(2) If none of the Underlying Insurance or Other Quota Share Insurance includes defense expense payments within their limits of insurance by the terms of those policies, then any such expense payment we make shall not reduce the Limits of Insurance of this policy.

D. The DEFINITIONS Section of the policy is amended to include the following:

3. OTHER QUOTA SHARE INSURANCE means the policy or policies shown in section G. of this endorsement.
4. TOTAL QUOTA SHARE INSURANCE means the sum of Our Limits of Insurance and the limits of insurance of all Other Quota Share Insurance.
5. QUOTA SHARE BASIS means the proportion Our Limits of Insurance bears to the Total Quota Share Insurance, whether the Other Quota Share Insurance is collectible or not.

E. CONDITION I. MAINTENANCE OF UNDERLYING INSURANCE., sections (A) and (C) are replaced by the following:

(A) You agree to maintain all Underlying Insurance and Other Quota Share Insurance in full force and effect during Our Policy Period, except for reduction of aggregate limits of insurance from payment of losses. If any Underlying Insurance or Other Quota Share Insurance is not maintained in full effect, or if there is any material change in the scope of coverage provided by them, the insurance afforded by this policy shall apply in the same manner as though these policies had been in full effect, so maintained and unchanged.

(C) You agree to promptly notify Us if any Underlying Insurance or Other Quota Share Insurance is canceled, terminated, or modified.

F. CONDITION 3. BANKRUPTCY OF UNDERLYING INSURER., is replaced by the following:

3. BANKRUPTCY OF UNDERLYING OR QUOTA SHARE INSURER. In the event of the bankruptcy or insolvency of the insurer or insurers of any Underlying Insurance or Other Quota Share Insurance, the insurance provided by this policy shall not replace such Underlying Insurance or Other Quota Share Insurance, but shall apply in the same manner as though such Underlying Insurance or Other Quota Share Insurance were available and collectible.

This Form must be attached to each Endorsement when issued after the policy is written.

One of the Fireman's Fund Insurance Companies as named in the policy

Thomas A. Swanson
Secretary
178210 1-86

The J. Blumenthal
President
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