDITIONAL COVERAGE FOR FUNGUS 7 02 EXP ELECTRONIC PROPERTY & VIRUS - EXCLUSION 8 02 EXP SEEPAGE/POLLUTION/CONTAMINATION EXCLUSION 02 EXPS EXCESS PHYSICAL DAMAGE SCHEDULE 02 EXP EXCESS PHYSICAL DAMAGE COVERAGE FORM 9 02 EXP DROP DOWN ENDORSEMENT (EARTHQUAKE AND/OR FLOOD, ONLY) 10 MANDATORY FORMS 11 BROKER MANUSCRIPT FORM 12 POLICY CHANGES 00 ML Page 1 of 1

4 Signature Page IN WITNESS WHEREOF, Arch Specialty Insurance Company has caused this policy to be executed and attested. Michael R. Murphy President Patrick Nails Secretary 06 ML Page 1 of 1

5 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. MINIMUM EARNED PREMIUM CLAUSE PERCENTAGE In the event of cancellation of this policy by the Insured, a minimum premium of 25% of the original policy premium shall become earned; any conditions of the policy to the contrary notwithstanding. Failure of the Insured to make timely payment of premium shall be considered a request by the Insured for the Company to cancel. In the event of such cancellation by the Company for non-payment of premium, the minimum premium shall be due and payable; provided, however, such non-payment cancellation shall be rescinded if the Insured remits the full premium due within 10 days of receiving it. In the event of any other cancellation by the Company, the earned premium shall be computed pro rata, not subject to the minimum premium. All other terms and conditions of this policy remain unchanged. Endorsement Number: 1 Policy Number: ESP Named Insured: WASHINGTON COUNTIES RISK POOL This endorsement is effective on the inception date of this Policy unless otherwise stated herein: Endorsement Effective Date: October 1, EXP Page 1 of 1

6 COMMON POLICY CONDITIONS All Coverage Parts included in this policy are subject to the following conditions. A. Cancellation 1. The first Named Insured shown in the Declarations may cancel this policy by mailing or delivering to us advance written notice of cancellation. 2. We may cancel this policy by mailing or delivering to the first Named Insured written notice of cancellation at least: a. 10 days before the effective date of cancellation if we cancel for nonpayment of premium; or b. 30 days before the effective date of cancellation if we cancel for any other reason. 3. We will mail or deliver our notice to the first Named Insured s last mailing address known to us. 4. Notice of cancellation will state the effective date of cancellation. The policy period will end on that date. 5. If this policy is cancelled, we will send the first Named Insured any premium refund due. If we cancel, the refund will be pro rata. If the first Named Insured cancels, the refund may be less than pro rata. The cancellation will be effective even if we have not made or offered a refund. 6. If notice is mailed, proof of mailing will be sufficient proof of notice. B. Changes This policy contains all the agreements between you and us concerning the insurance afforded. The first Named Insured shown in the Declarations is authorized to make changes in the terms of this policy with our consent. This policy s terms can be amended or waived only by endorsement issued by us and made a part of this policy. C. Examination Of Your Books And Records We may examine and audit your books and records as they relate to this policy at any time during the policy period and up to three years afterward. D. Inspections And Surveys 1. We have the right to: a. Make inspections and surveys at any time; b. Give you reports on the conditions we find; and c. Recommend changes. 2. We are not obligated to make any inspection, surveys, reports or recommendations and any such actions we do undertake relate only to insurability and the premiums to be charged. 00 EXP Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 1 of 2

7 We do not make safety inspections. We do not undertake to perform the duty of any person or organization to provide for the health or safety of workers or the public. And we do not warrant that conditions: a. Are safe or healthful; or b. Comply with laws, regulations, codes or standards. 3. Paragraphs 1. and 2. of this condition apply not only to us, but also to any rating, advisory, rate service or similar organization which makes insurance inspections, surveys, reports or recommendations. 4. Paragraph 2. of this condition does not apply to any inspections, surveys, reports or recommendations we may make relative to certification, under state or municipal statutes, ordinances or regulations, of boilers, pressure vessels or elevators. E. Premiums The first Named Insured shown in the Declarations: 1. Is responsible for the payment of all premiums; and 2. Will be the payee for any return premiums we pay. F. Transfer Of Your Rights And Duties Under This Policy Your rights and duties under this policy may not be transferred without our written consent except in the case of death of an individual named insured. If you die, your rights and duties will be transferred to your legal representative but only while acting within the scope of duties as your legal representative. Until your legal representative is appointed, anyone having proper temporary custody of your property will have your rights and duties but only with respect to that property. 00 EXP Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 2 of 2

8 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. The terms of this endorsement supersede all other similar provisions included in The Policy and any attached endorsements: CANCELLATION CLAUSE This policy may be cancelled by the Insured by surrender thereof to the Company or by mailing to the Company written notice stating when thereafter such cancellation shall be effective. This policy may be cancelled by the Company by mailing to the Insured at the address shown in this policy or last known address, written notice, with or without tender of the excess or paid premium above the pro rata premium for the expired time, stating when, not less than ninety (90) days thereafter, or not less than ten (10) days in the event of non-payment of premiums, such cancellation shall be effective. The mailing of notice aforesaid shall be sufficient proof of notice. The effective date and hour of cancellation stated in the notice, whether by the Insured or this Company, shall be equivalent to mailing. If the Insured cancels, earned premiums shall be computed in accordance with the customary short rate table and procedure. If the Company cancels, earned premiums shall be computed pro rata. Premium adjustment may be made as soon as practicable after cancellation becomes effective. All other terms and conditions of this policy remain unchanged. Endorsement Number: 2 Policy Number: ESP Named Insured: WASHINGTON COUNTIES RISK POOL This endorsement is effective on the inception date of this Policy unless otherwise stated herein: Endorsement Effective Date: October 1, EXP Page 1 of 1

9 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. It is agreed that: SERVICE OF SUIT 1. In the event of the failure of the Insurer to pay any amount claimed to be due hereunder, the Insurer, at the request of the Insured, will submit to the jurisdiction of any court of competent jurisdiction within the United States and will comply with all requirements necessary to give such court jurisdiction. All matters arising under this Policy shall be determined in accordance with the law and practice of such Court, provided that nothing shall prohibit the Insurer from removing any action, suit or proceeding to a United States District Court. The Insurer shall abide by the final decision of such court or any appellate court in the event of an appeal. 2. Service of process in the above described action, suit or proceeding may be made upon: General Counsel, Arch Insurance Group Inc., 300 Plaza Three, Jersey City, NJ Upon the request of the Insured, such General Counsel shall give a written undertaking to enter an appearance on behalf of the Insurer in the event that such an action, suit or proceeding shall be instituted. 3. Pursuant to any statute of any state, territory or district of the United States which makes provision therefore, the Insurer hereby designates the Superintendent, Commissioner, or Director of Insurance or other officer specified in such statute as its true and lawful attorney upon whom may be served any lawful process in any action, suit or proceeding instituted against the Insurer upon this Policy. The Superintendent, Commissioner or Director of Insurance or other officer is hereby authorized and directed to accept service of process on behalf of the Insurer in any such action, suit or proceeding and to mail a copy of such process to the above mentioned General Counsel. All other terms and conditions of this Policy remain unchanged. Endorsement Number: 3 Policy Number: ESP Named Insured: WASHINGTON COUNTIES RISK POOL This endorsement is effective on the inception date of this Policy unless otherwise stated herein: Endorsement Effective Date: October 1, ML Page 1 of 1

10 Claims Handling Procedures An important value of your insurance coverage is the ability of the insurance company to respond when you have a claim. Arch Specialty Insurance Company is committed to providing its insureds with effective claim services. Notices of each incident, claim or suit must be sent immediately to: Arch Specialty Insurance Co. E & S Property Claims Mill Valley Road, Suite 210 P.O. Box Omaha, NE Phone: ARCH (2724) Fax: Claims@ArchInsurance.com You will be contacted by a representative of the company s Claim Department. This representative will confirm receipt of the loss notice directly to you, provide a company claim number for all future correspondence, refer to an adjuster if necessary, and discuss further handling of the claim. 06 CP Page 1 of 1

11 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. TOTAL TERRORISM EXCLUSION This endorsement modifies insurance provided under the Policy. A. The following definition is added and applies under this endorsement whenever the term terrorism, is enclosed in quotation marks: Terrorism means activities against persons, organizations or property of any nature: 1. that involve the following or preparation for the following: a. use or threat of force or violence; or b. commission or threat of a dangerous act; or c. commission or threat of an act that interferes with or disrupts an electronic, communication, information, or mechanical system; and 2. When: a. the effect is to intimidate or coerce a government or a civilian population or any segment thereof, or to disrupt any segment of the economy; and/or b. it appears that the intent is to intimidate or coerce a government or a civilian population, or to further a philosophical, political, ideological, religious, social or economic objective or to express (or express opposition to) a philosophical, political, ideological, religious, social or economic objective. B. The following exclusion is added: EXCLUSION OF TERRORISM We (the Company) will not pay for loss or damage caused directly or indirectly by terrorism, including action in hindering or defending against an actual or expected incident of terrorism. Such loss or damage is excluded regardless of any other cause or event that contributes concurrently or in any sequence to such loss or damage. This exclusion also applies when one or more of the following are attributed to an incident of terrorism : 1. The terrorism is carried out by means of the dispersal or application of radioactive material, or through the use of a nuclear weapon or device that involves or produces a nuclear reaction, nuclear radiation or radioactive contamination; or 2. Radioactive material is released, and it appears that one purpose of the terrorism was to release such material; or 3. The terrorism involves the use, release, or escape of nuclear materials, or that directly or indirectly results in nuclear reaction, nuclear radiation or radioactive contamination; or 4. The terrorism is carried out by means of the dispersal or application of pathogenic or poisonous biological or chemical materials; or 00 EXP Page 1 of 2

12 5. Pathogenic or poisonous biological or chemical materials are released, and it appears that one purpose of the terrorism was to release such materials. C. Application Of Other Exclusions 1. When the EXCLUSION OF TERRORISM applies in accordance with the terms of B.1., B.2. or B.3., such exclusion applies without regard to the Nuclear Hazard Exclusion in this Coverage Form, Coverage Part or Policy. 2. The EXCLUSION OF TERRORISM contained in this Endorsement replaces any terrorism exclusion contained in this Coverage Form, Coverage Part or Policy. 3. The terms and limitations of any terrorism exclusion, or the inapplicability or omission of a terrorism exclusion, do not serve to create coverage for any loss or damage which would otherwise be excluded under this Coverage Form, Coverage Part or Policy, such as losses excluded by the Nuclear Hazard Exclusion, War Exclusion, or the War And Military Action Exclusion. All other terms and conditions of this Policy remain unchanged. Endorsement Number: 4 Policy Number: ESP Named Insured: WASHINGTON COUNTIES RISK POOL This endorsement is effective on the inception date of this Policy unless otherwise stated herein: Endorsement Effective Date: October 1, EXP Page 2 of 2

13 U.S. TREASURY DEPARTMENT S OFFICE OF FOREIGN ASSETS CONTROL ( OFAC ) ADVISORY NOTICE TO POLICYHOLDERS No coverage is provided by this Policyholder Notice nor can it be construed to replace any provisions of your policy. You should read your policy and review your Declarations page for complete information on the coverages you are provided. This Notice provides information concerning possible impact on your insurance coverage due to directives issued by OFAC. Please read this Notice carefully. The Office of Foreign Assets Control (OFAC) administers and enforces sanctions policy, based on Presidential declarations of national emergency. OFAC has identified and listed numerous: Foreign agents; Front organizations; Terrorists; Terrorist organizations; and Narcotics traffickers; as Specially Designated Nationals and Blocked Persons. This list can be located on the United States Treasury s web site http// In accordance with OFAC regulations, if it is determined that you or any other insured, or any person or entity claiming the benefits of this insurance has violated U.S. sanctions law or is a Specially Designated National and Blocked Person, as identified by OFAC, this insurance will be considered a blocked or frozen contract and all provisions of this insurance are immediately subject to OFAC. When an insurance policy is considered to be such a blocked or frozen contract, no payments nor premium refunds may be made without authorization from OFAC. Other limitations on the premiums and payments also apply. 00 ML Includes copyrighted material of Insurance Services Page 1 of 1 Office, Inc. with its permission.

14 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. OCCURRENCE LIMIT OF LIABILITY ENDORSEMENT It is understood and agreed that the following special terms and conditions apply to this policy: 1. The Limit of Liability or Amount of Insurance shown on the Declarations Page of this policy, or endorsed onto this policy, is the total limit of the Company s liability applicable to each occurrence. Notwithstanding any other terms and conditions of this policy, in no event shall the liability of the Company exceed this limit or amount, irrespective of the number of locations involved. The term occurrence shall mean any one loss, disaster, casualty or series of losses, disasters or casualties, arising out of one event. The duration and extent of any one loss, disaster, casualty or series of losses, disasters or casualties will be limited to all losses or series of losses occurring during any period of 168 consecutive hours arising out of, and directly occasioned by, the same event. When the term applies to loss or series of losses from the perils of tornado, cyclone, hurricane, windstorm, hail, flood, earthquake, volcanic eruption, riot, riot attending a strike, civil commotion, and vandalism and malicious mischief, one event shall be construed to be all losses arising during a continuous period of 72 hours. When filing proof of loss, the Insured may elect the moment at which the 72 hour period shall be deemed to have commenced, which shall not be earlier than when the first loss occurs to any covered property. 2. The premium for this policy is based upon the Statement of Values on file with Company, or attached to this policy. In the event of loss hereunder, liability of the Company, subject to the terms of paragraph one (1) above, shall be limited to the least of the following: A. The actual adjusted amount of loss, less applicable deductible(s). B. (DELETED) C. The Limit of Liability or Amount of Insurance shown on the face of this policy or endorsed onto this policy. All other terms and conditions of this policy remain unchanged. Endorsement Number: 5 Policy Number: ESP Named Insured: WASHINGTON COUNTIES RISK POOL This endorsement is effective on the inception date of this Policy unless otherwise stated herein: Endorsement Effective Date: October 1, EXP Page 1 of 1

15 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. EXCLUSION AND LIMITED ADDITIONAL COVERAGE FOR FUNGUS This endorsement modifies insurance provided under all Coverage Parts: A. The following Exclusion is added: EXCLUSION - Fungus, Wet Rot, Dry Rot And Bacteria We will not pay for loss or damage caused directly or indirectly by the presence, growth, proliferation, spread or any activity of fungus, wet or dry rot or bacteria. Such loss or damage is excluded regardless of any other cause or event that contributes concurrently or in any sequence to the loss. But if fungus, wet or dry rot or bacteria results in a covered cause of loss, we will pay for the loss or damage caused by that covered cause of loss. This exclusion does not apply: 1. When fungus, wet or dry rot or bacteria results from fire or lightning; or 2. To the extent that coverage is provided in the Additional Coverage - Limited Coverage For Fungus, Wet Rot, Dry Rot And Bacteria with respect to loss or damage by a cause of loss other than fire or lightning. B. The following Additional Coverage is added: ADDITIONAL COVERAGE - Limited Coverage For Fungus, Wet Rot, Dry Rot And Bacteria 1. This limited coverage applies only when the fungus, wet or dry rot or bacteria is the result of one or more of the following causes that occurs during the policy period and only if all reasonable means were used to save and preserve the property from further damage at the time of and after that occurrence, and only if any loss resulting from the following is reported to us within 60 days of the occurrence. a. A covered cause of loss other than fire or lightning; or b. Flood, if the Flood Coverage Endorsement applies to the affected premises. 2. Under conditions described in item B.1. above, we will pay for loss or damage by fungus, wet or dry rot or bacteria. As used in this Limited Coverage, the term loss or damage means: a. Direct physical loss or damage to Covered Property caused by fungus, wet or dry rot or bacteria, including the cost of removal of the fungus, wet or dry rot or bacteria; b. The cost to tear out and replace any part of the building or other property as needed to gain access to the fungus, wet or dry rot or bacteria; and c. The cost of testing performed after removal, repair, replacement or restoration of the damaged property is completed, provided there is a reason to believe that fungus, wet or dry rot or bacteria are present. 3. The coverage provided under this Limited Coverage is limited to $15,000. Regardless of the number of claims, this limit is the most we will pay for the total of all loss or damage arising out of all occurrences which take place in a 12-month period (starting with the beginning of the present annual policy period). With respect to a particular occurrence of loss which 02 EXP Page 1 of 2

16 results in fungus, wet or dry rot or bacteria, we will not pay more than a total of $15,000 even if the fungus, wet or dry rot or bacteria continues to be present or active, or recurs, in a later policy period. 4. The coverage provided under this Limited Coverage does not increase the applicable Limit of Insurance on any Covered Property. If a particular occurrence results in loss or damage by fungus, wet or dry rot or bacteria, and other loss or damage, we will not pay more, for the total of all loss or damage, than the applicable Limit of Insurance on the affected Covered Property. If there is covered loss or damage to Covered Property, not caused by fungus, wet or dry rot or bacteria, loss payment will not be limited by the terms of this Limited Coverage, except to the extent that fungus, wet or dry rot or bacteria causes an increase in the loss. Any such increase in the loss will be subject to the terms of this Limited Coverage. C. The following Definition is added: Fungus means any type or form of fungus, including mold or mildew, and any mycotoxins, spores, scents or by-products produced or released by fungi. All other terms and conditions of this policy remain unchanged. Endorsement Number: 6 Policy Number: ESP Named Insured: WASHINGTON COUNTIES RISK POOL This endorsement is effective on the inception date of this Policy unless otherwise stated herein: Endorsement Effective Date: October 1, EXP Page 2 of 2

17 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ELECTRONIC PROPERTY AND VIRUS - EXCLUSION This endorsement modifies insurance provided under the following: A. It is agreed that the following definitions apply: ALL COVERAGE PARTS Electronic Data means information, facts or Computer Programs stored, created or used on, or transmitted to or from computer software (including systems and applications software) on hard or floppy discs, CD-ROMs, tapes, drives, cells, data processing devices or any other repositories which are used with electronically controlled equipment. Computer programs means a set of related electronic instructions which direct the operations and functions of a computer or device connected to it, which enable the computer or device to receive, process, store, retrieve, or send data. Virus means a harmful code or similar instructions introduced into or enacted on a computer system (including electronic data) or a network to which it is connected, designed to damage or destroy any part of the system or disrupt normal operations. B. The following exclusion applies: Damage to Electronic Data Damage to Electronic Data including any cost to replace or restore such Electronic Data that is caused by a Virus is not covered. Damage to Electronic Data caused by the willful or malicious alteration, manipulation or destruction of such Electronic Data by any employee, including a temporary or leased employee, or by any entity retained by you or for you to inspect, design, install, modify, repair or replace your computer systems or any part of those systems, is not covered. However, this exclusion does not apply to damage to Electronic Data arising from the following specified causes of loss, if these causes of loss are not otherwise excluded: fire, lightning, explosion, windstorm or hail, smoke, aircraft or vehicles, riot or civil commotion, vandalism, leakage from fire extinguishing equipment, sinkhole collapse, volcanic action, falling objects, weight of ice, snow or sleet, water damage. C. The following is added to the Business Income (and Extra Expense) Coverage Form, if it applies: Additional limitation interruption of computer operations Business Income loss incurred when a suspension of operations is caused by a destruction or corruption of Electronic Data or any loss or damage to Electronic Data caused by a Virus is not covered. Extra Expense loss incurred when action is taken to avoid or minimize a suspension of operations caused by destruction or corruption of Electronic Data or any loss or damage to Electronic Data caused by a Virus is not covered. 02 EXP Page 1 of 2

18 However, this limitation will not apply to destruction, corruption, loss or damage to Electronic Data arising from the following specified causes of loss, if these causes of loss are not otherwise excluded: fire, lightning, explosion, windstorm or hail, smoke, aircraft or vehicles, riot or civil commotion, vandalism, leakage from fire extinguishing equipment, sinkhole collapse, volcanic action, falling objects, weight of ice, snow or sleet, water damage. All other terms and conditions of this policy remain unchanged. Endorsement Number: 7 Policy Number: ESP Named Insured: WASHINGTON COUNTIES RISK POOL This endorsement is effective on the inception date of this Policy unless otherwise stated herein: Endorsement Effective Date: October 1, EXP Page 2 of 2

19 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. SEEPAGE AND/OR POLLUTION AND/OR CONTAMINATION EXCLUSION INCLUDING DEBRIS REMOVAL AND COST OF CLEAN UP EXTENSION and AUTHORITIES EXCLUSION and ASBESTOS MATERIAL REMOVAL LIMITATION SEEPAGE AND/OR POLLUTION AND/OR CONTAMINATION EXCLUSION Notwithstanding any provision in the Policy to which this Endorsement is attached, this Policy does not insure against loss, damage, costs or expenses in connection with any kind or description of seepage and/or pollution and/or contamination, direct or indirect, arising from any cause whatsoever. Nevertheless, if fire is not excluded from this Policy and a fire arises directly or indirectly from seepage and/or pollution and/or contamination, any loss or damage insured under this Policy arising directly from that fire shall (subject to the terms, conditions and limitations of the Policy) be covered. However, if the insured property is the subject of direct physical loss or damage for which underwriters have paid or agreed to pay, then this Policy (subject to its terms, conditions and limitations) insures against direct physical loss or damage to the property insured hereunder caused by resulting seepage and/or pollution and/or contamination. The Insured shall give notice to the underwriters of intent to claim NO LATER THAN TWELVE (12) MONTHS AFTER THE DATE OF THE ORIGINAL PHYSICAL LOSS OR DAMAGE. DEBRIS REMOVAL AND COST OF CLEAN UP EXTENSION Notwithstanding the provisions of the preceding Exclusion in this Endorsement or any provision respecting seepage and/or pollution and/or contamination, and or debris removal and/or clean up in the Policy to which this Endorsement is attached, in the event of direct physical loss or damage to the property insured hereunder, this Policy (subject otherwise to its terms, conditions and limitations, including but not limited to any applicable deductible) also insures within the sum insured: (a) (b) Expenses incurred in removal of debris of the property insured hereunder destroyed or damaged from the premises of the Insured; and/or Cost of clean up, at the premises of the Insured, made necessary as a result of such loss or damage. Provided that this Policy does not insure against the costs of decontamination or removal of water, soil or any other substance on or under such premises. SEEPAGE AND/OR POLLUTION AND/OR CONTAMINATION EXCLUSION: continued It is a condition precedent to recovery under this Extension that Underwriters shall have paid or agreed to pay for physical loss or damage to the property insured hereunder unless such payment is precluded solely by the operation of any deductible and that the Insured shall give notice to the Underwriters of intent to claim for cost of removal of debris or cost of clean up NO LATER THAN TWELVE (12) MONTHS AFTER THE DATE OF SUCH PHYSICAL LOSS OR DAMAGE. 02 EXP Page 1 of 2

20 AUTHORITIES EXCLUSION Notwithstanding any of the preceding provisions of this Endorsement or any provision of the Policy to which this Endorsement is attached, this Policy does not insure against loss, damage, costs, expenses, fines or penalties incurred or sustained by or imposed on the Insured at the order of any Government Agency, Court or other Authority arising from any cause whatsoever. Without restricting the generality of the foregoing, the Policy does not cover claims arising out of the following U.S. legislation or amendments thereto: (a) (b) (c) Resource Conservation and Recovery Act (R.C.R.A.) commonly known as Solid Waste Disposal Act. Comprehensive Environmental Response, Compensation and Liability Act (C.E.R.C.L.A.) commonly known as Superfund. Superfund Amendments and Reauthorization Act (S.A.R.A.) commonly known as Superfund Two. ASBESTOS MATERIAL REMOVAL LIMITATION This Policy does not insure loss, damage or expense to remove, or replace asbestos materials unless such materials are themselves damaged by an insured peril. Notwithstanding that competent Government Authority may declare all or parts of the insured premises unfit for occupancy without removal or modifications to asbestos materials, the Company s liability is limited to the proportion represented by the cost to repair the damaged part of the premises, not the entire property. Similarly, if the policy provides any coverage for business interruption, rental value or other loss of use or occupancy, such coverage shall be limited to the time necessary to repair or replace only the damaged portion(s) of the premises. Nothing in this Endorsement shall override any radioactive contamination exclusion clause in the Policy to which this Endorsement is attached. All other terms and conditions of this policy remain unchanged. Endorsement Number: 8 Policy Number: ESP Named Insured: WASHINGTON COUNTIES RISK POOL This endorsement is effective on the inception date of this Policy unless otherwise stated herein: Endorsement Effective Date: October 1, EXP Page 2 of 2

21 Item 1. Named Insured: EXCESS PHYSICAL DAMAGE SCHEDULE WASHINGTON COUNTIES RISK POOL 2. Address of insured As per schedule on file with company Premises: 3. Perils Covered: 4. Property Covered: Real Property including Improvements and Betterments, Business Personal Property, Vehicles, Equipment (Time Element coverages sublimited in the primary layer) 5. Primary Insurers and Lexington Insurance Company - $6,250, Policy Numbers: Policy Number: General Security Indemnity Company of Arizona - $2,500, Policy Number: T Chubb Group of Insurance Companies - $2,500, Policy Number: Star Insurance Company - $2,500, Policy Number: SLSTPTY ACE Westchester Specialty Group - $4,000, Policy Number: D Allied World Assurance Company, Ltd - $7,250, Policy Number: A 6. Primary Limits and Underlying Excess Limits: Limit: $6,250,000 Part of: $25,000,000 Limit: $2,500,000 Part of: $25,000,000 Limit: $2,500,000 Part of: $25,000,000 Limit: $2,500,000 Part of: $25,000,000 Limit: $4,000,000 Part of: $25,000,000 Limit: $7,250,000 Part of: $25,000, Limit Insured: 02 EXPS Page 1 of 2

22 Limit: $6,250,000 Part of: $25,000,000 Excess of: $25,000,000 Per Occurrence and in the Annual Aggregate separately as respects Earthquake and Flood 02 EXPS Page 2 of 2

23 1. INSURING CLAUSE: EXCESS PHYSICAL DAMAGE COVERAGE FORM Subject to the limitations, terms and conditions contained in this Policy or added hereto, the Company agrees to indemnify the Insured named in the schedule herein in respect of direct physical loss or damage to the property described in the schedule while located or contained as described in the schedule, occurring during the period stated in the schedule and caused by any of such perils as are set forth in Item 3 of the schedule, and which are also covered by and defined in the policy/ies specified in the schedule and issued by the Primary Insurer(s) stated therein. 2. LIMIT: Provided always that liability attaches to the Company only after the primary and underlying excess insurer(s) have paid or have admitted liability for the full amount of their respective ultimate net loss liability as set forth in Item 6 of the schedule and designated Primary and Underlying Excess Limit(s) and then the limits of the Company s liability shall be those set forth in Item 7 under the designation Limit Insured and the Company shall be liable to pay the ultimate net loss up to the full amount of such Limit Insured. 3. DEFINITIONS: (a) (b) Loss: The word loss shall mean a loss or series of losses arising out of one event or occurrence. Ultimate Net Loss: The words ultimate net loss shall mean the loss sustained by the Insured as a result of the happening of the perils covered by this Policy after making deductions for all salvages, recoveries and other valid and collectible insurance [other than recoveries under the policy/ies of the primary and underlying excess insurer(s)]. 4. APPLICATION OF RECOVERIES: All salvages, recoveries or payments recovered or received subsequent to a loss settlement under this Policy shall be applied as if recovered or received prior to such settlement and all necessary adjustments shall then be made between the Insured and the Company; provided always that nothing in this Policy shall be construed to mean that losses under this Policy are not recoverable until the Insured s ultimate net loss has been fully ascertained. 5. MAINTENANCE OF PRIMARY INSURANCE: In respect of the perils hereby insured against, this Policy is subject to the same warranties, terms and conditions (except as regards the premium, the amount and limits of liability other than the deductible or self-insurance provision where applicable, and the renewal agreement, if any; and EXCEPT AS OTHERWISE PROVIDED HEREIN) as are contained in or as may be added to the policy/ies of the primary insurer(s) prior to the happening of a loss for which claim is made hereunder, and should any alteration be made in the premium for the policy/ies of the primary insurer(s), then the premium hereon shall be adjusted accordingly. It is a condition of this Policy that the policy/ies and underlying excess insurer(s) shall be maintained in full effect during the currency of this Policy. 6. CANCELLATION: This insurance may be cancelled by the Insured at any time by written notice or by surrender of this policy. 02 EXP Page 1 of 2

24 This insurance may also be cancelled by or on behalf of the Company by delivering to the Insured or by mailing to the Insured, by registered, certified or other first class mail, at the Insured s address as shown on this insurance, written notice stating when, not less than 30 days (10 for non-payment of premium) thereafter, the cancellation shall be effective. The mailing of such notice as aforesaid shall be sufficient proof of notice and this insurance shall terminate at the date and hour specified in such notice. If this insurance shall be cancelled by the Insured, the Company shall retain the customary short rate proportion of the premium hereon except that if this insurance is on an adjustable basis, the Company shall receive the earned premium hereon or the customary short rate proportion of any minimum premium stipulated herein, whichever is the greater. If this insurance shall be cancelled by or on behalf of the Company, the Company shall retain the pro rata proportion of the premium hereon, except that if this insurance is on an adjustable basis, the Company shall receive the earned premium hereon or the pro rata proportion of any minimum stipulated therein, whichever is greater. Payment or tender of any unearned premium by the Company shall not be a condition precedent to the effectiveness of cancellation, but such payment shall be made as soon as practicable. If the period of limitation relating to the giving of notice is prohibited or made void by any law controlling the construction thereof, such period shall be deemed to be amended so as to be equal to the minimum period of limitation permitted by such law. 7. NOTIFICATION OF CLAIMS: The Insured, upon knowledge of any occurrence likely to give rise to a claim hereunder, shall give immediate written notice thereof to the person(s) or firm named for the purpose in the schedule. 8. POLLUTION EXCLUSION: This policy does not cover loss or damage caused by or resulting from release, discharge or dispersal of contaminants or pollutants or the cost of cleaning up polluting and contaminating substances. 02 EXP Page 2 of 2

25 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. DROP DOWN ENDORSEMENT (EARTHQUAKE AND/OR FLOOD, ONLY) In consideration of the premium charged, and subject to the terms, conditions and exclusions of the policy to which this endorsement is attached, it is agreed, as respects loss or damage caused by the perils of Earthquake and/or Flood, as otherwise defined in this policy, that: A. Exhaustion or Reduction of Underlying Aggregate Limits In the event of reduction or exhaustion of the aggregate limits of liability for Earthquake and/or Flood provided for by the underlying policy(ies) by reason of losses thereunder caused by Earthquake and/or Flood, this policy shall: 1. Pay excess of the reduced or exhausted underlying Earthquake and/or Flood aggregate limit and applicable deductible(s) contained in the primary policy(ies), but only to the extent that such loss or damage is insured both hereunder and in the underlying policy(ies) and in no event to exceed the limits of liability for Earthquake and/or Flood as provided in this policy. 2. Continue in force as underlying insurance for loss or damage caused by Earthquake and/or Flood as provided by the underlying policy, subject to applicable deductible(s) contained in the original primary policy(ies), but only to the extent that such loss is insured both hereunder and in the underlying policy(ies), and in no event to exceed the limit of liability provided by in this policy. B. Impairment of Underlying Insurance This endorsement shall not apply as underlying insurance due to the insolvency or declaration of impairment of the underlying insurer(s). C. Maintenance of Underlying Insurance It is a condition of this endorsement that the effective date and expiration date of the policy(ies) of the underlying insurer(s) shall be concurrent with this policy and said underlying policy(ies) shall be maintained in full effect during the currency of this policy, except for any reduction or exhaustion of the aggregate limits of liability for Earthquake and/or Flood contained therein, due solely to losses insured thereunder, caused by Earthquake and/or Flood and occurring during the currency of this policy. Nothing contained herein shall be held to vary, alter, waive or extend any of the terms, conditions or limitations of the policy to which this endorsement is attached other than as stated above. All other terms and conditions of this policy remain unchanged. Endorsement Number: 9 Policy Number: ESP Named Insured: WASHINGTON COUNTIES RISK POOL This endorsement is effective on the inception date of this Policy unless otherwise stated herein: Endorsement Effective Date: October 1, EXP Page 1 of 1

26 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. MANDATORY FORMS It is hereby understood and agreed that this policy is subject to the same conditions, limitations, and exclusions as stated in policy number issued by Lexington Insurance Company except for those conditions, limitations, and exclusions provided in the following forms: 06 EXP COMMERCIAL PROPERTY DECLARATIONS (ASIC) 00 ML SCHEDULE OF FORMS AND ENDORSEMENTS 06 ML SIGNATURE PAGE (ARCH SPECIALTY) 02 EXP MINIMUM EARNED PREMIUM CLAUSE - PERCENTAGE 00 EXP COMMON POLICY CONDITIONS 02 EXP CANCELLATION CLAUSE 00 ML SERVICE OF SUIT 06 CP CLAIMS HANDLING PROCEDURES (Arch Specialty Ins. Co.) 00 EXP TOTAL TERRORISM EXCLUSION 00 ML U.S. TREASURY DEPARTMENT'S OFFICE OF FOREIGN ASSETS CONTROL ("OFAC") 00 EXP OCCURRENCE LIMIT OF LIABILITY ENDORSEMENT 02 EXP EXCLUSION AND LIMITED ADDITIONAL COVERAGE FOR FUNGUS 02 EXP ELECTRONIC PROPERTY & VIRUS - EXCLUSION 02 EXP SEEPAGE/POLLUTION/CONTAMINATION EXCLUSION 02 EXPS EXCESS PHYSICAL DAMAGE SCHEDULE 02 EXP EXCESS PHYSICAL DAMAGE COVERAGE FORM 02 EXP DROP DOWN ENDORSEMENT (EARTHQUAKE AND/OR FLOOD, ONLY) POLICY CHANGES Issued By: Arch Specialty Insurance Co. Endorsement Number: 10 Policy Number: ESP Named Insured: WASHINGTON COUNTIES RISK POOL Endorsement Effective Date: October 1, 2013 President Page 1 of 1

27 LEXINGTON INSURANCE COMPANY Administrative Offices: 100 Summer Street, B oston, Massachusetts (hereinafter called the Company) MANUSCRIPT DOMESTIC PROPERTY POLICY DECLARATIONS Policy Number: Renewal of: Item 1. Named Insured: Address: WASHINGTON COUNTIES RISK POOL 2558 RW JOHNSON ROAD SW, SUITE 106 TUMWATER, WA Item 2. Item 3. Item 4. Item 5. Item 6. Policy Period: From: 10/01/2013 To: 10/01/2014 (At 12:01 A.M. Standard Time at the address of the Named Insured shown above.) Limit of Liability:$ Part of $ Excess of $ (Maximum Limit of Liability in any one Occurrence) Premium: Total Premium: $ Minimum Earned Premium: $ Perils: 6,250,000 Description of Property Covered: 474, ,206 25,000,000 ALL RISKS OF DIRECT PHYSICAL LOSS OR DAMAGE INCLUDING FLOOD,EARTH MOVEMENT AND EQUIPMENT BREAKDOWN/BOILER & MACHINERY REAL AND PERSONAL PROPERTY; MACHINERY AND EQUIPMENT; FURNITURE & FIXTURES; IMPROVEMENTS AND BETTERMENT'S; INVENTORY; STOCK; EDP HARDWARE, MEDIA AND DATA; BUSINESS INCOME-GROSS EARNING / EXTRA EXPENSE AS PER STATEMENT OF VALUES ON FILE WITH RISK SPECIALISTS COMPANIES INSURANCE AGENCY, INC., 520 PIKE STREET, SUITE 2700, SEATTLE, WA Coinsurance: Item 7. Mortgagee Clause: Loss, if any shall be payable to: Item 8. Forms Attached: See attached forms schedule PR8370 (04/13) Authorized Representative OR Countersignature (In states where applicable) Page 1 of 57

28 FORMS SCHEDULE Named Insured: WASHINGTON COUNTIES RISK POOL Policy No: Effective Date: 10/01/2013 Form Number Edition Date Endorsement Number Title PR8370 PR8371 PR4225 PR8346 PR8530 PR8543 PR /13 02/12 07/13 02/08 08/09 11/09 10/07 MANUSCRIPT DOMESTIC PROP DEC MANUSCRIPT DOMESTIC PROP TEXT ECONOMIC SANCTIONS ENDORSEMENT UPGRADE TO GREEN COMM'L ENDT MOLD / FUNGUS EXCLUSION EARTHQUAKE ZONE COUNTIES DEF TERRORISM PREM CHARGE W/EXCL TIER 1 COUNTIES ENDT LEASED RENTED HIRED EQPMENT NAMED INSURED SCHEDULE DESIGNATED CLAIM ADJUSTER ENDT AMENDATORY ENDT VEHICLE PHYSICAL DAMAGE COVERA HISTORICAL PROPERTIES ENDT EQUIPMENT BREAKDOWN SCHEDULE EXPEDITING ENDORSEMENT PARTICIPATION CLAUSE MORTGAGEES,LOSS PAYEES AND ADD PROPERTY EXTENSION NEWLY ACQUIRED PROP CAT LIMIT MARGIN CLAUSE REPORTING DOC018(Ed.12/87) LX0295 Page 2 of 57

29 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 or by calling (4/13) Page 3 of 57

30 LEXINGTON INSURANCE COMPANY ANY REFERENCE IN THE POLICY FORM TO CONTACT IN WRITING THE COMPANY S CLAIM OR LEGAL DEPARTMENTS SHOULD USE THE ADDRESS PROVIDED BELOW. Attn: Claims Department Chartis 101 Hudson Street 20 th Floor Jersey City, NJ Fax: Attn: Legal Department Lexington Insurance Company 100 Summer Street Boston, Massachusetts /2007 Page 4 of 57

31 $ LEXINGTON INSURANCE COMPANY (hereinafter, the "Company") ADMINISTRATIVE OFFICES: 100 Summer Street, B oston, Massachusetts MANUSCRIPT DOMESTIC PROPERTY POLICY SECTION I - COVERAGES AND LIMITS OF LIABILITY Terms which appear in boldface type have special meaning. See Section VIII. POLICY DEFINITIONS. A. NAMED INSURED: First Named Insured and/or its affiliated and subsidiary companies and/or corporations as now exist or may hereafter be constituted or acquired including their interests as may appear in partnerships or joint ventures which the Insured is legally obligated to insure. B. MORTGAGEES, LOSS PAYEES, AND ADDITIONAL INSUREDS: Per Certificates on File with the Company. C. COVERAGE TERRITORY: Coverage under this Policy applies to Occurrences within the United States, its territories and possessions, Puerto Rico, and Canada, including their respective coastal waters. D. LIMIT OF LIABILITY ("Policy Limit"): This Company's maximum liability in any one Occurrence as a result of all covered loss or damage regardless of the number of Locations, coverages, or perils insured under this Policy shall not exceed: 25,000,000 E. SUBLIMITS OF LIABILITY: Sublimits of Liability stated below are subject to and not in addition to the Policy Limit shown in Paragraph D., above. These Sublimits of Liability and the specified limits of liability contained in the forms, endorsements and extensions attached, if any, are per Occurrence unless otherwise indicated. If the words, NOT COVERED are shown, instead of a limit, sublimit amount or number of days, or if a specified amount or number of days is not shown corresponding to any coverage or Covered Cause of Loss, then no coverage is provided for that coverage or Covered Cause of Loss. 1. Earth Movement: a. $ Annual Aggregate Subject to the Annual Aggregate Limit for all Earth Movement shown in Subparagraph E.1.a. above: b. $ Annual Aggregate for all Earth Movement in all of the following states combined: California, Alaska, Hawaii, and Puerto Rico c. $ Annual Aggregate for Pacific Northwest Earthquake Zone Counties (See Section VIII-Policy Definitions, Subparagraph E.1.) d. $ Annual Aggregate for New Madrid Earthquake Zone Counties (See Section VIII - Policy Definitions, Subparagraph E.2.) 2. Flood: 25,000,000 10,000,000 25,000,000 25,000,000 25,000,000 25,000,000 a. $ Annual Aggregate b. $ Subject to the Annual Aggregate Limit for all Flood shown in Subparagraph E.2.a. above, the Annual Aggregate as respects Flood for Locations wholly or partially within Special Flood Hazard Areas (SFHA), areas of 100-year flooding as defined by the Federal Emergency Management Agency (FEMA). 10,000, Named Storm: $ Regardless of the number of Coverages, Locations or Perils involved including, but not limited to, all Flood (however caused), wind, wind gusts, storm surges, PR8371 (02/12) Page 1 of 26 Page 5 of 57

32 4. Debris Removal: The Company's total liability for Debris Removal per Occurrence for all Insured Locations sustaining covered direct physical loss or damage payable under this Policy shall not exceed the lesser of: a. 25% of the amount of covered direct physical loss or damage payable for all Insured Locations; or b. $ 25,000, Accounts Receivable: $ 6. Civil or Military Authority: Days, but in no event will the Company pay more than $ NOT COVERED 7. Contingent Time Element: $ 8. Demolition & Increased Cost of Construction: (See Section VI - Additional Coverages, Paragraph C.) a. Demolition Coverage A: Policy Limit b. Demolition Coverage B: $ c. Demolition Coverage C: $ 9. Electronic Data and Media: $ 10. Equipment Breakdown: $ 11. Spoilage: $ 12. Errors and Omissions: $, Subject to all other sublimits contained herein. 13. Extended Period of Indemnity: Days 14. Extra Expense: $ 15. Fine Arts: $ 16. Fire Brigade Charges: $ 17. Ingress/Egress Coverage: Days, but in no event will the Company pay more than $ 18. Leasehold Interest: $ 19. Limited Pollution Coverage: $ Annual Aggregate 20. Miscellaneous Unnamed Locations: $, Subject to all other sublimits contained herein. 21. Newly Acquired Property: Days, but in no event will the Company pay more than $ 2,500,000, Subject to all other sublimits contained herein. 22. Ordinary Payroll: Days tornados, cyclones, hail, or rain, the maximum amount the Company will pay per Occurrence as respects all covered Loss or Damage arising out of a Named Storm (a storm that has been declared by the National Weather Service to be a Hurricane, Typhoon, Tropical Cyclone, Tropical Storm, or Tropical Depression). In the event covered Loss or Damage by Flood arises out of a Named Storm, the maximum amount the Company will pay per Occurrence for all such Loss or Damage by Flood shall be the Sublimits of Liability for Flood as shown in Subparagraphs E.2.a. and E.2.b. above. However, if Flood is not covered, the maximum amount the Company will pay per Occurrence for all such Loss or Damage by Named Storm shall exclude Loss or Damage by Flood. 5,000, , ,000,000 NOT COVERED 5,000, ,000,000 1,000, ,000,000 1,000,000 2,500, PR8371 (02/12) Page 2 of 26 Page 6 of 57