# Exclusions (continued)

b. claim or suit by or on behalf of any governmental authority or others for damages because of testing for, monitoring, cleaning up, removing, containing, treating, detoxifying, or neutralizing, or in any way responding to, or assessing the effects of pollutants.

As used in this exclusion:

1. hostile fire means one which becomes uncontrollable or breaks out from where it was intended to be; and

2. pollutants means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned, reclaimed or disposed of.

# Definitions

In this policy words and phrases appearing in bold-face type have the defined meanings shown below.

Controlling underlying insurance means the policy or policies of insurance as stated in Item 6 a. of the Declarations.

Loss means those sums actually paid in the settlement or satisfaction of a claim which the insured is legally obligated to pay as damages because of injury or offense, after making proper deductions for all recoveries and salvage. Loss includes defense and supplementary expense payments if such payments are included within the limits of insurance of any respective underlying insurance, by the terms of that policy.

Underlying insurance means the policy or policies as stated in Item 6 of the Declarations including controlling underlying insurance.

Underlying limits of insurance means the total sum of amounts stated in Item 5 of the Declarations consisting of:

1. applicable and collectible underlying insurance; and

2. the amount for which the insured is legally obligated to pay in the settlement or satisfaction of a claim for which:
   a. no underlying insurance applies; or
   b. underlying insurance applies, but is not collectible, regardless of the reason.

# Conditions

## Appeals

At our option we can initiate or participate in an appeal of a judgment against any insured if the judgment is for more than the underlying limits of insurance.

If we initiate or participate in an appeal, we will pay the costs of the appeal but in no event will our liability for loss exceed the Limits of Insurance as stated in Item 4 of the Declarations.