# THE CHUBB COMMERCIAL EXCESS

## Policy Notice

**Policy Period:** MAY 21, 1997 to MAY 21, 1998  
**Effective Date:** May 21, 1997  
**Policy Number:** (98) 7908-98-97 CAS  
**Insured:** INTERNATIONAL BUSINESS MACHINES CORP., ETAL (AS PER CONTROLLING U/L INSURANCE)  
**Name of Company:** VIGILANT INSURANCE COMPANY  
**Date Issued:** June 12, 1997  

## Policyholder Notice

### Exclusions (continued)
A new Controlling Underlying Insurance exclusion clarifies that the policy automatically assumes the exclusions contained in the controlling underlying insurance.

The Nuclear Energy exclusion was updated to be more consistent with underlying policy forms.

### Definitions
- **Controlling Underlying Insurance:** is a newly defined term which identifies the scheduled controlling policy.
- **Underlying Limits of Insurance:** is a newly defined term which identifies the amounts to which the coverage of the policy is excess.

### Conditions
- The new Audit of Books and Records condition permits us to audit the insured's books and records during the term of the policy and up to 180 days after termination or expiration.
- For policies that have been in effect 60 days or less, the Cancellation condition was broadened to provide thirty days notice of cancellation (except for non-payment of premium and other reasons which remain unchanged).
- The policy will also contain the following new conditions intended to clarify coverage intent:
  - **Bankruptcy or Insolvency:** which provides that the insured's bankruptcy will not relieve us of our obligations under the policy.