THIS PARAGRAPH DOES NOT APPLY IF THE EXPIRATION DATE OF THIS POLICY AND THE EXPIRATION DATE OR ANNIVERSARY DATE OF THE IMMEDIATE UNDERLYING POLICY ARE IDENTICAL. IF THIS POLICY IS A RENEWAL OF A SIMILAR POLICY UNDERWRITTEN BY THIS COMPANY, THE APPLICABLE AGGREGATE LIMIT OF LIABILITY OF THIS POLICY FOR THE FIRST PERIOD SHALL BE REDUCED BY ANY AMOUNTS PAID OR PAYABLE ON ACCOUNT OF INJURY OR DESTRUCTION TAKING PLACE DURING THE FINAL AGGREGATE PERIOD OF THE POLICY RENEWED. THE FINAL AGGREGATE PERIOD OF THE POLICY RENEWED SHALL BE DETERMINED IN THE SAME MANNER AS THE FINAL AGGREGATE PERIOD FOR THIS POLICY.

PART V - CONDITIONS

1. UNDERLYING INSURANCE - CHANGES DURING THIS POLICY PERIOD

ANY CHANGE IN COVERAGE IN THE UNDERLYING INSURANCE SHALL BE PROMPTLY REPORTED TO THE COMPANY AND THE INSURED SHALL, UPON REQUEST, FURNISH THE COMPANY WITH COPIES OF SUCH CHANGES. ANY CHANGE IN THE PREMIUM FOR THE UNDERLYING INSURANCE SHALL BE PROMPTLY REPORTED TO THE COMPANY AND THE PREMIUM FOR THIS POLICY, SUBJECT TO THE MINIMUM PREMIUM, MAY BE ADJUSTED IN ACCORDANCE WITH THE MANUALS OF THE COMPANY THEN IN EFFECT.

2. NOTICE OF LOSS; PARTICIPATION IN DEFENSE BY THE COMPANY

WRITTEN NOTICE OF AN OCCURRENCE WHICH APPEARS LIKELY TO INVOLVE THIS POLICY SHALL BE GIVEN BY OR ON BEHALF OF THE INSURED TO THE COMPANY OR ANY OF ITS AUTHORIZED AGENTS AS SOON AS PRACTICABLE. THE COMPANY AT ITS OWN OPTION MAY, BUT IS NOT REQUIRED TO, PARTICIPATE IN THE INVESTIGATION, SETTLEMENT OR DEFENSE OF ANY CLAIM OR SUIT AGAINST THE INSURED.

3. ACTION AGAINST THE COMPANY

NO ACTION SHALL LIE AGAINST THE COMPANY UNLESS, AS A CONDITION PRECEDENT THERETO, THE INSURED SHALL HAVE FULLY COMPLIED WITH ALL THE TERMS OF THIS POLICY.

ANY PERSON OR ORGANIZATION OR THE LEGAL REPRESENTATIVE THEREOF WHO HAS SECURED A JUDGMENT AGAINST THE INSURED SHALL THEREAFTER BE ENTITLED TO RECOVER UNDER THIS POLICY TO THE EXTENT OF THE INSURANCE AFFORDED BY THIS POLICY. NOTHING CONTAINED IN THIS POLICY SHALL GIVE ANY PERSON OR ORGANIZATION ANY RIGHT TO JOIN THE COMPANY AS A CO-DEFENDENT IN ANY ACTION AGAINST THE INSURED TO DETERMINE THE INSURED'S LIABILITY. ANY PAYMENTS BY THE COMPANY UNDER THIS CONDITION 3 SHALL DISCHARGE THE COMPANY'S OBLIGATION TO THE INSURED TO THE EXTENT OF SUCH PAYMENTS.