COVERAGE MUST
PROVIDE FOR CLAIMS TO BE MADE ON AN OCCURRENCE BASIS.
THE POLICY MUST NAME
LENDER AS AN ADDITIONAL INSURED.
THE INSURANCE COVERAGE REQUIRED UNDER THIS
SUBSECTION (VI) MAY BE SATISFIED BY A LAYERING OF COMMERCIAL GENERAL LIABILITY,
UMBRELLA AND EXCESS LIABILITY POLICIES, BUT IN NO EVENT WILL THE COMMERCIAL
GENERAL LIABILITY POLICY BE WRITTEN FOR AN AMOUNT LESS THAN $1,000,000 PER
OCCURRENCES AND $2,000,000 AGGREGATE FOR BODILY INJURY AND PROPERTY DAMAGE
LIABILITY.
LENDER MAY REQUIRE UMBRELLA COVERAGE WHICH WILL BE EVALUATED ON A
CASE BY CASE BASIS BUT IN NO EVENT SHALL THE AMOUNT OF UMBRELLA COVERAGE BE LESS
THAN $5,000,000.00.
(VII)
WORKERS' COMPENSATION INSURANCE.
WORKERS'
COMPENSATION INSURANCE MUST BE MAINTAINED WITH RESPECT TO ALL EMPLOYEES EMPLOYED
AT THE PROPERTY, IN COMPLIANCE WITH THE LAWS OF THE STATE IN WHICH THE PROPERTY
IS LOCATED.
(VIII)
EARTHQUAKE INSURANCE.
IF THE PROPERTY IS LOCATED
IN AN AREA IN WHICH THE PROBABLE MAXIMUM LOSS OF THE PROPERTY IS 20% OR GREATER,
AS DETERMINED BY LENDER IN ITS REASONABLE DISCRETION, EARTHQUAKE INSURANCE MUST
BE MAINTAINED IN FORM, AMOUNT AND WITH DEDUCTIBLES SATISFACTORY TO LENDER.
(IX)
OTHER COVERAGE.
WITHOUT LIMITING LENDER'S
RIGHTS UNDER THIS SECTION 9.03(A), LENDER MAY ALSO REQUIRE BORROWER TO MAINTAIN
BUILDER'S RISK INSURANCE DURING ANY PERIOD OF CONSTRUCTION, RENOVATION OR
ALTERATION OF THE IMPROVEMENTS, MOTOR VEHICLES LIABILITY INSURANCE IN CONNECTION
WITH ALL OWNED OR NON-OWNED MOTOR VEHICLES USED IN CONNECTION WITH THE
MANAGEMENT OR MAINTENANCE OF THE PROPERTY, "DRAM SHOP," OR SIMILAR COVERAGE IF
ALCOHOLIC BEVERAGES ARE SOLD AT THE PROPERTY, FIDELITY BOND COVERAGE FOR
EMPLOYEES HANDLING RENTS AND OTHER INCOME FROM THE PROPERTY, ENVIRONMENTAL
INSURANCE AND OTHER INSURANCE WITH RESPECT TO THE PROPERTY OR ON ANY
REPLACEMENTS OR SUBSTITUTIONS THEREOF OR ADDITIONS THERETO AGAINST OTHER
INSURABLE HAZARDS OR CASUALTIES WHICH AT THE TIME ARE COMMONLY INSURED AGAINST
IN THE CASE OF PROPERTY SIMILARLY SITUATED,
48
DUE REGARD BEING GIVEN TO THE HEIGHT AND TYPE OF BUILDINGS, THEIR CONSTRUCTION,
LOCATION, USE AND OCCUPANCY.
(B)
QUALIFIED INSURERS; LENDER'S CONSENT.
ALL
INSURANCE MUST BE ISSUED UNDER VALID AND ENFORCEABLE POLICIES OF INSURANCE
ACCEPTABLE TO LENDER AND ISSUED BY ONE OR MORE DOMESTIC PRIMARY INSURERS
AUTHORIZED TO ISSUE INSURANCE IN THE STATE IN WHICH THE PROPERTY IS LOCATED.
EACH INSURER MUST HAVE A MINIMUM CLAIMS PAYING ABILITY RATING OF "A" OR BETTER
FROM S&P OR AN A.M. BEST RATING OF A-IX OR BETTER.
LENDER'S APPROVAL OF
INSURANCE COVERAGE AT ANY TIME IS NOT A REPRESENTATION OR WARRANTY CONCERNING
THE SUFFICIENCY OF ANY COVERAGE OR THE SOLVENCY OF ANY INSURER, AND LENDER SHALL
NOT BE RESPONSIBLE FOR, NOR INCUR ANY LIABILITY FOR, THE INSOLVENCY OF THE
INSURER OR OTHER FAILURE OF THE INSURER TO PERFORM.
(C)
POLICY REQUIREMENTS.
ALL POLICIES MUST BE
FOR A TERM OF NOT LESS THAN A YEAR AND NAME LENDER AS A BENEFICIARY OF SUCH
COVERAGE AS PROVIDED IN THIS SECTION 9.03 OR OTHERWISE IDENTIFIED BY LENDER.
EACH POLICY MUST ALSO CONTAIN:
(I) AN ENDORSEMENT OR PROVISION THAT PERMITS
RECOVERY BY LENDER NOTWITHSTANDING THE NEGLIGENT OR WILLFUL ACTS OR