Exhibit 17
INSURANCE SERVICES OFFICE, INC. 545 WASHINGTON BOULEVARD JERSEY CITY, NJ 07310-1686

WWW.ISO.COM © ISO Properties, Inc., 2006 Page 1 of 3 

FORMS - FILED JULY 6, 2006

FROM: LARRY PODOSHEN, SENIOR ANALYST 

 COMMERCIAL PROPERTY LI-CF-2006-175

NEW ENDORSEMENTS FILED TO ADDRESS EXCLUSION OF 

LOSS DUE TO VIRUS OR BACTERIA 

This circular announces the submission of forms filings to address exclusion of loss 

due to disease-causing agents such as viruses and bacteria. 

BACKGROUND 

Commercial Property policies currently contain a pollution exclusion that encompasses 

contamination (in fact, uses the term contaminant in addition to other terminology). Although the 

pollution exclusion addresses contamination broadly, viral and bacterial contamination are specific 

types that appear to warrant particular attention at this point in time. 

ISO ACTION 

We have submitted forms filing CF-2006-OVBEF in all ISO jurisdictions and recommended the 

filing to the independent bureaus in other jurisdictions. This filing introduces new endorsement 

CP 01 40 07 06 - Exclusion Of Loss Due To Virus Or Bacteria, which states that there is no coverage 

for loss or damage caused by or resulting from any virus, bacterium or other microorganism 

that induces or is capable of inducing physical distress, illness or disease. 

Note: In Alaska, District of Columbia, Louisiana*, New York and Puerto Rico, we have submitted 

a different version of this filing, containing new endorsement CP 01 75 07 06 in place of CP 01 40. 

The difference relates to lack of implementation of the mold exclusion that was implemented in 

other jurisdictions under a previous multistate filing. 

Both versions of CF-2006-OVBEF are attached to this circular. 

* In Louisiana, the filing was submitted as a recommendation to the Property Insurance Association 

of Louisiana (PIAL), the independent bureau with jurisdiction for submission of property filings. 

PROPOSED EFFECTIVE DATE 

Filing CF-2006-OVBEF was submitted with a proposed effective date of January 1, 2007, in 

accordance with the applicable effective date rule of application in each state, with the exception of 

various states for which the insurer establishes its own effective date. 

Upon approval, we will announce the actual effective date and state-specific rule of effective date 

application for each state. 
LI-CF-2006-175 

© ISO Properties, Inc., 2006 Page 2 of 3

RATING SOFTWARE IMPACT 

New attributes being introduced with this revision: 

• A new form is being introduced. 

CAUTION 

This filing has not yet been approved. If you print your own forms, do not go beyond the proof stage 

until we announce approval in a subsequent circular. 

RELATED RULES REVISION 

We are announcing in a separate circular the filing of a corresponding rules revision. Please refer to 

the Reference(s) block for identification of that circular. 

REFERENCE(S) 

LI-CF-2006-176 (7/6/06) - New Additional Rule Filed To Address Exclusion Of Loss Due To Virus 

Or Bacteria 

ATTACHMENT(S)

• Multistate Forms Filing CF-2006-OVBEF 

• State-specific version of Forms Filing CF-2006-OVBEF (Alaska, District of Columbia, 

Louisiana, New York, Puerto Rico) 

We are sending these attachments only to recipients who asked to be put on the mailing list for 

attachments. If you need the attachments for this circular, contact your company’s circular 

coordinator. 

PERSON(S) TO CONTACT 

If you have any questions concerning: 

• the content of this circular, please contact: 

Larry Podoshen 

Senior Analyst 

Commercial Property 

(201) 469-2597 Fax: (201) 748-1637 

comfal@iso.com

lpodoshen@iso.com

 or 

Loretta Newman, CPCU 

Manager 

Commercial Property 

(201) 469-2582 Fax: (201) 748-1873 

comfal@iso.com

lnewman@iso.com
LI-CF-2006-175 

© ISO Properties, Inc., 2006 Page 3 of 3

• the mailing or distribution of this circular, please contact our Customer Service Division: 

E-mail: info@iso.com

Fax: 201-748-1472 

Phone: 800-888-4476 

World Wide Web: http://www.iso.com

Write: See address on page 1 

• products or services, please call or e-mail ISO Customer Service, or call your ISO 

representative. 

Callers outside the United States may contact us using our global toll-free number (International 

Access Code + 800 48977489) or by e-mail at info.global@iso.com. For information on all ISO 

products, visit us at http://www.iso.com. 
© ISO Properties, Inc., 2006 Edition 11-03

IMPORTANT NOTICE FOR USERS OF 

ISO PRODUCTS AND SERVICES

Please make sure that your company has authorized your use of this product and has complied with the 

requirements applicable in the jurisdiction where you plan to use it.

We distribute both state-specific and multi-state products and services. We do not distribute all the multi-state 

products and services for use in every jurisdiction due to corporate policy, regulatory preference, or variations or 

lack of clarity in state laws. 

We provide participating insurers with information concerning the jurisdictions for which our products and services 

are distributed. Even in those jurisdictions, each insurer must determine what filing requirements, if any, apply 

and whether those requirements have been satisfied. 

Now, as in the past, all of our products and services are advisory, and are made available for optional use by 

participating insurers as a matter of individual choice. Your company must decide for itself which, if any, ISO 

products or services are needed or useful to its operation and how those selected for use should be applied. We 

urge that you be guided by the advice of your attorneys on the legal requirements. 

Copyright Explanation 

 The material distributed by Insurance Services Office, Inc. is copyrighted. All 

rights reserved. Possession of these pages does not confer the right to print, 

reprint, publish, copy, sell, file, or use same in any manner without the 

written permission of the copyright owner. Permission is hereby granted to 

members, subscribers, and service purchasers to reprint, copy, or otherwise 

use the enclosed material for purposes of their own business use relating to 

that territory or line or kind of insurance, or subdivision thereof, for which 

they participate, provided that: 

 A. where ISO copyrighted material is reprinted, copied, or otherwise used 

as a whole, it must reflect the copyright notice actually shown on such 

material. 

 B. where ISO copyrighted material is reprinted, copied, or otherwise used 

in part, the following credit legend must appear at the bottom of each 

page so used: 

 Includes copyrighted material of Insurance Services Office, Inc., with its 

permission. 
© ISO Properties, Inc., 2006 

COMMERCIAL FIRE AND ALLIED LINES 

FORMS FILING CF-2006-OVBEF 

Amendatory Endorsement - 

Exclusion Of Loss Due To Virus Or 

Bacteria 

About This Filing 

This filing addresses exclusion of loss due to disease-causing agents such as 

viruses and bacteria. 

New Form 

We are introducing: 

♦ Endorsement CP 01 40 07 06 - Exclusion Of Loss Due To Virus Or Bacteria 

Related Filing(s) 

Rules Filing CF-2006- OVBER 

Introduction 

The current pollution exclusion in property policies encompasses contamination 

(in fact, uses the term contaminant in addition to other terminology). Although 

the pollution exclusion addresses contamination broadly, viral and bacterial 

contamination are specific types that appear to warrant particular attention at this 

point in time. 

An example of bacterial contamination of a product is the growth of listeria 

bacteria in milk. In this example, bacteria develop and multiply due in part to 

inherent qualities in the property itself. Some other examples of viral and 

bacterial contaminants are rotavirus, SARS, influenza (such as avian flu), 

legionella and anthrax. The universe of disease-causing organisms is always in 

evolution. 

Disease-causing agents may render a product impure (change its quality or 

substance), or enable the spread of disease by their presence on interior building 

surfaces or the surfaces of personal property. When disease-causing viral or 

bacterial contamination occurs, potential claims involve the cost of replacement 

of property (for example, the milk), cost of decontamination (for example, 

interior building surfaces), and business interruption (time element) losses. 
COMMERCIAL FIRE AND ALLIED LINES 

FORMS FILING CF-2006- OVBEF Page 2

© ISO Properties, Inc., 2006 

Current Concerns 

Although building and personal property could arguably become contaminated 

(often temporarily) by such viruses and bacteria, the nature of the property itself 

would have a bearing on whether there is actual property damage. An allegation 

of property damage may be a point of disagreement in a particular case. In 

addition, pollution exclusions are at times narrowly applied by certain courts. In 

recent years, ISO has filed exclusions to address specific exposures relating to 

contaminating or harmful substances. Examples are the mold exclusion in 

property and liability policies and the liability exclusion addressing silica dust. 

Such exclusions enable elaboration of the specific exposure and thereby can 

reduce the likelihood of claim disputes and litigation. 

While property policies have not been a source of recovery for losses involving 

contamination by disease-causing agents, the specter of pandemic or hitherto 

unorthodox transmission of infectious material raises the concern that insurers 

employing such policies may face claims in which there are efforts to expand 

coverage and to create sources of recovery for such losses, contrary to policy 

intent. 

In light of these concerns, we are presenting an exclusion relating to 

contamination by disease-causing viruses or bacteria or other disease-causing 

microorganisms. 

Features Of New Amendatory Endorsement 

The amendatory endorsement presented in this filing states that there is no 

coverage for loss or damage caused by or resulting from any virus, 

bacterium or other microorganism that induces or is capable of inducing 

physical distress, illness or disease. The exclusion (which is set forth in 

Paragraph B of the endorsement) applies to property damage, time element and 

all other coverages; introductory Paragraph A prominently makes that point. 

Paragraphs C and D serve to avoid overlap with other exclusions, and Paragraph 

E emphasizes that other policy exclusions may still apply. 

Copyright Explanation 

The material distributed by Insurance Services Office, Inc. is copyrighted. All 

rights reserved. Possession of these pages does not confer the right to print, 

reprint, publish, copy, sell, file or use same in any manner without the written 

permission of the copyright owner. 
COMMERCIAL FIRE AND ALLIED LINES 

FORMS FILING CF-2006- OVBEF Page 3

© ISO Properties, Inc., 2006 

Important Note 

Insurance Services Office, Inc. (ISO) makes available advisory services to 

property/casualty insurers. ISO has no adherence requirements. ISO policy forms 

and explanatory materials are intended solely for the information and use of 

ISO's participating insurers and their representatives, and insurance regulators. 

Neither ISO's general explanations of policy intent nor opinions expressed by 

ISO's staff necessarily reflect every insurer's view or control any insurer's 

determination of coverage for a specific claim. ISO does not intercede in 

coverage disputes arising from insurance policies. If there is any conflict between 

a form and any other part of the attached material, the provisions of the form 

apply. 
COMMERCIAL PROPERTY

CP 01 40 07 06

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. 

CP 01 40 07 06 © ISO Properties, Inc., 2006 Page 1 of 1 

N

E

W

 EXCLUSION OF LOSS DUE TO VIRUS OR BACTERIA 

This endorsement modifies insurance provided under the following: 

COMMERCIAL PROPERTY COVERAGE PART 

STANDARD PROPERTY POLICY 

A. The exclusion set forth in Paragraph B. applies to 

all coverage under all forms and endorsements 

that comprise this Coverage Part or Policy, including but not limited to forms or endorsements that 

cover property damage to buildings or personal 

property and forms or endorsements that cover 

business income, extra expense or action of civil 

authority. 

B. We will not pay for loss or damage caused by or 

resulting from any virus, bacterium or other microorganism that induces or is capable of inducing 

physical distress, illness or disease. 

 However, this exclusion does not apply to loss or 

damage caused by or resulting from "fungus", wet 

rot or dry rot. Such loss or damage is addressed in 

a separate exclusion in this Coverage Part or Policy. 

C. With respect to any loss or damage subject to the 

exclusion in Paragraph B., such exclusion supersedes any exclusion relating to "pollutants". 

D. The following provisions in this Coverage Part or 

Policy are hereby amended to remove reference 

to bacteria: 

 1. Exclusion of "Fungus", Wet Rot, Dry Rot And 

Bacteria; and 

2. Additional Coverage - Limited Coverage for 

"Fungus", Wet Rot, Dry Rot And Bacteria, including any endorsement increasing the scope 

or amount of coverage. 

E. The terms of the exclusion in Paragraph B., or the 

inapplicability of this exclusion to a particular loss, 

do not serve to create coverage for any loss that 

would otherwise be excluded under this Coverage 

Part or Policy.
© ISO Properties, Inc., 2006 

ALASKA, DISTRICT OF COLUMBIA, LOUISIANA, NEW YORK, PUERTO RICO 

COMMERCIAL FIRE AND ALLIED LINES 

FORMS FILING CF-2006-OVBEF 

Amendatory Endorsement - 

Exclusion Of Loss Due To Virus Or 

Bacteria 

About This Filing 

This filing addresses exclusion of loss due to disease-causing agents such as 

viruses and bacteria. 

New Form 

We are introducing: 

♦ Endorsement CP 01 75 07 06 - Exclusion Of Loss Due To Virus Or Bacteria 

Related Filing(s) 

Rules Filing CF-2006-OVBER 

Introduction 

The current pollution exclusion in property policies encompasses contamination 

(in fact, uses the term contaminant in addition to other terminology). Although 

the pollution exclusion addresses contamination broadly, viral and bacterial 

contamination are specific types that appear to warrant particular attention at this 

point in time. 

An example of bacterial contamination of a product is the growth of listeria 

bacteria in milk. In this example, bacteria develop and multiply due in part to 

inherent qualities in the property itself. Some other examples of viral and 

bacterial contaminants are rotavirus, SARS, influenza (such as avian flu), 

legionella and anthrax. The universe of disease-causing organisms is always in 

evolution. 

Disease-causing agents may render a product impure (change its quality or 

substance), or enable the spread of disease by their presence on interior building 

surfaces or the surfaces of personal property. When disease-causing viral or 

bacterial contamination occurs, potential claims involve the cost of replacement 
COMMERCIAL FIRE AND ALLIED LINES 

FORMS FILING CF-2006-OVBEF Page 2

© ISO Properties, Inc., 2006 

of property (for example, the milk), cost of decontamination (for example, 

interior building surfaces), and business interruption (time element) losses. 

Current Concerns 

Although building and personal property could arguably become contaminated 

(often temporarily) by such viruses and bacteria, the nature of the property itself 

would have a bearing on whether there is actual property damage. An allegation 

of property damage may be a point of disagreement in a particular case. In 

addition, pollution exclusions are at times narrowly applied by certain courts. In 

recent years, ISO has filed exclusions to address specific exposures relating to 

contaminating or harmful substances. Examples are the mold exclusion in 

property and liability policies and the liability exclusion addressing silica dust. 

Such exclusions enable elaboration of the specific exposure and thereby can 

reduce the likelihood of claim disputes and litigation. 

While property policies have not been a source of recovery for losses involving 

contamination by disease-causing agents, the specter of pandemic or hitherto 

unorthodox transmission of infectious material raises the concern that insurers 

employing such policies may face claims in which there are efforts to expand 

coverage and to create sources of recovery for such losses, contrary to policy 

intent. 

In light of these concerns, we are presenting an exclusion relating to 

contamination by disease-causing viruses or bacteria or other disease-causing 

microorganisms. 

Features Of New Amendatory Endorsement 

The amendatory endorsement presented in this filing states that there is no 

coverage for loss or damage caused by or resulting from any virus, 

bacterium or other microorganism that induces or is capable of inducing 

physical distress, illness or disease. The exclusion (which is set forth in 

Paragraph B of the endorsement) applies to property damage, time element and 

all other coverages; introductory Paragraph A prominently makes that point. 

Paragraph C serves to avoid overlap with another exclusion, and Paragraph D 

emphasizes that other policy exclusions may still apply. 

Copyright Explanation 

The material distributed by Insurance Services Office, Inc. is copyrighted. All 

rights reserved. Possession of these pages does not confer the right to print, 

reprint, publish, copy, sell, file or use same in any manner without the written 

permission of the copyright owner. 
COMMERCIAL FIRE AND ALLIED LINES 

FORMS FILING CF-2006-OVBEF Page 3

© ISO Properties, Inc., 2006 

Important Note 

Insurance Services Office, Inc. (ISO) makes available advisory services to 

property/casualty insurers. ISO has no adherence requirements. ISO policy forms 

and explanatory materials are intended solely for the information and use of 

ISO's participating insurers and their representatives, and insurance regulators. 

Neither ISO's general explanations of policy intent nor opinions expressed by 

ISO's staff necessarily reflect every insurer's view or control any insurer's 

determination of coverage for a specific claim. ISO does not intercede in 

coverage disputes arising from insurance policies. If there is any conflict between 

a form and any other part of the attached material, the provisions of the form 

apply. 
COMMERCIAL PROPERTY

CP 01 75 07 06

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. 

CP 01 75 07 06 © ISO Properties, Inc., 2006 Page 1 of 1 

N

E

W

 EXCLUSION OF LOSS DUE TO VIRUS OR BACTERIA 

This endorsement modifies insurance provided under the following: 

COMMERCIAL PROPERTY COVERAGE PART 

STANDARD PROPERTY POLICY 

A. The exclusion set forth in Paragraph B. applies to 

all coverage under all forms and endorsements 

that comprise this Coverage Part or Policy, including but not limited to forms or endorsements that 

cover property damage to buildings or personal 

property and forms or endorsements that cover 

business income, extra expense or action of civil 

authority. 

B. We will not pay for loss or damage caused by or 

resulting from any virus, bacterium or other microorganism that induces or is capable of inducing 

physical distress, illness or disease. 

 However, this exclusion does not apply to loss or 

damage caused by or resulting from fungus. Such 

loss or damage is addressed in a separate exclusion in this Coverage Part or Policy. 

C. With respect to any loss or damage subject to the 

exclusion in Paragraph B., such exclusion supersedes any exclusion relating to "pollutants". 

D. The terms of the exclusion in Paragraph B., or the 

inapplicability of this exclusion to a particular loss, 

do not serve to create coverage for any loss that 

would otherwise be excluded under this Coverage 

Part or Policy.