were traceable to the same contaminated truckload), the Insured (so long as it continued coverage) could later give an Integrated Occurrence notice. If such Integrated Occurrence notice were given in a later Annual Period, then the two earlier deaths (as well as any other deaths and injuries attributable to the same contamination) would then be pulled from the Annual Period(s) in which the individual notices previously were given into the later Annual Period when the Integrated Occurrence notice is given.

### B. Effect of Notice

Under the X.L. Excess Liability Policy, notice to X.L. of an Occurrence is, in effect, the "trigger" of coverage under the Policy and, therefore, is a very significant event. Accordingly, it is important for both the Insured and X.L. to be clear as to whether and when notice is given of an Occurrence. This is true under both XS-003 and XS-004, and, as noted, under XS-004 the trigger for Integrated Occurrence coverage is an "Integrated Occurrence" notice (notwithstanding that prior notice may have been given of Personal Injury, Property Damage and/or Advertising Liability included therein other than as an Integrated Occurrence). Any Occurrence previously noticed under XS-003 as a "batch occurrence", and any Occurrence previously notified under XS-003 which did not arise out of unit products, will be subject to coverage as in effect at the time of such notice and may not be notified under XS-004 as an Integrated Occurrence.

### C. When To Give Notice

Notice is required to be given only when the Named Insured (i.e., an employee of the risk management insurance or law department or certain specified officers of the Named Insured) becomes aware of an Occurrence likely to involve X.L.'s policy. It is thus not necessary to give notice of every Occurrence or claim to protect the Insured's rights under the X.L. Policy where the Insured in good faith determines its exposure to be less than its Per Occurrence Retention Amount, although the Insured may at its option give precautionary notice of any such Occurrence. If notice is not given of such an Occurrence and at a later point it is learned that there is an appreciable risk of impacting X.L.'s coverage, only then is notice required under the Policy. Prompt notice at such point will be timely, and the Insured will not be prejudiced by failure to give an earlier precautionary notice (provided, of course, that Coverage A or Coverage B, if applicable, continues in effect for the same layers).

In determining exposure, X.L. requests that Insureds give more weight to the potential damages than to the risk of liability being imposed. That is, X.L. would appreciate notice of Occurrence where, even though the risk of liability is low, the potential damages are high (e.g., a seemingly frivolous class action for Personal Injuries). Of course, the mere fact that a plaintiff's attorney adds several zeros to the prayer for relief should not be controlling in evaluating exposure. Where the risk of liability is great but the exposure small, e.g., ordinary automobile accidents (other than "Integrated Occurrences"), notice need not be given unless and until there develops a specific indication that the exposure is large (e.g., one of the occupants of the car had earnings of $20,000,000 per year and is forever incapable of working again due to serious injuries in the accident).

It serves no one's interest to have Insureds submit notices of Occurrences which have no

* If coverage is not continued under the Policy, or if layers of coverage are dropped, notice must be given prior to the Policy's expiration or the reduction of coverage of any Occurrence (or Integrated Occurrence) for which coverage may be sought, irrespective of the likelihood of involvement of X.L.'s Policy, to protect the Insured's rights with respect to such Occurrence (or Integrated Occurrence) under the Policy or the discontinued layers.