# Policy Document

## A. Conditions of This Policy

This is a condition of this policy that the insured shall not be entitled to any refund of premium due to the cancellation of this policy, except as provided in the section on "Cancellation."

## B. Premium

The premium for this policy will be computed on the basis stated in the Declarations. The advance premium stated in the Declarations, unless otherwise specified, is an estimated premium only. The actual premium shall be computed upon termination of this policy at the end of a twelve-month period if the policy is written for a three-year term. If the earned premium is more than the advance premium paid, the insured shall pay the excess to NORTHBROOK. If the earned premium is less than the advance premium paid, NORTHBROOK shall return the difference subject to the annual minimum premium as stated in the Declarations.

## C. Inspection and Audit

NORTHBROOK may inspect the insured's property and operations and audit the insured's books and records at any time at NORTHBROOK's option during the policy period and within three years after the final termination of this policy. These actions are solely for NORTHBROOK's benefit and they shall not be a representation that the insured's property and operations are safe, healthful or are in compliance with any law, rule or regulation.

## D. Notice of Occurrence

When there is an occurrence which may result in a claim under this policy, the insured shall notify NORTHBROOK at its Home Office address in writing as soon as possible, giving particulars sufficient to identify the insured and available information on time, place, and circumstances of the occurrence. The insured will also send NORTHBROOK a legal papers that relate to this occurrence.

## E. Suit Against NORTHBROOK

No action shall be against NORTHBROOK unless, as a condition precedent thereto, there shall have been full compliance with all the terms of this policy, nor until the amount of the insured's obligation thereunder has been finally determined either by judgment against the insured after actual trial or by written agreement of the insured, the claimant and NORTHBROOK. Any person or organization or the legal representative thereof who has secured such judgment or written agreement shall thereafter be entitled to sue under this policy to the extent of the insurance afforded by this policy. No person or organization shall have any right under this policy to sue NORTHBROOK as a defendant in any action against the insured to determine the insured's liability, nor shall NORTHBROOK be implicated in the conduct of the insured's legal Representative, Bankruptcy or insolvency of the insured or the failure of NORTHBROOK of any of its obligations hereunder.

## F. Other Insurance

Except as respects coverage written specifically as contributing insurance with this policy or to apply excess of this policy, this policy shall be excess insurance over any other insurance available to the insured with respect to an occurrence covered hereunder.

## G. Subrogation

In the event of any payment under this policy, NORTHBROOK shall be subrogated to all of the insured's rights of recovery against any person or organization and the insured shall execute and deliver instruments and papers and do whatever else is necessary to secure such rights. The amount recovered as subrogation shall be apportioned in the inverse order of payment of ultimate net loss to the extent of the actual payment. The expenses of all such recovery proceedings shall be apportioned in the ratio of respective recoveries.

## H. Changes

This policy must be endorsed in writing to change any of its provisions.

## I. Assignment

Assignment of interest under this policy shall not bind NORTHBROOK unless its consent is endorsed hereon.

## J. Cancellation

This policy may be cancelled by the insured by surrender thereof to NORTHBROOK or by mailing to NORTHBROOK written notice stating when thereafter such cancellation shall be effective. This policy may be cancelled by NORTHBROOK by mailing to the insured at the address shown in this policy or last known address written notice stating when, not less than thirty (30) days thereafter, such cancellation shall be effective. However, if NORTHBROOK cancels the policy because the insured has failed to pay a premium when due, this policy may be cancelled by NORTHBROOK by mailing a written notice of cancellation to the insured stating when, not less than ten (10) days thereafter, such cancellation shall be effective. The mailing of notice as above shall be sufficient proof of notice. The time of surrender or the effective date of the cancellation stated in the notice shall become the end of the policy period. Delivery of such written notice either by the insured or by NORTHBROOK shall be equivalent to mailing.

If the insured surrenders premiums shall be computed in accordance with the customary short rate table and procedure. If NORTHBROOK cancels, earned premium shall be computed pro rata. Premium adjustment may be made at the time cancellation is effected and, if so, then made, shall be made as soon as practicable after cancellation becomes effective. NORTHBROOK's check or the check of its representative mailed or delivered as aforesaid shall be a sufficient tender of any refund of premium due to the insured.

## K. Sole Agent Clause

If there is more than one Named Insured hereunder, the Named Insured first named in Item 1 of the Declarations shall be deemed to be the agent for all Named Insureds with respect to notice of cancellation, payment of return premium, payment of unabsorbed premium deposit refunds (dividends) and in all other matters pertaining to this insurance.