AA 101 03 06

c. If there is “loss” to a covered “auto”
or its equipment you must also do
the following:

(1) Promptly notify the police if the
covered “auto” or any of its
equipmentis stolen.

(2) Take all reasonable steps to
protect the covered “auto” from
further damage. Also keep a re-
cord of your expenses for con-
sideration in the settlement of
the claim.

(3) Permit us to inspect the covered
“auto” and records proving the
“loss” before its repair or dispo-
sition.

(4) Agree to examinations under
oath at our request and give us
a signed statement of your an-
swers.

Legal Action Against Us

No one may bring a legal action against
us under this Coverage Form until:

a. There has been full compliance with
all the terms of this Coverage Form;
and

b. Under Liability Coverage, we agree
in writing that the “insured” has an
obligation to pay or until the amount
of that obligation has finally been
determined by judgment after trial.
No one has the right under this pol-
icy to bring us into an action to de-
termine the “insured's” liability.

Loss Payment - Physical Damage
Coverages

Atour option we may:

a. Pay for, repair or replace damaged
or stolen property;

b. Return the stolen property, at our
expense. We will pay for any dam-
age that results to the “auto” from the
theft; or

c. Take all or any part of the damaged
or stolen property at an agreed or
appraised value.

If we pay for the "loss", our payment will
include the applicable sales tax for the
damaged or stolen property.

Transfer of Rights of Recovery Against
Others to Us

If any person or organization to or for
whom we make payment under this Cov-

——————€ase:-4:42-ev-00331 Document #: 1-1 Filed: 01/17/12 Page 20 of 65 PagelD #:24

erage Form has rights to recover dam-
ages from another, those rights are
transferred to us. That person or organi-
zation must do everything necessary to
secure our rights and must do nothing
after “accident” or “loss* to impair them.

B. General Conditions

1.

Bankruptcy

Bankruptcy or insolvency of the “insured”
or the “insured's” estate will not relieve us
of any obligations under this Coverage
Form.

Concealment, Misrepresentation or

Fraud

This Coverage Form is void in any case
of fraud by you at any time as it relates to
this Coverage Form. It is also void if you
or any other “insured”, at any time, inten-
tionally conceal or misrepresent a mate-
rial fact concerning:

a. This Coverage Form;
b. The covered “auto”;

c. Your interest in the covered “auto”;
or

d. Aclaim under this Coverage Form.
Liberalization

If within 60 days prior to the beginning of
this Coverage Part or during the policy
period, we make any changes to any
forms or endorsements of this Coverage
Part for which there is currently no sepa-
rate premium charge, and that change
provides more coverage than this Cover-
age Part, the change will automatically
apply to this Coverage Part as of the lat-
ter of:

a. The date we implemented the
change in your state; or

b. The date this Coverage Part became
effective; and

will be considered as included until the
end of the current policy period. We will
make no additional premium charge for
this additional coverage during the in-
terim.

No Benefit to Bailee - Physical Damage
Coverages

We will not recognize any assignment or
grant any coverage for the benefit of any
person or organization holding, storing or
transporting property for a fee regardless
of any other provision of this Coverage
Form.

Includes copyrighted material of Insurance

Services Office, Inc., with its permission.

Page 9 of 14


———€ase>1:12-cv-00331 Document #: 1-1 Filed: 01/17/12 Page 41 of 65 PagelD #:45

IMPORTANT NOTICE TO ILLINOIS INSUREDS

DEFENSIVE DRIVING COURSE DISCOUNT
FOR SENIOR CITIZENS

In accordance with Illinois law, the Secretary of State will provide documentation to those people over age 55
who have successfully completed a defensive driving course. A discount of 5% will apply to the premiums for
Bodily Injury Liability, Property Damage Liability, Medical Payments, and Collision coverages of the vehicle
principally operated by any senior citizen who presents such documentation.

AA 4047 IL 03 98


Case: 1:12-cv-00331 Document #: 1-1 Filed: 01/17/12 Page 37 of 65 PagelD #:41

the matter may be settled by arbi-
tration. However, disputes con-
cerning coverage under this en-
dorsement may not be arbitrated.

The “insured” and we, however,
must mutually agree to arbitrate
the disagreements. If the “in-
sured” and we do not agree to ar-
bitrate, then the disagreement will
be resolved in a court of compe-
tent jurisdiction.

If arbitration is used, each party
will select an arbitrator. The two
arbitrators will select a third. If
they cannot agree within 45 days
as to the third arbitrator, either
may request that selection be
made by a judge of a court having
jurisdiction.

Each party will:

1. Pay the expenses it incurs;
and

2. Bear the expenses of the third
arbitrator equally.

b. Unless both parties agree otherwise,
arbitration will take place in the county
in which the “insured” lives. Local
tules of law as to procedure and evi-
dence will apply. A decision agreed to
by two of the arbitrators will be bindin-
gas to:

1. Whether the “insured” is legally
entitled to recover damages from
a party responsible for the “acci-
dent"; and

2. The amount of damages.

F. Additional Definiti
As used in this endorsement:

tionary and is not being used as a tempo-
fary or permanent residence or office.
“Motor vehicle” does not include a tolley,
streetcar, “trailer", railroad engine, railroad
car, motorized bicycle, golf cart, off-road
recreational vehicle, snowmobile, fork lift,
aircraft, watercraft, construction equipment,
farm tractor or other vehicle designed and
principally used for agricultural purposes,
mobile home, vehicle traveling on treads or
rails or any similar vehicle.

"Occupying" means in, upon, getting in, on,
out or off.

“Settlement agreement” means we and an
“insured” agree that the “insured” is legally
entitled to recover, from the owner or op-
erator of the "underinsured motor vehicle”,
damages for “bodily injury” and, without ar-
bitration, agree also as to the amount of
damages. Such agreement is final and
binding regardless of any subsequent
judgment or settlement reached by the "in-
sured” with the owner or operator of the
“underinsured motor vehicle”.

“Tentative settlement" means an offer from
the owner or operator of the “underinsured
motor vehicle" to compensate an “insured”
for damages incurred because of “bodily
injury” sustained in an accident involving an
“underinsured motor vehicle".

"Underinsured motor vehicle’ means a
"motor vehicle” for which the sum of the
limits of coverage available for payment to
the “insured” under all liability bonds or
policies covering person(s) or organiza-
tion(s) liabile to the “insured” at the time of
an “accident” are less than the Limit of In-
surance available for payment to the "in-
sured” under this coverage. However, “un-
derinsured motor vehicle” does not include
any vehicle:

a. Owned or operated by any self-insurer

1. "Family member” means a natural person under any applicable motor vehicle
who is related to and is a resident of the law.
same household as a natural person .
shown as a Named Insured in the Declara- b. Owned by a governmental unit or
tions of this Coverage Part. Such relation agency.
may be by blood, marriage or adoption, c. Designed for use mainly off public
and may include a ward or foster child. roads while not on public roads.

2. "Motor vehicle” means a self-propelled ve- ich I “uni icle".
hicle designed for use and principally used d. Which is an “uninsured motor vehicle".
on public roads, including an automobile, e. Owned by or furnished or available for
truck, semi-tractor, motorcycle and bus. your regular use or that of any "family
"Motor vehicle” also includes a motor member" or any other “insured”.
home, provided the motor home is not sta-

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AA 4045 IL 04 01 Properties, Inc., with its permission. Page 4 of 4


Case: 1:12-cv-00331 Document #: 1-1 Filed: 01/17/12 Page 46 of 65 PagelD #:50

Attached to POLICY
NUMBER _CPP 081 39 36/CPA 08] 39 36  __

SUMMARY OF PREMIUMS CHARGED

THIS POLICY CONSISTS OF THE FOLLOWING COVERAGE
PARTS FOR WHICH A PREMIUM CHARGE IS INDICATED

Commercial Property Coverage Part $ 4,610
Commercial General Liability Coverage Part $ 1,998
Commercial Umbrella / Excess Liability Coverage Part $ 3,750
CRIME AND FIDELITY COVERAGE PART $ 200

$

$

$

$

$

$

$

$

$

$

$

$
Installment Charge $ 20
Sub-Total $ 10,628
Commercial Auto Coverage Part $ 2,524
Auto Installment Charge $ INCL
Terrorism Coverage $ 73
Annual Total $ 13.225

PAYMENTS
All Other + Auto = Total Installment
First Remaining First Remaining First Remaining
Installment Installment Installment Installment Installment Installment
QUARTERLY $2,675 $2,675 +$ 631 $ 631 =$3,306 $3,306

Automobile Coverages, Employers Liability, Employment Practices Liability Coverage, Professional Liability
Coverage, Terrorism Coverage and / or Wrongful Acts Coverage, if included in the policy, are subject to
Annual Adjustment of rates and premium on each anniversary of the policy.

Commercial Umbrella and Excess Liability, if included in the policy, may be subject to Annual Adjustment of
premium on each anniversary. Refer to the Commercial Umbrella or Excess Liability Coverage Part
Declarations form to see if this is applicable.

ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED
1A 102 09 08


AA 101 03 06

quired because of an “accident”
we cover. We do not have to
furnish these bonds.

(3) The cost of bonds to release
attachments in any “suit” against
the “insured” we defend, but
only for bond amounts within our
Limit of Insurance.

(4) All reasonable expenses _in-
curred by the “insured” at our
request, including actual loss of
earnings up to $250 a day be-
cause of time off from work.

(5) All costs taxed against the “in-
sured” in any “suit” against the
“insured” we defend.

(6) All interest on the full amount of
any judgment that accrues after
entry of the judgment in any
“suit” against the "insured" we
defend, but our duty to pay in-
terest ends when we have paid,
offered to pay or deposited in
court the part of the judgment
that is within our Limit of Insur-
ance.

These payments will not reduce the
Limit of Insurance.

Out-of-State Coverage Extensions

While a covered “auto” is away from
the state where itis licensed we will:

{1) Increase the Limit of Insurance
for Liability Coverage to meet
the limits specified by a compul-
sory or financial responsibility
law of the jurisdiction where the
covered “auto” is being used.
This extension does not apply to
the limit or limits specified by
any law governing motor carri-
ers of passengers or property.

(2) Provide the minimum amounts
and types of other coverages,
such as no-fault, required of out-
of-state vehicles by the jurisdic-
tion where the covered “auto” is
being used.

We will not pay anyone more than
once for the same elements of loss
because of these extensions.

Exclusions

This insurance does not apply to any of the
following:

Case: 1:12-cv-00331 Document #: 1-1 Filed: 01/17/12 Page 14 of 65 PagelD #:18

Expected or Intended Injury

"Bodily injury” or “property damage”
which may reasonably be expected to re-
sult from the intentional or criminal acts of
the “insured” or which is in fact expected
or intended by the “insured”, even if the
injury or damage is of a different degree
or type than actually expected or in-
tended. This exclusion does not apply to
“bodily injury” resulting from the use of
reasonable force to protect persons or
property.

Contractual

Liability assumed under any contract or
agreement.

But this exclusion does not apply to liabil-
ity for damages:

a. Assumed in a contract or agreement
that is an "insured contract” provided
the “bodily injury” or “property dam-
age" occurs subsequent to the exe-
cution of the contract or agreement;
or

b. That the “insured” would have in the
absence of the contract or agree-
ment.

Workers’ Compensation

Any obligation for which the “insured” or
the “insured's” insurer may be held liable
under any workers’ compensation, dis-
ability benefits or unemployment com-
pensation law or any similar law.

Employee Indemnification and €m-
ployer's Liability

"Bodily injury” to:

a. An “employee” of the “insured” sus-
tained in the “workplace”;

b. An “employee” of the “insured” aris-
ing out of the performance of duties
related to the conduct of the “in-
sured's” business; or

c. The spouse, child, parent, brother or
sister of that “employee” as a conse-
quence of Paragraph a. or b. above.

This Exclusion applies:

(1) Whether the “insured” may be
liable as an employer or in any
other capacity; and

(2) To any obligation to share dam-
ages with or repay someone
else who must pay damages
because of the injury.

Includes copyrighted material of Insurance

Services Office, Inc., with its permission. Page 3 of 14


Case: 1:12-cv-00331 Document #: 1-1 Filed: 01/17/12 Page 56 of 65 PagelD #:60

ing a rejection of Underinsured Motorists
Coverage.

2. “Family members” of natural persons
shown as a Named Insured in the Declara-
tions of this Coverage Part.

3. Employees of the Named Insured, but only
for injuries arising out of and incurred while
in the course and scope of employment for
the Named Insured shown in the Declara-
tions of this Coverage Part.

4. Anyone for injuries incurred while “occupy-
ing” a covered “auto” or a temporary sub-
stitute for a covered “auto”. The covered
“auto” must be out of service because of its
break down, repair, servicing, “loss” or de-
struction.

5. Anyone for damages he or she is entitled to
recover because of “bodily injury” sustained
by another “insured”.

Cc. Exclusions

This insurance does not apply to any of the fol-
lowing:
1. Any claim settled without our consent.

2. The direct or indirect benefit of any insurer
under any personal injury protection, work-
ers’ compensation, disability benefits or
similar law.

3. “Bodily Injury” sustained by:

a. You while “occupying” or when struck
by any vehicle owned by you that is
not a covered “auto” for Underinsured
Motorists Coverage under this Cover-
age Part;

b. Any “family member" while "occupying"
or when struck by any vehicle owned
by that "family member” that is not a
covered “auto” for Underinsured Mo-
torists Coverage under this Coverage
Form; or

c. Any “family member" while “occupying”
or when struck by any vehicle owned
by you that is insured for Underinsured
Motorists Coverage on a primary basis
under any other Coverage Part or pol-
icy.

4. Any person while operating or occupying a
“motor vehicle” without reasonable belief
that he or she is entitled to do so.

5. Punitive or exemplary damages.
D. Limit of Insurance

1. Regardless of the number of covered
“autos”, “insureds”, premiums paid, claims
made or vehicles involved in the "accident",

the most we will pay for all damages re-
sulting from any one “accident” is the Limit
of Insurance for Underinsured Motorists
Coverage shown in the Schedule or the
Declarations.

Except in the event of a “settlement agree-
ment”, the Limit of Insurance for this cover-
age shall be reduced by all sums paid or
payable:

a. By or for anyone who is legally respon-
sible, including all sums paid under this
Coverage Part's Liability Coverage.

b. Under any personal injury protection,
workers’ compensation, _ disability
benefits or similar law.

ce. Under any automobile medical pay-
ments coverage. However, the Limit of
Insurance for this coverage shall not
be reduced by any sums paid or pay-
able under Social Security disability
benefits.

In the event of a “settlement agreement”,
the maximum Limit of Insurance for this
coverage shall be the amount by which the
limit of insurance for this coverage exceeds
the limits of bodily injury liability bonds or
policies applicable to the owner or operator
of the “underinsured motor vehicle”.

No one will be entitled to receive duplicate
payments for the same elements of “loss”
under this Coverage Part and any Liability
Coverage Part.

E. Changes in Conditions

The Conditions are changed for Underinsured
Motorists Coverage as follows:

1.

Other Insurance in the Business Auto and
Garage Coverage Forms and Other Insur-
ance - Primary and Excess Insurance
Provisions in the Truckers and Motor Car-
tier Coverage Forms are replaced by the
following:

If there is other applicable insurance avail-
able under one or more policies or provi-
sions of coverage:

a. The maximum recovery under all Cov-
erage Forms or policies combined may
equal but not exceed the highest appli-
cable limit for any one vehicle under
any Coverage Form or policy providing
coverage on either a primary or excess
basis.

b. Any insurance we provide with respect
to a vehicle you do not own shall be
excess over any other collectible un-
derinsured motorists insurance. We
will pay only the amount by which the

Includes copyrighted material of ISO
AA 4045 IL 04 01 Properties, Inc., with its permission. Page 2 of 4


AA 4044 IL 04 01

Case: 1:12-cv-00331 Document #: 1-1 Filed: 01/17/12 Page 54 of 65 PagelD #:58

home, provided the motor home is not sta-
tionary and is not being used as a tempo-
rary or permanent residence or office.
“Motor vehicle” does not include a trolley,
streetcar, “trailer”, railroad engine, railroad
car, motorized bicycle, golf cart, off-road
recreational vehicle, snowmobile, fork lift,
aircraft, watercraft, construction equipment,
farm tractor or other vehicle designed and
principally used for agricultural purposes,
mobile home, vehicle traveling on treads or
rails or any similar vehicle.

“Occupying” means in, upon, getting in, on,
out or off.

“Uninsured motor vehicle" means a “motor
vehicle”:

a. For which no liability bond or policy ap-
plies at the time of an “accident”.

b. For which an insuring or bonding com-
pany denies coverage or is or be-
comes insolvent.

¢. That is a hit-and-run vehicle and nei-
ther the driver nor owner can be identi-
fied. The vehicle must hit, or cause an

object to hit, an “insured”, a covered
“auto” or a vehicle an “insured” is “oc-
cupying”. If there is no physical con-
tact with the hit-and-run vehicle, the
facts of the “accident” must be proved.

However, “uninsured motor vehicle” does
not include any “motor vehicle”:

a. Owned or operated by a self-insurer
under any applicable motor vehicle
law, except a self-insurer who is or be-
comes insolvent and cannot provide
the amounts required by that motor
vehicle law.

b. Owned by a governmental unit or
agency.

c. Designed for use mainly off public
roads while not on public roads,

d. Owned by or furnished or available for
the regular use of any “insured”, other
than the named insured or a “family
member" of a named insured.

e. For which liability coverage is afforded
under this policy.

Includes copyrighted material of ISO

Properties, Inc., with its permission. Page 4 of 4


AA 261 03 06

Case: 1:12-cv-00331 Document #: 1-1 Filed: 01/17/12 Page 60 of 65 PagelD #:64

the “auto” is being prepared for such a
contest or activity.

D. Limit of Insurance

Regardless of the number of covered “autos”,
“insureds”, premiums paid, claims made or ve-
hicles involved in the "accident", the most we
will pay for "bodily injury" for each “insured” in-
jured in any one “accident” is the Limit of Insur-
ance for Auto Medical Payments Coverage
shown in the Declarations.

No one will be entitled to receive duplicate pay-
ments for the same elements of “loss” under
this coverage and any Liability Coverage Form,
Uninsured Motorists Coverage endorsement or
Underinsured Motorists Coverage Endorsement
attached to this Coverage Part.

Changes in Conditions

The Conditions are changed for Auto Medical
Payments Coverage as follows:

1. The Transfer of Rights of Recovery
Against Others to Us Condition does not
apply.

2. The reference in Other Insurance in the
Business Auto and Garage Coverage
Forms and Other Insurance - Primary and
Excess Ingurance Provisions in the Truck-
ers and Motor Carrier Coverage Forms to
“other collectible insurance” applies only to
other collectible auto medical payments in-
surance.

Additional Definitions
As used in this endorsement:

1. “Family member” means a person related
to you by blood, marriage or adoption who
is a resident of your household, including a
ward or foster child.

2. “Occupying” means in, upon, getting in, on,
out or off.

Includes copyrighted material of Insurance

Services Office, Inc., with its permission.

Page 2 of 2


Case: 1:12-cv-00331-Document #: 1-1 Filed: 01/17/12 Page 64 of 65 PagelD #:68

THE CINCINNATI INSURANCE COMPANY
P.O. BOX 145496, CINCINNATI, OHIO 45250-5496
513-870-2000
A STOCK INSURANCE COMPANY

AUTOMOBILE / GARAGE
RENEWAL CERTIFICATE
ATTACH THIS CERTIFICATE TO YOUR POLICY
POLICY NUMBER RENEWAL DATE EXPIRATION DATE
CPA 081 39 36 08-01-2010 08-01-2011

NAMED INSURED

RTW FOX VALLEY LLC, EVENTS OF ELEGANCE,
RTW MANAGEMENT INC

2500 N RIVER ROAD

N AURORA IL 60542

AGENCY
LUNDSTROM INSURANCE 12-141
ELGIN IL
IN RETURN FOR THE PAYMENT OF THE PREMIUM, AND SUBJECT TO ALL THE TERMS OF THIS POLICY UNLESS OTHERWISE SPECIFIED,
THE ABOVE NUMBERED POLICY IS RENEWED FOR THE TERM SHOWN ABOVE.
COVERAGE PROVIDED.

AUTOMOBILE - SEE SCHEDULE eee
REFER TO IA102_

FORMS APPLICABLE AT RENEWAL

1A102 09708 AASOL 03706 TASO1 05706
TAX ID# 005187
NB1 BSO
07-20-2010

Countersigned By
(Date) (Authorized Representative)

ORIGINAL

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AA 601 05 09 Services Office, Inc., with its permission. Page 1 of 2


Case: 1:12-cv-00331 Document #: 1-1 Filed: 01/17/12 Page 52 of 65 PagelD #:56

the Named Insured shown in the Declara-
tions of this Coverage Part.

Anyone for injuries incurred while "occupy-
ing” a covered "auto" or a temporary sub-
stitute for a covered “auto”. The covered
“auto” must be out of service because of its
break down, repair, servicing, “loss” or de-
struction.

Anyone for damages he or she is entitled to
recover because of “bodily injury” sustained
by another “insured”.

Exclusions

This insurance does not apply to any of the fol-
lowing:

1.
2.

5.

Any claim settled without our consent.

The direct or indirect benefit of any insurer
or self-insurer under any personal injury
protection, workers’ compensation, disabil-
ity benefits or similar law.

“Bodily injury” sustained by:

a. You while “occupying” or when struck
by any vehicle owned by you that is
not a covered “auto” for Uninsured
Motorists Coverage under this Cover-
age Part;

b. Any “family member" while “occupying”
or when struck by any vehicle owned
by that “family member” that is not a
covered “auto” for Uninsured Motorists
Coverage under this Coverage Part; or

c. Any “family member” while “occupying”
or when struck by any vehicle owned
by you that is insured for Uninsured
Motorists Coverage on a primary basis
under any other Coverage Part or pol-
icy.

Any person while operating or occupying a

motor vehicle without reasonable belief that

he or she is entitled to do so.

Punitive or exemplary damages.

Limit of Insurance

1.

AA 4044 IL 04 01

Regardless of the number of covered
“autos”, “insureds”, premiums paid, claims
made or vehicles involved in the “accident”,
the most we will pay for all damages re-
sulting from any one “accident” is the Limit
of Insurance for Uninsured Motorists Insur-
ance shown in the Schedule or the Decla-
rations.

We will apply the limit shown in the Decla-
rations to first provide the separate limits
required by the Illinois Safety Responsibility
Law as follows:

a. $20,000 for “bodily injury” to any one
person caused by any one “accident”,
and

b. $40,000 for “bodily injury” to two or
more persons caused by any one “ac-
cident’.

This provision will not change our total limit
of liability.

2. No one will be entitled to receive duplicate
payments for the same elements of “loss”
under this Coverage Part and any Liability
Coverage Part, Medical Payments Cover-
age endorsement or Underinsured Motor-
ists Coverage endorsement attached to this
Coverage Part.

We will not make a duplicate payment un-
der this Coverage Part for any element of
“loss” for which payment has been made
by or for anyone who is legally responsible.

We will not pay for any element of "loss’ if a
person is entitled to receive payment for the
same element of “loss” under any personal
injury protection, workers’ compensation,
disability benefits or similar law.

E. Changes in Conditions

The Conditions are changed for Uninsured
Motorists Insurance Coverage as follows:

1. Other Insurance in the Business Auto and
Garage Coverage Forms and Other Insur-
ance - Primary and Excess Insurance
Provisions in the Truckers and Motor Car-
tier Coverage Forms are replaced by the
following:

If there is other applicable insurance avail-
able under one or more policies or provi-
sions of coverage:

a. The maximum recovery under all Cov-
erage Forms or policies combined may
equal but not exceed the highest appli-
cable limit for any one vehicle under
any Coverage Form or policy providing
coverage on either a primary or excess
basis.

b. Any insurance we provide with respect
to a vehicle you do not own shall be
excess over any other collectible unin-
sured motorists insurance. We will pay
only the amount by which the limit of ti-
ability for this Coverage exceeds the
limit of liability of such other coverage.

c. If the coverage under this Coverage
Part is provided:

(1) On a primary basis, we will pay
only our share of the loss that
must be paid under insurance

Includes copyrighted material of ISO

Properties, Inc., with its permission. Page 2 of 4


AA 101 03 06

Case: 1:12-cv-00331 Document #: 1-1 Filed: 01/17/12 Page 24 of 65 PagelD #:28

(1) Snow removal;

(2) Road maintenance, but not con-
struction or resurfacing; or

(3) Street cleaning;

b. Cherry pickers and similar devices
mounted on automobile or truck
chassis and used to raise or lower
workers; and

c. Air compressors, pumps and gen-
erators, including spraying, welding,
building cleaning, geophysical explo-
ration, lighting or well servicing
equipment.

However, "mobile equipment" does not in-
clude land vehicles that are subject to a com-
pulsory or financial responsibility law or other
motor vehicle insurance law where it is li-
censed or principally garaged. Land vehicles
subject fo a compulsory or financial responsi-
bility law or other motor vehicle insurance law
are considered “autos”.

“Pollutants” means any solid, liquid, gaseous
or thermal irritant or contaminant, including
smoke, vapor, soot, fumes, acids, alkalis,
chemicals, petroleum, petroleum products
and their by-products, and waste. Waste in-
cludes materials to be recycled, reconditioned
or reclaimed. “Pollutants” include but are not
limited to substances which are generally rec-
ognized in industry or government to be
harmful or toxic to persons, property or the
environment regardless of whether injury or
damage is caused directly or indirectly by the
“pollutants” and whether:

1. The "insured" is regularly or otherwise
engaged in activities which taint or de-
grade the environment; or

2. The “insured” uses, generates or pro-
duces the “pollutant”.

|. “Property damage” means damage to or loss

of use of tangible property.
"Suit" means a civil proceeding in which:

1. Damages because of "bodily injury” or
"property damage”; or

2. A“covered pollution cost or expense”,
to which this insurance applies, are alleged.
“Suit” includes:

a. An arbitration proceeding in which
such damages or “covered pollution
costs or expenses" are claimed and
to which the “insured” must submit or
does submit with our consent; or

b. Any other alternative dispute resolu-
tion proceeding in which such dam-
ages or “covered pollution costs or
expenses” are claimed and to which
the insured submits with our con-
sent.

"Temporary worker" means a person who is
furnished to you to substitute for a permanent
“employee” on leave or to meet seasonal or
short-term workload conditions.

“Trailer” includes semitrailer.

“Workplace” means that place and during
such hours to which the “employee” sustain-
ing “bodily injury” was assigned by you, or
any other person or entity acting on your be-
half, to work on the date of the “accident”.

NUCLEAR ENERGY LIABILITY EXCLUSION ENDORSEMENT
(Broad Form)

The insurance does not apply:

A. Under any Liability Coverage, to “bodily
injury” or “property damage”:

(4) With respect to which an "insured"
under the policy is also an "insured"
under a nuclear energy liability policy
issued by Nuclear Energy Liability
Insurance Association, Mutual
Atomic Energy Liability Underwriters
or Nuclear Insurance Association of
Canada, or would be an “insured”
under any such policy but for its ter-
mination upon exhaustion of its limit
of liability; or

(2) Resulting from the “hazardous prop-
erties” of "nuclear material” and with

respect to which (a) any person or
organization is required to maintain
financial protection pursuant to the
Atomic Energy Act of 1954, or any
law amendatory thereof, or (b) the
“insured” is, or had this policy not
been issued would be, entitled to in-
demnity from the United States of
America, or any agency thereof, un-
der any agreement entered into by
the United States of America, or any
agency thereof, with any person or
organization.

B. Under any Medical Payments coverage,
to expenses incurred with respect to
“bodily injury” resulting from the “hazard-

Includes copyrighted material of Insurance

Services Office, Inc., with its permission.

Page 13 of 14


————€ase:-4:12-cv-00331 Document #: 1-1 Filed: 01/17/12 Page 42 of 65 PagelD #:46

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

AUTO MEDICAL PAYMENTS COVERAGE

Throughout this Coverage Form "you" and "your" refer to the organization and any specifically named natural
persons shown as the Named Insured in the Business Auto or Garage Coverage Part Declarations. “You”
and "Your" do not refer to any other persons or organizations, including but not limited to agents, employees,
servants, members, shareholders or independent contractors of any person or organization shown as the

Named Insured in the Business Auto or Garage Coverage Part Declarations.

This endorsement modifies insurance provided under the following:

BUSINESS AUTO COVERAGE FORM
GARAGE COVERAGE FORM

With respect to coverage provided by this endorsement, the provisions of the Coverage Form apply unless
modified by the endorsement.

A. Coverage

We will pay reasonable expenses incurred for
necessary medical and funeral services to or for
an “insured” who sustains “bodily injury” caused
by “accident”. We will pay only those expenses
incurred, for services rendered within three
years from the date of the "accident".

B. Who is an Insured

1.

% 2.

You while “occupying” or, while a pedes-
trian, when struck by any “auto”.

“Family members" of natural persons
shown as Named Insureds in the Business
Auto or Garage Coverage Part Declarations
while “occupying” or, while a pedestrian,
when struck by any “auto”.

Anyone for injuries while “occupying” a
covered “auto”.

Anyone for injuries while “occupying” a
temporary substitute for a covered “auto”.
The covered “auto” must be out of service
because of its breakdown, repair, servicing,
loss or destruction.

Cc. Exclusions

This insurance does not apply to any of the fol-
lowing:

1.

AA 261 03 06

“Bodily injury” sustained by an “insured”
while “occupying” a vehicle located for use
as a premises.

“Bodily injury” sustained by you or any
“family member” while “occupying” or struck
by any vehicle (other than a covered
auto”) owned by or furnished or available
for your regular use.

"Bodily injury” sustained by any “family

member” while “occupying” or struck by
any vehicle (other than a covered “auto")

owned by or fumished or available for the
regular use of any "family member”.

“Bodily injury” to your "employee" arising
out of and in the course of employment by
you. However, we will cover “bodily injury”
to your domestic “employees” if not entitled
to workers’ compensation benefits. For the
purposes of this endorsement, a domestic
“employee” is a person engaged in house-
hold or domestic work performed principally
in connection with a residence premises.

“Bodily injury” to an “insured” while working
in a business of selling, servicing, repairing
or parking “autos” unless that business is
yours.

“Bodily injury" arising directly or indirectly
out of:

a. War, including undeclared or civil war;

b. Warlike action by a military force, in-
cluding action in hindering or defend-
ing against an actual or expected at-
tack, by any government, sovereign or
other authority using military personnel
or other agents; or

c. Insurrection, rebellion, revolution,
usurped power, or action taken by
govemmental authority in hindering or
defending against any of these.

“Bodily injury” to anyone using a vehicle
without a reasonable belief that the person
is entitled to do so.

“Bodily injury” sustained by an “insured”
while “occupying” any covered “auto” while
used in any professional racing or demoli-
tion contest or stunting activity, or while
practicing for such contest or activity. This
insurance also does not apply to any "bod-
ily injury” sustained by an “insured” while

Includes copyrighted material of Insurance

Services Office, Inc., with its permission.

Page 1 of 2


Case: 1:12-cv-00331 Document #: 1-1 Filed: 01/17/12 Page 5 of 65 PagelD #:9

multi-claim scenarios such as is presented in the instant case, Section D(1) limits Cincinnati’s
aggregate claim exposure to $1 million.

23. Absent from Section D(1), however, is any language that suggests that the aggregate “per
occurrence” Limit of Insurance is reduced by the recovery obtained from the tortfeasor.

24, Under Section D(2) of the Underinsured Endorsement, Cincinnati's coverage for an
individual insured’s claim is reduced by the recovery that such insured makes against the

tortfeasor:

Except in the event of a “settlement agreement”, the Limit of Insurance for this coverage
shall be reduced by all sums paid or payable:

a. By or for anyone who is legally responsible, including all sums paid under this
Coverage Part’s Liability Coverage.®

25. The only reasonable interpretation of Section D(2) is that the reduction refers only to an
individual insured’s claim, and not, as Cincinnati contends, to reduce the aggregate amount of
coverage available to all insureds. Unlike Section D(1) which defines its limitation to apply to
“the most we will pay for all damages resulting from any one ‘accident’”, the language of
Section D(2) defines its reduction to apply to the “Limit of Insurance for this coverage”. As the
term “coverage” is specifically defined in terms of the claim of a single “insured”, the reduction
language utilized in Section D(2) can only be applied as to the coverage afforded as to individual
insured’s claim.

26. Under Plaintiffs’ interpretation, Heike Wehrle’s claim of $1.5 million would be reduced
by Section D(2)’s individual claim limit to $900,000.00; while Robert Wehrle’s claim of

$750,000 would be reduced to $650,000. As the sum of the claims after the Section D(2)

° See page 2 of the Underinsured Endorsement referenced as Exhibit A-1.

5


Case: 1:12-cv-00331 Document #: 1-1 Filed: 01/17/12 Page 35 of 65 PagelD #:39

ing a rejection of Underinsured Motorists
Coverage.

“Family members” of natural persons
shown as a Named Insured in the Declara-
tions of this Coverage Part.

Employees of the Named Insured, but only
for injuries arising out of and incurred while
in the course and scope of employment for
the Named Insured shown in the Declara-
tions of this Coverage Part.

Anyone for injuries incurred while “occupy-
ing” a covered “auto” or a temporary sub-
stitute for a covered “auto”. The covered
“auto” must be out of service because of its
break down, repair, servicing, “loss” or de-
struction.

Anyone for damages he or she is entitled to
recover because of “bodily injury” sustained
by another "insured",

Cc. Exclusions

This insurance does not apply to any of the fol-

lowing:

1. Any claim settled without our consent.

2. The direct or indirect benefit of any insurer
under any personal injury protection, work-
ers’ compensation, disability benefits or
similar law.

3. "Bodily Injury” sustained by:

a. You while “occupying” or when struck
by any vehicle owned by you that is
not a covered “auto” for Underinsured
Motorists Coverage under this Cover-
age Part;

b. Any “family member’ while “occupying”
or when struck by any vehicle owned
by that “family member" that is not a
covered “auto” for Underinsured Mo-
torists Coverage under this Coverage
Form; or

¢. Any “family member" while “occupying”
or when struck by any vehicle owned
by you that is insured for Underinsured
Motorists Coverage on a primary basis
under any other Coverage Part or pol-
icy.

4. Any person while operating or occupying a
"motor vehicle” without reasonable belief
that he or she is entitled to do so.

5. Punitive or exemplary damages.

D. Limit of Insurance

3.

the most we will pay for all damages re-
sulting from any one “accident” is the Limit
of Insurance for Underinsured Motorists
Coverage shown in the Schedule or the
Declarations.

Except in the event of a "settlement agree-
ment”, the Limit of Insurance for this cover-
age shall be reduced by all sums paid or
payable:

a. By or for anyone who is legally respon-
sible, including all sums paid under this
Coverage Part's Liability Coverage.

b. Under any personal injury protection,
workers’ compensation, disability
benefits or similar law.

c. Under any automobile medical pay-
ments coverage. However, the Limit of
Insurance for this coverage shall not
be reduced by any sums paid or pay-
able under Social Security disability
benefits.

In the event of a “settlement agreement”,
the maximum Limit of Insurance for this
coverage shall be the amount by which the
limit of insurance for this coverage exceeds
the limits of bodily injury liability bonds or
policies applicable to the owner or operator
of the “underinsured motor vehicle”.

No one will be entitled to receive duplicate
payments for the same elements of “loss”
under this Coverage Part and any Liability
Coverage Part.

Changes in Conditions

The Conditions are changed for Underinsured
Motorists Coverage as follows:

1.

Other Insurance in the Business Auto and
Garage Coverage Forms and Other Insur-
ance - Primary and Excess Insurance
Provisions in the Truckers and Motor Car-
rier Coverage Forms are replaced by the
following:

if there is other applicable insurance avail-
able under one or more policies or provi-
sions of coverage:

a. The maximum recovery under all Cov-
erage Forms or policies combined may
equal but not exceed the highest appli-
cable limit for any one vehicle under
any Coverage Form or policy providing
coverage on either a primary or excess
basis.

b. Any insurance we provide with respect
to a vehicle you do not own shall be
excess over any other collectible un-
derinsured motorists insurance. We
will pay only the amount by which the

Includes copyrighted material of ISO.

1. Regardless of the number of covered
“autos”, "insureds", premiums paid, claims
made or vehicles involved in the “accident”,

AA 4045 IL 04 01

Properties, Inc., with its permission.

Page 2 of 4


Case: 1:12-cv-00331 Document #: 1-1 Filed: 01/17/12 Page 21 of 65 PagelD #:25

5. Other Insurance

For any covered “auto” you own, this
Coverage Form provides primary in-
surance. For any covered “auto” you
don't own, the insurance provided by
this Coverage Form is excess over
any other collectible insurance.
However, while a covered “auto”
which is a “trailer” is connected to
another vehicle, the Liability Cover-
age this Coverage Form provides for
the “trailer” is:

(1) Excess while itis connected to a

motor vehicle you do not own.

(2) Primary while it is connected to
a covered “auto” you own.

For Hired Auto Physical Damage
Coverage, any covered “auto” you
lease, hire, rent or borrow is deemed
to be a covered “auto” you own.
However, any “auto” that is leased,
hired, rented or borrowed with a
driver is not a covered “auto”.

Regardless of the provisions of
Paragraph a. above, this Coverage
Form's Liability Coverage is primary
for any liability assumed under an
“insured contract”,

When this Coverage Form and any
other Coverage Form or policy cov-
ers on the same basis, either excess
or primary, we will pay only our
share. Our share is the proportion
that the Limit of Insurance of our
Coverage Form bears to the total of
the limits of all the Coverage Forms
and policies covering on the same
basis.

6. Premium Audit

a

AA 101 03 06

The estimated premium for this Cov-
erage Form is based on the expo-
sures you told us you would have
when this policy began. We will
compute the final premium due when
we determine your actual exposures,
The estimated total premium will be
credited against the final premium
due and the first Named Insured will
be billed for the balance, if any. The
due date for the final premium or ret-
rospective premium is the date
shown as the due date on the bill. If
the estimated total premium exceeds
the final premium due, the first
Named Insured will get a refund.

b. If this policy is issued for more than
one year, the premium for this Cov-
erage Form will be computed annu-
ally based on our rates or premiums
in effect at the beginning of each
year of the policy.

Policy Period, Coverage Territory

Under this Coverage Form, we cover
“accidents” and "losses" occurring:

a. During the Policy Period shown in
the Declarations; and

b. Within the coverage territory.
The coverage territory is:
a. The United States of America;

b. The territories and possessions of
the United States of America;

¢. Puerto Rico;
d. Canada; and
e. Anywhere in the world if:

(1) A covered “auto” of the private
passenger type is leased, hired,
rented or borrowed without a
driver for a period of 30 days or
less; and

(2) The “insured’s" responsibility to
pay damages is determined in a
"suit" on the merits, in the United
States of America, the territories
and possessions of the United
States of America, Puerto Rico,
or Canada or in a settlement we
agree to.

We also cover "loss" to, or “accidents” in-
volving, a covered “auto” while being
transported between any of these places.

Two or More Coverage Forms or Poli-
cies Issued by Us

If this Coverage Form and any other
Coverage Form or policy issued to you by
us or any company affiliated with us apply
to the same “accident”, the aggregate
maximum Limit of Insurance under all the
Coverage Forms or policies shall not ex-
ceed the highest applicable Limit of In-
surance under any one Coverage Form
or policy. This condition does not apply to
any Coverage Form or policy issued by
us or an affiliated company specifically to
apply as excess insurance over this Cov-
erage Form.

Includes copyrighted material of Insurance

Services Office, Inc., with its permission.

Page 10 of 14


Case: 1:12-cv-00331 Document #: 1-1 Filed: 01/17/12 Page 27 of 65 PagelD #:31

UNINSURED/UNDERINSURED MOTORISTS
PROTECTION OPTION SELECTION FORM - ILLINOIS

The laws of lilinois require that automobile liability insurance policies offer Uninsured/Underinsured Motorists
Coverage limits equal to the Bodily Injury Limits of the policy to which the coverage attaches. You may, how-
ever, select coverage at a lower limit.

YOU ARE ELECTING TO PURCHASE UNINSURED MOTORISTS LIMITS LESS THAN YOUR BODILY IN-
JURY LIABILITY LIMITS WHEN YOU SIGN THIS FORM.

Uninsured Motorists Coverage provides for payment of certain benefits for damages caused by owners or
operators of uninsured motor vehicles because of bodily injury or death resulting therefrom.

Underinsured Motorists Coverage provides for payment of certain benefits for damages caused by owners or
Operators of underinsured motor vehicles because of bodily injury or death resulting therefrom.

An Underinsured motor vehicle is a vehicle to which a bodily injury policy or bond applies at the time of the
accident but its limit for bodily injury liability is less than the limit of liability for this coverage.

Such benefits may include payments for certain medical expenses, lost wages and pain and suffering, subject
to limitations and conditions in the policy.

Uninsured/Underinsured Motorist options are available for a modest premium: PLEASE CONTACT YOUR
AGENT for the exact cost.

PLEASE SELECT ONE OF THE FOLLOWING:
| select Uninsured/Underinsured Motorists Coverage at the following limits which are lower than the
Bodily Injury Liability Limits of my policy.
Thousand Dollars

Split Limit Single Limit
LIMITS OF LIABILITY O *20/40 O 55
O 250 O 75
O 50/100 O 100
Q 100/300 O 300
O Other O1 Other

Pasir to and forming a part of Policy Number GPA 081 39 36 and any Renewal or Replacement
ereof.

DATE

INSURED'S SIGNATURE

NOTE: A. ‘Underinsured Motorist Coverage does not apply unless Uninsured Motorist Coverage limits ex-
ceed the minimum Financial Responsibility Limits of $20,000 each person/$40,000 each occur-
tence or $55,000 Single Limit Lial ility.

B. Please refer to form CPA-1314 IL for information regarding "Uninsured Motorist Property Dam-
age”.

AP 401 IL (7/95)


H.

AA 101 03 06

Case: 1:12-cv-00331 Document #: 1-1 Filed: 01/17/12 Page 23 of 65 PagelD #:27

Except with respect to the Limit of Insurance,
the coverage afforded applies separately to
each insured who is seeking coverage or
against whom a claim or “suit” is brought.

"Insured contract”:
1. Means:
a. Alease of premises;
b. Asidetrack agreement;

ce. An easement or license agreement,
except in connection with construc-
tion or demolition operations on or
within 50 feet of a railroad;

d. An obligation, as required by ordi-
nance, to indemnify a municipality,
except in connection with work for a
municipality;

e. That part of any other contract or
agreement pertaining to your busi-
ness (including an indemnification of
a municipality in connection with
work performed for a municipality)
under which you assume the tort li-
ability of another to pay for “bodily
injury” or “property damage” to a
third party or organization. Tort liabil-
ity means a liability that would be im-
posed by law in the absence of any
contract or agreement;

f. That part of any other contract or
agreement entered into, as part of
your business, pertaining to the
rental or lease, by you or any of your
“employees”, of any “auto”. How-
ever, such contract or agreement
shall not be considered an "insured
contract” to the extent that it obli-
gates you or any of your “employ-
ees" to pay for “property damage” to
any “auto” rented or leased by you
or any of your “employees”.

2. Does not include that part of any contract
or agreement:

a. That indemnifies a railroad for “bodily
injury" or “property damage” arising
out of construction or demolition op-
erations, within 50 feet of any rail-
Toad property and affecting any rail-
road bridge or trestle, tracks, road
beds, tunnel, underpass or crossing;
or

b. That pertains to the loan, lease or
rental of an “auto” to you or any of
your “employees”, if the “auto” is
loaned, leased or rented with a
driver; or

¢. That holds a person or organization
engaged in the business of trans-
porting property by “auto” for hire
harmless for your use of a covered
“auto” over a route or territory that
person or organization is authorized
to serve by public authority.

“Leased worker” means a person leased to
you by a labor leasing firm under an agree-
ment between you and the labor leasing firm,
to perform duties related to the conduct of
your business. "Leased worker” includes su-
pervisors furnished to you by the labor leasing
firm. "Leased worker” does not include a
“temporary worker”.

“Loss" means direct and accidental loss or
damage.

“Mobile equipment” means any of the follow-
ing types of land vehicles, including any at-
tached machinery or equipment:

1. Bulldozers, farm machinery, forklifts and
other vehicles designed for use princi-
pally off public roads;

2. Vehicles maintained for use solely on or
next to premises you own or rent;

Vehicles that travel on crawler treads;

Vehicles, whether self-propelled or not,
maintained primarily to provide mobility to
permanently mounted:

a. Power cranes, shovels, loaders, dig-
gers or drills; or

b. Road construction or resurfacing
equipment such as graders, scrap-
ers or rollers.

5. Vehicles not described in Paragraphs 1.,
2., 3., or 4. above that are not self-
propelled and are maintained primarily to
provide mobility to permanently attached
equipment of the following types:

a. Air compressors, pumps and gen-
erators, including spraying, welding,
building cleaning, geophysical explo-
ration, lighting and well servicing
equipment; or

b. Cherry pickers and similar devices
used to raise or lower workers.

6. Vehicles not described in Paragraphs 1.,
2., 3., or 4. above maintained primarily for
Purposes other than the transportation of
persons or cargo. However,  self-
propelled vehicles with the following
types of permanently attached equipment
are not "mobile equipment” but will be
considered “autos”:

a. Equipment designed primarily for:

Includes copyrighted material of Insurance

Services Office, Inc., with its permission.

Page 12 of 14


AA 4045 IL 04 01

limit of liability for the Coverage ex-
ceeds the limit of liability of such other
insurance.

c. If the coverage under this Coverage
Part is provided:

(1) On a primary basis, we will pay
only our share of the loss that
must be paid under insurance
providing coverage on a primary
basis. Our share is the proportion
that our limit of liability bears to the
total of all applicable limits of liabil-
ity for coverage on a primary ba-
sis.

(2) On an excess basis, we will pay
only our share of the loss that
must be paid under insurance
providing coverage on an excess
basis. Our share is the proportion
that our limit of liability bears to the
total of all applicable limits of liabil-
ity for coverage on an excess ba-
sis.

2. Duties in the Event of Accident, Claim,

Suit or Loss is changed by adding the fol-
lowing:

a. Give us written notice of a “tentative
settlement” and allow us 30 days to
advance payment in an amount equal
to that settlement within 30 days after
receipt of notification to preserve our
rights against the owner or operator of
the “underinsured motor vehicle";

b. File "suit" against the owner or opera-
tor of the "underinsured motor vehicle”
prior to the conclusion of a “settlement
agreement”. Such "suit" cannot be
abandoned or settled without giving us
written notice of a “tentative settle-
ment" and allowing us 30 days to ad-
vance payment in an amount equal to
that settlement to preserve our rights
against the owner or operator of the
“underinsured motor vehicle”; .

¢. You or any other involved “insured”
must promptly notify the police if a hit-
and-run driver is involved; and

d. You or any other involved “insured”
must promptly send us copies of the
legal papers if a “suit” is brought.

e. You and any other involved “insured”
must cooperate with us in the investi-
gation, settlement or defense of the
claim or "suit". Cooperation includes
identifying all parties who may be re-
sponsible for the “accident” and all in-
surers who may be obligated to pro-
vide coverage.

—_______Case:.1:12-cv-00331 Document #: 1-1 Filed: 01/17/12 Page 36 of 65 PagelD #:40

The following is added to Transfer of
Rights of Recovery Against Others to
Us:

Transfer of Rights of Recovery Against
Others to Us does not apply to damages
caused by an “accident” with an “underin-
sured motor vehicle” if we:

a. Have been given prompt written notice
of a tentative settlement between an
“insured” and a person(s) or organiza-
tion(s) who may be legally responsible
for the “accident”, or the insurer or le-
gal representative of such person(s) or
organization(s); and

b. Fail to advance payment to the "in-
sured" in an amount equal to the “ten-
tative settlement” within 30 days after
receipt of the notice.

If we advance payment to the “insured” in
an amount equal to the “tentative settle-
ment” within 30 days after receipt of notice:

a. That payment will be separate from
any amount the “insured” is entitled to
recover under the provisions of Un-
derinsured Motorists Coverage, and

b. We will also have a right to recover the
advanced payment.

However, in the event of a “settlement
agreement", we shall be entitled to recover
only for amounts which exceed the limit of
bodily injury liability bonds or policies appli-
cable to the owner or operator of the “un-
derinsured motor vehicle”.

The following Conditions are added:
REIMBURSEMENT AND TRUST

lf we make any payment and the “insured”
recovers from another party, the “insured”
shall hold the proceeds in trust for us and
pay us back the amount we have paid.

However, in the event of a "settlement
agreement”, we shall be entitled to recover
only for amounts which exceed the limit of
bodily injury liability bonds or policies appli-
cable to the owner or operator of the “un-
derinsured motor vehicle”.

ARBITRATION
a. |fwe and an “insured” do not agree:

1. Whether that person is legally en-
titled to recover damages from a
party responsible for the “acci-
dent”; or

2. As to the amount of damages that
may be recovered ;

Includes copyrighted material of ISO

Properties, Inc., with its permission. Page 3 of 4


Case: 1:12-cv-00331 Document #: 1-1 Filed: 01/17/12 Page 18 of 65 PagelD #:22

“auto” is retumed to use or we pay
for its “loss”.

b. Loss of Use Expenses

For Hired Auto Physical Damage, we
will pay expenses for which an "in-
sured” becomes legally responsible
to pay for loss of use of a vehicle
rented or hired without a driver, un-
der a written rental contract or
agreement. We will pay for loss of
use expenses if caused by:

(1) Other than collision only if the
Declarations indicate that Com-
prehensive Coverage is pro-
vided for any covered "auto";

(2) Specified Causes of Loss only if
the Declarations indicate that
Specified Causes of Loss Cov-
erage is provided for any cov-
ered "auto"; or

(3) Collision only if the Declarations
indicate that Collision Coverage
is provided for any covered
“auto”.

However, the most we will pay for
any expenses for loss of use is $20
per day, to a maximum of $600.

B. Exclusions

1.

AA 101 03 06

We will not pay for "loss" caused by or
resulting from any of the following. Such
"loss" is excluded regardless of any other
cause or event that contributes concur-
rently or in any sequence to the "loss".

a. Nuclear Hazard

(1) The explosion of any weapon
employing atomic fission or fu-
sion; or

(2) Nuclear reaction or radiation, or
radioactive contamination, how-
ever caused.

b. War or Military Action

(1) War, including undeclared or
civil war;

(2) Warlike action by a military
force, including action in hin-
dering or defending against an
actual or expected attack, by
any government, sovereign or
other authority using military
personnel or other agents; or

(3) Insurrection, rebellion, revolu-
tion, usurped power or action
taken by governmental authority

in hindering or defending
against any of these.

We will not pay for "loss" to any covered
“auto” while used in any professional or
organized racing or demolition contest or
stunting activity, or while practicing for
such contest or activity. We will also not
pay for “loss” to any covered "auto" while
that covered “auto” is being prepared for
such a contest or activity.

We will not pay for "loss" caused by or
resulting from any of the following unless
caused by other "loss" that is covered by
this insurance:

a. Wear and tear, freezing, mechanical
or electrical breakdown; or

b. Blowouts, punctures or other road
damage to tires,

We will not pay for “loss” to any of the
following:

a. Tapes, records, discs or other similar
audio, visual or data electronic de-
vices designed for use with audio,
visual or data electronic equipment.

b. Any device designed or used to de-
tect speed measuring equipment
such as radar or laser detectors and
any jamming apparatus intended to
elude or disrupt speed measurement
equipment.

e. Any electronic equipment, without
regard to whether this equipment is
permanently installed, that receives
or transmits audio, visual or data
signals and that is not designed
solely for the reproduction of sound.

d. Any accessories used with the elec-
tronic equipment described in Para-
graph c. above.

Exclusions 4.c. and 4.d. do not apply to:

a. Equipment designed solely for the
reproduction of sound and accesso-
fies used with such equipment, pro-
vided such equipment is perma-
nently installed in the covered “auto”
at the time of the “loss” or such
equipment is removable from a
housing unit which is permanently
installed in the covered “auto” at the
time of the "loss", and such equip-
ment is designed to be solely Oper-
ated by use of the power from the
“auto's” electrical system, in or upon
the covered “auto”; or

b. Any other electronic equipment that
is:

Includes copyrighted material of Insurance

Services Office, Inc., with its permission.

Page 7 of 14


~ €ase* 1:12-cv-00331 Document #: 1-1 Filed: 01/17/12 Page 62 of 65 PagelD #:66

THE CINCINNATI INSURANCE COMPANY
AUTOMOBILE CHANGE ENDORSEMENT

Endorsement Number:

Change Effective: 10/05/2010
Policy Expiration Date: 08/01/2011
Pay Plan: QUARTERLY

Bodily Injury: 1,000,000
Property Damage: Incl
Medical Payments: 5,000

Combined Annual Difference

installment Premium

Total Annual Financed Premium

Pro Rate Factor

Return Premium for Balance of Policy Year
Number of Remaining Installments X #2
Cash Return Due Now

Old Instaliment Premium

Decrease each Remaining Installment
New Installment Premium

User ID: JBENNET
Activity Date: 10/19/2010

AA 407 W 09 09

Policy Number:

Policy Limits

Ratebook: 09/01/2010 (IL)

CPA 0813936

SOMNAMAWNA

Quote Number: 2112141

Return Premium $878 FLAT
Decreased Installment
First Installment

Remaining Installment(s)

UM/UIM: 1,000,000
UMPD: N/A

-1,068
-267
-1,068
0.822
878

878

Version: 1


Case: 1:12-cv-00331 Document #: 1-1 Filed: 01/17/12 Page 10 of 65 PagelD #:14

QUICK REFERENCE
COMMERCIAL AUTO COVERAGE PART
BUSINESS AUTO COVERAGE FORM
READ YOUR POLICY CAREFULLY

DECLARATIONS PAGES

Named Insured and Mailing Address
Policy Period

Description of Business

Coverages and Limits of Insurance

SECTION | - COVERED AUTOS Beginning on Page

Description of Covered Auto Designation Symbols
Owned Autos You Acquire After the Policy Begins
Certain Trailers, Mobile Equipment and

Temporary Substitute Autos

SECTION Il - LIABILITY COVERAGE

Coverage........
Who is an Insured
Coverage Extensions ts
upplementary Payment
“Out of State aia
Exclusions. .....
Limit of Insurance.

Teen mw

SECTION II! - PHYSICAL DAMAGE COVERAGE

Coverage...
Exclusions .
Limit of Insurance.
Deductible

DONN

SECTION IV - BUSINESS AUTO CONDITIONS

SECTION V - DEFINITIONS.........

Loss Conditions .
Appraisal for Physical Damage Loss.. sca
Duties in the Event of Accident, Claim, Suit or Loss
Legal Action Against Us......
Loss Payment - Physical Damage Coverages
Transfer of Rights of Recovery Against Others to Us.
General Conditions
Bankruptcy ..
Concealmen:
Liberalizatior
No Benefit t
Other Insurance
Premium Audi :
Policy Period, Coverage Territory
Two or More Coverage Forms or Policies Issued by Us

COMMON POLICY CONDITIONS

Cancellation

Changes |

Examination of Your Books and Records
Inspections and Surveys

Premiums . . .
Transfer of Your Rights and Duties under this Policy

ENDORSEMENTS (If Any)

Includes copyrighted material of Insurance

AA 501 03 06 Services Office, Inc., with its permission. Page 2 of 2


Case: 1:12-cv-00331 Document #: 1-1 Filed: 01/17/12 Page 33 of 65 PagelD #:37

home, provided the motor home is not sta-
tionary and is not being used as a tempo-
ary or permanent residence or office.
"Motor vehicle” does not include a trolley,
streetcar, “trailer”, railroad engine, railroad
car, motorized bicycle, golf cart, off-road
recreational vehicle, snowmobile, fork lift,
aircraft, watercraft, construction equipment,
farm tractor or other vehicle designed and
principally used for agricultural purposes,
mobile home, vehicle traveling on treads or
rails or any similar vehicle

object to hit, an “insured”, a covered
“auto” or a vehicle an “insured” is "oc-
cupying”. If there is no physical con-
tact with the hit-and-run vehicle, the
facts of the "accident" must be proved.

However, “uninsured motor vehicle” does
not include any "motor vehicle":

a. Owned or operated by a self-insurer
under any applicable motor vehicle
law, except a self-insurer who is or be-
comes insolvent and cannot provide
the amounts required by that motor

3. “Occupying” in, , getting in, on, 7
oatar or means in, upon, getting in, on, vehicle law.
4, "Uninsured motor vehicle” means a "motor b. Owned by a govemmental unit or

vehicle":

a. For which no liability bond or policy ap-
plies at the time of an “accident”.

b. For which an insuring or bonding com-
pany denies coverage or is or be-
comes insolvent.

c. That is a hit-and-run vehicle and nei-
ther the driver nor owner can be identi-
fied. The vehicle must hit, or cause an

agency.

c. Designed for use mainly off public
toads while not on public roads.

d. Owned by or furnished or available for
the regular use of any "insured", other
than the named insured or a “family
member" of a named insured.

e. For which liability coverage is afforded
under this policy.

Includes copyrighted material of ISO

Properties, Inc., with its permission. Page 4 of 4

AA 4044 IL 04 01


Case: I712-cv-00331 Document #: 1-1 Filed: 01/17/12 Page 30 of 65 PagelD #:34

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

ILLINOIS UNINSURED MOTORISTS COVERAGE

Throughout this Coverage Part "you" and "your" refer to the organizations and natural persons shown as a
Named Insured in the Declarations of this Coverage Part. "You" and “your” do not refer to any other persons
or organizations, including but not limited to agents, employees, servants, members, shareholders or inde-
pendent contractors of any person or organization shown as a Named insured in the Declarations of this
Coverage Part.

For a covered “auto” licensed or principally garaged in, or "garage operations” conducted in, Illinois, this en-
dorsement modifies insurance provided under the following:

BUSINESS AUTO COVERAGE FORM
GARAGE COVERAGE FORM

MOTOR CARRIER COVERAGE FORM
TRUCKERS COVERAGE FORM

With respect to coverage provided by this endorsement, the provisions of the Coverage Part apply unless
modified by the endorsement.

This endorsement changes the policy effective on the inception date of the Coverage Part unless another
date is indicated below.

Endorsement Effective: Policy Number:
08-01-2010 CPA_081 39 36

Named Insured:

RTW FOX VALLEY LLC, EVENTS OF ELEGANCE, RTW MANAGEMENT INC

Countersigned by:

(Authorized Representative)
SCHEDULE

Limit of Insurance
$ Each "Accident"

(If no entry appears above, information required to complete this endorsement will be shown in the Declara-
tions as applicable to this endorsement).

A. Coverage 3. Any judgment for damages arising out of a
. ws _ “suit” brought without our written consent is
1. We will pay all sums the “insured” is legally not binding on us.

entitled to recover as compensatory dam-
ages from the owner or operator of an "un- BB. Who is an Insured
insured motor vehicle". The damages must

result from “bodily injury” sustained by the The following are insureds:

insured” caused by an “accident”. The 1. You are an “insured”. However, if you are
owner's or operator's liability for these not a natural person, you are an “insured”
damages must result from the ownership, only for purposes of selecting limits of Un-
maintenance or use of the “uninsured mo- insured Motorists Coverage or executing a
tor vehicle’. rejection of Uninsured Motorists Coverage.
2. If this insurance provides a limit in excess 2. “Family members” of natural persons
of the amounts required by the applicable shown as a Named Insured in the Declara-
law where a covered “auto” is principally tions of this Coverage Part.
garaged, we will pay only after all liability .
bonds or policies have been partially or fully 3. Employees of the Named Insured, but only
exhausted by payment of judgments or set- for injuries arising out of and incurred while
tlements. in the course and scope of employment for

Includes copyrighted material of ISO
AA 4044 IL 04 01 Properties, Inc., with its permission. Page 1 of 4


Case: 1:12-cv-00331 Document #: 1-1 Filed: 01/17/12 Page 7 of 65 PagelD #:11

30. A further example illustrates the absurdity of Cincinnati’s position. Assume that Robert
Wehrle’s claim was only $100,000 and that Heike Wehrle’s claim remained at $1.5 million.
Under Cincinnati’s theory, Heike would only be entitled to collect $800,000 because her
husband received $100,000 from the tortfeasor.

31. Cincinnati’s position that the aggregate “per occurrence” Limit of Insurance is reduced to
$800,000.00 is not supported by its policy language. Section D(1), which clearly sets the Limit
of Insurance on an aggregate basis, does not reference that the aggregate limit would be reduced
based upon the payments made on behalf of the tortfeasor. As “coverage” is defined on an
individual “per insured” basis, the language which reduces “coverage” set forth in Section D(2),
absent clear unequivocal language to the contrary, cannot be applied as a supplemental reduction
of the “per occurrence” aggregate which is addressed in Section DQ). If in fact, Cincinnati
intended Section D(2) to reduce the Limit of Insurance on an aggregate basis, the same language
utilized in Section D(1) referencing “the most we will pay for all damages resulting from one
“accident” could have been easily inserted.

32. A court's primary objective in construing an insurance contract is to ascertain and give
effect to the intention of the parties as expressed in the agreement. If an insurance policy’s terms
are clear and unambiguous, they must be enforced as written unless doing so would violate
public policy.

33. Plaintiffs desire a judicial determination of Cincinnati’s coverage obligations, and a
declaration that: (i) Cincinnati is obligated to pay, on an aggregate “per occurrence” basis, $1
million towards the plaintiffs’ damages; (ii) Cincinnati may only setoff from each of its insured’s

claim the $100,000 they received from GEICO; and that (iii) in addition to the $800,000


Case: 1:12-cv-00331 Document #: 1-1 Filed: 01/17/12 Page 6 of 65 PagelD #:10

reductions total $1,550,000.00, the Wehrle’s are also subject to Section D(1)’s aggregate ‘per
occurrence’ limitation of $1 million dollars, and their claims will abate proportionately.

27. The Plaintiffs’ interpretation is consistent with the language of Section D(3) which also
references a reduction to the “maximum Limit of Insurance for this coverage” to equal “the
amount by which the limit of insurance for this coverage exceeds the limits of bodily injury
liability bonds or policies applicable to the owner or operator of the “underinsured motor
vehicle”, As Cincinnati’s definition of “underinsured motor vehicle” in Section F is defined in
terms of the individual claim of an insured, the coverage reducing language of Section D(3),
consistent with the coverage reducing language of Section D(2), cannot be used as a
supplement to the “per occurrence” limiting language of Section D(1).

28. Under Cincinnati’s interpretation of Section D(2), a reduction in Cincinnati’s aggregate
claim exposure occurs without reference to an individual insured’s claim against the tortfeasor.
Accordingly, Cincinnati insists that the separate payments by GEICO to Robert Wehrle of
$100,000 and to Heike Wehrle in the amount of $100,000 reduce its exposure for the accident to
$800,000.

29. Cincinnati’s interpretation of Section D(2) does not comport with the language of its
policy and would produce absurd results. Cincinnati would reduce the aggregate limit by “all
sums payable by or for anyone who is legally responsible” regardless whether it’s insured
received the payment. In the matter at hand, there was a passenger in the drunk driver’s car who
also received $100,000 from GEICO. Employing Cincinnati’s literal reading of Section D(2), its
aggregate coverage would be further reduced to $700,000 due to the fact that $300,000 was paid

out by the person who was legally responsible.


Case: 1:12-cv-00331 Document #: 1-1 Filed: 01/17/12 Page 19 of 65 PagelD #:23

(1) Necessary for the normal op-
eration of the covered “auto” or
the monitoring of the covered
“auto's” operating system; or

(2) An integral part of the same unit
housing any sound reproducing
equipment described in Para-
graph a. above and permanently
installed in the opening of the
dash or console of the covered
“auto” normally used by the
manufacturer for installation of a
radio.

5. We will not pay for “loss” to a covered
“auto” due to "diminution in value”.

C. Limit of Insurance

1. The most we will pay for "loss" in any one
“accident” is the lesser of:

a. The actual cash value of the dam-
aged or stolen property as of the
time of the “loss”; or

b. The cost of repairing or replacing the
damaged or stolen property with
other property of like kind and qual-
ity.

2. An adjustment for depreciation and
physical condition will be made in deter-
mining actual cash value in the event of a
total “loss”.

3. If arepair or replacement results in better
than like kind or quality, we will not pay
for the amount of the betterment.

D. Deductible

For each covered “auto”, our obligation to pay
for, repair, return or replace damaged or sto-
len property will be reduced by the applicable
deductible shown in the Declarations. Any
Comprehensive Coverage deductible shown
in the Declarations does not apply to “loss”
caused by fire or lightning.

SECTION IV - BUSINESS AUTO CONDITIONS

(1) How, when and where the “ac-

The following conditions apply in addition to the
cident" or "loss" occurred;

Common Policy Conditions:

A. Loss Conditions (2) The “insured's" name and ad-

AA 101 03 06

1. Appraisal for Physical Damage Loss

If you and we disagree on the amount of
“loss”, either may demand an appraisal of
the “loss”. In this event, each party will
select a competent appraiser. The two
appraisers will select a competent and
impartial umpire. The appraisers will state
separately the actual cash value and
amount of “loss”. If they fail to agree, they
will submit their differences to the umpire.
A decision agreed to by any two will be
binding. Each party will:

a. Pay its chosen appraiser; and

b. Bear the other expenses of the ap-
praisal and umpire equally.

If we submit to an appraisal, we will still
retain our right to deny the claim.

2. Duties in the Event of Accident, Claim,
Suit or Loss

We have no duly to provide coverage
under this policy unless there has been
full compliance with the following duties:

a. In the event of “accident”, claim,
“suit” or “loss”, you must give us or
our authorized representative prompt
notice of the "accident" or “loss”. In-
clude:

dress; and

(3) To the extent possible, the
names and addresses of any
injured persons and witnesses.

b. Additionally, you and any other in-
volved “insured” must:

(1) Assume no obligation, make no
payment or incur no expense
without our consent, except at
the “insured's” own cost.

(2) Immediately send us copies of
any request, demand, order, no-
tice, summons or legal paper
received conceming the claim or
“suit”.

(3) Cooperate with us in the investi-
gation or settlement of the claim
or defense against the “suit”.

(4) Authorize us to obtain medical
records or other pertinent infor-
mation.

(5) Submit to examination, at our
expense, by physicians of our
choice, as often as we reasona-
bly require.

Includes copyrighted material of Insurance

Services Office, Inc., with its permission.

Page 8 of 14


Case: 1:12-cv-00331 Document #: 1-1 Filed: 01/17/12 Page 9 of 65 PagelD #:13

THE CINCINNATI INSURANCE COMPANY

CINCINNATI, OHIO
BUSINESS AUTO COVERAGE PART DECLARATIONS
1TEM ONE

Attached to and forming part of POLICY NUMBER: CPA 081 39 36 Effective Date: _08-01-2010
Named Insured: IS THE SAME AS IT APPEARS ON THE COMMON POLICY DECLARATIONS

ITEM TWO SCHEDULE OF COVERAGES AND COVERED AUTOS

This coverage part provides only those coverages where a premium or “incl” is shown in the premium column below.
The limit of Insurance for each coverage listed is subject to all applicable policy provisions. Each ol these coverages
will apply only to those “autos” shown as covered “autos”, “Autos” are shown as covered “autos” for a particular
coverage by the entry of one or more of the symbols from lhe COVERED AUTO Section of the Business Auto Coverage
Form next to the name of the coverage.

COVERED AUTOS CIMIT
(Entry of one or more
COVERAGES lof the symbols from the THE MOST WE WILL PAY FOR ANY ONE
COVERED AUTOS. ACCIDENT OR LOSS PREMIUM

[Section of the Business|
Auto Coverage Form
shows which autos are

covered autos}
LIABILITY 1 , {61,000,000 INCL
PERSONAL INJURY PROTECTION [Separately stated in each PP.
(or equivalent No-fault coverage) jendorsement minus $ Ded.
ADDED PERSONAL INJURY [Separately stated in each added P.L.P.
PROTECTION (or equivalent jendorsement
jadded No-fault coverage)
PROPERTY PROTECTION [Separately stated in each P. P.1.
INSURANCE (Michigan only) lendorsement minus $ Ded
lor each accident

AUTO. MEDICAL PAYMENTS.

2 I$ 5,000 INCL
UNINSURED MOTORISTS.

2,859 [$_ 1,000,000 INCL

JUNDERINSURED MOTORISTS
(When not included in 2,8,9 is 1,000,000 INCL
[Uninsured Motorists Coverage)

(Actual cash value or cost of repair,

IPHYSICAL DAMAGE Whichever is less minus $SEE AA218
[COMPREHENSIVE COVERAGE |Ded. For each covered auto. But no
2,8 Deductible applies to loss caused by INCL

Fire or lightning, See Item Three for hired or
borrowed “autos”

[Actual cash value or cost of repair,

PHYSICAL DAMAGE SPECIFIED hichever is less minus $ Ded. For
(CAUSES OF LOSS COVERAGE Each covered auto. For loss caused by mischief
jor vandalism. See Item Three for hired or
borrowed “autos”
PHYSICAL DAMAGE Actual cash value or cost of repair,
[COLLISION COVERAGE 2,8 Whichever is fess minus $SEE AA218 INCL

Ded for each covered auto. See Item
Three for hired or borrowed “autos”.

PHYSICAL DAMAGE INSURANCE
[TOWING AND LABOR is for each disablement of a private
assenger aulo
IPREMIUM FOR ENDORSEMENT:
“ESTIMATED TOTAL PREMIUM INCL
FORMS AND ENDORSEMENTS CONTAINED IN THIS COVERAGE PART AT ITS INCEPTION:
AA218 03706 AA1O1 03706 AAGIZ6IL 06703 APGOLIL 07/795
ICA0270 08794 CPAI3Z1GIL 07795 AAGOGGIL 04701 AAGO45IL 04701
265 04/09 AA4O47IL 03798 AA261 03706

* This policy may be subject to final audit

AA 501 03 06 Servig Page 1 of 2



AA 101 03 06

Case: 1:12-cv-00331 Document #: 1-1 Filed: 01/17/12 Page 25 of 65 PagelD #:29

ous properties” of “nuclear facility” by any
person or organization.

C. Under any Liability Coverage, to “bodily
injury” or “property damage” resulting
from the "hazardous properties” of “nu-
clear material’, if:

(1) The “nuclear material” (a) is at any
“nuclear facility” owned by, or oper-
ated by or on behalf of, an “insured”
or (b) has been discharged or dis-
persed therefrom;

(2) The “nuclear material” is contained in
“spent fuel” or “waste” at any time
possessed, handled, used, proc-
essed, stored, transported or dis-
posed of by or on behalf of an “in-
sured”; or

(3) The "bodily injury” or "property dam-
age” arises out of the furnishing by
an “insured” of services, materials,
parts or equipment in connection
with the planning, construction,
maintenance, operation or use of
any “nuclear facility", but if such fa-
cility is located within the United
States of America, its territories or
possessions or Canada, this Exclu-
sion (3) applies only to “property
damage” to such “nuclear facility”
and any property thereat.

As used in this endorsement:

“Hazardous properties” include radioactive,
toxic or explosive properties;

"Nuclear material” means “source material”,
“special nuclear material” or "byproduct mate-
rial”;

"Source material”, "special nuclear material",
and “byproduct material" have the meanings
given them in the Atomic Energy Act of 1954
or in any law amendatory thereof;

“Spent fuel” means any fuel element or fuel
component, solid or liquid, which has been

used or exposed to radiation in a "nuclear re-
actor";

“Waste” means any waste material (a) con-
taining “byproduct material” other than the
tailings or wastes produced by the extraction
or concentration of uranium or thorium from
any ore processed primarily for its “source
material” content, and (b) resulting from the
operation by any person or organization of
any “nuclear facility” included under the first
two paragraphs of the definition of "nuclear
facility”.

“Nuclear facility” means:

{a) Any “nuclear reactor";

(b) Any equipment or device designed or
used for (1) separating the isotopes of
uranium or plutonium, (2) processing or
utilizing "spent fuel", or (3) handling,
processing or packaging "waste";

(c) Any equipment or device used for the
processing, fabricating or alloying of
“special nuclear material” 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 lo-
cated 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;

(a) Any structure, basin, excavation, prem-
ises or place prepared or used for the
storage or disposal of "waste";

and includes the site on which any of the foregoing
is located, all operations conducted on such site
and all premises used for such operations:

"Nuclear reactor” means any apparatus designed
or used to sustain nuclear fission in a self-
supporting chain reaction or to contain a critical
mass of fissionable material;

“Property damage” includes all forms of radioac-
tive contamination of property.

Includes copyrighted material of Insurance

Services Office, Inc., with its permission. Page 14 of 14


Case: 1:12-cv-00331 Document #: 1-1 Filed: 01/17/12 Page 1 of 65 PagelD #:5

IN THE CIRCUIT COURT OF THE SIXTEENTH JUDICIAL FARE UL re
KANE COUNTY, ILLINOIS

Robert Wehrle and Heike Wehrle,

leo Vv

Plaintiffs,

Case No.
Cincinnati Insurance Company,

)
)
)
)
v. )
)
)
)
Defendant. )

COMPLAINT FOR DECLARATORY JUDGMENT

NOW COMES the Plaintiffs, Robert and Heike Wehrle, by their attorneys, Foote, Meyers,

Mielke and Flowers, LLC, and for their complaint for declaratory judgment against the

Defendant, Cincinnati Insurance Company, state as follows:

NATURE OF THE ACTION

1. This action arises in regard to a dispute concerning the amount of underinsured coverage
available to the Plaintiffs’ under a commercial liability policy issued by Defendant, Cincinnati
Insurance Company (“Cincinnati”).

2. The Plaintiffs, Robert and Heike Wehrle, suffered catastrophic injuries when their 2007
GMC Yukon was struck by a drank driver on December 29, 2010 in unincorporated Kane
County, Illinois.

3. The 2007 GMC Yukon was a covered auto under Cincinnati’s commercial insurance

policy #CPA0813936 (the “Cincinnati Policy”, attached as “Exhibit A”),

NOUICE
4. Each of the Plaintiffs is a covered “insured” under the CincignatyPolicyourt THIS CASE IS HER

SET FOK CASE MANAGEMENT LONFERENG

BEFORE THE ABOVE NAMe|
a
i THE

ON ___

FAILURE 7


Case: 1:12-cv-00331 Document #: 1-1 Filed: 01/17/12 Page 48 of 65 PagelD #:52

QUICK REFERENCE
COMMERCIAL AUTO COVERAGE PART

BUSINESS AUTO COVERAGE FORM
READ YOUR POLICY CAREFULLY

DECLARATIONS PAGES

Named Insured and Mailing Address
Policy Period .

Description of Business

Coverages and Limits of Insurance

SECTION |- COVERED AUTOS Beginning on Page

Description of Covered Auto Designation Symbols
Owned Autos You Acquire After the Policy Begins
Certain Trailers, Mobile Equipment and
Temporary Substitute Autos......

SECTION II - LIABILITY COVERAGE

Coverage.......
Who is an Insured

Coverage Extensions :

supplementary Payments

Out ot State Ne

Exclusions ....

Limit of Insurai

SECTION Ill - PHYSICAL DAMAGE COVERAGE

Coverage...
Exclusions
Limit of Insu:
Deductible

SECTION IV - BUSINESS AUTO CONDITIONS

Loss Conditions
Appraisal for Physical Damage Loss.
Duties in the Event of Accident, Claii
Legal Action Against Us.....
Loss Payment - Physical Ds
Transfer of Rights of Recovery
General Conditions
Bankruptcy... in
Concealment, Misrepresentation or Frau:
Liberalization.
No Benefit to Bailee - Physical Damage Coverages .
Other Insurance
Premium Audit ..
Policy Period, Coverage Territory ..
Two or More Coverage Forms or Policies Issues

SECTION V - DEFINITIONS ...

COMMON POLICY CONDITIONS
Cancellation
Changes
Examination of Your Books and Records
Inspections and Surveys
Premiums
Transfer of Your Rights and Duties under this Policy

ENDORSEMENTS (If Any)

AQeON NV

~WONN

Roainst Other:

Includes copyrighted material of Insurance

AA 501 03 06 Services Office, Inc., with its permission. Page 2 of 2


Case: 1:12-cv-00331 Document #: 1-1 Filed: 01/17/12 Page 12 of 65 PagelD #:16

BUSINESS AUTO COVERAGE FORM

Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties
and what is and is not covered.

Throughout this policy the words “you” and “your” refer to the Named Insured shown in the Declarations. The
words “we”, “us” and “our” refer to the Company providing this insurance.

Other words and phrases that appear in quotation marks have special meaning. Refer to SECTION V -
DEFINITIONS.

SECTION |- COVERED AUTOS

ITEM TWO of the Declarations shows the “autos”
that are covered “autos” for each of your cover-
ages. The following numerical symbols describe
the “autos” that may be covered "autos". The
symbols entered next to a coverage on the Decla-
rations designate the only “autos” that are covered

"autos".
A. Description of Covered Auto Designation
Symbols
SYMBOL DESCRIPTION
1= ANY "AUTO".
2= OWNED “AUTOS” ONLY. Only those

AA 101 03 06

“autos” you own (and for Liability Cover-
age any “trailers” you don’t own while at-
tached to power units you own). This in-
cludes those “autos” you acquire owner-
ship of after the policy begins.

OWNED PRIVATE PASSENGER
"AUTOS" ONLY. Only the private pas-
senger “autos” you own. This includes
those private passenger “autos” you ac-
quire ownership of after the policy begins.

OWNED “AUTOS” OTHER THAN PRI-
VATE PASSENGER "AUTOS" ONLY.
Only those “autos” you own that are not
of the private passenger type (and for Li-
ability Coverage. any “trailers” you don't
own while attached to power units you
own). This includes those “autos” not of
the private passenger type you acquire
ownership of after the policy begins.

OWNED "AUTOS" SUBJECT TO NO-
FAULT. Only those “autos” you own that
are required to have No-Fault benefits in
the state where they are licensed or prin-
cipally garaged. This includes those
"autos" you acquire ownership of after
the policy begins provided they are re-
quired to have No-Fault benefits in the
state where they are licensed or princi-
pally garaged.

OWNED “AUTOS” SUBJECT TO A
COMPULSORY UNINSURED MOTOR-
ISTS LAW. Only those “autos” you own
that because of the law in the state where

they are licensed or principally garaged
are required to have and cannot reject
Uninsured Motorists Coverage. This in-
cludes those “autos” you acquire owner-
ship of after the policy begins provided
they are subject to the same state unin-
sured motorists requirement.

SPECIFICALLY DESCRIBED “AUTOS”.
Only those “autos” described in ITEM
THREE of the Declarations for which a
premium charge is shown (and for Liabil-
ity Coverage any “trailers” you don't own
while attached to a power unit described
in ITEM THREE).

HIRED "AUTOS" ONLY. Only those
“autos” you lease, hire, rent or borrow.
This does not include any “auto” you
lease, hire, rent, or borrow from any of
your “employees” or partners (if you are a
partnership), members (if you are a lim-
ited liability company) or members of their
households.

NONOWNED "AUTOS" ONLY. Only
those "autos" you do not own, lease, hire,
rent or borrow that are used in connec-
tion with your business. This includes
“autos” owned by your “employees",
partners (if you are a partnership), mem-
bers (if you are a limited liability com-
pany), or members of their households
but only while used in your business or
your personal affairs.

Owned Autos You Acquire After the Policy
Begins

1.

If Symbols 1, 2, 3, 4, 5, or 6 are entered
next to a coverage in ITEM TWO of the
Declarations, then you have coverage for
“autos” that you acquire of the type de-
scribed for the remainder of the policy pe-
tiod.

But, if Symbol 7 is entered next to a cov-
erage in ITEM TWO of the Declarations,
an “auto” you acquire will be a covered
“auto” for that coverage only if:

a. We already cover all “autos” that you
own for that coverage or it replaces

Includes copyrighted material of Insurance

Services Office, Inc., with its permission.

Page 1 of 14


Case: 1:12-cv-00331 Document #: 1-1 Filed: 01/17/12 Page 11 of 65 PagelD #:15

Quote: 2044818 Version: 1 Policy: CPA 0813936 Effective Date: 08/01/2010 Rating State: IL

The Cincinnati Insurance Company
Automobile Schedule - Business Auto
Item Three

Attached to and forming a part of Policy Number CPA 0813936 , effective 08/01/2010

The insurance afforded for any automobile is only with respects to such and so many of the coverages as are
indicated by specific premium charge or charges indicated.

POLICY LIMITS
Liability: CSL 1,000,000 UM/UIM: 1,000,000
UMPD: N/A
Medical Payments: 5,000
1.000/1.000
2007 GMC YUKON XL VIN#: 204036 CIN: 64,000 Terr: 134
4 |Class: 02199 OTC Comp Ded: 500 Coll Ded: 500 ZipCode: 60140 Tax: 005187
BI PD MP. OTC COLL UM TOTAL
743 Incl 36 131 336 52 1,298
2007 GMC YUKON VIN#: 249170 CIN: 64,000 Terr: 134
2 |Class: 7391 OTC Comp Ded: 500 Coll Ded: 500 ZipCode: 60140 Tax: 005187
BI PD MP OTC COLL UM TOTAL
502 Incl 20 139 323, 84 1,068
‘~~~ [Business Auto Expanded Coverage (XC)
Class: 9765 Tax: 005187
BI PD | MP OTC COLL UM TOTAL
N/A N/A | N/A 100 N/A N/A 100
Hired and Non Owned # of Employees: 5
Class: 6601 Tax: 005187
BI PD |MP OTC COLL UM TOTAL
32 Incl |N/A NIA NIA 26 58
BI PD MP. OTC COLL UM ] TOTAL
Total} 1,277 Incl Te 370 1659 162 2,524
AA218 03 06

User ID: JBENNET Activity Date: 07/13/2010 Ratebook Date: 03/15/2010 (IL) CA 10f 1


— -~——— Case: 1:12-cv-00331 Document #: 1-1 Filed: 01/17/12 Page 61 of 65 PagelD #:65

. THE CINCINNATI INSURANCE COMPANY
AUTOMOBILE CHANGE ENDORSEMENT

RECD OCT 25 2010

Issued to: RTW FOX VALLEY LLC, EVENTS OF ELEGANCE, RTW MANAGEMENT
INC

Policy No: CPA 0813936

Agency: LUNDSTROM INSURANCE = 12-141

Change Effective: 10/05/2010

it is agreed that the policy is amended as follows:

Return Premium Due Now $878 FLAT CASH ENDORSEMENT

Subsequent Quarterly Installments Decreased by

Revised Automobile Installment Payments 1.000/1.000

First Installment Remaining Installment(s)

The Following item(s) are hereby deleted in their entirety.
2007 GMC YUKON VIN#: 249170 CIN:64,000

2 |Class: 7391 _

BI PD [MP OTC COLL UM TOTAL
502 Incl |20 139 323 84 1,068

Additional interest(s)

Nothing herein contained shall vary, alter, waive, or extend any of the terms, representations, conditions or agreements of the
policy other than as above.

User ID: JBENNET
Activity Date: 10/19/2010 Ratebook: 09/01/2010 (IL) Quote Number: 2112141 Version: 1

AA 407 09 09



——— €ase> t:42-cv-00331 Document #: 1-1 Filed: 01/17/12 Page 44 of 65 PagelD #:48

THE CINCINNATI INSURANCE COMPANY

P.O. BOX 145496, CINCINNATI, OHIO 45250-5496
513-870-2000
A STOCK INSURANCE COMPANY

AUTOMOBILE / GARAGE
RENEWAL CERTIFICATE

ATTACH THIS CERTIFICATE TO YOUR POLICY

POLICY NUMBER RENEWAL DATE EXPIRATION DATE
CPA 081 39 36 08-01-2010 08-01-2011
NAMED INSURED
RTW FOX VALLEY LLC, EVENTS OF ELEGANCE,
RTW MANAGEMENT INC
2500 N RIVER ROAD
N AURORA IL 60542

AGENCY
LUNDSTROM INSURANCE 12-141
ELGIN IL
IN RETURN FOR THE PAYMENT OF THE PREMIUM, AND SUBJECT TO ALL THE TERMS OF THIS POLICY UNLESS OTHERWISE SPECIFIED,

THE ABOVE NUMBERED POLICY IS RENEWED FOR THE TERM SHOWN ABOVE.

: COVERAGE PROVIDED.
AUTOMOBILE - SEE SCHEDULE eae
REFER TO IA102__

FORMS APPLICABLE AT RENEWAL

TA102 09708 AASOL 03706 TA501 05706
[TAX _ID# 005187
NB1 BSO
07-20-2010

Countersigned By
(Date) (Authorized Representative)

AGENT'S COPY

Includes copyrighted material of Insurance
AA 601 05 09 Services Office, Inc., with its permission. Page 1 of 2



AA 4044 IL 04 01

providing coverage on a primary
basis. Our share is the proportion
that our limit of liability bears to the
total of all applicable limits of liabil-
ity for coverage on a primary ba-
sis.

(2) On an excess basis, we will pay
only our share of the loss that
must be paid under insurance
providing coverage on an excess
basis. Our share is the proportion
that our limit of liability bears to the
total of all applicable limits of liabil-
ity for coverage on an excess ba-
‘SIs.

Duties in the Event of Accident, Claim,
Suit or Loss is changed by adding the fol-
lowing:

a. You or any other involved “insured”
must promptly notify the police if a hit-
and-run driver is involved;

b. You or any other involved "insured"
must promptly send us copies of the
legal papers if a “suit” is brought; and

c. You and any other involved “insured”
must cooperate with us in the investi-
gation, settlement or defense of the
claim or "suit". Cooperation includes
identifying all parties who may be re-
sponsible for the “accident” and all in-
surers who may be obligated to pro-
vide coverage.

Transfer of Rights of Recovery Against
Others to Us does not apply.

The following Conditions are added:

If we make any payment and the “insured”
recovers from another party, the “insured”
shall hold the proceeds in trust for us and
pay us back the amount we have paid.

ARBITRATION
A. Ifwe and an “insured” do not agree:

1. Whether that person is legally en-
tiled to recover damages from a
party responsible for the “acci-
dent”; or

2. As to the amount of damages that
are recovered;

the matter may be settled by arbitra-
tion. If the “insured” requests, we and
the “insured” will each select an arbi-
trator.

The two arbitrators will select a third. If
the arbitrators are not selected within
4S days of the insured’s request for ar-
bitration, either party may request that

—————Gase:-1:12-cv-00331 Document #: 1-1 Filed: 01/17/12 Page 32 of 65 PagelD #:36

arbitration be submitted to the Ameri-
can Arbitration Association. Each party
will:

4. Pay the expenses it incurs; and

2. Bear the expenses of the third ar-
bitrator equally.

B. Unless both parties agree otherwise,
arbitration will take place in the county
in which the “insured” lives.

C. If arbitration is submitted to the Ameri-
can Arbitration Association, then the
American Arbitration Association rules
shall apply to all matters except medi-
cal opinions. As to medical opinions, if
the amount of damages being sought:

1. Is equal to or less than the mini-
mum limit for bodily injury liability
specified by the Illinois Safety Re-
sponsibility Law, then the Ameri-
can Arbitration Association rules
shall apply.

2. Exceeds the minimum limit for
bodily injury liability specified by
the Illinois Safety Responsibility
Law, then the rules of evidence
that apply in the circuit court for
placing medical opinions into evi-
dence shall apply.

In all other arbitration proceedings, lo-
cal rules of law as to arbitration proce-
dure and evidence will apply.

D. A decision agreed to by two of the ar-
bitrators will be binding as to:

1. Whether the “insured” is legally
entitled to recover damages from
a party responsible for the “acci-
dent"; and

2. The amount of damages not ex-
ceeding the minimum limit for bod-
ily injury liability specified by the II-
linois Safety Responsibility Law.

F. Additional Definitions

As used in this endorsement:

1.

"Family member" means a natural person
who is related to and is a resident of the
same household as a natural person
shown as a Named Insured in the Declara-
tions of this Coverage Part. Such relation
may be by blood, marriage or adoption and
may include a ward or foster child.

"Motor vehicle” means a self-propelled ve-
hicle designed for use and principally used
‘on public roads, including an automobile,
truck, semi-tractor, motorcycle and bus.
"Motor vehicle” also includes a motor

Includes copyrighted material of ISO

Properties, Inc., with its permission.

Page 3 of 4


- Case: 1:12-cv-00331 Document #: 1-1 Filed: 01/17/12 Page 49 of 65 PagelD #:53

Quote: 2044818 Version: 1 Policy: CPA 0813936 Effective Date: 08/01/2010 Rating State: IL

The Cincinnati Insurance Company
Automobile Schedule - Business Auto
\tem Three

Attached to and forming a part of Policy Number CPA 0813936 , effective 08/01/2010

The insurance afforded for any automobile is only with respects to such and so many of the coverages as are
indicated by specific premium charge or charges indicated.

POLICY LIMITS
Liability: CSL 1,000,000 UM/UIM: 1,000,000
UMPD: N/A
Medical Payments: 5,000
1.000/1.000
2007 GMC YUKON XL VIN#: 204036 CIN: 64,000 Terr: 134
4 |Class: 02199 OTC Comp Ded: 500 Coll Ded: 500 ZipCode: 60140 Tax: 005187
BI PD MP. OTC. COLL UM TOTAL
743 Incl 36 131 336 52 1,298
2007 GMC YUKON VIN#: 249170 CIN: 64,000 Terr: 134
2 |Class: 7391 OTC Comp Ded: 500 Coll Ded: 500 ZipCode: 60140 Tax: 005187
BI PD IMP. OTC. COLL UM TOTAL
[S02 Incl 20 139 323 184 1,068
Business Auto Expanded Coverage (XC)
Class: 9765 Tax: 005187
BI PD | MP OTC COLL UM TOTAL
N/A N/A | N/A 100 N/A N/A 100
Hired and Non Owned # of Employees: 5
Class: 6601 Tax: 005187
BI PD {MP OTC COLL UM TOTAL
32 Incl |N/A N/A N/A 26 58
BI PD MP OTC COLL UM TOTAL
Total | 1,277 inct 56 370 659 162 2,524
AA218 03 06

User ID: JBENNET Activity Date: 07/13/2010 Ratebook Date: 03/15/2010 (IL) CA 10f 1


Case: 1:12-cv-00331 Document #: 1-1 Filed: 01/17/12 Page 31 of 65 PagelD #:35

the Named Insured shown in the Declara-
tions of this Coverage Part.

a. $20,000 for “bodily injury” to any one
person caused by any one "accident",
and

4. Anyone for injuries incurred while “occupy-
ing” a covered “auto” or a temporary sub- b. $40,000 for “bodily injury” to two or
stitute for a covered “auto”. The covered more persons caused by any one “ac-
“auto” must be out of service because of its cident”.
break down, repair, servicing, “loss” or de- : tok , -_
struction. This provision will not change our total limit

of liability.
5. Anyone for damages he or she is entitled to

recover because of “bodily injury" sustained
by another “insured”.

Cc. Exclusions

This insurance does not apply to any of the fol-

No one will be entitled to receive duplicate
payments for the same elements of “loss”
under this Coverage Part and any Liability
Coverage Part, Medical Payments Cover-
age endorsement or Underinsured Motor-
ists Coverage endorsement attached to this

lowing: Coverage Part.
1. Any claim settled without our consent. We will not make a duplicate payment un-
2. The direct or indirect benefit of any insurer der this Coverage Part for any element of
or self-insurer under any personal injury loss" for which payment has been made
protection, workers’ compensation, disabil- by or for anyone who is legally responsible.
ity benefits or similar taw. We will not pay for any element of “loss” if a
3. "Bodily injury” sustained by: person is entitled to receive payment for the
same element of “loss” under any personal
a. You while “occupying” or when struck injury protection, workers’ compensation,
by any vehicle owned by you that is disability benefits or similar law.
not a covered “auto” for Uninsured . ae
Motorists Coverage under this Cover- E. Changes in Conditions
age Part, The Conditions are changed for Uninsured
b. Any “family member” while “occupying” Motorists Insurance Coverage as follows:
By feeayato bh oy ones 4. Other Insurance in the Business Auto and
cevered “auto” for Uninsured Motorists Garagenconeraos! Fome.ond-Other inet
Coverage under this Cove! Part: ance - Primary and Excess Insurance
igeiunder tis: ragem ats Of Provisions in the Truckers and Motor Car-
c. Any “family member” while “occupying” tier Coverage Forms are replaced by the
or when struck by any vehicle owned following:
ry ae es = ieee for soneree If there is other applicable insurance avail-
lotori ae losucn a primary basis able under one or more policies or provi-
| any other Coverage Part or pol- sions of coverage:
: . i Il Cov-
4. Any person while operating or occupying a a chi Forms or policies pelcrckegn as
motor vehicle without reasonable belief that equal but not exceed the highest appli-
he or she is entitled to do so. cable limit for any one vehicle under
5. Punitive or exemplary damages. any Coverage Form or policy providing

D. Limit of Insurance

1

Regardless of the number of covered
“autos”, “insureds”, premiums paid, claims
made or vehicles involved in the "accident",
the most we will pay for all damages re-
sulting from any one “accident” is the Limit
of Insurance for Uninsured Motorists Insur-
ance shown in the Schedule or the Decla-
rations.

We will apply the limit shown in the Decla-
rations to first provide the separate limits
required by the Illinois Safety Responsibility
Law as follows:

coverage on either a primary or excess
basis.

b. Any insurance we provide with respect
to a vehicle you do not own shall be
excess over any other collectible unin-
sured motorists insurance. We will pay
only the amount by which the limit of li-
ability for this Coverage exceeds the
limit of liability of such other coverage.

c. If the coverage under this Coverage
Part is provided:

(1) On a primary basis, we will pay
only our share of the loss that
must be paid under insurance

Includes copyrighted material of ISO

Properties, Inc., with its permission. Page 2 of 4

AA 4044 IL 04 01


Case: 1:12-cv-00331 Document #: 1-1 Filed: 01/17/12 Page 8 of 65 PagelD #:12

previously paid by Cincinnati to the Plaintiffs, that Cincinnati be ordered to pay $200,000 to

Heike Wehrle.

WHEREFORE, the Plaintiffs respectfully seek a judgment which provides:

A. A declaration that the Cincinnati Policy affords coverage on an aggregate basis in the
amount of $1 million.

B. A declaration that the setoff available to Cincinnati for each of the Plaintiff's separate
claims is limited to the $100,000 which they each received from GEICO.

C. A declaration that the total amount payable by Cincinnati to the Plaintiffs is $1 million.

D. Such other and further relief as the court may deem just and proper.

Respectfully Subpfifed:

Keni Ekg Auden Planttls

Craig Mielke

FOOTE MEYERS MIELKE & FLOWERS
3 North Second St., Suite 300

St. Charles, Illinois 60174

Tel: (630) 232-6333

Fax: (630) 232-6597


AA 101 03 06

——_——Gase=:12-cv-00331 Document #: 1-1 Filed: 01/17/12 Page 22 of 65 PagelD #:26

SECTION V - DEFINITIONS

“Accident” includes continuous or repeated
exposure to the same conditions resulting in
"bodily injury” or "property damage”.

“Auto” means:

1. A land motor vehicle, “trailer” or semi-
trailer designed for travel on public roads;
or

2. Any other land vehicle that is subject to a
compulsory or financial responsibility law
or other motor vehicle insurance law
where it is licensed or principally ga-
raged.

However, “auto” does not include “mobile
equipment”.

“Bodily injury” means bodily injury, sickness or
disease sustained by a person including
death resulting from any of these.

“Covered pollution cost or expense” means
any cost or expense arising out of:

1. Any request, demand, order or statutory
or regulatory requirement that the “in-
sured” or others test for, monitor, clean
up, remove, contain, treat, detoxify or
neutralize, or in any way respond to, or
assess the effects of "pollutants"; or

2. Any claim or “suit” by or on behalf of a
governmental authority for damages be-
cause of testing for, monitoring, cleaning
up, removing, containing, treating, de-
toxifying or neutralizing, or in any way re-
sponding to, or assessing the effects of
“pollutants”.

“Covered pollution cost or expense” does not
include any cost or expense arising out of the
actual, alleged or threatened discharge, dis-
persal, seepage, migration, release, escape
or emission of “pollutants”:

a. Thatare, or that are contained in any
property that is:

(1) Being transported or towed by,
handled, or handled for move-
ment into, onto or from the cov-
ered “auto”;

(2) Otherwise in the course of tran-
sit by or on behalf of the “in-
sured”;

(3) Being stored, disposed of,
treated or processed in or upon
the covered "auto"; or

b. Before the “pollutants” or any prop-
erty in which the “pollutants” are
contained are moved from the place

where they are accepted by the “in-
sured" for movement into or onto the
covered “auto”; or

c. After the “pollutants” or any property
in which the “pollutants” are con-
tained are moved from the covered
“auto” to the place where they are fi-
nally delivered, disposed of or aban-
doned by the "insured".

Paragraph a. above does not apply to fu-
els, lubricants, fluids, exhaust gases or
other similar “pollutants” that are needed
for or result from the normal electrical,
hydraulic or mechanical functioning of the
covered “auto” or its parts, if:

(1) The “pollutants” escape, seep,
migrate, or are discharged, dis-
persed or released directly from
an “auto” part designed by its
manufacturer to hold, store, re-
ceive or dispose of such “pollut-
ants"; and

(2) The “bodily injury", “property
damage” or “covered pollution
cost or expense” does not arise
out of the operation of any
equipment listed in Paragraphs
6.b. or 6.c. of the definition of
“mobile equipment”.

Paragraphs b. and c. above do not apply
to “accidents” that occur away from
premises owned by or rented to an “in-
sured" with respect to “pollutants” not in
or upon a covered “auto” if:

(1) The “pollutants” or any property
in which the “pollutants” are
contained are upset, overturned
or damaged as a result of the
maintenance or use of a cov-
ered “auto”; and

(2) The discharge, dispersal, seep-
age, migration, release, escape
or emission of the “pollutants” is
caused directly by such upset,
overturn or damage.

“Diminution in value” means the actual or per-
ceived loss in market value or resale value
which results from a direct and accidental
"loss".

“Employee” includes a “leased worker". “Em-
ployee” does not include a “temporary
worker".

“Insured” means any person or organization
qualifying as an insured in the Who is an In-
sured provision of the applicable coverage.

Includes copyrighted material of Insurance

Services Office, Inc., with its permission.

Page 11 of 14


Case: 1:12-cv-00331 Document #: 1-1 Filed: 01/17/12 Page 59 of 65 PagelD #:63

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

AUTO MEDICAL PAYMENTS COVERAGE

Throughout this Coverage Form "you" and “your” refer to the organization and any specifically named natural
persons shown as the Named Insured in the Business Auto or Garage Coverage Part Declarations. “You”
and "Your" do not refer to any other persons or organizations, including but not limited to agents, employees,
servants, members, shareholders or independent contractors of any person or organization shown as the
Named Insured in the Business Auto or Garage Coverage Part Declarations.

This endorsement modifies insurance provided under the following:

BUSINESS AUTO COVERAGE FORM
GARAGE COVERAGE FORM

With respect to coverage provided by this endorsement, the provisions of the Coverage Form apply unless
modified by the endorsement.

4.

owned by or fumished or available for the
regular use of any “family member".

“Bodily injury” to your “employee” arising
out of and in the course of employment by
you. However, we will cover "bodily injury”
to your domestic “employees” if not entitled
to workers’ compensation benefits. For the
purposes of this endorsement, a domestic
“employee” is a person engaged in house-
hold or domestic work performed principally
in connection with a residence premises.

"Bodily injury” to an “insured” while working
in a business of selling, servicing, repairing
or parking “autos” unless that business is
yours.

"Bodily injury" arising directly or indirectly
out of:

a. War, including undeclared or civil war;

b. Warlike action by a military force, in-
cluding action in hindering or defend-
ing against an actual or expected at-
tack, by any government, sovereign or
other authority using military personnel
or other agents; or

c. Insurrection, rebellion, —_ revolution,
usurped power, or action taken by
governmental authority in hindering or
defending against any of these.

“Bodily injury" to anyone using a vehicle
without a reasonable belief that the person
is entitled to do so.

“Bodily injury” sustained by an “insured”
while “occupying” any covered “auto” while
used in any professional racing or demoli-
tion contest or stunting activity, or while
practicing for such contest or activity. This
insurance also does not apply to any "bod-
ily injury” sustained by an “insured” while

Includes copyrighted material of Insurance

A. Coverage

We will pay reasonable expenses incurred for

necessary medical and funeral services to or for

an “insured” who sustains “bodily injury” caused
by “accident”. We will pay only those expenses
incurred, for services rendered within three
years from the date of the "accident".

B. Whois an Insured

1. You while “occupying” or, while a pedes-
trian, when struck by any “auto”.

2. "Family members" of natural persons
shown as Named Insureds in the Business
Auto or Garage Coverage Part Declarations
while “occupying” or, while a pedestrian,
when struck by any “auto”.

3. Anyone for injuries while “occupying” a
covered “auto”.

4. Anyone for injuries while “occupying” a
temporary substitute for a covered “auto”,
The covered “auto” must be out of service
because of its breakdown, repair, servicing,
loss or destruction.

C. Exclusions

This insurance does not apply to any of the fol-

lowing:

1. "Bodily injury” sustained by an “insured”
while “occupying” a vehicle located for use
as a premises.

2. “Bodily injury” sustained by you or any
"family member” while “occupying” or struck
by any vehicle (other than a covered
“auto”) owned by or furnished or available
for your regular use.

3. “Bodily injury” sustained by any "family
member” while “occupying” or struck by
any vehicle {other than a covered “auto”)

AA 261 03 06

Services Office, Inc., with its permission.

Page 1 of 2


AA 265 04 09

Case: 1:12-cv-00331 Document #: 1-1 Filed: 01/17/12 Page 39 of 65 PagelD #:43

3. Hired Auto - Physical Damage coverage
is excess over any other collectible insur-
ance.

4. Subject to the above limit, deductible, and
excess provisions we will provide cover-
age equal to the broadest coverage ap-
plicable to any covered "auto" you own of
the private passenger type or light truck
type insured under this policy.

Coverage includes loss of use of that hired
auto, provided it results from an “accident” for
which you are legally liable and as a result of
which a monetary loss is sustained by the
leasing or rental concern. The most we will
pay for any one "accident" is $1,000.

If a limit for Hired Auto - Physical Damage is
shown in the Schedule, then that limit re-
places, and is not added to, the $35,000 limit
indicated above.

Rental Reimbursement

SECTION Ill - PHYSICAL DAMAGE is
amended by adding the following:

1. We will pay for rental reimbursement ex-
penses incurred by you for the rental of a
private passenger type “auto” because of
a “loss” to a covered private passenger
type “auto”. Payment applies in addition
to the otherwise applicable amount of
each coverage you have on a covered
private passenger type "auto". No de-
ductible applies to this coverage.

2. We will pay only for those expenses in-
curred during the policy period beginning
24 hours after the “loss” and ending, re-
gardless of the policy's expiration, with
the lesser of the following number of
days:

a. The number of days reasonably re-
quired to repair the covered private
passenger type “auto”. If “loss” is
caused by theft, this number of days
is added to the number of days it
takes to locate the covered private
passenger type “auto” and return it
to you; or

b. 30 days.

-3. Our paymentis limited to the lesser of the
following amounts:

a. Necessary and actual expenses in-
curred; or

b. $40 per day.

4. This coverage does not apply while there
are spare or reserve private passenger

type "autos" available to you for your op-
erations.

5. We will pay under this coverage only that
amount of your rental reimbursement ex-
penses which is not already provided for
under SECTION Ill - PHYSICAL DAM-
AGE COVERAGE, A. Coverage, 4. Cov-
erage Extensions.

Transportation Expense - Higher Limits

SECTION Ill - PHYSICAL DAMAGE COVER-
AGE, A. Coverage, 4. Coverage Extensions
is amended by replacing $20 per day with $50
per day, and $600 maximum with $1,500
maximum in Extension a. Transportation
Expenses,

Airbag Coverage

SECTION Ill - PHYSICAL DAMAGE COVER-
AGE, B. Exclusions, 3.a. is amended by
adding the following:

However, the mechanical and electrical
breakdown portion of this exclusion does not
apply to the accidental discharge of an airbag.
This coverage for airbags is excess over any
other collectible insurance or warranty.

Loan or Lease Gap Coverage

1. SECTION Il} - PHYSICAL DAMAGE
COVERAGE, C. Limit of Insurance is
deleted in its entirety and replaced by the
following, but only for private passenger
type “autos” with an original loan or
lease, and only in the event of a “total
loss" to such a private passenger type
“auto”:

a. The most we will pay for “loss” in any
one “accident” is the greater of:

(1) The amount due under the
terms of the lease or loan to
which your covered private pas-
senger type “auto” is subject,
but will not include:

(a) Overdue lease or loan
payments;

(b) Financial penalties imposed
under the lease due to high
mileage, excessive use or
abnormal wear and tear;

(c) Security deposits not re-
funded by the lessor;

(d) Costs for extended warran-
ties, Credit Life Insurance,
Health, Accident or Disabil-
ity Insurance purchased
with the loan or lease; and

Includes copyrighted material of ISO

Properties, Inc., with its permission. Page 2 of 3


AA 265 04 09

(e) Carry-over balances from
previous loans or leases, or

(2) Actual cash value of the stolen
or damaged property.

b. An adjustment for depreciation and
physical condition will be made in
determining actual cash value at the
time of “loss”.

2. SECTION V - DEFINITIONS is amended
by adding the following, but only for the
purposes of this Loan or Lease Gap
Coverage:

"Total loss" means a “loss” in which the
cost of repairs plus the salvage value ex-
ceeds the actual cash value.

Glass Repair - Waiver of Deductible

SECTION Ill - PHYSICAL DAMAGE COVER-
AGE, D. Deductible is amended by adding
the following:

No deductible applies to glass damage if the
glass is repaired in a manner acceptable to us
rather than replaced.

Duties in the Event of an Accident, Claim,
Suit or Loss - Amended

SECTION IV - BUSINESS AUTO CONDI-
TIONS, A. Loss Conditions, 2. Duties in the
Event of Accident, Claim, Suit or Loss, a. is
amended by adding the following:

Case: 1:12-cv-00331 Document #: 1-1 Filed: 01/17/12 Page 40 of 65 PagelD #:44

This condition applies only when the “acci-
dent” or “loss” is known to:

4. You, if you are an individual;
2. Apartner, if you are a partnership;

3. An executive officer or insurance man-
ager, if you are a corporation; or

4. Amember or manager, if you are a lim-
ited liability company.

Unintentional Failure to Disclose Hazards

SECTION IV - BUSINESS AUTO CONDI-
TIONS, B. General Conditions is amended
by adding the following:

if you unintentionally fail to disclose any haz-
ards existing on the effective date of this Cov-
erage Form, we will not deny coverage under
this Coverage Form because of such failure.

Mental Anguish Resulting from Bodily In-
jury

SECTION V - DEFINITIONS, C. "Bodily in-
jury” is deleted in its entirety and replaced by
the following:

"Bodily injury" means bodily injury, sickness or
disease sustained by a person, including
mental anguish and death sustained by the
same person that results from such bodily in-
jury, sickness or disease. "Bodily injury” does
not include mental anguish or death that does
not result from bodily injury, sickness or dis-
ease.

Includes copyrighted material of ISO

Properties, Inc., with its permission. Page 3 of 3


€ase:t:42-cv-00331 Document #: 1-1 Filed: 01/17/12 Page 55 of 65 PagelD #:59

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

ILLINOIS UNDERINSURED MOTORISTS COVERAGE

Throughout this Coverage Part "you" and “your” refer to the organizations and natural persons shown as a
Named Insured in the Declarations of this Coverage Part. "You" and "your" do not refer to any other persons
or organizations, including but not limited to agents, employees, servants, members, shareholders or inde-
pendent contractors of any person or organization shown as a Named insured in the Declarations of this
Coverage Part.

For a covered “auto” licensed or principally garaged in, or “garage operations” conducted in, Illinois, this en-
dorsement modifies insurance provided under the following:

BUSINESS AUTO COVERAGE FORM
GARAGE COVERAGE FORM

MOTOR CARRIER COVERAGE FORM
TRUCKERS COVERAGE FORM

With respect to coverage provided by this endorsement, the provisions of the Coverage Part apply unless
modified by the endorsement.

This endorsement changes the policy effective on the inception date of the Coverage Part unless another
date is indicated below.

Policy Number:
CPA 081 39 36

Endorsement Effective:
08-01-2010

Named Insured:

RTW FOX VALLEY LLC, EVENTS OF ELEGANCE, RTW MANAGEMENT INC

Countersigned by:

(Authorized Representative)
SCHEDULE

Limit of Liability

$ Each Accident

(If no entry appears above, information required to complete this endorsement will be shown in the Declara-
tions as applicable to this endorsement.)

With respect to coverage provided by this endorse- a. We have been given prompt written
ment, the provisions of the Coverage Form apply notice of a “tentative settlement” and
unless modified by the endorsement. decide to advance payment to the “in-
sured” in an amount equal to that
“tentative settlement” within 30 days

1. We will pay all sums the “insured” is legally after receipt of notification, or

entitled to recover as compensatory dam- b. We and an “insured” have reached a
ages from the owner or operator of an “un- “settlement agreement’.
derinsured motor vehicle". The damages

A. Coverage

must result from "bodily injury” sustained by 3. Any judgment for damages arising out of a

the “insured” caused by an “accident”. The
owner's or operator's liability for these

“suit” brought without written notice to us is
not binding on us.

damages must result from the ownership,
maintenance or use of the “underinsured
motor vehicle”.

B. Who is an Insured

The following are insureds:

2. We will pay only after all liability bonds or 4. You are an “insured”. However, if you are

AA 4045 IL 04 01

policies have been partially or fully ex-
hausted by judgments or payments, unless:

not a natural person, you are an “insured”
only for purposes of selecting limits of Un-
derinsured Motorists Coverage or execut-

Includes copyrighted material of ISO

Properties, Inc., with its permission.

Page 1 of 4


————€ase: 1:12-cv-00331 Document #: 1-1 Filed: 01/17/12 Page 28 of 65 PagelD #:32

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
ILLINOIS CHANGES - CANCELLATION AND NONRENEWAL

This endorsement modifies insurance provided under the following:

BUSINESS AUTO COVERAGE FORM
BUSINESS AUTO PHYSICAL DAMAGE COVERAGE FORM
GARAGE COVERAGE FORM

MOTOR CARRIER COVERAGE FORM
TRUCKERS COVERAGE FORM

With respect to coverage provided by this endorsement, the provisions of the Coverage Form apply unless
modified by the endorsement.

A. The Cancellation Common Policy Condition is
replaced by the following:

CANCELLATION

a

CA 02 70 08 94

The first Named Insured shown in the Dec-
larations may cancel this policy by mailing
us advance written notice of cancellation.

When this policy is in effect 61 days or more
or is a renewal or continuation policy, we
may cancel only for one or more of the fol-
lowing reasons by mailing you written notice
of cancellation stating the reasons for can-
cellation.

(1) Nonpayment of premium.

(2) The policy was obtained through a ma-
terial misrepresentation.

(3) Any “insured” has violated any of the
terms and conditions of the policy.

(4) The risk originally accepted has
measurably increased.

(5) Certification to the Director of Insur-
ance of the loss of reinsurance by the
insurer which provided coverage to us
for all or a substantial part of the
underlying risk insured.

(6) A determination by the Director of In-
surance that the continuation of the
policy could place us in violation of the
Illinois insurance laws.

If we cancel for nonpayment of premium,
we will mail you at least 10 days written no-
tice.

If this policy is cancelled for other than non-
payment of premium and the policy is in ef-
fect:

(1) 60 days or less, we will mail you at
least 30 days written notice.

(2) 61 days or more, we will mail you at
least 60 days written notice.

e. If this policy in cancelled, we will send you
any premium refund due. If we cancel, the
refund will be pro rata. If you cancel, the re-
fund may be less than pro rata. The can-
cellation will be effective even if we have not
made or offered a refund.

t. The effective date of cancellation stated in
the notice shall become the end of the pol-
icy period.

g- Our notice of cancellation will state the rea-
son for cancellation.

fh. Acopy of the notice will also be sent to your
agent or broker and the loss payee.

The following is added and supersedes any pro-
vision to the contrary:

NONRENEWAL,

If we decide not to renew or continue this policy,
we will mail you, your agent or broker and the
loss payee written notice, stating the reason for
nonrenewal, at least 60 days before the end of
the policy period. If we offer to renew or con-
tinue and you do not accept, this policy will ter-
minate at the end of the current policy périod.
Failure to pay the required renewal or continua-
tion premium when due shall mean that you
have not accepted our offer.

{f we fail to mail proper written notice of non-
renewal and you obtain other insurance, this
policy will end on the effective date of that insur-
ance.

Mailing of Notices

We will mail cancellation and nonrenewal no-
tices to the last addresses known to us. Proof
of mailing will be sufficient proof of notice.

Copyright, Insurance Services Office, Inc., 1994


Case: 1:12-cv-00331 Document #: 1-1 Filed: 01/17/12 Page 58 of 65 PagelD #:62

the matter may be settled by arbi-
tration. However, disputes con-
cerning coverage under this en-
dorsement may not be arbitrated.

The “insured” and we, however,
must mutually agree to arbitrate
the disagreements. If the “in-
sured” and we do not agree to ar-
bitrate, then the disagreement will
be resolved in a court of compe-
tent jurisdiction.

If arbitration is used, each party
will select an arbitrator. The two
arbitrators will select a third. If
they cannot agree within 45 days
as to the third arbitrator, either
may request that selection be
made by a judge of a court having
jurisdiction.

Each party will:

1. Pay the expenses it incurs;
and

2. Bear the expenses of the third
arbitrator equally.

b. Unless both parties agree otherwise,
arbitration will take place in the county
in which the “insured” lives. Local
rules of law as to procedure and evi-
dence will apply. A decision agreed to
by two of the arbitrators will be bindin-
gas to:

1. Whether the "insured" is legally
entitled to recover damages from
a party responsible for the “acci-
dent”; and

2. The amount of damages.

F. Additional Definitions

As used in this endorsement:

1.

AA 4045 IL 04 01

“Family member" means a natural person
who is related to and is a resident of the
same household as a_ natural person
shown as a Named Insured in the Declara-
tions of this Coverage Part. Such relation
may be by blood, marriage or adoption,
and may include a ward or foster child.

“Motor vehicle” means a self-propelled ve-
hicle designed for use and principally used
on public roads, including an automobile,
truck, semi-tractor, motorcycle and bus.
“Motor vehicle" also includes a motor
home, provided the motor home is not sta-

tionary and is not being used as a tempo-
rary orf permanent residence or office.
“Motor vehicle” does not include a trolley,
streetcar, “trailer”, railroad engine, railroad
car, motorized bicycle, golf cart, off-road
recreational vehicle, snowmobile, fork lift,
aircraft, watercraft, construction equipment,
farm tractor or other vehicle designed and
principally used for agricultural purposes,
mobile home, vehicle traveling on treads or
rails or any similar vehicle.

“Occupying” means in, upon, getting in, on,
out or off.

"Settlement agreement” means we and an
"insured" agree that the “insured” is legally
entitled to recover, from the owner or op-
erator of the “underinsured motor vehicle",
damages for “bodily injury" and, without ar-
bitration, agree also as to the amount of
damages. Such agreement is final and
binding regardless of any subsequent
judgment or settlement reached by the “in-
sured” with the owner or operator of the
“underinsured motor vehicle”.

"Tentative settlement” means an offer from
the owner or operator of the “underinsured
motor vehicle” to compensate an “insured”
for damages incurred because of "bodily
injury" sustained in an accident involving an
“underinsured motor vehicle”.

“Underinsured motor vehicle” means a
“motor vehicle" for which the sum of the
limits of coverage available for payment to
the “insured” under all liability bonds or
policies covering person(s) or organiza-
tion(s) liabile to the “insured” at the time of
an “accident” are less than the Limit of In-
surance available for payment to the “in-
sured” under this coverage. However, "un-
derinsured motor vehicle” does not include
any vehicle:

a. Owned or operated by any self-insurer
under any applicable motor vehicle
law.

b. Owned by a governmental unit or
agency.

c. Designed for use mainly off public
toads while not on public roads.

d. Which is an “uninsured motor vehicle”.

e. Owned by or fumished or available for
your regular use or that of any “family
member” or any other “insured”.

Includes copyrighted material of ISO

Properties, Inc., with its permission.

Page 4 of 4


Case: 1:12-cv-00331 Document #: 1-1 Filed: 01/17/12 Page 4 of 65 PagelD #:8

18. Cincinnati Policy’s reference to “coverage”, in the perspective of an individual insured’s
claim, is further bolstered by its definition of what constitutes an “underinsured motor vehicle”:

a ‘motor vehicle’ for which the sum of the limits of coverage available for payment to the

“insured” under all liability bonds or policies covering person(s) or organization(s) liable to

the “insured” at the time of an “accident” are less than the Limit of Insurance available for

payment to the “insured” under this coverage.*

19. In the matter at hand, Cincinnati’s definition of “coverage” as applied to the undisputed
damages suffered by the Plaintiffs (and without reference to any aggregate “per occurrence”
limitations), affords Robert Wehrle underinsured “coverage” in the amount $650,000.00; and
affords Heike Wehrle underinsured “coverage” in the amount of $1.4 million.

20. Section D of the Underinsured Endorsement is titled “Limit of Insurance” and its
interpretation is at the heart of the parties’ controversy. Section D(1) provides limitations as to
the most Cincinnati will pay in the aggregate in a single occurrence involving multiple claims.
Sections D(2), D(3) and D(4) provide reductions as to what Cincinnati will pay in regard to the
claim of an individual insured.

21. Section D(1) limits Cincinnati’s aggregate “per occurrence” exposure to $1 million as set
forth in the Declaration, regardless of the number of insureds who make a claim:

Regardless of the number of covered “autos”, “insureds”, premiums paid, claims made or

vehicles involved in the “accident”, the most we will pay for all damages resulting from any

one “accident” is the Limit of Insurance for Underinsured Motorists Coverage shown in the

Schedule or the Declarations.*

22. Section D(1) limits Cincinnati’s total exposure by preventing a multiplication of its $1

million of coverage afforded on a ‘per person’ basis to an individual insured. Accordingly, in

“ See page 4 of the Underinsured Endorsement referenced as Exhibit A-1
* See page 2 of the Underinsured Endorsement referenced as Exhibit A-1.


Case: 1:12-cv-00331 Document #: 1-1 Filed: 01/17/12 Page 47 of 65 PagelD #:51

THE CINCINNATI INSURANCE COMPANY

CINCINNATI, OHIO

BUSINESS AUTO COVERAGE PART DECLARATIONS
TTEM ONE

Attached to and forming part of POLICY NUMBER: {PA 081 39 36 _— Effective Date: + _08-01-2010
Named Insured: IS THE SAME AS IT APPEARS ON THE COMMON POLICY DECLARATIONS

TTEM TWO SCHEDULE OF COVERAGES AND COVERED AUTOS

This coverage part provides only those coverages where a premium or “incl” is shown in the premium column below.
The limit of Insurance for each coverage listed is subject to all applicable policy provisions. Each of these coverages
will apply only to those “autos” shown as covered “autos”. “Autos” are shown as covered “autos” for a particular
coverage by the entry of one or more of the symbols from the COVERED AUTO Section of the Business Auto Coverage
Form next to the name of the coverage.

COVERED AUTOS LIMIT
(Entry of one or more
COVERAGES, lof the symbols from the THE MOST WE WILL PAY FOR ANY ONE
COVERED AUTOS ACCIDENT OR LOSS PREMIUM

Section of the Business|
Auto Coverage Form
shows which autos are.
covered autos)

LIABILITY 1 I$ 1,000,000 INCL
IPERSONAL INJURY PROTECTION [Separately stated in each P.LP.
(or equivalent No-fault coverage) lendorsement minus $ Ded.
ADDED PERSONAL INJURY [Separately stated in each added P.L-P.
IPROTECTION (or equivalent lendorsement
fadded No-fault coverage)
IPROPERTY PROTECTION separately stated in each P. PI.
INSURANCE (Michigan only) ndorsement minus $ Ded
lor each accident

AUTO. MEDICAL PAYMENTS

2 Is 5,000 INCL
UNINSURED MOTORISTS.

2,8,9 i$ 1,000,000 INCL
JUNDERINSURED MOTORISTS
(When not included in 2,859 I$ 1,000,000 INCL

Uninsured Motorists Coverage)

(Actual cash value or cost of repair,

PHYSICAL DAMAGE |Whichever is less minus $SEE AA218
{COMPREHENSIVE COVERAGE Ded. For each covered auto. But no
2,8 Deductible applies to loss caused by INCL

Fire or lightning. See Item Three for hired or
borrowed “autos”

Actual cash value or cost of repair,

PHYSICAL DAMAGE SPECIFIED |Whichever is less minus $ Ded. For
CAUSES OF LOSS COVERAGE Each covered auto. For loss caused by mischiet
vandalism. See Item Three for hired or
borrowed “autos”
IPHYSICAL DAMAGE. Actual cash value or cost of repair,
COLLISION COVERAGE 2,8 Whichever is less minus $SEE AA218 INCL

Ded for each covered auto. See Item
|Three for hired or borrowed “autos”.

IPHYSICAL DAMAGE INSURANCE
TOWING AND LABOR ie for each disablement of a private
ssenger auto
IPREMIUM FOR ENDORSEMENTS
“ESTIMATED TOTAL PREMIUM INCL
IFORMS AND ENDORSEMENTS CONTAINED IN THIS COVERAGE PART AT ITS INCEPTION:
JAAZ18 03706 AA101 03706 AAGI36IL 06703 AP4O1IL 07795
ICA0270 08/94 CPAIZ1GIL 07795 AAGO4GGIL 04701 AAGOG5IL 04701
265 04709 AAGOGTIL 03798 AA261 03706

* This policy may be subject to final audit

Includes copyrighted material of Insurance
AA 501 03 06 Services Office, Inc., with its permission. Page 1 of 2


Case: 1:12-cv-00331 Document #: 1-1 Filed: 01/17/12 Page 45 of 65 PagelD #:49

COMMON POLICY CONDITIONS .

All Coverage Parts included in this policy are subject
to the following conditions.

A. CANCELLATION

D.

AA 601 05 09

1. The first Named insured shown in the Dec-
larations may cancel this policy by mailing
or delivering to us advance written notice of
cancellation.

2. We may cancel this policy by mailing or de-
livering to the first Named Insured written
notice of cancellation at least:

a. 10 days before the effective date of
cancellation if we cancel for nonpay-
ment of premium; or

b. 30 days before the effective date of
cancellation if we cancel for any other
teason.

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. The refund will be pro rata. The can-
cellation 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.

CHANGES

This policy contains all the agreements between
you and us concerning the insurance afforded.
The first Named Insured shown in the Declara-
tions is authorized to make changes in the
terms of this policy with our consent. This pol-
icy's terms can be amended or waived only by
endorsement issued by us and made a part of
this policy.

EXAMINATION OF YOUR BOOKS AND REC-
ORDS

We may examine and audit your books and re-
cords as they relate to this policy at any time
during the policy period and up to three years
afterward.

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 inspec-
tions, surveys, reports or recommendations
and any such actions we do undertake re-
late only to insurability and the premiums to
be charged. We do not make safety in-
spections. 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, advi-
sory, rate service or similar organization
which makes insurance inspections, sur-
veys, reports or recommendations.

4, Paragraph 2. of this condition does not ap-
ply to any inspections, surveys, reports or
recommendations we may make relative to
certification, under state or municipal stat-
utes, ordinances or regulations, of boilers,
pressure vessels or elevators.

E. PREMIUMS

F.

The first Named Insured shown in the Declara-
tions:

1. |s responsible for the payment of all premi-
ums; and

2. Will be the payee for any retum premiums
we pay.

TRANSFER OF YOUR RIGHTS AND DUTIES
UNDER THIS POLICY

Your rights and duties under this policy may not
be transferred without our written consent ex-
cept in the case of death of an individual named
insured.

If you die, your rights and duties will be trans-
ferred 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.

Includes copyrighted material of Insurance

Services Office, inc., with its permission.

Page 2 of 2


AA 101 03 06

Case: 1:12-cv-00331 Document #: 1-1 Filed: 01/17/12 Page 15 of 65 PagelD #:19

But this exclusion does not apply to "bod-
ily injury" to domestic “employees” not
entitled to workers’ compensation bene-
fits or to liability assumed by the “insured”
under an “insured contract” other than a
contract or agreement with a labor leas-
ing firm. For the purposes of the Cover-
age Form, a domestic “employee” is a
person engaged in household or domes-
tic work performed principally in connec-
tion with a residence premises.

Fellow Employee

“Bodily injury" to any fellow "employee" of
the “insured” arising out of and in the
course of the fellow “employee's” em-
ployment or while performing duties re-
lated to the conduct of your business.

Care, Custody or Control

“Property damage” to or “covered pollu-
tion cost or expense” involving property
owned or transported by the “insured” or
in the “insured’s” care, custody or control.
But this exclusion does not apply to liabil-
ity assumed under a sidetrack agree-
ment.

Handling of Property

“Bodily injury" or “property damage” re-
sulting from the handling of property:

a. Before it is moved from the place
where it is accepted by the “insured”
for movement into or onto the cov-
ered “auto”; or

b. After it is moved from the covered
"auto" to the place where it is finally
delivered by the “insured”.

Movement of Property by Mechanical
Device

“Bodily injury” or “property damage” re-
sulting from the movement of property by
a mechanical device (other than a hand
truck) unless the device is attached to the
covered “auto”.

Operations

“Bodily injury” or “property damage” aris-
ing out of the operation of:

a. Any equipment listed in Paragraphs
6.b. and 6.c. of the definition of "mo-
bile equipment’; or

b. Machinery or equipment that is on,
attached to, or part of, a land vehicle
that would qualify under the definition
of “mobile equipment" if it were not
subject to a compulsory or financial
responsibility law or other motor ve-

hicle insurance law where it is li-
censed or principally garaged.

10. Completed Operations

1.

“Bodily injury” or "property damage” aris-
ing out of your work after that work has
been completed or abandoned.

In this exclusion, your work means:

a. Work or operations performed by
you or on your behalf; and

b. Materials, parts or equipment fur-
nished in connection with such work
or operations.

Your work includes warranties or repre-
sentations made at any time with respect
to the fitness, quality, durability or per-
formance of any of the items included in
Paragraphs a. or b. above.

Your work will be deemed completed at
the earliest of the following times:

(1) When all of the work called for in
your contract has been com-
pleted.

(2) 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.

(3) When that part of the work done
at a job site has been put to its
intended use by any person or
organization other than another
contractor or subcontractor
working on the same project.

Work that may need service, mainte-
nance, correction, repair or replacement,
but which is otherwise complete, will be
treated as completed.

Pollutant

“Bodily injury” or “property damage" aris-
ing out of the actual, alleged or threat-
ened discharge, dispersal, seepage, mi-
gration, release, escape or emission of
“pollutants”:

a. Thatare, or that are contained in any
property that is:

(1) Being transported or towed by,
handled, or handled for move-
ment into, onto or from, the cov-
ered “auto”;

(2) Otherwise in the course of tran-
sit by or on behalf of the ‘in-
sured”; or

Includes copyrighted material of Insurance

Services Office, Inc., with its permission.

Page 4 of 14


AA 4045 IL 04 01

limit of liability for the Coverage ex-
ceeds the limit of liability of such other
insurance.

c. If the coverage under this Coverage
Partis provided:

(1) On a primary basis, we will pay
only our share of the loss that
must be paid under insurance
providing coverage on a primary
basis. Our share is the proportion
that our limit of liability bears to the
total of all applicable limits of liabil-
ity for coverage on a primary ba-
sis.

(2) On an excess basis, we will pay
only our share of the loss that
must be paid under insurance
providing coverage on an excess
basis. Our share is the proportion
that our limit of liability bears to the
total of all applicable limits of liabil-
ity for coverage on an excess ba-
sis.

2. Duties in the Event of Accident, Claim,

Suit or Loss is changed by adding the fol-
lowing:

a. Give us written notice of a "tentative
settlement” and allow us 30 days to
advance payment in an amount equal
to that settlement within 30 days after
receipt of notification to preserve our
rights against the owner or operator of
the “underinsured motor vehicle";

b. File "suit" against the owner or opera-
tor of the "underinsured motor vehicle”
prior to the conclusion of a “settlement
agreement”. Such “suit” cannot be
abandoned or settled without giving us
written notice of a “tentative settle-
ment” and allowing us 30 days to ad-
vance payment in an amount equal! to
that settlement to preserve our rights
against the owner or operator of the
“underinsured motor vehicle”; .

ce. You or any other involved “insured”
must promptly notify the police if a hit-
and-run driver is involved; and

d. You or any other involved “insured”
must promptly send us copies of the
legal papers if a “suit” is brought.

e. You and any other involved “insured”
must cooperate with us in the investi-
gation, settlement or defense of the
claim or “suit”. Cooperation includes
identifying all parties who may be re-
sponsible for the “accident” and all in-
surers who may be obligated to pro-
vide coverage.

Case: 1:12-cv-00331 Document #: 1-1 Filed: 01/17/12 Page 57 of 65 PagelD #:61

The following is added to Transfer of
Rights of Recovery Against Others to
Us:

Transfer of Rights of Recovery Against
Others to Us does not apply to damages
caused by an “accident” with an “underin-
sured motor vehicle” if we:

a. Have been given prompt written notice
of a tentative settlement between an
“insured” and a person(s) or organiza-
tion(s) who may be legally responsible
for the “accident”, or the insurer or fe-
gal representative of such person(s) or
organization(s); and

b. Fail to advance payment to the “in-
sured” in an amount equal to the “ten-
tative settlement” within 30 days after
receipt of the notice.

If we advance payment to the “insured” in
an amount equal to the “tentative settle-
ment" within 30 days after receipt of notice:

a. That payment will be separate from
any amount the “insured” is entitled to
recover under the provisions of Un-
derinsured Motorists Coverage, and

b. We will also have a right to recover the
advanced payment.

However, in the event of a “settlement
agreement’, we shall be entitled to recover
only for amounts which exceed the limit of
bodily injury liability bonds or policies appli-
cable to the owner or operator of the “un-
derinsured motor vehicle”.

The following Conditions are added:
REIMBURSEMENT AND TRUST

If we make any payment and the “insured”
recovers from another party, the “insured”
shall hold the proceeds in trust for us and
pay us back the amount we have paid.

However, in the event of a “settlement
agreement’, we shall be entitled to recover
only for amounts which exceed the limit of
bodily injury liability bonds or policies appli-
cable to the owner or operator of the “un-
derinsured motor vehicle”.

ARBITRATION
a. Ifwe and an “insured” do not agree:

1. Whether that person is legally en-
titled to recover damages from a
party responsible for the “acci-
dent"; or

2. As to the amount of damages that
may be recovered ;

Includes copyrighted material of [SO

Properties, Inc., with its permission. Page 3 of 4


Case: 1:12-cv-00331 Document #: 1-1 Filed: 01/17/12 Page 63 of 65 PagelD #:67

THE CINCINNATI INSURANCE COMPANY

FECD JUL 26 2010

LUNDSTROM INSURANCE
2205 POINT BLVD STE 200
ELGIN IL 60123-7840

12141

Dear Agent:

Our commercial lines team carefully processed this policy endorsement. However, if you find
errors in the endorsement, please indicate the problems and return it via fax to 513-881-8656,
or e-mail to CLD_Service@cintin.com. We will process the corrections and issue a new
endorsement on a priority basis.

Best regards,

The Commercial Lines Department

Policy Number: CPP 081 39 36/CPA 081 39 36
Effective Date: 98-01-2010

Named Insured: RTW FOX VALLEY LLC, EVENTS OF ELEGANCE, RTW MANAGEMENT INC


AA 101 03 06

Case: 1:12-cv-00331 Document #: 1-1 Filed: 01/17/12 Page 17 of 65 PagelD #:21

insurance also does not apply while that
covered “auto” is being prepared for such
a contest or activity.

C. Limit of Insurance

Regardless of the number of covered “autos”,
“insureds”, premiums paid, claims made or
vehicles involved in the “accident”, the most
we will pay for the total of all.damages and
“covered pollution cost or expense” com-
bined, resulting from any one “accident” is the
Limit of Insurance for Liability Coverage
shown in the Declarations.

All “bodily injury", “property damage” and
“covered pollution cost or expense” resulting
from continuous or repeated exposure to sub-
stantially the same conditions will be consid-
ered as resulting from one “accident”.

No one will be entited to receive duplicate
payments for the same elements of “loss” un-
der this Coverage Form and any Medical
Payments Coverage endorsement, Uninsured
Motorists Coverage endorsement or Underin-
sured Motorists Coverage endorsement at-
tached to this Coverage Part.

Mobile Equipment Subject to Motor Vehicle
Insurance Laws

As respects SECTION Il - LIABILITY COV-
ERAGE any land vehicle, which would qualify
as “mobile equipment’, except that it is sub-
ject to a compulsory or financial responsibility
law or other motor vehicle insurance law
where it is licensed or principally garaged, is
considered a covered “auto” under SECTION
Il - LIABILITY COVERAGE, irrespective of the
Auto Designation Symbols shown for SEC-
TION Il - LIABILITY COVERAGE in the Decla-
tations.

SECTION Il! - PHYSICAL DAMAGE COVERAGE

A. Coverage

1. We will pay for “loss” to a covered “auto”
or its equipment under:

a. Comprehensive Coverage
From any cause except:

(1) The covered “auto's” collision
with another object; or

(2) The covered “auto's” overturn.

b. Specified Causes of Loss Cover-
age

Caused by:

(1) Fire, lightning or explosion;

(2) Theft;

(3) Windstorm, hail or earthquake;
(4) Flood;

(5) Mischief or vandalism; or

(6) The sinking, burning, collision or
derailment of any conveyance
transporting the covered “auto”.

c. Collision Coverage
Caused by:

(1) The covered “auto's” collision
with another object; or

(2) The covered “auto's” overturn.
2. Towing

We will pay up to the limit shown in the
Declarations for towing and labor costs

incurred each time a covered “auto” of
the private passenger type is disabled.
However, the labor must be performed at
the place of disablement.

3. Glass Breakage - Hitting a Bird or
Animal - Falling Objects or Missiles

If you carry Comprehensive Coverage for
the damaged covered “auto”, we will pay
for the following under Comprehensive
Coverage:

a. Glass breakage;

b. "Loss" caused by hitting a bird or
animal; and

c. "Loss" caused by falling objects or
missiles.

However, you have the option of having
glass breakage caused by a covered
“auto's” collision or overturn considered a
“loss” under Collision Coverage.

4. Coverage Extensions
a. Transportation Expenses

We will also pay up to $20 per day to
a maximum of $600 for temporary
transportation expense incurred by
you because of the total theft of a
covered “auto” of the private pas-
senger type. We will pay only for
those covered “autos” for which you
carry either Comprehensive or
Specified Causes of Loss Coverage.
We will pay for temporary transporta-
tion expenses incurred during the
period beginning 48 hours after the
theft and ending, regardless of the
policy's expiration, when the covered

Includes copyrighted material of Insurance

Services Office, Inc., with its permission.

Page 6 of 14


Case: 1:12-cv-00331 Document #: 1-1 Filed: 01/17/12 Page 3 of 65 PagelD #:7

THE PARTIES

12. Robert and Heike Wehrle are husband and wife, and residents of Hampshire, in Kane
County, Illinois.
13. Cincinnati is an Ohio Corporation with its principal place of business located at 6200 S.

Gilmore Road Fairfield, Ohio. Cincinnati does business in Kane County, Illinois.

THE APPLICABLE INSURANCE POLICY TERMS

14. The Cincinnati Policy includes an Underinsured Endorsement referenced as Form AA
4045 IL 04 01 (the “Underinsured Endorsement”, attached as “Exhibit A-1”).

15. The declaration page of the Cincinnati Policy indicates a $1 million limit for its
Underinsured Coverage as “The Most We Will Pay For Any One Accident or Loss” (see page 1,
“Exhibit A”).

16. Under Section B of the Underinsured Endorsement, Robert and Heike both separately
qualify as “an insured”. Under Section B(4), they each qualify as an insured for the direct bodily
injuries they suffered as a result of the accident!; and under Section B(5), they each qualify as an
insured for the loss of consortium due to injuries suffered by their spouse.” (See pages 1-2 of
Exhibit A-1).

17. Under Section A of the Underinsured Endorsement, “Coverage” is defined from the
perspective of an individual insured’s claim:

We will pay all sums the “insured” is legally entitled to recover as compensatory damages
from the owner or operator of an “underinsured motor vehicle.

' Section B(4) reads: “Anyone for injuries incurred while ‘occupying’ a covered auto”. See page 2 of the
Underinsured Endorsement referenced as Exhibit A-1.

? Section B(5) reads: “Anyone for damages he or she is entitled to recover because of “bodily injury” sustained by
another “insured”. See page 2 of the Underinsured Endorsement referenced as Exhibit A-1.

3 See page 1 of the Underinsured Endorsement referenced as Exhibit A-1.


————Ease:-t:42-cv-00331 Document #: 1-1 Filed: 01/17/12 Page 38 of 65 PagelD #:42

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

CinciPlus

BUSINESS AUTO EXPANDED COVERAGE (XC®)
ENDORSEMENT

This endorsement modifies insurance provided by the following:

BUSINESS AUTO COVERAGE FORM

With respect to the coverage provided by this endorsement, the provisions of the Coverage Form apply un-
less modified by this endorsement.

A.

AA 265 04 09

Who is an Insured - Amended

SECTION Il - LIABILITY COVERAGE, A.
Coverage, 1. Who is an Insured is amended
by adding the following:

The following are “insureds”:

1. Any subsidiary which is a legally incorpo-
tated entity of which you own a financial
interest of more than 50% of the voting
stock on the effective date of this cover-
age form.

However, the insurance afforded by this
provision does not apply to any subsidi-
ary that is an “insured” under any other
automobile liability policy, or would be an
"insured” under such policy but for termi-
nation of such policy or the exhaustion of
such policy's limits of insurance.

2. Any organization that is newly acquired or
formed by you and over which you
maintain majority ownership.

The insurance provided by this provision:

a. Is effective on the date of acquisition
or formation, and is afforded for 180
days after such date;

b. Does not apply to "bodily injury” or
"property damage” resulting from an
“accident” that occurred before you
acquired or formed the organization;

c. Does not apply to any newly ac-
quired or formed organization that is
a joint venture or partnership; and

d. Does not apply to an insured under
any other automobile liability policy,
or would be an insured under such a
policy but for the termination of such
policy or the exhaustion of such pol-
icy’s limits of insurance.

3. Any of your “employees” while using a

covered “auto” in your business or your

personal affairs, provided you do not
own, hire or borrow that “auto”.

B. Liability Coverage Extensions - Supple-

mentary Payments - Higher Limits

SECTION II - LIABILITY COVERAGE, A.
Coverage, 2. Coverage Extensions, a. Sup-
plementary Payments is amended by:

1. Replacing the $2,000 Limit of Insurance
for bail bonds with $4,000 in (2); and

2. Replacing the $250 Limit of Insurance for
reasonable expenses with $500 in (4).

Amended Fellow Employee Exclusion

SECTION Hl - LIABILITY COVERAGE, B. Ex-
clusions, 5. Fellow Employee is amended by
adding the following:

But this exclusion does not apply if the
“bodily injury" results from the use of a
covered “auto” you own or hire. Cover-
age is excess over any other collectible
insurance.

Hired Auto - Physical Damage

If hired “autos” are covered “autos” for Liabil-
ity Coverage, then Comprehensive and Colli-
sion Physical Damage Coverages as pro-
vided under SECTION Ill - PHYSICAL DAM-
AGE COVERAGE of this Coverage Part are
extended to “autos” you hire of the private
passenger type or light truck (10,000 pounds
or less gross vehicle weight) type, subject to
the following:

1. The most we will pay for “loss” to any
hired “auto” is $35,000 or the actual cash
value or cost to repair or replace, which-
ever is the least, minus a deductible.

2. The deductible will be equal to the largest
deductible applicable to any owned
“auto” of the private passenger type or
light truck type for that coverage, or
$1,000, whichever is less.

Includes copyrighted material of ISO

Properties, Inc., with its permission.

Page 1 of 3


Ease: £:12-cv-00331 Document #: 1-1 Filed: 01/17/12 Page 26 of 65 PagelD #:30

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

ILLINOIS CHANGES

For a covered “auto” licensed or principally garaged in Illinois, this endorsement modifies insurance provided
under the following:

BUSINESS AUTO COVERAGE FORM

With respect to coverage provided by this endorsement, the provisions of the Coverage Form apply unless
modified by the endorsement.

A. Changes in Liability Coverage

AA 4136 IL 06 03

1. Paragraph A.1.b.(3) of the Who is an In-
sured provision does not apply.

2. Our Limit of Insurance applies except
that we will apply the limit shown in the
Declarations to first provide the separate
limits required by the Illinois Safety Re-
sponsibility Law as follows:

a. $20,000 for “bodily injury” to any one
person caused by any one “acci-
dent",

b. $40,000 for “bodily injury" to two or
more persons caused by any one
“accident”, and

c. $15,000 for “property damage"
caused by any one "accident".

This provision will not change our total Limit
of Insurance.

Changes in Physical Damage Coverage

The following is added to the Limit of Insur-
ance provision with respect to repair or re-
placement resulting in better than like kind or
quality and supercedes any provision to the
contrary:

3. We may deduct for betterment if:

a. The deductions reflect a measurable
decrease in market value attributable
to the poorer condition of, or prior
damage to, the vehicle.

b. The deductions are for prior wear
and tear, missing parts and rust
damages that is reflective of the
general overall condition of the vehi-
cle considering its age. In this event,
deductions may not exceed $500.

C. Changes in Conditions

The Other Insurance condition is changed by
the addition of the following:

Liability Coverage provided by this Coverage
Form for any “auto” you do not own is primary
if:

1. The “auto” is owned or held for sale or
lease by a new or used vehicle dealer-
ship;

2. The “auto” is operated by an “insured”
with the permission of the dealership de-
scribed in Paragraph 1. while your “auto”
is being repaired or evaluated; and

3. The Limit of Insurance for Liability Cover-
age under this policy is at least:

a. $100,000 for “bodily injury” to any
one person caused by any one "ac-
cident’,

b. $300,000 for “bodily injury” to two or
more persons caused by any one
“accident’, and

c. $50,000 for “property damage”
caused by any one “accident”.

Includes copyrighted material of ISO

Properties, Inc., with its permission.


Case: 1:12-cv-00331 Document #: 1-1 Filed: 01/17/12 Page 2 of 65 PagelD #:6

5. The drunk driver responsible for the accident, Eric M. Barth, was insured by GEICO with
limits of $100,000 per person with an aggregate of $300,000 per occurrence. GEICO has
tendered it’s per person limit of $100,000 to each of the Plaintiffs. Cincinnati has consented to
the settlement with GEICO.

6. The business auto coverage under the Cincinnati Policy provides $1 million of
underinsured motorist coverage.

7. There is no dispute between the parties that Robert Wehrle’s individual claim exceeds
$750,000 and that Heike Wehrle’s individual claim exceeds $1.5 million.

8. On May 2, 2011, Plaintiffs’ counsel made demand upon Cincinnati to tender the full $1
million of aggregate underinsured coverage.

9. Under Plaintiffs’ interpretation of the policy, Heike Wehrle’s underinsured claim against
Cincinnatti (after the GEICO payment) would be $900,000 and Robert Wehrle’s underinsured
claim against Cincinnati (after the GEICO payment) would be $650,000. Due to the policy’s $1
million ‘per occurrence’ aggregate coverage limitation, each of the Wehrle’s claims would abate
proportionately.

10. Cincinnati claims that it is entitled to reduce its $1 million “per occurrence’ aggregate
coverage limitation by the $200,000 paid to the Plaintiffs by GEICO and has tendered $800,000
to the Plaintiffs ($320,000 to Robert Wehrle; and $480,000 to Heike Wehrle).

11. This court is vested with jurisdiction to resolve the actual controversy between the parties

pursuant to 735 ILCS 5/2-701.


Case: 1:12-cv-00331 Document #: 1-1 Filed: 01/17/12 Page 50 of 65 PagelD #:54

UNINSURED/UNDERINSURED MOTORISTS
PROTECTION OPTION SELECTION FORM - ILLINOIS

The laws of Illinois require that automobile liability insurance policies offer Uninsured/Underinsured Motorists
Coverage limits equal to the Bodily Injury Limits of the policy to which the coverage attaches. You may, how-
ever, select coverage at a lower limit.

YOU ARE ELECTING TO PURCHASE UNINSURED MOTORISTS LIMITS LESS THAN YOUR BODILY IN-
JURY LIABILITY LIMITS WHEN YOU SIGN THIS FORM.

Uninsured Motorists Coverage provides for payment of certain benefits for damages caused by owners or
operators of uninsured motor vehicles because of bodily injury or death resulting therefrom.

Underinsured Motorists Coverage provides for payment of certain benefits for damages caused by owners or
operators of underinsured motor vehicles because of bodily injury or death resulting therefrom.

An Underinsured motor vehicle is a vehicle to which a bodily injury policy or bond applies at the time of the
accident but its limit for bodily injury liability is less than the limit of liability for this coverage.

Such benefits may include payments for certain medical expenses, lost wages and pain and suffering, subject
to limitations and conditions in the policy.

Uninsured/Underinsured Motorist options are available tor a modest premium: PLEASE CONTACT YOUR
AGENT for the exact cost.

PLEASE SELECT ONE OF THE FOLLOWING:
t select Uninsured/Underinsured Motorists Coverage at the following limits which are lower than the

Bodily Injury Liability Limits of my policy.
Thousand Dollars

Split Limit Single Limit
LIMITS OF LIABILITY O ‘20/40 O 55
O 2550 O 7
1 50/100 O 100
0 100/300 O1 300
O Other 0 Other

Attached to and forming a part of Policy Number CPA 081 39 36 and any Renewal or Replacement
jereot.

DATE

INSURED'S SIGNATURE

NOTE: A. *Underinsured Motorist Coverage does not apply unless Uninsured Motorist Coverage limits ex-
ceed the minimum Financial Responsibility Limits of $20,000 each person/$40,000 each occur-
rence or $55,000 Single Limit Liability.

B. Please refer to form CPA-1314 IL for information regarding “Uninsured Motorist Property Dam-
age”.

AP 401 IL (7/95)


—___ Case: 1:12-cv-00331 Document #: 1-1 Filed: 01/17/12 Page 34 of 65 PagelD #:38

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

ILLINOIS UNDERINSURED MOTORISTS COVERAGE

Throughout this Coverage Part “you” and “your” refer to the organizations and natural persons shown as a
Named Insured in the Declarations of this Coverage Part. "YouTM and "your" do not refer to any other persons
or organizations, including but not limited to agents, employees, servants, members, shareholders or inde-
pendent contractors of any person or organization shown as a Named insured in the Declarations of this
Coverage Part.

For a covered “auto” licensed or principally garaged in, or "garage operations” conducted in, Illinois, this en-
dorsement modifies insurance provided under the following:

BUSINESS AUTO COVERAGE FORM
GARAGE COVERAGE FORM

MOTOR CARRIER COVERAGE FORM
TRUCKERS COVERAGE FORM

With respect to coverage provided by this endorsement, the provisions of the Coverage Part apply unless
modified by the endorsement.

This endorsement changes the policy effective on the inception date of the Coverage Part unless another
date is indicated below.

Endorsement Effective: Policy Number:
08-01-2010 CPA 081 39 36

Named Insured:

RTW_FOX VALLEY LLC, EVENTS OF ELEGANCE, RTW MANAGEMENT INC

Countersigned by:

(Authorized Representative)
SCHEDULE

Limit of Liability

$ : Each Accident

(If no entry appears above, information required to complete this endorsement will be shown in the Declara-
tions as applicable to this endorsement.)

With respect to coverage provided by this endorse- a. We have been given prompt written
ment, the provisions of the Coverage Form apply notice of a “tentative settlement” and
unless modified by the endorsement. decide to advance payment to the “in-
sured” in an amount equal to that
A. Coverage “tentative settlement” within 30 days
1. We will pay all sums the "insured" is legally after receipt of notification; or
bali to ieee as compensalery dam- b. We and an “insured” have reached a
ages from the owner or operator of an “un- . 7
derinsured motor vehicle”. The damages sellementagiecient
must result from “bodily injury” sustained by 3. Any judgment for damages arising out of a
the "insured" caused by an "accident". The “suit” brought without written notice to us is
owner's or operator's liability for these not binding on us.

damages must result from the ownership,

maintenance or use of the “underinsured 8. Whois an Insured

motor vehicle”. The following are insureds:

2. We will pay only after all liability bonds or 14. You are an “insured”. However, if you are
policies have been partially or fully ex- not a natural person, you are an “insured”
hausted by judgments or payments, unless: only for purposes of selecting limits of Un-

serinsured Motorists Coverage or execut-
HIBIT
\y 1 of ISO
AA 4045 IL 04 01 } -_ ission. Page 1 of 4


AA 261 03 06

Case: 1:12-cv-00331 Document #: 1-1 Filed: 01/17/12 Page 43 of 65 PagelD #:47

the “auto” is being prepared for such a
contest or activity.

D. Limit of Insurance

Regardless of the number of covered “autos”,
"insureds", premiums paid, claims made or ve-
hicles involved in the "accident", the most we
will pay for “bodily injury” for each "insured" in-
jured in any one “accident” is the Limit of Insur-
ance for Auto Medical Payments Coverage
shown in the Declarations.

No one will be entitled to receive duplicate pay-
ments for the same elements of “loss” under
this coverage and any Liability Coverage Form,
Uninsured Motorists Coverage endorsement or
Underinsured Motorists Coverage Endorsement
attached to this Coverage Part.

Changes in Conditions

The Conditions are changed for Auto Medical
Payments Coverage as follows:

F,

1. The Transfer of Rights of Recovery
Against Others to Us Condition does not

apply.

2. The reference in Other Insurance in the
Business Auto and Garage Coverage
Forms and Other Insurance - Primary and
Excess Insurance Provisions in the Truck-
ers and Motor Carrier Coverage Forms to
“other collectible insurance” applies only to
other collectible auto medical payments in-
surance.

Additional Definitions
As used in this endorsement:

1. "Family member" means a person related
to you by blood, marriage or adoption who
is a resident of your household, including a
ward or foster child.

2. “Occupying” means in, upon, getting in, on,
out or off.

Includes copyrighted material of Insurance

Services Office, Inc., with its permission.

Page 2 of 2


————€ase: £:12-cv-00331 Document #: 1-1 Filed: 01/17/12 Page 29 of 65 PagelD #:33

IMPORTANT NEW COVERAGE INFORMATION

We are required to offer a new coverage to our Illinois insureds for new policies and renewal policies effective
January 1, 1985 or later. The law applies to policies that cover a motor vehicle used as a private passenger
automobile or a motor home, mini-motor home, truck camper or van camper used for recreational purposas,
designed for use on public highways and required to be registered in Illinois or is principally garaged in Illinois.

The new coverage is called Uninsured Motorist Property Damage. You may buy the coverage if your vehicle
is not covered by collision insurance. Uninsured Motorist Property Damage coverage will pay tor property
damage to your motor vehicle caused by an uninsured motorist, subject to certain limitations.

You must be able to give the insurance company the name and address of the owner of the uninsured or hit-
and-run motor vehicle or registration number and description of the vehicle. There must be physical contact
between the uninsured or hit-and-run motor vehicle and your motor vehicle. No coverage will be provided for
the loss of use of your motor vehicle or for loss or damage to personal property located in your motor vehicle.

The amount of coverage provided by Uninsured Motorist Property Damage coverage will be the actual cash
value of the motor vehicle described on the policy or $15,000, whichever is less, sublect to.a $250 deductible.
You must pay a premium for each motor vehicle you want covered by Uninsured Motorist Property Damage.

IF YOU WOULD LIKE MORE INFORMATION ON THIS COVERAGE OR WANT TO ADD IT TO YOUR POL-
ICY, CONTACT YOUR AGENT.

CPA-1314 IL (7/95)


AA 101 03 06

Case: 1:12-cv-00331 Document #: 1-1 Filed: 01/17/12 Page 13 of 65 PagelD #:17

an-"auto" you previously owned that
had that coverage; and

b. You tell us within 30 days after you
acquire it that you want us to cover it
for that coverage.

C. Certain Trailers, Mobile Equipment and

Temporary Substitute Autos

If Liability Coverage is provided by this Cov-
erage Form, the following types of vehicles
are also covered “autos” for Liability Cover-
age:

1. "Trailers" with a load capacity of 2,000
pounds or less designed primarily for
travel on public roads.

2. "Mobile equipment’ while being carried or
towed by a covered “auto”.

3. Any “auto” you do not own while used
with the permission of its owner as a
temporary substitute for a covered “auto”
you own that is out of service because of
its:

a. Breakdown;
b. Repair;

c. Servicing;
d. “Loss”; or
e. Destruction.

SECTION II - LIABILITY COVERAGE

Coverage

We will pay all sums an “insured” legally must
pay as damages because of "bodily injury” or
“property damage” to which this insurance
applies, caused by an “accident” and resulting
from the ownership, maintenance or use of a
covered “auto”.

We will also pay all sums an “insured” legally
must pay as a “covered pollution cost or ex-
pense” to which this insurance applies,
caused by an “accident” and resulting from
the ownership, maintenance or use of cov-
ered "autos". However, we will only pay for the
“covered pollution cost or expense” if there is
either “bodily injury” or “property damage" to
which this insurance applies that is caused by
the same “accident”.

We have the right and duty to defend any “in-
sured” against a “suit” asking for such dam-
ages or a “covered pollution cost or expense”.
However, we have no duty to defend any “in-
sured” against a "suit" seeking damages for
“bodily injury” or "property damage" or a “cov-
ered pollution cost or expense” to which this
insurance does not apply. We may investigate
and settle any claim or “suit” as we consider
appropriate. Our duty to defend or settle ends
when the Liability Coverage Limit of Insurance
has been exhausted by payment of judg-
ments or settlements.

1. Whois an Insured
The following are “insureds”:
a. You for any covered “auto”.

b. Anyone else while using with your
permission a covered “auto” you
own, hire or borrow except:

(1) The owner or anyone else from
whom you hire or borrow a cov-

ered “auto”. This exception does
not apply if the covered “auto” is
a “trailer” connected to a cov-
ered "auto" you own.

(2) Your “employee” if the covered
"auto" is owned by that “em-
ployee” or a member of his or
her household.

(3) Someone using a _ covered
"auto" while he or she is working
in a business of selling, servic-
ing, repairing, parking or storing
"autos" unless that business is
yours.

(4) Anyone other than your “em-
ployees”, partners (if you are a
partnership), members (if you
are a limited liability company),
or a lessee or borrower or any of
their “employees”, while moving
property to or from a covered
“auto”.

(5) A partner (if you are a partner-
ship), or a member (if you are a
limited liability company), for a
covered “auto” owned by him or
her or a member of his or her
household.

c. Anyone liable for the conduct of an
"insured" described above but only
to the extent of that liability.

2. Coverage Extensions
a. Supplementary Payments
We will pay for the “insured”:
(1) All expenses we incur.

(2) Up to $2,000 for the cost of bail
bonds (including bonds for re-
lated traffic law violations) re-

Includes copyrighted material of Insurance

Services Office, Inc., with its permission.

Page 2 of 14


Case: 1:12-cv-00331 Document #: 1-1 Filed: 01/17/12 Page 65 of 65 PagelD #:69

COMMON POLICY CONDITIONS

All Coverage Parts included in this policy are subject
to the following conditions.

A. CANCELLATION

D.

AA 601 05 09

1. The first Named Insured shown in the Dec-
larations may cancel this policy by mailing
or delivering to us advance written notice of
cancellation.

2. We may cancel this policy by mailing or de-
livering to the first Named Insured written
notice of cancellation at least:

a. 10 days before the effective date of
cancellation if we cancel for nonpay-
ment 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. The refund will be pro rata. The can-
cellation 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,

CHANGES

This policy contains all the agreements between
you and us conceming the insurance afforded.
The first Named Insured shown in the Declara-
tions is authorized to make changes in the
terms of this policy with our consent. This pol-
icy's terms can be amended or waived only by
endorsement issued by us and made a part of
this policy.

EXAMINATION OF YOUR BOOKS AND REC-
ORDS

We may examine and audit your books and re-
cords as they relate to this policy at any time
during the policy period and up to three years
afterward.

INSPECTIONS AND SURVEYS
1. We have the right to:

E.

F.

a. Make inspections and surveys at any
time;

b. Give you reports on the conditions we
find; and

ce. Recommend changes.

2. We are not obligated to make any inspec-
tions, surveys, reports or recommendations
and any such actions we do undertake re-
late only to insurability and the premiums to
be charged. We do not make safety in-
spections. 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, advi-
sory, rate service or similar organization
which makes insurance inspections, sur-
veys, reports or recommendations.

4. Paragraph 2. of this condition does not ap-
ply to any inspections, surveys, reports or
recommendations we may make relative to
certification, under state or municipal stat-
utes, ordinances or regulations, of boilers,
pressure vessels or elevators.

PREMIUMS

The first Named Insured shown in the Declara-

tions:

1. Is responsible for the payment of all premi-
ums; and

2. Will be the payee for any return premiums
we pay.

TRANSFER OF YOUR RIGHTS AND DUTIES
UNDER THIS POLICY

Your rights and duties under this policy may not
be transferred without our written consent ex-
ceptin the case of death of an individual named
insured.

If you die, your rights and duties will be trans-
ferred 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.

Includes copyrighted material of Insurance

Services Office, Inc., with its permission.

Page 2 of 2


Case: 1:12-cv-00331 Document #: 1-1 Filed: 01/17/12 Page 51 of 65 PagelD #:55

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

ILLINOIS UNINSURED MOTORISTS COVERAGE

Throughout this Coverage Part "you" and “your” refer to the organizations and natural persons shown as a
Named Insured in the Declarations of this Coverage Part. "You" and "your" do not refer to any other persons
or organizations, including but not limited to agents, employees, servants, members, shareholders or inde-
pendent contractors of any person or organization shown as a Named insured in the Declarations of this
Coverage Part.

For a covered “auto” licensed or principally garaged in, or "garage operations" conducted in, Illinois, this en-
dorsement modifies insurance provided under the following:

BUSINESS AUTO COVERAGE FORM
GARAGE COVERAGE FORM

MOTOR CARRIER COVERAGE FORM
TRUCKERS COVERAGE FORM

With respect to coverage provided by this endorsement, the provisions of the Coverage Part apply unless
modified by the endorsement.

This endorsement changes the policy effective on the inception date of the Coverage Part unless another
date is indicated below.

Endorsement Effective: Policy Number:
08-01-2010 CPA 081 39 36

Named Insured:

RTW FOX VALLEY LLC, EVENTS OF ELEGANCE, RTW MANAGEMENT INC

Countersigned by:

(Authorized Representative)
SCHEDULE

Limit of Insurance
$ Each “Accident”

(if no entry appears above, information required to complete this endorsement will be shown in the Declara-
tions as applicable to this endorsement).

A. Coverage 3. Any judgment for damages arising out of a
, -, = “suit” brought without our written consent is
4. We will pay all sums the “insured” is legally not binding on us.

entitled to recover as compensatory dam-
ages from the owner or operator of an “un-  B,_ Who is an Insured
insured motor vehicle". The damages must

result from "bodily injury” sustained by the The following are insureds:

insured” caused by an “accident”. The 4. You are an “insured”. However, if you are

owner's or operator's liability for these not a natural person, you are an “insured”

damages must result from the ownership, only for purposes of selecting limits of Un-

maintenance or use of the “uninsured mo- insured Motorists Coverage or executing a

tor vehicle”. rejection of Uninsured Motorists Coverage.
2. If this insurance provides a limit in excess 2. ‘Family members” of natural persons

of the amounts required by the applicable shown as a Named Insured in the Declara-

law where a covered “auto” is principally tions of this Coverage Part

garaged, we will pay only after all liability ”

bonds or policies have been partially or fully 3. Employees of the Named Insured, but only

exhausted by payment of judgments or set- for injuries arising out of and incurred while

tlements. in the course and scope of employment for

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AA 4044 IL 04 01 Properties, Inc., with its permission. Page 1 of 4


Gase:4:12-ev-00331 Document #: 1-1 Filed: 01/17/12 Page 53 of 65 PagelD #:57

2.

AA 4044 IL 04 01

providing coverage on a primary
basis. Our share is the proportion
that our limit of liability bears to the
total of all applicable limits of liabil-
ity for coverage on a primary ba-
SIs.

(2) On an excess basis, we will pay
only our share of the loss that
must be paid under insurance
providing coverage on an excess
basis. Our share is the proportion
that our limit of liability bears to the
total of all applicable limits of liabil-
ity for coverage on an excess ba-
sis.

Duties in the Event of Accident, Claim,
Suit or Loss is changed by adding the fol-
lowing:

a. You or any other involved “insured"
must promptly notify the police if a hit-
and-run driver is involved;

b. You or any other involved “insured”
must promptly send us copies of the
legal papers if a “suit” is brought; and

c. You and any other involved “insured”
must cooperate with us in the investi-
gation, settlement or defense of the
claim or "suit". Cooperation includes
identifying all parties who may be re-
sponsible for the “accident” and all in-
surers who may be obligated to pro-
vide coverage.

Transfer of Rights of Recovery Against
Others to Us does not apply.

The following Conditions are added:

If we make any payment and the “insured”
recovers from another party, the "insured"
shall hold the proceeds in trust for us and
pay us back the amount we have paid.

ARBITRATION
A. Ifwe and an “insured” do not agree:

1. Whether that person is legally en-
titled to recover damages from a
party responsible for the “acci-
dent"; or

2. As to the amount of damages that
are recovered;

the matter may be settled by arbitra-
tion. If the “insured” requests, we and
the “insured” will each select an arbi-
trator.

The two arbitrators will select a third. If
the arbitrators are not selected within
45 days of the insured’s request for ar-
bitration, either party may request that

arbitration be submitted to the Ameri-
can Arbitration Association. Each party
will:

1. Pay the expenses it incurs; and

2. Bear the expenses of the third ar-
bitrator equally.

B. Unless both parties agree otherwise,
arbitration will take place in the county
in which the “insured” lives.

C._ {f arbitration is submitted to the Ameri-
can Arbitration Association, then the
American Arbitration Association rules
shall apply to all matters except medi-
cal opinions. As to medical opinions, if
the amount of damages being sought:

1. Is equal to or less than the mini-
mum limit for bodily injury liability
specified by the Illinois Safety Re-
sponsibility Law, then the Ameri-
can Arbitration Association rules
shall apply.

2. Exceeds the minimum limit for
bodily injury liability specified by
the Illinois Safety Responsibility
Law, then the rules of evidence
that apply in the circuit court for
placing medical opinions into evi-
dence shall apply.

In all other arbitration proceedings, lo-
cal rules of law as to arbitration proce-
dure and evidence will apply.

D. A decision agreed to by two of the ar-
bitrators will be binding as to:

1. Whether the “insured” is legally
entitled to recover damages from
a party responsible for the “acci-
dent”; and

2. The amount of damages not ex-
ceeding the minimum limit for bod-
ily injury liability specified by the Il-
linois Safety Responsibility Law.

F. Additional Definitions

As used in this endorsement:

1.

“Family member" means a natural person
who is related to and is a resident of the
same household as a natural person
shown as a Named Insured in the Declara-
tions of this Coverage Part. Such relation
may be by blood, marriage or adoption and
may include a ward or foster child.

“Motor vehicle” means a self-propelled ve-
hicle designed for use and principally used
on public roads, including an automobile,
truck, semi-tractor, motorcycle and bus.
"Motor vehicle” also includes a motor

Includes copyrighted material of ISO

Properties, Inc., with its permission.

Page 3 of 4


AA 101 03 06

(3) Being stored, disposed of,
treated or processed in or upon
the covered “auto”;

b. Before the “pollutants” or any prop-
erty in which the “pollutants” are
contained are moved from the place
where they are accepted by the “in-
sured” for movement into or onto the
covered “auto”; or

c. After the “pollutants” or any property
in which the “pollutants” are con-
tained are moved from the covered
"auto" to the place where they are fi-
nally delivered, disposed of or aban-
doned by the “insured”,

Paragraph a. of this exclusion does not
apply to fuels, lubricants, fluids, exhaust
gases or other similar “pollutants” that are
needed for or result from the normal
electrical, hydraulic or mechanical func-
tioning of the covered “auto” or its parts,
if:

(1) The “pollutants” escape, seep,
migrate, or are discharged, dis-
persed or released directly from
an “auto” part designed by its
manufacturer to hold, store, re-
ceive or dispose of such "pollut-
ants"; and

(2) The “bodily injury", “property
damage” or “covered pollution
cost or expense” does not arise
out of the operation of any
equipment listed in Paragraphs
6.b. and 6.c. of the definition of
“mobile equipment”.

However, this exception to Paragraph a.
does not apply if the fuels, lubricants, flu-
ids, exhaust gases or other similar “pol-
lutants” are intentionally discharged, dis-
persed or released.

Paragraphs b. and c. of this exclusion do
not apply to “accidents” that occur away
from premises owned by or rented to an
*insured” with respect to “pollutants” not
in or upon a covered “auto” if:

(1) The “pollutants” or any property
in which the “pollutants” are
contained are upset, overturned
or damaged as a result of the
maintenance or use of a cov-
ered “auto”; and

(2) The discharge, dispersal, seep-
age, migration, release, emis-
sion or escape of the “pollut-
ants" is caused directly by such
upset, overturn or damage.

12.

13,

Case: 1:12-cv-00331 Document #: 1-1 Filed: 01/17/12 Page 16 of 65 PagelD #:20

d. Ator from any premises, site or loca-
tion on which any insured or any
contractors or subcontractors work-
ing directly or indirectly on any in-
sured's behalf are performing opera-
tions:

(1) If the "pollutants" are brought on
or to the premises, site or loca-
tion in connection with such op-
erations by such “insured”, con-
tractor or subcontractor; or

(2) If the operations are to test for,
monitor, clean up, remove,
contain, treat, detoxify or neu-
tralize, or in any way respond to,
or assess the effects of “pollut-
ants”,

Subparagraph d.(1) does not apply to
“bodily injury” or “property damage” aris-
ing out of the escape of fuels, lubricants
or other operating fluids which are
needed to perform the normal electrical,
hydraulic or mechanical functions neces-
sary for the operation of “mobile equip-
ment” or its parts, if such fuels, lubricants
or other operating fluids escape from a
vehicle part designed to hold, store or re-
ceive them. This exception does not ap-
ply if the fuels, lubricants or other operat-
ing fluids are intentionally discharged,
dispersed or released, or if such fuels, lu-
bricants or other operating fluids are
brought on or to the premises, site or lo-
cation with the intent to be discharged,
dispersed or released as part of the op-
erations being performed by such “in-
sured”, contractor or subcontractor.

War

"Bodily injury” or “property damage” aris-
ing directly or indirectly out of:

a. War, including undeclared or civil
war;

b. Warlike action by a military force, in-
cluding action in hindering or de-
fending against an actual or ex-
pected attack, by any government,
sovereign or other authority using
military personnel or other agents; or

c. Insurrection, rebellion, revolution,
usurped power, or action taken by
governmental authority in hindering
or defending against any of these.

Racing

Covered “autos” while used in any pro-
fessional or organized racing or demoli-
tion contest or stunting activity, or while
practicing for such contest or activity. This

Includes copyrighted material of Insurance

Services Office, Inc., with its permission.

Page 5 of 14