# Excess Liability Policy

**Policy Provisions - Part 1**

**Form 6146**

## THE HARTFORD

### JOHNSON & HIGGINS
**INSURANCE BROKERS**
**EMPLOYEE BENEFIT PLAN CONSULTANTS**
**95 WALL ST., NEW YORK 10005 • 701-7500**

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**THE COMPANY DESIGNATED ON THE DECLARATIONS PAGE AS THE INSURER (A STOCK INSURANCE COMPANY, HEREIN CALLED THE COMPANY)**

In consideration of the payment of the premium, agrees with the first named insured as follows:

## I INSURING AGREEMENT

The company will indemnify the insured (or ultimate net loss in excess of underlying insurance stated in Item 5 of the declarations, but not in excess of the company's limits of liability stated in Item 4 of the declarations).

Except as otherwise provided by this policy, the insurance afforded herein shall follow all the terms, conditions, definitions and exclusions of the controlling underlying insurance policy designated in Item 3 of the declarations.

## II INVESTIGATION, DEFENSE, SETTLEMENT

The company shall not be obligated to assume charge of the investigation, defense or settlement of any claim or suit against the Insured, but the company shall have the right to investigate such claim or suit given the opportunity to assess it with the Insured or its underlying insurers, or both, in the investigation, defense or settlement of any claim or suit when, in the opinion of the company, the interests of the company would be prejudiced if it were to involve itself in the matter. The company shall cooperate with the Insured, its insurers and the company shall cooperate in such matters so as to effect a final determination of the claim. The Insured shall not make or agree to any settlement for any amount in excess of underlying insurance without the approval of the company.

Subject to the above provision, costs incurred by the Insured shall be borne as follows:

(a) all costs incurred by the Insured without the written consent of the company shall be borne by the Insured;

(b) if a claim or suit is settled for not more than the limits of underlying insurance, no costs shall be payable by the company.

(c) if the sum for which a claim or suit is settled exceeds the limits of underlying insurance, then the company, if it approves such settlement or consents to the continuation of the proceedings, shall contribute to the costs incurred by the Insured in the proportion that the amounts utilized in settling the loss as determined to be payable by the company bears to the total amount paid on such claim or suit by all interests;

(d) if the Insured elects not to appeal a judgment in excess of the limits of underlying insurance, the company may elect to conduct such appeal at its cost and expense, and shall be liable for the taxable costs and disbursements and interest incidental thereto, but in no event shall the total liability of the company exceed the limits of liability stated in this policy, plus the cost and expense of such appeal;

(e) if a judgment is rendered in excess of the limits of underlying insurance and the company is willing to contribute thereto but the underlying insurers elect to appeal such judgment, the duty of obtaining an appeal bond in respect to liability in excess of the limits of underlying insurance shall be that of the Insured and its underlying insurers.

## III PERSONS INSURED

Each of the following is an insured under this policy to the extent set forth below:

(a) any named insured, and

(b) any person or organization which is an insured under the terms of the controlling underlying insurance policy, subject to all the limitations upon coverage under such controlling underlying insurance policy other than the limits thereof.

## IV LIMITS OF LIABILITY

Regardless of the number of (1) insureds under this policy, (2) persons or organizations who sustain injury or damage or (3) claims made or suits brought, the company's liability is limited as follows:

(a) The limits of the company's liability under this policy apply only after the underlying insurers have paid or have been held legally obligated to pay the full amount of their respective limits of liability which makes up the total stated in Item 5 of the declarations; provided that:

(i) unless aggregate limits are specifically stated in both Items 4 and 5 of the declarations, the insurance afforded by this policy applies to each occurrence only for limits of liability in excess of the amounts afforded for each occurrence in the underlying insurance, except that the company may reduce the amount of underlying insurance in the event of the exhaustion or reduction of aggregate limits of liability, if any, in the underlying insurance; or

(ii) if aggregate limits of liability are specifically stated in both Items 4 and 5 of the declarations, the insurance afforded by this policy applies in excess of the reduced underlying insurance to the extent such reduction of the underlying insurance is solely the result of the payment of claims because of occurrences taking place during the period of this policy.

(b) If the limits of liability stated in Item 4 of the declarations are on a "Quota Share Basis", the limits of the company's liability shall be the amount of all ultimate net loss to which this policy applies which is in excess of underlying insurance, up to the limits so stated.

(c) If the limits of liability stated in Item 4 of the declarations are on a "Full Limits Basis", the limits of the company's liability shall be the amount of all ultimate net loss to which this policy applies, up to the limits so stated.

(d) Subject to provisions (a), (b) and (c) above, the total liability of the company for all ultimate net loss as the result of any one occurrence, shall not exceed the limit of liability stated in Item 4 of the declarations as applicable to "each occurrence".

(e) Subject to provisions (a), (b) and (c) above, the total liability of the company for all ultimate net loss because of all occurrences shall not exceed the limit of liability stated in Item 4 of the declarations as applicable to "each occurrence".

Form 6146
Page 1

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