# Policyholder Notice

## Defense Provisions (continued)

Defense and supplementary payment will continue to be in addition to the Limits of Insurance when all underlying insurance policies provide that they are in addition to limits of insurance.

The policy continues to cover as supplementary payments our proportional share of pre and post-judgment interest. However, coverage for other expenses has been limited to those expenses incurred by us at our discretion.

## Limits of Insurance

A new "Other Aggregate" replaces the former "Aggregate" and now clearly follows the application of aggregates in controlling underlying insurance (per job, per location, per policy, etc.) when all underlying insurance policies also follow the controlling policy.

The policy continues to provide that the Aggregate limit (now the "other Aggregate") does not apply when all underlying insurance policies apply no aggregate limit (automobile liability, etc.)

The policy now has a Products-Completed Operations Aggregate, not included within the Other Aggregate.

The policy contains clear provisions to "drop down" over underlying aggregate limits which may be reduced by payment of losses:

- The policy will recognize reduction of underlying limits of insurance by losses which occur during its policy period.
- The policy will recognize reduction of underlying limits of insurance by losses which are covered by all underlying insurance policies.

A new provision states that limits of insurance will apply separately to each consecutive annual period and to any remaining period of less than 12 months, when the policy is written for a period longer than 12 months. However, if after issuance the policy period is extended for a period of less than 12 months the additional period will be deemed part of the last preceding period.

The policy continues to not require reinstatement or replacement of eroded or exhausted underlying aggregate limits.

## Exclusions

The Pollution Liability exclusion was updated to be more consistent with underlying general and automobile liability forms.

The Asbestos Liability exclusion previously excluded by endorsement, is now incorporated into the policy.

Form 07-10-0438 (Ed. 6/96) Policy Notice
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