Document:

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]

  	
   

  

 

 

1

 

	
  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

  

 

2

 

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.

 

4

 

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.

 

5

 

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.

 

6

 

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.

 

7

 

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;

 

8

 

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.

 

9

 

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.

 

42

 

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.

 

43

 

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.

 

44

 

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.

 

45

 

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.

 

46

 

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.

 

47

 

ENDORSEMENT
#19 - PHYSICIAN EXCLUSION:

 

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

 

48Exhibit 10.73

 

COVERAGE SUMMARY

Physician Professional Liability Insurance Policy

 

NOTICE:
THIS POLICY IS ISSUED BY YOUR RISK RETENTION GROUP. YOUR RISK RETENTION GROUP MAY
NOT BE SUBJECT TO ALL OF THE INSURANCE LAWS AND REGULATIONS OF YOUR STATE.
STATE INSURANCE INSOLVENCY GUARANTY FUNDS ARE NOT AVAILABLE FOR YOUR RISK
RETENTION GROUP. THIS POLICY IS SUBJECT TO ARBITRATION IN ACCORDANCE WITH
THE SOUTH CAROLINA UNIFORM ARBITRATION ACT. SECTION 15-48-10.

 

INSURER

 

NATIONAL MEDICAL
PROFESSIONAL RISK RETENTION GROUP, INC.

7301 Rivers Avenue, Suite 230

North Charleston. SC 29406

 

Notice: The following
telephone numbers may be used to present inquiries or obtain information about
coverage and to provide assistance in resolving complaints: (888 ) 804-9556

 

FIRST NAMED INSURED- NAME AND ADDRESS

 

Radiation Therapy Services, Inc.
/21st Century Oncology, Inc.

2234 Colonial Boulevard

Fort Myers, FL 33907

 

POLICY AND ENDORSEMENTS ISSUED AT INCEPTION

 

Policy Number:
NMP-FL860013                                   Form: NMP 2006

 

Manuscript Endorsements: Endorsement
1 Cancellation; Endorsement 2 Consent to Settle; Endorsement 3 Limits of
Liability; Endorsement 4 Insured Persons and Organizations; Endorsement 5
General Changes; Endorsement 6 Exclusions; Endorsement 7 Definitions;
Endorsement 8 Physician Coverage Part; Endorsement 9 Hearing Costs; Endorsement
10: NMPRRG HIPAA Endorsement; Endorsement 11: Revised HIPAA Endorsement

 

Effective Date: October 14,
2009                                 Expiration
Date: October 14, 2010

 

Retroactive
Date: See page 2

 

PREMIUM

 

In consideration of the payment
of the premium and subject to all the terms and conditions of this policy, we agree with you to provide the
insurance as stated in this policy.  This policy
consists of the Physician Professional
Liability Policy,  NMP-FL860013, along with the coverage part(s) for
which a premium is indicated. Where no premium is shown, there is no coverage.

 

	
  Coverage Part

  	
   

  	
  Limits of Liability

  	
   

  	
  Premium

  
	
  Physician

  	
   

  	
  See
  Endorsement No. 3

  	
   

  	
   

  
	
  Professional Organization

  	
   

  	
  N/A

  	
   

  	
   

  

 

TOTAL PREMIUM:

 

1

 

INSURED PERSONS AND ORGANIZATIONS

 

	
  Name

  	
   

  	
  Retroactive Date

  	
   

  	
  Termination Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  See Endorsement No. 4

  	
   

  	
   

  	
   

  	
   

  

 

LISTED PHYSICIANS/PHYSICIAN EXTENDERS

(See Section A.7 of Physician Professional Liability Coverage Part

and definition of covered person in Professional Organization Coverage Part)

 

	
  Name

  	
   

  	
  Retroactive Date

  	
   

  	
  Termination Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  See Endorsement No. 4

  	
   

  	
   

  	
   

  	
   

  

 

AGENT

 

Arthur J. Gallagher Risk
Management Services, Inc. 

9821 Katy Freeway, Suite 700 

Houston, TX 77024

 

The person to whom or in
whose name this policy is issued
is considered a member of the risk retention group with all rights and
obligations of membership.

 

The Coverage Summary, along
with policy form and endorsements
listed above, complete the above numbered policy.

 

	
  Date Issued:
  January 11, 2010

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Authorized Signatory

  	
   

  	
  /s/ Authorized Signatory

  
	
  Authorized
  Representative

  	
   

  	
  Authorized Representative

  

 

2

 

NATIONAL MEDICAL PROFESSIONAL

RISK RETENTION GROUP, INC.

(NMPRRG)

North Charleston, South Carolina

 

PHYSICIAN PROFESSIONAL LIABILITY POLICY

 

POLICY NUMBER: NMP-FL860013

 

NOTICE: THIS POLICY IS ISSUED BY YOUR RISK RETENTION GROUP.
YOUR RISK RETENTION GROUP MAY NOT BE SUBJECT TO ALL OF THE INSURANCE LAWS
AND REGULATIONS OF YOUR STATE. STATE INSURANCE INSOLVENCY GUARANTY FUNDS ARE
NOT AVAILABLE FOR YOUR RISK RETENTION GROUP. THIS POLICY IS SUBJECT TO
ARBITRATION IN ACCORDANCE WITH THE SOUTH CAROLINA UNIFORM ARBITRATION ACT.
SECTION 15-48-10.

 

The policyholder has no contingent liability under this non
assessable policy.

 

Notice of Annual Meeting of Members

 

Pursuant to South Carolina
Code Section 38-19-40, the annual meeting of members of National Medical
Professional Risk Retention Group, Inc. will be held at: a day and time to
be determined.

 

Any change of the time and
place of the annual meeting of members will be made only at an annual meeting
of members, and notice of such change will be provided in accordance with the
bylaws of National Medical Professional Risk Retention Group, Inc.

 

FORM NMP 2006

 

1

 

NATIONAL MEDICAL PROFESSIONAL

RISK RETENTION GROUP, INC.

(NMPRRG)

 

PROFESSIONAL LIABILITY POLICY

 

Introduction

 

This policy is written in plain language. Please
read it and familiarize yourself with what it says. If you have any questions, corrections or
changes, please contact us at the
telephone number or address listed on the Coverage Summary to this policy.

 

	
  Your Professional Liability Policy is made up of the following items

  	
   

  	
  Page Number

  
	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
  Coverage
  Summary

  	
   

  	
  Separate Page

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  This is a page, which is
  typed or printed and inserted as the first page you see when you open the policy.  It will include a description of who
  is/are policyholder(s), insured(s),  applicable limits of liability, insured organizations,  which
  Coverage Parts and/or Endorsements are applicable, when coverage begins and
  ends, the Retroactive Date,  and other information required for you to understand the policy. If this page is missing or
  incorrect, please call or write us
  so we may send you a copy or
  issue any needed corrections.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
  Common
  Policy Conditions

  	
   

  	
  3

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  The conditions contained
  in this section apply to every Coverage Part and
  Endorsement(s) that is/are a part of this policy.  Rather
  than repeat them, we have
  consolidated them in this section.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
  Common
  Exclusions

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  The exclusions contained
  in this section apply to every Coverage Part and
  Endorsement(s) that is/are part of this policy. Additional exclusions, if any, are contained in the
  applicable Coverage Part and any Endorsements that are a part of this Policy.Rather than repeat them, we have
  consolidated the common exclusions in this section.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
  Common
  Definitions

  	
   

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  The definitions contained
  in this section apply to every Coverage Part and applicable Endorsement
  that is part of this policy.

  	
   

  	
   

  

 

2

 

	
   

  	
  Additional definitions, if
  any, are contained in the applicable Coverage Part or Endorsements that
  are part of this policy.  Rather than repeat them, we have consolidated the common
  definitions in this section.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
  Coverage
  Part(s)

  	
   

  	
  as applicable, Pages 14 and 20

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  The only applicable
  Coverage Parts are those shown on the Coverage Summary and that either has a
  premium shown or indicates the premium is “included”. Those applicable
  Coverage Parts provide you specific
  coverage agreements which detail the type of coverage(s) provided by
  this policy.  The policy
  may contain more than one Coverage Part, each providing different
  specific coverage agreements.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
  Endorsements

  	
   

  	
  Separate Pages

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  This policy may contain endorsements.
  Endorsements may be added to change policy terms
  and conditions that apply to you.  Endorsements to the policy at inception are listed on the
  Coverage Summary. Other endorsements may be added to the Policy during the policy period,  as described in Paragraph C of the Common Policy Conditions Section.

  	
   

  	
   

  

 

COMMON
POLICY CONDITIONS

 

A.                      The Policy Period

 

Coverage under this policy shall begin at 12:01 AM standard
time at the address and on the effective date shown in the Coverage Summary. If
this policy replaces a policy ending at noon, rather than 12:01
AM, coverage shall begin at noon when coverage under the old policy expires. Coverage shall expire at
12:01 AM, standard time, on the expiration
date shown in the Coverage Summary. If all or part of this policy is cancelled for any reason before
that date, the coverage will end at 12:01 AM standard time on the cancellation
date.

 

B.                      Premiums

 

1.                         All premiums
paid to us shall be computed in
accordance with our rules, rates,
rating plans, premiums and minimum premium applicable on the effective date of
the policy.

 

2.                         The first
premium is due at inception. Each renewal premium is due on or before the
beginning of the renewal period to which it applies. If any premium is not paid
when due, this policy will be
terminated in accordance with the cancellation provisions of this policy.

 

The policyholder must promptly notify us, in writing, of any change in the
information provided to us in any
application or other communication, including but not limited to: any change in
medical specialty; medical procedures performed; location of practice;
addition, substitution or termination of employees; partners, agents, or
independent contractors; and

 

3

 

insureds or, changes in
the corporation, partnership or professional associations or affiliations of
the policyholder. Such changes may
result in a condition that would not be covered by this policy or additional premium due to us.

 

C.                      Policy Changes

 

This policy can only be changed by a written
endorsement to the policy. This
endorsement must be signed by one of our authorized
representatives. Notice to our agent
or knowledge possessed by our agent
or any other person shall not act as a waiver by us of any requirement under the policy or change any part of this policy. Any notice to any person will not prevent us from asserting any rights under the
provisions of the policy.

 

We make changes in
our standard policy from time to time. While your policy is in effect, we may make a
change in our standard policy which
may broaden or restrict coverage under that policy.
However your coverage
will only be changed in the following manner:

 

1.                         If the change
broadens your coverage and the
change can be added to your policy without
requiring a premium increase, you will
automatically receive the benefit of the broadened coverage;

2.                         if the change
restricts your coverage, it will
not become effective until and unless your
policy is renewed.

 

D.                      Renewal and Cancellation

 

Renewal: Neither we nor the policyholder is required to renew this policy. Any renewal will be on policy forms then in effect. We may renew by issuing a Continuation
Coverage Summary specifying a new policy
period or by offering a completely new policy. If you reject
our offer of renewal, either by failure to pay the premium on or before the
effective date of such renewal or by written notice received by us, then any coverage under a new policy period or a completely new policy shall be null and void as of its
effective date.

 

Cancellation: You can cancel this policy at any time. We have the same right

 

To cancel, you must mail or deliver to us the original policy or written notice stating when the coverage is to end.

 

If we cancel the policy, we will mail or deliver to you written notice stating when the
coverage is to end. We will
ordinarily provide you ninety (90)
days notice of cancellation or non-renewal unless otherwise provided herein.
However, when the cancellation is due to any of the following reasons, we will only provide you ten (10) days notice of
cancellation:

 

1.                         Nonpayment of
premium under the terms of this policy;

2.                         The loss or
suspension of your license to
practice medicine;

3.                         The provision
by you of false or misleading
statements to us in our application or in the application
process;

 

After this policy has been in effect for ninety (90)
days or longer, we will not cancel the policy
except under the circumstances described in Paragraphs 1 through 3
above or Paragraphs 4 and 5 below:

 

4

 

4.                         Failure to
comply with our underwriting
requirements within ninety (90) days of the date of effectuation of coverage;
and

5.                         Substantial
change of risk covered by the policy.

 

If we cancel the policy for any reason specified in Paragraphs 4 or 5 above, we will provide you with a ninety (90) day cancellation notice.

 

If  the policy is
cancelled during the policy period by
us for any reason, we will provide you with a pro rata refund of the unearned premium. If the policy is cancelled during the policy period by you for any reason, we will provide you with a pro rata refund of the unearned premium, less a
cancellation charge equal to ten percent (10%) of the annual premium. We will provide any premium refund due
either at the time cancellation is effected or as soon as administratively
practicable after cancellation becomes effective, but the cancellation will
occur as scheduled, regardless of whether you
have received the refund on the date of cancellation.

 

E.                        Policy Territory

 

This policy applies to a medical incident occurring in the United
States of America, including its territories and possessions, Puerto Rico and
Canada. A claim must be made and
suit must be filed within the United States of America only.

 

F.                        Assignments and Transfers

 

Neither the policyholder nor anyone else covered under
this policy can assign or transfer
your or their interest in the policy. If you die or are adjudged mentally incompetent, the coverage
under the policy shall be
automatically terminated as to you and
your interest in the policy shall be automatically transferred
to your duly appointed legal
representative. Any unearned premium shall be calculated on a pro rata basis
from the termination date and returned according to the provisions of this policy.

 

G.                      Consent to Settle a Claim or
Suit

 

We will not settle
any claim against you without the First Named Insured’s written consent. Once a judgment has
been entered against you, we may
settle the claim against you without consent. Upon your death or total disability, consent to
settle transfers to us.

 

H.                      Other Insurance

 

A loss that is covered under
this policy may also be covered
under another insurance policy or
risk transfer instrument, including but not limited to, self-insured
retentions, deductibles, or other alternative arrangements.

 

The coverage provided by all
Coverage Parts of this policy shall
apply as excess insurance to any coverage under another insurance policy or risk transfer instrument,
including but not limited to, self-insurance retentions, deductibles or other
alternative arrangements.

 

5

 

We shall not be
liable under this policy for a
greater proportion of such loss than the applicable limit of liability under
this policy for such loss bears to
the total applicable limits of liability of all valid and collectible insurance
or risk transfer instruments, whether primary, contributory, excess, contingent
or otherwise.

 

These other insurance
provisions do not apply to any insurance policies
or risk transfer instruments written as specific excess insurance
over the limits of liability of this policy.

 

I.                           Recovering Damages from a Third Party

 

Any insured covered under this policy may be able to recover all or part
of a loss from a person or organization other than us; therefore, each insured must
do all that is reasonably possible to preserve any right of recovery. If we make a payment under this policy then the right of recovery shall
belong to us (on your behalf). If we recover more than we
have paid then the excess shall belong to the insured
that had the loss, but we
shall deduct our recovery expenses
first, including a reasonable attorneys’ fees.

 

J.                        Lawsuits Against Us

 

You may not bring
legal action against us concerning
this policy until:

 

1.                        You have fully complied with all the provisions of this policy, and

2.                        The amount of your obligation to pay has been decided.
Such amount can be set by court judgment or by written agreement between you, us and the claimant.

 

No person or organization
(including you) can join us in an action against you, and no one can sue us directly on a claim against you.

 

After liability against you has been determined by court judgment
or written agreement, the party making the claim
may be able to recover under this policy,
but only up to the limit of your coverage.
If you or your estate is adjudged bankrupt or becomes
insolvent, we will still be obligated under this policy.

 

K.                      Fraud and Misrepresentation

 

This policy shall be void if you or any insured covered under this policy
fail or refuse to disclose any relevant fact or information to us,
alter, conceal or destroy any relevant record or document, mislead us or defraud or lie to us about any relevant issue relating to
coverage under this policy, either
before or after a loss. Unintentional errors or omissions, however, will not
affect your rights under this policy.

 

L.                       Our Right to Inspect and Audit

 

You agree to let us inspect your property and business operations during normal business
hours while this policy is in
force. We are not, however,
required to make inspections. Nor will we
guarantee that your property or operations
are safe, or that they will conform to any laws, rules or regulations. You also agree to allow us to examine and audit your books and records that relate to this
insurance at any time up to three years after the policy ends. Any

 

6

 

inspection, surveys, reports
or recommendations shall relate only to insurability under the policy and premium charged.

 

M.                    What To Do If You Have a Claim

 

Notification:

 

1.                        Tell us what happened as soon as possible after the
claim has been asserted

2.                        Notify the
police if any laws may have been broken.

3.                        Send us copies of all claims or demands or legal documents as soon as possible.

 

Notice to us shall be given to:

 

National Medical
Professional Risk Retention Group, Inc.

c/o Eugene Smith, Defense Counsel

1715 Monroe Street

Fort Myers, FL 33901

Phone: (888)804-9556

Fax: (239)334-4100

 

When providing information
to us, be sure to include the time
and place of the event, the persons involved, the specific nature of the incident,
including the type of claim that
may result, and the names and addresses of any witnesses and injured people.

 

Cooperation:

 

You are required to
fully cooperate with us or our designee in the making of settlements
within the policy limits of
liability, the conduct of suits or other proceedings and enforcing any right of
contribution or indemnity against another who may be liable to you because of injury, damage, loss or expense. If we ask, you shall
attend hearings and trials; assist in obtaining and presenting evidence, and
obtaining the attendance of witnesses.

 

Do not agree to any
financial obligations or make any payments of money without our authorization. Doing so will result in our not making reimbursement of any payment
or obligation even though it may have been covered by this policy.

 

Keep your records in a safe place. Do not alter,
cancel or destroy your medical
records or commit any act that would interfere with our ability to defend a claim
or lawsuit against you.  Create a separate litigation file for all
items relating to a medical incident, claim or
lawsuit separate and apart from any medical records pertaining to the treatment
provided.

 

N.                      Extended Reporting Period Endorsement

 

1.                         If either you or we
cancel or non-renew this insurance or if a physician
is no longer rendering professional
services on behalf of the First
Named Insured or if we
cancel or refuse to renew this policy for reasons other than for non-payment of
premium, upon the payment of an additional premium, you shall have the

 

7

 

option to extend the period
during which claims can be made
against you and reported to us.  The
duration of the period under which claims can
be reported is unlimited. The offer of renewal terms and conditions or premium
different from those in effect prior to the renewal of this policy, shall not constitute failure or
refusal to renew.

 

2.                         Your right to
purchase optional Extended Reporting Period
Endorsement must be exercised by written notice to us not later than
thirty (30) days after the cancellation or termination date of the policy or the physician.  The
premium for the Extended Reporting Period
Endorsement will be based on the rules and rating plans we are using on the day the Extended Reporting Period Endorsement becomes
effective.

 

The Extended Reporting Period Endorsement will
not go into effect unless the First Named
Insured or the physician pay
the additional premium promptly when due. Once in effect, the entire premium
shall be fully earned, and the Extended
Reporting Period Endorsement may not be canceled.

 

3.                         The policy language that applied immediately
prior to the expiration date will
apply to all claims submitted
during the Extended Reporting Period
Endorsement. The broadening of coverage portion of the Policy Changes provision found in the
General Conditions section will not apply during the Extended Reporting Period Endorsement.

 

4.                         The Per Claim limit of liability that applied to you on the cancellation date will apply to
all claims submitted during the Extended Reporting Period Endorsement. The
Aggregate limit that applied to you on
the cancellation date is the maximum amount we
will pay for all claims covered
under this policy either prior to
the cancellation date or under the Extended
Reporting Period Endorsement

 

5.                         There will be
no charge for the Extended Reporting Period
Endorsement if any of the following events take place while the policyholder or insured physician are actively insured with us: if the insured physician

 

a.                          dies (we must
have a copy of the Death Certificate or other proof of death);

b.                         becomes disabled;
or,

c.                          fully retires from the practice of medicine at
age fifty-five (55) or more and has been continuously insured by us for the last five (5) years
immediately before retirement.

 

In the event you or the policyholder returns to the practice of medicine, the policyholder must notify us in writing. If you report a claim to us under
the Extended Reporting Period Endorsement and
we determine you were not fully retired from the
practice of medicine, no coverage will apply to the claim.

 

O.                     First Named Insured Responsibilities

 

By acceptance of this policy, the Insured named as the First
Named Insured in the Coverage Summary shall act on behalf of all Insureds for purposes including, but not
limited to, giving and receiving all notices and correspondence, the
cancellation or

 

8

 

 

non-renewal of this policy, the payment of premiums, and the
receipt of any return premiums that might be due under the policy. The First Named Insured shall exercise the Insured’s right to either reject or demand
the arbitration of any claim made
against the Insured in accordance
with our written instructions.

 

COMMON
EXCLUSIONS

 

We will not defend or pay
under this policy for:

 

A.                      Punitive or
exemplary damages unless coverage
for those types of damages are
required by the state where this policy is
issued.

 

B.                        Any injury or damages
resulting from an intentional tort, criminal act, or injury or damages
for acts or omissions while under the influence of intoxicants or
narcotics.

 

C.                        Any amounts
which you or any party must pay
under any unemployment or workers compensation, disability benefits or other
similar law.

 

D.                       Any injury or damages
to:

 

1.                         Your employee arising out of and in the course of
employment by you, or,

 

2.                         The spouse,
child, parent, brother or sister of that employee as a consequence of “1.”
above.

 

This exclusion applies to
any liability you have assumed
under any contract or agreement other than a contract covered by this policy. However this exclusion shall not
apply if you are providing
immediate medical or surgical care to an employee after an injury or there is a medical incident resulting from providing
of professional services to an
employee.

 

E.                        Any injury or damages
arising out of any:

 

1.                         Refusal to
employ;

 

2.                         Termination of
employment; or,

 

3.                         Coercion,
demotion, reassignment, defamation, harassment, humiliation, discrimination or
any other employment related practices, policies, acts or omissions.

 

F.                         Any injury or damages
arising out of claims asserting
any business or employment dispute, antitrust violations, unfair competition,
boycott, conspiracy, the independent tort of conspiracy, trademark, patent or
copyright infringement, misappropriation of trade secrets, breach of covenant
not to compete, non-competition agreement, interference with business relations
or contract, or any other act or omission which violates any statute, ordinance
or regulation imposing any fine, penalty or other sanction.

 

G.                        Any injury or damages
due to any acts of war.

 

9

 

H.                       Any injury or damages
due to your legal
responsibility resulting from the manufacturing, distributing, selling or
serving of alcoholic beverages, or if you are
the owner or lessor of locations used for such purposes.

 

I.                            Any required
return or withdrawal of fees or government payments to you;  the
payment of any fines, penalties, sanctions; or any multiplication of amounts
payable as penalties under this policy imposed
by law.

 

J.                           Any fees,
costs, expenses or other charges attributable to compensation of private legal
counsel you may retain to protect your personal interests, whether or not a
conflict of interest exists between you and
us.

 

K.                       Any damages based upon the Employee Retirement
Income Security Act of 1974, Public law 93-406 commonly referred to as the
Pension Reform Act of 1974, and amendments thereto or similar provisions of any
federal, state or local law.

 

L.                        Nuclear Energy Liability Exclusion

 

This policy shall not cover:

 

1.                         Under this policy or supplemental payments provision
for any injury,  sickness, disease, death or destruction;
or bodily injury or property
damage

 

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 (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.

 

2.                         Under any
Medical Payments Coverage Part, or under any supplementary payments provision
relating to (i) immediate medical or surgical relief; (ii) first aid
expenses incurred with respect to bodily injury, sickness, disease or death; or
(iii) bodily injury resulting from the hazardous
properties of nuclear material and
arising out of the operation of a nuclear
facility by any person or organization.

 

3.                         Under any
Coverage Part for any injury,  sickness, disease, death or destruction,
or bodily injury or property damage resulting from the hazardous properties of nuclear material,  if

 

a.                          the nuclear material is at any nuclear facility owned by, or operated by
or on behalf of, an insured or has
been discharged or dispersed there from, or

 

10

 

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, or bodily injury or property damage 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 subsection (c) applies only to any injury to or destruction of property at
such nuclear facility,  or property damage to such nuclear facility and any other property
thereat.

 

4.                         As used in this
exclusion:

 

hazardous
properties include radioactive, toxic or explosive properties;

 

nuclear
materials means source
materials, special nuclear
material or byproduct material;  however, nuclear
materials do NOT include materials used in the provision of
professional services that are
otherwise covered by this policy

 

source
material, special nuclear
material, and byproduct material have
the meanings given them in the Atomic Energy Act of 1954 or in any law
amendatory thereof; spent fuel means
any fuel element or fuel component, solid or liquid, which has been used or
exposed to radiation in a nuclear reactor;

 

waste means any byproduct material other than tailings or
waste produced by the extraction or concentration of uranium or thorium from
any ore processed primarily for its source
material content and resulting from the operation by any person or
organization of any nuclear facility as
defined in subparagraphs a. and b. of the definition of nuclear facility.

 

nuclear
facility means:

 

a.                          any nuclear
reactor,

b.                         any equipment
or device designed or used for (a) separating the isotopes of uranium or
plutonium, (b) processing or utilizing spent fuel, or (c) 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 place prepared or used for the storage or
disposal of waste, and includes the site on which any of the foregoing is
located, all operations conducted on such site and all premises used for such operations;
“nuclear reactor” means any apparatus designed or used to sustain nuclear
fission in a self-supporting chain reaction or to contain

 

11

 

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; “property damage” includes all forms of
radioactive contamination of property.

 

DEFINITIONS

 

Wherever used in this policy,  the
following words or phrases in bold type shall have these meanings:

 

Claim means any
expression of intent to hold you responsible
for damages arising from the
rendering or failure to render professional
services by you or by
someone for whom you are legally
responsible. If this policy is
terminated for any reason, we will
not accept as claims incident
reports that do not comply with the definition of claim.

 

Claim
expenses means the fees charged by an attorney we designate; and all other reasonable
fees, costs and expenses (including interest on that part of any judgment that
does not exceed the limit of your coverage)
which result from the investigation, adjustment, defense and appeal of a claim.  These
expenses must be incurred by us or
by you with our prior written consent. Claim expenses do not include awards of
attorney fees for a claimant.

 

Damages means all
amounts of money (legally recoverable) which are payable because of injury to which this insurance applies and
includes an award of attorney fees for a claimant.

 

Disabled means you have ceased your practice of medicine
as a result of your permanent,
complete and continuous inability to practice medicine, as certified by a
physician whose use we have
approved.

 

Expiration
date means the end of the policy period as
specified in the Coverage Summary or Continuation Coverage Summary, or if
earlier, the date this policy is
cancelled or terminated in accordance with Paragraph D (Renewal and
Cancellation) of the Common Policy Conditions
section of this policy.

 

Extended
Reporting Period Endorsement means the period of time
commencing immediately after the end of the policy
period for reporting claims arising
out of medical incidents which
occur on or after the Retroactive Date and
before termination date of the policy.

 

First Named
Insured means the first person or organization named in the
Coverage Summary of the policy.

 

Injury means bodily
injury, sickness, disease, mental or emotional distress sustained by a person,
or death resulting from such injury caused
by you.

 

Insured means any
person or entity covered under this policy.

 

Insured
organization means any partnership, professional corporation,
professional association, limited liability company, or other entity designated
as such on the Coverage Summary.

 

Insured
physician means any physician
designated as such on the Coverage Summary or Continuation Coverage
Summary.

 

12

 

Medical
incident means any act, error or omission in the providing of
or failure to provide professional services by
you or by someone for whom you are legally responsible. For the
purposes of this definition, treatment of mother and fetus (or fetuses) from
conception through postpartum care constitutes a single medical incident,  and a continuing course of treatment or repeated exposure to
substantially the same general conditions constitutes a single medical incident.

 

Physician means a
licensed physician, surgeon or podiatrist.

 

Physician
extenders means certified nurse practitioners, certified nurse
midwives, certified registered nurse anesthetists, physicians assistants,
psychologists, optometrists and chiropractors.

 

Policy means the
Professional Liability Insurance Policy,  the Coverage Summary or Continuation
Coverage Summary, the applicable Coverage Part or Parts and any
Endorsements attached to the policy.

 

Policyholder
means the person or organization designated as such in the Coverage
Summary or Continuation Coverage Summary.

 

Policy
period means the date and time when the policy
begins and ends as set forth in the Coverage Summary or Continuation
Coverage Summary.

 

Professional
services means providing or failing to provide medical
services, including making or failing to make a medical diagnosis.

 

Retroactive
date, as specified in the Coverage Summary or Continuation Coverage Summary,
means the earliest date on or after which a medical
incident would be covered under this policy.  No
coverage exists for a medical incident that
occurred prior to the retroactive date.

 

Retire means you completely withdraw from the practice
of medicine.

 

Sexual
misconduct means any sexual act, intimacy, assault,
molestation, harassment, exploitation, or any treatment, procedure, conduct, or
behavior that is considered undue sexual familiarity.

 

You and your means (a) the policyholder; (b) an insured physician;  or (c) any approved locum tenens
employed or engaged by the policyholder while
acting within the scope of his or her duties as such.

 

We, us and our
means National Medical Professional Risk Retention Group, Inc.

 

This policy is signed by our authorized representative, but is not
valid unless a Coverage Summary signed by our
authorized representative is attached.

 

13

 

PHYSICIAN PROFESSIONAL LIABILITY COVERAGE PART

 

This coverage applies only if indicated on the Coverage
Summary and a premium is shown.

 

This Coverage Part provides
protection against professional liability claims
that are brought against you by
or on behalf of a patient in your medical
practice. The coverage is written on a claims-made  basis which means that claims that are the result of medical incidents happening on or after the
retroactive date stated in the
Coverage Summary or Continuation Coverage Summary are covered, provided the claim is first made against you and reported to us while this Coverage Part is in
effect. We consider a claim to be made on the date you first notify us in writing regarding a claim
being made against you. No
coverage exists for claims first
made against you after the end of
the policy period unless, and then
only to the extent, an Extended Reporting
Period Endorsement applies as determined in the Conditions section
of the policy.

 

We will defend any
claim brought against you alleging damages covered under this Coverage Part. We will do this even if the claim is groundless and fraudulent. We will
not defend or pay a claim after
the applicable limits of liability of the Coverage Part have been used to
pay judgments or settlements.

 

A.                      Coverage Agreement

 

You are covered for
injury or damages arising from a medical incident resulting from:

 

1.                         Your providing or failure to provide professional services to a patient.

 

2.                         Your refusal to treat or to accept a person as a patient,
or for wrongful termination, transfer or abandonment of the care and treatment
of a patient.

 

3.                         Your providing or failure to provide professional services to any injured person
at the scene of an accident or emergency and/or failure to provide or arrange
for further medical treatment for the injured person.

 

4.                         Your providing or failure to provide professional services to anyone for and at
the request of a hospital, school, religious entity, non-profit organization,
or state or local governmental agency for which neither the requesting entity or
organization nor you expect,
charge, or receive any compensation.

 

5.                         Your service as a member of an insured organization, but that organization is only covered
for injury or damages resulting from the providing or
withholding of professional services to
a patient by you individually. The
organization is not protected for acts of any other members or employees of the
organization. There will be no coverage under this Physician Professional
Liability Coverage Part unless the organization is specifically named on
the Coverage Summary or Continuation Coverage Summary. The coverage under this
Paragraph 5 does not increase the limits of liability under this Coverage Part.
The insured organization shares your individual limits of liability under
this Coverage Part. However, if the policy also
provides coverage under the Professional Organization Coverage Part, then the insured organization will be provided
separate limits of liability under the Professional Organization Coverage Part.
Insurance provided under this Paragraph 5

 

14

 

is excess of and payable
only after all other valid insurance and self-insurance limits of coverage have
been exhausted paying settlements and judgments.

 

6.                         Your vicarious liability resulting from the providing or
failure to provide professional services by
your employees, leased employees
or loaned employees (other than physicians and
physician extenders) for whose
acts you are legally responsible.
This coverage is available only while these individuals are acting within the
scope of their employment by you. The
coverage under this Paragraph 6 does not increase the limits of liability under
this Coverage Part. However, if the policy also
provides coverage under the Professional Organization Coverage Part, then these
individuals will share the limits of liability provided under the Professional
Organization Coverage Part. Insurance provided under this Paragraph 6 is excess
of and payable only after all other valid insurance and self-insurance limits
of coverage have been exhausted paying settlements and judgments.

 

7.                         Your vicarious liability resulting from the providing or
failure to provide professional services by
physicians or physician extenders for whose acts you are legally responsible. This coverage
is available only when the physician or
physician extender is (A) employed
by you or the insured organization; (B) listed on
the Coverage Summary or Coverage Continuation Summary; and (C) individually
insured either by us or by another
company acceptable to us and you have furnished proof of such other
insurance (in the form of a Certificate of Insurance issued to us)  with
limits of liability acceptable to us. The
coverage under this Paragraph 7 does not increase the limits of liability under
this Coverage Part. . However, if the policy also
provides coverage under the Professional Organization Coverage Part, then these
individuals will share the limits of liability provided under the Professional
Organization Coverage Part. Insurance provided under this Paragraph 7 is excess
of and payable only after all other valid insurance and self-insurance limits
of coverage have been exhausted paying settlements and judgments.

 

8.                         Your vicarious liability for providing or failure to
provide professional services by
medical students and/or residents only when working in your medical practice, under your direct
supervision, while acting within the scope of a program approved by their
educational institution.

 

9.                         Your service on a formal hospital or professional society
board or committee. However, the coverage provided by this Paragraph 9 shall
not apply if you have other
insurance coverage or you are
covered under a self insurance plan, indemnity agreement or other agreement
providing some form of protection to you for
these services.

 

10.                   Your quality assurance activities when performed for the
purposes of evaluating and improving the quality of health care services and
for patient safety. We will cover you when you
participate as a member, a witness or a clinical practice advisor of
a formal credentialing, peer review, or quality assurance board or committee
formed by an organization for the purposes of improvement of patient safety or
the quality of health care services delivered to patients. Quality assurance
activities do not include your services
to an organization that reviews utilization, necessity and treatment issues
related to controlling health care costs unless that organization is added by

 

15

 

endorsement or Coverage
Part. However, the coverage provided by this Paragraph 10 shall apply in excess
of other insurance coverage provided under a self insurance plan, indemnity
agreement or other agreement providing some form of protection to you for these services.

 

11.                   Your providing or failure to provide professional services that results in the
personal injury to a patient resulting from false arrest, detention,
imprisonment, libel, slander, defamation of character, violation of an
individual’s right to privacy, mental anguish, mental shock or humiliation.
Personal injury arising out of sexual
misconduct is not covered. The coverage provided by this Paragraph
11 shall apply in excess of other insurance coverage provided under a self
insurance plan, indemnity agreement or other agreement providing some form of
protection to you for these
services.

 

12.                   Your negligence in placing, or causing to be placed,
erroneous medical information in a medical chart or an electronic medical
record. You also will be covered
if you relied upon erroneous
medical information in a medical chart or an electronic medical record in
providing professional services.

 

13.                   Your wrongful or unauthorized disclosure of patient
confidential or privileged medical information to a person or persons who are
not otherwise entitled to it.

 

B.                      Limits of Liability

 

1.                         The Per Claim limit of liability stated on the
Coverage Summary or Continuation Coverage Summary is the maximum amount we will pay for all damages and all claims or causes of action of any kind against all
organizations and persons covered by this Coverage Part that have arisen
from an event or a series of events. The providing or failure to provide professional services to a patient, even
when seen on different occasions and by different persons covered by this
Coverage Part, shall be considered as having arisen from a series of events,
and only one Per Claim limit of
liability shall apply. If more than one person or organization is covered under
this Coverage Part, the Per Claim limit
of liability will still be the maximum amount we
will pay.

 

2.                         The Aggregate
limit of liability stated on the Coverage Summary is the maximum amount we will pay for all damages and all claims or causes of action of any kind arising from claims reported in any single policy period.

 

C.                      Additional Benefits

 

In addition to the limits of
liability:

 

1.                         We will pay premiums for appeal bonds or to release
property that is being used to secure a legal obligation, but only bonds valued
up to the limit of liability of the policy.
We have no obligation to apply for or to furnish the bond.

 

2.                         We will pay claim
expenses, including the interest on that part of any judgment that
does not exceed the limit of liability. We
will pay all reasonable costs incurred at our
request to investigate or defend a claim or suit against you. This includes loss of

 

16

 

earnings not to exceed Five
Hundred Dollars ($500) per day for your attendance
at hearings or trials requested by us.

 

3.                         If you become subject to a state or federal
regulatory investigation, we will
pay the costs of defending the investigation up to, but not exceeding,
Twenty-Five Thousand Dollars ($25,000) in the annual aggregate for the policy period. We will not pay these costs
unless:

 

a.                          the
investigation is of a civil and not a criminal nature;

 

b.                         the
investigation is the outcome of injury or
damage resulting from a medical incident covered under this policy; and

 

c.                          you have informed us of
the investigation promptly after you received
notice of it and we receive your written notice of the investigation
during the policy period.

 

D.                      Exclusions

 

We will not defend
or pay under this Coverage Part for:

 

1.                         Any injury or damages
resulting from your liability
or administrative duties as a proprietor, superintendent, medical director,
administrative or executive officer of any of (but not limited to) the
following:

 

a.                          Hospital,
nursing home or sanitarium;

 

b.                         Clinic with bed
and board facilities,

 

c.                          Outpatient
surgery center, health care facility, laboratory, emergency medical service,
or,

 

d.                         Other business
enterprise.

 

This exclusion does not
apply to claims arising from
laboratory or health care facilities:

 

a.                          you maintain for testing of your own patients; or,

 

b.                         necessary to
the practice of your profession or
specialty.

 

2.                         Any injury or damages
for liability that you have
assumed under a contract or agreement. This exclusion does not apply to
liability you assume in a contract
with a health maintenance organization, preferred provider organization,
independent practice association or any other similar organization, if such
liability is attributable to your providing
or failure to provide professional services to
a patient and, as such, would be covered even in the absence of such a
contract.

 

17

 

3.                         Any injury or damages
resulting from your liability
for the acts or omissions of any physician or
physician extender you employ or
engage except as specifically provided under Paragraph 7 of Section A of
this Coverage Part.

 

4.                         Any injury or damages
resulting from your liability
for the providing or failure to provide professional
services to a patient by any employee of:

 

a.                          a hospital,
nursing home or sanitarium;

b.                         a clinic with
bed and board facilities; or,

c.                          an outpatient
surgery center, health care facility, laboratory or emergency medical service
facility.

 

5.                         Any injury or damages
you are liable for while on active duty in the United States
Military Service or Reserve or any National Guard Unit.

 

6.                         Any injury or damages
in the event you or
someone you instruct fraudulently
alters, defaces or falsifies any records.

 

7.                         Any injury or damages
resulting from your liability
arising out of your own sexual misconduct or the sexual misconduct of those for whom you are legally responsible. This exclusion
applies whether the sexual misconduct is
done under the guise of treatment or otherwise and with or without the consent
of the individual. However, we
will defend any claim until such
time as there is an admission of such activity, relations or contact or they
have otherwise been adjudicated. This exclusion does not apply if any injury or damages
are caused by sexual misconduct of
employees who are not physicians or
physician extenders if you are legally responsible for such
employees when the sexual misconduct occurs
and the sexual misconduct occurs
without your actual or implied
knowledge.

 

8.                         Any injury or damages
for liability arising out of the manufacturing, selling, distribution,
disposing, altering or dispensing of any product by you, or to any person. This exclusion does not apply to
dispensing of pharmaceuticals or medical appliances to your own patients when such dispensing
arises out of the rendering of or failure to render professional services to a patient.

 

9.                         Any injury or damages
resulting from claims to
which you or any entity for which you are serving is entitled to sovereign
immunity defense or limitation. However, this exclusion does not apply if you are not entitled to sovereign immunity
defense or limitation.

 

10.                   Any injury or damages
resulting from claims or
lawsuits arising out of your rendering
or failing to render professional services while
your license to practice your
profession or license to prescribe controlled substances has been suspended,
revoked, restricted or voluntarily surrendered.

 

11.                   Any injury or damages:

 

a.                          arising out of
a medical incident that happened
either before the retroactive date or
on or after the retroactive date if
on the effective date

 

18

 

 

of this policy you knew or had been told that the medical incident would result in a claim; or

 

b.        arising out of any claim that on the effective date of this policy is a reported medical incident, a pending claim or proceeding; or a paid claim; or

 

c.         arising out of a medical incident disclosed on our application(s) or during the
application process.

 

12.      Any injury or damages
resulting from any individual hired or employed by or on behalf of your patient.

 

19

 

 

PROFESSIONAL ORGANIZATION COVERAGE PART

 

This
coverage applies only if indicated on the Coverage Summary and a premium is
shown.

 

This Coverage Part provides
protection against professional liability claims
that are brought against the Professional Organization shown on the
Coverage Summary or Continuation Coverage Summary for damages resulting from the providing of or
failure to provide professional services to
a patient by a covered person.

 

For purposes of this
Coverage Part, covered person means

 

a.         the policyholder;

 

b.        an employee, leased employee
or loaned employee (other than a physician
or physician extender) of the
Professional Organization for whose acts the Professional Organization is
legally responsible, while acting within the scope of his or her employment by
the Professional Organization; and

 

c.         a physician or physician
extender for whose acts the Professional Organization is legally
responsible, but only when the physician or
physician extender is (A) employed
by the Professional Organization; (B) listed on the Coverage Summary or
Coverage Continuation Summary; and (C) individually insured either by us or by another company acceptable to us and the policyholder has furnished proof of such other insurance (in
the form of a Certificate of Insurance issued to us)  with limits
of liability acceptable to us.

 

The coverage is written on a
claims-made basis and applies to claims that
are the result of medical incidents happening
on or after the retroactive date stated
in the Coverage Summary or Continuation Coverage Summary are covered, provided
the claim is first made against
the Professional Organization and reported to us
while this insurance is in effect. We
consider a claim to be made on the date we are
first notified in writing regarding a claim against
the Professional Organization. No coverage exists for claims first made against the Professional
Organization after the end of the policy
period unless, and then only to the extent, an Extended Reporting Period Endorsement applies
as determined in the Conditions section of the policy.

 

We will defend any
claim alleging damages covered under this Coverage Part. We will do this even if the claim is groundless and fraudulent. We will not defend or pay a claim after the applicable limit of liability
has been used to pay judgments or settlements.

 

20

 

A.        Coverage
Agreement

 

The Professional
Organization is covered for injury or
damages arising from a medical incident resulting from:

 

1.        A covered person’s providing or failure to provide professional services to a patient.

 

2.        A covered person’s refusal to treat or to accept a person as a
patient, or for wrongful termination, transfer or abandonment of the care and
treatment of a patient.

 

3.        A covered person’s providing or failure to provide professional services to any injured person
at the scene of an accident or emergency and/or failure to provide or arrange
for further medical treatment for the injured person.

 

4.        A covered person’s providing or failure to provide professional services to anyone for and at
the request of a hospital, school, religious entity, non-profit organization,
or state or local governmental agency for which neither the requesting entity
or organization nor the covered person expects,
charges, or receives any compensation.

 

5.        A covered person’s providing or failure to provide professional services that results in the
personal injury to a patient resulting from false arrest, detention,
imprisonment, libel, slander, defamation of character, violation of an
individual’s right to privacy, mental anguish, mental shock or humiliation.
Personal injury arising out of sexual
misconduct is not covered. The coverage provided by this Paragraph 5
shall apply in excess of other insurance provided to or on behalf of the covered person by another or an agreement
providing some form of protection to the covered
person for these services.

 

6.        A covered person’s negligence in placing, or causing to be
placed, erroneous medical information in a medical chart or an electronic
medical record. The covered person also
will be covered if the covered person relied
upon erroneous medical information in a medical chart or an electronic medical
record in providing professional services.

 

7.        A covered person’s wrongful or
unauthorized disclosure of patient confidential or privileged medical
information to a person or persons who are not otherwise entitled to it.

 

B.        Limits of
Liability

 

1.        The Per Claim limit of liability stated on the
Coverage Summary or Continuation Coverage Summary is the maximum amount we will pay for all damages and all claims or causes of action of any kind against the
Professional Organization and all covered
persons that have arisen from an event or a series of events. The
providing or failure to provide professional
services to a patient, even when seen on different occasions and by
different covered persons, shall
be considered having arisen from a series of events, and only one Per Claim limit of liability shall

 

21

 

apply. If more than one
person or organization is covered under this Coverage Part, the Per Claim limit of liability will still be the
maximum amount we will pay.

 

2.        The Aggregate limit of
liability stated on the Coverage Summary is the maximum amount we will pay for all damages and all claims or causes of action of any kind arising from claims reported in any single policy period.

 

3.        Claim
expenses are in addition to the limit of liability.

 

C.        Additional Benefits

 

In addition to the limits of
liability:

 

1.        We will pay
premiums for appeal bonds or to release property that is being used to secure a
legal obligation, but only bonds valued up to the limit of liability of the policy.
We have no obligation to apply for or to furnish the bond.

 

2.        We will pay claim expenses, including the interest on
that part of any judgment that does not exceed the limit of liability. We will pay all reasonable costs incurred
at our request to investigate or defend a claim
or suit against the Professional Organization. This includes loss of
earnings not to exceed Five Hundred Dollars ($500) per day for attendance by a covered person at hearings or trials by us.

 

D.        Exclusions

 

We will not defend
or pay under this Coverage Part for:

 

1.        Any injury or damages
arising from the acts or omissions of person who is not a covered person.

 

2.        Any injury or damages:

 

a.         arising out of a medical incident that happened either
before the retroactive date or on
or after the retroactive date if
on the effective date of this policy the
covered person knew or had been
told that the medical incident would
result in a claim; or

 

b.        arising out of any claim that on the effective date of this policy is a reported medical incident;  a pending claim or
proceeding; or a paid claim, or

 

c.         arising out of a medical incident disclosed on our application(s) or during the
application process.

 

3.        Any injury or damages
resulting from claims as
to which a covered person or any
entity for which a covered person is
serving is entitled to sovereign immunity defense or limitation. However, this
exclusion does not apply if the covered
person is not entitled to sovereign immunity defense or limitation.

 

22

 

4.        Any injury or damages
resulting from a covered person’s liability
for providing or failure to provide professional
services to a patient by any employee of:

 

a.         a hospital, nursing home or
sanitarium;

 

b.        a clinic with bed and board
facilities; or,

 

c.         an outpatient surgery
center, health care facility, laboratory or emergency medical service facility.

 

5.        Any injury or damages
resulting from the Professional Organization’s liability for or
arising out of the sexual misconduct of
those for whom the Professional Organization is legally responsible. This
exclusion applies whether the sexual
misconduct is done under the guise of treatment or otherwise and
with or without the consent of the individual. However, we will defend any claim until such time as there is an
admission of such activity, relations or contact or they have otherwise been
adjudicated. This exclusion does not apply if any injury or damages are
caused by sexual misconduct of
employees of the Professional Organization who are not physicians or physician extenders if the Professional Organization is
legally responsible for such employees when the sexual misconduct occurs and the sexual misconduct occurs without the Professional Organization’s
actual or implied knowledge.

 

6.        Any injury or damages
for liability arising out of the manufacturing, selling,
distribution, disposing, altering or dispensing of any product by a covered person,  or to any person. This exclusion does not apply to dispensing
of pharmaceuticals or medical appliances to patients when such dispensing
arises out of a covered person’s rendering
of or failure to render professional services
to a patient.

 

7.        Any injury or damages
resulting from any individual hired or employed by or on behalf of a
patient of a covered person.

 

8.        Any injury or damages
resulting from a covered person’s liability
or administrative duties as a proprietor, superintendent, medical director,
administrative or executive officer of any of (but not limited to) the
following:

 

a.         Hospital, nursing home or
sanitarium;

 

b.        Clinic with bed and board
facilities,

 

c.         Outpatient surgery center,
health care facility, laboratory, emergency medical service, or,

 

d.        Other business enterprise.

 

This exclusion does not
apply to claims arising from
laboratory or health care facilities:

 

a.         a covered
person maintains for testing of patients of the covered person; or,

 

23

 

b.        necessary to the practice of
the covered person’s profession or
specialty.

 

9.        Any injury or damages
for liability that a covered
person has assumed under a contract or agreement. This exclusion
does not apply to liability a covered person assumes
in a contract with a health maintenance organization, preferred provider
organization, independent practice association or any other similar organization,
if such liability is attributable to a covered
person’s providing or failure to provide professional services to a patient.

 

10.      Any injury or damages
in the event a covered person or
someone a covered person instructs
fraudulently alters, defaces or falsifies any records.

 

11.      Any injury or damages
resulting from claims or
lawsuits arising out of a covered person’s rendering
or failing to render professional services while
the covered person’s license to
practice his or her profession or license to prescribe controlled substances
has been suspended, revoked, restricted or voluntarily surrendered.

 

24

 

NATIONAL
MEDICAL PROFESSIONAL RISK RETENTION GROUP, INC

 

Endorsement
No. 1 

Policy No. NMP-FL860G13

 

CANCELLATION ENDORSEMENT

 

This endorsement is attached
to and made a part of policy no. NMP-FL860013 and modifies the policy effective October 14, 2009.

 

The PROFESSIONAL LIABILITY POLICY COMMON POLICY CONDITIONS
D. Renewal and Cancellation is deleted and replaced by the
following:

 

D.       Renewal and Cancellation

 

Renewal: Neither we nor the policyholder is required to renew this policy. Any renewal will be on policy forms then in effect. We may renew by issuing a Continuation
Coverage Summary specifying a new Policy
Period or by offering a completely new policy.  If you reject our offer of renewal, either by
failure to pay the premium on or before the effective date of such renewal or
by written notice received by us, then
any coverage under a new policy period or
a completely new policy shall be
null and void as of its effective date.

 

If we non-renew the policy, we will mail or deliver to you written notice ninety (90) days prior to the expiration of
the policy.  The notice will state the reason for the
non-renewal.

 

Cancellation: You can cancel this policy at any time. We have the same right. To cancel, you must mail or deliver to us the original policy or written notice stating when the coverage is to end.

 

If we cancel the policy, we will mail or deliver to you written notice stating when the
coverage is to end. We will
ordinarily provide you ninety (90)
days notice of cancellation unless otherwise provided herein. However, then the
cancellation is due to any of the following reasons, we will only provide you ten
(10) days notice of cancellation.

 

1.         non-payment of premium under
the terms of this policy;

 

2.         the loss or suspension of your license to practice medicine.

 

After this policy has been in effect for ninety (90)
days or longer, or is a renewal of a prior policy, we will not cancel the policy
except under the circumstances described in #1 and #2 above.

 

Manuscript Endorsement

 

1

 

If we cancel the policy for any reason specified below, we will provide you with a ninety (90) day cancellation notice:

 

1.      The provision by you of false or misleading statements to us in our
application or in the application process;

 

2.      Failure to comply with our underwriting requirements within ninety
(90) days of the effective date of coverage;

 

3.      Failure to comply with
written policy terms, conditions
or contractual duties; and

 

4.      Substantial change of risk
covered by the policy.

 

If  the policy is
cancelled during the policy period by
us for any reason, we will provide you with a pro-rata refund of the unearned premium. If the policy is cancelled during the policy
period by you for any reason, we
will provide you with a pro-rata
refund of the unearned premium, less a cancellation charge equal to ten percent
(10%) of the annual premium. We
will provide any premium refund due either at the time cancellation is effected
or as soon as administratively practicable after cancellation becomes
effective. The cancellation will occur as scheduled regardless of whether or
not you have received the refund on the date of cancellation.

 

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

 

 

	
  Signed By:

  	
  /s/ Authorized Signatory

  	
   

  	
  January 11,
  2010

  
	
   

  	
  Authorized Signature or
  Countersignature 

  (In States where required)

  	
   

  	
  (Date)

  

 

2

 

NATIONAL
MEDICAL PROFESSIONAL RISK RETENTION GROUP, INC

 

Endorsement
No. 2 

Policy No. NMP-FL860013

 

CONSENT TO SETTLE A CLAIM OR
SUIT ENDORSEMENT

 

This endorsement is attached
to and made a part of policy no. NMP-FL860013 and modifies the policy effective October 14,2009 as
follows:

 

The Professional Liability
Policy Common Policy Conditions G. Consent to
Settle a Claim or Suit is
deleted and replaced by the following:

 

G.       Consent to Settle a Claim or Suit

 

Except where prohibited by
statute, we will not settle any claim against
you without the First Named Insured’s written consent. Once
a judgment has been entered against you, we
may settle the claim against you
without consent. Upon your death
or total disability, consent to settle transfers to us.

 

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

 

 

	
  Signed By:

  	
  /s/ Authorized Signatory

  	
   

  	
  January 11, 2010

  
	
   

  	
  Authorized Signature or
  Countersignature 

  (In States where required)

  	
   

  	
  (Date)

  

 

1

 

NATIONAL
MEDICAL PROFESSIONAL RISK RETENTION GROUP, INC

 

Endorsement
No. 3 

Policy No. NMP-FL860013

 

LIMITS OF LIABILITY
ENDORSEMENT

 

This endorsement is attached
to and made a part of policy no. NMP-FL860013 and modifies the policy effective October 14, 2009 as
follows:

 

The Limits of Liability on
the Coverage Summary are amended as follows and apply to each physician based
on the physician’s primary practice location:

 

Limits of Liability for Physicians Excluding “Stand-In” Physicians:

 

All states except North
Carolina, Nevada and Pennsylvania:

$250,000 per Claim per Physician / $750,000 annual aggregate per Physician

 

North Carolina and Nevada:

$1,000,000 per Claim per Physician / $3,000,000 annual aggregate per
Physician

 

Pennsylvania:

$500,000 per Claim per Physician / $1,500,000 annual aggregate per
Physician

 

Limits of Liability for “Stand-In”
Physicians:  Physicians engaged to provide physician supervision coverage for purposes
only as required by law on behalf of the Named
Insured are provided the following limits:

 

AH states including North
Carolina, Nevada and Pennsylvania:

$250,000 per Claim per Physician / $750,000 annual aggregate per Physician

 

Limits of Liability for
Professional Organization(s):

 

Not Applicable

 

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

 

 

	
  Signed By:

  	
  /s/ Authorized Signatory

  	
   

  	
  January 11,
  2010

  
	
   

  	
  Authorized Signature or
  Countersignature (In States where required)

  	
   

  	
  (Date)

  

 

1

 

 

NATIONAL
MEDICAL PROFESSIONAL RISK RETENTION GROUP, INC

 

Endorsement
No. 4

Policy No. NMP-FL860013

 

INSURED PERSONS &
ORGANIZATIONS ENDORSEMENT

 

This endorsement is attached
to and made a part of policy no. NMP-FL860013 and modifies the policy effective October 14, 2009 as
follows:

 

The complete listing of Insured Physicians and Retroactive Dates as amended from time to
time is on file with the Risk management Department of the First Named Insured.

 

It is understood and agreed
that there is no coverage provided under the Professional
Organization Coverage Part of this policy.

 

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

 

 

	
  Signed By:

  	
  /s/ Authorized Signatory

  	
   

  	
  January 11,
  2010

  
	
   

  	
  Authorized Signature or
  Countersignature 

  	
   

  	
  (Date)

  
	
   

  	
  (In States where required)

  	
   

  	
   

  

 

1

 

NATIONAL
MEDICAL PROFESSIONAL RISK RETENTION GROUP, INC

 

Endorsement
No. 5 

Policy No. NMP-FL860013

 

GENERAL CHANGE ENDORSEMENT

 

This endorsement is attached
to and made a part of policy no. NMP-FL860013 and modifies the policy effective October 14,2009 as
follows:

 

The following sections of
the PROFESSIONAL LIABILITY POLICY are
amended as follows:

 

COMMON
POLICY CONDITIONS — Sections E. Policy Territory and N. Extended Reporting
Period Endorsement are deleted and replaced with the following:

 

A.                      Policy
Territory

 

Policy
Territory means anywhere in the world, but only if the suit
for damages is brought within the United States of America (including its
territories and possessions), Puerto Rico and Canada.

 

N.                      Extended
Reporting Period Endorsement

 

1.                          If either you or we
cancel or non-renew this insurance or if a physician is no longer rendering professional services on behalf of the First Named Insured or if we cancel or refuse to renew this policy
for reasons other than for non-payment of premium, upon the payment of an
additional premium, you shall have
the option to extend the period during which claims
can be made against you and
reported to us. The duration of
the period under which claims can
be reported is unlimited. The offer of renewal terms and conditions or premium
different from those in effect prior to the renewal of this policy, shall not constitute failure or
refusal to renew.

 

2.                          The premium for
the Extended Reporting Period Endorsement will
be based on the rules and rating plans we
are using on the day the Extended
Reporting Period Endorsement becomes effective.

 

The Extended Reporting Period Endorsement will
not go into effect unless the First Named
Insured or the physician pays
the additional premium when due. Once in effect, the entire premium shall be
fully earned, and the Extended Reporting
Period Endorsement may not be canceled.

 

3.                          The policy language that applied immediately
prior to the expiration date will
apply to all claims submitted
during the Extended Reporting Period. The
broadening of coverage portion of the Policy Changes
provision found in the General Conditions section will not apply during the Extended Reporting Period Endorsement.

 

4.                          The Per Claim limit of liability that applied to you on the cancellation date will apply to
all claims submitted during the Extended Reporting Period Endorsement unless

 

1

 

otherwise endorsed. The
Aggregate limit that applied to you on
the cancellation date is the maximum amount we will pay for all claims covered under this policy either prior to the cancellation
date or under the Extended Reporting Period unless
otherwise endorsed.

 

5.                          There will be
no charge for the Extended Reporting Period
Endorsement if any of the following events take place while the policyholder or insured physician are actively insured with us: if the insured physician

 

a.                         dies (we must
have a copy of the Death Certificate or other proof of death);

b.                        becomes disabled; or,

c.                         fully retires from the practice of medicine at
age fifty-five (55) or more and has been continuously insured by us for the last five (5) years
immediately before retirement (inclusive of the Lexington Insurance Company policy
numbers on file with the First Named Insured for
the policy periods shown below):

 

1.          10/01/03-10/14/04

2.          10/14/04-10/14/05

3.          10/14/05-10/14/06

4.          10/14/06-10/14/07

 

In the event you or the policyholder returns to the practice of medicine, the policyholder must notify us in writing. If you report a claim to us under
the Extended Reporting Period Endorsement and
we determine you were not fully retired from the
practice of medicine, no coverage will apply to the claim.

 

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

 

 

	
  Signed By:

  	
  /s/ Authorized Signatory

  	
   

  	
  January 11,
  2010

  
	
   

  	
  Authorized Signature or
  Countersignature 

  	
   

  	
  (Date)

  
	
   

  	
  (In States where required)

  	
   

  	
   

  

 

2

 

NATIONAL
MEDICAL PROFESSIONAL RISK RETENTION GROUP, INC

 

Endorsement
No. 6 

Policy No. NMP-FL860013

 

EXCLUSIONS ENDORSEMENT

 

This endorsement is attached
to and made a part of policy no. NMP-FL860013 and modifies the policy effective October 14, 2009 as
follows:

 

The following sections of
the PROFESSIONAL LIABILITY POLICY are
amended as follows:

 

COMMON
EXCLUSIONS — The following are added:

 

M.                   Property
Damage. Any claim that arises out
of or results from property damage.

 

N.                      Personal
Injury. Any claim that arises out of or results from personal injury.

 

O.                      Harassment,
Unfair Discrimination, or Wrongful Discharge. Any claim that arises out of or
results from:

 

a.                          Harassment,
sexual or otherwise;

b.                         Unfair
discrimination; or

c.                          Wrongful
discharge

 

However, this exclusion does
not apply to claims brought by an insured’s patient against an insured who did not take part in harassment
or unfair discrimination. With respect to such claims brought by your patients,
we will provide a defense.
However, if an insured took a
direct part in harassment or unfair discrimination and intended to cause harm, we will have no further obligation to
defend.

 

P.                        Abuse or
Molestation. Any claim that arises
out of or results from actual or threatened abuse or molestation. However, this
exclusion does not apply to claims brought
by your patients against an insured who did not take direct part in the
abuse or molestation. With respect to such claims
brought by your patients,
we will provide a defense.
However, when it is determined an insured took
a direct part in the abuse or molestation; we
will have no further obligation to defend.

 

Q.                      Restraint of
Trade. Any claim that arises out
of or results from alleged violations of any law that prohibits the
monopolization or unlawful restraint of trade, business or profession.

 

R.                       Violation of
Law. Any claim that arises out of
or results from an act for which an insured is
convicted of a violation of any law or regulation that imposes criminal
penalties. However, this exclusion does not apply to the civil liability of an insured who has not taken part in the act
which gave rise to the conviction.

 

1

 

S.                        Pollution.

 

a.          Bodily injury which would
not have occurred in whole or part but for the actual, alleged, or threatened
discharge, dispersal, seepage, migration, manifestation, appearance, presence,
reproduction, release or escape of pollutants
at any time; or

 

b.         Any loss, cost expense,
charge, fine or penalty arising out of any:

 

i.             Request, demand or order
that any insured or others test for, monitor, clean up, remediate, remove,
contain, treat, detoxify or neutralize, rehabilitate or in any way respond to,
or assess the effects of pollutants;  or

ii.          Claim,  suit or administrative or regulatory
action by or on behalf of a governmental authority for damages because of testing for, monitoring,
removing, containing, treating, detoxifying or neutralizing, or in any way
responding to, or assessing the effects of pollutants.

 

T.                       Substance
Abuse. Any claim that arises from professional services performed while an insured is under the influence of alcohol,
narcotics, hallucinogenic agents or which involves any other substance abuse.

 

U.                      License
Suspension or Revocation. Any claim that
arises from professional services performed
while an insured’s license to
practice medicine or any other healthcare discipline is suspended or revoked.

 

V.                       Non-FDA
Approved Medication or Device. Any claim that
arises from the design, manufacture, use, distribution, promotion or sale of
any non-FDA approved medication, device, equipment or protocols.

 

W.                  Guarantee of Results. Any
claim that arises out of an insured’s guarantee
of results of any professional services or
professional committee services.

 

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

 

 

	
  Signed By:

  	
  /s/ Authorized Signatory

  	
   

  	
  January 11,
  2010

  
	
   

  	
  Authorized Signature or
  Countersignature 

  	
   

  	
  (Date)

  
	
   

  	
  (In States where required)

  	
   

  	
   

  

 

2

 

NATIONAL
MEDICAL PROFESSIONAL RISK RETENTION GROUP, INC

 

Endorsement
No. 7 

Policy No. NMP-FL860013

 

DEFINITIONS ENDORSEMENT

 

This endorsement is attached
to and made a part of policy no. NMP-FL860013 and modifies the policy effective October 14, 2009 as
follows:

 

The following sections of
the PROFESSIONAL LIABILITY POLICY are
amended as follows:

 

DEFINITIONS
— The DEFINITIONS of Claim, Insured Physician, Medical Incident and
Professional Services are deleted and replaced with the following:

 

Claim means a written
demand in which damages are alleged
or:

 

1.                         Cross claims,
lawsuits, screening panel proceedings; or

2.                         An arbitration
proceeding in which damages are
alleged and to which you must
submit or do submit with our consent;
or

3.                         Any other
alternative dispute resolution proceeding in which damages are alleged and to
which you submit with our consent.

 

Insured
Physician means any physician designated as such on the
Coverage Summary or Continuation Coverage Summary while acting within the
course and scope of their duties for you. Coverage
applies to insured physician administrators
while acting within the course and scope of their administrative duties for you.  Coverage
applies to insured physicians performing
committee or board services on or for your formal
review boards or committees. Coverage applies to insured physicians acting as your supervisors, teachers or proctors.
Coverage is included for physicians authorized
and appointed as locum tenens of any insured
physician.  Locum Tenens
share in the applicable limit of insurance with the insured physician and is
covered only for professional services provided
on your behalf.

 

Medical
incident means any act, error or omission in the providing of
or failure to provide professional services by
you or by someone for whom you are legally responsible. For the
purposes of this definition, treatment of mother and fetus (or fetuses) from
conception through postpartum care constitutes a single medical incident,  and a continuing course of treatment or repeated exposure to
substantially the same general conditions constitutes a single medical incident.  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 medical incident.  Such
medical incident will be deemed to
have first taken place at the time the first claim seeking such damages is made
and reported in accordance with the What to
Do if You Have a Claim section of this policy form.

 

Professional
Services means the diagnosis of, treatment or medical care
for, or medical consultation regarding, a patient’s medical condition. Professional Services also includes
Professional Committee Activities including the performance of any of the
following by an insured acting on your behalf:

 

1

 

1.                         Peer review or
quality assurance; or

2.                         Utilization
review on behalf of your patients
or on behalf of a state or county medical society.

 

The
following additional DEFINITIONS are added to the PROFESSIONAL LIABILITY
POLICY:

 

Employee means a person:

 

1.                         whose service
or labor is supervised by you; and

2.                         Who is on your payroll and subject to the withholding
of taxes, whether working on a full or part time basis. Independent contractors
are not employees.

 

Hearing means
investigations conducted by or administrative proceedings or actions brought by
state medical licensing departments.

 

Hearing
Costs means reasonable and customary fees and expenses of legal counsel and
expert consultants, including their costs and expenses of investigation and
travel, costs of transcripts, court filing fees and other reasonable costs and
expense incurred in the defense of an administrative proceeding or action.
However, the hearing costs associated
with appeals are considered part of those incurred during the original
proceeding. Hearing costs do not
include salary, charges or incidental expenses of the insured’s employees, officials or agents,
or any sanctions penalties, fines or other monetary penalties imposed upon physicians by a regulatory agency.

 

Personal
Injury means injury, other than bodily injury, arising out of one or more of
the following offenses:

 

1.                         False arrest,
detention or imprisonment;

2.                         Malicious
prosecution;

3.                         The wrongful
eviction from, wrongful entry into, or invasion of the right of private
occupancy of a room, dwelling or premises that a person occupies by or on
behalf of its owner, landlord, or lessor;

4.                         oral or written
publication of material that slanders or libels a person or organization or
disparages a person’s or organization’s goods, products or services; or

5.                         Oral or written
publication of material that violates a person’s right of recovery.

 

Pollutants mean any solid,
liquid, gaseous or thermal irritant or contaminant. The term includes but is
not limited to smoke, vapor or soot, fumes, acids, alkalis, chemicals,
asbestos, lead, waste, mold, mildew, spores, myotoxins, fungi, organic
pathogens or other micro organisms of any type, nature or description. Waste
includes medical waste from your operations
and materials to be recycled, reconditions or reclaimed.

 

Property
Damage means:

 

1.                         Physical harm,
including all resulting loss of use of that property. All such loss of use
shall be deemed to occur at the time of the physical harm that caused it; or

 

2

 

2.                         Loss of use of
tangible property that is not physically harmed. All such loss shall be deemed
to occur at the time of the occurrence that
caused it.

 

Unfair
Discrimination means the illegal treatment of persons based on
their race, color, creed, religion, age, sex, sexual preference, physical
disability, marital status, pregnancy or national origin.

 

Wrongful
Discharge means the unfair or unjust termination of an
employment relationship:

 

1.                         Which breaches
an implied agreement to continue employment;

2.                         Which inflicts
emotional distress upon the employee, invades
his or her privacy, or is the result of fraud; or

3.                         Which
retaliates for:

 

a.                          A refusal by
the employee to participate in
acts that violate public policy; or

b.                         The employee’s exercise of legal rights.

 

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

 

 

	
  Signed By:

  	
  /s/ Authorized Signatory

  	
   

  	
  January 11,
  2010

  
	
   

  	
  Authorized Signature or
  Countersignature

  	
   

  	
  (Date)

  
	
   

  	
  (In States where required)

  	
   

  	
   

  

 

3

 

NATIONAL
MEDICAL PROFESSIONAL RISK RETENTION GROUP, INC

 

Endorsement
No. 8 

Policy No. NMP-FL860013

 

PHYSICIAN PROFESSIONAL
LIABILITY COVERAGE PART ENDORSEMENT

 

This endorsement is attached
to and made a part of policy no. NMP-FL860013 and modifies the policy effective October 14, 2009 as
follows:

 

The following sections of
the PHYSICIAN PROFESSIONAL LIABILITY COVERAGE
PART are amended as follows:

 

C.                      Additional
Benefits is deleted and replaced with the following:

 

We will pay the
following benefits in addition to the limits of liability. However, these
benefits end when we have eroded the applicable limit of liability in the
payment of judgments or settlements of claims.

 

a.                          We will pay
prejudgment and post-judgment interest only on that part of any judgment we pay. We won’t pay any prejudgment
interest that accrues after we offer
to pay the limit of insurance that applies. We won’t pay any post judgment
interest that accrues after we pay
or offer to pay our share of the
judgment.

 

b.                          We will pay premiums for bonds that are required in a claim we defend. These include appeal bonds
and bonds to release property that is being used to secure a legal obligation.
However, we will only pay for
bonds valued up to the limit of insurance that applies. We have no obligation to apply for or
furnish these bonds.

 

c.                          Claim
expenses will be paid in addition to the limits of liability.
We will pay all reasonable costs incurred at our request to investigate or
defend a claim. This includes up
to $250 a day for actual loss of earnings by a covered person.

 

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

 

 

	
  Signed By:

  	
  /s/ Authorized Signatory

  	
   

  	
  January 11,
  2010

  
	
   

  	
  Authorized Signature or
  Countersignature 

  	
   

  	
  (Date)

  
	
   

  	
  (In States where required)

  	
   

  	
   

  

 

1

 

NATIONAL
MEDICAL PROFESSIONAL RISK RETENTION GROUP, INC

 

Endorsement
No. 9 

Policy No. NMP-FL860013

 

HEARING COSTS ENDORSEMENT

 

This endorsement is attached
to and made a part of policy no. NMP-FL860013 and modifies the policy effective October 14, 2009 as
follows:

 

The following sections of
the PHYSICIAN PROFESSIONAL LIABILITY COVERAGE
PART are amended as follows:

 

C.                      Additional Benefits
is amended by adding the following:

 

2.                         Reimbursement
of State of Federal Regulatory Investigation Hearing Costs

 

Limits applicable to this
coverage:

$25,000 Per Hearing per Physician 

$75,000 Aggregate Limit per Physician

 

We will reimburse hearing costs which arise out of hearings against insured physicians by any state or federal regulatory agency.
The limits shown above are the most we will
pay for hearing costs under this
endorsement.

 

Additional exclusions
applicable to this hearing costs coverage:

 

A.           Medical Staff Privileges. Hearings arising out of or resulting from
the appointment or reappointment to medical staff or revocation or restriction
of medical staff privileges by any healthcare facility or managed care
organization.

B.             Completing or Alteration of
medical Records. Hearings arising
out of or resulting from disputes over timely completion or alteration or
medical records.

C.             Fraud, Abuse, or
Non-Compliance. Hearings arising
out of or resulting from fraud, abuse, or willful non-compliance with the rules and
regulations of Medicaid/Medicare or any other program of a local, state or
federal agency.

D.            Substance Abuse. Hearings arising out of or resulting from
allegations of substance abuse by the physician.

E.              Improper Prescriptions. Hearings arising out of or resulting from
allegations of improper prescription of any medication. This includes
prescriptions provided without an appropriate history and physical.

 

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

 

 

	
  Signed By:

  	
  /s/ Authorized Signatory

  	
   

  	
  January 11,
  2010

  
	
   

  	
  Authorized Signature or
  Countersignature

  	
   

  	
  (Date)

  
	
   

  	
  (In States where required)

  	
   

  	
   

  

 

1

 

NATIONAL
MEDICAL PROFESSIONAL RISK RETENTION GROUP, INC

 

Endorsement
No. 10 

Policy No. NMP-FL860013

 

HIPAA ENDORSEMENT

 

This endorsement is attached
to and made a part of policy no. NMP-FL860013 and modifies the policy effective October 14, 2009 as
follows:

 

NATIONAL MEDICAL PROFESSIONAL RISK RETENTION GROUP, INC.

PHYSICIAN PROFESSIONAL LIABILITY INSURANCE POLICY

HIPAA BUSINESS ASSOCIATE ENDORSEMENT

 

Obligations
of the Company

 

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

 

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

 

a.                         To administer
this Policy or reinsurance agreements to which the Company 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
your 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 our operations and to carry out our legal
responsibilities, 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 us of any instances of which it is aware in
which the confidentiality of the information has been breached;

 

1

 

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

 

k.                         As required by
applicable law.

 

2.
Use appropriate safeguards to prevent use or disclosure of PHI other than as
provided by this Endorsement.

 

3. Report to you any use or
disclosure of PHI you provided us which are not permitted by this Endorsement
of which we become aware.

 

4. Ensure that any of our
agents or subcontractors to which we provide PHI received from you or created
or received on your behalf agrees to the same restrictions and conditions that
apply through this Endorsement to us with respect to PHI.

 

5. To the extent we maintain
PHI in a designated record set (as defined by the Privacy Rule) and at your
request, make such PHI available for access to you except for:

 

a.                         PHI maintained
by us which is a copy of PHI held by you; or

 

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

 

6. To the extent we maintain
PHI in a designated record set (as defined by the Privacy Rule) and at your
request, make available to you such PHI for amendment and incorporate any
amendments to PHI provided by you.

 

7. At your request, provide
documentation of disclosures of PHI made by us other than for purposes
described in Paragraph 1 above and provide the following information related to
each such disclosure for purposes of enabling you 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 us on your behalf available to the Secretary of the United
States Department

 

2

 

of Health and Human Services
for purposes of determining your compliance with the Privacy Rule.

 

Obligations
of  the Insureds

 

You shall:

 

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

 

2. Notify us of any
limitations in or changes to your Notice of Privacy Practices to the extent
that such limitation or change may affect our use or disclosure of PHI.

 

3. Notify us of any
restriction on the use or disclosure of PHI that you have agreed to in
accordance with the Privacy Rule to the extent that such restriction may
affect our use or disclosure of PHI.

 

Material Breach
Involving PHI

 

Upon your knowledge of a
material breach by us of the provisions of this Endorsement involving the use
or disclosure of PHI, you shall provide us with written notice of such breach,
including a description of the manner in which the circumstances leading to
such breach can be cured. You shall provide us 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, you may
terminate this Policy, if feasible. We acknowledge that if termination under
those circumstances is not feasible, you are obligated to report the violation
to the Secretary of the United States Department of Health and Human Services.

 

Effect of
Termination or Cancellation

 

We both acknowledge and
agree that PHI will be needed by us following the termination or cancellation
of the Policy for purposes described herein, and that it therefore is not
feasible for us to return or destroy all PHI received from you or on your
behalf. Therefore, we 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 we maintain such PHI.
These provisions shall survive termination of this Policy.

 

Applicability

 

This Endorsement applies to
you only if and to the extent you are 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 you to comply
with your obligations as a “covered entity” under the Privacy Rule and
does not constitute an agreement by us to be subject to any federal or state
law to which we are not otherwise subject.

 

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

 

 

	
  Signed By:

  	
  /s/ Authorized Signatory

  	
   

  	
  January 11,
  2010

  
	
   

  	
  Authorized Signature or
  Countersignature 

  	
   

  	
  (Date)

  
	
   

  	
  (In States where required)

  	
   

  	
   

  

 

3

 

NATIONAL
MEDICAL PROFESSIONAL RISK RETENTION GROUP, INC

 

Endorsement
No. 11 

Policy No. NMP-FL860013

 

REVISED HIPAA ENDORSEMENT

 

This endorsement is attached
to and made a part of policy no. NMP-FL860013 and modifies the policy effective February 17, 2010 as
follows:

 

This endorsement replaces
Endorsement No. 10 effective February 17, 2010:

 

HIPAA BUSINESS ASSOCIATE ENDORSEMENT

 

Obligations
of the Company

 

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 and subsequent modifications thereof
(the “Privacy Rule” and the “Security Rule,” respectively), the Company 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 Company 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 Company and to carry out the legal
responsibilities of the Company, 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

 

1

 

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 Company 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 Company 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, 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)
and any “breach” of “unsecured PHI” (as those terms are defined in the Health
Information Technology for Clinical Health Act (the “HITECH Act”)) of which the
Company becomes aware.

 

4.                         Ensure that any
of its agents or subcontractors to which the Company 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 Company with respect to
PHI, including without limitation, the obligation to implement reasonable and
appropriate safeguards to protect electronic PHI.

 

5.                         To the extent
the Company 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
Company 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 Company 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.

 

7.                         At the request
of an Insured, provide documentation of disclosures of PHI made by the Company
other than for purposes described in Paragraph 1 above and provide the
following information related to each such disclosure for purposes of

 

2

 

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 as modified by the HITECH Act.

 

8.                         Make its
internal practices, books, and records relating to the use and disclosure of PHI
received from or by the Company 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 Company to
use or disclose PHI in any manner prohibited to the Insured under the Privacy
Rule.

 

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

 

(3)                    Notify the Company 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
Company’s use or disclosure of PHI.

 

Material Breach Involving
PHI

 

Upon the Insured’s knowledge
of a material breach by the Company of the provisions of this Endorsement
involving the use or disclosure of PHI, the Insured shall provide the Company
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 Company 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 Company acknowledges that
if termination under those circumstances is not feasible, the Insured is
obligated to report the

 

3

 

violation to the Secretary
of the United States Department of Health and Human Services (the “Secretary”).

 

If the Company reports a
breach of unsecured PHI (as defined in the HITECH Act) to the Insured, the
Insured shall provide any notices required by the HITECH Act to (i) the
individuals whose PHI was involved in the breach, and (ii) the Secretary.
Upon request of the Insured and subject to applicable law, the Company shall
provide the Insured with information in its possession required for such
notices.

 

Effect of Termination or
Cancellation

 

The Company and the Insured
acknowledge and agree that PHI will be needed by the Company following the
termination or cancellation of the Policy for purposes described herein, and
that it therefore is not feasible for the Company to return or destroy all PHI
received from or on behalf of Insured. Therefore, the Company 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 Company 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 Company to be
subject to any United States federal or state law to which the Company is not
otherwise subject.

 

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

 

 

	
  Signed By:

  	
  /s/ Authorized Signatory

  	
   

  	
  January 11,
  2010

  
	
   

  	
  Authorized Signature or
  Countersignature 

  	
   

  	
  (Date)

  
	
   

  	
  (In States where required)

  	
   

  	
   

  

 

4

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