**JOHNSON & HIGGINS**

July 28, 1980

Page 2

Umbrella application which outlines the correct wording for the named insured. Two additional problems exist and they have to do with the Aircraft Products and your Professional Liability Exclusion endorsements. As written, your policy excludes all aircraft products whether or not they have been sold or relinquished to others. As such, an OLT exposure could be excluded from coverage. For example, IBM may have in their warehouse some data processing machinery which is to be used in connection with the aviation field. A customer could enter the warehouse and upon examining such equipment, a machine could fall off a shelf hitting the individual and causing serious injury. This is obviously an OLT type claim and should be covered but because of your wording protection could be denied IBM. For this reason, I am attaching a copy of the Aircraft Products Hazards Exclusion and Grounding Endorsement used by the lead Umbrella which I ask that you incorporate under your contract. This would clarify the intent of the Products Hazard Exclusion and would compliment the specific Aircraft Products Program currently in effect for IBM.

A similar situation exists with your Data Processors Exclusion Endorsement. Again, I believe it would be your intent to cover a situation where a salesman is working on a customer's machine and inadvertently injures someone. I am also attaching copy of the Data Processing Exclusion wording as used by the Centennial Insurance Company which applies "in the rendering of or failure to render professional services as respects data processing".

Dennis, I appreciate you taking the time to review this matter and will be pleased to discuss any of the above points with you should you have any questions. Should you be in agreement, I look forward to receiving the corrected endorsements as I will hold the policies on my desk pending satisfactory resolution of all outstanding items.

Very truly yours,

Richard T. Michel
Vice President

ml