# LIMITS OF LIABILITY - UNDERLYING LIMITS

It is expressly agreed that liability shall attach to the Company only if the Limit of Liability as stated in Item 5 and 6 of the Declarations, is less than the amount of their respective underlying net loss liability as follows:

- $1,000,000 as stated in Item 5 of the Declarations.
- $1,000,000 as stated in Item 6 of the Declarations.

And the Company shall then be liable for only the excess thereof, if any.

**EXCLUSION**

It is agreed that this Policy does not apply to any property damage arising out of or resulting from the release into the atmosphere of any watercourse or body of water but this exclusion does not apply to a discharge, overflow, release or escape of such water.

## CONDITIONS

### 1. PRIOR INSURANCE AND NON-CUMULATION OF LIABILITY

It is agreed that if any loss covered hereunder is also covered in whole or in part under another policy issued by the Insured prior to the inception date hereof the limit of liability hereon as stated in Items 5 and 6 of the Declarations shall be reduced to an amount equal to the amount insured in account of such loss under such prior insurance.

### 2. MAINTENANCE OF UNDERLYING UMBRELLA INSURANCE

This policy is subject to the same terms, definitions, exclusions and conditions (except as regards the premium, the amount and extent of liability, and except as otherwise provided herein) as are contained in or as may be added to the Underlying Umbrella Policies, stated in Item 7 of the Declarations prior to the happening of an occurrence for which claim is made hereunder.

It is a condition of this Policy that the Underlying Umbrella Policy(ies) shall be maintained in full effect during the current period without reduction of coverage or limits except for any reduction of the aggregate limits contained therein solely by payment of claims hereunder or accidents and/or occurrences occurring during the period of this Policy. Failure of the Named Insured to comply with the foregoing shall not invalidate this policy but in the event of such failure, the Company shall only be liable to the same extent as it would have been had the Named Insured complied with the same condition.

### 3. CANCELLATION

The Policy may be cancelled by the Named Insured by surrender thereof to the Company or its representatives written notice stating when thereafter the cancellation shall be effective. This Policy may be cancelled by the Company or its representatives by sending by registered mail notice to the Named Insured stating when, not less than thirty (30) days thereafter, cancellation shall be effective. The making of notice as aforesaid by the Company or its representatives to the Named Insured at the address shown in this Policy shall be sufficient proof of notice, and the insurance under this Policy shall end on the effective date and hour of cancellation stated in the notice.

It is agreed that irrespective of any other items or conditions contained in this Policy or endorsements attached thereto, this Policy may be cancelled by the Company or its representatives for non-payment of any unpaid portion of the premium by delivering to the Named Insured or by sending to the Named Insured by registered mail at the Named Insured's address as shown herein not less than ten (10) days written notice stating when the cancellation shall be effective.

If this Policy shall be cancelled by the Named Insured the Company shall retain the customary, non-refundable proportion of the premium for the period this Policy has been in force. If this Policy shall be cancelled by the Company, the Company shall retain the pro-rata proportion of the premium for the period this Policy has been in force. Notice of cancellation by the Company shall be effective even though the Company makes no demand or tender return premium with such notice.

### 4. NOTICE OF OCCURRENCE

Whenever the Insured has information from which the Insured may reasonably conclude that an occurrence covered hereunder, however minor or damages which, in the event that the Insured should be held liable, is likely to involve this Policy, notice shall be sent as stated in Item 7 of the Declarations as soon as practicable, provided, however, that failure to give notice of any occurrence which at the time of its happening did not appear to involve the Policy but which, at a later date, would appear to give rise to claims hereunder shall not prejudice such claims.

### 5. OTHER INSURANCE

If other valid and collectible insurance with any other insurer is available to the Insured covering a loss also covered by this Policy, other than insurance that is specifically stated to be excess of this policy, the insurance afforded by this Policy shall be in excess of and shall not contribute with such other insurance.

### 6. CONFLICTING STATUTES

The terms of this insurance which are in conflict with the statutes of the state wherein this insurance is issued are hereby amended to conform to such statutes.