Exhibit 10.72


 


Batan Insurance Company SPC, Ltd.


on behalf of RTSI Segregated Portfolio


c/o
Aon Insurance Managers (Cayman) Ltd. 

Buckingham Square, 720 West Bay Road


P.O. Box
69


Grand
Cayman KY1-1102, Cayman Islands 

(the “Company”)


 


DECLARATIONS PAGE


 


This Declarations Page and
the attached Policy including the attached endorsements complete this Batan
Insurance Company SPC, Ltd. Excess Healthcare Professional and General
Liability Policy:


 


	
   

  	
  Policy
  Number:

  	
  SPA-001-09
  (Previous Policy Number: SPA-001-08)

  
	
   

  	
   

  	
   

  
	
  1.

  	
  Insured:

  	
   

  
	
   

  	
  (a) Named
  insured: 

  	
  Radiation Therapy Services, Incorporated
  

  
	
   

  	
  (b) Named
  Insured’s Address:

  	
  2234
  Colonial Boulevard 

  Fort Myers, FL 33907

  
	
   

  	
   

  	
   

  
	
  2.

  	
  Policy
  Period:

  	
  October 14, 2009 to October 14,
  2010 

  Both days at 12:01 A.M Local Standard Time at the mailing address shown
  above.

  
	
   

  	
   

  	
   

  
	
  3.

  	
  Description
  of Operations:

  	
  Radiation Therapy Services

  
	
   

  	
   

  	
   

  
	
  4.

  	
  Limits of
  Liability:

  	
   

  
	
   

  	
   

  
	
   

  	
  Professional Liability:

  
	
   

  	
  $15,000,000

  	
  Each Claim, Each Professional Liability Incident (inclusive of defense expenses)

  
	
   

  	
  $15,000,000

  	
  In the annual aggregate
  (inclusive of defense expenses)
  in respect of all Named Insureds.

  
	
   

  	
   

  	
   

  
	
   

  	
  General Liability
  (including Patient General Liability):

  
	
   

  	
  $15,000,000

  	
  Each Claim, Each General Liability Incident (inclusive of defense expenses)

  
	
   

  	
  $15,000,000

  	
  In the annual aggregate
  (inclusive of defense expenses) in
  respect of all Named Insureds.

  
	
   

  	
   

  	
   

  
	
  5.

  	
  Self-Insured
  Retention:

  
	
   

  	
   

  	
   

  
	
   

  	
  Professional Liability:

  
	
   

  	
  $1,000,000

  	
  each and every Claim, each and every Professional Liability Incident (defense expenses in
  addition)

  
	
   

  	
   

  	
   

  
	
   

  	
  General Liability
  (including Patient General Liability):

  
	
   

  	
  $1,000,000

  	
  each and every Claim, each and every General Liability Incident (defense expenses in addition).

  
				



 


	
   

  	
  [GRAPHIC]

  	
   

  



 


 


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  6.

  	
  Retroactive
  Date:

  	
  March 4, 1976 or as
  per the schedule of Insureds on
  file with the Named Insured.

  
	
   

  	
   

  	
   

  
	
  7.

  	
  Policy
  Premium:

  	
   

  
	
   

  	
   

  
	
   

  	
  Fifty percent (50%) down
  payment due within 30 days of policy inception and remaining to be paid in
  nine (9) equal installments.

  
	
   

  	
   

  
	
   

  	
  Premiums listed are net of
  any and all taxes, fees and surcharges of any kind. Premiums paid to Cayman
  based insurance markets by U.S. Insureds may
  be subject to Federal Excise Tax as well as other state and/or federal taxes.
  The Insured is responsible for
  reporting and remitting this tax to the appropriate authorities. We suggest Insureds check with their tax advisors
  for further information.

  



 


 


	
   

  	
  Date Signed:

  	
  February 25, 2010

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Signed By

  	
  /s/ Authorized Signatory

  	
   

  
	
   

  	
   

  
	
   

  	
  For & on Behalf
  of Aon Insurance Managers (Cayman) Ltd. 

  As Managers of Batan Insurance Company SPC, Ltd 

  on behalf of RTSI Segregated Portfolio

  



 


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BATAN INSURANCE COMPANY SPC, LTD. 

EXCESS PROFESSIONAL AND GENERAL LIABILITY

INSURANCE POLICY 

CLAIMS MADE AND REPORTED COVERAGE


 


THIS IS A CLAIMS MADE AND REPORTED POLICY. COVERAGE
IS ONLY PROVIDED FOR CLAIMS WHICH
ARE BOTH: (1) FIRST MADE AGAINST THE INSURED
DURING THE POLICY PERIOD OR
ANY APPLICABLE EXTENDED REPORTING PERIOD; AND (2) REPORTED TO UNDERWRITERS
AS SOON AS PRACTICABLE, BUT NOT MORE THAN 30 DAYS AFTER EXPIRATION OF THE POLICY PERIOD OR AFTER THE EXPIRATION OF
ANY APPLICABLE EXTENDED REPORTING PERIOD. COVERAGE IS ONLY PROVIDED FOR CLAIMS ARISING FROM PROFESSIONAL SERVICES WHICH WERE RENDERED
OR GENERAL LIABILITY INCIDENTS WHICH
OCCURRED SUBSEQUENT TO THE RETROACTIVE DATE AND PRIOR TO THE EXPIRATION OF THE POLICY PERIOD.


 


This Policy is divided into
two coverage Sections, Professional Liability (Section 1) and General
Liability (Section 2). The following Insuring Agreements, Conditions,
Definitions and Exclusions apply to both Sections and, unless noted otherwise,
any Endorsements to this Policy.


 


In consideration of the
payment of the premium and the Self insured Retention, and in reliance upon the
representations in the insured’s completed
and signed application and any materials submitted therewith, and subject to
the Insuring Agreements, Conditions, Definitions and Exclusions of this Policy,
Underwriters agree with the Insured as
follows:


 


INSURING AGREEMENTS


 


1.                         COVERAGE -
CLAIMS MADE AND REPORTED


 


Section 1
- Professional Liability


 


Subject to the Limit of
Liability of this Policy, Underwriters agree to indemnify the Insured for those sums in excess of the
Self Insured Retention that the Insured becomes
legally obligated to pay as Damages as
a result of Claims which are both
first made against the Insured during
the Policy Period (or any
applicable extended reporting period) and reported to Underwriters as soon as
practicable (but not more than 30 days after the expiration of the Policy Period or after the expiration of
any applicable extended reporting period) and which result from a Professional Liability Incident to which
this Policy applies. In the event a Claim is
reported to Underwriters within 30 days after the expiration of the Policy Period or during any applicable
extended reporting period, the Claim shall
be deemed to have been reported on the last day of the Policy Period.


 


Section 2
- General Liability


 


Subject to the Limit of
Liability of this Policy, Underwriters agree to indemnify the Insured for those sums in excess of the
Self insured Retention that the Insured becomes
legally obligated to pay as Damages as
a result of Claims which are both
first made against the Insured during
the Policy Period (or any
applicable extended reporting period) and reported to Underwriters as soon as
practicable (but not more than 30 days after the expiration of the Policy Period or after the expiration of
any applicable extended reporting period) and which result from a General Liability Incident to which this
Policy applies. In the event a Claim is
reported to Underwriters within 30 days after the expiration of the Policy Period or during any applicable
extended reporting period, the Claim shall
he deemed to have been reported on the last day of the Policy Period.


 


Subject to the Fire Damage
Limit of Liability as specified in the Declarations, Underwriters agree to
indemnify the Insured for those
sums in excess of the Self Insured Retention that the Insured becomes legally obligated to pay as
Damages for Property Damage, as a result of a fire, to
premises rented to or leased by the Insured, within
the territory described in 3 below, as a result of Claims which are both first made against the Insured during the Policy Period (or any applicable extended
reporting period) and reported to Underwriters as soon as practicable (but not
more than 30 days after the expiration of the Policy
Period after the expiration of any applicable extended reporting
period).


 


3

















 


This Policy only applies to Personal Injury if caused by an offense
arising out of the conduct of the Insured’s business,
excluding advertising, publishing, broadcasting or telecasting done by, or for
the benefit of, the Insured.


 


This Policy only applies to Advertising Injury if caused by an offense
committed In the course of advertising the Insured’s
goods, products or services.


 


2.                         DEFENSE,
SETTLEMENT, INVESTIGATION


 


The Named Insured has the right and duty to
defend any Claim against an Insured seeking Damages which are payable under the terms of this Policy, even
if any of the allegations of the Claim are
groundless, false or fraudulent.


 


Underwriters shall not be
obligated to make any payment after the applicable Limit of Liability of this Policy has been exhausted by the payment of
Damages or Defense Expenses or both.


 


3.                         TERRITORY


 


With regard to Professional
Liability (Section 1), this Policy shall apply to Claims brought against the Insured in the United States of America as,
a result of Professional Services provided
anywhere in the world.


 


With regard to General
Liability (Section 2), this Policy shall apply to Claims brought against the Insured in the United States of America as
a result of General Liability Incidents which
occur in:


 


A.                     The United States of America
(including its territories and possessions), Puerto Rico and Canada;


 


B.                       International
waters or airspace, provided the General
Liability Incidents occur in the course of travel or transportation
to or from any place included in 3 (A) above; or


 


All parts of the world if:


 


(i)                       The Bodily Injury or Property Damage arises out of


 


(a)                     Goods or products made or
sold by the Insured in the
territory described in 3 (A) above, or


 


(b)                    The activities of a person
whose home is in the territory described In 3 (A) above, but is away for a
short time on the Insured’s business.


 


4.                         LIMIT OF
LIABILITY


 


The Each Claim or Each Professional Liability Incident Limit
of Liability as stated in Item 4 of the Declarations Page is the total
limit applicable for all Damages or
Defense Expenses or both arising
out of any one Professional Liability
Incident or General Liability
Incident regardless of the number of Claims made or the number of Insured
against whom Claims are
made.


 


The Annual Aggregate Limit
of Liability as stated in Item 4 of the Declarations Page is the total
limit applicable for all Damages or
Defense Expenses or both arising
out of all Claims made during the Policy Period (including any applicable
extended reporting period) regardless of the number of Claims made or the number of Insured’s against whom Claims are made.


 


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5.                         SELF
INSURED RETENTION


 


Underwriters shall only be
liable in excess of the Self Insured Retention specified in Item 5 of the
Declarations of this Policy. Underwriters shall have no obligation to make any
payment until the Self Insured Retention has been exhausted by the actual
payment of Damages or Defense Expenses or both, in respect of a Claim otherwise covered by this Policy.


 


The Insured shall bear all Damages or Defense Expenses or both, incurred until such time as the Self
Insured Retention is exhausted. The Self Insured Retention shall only be
reduced or exhausted by the actual payment of Damages
or Defense Expenses or
both, which would, except for the amount thereof, be covered by this Policy.
The Insured must pay all Defense Expenses as they accrue; until such
time as the Self Insured Retention is exhausted. Any failure by the Insured to pay Defense Expenses as they accrue shall constitute a material
breach of this Policy.


 


6.                         APPLICATION
OF POLICY


 


This Policy only applies to Professional Liability Incidents and General Liability Incidents which occur
subsequent to the Retroactive Date and prior to the expiration of the Policy Period, and regarding which a Claim is first made against the Insured during the Policy Period (or any applicable extended
reporting period) and reported to Underwriters as soon as practicable (but not
more than 30 days after the expiration of the Policy
Period or after the expiration of any applicable extended reporting
period).


 


All Claims arising out of the same Professional Liability Incident or General Liability Incident shall be treated
as a single Claim and considered
as having been made at the time the first Claim
was made. The inclusion of more than one Insured or the making of Claims
by or on behalf of more than one person or organization shall not operate
to increase Underwriters’ Limit of Liability. All related Claims shall be subject to the Limits of
Liability applicable to the Policy Period in
which the first of all such related Claims was
reported. No Claim can qualify as
both a Professional Liability Incident and
a General Liability Incident under
this Policy, and no Claim can
trigger multiple Limits of Liability under this Policy.


 


7.                         CURRENCY &
PAYMENT OF PREMIUMS & LOSSES


 


The premium and losses under
this Policy are payable in United States dollars.


 


CONDITIONS


 


1.                         INSURED’S
DUTIES IN THE EVENT OF A CLAIM


 


As a condition precedent to
the protection afforded by this Policy, the Insured
shall as soon as practicable (but not more than 30 days after the
expiration of the Policy Period or
after the expiration of any applicable extended reporting period), give written
notice to the Underwriters of every Claim first
made against the Insured during
the Policy Period (or any
applicable extended reporting period) as a result of any Professional Liability Incident or General Liability Incident which occurred
after the Retroactive Date and prior to the expiration of the Policy Period. Notice of such Claims should be sent using the attached
Loss Advice Form (Exhibit A).


 


2.                         ASSISTANCE
AND COOPERATION


 


The Insured must do nothing after a loss to
prejudice Underwriters rights.


 


The Insured shall cooperate with Underwriters
and, upon Underwriters’ request, shall assist in the conduct of the Claim and in enforcing any right of
contribution or Indemnity against any person or organization who may be liable
to the Insured with respect to any
Claim which is or may be covered
under this Policy. The Insured shall
attend all hearings and trials and will assist in obtaining witnesses and
securing and giving evidence.


 


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In the event any payment is
made under this Policy, Underwriters will be subrogated to all of the Insured’s rights of recovery against any
person or organization; the Insured will
execute documents and do whatever else is necessary to secure such rights.


 


The Insured shall not admit liability, assume
any obligation or make any payment without the written consent of Underwriters.
Underwriters shall not be liable for any payments made by or on behalf of the Insured prior to written notice of Claim being received by the Underwriters.


 


3.                         OTHER
INSURANCE


 


If other valid and
collectible insurance is available to the Insured
covering a Claim also
covered by this Policy, this Policy shall be in excess of and shall not contribute
with such other insurance. Notwithstanding any “other insurance” provision
contained in any other valid end collectible insurance available to the Insured, the “other insurance” provision
contained herein is controlling, and Underwriters shall not make any payments
under this Policy until the limits of the Insured’s
“other insurance” have been exhausted. Subject to the preceding, the
coverage afforded hereunder is in excess of and shall not contribute with any
other valid and collectible insurance which has been specifically contracted
for by the Insured or another
under any Policy in which the Insured is
a Named or Additional Insured. Nothing
herein shall be construed to make this Policy subject to the terms,
definitions, conditions and limitations of the other insurances.


 


4.                         LEGAL
ACTION AGAINST UNDERWRITERS


 


No person or organization
has the right under this Policy;


 


A.                     to join Underwriters or
their representatives as a party or otherwise bring Underwriters or their
representatives into any proceeding seeking Damages
from any Insured; or


 


B.                       to file suit or
any other proceeding against Underwriters unless there has been full compliance
with all of the terms of this Policy.


 


5.                         FALSE OR
FRAUDULENT CLAIMS


 


If the Insured gives notice of any Claim knowing the same to be false or
fraudulent, this Policy shall become void and all rights hereunder shall be
forfeited by the Insured.


 


6.                         INSPECTION
AND AUDIT


 


Underwriters shall be
permitted, but not obligated, to inspect the insured’s
property, operations and/or records at any reasonable time. Neither
Underwriters’ right to make inspections nor the making thereof or any report
thereon shall constitute an undertaking on behalf of or for the benefit of the Insured to determine or warrant that such
property or operations are safe or healthful or are in compliance with any law,
rule or regulation.


 


Underwriters may examine and
audit the Insured’s books and
records at any time during the Policy Period,
and any extensions thereof, and within three years after the final
termination of this Policy.


 


7.                         CHANGES


 


The terms of this Policy
shall not be waived or changed except by endorsement duly executed by
Underwriters and issued to form a part of this Policy.


 


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8.                         ASSIGNMENT


 


No assignment of interest
under this Policy shall be valid except by endorsement duly executed by
Underwriters and issued to form a part of this Policy.


 


9.                         APPLICATION


 


By acceptance of this
Policy, the Insured agrees that
the statements in the application are his/her representations, that such
representations are accurate and complete, that such representations are
material to the risk undertaken by Underwriters and that this Policy is issued
and continued in force in reliance upon the truth of such representations.


 


10.                  NOTICE OF
CANCELLATION OR NON-RENEWAL


 


It is understood and agreed
that this Policy may be cancelled by Underwriters by mailing to the Insured, at the address shown in the
Declarations, written notice stating when, not less then 30 days thereafter,
cancellation shall be effective. However, in the event of non-payment of
premium by the Insured, this
Policy may be cancelled by Underwriters by mailing notice to the Insured stating when, not less than 10 days
thereafter, cancellation shall be effective. The mailing of notice as aforesaid
by Underwriters shall be sufficient proof of notice and the coverage provided
by this Policy shall end on the affective date and hour of cancellation as
stated in the notice. Mailing of such written notice either by the Insured or by Underwriters shall be
equivalent to delivery.


 


In the event of non-renewal
of this Policy by the Underwriters, they or their legal representative shall
provide the Insured with written
notice of their intent to non-renew at least thirty (30) days in advance of the
expiration date of the Policy Period. Notice
shall be provided via regular U.S. mail to the address shown In Item 1 (b) of
the Declarations.


 


This Policy may be canceled
by the Named Insured by
surrendering it to Underwriters or by mailing to Underwriters written notice
stating when, not less then 30 days, thereafter the cancellation shall be
effective. The time of the surrender or the effective date and hour of
cancellation stated in the notice shall become the end of the Policy Period. If the Named Insured cancels, the unearned premium shall
be computed in accordance with the customary short rate table and procedure. If
Underwriters cancel, unearned premium shall be computed pro rata. Premium
adjustment may be made either at the time cancellation is effected or as soon
as practicable after cancellation becomes effective, but payment or tender of
unearned premium is not a condition of cancellation.


 


11.                  EXTENDED
REPORTING PERIOD


 


A.                     If
this Policy is cancelled or non-renewed by the Named Insured or if Underwriters refuse to renew
this Policy for reasons other than nonpayment of premium or noncompliance with
the terms and conditions of this Policy, the Named Insured shall have the right, upon payment of an additional premium
to purchase an Extended Reporting Period, the terms of which will be determined
at the time it is requested.


 


B.                       Coverage shall
only apply to Claims that are both first made
against the Insured and reported
to Underwriters during the extended reporting period purchased, and which arise
from Professional Services rendered
or General Liability Incidents which
occurred after the Retroactive Date and prior to the effective date of the
extended reporting period purchased.


 


C.                       The quotation
of a different premium, Self-Insured Retention or Limits of Liability for
renewal does not constitute a cancellation or refusal to renew for the purposes
of this Condition.


 


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D.                      As a condition
precedent to the right to purchase the extended reporting period, the total
premium for the Policy must have been paid. The right to purchase the extended
reporting period shall terminate unless written notice, together with full
payment of the premium for the extended reporting period, is received by
Underwriters within 60 days after the effective date of cancellation or, in the
event of a refusal to renew, within 60 days after the Policy expiration date.
If such notice and premium payment is not so given to Underwriters, there shall
be no right to purchase the extended reporting period.


 


E.                        In the event of
the purchase of the extended reporting period, the entire premium therefore
shall be deemed earned at its commencement.


 


F.                        The exercise of
the extended reporting period shall not in any way increase the Underwriters’
Limits of Liability.


 


G.                       The purchase of
an extended reporting period shall not operate to increase the Combined Policy
Aggregate Limit of Liability stated in the Declarations for the Policy Period prior to this extension being
invoked, such Combined Policy Aggregate Limit of Liability as a consequence
shall apply to the expiring Policy Period and
the extended reporting period combined.


 


DEFINITIONS


 


1.                          Advertising Injury means:


 


an injury caused by any of
the following offenses in the advertising of the Insured’s Professional Services as a healthcare provider


 


A                        libel or
slander;


 


B.                       written or
spoken material made public which violates an individual’s right of privacy or
belittles the product or work of others;


 


C.                       unauthorized
faking of advertising ideas or style of doing business: or


 


D.                      infringement of
copyright, title or slogan.


 


2.                          Auto means:


 


a land motor vehicle,
trailer or semi trailer designed primarily for travel on public roads,
including any attached machinery or equipment. Auto does not include “Mobile Equipment’, which is defined to
mean any of the following types of land vehicles and any machinery or equipment
attached thereto.


 


A.                     bulldozers, farm machinery,
forklifts and other vehicles designed for use principally off public roads,


 


B.                       vehicles
maintained for use solely on or next to premises the Insured owns or rents;


 


C.                       vehicles that
travel on crawler treads,


 


D.                      vehicles,
whether self-propelled or not, that are maintained primarily to provide mobility
to permanently mounted:


 


i)                            Power cranes,
shovels, loaders, diggers or drills; or


 


ii)                         road
construction or resurfacing equipment such as graders, scrapers or rollers;


 


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E.                        Vehicles not
described in A, B, C or D above that are not self-propelled and are maintained
primarily to provide mobility to permanently attached equipment of the
following types:


 


i)                            air
compressors, pumps and generators, including spraying, welding, building
cleaning, geophysical exploration, lighting and well servicing equipment; or


 


ii)                         cherry pickers
and similar devices used to raise or lower workers;


 


F.                        Vehicles not
described in A, B, C or D above, that are maintained primarily for purposes
other than the transportation of persons of cargo. However, self propelled
vehicles with the following types of permanently attached equipment are not “mobile
equipment” but will be considered Autos:


 


i)                            Equipment
designed primarily for


(a)                     snow removal:


(b)                    road maintenance but not
construction or resurfacing;


(c)                     street cleaning.


 


ii)                         cherry pickers
and similar devices mounted on automobile or truck chassis and used to raise or
lower workers; and


 


iii)                      air
compressors, pumps and generators, including spraying, welding, building
cleaning; geophysical exploration, lighting and well servicing equipment.


 


3.                          Bodily Injury means:


physical injury, sickness,
disease, mental anguish, mental injury or emotional distress, including death
at any time resulting there from.


 


4.                          Claim means:


any demand for Damages or services first made, in writing,
against the Insured during the Policy Period, or during any applicable
extended reporting period.


 


5.                          Damages means:


a compensatory settlement,
award or judgment which the Insured becomes
legally obligated to pay. Damages include
pre-judgment interest. Damages do
not include:


 


A.                     Defense
Expenses;


 


B.                       punitive or
exemplary Damages, fines or
penalties, or any Damages which
are a multiple of compensatory Damages;


 


C.                       the return or
restitution of fees, compensation, profits, charges and/or expenses paid to the
Insured for services rendered; or


 


D.                      judgments or
awards deemed uninsurable by law.


 


6.                          Defense Expenses means:


 


A.                     all expenses incurred in
defending a Claim, all costs taxed
against the Insured in any suit
and all post-judgment interest which accrues on the entire amount of the
judgment before Underwriters have paid or tendered or deposited in court that
part of the judgment which does not exceed the applicable Limit of Liability of
this Policy.


 


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B.                       premiums on
appeal bonds required in any defended suit. Underwriters, have no obligation to
apply for or furnish an appeal bond. The amount of any appeal band shall not
exceed the applicable Limit of Liability of this Policy; and


 


C.                       all reasonable
expenses, other than loss of earnings, incurred by the Insured at Underwriters’ request and with
Underwriters’ prior agreement.


 


Defense
Expenses do not include any amounts incurred after the Each Claim Limit or the Combined Policy
Aggregate Limit is exhausted by payment of Damages
or Defense Expenses or
both.


 


7.                          General Liability Incident means:


 


an accident which results in
Bodily Injury or Property Damage or a loss which results in Personal Injury or Advertising Injury, neither expected or
intended from the standpoint of the Insured. Ail
Bodily Injury or Property Damage resulting from continuous
or repeated exposure to substantially the same general conditions shall be
considered the result of one General
Liability Incident regardless of the number of locations, Claimants
or Insureds involved.


 


8.                          Impaired Property means tangible property, other than the Insured’s Products or the Insured’s Work, that cannot be used or is
less useful because:


 


A.                     it incorporates the Insured’s Products or the Insured’s Work that is known or thought to
be detective, defective, inadequate or dangerous; or


 


B.                       the Insured has failed to fulfill the terms of
a contract or agreement, if such property can be restored to use by:


 


i)                            the repair,
replacement, adjustment or removal of the Insured’s
Products or the Insured’s work; or


 


ii)                         the Insured’s fulfilling the terms of the
contract or agreement.


 


9.                          Insured means:


 


A.                     the Named Insured, being the entity designated in
item 1 of the Declarations. The Named Insured
shall also include, until such time as they may be sold or otherwise
disposed of or become unaffiliated with the Named Insured:


 


i)                            any additional
entities specified in the Declarations or added by endorsement to this Policy;


 


ii)                         any subsidiary
or owned or controlled companies of the Named Insured
as are in existence at the inception date of this Policy:


 


iii)                      any subsidiary
or owned or controlled company of the Named Insured
created or acquired subsequent to the inception date of this Policy, but coverage hereunder will not
apply:


 


(a)                    to any Claims arising from Professional Services
which were rendered or General Liability
Incidents which occurred prior to the date of such creation or
acquisition; and


 


10














 


(b)                   for a period greater than
thirty days from the date of such creation or acquisition. However, if the
Named Insured shall give
Underwriters’ notice of any such created or acquired subsidiary or owned or
controlled company within the aforesaid period of thirty days and the Named Insured shall


 


1.                          pay any
additional premium, and


2.                          accept such
terms as may be required by Underwriters, then this Policy
shall continue to apply to such subsidiary or owned or controlled company.


 


B.                       any employee of
the Named Insured, but only while
acting within the scope of their duties as such;


 


C.                       any member or
partner of a joint venture or partnership specifically designated in the
Declarations, but only with respect to such member’s or partners liability
arising within the scope of their duties within such designated joint venture
or partnership,


 


D.                      any executive
officer, member of the board of directors, trustees or governors of the Insured, but only while acting within the scope of their
duties as such;


 


E.                        any authorized
student or volunteer of the Insured,
but only while acting within the scope of their duties as such;


 


F.                        any member of a
formal accreditation, standards review or similar professional board or
committee of the Named Insured, or
any employee charged with the duty of executing the directives of such
professional board or committee, or any employee communicating information to
such professional board or committee; but only while the member or employee is
acting within the scope of their duties as such;


 


G.                       any Government
Authority, funding source or institution, but, only in respect of liability
arising out of the operations of the Insured
and upon the specific request of such Government Authority, funding source or
Institution;


 


H.                      any person or
entity to whom the Insured is
contractually obligated, either in writing or verbally, to provide such
coverage as is afforded by this Policy,


 


I.                           any person or
organization having proper temporary custody of the Insured’s property due to the Insured’s death, but only:


 


i)                           with respect to
liability arising out of the maintenance or use of that property; and


 


ii)                        until the Insured’s legal representative has been
appointed.


 


J.                          the Insured’s legal representative if the Insured dies, but only with respect to
their duties as such. That representative will assume both the Insured’s rights and duties under this Policy.


 


10.                    Insured Contract means:


 


A.                     a lease of premises;


 


B.                       a sidetrack
agreement;


 


C.                       an easement or
license agreement in connection with vehicle or pedestrian private railroad
crossings at grade;


 


D.                      any other
easement agreement, except in connection with construction or demolition
operations on or within 50 feet of a railroad;


 


11

















 


E.                        an
indemnification of a municipality as required by ordinance, except in
connection with work for a municipality,


 


F.                        an elevator
maintenance agreement or


 


G.                       that part of
any other contract or agreement pertaining to the Insured’s business under which the Insured assumes the tort liability of another to pay Damages because of Bodily
Injury or Property Damage to
a third person or organization, if the contract or agreement, is made prior to
the Bodily Injury or Property Damage Tort liability means a
liability that would be imposed by law in the absence of any contract or
agreement.


 


An Insured Contract does not include that part
of any contract or agreement:


 


A.                      that
indemnifies an architect, engineer or surveyor for injury or damage arising out
of:


 


i)                           preparing,
approving or failing to prepare or approve maps, drawings, opinions, reports,
surveys, change orders, designs or specifications; or


 


ii)                        giving
directions or instruction, or failing to give them, if that is the primary
cause of the injury or damage:


 


B.                        under which the
Insured, if an architect, engineer
or surveyor, assumes liability for injury or damage arising out of the Insured’s rendering or failing to render Professional Services, including those
listed In IOA immediately above and supervisory, inspection or engineering services;
or


 


C.                        that
indemnifies any person or organization for damage by fire to premises rented or
loaned to the Insured;


 


D.                       that relates to
a project for a public authority, but this exclusion does not apply to a Claim
by the public authority or any other person or organization engaged in the
project; or


 


D.                       that relates to
construction or demolition operations, within 50 feet of any railroad property,
and affecting any railroad bridge or trestle, tracks, road beds, tunnel,
underpass or crossing and which is not a sidetrack agreement.


 


11                       The Insured’s Products means:


 


A.                     any goods or products, other
than real property, manufactured, sold, handled, distributed or disposed of by:


 


i)                            the Insured;


 


ii)                         others trading
under the Insured’s name, and


 


iii)                      a person or
organization whose business or assets the Insured
have acquired; and


 


B.                       Containers
(other than vehicles), materials, parts or equipment furnished in connection
with such goods or products:


 


The Insured’s Products include warranties or
representations made at any time with respect to this fitness, quality,
durability or performance of any of the items included in 11A and B above.


 


The Insured’s Products do not include vending
machines or other property rented to or located for the use of others but not
sold


 


12

















 


12.                    The Insured’s Work means:


 


A.                     work or operations performed
by the Insured or on the Insured’s behalf; and


 


B.                       materials,
parts or equipment furnished in connection with such work or operations.


 


The Insured’s Work includes warranties or
representations made at anytime with respect to the illness, quality,
durability or performance of any of the items included in 12 A or B above.


 


13.                    Loading or Unloading means
the handling of property:


 


A.                     after it is moved from the
place where it is accepted for movement into or onto an aircraft, watercraft or
Auto;


 


B.                       while it is in
or on an aircraft, watercraft or Auto; or


 


C.                       while it is
being moved from an aircraft, watercraft or Auto
to the place where it is finally delivered;


 


but Loading or Unloading does not include the movement of property by means
of a mechanical device, other than a hand truck, that is not attached to the
aircraft, watercraft or Auto.


 


14.                    Personal Injury means injury, other than Bodily Injury, caused by any of the following


 


A.                     False arrest, detention or
imprisonment;


 


B.                       malicious
prosecution;


 


C.                       wrongful entry
or wrongful eviction;


 


D.                      libel or
slander or


 


E.                        written or
spoken material made public which violates an individual’s right of privacy.


 


15.                    Policy Period means;


the period from the
inception date specified in Item 2 of the Declarations to the expiration date
specified in Item 2 of the Declarations, or any other termination data effected
in accordance with the terms of this Policy. Despite the activation of an
extended reporting period, this Policy will not provide coverage for any Professional Liability Incident or General Liability Incident that occurs
after the expiration of the Policy Period.


 


16.                    Pollutants means:


any solid, liquid, gaseous
or thermal irritant or contaminant, including but not limited to smoke, vapor,
soot, fumes, acids, alkalis, chemicals and waste. Waste includes materials to
be recycled, reconditioned or reclaimed.


 


17.                    A.                     Products-Completed
Operations Hazard includes all Bodily Injury
and Property Damage occurring away from
premises the Insured owns or rents
and arising out of the Insured’s Products or
the Insured’s Work except:


 


i)                            products that
are still in the Insured’s
physical possession; or


 


ii)                         work that has
not yet been completed or abandoned.


 


13

















 


B.                       The Insured’s Work will be deemed completed at
the earliest of the following times:


 


i)                            when all of the
work called for in the Insured’s contract
has been completed; or


 


ii)                         when all of the
work to be done at a job site has been completed if the Insured’s contract calls for work at more
than one site; or


 


iii)                      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,
maintenance, correction, repair or replacement but which is otherwise
completed, will be treated as completed.


 


C.                       This hazard does
not include Bodily Injury or Property Damage arising out of:


 


i)                            the
transportation of property, unless the injury of damage arises out of a
condition in or on a vehicle created by the Loading
or unloading of it


 


ii)                         the existence
of tools, installed equipment or abandoned or unused materials; or


 


iii)                      products or
operations for which the classification in this Policy includes products or
completed operations.


 


18.                    Professional Liability Incident means:


any act, error or omission
in the rendering of, or failure to render, Professional
Services by the Insured. All related act, errors or emissions
in the rendering of, or failure to render, Professional
Services to any one patient shall be considered one Professional Liability Incident. If a
Professional Liability Incident arises from a series of
related medical services, such Professional
Liability Incident will be deemed to have happened at the time of
the first act, error or omission in respect of which the Insured may be legally obligated to pay Damages. All acts, errors or omissions in the rendering of, or failure to
render, Professional Services to a
woman, her fetus/fetuses and child/children during the course of or related to
prenatal care, labor, delivery and the post delivery period shall be considered
one Professional Liability Incident.


 


19.                    Professional Services means services performed by
the Insured in the treatment
and/or care of any client, resident or patient, and shall include:


 


A.                     medical, surgical,
counseling, therapeutic or other Professional
Services provided to any person’


 


B.                       the furnishing
of medical or surgical supplies and appliances, medication, blood and blood
products and food and beverages in connection with such services;


 


C.                       education and
training conducted by the Insured which
results in Injury caused or alleged to have been caused by a deficiency or
defect in the education or training of any person; and


 


D.                      research and
development conducted by the Insured which
results in injury caused or alleged to have been caused by a deficiency or
defect in the conduct or the reported results of such research or development.


 


20.                    Property Damage means;


A.                     physical injury to tangible
property, including all resulting loss of use of such property and


B.                       loss of use of
tangible property which has not been physically damaged or destroyed.


 


14

















 


21.                    Sexual Misconduct means sexual intimacy, sexual acts, sexual
abuse, sexual molestation, sexual harassment, sexual exploitation, sexual
assault, sexual battery or acts in furtherance thereof, whether under the guise
of treatment or not, and whether consensual or not.


 


EXCLUSIONS


This Policy does not apply to any Claim arising out of, based upon, relating
to or involving:


 


1.                          Any
Professional Liability Incident or General Liability Incident which:


 


A.                     happened prior to the
Retroactive Date or after the expiration of the Policy Period;


 


B.                       resulted in a Claim that was made against the Insured after expiration of the Policy Period (or any applicable extended
reporting period) or was reported to Underwriters more than 30 days after
expiration of the Policy Period (or
after the expiration of any applicable extended reporting period);


 


C.                       was reported or
should have been reported to any program of insurance or self insurance in
effect prior to the Inception date of this Policy; or


 


D.                      is covered
under any program of insurance or self-insurance in effect prior to the
inception date of this Policy.


 


2.                          With respect to
Professional Liability (Section 1), all Claims
based upon, relating to or arising out of any General Liability
Incident.


 


3.                          With respect to
General Liability (Section 2),
all Claims based upon, relating to
or arising out of any Professional Liability Incident


 


4.                          Bodily Injury or Property Damage
reasonably expected or intended from the standpoint of the Insured.  This exclusion does
not apply to Bodily Injury that is
a reasonably expected consequence of appropriate treatment or resulted from the
use of reasonable force to protect persons or property.


 


5.                          Any dishonest,
unlawful, criminal, fraudulent or malicious act, error or omission by any Insured, including the willful violation of any law, statute or ordinance
committed by or with knowledge of any Insured.


 


6.                          The transfer of
a patient in violation of any statute or regulation restricting patient
transfers or regulating the circumstances under which patient transfers may be
effected.


 


7.                          The alteration,
modification or destruction of medical records


 


8.                          Sexual
Misconduct.


Coverage is excluded for any
sexual act, including without limitation sexual intimacy (even if consensual), sexual contact,
sexual advances, requests for sexual favors, sexual molestation, sexual
assault, sexual abuse, sexual harassment, sexual exploitation or other verbal
or physical conduct of a sexual nature. However, this exclusion does not apply
to:


 


A.                     Any Specific Individual Insured who allegedly committed such sexual misconduct, unless it is judicially determined that the Specific Individual Insured committed the sexual misconduct. If it is judicially determined that the Specific Individual Insured committed the sexual misconduct underwriters will not pay
any damages.


 


15

















 


B.                       Any other Insured, unless that Insured:


 


i)                            knew or should
have known about the sexual misconduct
allegedly committed by the Specific Individual Insured, but failed to prevent or stop it; or


 


ii)                         knew or should
have known that the Specific Individual Insured who
allegedly committed the sexual misconduct
had a prior history of such sexual
misconduct.


 


As used in this exclusion,
Specific Individual Insured
includes employees and authorized volunteer workers while performing duties
related to the conduct of your business.


 


9.                          Discrimination,
humiliation, harassment or misconduct based on age, race, creed, color, gender,
sexual preference, disability, national origin, physical or mental disability,
illness or positive test for communicable diseases. However this exclusion does
not apply to any act or alleged discrimination arising out of the provision of Professional Services.


 


10.                    Any obligation of any Insured under any workers’ compensation,
unemployment compensation disability benefits law or any similar law.


 


Any dispute between a
present or former employee and any Insured
with regard to the employment relationship, the termination of that
relationship or such Insured’s provision or termination
of employee benefits, including but not limited to Claims for wrongful termination, harassment or discrimination.


 


12.                    Any Claim made by any Insured against any other Insured under this Policy, but this
Exclusion shall not apply to injury suffered by an Insured
as a recipient of Professional Services
rendered, or which fail to be rendered, by another Insured.


 


13.                    Any Claim brought by or on behalf of any
individual who is receiving, or has received, Professional
Services from the Insured
against any other individual who is receiving, or has received, Professional
Services from the Insured.


 


14.                    The rendering or failure to
render Professional Services in a
state while the Insured’s license is under
suspension or has been restricted, revoked, surrendered or otherwise
terminated.


 


15.                    Bodily Injury for which any Insured
may be held liable by reason of:


 


A.                     causing a contributing to the
intoxication of any person;


 


B.                       furnishing
alcoholic beverages to a person under the legal drinking age or under the
influence of alcohol: or


 


C.                       any statute,
ordinance or regulation relating to the sale, gift, distribution or use of
alcoholic beverages.


 


16.                    Bodily Injury arising out of corporal punishment by the Insured.


 


16

















 


17.                    Any liability of the Insured based in whole or in part on breach
of promise, contract, warranty, implied warranty or misrepresentation,
including any guarantees of the results of the Insured’s Professional Services.


 


18.                    Any vicarious liability of
the Insured for an individual who
is not an Insured.


 


19.                  Bodily
Injury or Property Damage arising
out of athletic events sponsored by the Insured
except those athletic events which are directly related to the
treatment or care of the Insured’s patient/clients
and which are limited to the Insured’s patient/clients,
employees and volunteers.


 


20.                    The Insured’s actual or alleged involvement in
any:


 


A.                     anti-trust law violation;


 


B.                       agreement or
conspiracy to restrain trade or compete unfairly,


 


C.                       infringement of
trademark, trade name, patent or copyright; or


 


D.                      price-fixing,


 


21.                    Bodily Injury or Property Damage
due to war, whether or not declared, or any act or condition
incident to war. War includes civil war, insurrection, rebellion or revolution.


 


22.                    Bodily Injury or Property Damage
due to an act of terrorism. For the purposes of this exclusion, an “act
of terrorism” means an act, including but not limited to the use of force or
violence and/or the threat thereof, by any person or group(s) of persons,
whether acting alone or an behalf of or in connection with any organization(s) or
government(s), committed for political, religious, ideological or similar
purposes, including the intention to influence any government and/or put the
public, or any section of the public, in fear.


 


23.                    Damages claimed for any loss, cost or expense incurred by
the Insured
or others for the loss of use, withdrawal, recall, inspection,
repair, replacement, adjustment, removal or disposal of:


 


A.                     The Insured’s Products;


 


B.                       The Insured’s Work or


 


C.                       Impaired Property;


 


If
such product, work or property is withdrawn or recalled from the market
or from use by any Insured or any
person or organization because of a known or suspected defect deficiency,
inadequacy or dangerous condition in it.


 


24.                    Acquired Immune Deficiency
Syndrome (AIDS), meaning the potential or actual transmission of or exposure to
Human Immunodeficiency Virus (HIV), AIDS-Related Complex (ARC), Acquired Immune
Deficiency Syndrome (AIDS), Hepatitis or any other infectious disease or any
complex or syndrome related thereto, or the use or misuse of confidential
Information relating to HIV, ARC, AIDS, hepatitis or any other infectious
disease, including the failure to disclose the health status of any Insured.


 


25.                    Property Damage to any
Insured’s Products.


 


17

















 


26.                    With respect to the
Professional Liability (Section 1) portion of this Policy, any Advertising Injury, Personal Injury or
Property Damage.


 


27.                    Bodily Injury or Property Damage
for which the Insured is
obligated to pay Damages by reason of the assumption of
liability in a contract or agreement. This exclusion does not apply to
liability for Damages:


 


A.                     assumed in a contract or
agreement that is an Insured Contract provided
the Bodily Injury or Property Damage occurs subsequent to the
execution of the contract or agreement: or


 


B.                       that the Insured would have in the absence of the
contract or agreement.


 


28.                    Property Damage to  any Insured’s Work arising out of it or any
part of it and included in the Products-Completed Operations Hazard.


 


This exclusion does not
apply if the damaged work or the work out of which the damage arises was
performed on any Insured’s behalf
by a subcontractor.


 


29.                    Property Damage to Impaired Property or property
that has not been physically injured, arising out of


 


A.                     a defect, deficiency,
inadequacy or dangerous condition in any Insured’s
Products or Insured’s Work; or


 


B.                       a delay or
failure by any Insured or anyone
acting on any Insured’s behalf to
perform a contract or agreement in accordance with its terms.


 


This exclusion does not
apply to the loss of use of other property arising out of sudden and accidental
physical injury to any Insured’s Products or
any Insured’s Work after it has
been put to its intended use.


 


30.                    Property Damage to:


 


A.                     property owned,
rented or occupied by any Insured;


 


B.                       premises sold
or abandoned by any Insured;


 


C.                       property loaned
to any Insured;


 


D.                      property in the
care, custody or control of any Insured;


 


E.                        property on
which any Insured or any
contractors or subcontractors working directly or indirectly on behalf of any Insured are performing operations, if the Property Damage arises out of those
operations; or


 


F.                        property that
must be restored, repaired or replaced because work was incorrectly performed
by any Insured.


 


Paragraph A of this
exclusion does not apply to Property Damage to
premises rented to any Insured, if
such Property Damage arises out of
fire. A separate limit of insurance applies to this coverage and described in
the Declarations.


 


Paragraph B of this
exclusion does not apply if the premises are any Insured’s Work and were never occupied; rented or held for
rental by any Insured hereunder.


 


18

















 


Paragraphs C, D, E &
F of this exclusion do not apply to liability assumed under a sidetrack
agreement.


 


Paragraph F of this
exclusion does not apply to Property Damage included
in the Products-Completed Operations Hazard.


 


31.                    Personal injury or
Advertising Injury.


 


A.                     arising out of oral or
written publication of material, if done by or at the direction of any Insured with knowledge of its falsity,


 


B.                       arising out of
oral or written publication of materials whose first publication took place
before the beginning of the Policy Period;


 


C.                       arising out of
the willful violation of a penal statute or ordinance committed by or with the
consent of the Insured, or


 


D.                      or which the Insured has assumed liability in a contract
or agreement. This exclusion does not apply to liability for Damages that the Insured would have in the absence of the contract or
agreement.


 


32.                    Advertising Injury arising out of


 


A.                     breach of contract, other
than misappropriation of advertising ideas under an implied contract,


 


B.                       the failure of
goods, products or services to conform with advertised quality of performance;


 


C.                       the wrong
description of the price of goods, products or services; or


 


D.                      an offense
committed by an Insured whose
business is advertising, broadcasting, publishing or telecasting


 


33.                    Bodily Injury or Property Damage
related to the ownership, maintenance, use or entrustment to others
of any aircraft, Auto or
watercraft owned or operated by or rented or loaned to any Insured. Use includes operation and Loading or Unloading.


 


34.                    Bodily Injury or Property
Damage arising out of


 


A.                     the transportation of Mobile
Equipment by an Auto owned or
operated by or rented or loaned to any Insured;
or


 


B.                       the use of
Mobile Equipment in, or while in practice or preparation for, a prearranged
racing, speed or demolition contest or in any stunting activity.


 


35.                    A.                     Bodily injury or Properly Damage
arising out of the discharge dispersal, release or escape of smoke,
vapors, soot, fumes, acids, alkalis, toxic chemicals, liquids or gases, waste
materials or other irritants, contaminants or Pollutants
into or upon land, the atmosphere or any water course or body of
water, whether above or below ground. It is understood and agreed that the
intent and affect of this exclusion is to delete from any and all coverages
afforded by this Policy any Claim, action, judgment liability,
settlement defense or expenses (including any loss, cost or expense arising out
of any governmental direction or request that the Insured or any other party test for, monitor, clean up,
remove, contain, treat detoxify or neutralize Pollutants)
in anyway arising out of such actual or threatened discharge, dispersal,
release or escape whether such results from the Insured’s activities or the activities of others and whether
or not such is sudden or gradual and whether or not such is accidental,
intended, foreseeable, expected, fortuitous or inevitable, and wherever such
occurs; or


 


19

















 


B.                       Bodily
Injury or Property Damage arising out of any
governmental direction or request that the Insured or any
other party test for, monitor, clean up, remove, contain, treat, detoxify,
neutralize Pollutants.


 


36.                    Bodily Injury or Property
Damage resulting from exposure to or the manifestation, release,
dispersal, seepage, migration, discharge, appearance, presence, reproduction or
growth of mold, mildew, spores, mycotoxins, fungi, organic pathogens or other
micro organisms of any type, nature or description. This Policy expressly
excludes:


 


A.                     any cost, expanse or charge
to test, monitor, clean up, remediate, remove, contain, treat, detoxify,
neutralize, rehabilitate or in any way respond to or assess the affects of
mold, mildew, spores, mycotoxins, fungi, organic pathogens or other micro
organisms of any type, nature or description; and


 


B.                       any costs,
expense, charge, fine or penalty, incurred, sustained or imposed by order,
direction, request or agreement of any court, governmental agency or any civil,
public or military authority


 


With respect to this
exclusion, the term ‘organic pathogens” means any organic irritant or
contaminant, including but not limited to mold, fungus, bacteria, virus or
their byproducts, such as mycotoxins, mildew or biogenic aerosol. “Organic
pathogens” include but are not limited to Aspergillus, Penicillium,
Stachybotrys Chartarum, Stachybotrys Atra, Trichodema and Fusarium Memnoniella.


 


37.                    Bodily Injury or Property
Damage arising out of asbestos or asbestos containing materials
including but not limited to:


 


A.                     inhaling, ingesting or
physical exposure to asbestos or goods or products containing asbestos; or


 


B.                       the use of
asbestos in constructing or manufacturing any goods; products or structures; or


 


C.                       the removal of
asbestos from any goods, products or structures, or the manufacture,
encapsulation, transportation, storage, handling, distribution, sale,
application, consumption or disposal of lead paint or goods or products
containing asbestos; or


 


D.                      any
governmental direction or request that the Insured or any other party, test
for, monitor, clean up, remove, contain, treat, detoxify or neutralize asbestos
or asbestos containing products.


 


38.                    Bodily Injury or Property
Damage arising out of lead paint including but not limited to:


 


A.                     inhaling, ingesting or
physical exposure to lead paint or goods or products containing lead paint; or


 


B.                       the use of lead
paint in constructing or manufacturing any goods, products or structures; or


 


C.                       the removal of
lead paint from any goods, products or structures; or the manufacture,
encapsulation, transportation, storage, handling, distribution, sale,
application, consumption or disposal of lead paint or goods or products
containing lead paint; or


 


D.                      any
governmental direction or request that the Insured or any
other party, test for, monitor, clean up, remove, contain, treat, detoxify or
neutralize lead paint or materials containing lead paint.


 


39.                    Bodily injury arising out of silica, crystalline silica or
resulting in silicosis.


 


20














 


40.                    A.                     The Insured’s liability:


 


i)                            with respect to
which an Insured under this Policy
is also an insured under a nuclear
energy liability Policy issued by the 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 termination upon exhaustion of its limit of
liability; or


 


ii)                         resulting from
the hazardous properties 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 indemnity from
the United States of America, or any agency thereof, under any agreement
entered into by the United States of America, or any agency thereof, with any
person or organization.


 


B.                       The Insured’s liability for:


 


i)                            the nuclear
material


 


(a)                    at any nuclear facility
owned by, or operated by or on behalf of the Insured;
or


 


(b)                   discharged or dispersed
there from;


 


ii)                         the nuclear
material contained in spent fuel or waste at any time possessed, handled, used,
processed, stored, transported or disposed of by or on behalf of the Insured;


 


iii)                      liability
arising out of the furnishing by the Insured
of services, materials, parts or equipment in connection with the planning,
construction, maintenance, operation or use of any nuclear facility, but if
such facility is located within the United States of America, its territories
or possessions or Canada, this Exclusion 40 B. applies only to injury to or
destruction of property at such nuclear facility.


 


C.                       For the
purposes of this exclusion


 


i)                            “Hazardous
Properties” includes radioactive, toxic or explosive properties;


 


ii)                         “Nuclear
Material’ means source material, special nuclear material or by product
material;


 


iii)                      Source Material’,
“Special Nuclear Material” and “By-Product Material” have the meanings given
them in the Atomic Energy Act of 1954 or in any law amendatory thereof;


 


iv)                     “Spent Fuel’ means any fuel
element or fuel component, solid or liquid, which has been used or exposed to
radiation in a nuclear reactor;


 


v)                        “Waste” means
any waste material:


 


(a)                    containing by-product material;
and


 


(b)                   resulting from the operation
by any person or organization of any nuclear facility’ included within the
definition of “Nuclear Facility” under paragraph (i) or (ii) thereof,


 


21

















 


vi)    “Nuclear Facility” means:


 


(a)                    any nuclear reactor;


 


(b)                   any equipment or device
designed or used for;


 


i)                            separating the
isotopes of uranium or plutonium


 


ii)                         processing or
utilizing spend fuel


 


iii)                      handling,
processing or packaging waste


 


iv)                     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 located consists of or contains more than 25 grams of
plutonium or uranium 233 or any combination thereof, or more than 250 grams of
uranium 235; or


 


v)                        any structure,
basin, excavation, premises or place prepared or used for the storage or
disposal of waste and includes the site an which any of the foregoing is
located, all operations conducted on such site and all premises used for such
operations; and


 


vii)                  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. With
respect to injury to or destruction of property, the word “Injury” or “Destruction”
includes all forms of radioactive contamination of property.


 


22

















 


Exhibit A - Loss Advice Form


 


	
  I.

  	
  INSURED
  DATA

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Business name and address:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Phone #

  	
   

  	
   

  	
  Cell Phone #:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Fax # 

  	
   

  	
   

  	
  Email:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Policy Number:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Policy Period:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Policy Limit:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Deductible:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  II.

  	
  PATIENT DATA

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Patient Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Age/Date of Birth:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Sex:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Occupation/employer:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Marital Status:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Dependents, including
  children’s ages:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Date of Treatment or
  incident:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Location of treatment or
  incident:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Nature of treatment
  provided:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  III.

  	
  BASIS FOR
  REPORTING

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Unexpected outcome

  	
   

  	
   

  
	
   

  	
  Patient/family grievance

  	
   

  	
   

  
	
   

  	
  Medical record request
  (please enclose)

  	
   

  	
   

  
	
   

  	
  Written demand for
  compensation (please enclose)

  	
   

  	
   

  
	
   

  	
  Notice of Intent (please
  enclose)

  	
   

  	
   

  
	
   

  	
  Lawsuit (please enclose)

  	
  Date served:

  	
   

  	
   

  
	
   

  	
  Other (please specify)

  	
   

  	
   

  
																				



 


23

















 


IV.                   INCIDENT
NARRATIVE


 


Please provide a detailed
description of the incident, including dates/times and the identities of all
other healthcare providers involved. Please attach additional papers as needed.


 


 


 


V.                       INJURY/DAMAGES


 


Please provide all available
information regarding the injury/damages suffered by the patient, his/her
current condition and likely future course. Please attach additional papers as
needed.


 


 


 


 


	
  Complete By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  
				



 


Please enclose with this
form a copy of the Declarations page for your Policy and a complete copy
of your treatment records for this patient. Please retain a copy of this form,
as well as all other materials generated in connection with this loss, in a
file separate from your treatment records for the patient.


 


24

















 


ENDORSEMENT
#1 - TOTAL MOLD, MILDEW OR OTHER FUNGI ENDORSEMENT


 


I.                            Notwithstanding
any provision to the contrary within the Policy to which this endorsement forms
a part, or within any other endorsement which forms a part of this Policy, this
Policy shall not apply to any claims or
claims directly or indirectly
arising out of, relating to, or in connection with exposure to or the
manifestation, release, dispersal, seepage, migration, discharge, appearance,
presence, reproduction or growth of mold, mildew, spores, mycotoxins, fungi,
organic pathogens or other micro organisms of any type, nature or description.
Such claim or claims are excluded regardless of whether they arise in
connection with:


 


(1)                    Personal Injury;


 


(2)                    Property Damage;


 


(3)                    Advertising Injury; or


 


(4)                    Any injury caused by a  Professional Liability
Incident.


 


II.                        There shall be
no obligation to defend the Insured against
any claim or claims excluded by this endorsement regardless of whether the
allegations forming the basis of the claim or claims are groundless, false or
fraudulent.


 


III.                    This Policy expressly excludes:


 


(1)                    any cost, expense or charge
to test, monitor, clean up, remediate, remove, contain, treat detoxify,
neutralize, rehabilitate, or in any way respond to or assess the effects of
mold, mildew, spores, mycotoxins, fungi, organic pathogens or other micro
organisms of any type, nature or description; and


 


(2)                    any cost, expense, charge,
fine or penalty, incurred, sustained or imposed by order, direction, request or
agreement of an court, governmental agency, or any civil, public or military
authority.


 


IV.                    This exclusion shall not
apply to any claim or claims directly or indirectly arising out
of, relating to, or in connection with the Insured’s use
of mold, mildew, spores, mycotoxins, fungi, organic pathogens or other micro
organisms of any type, nature or description in connection with the rendering
of Professional Services.


 


V.                        The following
definition is to be applied to this exclusion:


 


(1)                    The term “organic pathogens”
means any organic irritant or contaminant, including but not limited to mold; fungus,
bacteria, virus, or their byproducts such as mycotoxins, mildew, or biogenic
aerosol. “Organic pathogens” include but are not limited to Aspergillus,
Penicillium, Stachybotrys Chartarum, Stachybotrys Atra, Trichodema, and
Fusarium Memnoniella.


 


25

















 


ENDORSEMENT #2 - ASBESTOS EXCLUSION ENDORSEMENT


 


In consideration of the
premium charged for this Policy, it is hereby understood and agreed that this
Policy does not cover any claims
whatsoever arising directly or indirectly out of, or resulting from or in
consequence of, or in any way involving asbestos, or any materials containing
asbestos in whatever form or quantity.


 


26

















 


ENDORSEMENT
#3 - CLASS ACTION EXCLUSION ENDORSEMENT


 


It is hereby understood and
agreed that this Policy does not cover any damages
or defense expenses whatsoever
arising directly or indirectly out of, or resulting from or in consequence of,
or in anyway involving any Class Action.


 


The term ‘Class Action’
as used in the above exclusion, shall mean any proceeding brought or
maintained:


 


(1)                     to certify any litigation as
a class action;


 


(2)                     by or on behalf of five or
more natural persons, whether or not such natural persons are represented by
one or more legal counsel;


 


(3)                     by or on behalf of one to
four natural persons if any of such natural persons are making a pattern and
practice or systemic wrongful act allegation and are seeking monetary relief on
behalf of a class or group of complainants in order to resolve such proceeding,
whether or not such natural persons are represented by one or more legal
counsel; or


 


(4)                     by a governmental entity,
department or agency making a pattern and practice or systemic wrongful act
allegation or seeking monetary relief on behalf of a class or group of
complainants In order to resolve such proceeding.


 


27

















 


ENDORSEMENT #4 - BIOLOGICAL TERRORISM EXCLUSION ENDORSEMENT


 


Notwithstanding any
provision to the contrary within this insurance or any endorsement thereto it
is agreed that this Policy excludes any claims directly or indirectly arising
out of, contributed to or caused by, or resulting from or in connection with
any act of biological terrorism (as defined below) regardless of any other
cause or event contributing concurrently or to any other sequence to the loss.


 


For the purpose of this
endorsement:


 


“Biological” agent shall
mean any pathogenic (disease producing) microorganism(s) and/or
biologically produced toxin(s) (including genetically modified organisms
and chemicaliy synthesized toxins) which cause illness and/or death in humans,
animals or plants.


 


If the Underwriters allege,
that by reason of this exclusion any loss is not covered by this Policy the burden
of proving the contrary shall be upon the Insured.


 


28

















 


ENDORSEMENT
#5 - WAR AND TERRORISM EXCLUSION ENDORSEMENT - NMA2918 AMENDED


 


Notwithstanding any
provision to the contrary within this Policy or any endorsement thereto it is
agreed that this Policy excludes damages
and damage expenses, of any nature
directly or indirectly caused by, resulting from or in connection with any of
the following regardless of any other cause or event contributing concurrently
or in any other sequence to the loss;


 


(1)                     war, invasion, acts of
foreign enemies, hostilities or warlike operations (whether war be declared or
not), civil war, rebellion, revolution, insurrection, civil commotion assuming
the proportions of or amounting to an uprising, military or usurped power, or


 


(2)                     any act of
terrorism.


 


For the purpose of this
endorsement an act of terrorism means an act, including but not limited to the
use of force or violence and/or the threat thereof, of any person or group(s) of
persons, whether acting alone or on behalf of or in connection with any
organization(s) or government(s), committed for political, religious,
ideological or similar purposes including the intention to influence any
government and/or to put the public, or any section of the public, in fear:


 


This endorsement also
excludes damages and damage expenses, directly or indirectly
caused by, resulting from or in connection with any action taken in
controlling, preventing, suppressing or in anyway relating to (1) and/or (2) above.


 


If the Underwriters allege
that by reason of this exclusion, any damages
or damage expenses are not covered
by this Policy, the burden of proving the contrary shall be upon the insured.


 


In the event any portion of
this endorsement is found to be invalid or unenforceable, the remainder shall
remain in full force and effect.


 


29

















 


ENDORSEMENT
#6 - ABSOLUTE SEEPAGE AND POLLUTION EXCLUSION ENDORSEMENT


 


This Policy excludes all claims as a result of:


 


1)                         any liability
arising out of the actual, alleged or threatened discharge, dispersal, release
or escape of ‘Pollutants’, but
this Exclusion shall not apply to Personal
Injury sustained by any Patient,


 


2)                         any liability
to test for, monitor, clean-up, remove, contain, treat, detoxify or neutralize “Pollutants”,  whether or not any
of the foregoing are or should be performed by the Insured or by others;


 


The word ‘Pollutants’,  wherever used in
this Exclusion, means any solid, liquid, gaseous or thermal irritant or
contaminant, including smoke, vapour, soot, fumes, acids, alkalis, chemicals
and waste. Waste includes material to be recycled, reconditioned or reclaimed


 


30














 


ENDORSEMENT #7 - SILICA EXCLUSION ENDORSEMENT


 


This policy does not apply
to


 


1)                         Bodily Injury, Property Damage,  potential Bodily Injury,  or personal and Advertising Injury arising in
whole or in part directly or indirectly, out of “silica”, including but not
limited to:


 


a)                        inhaling,
ingesting or physical exposure to “silica” directly or through any goods,
products, structures, real estate or land containing “silica”; or


 


b)                       The use or
presence of “silica” in any process or operation of any type, including but not
limited to construction, manufacturing, sandblasting, cleaning, drilling,
farming or mining; or


 


c)                        The use or
presence of “silica” in any good, product, structure, real estate or land, or
any component part of any good, product, structure, real estate or land; or


 


d)                       The
manufacture, sale, transportation, handling, storage or disposal or “silica” or
any goods, products, structures, real estate or land containing “silica”, or


 


2)                         any claim or
suit arising out of or related to any disease actually or allegedly caused by,
contributed to or aggravated by “silica”, including but not limited to
silicosis, chronic silicosis, accelerated silicosis, acute silicosis,
conglomerate silicosis, any Auto-immune disorder, tuberculosis,
silicoproteinosis, cancer, scleroderma, emphysema, pneumoconiosis, pulmonary
fibrosis, progressive massive fibrosis, any lung disease or any other ailment
actually or allegedly caused by, contributed to or aggravated by ‘silica’; or


 


3)                         any costs of
medical or other testing, monitoring or diagnosis arising from or related to
any actual, alleged, threatened or feared Bodily
Injury, Property Damage, potential Bodily
Injury or personal and Advertising
Injury arising in whole or in part, directly or indirectly, out of ‘silica’;
or


 


4)                         any costs of
investigations, feasibility studies, cleaning, removal or remediation of the
actual or alleged presence of “silica” in or on any goods, products structures,
real estate or land.


 


“Silica” means silica in any
form and any of its derivatives, including but not limited to silica dust,
silicon dioxide (SiO2), crystalline silica, quartz, or non-crystalline
(amorphous) silica.


 


For the purposes of this
endorsement only, “potential Bodily Injury” includes
but is not limited to any alleged emotional or mental distress, risk of future
disease, fear of contracting any disease, and ail costs of medical monitoring
for any disease arising from or related to exposure to “silica”.


 


This exclusion applies
regardless of whether any other cause or event contributed or is alleged to
have contributed to any actual or alleged Bodily
Injury,  potential Bodily Injury, Property Damage or personal Injury and Advertising Injury in any way or at any
time.


 


31

















 


ENDORSEMENT
#8 - MINIMUM PHYSICIANS LIMITS ENDORSEMENT


 


All physicians employed or
contracted by the Insured are to
maintain minimum Professional Liability limits of $250,000 each claim /
$750,000 aggregate or so deemed.


 


32

















 


ENDORSEMENT
#9 - DEFINITION OF RELATED CLAIMS ENDORSEMENT


 


Related
Claims means all claims based
on, arising out of, directly or indirectly resulting from, in consequence of,
or in any way involving the same related facts, circumstances, situations, transactions
or events or the same or related series of facts, circumstances, situations,
transactions or events, whether related logically, causally or in any other
way.


 


33

















 


ENDORSEMENT
#10 - RELATED ACTS DEEMED SINGLE ACT ENDORSEMENT


 


1.                          With regard to
Professional Liability Claims, all
damages arising from wrongly
calibrated equipment and for one specific individual performing the same
specific procedure incorrectly every time, are considered to arise out of a
single Professional Liability Incident. Such
Professional Liability Incident will
be deemed to have first taken place at the time the first claim seeking such damages is made and reported accordance
with the Reporting and Claims Handling Condition as attached.


 


2.                          With regard to
General Liability Claims all damages arising from the same or related
accidents, acts, offenses, publications or general conditions are considered to
arise out of a single Occurrence, regardless of the frequency or repetition thereof,
the type of damage at issue, or the number of claimants. Such Occurrence will
be deemed to have first taken place at the time the first claim seeking such damages is made and reported accordance
with the Reporting and Claims Handling Condition as attached.


 


For 1 and 2 above claims
will be restricted to the same policy period and
the date the claim is made is the
date that will be used for triggering coverage for all subsequent claims arising out of the same circumstance, taking into
account that a batch be identified within the policy or grace periods.


 


34

















 


ENDORSEMENT
#11 - REPORTING AND CLAIMS HANDLING CONDITION ENDORSEMENT


 


As a condition of this
policy the Insured must comply
with the claims reporting and
handling requirements of this Policy.


 


1.                         Notice


 


(A)                Loss Summaries Bordereau


 


Subject
always to the terms, Declarations, Insuring Agreements, Definitions,
Exclusions, this Reporting and Claims Handling Condition and Other Conditions
of this Policy, to effect coverage under this Policy in respect of
any Claim, and allow for the
reduction or exhaustion of the applicable self insured retention, written
notice of such Claim should be
sent, by registered or certified mail, during the period of this Policy, but in no event later than sixty days after the
expiration date of this Policy.


 


Notice of such Claims should be sent, using a Loss
Summaries Bordereau to the Underwriter.


 


The Insured shall submit a supplemental Loss
Summaries Bordereau to Underwriters annually thereafter, reflecting new
information, or the lack thereof, until all liability under this Policy has
been satisfied.


 


If the Insured have exercised their right to the
Extended Reporting Period, as provided for by the Conditions of the Original Policy,
then such written notice must be sent prior to the expiration of such Extended
Reporting Period.


 


In the event that such
written notice is sent, as aforesaid, within such period of sixty days after
the expiration date of this Policy, or during the Extended Reporting Period,
such notice shall be deemed to have been sent on the last day of the period of
this Policy.


 


(B)                  Individual Loss Advice Forms


 


In addition to the written
notice of any such Claim, as
specified in the preceding paragraphs, the Insured
shall promptly submit to Underwriters detailed written Information
regarding each Claim that meets
one or more of the following criteria during the period of this Policy:


 


(i)                        those reserved
by the Insured, or any
Underwriter, for an amount equal to or greater than fifty percent of the Self
insured retention applicable to such Claim;


 


(ii)                     those involving any of the
following injuries or omissions of which the Insured
becomes aware:


 


a)                        death,


b)                       brain damage or
neurological deficit,


c)                        paralysis or nerve
injury


d)                       total or
partial loss of limb(s), or loss of the use of limb(s),


e)                        impairment or
loss of sight, hearing, taste, touch or smell,


f)                          failure to
diagnose resulting in radiation therapy, chemotherapy or other continuous
treatment


g)                       Human Immuno
Deficiency Virus (HIV), Acquired Immune Deficiency Related Complex (ARC),
Acquired Immune Deficiency Syndrome (AIDS) or any related virus, complex or
syndrome,


 


(iii)                  those about which the Insured has information reasonably to
believe may, assuming liability, involve this Policy.


 


35

















 


This additional information
must be submitted using the Loss Advice Form. A supplemental Loss Advice Form must
be submitted at least every six months for those Claims on which notice has been given, highlighting new
information, or the lack thereof.


 


In the event of any Claim for which notice has been given using
a loss Summaries Bordereau and which, at the time of such notice, did not meet
the criteria set forth in sub-paragraphs (B)(i), (ii) or (iii) above,
should such Claim subsequently
meet such criteria, the Insured shall
promptly submit a Loss Advice Form for such Claim.


 


2.                          Claim


 


As used in this Reporting
and Claims Handling Condition only, the word “Claim”
means: -


 


i)                           any claim first made, in writing, against the Insured during the period of this Policy,
or during any Extended Reporting Period as provided for in the Original Policy;


 


ii)                        any demand for
compensation or services first made, in writing, by any person against the Insured during the period of this Policy,
or during any Extended Reporting Period as provided for in the Original Policy;


 


3.                          Defense Settlement and Co-operation


 


Underwriters have no
obligation, and shall not be called upon, to diligently administer,
investigate, adjust, appraise and defend all or any Claim(s) made against an Insured for which insurance is afforded under this policy, but
Underwriters shall have the right and shall be afforded the opportunity to
associate with the Insured in the
control and defense of any Claim
involving this Policy or the self insured retention;


 


It shall be the
responsibility, right and duty of the Named Insured
and not of the Underwriters to diligently administer, investigate, adjust,
appraise and defend all claims made
against an Insured for which insurance is
afforded under this policy. The Named Insured
shall have such right and duty even if any of the allegations of the claim are groundless, false or fraudulent.


 


The Insured
and the Underwriters shall consult and concur in the selection of counsel to
defend any Claim which is first
made, in writing, against the Insured
during the period of this Policy, or during any Extended Reporting Period as
provided for by the conditions of the Original Policy, and which may involve
this Policy or the Self insured retention. The Insured and their defense counsel shall co-operate with the
Underwriters and afford them access to defense counsel files and the
opportunity to discuss the status, evaluation and strategy with defense counsel.


 


The Insured
agrees to act in good faith and with reasonable care to avoid damages exceeding the Self insured retention. When it
appears that the amount of settlement or judgment on any Claim may involve the
Limit of Liability of this Policy, the insured will
immediately inform Underwriters, who will be afforded the opportunity to
participate directly in settlement negotiations.


 


4.                          Claims Review


 


The Underwriter may conduct
a review of the Insured’s Claims
and claims handling procedures.


 


This review shall be carried
out at such times as specified by Underwriters, and will normally include a
visit to the insured’s claims
operation. The Insured shall
afford the Underwriter full co-operation and make available all information
required by the Insured. The insured shall
also allow the Underwriter such access to the Insured’s records and personnel
as may be necessary.


 


Loss Advice Forms and
Interim Loss Summaries Bordereaux should be submitted to the Underwriter by the
Insured prior to each such review.


 


36

















 


Underwriters may waive any
of the reporting requirements contained in this Policy which Underwriters
determine to be unduly burdensome upon the Insured. Underwriters may also
request additional or alternative information, which shall be supplied by the Insured.


 


The Insured agrees that the availability of
full information is material to the risk undertaken by Underwriters and is
essential to the coverage afforded by this Policy.


 


37

















 


ENDORSEMENT
#12 - APPORTIONMENT OF COSTS ENDORSEMENT


 


Notwithstanding anything
contained herein to the contrary, it is understood that Underwriters
subscribing to this Policy shall not pay for any defense expenses attributable to any one claim or incident until such time as the
amounts, as set forth in the Self Insured Retention, are exhausted solely by
sums paid as damages only
(exclusive of defense expenses); all such defense expenses shall be apportioned to and borne by the Insured, in accordance with the provision 5
Self Insured Retention of this Policy.


 


For the purpose of the
apportionment of defense expenses, in
the event of exhaustion of the Self Insured Retention solely by sums paid as damages (exclusive of defense expenses), those attributable defense expenses to be borne by the Insured, in addition to the amounts
specified in the Self Insured Retention, shall be calculated in the ratio that
the said Self Insured Retention, paid as damages
only (exclusive of defense
expenses) bears to the ultimate amount paid as damages only (exclusive of defense expenses) in respect of all claims arising from the same claim or incident.


 


Nothing contained within the
foregoing shall serve to increase the limits of Underwriters’ liability hereon
beyond the amounts set forth in ITEM 4. of the Declarations, which shall always
apply inclusive of defense expenses.


 


38

















 


ENDORSEMENT
# 13 - NUCLEAR INCIDENT EXCLUSION CLAUSE - LIABILITY - DIRECT - USA


(Not to apply to Nuclear Medicine
and Radiation Therapy)


 


For attachment to Policies
of the following classifications in the U S A, its Territories and Possessions,
Puerto Rico and the Canal Zone -


 


Owners, Landlords and
Tenants Liability, Contractual Liability, Elevator Liability, Owners or
Contractors (including railroad) Protective Liability, Manufacturers and
Contractors Liability, Product Liability, Professional and Malpractice
Liability, Storekeepers Liability, Garage Liability, Automobile Liability, (including
Massachusetts Motor Vehicle or Garage Liability), not being insurances of the
classifications to which the Nuclear Incident Exclusion Clause - Liability -
Direct (Limited) applies.


 


This policy does not apply -


 


I.                            Under any
Liability Coverage, to injury, sickness, disease, death or destruction


 


(a)                    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 termination upon exhaustion of its limit of liability; or


 


(b)                   resulting from the hazardous
properties of nuclear material and with respect to which (1) any person or
organization is required to maintain financial protection pursuant to the
Atomic Energy Act of 1954, or any law amendatory thereof, or (2) the Insured is, or had this policy not been
issued would be, entitled to indemnify from the United States of America, or
any agency thereof, under any agreement entered into by the United States of
America, or any agency thereof, with any person or organization.


 


II.                        Under any
Medical Payments Coverage, or under any Supplementary Payments Provision relating
to immediate medical or surgical relief, to expenses incurred with respect to Bodily Injury, sickness, disease or death
resulting from the hazardous properties of nuclear material and arising out of
the operation of a nuclear facility by any person or organization.


 


III.                    Under any Liability
Coverage, to injury, sickness, disease, death or destruction resulting from the
hazardous properties of nuclear material, if


 


(a)                    the nuclear material (1) is
at any nuclear facility owned by, or operated by or on behalf of, an Insured or (2) has been discharged or
dispersed therefrom;


 


(b)                   the nuclear material is
contained in spent fuel or waste at any time possessed, handled, used,
processed, stored, transported or disposed of by or on behalf of an Insured; or


 


(c)                    the injury, sickness,
disease, death or destruction 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 facility is located within the
United States of America, its territories or possessions or Canada, this
exclusion (c) applies only to Injury to or destruction of property at such
nuclear facility.


 


IV.                    As used in this endorsement:


 


“hazardous properties” include
radioactive, toxic or explosive properties, “nuclear materials” means source
material, special nuclear material or byproduct material; “source materials”, “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 reactor; “waste’ means any waste material (1) containing
byproduct material and (2) resulting from the operation by any person or
organization of any nuclear facility included within the definition of nuclear
facility under paragraph (a) or (b) thereof; “nuclear facility” means


 


(a)                    any nuclear
reactor,


 


39

















 


(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 located consists of or contains more
than 25 grams of plutonium or uranium 233 or any combination thereof, or more
than 250 grams of uranium 235.


 


(d)                   any structure, basin,
excavation, premises or piece 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 ail 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. With respect to injury to or destruction of property, the word “Injury”
or “destruction” includes all forms of radioactive contamination of property.


 


It is understood and agreed
that, except as specifically provided in the foregoing to the contrary, this
clause is subject to the terms, exclusions, conditions and limitations of the
Policy to which it is attached.


 


*NOTE: As respects
policies which afford liability coverages and other forms of coverage in
addition, the words underlined should be amended to designate the liability
coverage to which this clause is to apply.


 


NMA 1256


 


40














 


ENDORSEMENT
#14 - RADIOACTIVE CONTAMINATION EXCLUSION CLAUSE -LIABILITY-DIRECT ENDORSEMENT


(Not to apply to Nuclear Medicine
and Radiation Therapy)


 


For attachment (in addition
to the appropriate Nuclear Incident Exclusion Clause -Liability - Direct) to liability
insurances affording worldwide coverage.


 


In relation to liability
arising outside the U.S.A., its Territories or possessions, Puerto Rico or the
Canal Zone, this Policy does not cover any liability of whatsoever nature
directly or indirectly caused by or contributed to by or arising from ionizing
radiations or contamination by radioactivity from any nuclear fuel or from any
nuclear waste from the combustion of nuclear fuel.


 


NMA 1477


 


41

















 


ENDORSEMENT
#15 - BUSINESS ASSOCIATE ENDORSEMENT


 


Obligations
of the Underwriter


 


Pursuant to the Standards
for Privacy of Individually Identifiable Health Information and the Health
Insurance Reform Security Standards issued under the Health Insurance
Portability and Accountability Act of 1996 (the “Privacy Rule” and the “Security
Rule,” respectively), the Underwriter shall:


 


1.                          Not use or
further disclose protected health information, as defined by the Privacy Rule (“PHI”),
other than:


 


a.                         To administer
this Policy or reinsurance agreements to which the Underwriter is a party
relating to this Policy;


 


b.                        To analyze
coverage and/or liability issues;


 


c.                         To evaluate claims for purposes of defense or settlement;


 


d.                        To set,
evaluate or adjust reserves;


 


e.                         To set, raise
or refund any current or future insurance or reinsurance premiums;


 


f.                           To underwrite
this Policy or future insurance coverage;


 


g.                        To evaluate the
Insured’s risk management, loss
prevention and quality assurance activities;


 


h.                        As otherwise
provided in this Endorsement or in connection with this Policy or as permitted
or required by the Policy;


 


i.                            For the proper
management and administration of the Underwriter and to carry out the legal
responsibilities of the Underwriter, provided in each case that the disclosure
is required by law, or reasonable assurances are obtained from the person to
whom the information is disclosed that it will be held confidentially and used
or further disclosed only as required by law or for the purpose for which it
was disclosed to such person and that the person notifies the Underwriter of
any instances of which it is aware in which the confidentiality of the
information has been breached;


 


j.                            To provide data
aggregation services relating to the health care operations of the Insureds;
and


 


k.                         As required by
applicable law.


 


2.                          Use appropriate
safeguards to prevent use or disclosure of PHI other than as provided for by
this Endorsement. Additionally, the Underwriter agrees to implement
administrative, physical and technical safeguards that reasonably and
appropriately protect the confidentiality, integrity and availability of the
electronic PHI that it creates, maintains or transmits on behalf of the Insured.


 


3.                          Report to the Insured who provided such PHI any use or disclosure of PHI
not provided for by this Endorsement and any Security Incident (i.e., the attempted or successful
unauthorized access, use, disclosure, modification or destruction of
information or interference with system operations in an information system) of
which the Underwriter becomes aware.


 


4.                          Ensure that any
of its agents or subcontractors to which the Underwriter provides PHI received
from or created or received on behalf of Insured agrees
to the same restrictions and conditions that apply through this Endorsement to
the Underwriter with respect to PHI, including without limitation, the
obligation to implement reasonable and appropriate safeguards to protect
electronic PHI.


 


5.                          To the extent
the Underwriter maintains PHI in a designated record set (as defined by the
Privacy Rule) and at the request of the Insured, make
such PHI available for access to the Insured except
for:


 


a.                         PHI maintained
by the Underwriter which is a copy of PHI held by the Insured;
or


 


b.                        Information
that is protected by the Privacy Rule or other applicable law from
disclosure.


 


6.                          To the extent
the Underwriter maintains PHI in a designated record set (as defined by the
Privacy Rule) and at the request of an Insured, make
available to the Insured such PHI for amendment and
Incorporate any amendments to PHI provided by the Insured.


 


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7.                          At the request
of an Insured, provide
documentation of disclosures of PHI made by the Underwriter other than for
purposes described in Paragraph 1 above and provide the following information
related to each such disclosure for purposes of enabling the Insured to provide an accounting of disclosures of PHI as
required under the Privacy Rule:


 


a.                         The date of the
disclosure;


 


b.                        The name of the
entity or person who received PHI and, if known, the address of such entity or
person;


 


c.                         A brief
description of PHI disclosed; and


 


d.                        A brief
statement of the purpose of the disclosure that reasonably informs the Insured of the basis for the disclosure.


 


The foregoing is subject to
all of the exceptions to an accounting of disclosures of PHI provided in the
Privacy Rule (e.g., no accounting is required for disclosures of PHI made
in connection with health care operations as defined by the Privacy Rule).


 


8.                          Make its
internal practices, books, and records relating to the use and disclosure of
PHI received from or by the Underwriter on behalf of the Insured
available to the Secretary of the United States Department of Health and Human
Services for purposes of determining the Insured’s
compliance with the Privacy Rule.


 


Obligations of the Insureds


 


An Insured
shall:


 


1.                          Not request the
Underwriter to use or disclose PHI in any manner prohibited to the Insured under the Privacy Rule.


 


2.                          Notify the
Underwriter of any limitations in or changes to its Notice of Privacy Practices
to the extent that such limitation or change may affect the Underwriter’s use
or disclosure of PHI.


 


3.                          Notify the
Underwriter of any restriction on the use or disclosure of PHI that it has
agreed to in accordance with the Privacy Rule to the extent that such
restriction may affect the Underwriter’s use or disclosure of PHI.


 


Material Breach Involving PHI


 


Upon the Insured’s knowledge of a material breach by the Underwriter
of the provisions of this Endorsement involving the use or disclosure of PHI,
the Insured shall provide the
Underwriter with written notice of such breach, including a description of the
manner in which the circumstances leading to such breach can be cured. The Insured shall provide the Underwriter with an opportunity to
cure by taking steps to change such circumstances within the sixty-day period
following the notice. If the breach is not cured within such sixty-day period,
the Insured may terminate this Policy with
respect to the Insured, if
feasible. The Underwriter acknowledges that if termination under those
circumstances is not feasible, the Insured is
obligated to report the violation to the Secretary of the United States
Department of Health and Human Services.


 


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Effect of
Termination or Cancellation


 


The Underwriter and the Insured acknowledge and agree that PHI will be needed by the
Underwriter following the termination or cancellation of the Policy for
purposes described herein, and that it therefore is not feasible for the
Underwriter to return or destroy all PHI received from or on behalf of Insured. Therefore, the Underwriter shall extend the
protections of this Endorsement to such PHI and limit further uses and
disclosures of such PHI to those purposes that make the return or destruction
infeasible for so long as the Underwriter maintains such PHI. These provisions
shall survive termination of this Policy.


 


Applicability


 


This Endorsement applies to
a particular Insured only if and to the extent
such Insured is a covered entity or a member
of the workforce of a covered entity within the meaning of the Privacy Rule.
This Endorsement is being provided solely for the purpose of enabling the Insured to comply with its obligations as a “covered entity”
under the Privacy Rule and does not constitute an agreement by the
Underwriter to be subject to any United States federal or state law to which
the Underwriter is not otherwise subject.


 


All other terms, conditions
and exclusions of the policy remain unchanged.


 


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ENDORSEMENT
#16 - NO RECOURSE ENDORSEMENT


 


In no event shall anyone
other than an Insured or, in the
event of an Insured’s insolvency, its
receiver, liquidator or statutory successor, have any rights to payment from
Underwriters under this policy.


 


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ENDORSEMENT
#17 - SPECIAL RIGHTS AND DUTIES OF THE NAMED INSURED:


 


The Named Insured shown on the Declarations Page shall
act on behalf of all Insureds as to:


 


a.                         Giving and
receiving notice of cancellation;


b.                        Payment of
premiums and receipt of return premiums;


c.                         Acceptance of
any endorsements to this policy; or


d.                        Purchasing or
deciding not to purchase the extended reporting period or extended discovery
coverage, if applicable; or


e.                         Reporting and
handling of claims.


 


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ENDORSEMENT
#18 - TITLES OF PARAGRAPHS & HEADINGS:


 


Titles of paragraphs and
section headings are inserted solely for convenience of reference and shall not
be deemed to limit, expand or otherwise affect the provisions to which they
relate.


 


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ENDORSEMENT
#19 - PHYSICIAN EXCLUSION:


 


Coverage is excluded for any
physician who is not specifically endorsed on the Schedule of Individual
Physicians.


 


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