# CHUBB Enhanced Commercial Umbrella Liability Policy

then such "defense costs", other than post-judgment interest, will reduce the applicable Limits of Insurance of this policy.

H. The Limits of Insurance and applicable "retained limit" of this policy apply separately to each consecutive annual period and to any remaining period of less than twelve (12) months, starting with the beginning of the "policy period" shown in the Declarations, unless the "policy period" is extended after issuance for an additional period of less than twelve (12) months. In that case, the additional period will be deemed part of the last preceding period for purposes of determining the Limits of Insurance and "retained limit".

I. If the applicable "retained limit" has been:
1. Reduced by the payment of "loss", then this policy will be excess of the reduced "retained limit".
2. Exhausted by the payment of "loss", then this policy will continue in force as "underlying insurance".

This policy recognizes reduction or exhaustion of "underlying insurance", any applicable self-insured retention, and any applicable "scheduled retained limit" only by payment of "loss" to which this policy applies.

J. Where damages for "bodily injury" or "property damage" included within the "liquor liability hazard" are not covered by "underlying insurance", except due to the exhaustion of such "underlying insurance" by the payment of "loss" to which this policy applies, the amount we will pay for such damages shall be excess of the "enhanced coverage self-insured retention" or "scheduled retained limit" as applicable, and any applicable "other insurance".

K. Subject to L. below, where amounts payable pursuant to an exception to an exclusion of this policy are expressly subject to the "enhanced coverage self-insured retention", the amount we will pay for damages subject to such exception shall be excess of the "enhanced coverage self-insured retention" and any applicable "other insurance".

L. If there is "other insurance" purchased by the "Named Insured" applicable to a "loss" subject to the "enhanced coverage self-insured retention", amounts received through such "other insurance" purchased by the "Named Insured" for the payment of such "loss" covered by this policy may be applied to reduce or exhaust the "enhanced coverage self-insured retention".

M. If there is "underlying insurance", or "other insurance" purchased by the "Named Insured", applicable to a "loss" subject to a "scheduled retained limit", amounts received through such "underlying insurance", or such "other insurance" purchased by the "Named Insured", for the payment of such "loss" covered by this policy may be applied to reduce or exhaust the "scheduled retained limit".

N. If there is applicable "underlying insurance" with a policy period that is non-concurrent with the "policy period" of this policy, the "retained limit" with respect to any coverage provided by this policy excess of such "underlying insurance" will only be reduced or exhausted by payments for:
a. "Bodily injury" or "property damage" that occurs during the "policy period" of this policy;
b. "Personal and advertising injury" for "occurrences" that are committed during the "policy period" of this policy.

However, if any applicable "underlying insurance" is written on a claims-made basis, the "retained limit" with respect to any coverage provided by this policy excess of such "underlying insurance" will only be reduced or exhausted by claims for that insurance that are made during the "policy period", or any Extended Reporting Period, applicable to this policy.

O. "Defense costs" shall not reduce or exhaust the "enhanced coverage self-insured retention" or the "umbrella coverage self-insured retention". "Defense costs" shall not reduce or exhaust a "scheduled retained limit" unless specifically noted in the Schedule of Retained Limits or endorsement setting forth such "scheduled retained limit".

XSE- 50762(05/18)
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