THE CHUBB COMMERCIAL EXCESS - NEW YORK

**Conditions (continued)**

7. The aggregate limits of this policy as shown in the Declarations will be increased in proportion to any policy extension provided in accordance with paragraph 6. above.

**Premium**

The premium for this policy as stated in Item 3 of the Declarations is a flat premium. It is not subject to adjustment unless an endorsement is attached to this policy.

**Titles of Paragraphs**

The titles of the various paragraphs of this policy and endorsements, if any, attached to this policy, are inserted solely for convenience or reference and are not deemed in any way to affect the provisions to which they relate.

**Transfer of Duties When a Limit of Insurance is Used Up**

1. If we conclude that, based on occurrences, offenses, claims or suits which have been reported to us and to which this insurance may apply, the:
   a. Other Aggregate Limit (other than the Products/Completed Operations Aggregate Limit);
   b. Products/Completed Operations Aggregate Limit; or
   c. Each Occurrence Limit;
is likely to be used up in the payment of judgments or settlements, we will notify the first named insured, in writing to that effect.
2. When a limit of insurance described in paragraph a. above has actually been used up in the payment of judgments or settlements:
   a. We will notify the first named insured in writing, as soon as practicable, that:
      (1) Such a limit has actually been used up; and
      (2) Our duty to defend suits seeking damages subject to that limit has also ended.
   b. We will initiate, and cooperate in, the transfer of control, to any appropriate insured, of all claims and suits seeking damages which are subject to that limit and which are reported to us before that limit is used up. That insured must cooperate in the transfer of control of said claims and suits.
We agree to take such steps, as we deem appropriate, to avoid a default in or continue the defense of, such suits until such transfer is completed, provided that appropriate insured is cooperating in completing such transfer.
We will take no action whatsoever with respect to any claim or suit seeking damages that would have been subject to that limit, had it not been used up, if the claim or suit is reported to us after that limit of insurance has been used up.

Form 07-02-1022 (Ed. 5/94)
Contract
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