# EXCESS LIABILITY POLICY

**THE HOME INSURANCE COMPANIES**

**(Hereinafter called the Company)**

Agrees with the Insured named in the schedule made a part hereof, in consideration of the payment of the premium and subject to all the terms of this Policy, as follows:

As respects accidents or occurrences, whichever is applicable, taking place during the period of the Policy, the Company agrees to afford the Insured such additional insurance as the issuers of the Underlying Coverage specified in the schedule would afford the Insured by increasing the underlying limit from the limits set forth under Item 2 of the Declarations to the limits set forth under Items 2 and 3 of the Declarations combined provided that it is expressly agreed that liability shall attach to the Company.

## DEFINITIONS

1. **Ultimate Net Loss**: The words "ultimate net loss" shall be understood to mean the amount payable in settlement of the liability of the Insured after making deductions for all recoveries and for any valid and collectible insurances, excepting however the policy(ies) of the Primary Insurers, and shall exclude all expenses and costs.
2. **Costs**: The word "costs" shall be understood to mean interest accruing after entry of judgment, investigation, adjustment, and legal proceedings, including, however, all office expenses of the Insured, all expenses of salaried employees of the Insured and general retainer fees for counsel normally paid by the Insured.

## CONDITIONS

### MAINTENANCE OF UNDERLYING INSURANCE
It is a condition of this Policy that the Underlying Coverage be maintained in full effect during the period of this Policy except for the reduction of the aggregate limits contained therein solely by payment of claims arising out of accidents or occurrences, whichever is applicable, which take place during the period of this Policy. If the Underlying Coverage is terminated during the period of the Policy the effective date of termination of the said Underlying Coverage shall be the end of the period of this Policy.

This Policy is subject to the same warranties, terms and conditions (excluding otherwise) as are contained in or as may be added to the Underlying Coverage prior to the happening of an accident or occurrence, whichever is applicable, for which claim is made hereunder.

### PREMIUM
The Insured shall pay premium to the Company as specified in the schedule.

If the Insured terminates this Policy, earned premium shall be computed in accordance with the customary short rate table and procedure. If the Company terminates this Policy, earned premium shall be computed pro rata.

## MODIFICATION OF CLAIMS
The Insured upon knowledge of any accident or occurrence, whichever is applicable, liable to give rise to a claim hereunder shall give immediate written notice thereof to the Company.

### ASSISTANCE AND CO-OPERATION
The Company shall not be called upon to assume charge of the settlement or defense of any claim, suit, right or proceeding instituted against the Insured but the Company shall have the right and shall be given the opportunity to associate with the Insured or the Insured's counsel, if any, in the defense and control of any claim, suit or proceeding relating to an occurrence covered by the claim or suit involves or appears reasonably likely to involve the Company, in which event the Insured and the Company shall cooperate in all things in the defense of such claim, suit or proceeding.

### TERMINATION
The Insured may terminate this Policy at any time by giving to the Company 30 days' previous notice. The Company may terminate this Policy at any time by giving to the Insured 30 days' previous notice. Any such notice shall be sent by registered mail and shall state the date on which termination shall become effective. The effective date of termination shall be the end of the period of this Policy.

In Witness Whereof, the Company has caused this Policy to be executed and attested; but this Policy shall not be valid unless countersigned on this Declaration page by a duly authorized representative of the Company.