# COMMERCIAL GENERAL LIABILITY

**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 GENERAL LIABILITY COVERAGE PART**

The following Condition is added to COMMERCIAL GENERAL LIABILITY CONDITIONS (Section IV):

### Transfer of Duties When a Limit of Insurance Is Used Up.

a. If we conclude that, based on "occurrences," offenses, claims or "suits" which have been reported to us and to which this insurance may apply, the:
(1) General Aggregate Limit (other than the Products/Completed Operations Aggregate Limit);
(2) Products/Completed Operations Aggregate Limit;
(3) Personal and Advertising Injury Limit;
(4) Each Occurrence Limit; or
(5) Fire Damage 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.
b. When a limit of insurance described in paragraph a. above has actually been used up in the payment of judgments or settlements:
(1) We will notify the first Named Insured in writing, as soon as practicable, that:
(a) Such a limit has actually been used up; and
(b) Our duty to defend "suits" seeking damages subject to that limit has also ended.
(2) 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.
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.
(3) 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 to between the appropriate insured and us. Absent any such agreement, arrangements for the defense of such "suit" must be made as soon as practicable.
c. The first Named Insured will reimburse us for expenses we incur in taking those steps we deem appropriate in accordance with paragraph b.(2) above.
The duty of the first Named Insured to reimburse us will begin on:
(1) The date on which the applicable limit of insurance is used up, if we sent notice in accordance with paragraph a. above; or
(2) The date on which we sent notice in accordance with paragraph b.(1) above, if we did not send notice in accordance with paragraph a. above.
d. The exhaustion of any limit of insurance by the payments 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.

**CG 26 21 10 91**
Copyright, Insurance Services Office, Inc., 1991