# COMMERCIAL EXCESS LIABILITY
CX 01 15 01 11

## THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
### NEW YORK CHANGES – TRANSFER OF DUTIES WHEN A LIMIT OF INSURANCE IS USED UP

This endorsement modifies insurance provided under the following:

**COMMERCIAL EXCESS LIABILITY COVERAGE PART**

The following condition is added to Section III – Conditions:
**Transfer Of Duties When A Limit Of Insurance Is Used Up**

1. If we conclude that, based on "events", claims or suits which have been reported to us and to which this insurance may apply, the:
   - a. Aggregate Limit; or
   - b. Each Occurrence Limit;
   is likely to be used up in the payment of judgments or settlements, we will notify the first Named Insured, in writing, to that effect.

2. When a limit of insurance described in Paragraph a. above has actually been used up in the payment of judgments or settlements:
   - a. We will notify the first Named Insured, in writing, as soon as practicable, that:
     1. Such a limit has actually been used up; and
     2. Our duty to defend suits seeking damages subject to that limit has also ended.
   - b. If we have a duty to defend we will initiate, and cooperate in, the transfer of control, to any appropriate insured, of all claims and suits seeking damages which are subject to that limit and which are reported to us before that limit is used up. That insured must cooperate in the transfer of control of said claims and suits.
   We agree to take such steps, as we deem appropriate, to avoid a default in, or continue the defense of, such suits until such transfer is completed, provided the appropriate insured is cooperating in completing such transfer.

3. The first Named Insured will reimburse us for expenses we incur in taking those steps we deem appropriate in accordance with Paragraph 2.b. above.
The duty of the first Named Insured to reimburse us will begin on:
   - a. The date on which the applicable limit of insurance is used up, if we sent notice in accordance with Paragraph 1. above; or
   - b. The date on which we sent notice in accordance with Paragraph 2.a. above, if we did not send notice in accordance with Paragraph 1. above.

4. The exhaustion of any limit of insurance by the payment of judgments or settlements, and the resulting end of our duty to defend, will not be affected by our failure to comply with any of the provisions of this Condition.

We will take no action whatsoever with respect to any claim or suit seeking damages that would have been subject to that limit, had it not been used up, if the claim or suit is reported to us after that limit of insurance has been used up.

c. The first Named Insured, and any other insured involved in a suit seeking damages subject to that limit, must arrange for the defense of such suit within such time period as agreed between the appropriate insured and us. Absent any such agreement, arrangements for the defense of such suit must be made as soon as practicable.