# DEFINITIONS

1. **Loss**

   *Means*

   all sums actually paid or sums which the insured is legally obligated to pay in the settlement or satisfaction of a claim to which this insurance applies after making proper deductions for all recoveries and salvage. Loss will include defense expense payments made by the underlying insurers if such expense payments are included within the limit of the Underlying Insurance.

2. **Underlying Insurance**

   *Means*

   the policy or policies as stated in Item 5 of the Declarations including their Extended Reporting Period(s) if provided.