# "occurrence" means an accident, nothing coming to result in bodily injury or property damage neither expected nor intended from the standpoint of the insured.

## "policy territory" means:

1. The United States of America, its territories or possessions, or Canada.
2. International waters or air space, provided the bodily injury or property damage does not occur as a consequence of travel or transportation by or from any country, state or nation.
3. Anywhere in the world with respect to damages because of bodily injury or property damage arising out of a product which was sold for use or consumption within the policy territory described in paragraph 1 above, provided the original cause for such damage is not the product hazard.

## "products hazard" includes bodily injury and property damage arising out of the named insured's products or reliance upon a representation or warranty made at any time with respect thereto, but only if the bodily injury or property damage occurs away from premises owned by or rented to the named insured and after completion of operations.

### SUPPLEMENTARY PAYMENTS

The company will pay, in addition to the applicable limit of liability:
- All expenses incurred by the company, all costs taxed against the insured in any suit demanded by the company and all interest on the entire amount of any judgment against the insured, accrued from the date of the judgment, the company has paid or tendered or deposited in court that part of the judgment which does not exceed the limit of the company's liability thereon.
- Premiums on appeal bonds required in any such suit, premiums on bonds to release attachment in any such suit for an amount not in excess of the applicable limit of liability of this policy and the cost of bail bonds secured.

### CONDITIONS

1. **Premium**: All premiums for this policy shall be computed in accordance with the company's rules, rates, rating plans, premiums and minimum premiums applicable to the insurance afforded herein.
   - Premium designated in this policy as "advance premium" is a deposit premium only which becomes credited against the amount of the earned premium due at the end of the policy period. At the close of each period (or part thereof) terminating with the end of the policy period) designated in the declarations as the audit period, the earned premium shall be computed for such period, and, upon notice thereof given to the named insured, shall become due and payable. If the advance premium for the policy period is less than the premium previously paid, the company shall return to the named insured the unearned portion paid by the named insured.
   - The named insured shall maintain records of such information as is necessary for premium computation, and shall send copies of such records to the company at the end of the policy period and at such times during the policy period as the company may direct.

2. **Inspection and Audit**: The company shall be permitted but not obligated to inspect the named insured's property and operations at any time. Neither the company's right to make inspections nor the making thereof nor any reports thereon shall constitute an undertaking, on behalf of or for the benefit of the named insured or others, to determine or warrant that such property or operations are safe or in compliance with any code.

3. **Financial Responsibility Laws**: When this policy is certified as proof of financial responsibility in the future under the provisions of any motor vehicle financial responsibility law, such insurance as is afforded by this policy for bodily injury liability or for property damage liability shall comply with the provisions of such law and shall be subject to the limits of liability prescribed therefor.

4. **Insured's Duties in the Event of Occurrence, Claim or Suit**:
   - In the event of an occurrence, written notice containing particulars sufficient to identify the insured and also reasonably obtainable information with respect to the time, place and circumstances thereof, the names and addresses of the injured and of available witnesses, shall be given by or for the insured to the company or any of its authorized agents as soon as practicable.

5. **Action Against Company**: No action shall lie against the company unless, as a condition precedent thereto, there shall have been full compliance with all of the terms of this policy, not until the company has been notified by the insured's ability to pay claim has been determined either by judgment against the insured, by a trial or written agreement of the insured, the claimant and the company.

6. **Other Insurance**: The insurance afforded by this policy is primary insurance except when stated to apply in excess of or contingent upon the absence of other insurance. When this insurance is primary and the insured has other insurance which is stated to be applicable to the loss on an excess or contingent basis, the amount of the company's liability under this policy shall not be reduced by the existence of such other insurance.

7. **Subrogation**: In the event of any payment under this policy, the company shall be subrogated to all the insured's rights of recovery thereof against any person or organization and the insured shall execute and deliver instruments and papers and do whatever else is necessary to secure such rights. The insured shall do nothing after loss to prejudice such rights.

MM 009673