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2020/06/02 RRL Enterprises, Inc. DBA Midstate Automotive Equipment Certificate of Liability InsuranceRRLENTE-01 DBROV ACORO� CERTIFICATE OF LIABILITY INSURANCE DATE 0712312020Y) D712312020 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER License # OE02096 I CONTACT Mary Doig DiBuduo 8: DeFendis Insurance Brokers, LLC PHONE 541 Bullard Avenue A/C. No, Ext): (559) 323-6787 Clovis, CA 93612 . ma .doi dibu INSURED RRL Enterprises, Inc. DBA Midstate Automotive Equipment 1865 Herndon Avenue Suite 131 Clovis, CA 93611 COVERAGES CERTIFICATE NUMBER: INSURER A: General IAiC,No):(559) 323-1871 m WING COVERAGE NAIC ; :ornpany of Wisconsin 24414 surance Company 16045 REVISION NUMBER - THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR ADDLSUBR POLICY EFF POLICY EXP LTRTYPE OF INSURANCE POLICY NUMBERUNWOM LIMITS A X COMMERCIAL GENERAL LIABILITY CLAIMS -MADE LX] OCCUR X X BPK000618701 07/25/2020 07/25/2021 EACH OCCURRENCE S 1,000,000 DAMAGE T 2 E N T E D 100,000 MED EXP (Any oneperson) 5,000 PERSONAL SADVJNJURY 3 1,000,000 GEN'LAGGREGATE ILIMIT APPLIES PER: X POLICYI PECOT- LOC GENERALAGGREGATE 2,000,000 PRODUCTS - OMPIOP AGG 2,00O,000 $ OTHER: A AUTOMOBILE LIABILITY .�BRF�d�.@D SINa3LE UA41T 1 QQQ QQQ _tom BODILY INJURY Par erson X BCA000359101 07/25/2020 07/25/2021 BODILY INJURY Peraccid OWNED X SCHEDULED AUTOS ONLY AUTOS JANYAUTO X PROPERTY DAMAGE (Per accident) HIRED X AU70Sl4NY AUTOS ONLY AU7 UMBRELLA LIAR OCCUR EACH OCCURRENCE AGGREGATE EXCESS LIAB CLAIMS -MADE DED RETENTION $ B WORKERS COMPENSATION AND EMPLOYERS' LIABILITY ANY PROPREI ETOR/PXCLUDE/EXECUTIVE W AaSOry 7n NH) EXCLUDED? ���� N J A 7600021589201 06/02/2020 06/02/2021 j X PER j OTH- + T E.L. EACH ACCIDENT 1,000,000 E.L DISEASE - EA EMPLOY 1,000,000 If yes, describe under DESCRIPTION OF PERATJONS below E.L. DISEASE - POLICY LIMIT 1,000,000 DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached If more space is required) Contract # City of Menifee and its officers, employees, agents and authorized volunteers are added as additional insured as per AH CG8623 0917 and CG2001 0413 and AH CA 8590 0917 and AH C8617 0917 forms attached CERTIFICATE Nni nFR �IIf'llll�llltlllllllllfllfllflllfll�l"I'I�Illll�l�f�ftl�fllllll **************************SNGLP 936 Tray 1 : Piece 141 141 2 SP 0.650 City of Menifee 29844 Haun Rd Menifee CA 92586-6539 ACORD 25 (2016/03) CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORRII-ZED REPRESENTATIVE T Ia ©1988-2015 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD COMMERCIAL GENERAL LIABILITY AH CG 8617 09 17 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. NONCONTRACTOR'S ADDITIONAL INSUREDS ENDORSEMENT This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART A. WHO IS AN INSURED (Section II) is amended to include as an insured any person or organization (called additional insured) described in Paragraphs A.I. through A.8. below whom you are required to add as an additional insured on this policy under a written contract or written agreement; but the written contract or written agreement must be currently in effect or becoming effective during the term of this policy; executed prior to the "bodily injury," "property damage" or "personal injury and advertising injury," but this paragraph does not apply to any additional insured more specifically identified elsewhere in the policy. 1. ADDITIONAL INSURED — STATE OR POLITICAL SUBDIVISIONS — PERMITS A state or political subdivision subject to the following provisions: a. A state or political subdivision is an additional insured only with respect to the following hazards for which the state or political subdivision has issued a permit in connection, with premises you own, rent, or control to which this insurance applies: (1) The existence, maintenance, repair, construction, erection, or removal of advertising signs, awnings, canopies, cellar entrances, coal holes, drive- ways, manholes, marquees, hoistaway openings, sidewalk vaults, street banners, or decorations and similar exposures; or (2) The construction, erection, or removal of elevators; or (3) The ownership, maintenance, or use of any elevators covered by this insurance. b. A state or political subdivision is an additional insured only with respect to operations performed by you or on your behalf for which the state or political subdivision has issued a permit. This insurance does not apply to "bodily injury," property damage" or "personal and advertising injury" arising out of operations performed by or for you for the state or political subdivision. 2. ADDITIONAL INSURED — CONTROLLING INTEREST Any person or organizations with a controlling interest in you but only with respect to their liability arising out of: a. Their financial control of you; or b. Premises they own, maintain or control while you lease or occupy these premises. This insurance does not apply to structural alterations, new construction and demolition operations performed by or for such additional insured. 3. ADDITIONAL INSURED — MANAGERS OR LESSORS OF PREMISES A manager or lessor of premises but only with respect to liability arising out of the ownership, maintenance or use of that specific part of the premises leased to you and subject to the following additional exclusions: This insurance does not apply to: Includes copyrighted material of Insurance Services Office, Inc. AH CG 8617 09 17 with its permission. Page 1 of 3 (7) Products which, after distribution or sale by you, have been labeled or relabeled or used as a container, part or ingredient of any other thing or substance by or for the vendor, or (8) 'Bodily injury" or "property damage" arising out of the sole negligence of B. the vendor for its own acts or omissions or those of its employees or anyone else acting on Its behalf. However, this exclusion does not apply to: (a) The exceptions contained in Sub- paragraphs d. or f.; or (b) Such inspections, adjustments, tests or servicing as the vendor has agreed to make or normally undertakes to make in the usual course of business, in connection with the distribution or sale of the products. b. This insurance does not apply to any insured person or organization, from whom -you have acquired such products, or any ingredient, part or container, entering into, accompanying or containing such products. As respects the coverage provided under this endorsement, Paragraph. 4.b.(3.) SECTION IV — COMMERCIAL GENERAL LIABILITY CONDITIONS is added: 4.b.(3.) This insurance is excess over any other insurance covering the additional insured as an insured whether primary, excess, contingent or on any other basis, unless a written contract or written agreement specifically requires that this insurance be either primary or primary and noncontributing. Includes copyrighted material of Insurance Services Office, Inc. AH CG 8617 09 17 with its permission. Page 3 of 3 COMMERCIAL GENERAL LIABILITY AH CG 8623 09 17 PREMIER GENERAL LIABILITY COVERAGE EXTENSION This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE FORM A. REASONABLE FORCE (2) A watercraft you do not own that is: Paragraph 2.a. Expected or Intended Injury under COVERAGE A — BODILY INJURY AND PROPERTY DAMAGE LIABILITY of SECTION I — COVERAGES within the COMMERCIAL GENERAL LIABILITY COVERAGE FORM is replaced by: a. Expected or Intended Injury "Bodily injury" or "property damage" expected or intended from the standpoint of the in- sured. This exclusion does not apply to "bodi- ly injury" or "property damage" resulting from the use of reasonable force to protect any person or property. B. CONTRACTUAL LIABILITY Paragraph 2.b. Contractual Liability under COVERAGE A — BODILY INJURY AND PROPERTY DAMAGE LIABILITY of SECTION I — COVERAGES within the COMMERCIAL GENERAL LIABILITY COVERAGE FORM is replaced by: b. Contractual Liability "Bodily injury" or "property damage" for which the insured is obligated to pay damages by reason of the assumption of liability in a con- tract or agreement. This exclusion does not apply to liability for damages: (1) That the insured would have had in the absence of the contract or agreement; or (2) Assumed in a contract or agreement that is an "insured contract', provided the "bodily injury" or "property damage" oc- curs subsequent to the execution of the contract or agreement. C. NON OWNED WATERCRAFT (a) less than 75 feet long; and (b) Not being used to carry persons or prop- erty for a charge. D. ELECTRONIC DATA LIABILITY 1. Paragraph 2.p. Electronic Data under COV- ERAGE A — BODILY INJURY AND PROP- ERTY DAMAGE LIABILITY of SECTION I — COVERAGES within the COMMERCIAL GENERAL LIABILITY COVERAGE FORM is replaced by: p. Electronic Data Damages arising out of the loss of, loss of use of, damage to, corruption of, inability to access, or inability to manipulate "elec- tronic data" that does not result from physical injury to tangible property. However, this exclusion does not apply to liability for damages because of "bodily injury". 2. The following definition is added to SEC- TION V — DEFINITIONS: "Electronic data" means information, facts or programs stored as or on, created or used on, or transmitted to or from computer software, including systems and applications software, hard or floppy disks, CD-ROMs, tapes, drives, cells, data processing devices or any other media which are used with electronically con- trolled equipment. 3. For purposes of the coverage provided for "Electronic Data", Paragraph 17. in SEC- TION V — DEFINITIONS is replaced by: 17. "Property damage" means: Paragraph 2.g.(2) in the Aircraft, Auto Or Wa- a. Physical injury to tangible property, tercraft exclusion under COVERAGE A — including all resulting loss of use of that property. All such loss of use BODILY INJURY AND PROPERTY DAMAGE shall be deemed toccur at the time LIABILITY of SECTION I — COVERAGES within the COMMERCIAL GENERAL LIABILITY COV- ERAGE of the physical injury that caused it; or FORM is replaced by: Includes copyrighted material of Insurance Services Office, Inc., AH CG 8623 09 17 with its permission. Page 1 of 6 g. All interest on the full amount of any judgment that accrues after entry of the judgment and before we have paid, of- fered to pay, or deposited in court the part of the judgment that is within the applica- ble limit of insurance. These payments will not reduce the limits of insurance. 2. If we defend an insured against a "suit" and an indemnitee of the insured is also named as a party to the "suit", we will defend that indem- nitee if all of the following conditions are met: a. The "suit" against the indemnitee seeks damages for which the insured has as- sumed the liability of the indemnitee in a contract or agreement that is an "insured contract"; b. This insurance applies to such liability as- sumed by the insured; c. The obligation to defend, or the cost of the defense of, that indemnitee, has also been assumed by the insured in the same "insured contract"; d. The allegations in the "suit" and the in- formation we know about the "occur- rence" are such that no conflict appears to exist between the interests of the in- sured and the interests of the indemnitee; e. The indemnitee and the insured ask us to conduct and control the defense of that in- demnitee against such "suit" and agree that we can assign the same counsel to defend the insured and the indemnitee; and f. The indemnitee: (1) Agrees in writing to: (a) Cooperate with us in the investi- gation, settlement or defense of the "suit'; (b) Immediately send us copies of any demands, notices, sum- monses or legal papers received in connection with the "suit"; (c) Notify any other insurer whose coverage is available to the in- demnitee; and (d) Cooperate with us with respect to coordinating other applicable insurance available to the in- demnitee; and (2) Provides us with written authoriza- tion to: (a) Obtain records and other infor- mation related to the "suit'; and (b) Conduct and control the defense of the indemnitee in such "suit". Our obligation to defend an insured's indem- nitee and to pay for attorneys' fees and nec- essary litigation expenses as Supplementary Payments ends when we have used up the applicable limit of insurance in the payment of judgments or settlements or the conditions set forth above, or the terms of the agreement described in Paragraph f. above, are no long- er met. H. FELLOW EMPLOYEE COVERAGE — SUPERVISOR OR HIGHER Paragraph 2.a.(1) of SECTION II — WHO IS AN INSURED within the COMMERCIAL GENERAL LIABILITY COVERAGE FORM does not apply to the following: Your supervisory or management "employees" for "bodily injury" only. Damages owed to an injured co -"employee" or "volunteer worker" will be reduced by any amount paid or available to the injured co -"employee" or "volunteer worker" under any other valid and collectible insurance. I. NEWLY ACQUIRED ORGANIZATIONS Paragraph 3.a. of SECTION II — WHO IS AN INSURED within the COMMERCIAL GENERAL LIABILITY COVERAGE FORM is replaced by: a. Coverage under this provision is afforded only until the end of the current policy period. J. BROAD FORM NAMED INSURED The following is added to SECTION II — WHO IS AN INSURED within the COMMERCIAL GEN- ERAL LIABILITY COVERAGE FORM: Throughout this policy the words "you" and "your" refer to any corporation or other business organi- zation, other than a joint venture, in which the first Named Insured has or acquires during the policy period an ownership interest of more than 50% and is subject to the management control of the first Named Insured or its subsidiaries, and which is domiciled within the United States of America or its territories or possessions. K. AMENDMENT OF AGGREGATE LIMIT OF INSURANCE The General Aggregate Limit Of Insurance refer- enced in Paragraph 2. of SECTION III — LIMITS OF INSURANCE within the COMMERCIAL GENERAL LIABILITY COVERAGE FORM applies separately to: 1. Each of your "locations" owned by or rented to you; and AH CG 8623 09 17 Includes copyrighted material of Insurance Services Office, Inc., ...i+h i+c nc rmicci— Dann 4 _f it Expanded Coverage Territory 1. If a "suit" is brought in a part of the "coverage territory" that is outside the United States of America (including its territories and posses- sions), Puerto Rico or Canada, and we are prevented by law, or otherwise, from defend- ing the insured, the insured will initiate a de- fense of the "suit". We will reimburse the in- sured, under Supplementary Payments, for any reasonable and necessary expenses in- curred for the defense of a "suit" seeking damages to which this insurance applies, that we would have paid had we been able to ex- ercise our right and duty to defend. If the insured becomes legally obligated to pay sums because of damages to which this insurance applies in a part of the "coverage territory" that is outside the United States of America (including its territories and posses- sions), Puerto Rico or Canada, and we are prevented by law, or otherwise, from paying such sums on the insured's behalf, we will re- imburse the insured for such sums. 2. All payments or reimbursements we make for damages because of judgments or settle- ments will be made in U.S. currency at the prevailing exchange rate at the time the in- sured became legally obligated to pay such sums. All payments or reimbursements we make for expenses under Supplementary Payments will be made in U.S. currency at the prevailing exchange rate at the time the expenses were incurred. 3. Any disputes between you and us as to whether there is coverage under this policy must be filed in the courts of the United States of America (including its territories and possessions), Puerto Rico or Canada. 4. The insured must fully maintain any coverage required by law, regulation or other governmen- tal authority during the policy period, except for reduction of the aggregate limits due to pay- ments of claims, judgments or settlements. Failure to maintain such coverage required by law, regulation or other governmental authori- ty will not invalidate this insurance. However, this insurance will apply as if the required coverage by law, regulation or other govern- mental authority was in full effect. For purposes of this coverage only, the following is added to Paragraph 4.b.(1)(a) under Other Insurance of SECTION IV — COMMERCIAL GENERAL LIABILITY CONDITIONS within the COMMERCIAL GENERAL LIABILITY COVER- AGE FORM: If the insured's liability to pay damages is deter- mined in a "suit" brought outside the United States of America (including its territories and possessions), Puerto Rico or Canada; or That is coverage required by law, regulation or other governmental authority in a part of the "coverage territory" that is outside the United States of America (including its territories and possessions), Puerto Rico or Canada. For purposes of this coverage only, Paragraph 4. of SECTION V — DEFINITIONS within the COMMERCIAL GENERAL LIABILITY COVER- AGE FORM is replaced by: 4. "Coverage territory" means anywhere in the world with the exception of any country or ju- risdiction which is subject to trade or other economic sanction or embargo by the United States of America. Q. BODILY INJURY REDEFINITION Paragraph 3. of SECTION V — DEFINITIONS within the COMMERCIAL GENERAL LIABILITY COVERAGE FORM is replaced by: 3. "Bodily injury" means bodily injury, sickness or disease sustained by a person, including mental anguish, injury or illness or emotional distress and/or death resulting from any of these at any time. R. INSURED CONTRACT— LEASE OF PREMISES Paragraph 9.a. of SECTION V — DEFINITIONS within the COMMERCIAL GENERAL LIABILITY COVERAGE FORM is replaced by: a. A contract for lease of premises. However, that portion of the contract for a lease of premises that indemnifies any person or or- ganization for "property damage" by fire; smoke from a "hostile fire", explosion; light- ning; smoke resulting from such explosion or lightning; collision by "mobile equipment" or leakage from fire protection systems to prem- ises while rented to you or temporarily occu- pied by you with permission of the owner is not an "insured contract". S. LIBERALIZATION If we revise this endorsement to provide more coverage without additional premium charge, your policy will automatically provide the coverage as of the day the revision is effective in your state. AH CG 8623 09 17 Includes copyrighted material of Insurance Services Office, Inc., ,niiih if. nnrmiccinn Dann S ni R COMMERCIAL AUTO AH CA 85 90 09 17 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. CHANGES IN COMMERCIAL AUTO COVERAGE FORM This endorsement modifies insurance provided under the following: BUSINESS AUTO COVERAGE FORM A. BROADENED WHO IS AN INSURED Paragraph A.I. Who Is an Insured of SECTION II — LIABILITY COVERAGE is amended to include the following: d. Any "employee" of yours is an "insured" while using a covered "auto" you don't own, hire or borrow in your business or your personal affairs. e. Any "employee" of yours is an "insured" while using an "auto" hired or rented under a contract or agreement in that "employ- ee's" name, with your permission, while performing duties related to the conduct of your business. f. Each person or Organization to whom you are required by a written contract or agreement to provide additional insured status is an "insured" under Liability Cov- erage, but only to the extent that person or organization qualifies as an "insured" un- der the Who is an Insured Provision con- tained in Section II of the coverage form. The written contract or agreement must be in effect during the policy period shown in the Declarations and must have been exe- cuted prior to the "bodily injury" or "proper- ty damage." B. LIABILITY COVERAGE EXTENSIONS SUPPLE- MENTARY PAYMENTS Paragraphs A.2.a. (2) and A.2.a. (4) Coverage Extensions — Supplementary Payments of SECTION II — LIABILITY COVERAGE are deleted and replaced with the following: (2) Up to $5,000 for the cost of bail bonds (including bonds for related traffic law violations) required because of an "ac- cident" we cover. We do not have to furnish these bonds. (4) All reasonable expenses incurred by the "insured" at our request, including actual loss of earnings up to $500 a day because of time off from work. C. FELLOW EMPLOYEE COVERAGE Paragraph B.5. Fellow Employee Exclusion con- tained in SECTION II — LIABILITY COVERAGE does not apply if the "bodily injury" results from the use of a covered "auto" you own or hire that is not a bus, motorcycle or van used to transport em- ployees. This Fellow Employee Coverage is excess over any other collectible insurance. D. POLLUTION LIABILITY — BROADENED COV- ERAGE FOR COVERED AUTOS 1. Liability Coverage is changed as follows: a. Paragraph B.11.a. of the Pollution Exclu- sion in SECTION II — LIABILITY COV- ERAGE applies only to liability assumed under a contract or agreement. b. With respect to the coverage afforded by Paragraph 1.a. Above, Exclusion B.6. Care, Custody or Control of SECTION II LIABILITY does not apply. 2. Changes in Definitions For the purposes of this endorsement, Para- graph D. of SECTION V — DEFINITIONS is replaced by the following: D. "Covered pollution cost or expense" means any cost or expense arising out of: 1. Any request, demand, order or statuto- ry or regulatory requirement that any "insured" or others test for, monitor, clean up, remove, contain, treat, de- toxify or neutralize, or in any way re- spond to, or assess the effects of "pol- lutants"; or Includes copyrighted material of Insurance Services Office, Inc., AH CA 85 90 09 17 with its permission. Page 1 of 6 a. The number of days reasonably required to repair or replace the covered "auto". If "loss" is caused by theft, this number of days is added to the number of days it takes to locate the covered "auto" and re- turn it to you; or b. 30 days. 4. Our payment is limited to the lesser of the fol- lowing amounts: a. Necessary and actual expenses incurred; or b. $50 per day 5. This coverage does not apply while there are spare or reserve "autos" available to you for your operations. 6. If "loss" results from the total theft of a covered "auto" of the private passenger type, we will pay under this coverage only that amount of your rental reimbursement expenses which is not already provided for under the paragraph A.4. Coverage Extensions in SECTION III — PHYSICAL DAMAGE COVERAGE. No Deductible applies to this coverage. I. AIRBAG COVERAGE Exclusion B.3. in SECTION III — PHYSICAL DAMAGE COVERAGE is amended to add: This exclusion does not apply to the accidental discharge of an airbag. J. AUDIO, VISUAL AND DATA ELECTRONIC EQUIPMENT 1. Coverage a. We will pay with respect to a covered "au- to" described in the Schedule for "loss" to any electronic equipment that receives or transmits audio, visual or data signals and that is not designed solely for the repro- duction of sound. This coverage applies only if the equipment is permanently in- stalled in the covered "auto" at the time of the "loss" or the equipment is removable from a housing unit which is permanently installed in the covered "auto" at the time of the "loss", and such equipment is de- signed to be solely operated by use of the power from the "auto's" electrical system, in or upon the covered "auto". b. We will pay with respect to a covered "au- to" described in the Schedule for "loss" to any accessories used with the electronic equipment described in Paragraph 1.a. above. However, this does not include tapes, records or discs. 2. Exclusions The exclusions that apply to SECTION III — PHYSICAL DAMAGE, except for the exclusion relating to Audio, Visual and Data Electronic Equipment, also apply to coverage provided by this endorsement. In addition, the following ex- clusions apply: We will not pay, under this endorsement, for either any electronic equipment or accessories used with such electronic equipment that is: a. Necessary for the normal operation of the covered "auto" or the monitoring of the covered "auto's" operating system; or b. Both: (1). An integral part of the same unit hous- ing any sound reproducing equipment designed solely for the reproduction of sound if the sound reproducing equip- ment is permanently installed in the covered "auto"; and (2). Permanently installed in the opening of the dash or console normally used by the manufacturer for the installation of a radio. 3. Limit Of Insurance With respect to coverage under this endorse- ment, the Limit Of Insurance provision of SECTION III — PHYSICAL DAMAGE COV- ERAGE is replaced by the following: a. The most we will pay for all "loss" to audio, visual or data electronic equipment and any accessories used with this equipment as a result of any one "accident" is the lesser of: (1). The actual cash value of the damaged or stolen property as of the time of the "loss"; (2). The cost of repairing or replacing the damaged or stolen property with other property of like kind and quality; or (3). $1,500. b. An adjustment for depreciation and physi- cal condition will be made in determining actual cash value at the time of the "loss". c. If a repair or replacement results in better than like kind or quality, we will not pay for the amount of betterment. 4. Deductible No deductible applies to this coverage. The insurance provided by this extension is excess over any other collectible insurance. Includes copyrighted material of Insurance Services Office, Inc., AH CA 85 90 09 17 with its permission. Page 3 of 6 2. Actual Cash Value, or 3. The cost of repair. The deductible will be equal to the largest deducti- ble applicable to any owned "auto" for that cover- age. No deductible applies to "loss" caused by fire or lightning. This Hired Auto Physical Damage cov- erage is excess over any other collectible insur- ance. Subject to the above limit, deductible and excess provisions, we will provide coverage equal to the broadest coverage applicable to any covered "auto" you own. Q. DUTIES IN EVENT OF ACCIDENT, CLAIM, SUIT OR LOSS Any unintentional failure to disclose all exposures or hazards existing as of the effective date of the Business Auto Coverage Form or at any time dur- ing the policy period will not invalidate or adversely affect the coverage for such exposure or hazard. However, you must report the undisclosed expo- sure or hazard to us as soon as reasonably possi- ble after its discovery. T. EXTENDED EMPLOYEE HIRED AUTO PHYSICAL DAMAGE Paragraph 13.5.16. Other Insurance of SECTION IV — BUSINESS AUTO CONDITIONS is deleted and replaced by the following: Subparagraphs A.2.a. of SECTION IV — BUSI- NESS AUTO CONDITIONS is deleted and re- placed by: a. In the event of "accident", claim, "suit" or "loss", you, your insurance manager or any other person you designate must give us or our authorized representative prompt notice of such "accident" or "loss". Include: (1) How, when and where the "accident" or "loss" occurred; (2) The "insured's" name and address; and (3) To the extent possible, the names and ad- dresses of any injured persons and wit- nesses. U. Knowledge of an "accident" or "loss" by your agent, servant or "employee" shall not be consid- ered knowledge by you unless you, your insurance manager or any other person you designate has received notice of the "accident" or "loss" from your agent, servant, or "employee." R. WAIVER OF SUBROGATION SECTION IV — BUSINESS AUTO CONDI- TIONS— A. 5. Transfer of Rights of Recovery Against Others to Us is amended as follows: This condition does not apply to any person or or- ganization to which you waived this condition by written contract or agreement, but only to the ex- tent that subrogation is waived prior to the "acci- dent" or "loss" under a contract with that person or organization. S. UNINTENTIONAL FAILURE TO DISCLOSE HAZ- ARDS b. For Hired Auto Physical Damage Cover- age, the following are deemed to be cov- ered "autos" you own: 1. Any covered "auto" you lease, hire, rent or borrow; and 2. Any covered "auto" hired or rented by your "employee" under a contract in that individual "employee's" name, with your permission, while performing du- ties related to the conduct of your business. However, any "auto" that is leased, hired, rented or borrowed with a driver is not a covered "auto". POLICY PERIOD, COVERAGE TERRITORY Paragraph B.7. Policy Period, Coverage Territo- ry of SECTION IV — BUSINESS AUTO CONDI- TIONS is deleted and replaced by: 7. Policy Period, Coverage Territory Under this Coverage Form, we cover "acci- dents" and "losses" occurring: a. During the policy period shown in the Dec- larations; and b. Within the coverage territory. The coverage territory is: a. The United States of America; b. The territories and possessions of the United States of America; c. Puerto Rico; d. Canada; and e. Anywhere in the world if: Paragraph B.2. Concealment, Misrepresentation (1) A covered "auto" is leased, hired, Or Fraud in SECTION IV — BUSINESS AUTO rented or borrowed for a period of 30 CONDITIONS is amended by adding the following: days or less; and Includes copyrighted material of Insurance Services Office, Inc., AH CA 85 90 09 17 with its permission. Page 5 of 6