WAR, MILITARY ACTION AND TERRORISM EXCLUSION



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COMMERCIAL AUTO CA 23 37 01 02 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. EXCLUSION This endsement modifies insurance provided under the following: BUSINESS AUTO COVERAGE FORM BUSINESS AUTO PHYSICAL DAMAGE COVERAGE FORM MOTOR CARRIER COVERAGE FORM TRUCKERS COVERAGE FORM With respect to coverage provided by this endsement, the provisions of the Coverage Fm apply unless modified by the endsement. A. Changes In Liability Coverage The War Exclusion under Section II Liability Coverage is replaced by the following: "Bodily injury", "property damage" "covered pollution cost expense" arising, directly indirectly, out of: a. War, including undeclared civil war; b. Warlike action by a military fce, including action in hindering defending against an actual expected attack, by any government, sovereign other authity using military personnel other agents; power, action taken by governmental authity in hindering defending against any of these; d. "Terrism", including any action taken in hindering defending against an actual expected incident of "terrism"; regardless of any other cause event that contributes concurrently in any sequence to the injury damage. However, with respect to "terrism", this exclusion only applies if one me of the following are attributable to an incident of "terrism": by the "terrism" and business interruption losses sustained by owners occupants of the damaged property. F the purpose of that would be covered by any insurance but f the application of any terrism exclusions; b. Fifty me persons sustain death serious physical injury. F the purposes of this provision, serious physical injury means: risk of death; (2) Protracted and obvious physical disfigurement; (3) Protracted loss of impairment of the function of a bodily member gan; c. The "terrism" involves the use, release escape of nuclear materials, directly indirectly results in nuclear reaction radiation radioactive contamination; d. The "terrism" is carried out by means of the dispersal application of pathogenic poisonous biological chemical materials; CA 23 37 01 02 ISO Properties, Inc., 2002 Page 0 of 6

e. Pathogenic poisonous biological chemical purpose of the "terrism" was to release such Paragraphs (a) and (b), immediately preceding, describe the thresholds used to measure the magnitude of an incident of "terrism" and the circumstances in which the threshold will apply f the purpose of determining whether the Terrism Exclusion will apply to that When the Terrism Exclusion applies to an incident of "terrism", there is no coverage under this Coverage Part. In the event of any incident of "terrism" that is not subject to the Terrism Exclusion, coverage does not apply to any loss damage that is otherwise Multiple incidents of "terrism" which occur within out in concert to have a related purpose B. Changes In Physical Damage And Trailer Interchange Coverages The War Or Military Action Exclusion under the Trailer Interchange Coverage Section of the Mot Carrier Coverage Fm, Truckers Coverage Fm and Truckers endsement, if attached, and the War Or Military Action Exclusion under the Physical Damage Coverage Section of all Coverage Fms are replaced by the following: (1) War, including undeclared civil war; (2) Warlike action by a military fce, including action in hindering defending against an actual expected attack, by any government, sovereign other authity using military personnel other agents; (3) Insurrection, rebellion, revolution, usurped power, action taken by governmental authity in hindering defending against any of these; (4) "Terrism", including any action taken in hindering defending against an actual expected incident of "terrism". However, with respect to "terrism", this exclusion only applies if one me of the following are attributable to an incident of "terrism": (1) The total of insured damage to all types of by the "terrism" and business interruption losses sustained by owners occupants of the damaged property. F the purpose of that would be covered by any insurance but f the application of any terrism exclusions; (2) The "terrism" involves the use, release escape of nuclear materials, directly indirectly results in nuclear reaction radiation radioactive contamination; (3) The "terrism" is carried out by means of the dispersal application of pathogenic poisonous biological chemical materials; (4) Pathogenic poisonous biological chemical purpose of the "terrism" was to release such Paragraph (1), immediately preceding, describes the threshold used to measure the magnitude of an incident of "terrism" and the circumstances in which the threshold will apply f the purpose of determining whether the Terrism Exclusion will apply to that When the Terrism Exclusion applies to an incident of "terrism", there is no coverage under this Coverage Part. In the event of any incident of "terrism" that is not subject to the Terrism Exclusion, coverage does not apply to any loss damage that is otherwise Multiple incidents of "terrism" which occur within out in concert to have a related purpose Page 2 of 6 ISO Properties, Inc., 2002 CA 23 37 01 02

C. Changes In Garagekeepers Coverage If the Garagekeepers Coverage endsement Garagekeepers Coverage Customers' Sound Receiving Equipment endsement are attached, the following exclusion is added: We will not pay f "loss" caused by resulting from the following. Such "loss" damage is excluded regardless of any other cause event that contributes concurrently in any sequence to the "loss". (1) War, including undeclared civil war; (2) Warlike action by a military fce, including action in hindering defending against an actual expected attack, by any government, sovereign other authity using military personnel other agents; (3) Insurrection, rebellion, revolution, usurped power, action taken by governmental authity in hindering defending against any of these; (4) "Terrism", including any action taken in hindering defending against an actual expected incident of "terrism". However, with respect to "terrism", this exclusion only applies if one me of the following are attributable to an incident of "terrism": (1) The total of insured damage to all types of by the "terrism" and business interruption losses sustained by owners occupants of the damaged property. F the purpose of that would be covered by any insurance but f the application of any terrism exclusions; (2) The "terrism" involves the use, release escape of nuclear materials, directly indirectly results in nuclear reaction radiation radioactive contamination; (3) The "terrism" is carried out by means of the dispersal application of pathogenic poisonous biological chemical materials; (4) Pathogenic poisonous biological chemical purpose of the "terrism" was to release such Paragraph (1), immediately preceding, describes the threshold used to measure the magnitude of an incident of "terrism" and the circumstances in which the threshold will apply f the purpose of determining whether the Terrism Exclusion will apply to that When the Terrism Exclusion applies to an incident of "terrism", there is no coverage under this Coverage Part. In the event of any incident of "terrism" that is not subject to the Terrism Exclusion, coverage does not apply to any loss damage that is otherwise Multiple incidents of "terrism" which occur within out in concert to have a related purpose D. Changes In Auto Medical Payments If the Auto Medical Payments Coverage endsement is attached, then Exclusion C.6. is replaced by the following: 6. "Bodily injury" arising, directly indirectly, out of: a. War, including undeclared civil war; b. Warlike action by a military fce, including action in hindering defending against an actual expected attack, by any government, sovereign other authity using military personnel other agents; power, action taken by governmental authity in hindering defending against any of these; d. "Terrism", including any action taken in hindering defending against an actual expected incident of "terrism"; regardless of any other cause event that contributes concurrently in any sequence to the injury damage. CA 23 37 01 02 ISO Properties, Inc., 2002 Page 3 of 6

However, with respect to "terrism", this exclusion only applies if one me of the following are attributable to an incident of "terrism": whether the $25,000,000 threshold is exceeded, we will include all insured damage sustained by property of all persons and entities affected by the "terrism" and business interruption losses sustained by owners occupants of the damaged property. F the purpose of this provision, insured damage means damage that is covered by any insurance plus damage that would be covered by any insurance but f the application of any terrism exclusions; b. Fifty me persons sustain death serious physical injury. F the purposes of this provision, serious physical injury means: risk of death; (2) Protracted and obvious physical disfigurement; (3) Protracted loss of impairment of the function of a bodily member gan; c. The "terrism" involves the use, release escape of nuclear materials, directly indirectly results in nuclear reaction radiation radioactive contamination; d. The "terrism" is carried out by means of the dispersal application of pathogenic poisonous biological chemical materials; e. Pathogenic poisonous biological chemical materials are released, and it appears that one purpose of the "terrism" was to release such Paragraphs a. and b., immediately preceding, describe the thresholds used to measure the magnitude of an incident of "terrism" and the circumstances in which the threshold will apply f the purpose of determining whether the Terrism Exclusion will apply to that When the Terrism Exclusion applies to an incident of "terrism", there is no coverage under this Coverage Part. In the event of any incident of "terrism" that is not subject to the Terrism Exclusion, coverage does not apply to any loss damage that is otherwise excluded under this Coverage Part. Multiple incidents of "terrism" which occur within a seventy-two hour period and appear to be carried out in concert to have a related purpose common leadership shall be considered to be one E. If Uninsured and/ Underinsured Motists Coverage is attached, then the following exclusion is added: This insurance does not apply to: "Bodily injury" "property damage", if applicable, arising, directly indirectly, out of: a. War, including undeclared civil war; b. Warlike action by a military fce, including action in hindering defending against an actual expected attack, by any government, sovereign other authity using military personnel other agents; power, action taken by governmental authity in hindering defending against any of these; d. "Terrism", including any action taken in hindering defending against an actual expected incident of "terrism" regardless of any other cause event that contributes concurrently in any sequence to the injury damage. However, with respect to "terrism", this exclusion only applies if one me of the following are attributable to an incident of "terrism": by the "terrism" and business interruption losses sustained by owners occupants of the damaged property. F the purpose of that would be covered by any insurance but f the application of any terrism exclusions; b. Fifty me persons sustain death serious physical injury. F the purposes of this provision, serious physical injury means: risk of death; Page 4 of 6 ISO Properties, Inc., 2002 CA 23 37 01 02

(2) Protracted and obvious physical disfigurement; (3) Protracted loss of impairment of the function of a bodily member gan; c. The "terrism" involves the use, release escape of nuclear materials, directly indirectly results in nuclear reaction radiation radioactive contamination; d. The "terrism" is carried out by means of the dispersal application of pathogenic poisonous biological chemical materials; e. Pathogenic poisonous biological chemical purpose of the "terrism" was to release such Paragraphs a. and b., immediately preceding, describe the thresholds used to measure the magnitude of an incident of "terrism" and the circumstances in which the threshold will apply f the purpose of determining whether the Terrism Exclusion will apply to that When the Terrism Exclusion applies to an incident of "terrism", there is no coverage under this Coverage Part. In the event of any incident of "terrism" that is not subject to the Terrism Exclusion, coverage does not apply to any loss damage that is otherwise Multiple incidents of "terrism" which occur within out in concert to have a related purpose F. Changes In Personal Injury Protection Coverage 1. If Personal Injury Protection, no-fault, other similar coverage is attached, and: a. Contains, in whole in part, a War exclusion, that exclusion is replaced by Paragraph 2. b. Does not contain a War exclusion, Paragraph 2. is added. 2. This insurance does not apply to: "Bodily injury" arising, directly indirectly, out of: a. War, including undeclared civil war; b. Warlike action by a military fce, including action in hindering defending against an actual expected attack, by any government, sovereign other authity using military personnel other agents; power, action taken by governmental authity in hindering defending against any of these; d. "Terrism", including any action taken in hindering defending against an actual expected incident of "terrism" regardless of any other cause event that contributes concurrently in any sequence to the injury damage. However, with respect to "terrism", this exclusion only applies if one me of the following are attributable to an incident of "terrism": whether the $25,000,000 threshold is exceeded, we will include all insured damage sustained by property of all persons and entities affected by the "terrism" and business interruption losses sustained by owners occupants of the damaged property. F the purpose of this provision, insured damage means damage that is covered by any insurance plus damage that would be covered by any insurance but f the application of any terrism exclusions; b. Fifty me persons sustain death serious physical injury. F the purposes of this provision, serious physical injury means: risk of death; (2) Protracted and obvious physical disfigurement; (3) Protracted loss of impairment of the function of a bodily member gan; c. The "terrism" involves the use, release escape of nuclear materials, directly indirectly results in nuclear reaction radiation radioactive contamination; d. The "terrism" is carried out by means of the dispersal application of pathogenic poisonous biological chemical materials; e. Pathogenic poisonous biological chemical materials are released, and it appears that one purpose of the "terrism" was to release such CA 23 37 01 02 ISO Properties, Inc., 2002 Page 5 of 6

Paragraphs a. and b., immediately preceding, describe the thresholds used to measure the magnitude of an incident of "terrism" and the circumstances in which the threshold will apply f the purpose of determining whether the Terrism Exclusion will apply to that When the Terrism Exclusion applies to an incident of "terrism", there is no coverage under this Coverage Part. In the event of any incident of "terrism" that is not subject to the Terrism Exclusion, coverage does not apply to any loss damage that is otherwise excluded under this Coverage Part. Multiple incidents of "terrism" which occur within a seventy-two hour period and appear to be carried out in concert to have a related purpose common leadership shall be considered to be one G. The following definition is added to the Definitions Section: "Terrism" means activities against persons, ganizations property of any nature: 1. That involve the following preparation f the following: a. Use threat of fce violence; b. Commission threat of a dangerous act; c. Commission threat of an act that interferes with disrupts an electronic, communication, infmation, mechanical system; and 2. When one both of the following applies: a. The effect is to intimidate coerce a government the civilian population any segment thereof, to disrupt any segment of the economy; b. It appears that the intent is to intimidate coerce a government, to further political, ideological, religious, social economic objectives to express ( express opposition to) a philosophy ideology. Page 6 of 6 ISO Properties, Inc., 2002 CA 23 37 01 02