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PERSONAL UMBRELLA POLICY - AvivaPartner.ca

PERSONAL UMBRELLA POLICY Your Personal Umbrella Policy is written in plain language so that "you" may fully understand the protection "you" have purchased.

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Text of PERSONAL UMBRELLA POLICY - AvivaPartner.ca

PERSONAL UMBRELLA POLICY Your Personal Umbrella Policy is written in plain language so that "you" may fully understand the protection "you" have purchased. The policy consists of this booklet, the Declarations Page which contains information that is unique to "your" insurance program and other forms that may need to be attached to complete "your" Personal Umbrella coverage. Together these comprise the legal contract of indemnity that exists between "you" and <................>. Personal Injury or Property Damage Coverage "We" agree, subject to all the conditions, exclusions, definitions and other terms of this policy, to pay on "your" behalf the "Ultimate Net Loss" in excess of the applicable underlying policies or the "Self-Insured Retention" shown on the Declarations Page which "you" shall become legally obligated to pay as compensatory damages because of "personal injury" or "property damage" caused by an "occurrence". The "occurrence" may take place anywhere. Automobile Coverage a. The provision of automobile insurance under this policy is confined solely to that provided by, and shall be subject to all the terms and conditions of the Excess Automobile Policy. This insurance does not provide coverage for any liability arising out of the ownership, use or operation of an "automobile" except to the extent that coverage is provided by the Standard Excess Automobile Policy ( No. 7/ No. 7) if attached hereto. b. The Family Protection Coverage is in effect only if a primary Family Protection Endorsement / Underinsured Motorist Protection - limit is listed in the Schedule of Underlying Liability Insurance. "We" agree to pay all sums which "you" or "your" legal representative shall be legally entitled to recover as damages from the owner or operator of an uninsured or underinsured Automobile, provided coverage hereunder for loss involving such uninsured or underinsured Automobile shall apply in accordance with the terms and conditions of the primary Family Protection/ Underinsured Motorist Protection Insurance provided by the endorsement to the underlying policy listed in the Schedule of Underlying Liability Insurance. Defence, Settlement and Supplementary Payments With reference to any "occurrence" not covered by the underlying policy or policies of insurance described on the Declarations Page or any other underlying insurance collectible by "you", but covered by the conditions, definitions, exclusions and other terms of this policy, "we" will, in addition to the amount of the "Ultimate Net Loss" payable: a. defend any suit against "you" seeking damages on account of "personal injury" or "property damage" even if such a suit is groundless, false or fraudulent, and may make such investigation, negotiation and settlement of any claim or suit as "we" deem expedient; "we" also have a duty to defend any "occurrence" if the applicable limit of underlying insurance is exhausted; b. pay premiums on bonds to release attachments in any such suit for an amount not in excess of the applicable limit of liability on this policy, pay premiums on appeal bonds required in any such defended suit but without any obligations to apply for or furnish any such bonds; c. pay all expenses incurred by "us", all costs taxed against "you" in any such suit defended by "us" and all interest on the entire amount of any judgement therein which accrues after entry of judgement and before "we" have paid or tendered or deposited in court that part of the judgement which does not exceed the limit of our liability therein; d. pay all reasonable expenses incurred by "you" at our request to assist "us" in the investigation or defence of a claim or "action" including actual loss of earnings for up to $ a day because of time off from work. In jurisdictions where "we" may be prevented by law or otherwise from carrying out this agreement, "we" shall pay any expense incurred with our written consent in accordance with this agreement. "You" shall promptly reimburse "us" for any amount of "Ultimate Net Loss" paid on "your" behalf within the "Self-Insured Retention" specified under the Limit of Liability section of this policy. Limit of Liability "We" shall only be liable for the "Ultimate Net Loss" being in excess of: a. the limits of the underlying liability insurance as set out in the Declarations Page and the amount recoverable under any other underlying liability insurance valid and collectible by "you" in respect of each "occurrence" covered by said underlying liability insurance; or b. the Aggregate Limit is the most "we" will pay for the sum of all compensatory damages: i. arising out of the "Products - Completed Operations Hazard", or ii. arising out of any coverage contained in an underlying insurance listed in the Declarations if such coverage is subject in such underlying insurance to an aggregate limit of liability for all insured damages, the aggregate limit under this policy applying separately to each such underlying insurance coverage. In the event of reduction or exhaustion of the aggregate limits of liability under said underlying insurance by reason of losses paid thereunder, this policy is subject to all the terms, conditions and definitions hereof shall: i. in the event of reduction pay the excess of the reduced underlying limit, ii. in the event of exhaustion continue in force as underlying insurance. The Aggregate Limit applies separately to each consecutive annual period and to any remaining period of less than 12 months, starting with the beginning of the policy period shown on the "Declaration Page" unless the policy period is extended after issuance for an additional period of less than 12 months. In that case, the additional period will be deemed part of the last preceding period for purposes of determining the Limit of Insurance. c. the "Self-Insured Retention" as set out in the Declarations Page in respect to each "occurrence" not be covered by any underlying policy; or d. the "Self-Insured Retention" of $250,000 if the loss arises from the operation, use or ownership of any personal use private passenger automobile outside Canada and the United States of America. Regardless of the number of persons insured by this policy, or by the number of persons who bring claims or commence "actions" against "you" the limit of liability shall not exceed the amount stated in Declarations Page arising out of any one "occurrence". Automatic Coverage for Additional Exposures If "you" acquire any additional residence premises, rental properties, automobiles, "recreational vehicles", or watercraft during the term of this policy, "we" will extend the coverage to include these additional exposures, as of the date of acquisition on the condition that underlying insurance with minimum limits of liability of $1,000,000 is in force. If "you" do not advise "us" of any additional exposures prior to the next policy expiry date, this automatic coverage will cease on that date even if the policy is renewed. Exclusions This policy shall not apply to claims made against "you" for "personal injury" or "property damage" arising from: a. any claims made against "you" by any person insured by this policy; b. the violation of any law or ordinance by "you" or with "your" knowledge or by any other person insured by this policy; c. discrimination due to age, marital status, race, colour, sex, creed, national origin, or any other discrimination; d. any "business" pursuits or "business property" (other than farms); e. the ownership, maintenance, operation, use, loading or unloading of any "recreational vehicle" or watercraft unless covered by the underlying insurance listed on the Declarations Page or insured elsewhere under the Automatic Coverage for Additional Exposure option and then not for broader coverage than provided by the underlying insurance; f. any "property damage" to: i. property "you" own, ii. property "you" agree to insure, iii. property "you" rent, lease, use, occupy or have in "your" care, custody or control, or upon which any action is performed for "you": g. i. any "property damage" to aircraft rented to or used by "you" or in "your" care, custody or control, ii. any damages arising out of the ownership, maintenance, operation or use of any aircraft, airport, or landing strip, or to the loading or unloading of any aircraft; h. any act expected or intended from "your" standpoint. This exclusion does not apply to "personal injury" resulting from the use of reasonable force to protect persons or property; i. the rendering of or failure to render any professional services by "you" or by any person for whose acts or commissions "you" are legally responsible; j. any liability imposed upon or assumed by "you" under any Worker's Compensation Statute, unemployment compensation, disability benefits law or similar laws; k. any act or omission by any person insured by this policy as an officer or member of the Board of Directors of any corporation or other organization. This exclusion shall not apply to members of any non-profit organizations or corporations (excepting Condominium corporations or associations); l. any fines, penalties, punitive or exemplary damages; m. "occurrences" for which coverage by an underlying policy (whether scheduled or not) has been denied due to a violation of conditions in such a policy; n. any actual, threatened or proposed act of sexual harassment, sexual misconduct, sexual molestation, physical abuse, or mental abuse by any person. This exclusion also applies to any failure to take all reasonable and proper steps to guard against the possibility of any of the foregoing; o. any transmission of communicable disease. This exclusion also applies to any failure to take all reasonable and proper steps to guard against the possibility of the foregoing; p. 1. Liability imposed by or arising under the Nuclear Liability Act; 2. "Personal injury" or "property damage" with respect to which "you" under this policy are insured under a contract of nuclear energy liability insurance (whether the "Insured" is unnamed in such contract and whether or not it is legally enforceable by the "Insured") issued by the Nuclear Insurance Association of Canada or any other Insurer or group or pool of Insurers or would be an "Insured" under any such policy but for its termination upon exhaustion of its limit of liability; 3. "Personal injury" or "property damage" resulting directly or indirectly from the "nuclear energy hazard" arising from: i. the ownership, maintenance, operation or use of a "nuclear facility" by or on behalf of an "Insured", ii. the furnishing by an "Insured" of service materials, parts or equipment in connection with the planning, construction, maintenance, operation or use of a "nuclear facility", iii. the possession, consumption, use, handling, disposal or transportation of "fissionable substances" or of other "radioactive material" (except radioactive isotopes, away from a "nuclear facility", which have reached the final stage of fabrication so as to be usable for any scientific, medical, agricultural, commercial, or industrial purpose) used, distributed, handled, or sold by an "Insured". As used in this form: 1. The term "nuclear energy hazard" means the radioactive, toxic, explosive, or other hazardous properties of "radioactive material"; 2. The term "radioactive material" means uranium, thorium, plutonium, neptunium, their respective derivatives, and compounds, radioactive isotopes of other elements and any other substances that the Atomic Energy Control Board may, by regulation, designate as being prescribed substances capable of releasing atomic energy, or as being requisite for the production, use or application of atomic energy; 3. The term "nuclear facility" means: i. any apparatus designed or used to sustain nuclear fission in a self-supporting chain reaction or to contain a critical mass of plutonium, thorium and uranium or any one or more of them, ii. any equipment or device designed or used for: a. separating the isotopes of plutonium, thorium and uranium or any one or more of them, b. processing or utilizing spent fuel, or c. handling, processing or packaging waste, iii. any equipment or device used for the processing, fabricating or alloying of plutonium, thorium or uranium enriched in the isotope uranium 233 or in the isotope uranium 235, or any one or more of them if at any time the total amount of such material in the custody of the "Insured" at the premises where such equipment or device is located consists of or contains more than 25 grams of plutonium or uranium 233 or any combination thereof, or more than 250 grams of uranium 235, iv. any structure, basin, excavation, premises or place prepared or used for the storage or disposal of waste "radioactive material". And includes the site on which any of the foregoing is located, together with all operations conducted thereon and all premises used for such operations. 4. The term "fissionable substance" means any prescribed sub-stance that is, or from which can be obtained, a Substance capable of releasing atomic energy by nuclear fission. q. war, invasion, act of foreign enemy declared or undeclared hostilities, civil war, rebellion, revolution, insurrection, or military power; r. 1. The actual, alleged, potential or threatened spill, discharge, emission, dispersal, seepage, leakage, migration, release or escape of "pollutants": i. at or from any premises, site or location which is or was at any time, owned or occupied by or rented or loaned to "you", ii. at or from any premises, site or location which is or was at any time, used by or for "you" or others for the handling, storage, disposal, processing, or treatment of waste, iii. which are or were at any time transported, handled, stored, treated, disposed of, or processed as waste by or for "you" or any person or organization for whom "you" may be legally responsible, or iv. at or from any premises, site or location on which "you" or any contractors or sub-contractors working directly or indirectly on "your" behalf are performing operations: a. if the "pollutants" are brought on or to the premises, site or location in connection with such operations by "you" or any contractor or sub-contractor; or b. if the operations are to test for, monitor, clean up, remove, contain, treat, detoxify, decontaminate, stabilize, remediate or neutralize, or in any way respond to, or assess the effect of "pollutants". Sub-paragraphs i. and iv. a. of this exclusion do not apply to "personal injury" or" property damage" caused by heat, smoke, or fumes from a fire which becomes uncontrollable or breaks out from where it was intended to be. 2. any loss, cost or expense arising out of any request, demand or order that "you" or others test for, monitor, clean up, remove, contain, treat, detoxify, decontaminate, stabilize, remediate or neutralize, or in any way respond to, or assess the effects of "pollutants" unless such loss cost or expense is consequent upon personal injury" or "property damage" covered by this policy. Definitions "Action" means a civil proceeding in which compensatory damages because of "personal injury" or "property damage" to which this insurance applies are alleged. "Action" includes an arbitration proceeding alleging such damages to which "you" must submit or submit with our consent. "Business" means any continuous or regular pursuit undertaken for financial gain including a trade, profession, occupation (excluding farming), commercial enterprise, or other enterprises in which "you" have a financial interest. "Business Property" means property on which a "business" is conducted, property rented in whole or in part to others, or held for rental. "Farming" means ownership, maintenance or use of premises for the production of crops or the raising or care of livestock, including all necessary operations. Farming also includes the operation of roadside stands and farm markets maintained principally for the sale of the "Insured's" farm products. "Occurrence" means an accident, including continuous or repeated exposure to substantially the same general harmful conditions, which result during the policy period in "personal injury" or "property damage". "Personal Injury" means: a. bodily injury, mental injury, mental anguish, shock, sickness, disease, disability, including death resulting therefrom; b. false arrest, detention or imprisonment; c. malicious prosecution: d. wrongful entry into, or eviction of a person from, a room, dwelling or premises that the person occupies; e. oral or written publication of material that slanders or libels a person or organization or disparages a person's or organization's goods, products or services; f. oral or written publication of material that violates a person's right of privacy. "Pollutants" means any solid, liquid gaseous or thermal irritant or, contaminant, including smoke, odour, vapour, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned or reclaimed. "Products-completed operations hazard" includes all "personal injury" and "property damage" occurring away from premises "you" own or rent and arising, out of "your product" or "your work" except: a. products that are still in "your" physical possession: or b. work that has not yet been completed or abandoned. "Your work" will be deemed completed at the earliest of the following times: a. when all of the work called for in "your" contract has been completed; b. when all of the work to be done at the site has been completed if "your" contract calls for work at more than one site; c. when that part of work done at a job site has been put to its intended use by any person or organization other than another contractor or sub-contractor working on the same project. Work that may need service, maintenance, correction, repair or replacement, but which is otherwise complete, will be treated as completed. This hazard does not include "personal injury" or "property damage" arising out of the existence of tools, uninstalled equipment, or abandoned or unused materials. "Property Damage" means physical damage to or destruction of or the resultant loss of use of tangible property. "Recreational Vehicle" means a land motor vehicle, amphibious vehicle, or air-cushioned vehicle not subject to motor vehicle registration laws for public road use and which is designed for recreational use off public roads. "Residence employee" means "your" employee whose duties are exclusively in connection with the maintenance or use of the residence premises, including the performance of household or domestic services, or who performs elsewhere duties of a similar nature not in connection with any "Insured's" "business" pursuits. "Residence employee" also includes any person engaged in farm related work on "your behalf in a neighbourly exchange of assistance for which "you" are not obligated to pay any money. "Self-Insured Retention" means, for each "occurrence", the dollar amount on the Declarations Page if there is no underlying insurance. "Ultimate Net Loss" means the total of all sums "you" are legally responsible to pay as damages, whether resulting from a decision by a court of Law or by a compromise with our consent, less all collectible recoveries or salvage. The following are not included in this definition: a. the cost to investigate or settle any claim, including legal fees court costs and interest on any judgement or award; b. any office expenses; c. all salaries of employees. "Underlying Limit" means the required minimum insurance coverage shown on the Declarations Page. It also includes any general or replacement policies or new policies for new acquisitions providing the required minimum is maintained. "We" or "Us" mean the company providing this insurance. "You" or "Your" or "Insured" or "Named Insured" means the person(s) named in the Declarations and, while living in the same household, his or her husband or wife, the relatives of either or any person under 21 in their care. Husband and wife includes a man and a woman who are living to either continuously for a period of 3 years or, if a child was born of their union, for a period of 1 year. Only the person(s) named in the Declarations may take action against "us". In addition, if coverage is provided by the underlying insurance listed on the Declarations Page the following persons are insured: a. any person or organization legally liable for damages caused by a watercraft or animal owned by "you", and to which this insurance applies. This does not include anyone using or having custody of the watercraft or animal in the course of any "business" or without the owner's permission; b. a "residence employee" while performing duties in connection with the ownership, use or operation of motorized vehicles and trailers for which coverage is provided in this form; c. "your" legal representative having temporary custody of the insured premises, if "you" die while insured by this form, for legal liability arising out of the insured premises; d. any person who is insured by this form at the time of "your" death and who continues residing on the insured premises; e. a student who is enrolled in and actually attends a school, college or university and is dependent on "you" for support and maintenance is also insured even if temporarily residing away from the principal residence. "Your product" means: a. any goods or products, other than real property, manufactured, sold, handled, distributed, or disposed of by: i. "you"; ii. others trading under "your" name; or iii. a person or organization whose business or assets "you" have acquired; and b. containers (other than vehicles), materials, parts or equipment furnished in connection with such goods or products. "Your product" includes warranties or representations made at any time with respect to the fitness, quality, durability, or performance of the items included in a. and b. above. "Your product" does not include vending machines or other property rented to or located for the use of others but not sold. "Your work" means: a. work or operations performed by "you" or on "your" behalf, and b. materials, parts or equipment furnished in connection with such work or operations. "Your work" includes warranties or representations made at any time with respect to the fitness, quality, durability, or performance of any of the items included in a. or b. above. Conditions 1. Notice of Accident or Occurrence. When an accident or occurrence first takes place and it appears that it is reasonably likely to involve "us", written notice must be sent to "us" promptly. This notice must include: a. "your" name and policy number; b. the time, place and circumstances of the accident; c. the names and addresses of witnesses and potential claimants. 2. Co-Operation. Except for "occurrences" not covered by "your" underlying policies, "we" shall not be called upon to assume charge of the settlement or defence of any claim made or lawsuit brought or instituted against "You", but "we" have the right and must be given the opportunity to associate with "you" in the defence and control of any claim, lawsuit or proceeding likely to involve "us". "You" are required to: a. help "us" obtain witnesses, information and evidence about the accident or "occurrence" and cooperate with "us" in any "action" if "we" ask "you"; b. immediately send "us" copies of everything received in writing concerning the accident or "occurrence" including legal documents. 3. Appeals. In the event "you" and the underlying Insurer elect not to appeal a judgement in excess of the underlying insurance. "We" may elect to make such an appeal at our cost and expense, and shall be liable for the taxable costs and disbursements and interest incidental thereto, but in no event shall our liability for "Ultimate Net Loss" exceed the limit specified under Limit of Liability on the Declarations Page for any one "occurrence". 4. Action Against Us. No action shall lie against "us" unless, as a condition precedent thereto, "you" have fully complied with all the terms of this policy, nor until the amount or "Your" obligation to pay has been fully determined either by judgement against "you" after an actual trial or by written agreement between "you", the claimant and "us". Any person or organization, or the legal representative thereof, who has secured such judgement or written agreement shall thereafter be entitled to recover under this policy to the extent of the insurance afforded by this policy. Nothing contained in this policy shall give any person or organization any right to join "us" as a codefendant in any action against "you" to determine "your" liability. 5. Bankruptcy or Insolvency. "Your" bankruptcy or insolvency or that of "your" estate shall not relieve "us" of any of "your" obligations hereunder. 6. Canadian Currency Clause. All limits of liability, premiums and other amounts expressed in this policy are in Canadian currency. 7. Other Insurance. If other collectible insurance with any other Insurer is available to "you" covering a loss also covered by this policy (except insurance specifically purchased and rated to be in excess of this policy), the insurance provided by this policy shall be in excess of and not contribute with such other insurance. 8. Subrogation. "We" shall be subrogated to the extent of any `payment hereunder to all "your" rights of recovery therefore, and "you" shall do everything necessary to secure such rights. "You" shall do nothing after a loss to prejudice such rights. 9. Changes. Notice to or knowledge of any Broker, Agent or other person shall not effect a waiver or change any part of this policy nor stop "us" from asserting any right under it. The terms of this policy cannot be waived or changed except by an endorsement issued by "us". 10. Assignments. Assignment of interest under this policy shall not bind "us" unless and until our consent is endorsed hereon. However, if "you" should die, such insurance as is afforded hereunder shall apply (1) to "your" legal representative but only while acting within the scope of his or her duties as such and (2) with respect to "your" property, to the person having proper temporary custody thereof as Insured, but only until the appointment and qualification of the legal representative. 11. Maintenance of Underlying Insurance. Each policy referred to in the Underlying Insurance on the Declarations Page, including any renewal or replacement thereof shall be maintained without alteration of terms or conditions in full effect during the term of this policy. Failure by "you" to comply with the foregoing shall not invalidate this policy, but in the event of such failure "we" shall only be liable to the same extent as "we" would have been had "you" maintained the underlying insurance. 12. Cancellation. This policy may be cancelled by "you" at any time upon request by surrender of the policy to "us" or to any of our authorized brokers, or by mailing to "us" written notice stating when such cancellation shall be effective. This policy may be cancelled by "us" by giving to "you" at the address shown on this policy fifteen (15) days' notice of cancellation by registered mail, or five (5) days' written notice of cancellation personally delivered. Proof of mailing will be sufficient proof of notice. If "you" cancel, earned premium shall be computed in accordance with the customary short rate table and procedure. If "we" cancel, earned premium shall be computed pro rata. Premium adjustment may be made at the time cancellation is effected or as soon as practicable thereafter. Our refund cheque will be mailed to you at your last known mailing address. 13. Severability of Interests. The words "you" and "your" in this policy refer to each of the persons insured by this policy severally and not collectively. However, the inclusion in this policy of more than one person insured shall not operate to increase our limits of liability. 14. Liberalization. If a broadening of coverage without any additional premium charge occurs during the policy period or within forty-five (45) days' prior to "your" policy effective date, "you" will automatically benefit from the improved coverage. 15. Conformity with Provincial Statutes. Any provision of this policy which, on its effective date, is in conflict with the statutes of the province in which "you" maintain "your" principal residence on such date is hereby amended to conform to the requirements of such statutes. 16. Prior Insurance and Non-Cumulation of Liability. If any loss covered hereunder is also covered in whole or in part under any other excess policy issued to "you" prior to the inception date hereof, the limit of liability shown on the "Declaration Page" shall be excess of any amounts due to "you" on account of such loss under such prior insurance. Excess Automobile Policy - SPF No. 7/OPCF No. 7 Attached to and forming part of this personal umbrella liability policy. WHEREAS an application has been made by the applicant (hereinafter called the "Insured") to the Excess Insurer for a contract of excess automobile insurance and the said application forms part of this contract and is as follows: Application Item 1. "Named Insured", occupation and address, is as set out in the policy declarations. Item 2. Policy period is as set out in the policy declarations. Item 3. The "Insured" is warned that by statute this excess contract automatically terminates concurrently with the termination of any policy as set out in the policy declarations. Item 4. This application is for excess insurance against legal liability for bodily injury or death or damage to property of others upon the terms and conditions of the Excess Insurer's standard policy form for excess insurance and for the specified limits as set out in the Umbrella Liability Declaration. Item 5. a. Description of first loss motor vehicle liability insurance; b. Description of underlying excess insurance(s) if any as per the Umbrella Liability Declarations. Item 6. Premium $ included. Item 7. Claims must be reported to the agent or the Insurer. Refer to special provisions 7 and 9 of this policy. NOW, THEREFORE, IN CONSIDERATION of the payment of the premium specified and of the statements contained in the application and subject to the limits, special provisions and conditions herein stated and subject, insofar as applicable, to the terms, conditions, general provisions, definitions and exclusions set forth in the first loss policy described in the Umbrella Policy Declaration, which said terms, conditions, general provisions, definitions and exclusions are by reference incorporated herein, the Excess Insurer agrees to indemnify the "Insured" under the first loss motor vehicle liability insurance against liability imposed by law upon the "Insured" for an amount or amounts in excess of the limit(s) of the first loss insurance and the underlying excess insurance for loss or damage arising from the ownership, use, or operation of the automobile(s) covered under such first loss insurance and the underlying excess insurance resulting from Bodily Injury to or Death of any Person or Damage to Property. Special Provisions 1. The Excess Insurer's "Ultimate Net Loss" liability shall not exceed the limit stated in the Umbrella Liability Declaration in excess of the limit(s) of the first loss policy, and the underlying excess policy(ies) stated in the Schedule of Underlying Insurance Policies thereof, or such amount as the First loss Insurer and the underlying Excess Insurer shall be liable to pay under statute, whichever is the greater. The words "Ultimate Net Loss" used in this policy mean the amount payable in settlement of the liability of the "Insured" after making deductions for all recoveries and for other valid and collectible insurances excepting the first loss and underlying policy(ies) and shall exclude all expenses and costs. 2. The word "costs" used in this policy means interest accruing after entry of judgement upon that part of the judgement which is within the limit of the Excess Insurer's liability, investigation, adjustment and legal expenses, excluding, however, all office expenses of the "Insured", all expenses of salaried employees of the "Insured" and general retainer fees for counsel normally paid by the "Insured". 3. The Excess Insurer agrees to pay costs incurred by or on behalf of the "Insured" where these costs are not covered by the first loss or underlying excess policy(ies), on the following basis: a. should any claim or claims become adjustable prior to the commence-ment of trial for not more than the first loss and underlying excess policy limit(s) then no costs shall be payable by the Excess Insurer. b. should, however, the amount for which said claim or claims may be so adjustable exceed the first loss and underlying excess policy(ies) limit(s), then the Excess Insurer shall contribute to the costs incurred on behalf of the "Insured" in the ratio that the Excess Insurer's proportion of the "Ultimate Net Loss" as finally adjusted bears to the whole amount of such "Ultimate Net Loss"; c. in the event that the "Insured" or the Insurer under the first loss policy elects not to appeal a judgement in excess of the limit(s) of the first loss and underlying excess policy(ies), the Excess Insurer may elect to conduct such appeal and shall be liable for the taxable costs and interest incidental thereto; but in no event shall the total liability of the Excess Insurer exceed the limit of liability stated in the Umbrella Liability Declaration, plus the expense of such appeal. 4. All 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 Excess Insurer, provided always that nothing in this policy shall be construed to mean that losses under this policy are not payable until the "Insured's" "Ultimate Net Loss" has finally been ascertained. 5. Liability to pay under this policy shall not attach unless and until the first loss and underlying Excess Insurer(s) shall have admitted liability for the first loss and underlying excess limit(s) or unless and until the "Insured" has by final judgement been adjudged to pay an amount which exceeds such first loss and underlying excess limit(s) and then only after the first loss and underlying Excess Insurer(s) has/have paid or has/have been held liable to pay the full amount of the first loss and underlying excess limit(s). 6. Neither the inclusion of more than one entity in the name of the "Insured" nor the addition of any additional Insureds under this policy shall in any way operate to increase the limit of liability set forth in the Umbrella Liability Declarations. 7. Notwithstanding Statutory Condition 3(1) contained in the first loss policy, the "Insured" is only required to give the Excess Insurer notice of any accident if the claim or claims possibly arising therefrom appear likely to exceed the first loss insurance, in which case immediate written notice thereof must be given to the person or firm as set out in Item 7 of the application. 8. a. This Policy may be terminated: i. by the Excess Insurer giving to the "Insured" fifteen (15) days' notice of termination by registered mail, or five (5) days' written notice of termination personally delivered; or ii. by the "Insured" at any time on request. b. Where this policy is terminated by the Excess Insurer: i. the Excess Insurer shall refund the excess of premium actually paid by the "Insured" over the pro rata premium for the expired time, but in no event shall the pro rata premium for the expired time be deemed to be less than any minimum retained premium specified; and ii. the refund shall accompany the notice unless the premium is subject to adjustment or determination as to amount, in which case the refund shall be made as soon as practicable. c. Where this policy is terminated by the "Insured", the Excess Insurer shall refund as soon as practicable the excess of premium actually paid by the "Insured" over the short rate premium for the expired time, but in no event shall the short rate premium for the expired time be deemed to be less than any minimum retained premium specified. d. The refund may be made by money, postal or express company money order, or by cheque payable at par. e. The fifteen (15) days as set out in clause i. of sub-condition a. of this condition commences to run on the day following the receipt of the registered letter at the post office to which it is addressed. f. Nothing in this special provision shall in any way affect the operation of the statutory provision in The Insurance Act providing that where the contract terminates or is terminated, the excess contract is automatically terminated. In the event that this policy is auto-matically terminated, the Excess Insurer agrees to refund the excess of premium actually paid over the pro rata premium for the expired term (subject to any minimum retained premium specified) as soon as practicable, but if there is any pro rata premium unpaid, the "Insured" agrees to pay this. 9. Any written notice to the Excess Insurer may be delivered at, or sent by registered mail to the chief agency or head office of the Excess Insurer in this province. Written notice may be given to the "Insured" named in this policy by letter personally delivered to him or by registered mail addressed to him at his latest post office address notified to the Excess Insurer. In this condition the expression "registered" means registered in or outside Canada. 03/03

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