COLLECT & PROTECT INSURANCE The Underwriters hereby agree, to the extent and in the manner herein provided, to insure against physical loss or damage to property as per the Schedule from whatsoever cause arising, except as hereinafter specified, in the Territorial Limits, during the period and not exceeding the total sum Insured shown in the Schedule. When drawing up this insurance, Underwriters have relied on the information and statements which You have provided. DEFINITIONS Whenever the following words appear in this insurance they will have the meanings shown below. Collect & Protect Underwriters You/Your/Insured Schedule Period of Insurance Endorsement The Collection Nature of the Collection Specified Items Unspecified Items The name of the insurance contract. The Underwriters at Lloyd s (either individual or corporate) who subscribe to this insurance. The person, person(s) or entities named in the Schedule. The Schedule is part of this insurance and contains details of You, Your Home, the Sum and Nature of the Collection insured and the Period of Insurance. The length of time for which this insurance is in force, as shown in the Schedule and for which You have paid and Underwriters have accepted a premium. A change in the terms and/or conditions of this insurance. A single inanimate object or an accumulation of inanimate objects. The description of items that form part of the collection insured owned by You or held in trust by You or for which You are responsible. A list of items stating the individual value of each item as agreed by Underwriters. Items listed under a general heading for a total value without an individual agreed value for each item, but subject to the details as stated in Exclusion (A6) herein. Bank Vault/Safety Deposit Home A secure storage facility in any bank or safety depository within the Territorial Limits specified in the Schedule. The premises occupied by You and Your family as a private residence, but excluding outbuildings and other temporary structures at the address named in the Schedule and/or Endorsement, unless otherwise agreed and evidenced by Endorsement. Page 1 of 10
Other Named Premises Un-named Secure Premises Temporarily Personally Accompanied Territorial Limits Deductible Premises other than Your Home where all or part of Your Collection is kept, the address or addresses of which are named in the Schedule or by Endorsement. Secure premises, but excluding outbuildings and other temporary structures, in the United States of America and Canada where Your collection or part thereof may Temporarily be, including but not limited to Exhibition venues, Public Storage facilities, Conservators, Restorers,Valuers, Framers, Appraisers Museums and Hotel/Motel venues where You or an individual personally known to You and appointed as Your personal representative including exhibition commissioners are staying. A period not exceeding 30 consecutive days. Carryings made by You or an individual personally known to You and appointed as Your personal representative including exhibition commissioners, but this shall not extend to include any other party/person who carry goods for commercial gain or charge a fee for doing so. The geographical limitations applying to this insurance. The amount You pay in the event of a claim. Page 2 of 10
EXCLUSIONS This insurance does NOT cover: (A1) (A2) (A3) (A4) (A5) Loss or damage caused by inherent defect, wear and tear, gradual deterioration, fading or discolouration, moth, vermin or insects, rust or oxidation, corrosion, rot, mildew, fungus, drying, cleaning, dyeing, alteration, repair or restoration, warping or shrinkage; Loss or damage caused by climatic or atmospheric conditions or extremes of temperature, unless such loss or damage is directly caused by fire or frost or water damage; Loss or damage caused by Mechanical breakdown; Loss or damage caused by pressure waves from aircraft or other aerial devices travelling at sonic or supersonic speeds; Loss or damage due to confiscation, requisition, detention or destruction by or by order of any government, public or local authority; A6) Individual Items, Pairs of Items or Sets of Items with a market value in excess of USD 2,500 unless separately listed in the Specification; (A7) (A8) (A9) Postal or Courier Sendings in excess of USD 2,500 any one sending / any one parcel, unless specially agreed by Underwriters and evidenced herein and / or by Endorsement; Transits (excluding Postal or Courier Sendings as defined in A7) in excess 25% of Your Sum Insured unless specially agreed by Underwriters and evidenced herein and / or by Endorsement; Values in excess of 25% of Your Sum Insured whilst Temporarily housed at any Un-named Secure Premises unless specially agreed by Underwriters and evidenced herein and/or by Endorsement; (A10) Loss or damage unless the protection provided for the safety of the Interest Insured shall be maintained in good order throughout the currency of this insurance and shall be in use at all times when the insured premises are left unattended and that such protections shall not be withdrawn or varied to the detriment of the interests of the Underwriters without consent; (A11) Theft from unattended vehicles UNLESS the theft occurs from a private vehicle involved in a road traffic accident or vehicle breakdown whereby the vehicle is left unattended because the safety or well being of the occupants is compromised; (A12) Depreciation other than as a result of damage forming the subject of a valid claim hereunder; (A13) Loss or damage that is not directly associated with the incident that caused You to claim, except where that loss or damage is expressly included within this insurance; (A14) Loss due to unexplained loss and/or mysterious disappearance; (A15) Loss of property by reason of lack of title or defective title; (A16) Financial or physical loss arising from counterfeiting, forgery or fakes; (A17) Loss or damage due to earthquake, volcanic eruption, subterranean fire or any such convulsion of nature. Page 3 of 10
(A18) Any claim in respect of the property Insured hereunder, where the loss has been sustained by the Insured consequent upon handing over such Insured property to any third party against payment by: 1. Cheque, Banker s Draft, or any other form of Money Order, where such Cheque, Banker s Draft or other form of Money Order, shall prove to be false, fraudulent or otherwise invalid or uncollectible for any reason whatsoever; 2. Cash, Currency or Bank Notes which prove to be counterfeit, false or otherwise invalid for any reason whatsoever; 3. Credit Card, where the use of the same has been false, fraudulent or invalid, or when payment of the amount due is uncollectible for any reason whatsoever. (A19) Loss or destruction of or damage to any property whatsoever, or any loss or expenses whatsoever resulting or arising there from; any legal liability of whatsoever nature directly or indirectly caused by or contributed to by or arising from;- i) computer viruses, erasure or corruption of electronic data; ii) the failure of any equipment to correctly recognise the date or change of date; For the purpose of this exclusion computer virus means a corrupting instruction from an unauthorised source that propagates itself via a computer system or network. (B) Institute Radioactive Contamination, Chemical, Biological, Bio-Chemical And Electromagnetic Weapons Exclusion Clause (CL370) This clause shall be paramount and shall override anything contained in this insurance inconsistent therewith 1. In no case shall this insurance cover loss damage liability or expense directly or indirectly caused by or contributed to by or arising from 1.1 ionising radiations from or contamination by radioactivity from any nuclear fuel or from any nuclear waste or from the combustion of nuclear fuel 1.2 the radioactive, toxic, explosive or other hazardous or contaminating properties of any nuclear installation, reactor or other nuclear assembly or nuclear component thereof 1.3 any weapon or device employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter 1.4 the radioactive, toxic, explosive or other hazardous or contaminating properties of any radioactive matter. The exclusion in this sub-clause does not extend to radioactive isotopes, other than nuclear fuel, when such isotopes are being prepared, carried, stored, or used for commercial, agricultural, medical, scientific or other similar peaceful purposes 1.5 any chemical, biological, bio-chemical, or electromagnetic weapon. (C) Institute Cyber Attack Exclusion Clause (CL380) 1.1 Subject only to clause 1.2 below, in no case shall this insurance cover loss damage liability or expense directly or indirectly caused by or contributed to by or arising from the use or operation, as a means for inflicting harm, of any computer, computer system, computer software programme, malicious code, computer virus or process or any other electronic system. Page 4 of 10
1.2 Where this clause is endorsed on certificates covering risks of war, civil war, revolution, rebellion, insurrection, or civil strife arising therefrom, or any hostile act by or against a belligerent power, or terrorism or any person acting from a political motive, Clause 1.1 shall not operate to exclude losses (which would otherwise be covered) arising from the use of any computer, computer system or computer software programme or any other electronic system in the launch and/or guidance system and/or firing mechanism of any weapon or missile. (D) Terrorism Exclusion Clause (NMA 2920) Notwithstanding any provision to the contrary in the insurance or any Endorsement thereto it is agreed that this insurance excludes loss, damage, cost or expense of whatsoever nature directly or indirectly caused by, resulting from or in connection with any act of terrorism regardless of any other cause or event contributing concurrently or in any other sequence to the loss. 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 organisation(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 loss, damage, cost or expense of whatsoever nature directly or indirectly caused by, resulting from or in connection with any action taken in controlling, preventing, suppressing or in any way relating to any act of terrorism. If the Underwriters allege that by reason of this exclusion, any loss, damage, cost or expense is not covered by this insurance the burden of proving the contrary shall be upon the Insured. (E) War and Civil War Exclusion Clause This insurance excludes loss or damage directly or indirectly occasioned by, happening through or in consequence of war, invasion, acts of foreign enemies, hostilities (whether war be declared or not), civil war, rebellion, revolution, insurrection, military or usurped power or confiscation or nationalisation or requisition or destruction of or damage to property by or under the order of any Government or public or local authority; Page 5 of 10
CONDITIONS 1. Underinsurance Clause This insurance is subject to the condition of average, that is to say, if the property covered by this insurance shall at the time of any loss be of greater value than the sum insured hereby, the Insured shall only be entitled to recover hereunder such proportion of the said loss as the sum insured by this insurance bears to the total value of the said property. 2. Other Insurance Clause This insurance does not cover any loss or damage which at the time of the happening of such loss or damage is insured by or would, but for the existence of this insurance, be insured by any other existing insurance or policies had this insurance not been effected. 3. Due Diligence Clause The Insured shall take all reasonable precautions for the safety of the Collection and shall do and concur in doing things reasonably practicable to avoid or diminish any loss of or damage to the property insured. 4. Basis of Valuation Clause A. The basis of valuation for settlement will be: (i) for items individually specified, the value agreed by the Underwriters and shown in the Schedule. The Underwriters will not be liable for more than the agreed value; (ii) for items not individually specified, the market value immediately prior to the loss. Nevertheless in no event will the Underwriters be liable for more than the applicable Sum(s) Insured set out in the Schedule. B. In the event of partial loss of or damage to any item insured the amount payable will be the cost and expense of restoration plus any resulting depreciation but not exceeding the full value of that item, valued as in A above. 5. Arbitration Clause In the event that the Insured and the Underwriters fail to agree as to the amount of loss or damage, the same shall be ascertained by two competent and disinterested appraisers, the Insured and the Underwriters each selecting one, and the two so chosen shall first select a competent and disinterested umpire. The appraisers together shall then estimate and appraise the loss stating separately the sound values and damage, and failing to agree, shall submit their differences to the umpire. The award in writing of any two out of those three shall determine the amount of the loss. The Insured and the Underwriters shall pay the appraisers respectively selected by them and shall bear equally the expense of the appraisal and umpire. 6. Pairs and Sets Condition Underwriters shall be liable, in the terms and conditions of this insurance in the event of loss or damage to one or more items as defined herein, forming a pair or set, EITHER (a) OR (b) for the market value of the pair or set, Underwriters retaining any remaining part of the pair or set for the difference between the market value of the pair or set prior to the loss or damage and the market value after the loss or damage has occurred. Page 6 of 10
7. Subrogation and Salvage Underwriters are entitled at their own expense to take proceedings in Your name to recover any payment made under this insurance when they consider that there are rights of recovery against other parties and You must assist when reasonably required to do so. Underwriters have the right to the salvage of any item of the property insured, which is the subject of a claim under this Insurance. The Insured may not dispose of such item without the Underwriters permission. 8. Automatic Acquisition Clause If the Insured acquires additional items during the insurance period, limited to an aggregate of twenty per cent (20%) of the sum insured shown in the Schedule or Endorsement (if issued subsequent to the Schedule date), these items will be covered under the insurance providing the Insured notifies the Underwriters within sixty (60) days of acquisition and pays a pro rata additional premium. 9. Stillage Clause It is a condition precedent to the liability of Underwriters in respect of loss or damage as a result of water that all material kept on the ground floor or basement at the Insured s Home as shown in the Schedule or by Endorsement, apart from material held in locked safes or cabinets, must be stored on rails, shelves or stillages at least 15cm off the floor. 10. Claims Notification Clause It is a condition precedent to the liability of Underwriters that following any happening likely to give rise to a claim You will immediately:- a) inform the Police if Your claim relates to a theft or attempted theft incident and offer them all reasonable assistance in apprehension of the person(s) responsible and the recovery of the property stolen, b) inform the Police if Your claim relates to the accidental loss of an insured item, c) give notification to Underwriters within 30 days of the date of discovery of the incident, d) provide such information, evidence and assistance as Underwriters may reasonably require, e) ensure that all rights against carriers or other third parties are properly preserved and exercised. 11. Checked Baggage Clause It is a condition precedent to the liability of Underwriters that when it is necessary for the material insured hereunder to travel as checked luggage as a result of airline procedure or any regulatory control, such material shall be contained with a suitcase (or similar container) of rigid construction, which must be locked at all times unless airline or national regulations specify to the contrary. It is a further condition that no flight changes shall be undertaken once the material is checked in unless the Insured or his personally appointed representative has physical possession of all items of luggage whether checked or not. It is agreed that material travelling as checked luggage shall only be insured if the Insured or his personally appointed representative is checked in to travel on the same flight as the checked items. 12. Exhibition Clause It is a condition precedent to the liability of Underwriters that the property insured be contained within locked showcase(s) with keys removed or be in the physical possession of the Insured when being publicly displayed unless otherwise agreed by Underwriters. Page 7 of 10
13. Minimum Protections Clause It is a condition precedent to the liability of Underwriters that the primary location where the collection is held shall be secured with a minimum of:- Dead Bolt locks to all external doors; One or more Smoke detector(s) Unless otherwise agreed with Underwriters. 14. Loss of Keys Clause It is agreed that this insurance includes the cost of replacing locks to safes and outside doors in the Insured s Home following theft or loss of keys to a limit of USD250 in any one Period of Insurance, unless otherwise agreed by Underwriters, 15. Additional/Return Premium Waiver Clause It is agreed that whenever an additional or return premium of USD10 or less becomes due from or to the Insured as a result of alteration in coverage during the term or for any other reason, the collection of such premium from the Insured will be waived or the return of such premium to the Insured will not be made, as the case may be. 16. Law and Jurisdiction Clause In case of any dispute arising out of this insurance, the same shall be governed by the laws of the United States of America and subject to the exclusive jurisdiction of the U.S.A. courts. Should, on the effective date of the Certificate, any provision in it conflict with the laws of any state of the U.S.A. which are applicable to this certificate, that provision is amended to meet the minimum requirements of such laws. No suit, action or proceeding for the recovery of any claim under this Certificate shall be sustainable in any court of law or equity unless commenced within the 12 (twelve) months immediately following the date of the loss or damage which gives rise to the claim. However, should such limitation be invalid by law, then any such claim(s) shall be void unless such action, suit or proceeding be commenced within the shortest period of time permitted by law. 17. Service of Suit It is agreed that in the event of the failure of the Underwriters hereon to pay any amount claimed to be due hereunder, the Underwriters hereon, at the request of the Insured will submit to the jurisdiction of a Court of competent jurisdiction within the United States of America. Nothing in this Clause constitutes or should be understood to constitute a waiver of Underwriters rights to commence an action in any Court of competent jurisdiction within the United States, to remove an action to a United States District Court or to seek a transfer of a case to another Court as permitted by the laws of the United States of America or of any State of the United States. It is further agreed that service of process in such suit may be made upon Mendes and Mount, 725 South Figuroa Street, Los Angeles, CA 90017, U.S.A. and, that in any suit instituted against any one of them upon this Certificate, Underwriters will abide by the final decision of such Court or of any Appellate Court in the event of any appeal. The above named are authorised and directed to accept service of process on behalf of Underwriters in any such suit and/or upon the request of the Insured to give written undertaking to the Insured that they will enter a general appearance upon Underwriters behalf in the event such suit shall be instituted. Further, pursuant to any statute of any state, territory or district of the United States which makes provision therefore, Underwriters hereon hereby designate the Superintendent, Commissioner or Director of Insurance or other officer specified for that purpose in the statute, or his successor or successors in office, as their true and lawful attorney upon whom may be served any lawful process in any action, suit or proceeding instituted by or on behalf of the Insured or any beneficiary Page 8 of 10
hereunder arising out of this Certificate of Insurance and hereby designate the above-named as the person to whom the said officer is authorised to mail such process or a true copy thereof. 18. Misrepresentation and Fraud A) If the Insured has concealed or misrepresented any material fact or circumstance relating to this Insurance; or B) if a claim be made by or on behalf of the Insured which shall be in any respect unfounded or fraudulent or intentionally exaggerated or if any false declaration or statement be made in support thereof; all benefit under this Insurance shall be forfeited. 19. Cancellation of this Insurance Notwithstanding anything contained in this Certificate to the contrary, this Certificate may be cancelled by the Insured at any time by written notice or by surrendering of this Certificate of Insurance. This Certificate may also be cancelled by or on behalf of Underwriters by delivering to the Insured or by mailing to the Insured, by registered, certified or other first class mail, at the Insured s address as shown in this Certificate, written notice stating when, not less than ten (10) days thereafter, the cancellation shall be effective. The mailing of notice as aforesaid shall be sufficient proof of notice and this Certificate shall terminate at the date and hour specified in such notice. If this certificate shall be cancelled by the Insured, the Underwriters shall retain the customary short rate proportion of the premium hereon, except that if this Certificate is on an adjustable basis the Underwriters shall receive the earned premium hereon or the customary short rate proportion of any minimum premium stipulated herein whichever is the greater. If this Certificate shall be cancelled by or on behalf of the Underwriters, the Underwriters shall retain the pro rata proportion of the premium hereon, except that if this Certificate is on an adjustable basis the Underwriters shall receive the earned premium hereon or the pro rata proportion of any minimum premium stipulated herein whichever is the greater. Payment or tender of any unearned premium by the Underwriters shall not be a condition precedent to the effectiveness of cancellation but such payment shall be made as soon as practicable. If the period of limitation relating to the giving of notice is prohibited or made void by any law controlling the construction thereof, such period shall be deemed to be amended so as to be equal to the minimum period of limitation permitted by such law. 20. Several Liability Notice The subscribing Underwriters obligations under contracts of insurance to which they subscribe are several and not joint and are limited solely to the extent of their individual subscriptions. The subscribing Underwriters are not responsible for the subscription of any co-subscribing insurer who for any reason does not satisfy all or any part of its obligations 21. Sanction Limitation and Exclusion Clause No (re)insurer shall be deemed to provide cover and no (re)insurer shall be liable to pay any claim or provide any benefit hereunder to the extent that the provision of such cover, payment of such claim or provision of such benefit would expose that (re)insurer to any sanction, prohibition or restriction under United Nations resolutions or the trade or economic sanctions, laws or regulations of the European Union, United Kingdom or United States of America. Page 9 of 10
22. Wine Clause In respect of wine being covered hereunder, cover excludes Contamination, Discolouration, Recorking, Inherent Vice, Wine Fly, Ullage (Shortage or shortfall, for example, through evaporation or spillage), unexplained shortages or mysterious disappearance, loss of label and shall cease in respect of a bottle on its opening. 23. Gun Clause In respect of guns being covered hereunder, this insurance does not cover loss or damage to the insured gun(s) caused by rusting, bursting or derangement. 24. Firearm Exclusion Clause It is understood and agreed that this insurance excludes all losses and/or liability arising directly or indirectly from the actual or alleged use of any firearm in the care, custody or control of the Insured absolutely. Page 10 of 10