# Transamerica Insurance Group

## EXCESS LIABILITY DEFENSE AMENDATORY ENDORSEMENT

1) It is agreed that under Section III, Definitions, the definition of "ultimate net loss" is amended to read as follows:

"Ultimate Net Loss" means the amount of the principle sum, award or verdict actually paid or payable in cash in the settlement or satisfaction of claims for which the insured is liable, either by adjudication or compromise with the written consent of us, after making proper deduction for all recoveries and salvages.

2) It is agreed that under Section I B., Defense Provisions, Paragraph 2., is amended to read as follows:

B. DEFENSE PROVISIONS

2. If the aggregate limits of liability under said underlying insurance are reduced or exhausted by payment of judgments or settlements that would be payable under the terms of this policy, this insurance shall:

a. in the event of reduction, pay the excess of the reduced underlying limit;

b. in the event of exhaustion, continue in force as underlying insurance, but in such instances we shall defend only those suits brought within the coverage territory seeking damages payable under this policy and we may make such investigation and settlement of any claim or suit, which does not exceed the aggregate limit of this policy.

We shall not be obligated under this provision after the aggregate limit of this policy has been exhausted by payment of the ultimate net loss.

All other Terms and Conditions of this Policy remain unchanged.

This endorsement forms a part of Policy Number ________

Issued to _____________, and is effective

From ___________ To __________ (12:01 A.M. Standard Time).

(The attaching clause need be completed only if this endorsement has been attached after the policy has been issued.)

EL19125
(7/1/90)