# CONDITIONS

1. It is agreed that this policy, except as herein stated, is not a contract of conditions, agreements and undertakings, but shall follow the Primary Insurance in all respects, including changes to the policy, except that the Insured shall furnish the Company with respect to such changes. If it is further agreed that any alteration be made in the present form of the policies of the Primary Insurers during the period of this Policy, then the premium herein set forth upon the Maximum Form will be adjusted accordingly.

2. Notice of any accident which appears likely to increase this policy shall be given to the Company, which of its own option may, but is not required by, participate in the investigation or settlement of any claim arising out of the event exposure and/or results of an accident, whether or not covered by the policy. In the event of such participation, the Company, in addition to its limits of liability, as expressed in Section 4 below, of the Declarations, shall be liable for no greater amount than its exposure and/or costs than the amount payable by the Company under this Policy prior to the time of payment.

3. With respect to each coverage in Item A & Section B of the Declarations, each accident is subject to the limit specified applicable to each person. There is no limit to the number of accidents for which claims may be brought hereunder provided such accidents occur during the period of the Policy, except as provided by aggregate limits, which, with respect to Item A, Section 1, when inverted, thereupon apply to all accidents happening during each twelve month's term of the Policy.

4. All salvage, recoveries or payments recovered or received subsequent to a loss settlement under the Policy shall be applied as if recovered directly from such settlement and all necessary adjustments shall then be made between the Insured and the Company provided always that nothing in this Policy shall be construed to mean that losses under this Policy are not settleable until the Insured's ultimate net loss has been finally ascertained.

5. This Policy may be cancelled at any time at the written notice of the Insured or may be cancelled by or on behalf of the Company provided ten (10) days written notice is given to the Insured at the address shown in the Declarations. The mailing of notice as aforesaid shall be sufficient proof of notice. The effective date of cancellation stated in the notice shall become the end of the policy period. In the event of the cancellation or termination of the Primary Insurance or of a renewal thereof, this policy, to the extent of such cancellation or termination, shall cease to apply at the same time without notice to the insured. If the named Insured cancels, earned premium or minimum premium, whichever is greater, shall be computed in accordance with the customary short rate table and procedure. If the Company cancels, earned premium or minimum premium, whichever is greater, shall be computed pro rata.

IN WITNESS WHEREOF, this Company has executed and attested these presents; but this policy shall not be valid unless countersigned by the duly authorized representative of this Company.